Internship Report

On
“General Banking of Al-Arafah Islami Bank Limited”

European University of Bangladesh

i
 Internship Report
On
“General Banking of Al-Arafah Islami Bank Limited”

Prepared By
Jannatul Ferdaus Shimu
ID: 140101006
Program: Bachelor of Business Administration
Department of Business Administration
European University of Bangladesh

Prepared For
Tasnia Zannat
Lecturer
Department of Business Administration
Faculty of Business and Industrial Management
European University of Bangladesh

European University of Bangladesh

Date of Submission: 4th May 2018

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 DECLARATION

I declare that the Internship report is entitled “General Banking of Al-Arafah Islami Bank
Limited”, submitted as requirement of Bachelor of Business Administration of European
University of Bangladesh (EUB) was prepared by me. I tried my best to collect necessary
information that made the report specific and original. I may assure you that the report was
solely prepared by me.

………………………………

Jannatul Ferdaus Shimu

ID: 140101006
Program: Bachelor of Business Administration
Department of Business Administration
European University of Bangladesh

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 LETTER OF TRANSMITTAL
Tasnia Zannat
Lecturer,
Department of Business Administration
European University of Bangladesh
2/4, Gabtoli, Mirpur, Dhaka 1216.

Subject: Submission of the Internship Report.

Dear Madam,
It is a great pleasure for me to submit the internship report as a part of my BBA program to
you that I am assigned to prepare under your direct supervision of the topic entitled “General
Banking of Al-Arafah Islami Bank Limited”. I have completed the Internship in Al-
Arafah Islami Bank Limited. I have tried to exert all the knowledge that I gathered through
my working with this branch of Al-Arafah Islami Bank Ltd. Working for three months (16
Oct, 2017 to 9th Jan, 2018) in the Al-Arafah Islami Bank Limited, Mirpur10 Branch
helped me to fulfil the requirements of obtaining practical learning and subsequently prepare
of this report. My internship in Al-Arafah Islami Bank Limited was a worthwhile experience
and the exposure of such an organization would be valuable for me. Before facing the real
business world, I have gathered prior knowledge about the organization culture. Thank you
very much for your kind cooperation without which this Internship Report cannot be
completed. I like to take every opportunity to express my gratitude of indebtedness to you.

Sincerely yours,

__________________________
Jannatul Ferdaus Shimu
ID: 140101006
Program: Bachelor of Business Administration
Department of Business Administration
European University of Bangladesh

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 CERTIFICATE OF SUPERVISOR

This is to certify that Jannatul Ferdaus Shimu, a student of European University Of

Bangladesh of BBA Program, major in Finance, ID: 140101006, has successfully completed
her internship program and prepared the report entitled “General Banking of Al-Arafah
Islami Bank Limited (AIBL)” under my supervision as the partial fulfillment of the BBA
degree.

To the best of my knowledge and as per her declaration the report is an authentic work and
has not been submitted anywhere for awarding any degree. I think this program will help her
in the future to build up her career.

I wish her all success in life.

.............................................
Tasnia Zannat
Lecturer,
Department of Business Administration
Faculty of Business and Industrial Management
European University of Bangladesh

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 ACKKNOWLEDGEMENT
All gratitude and thanks to almighty “ALLAH” the gracious, the most merciful and
beneficent who gave me courage to undertake and complete this task. I am very much obliged
to my ever caring and loving parents whose prayers have enabled to reach this stage.

This internship report would not have been possible without the support of many people. First
and foremost, I would like to thank to my internship supervisor of this report Tasnia Zannat
for the valuable guidance and advice. Her suggestions and comments to make the report a
good one was really a great source of spirit for me. Her willingness to motivate me
contributed tremendously to my report. My heartfelt thanks to our Honorable Vice
Chancellor, Professor Dr. Mokbul Ahmed Khan, and Advisor, BBA Program and all
other faculty members of Dept. of Business Administration (BBA) in European University
Of Bangladesh, who recommended me to Al-Arafah Islami Bank Limited as an intern and
gave me a big opportunity to prepare my report successfully.

I would like to express my gratitude to Jb. S.M. Zabidul Haque, VP and Manager, Jb.
Mahbubur Rahman, SPO and 2nd Officer, Al-Arafah Islami Bank Limited, Mirpur Circle-
10 Branch, for giving me the opportunity, appointment for the internship program that I have
completed, and Jb. Abdur Rob Sheikh, SEO and GB In-charge (including remittance) who
help me without considering any business purpose and also sharing his practical experience. I
would like to give a very special thanks to Sheikh Mokammel Zaher, (Officer) for his
cooperation. I must mention the wonderful working environment of this bank that enabled
me to gather practical knowledge about the banking operations.

I also express my sincere gratitude to all the people/customers who participated in my

observation and answered my questions. Though they were busy clients, yet their patience,
positive attitude and responses provided me valuable inputs in preparing this report.

.....................................
Jannatul Ferdaus Shimu
ID: 140101006
Program: Bachelor of Business Administration
Department of Business Administration
European University of Bangladesh

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 PART NO. TITLE PAGE
NO.
INTRODUCTION 01
1.1 Origin of the Report 02
1.2 Rationale of the Study 02
CHAPTER

1.3 Objectives of the Study 03

1.4 Scope of the Study 03
01

1.5 Methodology of the Study 03

1.5.1 Data Collection 03
1.5.2 Data Processing 04
1.6. Limitations of the Report 04
PROFILE OF AL-ARAFAH ISLAMI BANK LIMITED 05
2.1 Historical Background of Al-Arafah Islami Banking Ltd. 06
2.2 Islamic Banking Movement in Bangladesh 06
2.3Vision, Mission & Commitments of AIBL 08
2.4 Schemes of AIBL 09
2.5 Management 10
2.6 Board of Directors 10
CHAPTER

2.7 Organization Structure of AIBL 11

02

2.8 Sections and Their Functions 12

2.8.1 General Banking Division 12-13
2.8.2 Investment Division 14
2.8.3 Human Resource Division 14
2.8.4 Marketing 14
2.8.5 Monitoring 15
2.9 Branches of AIBL 16
CONCEPTUAL FRAMEWORK 17
CHAPTER

3.1 General Banking 18

03

3.2 GB Sections: 18
3.3 Telegraphic Transfer (TT) 18

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 3.4 Demand Draft (DD) 19
3.5 Electronic Funds Transfer (EFT) 19-20
3.6 Automated Clearing House (ACH) 20
3.7 Cheques 20-21
3.8 Fixed Deposits 21
Internship Duties and Responsibilities 22
CHAPTER

4.1 Internship Duties and Responsibilities 23-24

04

Analysis and Findings 25

5.1 Grading of Customers 26-27
CHAPTER

5.2 Total Deposit: 28

05

5.3 Performance of Foreign: 29

5.4 Findings of the study: 30
5.5 SWOT Analysis 30-33
Recommendation and Conclusion 34
CHAPTER

6.1. Recommendations 35-36

6.2. Conclusion 37
06

CHAPTER References 38
06

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 EXECUTIVE SUMMARY
Bank provides means and mechanisms of transferring resources from those who have an
excess of income over expenditure to those who can make use of the same for adding to the
volume of productive capital. The bank provides them with the safety, liquidity and
profitability of savings. Al-Arafah Islami Bank Limited is scheduled commercial bank
registered by the Bangladesh Bank. The functions of the bank cover a wide range of banking
and functional activities to individuals, firms, corporate bodies and other multinational
agencies. The main objective of the study is to give an overview of AIBL and identify the
strength, weakness and critical risk factor of this bank. Data collected for the study in two
different modes namely primary and secondary. Face to face conversation with the respective
officer of the branch was the main mode to collect primary data and for secondary data
various publications and related body are observed. The main limitation of the study was
short time limit and authenticated data insufficiency. Even though many of the bank officials
simply know the working procedure of what they are doing they don't know the philosophy
behind doing those. The synergy of dedicated manpower, technology, and market opportunity
can lead the organization to achieve the goal; a bank must establish and hold fast to adequate
policies, practices and procedures for evaluating the quality of asset and the adequacy of loan
provision.

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 ACRONYMS
AIBL : Al- Arafah Islami Bank Limited
MD : Managing Director
DMD : Deputy Managing Director
EVP : Executive Vice President
SVP : Senior Vice President
VP : Vice President
AVP : Assistant Vice President
FAVP : First Assistant Vice President
BB : Bangladesh Bank
BCD : Bearer Certificate of Deposit
OB : On line Banking
BBLC : Back to Back Letter of Credit
BL : Bill of Lading
AWCD : Al Wadiah Current Deposit A/C
MTDR : Mudaraba Term Deposit
ITD : Installment Term Deposit
SND : Short Notice Deposit
MSD : Mudaraba Savings Deposit
STD : Short Term Deposit
PTD : Profit Term Deposit
IBC : In ward Bills for Collection
OBC : Out ward Bills for Collection
LC : Letter of Credit
CC : Cash Credit
DD : Demand Draft
OD : Over Draft
TT : Telegraphic Transfer
PO : Pay Order
PAD : Payment Against Document
LTR : Loan against Trust Receipt
LIM : Loan against Imported Merchandise
SOD : Secured Over Draft
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