Chapter-01

Introduction
1.1Origin of the report:
This report is a requirement of our course teacher which is important part of our BBA degree
requirement. As the supervisor has advice me to develop a thorough understanding of the
recruitment and selection process of Al-Arafah Islami Bank Limited (AIBL), this report is
prepared on those aspect of the HR practices of AIBL.

1.2 Objectives of the study:

• To explore the overall recruitment and selection process of AIBL.
• To evaluate the current recruitment and selection policy of AIBL.
• To find out the criteria of recruitment and selection process.

1.3 Methodology of the study:

In the preparation of this report, data has been collected from both primary and secondary
sources. The recruitment and selection policy of Al-Arafah Islami Bank Limited has been
consulted in preparing this report. Moreover, the internet, the annual report of AIBL etc. have
been used to collect information.

1.4 Scope of the study:

Banking system holds a significant position in a nation’s economy. It plays a crucial role in the
economic advancement of a country and shapes the central part of fiscal market in a highly
developed country. AIBL is doing a formidable job. So far researches have a very specific scope
to overview the whole system.
The report covers the background, function and mostly the Recruitment and Selection process of
AIBL. The preparation of this report offers a great opportunity to have an in- depth knowledge of
recruitment and selection process of this bank. It is a huge opportunity for me; with this report I
can learn and know many things about recruitment and selection policy of AIBL.

1.5 Limitation of the study:

To provide recent information and to make this report read worthy, support from various sources
is very essential. In spite of having my wholehearted effort, I could not collect some information
required at the time of study. Therefore, this is not free from limitation.

There are some limitations of this study. They are:

• Inadequacy and lack of accessibility of some preceding and latest data.

1
• Alike all other banking institutions, AIBL is also conventional and strict in providing
some information.
• Short of time.
• Lack of communication facilities
• Understanding problem.
• There are some technical problem like data interpretation, transmission and data
reservation.

2
 Chapter -02
Company Overview
2.1HISTORY:
 Al Arafah Islami Bank Ltd is the first Bangladesh – commercial bank incorporated on June 18,
1995 under the Companies Act 1994. With the permission of Bangladesh Bank, it commenced its
commercial banking operation on June 03, 1996. The head office of Al Arafah Islami Bank Ltd.
is at 36 Dilkusha commercial area Motijheel Dhaka-1000.The inaugural ceremony took place on
27th September,1995.

Its authorized capital is 15,000.00 million and paid up capital is 9,943.06 million.

There are total 119 branches of Al-Arafah Islami Bank Limited situated in 38 districts in
Bangladesh.

Now AIBL is the best rated bank in the Bangladesh. It is in the 6 th position in CAMELS rating.
Its aim is boosting modern management, advanced technology, good profitability and steady
growth transparency.

2.2 COMPANY PROFILE:

Registered Name Al-Arafah Islami Bank Limited

Legal Status Public Limited Company

Logo

Established 1995

Type Private Bank

3
Category Commercial Bank

Origin Local Bank

Code 015

Stock Code ALARABANK - DSE CSE

Services  Deposit

 Investment

 Foreign Trade

 Micro, Small & Medium Enterprises (MSME) Banking

 MoneyGram

More Resources:

Corporate Address 36 Dilkusha Commercial Area, 6th - 9th Floor, Dhaka 1000, Bangladesh.

Telephone +880 2 7123255-7, 9568007, 9569353

Fax +880 2 9569351

E-mail Address info@al-arafahbank.com

Website www.al-arafahbank.com

SWIFT Code ALARBDDH

Service Hours Sunday: 10:00 am - 4:00 pm

Monday: 10:00 am - 4:00 pm
Tuesday: 10:00 am - 4:00 pm
Wednesday: 10:00 am - 4:00 pm
Thursday: 10:00 am - 4:00 pm

4
 Friday: Closed
Saturday: Closed

2.3 VISION:

 To be a pioneer in Islamic Banking in Bangladesh and contribute significantly to the

growth of the national economy.

2.4 MISSION:

Achieving the satisfaction of Almighty Allah both here & hereafter.

Quality financial services adopting the latest technology.
Fast and efficient customer service.
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.

2.5 COMMITMENTS:

♣ Ours is a customer focused modern Islamic Banking making sound and steady

growth in both mobilizing deposit and making quality Investment to keep us

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

5
needs of the clients.

2.6Special Feature of AIBL:

 All activities of the bank are conducted according to Islamic Shariah where profit is the legal
alternatives to interest.
 Its investment policy is approved by Islamic Shariah based on the Quran and Sunnah.
 The bank is committed towards establishing welfare-oriented banking system, economic
upliftment of the low-income group of people, create employment opportunities.
 According to the need and demand of the society and the country as a whole the bank
invest money in different ‘Halal’ businesses.

2.7 Objective of AIBL:

 Islamic banks operate on Islamic principles of profit and loss sharing, strictly avoiding
interest, which is the root of all exploitation and is responsible for largescale inflation and
unemployment.
 The objectives of Islamic banking are not only to earn profit, but to do good and welfare
to the people. Islam upholds the concept that money, income and property belong to
Allah and this wealth is to be used for the good of the society.
 An Islamic bank is committed to do away with disparity and establish justice in the
economy, trade, commerce and industry; build socio-economic infrastructure and create
employment opportunities.

2.8 Schemes of AIBL:

1. Current Account

2. Mudaraba Saving Account

3. Mudaraba Term Deposit Receipt Account.

4. Short Term Deposit

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5. Installment Term Deposit.

♣ Mudaraba Kotipoti Scheme

♣ Mudaraba Millionaire Scheme

♣ Mudaraba Lakopoti Scheme

6. Double Deposit Scheme.

7. Hajj Deposit Scheme

8. Small Investment Scheme.

2.8 Management:

The company is managed by its Board of Directors consisting of 15 members. The Board
appoints an executive committee consisting of Sponsor Director (Chairman, Vice Chairman), Its
member, Shareholder Director, Ex officer Director, Company Sectary. The committee is
authorized to observe and review major day to day operational functions including investment
plans, budgets and other investment activities.

I.

2.9 SWOT Analysis of AIBL:

I. Strength:
 Strong Corporate Management
 Maintain strong network through the country.
 Efficient Performance
II. Weakness:
 Conflict in about power of authority among directors.
 Risk Management System is not strong.
 IT division is not enough strong.
III. Opportunities:
 Shariah based Islami Banking.

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  Favorable business climate.
 Rapid growth of business function and changing the current market.
IV. Threats:
 The market is very competitive.
 Political environment of the country.

2.10 Microfinance:

Al-Arafah Islami Bank Limited has initiated a project entitled “Krishi O Grameen Khudra
Biniog Prokolpa (Microfinance). With this project, Al-Arafah Islami Bank Limited is working
for reduction of poverty, development in agricultural sectors, creation of job opportunities etc.

2.11 Partner:

Al-Arafah Islami Bank Limited has been signed a partnership with Millennium Information
Solution Limited.

2.12 Hierarchy of AIBL:

In AIBL there is a system of hierarchy like top management to lower level officers i.e. officers or
positions are organized in hierarchy each lower one is being controlled and supervised by the
higher one. In every division and department every official has an office order in order to
perform his duties and which is duly supervised by his superior. The hierarchy may be
mentioned as, board of directors, Managing Director, Divisional Head etc.

2.13Organizational Structure:

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2.14 Departments of Al-Arafah Islami Bank Limited:

9
The Department Based Approach is similar to that of the branch-based approach, where each

department operates as a separate unit but sometimes collaborates in order operate more

efficiently or to solve a common problem. Such departments are also treated as a separate

entity but are much more specialized in one particular area of business unlike a branch, which

has to be involved in multiple tasks. Examples of few other departments at Al-Arafah Islami

Bank Ltd are given below:

1. Human Resources Division (HRD)

2. Financial and Administration Division (FAD)

3. General banking department

• Accounts opening section

• Cash section

• Remittance section

• Bills and clearing section

• Accounts section

4. Foreign exchange department

• Import section

• Export section

• Foreign remittance section

5. Marketing Division

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6. Public Relation Department (PRD)

7. Merchant Banking and Investment Banking

8. Treasury Division

9. International Division (ID)

10. Computer and Information Technology Department (IT)

11. Corporate Affairs Division

12. Card Division

13. Board Audit Cell

14. Monitoring and Inspection Division

2.15 Core Values of AIBL:

For customers:

Become the most caring Bank by providing the most courteous and efficient services to the

customer.

For employees:

Providing many financial benefits to the employees and making an employee friendly

environment.

For shareholders: Ensuring fair return to the stockholder on their investment.

Chapter-03

11
 Analysis and Evaluation

Recruitment and Selection of AIBL

3.Recruitment Process:

The main objectives of Al-Arafah Islami Bank Limited are to attract and retain highly
qualified people who will perform best in their particular positions. The bank not only tries to
attract well-qualified candidates but also tries to identify and recruit people who are really
interested to work in the bank for a certain period of time.

The recruitment philosophy of AIBL as follows:

• AIBL usually follows internal recruitment but when the need arises they go for

external recruitment to fill up the vacancies.

• AIBL always likes to hire people for long period of time, bank give more emphasis

on them who wants to get promoted to mid-level positions.

The corporate culture of AIBL is to treat employees with extraordinary employee not general

employee. Together they form a family and they have a close bond which motivates them to

work as a team.

3.1Types of Recruitment:

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 AIBL practices two types of recruitment

• Yearly recruitment: this is done each year, according to the HR plan

• Need-based recruitments: this is done when there is a sudden vacancy.

3.2 Recruitment Sources and Methods:

AIBL usually promotes from within the organization. But it also recruits from external

sources. The external sources are:

• Different universities

• Competitors and other organizations

• Unsolicited applicants

Recruitment form campus generally handled by the HR division and the planning for this has
done based on the annual manpower plan. At first the respective department makes a shortlist of
candidate. Al-Arafah Islami Bank recruits from campus for entry level positions. The plan for
campus recruitment will have to tie up with the placement season of various universities that are
targeted for recruitment. The HR Division needs to identify a set of campuses based on the
courses conducted there, any past experience of candidates from these campuses and the
emerging requirements of the bank. The HR Division will need to take a decision regarding the
source of external recruiting considering variables like –

• Available Spread of candidates

• Cost Impact

• Time needed

And the external recruitment methods include:

• Advertising in newspaper and company website

13
• Employee referral

• Internship

3.2.1 Selection Process:

• Different types of selection process are described in below.

• Receipt of Application: This is the first selection step to join AIBL. Candidates either send their
CVs in application for a specific vacancy, or they send unsolicited CVs for any suitable position.
There is a box in front of the HR division where interested person drop their unsolicited CV. The
HR division collects job applications against each job vacancy. In case of newspaper
advertisements, the applicants are given at least 3 weeks to apply. After a specific period, each
and every job is closed for applying.

Sorting out Applications:

The next step is the short listing of CVs. Usually the HR division is occupied in the short listing.
But the HR division may hand over this step to the respective divisions to save time. To recruit
experienced bankers, CVs may be sorted out from the collection of unsolicited CVs received. Or,
another possibility is to find out experienced and competent bankers in other banks. Once
potential candidates are thus found out, they are contacted and called for an interview.

Informing Candidates:

After short listing of the CV and choosing the suitable candidates, HR division inform the
candidate over phone about written test (Entry level) or interview (Mid-level). For written tests,
the bank issues admit cards through courier services seven to ten days prior to the exam.

Written Test:

14
The employment test is generally aptitude test which measures candidates‟ verbal ability,
numerical ability, reasoning ability. Generally, AIBL take written test for entry level position
like Trainee assistant and for MT level. Sometime BIBM/IBA takes the written test on behalf of
AIBL.

Interview:

AIBL has an interview panel consisting of HR professionals and top-level management to

conduct biasfree and smooth interview session. For selecting MT‟s basically MD, DMD and
Head of HR conduct interview session. For recruiting experienced professionals several
interviews may be conducted.

Final Approval by Competent Authority:

After the interview session the candidate are evaluated by the interview panel. The management
team decides which one will be selected. After that an „offer letter‟ is made for the candidate.
Once the candidates accept the „offer letter‟, they are given the „Appointment letter‟. Rejected
candidates are not informed.

Physical Examination:

Like other bank AIBL also take physical examination of the selected employees whether the
applicant is fit for the job or not.

Joining and Placement:

Once the candidate passed physical examination are given the joining and placement letter. The
newly recruited employees are asked to report their respective joining place within one week.

3.2.2 Mode of Selection Process in Al-Arafah Islami Bank Limited:

15
1. Sorting out Applications

2. Receipt of Application

3. Informing Candidates

4. Written Test

5. Interview

6. Final Approval by Competent Authority

7. Physical Examination

8. Joining and Placement

3.2.3 Characteristics to look for in different stages of recruitment:

In different steps of recruitment, the following characteristics should be looked for:

Techniques used to gather data Characteristics to look for

Preliminary Screening Age, Academic Qualification and
performance record
Critical Analysis Test Meets minimum standards of mental alertness
In-depth Interview Necessary innate ability, ambition, loyalty
and interaction skills
Verifying biographical data from references No unfavorable negative reports on past
performance
Personal Judgement Overall competence and ability to fit into the
job position and the organization

3.3 Recruitment and Selection Policy of Al-Arafah Islami Bank Limited:

16
Recruitment and selection policy are key thing of recruitment appropriate employees.
Progressive companies pay special attention to recruitment, selection, training, orientation,
evaluation, promotion and compensation of Executives, Officers.

Recruitment Procedure:

Bank is service oriented organization. The success of a commercial Bank largely depends on the
quality of services offering to the customers. Quality service are mostly depending on the
officers and executives. AIBL believes in paying competitive salary and different facilities to the
employees to get maximum service out of them. Therefore, the authority of the Bank has to be
careful in recruiting the right person for the right job.

Recruitment Category:

Recruitment in AIBL required post has to be approved by the board members at the beginning of
each year either through inviting application from prospective candidate of through talent
hunting.

As far recruitment policy, AIBL recruit people through “Banking Cadre Service Model”. This
model is divided into three parts. These are-

3.3.1Core Banking Service Cadre (CBSC):

This program starts from recruiting people at MT (Management Trainee) to mid-level

management posts. Bank seeks fresh and talented people for these posts. Core banking
service means core banking works, like in the departments and Head offices. These people
are directly commanded by the head of department or managing directors. There are some
criteria for recruiting people at these posts. These are like-

• Management Trainee (MT) is the high potential fresh graduates/post graduates to be

recruited in the bank management cadre service within policy.

• MT is the future leaders to move up to different leadership positions with gaining of

experience & competence.
17
• People containing high potential and take pressure of managerial position are mostly
recruited as MT in Al-Arafah Islami Bank Ltd.

• Al-Arafah Islami Bank used to take MT from listed universities in Bangladesh like Dhaka
University, North South University. • Employees in Core Banking Cadre with professional
competences and background may move to Banking Support Cadre service.

3.3.2 Banking Support Cadre Service (BSCS)

BSCS is basically those departments which are formed to help banking operations. Al-Arafah
Islami Bank Limited has some departments which are helping the whole core and operations
services of the bank. The departments are- LSSD, IT, Legal etc. Under this model AIBL
recruit executive officials. In some cases, AIBL recruit Probationary officers for entry level
posts.

There are two segments of jobs in BSSC. They are-

• Operation Jobs: Starting from TA to EO level where employees will be limited in terms of
potential.

• Executive Jobs: Starting normally with potential „ Junior Officer‟ with requisite job
requirement & competence fresh from the recognized & listed Universities. MT at times will
be recruited sourced through the recruitment process in the „Core Banking Services Cadre‟
within policy.

• External Recruitment for Executive jobs: For executive posts Bank also recruit from the
market, candidates having required professional experience, competence & background as
well as through internal transfer of professionals from the „Core banking Cadre Service‟
depending on the availability of resources.

• Inter-transfer both in executive and operation jobs would be considered.

Normally no transfer from BSSC to CBCS would be considered. However, executives having
core banking professional competence may be transferred to CBCS in the event positions are

18
 available in job grade ladder and the bank management considers it fit and appropriate to do
so in the interest of business.

• Recruitment should be made in the following three Categories:

• 1) Trainee Assistant

• 2) Management Trainee

• 3) Experienced Officer

3.3.3 Trainee Assistant Recruitment:

Trainee Assistants (TA) is the entry level position in AIBL. Generally, Bank does not seek
very talented people for this position. People having ordinary result and talent are mostly
recruited.

A) Press Advertisement:

Advertisement under the captioned “Career Opportunity” should be published in at least 2

national dailies or internet.

B) Direct Recruitment:

Every candidate who applies in response to the press advertisement shall have to appear at a
written test & appear before the Selection Committee for an interview. Candidates who are
selected by head hunting will have to appear before the Selection committee for evaluation.
Candidates must not be over 30 years of age and should have minimum 8 points based on
educational qualification & no 3rd class/division in any examination. The candidate should also
have minimum Computer knowledge on the following:

• Operational system: Windows

• Word Processing: MS Word

19
• Spread Sheet: Excel

Typing speed: 40 words per minute (For Type/Telex/Computer - MS Word) & 25 for

other categories of Computer operation.

3.3.4 Written Test and Interview Model for TA:

Content for the written test (100 marks) should be as follows:

• Ability to write both in Bengali & English

• General arithmetic

• General knowledge

• Test organized by bank management or outsourced (IBA/BIBM/Others)

• 60% marks will qualify a candidate to appear before interview/viva.

In the face-to-face interview, the following are taken into consideration:

• Verbal communication

• Appearance

• Spoken English (moderate)

• Attitude

• Etiquette & mannerism

• Family background & need

• Reference personnel

• Willingness to stay longer in routine operation job /cash

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3.3.5 Interview committee and Rating Sheet:

 An interview committee not less than 4 members consisting of executives’ SVP & above
will conduct the face to face interview / Viva for final selection of TA. Interview
evaluation sheet in respect of each candidate will be in place considering all the factors
above and will be put on record.

3.3.6 Probationary Period and Confirmation of Services as TA:

Newly recruited TA has to complete a probation period for 1 (one) Year. After completing the
probation period successfully, he/she may be recruited to Junior Officer.

 TA has to get G+ rating at final assessment or his job will be terminated.

3.3.7 Management Trainee Recruitment:

Management Trainee is a higher-level post for any organization. Management Trainees are
directly related to decision banking posts. Management Trainee shall be recruited either through:

1) Recruitment through Press/Online Advertisement: MT must go through a written test.

The subject matter of are general knowledge, Arithmetic, English, Economics/ Banking
as may be decided by the Management from time to time. For this purpose, Prime Bank
Limited sometime take the help of outside experts for setting the questions, supervising
the examination work and marking the scripts. A candidate must secure minimum 60 %
mark in written Test to be eligible for VIVA/interview as Management Trainee.

2) 2) Direct Recruitment: Beside general process of recruitment, AIBL also go through

direct recruitment. But these are extreme special.

i. They used to be recruited based on performance in interview with the Selection

Committee.

21
 ii. Directly from amongst the interns (business graduates/post graduates) at Al-
Arafah Islami Bank studying in our listed Universities. But currently they have
stopped recruiting among the interns.

Educational/Other Qualifications for both direct and indirect MT

recruitment:

• The candidates for the post of Management Trainee must not be over 30 years of age on the
date of application.

• In addition to CGPA as mentioned above, the candidates must have at least two first divisions
in their academic feat in public examination No 3rd Class/Division/CGPA less than the standard
as shown in the above chart

• Have minimum computer knowledge of the following: -

Operational system: Windows

Word Processing: MS Word

Spread Sheet: Excel

3.3.8 MT Category, Requisite Qualifications and Placement Status:

There will be two categories of MT recruitment and placement profile:

a) Graduate MT cadre and

b) Post Graduate MT cadre

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3.3.9 Period of Probation:

The probation period for MT is 1 year and on successful completion of probationary period they
will be confirmed in service according to category as shown above-

3.3.10 MT Exposure on the Job and Performance Evaluation:

Newly recruited MT basically receive 2 – days long orientation program at Training and
Development Center after joining which covers briefing on company overview, background,
service rule as well as functions of different divisions/department/branches. Upon placement,
MT used to go through 12 months traineeship period in the following portfolios in the
manner as follows besides training and monthly counseling in group:

 General Banking Management

 Credit Management

 Foreign Exchange Management

3.3.11 Confirmation in Service:

Performance appraisal and interview by the management committee is being conducted at least a
month before completion of 12 month and only VG and E rated trainees will be confirmed in
substantive positions approved by MD within policy framework.

3.3.12 Recruitment process of Management Trainee:

 Receipt of application in prescribed form of the Bank

 Sorting out of applications

 Preparation of preliminary selected list

 Holding written test where applicable

23
  Conducting interview & behavioral test

 Final approval by competent authority

 Physical examination (Medical test/report)

 Appointment & Placement

3.3.13 Recruitment of Experienced/Executive Officials:

• Al-Arafah Islami Bank used to focus attention to develop its own manpower through training
process. Sometime its costs high because there is a lot difference between armature and
professional. In many cases newly recruited/trained employee quit the job. This brings huge
financial loss for the organization. To overcome this situation AIBL recruit experienced officials
from other banks. As per requirement of the bank, executive officials may be appointed from
time to time. In most of the cases AIBL does not take written test for this kind of positions. The
selected applicants are directly gone through interview session with management committee. For
experienced officials basically, job experience and special training are given more emphasis
rather than his educational qualification. The cases of selected candidates will be placed before
the competent authority for approval. Executive official does not get any probation period; they
can directly start their work at their respective places.

3.3.14 Recruitment Criteria:

• Al-Arafah Islami bank prepare “Job Profile” against each job available in the job grade ladder
covering three service cadres in functional areas and all recruitments used to be made according
to the respective job profile.

• The basis to be followed for calculation of points in respect of educational qualification is

given below:

Examination First Division

(CGPA Out of 4)

24
 HONS/BBA 3
MASTERS/MBA 3

Chapter – 04

Findings, Recommendation and Conclusion

4.1 Major Findings:

Major findings of the study are as follows:

 AIBL usually promotes from within the organization. But it also recruits from external
sources.

 It usually follows internal recruitment but when the need arises they go for external
recruitment to fill up the vacancies

 The management of AIBL cares for the quality of service as well as the quality of its
human resources.

 Internal growth creates an attachment between the employees and the organization.
Moreover, internal growth has increased the recruitment and selection efficiency of the
HR Division because of their knowledge and skills about recruitment and selection.

 It has a strong online application system. The applicants may send their resumes through
online.

25
  The authority of AIBL uses internal sources of recruitment for attracting officials of the
organization. They usually ignore the external sources of recruitment for the above-
mentioned positions.

 It does not always check references properly, which may lead to a grave problem for the
organization.

 Shortage of effective advertisement is another major limitation. The recruitment

advertisement of AIBL lacks certain information.

4.2 Recommendations:

Based on the findings, a few recommendations are given below:

 AIBL may introduce e-recruitment system in the organization.

 It may enrich its external source to hire efficient candidates through circulating
advertisement in the newspapers and online.

 It should check references properly, which may identify the candidates clearly and may
not lead to a grave problem for the organization.

4.3 Conclusion:

The success of a commercial bank depends largely in the quality of service rendered to the
clients. Quality of service depends on the competence and the quality of the employees of the
organization. Therefore, the authority of AIBL has to be careful in recruiting the right person for
each job. As has been seen, the recruitment and selection process of AIBL has rooms for
improvement. The policy and process should be revised. So although the process they have been
adopting so far has been somewhat effective, to adapt to the changing times, the process should
be revised and streamlined.

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 Bibliography

 Annual Report of AIBL https://islamicmarkets.com/publications/al-arafah-islami-

bank-annual-report-2017

 Al-Arafah Islami Bank web site, www.al-arafahbank.com

 Basic Information https://en.wikipedia.org/wiki/Al-Arafah_Islami_Bank_Limited

 https://www.termpaperwarehouse.com/essay-on/Recruitment-And-Selection-Process-
Of-Al-Arafah/70843

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