INTRODUCTION

Bank is financial institutions which work as a intermediary/ middleman between savers and
investors. Shahjalal Islami bank limited is a commercial bank and its play a very important role
in our economy; in fact it is difficult imaging how our economic system would function
efficiently without the help of commercial bank. They are heart of our financial structure since
they have the ability, co-operation with the Bangladesh Bank to add to the money supply of the
nation and thus create additional purchasing power. These characteristics set commercial banks
apart from other financial institution. In addition to issuing deposits payable on demand they
accept time deposit. By lending and investing these resources and by transferring funds
throughout the nation and even between countries, they make possible a more complete
utilization of resources of the nation. Although banks create no new wealth, their lending.
Investing and related activities facilitate the economic process of production, distribution and
consumption. There are mainly three sections in SJIBL via General Banking Division,
Investment Division and Foreign Trade Division. These Divisions have small departments or
units under them.

Page 1 of 68

ORGANIZATION OVERVIEW
1.1 History
Shahjalal Islami Bank Limited (SJIBL), a Shariah based commercial bank in Bangladesh, was
incorporated as a public limited company on 1 st April, 2001 under Companies Act 1994.The
bank commenced commercial operation on 10th May, 2001 by opening its first branch i.e.
Dhaka Main Branch at 84, Dilkusha, Dhaka obtaining the license from Bangladesh Bank, the
Central Bank of Bangladesh. Its corporate head office is situated at 10, Dilkusha C/A, Jibon
Bima Bhaban, Dhaka-1000, Bangladesh. The bank opened two branches in 2001, six branches in
2002, two branches in 2003, two branches in 2004, and four branches in 2005, eleven branches
in 2006, 2007 and 2012. Total number of branches stood at 84 in 2012 and some more branches
are likely to open in important business locations of the country during 2012 subject to the
approval of Bangladesh Bank.
SJIBL offers a full range of banking services for the personal and corporate customers, covering
all segment of society within the framework of Banking Company Act 1994 as well as rules and
regulations laid down by central bank. Diversification of products and services include corporate
banking, retail banking and consumer banking right from industry to agriculture, real estate to
software and is backed by the latest technology.
The bank is being managed by a group of highly experienced professionals with diversified
experience in finance and banking. The bank has already achieved tremendous progress in only
five years. The bank has already ranked as one of the quality service providers and is known for
its reputation.
1.2 Vision of SJIBL
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.
1.3 Mission of SJIBL
To provide quality services to customers.

To set high standard of integrity.

To make quality investment.

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To ensure sustainable growth in business.

To ensure maximization of shareholders equity.

To extend our customers innovative services acquiring state-of-the-art technology blended

Islamic principles.

To ensure human resource development to meet the challenges of time.

1.4 Strategies of SJIBL

To strive for customers best satisfaction & earn their confidence.

To manage and operate the bank in the most effective manner.

To identify customers needs and monitor their perception towards meeting those needs.

To review and update policies, procedures and practices to enhance the ability to extend
better services to the customer.

To train and develop all employees and provide them adequate resource so that the customer
needs are reasonably addressed.

To promote organizational efficiency by communicating company plan, policies and

procedures openly to the employees in a time fashion

To cultivate a congenial working environment.

To diversify portfolio both the retail and wholesale market.

1.5 Nature of business

Shahjalal Islami Bank Limited offers services for all banking needs of the customers, which
include deposits, making loans & advances, discounting bills, conducting money transfer and
foreign Trade transactions and performing other related services such as safe keeping,
collections, issuing guarantees, acceptances and letters of credit.

Page 3 of 68

1.6 Nature and Legal status of SJIBL

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
10th May 2001
of Business
Registered
Office

Jiban Bima Bhaban

Front Block (4th Floor)
10, Dilkusha Commercial Area
Dhaka-1000.

Telephone No.

88-02-9570812, 7160591

Fax No.

88-02-9570809, 9553562

Website

www.shahjalalbank.com.bd

SWIFT

SJBL BD DH

E-mail

sblho@shahjalalbank.com.bd

Chairman

Mr. A.K. Azad

Managing
Director

Md. Abdur Rahman Sarker

Auditors

Tax Advisor

M/S. Hoda Vasi Chowdhury & Co.

Chartered Accountants
Ispahani Bhaban
14-15 Motijheel C/A
Dhaka-1000
Phone: 88-02-9555915, 9560332
M/S K.M Hasan & Co.
Chartered Accountants
87, New Eskaton Road
Dhaka.
Phone: 88-02-9351457, 9351564
Page 4 of 68

Legal Advisor

Hasan & Associates

Chamber of Commerce Building
(6th floor), 65-66 Motijheel C/A, Dhaka

No. of Branches 84
No. of ATM
Booth

34

No. of SME
Centers

06

Off-Shore
banking Unit

01

No. of
Employees

1811

Stock Summary:
Authorized
Capital

Tk. 6,000 million

Paid up Capital

Tk. 5566 million

Face Value per

Share

Tk. 10

1.7 Objectives of SJIBL

Twenty first century opened the predictable door of globalization. The whole world is being
changed with a modern, extensive & technological revolution. Life style & status are widely
changing to have an artistic, delightful & flourishing environment. Demand and attitude of the
whole mankind escalating with time revolution. Everyone has a vision of such a life and status.
To fulfill such a vision, it needs possessions, prosperity, fortune, prudent deposit and consistent
investments. Unfortunately, the Banks did a few to be a prosperous, service oriented, technology
based banking. Shahjalal Islami Bank Limited is committed to fulfill the requirements of the
mass people. Shahjalal Islami Bank Limited is patterned of Islamic norms & ethics with
modern technology to achieve the goal in the new era. Humanitarian perfection, Economic

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progress, Assistance & service to the mass people are the basic objectives of Shahjalal Islami
Bank Limited.

ORGANIZATION STRUCTURE
There are different wings to consist the organizational structure of SJIBL. There are
Board of Directors
Board Committees
Executive Committees
Policy Committees
Management Team
2.1 Board of Directors
There is a board of Directors of 13 members in the bank. The board of Directors is the apex body
of the bank. It appears like this-

Chairmen
Vice-Chairmen
Directors
Managing Directors
Secretary

Page 6 of 68

2.2 Name of the Board of Director

Mr. A.K. Azad

Chairman

Alhaj Syed Nurul Arefeen

Mr. Mohammed Faruque

Vice Chairman

Vice Chairman

Mr. Sajjatuz Jumma

Mr. Anwer Hossain Khan

Mr. Tofazzal Hossain

Page 7 of 68

Founder Chairman & Director

Former Chairman & Director

Director

Mr. Md. Sanaullah Shahid

Mr. Shams Uddin Khan

Mr. Md. Farooq

Director

Director

Director

Mr. Mohammed Hasan

Mr. Md. Abdul Barek

Mr. Mohammed Solaiman

Director

Director

Former Chairman & Director

Mr. Abdul Halim

Mr. Mohiuddin Ahmed

Mr. Akkas Uddin Mollah

Director

Director

Former Chairman & Director

Page 8 of 68

Mr. Khondoker Shakib A hmed

Mr. Engineer Md. Towhidur Rahman

Mr. Mohammed Younus

Director

Former Chairman & Director

Director

Mrs. Farida Parvin Nuru

Mr. Mosharraf Hossain

Mr. Md. Abdur Rahman Sarker,

Independent Director

Independent Director

Managing Director

2.3 Executive Committee

01.

02.

03.

Mr. Mohammed Younus

Mr. Md. Sanaullah Shahid

Mr. Sajjatuz Jumma

Chairman

Vice Chairman

Member

04.

05.

06.

Mr. Anwer Hossain Khan

Mr. Mohammed Hasan

Mr. Mohammed Solaiman

Member

Member

Member

07.

08.

Mr. Mohiuddin Ahmed

Mr. Md. Abdur Rahman

Sarker

Member

Managing Director & Ex-Officio

member

Page 9 of 68

2.4 Management hierarchy

Page 10 of 68

2.5 Management Team

Managing Directors

Executive vice-president

Vice-president
ice-president
ice-president
Sr. Asst. vice-president

Asst. vice-president

Page 11 of 68

BANKING SYSTEM
3.1 Deposit scheme
Deposit is the life-blood of a bank. Bank has given utmost importance in mobilization of
deposits introducing a few popular and innovative schemes. The mobilized deposits were
ploughed back in economic activities through profitable and safe investment.
This type of deposit schemes of SJIBL are:

Mudaraba Monthly Income Scheme

Mudaraba Double/Triple Benefit Scheme

Mudaraba Monthly Deposit Scheme

Mudaraba Millionaire Scheme

Mudaraba Hajj Scheme

Mudaraba Housing Deposit Scheme

Mudaraba Cash Waqf Scheme

Other than these deposits schemes SJIBL also operate some traditional deposit schemes these
are:

Al-Wadia Current Deposit

Mudaraba Saving Deposit

Mudaraba Short Notice Deposit

Mudaraba Term Deposit

Mudaraba Scheme Deposit

The total deposit of SJIBL stood at TK. 71483.68 million as on 31Decembre, 2012 as against
TK.52618.19 million of 31 December, 2011, registering increase of TK. 23866.05 million and
growth rate is 38.00%. The deposit mix of the bank as on 31 December, 2012 is as bellow:
Sl. No.

Nature of Deposit

Taka in Million

1
2
3
4
5

Al-Wadia Current Deposit

Mudaraba Saving Deposit
Mudaraba Short Notice Deposit
Mudaraba Term Deposit
Mudaraba Scheme Deposit

3,266
4,863.52
1765.11
41,190.16
13,426.65

% of Total
Deposit
5
9
4
48
24
Page 12 of 68

Other Deposits
Total

5,972.24
71483.68

10
100.00%

Table: Deposit Mix Of 2012

Fig: Deposit Mix Of 2012

3.2 Investment Schemes
Total investment of the bank stood at TK. 63628.77 million as on 31 December, 2012 as against
TK. 48616.61 million of 31 December, 2011 registering an increase of TK. 31302.16 million and
growth rate is 37.37%. Mode wise investment portfolio of SJBL as on 31 December, 2012 is
given below:
SL.No Modes of Investment
1
2
3
4
5
6
7
8

Taka in
million
14,353.61
26,224.94
10,463.44
206.13
6,721.76
1057.61

Murabaha
Bi-muajjal
Hire-purchase & Ijara
Investment against L/C
Bill purchase & discounted
Investment against scheme
deposits
Quard
268.33
Others
4,322.95
Total
63,628.77
Table: Investment Portfolio Of 2009

Percentage of
Total Investment
21%
42%
15%
1%
9%
3%
2%
7%
100.00%

Page 13 of 68

Fig: Investment Portfolio Of 2009

3.3 Services
Shahjalal Islami Bank Limited is an industry standard, Islami Shariah and latest technology
based modern bank. The bank is equipped with state-of-the-art technology and committed to
provide technology based modern banking to its valuable customers. Services provided by SJIBL
are:
3.4 Online Banking
To provide better services to the valued customers using the latest technology and electronic
media competing with other private banks to set the establish full automated, on-line, centralize
banking systems interfacing with all delivery channels link, like ATM (Automated Teller
Machine), POS (Point of Sale-Fund Transfer Machine for purchasing at any shop/service
center.), any branch banking, home banking, tele-banking, internet banking etc. Online banking
or any branch banking is a system where transactions, queries and statements of any client of a
certain branch may be carried out from another branch of the bank
3.5 SJIBL VISA Card
Card is considered as a new dimension of product resulting from technological development in
the banking arena. In line with our affiliation with VISA International for VISA ATMs and POS,
the following two products are launched broadening service product of the bank to the clients:
i.

VISA Electron (SJIBL VISA Debit Card Local)

ii.

VISA Prepaid (SJIBL VISA Prepaid Card Local and International)

The important features of SJIBL VISA Card are given below:

Sense of satisfaction of having an international brand.

Any where any time banking.

Page 14 of 68

24 hours and 7 days a week banking.

Directly linked with cardholders account.

Convenient cash withdrawal at ATMs.

Acceptability at huge number of Q-cash ATMs around Bangladesh.

Accepted at all VISA terminals locally and globally.

Local and international transaction with the same card (for duel card).

Balance Inquiry.

Mini statement.

PIN change.

Shopping at a large number of Q-cash POS terminals around Bangladesh.

Payment of utility bill.

Avoid pressure of at counter of bank.

Minimizing risk of carrying cash.

3.6 SMS / Pull Push Service

This is a service provided by the bank through mobile phone. This new technology based service
will helps the bank to attract new customer base. Through SMS or Pull Push service client will
be facilitated with cell phone based banking service. This SMS service will help the bank to
enhance and extend customer service levels on a collaborative basis and reduce teller queues.
3.7 SWIFT
Society for Worldwide Inter-Bank Financial Telecommunication (SWIFT) is a bank owned cooperative serving the financial community worldwide. The SWIFT Transport Network (STN) is
a dedicated global network for secure communication between SWIFT Customers. SWIFT
supports the financial data communication and processing needs of financial institutions, through
a range of financial messaging services and value-added processing, as well as, access through
the STN and interface and application software. In short SWIFT is a pioneer in the automation of
the global financial industries. Shahjalal Islami Bank Limited has introduced this SWIFT alliance
entry system firstly in October 2002 and introduced SWIFT alliance access in October 2003.

Page 15 of 68

BANK CAPITAL
4.1 Equity
Authorized capital -------------------------------------Tk.6,000 million
Paid-up Capital

--------------------------------------Tk.5566 million (as on 31.12.2012)

Total equity was----------------------------------------Tk.8673 million (as on 31.12.2011)

Total equity was ---------------------------------------Tk.10566 million (as on 31.12.2012)
SL. No.

Comparative position of equity for the year 2012 & 2011 is given below:
Particulars
2012
2011

Paid-up capital

6000

5566

Statutory reserve

2,082

1023.55

Retained earnings

1053

935.91

General Provision

1028

863.48

Exchange Equalization

0.34

0.94

Assets Revaluation Reserve

402.66

283.12

10566

8673

Total Equity
4.2 Capital Adequacy

Page 16 of 68

Total equity of the Bank as on 31.12.2011was Tk. 8673 million and the total equity stood at Tk.
10566 million on 31.12.2012, which was13.98% of the Risk weighted Assets as against the
requirement of 10.00%.
The core capital was 12.04% of Risk weighted Assets as on 31 st December 2012 as against
requirement of 5%.

BANKING SYSTEM TECHNOLOGY

5.1 Branch Network
The bank has been operating with a network of 84 branches all over the country. In the year 2012
the bank has opened 29 new branches. Among these 7 is in Dhaka and rest of the Braches are in
Rajshahi, Khulna and Chittagong. Here shows zone wise branch distribution of SJIBL:
Table: Zone-wise number of Branches
OFFICE / ZONES

NUMBER

Dhaka

39

Chittagong
Sylhet
Khulna

20
9
5

Rajshahi

Barisal

Total

84

Fig: Number of Branches

5.2 Human Resources Development
SJIBLs policy on human resources management is proactive. SJBL believes that investment in
human resource development is the key to maintaining sound health of the bank. The employees
of the bank attend training program/ seminar, workshop both in home and abroad. The training
center of the bank has been arranging various courses, workshop and seminars on important
aspect of banking. This bank invites experts of banking sector for imparting training to its
Page 17 of 68

employees to meet the above challenges. To keep the employees motivated, incentives,
performance award, promotion and accelerated promotion are given on a regular basis.

5.3 Information Technology

Main objective of the bank is to take care of different economic group of the society and meet
their all type of banking requirements stretching its service to the door step of the people with the
help of information technology gradually. SJBL is providing customer service through online
facilities. SJIBLs ultimate aim is to enable its respected and valued clients to shop under the
same roof. In line with that JBL VISA DEBIT CARD, SMS/push pull services have already been
introduced. Besides clients are also being facilitated by the service of REUTERS, SWIFT,
Western Union Money Transfer etc.
5.4 Operational Performance of SJIBL
During 2012 the bank through its 58branches mobilized deposit of Tk.36484 million and
deployed Tk.5,939.90 million in investment. Total income of the bank was Tk.7,117.14 million
and total expenditure stood at Tk. 5,075.88 million, resulting in operating profit of Tk.2,041.16
million. The Bank handled total Foreign exchange business of Tk.79,450.24 million in the year
2012.
Total operating performance at a glanceParticulars

Amount (in million)

Total Deposit

36,484

Total Investment

5,939.90

Total Income

7,117.14

Total Expenditure

5,075.88

Total Operating Profit

2,041.16

Total Foreign Exchange Business

79,450.24

HIGHLIGHTS OF PERFORMANCE
Amount in Taka
SL #

1.

PARTICULARS
Paid up Capital

2.

Total Capital ( Core + Supplementary)

2012
4,245,980,00
0
8,069,092,33
5

2011
2,871,650,000
6,040,882,802

Page 18 of 68

3.

Capital Surplus

2,
122,702,335
85,216,968,6
53
66,484,239,9
93
62,918,773,6
68
20,771,113,5
00
92.62%

2,189,432,802

4.

Total Assets

5.

Total Deposit

0.94%

0.44%

10.

Percentage of Classified Investment

against total Investments
Profit after Tax and Provision

1217,709,533

1246,992,691

11.

Amount of Classified Investment

143,243,000

248,246,000

12.

48,009,403

43,009,403

13.

Provisions kept against classified

Investment
Provisions surplus

40,801,366

20,723,827

14.

Cost of Fund

11.07%

10.99%

15.

Profit Earning Assets

45,303,841,268

16.

Non-Profit Earning Assets

17.
18.

Return on Investment in Securities

(ROI)
Return on Assets (ROA)

49,889,424,6
92
9,327,543,96
1
11.74%
2.08%

2.22%

19.

Income from Investment in Securities

292,717,942

157,974,405

20.

39.07

29.84

21.

Earnings Per Share (2008: Basic EPS,

2007: Adjusted EPS)
Net Income Per Share

39.07

29.84

22.

Price Earnings Ratio (Times)

9.79

8.55

6.
7.
8.
9.

Total Investment (Loans & Advance)

Total Contingent Liabilities and
Commitment
Investment Deposit Ratio ( % )

48,346,996,395
42,618,187,303
40,616,605,335
12,402,844,932
96.03%

6,043,155,127
16.84%

Page 19 of 68

INCOME INVESTMENT
6.1 Income
Total income of SJIBL mainly derives from two important sources; investment income and noninvestment income.
Investment Income: Total investment income of the Bank as at 31st December 20012
was Tk.5,939.90 million as against Tk.4,428.89 million of the preceding year registering
34.12% growth over last year, which was 83.46% of the total income against 83.80% of
2011
Non-Investment Income: Total Non-Investment income of the Bank as at 31st December
2012 was Tk.1,177.14 million as against Tk.856.49 million of the preceding year
registering 37.44% growth over last year, which was 16.54% of the total income
compared to 16.20% of 2011.
6.2 Expenditure
Total expenditure of SJIBL mainly derived from two important sources; profit paid on deposit
and operating expense.
Profit Paid on Deposits:

Bank distributed profit of Tk.4,200.28 million among the

Mudaraba Depositors in the year 2012against Tk. 2,962.40 million of the year 2011 which
being 70.71% of the Investment income earned from deployment fund of which was 66.89%
in 2011. Deposit expenses were 82.75% of total Expenditure in 2012 as against 85.23% of
2011.
Operating Expenses: Total operating expenses as on 31.12.2012 was Tk.875.60 million as
against Tk.513.19 million of 2011, which was 17.25% of the total Expenditure of the year
2012 against 14.77% of 2011.
Page 20 of 68

6.3 Operating Profit

During the year 2012, the Bank earned an amount of Tk. 7,117.04 million and spent an amount
of Tk. 5,075.88 million, resulting a total Operating profit of Tk. 2,041.16 million which
increased by Tk.231.36 million i.e. 12.78% over 2011. From the operating profit Tk.205.00
million kept as provision for investment, Tk. 40.00 million provision kept for Off-balance sheets,
Tk. 1.00 million provision was kept for other assets and then profit before tax stood at Tk.
1,795.16 million and deducting income taxes of Tk. 724.60 million. Net Profit after taxation
stood at Tk. 1,070.56 million, net profit of 2012 increased by Tk.252.86 million, i.e. 30.92%
from Tk.817.71 million of 2011. As appropriation of net profit Tk. 359.03 million transferred to
statutory reserve as per Bank Company Act. 1991 and Remaining Tk. 711.53 million transfer to
retained earnings.
A summary of operating result of the bank as on December 2012 vis--vis the position of
December 2011 is shown below:
Particulars
Total Income
Less: Total Expenditure
Net profit before provision & Taxation
Less: Provision for investment, off Balance Sheets

2012
10,939.90
5,075.88
5864.02
441.00

2011
8,428.89
4,745.59
3683.3
444.00

& Others
Net Profit before Taxation
Less: Provision for taxation
Net Profit

5423.02
1424.60
3998.42

3239.3
1248.09
1991.21

Appropriation:

2012

2011

759.03
1011.53

513.16
804.55

Statutory Reserve
Retained Earnings

Page 21 of 68

FUTURE OUTLOOK OF SJIBL

Business policy and six years perspective plan of the Bank from 2011 to 2016 has been
formulated to attain the financial strength, sustainable growth and operational efficiency. To
protect the interest of the stakeholders, bank has formulated the six years perspective plan for
consolidation of the growth and profitability. During the period of perspective plan, Bank has the
main objective to attain the height operational excellence and consolidation to turn the bank into
a dynamic Islamic Bank in the country. During the period from 2011 to 2016, The Bank has the
plan to regain its excellence in all the core areas of operations and business. During this period,
new and potential avenues of Business in all areas of operation to be explored and expanded
through the network of existing 26 branches and more new branches to be opened gradually
during the plan period subject to permission of Bangladesh Bank. The Bank ensures optimum
utilization of banks investible fund/deposit to be mobilized in future in an organized way to
maximize Banks profit consolidating the financial stren2th 1 the Bank and to achieve the overall
h mission & vision of the Bank as a whole.
The financial position and overall achievement of the Bank shall be reviewed and evaluated in
the light of the Annual Budget and Business plan on a quarterly basis in every year. Necessary
change, adjustment, modification & re-allocation shall be made after periodical review keeping
the real scenario in view. All out efforts shall be made for promotion and improvement of
quality-investment through effective supervision, control, follow-up and monitoring in order to
lessen the quantum of over dues, to arrest further over dues and to recover, regularize the over
dues and declassify the classified investments. Adequate care & caution to be exercised for
compliance with 05 core risks as per Bangladesh Banks Policy/instructions during the planned
period. Asset-Liability of the Bank shall be managed effectively through ALCO to avoid
Liquidity Risk, profit rate risk, operational risk and other risks.

Page 22 of 68

Thus, Shahjalal Islami Bank Limited will be turned into a dynamic Islamic Bank in the country
and will expand its Banking Business all over the Country to provide the Banking services to the
groups including the deserving economic groups of the society who have no easy access to the
banking channel.
GENERAL BANKING
General banking is the starting point of all the banking operations. This department does the
most important and basic works of the bank. It is also the department, which provides day-to-day
services to the customers.
All other departments are linked with this department. It also pays a vital role in deposit
mobilization of the branch. SJIBL provides different types of accounts, locker facilities and
special types of saving scheme under general banking. For proper functioning and excellent
customer service this department is divided into various sections namely as follows.
7.1 Account opening section:
Bankers and Customer relationship established through opening an account. It binds the banker
and customer into a contractual relationship. There are two types of account i.e. deposit account
and investment account. Generally account opening means to open a deposit account. Deposits
are the lifeblood of a bank, which is invested, in a bank through opening an account. This section
of general banking of the SJIBL deals with opening of different types of accounts. It is also deals
with issuing of checkbooks and different deposits books to the different accounts openers. A
customer can open different types of accounts through this department.
7.2 Cash Section:
Cash is the lifeblood of all financial activities. Cash section is a very sensitive point of the
branch. This section deals with all types of negotiable instruments and it includes vault, used as
the store of cash, instruments. The vault is insured up to TK.20 LAC. Insured amount yet to be
enhanced to Tk. 40 lac. Operation of this section begins when the banking hour starts. Cash
officer begins his/her transaction with taking money from the vault, known as the opening cash
balance. Vault is kept in a more secured place. The amount of opening cash balance is entered
into a register.
Page 23 of 68

After whole days transaction, the surplus money remains in the cash counter is put back in the
vault and known as the closing balance. If the cash stock goes beyond this limit, the excess cash
is then transferred to SJIBL Foreign Exchange branch. The main functions of this section are Cash Receipt
Cash Payment
Cash department is the most vital department of a bank and it is call blood of a bank. It is a
platform to communicate with customers. Cash department receives & pays cash directly.
In the cash department there are following register:

Vault register

Cash receive register

Cash payment register

Cash balance register

Rough cash balance book

Cash remittance register

Key register

Cash position memo

There is a procedure of cash in and cash-out from the vault. Also a systematic procedure is
maintained for receiving cash through different vouchers and payment against different cheques
and vouchers.
Cash Receive:
Cash is the life of a bank. Different types of from are use for cash deposits for different types of
accounts. Cash may be received by the following ways:

Current of Savings account pay-in-slip

Credit voucher

Different types of instrument remittance (TT, DO, PO etc.) are received by respective
forms.

Bills like National Life Insurance Co. Ltd.

Share collection

Page 24 of 68

Different types of scheme

Cash payment:
Cash is paid in payment counter against the following instrument:

Cheques

Cash debit voucher

Pay-in-slip

Pay Order, DD etc.

Procedure:
Receive of the cheques with a signature behind it.
1. Scrutinize it by an authorized officer.
2. Submit to computer-to-computer section for checking the available balance.
3. Cancelled & seal up Pay in Cash and cancellation through sign up.
4. Again submitted to computer section for debiting the party A/C and seal up Posted.
5. Send to cash counter payment officer.
6. Cash officer checks the cancellation, seal and seal up Cash Payment
7. Entry the payments register.
8. Take another signature of payee behind the cheque and pay cash.
Cash Balance:
At the end of the transaction:

Sum of total received

Sum up total payment

Total receiving + Opening balance Total payment = Closing balance for that day &
opening balance for the next day.

Check it with computer sheet.

Counting cash.

Entry the cash balance register.

7.3 Clearing section:

According to the Article 37(2) of Bangladesh Bank Order, 1972, the banks which are a member
of the clearing house are called as Scheduled Banks. The scheduled banks clear the cheques
drawn upon one another through the clearing house. This is an arrangement by the central bank
Page 25 of 68

where everyday the representative of the member banks sits to clear the cheques. For clearing
there is a department in every Bank.
This department receives cheques, drafts and like instruments from its customers for the purpose
of collection with a deposit slip over the counter crediting their accounts. Clearing of cheque is
done through the clearing house in Bangladesh Bank. Everyday the first hour starts at 10:00 a.m.
and returns house at 5:00 p.m.
Deposit Mobilization of SJIBL
Bank account is a contractual relationship between a bank and the customers. It is the best way
for a customer to build relationship with the bank. Like interest-based conventional banks, the
main function of Shahjalal Islami Bank Limited (SJIBL) is to mobilize saving and provide
financial support to the entrepreneurs. Depositors receive interest in a predetermined rate for
their deposits make with an interest based banks, where SJIBL neither pay not receive interest
and mobilizes saving of the common people in line with Islamic Shariah.
Deposit account can take in a various forms such as:
8.1 Al Wadiah Current Deposit (AC)
8.2 Mudaraba Savings Deposit (MSD)
8.1 Al Wadiah Current Deposit (ACD)
Shahjalal Islami Bank Limited receives deposits in its Al Wadia Current Account. It has some
similarity with the current account of conventional bank. The term Al Wadiah Current Deposit
means deposit of money allowing somebody to sue it. Banks being trustee preserves and keeps or
in safe custody of what is deposited. Depositors feel safe in keeping their money with the bank
and take transaction facilities. Bank provides assurance of returning money to the depositors on
demand. In the process of opening Al-Wadiah Deposit, the bank gets approval of the depositors
regarding the use of the deposited money and earns profit out of their development. Any losses
incurred by way of such investment are totally borne by the bank. Thus, the depositors dont take
the risk of losses with Al-Wadiah Current Deposit; they also dont expect any profit from it.
Depositors are provided with cheque book. They can withdraw or deposit any amount as and

Page 26 of 68

when they like. Bank may charge a fee in the account. Al-Wadiah Deposit are short terms and
very uncertain, thus banks have to be very useful in the investment of money from this account.
8.2 Mudaraba saving Deposit (MSD):
Mudaraba Saving Deposit (MSD) is open by the lower and middle people who wish to save a
part of their incomes to meet their future need intend to earn an income from their savings. It
aims at encouraging savings of non-trading persons(s), institution(s), society, etc. by depositing
small amount of money in the bank.

Restriction on withdrawals and deposit:

The number of withdrawals over a period of time is limited. Two withdrawals per
week are permitted. But more than that no interest will be paid on rest amount for
that month.

The total amount of one or more withdrawal on any date should not exceed 25% of
the in the accounts unless 7 (seven) days advance notice is given.

The customer may deposit any amount in the savings bank account subject to a
minimum of Tk.2000/- in the account.

Payment of Profit:
Shahjalal Islami Bank Limited is proving 5.5% profit on Mudaraba Saving Deposit.
Provisional Rate of Profit

Page 27 of 68

Sl. Deposit Product

Provisional Rate

01. Mudaraba Savings Deposit

4.00%

Mudaraba Special Notice Deposit : On average Balance

Average balance less than 1 crore

4.50%

Average balance 1 crore to less than

25 crore

5.50%

02. Average balance 25 crore to less than

6.50%
50 crore
Average balance 50 crore to less than
7.50%
100 crore
Average balance 100 crore and above 8.00%
Mudaraba Term Deposit : Any Amount
03.

i) 1 Month

9.00%

ii) 3 & 6 Months

11.00 %

iii) 1 Year

11.00 %

Money Spinning Account: Daily product basis

Tk . 50,000 to less than Tk. 1 Lac
04. Tk . 1 Lac to less than Tk. 5 Lac

5.00%
5.50%

Tk . 5 Lac to less than Tk. 10 Lac

6.00%

Tk . 10 Lac and above

7.00%

05. Mudaraba Scheme Deposits

a) Monthly Income Scheme:
1 year

Discontinued

2 Years

Discontinued

3 Years

12.00%
(Tk.1,000/-per month per lac: before tax)

b) Multiple Benefit Scheme:

i) Double Benefit
ii) Triple Benefit

11.61%
(Minimum amount Tk. 10,000.00 & Will be
doubled in 6 years )
11.04%
(Minimum amount Tk. 10,000.00 & Will be tripled
Page 28 of 68

in 10 years )
c) Millionaire Scheme:
i) 5 Years
(Tk 12,295/ Per Month)

11.50%

ii) 10 Years
(Tk. 4,570/ Per Month)

11.00%

iii) 12 Years
(Tk.3,340/ Per Month)

11.00%

iv) 15 Years
(Tk.2,180/ Per Month)

11.00%

v) 20 Years
(Tk.1,145/ Per Month)

11.00%

d) Monthly Deposit Scheme:*

i) 3 Years

11.50%

ii) 5 Years

11.50%

iii) 8 Years

11.00%

iv) 10 Years

11.00%

e) Hajj Scheme:**
Up to 10 Years

12.05%-12.50%

Monthly Deposit Scheme: Monthly installment and provisional amount payable at maturity
(amount in Taka)

Period
3 Years

Installment
500

1,000

2,000

5,000

10,000

25,000

50,000

21,579

43,158

86,316

2,15,791

4,31,581

10,78,953 21,57,905
Page 29 of 68

5 Years

40,679

81,357

1,62,714 4,06,786

8,13,572

20,33,933 40,67,858

8 Years

77,133

1,54,265 3,08,531 7,71,327

10 Years

1,09,494 2,18,987 4,37,975 10,94,936 21,89,873 54,74,682 1,09,49,364

15,42,653 38,56,633 77,13,267

Mudaraba Hajj Scheme Deposit: Monthly installment and provisional amount payable at
maturity (amount in Taka)
Account opened in 2013
sYear Monthly
Installment

Expected Amount payable at Maturity

to meet-up Hajj Expenses

Monthly
Rate

Yearly
Rate

24,000

3,08,250

12.50%

13.00%

12,000

3,28,450

12.45%

13.05%

7,800

3,41,550

12.40%

13.05%

5,750

3,58,250

12.35%

13.01%

4,500

3,74,250

12.30%

12.97%

3,650

3,89,250

12.25%

12.92%

3,000

3,99,100

12.20%

12.87%

2,500

4,06,600

12.15%

12.82%

2,100

4,11,250

12.10%

12.77%

10

1,800

4,19,450

12.05%

12.72%

ACCOUNT OPENING SYSTEM

9.1 Opening a saving account:

Page 30 of 68

For Operating a Mudaraba Saving Deposit following documentation are required

Two copies of passport size photographs of accountholder and one copy passport
size photo of nominee.

Introductory reference.

Commissioners/Chairman Certificate.

9.2 General Precautions of opening an MSD Account:

After opening an account and before issuing a Cheque book the authorized officer should check
the account operating form for the complete information, which is given by the customers.

Name of the account holder.

Photos of the account holder.

Date of opening

Types of account.

Present and permanent address

Name of the nominee and their address.

Initial deposit

Specimen signature in the form in the Specimen signature card.

Name, address and the account number of the introducer.

9.3 Mudaraba Short Notice Deposit (MSND):

Shahjalal Islami Bank Limited also receives term deposit from the clients. The SND account is
different from the interest-based banks. It is also a Time Deposit account. The formalities for
opening of this account are similar to those required for Al-Wadiah Current Account. The only
difference is that seven (7) days notice is required for withdrawal of any sum and profit is paid.
The rate of profit for this account is 5%. If the withdrawal on demand is desired, it may be paid
subject to the for-feature for the period of notice or the expired of notice.
The Shahjalal Islami Bank Limited (SJIBL) is containing some Deposit Scheme, which are the
really profitable for bank and customer. The Bank maintains Shariah based transaction with
their customer by different Scheme those are3.2.4 Monthly Deposit Scheme (MDS)
3.2.5 Mudaraba Term Deposit Receipt (MTDR)
Page 31 of 68

3.2.6 Monthly Income Scheme (MIS)

3.2.7 Double Profit Deposit Scheme (DPDS)
3.2.8 Millionaire Scheme (MS)
3.2.9 Hajj Palon Scheme (HS)
9.4 Monthly Deposit Scheme (MDS/DPS)
This account open very easy and there are no fixed day to open. Account holders do not need any
savings account if he/she directly pays their monthly installment. Account holders carefully
complete the MDS form and attests two copies passport size photograph one nominee and other
own with form. Account holders can pay advance to continue their installment or can give
permanent instruction from his/her savings account. In this term, the account holders are bound
to pay Tk.50 for transferred and Tk.5/- for service charge. If the account is close before the
maturity then profit will be calculate according to saving rates. If a depositor fails to pay
calculate as Savings rate. But for the first six-month no profit will be calculate. Nominee will
enjoy the profit will in absence of the accountholder. Depositor will get the profit after the
matured according to following table:
Install.

Tk.

Tk.

Tk.

Tk.

Tk.

Tk.

period
5 years
8 years
10

1,000
40125
77500
111000

2,000
80250
155000
222000

5,000
10,000
25,000
50,000
160500 401250 802500 2006250
310000 775000 1550000 3875000
444000 1110000 2220000 5550000

years
9.5 Mudaraba Term Deposit Receipt (MTDR)
It is like a fixed deposit in the conventional banking system but it does not receive or accept
interest father, this account give profit and collect deposits. In this mode less than that Tk.1 crore
or Tk.1 crore and above can be deposited against client will get non-transferable instrument of
equal amount. If a customer withdraw his/her money before one month than he/she will not get
any kind of profit. On the other hand, after the
matured if client dont withdraw his/her money than it will be auto renewed with imposed profit
for the next days. If a depositor would like to withdraw his profit after six months he/she will get
the profit accordance with previous years profit rate. After the announced yearly profit or loss, if
bank felt in loss posting then the depositor bound to incur the loss. In absence of account holder

Page 32 of 68

the selected nominee will get the money. Account holder bound to bear any kind of tax or excise
duty according to government circular. The profit rates of this account are:
Time of Deposit

Up to Tk. 1(one) crore

3 Months
6 Months
1 Year

11.25%
11.50%
11.75%

9.6 Monthly Income Scheme (MIS)

This scheme is very popular in our country, job retreat people opens this scheme. And which
people are not able to do business than they are wanting to safe from risk and they open it. It is
the scheme for profit earning. In this account depositor can deposit minimum of Tk. 50,000/- and
above. Depositor will get Tk500/ against Tk. 50,000/-. And it is the fixed deposit for 3 (three)
years. If the accountholder to want to close his/her account before maturity date than he/she will
get profit accordance with savings rate that is 5.5%. In the absence of accountholder, the
specified nominee will get the whole benefit. The profit rates of this account are:
Period of Scheme

Taka Per month

Provisional Rate

Remarks
Credit

3 Years

Tk.1000/- for one lac

12.00%

Number

Account
is

required
9.7 Double Profit Deposit Scheme (DPDS)
The Shahjalal Islami Bank gives the facility to the client by the Islamic Shariah Mudaraba rules
and regulations. In this scheme depositors can deposit more than Tk.10, 000 for 6 years and after
the maturity date accountholder will receive double than his/her deposited amount. Depositor
will get 80% investment facility by deposit the deposit receipt. Bank can invest this amount any
sector by the Islamic Shariah rules and regulations. Accountholder are bound to pay any
government tax. For opening this account applicant need recent one copy photograph and one
copy photograph of nominee. The profit rates of this account are:
Period of Scheme
6 Years

Provisional Rate
11.61%
Page 33 of 68

9.8 Millionaire Scheme:

It maturity is long than other scheme. Generally this account is designed for children. Here,
applicants are the selected people for operating the account on behalf of the accountholder. The
depositor should to deposit the account within first 15 days of the month; neither will he/she be
designated as debtor to the bank. If 15 th date is the off day then the next working day will be
schedule date. Accountholder can open more one account this Branch. Depositor will get 80%
loan facility against the deposit money. No cheque book will be issued for this account, but the
bank will provide deposit book.
The profit rate based on different amount and time are given below:
Time

Amount Per month

Total Amount And Profit

Rate
12 years
Tk. 3280/=
Tk.10 Lac
15 Years
Tk. 2120/=
Tk.10 Lac
20 Years
Tk. 1080/=
Tk.10 Lac
25 Years
Tk. 575/=
Tk.10 Lac
9.9 Hajj scheme:
Hajj is compulsory for all who are the ability to hajj at that cause Hajj is important for all. Hajj is
the important way for the Islam but many people have the interest but there have no ability.
Many people create the ability but at that time they are physically weak. At that cause Shahjalal
Islami Bank open this scheme.
Requirements for this scheme:
Must be age above 18.
Account holder must be citizen of the Bangladesh.
Account holder must be needed the attested photo with introducer.
Gradient can maintain their account for the child.
Duration of the scheme:
This account is duration time is 1 year to 25 year.
12 monthly schemes within one year.
Amount of scheme:

Duration (Year)

Monthly scheme

Given after duration

Page 34 of 68

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

(In Taka)

(In Taka)

10200
5100
3325
2450
1925
1570
1310
1120
965
840
740
655
585
520
465
420
380
340
310
280
255
230
210
190
175

129950
137465
142350
148240
154475
160570
166170
172780
178390
183950
190230
196210
202970
207920
213370
220375
227300
231240
239180
244600
251790
256315
263780
268700
278350

The way of the payment:

Scheme must pay at 25 dates every month if this date is holiday at that time it will pay at next
working day.
If scheme pay in cheque at that time cheque clearing must at 25 date every month.
If the accountholder is give the permanent paying order at that time charge 50 taka and per
scheme is 5 taka.

9.10 There have new deposit scheme:

Mudaraba Lakhpoti Deposit Scheme
Mudaraba Education Deposit Scheme
Mudaraba Marriage deposit Scheme
Mudaraba Mohor Deposit Scheme
Page 35 of 68

 Special MTDR Scheme

COMPUTER SERVICE
Shahjalal Islami Bank is computerized and provides the following services some of these
services will be introduced soon. Shahjalal Islami Bank Limited introduced a few schemes,
which are very popular:
Online services
1. Automated Accounting
2. Integrated System
3. Signature Verification
4. Any Branch Banking
5. ATM Services
6. POS Services
7. SMS Push Pull Services
8. Other Delivery Channel Services (to be implemented)

SJIBL VISA CARD

Card is considered as a new dimension of product resulting from technological development in
the banking arena. In line with our affiliation with VISA International for VISA ATMs and POS,
the following two products are launched broadening service products of the Bank to the clients:
1.

VISA Electron (SJIBL VISA Debit Card - local)

2.

VISA Prepaid (SJIBL VISA Prepaid Card)

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.

Page 36 of 68

Usage Limit
Description
Transaction Limit
Cash withdrawal limit (total) 4 times per day
Cash
withdrawal
limit Tk. 20,000 per day
(amount)
Balance checking
Mini statement printing
PIN change
Invalid PIN retry count
Card usage limit in ATMs

4 times per day

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

(total)
Fees & Charges:
A. VISA Debit Card
Particulars

Renewal

Replacement PIN

Transaction Charges (ATM)

re-issue

ON-US

Q-Cash

Others (VISA)

General

Primary

500

400

200

Free

10

125

250

400

200

Free

10

125

Supplementary

Position of Individual account in respect of Total account:

Shahjalal Islami Bank always emphasis on the customer satisfaction. Thats why they offer
number of accounts. This section I tried to show the ratios of individual accounts in respect of
total account.
Application

Number of Account

ACD

242

DPMSS

236

Hajj

28

Page 37 of 68

HDS

21

INV

1015

MBMSS

27

MCWDS

MDS

2200

MIS-3

448

MS-12

210

MS-I5

101`

MS-20

80

MS-25

160

MSD

2139

MTDR

1616

SND

60

Ratios of Individual Accounts in Total Account

Page 38 of 68

Investment
The special feature of the Investment policy of Shahjalal Islami Bank Limited is to invest on the
basis of profit loss sharing system in accordance with the tenets and principles of Islamic
Shariah. Earning of profit is not only the motive and objective of the banks investment policy
rather emphasize is given in attaining social good and in creating employment opportunities.
The investment and credit department is very important department of a Bank. The money
mobilized from ultimate surplus units are allocated through this department to the ultimate
deficit unit (Borrower). The success of this department keeps a great influence over the profit of
a bank. Failure of this department may lead the bank to huge losses or even to bankruptcy. That
is why; special care should be given to this department.
Bank landing is important to the economy. Adequate finance can maintain a stable output. But as
liquidity and profitability are conflicting considerations, SJIBL, as a bank, while employing the
funds pays due regard to both profitability and liquidity.
Investment and credit department receive application from clients in a prescribed application
form supplied by the Shahjalal Islami Bank Limited. This application form contains detail about
Page 39 of 68

the borrowers such as names address of the borrowers/ directors/partners/proprietors, type and
nature of the business, security offered, market of the borrower product, annual sales and
production etc. The applicant must duly sign the application form. The branch officer after
receiving the application form scrutinize the information provided in the form, collect additional
financial information of the proposed firm, detail financial and other relevant information of
sister concern, if any. After appraising the investment request and its securities the branch makes
an investment proposal with detail information to the head office for approval. The officer incharge and manager must sign this investment proposal as well. If head office approves the
investment proposal, the branch prepares all documentation and make arrangement for
investment disbursement Shahjalal Islami Bank Limited offer various types of investments.
The objectives and principles of investment operations of the Bank are :
To invest fund strictly in accordance with the principles of Islamic Shariah.
To diversify its investment portfolio by size of investment, by sectors (public & private),
by economic purpose, by securities and by geographical area including industrial,
commercial & agricultural.
To ensure mutual benefit both for the Bank and the investment-client by professional
appraisal of investment proposals, judicious sanction of investment, close and constant
supervision and monitoring thereof.
To make investment keeping the socio-economic requirement of the country in view.
To increase the number of potential investors by making participatory and productive
investment.
To finance various development schemes for poverty alleviation, income and
employment generation with a view to accelerating sustainable socio-economic growth
and upliftment of the society.
To invest in the form of goods and commodities rather than give out cash money to the
investment clients.
To encourage social upliftment enterprises.
To shun even highly profitable investment in fields forbidden under Islamic Shariah and
are harmful for the society.

Page 40 of 68

 The Bank extends investments under the principles of Bai-Murabaha, Bai-Muazzal, Hire
Purchase under Shirkatul Meelk and Musharaka. The Bank is making sincere efforts to
go for investment under Mudaraba principle in near future.

Investment Processing of SJIBL

Generally a bank takes certain steps to deliver its proposed investment to the client. But the
process takes deep analysis. Because banks invest depositors fund, not banks own fund. If the
bank fails to meet depositors demand, then it must collapse. So, each bank should take strong
concentration on investment proposal. However, Shahajalal Islami Bank Limited (SJIBL) makes
its

investment

decision

through
successfully

passing the

following

crucial

steps:

Selection
Here,

of the client
investment

taker

(client)

approaches

to any of the

branch

Shahjalal

of

Islami

Bank Limited

(SJIBL).

Then, he talks

with

the

respective

manager

or

officer
Page 41 of 68

(Investment). Secondly, bank considers five Cs of the client. After successful completion of the
discussion between the client and the bank, bank selects the client for its proposed investment. It
is to be noted that the client/customer must agree with the banks rules & regulations before
availing investment. Generally, bank analyses the following five Cs of the client:

Character;
Capacity;
Capital;
Collateral; and
Condition.

Application stage
At this stage, the bank will collect necessary information about the prospective client. For this
reason, bank informs the prospective client to provide and/or fill duly respective information
which is crucial for the initiation of investment proposal. Generally, here, all the required
documents for taking investment have to prepare by the client himself. Documents that are
necessary for getting investment of SJIBL are prescribed below:
I.
II.
III.
IV.
V.

Trade License photocopy (for proprietorship);

Abridged pro forma income statement;
Attested copy of partnership deed (for partnership business);
Prior three (03) years audited balance sheet (for joint stock company);
Prior three (03) years business transactions statement for the musharaka/mudaraba

VI.
VII.

investment;
Abridged pro forma income statement for the musharaka/mudaraba investment;
Attested copy of the Memorandum of Association (MOA) & Articles of Association

VIII.
IX.
X.

(AOA) for the joint stock company;

Attested copy of the Tax Identification Number (TIN)- including final assessment;
Tenders of the proposed assets (in case of HPSM);
Detailed summary of the sundry debtors and creditors (including both time &

XI.

schedule);
Summary of the personal movable & immovable assets; and others.

Appraisal stage
At this stage, the bank evaluates the client and his/her business. It is the most important stage.
Because, on the basis of this stage, bank usually goes for sanctioning the proposed investment
limit/proposal. If anything goes wrong here, the bank suddenly stops to make payment of
investment.
Page 42 of 68

In order to appraise the client, Shahjalal Islami Bank Bangladesh Limited (SJIBL) provides a
standard F-167B Form (Appraisal Report) to the client for gathering all the information. The
original copy of the appraisal report is enclosed in the appendix chapter. However, the following
contents are presented from that appraisal report:
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.
O.
P.
Q.
R.
S.

Companys/Clients Information.
Owners Information.
List of Partners/Directors.
Purpose of Investment/Facilities.
Details of Proposed Facilities/Investment.
Break up of Present Outstanding.
Other Liabilities of the Client/Group.
Previous Bankers Information.
Details of Sister/Allied Concerns.
Allied Deposit as on.
Business/Industry Analysis.
Relationship Analysis.
Asset-Liability position of the client as per Audited Balance Sheet.
Working Capital Assessment.
Risk Grade.
Particulars of the godown for storing MPI/Murabaha goods.
Insurance Coverage.
Audit Observation.
Security Analysis.

Sanctioning stage
At this stage, the bank officially approves the investment proposal of the respective client. In
this case client receives banks sanction letter. Shahjalal Islami Bank Bangladesh Limited
(SJIBL)s sanction letter contains the following elements:
1.
2.
3.
4.
5.
6.

Investment Limit in million.

Mode & amount of investment.
Purpose of investment.
Period of investment.
Rate of return.
Securities:
a. Primary- Stock of goods is the primary security.
i. LC/Bills: Related Documents.
ii. Murabaha Post Investment (MPI)/Bai-Murabaha: Pledge of MPI/BaiMurabaha goods.
iii. MPI/Bai-Bai Murabaha-TR: Lien on goods to be released.
Page 43 of 68

b. *Cash/Goodsi. Bai-Murabaha: 25% cash security on cost price to be subsequently

converted to goods security.
ii. TR (Trust Receipt): Without cash security.
c. Collateral: Immovable properties.

Cash/Goods security
In allowing Murabaha investment and amount of cash security is generally realized from the
client (amount depends on the nature of goods, creditworthiness of the client, collateral security
obtained etc.) which is converted to goods security after purchase of goods purchased out of
banks investment and clients cash security is pledged to the bank, kept under banks custody
before its delivery to the client on payment. Example: If, for a Murabaha investment cash
security is fixed at 25% Banks investment stands at 75% on the total goods purchased. For
example, if cost of total goods purchased is Tk.100000 Banks investment will be Tk.75000 and
clients cash security will be Tk.25000.
Bank
Tk. 75000 (75%)

Client
Tk. 25000 (25%)

Total cost of goods

Tk. 100000 (100%)

4.3.5 Documentation stage

At this stage, usually the bank analyses whether required documents are in order. In the
documentation stage, Islami Bank Bangladesh Limited (IBBL) checks the following documents
of the client:
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.

Tax Payment Certificate.

Stock Report.
Trade License (renewal).
VAT certificate
Liability statement from different parties.
Receivable from different clients.
Other assets statement.
Aungykar Nama.
Ghosona Potra.
Page 44 of 68

X.
XI.
XII.
XIII.

XIV.
XV.

Three (03) years net income & business transactions.

Performance report with the bank.
Account Statement Form of the bank.
Valuation Certificate
a. Particulars of the Proposal.
b. Particulars of the Mortgagor.
c. Particulars of the Properties.
Outstanding liability position of the bank.
CIB (Credit Information Bureau) Report.

4.3.6 Disbursement stage

At this stage, bank decides to pay out money. Here, the client gets his/her desired fund or goods.
It is to be noted that before disbursement a site plan showing the exact location of each
mortgage property needs to be physically verified.
4.3.7 Monitoring & Recovery stage
At this final stage of investment processing of the Shahjalal Islami Bank Bangladesh Limited
(SJIBL), bank will contact with the client continually, for example- bank can obtain monthly
stock report from the client in case of micro investment. Here, the bank will keep his eye on
over the investment taker. If needed, bank will physically verify the clients operations. Also if
bank feels that anything is going wrong then it tries to recover its investment fund from the
client.

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Chapter 5: The Performance Evaluation of SJIBL (Foreign Trade)

5.1 Foreign Trade
Foreign Exchange means foreign currency and it includes any instrument drawn, accepted, made
or issued under clause (13), Article 16 of the Bangladesh Bank Order, 1972. All deposits, credits
and balances payable in any foreign currency and draft, travelers cheque, letter of credit and bill
of exchange expressed or drawn in Bangladeshi currency but payable in any foreign currencies.
Bangladesh Bank issues Authorized Dealer (AD) license by observing the banks performance
and also the customers associated with the bank for conducting foreign dealings.
Banks play a vital role by minimizing the risk of two parties, namely buyer and seller. In fact
without the help of banks we cannot think about a congenial international trade environment. The
special feature of the Investment policy of Shahjalal Islami Bank Limited is to invest on the basis
of profit loss sharing system in accordance with the tenets and principles of Islamic Shariah.
Earning of profit is not only the motive and objective of the banks investment policy rather
emphasize is given in attaining social good and in creating employment opportunities.
Now the question comes how banks help international trade. We know that in a local trade there
is a chance to know about each other. But in international trade the involved parties stay two
distant places. For a buyer the following risks are involved Risk of non-delivery of goods.
Risk of receiving sub standard goods.
Risk of fraud in goods.
For the seller the following risk is involved Risk of non-payment.

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To reduce the aforesaid risks an independent system is introduced which will safeguard the
buyer as well as seller in an international trade. Actually banks play due role by getting into
two parties and bind them.

Foreign Trade

Import Section

Export Section

Remittance
Section

Fig: Area of Foreign Trade

The achievement of Shahjalal Islami Bank in the area of foreign exchange business has been
quite phenomenal. The Bank has been providing services to import and export trade and for
repatriation of hard-earned foreign exchange of Bangladeshis living and working abroad and has,
by now, consolidated its position in these areas.

5.2 Import Section

In case of Import, the importers are asked by their exporters to open a letter of credit, so that
their payment against goods is ensured.
Letter of Credit (L/C) is a payment guarantee to the seller by the buyers bank. It is in fact, a
Credit Contract whereby the buyers bank is committed (on behalf of the buyer) to place an
agreed amount of money at the sellers disposal under some agreed conditions. If the conditions
of the credit do not require for presentation of specified documents, it is called Clean Credit. On
the contrary, if the presentation of specified documents is obligatory, the credit is called a
Documentary Credit.

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Buyers and sellers enter into contracts for buying and selling goods/ services and the buyer
instructs his bank to issue L/C in favor of the seller. Here bank assumes fiduciary function
between the buyer and seller.
SJIBL deals with two types of L/C. These are 1. Sight L/C
2. Deferred L/C.
5.2.1Forms of Letter of Credit:
A Letter of Credit (L/C) may be two forms. These as Below
4.2.1Revocable letter of credit
4.2.2Irrevocable letter of credit

Revocable L/C
If any letter of credit can be amendment or change of any clause canceled by consent of the
exporter and importer is known revocable letter of credit.
A revocable letter of credit can be amended or canceled by the issuing bank at any time without
prior notice beneficiary. It does not constitute a legally binding undertaking by the bank to make
payment. Revocation is possible only until the issuing bank or correspondent has honored the
document. Thus a revocable credit does not usually provide adequate security for the beneficiary.
Undertaking by the bank to make payment. Revocation is possible only until the issuing bank or
correspondent has honored the document. Thus a revocable credit does not usually provide
adequate security for the beneficiary.

Irrevocable

L/C

A documentary credit takes many different forms. The first decision i.e. the choice of the basic
form of the credit is usually made at the time of negotiation between the seller and the buyer. The
terms of the credit will be determined in detail when the buyer instructs his bank to issue the
credit. At this stage the seller, on being informed by the bank regarding the credit terms, should
ensure whether the credit terms are agreeable and, if necessary, demand from the buyer a more
precise wording of the credit terms or the necessary amendments. It is in the interest of both the
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parties to the contract that the individual terms of the credit transaction are clearly and correctly
stipulated. This facilitates the examination of the documents at the time of utilization.
The following parties are involved to a letter of credit, namely Obligatory Parties are:
Importer/ Buyer/ Applicant
Opening Bank/ Issuing bank
Advising Bank/ Notifying Bank
Exporter/ Seller/ Beneficiary
Optional Parties (In case of need) are
Negotiating Bank
Confirming Bank
Paying/ Reimbursing bank
An importer is required to have the following formalities to import the goods through SJIBL:
An account with Islami Bank Bangladesh Ltd. FEX. Branch
Import Registration Certificate (IRC)
Tax Paying Identification (TIN) Number
Proforma Invoice/ Indent
Membership Certificate
LCA (Letter of Credit Application) form duly attested
One set of IMP Form
Insurance Cover note with money receipt
Others

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 IMP Procedure
All payments for imports into Bangladesh are required to be reported to Bangladesh Bank on
IMP form. The importer submits the IMP form in duplicate duly filled in and signed by him or by
his authorized agent.

5.5 Contents of the Letter of credit

Bank normally issued letter of credit (L/C) on forms, which clearly indicate the Banks name and
extent of the banks obligation under the credit. The contents of the L/C of different may be different.
In general L/C contains the following information.
Name of the buyer: Who is also known as the accounted since it is for his account that the credit
has been opened?
Name of the seller: who is also known as the beneficiary of the credit?
Moment of the credit: This should be the value of the merchandise plus any shipping charge intent
to be paid under the credit.
Trade terms: Such as FOB and CIF
Tenor of the draft: which is normally dependent upon the requirements of the buyer?
Expiration Date : which is specified the last date documents my be presented in this manner on by
including additionally a latest shipping date the buyer may be exercise control over the time of
shipment .

5.6 LC on Deferred Payment Basis

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Subject to compliance with other conditions laid down in this chapter and the current IPO,
import LCs may be opened on deferred payment (DA) basis in the follows cases:
Capital machinery up to 360 days usance basis;
Industrial raw materials for own use of industrial importers (including back-to-back
imports discussed later in the section) on up to 180 days usance basis.
Import of coastal vessels including oil tankers and ocean-going vessels including those
procured for scrapping on up to 360 days usance basis;
Import of agricultural implements and chemical fertilizer on up to 180 days basis;
Import of life saving drugs on up to 90 days usance basis;
For import on deferred payment basis, the price must be internationally competitive and usance
interest, if any, should not be higher than the LIBOR for the corresponding period or the rate
prevailing in the currency of the country of the supplier.
Instructions regarding opening of import LCs on longer usance terms against suppliers credits
arranged by industrial enterprise in the private sector as per general or specific BOI approval are
contained in chapter 23 of the Guidelines for Foreign Trade Transactions of Bangladesh Bank.

5.7 Export Section

Foreign Exchange Regulation Act, 1947 nobody can export by post and otherwise than by post
any goods either directly or indirectly to any place outside Bangladesh, unless a declaration is
furnished by the exporter to the collector of customs or to such other person as the Bangladesh
Bank (BB) may specify in this behalf that foreign exchange representing the full export value of
the goods has been or will be disposed of in a manner and within a period specified by BB.
Export section deals with two types of L/C that are as follows-

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Export Section

Back-to-Back L/C

Export L/C

Fig: Back to Back L/C

Back-to-back L/C is a secondary L/C (New Import L/C) opened by the sellers bank based
on the original L/C (Master L/C) to purchase the raw materials and accessories for
manufacturing of the export product (s) required by the seller. Under the Back to Back
concept, the seller as the Beneficiary of the master L/C offer it as a security to the advising
Bank for the issuance of the second L/C. The beneficiary of the Back-to-Back L/C may be
located inside or outside the original beneficiarys country. In case of a Back-to-Back L/C,
the bank takes no cash security (margin). Bank liens the Master L/C and the drawn bill are a
Usance/ Time bill.

Buyer, USA instructs his bank to

issue an Import L/C in favor of
Lenny Fashions Ltd, Bangladesh.

SJIBL issues a Back to Back L/C

and forwards the same to 'Y'
Textile Ltd. through another
Exporter Bank.

USA bank issues a L/C and

forwards the same to Lenny
Fashions Ltd. through a Bdeshi
Bank (e.g. SJIBL Banani Branch.)
Lenny Fashions Ltd. submits his
Export L/C with a request to SJIBL
Banani Br. to create lien against L/C
and issue Back to Back L/C in favor
of 'X' Textile Ltd.

Fig: Back-to-Back L/C Procedure

SJIBL, following papers/ documents is required for opening a back-to-back L/C
Master L/C
Valid Import Registration Certificate (IRC) and Export Registration Certificate (ERC)
L/C Application and LCAF duly filled in and signed
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 Proforma Invoice or Indent

Insurance Cover Note with money receipt
IMP Form duly signed
The other type of L/C facility offered by this branch is Export L/C. Bangladesh exports a
large quantity of goods and services to foreign households. Readymade textile garments
(both knitted and wove), jute, jute-made products, frozen shrimps, tea are the main goods that
Bangladeshi exporters exports to foreign countries. Garments Sector is the largest sector that
exports the lion share of the countrys export. Bangladesh exports most of its readymade
garments products to USA and European Community (EC) countries. Bangladesh exports
about 40 % of its readymade garments products to USA. Most of the exporters who export
through this branch are readymade garment exporters. They open L/Cs in this branch to
export their goods, which they open against the import L/Cs opened by their foreign
importers.
The export trade of the country is regulated by the Imports & Exports (Control) Act, 1950. There
are a number of formalities that an exporter has to fulfill before and after shipment of goods.
These formalities or procedures are enumerated as follows
Export Registration Certificate (ERC): The exports from Bangladesh are subject to export
trade control exercised by the Ministry of Commerce through Chief Controller of Imports
& Exports (CCI&E). No exporter is allowed to export any commodity permissible for
export from Bangladesh unless he is registered with CCI&E and holds valid ERC. The
ERC is required to be renewed every year. The ERC number is to be incorporated on
EXP (Export) Forms and others documents connected with exports.
The EX Form: After having the registration, the exporter applies to SJIBL, FEx. Branch
with the Trade License, ERC and the Certificate from the concerned Government
Organization to get the EXP Form. If the branch is satisfied, an EXP Form is issued to the
exporter. An EXP Form usually contains the following particulars

Name and address of the Authorized Dealer;

Particulars of the commodity to be exported with particulars and code no;

Country of destination;
Page 53 of 68

Port of destination;

Quantity;

L/C value in foreign currency;

Terms of sale;

Name and address of Importer/ Consignee;

Bill of Lading/Railway Receipt/Airway Bill/Truck Receipt/Post Parcel Receipt

no. and date;

Port of Shipment/Post Office of Dispatch;

Land Custom Post;

Shipment Date;

Name of the Exporter with address;

CCI&Es registration number and date;

Sector (public or private) under which the exporter fails.

Securing The Order: Upon registration, the exporter may proceed to secure the export
order. This can be done by contracting the buyers directly through correspondence.
Signing Of The Contract : While making a contract, the following points are to be
mentioned: a) Description of the goods; b) Quantity of the commodity; c) Price of the
commodity; d) Shipment; e) Insurance and marks; f) Inspection, and g) Arbitration.
Procuring The Materials: After making the deal and on having the L/C opened in his
favor, the next step for the exporter is set about the task of procuring or manufacturing
the contracted merchandise.
Registration of Sale: This is needed when the proposed items to be exported are raw jute
and jute-made goods.
Shipment of Goods : The following documents are normally involved at the stage of
shipment: (a) EXP From, (b) photocopy of registration certificate, (c) photocopy of
contract, (d) photocopy of the L/C, (e) customs copy of ERF Form for shipment of jutemade goods and EPC Form for raw jute, (f) freight certificate from the bank in case of

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payment of the freight if the port of lading is involved, (g) railway receipt, berg receipt or
truck receipt.

5.7.1 Payment Terms

The terms of payment i.e. when and how payments are to be received by the exporters are
incorporated in the sales contract as per mutual agreement between the buyer and the seller.
These are normally the following:
Advance Payment
CAD (Cash against Document)
Consignment Sales
Trust Receipt
Documents against acceptance (D.A. Bill)
Documentary against Payment (D/P
Documentary Usance Bill
Letter of Credit

5.7.6 Advance against export bill

When shipment is not covered by an LC or the documents are found discrepant even though
shipment is made against LC, the export bill is sent to the correspondents for collection. In that
case, the bank may give advance to a trust worthy exporter against the security of the export bills
ranging upto 90% of the value of the bill, depending upon the merit of each case. In such cases,
bank may also insist on collateral securities, like guarantee from third party or equitable/legal
mortgage of property.
As any LC does not cover the shipment, the Bank should obtain clear instructions from the
drawer (exporter) of the bill particularly on the following points:

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 DA/DP/Sight Bills
Noting/Protesting
Advising fate of the bill
Realization of Collection charges, interest etc
Case in need
Clearance, storage, insurance etc. at destination
Mode of Presentation of the bill

5.8 Foreign Remittance

On March 24, 1994 Bangladesh Taka was declared convertible for current account international
transaction. As a result remittance became more liberalized.
SJIBL is very happy to announce to have joined hands with western union system and kushiara
and introduce swift service to serve expertise to send money back home quickly from anywhere
in the world. Money can also be sent quickly through western union, kushiara and swift service
from Bangladesh to other part of the world.

5.8.2 Western Union

Western Union a fast, reliable and convenient way to send a money transfer
Western Union Financial Services Inc. U.S.A. is the number one and reliable money transfer
company in the world. This modern Electronic Technology based money transfer company has
earned world wide reputation in transferring money from one country to another country within
the shortest possible time.
Shahjalal Islami Bank Limited has set up a Representation Agreement with Western Union
Financial Services Inc. U.S.A. Millions of people have confidence on Western Union for sending
money to their friends and family. Through Western Union Money Transfer Service, Bangladeshi
Wage Earners can send money quickly from over 280,000 Western Union Agent Locations in
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over 200 countries and territories world wide- the worlds largest network of its kind, only by
visiting any branches of Shahjalal Islami Bank Limited in Bangladesh.
The money sent by your loved ones is very special to you indeed. So, at Western Union, we offer
the following benefits:

Chapter 6: Financial Statements

6.1 Value Added Statement for the year ended 31 December 2012
The value added statement for the Bank shows how the value is created and distributed among
different stakeholders of the Bank.
Particulars

2012
Taka

2011

Taka

Income from Banking Services

7,117,040,267

5,285,386,647

Less: Cost of services & supplies

4,558,492,854

3,173,458,754

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Value added by the Banking

Services
Non-banking income

2,558,547,413

2,111,927,893

Loan & Other Provisions

(246,000,000)

(244,000,000)

Total value added

2,312,547,413

1,867,927,893

Distribution of added value

To Employees as salaries & allowances 472,065,391

20%

275,149,767

15%

To Government as Income Tax

724,596,028

31%

748,090,566

40%

To Statutory Reserve

359,032,864

16%

313,160,020

17%

To expansion & growth

756,853,130

33%

531,527,540

28%

Retained earnings
Depreciation

711,535,429
45,317,701
2,312,547,413 100%

504,549,513
26,978,027
1,867,927,893 100%

6.2 Economic Value Added Statement for the year ended 31 December 2012
Economic Value Addition (EVA) indicates the true economic profit of the company. EVA is an
estimate of the amount by which earnings exceed or fall short of required minireturn for
shareholders at comparable risks.
Particulars
Total Revenue
Expenses
Corporate Tax
Capital Charges
Economic Value Added

2012
7,117.04
5,075
724.60
601.10
715.47

Taka in Million
2011
5,285.39
3,475.59
748.09
447.19
614.52

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6.3 Market Value Added Statement for the year ended 31 December 2012
Market Value Addition (MVA) is the difference between the equity market value of a company
and the book value of equity invested in the company. A high MVA indicates that the company
has created substantial wealth for the shareholders.

Particulars
Market value of Total Equity
Less: Book value of Total Equity
Market Value Added

2012
10,480.87
5,429.97
5,050.89

6.4 Balance Sheet (As of 31 December 2012)

Note

2012
Taka

2011
Taka

PROPERTY AND ASSETS

Cash
Cash in hand (Including Foreign Currencies)
Balance with Bangladesh Bank & Sonali Bank
(Including Foreign Currencies)

562,922,561

449,615,577

3,515,663,193 2,773,858,394
4,078,585,754 3,223,473,971

Balance with other Banks & Financial

Institutions
Inside Bangladesh
Outside Bangladesh

Placement with other Banks & Financial

Institutions

1,729,470,208 546,298,932
404,441,115 168,432,590
2,133,911,323 714,731,522

4,287,781,041 5,270,089,600

1,100,000,000 800,000,000
2,383,146,682 344,189,400
3,483,146,682 1,144,189,400

Investments in Shares & Securities

Government
Others

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Investments
General Investment etc.
Bills Purchased and Discounted
8

Fixed Assets Including Premises

Other Assets
Non Banking Assets
Total Assets

9
10

40,369,639,045 29,197,016,442
3,588,621,666 3,721,757,226
43,958,260,711 32,918,773,668
620,466,461
358,743,429

338,806,004
499,438,757

58,920,895,401 44,109,502,922

LIABILITIES AND CAPITAL

Liabilities
Placement from other Banks & Financial
Institutions
Deposits and Other Accounts

11

4,500,000,000

4,654,500,000

12

3,072,788,942
27,578,741,808
12,489,742,364
3,966,538,988
351,419,391
47,459,231,493

1,863,522,467
18,985,664,403
10,191,759,337
2,975,717,377
263,076,409
34,279,739,993

Mudaraba Savings Deposits

Mudaraba Term Deposits
Other Mudaraba Deposits
Al-Wadiah Current Other Deposit Accounts
Bills Payable

Other Liabilities
Deffered Tax Liabilities
Total Liabilities

13
14

1,995,596,548
1,549,568,372
39,434,092
20,253,883
53,994,262,133 40,504,062,248

Capital / Shareholders Equity

Paid-up Capital
Statutory Reserve
Retained Earnings
Asset Revaluation Reserves

Total Shareholders Equity

Total Liabilities & Shareholders Equity

15
16
17
18

2,740,095,600
1,182,585,039
753,328,328
250,624,301

2,245,980,000
823,552,175
535,908,499
-

4,926,633,268

3,605,440,674

58,920,895,401

44,109,502,922

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6.5 Profit And Loss Account

Note
Investment income
Less: Profit pain on Deposits

2012
Taka

2011
Taka

21
22

5,530,882,252
4,200,278,401
1,330,603,851

4,236,170,670
2,962,395,290
1,273,775,380

23
24
25

409,019,391
926,165,551
250,973,073
1,586,158,015
2,916,761,866

192,717,942
693,074,139
163,423,896
1,049,215,977
2,322,991,357

26
27
28
29
30
31
32
33

466,715,391
100,478,972
724,909
11,315,142
40,536,536
5,350,000
4,040,999
152,557
200,000
52,631,301
22,330,358
171,121,380
875,597,545

Net Investment Income

Income from Investment in Shares / securities
Commission, Exchange and Brokerage
Other Operating Income

Total Operating Income

Salaries and Allowances
Rent, Taxes, Insurances, Electricity etc.
Legal Expenses
Postage, Stamps, Telecommunication etc.
Stationary, Printing, Advertisements etc.
Chief Executives Salary & Fees
Directors Fees & Expenses
Shariah Supervisory Committees Fees & Expenses
Auditors Fees
Depreciation & Repairs of Banks Assets
Zakat Expenses
Other Expenses

Total Operating Expenses

34
35
36

271,249,767
69,802,239
521,683
9,398,720
29,702,471
3,900,000
2,302,983
144,610
200,000
31,862,115
94,106,670
513,191,258

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Profit before Provision

20

Specific provisions for Classified Investment

General provisions for Unclassified Investment
General provisions for Off-Balance Sheet
Provisions for diminution in value of Investments
Shares
Provisions for Other Assets

Total Provision
37
Total Profit before Provisions for Taxation
Deffered Tax Expenses
Current Tax Expenses

38
13.2

Net Profit after Taxation

Appropriations
Statutory Reserve
Retained Earnings

16
17

2,041,164,321
(80,000,000)
(125,000,000)
(40,000,000)
-

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

(1,000,000)
(246,000,000)
1,795,164,321
19,180,209
705,415,819
1,070,568,293

(1,000,000)
(244,000,000)
1,565,800,099
13,472,886
734,617,680
817,709,533

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

313,160,020
504,549,513
817,709,533

41,792,899
711,535,429
753,328,328
39.07

31,358,986
504,549,513
535,908,499
29.84

Profit available for distribution

Retained Earnings from Previous year
Add: Retained Earnings of Current year
Earnings Per Share (EPS)

39

Chapter 7: Findings, Recommendation & Conclusion

7.1 SWOT Analysis of SJIBL
Shahjalal Islami Bank has the strength, weakness, opportunity and threat. Such as7.1.1 Strength of SJIBL:

Developed Management System: SJIBL has better management system which is always
responsible for better service.

More sources for investment: For adequate financial ability they can provide loan to the
more investment clients.

Straightforward and Reliable employee: All of the employees of SJIBL are sincere
reliable. They are always devoted themselves to the works for better customer service.

Better Goodwill: Shahjalal Islami Bank Limited has already achieved a goodwill among
the clients that helps it to retain valuable clients.

7.1.2 Weakness of the SJIBL:

SJIBL has lack of ATM booth.

Credit proposal evaluation process lengthy.

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No substantive use of annual confidential report to reward or to punish employee. Hence

employee becomes in efficient.

Server problem

7.1.3 Opportunity of the SJIBL:

Regulatory environment favoring private sector development

Wide banking network

Credit card business

The bank provides the better customer services

They can offer micro credit business for small business.

Many branches can be opened to reach the banks services in remote location.

7.1.4 Threat of SJIBL:

The common attitude of Bangladeshi clients to default.

Increased competition in the market for public deposit.
Market pressure for lowering the interest rate.
Bangladesh bank sometimes requires private commercial banks to be abide by such rules
and regulation which is not suitable every commercial bank.

7.2 Findings
Lack of strong monitoring unit.
Sometimes the process of information transferring to the management is lengthy.
Banks deal with documents not goods is one of the core principles of conventional
banking. However Islamic banking needs to with goods are imposed by Shariah.
Bank has limited ATM booth.
Lake of central AC for better working environment.
Generally investment clients do not come to the Islamic Banks only for Shariah purpose
rather for low transaction cost.
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 Lake of training facility of junior officers.

Fewer clients for trade business.
PC Bank server problem.

7.3 Recommendation
Proper and sufficient training is required for each and every staff to work with full
capability in the best way.
Proper monitoring is the pre-consideration for good collection. So monitoring unit is
required to be efficient enough to collect more deposit.
Staffs of branches require being sincere enough in their jobs. This will help in banking
procedure.
The brochures of the products and services of the branch can be mailed through the
welcome letters along with the status of the customers via courier.
Interpersonal relationship needs to be built among the employees and superiors.
Customer must be convinced to use token system, which will help the personnel of the
customer service work smoothly.
Complain of the customers should be decreased on zero level.
Assurance the accuracy of on line banking.
Increase the SJIBLs own ATM booth.
SJIBL requires resorting to massive image re-engineering in order to capture the public
perception to take the lead role in this sector.
SJIBLs investment processing should become easier than other conventional banks.
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 SJIBL should make its investment schemes more attractive for availing high-return
projects.
SJIBL should consider utilization of rural potentials from both efficiency and equity
grounds in the context of the present-day socio-economic conditions of Bangladesh.
Strong commitments and stepping up through experiment and implementation of
innovative ideas are the appropriate ways to do that.
SJIBL should deserve immediate attention in the promotion of the image of Shariah
based banks as PLS (Profit-loss-sharing)-banks.

7.4 Conclusion
Shahjalal Islami Bank Limited is one of the most renowned banks in the country.
SJIBL has introduced a new dimension in the field of innovative and benevolent banking in our
country. The bank has successfully made a positive contribution to the economy of Bangladesh
with in very short period of time. Its profit is gradually increasing. Therefore, Shahjalal Islami
Bank Limited (SJIBL) is trying to establish the maximum welfare of the society by maintaining
the principles of Islamic Shariah which is based on Quran and Sunnah. Profit earning is not
the only motive and objective of the banks overall policy rather emphasis is given in attaining
social good and in creation employment opportunities. Shahjalal Islami Bank Limited (SJIBL)
has been established with a view to conduct interest free banking to establish participatory
banking instead of debtor-creditor relationship and finally to establish welfare oriented banking
through its overall banking operations that would lead to a just society.
I hope SJIBL do more work for socio-economic development besides their banking business. To
keep pace with ever-changing uncertain domestic business environment and face the challenges
of revised global economic scenario, the bank should be more

pro-active and responsive to

introduce new marketing strategy to hold the strong position in home and abroad. For the future
planning and the successful operation in its prime goal in this current competitive environment I

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hope this report can provide a good guideline. I wish continuous success and healthy business
portfolio of Shahjalal Islami Bank Limited (SJIBL).

BIBLIOGRAPHY
Peter S. Rose, Sylvia C. Hudgins, Bank Management & Financial Services Sixth
Edition, McGraw-HILL International Editions
Shahjalal Islami Bank Annual Report 2009
Statement of Affairs, Shahjalal Islami Bank Limited (Banani Branch)

Banking Manuals of Shahjalal Islami Bank Limited

Articles of Shahjalal Islami Bank Foundation

Bank Bulletin
Web site: www.shahjalalbank.com.bd

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List of Terms used in the Report

SJIBL- Shahjalal Islami Bank Limited
IBCA- Inter Branch Credit Advice
IBDA- Inter Branch Debit Advice
HO- Head Office
L/C- Letter of Credit
LCA- Letter of Credit Authorization
IMP- Import
EXP- Export
TIN- Tex Identification Number
SWIEFT- Society for Worldwide Inter-bank Financial Telecommunication
B/E- Bill of Exchange
B/L- Bill of Lading
FCC- Foreign Currency Clearing
TR- Trust Receipt
FDD- Foreign Demand Draft
DD- Demand Draft
OD- Over Draft
FDR- Fixed Deposit Rate
P/O- Pay Order
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TT- Telegraphic Transfer

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