Report on Facilities and Problems in services of Shahjalal Islami Bank

The main purpose of this report is to present an overview of Shahjalal Islami Bank Limited, here focus on facilities and problems in services of Shahjalal Islami Bank. Here describe the general description of the banking services and submit a brief description of the problems of these services. The overall explanation is to get an overview of the private Banking in our country. Finally, explain SWOT analysis and find out some problem and recommend some solution.

Introduction 

Shahjalal Islami Bank commenced its operation as a commercial bank on 10 May 2001 under the Bank Companies Act, 1991. This bank follows Islamic Shariah strictly. SJIBL started functioning with a vision to develop itself as a unique Islami bank of the country with all modern services and products available for the clients. And at the same time, it would contribute to the sustainable growth of the national economy.

All the activities of the bank are continuously monitored by the Shariah Council of the bank for implementation and compliance of Islamic Shariah principles. The council is constituted of prominent ulemas, experienced bankers, reputed lawyers and eminent economists of the country.

The objective of the Study :

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

The objective of the study may be viewed as:

• Broad objective
• Specific objective

Broad Objective:

The general objective of this report is to complete the internship program and submit a report. As per requirement of BBA program of Northern College Bangladesh, one student needs to work in a business organization for three months to acquire practical knowledge about actual Business operation.

Specific Objective:

• To present an overview of Shahjalal Islami Bank Limited.
• A general description of the banking services of Shahjalal Islami Bank Limited.
• To submit a brief description of the problems of these services.

Other Objectives:    

This report on SJIBL is prepared for some distinguished objective, which is as follows:

• To fulfill the academic requirement;
• To gather knowledge about banking companies operations in the practical field.
• To gather practical knowledge and real-life experience in the official environment.
• To apply theoretical knowledge in the practical field.
• To observe the working environment in commercial banks.
• To study existing banker-customer relationship.
• To identify a link between practical operational aspects of the Bank to complimentary the theoretical lessons
• To get an overview of the private Banking in our country.

A quick view of Shahjalal Islami Bank Limited :

Shahjalal Islami Bank Limited (SJIBL) commenced its commercial operation in accordance with the principle of Islamic Shariah on the 10th May 2001 under the Bank Companies Act, 1991. During the last ten years, SJIBL has diversified its service coverage by opening new branches at different strategically important locations across the country offering various service products both investment & deposit. Islamic Banking, in essence, is not only INTEREST-FREE banking business, but it also carries deal wise business product thereby generating real income and thus boosting GDP of the economy. Board of Directors enjoys high credential in the business arena of the country, Management Team is strong and supportive equipped with excellent professional knowledge under the leadership of a veteran Banker Mr. Muhammad Ali. And the College Gate Branch of SJIBL was established in mid of 2009. Now, SJIBL has 63 branches, 1 offshore banking unit, 6 SME centers, 16 ATM booths, and more than 1600 employees.

Vision and Mission of SJIBL:

Vision:

To be the unique modern Islami Bank in Bangladesh and to make a significant contribution to the national economy and enhance customers’ trust & wealth, quality investment, employees’ value and rapid growth in shareholders’ equity.

Mission:

• To provide quality services to customers.
• To set high standards of integrity.
• To make a quality investment.
• To ensure sustainable growth in business.
• To ensure the maximization of Shareholders’ wealth.
• To extend our customers innovative services acquiring state-of-the-art technology blended with Islamic principles.
• To ensure human resource development to meet the challenges of the time.

Shahjalal Islami Bank Limited at a Glance:

With a view to materialize the dream of the people of Bangladesh for doing their banking transactions in line with what is prescribed by Islam, a group of highly successful entrepreneurs conceived an idea of floating a commercial bank styled as “Shahjalal Islami Bank Limited” which is named after the name of the renowned saint Hazrat Shahjalal (R) who dedicated his life for the cause of peace in this world and hereafter and for the service of humanity. The sponsors have reputed personalities in the field of trade & commerce, industry, and finance.

“Shahjalal Islami Bank Limited” offers the full range of banking services for personal and corporate customers, covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by our central bank. The Bank is being managed by a group of highly experienced professionals with diversified experience in finance and banking.  The Management of the bank constantly looks after customers’ satisfaction and believes that a satisfied customer is a great Ambassador. The Bank has already achieved tremendous progress within ten years. The bank has already ranked as one of the quality service providers & is known for its reputation. By now, the Bank established correspondent Banking relationship with 18 Banks covering their global network of 385 branches/units of International repute at different important locations. It also established an accounting relationship with 10 Banks and maintaining 22 NOSTRO Accounts in 8 (eight) major Currencies at different convenient locations.

The Board of Directors of this Bank consists of reputed Industrialists and Businessmen who are successful in their respective fields headed by Mr. Sajjatuz Jumma, the Chairman of the Board who is an eminent Industrialist & reputed businessman in Bangladesh and current Chairman of Islamic Banks Consultative Forum (IBCF).  The Bank is managed by a Team of professional Executives and Officials having profound banking knowledge & expertise in different areas of management and operation of Banks.

General Banking Department:

General banking department is one of the most important departments of Shahjalal Islami Bank Limited. Basically, the bank provides the main services to the customer through this department. In general, this section of the Shahjalal Islami Bank Limited is divided into five sections.

• Accounts opening section
• Cash section
• Remittance section
• Bills and clearing section
• Accounts section

Foreign Exchange Department:      

Banks play a very important role in affecting the foreign exchange transaction of a country. Mainly transactions with overseas countries are in respect of imports; exports and foreign remittance come under the purview of the foreign exchange department. Banks are the vital sectors by which such transactions are effected /settled. Central Bank records all sorts of foreign exchange transactions.

The other banks dealing with the foreign exchange are to report to Bangladesh Bank regularly (viz. daily, monthly, quarterly, yearly, etc.). The foreign exchange department consists of three sections. They are:

• Import section
• Export section
• Foreign remittance section

Investment Department:

Banking business consists of borrowing and lending, Bank act as an intermediary between surplus and deficit economic units. Thus a banker is a dealer in money and credit. Banks accept deposit from a large number of customers and then lend a major portion of the accumulated money to those who wish to borrow. In this process, banks secure a reasonable return to the savers, make funds available to the borrowers at a cost and earn a profit after covering the cost of funds. Banks, besides their role of inter-mediation between savers and borrowers and providing an effective payment mechanism, have been allowed to diversify into many new areas of better-paying business activities.

• The operational area or principal activities of the Bank are to provide all kinds of commercial banking products and services to the customers including:
• Deposits taking,
• Cash withdrawal,
• Extending investments to corporate organization,
• Retail and small & medium enterprises,
• Trade financing,
• Project finance,
• Working capital finance,
• Lease and hire purchase financing,
• Issuance of Debit Card.

Its vision is to be the best private commercial bank in Bangladesh in terms of efficiency, capital adequacy, assets quality, sound management, and profitability.

With a view to skill the manpower, Shahjalal Islami Bank Limited established Training Center at Uday Sanz, Plot no, Se(A)2/B Gulshan South Avenue Gulshan-1, Dhaka-1212. Form the inception of training center various subject are taught like:

• Islamic Banking,
• General Banking,
• Investment Mechanism,
• Foreign Exchange,
• Modern Technology of IT,
• Asset Management,
• Customer Service etc.

Besides this, newly recruited employees are trained through the Foundation Course which is arranged by the training center.

The bank always laid emphasis on human resource development. To attract and retain qualified and efficient staff, the Bank has formulated a number of well-thought policies for the welfare of its employees, in the form of Gratuity fund, Social Security Fund, Employees House Building Investment Scheme, Employees Car Financing Scheme, Benevolent Fund & Employees House Furniture Allowance, etc.

Achievement:

Despite changing macro-economic condition and volatile money market & foreign exchange market, Shahjalal Islami Bank Limited was successful in achieving much higher than national growth in deposit, Investment (Loan), export, and import & remittance business.

The ratio of non-performing investment is within the acceptable range of 0.44%. the fact that non-performing investment ratio remained below 1% indicated that the strategy of quality growth by adhering to compliance in all spheres of operations is working well.

During the year under review, the bank maintained the progress in all areas of business through its thirty-three branches. The operating profit before provision & tax registered an impressive growth of 37.64 percent during the year. The operating profit before tax stood at Taka 2,960 million.

Strong profit performance was attributable to its sustained deposit and investments growth, maintaining good asset quality, enhancing productivity and investment in shares through a brokerage house.

At the very inception, Bank started with an authorized capital of Tk.800 million. While its initial Paid-up Capital was Tk.205 million subscribed by the sponsors in the year 2001.

Divisions and Activities:

Finance Administration Division (FAD)

This division is working to take day to day financial information about the organization. Reconcile all the head of accounts it will provide Financial Statement information to the Board of Directors and shareholders annually and semi-annually.

MD Secretariat Division

This division is specially working to keep the communication between the Managing Director of Shahjalal Islami Bank Limited and its Board of Directors.

Human Resource Division (HRD)

This division is working to satisfy the organization’s manpower needs. This division is responsible for the recruitment of employees, give training to them to adjust with works of the bank and placement of them.

International Division (ID)

This division is responsible for international transactions, competitive currency exchange rate, and many other foreign exchange related activities.

General Banking Division

This division is responsible for keeping different accounts, clearinghouse activities, inter-branch transactions, cash related activities, and so many other activities.

Marketing Division

This division is responsible for all types of promotional activities of products or services of the bank.

Foreign Trade Division

This division is a special type of divisions which is working for finance the export and import trade of Bangladesh.

Credit Division

This division is responsible for the activities regarding different types of loan products. This division is one of the traditional divisions of the banking sector.

System and Operation Division

This division is responsible for the printing of different types of negotiable instrument books, form, and buying other technical instruments and their repair for official uses.

Share Division

This division is especially responsible for share related activities, such as activities for own bank shareholders, work as an underwriter for other organization’s share and so on.

Credit Administration Division

This division is responsible for credit-related rules and regulations of the bank and formulation of new policy and strategy regarding credit.

Internal Control and Compliance

This division is responsible for the auditing of all activities of the bank to see whether any fraud or misappropriation has done by anyone or group of people.

Trade Finance Division

This division is responsible for financing different kind of business industries and sectors for the prospect of the economy of Bangladesh.

At a glance Profitability of position of the bank for Last 5 years

Table-: Profitability of position of the bank for Last 5 years

During the year 2010, the Bank earned an amount of Tk.9,509 million and spent an increased by the amount of Tk.5,980 million, resulting in a total Operating Profit of Tk.3,529 million which 494.79 million over last year i.e. 31.12.2009. Form the operating profit of Tk.145.00 million kept provision for investment, Tk.70.50 million provisions kept for Off-Balance Sheets, Tk.27.50 million provisions kept for Investment in Securities, Tk.1.00 Million provision kept for other assets and then profit before tax stood total 1,565.80 million and deducting income taxes of Tk.748.09 million, Net Profit after taxation stood at Tk.817.71 million. As appropriate action of net profit Tk.313.16 million was transferred to statutory reserve as per Bank Company Act. 1991 and Remaining Tk.504.55 million was transferred to retained earnings.

The Services of Shahjalal Islami Bank Limited:

• Account Services
• Deposit Schemes
• Loan Services
• ATM Card Services
• SMS Service
• Internet Services

Account Services

SJIBL provides Savings account and Current account as a commercial bank. In addition, it provides Term deposit and Short notice deposit accounts for its clients. Mudaraba Term deposit account is for a duration of 3 months and its multiple periods. Mudaraba short notice deposit account requires a notice of a minimum of 7 days for withdrawal of money. The profit for these accounts is decided in compliance with Shariah.

Deposit Schemes

Shahjalal Islami Bank Limited provides a good number of attractive deposit schemes for limited income people. These are:

• Mudaraba Monthly Income
• Double money
• Monthly Deposit
• Millionaire
• Hajj Deposit
• Housing Deposit
• Small Business
• Lakhopoti Deposit
• Bibaho Deposit
• Mohor Deposit
• Shikhkha Deposit

Monthly Income Scheme is a fixed deposit for 3 years term. Profit is distributed every month at an estimated rate which would be finalized after the year-end and adjusted accordingly. At the end of the term, you would get the principal.

Double Money Scheme of SJIBL not only doubles the money, but it also triples your money in nine and a half years. If you encash after six years you’ll get it doubled.

Monthly Deposit Scheme of SJIBL is a privilege to limited income people to save some money from their income. To some extent, it’s a forced saving. You have to deposit the installment every month. After maturity, you’ll get the principal plus the profit accrued.

The term for Millionaire scheme of SJIBL is 12, 15, 20 and 25 years. Depending on term length the installment is decided. You have to deposit the installment every month. After completing the term you would get about a million Taka.

Those who are financially weak to perform Hajj are offered with the Hajj scheme to save money gradually and build up a fund sufficient to perform the farj. You may choose the term from 1 year to 25 years.

Mudaraba Housing Scheme of SJIBL is designed for a term of one year through 25 years. After the term, you’ll get the principal and profit as per shariah.

Mudaraba Lakhopoti deposit of SJIBL is to encourage the low-income group of people to develop a fund of Tk. 100,000 from very small savings. You would deposit an amount as low as Tk.450 per month and after 10 years you would get a substantial amount. The terms are 3, 5, 8 and 10 years.

The monthly installment for Bibaho Deposit ranges from Tk.250 to 2000 and term is selectable from 10, 12, 15 and 20 years. This helps to meet the wedding expenses of your children.

Mohor Deposit scheme of SJIBL is prepared for people who desire to pay wife’s Mohor but has no capability to do. He can step by step to develop the fund to pay the same.

When you become a parent you have to think about the future of the child. The most important point about the child is his future education. Quality education is quite expensive today. So you have to start saving as early as possible. Mudaraba Shikhkha Deposit is for the purpose.

Loan Services

• Small and Medium Enterprise (SME) Investment
• Small Business Investment Scheme
• Housing Investment
• Household Durables Investment Scheme
• Car Purchase Investment Scheme
• Overseas Employment Investment Scheme
• Investment Scheme for Executives

Small and Medium Enterprise (SME) Investment

The SME Sector has been declared by the Government as a priority sector. In our country, Small and Medium Enterprises (SMEs) play the pivotal role for employment generation, poverty alleviation and overall economic growth of the country. It has been observed that fund is the major constraint of this sector. Therefore, we need to inject more funds into this sector in a very planned manner to boost-up this sector for the sake of the overall economic development of the country. Our country is labor abundant and SMEs are typically labor intensive. So, the sector deserves more investment facility for the smooth functioning of the existing enterprises and expansion of the same with a view to retaining the workforce active as well as creating more employment opportunities. Further, investment in SMEs can be very effective in reducing poverty as well as ensuring long term economic growth.

Shahjalal Islami Bank Limited (SJIBL) is a modern commercial bank governed by the principles of Islamic Shariah, which is committed to implement and materialize the economic and financial principles of Islam in the banking sector. It has undertaken initiatives for investment in SME sector by introducing a number of SME products in the market gradually with a view to patronizing the trade, commerce and industrial entities with equity & justice and to make an effective contribution for creating employment opportunities, which will ultimately help the nation for poverty alleviation from the society.

Investment Scheme for Executives

Do you want funds readily available to be granted for your any unforeseen expenditures whenever you desire or need; be it a sudden vacation that you plan with your family or urgent funds required for medical treatment or purchase of furniture or household appliances, or house renovation & interior decoration, marriage in family or advance rental payment, Higher education & training?

Shahjalal Islami Bank Investment Scheme for executives is the answer to your questions.

SJIBL VISA Debit Card:

To a customer, “My card, my money” concept is used for Debit Card. Any account holder of SJIBL can apply for an SJIBL VISA Debit Card against his/her Al-Wadiah Current Deposit (AWCD), Mudaraba Savings Deposit (MSD) or Mudaraba Short Notice Deposit (MSND) Account. He/she is fully authorized to enjoy the benefits of cash withdrawal from ATMs, liberty of shopping, dining, paying utility bills and having access account information through SMS, etc. round the clock.

 SJIBL VISA Prepaid Card (International):

SJIBL VISA Prepaid International Cards are also open to the customers even having no account with Shahjalal Islami Bank Limited. Cardholders can have the card endorsing US Dollar paying against Travel Quota, Exporters Retention Quota or marking Lien of his/her FC Account. SJIBL VISA Prepaid International Cards are accepted worldwide at all the VISA labeled merchant outlets, ATMs, etc.

SJIBL VISA Prepaid Card (Dual):

The Dual Card is a hassle-free product, no need to carry two separate plastic cards for local and international use. Now, with one plastic card, the Cardholders can enjoy all the benefits and make transactions locally & globally from their Prepaid card account at all the VISA labeled merchant outlets, ATMs, etc.

SJIBL VISA Souvenir Card (Gift Card – Local):

SJIBL Souvenir Card is a very attractive and stylish product. Like a Gift Card, SJIBL Souvenir Card can be used by anyone wishes to. The intending customer may have the card instantly or may customize the card as required. The SJIBL Souvenir Cards are accepted locally at all the VISA labeled merchant outlets, ATMs, etc.

SMS Service :

Welcome to the convenience of accessing your banking needs from anywhere anytime. Shahjalal Islami Bank again fulfilled the demand of time in the era of modern banking technology by introducing the Mobile banking i.e. SMS / Push-Pull Service. We offer a range of ways for you to access and manage your money.

Mobile Banking is a secured & flexible solution that delivers banking services to its customers through a range of mobile devices using SMS / Push-Pull technology. It provides banking services to the registered clients access to account information and real-time transaction capabilities from the mobile phones at a true “Anywhere, Anytime, Anyhow” convenience.

As a leading private sector bank in Bangladesh, the Shahjalal Islami Bank Limited presents the Mobile banking i.e. SMS / Push-Pull service.

Services:

1. Balance Inquiry
2. Cheque Book Request
3. Cheque Leaf Status
4. FC Rate Information
5. Check Stop Payment Instruction
6. Statement Request by Courier/Post
7. Statement request by E-mail
8. Last Three Transaction Statement
9. Help inquiry
10. PIN Change

 Internet Services:  

Shahjalal Islami Bank is computerized and provides the following services some of these services will be introduced soon. Shahjalal Islami Bank Limited introduced a few schemes, which are very popular:

• Online services
• Automated Accounting
• Integrated System
• Signature Verification
• Any Branch Banking
• ATM Services
• POS Services
• SMS Push-Pull Services 9. Other Delivery Channel Services (to be implemented)

Research Methodology :

Research Design

With the intention of identifying Problems, an exploratory research design was selected as suitable for this study. The purpose of the study is to investigate current problems in the products and services of Shahjalal Islami Bank Limited.

Research Approach

The main purpose of this research is to find out the Problem in the products and services of Shahjalal Islami Bank Limited. In order to get the essential information for the research, the researcher is suggesting qualitative research. To identify the problems the researcher will use several questions for primary data, there be taken depth interviews, conduct expert survey, and use secondary data.

Sampling

1.Target population: a total of 50 clients in Shahajalal Islami Bank Limited.

2.Elements: Which clients are involved in this bank and other banks for the last five years.

3. Extent: Dhaka city.

4. Sampling frame: Sampling frame for the study has collected from Shahajalal Islami Bank Limited (SJIBL) has a detail list of Clients of Dhaka city.

Sample size: Clients = 50.

5.Organization experts: 3.

6.Sampling procedure: Convenience sampling procedure has been selected for this study.

Research Instruments

Structured interview question has used for depth interview.

Data Collection Procedure

Interview method has used for data collection. Before taking the interview have made some structure interview question. This was face to face interview.

Questionnaire:

Three structured Questionnaire was utilized for this project.  Most of the Questions open-ended. Questions were based on specific objectives of the project.

The Services of Shahjalal Islami Bank Limited and Individual Analysis of these Services:

• Account Services
• Deposit Schemes
• Loan Services
• ATM Card Services
• SMS Service
• Internet Services

 Account Services:

Questionnaire:

which questionnaire is used to find out the problems of account services in Shahjalal Islami Bank Limited. Those are given below:

• Do you face any problems in account services of Shahjalal Islami Bank Limited?
• What are the problems in account services of Shahjalal Islami Bank Limited?

Problems:

Problems are given below:

• There are some problems in account services of Shahjalal Islami Bank Limited.
• Lack of seating arrangement for the waiting customers.
• Sometimes it seemed to me that charges and other fees are very high compared to other private banks. It frequently creates customer dissatisfaction.
• Sometimes the Customer Service Officers were so busy that it creates a delay to the customer service. And at the end of the day, the closing was also delayed.
• Charges of statement or certificates are very high.
• Shahjalal Islami Bank Limited also hasn’t a proper monitoring system.
• Branches are very much enthusiastic to provide more service to the clients. General Banking Division is an efficient department. They are very much prompt to give the decision to their valued client. Head Office Credit committee sits regularly on a weekly basis. They never keep any things pending.
• Lack of good cooperation is identified among the work procedures and among the employees of the bank, which results in lengthiness and ineffective service. The employees of the bank cannot provide effective and efficient services to the customers because of the lack of a computer facility.

Deposit Schemes:

Questionnaire:

which questionnaire is used to find out the problems of Deposit Schemes in Shahjalal Islami Bank Limited. Those are given below:

• Do you face any problems in Deposit Schemes of Shahjalal Islami Bank Limited?
• What are the problems in Deposit Schemes of Shahjalal Islami Bank Limited?

Problems:

Problems are given below:

• There are some problems in Deposit Schemes of Shahjalal Islami Bank Limited.
• Huge procedure.
• Deposit interest rate is low between the other banks.
• After maturity In a fixed deposit, they deducted some other charges.
• Long procedure to withdraw interest.
• It is not so much well-known Bank.
• The investment of the branch is too low in comparison to the total deposits of the branch.
• Limited Market Share.

Loan Services:

Questionnaire:

which questionnaire is used to find out the problems of Loan Services in Shahjalal Islami Bank Limited. Those are given below:

• Do you think there have any problems in Loan Services of Shahjalal Islami Bank Limited?
• What are the problems in Loan Services of Shahjalal Islami Bank Limited you think?

Problems:

Problems are given below:

• there are some problems in Loan Services of Shahjalal Islami Bank Limited.
• High-interest rate.
• Long Procedure.
• They want huge papers for loan processing.
• Without a mortgage, nobody can get more amount of money.
• There some limitation of companies who are not allowed to get a loan.
• The Bank has given less emphasis on long-term financing.
• Shahjalal Islami Bank Limited has a lack of strong supervision for which loans have defaulted.
• In terms of repayment large loan has performed better than the small-sized loan.
• Dependent on fixed deposits.
• Limitation in ages of the client.

ATM Card Services:

Questionnaire:

which questionnaire is used to find out the problems of ATM Card Services in Shahjalal Islami Bank Limited. Those are given below

• Do you face any problems in ATM Card Services of Shahjalal Islami Bank Limited?
• What are the problems in ATM Card Services of Shahjalal Islami Bank Limited?
• What kind of problems is more affected in this bank you think?

Problems:

Problems are given below:

• there are some problems in ATM Card Services of Shahjalal Islami Bank Limited.
• More charges between some other bank.
• Not more ATM both.
• Most of the time there was a problem with the ATM machine. In ATM, It sometimes remained out of order, some time out of cash and sometimes customer face the problem of cash and credit capture.
• Cash withdrawal limit (total time).
• Cash withdrawal limit (amount).

SMS Service:

Questionnaire:

which questionnaire is used to find out the problems of SMS Services in Shahjalal Islami Bank Limited. Those are given below:

• Have you faced any problems in SMS Services of Shahjalal Islami Bank Limited?
• What are those problems in SMS Services of Shahjalal Islami Bank Limited that you faced?

Problems:

Problems are given below:

• there are some problems in SMS Services of Shahjalal Islami Bank Limited.
• Limited branch network.
• Charges of SMS Service are very high.

Internet Services:

Questionnaire:

which questionnaire is used to find out the problems of Internet Services in Shahjalal Islami Bank Limited. Those are given below:

• Do you face any problems in Internet Services of Shahjalal Islami Bank Limited?
• What are the problems in Internet Services of Shahjalal Islami Bank Limited?

Problems:

Problems are given below:

• there are some problems in Internet Services of Shahjalal Islami Bank Limited.
• This bank started on-line service newly. As a resulted customers are not getting the full service by the online service. Sometimes they have to face a problem with the online account.
• The number of human resources in the Computer section is really insufficient to give services to a huge number of customers.
• Absence of an upgraded website.

Finding

Account Services Problems:

• Lack of seating arrangement for the waiting customers.
• Sometimes it seemed to me that charges and other fees are very high compared to other private banks. It frequently creates customer dissatisfaction.
• Sometimes the Customer Service Officers were so busy that it creates a delay to the customer service. And at the end of the day, the closing was also delayed.
• Charges of statement or certificates are very high.
• Shahjalal Islami Bank Limited also hasn’t a proper monitoring system.
• Branches are very much enthusiastic to provide more service to the clients. General Banking Division is an efficient department. They are very much prompt to give the decision to their valued client. Head Office Credit committee sits regularly on a weekly basis. They never keep any things pending.
• Lack of good cooperation is identified among the work procedures and among the employees of the bank, which results in lengthiness and ineffective service. The employees of the bank cannot provide effective and efficient services to the customers because of the lack of a computer facility.

Deposit Schemes Problems:

• Huge procedure.
• Deposit interest rate is low between the other banks.
• After maturity In a fixed deposit, they deducted some other charges.
• Long procedure to withdraw interest.
• It is not so much well-known Bank.
• The investment of the branch is too low in comparison to the total deposits of the branch.
• Limited Market Share.

Loan Services Problems:

• High-interest rate.
• Long Procedure.
• They want huge papers for loan processing.
• Without a mortgage, nobody can get more amount of money.
• There some limitation of companies who are not allowed to get a loan.
• The Bank has given less emphasis on long-term financing.
• Shahjalal Islami Bank Limited has a lack of strong supervision for which loans have defaulted.
• In terms of repayment large loan has performed better than a small-sized loan.
• Dependent on fixed deposits.
• Limitation in ages of the client.

ATM Card Services problems:

• More charges between some other bank.
• Not more ATM both.
• Most of the time there was a problem with the ATM machine. In ATM, It sometimes remained out of order, some time out of cash and sometimes customer face the problem of cash and credit capture.
• Cash withdrawal limit (total time).
• Cash withdrawal limit (amount).

SMS Service Problems:

• Limited branch network.
• Charges of SMS Service are very high.

Internet Services Problems:

• This bank started on-line service newly. As a resulted customers are not getting the full service by the online service. Sometimes they have to face a problem with the online account.
• The number of human resources in the Computer section is really insufficient to give services to a huge number of customers.
• Absence of an upgraded website.

Recommendation

Account Services

• Customer service should be faster than that of some other banks.
• As authorized dealers, SJIBL must follow rules regulation regarding currency transactions in all aspects. It should time to time provide all necessary information to officers of all department for adequate knowledge about applying rules and regulations in every related transaction.
• Giving better customers service.
• To arrange more employee for reducing the pressure.
• The employees must give enough time to the customers while talking with them. Otherwise, the customer may feel they are not that much care. If a customer asks anything, again and again, the employees should keep patience and answer.
• The yearly charge should be lower.

Deposit Schemes

• SJIBL has to ensure employee satisfaction.
• The recording procedures and documents keeping the process of in this department must be improved through sequential effort system and for all type recording of this department should be computerized to get this improvement.
• Customer of this department should be offered occasional gifts and discounts, attractive incentives that can make service more attractive and keep consumer delight.

• New investment schemes should be introduced to meet customer demands.

Loan Services

• The process opening documentary credit and steps followed by SJIBL to the settlement of documentary credit should be liberalized as much as possible.
• Investment department of SJIBL should provide adequate computerized network facilities that will ultimately provide support to all officers of this department and as well as improve the quality of customer service by increasing swiftness of activity.
• SJIBL has kept a huge number of files regarding export and import. As the huge volume of files is kept so it’s not all time possible for officers to keep the proper format of those files so all officers of this department should try to reduce these irregularities.

 ATM Card Services

• SJIBL provide a lot of ATM booth for there client but the problem is that some time technical problems are occurring. So they should look after it carefully.
• ATM Facility should be increased.

• Cash withdrawal limitation (total time) should be increased.

• Cash withdrawal limitation (amount) should be increased.

 SMS Service

• SJIBL should improve its technical support and communication network system by using the different advance technological support system.

• Employee training and workshops should be administered in order to give them knowledge and professionalism in customer interactions.

• They should increase the branch network.

Internet Services

• The website of SJIBL should upgrade regularly.
• Introducing high technology in the banking sector and provide training facilities for the banker.
• I want to recommend to Bangladesh Bank, that they should Emphasize Online banking for both Private and public banking. Because this is the way that the banking sector can reach an optimal level.

As above those, all incentives that are necessary to improve the quality of service of the foreign exchange department of SJIBL must be taken. SJIBL as service providing organization provides services through all its departments so the quality of services must be increased to attract and extend customers.

Conclusion

Shahjalal Islami Bank Ltd, Satmasjid Road branch is one of the most potential Islami banks in the Islami banking sector. It has a large portfolio with huge assets to meet up its liabilities and the management of this bank is equipped with the expert bankers and managers in all level of management. So it is not an easy job to find out the drawbacks of this branch as a new branch. But the branch needs more employees for its substantial growth. I would rather feel like producing my personal opinion about the ongoing practices in  Satmasjid Road Branch.

Shahjalal Islami Bank Limited is a leading Private Islami bank in Bangladesh with superior customer bases that are loyal, faithful, worthy towards the bank. The service provided by the young energetic officials of the Shahjalal Islami Bank Limited is very satisfactory. As an Islami bank SJIBL has to follow the rules of Bangladesh bank despite the fact that these rules sometimes restrict the foreign business to some extent. During my internship in this branch, I have found its General Banking and Investment department to be very efficient; therefore this department plays a major role in the overall profitability of the branch and to the Bank as a whole.

The Bank’s drive towards market leadership, as well as quality in choosing a business, will continue in the coming years although competition is intensified with the opening of more financial institutions. The Bank is optimistic that the volume of business will increase in the future through pragmatic and market-friendly policies. The Bank shall continue to explore new Branches for Banking. We shall endeavor to adopt customer-oriented policies and introduce new techniques that will help to earn profit and increase greater confidence in the existing/ prospective customers. If Shahjalal Islami Bank Ltd,  Satmasjid Road Branch adopts professionalism within the framework of Shariah, they will be able to earn handsome “Halal Profit” and higher return to the depositors and shareholders. Ultimately, the public will get more confidence in this type of Banking.

Appendix:

Questionnaire:

which questionnaire is used to find out the problems of account services in Shahjalal Islami Bank Limited. Those are given below:

• Do you face any problems in account services of Shahjalal Islami Bank Limited?
• What are the problems in account services of Shahjalal Islami Bank Limited?
• Do you face any problems in Deposit Schemes of Shahjalal Islami Bank Limited?
• What are the problems in Deposit Schemes of Shahjalal Islami Bank Limited?
• Do you think there have any problems in Loan Services of Shahjalal Islami Bank Limited?
• What are the problems in Loan Services of Shahjalal Islami Bank Limited you think?
• Do you face any problems in ATM Card Services of Shahjalal Islami Bank Limited?
• What are the problems in ATM Card Services of Shahjalal Islami Bank Limited?
• What kind of problems is more affected in this bank you think?
• Have you faced any problems in SMS Services of Shahjalal Islami Bank Limited?
• What are those problems in SMS Services of Shahjalal Islami Bank Limited that you faced?

• Do you face any problems in Internet Services of Shahjalal Islami Bank Limited?
• What are the problems in Internet Services of Shahjalal Islami Bank Limited?