Internship Report Spring 2019

Investment Performance
Evaluation of Islami Bank
Bangladesh Limited: A Study on
Kawran Bazar Branch

Submitted by
Md Manjerul Islam
Id. No.: 161411307
Finance, Banking and Insurance

Submitted to
Dr. Mihir Kumar Roy, PhD
Professor and Dean
Department of Business Administration
City University, Dhaka, Bangladesh

Date of Submission: March 20, 2020

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Letter of Transmittal
Acknowledgments

In the beginning, I would like to express my deepest gratitude to the Almighty Allah for
giving me the strength & the composure to complete the internship report. I feel satisfied and
glad that I have completed this study within a specific duration.

At first, I would like to express my deep sense of gratitude to my supervisor Dr. Mihir Kumar
Roy (Professor and Dean, Department of Business Administration, City University) for his
motivating inspiration, kind direction, valuable suggestions and advice in preparing this
report. By his effective guideline, I can finish my task successfully. Without his assistance, I
would not able to complete my report neatly in this limited time. I would like to thank my
organization supervisor Mohammad Nazrul Islam, (Principle Officer, Kawran Bazar Branch,
IBBL) for his kind help and instruction.

I am also deeply thankful to Md Sahriar Pervez (Associate Professor and Head, Department
of Business Administration, City University), MD Zillur Rahman (Senior Vice President and
Head of the Branch, Kawran Bazar Branch, IBBL), K.M. Rahmatullah (First Assistant Vice
President and Internship Program Coordinator, IBTRA), Mohmmad Rezauul Alam (Principle
Officer, Investment Department, Kawran Bazar Branch, IBBL)

I also acknowledge my thanks and gratefulness to our respective faculties whose important
advice helps me to finish the report. I am extremely thankful to the officers of Kawran Bazar
Branch, Islami Bank Bangladesh Limited for their kind support. I am also grateful to the
authors whose books, literature, research papers, journals, articles, reports, and websites I
follow to complete the report. Thanks to all those persons, who have assisted me and support
me to finish the report. Without their support and cooperation, this report would have
remained a dream.

Md Manjerul Islam
Id No.: 161411307
BBA (FINANCE)

Investment Performance Evaluation of Islami Bank

Bangladesh Limited: A Study on Kawran Bazar Branch
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E-mail: manjerul.cub@gmail.com

Investment Performance Evaluation of Islami Bank

Bangladesh Limited: A Study on Kawran Bazar Branch
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Student’s Declaration

I am Md Manjerul Islam, ID No.:161411307, Student of Bachelor of Business Administration

Program in Department of Business Administration, City University Bangladesh, Major in
Finance, Banking, and Insurance; do hereby declare that the internship report titled,
“Investment Performance Evaluation of Islami Bank Bangladesh Limited: A Study on
Kawran Bazar Branch” is an original work and it is individually completed by me after
completing 60 days internship program of Islami Bank Bangladesh Limited for partial
fulfillment of my BBA degree and as a part of the academic curriculum. Nothing of this
report is duplicate and nothing of this report is against the law of Bangladesh.

I also would like to declare that this report is prepared exclusively for academic purposes and
not for any other reason.

________________

Md Manjerul Islam
Id No.: 161411307
BBA (FINANCE)
E-mail: manjerul.cub@gmail.com

Investment Performance Evaluation of Islami Bank

Bangladesh Limited: A Study on Kawran Bazar Branch
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Letter of Endorsement

I hereby declare that the internship report on “Investment Performance Evaluation of

Islami Bank Bangladesh Limited: A Study on Kawran Bazar Branch” is completed by
Md Manjerul Islam, Id No.: 161411307 as partial fulfillment of requirements for the degree
of ‘Bachelor of Business Administration (BBA) in Finance, Banking, and Insurance’ from
Department of Business Administration, City University. The study has been carried out
under my guidance and is a record of the sincere work carried out with success.

I wish him every success in life.

________________
Dr. Mihir Kumar Roy
Supervisor and Dean
Department of Business Administration
City University, Dhaka, Bangladesh

Investment Performance Evaluation of Islami Bank

Bangladesh Limited: A Study on Kawran Bazar Branch
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Letter of transmittal
March 20, 2020,

Dr. Mihir Kumar Roy,

Professor and Dean
Department of Business Administration
City University
Dhaka, Bangladesh

Subject: Submission of the Internship Report

Dear Sir,

I have a great pleasure to submit my internship research report “Investment Performance

Evaluation of Islami Bank Bangladesh Limited: A Study on Kawran Bazar Branch” in
compliance with the proposal I submitted and subsequently accepted by you. I have tried as
far as it was possible to meet all the specifications and instructions you have provided for the
report and necessary to prepare a report.

This report gives you a brief picture of Investment Performance in Islami Bank Bangladesh
Limited, Kawran Bazar Branch and its effect on branch financial performance. I hope that
this report can meet your specifications and would be delighted to furnish you with any
clarification if needed.

Finally, I express my gratitude for your supportive thought and kind consideration in making
this report. Without any doubt, these experiences enhance my knowledge to a greater degree.
It will be a great pleasure for me if you accept the report. For any further query please contact
me, I will gladly answer them.

Thanks, and regards.

Sincerely yours,

Md Manjerul Islam
Id No.: 161411307
BBA (FINANCE)
E-mail: manjerul.cub@gmail.com

Investment Performance Evaluation of Islami Bank

Bangladesh Limited: A Study on Kawran Bazar Branch
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Table of Content

Investment Performance Evaluation of Islami Bank

Bangladesh Limited: A Study on Kawran Bazar Branch
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Page(s)
Acknowledgment i
Student’s Declaration ii
Letter of Endowment iii
Letter of Transmittal iii
Table of Content v
List of Charts vi
List of Glossary vii
Executive Summary viii
Chapter One: Introduction
01.01. Title of The Study 2
01.02. Origin of the Report 2
01.03. Problem Statement 2
01.04. Rationale of the Study 3
01.05. Scope of the Study 4
01.06. Objective of the Study 5
01.07. Limitation of the Study 5
Chapter Two: methodology of the Study
02.01. Type of The Study 7
02.02. Study Area 7
02.03. Research design 7
02.04. Source of the Data 7
02.05. Analysis and Presenting Procedure 8
Chapter Three: Review of Related Literature
03.01. Literature Review 10
Chapter Four: Organization Overview
04.01. introduction of the Organization 15
04.02. Branch information 22
Chapter Five: Analysis and Findings
05.01. Analysis: Branch Investment Performance 32
05.02. Overall Financial Performance of The Bank 57
05.01. Findings 58
Chapter Six: Recommendation and Conclusion
07.01. Recommendation 60
08.01. Conclusion 61
References
Appendix
List of Tables, Figures, Charts, and Graphs

Investment Performance Evaluation of Islami Bank

Bangladesh Limited: A Study on Kawran Bazar Branch
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Figure 04.01.01: Organogram of IBBL (Page 21)

Figure 04.02.01: Organogram of IBBL Kawran Bazar Branch (Page 23)
Graph 05.01.01.(A): Total Deposit (Page 32)
Graph 05.01.01(B): Deposit growth rate (Page 32)
Graph 05.01.02(A): Advancement (Page 33)
Graph 05.02.02(B): Advancement growth rate (Page 33)
Graph 05.01.03: Deposit to Investment ratio (Investment as % of Deposit) (Page 34)
Graph 05.01.04: Realization of advancement (Page35)
Graph 05.01.05: Overdue of the advancement (Page 36)
Graph 05.01.06: Overdue and realization as % of Advancement (Page 37)
Graph 05.01.07: Non-Performing Investment (Page 38)
Graph 05.01.08: NPI growth (Page 39)
Graph 05.01.09: NPI category wise ratio (Page 40)
Graph 05.01.10: NPI as % of Advancement (Page 41)
Graph 05.01.11: NPI as % of total overdue (Page 42)
Growth 05.01.12: Bad loan to advancement ratio (Page 43)
Graph 05.01.13: Bad loan as % of Overdue (Page 44)
Graph 05.01.14: Bad loan as % of NPI (Page 45)
Graph 05.01.15: Mode wise Investment (Page 46)
Graph 05.01.16: Mode wise investment ratio (Page 47)
Graph 05.01.17: Mode wise realization (Page 48)
Graph 05.01.18: Mode wise realization ratio (Page 49)
Graph 05.01.19: Mode wise realization (Page 50)
Graph 05.01.20: Sector wise overdue ratio (Page 51)
Graph 05.01.21: Sector wise investment (Page 52)
Graph 05.01.22: Sector wise investment ratio (Page 53)
Graph 05.01.23: Total income (Page 54)
Graph 05.01.24: Source wise income ratio (Page 55)
Graph 05.01.25: Income statement (Page 56)
Graph 05.02.01: Overall performance of the Bank  (Page 57)

List of Glossary

Investment Performance Evaluation of Islami Bank

Bangladesh Limited: A Study on Kawran Bazar Branch
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IBBL : Islami Bank Bangladesh Limited

Ltd : Limited
BDT : Bangladeshi Taka (Currency of Bangladesh)
HPSM : Hire Purchase under Shirkatul Milk
MPI : Murabaha Post Import Investment
TR : Trust Receipt
BoD : Board of Directors
CEO : Chief Executive Officer
MD : Managing Director
SME : Small and medium-sized enterprises
TIN : Tax Identification Number
BIN : Business Identification Number
A/c : Account
BB : Bangladesh Bank
IBTRA : Islami Bank Training and Research Academy
GB : General Banking
KYC : Know Your Customer
MSA : Mudaraba savings Account
SME : Small Medium Enterprise
HDS : Household Durable Scheme
RDS : Rural Development Scheme
UPDS : Urban Poor Development Scheme
MTDR : Mudaraba Term Deposit Receipt
RR : Rate of Return
ATM : Automated Teller Machine
ibanking : Internet banking
MSSA : Mudaraba Special Savings Account
PLS : Profit-Loss Sharing
Bai : Buy and sell method.
Riba : Interest, Excess, Addition, Increase
Shariah : The law of Islam according to the Holy Quran and the Sunnah.

Executive Summary
Investment Performance Evaluation of Islami Bank
Bangladesh Limited: A Study on Kawran Bazar Branch
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This internship report on “Investment Performance Evaluation of Islami Bank Bangladesh

Limited: A Study on Kawran Bazar Branch” was prepared to fulfill the requirement for the
degree of “BBA in HRM” from City University. This report is the result of 3 months' long
practical desk work of the IBBL Kawran Bazar Branch. Since my internship program, my
task and the objectives of the report were designed to understand the investment activities and
evaluate the performance of the investment section on this branch. For making ready this
report I tried my best to collect data and analyze those data to find out the objectives.

This report has provided a clear idea about the Modes of investment of Islami Bank
Bangladesh Limited. It contains three main parts. The first part is the introduction part. The
second part is the profile of IBBL which gives a clear idea about the establishment of IBBL.
The third part focuses on the Internship Position and Duties. End of the report there has
learning points, Problems, Recommendations, and Conclusion.

Islami Bank Bangladesh Limited is the largest commercial bank in Bangladesh. And it has
the largest number of customer base and a strong position in market share. Among all
activities of a bank, investment is the priority activity since it is the main source of income.
This report covers the activities and performance in the investment section in IBBL Kawran
Bazar Branch. IBBL Kawran Bazar Branch has a good performance in their investment
section. Though their overdue ratio is almost 50:50; but their performance in NPL control is
highly appreciated. Their NPL is less than 1.5% of total advancement. IBBL Kawran Bazar
Branch should control their expense management to increase its profitability.

Without any doubt, IBBL is the market leader in the Bangladeshi banking industry but IBBL
should develop its IT section, Financial management, Human Resource Management, and
Marketing Management. IBBL has enough financial resources and a large workforce but they
have to increase effectiveness and efficiency in their work to maintain the top position in
future time. Finally, with the best regards to these companies for their social welfare policies
and activities and an honest transparent banking system.

Investment Performance Evaluation of Islami Bank

Bangladesh Limited: A Study on Kawran Bazar Branch