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It is necessary to know the relevance between theoretical and practical knowledge. So a

student can only claim himself as a student of true knowledge by virtue of preparing such kind of
internship report.
It is time to thank all who helped me to complete this project successfully. First of all, I
offer my heartfelt gratitude and thanks to Almighty Allah who has given me the learning power
in the earth.
Shibli Noman Khan, School of Business, Independent University Bangladesh, is my
academic supervisor. I am grateful to him for the flexibility in the work scope he provided me.
His encouragement and advice worked as a foundation stone for this report. I convey my
gratitude for his time and continuous support.
Mr. Uzzal Kumar Nandi (CFO) & Company Secretary, and Syed Abed Hasan, Manager
Finance and Accounts of IIDFC are my external supervisors who have allowed me the
permission to complete my internship in their department. I am grateful to them for the flexibility
in the work scopes they provided me. Their encouragement and advice worked as a foundation
stone for this report. I convey my gratitude for their time.
Besides, I also owe a grate debt of gratitude to Mr. Tapan Dey, Manager Finance and
Accoutns, and Mr. Al Rajib Mahmood, Asst. Manager Finance and Accounts of IIDFC, who
have continuously helped and inspired me to know and adapt the inner-world of IIDFC along
with providing the informative information preparing the report.
It is Mr. Sanjoy Karmaker (Senior Officer) and Ms. Rehana Zaman (Senior Officer) of
IIDFC to whom I express my cordial indebtedness. I have spent maximum time of my internship
tenure with them. So far as I have got in internship thoroughly, everything has been performed
by them. It is really a tremendous collaboration which cannot be said in words that I have
achieved from them.

Shaker Raza
Intern (IIDFC)
Independent University Bangladesh.
ID: 0520207

Chapter : 1 Introduction.

1.1 Company background:

Industrial and Infrastructure Development Finance Company Limited (IIDFC)
was incorporated in Bangladesh on December 19, 2000 as a public limited company with
the collaboration of heterogeneous financial institutions like commercials banks (both
from private and public sector), insurance companies and the Investment Corporation of
Bangladesh (ICB). The company was licensed under Financial Institution Act, 1993 by
Bangladesh Bank on January 23, 2001 and started operation from May 2001. Since the
inception, IIDFC ahs played an active role in providing alternative source of term and
capital assets financing to the private sector. Through hard work and strive for
excellence, IIDFC has not only established lease financing as an efficient and quality
financial service but also laid foundation for the burgeoning growth of various financial
services like equity support, syndicated financing, short term financing and financial
packaging. IIDFC has upheld its commitments towards the development of the financial
service sector by offering high quality services to the local entrepreneurs. To ensure
steady growth as well as to add more value to the shareholders of the company, IIDFC
engages in adopting medium term and long term strategies related to available options
and potentials. In this endeavor, IIDFC has already sought for the permission of the
Securities and Exchange Commission (SEC) to expand its product line by including
merchant banking activities like issue management, underwriting and managing mutual
fund. This level of commitment to serve the clients leads IIDFC towards a truly multi
product financial institution.

1.2 Vision Statement of IIDFC:

“To be the first reliable partner in the financial market”.

1.3 Mission Statement of IIDFC:

• To earn our customers’ loyalty for creating values in their eyes.

• To enhance the product line and diversify in the conformity with the existing ones.
• To achieve the local market first and then penetrate in the foreign market.
• To accept the most up-dated technologies giving the prompt support to the interested
• To conduct the operational activities prudently and provide the profits and growth which
will assure IIDFC’s ultimate success.
• To ensure the sharing and caring inner world of IIDFC.
• To keep the professionalism in recruiting the officials and others.
• To keep full respect on Corporate Social Responsibility (CSR).
• IIDFC believes its cent percent successful achieved by its valued employees.

1.4 Objective of IIFDC:

The objective of IIDFC is to promote and finance investments in infrastructure and I
ndustrial sector.

1.5 IIDFC at present:

IIDFC has stepped into its tenth years of consecutive commercial operation in
April 2010. So far it has been able to achieve creditable success in the past years. IIDFC
has built a reputation for being an excellent provider of financial services. The
development of such kind of reputation has been possible not just because IIDFC only
provides excellent financial services but also the clients after sales service in the form of
quality advisory services and comprehensive financial packages. Only within a span of
mere six years the company has been able to register a substantial growth because of its
attitude to develop a long term professional relationship with the clients and nourish
Presently, IIDFC is working with an efficient and active management team. The
management team is headed by the Managing Director of the company,. The major
activities of IIDFC are divided in into three distinctive departments. They are Operations,
Structured Finance and Finance & Accounts.

1.6 Departments of IIDFC.
1.6.1 Operations:
The operations department is being headed by the Executive Vice President of the
company. This department is responsible for attracting new clients, maintaining the
existing ones, providing the desired financial services to the clients and monitoring the
progress of the services as well. The operations department is divided into three
distinctive branches. They are Corporate Finance, SME and Monitoring & Recovery. The
Corporate Finance department is headed by an AVP and the AVP is the only person in
this sub wing who reports directly to the Executive Vice President – Operations and also
to the Managing Director. The other members of the department are two Managers, one
Deputy Manager, four Assistant Managers and four Management Trainees. Normally,
there are team consisting of two persons in the corporate finance department and each
team is responsible for attracting new clients, maintaining the existing ones, providing the
desired financial services to the clients and monitoring the progress of the services as
IIDFC started SME financing in the year 2006. this department is headed by an
AVP and AVP directly reports to the Head of Operations. There is also Recovery and
Monitoring wing and it is headed by a Manager. He directly reports to the Head of

1.6.2 Structured Finance:

Structured Finance department is headed by a Vice President and the VP is
directly responsible to the Managing Director. IIDFC is active in syndication market and
has acted as lead arranger to a number of syndication facilities for large loans arranges by
it. Structured Finance encompasses syndicated fund arrangement including cross-border
syndication and other financial advisory services.

1.6.3 Finance & Accounts:

Finance & Accounts department is being headed by an Assistant Vice President of
the company. He is also the Company Secretary of IIDFC. This AVP is directly

reportable to the Managing Director. Though this department is very thinly staffed the
activities are not that simple. To ensure coordination and avoid any kind of conflict
within, the department has been divided into two separate sections.
The head of Operations is the center of most of the activities in IIDFC. Since
treasury, recovery and monitoring, corporate finance, SME finance all these departments
are directly under him/her, the Head of Operations basically directly responsible to carry
out the mandate given by the board of directors regarding policy and guidelines of
providing credit facilities to the clients. Even though there is a structured finance
department, the operation department also arranges syndicated credit facilities for its
corporate clients.

Fig 1.1 Departments Chart of IIDFC


Operations Structured Finance &

Finance Accounts



& Recovery


Fig 1.2 Organizational Chart of IIDFC

Board of


Head of Head of Structured Head of Accounts

Operations Finance(VP) & Admin (AVP)

Head of SME Head of Head of Head of Manager Manager

Financing Corporate Treasury Recovery &
Finance Monitoring

Manager Manager Manager Manager Deputy Manager


Deputy Deputy Deputy Deputy Assistant Assistant

Manager Manager Manager Manager Manager Manager

Assistant Assistant Assistant Assistant Sr. Officer

Manager Manager Manager Manager Officer

Management Management Management

Trainee Trainee Trainee

Sr. Officer

Chapter 2: Human Resource Management of IIDFC.

2.1 Defining Human Resource Management.

Human Resource Management (HRM) is both an academic theory and a business
practice that addresses the theoretical and practical techniques of managing a workforce.
The theoretical discipline is based primarily on the assumption that employees are
individuals with varying goals and needs, and such should not be thought of as basic
business resources, such as trucks and filing cabinets. The field takes a positive view of
workers, assuming that virtually all wish to contribute to the enterprise productively, and
that the main obstacle to their endeavors are lack of knowledge, insufficient training, and
failures of process.
HRM is seen by practitioners in the filed as a more innovative view of workplace
management than the traditional approach. Its techniques force the managers of an
enterprise to express their goals with specificity so that they can be understood and
undertaken by the workforce and to provide the resource needed for them to successfully
accomplish their assignments. As such, HRM techniques, when properly practiced, are
expressive of the goals and operating practices of the enterprise overall.
Nowadays, the more traditional synonyms such as personnel management are
often used in a more restricted sense to describe those activities that are necessary in the
recruiting of a workforce, providing its members with payroll and benefits, and
administrating their work-life needs. These activities can require regulatory knowledge
and effort, and enterprise can benefit from the recruitment and development of personnel
with these specific skills.
The goal of human resource management is to help an organization to meet
strategic goals by attracting, and maintaining employees and also to manage them
effectively. The basic premise of the academic theory of HRM is that humans are not
machines; therefore it is needed to have an interdisciplinary examination of people in the
workplace. Fields such as psychology, industrial and organizational psychology,
sociology, and critical theories: postmodernism, post-structuralism play a major role.

2.2 The Human Resources of IIDFC:
In 2009, the total executives in the employment of the company were 86 including
the CEO. For coping with the increased volume of business, opening of a branch in
Chittagong and recruitment of core staff for the share trading operation, a total of 16 new
executives were recruited during 2008 taking the total number to 102. For training,
IIDFC extensively uses the training programs offered by IDCOL, BIBM and senior staff
members regularly participate in seminars and workshops organized by different
institutions. During 2008, there has been a change in the CEO of the company and Mr.
Md. Asaduzzaman Khan, joined the company as the CEO after taking voluntary
retirement from his position as the Executive Director of Bangladesh Bank.

Chapter 3: Human Resource Practices in IIDFC.

3.1 Appointment, Promotion & Transfer.

3.1.1 Nature and classes of posts:

(a) Regular: Regular posts of IIDFC are those sanctioned posts carrying definite scale of
pay. The classification and designation of the regular posts of IIDFC are stated in table
1.1 below. Any changes, addition, alteration or modification in the classification and
designation of the posts are required prior approval of the board or of its delegated
(b) Casual / Temporary: Casual/Temporary posts are created for (i) the performance of
duties of a casual or intermittent nature, or (ii) the execution of a particular work or any
service purchased from outside.
(c) Appointment on Contract: All appointments on contract are governed by the terms and
condition mention in the contract unless.

Table 1.1 (List of Executives):

Grades Designation
Executive Grade – X Managing Director

Executive Grade – IX Deputy Managing Director
Executive Grade – VIII Executive Vice President
Executive Grade – VII Senior Vice President
Executive Grade – VI Vice President
Executive Grade – V Assistant Vice President
Executive Grade – IV Manager
Executive Grade – III Senior Executive
Executive Grade – II Executive
Executive Grade - I Junior Executive
The general staff members comprise of the following:
1. Messengers, Guards and cleaner
2. Assistant Officer, Computer Operator, & Receptionist.
The Drivers, maintenance staff, cleaners and tea-boys etc. are not regular staff members of
the company and are procured from outside.

3.1.2 Nationality:
No person is appointed to any post in the service of IIDFC unless he/she is a citizen of
Provided that the Board may, in special cases, waive the condition in favor of non-
resident Bangladeshis or other foreign nationals subject to fulfillment of conditions
governing employment of foreign nations in Bangladesh.

3.1.3 Age:
The age of all new recruits at entry point into IIDFC’s service are governed as per following
(a) At the time of appointment to the post of an executive, the age of the candidate is not less
than 21 (twenty one).
(b) The age of a candidate in case of general staff members is not less than 18 (eighteen)

3.1.4 Procedure for recruitment:
(a) All appointments to posts specified in Table 1.1 are made in accordance with the criteria
in table 1.2 by:
i. Direct recruitment;
ii. Promotion;
iii. On contract.
(b)i. There is a Higher Selection Committee consisting of the Chairman, the Vice
Chairman, one Director and the Managing Director who are the selection and
recommending authority for all Executive posts from Grades V to X.
ii. For executive posts from Grades I to IV, the Selection Committee consist of the
Chairman, the Vice Chairman and the Managing Director.
(c) The Appointment Authority for all Executive Posts is the Board of Directors who acts on
the recommendation of the Selection Committees. The Board, however, delegate this
authority, in part or in full, to the Selection Committee.
Table 1.2 (Qualification and experience of executives):
Sl Position Appointment Academic Experience
by Qualification
1 Deputy Managing Recruitment * Masters 18 years experience in banks/NBFIs
Director Promotion 3 years experience as EVP
2 Executive Vice Recruitment * Masters 15 years experience in banks/NBFIs
President (EVP) Promotion 3 years experience as SVP
3 Senior Vice Recruitment * Masters 12 years experience in banks/NBFIs
President (SVP) Promotion 3 years experience as VP
4 Vice President Recruitment * Masters 10 years experience in banks/NBFIs
(VP) Promotion 3 years experience as AVP
5 Assistant Vice Recruitment * Masters 8 years experience in banks/NBFIs
President (AVP) Promotion 3 years experience as Manager
6 Manager Recruitment * Masters 7 years experience in banks/NBFIs
Promotion 3 years experience as Sr. Executive
7 Senior Executive Recruitment * Masters 6 years experience in banks/NBFIs
Promotion 3 years experience as Executive
8 Executive Recruitment Masters At least 2 first classes including one 1st
class in honors/masters with no 3rd class.
MBA, Cacc At least two 1st class and minimum CGPA
should be 3.25
Promotion 3 years experience as Jr. Executive
9 Junior Executive Recruitment Masters Must have at least one first class with no
3rd class.
B.B.A At least one first class with no 3rd class
and minimum CGPA should be 3.00

* Must have at least one first class with no 3rd class including honors in the same subject.

3.1.5 Procedure for Selecting a Candidate for Direct Recruitment:

(a) Direct recruitment procedure is initiated if suitable candidate or adequate numbers of
candidates for promotion are not available within the Company.
(b) Each Selection Committee decides on the methodology for publicizing the vacancies,
short listing and on the selection procedure keeping in view that fairness and
transparency in the recruitment procedure at all times is maintained.
(c) Merit and experience, wherever applicable, is the basis of selection of a candidate.

3.1.6 Letter of appointment & etc.:

(a) The offer of appointment is conform to salary and allowances, probability period, leave
entitlement, job description, joining report, etc. or any other form is prescribed by the
Competent Authority and a copy thereof is signed by the appointee is retained by the
Company as a token of acceptance and future record.
(b) Upon entering the service of the company, each employee signs the declaration of fidelity
and secrecy agreement in the prescribed form.

3.1.7 Probation & Confirmation:

(a) Appointments up to the post of Executive is on probation for a period of one year which
may be reduced or extended by an additional six months or more at the discretion of the
Appointing Authority.
(b) A probationary employee is eligible for confirmation in the specified post subject to his
successful completion of the probationary period.
(c) The Confirmation of service takes effect on and from the date as specified in the letter of
(d) The services of drivers, messengers, cleaners, guard and tea boy etc. is procured from out
side as and when required and such discretion lays with the Managing Director. The
Managing Director, however, files a written statement to the Board of such action for
their perusal.

3.1.8 Promotion:
(a) Promotion is not claimed as a matter of right. The criteria for promotion to a higher post,
if available, is merit-cum-seniority. A person becomes eligible for promotion he has
satisfactory record of service and meets the criteria for promotion as specified in Table
(b) Promotion of the employees fulfilling the above criteria up to the rank of Senior
Executive is decided by the Managing Director. Promotion of the employees above the
rank of Senior Executive is recommended by the Managing Director to the Competent
(c) Promotion decided by the Managing Director and the Competent Authority is however
reported to the Board for information and perusal.

3.1.9 Transfer & Posting:

(a) All jobs are transferable in IIDFC.
(b) The Managing Director transfer employee of the company from one branch to another if
the situation demand and, however, keep the competent authority informed oh such

3.2 Pay and Allowances:

3.2.1 Pay and Allowances:

The scales of pay and allowances of the employees, both executive and non-executives,
of the company are those as approved by the Board of Directors and as amended from time to
time. Table 1.3 specifies the scale of pay & allowances as approved by the Board of

Table 1.3 (Salary Scale):

Grade Designation Salary Tk.
X Managing director As per contract
IX Dt. Managing Director 56,000 to 176,000
VIII Executive Vice President 48,000 to 152,000
VII Senior Vice President 40,000 to 128,000
VI Vice President 35,200 to 107,200

V Asst. Vice President 30,400 to 86,400
IV Manager 24,000 to 64,000
III Senior Executive 16,000 to 44,000
II Executive 12,800 to 32,800
I Junior Executive 8,000 to 22,000
- Off. Assistant, Computer 5,600 to 12,400
Operator, & Receptionist
- Messengers and Peons 3,200 to 7,200
* Allowances are paid based on Basic Salary as follows:
(a) Housing allowances: 50% of Basic Salary
(b) Conveyance allowance: 5% of Basic Salary
(c) Medical allowances: 5% of Basic salary
(d) Entertainment allowances: 5% of Basic salary
* An employee enjoying car facilities are not entitled to conveyance allowances.
* An employee holding designation of Manager or above grade is entitled to Entertainment
* The Board appoints any of the above-mentioned personnel on contract basis on such
terms & conditions, as it deem expedient.
3.2.2 Initial pay:
(a) The initial pay of an employee on first appointment is the minimum to the scale of pay of
the post to which he is appointed.
(b) An Executive/employee, in the case of first appointment, is in recognition to his special
qualification, experience and merit is granted higher initial pay in the scale of pay of the
post by the Competent Authority or Managing Director.

3.2.3 Annual pay:

(a) The annual increment falls due on the anniversary of the date of joining the company or
the date of confirmation or any other date as may be decided by the competent Authority.
(b) When an increment falls due to an employee, the Managing Director, if satisfied with the
performance of the staff members, is sanctions one increment in the approved scale.
(c) For sanctioning more than one increment, in recognition of the outstanding and
meritorious performance of an employee, the competent Authority is authorized to
approve such additional increments on the recommendation of the Managing Director.

(d) Where the performance of an employee is not satisfactory, the Managing Director, stops
sanctioning the increment and put the employee special report for a period not exceeding
6 (six) months, and upon receipt of such report may sanction the increment either
retrospectively or with immediate effect depending on the performance.

3.2.4 Honorarium / Cash Awards:

The Competent Authority grants honorarium or cash reward to any of the
executive/employee of IIDFC for performing such duties which are innovative, occasional in
nature and research and development oriented warranting special recognition.

3.2.5 Festival Bonus:

Eligible employees are entitled to a bonus equivalent to basic pay of one month each
during Eid-ul-Azha and Eid-ul-Fitre irrespective of their faith in religion.

3.2.6 Conveyance Allowances, etc.:

(a) Conveyance allowances are given to an employee at such rates and on such conditions as
are prescribed by the Competent Authority from time to time.
(b) For performance of duties outside the office within the limits of the city of Dhaka, the
employee is reimbursed for expenses on actual basis.

3.2.7 House Rent Allowance/Housing Facilities :

Housing facilities or house rent allowances are given to an employee at such rate
and on such conditions as are determined by the Competent Authority form time to time.

3.2.8 Medical Facilities :

The employees of IIDFC are allowed medical facilities including medical and health
insurance on such scales and on such terms and conditions are determined by the competent
Authority from time to time.
3.2.9 Group Life Insurance:
IIDFC introduces group life insurance scheme for its employees of regular employment
in the company.

3.2.10 Income Tax:
An employee of IIDFC, whose annual income exceeds the exemption limit as set by the
government from time to time is liable for payment of income tax. IIDFC deduct the appropriate
tax from salary for deposit in the government exchequer.

3.2.11 Performance Bonus:

The competent Authority considers grant of performance bonus to the employees out of
profit of the company.

3.2.12 Leave Fare Assistance:

Leave fare assistance of one month basic salary is admissible once every year or two
months basic salary every two years at option of the employee.

3.3 Leave:

3.3.1 General:
(a) In IIDFC leave is not claimed as a matter of right, it is earned by duty only.
(b) Management holds the right to refuse/grant leave for a shorter period than applied for,
revoke leave and recall the employee before expiry of his/her leave.
(c) An employee resumes duties on the expiry of leave initially granted or as subsequently
curtailed or extended. Overstay entails disciplinary action including dismissal from service.
(d) Employees on leave are not allowed to accept any other employment or any office of
(f) Any public or weekly holidays falling within the period of leave are treated as part of the
sanctioned leave.

3.3.2 Eligibility of Various Kinds of leaves:

(a) Casual leave:
i. Casual leave means a leave of casual nature granted to an employee who may be
unable to attend office due to sudden illness or urgent private family affairs.

ii. A total number of 12 days casual leave is admissible to an employee of IIDFC in a
calendar year.
iii. Casual leave are not combined with any other leave and are not accumulated.

(b) Medical Leave:

i. Leave on medical group not exceeding 14 days in a year is granted on full pay
upon production of medical certification from a registered medical practitioner or
the authorized medical officer of the company and accumulation of such leave
restricted to 28 days.
ii. Medical leave exceeding available due is treated as earned leave if she/he has
such leave to his/her credit.
iii. IIDFC is at its discretion grant further medical leave on full pay not exceeding 60
days, half pay not exceeding 90 days, or without pay as decided on a case-to-case

(c) Earned Leave:

i. All employees including the Managing Director of IIDFC is entitled, upon
completion of one year continuous service in the company, earned leave on full
pay for one month and a maximum of 3 months is accumulated.
ii. Every employee goes on earned leave for at least 15 days every year for rest and
iii. Encashment of earned leave, refused on account of exigencies of service, is
considered by the Competent Authority.
(d) Maternity Leave:
i. A female executive/employee who has completed two years service in IIDFC is
entitled to maternity leave for 45 days.
ii. Maternity leave is admissible for more than two occasions during her entire
period of service.
iii. This leave is not debited to/adjusted against any other leave.

(e) Extraordinary Leave:
i. Extraordinary leave without pay is granted to an employee in special
circumstances, when no other leave under these rules is available.
ii. Entitlement of perquisites and other benefits during extraordinary leave is decided
by the Competent Authority on a case-by-case basis.

(f) Quarantine Leave:

i. Quarantine leave is a leave of absence from duty necessitated by an order not to
attend office in consequences of the presence of infectious disease in the family or
household of an employee.
ii. Total number of days of leave on grounds of quarantine & medical is not exceed
20 days in a year.

(g) Study Leave:

Study leave without pay for a period not exceeding two years is granted to a regular
employee to enable him to study or undergo special courses of instruction considered
useful for his services in the company but does not include participation in short
training courses approved by the company. Such leave exceeding two years is not
considered and employee concerned loses his/her lien on the services with IIDFC.

3.4 Retirement, Termination and Release:

3.4.1 Retirement:
Every employee retires from the service of the company on attaining the age of 60.
Provided that, the period of service beyond 60 years of age is extended by the Board for
such period as it deem necessary for the greater interest of the company. In that case, the
extended period beyond 60 years is treated as contract period.

3.4.2 Termination of service:

(a) Probationer or Temporary employee:

The service of a probationer or a temporary employee is liable to termination by the
competent authority without assigning any reason and after giving him one month’s
notice in writing or payment of one month’s pay in lieu thereof, and the probationer or
the temporary employee so terminated is entitled to any form of compensation or
service benefit.
(b) Confirmed Employee:
The competent authority terminates the services of a confirmed employee, without
assigning any reason, by giving 3 months notice or 3 months basic pay in lieu thereof.
(c) Employee on contract:
The service of an employee on contract is terminated by the competent authority as per
terms and conditions stipulated in the contract. \

3.4.3 Resignation:
(a) Confirmed employees:
An employee having confirmed employment in the company resigns or leave the
company without giving 3 months prior notice in writing. A lesser notice period liable
the employee to compensate the company for an amount equal to his/her basic pay for
the period the notice falls short of the stipulated 3 months.
(b) Temporary / Probationary Employee:
The temporary employee of IIDFC resigns without giving one month prior notice in
writing. A lesser notice period is liable the employee to compensate the company for an
amount equal to his/her basic pay for the period the notice falls short of the stipulated 1

3.4.4 Deposit of IIDFC’s property:

On tendering resignation from a post of IIDFC, an employee returns forthwith the
transport, books and other properties, if any, provided to him and/or borrowed by him from
the company and, not later than the date from which his resignation is accepted or he
discontinues his service in the company, hand over the vacant possession of the residential

accommodation, if any provided to him by he company and also make over charge of his
office to an Authorized Executive of the company.

3.5 Gratuity:

3.5.1 Admissibility:
(a) Gratuity is admissible to all employees who rendered services in the company at least 5
years of continuous service, except in the event of death and:
i. have not been dismissed or removed from service as a measure of punishment;
ii. have not resigned, left or discontinued the service without properly complying with
the formalities required therefore and
(b) In the event of death of an employee, gratuity is paid irrespective of the number of year
of service.

3.5.2 Amount:
The amount of gratuity is computed at the rate of 1 month’s Basic pay for each
completed years of service. The last pay drawn is the basis fir such computation.

3.5.3 Nomination:
(a) Each employee is nominated in the prescribed from person who receive the gratuity in the
event of his/her death.
(b) If an employee nominates more than one person under sub rule (a) above, she/he
specifies the share of each nominee.
(c) An employee, at any time, can cancel a nomination and make a fresh nomination by
giving due notice in writing.

3.5.4 Payment in the event of death:

In the absence of any nomination, the amount due to an employee on account of gratuity
on his death is paid to his legal heir or heirs as is determined by a certificate of succession to
be issued by a competent authority acceptable to the company.

3.6 Discipline and Punishment of IIDFC:

3.6.1 Grounds for punishment:

Without prejudice to any provision contained in the rules of IIDFC, an employee, who in the
opinion of the competent authority:
(a) Commits a breach of the provision of the rules; or
(b) Displays negligence in the discharge of his duties; or
(c) Does anything detrimental to the interest and good-will of the company; or
(d) Contravenes instruction issued to him in connection with his assigned official duty; or
(e) Commits a breach of discipline, or is guilt of any other act of misconduct, desertion or
insubordination; or
(f) Is convicted of any offence involving moral turpitude; or
(g) Is inefficient, or has ceased to be efficient, whether by reason of infirmity of mind or
body; or
(h) Is guilt of theft, misappropriation, embezzlement or fraud; or
(i) Is corrupt or may reasonable be considered to be corrupt, because:-
i. She/he is, or any of his dependent or any other person through him or on his
behalf is, in possession (for which he cannot reasonable account) of pecuniary
resources or of properly disproportionate to his known source of income; or
ii. She/he has assumed a style of living beyond his ostensible means; or
iii. She/he has a persistent reputation of being corrupt; or
(j) Is engaged, or is reasonable suspected of being engaged in subversive activities or is
associated with those engaged in subversive activities and whose retention in service is
considered prejudicial to national security;
is liable to be penalized under the rules.

3.6.2 Kinds of penalties:

(a) Minor penalties:
i. Censure
ii. Withholding, for a specified period, of promotion or of increment otherwise
than for unfitness for promotion, or financial advancement;

iii. Stoppage, for a specified period, at a stage of salary
iv. Deduction of an amount equivalent to 7 (seven) days basic pay.
(b) Major penalties:
i. Reduction to a lower post or scale of pay
ii. Recovery from pay or any other account due to the employee of the whole or
part of pecuniary loss caused to the company by the employee due to
negligence or breach of orders.
iii. Compulsory retirement from the service.
iv. Removal from the service.
v. Dismissal from the service. Removal from service does not, but dismissal
from service does, disqualify from future employment under the company.

3.7 Car Facilities & Housing Loan Scheme:

3.7.1 Car Facilities:
(a) General: The “Car Facilities Scheme” is to help the company’s employees to acquire a
car for carrying out their duties and responsibilities more efficiently and expediently.
Under the scheme, the company provides car facility to the executives from Grade – IV
(Table 1.1) to above and whose employment in the company has/have been confirmed.
(b) Eligibility: Interest free car finance facility is provided to the executive unless he/she is,
as per letter of appointment, entitled to a car at the company’s account.
(c) Ceiling of value of car and maintenance allowance:
Table 1.4:
Rank CC of * Finance limit Monthly maintenance allowances
Car / cost of car Fuel Driver Maintenance

DMD & EXP 1600 Tk. 1,500,000 250 Ltr Tk. 5,000 Tk. 7,000
SVP & VP 1500 Tk. 1,000,000 200 Ltr Tk. 4,500 Tk. 6,000
AVP, Manager 1300 Tk. 700,000 150 Ltr None Tk. 5,000
* Including Reg. Cost.
(d) Car Finance Scheme:
i. The car is primarily bought by the company, registered in the name of the company
and reported as Assets of the company.
ii. The company charges depreciation on the vehicles as per company accounting policy.

iii. The company deducts over 60 installments an amount equivalent to 50% of the
purchase cost of the car. The amount is recorded and reported separately as
iv. While the book value of the car becomes zero, the car is transferred to the employee
concerned and the amount deducted as referred to above is taken as sale price of the
car to the employee.
v. Where an employee enjoying a car under the Car Finance Facilities leaves the
company before the time required to reach the book value of the Car at zero value, the
money deducted from his/her salary by the company is forfeited and no claim for
such money is acceptable in any court of law considering that such deduction from
salary and forfeiture of the such deducted amount are made according to the
agreement by and between the company and the employee.

3.7.2 Housing Loans:

The company allows housing loan to an employee for such an amount and at such rate of
interest approved by the Board.

Chapter 4. Description of my work in IIDFC

Types of duties I performed and works I learnt.

Being a part of the HR department of IIDFC, there are plenty of duties and
responsibilities that are needed to be performed. Among all the duties and responsibilities of
the HR department, pay slip of every month, CV sorting, salary sheet update, etc. related
activities are the major part of my works. During my internship period at IIDFC, my major
duties are as follows:

* Preparing Pay Slip of each employee:

At the beginning of every month all the employees are paid a sum of amount in
taka as the salary of the last month. A pay slip is given to each and every employee, from
the messengers, Junior Executives to Deputy Managing Director, where all the details of
the pay is mentioned. For example, the basic salary, the amount for the car facilities,

medical allowances, entertainment allowances, etc. and the total salary. These are the pay
slips which are given individually to all the employees of IIDFC for their confirmation,
and based on the pay checks are given to them.
* CV Sorting:
During the period of my internship, IIDFC has decided to recruit four officers for
four different posts. More than one thousand CVs have been submitted by the interested
candidates. Among all the CVs the specific CVs for the exact posts are sorted out, along
with checking the information in the CVs which fulfills the requirement of the particular
posts, for example, required qualification, experience, etc. After sorting the CVs are sent
to the recruitment board for the selection. Among those twenty five CVs are selected for
each post. The detail information of those candidates is entered into the database for
further use of the recruitment board.
* Computerizing the salary information of the employees:
Till 2009 IIDFC had no computerized system for the salary information of each
employee. All the information was saved manually in hard copies. From the beginning of
2010 IIDFC has started to store the salary information in the computer database system.
Since IIDFC started its business, all the salary information was saved in hard copies and
according to those copies the information is fed into the computer database system.

Chapter 5: Conclusion.
It was very finicky to work in the environment of one of the largest financial
institutions in Bangladesh. IIDFC provides one of the best financial services to their
customers and also their employee that is conducted by HR Division. By working in the
HR department the knowledge was learnt would be helpful enough to sustain with real
world situation.


• Annual Reports of IIDFC.

• The IIDFC Employees’ service rules 2002

• Meeting challenges of capacity building, The Daily Star, 23 August, 2008