Faculty of Business Administration

AMERICAN INTERNATIONAL UNIVERSITY-

BANGLADESH
(AIUB)

INTERNSHIP AFFILIATION REPORT ON

General Banking Activities of Al-Arafah Islami Bank Ltd. Pallabi
Branch

An Internship Report Presented to the Faculty of Business

Administration in Partial Fulfillment of the Requirements for the
Degree Bachelor of Business Administration (BBA)

Supervised By
Md. Joynal Abedin
Assistant Professor

Submitted By
Md.Nabil Ibrahim
ID # 13-23281-1
Major: Accounting & Finance

Date of Submission: 07.12.2016

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 INTERNSHIP AFFILIATION REPORT ON
General Banking Activities of Al-Arafah Islami Bank Ltd. Pallabi
Branch

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 Letter of Transmittal

Date: December 07, 2016

To
Mr. Roomee Tareque Moudud, FCMA
Director, Office of Placement and Alumni (OPA)
American International University – Bangladesh

Subject: Submission of Internship Affiliation Report

Dear Sir:
With due respect, I would like to submit the report on “General Banking Activities of Al-Arafah Islami Bank
Ltd. Pallabi Branch ” which was the topic of my internship program. I would like to say that this report
was prepared by me under the supervision of my internship supervisors.

I believe that this internship program has given me a vast opportunity to enrich both of my knowledge
and experience. I made my best effort to fulfill the objective of the report and believe that it will meet
your expectation.

In preparing this report I have tried utmost to include all the relevant information and analysis to make
the report comprehensive as well as workable one.

I, therefore, hope that you will enjoy reviewing this report.

Thank you.
…………………………………………..
Md. Nabil Ibrahim
13-23281-1
Major – Accounting and Finance
American International University – Bangladesh

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 Letter of Endorsement

The Internship Affiliation Report entitle “General Banking Activities of Al-Arafah Islami Bank Ltd. Pallabi
Branch ” has been submitted to the Office of Placement & Alumni, in partial fulfillment of the
requirements for the degree of Bachelor of Business Administration (BBA), Major in Accounting &
Finance, Faculty of Business Administration on 7th December 2016, by Mr. Nabil Ibrahim, ID # 13-
23281-1. The report has been accepted and may be presented to the Internship Defense Committee for
evaluation.

(Any opinions, suggestions made in this report are entirely that of the author of the report. The
University does not condone nor reject any of these opinions or suggestions).

Md. Joynal Abedin

Assistant Professor
Faculty of Business Administration
Internship Supervisor

ii

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 ACKNOWLEDGEMENTS

I have incurred many debts of gratitude over the last three months during the preparation of
this report. First and foremost, I would like to pay my gratitude to the Almighty Allah for
giving me abilities to work hard. I am also grateful to my parents who provided me with the
necessities of life since my early childhood.

The report title as named General Banking Activities of Al-Arafah Islami Bank Ltd Pallabi Branch has
been prepared to fulfill the requirements of BBA degree. I am very much fortunate that I have
received utmost and sincere guidance, supervision and co-operation from various people
while preparing this report.

Many people contributed in the making of this report. First of all, I would like to thank my
academic supervisor of the internship program Md. Joynal Abedin, Assistant Professor at
American International University - Bangladesh (AIUB) for giving me the opportunity of
preparing this report & for his effortful supervision. He also provided me some important
advice and guidance for preparing such type of new idea-based report. Without his help, this
report could not have been a comprehensive one.

I would also like to dedicate special thanks to the AVP and Manager Arif BIllah Mithu and
Executive Officer Mrs. Abida Sultana of Al-Arafah Islami Bank Ltd. Pallabi Branch for
preparation of this report.

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 iii

Executive Summary

After last semester of Bachelor of Business Administration (BBA) program, I have done my
internship in AL-Arafah Islami Bank Limited to have a practical exposure on banking
activities. The topic of my internship report is “General Banking Activities of Al-Arafah
Islami Bank Ltd. Pallabi Branch”.

This Report represents the working experience on private sector conventional private
commercial Islamic Bank operated in Bangladesh named “Al-Arafah Islami Bank Limited”
as internship report for BBA Program. Bank is a financial institution who provides various
kinds of financial services like taking deposits, giving loans, receiving bills and so on. Banks
act as financial intermediary. As a financial intermediary the banks organize money from the
public in the form of deposits as well as borrow funds from the banking system in order to
providing credit in the economy. Moreover, now a day’s Banks are performing further roles
in the financial system. From the history we can know that Al-Arafah Islami Bank is serving
different kinds of financial services. It is now one of the leading Islamic banks in Bangladesh.
It has a good customer base and the bank is offering some new products to make the
customer life easier. Al-Arafah Islami Bank is trying to fulfill the keen needs of the people
with time to time.

This internship report is prepared on the basis of three months realistic experience at Al-
Arafah Islami Bank Limited. After completing this internship program, I have learned a lot
about the practical situation of a financial institution particularly concerning the General
Banking Activities. This will help me to realize the theoretical acquaintance with the practical
job environment in many ways.

This internship report mainly consists of the existing general banking activities. I have also
made an effort to learn some lessons for my future banking carrier. At last I’ve made efforts
to give some suggestions and end up with a summary.

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 iv
TABLE OF CONTENTS

Table Of Contents Page no.

Letter of Transmittal i
Letter of Endorsements by the Supervisor ii
Acknowledgements iii
Executive Summary iv
Chapter 1: Introduction
1.1.Rationale 1
1.2.Objectives 1
1.3.Background 2-9
Chapter 2: Activities Undertaken
2.1.Organization Wide 10-16
2.2.Other Relevant activities 16-18
Chapter 3: Constraints &challenges
3.1.Observed in the organization 19
3.2.Academic Preparation 19-20
3.3..Missing knowledge and skill that needed to be learned in the university 20
Chapter 4: Lessons Learned From The Internship Program 21
Chapter 5: Concluding Statement
5.1. Recapitulation/Summary 22
5.2. Suggestions Addressing the Challenges 22
References 23

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1.1 Rationale of the study:

To complete BBA program in AIUB a student need to complete an internship program of three
months under proper supervision of an organization followed by writing a report on the basis of
what he or she have learnt during the period of internship. The report is the fulfillment of the
requirement for the evaluation process of the internship program. The report titled “General
banking activities of Al-ArafahIslami Bank Limited” is conducted on the basis of my practical
experience of three month long internship at Pallabi branch of Al-ArafahIslami Bank Limited.
After consulting with my faculty supervisor Mr. JoynalAbedin professor of Finance department
of AIUB and under the direction of my organizational supervisor Abida Sultana, Executive
Officer of Pallabi branch, Al-ArafahIslami Bank Limited, I have prepared this internship report
with the mentioned topic. I am interested to undertake this report to complete my internship
program as well as my BBA program.

This report is important because it will help us to understand the difference between the banking
activities of an Islamic and non-Islamic bank. This report will help me to express my practical
knowledge and my corporate experience during the time of my internship session.

1.2 Objectives:
Broad objective:The main objective of the report is to give an overview about the general
banking activities of AIBL and give an in-depth description about the work I have performed
during my internship program.

General Objective
 To explain the general banking activities of AIBL.
 To analyze total procedure of Al ArafahIslami Bank Ltd. in general banking
 To analyze the performance of the specific branch and the bank as a whole.
 To achieve the practical knowledge about general banking of AIBL.
 To know about the different scheme, policy, procedures of AIBL
 To relate theoretical knowledge with practical field
 To identify the problems of AIBL prevailing in its banking system.
 To suggest some possible recommendations to overcome the problems.

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 1.3) Background
1.3.1Profile at a Glance:
Name of the Company: Al-ArafahIslami Bank Limited.
Legal Identity: A public limited company registered in
Bangladesh on 18th June 1995, under the
companies Act 1994 and enlisted in Dhaka
Stock Exchange Ltd. & Chittagong Stock
Exchange Ltd
Nature of Business: Commercial Banking based on Al-Quran
&Sunnah
Registered Office: Head Office
Peoples Insurance Building (6th – 9th Floor)
36, Dilkusha Commercial Area
Dhaka-1100, Bangladesh
SWIFT Code: ALAR BD IS (means Branch Code)
E-Mail: aibl@al-arafahbank.com
Webpage: www.al-arafahbank.com

1.3.2 HistoricalBackground of Al-ArafahIslami Bank LTD:

Al ArafahIslami Bank Ltd was established (registered) as a private limited company on 18 June 1995.
The inaugural ceremony took place on 27 September 1995. The authorized capital of the Bank is
Tk.15000.00 million and the paid up capital is Tk. 9469.58 million as on 31.12.2015. Renowned
Islamic Scholars and pious businessmen of the country are the sponsors of the Bank. 100% of paid up
capital is being owned by indigenous shareholders.
The equity of the bank stood at Tk. 1923.61 crore as on 31 December 2015, the manpower was 2978
as on 21 September 2016 and the number of shareholders was 41053 as on 10 April 2016. It has
achieved a continuous profit and declared a good dividend over the years. High quality customer
service through the integration of modern technology and new products is the tool of the bank to
achieve success. The bank has a diverse array of carefully tailored products and services to satisfy
customer needs.
The Bank is committed to contribute significantly to the national economy. It has made a positive
contribution towards the socio economic development of the country with 137 branches of which 23 is
AD throughout the country.
1.3.3 Vision

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  To be a pioneer in Islami Banking in Bangladesh and contribute significantly to the
growth of the national economy.

1.3.4 Mission

 Achieving the satisfaction of Almighty Allah both here & hereafter.

 Proliferation of Shariah Based Banking Practices.
 Quality financial services adopting the latest technology
 Fast and efficient customer service.
 Maintaining high standard of business ethics.
 Balanced growth.
 Steady & competitive return on shareholders' equity.
 Innovative banking at a competitive price.
 Attract and retain quality human resources
 Extending competitive compensation packages to the employees.
 Firm commitment to the growth of national economy.
 Involving more in Micro and SME financing.

1.3.5 Commitments

 Ours is a customer focused modern Islamic Banking sound and steady growth in both
mobilizing deposit and making quality Investment to keep our position as a leading Islami
bank in Bangladesh.
 To deliver financial services with the touch of our heart to retail, small and medium scale
enterprises, as well as corporate clients through our branches across the country.
 Our business initiatives are designed to match the changing trade & industrial needs of
the clients.

1.3.6 Special features of the bank

 All activities of AIBL are conducted under a profit/loss based system according to
Islamic Shariah to get the nation rid of Usury.
 Its investment policies under different modes are fully Shariah compliant and well
monitored by the board of Shariah Council.
 During the year 2007, 70% of the investment income has been distributed among the
Mudaraba depositors.

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  In 2008, AIBL has included online banking in its wide range of services. Bangladeshi
software has been introduced in this feature to promote the local developers.
 AIBL regularly arranges its AGMs (Annual General Meeting). Whenever needed
EGMs (Extraordinary General Meeting) are also arranged.
 AIBL regularly pay dividend to our valued shareholders. For the year of 2013, we
declared 13.50% bonus dividend to our shareholders.
 AIBL believe in providing dedicated services to the clients imbued with Islamic spirit
of brotherhood, peace and fraternity.
 The bank is committed towards establishing a welfare-oriented banking system to
meet the needs of low income and underprivileged class of people.
 The Bank upholds the Islamic values of establishment of a justified economic system
through social emancipation and equitable distribution of wealth.
 Following the Islamic traditions, it is assisting in the economic progress of the
socially deprived people; in the creation of employment opportunities and in
promotion of rural areas to ensure a balance development of the country.
 The Bank believes in social and philanthropic activities and has established AIBL
English Medium Madrasha and AIBL Library. More endeavors will inshallah follow
in future.

1.3.7 Organization Structure of AIBL

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 Figure 01:

1.3.8 Schemes of AIBL

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 1. Al Wadiah Current Deposit (CD)
2. Mudaraba Short Notice Deposit (SND)
3. Mudaraba Savings Deposit (MSD)
4. Mudaraba Term Deposit (MTDR)
5. Monthly Profit Based Term Deposit (PTD)
6. Monthly Installment Based Term Deposit (ITD)
7. Al-Arafah Monthly Hajj Deposit (MHD)
8. Al-Arafah Termed Hajj Deposit (THD)
9. Monthly Installment Based Marriage Savings Investment Scheme (MIS)
10. Al-Arafah Savings Bond (ASB)
11. Foreign Currency Deposit (FCD)
12. Pension Deposit Scheme (PDS)
13. Cash Waqf Deposit Scheme (CWD)
14. MudarabaLakhpoti Deposit Scheme (LDS)
15. Mudaraba Millionaire Deposit Scheme (MDS)
16. Mudaraba (Special) Pension Deposit Scheme (MSPDS)
17. MudarabaKotipoti Deposit Scheme (MKDS)
18. Mudaraba Double Benefit Deposit Scheme (MDBDS)
19. MudarabaTripal Benefit Deposit Scheme (MTDBS)

1.3.9 Capital Status:

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Name of the Share Holder No of Shares Amount in Tk. % of Shareholdings
Al-ArafahIslami Bank Limited 49,000,000 490,000.000 98.00%
(Parent Company)
AIBL Capital Market sevices 1,000,000 10,000,000 2.00%
Limited (Sister Concern)
TOTAL 50,000,000 500,000,000 100.00%
1.3.10 Capital resource:

Bank’s main source of earning is receiving deposits from the clients and investing them in profitable
projects and earns profit from the investment. As AIBL is an Islami bank it follows the Islamic rules
and regulations while investing in a project. It does not invest its client deposits in an unethical
project or projects which are not supported by Islamic law. Banks collects its deposit from its
customer by opening an account. It is the prime relationship between a customer and a bank. There
are lots of deposits that are being offered by AIBL but all deposit skim are not equally popular and
some deposit skims are currently unavailable because of the betterment of the bank. Some currently
available and most popular skims are:

1. Al Wadiah Current Deposit (CD)

2. Mudaraba Short Notice Deposit (SND)
3. Mudaraba Savings Deposit (MSD)
4. Mudaraba Term Deposit (MTDR)
5. Al-Arafah Monthly Hajj Deposit (MHD)
6. Monthly Installment Based Term Deposit (ITD)
These deposits are divided into two categories:
1. Demand Deposits
2. Time Deposits

1) Demand Deposits: The amount in accounts that are payable on demand of the client so it is
called demand deposit account. This also can be classified by two types by the characteristics of
the account holder’s transaction.

I. Al Wadiah Current Deposit (CD): Al-Wadiah Current Account is an Al-Wadiah

Agreement between Depositor & Al-Arafah Islami Bank Ltd. as per Islamic Shariah.The
fund deposited in this account by the client will be secured by the Bank and the Bank will be
bound to refund this amount fully/partially on demand of the client.The bank can investthe
deposited amount with other deposits as per Al-Wadiah principles of Islamic Shariah. The

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 weightage of the account will be zero and the client will not bear any profit or loss. To open
Al-Wadiah current account, minimum Tk. 2500/- is to be deposited primarily, which is
treated as minimum balance of the account. Clint will receive 3.00% of profit every year
depending on their deposit.
II. Mudaraba Savings Deposit (MSD): Mudaraba Savings Deposit Account shall be opened
with a minimum of Tk.1, 000/ which is also the minimum balance required to be maintained
by the Account holder for sharing profit on his deposit. The profit percentage is 3.00% and
will be given end of each year. Students also can open MSD account. Students who are
bellow 18 years of age can also open MSD account. In the student account can be open with
a minimum balance of TK. 100/- and the profit percentage is 3.00% which will be given at
the end of the year.
III. Short notice deposit: This deposit product is guided by the Mudaraba principles of Islamic
sharia. AIBL is providing 3.00% of profit at maturity.

2.) Time Deposits: Deposits that are payable at a fixed date after a limited period of time are
time Deposits. AIBL has quite a few time deposits. These are being categorized below;
A. Monthly Installment Based Term Deposit (ITD)
B. Mudaraba Term Deposit (MTDR)
C. Al-Arafah Monthly Hajj Deposit (MHD)
A) Monthly Installment Based Term Deposit (ITD): Deposit can be made by convenient
monthly installment depending on once income. One can open an ITD account for 2,3, 5, 8, 10
or 12 years along with installment amount of TK.200/- up to TK.50000/- and the profit will be
given at a rate of 6.00% every year till the end of maturity.
B) Mudaraba Term Deposit (MTDR): It can also be called FDR. Mudaraba Term Deposit
Receipt (MTDR) is a profit bearing account which offers returns by depositing money for fixed
period of time based on Mudaraba concept. These deposits are repayable subject to a period of
notice and hence known as time deposits or time liabilities meaning thereby that these are
withdraw able subject to a period of notice and not on demand.

 Profit percentage of MTDR:

Time Profit percentage
1 month 3.00%
3 month 6.00%
6 month 6.25%
1 year 6.25%

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C) Al-Arafah Monthly Hajj Deposit (MHD): Al-ArafahIslami Bank Limited has introduced a
Monthly installment based Hajj Deposit for the middle class pious Muslims. In this scheme,
your sacred wish for pilgrimage will be fulfilled with relatively smaller monthly deposits. One
can open only one Hajj account in his/her name which will be operated by the rules of
Mudaraba. One can prepare for the Hajj within one to twenty years. Profit will be given at a rate
of 6.00% every year.

2.1) Work-Related /Organization wide:

I have done 3 months internship program at AIBL, Pallabi Branch under the direct supervision of
Mrs. Abida Sultana. In the time of my internship I have learnt lots of new works and gained
different kinds of workplace experiences. Internship activities and experiences are briefly describing
below,
Internship Placement & Responsibilities:
The report is based on the activities that I have performed in the General Banking Department. The
report has been prepared on the experience that I have achieved through the internship program. In
my internship program I have learned the regular day to day activities of the account opening,
clearing, preparing debit voucher and how to give entry in inward and outward register book.
General Banking Department of AIBL consists of;

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 General Banking
Account
Cash Clearing
Accounts Remittance Opening
Section Section
section

Figure 02: General banking department

2.1.1. Account Opening: I have started my internship activities with the account opening section.
Here I have learned how many accounts that Al-ArafahIslami Bank has and the procedure of
filling the account opening form properly. My supervisor gave me a brief compact instruction
of how to fill up a form and make it complete with required documents and had showed me
by filling up one and attaching the required documents with an individual form.

I. Account opening procedures:

A) Current Account (CD): Current account is a kind of account that usually being open in the
name of organization or for individual. For opening a current account in the name of an
individual person you need two copies of passport size picture of account holder, one copy
passport size photo of nominee (in the back side of the photo both the A/C holder and
nominee should give there sign), NID photocopy of both the person and the signature of both
the account holder and nominee into the form. To open a current account in the name of a
company you need to give the registered seal of the company and then the proprietor will
give his or her signature on the seal. The authorized person who came to open the account in
the name of a company he or she needs to give the photocopy of trade license of the business,
TIN certificate of the person who want to operate the account on behalf of the company,
there NID photocopy, there two copy of passport size photo and one copy passport size photo
of the nominee. In case of partnership business partnership deeds is required. After justifying
all the documents the form will be fill in by asking the client about various information about
themselves required to fill in the form. Then in the CD opening file the date, the name at
which the account will be open have to written down carefully. Then bank will give the
customer an account number. After that the deposit slip will be written down asking the
client how much money they want to deposit for opening the account. For current account
one need to deposit at least 2500/- taka. After written down the deposit sleep customer’s have

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 to go to the cash counter to deposit the money. After depositing the money in the cash
counter there account will be open.
B) Saving Account (MSD): saving account can also be open in the name of a company or for
personal purpose. Requirements for opening a saving account:

1. 2 copy passport size photo of account holder and one copy passport size
photo of nominee.
2. Photocopy of NID or passport of both the account holder and nominee. In
case of nominee birth certificate can also be accepted instead of NID.
3. Photo copy of TIN certificate, driving license if there is any.
4. Introducer for an account (not mandatory because the branch id new)
Account opening process:
First step: Fill in the account opening form. Like: write down account
holder name, parent’s name, nationality, income source etc. same thing in
case of filling up nominee’s information.
Second step: verify the required documents. Like: photocopy of NID,
passport, TIN, attached photo etc.
Third step: Give an account number from the MSD opening file.
Fourth step: Fill in the deposit book.
Fifth step: Deposit the money to the cash counter.
Sixth step: Account is opened.
Elaborate description of the process:
 First of all the bank ask the customer if he or she wants to open the account for personal use
or in the name of a company.
 Then the bank asks in which name the account will open. Bank employee will write the name
into the form according to the NID of the individual. In the case of a company bank
employee will ask for tread license.
 Then the bank asks the client whether he or she want to operate the account individually or
some other person can also operate. If an account is opened by multiple people the bank will
write the name of every individual who are called the join holder of the account.
 Then the bank writes down the information about the introducer. As AIBL, Pallabi branch is
new introducer is not mandatory for every account.
 After writing down the introducer’s information bank will fill in the information about the
account holder or the account operator. For an example account holder name, parent’s name,
date of birth, NID number, permanent and present address office address, income source etc

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 and give necessary signature in the form and other required documents like FATCA and bank
charge agreement form. In case of nominee bank write down all the information like the
account holder but need not to sign in the FATCA and bank charge agreement.
 Then the bank verify all the document needed to open the account like NID photocopy of the
account holder and nominee, tread license validity in case the account is in the name of a
company and necessary photos required to open an account. (For opening a MSD account
holder need two copy passport size photo and one copy passport size photo of the nominee.)
 After that the bank employees attach all the individual and company documents with the
form along with FATCA and banking charge agreement form.
 Then the bank asks the customer how much money he or she wants to deposit as primary
amount. For saving account minimum balance one need to maintain is TK.1000/-.
 After writing the amount of primary deposit bank give the customer an account number
 Then the bank employees write the deposit slip and tell the client to go to the cash counter.
After depositing the money in the cash counter the account will be open.
 There is another kind of MSD account which is only for the student in this account instead of
NID photocopy one can give birth certificate of the student and two copy passport size photo
of the guardian and some information about the student’s school like the name of the school
or college and the signature of the students school teacher and also the signature of the
student’s guardian. The account will be open in the name of the student but the guardian will
operate the account. When the student will pass the 18 year mark then the student can operate
the account of his own. One can withdraw maximum TK.8000/- from the student account.
Other procedures of opening a student account are same as opening a normal MSD account.
In the account opening section I have to perform the task of fill in the forms, asking the
+client about various information needed to fill up the form, verify all the documents needed
to open the account, giving the account number from the register file and fill up the deposit
slip.
C) Monthly Installment Based Term Deposit (ITD): It is one kind of time deposit. You can
also call it DPS. To open an ITD account for any period (2 years to 12 years) at any amount
(200 to 50,000) one need to bring one copy of passport size photo of account holder and one
copy passport size photo of nominee, there NID photo copy and tin certificate.
 In case of mine if I am in charge of opening an ITD account the first question I always
ask the client about the name he or she want to put in the form as an account name. Then
I ask the person if he or she bring the document needed to open the account. After that I
ask the client for which time period and amount the person want to open the account.

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 After asking them those questions I wrote the exact name at which the account will open
by seeing his or her NID. After that I write the installment amount and the duration for
which the account will be open. As my branch is new it is not mandatory to have an
introducer for opening an account. Then I fill up the information about the account holder
for an example his or her name, parents name, his or her profession, income source, NID
number, permanent and present address etc. then I fill up nominees information. After
that I tell them to give required signature needed into the form. Then I need to give an
account number from the ITD register file. After that I write the deposit slip. In case of
opening an ITD account the customer must deposit the exact amount as a primary
balance as he or she prefer as his or her installment. After writing the deposit slip the
customer go to the cash counter and give the money to the cashier to open the account.
Customer keep the deposit book and the account number as an evidence for his or her
account.

D) Mudaraba Term Deposit (MTDR): You can call it FDR. In this account the account holder
keep a fixed amount of money for a certain period and earn some profit. For opening an FDR
you need to bring two passport size photos of account holder and nominee and there NID
photo copy. The form fill up procedure of FDR is as same as ITD but in FDR form one need
to tick mark the duration for which the account holder want to deposit the money and have to
write the taka amount in the form. After fill up the form I need to verify the photo copy
document like NID copy, TIN certificate and I have to attach them with the form. After that I
have to keep the required signature of the account holder and nominee in the form. Then I
need to give an account number from the MTDR file and need to write the credit voucher. At
first in credit voucher I write the date and branch name. In the credit voucher under the head
“credit” I have to write “MTDR”, the duration of MTDR and the A/C number. And then
under the head of particulars I have to write the purpose of writing the credit voucher.
Suppose Mr. X want to open an MTDR so under the head ‘particulars’ I have to write “Being
the amount credited of Mr. X for MTDR purpose and also the taka amount both in numbers
and words in amount column. Then under “contra” head I have to write cash and if someone
wants to deposit cheque I need to write cheque under contra head. After that the executive
officer and the branch manager give a signature on voucher. Then the voucher goes to the
cash department and the cashiers give the money received seal. The customer needs to give
two signatures behind the back of the voucher and have to write his or her phone number. In
this stage the customer need to deposit the money in cash counter. Then it comes back to GB
department and there the GB in charge write the MTDR blog and send the voucher back to

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the cash counter. If anyone wants to give cheque then the name of the bank by which the
cheque was issued and the cheque number needs to be written down under the head
“Particulars” in the credit voucher. After that the customer is provided with the MTDR blog.
In the MTDR blog the account number should be written in the right top corner. The
customers need to keep the MTDR blog as an evidence for opening an MTDR. This blog is
needed after the end of the duration to withdraw money.

I. Cheque book distribution to the customer: After opening a current or saving

account one can claim a cheque book after seven days. When a client came to the
bank to take the cheque book we first ask the client the account number and the name
at which the account is registered. Then we cheque the MICR list whether his or her
cheque has come to the branch from the head office. If we see the account number in
the MICR list we note down the account name, account number, cheque serial
number in the MICR register. Then we fill up the check requisition slip and take two
signature of account holder in cheque requisition slip and one signature in MICR
register. Then we give the cheque book to the account holder.

II. Information providing to customers: sometime some client came to the bank to
know about account opening procedure, deposit skim, profit percentage of various
account etc. I always help the client by providing these information.

III. Prepare the debit and credit voucher: I have already mentioned that the credit
voucher is being prepared when any customer came to open FDR account. I also
prepare the debit voucher when a customer came to withdraw remittance from the
bank. In the debit voucher first of all I have to write the date and branch name then
under the head “Cash Debit A/C” I have to write “preparing for remittance
adjustment.” Then under the head “Particulars” I have to write the money transfer
organization’s name such as Placid Express, Western Union. Then I have to write the
secret PIN number and the name of the money receiver. For an example Md. Nazmul
will receive remittance and the remittance came by Placid Express. So under
“Particulars” head I have to write “Being the amount received by Placid express
against the PIN ************* in favor of Md.Nazmul. Then I have to write the TK
amount both in numbers and words. Then the customer needs to give two signatures
in the back of the voucher. After that the branch manager and executive officer will
give his or her signature. Then the voucher with some other necessary documents will

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 go to accounts section and from there the customer will receive money. Preparing
debit voucher is done under the remittance section of GB department.

IV. Write down inward and outward letter register: when a document goes out from
our branch to the head office or anywhere else we register it into outward letter
register book. Suppose an ATM application went to head office from our branch. So
to write down this incident I have to first write the date at which the letter will go to
the head office. Second I have to give a dispatch number. Third I have to write the
address where the letter will be sent. Then I have to write the documents name or the
subject for which the document is going outside. At last I need to take a sign from the
footman. When a document came from outside into the branch office we write down
the incident into the inward letter register. To register the exchange properly first I
need to give the exact date at which the document enters into the branch. I must write
the proper address from which it was received. Then I have to write what kind of
document it is. Then I have to write the Regd. No or Courier No. and get the initial or
signature from the person who received the documents. I perform this kind of task
occasionally.
V. Embed different seal to different forms: we have to attach differentseal to different
forms. Like branch certified seal, signature verified seal, signature admitted sill after
fill up account opening forms.
VI. Making different kind of forms: In the free time when there was no rush for
customer. I had to make different kind of forms. Like embed branch logo seal in the
form, attach FATCA and bank charge agreement document to the form.
VII. Making phone calls to the customer: I have to make phone calls to the customer
when I see any lacings in the form. During the time of opening an account some
customer don’t give full documents needed to open an account. So I need to call the
customer to give them a reminder so that they give the bank proper documents.
VIII. Fill up the KYC (known your customer): during the time of opening an account I
have to fill up the full KYC form and have to highlight the risk percentage of the
customer.
2.2 Other relevant activities: As our branch is new most of the people in Pallabi area don’t know
about the branch. So I have to perform some marketing activity with my other intern friends who
are currently doing there internship in Pallabi branch. We have to go for marketing activity at list
3 days a week. In the marketing activity we have to go to different school, college and we have to
talk to the headmaster and the officials of different schools and college. Sometime we have to go

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to different markets and talk to the shopkeeper for letting them know that a new branch has
opened in Pallabi.
2.2.1. Remittance:
In remittance section sometime I need to fill up the remittance withdrawing forms given to
the customers. Because some customer don’t know how to fill the forms. In that forms I
need to write the proper information about the sender and receiver. Then I have to fill up the
debit voucher that I have mention above. All other activities in this section are computer
base and that was done by my supervisor.
2.2.2. Clearing section: In clearing section I will only talk about the cheque clearing.
Although I haven’t get the opportunity to work in clearing department because most of the
activity here is done by banking software and as an intern I don’t have access to it. But my
supervisor gave me some basic idea about how it is done. My supervisor told me about two
types of clearing system: 1) outward clearing system 2) inward clearing system.
1) Outward clearing system: when cheque issued by other bank came to our branch for
clearing it is called OCS.
2) Inward clearing system: when a cheque of our branch goes to other banks for clearing it
is called ICS.
There are two types of cheque. 1) High value 2) Normal value cheque.
1) High value cheque: TK amount5 lacks or above. Posting time 10.00 am to 11.30 am.
And the amount will be credited to the account within 3.00 pm.
2) Normal value cheque: TK amount bellow five lacks. Posting time 10.00 am to 12.00
am. The amount will be credited to the account within 6.00 pm.
There are three essential elements are required for clearing the cheque:
1) Crossing seal
2) Clearing seal
3) Payee’s account credited seal.

Crossing seal is given in the right corner of the cheque. It is given in the front side of a cheque
and the other two seal is given to the back side of the cheque. In the back side of a cheque the
CHQ holder must give two signature and the phone number.

2.2.3. Investment department: I don’t get the opportunity to work in the investment
department but my supervisor gives me some basic idea about how one can get money from the
bank for investment purpose. A client can get money for investment in many conditions but I
have known only three conditions or ways by which a client can get money for his or her

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investment.

1) Investment against ITD and MTDR amount: A clientcan get moneyfor investment against
the principal amount he or she has deposited in his or her ITD or MTDR account. A client can
invest 80% of his principal amount deposited in the account. He or she has to repay the amount
within one year, and the investment rate is 15%.

2) Investment in real estate business: if a client wants to invest in real estate business he or
she can get money from the bank. To get the money from the bank for investment one need to
have a current account in the bank. He or she needs to have his or her own land for giving
mortgage against the investment. The client should have a running real estate business. Bank
will sent credit information bureau report to Bangladesh Bank in the name of the client. If the
CIB report is good then the bank will start working on investment proposal. After that the bank
will do a calculation on the value of the land that the client will keep as a mortgage for getting
the investment. How much amount a client will get for his or her investment will depend on the
current value of the land. After the valuation of the land the head office will finally decide how
much money a client will get for his or her investment. The investment rate is 11 to 15 percent.

3) Investment on house building: AIBL also invest in house building sector. For getting this
loan one needs to have a one stored cemented building. Then the bank will give money for
constructing second and third floor. The client will have to keep his or her land as mortgage
towards the bank. On the basis of mortgage value of the land the bank will decide how much
money a client will get for his or her investment.

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3.1) Observed in the organization:
People choose private banks for better and faster service. All private banks main priority is to
provide lucrative package and faster service to the customer. AIBL is doing well in this
regard. According to an article of Daily Star AIBL is holding the 9 th spot in terms of
profitability in 2015. But I think there are still lots of scope for improvement. Especially in
Pallabi branch there are lots of areas where the bank need to improve. The areas are:
A) Shortage of office space: The office space of AIBL Pallabi branch is not that big. As it is a
new branch there is less pressure for customer in the pick hours. But when the branch will
grew old there will be a lots of customer bank need to serve at the same time. So I think the
office space need be bigger.
B) Lack of Manpower: there are eight employee and seven staff in the Pallabi branch. But I
think the branch need some more employees specially in clearing department. Also the
branch doesn’t have any management trainee officer. Branch like this need at least one MTO
officer for better service
C) Lack of quicker and sophisticated service: as there is a lack of manpower sometime in the
pick hour’s customers have to wait for a bit to get the service.

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 D) Unsatisfactory machinery performance: In AIBL pallabi branch employee often face
server problem. It often get slower. Sometime employees of the bank cannot log in with their
ID and password because their account gets locked because of the server problem.
E) Unavailable ATM booth: in Pallabi where the branch is situated there is no ATM booth of
AIBL of its own. So ATM boot need to be established very quickly to upgrade the service
quality.
3.2) Academic preparation:
In AIBL Pallabi branch I worked in general banking department. Where I had to perform
various task. Many of the tasks are very new for me and some are familiar because of the
lesions I have learned during my BBA program.
A) Communication skill: In banks you have to communicate with lots of customer. The
communication skills I have learned during my BBA program helped me a lot to
communicate with the customer properly.
B) Punctuality: During my internship period I had to perform various tasks in time. This lesion
I have learned during my BBA program when I have to submit any assignment or case
studies in time.
C) Better knowledge on MS Excel: MS excel is needed in performing various task in banks.
In my BBA program I used MS Excel in lots of presentation but in a smaller scale. Banking
Excel program need to be thought in detail to perform various tasks effectively in banks.
D) Knowledge about financial instrument: In Auditing course we have learned elaborately
about debit and credit voucher which help me a lot to prepare debit and credit voucher in
bank.

3.3) Missing knowledge that need to be learn in University:

After completing my 3 month internship I have pointed out some suggestion that the
University must take into consideration.
A) Practical knowledge about financial institution: study tour need to be organize frequently
so that students can get the practical knowledge about various operations performed regularly
in the financial institution.
B) In depth IT knowledge: In banks differentsoftware are used in performing various banking
tasks. Various IT related program need to be added in our syllabus so that we can perform
various technical task efficiently.
C) Lack of mathematical knowledge: More mathematical terms need to be thought to make
the student more efficient in banking task.

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 D) Combination of practical and bookish knowledge: Bookish knowledge need to combine
with practical knowledge to give the students a real view about the professional world.

During the timeof my internship period I have learned various skills that I haven’t learn before. The
skills are as follows:

A) Account opening procedures: I have learned different account opening procedure and what
are the requirements for opening an account. Like client’s photo, signature, photocopy of
NID or passport, nominee’s information, nominee’s signature, nominee’s photo, trade license
copy etc.
B) Account related information: learned about various account’s profit percentage and
minimum amount of money needed to open an account.
C) Issuing cheque book to customer: when a customer came to bank to take his or her cheque
book. The first think I need to see is the MICR list given by the head office. If the account
number is there I need to fill up the MICR register. IN MICR register I need to write a serial
number, name of the account holder, account number, cheque serial number and in cheque
requisition slip I need to write the same. Then I need to get the sign of account holder both in
MICR register and cheque requisition slip. Then I need to give the cheque requisition slip to

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 the clearing department and give away the cheque book to the customer.
D) Procedure of writing debit and credit voucher: I have to write debit voucher when bank
acquire any expense and need to write credit voucher for opening a MTDR account.
E) Learned about how to write the inward and outward letter register: when any
documents come into our branch from head office or go outside the branch I need to write the
inward and outward letter register.
F) Communication skill: I havelearned practical communication skill because I need to
communicate with the customer while opening an account.
G) Corporate regulation: I have known about different way of giving attendance where every
intern has to sign in the intern attendance book and also learned various ethics like normally
banking hour started at 10.00 am but banks employee need to start their work at 9.30 am.
H) Punctuality: The most important think I have learned during my internship period is
punctuality. I need to complete my assigned task with in a specific time period. Which is I
think one of the challenging thing for me.

5.1. Recapitulation/ Summary:

The internship program of three months was a very useful opportunity for me. During those three
months at Al-ArafahIslami Bank, Pallabi branch I worked in general banking department and
gathered a lot of practical experience. I have learned how the bank employee works in a
structured way. Al-ArafahIslami Bank LTD is a private commercial bank with modern
technology and follows the rules of Islamic Shariah in there day to day operation. The bank has a
good amount of client and has some lucrative products which are very attractive to customers.
Currently the bank is focusing more on better customer service and more customer satisfaction.
There is no doubt that AIBL has many attractive products and various kinds of services but the
bank is giving equal importance to customer satisfaction which will give a fruitful result in future.
I have tried my best to summarize my corporate experience in this report. I hope this report will
be also be helpful for the AIBL management if they analyze the report carefully and consider the
recommendation and take necessary steps to solve the problems. I am very much confident that

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 the experiences I have gathered during my internship period will help me a lot in my future when
I will enter into my banking job.

5.2.Suggestions Addressing the Challenges:

I. The office space needs to be bigger. AIBL is a faster growing bank. Its number of
customer is growing day by day. To serve the maximum customer at a time properly and
to reduce the customer mass bank need to enhance the office space.
II. The process of giving remittance, distribution of cheque book need to be easier.
III. Service like receiving tuition fees, current bills etc need to be open in every branch.
IV. More advance server system need to be established to give faster service.
V. Banking process need to be more computerized to save clients time.
VI. Bank’s employee need to be more skilful so that they can perform their job more
efficiently.
VII. There should be more marketing and promotional activities to promote the bank.
VIII. Bank employees need to communicate with the customers more formally and properly.
IX. More ATM booth need to be established to enhance the customer service.
X. Internet banking system need to launch properly to make the customer’s life easier.

REFERENCES

AL-ARAFAHISLAMIBANKCOM.(2016). Al-Arafahbankcom. Retrieved 23November, 2016,

from http://www.al-arafahbank.com/index.php

In-text citation: (al-arafahbankcom, 2016)

AL-ARAFAHISLAMIBANKCOM.(2016). Al-Arafahbankcom. Retrieved 23November, 2016,

from http://www.al-arafahbank.com/profile.php

In-text citation: (al-arafahbankcom, 2016)

THEDAILYSTARNET.(2016). Information about Al-ArafahIslami Bank Retrieved 23

November, 2016, from http://www.thedailystar.net/business/banks-saw-slim-profits-2015-196246

In-text citation: (thedailystarnet, 2016)

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AL-ARAFAHISLAMIBANKCOM.(2016). Al-Arafahbankcom. Retrieved 23November, 2016,
from http://www.al-arafahbank.com/cmsl.php

Annual Reports:

AL-ARAFAHISLAMIBANKCOM.(2016). Al-Arafahbankcom. Retrieved 23November, 2016,

from www.al-arafahbank.com/AIBL-Annual-Report-15-Big.pdf

In-text citation: (al-arafahbankcom, 2016)

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