Documentos de Académico
Documentos de Profesional
Documentos de Cultura
On
The Investment and Comprehensive Performance Analysis of
commercial Bank. A case Study of Al-Arafah Islami Bank Ltd.
Prepared For:
Abdullah Iftikhar
Lecturer
Southeast University
Prepared By:
Md. Fayshal Hossan Miazy
ID: 2009110000038
Batch: 22nd Major in Finance
Program: BBA
Southeast University
On
Prepared For:
Abdullah Iftikhar
Lecturer
School of Business Studies
Southeast University
Prepared By:
ID# 2009110000038
ProgrAm: - BBA
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Internship Report
on
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Abbreviation
SN
06 A/C Account
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Dedication
&
My respected teachers.
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Letter of Transmittal
12 May, 2012
Abdullah Iftikhar
Lecturer
School Of Business Studies
Southeast University
Subject: Submission of Internship Report.
Dear Sir,
This is my pleasure to submit my internship report on “The Investment and
Comprehensive Performance Analysis of Commercial Bank, A Case study of Al-Arafah
Islami Bank Ltd” It was a great opportunity for me to acquire knowledge and experience in
respect of functions, procedures and operational mechanism of a commercial bank based on
Islami Shariah while working in Al-Arafah Islami Bank, Khilkhet Branch. This report
contains three (03) parts- first part contains organizational overview and the investment of
Al-Arafah Islami Bank, second part contains comprehensive performance analysis among
five Islami Banks (Al-Arafah Islami Bank, Shahjalal Islami Bank, Social Islami Bank, First
Security Islami Bank and Exim Bank), and third or final part contains Research part, which
covered with clients view analysis.
I believe that the knowledge and experience I have gathered during my internship period will
immensely help me in my future professional life.
Yours Sincerely
---------------------------
ID# 2009110000038
Southeast University
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Declaration of Supervisor
This is certifying that Md. Fayshal Hossan Miazy ID: 2009110000038, student of Southeast
University, School of Business BBA program has completed the internship report titled “The
Investment and Comprehensive Performance Analysis of Commercial Bank, A Case
study of Al-Arafah Islami Bank Ltd” successfully under my supervision. To the best of my
knowledge and as per his declaration the internship report is an authentic work on the issue
and has not been submitted to anywhere for awarding any degree.
Supervisor
----------------------
Abdullah Iftikhar
Lecturer
Southeast University
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Declaration of Student
I hereby declare that the report of internship namely “The Investment and Comprehensive
Performance Analysis of Commercial Bank, A Case study of Al-Arafah Islami Bank
Ltd” by me after completing three (03) month of internship in Al-Arafah Islami Bank at
Khilkhet Branch and comprehensive study of the overall Investment & Performance Analysis
of Al-Arafah Islami Bank .
I also declare that this report is my original worked and prepared for academic purpose which
is a part of BBA program.
------------------------------------
ID# 2009110000038
Southeast University
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ACKNOWLEDGEMENT
At first I would like to express my deepest gratitude to Almighty Allah for giving me the
strength and the ability to finish the task and submit the internship report within the planned
time. Then I am very much grateful to the Al-Arafah Islami Bank Limited (AIBL) Khilkhet
Branch for providing me the opportunity to complete my internship.
First of all I am deeply indebted to our honorable Dean Prof. Sirajuddaula Shaheen, then my
Internship Supervisor Abdullah Iftekhar Lecturer, School of Business Studies, Southeast
University for his whole hearted supervision to me during Internship period. Without his
support and encouragement this Internship report I can’t submit it due time.
My heartiest gratitude goes to Mr. Md. Sharif Chowdhury, Assistant Vice-President &
Manager of Al-Arafah Islami Bank Limited (AIBL), Khilkhet Branch for giving me
permission for my internship in his organization & valuable advice and suggestions to
complete the report in an appropriate manner.
My special thanks to Mr. Shah Alam, PO & second manager AIBL, Khilkhet Branch and also
grateful to Mr. Kazi Md. Abul Hashem PO, Mr. Md. Jasim Uddin, Investment In charge,
Nazmul Senior Field officer, Omar Faruq, Md. Shohel & Ibrahim Khalil (Executive Officer)
for providing me assistance, provide necessary information, and advice which can help me to
complete my internship report.
I am also grateful to all the staffs and all the officers of the Al-Arafah Islami Bank Limited
(AIBL), Khilkhet Branch.
Finally I would like thank my all friends, honorable Teachers, my respected Parents & other
family members for giving me help in every stage.
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Executive Summary
Investment is the main part of the bank. This report contains handy information about
investment of profit base bank. The first chapter of this report is introduction where contain
statement of the profit, objective, methodology, limitation of the report. In the second
chapter introduces the overview of AIBL introduces background, vision, mission, board of
director, management structure of AIBL shariah board of the bank AIBL, special feature of
AIBL and Al-Arafha Islamic Bank limited micro finance. In the third chapter focused all
about investment of AIBL. Invest by mainly three mechanisms which describe in
theoretical background. There are two types of investment. Sector –wise investment &
Mode-wise investment. They are Bai-mechanism, Leasing mechanism & Share mechanism.
AIBL commonly Bai-mode. Sometimes they use Leasing-mechanism. It is the discussion
part about various special terms what I use in this report and various mode of investment.
They also invested in Household Durable Scheme, Real Estate Investment Program etc.
The fourth chapter is the main part where includes product and services of AIBL. In this
chapter give briefly description about all product and services of AIBL. In this part I am
hardly try to all information about product and services of Al-Arafah Islamic bank
including deposit product of AIBL, financial product, account operation of AIBL, the
functions of AIBL, online general banking service and other activities of AIBL. AIBL on
investment, such as the problems of Mudaraba is lack of govt. support, uncertain cost of
capital, the problems of Musharaka lack of expertise persons, lack of legal frame –work of
Islami Banking in Bangladesh. The problem of Ijarah is: disposing the asset, when the asset
is no longer be needed, uncertainty about the total life of the asset etc. AIBL should initiate
different investment modes according to diverse needs of clients by conducting huge
research and study etc.
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Table of Contents
Chapter Particulars Page
No.
Introduction 01-08
1.1Introduction 01
1.7 Sampling 05
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1.9 Limitations of the study 07-08
2.4.1 Vision 12
2.7 Commitments 14
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2.18 SHARIAH AUDITING 24
3.1 Investment 33
3.5.1 Bai-Murabaha 36
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3.7.2 Musharaka 40
3.8 Others 41
3.8.1 Quard 41
Performance Analysis 63
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4.1 Theoretical Review 64
References 143
Appendix 144-157
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CHAPTER-1
INTRODUCTION
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1.1 Introduction
The term “Islamic banking” refers to a system of banking or banking activity that is
consistent with Islamic law (Shariah) principles and guided by Islamic economics. In
particular, Islamic law prohibits usury, the collection and payment of interest, also commonly
called riba in Islamic discourse. In addition, Islamic law prohibits investing in businesses that
are considered unlawful, or haraam (such as businesses that sell alcohol or pork, or
businesses that produce media such as gossip columns or pornography, which are contrary to
Islamic values).
Islamic banking has the same purpose as conventional banking: to make money for the
banking institute by lending out capital. But that is not the sole purpose either. The basic
principle of Islamic banking is based on risk-sharing which is a component of trade rather
than risk-transfer which is seen in conventional banking. Islamic banking introduces concepts
such as profit sharing (Mudharabah), safekeeping (Wadiah), joint venture (Musharakah),
cost plus (Murabahah), and leasing (Ijar).
In an Islamic mortgage transaction, instead of lending the buyer money to purchase the item,
a bank might buy the item itself from the seller, and re-sell it to the buyer at a profit, while
allowing the buyer to pay the bank in installments. The goods or land is registered to the
name of the buyer from the start of the transaction. This arrangement is called Murabahah.
An innovative approach applied by some banks for home loans, called Musharaka al-
Mutanaqisa, allows for a floating rate in the form of rental. The bank and borrower form a
partnership entity, both providing capital at an agreed percentage to purchase the property.
The partnership entity then rents out the property to the borrower and charges rent. The bank
and the borrower will then share the proceeds from this rent based on the current equity share
of the partnership.
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1.2 Background of the Report:
A develop banking sector plays a vital role for financial stability of a country. In the BBA
program, the internship is one of the vital parts, which has to be done by every student .the
internship program provides an opportunity for the students to minimize the gap between
theoretical and practical knowledge and will help in practical life. I got this great opportunity
to perform my internship program in the Al-Arafah Islami Bank Ltd. I have completed
internship program based on theoretical and practical knowledge.
Through this report an individual can expect to have a good knowledge about the service
quality between the Supporting Desk Officers and Front Desk Officers (CRO). I have tried
my level best to put more emphasis on the SME loan and the service quality level between
the Front Desk Officers and the Supporting Desk Officers since it was the topic of my
internship program. This report is to be used only for the academic purpose. I have collected
all the necessary and relevant data from various primary, secondary and tertiary sources.
After three months long hard labor, it has become possible for me to make the report
comprehensive and factual. The data is truly and strictly confidential and no one can use its
components in full or partial. I would like to give thanks to everyone who has helped and
encouraged me in the process of preparing this report.
The BBA internship program is a mandatory requirement for the students who are graduating
from the BBA programme of Southeast University, Department of Business Administration.
In the internship program, I was attached to a host organization named ' Al-Arafah Islami
Bank Ltd ' Khilkhet branch for 12 weeks. During this period I learned how the host
organization works with the help of the internal supervisor. As a result I have decided to
make a report on "The Investment and Comprehensive Financial Performance Analysis
of Al-Arafah Islami Bank Ltd ".
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1.4 Objective of the report
The objective of this study is to have a clear concept and some practical experience about
Financial Statement Analysis Systems of an organization. However, we had some textbook
knowledge but had little in real life, practice so ever.
This report is designed to know more about the overall banking Systems of the United
Commercial Bank Limited and analyze the ratio of this organization and identify the financial
condition of this organization. In addition, the study seeks to achieve the following
objectives:
To find out what are the major factors that hamper satisfaction among General
banking service in AIBL.
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To make a study of the facts in order to arrive at certain conclusion about overall
banking operation.
Identify the main objectives of AIBL Investment Disbursement.
To find out the sector in which AIBL provides Investment.
To evaluate financial affairs of the Bank
To visualize the quantitative and qualitative aspects of AIBL
To identify policy recommendations for further improvement
To evaluate the performance of AIBL with others four Islami bank.
The report will be limited to the level of customer satisfaction in the investment and
performance analysis of AIBL. The focus of this report will be only on the investment and
financial performance analysis of AIBL. The report is developed on the basis of my work in
general banking with AIBL, Khilkhet Branch. In spite of limitation I also got some facility to
complete my internship report. The employees whose held a responsible post in the entire
department helped me lot. They gave me all essential data and conversation with me. My
university internship supervisor also helped me a lot. He gave me a guidelines how to prepare
my report more attractive and perfect. This bank has given me the opportunity to observe the
banking environment for the first time indeed. I got an opportunity to gather experience by
working in the different departments of the branch under the supervision of different
departmental heads.
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1.6 Methodology of the study
I have got all the relevant information from my working experience with AIBL, their Annual
report, some circular, various brochures, AIBL web site and such. Some information is taken
from some of my friends.
The primary data of this report is the information, which is gathered from
AIBL while I worked with them.
The secondary data of this report are collected from AIBL Annual report, and
also some reports from which I got idea about the way of writing a report.
1.7 SAMPLING:
1.7.1 POPULATION:
The population in the research is mainly the branch customer and employees this population
has been selected mainly because we are conducting the survey on the perception about the
matter amongst the branch customer and employees.
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1.7.2 THE SAMPLE UNITS:
The sampling unit in case of this research consists of the branch customer and employees
As a student, I have learned about a bank; I also have learned the report writing, as a great
deal of theory is included in this report. It will be also benefited for the people who are
interested to know about AIBL.
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1.9 Limitations of the study
The present 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 AL-ARAFAH-ISLAMI Bank.
Some constraints are appended bellow:
The main limitation for conducting this report is time limitation and resources. Three months
is not enough to understand all the activities of a bank and how they handle their clients. Lack
of experience has also acted a constraint for the exploration of the topic.
Limitation of time was one of the most important factors to collect data. A longer time
period would have ensured a much better result for the study findings.
Every organization has its own secrecy that is not revealed to others. While collecting
data i.e. interviewing the credit officials they did not discuss much information for the
sake of confidentiality of the Bank.
Due to lack of experience, there is a chance of having some mistake in the report
though best effort has been applied to avoid any kind of mistake.
Lack of depth of knowledge, lack of experience in collecting information and
analytical ability for writing such report.
There were some misunderstanding between me and the bank officials while
searching the some required information.
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CHAPTER-2
ORGANIZATIONAL
OVERVIEW
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2.1 Organizational Overview of Al-Arafah Islami Bank Ltd
Al-Arafah Islami Bank Ltd. as the name implies a newly formed commercial bank in
Bangladesh. It has been incorporated in Dhaka, Bangladesh as a public limited company and
its Head Office of the Bank is located at, 36, Dilkusha(6-9 Floor) C/A Dhaka-1000,
Bangladesh C/A, Dhaka- 1000.
In the world of consumerism the business organization of the world strive for the consumers
satisfaction as a number one business strategy whatever may be the product of the
organization, either service or non service. Service is the product of bank. There is a saying
that customer service starts rights right from the stairs of the bank building. The guard at the
door is first person pep resents of the bank, receives a customer with wishes in smiling face.
Al Arafah Islami Bank Ltd was established (registered) as a private limited company, under
the Company Act, 1994 on 18 June 1995 for providing modern banking system based on Al-
Qur’an and Sunnah. The inaugural ceremony of Al-Arafa Islami Bank Ltd (AIBL) took place
on 27 September 1995and AIBL started journey with 5 branches. Now AIBL operates 92
branches in Bangladesh.[1]
Al-Arafah Islami Bank is an interest free Shariah Bank of Bangladesh rendering all types of
commercial banking services under the regulation of the Bank Company Act, 1991. The
Bank conducts its business on the principles of Musaraka, Bai‑Murabaha, Bai‑Muazzal and
Hire Purchase transactions approved by Bangladesh Bank. Naturally, its modes and
operations are substantially different from those of other
conventional commercial banks. There is a Shariah Council in the Bank who maintains
constant vigilance to ensure that the activities of the Bank are being conducted on the
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precepts of Islam. All activities of the Bank are conducted according to Islamic Shariah
where profit is the legal alternative to interest.
With the objective of achieving success here & hereafter by pursuing the way directed by
Allah and the path shown by His Rasul (SM), Al Arafah Islami Bank Ltd was established
(registered) as a private limited company on 18 June 1995. The inaugural ceremony took
place on 27 September 1995. The authorized capital of the Bank is Tk.5000.00 million and
the paid up capital is Tk. 4677.28 million as on 31.12.2010. Renowned Islamic Scholars and
pious businessmen of the country are the sponsors of the Bank. 100% of paid up capital is
being owned by indigenous shareholders.
The equity of the bank stood at Tk. 9647.45 million as on 31 December 2010, the manpower
was 1711 and the number of shareholders was 49,386. It has achieved a continuous profit and
declared a good dividend over the years. High quality customer service through the
integration of modern technology and new products is the tool of the bank to achieve success.
The bank has a diverse array of carefully tailored products and services to satisfy customer
needs.
The Bank is committed to contribute significantly to the national economy. It has made a
positive contribution towards the socio economic development of the country with 78
branches of which 21 is AD throughout the country.
Since its establishment, AIBL opened 5 branches in 1995, 5 in 1996,10 in 1997, 10 in 1998, 5
in 1999, 2 in 2000, 3 in 2001, 1 in 2005, & 5 in 2006 i.e. at the end of 2006 the Bank Branch
reaches to 46.Total number of employees of the Bank was 771 in 1995 and reached to 912 in
2006.
Al-Arafah Islami Bank Ltd. has 101 branches and a total of 2500 employees the authorized
capital of the Bank is Tk.5000.00 million and the paid up capital is Tk. 4677.28 million as on
(31.December.2010). Renowned Islamic Scholars and pious businessmen of the country are
the sponsors of the Bank. 100% of paid up capital is being owned by indigenous
shareholders.
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Al-Arafah Islami Bank Ltd. was established not only to earn profit and to develop economy
of the country but also it had an ultimate goal to get reward in the Heaven by banning interest
in business. Since its commencement the Bank has been trying to achieve this goal. The
Islam loving people specially who are not interested with interest, should help this Bank
giving deposit and taking investment from this Bank.
2.4.1 Vision
2.4.2 Mission
From time immemorial Banks principally did the function of moneylenders or “Mohajans”
but the function and scope of modern banking are now-a-days very wide and different. They
accept deposits and lend money like their ancestors, nevertheless, their role as catalytic agent
of economic development encompassing wide range of services is very important. Business
commerce and industries in modern times cannot go without banks. There are people
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interested to abide by the injunctions of religion in all sphere of life including economic
activities. Human being is value oriented And social science is not value neutral. Al arafah
islami bank believes in moral and material development simultaneously. Interest or Usury has
not been appreciated and accepted by the tawrat of Prophet Moses, the Bible of Prophet Jesus
and the Quran of Hazarat Muhammad (SM). Effort are there to do banking without interest
Al Arafa islami bank limited avoids interest in all its transactions and provides all available
modern banking services to its client and want to contribute in both moral and material
development of human being. No sustainable material well being is possible without spiritual
development of mankind. Only material well being should not be the objective of
development. Socio economic justice and brotherhood can be implemented better in a God-
fearing society.
2.7 Commitments
Ours is a customer focused modern Islamic Banking sound and steady growth in both
mobilizing deposit and making quality Investment to keep our position as a leading
Islami bank in Bangladesh.
To deliver financial services with the touch of our heart to retail, small and medium
scale enterprises, as well as corporate clients through our branches across the country.
Our business initiatives are designed to match the changing trade & industrial needs of
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the clients.
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Profit Earning Ratio 4.89
Dividend per share 15.5% 26.00% 35% 20% 30%
Bonus
No. of Shareholders 5379 5402 4487 12013 10664
Number of Employees 803 771 912 1033 1080
Number of Branches 40 41 46 46 50
Manpower per Branch 20 19 20 23
For customers-
To become most caring Bank- by providing the most courteous and efficient service in every
area of our business.
For employees-
By promoting the well- being of the members of the staff.
For our shareholders-
By ensuring fair return on their investment through generating stable profit.
For our community-
By assuming our role as a social responsible corporate entity in a tangible manner through
close adherence to national policies.
Al-Arafah Islami Bank is singular in every positive aspect. The Bank provides a bunch of
state-of-art banking services within the wide bracket of shariah. It is unique with its products,
strict with its principle and uncompromising with its honesty. Here are some special features
of AIBL that make it notable in Islami banking sector:
All activities of the bank are conducted according to Islamic Shariah where profit is
the legal alternative to interest.
The bank‟s investment policy follows different modes approved by Islamic shariah
based on the Quran and Sunnah.
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The bank is committed towards establishing welfare oriented banking system and
creates employment opportunities.
According to the need and demand of the society and the country as a whole the bank
invests money to different „Halal‟ business. The bank participates in different
activities aiming at creating jobs, implementing development projects of the
government and creating infrastructure.
The bank is committed to establish an economic system resulting in social justice and
equitable distribution of wealth. It is committed to bring about changes in the
underdeveloped rural areas for ensuring balanced socio economic development of the
country through micro credit program and financing of SMES as well.
According to Mudaraba system, the depositors ate the partners of the investment
income of the bank. About 70% of the investment income is distributed among the
Mudaraba depositors.
To render improved services to the clients imbued with Islamic spirit of brotherhood,
peace and fraternity and by developing an institutional cohesion.
The bank is contributing to economic and philanthropic activities. AIBL English
Medium Madrasah and AIBL library patronize by the Bank are two such examples.
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2.11 Board of Directors of AIBL:
Alhajj Nazmul Ahsan Khaled Alhajj Abdul Malek Mollah Alhajj Hafez Md. Enayetullah
Director Director Director
Alhajj Abu Naser Mohammad Alhajj Abdus Salam Alhajj Niaz Ahmed
Yeahea Director Director
Director
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Engr. Kh. Mesbahuddin Ahmed Mohammed Emadur Rahman Md. Rafiqul Islam
Director Director Director
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2.12 Management of AIBL
Ekramul Hoque
Managing Director
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::: Executive Vice President :::
Shariah Board
Scholars of high repute with extensive experience in law, economics and banking systems and
specialising in law and finance as prescribed by Islamic Shariah make up the AIBL's Fatwa &
Shariah Supervision Board. The Board is appointed by the bank's Board of Directors. The Shariah
Board supervises the development and creation of innovative Shariah -compliant investment and
financing products and services. The Board is empowered to issue fatwas on any matter proposed
to it by different business units of the bank. The Shariah auditors ensure that all the transactions are
carried out in strict compliance to Islamic principles of banking. This framework along with a
stringent compliance to rules has made AIBL the pioneering organization to practice Islamic
finance in true letter and spirit. The name AIBL has come to signify innovation, financial
dynamism, leadership and above all a complete assurance that all the transactions are free from riba
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(interest).
Badiur Rahman
Member (By Holding of Position)
The Fatwa & Shariah Supervision Board oversees the application of different aspects of Shariah in
the Bank. It also ensures that all transactions are in strict compliance with the right of contradicting
(fatwa) any violating procedures, if found. The Board of Directors is obligated to obey the fatwas,
irrespective of whether a unanimous or a majority consensus secured the decision (clause ---- of the
Bank’s Memorandum & Articles of Association).
Board meetings are held periodically or whenever the need arises. The rights of the Board are
enshrined in Article Seven o the Bank's Memorandum & Articles of Association (Clauses).
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To devote time and effort to devising more Shariah -compliant transactional procedures,
templates and banking products that enable the Bank to adapt to market trends while
maintaining a high competitive edge in deposit procedures, investments, and banking
services. At the same time, the Board gives its opinion on proposed new templates, and
banking transactions.
Analyzing unprecedented situations that are not covered by fatwa, in the Bank's
transactional procedures or those reported by different departments, branches and even
the customers. This is to ensure Shariah compliance before the Bank develops any new
products or implements any new procedure.
Analyzing contracts and agreements concerning the Bank's transactions, as submitted by
the Chairman of the Board of Directors or any department/branch within the bank or
requested by the Board itself so that Shariah compliance can be evaluated and
maintained.
Ensuring Shariah compliance in the implementation of all banking transactions and
correcting any breaches.
Analyzing administrative decisions, issues and matters that require the Board's approval.
Supervising Shariah training programmes for the Bank's staff.
Preparing an annual report in the Bank's balance sheet with respect to its Shariah
compliance.
The Fatwa & Shariah Supervision Board submits a complete annual report for the Board of
Director, summarizing all the issues referred to the Board, as well as its opinion on the
Bank's transactional procedures.
The Clause ---- of the Bank's Memorandum & Articles of Association requires the Board of
Directors to appoint a Shariah Supervisor, responsible for monitoring all the Bank's
transactional procedures and assuring Shariah compliance.
Also the General Secretary of the Fatwa & Shariah Supervision Board, the Shariah
Supervisor handles queries about the Bank's administration from staff members,
shareholders, depositors and customers, liaises with the Shariah auditors and provides them
with guidance. He submits reports and suggestions to the Fatwa & Shariah Supervision Board
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and to the Chairman of the Board of Directors. The position also calls for participation in the
Bank's training programmes.
The supervisory function forms a part of the Shariah Supervision procedures, its main task
being to check Shariah compliance under the guidance of the Shariah Supervisor. The
auditors continuously review the Bank's transactional procedures to ensure adherence to the
framework created by the Fatwa & Shariah Supervision Board. The Shariah auditors submit
periodic reports to the Shariah Supervisor so as to monitor and maintain Shariah compliance.
01. Head Office 02. Motijheel Branch 03. Moulvi Bazar Branch
SWIFT Code SWIFT Code SWIFT Code
ALAR BD DH ALAR BD DH 066 ALAR BD DH 067
04. Nawabpur Road Branch 05. Corporate Branch 06. VIP Road Branch
SWIFT Code SWIFT Code SWIFT Code
ALAR BD DH 074 ALAR BD DH 075 ALAR BD DH 077
10. Khatungong Branch 11. Jubilee Road Branch 12. Khulna Branch
SWIFT Code SWIFT Code SWIFT Code
ALAR BD DH 072 ALAR BD DH 076 ALAR BD DH 068
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13. Rajshahi Branch 14. Laldighirpar Branch 15. Saidpur Branch
SWIFT Code SWIFT Code SWIFT Code
ALAR BD DH 073 ALAR BD DH 070 ALAR BD DH 078
16. Dilkusha Branch 17. New Elephant Road 18. Uttara Model Town Branch
Branch
SWIFT Code SWIFT Code
ALAR BD DH 080 SWIFT Code ALAR BD DH 082
ALAR BD DH 081
19. Jatrabari Branch 20. Dhanmondi Branch 21. North South Road Branch
SWIFT Code SWIFT Code SWIFT Code
ALAR BD DH 083 ALAR BD DH 084 ALAR BD DH 085
The AIBL's library houses a vast collection of more than 4,000 books on Islamic Fiqh, law,
economy, banking and Shariah , The library was primarily established with the aim of serving
the Fatwa & Shariah Supervision Board's research team and the AIBL staff. The facility is
also accessible to the bank’s customers, researchers and students of higher education.
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philanthropic activities.
Al-Arafah Islamic International School & College has been established by the Al-Arafah Bank
Foundation with a view to building next generation according to the ideals of peace and equality
of Islam and to establishing banking and other aspects of life in the way of Islam. The prime aim
of this Islamic International School & College is to contribute towards building human resource
and in the broader sense to ensure human welfare. With the view Al-Arafah Islami Bank
Foundation has established Al-Arafah Islamic International School & College at Dhanmondi in
1998. Such institution upto O level of its kind is for the first time in Bangladesh.
Al-Arafah Islami Bank Limited opened its khilkhet branch 29-11-2010 to cover the huge &
prospective customer from the area of khilkhet. Md. Sharif Chowdhury is the Assistant vice
president (AVP) & he is the manager of khilkhet branch. It has a large office which can
accommodate good number of customer comfortably. This branch doesn’t deal large foreign
exchange transaction. The branch has efficient human resources that can meet up customer’s
needs. Order wise work is distributed properly.
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2.23 Organogram of Al-Arafah Islami Bank Ltd. Khilkhet Branch, Dhaka
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2.24 Operating activities of Khilkhet branch
General banking activities is the heart of banking. Here money collection procedure occurs.
General banking activities are discussed briefly as below:
a. Cash Receive: Cash section is include general banking activities. Cash section is very
important for deposit mobilization.
b. Cash Payment: General banking section close various kinds account and cash payment is
made from this section.
c. A/c opening: In this section various kinds of account is opened. Those are Mudaraba A/c,
Al-wadia Current A/c, Mudaraba sort notice deposit A/c Mudaraba terms deposit A/c,
Installment terms deposit A/c, Hajj deposit A/c etc.
d. Cheque Issue: General banking section issue cheque book. Chequebook is very important
for money transaction.
f. Clearing activities: In this section all clearing instrument send to Bangladesh Bank /
Sonali Bank Clearing house and after completing clearing process clearing amount of are
credit to concerned accounts.
g. Deposit Mobilization: Deposit mobilization is the main function of general banking
section. Actually all section are engaged in deposit mobilization but deposit mobilization
procedure are done this section. Mainly deposit are collection from savings surplus units
(SSU) and loan or credit is disbursed to saving deficit units (SDUS).
h. Bill Collection: AIBL collect bill on behalf on various institution or enterprise from their
customers. For example electric bill, Telephone bill, Gas bill, Mobile bill etc.
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i. Investment Activities: Almighty creature said in his holy Quran that “Ahallahul baia and
harramahu Riba” that means Allah permitted trading and forbidden interest” Islamic bank is a
financial institution whose statutes rules and procedures expressly state its commitment to the
principles of islamic shariah and to the banning of the receipts and payment of interest in on
any of its operations.
So Islami bank always avoids interest and emphasizes on profit business. Islami bank
financing product is Murabaha, Bai-Muazzal, Ijara, Salam, and Istisna, Out of these various
debt based financing products. The most popular are Murabaha and Bai-Muazzal.
Disbursed financed to the business firms and persons: The most important
function of an Islami bank is disbursed finance to industries and business firm or
persons.
Disbursed leased finance to various industries: Islami bank disbursed leased
finance to various industries. Lease finance may be two types operating lease and
financial lease.
Issue bank Guarantee: AIBL issue bank guarantee on behalf or its clients. In this
way banks helps a business firm to run their business smoothly.
Foreign exchange activities:
Foreign exchange is another important department for banking service the functions of
foreign exchange section are as below:
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all over the world. Its keeps correspondence with foreign banks. Foreign exchange or
foreign transaction done through these nostro and vostro A/c.
Others activities:
Banks play important role for development of a country. Others function of a bank are as
below:
Provide information to Bangladesh bank and others institution and that information is
important for policy making.
To help the Bangladesh Bank and govt. for implementation fiscal and monitory
policy.
Provide valuable information as well as opinion to its clients for their business firm.
Providing local facilities to safe keeping peoples valuable assets.
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CHAPTER-3
THEORITICAL
FRAMEWORK FOR
INVESTMENT
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3.1 Investment:
Investment means transaction between two parties in which one (the creditor or lender)
supplies money, goods, services or securities in return for a promised future payment by the
other (the debtor or borrower). Such transaction normally includes the payment of interest to
the lender but AL-Arafah Islami Bank Limited always avoids interest and emphasizes on
profit-based business. Investment may be extended by the public or private institutions to
finance business activities, agricultural operation, consumer expenditures or government
projects. "Investment" means any such modes of financing which Islamic Bank does in
accordance with principles of Shariah or as per the Shariah approved modes like Mudaraba,
Musharaka, Bai-Murabaha, Bai-Muajjal, Istisna, Lease, Hire-purchase under Shirkatul Melk,
etc.
AL-ARAFAH ISLAMI Bank Ltd is a new generation bank. It is committed to provide high
quality financial services/products to contribute to the growth of GDP of the country through
stimulating trade & commerce, accelerating the pace of industrialization, boosting up export,
creating employment opportunity for the educated youth, poverty alleviation, raising standard
of living of limited income group and over all sustainable socio-economic development of the
country. In achieving the aforesaid objective of the bank, investment operation of the bank is
of paramount importance as the greatest share of total revenue of the band is generated from
it, maximum risk is centered in it and even the very existence of band depends on prudent
management of its investment portfolio. The failure of a commercial bank is usually
associated with the problem in investment portfolio and is less often the result of shrinkage in
the value of other assets. As such investment portfolio not only features dominant in the
assets structure, it is critically important to the success of the bank also. In view of the above
this investment policy and control guidelines of the bank has been prepared which is subject
to amendment, revision, readjustment and refinement from time to time as may be warranted
by the change of circumstances due to passage of time to suite the requirement of the bank.
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investment requirement before recommending any new proposal.
There after all investment at least annually at the time of renewal and enhancement. The
assessment procedure shall include the following issues:
1. Mode of Investment
2. Investment limit
3. Purpose of investment
4. Rate of profit
5. Primary Security
6. Collateral Security- its acceptability, its coverage, its control and genuine etc
7. Margin
8. Repayment capacity and repayment schedule
9. Period of investment
10.Other terms and conditions in case of necessity.
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3.4 Mode of Investment:
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3.5 Trading modes (Bai-Mechanism)
3.5.1 Bai-Murabaha
Bai-Murabaha may be defined as Contractual buying and selling at a mark-up profit. In this
case, the client requests the Bank to purchase certain goods for him. The Bank purchases the
goods as per specification and requirement of the client. The client receives the goods on
payment of the price which includes mark-up profit as per contract. Under this mode of
investment the purchase/ cost price and profit are to be disclosed separately.
Bai-Muajjal is a contract between a buyer and a seller under which the seller sells certain
specific goods (permissible under Shariah and Law of the Country), to the buyer at an agreed
fixed price payable at a certain fixed future date in lump sum or within a fixed period by
fixed installments. The seller may also sell the goods purchased by him as per order and
specification of the buyer.
In Bank's perspective, Bai-Muajjal is treated as a contract between the Bank and the Client
under which the bank sells to the Client certain specified goods, purchased as per order and
specification of the Client at an agreed price payable within a fixed future date in lump sum
or by fixed installment.
Bai- Salam means advance purchase. It is a mode of business under which the buyer pays the
price of the goods in advance on the condition that the goods would be supplied / delivered at
a particular future time. The seller supplies the goods within the fixed time.
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3.5.4 Bai-Istishna
A contract executed between a buyer and a seller under which the seller pledges to
manufacture and supply certain goods according to specification of the buyer is called Istisna.
An Istisna agreement is executed when a manufacturer or a factory owner accepts a proposal
placed to him by a person or an Institution to produce/manufacture certain goods for the latter
at a certain negotiated price.
Here, the person giving the order is called Mustasni, the receiver of the order is called Sani
and the goods manufactured as per order is called Masnu.
An order placed for manufacturing or producing those goods which under prevailing customs
and practice are produced or manufactured will be treated as Istisna contract.
Under this mode, the bank purchases vehicles, machineries and instruments, building,
apartment etc. and allowed clients to use those on payment of fixed rents in installments with
the ultimate objective to sell the asset to the client at the end of the rental period . The client
acquires the ownership/ title of the assets/ properties subject to full payment/ adjustment of
all the installments.
Definition
Hire purchase under shirkatul Melk is a special type of contract which has been developed
through practice. Actually, it is a synthesis of three contracts: Shirkat, Ijarah and sale. Shirkat
means partnership. Shirkatul Melk means share an ownership. When two or more persons
supply equity, purchase an asset, own the same jointly, and share the benefit as per agreement
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and bear the loss in proportion to their respective equity, the contract is called Shirkatul
contract.
Thus Hire Purchase under Shirkatul Melk Agreement has got three stages:
Hire Purchase under Shirkatul Melk through gradually transfer (sale) of legal
title/ownership of the hired asset/property
Under this type certain .asset / property' is purchased with equal or unequal equity
participation and owned jointly by the parties -the Bank and the Client. The Bank's share /
portion of the asset is hired out to tile Client partner against fixed rent/rentals per unit of time
for a fixed period with a promise that the Hire Bank will sell or transfer the ownership of its
portion to the Client Hirer gradually part by part in proportion to the consideration paid. So
that the Hire's portion of the asset on payment of the total price at the end of the hire period.
Under this system the total price of the hired property / asset should be determined and
divided over the period of hire contract (per unit of time) so that the Hirer in addition to the
payment of fixed rent /rentals may pay gradually the proportionate consideration of the total
price of the hired property or asset to acquire proportionate ownership of the same part by,
part and become full owner of the hired asset at the end of the hire period.
It should be noted that there should be a separate sale contract for payment / acquisition of
each share (per unit of time as per hire deal) / part of asset sold to the Hirer and the amount of
rent should be decreased proportionately with decrease of Hire's ownership and increase of
Hirer's ownership on the property/asset.
If, for any reason, the hire contract is revoked prior to the payment I transfer of full title to the
Hirer, the Hirer will share that part of the title to the hired property which has been
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transferred to him against payment made by him and the remaining part will be shared by the
Hire Bank. If any loss arises to the Bank after the sale of Bank's share to the property / asset
that shall be recouped from the Client / Client's security. In our Bank, we shall be following
this type of Sale Contract in Hire Purchase under Shirkalul Melk.
3.7.1 Mudaraba
Definition
It is a from of partnership where one party provides the fund while the other provide the
expertise, labor and the letter referred to at the Mudarib any profits accrued are shared
between the two parties on a pre –agreed basis, while capital loss in exclusively born by the
partner providing the capital.
Important Features:
Bank supplies capital as Sahib- al –Mall and client invest if in the business with his
experience.
The client maintains administration and management.
Profit is divided as per agreement.
Bank bears the actual loss alone.
Client cannot take another investment for that specific business without the
permission of the Bank.
3.7.2 Musharaka
The term Shirkat and Musharakah have been derived from Arabic words “Shairkah” and
“Sharika.” The word shirkah means a partnership between more than one partner. Thus the
ward “Musharaka” and “Shirkat” means a partnership established between two or more
partners for purpose of a commercial venture participate both in the capital and management
where the profit may be shared between the partners as per agreed upon ratio and the loss. If
any incurred, is to be borne by the partners at per capital /equity ratio.
In case of investment “Musharaka” meaning a partnership between the bank and the client for
a particular business in which both the bank and client provide capital at an agreed upon ratio
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and bear the loss, if any in proportion to their respective equity. Bank may move itself with
the selected client for conducting any Shariah permissible business under Musharaka mode.
Important Features:
3.8 Others
3.8.1 Quard
It is a mode to provide financial assistance/ loan with the stipulation to return the
principal amount in the future without any increase thereon.
The importers apply for investment facility against imported goods after shipment for
payment of the invoice values of the goods to the seller/supplier including custom duty, VAT
and other expenses. In such a case, Islamic banks allow a Bai-Murabaha investment facility
under single deal concept. It is so called as the Letter of Credit. Bills and the handling of
Post-shipment are settled under one agreement while opening the letter of credit for
importing the goods.
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3.9 PROCESS OF INVESTMENT
PROCESS OF INVESTMENT
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3.10 Investment Growth
Investment &
Advances 106764.55 77062.73 53800.79 37636.09 28832.80
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Investment Growth
The investment of the bank has stood at BDT 77714.95 million as on 31 st December 2011 as
against BDT 53582.96 million in the previous year showing a net increase by 45.04%. The
investment portfolio of the bank is well diversified and covers a broad spectrum of business
and industries including readymade garment, textile, edible oil, ship scrapping, steel and
engineering, chemical, pharmaceuticals, cement, telecommunication, construction,
healthcare, education, transport and investment under consumer scheme. The bank has geared
up effort to improve the recovery rate of disbursed investment and also taken adequate
measures for converting the classified investment into performing assets. As a result,
classified investment of the bank could be kept at low level for below the national average. It
is 0.95% in this bank as on 31 st December 2011. The bank gives top-most priority to the
creation of quality assets and does appropriate risk grading while approving commercial,
trade and project investment to different Clients.
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3.11 Documentation
A. Customer analysis:
Capital structure of the company
Authorized capital and paid up capital
Reserve and retained earnings
Share holdings of the share holders
Management team
Group and affiliate companies
Ability to comply investment convent
Security
Ability and integrity
B. Industry analysis:
Contribution to GDP of the concern industry
Key risk factors of the industry
Growth of the industry
Domestic market of the industry
International market of the industry
C. Supplier \ Buyer analysis:
Domestic
International
Potentiality of the buyer or supplier
Strength and weakness of the buyer or supplier
D. Historical Financial analysis:
Minimum three years Financial Statement (FSS) analysis
Guarantor (s) \ Corporate guarantor (s) Financial Statement analysis
Quality and sustainability of the borrower’s
Cash flow statement
Strength of the borrower’s balance sheet
Leverage
Profitability
E. Project Financial Performance:
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Where term investment facilities are being proposed in favor of any new industrial unit an
expertise team comprising RM. Engineer in the concern field and financial analyst, the team
will prepare a feasibility study as per current industrial policy.
F. Account Conduct:
Trade payment
Cheques payment
Timely payments
Irregular payment
Banks investment payment with profit
Excess over limit drawings
Excess over DP drawing
Banks commission and charges payment
G. Mitigating Factor:
Margin
Volatility
High debt load ( Leverage\Gearing )
Overstocking or debtor issues
Repaid growth, acquisition or expansion
Management changes or succession issues
Customer or Supplier concentration
Lack of transparency or industry issues.
H. Investment Structure:
Amount of investment
Tenors of investment
Justification of investment
Based on the project repayment ability installment to be determined
Safety:
Safely should get the prior importance in the time of sanctioning the loan. At the time of
maturity the borrower may not will or may unable to pay the loan amount. Therefore, in the
time of sanctioning the loan adequate securities should be taken from the borrowers to
recover the loan. Banker should not sacrifice safety for profitability. AL-ARAFH-ISLAMI
Bank Ltd. exercises the lending function only when it is safe and that the risk factor is
adequately mitigated and covered. Safety depends upon:
The security offered by the borrower: and
The repaying capacity and willingness of the debtor to repay the loan with interest.
Liquidity:
Banker should consider the liquidity of the loan in time of sanctioning it. Liquidity' is
necessary to meet the consumer need.
Security:
Banker should be careful in the selection of security to maintain the safety of the loan.
Banker should properly evaluate the proper value of the security. If the estimated value is less
than or equal to loan amount, the loan should be given against such securities. The more the
cash near item the good the security. In the time of valuing the security, the Banker should be
more conservative.
Adequate Yield:
As a commercial origination, Banker should consider the profitability. So banker should
consider the interest rate when go for lending. Always Banker should fix such an interest rate
for its lending which should be higher than its savings deposits interest rate. To ensure this
profitability Banker should consider the prospect of the project.
Diversity:
Banker should minimize the portfolio risk by putting its fund in the different fields. If Bank
put its entire loan able fund in one sector it \\ill increase the risk. Banker should distribute its
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loan able fund in different sectors. So if it faces any problem in any sector it can be covered
by the profit of another sector
Check-up Credit Restriction Schedule of Bangladesh Bank and Head Office Current
Investment Policy Guidelines.
Visit the Business establishment of the Client. Talk to the business and important
personalities of the locality to ascertain the Honesty, Integrity and Business dealings
of the Client.
Request for confidential report of the client from local Bank Branches. Confident
Report from Credit Information Bureau (CIB) of Bangladesh Bank through Head
Office Investment Division as per Instruction Circular of Head Office in this Regard.
Obtain Financial Statement/Balance Sheet of the Client for the last three consecutive
years for Investment Proposals of Tk. 50.00 lac or above as per Head Office
Instruction.
Forward Documents, Title Deeds and other relevant Papers to approve Lawyer of the
Bank for examination and furnishing his opinion.
Please study the following carefully and note down the actual findings in the
Appraisal Form against each item :
Effective demand, price of the goods, short or long-term duration, quality and other
specifications of the goods, availability, etc. of the sand or projected goods.
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Where sale price of the goods is payable by the client at specified future date in lump
sum or installments as per proposal.
For Bai-Murabaha Commercial and Bai Murabaha Industrial Investment, prepare
Appraisal Report on F-167B. For appraisal Bai-Murabaha agriculture and For Bai-
Murabaha Import use special Appraisal Form devised for each of those, if any,
otherwise F-167B providing the available/required supplementary information. In
course of preparation of the appraisal report please ensure incorporation of all
information of all information, particulars figures and statistics in Appraisal Form
correctly with special attention to the following: Contact primarily with the
producers/sellers/suppliers of the goods in the market, study the market price and
work out the purchase and sale prices of the goods as per guidelines.
3.14 Guideline for Sanctioning Investment by Bangladesh Bank & Head Office
If the proposal is not within the Discretionary Power of the Branch, the Branch shall
with Appraisal Report on F-167A and F-167B to Zonal Office/Head Office.
If the proposal is within the Business Power of the Zonal Office, Zonal Office shall
accord Approval /Regret the Proposal.
If the proposal is not within the Business of the Zonal Office shall forward the
proposal to Head Office with their views and recommendations.
On receiving the proposal and the Appraisal Report along with supporting papers
Head Office will either approve or Regret.
If the Branch/the Zonal Office /Head Office, the branch will issue the Sanction advice
(F-188) with a copy to Zonal Office /Head Office duly recorded in /Facility
Sanctioned Register (B-119) with authority to the investment Client for the limit.
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Open file Client-wise, affixing the Fixed Number allotted to him as per Limit Register
(B-117) and Client’s name, address, telephone number be recorded prominently in
the inner side of the investment File for easy tracing in case of need.
In case of investment to the existing Client, obtain required papers, document with the
past performance and outstanding liabilities of the Client, if any and process of
sanction the proposal as per instruction laid down here-in-above after due evaluation
or study.
In case of investment the bank follows this requirement. Sometime it may be miss uses but
almost the bank follows the respective guideline.
.
3.15 Special Scheme under Investment
Objective
To increase standard of living and quality of life of the fixed income group by extending
them investment facilities to purchase household articles.
Target Group
Permanent Officials of Govt. / Semi-Govt. / Autonomous Body / Corporations / Banks & FIs
/ Defense Forces / Madrasah / School / College / University Teachers / Businessmen / House
owners of Metropolitan & other District Head Quarters / Professionals (Doctors / Engineers /
Lawyers etc.) / Existing clients / Wage Earners / University / Medical Students / Officials of
renowned Private Firms.
Electronics & electrical goods, Motor cycle / Bi-cycle, Furniture / Fixtures, Ornaments,
Instruments / Equipments for Medical & Engineering students etc.
Mode of Investment
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Bai-Muajjal
Period of Investment
Maximum 1-years
Rate of Return
Amount of Investment
Age of Clients
How to Apply
Application Form shall have to be collected from nearest Branch of Islami Bank Bangladesh
Ltd.
Objective
Target Group
Mode of Investment
Period of Investment
Maximum 5-years
Rate of Return
Amount of Investment
For All Metropolitan Cities: Tk.1.50 million
For Districts: Tk.1.00 million
For Thana / Municipalities: Tk.0.70 million
How to Apply
Application Form shall have to be collected from nearest Branch of Islami Bank Bangladesh
Ltd.
Objective
i. To help the educated unemployed youths of rural and urban areas for self-employment.
ii. To provide investment to small businessmen and entrepreneurs.
Target Group
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Jobless young people / small traders / small & cottage industries / service sector with a valid
trade license.
Mode of Investment
Bai-Muajjal
Period of Investment
Rate of Return
Amount of Investment
How to Apply
Application Form shall have to be collected from nearest Branch of Islami Bank Bangladesh
Ltd.
Objective
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i. To ease the housing problem in the urban areas.
ii. To make arrangement for comfortable accommodation of the fixed income group.
Target Group
Mode of Investment
Bai-Muajjal
Period of Investment
Maximum 15-years
Rate of Return
Amount of Investment
Age of Clients
Maximum 65-years.
How to Apply
Application Form shall have to be collected from nearest Branch of Islami Bank Bangladesh
Ltd.
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3.15.5 Transport Investment Scheme (TIS)
Objective
Target Group
Bus, Truck, Minibus, Double Decker, Private Car, Micro Bus, Jeep, Auto Rickshaw, Pick up
Van, Human Hauler, Baku, Vessel etc.
Mode of Investment
Bai-Muajjal
Period of Investment
3 to 5 years
Rate of Return
How to Apply
Application Form shall have to be collected from nearest Branch of Al Arafha Islami Bank
Bangladesh Ltd.
Objective
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To help a section of the officials, business houses and business executives and established
professionals for movement in discharging their duties and responsibilities punctually and
efficiently.
Target Group
Reconditioned / Brand new Private Car / Micro / Jeep / Auto Rickshaw etc.
Mode of Investment
Period of Investment
Maximum 4-years for reconditioned car and 5-years for brand new cars.
Rate of Return
Amount of Investment
Tk.2.00 million for reconditioned and Tk.3.00 million for brand new car.
Age of Clients
How to Apply
Application Form shall have to be collected from nearest Branch of Al Arafha Islami Bank
Bangladesh Ltd.
Objective
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i. To provide power tillers, power pumps, shallow tube wells, thresher machines etc. on easy
terms to unemployed rural youths for self-employment.
ii. To the farmers to help augment production in agriculture sector.
Target Group
Power Tiller / Power pump / Deep / Shallow tube well / Thresher machine / Combined
harvester / Tractor / Rice transplanter / USG making Machine / Drum Seeder / Agro
processing machinery & equipments etc.
Mode of Investment
Bai-Muajjal
Period of Investment
Rate of Return
Amount of Investment
How to Apply
Application Form shall have to be collected from nearest Branch of Al Arafha Islami Bank
Bangladesh Ltd.
Objective
Food & agriculture / plastic & rubber/ forestry & furniture / dairy product processing /
engineering/ leather / chemicals / textiles / recycling / service electrical accessories / paper
product / handicrafts industries / computer technology industries /manufacturing of garments
/ sewing and other machines for tailoring etc.
Mode of Investment
Bai-Murabaha
Period of Investment
Maximum 1-year for Bai-Murabaha & Maximum 3-years for HPSM (excluding gestation
period).
Rate of Return
Amount of Investment
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3.16 Process of Investment:
Process of Investment
Heads Characteristics
Application Applicant applies for the Investment in the prescribed form of the bank
describing the types and purpose of loan.
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CHAPTER-4
PERFORMANCE
ANALYSIS
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4.1 Theoretical Review:
Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick
indication of a firm's financial performance in several key areas. The ratios are categorized as
Short-term Solvency Ratios, Debt Management Ratios, Asset Management Ratios,
Profitability Ratios, and Market Value Ratios.
Ratio Analysis as a tool possesses several important features. The data, which are provided
by financial statements, are readily available. The computation of ratios facilitates the
comparison of firms which differ in size. Ratios can be used to compare a firm's financial
performance with industry averages. In addition, ratios can be used in a form of trend
analysis to identify areas where performance has improved or deteriorated over time.
Because Ratio Analysis is based upon accounting information, its effectiveness is limited by
the distortions which arise in financial statements due to such things as Historical Cost
Accounting and inflation. Therefore, Ratio Analysis should only be used as a first step in
financial analysis, to obtain a quick indication of a firm's performance and to identify areas
which need to be investigated further.
Short-term Solvency Ratios attempt to measure the ability of a firm to meet its short-term
financial obligations. In other words, these ratios seek to determine the ability of a firm to
avoid financial distress in the short-run. The two most important Short-term Solvency Ratios
are the Current Ratio and the Quick Ratio.
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Loan-To-Deposit Ratio - LTD'
A commonly used statistic for assessing a bank's liquidity by dividing the banks total loans
by its total deposits. This number, also known as the LTD ratio, is expressed as a percentage.
If the ratio is too high, it means that banks might not have enough liquidity to cover any
unforeseen fund requirements; if the ratio is too low, banks may not be earning as much as
they could be.
Profitability Ratio
Profitability ratios show a company's overall efficiency and performance. We can divide
profitability ratios into two types: margins and returns. Ratios that show margins represent
the firm's ability to translate sales dollars into profits at various stages of measurement.
Ratios that show returns represent the firm's ability to measure the overall efficiency of the
firm in generating returns for its shareholders.
Return on Assets
The Return on Assets ratio is an important profitability ratio because it measures the
efficiency with which the company is managing its investment in assets and using them to
generate profit. It measures the amount of profit earned relative to the firm's level of
investment in total assets. The return on assets ratio is related to the asset management
category of financial ratios.
The calculation for the return on assets ratio is: Net Income/Total Assets = _____%. Net
Income is taken from the income statement and total assets is taken from the balance sheet.
The higher the percentage, the better, because that means the company is doing a good job
using its assets to generate sales.
Return on Equity
The Return on Equity ratio is perhaps the most important of all the financial ratios to
investors in the company. It measures the return on the money the investors have put into the
company. This is the ratio potential investors look at when deciding whether or not to invest
in the company. The calculation is: Net Income/Stockholder's Equity = _____%. Net
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income comes from the income statement and stockholder's equity comes from the balance
sheet. In general, the higher the percentage, the better, with some exceptions, as it shows that
the company is doing a good job using the investors' money.
The return on debt (ROD) can be expressed as the quantification of a company’s performance
or net income as allied to the amount of debt issued by the company. Putting it other way, the
return on debt refers to the amount of profit generated for every dollar held by a company in
debt. As stated by Investopedia, the return on debt is an intricate financial modeling skill
rather than being a commonly used financial reporting factor. Moreover, companies carrying
a significant amount of debt relating to capital and/or assets are more prone to economic
downturns during a decline in earnings and credit measures might be tightened.
A mix of a company's long-term debt, specific short-term debt, common equity and preferred
equity. The capital structure is how a firm finances its overall operations and growth by using
different sources of funds.
Debt comes in the form of bond issues or long-term notes payable, while equity is classified
as common stock, preferred stock or retained earnings. Short-term debt such as working
capital requirements is also considered to be part of the capital structure.
Equity-to-Assets Ratio
The equity-to-assets ratio is one of many financial ratios used to determine the financial
health and long-term profitability of a corporation. It is often used by investors to determine
whether the corporation's shares are a safe investment. Though important, the equity-to-assets
ratio should be used only with other financial ratios to determine a corporation's overall
financial health.
Efficiency Ratio
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In banking, a ratio of expenses to revenue. For example, if a bank spends $10 million and
makes $15 million in a given month, its efficiency ratio is .67. Banks desire a lower
efficiency ratio because this means that the bank is making considerably more than it is
spending and is therefore on sound fiscal footing. One way to conceptualize the efficiency
ratio is to say it is the measure of what a bank must spend in order to make one dollar. In the
above example, the bank must spend 67 cents.
Ratios that are typically used to analyze how well a company uses its assets and liabilities
internally. Efficiency Ratios can calculate the turnover of receivables, the repayment of
liabilities, the quantity and usage of equity and the general use of inventory and machinery.
Operational Efficiency
A market condition that exists when participants can execute transactions and receive
services at a price that equates fairly to the actual costs required to provide them. An
Operationally-efficient market allows investors to make transactions that move the market
further toward the overall goal of prudent capital allocation, without being chiseled down by
excessive frictional costs, which would reduce the risk/reward profile of the transaction.
The asset utilization ratio measures management's ability to make the best use of its assets to
generate revenue. This is particularly meaningful in a manufacturing, where fewer capital
assets are used to produce products.
The asset utilization ratio is calculated by dividing total sales by the net book value of the
capital assets. Once calculated, this ratio can then be compared to benchmark industry
standard ratios, or it can be compared to ratios of other comparable businesses.
Total Expenses to Total Assets is the ratio between total Expense and total assets. It
provides information regarding total costs involved annually for investment funds. The costs
include expenses like legal fees, management fees, and other operational expenses. Total
Expense Ratio is also called as Expense Ratio.
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The Expense helps in measuring the fund’s assets which are sold or used to manage the
expenses relating to the fund. The output is expressed as a percentage and is calculated on a
yearly or annual basis.
The risk of loss of principal or loss of a financial reward stemming from a borrower's failure
to repay a loan or otherwise meet a contractual obligation. Credit risk arises whenever a
borrower is expecting to use future cash flows to pay a current debt. Investors are
compensated for assuming credit risk by way of interest payments from the borrower or
issuer of a debt obligation.
Credit risk is closely tied to the potential return of an investment, the most notable being that
the yields on bonds correlate strongly to their perceived credit risk.
Page 78 of 168
4.3 Time Series Analysis:
Analysis:
In this ratio, I can analysis that the ratio of investment to deposit has increased in 2010 which
compare in more than from 2008 to 2012. On 2012, investment to deposit Ratio is a lower
than another year.
Page 79 of 168
Loan or Investment to Deposit Ratio
Analysis:
As Loan or Investment to Deposit Ratio, I can analysis to comaper between Shahajalal Islami
Bank, Social Islami Bank, First Security Islami Bank and Exim bank. So that on 2009
Shahjalal Islami Bank is higher than another year. On 2010, Social Islami Bank is the biggest
rate than another year. First Security Islami Bank compares their investment to deposit ratio
is high 2008 than another year. And the Exim Bank is increasing from 2008 to 2012. So that
the ratio of Exim bank on 2012 is 107.30%.
Page 80 of 168
Investment to Assets Ratio
Analysis:
In this ratio analysis, I can see that the ratio of investment to Assets Ratio is greater on 2009
than another year. So that the best ratio of investment to Assets Ratio is 77.57%
Page 81 of 168
Investment to Assets Ratio
Analysis:
In 2010 Shahjalal Islami Bank is higher than another year. On 2010, Social Islami Bank is
the biggest rate than another year. First Security Islami Bank compares their investment to
deposit ratio is high 2010 than another year. And the Exim Bank is the best rate on 2012. So
that the ratio of Exim bank on 2012 is 89.69%
Page 82 of 168
Return on Assets
Analysis:
In this ratio, I can analysis that the ratio of Return on Assets has increased in 2010 which
compare in more than from 2008 to 2012. On 2012, Return on Assets is a lower than another
year.
Page 83 of 168
Return on Assets (ROA)
Analysis:
Exim bank Return on assets (ROA) is higher than others three Islami banks. Then 2 nd position
exist social Islami bank. First security Islami bank’s ROA position is very low than others
three Islami banks.
Page 84 of 168
Return on Equity
Analysis:
In this ratio, I can analysis that the ratio of return on equity (ROE) has decreased in 2012
which compare in more than from 2008 to 2009, 2010 & 2011. So ROE are decreased by
every year.
Page 85 of 168
Return on Equity (ROE)
Analysis:
From the diagram I can analysis to comaper between Shahajalal Islami Bank, Social Islami
Bank, First Security Islami Bank and Exim bank. So that on 2012 Exim Bank ROE is higher
than another three Islami banks. All four Islami banks ROE are very close to one another.
Page 86 of 168
Return on Deposits
Analysis:
In this ratio, I can analysis that ratio has increased in 2010 which compare in more than from
2008 to 2012. On 2012, Return on Deposits Ratio is a lower than another year.
Page 87 of 168
Return on Deposits (ROD)
Analysis:
As Return on Deposits, I can analysis to comaper between Shahajalal Islami Bank, Social
Islami Bank, First Security Islami Bank and Exim bank. On 2012, Exim Bank is best and
First Security Islami Bank is lowest position.
Page 88 of 168
Equity to Assets Ratio
Analysis:
In this ratio, I can analysis that has increased in 2010 which compare in more than from 2008
to 2012. On 2008, this Ratio is a lower than another year.
Page 89 of 168
Equity to Assets Ratio
Analysis:
As this ratio, I can analysis to comaper those banks. I can see that the Exim Bank position is
better than another bank activity.
Page 90 of 168
Deposits to Assets Ratio
Analysis:
In Deposits to Assets ratio, I can analysis that has increased in 2012 which compare in more
than from 2008 to 2012. On 2010, Deposits to Assets Ratio is a lower than another year.
Page 91 of 168
Deposits to Assets Ratio
Analysis:
As this Ratio, I can analysis to comaper between those banks. So that on 2012 Shahjalal
Islami Bank is higher than another year. On 2010, Social Islami Bank lowest position than
another bank.
Page 92 of 168
Operating Efficiency
Analysis:
In this ratio, I can analysis that the ratio of investment to deposit has increased in 2009 which
compare in more than from 2008 to 2012. On 2011, this Ratio is a lower than another year.
Page 93 of 168
Operating Efficiency
Analysis:
As operating Efficiency Ratio, I can analysis to comaper between those Banks. So that on
2012 first Security Islami Bank is higher than another year and Shahjalal Islami bank is
lowest position.
Page 94 of 168
Asset Utilization
Analysis:
In this ratio, I can analysis that the ratio of assets Utilization has increased in 2012 which
compare in more than from 2008 to 2012. On 2010, assets Utilization Ratio is a lower than
another year.
Page 95 of 168
Asset Utilization
Analysis:
As Asset Utilization Ratio, I can analysis to comaper between those Banks on 2012; First
Security Islami Bank is higher rate and the second position is Exim Bank on 2012.
Page 96 of 168
Total Expenses to Total Assets
Analysis:
In this ratio, I can analysis that ratio has increased in 2009 which compare in more than from
2008 to 2012. On 2011, Total Expenses to Total Assets Ratio is a lower than another year.
Page 97 of 168
Total Expenses to Total Assets
Analysis:
As total Expenses ot total Assets Ratio, I can analysis to comaper for 2012 that Exim bank is
higher than another. And Social Islami Bank is second position.
Page 98 of 168
Operating Income to Total Assets
Analysis:
In this ratio, I can analysis that ratio has increased in 2010 which compare in more than from
2008 to 2012. On 2012, investment to deposit Ratio is a lower than another year.
Page 99 of 168
Operating Income to Total Assets
Analysis:
Above the Exim bank operating profit rate is higher than other three islami banks. In 2012
their operating profit rate is 5.30%, that is better than other three islami banks.
Analysis:
In this ratio, I can analysis that the ratio of Equity to Investment Ratio is higher in 2010
which compare in more than from 2008 to 2012. On 2008, Equity to Investment Ratio is a
lower than another year.
Analysis:
In the equity to investment Ratio, I can comapare among Shahajalal Islami Bank, Social
Islami Bank, First Security Islami Bank and Exim bank. So that First Security Islami Bank
equity is lower than other three Islami banks.
Analysis:
On loan or investment to Deposits Ratio, I can analysis to compare those banks that on 2009
Shahjalal Islami Bank best position to anther banks. And second position is Al-Arafah Islami
Bank and rate is 98.12%
Analysis:
On Loan or Investment to Assets Ratio, I can analysis to compare those banks that on 2012
Exim Bank best position to anther banks. And third position is Al-Arafah Islami Bank for the
loan or investment to Assets ratio. So that loan to assets ratio is 77.96% on 2012.
Analysis:
On Return on Assets Ratio, I can analysis to compare those banks that on 2010 Exim Bank
best position to anther banks. And third position is Al-Arafah Islami Bank.
Analysis:
On Return on Equity Ratio, I can analysis to compare those banks that on 2010 Shahjalal
Islami Bank best position to anther banks. And Third position is Al-Arafah Islami Bank.
Analysis:
On Return on Deposit Ratio, I can analysis to compare those banks that on 2010 Shahjalal
Islami Bank and Exim Bank is best position to anther banks. And second position is Al-
Arafah Islami Bank.
Analysis:
On Equity to Assets Ratio, I can analysis to compare those banks that on 2012 Exim Bank
best position to anther banks. And second position is Al-Arafah Islami Bank
Analysis:
Deposits to assets Ratio, I can compare those banks Al-Arafah Islami Bank is better position
than another bank.
Analysis:
First security Islami bank’s operating efficiency better than other four Islami banks. Al-
Arafah Islami bank exist in the fourth position.
Analysis:
First security Islami bank show more utilizes their assets than other four Islami banks. From
2010 Al- Arafah Islami bank’s asset utilization ratio are increased.
Analysis:
According to the chart/ figure Shahjalal Islami bank total expenses are low than other four
Islami banks. Al- Arafah Islami bank also minimize their cost.
Analysis:
From 2008 to 2012 Exim bank operating profit is better than other four Islami banks. But Al-
Arafah Islami bank are exist in the 2nd position. Social Islami bank is also good position.
Analysis:
From above figure I saw that first security islami bank equity to investment is lower than
others four islami banks. So their equity are decreasing every year. But Al-Arafah islami
bank equity are also decreasing every year.
RESEARCH PART
Total Respondent-25
Total 25 100%
Interpretation:
84% clients say that AIBL’s khilkhet branch are very good, 8% are viewed good and 8%
good.
Total Respondent-25
No. Comments Interviewees
03. No 0 0% 100%
Total 25 100%
Interpretation:
In the data, after analysis I saw that 68% clients are viewed that AIBL’s Khilkhet branch
location is better place, and 32% are neutral.
Total Respondent-25
Total 25 100%
Interpretation:
28% clients say that bank environment of AIBL’s Khilkhet branch are very good, 64%
express their opinion good..
Total Respondent-25
Total 25 100%
Interpretation:
32% clients say that employees are always ready to help their customer and 68% are agree.
Total Respondent-25
03. No 0 0% 100%
Total 25 100%
Interpretation:
52% clients say that customer are getting more facilities here compare with other banks, 48%
are average.
Total Respondent-25
Total 25 100%
Interpretation:
From the data, 20% clients say that employees behave with very cordial, 72% clients
say that employees behave cordial.
Total Respondent-25
No. Comments Interviewees
03. No 1 4% 100%
Total 25 100%
Interpretation:
80% clients express their opinion is that AIBL should increase their branch for customer
demand.
Total Respondent-25
No. Comments Interviewees
Total 25 100%
Interpretation:
From the information 68% clients say that AIBL should use modern equipment.
Total Respondent-25
No. Comments Interviewees
Total 25 100%
Interpretation:
64% clients view their opinion AIBL’s ATM is good, and 28% are neutral.
Total Respondent-25
01. Yes 1 4% 4%
03. No 1 4% 100%
Total 25 100%
Interpretation:
92% are not very much satisfied about their ATM. AIBL should improve their ATM.
Total Respondent-25
03. No 0 0% 100%
Total 25 100%
Interpretation:
96% clients view their opinion AIBL should increase their ATM booth for their customer
demand.
Total Respondent-25
No. Comments Interviewees
03. No 0 0% 100%
Total 25 100%
Interpretation:
From the above diagram, 88% clients express their opinion is that cash section should be very
fast.
Total Respondent-25
No. Comments Interviewees
Total 25 100%
Interpretation:
12% clients are very satisfied to operate their A/C in this branch, 84% are satisfied, and 4%
are average.
Total Respondent-25
Total 25 100%
Interpretation:
20% clients are strongly agree eith with their vision, 76% clients are agree with their vision,
and 4% cients are neutral.
Total Respondent-25
03. No 2 8% 100%
Total 25 100%
Interpretation:
From the above diagram, 20% clients saw that AIBL investment policies are not very strict,
72% are neutral and 8% are no.
Total Respondent-25
Total 25 100%
Interpretation:
In the above data, 16% clients view their opinion AIBL profit rate is lower than others banks,
68% are neutral and 16% are no.
Total Respondent-25
No. Comments Interviewees
Total 25 100%
Interpretation:
From the above information, 24% clients are expressed that AIBL investment policy is
easy,68% are neutral and 8% veiw their opinion tough.
Total Respondent-25
No. Comments Interviewees
03. No 2 8% 100%
Total 25 100%
Interpretation:
In the AIBL investment repayment policy, 32% clients are votted yes,60% are votted neutral
and 8% are no. so I can say that AIBL investment repayment policy are not very easy.
Total Respondent-25
03. No 0 0% 100%
Total 25 100%
Interpretation:
From above this data 64% clientsexpress their opinion yes, 36% are neutral.
Total Respondent-25
03. No 0 0% 100%
Total 25 100%
Interpretation:
After collecting information from clients I saw that 100% clients want AIBL should increase
their social responsibility.
Total Respondent-25
03. No 0 0% 100%
Total 25 100%
Interpretation:
After collecting information from clients I saw that 96% clients want AIBL should
increase their social responsibility.
Total Respondent-25
03. No 0 0% 100%
Total 25 100%
Interpretation:
After collecting information from clients I saw that 96% clients want AIBL should increase
their social responsibility.
Total Respondent-25
Total 25 100%
Interpretation:
After collecting information from clients I saw that 84% clients want AIBL should increase
their social responsibility. And 16% are neutral.
Total Respondent-25
03. No 0 0% 100%
Total 25 100%
Interpretation:
After collecting information from clients I saw that 100% clients want AIBL should
increase their social responsibility.
Total 25 100%
Interpretation:
After collecting information I saw that 64% are Mudaraba Saving Deposit (MSD)
holder and 36% clients are Al- Wadiah Current Deposit (CD) holder.
Total 25 100%
Interpretation:
Before interpretation I saw that 68% male that means 17 clients and 32% or 8 female are
participate in the questionnaire.
Total 25 100%
Interpretation:
From the diagram I saw that different ages clients aere involved in the questionnaire.
Most of 40% are the aged 20-25.
SWOT ANALYSIS
6.2 Strengths:
AIBL provides its customer excellent and consistent quality is every service.
AIBL utilizes state of the art technology to ensure consistent quality and operation.
6.3 Weaknesses:
6.4 Opportunities:
Many branches can be opened in local remote area as its high demand.
AIBL can recruit experienced, efficient and knowledgeable officers and staffs as it
offers good working environment.
Frequency taka devaluation and foreign exchange rate fluctuation is causing problem.
Lots of new banks are coming in the scenario with new service.
Local competitors can capture huge market share by offering similar products
FINDING,
RECOMMENDATION
AND
CONCLUSION
The three (03) months internship program has been going to be finished through writing a
report. During the time of internship I have tried with my best to acquire theoretical and
practical knowledge Banking business and the Management of Credit. Being an employee of
Al- Arafah Islami bank Ltd.
Chapter-1: Introduction is illustrated in chapter one. Here I have tried to find out the history
of Islamic Banking System, background of the report, scope and the limitations of the study
by discussing the background of the program. This is just an introductory discussion.
Chapter-2: In chapter two I have tried to describe organizational overview and as well as
Khilkhet Branch. This chapter major part are History of AIBL, overview, Profile of AIBL,
vision, mission & objectives, specials features, Management, directors, Shariah board,
AIBL’s at a glance
Chapter-3: This chapter covered by investment. This Chapter for helps us taking decision
about any kind of Investment and on what basis we will take decision are discussed here.
Chapter-4: In this chapter are covered by Performance analysis among five Islami banks;
such as Al-Arafah Islami Bank, Shahjalal Islami Bank, Social Islami Bank, first Security
Islami Bank and Exim Bank. In this chapter I try to analysis among five Islami Banks.
Chapter-5: This Chapter are Research Part, where includes clients views and analysis.
Chapter-6: This Chapter includes SWOT analysis. That means Strengths, Weakness,
Opportunities, and Threats.
Chapter-7: Chapter ten is a concluding part of this report. Here problems & limitations of
AIBL for making investment are discussed and I have given recommendations for rectifying
these problems
i) Decision making process is very lengthy and sometimes it creates problems, which is
unexpected to the customers. Most of the cases Head Office control the decision making and
it is centralized.
ii) The total number of employees in comparison with needed is very short. this is hampering
the daily operation of the Bank. For an example, Motijheel Branch General Banking is
suffering from shortage of employee.
iii) Lack of proper explanation of records and document records keeping system
7.3 Recommendations:
Records keeping system: Filing and record keeping system of the bank should be
modernized .At present operation system is partially computerized and on line
banking should be started very soon.
Complaint Management:
Al-Arafah Islami Bank Ltd should actively manage the complaints of various customers
and encourage customers to give feedback about the services. Through complaint
solicitation the management can collect and document complaints of customers, then use
that information to identify dissatisfied customers, correct individual problems where
possible common service failure points. And also critical incidents studies as its powerful
and vivid in eliciting customer requirements, in the service encounter level and through
this the researcher emerges with a list of desirable and undesirable employee behaviors.
This helps the management to train the employee on the facets where they need
improvement and learning.
7.4 Conclusion
Al-Arafah Islami Bank ltd. is a unique combination of shariah & Islamic banking. Among
non government commercial banks, Al-Arafah Islami Bank Ltd. is a milestone for economic
development. It has been playing an important role to eradicate the unemployment problem in
Bangladesh. Over 800 employees and 5500 shareholders are getting benefit from this
organization. But most of the people in our country have misconception about Islamic
banking specially Al-Arafah Islami Bank Ltd. & other Islamic banks. They cannot find any
difference in its operation between conventional commercial Banks and Islamic Banks
because they have no clear idea about the activities as well as investment mechanism of
Islamic banks.
The Bank is committed to run its activities as per Islamic Shariah and thus it has different
investment(credit) modes, different repayment schedules, different disbursement procedure,
different mark up system. This system is accepted in Islamic Shariah because here money is
converted to goods. ‘Money begets money ‘is prohibited in Islamic Shariah. People are
getting more benefit from the dealings of Islamic banking because here quarterly interest is
not charged and there is no possibility of interest to be converted into principal. It cannot take
part in call money market. Mudaraba, Musharaka are another mode of investment in Islamic
Banking.
The fund of bank strongly depends on deposits and it is has a big influence through the
number and amount of deposit. Khilkhet Branch, Al-Arafah Islami Bank Ltd. has a better
opportunity to have a huge deposit account to increase it fund. Credit card and ATM cards
www.google.com
www.alarafahislamibank.com
www.shahjalalislami bank.com
www.socialislami bank.com
www.firstsecurityislami bank.com
www.eximbank.com
www.wikipedia.org/ratioanalysis.com
www.bangladeshbank.com
Questionnaire
Annual Report
Excel Sheet
Exim Bank
Profitability Ratio
01.Return on Assets (ROA)
Net Income After Tax 1919529161 1772056340 1776992595 858987708 668353316
Total Assets 146334812318 103518725256 75374365400 48515787384 37177221276
Return on Assets (ROA) 1.31% 1.71% 2.36% 1.77% 1.80%
Efficiency Ratio
01.Operating Efficiency
Year 2012 2011 2010 2009 2008
Total Operating Expenses 2119050842 1468752165 1328555555 908465434 644587565
Total Operating Income 6522954739 5123964635 4489198267 2638293982 2172687425
Operating Efficiency 32.49% 28.66% 29.59% 34.43% 29.67%
02.Asset Utilization
Total Revenues 14119185337 8974091781 4243934714 4004536370 3456338527
Total Assets 146334812318 103518725256 75374365400 48515787384 37177221276
Asset Utilization 9.65% 8.67% 5.63% 8.25% 9.30%
Profitability Ratio
01. Return on Assets
Net Income After Tax 1249721591 1168443400 2072340363 1070568293 817709533
Total Assets 131195295861 107228861656 78800401984 58920895401 44109502922
Return on Assets 0.95% 1.09% 2.63% 1.82% 1.85%
Efficiency Ratio
01. Operating Efficiency
Year 2012 2011 2010 2009 2008
Total Operating Expenses 1209856154 1632504338 1322254120 875597545 513191258
Total Operating Income 4684978491 4630395237 4850963364 2916761866 2322991357
Operating Efficiency 25.82% 35.26% 27.26% 30.02% 22.09%
02. Asset Utilization
Total Revenues 11205890801 10107768588 6416784885 5530882252 4236170670
Total Assets 131195295861 107228861656 78800401984 58920895401 44109502922
Asset Utilization 8.54% 9.43% 8.14% 9.39% 9.60%
Profitability Ratio
01. Return on Assets
Net Income After Tax 1382942452 1083419151 643019720 431522723 202068294
Total Assets 107280652775 84406179099 55168540937 39980819472 29808880564
Return on Assets 1.29% 1.28% 1.17% 1.08% 0.68%
Efficiency Ratio
01. Operating Efficiency
Year 2012 2011 2010 2009 2008
Total Operating Expenses 1754254623 1377456279 994462017 653337029 504342309
Total Operating Income 5512232156 4146254649 2633090142 1717643034 1291706859
Operating Efficiency 31.82% 33.22% 37.77% 38.04% 39.04%
Profitability Ratio
01.Return on Assets (ROA)
Net Income After Tax 761863499 580161847 548600731 326837749 104282064
Total Assets 129733173088 90956640861 63619797799 47978552952 31239393418
Return on Assets 0.59% 0.64% 0.86% 0.68% 0.33%
Efficiency Ratio
01.Operating Efficiency
Year 2012 2011 2010 2009 2008
Total Operating Expenses 1792725352 1146191070 881607207 576795959 383179206
Total Operating Income 3734683955 2735752917 2085207938 1327633708 572782959
Operating Efficiency 48.00% 41.90% 42.28% 43.45% 66.90%
02.Asset Utilization
Total Revenues 13339668730 8747763443 5547047795 4348674553 3141799470
Total Assets 129733173088 90956640861 63619797799 47978552952 31239393418
Asset Utilization 10.28% 9.62% 8.72% 9.06% 10.06%
Profitability Ratio
01.Return on Assets
Net Income After Tax 2504268751 2009372842 3476007955 1694095372 1096627046
Total Assets 153562923237 129871124163 113070981888 83329339048 68446464000
Return on Assets 1.63% 1.55% 3.07% 2.03% 1.60%
02.Return on Equity
Net Income After Tax 2504268751 2009372842 3476007955 1694095372 1096627046
Total Equity 17414562145 14484224847 12474852005 6717211671 4989201956
Return on Equity 14.38% 13.87% 27.86% 25.22% 21.98%
03.Return on Deposits
Net Income After Tax 2504268751 2009372842 3476007955 1694095372 1096627046
Total Deposit 128356969591 107881205901 94949400069 73835461825 57586991798
Return on Deposits 1.95% 1.86% 3.66% 2.29% 1.90%
Efficiency Ratio
01.Operating Efficiency
Year 2012 2011 2010 2009 2008
Total Operating Expenses 3245126421 2488290474 1810108689 1258972608 1030942700
Total Operating Income 8134165421 6444113523 7703898077 4440754020 3549331785
Operating Efficiency 39.90% 38.61% 23.50% 28.35% 29.05%
02.Asset Utilization
Total Revenues 14912456122 13122774352 9606185898 8147113948 6575384481
Total Assets 153562923237 129871124163 113070981888 83329339048 68446464000
Asset Utilization 9.71% 10.10% 8.50% 9.78% 9.61%