Overview of Banking Operations in Shahjalal Islami Bank Limited Essay

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0 Introduction: BBA is one of the most commendable professional degrees. The main objectives of BBA degreeis to provide the students with the prectical aspect of academic learning to the organizational setting. For the attainment of the purpose curriculum and syllabus is designed in a manner so that student are facilitated to have particular or empirical working experience to some extent. Inclusion of internship is a proof of one of the attempts. I am a student of Leading University, Sylhet.

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In BBA, my major subject is Accounting and Finance.For that consequence, I am performing my internship in banking sector and the organization is the SJIB in this regard. I selected the research topic as “ Overview of Banking Operations in Shahjalal Islamic Bank”. 1. 1 Objective of the study: • The difference between Islamic and Conventional banking system • Overview and analysis of SJIBL • Overview of the Islamic Banking industry in Bangladesh • Concept of Islamic Banking 1. 2 Source of Information: • Primary source : The primary source of information was gathered from the practical working experience during the internship period. Secondary information : The secondary information was gathered from Bank’s Annual Reports, Manuals, Guidelines and Internet etc.

1. 3 Scope of the study: This project has stipulated its analysis to the Islamic Banking system in Bangladesh only. Mainly SJIBL has been discussed here to understand the Islamic banking system. The study also covered the overall scenario of the Islamic Banking industry in Bangladesh and has also covered the differences between Islamic and Conventional banking system. 1. 4 Limitations of the study There are some limitations in my study.I faced some problems during the study which is mentioned below.

• Lack of time: The time period of this study is very short. I had only 5 weeks in my hand to complete this report, which was not enough. So I could not go in depth of the study.

Sometimes the officials were busy and were busy and were not able to give me much time. • Insufficient data: Some desired information could not be collected due to confidentially of business. • Lack of monitory support: Few officers sometime felt disturbed, as they were busy in their job. Sometime they didn’t want to supervise me out of their official work. Other limitation: As I am newcomer, there is a lack of previous experience in this concern. And many practical matters have been written from my own observation that may vary from person to person. 1. 5 Internship Experience at Shahjalal Islami Bank (SJIBL): I started my internship program at SJIBL on the 20th march, 2011.

Throughout the 3 months internship period I had great opportunity to have practical experience on banking services. I have worked in General Banking Department of Sylhet Branch of SJIBL. In this short span of time, I have learnt to learn about customer handling and enhance my knowledge on relationship banking.Here I have noticed that all the account officers and customer service representatives (CSRs), relationship managers (RMs) try to meet all of a customer’s needs to the extent permitted by rules and regulation of the organization and of the central bank. Relationship banking is an attempt to advance the sales culture in bank marketing beyond order taking to a more pro-active form of direct selling. Instead of selling financial services one at a time, an account officer or customer service representative attempts to gain an understanding of the consumer’s needs and offer services that fulfill those needs.I specifically worked at the General Banking department.

Following were the activities done by me during the internship program: • Filing: It is very important for the bank to archive files of the applicants according to their policies. I have maintained the files of the applicants and the existing customers as per SJIBL procedure and policies. The sequences were important for providing faster services to the customers in the future. • Posting: Data management of the new applicants are maintained in their database software. I have regularly posted these important data in their database for future reference.

I have also posted data for delivering cheque books of the customers. • Customer service: I have also handled customers who were there for general banking services. It was amazing to meet different types of customers walking in the branches in the bank. • Payment order: Have also helped the CSR and RM to issue pay order for the customers.

• Ledger: I have also learned to maintain the ledger (Hard Copy) for delivering cheque books, Pay order. • Clearing house: I used to cross check against the amount available in the customer account.This was a crucial task that assigned to me as that was the final procedure before sending the cheques to the clearing house. • Internship Report: During the internship period, I have also gathered a number of information for my report.

This required extensive interviews and data collection from the mid and higher management of SJIBL. • Handling and attending Customer Queries: Customers are the primary concern of any banking institution. So, greeting and ask them what we could do for them was a part of my responsibilities during my internship period.After greeting, then the next job was to lead them to the appropriate counter where they could get their desired services. The main idea of doing this was to bridge a smooth relationship between the customer and the service provider. • Account Opening: I have assisted customers to open accounts. The important details about opening an account I used to tell customers are given below: 1)Tell them to collect an account opening form from the bank 2)Helping to fill up all the requirements of the form 3)Inform them that nominee should be specified 4)Photograph of account holder as well as nominee is requiredFinally, the account holder sign of his/her own self in front or the specific bank principle officer in the account opening form.

2. 0 Definition Of Bank: Banks are among the most important financial institution in the economy. It is financial intermediaries that collect money from surplus-spending individual and institutions (whose current income exceeds their current expenditure and they have surplus funds to save and invest) and loan this fund to the deficit spending individuals and institution (whose expenditure on consumption and investment exceeds their current income and who therefore need to raise fund externally through borrowing).In fact, a modern bank performs such a verity of functions that it is difficult to give a precise and general definition of it. The various definition of bank have been given by many writers; among those some definitions are as follows, • According to Kinley, “A bank is an establishment which makes to individuals such advances of money as may be required and safely made, and to which individual entrust money when not required by them for use. ” • Bank is a financial intermediary accepting deposits and granting loans; offers the widest range of services of any financial institution and in return receives payments from them. The Negotiable Instruments Act, 1881 defines “Banker is a person transacting the business of accepting for the purpose of lending and investment of deposits of money from the public repayable on demand or otherwise withdrawable by cheque, draft order or otherwise. ” • Banks are financial institutions that perform a very important function in the economy.

We have across various kinds of banking functions in our everyday life. These functions may be an example of withdrawing of cash from one account, cashing a cheque, depositing money and many more. • In the words of R. R. Paul, “a bank is an institution which deals with money and credit.It accepts deposits from the public, makes the funds available to those who need them, and helps in the remittance of money from one place to another. 2.

1 Central Bank: (Bangladesh Bank) The central bank of a country is the most authoritative bank of all banks. This bank regulates, control, observes and super swigs the monetary and credit system of the country. It has the monopoly to issue currency notes. But in this context the government of Bangladesh issues and supplies 1 Tk. And 2 Tk. Notes only. It acts as the agent and also the banker to the government and commercial banks.It also acts as the custodian to the commercial banks, reserves and also to the government.

It performs the function of leader of last resort to the government as Ill as the commercial banks. Bangladesh Bank as the central bank of Bangladesh perform the following function and activities • Formulation and Implementation of Monetary Policy and Supervision of Banks and Financial Institutions operating in Bangladesh. • Issuance of notes and coins. • Custody of country’s Foreign Exchange Reserves.. • Lender of last resort to the Commercial Banks and act as an Official for short-term money market dealers. Other functions as per in the Bank Company Act 1991.

2. 2 Commercial Banks: Commercial Banks are continually developing and adapting to the changing economic and social environment in which they operate. It is therefore, important to be aware of the basic principles of commercial banking and its products and their operations. Commercial Banks attract their customers by offering interest on deposits and deploy the fund so collected in lending after maintaining a percentage of deposit as Statutory Liquidity Reserve (SLR) with the Bangladesh Bank, which changes from time to time as per decision of Bangladesh Bank. . 3 Types of Commercial Banks: There are many more types of banks but in general it can be easier to understand from the following figure: 2. 4 Islamic Banking: Islamic banking is described as a system of financial intermediation that avoids receipt and payment of interest in its transactions and its operations in accordance with the 2.

4 Islamic Banking: Islamic banking is described as a system of financial intermediation that avoids receipt and payment of interest in its transactions and its operations in accordancewith the objectives of an Islamic economy.Islamic banking is based on the Islamic legal concepts of shirkah (partnership) and mudarabah (profit-sharing). Many Muslim economists have contributed to its development. While Islamic banks engaged in and provide all other forms of conventional banking services, such as- safe keeping, transfers, letters of credit. But they have several distinguishing factors as given below- • Islamic banking financing arrangements are interest-free. • The public good is always taken into consideration for any request for financing. • Islamic banks scrutinize their investments more closely as they are liable for any losses incurred. Due to the profit sharing feature of Islamic banking, banks and entrepreneurs have a shared interest in the outcome of an investment which fosters economic development.

Given these distinguishing factors, there are 4 primary objectives of Islamic banking: • Islamic banks are expected to provide contemporary financial services in accordance with the laws set forth in the Shariah. • Islamic banks strive to be more development oriented as the profit sharing nature of Islamic banking system establishes a direct relationship between the bank’s return and the investment. Since all the business investment must be for the public good, Islamic banks are expected to allocate financing to those projects that will benefit society the most. • Islamic banks strive to ensure equitable distribution of income and resources to all parties to the transaction. • Alternatively, this is a banking system whose operation is based on Islamic principles of transactions of which profit and loss sharing (PLS) is a major feature, ensuring justice and equity in the economy.

The difference is in the avoidance (interest) from the banking practices.Instead a profit sharing mechanism is fostered to counter interest. 2. 5 Interest and Profit: The basic difference between interest and profits are highlighted below: |Riba |Profit | |When money is “charged”, its imposed positive and define result |When money is used in trading (for e. g.

) its uncertain result is | |is Riba |profit. |By definition, Riba is the premium paid by the borrower to the |By definition, profit is the difference between the value of production| |lender along with principal amount as a condition for the loan. |and the cost of production. | |Riba is prefixed, and hence there is no uncertainty on the part |Profit is post-determined, and hence its amount is not known until the | |of either the givers or the takers of loans. |activity is done. | |Riba cannot be negative, it can at best be very low or zero.

|Profit can be positive, zero or even negative. |From Islamic Shariah point of view, it is Haram. |From Islamic Shariah point of view, it is Halal. | Table 1: Interest versus Profit 3. 0 Shahjalal Islamic Bank Limited: Shahjalal Islami Bank Limited (SJIBL) commenced its commercial operation in accordance with principle of Islamic Shariah on the 10th May 2001 under the Bank Companies Act, 1991. During last eight years SJIBL has diversified its service coverage by opening new branches at different strategically important locations across the country offering various service products both investment & deposit.Islamic Banking, in essence, is not only interest free banking business, it carries deal wise business product thereby generating real income and thus boosting GDP of the economy. Board of Directors enjoys high credential in the business arena of the country, Management Team is strong and supportive equipped with excellent professional knowledge under leadership of a veteran Banker Mr.

Muhammad Ali. SJIBL desires to be the unique modern Islami 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. . 1 Shariah Council of Shahjalal Islami Bank Limited: Shariah Council of the Bank is playing a vital role in guiding and supervising the implementation and compliance of Islamic Shariah principles in all activities of the Bank. The Council, which enjoys a high status in the structure of the Bank, consists of prominent ulema, reputed banker, renowned lawyer and eminent economist. Members of the Shariah Council meet frequently and deliberate on different issues confronting the Bank on Shariah matters.They also conduct Shariah inspection of branches regularly so as to ensure that the Shariah principles are implemented and complied with meticulously by the branches of the Bank. 3.

2 Banking Software Used in Shahjalal Islami Bank Limited: Shahjalal Islami Bank Limited uses “PcBANK2000” Banking software for its banking operation. It is a well-developed customized software that has been capable to perform all banking functions within the law of ‘Islami Shariah’. 3.

3 Major Concepts of Islamic Banking: Mudarabah: Mudarabah” is a special kind of partnership where one partner gives money to another for investing it in a commercial enterprise. The investment comes from the first partner who is called “rabb-ul-mal”, while the management and work is an exclusive responsibility of the other, who is called Mudarib. The Mudarabah (Profit Sharing) is a contract, with one party providing 100 percent of the capital and the other party providing its specialist knowledge to invest the capital and manage the investment project. Profits generated are shared between the parties according to a pre-agreed ratio.Compared to Musharaka, in a Mudaraba only the lender of the money has to take losses. Musharakah: Musharakah (joint venture with capital)is an arrangement or agreement between two or morepartners, whereby each partner provides funds to be used in a venture. Profits made are shared between the partners according to the invested capital. In case of loss, each partner loses the capital in the same ratio.

If the Bank is providing capital, same conditions apply. It is this financial risk, according to the Shariah, that justifies the bank’s claim to part of the profit.All the partners may or may not participate in carrying out the business. The partner (s) who is/are also working, gets greater profit ratio as compared to the sleeping partner. The Difference between Musharaka and Madharaba is that, in Musharaka, each partner participates with some capital, whereas in Madharaba, there is a capital provider, ie.

a financial institution and an entrepreneur, who has zero financial participation. Note that Musharaka and Madharaba are commonly overlapping. Murabahah: This concept refers to the sale of goods at a price, which includes a profit margin agreed to by both parties.The purchase and selling price, other costs, and the profit margin must be clearly stated at the time of the sale agreement. The bank is compensated for the time value of its money in the form of the profit margin. This is a fixed-income loan for the purchase of a real asset (such as real estate or a vehicle), with a fixed rate of profit determined by the profit margin. The bank is not compensated for the time value of money outside of the contracted term (i.

e. , the bank cannot charge additional profit on late payments); however, the asset remains as a mortgage with the bank until the default is settled.This type of transaction is similar to rent-to-own arrangements for furniture or appliances that are common in North American stores. Bai muajjal (credit sale): Literally bai muajjal means a credit sale.

Technically, it is a financing technique adopted by Islamic banks that takes the form of murabaha muajjal. It is a contract in which the bank earns a profit margin on the purchase price and allows the buyer to pay the price of the commodity at a future date in a lump sum or in installments. It has to expressly mention cost of the commodity and the margin of profit is mutually agreed.The price fixed for the commodity in such a transaction can be the same as the spot price or higher or lower than the spot price. (Deferred payment sale) Bai salam: Bai salam means a contract in which advance payment is made for goods to be delivered later on.

The seller undertakes to supply some specific goods to the buyer at a future date in exchange of an advance price fully paid at the time of contract. It is necessary that the quality of the commodity intended to be purchased is fully specified leaving no ambiguity leading to dispute. The objects of this sale are goods and cannot be gold, silver, or currencies based on these metals.Barring this, Bai Salam covers almost everything that is capable of being definitely described as to quantity, quality, and workmanship. Wadiah (safekeeping): In Wadiah, a bank is deemed as a keeper and trustee of funds. A person deposits funds in the bank and the bank guarantees refund of the entire amount of the deposit, or any part of the outstanding amount, when the depositor demands it. The depositor, at the bank’s discretion, may be rewarded with Hibah (Gift) as a form of appreciation for the use of funds by the bank.

Ijarah: Ijarah means lease, rent or wage.Generally, Ijarah concept means selling the benefit of use or service for a fixed price or wage. Under this concept, the Bank makes available to the customer the use of service of assets / equipments such as plant, office automation, motor vehicle for aixed period and price.

Qard hassan/ Qardul hassan (good loan/benevolent loan): This is a loan extended on a goodwill basis, and the debtor is only required to repay the amount borrowed. However, the debtor may, at his or her discretion, pay an extra amount beyond the principal amount of the loan (without promising it) as a token of appreciation to the creditor.In the case that the debtor does not pay an extra amount to the creditor, this transaction is a true interest-free loan. Some Muslims consider this to be the only type of loan that does not violate the prohibition on riba, since it is the one type of loan that truly does not compensate the creditor for the time value of money. Sukuk (Islamic bonds:) Sukuk is the Arabic name for a financial certificate but can be seen as an Islamic equivalent of bond. However, fixed-income, interest-bearing bonds are not permissible in Islam.

Hence, Sukuk are securities that comply with the Islamic law (Shariah) and its investment principles, which prohibit the charging or paying of interest. Financial assets that comply with the Islamic law can be classified in accordance with their tradability and non-tradability in the secondary markets. 3. 4 Vision of SJBIL : • To be the unique modern Islami 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. 3.

5 Mission of SJBIL : • To provide quality services to the customer. To set high standards 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 principles. • To ensure human resource development to meet the challenges of the time 3. 6 Strategies of SJIBL • To strive for customers best satisfaction & earn their confidence. • To manage & operate the Bank in the most effective manner • To identify customers needs & monitor their perception towards meeting those requirement To review & updates policies, procedures & practices to enhance the ability to extend better services to the customers • To train & develop all employees & provide them adequate resources so that the customers needs are reasonably addressed. • To promote organizational efficiency by communicating company plans, polices & procedures openly to the employees in a timely fashion.

• To cultivate a congenial working environment. • To diversify portfolio both the retail & wholesale markets. 3. 7Motto of SJBIL: • Committed to Cordial Service. 3.

8 Corporate Information:Name of the Company: Shahjalal Islami Bank Limited Legal Form: A public limited company incorporated in Bangladesh on 1st April 2001 under the companies Act 1994 and listed in Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited. Commencement of Business: 10th May 2001 Head Office : Uday Sanz, Plot No. SE (A) 2/B Gulshan South Avenue, Gulshan – 1, Dhaka-1212. Telephone No. 88-02-8825457,8828142,8824736,8819385,8818737 Fax No.

88-02-8824009 Website www. shahjalalbank. com. bd E-mail: [email protected]

com. bd Chairman: Alhaj Mohammed Solaiman Managing Director: Md.Abdur Rahman Sarker Auditors: M/S. Syful Shamsul Alam & Co. Chartered Accountants Paramount Heights 65/2/1 Box Culvert Road (level-6) Purana Paltan, Dhaka-1000 Phone: 88-02-9555915, 9560332 Tax Advisor : M/S K. M Hasan & Co. Chartered Accountants 87, New Eskaton Road Dhaka. Phone: 88-02-9351457, 9351564 Legal Advisor : Hasan & Associates Chamber of Commerce Building (6th floor), 65-66 Motijheel C/A, Dhaka No.

of Branches: 63 No. of ATM Booth: 14 No. of SME Centers: 06 Off-Shore banking Unit: 01 No. of Employees: 1601 Stock Summary: Authorized Capital: Tk. 6,000 million Paid up Capital: Tk. 425. 12 million Face Value per Share: Tk.

10 3. 9 Shahjalal Islami Bank Limited (Sylhet branch): Shahjalal Islami Bank Limited, Sylhet Branch started its operation from May 12, 2002. This is the fourth branch that started its operation in Sylhet division. Like all other branches it is provide all banking services to its valuable clients with great care & sincerity under the law of ‘Islami Shariah’. In a less than two & half years’ time, its service quality & performance make it one of the leading branches in the bank.

The highlights of performance of this branch are given below: Highlighting Areas | Target(in crores) | Achieved(%) | |(1) Total Deposit | 90 | 100 | |(2) Total Investment | 35 | 90 | |(3) Operating Profit | 2. 90 | 100 | Table 3. 1: Performance in 2010 (in Crores) Source: Information collected from the Bank) [pic] Figure3.

1: Performance in 2010 (in Crores) (Source: Information collected from the Bank) 3. 10 Capital Market Services Division: Shahjalal Islami Bank commenced its Brokerage House operation in the year 2008 through a separate division named ‘Capital Market Service Division’ (CMSD). CMSD provides BO Account facility and margin facility to its customers to invest in the secondary markets. Diversified products with different category of investment ceiling and other value added services are also available for customers.The customers were also provided with assisted services facilities on the basis of published information and accounts.

The division managed portfolio value of more than 833 million under margin accounts. As a result, profitability of CMSD shown significant positive trend during 2008. Divisional contribution was 2. 2 1% percent to total operating profit before Provision and taxes of the Bank.

The Bank has established a well decorated and highly technology based trading facilities for the connivance of the customers. 4. 0 General Banking Functions of SJIBL:The general banking procedures are conducted under some sections. The functions of these sections are discussed briefly in the following: 4. 1 Account Opening Section: The main task of this section is to opening different accounts, such as, different savings account, joint accounts, clubs, societies etc. Opening of different types of current accounts,-Individual, Firms, Partnership Firms, proprietorship firms, private & public limited companies, executors, trustee, administrators, issuance of cheque books, maintenance of A/C opening register, preparation of different bill statements and clearing cheques received for collection. .

1. 1 Account Opening Process: Step 1: Receiving filled up application in bank’s prescribed form mentioning what type of account is desired to be opened. Step 2: • The form Is filled up by the application himself / her self. • The copies of passport size photograph from individuals are taken, in case of firms photography’s of sell partners are taken.

• Application must submit required documents. • Application must sign specimen signature sheet and mandate. • Introducer’s signature and accounts number verified by legal officers. Step3:Authorized Officers accepts the application. Step 4: Minimum balance is deposited only cash is accepted. Step 5: Account is opened and a cheque book and pay –in –slip book is given 4. 1.

2 Types of Deposit Services: Shahjalal Islami Bank Limited starts various attractive deposit schemes from the very beginning of its operation. The bank is always making its effort to introduce more new & attractive deposit schemes for its clients. Currently the following Deposit schemes are available in Shahjalal Islami Bank Limited. Mudaraba Savings Deposit (MSD):This deposit scheme is for those clients who are interested to save some money for their future benefits.

In addition, a great number of people open this account to deposit the foreign remittance. It is also very easy to maintain to get all other banking services. The basic requirements to open this account are: Requirements: The form should be filled correctly.

The client needs to provide 2 copies of passport size photograph, introducer’s signature, & nationality certificate/ passport copy/ id card to open this saving account. Minimum opening Deposit: Tk. 000 Profit rate: 4. 00 %(approx.

) Al-Wadia Current Deposit (ACD): Al-Wadia Current Deposit is suitable for businesspersons, shop owners, & persons doing small trade. The client of ACD can withdraw money more times than a client of savings deposit. The basic requirements to open this account Requirements are: The client needs to provide 2 copies of passport ize photograph, Trade License, TIN Certificate (if applicable). Minimum opening Deposit: Tk. 1000 Profit rate: No profit is given to maintain this account. Mudaraba Short Notice Deposit (MSND):This is also helpful for businesspersons who need frequent transaction in daily basis. The basic requirements to open this account are: Requirements: The client needs to provide 2 copies of passport size photograph, Trade License, TIN Certificate (if applicable). Minimum opening Deposit: Tk.

3000 Profit rate: 4. 00 % (approx. ) Mudaraba Term Deposit Receipt (MTDR ): • Duration: 3 Months ,Profit rate: 12% (approx. ) • Duration: 6 Months ,Profit rate: 12. 50 % (approx. ) • Duration: 12 Months ,Profit rate: 13. 00 % (approx. ) Monthly Income Scheme(MIS): Duration: 36 MonthsProfit: Per lac Tk.

900 will be given in each month as profit. Mudaraba Deposit Scheme(MDS): Duration: 5, 8 or 10 years. Profit rate: 12. 00 % (approx.

) Installment Amount per Month: Tk. 500, 1000, 2000, 5000, 25,000 or 50,000 Millionaire Scheme: Duration: 12, 15, 20 or 25 years. Profit: After the period, the amount will be approximately 1 Million. Installment Amount Per Month: Tk. 3,280 (For 12 years) Tk. 2,120 (For 15 years) Tk.

1,080 (For 20 years) Tk. 575 (For 25 years) Hajj Scheme: The account holder of this scheme have to deposit 3, 4, 5 or 6 lac taka all total in a single payment.Double Benefit Scheme: The amount will be double after 6 years. Triple Benefit Scheme: The amount will be triple after 9 & ? years. 4. 2 Cash Section: Opening of cash, maintenance of receives & payment register, cash remittance procedure between link & feeding branch, closing of cash, etc. Bangladesh banks instruction there of payment of defective notes, forged notes, vault limit, selling-buying of prize bond & record keeping.

4. 2. 1 Examination of Deposit Slips: The account holders will use the prescribed Deposit Slips supplied to them for depositing cash/cheques /drafts/pay-orders etc. n their Current Accounts/Savings Accounts etc.

The Cash Officer concerned shall carefully scrutinize the Deposit Slips to see that: They have been correctly and properly filled up or not. • Properly signed by the Depositor or not. • The title of the A/C, its number and Branch name is correct or not. • The amount in words and figures has been correctly written and agree with each other or not. 4. 2.

2 Cash Reicept: • Receiving Officer Counts the notes/coins and lists the amount/ denomination on the back of the Deposit Slips/credit voucher in order of denominations, starting form the highest.Simultaneously it shall also be ensured that no forged/demonetized/ defective notes are accepted. • Receiving Officer Computes the listing with the cash amount shown on the face of Deposit Slip. • If the amount does not tally, Receiving Officer recounts the cash and the listing. • If the amount still differs, Receiving Officer returns the cash to the depositor to recount and correct the amount in the Deposit Slip/credit voucher where necessary and duly authenticate the correction or use a fresh deposit slip. • Receiving officer place the cash in the cash drawer duly sorted according to denomination. After receiving the cash, receiving officer shall enter the particulars of the voucher in the Cash Receiving Book under progressive serial number.

He will put his signature affixing the date stamp both in the counter foil & Deposit Slip/voucher and he will pass on the same along with the Register to the Officer-in-Charge of Cash Department for his signature. • Officer-in-Charge of Cash Department detaches Deposit Slip from the counter foil and returns it along with the Register to Receiving Officer and retains the Deposit Slip/Credit Voucher. Officer-in-Charge will send the Deposit Slip to the Deposit Department and Credit Vouchers to the respective department to which it relates. Manager Operations Receiving Officer totals the amounts entered in the Cash Receiving Book at the close of business and he is agreed with the total of actual 4.

2. 3 Cash Payment: • Cheques, Demand Drafts, Pay Orders, and Pay Slips, mail Transfer Receipts, Telegraphic Transfer Receipts and Debit Cash Vouchers etc are received from the customers and various departments for encashment. The instrument is checked for any apparent discrepancy, posting and cancellation. • Specimen Signature of cancellation Officer should be made available with the paying officer. • Cash is counted and the denominations of notes are written on the reverse of the instrument.

• Signature of the bearer is obtained on the reverse of the instrument. Cash is paid to the bearer of the instrument. • Stamp is affixed on the face of the instrument and signed by the Paying Officer. • Particulars of the instrument are entered in Paying Cash Book. • Paid instruments are kept with the Paying Officer.

At the close of business, the amount entered in the Paying Cash Booked is totalled. • The total is agreed with the total amount paid. • The total is written in words and figures. • The Officer In-charge of Deposit section checks the entries and instruments to ascertain that the payment has been correctly made and releases the instrument from the Payment Register by his initial against each entry. • The Officer-in-Charge also checks and signs the book.

• After the cash is checked as explained herein before, the instruments are sent to the Deposits and Accounts Department as the case may be.Cheques are received by the Deposits In charge and other instruments by Account In charge. • Instruments returned unpaid by the various departments are received by Paying Cash Officer attached with memorandum duly entered in the Register. • The instrument is returned to the bearer of the instruments. 4.

2. 4 Balancing, Checking and Safe Custody of Cash: At the close of business when receiving and Paying Books are balanced, the cash Balance Book is written and agreed with the cash in hand. The book is checked and signed by the authorized Officer/Cash In charge. After Cash Balance Book is written, the Cash Position Memo is written in duplicate. The Memo is checked and signed by authorized Officer/Cash In charge. • When the Cash Balance Book is balanced, the authorized officer/Manager Operations is assigned for checking of cash is informed to check the cash. • The cash is counted by the Authorized Office/Manager Operations and verified with the entries of Cash Balance Book.

• The Cash Balance Book is checked with the closing figures of the preceding day of the Book and closing figures of Receiving and Paying Books. The entries of denomination of notes and coins in the Cash Balance Book is compared with the denominations of notes and coins counted and recorded on the face of cash denomination slip. • If found in order, the Authorized officer/ Manager Operations signs the Cash Balance Book, Receiving Book and Paying Book.

• The Cash Position Memo is checked and counter signed by the Checking Officer/Manager Operations. • In the presence of Cash Officer and the Manager Operations, who has counted the cash and signed the book, the Cash is kept in the safe. • The Cash Position Memo is sent to the Accounts Department.The signature of the recipient is obtained on the duplicate copy of the Memo and filed in the “Cash Position Memo File”. 4.

3 Remittance Section: Among different services rendered by a commercial Bank to its customers, remittance facilities are very important and popular to the customer. Remittance means sending of money from one place to another. Money order, telegraphic money order through telegraph/post office is the common method of sending fund. Bank also provides this facility to its customers by means of receiving money at one branch of the bank and arranging for payment in another branch with in/outside the country.

This facility is extended to its customers to enable them to avoid risk arising out if theft, loss etc. Carrying of cash money from one place to another place for making payments to some one. Some other places or to utilize themselves at some other places. A Remittance is an important service provided by banks to customers as well as non-customers.

Since it is not a free service it is a source of income for the bank. Parties involve in remittances Four parties involved in remittance: • Remitter • Remit tee • Issuing Bank/ Institution • Paying Bank 4. 3. 1 Remittances Department:One of the most frequently used banking services is the transfer of funds through the banking channels, being local or outstation. Transfer of funds entails high level of efficiency and security on part of the bank. It creates a legal obligation for the bank of debtor/creditors in case of DD and principle agent in case of TT. [pic]The remittances are of two types .

• Local Remittances • Foreign Remittances Bank offers following modes for Local Remittances: • Pay Order • Demand Draft • Tele-Phonic / Tele-Graphic Transfer • Mail Transfer • Travelers Cheques Payment Order:Payment Order is a negotiable instrument to transfer money to other banks within the station and is payable on demand. It is non-transferable instrument valid for three months, making it an order by one party to make payment in favor of another party. It is also known as Banker’s Cheque. The customer fills an application form for Pay Order in favor of a party and submits the amount in the cash department. It is competitively less risky. In case of cheques, the bearer might not get the desired amount for non-having sufficient funds available to him but the Pay Order is a secure way of having the desired amount.Demand Draft: Demand Draft is basically a bill of exchange, which orders to pay money on demand to a certain person specified on the instrument, or to the order, drawn by one bank to the branch of the same bank outside the station or on its corresponding banks.

Legally, the Negotiable Instrument Act governs the instrument. The following parties are involved: • Purchaser: The customer, one who’s request the DD is issued • Drawing / Applicant Bank: The bank, which issues the DD • Drawer Bank: The bank on which the issued DD is drawn • Payee: The person entitled to receive the paymentThe DD is valid for three (3) months i. e. 90 days of it being drawn. Tele-Phonic / Tele-Graphic Transfer: It is an encoded message between the bank of the beneficiary and the remitter. It is one of the quickest mode of transfer of money where by the funds are transferred through telex or cable from remitter / customer at one bank / branch to a payee in another city / country through an intermediary bank / branch.

It is neither transferable nor negotiable. In this case the customer is responsible for the instructions, being given, and the bank carries everything out.The payment instruments in a TT should be clearly specified and must contain the following information: • Payment of specified amount • Currency in which the payment is to be made • The bank I branch where the payee’s account is being held, including the payee’s name and account number • Value date for effecting the payment The message is reproduced and signed by two (2) officers. It is sending for test where coding and decoding figures related to day, month, amount, currency and city takes place.If the test is agreed then action on telex takes place. Mail Transfer: When money is not required immediately, MT can also make the remittances.

Here the sending office of the bank sends instructions in writing by mail to the payee bank for the payment of specified amount of money. Travelers Cheques: With the Rupee Travelers Cheques market growing rapidly, BAL is the latest entrant into the market. The bank was first to introduce TCs in 2 Lac and 5 Lac denominations, the highest ever face value for any Travelers Cheques available in the Pakistani market.In fact the TCs come in eight (8) denominations, which according to the bank will help clients conduct transaction at all levels and with complete security. These cheques have added security features, including the fact that they are printed on scan proof paper and carry the bank’s watermark and security thread with a 24/7 security and Tele-verification line. Bank also launched a reward program aimed at buyers of the TCs and will not be charging any commission on the purchase or encashment of the Cheques. 4. 3.

2 Foreign Remittances:Foreign remittances include remittances (incoming and outgoing) outside Pakistan. There are two (2) types of remittances i. e.

Inward Remittances & Outward Remittances: Inward Remittances: The term “Inward Remittances” means purchase of foreign currencies in whatever form and includes not only remittances by MT, TT, Draft etc. but also purchase of TC’s, Drafts under Traveler Letters of Credit, Bills of Exchange and Currency Notes etc. Outward Remittances: The term “Outward Remittances” means sale of foreign exchange in any form and include not only remittances by MT, TT, Draft etc. ut also sale of Travelers Cheques, Traveler Letters of Credit, Foreign Currency Notes etc. Types of Outward Remittances: • Foreign Tele-Graphic Transfer (FTT) • Foreign Demand Draft (FDD) • Foreign Outward Bill for Collection (FOBC) 4. 3. 3 Mode of Foreign Remittance Service : A remittance is money sent from one person to another in any form generally to another country.

The Bank provides this facility in various ways. Their remittance products are made keeping the customer’s requirements in mind. The customer can choose any mode of remittance depending on the time available for sending the remittance.

Given below is the list of the common remittance options: . |Mode of Remittance |Normal Time Taken | |Instant Transfer |Instantaneously | |Online remittance |1 to 5 days depending on the mode of online remittance | | |chosen. | |Speed remittance |Within 1 day | |SWIFT |1 to 3 days depending on the location of beneficiary | | |branch. |Draft / Cashier’s Cheque |7 days to 28 days | |International Money Order |7 days to 28 days | |Foreign Currency Cheque |7 days to 28 days | 4. 3. 4 Benefits of Bank Remittance Service: • Safe : Safety is one of the most important parts of the service in the Bank. Hence the possibility of fraud is nil. • Good Exchange Rate: The exchange rates offered by SBI are the best in the business.

• Convenient: Having a Savings Account in the bank ensures that the money is credited directly in your bank account without any problem. . 4 SJIBL VISA Card: 1) SJIBL VISA Debit Card: To a customer, “My card, my money” concept is used for Debit Card. Any accountholder 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 and having access account information through SMS, etc. round the clock.

) SJIBL VISA Prepaid Card (Local): SJIBL VISA Prepaid Local Cards are open to the customers even having no account with Shahjalal Islami Bank Limited. Cardholders can have 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) 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.Cardholders 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 worldwide at the entire VISA labeled merchant outlets, ATMs, etc. 4)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 use. Now, with one plastic card, the Cardholders can enjoy all the benefits and make transactions locally & globally from their Prepaid card account at the entire VISA labeled merchant outlets, ATMs, etc.

)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. 4. 5 Accounts Section: Preparation of daily statement of affairs, extract, transfer scrolling & supplementary, voucher preparation, monthly salary preparation, ATM card maintenance, condensed statement etc.

elated to IT department. And maintaining the balance of Bangladesh Bank account. 4. 6 Clearing Section: A customer can deposits money either cash or cheque.

If a customer wants make deposit money in SIBL,Sylhet branch by the other banks cheque then it is required to do some procedure which is done in the Bangladesh Bank clearing house. There are 42 member in Bangladesh,Sylhet Branch. SIBL branch is also member of it. 4. 6. 1 Inward Clearing: • The representing branch of the Bank receives the instruments from others Banks drown on the Bank in the Clearing House. The amount and number of instruments received are main schedules of respective Banks.

• The number/amount of instruments delivered, received and the difference of amount is written on Slip provided in the Clearing House. • The amount of each schedule received is entered in the House pages of the respective branches/Bank. • The respective House pages are totaled and the total of each is noted on a Slip and a grand total is taken out. • The grand total is agreed with the total of the House book/statement. • The instruments are sent to respective branches with the Slip showing total amount and number of instruments.

The instruments are sent to the branches concerned for clearance and branch wise IBDA is issued by the representative branch on the same day for the honored instruments. • The House Pages along with the duplicate schedules are filed. • Particulars of the instruments are compared with the schedule and the Slip and the schedules are detached. • The instruments are sent to the respective departments and the schedules are filed. • The main Schedule for each Bank is prepared and total amounts of the respective sub-main schedules are entered thereon. • The house page is prepared in duplicate, and total is balanced with that of the register. The dishonored instruments with schedules, house pages received from branches and the house book are sent to the Clearing House.

• The dishonored instruments are delivered to the respective banks. 4. 6. 2 Outward Clearing: • The instruments drawn on other banks are received duly entered in the Deposit Slip or voucher. • The instruments are checked and compared with the particulars noted in the Deposit Slip and its counterfoil. • In case an order instrument is being deposited in second payee’s account, endorsement is obtained from the second payee on the reverse of the instrument.

In case the payee’s name on the specially crossed instrument differs slightly from that of the depositor, the instrument may be accepted but only from the customers well known to the Bank and after obtaining an indemnity which shall be attached to the Deposit Slip. • Proper stamp(s) is/are affixed on the instruments and Deposit Slip and counterfoil. • The instrument is appropriately discharged / endorsed.

• The instrument along with the Deposit slip is sent to the in-charge for checking and signing. • The instruments are posted in the computer / Nikash Program developed by BB. The instrument and the Deposit Slip arc detached from counterfoil, which is handed over to the customer. • The particulars of the instrument and the voucher are entered in the Outward Clearing Register. • Serial number is given on each voucher. • The Register is balanced; the vouchers are separated from the instruments and released after lodgment to the respective departments against acknowledgement in the Register.

• The instruments are arranged Bank and Branch – wise. • The instruments with the schedules are sent to the branch representative to the clearing house. The instruments with schedules are received from the branches. • The instruments with schedules are re-arranged Bank-wise and Branch-wise. • The amounts of the instruments received from the branches are entered in the Outwards Clearing Register from the respective house pages. • The main Schedule for each bank is prepared and total amounts of the respective sub main Schedules are entered thereon. • The house page is prepared in duplicate, and the total is balanced with that of the register.

• The instruments with schedules, house pages received from branches are sent to the Clearing House. The instruments are delivered to the respective Banks. 4.

6. 3 Outward Bills for Collection (OBC): • Verification of instrument and deposit slip shall be completed. • Special crossing seal shall be given on the instrument.

• OBC seal shall be given on the instrument and the deposit slip marking the OBC number. • Endorsement shall be given on the back of the instrument dully signed by the authorized officer. • Details shall be entered in the OBC register.

• Instruments shall be attached with the forwarding schedule. • Authorized officer shall sign the OBC register. Forwarding schedule along with the instruments shall be handed over to dispatch department against acknowledgement on the office copy. 4. 6. 4 Inward Bills for Collection (IBC): • Instrument shall be checked with apparent tenor and tallied with the schedule.

• In case of cheque, Signature of the a/c holder shall be checked and verified. • IBC seal shall be marked on the instrument. • Details shall be entered in the IBC register. • An authorized officer shall sign the IBC register and instrument. • Voucher shall be posted in the system 4. 7 Investment Department :Mode of Investment Bai Mechanism In SJBIL: Bai means purchase and sale of goods in cash or on credit or in advance at an agreed upon profit, which may or may not be disclosed to the client. Majority of investments of Islamic banks are extended through this mechanism. A good number of investment products have been designed to facilitate mainly working capital financing which goes as follows: | | | | | | |4.

7. Bai-Murabaha: | | | | | |Murabaha LC(Sight/Deferred): | | | | | |Through this mode of indirect facility, the bank facilitates import of goods of the client at fixed rate of service charge (LC | | |commission) on invoice value.LC may be opened at 100% cash or at a different ratio. | | | | | |Murabaha Post Import TR : | | | | | |This is a post import finance under the principle of “Bai”, extended to retire Shipping Documents under LC opened.We buy the imported| | |goods and sell the same to the importer at a cost plus an agreed upon profit repayable today or on some date in the future in lumpsum | | |or by installments. Usually payment is made by lumpsum from the sale proceeds of the consignment. Possession of goods remains with the| | |client. Collateral security is usually obtained to secure the finance.

| | | | |Murabaha Post Import Pledge : | | | | | |As like as Murabaha Post Import TR with an exception to security. Goods remain under the control of the Bank. Collateral security may | | |or may not be obtained. | | | | | |4. 7.

Bai-Muajjal: | | | | | |Bai-Muajjal Commercial TR: | | | | | |It is an agreement between bank and client whereby bank delivers goods to the client upon deferred payment, i. . the client shall pay | | |the price at some future date at a time, by lumpsum or by installment. Under this mode of investment, bank is not supposed to disclose| | |cost price and profit separately. Goods are delivered on trust and Trust Receipt is obtained for legal implication. | | | | |Bai-Muajjal (Real Estate): | | | | | |Mode of operation and principle of this product are alike Bai-Mujjal Commercial TR. Difference is with the purpose, i.

e. the facility | | |is only extended against construction or purchase of building, apartment etc. | | | | |Bai-Muajjal (WES Bill): | | | | | |Investment facility under this Mode is extended to liquidate ABP liability at maturity, when the client can not liquidate the | | |liability as a result of non-repatriation of the related export proceeds. | | | | |Bai-Muajjal (Term): | | | | | |Under this mode of investment, term facility is given to meet client’s requirement, which is repaid by a specific repayment | | |schedule. Purpose is a bit different, such as to meet BG claim, etc.

| | | | | |4. 7. Bai-Salam: | | | | | |Bai-Salam (PC): | | | | | |This is export finance. Bai-Salam is a term used to define a sale in which the buyer makes advance payment, but the delivery is | | |delayed until some time in the future. Usually the seller is an individual or business and the buyer is the bank. | | | | |The Bai-Salam sales serve the interest of both parties: | | | | | |The seller- receives advance payment in exchange for the obligation to deliver the commodity at some later date.He benefits from the | | |salam sale buy locking in a price for his commodity, thereby allowing him to cover his financial needs whether they are personal | | |expenses, family expenses or business expenses.

| | |The purchaser benefits because he receives delivery of the commodity when it is needed to fulfill some other agreement, without | | |incurring storage costs. Second, a Bai-Salam sale is usually less expensive than a cash sale.Finally a Bai-Salam agreement allows the| | |purchase to lock in a price, thus protecting him price fluctuation | 4. 7.

4 Objective of Small and Medium Enterprise (SME) Investment Operation: The SME Sector has been declared by the Government as a priority sector. In our country, Small and Medium Enterprises (SMEs) play the pivotal role for employment generation, poverty alleviation and overall economic growth of the country. It has been observed that fund is the major constraint of this sector.Therefore, we need to inject more funds into this sector in a very planned manner to boost-up this sector for the sake of overall economic development of the country. Our country is labour abundant and SMEs are typically labour intensive.

So, the sector deserves more investment facility for smooth functioning of the existing enterprises and expansion of the same with a view to retain the workforce active as well as creating more employment opportunities. Further, investment in SMEs can be very effective in reducing poverty as well as ensuring long term economic growth.Shahjalal Islami Bank Limited (SJIBL) has undertaken initiatives for investment in SME sector by introducing a number of SME products in the market . 4. 7. 5 Small Business Investment Scheme Ceiling of Investment: | | | |The amount of investment shall be Tk 50,000/- to Tk 5,00,000/- (Taka fifty thousand to Taka five lac). | | | | | |Maximum ceiling of the investment will be Tk 3,00,000/- (Taka three lac) only for any region other than Dhaka & Chittagong | | |Metropoliton Area.However, investment may be extended beyond the ceiling at the discretion of the Management. | | | | | | | Rate of Profit/Rent: | | | |Rate of profit/rent is 15. 00% | | | | | |Risk Fund: | | | |Risk fund will be 1. 00% per annum. | 4. 7. 6 Household Durables Investment Scheme: Purpose:: | | | |Facilitate investment to purchase household durables to the different low & medium income honest businessman/professionals. | | | | | |Socio-economic improvement of the country through improvement of life style of the low & medium income people | | | |Mode of Investment : Hire Purchase under Shirkatul Meelk / Hire Purchase. | | | | | |Period of Investment : Maximum 05 (five) years. | | | | | |Client’s Equity : Minimum 25%. | | | | |Rate of profit: 16% | | |Service Charge: 1% | | |Risk Fund: 1% | | | | | | | | | | | |Repayment Procedure: Monthly Installment basis. | Ceiling of Investment: | | | |Maximum ceiling of the investment will be Tk 5. 00 lac per client. | | | | | |Size of the investment will be fixed as such the monthly installment against the investment would not exceed 25% of client’s monthly | | |salary/income. | 4. 7. 7 Car Purchase Investment Scheme : Ceiling of Investment: | | | |Maximum Tk. 40. 0 lac for brand new | | | | | |Maximum Tk. 30. 00 lac for reconditioned | Period: | | | |Maximum 5 years for brand new | | | | | |Maximum 4 years for reconditioned | Down payment: | | |Minimum 10 % for brand new | | | | | |Minimum 20 % for reconditioned | Profit Rate: | | | |Most competitive in the market | 4. 7. 8 Overseas Employment Investment Scheme Investment Amount: Maximum Tk. 3,00,000/- Period: Maximum 36 months with 02 (two) months moratorium period. Age: 18 years to 45 years Repayment Mode: Equal monthly installments. Profit Rate: 14. 00% per annum 4. 7. 9 Investment Scheme for Executives: Investment Amount: Maximum Tk. 10,00,000/- Period: Maximum 36 months.Age: 22 years to 60 years Repayment Mode: Equal monthly installments. Profit Rate: Most competitive within your reach. 4. 7. 10 Investment Scheme for Education: Investment Amount : | | | |In Bangladesh: Maximum Tk. 7,00,000/- | | | | | |In Abroad: Maximum Tk. 15,00,000/- | | | |Period: |Maximum 60 months. | | | | | | | | | | | | | | | |RepaymentMode: |Equal monthly installments. | | | | | | | |Profit Rate: |14. 00% per annum | 4. 7. 11 Investment Scheme for Marriage Investment Amount : Maximum Tk. 3,00,000/- Period: Maximum 48 months. Age : 25 years to 60 years.Repayment Mode : Equal monthly installments. Profit Rate: Most competitive within your reach. 4. 8 SWOT Analysis: After completing this study, I have find out some strengths, weaknesses, opportunities and threats of the internal and external environment of Shahjalal Islami Bank Limited. SWOT analysis means the analysis of strength, weakness, opportunity and threat of any organization. Among these four factors strengths and weaknesses are internal factors On the other hand; opportunities and threats are external factors. [pic] SWOT analysis of the Shahjalal Islami Bank Limited is as follows:- Strengths: • Services are served as first in first out basis. Experienced top management that’s why the officer always gets guidelines from the management when they face any difficulties. • Equal treatments given for all class of customer, even to them who are not clients of their bank. • This branch is not getting any commission for there some services. • Although it is providing this service to the people to serve the society. • It is in very suitable place. • It has very good reputation. • It is facilitating most of the modern banking. • Employees’ behavior towards Customer is very well. • Employees are getting sufficient salary. • Client loyalty is exceptionally high to this branch. • Working method of this branch is more improved. • Employees have a good personal relationship with customers. Southeast Bank is providing online banking facility to its customers. • All the branches are computerized. • Good corporate image in the banking sector. • All tasks are organized and divided to the employees individually. • It has a huge level deposit. • Most of employees are from good educational background. • It has some big organizations account and it keeps clients in safe. • It has good relation with other commercial banks including Bangladesh Bank. Weakness: • Some employees are not efficient because of lacking in the education, • Binding in rules and regulation. • Lack of communication in between management. • Service support product is not satisfactory, for example: Decoration. More up to date banking facilities are not available, such as, account checking by mobile. • For some service customer has to go two or more desks. • Some employees are traditional banker minded. • Some employees are not expert in handing computer. Opportunities: • Expanding brand image of the bank world wide by various advertisements. • Country wide network. • As Sylhet just started its journey as Metropolitan City that is why there is a huge opportunity of industrial advance. Threats: • Competitors are coming with full preparation so, competition is increasing day by day. • Lack of customer confidence. • Private bank are giving efficient modern service and they continuously innovating new product. Current law and order situation is not positive for the investment part. • Pessimistic representation to the government and Bangladesh Bank. • Some Banks offering more attractable rate on deposits than SJIBL in some cases. • Some foreign Banks are introducing many new, expensive and technological services for customers. • Many foreign banks are occupying markets by various attractive advertising and promotional activities. • Number of potential competitors both foreign and domestic private banks is increasing day by day. 5. 0 Summary of Overall Findings: • The clients think that process should be more easy. • Electricity and Internet have great effect on customer service. According to one client, desired behavior is not always available • Customer don’t like long documentation process. • The advertisements should not so informative. • They require a hotline customer care service. The existing customer care online consultant is not reachable at all times. They would prefer something like the Grameen Phone customer care call-center where they can call 24/7 for Customer care. • Customers want the outlet to be more presentable. • Provide no gift hampers to valued customers. • No weekend leaflets in magazines with information. 5. 1 Summary Of Findings From Survey: From my survey I find that customers of Shahjalal Islami Bank Limited is not fully satisfies with the services.From my analysis, it is realized that in competitive business world Shahjalal Islami Bank Limited is not 100% successful in case of customer satisfaction. 50 customers were surveyed as sample under the study to measure the satisfaction level of the customers of Shahjalal Islami Bank Limited (Sylhet Branch). The information of samples is as follows: Table 1: Sample‘s Frequency Distribution based on Gender |Sl. No. |Gender |Frequency |Percentage |Cumulative Percentage | |1. |Male |46 |92% |92% | |2. |Female |04 |8% |100% |Table 2: Sample‘s Frequency Distribution based on Age |Sl. No. |Age Group |Frequency |Percentage |Cumulative Percentage | |1. |18-25 Years |5 |10% |10% | |2. |26-33 Years |18 |36% |46% | |3. |34-50 Years |25 |50% |96% | |4. |51 & Above |2 |4% |100% | Table 3: Sample‘s Frequency Distribution based on Profession Sl. No. |Age Group |Frequency |Percentage |Cumulative Percentage | |1. |Business |37 |74% |74% | |2. |Service |9 |18% |92% | |3. |Student |1 |1% |94% | |4. |Housewife |3 |6% |100% | Here the gap among various clusters of the samples is wide. The reason behind this was convenient selection of samples.The survey was conducted in between 1st of May, 2011 to 3rd of June, 2011. So, the samples are selected only from those customers who came to the bank within the stated time period. Statement 1: When SJIBL promises to do something by a certain time, it does so. Explanation: The above statement denotes the degree of keeping promises by the bank with a certain period of time. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 4: Survey result of the statement 1 (Act according to Promises) | |Frequency |Percentage |Cumulative |Mean |Mode |Std.Div | |Degree of Perception | |of Frequency |Percentage | | | | |Strongly Disagree |0 |0% |0% | | | | |Disagree |0 |0% |0% | | | | |Neutral |8 |16% |16% |4. 34 |5 |. 745 | |Agree |17 |34% |50% | | | | |Strongly  Agree |25 |50% |100% | | | | Interpretation of the Result: From the above result it is seen that the mean value is4. 34. That means customers are satisfied with the performance against the promises made by SJIBL.The mode value (5) represents that most of the respondents are strongly agree with the above statement. So, on this point of fulfilling promises customers are seemed to be satisfied. Statement 2: When you have a problem, SJIBL shows a sincere interest in solving it. Explanation: The above statement refers to the degree of sincerity of the bank concerning the interest in solving the problems of customers. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 5: Survey result of the statement 2 (Sincere Interest in Problem Solving | |Frequency |Percentage |Cumulative |Mean |Mode |Std.Div | |Degree of Perception | |of Frequency |Percentage | | | | |Strongly Disagree |0 |0% |0% | | | | |Disagree |0 |0% |0% | | | | |Neutral |6 |12% |12% |4. 30 |4 |. 678 | |Agree |23 |46% |46% | | | | |Strongly  Agree |21 |42% |100% | | | | Interpretation of the Result: From the above result it is seen that the mean value is4. 30. That means customers are satisfied with the banks sincerity in solving their personal problem.The mode value (4) represents that most of the respondents are agree with the above statement. So, on this point of bank’s sincerity in problem solving the customers are seemed to be satisfied. Statement 3: SJIBL performs the service right at the first time. Explanation: The above statement means the degree of performing service correctly by the bank at the first time it performs for an individual. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 6: Survey result of the statement 3 (Performs the Service Right the First Time) | |Frequency |Percentage |Cumulative |Mean |Mode |Std.Div | |Degree of Perception | |of Frequency |Percentage | | | | |Strongly Disagree |0 |0% |0% | | | | |Disagree |3 |6% |6% | | | | |Neutral |7 |14% |20% |4. 20 |5 |. 904 | |Agree |17 |17% |54% | | | | |Strongly  Agree |23 |46% |100% | | | | Interpretation of the Result: From the above result it is seen that the mean value is4. 20. That means customers are satisfied and feel that the services performed by the bank for them are right at the first time.The mode value (5) represents that most of the respondents are strongly agree with the above statement. So, on this point of performing service right at the first time customers are seemed to be satisfied. Statement 4: You feel safe in your transactions with SJIBL. Explanation: The above statement means the degree of safety that the customer feels by maintaining account and transacting with the bank. Survey Result: The summary of the survey result of this statement is shown by the following table. Table 7: Survey result of the statement 4 (Customers Feel Safe in Transaction) | |Frequency |Percentage |Cumulative |Mean |Mode |Std.Div | |Degree of Perception | |of Frequency |Percentage | | | | |Strongly Disagree |0 |0% |0% | | | | |Disagree |0 |6% |0% | | | | |Neutral |1 |2% |2% |4. 54 |5 |. 542 | |Agree |21 |42% |44% | | | | |Strongly  Agree |28 |56% |100% | | | | Interpretation of the Result: From the above result it is seen that the mean value is4. 54 that means customers are well satisfied through maintaining transactions with the bank. The mode value (5) represents that most of the respondents are strongly agree with the above statement though the mean is indicating a lower value.So, on this point of customers feel safe in transactions with the bank the clients are appeared to be well satisfied. 6. 0 Recommendations: Improve Online Banking: It is very important that SJIBL improve their online banking to serve their customers better. The competitors are well ahead in the banking industry in Bangladesh. There are couples of local software companies that are expert in developing online facilities. SJIBL management should explore this opportunity for the betterment of the institution. Software: SJIBL management should invest further in developing the core banking software. This is the heart of any bank and should be updated regularly with new innovations.The higher management should keep this in their priority list. Islamic Legal Framework: Bangladesh Bank has recently issued a guideline regarding Islamic banking. However, there is a need of further research and development in developing the Islamic banking rules and regulations. Islamic banking is now considered to be a mainstream banking in Bangladesh and it is important that the rules and guidelines are as advanced as the conventional banking. The global Islamic funds market is currently valued at USD750 billion Bangladesh is also part of this trend. Therefore, it is very important that our central bank extensively work on the legal framework of Islamic banking.Increase Awareness: There is severe lack of knowledge regarding Islamic banking in Bangladesh. SJIBL can arrange various programs and promotions to enlighten the potential customers as well as their existing customers. Awareness can reduce the misconception of Islamic banking among the customers. Headcounts: From my experience, I have noticed that the bank is under employed. The numbers of representatives are much less compared to the customers walking in. The management of SJIBL should look into this and revised their management structure to improve the current scenario. Excess Liquidity: This issue is faced by all the Islamic banks in Bangladesh.Due to lack of availability of islamic money market in Bangladesh all islamic banks are loosing opportunity to invest further. The central bank should come up with plans to develop Islamic money market to take this industry to the next level. We can follow the model of Malaysia, Middle East countriesfor reference. Government Bonds: Currently Bangladesh bank has Islamic bonds but they are very unattractive in compared to conventional bonds. Central bank should design innovative and more profitable bonds for the islamc banks. They may sell longer-dated government sukuk, or Islamic bonds, to help alleviate a shortage of investments of the Islamic banks. 6. 1 Conclusion: With over 1. billion Muslims in the world, the global Islamic funds market is currently valued at USD750 billion and is expected to grow exponentially every year. Islamic banking system has tremendous potential and prospect in Bangladesh. The successful launching and operation of Islamic banks in Bangladesh has established the fact that banking without interest is feasible. Islamic banks have brought together many depositors and entrepreneurs under the coverage of banking. So far, these depositors and entrepreneurs so long avoided interest-based banking on the grounds of religious injunctions, and now have become clients of these banks. This represents an extension of the banking sector. Islamic banking is now a reality in Bangladesh.It is functioning efficiently, smoothly and satisfactorily despite facing various internal and external threats. The economics of the country may be geared towards Islamic Principles and Teachings in order to realize the full potential of Islamic banks in the long run. However, in the short run, the Islamic banks can take a number of concrete steps to facilitate the Islamic banking in Bangladesh. From the study it is obvious that there is a growing need for Islamic banking. The full-fledged Islamic banks are well positioned to cater to the needs of this market. Today, the market seems to be heading towards the mainstream banking. This will become a mass market, given the conservative culture oupled with recession-immune impacts of Islamic products. The study reveals that customers long for reliable, quality banking services which is found to be present among the Islamic banks of the country. SJIBL, during last eight years has diversified its service coverage by opening new branches at different strategically important locations across the country offering various service products both investment & deposit. They can be the unique modern Islamic Bank in Bangladesh with the strong commitment and vision of board of directors. They have the potential and strengths to do so. With fine tuning in their strategy, they can reach their vision and mission statement.If the stated recommendations are carried out and the government pays attention to the policy framework of the entire system, then that day would not be far when Bangladesh can proudly focus more on the Islamic banking system than the conventional banking system. 7. 0 Bibliography: • Ahmad, A. U. F. (2004, May). Islamic banking in Bangladesh: Legal and regulatory Issues. Paper presented at the Sixth Harvard University Forum on Islamic Finance, Cambridge, MA. • Ahmad, A. U. F. (2001). Problems of Islamic banking in Bangladesh. Paper presented to the Islamic Economics Research Bureau, Dhaka, Bangladesh. • Cha pra, M. U. 1982. “Money and banking in an Islamic economy,” p. 145- 176 in Monetary and Fiscal Economies of Islam, edited by M.Ariff (Jeddah: International Centrefor Research in Islamic Economics, King Abdul Aziz University). • Islami Bank An Era of Progress. 1995. Islami Bank Bangladesh Limited. • Khan, M. F. 1996. “Islamic futures markets as means for mobilizing resources for Development” Paper presented at the International Seminar on Mechanism and Development of Islamic Financial Instruments for Re source Mobilization in Dhaka, Bangladesh: August 10- 12. • Khan, M. S. 1986. “Islamic interest-free banking. ”Staff Papers, 33, pp. 1-27. (International Monetary Fund). Websites: http://www. bangladesh-bank. org http://www. shahjalalbank. com. bd http://www. siblbd. com http://www. wikipedia. org 7. 1 Abbreviations: SJIBL |Shahjalal Islami Bank Limited | |MSD |Mudaraba Savings Deposit | |ACD |Al-Wadia Current Deposit | |MSND |Mudaraba Short Notice Deposit | |MTDR |Mudaraba Term Deposit Receipt | |MIS |Monthly Income Scheme | |Br. Branch | |HHDS |Household Durable Scheme | |ID |Identification Card | |UK |United Kingdom | |USA |United State of America | |ATM |Automated Teller Machine | |UAE