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3.5.

Product and services of SJIBL

A) Deposit Products:
Cheque-based Account

Al-Wadiah Current Deposit Accounts

Mudaraba Savings Deposit Accounts (Msd)

Mudaraba Short Notice Deposit Accounts(Msnd)

Mudaraba Term Deposit Accounts (Mtd)

Non-cheque-based Account

Mudaraba Term Deposits

Mudaraba Double/Triple Benefit Scheme

Mudaraba Monthly Deposit Scheme (5, 8, 10 years)

Mudaraba Millionaire Scheme (12, 15, 25, years terms)

Mudaraba Hajj Scheme (1 to 25 years terms)

Mudaraba Housing Deposit Scheme

Mudaraba Cash Waqf Deposit Scheme

Monthly Income

Mudaraba Bibaho Deposit Scheme

New product from 2009


Mudaraba Marriage Scheme
Mudaraba Education Scheme
Mudaraba Mohor Scheme
Mudaraba Special Term Deposits Scheme

B) Investment products
Different Investment Scheme of SJIBL:
Household Durables Investment Scheme
Car Purchase Investment Scheme
CNG Conversion Investment

Overseas Employment Investment Scheme


Investment Scheme for Doctors
Investment Scheme for Education
Investment Scheme for Marriage
Investment Scheme for Executives

C) Foreign exchange product:

3.6.

Import

Export

Remittance

Progress of SJIBL

Equity of the Bank


The Authorized Capital of the Bank is TK. 600.00 core. The Bank has raised its paid-up capital
of TK. 68.5 core (25%g) through Initial Public Offering (IPO) in the month January-February
2010. Comparative position of Equity for the year 2010& 2009 is given below:Sl. No
a)
b)
c)
d)

Particulars
Paid-up capital
Statutory Reserve
Retained Earnings
Asset Revaluation

2010(core)
3,425,119,500
1,649,576,011
1,248,067,711
250,624,301

2009(core)
2,740,095,600
1182585039
753328,328
250,624,301

Reserve
Total:

6,573,387,52

4,926,633,268

3
Source: Balance Sheet of SJIBL, 30.09.2010

Deposit of the Bank:


Total deposit of Shahjalal Islami Bank stood at TK. 5444.70 core as on 30.09.2010 as against
TK.4228.61 core of 31.12.2009 registering an increase of TK 1216.09, i.e. 28.76% growth.
Deposit is the life-blood of a 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 investments.
Deposit mix of 2010 is as follows. This data are collected from the highlights of performance.

7% 9%

Deposit Mix of 2010


23%

59%

1%

Al Wadiah Current & other


Deposit Account

Other Mudaraba Deposit

Bills Payable

Mudaraba Term Deposit

Mudaraba Savings
Deposit

Source: Highlights of Performance of SJIBL, 2010.

Investment:
Total investment of the Bank stood at TK.5239.13 core as on 30.09.2010 as
against TK.3761.33 core of 31.12.2009 registering an increase of TK.1477.8 core, i.e. 39.29%
growth. The Bank is careful in development of the fund. Mode wise investments portfolio as on
30.09.2010 is given below:
Sl. No.

Mode of Investments

1
Investment
2
Classified investment
3
Government shares
4
Others shares investment
5
General investment
6
Bills purchased & discounted
7
Required provision for investment
8
Provision maintained against investment
Source: Financial statement of SJIBL, 30.09.2011

Taka (in Core)


5239.13
65.80
110
70.43
4941.61
559.66
62.56
67.85

Total Bank entertains good investment-clients having credit-worthiness and good track record.
The Bank has got a few investment Schemes to provide financial assistance to comparatively less
advantaged group of people. Day by day bank has increased their investment opportunity for
more earnings & schemes for the general people.

Foreign Exchange Business:


Total Foreign Exchange Business handled during the year 2010 was TK. 4734.25 core, i.e.
39.44% growth compare to 2009. The particulars of Foreign Exchange Business are given
below:-

Particulars
2010 (tk. in core)
Import
2526.26
Export
1914.43
Foreign Remittance
293.56
Total:
4734.25
Source: Highlights of performance of SJIBL, 30.09.2010

2009(tk. in core)
1695.99
1339.51
359.66
3395.16

Above data are shown in PIE in below for easy understanding: Here we consider 2010 for
showing composition of foreign exchange business.

3.15. PROFIT AND OPETATING RESULT


Every year Shahjalal Islami banks profit is increasing but its expenses are decreasing day by day
comparatively. In the next page, graphically its total operating income & total operating expenses
and its net profit s is stated.
600

164.47

500

107.06

400
300
200
100

46.32
84.51

64.7
31.38

107.23

162.88

2006

2007

87.56

81.77
51.32
232.3

86.01

Column1
Operating Expense(tk. In
Core)

291.68

341.45

2009

2010

Operating Income(tk. In
core)

0
2008

Source: Profit & Loss Statement of Shahjalal Islami Bank Ltd.

Investment Income:
Total Investment Income of the Bank as at 30 st September 2010 was TK.
143.32 core, but its preceding year investment income was 133.06 core in tk.
Actually it is growing. Its growth is 7.16%.

Non-Investment Income:
Total Non-Investment Income of the Bank as at 30 st September 2010 was TK.
138.45 core on as against TK. 80.57 core of the preceding year registering
41.81% growth over last year.

EPS: EPS of the bank as at 30st September 2010 was tk. 48.08. But its preceding year EPS
was 39.07 tk. So it is growing. From its profit and loss statement we can get below EPS:

SL

Year

Earnings Per Share (tk.)

no.
1.
2.
3.
4.

2006
2007
2008
2009

49.50
34.57
36.41
39.07

Source: profit & loss statement of SJIBL

3.16. Contribution to National Exchequer


The Bank has made provision of TK. 72.46 core for corporate tax in 2009 against TK74.80in
core of 2008. The bank has also contributed to the economy by generation employment of 1601
full time officials. In the year 2010(Jan 01 to sept30), Bank has paid TK.68.82 million to
Government exchequer as source tax, salary tax, VAT and other tax realized against various
services.

Comparative Contribution to National Exchequer : Here I consider some prominent


Islamic bank in Bangladesh. In below comparative contributions are presented in table:
Name of the Bank
Shahjalal Islami Bank Ltd. (SJIBL)
EXIM Bank ltd.
First Security Islami Bank ltd. (FSIBL)

Taxes (taka in core)


68.82
105.27
28.50

3.17. Foreign Correspondent


Shahjalal Islami Bank Limited has established correspondent relationship with 24 Banks in 550
locations to facilitate business with foreign countries. This correspondent relationship has
immensely increased Banks foreign trade and foreign business and simultaneously, the clients of
Shahjalal Islami Bank have been receiving satisfactory service from all over the world.

3.18. Branch Network


The Bank has been operating with a network of 63 (sixty three) branches all over the country. In
the year 2010 the Bank has opened 5 (five) new branches in important business location of the
country will be opened soon subject to obtaining license from Bangladesh Bank.

3.19. Relationship with other bodies

In the meantime Shajalal Islami Bank Ltd has established relationship with the following
National Bodies:

Bangladesh Institute of Bank Management (BIBM);

The Bangladesh Foreign Exchange Dealers Association (BAFEDA);

Bangladesh Association of Banks (BAB);

Central Shariah Board for Islamic Banks in Bangladesh etc.

3.20. Internal Control and Monitoring


The Bank gives utmost importance to supervision and monitoring of banking activities. The
Bank Branches are subject to the following Audit and inspections every year:Bangladesh Bank Inspection;
Internal Audit & Inspection;
External Audit; and
Audit Committees Audit & Inspection.

3.21. Dividend
The Board of Directors of the Bank has recommended stock dividend @ 25% i.e. to its
shareholders for the year 2009.

3.22. Automaton in Banking Operation


Shahjalal Islami Bank Limited is an Industry Standard, Islamic Shariah & latest technology
based Modern Bank. The Bank is equipped with start-of-the-art technology and committed to
provide technology based modern Banking solutions to its valued customers.

3.23. Online Banking


To provide better services to the valued customers using the latest technology and electronic
media competing with other private banks to set and establish full automated, on-line, centralized
banking systems interfacing (connecting software) with all delivery channels like: ATMs
(Automated Teller Machine), POS (point of sale- fund transfer machine for purchasing at branch
banking, Home Banking, Tele banking, Internet banking etc.

3.24. Personnel Management Information Systems (PMIS)

In Head Office PMIS system is going to be implemented in full phase with following features:
Employees recruitment, posting, personal, leave, increment, promotion, training, retirement,
attendance, payroll, PF, Tax etc should be controlled by PMIS.

3.25. SWIFT
The Bank has already become a member of Society for Worldwide Inter Bank Financial TeleCommunication (SWIFT) to provide Secured and accurate communication network for financial
transactions, i.e. L/C, Remittance, etc.

3.26. REUTERS
The Bank has also established liaison with the facility of REUTERS, through which the bank
received regular, latest information about the exchange rate, etc and other price sensitive
information to take prompt and correct decision.

3.27. Capital Market Services Division (CMSD)


Bangladesh economy has been facing great challenges in promoting industrial development and
in order to meet these challenges, capital market has a vital role to play. In an effort to promote
industrialization and economic development of Bangladesh, Shahjalal Islami Bank commenced
its Broker House operation on during 2008 through a separate division named Capital Market
Services division, Dhaka-1000 after getting permission from Securities & Exchange Ltd &
Chittagong stock Exchange Ltd.
Mention ably, the stock market contribution has increased day by day by the five branches of
SJIBL at different locations. Divisional contributions were 2.21% percent to total operating profit
before provision and taxes of the bank.

4.1.7. Types of Deposit & their Corresponding Provisional Profit:


1. Mudaraba Hajj Savings:
Minimum 1 to maximum 25 years time periods of those accounts. Installment basis pay
is doing by the account holders. Then when maturity period is expired then it can be withdrawn
by the holders with profit. Suppose if any pay 1925 for five years then its maturity value will
be 154475 tk.

2. Mudaraba Waqf Cash Deposit:


For this deposit money is collected through pay in sleep. Initially this deposit account is
created by at least taka 1000. Then you can deposit your money in every month in any multiple
amounts. Individual are opening this deposit account for getting afterlife welfare. Your paid taka
bank will receive as holly endowment based on Islamic shariah.

2. Mudaraba Special Term Deposit (MTD):


At least 1, 00,000 taka is needed for opening this account. If you want you get maximum 80%
loan facilities on deposit. Today it has 3 months, 6 months & 12 months maturity. Profit on
Mudaraba special term deposit account shall be at rates fixed by Head office from time to time
depending on their period of maturity. Deposit of Longer duration naturally earns higher return at
higher weight age
3. Double Money Scheme:
At least 10,000 taka is required to open and to continue this account. Following deposits
amounts as well as benefit are given by the bank after maturity:

Initial deposit(Taka)

Double Money

Triple Money

Scheme(taka)

Scheme(Taka)

10,000
50,000

20,000
1,00,000

30,000
1,50,000

100,000

2,00,000

3,00,000

10,00,000

20,00,000

30,00,000

50,00,000

10,000,000

15,000,000

5. Mudaraba Mohor Savings A/c:


It has for three, five and Eight Years maturity. Here, the installment rate will be taka 500,
taka 1000, taka 2000, taka 3000, taka 4000, taka 5000, taka 10,000. Account holder will choose
their installment according to their financial ability. The special condition of this account is that
holders must have to married before opening this account.

6. Mudaraba Monthly Profit Deposit Scheme:


At present, you get 500 taka profit as a depositors every month if you deposit taka 50,000
under this scheme. Again you will get 1000 taka profit for taka 100,000 deposit. You will get its
benefit after every month. You need not to wait for more than one month for getting this benefit.

7. Monthly Deposit Scheme:


In case of monthly deposit scheme, principal amount will be back with profits after
schemes maturity. Before maturity you will not get full benefit. This accounts installment,
maturity & periodic benefit is shown in below in table.

8. Mudaraba Savings Account: Annually two times profit will be provided by bank. Rate of
will not be fixed. Profit can be changed based on earnings. Profit rate will determined by head
office of SJIBL. Mudaraba Savings Deposit Account shall be opened with a minimum of Tk.2,
000/ which is also the minimum balance required to be maintained by the Account holder for
sharing profit on his deposit.

9. Mudaraba Millionaire Scheme (MMS): In below, present offers are mentioned in a


table. Under this scheme, whole amount will be paid at maturity with profit. You can withdraw
one million taka easily after its maturity by depositing fixed installment at every month.
Period
12 Years
15 Years
20 Years
25 Years

Installment Per Month


TK.3,280.00
TK.2,120.00
TK.1,080.00
TK. 575.00

Amount Payable At Maturity


TK. 10,00,000.00

10. Mudaraba Shikkha (education) Scheme: It has for 10, 15 and 25 years periods. Its
installment can be tk. 100,250, 500, 1000, 3000, and 5000. This project launched for students
welfare especially for poor. Generally parents of are open this account for their children
education cost bearing.

11. Mudaraba Lakhopoti Deposit Scheme: This scheme is for 3, 5, 8, 10 years. Here,
depositor must need to deposits as an installment by taka 2350, 1250, 650, 450 for a certain time
period
Other than above deposit there has another two deposits for welfare of account holder. That is
Mudarba bibaho deposit and mudaraba housing deposit.

4.1.8. Comparative Deposits Analysis:


Here I consider four organizations. Those are Shahjalal Islami Bank Limited (SJIBL),
EXIM Bank Ltd, Social Islami Bank Ltd (SIBL), and First Security Islami Bank Ltd (FSIBL). In
below the comparative analysis are presented in graph.
Everybody will be able to realize about SJIBLs higher deposit position. According to September
30, 2010, un- audited Balance sheet we can see the following total deposit amount for each of the
organization.

Source: Performance analysis of SJIBL, 30.09.2010

6000
5000

5444.7
4143.37

4000
3000
2000

SIBL
2088.92

1000
0
SJIBL

EXIM

SIBL

4.1.9.Trends
of Deposit of Shahjalal Islami Bank : In the nest page trends of total deposit are mentioned
in a line. Here I consider 2006 to 2010 deposit amount from the highlights of performance. I
think everybody will be able to realize the growth of Shahjalal Islmai Banks deposits trends.

Tend of Deposit from 2006 to 2010


5,444.70
4,745.92
3,648.42
2,261.82
In million Taka Total Deposit(In
1,809.07
Tk)
20062007
Year200820092010
Source:: highlights of performance, 30.09.2010

4. 1.10: Cash Section


C
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A
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S
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H
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n
g

i
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C
a
s
h

A bankers transactions are mainly of three types. They include:

Cash
Transfer &
Clearing
All cash receipts and payments are made through this department. The SJIBL (Motijheel
Branch) is equipped with electronic machinery with fully computerized system which delivers
quick service to its valued customers.

The cash section deals with all type of negotiable instruments. It also includes the Vault. The
vault is insured up to a certain amount, which is called the vault limit; the excess cash is then

transferred to Bangladesh Bank. When the excess cash is transferred, the cash officer issues
IBDA.

4. 1.11 Bills & Clearing Section

A cheque is a bill of exchange drawn on a specified banker and not expressed to be


payable otherwise than on demand. [Section-6, Negotiable Instrument Act, 1881]
The picture below (Fig.1) shows a typical cheque issued by banks.

Figure: Sample of a cheque, Source internet

Cheques of its customers are received for collection from other banks. In case of receiving
cheques, some necessary points should be checked very carefully:
The clearing house of the SJIBL is the Main Branch, and head office which is located at SE (A)
2/B. Gulshan South Avenue. Gulshan - 1.