Kazi Wasim-uz-zaman

Mirza Farhat Anjum

Towsif Ur Rahid
Makin Rishalat Jitu
State Bank of Pakistan
renamed as Bangladesh
Bank
Permitted foreign banks
to continue operation

Nationalizing local banks

License for private banks
Aggressive investments of Local
companies
Growth in GDP
Number of private banks went up
4 state owned banks, 5 specialized
banks, 31 local private commercial
banks and 7 Islamic Commercial
Banks and 9 foreign commercial banks
operating now
Popularity
rising around
the world
Extraordinary growth
and expansion
Islamic Banking
Services from
Conventional banks
Establishment of a
group comprising
representatives of
central Bank, Islamic
Banks and also the
Central Sharia Board
for Islamic Banks of
Bangladesh
Islami Bank
Shahjalal Islami Bank
Exim Bank
First Security Islami Bank
Al-Arafah Islami Bank
ICB Islamic Bank
Social Islami Bank
Established as a private limited
company on 1995
Follows the Islamic Sharia law
strictly
Sharia based profit/loss system to
get rid of the usury
Inauguration took place on 27
September 1995
AIBLs authorized capital is
BDT5000 million and its paid up
capital is 4677.28 million as of 2010
Number of employees: 2500-3000
Short-term deposits: One months MTDR (Mudaraba Term Deposit), three
months MTDR, Six months MTDR, one year to three years MTDR
Mudaraba Monthly Saving Scheme, consists of different amounts with different
time periods
Mudaraba Hajj scheme for hajjis
Murabaha
Bai-Muazzal
Brokerage house, Green Banking
Chairman
Managing
Director
Board of
Directors
Additional
Managing
Director
Deputy
Managing
Director
Executive
Vice
President
Senior
Assistant
Vice
President
Assistant
Vice
President
Assistant
Officer
Junior
Officer
Management
Trainee
Officer
Executive
Officer
Trainee Officer
External Recruitment
Corporate Web-site
Newspaper
Job Web-site
Interns (Less frequently used)
Internal Recruitment
Promotions & Transfers
Job Posting
Employee Referrals

Objectives
Enhancing the capacity
of the employee
Building an effective,
accountable
committed employee
Equipping Human
Resources with
requisite skills and
techniques
Trainees
Management
Trainee Officers
Executive Officers
Branch Managers
Officers of different
grades
Training institutions
AL-Arafah Islami Bank
Training & Research
Academy (AIBTRA)
Bangladesh Institute of
Bank Management (BIBM)
Bangladesh Bank Training
Academy
Programs
Training courses
Workshops
Executive workshops
Executive Development
Program (EDP)
Outreach workshops
IT training (ICT lab)


Total Training programs during 2013 : 79
Total Trainees: 2861
Annual
Performance
Appraisal
Very strict
Promotion
and salary
decisions
Key
considerations
Annual
Performance
Report (APR)
Educational
qualification
Training
received
Figure: Annual Performance
Report
Compensation
Basic salary
Allowances
Housing (50% of Basic )
Medical, transportation
Bonuses
2 festival bonuses
Incentive bonuses
Based on profit
8 people last year
Salary increment
For everyone
Exception : negative APR
Leave
Casual leave (15 days)
Earned leave (33 days)
Mandatory leave with one basic
(15 days )
6 months of maternity leave with
pay
Recruitment from 2009
Equal opportunity for
women
To maintain decency and discipline Female dress code
To provide comfortable environment
Minimum of two female
employees at a branch
To remove monotony
Full implementation of
the mandatory leave
No personal relationships and references bias No employee bias
Open door
policy
Mandatory
transfer of
employees
every three
years (success
rate 60%)
Employment for
the family
members of a
deceased
employee
6 months
maternity leave
(with full pay)
Exit interview
Only people
from Islamic
background
are recruited
Female dress
code
No single
women can
be appointed
in one
branch
Mandatory leave
Very strict annual performance appraisal
Training and skills development
Ease of access
Employee retention
Transfer of employees
At AIBL its mandatory to transfer
employees after every 3 years. This
policy has 60% success rate. it creates
a big problem as for the branch
managers and employees.


Year Turnover rate
2007 4.1
2008 2.1
2009 1.09
2010 0.95
2011 0.48
2012 0.09
2013 0.04
Recruitment
through BIBM

Employee
turnover rate

Employment
support after
death
Budget planning
Diversification of
HR department
form Head
Office
Recruitment and
selection team

Al Arafah Islami Bank Limited (AIBL) follows some unique
recruitment and HRM policies. The analysis of AIBL under
HRD revealed that people are most valuable resources for the
progress of the organization. AIBL make use of its most
important resource by developing and satisfying every need
of the employees. And the effective use of the human
resource makes the organization to achieve up to its
expectations and desired goals.