CHAPTER-1

INTRODUCTION

1.1 Introduction:
The student undertakes Masters of Business Administration (MBA) degree at BUBT shall have to go
for intership to an organization for 12 weeks togather practical knowledge and experience.Internship
is an arrangement by which a student works in an organization for a limited period in
time.Achievement of high economic growth is the basic principles of present economic policy. In
achieving the objectives, the banking sector plays an important role. The banking sectors channel
resources through deposit mobilization and providing credit for different business venture. The
successful running of a bank business depends upon how effectively the credit management recovered
the funds.

1.2 Significance of the Study:

This report based on an internship program. SJIBL arranges internship program to gather practical
knowledge about banking activities followed by SJIBL for university students as universities
conducted with different organization after the completion of theoretical courses of program of
Masters of Business Administration (MBA).Education becomes more effective when there is a
combination of theory and practical knowledge. Theoretical knowledge achieved perfection with the
implication of practical knowledge. Professional experience is very important to be established. In
this situation I got a bit practical experience by analyzing the overall banking activities of Shahjalal
Islami Bank Limited.

1.3 Scope of the Report:

As I was working in the Shahjalal Islami Bank Kawranbazar Branch, I got the opportunity to learn
different part of banking system. The supervisor divided the whole banking system in five parts; as a
result I got the opportunity to work in all the five divisions. This areGeneral Banking Division.
Investment Division.
Foreign Exchange Division.
HRD Division.
Information Technology Division
Shahjalal Islami Bank has discovered a new horizon in the field of banking area which offers different
General Banking, Investments, foreign exchange, Information Technology and HRD banking system.

So I have decided to study on the topic General Banking Activities of SJIBL because the
internship program of the University is an integral part of the BBA program.
The report is based on my practical work which I have learned, experienced and done in Shahjalal
Islami Bank Ltd. This also provides an opportunity to the student to minimize the gap between
theoretical and practical knowledge. Finally this report helps me to know the atmosphere and
environment of an organization. Thus report is very rational and significant.

1.4 Objective of the Report:

The report is prepared for the purpose of acquainting General Banking activities of SJIBL. Therefore
the objectives of the reports are following:
Broad objective
Specific objective

1.4.1 Broad Objectives:

The major objective of this report is to have an overview of general banking activities of SJIBL.

1.4.2 Specific Objectives:

To know the general banking operations of Shahjalal Islami Bank Ltd.
To be familiarized with the different components and instruments used in general
banking.
To evaluate the performance of general banking activities of SJIBL.
To find problem and suggest remedial measurement for the improvement of the
general banking activities.

1.5 Methodology of the Report:

This report is basically prepared on the basis of my experiences with SJIBL. The data have been used
include both as Primary and Secondary sources.

Type of Research:

This is an Exploratory Research which briefly shows the general banking & also analyzes the
General Banking Activities of Shahjalal Islami Bank Limited.

1.5.1 Source of Data Collection:

The basic source of data collection based on both primary and secondary which used in the
preparation of this report is obtained when I went to SJIBL, Mirpur branch as an internee.

1.5.1.1 Primary Sources:

Direct observation of daily operation.
Discussion with high officials of the Branch.
Direct involvement of General Banking process in SJIBL
Questionnaire survey

1.5.1.2 Secondary Sources:

Different books and periodicals related to the banking sector.
Banks annual report.
Newspaper.
Bangladesh Bank report.
Internet.

Data collection procedure:

Target source: The target sources of informations have been the customers of SJIBL, Mirpur
branch.
Population: The population has been the customers of SJIBL.
Sample size:

Population
Sample unit
Shahjalal Islami Bank Client of general banking department

Sample size
30

Limited.

1.6 Limitation of the Report:

There are some limitations in my study. I faced some problems during the study which I am
mentioning below:
Time bindings:
Learning is the vital part of experience. Experience comes through learning but learning takes
time .So, without adequate time is required learning is not completed. Three month is sufficient to
learn but in banking, system is more complex that require more time to learn completely.
Inadequate data:
Some desired information could not be collected due to confidentiality of business.
Limitation of scope:
In banking system, data is more important to evaluate the performance of the certain bank
but data is managed strictly .So, they dont want to give more valuable data otherwise in principal
branchs employees are busy always time .So, they dont want to share.
Secrecy problem:
Every organization has their own secrecy specially for banking sector it is very risky to
disclose the secret information to others.
Lack of co-operation:
Few officers sometimes disturbed as they were busy in their job, sometime they did not want to
supervise me out of their official works.

CHAPTER-2
Organizational overview

2.0 Company profile:

2.1 Background:
The Shahjalal Islami Bank Limited was incorporated as a public limited company as on 1 st day of
April 2001 under the Companies Act. 1994. The Bank started its commercial operation on May 10,
2001. The Bank has made a significant progress within a very short period of its existence and
occupied an enviable position among its competitors after achieving remarkable success in all areas
of business operation. The authorized capital of the Bank is Tk. 4,000 million and Paid up capital of
the Bank stood at Tk. 2,246 million as on 31 December 2008.

2.2 Vision of SJIBL:

To be the unique modern Islamic Bank in Bangladesh and to make significant contribution to the
national economy and enhance customers trust & wealth, quality investment, employees value and
rapid growth in shareholders equity.

2.3 Mission of SJIBL:

Shahjalal Islami Bank Ltd. aims to become one of the leading Banks in Bangladesh by prudence, flair
and quality of operations in their banking sector. The bank has some mission to achieve the
organizational goals. Some of them are as follows as:
To provide quality service to customers.
To set high standard of integrity.
To make quality investment.
To ensure sustainable growth in business.
To ensure maximization of shareholders wealth.
To extend our customers innovative services acquiring state-of-the-art technology blended
with Islamic principal.
To ensure human resource development to meet challenges of the time.

2.4 Goals of SJIBL:

Shahjalal Islami Bank Ltd. will be the absolute market leader in the number of loans given to small
and medium sized enterprises through out Bangladesh. It will be a world-class organization in terms
of service quality and establishing relationships that help its customers to develop and grow
successfully. It will be the Bank of choice both for its employees and its customers, the model bank in
this part of the world.

2.5 Strategies of SJIBL:

To strive for customers best satisfaction.
To manage and operate the Bank in the most efficient manner.
To identify customers needs and monitor their perception towards meeting those
requirements.
To review and update policies, procedures and practices to enhance the ability to extend
better service to customers.
To train and develop all employees and provide them adequate resources so that customers'
needs are reasonably addressed.
To promote organizational effectiveness by openly communicating company plans,
policies, practices and procedures to employees in a timely fashion.
To cultivate a congenial working environment.
To diversify portfolio both in the retail and wholesale markets To increase direct contact
with customers in order to cultivate a closer relationship between the bank and its
customers.

2.6 Ownership Pattern:

Currently SJIBL has 19 sponsor shareholders. Out of 19, only two are the representatives from two
institutional shareholders. Among the shareholders there are 12 Board members holdings 66.48% of
total outstanding shares. Alhaj Md. Faruque is the individual shareholder holding highest 8.52% of
total outstanding shares. There are nine shareholders who are holding more then 5% of total
outstanding shares. The above shareholding percentages will be diluted to great extent with the
participation of general public through the ensuring IPO.

2.7. SJIBLs Market Share:

SJIBLs Market share of deposits and investments are small. The banking industry of Bangladesh had
deposits of Tk. 1,440.16 billion (excluding inter- bank and Government deposits) and loans and
advances of Tk. 1,319.60 billion on 2007, shared among 49 banks consisting of 4 NCBs, 5
specialized banks, 10 foreign banks, 24 private commercial banks and 6 Islamic banks. SJIBLs
customers deposits stood at Tk. 10.81 bill and Tk. 6.92 billion in year 2006 and year 2005
respectively. The investments (loans and advances) of SJIBL stood at Tk. 10.59 billion and Tk. 7.15
billion respectively during the same period. SJIBL held only 0.75%of total market deposits and
0.18% of total market investment (loans and advances) on 31 st December 2005. The growth rate of
SJIBL is much higher then that of the overall market growth mainly due to small base effect. The
SJIBL customer deposits were increased by 56.33% compared to industry growth of 16.56%.

2.8 Organ gram of SJIBL:

Board of Directors

Shariah Council

Executive Committee
of the Board

Policy Committee of the board

Managing Director

VP/SVP
Board of Secretariat

Senior Executive Vice President (Adm)

Senior Executive Vice President (Op.)

Executive Vice President (Adm)

Executive Vice President (Op.)

Investment Committee

SVP/VP
Investment Division

SVP/VP

VP/SAP

SAVP/AP

VP/SAVP

SAVP/

VP/SAVP

Human

Training,

Public

Common

AVP

Financial

Resources

Research &

Relations

Services

Computer

Division

Development

Division

Division

10

and IT
Division

VP/SAVP
Intl Trade,
Finance

Administration
Division

and
Treasury
Division

2.9 Management Hierarchy of SJIBL:

Organizational structure of Shahjalal Islami Bank Limited:
Chairman
Board of Directors

Sponsors

Managing Director
Deputy Managing Director
GSD, CAD, A&I, GB, D&M

Deputy Managing Director

ID, IT, CREDIT, R&P
Executive Vice President/
Company Secretary

Senior Vice President

Senior Vice President

Senior Vice President

Vice President
Senior Asst. Vice
President

Figure:2-Management
Hierarchy of SJIBL

Asst. Vice President

First Asst Vice President

Executive Officer
Senior Officer
Trainee Senior Officer
Officer

11 Officer
Trainee

Abbreviations:
GSD General Service Division
CAD Central Account Division
ASI Audit and Inspect
CB Central Bank
D&M Developing and
Marketing
ID
International Division
R&P Research & Planning

2.10 Financial Highlights of the Bank:

Equity of the Bank:
Figures in Million Taka
SL No:
01
02
03
04
05

Particulars
Paid-up Capital
Statutory Capital
Retained Earnings
General Provision
Exchange Equalization
Total

Year 2009
2,740.96
1142.59
753.33
463.48
0.19
5,100.81

Source: Annual Report 2009

Deposit of the Bank:
Percentage

SL No:

Name of the Deposits

Taka in Million

01

Al-Wadia Current Deposit

3966.54

Deposit
7.82%

02

Mudaraba Savings Deposit

3072.79

6.06%

03

Mudaraba Short Notice Deposit

1085.21

2.14%

04

Mudaraba Term Deposit

27,578.74

54.39%

05

Mudaraba Schemes Deposit

11,426.65

22.54%

06

Other Deposits

3,572.49

7.05%

Total

50702.42

100%

Source: Annual Report 2009

Investment of the Bank:

12

of

tal

Percentage

SL No:

Modes of Investment

Taka in Million

01

Murabaha

8,433.51

20.76%

02

Bi-Muajjal

14144.55

34.82%

03

Hire-purchase & Ijara

7,413.54

18.25%

04

Investment against L/C

206.33

0.51%

05

Bill purchased/Discounted

5,925.51

14.59%

06

Investment against Scheme deposits 716.61

1.76%

07

Quard

454.86

1.12%

08

Others
Total

3,327.92

8.19%

40622.83

100%

Source: Annual Report 2009

Figure:-Investment portfolio of 2009

Foreign Exchange Business:

13

investment

of

oal

SL No:
01
02
03

Particulars
Import
Export
Foreign Remittance
Total

Amount in Million Taka

Percentage of total
25,490.10
56.81%
15,084.00
33.62%
4,294.50
9.57%
44,868.60
100.00%
Source: Annual Report 2009

Foreign Exchange Business

Import
Export
Foreign
Remittance

Figure:-Foreign Exchange Business

2.11 SJIBL AT A GLANCE

Principal activity- Commercial banking

Incorporated on- April 01, 2001

Started operation on- May 10, 2001

Number of Branches-52

Mirpur Branch opened on- November 01, 2007

Managing Director- Mr. Muhammad Ali

Board Chairman- Alhaj Sajjatuz Jumma

Financial Information of SJIBL

Authorized Capital-2000 million

Paid up capital- Tk. 1872 million

Equity- Tk. 3,041 million

Investment- Tk. 20,617 million

Total Deposits 22,618 million

14

CHAPTER-3
Theoretical Background

3.0. Theoretical Background:

15

Bank:
Banks are the financial depository institution which are allowed or licensed by the central banks
to accept deposit for doing lending business
Banker:
Banker is one who in the ordinary course of his business honors cheques drawn upon him by
persons from and for whom he received money or currents accounts
Banking:
Generally all the activities of a bank is called banking. In a broader sense, banking is the
summation of financial service like collection of deposits from people, collect cheques, grants
loan, transfer money, invest fund, safeguards money for its customers etc
Central bank:
.The central bank is the organ of government that under takes the major financial operations of
the government and by its conduct of these operations and by other means influences the behavior
of financial institutions so as to support the economic policy of the government."
Commercial Bank:
Commercial bank is one which collects small savings from the public by offering them affixed
rate of interest and advancing the loan able funds out of the deposited money to enterprising
clients charging relatively higher rate of interest.

Bank rate:
A bank rate is the interest rate that is charged by a countrys central or federal bank on loans and
advances to control money supply in the economy and the banking sector. This is typically done
on a quarterly basis to control inflation and stabilize the countrys exchange rates. A fluctuation in
bank rates triggers a ripple-effect as it impacts every sphere of a countrys economy. For instance,
the prices in stock markets tend to react to interest rate changes. A change in bank rates affects
customers as it influences prime interest rates for personal loans.

3.1. General Banking:

16

General Banking is the heart of Banking. Here money collection procedure occurs. Other services
like cheque encashment, account transfer, account closing, bills and remittance are provided here.
So general banking section is the life blood in banking service. The activities perform through
some procedures such as Dispatch ( inward and outward), Deposit, A/C Opening and closing,
Transfer, Cheque book issue, local remittance ( payment order and DD, TT ),Foreign remittance,
Collections- transfer delivery, Cash, Vault etc.

Services Offered by General Banking Division:

As General Banking Division is a huge Sector so there are many things to do which are given
below:

3.1.1. Dispatch Department:

Dispatch is the primary department of any organization. For banking sector it is very important
department because through these division bank keep the record of all inward and outward
documents.
Inward documents means the letters, papers, circulars online vouchers and so on are sending to
bank head office, other branches, different organization or re4ceiving by the bank. On the other
hand outward documents mean bank send important papers and others to different places.
To keep the record of all inward and outward information bank maintain two register. Those two
registers are known as:

3.1.1.1. Inward Register:

Inward register is a binding register book containing date, serial number, content or particulars,
received from whom and where, marked to, remarks and initial signature. In inward register all
the incoming and receiving documents are received and posted according to date and subject and
then remarked it from operation manager to do the job to different departments.

3.1.1.2. Outward Register:

17

Outward register is almost like inward register containing date, serial number, references,
address or destination, particulars and initial signature. In inward register SJIBL registered
different documents which are sending to different branches of SJIBL both inside and outside of
Dhaka or different organizations both inside and outside of Dhaka and Bangladesh by courier.

3.2. Account Opening Department:

Shahjalal Islami Bank Limited offers three types of account to depositors and withdraws cash for
various purposes. The names of the accounts are:

Mudaraba Savings Deposit (MSD):

Mudaraba Savings Deposit is the most common form of account opening of any bank and
so to SJIBL. An account holder operates his or her account through deposit and
withdrawals cash. Generally savings account operates by individual or sole
proprietorship. Modest profit rate is providing by the bank.

Al-Wadiah Current Deposit ( ACD):

Maximum businessman or company operates Al- Wadiah Current Deposit because they need
heavy transaction which is possible in current account because of its liquidity. No profit rate is
provided by the bank.

Mudaraba Short Notice Deposit (SND) :

Mudaraba Short Notice Deposit almost same to current deposit but a very small profit rate
provided by the bank.

18

 Terms and Conditions for Account Opening

Minimum Balance:

Minimum balance to be maintained in Al-Wadiah Current Deposit / Short Notice Deposit

Account is TK. 5,000 and in Mudaraba Savings Deposit Account is TK. 2,000. This requirement
may at the banks direction be changed from time to time. If the balance falls below the requisite
minimum balance at any point of time the bank may at its direction impose an incidental charge
on a half yearly basis.

Profit Payment:

Deposits of Al-Wadiah Current Deposit Account are accepted as per Al-Wadiah Principals.
Clients will not be entitled to receive any profit against the Al-Wadiah Current Deposit Account.
Deposits of Mudaraba Savings Deposit Account and Short Notice Deposit Account are received
as per Mudaraba principals. Clients are entitled to receive profit on a half yearly basis which is
6% and 5.5% respectively.

Criteria for Distribution of Profit:

The Mudaraba Savings Deposit Account holder can deposit money at any time during a month.
The lowest balance of the account with in first six days of the month will be considered as the
deposit of the month. Maximum 4-times withdraws in a month is permissible for distribution or
calculation of profit.
For Mudaraba Short Notice Deposit Account profit will be calculated on days credit balance on
the account. The account holder needs to maintain the requisite minimum balance through out the
year to receive the profit.

Service Charges:

Service charge for maintaining the account with the bank will be levied as determined by the
bank from time to time apart from governments usual excise duty and other charges.MSD100ACD-175 Half Yearly

Statements:

19

The Account holder of Mudaraba Savings Deposit Account will usually receive the statement of
his or her or their account by courier on a half yearly basis and the account holder of Al-Wadiah
Current Deposit Account and Mudaraba Short Notice Deposit Account will usually receive the
statement the quarterly basis. Besides these account holder may receive the statement by hand
once in every month free of cost.

Communication/ Instruction:

All Communications or Instructions to the bank regarding stop payment, issuance of cheque
book, bank solvency certificate, statement, online transactions, balance inquiry should be in
writing, bank may at the customers request, hand over the cheque book, in a closed envelope to
any person authorized by the account holder. Any stop payment instruction received after
payment of the cheque or instrument is invalid.

Close of the Account:

The customer may at any time close the account with proper clarification after payment of the
requisite fee as determined by the bank from time to time and on surrender of unutilized cheque
leaves.

Age of having an account:

Minor (a person below 18 years old) can not be an account holder but some other person such as
guardian could operate the account on behalf of the minor.

Number of account:

One person can not open more than one account in same name.
Papers/Documents Required for Opening Account
a) For Individual/Joint Account:
b) For Partnership Account:
c) For Limited Company:
d) For Club/Societies:
e) Club/Association Account

For an individual / Joint Account:

20

a) Copy of the passport, if available or employers certificate or commissioner

certificate or chairmens certificate or letter of introduction by a person acceptable to
the bank.
b) TIN Certificate, if applicable.
c) Two recent passport size photographs duly attested by the introducer.
d) One copy photograph of the no nominee.
Cautions:

In Account opening form Name, Present & Permanent address, Date of birth, Age of account
holder, Fathers Name, Mothers Name, Husbands Name in case of married lady must be
filled up properly in Account opening form.

The Introducer of the proposed new account must be maintained an account with the branch
for at least one year and the account must have good transactions over the last year.

The details of the identity, address and business of the new account holder must be verified
and the branch In Charge should be satisfied about the person/firm/companys credibility.

A letter of thanks shall be sent to the introducer and to the account holder on

Banks

Standard Form.

For sole proprietorship Account:

a) Copy of Trade License.
b) Two recent passport size photographs of the proprietor/ signatory duly attested by the
introducer.
c) Copy of the passport of the proprietor/ signatory, if available or commissioners
certificate or chairmans certificate or letter of introduction by a person acceptable to
the bank.
d) TIN Certificate.
e) One copy photograph of nominee.
Cautions: Same as Joint/Individual Account.
For Partnership Account:

21

a) Copy of the Partnership Deed of the firm.

b) List of Partners with their address and phone number.
c) Copy of Trade License.
d) d) Extract of Resolution of the partners of the firms for opening the account and
authorization for its operation duly certified by the Managing partner of the firm.
e) For registered partnership, Certificate of registration of the firm along with duly certified
copy of the Partnership deed.
f) Two recent passport size photographs of each partner/ signatory, duly attested by the
introducer.
g) Copy of passport of each partner / signatory, if available or commissioners certificate or
chairmans certificate or letter of introduction by a person acceptable to the bank.
h) TIN Certificate.
i)

one copy photograph of nominee.

Cautions: Same as Joint/Individual Account.

For private and public limited companys Account:

a) Certified true copy of Memorandum and Article of Association of the company.
b) Certified true copy of Certificate of Incorporation of the company.
c) Certified true copy of Certificate of Commencement of Business of the company, in case
of public limited company.
d) Latest list of directors with address and phone number along with form XII.
e) Extract of duly adopted Resolutions of the Board of Directors of the company for
opening the account and authorization for its operation duly certified by the chairman /
Managing Director of the Company.
f) Copy of Trade License.
g) Two recent passport size photographs of each signatory duly attested by the introducer.
Cautions: Same as Joint/Individual Account.
For Club/Association Account:
a) Introduction of the account

22

b) Two photographs of the signatories duly attested by the introducer

c) Board resolution of opening Account duly certified by President
d) List of Existing Managing Committee
e) Registration (If any)
f) Permission letter from Bureau of N.G.O
Cautions: Same as Joint/Individual Account.

3.3. Remittance Department

By the word Remittance we understand transfer from one place tom another through banking
channel. When such transfer is made within the country it is called local inland remittance. Local
remittance is one of the most important as well crucial parts of general banking. When such
transfer is made outside the country it is called foreign remittance.

3.3.1. Parties of Remittance:

In remitting fund physical transfer of money is not made only instruction is passed on from the
issuing branch to the drawer branch for paying a certain sum of money to the payee specified in
the instrument. There are four parties involved in this transaction which are:

3.3.1.1. Remitter/ Purchaser:

The remitter gives cash or cheque to the issuing branch who issues D.D. and T.T. as desired by
him.

3.3.1.2. Drawer / Issuing Branch:

The issuing branch receives money from the remitter and sends order to drawee branch to pay the
amount to the payee.

3.3.1.3. Drawee / paying branch:

It has received order to pay from the drawer or issuing branch.

3.3.1.4. Payee:
The person issues the amount in favor of remitter is known as payee
Explanation of Remittance:

23

Purchaser/ Remitter
Pays to

Drawer Branch
Issues

Order to

Drawee Branch
Pays to

Amount to

Payee

Figure: 3: Explanation of remittance

3.3.2. Types of remittance:

3.3.2.1 Local Remittance:
Local Remittance Department Cash remitting from one place to another is risky. So, Banks

funds

on behalf of the customer(s) to save them from any awkward happening through network of their
branches. There are three modes of remitting funds. These are
Demand Draft
Telegraphic Transfer (TT)
Pay Order (PO)

3.3.2.2 Foreign Remittance:

24

Foreign Remittance Department: SJIBL is very happy to announce to have joined hands with western
union system and kushiara and introduce swift service to serve expertise to send money back home
quickly from anywhere in the world. Money can also be sent quickly through western union, kushiara
and swift service from Bangladesh to other part of the world

3.3.2.1 Local Remittance:

Demand Draft (D.D.):
The Demand Draft is written order by one branch of a bank upon another branch of the same
bank to pay certain sum of money to or to the order of a specified person.
A Draft is always an order and never a bearer instrument. It is a negotiable instrument like a
cheque i.e. it can be endorsed, collected, and delivered to the endorsee. D.D. may be issued to any
person and it can also be issued in favor of a company, firm or local authority on written request
duly signed by the purchaser.

Issue of a D.D.

The Purchaser is asked to complete the prescribed application from and credit voucher for general
account.

Amount of commissions:

If against cash, the application is given to the customer to deposit the cash with the cashier.
If against cheque (With or without commissions) then:

Amount of Commissions of Demand Draft

Party a/c(amount + commission)
General a/c(Drawee branch)

25

Dr.
Cr.

Income a/c commission on D.D.

Cr.

Source: From interview with the charge of local remittance department of Shahjalal Islami
Bank Limited.

Telegraphic Transfer (T.T.):

It is an instruction duly tested sent by telex/fax/telegram/telephone etc from the issuing branch to
the drawee branch for paying a certain sum of money to a specified person. The payment
instruction is sent by telex/fax/telegram/telephone and funds are paid to the beneficiary through
his account maintained with the drawee branch or through a pay order if no account is maintained
with branch. No charge is required for T.T.

Issue of T.T.

Written application of the purchaser in prescribed form which is treated as credit voucher for
general a/c of the bank.
Issue of Telegraphic Transfer
Cash or cheque
General a/c (Paying branch)
Income a/c commission on T. T.
Telegram charges

Dr.
Cr.
Cr.
Cr.

Pay Order (PO):

For issuing a pay order the client is to submit an application form. This application form should
be properly filled up and signed. The procedures of the issuing pay order are similar to the
Telegraphic Transfer (T.T.).

26

For issuing pay order SJIBL charges commissions on the following rate :
Ranges
Below 1 Lac
1 Lac- Below 5 Lac
5 Lac- Above

Commission
50
100
150

Vat
8
15
23

Total
58
115
173

Source: From interview the charge of local remittance department of Shahjalal Islami Bank
Limited.

3.3.2.2 Foreign Remittance:

Western Union Service (WU):

Western Union is one of the first and easy ways to receive money from abroad.
Western Union is the Process where the senders send the money from any where in the world.

Procedures of WU:

In these processes the receivers receive the money easily by doing some legal procedures. These
procedures are:
Firstly, the receivers have to fill up a form where they should include their name, address, and
phone number, amount of money, senders name, and the sending country.
Secondly, in this process there have a pin code which should be 10 digits. The receivers write the
pin code in the form.
Finally the receivers receive a debit voucher and then they give it to the cash counter to receive
the money.

Kushiarer Service:

Kushiarer service is one of the fastest ways to receive money. In these process receivers receive
money which was given by the sender any where in the world.

27

Procedures of kushiarer service:

In Kushiarer service the receivers have to go through some steps, which are:
Firstly, they should have to fill up a form, where they include senders name, amount of the
money, and the sending country.
Secondly, they should include the beneficiary name, identification, pin code, senders name and
the receivers address.
Finally the receivers receive a debit voucher and then they give it to the cash counter to receive
the money.

3.4. CASH DEPARTMENT:

3.4.1. Receiving Cash:
Maintaining a receipt register to record all the cash receive of the day which is known as tellers
sheet. In tellers sheet there are five columns which are serial number, date, account number,
amount and initial signature.

3.4.2. Cash Payment:

Client has to give cheque to cash officer to get his money with signature on cheque and signature
must be match with the specimen signature. Cash officer have to check the signature and if
correct then he put a/c number into the computer and check the balance the client have in his
account. Cash officer should provide issue note i.e. torn and damage notes. Payment can be
through transfer which is no physical cash but transfer account to account.

There are few things that shall be scrutinized and checked before making payments.

Name of the drawer.

Account number.

Specimen signature.

The validity of the check and make it sure that it is not post dated or undated.

28

The amount in words and figures are same.

Cash Balance Calculation:

The officer in charge of cash section does the calculation and then Sub-manager or authorized
officer will check the balance and sign in the cash balance book. The balance is maintained in the
balance book. Opening balance of current day is the closing balance of the previous day. Total
receive of the current day is added with the opening balance and total payment is deducted for
calculating the closing balance or cash balance.

3.4.3. Statement of Account:

The account holder of Mudaraba Saving Deposit Account will usually receive the statement on a
half yearly basis and the account holder of Al- Wadiah Current Deposit Account will usually
receive the statement on a quarterly basis. Besides the account holder may receive the statement
by hand once in every month free of cost containing current balance amount in particular.

3.4.4. Account Transfer:

To transfer account from one branch to another branch of SJIBL account holder have to give an
application to manager. Balance would be transfer by IBCA.

3.4.5. Closing Account:

Account holder give an application to the manager mentioning the reason of close and then
application form, account opening form and specimen signature card will be marked as closed.

3.5 Accounts Department:

Accounts Department is called as the nerve Center of the bank. In banking business, transactions
are done every day and these transactions are to be recorded properly and systematically as the
banks deal with depositors money. Improper recording of transactions will lead to the mismatch
in the debit side and in the credit side. To avoid these mishaps, the bank provides a separate
department; whose function is to check the mistakes in passing vouchers or a entries or fraud or
forgery. This department is called as Accounts Department. If any discrepancy arises regarding
any transaction this department report to the concerned department.

29

Beside these, the branch has to prepare some internal statement as well as some statutory
statement, which are to be submitted to the Central Bank and the Head Office. This department
prepares all these statements.
Functions of this department:

Recording the transactions in general and subsidiary ledger.

Recording the transactions in the cashbook.
Preparing the daily position of the branch comprising of deposit and cash.
Preparing the daily Statement of Affairs showing all the assets and liability of the branch

as per General Ledger and Subsidiary Ledger separately.

Making payment of all the expenses of the branch.
Recording inters branch fund transfer and providing accounting treatment in this regard.
Preparing the monthly salary statement for the employees.
Preparing the weekly position for the branch which is sent to Head Office to maintain

Cash Reserve Requirement (C.R.R)

Preparing the monthly position for the branch which is sent to the Head Office to
maintain Statutory Liquidity Requirement (S.L.R)
Make charges for different types of duties.

3.6. Clearing Department:

Clearing should be happen between different banks with in a region. Receiving cheque of
different banks from clients to make cash are submitted in a house belonging Bangladesh Bank is
called clearing house. Clearing section receives cheque of other banks to send the clearing house
through the main branch of SJIBL. This is a very significant sector of general banking sector.
This sector has two vital jobs. Those are:
Who will deposit cheque for clearing: Only the regular customers who have different type of
a/c in bank can deposit cheque for collection of fund through house.
Clearing house:
Clearing house means house where the representatives of the bank meet after 3 p.m. to receive &
deliver dishonored cheque. The dishonored cheque entry in the return register & the party is
informed about it. After duration the return cheque is sent to the partys mailing address with
return memo. Partys signature required in the return register to deliver the dishonor cheque.

30

3.6.1. Outward cheque clearing:

Any branch of SJIBL can not sends the cheque of different banks directly Clearing house
belonging Bangladesh Bank. When Mirpur Road branch of Shahjalal Islami Bank Limited
receives cheque of other banks to collection then SJIBL sends those cheques to Dhaka main
branch sends it to Bangladesh Bank. Bangladesh Bank arranges the cheques separately by the
name of different banks. In clearing house this jobs is to done twice a day which are known as
first house and return house. First house is to deliver and collect cheques from other banks.
Return house is to return the dishonored cheques.
Bangladesh Bank maintains individual account for each bank and regulates the balance according
to the flow of cheque in both outward and inward ways.
After completing the clearance the representative of Dhaka main branch of SJLBL sends an inter
Branch Credit Advice (IBCA) to the Mirpur branch. Receive of IBCA is considered as clearance
for the payment of the client.
The transaction process of clearing a cheque for collection as follows:

Table-Transaction Process of clearing a cheque for collection

Before ClearingSJIBL general a/c

Dr.

31

Client a/c

Cr.

IBCA a/c

Dr.

SJIBL general a/c

Cr.

Client a/c

Dr.

SJIBL general a/c

Cr.

After cheque honored-

Cheque return-

Figure: 4: Transaction Process of clearing a cheque for collection

Source: From interview the charge of local remittance department of Shahjalal Islami Bank
Limited.

3.6.2. Inward Cheque clearing:

This Process is opposite of outward cheque clearing. In this case other banks send cheque for
clearing through the clearing house to Dhaka main branch of SJIBL and Dhaka main branch send
it to the particular branch. Receiving confirmation from the particular branch, Dhaka main branch
gives forward to the sender bank mentioning account status.

Cheque may dishonor for any of the following reasons:

If the crossing seal of the collecting bank on the face of the instrument is not affixed the
instrument should not be honored.

If the clearing seal with present date is not affixed on the face of the instrument, the
instrument should be returned unpaid.

32

Date on the face of the instrument must be checked carefully. If the cheque is post-dated or
anti-dated the cheque should be returned unpaid.

If the cheque does not bear the signature of the drawer on the face of the cheque, the cheque
must be returned.

If the drawers signature of the cheque differs with the Specimen Signature Card, the cheque
should not be honored.

If the amount in word differs with figures the instrument should not be honored.

If the instrument does not bear the endorsement on the back the instrument, the instrument
should be returned.

If the drawer stops the instrument, the instrument should be returned unpaid.

If the instrument is mutilated and the collecting bank does not confirm the same, the
instrument should be returned.

If the alteration in date / figure / words is not confirmed by the drawer the instrument should
not be honored.

If the collecting banks discharge is irregular, the instrument should be dishonored.

Subsequent reasons are the imperative reasons for returned or unpaid cheque

Insufficient fund.

Amount in figure and word differs.

Cheque out of date/post-dated.

Drawers signature differs.

Payment stopped by drawer.

Crossed cheque to be presented through a Bank.

Payees endorsement required banks confirmation.

Other specific reasons not mentioned above

33

3.6.3. Outward Bill Collection:

When the bank is same but branch is different then the cheque or pay order is send to the
particular branch through outward bill collection or OBC if the client does not have any online
transaction permission.

3.7 Deposit Section:

3.7.1. Monthly Term Deposit Rate (MTDR):
Features:

According to Islami Shariah Mudaraba principals Bank receive and deposit in this
account from 10,000 to above any amount and as receive those particular amount bank
will give none returnable receipt to the account holder.

In this account bank offers three months, six months, one year and above time period to
maintain the account of account holder.

If the account holder withdraws his or her principal amount before one month then bank
will not grant any profit, but after completing one month and before maturity date in date
case bank will pay profit according to the profit rate on deposit.

On maturity date the account holder has to withdraw or renew his account among 10 days
and if it not possible then the account will renew automatically by the bank. After
maturity the client gets the principal amount along with the profit.

The rule of counting profit:

Principal amount * Percentage (%) 360 days-Excise duty = Profit.

Provisional profit rate of MTDR:

34

Table:2: Equal Monthly Installments Sample

3 Month
6 Month
1 Year

9.5%
9.5%
9.5%

3.7.2. Monthly Income Scheme (MIS)

Features

According to the Islami Shariah Mudaraba principals bank receive and deposit in this
account 50,000 or any amount of multiply of 50,000. As receive those particular amount
bank will give none returnable receipt to the account holder.

The time period of this account is 3 years.

To maintain this account, account holder has to open a Mudaraba Savings Account or AlWadiah Current account.

Bank Transfer the monthly profit amount in that savings or current account.

After death of account holder the nominee will get the amount. The nominee must be
chosen by the account holder.

Account holder has to know to bank if their is any kind of changes that he go through
(address, telephone number change etc.).

Account holder does not close his or her account before one year if he or she does so in
that case account holder does not get any profit.

In a same branch account holder can open account more then one.

35

Provisional Profit rate of MIS:

Table: 3: Equal Monthly Installments Sample
3 Years

9.60% i.e.
(TK.800/= Per month per
Lac)

Source: From interview with the in charge of general banking department of Shahjalal Islami
Bank Limited.

3.7.3. Double Benefit Scheme (DBS):

Features

According to the Islami Sharaiah Mudaraba Principals bank receive and deposit in these
account from 10,000 to above any amount and receives those particulars amount bank
will give none returnable receipt to the account holder.

The time period of this account is 7.6 Years. Account holders principal amount will be
double by 7.6 years.

Account holder do not close his or her account before one year if he or she do so in that
account holder do not get any profit.

After death of account holder the nominee will get the amount. The nominee must be
chosen by the account holder.

Account holder has to know to bank if their is any kind of changes that he go through
(address, telephone number change etc.).

36

In a same branch account holder can open account more then one.

Provisional Rate of DBS:

Table: 4: Equal Monthly Installments Sample

9.30% i.e.
7.6 Years

Principal amount
will be doubled by 7.6 years

3.7.4. Triple Benefits Scheme (TBS):

Features

According to the Islami Sharaiah Mudaraba Principals bank receive and deposit in these
account from 10,000 to above any amount and receives those particulars amount bank
will give none returnable receipt to the account holder.

The time period of this account is 11.9Years. Account holders principal amount will be
Triple by 11.9 years.

Account holder do not close his or her account before one year if he or she do so in that
account holder do not get any profit.

After death of account holder the nominee will get the amount. The nominee must be
chosen by the account holder.

Account holder has to know to bank if their is any kind of changes that he go through
(address, telephone number change etc.).

37

In a same branch account holder can open account more then one.

Provisional Rate of TBS:

Table: 5: Equal Monthly Installments Sample
9.40% i.e.
11.9 Years

Principal amount will be

Tripled in nine years.

Source: From interview with the in charge of general banking department of Shahjalal Islami
Bank Limited

3.7.5. Millionaire Deposit Scheme (MS):

According to the Islami Sharaiah Mudaraba Principals bank receive and deposit in
this account.

In these account the particular amount will be receive according to the 12 years, 15
years, 20 years, 25 years time phase will be 10,00,000/-.

After death of account holder the nominee will get the amount. The nominee must be
chosen by the account holder.

Account holder has to know to bank if their is any kind of changes that he go
through (address, telephone number change etc.).

The time period of Deposit the monthly deposit amount is 1 to 25 in every month. If
any one failed to deposit in that 1 to 25, he or she give have to give fine 25 TK.

If account holder misses his or her monthly deposit consecutively 4 times then the
account will be closed.

Monthly deposits according to the time period are as follow:

38

Table: 6: Monthly deposits according to the time period are as follow:

Monthly deposit
Time Period
12 Years
15 Years
20 Years
25 Years

825/=TK.

1,410/=TK.

2,530/=TK.

3,750/=TK.
10,00,000

10,00,000
10,00,000
10,00,000

Provisional profit rate of MS:

Table: 7: Equal Monthly Installments Sample
12 Years
15 Years
20 Years
25 Years

9.40%
9.40%
9.41%
9.42%

3.7.6. Monthly Deposit Scheme (MDS):

According to the Islami Shariah Mudaraba principles bank receive and deposit in a
monthly basis from 1000 to 50,000 TK.

The time periods of this account are 5 years, 8 years, 10 years

In a same branch account holder can open account more then one.

The time period of deposit the monthly deposit amount is 1 to 25 in every month. If
anyone failed to deposit in that 1 to 25, he or she have to give fine 25 TK.

39

Account holder do not close his or her account before one year if he or she do so in that
account holder do not get any profit.

After death of account holder the nominee will get the amount. The nominee must be
chosen by the account holder.

Monthly Deposit Period is as follows:

Table: 8: Monthly deposits according to the time period of MDS.
1,000/=

2,000/=

5,000/=

10,000/=

25,000/=

50,000/=

5 Years

76,600

1,60,500

4,01,250

8,02,500

20,06,250

40,12,500

8 Years

1,43,100

3,10,000

7,75,000

15,50,000

38,75,000

77,50,000

10 Years

1,99,500

4,44,000

11,10,000

22,20,000

55,50,000

1,11,00,000

3.7.7. Hajj Deposit Scheme (HDS):

Features

According to the Islami Shariah Mudaraba Principals bank receive and deposit in a
monthly basis from 10,200 to 175 TK.

The time periods are 1 to 25 Years.

One person can open only one account.

If account holder misses his or her monthly deposit consecutively 5 times then
the account will be close.

40

The time period of deposit the monthly deposit amount is to 1 to 25 in every month. If
any one failed to deposit in that 1 to 25, he or she have to give fine 25 TK.

3.8 Credit Cards Section:

3.8.1 Visa Electronic (SJIBL Debit Card- Local)
To a customer, My card, my money concept is used for Debit Card. Any account holder of
SJIBL can apply for a SJIBL VISA DEBIT CARD against his/her Al-Wadiah Current Deposit
(AWCD), Mudaraba Savings Deposit (MSD) or Mudaraba Short Notice Deposit (MSND)
Account. He/she is fully authorized to enjoy the benefits of cash withdrawal from ATMs, liberty
of shopping, dining, paying utility bills.

3.8.1 SJIBL VISA Prepaid Card (Local)

SJIBL VISA Prepaid Local Cards are open to the customers even having no account with
Shahjalal Islami Bank Limited. Card holders can have the card against prepayment and have
access from anywhere in Bangladesh. SJIBL VISA Prepaid Local Cards are accepted locally at
all VISA labeled merchant outlets, ATMs, etc.

3.8.3 SJIBL VISA Prepaid Card (International)

SJIBL VISA Prepaid International Cards are also open to the customers even having no
account with Shahjalal Islami Bank Limited. Card holders can have the card endorsing US Dollar
paying against Travel Quota, Exporters Retention Quota or marking Lien of his/her FC Account.
SJIBL VISA Prepaid International Cards are accepted world wide at the entire VISA labeled
merchant outlets, ATMs, etc.

3.8.4 SJIBL VISA Prepaid Card (International)

41

SJIBL VISA Prepaid International Cards are also open to the customers even having no
account with Shahjalal Islami Bank Limited. Card holders can have the card endorsing US Dollar
paying against Travel Quota, Exporters Retention Quota or marking Lien of his/her FC Account.
SJIBL VISA Prepaid International Cards are accepted world wide at the entire VISA labeled
merchant outlets, ATMs, etc.

3.8.5 SJIBL VISA Prepaid Card (Dual)

The Dual Card is a hassle free product, no need to carry two separate plastic cards for local and
international card. Now, with one plastic card the Card holders can enjoy all the benefits and
make transactions locally & globally from their Prepaid card account at all the VISA labeled
merchant outlets, ATMs, etc.

3.8.6 SJIBL VISA Souvenir Card (Gift Card Local)

SJIBL Souvenir Card is a very attractive and stylish product. Like a Gift Card, SJIBL Souvenir
Card can be used by anyone wishes to. The intending customer may have the card instantly or
may customize the card as required. The SJIBL Souvenir Cards are accepted locally at the entire
VISA labeled merchant outlets, ATMs, etc.

Usage Limit

Description
Cash withdrawal limit (total)
Cash
withdrawal
limit

Transaction Limit
4 times per day
Tk. 20,000 per day

(amount)
Balance checking
Mini statement printing
PIN change
Invalid PIN retry count
Card usage limit in ATMs

4 times per day

2 time per day
2 times per day
3 times per day
10 times per day

(total)

42

CHAPTER-4
43

Analysis

4.1. Customer perception on quality of general banking activities

Table: Average quality of general banking activities.
Particulars

No. of Clients

Percentage

Standard

30%

Average

10

33.33%

Good

23.33%

Fair

13.33%

Total

30

100%

Source: Questionnaire survey

44

Graph: Average quality of general banking activities

The above graphical presentation shows that 33.33% of customers are average satisfied on
general banking activities. Where 30% standard, 23.33% good, 13.33% fair. So, Customers are
average satisfied on the performance of general banking activities.
4.2. Customer perception on A/C opening procedure:
Table: Customer perception on A/C opening procedure
Customer perception on A/C No. of Clients

Percentage

opening procedure
Excellent

10

33.33%

Good

11

36.67%

Moderate

20%

Poor

6.67%

Very poor

3.33%

Total

30

100%

45

Source: Questionnaire survey

Graph: Customer perception on A/C opening procedure

The above graphical presentation shows the customer perception on A/C opening procedure.
33.33% customer said excellent, 36.67%customer said good, 20% moderate, 6.67%poor, and
3.33% very poor.

4.3. Customers perception on service

Table: Customers perception on service
Customers perception on No. of Clients

Percentage

service
Delight

20%

Satisfied

12

40%

Moderate

10

33.33%

Dissatisfied

6.67%

Total
30
Source: Questionnaire survey

100%

46

Graph: Customers perception on service

The above graphical presentation shows that 40% customer have Satisfied perception on service
of SJIBL 33.33% customers are Moderate, 20% are delighted and 6.67% percentage of customer
shows their dissatisfaction.

4.4. Customers perception on believe that your bank employees understand your specific need.
Table: Customers perception on specific need
Customers

perception

on No. of Clients

Percentage

specific need
Strongly believe

08

26.67%

Believe

13

43.33%

Moderate Neither believe or

13.33%

Neither believe or disbelieve

10%

Strongly disbelieve

6.67%

disbelieve

47

Total

30

100%

Source: Questionnaire survey

Graph: Customers perception on specific need

The above graphical presentation shows that Customers perception on specific need, 26.67%
strongly believe, 43.33% believe, 13.33% moderate neither believe nor disbelieve, 10% Neither
believe or disbelieve, 6.67% Strongly disbelieve.
4.5. Customers perception on your bank use modern technology in banking sector.
Table: Customers perception on use modern technology
Customers perception on use modern

No. of Clients

Percentage

technology
Agree
Disagree

21
9

70%
30%

Total

30

100%

Source: Questionnaire survey

48

Graph:

The chart shows that 70% Customers are agree the bank use modern technology in banking
sector and 30% disagree.

6. Customers perception on the locker service ability of your bank is much protected
Table: Customers perception on the locker service ability
Customers perception on the locker

No. of Clients

Percentage

service ability
Yes

18

60%

No
Total

12
30

40%
100%

49

Graph: Customers perception on the locker service ability

The chart shows that 60% customers are said yes their locker service facility are
protected and 40% said No .
7. Customers perception on the Charges on various services
Table: Charges on various services
Charges on various services

No. of Clients

Percentage

Excellent

23.33.%

Good

30%

Competitive

10

33.33%

Fair

13.33%

Total

30

100%

Source: Questionnaire survey

50

Graph: Customers perception on the Charges on various services

The above graphical presentation shows different charges on various services provided to various
services. The values are 23.33 %, 30%, 33.33%, 13.33% which denotes excellent, good,
competitive & fair
8. Customers perception on Interest rate provided for deposit A/C
Table: Interest rate provided for deposit A/C
Particulars

No. of Clients

Percentage

Attractive

12

40%

Competitive

10

33.33%

Good

20%

Fair

6.67%

Total

30

100%

Source: Questionnaire survey

51

Graph: Interest rate provided for deposit A/C

The above graphical presentation shows different interest rate provided to various services. The
values are 40%, 33.33%, 20% and 6.67% which denotes attractive, competitive, good and fair
9. Customers perception with the local remittance (PO/DD/TT) services.
Table: Customers perception with the local remittance (PO/DD/TT) services.
Customers perception on with the local

No. of Clients

Percentage

remittance (PO/DD/TT) services.

Yes
No

22
8

73.33%
26.67%

Total

30

100%

52

Graph: Customers perception with the local remittance (PO/DD/TT) services.

The chart shows that 73.33% Customers are said Yes with the local remittance
(PO/DD/TT) services run smoothly and 26.67% said No.
10. Customers perception on reliability on your bank.
Table: Reliability
Particulars

No. of Clients

Percentage

Reliable

23

76.67%

Non reliable

23.33%

Total

30

100%

Source: Questionnaire survey

53

Graph: Reliability of the Bank

The chart shows that 73.33% Customers are reliable and 23.33%Non reliable.
4.11 Quality of Money transfer
Table: Quality of Money transfer
Quality of Money transfer
Excellent
Satisfactory
Moderate
Poor
Very poor
Total
Source: Questionnaire survey

No. of Clients
11
9
7
2
1
30

Percentage
36.36%
30%
23.33%
6.67%
3.33%
100%

Draw Graph

Graph: Quality of Money transfer

The above graphical presentation shows the performance of Money transfer of SJIBL are 36.36%
customer said excellent, 30% Satisfactory, 23.33%moderate, 6.67%poor, 3.33% very poor.
4.12. Attitude of employees
Table: Attitude of employees
Attitude of employees
Excellent
Good
Moderate
Poor
Very poor
No comments
Total

No. of Persons
12
9
4
2
1
2
30

Source: Questionnaire survey

54

Percentage
40%
30%
13.33%
6.67%
3.33%
6.67%
100%

Graph: Attitude of employees

The above graphical presentation shows the attitudes of employees of SJIBL. The percentage are,
40%excellent, 30% good, 13.33% moderate, 6.67%, 6.67% poor,3.33%very poor & 6.67% shows
no comment,.

55

CHAPTER-5

Findings of SJIBL

5.1 Major Findings:

56

All branches of SJIBL have online facilities for transaction, so it is very helpful for the
clients to deal with the bank easily.
SJIBL decision making is highly centralized. It seems to me, all the decision making
authority is concentrated into the head of top level management.
Unwarranted intervention by the central bank in every step of general banking creates
problem like customer dissatisfaction, slowing down the daily process etc.
Customer perception on average quality of general banking activities.
SJIBL have not provides easy term and condition for account opening & any transaction to
customer. It means some difficulty there in term & condition.
The service of SJIBL is satisfactory.
Modern technical equipment such as computer is sufficient in general banking department.
Locker service facility is much secured because they take an extra care for this service.
Charges on various services are so competitative.
Interest rate provided for deposit A/C is attractive.
SJIBL local remittance business is moderate because employees are train up in using
technology.
Quality of money transfer facilities is Satisfactory
Deposit of Mirpur branch of SJIBL is very good but the investment sectors schemes are not
so popular than deposit schemes.

57

CHAPTER-6
Conclusions of SJIBL

6.1 Conclusion:

58

Shahjalal Islami Bank Limited is an Islamic shariah based bank in private banking sector. The time
period of this bank is very little although SJIBL has already made a good position among the Islam
oriented banks as well as private banks and create an image in the clients mind. Eight years is not
very big but with in this short time SJIBL create a good financial condition and total deposits of the
bank are fairly satisfied. Shahjalal Islami Bank Limited believes that building strong relation
relationship with all stakeholders, particularly customers, is crucial for growth and prosperity.
Technology and competition have made it vital for to build stronger bonds with the customers to meet
their need at their convenience. SJIBL put emphasis on meeting this continuous challenge of
managing relationship. During the course of my practical orientation I have tried to learn the practical
banking to relate with my theoretical knowledge. This internship was arranged for gaining knowledge
of practical banking and to compare this practical knowledge with theoretical knowledge involves
identification and making recommendations. Effective Corporate Governance producers are essential
to achieving and maintaining public trust and confidence I the banking sector, which are critical to the
proper functioning of the banking sector and economy as a whole. Shahjalal Islami Bank Limited
will continue to reinforce their efforts to meet the needs and expectations of customers. SJIBL setting
goals and challenges for employees to respond better to customer needs. SJIBL make themselves
from the competitors through Shariah based services and flexible and personalized services.

59

CHAPTER-7
Recommendations

7.1 Recommendations:

60

SJIBL may appoint a change catalyst to stimulate the profitability of the

bank with proper planning and controlling of the functional level.
Bank should introduce more retail products so that clients can choose
among many options.
It should take creative activities to overcome any changing situation.
To enhance the image of the bank, SJIBL should be engaging it self with
some social causes and responsibility.
Banking is a service-oriented marketing. It business profit depends on its
service quality.
Charges on various services should be flexible.
The bank should go aggressive promotional activities to get a broad
geographic coverage
SJIBL should be provide easy term and condition for account opening &
any transaction to customer.
SJIBL should be conscious about local remittance business.
SJIBL money transfer procedure should be improved.
In some of the cases of general banking operation, customers are
dissatisfied. So, the banker should be more careful and sincere in customer
services. The head office of the SJIBL can form a committee to evaluate the
customer services.
A philosophy of working for the clients intended of working for the boss must be
introduced.
The overall general banking service is sufficient enough but I accept as true it can
be better with more workforce and further additional service for customers.

61

CHAPTER-7
Bibliography

Bibliography
62

Books:
Kotlar p. and Armstrong G. Principles of Marketing.11th edition. Prentice- Hall
India Pvt. Ltd. New Delhi. (2006)
Lovelock C. & Wirtz J. Service Marketing, People, Technology, Strategy. 5th
edition. Pearson Education Pvt. Ltd. Singapore. (2004)
Malhotra K.N. Marketing Research, An Applied Orientation. 4th edition. PrenticeHall India Pvt.Ltd.New Delhi. (2007-2008)
Schiff man G.L. & Kanuk L.L. Consumer Behavior. 8th edition. Prentice-Hall India
Pvt. Ltd. New Delhi. (2004)
Web sites:
Bangladesh Bank Official Website. www.bangladesh-bank.org.
Centre for Policy Dialog Official Website. www...cpd-bangladesh.org.
Shahjalal Islami Bank Limited Official Website. www.shahjalalbank.com.bd.
Articles/ Reports:
Abdul A.S. (2000, February) Regulation of Islami Banking in Bangladesh: Role of
Bangladesh Bank. International Journal of Islamic Financial Services vol-2, No-1. From
http://islamic-fince.net/journal5/art4.pdf.
Shahjalal Islami Bank Limited : Annual Report
Annual reports:
Annual reports of SJIBL (2006, 2007,2008,2009)
------------- 0 -------------

63

CHAPTER-7
Appendix

64

Appendix
Questionnaire Survey

Dear Sir,
I could do with your precious judgment for my Report on Shahjalal Islami Bank Limited. to
improve their service.
[This assessment is being conducted to determine the customers perception about the service
eminence of SJIBL. It may take approximately 8 to10 minutes to inclusive this assessment.
Participation in this survey is completely deliberate. You can rest assured that all your given
information will be kept strictly secret. Please try to fill in the entire survey.]

Questionnaire for clients / customers of SJIBL.

Name:
Address:
Occupation:
1) What are the main causes for choosing Shahjalal Islami Bank Limited for General Banking
operation?
a) Personal relation with bankers
b) Good / Efficient service
c) Interest rate banking system
d) Location of the bank
e) Reputation of the bank
f) Other

65

2. What is the Maximum type of client of your bank?

a) Male

b) Female

3. Clients age group:

a) 20-30

b) 30-40

c) 40-50

d) 50 and above

4. What are the qualities on the performance of general banking activities of your bank?
a.)Standard

b) Good

c) Moderate

d) Poor

e) Very poor

5. What is your opinion about formalities of opening account in SJIBL?

a) Excellent

b). Good

c) Moderate

d). Poor

e) Very poor

6. What is your satisfactory level on services of SJIBL?

a). Delight

b) Satisfied

c). Moderate d) Dissatisfied

7. How strongly do you believe that your bank employees understand your specific need?
a) Strongly believe b) Believe
c) Disbelieve

c). Neither believes nor disbelieve

e). Strongly disbelieve

8. Do you think your bank use modern technology in banking sector?

a) Agree

b) Disagree

9. Do you think the locker service ability of your bank is much protected?
a)

Yes

b) No

10. Have you satisfied the charges on various services?

a)

Excellent b) Good c) Competitive d) Fair

11. What is the Interest rate provided for deposit A/C of your bank?
a)

Excellent b) Good c) Competitive d) Fair

12. Are you satisfying with the local remittance (PO/DD/TT) services?
a)

Yes

b) No

13. Do you think that A/C holders are reliable on your bank?
a) Reliable

b. Non reliable

14. What are the qualities of money transfer of your bank?

a) Excellent

b) Good

c) Moderate

66

d) Poor

e) Very poor

15. Attitude of employees isa) Excellent

b) Good c) Moderate d) Poor e) Very poor f) No comments

16. Express your opinion regarding your bank:

..

67

Financial Statement:
SHAHJALAL ISLAMI BANK LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2009
PROPERTY AND ASSETS
2007
2006
Cash
Cash in hand (Including Foreign Currencies)
261,429,435
142,281,739
Balance with Bangladesh Bank & Sonali Bank
(Including Foreign Currencies)
1,641,085,037
1,026,778,924

2009

2008

562,922,561

449,615,577

3,515,663,193

2,773,858,394

4,078,585,754
1,902,514,472
1,169,060,663
Balance with other Banks and Financial
Institutions
Inside Bangladesh
3,978,605,071
3,621,506,648
Outside Bangladesh
149,449,849

3,223,473,971

1,729,470,208

546,298,932

404,441,115

168,432,590

168,428,566
_____________

____________

____________

__________
2,133,911,323
4,128,054,920

714,731,522

3,789,935,214
_____________

____________

___________

____________
Placement with other Banks & Financial
Institutions

4,287,781,041

5,270,089,600 _____________
______________
____________
___________ Investments in Shares & Securities
Government
1,100,000,000
800,000,000
858,994,699
500,000,000
Others
2,383,146,682
344,189,400
3,483,146,682
1,144,189,400
858,994,699
500,000,000
_____________
_____________
___________
____________
Investments
General Investment etc.
40,369,639,045 2
9,197,016,442
19,028,608,508
14,207,244,676
Bills Purchased and Discounted
3,588,621,666
3,721,757,226
1,587,996,827
1,308,545,007
____________
___________
____________
____________
43,958,260,711 32,918,773,668
20,616,605,335 15,515,789,683

68

____________
____________
_______________ _______________
Fixed Assets Including Premises
620,466,461
338,806,004
127,055,567
92,738,456
Other Assets
358,743,429
499,438,757
713,771,402
275,030,922
Total Assets
58,920,895,401 44,109,502,922
28,346,996,395 21,342,554,938
LIABILITIES AND CAPITAL
Liabilities
Placement from other Banks & Financial
Institutions
4,500,000,000
4,654,500,000
1,545,000,000 1,360,000,000
Deposits and Other Accounts
Mudaraba Savings Deposits
3,072,788,942
1,863,522,467
1,832,746,451
913,162,681
Mudaraba Term Deposits
27,578,741,808
18,985,664,403
11,341,507,251 10,252,660,459
Other Mudaraba Deposits
12,489,742,364
10,191,759,337
7,477,877,578
5,498,058,752
Al-Wadeeah Current & Other Deposit Accounts
3,966,538,988
2,975,717,377
1,684,623,059
1,237,913,399
Bills Payable
351,419,391
263,076,409
281,432,964
188,852,087
_____________
_____________ _____________
_______________
47,459,231,493
34,279,739,993
22,618,187,303 18,090,647,378
Other Liabilities
1,995,596,548
1,549,568,372
1,396,077,951
686,994,110
Deffered Tax Liabilities
39,434,092
20,253,883
________________
________________ _______________
_____________
Total Liabilities
53,994,262,133
40,504,062,248
25,559,265,254 20,137,641,488
______________ _____________
________________ ______________
Capital/Shareholders' Equity
Paid-up Capital
2,740,095,600
2,245,980,000
1,871,650,000
935,825,000
Statutory Reserve
1,182,585,039
823,552,175
510,392,155 267,130,476
Retained Earnings
753,328,328
535,908,499
405,688,986
1,957,974
Asset Revaluation Reserve
250,624,301
_____________
___________ ________________
_______________
Total Shareholders' Equity
4,926,633,268
3,605,440,674
2,787,731,141 1,204,913,450
Total Liabilities & Shareholders' Equity
58,920,895,401 44,109,502,922
28,346,996,395 21,342,554,938

69

SHAHJALAL ISLAMI BANK LIMITED

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2009
2009
2007

2008

2006
Taka

Taka Taka

Taka
Investment Income

5,530,882,252

4,236,170,670
2,973,438,485

2,145,494,920
Less: Profit paid on Deposits

4,200,278,401

2,962,395,290
1,960,018,549

1,491,365,216
Net Investment Income
1,013,419,936
654,129,704
Income from Investment in Shares/securities
97,974,405
13,000,000
Commission, Exchange and Brokerage
410,789,737
338,142,041
Other Operating Income
106,640,445
67,002,104

1,330,603,851

1,273,775,380

23 409,019,391

192,717,942

926,165,551

693,074,139

250,973,073
1,586,158,015

615,404,587
418,144,145
Total Operating Income
1,628,824,523
1,072,273,849

2,916,761,866

Salaries and Allowances

141,466,388
117,736,614

466,715,391

70

163,423,896
1,049,215,977
2,322,991,357
271,249,767

Rent, Taxes, Insurances, Electricity etc.

56,771,845
33,232,253
Legal Expenses
375,627
380,568
Postage, Stamps, Telecommunication etc.
9,190,084
6,775,332
Stationery, Printings, Advertisements etc.

100,478,972

69,802,239

724,909

521,683

11,315,142

9,398,720

40,536,536

29,702,471
21,615,671

15,498,255
Chief Executive's Salary & Fees
5,350,000
3,245,400
3,874,724
Directors' Fees & Expenses
4,040,999
3,245,400
3,874,724
Shariah Supervisory Committee's Fees & Expenses
152,557
3,535,342
2,538,989
Auditors' Fees
200,000
100,000
100,000
Depreciation & Repairs of Bank's Assets
52,631,301
23,857,691
18,752,124
Zakat Expenses
22,330,358
Other Expenses
171,121,380
53,658,084
28,316,699
Total Operating Expenses
875,597,545
313,816,132
227,205,558

3,900,000
2,302,983
144,610
200,000
31,862,115
94,106,670
513,191,258

Profit before Provision

2,041,164,321
1,315,008,391 845,068,291
Specific provisions for Classified Investment
(80,000,000)
(2,200,000)
(6,500,000)
General Provisions for Unclassified Investment
(125,000,000)
(58,000,000)
(51,000,000)
General Provisions for Off-Balance Sheet
(40,000,000)
(37,500,000)
Provisions for deminution in value of Investments in Shares Provisions for Other Assets
(1,000,000)
(1,000,000)
Total Provision
(246,000,000)
(98,700,000) (57,500,000)
Total Profit before Provisions for Taxation
1,216,308,391 787,568,291
Deferred Tax Expenses
880,204
175,146,579
Current Tax Expenses
68,435,496
149,205,000

1,809,800,099
(5,000,000)
(140,000,000)
(70,500,000)
(27,500,000)
(1,000,000)
(244,000,000)

1,795,164,321

1,565,800,099

19,180,209

13,472,886

2 705,415,819

734,617,680

724,596,028
569,315,700
324,351,579
Net Profit after Taxation
646,992,691
463,216,712
Appropriations
___________
__________
Statutory Reserve
243,261,679
157,513,658
Retained Earnings
403,731,012
305,703,054

1,070,568,293
_____________
359,032,864
711,535,429

71

748,090,566
817,709,533

____________
313,160,020
504,549,513

1,070,568,293
646,992,691 463,216,712
Profit available for distribution
Retained Earnings from previous year
Add: Retained Earnings of Current year

41,792,899
711,535,429
753,328,328

646,992,691 463,216,712
Earning Per Share (EPS)
34.57

39.07

817,709,533
31,358,986
504,549,513
535,908,499
29.84

(Source: http://www.shahjalalbank.com.bd/Financial_Statements.asp)

72