Internship ReportOn Modes of Investment of Islami Bank Bangladesh Limited Mohammadpur Krishi Market Branch Shahana Shofi ID NO. BBA070102072 Major in Human Resource Management Date of Submission: 16th January, 2011. i Internship Report On Modes of Investment of Islami Bank Bangladesh Limited Mohammadpur Krishi Market Branch Supervised By Syed Mustafizur Rahman Chowdhury Senior Lecturer, MIS Department of Business Administration Northern University Bangladesh Submitted By Shahana Shofi ID NO. BBA070102072 Major in Human Resource Management Date of Submission: 16th January, 2011. ii Student’s Declaration I am Shahana Shofi, bearing ID BBA070102072, student of BBA program of Northern University Bangladesh, Major in Human Resource Management; do hereby declare that the internship report titled ‘Modes of Investment Operation of Islami Bank Bangladesh Limited at Mohammadpur Krishi Market Branch’ is an original. The assigned work is done by me for partial fulfillment of my BBA degree, as a part of academic curriculum. It has not been submitted by me before for any other degree. Shahana Shofi BBA 070102072 Major in Human Resource Management Department of Business Administration Northern University Bangladesh iii Certification This is to certify that Shahana Shofi student of Northern University Bangladesh bearing ID NO-BBA070102072 under faculty of Business Administration has done an internship report titled Modes of Investment of Islami Bank Bangladesh Limited at Mohammadpur Krishi Market Branch under my supervision. The student is found to be intelligent, sincere and hardworking. The student has put in lot of work and has also brought forth her views and ideas which are being studied for implementation at appropriate time. It is a record of research carried out by Shahana Shofi under my supervision. No part of project and thesis report has been submitted for any degree, diploma, and title of recognition before. I wish her every success in her future endeavor. Supervisor Syed Mustafizur Rahman Chowdhury Senior Lecturer, MIS Department of Business Administration Northern University Bangladesh Committee Chairman Department of Business Administration Northern University Bangladesh iv Northern University Bangladesh Subject: Submission of Internship Report. I will be obligate to provide with further explanation. I tried my best to present this internship report on “Islamic Banking System Practiced By Islami Bank Bangladesh Ltd. if you need any clarification.Letter of Transmittal Date: 16th January. Sincerely yours. I tried my best to work sincerely to cover all aspects regarding the matter.” as per your guideline. Sir. 2011 Syed Mstafizur Rahman Chowdhury Senior Lecturer in MIS Department of Business Administration. time limitation and not enough knowledge about banking sector. I am pleased to submit the internship report as a partial fulfillment of BBA program. I sincerely hope that you will appreciate my effort. However. Shahana Shofi ID No-BBA070102072 Major in HRM Department of Business Administration Northern University Bangladesh v . Though I have faced some limitations to prepare the report due to scarcity of organized data. directions for further improvement of the report. suggestion. I also express my thanks and gratitude to the authority of IBBL to allow me to complete my practical orientation at their bank and helped me by providing all sorts of information to prepare of this report. Shahid Uddin Ahmed (Vice-President & Manager) at Mohammadpur Krishi Market branch of Islami Bank Bangladesh Ltd. I also would like to thank Muhtarima Mahmuda Sultana. I would like to thank all other officers in this branch to help me despite tremendous work pressure. vi . Senior Principal Officer and faculty member. Among them Syed Mustafizur Rahamn Chowdhury Senior Lecturer Department of Business Administration Northern University Bangladesh who has spent his valuable time in supervising my study very closely and cordially. as well as give me suggestion to conduct the study. I am thankful to all of them for their assistant and encouragement. I am also grateful to other personnel of this academy. At first I dedicate all the credits to the Northern University Bangladesh. I cannot deny his suggestions to apply new indebted to his contribution. I would like to thanks my gratitude to Md. A large number of individuals have contributed directly and indirectly in the preparation of this report. Special mention must be made to some persons from whom I have received continuous support without which it might not be possible for me to complete the report. I would very much appreciate and sincerely acknowledge suggestions from friends for improving of this report. They tried their best to manage their valuable time for me in finishing information.ACKNOWLEDGEMENT First I would like to thank almighty Allah for blessing me with the ability to write and submit this report. Islami Bank Training and Research Academy (IBTRA) of IBBL for her full support and encouragement. With that objective in view IBBL has formulated a profitable investment option for the poor a credit program to earn and live in a better society with greater security and peace. Because most of the people in our country are religious minded and they want to invest their money according to Islamic Shariah. First part is the introduction part.Executive Summary This report focuses my experience in Islami Bank Bangladesh Limited. This report has provided a clear idea about the Modes of investment of Islami Bank Bangladesh Limited. and Hire purchase under Shirkatul Meelk etc. Moreover people of all walks of life can easily transact with IBBL comparing to other commercial private banks in the country. Second part is the profile of IBBL which gives a clear idea about establishment of IBBL. Bai-muajjal. like Bai-mudaraba. Investment performance of IBBL. This type of investment also divides into many other parts. End of the report there have conclusion and recommendation. In this regard IBBL has introduced a number of income generating programs for the million of urban and rural poor. Share-mechanism. and Ijarah-mechanism. Fourth part discusses about analysis and learning points of Mohammadpur Krishi Market Branch. Bai-mechanism. Modes of investment of Mohammadpur Krishi Market Branch are divided into three parts. It follows the alternative concept of Islamic Banking which represents unique human approaches to credit and banking based on profit-oriented economy devoid of interest. vii . Basically IBBL is an Islamic Bank based on “Islamic Shariah”. It contains five main parts. Mohammadpur Krishi Market Branch is increasing day by day. Third part focuses on Internship Position and Duties. ABBREVIATION AOF AVP AWCA BBA DD EVP HPSM IBBL IBTRA IT KYC MDDS MMDS MMPS MSDA MSNDA MTD NUB PO PO SBIS SPO SVP SWOT TT VP : : : : : : : : : : : : : : : : : : : : : : : : : : Account Opening Form Assistant Vice President Al-Wadiah Current Accounts Bachelor of Business Administration Demand Draft Executive Vice President Hire Purchase under Shirkatul Meelk Islami Bank Bangladesh Limited Islami Bank Training & Research Academy Information Technology Know Your Customer Mudarabah Deposit Deouble Scheme Mudarabah Monthly Deposit Scheme Mudarabah Monthly Deposit Double Scheme Mudarabah Savings Deposit Accounts Mudarabah Special Notice Deposit Accounts Mudarabah Term Deposit Northern University Bangladesh Pay Order Principal Officer Small Business Investment Scheme Senior Principal Officer Senior Vice President Strength week opportunities Threats Telegraph Transfer Vice President viii . 1 Definition of IBBL: 2.3 Misson of IBBL 2.2 History behind the report 1.5 Methodology of the report: 1.6 Limitations of the study: Chapter One 2 2 3 3 4 Profile Of the IBBL 2.Table of Content Name of the Topic Executive Summary Chapter Page No: i-viii 1 Introduction Part 1.7 Characteristics of IBBL 2.10 Hierarchy Management of IBBL:(Muhammadpur Krishi Market Branch) 2.1 Introduction 1.3 Objective of the study: 1.4 Vision of IBBL 2.11 Profile of the Bank Chapter Two 5 6 6-7 7 7 7 8 8 8 9 10 11 ix .9 Hierarchy Management of IBBL 2.8 Function of IBBL 2.2 Basic Objective of IBBL 2.5 Membership of different organization 2.4 Justification of the study 1.6 Present programs of the organization 2. 7 Bai.9.6 Modes of Investment 3.8 Share-Mode 3.3 (SWOT) Analysis Chapter Five Recommendations And Conclusion References x .9.7.Internship Position & Duties 3.2 Specific Responsibilities of the job 3.3Ijarah 3.2 Musharaka 3.2.4 QTDR 4.8.3 General Banking Activities 3.2 Bai-Muazzal 4.10 Investment Processing of IBBL 3.Salam 3.7.8.1 Learning Points Chapter Four 4.2.3 Bai.2 Analysis: 4.1 Bai-Mudaraba 3.7.9.9.2 Shirkatul Meelk 3. Fixture& Library 4.9 Ijarah Mode 3.2.1 Bai-Murabaha (General) 4.5 Investment Activities 3.1 Description of Job 3.7.3 HPSM 4.Mode 3.4 Quard 3.2.11 Investment Scheme of IBBL 12 13 13 13 14 15 15-16 16 16 16 17 17 17 17 18 18 18 18 18 19 19 20 21 22 22 23 23-24 24 25 25-26 27 28-30 31 Chapter Three Analysis & Learning Points 4.2.4 Sale 3.1 Hire Purchase under ShirkatulMelk 3.1 Mudaraba 3.5 Furniture.4 Foreign Exchange 3.2 Bai-Muazzal 3. Chapter-1 Introduction xi . for economic empowerment modern world put a great effort favoring from all aspect. I have already completed our internship program from IBTRA under Islami Bank Bangladesh Ltd. I undertake microscopic analysis mainly on Different Investment Modes of IBBL and sketch picture of the same. industrialization. According to this requirement. The Bank participates in financing long-term projects on the basis of profit-loss sharing instead of granting credit facilities with interest. Islami Bank does not pay interest to depositor. As a result. They play a significant role to meet up the needs of the society such as large-scale production. In this report.. I have completed the report regarding Different Investment Modes of IBBL The main focus of my study is to analyze the investment strategy and its strength and weakness. Islami bank Bangladesh Limited is an unconditional and specialized financial institution which is first of its kind in South East Asia performs most of the standard banking service and investment activities on the basis of profit-loss sharing system conforming to the principles of Islamic Shariah.1 Introduction: Because of globalization today’s world enhances the opportunities of business and investment. Islami Bank does not lend money or issue securities with fixed interest. Instead it finance in various schemes approved by Shariah Board to achieve its goal.2 History behind the report: Under internship program each student has to prepare a report on the particular topic related with the organization. IBBL also performs various social welfare activities through its subsidiary organ named Islami Bank Foundation (IBF). xii . capital formation. On the basis of our practical experience as well as theoretical knowledge. Instead depositors participate in the profitability of the bank. in the modern society commercial banks occupy a position of economic importance. 1. Muhammadpur Krishi Market Branch.1. growth of trade and commerce etc. This also provides an opportunity to the students to minimize the gap between theoretical and practical knowledge. xiii . Students are required to work on a specific topic based on their theoretical and practical knowledge acquired during the period of the internship program and then submit it to the teacher. the detailed objectives of the study may be spelled out as follows: To familiar the history and operations of Islami Banking in Bangladesh. During the internship program the teachers of the Institute are attached to actively and constantly guide the students. 1. So it is obligatory to undertake such task by the students who desirous to complete and successfully end-up their BBA degree. To identify the problems related to investments faced by IBBL. Because the Internship program of the university is an integral part of the BBA program.3 Objectives and Philosophy of the study: The objective of the study is to fulfill the requirement of BBA program as well as to gain practical exposures about investment of IBBL. Local Private Commercial Banks and Foreign Private Commercial Banks. In line with the broad objective. They are Nationalized Commercial Banks. So I have decided to study on the topic Different Investment Modes of IBBL. which offers different General Banking. Investments and Foreign Exchange banking system. To identify strength and weakness of investments of IBBL. That is why we have prepared this report.1.4 Justification of the study: There are three types of schedule commercial banks are in operation in our economy. To fined out the overall pictures of investments of IBBL. To recommend actions that may be necessary to redesign the investments of IBBL. Islami Bank has discovered a new horizon in the field of banking area. Internet and various study selected reports.5 Methodology of the study: The study is performed based on the information extracted from different sources collected by using a specific methodology. During the study it was not possible to visit the whole area covered by the bank although the financial statements and other information regarding the study have been considered. 1. Newspapers and Journals.6 Limitations and restrictions of the report: From the beginning to end. Relevant books. Research papers. Lack of in-depth knowledge and analytical ability for writing such report. Lack of experience. Website.1. This report is analytical in nature. the study has been conducted with the intention of making it as a complete and truthful one. many problems appeared in the way of conducting the study. However. The time period for this study was short xiv . The study considers following limitations: All the concerned personnel of the bank have not been interviewed. The methodology is: Data collection: Source of data of this report can be divided into two categories: Secondary Sources: Annual Report of IBBL. Chapter-2 Profile of the Islami Bank Bangladesh LTD. xv . To avoid economic instability. its operations and activities shows that Islamic Bank as a Business firm with Halal transaction within the boundary of Islami Shariah . To eliminate socio-economic in-justice. Ziauddin Ahmed “Islamic Bank is essentially a normative concept and could be defined as conduct of banking in consonance with the ethos of the value system of Islam. “Islamic bank is a financial institution whose statutes. To avoid the production of harmful goods and services.” According to Dr.” Although Islamic Bank is a financial institution. According to Organization of Islamic Conference (OIC). To eliminate economic exploitation. To establish economic equality.The main objective is not only to earn profit but also to make welfare oriented interest free and exploitation free economy of a country. performs most standard banking service and investment activities on the basis of profit-loss sharing system conforming the principles of Islamic Shariah.2 Basic Objectives of Islamic Banks: The basic objectives of Islamic bank can be pointed out as follows: To conduct interest free banking systems according to Islamic Shariah. rules and procedures expressly state its commitment to the principles of Islamic Shariah and to the banning of the receipt and payment of interest on any of its operations. 2. It operates with the objectives to implement and materialize the economic and financial principles of Islam in the banking arena.1 Definition and Concept of Islamic Bank: Islamic Bank developed under Islamic frame work. xvi . To make investment through different modes permitted under Islamic Shariah.2. Bangladesh Association of Banks (BAB). The Institution of Bankers Bangladesh (IBB). To cover the fulfillment of the basic needs of the people. 2.4 Vision of IBBL Our vision is to always strive to achieve superior financial performance. To provide safety net for the weak. be considered a leading Islamic Bank by reputation and performance. poor and distressed.Bangladesh.3 Mission of IBBL To establish Islamic Banking through the introduction of a welfare oriented banking system and also ensure equity and justice in the field of all economic activities. To encourage Socio-economic uplift and financial services to the low-income community particularly in the rural areas. achieve balanced growth and equitable development through diversified investment operations particularly in the priority sectors and less developed areas of the country. To avoid evil. 2. Central Shariah Board for Islamic Banks of Bangladesh.5 Membership of different organization: Bangladesh Institution of Bank Management (BIBM). To realize the full potential of the economy.” 2. Bangladesh Foreign Exchange Dealers' Association (BAFEDA). International Chamber of Commerce. wrong and injurious practices from economic life. xvii . It operates its business activities free from interest.6 Present programs of the organization Islami Bank Bangladesh Ltd. Deposit Collection Investment General Banking Foreign Exchange Business 2. xviii .8 Function of IBBL To maintain all types of deposit accounts. To extend other banking service.7 Characteristics of Islami bank It is a financial Institution. To make investment.2. 2. To conduct Foreign Exchange Business. It is a business institution. To conduct social welfare activities through Islamic Banking Foundation. It leads all of its transaction according to Islamic law. It gives Zakat on its capital according to Islamic Shariah. It is run according to rules and regulation formed and amended by Shariah Council. It is profit-loss sharing business organization. It provide loan as Quard Hasana for social welfare. 2.9 Hierarchy Management of IBBL: Executive President Deputy Executive President Executive Vice President Senior Vice President Vice President Assistant Vice President Senior Principle Officer Principle Officer Senior Officer Officer Probationary Officer Assistant Officer Grade-i Assistant Officer Grade-ii Assistant Officer Grade-iii xix . 10 Hierarchy Management of IBBL: (Muhammadpur Krishi Market Branch) Vice President Assistant Vice President Senior Principle Officer Principle Officer Senior Officer Officer Probationary Officer Assistant Officer Grade-i Assistant Officer Grade-ii Assistant Officer Grade-iii xx .2. 265193Million Tk.277739million 247 55067 10068 26 12th August 1983 13th March 1983 30th March 1983 xxi . Dhaka) Formal Inauguration Share of Capital Local Shareholders Foreign Shareholders Authorized capital Paid-up Capital Deposit Investment Foreign Exchange Business Number of Branches Number of Shareholders Manpower Number of SME Centers (Source: www.36% Tk.7413.10 million Tk.11 Profile of the Bank Corporate Information: (As on 28st December 2010) Date of Incorporation Inauguration of 1st Branch (Local Office.000.64% 57.2.islmicbankbd.255178 million Tk.10.com) 42.00 million Tk. Chapter-3 Internship Position and Duties xxii . Cross Checking the Y-table of Telegraph Transfer(T. Had to provide different information about mudaraba Deposits.T). Foreign Exchange In charge.1 Description of Job I was assigned in the General Banking Section for the first two weeks. 3. Second officer of the branch. Manager and Vice President of the branch and other ranking officers in a number of activities. Balance Statement checking. I aided by General Banking In charge. xxiii . Making clear the clients about the difference between profit and interest. 3.T) In the Investment section I had to deal with the papers and documents needed to fill up to apply and sanction of an investment procedure of different companies. Debit and Credit Voucher Fill up. I had to mainly deal with the Web Based Cash collection in the Foreign Exchange Section.3.T) Issue cost memo of Telegraph Transfer (T.2 Specific Responsibilities of the job Provide detailed information to the clients about different Deposit Schemes.3 General Banking Activities Account opening. Issue cost memo of Telegraphic Transfer (T. after that on site supervisor transferred me to the Foreign Exchange Section for another two weeks and later in the Investment Section as an intern. KYC from fill up. Investment In charge. Handling transfer transaction. Web Based Cash: I had to mainly deal with the Web Based Cash collection. PIN Number his/her name. xxiv . Then he gives the 3 copies to me to make credit voucher where I had to write the beneficiary’s name. and signature. After that I had to input all the information of the beneficiary in the Web Based Remittance Register. The credit voucher also had to staple with a copy of the web money. address. the country name.4 Foreign Exchange Activities There is a section called foreign remittance section where customers collect foreign remittance. 1st had to credit the amount in the beneficiary’s account then again had to debit the money in the same account as the beneficiary is taking the cash instantly. Finally I had to check the Application form which filled up by the beneficiary and staple that with a copy of the web money and his/her photocopy of National ID card or Pass Port. The activities I had to do are as follows: When a customer comes to collect a Web Based Money at that time I had to collect a PIN Number and his/her name to download the money from internet. amount of the money very carefully. And I had to take signature of the beneficiary beside of the credit voucher. After that my onsite senior officer downloads the money information from website and printouts three copies of that to maintain other formalities. Then I had to provide an application form to the customer to write the remitter’s name. TT No. The client had to give a signature in his/her account column.3. I had to deal with two types of remittance: Spot Cash and Web Based Cash. cell phone number. It is compulsory to bring National ID card or Passport main copy and photocopy to collect the money and the beneficiary has to come by him/herself otherwise I was not bound to pay the money. date. Some popular modes of IBBL’s Investment are discussed below. Not only a bank. Cash memo. makes investments in different forms approved by the Islamic Shariah with the intention to earn a profit. the bank. operates its investment activities mainly through 3 (three) mechanisms: (Muhammadpur Krishi Market Branch) Bai Mechanism.6 Modes of Investment of IBBL. Agreement form. 3. Share Mechanism Hire Purchase Under shirkatul Melk xxv .3. Quotation. The papers and documents which I had to fill up for each company are as follows: Clients Application. Demand promissory note Delivery Letter. Muhammadpur Krishi Market Branch When money is deposited in the IBBL. Demand promissory note. but also an individual or organization can use Islamic modes of investment to earn profits for wealth maximization. Request Letter for an investment.5 Investment Activities In this section I had to mainly deal with the papers and documents needed to fill up to apply and sanction of an investment procedure of different companies. The Bank should have these documents against each investment of any company for future dealings. Authorization Letter. in turn. Islami Bank Bangladesh Ltd. Bai Mechanis m Share Mechanism Ijara Machanism Bai-Murabaha Bai-Muazzal Bai-Salam Istishna’a Quard Mudaraba Musharaka Hire Purchase under Shirkatul Meelk 3. to the buyer at an agreed fixed price payable at a certain fixed future date in lump sum or in fixed installments.7 Bai. The profit marked-up may be fixed in lump sum or in percentage of the cost price of the goods. Bai-Murabaha may be defined as a contract between a Buyer and a Seller under which the Seller sells certain specific goods permisIBBLe under Islamic Shariah and the Law of the land to the Buyer at a cost plus agreed profit payable in cash or on any fixed future date in lump sum or by installments.2 Bai-Muazzal (Deferred Sale) “Bai-Muazzal” means sale for which payment is made at a future fixed date or within a fixed period. The Bai-Muazzal may be defined as a contract between a buyer and a seller under which the seller sells certain specific goods. xxvi .7. 3.7. it is a sale on Credit.Modes: Under Bai-Modes of Islami Bank Bangladesh Ltd practiced different kinds of investment modes.1 Bai-Murabaha (Contract Sale on Profit) “Bai-Murabaha" means sale on agreed upon profit. In short. permisIBBLe under Shariah and law of the country. These are given below 3. The literal meaning of Quarde is giving “Fungible goods” for use without any extra value returing those goods. on the other hand. Here the buyer makes an advance payment.4 Quarde There are different types of quarde in IBBL. salt. Bai-Salam may be defined as a contract between a buyer and seller under which the seller sells in advance in the certain commodities and products IBBL under Islamic Shariah and the law of the land to the buyer at a agreed price payable on execution of the said contract and the commodities and products to the buyer at a future time in exchange of an advanced price fully paid on the spot. money etc. 3. In banking sector money is used as quarde.7. Fungible goods may be rice.3. but the delivery is delayed until sometime in the future. oil.3 Bai-Salam (Advance payment) “Bai-Salam” means advance sale and purchase. are the sole responsibility of the provider of the capital.1 Mudaraba (Investment made by the entrepreneur) The word “Mudaraba” means “travel” for undertaking business The term Mudaraba refers to a contract between two parties in which one party supplies capital to the other party for the purpose of engaging in a business activity with the understanding that any profits will be shared in a mutually agreed upon. these are bellow Quarde-e-Hasana Term Deposit Recite The word “Quarde” is an “Arabic word” which means loan or credit on advance.8. Quarde is Halal by Islam for not to pay any extra or interest in return. Losses.8 Share Modes: 3. Usually the seller is an individual or business and the buyer is the bank. It must follow the principal of equal foe equal return with homogeneous goods. Mudaraba is also known a Qirad and Muqaradah xxvii .7. 3. return. own the same jointly.2 Musharaka (Partnership based Investment) The word “Musharaka” is derived from the Arabic word “Sharikah” meaning partnership. xxviii . It is a hire agreement under which a certain asset is hired out by the Hire to a Hirer against fixed rent or rentals for a specified period.8. This is really the exchange value or consideration. the Hire and Hirer where the Hirer (lessee) enjoys or reaps a specific service or benefit against a specified consideration or rent from the asset owned by the Hire (lessor). 3. When two or more persons supply equity.9.9.1 Hire purchase Under Sirkatul Meelk Hire Purchase under Shirkatul Melk is a Special type of contract which has been developed through practice.3.9 Ijarah Modes 3. and share the benefit as per agreement and bear the loss in proportion to their respective equity.2 Shirkatul Meelk Shirkat means partnership. the contract is called Shirkatul Melk contract. it is a synthesis of three contracts: Shirkat jara Sale These may be defined as follows: 3. return. Thus the word “Musharaka” means a partnership established between two or more partners for purpose of a commercial venture participated both in the capital and management. purchase an asset.3Ijarah The term Ijarah has been derived from the Arabic words “Air” and “Ujrat” which means consideration. Ijarah has been defined as a contract between two parties.9. Actually. it involves different types of profit and loss sharing partnership. wages. Shirkatul Melk means share in ownership. rent of service of an asset. Thus. 3. wages or rent. own the same jointly.Thus Hire Purchase under Shirkatul Melk mode both the Bank and the Client supply equity in equal or unequal proportion for purchase of an asset like land. share the benefit as per agreement and bear the loss in proportion to their respective equity. building. Purchase the asset with that equity money. However.3. If the bank fails to meet depositors demand. But the process takes deep analysis. transports etc. each bank should take strong concentration on investment proposal. Because banks invest depositors fund. then it must collapse.4 Sale This is a sale contract between a buyer and a seller under which the ownership of certain goods or asset is transferred by seller to the buyer against agreed upon price paid / to be paid by the buyer. 3. Islami Bank Bangladesh Limited (IBBL) makes its investment decision through successfully passing the following crucial steps: xxix .10 Investment Processing of IBBL Generally a bank takes certain steps to deliver its proposed investment to the client. machinery. So.9. not banks’ own fund. 05.2000 30.01.1995 14. 09. 11. 06. SL No. 03.07.03.08.01. Islami Bank Bangladesh Limited applies eleven schemes for welfare activities.1991 31. 10. 05.3.08.10.1990 06.1999 18.1995 09.11.07. 07.1991 02.11.1995 21.1992 30. 08. 04.2010 xxx . 01.1994 24. Schemes Name Implemented Date Household Durable schemes-HDS Investment schemes for Doctors Small Business Investment schemes(SBIS) Agricultural Implements Investment schemes(AIIS) Housing Investment schemes-HIS Real Estate Investment Program-REIP Rural Development schemes-RDS Transport Investment schemes-TIS Car Investment scheme-CIS Mirpur Weavers Investment schemes-MSWIS Micro Industries Investment scheme-MIIS Palli Griha Nirman Beniyog Prakalpa-PGNBP 27. 12.11 Investment Scheme of IBBL Islami Bank Bangladesh Limited came into being to introduce a welfare oriented banking system and also to establish equity and justice in the field of economic operations based on the principal and guidelines of Islamic Shariah.12.1993 11. 02. Chapter-4 Analysis and Learning Points xxxi . production employment opportunities investment and strong economical structure bank is performing major role to meet up the demand of society.4. Web Based Remittance and Investment which will help me in my future job carrier. Investment Return collection. Profit distribution.1 Learning Points It was a great experience to have learnt some important banking. I could learn how to file the official documents accordingly and to keep track of those files. finance. This helped me understand the importance of file management system of Islami Bank Bangladesh Ltd. Foreign Remittance handling. I also experienced that reimbursement of the expense claims is done in a systematic manner. Spot Cash Payment are some very useful assignments I have been involved with during my internship program that help me learn a lot about different aspects of these areas. marketing functions that will help me in future. I have gathered a very good skill in handling Electronic Integrated Banking Software (EIBS). I have learned organizational behavior which will help me to expand my career. 4. It is entirely a new banking system which was adopted for a better change in socioeconomical condition and to make the banking function dynamic By the construction of capital. xxxii . I have also learned to maintain a good relation with the clients which will help me to develop my career.2 Analysis: On the basis of partnership business of profit and loss Islami Bank Bangladesh Limited was established in Bangladesh to operate banking activities avoiding interesting like other Muslim countries. 74 Source of Data: Muhammadpur krishi Market Branch (IBBL) xxxiii .3 million and in 2010 was increased tk88. from 2009-2010.4.2 Bai-Muazzal Year Bai-Muazzal 2009 21. Muhammadpur Krishi Market Branch.65 2010 35. Investment under Bai-Murabaha in 2009 was tk47.2. 4.1 Bai-Murabaha (General) Year BaiMurabaha(General) 2009 47.97 Source of Data: Muhammadpur krishi Market Branch (IBBL) Source of Data: Muhammadpur krishi Market Branch (IBBL) This Figure shows the upward trends for IBBL.3 2010 88.97 million.2. from 2009-2010.65 million and in 2010 was increased tk35. xxxiv . 4.33 Source of Data: Muhammadpur krishi Market Branch (IBBL) Source of Data: Muhammadpur krishi Market Branch (IBBL) This Figure shows the upward trends for IBBL. Investment under HPSM in 2009 was tk231.Source of Data: Muhammadpur krishi Market Branch (IBBL) This Figure shows the upward trends for IBBL.2.7 2010 284. Investment under Bai-Muazzal in 2009 was tk21. Muhammadpur Krishi Market Branch. from 2009-2010.74 million. Muhammadpur Krishi Market Branch.3 HPSM Year HPSM 2009 231.7 million and in 2010 was increased tk284.33 million. 13 million and in 2010 was increased tk22.55 2010 3.2.32 Source of Data: Muhammadpur krishi Market Branch (IBBL) xxxv .4 QTDR Year QTDR 2009 5. 4. Fixture& Library Year Furniture.2.75 Source of Data: Muhammadpur krishi Market Branch (IBBL) Source of Data: Muhammadpur krishi Market Branch (IBBL) This Figure shows the upward trends for IBBL. Muhammadpur Krishi Market Branch.13 2010 22.4.5 Furniture. from 2009-2010. Library 2009 Fixture& 3.75 million. Investment under Qtdr in 2009 was tk5. All activities are conducted on interest free system according to Islami shariah Investment is made though different modes as per Islami shariah. 4. Islami bank lacks efficient manpower.Source of Data: Muhammadpur krishi Market Branch (IBBL) This Figure shows the downward trends for IBBL. from 2009-2010. Some Investment deal is very much slow.32 million.55 million and in 2010 was increased tk3. Muhammadpur Krishi Market Branch. All employees are not expert of online banking system. Weaknesses.3 Strengths. Most of the employers and employees are not Business graduate/ Master. Lack of strong initially to explore investment opportunities through research and markets. Opportunities. Some of the employers try to violate Islami shariah when they deal with investment. Threats (SWOT) Analysis Strengths xxxvi . IBBL has achieved stable growth and continuous progress to be one of the leading private sectors Bank of the country. Extend socio economics and financial services to individuals of all economics backgrounds with strong commitment in rural uplift. Security in bank is not standard. Investment under Qtdr in 2009 was tk3. Concentration of remittance operation though a single location. Opportunities Threats Entering third generation banks to remittance business Unusual exchange rate offered by competitor. Motivated and experienced human resources. Opening branches at the major remittance receiving localities. Weaknesses Countrywide branch network. Lack of proper automation. Aggressive marketing by some banks. Enforcement of Anti Money Laundering Act. Operation of New Islamic Banks/ Branch New arrangement with some Exchange Houses. Increase in skilled/ semi-skilled expatriates in various countries. Floating and attractive Exchange Rate. xxxvii . SWIFT arrangements with major Banks. Non-offering special deposit & investment schemes for the expatriates. Shortage of manpower. Expatriates faith & inclination towards Islamic Banking. General support of beneficiaries towards IBBL. On-line banking facilities. Strong base of well-wishers. Wider network of arrangement. Insufficient logistic support. easy recovery of investment capital. efficient allocation of investment. lower inflationary xxxviii .1 Recommendations Though Islamic bank is comparatively superior to conventional interest based bank from various aspects like abolition of interest based loan market. stimulation for accelerating saving and capital formation.Chapter-5 Recommendation and Conclusion 5. no fixed cost of capital. production and profit. Another thing I have to mention here that the IBBL is going through the path in which they need to go and as like today it will bring more new and welfare oriented activities in the banking sector in the years to come. Insurance company pools large amount of money. Islami bank lacks efficient manpower. Islami bank has to fight for several obstacles in case of harmonious operation.situation. In our country Islami bank spreading very rapidly but still skilled manpower is not sufficient. That’s why Islami bank does not get the opportunity and help from the running law of government. Besides the conventional banks get these benefits from Bangladesh Bank that helps them to increase their wealth. I also think that there is bright future waiting for the Islami banking in Bangladesh. Islami banking and Islami economy must be included in the syllabus of schools and universities so that Islami educated people can have opportunity to get employed in Islami bank and the service of Islami bank can be better with the help of these skilled personnel. Here I have tried to locate some vivid hindrance and suggested accordingly. etc. which is mainly invested by bank. Any kind of bank Shariah based or interest based has to operate under regulatory environment prepared and approved by the government. Because insurance companies are not guided by Islami Shariah. So Islami Bank is not interested to get insurance from that companies that’s why it is necessary to establish Islami insurance policy.2 Conclusion: Islami banking system the collection of invested money is easier that the conventional banking because Islami bank concerns with the purpose of investment not with only the invested money. The special xxxix . And IBBL is in a position to go as a catalyst for this development in the banking sector in Bangladesh. Islami bank does not get benefit from insurance companies directly. Islami bank cannot accept securities & bonds from Bangladesh Bank because these securities & bonds are not well instructed by Islami Shariah. 5. There are conflicts between Islami Shariah and general Government rules and banking law. investment decreases and at the same time unemployment also increases. By concerning Islami Bank and its operations I come to the conclusion that the investment models of IBBL are more superior to the conventional bank. In conventional banking system. And IBBL is in a position to go as a catalyst for this development in the banking sector in Bangladesh. which is fixed. In Islami banking system investment is going on with profit-loss sharing system. In Islami banking system it is possible to create balance between money supply and the production of goods. investment does not ensure employment opportunity besides Islamic banking system directly work with unemployment problem. I also think that there is bright future waiting for the Islami banking in Bangladesh. Earning of the profit is not the only motives and objectives of the Islamic Bank’s investment policy rather emphasis is given in attaining social good and in creating employment opportunities. conventional banking system creates inflationary problem. In conventional banking system interest rate always fluctuates and events unrest in economy. In this system no fluctuation comes between growth of economy as well as growth of IBBL. Besides Islami bank always helps economic growth.feature of the investment policy of Islamic Banks is to invest on the basis of profit-loss sharing system in accordance with the tenets and principles of Islamic Shariah. In Islami banking system the collection of invested money is easier that the conventional banking because Islami bank concerns with the purpose of investment not with only the invested money. Another thing I have to mention here that the IBBL is going through the path in which they need to go and as like today it will bring more new and welfare oriented activities in the banking sector in the years to come. xl . On the other hand. In conventional banking system loan is granted on the basis of interest. At the time of increasing interest rate. at 6. Brushier Published by IBBL on its different invest schemes and activities. Retrieved December 22. Retrieved December 20. 2008-2009. Annual Report of.30 pm from http://www.00 pm from http://www.com/ Objectives.org Retrieved December 05. IBBLweb site (2006).islamibankbd. xli . Bangladesh Bank Website (2007). at 2. at 2.REFERENCES Web Sites: 1. 2010. at 6.bangladesh-bank.History. Introduction. IBBLweb site (2006). 4. 2010.islamibankbd.php 2. 2010.php 3. 2010. 2.php Reports: 1. IBBLweb site (2006).Aim and Objectives.30 pm.com/ introduction. Retrieved December 30. from www.00 pm from http://www.islamibankbd.com/ History.
Report "Internship Report Modes of Investment of Islami Bank Bangladesh Limited Mohammadpur Krishi Market Branch AssignmentBasket.com"