Islamibank Bangladesh limited

5/28/2018 Islamibank Bangladesh limited

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Chapter- One

Introduction


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1.0 Introduction

For an expanding economy, a developed and efficient banking system is indispensable.

Among others, it helps transfer of financial resources from surplus units to deficit units

and, hence, helps accelerate the pace of development by securing uninterrupted supply of

financial resources to people engaged in numerous economic activities. The tremendous

development that the world economy has experienced in the last few decades was

contributed by several factors among which, growing institutional supply of loan able

funds must have played the pivotal role. The role of banking is comparable to what an

artery system does in the human body. Both commercial banks and other development

financial institutions provide short-, medium-, and long-term credits to businesspersons

and entrepreneurs who usually take the lead in ventures of economic development.Islamic banking has been defined in a number of ways. The definition of Islamic bank, as

approved by the General Secretariat of the OIC, is stated in the following manner. "An

Islamic bank is a financial institution whose status, rules and procedures expressly state

its commitment to the principle of Islamic Shariah and to the banning of the receipt and

payment of interest on any of its operations"(Ali & Sarkar 1995, pp.20-25). Shawki

Ismail Shehta viewing the concept from the perspective of an Islamic economy and the

prospective role to be played by an Islamic bank therein opines: "It is, therefore, natural

and, indeed, imperative for an Islamic bank to incorporate in its functions and practices

commercial investment and social activities, as an institution designed to promote the

civilized mission of an Islamic economy" (Ibid). Ziauddin Ahmed says, "Islamic banking

is essentially a normative concept and could be defined as conduct of banking in

consonance with the ethos of the value system of Islam" (Ibid).

Now a day, a modern banker must have to perform a number of ancillary services,

besides performing the two essential functions of accepting deposits and investing itsfunds. Remittance of funds can be considered as one of the most important ancillary

service provided by a Bank. With a network of the branches spread over the entire

country banks are eminently suitable institutions for the remittance of funds from one

place to another. Bank remittance is safe, swift, inexpensive, and simple. Bank takes the

risk of theft or loss of customers money in exchange of a very little commission. Again,


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the reserve of foreign remittance plays a great role in national economy. With various

types of accounts maintaining in international branches and coordinating international

banks these foreign currencies are being carried sending by non-resident Bangladeshis.

1.1 Background of the Study

With the rapid growing competition among nationalized, foreign and private commercial

banks as to how the banks operates its banking operation and how customer service can

be made more attractive, the expectation of the customers has immensely increased.

Reciprocating the sentiment, commercial and private banks are trying to elevate their

traditional banking service to a better standard, to meet the challenging needs and

demands. Side by side, these banks have now concentrated their attention towards

diversification of their products for better performances and existence. For the above

circumstances, it has become necessary for IBL, one of the leading commercial banks, to

focus its attention towards the improvement of the customer service. That is why it is

quite justified to make an in-depth study about its operation and evaluate the service

provided by this bank and scope for its improvement. The study may help formulating

policy regarding the ideas relating to the feelings of the customers and bankers.

Furthermore, IBBL executives who are actually executing the policies undertaken by the

top management will have a chance to communicate their feelings and will have the

feedback about their dealing from the customers.

1.2 Origin of the Report

Bachelor of Business Administration (BBA) is one of the most commendableprofessional degrees. The main objective of BBA degree is to provide the students with

the practical aspects of academic learning to the organizational setting. For the attainment

of that purpose curriculum and syllabus is designed in a manner so that students are

facilitated to have practical or empirical working experience to some extent. Inclusion of

internship is a proof of one of the attempts. WE am a student of IUBAT. In BBA, our


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major subject is Marketing. For that consequence, WE choose the banking sector for

performing our internship and the organization is the IBBL. Our research topic is

Customer Satisfaction in Remittance division of IBBL, Uttara branch.

1.3 Objectives

The objective of the study is to measure the consumer satisfaction in Remittance division

of IBBL, Uttara branch.

1.3.1 Broad Objectives

This internship report is prepared primarily to determining the Customer Satisfaction in

Remittance division of IBBL, Uttara branch.

1.3.2 Specific Objectives

More specifically, this study entails the following aspects:

To give an overview of IBBL. To focus on the services and facilities provided to clients of IBBL. To discuss the impacts of their policies on clients Satisfaction IBBL. To identify the consumers choices. To understand the problems of the customers during experimenting the remittance

service.

To analyzed marketing strategies for customer satisfaction of IBBL. To understand the problems of the customers to maintain transection ratio. To know how the company ensures the committed services to the customers.


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1.4 Scope of the study:

As a student of Bachelor of Business Administration (BBA) every student has to

conduct a practical orientation in any organization for fulfilling the requirements of the

14 weeks Internship Program. The main purpose of the program is to introduce the

students to the real corporate world. Our place of internship was Islamic Bank

Bangladesh Ltd. one of the leading Banks of Bangladesh. We have worked for 10

weeks at Different departments. The main intention of the study is the standards and

effects of client satisfaction to find, understand and document the processes and

activities carried by IBBL and correlate them to get a clear picture of the level of the

overall client satisfaction. The report covers details about the service, overview of the

company and also facilities provided by the company to satisfy their clients. The mainfocus is on the analysis of the clients satisfaction level. All the information is collected

from all the levels of employees and clients of IBBL. We hope that our report contains

all the necessary information needed to complete a successful internship report.

1.5 Methodology of the Study

In order to conduct this internship report both primary & secondary data have been

utilized.

1.5.1 Primary Data Collection

The primary data have been obtained through using following three techniques:

Face to face conversation with the employees. Deskwork in different sections/departments. To get quantitative data on customer satisfaction directly from customers with a

view to measure their level of satisfaction Weve interviewed 40 account holders of

IBBL having different profession & who lies in different age group. The interviews

have been conducted using a structured questionnaire containing 10 questions

representing the five dimensions of customer satisfaction measurement. A sample

questionnaire has been annexed in the appendix part.


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1.5.2 Secondary Data Collection

There have elaborations of different types of secondary data in our research. The sources

are of those datas are:

a. Internal Sources:

Banks Annual Reports Official Documents Website of the bank

b. External Sources

Published literatures Journals & Newspapers Consultation of related books & publications. Website Surfing Consultation of related books & publications.

1.6 Research design:

The research is exploratory in nature because the project paper attempt is to identify

whether the clients are satisfied with the service of IBBL or not.

1.6.1 Population:

The population of the research paper is all the clients who are getting service from IBBL

in remittance division. Our population of this research is the IBBL, Uttara branch

remittance clients and the clients are 3600 (approximate).

1.6.2 Element:

The sampling element of the research paper is each who is getting the service of

remittance from IBBL Uttara branch.


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1.6.3 Sampling Unit:

The sampling unit of the research paper is the clients who are getting service from IBBL

in remittance division.

1.6.4 Extent:

The extent of a research paper is the area, which the paper covers to fulfill the objectives.

Here it is IBBLs projects.

1.6.5 Sampling frame:

A sampling frame is the list of all sampling elements available for selection. The

sampling frame of this research paper is the list of clients who are getting service from

IBBL in remittance division.

1.6.6 Sample size:

Census research is conducted for the project paper. Sample size is the total number of

sample elements from the population selected in the sample, which represents the whole

population of the research. Among 3600 (approximate) clients WE have interviewed 40

clients who are getting service from IBBL in remittance division.


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Chapter Two

Organizational Overview


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2.0 Historical Background of IBBL

In August 1974, Bangladesh signed the Charter of Islamic Development Bank and

committed itself to reorganize its economic and financial system as per Islamic Shariah.

In January 1981, the President of Peoples Republic of Bangladesh While addressing the

third Islamic conference held at Mecca and Taif suggested The Islamic countries should

develop a separate banking system of their own in order to facilitate their trade and

commerce". This statement of the president indicated favorable attitude of the

government of the Peoples Republic of Bangladesh towards establishing Islamic banks

and financial institution in the country.

In early November 1980, Bangladesh bank, the countrys Central Bank, sent a

representative to study the working of several Islamic Banks abroad.

In November 1982, a delegation of IDB visited Bangladesh and showed keen 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 from for

immediate introduction. Two professional bodies of Islami Economics Research Bureau

(IERB) and Bangladesh Islami Bankers Association (BIBA) made significant

contribution towards introduction of Islami banking in the country.

They came forward to provide training of Islamic banking to top bankers and economists

to fill up the vacuum of leadership for the future Islami bank in Bangladesh. They also

had seminars, symposiums and workshops on Islami economic and banking throughout

the country to mobilize public opinion in favor of Islami banking. Their professional

activities were reinforced by a number of Muslim entrepreneurs working under the

support of the then Muslim Businessmen society (now reorganized as Industrialist &

Businessmen Association). The body concentrated mainly in mobilizing equity capital for

the emerging Islami bank.

At last, the long drawn struggle to establish an Islami bank in Bangladesh become a

reality and Islami bank Bangladesh limited was established in march 1983 in which 19

Bangladeshi national, 4 Bangladeshi institutions and 11 banks, financial institutions and


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government bodies of the middle East and Europe including IDB and two eminent

personalities of the kingdom of Saudi Arabia joined hands to made the dream a reality.

Later, other Islami Banks, Islami Insurance Companies and Financial Institution were

established in the country. Some traditional banks opened Islamic banking branches insome major cities.

2.1 Mission and Vision of IBBL

MissionTo establish Islamic Banking through the introduction of a welfare oriented banking

system and also ensure equity and justice in the field of all economic activities, achieve

balanced growth and equitable development through diversified investment operations

particularly in the priority sectors and less developed areas of the country. To encourage

socio-economic uplift and financial services to the low-income community particularly in

the rural areas.

VisionOur vision is to always strive to achieve superior financial performance, be considered a

leading Islamic Bank by reputation and performance.

Our goal is to establish and maintain the modern banking techniques, to ensure the

soundness and development of the financial system based on Islamic principles and to

become the strong and efficient organization with highly motivated professionals,

working for the benefit of people, based upon accountability, transparency and integrity

in order to ensure stability of financial systems. We will try to encourage savings in the

form of direct investment. We will also try to encourage investment particularly in

projects which are more likely to lead to higher employment.


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2.2 Strategic Objectives

To ensure customers' satisfaction. To ensure welfare oriented banking. To establish a set of managerial succession and adopting technological changes to

ensure successful development of an Islamic Bank as a stable financial institution.

To prioritize the clients welfare. To emerge as a healthier & stronger bank at the top of the banking sector and

continue stable positions in ratings, based on the volume of quality assets.

To ensure diversification by Sector, Size, Economic purpose & geographical locationwise Investment and expansion need based Retail and SME/Women entrepreneur

financing. To invest in the thrust and priority sectors of the economy. To strive hard to become an employer of choice and nurturing & developing talent in

a performance-driven culture.

To pay more importance in human resources as well as financial capital. To ensure lucrative career path, attractive facilities and excellent working

environment.

To ensure zero tolerance on negligence in compliance issues both shariah andregulatory issues.

To train & develop human resources continuously & provide adequate logistics tosatisfy customers need.

To be excellent in serving the cause of least developed community and area. To motivate team members to take the ownership of every job. To ensure development of devoted and satisfied human resources. To encourage sound and pro-active future generation. To achieve global standard. To strengthen corporate culture. To ensure Corporate Social Responsibilities (CSR) through all activities. To promote using solar energy and green banking culture and ecological balancing.


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2.3 Special Features of IBBL

All activities of the bank are conducted according to Islamic Shariah where profit isthe legal alternative to interest.

The bank's investment policy follows different modes approved by Islamic Shariahbased on the Qur'an & Sunnah.

The bank is committed towards establishing welfare oriented banking system,economic growth of the low-income group of people, create employment

opportunities.

According to the need and demand of the society and the country as a whole the bankinvests money to different 'Halal' business. The bank participates in different

activities aiming at creating jobs, implementing development projects of thegovernment and creating infrastructure.

The bank is committed to establish an economic system resulting in social justice andequitable distribution of wealth. It is committed to bring about changes in the

underdeveloped rural areas for ensuring balanced socio economic development of the

country through micro credit program and financing of SME's as well.

According to Mudaraba system, the depositors are the partners of the investmentincome of the bank. About 70% of the investment income is distributed among the

Mudaraba depositors.

To render improved services to the clients imbued with Islamic spirit of brotherhood,peace and fraternity and by developing an institutional cohesion.


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2.4 Core Values

Trust in Almighty Allah Strict observance of Islamic Shariah Highest standard of Honesty, Integrity & Morale Welfare Banking Equity and Justice Environmental Consciousness Personalized Service Adoption of Changed Technology Proper Delegation, Transparency & Accountability

2.5 Commitments

To Shariah To the Regulators To the Shareholders To the Community To the Customers To the Employees To other stakeholders To Environment

2.6 Recognition of Performance

As recognition of good performance IBBL won the following awards:

IBBL has been selected as the only Bank from Bangladesh in top 1000 banks in theworld by a UK based century old financial magazine, 'The Banker' published the list

in its July 2012 issue.

The institute of Chartered Accountants of Bangladesh (ICAB) awarded IBBL the firstprize of SARRC Anniversary Award for Corporate Governance.


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South Asian Federation of Accountants (SAFA) awarded IBBL as joint Winner in theCorporate Governance Disclosure Award-2010.

South Asian Federation of Accountants (SAFA) also awarded IBBL with Certificateof Merit in Banking Sector in the Annual Report for the year 2010.

The Institute of Cost and Management Accountants of Bangladesh (ICMAB),awarded IBBL as the ICMAB National Best Corporate Award-2007 (First Position,

Local Bank) and ICMAB Best Corporate Performance Award 2008 (Second

Position, Private Commercial Bank).

The Institute of Chartered Accountants of Bangladesh (ICAB) awarded IBBL with3rd position under the catergory-1, Banking in the best published accounts and

reports for the year 2010, the Certificate of Appreciation for the year 2001 & 2010

and Certificate of Merit for the year 2008.

The Global Finance, a reputed U.S.A. based quarterly Financial Magazine, awardedIBBL as the best Islamic Financial Institution of the country for the years 2008, 2009,

2010 & 2011. The Global Finance also awarded IBBL as the best bank of the country

for the year 1999, 2000, 2004 and 2005.

ICICI Bank, Hong Kong, awarded IBBL as The Quality Recognition Award-2009for U.S. Dollar Clearing (2009).

Bankers Forum awarded IBBL as the Best Bank for Corporate Social Responsibilityfor 2008 and 2009.

The Bank-BimaPatrika, a Fortnightly Magazine, awarded IBBL asthe Best Islami Banking Award 2007.

Exclusive economic weekly The Industry awarded IBBL as the Best Rated BankAward-2010

The Citi Bank NA awarded IBBL as the Largest Contributor in Foreign TradeOperations in Europe- Bangladesh corridor in 2009.

The UAE Exchange awarded IBBL for mobilizing around 30% of total foreignremittance of the country.

IBBL is committed to provide banking service that is purely based on Islamic Shariah,

transparent and efficient. We would like to express our heartfelt thanks and gratitude to


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Almighty Allah, our customers, patrons, shareholders, print & electronic media,

regulatory authorities and employees whose support and confidence has made us worthy

of these great recognitions by the experts like the Global Finance, the Institute of Cost

and Management Accountants of Bangladesh (ICMAB), the Institute of Chartered

Accountants of Bangladesh (ICAB), the Bank-BimaPatrika, the weekly Industry, The Citi

Bank NA and The UAE Exchange.

2.7 IBBL at a glance

Corporate Information (as on December 31, 2013)

Date of Incorporation 13th March 1983

Inauguration of 1st Branch (Local office,

Dhaka)

30th March 1983

Formal Inauguration 12th August 1983

Share of Capital

Local Shareholders 36.91%

Foreign Shareholders 63.09%

Authorized Capital Tk. 20,000.00 million

Paid-up Capital TK 12,509.64 Million

Deposits Tk. 417,844.14 Million

Investment (including Investment inShares)

Tk. 399,930.80 Million


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Foreign Exchange Business:

Import Tk. 284,587 Million

Export Tk. 197,095 Million

Remittance TK 300,915 Million

Branches

Total number of Branches 285

Number of AD Branches 45

Number ofATM Booth (Own) 300

Number of Shareholders 60,302,

Manpower 11,465
http://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Automated_teller_machine


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2.8 Organizational Structure


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2.9 Structure of Uttara Branch


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2.10 Board of Directors:


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2.11Management Committee:


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2.12 Sariah Supervisory Committee:


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Important Duties of the Shariah Board

As an expert source on Islamic Principles (Including Fatwas), the Board through arepresentative, usually the General Secretary of the Board, supervises the Shariah

compliance of all the transactions in the Bank.

To devote time and effort to devising more Shariah -compliant transactionalprocedures, templates and banking products that enable the Bank to adapt to market

trends while maintaining a high competitive edge in deposit procedures, investments,

and banking services. At the same time, the Board gives its opinion on proposed new

templates, and banking transactions.

Analyzing unprecedented situations that are not covered by fatwa, in the Bank'stransactional procedures or those reported by different departments, branches and

even the customers. This is to ensure Shariah compliance before the Bank develops

any new products or implements any new procedure.

Analyzing contracts and agreements concerning the Bank's transactions, as submittedby the Chairman of the Board of Directors or any department/branch within the bank

or requested by the Board itself so that Shariah compliance can be evaluated and

maintained.

Ensuring Shariah compliance in the implementation of all banking transactions andcorrecting any breaches.

Analyzing administrative decisions, issues and matters that require the Board'sapproval.

Supervising Shariah training programmes for the Bank's staff.Preparing an annual report in the Bank's balance sheet with respect to its Shariah

compliance. The Fatwa & Shariah Supervision Board submits a complete annual

report for the Board of Director, summarizing all the issues referred to the Board, as

well as its opinion on the Bank's transactional procedures.


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2.13 Products & Services

Deposit Products

Islami Bank Bangladesh Limited mobilizes deposits through different types of accounts.

Al-Wadeah AccountsMudaraba Accounts

Al-Wadeah Accounts Islami Bank Bangladesh Limited operates Al-wadeahCurrent Account on the principles of Al-wadeah. The Bank commits to refund

money deposited in these Accounts on the demand of customers. On the other

hand the Bank takes permission from customers that the Bank may utilize their

money. Customers may operate these Accounts as their desires. No profit is

disbursed in these Accounts and depositors do not bear any loss.

Mudaraba Accounts In the perspective of these Accounts the Bank is 'Mudarib'and customers are 'Shahib Al-Mal'. On behalf of depositors, the Bank invests their

deposited money and distributes minimum 65% of investment-income earned

through deployment of Mudaraba funds among Mudaraba depositors after the

closing of the year.

Al-Wadeah Current Account (AWCA)

Mudaraba Savings Account (MSA)

Mudaraba Term Deposit Account (MTDR)

Mudaraba Special Notice Account (MSNA)

Mudaraba Hajj Savings Account (MHSA)

Mudaraba Special Savings (Pension) Account (MSSA)

Mudaraba Savings Bond (MSB)

Mudaraba Monthly Profit Deposit Account (MMPDA)

MudarabaMuhor Savings Account (MMSA)

MudarabaWaqf Cash Deposit Account (MWCDA)

Mudaraba NRB Savings Bond (MNSB) Account

Mudaraba Foreign Currency Deposit Account (MFCD)

Students Mudaraba Savings Account (SMSA)

Mudaraba Farmers Savings Account (MFSA)
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Investment

The special feature of the Investment Policy of the Bank is to invest on the basis of

profit-loss sharing system in accordance with the tenets and principles of Islamic

Shari'ah. Earning of profit is not the only motive and objective of the Bank's Investment

Policy rather emphasis is given in attaining social goal and objective in creating

employment opportunities.

Following modes are used for investment:

BAI-MODES Bai-Murabaha Bai-Istijrar Bai-Muajjal Bai Salam Istisnaa Bai-As-Sarf

SHARE-MODES Mudaraba Musharaka

IJARA-MODES Hire Purchase Under ShirkatulMelkUnder consumer financing, the Bank finances to the individuals for meeting their

personal. family and household needs. The Bank has taken up various welfare oriented

investment Schemes

Investment Scheme Household Durables Scheme (HDS) Investment Scheme for Doctors (ISD) Transport Investment Scheme (TIS) Car Investment Scheme (CIS) Small Business Investment Scheme (SBIS) Micro Industries Investment Scheme (MIIS) Agricultural Implement Investment Scheme (AIIS)
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Real Estate Investment Program (REIP) Real Estate Investment (Commercial & Working Capital) Agricultural Investment of IBBL NRB (Non Resident Bangladeshi) Entrepreneurs Investment Scheme(NEIS) Women Entrepreneurs Investment Scheme (WEIS)

NRB(Non Resident Bangladeshi) Entrepreneurs ServicesFeatures

Remitance Card Investment Scheme for Foreign Expatriate Mudaraba NRB Saving Bond

SME Information

Islami Bank Bangladesh Limited has been working since 1983 in the view to establish a

welfare oriented Islami Banking system and also to ensure equity and justice in the field

of all economic activities, achieve balanced growth and equitable development through

diversified investment operations particularly in the priority sectors and less developed

areas of the country and to encourage socio-economic uplift and financial services to the

low income community, particularly in the rural areas. Since inception of the Bank, it has

been giving priority in financing SMEs.

Formation of SME Division The Board in its emergent meeting held on 02.11.2005

approved a memo bearing No. 2005/155 with the following resolution:

Resolved that the investment in Small Enterprise shall be made in accordance with the

terms and conditions contained in the Annexed Comprehensive Small Enterprise

Investment Policy and SME Division under Investment Wing shall be established with

necessary restructuring and duly manning with adequate officials as proposed.

In order to emphasize SME investment, to run its SME functions smoothly and to

strengthen the SME activities of the bank, it has created a separate Division namely

Small and Medium Enterprise Division in 2009.

Specialized SME Branches
http://www.islamibankbd.com/prodServices/inv_detail.php?inv_id=11http://www.islamibankbd.com/prodServices/inv_detail.php?inv_id=12http://www.islamibankbd.com/prodServices/inv_detail.php?inv_id=13http://www.islamibankbd.com/prodServices/inv_detail.php?inv_id=14http://www.islamibankbd.com/prodServices/inv_detail.php?inv_id=15http://www.islamibankbd.com/advservices/advSerRemitCard.phphttp://www.islamibankbd.com/prodServices/nrbInvScheme.phphttp://www.islamibankbd.com/prodServices/nrbSavingsBond.phphttp://www.islamibankbd.com/prodServices/nrbSavingsBond.phphttp://www.islamibankbd.com/prodServices/nrbInvScheme.phphttp://www.islamibankbd.com/advservices/advSerRemitCard.phphttp://www.islamibankbd.com/prodServices/inv_detail.php?inv_id=15http://www.islamibankbd.com/prodServices/inv_detail.php?inv_id=14http://www.islamibankbd.com/prodServices/inv_detail.php?inv_id=13http://www.islamibankbd.com/prodServices/inv_detail.php?inv_id=12http://www.islamibankbd.com/prodServices/inv_detail.php?inv_id=11


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As per guideline and regulation of Bangladesh Bank, the Board of Directors of the Bank

has selected a good number of SME prone areas, where Specialized SME/Agriculture

Branches are being opening in order to facilitate the potential entrepreneurs in accessing

to the finance from Shariah based banking sector. So far 30 nos. of such Specialized

SME Branches have been opened and more such Branches shall be opened at the SME

prone areas by order.

Locker Service

Our safe deposit locker service offered from select branches gives you a completely

secured facility for safekeeping of precious items, confidential documents and other

valuables.

Services

Personalised service

Facilities to access outside scheduled time

Parcel handling

Safe custody of goods and bonds/shares

Lockers available in various sizes. we.e. Small, Medium and Large.

Locker Service Available

Head Office Complex Branch

Farmgate Branch

New market Branch

Kawran Bazar Branch

Sylhet Branch

Rajshai Branch

Elephant Road

Cox's Bazar

Anderkilla Branch

Chiringa Branch

Gulshan Branch

Dhanmondi Branch

Uttara Branch

VIP Road Branch

Khulna Branch

Agrabad Branch

Chawkbazar

Mouchak

CDA Avenue Branch

Feni Branch


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Any Branch Banking Service

IBBL has introduced its Online Banking service since 2006. Being the largest in online

connectivity among all the branches we are capable of providing the better customer

service to our clints. Registration is required to get this service. For registration please

contact with your branch. It could be mentioned here that Online Banking does not refer

to internet Banking. It is basically ANY branch banking.

Services

Cash Deposit

Cash Withdraw

Fund Transfer

Account StatementBalance Inquiry

Investment Recovery

Transaction Limit

There will be no limit for Cash Deposit and Fund Transfer.

For Cash Withdrawal, transaction limit will be Tk.10,00,000 per day per account.

SMS Banking Service

IBBL SMS Banking IBBL has introduced its SMS banking service since 2008.

Registration is required. For registration please contact to your branch. SMS Facilities are

applicable only for our Online Branches.

Services

Mulitple Account Registration

International Push- Pull Facility

Account Balance (BAL )Mini Account Statement (STM)

Account Information (ACI)

SMS Format

IBB SERVICE PINA/C Serial


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Send to :6969 (for local clients) +8801714006969(for international clients)

Charges

Till now, no charges required except the normal sms service charge.

For more information please contact to your nearest branch or see the Rules and

regulation given overleaf of the SMS Banking Regitration Form.

ATM Service

IBBL has introduced its ATM Banking service since 2000. Being the largest in online

connectivity among the branches we are capable of providing the better customer service

to our clints.

Services

Cash Withdraw

Fund Transfer

Mini Account Statement

Balance Inquiry

Transaction Limit

For Cash Withdrawal maximum amount is Tk. 50,000 in a calendar date.

Charges

Tk.300 Yearly fees is applicable.

Islami Bank mCash at a glance

Islami Bank mCash is the Mobile Banking of Islami Bank Bangladesh Limited where the

customers of any mobile company take the 24 hours of mobile banking services from

anywhere of the country without going to any branches.

According to the Bangladesh Bank Circular DCMPS No-08 dated September 22, 2011,

the banking industry of Bangladesh has shown tremendous growth in volume and

complexity over the recent years.


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Despite making significant improvements in all the areas relating to financial viability,

profitability, innovation and competitiveness, there are concerns that banks have not been

able to include vast segment of the population, especially the underprivileged sections

and rural people into the fold of basic banking services.

On the other hand, rapid growth of mobile phone users and wider range of the coverage

of Mobile Network Operators (MNOs) has made their delivery channel an important tool

of the trade for extending banking services to the unbanked/banked population.

In order to ensure the access of unbanked people by taking advantage of countrywide

mobile network coverage, Bangladesh Bank given the permission to start the mobile

banking operation for adoption of the unbanked people who have mobile connection.

Now, Islami Bank Bangladesh Limited proudly starting the Mobile Financial Services

titled Islami Bank mCash which is the completely new addition to its existing

services.

SWIFT Service

Society for Worldwide Inter-Bank Financial Telecommunication (SWIFT) is a bank

owned co-operative serving the financial community worldwide. The SWIFT Transport

Network (STN) is a dedicated global network for secure communication between SWIFT

Customers.

SWIFT supports the financial data communication and processing needs of financial

institutions, through a range of financial messaging services and value-added processing,

as well as, access through the STN and interface and application software. In short

SWIFT is a pioneer in the automation of the global financial industries. Islami Bank

Bangladesh Limited has introduced this SWIFT alliance entry system firstly in October

1999 and introduced SWIFT alliance access in October 2001.

Services

Personalised service Facilities to access outside scheduled time Parcel handling


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Safe custody of goods and bonds/shares Lockers available in various sizes.we.e. Small, Medium and Large.

IBBL Call Center and Phone Banking

What is Phone Banking:

Phone Banking and Call Center is a modern banking service by which, clients can get 24

hours of service over any mobile/T&T phone without going to any branch and can avail

all sort of queries/ requests/ complaints about Islami Banking services.

Features:

An unique Banking service that driven by IslamiShariyah.

24 hours/day, 7days/week and 365 days/year banking facilities.Clients need not go to branches for availing services.Clients can avail services from all over the world with Bangladesh.Runs with latest technology to ensure highest standard of security.Customers can transact their money in different way by own self except cash

transaction.

Providing Automated services to the present and future clients from Bank.Customer can avail this service form any Mobile/PSTN provider.

Phone Banking Services:

Fund TransferCheck account BalanceCheck Mini StatementMobile RechargeUtilities Bill Payment Request for T-pin and Change


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IBBL Call Center Service:

Clients can get services about their queries, request and complaints from one centerSimplified and Modern banking transactionCheque book requisitionStop payment Request7 days notice inputStanding Instruction inputRestriction to accountQueries about different deposit schemesInquiries about profit rateDifferent Investment related informationSMS Banking/ we Banking/ Mobile Banking related information and servicesATM related queries/ request and complaints servicesForeign remittance related information and servicesDebit card/ Credit Card/ Remittance card information and servicesOnline Banking related information and services HRD related information and many more

Registration Procedures for Phone Banking Service:

There are two ways to Phone Banking Registration.

Clients can register to this service from their nearby IBBL BranchBy dialing 16259 or (+8802) 8331090 client can register to this service by our

Customer Care Agent

TPin Related Information:

After successful registration client will be provided a four digits secured TPIN

(Telephone personal Identification Number). This TPIN will provide sufficient security

for the client and will be needed for every operation all time. Thus this number has to be

preserved carefully and maintained with secrecy. Client can change TPIN anytime at will.


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Fund Transfer:

To make Fund Transfer more secured client will be provided an OTP (One TimePassword) which will be valid for only 30 minutes.

Daily fund transfer limit is BDT 20000 Only.Phone Banking Service Charges:

Mobile Recharge :Free A/C balance check: Free Mini-statement check:Free Fund Transfer:BDT 5.00/ Transaction

How Safe Phone Banking:

Phone banking is totally a safe and secured system where, client has been provided a 4

Digits Pin code that none but him can be disclosed. However, in case of fund transfer

client will receive another OTP (One Time Password) by SMS without what fund

transfer can not be done. Risks of cash transaction is reduced by this way.


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2.14 Corporate Governance

Corporate Governance policies and practices of IBBL are focused on ensuring proper

delegation, transparency and accountability in the organization as a whole. The bank is

structured and developed in line with the accepted Corporate Governance practices and

guidelines of Bangladesh Bank and the Bangladesh Securities and Exchange

Commissions (BSEC) notifications in this regard. While pursuing the interest of

Shareholders value addition, the bank has attached utmost importance in setting up of a

well-defined compliance oriented organization and business structure.

Board of Directors, Chairman and CEO:

The members of the Board of Directors of IBBL are appointed pursuant to the provision

of Companies Act 1994, Securities and Exchange Regulations and Memorandum &

Articles of Association of the Bank. The Guidelines of Bangladesh Bank is strictly

complied with in the formation of the Board. Independent Directors and Depositor

Directors are appointed by the Board as per regulatory requirement.

Audit Committee:

The Audit Committee is responsible to the Board of Directors. The duties of the Audit

Committee are clearly set forth in writing. The Company Secretary acts as the secretary

of the Committee. At least an independent director is required to fulfil the quorum of the

audit committee.

Ethics and Compliance:

The Bank pays close attention to the moral concerns in order to make the right ethical

decisions on a day to day basis over and above observing the law, one of the basic

professional requirements for the Bank. IBBL belives that upholding of critical interest to

the customers, employees, regulators alike to the Bank itself as secured, reliable and

efficient banking system is one of the pillars of economic stability of any country.


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Human Resources Development and Management:

In order to keep pace with the additional human resources requirement and to enhance the

employment opportunity in the country, periodic recruitment is done as per need of the

Bank. In the year 2012, total 1,152 employees wererecruited and after this recruitment

total number of employees of the Bank increased to 12,188 including 407 female officials

as on 31st December 2012 against 11,465 including 216 female officials as on 31st

December 2011.

IBBLs Human Resources Management always believes to look at the man behind the

machine because only an educated, talented and skilled employee can ensure the highest

yield from the machine and hence the Bank always strives to develop skills and

competencies at all levels of the employees.

Risk Management:

As per guidelines of Bangladesh Bank, The Risk Management Wing (RMW) has beenestablished in IBBL, which is responsible for identification and management of risks

faced by the Bank. The details of our internal and external risk management mechanism

is included in a separate section titled Risk Management of IBBL and steps have been

taken to manage risks.


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2.15 External Environment:

Political Factor:

Political interference by the leftist political parties claimed that various regulations withrespect to Foreign Banks would benefit only those Banks, which intend to make a quick

jump by providing high-profile corporate services, instead of those who wish to intensify

their rural operations. Left political parties also cautioned that foreign players could

increase their holding size in a particular Bank that would lead to an imbalance of power.

Unstable political situation and some unauthorized political influence in banking sector

have pushed this sector to a critical situation. Some big financial fraud incident happened

recently in banking sector and thus Bangladesh Bank has made some strict policy and

rules in Banking sector. Fall in share market and decrease of money supply in market

makes the interest rate very high for loan seekers. The inflation is also high. All this

factors are shaking the banking sector.

Social Factor:Before nationalization of the Banks, their control was in the hands of the private parties

and only big business houses and the effluent sections of the society gained benefits from

the Banking in India. Thus, adoption of the social development model in the Banking

Sector was necessary for speedy economic progress consistent with social justice in

democratic political system. Bankers were directed to help economically weaker sections

of the society and to provide needed finance to all the sectors of the economy with

flexible and liberal attitude.

Increase in the per capita income of the working class population of Bangladesh, enabled

individuals to purchase goods, which were far out of their reach earlier. It also

encouraged people to buy goods for their personal use and for their family. Today

societies have shifted towards nuclear family, resulting into the growing needs for home

consumer durables like washing machine, television, bike, car etc. This showed how we

as a society have moved from a socialist society to a consumerist society. Understanding

these changes and to use them as an opportunity Banks provided various types of loans to


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farmers, working women, professionals, education loan to the students, housing loans,

and consumer loans. Even customers life style, their behavior, and consumption patterns

have changed which acted as an opportunity as well as a threat for Banking Industry.

Technological Factor:Development in technology has encouraged the bankers to change the concept of Branch

Banking to Anywhere Banking. Information Technology (IT) usage remained a key

lever in the journey of Indian Banking Sector towards a competent, effective, responsive

and user-friendly financial system. Technology brought devices like automatic voice

recorders and currency accounting machines. Banks are also issuing smartcards or debit

cards also called as electronic purse.

Technological changes had forced bankers to adopt customer-based approach instead of

product-based approach. The Foreign Banks operating in India made the beginning with

respect to technology innovation and new Private Sector Banks aggressively started

proposing technology based services. However, Public Sector Banks has also moved

towards technology execution to prevent loss of market share.

2.16 Internal Environment

Corporate Culture

Organizational culture is considered as an essential component of business corporations

as it has the ability to bind organizational members together. The culture and values of

Islami Bank have been proved as a source of competitive advantage for the bank and are

acting as a key component to establish the relationship between the bank and employees

and , in turn , between employees and customers.Islami Bank has also been able to improve organizational performance via improving the

performance of individual contributors and also recognizes existing talents to fill up the

higher vacancies within the organization or place them in the right position, wherein the

best use of their abilities can be ensured. Islami Banks culture promotes sharing of

common goal which ensures harmonious relationship in the working environment.


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Corporate Resources of Islami Bank

Marketing Finance HRM Information Technology Research and Development

2.17 Corporate Communication and Business Promotion

Public Relations:

Public Relations is an immense need for reputation of any organization. Branding creates

an image and a perception that capture the mind of the customers and hereby it isessential for all products. IBBL has moved forward with the visionary image of

conveying the message of excellent service in the heart of the people. Public Relations

Department in IBBL was created mainly to fulfill this purpose. Since its inception, the

Department has been involved in many successful ventures that helped to create a new

image and positive perception among our valued clients.

Media Coverage:

Media coverage for the Bank has visibly increased in the year. IBBL was in the leading

position regarding coverage of news in print and electronic media along with web based

news sites. Each month, the Bank got an average of 3325 column inches coverage on

various events in the national dailies and weeklies. News of all the important programs of

the Bank are being published in almost all the recognized newspapers. Besides, articles

and features on Islamic Banking prospects and IBBL products along with our top

managements interviews were published in reputed Dailies. Globally renowned Gulf

News and Reuters interviewed the Banks Managing Director. Almost every leading

news paper of the country published the Gulf News interview.


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Advertisement:

Advertisements of various types and length were published in print & electronic media

round the year. Around 113 official advertisements including financial statement, balance

sheet, AGM notice, tender and recruitment notice; and 162 promotional advertisements

like branch opening and ATM, months long campaign programs, product advertisement

and on occasions of newspapers & TV channels founding anniversary were publicized.

About 486 issues of different magazine, periodicals, and souvenirs published our

advertisements on different products and themes. Design of different Advertisement of

the Bank was improved.


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Sponsorship & Participation:

The Bank earned huge publicity in the year 2012 sponsoring the National School Football

Islami Bank Tournament, an event unprecedented in the countrys grass root sport

history. About 5,000 school teams comprising one lakh students from all over the country

participated in the tournament held in 480 upazilas. Positive image of the Bank was

created among the schoolmen, parents andsport enthusiasts. During the year, the Bank

sponsored East Zone Team in the first time franchisee-based longer version national

cricket tournament namely Bangladesh Cricket League.


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Other Publicity:

The Bank continued road side publicity withbillboards at Banglamotor, Ruposhi Bangla

point, Gulishthan, Bangabhavan gate, Matijheel Shapla Chattar and Bijoy Sarani. Digital

board displays were arranged on the occasion of differentnational programs and fairs.

The Bank sponsored Kamalapur to Rajarbag road-median beautification program by

color showy and herbal plants. A number of quality documentaries were made on

theBanks performance and its CSR activities were displayed on rious Bank programs

across the country.

Public & Media Relations:

During the year the Bank devised a slogan Sholo Koti Manusher Kache Jai, Amader

Desh Amra Sajai and observed two multi purpose campaign programs namely Setu-

bandhoner 100 Din & Antorik Sebar 3 mas. A number of public programs including

discussion seminar, clients meeting, NRB get together, peoples representative & eliteassembly, Shari`ah conscious meeting, professionals assembly, entrepreneur

development program etc. were organized across all the branches on the occasion.

Through these programs, the Bank was able to fulfill its aim of proving itself as a

transparent, accountable and benevolent financial entity in this country. The Bank also

arranged reception program for Bangladesh Cricket Board President Mr. AHM Mostafa


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Kamal MP for assuming his responsibilities as ICC Vice President. With a view to

consolide good relations with the media, a good number of bilateral and person-to-person

meetings between\ the top management of the Bank with Editors, Senior Journalists and

Reporters from prominent print and electronic media were arranged.

Publications:

Publications of the Bank increased remarkably in 2012 in addition to witnessing

qualitative change. All the publications were updated in standard form. Publications of

periodicals were regularized. Five books, booklets and manuals were published in the

year including Islamic Banking in Bangladesh: An Alternative Paradigm for Sustainable

Socioeconomic Development and updated `Islami Bank: 30 Years of Progress. Four

issues each for Islami Bank house-magazine Porikroma and RDS magazine Palli

Unnayon Barta were published. Twelve folders were published in modified version and

these were also reprinted.

2.18 Corporate Social Responsibility:

Corporate Social Responsibility (CSR) is a form of corporate self-regulation integrated

into a business model. CSR policy functions as a built-in, self-regulating mechanism

whereby a business monitors and ensures its active compliance with the spirit of the law,

ethical standards, and international norms. CSR is a process that aims to embrace

responsibility for the companys actions and create a positive impact through its activities

on the environment, consumers, employees, communities, stakeholders and all other

members of the public. For entrancing social face of Islamic Banking Islami Bank

Bangladesh Limited has been involved in charitable activities since its inception through

creation of Sadaqah Tahbil.Thereafter, the same has been done through Islami Bank

Foundation (IBF) converting the Sadaqah Tahbil into a full-fledged foundation on May

20, 1991. To comply with the instruction of the Central Bank, IBBL has started doing the

said CSR through creation of Corporate Social Responsibility Division (CSRD) at Head

Office since 16th July 2009. CSR of Islami Bank Bangladesh Ltd.


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Responsibility to the Shareholders Responsibility to the Employees Responsibility to the Customers Responsibility to the Suppliers Responsibility to the Community

Sector-wise CSR Expenditure for the year 2012:


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IBBL Chairman is handing over Winter Cloths to Prime Minister Sheikh Hasina

for Prime Ministers Relief Fund


45/98


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3.0 Definition of Remittance:

The process of sending money to remove an obligation. This is most often done through

an electronic network, wire transfer or mail. The term also refers to the amount of money

being sent to remove the obligation. This bank is authorized to deal in foreign exchange

business. As an authorized dealer, a bank must provide some services to the clients

regarding foreign exchange and this department provides these services. Remittance

procedures of foreign currency.

There are two types of remittance:

1. Foreign Outward Remittance: The sending country, where the wage earner is located.

The sender uses a bank or foreign exchange company to send money to foreign country.

Many of the receiving banks have established remittance relationships with currency

houses and banks in other countries to better facilitate the flow of remittances into the

country.

2. Foreign Inward Remittance: The receiving country, where the beneficiary resides. The

bank receives the money that has been sent from the sending person in the country in

which the money has been earned.

Exchange House ArrangementBank has established remittance arrangement with 114 Exchange Houses in 17 countries

of the world for facilitating remittance services. IBBL as a member of Bangladesh

Electronic Funds Transfer Network (BEFTN) is routing 90% of its 3rd bankremittance by

using BEFTN.


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3.1 Activities of this Department

Issuance of TC, Cash Dollar/Pound

Issuance of FDD,FTT& purchasing, payment of the same Passport endorsement Encashment Certificate F/C Account opening & filing Opening of Export FC Retention Quota A/C & maintain Maintenance of ledger of Cash Dollar, FC Deposit A/C & TC Maintain FBC register & follow up FBC Opening of Student file & maintain Preparation of all related statement, Voucher & posting Preparation of Weekly, Monthly, Yearly Statement for Bangladesh Bank returns

timely.


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3.2 Medium of Remittance:

The remittance process involves the following four modes:

Cash Remittance Dollar/pound

Sell Bank sells Dollar/pound for using in abroadby the purchaser. The maximum amount of

such sell is mentioned in the Bangladesh

Bank publication of Convertibility of Taka

for Currency Transactions in Bangladesh.

Purchase Bank can purchase dollar from resident and

non-resident Bangladeshi and Foreigner.

Most dollars comes from realization of

Export Bill of Exchange.

Travelers Cheque (TC) Issue of TC TC is useful to traveler abroad. Customers

can incash the TC in abroad from the

drawee bank. TC is alternative to holding

cash and it provides better security than

holding cash in hand.

Buying of

TC

If any unused leaf of TC is surrendered bank

buys it from the customer. All payments are

made in local currency. Banks generally buy

only those TC.

Telex Transfer Outward

TT

It remits fund by tested TT via its foreign

correspondence bank in which it is

maintaining its NOSTRO Account.

Incoming

TT

It also makes payment according to

telegraphic message of its foreign

correspondence bank from the


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corresponding VOSTRO Account.

Foreign Demand

Draft

Bank issue Demand Draft in favor of purchaser or any

other according to instruction of purchaser. The payee can

collect it for the drawee bank in which the Issuing bank of

Demand Draft holds its NOSTRO Account.

3.3 The process of remittance, bank must have to make profit as a

business institution. Profit is made in two ways:

1. Commission Charge

2. Difference in the buying and selling rate.

Remittance of profits:

Branches of foreign firms/companies including foreign banks, insurance companies and

financial institutions are free to remit their post-tax profits to their head offices through

banks authorized to deal in foreign exchange (Authorized Dealers) without prior approval

of Bangladesh Bank.

Remittance of dividend/capital gain:

Prior permission of Bangladesh Bank is not required for remittance of dividend income to

non-residents in respect to their investments in Bangladesh; remittance of dividend

declared out of previous year's accumulated reserves; and dividend and sale proceeds

(including capital gains) of shares of companies listed in a Stock Exchange in

Bangladesh. Such remittance may be affected prior to actual payment of taxes provided

that the amount payable to the tax authorities at the applicable tax rate is withheld by the

company. Remittance of sale proceeds of shares of companies not listed in Stock

Exchange requires prior Bangladesh Bank permission, which is accorded for amounts not

exceeding the net asset values of the shares.

Remittance of salaries and savings by expatriates:

Expatriates working in Bangladesh with the approval of the Government may remit


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3.4 Forms Remittance

a) Inward Remittance

b) Outward Remittance

As our concern is about Inward foreign Remittance, we will now only know about

Inward foreign Remittance.

Mainly the earnings of our brother working abroad termed as Inward Foreign Remittance.

Inward remittances are considered the sum of workers remittances, compensation of

employees, and migrants transfers. Workers remittances refer to transfers in cash or in

kind from migrants to resident households in the countries of origin. Usually these are

ongoing transfers between members of the same family, with persons abroad being

absent for a year or longer. Compensation to employees refers to the wages, salaries, andother remuneration, in cash or in kind, paid to individuals who work in a country other

than where they legally reside

Initiatives Taken by IBBL to Foster Inward Foreign Remittance:

Nothing comes without anything. There have huge sacrifice, plan and dynamism to be in

this successful position of IBBL. IBBL has dedicated and honest work force . Now lets

have a on initiatives taken by IBBL.

SpotCash:

To provide quick payment of foreign remittance IBBL has made integrated software

named spot cash. IBBL is the most technologically update modern Bank and all of its

branches are in the coverage of online. So, by this integrated software IBBL can easily

and smoothly give payment of foreign remittance. Affiliation with Almost All of the

Currency Bearer Houses:

IBBL has affiliation with almost all of the companies and houses that bears currency. So

it can give payment from all countries. Here are list of some of this affiliates:

Western Union Money Gram Xpress Money of U IME


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AE exchange Prabha Merchant Trade EzRemit of Bahrain exchange Habib Express of HabibQater International exchange Company May back Turbo Cash of Zenj exchange NBL Quick Pay Cash Express of Al Ansari exchange Est. Ceylinco Fast Cash of Seylon Bank Ltd Remit Master

And some other houses E-Mail based SpotCash:

E-Mail based SpotCash Arrangements with 33 (thirty three) Banks / ExchangeHouse s.

3.5 Remittance Card Service

Islami Bank Bangladesh Limited has introduced Islami Bank Remittance Card to

send money from abroad. This card ensures the Non Residence Bangladeshi of safe and

quick hassle free money transfer to their family.

Benefits

24 Hours Service. Can be received this card from any IBBL branch without any fee. Draw money from any IBBL booth. Card Balance Inquiry from any IBBL booth. Foreign Remittance is deposited in this card. Bank account is not necessary Maximum Tk. 50,000.00 from ATM booth and any number of amount from bank

counter can be drawn.

Only foreign remittance sender / receiver can take this service of Remittance Card. Utility Bill can be paid by Remittance Card.


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Balance inquery from SMS or iBanking Service.Transaction Limit

For Cash Withdrawal from ATM booth maximum amount is Tk. 50,000 in acalendar date.

Any number of amount from bank counter.Charges

No charges is applicable.


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Chapter Four

Customer Satisfaction Basedon Theoretical Aspect


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4.0 Introduction

Superior service quality is widely acknowledged as a driver of perceived value, which, in

turn, will enhance customer loyalty (Parasuraman and Grewal, 2000) and improve the

providers image, sales and profitability (Buzzell and Gale, 1987; Gummesson, 1993).

Because satisfaction is basically a psychological state, care should be taken in the effort

of quantitative measurement, although a large quantity of research in this area has

recently been developed. Work done by Berry, Brodeur between 1990 and 1998 defined

ten 'Quality Values' which influence satisfaction behavior, further expanded by Berry in

2002 and known as the ten domains of satisfaction. These ten domains of satisfaction

include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment,

Interdepartmental Teamwork, Front line Service Behaviors, Commitment to theCustomer and Innovation. These factors are emphasized for continuous improvement and

organizational change measurement and are most often utilized to develop the

architecture for satisfaction measurement as an integrated model. Work done by

Parasuraman, Zeithaml and Berry between 1985 and 1988 provides the basis for the

measurement of customer satisfaction with a service by using the gap between the

customer's expectation of performance and their perceived experience of performance.

This provides the measurer with a satisfaction "gap" which is objective and quantitative

in nature. Work done by Cronin and Taylor propose the "confirmation/disconfirmation"

theory of combining the "gap" described by Parasuraman, Zeithaml and Berry as two

different measures (perception and expectation of performance) into a

single measurement of performance according to expectation. According to Garbrand,

customer satisfaction equals perception of performance divided by expectation of

performance.


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4.1 Definition of Customer

The word derives from "custom," meaning "habit"; a customer was someone who

frequented aparticular shop, who made it a habit to purchase goods of the sort the shop

sold there rather than elsewhere, and with whom the shopkeeper had to maintain a

relationship to keep his or her "custom," meaning expected purchases in the future. A

customer, also called client, buyer, or purchaser, is usually used to refer to a current or

potential buyer or user of the products of an

individual or organization, called the supplier, seller, or vendor. This is typically through

purchasing or renting goods or services. The word customer has neither been defined

by the Negotiable Instrument nor by any other law. Therefore, in the field of banking it is

not cleared yet. According to Paget, the following characteristics will be present:a. There must be recognizable course or habit of dealing between the customer and a

bank.

b. Dealing between him and the bank must be in the nature of regular banking business.

Zairi (2000) said, Customers are the purpose of what we do and rather than them

depending on us, we very much depend on them. The customer is not the source of a

problem, we shouldnt perhaps make a wish that customers should go away because our

future and our security will be put in jeopardy

4.2 Definition of Satisfaction

Satisfaction is the contentment one feels when one has fulfilled a desire, need, or

expectation; "the chef tasted the sauce with great satisfaction". Here in the study

customers agreement (agree & strongly agree) with the surveys statements will indicate

their satisfaction.

According to Hansemark and Albinsson (2004), satisfaction is an overall customer

attitude towards a service provider, or an emotional reaction to the difference between

what customers anticipate and what they receive, regarding the fulfillment of some need,

goal or desire.


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4.3 Definition of Customer satisfaction

Customer satisfaction, a term frequently used in marketing, is a measure of how

products and services supplied by a company meet or surpass customer expectation.

Customer satisfaction is defined as "the number of customers, or percentage of total

customers, whose reported experience with a firm, its products, or its services (ratings)

exceeds specified satisfaction goals.

Philip Kotler (2000) defined satisfaction as: a persons feelings of pleasure or

disappointment resulting from comparing a product are perceived performance (or

outcome) in relation to his or her expectations.

Hoyer and MacInnis (2001) said that satisfaction could be associated with feelings of

acceptance, happiness, relief, excitement, and delight. It is seen as a key performanceindicator within business and is often part of a Balanced Scorecard. In a competitive

marketplace where businesses compete for customers, customer satisfaction is seen as a

key differentiator and increasingly has become a key element of business strategy.

4.4 Shariah - Basis of Customers' Satisfaction

When competition intensifies, Islamic financial institutions start to offer more or less

similar products and services. There is no doubt that the customers perception of

satisfactory service provided by the CSA (Customer Support Advisors) will influence the

performance of an Islamic financial institution and determine its competitiveness and

success. Therefore, the need to be customer-focused in the rapidly changing marketing

environment has never been more important for Islamic banks and financial services than

now. However, under the present circumstances, when customers are becoming more

demanding and increasingly mobile between competing financial providers, being

customer-oriented is not enough. Islamic financial institution and more specifically theircontact employees (CSRs) need to be perceived by their customers as ethically Islamic.

Islamic financial institutions should offer a complete range of Shari'ahbased products and

services. Moreover, Islamic financial institutions should aim to satisfy their customers by

letting them choose what is most suitable for them in line with Shari'ah.


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Ethical sales behavior on customer satisfaction

4.5 Sales Behavior Model Based on Islamic Business Ethics

Islamic ethical sales behavior, as perceived by the customers, is proposed to directly

influence level of customer satisfaction by core service (H1) to high level of satisfaction

(H2) as well as loyalty (H4) to Islamic financial institutions or banks. As for the indirect

effects, it is suggested that the customers satisfaction with core service (H1) influences

the satisfaction of customers loyalty (H4) level to Islamic banks. These two variables, in

turn, lead to customers trust (H3). Finally, customers trust (H3) directly influences the

increase of customers loyalty (H4) to Islamic banks. Details are explained in the

following:

4.5.1 Customer Satisfaction with the Core Service (H1)

The customer satisfaction with CSAs increased when the customer felt the advisor had

been fair in the transaction something, which is associated with Islamic ethical sales

behaviour. The figure 1 shows that the perceived ethical standard of CSAs had a positive

impact on customer satisfaction. In some service settings, discriminate validity between


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satisfaction with the CSA and the Islamic financial institution should not be necessarily

expected. Taking this matter into account, we some times see that in a service context the

CSA and the selling Islamic financial institution or banks products are often

indistinguishable in the mind of the customer. Hence, a positive association exist between

core service and level of customer satisfaction with an Islamic financial institution.

4.5.2 High Level Customer Satisfaction (H2) Leads to Trust (H3) and

Loyalt y (H4)

Research in services marketing has widely shown that customer satisfaction leads to

customer loyalty. For instance, in the mainstream literate on marketing, there are many

examples that whether customers had replaced their insurance policies or allowed them to

lapse depended on their prior satisfaction with the whole life coverage. Similarly, the

core-service satisfaction is positively associated with repurchase intentions. Furthermore,

customer satisfaction with Islamic financial institutions has a significant and positive

effect on loyalty. A few literature on customers of Islamic financial service industries

provide evidence of the positive influence of customer satisfaction both with the Islamic

financial institution as service provider and the core service on customer intention to use

the facilitys services again, and recommend the service to a friend.

4.5.3 Customer Trust (H3) to Islamic Banks

Customers trust relates to a belief on the part of customers that the obligations of Islamic

financial institutions are fulfilled. In other words, the customers believe and feel that a

CSA of an Islamic financial institution selling products can be relied upon to behave in

such a manner that the longterm interest of the customers will be served. Therefore, trust

in an Islamic financial institution may be defined as customer confidence in the quality

and reliability of the services offered by the Islamic financial institution. This

conceptualisation of trust corresponds to the concept of post-trust that derived from the

principles of muamelat based on Islamic business ethics. Service employees (such as

CSAs) with whom the customers interact, confirm and build trust in the Islamic financial


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institution or detract from its reputation and ultimately destroy trust. Figure 1 suggest that

Islamic ethical sales practices, as perceived by Islamic financial service customers have

increased customers trust (H3) in CSAs.

4.5.4 Customer Loyalty (H4) to Islamic Bank

An important consideration in a service financial institutions customer base is the degree

to which its customers are loyal. Based on the principles of Islamic marketing ethics,

customers loyalty to Islamic financial institutions is conceptualised as a combination of a

customers intention to maintain an ongoing relationship with Islamic financial

institutions, and their willingness to recommend Islamic financial institutions to other

consumers. Customers perceptions of face-to-face interaction with CSAs have

traditionally been considered one of the most important determinants for loyalty.


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4.6 Factors affecting customer satisfaction

Many factors affect customer satisfaction. According to Hokanson (1995), these factors

include friendly employees, courteous employees, knowledgeable employees, helpful

employees, accuracy of billing, billing timeliness, competitive pricing, service quality,

good value, billing clarity and quick service. This is shown in Figure below-

Factors that Affect Customer Satisfaction

4.7 Customer Satisfaction in seven steps

Its a well knownfact that no business can exist without customers. Therefore, a business

can go long run when its customer get value from the organization & if they are satisfied.

An organization make its customers satisfied if follow seven (7) steps:

1. Encourage Face-to-Face Dealings

2. Respond to Messages Promptly & Keep Your Clients Informed

3. Be Friendly and Approachable

4. Have a Clearly-Defined Customer Service Policy

5. Attention to Detail (also known as The Little Niceties)


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Chapter Five

Performance Analysis


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5.0 IBBLs world rating

Islami Bank Bangladesh Limited, the largest private bank of Bangladesh placed among

Top 1000 World Banks 2012 list.UKbased century old financial magazine The

Bankerpublished this list analyzing in depth-data & industrys performance.

The Bankers Top 1000 World Banks ranking has been setting the industry benchmark

since 1970, providing comprehensive intelligence about the health and wealth of the

banking sector.

Alongside strong global banks of the developed and emerging countries, Islami Bank

positioned in the list as the lone financialinstitution of Bangladesh.

Inclusion of Islami Bank in the prestigious club of best 1000 is tantamount of globalrecognition of overall development of Bangladesh Banking Sector.

Now IBBL is the number one Private Commercial Bank in Bangladesh.

As per Bankers' Almanac (January 2001 edition) published by the Reed Business

Information, Windsor Court, England, IBBL's world Rank is 1771 among 3000 banks

selected by them. This position was 1902 among 4500 selected banks as on January 1999

edition. IBBL's country Rank is 5 among 39 banks as per ratings made by the above

Almanac on the basis of IBBL's Financial Statements of the year 2001.

5.1 Recognition par Excellence

The Banker:

IBBL is the only Bangladeshi Bank that has entered into the Worlds Top 1000 Banks

List2012. IBBL has made Bangladesh proudof being among the best 1000 banks in the

world, ranked by The Banker, the UKspremier financial magazine. This prestigiousranking is a clear testimony of IBBLs stability and strength, and its leadership in

financialsector of Bangladesh.

IBBL has been ranked 17th in the performance category (assessed by profits on capital),

70th

in Return on Asset (ROA), 660th in Soundness (assessed on Capital Assets Ratio),

868th in Size (assessed on Assets) and 1000th in Tier-1 capital. The last criterion is
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5.2 Current Performance

Ialami Bank Bangladesh Ltd. could successfully encounter all ads volatile to remain

focused on its course of delivery strong growth in deposit, advantages core banking

business. Bank ensure proper liability management, high standard of credit risk

management while pursuing increase in business. During the period of last 3 years,


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Figure 2-2: Market Share Remittance of IBBL

Import, Export & Remittance Performance:

Sector 2012 mill

Tk

2011

million Tk

2010

million Tk

2009

million Tk

2008

million Tk

Import 284,588 301,207 246,281 161,230 168,329

Export 197,095 178,244 148,421 106,424 93,962

Remittance 300,915 236,607 214,629 194,716 140,168

Table 2-5: Import, Export & Remittance Performance


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Figure: 2-5: Import, Export & Remittance Performance of IBBL

2.5.5.3 Net Profit after Tax

Table 2-8: Net Profit after Tax

Year 2012 2011 2010 2009 2008

TK in Million 5,524 4,841 4,463 3,404 2,675

Figure 2-8: Net Profit after Tax of IBBL


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Market value Per Share (Highest Taka)

Table 2-9 Market values Per Share (Highest Taka)

Figure 2-9: Market Value Per Share of IBBL

Year 2012 2011 2010 2009 2008

Highest Taka 59.00 83.98 90.00 89.00 83.00


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Chapter Six

Actual Task Part


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6.0 Actual Task:

Our internship experience at Islami Bank Bangladesh Ltd. started in the Uttara Branch,

located at sector 3 Uttara beside rajlaxmi shopping complex which is a popular,

sophisticated, spacious and quiet branch. The most attracting thing of the branch is the

state-of-the-art interior design and space of the bank premise.

6.1 Job at Remittance and Accounts section:

Job Responsibilities: -Job responsibilities at accounts and remittance were short

because of the work sensitivity.

Giving the remittance service through designated file paths in online when theofficer was unavailable. Though the authorizing limit was very low

Registering day to day pay slip into register and excel template Checking the debit and credit entry in number and amount from audit trail to

general accounts sheet and put on the voucher register.

Calculating daily entries and position of demand deposits, time deposits, loans-advances and schemes

6.2 Specific Responsibilities of Job:

The duties and responsibilities, We had to perform in the bank are given below:

Before joining in the branch, having an eight days training in the Islami BankTraining and Research Academy.

After joining in the branch, performing any kind of duties that is ordered by themanager and the senior principal officer.

Explaining different massage and issues to the supervisor. Additionally, sitting in the Account Opening desk to help the customers to open

an account.


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Besides, being in the cash counter. Solving different problems of computers. Typing different papers Checking different e-mails. Entering data in the computer. Reading different books of Islami Bank Training and Research Academy. Putting seal in different papers.

6.3 Different Aspects of Job Performance:

Before joining in the branch, We have an eight days training in the Islami Bank Training

and Research Academy and after conducting the training, We have to participate in an

examination. We have scored good marks on the examination. When We join in the

branch, we have to perform different duties that were ordered by the manager and the

senior principal officer and they are very pleased on our performance. WE have to

explain different massage and issues to the supervisor. In addition, we sat in the Account

Opening desk to help the customers to open an account. There we have to write the forms

and give information about what is required to open the account. Besides, we were in the

cash counter to collect cash from the customers. We also solve different problems of

computers. Moreover, we typed different papers of agreements of loan and investment.

We also check different e-mails o