AN INTERNSHIP REPORT
ON
General Banking Activities (A focus on Account Opening, Bills
and Clearing Section) of Social Islami Bank Limited.
This research paper is submitted to the Department of Business
Administration, Noakhali Science and Technology University, in
partial fulfilment of the requirements for the degree of Bachelor of
Business Administration.
Supervised By
Jenepha Eyesmin
Lecturer,
Department of Business Administration,
Noakhali Science & Technology University,
Sonapur-3814.
Prepared By
Md. Muhibbullah
ID: ASH 1310052M
Session: 2012-13
Department of Business Administration,
Noakhali Science & Technology University,
Sonapur- 3814.
General Banking Activities (A focus on Account
Opening, Bills and Clearing Section) of Social
Islami Bank Limited.
2
PREFACE
This report is the outcome of my internship program under the Bachelor of
Business Administration (BBA) course of the Noakhali Science
&Technology University conducted at Social Islami Bank Limited, Maijdee
Branch.
The objective was to adopt with the practical implementation of the
knowledge gathered in the theoretical aspects of the practical life.
It is pleasure to submit my report entitled “General Banking Activities (A
focus on Account Opening, Bills and Clearing Section) of Social Islami
Bank Limited.”. While preparing the report I have tried to gather as much
information and data as possible to enrich this report. I believe that it was a
tremendous experience to work in the banking sector and it has enriched
both my knowledge and experience.
This report is not free from limitations. There might have problems
regarding lack and limitation in some aspects.
3
ACKNOWLEDGEMENT
First of all, I would like to pay my gratitude to the Almighty Allah for helping me in
preparing this internship report successfully. In the preparation and finish this internship
report, I acknowledge the encouragement and assistance given by a number of people and
institution. I am most grateful to the Social Islami Bank management to give me the
opportunity to complete my internship in their organization.
I am deeply indebted to my Faculty Supervisor Jenepha eyesmin, Lecturer, Department
of Business Administration, Noakhali Science & Technology University for her wholehearted supervision to prepare my internship report successfully.
I am also grateful to Mohammad Moshiur Rahman, FAVP & Manager (My
organizational supervisor). I am also grateful to all staffs- Muhammed Fakrul Islam(
Operation Manager),Md. Mezbaur Rahman, S.M. Anwar Hossain, Saidue Rahman and
A.N.M. Naim Uddin their valuable Co-operation, guidance, direction, and continuous
support throughout the internship period.
Finally Special thanks go to the respondents, who spared their time generously, and
helped me to complete my study.
4
LETTER OF ENDORSEMENT
This is certify that the internship report on “General Banking Activities (A focus on
Account Opening, Bills and Clearing Section) of Social Islami Bank Limited.” is
prepared by Md. Muhibbullah Roll No. : ASH1310052M, Session: 2012-2013,
Department of Business Administration(BBA), Noakhali Science & Technology
University, a candidate for the Degree of Bachelor of Business Administration (BBA) ,
Noakhali Science & Technology University
I also certify that, this report has been prepared under my supervision and guidance. In
preparing this report he spared much time and effort. The report is accepted and approved
in terms of quality and norms.
I wish him every success in life.
……………………………….
Jenepha Eyesmin
Lecturer,
Department of Business Administration
Noakhali Science & Technology University
5
EXECUTIVE SUMMARY
Social Islami Bank Limited (SBL) is a private commercial bank in Bangladesh registered
under the Companies Act, 1994. SIBL incorporated in 5th July 1995 and being into its
commercial operation on 22nd November with a view to provide exclusive service
facilities to its client and accordingly meet the demand of banking service all over
Bangladesh. During the short span of its operation the bank had been widely acclaimed
by the business community from small business persons to industrial conglomerates for
forward looking business outlook and innovative financial solution. The study has been
conducted for around three month. In the three month I prepared a report which consists
of several Parts & Chapters. I discussed about the objective, scope, limitation of the study
in the introduction part. I also discussed about the organization and overall history of
SIBL, their product information, Strength, Weakness and their major competitors.
During the internship period, the scope of the work was fast as I was assigned to work in
every department of the bank in Maijdee Branch, I have tried to observe and understand
the all banking activities especially general banking activities and other day to day
functions performed in this branch. During my working on SIBL Maijdee Branch, I have
found some lacking from my observation. I have tried to recommend some solution to
solve these problem and conclusion based on my study. Through the report I mainly try
to critically review the General Banking Activities especially Account opening and bills
& clearing section at Maijdee Branch of Social Islami Bank Limited Bangladesh.
6
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CONTENTS
SL. No.
Contents
Page
CHAPTER -1
INTRODUCTION
1.1
1.2
1.3
1.4
1.5
10
10
10
11
11
Introduction
Origin of the Study
Scope of the Study
Objectives of the study
Limitation of the Study
CHAPTER-2
METHODOLOGY OF THE STUDY
2.1
2.2
2.3
2.4
13
13
13
13-14
Introduction
Data sources
Data collection methods
Data analysis
CHAPTER -3
ORGANIZATIONAL OVERVIEW OF SIBL
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
3.11
16
16
16-17
17
17
17
18
18
18-19
19-20
20
Introduction
History of Bank
Journey with New Logo
Overall operational goals
Mission of SIBL
Vision of SIBL
Objectives SIBL
Functions of SIBL
Products and services
Marketing strategies
Corporate structure
CHAPTER -4
ANALYSIS OF GENERAL BANKING ACTIVITIES
7
(ACCOUNT OPENING, BILLS AND CLEARING
SECTION)
4.1
4.2
4.3
4.4
4.5
General Banking
General Feathers of General Banking
General Banking Area
Account Opening Section
Bills and Clearing Section
22
22
23
23-27
27-30
CHAPTER -5 FINDINGS, RECOMMENDATIONS AND
CONCLUSION
5.1
5.2
5.3
Findings
Recommendations
Conclusion
REFERENCES
8
32
33
34
35
CHAPTER - 1
INTRODUCTION
9
1.1 Introduction
“A Bank performs an essential distributive task, service or acts as an intermediary
between borrowers and lenders. In a sense, however, a bank can be considered the heart
of a complex financial structure.” ---- American Institute of Banking
Islamic banking, also known as non-interest banking, is a banking system that is based on
the principles of Islamic, or Shari'ah, law and guided by Islamic economics. Two
fundamental principles of Islamic banking are the sharing of profit and loss and the
prohibition of the collection and payment of interest by lenders and investors. Islamic law
prohibits collecting interest or "riba.
Social Islami Bank Limited (SIBL) is a private owned bank. SIBL is a second generation
Islamic bank operating since 22 November, 1995 based on Shariah Principles. Now SIBL
has 126 branches all over the country with two subsidiary companies-SIBL securities ltd.
and SIBL investment ltd. The bank opened 10 branches in 2013 to bring more people
under the coverage of banking service.
1.2 Origin of the Study
This report has been prepared as a requirement of my internship program. The report is
based upon Social Islami Bank Limited. This study is very effective to know the
background of the general banking of SIBL. It will also help to evaluate the present
scenario of their banking activity. The SIBL Banking division constantly faces challenges
and meets them by developing new products services to fulfill the specific requirements
of customers. With the progress of time competition among nationalized private
commercial banks is increasing day by day. And banks are emphasizing on more
innovative products and services to the respective customers. In order to survive in the
competitive field of the banking sector all organizations are looking for better service
opportunities to provide their fellow clients. So in this study I tried to find out how they
perform of their daily baking activities, how they faces the newly emerge challenges of
giving service to their client also how effectively they introduced new product for their
client. This paper will give us a comprehensive scenario of general banking activities of
SIBL.
1.3 Scope of the Study
In my internship period, the scope of the work was as vast as I was assigned to work in
every departments of the bank in Maijdee Branch, I have tried to observe and understand
the all banking activities especially general banking activities and other day to day
10
functions perform in this branch. It consists of opening an account, issuing of the check
book, contacting with the customers, outside promotion, inter branch transaction etc.
I also tried to understand the topics prepared by the bank personnel.
1.4 Objectives of the Study
The study is undertaken with the following Objectives:
General Objective:
The primary objective of my report is to know the account opening, bills and
clearing Activities of Social Islami Bank Limited and to fulfil the internship
program requirements to complete the BBA program.
Specific Objective:
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To understand the Islamic Banking system.
To know the strength and weakness of SIBL Maijdee branch
To identify the problems of Social islami Bank Ltd.
To recommend some suggestions to overcome the problems of
accomplishing the General Banking Activities of Social Islami bank Ltd.
1.6 Limitation of the Study
The presented study was not out of limitations. But as an internee it was a great
opportunity for me to know the banking activities in Bangladesh especially of Social
Islami Bank. Some constraints are appended bellow:
 The organization maintains strict confidentiality about their financial and other
information. They are afraid of any type of information leakage to their
competitors. So there was always difficulty to have appropriate information from
them.
 Large scale analysis is not possible due to constraints & restrictions posted by the
banking authority
 The website of SIBL is not updated enough. So the collection of secondary data
was not updated enough.
 This study completely depended on official records and annual reports
 Lack of sufficient books, papers and journals etc.
 In many cases, up to date information may not be available
 Because of the limitation of information, some assumptions were made. So there
may be some unintentional mistake in the report
11
CHAPTER –2
Methodology of the Study
12
2.1 Introduction:
The study requires various types of information of present policies, procedures and
methods of General Banking Operation. This study is based on a theoretical knowledge,
field survey and practical orientation. This is a survey work in the form of research study.
In order to make the Report more meaningful and presentable, two sources of data and
information have been used widely.
2.2 Data Sources:
There are two sources of data. These are as follows:
a) Primary Source
b) Secondary Source
2.3 Data Collection Methods:
The techniques of collecting primary data are not same as the techniques of collecting
secondary data. This report has been prepared on the basis of experience gathered during
the period of internship. For preparing this report, I have also get information from
annual report and website of the Social Islami Bank Ltd. The details of the work plan are
furnished below:
The primary data has been collected through the following ways:
 Direct communication with clients
 Sharing the experience and knowledge of my colleagues
 Practical work exposure on different areas of the branch
The secondary data has been collected from the following sources:
 Annual report of Social Islami Bank Ltd.
 Web site of Social islami Bank Ltd
 Periodical published by Bangladesh bank
 Files and documents of the branch
2.4 Data Analysis
SWOT analysis of Social Islami Bank ( Maijdee Branch):
Strengthens of SIBL
SIBL,Maijdee Branch has a number of strengths include:
13
 Well decorated and air conditioned facilities.
 All activities of the bank are conducted according to Islamic shariah.
 Using up to date software in foreign exchange department that will reduce time
and labor of employee.
 SIBL has a well-diversified pool of human resources, which is composed of
people with high academic background. They are always devoted themselves to
works for better customer service.
 Money counting machine for making cash transaction easy and prompt.
 SIBL has a well-diversified pool of human resources, which is composed of
people with high academic background. They are always devoted themselves to
works for better customer service.
 SIBL provide ATM debit card and nonstop banking facilities.
 One of the profitable Branch in Noakhali.
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Weaknesses of SIBL
SIBL, Maijdee Branch has some weaknesses which include:
Absence of an upgraded website.
SIBL has no SME Center in Maijdee branch.
Sometimes it seemed to me that charges and other fees are very high compared to
other private banks. It frequently creates customer dissatisfaction.
Risk Management system is not strong. The bank has already exposed to a variety
of risks the most important of which are credit risk, market risk and liquidity risk.
Opportunities of SIBL
Opportunities of the SIBL, Maijdee branch which include:
Favorable business climate for commercial banks in the Noakhali region in
comparison with other business.
Regulatory environment favoring private sector development.
SME business for that particular area.
Credit card business.
SIBL, Maijdee Branch can introduce more innovative and modern customer
service.
Foreign remittance is high in Branch area.
Threats of SIBL
Threats of the SIBL,Maijdee branch which include:
Number of potential competitors in those areas increasing day by day.
Recovery of loan is a threat for Social Islami Bank Ltd because the financial
market strength of our country is not so strong
Common attitude of Bangladeshi clients to default.
Competitors in those areas can capture market by offering similar products.
Market pressure for lowering the interest rate.
Bangladesh bank sometimes forced some rules and regulation which is not
sustainable for SIBL, Maijdee Branch
14
CHAPTER –3
Organizational Overview of SIBL
15
2.1 Introduction
Social Islami Bank was established on 5th July 1995 and went on operation on 22nd
November, 1995 as a Second Generation Islami Bank with close co-operation and
assistance of some renowned personalities of the Islamic world. H.E. Dr. Hamid Al
Gabid, Former Secretary General of OIC and Prime Minister of Niger, H.E. Ahmed
M.SalahJamjoom, Former Commerce Minister of Saudi Government, H.E. Prof. Dr.
Ahmad El-Naggar (Egypt) participated in this noble endeavor as sponsor shareholders.
Targeting poverty, Social Islami Bank Ltd. is indeed a concept of 21st century
participatory three-sector-in-one banking model. In the formal sector, it works as an
Islamic participatory Commercial Bank with human face approach to credit and banking
on the profit and loss sharing. It is a non-formal banking with informal finance and credit
package that empowers and humanizes real poor family and creates local income
opportunities and discourages internal migration. It is a development bank intended to
monetize the voluntary sector and management of Waqf, Mosque properties and
introducing cash Waqf system for the first time in the history.
2.2 History of Bank
Social Islami Bank Limited (SIBL) is a banking company registered under the companies
Act 1994 with its head office in City Center, Level: 19-22 90/1, Motijheel Commercial
Area Dhaka-1000. The bank operates as a scheduled bank under a banking license issued
by the Bangladesh Bank, Central Bank of the country. The Bank started its operation
from 22, November 1995. SIBL is a capitalized new generating Bank with an authorized
capital and paid up capital of Taka 585 million in 2007 and also 585 million respectively
as of December 2006. Currently the bank has108 branches in all over the Bangladesh.
The bank under takes all types of banking transaction to support the development of trade
and commerce in the country. SIBL services are also available for the entrepreneurs to set
up new venture and BMRE of industrial units. To provide clientele services in respect of
international trade it has established wide corresponded banking relationship with local
and foreign bank stride and financial interest home and abroad. Since the very inception,
Social Islami Bank Ltd. is working with the philosophy of serving the nationals as an
ideal and unique financial house. Every organization has some objectives of its own. The
prime objective of Social Islami Bank Ltd. is to earn profit throw undertaking the
responsibility of providing financial help for the development of the country’s
commercial and industrial sector. Year 2012 is envisaged as a golden year of SIBL.
Adopting new strategic Business Policy, SIBL will leave no stone unturned to boost
business in all areas of operation to achieve its corporate goals.
2.3 Journey with New Logo
SIBL has changed its brand logo through a colorful function at Cox’s Bazar sea beach.
Bank has passed a successful year 2011 through generating highest business growth in
terms of profit amidst unfavorable market conditions and also set superior service
16
delivery for its customers through implementation of real time on line state of-the-art
banking technology. In its journey towards continuous excellence the bank has decided to
change its logo, the new logo depicts bird’s wing, 9 (nine) feathers, to represent its
comfortable and safe flying in the economic sky by passing the territorial Boundary. The
wings are colored in red in a green background. Red symbolizes the vigor and enthusiasm
of youth and the green symbolizes love for the dear motherland, Bangladesh is a country
of greenery. Moreover 9 (nine) feathers represent- Honesty, Transparency, Efficiency,
Accountability, Reliability, Innovation, Flexibility, Security, and technology flying
towards continuous excellence. In SIBL journey towards Continuous Excellence it takes
pride in their new Logo.
2.4 Overall Operational goals
The key thrusts of the operational goals are as follows:
 Empowering the family of the poor by creating income opportunities as well as
strengthening the family of the rich for a better future generation.
 Achieving sustainable participatory economy, Social Security, and peace for a
society.
2.5 Mission of SIBL
 High quality financial services with the latest technology.
 Fast, accurate and satisfactory customer service.
 Balanced & sustainable growth strategy.
 Optimum return on shareholders’ equity.
 Introducing innovative Islamic banking products.
 Attract and retain high quality human resource.
 Empowering real poor families and create local income opportunities.
 Providing support for social benefit organizations-by way of mobilizing
funds and social services.
2.6 Vision of SIBL
In SIBL journey towards continuous excellence it is striving to become the Country’s
leading Islamic Bank offering one-step service of an wide range of value added products
and services meeting the needs of its customers; conducting its business ethically in
accordance with the laws of Shariah while optimizing best utilization of the most modern
state-of-the-art technological solutions through creation of a pro-active organizational
culture based on sound team spirit, fairness, mutual understanding and pragmatic
leadership always remain open to new ideas and adaptable to the best practices in the
market ensuring recognition and quality banking experience to its customers and deliver
best value to all its stakeholders as well.
17
2.7 Objectives of SIBL:
The objectives of SIBL can be described as follows: The key objectives are:

To humanize corporate finance in the formal sector through participatory market
mechanism with collateral.
 To monetize voluntary sector through participatory financing mainly on joint
ownership basis.
 To integrate these three sectors operational activities of the Bank to various willconceived and well-planned “Social Assignment and Investment Schemes” or
“Social Fund” for making them economically and ethically “transparent” and
“revealed”
The key thrusts of the operational goals are as follows:
 Empowering the family of the poor by creating income opportunities as well as
strengthening the family of the rich for a better future generation.

Achieving sustainable participatory economy, Social Security, and peace for a
society.
2.8 Functions of SIBL
The functions of SIBL are as follows:
 Mobilization of idle resources of the country by accepting Deposits from the
general public.
 Granting Loans and Advances to the individual firms and companies for
activating and developing trade, commerce and industries and other productive
activities in the country.
 To give facilities to the client and shareholders in a systematic way.
 Give encouragement to the people for savings.
 To increase investment.
 To make easy transfer of foreign currency.
 To identify consumer’s demand and fulfill their demand by supplying money.
 To improve economy by borrowing financial facility.
 To assist capital market.
2.9 Products & Services:
Deposits Products
Social Islami Bank Ltd gives special importance on savings. The bank mobilizes deposits
through the operation of following account.
1. Al Wadiah Current Account (AWCA).
2. Mudaraba Hajj Savings Account (MHSA) (1year to 25 Year).
18
3.
4.
5.
6.
7.
8.
Mudaraba Waqf Cash Deposit (MWCD).
Mudaraba Special Savings (MSS) (Pension, 5 years to 10 years).
Mudaraba Muhor Savings Account (MMSA).
Mudaraba Savings Bond (MSB) (5years and 8 years)
Mudaraba Monthly Profit Deposits Scheme (MPDS) 3 years and 5 years.
Mudaraba Term Deposits (MTD) 3 months, 6 months, 12 months, 24 months and
36 months.
9. Mudaraba Savings Deposits (MSD).
10. Mudaraba Special Notice Deposits (MSND).
11. Mudaraba Foreign Currency Deposits (MFCD).
Loan and Advances
1. Secured Overdraft (SOD)
2. Loan (General)
3. House Building Loan (Staff)
4. Demand Loan
5. Transport Loan
6. Industrial Credit
7. House Building Loan (General)
8. Transport Loan (Staff)
9. Cash credit (Hypothecation)
10. Past Due Bills
11. Loan against Trust Receipt (LTR)
Services
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Online Banking
ATM Banking
Lockers
Utility Bills
2.10 Marketing Strategies of SIBL:
To attain the above vision and mission SIBL follow the following Marketing
Strategies:
1
The main strategy of the bank is using Islami Banking System to attract its
market.
2
Providing efficient customer service
3
Maintaining corporate and business ethics
4
Being trusted repository of customers’ and their financial advices
5
Making its products superior and rewarding to the customers
6
Display team spirit and professionalism
7
Sound capital base
8
Enhancement of shareholders wealth
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9 Fulfilling its social commitments by expanding its charitable and humanitarian
activities
10 Providing high quality financial services in export and import trade.
11 Building tight personal relationship with customers and clients.
2.11 Corporate Structure:
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CHAPTER - 4
Analysis of General Banking Activities (Account
opening, Bills and clearing section)
21
4.1 General Banking
Financial institution /intermediary that mediates or stands between ultimate borrowers
and ultimate lenders is knows as banking financial institution. Banks perform this
function in two ways- taking deposits from various areas in different forms and lending
that accumulated amount of money to the potential investors in other different forms.
General Banking department aids in taking deposits and simultaneously provides some
ancillaries services. It provides those customers who come frequently and those
customers who come one time in banking for enjoying ancillary services. In some general
banking activities, there is no relation between banker and customers who will take only
one service form the bank. On the other hand, there are some customers with who bank
are doing its business frequently. It is the department, which provides day-to-day services
to the customers. Every day it receives deposits from the customers and meets their
demand for cash by honoring cheques. It opens new accounts, demit funds, issue bank
drafts and pay orders etc. since bank in confined to provide the service everyday general
banking is also known as retail banking.
4.2 General Features of General Banking
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Issuance of token, Maintenance of subsidiary day Book, writing of day Book,
balancing of Ledger.
Opening of A/C like – Savings A/C, Current A/C, Short Term Deposit A/C,
writing of A/C opening registers and issuance of pass book and cheque Book etc.
Maintenance of current A/C ledgers, deposit ledger and FDR ledger and
operation.
Writing of transfer scroll, statement of current A/C and deposit A/C.
Bills: Outward & inward Bills (OBC & IBC) and clearing.
Remittance: Issuance and payment of DD, TT, PO etc.
Writing of clean cash Book and posting of General Ledger.
Maintenance of charges, suspense and sundry deposit A/C, maintenance of dead
stock and stationery articles registers.
Schedule Telegram and preparation of General ledger A/C statement
22
4.3 General Banking Area
General banking is the starting point of all the banking operations. It is the department,
which provides day-to-day services to the customers. It opens new accounts, remit funds,
issue bank drafts and pay orders etc. Provide customer through quick and sincere services
is the goal of the general banking department. It provides those customers who come
frequently and those customers who come one time in banking for enjoying ancillary
services. In some general banking activities, there is no relation between banker and
customers who will take only one service form bank. On the other hand, there are some
customers with who banks are doing its business frequently. SIBL General banking is
divided into six sections;
I.
Account opening section,
II.
Bills and clearing section,
III.
Remittance section,
IV.
Cash section,
V. Locker Service,
VI.
Closing of an account.
4.4 Account Opening Section
It is said that there is no banker customer relationship, if there is no account of a person
in that bank. By opening an account banker and customer create a contractual
relationship. However, selection of customer for opening an account is very crucial for a
bank.
Procedure and rules to open a new account:
Mudaraba Saving Account (Code No: 134) (Bank Branch Code: 095)
Before opening of a savings Bank Account the following formalities must the completed
by the customers:
i.
Account opening From: To be filled in and signed by each account holder.
ii. Latest passport size photograph (2 copies) for each account holder attested by the
introducer.
23
iii.
iv.
v.
Account payee cheque in favor of the account holder or cash deposit.
Copy of Voter identity card/Ward Commissioner Certificate.
Introduction of account holder (Mandatory): To be signed by introducer with ID
and account number.
vi.
1 (One) copy of nominee’s photograph (attested by the account holder).
vii.
Copy of voter identity card (nominee).
viii. Initial deposit TK. 1000 (One thousand taka only)
After fulfilling above formalities, open an account for the client and provide the customer
with a deposit book and a checkbook.
Al-Wadiah Current account (Individual) – (Code No: 133) (Bank Branch Code:
095)
i.
Account opening From: To be filled in and signed by each account holder.
ii. Latest passport size photograph (2 copies) for each account holder attested by the
introducer.
iii. Attested copy of valid Trade license.
iv.
Attested copy of passport of the proprietor.
v. Company seal and TIN (Tax identification Number) Certificate.
vi.
Copy of Voter identity card.
vii.
Introduction of account holder (Mandatory): To be signed by introducer with ID
and account number.
viii. One copy of nominee’s photograph (attested by the account holder).
Mudaraba Special Notice Account (Code No: 136) (Bank Branch Code: 095)
i.
ii.
iii.
iv.
v.
Any company, business entity, debt of the govt. organization and trust or
any person can open this account.
This account is operated under Mudaraba principle.
Any amount can be withdrawn or transferred to al Wadiah current account
or any other accounts after placing a notice of seven days.
Cheque books are provided for these accounts.
The profit rate is comparatively lower.
24
Deposits Account by SIBL:
Mudaraba Saving Deposits (MSD) (Code No: 134) (Bank Branch Code: 095)
These are profit bearing deposit account. The drawings are restricted in respect of both
the amount of withdrawal and the frequency there of so the payment of interest does not
become any compensating for the banker. Some time the restrictions are ignored against
the depositor’s written confirmation to forgo his claim for interest on the total balance for
the whole month of withdrawal.
Some Special Saving Scheme
i.
ii.
Mudaraba Hajj Saving Scheme
Mudaraba Education Scheme
25
iii. Mudaraba Millionaire Scheme
People of Bangladesh are the followers of Islam. They are mostly interested to make
interest free deposits. Taking these facts into consideration SIBL a joint venture Islami
bank introduced a monthly installment based “Mudaraba Millionaire Scheme”
Mudaraba Monthly Profit Deposit Scheme
The features of this scheme are as follows:
Tk. 1, 00,000, 1, 10,000, 1, 20,000 or 1, 25,000 or any amount multiple can be deposited
under this scheme.
A. The duration of the amount should be for Five years.
B. Profits shall be distributed under this scheme as follows:
 1,00,000 Tk. 900 (Provisional)
 1,10,000 Tk. 1000 (Provisional)
 1,20,000 Tk. 1100 (Provisional )
 1,25,000 Tk. 1150 (Provisional)
C. The payable profit will become due after 1 month of deposit. But the amount will
be deposited to account in the last week of the month.
D. Generally, a depositor cannot withdraw the amount before 5 years. But in
unavoidable circumstance the depositor can withdraw the amount and in that case
the depositor will have to submit the duly filled application form of the scheme.
Mudaraba Term Deposit
The term and condition Mudaraba is same as general Mudaraba excepting one that under
this arrangement the owner of the fund agrees keep the deposit remain with the Islami
bank for a particular time period (3 months/6 months/one year/two year/three years). The
Interest rate followed by SIBL
For 3 month
For 6 month
For 1 Year
For 2 Year
For 3 Years & above
@9
@9
@9
@9
@9
Al-Wadiah Current Deposit (Code No: 133) (Bank Branch Code: 095)
I.
II.
III.
AL WADIAH Current Deposit A/c’s are opened proper introduction with
minimum initial deposit fixed by the Bank.
AL WADIAH Deposit is accepted on AL WADIAH principles which mean al
Amanat with permission to use. According to this principle Bank can use the fund
of the account along with other funds as per Shariah at bank’s own risk. Account
holders will not share any profit/loss.
The Law and regulation of Bangladesh, usual customs and procedures common to
banks in Bangladesh including Islamic Banking Principles shall apply to and
govern the conduct of account opened with the Bank.
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SIBL Young Star Account
Today's youngsters are going to be the future business personalities of the country. That's
why SIBL Young Star account has been introduced with a view to raising savings tendency
among school-going children from childhood.
 The beneficiaries are entitled to daily profit on daily balance, which directly adds
to the account.
 There is no need to keep minimum balance to run the scheme.
 The scheme holders shall be provided annual charge free Debit card and Credit
card of the bank.
 The account holder shall be given attractive gift hampers at the time of opening
account.
 With the help of school authority and the bank, the student can save money at the
institutions in presence of bank’s executives.
 After Young Star account, the student can pay school-fees through balance
transferring from their account.
 SIBL Young Star account holders desiring to achieve higher education in future
would get investment facility from the bank.
Cash WAQF Certificate
 In this case the WAQF concept of Islam has been borrowed by the Islami
bank for deposit mobilization purpose
 The nature of account is donation type.
 The accountholder operate the account for benevolent purposes.
 He can withdraw any amount from the account for personal use or
consumption
 Highest weight age is given to this account in distributing profit.
4.5 Bills and Clearing Section
SIBL Local Office branch performs the bill clearing function through Local office. SIBL
Local office acts as the agent of all SIBL branches for the clearing house of the
Bangladesh Bank. There are two types of cheque which are Inward clearing cheque
 Outward clearing cheque
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A. Inward Cheque
Inward cheques are those ones drawn the respective branch which have been
presented on other banks and will be cleared/honored through the clearing house of
Bangladesh Bank. For example the cheque drawn on SIBL Local Office Branch then
the cheque is called inward cheque of SIBL Local Office Branch.
Account treatment:
Dr.
SL NO.
Particular
01
Customer’s
A/C
Amount
SL NO.
Particular
***
01
Customer’s
A/C
Cr.
Amount
***
B. Outward Cheque:
Outward cheques are those ones drawn on other bank branches which are presented on
the concerned branch for collection through clearing house of Bangladesh Bank. These
cheques are called outward cheques.
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C. Outward bills for Collection (OBC):
By OBC, we mean that those cheques drawn on other which are not within the same
clearing house. Officer gives OBC seal on this type of cheques and later sends a letter to
the manager of the branch of the some bank located in the branch on which cheque has
been drawn. After collection of that bill branch advices the concerned branch in which
cheques has been presented to credit the customer account through Inter Branch Credit
Advice (IBCA).
In absence of the branch of the same bank, officer sends letter to manager of the bank on
which the cheques is drawn. That bank will send pay order in the name of the branch.
This is the procedure of OBC mechanism.
D. Clearing:
The scheduled banks clear the cheques drawn upon one another through the clearing
house. SIBL is a scheduled Bank. According to the Article 37 (2) of Bangladesh Bank
Order, 1972, the banks which are the member of the clearinghouse are called as
Scheduled Banks. This is an arrangement by the central bank where every day the
representative of the member banks gathers to clear the cheques. The place where the
banks meet and settle their dues is called the clearinghouse. The clearinghouse sits for
two times a working day.
The SIBL Local office Br. sends the instruments through Inter Branch Debit Advice
(I.B.D.A). SIBL Local Office acts as an agent in this case. For this, Local Office branch
gives the following entries:
Account treatment:
If the instrument is dishonored, the instrument is returned to the Local Office branch
through I.B.D.A. along with the following entries,
SL NO.
Particular
Amount
SL NO.
Particular
Amount
01
SIBL
General A/C
Account treatment:
SL NO.
Particular
01
Customer’s
A/C
***
01
Customer’s
A/C
***
Amount
SL NO.
Particular
Amount
***
01
SIBL
General A/C
***
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E. Receiving Cheques for Collection:
In SIBL, cheques of its customers are received for collection from other banks. In case of
receiving cheques, following points should be checked very carefully:
 The cheques should not carry a date older than the receiving date for more than 6
months. In that case it will be a ‘stale cheque’ and it will not be allowed for
collection. Again the date of the cheque should not be more than 1 day’s forward
than the receiving date.
 The amount in figures and words in both sides of the pay-in-slip should be same
and it should also be same with the amount mentioned in figures and words in the
cheque.
 The name mentioned in the cheque should be some in both slides of the pay-inslip and it should be the same with the name mentioned in the cheque.
 The cheque must be crossed.
F. Cheque and Crossing
A “Cheque” is a bill of exchange drawn on a specified banker and not expressed to be
payable otherwise than on demand. (According to section-6, Negotiable Instrument Act,
1881).
A cheque may be classified into:
1. An open cheque which can be presented for payment by the holder at the counter
of the drawer’s bank.
2. A crossed cheque which cannot be paid only through a collection banker.
Crossing cheque:
A cheque is said to be crossed when two transverse parallel lines with or without any
words are drawn across the face. Crossing may be general, special or restrictive.
30
CHAPTER - 5
FINDINGS, RECOMMENDATIONS AND
CONCLUTION
31
.
5.1 Findings:
The findings of study are as follows:
 In general banking department they follow the traditional banking system.
 ATM card facility is very poor to compete with other banks
 In general banking department they follow the computerized banking system.
 Account opening form is very much informative. It takes about half an hour to
properly fill the form. Sometimes it is very difficult for the relevant officer to
provide quick service to the client.
 Lengthy process of issuing cheque book, pay order, Bank Draft Job
responsibilities are not specified to each and every employee of this branch.
 Customers are unaware about the moral of Islamic Banking System.
Sometimes they are not familiar with the rules of Islamic Banking.
 Advertising and promotion are the weak points of Social Islami Bank Limited.
SIBL does not have any effective marketing activities.
 Some Political influence problem in Loan sector.
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4.2 Recommendations
Based on my three months observation in the bank, I achieved lot of practical knowledge.
During the internship period I faced some problems and based on that I state the
following recommendations to the bank:
 SIBL, Maijdee Branch should have a SME center.
 The authority of the bank should upgrade the existing marketing strategy to come
to more close to the people.
 The authority of the bank should introduce different credit cards. Also, they have
to concentrate to establish more ATM booths for their customers.
 To easy procurement & procedures in respect of all transaction
 To provide online services all over the country immediately.
 To directly credit the foreign remittances through online banking
 Cash department of Maijdee branch should be more secure.
 In the total banking system it is necessary to implement modern banking process
instead of traditional system.
 SIBL should train its new employees from professional institution like
Bangladesh Bank, Bangladesh Institution of Bank Management (BIBM) etc.
 Social Islami Bank limited should open branches in Greater Patuakhali because
there is no branches of SIBL.
 The bank should give an aggressive advertisement campaign to build up a strong
image and reputation to the potential customers.
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4.3 Conclusions
Through Social Islami Bank ltd. is a new stated Bank but this bank running successfully
and for its good deposit performance the bank occupies 2nd position in the Islamic
Banking Sector. The family empowerment credit program of Social Islami Bank is
gaining ground at the grass root field level in Bangladesh. Family Empowerment
microcredit and micro enterprises.
Program must be designed in a manner so as to make a) finance, b) production, c)
marketing, d) trading, e) local specific survey and research as well as moral integrity in
one package. In SIBL approach, credit conveys the totality in life and clearly linked to
social context and cultural setting in conformity with Shariah. There is a better chance in
provision for social subsidy. This bank expresses its sincere thanks to the government of
the People’s Republic of Bangladesh and Bangladesh Bank for their co-operation and
valuable guidance to the bank. SIBL also takes this opportunity to their valued clients,
patrons, well-wishers, correspondents and the shareholders for their support and
patronization extended during the year under review.
The banking service of the SIBL is getting modernized day – by – day. The customers are
choosing SIBLas best services among other commercial banks. Day by day SIBL
increases their banking systems. They try to give the best service to their customer. SIBL.
Increases its customer service and the image has put excellent effect on consumer minds
its customers are growing rapidly.
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References:
 Annual report of SIBL, 2015
 Confidential report of SIBL, 2013
 Social Islami Bank Ltd. Porichiti-2010
 Economic Trends Published by Bangladesh Bank, 2011
 Islamic Economic Research Bureau “Theory on Islami Banking”-2008
 Islamic Economic Research Bureau “A special issue on Islami Bank”2006
 Staff of Maijdee Branch (SIBL), Noakhali.
 Different Study materials from BIBM.
 “General Banking Division” of Social Islami Bank Limited.
 Several Company Booklets from Social Islami Bank Limited.
 Other Internship reports of Social Islami Bank Limited.
 Shahjalal Islami Bank Limited Annual Report 2015
 Far-East Islami Bank Limited Annual Report 2015
 ICB Islami Bank Limited Annual Report 2015
 Isalmi Bank Bangladesh Limited Annual Report 2015
 Al-Arafah Islami Bank Limited Annual Report 2015
 Website: http://www.siblbd.com/home
 www.facebook.com/SIBLDHAKA
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