General Banking System of First Security Islami Bank Ltd

Executive Summary

First Security Islami Bank Limited is one of the leading private sector banks in Bangladesh. Through its country wide branch network is providing comprehensive and competitive banking services to its valued customers. . This report had shown that part of activities of FSIBL. For the future planning and the successful operation for achieving its prime goal in this current competitive environment this report can be a helpful guideline.

First Security Islami Bank started its journey with a vision to develop itself as a modern Islami bank and to make effective contribution in national economy. At the same time it would work for sustainable growth to achieve trust of the stake holders for their money and share.

Besides the vision FSIB set its mission to build a customer caring and friendly banking environment. Modern Technology based fast and accurate service is its principle. Its function would be ethical and transparent at all levels. And its ultimate target is seamless growth for clients and positive contribution in national economy.

This report is presented in several parts in a sequential manner. At first, I have highlighted the brief of history of First Security IslamiBank , In the second part I discuss the organization profile. It also include banks mission, vision, and goal, retail banking service and corporate information. Product, Promotion, Pricing, Placing is the main part in this report.

From the practical point of view I can declare boldly that I really have enjoyed my internship at Fast security Islami Bank Limited in the first day. Moreover, internship program that is mandatory for my BBA program, although it is obviously helpful for my further thinking about my career.

 Introduction

My internship report is based on Bank. At first we need to know what is bank. “A bank is any business offering deposits subject to withdrawal on demand and making loans of a commercial or business nature”. There are different types of banks like commercial bank, investment bank, international bank etc.  My chosen bank is commercial bank. It is well reputed private bank in Bangladesh named “First Security Islami Bank Limited” (FSIBL). First Security Islami Bank Limited (FSIBL) was incorporated in Bangladesh on 29 August 1999 as a banking company under Companies Act 1994 to carry on banking business. It obtained permission from Bangladesh Bank (BB) on 22 September 1999 to commence its business. Banks provides the opportunity to its clients to deposit and lending money also at the same time attractive services are ensured as per the client’s needs wants & demand with the changing environment and competition. Activities of a bank permits to open & close accounts, issuing cheque books, remit funds, issue bank drafts, pay order, mail transfer, demand draft, receive cheque for clearing, FDR (Fixed Deposit Receipts)DBS(Double benefit Scheme) opening with attractive interest rate etc. It also includes the process of communicating, summarizing and explaining the economic events of a bank within a specific period of time.

Background of the report

Banking sector of the world is contributed in the present global economy. To establish a strong banking sector it is required to have good study in all operations of banking. For that we should do all of these operations step by step & obviously we must have to know about banking activities & transaction procedure of banking sector. Not only this, but also evaluation of performance to compare with other financial institution & taking corrective action has become compulsory for any bank. So, it is also applicable for FSBL to run with strong competition & to take proper action. I had been placed atMohakhali branch of First Security Islami Bank Limited in order to do my internship. The report is based on “E-Banking System”. I have been preparing this report under the guidance of Sonjoy Maitra, Assistant Professor of Dhaka International University.

 Significance of the Report

This Internship Report is an important partial requirement of four year BBA graduation program. This is because knowledge and learning become perfect when it is associated with theory and practice. By this Internship program students can establish contacts and networking. Contacts may help to get a job in practical life. That is, students can train and prepare themselves for the job market. A poor country like Bangladesh has an overwhelming number of unemployed educated graduates. As they have no internship experience they have not been able to gain normal professional experience of establish networking system, which is important in getting a job. Therefore, it is obvious that the significance of Internship is clearly justified as the crucial requirement of four year BBA graduation.

 Objectives of the Report

Objective is an important thing for different purpose. Objective helps to go in a good way which is related with the report. The main objectives of this study is to concentrate on the study of the how to use the marketing strategy in Banking sector. However the details of the objective of the study are as follows:

• To know about E-Banking
• To find out the strength, weakness, opportunity and threat of this bank.
• To apply theoretical knowledge in the practical field.
• To know the tasks of different department of the bank.
• To get understanding about the strategy that the bank undertakes in different situation.
• To get an idea aboutVarious kinds of Deposit at FSIBL.

Methodology of the Study

The study is performed based on the information extracted from different sources collected by using a specific methodology. This report is analytical in nature. The methodology is

Source of data

I have collected the data from the following sources, which has helped me to make this report.

The source divided into two parts:

1. Primary source.

2. Secondary source.

Primary

Interview was the basic technique that was employed to collect primary data from people within the organization. For the procedure of different banking operations, I had observed the operations and worked with the officers at the same time. I had interviewed FSIBL Officials for getting more information.

Secondary

Secondary data was collected from the annual report, journal, FSIBL report, FSIBL employee training, lecture sheet & the website of First Security Islami bank limited. Relevant data for this report will be collected primarily by direct investigations of different records, papers, documents, operational process and different personnel. The interviews were administered by formal and informal discussion. Structured questionnaire will be used. Information regarding office activities of the bank has been collected through consulting bank records and discussion with bank personnel.

Data sources

The information and data for this report have been collected from both the primary and secondary sources.

The “Primary sources” are as follows:

• Face-to-face conversation with the respective officers and stuffs of the branch and head office.
• Face-to-face conversation with clients visited the branch.
• Practical work experience in the different desk of the department of the branch covered.
• Questionnaire.

The “Secondary Sources” of data and the information are:

• Annual Report of FSIBL
• Website of the FSIBL.
• Various book articles regarding general banking functions, Foreign exchange operations and credit policies.
• Different procedure manual published by FSIBL
  • Different circular sent by head office or FSIBL

 Limitations of the Report

To complete all of these mentioned above, I face some limitations like:

  I am not getting enough time to concentrate on all of the investigation.

  I am not getting all data and information enough to do my study & that’s why sometimes I give emphasis on assumptions.

  The website of FSBL is not that much rich to collect data.

  Sometimes such kinds of tasks were given in the Bank that was no way related to my topic & really it was responsible to do and so that break my concentration in my major area of investigation.

  I am preparing the report on the activities of all of the branches, but I am not permitted & it is not possible to visit & collect data & information from all of the branches.

History of First Security Islami Bank Limited

The First security Islami Bank Limited is the third generation private sector Bank in Bangladesh. FSIBL is fully owned by Bangladeshi entrepreneurs. The bank was opened on August 29, 1999 but the first branch at 23, Dilkusha Commercial Area, Dhaka started commercial operation on August 29, 1999. The 2nd Branch was opened on 11 November 1999 at Khatungonj, Chittagong.

At present, FSIBL has been carrying on business through its 84 branches. FSIBL was the first domestic bank to establish agency arrangement with the world famous Western Union in order to facilitate quick and safe remittance of the valuable foreign exchanges earned by the expatriate Bangladeshi nationals. FSIBL was also the first among domestic banks to introduce international Master Card in Bangladesh. In the meantime, FSIBL has also introduced the Visa Card and Power Card. The Bank has in its use the latest information technology services of SWIFT and REUTERS. FSIBL has been continuing its small credit program for disbursement of collateral free agricultural loans among the poor farmers of Agrabad area in Chittagong district for improving their lot. Alongside banking activities, FSIBL is actively involved in sports and games as well as in various Socio-Cultural activities.

First Security Ialami Bank Limited is the leading private sector bank in Bangladesh offering full range of Personal, Corporate, International Trade, Foreign Exchange, Lease Finance and Capital Market Services. First Security Islami Bank Limited is the preferred choice in banking for friendly and personalized services, cutting edge technology, tailored solutions for business needs, global reach in trade and commerce and high yield on investments, assuring excellence in Banking Services.

Objectives of the Bank

The objectives of the FSIBL are given below

  To provide efficient computerized banking system.

  To ensure foreign exchange operations.

  To accept deposit on profit-loss sharing basis.

  To establish a welfare-oriented banking system.

  To play a vital role in human development and employment generation.

  To contribute toward balanced growth and development of the country through investment operations particularly in the less developed areas.

  To establish participatory banking instead of banking on debtor-creditor relationship.

Vision of the Bank

To be the unique modern Islamic Bank in Bangladesh and to make significant contribution to the national economy and enhance customer’s trust & wealth, equity investment, employee’s value & rapid growth in shareholder’s equity.

Mission of the Bank

The bank has chalked out the following corporate objectives in order to ensure smooth achievement of its goals:

• To be the most caring and customer friendly and service oriented bank.
• To create a technology based most efficient banking environment for its customers.
• To ensure ethics and transparency in all levels.
• To ensure sustainable growth and establish full value of the honorable shareholders and
• Above all, to add effective contribution to the national economy.

The Strategies of FSIBL

• To strive customers best satisfaction & win their confidence.
• To manage & operate the bank in an effective manner.
• To identify customer’s need & monitor their perception towards meeting those requirements.
• To review & updated policies, procedures & practices to enhance the ability to extend better customer services.
• To train & develop all employees & provide them adequate resources so that the customer’s needs reasonably addressed.
• To promote organizational efficiency by communicating company plans policies & procedures openly to the employees in a timely fashion.
• To ensure a congenial working environment.
• To diversify portfolio in both retail & wholesale markets.

Key Features of the Banking services:

a. Computerized Banking system

The head office and the other branches have been provided with the State-of-the-art computer hardware as well as software to carry on day-to-day accounting and routine work efficiently and quickly. The FSIBL is moving to the next stage of automation through introduction of on line banking in all branches.

b. SWIFT services    

• Quick transmittal of documentary credit and other financial messages
• Improve automation
• Transfer the found instantly
• Quick remittance
• Manage risks

c. ATM Banking

 First Security Islami Bank Ltd. has implemented successfully Automated Teller Machine (ATM) /DBDIT card transaction from June 25, 2008 . Through Automated Teller Machine (ATM) /Debit card, customer can avail the facilities like withdrawal money, balance inquiry and purchase goods from Point of sale (POS) using Dutch Bangla Bank Ltd. ATM Booth and POS.

Organizational structure of FSIBL

Functional oriented structure Organization structure plays an important role on the profitability of any organization. First Security Islami Bank Limited is a centralized organization. Its activities are designed on the basis of traditional banking business, such as credit, international division, investment, administration, and operation etc. FSIBL has a formal organizational structure that is highly specialized and centralized.

Organizational setup of the First Security Islami bank Limited is consisting of three organizational domains. Firstly the central top management, which contains Board of Directors, Managing Director, Additional Managing Director and Deputy Managing director, Major responsibilities of this are to take central decision and transmit it to the second step. Secondly, Central executive level management, which contains executive vice president, senior vice president, vice president and Assistant vice president. Major responsibilities of this part are to supervise and control division/ department. Thirdly,branch operation management, which contains branch manager and other mid/ lower level management. Major responsibilities of this part are to the 84 branches of this bank and report to the Head office from time to time.

 Organizational Structure of FSIBL

Corporate Information of FSIBL

Performance of FSIBL

First Security Islami Bank Limited closed the year 20011 recording significant growth in every sector despite volatile economic atmosphere of the country. During the year 2011 Deposit Mobilization, enhancement of loans and effective risk management has placed the bank in sound footings. Besides, Bank has maintained a strong market position by adding value to the shares.

This has been appreciable improvement in the performance of the bank in all respect. Such as, there has been a noticeable rise in deposits as advanced as also in foreign exchange business. Profit of the bank witnessed a marked up trend from Tk 12.17 crore in 2002 to Tk 22.12 crore in 2003 showing a rise of 74.04 percent. All this have been possible due to the pursuit of pragmatic and prudential policies in overall management of the bank under the able the guidance of the board of directors. As a part of prudential policies provision has been made for bad and doubtful loans to the tune of Tk 8.64 crore against loan classified during 2003.

The total deposit of the bank increased sharply by 32.81 percent from Tk 42,432.09million at the end of 2008 to Tk 56,344.10 million at the end of 2010.

 Management Structure of FSIBL

For any financial and non financial organization Management is the most valuable and important resources of any kind of organization. And a well-organize management provides the organization to reach its ultimate goal. Management means planning, organizing, staffing, directing and controlling of all financial and non financial resources of an organization. Different aspects of management practice in FSIBL are discussed below.

Planning:

FSIBL has done its planning within the purview of the corporate plan. The overall planning approach of FSIBL is Top-down. Each branch can plan according to the goal imposed by the corporate level. It doesn’t plan independently. And, FSIBL has a planning division. This department is mainly responsible for the overall planning.

Organizing

Organizing of the First Security Islami Bank Limited is based on Departmentalization. The organization is divided into twelve departments headed by Executive vice President or Senior Vice President. In the First Security Islami Bank Limited the whole operation is centralized and authority is delegated by written guidelines. These guidelines are:

Operational manual approved by Head Office, where each aspect or banking operation is elaborately defined.

• Advance manual including advances limit for different management level.
• Bad and doubtful recovery manual.
• Code of conduct.
• Foreign banking guidelines.
• Central bank directives.

Staffing

The recruitment of FSIBL is done in three ways. One as a “probationary officer” for the management program and it has probation period of one year. Second way of recruitment is to recruit non-probationary officer who joins as an assistant officer. The career path of an assistant officer is lengthier than probationary officer. The third way of recruitment is recruitment of staff and sub-staff such as typist, messenger, driver, guard, attendant, cleaner and other lower level positions. Promotion policy of FSIBL is basically based on seniority basis. Sometimes, employees are promoted to the higher position for their outstanding performance. However, it is found that the average length of a position held by an employee is around five years.

 Directing and controlling

The management approach in FSIBL is top-down or authoritative. Information just seeks through lower management layer. Works are designed in such a way that cannot leave without clearing the tasks as he is assigned for a day. Sitting Management in all office is done in way that the superior can monitor the subordinate can all time. Budgeting, rewarding, punishing etc. are also practiced as control mechanism.

Human resource Practices in FSIBL

Employees are the core resources of any organization. Without them, one cannot run their organization. And, human resource is concerned with the growth and development of people toward higher level of competency, creativity and fulfillment. It help employees become better more responsible person and then it tries to create a climate in which they contribute to the limits of their improved abilities. It assumes that expanded capabilities and opportunities for people will lead directly to improvements in operating effectiveness. Essentially, the human resource approach means that people achieve better result.

 Recruitment

The set-vice rule of FSIBL states the recruitment policy of the bank. In general the board of directors determines the recruitment policy of bank from time to time. The minimum entry level qualification for any official position other than supportive management is a Bachelors degree. However, informally the management prefers a minimum master’s degree or BBA degree for the appointed of probationary officers in the Executive officer position. The recruitment for entry level positions begins with a formal written test. After successful completion of the written test, a personal interview is conducted for the successful candidates by a panel of experts comprising of renowned and prominent bankers of the country.

 Management Efficiency 

Senior Management

FSIBL is functioning with a highly professional management team headed by the Managing Director Mr. A. A. M. Zakaria. Among other senior executives currently Two DMD, One Principal (Training Center), Two SEVP, six EVP, Seven SVP, Eleven VP, Nine FVP, fifteen SAVP, sixteen AVP and eighteen FAVP are discharging their services in progression of the banks business.

 Managing Director

Mr. A. A. M. Zakaria, Managing Director of the bank is an eminent banking personality having long 33 years of experience in banking industry. After successful completion of his B.A. (Hons), M.A. in Economics from DhakaUniversity, Mr. A. A. M. Zakaria has started his banking career in 1977 as Senior Officer of Rupali Bank. Before the current responsibility, Mr. A. A. M. Zakaria was the Deputy Managing Director of Dutch-Bangla Bank Limited. In his multi-greeted banking service, Mr. A. A. M. Zakaria participated in many courses, training program and workshops on banking at home and abroad. Mr. A. A. M. Zakaria joined in FSIBL on 7th August 2005 as Managing Director.

Top management of the bank is supported by human resource strength of around 1200 executives and officers. For smooth functioning of the Bank, following committees have been formed:

Management committee (MANCOM) comprises of senior members of the management headed by Managing Director of the bank. Head of HRD is the member secretary of the committee and Head of IMRD, Head of IC&C including DMD are the member of the committee. MANCOM meets on regular basis to discuss relevant agenda.

Asset Liability Management Committee (ALCO) headed by the Managing Director, is responsible for balance sheet risk management. The committee participate in the monthly ALCO meeting and review the liquidity position, review rate of interest on deposit and lending, and review the ALCO papers on presentation by treasury back office on the position of profit, deposit, investment, cost analysis, maturity bucket of deposit & investment, balance sheet, profit and loss account and many other issues relating to banks business and assets-liability management. Five relevant divisional heads including DMD are the members and VP & Head of Treasury of the Bank is the member secretary of the committee.

Human Resources Development

FSIBL has a separate Human Resources Division (HRD) to manage the employee policies and practices. As on FYE 2010, Total 1200 executives & officers of the bank have been working for smooth banking operations. Bank follows a standardized human resources policy. HRD of the Bank follow a transparent and free & fair system to ensure the standard recruitment, training & development of human resources of the bank. The bank has defined HR policies including recruitment, training & development, promotion, leave, transfer and disciplinary action policy. Usually internal recruitment procedures are considered to fill up the mid and top management positions, while entry-level positions are filled with regularly through competitive recruitment exams. They follow transparent, well-defined and strict rules for appointment of officers and staff in the Bank’s service.

Corporate Governance

Corporate governance is about how corporation is running its operations to achieve its corporate objectives. Bangladesh Bank (BB) gives emphasis on implementing corporate governance among the financial institutions and to do that, BB emphasises implementation of the guidelines issued by them for improving corporate governance in banking. Good Corporate Governance practices enhance an entity’s corporate image and market credibility, which attract capital and increase its borrowing power. These can be reflected in the quality of financial reporting and disclosures; strength of internal control system and internal audit function induction of professionally competent, independent non-executive Directors on corporate Board; formation of Audit Committee; delegation of authority to executives and staff; protection of corporate governance for strengthening organizational strength. With a view to ensure effective participation and deep interest in the affairs of the company and as per Articles of Association of the Company and as per Bangladesh Bank Circular No. 16 dated March 24, 2003 the bank has set up the following 2 committees:

1. Executive committee
2. Audit Committee

        i.            Executive Committee:FSIBL has constituted 09 members executive committee of the board as per Bangladesh Bank guidelines to ensure corporate goverance in the business of which managing director of the Bank is Ex-officio Member. The executive committee of the board are responsible for developing policy and strategy for smooth operations of business and business development of the bank to ensure maximization of shareholders wealths protecting other stakeholders interest in the company Mr. Alhaj Md. SaifulAlam, Chairman of the board of Directors is the Chairman of the present Executive Committee of the bank. He is very dynamic person and leading the executive committee of the bank in a very manner. 

      ii.            Audit Committee:FSIBL has formulated an audit committee can play an effective role in formulating an efficient and secured banking system. The Audit Committee has been formed comprising three members of the Board of Directors. As per corporate governance guidelines the Chairman of the Audit Committee should have sound knowledge and expertise in finance & accounting or auditing.

Information Technology Division

First Security Islami Bank Ltd. has an Information Technology (IT) Division at the head office to provide IT support to all its branches. The bank has well documented guideline on information and communication technology (ICT). From the very beginning FSBL was using computerized banking software “PcBank/M” for all the branches. Recently the bank has replaced PcBank/M software with “PcBank2000” to provide online banking facilities to its clients. FSIBL is now providing online banking facility with distributed system. The bank also has SMS banking service. FSIBL has planned to introduce centralized system for online banking.

Loans & Advances

The profit of a commercial bank depends primarily on the utilization of its fund. But Bank cannot lend its fund fully. As per Banking Company Act 1991 every banking company has to maintain a specified minimum (presently 16%) of the total of its demand and time liabilities in the form of cash and approved securities with Bangladesh Bank. This percentage or ratio is termed Statutory Liquid Ratio. Further every scheduled bank has to maintain with Bangladesh Bank an average daily balance, the amount of which has not to be less than a particular percentage (presently 4%) of the total of its demand and time liabilities. As such Commercial Bank generally goes for short-term finance although a small portion of its total deposit is invested as long term lending. Commercial banks allow different forms of advance.

 Foreign Exchange

Bank gives paramount importance in its foreign exchange business to ensure profitability. Bank has been continuing to extend special importance on foreign business from the beginning of its establishment which is still prevailing during the year. To look after the business and also to ensure prompt service to the import and export officers having exposure and expertise in foreign exchange, posted both Head Office and Authorized Dealer branches.

Core values

FSIBL score values consist of 6 key elements. These values bind our people together with an emphasis that our people are essential to everything being done in the bank.

Integrity

• FSIBL protects & safeguards all customer information.
• FSIBL treats everyone in an equitable & consistent manner
• FSIBL creates an environment which earns & maintains customer trust.

 Open communication

• FSIBL builds customer relationships on integrity &respect.
• FSIBL offers a full line of products &excellent service.
• FSIBL is committed to the prosperity of the customers & shareholders.

 Performance driven

• In FSIBL customers & employees are judged in terms of their performance.

Continuous self-Improvement

• Continuous learning self –challenge &strive make ways for self-improvement of work force at FSIBL.

 Quality

• FSIBL offers hassle free better service timely.
• FSIBL builds-up quality assets in the portfolio.

Teamwork

Interaction, open communication, and maintaining a positive attitude reflect FSIBL s commitment to supportive environment based on teamwork.

 Special Features of FSIBL

• 0otion of rural areas to ensure a balance development of the country.

Products

Product & Services OF FSIBL

The bank serves all types of modern, progressive and dynamic business as well as banking services to the customers of all strata of society .During the short span of time, the bank has been highly recognized and praised by the business community, from small entrepreneurs to enlarge traders and industrial conglomerates, and emerged as the fastest growing among the third generation banks in respect of business and profitability. It has already open 84 branches in different commercially important places throughout the country to make its services available to the people.

First Security Islami Bank Limited successfully marked its products designed to fulfill the needs of various socio-economic strata .Attractive feature of the products have given a distinctive image among the private banks. They has been making continuous endeavor to offer new products and services .In the memorandum and articles of association of the First Security Islami Bank is revised its area of operation is clearly written. The product of FSIBL is targeted to fulfill that aim. The product and services that are currently available are given below:

 The products of FSIBL

Performance of Top 5 FSIBL Products: (Mohakhali Branch)

Amount of Various kinds of Deposit at FSIBL

(Last Four Years)

Amount of Various kinds of Deposit at FSIBL

(Last Four Years)

From the above table we can see that People are very interested about Mudaraba term deposits including other banks among various Depository Schemes. The amount of Mudaraba deposits under schemes is increasing year by year. It is noticeable that the amount of Al-Wadia current accounts and other deposit accounts was increased in a great amount by 2010. The amount of Mudaraba savings bank deposits of this bank is not in satisfactory level compare to others.

The Scenario of Deposit at First Security Islami Bank:

Source: Annual Report of FSIBL

The amount of deposit has been increased in each year. In 2009, the total amount of deposit was approximately Tk. 4242.31 Crore has raised up to above approximately  Tk. 56,34.50 Crore  by the year 2010 and approximately 60,61.58 crore in 2011 (March). So, there is a positive increasing rate of the total deposit.

Investment Product of FSIBL

 Loans & Advances

1. Term Loan
2. Loan BaiMuajjal (General)
3. Secured Overdraft (SOD)
4. Transport Loan
5. Cash Credit (C.C)
6. HouseBuilding Loan
7. Payment Against Document (PAD)
8. Loan against Trust Receipts (LTR)
9. Loan against Imported merchandise (LIM)
10. Consumer Finance Scheme
11. Hire-Purchase Scheme

Deposits service of FSIBL

 Education Saving Scheme

The most gratifying experience for parents are proper education of their children. Educational expense is rapidly increasing and therefore appropriate planning needs to be done by all parents. FSIBL offers you “Education Saving Scheme” to assist in financial planning well ahead in for there children’s higher education.

 Mudaraba Monthly Income Scheme.

Bangladesh is a developing country. But in our country opportunity of is very low. People of our country always try to save their excess money and they are looking for where they can deposit the money. According to their demand FSIBL started this monthly income scheme.

Mudaraba Super Savings Scheme

Saving helps to build up capital and is the prime source of business investment in a country. Investment takes the country towards industrialization, which eventually creates wealth. That is why savings is treated as the very foundation of development. To save, FSIBL offers Super Saving Scheme.

Terms and Conditions of the scheme:

  Any individual, company, educational institution, government organization, NGO, trust, society etc may invest their savings under this scheme.

  The deposit can be made in multiples of Tk. 10,000/=

  The period of deposit is for six years.

  Any customer can open more than one account in a branch in his name or in joint names. A deposit receipt will be issued at the name of opening the account.

  If the deposit is withdrawn before six years terms, then savings interest rate +10% will be applied before payment is made. However, no interest will be paid if the deposit is withdrawn within 1^st year.

  A depositor can avail loan up to 80% of the deposited amount under this scheme.

  Incase of death of the depositor, before the term, the deposit (with saving rate +1%) will be given to the nominee. In the absence of nominee, the legal heirs/successors will be paid on production of succession certificate.

  Incase of issuing a duplicate deposit receipt the rules of issuing duplicate receipt of term deposit will be applicable.

MudarabaMultiplus Savings Scheme

Saving helps to built up capital and capital is the prime source of business investment in a country. Investment takes the country towards industrialization that eventually crates wealth. That is why savings is treated as the very foundation of development. To create, more awareness and motivate people to save, FSIBL offers Multi Plus Savings Scheme.

Some examples are given in the table below. Any amount can be deposited in multiples of Tk. 10,000/=

 Mudaraba Monthly Savings Scheme

The savings amount is to be deposited within the 10^th of every month. Incase of holidays the deposit amount is to be on the following day. The deposit may also be made in advance.

The depositor can have a separate account in the bank from which a standing instruction can be given to transfer the deposit in the scheme’s account.

Incase the depositor fail to make the monthly installment in time, then 5% on overdue installment amount will be charged. The charge will be added with the following month(s) installment and the lowest charge will be Tk. 10/=.

 Rules

A form has to be filled at the time of opening the account. No introduction is attested photographs are advised.

  The depositor can select any of the installment amounts, which cannot be subsequently changed.

  Incase of minors the guardians may open and supervise the account in this favor.

  A single person can open more than one account for saving under several interest rates.

  The depositor should notify the bank immediately on any change of address.

  The government tax will be deducted from the interest accumulated in this scheme.

  If necessary, at the request of the depositor, the scheme can be transferred to a different branch of the same bank.

  The bank reserves the right to change the rules and regulations of the scheme as and when deemed necessary.

 Mudaraba Hajj Scheme

Ninety percent of people in our country are Muslim. Hajj is mandatory of every rich and physically fit Muslim people. As aIslami Bank FSIBL offer Hajj Scheme to the customer to fulfill the desire of religious minded people. One can open this type of scheme in different maturity by paying monthly installment.

Investment service of FSIBL Ltd.

 Izara Bill Baia (General)

Short term, medium term & long term investments allowed to individual/ firm/industries for a specific purpose but for a definite period and generally repayable by installments fall under this head. These types of lending are mainly allowed to accommodate financing under the categories.

1.              I.      Large & Medium Scale Industry and
2.           II.      Small & Cottage Industry.

Very Often Terms Financing for

1.              I.      Agriculture &
2.           II.      Others are also included here.

Features:

  The Islamic Shariah principle of investment under Izara Bill Bia is MusharakaMutanakasha, which means the rent, shall be devisable as per equity involved, unpaid rent if any shall not be treated as equity and the asset shall be acquired on participation ownership.

  Possession of the asset shall be passed on to the client for use as per practicability.

  Bank shall retain the ownership till payment of equity portion of the bank along with rental.

  The ownership of the asset shall gradually pass on to the client upon payment of bank’s equity involved and on the reverse upon increase of client’s equity.

 Izara Bill Baia (HB)

Investment allowed to individual/enterprises for construction of house commercial fall under this type of investment. The amount is repayable by monthly installment with a specified period. Such investment is known as Izara Bill Bia (HIB). No investment for construction of residential house building shall be accommodated to the banks customer where is no other business consideration.

Izara Bill Baia (Staff HB)

Investment allowed to our bank employees for purchase/construction of house shall be known as investment (Staff HB).

 Bai-Muajjal (BAIM)

It is a mode of investment under which the bank at the instance of the client procures certain goods permissible under Islamic Shariah and the law of the country and sells those to the client at a price payable at a fixed future date in lump sum or in fixed installments and the goods are delivered in advance and the fixed price is paid later or as agreed by the parties.

Important Features

  Goods are to be purchased from a third party excluding sister concern(s) of the client.

  Ownership of bank on the goods be established at least for a single moment before selling the same to client.

  Like Murabaha, bank is not bound to declare cost of goods and profit mark up separately.

 Murabaha

Financial accommodation to individual/firm for trading as well as for wholesale or to industries as working capital against pledge of goods as primary security fall under this head of investment. It is also a continuous investment and like the above allowed under the categories.

1.              I.      Commercial Lending
2.           II.      Working Capital

Bai-Murabaha Investment

Bai-Murabaha may be defined as a contract between a buyer and seller under which the seller certain specific goods permissible under Islamic Shariah and the law of the land to the buyer at a cost plus agreed profit payable in cash or an any fixed future date in lump sum or by installments. The profit marked-up may be fixed in lump sum or any percentage of the cost price of the goods.

a. Ordinary BaiMurabaha

If there are only two parties, the seller and the buyer, where the seller as an ordinary trader purchases the goods from the market without depending on any order and promise to buy the same from him and sells those to a buyer for cost plus profit, then the sale is called ordinary Bai-Murabaha.

b. Bai-Murabaha on order and promise

If there are three parties, the buyer, the seller and the bank as an intermediary trader between the buyer and the seller, where the bank upon receipt of order from the buyer with specification and a prior outstanding promise to buy the goods from the bank, purchases the ordered goods and sell those to the ordering buyer at a cost plus agreed profit, the sale is called “Bai-Murabaha on or promise”, generally known as Murabaha.

 Izara Bill Baia (HP)

Izara Bill Baia (HP) is a type of installment investment under which the purchaser agrees to take the goods on hire at a stated rental, which is inclusive of the repayment of principal as well as profit for adjustment of the investment within a specified period.

 Izara (LF)

Izara (LF) is one of the most convenient sources of acquiring capital machinery and equipment whereby a client is given the opportunity to have an exclusive right to use an asset usually for an agreed period of time against payment of rent. It is a term financing repayable by installment.

 House Hold Durable Scheme (HDS)

It is a special investment scheme of the bank to finance purchase pf consumer durable to the fixed income group to raise their standard to living. The customers allow the investments on soft terms against personal guarantee and deposit of specified percentage of equity. The investment is repayable by month installment within a fixed period.

 Bai-Muazzal (General/FO)

Investment allowed to individual/firms against financial obligation (i.e lien of MTDR/PSP/BSP/Insurance Policy/Share etc.) This may not be a continuous investment.

 Bai-Muazzal (WO)

Investment allowed against assignment of work order for execution of contractual work falls under this head. This investment is generally allowed for a definite period and specific purpose i.e. it is not a continuous investment.

Bai-Muazzal (Export)

Investment allowed for purchasing foreign currency for payment against L/Cs (Back to Back) where the exports do not materialize before the date of import payment. This is also investment for temporary period, which is known as export finance and falls under the category “Commercial Lending”.

 Murabaha Import Bills (MIB)

Payment made by the bank against lodgment of shipping documents of goods imported through L/C falls under this head.

It is an interim investment connected with import and is generally liquidated against payment usually made by the party for retirement of the documents for release of imported goods from the customs authority. It falls under the category “Commercial Lending”.

Murabaha Post Import (MPI)

Investment allowed for retirement of shipping documents and release of goods imported through L/C taking effective control over the goods by pledge in godown under bank’s lock & key fall under this type of investment. This is also a temporary investment connected with import is know as post import finance and falls under the category “Commercial Lending”.

 Other Services

 Online Banking: FSIBL have set up Wide Area Network through Radio, Fiber-Optics & other available communication media systems to provide any branch banking to our customers. Customer of one branch is now able to deposit and withdraw money at any of our branches. All Branches are included in our Wide Area Network.No TT/DD or cash carrying will be necessary.

 Debit Card

The Bank has launched Master card among its customers in joint collaboration with DBBL Bank Ltd.

FSIBL’s card is accepted at more than 5000 outlets spread around the country; this card can be used in purchase of everyday necessities to luxurious goods and services. This wide range of merchants include hotels, restaurants, airlines, travel agents, departmental stores, hospitals, clinics & diagnostic centers, jewelry shops, electronic shops, health clubs any many more. Numbers of outlets are increasing day by day to cater to growing needs.

FSIBL card provides cash withdrawal facility up to 50% of your credit limit; this may be availed from ATM or from any branches of FSIBL Ltd. With a nominal cash withdrawal charge.

 ATM Banking: First Security Islami Bank Ltd. has implemented successfully Automated Teller Machine (ATM)/DBDIT card transaction from June 25, 2008. Through Automated Teller Machine (ATM) /Debit card, customer can avail the facilities like withdrawal money, balance inquiry and purchase goods from Point of sale (POS) using Dutch Bangla Bank Ltd. ATM Booth and POS.

 SMS Banking: First Security Islami Bank Ltd. has officially launched SMS banking service from December 17, 2007. By sending one SMS from mobile phone client can able to know the information like what is the balance, interest rate etc.

 Locker Service: For safekeeping of customer’s valuables like important documents and goods like jewelries and gold ornaments, FSIBL Locker Service is available in most of the Branches in urban areas.

            Nature of service         Custody of Locker / Safe

            Nature of Charge        Rent

 Locker Available Branch:

Dhaka Division           : Dhanmondi, Banani, Gulshan, Mirpur

Chittagong Division    : Agrabad, ProbartakMor

Khulna Division          :  Khulna branch

Shylet Division           : Sylhet branch, Biswanath

Utility Bills: Utility bills received from following branches:

Ready Cash Card Service: The bank has been operating what is called First Security Bank Ready Cash Card under an agreement with American International (BD) Ltd. By using this card the customers are able to deposit/withdraw money from any branch of the Bank as also from some selected branches of Janata Bank (JB). The card holders can pay telephone, water, electricity, gas bills and use it to make purchases from 300 selected retail shops. The Bank is also actively considering introduction of credit cards in collaboration with one of the international card companies. In this regard permission to be solicited from Bangladesh Bank.

 Miscellaneous Products

From the very inception First Security Islami Bank emphasized on modern techniques in banking. So it didn’t make any delay to start online banking. Now its almost all of 84 branches are connected online. FSIB provides SMS banking opportunity for its clients.

First Security Islami Bank presents all its products and services to its clients after thorough scrutiny of the Shari’ah Board. So everything goes in compliance with Islamic Laws.

Promotion

FSIBL Promote 9 new Products

First security islami bank Limited was Promoted following 9 (Nine) New products from the first week of July 2011.

Mudarabah student (school banking) savings account

FSIBL requested all branches to select at least 1 school in their Working Area to launch School banking. Features:

• To buildup savings habit and familiarize new generation with banking system.
• Minimum account opening deposit TK. 100.
• No minimum balance required to maintain.
• (+-) 8% profit is applicable daily basis for this account.
• Account holder will receive an ATM card at free of cost.
• Free one time Cheque book.
• Account holder may pay tuition fees through the accounts.

 Mudarabah Education Deposit Scheme.

      Features:

• Installments can be deposited in any branch & any working day of the months                                          without any late fees.
• Size of monthly installments are TK. 5oo/-, TK. 1000/-, TK 2000/-, TK. 2500/-, TK. 5000/-, TK. 10000/-, TK. 15000/-, TK. 20000/- TK. 25000/-.
• Maturity periods are 5, 8, 10, 12 or 15 years.
• Investment facilities against deposit.
• TK. 100,000/- (one Lac taka ) only life insurance facility.

Mudarabah Marriage Deposit Scheme.

      Features:

• Installments can be deposited in any branch & any working day of the months                                          without any late fees.
• Size of monthly installments are TK. 5oo/-, TK. 1000/-, TK 2000/-, TK. 2500/-, TK. 5000/-, TK. 10000/-, TK. 15000/-, TK. 20000/- TK. 25000/-.
• Maturity periods are 5, 8, 10, 12, 15 & 20 years.
• Investment facilities against deposit.
• TK. 100,000/- (one Lac taka ) only life insurance facility.

 Mudarabah Health Care Deposit Scheme.

Features:

• Installments can be deposited in any branch & any working day of the months                                          without any late fees.
• Size of monthly installments are TK. 5oo/-, TK. 1000/-, TK 2000/-, TK. 2500/-, TK. 5000/-, TK. 10000/-, TK. 15000/-, TK. 20000/- TK. 25000/-.
• Maturity periods are 3, 5, 8, & 10 years.
• Investment facilities against deposit.
• TK. 100,000/- (one Lac taka ) only life insurance facility.

 Mudarabah Pension Deposit scheme.

Features:

• Installments can be deposited in any branch & any working day of the months                                          without any late fees.
• Size of monthly installments are TK. 5oo/-, TK. 1000/-, TK 2000/-, TK. 2500/-, TK. 5000/-, TK. 10000/-, TK. 15000/-, TK. 20000/- TK. 25000/-.
• Maturity periods are 5, 10, 15 & 20 years.
• Investment facilities against deposit.
• TK. 100,000/- (one Lac taka ) only life insurance facility.

Mudarabah Senior Citizen Savings Account.

Features:

• A savings accounts for senior citizen aged 60 years or above.
• (+-) 7% profit is applicable for this account.
• Profit will add on daily basis and will be credited monthly.
• Minimum account opening balance is TK. 5,000.
• Free ATM Card.
• Free SMS Banking.
• 100 leafs cheque book free.
• 20% discount on locker charges (applicable for branches having locker facility) subject to availability.                                                                                      

*Condition Apply.

 Mudarabah Salary Account.

Features:

• Individual account for employees of different Corporate houses for disbursements of their monthly salary.
• The organization needs to have a minimum of  10 employees and a payout of TK 1,00,000/- (One Lac Taka) per month and an average salary per employee of TK.10,000/- per month.
• (+-) 7% profit is applicable for this account.
• No account Maintenance fees.
• No minimum balance required.
• Investment facility at preferential rates (Personal Loan. Home Lone. Auto Lone).
• Free SMS Banking.
• 100 leafs cheque book free.
• Free ATM Card.

*Condition Apply.

 Al-Wadeeah Current Plus account.

Features:

• Freedom of unlimited transactions.
• Minimum account opening balance requirement is BDT 15,000/-.
• Free intercity Transaction.
• Free ATM Card.
• 100 leafs cheque book free.
• Free SMS Banking.
• TK. 100,000/- (one Lac taka ) only life insurance facility.

*Condition Apply.

 Al-Wadeeah Premium Account.

Features :

• Freedom of unlimited transactions.
• Minimum account opening balance requirement is BDT 15,000/-.
• Free intercity Transaction.
• Free ATM Card.
• 100 leafs cheque book free.
• Free SMS Banking.
• Special Counter.
• TK. 100,000/- (one Lac taka ) only life insurance facility.

*Condition Apply.

After the promotion of 9 new products (July, 2011),The result of total number of accounts. (March, 2012)

Pricing

 Pricing rate of Products

 Mudaraba Monthly Deposit Scheme (MMDS):

Mudaraba Monthly Deposit Scheme (MMDS) is the top deposit opening accounts in FSIBL.

 The facilities are giving below:

• TK. 100,000/- (one Lac taka ) only life insurance facility
• The Interest/ Profit rate are given below:

 Total benefits in this term are giving below:

Mudarabah student (school banking) savings account:

To buildup savings habit and familiarize new generation with banking system FSIBL launch School banking.

• Minimum account opening deposit TK. 100.
• No minimum balance required to maintain.
• (+-) 8% profit is applicable daily basis for this account.

 Mudarabah Education Deposit Scheme:

The most gratifying experience for parents are proper education of their children. Educational expense is rapidly increasing and therefore appropriate planning needs to be done by all parents. FSIBL offers you “Education Deposit Scheme” to assist in financial planning well ahead in for their children’s higher education.

• The Interest/ Profit rate are given below:

 Total benefits in this term are giving below:

Mudarabah Marriage Deposit Scheme

FSIBL arrange Mudarabah Marriage Deposit Scheme to the people who are able to get married his own cost. The Facilities are:

• Investment facilities against deposit.
• TK. 100,000/- (one Lac taka ) only life insurance facility.

• Installments can be deposited in any branch & any working day of the months                                          without any late fees
• The Interest/ Profit rate are given below:

• Size of monthly installments are TK. 5oo/-, TK. 1000/-, TK 2000/-, TK. 2500/-, TK. 5000/-, TK. 10000/-, TK. 15000/-, TK. 20000/- TK. 25000/-.
• Maturity periods are 5, 8, 10, 12, & 15 years.

 Total benefits in this term are giving below:

 Mudarabah Health Care Deposit Scheme:

Health is wealth, Soto create, more awareness and motivate people to save, FSIBL offers Mudarabah Health Care Deposit Scheme.The Facilities are:

• Installments can be deposited in any branch & any working day of the months                                          without any late fees.
• Size of monthly installments are TK. 5oo/-, TK. 1000/-, TK 2000/-, TK. 2500/-, TK. 5000/-, TK. 10000/-, TK. 15000/-, TK. 20000/- TK. 25000/-.
• Maturity periods are 5, 8, & 10 years.
• Investment facilities against deposit.
• TK. 100,000/- (one Lac taka ) only life insurance facility.
• The Interest/ Profit rate are given below:

 Total benefits in this term are giving below:

 Mudarabah Pension Deposit scheme:

The Facilities ofMudarabah Pension Deposit scheme are:

• Installments can be deposited in any branch & any working day of the months                                          without any late fees.
• Size of monthly installments are TK. 5oo/-, TK. 1000/-, TK 2000/-, TK. 2500/-, TK. 5000/-, TK. 10000/-, TK. 15000/-, TK. 20000/- TK. 25000/-.
• Maturity periods are 5, 10, 15 & 20 years.
• Investment facilities against deposit.
• TK. 100,000/- (one Lac taka ) only life insurance facility.

Mudarabah Senior Citizen Savings Account.

The Facilities of Mudarabah Senior Citizen Savings Account are:

• A savings accounts for senior citizen aged 60 years or above.
• (+-) 7% profit is applicable for this account.
• Profit will add on daily basis and will be credited monthly.
• Minimum account opening balance is TK. 5,000.
• Free ATM Card.
• Free SMS Banking.
• 100 leafs cheque book free.
• 20% discount on locker charges (applicable for branches having locker facility) subject to availability.

Mudarabah Salary Account

The Facilities ofMudarabah Salary Account are:

• Individual account for employees of different Corporate houses for disbursements of their monthly salary.
• The organization needs to have a minimum of  10 employees and a payout of TK 1,00,000/- (One Lac Taka) per month and an average salary per employee of TK.10,000/- per month.
• (+-) 7% profit is applicable for this account.
• No account Maintenance fees.
• No minimum balance required.
• Investment facility at preferential rates (Personal Loan. Home Lone. Auto Lone).

Al-Wadeeah Current Plus account.

The Facilities of Al-Wadeeah Current Plus account are:

• Freedom of unlimited transactions.
• Minimum account opening balance requirement is BDT 15,000/-.
• Free intercity Transaction.
• Free ATM Card.
• 100 leafs cheque book free.
• Free SMS Banking.
• TK. 100,000/- (one Lac taka ) only life insurance facility.

Al-Wadeeah Premium Account

• The Facilities of Al-Wadeeah Premium account are:

• Freedom of unlimited transactions.
• Minimum account opening balance requirement is BDT 15,000/-.
• Free intercity Transaction.
• Free ATM Card.
• 100 leafs cheque book free.
• Free SMS Banking.
• TK. 100,000/- (one Lac taka ) only life insurance facility.

SWOT Analysis of FSIBL Ltd.

 SWOT Analysis of FSIBL Ltd.

SWOT analysis is the detailed study of an organization’s exposure and potential in perspective of its strengths, weakness, opportunity and threat. This facilitates the organization to make their existing line of performance and also foresee the future to improve their performance in comparison to their competitors. As though this tool, an organization can also study its current position, it can also be considered as an important tool for making changes in the strategic management of the organization.

Organisations often think the way to measure customer satisfaction is to examine the number of customer complaints. The problems with this method is that it is reactive, it only responds (if at all) after the event and it does not really measure satisfaction only dissatisfaction. Monitoring complaint levels does not really tell if the customers are any more or less satisfied with the product or service.

In the competitive arena of marketing era SWOT analysis is a must based on Product, Price, marketing policies of a financial institute like private bank. From the SWOT analysis we can figure out ongoing scenario of the bank.

Strengths

Bank reputation

FSIBL ltd. has already established a favorable reputation in the banking industry of the country. Within a period of 9 years, bank has already established a firm footing in the banking sector having tremendous growth in the profits and deposits. All these have leaded them to earn a reputation in the banking field.

 Islamic banking Concept

As we are an Islamic Nation our major deals want to follow the Islamic rules and regulations. FSIBL always follows the Islamic rules. And it always helps the bank to attract the new and existing clients.

 Sponsors

FSIBL ltd. was founded by a group of well-known entrepreneurs of the country having sufficient financial strength. The sponsor directors belong to prominent resources persons of the country. The Board of Directors headed by its Chairman Alhaj Md. SaifulAlam. Therefore, FSIBL has a strong financial strength and it built upon a strong foundation.

 Top Management

The top management of the bank is also major strength. The top management officials have all worked in reputed banks and they are very experienced in the banking sector, skills, expertise will continue to contribute towards further expansion of the bank. At FSIBL Ltd. the top management is the driving force and the planning of the organization where policies are crafted and often cascaded down.

 Facilities and equipment

FSIBL ltd. has adequate physical facilities and equipments to provide better services to the customers. The bank has computerized and online banking operations under a software. Counting machines in the teller counters have been installed for speedy service and the cash counters. Computerized statements for the customers as well as for the internal use of the banks are also available.

Modern branches

This creates a positive image in the minds of the potential customers and many people get attracted to the bank. This is also an indirect marketing campaign for the bank for attracting customers. All branches of the bank are impressive and are compatible to foreign banks.

Team work at mid level and lower level

At FSIBL Ltd. have mid level and lower level management, there are often team works. Many jobs are performed in groups of two or three in order to reduce the burden of the workload and enhance the process of completion of the job. People are eager to help each other and people in general are devoted to work.

Interactive corporate culture

FSIBL ltd. has an interactive corporate culture. Unlike other local organization, its work environment is very friendly, interactive and informal. There are no hidden barriers or boundaries while interacting among the superior or the subordinate. The environment is also lively and since the nature of the banking job itself is monotonous and routine, FSIBL. is likely work environment boosts up the spirit and motivation of the employees.

Weaknesses

Advertising and promotion of their new product

This is a major set back for FSIBL Ltd. and one of its weakest areas. Banks advertising and promotional activities are satisfactory but it SME loan is not advertised well. It does not expose its SME product to general public and are not in lime light. FSIBL does not have any sign or any advertisement for SME loan in the city. As a result people are not aware of the existence of this bank.

 Low reward package

The reward package for the entry and the mid level management is considerably low. The compensation package for FSIBL. Entry level positions are even lower than the modern banks. Under the existing low payment structure, it will be very difficult to attract and retain higher educated employees in FSIBL.

 Time wastage                                    

More time taking for approving loan that discourage the customer for taking loan.

 Lack of On- line Service

All branches aren’t on-line Service. So This is a major set back for FSIBL Ltd. and one of its weakest areas.

Opportunities

Diversification

FSIBL can pursue a diversification strategy in expanding its current line of business. The management can consider options of starting merchant banking or diversify in to leasing and insurance. By expanding their business portfolio, FSIBL can reduce their business risk.

 Promotion of new Products

In this competitive environment FSIBL must expand its new product promotion to enhance its sustainable competitive advantage.

 Market share

It’s very important to FSIBL, to increase market share through growth of loan portfolio.

 Other Opportunities

• Enhanced business development in all product areas and promotion of those products.
• More experienced & managerial know-how.
• Countrywide network.
• Increased New sector loan facilities.
• Reduced overdue through strong recovery system.

Threats

• There are many competitors in the marker.
• The growth rate of competitors in the market.
• Many of the competitor banks are well equipped & also providing better online services.
• Regulatory requirements.
• Govt. pressures to reduce interest rate.
• Changing customers needs.

Finding

  All activities of FSIBL are conducted under a profit/loss based system according to Islamic Shariah to get the nation rid of Usury.

  They believe in providing dedicated services to the clients imbued with Islamic spiritof brotherhood, peace and fraternity.

  The Bank upholds the Islamic values of establishment of a justified economic systemthrough social emancipation and equitable distribution of wealth.

  The communication of Fast Security Islami Bank is open and free. Fast Security Islami Bank uses notice board, magazine, newsletters, the suggestion programs etc as a method of communication.

  Legal advisers take so much time before giving their legal opinion.

  There is positive relationship between performance appraisal and employee commitment to the organization.

  Managers do not provide any brief/ discussion or guide to communicate the performance appraisal system of the bank.

  Shortage of skilled man power in the branch.

Conclusion

First Security Islami bank Ltd. has established goodwill through innovative products and services. This report had shown that part of activities of FSIBL. For the future planning and the successful operation for achieving its prime goal in this current competitive environment this report can be a helpful guideline.So it is not an easy job to find out the drawbacks of this branch. I would rather feel like producing my personal opinion about the practices in Mohakhali Branch.

I have tried to present the strategy of First Security Islami Bank Limited and its products and services, and some suggestion for the improvement of First Security Bank Limited throughout the report. The required data about the interview procedure are collected from face to face conversation with the manager and employee of First Security Bank Limited.

Overall, the bank must make a positive attempt to be more outward looking in their goals and aware of what is happening. They must also emphasize on the domestic scenario more closely and analyze any certain trends and strategies of their competitors. The bank must accept any failures and think of them as an objective to pursue future goals instead of blaming such failures on other factors.
Recommendation

  Banking is a service-oriented marketing. Its business profit depends on its service quality.That’s why the authority always should be aware about their service quality.

  The management of FSIBL may invest more in interest sensitive asset by taking deposit of short term and lend for long to reduce gap between its interest rate sensitive assets and interest rate sensitive liabilities.

  Proper communication regarding the products and services of the bank should be enforced. As a result confusions will be minimized and customer satisfaction will enhance.

  Focus On Relationship Strategies: The bank should focus more on existing customers in order to build strong and loyal relationship with them as most satisfied customers recommends the bank to friends and relatives. Thus the power of relationship will foster positive Word of Mouth Communication and will attract new customers at a lower cost.

  More products of varied interests should be introduced for the diversified client group.

  The bank should take new marketing strategy which will    responds and take effective steps to increase faith on them.

  It should improve in file management system to faster the dealings with the client’s proposal.

   Interest rate should be made more moderate.

  The HRD should look into the matter that the branches are well staffed with the right people in the right position.

Complaint Management: FSIBL should actively manage the complaints of various customers and encourage customers to give feedback about the services. The management should collect, document complaints, use that information to identify dissatisfied customers, correct individual problems where possible and identify common service failure points. Research showed that this strategy will radically improve the overall customer satisfaction.

Bibliography

1. Company Act 1991
2. Anonymous (2011), First Security Islami Bank Limited Annual Report 2008, 2009
3. 2010 First Security Islami Bank Limited Bangladesh.

1. Circular of First Security Islami Bank Limited.
2. http://www.fsiblbd.com/ on July 25, 2011.
3. http://www.fsiblbd.com/deposit.php on July 25, 2011.

5. Marketing Research, 7^th Edition, Stanley F. Stasch, Ph. D
6. First Security Islami Bank Limited Website: Retrieved from

8. First Security Islami Bank Limited Website: Retrieved from