General Banking Operation of Shahjalal Islami Bank Limited.(Chapter-1)

1.1 Introduction:

In the backdrop of economic liberalization and financial sector reforms, a group of highly successful local entrepreneurs conceived an idea of floating Islamic banking system. For them, it was competence, excellence and consistent delivery of reliable service with superior value products based on ‘Islamic Shariah’. Lending money is the major part of a bank.The report basically focuses on General Banking Operation of Shahjalal Islami Bank Limited (SJIBL), Kawran Bazar Branch was established on 26^th September, 2004 as a private company. It has been converted to commercial operation in accordance with interest free Islamic Shariah based commercial bank on that day. More over this report will help me to understand the culture of work in a bank. I have mentioned all the things in the report whatever I have learned and have known from my internship in the Shahjalal Islami Bank Limited, Kawran Bazar Branch.

1.2 Background:

I have to prepare a report on the “General Banking Operation of Shahjalal Islami Bank Ltd.” for the partial fulfillment of the internship course of MBA program. In this report I will include what credit schemes are offering by the Shahjalal Islami Bank Ltd., and also function of General Banking, which will easily understandable to the readers.

Bank is the heart of the economics and banking is the blood circulation of country’s economic growth. Banks perform a significant role to serve the needs of the society in different sectors, such as: capital formation, large scale of production, industrialization, growth of trade and commerce etc. and banks are contributing a lot of aspect.

Shahjalal Islami Bank Bangladesh Limited has already emerged as one of the world wide recognized banks due to its retail product management which are part of general banking according to the principles of Islamic Shariah. Islamic banking is a new diminution of interest free banking where ‘Riba’ or interest is strictly prohibited. So I have tried to represent their performance and problems and prospects on the ground of general banking.

1.3 Objectivet:

The main objective of the report is to fulfill the requirement of MBA program. For this I had to attach with an organization and I chose SJIBL. For this I have some practical job related experience with my academic knowledge.

The objective of the study may be viewed as:

Broad objective
Specific objective

1.3.1. Broad Objective:

The general objective of this report is to complete the internship program and submit a report on General Banking operation on Shahjalal Islami Bank Limited, Kawran BazarBranch. As per requirement of MBA program of Bangladesh University of Business & Technology.

1.3.2. Specific Objective:

To present an overview of Shahjalal Islami Bank Limited.

A general description of the banking activities of Shahjalal Islami Bank Limited.
To submit a brief description about the General Banking Department and their activities.
To find out problems surrounding General Banking Operation activities of Shahjalal Islami Bank Ltd.
To suggest remedial measurement for the improvement of the whole process of the General Banking Department.

1.4 Scope of the Report:

The report will illustrate a basic reflection about the Shahjalal Islami Bank Limited present condition of the bank in private banking sector, various schemes of SJIBL, interest rate and activities, credit management system of SJIBL etc. Since I am working in the Shahjalal Islami Bank Limited, Kawran BazarBranch, I get the opportunity to gain knowledge of different part of banking system. I got the opportunity to work in all three divisions such as investment division, credit division, and foreign exchange division. And from these three different departments or divisions, I hope that I will be capable of doing these types of jobs in the future.

1.5 Methodology:

The report would be based on an exploratory research paper. Here I would be discussing the consumer credit schemes and credit appraisal procedure of Shahjalal Islami Bank and critically analyze the appraisal procedure with the standard one. Through out the report, I will use different type of research method to find out proper and correct information and also provide a good report.

For preparing this internee report I will basically use my experience from different department of the Shahjalal Islami Bank Limited. And I will also use some official documents provided by the officers. For adding more value to this report I will use some books or lecture specialized on the banking sectors.

Sources of data collection

1.5.1 Primary sources:

Observation of banking activities.
Fruitful conversation with the in-charge of the General Banking department of Shahjalal Islami Bank Limited, Kawran Bazar Branch.
Experiences gained during performing duties for General Banking department.
Discussion with officials of Shahjalal Islami Bank Limited.

1.5.2 Secondary sources:

Annual reports of Shahjalal Islami Bank Limited.
Various documents from General Banking department.
Different websites.
Internal Records.
Brochures of Shahjalal Islami Bank Limited.
Different circulars sent by Head Office and Bangladesh Bank.
Other published documents credit Scheme.

1.6 Limitation

On the way of my study in Shahjalal Islami Bank Limited, I have faced the following problems, which may be termed as the limitations of the study. The major limitations of this study are given as follows:

There were some restrictions to have access to the information confidential by concern authority.
I worked only on Kawran Bazar branch of Shahjalal Islami Bank Limited, so I gather knowledge about activities of Head Office only by reading/hearing not in practical way.
Sufficient records, publications regarding customer service were not available as per requirement.
Three-month is not sufficient time to gain practical knowledge and prepare a report.
The employees of the bank are so much busy so they cannot provide me to give information about the General Banking Department such as different types of loans and advances.
I have no proper experience to do this kind of report. So, inexperience creates obstacle to follow the systematic and logical research methodology.