Internship Report On General Banking Sys

Internship Report on
“General Banking system of Al-Arafah Islami Bank Ltd.”
Prepared by
MUHAMMAD EUNUS AMIR
ID # 111-0157-431
Department of Business Administration
Atish Dipankar University

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of Science and Technology (ADUST)
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Internship Report on
General Banking system of
Submitted to
Nadeem Akter
Lecturer
Submitted by
Muhammad Eunus Amir
ID # 111-0157-431
Atish Dipankar University

of Science and Technology (ADUST)
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DECLARATION BY THE STUDENT
I hereby declare that the Internship Report on “General Banking system of Al-Arafah Islami Bank
Ltd.” is my original work that has been prepared for earning the degree of Bachelor of Business
Administration and has not previously been submitted to any other authority for earning any other
degree, diploma, or fellowship in any other discipline.
The entire work has been planned and carried out by me under the supervision of Mr. Nadeem Akter,
Lecturer, Department of Business Administration, Atish Dipankar University of Science & Technology
(ADUST), Dhaka, Bangladesh.
_______________________
Muhammad Eunus Amir
ID No. 111-0157-431
Major in Human Resource Management
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Atish Dipankar University of Science & Technology (ADUST)
We, the Board of Examiners certify that we have read the Internship Report on “General Banking
system of Al-Arafah Islami Bank Ltd.” prepared by Muhammad Eunus Amir (ID No. 111-0157-
431) of Department of Business Administration and recommend the said internship report for
acceptance to Atish Dipankar University of Science & Technology (ADUST) as the partial fulfillment
of the degree of Bachelor of Business Administration.
1. Member : ___________________________
Full Name : Shahreer Alam
Designation : Assistant Professor & Co-Ordinator, Department of Business
Administration
2. Member : ___________________________
Full Name : Nadeem Akter
Designation : Lecturer, Department of Business Administration.
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Date of Approval : May, 2015
CERTIFICATE
This is to certify that the internship report on “General Banking system of Al-Arafah Islami Bank
Ltd.” is prepared by Muhammad Eunus Amir (ID No. 111-0157-431) of BBA Program as a partial
requirement of the degree of Bachelor of Business Administration.
The whole work of this internship report has been planned and carried out by this student under
supervision and guidance of the faculty member(s) of Atish Dipankar University of Science &
Technology (ADUST), Dhaka, Bangladesh.
_____________________
Shahreer Alam
Assistant Professor & Co-Ordinator
Department of Business Administration.
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ACKNOWLEDGEMENT
At the very beginning, I would like to express my deepest gratitude to the god for giving me the ability
and the strength to finish the report successfully within the scheduled time.
I am deeply obliged and respectful to my internship instructor Nadeem Akter for his whole-hearted
supervision during my internship program. His advices, suggestions and support were really a great
source of spirit to make the report a good one.
My earnest gratitude goes to Manager of Al-Arafah Islami Bank Limited, Manda, Dhaka Branch Mr.
Md. Nazmul Huda, and all officers of Al-Arafah Islami Bank Limited, Manda, Dhaka Branch for
giving me valuable advice, and helped me with all kinds of necessary information to complete the report
and make it rich with supportive information. .
Lastly, I would like to give many special thanks and inexpressible greets to my faculties, and other
officials of the University for giving me good advice, suggestions, inspiration, support and help.
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LETTER OF TRANSMITTAL
May, 2015
Nadeem Akter
Lecturer
Atish Dipankar University of Science & Technology (ADUST)
Subject: Submission of Internship Proposal.
Dear Sir,
This is my great pleasure to submit the internship report proposal on “General Banking system of Al-
Arafah Islami Bank Ltd.” as a requirement of internship program.
In this report I will be emphasizing on the practical experience by working in a bank and linking the
theoretical knowledge with its application in the real life situation. The report will suggest ways and
means to improve the current practices. This study, under your able and constant guidance, would
enable me to gain new insights about how a research work is carried out and to apply my theoretical
knowledge acquired in the class rooms of ADUST to the practical field.
I shall be happy to provide with any supplementary information and clarification that might require.
Yours Sincerely,
----------------------------------------
MUHAMMAD EUNUS AMIR
ID: 111-0157-431
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EXECUTIVE SUMMERY
Aim:
The objectives of my study is to know the banking practices and general banking functions done
under Al –Arafah Islamic bank Ltd and about what level the customers are assured by
competence, courtesy, credibility and security by the bank and its employees
Methods:
During my study, I used different techniques; i.e. face to face interview, deskwork in different
departments and the structured questionnaire to assessing the customer satisfaction of Al –
Arafah Islamic bank Ltd (Manda Branch).
Conclusion:
The data that obtained from the survey was than analyzed and interpreted by using statistical
tools. From the interpretation of survey result, a number of findings and recommendations were
suggested that may help the organization to take necessary steps to improve their service and get
more satisfied customers.
Significance:
This has kind of research are rarely done before, hence research on the functions of the Al-
Arafah Islami Bank will help provide access and insight into how Al-Arafah Islami Bank
functions and operate within this country and pave the way for future researchers in this field.
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TABLE OF CONTENTS
Serial Chapter Headline Page
No. No.
01 Introduction 10
02 Problem Statement 13
03 Purpose of the Study 13
04 Limitations 14
05 Literature Review 15
06 General Banking Functions 19
07 Type of Services 26
08 Methodology 30
09 Recommendations 35
10 Conclusion 37
11 Reference 38
12 Results and Discussion 40
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Introduction
Al –Arafah Islamic bank Ltd was established as a private limited company on 18 June 1995. The
inaugural ceremony took place on 27 September 1995. High quality customer service through the
integration of modern technology and new products is the tool of the bank to achieve success. The bank
has a diverse array of carefully tailored products and services to satisfy customer needs. Al –Arafah
Islamic bank Ltd is committed to contribute significantly to the national economy. It has made a
positive contribution towards the socio economic development of the country with 78 branches of which
21 is AD throughout the country. As SME has emerged as a thrust sector. Al –Arafah Islamic bank Ltd
also considers it important to extend and enhance finance for the same. Keeping this idea in the
forefront, the bank has prepared an integrated policies, methods and procedures for SME investment. As
a part of my under graduation program, I have completed my internship in a renowned financial
institution named ―Al –Arafah Islamic bank Ltd‖. Throughout the period of my internship, I had been
working in several departments. The report will reveal the background of the company, description of
the loans, findings and recommendations based on the experience gathered.
Mission
 Achieving the satisfaction of Almighty Allah both here & hereafter.
 Proliferation of Shariah Based Banking Practices.
 Quality financial services adopting the latest technology.
 Fast and efficient customer services.
 Maintaining high standard of business ethics.
 Balanced growth.
 Steady & competitive return on shareholders‘ equity.
 Innovation 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.
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 Involving more in Micro & SME financing.
Vision:
 To be a pioneer in Islami Banking in Bangladesh and contribute significantly to the growth of

the national economy.
 To improve Banker- Customer relationship through improving customer service.
 To develop new and innovate product/service through integration of technology and policy
and principle.
Commitments:
 Al –Arafah Islamic bank Ltd is a customer’s focused modern Islamic Banking making sound
and steady growth in both mobilizing deposit and making quality Investment to keep our
position as a leading Islamic bank in Bangladesh.
 To deliver financial services with the touch of our heart to retail, small and medium scale
enterprises, as well as corporation clients through our branches across the country.
 Al –Arafah Islamic bank Ltd business initiatives are designed to match the changing trade &
industrial needs of the clients.
AIBL’s Products and Services:

Al-Arafah Islami Bank Limited is providing many product and services to satisfy their customers. For
that reason, AIBL has made significant progress in all areas of its operations within a short period of
time, such as deposit mobilization, credit management, remittance handling and foreign exchange and
trade. AIBL offers variety of products and services to the customers which are picked up below:
a. General Banking:
 Current Account (CD)
 Saving A/C (MSD)
 STD (Short Term Deposit) A/C
 Fixed Deposit Account (FDR/MTDR)

 1 Months Fixed Deposit
 Foreign Currency A/C
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b. Foreign Exchange:
 Letter of Credit Issue
 Letter of Credit Advice
 Foreign Documentary Bill Purchase (FDBP)

 Foreign Documentary Bill Collection (FDBC)
 Bill of Negotiation
 Foreign Remittance
c. Services of the Bank:
 ATM Card Service
 Online Banking
 Lookers Service
d. Frequent Services of AIBL:
 Cash management
 Wire transfer
 Automated clearinghouse (ACH) transaction
 Bill presentment and payment
 Balance inquiry
 Funds transfer
 Downloading transaction information
 Loan applications
 Investment activity
 Other value-added services
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Problem statement
During collecting of information and data from AIBL & making report for this project I
got an assumption that the bank decision making process is very lengthy and sometimes it
creates problems, which is unexpected to the customers. In most of the cases Head Office
controls the decision making and it is centralized. The total number of employees in
comparison with needed is very short and that is hampering the daily operation of the
bank. There is also lack of proper explanation of records and document records keeping
system
Purpose of the Study
Objectives regarding this study are as follows:
 Understanding the environment, functions and management of AIBL.
 To learn banking more thoroughly
 To fulfill academic requirement
 To identify major strengths and weaknesses of AIBL in retail products in respect to

other banks.
 To recommend for the successful operation of the services offered by AIBL.
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Limitations
Objective of the practical orientation program is to have practical exposure for the student. Although
this research was carefully prepared, there are still some unavoidable limitations and shortcomings
listed below:
 The bank confidentially keeps the data.
 The data and information related with the topic was not easily available.
 Supply of more practical and contemporary data is another out coming.
 This suffers from a narrow data range for analysis.
 The data seems insufficient may be suffering from take of reliability to some extent.
 Communication gap between the related officials and me.
 There was some sort of differences between the data collected from different
sources of information of the same topic.
 Lack of Co-operation: As the bank officials are so much busy that it difficult for
them to co-operate with me, which is also a constraint for this report.
 In some cases officers were reluctant in supplying relevant information, which

hampers the authenticity of the report to a certain extent.
 Due to confidentiality of management, some shortcoming may be available in the

Paper. It could not properly disclosed because in some cases.
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Literature Review
The banking industry of Bangladesh is a mixed one comprising nationalized, private and foreign
commercial banks. Many efforts have been made to explain the performance of these banks.
Understanding the performance of banks requires knowledge about the profitability and the
relationships between variables like market size, bank‘s risk and bank‘s market size with profitability.
But today banking function has moved beyond that. This study is only a scratch on the surface of what
can be called a shift towards marketing approach. But it is inevitable that changes are occurring. Indeed,
the performance evaluation of commercial banks is especially important today because of the fierce
competition. Since marketing has always been recognized as crucial function in a company, banking
industry has fully used it for their own benefit. Usually marketing communications are associated with
the word‖ marketing‖, but this association is wrong. Marketing is more sophisticate science. It can be
virtually divided in two parts: marketing strategy and marketing mix (4P). Marketing strategy usually is
associated with segmentation, targeting and positioning. Marketing tactics usually are associated with
4P or product, price, promotion and place. In the context of marketing we should also mention
marketing research, marketing performance, consumer behavior, branding, etc. Anyway the main
elements are marketing strategy and marketing tactics.
Strategic Marketing - Segmentation & Positioning :
Increasing competition and diversity of service development in banking and financial services[s-not
needed] sector pressures the banks to become increasingly responsive to market considerations in terms
of segmentation, management and market strategies, internal and external infrastructure, their use of
information technology and their ability to innovate and differentiate (Zineldin, 1996). Both market
segmentation and positioning are vital issues in marketing theory and practice. Positioning is an attempt
to distinguish the bank from its competitors along real dimensions in order to be the most preferred bank
for a certain market segment or prospect (Zineldin, 1996). As theory, market segmentation is the
process of dividing a market into distinct groups of individuals or organizations, who share one or more
similar responses to some elements of the marketing mix. Market segmentation can lead to insights
about the basic process of consumer behavior. Market positioning also plays imperative role in market
strategy by analyzing the market to segment the customers‘ requirements based on competitive
advantages (Kotler, 1994;Zineldin, 1996). Therefore, effective positioning reflects how customer
perceives the products; factors make the customers satisfied and whether customers behave differently
with different factors while choosing a bank.
Gap of Perceived Service Quality And Post Purchase Behavior:
Studies on satisfaction of the customers in financial service sectors have been well known among the
academicians since the mid of 80s‘. Parasuraman et al. (1988) opened a new window of research in
service quality by establishing SERVQUAL model. Their model has been replicated in many countries
with multi-dimensional sectors, and found close to a big success. Since, customer satisfaction has close
relationship with customer retention especially in markets that highly competitive and saturated like
financial services(Lopez et al. 2007); it is necessary to continuously monitor changes in satisfaction
among different segments of customers. The most common interpretations reflect the notion that
satisfaction is a feeling which results from a process of evaluating what was received against that
expected, the purchase decision itself and the fulfillment of needs or want(Armstrong & Kotler, 1996;
Berkowitz et al.1999).
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Kotler (1999) also noted that‘s satisfaction is a function of perceived performance and expectations
which identifies feelings of a person resulting from comparing a product‘s perceived performance in
relation to his or her expectations. For most companies and businesses, obtaining feedback from
customers and clients is essential. It provides them with a glimpse into what they are doing right, what
they are doing wrong, as well as ways in which operations and relationships could be improved. But
obtaining and organizing this feedback in a way it can easily be sorted and delivered to the right people
within the company can often be challenging.
Service Quality Dimensions:
Since a conceptual model concerning perceived service quality was proposed by Parasuraman et al.
(1988), service quality dimensions have become an area of interest in marketing research (Bolton &
Drew, 1991b; Brown & Swartz, 1989; Carman, 1990;Cronin & Taylor, 1992, 1994; Parasuraman et al.,
1988, 1994; Teas, 1993, 1994; Zeithaml et al., 1996). One of the important issues related to service
quality is the dimensions of service quality, and the measurement tool, SERVQUAL developed by
Parasuraman et al.(1988) has been the starting point of the controversy in this area. Parasuraman et al.
(1988)identify five quality dimensions that link specific service characteristics to consumer expectations
of quality. These five basic dimensions are reliability, responsiveness, assurance, empathy, and
tangibles.
Reliability:
Reliability is defined as the ability to perform the promised service dependably and accurately
(Parasuraman et al., 1988). Reliability involves consistency of performance and dependability. It means
that the firm performs the service right first time. It also means that the firm honors its promises.
Specifically it involves accuracy in billing, keeping records correctly, and performing the service at the
designated time (Parasuraman, Zeithaml, & Berry, 1985).
Responsiveness:
Responsiveness is defined as the willingness to help customers and provide prompt service
(Parasuraman et al., 1988). It concerns the willingness or readiness of employees to provide services.
Responsiveness involves timeliness of service like posting a transaction slip immediately, returning a
phone call quickly, giving prompt service, and setting up appointments quickly. According to Zeithaml
et al. (1990), responsiveness refers to the motivation to help (internal) customers and provide prompt
service to them.
Assurance:
Parasuraman et al. (1988) defined assurance as the knowledge and courtesy of employees and their
ability to convey trust and confidence. Assurance involves trustworthiness, believability, honesty. It
involves having the customer‘s best interests at heart. Contributing to credibility includes company
name; company reputation; personal characteristics of the contact personnel; how much a hard sell is
employed in interactions with the customer (Parasuraman et al., 1985).
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Empathy:
According to Parasuraman et al. (1988), empathy is defined as caring and individualized attention
provided to customers. Empathy refers to graciousness, respect, consideration,and friendliness of
contact personnel including receptionists, telephone operators, etc.It includes consideration for the
consumers‘ property, clean and neat appearance of the contact personnel.
Tangibles:
Tangibles are the physical facilities, equipment, and appearance of personnel in services(Parasuraman et
al., 1988). It includes all the physical evidence of the service like the facilities, appearance of personnel,
tools or equipment used to provide the service, physical representations of the services (e.g. statements),
and even other customers. Tangibles of service are the tangible facets of the service facility (equipment,
signage, employee appearance, etc.) or the man-made physical environment, popularly known as the
―servicescapes‖ (Sureshchandar, Rajendran, & Anantharaman, 2003).
Customer Satisfaction is so important…
Customer satisfaction measures how well a company's products or services meet or exceed customer
expectations. These expectations often reflect many aspects of the company's business activities
including the actual product, service, company, and how the company operates in the global
environment. Customer satisfaction measures are an overall psychological evaluation that is based on
the customer's lifetime of product and service experience. "Effective marketing focuses on two
activities: retaining existing customers and adding new customers. Customer satisfaction measures are
critical to any product or service company because customer satisfaction is a strong predictor of
customer retention, customer loyalty and product repurchase.
Post Purchase Evaluation:
Post purchase is one the most popular approach That is used to both produce meaningful and useful
findings. Satisfaction feedback is obtained from the individual customer at the time of product or
service delivery (or shortly afterwards). This type of satisfaction survey is typically used as part of a
CRM (customer relationship management system) and focuses on having a long term relationship with
then individual customer.
Historical Banking Approach:
Historically, state of marketing in Bangladeshi banks was not satisfactory, but there is a rational
explanation of such a situation. Banks or any other financial institutions didn‘t only lack knowledge, but
also lacked the real incentive to make it happen. Since the money demanded was significantly lower
than the money supplied, there was no increased pressure to use sophisticated marketing methods.
Historical banking approaches were falling behind in the following areas-
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Customer orientation - signifies banks were lacking sufficient understanding of target buyers to be
able to create superior value for them continuously. Thus they didn‘t understand the customer‘s entire
value chain. It also develops through time and under the influence of internal and market trends
Competitor orientation - means that a the banks refused to look at the short-term strengths and
weaknesses and long term capabilities and strategies of both the key current and the key potential
competitors. Moreover, Survey shows that marketing and customer service functions were being
integrated –they considered customer services to be part of their marketing strategy as financial
institutions concentrate on customer retention during the economic downturn.
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General Banking Functions
A financial institution intermediary that mediates or stands between ultimate borrowers and ultimate
lenders is knows as banking financial institution. Banks perform this function in two ways- taking
deposits from various areas in different forms and lending that accumulated amount of money to the
potential investors in other different forms. General banking department aids in taking deposits and
simultaneously provides some ancillaries services.
General banking is the front-side banking service department. It provides those customers who come
frequently and those customers who come one time in banking for enjoying ancillary services. In some
general banking activities, there is no relation between banker and customers who will take only one
service form bank. On the other hand, there are some customers with bank are doing its business
frequently. It is an important department for all banks because it provides day-to-day service to the
customers. Front Desk is the important for general banking. Customers give their deposits and meet
their demand for cash by honoring cheques. Besides this a customer opens new accounts, remit funds,
issues bank drafts and pay orders etc. There are various sections in this department, which are as
follows: -
 Cash Section
 Accounts Opening Section
 Cheque Clearing Section
 Remittance Section
1. Cash Section
The most vital and important section of the branch is Cash Department. It deals with all kinds of cash
transactions. This department starts the day with cash in vault. Each day some cash that is opening cash
balance are transferred to the cash officers from the cash vault. Opening cash balance is adjusted by
cash receipts and payments. This figure is called closing balance. This balance is then added to the
vault. This is the final cash balance figure for the bank at the end of any particular day. There is an
important clause and duty practiced by the branch is to refund the principal amount that exceeds more
than Tk. 1 crore at the principle branch of the bank.
Books Maintained By This Section
 Vault Register: It keeps account of cash balance in vault in the bank.
 Cash Receipt Register: Cash receipt in whole of the day is recorded here.
 Cash Payment Register: Cash payments are made in a day are entered here.
 Rough Vault Register: Cash calculation for final entry in vault register is done here as any error
and correction here is not acceptable
 Cash Balance Book: Balance here is compared with vault register. If no difference is found,
indicates no error.
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Functions of Cash Department :
Cash Payment -
1. Cash payment is made only against cheque
2. This is the unique function of the banking system, which is known as Payment on
demand.
3. It makes payment only against its printed valid cheque.
Cash Receipt -
1. It receives deposits in form of cash
2. It collects money only its receipts forms.
Cheque Cancellation or Cash Payment Process
Step 1
 Receiving Cheque by the employee in the cash counter
 Verification of the followings by the cash Officer in the computer section
Step 2
 Date of the Cheque (present within 6 months from issue date)
Issued from this branch
 Amounts in figure and sentence written does not differ

 Signature of the drawer does not differ
 Cheque is not torn or mutilated
Step 3
 Gives pay cash seal and sends to the payment counter
Step 4
 Payment officers make payment
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2. Account Opening Section
Account opening section is an important factor for banks because customer is the main source of bank.
Selection of customer is another important factor. Bank‘s success and failure largely depends on their
customers. If customer is not good then may create fraud and other problems by their account with bank
and thus destroy goodwill of banks. Therefore, bank must be conscious in selecting its customer. For
this reason Al-Arafah Islami Bank Ltd. keep key information system.
Accounts Opening Process
Recently, Bangladesh Bank has been declared, designed and enforced a unique format of form for every
banks. This format should hold the important document in a same manner and process respectively for
different kind of accounts. Al-Arafah Islami Bank Ltd. is not different from this practice. Accounts
opening process can be as follows:
Step 1
 Receiving filled up application in bank‘s prescribed form mentioning what type of
account is desired to be opened.
 The form is filled up by the applicant himself/ herself
 Two copies of passport size photographs from individual are taken and in case of firms
photographs of all partners are taken
 Officer are taken information from customer by key information system
Step 2
 Applications must submit required documents
 Applications must sign specimen signature sheet and give mandate
 Introducer‘s signature and accounts number-verified by legal officer
Step 3
 Filling & signing up KYC or Know Your Customer Form
 Filling & signing up Owner Information Form
Step 4
 Authorized Officer accepts the application
Step 5
 Minimum balance is deposited-only cash is accepted
Step 6
 Account is opened and a cherub book and pay-in-slip book is given
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Information Collected to Open Account:
Accounts opening information that is collected by the Al-Arafah Islami Bank Ltd. varies for each type
of account.
Individual:-
→ Name
→ Present and Permanent Address
→ Date of birth and age
→ Nationality
→ Tax Information Number (TIN- if available )
→ Passport or certificate provided by the employer
→ Photograph of the account holder
→ One photograph of the nominee duly attested by the account holder.
→ Nominee declaration form
→ Money laundering leaflet
Partnership Firm:-
→ All the required information mentioned for Individual Accounts; along with,
→ Copy of Partnership Dead
→ Mandate from the partners is essential – indicating who will operate the account
Limited Company:-
→ All the required information mentioned for Individual Accounts; along with,
→ Certificate of Incorporation
→ Copy of Memorandum and Article of Association
→ Certificate of Commencement
→ Copy of Resolution of the Board of Directors

Dormant Account:-
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If any account is inoperative for more than one year is called dormant account. To operate these
accounts manager permission is necessary.
Transfer of Account:-
 An account can be transferred from branch to branch and only from the same bank.
Following steps are considered for this purpose:
 Application in written to the Manager of the account maintaining branch
 Manager sends a request to the manager of the desired branch of depositors
 Sends original Account opening application and specimen signature sheet with the
balance remained in the account at he sent Manager‘s request
 New account is opened at desired branch
Cheque Clearing:-
Bank receives all kinds of cheque in favor of the client for clearing. When cheque is received it is
necessary to endorse it and cross it specially.
Types of Cheque Explanation Clearing Process
Inward Clearing Cheque Cheque received from the Party‘s A/c…Dr. Al-Arafah
clearing house of Al-Arafah Islami Bank Ltd. General A/c…
Islami Bank Ltd. Cr.
OBC (Outward Bills for Cheques of other branch of These cheques are directly sent
Collection) Al-Arafah Islami Bank Ltd. to the
within its clearing house area. respective branch and request
them to sent IBCA. When it
comes, then customer‘s A/c is
credited for the cheque.
Clearing Cheque Cheques another bank within Al- These cheques are sent to
Arafah Islami Bank Ltd. clearing clearing house via Dhanmondi
house area. Branch. When drawee bank
honor the cheques, then the
account of cheque depositors are
credited.
Outward Clearing Cheques for another bank If any branch of AIBL exists
outside the clearing area within the clearing house area of
drawee bank then AIBL send the
cheque to that branch of AIBL
and sends IBCA to it.
Inward Bills for Collection From other branch AIBL These cheques are settled by IBCA,
(IBC) i.e. debiting depositor‘s account and
crediting sender‘s
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From another bank outside the These cheques are settled
clearing house debiting depositor‘s account and
sending DD, MT, TT in favor of
sender‘s bank.
3. Clearing Department
Cheques clearing section of Al-Arafah Islami Bank Ltd. receives cheque, demand drafts and pay orders
of their clients. Upon the receipt of the instrument the cheque clearing section examines three types of
payment modules.
 Whether the Paying Bank within Dhaka City: The cheques clearing section of Al-Arafah Islami
Bank Ltd., Dhanmondi Branch sends Inter Branch Debit Advice (IBDA) to the head office on
the receiving day of the instruments. The main branch takes those instruments to the clearing
house on the following day. If the instruments are dishonored, Head Office of Al-Arafah Islami
Bank Ltd. sends IBDA to the Al-Arafah Islami Bank Ltd., Dhanmond Branch.
 Whether the Paying Bank of their own branch: The cheque clearing section of Al-Arafah Islami
Bank Ltd., Dhanmond Branch sends Outward Bills for Collection (OBC) to the concerned
paying branch to get Inter Branch Credit Advice (IBCA) from the paying branch. If the paying
branch dishonors the instrument, the paying branch returns it to the Al-Arafah Islami Bank Ltd.,
Dhanmond Branch describing why the instrument is dishonored.
 Types of Cheque Collected by Clearing Department:
 Local Bills Collection Cheques (LBC): Local bills collection cheques are those cheques, which
are collected and paid by two different branches of a bank situated in the same city.
 Outward Bills Collection Cheque (OBC): OBC cheques are those cheques, which are collected
and paid by two different branches of same or different bank situated in the outstation.
 Transfer Cheque: Transfer Cheques are those cheques, which are collected and paid by the same
branch of Al-Arafah Islami Bank Ltd.
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Clearing House:-
Clearing House is an arrangement under which member banks agree to meet, through their
representatives, at an appointed time and place to deliver instruments drawn on the other and in
exchange, to receive instruments drawn on them. The net amount payable or receivable as the case may
be, is settled through an account kept with the controlling bank.
Types of Clearing:
 Outward Clearing: Outward clearing means when a particular branch receives instruments drawn
on the other bank within the clearing zone and those instruments for collection through the
clearing arrangement is considered ad outward clearing for that particular branch.
 Inward Clearing: When a particular branch receives instruments, which drawn on them and sent
by other member bank for collection are treated as inward clearing.
4.Remittance :-
Sending money from one place to another through some charges is called remittance. To pa or
receive money of customers in the form of remittance from one place to another, from one
person to another inside and outside the national boundary is an earning source of every bank.
Dhanmondi Branch, Al-Arafah Islami Bank Ltd. operates both the foreign and local remittance
to serve it‘s customers. In addition, this service is an important part of country‘s payment
system. Through this service, people can transfer their funds from one place to another place
very quickly.
Foreign Remittance :-
Foreign remittance is to send money of customers from one place to another, from one person to
another outside the national boundary. Though Dhanmondi Branch, Al-Arafah Islami Bank Ltd.
is a non-ad branch, it can able to serve the customers by receiving and paying their incoming
foreign remittance in the form of local currency. Foreign remittance is received by the bank via
some internationally authorized agents.
Local Remittance:-
Sending money of customers in the form of remittance from one place to another, from one
person to another inside and outside the national boundary is another earning source of every
bank. As being a non-ad branch Dhanmondi Branch of Al-Arafah Islami Bank Ltd. only
operates the local remittance to serve the customers. In addition, this service is an important part
of country‘s payment system. Through this service, people can transfer their funds from one
place to another place very quickly. There are several techniques for collecting local remittance.
These are:
 Demand Draft (DD)
 Telegraphic Transfer (TT)
 Pay Order
51 | P a g e
Type of Services
Mudaraba Terms Savings Deposit:
Deposit in monthly installment @Tk.300/-, Tk.500/-, Tk.1000/-Tk.1500/- ; Tk.2000/- is obtained

under the aforesaid scheme for a tenure of 5,8,10 and 12 years and the same is withdrawal with
profit at the end of the tenure.
Monthly Profit based Term Deposit:
Under the above scheme, deposit of Tk. 1.00 lac and multiple thereof are accepted for a term of
5 (five) years and the bank gave profit thereon Tk. 885 per month per lac and proportionately on
the rest amount of deposit under the category during the year under review. The aforesaid rate
shall, however, be adjustable at the close of calendar year on finalization of accounts.
Monthly Haj Deposit:
Hajj deposit at monthly installment from 1 (one) year to 20(twenty) years are accepted under the
above scheme to enable the account holder to perform Hajj out of the accumulated saving with
profit.
Onetime Haj Deposit:
Under the above scheme, fixed amount of Hajj deposits are accepted from the clients for
particular term and as per rules profit is accumulated thereon per year in this regard. As and
when the fixed deposit is matured, Hajj expenses are defrayed by the same. Under the scheme,
the guardians may also open Hajj account to enable their successors to perform Hajj. Highest
amount of profit is paid in the above types of deposit by the bank.
Savings Investment Deposit:
Deposit under the scheme is accepted by monthly installment and after expiry of the term,
double amount of such savings is given as investment in feasible sectors by the bank as per
choice of the depositors without any collateral security. Any one by saving under the scheme can
take business venture on utilization the amount saved under the scheme as well as availing bank
investment.
52 | P a g e
Marriage Savings Deposit:
Fixed monthly installment for a particular period is to be deposited to defray the expenses of
marriage and the bank allows double of saving or Tk.30,000/- which is higher as investment to
procure ornaments, furniture, fixture etc., repayable in 24 monthly installment without any
collateral security.
Savings Bond Deposit:
Under this scheme the bank has introduced saving bonds for Tk. 10,000/-, Tk.25,000/- and Tk.
100,000/- for 3,5 and 8 years. After the completion of the tenure the deposit.
Investment:
The Total investment of the bank stood at Tk.5079.21 million against Tk.3728.41 million during
the corresponding period of last year. The percentage of increase is 36.23% as against 13.00% in
banking sector. The bank extends investments to the clients under the following modes of
investment under Islamic Shariah:
Bai-Murabaha or simply Murabaha:
The terms ―Bai-Murabaha‖ have derived form Arabic words Bai and Ribhum. The word ―Bai‖
means purchase and sale and the word ‗Ribhum‘ means an agreed upon profit. So Bai-Murabaha
means sale for an agreed upon profit. It may be defined as a contract between a Buyers and a
Seller under which the seller sells certain specific goods permissible under Islamic Shariah and
the word Law of the land to the Buyer at a cost plus and agreed upon profit payable today or on
some date in the future in lump-sum or by installments. The profit may be either a fixed sum or
based on a percentage of the price of the goods.
Musharaka:
The word Musharaka is derived from the Arabic word Sharikah meaning partnership. Islamic
jurists point out that the legality and permissibility of Musharakah is based on the injunctions of
the Holy Qura‘n, Sunnah and Ijma (consensus) of the scholars. Musharaka transaction may be
conducted in the following manner: One, two or more entrepreneurs approach an Islamic Bank
to request the financing required for a project. The bank, along with other partners, provides the
necessary capital for the project. All partners including the Bank have the right to participate in
53 | P a g e
the project. The profit is distributed according to an agreed ratio. However, losses are shared in
exactly the same proportion in which the different partners have provided the finance for the
project.
Mudarabah:
The term Mudarabah refers to a contract between two parties in which one party supplies capital
to the other party for the purpose of engaging in a business activity with the understanding that
any profits will be shared in a mutually agreed upon. Losses, on the other hand, are the sole
responsibility of the provider of the capital. The first party provides capital and the other party
provides the expertise with the purpose of earning lawful profit (approved by Islamic law) which
will be shared in a mutually agreed upon proportion.
Bai-Muajjal:
The term ‗Bai‘ and ‗Muajjal‘ are derived from the Arabic words ‗Bai‘ and ‗Ajal‘ where ‗Bai‘
means purchase and sale and ‗Ajal‘ means a fixed time or a fixed period. So Bai-Muajjal is a
sale for which payment is made at a future fixed date or within a fixed period. In short, it is a
sale on Credit. It is basically a contract between a buyer and seller under which the seller sells
certain specific goods, permissible under Shariah and law of the country to the buyer at an
agreed fixed price payable at a certain fixed future date in lump-sum or in fixed installments.
54 | P a g e
SWOT ANALYSIS
Strengths Cooperation with each others Fewer default loans.

Membership with SWIFT. Good banker-customer
relationship. Energetic work force
Weakness Reluctance to add campaign. Some inexpert and

laggard assistant officers. Existing manual
vouchers. Shortage of Branch. Lack of consumer
credit scheme. Entrance of new private Banks. Not
enough Efficient administration. Weak in
marketing.
Opportunity Huge business area. Introducing ATM card.

Growth sales volume. Introducing any branch
banking through online
Threats Different services of FCB‘S (ex: Phone Banking )

Different classic services of Foreign Banks..
55 | P a g e
Methodology
The findings from the survey can be listed under following two head- 1.Quantitative findings
2.Qualitative findings Quantitative Findings The quantitative findings that are found by
analyzing the general banking sector customers response through SERVQUAL instrument are as
follows- 50 customers were surveyed as sample (from the population size of almost two
thousand) under the study to measure the satisfaction level of the general banking customers of
Al-Arafah Islami Bank Ltd (Manda Branch). The demographic information of samples is as
follows:
Sl. Gender FREQUENCY PERCENTAG CUMULATIVE PERCENTAGE

E
01 Male 46 92% 92
02 Female 04 08% 100
GRAPH:> Based on Gender:
From the analysis above it is showed that, among the fifty (50) respondents there is only four(4) female
customers which is short in number in compare with forty six (46) male. This result says that, the bank
provide less attention to female customers and as well as there have no any separate service desk for
them.
56 | P a g e
Table: Sample’s frequency distribution based on Age:
SL. Age group Frequency Percentage Cumulative Percentage

01 18-25 Years 05 10% 10%
02 26-30 Years 18 36% 46%
03 34-50 Years 25 50% 96%
04 51-Above 02 n=50 4% 100%
GRAPH:> Based on Age Group:
The survey result of age group distribution indicates that, young and old age customers is only 10% and
4% respectively which is less than other two age group. It is happened because of lack of prompt
service.
57 | P a g e
Table: Sample’s frequency distribution based on Service Group:
SL Profession Frequency Percentage Cumulative Percentage

01 Business 37 74% 74%
02 Service 09 18% 92%
03 Student 01 2% 94%
04 Housewife 03 n=50 6% 100%
GRAPH:> Based on Profession:
Result from profession distribution it is shown that there is only 2% students who visit the bank. This
number is small rather than other profession. It is because of less or no product or service for students.
Ability of employees to perform promised service dependently & accurately-According to customers‘

response, performance of all the dimensions listed under Reliability head(acting according to promises,
sincerity in problem solving, performing the service right at the first time, providing service at the
promised time & insistence on error free record)are quite. So, the employees are able to perform
promised services dependently and accurately Responsiveness of employees to satisfy customers-
According to customers response, statements under Responsiveness head (guidance at entrance, prompt
service, willingness to help, seeking pardon for late) are satisfactory.
58 | P a g e
Assessing General Banking Customer Satisfaction Level at AIBL:
Satisfactory, there is a large number of customers who says that guidance at entrance and seek pardon
for making wait is average that it is neither satisfactory nor dissatisfactory. Assurance of competency,
courtesy, credibility & security-From customers‘ point of view, all dimensions listed under ―Assurance
head (employees behavior in still confidence in customers, safe felling in transactions, consistent good
courtesy of employees & having decent knowledge of employees in answering customers queries)are
quite satisfactory. So, on average the customers are assured enough by competence, courtesy, credibility
and security of the employees and the bank. Tangible appearances in satisfying customers-Customers of
the bank are well satisfied with all types of tangible appearances (equipments, materials, physical
facilities &employees) inside the bank. And these factors made the tangible dimension to stand top
among all other dimensions.
Performance in personal care, understanding customers & offered banking hour-From the survey result
it is found that ―the employees of AIBL have the short interest of customers in their heart‖. Other
statements of Empathy dimensions such as service charges and individual interest is satisfactory from
the customer point of view. So, from the quantitative analysis it is found that although in some
dimensions customers are not properly satisfied, the overall result is pointing to a satisfactory level of
customers satisfaction at Al-Arafah Islami Bank Limited, Dhanmondi Branch. There are some points
where it needs to improve performance to increase the level of customer satisfaction. These are-holding
best interest of customer, provide service as promised, providing information exactly when service will
be provided, providing quick service, response timely to customers, etc.
Qualitative Findings:
The key informants believe that the customers can be made more satisfied by providing them quick
service. They also think that most of the customers deal with lower level officers of general banking and
SME department. Customers of the bank are increasing day by day. It will not be possible to serve
customers then as they serve today. To make provide them prompt service without creating any queue
more employees are needed un
59 | P a g e
The Questionnaire/ Instrument:
I have followed the process of face to face interview in measuring the customer satisfaction level of
general banking sector becauseit was convenient for me,as I have passed so much time at the bank
during my internee program. The information collection was performed by using RATER or
SERVQUAL Instrument. In the mid-80s, Parasuraman, Zeithaml and Berry (1988, 1991) conducted
extensive studies in different industries and developed the SERVQUAL instrument: a22-item scale
with a set of service quality dimensions to quantify a customer‘s assessment of a company’s service
quality. Five key dimensions of service quality — reliability, responsiveness, assurance, empathy and
tangibles — have been identified and form the foundation on which a lot of other studies on service
quality have been built. By the early-90s the authors had refined the model to the useful acronym
RATER.
SERVQUAL is widely recognized and used, and it is regarded as applicable to a number of industries,
including the banking industry (Yavas, Bilgin, Shemuell, 1997).Nyeck, Morales, Ladhari, and Pons
(2002) stated the SERVQUAL measuring tool―remains the most complete attempt to conceptualize
and measure service quality (p.101). The main benefit to the SERVQUAL measuring tool is the ability
of researchers to examine numerous service industries such as healthcare, banking, financial services,
and education (Nyeck, Morales, Ladhari, & Pons, 2002).
The SERVQUAL instrument has been the predominant method used to measure consumers‘ perceptions
of service quality. It has five generic dimensions or factors of service quality that are stated as follows
(Van Iwaarden et al., 2003):
 Reliability: Ability to perform the promised service dependably and accurately ,

 Assurance (including competence, courtesy, credibility and security): Knowledge and courtesy
of employees and their ability to inspire trust and confidence ,
 Tangibles: Physical facilities, equipment and appearance of personnel;
 Empathy (including access, communication, understanding the customer):Caring and
Individualized attention that the firm provides to its customers;
 Responsiveness: Willingness to help customers and provide prompt service.
Using this RATER/SERVQUAL instrument I have collected customers‘ degree of agreement with 20
different statements categorized under 5 major dimensions. These five dimensions indicate various
influencing forces in satisfying customers. The parameters covered by this RATER/ SERVQUAL
instrument are as follows:
The Rating Scale

Customer responses have been recorded by using 5 point Likert Scale or Technique where the customer
were asked to evaluate each statement to rate their degree of agreements or disagreements with each of
20 statements. These degrees of agreements or disagreements were plotted on the 5 point Likert Scale
where point 1indicates ―Strongly Disagree and point 5 indicates ―Strongly Agree with the statement.
60 | P a g e
Recommendations
Use of Marketing Research:
The management of Al-Arafah Islami Bank Ltd should regularly execute marketing research in order to
keep a regular track of satisfaction levels. A simple research whether on the phone or face-to-face
interview or consumer survey keep the management informed about the changing attitude of the
customers and thus they can minimize the gap between the customer expectation and the management
perceptions of customer expectations. For example, the calling center can call up their customer or when
they arrive in the bank, ask them about the services they are being provided and how they can improve
it or what measure should take regarding the quality improvement.
Complaint Management:
Al-Arafah Islami Bank Ltd should actively manage the complaints of various customers and encourage
customers to give feedback about the services. Through complaint solicitation the management can
collect and document complaints of customers, then use that information to identify dissatisfied
customers, correct individual problems where possible common service failure points. And also critical
incidents studies as it's powerful and vivid in eliciting customer requirements, in the service encounter
level and through this the researcher emerges with a list of desirable and undesirable employee
behaviors. This helps the management to train the employee on the facets where they need improvement
and learning.
Offering Priority Service:
Indeed, convenience and personal service is what consumers wanted from the banks serving small
communities, as they had only few branches. Historically bankers didn‘t know customers well, this lead
to a significant drop of customer acquisition. This has compelled the modern banks to know each
customer by name, not to be left out; the larger commercial banks today are emphasizing customer
service. Many of the big banks like HSBC, SCB are offering priority service which was absent
previously. If customers walk into the lobby of almost any major bank today, they will see a desk or
window for priority services or special bank customers. Traditional bankers had never thought about
priority services. They simply welcomed customers to come to their banks and open accounts. Today At
some banks, customers are assigned a personal banker who will handle all of their bank transactions
directly. Some preferred customers at BANK can receive a sticker on their cheques, which allows them
to avoid standing on line and instead walk right up to a teller that handles special-service clients. This is
what was lacking previously.
61 | P a g e
Establish more rural branches & Increase ATM booths:
Now a day‘s bank is pretty faithful financial institution. Even village people are realizing the
importance of bank. So Al-Arafah Islami Bank Ltd can spread their branches to rural areas more
intensively. It will definitely increase the market share of Al-Arafah Islami Bank Ltd. Al-Arafah Islami
Bank Ltd has to increase its ATM booth, especially in the major city. Its major competitors have huge
number of ATM booth. To attract more depositors it has to do this.They must take necessary footstep to
lessen the amount of time they are requiring currently.
Efficiency of the staffs:
According to the customer perception, the major problem of the traditional service is the consistency of
the efficiency of the staffs. In order to analyze the efficiency there are a number of factors that have
been taken into consideration. Some of these factors are responsiveness, attentiveness, helpfulness,
ability to provide speedy and correct service, respect and courtesy towards customers etc. Al-Arafah
Islami Bank Ltd Manda Branch has hundreds of customers daily and to be efficient with each of the
customer in an equal way is rather impossible. Again, measuring efficiency for Walk in Service is not
an easy task. However, it was done through personal survey of complete observation of employees
throughout the internship period and by a survey of questionnaire to the customers. An attempt was to
consider the answers of the customers who visit the bank for more than two times a month because only
they would be able to determine and know the efficiency of the employees in a better way. To be an
efficient employee in the bank, they need to be responsive to customer demand, attentive to the
customer‘s query, helpful and courteous with the customer, having ample knowledge about the
customer‘s problems, and providing service in a quick and right way the very first time. These are a few
factors analyzed to get a proper analysis of the first objective. Some were determined with the
observation method and some as mentioned earlier with the questionnaire method.
62 | P a g e
Conclusion
Al-Arafah Islami Bank ltd. is a unique combination of shariah & Islamic banking. Among non
government commercial banks, Al-Arafah Islami Bank Ltd. is a milestone for economic development. It
has been playing an important role to eradicate the unemployment problem in Bangladesh. Over 800
employees and 5500 shareholders are getting benefit from this organization. But most of the people in
our country have misconception about Islamic banking specially Al-Arafah Islami Bank Ltd. & other
Islamic banks. They cannot find any difference in its operation between conventional commercial Banks
and Islamic Banks because they have no clear idea about the activities as well as investment mechanism
of Islamic banks.
The Bank is committed to run its activities as per Islamic Shariah and thus it has different
investment(credit) modes, different repayment schedules, different disbursement procedure, different
mark up system. and also has a different Credit(Investment) policy. ‗Mark up ‘means adding some
additional value after purchasing the goods but before to sell the same to another people. This system is
accepted in Islamic Shariah because here money is converted to goods.‘ Money begets money ‘is
prohibited in Islamic Shariah. People is getting more benefit from the dealings of Islamic banking
because here quarterly interest is not charged and there is no possibility of interest to be converted into
principal. It cannot take part in call money market. Mudaraba, Musharaka are another mode of
investment in Islamic Banking.
The fund of bank strongly depends on deposits and it is has a big influence through the number and
amount of deposit. Manda Branch, Al-Arafah Islami Bank Ltd. has a better opportunity to have huge
deposit accounts to increase it fund from the savers unit Mugdapara, Maniknagar, Basabo and Khilgaon.
Credit card and ATM cards can play an important role in capturing the unutilized money. The bank has
to give huge concentration on better customer service and satisfaction.
63 | P a g e
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65 | P a g e
Results and Discussion
Survey Form:
Please show the extent to which you believe AIBL (Al-Arafah Islami Bank) has the feature described in
the statement. Write number that best shows your perceptions.
1. When AIBL promises to do something by a certain time, it does so__________
a. Strongly disagree
b. Disagree
c. Average
d. Agree
e. Strongly agree
2. When you have a problem,employees give appropriate solution of your problems so __________
b. Disagree
c. Average
d. Agree
e. Strongly agree
66 | P a g e
3. Your bank completes your transactions rapidly__________
b. Disagree
c. Average
d. Agree
e. Strongly agree
4. AIBL insists on error free records. __________
b. Disagree
c. Average
d. Agree
e. Strongly agree
5. Guidance at the entrance of the branch is satisfactory.__________
b. Disagree
c. Average
d. Agree
e. Strongly agree
67 | P a g e
6. Employees in AIBL give you prompt service.__________
b. Disagree
c. Average
d. Agree
e. Strongly agree
7. Employees in AIBL are always willing to help you.__________
b. Disagree
c. Average
d. Agree
e. Strongly agree
8. Employees in AIBL pardon for making you wait__________
b. Disagree
c. Average
d. Agree
e. Strongly agree
68 | P a g e
9. The behavior of employees in AIBL installs confidence in you__________
b. Disagree
c. Average
d. Agree
e. Strongly agree
10. You feel safe in your transactions with AIBL__________
b. Disagree
c. Average
d. Agree
e. Strongly agree
11. Employees in AIBL area consistently courteous with you.__________
b. Disagree
c. Average
d. Agree
e. Strongly agree
69 | P a g e
12. Employees in AIBL have the knowledge to answer your questions.__________
b. Disagree
c. Average
d. Agree
e. Strongly agree
13. Service charges of AIBL are reasonable as comparatively to other banks..__________
b. Disagree
c. Average
d. Agree
e. Strongly agree
14. AIBL has your best interests at heart...__________
b. Disagree
c. Average
d. Agree
e. Strongly agree
70 | P a g e
15. The employees of AIBL understand your specific needs...__________
b. Disagree
c. Average
d. Agree
e. Strongly agree
16. AIBL has operating hours convenient to all its customers..__________
b. Disagree
c. Average
d. Agree
e. Strongly agree
17. AIBL has employees who give you personal attention..__________
b. Disagree
c. Average
d. Agree
e. Strongly agree
71 | P a g e
18. Employees in AIBL are never too busy to respond to your request__________
b. Disagree
c. Average
d. Agree
e. Strongly agree
19. The employees of AIBL understand your specific needs..__________
b. Disagree
c. Average
d. Agree
e. Strongly agree
20. AIBL has your best interest at heart.__________
b. Disagree
c. Average
d. Agree
e. Strongly agree
72 | P a g e
Statement 1:
When AIBL promises to do something by a certain time, it does so.
 Explanation: The above statement denotes the degree of keeping promises by the bank with a
certain period of time.
 Survey Result: The summary of the survey result of this statement is shown by the following
table.
73 | P a g e
 Interpretation of the Result: From the above result it is seen that the mean value is 4.34. That
means customers are satisfied with the performance against the promises made by AIBL. The
mode value represents that most of the respondents strongly agree with the above statement. So,
on this point of fulfilling promises customers are seemed to be satisfied since the mean is
beyond the cut-off point of 4.00.
 Result on Likert Scale :
An identical approach would be followed for the rest of the questions.
74 | P a g e

Internship Report On General Banking Sys

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Internship Report on

“General Banking system of Al-Arafah Islami Bank Ltd.”

Atish Dipankar University

General Banking system of

Department of Business Administration

Atish Dipankar University

(ADUST), Dhaka, Bangladesh.

of the degree of Bachelor of Business Administration.

Subject: Submission of Internship Proposal.

Arafah Islami Bank Ltd.” as a requirement of internship program.

03 Purpose of the Study 13

06 General Banking Functions 19

12 Results and Discussion 40

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

 Proliferation of Shariah Based Banking Practices.

 Quality financial services adopting the latest technology.

 Fast and efficient customer services.

 Maintaining high standard of business ethics.

 Steady & competitive return on shareholders‘ equity.

 Innovation 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.

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

 To improve Banker- Customer relationship through improving customer service.

AIBL’s Products and Services:

 Saving A/C (MSD)

 STD (Short Term Deposit) A/C

 Fixed Deposit Account (FDR/MTDR)

 Letter of Credit Issue

 Letter of Credit Advice

 Foreign Documentary Bill Purchase (FDBP)

c. Services of the Bank:

 ATM Card Service

d. Frequent Services of AIBL:

 Automated clearinghouse (ACH) transaction

 Bill presentment and payment

 Downloading transaction information

 Other value-added services

Purpose of the Study

Objectives regarding this study are as follows:

 Understanding the environment, functions and management of AIBL.

 To learn banking more thoroughly

 To fulfill academic requirement

 To identify major strengths and weaknesses of AIBL in retail products in respect to

 To recommend for the successful operation of the services offered by AIBL.

 The bank confidentially keeps the data.

 Supply of more practical and contemporary data is another out coming.

 This suffers from a narrow data range for analysis.

 Communication gap between the related officials and me.

 In some cases officers were reluctant in supplying relevant information, which

 Due to confidentiality of management, some shortcoming may be available in the

Strategic Marketing - Segmentation & Positioning :

Gap of Perceived Service Quality And Post Purchase Behavior:

Service Quality Dimensions:

Customer Satisfaction is so important…

Post Purchase Evaluation:

Historical Banking Approach:

Books Maintained By This Section

 Vault Register: It keeps account of cash balance in vault in the bank.

1. Cash payment is made only against cheque

3. It makes payment only against its printed valid cheque.

2. It collects money only its receipts forms.