Internship Report of Muminul Hoque Fahim PDF

An Internship Report
On
"General Banking Activities of ICB Islamic Bank Limited Sylhet
Branch, Sylhet"
Submitted By:
Muminul Hoque Fahim

ID: 161-116-132
BBA 39th Batch
Major in Marketing
Department of Business Administration
Metropolitan University, Sylhet
Supervised By:
Md. Afsarul Islam
Senior Lecturer
Metropolitan University, Sylhet.
Date of Submission: 17th September, 2020
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Letter of Transmittal
September, 2020
17 th
Md. Afsarul Islam

Senior Lecturer
Subject: Submission of Internship Report

Respected Sir,
It is my pleasure to submit my internship report on “General Banking Activities of ICB Islamic

Bank Limited-Sylhet Branch, Sylhet” I am submitting this report as the part of fulfilling my
BBA degree. This report attempts to describe my observations and learning during the study of
this course.
In case of preparing this report, I tried my best to follow your instructions as well as the
instructions given by my organization supervisor. The full report is based on my practical
experience in ICB Islamic Bank Limited, Sylhet Branch, Sylhet I have tried my best to make this
internship report comprehensive and informative as much as possible within the time allowed for
me. Due to various limitations there may be some mistakes for which I beg your apology.
Finally, I shall be glad to answer any kind of query relating to this internship report, if necessary.
Sincerely Yours,
Muminul Hoque Fahim

ID: 161-116-132
BBA 39th Batch
Major in Marketing
Metropolitan University, Sylhet
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Administration Metropolitan
University, Sylhet. [
Md. Afsarul Islam

Senior Lecturer
Department of Business
Ref No: 2020/BBA/08/39 Date: 17/09/2020
CERTIFICATE OF THE SUPERVISOR

This is to certify that Muminul Hoque Fahim is a student of BBA, 39th batch, ID: 161-116-132,
Major in Marketing, Department of Business Administration, Metropolitan University, Sylhet. He
has successfully completed the internship report on “General Banking Activities of ICB
Islamic Bank Limited” under my direct supervision & guidance. During the period he worked
in Sylhet Branch of ICB Islamic Bank Limited from 01st February, 2020 to 30th April 2020.
I also certify that the report is an original one and has not been submitted elsewhere previously in
any form. He is sincere, honest and hardworking. I hope that this report will contribute in his
career.
I wish his every success in life.
Md. Afsarul Islam

Senior Lecturer
Al-Hamra, Zindabazar, Sylhet-3100, Bangladesh

Phone: +880 821 816198, 816199 Fax: +880 821 713304 E-mail:
info@metrouni.edu.bd www.metrouni.edu.bd
Established in 2003, Metropolitan University is approved by
The Government of the Peoples Republic of Bangladesh and the University Grants Commission Bangladesh.
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Acknowledgement
At the beginning I would like to express my deepest gratitude to Almighty Allah for giving me
the strength and the composure to finish the task and the most merciful blessing with patience and
tenacity of mind to complete the requirements for the degree successfully. The internship has
been a very good experience for me in the way that it has given me the chance to understand the
real world outside the classroom. I’ve learnt a lot about the office environment and my
interpersonal skills & self-confidence have improved significantly. Firstly, I express my deep
sense of gratitude to my honorable advisor, Md. Afsarul Islam (Senior Lecturer, Metropolitan
University, Sylhet) for his endeavor approach and outstanding supervision by which it has been
possible for me to make a good combination of theoretical & practical knowledge in preparing
this report.
I forfeit my respect to Abu Adid Mohammed Rumman, Branch Manager of ICB Islamic Bank
head of Sylhet Branch, Sylhet under whom I have learnt a lot of practical knowledge. Also his
guidance, advice and cooperation allowed me to complete this report successfully. Without their
kind supervision, preparing this report would have been very difficult. I am also thankful to them
for providing me all the relevant and available information to have a clear concept regarding the
subject. I am also grateful to other employees of ICB Islamic Bank of Sylhet Branch as well as &
Md. Delwar Hussain (Branch Operation Manager), Ahmed Hussain Farjan (Cash In
charge) , and Customer service officers for cooperation and direction in getting necessary
information.
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Executive Summary
A Bank is a financial foundation whose fundamental point is to acquire benefit through trade of
cash and credit instruments. At present this segment is ending up to a high degree aggressive with
the entry of multinational banks and also developing an innovative framework, successful credit
administration, higher execution level, and most extreme consumer loyalty. This report has been
prepared on “General Banking Activities of ICB Islamic Bank Limited-Sylhet
Branch,Sylhet” In this report, the first chapter shows different aspects of the report like a brief
introduction, background, objectives, scope, methodology, and limitations of the study.
The objectives of this report are to know the brief overview of ICB Islamic Bank Ltd., The
performance of electronic banking, customer services that provided at different sections and to
find out some internal & external lacking that would help ICB Islamic Bank Ltd. for more
progress in near future.
The Third chapter shows a brief company overview. In this section different essential data about
ICB Islamic Bank Limited is provided. History, mission, vision, strategic objectives, the
organizational hierarchy of ICB Islamic Bank information is presented in this chapter. The fourth
chapter shows the General Banking Activities of ICB Islamic Bank Ltd. I have also discussed
about my task as an intern in the fifth chapter of this report. Application of knowledge gained
during BBA Program. The Six chapters are Marketing Techniques of ICB Islamic Bank is
discussed in respectively & The Last Chapter shows in the Findings, Recommendations &
Conclusion.
Some recommendations based on findings that ICB Islamic Bank should have bigger branch
premises for an increased number of customers and more sitting arrangement should be made for
their clients. The bank should raise the ATM booth across the country as early as possible. In
conclusion, it can be said, services of ICB Islamic Bank Ltd. Sylhet Branch still possess excellent
potentiality. They have outstanding chances in the marketplace to utilize, and they can stay in the
industry with fall profitability by implementing several current pertinent tactics. To keep up the
hopes of the customers, they have to take all needed actions to please their customers.
I hope that my report would give a trough insight to all these responsibilities as an intern.
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Table of Content
Contents Page No
CHAPTER ONE : 01-04 INTRODUCTION
1.1. INTRODUCTION 02 1.2. O
RIGIN OF THE STUDY 02-03 1.3. OBJECTIVES OF THE
STUDY 03 1.4. SCOPE OF STUDY 03 1.5 SIGNIFICANCE OF THE REPORT 03 1.6.
LIMITATIONS OF THE STUDY 03-04
CHAPTER TWO: 05-17 OVERVIEW OF BANKING INDUSTRY
2.1 DEFINITION OF BANK: 06 2.2 HISTORY OF BANKING 06-10 2.3
DEFINITION OF BANKING 10 2.4 DEFINITION OF BANKER 10 2.5
DEFINITION OF ISLAMIC BANK 10 2.6 LAW OF BANKING 10-11 2.7
FEATURES OF A BANK 11-12 2.8 FUNCTIONS OF A BANK 12 2.9 HISTORY OF
BANKING INDUSTRY IN BANGLADESH 12-13 2.10 HISTORY OF ISLAMI
BANK IN BANGLADESH 13-14 2.11 BANKS OF BANGLADESH AT A GLANCE
14-17 2.12 NON-BANKING FINANCIAL INSTITUTIONS 17
CHAPTER THREE: 18-25 OVERVIEW OF ICB ISLAMIC BANK LTD.
3.1. HISTORY 19-20 3.2 MISSION 20

3.3 VISION 21 3.4 NATURE OF BUSINESS: 21
3.5. SIGNIFICANT ACCOUNTING POLICES BASIS OF ACCOUNTING: 21 3.6
CONSOLIDATION: 21
3.7 BALANCE WITH OTHER BANKS AND EXCHANGE GAINS OR
21
LOSSES:
3.8 INVESTMENTS: 21-22 3.9. BOARD OF DIRECTORS: 22 3.10 MANAGEMENT
COMMITTEE: 22 3.11 SYLHET DIVISION: 22 3.12. PRODUCT & SERVICES OF
ICB ISLAMIC BANK LTD. 23-24 3.13. E LECTRONIC BANKING AT ICB ISLAMIC
BANK LTD. 24
3.13.1 SMS Banking 24 3.13.2 Online and Internet Banking 24 3.13.3 Internet Banking 25
3.13.4 ATM information 25
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CHAPTER FOUR: 26-34 GENERAL BANKING ACTIVITIES OF ICB ISLAMIC
BANK LTD.
4.1 GENERAL BANKING (WORK RELATED ACTIVITIES) 27 4.2 VARIOUS

TYPES OF DEPOSIT ACCOUNT 27 4.2.1 Al-Wadia Current Deposit 27 4.2.2
Mudaraba Saving Deposit (MSD) 28 4.2.3 Mudaraba Term Deposit Receipt (MTDR)
28 4.2.4 Installment Term Deposit (ITD) 28-29
4.2.5 Short Notice Deposit (SND) 29 4.2.6 Mudaraba Double Deposit (MDD) 29
4.2.7 Mudaraba Lakhopoti / Of The Schemes
Millionaire/Kotipoti Schemes Conditions 29-30
4.3 PROFIT RATES OF ICB ISLAMIC ON DIFFERENT DEPOSITS 30 4.4

GENERAL PROCEDURE OF ACCOUNT OPENING 30-31 4.5 GENERAL
PROCEDURE OF ACCOUNT CLOSING 31 4.6 CLEARING SECTION 31-32 4.7
BANKER’S CHEQUE (BC) 32 4.8 INTER BRANCH CREDIT ADVICE (IBCA) 32
4.9 INTER BRANCH DEBIT ADVICE (IBDA) 32 4.10 REMITTANCE SECTION 32
4.11 PAYMENT ORDER (P.O.) 33 4.12 DEMAND DRAFT (D.D.) & TELEGRAPHIC
TRANSFER (T.T.) 33 4.13 CASH SECTION 33 4.14 INVESTMENT
(ORGANIZATION WIDE ACTIVITIES) 33-34 4.15 OTHER RELEVANT
ACTIVITIES 34
CHAPTER FIVE: 35-37 MY JOB AS AN INTERN
5.1 MY JOB AS AN INTERN: 36 5.1.1 Front Desk 36 5.1.2 Clearing 36 5.1.3 Cash
Department 36-37
5.1.4 Accounts Department 37 5.1.5 Foreign Remittance 37 CHAPTER SIX: 38-41
APPLICATION OF KNOWLEDGE GAINED DURING BBA PROGRAM
ACCOMPLISH EACH TASK
6.1 APPLICATION OF KNOWLEDGE GAINED DURING BBA PROGRAM ACCOMPLISH
39
EACH TASK
6.1.1 PRINCIPLES OF MANAGEMENT 39 6.1.2 PRINCIPLES OF ACCOUNTING: 39 6.1.3
OMMUNICATION: 39 6.1.4 BANKING AND INSURANCE AND BANKING LAW AND
BUSINESS C
PRACTICE: 39-40
6.1.5 ORGANIZATIONAL BEHAVIOR (OB): 40 6.1.6 MANAGEMENT INFORMATION AND
CONTROL SYSTEM (MICS): 40
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6.1.7 HUMAN RESOURCE MANAGEMENT (HRM): 40 6.1.8 BUSINESS RESEARCH
METHOD: 40-41
CHAPTER SEVEN: 42-45 MARKETING TECHNIQUE OF ICB ISLAMIC

BANK LTD.
7.1 CUSTOMER-DRIVEN MARKETING STRATEGY BY ICB ISLAMIC
43
BANK LTD.
7.2 SEGMENTATION STRATEGY OF ICB ISLAMIC BANK LTD. 43 7.3
TARGETING STRATEGY OF ICB ISLAMIC BANK LTD. 43 7.4
DIFFERENTIATION OF ICB ISLAMIC BANK LTD. 43 7.5 MARKET
POSITIONING STRATEGY 44
7.6 INTEGRATED MARKETING FINDINGS, RECOMMENDATIONS,
COMMUNICATIONS (PROMOTION CONCLUSION
MIX) USED BY 44-45
CHAPTER EIGHT: 46
8.1 FINDINGS 47 8.2 RECOMMENDATIONS 48 8.3 CONCLUSION 49-50

REFERENCE 51
Acronyms & abbreviations 52
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Chapter One:
INTRODUCTION
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1.1. INTRODUCTION
As ICB Islamic Bank Ltd is one of outmost successful private bank in banking sector of
Bangladesh is always one step ahead to other competitors in serving the customers, & satisfying
them. Its goal to provide highest customer services through togetherness with its customers, It
also provides Green Banking Services, Retail Banking, Corporate Banking, Investment Banking,
Merchant Banking & Project Finance, Money Transfer, Remittance Services and so on. The
internship program is required for the student of BBA. It is a program with duration of three
months. Students who have completed all the required courses are eligible for this program. In the
internship program I was attached to the ICB Islamic Bank Ltd for three months. Banking in the
21st century has exceeded the conventional loan deposit concept. Rather than maintaining day to
day transaction, modern banking now emphasizes on long term relationship with customer,
society, & government. In recent times, expansion & innovation of modern banking are
remarkable catalyst in Bangladesh. Furthermore, ascend of information technology has blessed
the banking system & thus people enjoy the classy banking. It also introduces enthusiasm &
drive in economy’s growth through providing such source of investment. Banking services are
extremely important in free market economy. Consequently, customer satisfaction should be the
top priority of any bank. 1.2. ORIGIN OF THE STUDY
Bachelor of Business Administration (BBA) course requires 90 days or three month attachment
with a bank followed by a report assigned by the supervisor in the organization and endorsed by
the faculty advisor. I took the opportunity to do my internship in ICB Islamic Bank Ltd. My
supervisor Md. Afsarul Islam Senior Lecturer, Department of Business Administration, Major in
of Marketing, Metropolitan University (MU), also approved the topic and authorized me to
prepare this report as part of the fulfillment of internship requirement. The report thus was titled
as “General Banking Activities of ICB Islamic Bank Ltd.-Sylhet Branch, Sylhet”.This
internship program and the study have following purposes:-
✔ To fulfill the requirement of BBA Program;
✔ To experience the real banking world;
✔ To get and organize detail knowledge on the job responsibility;
✔ To get enough knowledge about General banking activities of ICB Islamic Bank Ltd.
✔ To apply theoretical knowledge in the practical field and
✔ To find out the overall features of ICB Islamic Bank Ltd.
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1.3. OBJECTIVES OF THE STUDY
Behind this report, there have some objectives, which must have to fulfill. There both have some
general objective and specific objectives.
1.3.1. General Objective -
To fulfill the partial requirement of BBA program and to gain practical knowledge on the range
of activities, policies associated with electronic banking and customer services provided by the
bank. This report will also give the opportunity to relate our theoretical understanding with the
actual scenario in the light of banking services and state our findings & recommendation.
1.3.2. Specific Objectives -
✔ To know the details of ICB Islamic Bank Ltd.
✔ To know the performance of “General Banking Activities of ICB Islamic Bank Ltd.
1.4. SCOPE OF STUDY
I was assigned the topic on “General Banking Activities of ICB Islamic Bank Ltd.-Sylhet
Branch” by my academic supervisor, Md. Afsarul Islam Senior Lecturer of Metropolitan
University. I have collected my required information from the ICB Islamic Bank Ltd. Sylhet. In
this report, it has been tried to cover an overview of ICB’s objectives, functions, management,
business policy and other associated things related to the banking activity. Moreover, some
possible recommendations have been given to widening the performance of ICB Islamic Bank
Ltd. 1.5 SIGNIFICANCE OF THE REPORT
Internship report is an important part requirement of BBA program of Metropolitan University.

As the parties, education institution and organization sustainability benefit from such program.
Recognizing the importance of practical experience, Metropolitan University has introduced a
three months practical exposure as a part of the curriculum of BBA program. Internship program
is the significant idea of learning, which gives us clear view of corporate operation. And it may
also give us the real corporate atmosphere for work before we get introduce to the real job.
1.6. LIMITATIONS OF THE STUDY

Though I have given utmost effort to prepare this paper but there is some limitation of the study
that I cannot ignore. The main limitations are as follows:-
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❖ Time Constraint: The duration of internship program was not enough to cover all aspect of
banking. Due to time limitation many of the aspects could not be discussed in the present
report.
❖ Business Secrecy: The main constrain of the study was insufficiency of information which
was required for my report. Some time employees of the bank cannot provide various
information due to security and other corporate obligations
❖ Information: Since the bank personnel were so much busy with their own work, they could
not provide enough time for making concept clear in a particular area.
❖ Different Circular: For being the largest commercial bank of Bangladesh the functions and
activities of ICB Islamic Bank are too vast, so they change their strategy day by day. As a
result I can’t collect update information and strategy.
❖ Lack of knowledge: Due to Lack of knowledge, experience and expertise in banking field it
becomes hard to understand each and everything during practical program.
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Chapter Two
OVERVIEW OF BANKING INDUSTRY
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2.1 DEFINITION OF BANK:
The Jews in Jerusalem introduced a kind of banking in the form of money lending before the
birth of Christ. The word ‘Bank’ was probably derived from the word ‘bench’ as during ancient
time Jews used to do money -lending business sitting on long benches. First modern banking was
introduced in 1668 in Stockholm as ‘Savings Pis Bank’ which opened up a new era of banking
activities throughout the European Mainland.
In the South Asian region, early banking system was introduced by the Afghan traders popularly
known as Kabuliwallas. Muslim businessmen from Kabul, Afghanistan came to India and started
money lending business in exchange of interest sometime in 1312 A.D. They were known as
‘Kabuliwallas
Banks have influenced economies and politics for centuries. Historically, the primary purpose of
a bank was to provide loans to trading companies. Banks provided funds to allow businesses to
purchase inventory, and collected those funds back with interest when the goods were sold. For
centuries, the banking industry only dealt with businesses, not consumers. Banking services have
expanded to include services directed at individuals, and risk in these much smaller transactions
is pooled.
The name bank derives from the Italian word banco “desk/bench”, used during the Renaissance
by Florentines bankers, who used to make their transactions above a desk covered by a green
tablecloth. However, there are traces of banking activity even in ancient times. In fact, the word
traces its origins back to the Ancient Roman Empire, where moneylenders would set up their
stalls in the middle of enclosed courtyards called macella o n a long bench called a bancu, from
which the words banco a nd bank are derived. As a moneychanger, the merchant at the bancu did
not so much invest money as merely convert the foreign currency into the only legal tender in
Rome— that of the Imperial Mint.
2.2 HISTORY OF BANKING

The history of banking began with the first prototype banks were the merchants of the world,
who made grain loans to farmers and traders who carried goods between cities. This was around
2000 BC in Assyria and Sumerian. Later, in ancient Greece and during the Roman Empire,
lenders based in temples made loans, while accepting deposits and performing the change of
money. Archaeology from this period in ancient China and India also shows evidence of money
lending activity.
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The development of banking spread from northern Italy throughout the Holy Roman Empire, and
in the 15th and 16th century to northern Europe. This was followed by a number of important
innovations that took place in Amsterdam during the Dutch Republic in the 17th century, and in
London since the 18th century. During the 20th century, developments in telecommunications
and computing caused major changes to banks' operations and let banks dramatically increase in
size and geographic spread. The financial crisis of 2007–2008 caused many bank failures,
including some of the world's largest banks, and provoked much debate about bank regulation.
● Asia
Banking as an archaic activity (or quasi-banking is thought to have begun at various times, during
a period as early as the latter part of the 4th millennia B.C., to within the 4th to 3rd millennia B.C.
Prior to the reign of Sargon I of Akkad the occurrence of trade was limited to the internal
boundaries of each city-state of Babylon and the temple located at the centre of economic activity
there-in; trade at the time for citizens external to the city was forbidden.
● India
In ancient India there are evidences of loans from the Vedic period (beginning 1750 BC). Later
during the Maurya dynasty (321 to 185 BC), an instrument called adesha was in use, which was
an order on a banker desiring him to pay the money of the note to a third person, which
corresponds to the definition of a bill of exchange as we understand it today. During the
Buddhist period, there was considerable use of these instruments. Merchants in large towns gave
letters of credit to one another.
● Egypt
In Egypt from early times, grain having an intrinsic value as food functioned, in addition to
precious metals, as money. The regional granaries were used to store and loan the grain of
communities, functions similar to banking services although not the same. Under the dynastic
rule of the Ptolemies, the numerous scattered government granaries were transformed into a
network of grain banks, centralized in Alexandria where the main accounts from all the state
granary banks were recorded. This centralized administration was the first known governmental
bank, functioning as a trade credit system that transferred payments between accounts without
passing money.
● Greece
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The city-states of Greece after the Persian Wars produced a government and culture sufficiently
organized for the birth of a private citizenship and therefore an embryonic capitalist society,
allowing for the separation of wealth from exclusive state ownership to the possibility of
ownership by the individual.
According to one source trapezoids were the first to trade using money, during the 5th century
B.C, as opposed to earlier trade which occurred using forms of pre-money. ● Rome
Roman banking activities were an economic situation which had a crucial presence within
temples, for instance the minting of coins occurred within temples, most importantly the Juno
Moneta temple, though during the time of the Empire, public deposits gradually ceased to be held
in temples, and instead were held in private depositories. Still, the Roman Empire inherited the
from Greece (Parker).
During 352 B.C. a rudimentary public bank was formed, with the passing of consul directive to
form a commission of to deal with debt in the impoverished lower classes. Another source shows
banking practices during 325 BC when, on account of being in debt, the Plebeians were required
to borrow money, so newly appointed were commissioned to provide services to those who had
security to provide, in exchange for money from the public treasury. Another source has the
shops of banking of Ancient Rome firstly opening in the public forums during the period 318 to
310 BC. In early Ancient Rome deposit bankers were known as and at a later time. The
banking-houses were known as Money-lenders would set up their stalls in the middle of enclosed
courtyards called on a long bench called a bancu, from which the words banco and bank a re
derived. As a moneychanger, the merchant at the bancu d id not so much invest money as merely
convert the foreign currency into the only legal tender in Rome – that of the Imperial Mint.
Operations of banking within Roman society were known as. Statutes (AD 125/126) of the
Empire described show rental monies to be collected from persons using land belonging to a
temple and given to the temple treasurer, as decreed by Mettius Modestus governor of Lycia and
Pamphylia. A law, obliged a bank to pay its clients debts under guarantee.
Cassius Dio advocated the establishment of a state bank, funded by the sale of all the properties
owned at the time by the state
In the 4th century monopolies existed in Byzantium and in the city of Olbia in Sardinia he Roman
Empire at some time formalized the administrative aspect of banking and instituted greater
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regulation of financial institutions and financial practices. Charging interest on loans and paying
interest on deposits became more highly developed and competitive. The development of Roman
banks was limited, however, by the Roman preference for cash transactions. During the reign of
the Roman emperor Gallienus (AD 260–268), there was a temporary breakdown of the Roman
banking system after the banks rejected the flakes of copper produced by his mints. With the
ascent of Christianity, banking became subject to additional restrictions, as the charging of
interest was seen as immoral. After the fall of Rome, banking temporarily ended in Europe and
was not revived until the time of the crusades.
● The Modern Banking
The Louisiana Purchase of 1803 was handled by Francis Baring and Company of London. The
first bank to begin the permanent issue of banknotes was the Bank of England in 1695. Initially
hand-written and issued on deposit or as a loan, they promised to pay the bearer the value of the
note on demand. By 1745, standardized printed notes ranging from £20 to £1,000 were being
printed. Fully printed notes that didn't require the name of the payee and the cashier's signature
first appeared in 1855.
In the 18th century, services offered by banks increased. Clearing facilities, security investments,
cheques and overdraft protections were introduced. Cheques were invented in the 1600s in
England and banks settled payments by direct courier to the issuing bank. Around 1770, they
began meeting in a central location, and by the 1800s a dedicated space was established, known
as a bankers' clearing house. The London clearing house used a method where each bank paid
cash to and then was paid cash by an inspector at the end of each day. The first overdraft facility
was set up in 1728 by the Royal Bank of Scotland.
The Industrial Revolution and growing international trade increased the number of banks,
especially in London. At the same time, new types of financial activities broadened the scope of
banking far beyond its origins. The merchant-banking families dealt in everything from
underwriting bonds to originating foreign loans. These new "merchant banks" facilitated trade
growth, profiting from England's emerging dominance in seaborne shipping. Two immigrant
families, Rothschild and Baring, established merchant banking firms in London in the late 18th
century and came to dominate world banking in the next century.
A great impetus to country banking came in 1797 when, with England threatened by war, the
Bank of England suspended cash payments. A handful of Frenchmen landed in Pembrokeshire,
causing
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a panic. Shortly after this incident, Parliament authorized the Bank of England and country
bankers to issue notes of low denomination.
2.3 DEFINITION OF BANKING
Banking is the process through which an institution, most often owned by the government,
Provides financial services. They include collecting deposits, landing money and issuing debit
and credit cards. Banking is the process of performing the activities of a Bank. 2.4
DEFINITION OF BANKER
A banker is responsible for establishing and maintaining positive customer relationships,
planning and delivering effective sales strategies and monitoring the progress of new and
existing financial products. Bankers may work as managers in high street branches providing
operational support on a day-to day basis, or in more specialized posts in corporate or
commercial departments at area, regional or head offices.
2.5 DEFINITION OF ISLAMIC BANK

According to Organization of Islamic Conference (OIC), “Islamic bank is a financial institution
whose statutes, rules and procedures expressly state its commitment to the principles of Islamic
Shariah and to the banning of the receipt and payment of interest on any of its operations.”
According to Dr. Ziauddin Ahmed “Islamic Bank is essentially a normative concept and could be
defined as conduct of banking in consonance with the ethos of the value system of Islam. "An
Islamic bank is a financial institution whose status, rules and procedures expressly state its
commitment to the principle of Islamic Shariah and to the banning of the receipt and payment of
interest on any of its operations" (Ali & Sarkar 1995, pp.20-25)
2.6 LAW OF BANKING

Banking law is based on a contractual analysis of the relationship between the bank and the
customer. The definition of bank is given above, and the definition of customer is any person for
whom the bank agrees to conduct an account.
The law implies rights and obligations into this relationship as follows:
✔ The bank account balance is the financial position between the bank and the customer,
when the account is in credit, the bank owes the balance to the customer, when the
account is overdrawn, and the customer owes the balance to the bank.
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✔ The bank engages to pay the customer’s cheques up to the amount standing to the credit of
the customer’s account, plus any agreed overdraft limit.
✔ The bank may not pay from the customer’s account without a mandate from the customer,
e.g. a cheque drawn by the customer.
✔ The bank engages to promptly collect the cheques deposited to the customer’s account as
the customer’s agent, and to credit the proceeds to the customer’s account. ✔ Right to
combine the customer’s accounts, since each account is just an aspect of the same credit
relationship.
✔ The bank has a lien on cheques deposited to the customer’s account, to the extent that the
customer is indebted to the bank.
✔ The bank must not disclose the details of the transactions going through the customer’s
account unless the customer consents, there is duty to disclose, the bank’s interests require
it, or under compulsion of law.
2.7 FEATURES OF A BANK

The features of a bank are given below:-
Bank is a financial institution which deals with other people’s money i.e. money given by
depositors.
A bank accepts money from the people in the form of deposits which are usually repayable on
demand or after the expiry of a fixed period.
A bank provides easy payment and withdrawal facility to its customers in the form of cheques
and drafts.
A bank works as an agent for its customer and provides utility services.
Banks make loans to consumers, businesses and organizations. Loans represent fund that are
extended by the bank to the creditor who agrees to pay the fund back, with interest, over a
specified time period.
Banks are operated with the objective of making a profit. Their fee structure and interest rate is
designed with the intention of making money for owners and shareholders. A bank acts as a
connecting link between borrowers and lenders of money. Bank collects money from those who
have surplus money and give to those who are in need of money. 2.8 FUNCTIONS OF A
BANK
The function of Bank can be categorized into the following categories:-
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Figure: function of Bank
2.9 HISTORY OF BANKING INDUSTRY IN BANGLADESH After

independence the government of People ’s Republic of Bangladesh was formally to cover The
charge of administration of the territory now constitute Bangladesh. In an attempt to rehabilitate
the war-devastated banking of Bangladesh, the government promulgated a law called Bangladesh
Bank (temporary order, 1971 (Acting president’s order No.2 of 1971). By This order, the state
bank of Pakistan was declared to be deemed as offices, branches and Assets of Bangladesh Bank.
On that date there existed 14 scheduled banks with about 3042 branches all over the country.
After the independence, banking industry in Bangladesh started its journey with 6 nationalized
commercialized Banks, 2 State owned specialized Banks and 3 Foreign Banks. In the 1980s
Banking Industry achieved significant expansion with the entrance of Private Banks. Now, Banks
in Bangladesh are primarily of two types:
Scheduled Banks
Non- Scheduled Banks
Scheduled Banks:
The banks which get license to operate under Bank Company Act, 1991 (Amended in 2003) are
Termed as Scheduled Banks. Banks which are included in the list of central Banks are termed as
Scheduled Banks.
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Non- Scheduled Banks:
The banks which are established for special and definite objective and operate under the acts that
are enacted for meeting up those objectives, are termed as Non-scheduled Banks. These Banks
cannot perform all functions of scheduled Banks
2.10 HISTORY OF ISLAMI BANK IN BANGLADESH

Establishment of Islamic Development Bank (IDB) by the OIC member states in the year 1975
has been proved to be a breakthrough in the expansion of Islamic Shariah based finance and
specially banking throughout the world. As a founder member of IDB, the Government of
Bangladesh also had the commitment to establish Islamic banks which was reflected in different
steps taken by the governments of the country. The OIC members consented to the proposals to
introduce Islamic economy and banking in their respective countries held in the foreign ministers’
conferences in 1978 and 1980 in Dakar and Islamabad respectively. In the year 1981, OIC in its
3rd summit held in Makkah approved the proposition submitted by Bangladesh to introduce
separate banking system following Islamic ideology. As per decision, the GOB sent
representatives to the Middle Eastern countries to learn the existing banking systems in those
countries.
In the private sector, the Islamic Economics Research Bureau (IERB) was the first organization
that took active initiative in this regard. They arranged a national seminar on Islamic Economics
and Banking in the year 1979 and inspired by the discussion and the papers presented in the
seminars, some local bankers formed ‘Islami Bank Working Group’. The IERB again arranged an
international seminar in 1980. After the seminar, Dhaka based ‘Muslim Businessman Society’
(later renamed as ‘Industrialist and Businessmen Association’) under the leadership of renowned
industrialist Abdur Razzaque Lasker, took initiative to establish an Islamic bank and applied to
the government for permission. At this stage, the GOB provided necessary permission in the year
1983 and at last ‘Islami Bank Bangladesh’ was registered under Company Act in which 19
Bangladeshi national, 4 Bangladeshi institutions and 11 banks, financial institutions and
government bodies of the Middle East and Europe including IDB and two eminent personalities
of the Kingdom of Saudi Arabia joined hands to make the dream a reality.
2.11 BANKS OF BANGLADESH AT A GLANCE:

1. Central Bank
2. State-owned commercial Banks
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3. Private commercial Banks
4. Specialized Banks
a) schedule specialized Banks
b) Non- Scheduled Specialized Banks
c) Micro-Finance Organizations ( Semi formal)
d) Co-Operative Banks
5. Non-Banking Financial institutions
a) merchant Banking companies
b) .housing development finance companies
c) Stock Exchange
d) Insurance Companies
6. Other banks:
a. Retail Bank
b. Unit Bank
c. Branch Bank
d. chain Banking
e. group Banking
2.11.1. Central Bank:
The central bank is the organ of the government that performs the major financial operations of
the government, monitors and controls the functions of commercial Bank for the economic
Development of a country. Every country of the world has a central bank. According to the
pursuant to Bangladesh Bank Order-1972, the Government of Bangladesh reorganized the Dhaka
branch of the State Bank of Pakistan as the central bank of the country, and named it Bangladesh
Bank with respective effect from 16 December 1971.
2.11.2. State-owned Commercial Banks:
State –owned Banks are functioning as nationalist. Among the state owned Banks, six are
Commercial and two are specialized. Here is the list:
State-owned Commercial Banks:
1. Sonali Bank Limited
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2. Janata Bank Limited
3. Agrani Bank Limited
4. Rupali Bank Limited
5. Basic Bank Limited
6. Bangladesh Development Bank Limited
2.11.3. Private commercial Banks:
1. AB Bank Limited
2. Bangladesh Commerce Bank Limited
3. Bank Asia Limited
4. BRAC Bank Limited
5. City Bank Limited
6. Dhaka Bank Limited
7. Dutch Bangla Bank Limited
8. Eastern Bank Limited
9. IFIC Bank Limited
10. Islami Bank Bangladesh Limited
11.meghna Bank Limited
12. Mercantile Bank Limited
13. Midland Bank Limited
14. Modhumoti Bank Limited
15. Mutual Trust Bank Limited
16. National Bank limited
17. NCC Bank Limited
18. NRB Bank Limited
19. NRB Commercial Bank Limited
20. NRB Global Bank Limited
21. One Bank Limited

22. Premier Bank Limited
23. Prime Bank Limited
24. Pubali Bank Limited
25. South Bangla Agriculture and commerce Bank Limited
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26. Southeast Bank Limited
27. Standard Bank Limited
28. The Farmers Bank Limited
29. Trust Bank Bangladesh Limited
30. United Commercial Bank Limited
31. Uttara Bank Limited
Islamic Commercial Banks in Bangladesh:
There are eight Islamic Commercial Banks currently operating in Bangladesh. These
are: 1. Islami Bank Bangladesh Limited
2. Al- Arafah Islami Bank Limited
3. Export import Bank of Bangladesh Limited
4. Social Islami Bank limited
5. Shahjalal Islami Bank Limited
6. First security islami Bank Limited
7. Union Bank Limited
8. ICB Islamic Bank Limited
Foreign Commercial Banks:
There are nine foreign commercial Banks currently operating in Bangladesh. These
are: 1. Bank AL-Falah Limited
2. City Bank NA
3. commercial Bank of Ceylon
4. Habib Bank Limited
5. HSBC (The Hong Kong and Shanghai Banking Corporation Ltd)
6. National Bank of Pakistan
7. Standard Charted bank
8. State Bank of India
9. Woori Bank
2.12 NON-BANKING FINANCIAL INSTITUTIONS:
1. Agrani SME Financing Company Limited
2. Bangladesh Finance and Investment Company Limited
3. Bangladesh Industrial Finance Company Limited
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4. Bangladesh Infrastructure Finance Fund Limited
5. Bay Leasing and Investment Limited
6. CAPM Venture Capital and Finance Limited
7. Delta Brac Housing Finance Corporation Limited
8. Far-east Finance & investment Limited
9. FAS finance & Investment Limited
10. First Finance Limited
11. GSP Finance Company (Bangladesh) Limited
12. Hajj Finance Company Limited
13. IDLC Finance Limited
14. Industrial and Infrastructure Development Finance Company Limited
15. Industrial Promotion and development Company of Bangladesh
Limited 17. International Leasing and Financial Services Limited
18. Islamic Finance and investment Limited
19. Lanka Bangla Finance Limited
20. Meridian Finance and Investment Limited
21. National Finance Limited
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Chapter Three
OVERVIEW OF ICB ISLAMIC BANK
LIMITED
3.1. HISTORY
Government states the rule and regulation that should be followed by a private bank. The
initiative of government has paved the way to create new and dynamic financial institutions. One
such institution in our banking sector is “ICB Islamic Bank Limited”. The bank has been
incorporated
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in April, 1987 as a public limited company under the Companies Act, 1913 to undertake &
carryout all kinds of banking, financial & business activities, transactions & operations in strict
compliance with the principles of Islamic law (Shariah) relating to business activities in
particular avoiding usury in credit & sales transactions & any practice which amounts to usury.
Certificate for commencement of business has been issued to the bank on April, 30, 1987.
The Bank has been authorized by the Bangladesh Bank to carry on the banking business in
Bangladesh with effect from May 4, 1987. However; actual banking operations commenced on
May 20, 1987 & emerged as 2nd Islamic Bank in the country under the name “Al Baraka Bank
Bangladesh Limited”. Initially bank has started its operation in the name of Al Baraka Bank
Bangladesh Limited but on 31st December, 2002 it was renamed as “The Oriental Bank Limited”
by the Register of joint Stock Companies.
The Oriental Bank Limited had been going through financial crisis for years and the bank
gradually reached the verge of collapse at beginning of 2006. It became a serious issue by
following a report of Daily Prothom Alo which brought the issue to all concern. Following the
report of Prothom Alo and few other dailies, there were serious pressure of withdrawal on the
bank which was about to take a ruinous form. Moreover, unfavorable news regarding the
Oriental Bank Limited started influencing clients of other private banks to withdraw their money.
Observing this situation, for salvaging oriental and other private banks as well, Bangladesh Bank
was considering number of options and finally opted to takeover the responsibility of the Bank.
As such, Bangladesh Bank on 19.06.2006 removed the Managing Director, dissolved the Board
of Directors and appoints an Administrator. Bangladesh Bank undertook the control of the bank
on June 19, 2006 as bank was in extreme liquidity crisis due to many setbacks and irregularities
in preceding years. Bangladesh Bank also confiscated shares of the owners later on. The Bank
was listed at Dhaka Stock Exchange limited and Chittagong Stock Exchange Limited.
On 4th March 2008, The Oriental Bank was took over by ICB Banking group.. ICB Islamic Bank
Ltd. operates in Bangladesh with a total of 32 branches across the country based on Islamic
Shariah. Its authorized Capital is Tk.10.00 billion (USD 0.14 billion approx.) and Paid-up Capital
is Tk.7.00 billion (USD 0.1 billion approx.). The present Chairman of our Bank Dr. Hadenan A
Jalil was the former Auditor General of Malaysia. The Chief Executive (Managing Director) Mr.
Abdul Latif Bin Yahaya was the former High Official of the Central Bank of Malaysia. The ICB
Banking Group is a member of London Stock Exchange. Commensurate with the global policy of
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Page 27 o
ICB Banking Group, ICB Islamic Bank is committed to provide banking services of international
standard to its clients in all areas of banking to cater customer need. ICB dedicated substantial
investments to ensure that best people are employed; the operating systems are technologically
superior; proven systems and methods are implemented consistently with best practices; strong
internal controls are entrenched; and proactive risk management is implemented and respected.
The principal place of business is the registered office at T.K. Bhaban ( 4th,14th, 15th, 16th
Floor), 13, Kawran Bazar, Dhaka-1215, Bangladesh. ICB Islamic Bank Ltd. Currently the bank
has 32(thirty two) branches; 12 in Dhaka, 4 in Chittagong, 4 in Sylhet, 3 in Jessore, 1 each in the
district of Khulna, Hobigonj, Barisal, Rajshahi, Feni, Narsingdi, Naogaon, and Narayangonj.
The bank provides all kinds of commercial banking services to customers observing the
provisions of the Bank Companies Act.1991, Bangladesh Bank’s directives & the principles of
Islamic Shariah.
3.2 MISSION
To constantly meet and exceed our customers’ expectations by challenging status quo and
crafting innovative Shariah compliant Islamic products and services to cater the diverse
requirements of our customers by constantly framing and refreshing transparent policies and
processes to keep our customers delighted. To ensure sustainable values:
● For our people by constantly creating difficult yet achievable challenges and providing
means of achieving them in the form of appropriate coaching, guiding and training and
fostering a competitive but meritocratic culture.
● For our partners by guaranteeing a soothing coexistence.
● For our shareholders by delivering them optimum returns on their investments. ● For the
society we operate in by making meaningful impacts on the well being of the
underprivileged of the society.
3.3 VISION
ICB Islamic Bank is committed towards creating and maximizing sustainable values for all its
customers, employees, partners and shareholders and especially for the society it operates in by
delivering excellence in its offerings in all areas of banking and financial services complying
Islamic Shariah.
3.4 NATURE OF BUSINESS

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All kinds of commercial banking services are provided by the bank to the customers observing
the provisions of the Bank Company Act 1991, Bangladesh Bank's directives and the principles
of Islamic Shariah.
3.5. SIGNIFICANT ACCOUNTING POLICES BASIS OF

ACCOUNTING
The accompanying financial statements, comprising Balance Sheet, Profit and Loss
Account and Notes thereto have been prepared according to Banking Companies Act,
1991 and Bangladesh Bank circulars applicable to accounts, on a going concern basis,
under historical cost convention and are based on generally accepted accounting
principles.
3.6 CONSOLIDATION
A separate set of records for consolidating the Statement of Affairs and Income and Expenditure
Statements of the branches are maintained at the Head Office of the bank in Dhaka from which
these financial statements are drawn up. Branch Managers of respective bank branches have
certified the statement of affairs for the year ended December 31, 2016.
3.7 BALANCE WITH OTHER BANKS AND EXCHANGE GAINS OR
LOSSES
Balances with foreign banks at year-end are translated at the average of telegraphic transfer of
buying and selling rates. Excess/shortage of translated figures over book figures at year-end is
transferred to Profit and Loss Account.
3.8 INVESTMENTS
Investment are stated at amount as reduced by balance of Profit suspense account and provision
for bad and doubtful debts; Profit is not charged on bad and doubtful investments from the date of
filing money suits against the borrowers; Income which were charged on Investment classified by
Bangladesh Bank Inspection Team and by the Bank management as sub-standard, doubtful and
bad were kept in profit suspense account as per Bangladesh Bank BCD Circulars and such
income is not accounted for as profit until realized from borrowers
3.9. BOARD OF DIRECTORS
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Chairman
Mohd. Nasir Bin Ali.
Independent Director
Mr. Md. Fariduddin Ahmed.
Director
Ms.Hashimah Binti Ismail.
Director
Ms. Lee Ooi Kim.
Director
Mr. Tee Kim Chan
3.10 MANAGEMENT COMMITTEE

Members
Mr. Muhammad Shafiq Bin Abdullah, MD & CEO
Mr. Sanjeev Anand, COO & CFO
Mr. Moyeenuddin Ahmed, SVP & Head of Operations
3.11 SYLHET DIVISION
Name of Branch with Address Managers Cell & Phone
Mushfique
SYLHET BRANCH BEANIBAZAR BRANCH 0821-713469,0821-
(Regional Office) National Market, 1st floor, 714197,0821-
Collectorate Mosque Building Main Road, P.O & P.S.
710264
(1st floor), Court Point, Zinda Beanibazar-31700, Sylhet
01811-408273
Bazar Road, Sylhet 3100, Abu Abid Mohammad
Bangladesh Rumman 08224-56204
01811-408276
BISWANATH BRANCH
Plot no.9545,Thana Md Sadequl Islam 08223-56152
Road,Biswanath, Sylhet 01811-408275
Kazi Monjur Mohammad
Road,Habiganj
Md. Aynuddin 0831-61557
HABIGANJ BRANCH 01811408277
London Tower (1st Floor),Kali Bari
BRANCH 10,Court Sheikh Mohi Uddin Ahmed
Road,Chowmohana,Moulavi 0861-53153 01811408274
MOULAVIBAZAR bazar
3.12. PRODUCT & SERVICES OF ICB ISLAMIC BANK LTD
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Consumer Products
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3.13 ELECTRONIC BANKING AT ICB ISLAMIC BANK LTD.

Different types of Electronic banking (E-banking) are provided by ICB Islamic Bank Ltd. Sylhet
Branch to its customers. The following are the details of E-banking that is provided by ICB
Islamic Bank Ltd.:
● SMS Banking
● Online & Internet Banking
● ATM card
● Agent Banking
● Utilities Bill Collection
● Locker service
● Remittance Partners
3.13.1 SMS Banking
ICB Islamic Bank Ltd. Sylhet Branch offers SMS Banking services to ensure instant access to
one’s account information at any time. Any mobile phone user having account with ICB Islamic
Bank Ltd. can get the services through the mobile phone. By using SMS banking our customers
can avail the services like:
3.13.2 Online and Internet Banking
Online banking system is an awesome method to decrease paper utilization. All the 33 branches
of ICB Islamic Bank Ltd. Fund Transfer to Other bank’s Accounts through BEFTN have been
made available through Online Banking for the Customers. ICB Islamic Bank Ltd. has offered
24/7 accessible Internet Banking service. By using real-time internet banking our customers can
avail the services like:
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3.13.3 Internet Banking
Internet Banking allows customer to view Account balance inquiry, Statement generation,
Account Opening, Manage liquidity, Fund transfer- BEFTN, RTGS, Utility bill Payment,
Cheque book requisition and Stop cheque payment between their accounts in a safe and secure
environment. 3.13.4 ATM information
ICB Islamic Bank Ltd has taken the initiative to expand its arena in electronic payment system.
The customers of ICB Islamic Bank are now connected to more than 950 ATMs countrywide.
With ICB easy cash ATM Card, customers are connected to the following networks: ● ICBIB
ATMs
● Q-Cash Consortium Members Banks ATM
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Chapter-Four
GENERAL BANKING ACTIVITIES OF
ICB ISLAMIC BANK LTD.
4.1 GENERAL BANKING (WORK RELATED ACTIVITIES)
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The division of general banking plays the most significant role in all banks. It is mainly a liability
side. General Banking division of ICB Islamic Bank Ltd can be functioned in the following way:
4.2 VARIOUS TYPES OF DEPOSIT ACCOUNT
ICB Islamic Bank offers following types of deposit account:
Particulars Particulars
SL. NO
01 Al Wadiah Current Deposit(CD) MudarabaLakhpoti Deposit Scheme (LDS)
02 Mudaraba Savings Deposit (MSD) Mudaraba Millionaire Deposit Scheme (MDS)
03 Mudaraba Term Deposit (MTDR) MudarabaKotipoti Deposit Scheme

(MKDS)
05 Mudaraba Short Notice Deposit

04 Monthly Installment Based Term
(SND)
Deposit (ITD)
Al-Arafah Monthly Hajj Deposit (MHD) Pension Deposit Scheme (PDS)
06 Mudaraba Double Deposit (MDD) Mudaraba Double Benefit Deposit Scheme

(MDBDS)
And Continuing- ICB Islamic Termed Hajj Deposit (THD), Monthly Installment Based Marriage
Savings Investment Scheme (MIS), ICB Islamic Savings Bond (ASB), Foreign Currency Deposit
(FCD), Cash Waqf Deposit Scheme (CWD), Mudaraba (Special) Pension Deposit Scheme
(MSPDS).
4.2.1 Al-Wadia Current Deposit
No profit is payable in current accounts. Current account has advantages over savings account.
Advantages are - no such withdrawal limit and overdraft facility. The minimum account opening
balance is Tk.2000. The minimum balance must be maintained in the account. The account
maintaining fee is Tk.250 and charged twice a year. If the balance falls below Tk.2000, bank will
charge minimum balance charge Tk.250 half-yearly.
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4.2.2 Mudaraba Saving Deposit (MSD)
In savings deposit account, profit is payable to the customer. The profit for savings account is 4
percent. Profit is calculated on a monthly basis on the lowest balance in the account during the
month. Customer can withdraw twice in a week and maximum limit per transaction is BDT.5 Lac
and withdrawal beyond this limit requires 7(seven) days prior notice. If the total withdrawal
without notice is allowed twice in a week up to 25% of the balance in the account subject to
maximum limit of BDT.5,00,000 withdrawal beyond the maximum limit will require 7(seven)
days prior notice, failing of which profit will not be allowed for the month in which the
withdrawal occurs. Profit rate may be subject to change without notice to customer. Profit will be
credited to customers account on half-yearly basis.
The minimum account opening balance is Tk.500. The minimum balance must be maintained in
the account. The amount of minimum initial deposit is the minimum balance for maintenance.
The account maintaining fee is Tk.500 and charged twice a year. If the balance falls below
Tk.500, bank will charge minimum balance charge Tk.250 half-yearly. The bank reserves the
right to realize an incidental charge and or/ to close the account without prior notice to the
customer(s), if he/she/they fail to maintain the minimum balance.
4.2.3 Mudaraba Term Deposit Receipt (MTDR)
It's a certain period deposited system, which is not repayable before the maturity date of a fixed
period. ICB Islamic Bank offers higher rates of profit on such deposits. Usually customers are
allowed to open this account for a certain period and the rate of profit in accordance with the
terms of the deposit. The features of MTDR as follows:
Minimum balance: TK 10,000.

Month 1 3 6 12 24 36 6 years Profit 12.00 12.50 12.50 12.50 12.00 12.00 Double
4.2.4 Installment Term Deposit (ITD)

It's a sure investment for a steady return. It can be opened for 2, 3, 5, 8, 10, or 12 years for
Tk.200, TK.300, TK.500, Tk1000, Tk.1500 and Tk2000, Tk 3000, Tk.4000, TK.5000. The
savings amount is to be deposited any day of the month. If the depositor has a separate account
in the bank for
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which a standing instruction can be given to transfer the monthly deposit in the scheme's account.
After 3 years of savings in this schemed the depositor is eligible for a loan up to 80% of his
deposited amount.
4.2.5 Short Notice Deposit (SND)
Short Notice Deposit has following attributes:
▪ 3.5% profit rate against SND.
▪ No restriction over withdrawal of money
▪ 5000/- is the minimum balance.
4.2.6 Mudaraba Double Deposit (MDD)
Savings works as the very foundation of development. Savings is the prime source of business
investment in a country. So it helps to build up capital. To create more awareness and motivate
people to save, ICB Islamic Bank offers Mudaraba Double Deposit.
Here people put their money for double return after 6 years.
4.2.7 Mudaraba Lakhopoti / Millionaire/Kotipoti Schemes Conditions of The
Schemes 1. By filling up a form an account is opened.
2. A non-transferable deposit receipt will provide to the customer after opening the account.
3. If the deposit is withdrawn before a 5-year term, then saving interest rate will be applicable
and paid to the depositor. However, no in profit paid if the deposit is withdrawn within 1
year of opening the account and Monthly Income paid to the customer will be adjusted from
the principal amount.
4. This scheme will be credited to the loan account until liquidation of the loan amount
inclusive of profit. A depositor can avail loan up to 80% of the deposit amount under this
scheme.
a) Mudaraba Lakhpoti Scheme
For Mudaraba Lakhpoti Scheme 3,5,8,10,12 year’s monthly installments are 2,440/- 1350/- 740/-
540/- 420/-/- respectively and will get 1lak.
b) Mudaraba Millionaire Scheme
For Mudaraba milliner Scheme 3,4,5,6,7,10,12,15,20 year’s monthly installments are 23,200/-
16,400/- 12,700/- 10,020/- 7,820/- 4,500/- 3,330/- 2,120/- 1,175/- respectively and will get
10million.
c) Mudaraba Kotipoti Scheme
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One can open for 3,4,5,6,7,10,12,15,18,20 years and have to pay (Monthly installment)
2,44,000/- 1,75,300/- 1,35,000/- 108,000/- 88,000/- 54,000/- 41,000/- 28,600/-
20,700/- 16,900/- respectively and will get 1crore.
4.3 PROFIT RATES OF ICB ISLAMIC ON DIFFERENT DEPOSITS Sl.

No. Account Head/Deposit Scheme Profit Rate in % 01 Al-Wadiah Current Deposit
Nill 02 Mudaraba Saving Deposit 4.00%
03 Mudaraba Short Notice Deposit (SND) 4.00% 04 Mudaraba Investment Term
Depositn(ITD) 10.00% 05 Mudaraba PTD 10.00% 06 Monthly Hajj Deposit 10.00%
07 MTDR 36 Months 10.00% 08 MTDR 24 Months 10.00% 09 MTDR 12 Months
10.00% 10 MTDR 6 Months 7.5%
11 MTDR 3 Months 6.5% 12 MTDR 1 Month 6.00% 13 Mudaraba Lakhopoti 10.00%
14 Mudaraba Millionaire 10.00% 15 Mudaraba Katipothi 10.00% 16 Double Benefit
Deposit Scheme 10.00% 17 Special Savings (Pension) Scheme 10.00% 18 Marriage
Saving Investment Scheme (MSIS) 8.25%
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4.4 GENERAL PROCEDURE OF ACCOUNT OPENING
Step1: Bank provides account opening form to the prospective customer or applicant.
Step 2: Applicant fills up the form.
Step 3: Application submits the form dully signed by an introducer and along with 2 pasport size
photo signed by the introducer.
Step 4: The authorized officer scrutinizes the application form.
Step 5: If they are satisfied, they will open the account.
Step 6: They issue deposit slip and deposit must be made it.
Step 7: After deposition one checkbook is issued Signature card to verify the signature of the
client.
Step 8: Bank preserves the specimen.
Step 9: Account is opened.
4.5 GENERAL PROCEDURE OF ACCOUNT CLOSING
Account closing is also done by account opening section. The customer may close his/her/their
account(s) at any time giving notice to the bank. Similarly, the bank on genuine ground may close
customer(s) account giving reasonable notice for the action or without any notice if the conduct
of the account is not satisfactory to the bank or any reason(s) whatsoever. In either case, bank
will realize a closing charge from the customer’s account. The usual closing charge is Tk. 300 +
15% VAT. But, the closing charge of account within three months of opening is Tk.500 + 15%
VAT.
To close an account:
▪ Account holder requires applying in a specific form with full signature. ▪
He/she/they must surrender the unused leaves/cheque book provided by the bank. ▪
Verification of signature and approval by operation head.
▪ Close the account.
4.6 CLEARING SECTION
The main function of clearing section is to operate with safety and security of financial
transaction of financial instrument like DD, PO, check etc. on behalf of the customers through
Bangladesh Bank Clearing House, Outside Bank Clearing (OBC), Inter Branch Clearing (IBC).
This section examines in the following way:
▪ Whether the paying bank within the Dhaka city.
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▪ Whether the paying bank outside the Dhaka city. Then these checks can be cleared by
OBC, OBC stands for Outward bill for collection.
▪ Whether the paying is their own branch. These checks can be cleared by IBC, IBC stands
for Inter Brunch Bill for Collection.
4.6.1 Inward Clearing:
When the checks of its customer are received for collection from other banks, the following
should be checked very carefully;
▪ The check must be crossed.
▪ The check should not carry a date older then the receiving date for more than 6 months. ▪
The collecting bank must check whether endorsement is done properly or not. ▪ The amount
both in words and figures in deposit slip should be same and also it should be
in conformity with the amount mentioned in words and figures in the
checks. 4.6.2 Essential elements for Clearing:
There are three essential elements are required for clearing the
Instruments: ▪ Clearing Seal,
▪ Crossing Seal.
▪ Endorsement Seal.
4.7 BANKER’S CHEQUE (BC)
BC is used only to make the payment of different kinds of bills like utilities bill of the
bank. Some special features of BC are as follows:
▪ It should be Crossed Cheque and Account Payee Only.
▪ There is no commission for issuing a pay slip.
▪ Bank is the maker of the pay slip.
▪ A revenue stamp is required in case of payment.
▪ It has two parts; one part belongs to account payee and the other to the bank.
4.8 INTER BRANCH CREDIT ADVICE (IBCA)
It is an advice written by originating branch to the responding branch to credit the general
account of responding branch for the transaction mentioned on it. IBCA is issued to responding
branch to pay. The responding branch makes payment.
4.9 INTER BRANCH DEBIT ADVICE (IBDA)
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It is an advice written by origination branch to the responding branch to debit the general account
of responding branch for the transaction mentioned on it. IBDA issued to collect money from
other branch. The originating branch collects money.
4.10 REMITTANCE SECTION

The word ‘Remittance’ means sending of money from one place to another place through post
and telegraph. Commercial banks expose this facility to its customers by means of receiving
money from one branch of the bank and making an easier arrangement for payment to another
branch within the country.
4.11 PAYMENT ORDER (P.O.)

Payment Order is a process of money transfer from payer to payee within a certain clearing area
through banking channel. It's an order of local payment on behalf of the bank or its constitution.
A customer can purchase different modes of payment Order such as pay order by cash and pay
order by check.
ICB Islamic Bank Ltd charges different amount of commission on the basis of payment order
amount:
Total Amount of PO Commission (Tk.) VAT (Tk.)
1-1,00,000 20 3
1,00,000-5,00,000 30 5
5,00,000-10,00,000 50 8
Above10,00,000 100 15
4.12 DEMAND DRAFT (D.D.) & TELEGRAPHIC TRANSFER (T.T.) DD is a

one kind of bill of exchange. DD is the most frequently used mode of inland remittance. DD is
an unconditional order of the bank from one branch to another branch to pay certain amount of
money to a certain person on demand. It is applicable outside the Sylhet City. The DD generally
issued for party’s safety. If there is a huge amount to bear one place to another, then customer can
do the DD and bear it to his destination instead of cash.
Telegraphic Transfer is the most rapid and convenient but expensive method. There are different
modes of telegraphic transfer such as Fax, Mobile, Telephone Telex, and Telegram.
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If an applicant wants to transfer money quickly to the pay in another city or district he /she may
request the banker to send it by TT.
4.13 CASH SECTION
Cash section is an important part of any branch. Most of the activities are relate to cash section.
The functions of cash section are receipt & payment of cash.
4.14 INVESTMENT (ORGANIZATION WIDE ACTIVITIES) ICB Islamic Bank
is a new generation bank. It is committed to provide high quality financial services/products to
contribute to the growth of G. D. P of the country through stimulating trade & commerce,
accelerating the pace of industrialization. In investment operation of the bank is of paramount
importance as the greatest share of total revenue of the band is generated from it, maximum risk
is centered in it and even the very existence of band depends on prudent management of its
investment portfolio. The failure of a commercial bank is usually associated with the problem in
investment portfolio and is less often the result of reduction in the value of other assets. In view
of the above this investment policy and control guidelines of the bank has been prepared which is
subject to amendment, revision, readjustment and refinement from time to time as may be
warranted by the change of circumstances due to passage of time to suite the requirement of the
bank.
Allah has permitted Bai (Buying and selling i.e. trading) & prohibited Riba. Islamic Banks in all
its transactions follow the verdict of Al-Qur’an and Sunnah and prohibit Riba in all its operations.
The Banks conduct investment portfolio under three mechanism i.e. (1) Bai Mechanism; (2)
Share Mechanism (3) Ijara.
4.15 OTHER RELEVANT ACTIVITIES

I have done others Bank related activities of document typing, electric bill entry, mail, and call to
customers for different reasons. I visited clients’ residence with my supervising officer.
Page 42 of 60
Chapter-Five
MY JOB AS AN INTERN
Page 43 of 60
5.1 MY JOB AS AN INTERN
This report has been done as per the requirement for successful completion of the Internship
program. Exposure to the business world and acquiring practical work experience was the
primary objective of this report. I was attached with ICB Islamic Bank Ltd at its Sylhet Branch
for my internship. Through internship I got the basic idea about the corporate culture and
practices. It was a great experience. 01 February 2020 to 30th April 2020 these three month
journey of my internship with ICB Islamic Bank Ltd was very delightful. I enjoyed a lot. All
the stuffs of the bank are very friendly and helpful. I was very lucky to get chance to experience
in different departments within these three months. Those are described below:
5.1.1 Front Desk:
The first department I worked was front desk. I was there from 01 February 2020 to 23rd February
2020 in charge was Shah Tufayel Ahmed (Senior Officer) is also there to help me to understand
my job. I found Front Desk a little difficult. My job was to attain and help the clients directly. I
had to help clients by providing information, helping to fill up Account opening, DPS opening,
DBDS opening, FDR opening, MBS opening, MMP opening forms etc.
5.1.2 Clearing:
The 2nd department I worked was clearing. 24th February to March 20th I was also appointed in
clearing department. My in charge was S M Mohsinul Haque (MOP), and Md. Al Amin (Officer)
in clearing department cheque from other banks transaction happens. My job was to entry those
transactions in a register and at the end of the day sum up the amount and check with the
automated amount from computer. The amount must be same.
5.1.3 Cash Department:
I was in cash department from 23rd March to 2nd April 2020. My in charge was Farhana Akter
(Senior Cash Officer). There were also some other stuff working in cash is Md. Ruhel Uddin
(Cash
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Officer), and Nehal Ahmed (Executive Officer). My duty in cash was to entry cheque and
deposits slips amount and number in registers and give the serial number to the cheque and
deposit slip according the register entry number. There were two register one is to entry the
cheque number and amount. Another register is for entering deposit slips number. Cheques are
entered in debit register because with cheque bank gives money to customer which is debit and
deposit slips are entered in credit register because with using deposit slip customer deposit
money to bank which is earning for bank and that is why it is credited. At the end of the day I
had to sum up register individually and check them with automated amount get through the
computer. The amount must be some other wise it will be revised thoroughly and correct the
mistake. Another job I did there is sorting the cheque according the prefix of the account
number. I had to also sort out the Demand Payable Slip (DPS) according their type. There are
three types of DPS; 3yrs, 5yrs and 8 yrs. 1 to 10 of every month are considered as DPS hour.
Everyone becomes so busy. I got two days of DPS hour and understand what actually happens.
Those days I had to enter lots of cheques, Deposit slips and sort a huge amount of DPS.I also
entry the IPO Share items. I work this in PC.
5.1.4 Accounts Department:
Accounts Department is under General banking. 3rd April to 21st April I worked in accounts.
Within that period of time my in charge were changed two times because of their transfer. So I
get the chance to work with two in charge. In accounts first I got Shah Tufayel Ahmed (Senior
Officer), he was also my onsite supervisor. S M Mohsinul Haque (Manager of Operations) was
my in charge. My main job in accounts is sorting the voucher. After voucher sorting me had to
attach them with related supplementary. Voucher is actually proved of the transaction. There are
various types of voucher and they are categorized by different number. Which I had to separate
and sort group wise. Supplementary is the automated list of all transactions. Each of the
transaction has related voucher. My job was to attach them according the number and check the
amount of transaction. In voucher and supplementary the amount will be same. Otherwise there
must be some problem which will be identified and revised. Next step is to make a cover page
which is a brown color hard paper. Then prepare it for binding in an organized format. It is
prepared for binding and I did another job was entry the amount date wise in a register.
5.1.5 Foreign Remittance:
The 5th department I worked was Foreign Remittance. 24th to April 04th 2020. I was also appointed
in Remittance department. My in charge was Md. Nehal Ahmed (Executive Officer), and Shah
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Tanvir Ahmed (Senior Officer) in Remittance department Foreign Remittance from other
Exchange Service transaction happens. My job was to entry those transactions in a register and at
the end of the day sum up the Pin Number and check with the automated amount from computer.
The amount must be various.
Chapter-six
APPLICATION OF KNOWLEDGE
GAINED DURING BBA PROGRAM
ACCOMPLISH EACH TASK
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6.1 APPLICATION OF KNOWLEDGE GAINED DURING BBA PROGRAM ACCOMPLISH
EACH TASK
I am a student of Bachelor of Business Administration (BBA). This program contains 12 terms

including internship. 1st to 11th terms deal with educational activities and 12th in internship. As a
business student, I learned many things from my BBA program; gained a variety of knowledge
though the class lecture, text books assignment , presentation , viva , exam etc. while
conducting my internship following are some courses that have been highly helpful throughout
my internship report.
While conducting my internship program and making this report, the courses are started
below: 6.1.1 PRINCIPLES OF MANAGEMENT
We studied this course at 2nd semester of our BBA Program. It helped me learn how to manage
works in most efficient and effective manner and maintain the chain of command within the
organization. While doing internship program, I was able to complete my all tasks efficiently and
effectively at the shortest possible time and maintain the chain of command.
6.1.2 PRINCIPLES OF ACCOUNTING
During my internship program I was able to make various debit voucher and credit voucher by
applying the basic concepts learned from Principles of Accounting course which I studied at 2nd
semester. It was also possible for me to make the Financial Statement of Passport Fees for the
year of 2019-2020 of the particular branch by applying its theoretical concept.
6.1.3 BUSINESS COMMUNICATION
Business Communication is a course which we studied at the 4th semester. During my internship
this course helped to be a good communicator by different types of communication skills; like:
writing, speaking, listening and interpersonal. Following are the cases in where I needed these
skills during Internship program:-
✔ To communicate with the branch employees,
✔ To collect information from the customers and clients and
✔ To write formal letter and application
6.1.4 BANKING AND INSURANCE AND BANKING LAW AND PRACTICE
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th th
We have studied both courses at 7 semester and 10 semester respectively. It is a very
informative course for BBA students and its practical use is much more to do an internship
program especially in a bank organization. Firstly these courses give us a clear idea about bank,
banking, banker, customer, clients. By studying this course we have known about different types
of account; like
current account, savings account, fixed account, different types of cheques; like- bearer cheque,
crossed cheque, Bank cheque, antedated cheque etc, parties of cheque, inland remittance and
foreign remittance, reason of dishonoring a cheque. We have got a detailed idea about L.C. from
these courses.
6.1.5 ORGANIZATIONAL BEHAVIOR (OB)
Organizational Behavior is concerned with the behavioral issues and I read it at 7th semester of 4
(Four) years BBA Program. It is a course which comprises of all actions, norms, behavior which
an individual needs to follow within organization. This course made me aware about conduct in
the corporate field. During internship I needed the following things learned from this course:-
✔ Marinating office time properly
✔ Maintaining formal dress
✔ How to manage the customers in a diplomatic manner
✔ How to work in a team as well as an individual etc.
6.1.6 MANAGEMENT INFORMATION AND CONTROL SYSTEM (MICS)
Management Information and control enabled me to research this specific topic, analyze the
problem, think creatively, suggest a solution, and prepare a clear written presentation of the
solution and working individually to make the project. Studying this course at 8th semester I also
got a clear idea about 3 dimensions of information system that is quite needed to know for
working excellently in the bank organization for an employee.
6.1.7 HUMAN RESOURCE MANAGEMENT (HRM)
HRM is a course which tells us about the process of managing human resource and this course
was studied at 8th semester. Though this course seems only necessary for higher level employees
like manager to maintain good performance by hiring the right people in right place and
motivating them to achieve organizational goal, it is also necessary for all employees in case of
maintaining ethics and integrity in the workplace.
6.1.8 BUSINESS RESEARCH METHOD
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Business Research Method is a course which is a field of practical study and we studied it at 9th
semester. Studying this course I was able to obtain data and analyse them to make a critical
evaluation and to make the report a complete one. Following are the things learned from this
course by which I have benefited to prepare the report:-
✔ Different research methods,
✔ What are the relevant and legal source of data,
✔ How to collect data and information,
✔ How to filter the data and information,
✔ How to use facts and information for study,
✔ How to place right information in right place,
✔ To know and explain the purpose of the study and
✔ To identify the problems.
Page 49 of 60
Chapter-seven
MARKETING TECHNIQUES OF ICB
ISLAMIC BANK LTD.
Page 50 of 60
7.1 CUSTOMER-DRIVEN MARKETING STRATEGY BY ICB ISLAMIC
BANK LTD
ICB Islamic bank Ltd. has some strategy or techniques to get desired customer base. ICB Islamic
bank Ltd. can’t serve all people of our country because of its capacity limitation. So ICB Islamic
bank Ltd. divides the market into meaningful customer groups (segmentation), Choose a specific
groups to serve (Targeting), and then differentiate its offering to attract customer attention.
7.2 SEGMENTATION STRATEGY OF ICB ISLAMIC BANK LTD.

ICB Islamic bank Ltd. has divided the market into different segment which are given here:
✔ By Region: Whole country is divided into seven region or Division.
✔ By Religion: Population of our country is comprised of different religion such as Muslim,
Hindus, and Christian & Buddhist etc
✔ By Occupation: Professional, Technical, Businessmen, Farmers, Housewives, and
Students etc.
7.3 TARGETING STRATEGY OF ICB ISLAMIC BANK LTD. ICB Islamic
bank Ltd. follows both undifferentiated & differentiated marketing strategy for targeting their
whole market. ICB Islamic bank Ltd. targets whole market, it offers same services to all class
people of the society, people from any status, religion, and area can get the services of ICB
Islamic bank Ltd. It offers convenient services like, Deposit, Investment and Foreign exchange
products/services to its customer through 33 Branches. It also follow the differentiated marketing
strategy by providing or offering some special product/service scheme to a particular segment of
customers, like Agricultural loan only for the farmer, Student Account & Student loan, only for
the Muslim customer etc.
7.4 DIFFERENTIATION OF ICB ISLAMIC BANK LTD.

The main differentiation is that although ICB Islamic bank Ltd. is Export Import based schedule
commercial bank but at the same time it also a Based of Islamic Bank. Such as, it offers the
customer interest free banking service. Interest is strictly prohibited in Islam. So religious minded
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Muslims always prefer Commercial Bank. ICB Islamic bank Ltd. invests in the productive sector.
Bank works as a partner with its clients.
7.5 MARKET POSITIONING STRATEGY

ICB Islamic bank Ltd. is the first based Commercial Bank in Bangladesh. And they positioned
their bank as Commercial based schedule commercial bank. As it is a Commercial based bank so
the People who are Muslim have faith in ICB Islamic bank Ltd. believes in togetherness with its
customers, in its march on the road to growth & progress with services. To achieve the desired
goal, it has intention to pursuit of excellence at all stages with a climate of continuous
improvement. So, the Customer will motivate to its philosophy & be loyal to its services.
7.6 INTEGRATED MARKETING COMMUNICATIONS (PROMOTION

MIX) USED BY THE ICB ISLAMIC BANK LTD.
Marketing communications focus on immediate awareness, image, or preference goals in the
target market. But today marketers are moving toward viewing communications as managing the
customer relationship overtime. In banking industry relationship is based on trust. Clients always
seek security and safety as well as swift service. ICB Islamic bank Ltd. Provides banking services
to its client. Target customers are the people of all class of our society. ICB Islamic bank Ltd.
emphasize mostly on social welfare as well as on its business performance. So customers spread
positive word of mouth. Besides this they promote their services through different media, such as:
Advertisement:
✔ Television Advertising (New Branch Opening).
✔ Newspaper Ads (New Branch Opening & Special Offers).
✔ Magazine & Journals.
✔ Billboard.
✔ Calendar & Note Books.
✔ Prospectus.
✔ Annual Report. Etc
✔ Advertisement Provided On:
Television Advertising: ICB Islamic bank Ltd. informs its target customers through television
ads especially when a New Branch is likely to open. Television Ads help people to know the
location and date of commencing banking services in their localities.
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Newspaper Advertising: Bank publishes advertisement of launching a branch and other special
offers in different Daily Newspaper. It is needed to inform the customer about new services such
as ATM booth location, Xpress money service, Address change of a Branch, Consumer banking,
Household durables services etc. Newspaper ads are the most effective media for these services.
Different National Dailies chosen for ads are:
✔ The Daily Prothom Alo
✔ The Daily NayaDiganta
✔ The Daily Amar Desh
✔ The Daily star
✔ The Daily Sangram
✔ The Bangladesh Observer etc.
Magazine & Journals: Advertisement of consumer banking such as household durables
schemes, Special scheme for medical instrument, office furniture, computer, car investment
scheme and other services offered by the bank is published through this media.
Billboards: ICB Islamic bank Ltd. Doesn’t use the billboard but Digital and plastic signboard of
different branches also a kind of advertising. ATM Booth located in different areas of the cities
represent the bank’s logo.
Calendar & Note Books: Bank publishes wall calendar, desk calendar, diary, note books and
provides to its clients and different parties. Calendars of ICB Islamic bank Ltd. is composed of
Calligraphy, Historical location of Islam which motivates people to the Islam. Prospectus &
Annual Report: ICB Islamic bank Ltd. Publishes prospectus to collect shareholders and
bondholders. Annual report is published for the purpose of declaring dividend, equity and asset
of the bank. Annual report must be submitted parties like Bangladesh Bank, Shareholders,
different research firms and interested groups
Page 53 of 60
Chapter-Eight
FINDINGS, RECOMMENDATIONS,
CONCLUSION
Page 54 of 60

8.1 FINDINGS
During my internship period at Sylhet Branch of ICB Islamic Bank, I found strengths and
problems which are associated with both the bank and credit department. Some of them are
mentioned below:
✔ Great brand image, superior customer service and high customer satisfaction. ✔
Diversified deposit and loan products along with strong internet banking presence. ✔
Strong financial performance compare to contemporary competitors
✔ Good growth of loan to deposit ratio
✔ Growing number of Rural Branches
✔ Higher interest rates on advances compare to contemporary banks’ rates
✔ Lack of advanced training for officers
✔ Most of the customers are satisfied with the SMS Banking service of ICB Islamic Bank
Ltd. Though some customers are dissatisfied about the ATM Booth service, hopefully, the
organization will meet a solution of this quickly.
✔ Normally any person can purchase pay order, demand draft and telex transfer by
depositing money and commission. But the person who wants to purchase these should
have account in the bank branch. These will discourage customers to transact with bank.
✔ The degree of relationship between banker and customer determines how much theory is
deviated from practical work.
✔ Employees are not too much customers oriented and responsive.
✔ In another dimension where the customers showed higher dissatisfactory was the time
dimension that they have to wait to get their work done.
✔ The liquidity condition of the bank is much better that the sign of continues improvement.
✔ Return on assets ratio is higher that, indicates the effective managerial performance of the
ICB Islamic bank Ltd.
✔ The earning of the shareholders is much higher that is proven by return on equity.
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8.2 RECOMMENDATIONS
ICB Islamic should start strategic planning to increase the infrastructures and also important
constructs needed to support its large customer base. So, considering the service sector of
Bangladesh, ICB Islamic Bank should be more conscious to deal with its customers as the
customers have now more choice to bank with and there are institutions that are intensifying
competition by focusing more on superb customer service.
To identify these bank needs proper information system is required badly. Customer feedback can
make value to increase right services and relations to the right customers and increase precise
commitment, loyalty, trust and satisfaction to become with huge good relationship. ICB Islamic
Bank has several services gap to authentic of considerate the consumer behavior and their
potential attitude, which made them deficient in modern banks. ICB Islamic Bank has to
minimize their service gap though strong study on customer objection, expectation, perception
and critical internal marketing aspects. Steps should be taken to implement the new process in
order to ensure a smooth service as promised to customers.
✔ Employees are needed to give adequate training to work and handle clients under pressure.
In this case both the branch authorities and higher authorities can persuade each other to
train the employees.
✔ Digital indicators can be set up inside the branch so that the customers do not get confused
when they need to move from one section to another section. This will also enhance the
branch premise more professional.
✔ ICB Islamic Bank should increase more Consumer Banking activity. Their Consumer
banking activity is quite satisfactory but it will be better if they can put attention on
individual customer.
✔ They should invent other type of deposit to attract more customers which is different from
other banks.
✔ ICB Islamic Bank should maintain more cash and deposit balances with other banks.
Because it is desirable that banks keep their cash and balance with other bank to such
extent so that it can minimize the chance of liquidity crunch.
✔ Should develop more strategic planning as to compete with its rival banks.
✔ Should increase the number of ATMs and ensure their smooth operations.
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✔ ICB Islamic Bank should recruit more capable & experiences employees to spread the
products all over the country.
✔ The bank should pursue a defensive service quality strategy that is a slow going strategy
rather than offensive service strategy. That is should focus on Costs of operation,
increasing Volume of businesses with existing loyal customers, Segmentation of the
premium customers, foster a positive word of mouth communication in its existing
customers, etc. Though these strategies will take time to develop a huge customer base,
they will in the long run bring more loyal customers to ICB Islamic Bank, Sylhet branch.
✔ ICB Islamic Bank should maintain errors-free customer’s record & database which will
help to identify the major customer’s facility requirements.
✔ In order to increase the profitability and reduce the credit risk, ICB Islamic Bank Sylhet
branch should maintain a well-balanced portfolio. For example, instead of focusing on
just corporate banking and high profile business loan and leasing, it should also give
equal importance to retail banking. The more diversified the portfolio is the lesser the risk
of losses.
✔ There is really lack of indicators of ICB Islamic Bank in different places. In particular,
Sylhet branch can set up the indicators symbolizing the ICB Islamic Bank slogan and logo
at different locations so that people get to know more about this new branch.
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8.3 CONCLUSION
Since the banking service especially the private Banks are doing an outstanding business, so it is
clear that the modern people are more concerned about securing their valuable assets and get high
quality and timely services. For this reason lot of new commercial bank has been established in
last few years and these banks have made this banking sector very competitive. So, now banks
have to organize their operation and do their operations according to the need of the market.
Banking sectors no more depends on a traditional method of banking. In this competitive world
this sector has trenched its wings wide enough to cover any kind of financial services anywhere
in this world. The major task for banks, to survive in this competitive environment is by
managing
its assets and liabilities in an efficient way. ICB Islamic Bank is the most promising bank in
Bangladesh. Every day ICB Islamic Bank endeavor to increase their product and services
although they provide a wide range of product of services to their customers. ICB Islamic Bank
is helping the economy of Bangladesh by remitting of funds both local and foreign. For helping
the people the bank provides bridge financing loan, working capital loan to its corporate clients.
As modern function ICB Islamic Bank provides credit card facility, ATM card facility and any
branch banking facility to its customers. Doing my internship provided me with the opportunity
to gain hands on work experience that was not possible achieve in the classroom. I had a great
exposure while working in a banking environment. My internship helped me to develop essential
skills and build the confidence by performing essential tasks in the organization. While working
with ICB Islamic Bank, I have developed good organizational and communication skills. This
internship was an on the-job learning experience which enhanced my chances for early career
success. It provided me with a realistic work preview and offered practical, supervised learning
experience.
This project concentrated mostly on the general banking activities of the Sylhet branch and
identified some valuable information that could make the services more attractive and also
enhance the banks reputation among the customers. With the current performance of the Bank
and with little improvement here and there will certainly make ICB Islamic Bank one of the best
Private Bank in Bangladesh in the near future.
Page 58 of 60

REFERENCE
Bank Publication:
✔ Exchange rate. (2014). Hosssain 2005. Banking Sector , 42-47.
✔ Review (2006) Financial Sector ‟ of the Bangladesh Bank”
✔ Brochures and different forms including account opening form.
✔ Operation manual on General banking of ICB Islamic Bank Ltd.
Reports & Websites

✔ Annual report-2017, The ICB Islamic Bank Limited.
✔ www.google.com
✔ Official website of ICB Islamic Bank LTD.www.icbislamicbank.com ✔
https://www.scribd.com/document/340431634/Internship-Report-on-ICBIslamic Bank - Ltd
✔ https://en.wikipedia.org/wiki/Banking_in_Bangladesh
✔ Asibur Rahman (2013), Internship report on Electronic banking & Customer satisfaction.
✔ https://www.basis.org.bd/catalog/Banking%20Application/BankUltimus.pdf
Page 59 of 60

Acronyms & Abbreviations
AOF – Account Opening Form.
A/C - Account
ATM - Automated Teller Machine
BB – Bangladesh Bank
BBA – Bachelor of Business Administration
BASIC – Bangladesh Small Industries and Commerce
BDT – Bangladeshi Taka
CD – Current Deposit
CC - Cash Credit
CIB - Credit Information Bureau
CRR- Cash Reserve Requirement
CSE – Chittagong Stock Exchange
DD – Demand Draft
DPS – Deposit Pension Scheme
DSE – Dhaka Stock Exchange
FDR – Fixed Deposit Receipt
HRD - Human Resource Division
IBC – Inward Bill Collection
KYC – Know Your Customer
L/C – letter of Credit
MICR – Magnetic Ink Character Reader
OBC – Outward Bill Collection
SME – Small and Medium Business Enterprise
SND – Short Notice Deposit
SWIFT – Society for World Wide Inter Bank Financial
Telecommunication TT – Telegraphic Transfer
TIN – Tax Identification Number
TP - Transaction Profile
Page 60 of 60

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An Internship Report

"General Banking Activities of ICB Islamic Bank Limited Sylhet

Muminul Hoque Fahim

Date of Submission: 17​th ​September, 2020

Page ​1 ​of ​60

Md. Afsarul Islam

Subject: ​Submission of Internship Report

It is my pleasure to submit my internship report on ​“General Banking Activities of ICB Islamic

Muminul Hoque Fahim

Page ​2 ​of ​60

Md. Afsarul Islam

Ref No: 2020/BBA/08/39 Date: 17/09/2020

CERTIFICATE OF THE SUPERVISOR

I wish his every success in life.

Md. Afsarul Islam

Al-Hamra, Zindabazar, Sylhet-3100, Bangladesh

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3.1. ​HISTORY ​19-20​ ​3.2 ​MISSION 20

4.1 GENERAL BANKING (WORK RELATED ACTIVITIES) 27 ​4.2 VARIOUS

4.3 ​PROFIT RATES OF ICB ISLAMIC ON DIFFERENT DEPOSITS 30​ ​4.4

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CHAPTER SEVEN: 42-45​ ​MARKETING TECHNIQUE OF ICB ISLAMIC

8.1 ​FINDINGS ​47​ ​8.2 ​RECOMMENDATIONS ​48​ 8.3 ​CONCLUSION ​49-50

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Internship report is an important part requirement of BBA program of Metropolitan University.

1.6. ​LIMITATIONS OF THE STUDY

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2.2 HISTORY OF BANKING

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2.5 DEFINITION OF ISLAMIC BANK

2.6 LAW OF BANKING

2.7 FEATURES OF A BANK

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Figure: ​function of Bank

2.9 HISTORY OF BANKING INDUSTRY IN BANGLADESH ​After

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2.10 HISTORY OF ISLAMI BANK IN BANGLADESH

2.11 BANKS OF BANGLADESH AT A GLANCE​:

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21. One Bank Limited

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3.4 NATURE OF BUSINESS

3.5. SIGNIFICANT ACCOUNTING POLICES BASIS OF

3.9. BOARD OF DIRECTORS

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3.10 MANAGEMENT COMMITTEE

3.12. PRODUCT & SERVICES OF ICB ISLAMIC BANK LTD

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3.13 ​ELECTRONIC BANKING AT ​ICB ISLAMIC ​BANK LTD​.

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01 Al Wadiah Current Deposit(CD) MudarabaLakhpoti Deposit Scheme (LDS)

02 Mudaraba Savings Deposit (MSD) Mudaraba Millionaire Deposit Scheme (MDS)

03 Mudaraba Term Deposit (MTDR) MudarabaKotipoti Deposit Scheme

05 Mudaraba Short Notice Deposit

06 Mudaraba Double Deposit (MDD) Mudaraba Double Benefit Deposit Scheme

Date of Submission: 17th September, 2020

Page 1 of 60

Subject: Submission of Internship Report

It is my pleasure to submit my internship report on “General Banking Activities of ICB Islamic

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3.1. HISTORY 19-20 3.2 MISSION 20

4.1 GENERAL BANKING (WORK RELATED ACTIVITIES) 27 4.2 VARIOUS

4.3 PROFIT RATES OF ICB ISLAMIC ON DIFFERENT DEPOSITS 30 4.4

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CHAPTER SEVEN: 42-45 MARKETING TECHNIQUE OF ICB ISLAMIC

8.1 FINDINGS 47 8.2 RECOMMENDATIONS 48 8.3 CONCLUSION 49-50

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1.6. LIMITATIONS OF THE STUDY

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Figure: function of Bank

2.9 HISTORY OF BANKING INDUSTRY IN BANGLADESH After

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2.11 BANKS OF BANGLADESH AT A GLANCE:

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3.13 ELECTRONIC BANKING AT ICB ISLAMIC BANK LTD.

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4.3 PROFIT RATES OF ICB ISLAMIC ON DIFFERENT DEPOSITS Sl.

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4.12 DEMAND DRAFT (D.D.) & TELEGRAPHIC TRANSFER (T.T.) DD is a

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7.2 SEGMENTATION STRATEGY OF ICB ISLAMIC BANK LTD.

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