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My-Internship-Report-on-modes-of-investment-of-IBBL

Thesis · April 2014

DOI: 10.13140/RG.2.2.25042.66245

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 Submitted To:

Rabeya Sultana
Lecturer in Finance
Department of Business Administration
Northern University Bangladesh

Submitted By:
Md. Sahriar Nafiz
ID# BBA-110170193
Major in Finance

Date of Submission: 30 April 2014

 Internship Report on:

“Different Modes of Investment of Islami Bank Bangladesh Ltd.”

Mohakhali Branch, Dhaka

 Letter of Transmittal

Date: April 20, 2014

Rabeya Sultana
Lecturer in Finance
Department of Business Administration,
Northern University Bangladesh

Subject: Submission of Internship Report entitled “Different Modes of Investment of Islami

Bank Bangladesh Limited”

Dear Madam,

I am pleased to submit the internship report as a partial fulfillment of the BBA program. I tried my
best to present this internship report on “Islamic Banking System Practiced By Islami Bank
Bangladesh Ltd.” As per your guideline. I tried my best to work sincerely to cover all aspects
regarding the matter. Though I have faced some limitations to prepare the report due to scarcity of
organized data, time limitation and not enough knowledge about the banking sector.

However, if you need any clarification, suggestion, directions for further improvement of the
report, I will be obligated to provide with further explanation. I sincerely hope that you will
appreciate my effort.

Sincerely yours,

Md. Sahriar Nafiz

ID No: BBA-110170193
Major in Finance
Department of Business Administration
Northern University Bangladesh
To Whom It May Concern:
 Student’s Declaration

I am Md. Sahriar Nafiz, bearing ID# BBA110170193, student of the BBA program of Northern
University Bangladesh, Major in Finance; do hereby declare that the internship report entitled
‘Different Modes of Investment of Islami Bank Bangladesh Limited’ is an original. The
assigned work is done by me for partial fulfillment of my BBA degree and as a part of the academic
curriculum. It has not been submitted by me before for any other degree.

Md. Sahriar Nafiz

BBA-110170193

Major in Finance and Minor in Accounting

Department of Business Administration

Northern University Bangladesh

 Certificate of Supervisor

This is to certify that Md. Sahriar Nafiz student of Northern University Bangladesh bearing ID
No: BBA-110170193 under faculty of Business Administration has done an internship report titled
“Different Modes of Investment of Islami Bank Bangladesh Limited” at Mohakhali Branch
under my supervision.

The student is found to be intelligent, sincere and hardworking. The student has put in a lot of
work and has also brought forth her views and ideas which are being studied for implementation
at appropriate time. It is a record of internship carried out by Md. Sahriar Nafiz under my
supervision. No part of the project has been submitted for any degree, diploma, and title of
recognition before.

I wish him every success in her future endeavor.

Rabeya Sultana

Lecturer in Finance

Department of Business Administration

Northern University Bangladesh

 Acknowledgement

First, I would like to thank almighty Allah for blessing me with the ability to prepare and submit
this report. A large number of individuals have contributed directly and indirectly in the
preparation of this report. I am thankful to all of them for their assistance and encouragement. At
first I dedicate all the credits to the Northern University Bangladesh.

Special mention must be made to some persons from whom I have received continuous support
without which it might not be possible for me to complete the report. Among them Rabeya Sultana,
Lecturer in Finance, Department of Business Administration, Northern University Bangladesh
who has spent his valuable time in supervising my study very closely and cordially. I cannot deny
his suggestions to apply new indebted to his contribution.

I would like to thank my gratitude to Md. Faruque al-Mamun (Head of Branch & Manager) at
Mohakhali branch of Islami Bank Bangladesh Ltd. I also would like to thank Hussain Muhammad,
Manager Operations of IBBL Mohakhali Branch. I am also grateful to other personnel of this Bank.
They tried their best to manage their valuable time for me in finishing information, as well as give
me suggestion to conduct the study.

I also express my thanks and gratitude to the authority of IBBL to allow me to complete my
practical orientation at their bank and helped by providing me all sorts of information to prepare
to this report. I would like to thank all other officers in this branch to help me despite tremendous
work pressure. I would very much appreciate and sincerely acknowledge suggestions from friends
for improving of this report.
 Executive Summary

This report focuses my experience in Islami Bank Bangladesh Limited. This report has provided a
clear idea about the Modes of investment of Islami Bank Bangladesh Limited. It contains three
main parts. First part is the introduction part. Second part is the profile of IBBL which gives a
clear idea about establishment of IBBL. Third part focuses on Internship Position and Duties. End
of the report there have learning points, Problems, Recommendations and Conclusion. Basically
IBBL is an Islamic Bank based on “Islamic Shariah”. It follows the alternative concept of Islamic
Banking which represents unique human approaches to credit and banking based on profit-oriented
economy devoid of interest. In this regard IBBL has introduced a number of income generating
programs for the millions of urban and rural poor. With that objective in view IBBL has formulated
a profitable investment option for the poor a credit program to earn and live in a better society with
greater security and peace.

Modes of investment of Mohakhali Branch are divided into three parts. Bai mechanism, Share-
mechanism, and Ijarah-mechanism. This type of investment also divides into many other parts,
like Bai-mudaraba, Bai-muajjal, and Hire purchase under Shirkatul Meelk etc.

Investment performance of IBBL, Mohakhali Branch is increasing day by day. Because most of
the people in our country are religious minded and they want to invest their money according to
Islamic Shariah. Moreover people of all walks of life can easily transact with IBBL comparing to
other commercial private banks in the country.
 Part One:
Introduction Part

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1.1 Introduction
Bangladesh is one of the largest Muslim countries in the world. The people of this country are
deeply committed to the Islamic way of life as enshrined in the Holy Qur'an and the Sunnah.
Naturally, it remains a deep cry in their hearts to fashion and design their economic lives in
accordance with the precepts of Islam. The establishment of Islami Bank Bangladesh Limited
on March 13, 1983, is the true reflection of this inner urge of its people, which started
functioning with effect from March 30, 1983. This Bank is the first of its kind in Southeast
Asia. It is committed to conduct all banking and investment activities on the basis of interest-
free profit-loss sharing system. In doing so, it has unveiled a new horizon and ushered in a new
silver lining of hope towards materializing a long cherished dream of the people of Bangladesh
for doing their banking transactions in line with what is prescribed by Islam. With the active
co-operation and participation of Islamic Development Bank (IDB) and some other Islamic
banks, financial institutions, government bodies and eminent personalities of the Middle East
and the Gulf countries, Islami Bank Bangladesh Limited has by now earned the unique position
of a leading private commercial bank in Bangladesh.

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 1.2 Origin of the Report
This Internship Report has been prepared under the Internship program, an indispensable
part of the Bachelor of Business Administration (BBA) program. For the internship purpose,
we chose Islami Bank Bangladesh Ltd. (IBBL), Mohakhali Branch and prepare this report
on the investment related activities of the organization.

1.3 Significance of the study

Islami Bank Bangladesh Ltd. is the biggest Bank in Bangladesh in the private sector. There
are a few numbers of private Banks that can compete with IBBL. The Banking system aiming
to gain the goal of Islamic economy through setting a well-designed Islamic Monitory
system. Regarding the use of money Islam has.
Its clear-cut instruction through some distinctive guidelines. Avoiding interest ( Riba),
restricting exploitation and speculation etc. are major guidelines in this process. So the
Islamic Banking system is doing Banking business under Islamic guide lines.

1.4 Objective of the Study

The primary objective of this report is to observe the investment related activities for the
Investment Department of Islami Bank Bangladesh Ltd., Mohakhali Branch. The other
objectives include:

 To understand the different modes of investment.

 To familiarize with the various investment schemes.
 To get the practical exposure of the banking activities.
 To adapt with the corporate environment.
 To understand the investment policy of IBBL with other banks.
 To identify the problems related to investments faced by IBBL.
 To familiar the history and operations of Islami Banking in Bangladesh.
 To find out the practices & policies for providing dividend to their shareholders of
IBBL.
 To focus on facilities provided by IBBL to their customers.
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1.5 Scope of the Study

In this report I have focused on all the qualitative which include profiles of IBBL,
investment modes like Bai mode, Profit & loss sharing, bearing mode, Rent sharing mode,
different schemes of investment such as household durable schemes, housing investment
scheme, transport investment scheme, car investment scheme, investment scheme for doctors
small business investment scheme, rural development scheme, etc. and lastly financial
performances have been depicted.

1.6 Methodology of the Study

Methodology is the process or system through which a study is being carried out for the
purpose of the collection of information that is required is collected with the study for
reaching a conclusion on that Study.
This section of the report contains three Questionnaires, as follows:
a) Questionnaires for common Clients

b) Questionnaires for Investors

c) Questionnaire for Banking

1.7 Data collection method

The data required for this study were collected from both primary and secondary sources;
however, the majority of the information was collected from secondary sources.

a) Primary source

Primary data was collected form

 Practical work experience.

 Face to face conversation with clients.

 Branch Manager & Second Officer.

 Face to face conversation with employees and staffs.

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b) Secondary source

The secondary data has been collected from

 Annual Report of Islami Bank Bangladesh Limited.

 Various prescribed forms of investment were analyzed.

 Manuals of Investment of IBBL.

 Different text books & materials.

 Website of the Islami Bank Bangladesh Limited.

 Internet Etc.

The major portion of the data source used for this report is a secondary one.

1.8 Limitation of the Report

I have faced some problems during preparing my report:

 Lack of experience has acted as constraints in the way of meticulous exploration on

the topic.
 Lack of current information.
 Shortage of time for preparing the report in order.
 The study was conducted mostly on secondary data.
 Mohakhali Branch is one of the busiest branches in the Dhaka city.

5
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 Part Two:
Profile and History of Islami Bank Bangladesh Limited

6
Page
2.1 History of Islami Bank Bangladesh Ltd.

In the late seventies and early eighties, Muslim countries were awoken by the emergence of
Islami Bank which provided interest free banking facilities. There are currently more than
300 interest free institutions all over the world. Islami Bank now a days not only operate in
almost all Muslim countries but have extended their wings to the western world to serve both
Muslim and non-Muslim customers. In case of Islami Banking, the establishment of
Mitghamar Local Savings Bank in 1963 is said to be a milestone for modern Islami Banking.
The history of Islami Banking can nevertheless be traced back to the birth of Islam.

In 1974, Bangladesh signed the Charter of Islamic Development Bank and committed itself
to reorganise its economic and financial system as per Islamic Shariah (legal framework of
Islamic Ideology).

In 1978, Bangladesh recommended in Islamic Foreign Minister Conference in Senegal

towards systematic efforts to Islamic Banking.

In 1980, Foreign Minister Conference in Pakistan where Bangladesh Foreign Minister Prof.
Shamsul Hoq, proposed for taking steps for Islamic Banking. Further, Bangladesh Bank sent
representation abroad to study Islamic Banking System. Also, International Seminar held in
Dhaka inaugurated by Bangladesh Bank Governor for early introduction of Islamic Banking.

In 1981, President of the People’s Republic of Bangladesh addressed the 3rd Islamic Summit
Conference held at Makkah and Taif suggested, ''The Islamic countries should develop a
separate banking system of their own in order to facilitate their trade and commerce.''

In 1982, IDB visited Bangladesh for study. They found contributions done by Islamic
Economics Research Bureau (IERB) and Bangladesh Islamic Bankers Association (BIBA);
they mobilized the seminars, public opinion through symposia & workshop. Professional
activities reinforced by Muslim Businessman Society (now reorganized as Industrialists and
Businessman Association). The body mobilized mainly equity capital for emerging Islamic
Bank. Finally, in 1983 Islami Bank Bangladesh Limited (IBBL) came out to take the
challenge of doing banking business.
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Islami Bank Bangladesh Limited (IBBL) is considered to be the first interest free bank in
Southeast Asia. It was incorporated on 13-03-1983 as a Public Company with limited liability
under the companies Act 1913. The bank began operations on March 30, 1983, with major
share by the foreign entrepreneurs.
IBBL is a joint venture multinational Bank with 66.12% of equity being contributed by the
Islamic Development Bank and financial institutions. The total number of branches 286. Now
the authorized capital of the bank is Tk. 20,000 million.

2.2 Islamic Banking

Islamic bank is a financial institution whose status, rules and procedures expressly state its
commitment to the principle of Islamic Shariah and to the banning of the receipt and
payment of interest on any of its operations. -OIC

Ziauddin Ahmed says, “Islamic bank is essentially a normative concept and could be defined
as conduct of banking in consonance with the ethos of the value system of Islam.”

It appears from the above definitions that Islamic bank is systems of financial
intermediation that avoids receipt and payment of interest in its transactions and conducts
its operations in a way that it helps achieve the objectives of an Islamic economy.
Alternatively, this is a banking system whose operation is based on Islamic principles of
transactions of which profit and loss sharing (PLS) is a major feature, ensuring justice and
equity in the economy. That is why Islamic bank is often known as PLS-banks.

2.3 Mission

To establish Islamic banking through the introduction of a welfare oriented banking system
and also ensure equity and justice in the field of all economic activities, achieve balanced
growth and equitable development through diversified investment operations particularly in
the priority sectors and less developed areas of the country.
To encourage socio-economic uplift and financial services to the low-income community
particularly in the rural areas.
8
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 2.4 Vision

Our vision is to always strive to achieve superior financial performance, be considered a

leading Islamic bank by reputation and performance.
 Our goal is to establish and maintain the modern banking techniques, to ensure the
soundness and development of the financial system based on Islamic principles and
to become the strong and efficient organization with highly motivated professionals,
working for the benefit of people, based upon accountability, transparency and
integrity in order to ensure stability of financial systems.
 We will try to encourage savings in the form of direct investment.
 We will also try to encourage investment particularly in projects which are more
likely to lead to higher employment.

2.5 Objectives of Islamic Bank

The primary objective of establishing Islamic Bank all over the world is to promote, foster
and develop the application of Islamic principles in the business sector. More specifically,
the objectives of Islamic bank when viewed in the context of its role in the economy are
listed as following:
 To offer contemporary financial services in conformity with Islamic Shariah;
 To contribute towards economic development and prosperity within the principles of
Islamic justice;
 Optimum allocation of scarce financial resources; and
 To help ensure equitable distribution of income.
9
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2.6 Essential Features of Islamic Bank:

Prohibition of interest:

The traditional capitalist banking system depends on interest. It receives interest for
providing loans and pays interest for taking loans. The spread between these two interests
is the source of its profit. But according to Islamic Shariah all types of interest is banned.
So, Islamic bank does not carry on business of interest and it completely avoids the
transaction of interest.

Investment based on profit:

After departing from interest, the alternate ways of income for Islamic bank is investment
and profit. Thus IBBL gives up any transaction of interest and makes investments based on
profit. Bank distributes its profit to its depositors and shareholders.

Investment in Halal business:

Islamic Shariah has banned the business of haram goods. For example, Islam not only
forbids the drinking of alcohol but also banned any business of alcohol. Therefore, Islamic
bank does not get any haram business and only do halal business.

Halal paths and procedures:

Islamic Shariah also rejects any haram path or process in case of a halal business. Therefore,
Islamic bank system only allows the halal path procedures of halal business.

10
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2.7 Corporate information at a glance (As on 31 October, 2013)

Date of Incorporation 13th March 1983

Inauguration of 1st Branch 30th March 1983
(Local office, Dhaka)
Formal Inauguration 12th August 1983
Share of Capital
Local Shareholders 33.88%
Foreign Shareholders 66.12%
Zones 14
Braches (Including SME/ Agriculture Branch) 286
Equity Tk. 46649
million(30.09.13)
Authorized Capital Tk.20,000.00 million
Paid-up Capital Tk.14,636.28 million
Deposits Tk.455,545.00 million
Investments (including Investment in Shares) Tk.458,295.00 million
Foreign Exchange Business Tk.641,074.00 million
Number of Shared ATM Booths 1520
Number of Own ATM Booths 500
Number of Shareholders 63736
Manpower 12398

2.8 Products & Services of IBBL:

IBBL has the scope to explore the market niche through various types of IBBL instruments.
IBBL offers wide range of IBBL products and services as follows.

 Mudaraba Savings Deposit,

 Mudaraba Term Deposit,
 Mudaraba Special Savings (Pension),
 Al-Wadeeah Current Account,
 Mudaraba Savings Bond,
 Mudaraba Monthly profit Deposit,
 Mudaraba Special Deposit,
 Mudaraba Hajj Savings,
 Mudaraba Muhor Savings,
 Mudaraba Foreign Currency Deposit, and
 Mudaraba Waqf Cash Deposit.
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 2.9 Present programs of the organization

Islami Bank Bangladesh Ltd.

Deposit Collection Investment General Banking Foreign Exchange

2.10 Diagram of Mohakhali Branch

Head of Branch

Manager Operations

General Banking
In charge Foreign Exchange
Investment In charge In charge

Export
Cash & Smart Foreign Remittance
Instru
Clearin Banking Investors
ments

Import

Account SME
Opening Women
12
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2.11 Hierarchy Management of IBBL:

Executive President Deputy

Executive President

Executive Vice President

Senior Vice President

Vice President

Assistant Vice President

Senior Principle Officer

Principle Officer

Senior Officer

Officer

Probationary Officer

Assistant Officer Grade-i

Assistant Officer Grade-ii

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Assistant Officer Grade-iii

 Part Four:

Learning Points, Problems, Recommendations and

Conclusion

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Learning Points:

It was a great experience to have learnt some important banking, finance, marketing functions
that will help me in future. I could learn how to file the official documents accordingly and to
keep track of those files. This helped me understand the importance of file management system
of Islami Bank Bangladesh Ltd.

 I have gathered a very good skill in handling Electronic Integrated Banking Software
(EIBS), Web Based Remittance and Investment which will help me in my future job career.
 I have also experienced that reimbursement of the expense claims is done in a
systematic manner. Profit distribution, Investment Return collection, Foreign Remittance
handling, Spot Cash Payment is some very useful assignments I have been involved
with during my internship program that help me learn a lot about different aspects of
these areas.
 I have learned organizational behavior which will help me to expand my career.
 I have also learned to maintain a good relation with the clients which will help me to develop
my career.

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5.1 Problems of Islami Bank Bangladesh Limited and Mohakhali Branch:

From my observation, I have found some problems of IBBL, Mohakhali Branch and those are
described as below…

1. There are no people on the help desk of the Branch.

2. There is not enough cash counter for cash receiving and deposit money, sometimes there were

a big row of people for depositing and receiving money.

3. The desks are not arranged as their type of task, the task of the desks is not defined.

4. The internet banking activating procedures is so complex, there are more than 3 steps to active
internet banking, a customer have to go in the branch 3 times to the branch to active their I-
Banking.

5. As IBBL do mass banking, the most of the customers are illiterate, so there are no specific

people for helping by writing them.

6. There is only one officer in the account opening desk, he cannot handle a lot of people every

day to open an account and doing their task like updating customer information etc...

7. In the branch there is not enough employees to provide service to the customers.

8. The software system (EIBS) working very slowly, sometimes it's taking one or two minutes to
select an option...

9. Some unskilled employees in the Branch, they do not know much better about their duties &
responsibilities.

10. Lack of marketing strategy, IBBL does not follow the marketing strategy.

11. Low security of internet banking.

12. Old ATM Machine used by IBBL I found a lot of people, their card gets stuck in the ATM.

13. Small numbers of ATM booths.

14. There is no specific rows for VIP peoples for depositing and receiving money.

15. Lack of Marketing strategy and small numbers of marketing activity.

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5.2 Recommendations for IBBL and Mohakhali Branch:

Though Islami Bank Bangladesh Ltd. (IBBL) is performing well, but it has some crucial areas to
improve which are prescribed below:

1. Mohakhali Branch should increase their number of employees.

2. It is a modern banking era. Each and every commercial bank is properly utilizing
technological innovations. So, IBBL needs to utilize these modern technologies to keep pace
with the modern time.

3. IBBL needs to recruit skilled human resources which can turn the bank ahead.

4. IBBL should take a wide range of activity on Marketing.

5. The bank should offer facilities such as Credit card, Visa card.

6. IBBL’s investment processing should become easier than other conventional banks.

7. IBBL should make its investment schemes more attractive for availing high-return projects.

8. IBBL should consider utilization of rural potentials from both efficiency and equity grounds
in the context of the present-day socioeconomic conditions of Bangladesh. Strong
commitments and stepping up through experimentation and implementation of innovative
ideas are the appropriate ways to do that.

9. IBBL should deserve immediate attention in the promotion of the image of Shariah based
banks as PLS (profit-loss-sharing) banks.

10. IBBL can diffuse its scope of investment through focusing Shariah concept regarding
investment among the bank officers; employer and the clients by strong training, workshops.

11. IBBL should initiate different investment modes according to changing /diverse needs of
clients by conducting huge research and study.

12. IBBL should update the eIBS software to work quickly.

13. IBBL should follow modern marketing strategy.

24
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5.3 Conclusion:
Islam is a complete way of life and Allah’s guidance extents into all areas of our lives. Islam has
given detail regulations for our economic life. Therefore, Islami Bank Bangladesh Limited (IBBL)
is trying to establish the maximum welfare of the society by maintaining the principles of Islamic
Shariah which is based on “Quran” and “Sunnah”. Since 1983, IBBL has been the pioneer in
welfare, banking in this subcontinent and it is trying to do all its activities for the betterment
of its depositors. For the greater interest of the depositors the investment policy of IBBL is to
invest on the basis of profit and loss sharing in accordance with the tents and the principles of
Islamic Shariah. Profit earning is not the only motive and objective of the bank’s investment policy
rather emphasis is given in attaining the social good and in creating employment opportunities.

IBBL is not secular in its orientation. IBBL does not finance any project which conflicts with the
moral value system of Islam. IBBL does not strictly consider the credit worthiness of the
entrepreneur. IBBL receives a return only if the project succeeds and produces a profit. IBBL
considers the soundness of the project and business acumen and managerial competency of the
entrepreneur. Therefore, the rate of return on investment of IBBL is greater comparing to that of
conventional banks.

Finally, Islami Bank Bangladesh Limited (IBBL) has been established with a view to conduct
interest free banking to establish participatory banking instead of the debtor-creditor relationship
and finally to establish welfare oriented banking through its investment operations that would
lead to a just society.

25
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References:

Reports:

1. Annual Report of, 2008-2009.

2. Brushier Published by IBBL on its different invest schemes and
activities.

Web Sites:
1. IBBLweb site (2006),Aim and Objectives, Retrieved December 30,
2010, at 2.00 pm from http://www.islamibankbd.com/ Objectives.php
2. IBBLweb site (2006), Introduction, Retrieved December 22, 2010, at
6.00 pm from http://www.islamibankbd.com/ introduction.php
3. Bangladesh Bank Website (2007), from www.bangladesh-bank.org
Retrieved December 05, 2010, at 2.30 pm.
4. IBBLweb site (2006),History, Retrieved December 20, 2010, at 6.30 pm
from http://www.islamibankbd.com/ History.php
5. www.google.com

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 Part Three:
Internship Position and Duties

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3.1 Internship duties and responsibilities:

My internship program duration was for total 60 days. It was designed and maintained by Islami
Bank Training and Research Academy (IBTRA). First 15 days I have done theoretical class in
IBTRA. Then I went to the Mohakhali Branch for practical experience with 45 days and there
was total 31 working days. Where I have learned properly Islamic banking and financial system.
I got a lot of information and gathered experience about IBBL as well as interest free banking
system. After completion of theoretical part, then I went to the Mohakhali Branch for my practical
experiences.
At first I went to the Manager’s room, then I introduced myself with the manager of the Branch.
He guided me about the Islamic Banking System as well as the activity of the branch in short.
He also guided me about the responsibility of mine and working area of mine.

3.2 At Mohakhali Branch:

I have worked 45 days in this branch and there was 31 working days. In this branch, there
were 35 employees. This branch is very busiest compare to other Branches. It is also an AD
Branch. Every employees were very pleased for me. All of them were very cooperative and
friendly. I was working under several sections which are explained below...

3.3 Account opening section:

I ha ve worked total 5 days in this section. This section is one of the busiest sections in this
branch. Because, a new client can enter the banking system, to opening new account. Lot of
customer arrive and try to collect information for account opening. I have provided information
about the account opening requirements to their clients. Customers need two copies passport size
photo, commissioner certificate, introducer sign and nominee photo for their account opening.
Sometimes I helped customer by filling their account opening form because IBBL doing mass
banking most the customers are illiterate. I worked on checking the form whether the
information is filled by customer correct or incorrect. Sometimes I put entry customer
information into IBBL software system and the account opening officer need to only submit the
15

information.
Page
 3.4 Instruments Issuing Section:
After working account opening section .I have worked in instrument issuing section for 4 days.
The instruments are Telegraphic Transfer (TT), Pay Order (PO) & Demand Draft (DD) etc...
When any telegraphic transfer reached to the branch, I enter them in debit voucher, where I
ensure that name, account Number, TT number and dates are correctly printed on the TT
Voucher. Hence I make sure the signature of two officers and lastly send this voucher to the
computer department. In PO & DD leaf, where I ensure name of the organization, drawer
branch, date & amount of money and signature of two officers.

3.5 Clearing Section:

After working clearing section. I worked total 4 days in this section. The main responsibilities were
to receive several cheques from clients. I also attached seal in the front and the back side of the
cheque for clearing. My responsibility was to ensure account number, account holder name, the
accuracy of Tk. In figure & in words which are properly stated in Bank’s cheques. After confirming
these cheques were sent to our clearing officer. He was responsible for entry to the computer and
completing other tasks.

3.6 Smart Banking Section:

After working clearing section, then I went to the smart banking section. I have worked in this
section for 4 days. The working area of the smart banking section is Internet Banking, SMS
Banking, ATM Baking, Mobile Banking etc. My responsibility was to ensure the people’s came to
the smart banking section for smart banking service, I helped customers by providing them with
necessary information as they want. I helped people by filling the application form for I-Banking,
ATM Banking, SMS Banking and Mobile Banking etc. I also helped people in getting their card
quickly and checking the status of their cards. Sometimes I entered customer information into the
computer, then officer submitted the information.
16
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3.7 Help Desk / Information Section:
After working smart banking section, then I have worked 2 days in information section. Lot of
customers arrives every day for collecting information about the products, facilities, foreign
exchange of this branch. Clients wanted to know the balance of their account by coming to
this branch personally or by phone. They come to collect account statement, certificate, 7
days’ notice, address change, sign change, account transfer in this section.

3.8 Investment Section:

After working in the information, then I went to investment section. I have worked total 7 days
in this section. Although Islami Bank Bangladesh Ltd. (IBBL) has been the most profitable
banking organization in Bangladesh since the last few years but it has also got some limitations.
These limitations exist in their operations, management and environment of the Bank. When
we engaged in the IBBL Mohakhali Branch, then we able to talk some of clients, employees of
this Branch and also talk about Banking Activities of this Branch. The investment procedures,
modes of investment and its limitations that are found in the period of my internship are given
below:

3.9 Investment Processing of IBBL

Generally a bank takes certain steps to deliver its proposed investment to the client but the
process takes deep analysis. Because banks invest depositors fund, not banks’ own fund.
If the bank fails to meet depositors demand, then it must collapse. So, each bank should
take strong concentration on investment proposal. However, Islami Bank Bangladesh
Limited (IBBL) makes its investment decision through successfully passing the following
crucial steps and those steps are given as below...

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 Fig: Investment Processing steps of IBBL

3.10 Modes of investment of IBBL:

 Bai-Murabaha;
 Bai-Muajjl;
 Bai-Salam;
 Istishna’a;
 Higher purchase under Shirkatul Melk (HPSM);
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 Mudaraba;
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 Musharakah.
 3.11 Foreign Exchange Section:

At last I went foreign exchange section, I was in the foreign exchange section for 5 days. My main
responsibility was to ensure the documents that they are filled by the client properly and making
branch seal on the documents. On the remittance desk my responsibility was to ensure the secret
number of the clients is properly filled, checking the information of clients according to their
National Identity Card (NID). IBBL provides a lot of service of remittance like Western Union,
MoneyGram Etc. Clients came to a foreign exchange section for their export, import business like
opening LC (Letter of Credit), making payment to abroad etc.

3.12 Finally at Islami Bank Research and Training Institute (IBTRA)

Finally after completing the practical work then I went to IBTRA after my practical working period
at Mohakhali Branch.I made a report for them and submitted to them. In IBTRA I have to present
myself to there about my practical experience at Mohakhali Branch. Then I got a price based on
my Branch performance and finally I got the internship certificate from IBTRA.

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