LIST OF ABBREVIATION

SIBL Social Islami Bank Limited BB Bangladesh Bank SME Small and Medium Enterprise SMS Short Message Service CSR Corporate Social Responsibility IT Information Technology ROA Return on Asset ROE Return on Equity IS Information System USA United States of America ATM Automated Teller Machine SE Small Enterprise ME Medium Enterprise PPG Product Program Guideline SOB State Owned Bank PCB Private Commercial Bank FCB Foreign Commercial Bank NBFI Non Bank Financial Institution GL-code Guide Line-code CIB Customer Information Burro MBL Mercantile Bank Limited PBL Premier Bank Limited DBL Dhaka Bank Limited NIM Net Interest Margin CDR Credit Deposit Ratio GDP Gross Domestic Product MFI Micro Financing Investment ACCION Americans for Community Co-operation in Other Nations

1|Page

1. INTRODUCTION ORIGIN OF THE REPORT
Modern banking system plays a vital role for a nation’s economic development. the last few years the banking world has been undergoing a lot of changes due to deregulation, technological innovations, globalization etc. These changes also made revolutionary changes of a country’s economy. Present world is changing rapidly to face the challenge of competitive free market economy. It is well recognized that there is an urgent need for better-qualified management and better-trained staff in the dynamic global financial market. Bangladesh is no exceptions of this trend. Banking Sector in Bangladesh is facing challenges from different angles though its prospect is bright now and in the future. Over

To meet up the growing needs of skilled and eligible managerial and executive manpower of in the country, Independent University Bangladesh has initiated the BBA (Bachelor of Business Administrator) Program which follows the international education quality standards and supervised and approved by the University Grants Commission (UGC). The objective of the BBA Program is to prepare individuals to develop the specific skills and judgment required for effective business operation. The “Internship” program is an obligatory part of the BBA Program to gather practical knowledge about actual business environment and activities. For gathering this knowledge I was assigned to Social Islami Bank Limited-Tongi Branch.

BACKGROUND OF THE REPORT
All over the world the dimension of banking has been changing rapidly due to deregulation, technological innovation and globalization. Banking in Bangladesh has to keep pace with the global change. Student is required to go through a three month internship program with a view to obtain adequate knowledge about practical business

2|Page

PECC 2003). Second. a number of studies find that SMEs are frequently faced with constraints and challenges (Bannock et al. infrastructure. Their small size imposes disadvantages: SME are debilitated in activities where the risks are high. The employees of this branch help me to perform practical jobs in different department at different desk which help me to gather some practical knowledge for various banking functions and complete this report. distortions in markets and government policy interventions. According to Lall (2000: 9–12). legal and administrative barriers and accessing network support. they account for over 70 per cent of total employment (Fan 2005. Nepal et al.B. labor. Shrestha 2005). During my trainee Period. Tongi Branch. I was attached with Social Islami Bank Limited. The inability to access credit is one of the major bottlenecks of SME. From the data of 23 transition countries. Brunetti et al. 1998). SME face „segmented factor markets wherein large firms are ‟ generally favored with access to inputs including credit. To relate the theoretical knowledge with the practice we the students of B.A were assigned achieve practical knowledge in different organization. as almost all of these economies have poorly developed banking sectors (EBRD 2004. 1. 2002. technology is fast-paced and relies on enormous investments. SME constitute over 97 per cent and contribute between 40–60 per cent of the total output or value-added to their national economies. Aidis and Sauka (2005) find that the constraints facing SME differ during different stages in the transition process. 2004. Beck et al. For most developing and transition economies. SME in general tend to face three sets of competitive challenges.world. 2002. and 3|Page . Hossain 1998. the common challenges for SMEs typically include financing. Kamesam 2003. Batra and Tan 2003. Today.3 LITERATURE REVIEW: Past studies have indicated that in the developing countries of South Asia. While most of the SME are located in rural areas. Batra and Mahmood 2001. These are related with their size. overcoming institutional.

Trade policies of the trading partners. The demand side factors like Purchasing power of consumers. He identified the underlying demand and supply-side factors exerting significant influences on the development of the market for SME. 2002a). It is apparent that problems related to power and credits are the two most significant ones. pro-SME policies are based on direct government support of SME that will help exploit social benefits from greater competition and entrepreneurship. ‟ Recognition of such problems of SME has led many developing countries to adopt proSME policies. subsidizing SME is perceived as a poverty alleviation tool (Beck et al. Razzaque (1994) in his paper identifies the factors fundamental to the development of market for products and then discusses the problems associated with them in the context of Bangladesh emphasizing the need for addressing these constraints to facilitate the growth of a SME sector. A wide array of constraints faced by SME has been briefly discussed in this report. since large firms with resources and connections can manipulate bureaucrats „to exploit the system . are some of the other problems that have adverse affect on SME development. have the capacity to boost employment faster than the larger firms. policies and institutions can be biased against SME. They basically include financial support and institutional improvements 6 that can absorb labor because proponents believe that SME. do not operate in isolation. Third. Unavailability of information. From this perspective. A. World Bank 1994. Physical infrastructure.technology and market information. Hossain (1998) in his paper highlighted the findings of those two studies. Fundamentally. Timely delivery and availability of goods etc and supply side factors like Resource constraints. Legal barriers. Its performance in this sector there have been a number of studies carried out on the SME sector of Bangladesh to identify its niche and also the constraints hindering the growth of this sector. Bangladesh is yet to utilize its potential and pick up. domestic environment etc. poor law and order conditions. Quality of products and services. Rather. they interact amongst themselves to aggravate the situation further. 2004. being more labor-intensive and dispersed. 4|Page . As a member of the developing countries. and transport cost.

Moktan (2007) analyses the constraints on SME in Bhutan by conducting interviews and a nationwide questionnaire survey of 168 micro and small firms. including lack of access to credit.5 SCOPE OF THE REPORT The scope of the report is limited to Tongi Branch. a weak technological base. excessive government regulation. especially in the fields of business by gathering practical experience. Faculty of Business. • To observe and analyze the performance of the specific branch and the bank as a whole. Pakistan etc. • To prepare students for facing the challenges of new world. Examining 14 variables related to the attitude or opinions of owners/ managers of 7. and the lack of business support services. Social Islami Bank Ltd. But the objective behind sending students in Practical orientation is something broader. 1. sector and ownership. studies were also carried out on other south Asian countries like Bhutan.4 OBJECTIVES OF THE REPORT The main objective of writing this report is to fulfill the requirement of the department. S. an arbitrary and exploitative tax administration system. SME with respect to business constraints and the survey indicated that the biggest constraints are related to restrictive business regulations. • To get clear ideas about the banking activities. It also provides a set of concrete strategic recommendations to address such constraints in order to promote SME growth for greater income generation and employment creation. Bari & Ali & Haque (2005) examined the key constraints faced by the SME sector in Pakistan. The scope of this report is as follows: 5|Page . The broader objectives of Practical Orientation are: • To familiarize students with the real life banking and to compare it with the banking theories that we have learnt. 1. significant differences in the severity level of constraints between urban and rural districts are observed with regards to size. only. Additionally.Besides Bangladesh. finance and infrastructure.

For this reason they cannot fully co-operate their experiences with me to complete this report. 1. Insufficiency of information is one of the major problems while writing this report. These include • • • Banker has to spend busy hours with their daily works. both Secondary and Primary data were used by me. magazines. The interviews mostly with the employees and clients. • To discuss about different types of credit facilities provided by Social Islami Bank Ltd.• To discuss about my working experience in general banking department. I faced some problems. 6|Page . Collection of Primary Data The primary data for this study were collected through questionnaire interview conducted in SIBL Tongi branch. were collected from secondary sources like: Annual Report (201I) of Social Islami Bank Ltd. LIMITATIONS OF THE REPORT During preparation of this report. that I have observed in the branch. Review of different journals. Only three months are not sufficient to visit all the desks & learn all things deeply. So some desks have remained unvisited. articles. The interviews were conducted with a pre-designed structured Collection of Secondary Data Data regarding the different departments of Social Islami Bank Ltd.6METHODOLOGY OF THE REPORT For preparing this paper. • • Website of Social Islami Bank Ltd.

Khulna division 7 branches. Every organization has its own secrecy that is not revealed to others. Chittagong division 21 branches. interviewing with the officials. central bank of the country. Dahaka-1000 . they did not discuss much information for the sake of confidentiality of the company. The bank has taken a renewed drive aiming at consolidating its business in more focused areas like SME and agro finance with emphasis on searching for alternative delivery channel under which ATM .internet banking and mobile based remittance payment system that are gradually introduce to distribute the SIBL services to the door steps of the customers . While collecting data i. Sylhet division 2 branches.• • Such a study was carried out by me for the first time. BACKGROUND OF SIBL Social Islami Bank Ltd is a second generation commercial bank started their operation since 22 November 1995. Since 2010 the bank was renamed Social Islami Bank Ltd.e. Rajshahi division 11 branches. 2. and focus the concept of modern Islamic Banking system.SIBL securities companies and SIBL investment limited. SIBL operated in Dhaka division 33 branches. Undertakes all types of banking transaction Provide support the development of trade and commerce in the country. SIBL has now 74 branches all over Bangladesh with two subsidiary companies.SMS banking . So. Barisal division 1 branch. Rangpur division 3 branches .SIBL also emphasis on employment generated and environment friendly Banking for fair distribution of resources over geographical area for sustainable growth of macro economy in the country. According to the sariah based principals the bank conducted their operation throughout the country. However. • Another problem that secondary data was not too much available and power failure. SIBL is a banking company registered under the company act 1994 with its head office 15 Dilkusha C/A.1. Earlier the bank name was Social Investment Bank. AN OVERVIEW OF SIBL 2.The bank operates as a scheduled bank under a banking license issued By the Bangladesh Bank. in-experience is one of the main factors that constituted the limitation of the study. As an Islamic bank SIBL is quite conscious of corporate social responsibility and always trying to 7|Page .

SOCIAL ISLAMI BANK CORPORATE SOLOGAN “Working Together for a Caring Society” 3. etc. The term SME bundles micro. In the banking area the investment means providing the loan. 2. SME INVESTMENT SME means Small and Medium Enterprise.2. annual turnover.1. small and medium enterprises and their definition and scope vary in terms of number of employees. Following in details about small and medium enterprise. 8|Page . So. The Bangladesh Bank for the first time released a ‘small and medium enterprise (SME) Credit Policies and Programs’ with a disbursement target of around Tk 240 billion for the calendar year 2010.participate in various social programs in the country. Usually commercial banks are defined as a bank whose main business is deposit-taking and making loans as an investment 3. paid-up capital. Bangladesh SMEs have assumed special significance for poverty reduction programs and potential contribution to the overall industrial and economic growth. we can understand about investment is the engaging the money and assets for business purpose to earn the profit. The bank is committed to serve the society at large through its family empowerment. INVESTMENT Investment means something engage for specific purpose.So.2. capital investment. from country to country. credit or advance for earning profit. Development of SMEs should also be based on graduation of micro enterprises. SME INVESTMENT OF SIBL 3. Small and Medium Enterprises (SMEs) are the backbone of the Bangladesh economy.

or smaller number of workers.2.00.000 Workers 10-25 10-25 25-100 Table 3.3.000 50.00.00.3.2.00.000-1. 3.000-1.00.2. a firm fall 9|Page . Without Small and Medium enterprise another two sectors in SME investment these are as follows:  Micro Industry  Cottage Industry 3.00.0000 50. SMALL ENTERPRISE SI 01 02 03 Sectors Service Trading Manufacturing Fixed asset 50.00.000 50. If on one criterion.1.000-50.00.00.0000 Workers 50-100 50-100 100-150 Table 3.2: Features of Medium Enterprise.000-1.50. MEDIUM ENTERPRISE SI 01 02 03 Sectors Service Trading Manufacturing Fixed asset 50.2. MICRO INDUSTRY In manufacturing.50.000-2.00.2.5 million and Tk 5 million. or with between 10 and 24. micro industry will be deemed to comprise enterprises with either the value (replacement cost) of fixed assets excluding land and building between Tk 0.00.000-50.2.1: Features of Small Enterprise.00.0000 1.

cottage industry will be deemed to comprise enterprises with either the value (replacement cost) of fixed assets excluding land and building of less than Tk 0. 3. export and import etc. electrical accessories. information technology. while it falls into ‘small’ category based on the other criterion. the firm will be deemed as in the ‘micro’ category. If on one criterion. engineering.3. recycling enterprises etc. the firm will be deemed as in the ‘small’ category. COTTAGE INDUSTRY In manufacturing. including household members. food & agro-based. while it falls into ‘micro’ category based on the other criterion. trading and service sectors. workshop.into the ‘micro’ category. Service: Enterprise providing services to other persons/organizations such as telecommunication. pharmaceutical. a firm falls into the ‘Cottage’ category. 3. sectors under SME Enterprises are as follows: • Manufacturing: Enterprises involving production process such as.5 million. SECTORS OF SME INVESTMENT IN BANGLADESH Under SME investment. transport. So.4. handicrafts. leather. • • Trading: Enterprises involving purchase & sales.2. hotel-restaurants. etc According to the industrial Policy 1999 had identified the following 14 sectors for SME investment. or with up to nine workers. the Bank invests in various manufacturing.  Agro-based industries  Export & Import  Transport  Artificial flower making  Computer software and information technology  Electronics 10 | P a g e .

79% 19.48 billion at the end of December 2010. specialized commercial banks. SME INVESTMENT IN DIFFERENT SECTORS The commercial banks and non-banking financial institutions (NBFIs) disbursed a loan amounting to BDT 537.27 billion at the end of December 2011 compared to BDT 511. SME ISVESTMENT BY DIFFERENT INSTITUTIONS Total SME loans increased by BDT 183.33% 10. RECENT PROSPECTS ON SME INVESTMENT 3.1.91% Table 3. Non-bank financial institutions.4. 2010 and 2011 in private commercial banks.79 billion or 35.5.40% 20.2.755 billion higher than the previous year.12% 10.93% to BDT 695.4. 11 | P a g e .88% 16.194 billion to small and medium enterprises (SMEs) in 2011 that was BDT 1.64% Financial 2010 33. Institutional category-wise SME loans performance at the end of December.1: Institutional category-wise SME loan 2009 and 2010 3. Frozen foods  Floriculture  Gift items  Infrastructure  Jute goods  Jewellery and diamond cutting and polishing  Leather  Oil and gas 3.21% 13. foreign commercial banks and state owned banks as follows: Institutions State Owned Banks Private Commercial Banks Foreign Commercial Banks Non-Bank Institutions Specialized Banks 20.4.90% 2011 31.32% 14.

around BDT 343.  Lack of skilled technicians and workers.  Absence of clear-cut government policies. In service sector.  Lack of research and development facilities. SME INVESTMENT IN SIBL Social Islami Bank is the Islamic sariah based commercial Bank . PROBLEMS OF SME INVESTMENT IN BANGLADESH  Lack of modern technology.3.” a senior official of the Bangladesh Bank (BB) said.58 billion higher than in 2010. 3. In trading sector.  High rate of interest on bank loans.5. "The banks and NBFIs were able to fulfill 96 percent of their target. 3.4.477 billion loan was disbursed in 2011 which was BDT 6. over BDT 35.In manufacturing sector.  Huge competition.  Lack of adequate investments.00 billion SME loan had been disbursed in 2011 which was BDT 1.Since the establishment to as yet the bank performing their banking activities successfully. BDT 151. Particularly in the investment 12 | P a g e .826 billion had been disbursed in 2011 which was BDT 6.  Loan default. adding that they could not achieve the target as the target set was much higher in 2011 than in 2010.  Irregular/inadequate supply of power.578 billion higher than the previous year.751 billion higher than that of the previous year.  Inadequate availability of raw materials.

00 103.0 3674. Since 2006 according to the principal of Bangladesh Bank which is “Prudential Guideline on Small and Enterprise (SE) Financing “ and SIBL follows this guide line and consisted the SME financing . As well as.00 108.  To remove the unemployment from our society.  To setup export and import business for earning foreign remittance. From the beginning time the bank provides services micro investment and micro enterprise in the non formal sector as the SME investment for customers. 3.sector they one step ahead from others. They provide the SME services for family empowerment. SIBL also invest in the Small and Medium enterprise because economic development is possible by the SME investment.  Aid to develop economical growth and strength in our country.00 2658. SME PERFORMANCE AT SIBL Year 2008 2009 2010 2011 Table 3.13 2638.13: SME performance of SIBL SME loan(Million) 2564.0 Profit 105. MY EXPERIENCE AT SIBL 13 | P a g e .00 109.  To provide the SME loan and facilities in Small and Medium enterprises for removing the poverty from society.6.00 4. SIBL has taken some pragmatic steps to remove the poverty from society and to create the employment in our country.  Aid to provide the SME loan to women entrepreneurs for their establishment.

25% DBL 1. we see the performance of the four But in 2008 and 2009 SIBL ROA is less than others three banks.32% 1.40% 14 | P a g e .82% MBL 21. cash section after that in investment section.1: Return on Assets among four Banks In this ROA table. they gave me some task which I had to do for my learning and also for banking purpose.00% DBL 22.20% PBL 20.25% 1.72% MBL 1.39% 2. they did not want to give me so much authority to do any kind of work.33% 1.24% 1.I have joined at SIBL at Tongi branch in 9 June 2012. Return on Equity Capital (ROE) = Net Income / Total Equity Capital Topics Return on Equity Year 2008 SIBL 10. COMPARISON OF RATIOS 5.1.59% Income / Total Assets Table 5.2.08% 2.  Work with cash division at SIBL.Salim Mizi appointed me and last three months I worked in the account opening section. And we see the result. COMPARATIVE ANALYSIS 5. They always try to provide hardship for growing up their ROA. by this they will take the new policies to implement on their everyday banking work.68% 1.1. So that I have learned the different work as follows:  Work with account opening section.46% 1. Return on Assets (ROA) = Net Income / Total Assets Topics Return (ROA) on = Assets Net Year 2008 2009 2010 2011 SIBL 0.Then E.45% 1.25% 1.  Learn investment banking at SIBL. For that purpose. 5.1.O & Operation Manager Mr.54% 1.  Learn about SME investment. But as an intern.2.45% PBL 1. 5.57% 1.1.

6.1.31% 11. MBL & SIBL.00% 24.04% 24. The DBL has individually performance on this ROE is so good.55% Table 5.2.40% 25. Collection of Primary Data The primary data for this study were collected through questionnaire interview conducted in SIBL Tongi branch. possibilities and limitations of SME Investment section in Social Islami Bank Limited.3. regarding SME growth.Capital (ROE) = Net Income / Total Equity Capital 2009 2010 2011 12. So the PBL.00% 23. we see the ROE. RESEARCH 6. The interviews mostly with the employees and clients.2.04% 24. The interviews were conducted with a pre-designed structured 15 | P a g e .14% 15. Family empowerment by SMEs. STATEMENT OF THE PROBLEM To focus on the opportunities. Few comprehensive studies have been done in the outside and inside of Bangladesh. 6. So. three banks will develop this sector very quickly.2: Return on Equity among four Banks In this table. METHODOLOGY 6.51% 22. To see if the problem can be partly or fully solved .3.32% 22.But so far no studies regarding SME investment of SIBL have been found.00% 24. PRIOR RESEAECH Research starts their investigation by examining secondary data. the every bank has a good position than SIBL. 6. SME impacts on Bangladesh economy & so on.1. DATA COLLECTION METHOD .45% 23. the few have been reviewed and none of them were found specifically written in this particular issue.

because each member of a population has an equal chance of being included the sample. articles.3. SAMPLE SIZE After preparing the sample frame the size of sample were seeking interviews to 50 people having services from SME department.5. magazines. Among this sample size 85 percent are male and 15 percent are female responded.3. 6. • • Website of Social Islami Bank Ltd. 6.4. ANALYSIS OF DATA 16 | P a g e .Collection of Secondary Data Data regarding the different departments of Social Islami Bank Ltd. SAMPLING UNIT/POPULATION The population of this study was defined as the employees and clients of SIBLs Tongi branch those are having the services more than 3 months and from Head office. probability sampling is selected and it is simple random sampling.6.3.3. 6. The sample frame was derived from the list of employees and clients in Tongi areas. 6.3. 6. SAMPLING PROCEDURE To accurately determine the probability. Review of different journals.3.2. SAMPLE FRAME The sample frame of this study was consisted the SIBLs employees and clients at Tongi branch. were collected from secondary sources like: Annual Report (201I) of Social Islami Bank Ltd.

6. 17 | P a g e . excel was used in the personal computer . Finally I present my study in front of audiences.The statistical tools and techniques are used like hypothesis testing. limitation. Under the hypothesis techniques the z-test are applied in the analysis of data according to the sample size. THE RESPONDENTS AGE Out of total respondents divided into four groups. Figure 6. these are (i) 20-30 years. Based on my analysis I made findings. RESPONDENTS GENDER Among the respondents 85 percent are male and 15 percent are female responded .4.5: Gender of respondents 6.For analysis the data Microsoft office like word. (ii) 30-40 years (iii) 40-50 years and (iv) Above 50 years. recommendation and conclusion. In below graphically presentation of respondents’ age group is given.But only 40 people positively responded and remaining of them are provided no opinion and disagreed.5.

5.6. HA: SIBL provides SME loan to women entrepreneurs with easy condition. 4. 2. HA: SIBLs SME department use advertisement to attract the customers. HA: SIBLs SME section uses proper system to meet the clients demand. HA: SIBLs SME investment has positive impact to increase the level of loan and advance growth. 7. HA: SIBL strictly follow proper rules and regulation of BB against SME investment. HYPOTHESIS DEVELOPMENT 1.6: Respondent’s age 6.Figure 6. 18 | P a g e . 6. HA: SIBLs SME investment has positive effect on the bank profitability. HA: SIBLs profit rate is more reasonable than other banks for SME investment. HA: SIBLs SME insurance policy reduces investment risk. 3. 8.

5 HA: µ > 2.1.28 5.36 Table 6.21 7.23 6. HYPOTHESIS TESTING H1 1=Strongly Disagree 2= Disagree 3=No opinion 4= Agree 5=Strongly Agree Total Average Standard Deviation Z-test value 2 6 5 12 25 190 3.51 3.58 1.47 At 5% level of significance.47 H2 3 4 10 13 20 193 3.21 H7 6 4 8 20 12 178 3.645 Since Z cal> Z tab the null hypothesis is not accepted.24 1.5 N = 50 Here X = 3.39 H6 4 6 10 17 13 179 3.86 H8 9 15 11 10 5 137 2.23 7.05 =1.50 H4 8 12 5 10 15 162 3.6.7: Hypotheses Testing 6.32 7. So at 5% level of significance.74 1. follows Z .7.47 H5 3 7 13 7 20 194 3.8.8 σ = 1.95 H3 5 7 9 15 14 176 3.88 1.52 1. it can be said that SIBLs SME investment has positive effect on the bank profitability 19 | P a g e .distribution 4. H0: SIBLs SME investment has negative effect on the bank profitability.8 1.23 Z cal= ( X -µ)/ ( σ /√n) = 7. Ho: µ = 2.25 1.56 1.86 1. HA: SIBLs SME investment has positive effect on the bank profitability.31 5.

it can be said that SIBLs SME investment has positive impact to increase the level of loan and advance growth.5 N = 50 Here X = 3.86 σ = 1. H0: SIBL not strictly follows proper rules and regulation of BB against SME investment. Ho: µ = 2. HA: SIBL strictly follows proper rules and regulation of BB against SME investment. So at 5% level of significance.52 20 | P a g e .distribution 4. HA: SIBLs SME investment has positive impact to increase the level of loan and advance growth.8.8.5 N = 50 Here X = 3.645 Since Z cal> Z tab the null hypothesis is not accepted.05 =1.6. follows Z . H0: SIBLs SME investment has no positive impact to increase the level of loan and advance growth.5 HA: µ > 2.5 HA: µ > 2. Ho: µ = 2.2. 6.95 At 5% level of significance.21 Z cal= ( X -µ)/ ( σ /√n) = 7.3.

8.5 HA: µ > 2.5 HA: µ > 2.distribution 4.σ = 1.8. it can be said that SIBL strictly follows proper rules and regulation of BB against SME investment.24 σ = 1. Ho: µ = 2.51 Z cal= ( X -µ)/ ( σ /√n) = 3. follows Z .47 At 5% level of significance.distribution 4. So at 5% level of significance. 6. 6.05 =1.4.31 Z cal= ( X -µ)/ ( σ /√n) = 5. H0: SIBLs profit rate is not more reasonable than other banks for SME investment HA: SIBLs profit rate is more reasonable than other banks for SME investment.05 =1. H0: SIBL not provides SME loan to women entrepreneurs with easy condition. HA: SIBL provides SME loan to women entrepreneurs with easy condition.645 Since Z cal> Z tab the null hypothesis is not accepted.5. it can be said that SIBLs profit rate is more reasonable than other banks for SME investment.645 Since Z cal> Z tab the null hypothesis is not accepted.5 21 | P a g e . So at 5% level of significance. follows Z . Ho: µ = 2.50 At 5% level of significance.5 N = 50 Here X = 3.

H0: SIBLs SME section not uses proper system to meet the clients demand. follows Z .05 =1.32 Z cal= ( X -µ)/ ( σ /√n) = 7.distribution 4. HA: SIBLs SME section uses proper system to meet the clients demand.88 σ = 1.23 Z cal= ( X -µ)/ ( σ /√n) = 6. So at 5% level of significance. HA: SIBLs SME insurance policy reduces investment risk. it can be said that SIBL provides SME loan to women entrepreneurs with easy condition. H0 SIBLs SME insurance policy not reduces investment risk. So at 5% level of significance. Ho: µ = 2. follows Z . 22 | P a g e .8.58 σ = 1.645 Since Z cal> Z tab the null hypothesis is not accepted.5 N = 50 Here X = 3.7.39 At 5% level of significance. 6.05 =1.645 Since Z cal> Z tab the null hypothesis is not accepted.N = 50 Here X = 3. 6.distribution 4.6. it can be said that SIBLs SME section uses proper system to meet the clients demand.21 At 5% level of significance.8.5 HA: µ > 2.

follows Z .36 At 5% level of significance. 7.distribution 4.25 Z cal= ( X -µ)/ ( σ /√n) = 1.645 Since Z cal< Z tab the null hypothesis is accepted.8.86 At 5% level of significance.Ho: µ = 2.8.28 Z cal= ( X -µ)/ ( σ /√n) = 5. 6.5 N = 50 Here X = 3.74 σ = 1.5 HA: µ > 2. FINDINGS 23 | P a g e .05 =1.05 =1.645 Since Z cal> Z tab the null hypothesis is not accepted. follows Z . HA: SIBLs SME department use advertisement to attract the customers.distribution 4. it can be said that SIBLs SME insurance policy reduces investment risk. So at 5% level of significance. H0: SIBLs SME department not use advertisement to attract the customers.5 N = 50 Here X = 2. it can be said that SIBLs SME department not use advertisement to attract the customers. So at 5% level of significance. Ho: µ = 2.5 HA: µ > 2.56 σ = 1.

 SME investment has effect to increase the loan and advance growth. The main objectives of the world famous and successful banking organizations are to making of profit through addressing the clients time to time with new pieces of service instruments.  SIBL provides insurance policy against SME investment.  SIBL strictly follows the rules and regulation of Bangladesh bank. from the employee feedback it is the positive impact to increase the advance growth.  SIBL focuses on encouraging more women entrepreneurs for SME investment. STRATEGIC ALTERNATIVES AND RECOMMENDATION The banks are actually service organizations. To achieve the success of SIBL the SME investment plays a great role of banks profitability. More advertisement is to increase the customer.  To increase the level of customer the bank provides incentives SME products and imposed the reasonable profit rate. So for SME investments they are applying proper system by using modern technologies like they are making on line CIB inquiry against SME lenders. Thus. 24 | P a g e .  From the customers feedback the SIBLs profit rate is more reasonable from others because their goal is that less profit more customer. So the following recommendations are:  SIBL should improve its SME service quality otherwise it will fall back of other private commercial bank. But SIBLs SME investment department has less advertising promotion 8. Women entrepreneurs get loans with easy provision.  SIBLs have their IT departments. For the SME investment the SIBL executives properly follows the rules and regulation of Bangladesh Bank.

Moreover.  The government should encourage MFIs (Micro Financing Investment) become micro finance banks to promote rural areas. SIBL follows Islamic sariah basrd principal in the banking criteria and providing the loans and advances as SME investment to follow the sariah.  Social Islamic Bank should always monitor the performance of its competitors. CONCLUSION Social Islami Bank Limited is an Islamic sariah based commercial bank. So the SMEs need more policy support and hand-holding by large firms and the financial sector.Day by day the bank upgrading their SME investment services. However. The government may link SMEs with large industries or enterprises in the industrial policy. So.  The government establish credit guarantee fund for investment as in Japan. The government need to dedicate support by way of greater credit availability.  The SIBL should upgrade insurance policy in terms of credit risk of lenders and investment in the case of SME financing.  Use appropriate techniques in evaluating customer need and convenience professionally. SME investment is the vital features of SIBL . SIBL running successfully and for its good investment performance the bank occupies 2nd position in the Islami Banking Sector.  Effective discipline for all branches. in our country SME.  Bank should provide advances like SME and others investment towards the true entrepreneur with reconsidering conventional system of security. SIBL should differentiate its services adopting the modern facilities and diversify product. 9. the whole process should be completed within an acceptable time. facilitating technology and harnessing the 25 | P a g e . SME investment plays a great role of our economy and it is the most inevitable section of any commercial bank. are interrupted by many problems.

Issue: 02 10. http://www. SIBL needs more active support and continued cooperation of Bangladesh Bank. April. 2012. “SIBL SME and Agriculture investment”. valued partners. Vol: 01.4. Issue: 01.4. “SIBL Highlights”.3. http://www.org/ 11. BILIOGRAPHY 10.1. 2012. Vol: 01. 10. Monthly Review of News & Events. 11. Monthly Review of News & Events. clients and the community at large in accomplishing difficult tasks ahead of it.qfinance. June. “SIBL E-Highlights”. June. 2011.com 11.2.1. April-May.com 12.2.siblbd.5. Vol: 01. 10. executives and employees of the bank. “Banking sector outlook”. 10. Furthermore. http://www.com 11. June-July. 2011. ministry of finance and other government agencies.ubs. 2011.3.benefits of agglomeration could make noticeable differences to SME performances. Issue: 02. WEB SITE 11. http://www. Prospects & Challenges.bangladesh-bank. APPENDIX 26 | P a g e . 10. “SIBL Highlights”.

SIBL strictly follow proper rules and regulation of BB against SME investment? Strongly disagree Disagree No opinion Agree Strongly agree 4. SIBLs profit rate is more reasonable than other banks for SME investment? Strongly disagree Disagree No opinion Agree Strongly Agree 27 | P a g e . SIBLs SME investment has positive effect on the bank profitability? Strongly Disagree Disagree No opinion Agree Strongly agree 2. SIBLs SME investment has positive impact to increase the level of loan and advance growth? Strongly Disagree Disagree No opinion Agree Strongly agree 3.Sample Questionnaires Name of Respondent: ___________________________________________ Gender: □ Male □ Female Occupation: ____________________________________________________ 1.

SIBLs SME department use advertisement and effective marketing promotion to attract the customers? Strongly disagree Disagree No opinion Agree Strongly agree Comments: ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Signature Date 28 | P a g e . SIBL provides SME loan to women entrepreneurs with easy condition? Strongly disagree Disagree No opinion Agree Strongly agree 6. SIBLs SME section uses proper system to meet the clients demand? Strongly disagree Disagree No opinion Agree Strongly agree 7.5. SIBLs SME insurance policy reduces investment risk? Strongly disagree Disagree No opinion Agree Strongly agree 8.