Southeast University

Final Assignment
Course Title: Operation Management
Course Code: MGT 517

Topic Name: A Report on Operations Management Practices in Service Industry-“ICB

Islamic Bank Limited Branch Banking”

Submitted To:

Engr. Sajjadul Mawla

Lecturer of Southeast University

Submitted By:

Tanvir Hossain
ID: 2021110005009
Section: 2
Program: EMBA (Friday)

Date of Submission: 11.10.2021

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 Letter of Transmittal

Date: 11.10.2021

Engr. Sajjadul Mawla

Lecturer of Southeast University, Dhaka.

Subject: “Submission of final report on Operations Management Practices in

Manufacturing/ Service Industry-ICB Islamic Bank Limited Branch Banking.”

Dear Sir,

With great pleasure, I hereby submit my final report on “Operations Management Practices in
Manufacturing/Service Industry “ICB Islamic Bank Limited Branch Banking”. This report has
been complete by the information that I gathered from course on Operation Management, which
I have completed during my MBA.

As a requirement of preparing this report based on knowledge in an organization that working on

it, so I selected ICB Islamic Bank Limited and its operation and management system. I have tried
my level best to complete this report meaningfully and correctly, as much as possible. I hope this
report will reflect on the contemporary issues on the Operation & Management System that will
practice by this organization.

Thanking you.

Sincerely yours,

Tanvir Hossain
ID: 2021110005009
Southeast University

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Serial No. Topic Details Page No.
1 Introduction 4
2 Executive Summary 4
3 Objective of the report 5
4 Literature Review 5
5 Limitation 6
6 Background of the ICB Islamic Bank Limited 6
7 Vision 7
8 Mission 7
9 Nature of Business 7
10 Branch Banking at ICBIBL 8
11 Branch Network all over Bangladesh 8
12 Branch Banking Services and Network 8
13 Branch Supervision and Operation Department 9
14 Branch Service process selection and design 10
15 Products & Services of ICB Islamic Bank Ltd on Branch Banking 10
16 Organogram of Branch Banking at iCBIBL 11
17 Section of ICBIBL Branch banking operations 12
18 Account Opening & Procedure 12
19 Remittance Section & Procedure 12
20 Clearing & Bills Section 13
21 Cash Section 13
22 Cash Receive Procedure 13
23 Cash Payment Procedure 14
24 Branch Business Section & Service 14
25 Report Have to send From Branch to Head office different department 15
26 Findings of the Study 16-17
27 Recommendation 17
28 Conclusion 18
29 Reference 18
Table of Contents

Introduction
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The role of operational management has become more diverse and challenging due to present
global business context, and rapid product development for customer requirements. Without the
effective performance of operations and process management, no company can be sustained and
succeed in long term mentioned that operation management is the costly part of an organization.
The program of EMBA (Friday) is a partial requirement to take test of real life challenge
conducted by the Course Student. Recognizing the importance of practical experience, and
course knowledge exposure is one of the most important parts of EMBA Program on operation
Management Subject. This is because theoretical knowledge gets its perfection with practical
application. It is the important part of making report for understanding the Operation strategy
and management by this program. This Course is four month duration. This report presents the
outcomes of the study of operations Managements practices in service industries as ICB Islamic
Bank Limited. I was assigned to topic “Operations Management Practices in Service
Industry-ICBIBL Branch Banking.” The primary goal of making this report to reflect the
operations Management practices of ICB Islamic Bank Limited. Report will make understand of
Operation Management of Branch Banking of ICB Islamic Bank Limited.

Executive Summary

The purpose of this study is to understand the Operational Management Practice at ICB Islamic
Bank Branch Banking service quality. I want try to reflect the overall Branch Banking
operational task and service quality with compliance issue. A self-administrated questionnaire
based field survey was conducted. Personal question to Branch Manager (BM) & Branch
Operation Manager (BOM) for find out the overall situation of operation & service quality and
understand the Customer demands. Data was collected from ICB Islamic Bank Ltd as an
employee at Branch Customer service Officer. Try to make understand the theoretical knowledge
and practical knowledge merge together on operational management Subject. Islamic banking
products and services are perceived unique and different compared with conventional banking
products and services. .ICB Islamic Bank is on shariah based bank all over the Bangladesh and
there all branches are Islamic shariah based branch. Operation management and chain of
command came from Head office and upper level management. However the issues connected in
the delivery of products and services are of substantial concern. Furthermore the study has practical
implications for ICB Islamic Bank Ltd. policy makers and managers to understand customer
perception and adjust its service quality according Operation Management.

Objective of the Report

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Principal Objective: The main objective of this report is to analysis Production and Operation
Management. Other objective of this report is to partial fulfillment of study on the Production
and Operations Management in the perspective of Bangladesh. This report is required as a
“partial fulfillment of course on the Production and Operations Management in the perspective
of Bangladesh”.

Literature Review
Services & Products and Operations Management: Transformation of production and
operational inputs into outputs that when distributed meet the needs of customer for service.

Input Transformation Process Output

 Branch  Product Design  Business
 Employees  Service planning  Service
 Technology
 Service & Products
 Information
 Capital Control
 Compliance.

Continuous
 Head Office
 Quality
 Operational
Cost

Limitations

The report is not free of limitations. Those are discuses below:

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 Lack of secondary information was the major problem that I faced during the study. The
annual report was the only secondary source of information, which is not sufficient to
provide the reader with proper ideas of Branch Banking operation of ICBIBL.
Due to limited knowledge in this field, not all the aspects of this study could cover.
Every organization has their own secrecy that is not revealing to others. While collecting
data i.e. interviewing the managers and employees, they did not disclose much
information for the sake of maintaining confidentiality of the organization.

Background of the “ICB Islamic Bank Limited”

One such institution in our banking sector is “ICB Islamic Bank Limited”. The bank has been
incorporated 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 take over 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.

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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 principal place of business is
the registered office at T.K. Bhaban ( 4th,14th, 15th, 16th Floor), 13, Kawran Bazar, Dhaka-
1215, Bangladesh..

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.

Vision
The vision of the Board and the Management is to lead the Bank to a new height with all rounds
of achievements and to make it a Bank for the new generation, for which all of us will feel proud
of. ICB Islamic Bank Limited visualizes itself as:

• Providing the greatest return to share holders by achieving sound profitable growth.
• Having staffs of the highest ability.
• Working together to make decisions, managing the change and getting things done

Mission
To establish Islamic Banking by translating the Islamic economic principles into practice,
blending the progressive Islamic Thoughts of Banking & latest financial services technologies
with commitment for 36 highest degree of accountability & transparency with all trust on Allah.

Nature of Business
The bank provides all kinds of commercial banking services to the customers observing the
provisions of the Bank Company Act 1991, Bangladesh Bank’s directions & principles of
Islamic Shariah.

Branch Banking at “ICB Islamic Bank Limited”

Operational excellence coupled with qualitative improvements continued to be of paramount

importance to the Bank. At present, the Bank has extended its services through thirty three (33)
Branches across the country. ICBIBL has been continuing an effective Cluster Management

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(Branch Mentorship) in its branch operations. The senior management is working closely with
Heads of Branches in their marketing efforts for Assets, Liabilities and other issues. Now the
Heads of Branches are exposed to more matured thoughts and ideas through Mentors resulting in
qualitative improvement of their business and operational activities.

Branch Network all over Bangladesh

Division No. of Branches

Dhaka 16
Chittagong 05
Sylhet 05
Khulna 04
Rajshahi 02
Barishal 01
Rangpur 01
Total 33

Branch Banking Network & Services

Technology plays a critical role in the performance of core functions of the bank. So network
and Services of branch are listed below:
33 online branches across the country.
“Silverlake” core banking solution which is worldwide premium core banking software.
13 own ATMs and 3000+ Partner ATM power with Q-cash network.
SMS Alert Service.
Strong foreign Corresponded banking with world leader banks.
Shariah based various deposit and current product.
Shariah based various Consumer, SME & Corporate Investment Product.

Branch Supervision and Operation Department

Branch Supervision and Operations Department consists of three units, viz Account Services,
Branch monitoring and Central Clearing. The Department is ensuring the services as per Service
Level Agreement (SLA) and mitigating the risks of account opening procedure to avoid money
laundering activities. It is a centralized department rendering services to all the branches by
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following local laws and guidelines provided by Bangladesh Financial Intelligence Unit (BFIU)
and UN Sanctions. The department coordinates with the branches in all kinds of operations issue.

Service Delivery  Responsible for client communications; and query and complaint
management.
 Handle all customer and contract related processes regarding
request, verifications and modifications
 Work closely with branch staff on handling client complaints.
Service  Monitor service performance of branch staff to ensure
Management professional services delivery
 Manage service staff to reinforce the culture of service delivery
People  Communicate bank information to branch employees
Management  Monitor staffing and scheduling; make staffing adjustments and
recommendations as necessary
 Supervise and support the routine operations of branches to
ascertain adherence to proper procedures
 Supervise activities and performance of operations personnel.
 Provide information and on-going feedback to branch staff.
 regarding expectation and performance
 Provides input to the branch manager regarding annual
performance reviews and professional development plans
Operations  Assist the Branch Manager to prepare and monitor budget and
capital expenditures.
 Responsible for implementation of branch policies and
procedures.
 Process day-to-day Privacy Act reports, performs annual review
and prepare documents for all audit and exams as necessary.
Compliance  Perform regular cash audits of teller counters, audit on other areas
such as cash vault, ATM, Travelers checks and the 37 safety
deposit box area as required by audit guidelines.

Branch Service Process selection and Design

The way of Services:

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 Everyone is well trained on services. We all think we know what we want from a
service organization and Customer Needs.
Services are idiosyncratic: what works well in providing one kind of service may
disastrous in another.
Quality of work is not quality of service. An auto dealership may do good work on
your car, but it may take a week to get the job done.
Service is a package combines tangible & intangible
One stop Service provided by “ICB Islamic Bank Limited”
Effective management of service requires understanding of marketing personnel &
operation.

Services often take the form of cycles of encounters involving face-to-face, telephone,
electromechanical and /or mail interaction.

Products & Services of ICB Islamic Bank Ltd on Branch Banking

To perform these functions of products simultaneously the bank divides its operations on branch
in four parts that is General Banking, Loan and Advances, Foreign Exchange and Account
section. The Bank has, in the meantime, introduced the following deposit schemes to encourage
and mobilize the deposits as well as for the welfare of the people. These deposit schemes have
been appreciated by the general people and have received huge response.

Organogram of Branch Banking at ICBIBL

Branch Manager (SAVP)

Branch Operation Manager (AVP) Branch Relationship Manager

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Cash Management Manager (SO) Customer Service Officer (Senior Officer)

Customer Service Officer (Officer)

Senior Cash Teller (Officer)

Customer Service Officer (Junior Officer)

Cash Teller (Officer)

Customer Service Officer (Junior Officer)

Cash Teller (Officer)

Relationship Officer (RO)

Cash Teller (Junior Officer)

Cash Teller (Junior Officer) Relationship Officer (JRO)

Sub-Staff
 Attendant(2)
 Security Guard (2)
 Cleaner(2)

Section of ICBIBL Branch banking operations

Account opening of all products.

Remittance section.
Clearing section.
Cash section.

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 Loan Disburse section.
E-GP tendering process.
Branch business section.
Account Opening & Procedure

Account opening section is an important factor for banks because customer is the main source of
bank. Selection of customer is another important factor. Banks success and failure largely
depends on their customers. If customers are not good then they may create fraud and other
problems by their account with bank and thus destroy goodwill of banks. Therefore, bank must
be conscious in selecting its customer. For this reason ICBIBL keep key information system.
Branch and Head office use BDS server system which is developed by Silverlake systems. All
the information input to this systems and main form of account opening send to the Head office
for rectify. If any documents or information missing head office sent the form as Error List to
Branch for recheck and solve the problems.

Remittance Section & Procedure

The major function of Islamic Banks is mobilization of fund. other than Bank provides
supplementary services to its clients. Clients need to remit money from one place to another for
their business or other purposes. Banks fulfill this need of customers by means of remittance
service. Money can be remitted domestically or internationally, which is known as local
remittance and foreign remittance respectively. Western Union and Ria Service are available in
Branch operation of ICBIBL. Software installed by head office with id and password. Authorised
officer first see the application and put the information to application software and operation task
maintain over the compliance systems. For every transaction officers needs to authorize from
Branch Operation Manager.

Clearing & Bills Section

1. Outward Clearing: This is the opposite flow of the Inward cheque clearance. When
ICBIBL cheque sends to other person of other bank that bank will do the same thing to
claim money from ICBIBL. With the same procedure like Inward clearing of that Bank.
At the time of Outward Cheque for clearing, the things must have to be checked: The
Clearing Seal, The Endorsement Seal, and The Branch Seal. And signature by BOM or
BM.

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 2. Inward Clearing: Whenever any branch of ICBIBL. Receives a cheque of other Bank to
collect money, then the branch sends the cheque to its Head Office. The Head Office
arranges the cheques separately by the name of different bank and then it send to the
respective bank for clearance by the clearinghouse. Those cheques of different Bank to
collect money for the ordered person are called Inward Cheque for clearing. Then these
cheques go for entry in to the Inward Registry Book and Database of Clearing
Department.

Cash Section

Cash section is an important section where cash transactions are made. Cash sections
demonstrate liquidity strength of a bank. It is also sensitive as it deals with liquid
money. Maximum concentration is given while working on this section. Tense
situation prevails if there is any imbalance in the cash account. There are various
systems maintain by cash officer that is under:

Cash payment
Cash receive
Cash Receive Procedure

When clients deposit cash, the bank officer (Cash) should follow the
following things:
Check and count the received cash.
Make sure that the amount in word and number in the deposit slip is same.
Check the account title and the number.
Depositor‘s the mobile number is in slip
Depositor‘s signature is in the slip.
Receive seal in the slip is a must.
At least, send the pay in slip/voucher to the deposit department or to the
respective department.
Deposit slip must be signed by the respective officer.

Cash Payment Procedure

Cheque, demand drafts, pay orders, pay slips and debit cash vouchers etc. are
received from various departments for payment of cash to customers/payees. It is the
officer‘s duty to make sure that the cheque or the instrument has been genuinely
passed. The following common precaution is thoroughly practiced before honoring a
cheque:

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 The Branch name.
The date in the cheque is very crucial. Cheque is normally valid for six months and pre-
dated cheques are asked to present after the date given.
Tk in words and figure of the cheque is same.
Balance in the account is available.
The specimen card signature and signature in the cheque should match.
Signature of recipient is obtained on the reverse of cheque.
In case, where a prior arrangement has been made with the bank, a client may overdraw against a
cheque.

Branch Business Section & Services

ICB Islamic Bank Branch business management is maintained by Branch Manager and
Relationship manager. Local L,C, Foreign L.C, MUSG, Home loan, Auto Loan, SME loan
products for Branch Business. ICB Islamic Bank offers all the investment products as Islamic
shariah.

Sales person are under the relationship manager & Branch Manager and they collect the
business by offering products to Customers
After Collection the customer’s sales officer collect documents and make application for
next process.
With Application sales officer submit to the relationship officer and after checking all
sort of documents as required discussed with Branch Manager.
After submit to the products application manager send the file to head office.
All the documents and deal done and observing head office approved the file.

Report Have to send From Branch to Head office different department

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 Findings of the study

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An open discussion based on some following important questions were held between me and
Branch Manager (BM) Also with Branch Operation Manager (BOM) on 30.09.2021 at the time
of 05 Pm for the purpose to gain knowledge about the Banking sector in terms of the
Operations management & Operation Service.
1. What is the competitive issue of this Bank? Why you are thinking like this way?
Answer: as a Small Country there are so many banks so the product development and
understanding Consumer demands is the major competitive issue for this Bank.
With developing the product and services bank have to think about operation strength and
expense on it. So many competition and exist market are small. So it’s taught for maintain.
My Understand: BM is right and doing business in this market is hard.

2. Which technical part management should improve for better operational Service?
Answer: This bank is stable and doing break-even point business with 1 st generation technical
support so for give competition bank have to think about online banking with Shariah based
ideas. Like 3rd generation bank r launching lots of new product with technical support.
My opinion: Thinking is real but bank have to think before long term investment.
  
3. What is your opinion about present service and operational work?
Answer: present operational work is doing lower with minimum man power at branch and this
bank have some serious long process operation which is not good and have to modify like
central clearing. Branch should have scanner and manpower for it.
4. How the product service is maintained?
Answer:
Supervision
Monitor by head office and Branch BM.
Individual liable for desire service.
Branch officers have to maintain quality service.
Opinion: There is good Service maintained & monitoring systems.

5. Is there any practice on supply chain strategy?

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Answer: Yes, supply chain strategy practice here that is from junior officers to end branch
Manager very process men taint proper way to get better output. We also maintain supply chain
management because it ensure minimum business it there will be loss of Branch & low
Services. It maintains from head office to branch level.
Comments: Yes, they aware about the supply chain strategy system. Because for customer
satisfied and success in branch business.    
6. Fully compliance are maintaining or not?
Answer: Every year 2 time internal auditor are doing audit and also Bangladesh bank external
auditor come at branch for checking the compliance issue.
Comments: highly this Bank is maintaining compliance in every sector of branch and head
office. 

Recommendation
From beginning to end my deep study and observations, some issues should developed as,
Location: The infrastructure is situating in front of main road. As a result, Branch Operational
Cost is So High. Branch should be the wide area with popular place on low Cost.

Technology: For increasing Online Banking ICB Islamic Bank need Some technical
Improvement like Online Apps for Banking.

ATM: Most of the ATM is Attach with Branch so outside lack of ATM. So ATM Capacity
Should increases.

Branch Number: ICB Islamic Bank Limited Should Develop or Maintain More Branches All
Over the Country.

Product of Service: More innovative and customer demandable product should develop for
encourage and serving the Customer to Bank.

Man Power Of operation and Business: Bank should increased more employee on
Operational Side and Business Departments.

Management level: Management level should well train with the help of highly skilled and
specialist personnel for the purpose to make their sense as to be more effective and efficient in
their daily activities.

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 Conclusion

This report does on ICB Islamic Bank Branch banking operational service and managements. It
was very understanding as it Operation of how BOM is practicing in such large organizations in
Bangladesh. It became evident through the study that administrative personnel in such
organizations are quite aware of Operation Managements concepts. As an organization, ICBIBL
is doing Shariah compliance based banking with good service with trust. The organization is
much more operation function compared to any other bank operating local or foreign in
Bangladesh. It is relentless in pursuit of business innovation and improvement. It has a reputation
as a Shariah banking for consumer. During working period I have attempted to enrich my
knowledge as much as possible that would be beneficial to develop my carrier positively
Understanding customer’s service and operational activities of ICBIBL.

References

Working on Branch Banking.

Discuss with BM & BOM.
Class sheet.
Operation management book.
Google.

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