An Internship Report Final On Shahjalal Islami Bank Limited. Bangladesh
An Internship Report Final On Shahjalal Islami Bank Limited. Bangladesh
An Internship Report Final On Shahjalal Islami Bank Limited. Bangladesh
On
General Banking and Customer Service
SHAHJALAL ISLAMI BANK LIMITED
SUBMITTED BY
BBA PROGRAM
UNIVERSITY
SUBMITTED TO
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Table Of Contents
Chapter
Particulars
Page
No.
Letter of Submission
Acknowledgement
ii
Preface
iii
Executive Summary
iv
Chapter One
Chapter Two
Chapter Three
11
11
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Chapter Four
Chapter Five
12
12
13
General Banking
4.1 General Banking Division
16
16
20
23
24
25
26
29
34
36
37
5.2 Observations
39
5.3 Recommendations
39
5.4 Conclusions
41
Bibliography
42
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CHAPTER # 01
Orientation of the Report
1.1 Origin of the Study
This report originated as an academic requirement of BBA Program of University of South Asia.
After completion of the program a student must submit the report on the assigned topic to the
department. The program is three months duration.
1.2 Objective of the Study
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Statement of affairs.
Bank Rate sheet.
Daily,weekly report
Bangladesh Bureau of statistics report.
Different publications regarding banking function and foreign exchange operation.
SJIBL website
The scope of the report is the Mirpur branch of Shahjalal Islami Bank Limited (SJIBL) and its
operation throughout the country.
1.5 Limitations of the Study
During the study, I have faced the following limitations:
Three months time is not enough for such an extensive study. It is very difficult to
collect all the required information in such a short period.
Lack of availability of sufficient data
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CHAPTER # 02
Theoretical Aspect of Islamic Banking
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To extend co-operation to the poor, the helpless and the low income group for their
economic enlistment.
To play a vital role in human development and employment generation.
The expansion and unfolding of Islamic banking along with traditional interest based banking
is a recent phenomenon. Islamic banking is an inseparable part of Islamic economy. During
fifties it was only a subject matter of research and was limited to the writings of scholars and
philosophers. During the sixties actual experiments were made and in the seventies Islamic
banking institutions started
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gaining strength. The eighties and nineties are the period of consolidation and now Islamic
banking is coming up as the only welfare banking system of the modern world.
Consequently, Islamic banking movement achieved steady progress and assumed significant
dimension and role with the establishment of the Nasser Social Bank (1972) Faysal Islamic
Bank in Egypt and Sudan (1977), Jordan Islamic Bank for Finance and Investment was
established in Jordan in (1978), Turkey in (1983). Pakistan declared all banks as Islamic in
1978 and Iran declared in 1984. Emergency of development Bank as an International
Financial Institution with a view to institutions was considered as a milestone in the history
of Islamic banking.
As on today, more than 300 Islamic financial institutions in about 50 countries operation
throughout the world covering both Muslim and non-Muslim countries of various socioeconomic environment.
2.4 Islamic Banking Movement in Bangladesh
In August 1974, Bangladesh signed the charter of Islamic Development Bank and committed
itself to recognize its economic and financial system as per Islamic Shariah.
Bangladesh government subscribed recommendation of Islamic Foreign Ministers
conference held in Senegal in 1978 regarding systematic efforts to establish Islamic banks in
the member countries gradually.
In January
1981, the then President of the Peoples Republic of Bangladesh while addressing
the 3rd Islamic Summit Conference held at Makkah and Taif suggested, The Islamic
countries should develop a separate banking system of their own order to facilitate their trade
and commerce.
Earlier in November 1980, Bangladesh Bank, the countrys central bank send a representative
to study the working of several Islamic banks of different countries.
In November 1982, a delegation of IDB visited Bangladesh and showed interest to participate
in establishing a joint venture Islamic Bank in the private sector. They found a lot of work
had already been done and Islamic banking was in a ready form immediate introduction
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Two professional bodies Islamic Economies Research Bureau (IERB) established in 1976 and
Bangladesh Islami Bankers Association (BIBA) established in 1980 made significant
contributions towards introduction of Islamic banking in the country. They came forward to
provide training on Islamic banking to top bankers and economists to fill-up the vacuum of
leadership for the future Islamic in Bangladesh. They also held seminars, symposia and on
Islamic economics and banking throughout the country to mobilize public opinion in favor of
Islamic banking.
At last, the long drawn struggle to establish an Islamic bank in Bangladesh became a reality
and Islamic Bank Bangladesh Limited was founded o 30th March, 1983 in which 19
Bangladeshi national, 4 Bangladeshi institutions and 11 banks, financial institutions and
government bodies of the Middle East and Europe including IDB and two eminent
personalities of the Kingdom of Saudi Arabia joined hands to make the dream a reality.
Al Baraka Bank Ltd. (now recognized as the Oriental Bank) was established in 1987.
Al Arafah Islami Bank and Social Investment Bank Ltd. were established in 1995.
Shamil Bank of Bahrain (Islamic Bankers) has started its operation in 1997.
Shahjalal Islami Bank Ltd. was established in 2001.
Exim Bank Ltd. converted its entire banking operation into Islamic Banking from July
2004.
Nine conventional banks namely Prime Bank Ltd. Dhaka Bank Ltd. South East Bank Ltd.
Premier Bank Ltd. The City Bank Ltd. Jamuna Bank Ltd. Arab Bangladesh Bank Ltd.
Standard Chartered Bank and the HSBC have so far established Islamic Banking branches in
some major cities.
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CHAPTER # 03
Shahjalal Islami Bank Limited & Its
Profile
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4 Vision Mission
Vision:
To provide quality services to customers.
To set high standards of integrity.
Mission:
To expand Islamic banking throughout welfare oriented banking system.
Ensure equity and justice in economic activities.
Extend financial assistance to poorer section of the people.
Achieve balance growth and equitable development.
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CHAPTER # 04
General Banking
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Introduction:
Shahjalal Islami bank limited is a commercial bank and it plays a very important role in our
economy; in fact it is difficult to imagine how our economic system would function efficiently
without the help of commercial bank. They are heart of our financial structure since they have
the ability, co-operation with the Bangladesh Bank to add to the money supply of the nation and
thus create additional purchasing power. These characteristics set commercial banks apart from
other financial institution. In addition to issuing deposits payable on demand they accept time
deposit. By lending and investing these resources and by transferring funds throughout the
nation and even between countries, they make possible a more complete utilization of resources
of the nation. Although banks create no new wealth, their lending. Investing and related
activities facilitate the economic process of production, distribution and consumption. There are
mainly three sections in SJIBL via General Banking Division, Investment Division and Foreign
Exchange Division. These Divisions have small departments or units under them.
4.1 General Banking Divisions:
There are four sections working together to fulfill the target of the organization.
Account opening and Customer Service Department
Remittance Department
Cash Department
Accounts Department
2
Bank account is a contractual relationship between a bank and the customers. It is the best way
for a customer to build relationship with the bank. Like interest-based conventional banks, the
main function of Shahjalal Islami Bank Limited (SJIBL) is to mobilize saving and provide
financial support to the entrepreneurs. Depositors receive interest in a predetermined rate for
their deposits make with an interest based banks, where SJIBL neither pay not receive interest
and mobilizes saving of the common people in line with Islamic Shariah.
Deposit account can take in a various forms such as:
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For Partnership:
Copy of Partnership Deed of the Firm.
List of Partners with their address and phone number.
Copy of Trade License.
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Extract of Resolution of the Partners of the Firm for opening the account and
authorization for its operation duly certified by the managing Partner of the Firm.
For Registered Partnership, Certificate of Registration of the Firm along with duly
certified copy of the Partnership Deed.
Two recent passport size photographs of each Partner/Signatory duly attested by the
Introducer.
Copy of Passport of each Partner/Signatory, if available or
Commissioners/Chairmans Certificate or Latter of Introduction by a person
acceptable to the Bank.
TIN Certificate.
Certified true copy of the Memorandum and Article of Association of the Company.
Certified true copy of Certificate of Incorporation of the Company.
Certified true copy of Certificate of Commencement of Business of the Company in
case of Public Limited Company.
Latest list of Directors with address and phone number along with Form XII.
Extracts of duly adopted Resolution of the Board of Directors of the Company for
opening the Account and authorization for its operation duly certified by the
Chairman/Managing Director of the Company.
Copy of Trade License.
Two recent size photographs of each signatory duly attested by the introducer.
Copy of the passport of each signatory, if available or
Commissioners/Chairmans
Certificate or Letter of Introduction by a person acceptable to the Bank.
TIN Certificate.
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Install
ment
Period
3 Years
5 Years
8 Years
10
Years
500
20,90
0
39,10
5
74,03
4
1,04,
423
1,000
41,80
0
78,21
0
1,48,
068
2,08,
846
2,000
83,60
0
1,56,
420
2,96,
136
4,17,
692
5,000
2,09,0
00
3,91,0
50
7,40,3
40
10,44,
230
10,000
4,18,0
00
7,82,1
00
14,80,
680
20,88,
460
25,000
10,45,
000
19,55,
250
37,01,
700
52,21,
150
50,000
20,90,0
00
39,10,5
00
74,03,4
00
1,04,42,
300
Period of Scheme
Provisional Rate
3 Years
12.%
Remarks
Credit Account
Number is
required
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Provisional Rate
11.61%
Provisional Rate
11.00%
Period
5 Years
10 Years
12 Years
15 Years
20 Years
Installment Amount
(Per Month)
12,800/=
4,800/=
3,550/=
2,360/=
1,275/=
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The instrument is not crossed since crossed instruments are not payable over the
counter.
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The amounts is words and figures are written and do not differ.
There is no alternation anywhere on the instrument.
In case of order Cheque the proper identification of the payee ensure to the
satisfaction of the Bank.
The instrument bears the signature of the drawer.
The number of the instrument along with preceding series if any, conform to the
number/series issued and recorded in the relative account particulars.
The instrument bearing similar number was not been paid earlier.
Local Remittance
Local Remittance means sending money from one place to another for the customers and it is
very important service system in our country. For this service, our country business sectors
are get facility by transfer funds from one place to another. Some of the instrument that
Shahjalal Islami Bank Limited, Mirpur Branch provides are immense beneficial to the clients.
These are:
1 Demand Draft (DD)
2 Pay Order (PO)
3 Telegraphic Transfer (TT)
Demand Draft (DD):
Demand Draft is an order of issuing bank in another branch of the same bank to pay specified
sum of money to the payee on demand. It is generally issued when customer wants to remit
money in any place which is out of the clearing house area of issuing branch payee can be
purchaser himself or another. Bearing money may be risky. It is a negotiable instrument and it
can be crossed or not. For payment of DD, paying branch first has to be confirmed that the
DD is not forged one.
First bank Cheques the Test Code mentioned on the draft. If taste code agrees then
believe that DD is not forged and makes payments. For furth
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confirmation, the issuing bank sends an advice about the DD to the paying branch. For DD,
Commission is taken in the following way:
Particulars
Issuance
Telex Charge
Issuance Duplicate
Changes
@ 0.15% Minimum Tk. 25.00
At actual/Minimum Tk. 50.00
Tk. 150.00
Charges
@ 0.15% or minimum Tk.
25.00
Tk. 100.00
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Clearing
Clearing Department works are classified in two ways:
Outward Clearing
Inward Clearing
4.7.1 Outward Clearing:
This instruments drawn on other banks, within the clearinghouse area, are deposited through
our clients are sent for collection is called outward clearing.
Procedure for Outward Clearing:
Instrument received
Check these items in the instrument: a) date, b) branch, c) amount in words and figure
d) signature
Special crossing seal, clearing A/C credited
Entry in the Outward Clearing Register.
Preparation for Clearing House: a) Schedule making, b) send to
principal office.
The amount in party A/C in the clearing part is not in the available balance part of the
computer program. If the instrument is honored then the amount merges are available
balance. This is done by customized software prepared by SJIBL OT Department.
4.7.2 Inward Clearing:
When we receive cheque drawn on our branches within the clearinghouse area presented by
other banks is known as inward clearing:
Procedure for Inward Clearing:
Instrument (DD/Cheque/PO) comes from principal office
Entry in Inward Register
Cheque in computer
DD DD payable
Pay Order respective register
Sign in the register by authorized officer
Cancellation of instrument
Send IBCA to Local Office for honored instrument
Send Return memo, showing cause, to Local Office for dishonored
instrument.
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Cash payment:
Cash is paid in payment counter against the following instrument:
Cheques
Cash debit voucher
Pay-in-slip
Pay Order, DD etc.
Banks expense also paid to outsider through cash debit voucher.
Procedure:
Receive of the cheques with a signature behind it.
1 Scrutinize it by an authorized officer.
2 Submit to computer-to-computer section for checking the available balance.
3 Cancelled & seal up Pay in Cash a
4 Again submitted to computer section for debiting the party A/C and seal up Posted.
5 Send to cash counter payment officer.
6 Cash officer checks the cancellation, seal and sea
7 Entry the payments register.
8 Take another signature of payee behind the cheque and pay cash.
Cash Remittance:
Requisition letter, which must be authorized by the Manger, is sent to Principal Officer for
Cash Remittance.
Inward Cash:
Outward Cash:
Cash Balance:
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Total receiving + Opening balance Total payment = Closing balance for that day &
opening balance for the next day.
Check it with computer sheet.
Counting cash.
Entry the cash balance register.
Write cash position memo with denomination.
Counter Limit:
Everything has its limitation. Cash counter of a branch also has limitation. The casher should
take cash within the limit of his counter. If the cash exceeds its counter limit, the cashier
should take the excess cash to safe. Counter limit of the Mirpur Branch is Tk. 1 (one) Crore.
Vault limit:
Vault is the very secret place to keep money in the bank. Usually vault is made of very hard
material like iron or steel, generally it is fireproof, damp-proof. The vault has a fixed limit
too. The limitation depends on the regular transaction of the branch. If the amount exceeds its
limit, the extra money should be sent to the Bangladesh Bank. The vault limit of the Foreign
Exchange Branch is Tk.1.5 (one and half) crore. If the amount exceeds its limitation and
accident occur, then the branch will be liable and the insurance company will not compensate
for that.
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CHAPTER # 05
Findings and Recommendations
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5.1Findings:
5.1.1-Evaluation of Financial activities of SJIBL
Growth of Paid Up Capital of Shahjalal Islami Bank Limited
Year
Total Deposit
(Taka in millions)
Growth
2010
2011
2012
2013
2014
3,452
4,453
5,566
6,679
7,347
----
30.01%
24.99%
19.99%
10%
From the figure below the observation is the growth rate of paid up capital was highest in
year 2011 after that the growth rate is increasing slowly.
Chart Title
2016
50.00%
2014
0.00%
2012
-50.00%
2010
2008
Year
-100.00%
Growth rate
Year
Total Deposit
(Taka in millions)
Growth
2010
2011
2012
2013
2014
62,965
83,350
102,177
96,481
98,601
----
30.01%
24.99%
19.99%
10%
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Chart Title
2016
2014
2012
2010
2008
Year
40.00%
20.00%
0.00%
-20.00%
-40.00%
-60.00%
-80.00%
Growth rate
From the figure top it is outlined that the SJIBL has an declining trend in deposit from year
2010 to year 2014, which means the competition has increasing day by day.
Growth of Income of Shahjalal Islami Bank Limited
Year
Total Deposit
(Taka in millions)
Growth
2010
2011
2012
2013
2014
9,509
12,007
17,439
15,609
13,225
----
30.01%
24.99%
19.99%
10%
Chart Title
2016
60.00%
2014
40.00%
2012
20.00%
2010
0.00%
2008
2
Year
-20.00%
Growth rate
SJIBL has an overall sound growth rate in case of income from 2010 to 2014 the growth rate
and we can see that, Because of economy breakdown this bank face low revenue then
previous year.
The value added statement for the Bank shows how the value is created and distributed
among different stakeholders of the Bank
Particulars
Income From Banking
Services
Less: Cost of services &
supplies
Value added by the Banking
services
Non-banking income
Loan & Other Provisions
Total value added
Distribution of added value
To Employess as salaries &
allowances
To Government as Income
Tax
To Statutory Reserve
To Expansion & growth
Retained earnings
Depreciation
2014 Taka
2013 Taka
13,225,338,064
15,608,956,672
9,072,846,783
11,368,875,435
4,152,491,281
4,240,081,237
(1,557,500,000)
2,594,991,281
(311,000,000)
3,929,081,237
1,696,814,066
65.39%
1,430,058,136
36.40%
28,779,554
1.11%
1,077,864,592
27.43%
155,198,270
714,199,391
592,013,523
122,185,868
2,594,991,281
5.98%
27.52%
476,565,288
944,593,221
828,396,560
116,196,661
3,929,081,237
12.13%
24.04%
100%
100%
Frequency
Percent
Cumulative Percent
Excellent
18
36
36
Good
17
34
70
Moderate
15
30
100
Poor
Very Poor
Total
50
100
Analysis:
From the survey I found that 36 percent of the sample size found the quality of services
SJIBL is excellent and 34 percent found good.
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Result
Frequency
Percent
Cumulative Percent
Very Satisfied
20
40
40
Satisfied
17
34
74
Moderate
10
20
94
Dissatisfied
98
Very dissatisfied
100
Total
50
100
Analysis:
From the survey I found that 40 percent of the sample size is very satisfied with the
customer service whereas only 2 percent is dissatisfied. The reason he wanted more time for
installment but SJIBL did not accept it.
5.2 Observations:
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Limited space for customers demand. It has to refer to the head office. This is one of
the reasons for delay of customer service.
A very little manpower against the huge advance portfolio of GSA branch. Due to day
operational activities there is a little scope for proper monitoring. Sometimes it has
become burden for the officers to maintain the rules and regulations Imposed by the
central bank.
5.3 Recommendations:
There are Differences between Islamic banking system and Conventional banking system. I
have observed some shortcomings regarding operational activities of the bank. On the basis
of my observation I would like to recommend the following suggestions:
Shahjalal Islamic Bank ltd should be organize various seminars and symposium so
that both national and international people can be more familiar.
Bank should offer more facilities to the customers such as Credit card, Visa card,
Master card, ATM machine, etc.
As soon as possible the bank should start more branches in Dhaka City as well
country.
One of the business strategies is promotion. Successful business depends on how they
can promote their products or services to the customer. In this connection to improve
the business status bank should introduce more promotional programs.
As the clients are not familiar with introducing system, if possible the rule of
introducing to open an account should be changed. Because many face in problem to
arrange an introducer at the time of opening accounts.
Finally various media mentioning if general banking mechanism so that people can be
inspired should advise it.
More branches/networks to be developed for greater coverage especially in rural
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areas.
To encourage foreign remittances through correspondence overseas exchangers.
To strictly follow the foreign currency regulations.
More efforts to improve customer service.
The government may fix up tariff rates to prevent over invoicing.
Necessary incentives may be allowed to the exporters to upgrade the reserve position.
The Bankers may pursue the financial authorities like Bangladesh bank, Ministry of
finance and National board of revenue to liberalize the policy matters so that genuine
importers do not suffer due to any adverse policy matter.
5.4 Conclusion:
From the practical implementation of customer dealing procedure during the whole period of
my practical orientation in Shahjalal Islami Bank Ltd, I have reached a firm and concrete
conclusion in a very confident way. I believe that my realization will be in harmony with
most of the banking thinkers. Every bank has to survive amid a large number of banks
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including local and foreign. Thats why keep with expected profit margin of the time being
and for the future every bank should try heart and soul to please the customers in a smart and
trusty way. But quit regretful to mention that most of our bank face decreasing profit trend
due to switch over of their present customers to those foreign with higher customer service
facilities. So, timely decision for introducing sophisticated banking instruments should be
taken as early as possible. After taking effective measures regarding efficient employees and
instruments will help Shahjalal Islami Bank Limited to reach the pinnacle of success with
high profit and productivity. As a new bank it should be strong in financial side because there
is too much competition and new banks are growing up. If Shahjalal Bank adopts
professionalism within the framework of Shariah, they will be able to earn handsome Halal
profit and pay higher return to the depositors and shareholders. Ultimately, public will get
more confidence on this type of banking.
Now a days Islamic banking is becoming more popular day by day as more people want to
lead their life in terms of Islamic rule. Shahjalal Islami Bank Ltd is doing excellent job in
terms of Islamic banking system. But in my point of view people do not have the clear idea
about the difference between interest and profit as banks do not promote this in their
marketing strategy. As Islamic banking becoming more popular to the people of Muslim
countries, many multinational bank like HSBC, Standard chartered bank now a days open
islamic banking section (like AMANAH) in their bank. Even many conventional banks in
Bangladesh have already open Islamic banking section. It is become new marketing strategy
for banks to attract new customer. Shahjalal Islami Bank Ltd is playing a leading role in
economic development of the country along with maintaining standard level of services. It
understands the needs of the customers and thus it understands the needs of the nation.
Shahjalal Islami Bank Ltd and its contribution to the economy of Bangladesh along with high
level of corporate social responsibility are providing it a way to move forward in faster than
other banks in the country.
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Bibliography
1)
2)
3)
4)
5)
6)
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