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approved December 13, 2009 _________________________________ Mr. Zeeshan Abedin, Lecturer School of Business Independent University Bangladesh

A WORKING REPORT ON GENERAL BANKING PRACTICES OF AL-ARAFAH ISLAMI BANK LIMITED by Tanvir Ahmed Rony ID: 0420308 An Internship Report Presented in Partial Fulfillment of the Requirements for the Degree Bachelor of Business Administration INDEPENDENT UNIVERSITY BANGLADESH December 13, 2009

December 13, 2009. Mr. Zeeshan Abedin, Lecturer School of Business Independent University, Bangladesh. Subject: Submission of internship report. Dear Sir, With due respect, I, Tanvir Ahmed Rony, ID: 0420308, would like to inform you that, it is a great pleasure for me to submit the report on “A Working Report on General Banking Practices of Al-Arafah Islami Bank Limited”, as a requirement for BBA 499 program. While conducting the report, I have gathered lots of knowledge about credit and many unknown facts, problems and prospects of banking sectors like Islamic banking and conventional banking and the activities of Al-Arafah Islami Bank Limited in Bangladesh. Therefore, I firmly believe that, this report will be able to meet your approval. I would genuinely appreciate to make further corrections where it seems necessary by you. Your kind advice will encourage me to conduct more works in future. Sincerely Yours ……………………. Tanvir Ahmed Rony, ID: 0420308

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited Acknowledgement At the very beginning, I would like to express my sincere gratitude to Allah, who has given me the chance to complete my internship report in a very comfortable manner. My gratitude and thanks goes to my respected supervisor Mr. Zeeshan Abedin, Lecturer, School of Business, who co-operated me all through the times for completing my internship report. I want to mention my special gratitude and thank to Mr. Rushdi Md Rezaur Razzaque,Senior Lecturer,School of Business, without the special guideline of whom, it would be impossible on my part to complete my internship report successfully. I have conducted my report on” A Working Report on General Banking Practices of AlArafah Islami Bank Limited” for which, I want to express special thanks to all the employees of branch of Progati Sarani of Al-Arafah Islami Bank Limited . I am also acknowledging the co-operation and support that I received from the. I want to mention special thanks to HRD of Al-Arafah Islami Bank Limited for allowing me to do my internship in this bank. I also want to mention two names who’s all over inspiration and guidelines were there during my internship period for completing my report. Those are • Mr.Manjur Hasan,Vice President • Mohammad Oliullah, IT-in Charge Officer There is no doubt that, because of their help, I, as an inexperienced person was able to accomplish the report. These persons gave me their valuable time whenever I needed their help. This report is so a blessing of the individuals who gave the valuable information of their banks other than This Bank. Lastly, I would like to express my special honor to Mr.Nadim Jahangir, Director, School of Business for his co-operation. 4

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited TABLE OF CONTENTS Contents Introduction Purpose of the Study Al-Arafah Islami BankLimited: An Overview Hyrarchy of the Management of Al-Arafah Islami BankLimited General Banking Functions of Cash Department Accounts opening process Clearing Process Mudaraba SWOT Analysis of Al-Arafah Islami Bank Work Performed By Me Findings and Analysis Recommendations Conclusion References Page No 1 2 2 3 5 6 8 9 10 12 14 16 18 19 5

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited Introduction: At birth, Bangladesh inherited an interest based banking system, which was introduced here earlier when the country was a part of British Colony. Since its inception Bangladesh saw a new trend in banking both at home and abroad. Islamic banking was successfully tries in Egypt. After the Mit Ghamar Model, Naser Social Bank was in the process of establishment. During the seventies, Islamic Development Bank (IDB) and a number of Islamic banks at national levels were established in the Islamic world. At home, the Islamic groups were vigorously working for adoption of Islam as the complete code of life. They found Islamic banking in ready form of immediate introduction. Two professional bodies “Islamic Economics Research Bureau” (IERB) and “Bangladesh Islamic Bankers Association” (BIBA) were taking practical steps for imparting training on Islamic Economics and banking to a group of bankers and arranging some national and international seminars/workshops to mobilize local and foreign people and attract investors to come forward to establish Islamic bank in Bangladesh. Their professional and rightthought activities were reinforces by a number of Muslim entrepreneurs working under the aegis of Muslim Businessman Society 9MBS). The body concentrated mainly in mobilizing equity capital for the emerging Islamic bank. Due to continuous and dedicated work of the above groups and individuals and active support from the Government, Islamic banking could be established in early eighties. Islamic banks have been operating in Bangladesh for about one and half decade alongside with the traditional banks. Out of over 39 banks only five banks (including one foreign Islamic bank) and two Islamic banking branches of a traditional bank, Prime Bank Limited (PBL) have been working on Islamic principles. Like any other traditional commercial banks, they do mobilize deposits and produce loans. But their modes of operation, based on shariah, is different from the other traditional commercial banks. 6

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited Purpose of the Study: The purpose of the study is to analyze the general banking procedures, criteria, activities and overall client’s feedback and meet their demand in the context of AlArafah Islami BankLtd. For fulfilling the requirement for the degree of BBA. Al-Arafah Islami BankLimited: An Overview To achieve Islamic ideology Al-Arafah Islami BankLtd was established (registered) as a public limited company on 18 June 1995. The inaugural ceremony took place on 27 September 2005. Some very renowned Islamic Personalities and pious businessmen of the country are the sponsors of the bank. The Bank is committed to contribute significantly in the national economy. It has made a positive contribution towards the socio economic development of the country by opening 46 branches on which 16 authorized dealer (AD) throughout the country. On June 2009 the manpower of the Bank was 1153. To render improved services to the clients imbued with Islamic spirit of brotherhood peace and fraternity and by developing an institutional cohesion. The Bank is committed towards establishing welfare oriented banking system, economic uplift of the lower-income group of people, create employment opportunities. 7

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited Senior Executive Vice-President Executive Vice-President Senior Vice-President First Vice-President Vice-President Senior Asstt. Vice-President First Asstt. Vice-President Asstt. Vice President Senior Staff Officer Staff Officer Officer Grade - I Probationary Officer Officer Grade - II Assitant Officer Office Assistant Driver Security Staff Office Attendant HIERARCHY OF THE MANAGEMENT OF AL‐ARAFAH ISLAMI BANK 8

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited General Banking ____________________________________________________________ _____ General banking is the starting point of all the banking operations. It is the department, which provides day-to-day services to the customers. Everyday it receives deposits from the customers and meets their demand for cash by honoring cheques. It opens new accounts, remit funds, issues bank drafts and pay orders etc. Since bank is confined to provide the services everyday, general banking is also known as ‘retail banking’. FUNCTIONS OF THIS DEPARTMENT 1 G E N E R A L B A N K I N G 3 4 5 6 7 CHEQUE CLEARING SECTION REMITTANCE SECTION FDR SECTION ACCOUNTS SECTION ESTABLISHMENT SECTION 2 CASH SECTION ACCOUNTS OPENING SECTION CASH SECTION Cash department is the most vital and sensitive organ of the branch as it deals with all kinds of cash transactions. This department starts the day with cash in vault. Each day some cash that is opening cash Al-Arafah Islami Bank are transferred to the cash officers from the cash vault. Net figure of this cash receipts and payments are added to the opening cash Al-Arafah Islami Bankance. The figure is called closing Al-Arafah Islami Bank. This closing Al-Arafah Islami Banka is then added to the vault. And this is the final cash Al-Arafah Islami Bank figure for the bank at the end of any particular day. Cash department in the Al-Arafah Islami Bank, Federation Branch is authorized dealer of foreign currency, so it can deal with buying and selling of foreign currency. 9

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited Functions of Cash Department Cash payment is made only against cheque Cash Payment This is the unique function of the banking system which is known as “payment on demand” It makes payment only against its printed valid Cheque It receives deposits from the depositors in form of cash Cash Receipt So it is the “mobilization unit” of the banking system It collects money only its receipts forms Cash payment or Cheque cancellation process Step 1 Receiving Cheque by the employee in the cash counter Verification of the followings by the cash Officer in the computer section Step 2 Date of the Cheque (it is presented within 6 month from issue date) Issued from this branch Amounts in figure and sentence written does not differ Signature of the drawer does not differ Cheque is not torn or mutilated Step 3 Step 4 Gives pay cash seal and sends to the payment counter Payment officer makes payment Books maintained by this section Vault Register Cash Receipt Register Cash Payment Register Rough Vault –Register It keeps account of cash Al-Arafah Islami Bankance in vault in the bank. Cash receipt in whole of the day is recorded here. Cash payments are made in a day are entered here. Cash calculation for final entry in vault register is done here, 10

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited as any error and correction here is not acceptable. Cash Al-Arafah Islami Al-Arafah Islami Bankance here is compared with vault Bankance Book register. If no difference is found, indicates no error. In book 1 and book 5, notes and currency are recorded by mentioning their denominations and number of each denomination. Same set of these books is maintained separately for both local and foreign currency. ACCOUNT OPENING This sections opens accounts. Selection of customer is very important for the bank because banks success and failure largely depends on their customers. If customer is bad, they may create fraud and forgery by their account with bank and thus destroy goodwill of banks. So, this section takes extreme caution in selecting its customer base. Accounts opening process Step 1 Receiving filled up application in bank’s prescribed form mentioning what type of account is desired to be opened The form is filled up by the applicant himself / herself Step 2 Two copies of passport size photographs from individual are taken, in case of firms photographs of all partners are taken Applicants must submit required documents Application must sign specimen signature sheet and give mandate Introducer’s signature and accounts number – verified by legal officer Step 3 Step 4 Step 5 Authorized Officer accepts the application Minimum Al-Arafah Islami Bankance is deposited – only cash is accepted Account is opened and a Cheque book and pay-inslip book is given 11

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited Special Caution or the documents from the Account opener of the following types Partnership deed must be taken Partnership Firm Mandate from the partners is essential – indicating who will operate the account Certificate of Incorporation Public Limited Company Copy of Memorandum and Articles of Association Certificate of Commencement Copy of Resolution of the Board of Directors Certificate of Commencement is not necessary Private Limited Company Certificate of Incorporation Copy of Memorandum and Articles of Association Copy of Resolution of the Board of Directors Types of Account maintained by this branch – comparative discussion Types of Types Deposits Accounts of Characteristics Generally opened by businessmen No interest is provided for deposited amount Overdraft is Allowed in this account Minimum opening Al-Arafah Islami Bankance is TK.5000. If it falls below TK.1000 an incidental charge of TK.50 is charged Any one except limited company can open 7.5% interest is provided to depositors Minimum Al-Arafah Islami Bankance is Tk.500 Twice withdrawal in a week is allowed, for more withdrawal depositors is not entitled any interest Current Account (CD) Demand Deposits Mudaraba Savings Deposits (MSD) Time Deposits Can be opened by all Mudaraba 8-10.5% interest – discussed below Term Deposit In case of withdrawal before maturity the previous Receive maturity period is considered to pay interest – it is (MTDR) known as Break Down Payment 12

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited Short Notice Deposit (SND) Generally opened by big business firm Interest depends on the amount deposited Dormant account If any account is inoperative for more than one year is called dormant account. To operate these accounts manager permission is necessary. CHEQUE CLEARING This section receives all kinds of Cheques in favor of the client for clearing as the part of their banking service. After receiving the Cheque it is necessary to endorse it and cross it specially. Basically the Cheques for clearing are of following types: Types Inward Clearing Cheque Explanation Clearing Process Cheques received from the Party’s A/C ------------Dr. IFIC General Account ------------Cr. Clearing House, of our bank OBC (Outward Bills for Collection ) Cheques of other branch of AlArafah Islami Bankwithin our clearing house area These Cheques are directly sent to the respective branch and request them to send IBCA. When IBCA comes, then customer’s accounts are credited for the amount of the Cheque. Outward Clearing Clearing Cheque These Cheques are sent to clearing Cheques of another house via the Motijheel Branch. When bank within our drawee bank honor the Cheques, then clearing house area the account of Cheque depositors are credited. 13

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited These Cheques are cleared in two ways: Firstly, if any branch of our bank exists within the clearinghouse area of drawee bank, then we send the Cheque OBC Cheques of another to that branch of our bank and that (Outward bank which is branch collects the proceeds through Bills for situated outside the clearing house formalities and sends an Collection IBCA to us. clearing area ) In second way, if there is no branch of our bank, then we directly sends the Cheque to the drawee bank and request them to send the proceeds by TT, MT, or DD or by in any other means From other branch of Al-Arafah Inward Bills for Islami Bank Collectio n From another bank outside the (IBC) clearinghouse These Cheques are settled by sending IBCA, i.e. debiting depositor’s account and crediting sender’s branch account. These Cheques are settled debiting depositor’s account and sending DD, MT, TT in favor of sender’s bank Mudaraba Most of the Islamic banks and financial institutions are using "Mudaraba" as an Islamic mode of financing, and most of their financing operations are based on "Mudaraba". That is why this term has been taken in the economic circles today as a method of banking operations, while the original concept of "Mudaraba" is different from this assumption. "Mudaraba" is, in fact, a term of Islamic Fiqh and it refers to a particular kind of sale having nothing to do with financing in its original sense. If a seller agrees with his purchaser to provide him a specific commodity on a certain profit added to his cost, it is called a "Mudaraba" transaction. The basic ingredient of "Mudaraba" is that the seller discloses the actual cost he has incurred in acquiring the commodity, and then adds some profit thereon. This profit may be in lump sum or may be based on a percentage. 14

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited Uses of Mudaraba Mudaraba can be used in following conditions Short / Medium / Long Term Finance for: Raw material Inventory Equipment Asset financing Import financing Export financing (Pre-shipment) Consumer goods financing House financing Vehicle financing Land financing Shop financing PC financing SWOT Analysis of Al-Arafah Islami Bank Strengths • • • • An exclusive Islamic bank. One of the largest Islamic Banks in Bangladesh Strong growth of its Islamic banking SBU. Al-Arafah Islami Bank Providence Certificate is a long-term investment certificate specially designed to cater to the needs of corporate and business concerns for purposes of investing their Provident, Pension and Gratuity Funds. As any prudent investor, your main concerns would be total security along with the best returns possible, especially as these funds are a trust from your employees and one that bears an important responsibility. 15

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited ••• Dedicated and professional staff Shariah board of renowned scholars Healthy working environment Weaknesses • High charges for different activities such as online or Demand Draft as compared to competitors. lack of promotions and advertising of their products and services. Lengthy & extensive documentation Centralized procedures making process slow Weak marketing strategy, Target market not identified The Islamic economic system is not something that can work in isolation of the geopolitical and legislative system, as well as, and more importantly the society's behaviors towards the injunctions of Islamic Shariah in personal and collective matters. Accordingly, one can easily imagine that in an economy whereby most of the businessmen are not honest in fairly presenting the financial statements of their businesses, how difficult it is to introduce a profit-and-loss sharing based financial solution. ••••• •• Al-Arafah Islami BankLimited has no Credit card facility Restricted Shariah based policies 16

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited Opportunities • • . • • • Coming up with. Products for the SME to targeting the medium level customers. Doing business with companies having Islamic mindset. Ie Islamic financial Institutions. Increase branch network within the country. Threats • New competitors setting up their Islamic banking sections and they have the infrastructure, skill, ability, resources & attitude to capture the market more than the Al-Arafah Islami Bank. Govt. policies are mostly for conventional banking system not for specially designed for Islamic banking. Fears on the credibility of Islamic banking ethical compliance and monitoring systems. Reviewing this SWOT analysis from time to time would help evaluate the bank's position. It would help the management in comparing their strengths of the past with those of the present and to what extent the management has been able to overcome the weaknesses. House financing sector can be targeted to maximize the profit. Growing demand of Islamic financial product and services. • • Work Performed By Me I joined Al-Arafah Islami BankLtd, , Sahiwal 18th Sept. 2009. First day I reached there at 9’O clock and reported to manager who introduced me about the functioning of the branch and its staff. During these two months I worked in different sections of the branch to learn the maximum practices of banking system. 17

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited GENERAL BANKING First of all, I was asked to work in different sections of General Banking. Here I was attached Mr. Ayaz Ahmad who has good command on this section. Here we dealt with new customers who wanted to get information about the branch and will to deal with the branch. This is a very interesting department because here we met people of different types and deal with them accordingly. In this section, I observed the following functions: CHEQUE AT COUNTER. A cheque is presented on the counter with the two signatures of the bearer on the back of the cheque. Operation’s manager verifies the following points: The cheque number ,Cheque Date ,The cheque signature with the signature specimen card position in the officer signature ,received at the time of opening the customer’s account in the presence of the officer ,Cheque amount in figure and words ,Branch stamp in the front of the cheque ,Check the nature of cheque, bearer cheque, cross cheque etc. CHEQUE PAYMENT PROCEDURE. Receiving and scrutinizing the cheque Fixing the stamp Scripting and receipt by the authorized officer ISSUANCE OF DEMAND DRAFT A demand draft is provided to the client in whom he has to specify that on which bank it is drawn. The amount both in words and figures is written on the demand draft. BILLS COLLECTIONS DEPARTMENT I spent second week of my training in bills collection department. Miss Sumaira is the in charge of this section. Here we collected utility bills like electricity bill. 18

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited BILLS REMITTANCE DEPARTMENT. It is most important and interesting department. This section deals with the transfer of money from one branch to another branch. Nearly six drafts issued daily from this department. Here I know the amount transferred and what is the procedure. This department also deals with T.T. transfer of money. I worked nearly three weeks in this department. DEPOSIT DEPARTMENT. Deposit department deals with current, saving fixed accounts for a long period. In current account the bank does not offer any interest you can deposit or withdraw any amount during banking hours. In PLS account we can only withdraw up to Rs. 25OOO/ without notice if you want to withdraw more than a notification must he given to the bank. In Fixed account people normally of old age are more interested because they get a lump sum amount every month as a markup or interest. These accounts are normally for two to five years. Findings and Analysis The findings and analysis of Al-Arafah Islami BankLimited is as follows: Good Image: Al-Arafah Islami Bankhas the benefit of having better reputation and image because of having the strength of Abu Dhabi consortium and under the leadership of His Highness Sheikh Nayan Mabarak Al-Nahayan. People feel lesser risk for investing their money with the bank. World Class Services: The bank is providing its customers world class and excellent services. This is the main reason for the growth of the bank. 19

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited Coordination: Meetings are held very frequently which keeps the head-office well informed about the performance of its branches and also provides officials with the opportunity to communicate, discuss and deals with different situations as they arise. Employee Behavior: The employees of Al-Arafah Islami BankLimited are very committed to their work. They are very hard working and punctual but some of them have problems with he environment of the bank and they feel that the branch environment is not very encouraging. The performance of Al-Arafah Islami BankLtd it is considered that on the whole bank is contributing a lot towards the industrial development and capital formation in the country. As it is exhibited from the data regarding the banks financial performance as shown in this report that the bank is sharing major banking business of the country. Further the policies and schemes as are introduced and carried on by the bank are of great source of help in industrial and trading growth. All these things reflect the great and valuable efforts on the part of executive command of the bank which is finally responsible for the productive performance of the bank. But as it is said that nothing is perfect in this work. This might stand true in the case of Al-Arafah Islami BankLtd also. So far as my own observations are concerned. I have concluded a major drawback in the inner current banking system. In addition to the I have also learnt some disciplinary wrong practices on the part of staff of the bank branches. NO QUALITY IN ATTITUDE. The attitude of the bankers with all of their customers is not the same, they pay more attention and good service to some of the customers and neglect a major portion of them. Some of the customers approach to the bank officials and get their work done before others; it is not a good practice. NO PROPER GUIDANCE There are so many customers who don’t know how to fill cheques, pay-in-slip, application form, etc. They waste a lot of time of the bank stall. 20

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited Recommendations After doing internship of two months in Al-Arafah Islami BankLimited, I have analyzed some problem in the Bank. Following are my recommendations: Web Site: Al-Arafah Islami Banklimited has the web site, which has not been updated. The web site is very less informative and it won’t leave a good impression on the visitor. So I suggest that it should be updated to meet the requirements of the visitors. ATM Cards: At the moment the bank has not introduced its ATM cards for all the customers. The bank should start its credit card and ATM facility in order to highlight the value added features offered along with the basic product. As the bank has the good image, they can use that image as a benefit in this regard. To stay in the competition the bank should introduce its credit and ATM cards soon. Marketing: Al-Arafah Islami Bankis not very prompt in its marketing like its competitors. Most of the people in Pakistan know nothing about the bank or its products so the bank should spend and concentrate more on its marketing through various communication channels. Misdistribution of work: In Al-Arafah Islami Bank, there is misdistribution of work; some people are over burdened with the work. So I suggest that there should be fair distribution of work in all the departments. Participative management: Participative management concept should be adopted, where ideas from the employees should also be taken, not only for developing products but also on service, efficiency, employee morale etc. in order to improve them. 21

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited Fax Machines and Photocopying Machine: The number of Fax machines and photocopying machine in the bank are also less than they are needed. For photocopying one has to go downstairs. So there should be more machines and also their placement should be at the right place. Training programs AL-ARAFAH ISLAMI BANKshould introduce more training programs for their employees. It will help less educated and less experienced staff to grow and be a valuable part of the bank. PROPER PLANNING Bank should make a plan to gear up its recovery efforts on war footing and reorganize the recovery function of Al-Arafah Islami Bankbases. In addition, bank should tighten up control on expenditure. PROPER GUIDANCE. Bank should adopt such an induction plan that when a customer opens his account with the bank he should be supplied with a booklet which enables him to know the procedure of filing the cheques, pay-in-slip etc. It will save a lot of time of the bank staff afterward during the conduct of the account of that customer. DIVISION OF WORK. The billing system of MCB must be improved to facilitate the customers and workers. The work should be divided among the staff e.g. collection of bills. Countering of cash and then entry of these. CHECK OF EXPENDITURES. Expenditure must be controlled. Which are very high and unnecessary? BORROWING AT LOW COST. Deposits must be taken at a lower cost and given at higher interest rates. 22

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited Some necessary recommendations for HR Dept. of Al-Arafah Islami BankBangladesh Ltd are given bellow: The Bank should always concern about the world’s latest human resource management Practices. HR officers should be sent to abroad for participating in training courses, seminars and work shops. To retain and attract quality employees the bank should always try to follow competitive strategy in case of employee benefits, working conditions, and other motivational approaches. The higher authority of the bank should always try to make a fair evaluation of employees’ performance. They should develop the procedures of evaluation each and every year in accordance with the demand. The bank can also start campus recruiting that could bring a yield of highly educated graduates for the entry-level the organization could arrange seminars in the top business schools across our country. Also the company should facilitate online Curriculum Vitae-posting system that is very much effective practice used by the top business organizations over the world. The higher authority of the bank should always concern about the fairness of recruitment and selection. Without having efficient, energetic, enthusiastic people an organization can’t achieve its ultimate goal. A good placement can’t be without having good employee. The human resource department should place the right people in the right position. For this reason they first attempt to find out the human need of the bank in various department, different branches and different positions. The HR division should always careful in constructing different work group. The human resource professionals should always consider the cost benefit of each and every step. We conclude that Al-Arafah Islami BankBangladesh Ltd follows the Modern Human Resource Management practices. They always work for the welfare of its employees. Lower rate of employee turnover make it evident that Employees are very much satisfied with their current positions. Employees in the Bank are recognized as a great asset. In this way, the Bank is socially responsible. Hence, its strong manpower intelligence has made it one of the most rising Islami Bank in this region. Conclusion At present there is no such organization in the world that is free from problem and challenges. Every concern has to strive and struggle a lot to be more profitable and to get more competitive edge.The management of Al-Arafah Islami Bank is taking strategic steps to enable the bank to emerge as a strong and progressive institution. It is continuing to make efforts to refine its 23

A Working Report of General Banking Practices of Al‐Arafah Islami Bank Limited products and operations to make them more compatible. New deposit schemes have been introduced and an action plan to maintain revenue growth in future. As the business and economic conditions remain uncertain, Al_Arafah Islami Bank continues to develop the new products like it has been doing in past. References: 1. 2. Ahmed, Ausaf. (1995). The Evolution of Islamic Banking. In Encylopedia of Islamic Banking and Insurance,Institute of Insurance . Institute of Islamic Banking and Insurance, London. 3.Al-Arafah Islami Bank Limited: Central Accounts Department 4. Al-Arafah Islami Bank Limited (1995): Memorandum and Articles of Association of al-Arafah Islamic BankLimited. 24