INDEPENDENT UNIVERSITY, BANGLADESH (IUB)

BBA-499A (Internship)

Summer-2019

Working report on Al – Arafah Islami Bank Limited

Submitted to:

Ms.Zakia Binte Jamal

Lecturer, Department of Marketing

School of Business

Submitted by:

TANIA

ID: 1530359

Date of Submission: 24th JULY 2019

 Letter of Transmittal
th
24 July,2019

Ms.Zakia Binte Jamal

Lecturer,

School of Business,

Independent University, Bangladesh

Subject: Submission of Internship Report.

Dear Maam,

With due honor and respect I am pleased to submit my internship report on Al – Arafah Islami
Bank Ltd. According to the instructions given by you. I have prepared this report with full
determination and sincerity to make it a success. Throughout my working with AIBL I have
discovered and gained a lot new and practical knowledge. By using my experience, skill and
knowledge which I acquired at the time of working at AIBL, I have prepared the report.

In writing and comparison, I earnestly tried to keep it simple and reader-friendly for you and
others who may feel interested to go through it. Besides, I have also included graphs with
markers for a better visualization of the trend profitability of the bank. Moreover I will be
pleased to clarify and answer any questions regarding possible discrepancies or inconsistencies
that may have been presented itself in the paper.

Thanking You,

Yours sincerely,

TANIA

Id: 1530359

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 Acknowledgement

At the very beginning, I would like to express my gratitude to God for whose kindness and
blessings I have successfully completed my three months long internship at Al Arafah Islami
Bank. Then I must express my deep gratitude to my University supervisor Ms. Zakia Binte
Jamal for his guidance and instructions in conducting the internship program successfully.

I would like to thanks Al Arafah Islami Bank for giving me opportunity to work as internee at
their company, and I would also especially like to thanks to my supervisor of Al Arafah Islami
Bank K M Shameem A Satter who helped me a lot during my internship days with valuable
advices, guidance and necessary information and all the officers and staff for their kind
cooperation in explaining the function of the bank and for helping me to complete the report in a
shorter form.

Finally I would like to give thanks to my well wishers.

Thank you.

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 Table of Contents

Letter of Transmittal..................................................................................................ii
Acknowledgement....................................................................................................iii
Table of Contents......................................................................................................iv
List of Figures............................................................................................................vi
Executive Summery..................................................................................................vii
Chapter-1...................................................................................................................1
Introduction...............................................................................................................2
1.1Company Profile:...............................................................................................2
1.1.1 Vision, Mission, Objective etc....................................................................4
1.1.2 Corporate Division / Department etc........................................................6
1.1.3 Details of the Product lines and Services...................................................6
1.1.4 Operations Details:.....................................................................................8
1.1.5 Philanthropic Activities / CSR:....................................................................9
Chapter-2.................................................................................................................11
Internship experience / Observation details...........................................................12
2.1 Job responsibilities.........................................................................................12
2.2 Functions of the department.........................................................................13
Chapter-3.................................................................................................................16
3.1 Problems / Challenges faced / Identified in the workplace\ Identified in the
workplace................................................................................................................17
3.2Analyze the issue based on relevant theory......................................................17

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 Gap 1 – The listening gap.....................................................................................18
Gap 4 – The communication gap.........................................................................19
3.3 Recommendation..............................................................................................21
Chapter-4.................................................................................................................22
4.1 Conclusion and Implication...............................................................................23
Chapter-5.................................................................................................................24
References...............................................................................................................25

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 List of Figures

Chapter Part Page No

1 Figure 1: Organization structure of AIBL 8
3 Figure 2: The Provider Gap – 1 18
3 Figure 3: The Provider Gap – 4 19

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 Executive Summery

The report is based on the experience which I have gained by working at Al Arafah Islami Bank
Ltd. An internship program is a golden chance for a student to apply the theoretical knowledge
into real life experience. So I got the opportunity to work in AIBL and have gained practical
knowledge about the workplace and the problem customers are facing day by day.

The report is mainly divided into three chapter. First chapter contains all the details about the
organization. I tried my best to include all the necessary information about Al Arafah Islami
Bank Limited. The company profile, their mission, vision, products & services, social
responsibilities included in first chapter. Chapter two is about job responsibilities. I included all
my job responsibilities in chapter two. As an intern I gave my best effort to perform my job
responsibilities in Al Arafah Islami Bank Limited, Uttara Model Town Branch. Third chapter is
about the problems faced in the workplace and recommendation for the bank. I have listed all the
problem I identified in the bank and analyze the most important problem and listed some
recommendation that AIBL can apply for the betterment of the bank.

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Chapter-1

8
 Introduction

Banking sector is one of the most profitable sectors in Bangladesh. The sector continuously
contributes to countries GDP and overall development activities. Al Arafah Islami Bank Limited
is one of them, who operates its banking activities based on Islamic Shariah. Al Arafah Islami
Bank Limited is the preferred choice in banking for friendly and personalized services, cutting
edge technology, tailored solutions for business needs, global reach in trade and commerce and
Islamic Shariah yield on investments, assuring Excellence in Banking Services.

1.1Company Profile:

Al Arafah Islami Bank is the first Bangladesh – commercial bank incorporated on June 18, 1995
under the companies Act 1994. With the permission of Bangladesh Bank, it commenced its
commercial banking operation on June 3, 1996 with a vision to stand out as a pioneer banking
institution in Bangladesh. Al Arafah Islami Bank Ltd is a second generation bank. Al Arafah
Islami Bank was officially initiated on 27th September, 2005.

Al Arafah Islami Bank Ltd was founded not only to earn profit and to develop economy of the
country. The bank is a Sharia bank which is following Islamic law while performing banking
activities. The authorized capital of Al Arafah Islami bank is Tk.15000.00 million and the paid-
up capital is Tk. 9,943.06 million as on 31st December
2017. Renowned Islamic Scholars and pious
businessmen of the country are the sponsors of the bank. 100% of paid up capital is being owned
by indigenous shareholders. It operates its banking activities with 30,386 shareholders as on 31
December 2017. The equity of the bank was Tk. 20,676,632,231 as on 31 December 2017. Al-
Arafah Islami Bank Ltd. has 154 branches and a total of 3,446 employees.

The Bank conducts its business on the principles of Musaraka, Bai-muazzal, and hire purchase
transactions approved by Bangladesh Bank. Naturally, its modes and operations are substantially

9
different from those of other conventional commercial Bank. There is a Shariah council in the
Banks who maintains constant vigilance to ensure that the activates of the bank are being
conducted on the precepts of Islam. The Shariah council consists of prominent Ulema, reputed,
Bankers, renowned lawyers and eminent Economist.

AI-Arafah Islami Bank Ltd is basically managed by its Board of Directors consisting of 21
members.

Board of Directors

Name Designation
Alhajj Abdus Samad Chairman
Alhajj Abdus Salam Vice Chairman
Hafez Alhajj Md. EnayetUllah Chairman, Executive Committee
Alhajj Salim Rahman Vice Chairman, Executive Committee
Alhajj Md. Liakat Ali Chowdhury Chairman, Risk Management Committee
Janab Md. Amir Uddin PPM Independent Director & Chairman, Board
Audit Committee
Alhajj Nazmul Ahsan Khaled Director
Alhajj Abdul MakekMollah Director
Alhajj Md. Harun-ar-Rashid Khan Director
Alhajj Md. Anowar Hossain Director
Alhajj Badiur Rahman Director
Alhajj Engr. Kh. Mesbahuddin Ahmed Director
A hajj Shameful Hague Director
Alhajj Abu Naser Mohammad Yeahea Director
Alhajj Niaz Ahmed Director
Alhajj Mohammed Emadur Rahman Director
Dr. Md. ShafiulHaider Chowdhury Alternative Director of AlhajjBadshaMeah
Alhajj Anwar Hossain Alternative Director of Alhajj Mohammed
Haroon
Janab Khalid Rahim Independent Director
Jb. M. Kamaluddin Chowdhury Independent Director
Farman R Chowdhury Managing Director

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1.1.1 Vision, Mission, Objective etc.

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

Mission:

 Achieving the satisfaction of Almighty Allah here and hereafter.

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

Objectives:

The objectives of AIBL are not only to earn profit, but also to do good and welfare to the people.
The main objectives of AIBL are listed below:

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  To promote, foster and develop the application of Islamic principles, law and tradition to
the transaction of financial, banking and related business affairs.
 To establish participatory banking instead of banking on debtor creditor relationship.
 To offer contemporary financial services in conformity with Islamic Shariah.
 To contribute towards economic development and prosperity within the principles of
Islamic justice.
 To introduce a well fare oriented banking system and also to establish equity.
 To facilitate efficient allocation of resources.
 To help achieving stability in the economy.

Commitments:

 To keep their position as a leading Islami bank in Bangladesh by being customer

focused modern Islamic Bank with sound and steady growth in both mobilizing
deposit and making quality Investment.
 To deliver financial services with the touch of their heart to retail, small and
medium scale enterprises, as well as corporate clients through the branches across
the country.
 To match the changing trade & industrial needs of the clients.

1.1.2 Corporate Division / Department etc.

 General Banking Division

 Investment Division
 Foreign Exchange Division
 Audit Division

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  Human Resources Division
 Financial Administration Division
 Establishment and Common Services Division

1.1.3 Details of the Product lines and Services.

Deposit Products that are AIBL currently offering are given below:

 Al Wadiah Current Deposit (CD)

 Mudaraba saving deposit (MSD)

 Monthly Installment based Term deposit (ITD)

 Mudaraba term deposit (MTDR)

 Mudaraba short notice deposit (SND)

 Monthly profit based term deposit (PTD)

 Al-Ararah monthly Hajj deposit (MHD)

 Al-Arafah termed hajj deposit (THD)

 Farmers, Freedom fighters
 Foreign currency deposit (FCD)
 Pension deposit scheme (PDS)
 Cash WAQF Deposit Scheme(CWD)
 Mudaraba Lakhpoti deposit scheme (LDS)
 Mudaraba kotipoti deposit scheme (MKDS)
 Mudaraba Millionaire deposit scheme (MDS)
 Al – Arafah Savings Bond(ASB)

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AIBL investment products:

 Investment in Agricultural sector

 Investment in Business sector
 Investment in Industrial sector
 Investment in Foreign Trade
 Investment in Construction and Housing
 Village and Small investment scheme
 Investment in Transportation sector
 Investment schemes in Masque and Madrasa
 Small Enterprise investment schemes
 Consumer investment schemes

Micro, Small & Medium Enterprises (MSME) Banking

 Al -Arafah UDDOG
 Al -Arafah UTHSOB
 Al -Arafah UNNAYAN
 Al -Arafah PUNJI
 Al -Arafah SONIRBHAR
 Al -Arafah KHAMERBARI
 Al -Arafah SOLAR ENERGY

1.1.4 Operations Details:

Organization structure of AIBL is given below:

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B
h
C
m
g
M
y
D
V
F
d
p
lP
u
S
x
E
o
v
n
T
sta
ficerA
O
Figure1: Organization structure of AIBL.

1.1.5 Philanthropic Activities / CSR:

CSR is an integral part of a corporate culture and ethics. Every institution has responded
positively in every sphere of social activities. Al- Arafah Islami Bank is very active to

15
social activities. AIBL is doing social activities in different areas through their CSR
activities.

The bank has been giving various facilities to their customer to enhance social service as
part of corporate social responsibility. The bank has provided a special service to farmers
& freedom fighters to open savings accounts with special facilities of giving profit on
daily balance without any account maintenance fee. During the year 2017, they
accomplished different social activities which include allocation of fund Tk. 157.40
million. They also donated for flood victims to the honorable Prime Minister’s fund and
blankets to help cold effected people. The bank also donated an Ambulance to Kurmitola
High School.

Al - Arafah Islami Bank Foundation:

The bank has a Foundation for launching philanthropic activities. The foundation
manages all the social activities done by AIBL. Al-Arafah Islamic International School &
College and Al-Arafah Islami Bank Library are major two wings for launching
philanthropic activities.

Al - Arafah Islamic International School and College:

Al-Arafah Islamic International School & College has been established at Dhanmondi by
the Al-Arafah Bank Foundation in 1998. The institution was established with a motive to
build peace and equality of Islam to next generation and to establish banking and other
aspects of life in the way of Islam. The institution has class level up to O level for the
first time in Bangladesh.
Al – Arafah Islami Bank Library:

AIBL can also contribute significantly in the field of providing good source of
knowledge, thus strengthening its social development. Al-Arafah Islami Bank has

16
established a public library at 32, Topkhana Road, Chittagong Bhaban (1st floor), Dhaka
in 2000. The library has 23,000 books of reference for the researchers, students,
professionals, bankers, physicians, engineers, politicians, writers or journalists, even for
the kids. It has some exceptional collection of books on religion, economics, banking,
computer science, business administration, sociology, English & Arabic language and
juvenile literature in Bangla, English, Urdu & Arabic, which are very rare.

17
 Chapter-2

Internship experience / Observation details

2.1 Job responsibilities

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On the 20th May, 2019, I started my work at Al Arafah Islami Bank in General banking division.
In my internship period I have gained a lot of experience about working environment and knowledge
about banking activities.

 In the account opening section, my work was to collect all the necessary
documents like two copy passport size photo of both account holder and
nominee and photocopy of National ID card/Passport/Birth Certificate whenever
a customer opens an account. It was my main work in General Banking Division.
 Finding file and cheque from the almirah according to the account number and
cheque number was my second work.
 I used to go to second manager, authorized officer for the signature to verify and
approve in the different documents, cheques, application form and different
slips.
 I used to write serial number on the front page of cheque book and then keep
those at almirah serially.
 I used to help customers to write cheques, deposit books for them.

2.2 Functions of the department

General Banking

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General Banking department do all the primary activities which are important for banking
operation. The department provides day to day services to the customers. The general banking
service includes:

1. Customer Service: Customer service section is one of the most important sections in
the banking activities. Banker Customer Relationship builds through this section.
This department maintains all the customer needs which customer expect from the
bank. This section provides below services:

 Account Opening
 Account Closing
 Issuance of Cheque Book
 Account to account fund transfer
 Operation of clearing house

2. Cash Department: Cash section is the most sensitive part of the bank. This section
maintains all kind of transaction in cash. It receives deposits from the depositors in
the form of cash and it makes payment against valid cheque. Cash section also
maintains cash related register book such as cash receipt/payment register and cash
balance book. This section maintains daily and monthly cash balance.

3. Accounts Department: There are two sections incorporate with Accounts

Department. One is General Accounting section maintains all the cost of everyday’s
activities. This section maintains all the financial statement and unadjusted/balanced
trial adjust. Another one is Investment Accounting section which resolve all the
problems of irregular investment Accounts.

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Investment /Loan and Credit Division

• Client selection of loan disbursement

• Proposal sent to head office for approval of loan

• Loan disbursement after Sanction of loan

• Recovery of loan

International Division: International Division is an important section of any bank. Foreign

trade activities of the bank are conducted by the international division. This section maintains all
the remittance arrangements and try their all the best to bring the wage earners remittance from
the Bangladeshi people in abroad.

Audit Division: This division operates by the head office and responsible for the audit and
inspection of the bank to ensure whether the performance of the bank is stable or improving.

Human Resources Division: This division is situated at the head office. This division deals with
recruitment & selection, training, posting, promotion process of the bank and responsible for
salary of employees.

Financial Administration Division: This division plays a vital role of the bank. It deals with
keeping all the books and accounts of the bank safe and securely.

Establishment and Common Services Division: This division does the other activities like
engineering works, development works for the bank.

Marketing:

The job of marketing section can be divided into two broad categories:

21
Marketing to existing clients: Monthly update is kept on the exposure of the good existing
client. If the issue gets low for a valuable client then visits are made by the bank executives to
make inquiry on their requirement for finance. Also, continuous effort is made to increase
exposure on any client who has good prospect as a result of a BMRE or some other reason.

Marketing to non-existing clients: From the market information non-existing prospects are also
identified and sought after. Visits are made to meet the CEO or whoever is the concerned person
regarding financing matters and the advantages of taking finance from AIBL is highlighted.
AIBL also distribute desk calendar, telephone index, and slip pad to prospective clients.
Advertisements are given in various journals of professional bodies.

22
Chapter-3

23
3.1 Problems / Challenges faced / Identified in the
workplace\ Identified in the workplace

While working general banking department at Al Arafah Islami Bank, Model Town Uttara
branch. I have attained to a newer kind of experience. Those are given below:

 Listening, Communication gaps between customers and employees.

 Lengthy decision making process.
 Rude behavior with customers.
 Delay to provide services to customers.
 Poor Marketing strategy.
 Discrimination among customers.
 Lack of maintenance of equipments like AC, Computers etc.

3.2Analyze the issue based on relevant theory

This report will be based on Listening and Communication Gaps between customers and
employees. Those gaps are comes from The Provider Gaps. The provider gaps is to close the all
important customer gap, the gaps model suggest that four other gaps. The following four
provider gaps:

Gap 1: The listening gap

Gap 2: The service design and standards gap

Gap 3: The service performance gap

Gap 4: The communication gap

So, I have to discuss:

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 Gap 1: The listening gap and,

Gap 2: The communication gap.

Gap 1 – The listening gap

Figure 2: The provider gap - 1

The listening gap, is the difference between customer expectations of the service and company
understanding of those expectations. For this gap, the primary reason is the employee doesn’t
understand their customers’ expectations. Al Arafah Islami Bank also doesn’t understand their
customers’ expectations. Because, there is no information desk for their customers. It is the main
reason customers are not get adequate information. And I think this a major problem of Al
Arafah Islami Bank Ltd. When customers are not get adequate information they feel disturbed.
Customers want to complain but company does not care. Ever organization has its own policies
and Al Arafah Islami Bank is not different form it, Al Arafah Islami Bank has its own policies.
Follow the instructions exactly from top management sometime it occurs here, because the entire
situation is not same every time and top management hardly knows about the entire trifles

25
situation. So the complains does not go to the top management system and the listening gap
occurs. So mostly it is highly related with the lack of upward communication from the listening
gap.

Al Arafah Islami Bank has not segmented the market properly. They are more focused on new
customers rather than old customers, not build up a strong relationship with their old customers.
So mostly it is highly related with the insufficient relationship focus.

Al Arafah Islami Bank Ltd does not customers and market research, has no proper communicate
with customers, employees and management. Al Arafah Islami Bank Ltd should carry out a
thorough customers and market research which is focused on service quality. Al Arafah Islami
Bank should communicate with employees and customers and also management and employees.
So mostly it is related with the inadequate customer research orientation.

Gap 4 – The communication gap

Figure 3: The provider gap - 4

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The communication gap, illustrates the difference between service deliver and the service
providers external communications. Promises made by a service company through its media
advertising, sales force, and other communications may raise customer expectations, the
standards against which customers assess service quality. The discrepancy between actual and
promised services, therefore, can widen the customer gap. Broken promises can occur for many
reasons such as overpromising in advertising or personal selling, inadequate coordination
between operations and marketing, and differences in policies and procedures across service
outlets. Al Arafah Islami Bank has some communication gaps with their customers. Such as
AIBL has no enough advertising or online marketing. AIBL also sometimes overpromising with
their customers and they can’t raise their customers’ expectations.

The integrated service marketing communication was so easy but now a day the integrated
service marketing is getting more complicated. Today to promote a company or any product
company needs to do more promotional activities in social sites along with television and ratio.
And the bank is not so active to their promotional activities. They usually do not publish any
promotional video or any activities in the social sites. Because of this customer has not any idea
or any information about the bank and their services. So mostly it is related lack of integrated
service marketing communications.

Al Arafah Islami Bank are promising to their customers to give them interest rate same for
everyone but they can’t provide same interest rate for every customer. Sometimes depends on
customer’s amount. So mostly it is related of overpromising.

At the present time customers are more interest to take their own services. Al Arafah Islami
Bank has providing those types of services if they teach their customers, than bank will not help
again and again their customers for these kinds of services. So mostly it is related of ineffective
management of customer expectations.

For example: Bank can use digital TV screen, where they can teach how to fill up account
opening form.

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3.3 Recommendation

The recommendation given below are not decisions, rather they are only suggestions to improve
their customers service in order to fulfill the customers satisfaction so that customers give more
preference to Al Arafah Islami Bank Ltd. The recommendations are given below:

 Bank should introduce a ‘Marketing Department’.

 Bank should develop effective marketing strategy to attract new customers.
 Bank should develop personal relationship with the customers.
 Bank needs systematical process in cash counter to give their customers well and fast
services.
 Increase the number of ATM booth.
 Increase number of online service for corporate clients.
 Bank should always monitor the performance of its competitors.
 Bank should give proper training to their employee before transferring them to any new
division.
 All the branches should be computerized.
 More research and innovative ideas should be made.
 Bank should be more proactive to listen and should put more attention to the customer’s
problem and for their help.

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Chapter-4

29
4.1 Conclusion and Implication

In the report I have tried my best to give a clear idea about the activities, functions and problems
of AIBL. Al-Arafah Islami Bank is now functioning efficiently, smoothly and satisfactorily
despite facing various internal and external threats. The bank started their journey in 1995 with
the principles of Islami Shariah and introduced a modern banking system based on AL-Quran
and Sunnah. AIBL is serving so many products and services. Day by day the bank is moving
towards a highly satisfactory level with its business operations. After analyzing the problems of
Al- Arafah Islami Bank Ltd, it is showing that communication gap is creating a big obstacle of
AIBL performance. Most of the people are not informed about the products & services of Al-
Arafah Islami Bank. They should give more focus on their overall integrated marketing strategy
and would operate its business as a leading islami bank in Bangladesh.

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Chapter-5

31
 References

AIBL Profile. (n.d.). Retrieved from AIBL: https://www.al-

arafahbank.com/profile.php Retrieved From: https://www.al-arafahbank.com/i-
banking-at-a-glance.php

Masum, B. A. (2019). LOAN DISBURSEMENT AND LOAN RECOVERY OF AL-

ARAFAH ISLAMI BANK LTD. Retrieved From:
https://www.lawyersnjurists.com/article/loan-disbursement-and-loan-recovery-of-
al-arafah-islami-bank-ltd/

Mir, A. J. (2010). The provider gap. Retrieved from

https://asifjmir.wordpress.com/2010/01/09/the-provider-gaps/ Retrieved From:
https://asifjmir.wordpress.com/2010/01/09/the-provider-gaps/

Newsge. (2018). Al-Arafah Bank director sued for money laundering .Retrieved
From: http://www.newagebd.net/article/44584/al-arafah-bank-director-sued-for-
money-laundering

Valarie A Zeithaml, M. J. (2013). Service Marketing . McGraw Hill Education

( India ) Private Limited.

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

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