Internship PDB Salahuddin General Banking Final Part

8/10/2019 Internship PDB Salahuddin General Banking Final Part

1/90

Internship Program is a scope for acquiring practical knowledge after successful

completion of academic curriculum. Theoretical knowledge gets a complete shape

only when it is applied in a practical field. To breeze up the gap between theory and

practice, Department of Business dministration of International Islamic !ni"ersity#hittagong has introduced the internship program for BB course to bring the student

closer to the practical work. This is undoubtedly a "aluable appreciable addition to the

institutional education.

I ha"e accomplished my internship program at $ocial Islami Bank %imited, Dewanhat

Branch. It is a second generation Islamic Bank and it is one step ahead from

other banks not only in making pro t but also in serving people in

an e cient way. To meet the customer needs and demand, the bankhas launched some lucrative product and services under the

guidelines of Islamic Shariah.

During my & months internship program, I'"e tried my best to get knowledge about

the (eneral Banking operation with special emphasis on their performance.

The program in fact, a great endea"or is to make the students familiar with the real

business situation and to prepare them to match their theoretical knowledge with

practical field.

1


2/90

The study carries much importance in view of the fact that theeconomic development of angladesh is closely linked with the

strong and healthy nancial organi!ations which facilitate

mobili!ation of domestic and foreign funds on a large scale. anking

organi!ations are doing their "obs more competitively now a day.

#ttracting the people to save their money by developing various

products and schemes, investing the funds in di$erent pro table

sectors, helping in e%port and import business, providing services incase of inward and outward remittance etc.

)owe"er, Bangladesh entered in Islamic banking system only in *+ &, with the

establishment of Islami bank Bangladesh. s Bangladesh is the world third largest

muslim ma-ority country, whose religion prohibits earning or paying interest in

transaction . nd to meet the demand of those large population $ocial Islami Bank %imited launched its operation on o"ember //, *++0.

s third generation islami bank $ocial Islami Bank %td. $ocial Islami Bank %td.

!ndertakes all types of banking transaction to support the de"elopment of trade and

ecommerce in the country. $IB%'s ser"ice is also a"ailable for the entrepreneurs to set

up new "enture. The bank gi"es special emphasis on e1port and import, trade

financing and finance to women entrepreneur.

$IB% is a pioneer in introducing on2line banking among all the Islami Banks of thecountry with state2of2the2art banking software, which will enable the bank to perform

as any branch real time banking ser"ice to the clients. The state2of2the2art banking

software of the bank will enable to perform as any branch real time banking ser"ice to

the clients. $IB% is supported by core banking solutions and our products 3 ser"ices

are strongly backed by IT infrastructure, which are upgraded 3 e1panded on

continuous basis.

&

*.* Importance of the $tudy


3/90

$IB% has set its strategy to con"ert all its banking acti"ities from traditional branch2

based banking system to an ideal blending of both centralized processing unit 4#P!5

and effecti"e operation of branch that based on modern essence of banking.

The bank is running its payment system successfully through B #P$, B67T under

B #) in order to boost up its businesses in multiple dimensions. dopting B #)

$ystem as per guidelines of Bangladesh Bank, $IB% ensures security, safety and

hassle free faster transactions from end to end. 8oreo"er, the bank is effecti"ely

adopting regulatory guidelines on IT risk management.

ow a days social islami bank has become synonym of quality banking products and

ser"ices. It is hoped that the ndings of the study will be useful for thereaders and young learners to get knowledge about the topic.

'


4/90

The main ob-ecti"e is to know general banking of $ocial Islami Bank %imited. To

attain main ob-ecti"es the specific ob-ecti"es are as follows.

To make clear the practical and theoretical sense of general banking acti"itiesof $ocial Islami Bank %imited.

To identify weather $IB% maintains Islamic guidelines or not in bankingacti"ities

To e"aluate the performance of (eneral Banking products of the branch.

To e"aluate whether the general banking products of $IB% is able to satisfycustomer needs

To find out the problem and recommend necessary suggestions to o"ercomethe problems

(

1.& )b"ectives of the Study


5/90

Primary sources2

Practical work e1posure with the different desks of general banking

department of $ocial Islami Bank %td.

7ace to face con"ersation with the e1isting 3 prospecti"e clients.

Informal con"ersation with the respecti"e officers 3 staffs of the branch.

$econdary sources2

nnual report of $ocial Islami Bank %td.

Different circular sent by )ead office of $IB%, Bangladesh Bank and others

regulatory bodies.

9ele"ant books, articles and -ournals.

:fficial website information of $IB%.

*

1.' +ethodology of the Study


6/90

I ha"e been assigned in the Dewanhat Branch of $ocial Islami Bank %imited and ha"e

been familiarized with the banking en"ironment for the first time. Indeed. I ha"e had

an opportunity to gather e1perience by working in the different departments of the

branch. The area of concentration of this analysis is confined to in"estigating different

aspects of (eneral Banking of $IB% as well as problems and prospects and by this

way an endea"or is made to gi"e recommendation for remo"ing the problem.

*.; Benefits of the $tud


7/90

%imitation is common phenomena in e"ery study which has great impact on report.

Despite of my sincerest endea"or some limitation hampered in preparing a perfect

report.

Due to time limitations, many of the aspects could not be discussed in the

report

6"ery organization has their own secrecy that is not re"ealed to others.


8/90

2.1 Background of Social Islami Bank Limited

Bangladesh entered in Islamic banking system only in *+ &, with the establishment of

Islami bank Bangladesh. s Bangladesh is the world third largest country, whose

religion prohibits earning or paying interest in transaction. nd to meet the demand of

that large population $ocial Islami Bank %imited has launched its operation on // nd

o"ember, *++0.

The bank is registered under the company ct *++; with its head office in *0

Dilkusha #= , Dhaka2*>>>. Its authorized capital of the bank is Tk. *>,>>>million

and paid2up capital is Tk. ?&+&.+&million in />*/. 7irstly the bank inserted its

operation in Dhaka and there after it has broaden its operation in #hittagong, Dhaka,$ylhet, @hulna, 9a-shahi, Barisal and 9angpur


9/90

2.2 Mission, Vision and Values of SIBL

$ocial Islami Bank %imited is focused on deli"ery of best ser"ices in all areas of banking acti"ities with the aim to increase the "alue of shareholders and offer highest

possible benefits to the customers. They must ha"e the mission as well as "ision what

should back e"ery efforts of the organization. s it is said , Amission without "ision is

a daydream and "ision without mission is a nightmare.

2.2.1 Mission of the Social Islami Bank Limited

Transformation to a ser"ice2oriented technology2dri"en profit

earning bank.

6nsure fast, accurate and best2in2class customer ser"ice.

:ptimum return on shareholders' equity.

Introducing inno"ati"e Islamic banking Products.

ttracting and retain high quality human resources.

Pro"iding support for social benefit organizations2 by way of

mobilizing funds and social ser"ices.

2.2.2 Vision of Social Islami Bank Limited

s $IB%'s -ourney towards continuous e1cellence thus it is stri"ing to become the

country's leading Islamic Bank offering one2step ser"ice of an wide range of "alue

added products and ser"ices meeting the needs of our customers, conducting business

ethically in according best utilization of the most modern state2of2the2art2

technological solutions through creation of a pro2acti"e organizational culture based

on sound team spirit, mutual understanding and pragmatic leadership alwaysremaining open to new ideas and adaptable to the best practices in the market

0


10/90

ensuring recognition and quality banking e1perience to our customers and deli"er best

"alue to all our stakeholders as well.

2.2.3 Corporate alues SIBL Ltd.

Towards the ourney of e1cellence, $IB% has changed its brand logo. The new logo

depicts bird's wings with + feathers to represent its "alues2comfortable and safe flying

in the economic sky of the country connecting it with the global sky by passing the

territorial boundary.

!onest"# honest to its customers, employees, regulators, shareholders and

others.

$fficienc"# gaining efficiency through best use of man and machine.

%ccounta&ilit"# accountable tit e stakeholders and to the society at large.

'ransparenc"# transparent in each and e"ery banking transaction.

(le)i&ilit"# ser"ice fle1ibility is one of the most important features.

Inno ation# continuous inno"ati"e idea generations and designing of banking

products and ser"ices.

*elia&ilit"# de"eloping a wide scale public confidence.

'echnolog"# pro"iding upgraded technological banking ser"ices.

1


11/90

2.3 Corporate Information

Social Islami Bank Limited

!ead office+ Cit" center1 3, Moti-heel Commercial %rea haka#1 , Bangladesh

/hone+ 0 12 1122

(a)+ 20 0

6mailC info sibl2bd.com, ceo sibl2bd.com

>>

Listed 5ith Chittagong Stock$)change Ltd

; th :ctober, />>0

%uthori6ed capital 7up to 2 128 *>,>>> 4Tk. In million5

/aid up Capital 7up to 2 128 ?&+&.+& 4Tk. In 8illion5

Shareholders9 $:uit" 7up to 2 128 *>* *.+E 4Tk. In 8illion5

'otal %sset 7up to 2 128 **0*?0.+0 4Tk. In 8illion5

4um&er of emplo"ees 7up to 2 128 *?/0

Current 4um&er of Branches +?

11


12/90

2.; Board of irectors

Board of directors consists of + members, including #hairman, Fice2chairmen, and

8anaging Director.

1&

8r. 8d. nisul 2o3ue

lha- $k. 8ohammad9abban li

8a-or 49etd5 Dr. 8d.

9ezaul )aque

lha- $ultan 8ahmood

#howdhury

8r. bdul wal Patway

lha- asiruddin

8r. 8ohammad zam

8r. 8ohammad 7azley

+r. +d. Sha 3ur

#hairman

Fice #hairman

Director

8anaging Director


13/90

2. Branch of Social Islami Bank Limited+

t present $ocial Islami Bank %imited has +? Branch.

i ision 4ame Branch no

Dhaka di"ision ;hittagong di"ision /E

$ylhet di"ision >;

@hulna di"ision *>

9a-shahi di"ision *>

Barisal di"ision >*

9angpur >*

Total +?

1'


14/90

2. Management !ierarch" of SIBL

Chairman

Managing irector

eput" Managing irector

$)ecuti e Vice /resident

Senior Vice /resident

Vice /resident

Senior %ssistant Vice /resident

%ssistant Vice /resident

(irst %ssistant Vice /resident

Senior $)ecuti e


15/90

1*

/.E 7unctions of $ocial Islami Bank %imited


16/90

2. /roducts and ser ices of SIBL

eposits /roducts+

l2


17/90

In estment /roducts+

Bai28urabah

Bai28ua--al

)ire Purchase !nder $hirkatul 8elk

Bai2$alam

Huard

$86 3 gricultural 7inance

Ser ice /roducts+

:nline Banking

T8 /E=E

8obile Banking

9emittance

%ocker

1-


18/90

2.0 >reen Banking Issue of SIBL

(reen Banking is an emerging issue In the present banking arena. (reen Banking is a

holistic approach which encourages en"ironmental protection, sustainability,

resource2sa"ings, and economic attitude in personal and professional life among

others.

(reen Banking issues are properly being addressed at $IB% as per guidelines of

Bangladesh Bank. Bangladesh Bank "ide B9PD #ircular no .>/ dated /E.>/./>**

ad"ised all banks to start (reen Banking cti"ities comprising a set of initiati"es in

>& 4three5 phases with specific tie frame ranging from December &*, />** to

December &*, />*&.

2.0.1 Strateg" (rame5ork of >reen Banking

/hase Compliances

/hase#1

*.* Policy formulation and go"ernance

*./ Initiating in2house en"ironment management

*.& Introducing green marketing

*.; :nline banking

*.0 $upporting 6mployee training, consumer awareness and

green e"ent

/hase#2 /.* $ector specific en"ironmental polices

/./ (reen strategic planning

/.& $etting up green branches

/.; 9igorous programs to educate clients

/hase#3 &.* Designing and introducing inno"ati"e products

1/


19/90

&./ 9eporting in standard format with e1ternal "erification

2.0.2 %chie ements in >reen Banking

SI 4o. Issue %chie ement

1 7ormation of (reen Banking

!nit

(reen Banking !nit has been restructured

for smooth functioning of (reen acti"ities

2 #irculation of 6n"ironment

Due Diligence46DD5

6n"ironment Due Diligence 46DD5

checklist is being #irculated "ide

Instruction #ircular no. />**=/& dated8ay /&, />**

3 #irculation of en"ironment

risk rating 46995

6n"ironment risk rating 46995 is being

monitored as per instruction #ircular no.

/>**=/& dated December /+,/>**.

; #irculation of green office

(uide

(reen office guide checklist is being

monitored as per instruction circular

no./>**=/+ dated December/+,/>**

7ormation of (reen Banking

policy

(reen Banking policy of $IB% has been

appro"ed by the Board of directors of the

Bank i

10


20/90

2.1 (uture /lan

$IB% has the plan to focus on the following areas of operation for promoting (reen

Initiati"esC

To popularize :nline Banking

To increase Internet Banking

To promote Tree Plantation #ampaign

To promote green initiati"es through ad"ertisement in print=electronic

media

To rationalize use of consumption of paper, water, electricity and

utilities

To reduce 6mission of #arbon

To protect air=water from pollution

&


21/90

2.11 Competiti e situation of SIBL

Internal %nal"sis+ Internal nalysis has two components $trength and weakness.

Strength+ $trength is a company's internal capabilities that gi"e a company its

competiti"eness.

6fficient and dequate human resources

$atisfactory performance

(ood reputation

Pro"iding better ser"ices in comparison to that of other pri"ate banks

!ni"ersity :f Information Technology and $ciences

$


22/90

Interior design decoration

:nline banking system

$uitable employee en"ironment without any harassement

few online charges

)igh rate of profit

?eakness+


23/90

Powerful communication network

If higher liability pricing are pro"ided it is possible to mobilize a good "olume

of deposit

'hreats+ Threats is an e1ternal en"ironment due to threats a company may lose its

competiti"e ad"antage.

!nhealthy competition by other pri"ate banks

:nline system is risky

61istence of huge branch of different banks around that same area

/.*/ )ow $IB% maintain Islamic rules in banking acti"ities

2.12.1 Code of Conduct for the $mplo"ees

dhere to the $hariah Principles.

dhere to the disciplinary measures of the bank.

dhere to applicable laws and regulations during performance of duties.

To inform the customers about the benefits and risks of the products and

ser"ices offered to them.

ot to be engaged in any acti"ity that can be classified as personal business.



24/90

ot to beha"e in contradiction with the principles of -ustice, integrity, honesty,

reliability and social responsibility.

ot to deri"e any personal benefits both from their own -ob potentials of their

customers by using their positions and titles.

ot to accept presents from the current or potential customers, other than

those presents accepted by the bank personnel under the established practices

in the bank.

2.12.2 $thical /rinciples of SIBL

:b-ecti"ity2the bank shall possess strict principle of ob-ecti"ity in its day to

day banking operations in relations to its customers, employees, shareholders,other banks, other organizations by maintaining and protecting the stability

and Dewanhat in the banking sector.

ust and equitable2the bank shall ha"e no discrimination and a"oid all forms of

bias in its attitudes towards employees as well as to its customers.

)onesty2the bank during its operations shall stick to the honesty principle in

relations to customers, employees, shareholders, other banks, regulators and

the stakeholders.



25/90

Impartiality2the bank is impartial towards its customers based on their

nationality, religion, financial and social standing and gender during banking

ser"ices.

9eliability2the bank shall offer clear, comprehensible and correct information

to its customers within the principle of reciprocal Dewanhat during ser"ices

and transactions and to pro"ide the customer ser"ices in a timely and

complete manner.

Transparency2 the bank shall inform its customers in an open, easily

understandable and clear way regarding the underlying rights and

responsibilities, benefits and risks attached to the products and ser"ices

offered.

Insider trading2 the bank has a clear policy and take all measures in order to

pre"ent the use of insider information for the trading purposes.

Personnel beha"iors2the bank shall a"oid all kinds of practices and

applications that may cause unfair competition in the employment of the

personnel.

#ompetition2the bank shall take appropriate measures to take the challenges of

industry competition in compliance with the laws and regulations. During the

$IB%'s actions to defeat the competiti"e forces2all of its acti"ities within the

free market economy shall a"oid any unfair means which may cause

indiscipline in the economy or industry or a be termed as immoral or

un-ustified beha"ior or against the principles of integrity. ll actions against

competition shall rather aimed to 4*5 o"erall de"elopment of the financial



26/90

sectors 4/5 de"elop public Dewanhat on o"erall banking operations 4&5 obser"e

the common interest of banks.d"ertisements and nnouncements2 $IB% shall act honestly, realistically, and

in compliance with legal regulations and with the general moral principles

during its announcements, ad"ertisements and notices under the publicity and

ad"ertising acti"ities regarding products and ser"ices as well as its financial

structures. The bank shall a"oid all acts and beha"iors that may damage the

reputation of the banking as a profession. The bank shall also ensure that the

announcements, ad"ertisements and notices do not contain any statements or

e1pressions degrading or humiliating other banks, or the products and ser"ices

of other banks.

#ustomer #omplaints2 $IB% shall establish a system in order to respond all

and any kinds of questions of their customers stemming from the ser"ices

offered and shall accordingly inform to customers about this system.

$ecurity2 $IB% shall recognize the concept of J'security'' that includes all

measures towards the protection of all and any ser"ice mediums of the bank in

banking sector including technical hazards in the ser"ices offered to the

customers.


27/90

producti"ity during the working hours, and show utmost efforts for pre"enting

o"ertime work and for that its employees use their annual lea"es regularly.



28/90

(eneral Banking

2.1 >eneral &anking department of SIBL

(eneral banking is the front2side banking ser"ice department. It performs the corefunctions of the bank. It deals day2to2day transactions. . It opens new accounts, remit

funds, issues bank drafts and pay orders etc. $ince bank is confined to pro"ide the

ser"ices e"eryday, general banking is also known as Jretail banking. It takes deposit

from the customer and meets the customer demands for cash by honoring their

checks. Broadly, (eneral Banking Department of $IB% has the following section2

Banker2 customer relationship begins with the opening of an account by the customer.

:pening of account binds the same into a contractual relationship. In some general banking acti"ities, there is no relation between banker and customers who will take

only one ser"ice from bank. :n the other hand, there are some customers with who

banks doing its business frequently.


6eneral anking

7ash#ccount )pening

8ail recei"e anddispatch

4emittance

7learing


29/90


30/90

ccounts opening section deal with new, prospecti"e and e1isting customer. Banker

and customer relationship begins with this section. This is the most important section

in banking sector because of success and failure depends on its. Banks performs the

following ser"ices under this section.

s a front2side banking ser"ices department, pro"ides all kinds of information

to customer regarding their products.

:pening of different types of account.

Issue of checkbook.

Transfer and closing of account.

6nquiry of account.

#hecking the signature of the client.

2.2.1 Various t"pes of account offered &" SIBL

$IB% offers "arious types of account under Islamic $hariah to satisfy the demand of

customer. These are as followsC

ame of the account #ode o.

l2


31/90

2.2.2 /rocedure to open an account

7or opening an account, at first the prospecti"e account holder will apply for opening an account filling up account opening from. ccount opening from

consist of the name of branch, type of account, name of bank and branch, =#

opening date, name of the applicant4s5, present address, permanent address

passport number 4if any5, date of birth, nationality, occupation, nominee4s5,

instruction 4if any5, initial deposit, specimen signature 4s5 of the applicant 4s5,

introducer's information etc.

The prospecti"e customer should be properly introduced by the followingsC

n e1isting customer of the bank.

:fficial of the bank not bellow rank of assistant officer.

respectable person of the locality who is well know to the manager

or authorized officer.



32/90

2.2.3 'he formalities re:uire to opening an account are sho5n in the follo5ingchart+

Two copies of passport size photograph duly attested by the introducer.

$ignature of the prospecti"e account holder in the account holder in the

account opening form and on the specimen signature card duly attested by the

introducer.

Then the concerned authority will allocate number for the new account.

The customer then deposit the Ainitial depositK by filling up a deposit slips.

Initial deposit to open a current account in $IB% is Tk. *>>> and sa"ing is Tk.

0>>

8oreo"er, the account is opened after the payment of initial deposit. $IB% maintain

all kinds of accounts in computer by gi"ing a new account number.


#pplicants needto ll up theprescribed

application form

#pplicants is

re3uire to ll upspecimensi nature sheet

8or individualintroduction isneeded by an

o cer or

The authori!edo cer

scrutini!es the9ocument

Issuance of deposit slip

and thedeposit mustbe aid either

8or gettingche3ue:book

applicantsneed to ll up

che3ue

#ccount is opened


33/90

/./.; *e:uired ocuments@/apers for opening ifferent %ccounts

7or 8$D=


34/90

2.3 *emittance section

9emittance section is one kind of source of banks income. $o, banks need to pay

attention to this section to prompt ser"ices. #lients need to transfer money from one

place to another 7or their business or other purposes. Banks fulfill this need of

customers by means of remittance ser"ice.

2.3.1 /a"ment


35/90

mount #ommission Fat Total #harge

!p to Tk. *,>>,>>> 0> 0

T@. *,>>,>>*20,>>,>>> *>> *0 **0

Tk. 0,>>,>>*2

*>,>>,>>>

*0> /& *E&

T@. *>,>>,>>* abo"e />> &> /&>

2.3.2 emand raft 7 . 8

This is an instrument through which customer's money is remitted to another

person=firm=organization in outside the clearinghouse area from a branch of one bank

to an outstation branch of the same bank or to a branch of another bank 4with prior

arrangement between that bank with the issuing branch5. This is an order instrument

in which the issuing branch gi"es instruction to the payee=drawer branch to pay

certain amount of money to the order of certain person=firm=organization.

#ommission, "at and postage are charged for issuing DD.

61ampleC 2 To transfer money from #hittagong to Dhaka

/rocedure for issuing . .+

:btain D.D. application from duly filled in and signed by the

purchaser=application.

9ecei"e the amount in cash=transfer with prescribed commission and postage

amount.

Issue the D.D. duly in and signed by the authorized officer.

Insert test number 4where applicable5

6nter in the D.D. issue register.

Issue ad"ices to the payee branch.

/rocedure for pa"ment of . .+

61amine the D.D. by "erifying the signature, test number, serial number etc.

6nter the D.D. payable register.



36/90

Ferify with the IB# number.

Pass necessary "ouchers.

Charge for emand raft+

8inimum amount for a DD is T@. /0.

#ommission is the >.>*0L of the DD amount.

Fat is T@. *0L on the commission amount

2.3.3


37/90

'rend of *emittance Mo&ili6ation

4Tk. In Thousand5

9emittance 8obilization L #hangesGear />*/ />*&

Pay :rder ?+/0 ?&0/0 +.*>LDemand Draft > > >.>L

:nline Transfer > > >.>L

(raphical Presentation, Trend of 9emittance 8obilization

%nal"sis+ In />*& 4up to o"ember5 9emittance 8obilization in Pay :rder is

increased by +.*L compare to />*/. But 9emittance 8obilization in Demand draft

is >.>> because client can en-oy the opportunities DD through the Pay :rder. nd

9emittance 8obilization in :nline Transfer is also >.>> because :nline Transfer free

now.



38/90

2.; Clearing Section

#ollections of cheques, drafts etc. on behalf of its customer is one of the basic

functions of a commercial bank. The department that performs this function is knownas the clearing department. #learing stands for the mutual settlement of claims made

in among member bank at an agreed time and place in respect of instruments drawn

on each other. #learing )ouse is an arrangement under which member banks agree to

meet , through their representati"es, at the appointed time and place to deli"er

instruments drawn on the other and in e1change to recei"e instruments drawn on

them. The net amount payable or recei"able as the case may be, is settled through

account kept with controlling bank 4Bangladesh Bank=$onali Bank5.

The clearinghouse sits for two times a working day. The $IB% %ocal :ffice Br sends

the instruments through Inter Branch Debit d"ice 4I.B.D. 5. $IB% %ocal :ffice acts

as an agent in this case. 7or this, %ocal :ffice branch gi"es the following entries,

$IB% (eneral =# 4%ocal :ffice Br5 NNNNNDr.

#ustomer's =#NNNNNNNNNNN#r.

If the instrument is dishonored, the instrument is returned to the %ocal :ffice branch

through I.B.D. . along with the following entries,

#ustomer's =#NNNNNDr.

$IB% (eneral =#NNNNNN#r.



39/90

2.;.1 '"pes of clearing

:utward clearingC


40/90

2.;.3 Bangladesh %utomated Clearing !ouse 7B%C!8

B #) is the first e"er electronic clearing house of Bangladesh.


41/90


42/90


43/90

2. Cash Section

The cash department is the riskiest department of the bank. This is the

section where tight security is required to a"oid any accidents. There is a

limit to be amount of cash that each counter can carry carrying of e1cess

cash is a"oided for safety reasons.

2. .1 Cash *eceipt+ when clients deposit cash in the bank, the bank officer on

receipt of the cash and the pay in slip=credit "oucher shallC

#heck and count the recei"ed cash

8ake sure that the amount in word and number in the deposit are same#heck the account title and the number


44/90

2. .2 Cash /a"ment+

Prior payment of cash it is the officer's duty to make sure that the cheque=or the

instrument has been genuinely passed. The following common precaution is

thoroughly practiced before honoring a cheque.

#heck of it is an open or crossed check

The branch name in the cheque

The date in the cheque is "ery crucial. #heques are normally "alid ?

months and pre2dated cheques are asked to present after the date gi"en

The apparent tenor of the cheque.


45/90

Vault *egister+ The book where cash amount a"ailable in the branch is maintained.

That is, the amount in the "ault register book.

Cash *egister+ This register keeps record of all incoming cash

Cash /a"ment *egister+ similar to the cash register book, this book keeps tracks of

all outgoing cash that are all payments.

Cash Balance Book+ this is the book where cash balance is recorded by counting the

notes and coins that are physically a"ailable. The balance in this book is compare with

the "ault register, which should be the same. In case there is an error, then the figures

would not match but if no discrepancy is found then anything is to be worried about.

'rend of Cash 'ransaction

4Tk. In #rore5

#ash TransactionGear />*/ />*& L #hanges#ash 9ecei"e *>./ 00. *.E/L#ash Payment E.;; ;/./; /.&EL



46/90

(raphical Presentation of #ash Transaction

%nal"sis+ In />*& 4up to o"ember5 #ash 9ecei"e is increased by *.E/L compare

to />*/. #ash Payment is also increased by /.&EL in />*& compare to />*/.


47/90

'rend of Mail recei e and ispatch Section

4Tk. In 8illion5

8ail recei"e 3 Dispatch $ection L #hangesGear />*/ />*&

8ail 9ecei"e &*> * ; &./&L8ail Dispatch //0 *&/> /.+0L

(raphical Presentation of 8ail 9ecei"e and Dispatch

%nal"sis+ In />*& 4up to o"ember5 8ail recei"e is increased by &./&L compare to

/>*/. nd mail Dispatch also increased by /.+0L in />*& compare to />*/.



48/90

2. %ccounts epartment Section

ccounts section is the ner"e center of a bank. s all transactions carried by a bank is

being legalized as far as accounting is concerned. If transaction were not recorded

properly there would be disequilibrium in state of the bank. There can be imbalance in

the cashbook thus the whole mechanism will collapse. The regular tasks of the

department areC

To record all transaction in the cash book

To prepare daily fund position, weekly position, periodic statement of

affairs

Prepare necessary statements for reporting purpose

To pay all e1penditures on behalf of the account

8ake salary statements

Branch to branch fund remittance

Publishing basic data of the branch etc.



49/90

Islamic Banking

Islamic banking refers to a system of banking or banking acti"ity that is consistent

with the principles of Islamic law 4$hariah5 and its practical application through thede"elopment of Islamic economics. $hariah prohibits the payment or acceptance of

interest fees for the lending and accepting of money respecti"ely, 49iba, usury5 for

specific terms, as well as in"esting in businesses that pro"ide goods or ser"ices

considered contrary to its principles 4)araam, forbidden5. th

century that a number of Islamic banks were formed to apply these principles to

pri"ate or semi2pri"ate commercial institutions within the 8uslim community.

3.1 afela # Mudara&a !a-- deposit Scheme

)a-- is one of the most important bases of Islam. 9eligious 8uslims tends to perform

)a-- when they gather financial ability. But they find it difficult to gather the required

amount to perform as there is no such systematic way of sa"ing the money. To help

our muslim brothers $ocial Islami Bank %td introduced )a--=!mrah $cheme.

The basic rules of this scheme areC

This account shall be called as )a--=!mrah $a"ings $cheme

ny 8uslim 9esiding in Bangladesh may open an account under this scheme

This scheme will be accounted under 8udaraba rules. The Bank as 8udarib

and the account holder will be treated as $ahib2e28al. The account holder will

ha"e to en-oy the Profit = %oss of the Banks respecti"e year.

The depositor will be pro"ided with a Deposit book and the deposited amount

must be written and "erified by the Bank's authorized official. In case of

losing the deposit book Tk. /> has to be deposited for issuing a new one.

In case of change of address the bank must ha"e to be notified as soon as

possible.

http://www.siblbd.com/home/hajj_deposit_schemehttp://www.siblbd.com/home/hajj_deposit_scheme


50/90

Pro"isional profit will be charged on une and December closing. If the

account holder is unable to perform the )a--=!mrah or any other person does

not perform instead of the account holder then the corresponding account will

be treated as a 8udaraba $a"ings account and accordingly profit will bedistributed.

n introducer must be there to open an account.

ny installment size can be chosen during the opening of the account, which

cannot be changed afterwards.

This scheme can be opened in the name of any under2aged people. In such

cases the rules relating to open an account for an under2aged person must be

followed.

In case of closing the account before maturity profit will be gi"en as per rules

of lwadiah #urrent account. o profit will be gi"en in case of closing the

account before ? 4$i15 months.

8onthly installment of the account will be deposited within *>th day of each

month. ny ad"ance installment is always appreciable.

If a depositor fails to deposit the installment of one month then in the ne1t

month two installments must be deposited in due time. In case of failing of

two consecuti"e installments, prior permission of the Branch incumbent must

be taken to deposit all the pending installments.

In case of failing of & consecuti"e installments the account will be

automatically changed to sa"ings account.

8oney cannot be withdrawn from the )a--=!mrah account therefore cheque

book will not be issued.

fter the scheduled time of the scheme if the accumulated amount with profit

is less than the amount of total estimated cost to perform )a--=!mrah then the

account holder must deposit the rest amount at a time. If for any reason the

account holder cannot perform.



51/90

$imilarly if the total cost for performing )a-- is less than the accumulated

amount the rest will be returned to the account holder.

The account holder while disbursement of total amount must pro"ide adequate

proof of identity.

The Bank retains the authority to change, modify, rectify or cancel the rules

regarding the scheme and the account holder must abide by the decision.

3.2 Mudara&a Bashastan Sa ings scheme

)ousing has become one of the most fundamental needs of human ci"ilization. But inthis early />th century most of the people of Bangladesh are lacking to fulfill this

basic need. s a follower of Islamic $hariah, $ocial Islami Bank %td focuses forward

to help people to fulfill this basic need.

8ain features of this schemeC

The applicant has to fill the application form duly.

n amount of Tk. 0>>=2, *>>>=2, *0>>=2, />>>=2 or any amount multiple can be

deposited under this scheme.

The depositor will en-oy earnings from in"estments under Islami $hariah

based 8udaraba rules.

s per rules of Islami banking the actual amount may "ary from the estimated

amount.

In case of failing of & 4Three5 consecuti"e installments the account will be

closed. In such cases profit will be gi"en as per sa"ings account rate, but no

profit will be gi"en if the account is closed within ?4$i15 months.

The account holder may choose any installment size on account opening,

which cannot be changed later.

Installment must be deposited within first *0 day of the month. ny amount

deposited as ad"ance installment is always welcome.



52/90

The scheme is *0 years long and if the depositor intends to withdraw the

amount then profit will be gi"en as per sa"ings rate.

T Q, Gearly e1cise duty etc applicable on the profit will be borne by the

depositor.

In case of change of address the Bank should be notified immediately.

n account in the name of under2aged person can be opened under this

scheme.

fter successful continuation of the scheme for 0 years the depositor may take

up to >L loan of the deposited amount.

fter successful completion house building loan facility from the bank may be

considered by the bank authority.

The Bank retains the authority to change, modify, rectify or cancel the rules

regarding Bashthan $a"ings scheme and the account holder must abide by the

decision.

Income ta1 imposed on the earnings from the deposited amount should bededucted from depositors account.

3.3 /roshanti # Mudara&a Dakat Sa ings %ccount

Rakat is the most important foundation of $hariah based economy and is 7arz for

e"ery capable 8uslim. )owe"er Rakat payers face difficulties in calculating the e1act

amount of Rakat. That is why this J8udaraba Rakat $a"ings ccount' has beenintroduced like a special deposit scheme for Rakat payers.

The scheme holders shall conduct the account on the basis of 8udaraba policy

of Islami $hariah

The depositors shall get profit at the rate of *> per cent on daily balance.

The Rakat payers themsel"es or the bank on behalf of the Rakat payers can

withdraw the Rakat amount from the total sa"ings 4including profit5 after the

http://www.siblbd.com/home/proshantihttp://www.siblbd.com/home/proshanti


53/90


54/90

The abo"ementioned maturity amount may differ due to the annual profit rate

achie"ed by the Bank. The depositor will get more or less depending on the

profit rate.

7or the abo"e mentioned reason the depositor may get more or less amount of

monthly allowance also.

The depositor will get a receipt on the deposited amount.

In order to recei"e the monthly education allowance the depositor will ha"e to

submit all the 9eceipts duly discharged and proper instruction must be

pro"ided in writing to nominate a person for recei"ing the allowance.

The instrument cannot been cashed before maturity. In case of emergency if

the depositor wants to en cash before maturity the following rules will be

applicableC

If the instrument is encashed before E years then 8udaraba $a"ings Deposit will be

applied on the deposited amount.

If the amount is en cashed after E years then amount will be gi"en as per rules of Eyears scheme and for the rest years 8udaraba $a"ings Deposit rate will be applied.

In case of Death of the depositor the amount payable will be paid to the

nominee. If there is no nominee by submitting $uccession certificate the

amount will be paid to legal successor of the depositor.b. In case of death of

the depositor if the nominee wants to take monthly allowance for ? si1 years

then the instrument must be submitted to bank and should be duly discharged.

To issue a duplicate instrument the rules for issuing duplicate Term deposit

will be applicable.

T Q, F T, 61cise Duty as applicable by (o"ernment will ha"e to be borne by

the depositor.

Bank authority has the authority to change=amend the rules and regulations

regarding the scheme as and when required and the depositor must abide by

the rules.



55/90



56/90


57/90


58/90

3. SIBL Eoung Star %ccount

This types of account specially introduced to encourage school student to deposit

money by reducing tiffin cost. >.

The beneficiaries are entitled to daily profit on daily balance, which directly

adds to the account.

There is no need to keep minimum balance to run the scheme.

The scheme holders shall be pro"ided annual charge free Debit card and

#redit card of the bank.

The account holders shall be gi"en attracti"e gift hampers at the time of opening the account.


59/90

3. Special Sa ings Scheme for lo5er#income group 5orkers

7inancial inclusion of lower income groups specially the 98( workers is the core

concept of this scheme. "ailing this scheme lower income groups can now also earn

lucrati"e profit by in"esting small amount monthly.

This scheme is run in compliance with 8udaraba policy of Islami $hariah.

This scheme has been initiated for the lower2income group people especially

for women workers of 98( sector.

Depositing a small amount monthly the scheme holders can withdraw the total

deposit at a time including attracti"e profit or as in periodical=monthly pension

scheme after maturity.

$cheme holders can secure their future by withdrawing the amount in lump

sum or as monthly pension.

This scheme can be opened for a period of &, 0 and *> years.

The scheme holder shall get insurance facility if he or she becomes disable to

work due to any kind of accident including fire burn.

The scheme holders shall be entitled to insurance facility of up to Tk 0>,>>>

regardless of whate"er amount accumulated in the account by the monthly

deposits including the profit.

The scheme holder shall get separate insurance certificate in his=her name.

The scheme takers would get up to > percent in"estment facility on total

deposit.



60/90

The scheme holders are entitled to a sa"ings account at the bank.

The beneficiaries shall get annual charge free Debit card and #redit card of the

bank.

#onditions applicable.

3.0 Mudara&a Monthl" /rofit eposit Scheme

$ocial Islami Bank %td is an Islamic Bank ruled by Islamic $hariah. The bank is

operating in 7ormal, on27ormal and Foluntary banking sector for alle"iating po"erty

in the Bangladesh. But to reduce po"erty in a country like Bangladesh there is no

other alternati"e but increase internal deposit. Increase in deposit will increasein"estment and new in"estment will result in more employment. 7or this reason $IB%

ha"e introduced A8udaraba 8onthly Profit $chemeK.

!nder this scheme the depositor will get monthly profit on the deposited amount. The

reasons for introducing this scheme are as followsC

The scheme pro"ides monthly profit for ser"ice holders who may deposit the

pension benefit7or those Bangladeshis working abroad willing to deposit once and pro"ide a

fi1ed amount monthly to family and relati"e residing in Bangladesh

The trust and foundations willing to pro"ide monthly scholarship to students

against one time deposit

7or the parents who wants to bear educational e1penses of their child against

deposit

The payable profit will become due after * month of deposit. But the amount will be

deposited to account in the last week of the month.



61/90

(enerally, a depositor cannot withdraw the amount before 0 years. But, in

una"oidable circumstances the depositor can withdraw the amount and in that case.

The depositor will ha"e to submit the duly filled application form of the scheme.

The depositor will ha"e to maintain a 8udaraba $a"ings account in which the profit

of the scheme will be deposited.

In case of change of address the depositor must inform the bank as soon as possible.

If the scheme is closed before * year then no profit will be gi"en.



62/90

/roducts F Ser ices of SIBL

eposits /roducts+

l2


63/90

In estment /roducts+

Bai28urabah

Bai28ua--al

)ire Purchase !nder $hirkatul 8elk

Bai2$alam

Huard

$86 3 gricultural 7inance

Ser ice /roducts+

:nline Banking

T8 /E=E

8obile Banking

9emittance

%ocker

;.1.1 %l#5adiah Current eposit 7%?C 8

This account is similar to the demand deposit account of interest2based banks.

#on"entional interest2based banks do not pay interest on this type of deposit account.

In addition, depositors may withdraw all or a part of the funds deposited in this

account without restriction. The term al2wadiah means deposit of money allowing

somebody to claim the funds in the account any time. The bank as trustee preser"es

and safe keeps the funds deposited. Thus, depositors feel safekeeping their money

with the bank because the bank pro"ides assurance of returning their money on

demand.



64/90

Depositors are pro"ided with a cheque book. They can withdraw any amount up to the

balance at any time. The bank may charges fee on the account to co"er transaction

cost. l2wadiah Deposits are short term funds. Thus banks ha"e to be "ery careful as

to what types of pro-ects are financed.

Gearly maintenance fee Tk. &;0 4twice in a Gear5

'rent of %l# ?adiah Current eposit 7%?C 8

4Tk. In 8illion5

l */ />*&

In mount *E.;> *&.?/ 4/E.E0L5In o. of # ?0 *;& 0;.0;L

(raphical Presentation, trend of *& compare to />*/. !nsound economic condition and political instability aremainly responsible for that.



65/90

;.1.2 Mudara&ah Sa ings eposit 7MS 8

Interest2based banks recei"e deposits from clients in return for being paid a fi1ed

interest rate. $o, !nder the interest2based banking system, the relationship between

the bank and its depositors is essentially that of a debtor and creditor. In some

instances, depending on the type of account notice may need to be pro"ided to the

bank for a withdrawal of money e1ceeding specified amount.

The 8udarabah $a"ings account of $IB% is different from the chequing account of an

interest2based bank. 8udarabah is a form of business contract where one party

supplies money and the other party manages the business by in"esting labor and time.

Profits generated from the "enture are shared by both parties in a proportion agreed

upon at the time of contract.

Profit rate is ;L which is pro"isional and yearly maintenance fee Tk. &;0 4Twice in a

year5

'rend of Mudara&ah Sa ings eposit 7MS 8

4Tk. In 8illion5

8udarabah $a"ings Deposit L #hangesGear />*/ />*&

In mount ;.;E ?.+/ &0.;>LIn o. of # ; / & E>.&/L



66/90

(raphical Presentation, Trend of 8$D

%nal"sis+ In />*& 4up to o"ember5 8udarabah $a"ings Deposit in amount is

increased by &0.;>L compare to />*/. nd o. of account is also increased by

E>.&/L in />*& compare to />*/.

;.1.3 Mudara&ah 'erm eposit 7M' 8

!nder the term deposit account depositors are not allowed to withdraw money from

term deposit until the term matures. Term deposit arrangements under con"entional

banks result in a debtor2creditor relation as in the case of sa"ings deposits. The

depositors are not pro"ided with cheque books on term deposit accounts, but they are

gi"en term deposit certificates and paid a higher interest rate.

(enerally these types of deposits are recei"ed by an Islamic bank for a minimum

period of & months to & year ma1imum. The bank in"ests the money and shares any

profit with the depositor based upon a percentage agreed upon at the tie of contract. t

the end of the term the contract terminates and the depositors withdraw their money,

plus or minus any gains or losses.



67/90

Profit 9ate on 8TD

8udarabah Term Deposit 9ate of Profit

8TD 4* 8onth5 *>.0 4Pro"isional5

8TD 4& 8onth5 **.0 4Pro"isional5

8TD 4? 8onth5 **.0 4Pro"isional5

8TD 4* Gear5 **.0 4Pro"isional5

8TD 4& Gear5 */.0 4Pro"isional5

'rent of Mudara&ah 'erm eposit

4Tk. In 8illion5

8udabarah Term DepositGear />*/ />*& L #hanges

In mount /+.;E *;?.E+ E+.+/LIn o. of # 0? *+E E*.0EL

(raphical Presentation, Trend of 8TD

%nal"sis+ In />*& 4up to o"ember5 8udarabah Term Deposit in amount is increased

by E+.+/L compare to />*/. o. of account is also increased by E*.0EL in />*&

compare to />*/. 8udarabah term deposit increase both in no. of account and in

amount as $IB% pro"ides higher profit rate.



68/90

;.1.; Mudara&ah 4otice eposit 7M4 8

It is a deposit account open by customer where customer deposited money for short

period. #ustomer can withdraw money after gi"ing a short notice. This account holder

recei"es profit on his deposited money.

Profit rate is ;L which is pro"isional and yearly maintenance fee Tk. &;0 4Twice in a

year5

'rend of Mudara&ah 4otice eposit

4Tk. In 8illion5

8udarabah otice Deposit L #hangesGear />*/ />*&In mount /.;+ ;.E/ ;E./0L

In o. of # E *> &>L

(raphical Presentation, trend of 8 D

%nal"sis+ In />*& 4up to o"ember5 8udarabah otice Deposit in amount is

increased by ;E./0L compare to />*/. o. of account is also increased by &>L

compare to />*/.

;.1. Mudara&ah eposit Scheme 7M S8



69/90

$ocial Islami Bank %imited introduces a sa"ings scheme with high profit for the

purpose of increase sa"ings mentality.


70/90


71/90

;.2 Corporate Banking

#orporate banking is a term used to describe banking ser"ices that large companies,

go"ernments or other big institutions need in order to function day to day. #orporate

banking consists of simple business of issuing loans to more comple1 matters, such as

helping minimize ta1es paid by o"erseas subsidiaries and managing changes in

foreign e1change rates. Bankers associated with capital markets help companies raise

money by issuing equities or debt whereas corporate banking has the bankers who

typically help clients raise money through loans.

#orporate banking is a type of ser"ice offered by banks to corporations. It often

in"ol"es financing, cash management and other needs of the corporation. #orporate

banking has played a significant role in the world of business.

#orporate Banking is roughly the opposite of retail bank. 9etail banking caters to

indi"idual persons. 8eanwhile, corporate banking caters to companies and other large

corporations.

#orporate banking, also called corporate financing, is a specialized branch of finance

that deals specifically with corporations and their needs. The -ob of a corporate banker

is to enhance the corporate "alue of the company22its o"erall worth.

Corporate Social *esponsi&ilit"

s an Islamic Bank, $ocial Islami Bank %imited is quite conscious of its social

responsibility and always trying to participate in social cause program in the country.

The bank is committed to ser"e the society at large through its family empowerment

8icro In"estment, 8icro 6nterprise and $86 programs under non2formal sector,

social capital mobilization through # $) < H7 and other programs under "oluntary

sector. The bank has already formed #$9 Desk with the aim to ser"e humanity

through different philanthropic acti"ities gi"ing emphasis on health and 6ducation.

The bank belie"es that any kinds of social 3 philanthropic acti"ities would impro"e

the quality of the li"es of the poor masses of the country.



72/90

The Board of Directors of the Bank consists of winning personalities in respecti"e

area of Trade, #ommerce 3 Industry of the country. !nder the proacti"e

guidance, policy and direction of the Board, 8anagement conducts its business

operations. The #orporate (o"ernance systems in $IB% ensure transparency

and accountability at all le"els in conducting business.

The $hariah $uper"isory #ommittee is consisting a group of prominent Islamic

$cholars, 6conomists and %awyers to ad"ise the 8anagement on $hariah

matters relating to the business operations.

The Board of Directors pro"ides leadership and direction to the 8anagement to

attain goals and ob-ecti"es of the bank. The solid performance of the bank that

achie"ed is due to the di"ine blessings of llah $obhanahuS UTala and

constant guidance, cooperation and support of the Board 3 $hariah

$uper"isory #ommittee as well as committed, dedicated and hard work of the

8anagement Team.

;.3 >reen Banking Issue of SIBL

6reen anking is an emerging issue In the present banking arena.

6reen anking is a holistic approach which encourages

environmental protection, sustainability, resource:savings, and

economic attitude in personal and professional life among others.

6reen anking issues are properly being addressed at SI as per

guidelines of angladesh ank. angladesh ank vide 459 7ircular

no . & dated &-. &.& 11 advised all banks to start 6reen anking

#ctivities comprising a set of initiatives in ' =three> phases with

speci c tie frame ranging from 9ecember '1, & 11 to 9ecember '1,

& 1'.



73/90


74/90

2.0.2 %chie ements in >reen Banking

SI 4o. Issue %chie ement

1 7ormation of (reen Banking

!nit

(reen Banking !nit has been restructured

for smooth functioning of (reen acti"ities

2 #irculation of 6n"ironment

Due Diligence46DD5

6n"ironment Due Diligence 46DD5

checklist is being #irculated "ide

Instruction #ircular no. />**=/& dated

8ay /&, />**

3 #irculation of en"ironment

risk rating 46995

6n"ironment risk rating 46995 is being

monitored as per instruction #ircular no.

/>**=/& dated December /+,/>**.

; #irculation of green office

(uide

(reen office guide checklist is being

monitored as per instruction circular

no./>**=/+ dated December/+,/>**

7ormation of (reen Banking

policy

(reen Banking policy of $IB% has been

appro"ed by the Board of directors of the

Bank i

;.3 SM$ Banking


75/90

!/SM# SM$ 7'ransport8

Term Investment to purchase %ed asset.=?3ual +onthly Installment:?+Ibasis>

Baim# SM$ 7Installment8

Term In"estment to purchase transport for business purpose. 46qual 8onthly

Installment268I basis5

!/SM# SM$ 7Com.8

Term In"estment to purchase raw materials=goods.46qual 8onthly Installment268I

basis5

Baim# M$ 7Micro#$nterprise8

Term In"estment to meet up working capital requirement. 46qual 8onthly

Installment268I basis >

//># + Mura&aha# SM$

#ontinuous In"estment to meet up working capital requirement. 49e"ol"ing basis5



76/90

;.; e&it card, Credit cart F Visa card

;.;.1 SIBL e&it card

debit card 4also known as a bank card or check card5 is plastic cart that pro"ides the

cardholder electronic access to his or her bank account4s5 at a financial institution.

$ome cards ha"e a stored "alue with which a payment is made, while most relay a

message to the cardholder's bank to withdraw funds from a designated account in

fa"or of the payee's designated bank account. The card can be used as an alternati"e

payment method to cash when making purchases. In some cases , the cards are

designed e1clusi"ely for use on the Internet, and so there is no physical card.

n electronic card issued by a bank which allows bank clients access to their to

withdraw cash or pay for goods and ser"ices. this remo"es the need for bank clients to

go to the bank to remo"e cash from their account as they can now -ust go to an T8

or pay electronically at merchant locations. This type of card, as a form of payment,

also remo"es the need for checks as the debit card immediately transfers money from

the client's account to the business account .

;.;.2 SIBL Credit card

s per Islamic Banking (uidelines , Bai28urabha means buying goods and ser"ices

and selling it to the customers with markup profit. It can be sold to the customers

against full payment at the time of sale or installment payment in future date.

$IB% Fisa Islamic #redit #ard will be issued under Bai28urabha mode of

In"estment. Gearly /EL 8ark2up Profit will be charged with the purchase price og



77/90

(oods and $er"ices. :ther charges will be as per slandered of e1isting #ard 8arket

of Bangladesh.

;.;.3 SIBL VIS% Islamic Credit Card

In todayMs modern world #redit #ard is a "ery e1tensi"ely used mode of financial

transaction and it is widely known as APlastic 8oneyK. It has created an immense

impact in the life of the people all o"er the world. The same trend is being followed in

Bangladesh too. owadays the popularity of Islamic #redit #ards in Bangladesh Is

growing by leaps and bounds as domestic and foreign banks are earning substantial

profit through this product. n increased use of both local Dual #urrency Islamic

#redit #ard is taking place side by side with the e1pansion of personal banking

ser"ices. #ross2border business and tra"els are also helping the e1pansion.

$IB% is always willing to offer new and Islami $hariah compliant financial products

to its clients. Though $IB% is making late entrance in the card market, still we are

planning to complete significantly with other issuers.

VIS% Islamic Credit Card 7 ual8

%ocal and foreign currency in same plastic.

Is accepted at any FI$ and H2cash merchant outlets around the country and

o"er /; million FI$ outlets worldwide.

ll foreign currency transactions will be con"erted to !$ Dollars.

Issued under Personal tra"el Huota, 97#D Huota and 69H entitlement.

ny amount up to +>L of credit limit is a"ailable to you as cash from any%ocal and foreign FI$ T8s

ny amount up to +>L of credit card limit BDT can be transferred to 8$D

account with $IB% by fund transfer

9oaming bill of cell phone is payable through $IB% Dual #redit card

6commerce transaction can be e1ecuted by $IB% FI$ Islamic Dual #redit

#ard



78/90

VIS% Islamic Credit Card 7Local8

Is accepted at any FI$ and H2cash merchant outlets around the country

ny amount up to +>L of credit limit is a"ailable to you as cash from any

T8 displaying the FI$ logo 3 H2#ash logo.

ny amount up to +>L of credit card limit can be transferred to 8$D account

with $IB% by fund transfer

;. Balance 'ransfer

8ost of us are familiar with a credit card as a con"enient way to spend, whether we

use our plastic to pay for the weekly shop or to indulge in a bit of retail therapy. Butdid you know that you can also use a credit card to manage your debtsV If you are

cle"er, it can be a cheap way to borrow money and a lifeline for today's cash2strapped

consumers.

$IB% transfer money from one place to another place as per the order of its customers

through #redit #ard, 8ail Transfer 48T5, Telephone Transfer 4TT5, Demand Draft

4DD5 and Pay :rder 4P:5. They may recei"e ser"ice charge or commission for

rendering such ser"ices. #ustomers benefit from these ser"ices, as its helps them to

fulfill their financial needs timely.



79/90

;. 4e5 Che:ue Book

7ollowing procedures are maintained by $IB%, %ocal :ffice for issuing new

checkbook.

4a5 7irstly the customer will fill up the check requisition form.

4b5 The lea"es of the checkbook under issue are counted to ensure that all the lea"es

and the blank requisition slip are intact.

4c5 The officer writes =# number and branch name on all the lea"es of the

checkbook.

4d5 The name and the =# number of the customer are than entered in the

checkbook register against the particular checkbook series.

4e5 Then the officer sightseer, checkbook, and requisition slip

4f5 %astly the checkbook is handed o"er to the customer after taking

acknowledgement on requisition slip.

Check *e:uisition (orm



80/90

;. Stolen Card

If your credit, T8, or debit card is lost or stolen, federal law limits your liability for

unauthorized charges. Gour protection against unauthorized charges depends on the

type of card N and when you report the loss.

*eport Loss or 'heft Immediatel"

cting fast limits your liability for charges you didn't authorize. 9eport the loss or

theft of your card to the card issuer as quickly as possible. 8any companies ha"e toll2

free numbers and /;2hour ser"ice for such emergencies. :nce you report the loss of

your T8 or debit card, federal law says you cannot be held liable for unauthorized

transfers that occur after that time.

(ollo5 up 5ith a letter or email. Include your account number, the date and

time when you noticed your card was missing, and when you first reported the

loss.

Check "our card statement carefull" for transactions you didn't make.

9eport these transactions to the card issuer as quickly as possible. Be sure to

send the letter to the address pro"ided for billing errors.

Check if "our homeo5nerGs or renter9s insurance polic" co ers "our

lia&ilit" for card thefts. If not, some insurance companies will allow you to

change your policy to include this protection.



81/90

;. %ccount Closing

7or two reasons, one can be closed. :ne is by banker and other is by the customer.

B" &anker+

If any customer doesn't maintain any transaction within si1 years and the =# balance

becomes lower than the minimum balance, banker has the right to close an =#.

B" customer+

If the customer wants to close his =#, he writes an application to the manager urging

him to close his =#. Different procedures are followed in cash of different types of

=# to close. 7i1ed deposit =# is closed after the termination of the period. #losing process for current 3 sa"ings =#C

*. 9ecei"ing customer's application the officer "erifies the balance of the =#.

/. )e then calculates interest and other charges accumulated on the =#.

&. If it bears a credit balance, the officer writes ad"ice "oucher. )e gi"es

necessary accounting entries post to accounts section.

;. The balance is returned to the customer. nd lastly the =# is closed.

But in practice, normally the customers don't close =# willingly. t times, customers

don't maintain any transaction for long time. Is this situation at first, the =# becomes

dormant and ultimately it is closed by the bank.



82/90

.1 /ro&lems

$ocial Islami Bank is a second (eneration Islami Bank. ctually general

banking department consists with #ash department, #learing Department,ccount :pening Department. fter analyzing the (eneral banking of $IB%,

Dewanhat Branch with "arious tools and obser"ing "arious aspects I ha"e

identified the following drawbacksC

/ro&lems in Cash epartment+

dequate manpower not pro"ide in cash department in this branch of

$IB%.

In some cases cash limit of the branch is e1ceed the cash in safe limit.

8utilated notes are not disposing -ust in time by send it to Bangladesh

Bank.

6ntrance (ate of #ash #ounter of the branch found open and that was

not auto locked.

Branch is maintaining a kacha register as Fault 9egister where

necessary columns are not introduced. s a result Branch did not

maintaining 3 monitoring cash at counter limit.

Branch "ault key not changes regularly with its feeding branch.$tamp in hand register not properly maintained.



83/90

/ro&lems in Clearing epartment+

$ometimes clearing software face network problems

$ometimes Bangladesh uto 8ated #learing house 4B #)5 report takes long

time to settlement.

$ometimes B #) machine could not scan properly of folded cheque gi"en by

the clients.

$ometimes electricity problem causes late settlement.

Positi"e pay instruction slip not properly takes from the clients.

/ro&lems in %ccount *& in l2*/.

Both o. of account and amount deposited is in increasing trend in 8udaraba

Term Deposit. But compare to o. of account, amount deposited significantly

increased more because of the higher rate of profit.

$cheme Deposit has a significant increase both in o. of account and amount

deposited due to higher rate of profit.

%ow number of current and sa"ings account in $IB%, Dewanhat Branch due to

lack of customer base as it is a new branch.

In (eneral Banking acti"ities $IB% maintain Islamic 9ules but all customers

not habituated with islami banking rules and regulations.

In some cases customer are not satisfied with the Products and ser"ices

pro"ided by $IB%

%acks of proper ad"ertisement customer are not aware about the Islamic

Banking product and Islamic Banking.



84/90

The Bank has a large amount of idle deposit.

In the competiti"e market they don't ha"e sufficient T8 ser"ice compare to

other banks.

%ack of inter2branch reward system for better performance of the employee.

ll register not properly maintained by the client.



85/90

.2 *ecommendations

s a second generation Islami Bank $ocial Islami Bank functioning in better

way not in best way but trying to be the leading islami bank. To satisfy the

customer needs and to become the leading Islami Bank $IB% should implement

successfully the ideas of Islamic Banking. 9ecommendation for $IB%

*ecommendation for Cash epartment+

8anpower should be increased in #ash Department for better customer

ser"ice.

Branch must emphasi!e to keep cash within the limit of cash in safe

all time.

8utilated notes must be disposed -ust in time.

uto lock system must check and fit all times for ultimate compliance of

security.

ll register for cash department must properly maintain.

Fault key must change with feeding branch for proper security.



86/90

*ecommendation for Clearing epartment+

etwork problems sol"e by I#T department as soon as possible.

B #) processing needs to update day by day for better performance.

Branch ad"ice to customers not to folding any cheques.

Take initiati"e to collect positi"e pay instruction from clients.

*ecommendation for %ccount


87/90

.3 Conclusion

$ocial Islami Bank Bank %imited is a strong and effecti"e player in the financial

system. It is a solid, forward2looking, modern second generation islami bank with a

record of sound performance. It is committed to pro"ide high quality financial

ser"ices =products to contribute to the growth of (DP of the industrialization,

boosting up e1port, creating employment opportunity for the educated youth, rising

standard of li"ing of limited income group and o"erall sustainable socio2economic

de"elopment of the country. The bank has the goals to become the leading Islami

Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound

management etc.

s concluding remark the bank is able to attain a leading role with the *> years

success story but to remain unri"alled among new generation banks, the bank must

face new challenges. The bank must make a positi"e attempt to be more outward

looking in their goals and aware of what is happening. They must also emphasize on

the domestic scenario more closely and analyze any certain trends and strategies of

their competitors. The bank must accept challenges and think of them as an ob-ecti"e

to pursue future goals instead of blaming such failures on other factors and in this way

the Bank will be able to keep on playing its important roles in our economy. I wish

more success of $ocial Islami Bank limited, Dewanhat Branch.

s a second generation Islami Bank $ocial Islami Bank functioning in better way not

in best way but trying to be the leading islami bank. To satisfy the customer needs and

to become the leading Islami Bank $IB% should implement successfully the ideas of

Islamic Banking. 9ecommendation for $IB%

$ocial Islmi Bank %imited should increase prompt ser"ices and business

related suggestion to corporate clients

To stay in the competiti"e market $IB% should increase T8 ser"ices to

satisfy the clients



88/90

$IB% should increase ad"ertising regarding their products under the rules of

Islam and should pro"ide magazine containing how they maintain rules of

Islam in Banking acti"ities.

s a new branch $IB% should emphasize in 8arketing to increase o. of

account

$IB% should make efficient in"estment team to reduce idle money to increase

profitability of the bank

$IB% should make product "ariety under the rules of Islam to satisfy customer

need and should increase T8 ser"ices.

The Bank should use scientific performance appraisal system. 8anagementshould clarify the performance reports of the employee. But the bank should

introduce inter2branch reward system for best performance.



89/90

.3 Conclusion

$ocial Islami Bank Bank %imited is a strong and effecti"e player in the financial

system. It is a solid, forward2looking, modern second generation islami bank with a

record of sound performance. It is committed to pro"ide high quality financial

ser"ices =products to contribute to the growth of (DP of the industrialization,

boosting up e1port, creating employment opportunity for the educated youth, rising

standard of li"ing of limited income group and o"erall sustainable socio2economic

de"elopment of the country. The bank has the goals to become the leading Islami

Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound

management etc.

s concluding remark the bank is able to attain a leading role with the *> years

success story but to remain unri"alled among new generation banks, the bank must

face new challenges. The bank must make a positi"e attempt to be more outward

looking in their goals and aware of what is happening. They must also emphasize on

the domestic scenario more closely and analyze any certain trends and strategies of

their competitors. The bank must accept challenges and think of them as an ob-ecti"e

to pursue future goals instead of blaming such failures on other factors and in this way

the Bank will be able to keep on playing its important roles in our economy. I wish

more success of $ocial Islami Bank limited, Dewanhat Branch.



90/90

Bi&liograph"

Te1t book of Islamic Banking by Dr. $. 8. kkas

nnual report of $ocial Islami Bank %imited.

www.siblbd.com

Different kind of publications of $IB%.

Daily affairs $tatement of $ocial Islami Bank %imited

Documents

Internship PDB Salahuddin General Banking Final Part