INTERNSHIP REPORT ON

BANKISLAMI PAKISTAN LIMITED,

BATTAGRAM BRANCH (3040)

SAJID ULLAH

Roll No: 26931

BBA (Hons) Marketing

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY MANSEHRA

SESSION: 2012-2016
 INTERNSHIP REPORT ON
BANKISLAMI PAKISTAN LIMITED,
BATTAGRAM BRANCH (3040)

This internship report is submitted in partial fulfillment of the requirements for

the degree of bachelor of business administration awarded by Hazara
University Mansehra.

DEPARTMENT OF MANAGEMENT SCIENCES,

Hazara UNIVERSITY, MANSEHRA
Session: 2011-2015
INTERNSHIP REPORT ON
 BANKISLAMI PAKISTAN LIMITED,
BATTAGRAM BRANCH (3040)

APPROVAL SHEET

Supervised by :

Signature: ___________________________________

Name: ___________________________________

Designation: ___________________________________

Organization: ___________________________________

External examiner: ___________________________________

Name: ___________________________________

Signature: ___________________________________

Chairman: ___________________________________

Name: ___________________________________

Signature: ___________________________________

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY MANSEHRA

SESSION: 2012-2016
 DEDICATION

I would like to dedicate this report to my honorable, and caring parents, who
motivated, and encouraged me throughout my educational life. Without their
appreciation, I was unable to complete this report.

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 PREFACE

It has very important for the students of business administration to

obtain the basic knowledge, skills, and tactics to compete efficiently in today ’s
era. A student can learn these skills, while working with an organization.
Learning and experience plays a very vital role in life because it is the first
step upstairs to the professional life. He can implement all these skills and
experience in practical life. So, it cannot be underestimated.

For me, it was a great opportunity that being a student of finance, I did
my internship experience in Bankislami limited. As today we can judge a
country by its economy, banking sector has gain an attention being a vital part
of the economy. In Pakistan, we have a well-established banking system. My
experience with bank was rewarding and exciting. It helped me out to know a
lot about the banking operations and much more.

My stay at bank was so productive and beneficial. The staff of bank

was so cooperative and whenever I required help and information, they
provided me. For this I am highly indebted to all of them. My special gratitude
to branch manager Mr. Mushtaq Ahmed and operations manager Mr Ali Asar
khan, for their help and guidance.

I am thankful to my great teacher Mr. Shairyar Khan whose

supervision made, me able to write the report easily and efficiently.

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 ACKNOWLEDGEMENT
First of all I am thankful to ALLAH (Subanaho Watala), who is the creator of
the whole universe for giving me the ability and knowledge to excel in my
education. After that, I am highly indebted to many people for their sincere
cooperation and support. First and foremost I am extremely thankful to my
supervision Mr. Shairyar for his unwavering support, encouragement and
mentorship. During the execution of my report, I had a real chance to learn
from his vast experience and immense knowledge.

I am very thankful to the staff of bank for their guidance and for
providing the valuable information about bank, which is proved beneficial for
me.

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 TABLE OF CONTENTS

APPROVAL SHEET
DEDICATION I
ACKNOWLEDGEMENT III
CHAPTER 1 INTRODUCTION 1
1.1 INTODUCTION TO THE REPOT.............................................................................1
1.2 BACKGROUND OF TH STUDY:.............................................................................1
1.3 PURPOSE OF INTERNSHIP:....................................................................................2
1.4 SCOPE OF THE STUDY:...........................................................................................2
1.5 DATA COLLECTION PROCESS:.............................................................................2
1.6 OBJECTIVE OF THE STUDY:..................................................................................3
CHAPTER 2 OVERVIEW OF THE ORGANIZATION 4
2.1. OVERVIEW OF THE ORGANIZATION:..................................................................4
2.2. INNAURATION AND NETWORK EXPANSION:...................................................5
2.3 NATURE OF THE ORGANIZATION:.........................................................................5
2.4 BUSINESS VOLUME OF BANKISLAMI:..............................................................5
2.5 ANALYSIS OF BUSINESS VOLUME OF THE BANKISLAMI PAKISTAN
LIMITED:............................................................................................................................6
CHAPTER 3 PRODUCTS AND SERVICES OF BANKISLAMI PAKISTAN
LIMITED 7
3.1 PRODUCTS AND SERVICES OF BANKISLAMI PAKISTAN LIMITED:............7
3.1.1 CONSUMER BANKING:.......................................................................................7
3.1.2 MUSKAN HOME FINANCING:...........................................................................7
3.1.2.1 EMPLOYEMENT MOOD:...................................................................................8
3.1.2.2 SALARIED:..........................................................................................................8
3.1.2.3 BUSINESSMAN:..................................................................................................8
3.1.2.4 DOCUMENTS REQUIRED FOR THE MUSKAN HOME FINANCING:......8
3.1.2.5 PROPERTY DOCUMENTS REQUIRED:........................................................9
3.1.2.6 DOCUMENTS REQUIRED FOR SALARIED PERSON:.................................9
3.1.2.7 DOCUMENTS REQUIRED FOR BUSINESSMAN:.........................................9
3.1.2.8 DOCUMENTS RQUIRED FOR THE NRP’S:....................................................9
3.1.3 ISLAMI AUTO IJARA:......................................................................................10
3.1.3.1 IJARAH FCILITY FOR NEW BRANDED VEHICLES:................................10

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3.1.3.2 IJARAH FACILITY FOR THE IMPROTED VEHICLES:.............................10
3.1 RETAIL BANKING:.................................................................................................11
3.2.1 ACCOUNT OPENING DEPARTEMENT:..............................................................11
3.2.1.1 ISLAMI CURRENT ACCOUNT:.........................................................................11
3.2.1.2. ISLAMI BACHAT ACCOUNT:....................................................................................12
3.2.1.3. ISLAMI DOLLAR BACHAT ACCOUNT:.........................................................13
3.2.1.4. ISLAMI MAHANA MUNAFA ACCOUNT:......................................................13
3.3 CORPORATE BANKING:.......................................................................................14
3.3.1 ACCOUNT SERCICE:..........................................................................................14
3.3.2 TRADE SERVICES:..............................................................................................14
3.3.3 WORKING CAPITAL FINANCE:........................................................................15
3.3.3.1 MURABAHAH FINANCING:.............................................................................15
3.3.3.2 ISTISNA FINANCING:........................................................................................15
3.3.3.3 SALAM FINANCING:.........................................................................................15
3.3.4 PROJECT FINANCING:........................................................................................15
3.3.5 IJARAH:..................................................................................................................15
3.3.6 MUSHARAKAH FINANCE:.................................................................................16
3.3.7 MUDARABAH FINANCE:....................................................................................16
3.4 INVESTEMENT BANKING:...................................................................................16
3.4.1 ADVISORY:..............................................................................................................16
3.4.1.1 FUND RAISING:.................................................................................................16
3.4.1.2 CORPORATE RESTRUCTURING:.....................................................................16
3.4.2 STRUCTURING:..................................................................................................16
3.4.2.1 SECURITIZATIONS:............................................................................................16
3.4.2.2DISTRESSED ASSET SALE:........................................................................................16
3.4.3 UNDERWRITTING:.............................................................................................17
3.4.3.1 SUKUKS:...............................................................................................................17
3.4.3.2 EQUITY:................................................................................................................17
3.4.4 TRUSTEESHIP:....................................................................................................17
3.4.5 SPECIALIZED ROLE:..........................................................................................17
3.4 VALUE ADDED SERVICE:.....................................................................................17
3.5.1 ONLINE BANKING:...............................................................................................17
3.5.2 INTER BANK FUND TRANSFER:.....................................................................17
3.5.3 ATM / DEBIT CARD:...........................................................................................18
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3.5.3.1 ATM CARD:.......................................................................................................18
3.5.3.2DEBIT CARD:.......................................................................................................18
3.5.3.3 BIOMETRIC ATM:............................................................................................18
3.5 LOCKERS:................................................................................................................18
CHAPTER 4 SWOT ANALYSIS OF BANKISLAMI PAKISTAN LIMITED 20
4.1 STRENGHTS:...........................................................................................................20
4.2 WEAKNESSES:.......................................................................................................22
4.3 OPPORTUNITIES:...................................................................................................23
4.4 THREATS:................................................................................................................23
4.5 PEST ANALYSIS:......................................................................................................24
4.5.1 POLITICAL:..........................................................................................................25
4.5.2 ECONOMIC:............................................................................................................25
4.5.3 SOCIAL:...................................................................................................................25
4.5.4 TECHNOLOGY:......................................................................................................25
CHAPTER 5 RECOMMENDATION ANDCONCLUSION 26
5.1 RECOMMENDATIONS:............................................................................................26
5.2 CONCLUSION:........................................................................................................27

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 CHAPTER 1

INTRODUCTION

1.1 INTODUCTION TO THE REPOT

This is the result of the six week as internee in the Bankislami Pakistan limited.
Bankislami Pakistan limitted in my carrier this report is must for the student of
BBA that after the completion of course work in the university. So the student will
bound that to do a six week internship in the particular Department in banks or in
other commercial industry.

And for this reason I came to Bankislami Pakistan limited for internship in Battagram
branch. I work mostly in the department of the marketing because my
specialization is in the marketing. I examine and also practice the planning,
procedures, marketing policies and also the marketing tactics as well as the
marketing strategies of the bank. Here is also some tactics is used in addition with
the tactics and strategies of the Bank. i also examine the procedure of the bank
and also examine the marketing strategies of the Bankislami Pakistan limited
Battagram branch.

1.2 BACKGROUND OF TH STUDY:

The background of the report is that this report will help me throughout life. Because
in university we just follow books and theories. Here in the Bank we experience
these books and theories. It give me a lot of experience which also help me in my
future. I select the Bankislami is for many reasons. Because I we are grown in
religious society. So our society is not bearing any type of interest organization.
And the Bankislami is labeled the ISLAM. And there is also a fatwa of the
MUFTI TAQI USMANI.

Bankislami is mainly focus on the retail and commercial business. Because a nation is
grows when their economy is mature. Our most of the population is related with
agriculture and the Bankislami are trying to empower the people and secure their
investment. With the help of that they will grows and start the value added
technique.
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In my internship time I examine all these procedures that how they experienced it.
Especially they voice of the islam. And I m satisfy from them that their
experience is just right to their slogans.

1.3 PURPOSE OF INTERNSHIP:

The major purpose of my internship is to find out the gap between the university
learning and the practical implementation. In Bankislami Pakistan limited
Battagram branch I did not feel that I m out of the university. Because the staff of
the bank I well educated and especially the CUSTOMER SERVICE MANAGER
(CSM) was well mannered and well educated. This will me through out my
internship and behaves me like a student. The other purpose of doing internship is
that the internship is necessary for the student after the completion of the course
work. Without that university does not awarded him with degree.

1.4 SCOPE OF THE STUDY:

a. The scope of my internship in the Bankislami Pakistan limited is to gain

knowledge and also get experience.
b. I also want to examine the tactics and policies of the bank which they practiced in
daily life.
c. This will help me in future in job of any other bank in Pakistan as well as abroad.
d. Bankislami Pakistan limited is also label the ISALM, so I also want to close
analyzing of the Islamic banking. Because most of the people are saying that
without interest a bank cannot be run

1.5 DATA COLLECTION PROCESS:

This report I wrote during my internship time in bank. I used both primary and
secondary source for the collection of data. The primary data collect from the
Branch manager, customer service executive and customer service manager and
also from my senior’s staff with in the bank.

1.1.1. PRIMARY DATA:

 Primary data also get from personal observation.
 From interviews of different staff.
 And practical work is also became a great source of data collection for me.

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1.5.2 SECONDARY DATA:
a. Secondary data I get from,
b. Annual reports of the bank
c. Different manuals of the banks
d. Through internet
e. Through different magazines of the Bank
f. Through various internship reports of the Bank
g. Through business newspapers.

1.6 OBJECTIVE OF THE STUDY:

There are various objectives of my internship. The primary objective of my report is

to adjust in the field of the bank.

a. To develop the skill of dealing.

b. To communicate with customer and convenes others.
c. Examine of the different aspect of the Bank. Like how they practically implement
their marketing plans and tactics.
d. To develop the skill of management. Like how the Branch manager and other
utilize their skill and take work from their sub ordinates.
e. To gain some practical experience which help me in practical life.
f. To overcome the problem which occur in daily life.
g. To manage the time and divide the time in manner.

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 CHAPTER 2

OVERVIEW OF THE ORGANIZATION

2.1. OVERVIEW OF THE ORGANIZATION:

Islamic banking is the new ideological field of study in the modern global economy.
And it has a great potential of growing at a fast rate in the global market.
Bankislami is the 1st leading bank which receives the Islamic license under the
rule of the state bank of Pakistan Islamic banking policy. The concept of the
Islamic banking is presented to the stakeholders; JS group and DCD group on 24 th
march 2004. Bankisalmi submitted application for the license of the Islamic bank
to the state bank of Pakistan on May 26th 2004. In the reply state bank of Pakistan
recognized bankislami as a legal entity after SECP incorporation certificate in
OCT 2004.

On 18th of October Bankislami emerged as a second full fledge commercial bank in

Pakistan, and the state bank of Pakistan has also given no objection certificate
with in no time on 19th of august 2004. The main thing which Bankislami focused
is the wealth management as the core area of business and also in support with
shariah complaint retail banking products, propriety and other party products and
also financial planning services. Bankislami has the title of the more than 100
branches in less than 3 year of period in history of Pakistan and expand it to 102
online branches in 49 cities of Pakistan. By the year of 2009 Bankislami witness
the phenomenal maximization of the deposit by 32% and maximize customer base
by 39% over past period 0f time.

Bankislami Pakistan limited has also the titled of the offering of the Rs.400 million at
s part of the 6th to 8th march. This title is leading among all the 1st rank in primary
issued by any bank in the history of any Pakistani bank. Bankislami has received
more response than any other bank on behalf of the initial public offering (IPO).
This margin is 9 time more than any other bank by enticing about Rs. 3.5 Billions
against the demand of 400 million.

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 2.2. INNAURATION AND NETWORK EXPANSION:

On 17th March 2004 State bank of Pakistan officially announced Bankislami Pakistan
limited as a planned Bank. Bankislami Pakistan limited officially came in progress
in 7th April 2006. Bankislami first branch were established in Karachi. At the end
of 2006 Bankislami expand their one branch in Karachi to 8 more and also
established one branch in Quetta, total Bankislami developed 10 branches.
Bankislami didn’t stop their struggle and expand their range of business to 22
more cities and they established 1 more branches, and by total of 36 branches in
the whole country just by the end of the 2007. In 2008 Bankislami expand their
area of business to 26 more cities and established 66 more branches, by the total
102 branches in 49 cities.

2.3 NATURE OF THE ORGANIZATION:

Bankislami hold second position in the Pakistan in Islamic bank. Bankislami hold
most treasure and presents a lot f wholesale and retail banking products and
services from side to side its distribution network.

The anecdote of success behind the success of the Bankislami is the increase in the
deposits, which’s biggest source is retail segment. Bankislami is included in that
limited banks which have an authentic deposit franchise.

Bankislami become more successful when the exploitation of state of sharia basic
banking system. Bankislami Pakistan limited hold 11th position in the 1- LINK
members which is more improved from previous version. The top management of
the Bankislami Pakistan limited had a global bank work experience and also has a
good tracking record.

2.4 BUSINESS VOLUME OF BANKISLAMI:

2005 2006 2007 2008 2009

DEPOSITS 789,200 1,788,008 9,934,282 12,477,955 27,987,378

ADVANCES 425,417 959,133 3,962,867 6,527,531 13,282,152

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INVESTEMNTS 217,970 493,008 3,864,027 5,019,525 681,3191

TOTAL ASSETS 1,783,012 4,024,674 1,447,473 19,088,600 34,286,771

SHAREHOLDER 596,529 2,002,887 3,844,726 5,191,821 4,740,293

S

EQUITY

LOSS AFTER (4,259) (8,088) (37023) (52,930) (478,939)

TAX

Source: annual report 2013-14

2.5 ANALYSIS OF BUSINESS VOLUME OF THE BANKISLAMI

PAKISTAN LIMITED:

There is a big explosion in the 2008-9, Bankislami record a loss of 563M before of
the tax. Its all occur due to the instability in economic condition of the Pakistan
and this loss is almost more than the budget of the Bankislami Pakistan limited
and the loss is Rs.250M. At the same time our the BIPL private credit corporate
goes off and its take only for the reducing of the hunger of the credit. Meanwhile
the ADR of the BIPL is still reduces and its less than 50%, which is a good sign
for the improving of their volume. And in the last quarter the growth of the BIPL
is almost more than 30%.

BIPL focused costumer banking which is more safe and healthy instead of the others.
Bankislami Pakistan limited recorded a great growth in the term of the current and
saving accounts. While fixed Deposits are obviously propel by five and now ten
products which also shows the impressive growth in the market which termed as a
21% account.

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CHAPTER 3

PRODUCTS AND SERVICES OF BANKISLAMI

PAKISTAN LIMITED

3.1 PRODUCTS AND SERVICES OF BANKISLAMI PAKISTAN

LIMITED:

Bankislami Pakistan limited offered to the customer;

1. Consumer Banking
2. Retail Banking
3. Corporate Banking
4. Investment Banking
5. Value added services

3.1.1 CONSUMER BANKING:

Consumer banking of the Bankislami Pakistan limited includes Muskan home

financing and Islami auto Ijara.

3.1.2 MUSKAN HOME FINANCING:

Muskan home financing is the project of the of Bankislami Pakistan limited which
includes financing for the home. It is the simplest form and more convenient form
of shariah. In Muskan home financing Bankislami finance the other to build their
own home and or repairing of their home.

MUSKAN Home financing is occurring due to the Musharakah and Ijarah. In the
Musharakah transaction the customer did not hold the property as all, but the Bank
is also involve with them. Then the Bank released there share on lease to the
customer. The lease is then divided in to the units and then that units buy by the
consumer, which make it the sole ownership of the property. Before that the
consumer will pay rent for that to the bank and when the bank share decreases
then the hold of the consumer on the property will increases.

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PRIMARY DOCUMENTATION REQUIRED FOR THAT PROJECT;

Citizenship Pakistani

Cities Karachi, Lahore, Islamabad and Rawalpindi

Age limit salaried, businessman or selected professionals

Primary Applicant 25 to 65 years

Co-applicant 21 to 70 years

NRP’s Applicant 25 to 60 years

3.1.2.1 EMPLOYEMENT MOOD:

3.1.2.2 SALARIED:

Salaried required 6 months if the customer have currently employed and if they are
permanently employed then 2 year slip in the same field.

3.1.2.3 BUSINESSMAN:

Businessman requirements are three year experience in the business field. There
lowest income is about to 50,000/- and if they are working as a employee in that
then 35,000/-.

For non resident of Pakistan required minimum 100,000/- . NRP’s also required some
more criteria as wee,

1. An NRP’s must need to have any other person which’s nationality is Pakistani.
The NRP’s will take on behalf of that Pakistani Applicant.
2. Muskan home financing is only for the salaried NRP’s.

3.1.2.4 DOCUMENTS REQUIRED FOR THE MUSKAN HOME

FINANCING:

GENERAL DOCUMENTS REQUIRED:

 Copies of national identity card of both (Applicant and Co-Applicant).

 Two photographs of both (Applicant and Co-Applicant).
 The Application form will must be filled completely and also with the profile
report of the primary Applicant.
 And authentic photocopies of the utility bills as required.

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3.1.2.5 PROPERTY DOCUMENTS REQUIRED:

 Copy of chain of all documents title.

 Approved building plans
 Public notice.

3.1.2.6 DOCUMENTS REQUIRED FOR SALARIED PERSON:

 Employment certificate of the particular industry.

 Pay slips of last three months.
 Bank accounts statements of at least last three months.
 Detail of all of other financing and also detail of their recovery.

3.1.2.7 DOCUMENTS REQUIRED FOR BUSINESSMAN:

 Income tax statements and return of the last three years at least.
 Proprietorship letter or partnership agreement or memos or other articles as
according to their nature of the business.
 Statement of the company at least one year.
 Also detail of other financing which is done during business and also their
recovery.

3.1.2.8 DOCUMENTS RQUIRED FOR THE NRP’s:

NOTE: BANKISLAMI PAKISTAN OFFRERED HOME FINANCING LOAN TO

THE NRP’S WHICH IS SALARIED.

 Salary slip of last three months

 Photocopy of passport.
 Two attested photocopies of NICOP.
 VISA and residential status.
 Explanation of the tax deduction.
 Certificate of the employment in the particular industry and also a photo copy of
the contract.
 Statements of the Bank and the letter of the Bank of at least last one year.
 Two colored photograph of both (Applicant and Co-Applicant).
 The full documents which are required should be attested by Pakistani consulate.

3.1.3 ISLAMI AUTO IJARA:

Bankislami auto ijara means that the Bank give auto to the customer and they give
rent to the bank in return as per rule. When the time limit is expired then all in the
court of the customer where they give back the auto to the bank or sale it to the
other. In ijara the Bank become lesser and the customer became lessee. Islami auto
ijara of the Bankislami is fully based on the ijara system.

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3.1.3.1 IJARAH FCILITY FOR NEW BRANDED VEHICLES:

Term of ijarah.

Minimum 3 years and maximum 5 years.

Minimum cost of new vehicle is 250,000/-

Deposit of security is 30% at least and 50% maximum.

4,500 is the processing amount and 1,000 is pre processing amount.

All vehicles which’s price is more than 600,000 will required the installation of the
TRACKER.

TAKAFUL is important for every vehicles which is based on the TKAFUL Pakistan.

3.1.3.2 IJARAH FACILITY FOR THE IMPROTED VEHICLES:

Terms and condition for the imported vehicles;

Minimum three years and maximum five years.

Rs.250, 000 is the lowest cost.

Security is minimum 30% and maximum 50%.

4,500 is the processing fee and 1,000 is the pre processing fee.

All vehicles which’s price is more than 600,000 will required the installation of the
TRACKER.

TAKAFUL is important for every vehicles which is based on the TKAFUL Pakistan.

3.1 RETAIL BANKING:

3.2.1 ACCOUNT OPENING DEPARTEMENT:

Account opening department is the department which’s work is to open the new
accounts and closing of the accounts due to any reasons. When an individual want
to open their account in the Bankislami so 1 st they will go through the terms and
condition of the Bankislami which is written in the front page of the form.

Bankislami offered many accounts for the customers,

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 Islami Current Account
 Islami foreign Currency Account
 Islami Bachat Account
 Islami Dollar Bachat Account
 Islami Mahana Munafa Account
 Islami Amdani Certificate

3.2.1.1 ISLAMI CURRENT ACCOUNT:

Islami current account is the account which provides safety and personal satisfaction
that their amount in the Bank is safe and as well as used in Halal work. In this
type of account the customer have a frequent and convenient access to their
amount.

KEY SALIENT FEATURES OF ISLAMI CURRENT ACCOUNT:

 Rs. 1000/- will be minimum balance.

 There will be four account holders in a share.
 There will equally excess to the each network online branch.
 The online transaction will be free.
 Deposit lockers.
 The transfer between the banks is through ATM.

DOCUMENTS REQUIRED FOR ISLAMI CURRENT ACCOUNT:

1. FOR SALARIED PERSON:

 Account form must be filled.
 A copy of national identity card.
 Copy of passport (for NRI only)
 Authentic slip of salary, or letter.
2. REQUIREMENTS FOR SOLE PROPRIETORS:
 Account form must be filled.
 National identity card.
 NTN certificate.
 Copy of passport (for NRI only)

REQIREMNETS FOR NGO/PARTNERS/ASSOCIATION/TRUST:

 Authentic copy of the trust/NGO \needed

 Copies of national identity cards.
 Agreements between partners.

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3.2.1.2. islami bachat account:

Isalmi bachat account is the account which is provide a hope to the customer that
there money is safe and in a safe hand. On behalf of the customer money Bank is
doing business and pays them their benefit. It is also called a salary account, every
month the Bank give them a salary benefit. It’s totally is under of the shariah
court.

KEY SALIENT FEATURES OF ISLAMI BACHAT ACCOUNT:

 There will be a profit and win situation in a monthly and daily basis.
 The profit will be announced after the end of the every month.
 Minimum Rs.5000/- required for the opening of the account.
 There will be only four individuals for opening of joint account.
 Equal access to the each network of Bank is over all Pakistan.
 The internet banking is free.
 Deposit lockers.
 Account statement is free.

3.2.1.3. ISLAMI DOLLAR BACHAT ACCOUNT:

Islami dollar bachat account is very helpful for those customer which wants dealing in
the dollars. In islami dollar bachat account the customer save their money in the
Bank in the form dollar. And the Bank invests the money in different business
under the rule of the MUZARBA in a shariah complaint manner. There will be
profit and loss situation. This project is for both Pakistani and also for non
residential.

KEY SALIENT FEATURES OF ISLAMI DOLLAR BACHAT ACCOUNT:

 This is interest free

 Free online banking
 100/- US $ required for the opening of the account.
 Deposit lockers.
 No ZAKAT withdrawal
 No other taxes
 There will be only four individuals for opening of joint account.
 Equal access to the each network of Bank is over all Pakistan.
 The internet banking is free.
 Deposit lockers.
 Account statement is free.

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3.2.1.4. ISLAMI MAHANA MUNAFA ACCOUNT:

Islami munafa account is also helpful project for ht e customer. In mahana muafa
account, the Bank gives profit to the customer on monthly basis.

KEY SALIENT FEATURES OF ISLAMI MAHANA MUNAFA ACCOUNT:

 This is interest free

 Free online banking
 Deposit lockers.
 No ZAKAT withdrawal
 No other taxes
 There will be only four individuals for opening of joint account.
 Equal access to the each network of Bank is over all Pakistan.
 The internet banking is free.
 Deposit lockers.
 Account statement is free.
 Tenure time is 1,2,35 and10 years.

3.3 CORPORATE BANKING:

Corporate banking of Bankislami Pakistan limited help in the economy of the

Pakistan. It provides many facilities to the customer;

a. Account service
b. Trade services
c. Working capital finance
d. Project finance
e. Musharakah finance
f. Mudarabah finance
g. Ijarah

3.3.1 ACCOUNT SERCICE:

IN ACCOUNT SERVICE Bankislami give all basic needs which needed a customer.

Like;

 The current account maintenance fee is zero.

 Available option for the customer is PKR, JPY, EURO, USD, GBP.
 The transfer of fund is on lowest fee.
 Freely and easily access to the all branches in of the Bankislami Pakistan limited
within the Pakistan.

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3.3.2 TRADE SERVICES:

Trade services means in the Bankislami is that the Bankislami provide opportunity to
the customer that they start a new business. Like they are providing import and
export facility to the customer.

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3.3.3 WORKING CAPITAL FINANCE:

Working capital finance is the key and important project of the Bankislami Pakistan
limited. It provides finance to the people whose work is in progress or to those
businessmen which need capital for their in progress work. It is mostly short term
financing. To fulfill these gaps of the working in progress it include following
services;

3.3.3.1 MURABAHAH FINANCING:

In this type of financing the seller sale their products and off their sale, then they
distribute the profit. This is type in which the Bank purchase something for the
corporate customer and the sale it to them \. The corporate customer then sale it
and return the same amount to the Bank with specific profit.

3.3.3.2 ISTISNA FINANCING:

In this type of financing Bankislami provide finance to the manufacturer that they
manufacture something and then Bankislami buy from it and then provide it to
other customers.

3.3.3.3 SALAM FINANCING:

Salam financing is the financing in which the Bank provide loan to the supplier and
the supplier will supply him goods in future some fix date. Salam is better for the
agriculture purpose. When they ripe then the farmer give it to the Bank.

3.3.4 PROJECT FINANCING:

Project financing is for medium and long term financing. Salam financing is the
product of the Bankislami in which the Bankislami offered the loan for big
industries and project. It is mainly for long term.

3.3.5 IJARAH:

Ijarah is a process in which the Bankislami lease their assets to the client and the
client give them rent. After some specific time the assets will purchased by the
client from the Bank. And the ownership change from Bank to the client.

15
3.3.6 MUSHARAKAH FINANCE:

Musharakah finance is the finance in which the Bank and the individual mutually start
a business and then share their profit and loss mutually. Musharakah is fully based
on the shariah counsel. In this type the profit and loss both are involved.

3.3.7 MUDARABAH FINANCE:

It is a type of partnership in which one partner is investor and other is investee. The
person which is invest is “RABB-UL-MALL” and the other who is managed the
business is called “MUDARIB”. MUDARIB is investing the other money and
then the profit is shared with others with predetermined criteria of profit or at a
specific ratio. If there is a loss occurs then it will only bear Rabb-ul-mall and if the
loss is due to the innocence of the Mudrib then only it will be responsible.

3.4 INVESTEMENT BANKING:

Product and services of the investment banking of Bankislami Pakistan limited are as
follow:

3.4.1 Advisory:

3.4.1.1 FUND RAISING:

Fund raising is the process in which one firm solicits other limited type of partnership
for a private equity.

3.4.1.2 CORPORATE RESTRUCTURING:

Corporate restructuring is the process in which the organization restructure the old
products and sale it in to new handsome amount.

3.4.2 STRUCTURING:

3.4.2.1 SECURITIZATIONS:

It shared the risk and distributes it to others, and then issue a new pool securities
backed.

3.4.2.2Distressed asset sale:

Distressed asset sale is a process in which the owner sale their product in a cheap
price. It because of many factor like debts, bankruptcy.

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3.4.3 UNDERWRITTING:

3.4.3.1 SUKUKs:

It is a type of bond under the rule of the sharaiah court.

3.4.3.2 EQUITY:

Equity is the residual claim or interest of the most junior class of investor in assets.

3.4.4 TRUSTEESHIP:

Fiduciary role in mutual fund

Trusteeship for SUKUKs

3.4.5 SPECIALIZED ROLE:

Public equity
Particular projects
Ijarah and musharakah synchronization

3.4 VALUE ADDED SERVICE:

3.5.1 ONLINE BANKING:

There are 110 plus branches of Bankislami in the Pakistan in almost 55 cities and all
of them are providing online banking. Online banking means that all branches of
the Bankislami in the Pakistan is connected with each other and the customer
easily doing transaction from it in overall country. The customers of the
Bankislami Pakistan limited are getting benefits from the online Banking. Some of
the benefits are as followings;
 Easily and fast deposit of the cash
 Cash the cheque from any branch w in the Pakistan
 Immediate transfer of fund from one branch to another branch
 Checking of balance and balance statement from any branch of the Bankislami
with in the country

3.5.2 INTER BANK FUND TRANSFER:

Inter Bank fund process is that process in which the bank is transfer money from one
bank to another bank through ATM and through online. The transfer of money will
be free. But the other branch must be 1link member.
Interbank fund transfer (IBFT) has some salient feature and benefits which as follows;
 Convenience
 Comfortable for every one

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 Immediate transfer of fund
 Safe and sound
 24 hour facility
 It is totally online based.

3.5.3 ATM / DEBIT CARD:

ATM and debit card is act like money. With the help of these the customer has secured
their money and also not burden of money and also tension. It is helpful in
restaurant, grocery shop even in every place. If u have ATM card so you will
withdrawal the money round the clock and from any branch of the Bank anywhere

3.5.3.1 ATM CARD:

Bankislami issue two type of ATM cards one called Golden card. From which the
customer withdrawal 50,000/- in 24 hours and the other is simple card from which
the customer only withdrawal 25,000/- in 24 hours.

3.5.3.2DEBIT CARD:

The Bankislami Pakistan limited debit card is used for the shopping purpose. In the
market just swipe the card and it’s automatically deduct from your Bank account.
Its limit is 36,000. It is linked with Orix network in overall country.

3.5.3.3 BIOMETRIC ATM:

Bankislami Pakistan limited starts the practice of the biometric ATM card. In this type
of card only finger is used for the opening and the finger print is not copied.

3.5 LOCKERS:

The Bankislami Pakistan limited provides a safe for the overall customer and they call
them locker. In this the customer keeps their jewelries, money and other precious
things. In this is the customer things are safe and secured. They also provide
insurance for that. But this is not the insurance like other banks provides. But they
provide insurance by the rules of shariah court and they are strictly follows them.
They called it TAKKAFUL.
KEY SALIENT FEATURES OF THE LOCKER:
1. Provide privacy to the customer.
2. Protection from any type of the risk like weather condition, storage or
transport.
3. Safety from the unforeseen risks like fire aftershocks etc.

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4. Bankislami divide the lockers in to different types like small, medium and large.
5. The lockers is insured called TAKKAFUL, and the takkful is different for
different type of the lockers.
6. The takkaful is start from Rs25,000 and for large is Rs 100,000.

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CHAPTER 4

SWOT ANALYSIS OF BANKISLAMI PAKISTAN

LIMITED
(BIPL)

SWOT analysis is very major factor in every organization. Every organization doing
their SWOT analysis in every position. SWOT analysis stand for the strength
weaknesses opportunities and threats. The strength and weaknesses is the internal
factors and the opportunities and threats are the external. Internal are those factors
which directly affect the organization productivity. And that factors are the
organization himself reduce or decreases. In the other side the treats and opportunities
are the external factors. External factors are that which indirectly affect the
productivity of the organization. These are that which organization cannot increase or
decrease. Here we discuss one by one with details.

4.1 STRENGHTS:

1. Here I will the strength of the Bankislami Pakistan limited as

according to the particular branch where I did my internship.
2. As the Bankislami Pakistan Battagram branch is situated in the main Bazaar. And
the people of that area are very religious.
3. The slogan of the Islam is very helpful for the Bank. It strengthens the transaction
of the bank. And also help the customer to invest their HALAL money in to the
HALAL Bank.
4. The Bankislami Pakistan limited BATTAGRAM branch employee is very good
and also serious with his work. They took a competitive edge over other banks in
the that particular area through their behavior and manner.
5. The whole team of Bankislami Pakistan limited is high qualified and well trained.
They have a lot of experience and also the bank give them on job training.
6. The main plus point of the Bankislami Pakistan limited is that they satisfy their
customer well. When the customer is entering in to the Bank, the gatekeeper
opened the door, and there will someone to welcome the customer.
7. In Bankislami Pakistan limited there is one person is always ready in th Bank to
welcome everyone in the bank.

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8. The Bankislami Pakistan limited acquired 100% local staff, which strengthen their
involvement in the Bank. With the help of that most of people came here just
because of the staff.
9. Bankislami Pakistan limited also took advantage on other banks just because of
their new technology. Bankislami acquired new technology and start biometric
ATMs.
10. Most of the people of that district is illiterate, and they did not know how to use
ATM. But with the help off Biometric ATM they easily know that. And this is also
a plus point for the Bank.
11. The Branch manager of the Bankislami Pakistan limited also empowers the BDOs
that they choose how they work. But the necessary point is that they must achieve
their target.
12. Bankislami provide three chances to their BDOs, if they did not achieve their
target then they repel from their job.
13. Bankislami Pakistan limited is focus on the human resource. Like If there team is
good and well educated then they achieve their target.
14. Because of the employees are from diverse culture, there transaction and their way
of working is different. So they enjoy their company as well as they learned from
each other.
15. The customer service manager arte out there behavior and also performance.
Every day during on lunch they talk on the mistakes which the employee are
doing. And the manager will erase it.
16. The manager checked their performance on monthly basis and there is any
mistake or any other problem, they will try to erase it.
17. the Bankislami Pakistan limited provide a lot of facilities to their employees,
which become a big source of the advertise. They believe on that when the
employee is happy then they work well and vise versa.
18. In the case of load shedding the bank has two big generators and also has a
authentic UPS. The UPS is only for the computers of the overall Bank, and the
generators are for other activities.
19. Bankislami Pakistan limited also provide helpful information to their customer.
And the office and BDOs are giving enough time to the customer.
20. If there is any problem to the customer in filling of the form or online form, so the
BDOs or office boy is responsible for that to assist him

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 4.2 WEAKNESSES:

1. As the Bankislami has many strength which took the Bank into positive sense.
Here are also some factors which push back the Bank. These factors are called
weaknesses.
1. Here in BATTAGRAM the Bankislami has limited employees. And there is a lot
of burden on everyone. Sometime when the number of customer is increase then
they have no idea what to do.
2. Bankislami also cover a little space. They need a big hall fortheir bank purpose.
3. Here the bank acquire the building is good but they have not much space. The
way of entrance to the upper story is looking trouble because the stairs is not
good, and not well planned.
4. There is not much office assistant. Only one office assistant which only work in
the bank. And some time when they go out then there is no one remain behind
them.
5. One thing I notice in the Bank is everyone is busy in their work. Especially the
BDOs are just thinking every time to their task.
6. The Bank is not giving any focus to the lower scale people, because they did not
have much money and the responsible employee did not give any preference.
7. One other thing which I notice here is that the decision making is not good. Its
because the bank is new here so they did not really focusing on the decision
making. The employee is always waiting for the decision are from the top
manager.
8. Some time the lower manager is also responsible for the decision making. They
also need to take some decision, but to the inexperience they always failed.
9. The subordinate always looking to their top manger. And I feel that they did not
express their problem the manager or to the CSM easily.
10. For BDOs it’s not good. Because they are always in fear of the losing of job.
Their job is in secure.
11. In the Bank the complaint box in located but no one in the Bank is to help the
customer that how and when they use these cell.
12. The bank manager did not really focus on the advertisement. No one in the district
exactly knows about the Bankislami.

4.3 OPPORTUNITIES:

1. There are a lot of opportunities for Bankislami Pakistan limited, because they
already announce that they are practicing the Islamic rule.

22
2. With the addition of the retail banking the Bankislami Pakistan limited also
expand their area of business to the agriculture sector. Because more than 70% of
the population of the Pakistan is still related with the agriculture.
3. Bankislami Pakistan limited need to provide opportunities to the new comers, with
that they will identify some talented persons. This will help to achieve the goals of
the organization.
4. Bankislami Pakistan limited need to decentralized their authority up to some
extent. Like if they decentralize the decision making at the branch level, with the
help of that the bank will achieve their tasks.
5. Every branch of bank needed to their area of business and also some tactics which
is different from the other. But the important thing is that they achieve the target.
6. Most of the time the net or system of the other banks is down, so they need to
improve their network and internet for gaining of the attention of the customer.
7. The main opportunity for the bank is that they aware the customer about their
products and also suggest them that there is no sin in the investment in the
Bankislami. Because this is the Islamic bank.

4.4 THREATS:

1. The main and big threats for the bank are the current situation of the country.
Our economy is almost going to the site of shrinking.
1. Bankislami Pakistan limited has some micro and macro challenges. Because they
voicing that we are practicing Islamic rules, so many of other banks is also
voicing the same.
2. One of the big threats for the Bankislami is the changing in the taste and
behavior of the customer.
3. It is really a challenging task for the bank that they will change as according to
the taste and behavior of the bank.
4. A government policy is also a threat for the bank. Because when the policies of
the government are dynamic so it is tough for the bank or any other organization
to act like it.
5. Law and order situation is also a major threat for the Bankislami. Because it run
the bank in that country where the terrorism is in the extreme.
6. Threats are become more and more because the local as well as the international
banks are came in to play. And the competitions are going to brutal stage.

23
7. Due to the globalization of the world many banks are using internet and online
banking system. So this is also a great challenge for the Banks.
8. The most important and big threat for the bank is the world free trade. When the
world are become free trade zone then the lower Income organization will kick
out from the market.
13. During my internship days I found some other problems which the employee and
the customer is faced,
14. The employee is always stressing of the work. Because the workload as well as
the timing of the Bank is too much high.
15. The second thing is that the stress is just because of the less bank staff. The bank
need double shift. Like from 8 to 1 and then from 1 to 6 o’clock.
16. The communication of the employee and mostly of the first line manager is not
good. They need to communicate with customer in a best way.

17. The BDOs did not satisfy the customer as well as they need. The bank need that
they give them training on ethics and on convincing.

4.5 PEST ANALYSIS:

Pest analysis is also important for the organization as the SWOT analysis is
important. In pest analysis,
P stands for political factor.
E stands for economics factor.
S stands for the social factor and
T stands for the technological factor.
Now will discuss everyone in detail that how they affect the bank.

4.5.1 POLITICAL:

 Political factors are that related with the politician. Because with the changing in
the political parties they also changes their way of government and policies.
 Some of the political leader did not pay back the loan which he or she is take from
the bank. And the bank did not take any actions.

24
4.5.2 ECONOMIC:

 The economic situation of the country also means a lot, because when
the people did not have any money for the investment so the banks will
lead to bankruptcy.
 When there is inflation in the country so with that the value of money
goes down and this situation is not good for the banks.

4.5.3 SOCIAL:

 The society of the Pakistan is contained mostly of the Muslims. So

this situation is goes in the favor of the bank.
 When the bank Is providing information to the general peoples and
also arrange some seminars, so it will also goes in the favor of the
bank.
 If the society is supporting so it will also help the customer.

4.5.4 TECHNOLOGY:

 Technology is also affect the customer in both manners either in

positive or in negative aspect.
 The Bankislami need to update the technology.

 Bankislami Pakistan limited is also upgrading its existing in-house

developed branch banking software with Core Banking System
(CBS), a product of SunGard. Being a centralized and customer
based system, it will provide 360 view of customers and integrated
retail and corporate banking modules, thus ensuring better control for
the bank and refined services for customers.

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CHAPTER 5

RECOMMENDATION ANDCONCLUSION

5.1 RECOMMENDATIONS:

I am not able to recommend anything, because the strategies and tactics are made very
experienced peoples. But as internee I also has some recommendations.

a. I recommend to the bank is that they adopt the latest and good
technology. With the help of that they will create a strong competitive
edge over others.
b. The bank need to hire fresh and talented peoples. Because the fresh
employee are more hard worker than the old. And they also have more
education than others.
c. The bank need to advertise more and more because with advertisement
they will took a competitive edge. Here in BATTAGRAM they need to
advertise through bill boards, sign boards, penaflix and pamphlets.
d. Up to some extent they need to arrange the seminars and other
workshops for the general public. And in that they need to invite the
molvi’s and other religious scholars of the society.
e. They need to install the latest software’s for the sake of reducing of the
manual work. With he help of that the employees will be stress free
and also their work burden will be decrease.
f. The bank needs to provide on job training for their employees. With
the help of that their stamina will increase, and they will more
opportunities of the success.
g. The bank should need to monitor and evaluate the performance of the
each employee on regular and consistent basis. With that step the
employees will sincere and specified to their job.
h. The bank should identify a unique policy for their employees, which is
equal for everyone. And it will practice in each branch.
i. There will also be ladies staff I a Islamic in every branch. And we
claim that we are an Islamic bank so we need to be a separate counter
for ladies.
j. The behavior of the employees should be changed and they need to
provide classes on ethical behavior and other responses of the
employees toward the customers.

26
 k. Bankislami needed to start phone banking and other means of
communication with the customers. Like on Eid day or other festivals
of the country they need to communicate with them.
l. In branch they need to start a friendly environment in the branch.
m. If there will any conflict between the employees so we need to
overcome these conflicts as soon as possible.
n. The bank should need to identify the job specifications and also give
separate cabins to everyone.
o. The bank needs to award the employees on monthly basis, like
employee of the month etc.

5.2 CONCLUSION:

a. My experience in the Bankislami Pakistan limited in

BATTAGRAM branch was so great. Which enable me to write
a report on my internship.
b. The whole staff of the bank and especially the customer service
manger Mr. Ali Asar was so great and helpful person.
c. I really enjoyed the company of the staff of the Bankislami
Pakistan limited. They are really good and responsible persons.
d. Moreover every branch of the Bankislami Pakistan limited is
pioneer with modern technology. And they are connect with
each other.
e. The most important thing is that they provide best facility of
the ATM. Which work 24 hours in a week.
f. During my analysis I concluded that the Bankislami employees
is high qualified as well as a good and responsible persons.
g. Bankislami has contained on highly educated and qualified
staff, which enable the bank to achieve their tasks on time.
h. Every employee of the Bankislami Pakistan limited has got
specialized and extra knowledge about Islamic banking. Which
help them in future and as well as in the achieving of goals.
i. The Bankislami system is autocratic. The employees of the
bank are nt able of taking a minute decisions. So they need to
empower the processing department for taking some sort of the
decisions.

j. Mostly the employees are forced to give over time and are not
properly compensated for their over time work.

27
k. Though there is training department in head office, but the
training programs are usually confined to the managerial staff,
there is a need of training at all the levels.

l. There are no subdivisions of Marketing department at the

regional or branch level. So when different problems related to
Marketing are raised, they are left unaddressed.

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