Deposit and Investment Management of Al-Arafah
Al-Arafa h Islami Bank Limite d
Sk. Mel.
An Internship Report Submitted in Partial Fulfilment of the Requ Requir irem emen ents ts for for the the A Prog Progra ram! m! Ahsanullah "niversit# of S$ien$e % &e$hnolog# e$hnolog#
INTERNSHIP REPORT
DEPOSIT AND INVESTMENT MANAGEMENT OF AL-ARAFAH ISLAMI BANK LIMITED PREPARED FOR DUTTA PROFESSOR SCHOOL OF BUSINESS
PREPARED B HOSSAIN !"#"!#"$#"! BBA
%$"
t h BATCH
SCHOOL OF BUSINESS
DATE OF SUB&ISSION $"! '
INTERNSHIP REPORT
DEPOSIT AND INVESTMENT MANAGEMENT OF AL-ARAFAH ISLAMI BANK LIMITED PREPARED FOR DUTTA PROFESSOR SCHOOL OF BUSINESS
PREPARED B HOSSAIN !"#"!#"$#"! BBA
%$"
t h BATCH
SCHOOL OF BUSINESS
DATE OF SUB&ISSION $"! '
UNIVERSITY OF SCIENCE & TECHNOLOCV
LETTER August '(! )'*+ Dr. Dipak ,anti Professor! S$hool of usiness Ahsanullah "niversit# of S$ien$e % &e$hnolog#
Subject: Submission of Internship Report.
Dear Sir! &his is m# pleasure to present m# internship report entitled Deposit Management of Al-Arafah in Al-Arafah Islami ank imited! Sonargaon /anapath Road ran$h 0Plot 1'! Se$tor **! Sonargaon /anapath Road! "ttara! Dhaka-*)1'2 I believe that kno3ledge and
e4perien$e I gathered during the internship period 3ill be helpful in m# future professional life. I 3ill be grateful to #ou if #ou a$$ept the report. I 3ill be available for defense on this report at an# time. 5our support in this regard 3ill be highl# appre$iated. &hanking #ou.
Sin$erel# #ours
Sk. Md . Maidul 6ossain ID7 10.01.02.010 )8!h
wwm mmm wmm mmm
$mm mmw mwm §
Page | ii
ACK NO WL EDG EME N T
ank imited! for giving me the valuable opportun it# to do m# internshi p program and supporti ng me 3ith kno3led
ge and resour$e s. I am also grateful to the entire &eam Sonarga on /anapath Road ran$h of AlArafah Islami ank imited as the# had al3a#s been there for me 3hen I needed them the most. &heir a$tive parti$ipa tion to all m# question
s! queries during m# internshi p has made this 9ourne# a true su$$ess. :spe$iall #I 3ant to thank m# organi;a tional supervis or Mr. Rubayet Ullah, ,han 0Se$ond
Page | iii
PR EF AC E First of all I 3ould like to be grateful to the Almight # Allah! the mer$iful % the benevole nt that has enabled me to $omplete this report. &he internshi p! a part of the a$ademi$ dis$iplin e! for the A students
has been designed to a$quire pra$ti$al kno3led ge. It is e4pe$ted that the integrati on of kno3led ge in theories and pra$ti$es 3ill enable us to be$ome effe$tive. &hrough this program! I have got the $han$e to a$quire some e4perien $e in a reputed bank. =hi$h is e4pe$ted to enlighten m# $areer.
and Investme nt Manage ment of AlArafah as sub9e$t matter for m# internshi p program due to personal $uriosit# % interest to a$hieve some pra$ti$al kno3led ge about this se$tor. esides this banking a$tivit# is mu$h importan t for the e$onomi $ develop ment. =ithout bank it>s
diffi$ult to run finan$ial a$tivities or operation . So it>s normall# $laims a resear$h on it for better understa nding at present. Finall#! it is m# earnest % sin$ere hope that this report on Deposit and Investme nt Manage ment of AlArafah Islami ank imited 3ould be found useful b# the
individua ls. I tried to make the report effe$tive! informati ve and represent ative.
EXECUTIV E SUMMAR Y
Islami ank imited! Sonargaon /anapath as a requirement of m# A program in S$hool of usiness! Ahsanullah "niversit# of S$ien$e % &e$hnolog#. M# topi$ is Deposit and Investment Management of Al-Arafah Islami ank imited. In this report I des$ribed about Islami$ $on$ept about deposit and investment! available deposit and investment produ$ts of AI !
&he first $hapter sho3s different aspe$ts of the report like a brief introdu$tion! origin of the report! statement of the Issue! ob9e$tives! signifi$an$e! methodolog# % limitations of the stud#. Se$ond $hapter sho3s a brief $ompan# overvie3. In this se$tion different important data about Al-Arafah Islami ank imited is provided. a$kground! vision! mission! $ommitments! spe$ial features! produ$t line! organogram of AI and some other ne$essar# $ompan# related information is provided in this $hapter.
&he third $hapter is about literature revie3. In this $hapter I des$ribed the $on$epts of Islami$ banking and basi$s about m# internship report topi$ deposit and investment management under Islami Sharia.
&he ne4t t3o $hapter is the most important $hapter of this report. ?hapter + des$ribes deposit management and ?hapter 8 des$ribes investment management of AI . I des$ribed ho3 the bank $olle$t the mone# from different deposit sour$e and allo$ate them to different investment portfolio to earn profit. I sho3ed $urrent deposit and investment position of the bank and some previous re$ords. I also des$ribed Sharia $on$ept about deposit and investment of the bank. &here is a detailed des$ription about their deposit and investment produ$ts so that their managing strateg# $ould be understood more $learl#.
&he si4th $hapter sho3s the findings of m# stud#. &here I des$ribed the $ondition of deposit and investment of the bank for last t3o #ears. &hen I stated some problems I reali;ed about the bank that need to be fi4ed for the profitabilit#. &hen I briefl# presented m#
improvement of deposit and investment related S=<& anal#sis of AI
Page | v
Finall#! in the last $hapter I stated some re$ommendations for the improvement of deposit and investment $ondition of the bank and then the $on$lusion has been made.
?<@&:@&S Page etter of &ransmittal A$kno3ledgements Prefa$e :4e$utive Summar#
Chater 1: !"#R$%UC#!$ " Introdu$tion
Chater 2: C$MPA"& $'ER'!E ( a$kground of AI
).
AI
?redit Rating
).*1
).*+ Internal ?ontrol % ?omplian$e 0I??2 Shariah
).)'
?ard
Chater ): *!#ERA#UR E RE'!E (
1.
&#pe
Chater +: %EP$S! # MA"AEME" #
+.1
Deposit Mi4
Chater -: !"'ES#ME" # MA"AEME" # Investment of AI
8.1
Se$tor =ise Investment )'*1
8.8 +B
Mi$ro! Small % Medium :nterprises 0MSM:2 Investment
8.( 0+2
Investment for Cro3ing Spi$es at a o3est Profit Rate 8'
8.
Al-Arafah
8.*'
Crameen Small Investment S$heme 0CSIS2
Chater : F!"%!"S
Chater /: REC$MME"%A#!$" C$"C*US!$"
Referen$es Appendi4
S S
OF FIGURES Page A Performan$e at a Clan$e 0In million taka2
Figure )? an AI
Figure + )'*1
Deposit Mi 4
Figure 8
Figure 8: ?ategor# =ise MSM: Development 0?lient Per$entage2 + Figure 8F Se$tor 3ise Agri$ultural Investment )'*))'*1 02 8' Figure 8C Cradual Development of CSIS Figure 86 Cradual Development of Solar :nerg# Investment ?lient 88
!lai 3a45 *iite6
?hapte r *
I@& R
Issue *./ imitations of the Stud# *.+
1.1 !4tr76ucti74 angladesh is one of the largest Muslim $ountries in the 3orld. &he people of this $ountr# are deepl# $ommitted to Islami$ 3a# of life as enshrined in the 6ol# Eur>an and the Sunnah. it a deep in to design Page **
@aturall#! remains $r# their hearts fashion and their
e$onomi$ lives in a$$ordan$e 3ith the pre$epts of Islam. &he establishment of Al-Arafah
pra$ti$es! onl# in the late )'th $entur# 3ere a number of Islami$ banks formed to appl# these prin$iples to private or semi-private $ommer$ial institutions 3ithin the Muslim $ommunit#. Islami$ banking
$ommen$ed operations in angladesh in *1. &here are Islami Shariah based banks in angladesh and the# e4e$ute banking a$tivities a$$ording to Islami Shariah based prin$iples i.e. Profit-oss Sharing 0PS2 mode.
1.2 $rigi4 78 the Re7rt
and Investment is on of
$ondu$ted the basis m# pra$ti$al e4perien$e of three months long internship at Sonargaon /anapath Road ran$h of Al-Arafah
Islami ank imited.
After $onsultation
3ith m# fa$ult#
supervisor Dr. Dutta! Professor! S$hool of usiness! Ahsanullah "niversit# of S$ien$e % &e$hnolog# and under the dire$tion of m# organi;ational supervisor Mr. Ruba#et "llah! o Senior Prin$ipal
1.) Statee4t 78 the !ue Islami
ank
7imited. It fo$uses on the $urrent deposit and investment management s#stem! deposit and investment evaluation method! strength and 3eaknesses of $urrent deposit and investment strateg# and future initiatives taken to improve the $ondition of deposit and investment management of Al-Arafah Islami ank imited.
1.+ $bjective 78 the Stu6y &he main ob9e$tive of the stud# is&o provide a $riti$al stud# about the deposit and investment management s#stem of Al-Arafah Islami ank imited
G &o fo$us on deposit and investment management pra$ti$e in of AI G &o identif# the problems related to deposit and investment of AI G
&o provide guidelines deposit and
some poli$# for improving investment
management situation of AI G &o mat$h the theoreti$al kno3ledge 3ith pra$ti$al kno3ledge G &o gain pra$ti$al kno3ledge about $orporate 3orld
1.- Sig4i8ica4ce 78 the Stu6y &his internship report is an important partial requirement of four #ears A graduation program. &his is be$ause kno3ledge and learning be$ome perfe$t 3hen it is asso$iated 3ith theor# and pra$ti$e. # this internship program students $an establish $onta$ts and net3orking. ?onta$ts ma# help to get a 9ob in pra$ti$al life. &hat is! student $an train and prepare themselves for the 9ob market. A developing $ountr# like angladesh has an
over3helming number of unemplo#ed edu$ated graduates. As the# have no internship e4perien$e the# have not been able to gain normal professional e4perien$e of establish net3orking s#stem! 3hi$h is important in getting a 9ob. &herefore! it is obvious that the signifi$an$e of internship is $learl# 9ustified as the $ru$ial requirement of four #ears A graduation.
1. Meth767l7gy 78 the Stu6y 1..1
&he stud# is e4plorator# in nature. It gives an insight and $omprehensiveness of the deposit and investment management and also the attributes that affe$ts the profitabilit# of the bank. &o $olle$t and anal#;e the information for this report! I have used both qualitative and quantitative resear$h methods.
1..2
Different data and information are required to meet the goal of this report. &hose data and information 3ere $olle$ted from various sour$es! su$h as! primar# and se$ondar# 3hi$h is sho3ed belo37 0a2 Priary S7urce 78 %ata: Primar# sour$e of data are kno3n as the data 3hi$h are $olle$ted through observation and dire$t $onta$t. &he# are not derived from an# other sour$es. &he primar# data are the information $olle$ted during the internship period b# the observation and involvement. Most of the primar# data are $olle$ted through the follo3ing sour$es7 G Da# to da# operation 3ith staff of AI
78 %ata: &he se$ondar# data is one 3hi$h has alread# 0b2 Sec746ary S7urce been $olle$ted b# a sour$e other than present investigator. Se$ondar# data
in$lude both ra3 data and published summaries. Do$umentar# se$ondar# data
Page | )
in$lude 3ritten material su$h asH books! 9ournal arti$les! ne3spapers as 3ell as administrative and publi$ re$ords. &hese t#pes of data are $olle$ted through follo3ing 3a#s7 G
Annual report of AI
1./ *iitati74 78 the Stu6y
ank>s poli$# of not dis$losing some sensitive data and information obvious reason posed an obsta$le to prepare more informative report.
G
Personal limitations like inabilit# to understand some offi$ia de$orum et$. $reated a fe3 problems.
G
&he duration of $ompleting internship program and preparing internship report 3as inadequate. It 3as ver# diffi$ult for me to understand an organi;ation>s
for
l terms! offi$e
Islami Ba! Limi"#$
?hapt er ) ?
).* ran$h @et3ork ).)' ?ard % A& M ).)* Creen anking
).)) ?SR A$tivities of AI
?redit Rating ).*) 6ierar$h# of the Management &eam ).*1
!lai 3a45 *iite6
Arafah Islami ank td 3as established &he inaugural $eremon# took Page J pla$e on )( September *8. &he authori;ed $apital of the ank is &k.8'''.'' Reno3ned Islami$ S$holars and pious businessmen of the $ountr# are the sponsors of the ank. *'' of paid up $apital is being o3ned b# indigenous shareholders.
and the number of shareholders 3as +!1B. It has a$hieved a $ontinuous profit and de$lared a good dividend over the #ears. 6igh qualit# $ustomer servi$e through the integration of modern te$hnolog# and ne3 produ$ts is the tool of the bank to a$hieve su$$ess. &he bank has a diverse arra# of $arefull# tailored produ$ts and servi$es to satisf# $ustomer needs.
is AD throughout the $ountr#.
2.2 'ii74 K &o be a pioneer in Islami anking in angladesh and $ontribute signifi$antl# to the gro3th of the national e$onom#
2.) Mii74
Maintaining high standard of business ethi$s alan$ed gro3th equit# Innovative banking at a $ompetitive pri$e
G
Attra$t and retain qualit# human resour$es
G G
:4tending $ompetitive $ompensation pa$kages to the emplo#ees Firm $ommitment to the gro3th of national e$onom#
G
Involving more in Mi$ro and SM: finan$ing
Page J B
2.+ C7ite4t is a $ustomer fo$used modern Islami$ ank! sound and stead# gro3th in both mobili;ing deposit and making qualit# investment to keep their position as a leading Islami bank
in angladesh.
G &o deliver finan$ial servi$es to retail! small and medium s$ale enterprises! as 3ell as $orporate $lients through bran$hes a$ross the $ountr#. G
AI> s
2.- Secial Feature 78 the 3a45 As an Islami bank! AI is singular in ever# positive aspe$t. &he# provide a bun$h of state-of-art banking servi$es 3ithin the 3ide bra$ket of shariah. AI is unique 3ith their produ$ts! stri$t 3ith their prin$iple and un$ompromising 3ith their honest#. Some of the spe$ial features that make them notable in Islami banking se$tor are as follo3s7 based s#stem a$$ording to Islami$ Shariah to get the nation rid of "sur#. G Its investment poli$ies under different modes are full $ompliant and 3ell monitored b# the board of Shariah ?oun$il. G During the #ear )''(! distributed among the Mudaraba depositors.
3 developers.
# Shariah
(' of the investment in$ome has been L
:CMs 0:4traordinar# Ceneral Meeting2 are also arranged. de$lared 1' bonus
dividend to
their shareholders.
G
&he# believe in providing dedi$ated servi$es to spirit of brotherhood! pea$e and fraternit#.
the $lients imbued 3ith Islami$
G
&he bank is $ommitted to3ards establishing a 3elfare-oriented banking s#stem to meet the needs of lo3 in$ome and underprivileged $lass of people.
G
&he ank upholds the Islami$ values of establishment of a 9ustified s#stem through so$ial eman$ipation and equitable distribution of 3ealth.
G
Follo3ing the Islami$ traditions! it is assisting in the e$onomi$ progress of the so$iall# deprived peopleH in the $reation of emplo#ment opportunities and in
e$onomi$
Page | (
promotion of rural areas to ensure a balan$e development of the $ountr#. G
&he ank believes
in so$ial and philanthropi$ a$tivities and has established AI
:nglish Medium Madrasha and AI
ibrar#.
2. C7r7rate !487rati74
ran$h7
/une *8 Moti9heel ran$h! Dhaka )( September! *8
Paid-up ?apital7 o$al Partnership of ?apital7 :quit#7
*8!'''.'' Millio n !1+1.)8 Millio n
@umber of ran$hes7 Deposit7
*''
Investment7 '
@umber of :mplo#ees7 @umber of Shareholders7
*+'!'.88 Million *)8!(*8.1 Millio n )!1( 8!+BB
2./ C7r7rate Culture Islami bank is one of the most dis$iplined anks 3ith a distin$tive $orporate $ulture based on Islami Shariah. 6ere the# believe in shared meaning! shared understanding and shared sense making. &he people in this bank $an see and understand events! a$tivities! ob9e$ts and situation in a distin$tive 3a#. &he# mould their manners and etiquette! $hara$ter individuall#
to suit the
purpose of the ank
and the needs of the
$ustomers 3ho are of paramount importan$e to the bank. &he people in the ank see themselves as a tight knit teamfamil# that believes in 3orking together for gro3th. &he $orporate $ulture has developed has not been imposedH through their ?orporate $ondu$t.
it has rather been a$hieved
Page | 9
2.9A!3*
supreme su$$ess. Islami anking S#stem
for our is be$oming more and more attra$tive da# b#
da# to peoples irrespe$tive of nations! religious! $olors and spe$ies. More than 1'' anks % finan$ial institutions are serving Islami banking throughout the 3orld. At present in our $ountr# full-fledged Islami$ anks are 3orking su$$essfull#. And other traditional banks have Islami anking =ings $ondu$ting Shariah based banking a$tivities. Re$ent Development
of angladesh
Covernment
Islami$
started its 9ourne# in *8 3ith the said prin$iples banking s#stem based on Al-Eur>an
$hairman of the bank.
Investment
ond
0CII2
Islami ank in mind and to introdu$e a modern
6is progressive leadership and $ontinuous
is the founder inspiration provided a
boost for the bank in getting a foothold in the finan$ial market of angladesh. A group of )' dedi$ated and noted Islami$ personalities of angladesh are the member of oard of Dire$tors of the bank. &he# are also noted for their business a$umen. Its authori;ed $apital is &aka *8!'''.'' Millio n and the paid-up $apital is &aka !1+1.)8 Million . &he equit# of the bank has stood at &k. *B!'*.*( million as on 1* De$ember )'*1! the manpo3er 3as )!1( and the number of shareholders 3as 8!+BB. It has a$hieved a $ontinuous profit and de$lared a good dividend over the #ears. 6igh qualit# $ustomer servi$e through the integration of modern te$hnolog# and ne3 produ$ts is the tool of the bank to a$hieve su$$ess. &he bank has a diverse arra# of $arefull# tailored produ$ts and servi$es to satisf# $ustomer needs. &he ank is $ommitted to $ontribute signifi$antl# to the national e$onom#. It has made a positive $ontribution to3ards the so$io e$onomi$ development of the $ountr# 3ith **'
=isdom
of the dire$tors! Islami$ bankers and the 3ish of Almight#
Allah make Al-
Arafah Islami ank td. most modern and a leading bank in angladesh.
2. Fi4a4cial ;ighlight 78 *at &ear Page |
0In million taka2 Particular
Authori;ed ?apital Paid up ?apital Reserve Funds %
8!'''.''
8!'''.''
*'!'''.''
*'!'''.''
*8!'''.'
*!(.8
+!B((.)
8!1.1(
(!*1'.
!1+1.)8
*!))1.*
*!((.'
)!+1(.+1
+!'(.B1
+!)(.)'
**!.*
*+!'8'.B
*B!'*.*(
1!188.8'
81!).B
)!*B.
**!B1.1
*+'!'.88
1B!*1+.'
81!8).B
((!(*+.8
*'B!B8'.+)
*)8!(*8.1
8!1'8.B+
(!B8.8(
**!11).8
1!8(8.*
+!+B).1'
(!''8.*
*B!B).8 **!1(.'
*!()1.+ *+!((+.8
*!().1
1!))1.)(
+!1)B.(
+!(88.8+
+!+.8B
*!8.)+
)!8).+(
1!+B.B)
1!++.*
+!1B'.+*
8.
*!8.'+
)!*.(
*!+8.+
)!)(B.B
+BB.1'
B88.1
)!1+.B)
)!8*(.))
+!8*8.(
(+!''8.'*
*'B!(B.*
*+!1)'.1B
*(1!*B*.B1
1+!'(+.'
88!1+.*'
(B!**).*
(*!1*.('
8!*8.''
)1!8+B.*'
1)!'+).+'
8)!)').*'
8!+(B.B'
B!'.1'
1!+.'(
!8).8
**!)+.8
*1!'(1.*+
8B(.
).B
*!*)1.+'
*!(1*.8
*!8**.(8
+!'B8.B
*'!8*).*
*1!'+(.'
*+!'+.(1
*B!B)8.1
&ier-* ?apital Ratio &ier-** ?apital Ratio &otal ?apital &otal ?apital Ratio of @PIs
@umber of Shares
*(!8!1B'
+B(!()(!1B
8!11(!*
(*1!'!'*
1+!1)+!B(*
Price Ear4i4g Rati7 <#ie= Price E>uity Rati7 <#ie= 374u Share
-
-
9 , +
Annual Report )'*1! page *
2.10 Per87ra4ce at a la4ce
at a Clan$e 0In million taka
2.11 Cre6it Rati4g ?redit Rating Agen$# of angladesh 0?RA2 imited has ad9udged AA 1 0pronoun$ed Double A &hree2 rating in the ong &erm and S&-) rating in
the Al
Short -
&erm
for
ank imited. a se d on 7
Date of Rating7
alidi t#7
Audited Finan$ial Statement )'*)
1' /une! )'*1
1' /une! )'*+
Definitions of AA1 % S&-) are given belo37 AA1
Pag
the highest-rated $ommer$ial banks e|1 onl# to a small degree. &his level of rating is ad9udged to be of ver# high qualit# and is sub9e$t to ver# lo3 $redit risk.
S#-) <;igh ra6e=: ?ommer$ial anks rated in this $ategor# are $onsidered to have strong $apa$it# for timel# repa#ment. ?ommer$ial anks rated in this $ategor# are
$hara$teri;ed 3ith $ommendable position terms of liquidit#! internal fund generation and a$$ess to alternative sour$es of funds.
2.12 ;ierarchy 78 the Ma4agee4t #ea
Ma4agi4g %irect7r
%euty Ma4agi4g %irect7r
Eecutive 'ice Prei6e4t
Se4i7r 'ice Prei6e4t
in
'ice Prei6e4t
Aita4t 'ice Prei6e4t Figure )7 6ierar$h# of the Management &eam
2.1) $rga47gra 78 a4 A!3*
3ra4ch Ma4ager Page | 12
Sec746 $88icer Se4i7r $88icer $88icer . Bu4i7r $88icer Aita4t $88icer Mee4ger
Figure )?7
2.1+ !4ter4al C74tr7l C7lia4ce
the ank>s assets and being predisposed to a$t in the shareholdersstakeholders best interests. &he oard is a$tivel# $on$erned 3ith sound $orporate governan$e! risk 8
management and that understands and diligentl# dis$harges its responsibilities b# N ensuring that the bank is appropriatel# and effe$tivel# managed and $ontrolledH to fulfill 7
the oversight responsibilities oard in$luding implementation ob9e$tives!
of the of the K
strategies and overall business plans for effe$tive fun$tioning of the bank! the oard shall have the follo3ing ?ommittees7 0a2 :4e$utive ?ommittee!
0b2 Audit
?ommittee % 0$2 Risk Management ?ommittee. Al l the above $ommittees are also the element of Internal ?ontrol of the bank
management! evaluate $omplian$e 3ith la3s and regulations et$. Page | 1)
authorities.
<6= Shariah Suervi7ry C7ittee: &o ensure 3hether the Shariah Prin$iples are follo3ed in all the transa$tions % pro$edures of an# a$tivities.
ank.
<8= !46ee46e4t !4ter4al Au6it Mecha4i: Independent Internal % :4ternal Audit have s$ope of providing bias free reports to the $ompetent authorit#! so that the authorit#
$an maintain integrit# standard a$hieved in long run.
of its finan$ial
operation and goal of the bank $an be
=histle lo3ing 0I?&2!
S#stem! healthier use of Information ?ommuni$ation % &e$hnolog#
2.1- Shariah 37ar6 78 A!3 Shariah 37ar6
7N Fat3a % Shariah Supervision oard. &he oard is appointed b# the bank>s oard of Dire$tors. &he Shariah oard supervises the development and $reation of innovative Shariah-$ompliant investment and finan$ing produ$ts and servi$es. &he oard is empo3ered to issue fat3as on an# matter proposed to it b# different business units of the bank. &he Shariah auditors ensure that all the transa$tions are $arried out in stri$t $omplian$e to Islami$ prin$iples of banking. &his frame3ork along 3ith a stringent $omplian$e to rules has made AI the pioneering organi;ation to pra$ti$e Islami$ finan$e in true letter and spirit. &he name AI has $ome to signif# innovation! finan$ial d#namism! leadership and above all a $omplete assuran$e that all the transa$tions are free from riba 0interest2.
).1-.) #he 37ar6D R7le &he Fat3a % Shariah Supervision oard oversees the appli$ation of different aspe$ts of Shariah in the ank. It also ensures that
all transa$tions are in stri$t $omplian$e 3ith the right of $ontradi$ting 0fat3a2 an# violating pro$edures! if found. &he oard of Dire$tors is obligated to obe# the fat3as! irrespe$tive of 3hether a unanimous or a ma9orit# $onsensus se$ured the de$ision. oard meetings are held periodi$all# or 3henever the need arises. &he rights of the oard are enshrined in Arti$le Seven o the ank>s Memorandum % Arti$les of Asso$iation 0?lauses2.
%utie 78 the Shariah 37ar6
G As an e4pert sour$e on Islami$ Prin$iples 0In$luding Fat3as2! the oard through a representative! usuall# the Ceneral Se$retar# of the oard! supervises the Shariah $omplian$e of all the transa$tions in the ank. G
&o devote time and effort to devising more Shariah $ompliant transa$tional pro$edures! templates and banking produ$ts that enable the ank to adapt to market trends 3hile maintaining a high $ompetitive edge in deposit pro$edures!
investments! and banking servi$es. At the same time! the oard gives its opinion on proposed ne3 templates! and banking transa$tions. G
Anal#sing unpre$edented situations that are not $overed b# fat3a! transa$tional pro$edures or those reported b# different departments! even the $ustomers. &his is to ensure
Shariah $omplian$e
in the ank>s bran$hes and
before the ank Page *1-
develops an# ne3 produ$ts or implements an# ne3 pro$edure. G
Anal#sing $ontra$ts and agreements $on$erning the ank>s transa$tions! as submitted b# the ?hairman of the oard of Dire$tors or an# departmentbran$h 3ithin the bank or requested b# the oard itself so that Shariah $omplian$e $an be evaluated and maintained.
G
:nsuring Shariah $omplian$e and $orre$ting an# brea$hes.
G
Anal#sing approval.
G
Supervising Shariah training programs for the ank>s staff.
G
Preparing an annual report in the ank>s balan$e sheet 3ith respe$t to its Shariah $omplian$e.
G
&he Fat3a % Shariah Supervision oard submits a $omplete annual report for the oard of Dire$tor! summari;ing all the issues referred to the oard! as 3ell as its
administrative
in the implementation
of all banking transa$tions
de$isions! issues and matters that require the oard>s
opinion on the ank>s transa$tional pro$edures.
2.1-.+ A!3*
&he AI>s librar# houses a vast $olle$tion of more than +!''' books on Islami$ Fiqh! la3! e$onom#! banking and Shariah! &he librar# 3as primaril# established 3ith the aim of serving the Fat3a %
Shariah Supervision
oard>s resear$h team and
the AI
2.1-.- Shariah Suervi7r
&he ?lause N of the ank>s Memorandum % Arti$les of Asso$iation requires the oard of Dire$tors to appoint a Shariah Supervisor! responsible for monitoring all the ank>s transa$tional pro$edures and assuring Shariah $omplian$e.
Also the Ceneral Se$retar# of the Fat3a % Shariah Supervision oard! the Shariah Supervisor handles queries about the ank>s administration from staff members! shareholders! depositors and $ustomers! liaises 3ith the Shariah auditors and provides them 3ith guidan$e. 6e submits reports and suggestions to the Fat3a % Shariah Supervision oard and to the ?hairman of the oard of Dire$tors. &he position also $alls for parti$ipation in the ank>s training programmes.
2.1-. Sharia
h Au6iti4
Page | 1
g
&he supervisor# fun$tion forms a part of the Shariah Supervision pro$edures! task being to $he$k Shariah $omplian$e under the guidan$e of the Shariah Supervisor. &he auditors $ontinuousl# adheren$e to the frame3ork
its main
revie3 the ank>s transa$tional pro$edures to ensure $reated b# the Fat3a % Shariah Supervision oard. &he
Shariah auditors submit periodi$ reports to the maintain Shariah $omplian$e.
Shariah Supervisor so as to monitor and
2.1 #ye 78 !4ter4al Eter4al Au6it !4ecti74 Risk ased ?omprehensive Internal Audit Inspe$tion!Euarterl# Foreign :4$hange % Investment Audit! ?ore Risk Management 0?RM2 S#stem Inspe$tion! Surprise Inspe$tion! Spe$ial Inspe$tion! Shariah Audit! Management Audit! ?on$urrent Audit! :4ternal Audit! Regulator#angladesh ank Inspe$tion et$. are $arried out effe$tivel# and effi$ientl#.
2.1/ C7rre746e4t Relati74hi &he ank has $ontinued efforts and endeavor to develop relationship 3ith foreign $orrespondents 3orld3ide to fa$ilitate the International &rade operation of the ank. As on 1*st De$ember )'*1! the number of foreign
$orrespondents is ) anks in 8)
K L
0t3ent# si42
in 8 ma9or international $urren$ies. &he bank also en9o#s substantial $redit
needed 3hi$h is fa$ilitating our international trade.
2.19 Pr76uct a46 Service Pr7vi6e6 by A!3 AI Page | 1/
Depo sit Invest ment
Fore ign &rad e
=adiah ?urrent Deposit 0?D2 Mudaraba Short @oti$e Deposit 0S@D2 Mudaraba Savings Deposit 0MSD2 Mudaraba &erm Deposit 0M&DR2 Monthl# Profit ased &erm Deposit 0P&D2 Monthl# Installment ased &erm Deposit 0I&D A l A r a f a h 0M6D2 Al-Arafah &ermed 6a99 Deposit 0&6D2 Monthl# Installment ased Marriage Savings Investment S$heme 0MIS2 Al-Arafah Savings ond
MS M:
A& M Servi $es
0AS2 Foreign ?urren$# Deposit 0F?D2 Pension Deposit S$heme 0PDS2 ?ash =aqf Deposit S$heme 0?=D2 Mudaraba akhpoti Deposit S$heme 0DS2 Mudaraba Millionaire Deposit S$heme 0MDS2 Mudaraba 0Spe$ial2 Pension Deposit S$heme 0MSPDS2 Mudaraba ,otipoti
o$ke r Servi$ es
Investme nt in Agri$ult ural Se$tor Investme nt in Industria l Se$tor Investme nt in usiness Se$tor Investme nt in Foreign &rade Investme nt in ?onstru$ tion and 6ousing
Investment in &ransportation Se$tor 6ire Pur$hase 06PSM2 Investment S$hemes in Masque and Madrasa 0MMIS
Small :nterprise Investment S$hemes 0S:IS2 ?onsumer Investment S$hemes 0?IS2
Import :4port Remittan $e
0M,DS
Figure )D7 Produ$ts and Servi$es Provided b# AI
2.1 3ra4ch "et7r5 At present AI Page | 19
2.20 Car6
2.21 ree4 3a45i4g =e are a3are that global 3arming is an issue that $alls for a global response. &he rapid $hange in $limate 3ill be too great to allo3 man# e$o-s#stems to suitabl# adapt! sin$e the $hange have dire$t impa$t on biodiversit#! agri$ulture! forestr#! dr# land! 3ater resour$es and human health. Due to unusual 3eather pattern! rising greenhouse gas! de$lining air qualit# et$. So$iet# demands that business also take responsibilit# in safeguarding the planet. Creen finan$e as a part of Creen anking makes great $ontribution to the transition to resour$e-effi$ient and lo3 $arbon industries i.e. green industr# and green e$onom# in general. Creen banking is a $omponent of the global initiative b# a group of stakeholders to save environment. Creen banking is a simple 3ord but its magnitude is signifi$antl# 3ide $overing so$ial ;
environment and e$onomi$al aspe$ts. Creen banking is a devi$e that $onsiders so$ial and 7 e$ologi$al fa$tors to prote$t environment and $onserve natural
resour$es. prote$t
If 3e
environment! 3e prote$t ourselves. Creen bankers think to prote$t environment $onserve po3er and energ# in order to ensure a safer 3orld for the ne4t generation.
and
Islami ank td. eing an ethi$al ank and in $omplian$e to angladesh ank guidelines has formed green
2.22 CSR activitie 78 ?SR is an integral part of $orporate $ulture and ethi$s. AI responds positivel# in ever# sphere of so$ial a$tivities the# are delivering innovative solution to the valued $ustomer and in the same manner the# are also helping different areas of so$ial a$tivit# through their ?SR a$tivities. &o enhan$e so$ial servi$e as part of $orporate so$ial responsibilit#! the ank has fa$ilitated farmers % freedom fighters to open savings a$$ounts 3ith spe$ial fa$ilities of giving profit on dail# balan$e and not reali;ation A$$ount Maintenan$e Fee from those a$$ounts. &he ank has also originated S$hool anking to open savings a$$ounts of s$hool students 0minor2 3ith same fa$ilities as offered to farmers and freedom fighters in operating their savings a$$ounts. During the #ear )'*1 AI a$$omplished different humanitarian and so$ial a$tivities 3hi$h in$lude allo$ation of fund &k.+8.8' million. esides! AI has taken a program to develop make them self-emplo#ed as 3ell as assisting them for emplo#ment in abroad.
manpo3er and
).)).*
&he ank has a Foundation laun$hing philanthropi$ a$tivities. Al-Arafah Islami$ International S$hool % ?ollege and Al-Arafah Islami ank ibrar# are ma9or t3o 3ings for laun$hing philanthropi$ a$tivities.
AlAra8a
h !laic
Al-Arafah Islami$
International S$hool % ?ollege has been established b# the Al-Arafah
o
ank Foundation 3ith a vie3 to building ne4t generation a$$ording to the ideals of pea$e and equalit# of Islam and to establishing banking and other aspe$ts of life in the 3a# of Islam. &he prime aim of this Islami$ International S$hool % ?ollege is to $ontribute to3ards building human resour$e and in the broader sense to ensure human 3elfare. =ith o
Islami
ank
Foundation
has established
Al-Arafah
Su$h institution upto < its kind is for the first time in angladesh. Page | 20
2.22) AlAra8ah !lai 3a45 *ibrary
ibrar# is the $arrier % reservoir of kno3ledge. Al-Arafah Islami ank has sho3n that other than generating profit! it $an also $ontribute signifi$antl# in the field of providing good sour$e of kno3ledge b# establishing a publi$ librar# at 1)! &opkhana Road! ?hittagong haban 0*st floor2! Dhaka! thus strengthening so$ial development. It is situated in sound! health# surroundings. It harbors )1!''' books of referen$e for the resear$hers! students! professionals! bankers! ph#si$ians! engineers! politi$ians! 3riters or 9ournalists! even for the kids. It is open to all from the #ear )''' and 3ell lo$ated % a$$essible to ever#bod#. It pro$ured some e4$eptional $olle$tion of books on religion! e$onomi$s! banking! $omputer s$ien$e! business administration! so$iolog#! :nglish % Arabi$ language and 9uvenile literature in angla! :nglish! "rdu % Arabi$! 3hi$h are ver# rare.
!lai 3a45 *iite6
?hapt er 1 I&: RA&" R : R:I : = #7ic ).*
Isla
mi$ an king ).2 Prin $ipl es of Isla mi$ an king )) Isla mi an king in an glad esh ).+ Defi nitio n of an k
Dep osits ).Dep osit A$$ ount
). Dep osit
Ma nag eme nt )./ Sha ria Inv est me nts ).9 &#p e of Fun ds ). Inv est me nt Res tri$t ions ).* ' Inv est me nt Ma nag eme nt
).1 !laic 3a45i4g Islami$ banking is banking or banking a$tivit# that is $onsistent 3ith the prin$iples of sharia and its pra$ti$al appli$ation through the development of Islami$ e$onomi$s. As su$h! a more $orre$t term for >Islami$ Sharia prohibits a$$eptan$e of spe$ifi$ interest or fees for loans of mone# 0kno3n as riba! or usur#2! 3hether the pa#ment is fi4ed or floating. Investment in businesses that provide goods or servi$es $onsidered $ontrar# to Islami$ prin$iples 0e.g. pork or al$ohol2 is also haraam
).2 Pri4cile 78 !laic 3a45i4g Islami$ banking has the same purpose as $onventional banking7 to make mone# for the banking institute b# lending out $apital. ut that is not the sole purpose either. Adheren$e to Islami$ la3 and ensuring fair pla# is also at the $ore of
Islami$ banking. e$ause Islam forbids simpl# lending out mone# at interest! Islami$ rules on transa$tions 0kno3n as Fiqh al-Muamalat2
and leasing 0I9ara2 In an Islami$ mortgage transa$tion! instead of lending the g bu#er mone# to pur$hase the item! a bank might bu# the item itself from the seller! and re-sell it to the bu#er at a profit!
L arrangement is $alled Murabahah. Another approa$h is :l9ara
An innovative approa$h applied b# some banks for home loans! $alled Musharaka alMutanaqisa! allo3s for a floating rate in the form of rental. &he bank and borro3er form a partnership entit#! both providing $apital at an agreed per$entage to pur$hase the
Page | 22
propert#. &he partnership entit# then rents out the propert# to the borro3er and $harges rent. &he bank and the borro3er 3ill then share the pro$eeds from this rent based on the $urrent equit# share of the partnership. At the same time! the borro3er in the partnership entit# also bu#s the bank>s share of the propert# at agreed installments until the full equit# is transferred to the borro3er and the partnership is ended. If default o$$urs! both the bank and the borro3er re$eive a proportion of the pro$eeds from the sale of the propert# based on ea$h part#>s $urrent equit#. &his method allo3s for floating rates a$$ording to the $urrent market rate su$h as the R 0base lending rate2! espe$iall# in a dual-banking s#stem like in Mala#sia. &here are several other approa$hes used in business transa$tions. Islami$ banks lend their mone# to $ompanies b# issuing floating rate interest loans. &he floating rate of interest is pegged to the $ompan#>s individual rate of return. &hus the bank>s profit on the loan is equal to a $ertain per$entage of the $ompan#>s profits.
$ent reserve banking are kno3n
to e4ist. Islami$ banks have mi$ro-lending
founded b# Muslims! notabl# Crameen 6o3ever! u
Muhammad
5unus!
per institutions
ank! use $onventional
lending pra$ti$es and are
the founder of Crameen ank and
$ollateral and la$k of e4$essive interest in mi$ro-lending prohibition of usur# 0riba2.
).) !lai 3a45i4g i4 3a4gla6eh Islami anking S#stem is be$oming more and more attra$tive da# b# da# to peoples irrespe$tive of nations! religious! $olors and spe$ies. More than 1'' anks % finan$ial institutions are serving Islami banking throughout the 3orld. At present! eight fullfledged private Islami$ $ommer$ial banks and *( $onventional banks through Islami$ 3indo3s and bran$hes are operating in angladesh. About half a do;en $onventional banks have applied to the ?entral ank for being $onverted into Islami$ ones. ?urrentl#! Islami$ banks hold )+ per$ent of total banking deposit having around *' per$ent of the total bank bran$hes. &he $ombined share of Islami$ banks 0e4$luding Islami$ banking bran$hes3indo3s of $onventional banks2 is around *(
1.1.1
based banks and finan$ial institutions and for their better management!
angladesh ank introdu$ed Islami Interbank Fund Market
in )'*). "nder this arrangement! an interested Islami$ finan$ial institution $an pla$e their surplus fund overnight at angladesh ank. Islami$ banks and banks having Islami$ banking bran$hes and 3indo3s ma# borro3 from this overnight. IIFM
fund
!4vete4t
&he Ministr# of Finan$e!
Covernment of angladesh introdu$ed the CII
).).) !laic 3a45 C74ultative F7ru
=
3ith Islami$ anks and ?onventional anks having Islami$ anking ran$hes as members! 3as established in *8 for effe$tive intera$tion! $ooperation! promotion and furthering of the $ause of Islami$
fledged
).).+ Ce4tral Sharia 37ar6 3a4gla6eh
banking in angladesh. Seven fullIslami$ Q
87r !laic 3a45 78
?SI 3as established in )''* and assistan$e to member matters related to harmoni;ation banking poli$ies and also
to offer vie3s banks in of Islami$ pra$ti$es. It
promotes kno3ledge on Islami$ banking b# organi;ing seminars and $ondu$ting training and resear$h on Islami$ Sharia. Seven full-fledged Islami$ anks and ten ?onventional anks having Islami$ banking bran$hes are the members of ?SI.
).+ %e8i4iti74 78 3a45 %e7it Mone# pla$ed into a banking institution safekeeping. ank deposits are to deposit a$$ounts at a banking institution! savings a$$ounts! $he$king a$$ounts
for made su$h as
and mone# market a$$ounts. &he a$$ount holder has the right to 3ithdra3 an# deposited funds! as set forth in the terms and $onditions of the a$$ount. &he deposit
For e4ample!
3hen someone opens a bank a$$ount and
makes a deposit of &k. 8'!''' $ash! the a$$ount holder surrenders legal title to the &k. 8'!''' $ash. &his $ash be$omes an asset of the bankH the a$$ount be$omes a liabilit#.
).- %e7it Acc7u4t A deposit a$$ount is a savings a$$ount! $urrent a$$ount! or other t#pe of bank a$$ount! at //9 a banking institution that allo3s mone# to be deposited and 3ithdra3n b# the a$$ount L holder. &hese transa$tions are re$orded on the bank>s books! and the resulting balan$e is re$orded as a liabilit# for the bank and represents the amount o3ed b# the bank to the $ustomer. Islami banks pa# the $ustomer profit on the funds deposited.
). %e7it Ma4agee4t
s mone# to do business! it should make sure that it 3ill be able to repa# the deposits to the respe$tive $ustomers 3hen the# $laim for it. &he management of all this is $alled deposit management.
)./ Sharia !4vete4t
life in$luding the t#pe of investments allo3ed. For instan$e! interests are $onsidered usur# a$$ording to the Riba rule therefore bonds is prohibited to investors follo3ing the Sharia la3. A Shariah $ompliant fund is an investment vehi$le fund stru$tured in a$$ordan$e to Shariah rules. Shariah funds $an be managed as mutual funds! e4$hange-
traded funds or hedge funds. &he# are in essen$e $ommon funds 3ith an e4tra la#er of ethi$al rules integrated in the investment poli$ies of the fund not dissimilar to so$iall# responsible investing. =hile the funds are required to be full# $ompliant 3ith Shariah rule! the $ompanies stru$turing! managing and promoting the funds do not have to be ne$essaril# Shariah $ompliant.
#ye 78 Fu46 ).9.1 C776itie
$ommodities. e$ause of the restri$tions on the use of derivatives! $ommodities fund make use of t3o t#pes of Shariah approved $ontra$ts It>s a $ontra$t 3here the bu#er of an item funds upfront the produ$tion of the item. A detailed spe$ifi$ation of the item has to be agreed before produ$tion
cc
It>s similar to a for3ard $ontra$t 3here the bu#er pa#s in advan$e for the deliver# of ra3 materials or fungible goods at a given date. &he spot pri$e
of the item in$ludes the profit of the person 3ho has taken the task of pur$hasing good and! of $ourse! the $ost of the produ$t.
business. ?ompanies are also s$reened in order to $he$k for Shariah $ompliant a$$ounting prin$iples. e$ause of the limited pool of $ompanies the funds $an invest into! equit# funds $an have higher volatilit# $ompared to similar funds in the same spa$e.
1..1 Murabaha finan$ing! 3here a fund 3ill bu# goods and resell them to a third part# at a given pri$e. &he pri$e is made of the $ost of goods plus a profit margin. ?ost and margin are agreed in advan$e.
1..+ !jar Funds that a$quire and keep o3nership of an asset 0real estate! ma$hiner#! vehi$les or equipment2 and then makes profits b# leasing it out in return of a rental pa#ment. &he fund is responsible for the management of the asset and 3ill normall# re$eive a management fee. &he leased item must be used in a 6alal manner.
). !4vete4t Retricti74 1..1 Riba &he pa#ment or re$eipt of interests are $onsidered usur# and un9ust. Debt is also disapproved making investments in highl# leveraged $ompanies una$$eptable. Funds $annot pa# fi4ed or guaranteed return on $apital. Instead of borro3ing and lending! Islami$ finan$e relies on sharing the o3nership of the assets and therefore risk and
profitloss
)..2
?omp anies involv ed in prohib ited busine ss a$tiviti es $annot be part of a Sharia h fund strateg #. Prohib ited busine ss a$tiviti es $an relate to food 0produ $tion and sales of al$oho li$ bevera ges in$ludi ng pubs and restaur
ants! pork produ$ ts! toba$$ o2! gambli ng 0$asin os! on-line gambli ng! betting ! lotter# s$hem es2! adult oriente d 0video! maga; ines! on-line materi al! strip $lubs2! dubiou s! immor al and illi$it trades 0prosti tution! drugs2.
)..) Maiir
Islam forbids gambli
ng in an# form. ?onse quenti all#! derivat ives! for3ar ds! option s and futures are prohib ited.
)..+ %ay
Da# trading is $onsid ered akin to maisir.
Marke table se$urit ies genera ll# have a multida# settle ment period! during 3hi$h time the underl #ing instru ments! 3hile $leare d! are not formal l# registe red in the name of the pur$ha ser. As da# traders do not 3ait for settle
ment to $ompl ete! the# are using a t#pe of $redit $ushio n provid ed b# their broker. Some da# traders also rel# on a margin a$$oun t to finan$ e their trading a$tiviti es.
).10 !4ve te 4t Ma4 age e4 t Invest ment manag ement is
a d#nam i$ field 3here a $ertain standa rd of longrange planni ng is needed to allo$at e the fund in divers e field and to minim i;e the risk and ma4im i;ing the return on the investe d fund. ?ontin uous superv ision! monito ring and L
foll o3up are hig hl# requ ired for ens urin g the tim el# repa #me nt and min imi ;ing the defa ult. A$t uall # the Inve stm ent port foli o is not onl # $on stitu ted the ban
k
K manag ement depen ds on the banks invest ment poli$#! portfol io of invest ment! // monito ring! superv ision and follo3 -up of the loan and advan$ e. &heref ore! 3hile anal#; ing the Invest ment Manag ement of AI !
Islami Ba! Limi"#$
?hapte r +
D:P
& #7ic +.) Deposit Cro3th +1
A!3
million 3as general Page | 29
deposit. &he present strateg# is to in$reas e the deposit base through maintai ning $ompet itive profit rates and having lo3 $ost of funds to ensure a better spread 3ith an average return on investm
ent.
+.2 %e7 it r7 th
Figure +A7 Deposit Cro3th 0In million &aka2
=e $an see that the deposit of
AI is in$reasi ng ever# #ear and in )'*1 the amount of deposit 3as *+'! '.88 million taka 3hi$h 3as mu$h higher than )''>s
+.) %e7it Mi Amounts of different deposit produ$ts for the #ear )'*1 P P a g e | 2
Sour$e7 AI
De()sit &i* +, .adia C/rrent A00)/nt &/dara1a Sa2in3s De()sit Other &/dara1a De()sit &/dara1a Term De()sit Bills Pa4a1le
Figure +7 Deposit Mi 4 )'*1
Figure + sho3s the per$entage of different t#pes of deposited amount for the #ear )'*1. =e $an highest amount
see that the deposited $ame from Mudaraba
a$$ounts 3hi$h is a$tuall# different AI .
t#pes of spe$iali;ed
deposit s$hemes provided b#
+.+ %e7it Pr76uct +.+.1 Al(a6iah
Al-=adiah Arafah Islami ank td. as per Islami$ Shariah. &he fund deposited in this a$$ount b# the $lient 3ill be se$ured b# the ank and the ank 3ill be bound to refund this amount full#partiall# on demand of the $lient. &he bank $an invest the deposited amount 3ith other deposits as per Al-=adiah prin$iples of Islami$ Shariah. &he 3eightage of the a$$ount 3ill be ;ero and the $lient 3ill not bear an# profit or loss.
Feature 78 the Acc7u4t
G
G
An# adult having sound mind $an open this 9ointl# 3ith others. An# proprietorship
a$$ount in his her name singl# partnership firm!
or
&his a$$ount is to be opened on introdu$tion of a $urrent a$$ount holderperson a$$eptable to the ank. &o open Al-=adiah $urrent a$$ount! minimum &k. )'''is to be deposited primaril#! 3hi$h is treated as minimum balan$e of the a$$ount. &his minimum balan$e along 3ith required e4$ise dut# must be maintained in the a$$ountH other3ise! the bank reserves the right to return $lient>s
G
Spe$ified amount of $harge 3ill be debited 3ith interval of si4 months as a$$ount maintenan$e fee. esides! the ank $an reali;e other ne$essar# fees.
G
&he a$$ount holder in an# time $an $lose the operation of his a$$ount after surrendering his $heque book % submitting the appli$ation dul# signed on reali;ation of $losing $harge.
G
During banking hour multiple deposit % 3ithdra3al b# $heque is permitted. In this regard! all $lauses of @egotiable Instrument A$t 3ill be appli$able.
G
ank statement balan$e $onfirmation $ertifi$ate is generall# issued t3i$e 0half #earl# and #earl#2 in a #ear 3ithout an# $ost. A$$ount statement is also provided to $lients demand on reali;ation of spe$ified $harges.
A & % :4$ise Dut# is appli$able as per govt. rules.
+.+.) Mudaraba Savings Deposit 0MSD Page | )
Mudaraba savings deposit is opened under the Mudaraba prin$ipal of Islami Shariah. "nder the above prin$ipal the $lients is the Shaheb-Al
Rule a46 Regulati74
G Mudaraba i.e. Deposit of one part# and on the basis of operation b# another part# this deposit is taken. G # providing Introdu$er of the a$$ount as required b# the bank and b# depositing a minimum amount an# depositor or multiple depositors $an open single or 9oint a$$ount. An# edu$ational institute! ?lub! Asso$iation or So$ial institutes $an open this a$$ount. G &he bank ma# merge amount $olle$ted through this deposit and ma# invest in an# shariah allo3ed investments. G
After determining the annual profitloss
of the deposited amount or &k. )'''-! the lo3est be 3ithdra3n 3ithout
g
noti$e. If an# amount e4$eeding the above is 3ithdra3n 3ithout providing '( da#s i G If an a$$ount is $losed before the de$laration of $urrent #ear>s depositor 3ill have to take profit as per previous #ears de$lared profit rate.
G
&he ank has the right to den# opening an# a$$ount or $an $lose do3n an# e4isting 3ith sho3ing an# reason.
G
&he bank operates the $lient a$$ounts 3ith utmost attention but still if an# mis$al$ulation o$$urs the bank holds the right to make ad9ustments and re$tif# the problems. ut in this situation if an# mis$reants o$$ur 3hi$h is $aused b# the Page J 1) $lient the bank 3il l not be held liable for that.
G
&he ank ma# $hange amend re$tif# an# rules and regulations of this a$$ount and the $lient must abide b# the rules.
+.+.1
Mudaraba Short @oti$e Deposit 0S@D2 is a profit bearing Mudaraba deposit a$$ount intended for those people 3ho are involved in business or their transa$tions are frequent but do follo3 a pattern. It enables people to operate a kind of ?urrent A$$ount 3hi$h in$urs profit. ike in other Mudaraba deposit produ$ts! $ustomer 3ill a$t as the $apital supplier of the investment and the ank a$ts as the investormudarib. &he deposits held in these a$$ounts shall be pa#able on short noti$e period but the noti$e must not be less than ( da#s.
+.+.+ Mu6araba #er %e7it
Mudaraba &erm Deposit 0M&DR2 is a mode of deposit under Mudaraba prin$iples of Islami$ Sharia. It is a profit loss bearing a$$ount. &hese deposits are repa#able sub9e$t to a period of noti$e and hen$e kno3n as time deposits or time liabilities meaning thereb# that these are 3ithdra3 able sub9e$t to a period of noti$e and not on demand. Deposits under M&DR are a$$epted for different tenures as de$ided b# the ank and are entitled to re$eive profit on their deposit on the basis of 3eightage as de$ided b# the management. A re$eipt is issued against ea$h deposit under M&DR.
%i88ere4t #e47r 78 M#%
R Pr76uct
G
Mudaraba &erm Deposit - * month
G G
Mudaraba &erm Deposit - 1 months Mudaraba &erm Deposit - B months
G
Mudaraba &erm Deposit - *)
+.+.-
It is a monthl # saving s s$hem e to se$ure future 3ith ease. A small saving s of toda# 3ill provid e #ou $omfor t tomorr o3. Deposi t $an be made b# $onven ient monthl # install ment Pa s e
depend ing on in$om e. Install ments $an be
deposit ed in an# 3orkin g da# of the month. :ven advan$ e install ment ma# be deposit ed. Profit 3ill be $al$ula ted on dail# basis upon deposit . &o make it more attra$ti ve deposit ed amoun t 3ill be 3eight ed *.'8! 3hi$h
is '.'8 per$en t higher than 1 #ears term deposit . Durati on of the deposit 3ill be 8! ! *' or *) #ears along 3ith install ment amoun t of either &k. )''-! 1''-! 8''-! *'''-. An# person above * of a minorT &his 3orth 3hile s$hem e 3ill make deposit to
gro3 in the follo3i ng ratio7
8
* ) +
)
8 *
Sour$e 7 AI
+.+. Al Ara8a h
AlArafah Islami ank imite d has introdu $ed a Month l# install ment based 6a99 Deposi t for the
*
middle $lass pious Musli ms./n
)! 88!8''- and for the up$oming #ears it has been graduall# in$remented in the rate of 8. A variet# of maturit# period and installment si;e 3ill give #ou the option to make it #our o3n affordable s$heme. If the depositor 3ants to go for 6a99 before maturit# Page J period! heshe $an amend the residual amount 3ith the deposit and fulfill hisher hol# 3ish. :stimated e4penditure for 6a99 for ne4t )' #ears after )'' and the relative installment amounts 3ill be as under7
&ear
M74thly !4talle4t
(8''''8'*')' *'(' **(' *1(8 *+8' *B'' *((' )'8' )1B' )B'1*+' 1''
Etiate6 Ee46iture Savi4g 87r ;ajj
B18''' B'8'''8''''88B'''81*''' +8'''+BB'''+8'B'' +1B''' +*+''' 1'''' 1'''' 1B(+'' 1+)'1)1'''-
1*B8'' +'BB''*'''' )''''=ebsite 0
)(8'' )+'')('''')888''-
#e #ere6 re6 ;ai ;aii %e7 %e7i itt <1 ;P
=
For the people 3ho hold the hol# desire to go for the 6a99 3ith a onetime deposit along 3ith bank>s given profit there on! Al-Arafah &ermed 6a99 Deposit has been introdu$ed. After maturit#! onetime deposit 3ill meet up the e4penses of 6a99.
e
6a99 must be done. "nder no $ir$umstan$es the deposited amount 3ill be 3ithdra3n. After maturit#! maturit#! if the deposited amount along 3ith a$$umulated profit is less than the 6a99 e4penditure on that parti$ular #ear! the depositor $an make up the residual amount at on$e and go for pilgrimage. A separate form has to be filled up to open &ermed 6a99 deposit. "nder this s$heme one $an open an a$$ount in the name of a minor or a $hild too. &a4 3ill be appli$able on the deposited amount along 3ith profit a$$ording to the $ountr# la3.
:stimated e4penditure for 6a99 for ne4t )8 #e ars after )'' and the relative one time deposit 3ill be as under7
&
Eti ate6 ee4 e 87r ;ajj
* '' ''
*B (' ''
*8 ' ''
* B ' ' '
1 ) 1 ' ' '
* ( B ' ' '
1
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+
+ 1 B ' ' '
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+
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+ 8 ' 8 ' '
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+ B B ' ' ' -
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*
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B
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1 ( *
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B B ( 8 ' ' -
)
(
(
B + ' ' ' -
B
B
B 8 B =ebsite 0 M74thly !4talle4t 3ae6 Marriag !4vete4t Schee
*! '''and make the s$heme more desirable. &he main attra$tion of the s$heme is that! profit 3ill be a$$umulated on deposit in a dail#-sta# basis 3ith a 3eightag of '. rate. &his fabulous s$heme $omes 3ith e4$iting
investment fa$ilit#.
+.+. Cah (a>8
In the oluntar# Se$tor! AI
&his s$heme has been 3ell re$eived b# the publi$ in general for its unique featu eaturres. es. AI as a pioneer of this innovative finan$ial produ$t of so$ial $apital mobili;ation has re$eived both lo$al % international a$$reditation. # opening a ?ash =aqf Deposit A? someone $an get an opportunit# to do 3elfare to the mankind through Sadaka-e-/ariah. AI urges to all religious % affluent persons of the so$iet# to $ome for3ard to mobili;e ?ash =aqf Deposit so that the profit ma# be utili;ed for the 3ell-
being of mankind. &he Cuidelines for operation of this s$heme are stated belo37 ?ash 3aqfs shall be a$$epted as endo3ment in $onformit# 3ith the Shariah. ank 3ill manage the 3aqf on behalf of the 3aqif.
or institution0s2! institution0s2! those ?ash =aqf 3ill be treated as Ceneral ?ash =aqf and the profit of those A?s 3ill be spent for 3elfare of mankind in <1= the field of <1= Famil# Rehabilitation 0)2 :du$ation % ?ulture 012 6ealth % Sanitation 0+2 So$ial "tilit# and 082
profit to an# spe$ifi$ spe$ifi$ individual0s2
G
&he amount deposited in the ?ash =aqf A?s o 3ill be invested as per ank>s o3n L profit at the highest rate offered b# the ank from time to time. &he 3aqf amount 3ill remain inta$t and onl# the profit amount 3ill be spent for the purpose0s2 spe$ified b# the =a =aqif. qif. "nspent profit amount 3ill automati$all# be added to 3aqf amount and earn profit to be gro3n over the time. @o $heque book 3ill be issued in this a$$ount.
o
Page | )9
*!''' 0one thousand2 onl# 0or equivalent foreign $urren$#2. &he subsequen t deposits shall also be made in hundred or in multiple of hundred &akas. 6o3ever! Ceneral ?ash =aqf A?s 03here name of benefi$iar # 3hether Individual 0s2 or Institution 0s2 are not mentioned
2 ma# be opened b# depositing a minimum sum of &k. *!''' onl#. Spe$ifi$ ?ash =aqf A?s 03here name of benefi$iar # 3hether Individual 0s2 or Institution 0s2 are mentioned 2 b# depositing a minimum sum of &k. 8!''' % above
. ?ash 3aqf shall be a$$epted in spe$ified endo3me
nt Re$eipt ou$her and a ?ertifi$ate for the entire amount shall be issued as and 3hen the de$lared amount is built. A$$ount of ?ash =aqfs are maintaine d in a separate ledger and ne$essar# $harges as per rules ma# be dedu$ted therefrom. In $ase of an# $hange of address of the =aqif or benefi$iar #! must be informed b# the =aqif to the ank
immediate l#. ank ho3ever reserves the right to regret to open an# ?ash =aqf A$$ount. &he rules of ?ash =aqf A$$ount are sub9e$t to amendme nt in $onformit # 3ith the Shariah at an# time b# the ank.
+.+.10 Mu6arab a *a5h7ti %e7it Schee <*%S
Islami ank imited has brought this tremendo
us s$heme to make the dream of be$oming a hundred thousand taka true.
bran$h. &a4 L 3ill be appli$able on the deposited amount along 3ith profit a$$ording to the $ountr# L8 2
give standing order to make pa#ment of the installment maintained 3ith the bran$h.
from
his savings a$$ount
Peri76
M74thly %e7it ) year - year 9 year 10 year 12 year
Page | )
Etiate6 retur4 a8ter aturity
2,)2-H
1,00,000H
1,2/-H
1,00,000H
+-H
1,00,000H
+-0H
1,00,000H
))0H
1,00,000H
=ebsite 0
+.+.11 Mu6araba Milli74aire %e7it Schee
3hi$h is '.'8 more than that of a 1 #ears deposit. Monthl# installment $an be deposited on an# 3orking da# from an# bran$h.
+ &ear - &ear
B &ear
)++''-
Etiate6 retur4 a8ter aturity eri76
0* Million2
*(81'
a$s
*18''
a$s
*'''
a$s
/ &ear 10 &ear 12 &ear
''-
a$s
8+''-
a$s
+*''
a$s
1- &ear
)('-
a$s Sour$e7
*
AI
Page | +0
+.+.12 Mu6arab
An unparallel s$heme to make small savings turn into a line of in$ome in future. In this simple but attra$tive s$heme! savings 3ill be a$$umulated in monthl# installments. &he in the future it 3ill be sour$e of monthl# in$ome.
3ill be appli$able on the deposited amount along 3ith profit a$$ording to the $ountr# la3.
1 ' ' '
+ ' ' '
M 7 4t E E E E E E hl t t t t t ti y i i i i i at % at at at at at e6 e e e e e e 6 6 6 6 6 7 it 6 6 6 74 e 7 e 7 e thl 4t 4t y 7 hl 7 hl 7 e it y it y it 4 i7 it e it e it 4 h 4 h 4 h 87 i7 i7 r r7 4 r7 4 r7 8it 87 8i 87 8it 4e t r t r 1a8 4 a8 4 a8 y te e te e te e a r t r t r - - 1 1 1 r 0 0 - ye ye y ar ar y e ye e a ar a r r
+ * )
'
8 ' ' '
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+
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Sour$e7 AI =ebsite 0
+
,otipot i Deposit S$heme 0M,DS2 million
requirement. An# person above * $an open this magnifi$ent s$heme. :ven an M,D S $an be opened on behalf of a minorT
Page | +1
&he main attra$tion of this Mudaraba-based s$heme is that! profit 3ill be a$$umulated on deposit in a dail#-sta# basis. In this s$heme! profit 3ill be given 3ith a 3eightage of *.'8! 3hi$h is '.'8 more than that of a 1 #ears deposit. Monthl# installment $an be deposited on an# 3orking da# from an# bran$h.
Period of Deposit Monthl# Installment :4peeted return after maturit# period 1 5ears )++'''-
* ?r
ore + 5 ea rs
*
*
? 8 5 ea rs
r
r
*
*
?r B 5 ea rs
o
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*
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%7uble 3e4e8it %e7it Schee
=
Page | +2
*'!'''or its multiple. "nder this s$heme 3ith life of B #ears! deposit 3ill earn profit in an in$remental ratio. &hat>s 3h# 3ithin 9ust B #ears of time deposit 3ill be doubled in return. &a4 3ill be appli$able on the deposited amount along 3ith profit a$$ording to the $ountr# la3. &his $onvenient s$heme $omes 3ith an e4$iting investment fa$ilit#.
Al-A%aa' Islami
Ba! Limi"#$
?hapter 8
I@:S &M:@ & MA@A C:M: @ &
#7ic Investment
1 -.+ ?lassified Investmen t Ratio -.- Mi$ro! Small % Medium
:nterprise s 0MSM:2 Investmen t -. Agri$ultur al Investmen t -./ Investmen t for Cro3ing Spi$es at a o3est Profit Rate 0+2
S$heme -.12
Modes of Investmen t of AI -.1) Investmen t pro$essing of AI
-.1 !4vete4t 78 A!3 *)8!(*8.1 million 1*st 0@et f PR2 in the previous sho3ing an
as on De$ember *'B!B8'.+) of million #ear
in$rease b# *(. . &he investment portfolio of the bank is 3ell diversified and $overs a Page J +) broad spe$trum of businesses and industries in$luding read#made garments! te4tile! edible oil ! ship s$raping! steel % engineering! $hemi$als! pharma$euti$als! $ement! tele$ommuni$ation! $onstru$tion! health $are! real estate! edu$ation! transport and investment under $onsumer s$hemes. &he bank have geared up efforts to improve the re$over# rate of disbursed investment and also taken adequate measures for $onverting the $lassified investment into performing assets. As a result! $lassified investment of the bank $ould be kept at a lo3 level far belo3 the national average. It is ).(( in the bank as on 1* De$ember )'*1. &he bank gives top-most priorit# to the $reation of qualit# assets and does appropriate risk grading 3hile approving
$ommer$ial! trade and pro9e$t investment to different $lients.
-.2 !4vete4t r7th
investment of AI is
from )'' to )'*1. =e $an see that the in$reasing ever# #ear as 3e sa3 the same about deposit in $hapter
+ 0Figure +A2. In )'*1 3as mu$h higher than )''>s Page | ++
-.) Sect7r (ie !4vete4t 201) Se$tor 3ise invest amounts of AI
for the #ear )'*1
Sect7r
#a5a i4 illi74
Agri$ulture! Fishing and Forestr# *!B*(.' Industr# 8(!''1.(' ?onstru$tion )!11+.+' =ater 3orks % Sanitar# Servi$e *!+.' &ransport % $ommuni$ation !)B).8' Storage 1*.) &rade Finan$e +!*).)' Mis$ellaneous *+!1B.'* &otal 0In$luding Profit Re$eivable2 *1+!81'. ess "nearned Profit on Investment !*8.+ #7tal
*)8!(*8.1
Sour$e7 AI Annual Report )'*1! page 1B
a $ F ( % # s "% )
*
P a g e J + 8
Wa"#% W(%!s & Sai"a%) S#%+i,#s
C(mm i,a"i( S"(%a.# T%a$# Fia,# Mis,#lla #(s
Se$tor =ise Investm ent 02
of the investm ent 3as made to this se$tor. Se$ond highest investm ent 3as made to trade finan$e. About 1B. of the total amount 3as invested to trade finan$in g se$tor.
-.+ Clai 8ie6 !4vet e4t Rati7 An# bank investm ent that is in danger of default is $lassifie d investm ent. ?lassifi ed investm ents have unpaid interest and prin$ipa l outstand ing! and it is un$lear 3hether the bank 3ill be able to re$oup the
investm ent pro$eed s from the borro3e r. anks usuall# $ategori ;e su$h investm ents as adversel # $lassifie d assets on their books.
target is belo3 ).((.
Page | +
/00 1 /02 0 /02 2 /02 / / 0 2 *
Figure 8?7 ?lassified Investmen t Ratio 02 3as mu$h higher than previous #ears. &hat is not a good sign for the profitabili t# of the bank. &he bank has alread# taken
ne$essar# a$tions to put the per$entag e belo3 ).(( in )'*+
-.Micr7, Sall Me6iu E4ter rie
platform for 9ob $reation! in$ome generatio n! and developm ent of for3ard and ba$k3ard industrial linkages. MSM:s o$$upied a unique position in the e$onom# of anglades h. Mi$ro! Small and medium enterprise s 0MSM:s2 make up the largest portion of the emplo#m ent base in man# developin g
$ountries and! indeed! are often the foundatio n of the lo$al private se$tor. G @o3 the MSM:s are not onl# $on$entrat ed to lo3-te$h! traditional ! and agro based L e$onomi$ a$tivitiesH these are spread over other nontraditional manufa$t uring and L servi$e se$tor as 3ell. &o a$hieve high and sustained
e$onomi$ gro3th! a triggering for$e is mandator # to e4it from endemi$ povert# and so$ioe$onomi$ deprivatio n. MSM:s $onstitute the dominant sour$e of industrial emplo#m ent in anglades h 0'2! L and about ' of the industrial units fal l into this $ategor#. &he a$tual performan $e of MSM:s! ho3ever! varies depending on
the relative e$onomi$ effi$ien$#! the g ma$roe$o nomi$ poli$# environm ent and the spe$ifi$ promotion poli$ies pursued for their U// benefit.
&o ensure proper manifestation and rapid advan$ement of Mi$ro! Small % Medium :nterprises! a number of s$hemes are running in this bank. In the light of a unique definition of angladesh ank! the bank is giving a priorit# over finan$ing to three $ategories of enterprises vi;. Industr#! &rade % Servi$es. ased on De$ember )'*1! total MSM: investment portfolio is B!*1.B' million! 3hi$h is 8).B of &otal Investment portfolio. Among them )+.1' million is under Small :nterprises and 1B+.1' million is under Medium :nterprises. Parti$ipation of Small :nterprises is +) of &otal MSM: Investment. &he bank prior Area Approa$h Method 3hen MSM: finan$ing. &o speed up MSM: investment flo3 and to in$lude in people 3ho are be#ond the range of banking fa$ilities! s$hemes named >Small are running in the bank. =ith s$hemes! operation of $ollateral se$urit# free S:IS % M:IS investment is $ontinuing in all **'
these
De$ember! )'*1 Mi$ro! Small % Medium :nterprise Investment P7rt87li7 9,1).0
&erms % ?onditions Stipulated b# the ank S:IS % M:IS 0?ollateral Se$urit# Free Investment! in$luded MSM:2 Portfolio &k. 8).8) Million Minimum Investment &k. 8'!'''.'' Ma4imum Investment &k. (''!'''.'' @umber of ran$hes under the s$heme Rate of Profit -*' Ma4imum Duration 1 #ears Repa#ment S#stem Monthl# Installment
Page | +/
Re$over# Rate .(( &erms % ?onditions
MSM : P7rt87li7 78
Pa.# 3 45
9
I il Figure 8D7 MSM: Investments of AI 0In million &aka Figure 8D sho3s that AI invested highest amount of mone# on MSM: se$tor in )'*1. Around B*1 #ears.
Ca"#.(%)6is # MSME D#+#l(7m# " <"uber 78 clie4t=
I$s"%) 3 S#%+i,# T%a$#
8
Figure 8:7 ?ategor# =ise MSM: Development 0?lient Per$entage2
Figure 8: sho3s per$entage of $ategor# 3ise MSM: investment $lients. Most of the $lients are from trade se$tor 0B2! industr# se$tor $lients **
Page | +
-. Agricultural !4vete4t &o en$ourage the marginal farmers of angladesh! bank is pa#ing massive attention to invest on agri$ultural se$tors. &he main items of agri$ultural se$tors are- $rops! fisheries! 3arehouse! povert# alleviation! irrigation! livesto$k development et$. At the end of De$ember )'*1! total agri$ultural investment portfolio is &k. *B8'.B8 million of the fis$al #ear )'*1-)'*+. =ith $ollateral and 3ithout $ollateral both are pra$ti$ed in agri$ultural investment. &he report as on 1* De$ember! )'*1 is sho3n in the table7
Agricultural !4vete4t
Portfolio &k. *B8'.B8 Million Fisheries Povert# alleviation ivesto$k Development =arehouse of $orps ?rops
&k. B8'.)8 million &k. )*(.)8 million &k. *.1 million &k. *+.(8 million &k. B.8 million &k. +.B) million 1(!*+* Persons (.)-*1 .) Stipulated b# the ank
S#,"(%6is # A.%i,l"%a l I+#s"m#" /02/-2 * Li2e St)0k Cr)(s Fisheries P)2ert4 alle2iati)n .areh)/se )f Cr)(s Others Figure 8F7 Se$tor 3ise Agri$ultural Investment )'*)-)'*1 Figure 8F sho3s that 1 of the agri$ultural investment 3as on fisheries. It 3as the highest amount of agri$ultural investment during )'*)-)'*1. o3est amount 3as invested on 3arehouse of $rops 0*2.
-./ !4vete4t 87r r7i4g Sice at a *7et Pr78it Rate <+?= As per instru$tion of angladesh ank! and to in$rease the produ$tion of different t#pes of spi$es like Pulse!
De$ember! )'*1 "a e 78 Cr7
Pulse!
!4vet e4t A7u4t
Spi$e
and Mai;e &k. *.' millio n Sour$e7 AI Annual Report )'*1! page 1
Jhaerbari !4vete4t Schee has laun$hed a ne3 produ$t named Al-Arafah ,hamerbari Investment S$heme 0,hamerbari2. this
=ith
produ$t! the bank 3ork for a farmer>s $ommunit# around the ran$h area. Field offi$ials Page J 8* motivate farmers to gro3 the potential $orps based on their previous farming e4perien$e. &his s$heme has an innovative a$tion to develop the $rop se$tor of angladesh. AI has 1+.) Millio n of investment portfolio among )8(+ farmers under this s$heme so far.
-. !4vete4t 74 (7e4 E4trere4eur About 8' of the populations of angladesh are 3omen. =omen parti$ipation in the mainstream of e$onomi$ a$tivities espe$iall# in the produ$tive se$tors is $ru$ial for attaining sustainable e$onomi$ gro3th! povert# redu$tion and 3omen>s empo3erment. ut 3omen parti$ipation in e$onomi$ se$tor is inadequate and the number of 3omen entrepreneurs is ver# lo3 $ompared to that of their male $ounterparts. In fa$t! there e4ist man# obsta$les in 3omen parti$ipation in the mainstream of e$onomi$ a$tivit# although the degree of integrit#! devotion! $reativit# and e4pertise of 3omen make us surprised. :spe$iall# 3omen parti$ipation in mi$ro$redit programs and read#made garments industr# is $ontributing signifi$antl# to the $ountr#>s industriali;ation. Similarl#!
parti$ipation of 3omen entrepreneurs in SM: se$tor is vital for the flourishing of angladesh e$onom# and enhan$ing 3omen empo3erment. Al-Arafah Islami ank td. is 3orking 3ith 3omen entrepreneurs to make them $apable of earning b# $onne$ting 3ith $ountr#>s e$onomi$ a$tivities. AI gives priorit# to 3omen entrepreneurs
to invest on various produ$tive se$tors. #
the side of $ollateral se$ured investment! $ollateral se$urit# free investment is also $onsidered in the question of 3omen development. is sho3n in the table7 =omen :ntrepreneur Investment P &k. 8' ).1' Mill io n &er ms % ?o ndi tio ns
Sour$e7 AI Annual Report )'*1! page 1
Stip ulat ed b# the an k
-.10 raee4 Sall !4vete4t Schee
de$ade.
<S!S
a$tivities in the last one and a half &his e4perien$e
has made important $ontributions to the emergen$e of this Page | -2 $on$ept globall#. Crameen Small Investment S$heme 0CSIS2 is ver# mu$h related to ?ottage Industr#:nterprise defined b# angladesh ank.
%e8i4iti74 78 C7ttage !46utryHE4terrie
As per angladesh ank SM:SPD Instru$tion ?ir$ular @o. *! Dated7 * /une! )'**! ?ottage Industr#:nterprise means as follo3s7
C(""a. # I$s"%)9 E"#%7%is#
Fi;#$ Ass#"s Val # i Ta! a A$9( % A""%i:"#s $# E;,l$i . La T("al % $ Nm:# % ( "'# ,a"#.(%i# & Bil$i. #m7l()## s s
Less Tha n % La 0 Less Tha n % La 0
Sour$e7 angladesh ank =ebsite 0 Small
Less Tha n !" Less Tha n !
this s$heme helps farmers! labours! fishermen! mi$ro businessmen and small entrepreneurs. Another important ob9e$tive of this s$heme is to give priorit# to make e$onomi$all# self-dependent of rural 3omen entrepreneur. &o get investment under this s$heme! no $ollateral se$urit# is required. Repa#ment s#stem is 3eekl# installment basis. asi$all#! this s$heme is one kind of supervised investment s#stem and skilled personnel are 3orking in different bran$hes to ensure $ontinuous supervision.
is sho3n in the table7
@umber of illages ?overed
@umber of ran$hes under the s$heme @umber of Samit
Rate of Return
&erms % ?onditions
De05! 6 Figure 8C7 Cradual Development of CSIS
graduall#
in$reased during the #ear )'*1. In
the number of $lient 3as )8!81.
S7lar E4ergy !4vete4t Schee Solar is laun$hed $risis benefits
:nerg#
Investment
S$heme>
in order to fa$e the present ele$tri$it# and to spread the of
rene3able energ# among the rural people. &his program treats as an innovative step on the histor# of Private anking Se$tor in angladesh. A$tuall#! solar energ# is a rene3able! effi$ient! and non-polluting energ# sour$e. 6omeo3ners! 3ho install solar s#stems! are helping to redu$e the emission of greenhouse gases 3hi$h have a dire$t relation to global 3arming. &his s$heme also has unveiled the 3ide field of Creen anking $on$ept! the burning issue.
have alread# established )!8'!(+' =att Peak of ele$tri$it# among 8!'** families through )* Rural ran$hes so far. &he bank is running this program 3ith o3n funding as 3ell as permanent skilled personnel. is sho3n in the table7
AlAra8ah S7lar E4ergy !4vete4t Schee
:le$tri$it # Provided
)!8'!(+' =att Peak
@umber of privileged Famil#
8! ' * *
@umber of ran$hes under the s$heme Rate of Return
Repa#m ent s#stem
Re$ove r# Rate
&erms % ?onditions
l l
Do3n pa#ment % Monthl# Installment asis
. + )
*L* l
Figure 867 Cradual Developm ent of Solar :nerg# Investment ?lient 0@umber2 in )'*
sho3s that number of solar energ# investment $lient has been graduall# in$reased during the #ear )'*1
-.12 M76e 78 !4vet e4t 78 A!3 =hen mone# is deposited in the AI ! the bank! in turn! makes investment s in different forms approved b# the Islami$ Shariah 3ith the intention to earn a profit. @ot onl# a bank! but also an individual or organi;atio n $an use Islami$
modes of investment to earn profits for 3ealth ma4imi;ati on. Some popular modes
of
investment of AI>s dis$ussed belo37
-.12.1 Murabaha h
&his $on$ept refers to the sale of goods at a pri$e. &his in$ludes a profit margin
agreed to b# both parties. &he pur$hase and selling pri$e! other $osts! and the profit margin must be $learl# stated at the time of the sale agreement. &he bank is $ompensat ed for the time value of its mone# in the form of the profit margin. &his is a fi4edin$ome loan for
the pur$hase of a real asset 0su$h as real estate or a vehi$le2! 3ith a fi4ed rate of profit
determined b# the profit margin. &he bank is not $ompensated for the time value of mone# outside of the $ontra$ted term 0i.e.! the bank $annot $harge additional profit on late pa#ments2H is settled.
ho3ever! the asset remains as a mortgage 3ith the bank until the default
Page J 8B -.12.2 3ar Muaiial
mua99al means a $redit sale. &e$hni$all#! it is a finan$ing te$hnique adopted b# Islami$ banks that takes the form of murabahah mua99al. It is a $ontra$t in 3hi$h the bank earns a profit margin on the pur$hase pri$e and allo3s the bu#er to pa# the pri$e of the $ommodit# at a future date in a lump sum or in installments. It has to e4pressl# mention $ost of the $ommodit# and the margin of profit is mutuall# agreed. &he pri$e fi4ed for the $ommodit# in su$h a transa$tion $an be the same as the spot pri$e or higher or lo3er than the spot pri$e. ai>
3ai Sala
ai salam means a $ontra$t in 3hi$h advan$e pa#ment is made for goods to be delivered later on. &he seller undertakes to suppl# some spe$ifi$ goods to the bu#er at a future date in e4$hange of an advan$e pri$e full # paid at the time of $ontra$t. It is ne$essar# that the qualit# of the $ommodit# intended to be pur$hased is full # spe$ified leaving no ambiguit# leading to dispute. &he ob9e$ts of this sale are goods and $annot be gold! silver! or $urren$ies based on these metals. arring this! ai Salam $overs almost ever#thing that is $apable of being 3orkmanship.
definitel#
des$ribed as to quantit#!
qualit#!
and
3aic 8eature a46 c746iti74 78 Sala:
G
&he transa$tion is $onsidered Salam if the bu#er has paid the pur$hase pri$e to the seller in ful l at the time of sale. &his is ne$essar# so that the bu#er $an sho3 that the# are not entering into debt 3ith a se$ond part# in order to eliminate the debt
3ith the first part#! an a$t prohibited under Sharia. &he idea of Salam is normall#
3
$annot be effe$ted on a parti$ular $ommodit# or on a produ$t of a parti$ular field or farm. For e4ample! if the seller undertakes to suppl# the 3heat of a parti$ular field! or the fruit of a parti$ular tree! the salam 3ill not be valid! be$ause there is a possibilit# that the $rop of that parti$ular field or the fruit of that tree is destro#ed before deliver#! and! given su$h possibilit#! the deliver# remains un$ertain. &he same rule is appli$able to ever# $ ommodit# the suppl# of 3hi$h is not $ertain.
ne$essar# that the quantit# of the $ommodit# is agreed upon in unequivo$al terms. If the $ommodit# is quantified in 3eights a$$ording to the usage of its traders! its 3eight must be determined! and if it is quantified through measures! its e4a$t measure should be kno3n. =hat is normall# 3eighed $annot be quantified in measures and vi$e versa.
that the deliver# of both be simultaneous. 6ere! salam $annot 3ork. Similarl#! if 3heat is bartered for barle#! the simultaneous deliver# of both is ne$essar# for the validit# of sale. &herefore the $ontra$t of salam in this $ase is not allo3ed. &his is the most preferred finan$ing $omplian$e.
stru$ture and $arries higher order Shariah
!iarah
I9arah means lease! rent or 3age. Cenerall#! the I9arah $on$ept refers to selling the benefit L of use or servi$e for a fi4ed pri$e or 3age. "nder this $on$ept! the ank makes available equipment su$h as plant! offi$e automation! vehi$le for a fi4ed period and pri$e.
*-
Page J 8(
<;ire Purchae=
Parties enter into $ontra$ts that $ome into effe$t seriall#! to form a $omplete lease bu#ba$k transa$tion. &he first $ontra$t is an I9arah that outlines the terms for leasing or renting over a fi4ed period! and the se$ond $ontra$t is a ai that triggers a sale or
pag
e
pur$hase on$e the term of the I9arah is $omplete. For e4ample! in a $ar finan$ing fa$ilit#! a $ustomer enters into the first $ontra$t and leases the $ar from the o3ner 0bank2 at an agreed amount over a spe$ifi$ period. =hen the lease period e4pires! the se$ond $ontra$t $omes into effe$t! 3hi$h enables the $ustomer to pur$hase the $ar at
an agreed pri$e. &he bank generates a profit b# determining in advan$e the $ost of the item! its residual value at the end of the term and the time value or profit margin for the mone# being invested in pur$hasing the produ$t to be leased for the intended term. &he $ombining of these three figures be$omes the basis for the $ontra$t bet3een the ank and the $lient for the initial lease $ontra$t. &his t#pe of transa$tion is similar to the $ontra$tum trinius! a legal maneuver used b# :uropean bankers and mer$hants during the middle Ages to sidestep the ?hur$h>s prohibition on interest bearing loans. In a $ontra$tum! t3o parties 3ould enter into three
$on$urrent and interrelated legal $ontra$ts! the net effe$t being the pa#ing of a fee for the use of mone# for the term of the loan. &he use of $on$urrent interrelated $ontra$ts is also prohibited under Shariah a3.
!jarah(al!>ti4
an integral part of the lease $ontra$t to make it $onditional. &he rentals as 3ell as the pur$hase pri$e are fi4ed in su$h manner that the bank gets ba$k its prin$ipal sum along 3ith profit over the period of lease.
-.12.- Mu6arabah
is a spe$ial kind of partnership 3here one partner gives mone# to another for investing it in a
$ommer$ial enterprise. &he $apital investment should normall# $ome from both partners. &he Mudarabah 0Profit Sharing2 is a $ontra$t! 3ith <@: part# providing *'' per$ent of the $apital and the other part# providing its spe$iali;ed kno3ledge to invest the $apital
and manage the investment pro9e$t. Profits generated are shared bet3een the parties a$$ording to a pre-agreed ratio. If there is a loss! the first partner rabb-ul-mal his $apital! and the other part#
mudarib
Page | -
-.1) !4vete4t r7cei4g 78 A!3
Islami ank 0AI 2 makes its investment de$ision through su$$essfull# passing the follo3ing $ru$ial steps6ere! investment taker 0$lient2 approa$hes to an# of the bran$h of Al-Arafah Islami ank angladesh imited 0AI2 . &hen he talks 3ith the manager or respe$tive offi$er 0investment2. Se$ondl#! bank $onsiders five
Cenerall#! bank anal#ses the follo3ing five ?hara$ter ). ?apa$it# ). ?apital
+. ?ollateral 8. ?ondition
-.1).1 Alicati74 Stage
dul# respe$tive information 3hi$h is $ru$ial for the initial of investment proposal. Cenerall#! here! all the required
do$uments
for taking
investment
have to prepare b# the $lient
himself.
&rade i$ense photo$op# 0for proprietorship2 Abridged pro forma in$ome statement Attested $op# of partnership deed 0for partnership business2 Page | 0
Prior three 0'12 #ears> /oint Sto$k ?ompan#2
audited balan$e sheet 0for
Prior three 0'12 #ears> business transa$tion statement for the Musharaka Mudaraba investment Abridged proof in$ome statement for the the Musharaka Mudaraba investment Attested $op# of the Memorandum 2 % Arti$les Asso$iation 0A
0M
Attested $op# of the &a4 Identifi$ation @umber 0&I@2 in$luding final assessment Detailed summar# of the sundr# debtors and $reditors 0in$luding both time % s$hedule2 Summar# of the personal movable % immovable assets! and others
-.1).2 Araial Stage At this stage! the bank evaluates the $lient and his her business. It is the most important stage. e$ause! on the basis of this stage! bank usuall# goes for san$tioning the proposed investment limit or proposal. If an#thing goes 3rong here! the bank suddenl# stops to make pa#ment of investment. In order to appraise the $lient! AI
*B(
G
?ompan#>s or $lient>s
G
<3ner>s
G
ist of partners
G
Purpose of investmentfa$ilities
G
Previous banker>s information Details of sister allied $on$erns Allied deposits as on usiness industr# anal#sis Relationship anal#sis Asset- liabilit# position of the $lient as per audited balan$e sheet
Page | 1
=orking $apital assessment Risk grade Parti$ulars of the go do3n for storing mpi Insuran$e $overage Audit observation Se$urit# anal#sis
-.1).) Sa4cti74
Stag
As this stage! the bank offi$iall # approves the investment proposal of the respe$tive $lient. In this $ase $lient re$eives bank>s san$tion letter. Al-Arafah san$tion letter $ontains the follo3ing elementsG
Investment imit in Million
G G
Mode % amount of Investment Purpose of investment
G G
Period of Investment Rate of Return
G
Se$urities7 LK Murabaha Post Investment 0MPI2
ai Murabaha- Pledge of MPI V
?ash L
?ash Coods
Se$urit#
In allo3ing Murabaha investment and amount of $ash se$urit# is generall# reali;ed from the $lient 0amount depends on the nature of goods! $redit3orthiness of the $lient! $ollateral se$urit# obtained et$.2 3hi$h is $onverted to goods se$urit# after pur$hase of pag
e
investment and $lient>s
:4ample- if for a Murabaha investment $ash se$urit# is fi4ed at )8 ank>s investment stands at (8 on the total goods pur$hased. For e4ample! if $ost of total goods pur$hased is &k. *''''' ank>s investment 3ill be tk. (8''' and $lient>s $ash se$urit# 3ill be tk. )8'''.
8.*1.+ Do$umentation Stage At this stage! usuall# the bank anal#ses 3ealthier required do$uments are in order. In the $he$ks the follo3ing some do$uments of
&a4 Pa#ment ?ertifi$ate Sto$k Report &rade i$ense 0Rene3al2 A & ?ertifi$ate iabilit# statement from different parties Re$eivable from different $lients
%iburee4t Stage
sho3ing the e4a$t lo$atio n of ea$h mortga ge proper t# needs to be ph#si$ all# verifie d.
)
-.1). M74it7ri4g Rec7very tage
Islami ank imited bank 3ill $onta$t 3ith the $lient $ontinuall#! for e4ample- bank $an obtain monthl# sto$k report from the $lient in $ase of mi$ro investment. 6ere the bank 3ill keep his e#e on over the investment taker. If needed! bank 3ill ph#si$all# verif# the $lient>s operations. Also if ba$k feels that an#thing is going 3rong then it tries to re$over its investment fund from the $lient.
AlAratah
?h apt er B
FI @ DI @ C S #7ic
B.* Findings B.) Problems B.1 S=<& Anal#sis of
.1 Fi46i4g is $ommitted to provide banking servi$es that is purel# based on Islami$ Sharia transparent and effi$ient in this $ompetitive environment. Deposit % Investment Management related finding for the #ear )'*1 and )'*) are given belo37
Particular
& o t a l D e p o s i t s &otal Invest ment Invest ment Depo sit Ratio
0 &
*+ *! (' +! B+ '! B) + *) *! ) ! 8! +1 8 .B ' ).
(
.' ). )B
Amou nt of ?lassi fied Invest ment P r o v i s i o n
1 *
k e p t
I n v e s t m e n t
In$ome from Investment in Shares B'(!))8!'B' (()!)*!)
=e $an see that deposit is the main part of the AI fund. So 3e $an sa# that deposit is the
* ( ' B ! 1 ) ! ' ' '
heart of AI . Investment of the bank in$reased 3ith the in$rease of deposit. total deposit amount is *'*!8B(!'18!*81.
abilit# to $over 3ithdra3als made b# its $ustomers. If the ratio is too high! it means that banks might not have enough liquidit# to $over an# unforeseen fund requirementsH if the ratio is too lo3! banks ma# not be earning as mu$h as the# $ould be. AI> s is 8.'. =hi$h is good for the bank. An# bank investment that is in danger of default is $alled $lassified
investment. ?lassified investments have unpaid interest and prin$ipal outstanding! and it is un$lear 3hether the bank 3ill be able to re$oup the investment pro$eeds from the borro3er. anks usuall# $ategori;e su$h investments as adversel# $lassified assets
$lassified investment $ondition is better in )'*). In )'*1 the $lassified investment ratio is ).( 3hi$h is higher than )'*)>s is performan$e AI>s
measure used to evaluate the effi$ien$#
of an
investment.
.2 Pr7ble Due to la$k of A& M ooth fa$ilities! deposits.
the bank is not able to attra$t more ne3
does not provide $redit $ard fa$ilities to its $ustomers. 1. AI does not provide internet banking te$hnologi$all# advan$ed people do open a$$ount in the bank.
fa$ilit#.
&herefore
+. SMS banking fa$ilit# is not available 3hi$h is essential no3ada#s for depositors. &he# have to $ome to the bank to kno3 their a$$ount balan$e. 8. anking soft3are is not up-to-date. &here are lot of soft3are bugs! therefore often bank offi$ials fa$e interruption in their 3ork. &he# also use =indo3s WP as the operating s#stem 3hi$h is out of date. B. anking servi$e is not fast enough.
&he# do not have an# dedi$ated helpline for $ustomers. *). Investment pro$essing is length# therefore people be$ome demotivated. Page |
forms are not managed properl#.
is also ba$kdated! not
*(. Most of the poli$ies are ba$kdated.
.) S($# A4alyi 78 A!3 :ver# organi;ation
is $omposed of some internal strengths and 3eaknesses and also has some e4ternal opportunities and threats in its 3hole life $#$le.
B.1.* Stre4gth AI provides its $ustomers e4$ellent and $onsistent qualit# in ever# servi$e. AI is a finan$iall# sound $ompan#. AI utili;es state of the art te$hnolog# $onsistent qualit# and operation.
to ensure
AI provides its 3ork for$e an e4$ellent pla$e to 3ork.
AI alread# a$hieved a good3ill among the $lients. AI has a resear$h and training division. AI has strong deposit and investment management $apabilities.
B.1.) =eaknesses AI
:mplo#ees are not motivated in some areas.
B.1.1 G :mergen$e of online banking 3ill open more s$ope for AI. G AI $an introdu$e more innovative and modern $ustomer servi$e. G Man# bran$hes $an be opened in lo$al remote area as its high demand. G AI $an re$ruit e4perien$ed! effi$ient and kno3ledgeable offi$ers offers good 3orking environment.
B.1.+ &hreats G &he 3orld3ide trend of mergers and a$quisition in finan$ial institutions is $ausing problems. G Frequen$# devaluation foreign e4$hange flu$tuation
taka and rate is
$ausing problem. G ots of ne3 banks are $oming in the s$enario 3ith ne3 servi$e. G o$al $ompetitors $an $apture huge market share b# offering similar produ$ts.
?hapter ( R:?
/.1 Rec7e46ati74 should $hange the outlook of the bran$h to attra$t premium $ustomers. AI should provide an effe$tive training program for the 9unior level offi$ers. &he servi$e in Sonargaon /anapath Road ran$h has real good prospe$t! thus the bank should 3ork a$tivel# so that it $an attra$t more $lients. &he bran$h should give more emphasis on proper re$ord keeping. &he# should give more attention in in$reasing their deposits in different a$$ounts.
Investment in$ome 3ere more than double b# last + #ears! it $onve# ver# good sign. &he# should tr# to retaining their position.
and arisal Region but more $on$entration at Dhaka and ?hittagong! the# should give $on$entration at ,hulna and arisal Region also.
ank should offer more fa$ilities to the $onsumers su$h as $redit $ard! master $ard! A& M Ma$hine et$. anking is servi$e-oriented marketing. Its business profit depends on its servi$e qualit#. &hat is 3h# the authorit# al3a#s should be a3are about their servi$e qualit#. :mplo#ees must give individual attention to the $onsumer. For that! the# $an re$ruit more emplo#ees. AI should invest in profitable se$tor. Among the different se$tor AI should invest highl# in Industr# and ?ommer$e se$tor for high profit.
/.2 C74clui74
has to follo3 the rules of angladesh bank despite the fa$t that these rules sometime restri$t the foreign business to some e4tent. During m# internship in this bran$h I have found the investment department to be ver# effi$ientH therefore this department pla#s a ma9or role in the overall profitabilit# of the bran$h and to the ank as a 3hole. Al-Arafah Islami ank td is one of the most potential islami banks in the islami banking se$tor. It has a large portfolio 3ith huge assets to meet up its liabilities and the management of this bank is equipped 3ith the e4pert bankers and managers in all level of management. &he ank>s drive to3ards market leadership as 3ell as qualit# in $hoosing l business il $ontinue in the $oming #ears although $ompetition is intensified 3ith
the opening of more finan$ial institutions. &he ank is optimisti$ that the volume of l business il in$rease in future through pragmati$ and market friendl# poli$ies. &he ank shall $ontinue to e4plore ne3 fields of investment and take steps to open ne3 ran$hes for anking. &he bank should endeavor to adopt $ustomer-oriented poli$ies and introdu$e ne3 te$hniques 3ill to profit in$rease $onfiden$e the
that help earn and greater of V
e4isting prospe$tive $ustomers.
7 Arafah Islami ank imited. AI is a bank that offers the best islami banking servi$es B to its $ustomer and also a fast gro3ing bank. # 3orking in Sonargaon /anapath Road B ran$h!
the
learned be enough 3ith v.
kno3ledge 3ould helpful to sustain the real
organi;ational environment.
Re8ere4ce Reill# and ,eith ?. ro3n! Investment (th :dition. Page | /0
Annual Report )'*1 12 AI Annual Report )'*) +2 AI Probaho 0<$toberDe$ember )'*12 82 B2 (2 en.3ikipedia.org 3ikiIslami$bank ing 2
*it 78 Acr74y Islami ank imited
Profit-oss-Sharing a$helor of usiness Administration Authorised Dealer M Mi$ro! Small and Medium :nterprises A C M
Annual Ceneral Meeting
: :4traordina r# Ceneral Meeting angladesh Covernment Islami$ Investment ond ? R M
?ore Risk Manageme nt
A Automated &eller Ma$hine ?orporate So$ial Responsibilit# ? ?entral Sharia oard for Islami$ anks of angladesh
etter of ?redit Pa#
My !4ter4hi Eerie4ce
deals 3ith the three parts of a$tivities. &hese are7 general banking! investment and foreign e4$hange. As I 3as an intern! m# tasks 3ere mostl# related to general banking. I got to learn a lot of things about bran$h banking during this time. I got familiar 3ith the 3ork environment! I got to kno3 ho3 all the bran$hes are $entrali;ed and about the pro$ess flo3. I mainl# had to report to the ran$h Manager! but m# supervisor 3as the Senior Prin$ipal
K Eerie4ce Regar6i4g Per74al !r7vee4t K 1. #ie Ma4agee4t
&ime management is the great virtue for ea$h % ever# person. As a private universit# student! I spent onl# + to 8 hours in the universit# $ampus 3ith gossiping! taking tea % sna$ks. ut in the professional life like bank! ea$h % ever# emplo#ee rea$h in the offi$e not more than .1' am and go out
from offi$e not less than Bpm due to heav# 3orking pressure. So! I also maintained m# offi$e time. &he# do their dail# task in dail# basis. I also helped them to easier.
make their task
2. %irect C7u4icati74 ith Cut7er
&oda#>s 3orld is so $hallenging. ?ustomer has more po3er due to 3ide range of s3it$hing option. I 3as little nervous in m# first fe3 da#s to $ommuni$ate 3ith $ustomer. ut in later! I 3as en9o#ing serving the $ustomer.
1. F7ral %re C76e I al3a#s 3ear 9eans! t-shirt! $asual short shirt! sni$ker. I hardl# 3ear formal pants! shirt and shoe. In the 1 months internship period I maintained the dress $ode regularl# and I>m habituated 3ith this no3.
+. "eat
I had long hair 3ith little beard before starting m# internshi p program. After starting internshi p! make m# hair short! shaving in time! $utting nail! and polish shoe in time. I Pa s e have 3earied ironed and $lean $loth regularl#. First fe3 da#s! I feel boring but no3 I am habituate d of it.
-. #ea7 r5
&heoreti$ all# I read 3hat is team and team3or k but pra$ti$all # I did not have e4perien $e about it. In the professio nal life there>s e4ist team like anglade sh $ri$ket team. :a$h % ever# team member has some responsib ilities and target to fil l $losel# and
helped them to make their task easier.
K Practi cal (7r5i 4g Eeri e4ce K
G I filled different t#pes of a$$ount form for the $ustomer. &here is different t#pe of ank a$$ount su$h asG ?urrent A$$ount7 I filled up the $urrent a$$ount form
for the $lients. I also $he$ked the a$$ount form and $he$ked the do$umen ts for opening the a$$ount. G Savings A$$ount7 I filled up the savings a$$ount form 3hi$h is kno3n as Mudarab a Savings A$$ount 0MSD2 for the $lients. I also $he$ked the a$$ount form and $he$k the do$umen ts of
opening the A$$ount. G &erm Deposit7 6ere I filled up the DPS form 3hi$h is kno3n as I&D
G Input the $heque book number in register book G Issued $heque random digit number G Mat$hed the initial of $ustomer at the time of giving $heque book G =rote in3ard and out3ard register book
G Filled up the investment appli$ation form for the $ustomer G ?he$ked the ne$essar# do$ument and listed them up G Filled up the dill papers for the $lients G Prepared debit and $redit vou$her for the pa#ment and ad9ustment G Filled up the ?I
<6= Cah %earte4t #a5
G Re$eived $ash from the $ustomer and pa# in $ounter G ?ounted $ash 3hi$h 3as given b# the $lients of the bank G Re$eived $heque from the $lient and gave them $ash.
Assisted
3ith
ne$essar# information G Putted various t#pes of seals for $learing G "pdated the re$ord book of $learing! FDR and $heque books G
Data entr# task b# $omputer
G Filled up other ne$essar# forms for the bank
