Internship Report On

An Analysis of Financial Activities of Al-Arafah Islami Bank Ltd.

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Student Declaration

I do hereby solemnly declare that the work presented in this internship report submitted to the department of Business Administration of Bangladesh Islami University !haka for the partial fulfillment of the re"uirement for the !egree of Bachelor of Business Administration BBA. It is a record of original and independent research work done by me under the supervision of #d.Asraful Islam Assistant $rofessor has been carried %ut by me and has not been previously submitted to any other University &college &organi'ation for an academic (ualification&certificate&diploma or degree.

)he work I have presented does not breach any e*isting copyright and no portion of this report is copied from any work done earlier for a degree or otherwise.

Md. Abdullah Al Mamun !epartment of Business Administration

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Official Certification
)his is to certify that the Internship report on An Analysis Financial Activities ofAlArafah Islami Bank Ltd. #irpur Branch. )he report is done by #d. Abdullah Al #amun as a partial fulfillment of the re"uirement of Bachelor of Business Administration +BBA, degree from the !epartment of Business Administration. )he report is accepted in terms of "uality and form.

..

-ommittee chairman

Md. Ashraful Islam Assistant $rofessor of I) !ept. of Business Administration

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Acknowledgement
I must take this opportunity to thank #d. .e'ul /o"ue +.e'a, #anager and #d. 0hsanullah Assistant #anager of AI ! Mirpur ranch for giving me the opportunity to complete my internship in such a reputed organi'ation. I am very much grateful to my honorable teacher #d. Ashraful Islam for assigning me to prepare this report. /e has guided me in coordinating the whole report. /e has taken time to check the report and given his suggestion on different chapters of the report. 1ithout his help it would have been difficult to prepare the report. I also e*press special gratitude to #r. )are" officer AIBL 2ew 0lephant .oad Branch who has supervised me to learn about overall banking system of Al-Arafah Islami Bank Limited Mirpur ranch. /e also helped me a lot by providing necessary information that re"uired for this report. I gratefully acknowledge #r. 2a'rul #r. #i'anur .ahman #r. Lotfur and #r. Fai'ur for the help and guidance of all the officer of Al- Arafah Islami Bank Limited Mirpur ranch #y heartful thanks and gratitude for all those departmental members whom I did complete my courses and who have given the valuable knowledge that help me in the practical life. Finally I would show my humble gratitude to all he individuals who have helped me to prepare this report. It is "uite natural to forget few names. I would like to apologi'e for that.

+#d. Abdullah Al #amun,

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"#ecuti$e Summar%
)his report on An Analysis of Financial Activity of 3Al-Arafah Islami Bank Ltd.#irpur Branch. %f AIBL #irpur Branch4 is the part of the internship program. )he internship program on this topic is done under the supervision of #d. Ashraful Islam Assistant $rofessor of I) Bangladesh Islami University. )his report covers the overall performances that are general banking -redit management 5 investment of Al-Arafah Islami Bank Limited. )he source data is mainly secondary which was collected from monthly and daily reports of AIBL #irpur Branch. )he primary data collected from interviewing different personnel of AL-Arafah Islami Bank Limited. )he report contains some statistical tools which will help us to find different ratios and trends which indicate the present condition of the bank and also the condition of #irpur Branch. !ifferent types of accounts and its operations loans and its collection method duration and policy has been found through this report. )he overall banking activity has been monitored closely through the duration of the internship period.

)he internship report is divided into three parts. First part is organi'ation part second one is pro6ect part and last part is concluding part. )he organi'ation part discusses the inception history management and structure Financial Activities deposit performance etc. )he pro6ect part describes Financial Activities general banking performance credit performance and foreign e*change affairs. )he concluding part includes the findings and recommendations. )his report is showing all the operational performance of Al-Arafah Islami Bank Limited #irpur Branch.

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&able and content

Chapter'( Introduction
7.7 Introduction8888888888..88888888888888888889 7.9 origin of the .eport8888888.8888888888888888888: 7.: %b6ective of the .eport888888888888888888888888..: 7.; <cope of the .eport8888888.8888...88888888888.88...; 7.= #ethodology of the .eport8888.888888888...888888888; 7.> )ime schedule8888888888..88888888...888888888.= 7.? Limitations of the .eport88888.888888888...88888888...=

Chapter )' Organi*ational

9.7 /istorical Background of AIBL88888.888888888888.8888? 9.9 %b6ective of AIBL88888888888888888888.888.8888@ 9.: <pecial feature of the Bank8888.88888888888.8888888..@ 9.; Financial Information about ABIL8888888888888.888888...A 9.= #ission of AIBL8888888888.8888888888.8888888..A 9.> Bision of AIBL888888888888.8888888888888.888A 9.? !istribution of Branches8888888..8888888888888.888.7C 9.@ AIBL branch set up88888888888888888888888.888.77 9.A %rgan gram of Al Arafah Islami Bank Ltd88888.88.888.88888..79 9.7C Financial $erformance of Bank8888.888888888888.88887: 9.77 $erformance of total deposit88888..8888888888888.8887: 9.79 .ole of AIBL in the 0conomic developme.nt of Bank88888888888.7;

Chapter +' !earning Re$iew of AI !

:.7 #eaning of Islamic Banking 888888888888888888..8.8.8..7> :.9 Islamic Banking #ovement )hroughout the world888888888 . 888.7> :.: %b6ective of Islamic Bank888888888.88888888888.888..7? :.; !istinguishing Features of Islamic Bank88.88888888888.8.......87@ :.= 2ature of Business8888888888888...888888888.8888.7@ :.> An %verview of AIBL #irpur Branch888888.88888888.8888..7A :.? .isk #anagement88888888888888888888888.8888..99 :.@ -redit .isk #anagement 88888888888888..88888..8888.9: :.A Investment 88888888888888888888888..88.888889: :.7C Foreign 0*change .isk #anagement8888888888888.88888.9; :.77 )ypes of Islamic Banking -ontacts88888888888888.8.88889=

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Chapter ,' -eneral anking Operation of Al Arafa Islamic ank

;.7 Deneral Banking Activities 888888888888..88888.88.88..9? ;.9 )o %pen new account88888888888888..8888.88.8.8889A ;.: Account %pening $rocedures in a flow chart 88888..888888.8...89A ;.; Account %pening -riteria 8888888888888..888888.888.:C ;.= 0"uipment of 2ew Account 888888888888..8888.88..888.:C ;.> Deneral -haracteristics of !eposit Account 888888..888.8.8888:9 ;.? $erformance in case of total investment ..8888888..88.888888..:? ;.@ Darnean 5 <mall investment scheme ...88888888..88.8888.88.:@ ;.A <1%) Analysis of AIBL8888.8888888888..88.8888888.:A .

Chapter .' Conclusion

=.7 -onclusion8888888888.8888888888..888888888..;9 =.9 .ecommendation of AIBL8888.8888888888..888888.88...;: =.: Bibliography 888888888.88888888888..88888..88...;; =.; Appendi* 8888888888.88.88..88.88888888..88888;=

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Chapter-1

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Introduction

(.(. Introduction
Bangladesh is on of the largest #uslim countries in the world. )he people of this country are deeply committed to lead an Islamic way of life which is based on the principle of /oly (uran and the <unnah. )he Al-Arafah Islami Bank which is established on 6une 7@ 7AA= is the true reflection of this inner urge of its people which started functioning with effect from <eptember 9? 7AA=. It is committed to conduct all Financial Activities banking and Investment activities on the basis of interest free profit and loss sharing system. In doing so it has unveiled a new hori'on and unhered in a new silver lining of hope towards materiali'ing a long cherished dream of the people Bangladesh for doing their Banking transaction in line with what is prescribed by Islam. 1ith the active cooperation and participation of Islamic !evelopment Bank +I!B, and some other Islamic Banks financial institutions and government bodies Al-Arafah Islami Bank Limited has new earned the uni"ue position of a leading private commercial bank in Bangladesh. Al-Arafah Islami Bank Limited has made a positive contribution towards the socio economic development of the country by opening ;> branches in which 7> authori'ed dealer throughout the country. )he e"uity of the bank stood at )k. 7>AC #illion -r. as on :7 !ecember 9CC>. )he manpower was A79 and the number of shareholders was ;;@?. !uring my : months internship period at #irpur Branch of Al-Arafah Islasmi Bank Limited the e*periences that I learned are e*pressed in my report.

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(.) Origin of the report

1e the students of Bachelor of Business administrative $rogram are asked to complete internship program as an integral part of Bachelor of Business administrative program. After completion of the program period a student must submit the report on the assigned topic to the <upervisor and the department. <i* +>, credit hours for this internship program are being reserved. )his programEs duration is three months. I was assigned to Al-Arafah Islami Bank Ltd to complete the program. #y respective <upervisor has given me the topic 3An analysis of financial Activities of Al-Arafah Islami Bank Ltd.4

(.+ Ob/ecti$e of the Report'

Deneral ob6ective of the .eport )he main purpose of the study to know the overall lfinancial operational performance of the Al-Arafah Islami Bank Ltd .and fulfilling the practical re"uirements of the BBA program. )he ob6ective of Islamic banking is not only to earn profit but also to do good and welfare to the people. Islam upholds the concept that money income and property belong to Allah and this wealth is to be used for the god of the society. Specific Ob/ecti$es are' )o gather comprehensive knowledge on overall banking functions of the AlArafah Islami Bank Ltd. )o know about the policy of general Banking Accounts and advance and loan recovery techni"ues. )o e*plain the meaning and concept of consumer deposit <cheme. Interviewing the concern people to get information about the organi'ations present and future plan regarding this topic. )o ac"uire in depth knowledge about AIBL . )o know about the banking software. )o conduct interest F free banking. )o analy'e the financial activities of Al-Arafah Islami Bank Ltd. www.AssignmentPoint.com

(., Scope of the Report

As I was working in the Al-Arafah Islami Bank Limited Mirpur Branch I got the opportunity to learn different part of banking system. #y supervisor divided the whole banking in two parts so that I can get the opportunity to work in both the divisions Deneral Banking division and Investment division to analy'e the whole financial activities. As there is no Foreign 0*change division I did not get any practical knowledge about this division. But my supervisor gives me a overall briefing about foreign e*change division.

(.. Methodolog% of the Report'

)his report is basically prepared on the basis of my e*perience with AIBL. !ata collectionG )he basic source of data collection is based on both the primary and secondary sources which are used in the preparation of this report. $rimary sourcesG !irect observation of daily banking activities. %bservation of daily transaction for operation level. (uestioning with concerned persons + officers 5 employees ,. !iscussion with )op level management . <econdary sourcesG Internal sourcesG Bank Annual .eport Brochure of AIBL #onthly .eport $ublished !ocuments 0*ternal <ourcesG

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 !ifferent books 6ournals and periodicals that are related to the banking sector. %fficial website of the bank.

(.0 &ime schedule

Data collection 11111111.11+2 da%s !ata analysis8888888888.88..9C da%s .eport writing888888888888..9C da%s .evise 888888888888888...7C da%s Finali'e8888888888888 8..7C da%s )otal 888888888 8..8AC da%s

(.3 !imitations of the Report'

!uring my internship period the problems that I faced are mentioned belowG )op level management officers are busyG In banking system data is more important to evaluate the performance of the certain bank but data is managed strictly by the top level management and they are also busy. )ime limitationG )he ma6or limitation is time binding. 0*perience comes from learning but learning takes time. Ade"uate time is re"uired for learning. )hree month is sufficient to learn but banking system is more comple* that re"uire more time to learn completely. <ecrecy problemG 0very organi'ation follows its own secrecy. For a financial institution it is very risky to disclose the secret information to others. Lack of co-operationG Few officers sometimes feel disturbed as they were busy in their 6ob. <ometimes they did not want to supervise me out of their official works. Inade"uate dataG <ome desired information could not be collected due to confidentially of business and the limited services of the branch. www.AssignmentPoint.com

All of the above limitations are seriously hampered my internship report

Chapter-2

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Al4Arafah Islami ank !imited' An O$er$iew

).( 5istorical ackground of AI !

Islam provides us a complete lifestyle. #ain ob6ective of Islamic lifestyle is to be successful both in our mortal and immortal life. )herefore in every aspect of our life we should follow the doctrine of Al-(uran and lifestyle of /a'rat #uhammad +sm, for our supreme success. Al-Arafah Islami Bank started its 6ourney in 7AA= with the said principles in mind and to introduce a modern banking system based on Al-(uran and <unnah. A group of established dedicated and pious personalities of Bangladesh are the architects and directors of the Bank. Among them a noted Islamic scholar economist writer and e*-bureau craft of Bangladesh government #r. A.H.#. <hamsul Alam is the founder -hairman of the bank. /is progressive leadership and continuous inspiration provided a boost for the bank in getting a foothold in the financial market of Bangladesh. A group of 9> dedicated and noted Islamic personalities of Bangladesh are the member of e*ecutive council of the bank. )hey are also noted for their business acumen. Al-Arafah Islami Bank Ltd. /as => branches. 1isdom of the directors Islamic bankers and the wish of Almighty Allah make AlArafah Islami Bank Ltd. most modern and a leading bank in Bangladesh.

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).) Ob/ecti$e of A I!
Al-Arafah Islami Bank Limited is Islamic Banking institutions that operates with the ob6ectives implement and materiali'e the economic and financial principles of Islamic in the banking arena. )he ob6ectives of AIBL are not only to earn profit but also to do good and welfare to the people. )he main ob6ectives of AIBL are listed below )o establish participatory banking instead of banking on debtor creditor relationship )o invest through different modes permitted under Islamic <hariah )o accepts deposits on profit loss sharing basis )o establish as welfare Foriented banking system )o e*tend co-operation to the poor the helpless and the low income group for their economic up liftmen )o play a vital role in human development and employment generation )o contribute towards balances growth and development of the country through investment operations particularly in the less developed areas )o contribute in achieving the ultimate goal of Islamic economic <ystem. )o conduct interest free banking.

).+ Special feature of the ank'

All activities are conducted and interest free system according to the Islamic shariah Its investment policies under different modes are fully <hariah complain. !uring the year 9CCA ?CI of the investment income has been distributed among the #udaraba depositors.

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 It believes in providing dedicated services to the clients imbued with Islamic spirit of brotherhood peace and fraternity. )he bank is committed towards establishing a welfare-oriented banking system to meet the needs of low income and underprivileged class of people. )he Bank upholds the Islamic values of establishment of a 6ust economic system through social emancipation and e"uitable distribution of wealth.

)., 6inancial Information about AI !'

)able 9.7 $articulars Investment income $rofit paid to depositors 2et investment income -ommission 0*change and other income )otal operating income )otal operating e*pense $rofit before ta* and provision $rovision on investment and others $rofit before )a* 2et profit after )a* 0arning per share + 0$< , 9CC@ :=C9.7; 999C.;? 79@7.>@ @@=.79 97>>.@C >:@.?C 7=9@.7C 9>A.9C 79=@.AC >>@.9; ;@.9A 9CC? 99;:.7= 7>9@.>: >7;.=9 ?79.;> 7:9>.A@ =?C.@C ?=>.7@ 7?:.:; =@9.@; :;?.:7 9=.7C 9CC> 7?;9.7A 79;=.79 ;@C.=9 =7C.79 7C;=.79 ;?C.=@ =?@.;= 77=.79 ;@C.9: 9=C.=@ 7=.7C

).. Mission of AI !
Achieving the satisfaction of Almighty Allah both here 5 hereafter. $roliferation of <hariah Based Banking $ractices (uality financial services adopting the latest technology Fast and efficient customer service #aintaining high standard of business ethics Balanced growth <teady 5 competitive return on shareholders e"uity Innovative banking at> a competitive price Attract and retain "uality human resources 0*tending competitive compensation packages to the employees Firm commitment to the growth of national economy Involving more in #icro and <#0 financing

).0 7ision of AI !
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)o operate based on Islamic principles of transactions along with ensuring 6ustice and e"uity in the economy.

)o be a pioneer in Islami Banking in Bangladesh and contribute significantly to the growth of the national economy.

)o improve Banker- -ustomer relationship through improving customer service

)o develop new and innovate product&service through integration of technology and policy and principle.

).3 Distribution of ranches

AIBL started its working at 7>7 #oti6heel -&A with a Branch named #oti6heel Branch on 9?th <eptember 7AA= was the first 5 main Branch of AIBL and has been operating throughout the country. )he /ead %ffice of the Bank was situated at the same holding of #oti6heel Branch since its establishment but from 77 January 9CC? it has started its working at its own premises :> !ilkusha +>th ?th @th 5 Ath floor, !haka-7CCC. )he age of the Bank is only 77 years and during this short period of time the Bank has established total =C Branches over the country and made a smooth network inside the country. )he number of Branches as !ivision wise is mentioned in the following tableG )able 9.9 Di$ision !haka !ivision -hittagong !ivision .a6shahi !ivision Khulna !ivision <ylhet !ivision Barisal !ivision &otal 8o. of ranches 99 77 @ > = ; .0

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6igure ).(

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).9 A!4ARA6A5 IS!AMI A8: RA8C5 S"&4;P.

At a -lance of AI ! ranch !ocations'

<ourceG httpG&& www.al-arafahbank.com

2.9 Organ gram of Al-Arafah Islami Bank Ltd.

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6igure ).)
Advisor Chairman Board of Director

Managing Director Executive Vice President Senior Vice President Vice President

Assistant vice President Senior Principal Principal Senior fficer

fficer ffer

!unior

fficer

Assistant

fficer

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).(2 6inancial Performance of Al4Arafah Islami ank !td.

AIBL is one of the new entrants of the :rd generation banks having only =C branches currently. 1ith in short time period AIBL has been to create an image as a progressive and dynamic financial institution for itself and has earned significant reputation in the countryEs banking sector. !espite of stiff competition in banking sector AIBL witness a considerable improvement in its overall business performance during :7 !ecember which contributed to consolidate the position of the bank. At the end of current year the number of depositors stood at 9;:9?: and the amount deposit has accumulated to )k.7>??=.:: million. )he total numbers investors are 7:97: and total investment e*tended to them was a sum of taka 7?;9:.7A million. )he bank has earned )k.97?9.;@ million and incurred an e*pense of )k.79C9.?7 million in the current year. At the end of the year the profit before ta* has stood )k.@==.;? million which is ?@.A?I more than )k.;?@.CC million pre-ta* income of the last year.

).((. Performance of &otal Deposit.

)he total deposit of the bank was )k.7> >AC.79 million at :7 st !ecember 9CC? of which bank deposit was >77.?9 million taka and general deposit was 7>7>:.>7 million taka. at the same time in the last year the amount of total deposit was 9A >AC.79 million taka. In this area the growth rate =;.C?I. Figure 9.: .
Million Taka
20000 15000 10000 5000 0 2003 2004 2005 2006 Deposit 3-D Colum n 2 3-D Colum n 3

Total Deposit

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).() Role of AI ! in the "conomic De$elopment of angladesh

Al4Arafah Islami ank !td <AI != Pla% a $ital role in gi$ing a direction to econom%>s de$elopment o$er time b% financing the re?uirements of trade and industr%. % encouraging thrift among people@ banks@ foster the process of capital formation. anks induce the sa$ers to hold their sa$ings in the form sociall% useful assets of which bank deposits constitute the most important element. &hrough this the banks draw communit% sa$ings into the organi*ed sector which can then be allocated to different economic acti$ities according to the priorities laid down b% planning authorities of the countr%. )he growth of economy is tied with the growth of banks in it. Banks operate as institutions for promoting industriali'ation e*pansion of trade and commerce development of agriculture sustaining stability in price levels settlement of payments for imports and e*ports and so on.

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Chapter-3

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!iterature Re$iew of AI !
+.( Meaning of Islamic anking
)he Deneral <ecretariat of the %rgani'ation of Islamic -onference +%I-, in its Foreign #inisters -onference held in <enegal in 7A?@ approved the definition of Islamic Bank as 3a financial institution whose statutes rules and procedures e*pressly state its commitment to the principles of Islamic <hariah and to the banning of the receipt and payment of interest on any of its operations4. According to Islamic Banking Act of #alaysia an Islamic Bank is a 3company which carries on Islamic Banking business Islamic Banking business means banking business whose aims and operations do not involve any element which is not approved by the religion Islam.4 !r. Hiauddin Ahmed <ays 3Islamic 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.4 It appears from the above definitions that Islamic banking is a system of financial intermediation that avoids receipt and payment of interest in its transactions and conducts its operations in a way that it helps achieve the ob6ectives of an Islamic economy. Alternatively this is a banking system whose operation is based on Islamic principles of transactions of which profit and loss sharing is ma6or feature ensuring 6ustice and e"uity in the economy. )hat is why Islamic banks are often known as profit and loss sharing banks.

+.) Islamic anking Mo$ement &hroughout the world

)he e*pansion and unfolding of Islamic banking along with traditional interest based banking is a recent phenomenon. Islamic banking is an inseparable part of Islamic economy. !uring fifties it was only a sub6ect matter of research and was limited to the writings of scholars and philosophers. !uring the si*ties actual e*periments were made www.AssignmentPoint.com

and in the seventies Islamic banking institutions started gaining strength. )he eighties and nineties are and the period of consolidation and now Islamic banking is coming up as the only welfare banking system of the modern world. Ahmad al 2a66ar played the pioneering role in establishing the first Islamic bank in the modern world in 7A>: at #itgamar 0gypt. -onse"uently Islamic banking movement achieved steady progress and assumed significant dimension and role with the establishment of the 2asser <ocial Bank +7A?9,. !ubai Islamic Bank +7A?=, Islamic !evelopment Bank +7A?=, Faysal Islamic Bank in 0gypt and <udan +7A??, Jordan Islamic Bank for Finance and Investment was established in Jordan in +7A?@, )urkey in +7A@:,. $akistan declared all banks as Islamic in 7A?@ and Iran declared in 7A@;. 0mergence of development Bank as an International Financial Institution with a view to institutions was considered as a milestone in the history of Islamic banking. As on today more than :CC Islamic financial institutions in about =C countries operation throughout the world covering both #uslim and non- #uslim countries of various socio economic environment.

+.+ Ob/ecti$es of Islamic ank

)he ob6ective of Islamic banking is not only to earn profit but also to do good and welfare to the people. Islam upholds the concept that money income and property belong to Allah and this wealth is to be used for the god of the society. &he main ob/ecti$e of Islamic anking isA )o conduct interest free Banking. )o establish $articipatory Banking instead of Banking on debtor- creditor relationship. )o invest through different modes permitted under Islamic <hariah. )o accept deposits on profit-loss sharing basis. )o play a vital role in human development and employment generation www.AssignmentPoint.com

)o contribute in achieving the ultimate goal of Islamic economic system.

+., Distinguishing 6eatures of Islamic ank

An Islamic bank has several distinctive features as compared to its conventional counterpart. -hapra had outlined some essential difference as blew. Abolition of interest +.iba, Adherence to public interest #ulti purpose bank #ore careful evaluation of investment demand 1ork as catalyst of development

Al-Arafah Islami Bank is established on the basis of some Islamic ideology so that it can insure the Islamic economic system. AIBL is competing with successfully as a fast track leading organi'ation in the Islamic banking sector and non- Islamic banking sector. 7arious Di$isions of AI !' AI ! is comprised with the following di$isions' Investment division -omputer 5 I) division /.! !ivision Asset- management division -ommon <ervices !ivision

)he divisional /eads while discharging their duties 5 responsibilities are advised to ensure due compliance of7. .elevant Bangladesh Bank core .isk guidelines in respective area of operation and www.AssignmentPoint.com

9. All standing orders instructions etc. of the .egulator and Authority of the Bank issued from time to time 5 in force.

+.. 8ature of usiness'

)he bank is caring out commercial corporate investment retailing banking related services as followsG -orporate Finance -orrespondence Banking !ocumentary credits Foreign e*change <yndicated finance %ther related Business.

+.0 An O$er$iew of AI !@ Mirpur ranch

#irpur Branch is one of the most important Branches of AIBL. )his branch was established in !ecebberA 7AA?. It is situated #irpur -7 in a commercial area at the centre of the #irpur. )his branch acts as an authori'ed dealer reprehensive of AIBL. 2ow it has around 7A employees. )his plays a vital role in increasing profitability of AIBL. 7arious Di$isions of the Mirpur ranch' 6igure +.( Department

General Banking

Investment

Foreign Exchange

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A/C pening

Cash

Clearin g

Acco!nt

Export

Import

1orking repot is based on the working e*perience on the bank. #ore specially to say this working report is defragmented into three departments. Basically it consists of the process that I had e*perience during my internship. In the AIBL have three departments F Deneral Banking !epartment Investment !epartment Foreign 0*change !epartment

Let us go through the working report for each of the department.

Product of AI ! ank !td. as an Islamic ank

)he AIBL +Al-Arafah Islami Bank, offers their customersE genera banking facilities which ensures the safety of their money as well as the fair and smart return of their money. Following are the ways through which Banks collects their deposits from the clientsG A. AL-1A!IA -U..02) !0$%<I) . #U!A.ABA <ABI2D< !0$%<I) C. #U!A.ABA </%.) )0.# !0$%<I) D. #U!A.ABA )0.# !0$%<I) ". #U!A.ABA <U2!.L !0$%<I) 6. #U!A.ABA !0$%<I) U2!0. <-/0#0< -. BAI #UAHHAL <$L.!0$%<I) +--/, 5. F%.0I2D -U..02-L !0$%<I)< www.AssignmentPoint.com

I. BAI #.AJJAL !0$%<I) +--/, B. #U.AB/A/A !0$%<I) +--$,

!akhapati deposit scheme' Under this scheme can be built up a significant amount of deposit money by depositing monthly respectively )k. 9:?= )k.79?= )k.>?C )k.;>C and )k. ::= for the years : = @ 7C5 79. At maturity level total amount of appro*imately )k.7CCCCC. +BranchEs statement of affairs,

Modes of In$estment'
(. ai4 MurabahaG Bai F#urabaha may be define as a contract between a buyer and a seller under which the seller sells certain specific goods +permissible under Islamic <hariah and the law of the land, to buyer at a cost plus agreed profit payable in cash or on any fi*ed future date in lump sum or by installments. )he profit marked Fup may be fi*ed in lump sum or in percentage of the cost price of the goods. ai4 Mua//al' Bai- #ua66al may be defined as a contract between a buyer and a seller under which the seller sells certain specific goods +permissible under Islamic <hariah and the law of the land, to buyer at a cost plus agreed profit payable on a certain fi*ed future date in lump sum or within a fi*ed period by installments. )he seller may also sell goods purchased by him as per order and specification of the buyer. I/ara il4 ie <5ire Purchase= )he hire purchase method of financing enables a bank to finance the purchase of movable and immovable assets. It is a 6oint ownership agreement sub6ect to the provision of security&surety provided by the client. In addition to the repayment of the principal amount the bank receives a share in the net rental value after allowing for necessary deduction on account of depreciation of asset. )his payment is made after ad6usting the bankEs outstanding share of the asset which reduces with each installment payment made by the client. )he cost of insurance of the asset is shared by the bank and the other party in proportion of their capital contribution to the asset. After the full payment has www.AssignmentPoint.com

been made the client becomes the owner of the asset. Until full payment has been made the client is only entitled to the use of the asset.

<ince this mode of Financing involves inflow of cash over a considerable period of time the discounting techni"ues can be applied to evaluate the acceptability of the pro6ect. 0ach and every e*pected installment payment should be converted to present value by applying the appropriate discount rate. )he ne*t step would be to sum up the present value of the streams of cash inflows and compare it with the purchase price. A proposal yielding a positive net present value would be accepted and otherwise re6ected. )he same concept applies while applying the I.. method whereby the minimum e*pected rate of return is calculated which would e"uate the present value of cash inflows with the initial cash outflow. An investment proposal failing to yield this minimum re"uired rate of return should be re6ected. Mudaraba' It is a form of partnership in profit where by one party provides funds while the other provides e*pertise and management. )he first part is called the <ahid-al-#aal and the later is referred to as the #udarib. Any profit accrued is shared between two parties on a pre-agreed rates while capital loss is e*clusively borne by the partner providing the capital e*cept it is due to the breach of trust by the #udarib. Musharaka' #usharaka is a contract of partnership between two or more individuals or bodies in which all partners contribute capital participate in the management share the profit as per pre-agreed ratio and beat the loss if any in proportion to their capital&e"uity ratio. ai4Salam' Bai-<alam may be defined as a contract between a buyer and a seller under which the seller sells in advance the certain commodities&products permissible under Islamic <hariah and the law of land to the buyer at an agreed price payable on e*ecution of the said contract and the commodities&products is&are delivered as per as specification si'e "uality "uantity at a future time in a particular place. In other words Bai-salam is a sale where by the seller undertakes to supply some specific commodities&products to the buyer at a future time in e*change of advance price fully paid on the spot. www.AssignmentPoint.com

Other special In$estment Scheme' #as"ue Based Investment <cheme Betches Investment <cheme -onsumer Investment <cheme <mall investment <cheme

+.3 Risk management

)he risk of Al-Arafah Islami Bank limited is defined as the possibility of losses financial or otherwise. )he risk management of the Bank covers > +si*, -ore risk Areas of banking I . e -redit risk management foreign e*change risk management Assets Liability #anagement prevention of money laundering and establishment of Internal -ontrol and -ompliance and information 5 -ommunication technolology. )he prime ob6ective of the risk management is that the Bank takes well calculative business risk while safeguarding the BankMs capital its financial resources and profitability from various risks. In this conte*t the Bank took steps to implement the guidelines of Bangladesh Bank as under.

+.9 Credit Risk management

-redit risk is one of the ma6or risks faced by the Bank. )his can be described as potential loss arising from the failure of a century party to perform as per contractual agreement with the Bank. )he failure may result from unwillingness of the counter party of decline in his&her financial condition. )herefore BankEs credit risk management activities have been designed to address all these issues. )he bank has an Investment +-redit, .isk management -ommittee at /ead %ffice. )he -ommittee reviews the Investment risk issues on monthly basis. )he bank has segregated the Investment Approval Investment Administration Investment .ecovery and Legal Authority. )he Bank has segregated duties of the officers&e*ecutives involved in credit related activities. A separate Business !evelopment +#arketing, !epartment has been established at /ead %ffice which is www.AssignmentPoint.com

entrusted with the duties of maintaining effective relationship whit the customer marketing of credit products e*ploring new business opportunities etc. In the branches of the bank separate officials are engaged as .elationship #anager !ocumentation %fficer Berification %fficer disbursement %fficer and .ecovery %fficer. )heir 6obs have been allocated and responsibilities have been defined.

+.C In$estment <Credit= Risk -rading Manual

)he bank has implemented the Investment +-redit, .isk Drading #anual +I.D#, since April 9CC> which is made mandatory by Bangladesh Bank vide B.$! -ircular 2o. 7@ of !ecember 77 9CC=. Investment %fficials of the bank have been trained on I.D#. Investment .isk Drading is incorporated in the Investment presentation From for all the cases.

+.(2 6oreign e#change risk Management

Foreign e*change risk is defined as the potential change in earnings arising due to change in market prices. As per Foreign 0*change risk #anagement Duideline bank has physically establishment a separate )reasury !epartment at /ead %ffice. Under the )reasury !epartment Foreign e*change Font %ffice Foreign e*change Back %ffice and Local #oney #arket have been physically demarcated. !uties and responsibilities of them have also been defined. All foreign e*change transactions are revalued at #arketto #arket rate as determined by Bangladesh Bank at the month-end. All 2ostro accounts are reconciled on monthly basis and outstanding entry beyond :C days is reviewed.

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+.(( &%pes of Islamic anking Contracts Figure :.9

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Concessionar " &ro%it an$ loss sharing

Appreciator" mechanisms

#ra$e %inancing

'on-pro%it an$ loss sharing

(!$ara)a #r!stee %inancing (!sharaka E*!it" participation (!sa*at rchar$ %inancing Direct investment

(ard oI4hosonah Benevolent loan BaiNrnua,6al +pot sales aiDsolam For-ar$ contracts I6ara wa i"tinaN ,easing #urbhaho Cost pl!s mark!p JoNalah +ervice charge

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Chapter-.

-eneral anking Operation of Al4Arafah Islami ank !td.

Deneral banking is the most important and fundamental activities of a bank. )he general banking performance of AIBL is very systematic and satisfactory. www.AssignmentPoint.com

,.(. -eneral anking Acti$ities'

Barious general banking activities are pointed belowG )he ma6or activities of AIBL that it performs under general banking are e*plained in this section. <ervicesG )he AIBL +Al-Arafah Islami Bank , offers their customers general banking facilities which ensures the safety of their money as well as the fair and smart return of their money. Following are the ways through which Banks collects their deposits from the clientsG Al-1adiah -urrent account -!, #udarabah deposit Account +#!, #udarabah term deposit +#)!,

Account opening section. -ash collection section. !eposit section. Investment section. .emittance section. !ispatch section. -omputer controller section.

#udaraba /a66 deposit )erm /a66 !eposit Installment term !eposit +I)!, #onthly profit based deposit +$)!,

#arriage saving installment scheme +#<I<, Al- Arafah <aving Bond Kotipoti !eposit scheme #illionaire !eposit scheme !ouble benefit scheme $ensoniare !eposit scheme

!ifferent <ervices %f AIBLG )able ;.7 www.AssignmentPoint.com

<I. 2oG 7. +a, +b, +c, +d, +e, 9. :. ;. =. >. ?. @. A. +a, +b, +c, 7C. 77. 79. 7:. 7;. 7=. 7>. 7?.

)ypes of !eposit #udaraba )erm !eposit :> months 9; month 79 month C> month C: month #udaraba savings !eposit <hort 2otice !eposit +<2!, #onthly /a66 !eposit #onthly Installment )erm !eposit +I)!, #onthly profit Based )erm !eposit +$)!, #onthly <avings Investment +<I!, %ne time /a66 !eposit Al-Arafah saving Bond +: years, Al-Arafah saving Bond += years, Al-Arafah saving Bond +@ years, #arriage <aving Investment <cheme +#<I<, $ensioners !eposit <cheme <pecial <aving +pension, scheme -ash 1A(F Lakhopati !eposit scheme Kotipati !eposit scheme #illionaire !eposit scheme !ouble Benefit scheme

$rofit I 7CI 7CI 79I 77.=CI 77I =I ;I 7C.9=I 7C.9=I 77.9=I @I A.=I 7CI 7C.=I 77I @.9=I 7C.@I 7C.9=I A.=I 7C.9=I 7C.9=I 7C.9=I 79.9=I

,.). &o Open A 8ew Account'

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)his is a period of keen competition among banks. #ost of the commercial banks compete with one another in tapping the savings of the public by means of purchasing of different types of financial product. )hese products are known as secondary securities which shows claim against the financial institutions. popularly these products are known as deposit kinds of various maturities. )he most popular products are -! <!. Fi*ed !eposit <hort term !eposit etc.

,.+ Account Opening Procedure in a flow chart4

Figure ;.9
Applicant %ills !p the relevant application %orm in the prescri)e$ manner/ 0e/+he is re*!ire$ to %ill !p the specimen signat!re car$

For in$ivi$!al intro$!ction is nee$e$ )" an acco!nt hol$er

#he a!thori1e$ o%%icers scr!tini1e ACC 3'# I+ &E'ED/ the intro$!ction an$ examine the $oc!ments s!)mitte$/

A%ter $epositing the cash one che*!e )ook 2 pa"in-slip )ook is iss!e$/

Iss!ance o% $eposit slip an$ the $eposit m!st )e ma$e in cash/

,.,. Account Opening Criteria'

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$ersons over 7@ year +0*pect some restricted $ersons, Account of club Association Agent Dovt. and semi-Dovt. %rgani'ation. Li"uidators #inor #arried women $ardanshil women Illiterate persons

,... Re?uirements of 8ew Account'

A, Individual AccountG )wo recent passport si'e photographs of the A&- holders duly attested by the introducer. -opy of passport if available or certificate from the chairman & commissioner or letter of introduction by a person accepted to the bank. %btain and fill up the KL- +know your customer,from imposed by the Bangladesh bank. Berification of introducerEs signature. Admittance of the signature of the opener& operators of the A&-. )ransaction profile from fulfilled. $reservation of Account %pening File +AF%, and specimen card. B, Joint AccountG All terms for individuals A&- holder as stated above. )wo or more persons can open A&-. Authori'ed persons can operate the A&-. Authority is automatically revoked by death insanity or bankruptcy. <toppage of payment by anyone of A&- holder. $artnership AccountG $artnership account is like a 6oint account. #ust submit a copy of partnership !eed. )he partners need to fill up the letter of Al-Arafah Islami Bank with their names and signatures. )hey have to submit a trade license. )hey have to fill up the KL- form. Account opening .egisterG www.AssignmentPoint.com

-,

After fulfill all the re"uirements for opening account necessary entries are given in the account opening register. )here are several registers for several deposits as #<! A1-! and )!. etc. !ate of opening name of the account holder nature of the business address initial deposit and introduction 5 various information are recorded that register. 2ew number is given from the list of new accounts provided by the computer department.

Che?ue ook'
-he"ue book is issued to the new customer after opening account as well as to e*isting customer after completing the use of previous che"ue book. )wo separate che"ue books are given to current and savings deposits. A1-! accounts che"ue book is consists of 9C and =C leafs while #<! account che"ue book has 7C leafs. )here is a che"ue issue registers in this regardO where che"ue book number leaf number dates of issue etc. information is kept. All the necessary numbers are sends to the computer department to give entry in the program. Issuance of the che"ue to new customer is fee from any comple*ity. But incase of 9nd provision of a comple* process should be maintained. 0ach che"ue book white leaf for issuing the ne*t che"ue book. )his leaf contain following information 7. 9. :. ;. =. 2ame of the A&- holder Inked marked of the A&- holder Address of the A&- holder <ignature of the A&- holder Blank space for placing new range of che"ue number and officers signature. >. !ate issuing previous che"ue book. ?. .ound shaped seal of #irpur Branch with signature of authori'ed officer. @. 2ame of A&- holder written by officer. -lients should have to fill up the information headed by the item 7 9 ;. By filling up this item properly he&she will submit it to computer verification counter to verify the signature. 2ow what type A&- this is. <eparate register book is to maintained for -! #<! 5 <2!7Cleaf -A-+9C-=C,leaf and <2!-has number specified limit.

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,.0 -eneral Characteristics of Deposit Account'

A!4EADIA C;RR"8& D"POSI& %ne of the most significant sources of deposits is the AL 1A!IA current deposit. It has some similarity with the current account of conventional bank. )he term Al F 1adiah -urrent !eposit means deposit of money allowing somebody to sue it. Banks being a trustee preserves and keeps or in safe custody of what is deposited. !epositors feel safe in keeping their money with the bank and take transaction facilities. Re?uirements for opening Al4Eadia current deposit' In case of Individual person for opening this account need two copies attested photo and an introducer who has an AL-1A!IA -U..02) !0$%<I). In case of sole proprietorship firm for opening this account need two copies attested photo and trade licence. In case of partnership firm for opening this account need two copies attested photo of those persons who can operate A&- and trade license and partnership deed. I n case of public limited company for opening this account need above documents and certificate of commencement. M;DARA A SA7I8-S D"POSI&
Mudaraba Saving Deposit (MSD) is open by the lower and middle classer people who wish to save a part of their incomes to meet their future need intend to earn an income from their savings. It aims at encouraging savings of non-trading person(s), institution(s), society, etc. by depositing small amount of money in the ban .

Re?uirements for opening Mudaraba Sa$ings Deposit' In case of individual person for opening this account need two copies attested photo and an introducer who has a !0$%<I). #U!A.ABA <ABI2D<

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In case of non-trading person+s, institution+s, society etc for opening this account need two copies attested photo of those persons who will operates A&c and an introducer who has a #U!A.ABA <ABI2D< !0$%<I).

Restriction on withdrawals and deposit' )he number of withdrawals over a period of time is limited. )wo withdrawals per week are permitted. But more than that no interest will be paid on rest amount for that month. )he total amount of one or more withdrawal on any date should not e*ceed 9=I of the balance in the account unless ? +seven, days advance notice is given.

Cash Section'
-ash section demonstrates li"uidity strength of a bank. it also sensitive as it deals with li"uid money . ma*imum concentration is given while working on this section. As far as safety is concerned special precaution is also taken. 7ault' All cash instruments +$.% !.! and che"ue, other valuables are kept in the vault is insured up to )K ; cr with local insurance company. If cash stock goes beyond its limit of tk ; cr the e*cess money is transferred to Bangladesh bank if there is shortage of cash during transaction period. #oney is transferred to drawn from the central bank. there are three keys of the vault which are given to three seniors most officers. !aily as estimated amount of cash brought out from the vault for transaction purpose. 2o more than ; cr brought at once from the vault on a single day. &eller Customer Relationship' In a bank a person who delivers and receives cash from the cash counter is known as teller. A customer meets most of the time in a bank with a teller on the counter. <o teller should hold the following (ualitiesG <hould be friendly. $rovide prompt service. Be accurate in his task. In short a teller should be efficient. Cash packing and handlingG www.AssignmentPoint.com

-ash packing 5 handling needs a lot of care as any mistake may creates a disastrous impact during the banking hour. 1hen the counter is closed cash are packed according to denomination. 2otes are counted several times and packed in bundle stetted and stumped with initial. Remittance section: It deals with payment and cancellation of $% !! )) and %utward 5 Inward bills +%B5 IB-, etc. AIBL sells and purchase $% !! and )) to its customers only. Telegraph transfer (TT A telegraph transfer +)), is an instruction for transfer of money by telegraph cable and tele* from a bank in one center to another bank in a different center. Denerally this is an instruction from the importers bank to the e*portersE bank or some other bank in the e*portersE country for transfer of money to a named person. /ere the remitter bears the additional charge of tele*& telephone. -harge for )) is C.7=I of the principal amount and the additional charge for tele*. )elephone is )K. =C.CC.

Demand Draft <DD= !emand !raft is many popular instruments for remitting money from one corners of country another. )he instrument is basically used for transfer and payment. !ifference between pay order and demand draft is in terms of place only $% is used for remittance money with in the city where as !! is used for within the country !! too constitutes current liability on the part of a bank. At AIBL !! is not sold to people other than its customer. Pa% Order <PO= ' $ay %rder an instrument which is used to remit money with in a city thorough banking channel the instruments are generally safe as most of them are crossed. AIB charges different amount of commission on the basis of Payment order amount. The bank charges for pay order are given in the following chart: igure !." www.AssignmentPoint.com

#p to T$. %&'&&&.&& T$. %&'&&%.&& ) T$ .%'&&'&&&.&& T$. %'&&'&&%.&& ) T$. ('&&'&&&.&& T$. ('&&'&&%.&& and above

!ommission T$. %(.&& T$. *(.&& T$. (&.&& T$. %&&.&&

Che?ue clearing section 6unctions of clearing 7, -learing stands for mutual settlement of claims made in among member banks at an agreed time and place in respect of instruments drawn on each other. 9, -learing house is an arrangement under which member banks agree to meet through their representative at the appointed time and place to deliver instruments drawn on them. :, )he net amount payable or receivable as the case may be is settled through an account kept with the controlling bank +Bangladesh Bank,. Figure ;.;

C,EA4I'G

I'5A4D

3#5A4D

&%pes of clearing I. %utward clearing II. Inward clearing Clearing <Outward= process' tier First tierG -ollection Branch <econd tierG $rincipal Branch&local office )hird tierG -learing house +Bangladesh Bank, www.AssignmentPoint.com

Clearing <Inward= process' tier First tierG -learing house +Bangladesh Bank, <econd tierG $rincipal Branch& #ain Branch )hird tierG $aying Branch In$estment Di$ision' )he special feature of the investment policy of the Bank is to invest on the basis of profit F loss sharing system in accordance with the tenents and principles of Islamic <hariah. 0arning is not only motive and ob6ective of the BakEs Investment policy rather emphasis is givien in attaining social goal and ob6ective in creating employment opportunities. &rading Modes of In$estment' ai4 MurabahaG Bai F#urabaha may be define as a contract between a buyer and a seller under which the seller sells certain specific goods +permissible under Islamic <hariah and the law of the land, to buyer at a cost plus agreed profit payable in cash or on any fi*ed future date in lump sum or by installments. )he profit marked Fup may be fi*ed in lump sum or in percentage of the cost price of the goods. ai4 Mua//al' Bai- #ua66al may be defined as a contract between a buyer and a seller under which the seller sells certain specific goods +permissible under Islamic <hariah and the law of the land, to buyer at a cost plus agreed profit payable on a certain fi*ed future date in lump sum or within a fi*ed period by installments. )he seller may also sell goods purchased by him as per order and specification of the buyer. I/ara il4 ie <5ire Purchase= )he hire purchase method of financing enables a bank to finance the purchase of movable and immovable assets. It is a 6oint ownership agreement sub6ect to the provision of security&surety provided by the client. In addition to the repayment of the principal amount the bank receives a share in the net rental value after allowing for necessary deduction on account of depreciation of asset. )his payment is made after ad6usting the www.AssignmentPoint.com

bankEs outstanding share of the asset which reduces with each installment payment made by the client. )he cost of insurance of the asset is shared by the bank and the other party in proportion of their capital contribution to the asset. After the full payment has been made the client becomes the owner of the asset. Until full payment has been made the client is only entitled to the use of the asset. <ince this mode of Financing involves inflow of cash over a considerable period of time the discounting techni"ues can be applied to evaluate the acceptability of the pro6ect. 0ach and every e*pected installment payment should be converted to present value by applying the appropriate discount rate. )he ne*t step would be to sum up the present value of the streams of cash inflows and compare it with the purchase price. A proposal yielding a positive net present value would be accepted and otherwise re6ected. )he same concept applies while applying the I.. method whereby the minimum e*pected rate of return is calculated which would e"uate the present value of cash inflows with the initial cash outflow. An investment proposal failing to yield this minimum re"uired rate of return should be re6ected. Other special In$estment Scheme' #as"ue Based Investment <cheme Bachels Investment <cheme -onsumer Investment <cheme <mall investment <cheme

,.3 Performance in case of total In$estment'

At the end of the year 9CC> the amount of investment of the bank was )k.7?;9:.7A million in comparison to )k.77;?;.;7 million of the last year 9CC=.)he amount of investment has increased =A;@.?@ million taka within this period which is around =7@;I. Figure ;.=

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,.9 -rameen F small in$estment scheme

An investment product 3Drameen 5 small investment4 is in operation. )he ob6ective of this pro6ect is to introduce <hariah based banking system in rural and village area creating employment through financing to low income group build up savings attitude improvement of living standard of rural low income mass people creating opportunity to carry out Islamic lifestyle by way of alleviating poverty and at the same time to make other financially established by investing in small investment pro6ects. Initially this scheme was introduced in three branches of AI!L i.e. Dallai -omilla .uposhpur <rimongal and -ompanion -omilla.)here is a plan to e*pand this pro6ect gradually in other rural branches. 1ithin the scope of Drameen and <mall investment scheme Investment has been made in the following sectorsG 7. Fisheries 9. $oultry .earing :. -attle .earing ;. Doat .earing =. Beef fattening >. $oultry Firm ?. $rocesing of muree @. $rocessing of <weets A.<ationary business 7C. Begetables business 77. )ailorin Business 79. -ultivation of Betle Lealf 7:. 1oek of baboo and cane 7;. -ultivation of pinaapple 7=. -ultivation of lemon 7>. $rocessing of -rockeries 7?. $urchaseing of .ickshaw 7@. <mall business i.e. $addyEs .ice 7A. #edicine shop and shoe stores 9C. Library business www.AssignmentPoint.com

,.C SEO& Anal%sis of AI !

<1%) analysis provides an opinion and ad6ustment whether organi'ations currently position is satisfactory or not. Strengths

All the level of the management is solely directed to maintain a culture for the betterment of the "uality of the service. )he bank has earned customer loyalty as organi'ational loyalty. <killed personals have developed professional relationships with their customers and clients which is an emotional tie on regular business. AIBL is always trying to add new and modern e"uipments. 0mployees are sharing good atmosphere in AIBL so that it gave them reason to work efficiently and to become dedicated in banking. AIBL maintain corresponding relationship with many foreign banks so that it is an effective measure for the smooth business. )he top management officials all have had reputed of banking e*perience skill and proficiency.

Eeaknesses )he advertising and promotional activities of this bank are up to the mark.

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.eference appointment is very much effective in AIBL. As a result of this there are many who are only drawing salaries at the end of the month but making a minimum contribution towards the organi'ation. )here are some officers who work hard but are not appreciated by the authority. AIBL has not set up proper network system among branches. A remarkable portion of the total human resources is inefficient.

Opportunities

)he bank does not have any research and development division.

)he bank can introduce more innovative and modern customer service to better survive in the competition. )hey can also offer micro credit business for individual and small business. It is high time that they should move toward the online banking operationO because some banks are already introduce the online banking operation. Bank will be able to accommodate knowledgeable. <killed e*perience and hard working person by offering attractive remunerations and fringe benefits with nice working environment. By e*pending the financial policy with credit facility customer are very much secure in business environment.

)hreats

-entral bank +Bangladesh bank, is always supervising the local and foreign banks in Bangladesh and sometimes it is hampering the normal operation of private bank. www.AssignmentPoint.com

)hrough the innovation working is in continuous process but the other rival banks are copying it within the short time. )he world in advancing toward technology very fast. )hough AIBL taken effort to 6oin the stream it is not possible to complete the mission due to the poor technological infrastructure of our country. )hey are carrying our aggressive campaign to attract lucrative corporate client as well as big time depositor. Local competitors can also capture a huge market share by offering similar products and services provided by the bank.

Chapter-6
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..( Conclusion
Banks have their own uni"ue strategy which leads to their ob6ectives. <ome wishes to grow faster and achieve some long Frange growth. %n the other hand some banks want to lead a "uite life minimi'ing risk and convey an image of a sound bank. AIBL is pretty new in its operation. 0ven though the financial analysis on the banks performance seems the banks doing very well in the banking industry of Bangladesh and has prosperous future. AIBL has established goodwill through innovative products and services. )echnological development has opened up a new dimension in the development of creative products efficient services and customer satisfaction. )he Bank must cope with this technological advancement its present status. AIBL is more capable of contributing towards economic development compared with other conventional banks by dint of commanding most of their funds. )he bank sanctions investment in productive pro6ect leading to increase in production and development and also in e*port and import business. It may be e*pected that by establishing a network over the country and by increasing resources this bank will be able to play a considerable role in the portfolio of development of financing. Investment www.AssignmentPoint.com

management policies and techni"ues used in <JIBL is comparable to international standers. )he officials follow the policy very strictly. )hey are choosy and conservative in sanctioning loan. )he aim of the internship program is to gain knowledge of practical banking and to compare this practical knowledge with theoretical knowledge. !uring the 79 weeks internship program it is not possible to go to the depth or each activities of division because of time limitation. <o ob6ectives of this internship program have not been fulfilled with complete satisfaction. /owever highest effort has been given to achieve the ob6ectives of the internship program. I think this report may show a guideline to AIBL for its future planning and its successful operation to achieve its goal in the competitive environment.

..) Recommendation of AI !'

For improving the performance of Al- Arafah Islami Bank Limited following steps may be fruitfulG ..).( Al- Arafah Islami Bank Limited should delegate authority and responsibility to the branch so that they can take some decision in some cases. ..).) )he authorities must keep it mind that P2o risk 2o gainE is the main philosophy of a business. <o they should investment in the small and cottage industries even in the medium and large scale business. ..).+ Its advertisement must set up on the target based and ade"uate. ..)., As the management Information <ystem is new they should provide proper training the employees. ..).. Al- Arafah Islami Bank should introducing multidimensional service products to compete with other competitors. ..).0 <killed employees must be recruited to provide better services. ..).3 )op level management should take proper decision. ..).9 )he authorities of AIBL should set up right personnel to the right place at the right time.

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ibliograph%

AIBL 1orking #anual for different department. Awasthi D !O )rade $ayments- -ommentary -ases 5 )est 10B G 111.aibl.-%#. Import $olicy 7AA?-9CC9 published by #inistry of -ommerce Bangladesh

<ecretariat and !haka. #. Abul Bashar Bhuiya Bangladesh Laws on banks and banking 9nd edition #&< )awakkal $ress !haka 7AA>. #aheshwari <.2 Banking Law $ractice Kalyani $ublishers India 7A?A. Dupta <.B. #onetary 0conomicsG Institutions )heory 5 $olicy <. -hand 5 -ompany Ltd. new !elhi 7AA=.

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Appendi#
Eisdom of the directors@ Islamic bankers and the wish of Almight% Allah make Al4Arafah Islami angladesh
)able =.7 G /ighlight on the overall Activities of the Bank $articulars $aid up -apital )otal -apital -apital <urplus !eposit Investment )otal -ontingent Liability )aka 9CC@ 7:@:@7C;CC :C;A::>7:; :9?:CA9=> 9CC? 77=:7?=;CC 99;=7:7;@C 7@A@7@C=7

ank !td. most modern and a leading bank in

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