8/11/2021 PINDI BHATTIAN: Internship Report Dubai Islamic Bank For (B&F) Students

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03 November 2011

Internship Report Dubai Islamic Bank For (B&F)

Students
ACKNOWLEDGEMENT

First
of all I am thankful to "ALMIGHTY ALLAH" Who gave me the strength,
patience, courage and enthusiasm needed to write and complete this report,
and
countless salutations to upon the Holy Prophet Muhammad (PBUH), the sea
of
knowledge who has guided His Ummah to seek knowledge from cradle to
grave.     
Then
to my friends who assisted me in this effort and we worked daylong to
accomplish this assignment. I have a debt of gratitude to all my teachers who
taught me throughout my academic career.
The
preparation of this report was a massive undertaking but the highly
competent
and experienced bankers of DIBPL, F-10 Markaz Branch Islamabad
provided me with
all assistance, information, advice and suggestions that I
needed which
contributed importantly to this report.

                                                       
                  
                                                                                   
    
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4
5
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1.
EXECUTIVE SUMMARY

As per the requirements for the degree of MBA at AIOU, I got

an opportunity to get
eight weeks internship exposure. Dubai Islamic Bank, F-10
Markaz, Islamabad
provides me the chance to have this experience with a
prestigious institution.
During my internship I was rotated in the various
departments in order to get in
depth idea of how the bank functions. This report
thoroughly outlines and explains
my observations, findings and analysis and my
knowledge of the banking sector in
general and Dubai Islamic Bank in
particular.

In this report, there is an introduction of Dubai Islamic

Bank. In introduction, there
is history of Dubai Islamic Bank, strong
commitment and loyal service, highly
trained professionals, and credit rating.
The report also includes the details of the
products offered by DIBPL which
includes Takaful plan and other Islamic
Compliance products. This report also
focuses the general banking of DIBPL which
includes Cash department,
Remittances section, Account opening, Debt cards etc.

Subsequent to it this report contains my experience and

learning that what I have
learned from this internship and what was my
experience regarding this internship.
The report also contains my analysis that
I scrutinize in the organization by using
two method SWOT and Financial
analysis. With the help of these methods I have
some suggestions and recommendations
to improve the performance of the Bank,
which also mentioned in this report. By
following these suggestions bank can
improve their product market and can
easily gain the attraction and satisfaction of
customers. Not only the
customers, bank also can improve the satisfaction and
performance level of its
employees by these suggestions.

 2. OBJECTIVES OF
STUDYING THE
ORGANIZATION
Overview
After the completion of degree MBA (Banking & Finance) I want to
enter and check
the practical work according to my specialization. For that
purpose I selected the
banking sector because I have done specialization in
banking and finance.
Second and next main objective of studying organization; I want to
enter in
practical field and want to learn that which discipline is required for
leading a
successful future life. I think I am very lucky person that I
selected Dubai Islamic
Bank as my learning organization.

 Objectives that I want to

achieve
Objectives that I
want to achieve by studying the organization are as follows:
First of all I want to check the practical work
according to my degree
specialization. During my internship in Dubai
Islamic Bank I have learnt
that how to use the knowledge in practical
field.
Secondly I want to learn that how to mange an
organization and how to
mange the finance for a financial organization, as
my degree is related
to Financial Management and Banking and Finance.

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Customers dealing is another major objective that I want
to achieve.
During my internship I learnt that how to deal with customer.
Financial
institution is a place where every type of businessmen visits,
so during
my internship in DIBPL I met with many businessmen and
learnt that how
different businesses run.
And another
main objective that I want to achieve that how an
organization consist
with different departments and how different
functions are done in
different departments of an organization.
Through
this internship I learned many things. It was a great experience for me
to
comprehend the working environment. During this period I face different
types
of working conditions, which will help me to know that, how to handle
these
conditions in future. Through this internship I am able to do work in all
departments of Bank because I know all rules, policies, and responsibilities,
which mentioned in DIBPL departments and products of these departments so I
achieved 80% of my objective

                3.
OVERVIEW OF THE
ORGANIZATION
Dubai Islamic Bank is the leading Islamic bank
operating in Pakistan. Its
balance sheet size is improving with the passage of
time. It has redefined its
role and has moved from a public sector organization
into a modern Islamic
bank. The Bank's services are available to individuals,
corporate entities. While
it continues to act as investor of public funds and
it has diversified its business
portfolio and is today a lead player in the
debt equity market, corporate
investment banking, retail and consumer banking,
treasury services and is
showing growing interest in promoting and developing
the country's small and
medium enterprises and at the same time fulfilling its
social responsibilities, as
a corporate citizen.
In
today's competitive business environment, DIBPL need to redefine its role
and
shed the public sector bank image, for a modern Islamic bank. It is listed
in Securities
and Exchange Commission of Pakistan in 2006.
Dubai Islamic Bank is today a progressive, efficient, and
customer focused
institution. It has developed a wide range of consumer
products, to enhance
business and cater to the different segments of society.
Some schemes have
been specifically designed for the low to middle income
segments of the
population.
It has taken various measures to facilitate overseas
Pakistanis to send their
remittances in a convenient and efficient manner. More
recently it has started
Electronic Home Remittances Project. This project
introduces technology
based system to handle inward remittances efficiently, by
ensuring that the
Bank's branches keep a track of the remittance received from abroad
till its
final receipt. A number of initiatives have been taken, in terms of
institutional
restructuring, changes in the field structure, in policies and
procedures, in
internal control systems with special emphasis on corporate
governance,
adoption of Capital Adequacy Standards under Basel II framework, in
the up
gradation of the IT infrastructure and developing the human resource. Dubai
Islamic Bank has built an extensive branch network with 36 branches in
Pakistan.
  The Bank's financial performance has
been remarkable. In 2006,
total assets are estimated at Rs 8434280000, while
deposits have grown to
nearly Rs 4322621000. The increase in profit was
achieved through strong
growth in core banking income. The Bank maintains a
sound loan portfolio
diversified in nature to counter the risk of credit
concentration.

  3.1 HISTORY OF DUBAI ISLAMIC BANK

PAKISTAN
LTD.

Thirty years ago Dubai Islamic Bank created history by becoming

Worlds first
Islamic Bank. Today Islamic Banking has become one of the fastest
growing
economic sectors with over 300 financial institutions; with assets
estimated over at
300 billion US Dollar providing Islamic Financial Services.
Despite huge growth to
the sector DIB is continued to be the pioneer and leader
to date. Since its
inception DIB has evolved retail bank to a fully fledged
bank catering to almost all
the requirements of the customers in providing to
Sharia Compliant solutions
locally and internationally. It has constantly
upgraded its services to individuals
and companies who always remain a valuable
asset.

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By combining the best Islamic traditional values with high standards
technology
and innovation, DIB is committed to comply with not only fully
transactions of
financial dealings. DIB is also committed to provide
customer-satisfaction oriented
job.
For its outstanding performance and contribution for Islamic
financing, DIB
received the best Islamic Bank award in the Middle East Award
2006; by both Euro
moneys Islamic Finance Weekly and Gulf Wealth Forum. DIB has
also awarded the
bank of the year 2006 Banker Awards.
DIBPL has started its operations since 2005. At that time the scale
of business and
number of branches were very short. But just within the time
period of five years,
now DIB has an extensive network of branches, a wide
range of Islamic Compliant
Products, well-managed communication system and good
return from operations.

                                  3.2 NATURE OF THE

ORGANIZATION

Dubai Islamic
Bank Pakistan Ltd. is a public Organization. It implements the
policies of SBP.
Its basic objective is to maximize the profit. It has major impacts
on Pakistan
economy with special emphasis on fostering Pakistan's economic
growth through
aggressive and balanced lending policies, technologically oriented
products and
services offered through its network of branches. It deals with
Revenue, collection and payments of salaries. It is a complete Islamic, retail
and
corporate bank as well.
The Dubai
Islamic Bank is an Islamic institute which offers a variety of products
according to the Sharia principles and instructions. All the products and
services
are regulated by Sharia Board. If they find someone violating the
rules, they
penalize. The Dubai Islamic Bank makes different adjustments to
update business
operations.
The Bank has
also played an important role in financing the country’s growing
trade, which
has expanded through the years as diversification took place. Dubai
Islamic
Bank Pakistan Ltd. maintains its position as Pakistan's one of the premier
bank
determined to set higher standards.

3.3 BUSINESS VOLUME

Dubai
Islamic Bank’s business volume is expanding day by day and now it becomes
leading
bank of the Islamic Banking Sector. The authorized
capital of the Bank is
Rs.6776 million divided into ordinary shares of Rs 10 each.
The Bank is a subsidiary
of Dubai Islamic Bank PJSC, UAE (The holding Company).

 FIVE YEARS PERFORMANCE OF DIB

                                   
Table: Business Volume
Years 2005 2006 2007 2008 2009
Total Assets 497 8434 21308 32050 35368

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Deposits (Rs
in Million) - 4322 16114 25459 27981
Advances (Rs
in Million) - 3274 11348 18074 20590

Investments       - 833 2974 3019 2823

Shareholder'
Equity 418    3917 5126 6018 6776
Pre-Tax
Profit/ (Loss) (Rs in
- -633 -568 -272 352
Million)
After-Tax
Profit/ (Loss) (Rs in
- -412 -369 -182 277
Million)
Earning Per
Share (Rs) - -2.09 -0.89 -0.35 0.38

Number of
Branches 5 10 17 25 36

Number of
Employees 120 225 350 470 722

Source: DIB annual report 2009

DIBPL top line (operating revenue) is 352

million in 2009 which is showing a unique
achievement of this organization. In
2008, the DIB was suffering loss of 272 million
due to heavy investment in
infrastructure and other resources. DIB has improved
its growth by over 200%.
In 2007, the bank was suffering a loss of 568 million which
is more than twice
from 2008. These trends show that how efficiently and
effectively working and
improving its standards by offering a wide variety of
Islamic Compliant
products and by bringing innovations. Despite of profitability
trends, here we
can also see the flow of deposits, advances and investment. The

earning per
share loss is recovered by the bank with very rapid approach.

3.4 NUMBER OF EMPLOYEES

DESIGNATION NO OF EMPLOYEES
President

1
Senior Executive vice president 1

Executive vice president 1

Vice president 1

Assistant vice president 1

Branch Manager
36

36
Manager Operations

36
Credit Manager

15
Manager Finance

36
Manager Marketing 20

Manager Foreign Exchange 15

Manager Consumer Finance 36

Legal Advisor 80

IT Officer
75

50
Cash Officer

68
Accounts Officer

94
Clearing Officer

95
BDO _______
Teller
TOTAL 722
Figure:  ORGANIZATION CHART OF DUBAI ISLAMIC
BANK
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PAKISTAN
LTD.

DESIGNATION FOR HIGHER LEVEL OFFICE

PRESIDENT

Ê
SENIOR
EXECUTIVE VICE PRESIDENT

Ê
EXECUTIVE VICE PRESIDENT

Ê
VICE PRESIDENT

Ê
ASSISTANT VICE PRESIDENT

Ê
GRADE
I OFFICER

Ê
GRADE
II OFFICER

Ê
GRADE
III OFFICER

3.5 PRODUCT LINES & SERVICES

3.5.1 PRODUCTS OF DI

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