Institute of Business & Finance

Department of Accounts & Finance

Lahore Campus

INTERNSHIP REPORT ON
DUABI ISLAMIC BANK PAKISTAN LTD

SUBMITTED BY
QASIM ZIA
NUML 2-15-008
BBA(HON)
Session: from 2015 to 2019
 Internship Report on
DUABI ISLAMIC BANK PAKISTAN LTD
National University of Modern Languages
Faculty of Management and Science

It is hereby certified that the report has been thoroughly and carefully read and
recommended to the Faculty of Management and Science for acceptance of final
internship report by:

Name: QASIM ZIA

Roll No: NUML -2 -15-008

Program: BBA(HONS)

Session: 2015-2019 Morning

This is in partial fulfillment of the requirement for the degree of National

University of Modern Languages, Lahore.

Date: ____________________

Supervisor's Name:

Supervisor's Signature:

Panel Member Name:

Panel Member Signature:

Head of the Department:

Letter of Transmittal
Head of Accounting & Finance Department,

National University of Modern Languages,

IBF Campus, Lahore.

Dear Sir/Madam;

It is to present you the Internship Report which is executed at, DUBAI

ISLAMIC BANK PAKISTAN LTD as required by the university as a degree
requirement for BBA(HONS) program.

This report has been prepared in accordance with the guidelines issued by the
department. It is the result of my first professional experience.

This is a partial application, of whatever, I studied as a business graduate of

National University of Modern Languages. In the report, I have covered the
introduction of DUBAI ISLAMIC BANK PAKISTAN LTD details of my work and
learning in corporate environment. I am assisting Managing Director for
assignments, but for learning assisting charge of each department.

I have put all my efforts to summarize my knowledge and experience in this

report, to make it comprehensive and readers’ expectations

Sincerely,

QASIM ZIA

ACKNOWLEDGEMENT
“All praises for Almighty Allah, who guides us in darkness and helps us in
difficulties and due respect for the Holy Prophet (Peace be upon him), Who
enables us to recognize our creator.”

I have no words to express my deepest sense of gratitude and thanks to Almighty

Allah, (The Compassionate and The Merciful), Who enabled me to complete this
report.

I render deep appreciation and gratitude to DUBAI ISLAMIC BANK PAKISTAN

Limited staff, Specially Mr. IRFAN and other staff for their valuable suggestions
and kind cooperation.

I am grateful to the National University of Multiple Languages and my respected

teachers who gave me an opportunity to enhance my capabilities. This was very
helpful for me because I have learnt a lot by applying theoretical knowledge in
practical field.

I am also grateful to all the employees of DUBAI ISLAMIC BANK PAKISTAN who
guided me. The behavior of all the department supervisors was very good and
they gave a lot of time to guide me. At the end, I would like to thank my parents
who always guided, supported & directed me to the right way that enabled me to
reach this stage.

TABLE OF CONTENTS
Supervisory Note
Letter of Transmittal

Acknowledgement

Executive Summary

OBJECTIVES OF STUDYING THE ORGANIZATION

CHAPTER 1

1.0 HISTORY OF DIBP 15

CHAPTER 2

2.0 INTRODUCTION DIBP 16

2.1 Vision OF DIBP 18

2.2 Mission OF DIBP 18

2.3 PROJECT OF DIPB 19

2.4 PRODUCT OF DIBP 20

2.4.1 Current Account 20

2.4.2 Savings Account 20

2.5 BOARD OF DIRECTOR 21

2.6 KEY PERSON 22

2.7 ORGANIZATIONAL CHART OF DIPB 23

2.8 HEAD OFFICE 24

2.9 SERVICES OF DIBP 25

2.9.1 Cash Management 25

2.9.2 Collections 25

2.9.3 Bulk & Data Processing 25

2.9.4 Payment Product 25

2.9.5 Depository Services / Liquidity / Funds 26

2.9.6 Foreign Exchange Remittances 26

2.9.7 Designated Bank Services 26

2.9.8 Cash-In-Transit Services 26

2.9.9 Trade Related 26

2.9.10 Import Murabaha 27

2.9.11 Wakala Istithmar Facility (Exports 27

2.9.12 Wakala Cum Istisna’a Facility (Local Supplies 27

CHAPTER 3

3.0 Organizational Structure 0f DIBP 29

3.1 IMAGE OF STRUCTURE 30

3.2 ORGANIZATION HIERARCHY OF DIB 31

CHAPTER 4

4.O Various Departmental details 32

4.1 CASH DEPARTMENT 32

4.1.1 Receipt 32

4.1.2 Payments 32

4.1.3 Types of Cheques 32

4.2 CLEARANCE DEPARTMENT 33

4.2.1 In-word clearing Books 33

4.2.2 Out-Word Clearing Books 34

4.3 ADVANCES DEPARTMENT 34

4.4 REMITTANCE DEPARTMENT 34

4.5 DEPOSITS DEPARTMENT 34

4.6 FOREIGN EXCHANGE DEPARTMENT 35

4.7 PRIVILEGE BANKING DEPARTMENT 35

4.7.1 Online Banking 35

4.7.2Utility Services 35

CHAPTER 5

5.0 HUMAN RESOURCES MANAGEMENT DEPARTMENT 36

5.1 COMPLIANCE DEPARTMENT 36
5.2 INFORMATION TECHNOLOGY DEPARTMENT 36
5.3 ISLAMIC BANKING 36
5.4 FINANCE & ACCOUNTS DEPARTMENT 37
5.4.3 Budget 37

5.4.4 Activity Checking 37

5.4.5 Storage of Records 37

5.5 Market Analysis 38

5.5.1Target Market 38
5.5.2Marketing Mix 38
5.6 BankaTakaful service (Insurance 40

5.6.1 Al-Islamic Cash cover 40

5.6.2 Al-Islamic Takaful 40

5.7 Account Opening at DIBPL 42

CHAPTER 6

6.0 Critical Analysis 43

6.1 Use of Electronic data in Decision-making 44

6.2 Technical Methods that Affect the Industry 44

6.2.1 Advanced technological products and services 44

6.2.2 Automation of operational tasks 45

6.2.2 Innovation  45

CHAPTER 7

7.0 SWOT Analysis 46

7.1 Strength 46

7.2 Weakness 47

7.3 Opportunities 48

7.4 Threats 49

CHAPTER 8

8.0 Financial Analysis 50

8.1Understanding Financial Analysis 50

8.2 How Financial Analysis is Used 50

8.2.1 Corporate Financial Analysis 50

8.2.2 Investment Financial Analysis 51

8.3 Types of Financial Analysis 52

8.3.1 Fundamental Analysis 52

8.3.2 Technical Analysis 52

8.4 BALANCE SHEET OF DIBP 53

8.5 PROFIT AND LOSS STATEMENT OF DIBP 54

8.6 INCOME STATEMENT OF DIBP 55

8.7 VERTICAL ANALYSIS 56

8.9 HORIZONTAL ANALYSIS 58

8.10 RATIO ANALYSIS 59

8.10.1LIQUIDITY RATIO 59

8.10.2 Current Ratio 59

8.10.3 Net Working Capital 60

8.10.4 DEBT RATIOS / SOLVENCY RATIONS 61

8.10.5 Debt to Asset / Debt Ratio 61

8.10.6 Debt to Equity Ratio 62

8.10.7 PROFITABILITY RATIOS 63

8.10.8 Return on Equity 64

8.10.9 Return on Total Assets 65

8.10.10 BANK SPECIAL RATIO 66

8.10.11 Advances to Deposit Ratio 67

8.10.12 Cash to Deposit Ratio 68

8.10.13 Equity to Assets 69

8.10.14 Equity to Deposits 70

8.10.15 Earning Per Share 71

8.10.16 Return on Total Investment 72

8.10.17 Return on Fixed Assets 73

8.11 PEST ANALYSIS 74

8.11.1 Political and Legal Environment 74

8.11.2Economical Environment 76

8.11.3Socio-cultural Environment 78

8.11.4Technology 79
8.12 FUTURE PROSPECTS OF DIBPL 80

8.13 WEAKNESSES OF DIBP 81

8.14 My Learning - during the internship 83
CHAPTER 9

9.0 Conclusion and Recommendations 84

9.1 Conclusion 84

9.2 Recommendations 85

CHAPTER 10

10.0 Bibliography 87

10.1Reference 88

CHAPTER 11

11.1 Annexure

Executive Summary
Main purpose of the internship is to have a practical experience. It provides a
student to get a practical experience and give inner view of the organization
selected. During this internship, a student comes to learn practical knowledge.

DIBPL has given me the opportunity to work with them as internee and gain
practical knowledge of Islamic bank working. In this report after analyzing the
history of Islamic banking and the current scenario on the base of swot analysis
which is done in great detail for assessing the different strengths, weaknesses,
threats and opportunities for the Islamic banking.

The Islamic banking is getting the priority of now every Pakistani and the people
are getting more towards it. On the bases of swot and people behavior conclusion
is carried out for which suggestions is also suggested.

The literature review shows the origination of Islamic banking and how it has
started in Pakistan. Analysis of HRD of the bank shows the policies and
procedures used by bank for motivation and compensation of its employees.
Personal experience is an extract of what I have learned during six weeks of
internship while working in different departments.

OBJECTIVES OF STUDYING THE ORGANIZATION

Overview
After the completion of degree BBA(HON) (Banking & Finance) I want to enter and
check the practical work according to my specialization. For that purpose, I
selected the banking sector because I have done specialization in banking and
finance.

Second and next main objective of studying organization; I want to enter in

practical field and want to learn which discipline is required for leading a
successful future life. I think I am very lucky person that I selected Dubai Islamic
Bank as my learning organization.

 Objectives that I want to achieve

Objectives that I want to achieve by studying the organization are as follows:

First of all, I want to check the practical work according to my degree

specialization. During my internship in Dubai Islamic Bank I have learnt how to use
the knowledge in practical field.
Secondly, I want to learn how to manage an organization and how to manage the
finance for a financial organization, as my degree is related to Financial
Management and Banking and Finance.
Customers dealing is another major objective that I want to achieve. During my
internship I learnt how to deal with customers.
Financial institution is a place where every type of businessmen visits so during
my internship in DIBPL I met with many businessmen and learnt how different
businesses run.
And another main objective that I want to achieve that how an organization
consist with different departments and how different functions are done in
different departments of an organization.

Through this internship I learned many things. It was a great experience for me to
comprehend the working environment. During this period, I face different types
of working conditions, which will help me to know that, how to handle these
conditions in future. Through this internship I am able to do work in all
departments of Bank because I know all rules, policies, and responsibilities, which
mentioned in DIBPL departments and products of these departments so I
achieved 80% of my objective.

OVERVIEW OF THE ORGANIZATION

Dubai Islamic Bank is the leading Islamic bank operating in Pakistan. Its balance
sheet size is improving with the passage of time. It has redefined its role and has
moved from a public sector organization into a modern Islamic bank. The Bank's
services are available to individuals, corporate entities. While it continues to act
as an investor of public funds and it has diversified its business portfolio and is
today a lead player in the debt equity market, corporate investment banking,
retail and consumer banking, treasury services and is showing growing interest in
promoting and developing the country's small and medium enterprises and at the
same time fulfilling its social responsibilities, as a corporate citizen.

In today's competitive business environment, DIBPL need to redefine its role and
shed the public sector bank image, for a modern Islamic bank. It is listed in
Securities and Exchange Commission of Pakistan in 2006.

Dubai Islamic Bank is today a progressive, efficient, and customer focused

institution. It has developed a wide range of consumer products, to enhance
business and cater to the different segments of society. Some schemes have been
specifically designed for the low to middle income segments of the population.

It has taken various measures to facilitate overseas Pakistanis to send their

remittances in a convenient and efficient manner. More recently it has started
Electronic Home Remittances Project. This project introduces technology-based
system to handle inward remittances efficiently, by ensuring that the Bank's
branches keep a track of the remittance received from abroad till its final receipt.

A number of initiatives have been taken, in terms of institutional restructuring,

changes in the field structure, in policies and procedures, internal control systems
with special emphasis on corporate governance, adoption of Capital Adequacy
Standards under Basel II framework, in the up gradation of the IT infrastructure
and developing the human resource. Dubai Islamic Bank has built an extensive
branch network with 36 branches in Pakistan.

CHAPTER # 1

1.0 HISTORY OF DIBP

 Thirty years ago, Dubai Islamic Bank created history by becoming
World's first Islamic Bank. Today Islamic Banking has become one of the fastest
growing economic sectors with over 300 financial institutions with assets
estimated at 300 billion US Dollar providing Islamic Financial Services.

Despite huge growth to the sector DIB is continued to be the pioneer and leader
to date. Since its inception DIB has evolved retail bank to a fully-fledged bank
catering to almost all the requirements of the customers in providing to Sharia
Compliant solutions locally and internationally. It has constantly upgraded its
services to individuals and companies who always remain a valuable asset.
By combining the best Islamic traditional values with high standards technology
and innovation, DIB is committed to comply with not only fully transactions of
financial dealings. DIB is also committed to provide customer-satisfaction oriented
job.

For its outstanding performance and contribution for Islamic financing, DIB
received the best Islamic Bank award in the Middle East Award 2006; by both
Euro money Islamic Finance Weekly and Gulf Wealth Forum. DIB has also
awarded the bank of the year 2006 Banker Awards.

DIBPL has started its operations since 2005. At that time the scale of business and
number of branches were very short. But just within the time period of five years,
DIB has an extensive network of branches, a wide range of Islamic Compliant
Products, well-managed communication system and good return from operations.

Page | 15

CHAPTER # 2
2.0 INTRODUCTION OF DIBP
 Established in 1975, Dubai Islamic Bank is
the largest Islamic bank in the UAE by assets and a public joint stock company
listed on the Dubai Financial Market. Spearheading the evolution of the global
Islamic finance industry, DIB is also the world’s first full-service Islamic bank and
the third largest Islamic bank in the world. The Bank currently operates 90
branches across the UAE, is present in seven markets worldwide and is expanding
its global footprint to further grow and develop the industry. Serving close to 1.7
million customers, DIB offers its growing consumer base an increasing range of
innovative Sharia compliant products and services.

In addition to being the first and largest Islamic bank in the UAE, DIB has a
significant international presence as a torchbearer in promoting Shariah-
compliant financial services across a number of markets worldwide. The bank has
established DIB Pakistan Limited, a wholly owned subsidiary which is the first
Islamic bank in Pakistan to offer Priority & Platinum Banking, as well as the most
extensive and innovative portfolio of Alternate Distribution Channels. The launch
of Panin Dubai Syariah Bank in Indonesia early in 2017 marks DIB’s first foray in
the Far East, the bank owns a nearly 40% stake in the Indonesian bank.
Additionally, in May 2017, Dubai Islamic Bank PJSC was given the license by the
Central Bank of Kenya (CBK) to operate its subsidiary, DIB Kenya Ltd.

The Bank’s ultimate goal is to make Islamic finance the norm, rather than an
alternative to conventional banking worldwide. DIB has won a range of accolades
that are testament to these efforts across diversified areas, including retail,
corporate and investment banking, as well as CSR and consultancy services. A
clear indication of the bank’s leadership position in the Islamic finance sector, DIB
named the Best Islamic Bank in the various prestigious ceremonies. In 2017, DIB
won the coveted Global Islamic Business Award in its first edition in the region

Page | 16
and was presented to the bank during the 23rd edition of the Business Excellence
Awards Ceremony. Reflective of its leadership in the global Islamic finance
industry, DIB has also been recognized with a number of accolades in 2018
including Banker Middle East Awards, Dubai Service Excellence Scheme,
International Finance Magazine and Islamic Finance News Awards.
Dar Al Sharia: Dar Al Sharia is a Sharia legal and financial consultancy firm
established in 2008.
Dubai Islamic Bank Pakistan: Dubai Islamic Bank Pakistan was established in 2006
as a fully owned subsidiary.
Panin Dubai Syariah Bank: 38.3% ownership in a Shariah compliant player in
Indonesia, which has one of the largest Muslim populations in the world.
Bank of Khartoum: DIB holds a stake in Bank of Khartoum, one of the largest
banks in Sudan.
Deyaar: Deyaar Development is a real estate development company established
in 2002.
Bosna Bank International: Bosna Bank International was established in 2000 as
the first Sharia-compliant bank in Europe.
DIB Bank Kenya Limited: License obtained from Central Bank of Kenya (CBK) in
May 2017 exclusively to offer Shariah compliant banking services in Kenya .

Page | 17

2.1 MISSION OF DIBP

Maintain and improve our position as the world’s
leading Islamic bank through unsurpassed customer service, innovation, growth
and consistent employee engagement.
2.2 VISION OF DIBP
To be the most progressive Islamic financial
institution in the world.

Page | 18

2.3 PROJECT OF DIBP

With its team of seasoned professionals, DIBPL has become the Investment Bank
of choice for local and regional clients in a short span of time. We leverage our
regional expertise and local knowledge to create an efficient blend of solutions for
our customers. Driven by Sharia principles, we provide a mix of following services:
● Project Finance
● Mergers & Acquisitions Advisory
● Privatization Advisory
● Real Estate Project Advisory
● Balance Sheet Restructuring
● Financial Advisory
● Arrangement of Debt through Sukuk Instruments
● Arrangement of Equity
● Sukuk Issuance (Public Offerings & Private Placements)
● Issuance of Equity (Public Offerings & Right Issues)

DIBPL’s Investment Banking provides its clients with a unique combination of

expertise, broad range of investment banking/financial services and access to top
regional decision makers. We derive strength from our team’s unrivalled
experience in dealing with the largest Advisory and Fundraising transactions in
the country. The Investment Banking team has been instrumental in arrangement
of financing for large ticket corporates in Pakistan.

Page | 19

2.4 PRODUCT OF DIBP

2.4.1 Current Account
A Halal Current Account that is designed to fulfill your banking needs with online
banking access at all branches across Pakistan.

● Available in local and foreign currencies

● Unlimited deposits and withdrawals
● Speed of transacting in a comfortable environment
● Free Dubai Lounge VISA ATM/Debit Card
● Free access to Dubai Islamic Internet and Phone Banking

2.4.2 Savings Account

A Halal Savings Account that is designed to fulfill your banking needs with online
banking access at all branches across Pakistan.

● Available in local and foreign currencies

● Earn attractive monthly profits on your balance
● Halal profit with the convenience of a checking account
● Free Dubai Lounge VISA ATM/Debit Card
● Free access to Dubai Islamic Internet and Phone Banking

Page | 20

2.5 BOARD OF DIRECTORS

1. Mr. Mohamed Saeed Ahmed Abdulla Al Sharif
Chairman OF DIBP

2. Muhammad Saleem
 Vice Chairman OF DIBP

3. Obaid Khalifa Muhammad Rasheed Al Shamsi

Non-Executive Director DIBP

4. Abbas Saifuddin Bhujwala

Non-Executive Director

5. Mr. Salman Liaqat

Non-Executive Director

6.Muhammad Maqbool Allam

Independent Director

7.Naveed A. Khan
Independent Director

8.Junaid Ahmed
Chief Executive Officer

Page | 21

2.6 Key Personal

Mr. Junaid Ahmad
Mr. Junaid is currently serving as Chief Executive
Officer at Dubai Islamic Bank Pakistan. He has over 39 years of banking experience
in Branch Banking, Retail, Operations, Corporate & Investment Banking and
International Banking. From his total banking career, he spent 32 years in the UAE
banking industry. He has also served as a Director on the Board of MESC – Jordan
Dubai Islamic Bank, Bank of Khartoum- Sudan and Bosna Bank International –
Bosnia Herzegovina.

He has done Bachelors in Commerce from the University of Calcutta, India in

1975.

Page | 22

2.7 ORGANIZATION CHART

ORGANIZATION CHART OF DUBAI ISLAMIC BANK

PAKISTAN LTD.

DESIGNATION FOR HIGHER LEVEL OFFICE

PRESIDENT
 🙪
SENIOR EXECUTIVE VICE PRESIDENT

🙪
EXECUTIVE VICE PRESIDENT

🙪
VICE PRESIDENT

🙪
ASSISTANT VICE PRESIDENT

🙪
GRADE I OFFICER

🙪
GRADE II OFFICER

🙪
GRADE III OFFICER

Page | 23

2.8 Head Office

Karim Chambers, CL-5, 6/2, Civil Lines Karachi, 75530
Phone 92 21 352 03674 Fax 92 21 530 8921

Official Site
www.dibpak.com
 Page | 24

2.9 SERVICES of DIBP

DIBPL provides a wide range of services specifically
designed to assist Pakistani businesses.

2.9.1 Cash Management:

DIBPL Cash Management offers comprehensive
end-to-end Sharia compliant solutions to meet cash flow requirements. One can
reduce turnaround times for your account’s receivables, better manage your
payables, and benefit from our value-adding MIS reports. GL reconciliation would
have never been easier for you.

2.9.2 Collections:
DIBPL is an expert at facilitating the collection of sales
proceeds and converting your Receivables into Funds Available. You are provided
the facility of maintaining a single concentration account. Collections from all over
Pakistan (cash/ cheque/ pay order/ demand draft) will be credited to this main
account via DIBPL's real time online branch network.

2.9.3 Bulk & Data Processing:

DIBPL has formed project-to-project alliance
with NIFT on processing and collection. DIBPL will perform the role of the financial
institution while NIFT will provide the expertise in the area of bulk processing.
National Institutional Facilitation Technologies has 10 years of experience in this
area and has previously done such projects for SSGC and LESC successfully.   A
deal with PTCL and KESC has been inked for provision of this service .

2.9.4 Payment Product:

The product facilitates clients in managing their
outflow of funds. The outflows can be through Pay Order/Demand Draft or by way
of electronic cheques issued at the client’s office.

Page | 25

2.9.5 Depository Services / Liquidity / Funds

Management:
In DIBPL's suite of Shari'a approved Investment Depository
Products, your organization will certainly find just the right combination of
attractive returns and enhanced liquidity that it requires. Enhance your funds
management like never before.
2.9.6 Foreign Exchange Remittances:
The Cash Management Group at
DIBPL is adept at handling outward/inward remittances through State Bank of
Pakistan. Be it money transfers within Pakistan or outside, DIBPL will have a
product to meet your needs safely and efficiently. 
The Bank's extensive network of correspondent banks in all major countries of the
world is all that your business will require.

2.9.7 Designated Bank Services:

Designated banking service such as
managing dividend payouts on behalf of corporate clients is also available.

2.9.8 Cash-In-Transit Services:

DIBPL can arrange for its clients a secure
pick up of cash from the customer’s doorstep for deposit at DIBPL's nearest
branch.

2.9.9 Trade Related:

DIBPL offers a range of solutions to help customers in their
trade transactions. DIBPL’s Sales and Service Outlets have the infrastructure in
place to ensure that customers’ documents are processed accurately and in the
fastest possible time.

Page | 26

2.9.10 Import Murabaha:

Import Murabaha is a product, used to finance a
commercial transaction which consists of purchase by the Bank (generally through
an undisclosed agent) the goods from the foreign supplier and selling them to the
customer after getting the title to and possession of the goods. Murabaha
financing is extended to all types of trade transactions i.e., under Documentary
Credits (LCs), Documentary Collections and Open Account.
2.9.11 Wakala Istithmar Facility (Exports):
A unique structure tailor-
made for the exporters of the country, the Wakala Istithmar facility which has
been developed under the direct guidance of Sharia to meet the working capital
requirements of exporters and local manufacturers speaks volumes about our
Shari’a expertise and edge in bringing new Shari’a compliant products to the
market for promotion of Islamic banking and riding those who desire Halal
income from interest-based financing.

2.9.12 Wakala Cum Istisna’a Facility (Local

Supplies):
Istisna’a is a contract for manufacturing or construction whereby the
manufacturer sells to the buyer, goods of specific description, at a fixed price,
which the manufacturer shall make from raw material of its own and deliver to
the buyer at a future date. Istisna cum Wakala is a two-leg short-term trade
finance solution which enables a manufacturer to fulfill his payment obligation
under a documentary credit presentation and allows time for the goods to be
cleared, manufactured and stocked. Once the goods are delivered to the buyer,
the customer then sells the goods, in its capacity as the agent of the bank to
creditworthy and trusted buyers and realizes the sale proceeds on behalf of the
Bank. Such finances are offered in conjunction with L/Cs to corporate customers
under Wakala Istisna facility.
Page | 27

a) Guarantee:

A guarantee is issued by DIBPL (the guarantor) on behalf of its customer (the

applicant) in favor of a third party (the beneficiary), for fulfillment of specifically
defined contractual and/or financial obligations of the applicant. If the obligations
are not fulfilled by the applicant, the guarantor will pay up to a certain amount to
the beneficiary on non-performance of the obligations by the applicant.
b) Investment Banking:

With its team of seasoned professionals, DIBPL has become the Investment
Bank of choice for local and regional clients in a short span of time. DIBPL
leverages the regional expertise and local knowledge to create an efficient blend
of solutions for our customers.
DIBPL’s Investment Banking provides its clients with a unique combination of
expertise, broad range of investment banking/financial services and access to top
regional decision makers. DIBPL derive strength from our team that has unrivalled
experience in dealing with the largest M&A, Advisory and Fundraising
transactions in the country.

Page | 28

CHAPTER # 3

3.0 Structure of DIBP

In Dubai Islamic Bank, the head is called “Chairman” of

the Bank. And after Chairman there is Six Broad of Directors. Dubai Islamic Bank
has Eleven Groups which control the working of the Divisions, Wing, Department,
Section and Regional of the Dubai Islamic Bank. In DIBPL,
“Department” is called “Wings”

3.1 IMAGE OF STRUCTURE

Page | 29
Page | 30
 3.2 ORGANIZATION HIERARCHY OF DIB

ORGANIZATION HIERARCHY CHART

CHIEF EXECUTIVE OFFICER

EXECUTIVE INCHARGE ISLAM BAGKING
GROUP HEAD
REGIONAL MANAGER REGIONAL MANAGER REGIONAL MANAGER

NORTH CENTRAL SOUTH

 worked in Dubai Islamic Bank Pakistan Limited as an internee for two months.
During internship, I rotated in different departments where I learned about these
departments. The branch manager monitors the whole branch to develop
efficiency and effectiveness. The different department's details are listed below.
There are seven departments are operating in F-10 Markaz Branch. In deposits
section, various kinds of deposits are made in routine and reported to head office.
The deposit section is very efficient and active. In remittances section deals with
external and internal remittances to facilitate the customers. Remittances are
transferred through pay order, bank draft and telegram transfer. In clearance
department, cheques are cleared through clearing house by using the facility of
NIFT.
In advances department, bank makes different kinds of advances and offer
attractive Islamic compliance products to attract customers. In other
departments, HR department functions the recruitment, performance appraisal,
training and other relevant jobs.  In cash department, the collection and payment
of cash is made.

Page | 31
 CHAPTER # 4

4.O VARIOUS DEPARTMENTS DETAILS

DIBPL have a different department so I am going to explain the performance of

every department.

4.1 CASH DEPARTMENT

Cash department performs the following
functions, 

4.1.1 Receipt
The money, which either comes or goes out from the bank, its
record should be kept. Cash department performs this function. The deposits of
all customers of the bank are controlled by means of ledger accounts. Every
customer has its own ledger account and has separate ledger cards.

4.1.2 Payments
It is a banker’s primary contract to repay money received for
this customer’s account usually by honoring his cheque.

4.1.3 Types of Cheques

Some specific types of cheques are being
entertained in the clearing department of DIBP.

1 LOCAL CHEQUE
By local cheque we mean collection of cheque from the
banks which are members of the clearinghouse and which are located within the
city.
Page | 32
2 OUT STATION CHEQUE
 

By out station cheques we mean collection of

cheque from the banks which are situated outside the city. It means that
presenting bank and the bank on which the cheque is drawn are not situated in
the same city.

4.2 CLEARANCE DEPARTMENT

 

A clearing house is an association of commercial

banks set up in given locality for the purpose of interchange and settlement of
credit claims. The function of clearinghouse is performed by the central bank of a
country by tradition or by law. In Pakistan, the clearing system is operated by the
SBP. If SBP has no office at a place, then NBP, as a representative of SBP act as a
clearinghouse.

The easy, safe and most efficient way is to offset the reciprocal claims against the
other and receive only the net amount owned by them. This facility of net
interbank payment is provided by the clearinghouse.

The representatives of the local commercial banks meet at a fixed time on all
business days of the week. The meeting is held in the office of the bank that
officially performs the duties of clearinghouse. The representatives of the
commercial banks deliver the cheques payable at other local banks and receive
the cheques drawn on their bank. The cheques are then sorted according to the
bank on which they are drawn. A summary sheet is prepared which shows the
names of the banks, the total number of cheques delivered and received by them.
Totals are also made of all the cheques presented by or to each bank. The
difference between the total represents the amount to be paid by a particular
bank and the amount to be received by it. Each bank then receives the net
amount due to it or pays the net amount owed by it.

4.2.1 In-word clearing Books

The bank uses inward clearing register for the
purpose of recording all the details of the cheques that the other banks have
issued on the bank. Page | 33
 4.2.2 Out-Word Clearing Books
The bank uses outward clearing register for
the purpose of recording all the details of the cheques that the bank has delivered
to other banks.

4.3 ADVANCES DEPARTMENT

DIBPL give loans to the borrowers for
different purposes. These loans are given for various sectors for different periods.
Small Finance, Cash Finance, Personal Loans, Demand Finance, Running Finance,
Corporate Finance, Export Import Financing, House Building Finance.

4.4 REMITTANCE DEPARTMENT

Another important department in the
bank is remittances. People send their money to the other persons and
organizations through various ways i.e. Bank draft, Telegraphic Transfer, Mail
Transfer, Coupons, Govt. Draft and Western Union Money Transfer etc. It works
both inward and outward.
 DIBPL offers the following forms of remittances.
Demand Draft
  Telegraphic Transfer
Pay Order
  Mail Transfer
  Safe custody of specimen signature book
  Preparation of periodical statements
  Any other work/ duty assigned by manage

4.5 DEPOSITS DEPARTMENT

Customers keep their savings in PLS Saving
Accounts and businessmen save their money in bank Current Accounts . DIBPL
gives profit on saving accounts and special saving accounts.
Page | 34
 4.6 FOREIGN EXCHANGE DEPARTMENT
This department mainly
deals with the foreign business. The main functions of this department are:
a)      L/C dealing.

b)      Foreign currency accounts dealing.

c)      Foreign Remittance dealing.

DIBPL is committed to offering its business customers the widest range of options
in the area of money transfer.  If you are a commercial enterprise then our Letter
of Credit service is just what you are looking for. With competitive rates, security,
and ease of transaction, DIBPL Letters of Credit are the best way to do your
business transactions

This department deals with the foreign currency accounts which mainly include
dollar account, euro account etc.

4.7 PRIVILEGE BANKING DEPARTMENT

4.7.1 Online Banking
This department is functioning only in online branches in
the bank. This is a fast track banking system in modern banking. DIBPL is also
trying to enhance this facility for their customers.

4.7.2Utility Services
Keeping in view the difficulties faced by general public
DIBPL has taken the initiative to provide service for collection/receipt of utility
bills on behalf of WAPDA, Sui Gas and PTCL from 9.00 am to 5.00 pm all the
branches throughout the countries are observing this practice to ease the long
queues lined-up at the counters of banks.

Page | 35
 CHAPTER # 5
5.0 HUMAN RESOURCES MANAGEMENT DEPARTMENT
Human Resources
Management Department works for the betterment of the employees. Enhances
skills, training management, service benefits, wages, medical facilities, staff loans
are basic functions of this department.

5.1 COMPLIANCE DEPARTMENT

Role of branch compliance department is to
reconcile the prescribed frequencies, investigate long pending reconciliation item,
and ensure correct treatment every half year and clearing system service branch-
in major cities. Internal control is the integration of the activities, plans, attitudes,
policies and efforts of the people of the bank working together to provide
reasonable assurance that the organization will achieve its objectives and mission.

5.2 INFORMATION TECHNOLOGY DEPARTMENT

Bank’s data collection
and information system run by Regional Data Collection Center. This department
manages staff training programs regarding computer.

5.3 ISLAMIC BANKING

The year 2005 marked the first year of Islamic banking
operations. During the year under review, in addition to active participation in
various Sukuk transactions, DIBPL has extended its Islamic Banking Operations
Network.

Page | 36
5.4 FINANCE & ACCOUNTS DEPARTMENT
Accounts department is a
backend department at Dubai Islamic Bank, -10 Markaz; Islamabad performs the
following Accounting Operation:

5.4.1 Reports
It generates reports like Statement of Account Activity (a report on the
activity of all accounts), Statement of Affairs (a report on the assets and
liabilities), Statement of Foreign Exchange (a report on the foreign exchange
currencies at the bank) and Statement of Profit and Loss (a report on the income
and expenditures of DIBPL, F-10 Markaz Branch, Islamabad). These reports can be
generated at daily, weekly, monthly, quarterly or yearly basis as required by the
bank.

5.4.2 Income and Expense

The department also needs to calculate the revenues
and expenses, control expenditure and forecast profits every month.

5.4.3 Budget
Formulation of yearly budgets & targets in consultation with the
branch manager is also done by the accounts department.

5.4.4 Activity Checking

Daily activity checking and monitoring is done by the
accounts department of the whole bank

5.4.5 Storage of Records

Accounts Department also has the duty to store
vouchers and system generated reports.

Page | 37
 Market Analysis

Dubai Islamic Bank Pakistan Limited is growing rapidly in Pakistan. This shows the
success of its various strategies. Various factors of marketing for DIBPL are:

Target Market
Marketing Mix

5.5.1Target Market

The DIBPL is mainly focusing on individuals and SMEs. Small and medium sized
companies are its main customers. The reason behind focusing on corporate
sector is that a single company can deposit a large sum of money that is difficult
to achieve by focusing on individual customers. It does not mean that DIBPL is
lacking the other side of the picture. It has also got individual customers.
Corporate sector constitutes 80% of all the deposits of the bank. This is the reason
DIBPL is focusing on corporate sector. Due to this reason we see no
advertisement of DIBPL in print and electronic media. Target marketing is the
basic step for the rest of the strategies being developed.

5.5.2Marketing Mix

Marketing Mix includes four P’s of marketing. These are

Product
Price
Place
Promotion

Products and services provided by DIBPL have been earlier in this report. All
the products and services offered by DIBPL are purely Islamic. No other bank
offers such services to the customers.

Page | 38
 Price means that service charges of the bank. Charges are determined by the
Schedule of Charges every year. Bank provides quality services at very
competitive charges. For example, there are charges for the renewal of ATM
card, renewal of cheque books and cash withdrawals.
The main factor to discuss is the promotion. Promotion strategies consist of

promotion mix. The promotion mix includes:

Advertising
Publicity
Sales Promotion
Personal Selling
Advertising is paid and non-personal communication of companies’ message to
target customers. DIBPL has no focus of advertising. This is also a weakness of
DIBPL, because its customers are spending a lot of funds on advertising.
Competitors are taking full advantage of it. As DIBPL is offering products and
services to individual customers, so they need to communicate their products and
services with people through print and electronic media.

DIBPL has very effective personal selling teams. Their Financial consultants and
Relationship managers convince corporate customers to an account in the bank.
This is a competitive advantage of DIBPL. This is the reason due to which DIBPL
stands good in the market. Even without advertising and other communication
methods DIBPL manages to gain a good market share.

Page | 39
5.6 BankaTakaful service (Insurance)

The word Takaful means to guarantee; to help; to take care of one’s needs.
Takaful is a system based on the principle of Ta’awun (mutual assistance) and
Tabarru (voluntary contribution), where risk is shared collectively by a group of
participants, who by paying contributions to a common fund, agree to jointly
guarantee themselves against loss or damage to any one of them as defined in
the pact. Takaful is operated on the basis of shared responsibility, brotherhood,
solidarity and mutual cooperation. 

5.6.1 Al-Islamic Cash cover

DIBPL presents Al-Islamic Cash Cover – a product of Pak-Qatar General Takaful
that offers coverage against loss of cash resulting from armed hold-up, mugging
and/or forced deprivation of cash following its withdrawal. This agreement covers
only cash personally withdrawn by the customers form his own account through
any I-Link machine or over the counter at any DIBPL branch in Pakistan.

The coverage of the Takaful is restricted to 1.5 kilometers radius or 30 minutes

after the withdrawal, whichever occurs first. Any robbery/forced deprivation
incident occurring after 20 minutes from the time of cash withdrawal or outside a
radius of 1.5 kilometers from the cash withdrawal point/ATM/branch would not
be covered by the Takaful Company.

5.6.2 Al-Islamic Takaful

DIBPL is proud to introduce Al-Islamic Saving & Takaful Plan in collaboration with
Pak Qatar Family Takaful Ltd. (PQFTL) Al-Islamic Saving & Takaful Plan is a Shari’a
compliant alternative to conventional insurance, offering a unique combination of
saving, investment and protection. The Al-Islamic Saving & Takaful Plan offers
one’s peace of mind and takes care of the future of one’s loved ones by offering a
savings plan and providing Takaful coverage in the event of death to one’s
beneficiaries. So, rest assured, with Al-Islamic Saving and Takaful Plan, one’s
future plans are in safe hands.
Page | 40
As an individual you have many dreams…
A college education for your child from a prestigious university
A dream wedding for your beloved daughter
Your spiritual journey to perform Hajj
A comfortable retired life with enough savings to take care of you and your loved
ones
Any other financial objectives you may want to achieve
There's nothing better than the Al-Islamic Saving & Takaful Plan to fulfill your
dreams the Islamic Way! Based on your saving capacity, Al-Islamic Saving &
Takaful Plan offers you a range of investment options to suit your risk profile, with
most flexible payment options.

Page | 41
5.7 Account Opening at DIBPL
When a customer comes to open his account, he has to fill an Account Opening
form (AOF). New customer also signs his/her signature on Specimen card for
further transactions with the banks, and also signs the Bank Service Agreement
(BSA).
Verisys” a verification system started by NADRA on the CNIC of the new account
opener. A “Verisys” tells that whether the candidate is a Pakistani citizen or not
and all the information written in account opening form are true or not by
matching the information to the database of NADRA. SBP and World check are
checked to ensure that new customer is not in the blacklist of State Bank
defaulters or his name is not in any terrorist organization. His job ID card’s
photocopy and company’s letter on letterhead is taken in case if customer is
employed. The documents required for account opening are as follows

Filled Account Opening Form (AOF)

Banking Service Agreement signed (BSA)
Signed Specimen card.
ATM card form filled.
Other than CNIC signature form
NADRA Verification
World checklist and State Bank list
Job Card/ID card/Company letter
Telephonic verification report

The account opening process is completed by Customer Relation Officer (CRO), by

scanning all the documents and sent to Centralized Account Opening Department.
Account Number is received from CAOD, after Department checks all the
documents and allocates the unique number (Account Number). After opening an
account, Letter of thanks is sent to the account holder directing him to collect the
check book in person after receiving the letter. All the documents are put in jacket
in a safe place for any further reference in the future. Check book and ATM card is
issued to new account holder in 3-4 days’ time. And pin code of ATM card is
received by branch in 4-5 days. Account holder, himself/herself, collects the check
book from the branch.
Page | 42
 CHAPTER # 6

6.0 CRITICAL ANALYSIS

This is a senior role and the Relationship Manager

will manage a portfolio of complex borrowing corporate clients as well as being
the primary point of contact for the banks relationships with the Hedge Fund
Sector.  The role will report to the Head of Corporate Banking.
The ideal candidate will maximize opportunities to strengthen and leverage
existing relationships as well as continue to maintain and ensure high levels of
customer satisfaction and retention all the while generating new
recommendations.  The successful candidate will be experienced in developing
growth plans and expanding the divisions borrowing and non-borrowing
relationships within the hedge fund sector.
Strong working knowledge of commercial banking products, loan agreements,
security and other credit requirements, particularly with respect to the mutual
and hedge fund sectors is preferred.
Essential qualifications include at least 10 years banking experience with at least 5
years in a direct commercial customer contact role: in depth experience in
structuring financing transactions with the mutual and hedge fund sectors;
experience in structuring financing transactions with the property sector will be
considered an asset. Financial manager in establishing relationship always gives
priority of his organization these benefits:

Maximization of profit.
 Earning per share maximization.

Increase of sale
Welfare
Reduce in cost
Maximization of shareholder’s wealth.

Page | 43
6.1 Use of Electronic data in Decision-making

today’s contemporary business, critical and timely decision making is a must and
important too. Today’s bank uses sophisticated software that not only help in
operations but also improves decision making by providing different reports,
which can produce at different periods of time, that can help employees at every
level of the bank’s administration.

6.2 Technical Methods that Affect the Industry

The banking industry of Pakistan is at the forefront of modernizing its daily

operations by introducing the latest technologies in its operations. Some of the
technical methods that are used and affect the banking industry are as follows:

● Advanced technological products and services

● Automation of operational tasks
● Decision making tools
6.2.1 Advanced technological products and services

Automatic Teller Machines (ATM) and ATM cards have been the biggest
innovations that have simply changed the way people today are now making their
personal transaction. With ATM cards, people can take out money from their
accounts at any time, from any bank that they want to, at their convenience.

ATM cardholders can take money out of their accounts, from any ‘1 link’ network
ATM, the largest ATM network of the country. Other ATM networks include
‘Mnet’ and ‘Cirrus’. Today all banks are members of ‘1 link’, while most of them
are members of Mnet and Cirus.

Internet Banking is another major technological product introduced by different

banks of Pakistan. With the help of internet banking, customers with the
convenience of their own personal computers can transfer money from their
accounts, view their balances and a lot more.
Page | 44
6.2.2 Automation of operational tasks

Technical advancements have also impacted the daily operations of banks

in Pakistan. Online transfer of money between branches has increased the
efficiency of the exchange of money between different account holders of the
same bank.
Simple tasks such as balance inquiry and bank statements have become as easy as
a click of a button with highly sophisticated information systems.

All banks today have their own information systems that they can use in almost all
departments like clearing, account opening, car leasing and remittances.

6.2.2 Innovation 
Innovation is a must in modern times, as it will help banks to compete in
today’s highly technologically advanced industry. Some of the innovations that
the banking industry is looking forward are:

● More advanced means of connectivity between branches through better

and advanced software and hardware to maintain connections with banks in
remote areas and during natural calamities in Pakistan. These might include
better connection through WIFI or WiMAX, both new technologies.

● More advanced information systems in banks that are more secure than
before to eliminate any chances of fraud and which are even more user friendly
to help employees to use them not only to make critical decisions but also satisfy
customer needs in a timelier manner.

● Advancements in online transfer from inter branch to an even more helpful

interbank transfer.

Page | 45

CHAPTER # 7
7.0 SWOT ANALYSIS
SWOT analysis is an effective technique to evaluate various
aspects of an organization.
7.1 Strength
DIBPL has this privilege to be the first in the Islamic Banking sector
which give DIBPL a competitive edge over all other banks and being the pioneer of
this industry. DIBPL is enjoying a major share of it.
The first international Islamic Bank in Pakistan with a network of over 80
branches.
The members of Shariah Supervisory Board of DIBPL are internationally renowned
scholars, serving on the boards of many Islamic Banks operating in different
countries.
Being an Islamic Bank, DIBPL has a wide national network. As an emerging
markets bank, it has branches in all major cities of Pakistan with the facility of
online banking, it is very easy for its customers to transact all over the country
DIBPL provides online banking service. Online banking service means that a
customer can withdraw and deposit his money at any branch in the country.
Where this service is not present, cheque has to be presented only in that branch
on which they are drawn. But with this facility, a person has access to its funds at
any branch of the bank
There are many values added features in the products offered by the bank. ATM
cards are provided with every account. Other features are present in various
products. The priority customers enjoy a much-pampered status at the bank
The employees at the bank provide impeccable customer service to their
customers.
Customers are treated with great respect and honored to the utmost degree.
The working environment of bank is very friendly and cooperative. There is no
bossiness in the higher management. The upper management consults its staff in
making decisions and provides them independence in their job areas.

Page | 46
7.2 Weakness
Till the last year, DIBPL had a totally different perspective. The
management was of the view that the customer should come to them and they
don’t need to go to the customer. But in this era of mass marketing and
advertising, it is not possible to stay in competition without these tools. The bank
has now changed its perception arid has started an effective marketing and
advertising strategy. But the previous gaps are still there and there is a lack of
awareness in the people about the bank and its products. The bank needs to
improve in marketing and advertising areas.

It was observed in the bank that the degree of satisfaction of employees was
quite low. First of all, the pays are lower than those offered in other banks.
Secondly, the employees are given targets that are too difficult to achieve. For
example, the targets given to the sales personnel and service department are
higher than any other bank in the country, be it a local bank or a foreign bank.
This makes a job too stressful and tense. It is good to keep people under a
continuous move, but to overstress them can be harmful to them as well as to the
organization.

Due to the dissatisfaction of staff and recession, there is high turnover among
them. People who find other alternatives do not stay with the bank. Therefore,
the bank incurs loss in their training and development.

Page | 47
7.3 Opportunities

Home financing sector can be targeted to maximize profits.

Growing demand of Islamic products and services.
Venturing into Islamic groups outside the countries as an opportunity to expand
business in UAE and Gulf states.
Coming up with the products for the SME to target the medium level customers.
Doing business with the companies having Islamic mindset i.e. Islamic Financial
Institutions.
Increase branch network within the country.
The innovative service of Islamic Insurance and Takaful.

Page | 48
7.4 Threats
Right now, there are a few banks that are providing Islamic banking
services in addition to DIBPL. These banks include Bank Islamic, Al-Barkah Bank,
Meezan Bank and some branches of Bank Alfalah which are dedicated for Islamic
Banking services. That’s why there is no intense threat for the DIBPL in the near
future but it is not difficult to say that more banks may enter in this field as the
awareness of Islamic banking is increasing among the public. Therefore, the DIBPL
should not be contented to its present market share but should strive for
providing better and better and modern services.

Due to the increase in the conventional commercial banks, there is an increase in

competition. Also, there is a lot of aggressive marketing by the competitor banks.
This is also threat for DIBPL.

Reviewing this SWOT analysis from time to time would help evaluate bank’s
position. It would help the management in comparing their strengths of the past
with those of the present and to what extent the management has been able to
overcome the weaknesses.

Page | 49
 CHAPTER # 8
8.0 FINANCIAL ANALYSIS
Financial analysis is the process of evaluating
businesses, projects, budgets, and other finance-related transactions to
determine their performance and suitability. Typically, financial analysis is used
to analyze whether an entity is stable, solvent, liquid, or profitable enough to
warrant a monetary investment.

8.1Understanding Financial Analysis

Financial analysis is used to evaluate
economic trends, set financial policy, build long-term plans for business activity,
and identify projects or companies for investment. This is done through the
synthesis of financial numbers and data. A financial analyst will thoroughly
examine a company's financial statements, the income statement, balance sheet,
and cash flow statement. Financial analysis can be conducted in both corporate
finance and investment finance settings.

One of the most common ways to analyze financial data is to calculate ratios
from the data in the financial statements to compare against those of other
companies or against the company's own historical performance.

For example, return on assets (ROA) is a common ratio used to determine how

efficient a company is at using its assets and as a measure of profitability. This
ratio could be calculated for several companies in the same industry and
compared to one another as part of a larger analysis.

8.2 How Financial Analysis is Used

8.2.1 Corporate Financial Analysis
In corporate finance, the analysis is conducted
internally by the accounting department and shared with management in order to
improve business decision making. This type of internal analysis may include
ratios such as net present value (NPV) and internal rate of return (IRR) to find
projects worth executing.

Page | 50
Many companies extend credit to their customers. As a result, the cash receipt
from sales may be delayed for a period of time. For companies with large
receivable balances, it is useful to track days sales outstanding (DSO), which
helps the company identify the length of time it takes to turn a credit sale into
cash. The average collection period is an important aspect in a company's
overall cash conversion cycle.

A key area of corporate financial analysis involves extrapolating a company's

past performance, such as net earnings or profit margin, into an estimate of the
company's future performance. This type of historical trend analysis is beneficial
to identify seasonal trends.

For example, retailers may see a drastic upswing in sales in the few months
leading up to Christmas. This allows the business to forecast budgets and make
decisions, such as necessary minimum inventory levels, based on past trends.

8.2.2 Investment Financial Analysis

In investment finance, an analyst external to the
company conducts an analysis for investment purposes. Analysts can either
conduct a top-down or bottom-up investment approach. A top-down approach
first looks for macroeconomic opportunities, such as high-performing sectors,
and then drills down to find the best companies within that sector. From this
point, they further analyze the stocks of specific companies to choose potentially
successful ones as investments by looking at a particular
company's fundamentals.

A bottom-up approach, on the other hand, looks at a specific company and

conducts similar ratio analysis to the ones used in corporate financial analysis,
looking at past performance and expected future performance as investment
indicators. Bottom-up investing forces investors to
consider microeconomic factors first and foremost. These factors include a
company's overall financial health, analysis of financial statements, the products
and services offered, supply and demand, and other individual indicators of
corporate performance over time.

Page | 51
8.3 Types of Financial Analysis
There are two types of financial analysis: fundamental
analysis and technical analysis.

8.3.1 Fundamental Analysis

Fundamental analysis uses ratios gathered from data within
the financial statements, such as a company's earnings per share (EPS), in order
to determine the business's value. Using ratio analysis in addition to a thorough
review of economic and financial situations surrounding the company, the analyst
is able to arrive at an intrinsic value for the security. The end goal is to arrive at a
number that an investor can compare with a security's current price in order to
see whether the security is undervalued or overvalued.

8.3.2 Technical Analysis

Technical analysis uses statistical trends gathered from
trading activity, such as moving averages (MA). Essentially, technical analysis
assumes that a security’s price already reflects all publicly-available information
and instead focuses on the statistical analysis of price movements. Technical
analysis attempts to understand the market sentiment behind price trends by
looking for patterns and trends rather than analyzing a security’s fundamental
attributes.

Page | 52
8.4 BALANCE SHEET OF DIBP

PROFIT AND LOSS STATEMENT OF DIBP

8.5 PROFIT AND LOSS STATEMENT OF DIBP

8.6 INCOME STATEMENT OF DIBP
8.7 VERTICAL ANALYSIS
In vertical analysis a significant item of a financial
statement is used as a base value, and all other items of the financial statements
are compared to it. In balance sheet, total assets are assigned 100%. Each asset
account is expressed as a percentage of total assets. Total liabilities and
stockholder’s equity are also assigned 100%. Each liability and equity account is
then net income is given the value of 100% and all other amounts are evaluated
in comparison to net sales. The resulting figures are then given a common size
statement.

In balance sheet of the bank, the most important item is earning assets. There
are four earning assets. Bank has strong earning assets like advances
investments and lending to financial institutions has major percentage in of
assets of bank. In liability and equity analysis the borrowing from financial
institutions and deposits have major portion and reserve and share capital has
major portion in equity. Out of the three earning assets (lending to financial
institutions, advances and investments) only advances have recorded a growth
while Lending to financial institutions and Investments fell respectively.

Vertical analysis of profit and loss shows increase or decrease in each item as a
percentage of sales means that sales are chosen as key figure. As we have seen
in the table the interest expense is increasing with the turnover so the bank is
more utilizing on expenses. Net Interest income was 10% higher this year to Rs
37.058 billion owing to volume growth. The interest earned in the 12 months of
2008 is 21% higher than that of 2019 but it was matched by more than
proportionate increase in the interest expenses, which rose by 41%. So, in
vertical analysis the net interest income is decreased in 2018 as compared to
2019.

DIBPL directors give some of reasons in increasing in interest expenses.

    Firstly, the banks have been imposed a minimum of 5% deposit rate on all the
savings schemes. This had previously been left at the banks' discretion as to how
much they have to pay. A few of the banks have also been penalized by the SBP
for acting like cartel in deposits.

Page | 56

Secondly, there has been other attractive scheme from the National Savings,
which offered better rates and drained the liquidity from banking sector

Furthermore, the economy was going through high inflation, so the people were
 

not too optimistic about saving in banks as the money was losing its value very
fast.

Administrative expenses show decreasing trend also the profit after tax is in
increasing position during the last two years, that position good for the company.
Only profit available for appropriation is increasing as compared to previous
years, which is 101.29% in 2019.
 Page | 57

8.9 HORIZONTAL ANALYSIS

In horizontal analysis different period’s data is
compared and in one-year item is selected and item is compared with the same
category of item of next period. In this analysis the year should be consecutive
for the analysis and then percentage difference is taken to see the performance
over a period of time. This analysis is used to evaluate the trend in the accounts
over the years.

The horizontal analysis of Profit & Loss account of years 2018-2019 shows a
continuous increase in markup, non-mark up and also there is a rapid and huge
increase in profits in 2019. The administrative expenses have decreased in 2018
but again it will decrease in 2019.
The income after tax is increased, which was 19% higher than the income
earned in 2018. The bank profits before tax are increasing trend, which is 18%
higher than the previous year of 2018. The management of the bank gives many
reasons of the radical change in profitability.

The interest expense is also increase in 2018-2019. The management give

different reasons that the banks have been imposed a minimum of 5% deposit
rate on all the savings schemes. This had previously been left at the banks'
discretion as to how much they have to pay. A few of the banks have also been
penalized by the SBP for acting like association in deposits. Secondly, there has
been other attractive scheme from the Savings, which offered better rates and
drained liquidity from the banking sector.

Page | 58

8.10 RATIO ANALYSIS

Ratios provide the means of showing the relationship,
which exists between, figures of the Balance Sheets and Income Statements.
The analysis is undertaken to assess important characteristics of business-like
liquidity, solvency and profitability. A study of these aspects enables drawing
conclusions as to financial requirements and capabilities of business units.
Ratios may be classified in a number of ways to suit any particular purpose.
Different kinds of ratios are selected for different types of situations. Some of the
ratios calculated for DIBPL are given below.

8.10.1 LIQUIDITY RATIO

 Comparison gives an indication of the short-term debt
paying ability of an entity. Since a bank is also a business firm so to maintain
adequate liquidity is also crucial to carry out business activity.

8.10.2 Current Ratio

It is used to measure the ability of an enterprise to meet its
current liabilities out of current assets.

Current Ratio = Current Assets / Current Liabilities

2015 2016 2017 2018 2019

Current Assets 340,134 7,550,223 19,425,608 224163347 270990589

Current liabilities 119,340 4,903,849 16,952,908 204788616 249508672

Current Ratio 2.85 1.53 1.14 1.09 1.08

INTERPRETATION
The current ratio of DIBPL, for the year 2019, is 1.08 times of current liabilities. It
is good to meet the short-term obligations, when compared with the current ratio
2018 which is 1.09 times of current liabilities. The company should maintain
minimum limit of current ratio for Bank.
Page | 59

8.10.3 Net Working Capital

Working capital compares current assets to current

liabilities, and serves as the liquid reserve available to satisfy contingencies and
uncertainties. A high working capital balance is mandated if the entity is unable to
borrow on short notice. The ratio indicates the short-term liquidity of a business
and in determining if a firm can pay its current liabilities when due.

Net Working Capital = Current Assets – Current Liabilities

2015 2016 2017 2018 2019

Current Assets 340,134 7,550,223 19,425,608 224163347 270990589

Current liabilities 119,340 4,903,849 16,952,908 204788616 249508672

Current Ratio 220794 2646374 2472700 19374731 21481917

Net working capital of 2019 increases from year 2018. This is safety cushion to
creditors. The volume of net working capital is showing positive trends.

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8.10.4 DEBT RATIOS / SOLVENCY RATIOS

Solvency is a company’s ability to meet
its long-term obligations as they become due. An analysis of solvency
concentrates on the long-term financial and operating structure of the business.

8.10.5 Debt to Asset / Debt Ratio

Provides information about the company's ability to
absorb asset reductions arising from losses without endangering the interest of
creditors.

Debt Ratio = Total Liabilities / Total Assets

 2015 2016 2017 2018 2019
Total Assets 340,134 7,550,223 19,425,608 231822753 283610590

Total liabilities 119,340 4,903,849 16,952,908 215072579 264983447

Current Ratio 0.35 0.64 0.87 0.92 0.93

INTERPRETATION
Creditors prefer low debt ratio; debt ratio shows that how
much assets the company has to honor their obligations. This ratio is increased
from 0.92 to 0.93. This is good for the company because the company has 1
asset to pay 0.92 debts.

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8.10.6 Debt to Equity Ratio

Indicates how well creditors are protected in case of the
company's insolvency. The debt to equity is a significant measure of solvency
since a high degree of debt in the capital structure may make it difficult for the
company to meet interest chargers and principal payments at maturity.

Debt to Equity Ratio = Total Debt / Total Stockholders’ Equity      

2015 2016 2017 2018 2019

Total Debt 340,134 7,550,223 19,425,608 215072579 264983447
 Total Equity 119,340 4,903,849 16,952,908 4913640 6164299

Debt to Equity 2.85 1.53 1.14 43.77 42.98

Ratio

                 

INTERPRETATION

Debt to equity ratio is the relationship between borrowed funds and

owner’s capital and equity multiplier is the relationship between total assets and
total equity. But it is good that the ratio is decreasing in 2019 than 2018. The
overall leverage position is showing better trend as compared to previous years.

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8.10.7 PROFITABILITY RATIOS

This ratio shows what percentage of net profit to
the total income is.

This ratio measures the firm’s profitability of sales/ interest earned after taking
account of all expenses and income taxes. This ratio can be calculated as:

Net Profit Margin = Net Profit / Revenue *100

2015 2016 2017 2018 2019

Net profit 340,134 7,550,223 19,425,608 3843786 2544763

Revenue 119,340 4,903,849 16,952,908 1069854 702660

Net Profit Margin 285.01 153.96 114.58 359.28 362.162

INTERPRETATION

From the calculation it is very much clear that the

performance of DIBPL is very good still to 2017. And the trend is upward. It tells
us a firm’s net income per rupee of revenue. As the trend is upward it shows the
high profits in revenue per rupee in case of DIBPL. It is because of high
advances the DIBPL has given to the people but in 2018. the ratio trend is
downward which not good for DIBPL.

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8.10.8 Return on Equity

Measures the income earned on the shareholder's

investment in the business.

Return on Equity = Net Income / Average Total Equity

2015 2016 2017 2018 2019

Net Profit 340,134 7,550,223 19,425,608 1201880 1464775
(After Tax Profit)
 Total Equity 119,340 4,903,849 16,952,908 4913640 6164299

Return on Equity 2.85 1.53 1.14 0.24 0.23

INTERPRETATION

It is decreasing every year with different rate. This condition is

not good for DIBPL because every investor wants to earn high income on his
investment.

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8.10.9 Return on Total Assets

Measures the company's ability to utilize its assets to

create profits.

Return of Total Assets = Net Income / Average Total Assets *100

2015 2016 2017 2018 2019

Net Profit 340,134 7,550,223 19,425,608 1201880 1464775
(After Tax Profit)
 Total Assets 119,340 4,903,849 16,952,908 231822753 283610590

Return on Total 285.01 153.96 114.58 0.51 0.51

Assets

INTERPRETATION
The results show that the Return on Asset are decreased which
show that the DIBPL Assets are not properly utilize in 2019 or maybe there are
no proper environment for the Banking sector because in 2018 Pakistan face the
economic crisis.

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8.10.10 BANK SPECIAL RATIO

  Investment to Asset Ratio

Investment to Total Assets = Investment / Total Assets

2015 2016 2017 2018 2019

Investment 340,134 7,550,223 19,425,608 45850970 57644781
Total Assets 119,340 4,903,849 16,952,908 231822753 283610590

Investment to Total 2.85 1.53 1.14 o.19 0.20

Assets

INTERPRETATION
This ratio indicates that out of total asset how much bank
utilize its assets for further investing. This ratio in decrease in 2019, which is not
useful for the bank to enhance its revenues.

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8.10.11 Advances to Deposit Ratio

Advances to Deposit Ratio = Total Advances / Total Deposit

2015 2016 2017 2018 2019

Total Advances 340,134 7,550,223 19,425,608 1241840 9348332
 Total Deposit 119,340 4,903,849 16,952,908 1226954 1519905

Advances to Deposit 2.85 1.53 1.14 1.01 6.15

Ratio
INTERPRETATION

Loans or advances are the major assets of a bank while

deposits are major liabilities of a bank. Higher ratio shows the better solvency of
bank.

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8.10.12 Cash to Deposit Ratio

Cash to Deposit Ratio = Cash / Deposit

2015 2016 2017 2018 2019

Cash 340,134 7,550,223 19,425,608 II652288 II652288
 Total Deposit 119,340 4,903,849 16,952,908 1226954 1519905

Cash to Deposit 2.85 1.53 1.14 9.49 7.66

Ratio
INTERPRETATION

This ratio shows that how much cash you have to pay the
liabilities (deposits). As this ratio shows that the company has fewer amounts of
cash than deposits. It also indicates that the bank is investing so the bank is
enhancing its business. But at the same time, it could be a risk for bank for
liquidation.

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8.10.13 Equity to Assets

Equity to Assets = Equity / Total Assets

2015 2016 2017 2018 2019

Equity 340,134 7,550,223 19,425,608 4913640 6164299
Total Assets 119,340 4,903,849 16,952,908 231822753 283610590
Equity to Total 2.85 1.53 1.14 0.021 0.021
Assets

INTERPRETATION

This ratio shows the position of equity in total assets of

business. This ratio is in increasing trend. But the bank should increase its equity
by increasing the wealth of shareholders.

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8.10.14 Equity to Deposits

Equity to Deposit = Equity / Deposits

2015 2016 2017 2018 2019

Equity 340,134 7,550,223 19,425,608 4913640 6164299
Total Deposits 119,340 4,903,849 16,952,908 1226954 1519905

Equity to Total 2.85 1.53 1.14 4.00 4.05

Deposits
INTERPRETATION

This ratio shows that how much equity part is there in total
structure. The capital advocacy requirement is 28%. The bank was not fulfilling
the requirement in 2016 & 2017 but now bank has 4.05%, which is good.

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8.10.15 Earning Per Share

Earning Per Share = Net Income / No of Ordinary Shares

2015 2016 2017 2018 2019

Net Profit 340,134 7,550,223 19,425,608 1201880 1464775
(After Tax Profit)

No of Ordinary 119,340 4,903,849 16,952,908 11652288 11652288

Shares
Earning Per Share 2.85 1.53 1.14 0.13 0.12
(EPS)

INTERPRETATION

As their earnings per common share is good year by year it

means that the results of the ratio indicate that the firm has paid a handsome
return on investment showing the profit generations. Because the company’s net
income is increasing gradually. As shown above the bank basic earnings per
share is increasing due to an increase in net income. This shows how much profit
each share has earned in any particular year. It is the most important ratio for
people who decide about investing their money. Although it decreased in 2019
but the overall performance is good.

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8.10.16 Return on Total Investment

Measures the income earned on the

shareholder's investment in the business.

Return on Investment = Net Income / Total Investment

2015 2016 2017 2018 2019

 Net Profit 340,134 7,550,223 19,425,608 1201880 1464775
(After Tax Profit)

Total Investment 119,340 4,903,849 16,952,908 45850970 57644781

Return on 2.85 1.53 1.14 0.02 0.02

Investment

INTERPRETATION

It is decreasing every year with different rate. This condition is not good
for DIBPL because every investor wants to earn high income on his investment.

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8.10.17 Return on Fixed Assets.
Measures the company's ability to utilize its fixed
assets to create profits.

Return on Fixed Assets = Net Income / Average Fixed Assets *100

2015 2016 2017 2018 2019

Net Profit 340,134 7,550,223 19,425,608 1201880 1464775
(After Tax Profit)

Total  Fixed Assets 119,340 4,903,849 16,952,908 45850970 57644781

Return on Fixed 2.85 1.53 1.14 0.026 0.025
Assets

INTERPRETATION
The results show that the Return on Asset are decreased
which show that the DIBPL Assets are not properly utilize in 2019 or maybe there
are no proper environment for the Banking sector because in 2018 Pakistan face
the economic crisis its assets to create profits.

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8.11 PEST ANALYSIS
The uncontainable ecological issues and factors for
Islamic banking in Pakistan are presented in the following heads:

8.11.1 Political and Legal Environment:

Pakistan has tried various forms of parliament, the army and the
President of the Government's efforts to achieve political stability. Through
democratic and constitutional struggle, Pakistan received its independence in
1947. Although the history of democratic government is not so good and many of
the crises in Pakistan are evidenced again after return to democracy. The
constitution of the Islamic Republic of Pakistan adopted in 1985 provides for a
federal parliamentary system with a president as head of state and a popularly
elected prime minister as head of government. Another legacy involved in
Pakistan politics is military force. It has ruled many times after the independence
based on action by the doctrine of necessity. In Pakistan the military has
remained the most cohesive national establishment. United States has played a
significant part in Pakistan's politicians and government policies. Pakistan's
relations with the United States in the context of the Cold War. Now, Pakistan to
fight terrorism as a strategic partner with the United States before the state's role.

Pakistan opened up its economy for private investors to finance and boost their
economy from the beginning in every sector of the country. Consequently, in the
1960s, Pakistan's economy represents itself as a prosperity model in developing
countries. But ordinary people's living standards did not improve. In 1972, the
new government nationalized 40 business and industrial groups and as a result
there occurred an outflow of private capital from the country. General Zia, a
military dictator took control of government in 1977 and introduced free economy.
With the passage of time many new Government and private banks started their
operations in Pakistan.

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In the 1980s there was given emphasis for the introduction of Islamic
banking (Interest free banking) by the government. The government (Ziaul Haq’s
government (a military dictator) of Pakistan took initiative to institutionalize the
interest free banking but never pursued it seriously. On one hand, the
government wanted to eliminate interest from the economy but on the other
hand, it put a ten-year ban on the Federal Shari’at Court (FSC) to issue any
verdict against the interest-based government transactions. The governments
that came after the departure of Ziaul Haq did not take any serious interest in
implementing interest free banking. In 1991 FSC judgment on riba in the SC of
Pakistan that had ordered the government to clean interest from the national
economy within six months. The government argued that bank interest is not riba
and it is completely impossible in the present-day circumstances to break up the
economy of Pakistan from the international economy by abolishing interest.
These contradictions in the sayings and actions of the IJI government revealed
that it took these Islamic measures to win the support of people, not for actually
implementing it. Government of Nawaz Sharif in the 1990s introduced
liberalization and deregulation in the economy on large level. Pervez Musharaf, a
military dictator took control of command in 1999 and his government introduced
many new policies for open economy and provided incentives to private
investors. On 18 February, 2008 there is again an elected new government
which was formed after the elections and after completion of 5-year Pakistan
economical dimension not in sound tone. All through political interference and
harassment Islamic banking industry was fully born during Musharaf regime, and
is a flourishing economic phenomenon.

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8.11.2 Economical Environment:
Pakistan’s economy has made admirable
progress in the last couple of years through a comprehensive program. The main
aims and goals of this program included, restoring investor’s confidence through
stability and consistency in economic policies, issuance of relaxed work permits,
tax reforms, increasing domestic savings, restructuring and privatizing state
enterprises, boosting agriculture and reviving industry. Government also
introduced a program of financial reforms in order to enhance competition in the
banking sector by eliminating direct credit and improving regulation and
supervision. GDP growth rate of Pakistan has been showing a consistency of 6
% plus during the last four years. There is also seen an increase in per capita
incomes that marked almost $ 850. Rate of unemployment has gone down to
some extent and the size of the economy is double which is now $ 130 billion.
Large scale manufacturing has grown in double digits and the cumulative private
sector credit by banking system in the last three years was more than $15 billion
compared to less than $10 billion in the previous ten years.

Investment (FDI) in Pakistan is increasing every year and is amounting to $ 3

billion and it is the highest FDI amount in South Asia. (Husain 2006) Fast and
sustained growth of Pakistan’s economy has enabled Pakistan to position itself
as one of the fastest growing economies of the Asian region. This economic
growth of Pakistan has got the attention of foreign investors and leading
companies and they are investing in different projects in Pakistan. The gradual
increase in oil prices and food prices are impacting the economy of the whole
world including Pakistan. There was a big disaster in Pakistan as a result of a
severe Earthquake of October, 2005, but Pakistan’s growth for the year remained
impressive despite of all these issues. The service sector showed continuity in its
performance and grew by 8 % as against the target of 7 %. Spending power of
consumers is also going in upward directions.

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Housing is one of the basic necessities of human and the demand of housing in
urban areas of Pakistan is increasing at the rate of 8 %. Pakistan is facing real
problem in housing units and price of real estate is increasing day by day and as
a result it’s becoming very difficult for a common man to have his own house.
Pakistan is facing a shortage of 7.5 million housing units and 3 to 6 persons are
living in a house of one room on average. Mainly the mortgage market is being
held and dominated by House Building Finance Corporation (HBFC) with a
market share of 82 %. Government is giving priority to housing sector and
allocated significant resources for the development of his sector. In 2009-10 flood
disaster has disturbed every financial sector of Pakistan.

The potential effects of growth in the housing sector will be employment

opportunities besides generating industrial, commerce and trade activities. SBP
is playing its role as a facilitator, guide and catalyst for the sector. (Javaid 2006)
Consumer financing was noted at 15.4 billion at the end of September, 2007
against Rs. 6.4 billion as at end June, 2006. The overall size of financial sector
Pakistan has grown by 15 % and it was noted as 6.9 trillion in the 1st half of 2007
as compared to Rs. 5.96 trillion in the full year of 2006. Islamic banking assets
are currently holding 837 billion of total banking assets but its growth has been
recorded as 12.8 % at the end of December 2012.

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8.11.3 Socio-cultural Environment:
There are mainly five ethnic groups in
Pakistan - Punjabi, Sindhi, Pashto, Muhajirs and Baloch. Languages are the
most common identity of ethnicity in Pakistan. There are more than twenty-five
languages that are spoken in Pakistan, but the most common languages are
Punjabi, Sindhi, Urdu, Pashto and Balochi. Urdu is the official language and is
spoken and read all over Pakistan. English is the medium of education in most of
the schools and universities; therefore, it is an effectively national language of
Pakistan.

The society of Pakistan is greatly influenced by the cultures of Central Asia, India
and the Middle East. Pakistan has a rich civilizing and traditional background
going back to Indus valley civilization. The region of Pakistan has been invaded
in the past, occupied and settled by many different people, including Dravidians,
Aryans, Greeks, White Huns, Persians, Arabs, Turks, Mongols and various
Eurasian groups. And indeed, the region has formed a distinct cultural unit within
the main cultural complex of South Asia from prehistoric times. There are
differences in culture among the different ethnic groups in matters such as dress,
food, and religion, especially where pre-Islamic customs differ from Islamic
practices. The cultural origins come from the civilizations of North India and
eastern Afghanistan, with significant influences from Persia, Turkistan and
Hellenistic Greece. However, it was the first part of the subcontinent to receive
the full impact of Islam. Hence it has developed an identity of its own.

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8.11.4 Technology
Technology is a common word used nowadays referring to
methods and techniques for facilitating the work of different people. Technology
is important in almost every field of life from e-shopping to e-banking. Information
technology is now the backbone of the growth of every country.

Pakistan government has launched its technology policy in the year 2000 to keep
pace with the fast-moving world. Many companies in Pakistan are now relying on
different technologies, mainly IT for improving their work standards and to satisfy
their customers. For example, before the use of IT, Pakistan banking sector was
very slow but almost every bank is using different technologies to satisfy their
customers now. One important thing in the technology development is the
technology acceptance, how employees and customers react emotionally to the
acceptance of the new technology. (Wajeeh 2008) In Pakistan, branchless
banking is becoming very common and showing tremendous growth. Banks are
introducing new techniques to facilitate their clients. Internet banking, mobile
banking, ATM’s are some examples. But still banking in Pakistan is being
conducted through branches using papers and forms mainly. (Asad 2007)

Online banking was the first step towards the use of technology in banking. Now
people can do transactions through their mobile phones. People can pay their
utility bills through the simple method from their mobile phones. The chances of
bank robberies would go down automatically and bank customers would be more
secure and safe in making banking transactions. It not only saved cost but also
provide convenience for the customers as they are now able to carry out
transactions from their place without travelling to the adjacent bank branch.
(Husain 2006)

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8.12 FUTURE PROSPECTS OF DIBPL

DIBPL remains committed
to the interest of all stakeholders, including its employees, owners, regulators
and Pakistani nation. DIBPL has defined strategy on where and how want to
proceed in the years to come. With the implementation of the new ‘Core Banking
Package’, DIBPL will completely automate its functions which in turn will
appreciably enhance work efficiency. DIBPL will continue to diversify customer
segments thereby increasing product offering. DIBPL committed towards the
employee’s empowerment / development will continue DIBPL believe that a
motivated and well-trained workforce is necessary to ensure sustenance and
growth. On the business side its main focus would be to reduce non-performing
loans and increase deposits.

DIBPL remain committed to its Vision, Mission & core values and its strategy for
the future includes recovery efforts and revival of non-performing loans, deposit
mobilization, consolidation of loans, expense management and tapping into
untapped markets by increasing our network both domestically and
internationally. Customer service will remain its main focus of Operations
management.

Finally, DIBPL extend its appreciation to the bank’s staff for their commitment,
dedication and hard work in achieving these excellent results. DIBPL would like
to express its sincere reverence to the Board members whose valuable guidance
has always enlightened in decision making. Finally, DIBPL would like to express
its appreciation to stakeholders, regulators and its valued customers for their
support and continued confidence in DIBPL.

Page | 80
8.13 WEAKNESSES OF DIBP

Customer Satisfaction: 

In DIBPL customer dealing is well, but during rush

hour, the customer has to wait for a long time for their turn. It’s quite hard for a
new customer or potential customer to get the required information.

Poor record management and filing system:

During my internship I
observed that filing system of branch is not good. When certain record is needed
the staff has to struggle to find it out and a lot of time is wasted.

Unequal distribution of work:

 Work is not equally distributed. On one
hand some employee has to work all day without relaxing while some others
have nothing to do at all. This not only creates confusion among employees but
also hurting and disturbing for overall setup of the bank. And above all it results
in dissatisfaction among customers as well.

Difference between theory and practice: 

Difference exists between

theory and practice and DIBPL has written procedure but practical work done by
employees is a bit different from written procedures.

Bank duty to maintain secrecy:

They don’t care about maintaining secrecy, especially during the rush hours.
They speak loudly about the account position and while getting clearance of
cheque the person can easily get the whole information from the ledge. The
deposit clerk must be careful while passing any cheque. In this regard another
shortfall is in giving the information about the balance on the telephone.

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Excessive paperwork:
It is notified that due to the lengthy procedure of
paper work the bank employee is overburdened. They are unable to give proper
attention to the clients and face difficulties in getting their job done. One reason
for lengthy procedure and excessive paperwork in the bank is the lack of
computerized technology.

More accounts fewer deposits: 

Efficient banking is one, which does not
emphasize on number of accounts but on greater amount of deposits. DIBPL is
more interested in increasing its number of accounts irrespective to its deposit.

Delegation of authority:
 Manager has very limited authority; he has to take the
approval from his management authority i-e. In case of advance he has to take
the approval of general and regional manager. The other problem is created,
when the manager is not present in his office, the customer having to wait for
hours. This discourages both customer and officers because they have to suffer
a lot.

Lack of specialized training: 

DIBPL does not provide adequate facility of
specialized training to their staff. Training is generalized rather than specialized.
As the worker finishes his training, he is inducted into a specific field without
having a great deal of knowledge about the field.

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8.14 MY LEARNING - DURING THE INTERNSHIP

My experience with the bank was phenomenal and unforgettable at the same. I
loved it and enjoyed the best I could throughout the whole journey of learning
and knowledge. It felt as I have vividly expressed throughout my report as though
I was always part of a bigger commitment to serve and yet it boosted my
individuality to work with its team as well. I felt as though for a brief time period,
this technical breathing corporate system accepted me as family, allowed me on
its deepest systems and gave me the opportunity to walk on my own before I am
ready to face the big world myself. Thanking the bank simply just seems so less
for all this.
Nothing short of incredible is the way in which Bank Islamic Pakistan Limited
functions. The more I learned through my internship, the more I came to respect
it. Just as a living creature, the bank survives in the corporate world. I have
grown a somewhat thorough understanding of course about the working of the
bank and have presented my humble views, time and again where required, to
highlight further steps necessary in strengthening this magnificent organization.

Over to the end of my wonderful saga of learning and quest of knowledge I have
undoubtedly established evidently enough that Bank Islamic is a force to reckon
with in the understand has the best people working for it in the banking sector. Its
philosophy of service is truly evident in its sops and surely it compels out of every
mind.

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CHAPTER # 9

9.0 Conclusion and Recommendations

9.1 CONCLUSION
IBPL is an effectively operating and profit-making organization and
carrying out its activities under a specified system of procedure. The main
regulatory body is the State Bank of Pakistan, which provides policy guidelines
and ensures that the money market operates on sound professional basis. While
the head office specifies the whole procedure of function and operations. This
procedure has been modernized with the passage of time with a view to
streamline the approach and underlying procedure for effective overhauling of its
own capabilities so as to bring them at par with international practices.

There are people who are motivated towards their work but on the whole, it
seems like employees do not work on time and enjoys wasting their time, which
is a big hurdle in its way to progress. Also working at the bank, I also found out
that all the departments are not linked together. Employees usually hide their
work from other employees as its match going on and whoever does the best
would be awarded. That should not be the case. All the departments should work
as a team not as individuals, so that the whole branch would get benefit out of it.
So, there is a lack of teamwork, also due to this weakness of the branch, its
customers are not satisfied. I talked to many clients of the bank but most of them
were not satisfied with the services provided, especially in the departments
namely Account department, Cash department and Bill collection section. So, I
would suggest to the employees to work whole- heartedly and show keen interest
in their work.

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84

9.2 RECOMMENDATIONS 

Here I am giving some suggestions, which in my view

can add some input for efficiency and better performance of DIBPL as an
organization.

The recommendations are as follows:

  In my opinion the process of a transaction should be short in order to save time
for both customers and the bank.
Staff strength should be enhanced and professional qualified persons should be
recruited.

It is recommended that proper training be provided to the staff members that will
 

ultimately increase the performance of Bank over all.

It is suggested that promotion be given to the staff in due time and on the basis
of performance to provide job satisfaction.

The bank should spend more on renovation of the branches to improve

environment and atmosphere to attract the customers.

Sitting arrangement, air conditioning and new furniture should be facilitated.

The Bank should introduce the computers software to cope with the heavy load
of work and better control.

Extra counters should be established in order to facilitate during the rush days
 

the difficulties faced by the bank staff as well as the customers.

All Branches of the Bank must be online.

All the departments should be established separately.

Bank can increase its profit ratio by reducing extra expenditures and to enhance
 

the volume of advanced especially retail loans.

I done internship, I recommend that security level in the bank should be

enhanced especially where I got an internship and operation of Mobile phones
must not be allowed inside the Bank.

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Bank should take steps to establish separate counters for the old age employees
and pensioners.

Bank should take steps to establish separate counters for the old age employees
and pensioners.

The Bank should increase profit rate on deposits and saving schemes especially
 

for pensioners and old age citizens.

For improvement of internal control and system compliance wing and surprise
inspection system should work more effectively.
To avoid complaints and leaving the bank job number of staff should be
enhanced and their salaries should be leveled to the private/multinational banks.

Double shift system should be introduced to improve attitude and behavior of the
employees.

Payment of salaries should be made separately to accommodate the valued

customers and depositors.

For collection of utility bills i.e. Electricity bills, Telephone bills, Water and Gas
 

bills separate cash receipt counter must be established.

Procedure of receiving loans should be easy and short time to facilitate the
 

borrowers and enhance the profitability of the Bank.

Page | 86

CHAPTER # 10

10.0 Bibliography

Irshad, M. (2007). Money Banking and Finance, Nayyar Asad Printers.

Siddiqui, A. H. (1998). Practice and law of Banking in Pakistan (2nd Ed), Karachi

Decent Print Enterprises.
Van Horne, J.C and J.M Wachowicz, JR.11th Edition, “Fundamental of Financial
Management” New Jersey: Prentice-Hall, Inc.1998.

Management Brief, January 2008 published by Human Resources Management

and administration Group, Dubai Islamic Bank Pakistan Ltd. Head Office Karachi.

Brochure- DIBPL Awards & Achievements.

Financial Review of Banking Sector by State Bank of Pakistan

Interviews of Bank staff of DIBPL

Page | 87

10.1 REFERENCES

www.dibpl.com.pk
www.dibpl.com.pk/An_Report.htm

www.sbp.org.pk

www.askarebank.com.pk
www.mcb.com.pk

www.bankalfalah.com

www.hbl.com.pk

www.ubl.com.pk

www.abl..com.pk

www.dailytimes.com.pk

Page | 88