General Banking System of Social Islami Bank

Major purpose of this report is to analysis General Banking System of Social Islami Bank, Dhanmondi Branch. Other objectives are describe general banking and investment banking of Social Islami Bank. Here the loan section of Social Islami bank called investment section. Finally find out the problems regarding general banking and investment banking and make some recommendations to overcome the problems of general banking and investment banking.

Aim & Objective of the the study

• The study has been carried out with the following objectives.
• To describe and understand general banking of Social Islami Bank Ltd.
• To depict and understand investment banking of Social Islami Bank Ltd.
• To find out the problems regarding general banking and investment banking of Social Islami Bank Ltd.
• To make some recommendations to overcome the problems of general banking and investment banking.

Methodology of the Report

This report is prepared using both

• Primary
• Secondary Information.

Primary information was collected through-

• Informal interview with the organization officials of concerned department.
• Face to face conversation with the respective officers and staffs of the Branch regarding their duties.
• Informal conversation with the clients to have an understanding of their satisfaction regarding the bank.
• Practical work exposures from the different desk of the five department of the branch were covered.

Secondary information that was used for this report is collected mainly from –

• Statement of affairs & Income Expenditure report of the specific branch on yearly basis (this is published on daily affairs)
• Other sources are-Annual Report of SIBL.
• Various books articles compilations etc regarding general banking functions, foreign exchange operations.
• Bangladesh Banks circular
• Financial Highlights

OVERVIEW OF THE ORGANIZATION

Introduction

Social Islami Bank Bangladesh Limited is a Joint Venture Public Limited Company engaged in commercial banking business based on Islamic Shariah with 57.36% foreign shareholding having largest branch network (having 204 branches up to 05.10.2009 and 20 SME Service Centers) among the private sector bank in Bangladesh. It has established on the 13^th March 1983 as first Islamic Bank in South East Asia. It is listed with Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. The total Equity of the bank stood at Tk.20,431 million as on 30 June, 2009. At present Bank has 11 Zonal Offices.

Profit and Riba

Profit on loss comes from investment in business activities. Profit is the result of ownership transaction and risk following the fours stages:

• Transformation through Bai /Buying Selling of goods.
• Risk of Transformation and Ownership.
• Other Condition of Shariah.
• Result-Profit on loss

 Profit is the difference between the value of production and the cost of production which is Halal according to Islamic Shariah

Riba/Interest: Interest comes from loan, credit, advance of money. The word used by the Quran concerning “Interest” is Riba. The literal meanings of Riba are money increase, increase of anything or increment of anything from its original amount.

From the Islamic Shariah point of view, Riba is Haram.

Comparison between Riba and Profit

Conventional banking Vs. Islamic banking

Conventional banking is essentially based on the debtor creditor relationship between the depositors and the bank on the hand and between the borrowers and the bank on the other. Interest is considered to be the price of credit, reflecting the opportunity cost of money.

Islam on the other hand, considers a loan to be given or taken, free or charges, to meet any contingency. Thus in Islamic banking, the creditors should not take advantage of the borrower.

Nature of the organization

The bank is carrying out commercial, corporate, investment and retail banking related services to its customers through its 59 branches following the provisions of the bank company act 1991 as follows;

• Corporate finance
• Corresponding banking
• Documentary credits
• Foreign exchange
• Guarantees
• Syndicated finance
• Other related business

Business/ products of the organization

Deposits Products

Social Islami Bank Ltd gives special importance on savings. The bank mobilizes deposits through the operation of following account.

1. Al Wadiah Current Account (AWCA).
2. Mudaraba Hajj Savings Account (MHSA) (1year to 25 Year).
3. Mudaraba Waqf Cash Deposit (MWCD).
4. Mudaraba Special Savings (MSS) (Pension, 5 years to 10 years).
5. Mudaraba Muhor Savings Account (MMSA).
6. Mudaraba Savings Bond (MSB) (5years and 8 years)
7. Mudaraba Monthly Profit Deposits Scheme (MPDS) 3 years and 5 years.
8. Mudaraba Term Deposits (MTD) 3 months, 6 months, 12 months, 24 months and 36 months.
9. Mudaraba Savings Deposits (MSD).
10. Mudaraba Special Notice Deposits (MSND).
11. Mudaraba Foreign Currency Deposits (MFCD).

Current account is operated on Al-Wadiah principle and all other deposit accounts on mudaraba principle of Islamic Shariah. The bank distributes minimum 65% of its investment income earned through deployment of Mudaraba deposits among the Mudaraba depositors

Schemes

1. Neighborhood allowance scheme is implemented among the staff of the SIBL during the month of Ramadan 1416H under which each staff will get bonus equivalent to one month’s salary: 50 percent to Zakatable relatives and neighbors to internalize the Islamic Socio-Economic values.
2. Rotating Family Savings and Credit Net (RFSCN) and Group Installments Credit Scheme.
3. Group-Lending Scheme (already in operations through Tokai project).
4. Farmer’s Social Forum in rural areas.
5. Village exchange program.
6. Caring Village Account/Scheme.
7. Small Enterprise’ Social Forum and so on.

Loan and Advances

1. Secured Overdraft (SOD)
2. Loan (General)
3. House Building Loan (Staff)
4. Demand Loan
5. Transport Loan
6. Industrial Credit
7. House Building Loan (General)
8. Transport Loan (Staff)
9. Cash credit (Hypothecation)
10. Past Due Bills
11. Loan against Trust Receipt (LTR)

Services

• Online Banking
• ATM Banking
• Lockers
• Utility Bills

General Banking:

Financial institution /intermediary that mediates or stands between ultimate borrowers and ultimate lenders is knows as banking financial institution. Banks perform this function in two ways- taking deposits from various areas in different forms and lending that accumulated amount of money to the potential investors in other different forms.

General Banking is the starting point of all the banking operating. General Banking department aids in taking deposits and simultaneously provides some ancillaries services. It provides those customers who come frequently and those customers who come one time in banking for enjoying ancillary services. In some general banking activities, there is no relation between banker and customers who will take only one service form the bank. On the other hand, there are some customers with who bank are doing its business frequently. It is the department, which provides day-to-day services to the customers. Every day it receives deposits from the customers and meets their demand for cash by honoring cheques. It opens new accounts, demit funds, issue bank drafts and pay orders etc. since bank in confined to provide the service everyday general banking is also known as retail banking.

General Banking consists of the many sections in the branch. These are:

• Customer Service
• Account Opening/Closing
• Payment Order Issue
• D Issue/Collection
• T. Issue/Collection
• Account Transfer
• IBC/OBC Collection
• Deposit Department
• Clearing Department
• Cash Department etc.

General Features of General Banking:

• Issuance of token, Maintenance of subsidiary day Book, writing of day Book, balancing of Ledger.
• Opening of A/C like – Savings A/C, Current A/C, Short Term Deposit A/C, writing of A/C opening registers and issuance of pass book and cheque Book etc.
• Maintenance of current A/C ledgers, deposit ledger and FDR ledger and operation.
• Writing of transfer scroll, statement of current A/C and deposit A/C.
• Bills: Outward & inward Bills (OBC & IBC) and clearing.
• Remittance: Issuance and payment of DD, TT, PO etc.
• Writing of clean cash Book and posting of General Ledger.
• Maintenance of charges, suspense and sundry deposit A/C, maintenance of dead stock and stationery articles registers.
• Schedule Telegram and preparation of General ledger A/C statement.

Customer Service:

Customer service includes provide information to all type of customer queries. Each day many people come to the branch with various types of problems. Some of information is like Account opening requirements, DPS related information, FDR information, Give instruction for address change, signature change, nominee change, and account closing information, DPS closing information, FDR closing formalities, pay order, document issue and all type of queries.

Account Opening

It is said that there is no banker customer relationship, if there is no account of a person in that bank. By opening an account banker and customer create a contractual relationship. However, selection of customer for opening an account is very crucial for a bank.

Before opening of a current or savings account, the following formalities must be completed:

• Application on the prescribed form.
• The customer information must be filled up with the form.
• Introduction: The following persons can introduce an account opener;
  • An existing current/savings account holder of that branch.
  • An offer of that branch (not below of the rank of an Assistant officer).
  • A responsible person of the society or locality who is well known to the Manager/2^nd man of the branch concerned.
• Furnishing photographs.
• Banker will supply a set of printed forms required for opening the account which will normally include:
  • Specimen Signature cards (SSC).
  • Deposit Slip Book.
  • Check Book Requisition Slips.
• Customer should carefully read and fulfill the application form.
• Putting specimen signatures in the specimen card.
• Any special instructions with regards to operation of the account should be noted.
• On the relevant signature card boldly duly authorized buy the account holder should be obtained.
• The required Account Number of the new account should be obtained from the Account Opening Register.
• Obtain the signature and account number of the Introducer on the advice and getting the signature properly verify by an Authorized official of the bank
• The deposit slip properly filled in and signed by the customer.
• Then the new account number should be written at the appropriate place of the deposit slip and mark new Account on both the copies of the Deposit slip and request the customer to deposit the money at the cash counter.

• Place the signature cards, Advice of new account, a copy of Deposit slip, photographs and other necessary papers/documents etc. in a file.
• Obtain approval of the authorized officer for opening the new account on all relevant papers while giving approval for opening an account the authorized official should be satisfied about the introducer.
• The authorized officer on the advice of new account and on the specimen signature cards should also attest the signature of the new account holder.
• After approval of the opening of the account, get the Cherub book requisition slip signed be the customer.
• Deliver the cheque book to the customer after properly marking the account number, name and place of the branch on each leaf of the cheque.

On completion of account opening, open a file for the new account holder and file relevant papers forms etc. Signature cards, copies of Advice, Deposit slip etc. is distributed to concerned departments.

Papers and Documents Required for Account Opening

Savings Bank Account (SB)

• Passport size photograph – two copies.
• Introducer’s signature in the account opening card and photograph.
• National ID Card/Passport’s photography (duly attested)
• Nominee’s photograph.
• Mother’s name.
• Father’s/ husband’s Name
• Present Address
• Permanent Address
• Date of Birth and Age.

Current Deposit (CD)

Individual Account

• Passport size photograph – two copies.
• Introducer’s signature in the account opening card and photograph.
• Nationality Certificate/Passport’s photography (duly attested)
• Nominee’s photograph.
• Mother’s name.
• Father’s/ husband’s Name
• Present Address
• Permanent Address
• Date of Birth and Age.
• TIN papers.

Proprietorship Account

• Passport size photograph – two copies.
• Introducer’s signature in the account opening card and photograph.
• Nationality Certificate/Passport’s photography (duly attested)
• Nominee’s photograph.
• Mother’s name.
• Father’s/ husband’s Name
• Present Address
• Permanent Address
• Date of Birth and Age.
• TIN papers –
  • Trade License (valid)
  • Seal/Rubber Stamp.

Partnership account

• Passport size photograph of account operator (Authorize by parents) – two copies (each).
• Introducer’s signature in the account opening card and photograph.
• Nationality Certificate/Passport’s photography (duly attested)
• Parent’s name.
• Present Address
• Permanent Address
• Business Address
• Date of Birth and Age.
• TIN papers
• Partnership Letter.
• Trade License (valid).
• Partnership deed (from Notary Public).
• Seal/Rubber Stamp.

Account for Limited Company

• Passport size photograph of account operator (Authorize by parents) – two copies (each).
• Introducer’s signature in the account opening card and photograph.
• Company resolution.
• Common seal of the company.
• Memorandum & Articles of association (certified by Joint Stock Company).
• List of Directors with sign.
• Certificate of incorporation.
• Trade License (valid).
• TIN papers.

Account for Societies, Clubs, etc.

• Passport size photograph of account operator (Authorize by parents) – two copies (each).
• Introducer’s signature in the account opening card and photograph.
• Nationality certificate of the operators.
• Bye-laws & Regulations/constitution.
• Board Resolution.
• Up-to- date list of office Bearers/Governing Body/Managing Committee.
• Memorandum & Articles of association (certified by Joint Stock Company).
• Seal/Rubber Stamp.

Deposit Schemes (Local Currency)

• Savings Account
• FDR Account
• STD Account

Savings Account

Any Bangladeshi National residing home or abroad may open savings account with SIBL. This account may be opened in single/joint name. The account holder may nominate his nominee in this account. The nominee can get the balance amount without submitting succession certificate after the death of account holder. This account bears usual rate of interest. SIBL offers 1% above the normal rate of interest on credit balance of TK.2.00 lac and above kept in the savings account for more than 6 month.

Requirement for opening of the A/C

• Account opening form as per format below. The Account opening form and signature card to be filled in and duly signed.
• Two copies passport size photographs of the account holder.
• Photograph of nominee (if any) duly attested by the account holder.
• Photocopy of the 1^st 7 pages of the passport for non-resident Bangladeshi national.
• Signature in the account opening form/card must be same with the signature of the passport.

FDR Account

Any Bangladeshi national residing home or abroad may open FDR with SIBL. FDR may be opened single/joint name for a period of 3, 6, 12, 24 and 36 months. SIBL offers attractive/competitive rate of interest in FDR.

PROFIT RATE (Approximate)

Renewal of FDR

The FDR becomes automatically renewed for like periods and amounts, unless this are withdrawn by the depositor or the bank notifies the depositor in writhing at least 15 days in advance of the original or any renewed maturity date of its desire to terminate the account or cheque any term and condition of the account.

Short-Term Deposit (STD) Account

In SIBL, limited companies, corporate groups, various other big companies, organizations, Govt. Departments keep money in STD accounts. Frequent withdrawal is discouraged and requires 7 (Seven) days prior notice. STD account opening procedure is similar to that of the saving account. Initial account opening minimum amount requirement TK. 1000/-

In Short Term Deposit Account, the deposit should be kept for at least 7 (seven) days to get interest. The interest offer for STD is less then that of savings deposit. 6% interest is paid on their deposit. The bank is benefited because they have to pay less interest and the customers are also benefited because they any time can divert money.

In SIBL, usually customers give an instruction to the bank that their current account will be debited whenever its deposited amount crosses a certain limit and this amount will be transferred to the STD account.

Procedure of issuance of a fresh cheque book

• A customer who opened a new account initially deposits minimum required money in the account.
• The account opening form is sent for issuance of a cheque book.
• Respected officer first draws a cheque book.
• Officer then sealed it with branch name.
• In-charge officer enters the number of the cheque book in Cherub Book Register.
• Officer also entry the customer’s name and the account number in the same Register.
• Account number is then writing down on the face of the cheque book and on every page of the cheque book including Requisition slip.
• The officer who has the signing authority signs on every page of the cheque book and the next requisition slip exists in the chequebook.
• The name of the customer is also written down on the face of the cheque book and Requisition Slip.
• The word ‘issued on’ along with the date of issuance is written down on the requisition slip.
• Number of cheque book and date of issuance is also written on the application form.
• Next the customer is asked to sign in the cheque book issue register.
• Then the respected officer signs on the face of the requisition slip put his initial in the register and handover the cheque to the customer.

Issue of new Cheque book (For old Account)

All the procedure for issuing a new cheque book for old account is same as the procedure of new account. Only difference is those accounts have to submit the requisition slip of the old cheque book with date, signature and his/her address. Computer posting is then given to the requisition slip to know the position of account and to know how may leaves still not used. The number of new cheque book is entered on the back of the old requisition slip and is signed by officer.

Transfer of an Account

• The customer submits an application mentioning the name of branch to which he wants the account to be transferred.
• His signature card, advice of new account and all relevant documents are sent to that branch through registered post.
• The balance standing at credit in customer’s account is sent to the other branch through Inter Branch Credit Advice (IBAC).
• Not exchange should be charged on such transfer.
• Attention is also given in this connection.

Closing of an Account

Upon the request of a customer, an account can be closed. After receiving an application from the customer to close an account, some procedures are followed by a banker. The customer should be asked to draw the final cheque for the amount standing to the credit of his account less the amount of closing and other incidental chargers and surrender the unused cheque leaves. The account should be debited for the account closing charges etc. and an authorized officer of the bank should destroy unused cheque leaves. In case of joint account the application for closing the account should be signed by all joint holders.

A banker can also close the account of his customer or stop the account under following considerable circumstances:

• Death of the customer.
• Customer’s insanity and insolvency.
• Order of the court.

Cash Section

The cash section with all types of negotiable instruments, cash and other instruments and treated as a sensitive section of the bank. It includes the vault, which is used as the store of case instruments. If the cash stock goes beyond this limit the excess cash is then transferred to Bangladesh Bank. Keys to the room are kept under control of cash officer and branch in charge. The amount of opening cash balance is entered into a register. After whole days transaction the surplus money remains in the cash counter is put back in the vault and known as the closing balance. Money is received and paid in this section.

Cash Receipt

• At first the depositor fills up the deposit in slip. There are two types of deposits in slip in this branch. One for savings account and another for current account.
• After filling the required deposit in slip depositor deposits the money.
• Officers at the cash counter receives the money, count it enter the amount of money in the scroll register kept at the counter, seal the deposit in slip and sign on it with date.
• Then this slip is passed to another officer who enters the scroll number given by the cash counter in his register along with the amount of the money, sign the slip and keep the bank’s part of the slip. Other part is given to the depositor.
• All deposits of saving account are maintained be one officer and other accounts by another officer.
• At the end of the day entries of both of these registers are cross checked with the register kept at the counter to tee whether the transaction are correct or not.

Cash Payment

• First the client comes to the counter with the cheque and gives it to the officer in charge there. The officer checks whether there are two signatures on the back of the cheque and checks his balances in the computer. After that the officer will give it to the cash in charge.
• Then the cash in charge verifies the signature from the signature card and permits the officer in computer to debit the client’s account by giving posting. A posted seal with teller number is given.
• Then the cheque is given to the teller person and he after checking everything asks the drawer to give another signature on the back of the cheque.
• If the instrument is free of all kind of error the respected officer will ask the bearer to sign on the back of it.
• He will then put his initial beside the bearer’s signature. She/He will also signs it on its face, will write down the amount by red pen and will put on a scroll number from his scroll register.
• Then the cheque will be sent to the cash counter. At the cash counter bearer will be asked again to sign on the back of the instrument.
• The cash officer will then enter the scroll number in his register and will pay the money to the bearer.
• At the end of the day these scroll number of the register will be compared to ensure the correctness of the entries.

Sorting & Stitching:

Sorting:

At the end of the day, the amount of cash has to be sorted out in order to identify the different type notes like – 1000, 500, 100, 50, 20, 10, 5, 2, 1 and so on. Hundred pieces of any type of note create a bundle and ten bundles make a ring. In this way cash is actually sorted out.

Stitching:

After sorting out the cash, bundles are stitched along with a slip bearing the name of the bank, total number of notes and the signature of the Cash-In-Charge. Two round seals are given at the both sides of the bundles.

Remittance (Local)

Bank is a service oriented industry and deals with public money. They provide services to their clients through different ways. “Transfer of money/fund of one person/customer to another person/firm/organization through the bank is called remittance”. Any person can remit funds to any one within the country through any of the branches of some bank by the following means with nominal charges:

• Pay Order
• Demand Draft
• Telegraphic Transfer
• Mail Transfer

Remittance is Taka currency and in foreign currency from abroad.

Any Bangladesh national residing, working and earning abroad can remit their earnings in Bangladeshi Taka as well as in foreign currency through the banks/Exchange companies having drawing arrangement with Social Islami Bank Limited. Such remittances are delivered to the beneficiaries expeditiously through its close/wide network of 207 branches all over the country. It also ensures delivery of remittance to the beneficiary within 24 hours. Any person can take the service of the 600 correspondents of SIBL world wide for remitting any foreign currency to his beneficiary in the country.

Payment Order (P.O)

This is an instrument issued by the branch of a bank for enabling the customer/purchaser to pay certain amount of money to the order of a certain person/firm/organization/office within the same clearing house area of the pay order issuing branch.

Demand Draft (D.D)

The Demand Draft is a written order by one branch of a bank upon another branch of the same bank to pay a certain sum of money to or to the order of a specified person. This is an order instrument in which the issuing branch gives instruction to the payee branch to pay certain amount of money to the order of certain person/firm/organization.

Telegraphic Transfer (T.T)

It is an instruction duly tested sent by telex/telegram/telephone/express mail etc. to the drawer branch for paying a certain sum of money to a specific person. This mode of transfer of fund may be affected at the written request an account holder of the branch and against value received from him. It is preferable to obtain a confirmatory cheque from the customer.

Mail Transfer (M.T)

In the prescribed format the purchaser/drawer branch instruct the drawer branch to pay a specified sum of money to the payee named in the IBCA preferable by crediting his account.

Clearing

Where inter-banks receivables and obligations are settled. A particular house/place under the control and supervision the central bank of the country. Where representatives of the member bank/schedule banks/assembles/meets together for settlement of their respective banks receivables and payables. It sits on all working days. In our country clearing house are organized by the Bangladesh Bank at the different big cities. There are two types of clearing:

Inward Clearing

When a particular branch receives instrument which drawn on themselves and sent by other member bank for collection are treated as inward clearing.

Outward Clearing

When a particular branch receives instrument drawn on the other bank with in clearing zone and those instruments for collection through the clearing arrangement is consider as outward clearing for that particular branch.

Outward Bills for Collection (OBC)

Customers deposit cheque, draft etc for collection attaching with their deposit receipt. Instrument within the range of clearing are collected through local clearing house but the other which are outside the clearing range are collected through OBC mechanism. A customer of SIBL principal branch local office Dhaka is depositing a check of Sonali Bank Cox’s‑Bazar. New as a collecting bank SIBL principal branch will perform the following tasks.

• Received seal on deposit slip.
• SIBL local office principal branch crossing indicating them as collecting bank.
• Endorsement give payees A/C will be credited on realization.
• Entry on register from where a controlling number is given.

Collecting bank can collect it either by its branches of by the drawer’s bank they will forward the bill then to that articulate branch. OBC number will be given on the forwarding letter.

Inward Bills for Collection (IBC)

In this case bank will work as an agent of the collection bank branch receives a forwarding letter and the bill. Next steps are:

• Entry in the IBC register, IBC number given.
• Endorsement given‑ “our branch endorsement confirmed”.
• The instrument is sent to clearing for collection.
• Miscellaneous creditor A/C.

DUTIES & RESPONSIBILITIES

Duties and responsibilities as an intern

I was joined in Social Islami Bank Bangladesh Limited, Dhanmondi Branch as an intern on 25^th August and it was finished at 25^th November. I was assigned to do my internship at Social Islami Bank Bangladesh Limited (Dhanmondi Branch) for the period of three months. In SIBL the working day in a week is 5 days. Practically 90 days I worked in the Dhanmondi Branch. But I had no specific work position in the branch. Most of a day, I stay in General Banking section. Few days I was in the clearing and account opening section, the main responsibilities of clearing section were to receive several cheques from clients. I also attached seal in the front and the back side of the cheque for clearing. I provided information about the account opening requirement to their clients. For account opening, customer need two copies passport size photo, commissioner certificate, introducer sign and nominee photo for their account opening.

Accomplishments

Social Islami Bank Bangladesh Limited is a Shariah base bank. In my internship period I have got practical knowledge from Dhanmondi Branch. I have learnt so many things about the banking sector especially Islamic banking system.

• How to open their several account in their bank.
• What are the requirements for opening their account?
• What are the procedures to close an account?
• How clearing house operates their operation.
• How to provide information to their client.
• How to verify signature in different issue.
• How to renew FDR account.
• How to issue a Pay Order.
• How to issue Demand Draft.
• Finally, I learned how to prepare an internship report.

Problems encountered

When I was assigned to do my internship at Social Islami Bank Bangladesh Limited (Dhanmondi Branch) for the period of three months. This time I’m creating some problem. Now below to describe this problem:

Investment section: In the SIBL the investment section is more confidential than other section. My duties were adjust the investment file and paper. But I had no deals with the client because I’m fresher student. When I’m deals with the client this time facing some problem. Then I took some information about investment sector from the senior officer in the investment division.

Foreign Exchange department has three departments. This are import Export and Remittance I also work in import division to adjust L/C information in client file for 2 days. This time I’m also facing some problem but in this time passing it because senior officer help me.

SWOT ANALYSIS

The SWOT analysis of SIBL, Dhanmondi Branch is given bellow:

“SWOT” reveals full meaning of the word as “Strength, Weakness, Opportunities and Threats”.

Strengths

SIBL, Dhanmondi Branch has a number of strengths include:

• Well decorated and air conditioned facilities.
• Money counting machine for making cash transaction easy and prompt.
• In SIBL Bank SWIFT is being used for foreign trade related operations like letter of credit, fund transfer, guarantee, etc with optimum security.
• SIBL has a well-diversified pool of human resources, which is composed of people with high academic background. They are always devoted themselves to works for better customer service.
• SIBL provide ATM debit card and nonstop banking facilities.

Weaknesses

SIBL, Dhanmondi Branch has some weaknesses which include:

• Absence of an upgraded website.
• Limited number of employees.
• SIBL has no ATM booth in Dhanmondi branch.
• SIBL has no SME Center in Dhanmondi branch.
• Sometimes it seemed to me that charges and other fees are very high compared to other private banks. It frequently creates customer dissatisfaction.

Opportunities

Opportunities of the SIBL, Dhanmondi branch which include:

• Regulatory environment favoring private sector development.
• SME business for that particular area.
• Credit card business.
• SIBL, Dhanmondi Branch can introduce more innovative and modern customer service.

Threats

Threats of the SIBL, Dhanmondi branch which include:

• Common attitude of Bangladeshi clients to default.
• Number of potential competitors in those areas increasing day by day.
• Competitors in those areas can capture market by offering similar products.
• Market pressure for lowering the interest rate.
• Bangladesh bank sometimes forced some rules and regulation which is not sustainable for SIBL, Dhanmondi Branch.

CONCLUSION

Through Social Islami Bank ltd. is a new stated Bank but this bank running successfully and for its good deposit performance the bank occupies 2^nd position in the Islamic Banking Sector.

Taken all in all, it can be safely said that SIBL’s action program is directed towards development of an authentic participatory Economy beyond Market Economy. The family empowerment credit program of Social Investment Bank is gaining ground at the grass root field level in Bangladesh. Family Empowerment micro credit and micro enterprises program must be designed in a manner so as to make a) finance, b) production, c) marketing, d) trading, e) local specific survey and research as well as moral suasion in one package. In SIBL approach, credit conveys the totality in life and clearly linked to social context and cultural setting in conformity with Shariah. There is a built in provision for social subsidy. De-secularizing credit may lead to re-writing new economics. It is thus felt that the linking credit to social goals and assignments will have far-reaching theoretical implications for development of an alternative concept of new theories of income, output and employment.

This bank expresses its sincere thanks to the government of the people’s republic of Bangladesh and Bangladesh bank for their co-operation and valuable guidance to the bank. SIBL also takes this opportunity to their valued clients, patrons well wishers, correspondents and the shareholders for their support and patronization extended during the year under review. SIBL also record its appreciation for the services rendered by the executives and the members of the staff for the stability and growth of the bank.

SIBL needs further active support and continued cooperation of Bangladesh Bank, ministry of finance and other government agencies, executives and employees of the bank, valued partners, clients and the community at large in accomplishing difficult tasks ahead of it.

Let us pray, may almighty Allah, allow the bank to work together for turning Bangladesh into a model caring society.

RECOMMENDATIONS

Based on my three months observation in the bank, I achieved lot of practical knowledge. During the internship period I faced some problems and based on that I state the following recommendations to the bank:

• They should update their banking software and system that ultimately result in fully automated banking activities to attain customer satisfaction.
• SIBL, Dhanmondi Branch should have an ATM booth.
• SIBL, Dhanmondi Branch should have a SME center.
• Number of employees of SIBL, Dhanmondi Branch should be increased.
• Charges and fees may be reduced for more customer satisfaction.
• Officials whom are involved in Customer Services should be trained properly. Because some time they cannot give proper suggestions to the customer queries. Though they try to give their best.
• SIBL should train its new employees from professional institution like Bangladesh Bank, Bangladesh Institution of Bank Management (BIBM) etc.
• Cash department of Dhanmondi branch should be more secure.
• There should be a code of conduct for the SIBL officials, which should followed.