INTERNSHIP REPORT

ON
GENERAL BANKING OF FIRST SECURITY ISLAMI BANK LTD.

Pabna Branch, Pabna.

SUPERVISED BY:

Dr. Md. Abdullah Al Mamun

Associate professor
Department of Business Administration
Pabna University of Science and Technology
This Internship Report is submitted to the Department of Business Administration (major in
Finance and Banking) Pabna University of Science And Technology in partial fulfillment of the
requirement for the Degree of Bachelors of Business Administration (BBA).

SUBMITTED BY:

Md. Tipusultan
Student ID. 170409
Session: 2016-17
Department of Business Administration,
Pabna University of Science And Technology

Submission Date: July 25, 2022.

Department of Business Administration

Page 1
 INTERNSHIP REPORT
ON
GENERAL BANKING OF FIRST SECURITY ISLAMI BANK LTD.

Pabna Branch, Pabna.

SUPERVISED BY:

Dr. Md. Abdullah Al Mamun

Associate professor
Department of Business Administration
Pabna University of Science and Technology
This Internship Report is submitted to the Department of Business Administration ( major in
Finance and Banking) Pabna University of Science And Technology in partial fulfillment of the
requirement for the Degree of Bachelors of Business Administration (BBA).

SUBMITTED BY:

Md. Tipusultan
Student ID. 170409
Session: 2016-17
Department of Business Administration,
Pabna University of Science And Technology

Submission Date: July 25, 2022.

Department of Business Administration

Page 2
 DEDICATED
TO
MY BELOVED PARENTS

HONOURABLE SUPERVISOR

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 STUDENT’S DECLARATION

I, Md.Tipusultan hereby declare that the presented report of Internship entitled “General
Banking of First security Islami Bank Ltd. Pabna Branch, Pabna” a study on First Security
Islami Bank Limited., Pabna Branch, Pabna. is uniquely prepared by me after the
completion of three months of work experience in First Security Islami Bank Limited.
I also confirm that the report is only prepared for my academic requirement, not for any
other purpose. It might not be used with the interest of the opposite party of the
cooperation.

……………………………….

Md. Tipusultan
Student ID: 170409
Session: 2016-17
Dept. of Business Administration
Pabna University of Science and Technology.

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 LETTER OF TRANSMITTAL

25 July, 2022

Dr. Md. Abdullah Al Mamun

Associate Professor
Department of Business Administration
Pabna University of Science And Technology.

Subject: Submission of Internship Report.

Dear Sir,

I have great pleasure to replace before you my Practical Orientation in Bank report on
First Security Islami Bank Ltd., Pabna Branch, Pabna where I have completed my
orientation in Bank program as a part of the BBA curriculum since I am an employee of
the bank and working in the same branch. I have observed and studied different services
and modes of investment of a bank and was assigned to submit a report on “General
Banking of First Security Islami Bank Ltd., Pabna Branch, Pabna”. To prepare this report, I
have gathered what I believe to be the most complete information available. Reading
different articles, annual report, and web site etc. related to the Banking area, I have
collected much of the information.
The experience I have gathered during this period will remain as an invaluable asset of
immense useful in my life. I have worked hard preparing this report and I hope it will
satisfy my course requirement for BBA Program. I request you to excuse me for any
mistake that may occur in the report despite of my best effort. I will be grateful if you
kindly accept it.

Sincerely yours

Md. Tipusultan
Student ID: 170409
Session: 2016-17
Dept. of Business Administration
Pabna University of Science and Technology.

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 ACCEPTANCE LETTER

This is to certify that MD. TIPUSULTAN, Student ID: 170409, Session: 2016-17, BBA,
(Major in Finance and Banking) Department of Business Administration, Pabna
University of Science And Technology has successfully completed his Project report on
“General Banking of First Security Islami Bank Ltd., Pabna Branch, Pabna. He has prepared
this report under my supervision. During the program he was found sincere in her
assignment.

I wish success in his entire life.

Supervisor,

Dr. Md. Abdullah Al Mamun

Associate Professor
Department of Business Administration
Pabna University of Science and Technology.

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 ACKNOWLEDGEMENT

I am very glad that in spite of many limitations I have completed the Internship Report
successfully. Preparing this report, I received cordial and sincere assistance from many
concerns. First of all I wish to thanks the immeasurable grace and profound kindness of
the Almighty Allah, the supreme authority of the universe. From the first inception until
the final completion of this report, the success of this study rests not on me alone but on
the contributions of many persons who have inspired, influence and guided my work.
I express my deep sense of gratitude and sincere appreciation to my honorable teacher
and supervisor Dr. Md. Abdullah Al Mamun, Department of Business Administration,
Pabna University of Science and Technology, for his guidance, tolerance, sincerity and
wholehearted contribution till the ending of my report. I am under his supervision during
the period and preparation of my report.
At last I would like to thanks to personnel of the organization and special thanks to
colleagues of First Security Islami Bank Ltd., Pabna Branch, Pabna, who has directly and
indirectly provide valuable insights, support and encouragement. I must mention the
wonderful working environment and group commitment of this bank that has enable me
a lot deal to do and observe the banking activities during my internship period. Finally I
would like to thank everybody from the core of my heart.

Md. Tipusultan
Student ID: 170409
Session: 2016-17
Department of Business Administration
Pabna University of Science and Technology.

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 PREFACE

Knowledge and learning become perfect when it is associated with theory and practice.
Theoretical knowledge gets its perfection with practical application. As our educational system
predominantly text based, inclusion practical orientation program, as an academic component is
as exception to the norm, at the time of achieving knowledge in their field of work. So after the
achievement of academic education, students must have to know the avenues through which they
can help their knowledge in the different complex situation of practical life as well. This internship
program is an obvious effort to gather knowledge for the practical field immediately after the
completion of theoretical examination.

To realize the concept of Banking, Department of Business Administration, Pabna University of

Science and Technology, has taken massive program entitling “Internship Report” for three
months (90 days) at the end of BBA with a view to the knowledge of the students practically.

Being a student of BBA, I was assigned to work on the “General Banking of First Security Islami
Bank Ltd., Pabna Branch, Pabna.” I have tried my best to bring out the fulfillment of the study &
highlight the aspect of the subject. My effort will be meaningful as this report serves the purpose
effectively. I have taken as part in this program arranged in the bank.

I have made all possible efforts to submit this report.

Md. Tipusultan
Student ID: 170409
Session: 2016-17
Department of Business Administration
Pabna University of Science and Technology

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 TABLE OF CONTENT

CHAPTER TOPIC Page

No

INTRODUCTION 1-14

1.1 Introduction 12

1.2 Origin of the report 12

Chapter- One 1.3 Statement of the problem 13

1.4 Objectives of the study 13

1.5 Methodology and data 13

1.6 Limitation of the study 14

CHAPTER ABOUT FIRST SECURITY ISLAMI BANK LTD. 15-19

2.1 Introduction 15

2.2 What is Islamic Banking 15

2.3 FSIBL in Bangladesh(Shariah based Islamic bank) 15

2.4 Organizational Overview 16

2.5 Background of FSIBL 16

2.6 At a glance of FSIBL 17

2.7 Vision of FSIBL 18

2.8 Mission of FSIBLs 18

2.9 FSIBL Objectives 18

Chapter –Two 2.10 Corporate value of the bank 18

2.11 Organizational structure of FSIBL. 19

2.12 Management profile 20-22

2.13 Board of directors 23

2.14 Shariah Board 24

2.15 Shariah Auditing 24

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 2.16 Product & services 24

2.17 FSIBL foundation & CSR activities 25

2.18 Branch Information of FSIBL 25

2.19 Two Years Financial Performance at a Glance 26

METHODOLOGY PAGE
CHAPTER
Chapter -Three Methodology And Data 27
Information Required 28
Analysis Data 29

CHAPTER GENERAL BANKING OF FSIBL 30-49

4.1 General Banking of FSIBL, Pabna Branch, Pabna. 30

Chapter- Four 4.2 Account opening section 30

4.2.1 A/C Opening Eligibility 30

4.2.2 General requirements for opening a/c 31

4.2.3 Procedure for opening an Account 32

4.4 Deposit section 33

4.4.1 Various types of deposit Account 33

4.5.1 Mudarabah Demand Deposit 33

4.5.2 Mudarabah Term Deposit Receipt (MTDR) 35

4.5.3 Mudarabah Double Deposit Scheme(MDDS) 35

4.5.4 Mudarabah Monthly Saving Scheme (MMDS) 36

4.5.5 Mudarabah Hajj scheme 37

4.6 Profit rate paid on deposit 38

4.7 Total deposit of Pabna Branch, Pabna. 39

Chapter- Four
4.8 Closing of an account 40

4.9 Cash Section 40

4.10 Clearing & Collection Section 41

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 4.10.1 Clearing House 41

4.10.2 Types of clearing 41

4.10.3 Procedure for clearing cheque 42

4.10.4 Bills collection(OBC) 43

4.10.5 Procedure for OBC 43

4.10.6 Charges of OBC 43

4.10.7 Inwards Bills for Collections (IBC) 44

4.10.8 Procedure of IBC 44

4.11 Remittance Section 44

4.11.1 Local Remittance Section 44

4.11.2 Issue of Duplicate Draft 45

4.11.3. Cancellation of Local Draft 45

4.11.4. Foreign Remittance Section 46

4.12 Accounts Section 46

4.13 Automation of FSIBL& online banking 46

4.13.1 What is online banking 47

4.13.2 Features of online banking 47

4.13.3 Online Banking Services in Bangladesh 47

4.13.4 Online Banking system, Pabna Branch, Pabna. 47

4.13.5 SMS Banking 48

CHAPTER ANALYSIS AND INTERPRETATION PAGE

Chapter 5 Analysis 49
Comparative Analysis 50-54

CHAPTER CONCLUSION PAGE

Chapter-Six Conclusion 55
Ending Summary 55

Refference 56

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 CHAPTER 1

INTRODUCTION:

1.1 INTRODUCTION

Internship Report is a process by which students learn to perform the work practically in the
related field. This is a way through which a person or a trainee can gather experience about the
related subject practically and be able to apply his/her theoretical knowledge in the field of real
life action. According to Mr. Green, "Standard methods taken for searching knowledge are meant
Internship Report". So Project Report is the practical training in any business unit to understand
the application of theoretical knowledge in practical field.

Banking is one the most competitive industry in Bangladesh that has seen a huge amount of
growth during the last decade. A large number of new banks have made their places in the
industry and yet there are more to register in the list. In such a highly competitive service industry,
the importance of customer satisfaction cannot be de-emphasized. Improved customer
satisfaction and loyalty gives a bank better base than its rivals and allows it flourish in the
industry. Bank provides different services like payment, credit, savings, insurance, security
brokerage, investment banking, merchant banking, cash management, real estate and community
development. Banks plays a vital role in an economic condition of a country. A nation’s economic
goal can be achieved through bank by controlling over money, credit and interest rate. A countries
economic condition becomes smoother if its banking system is stronger.

First Security Islami Bank Ltd. is one of the most flourishing Banks of Bangladesh with wide growth
opportunities in the industry. First Security Islami Bank Ltd. is engaged in all types of banking
services within the stipulations laid down by Bank Companies Act 1991 and directives as received
from Bangladesh Bank from time to time. It has more than 178 branches all over Bangladesh.
Through its huge branches First Security Islami Bank Ltd. is serving strongly in the socio economic
condition in Bangladesh. First Security Islami Bank Ltd. is the leading provider of financial services
worldwide and it is one of the top twenty multinationals currently operating in the world. With its
strong corporate image and identity it can make better position in the minds of customers. This
image has helped First Security Islami Bank Ltd. to grab the personal banking sector of Bangladesh
very rapidly.

Keeping affiliation with the global technological changes, the banking sector of this country has
been undergoing a remarkable change during the last couple of years. Online banking system is
the most luminous example of such change. Online banking system made the banking service easy
for the customer. It has improved the satisfaction of the customers regarding banking services.

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1.2. ORIGIN OF THE REPORT:
This report is the outcome of the 3 months long Internship Report program undertaken with First
Security Islami Bank Ltd., Pabna Branch, Pabna. The preparation and submission of this report is a
fundamental requirement for the fulfillment of the Bachelor of Business Administration (BBA)
course curriculum of Department of Business administration, Pabna University of Science and
Technology. The primary goal of the Internship Report prospectus is to provide on the job
coverage to the student and an opportunity for translation of theoretical conceptions in real life
situation.

1.3.STATEMENT OF THE PROBLEM:

Banks deal with client’s money to run its business properly. So Banks have responsibility to
provide proper service to its customers. Customers want more qualitative services from the bank
at minimum charge. But bank also wants to provide qualitative service to the customers at lowest
possible cost without hampering to earning profit for their business organization. It is a
controversial problem to earn expected profit and to provide evaluative services to more
customers. Because banks need expected/ desired number of customers to earn expected profit.
But if they (Bank) do not render qualitative services then the customers will cease to go to that
bank and their number of customers will decrease. So customer service management is a problem
and the bank has to trade off between service and optimum profit.

1.4. OBJECTIVES OF THE STUDY:

The primary objective of this report is to comply with the requirement of my course. But the
objective behind this study is something broader. The principal intent of this report is to analyze
the “General Banking of First Security Islami Bank Ltd., Pabna Branch, Pabna”. In addition the
study seeks to achieve the following objectives:
 To get an idea about the history of FSIBL and nature of operation.

 To have exposure to the functions of general banking section.

 To have an idea about various investment modes and their trend overtime.

 Recommendation & Conclusion.

1.5. METHODOLOGY AND DATA:

To meet the objectives of the study, I realized that a single method would not be
effective. Informal & oral discussion with the bank officials, direct observation & printed
papers of the annual Bank report were found useful. Internship Report prepared by previous
interns of this bank are also used for collecting data. So Data regarding the completion of this research
will be collected from various secondary sources. Such as:

 Face to face conversation with the Executives and staff of this bank.
 Personal Observation while working in different desk.
 Informal conversation with the valued clients of the Bank.
 Website of Different banks and Institutions.

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  Different files and document of the bank.

 Annual report of 2018 ,2019,2020,2021 FSIBL.

 Relevant various article or journals.
So the report relies primarily on an analytical judgment and practical knowledge. After collecting
all the data, different graphs have been used for analyzing the data.

1.6. LIMITATION OF THE STUDY:

There are some limitations of the report study. In preparing the report I faced some problems,
which are as follows:

 The specified time period was very limited to conduct the study.

 It was very difficult to collect the information from various employees for their job
restrictions.

 Due to the limitation of the information some assumptions are made so there may be
some personal mistakes in this report.

 To complete Internship Report program, a lot of financial support is required but it is

difficult to get sufficient support.

Although there are a lot of limitations, I have tried to put my best effort as far as possible to
prepare the report.

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 CHAPTER 2
ABOUT FIRST SECURITY ISLAMI BANK LTD.

2.1. INTRODUCTION:
This chapter discusses the overview of the FSIBL. Which gives us a better understanding regarding
modern banking. After all that deals with the organizational overview which includes the history,
vision, and mission. A bank is a financial institution whose main objective is the mobilization of
fund from the surplus unit to deficit unit. In the process of acceptance of deposits and provision of
loan, Bank creates money. This characteristics feature sets bank apart from other financial
institutions. A bank is an economic institution whose main objective is to earn profit through
exchange of money and credit instrument.

2.2. What is Islamic Banking?

Islamic banking has been defined in a number of ways. The definition of Islamic bank, as approved
by the General Secretariat of the OIC, is stated in the following manner “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”. It appears from the above definitions that Islamic banking is systems of financial
intermediation that avoids receipt and payment of interest in its objectives of an Islamic economy.
Alternatively, this is a banking system whose operation is based on Islamic principles of
transactions of which profit and loss sharing (PLS) is a major feature, ensuring justice and equity in
the economy. That is why Islamic banks are often known as PLS-banks.

2.3. FSIBL IN BANGLADESH (Shariah Based Islami Bank):

Banking system occupies an important place in a nation’s economy. Banking institution is
indispensable in a modern society and it plays a vital role in the economic development of a
country. Against the background of liberalization of economic policies in Bangladesh, First Security
Islami Bank Ltd. emerged as a new Shariah based Islamic bank to provide efficient banking
services with a view to improving the socio-economic development of the country. The Bank
provides a broad range of financial services to its customers and corporate clients. The Board of
Directors consists of eminent personalities from the realm of commerce and industries of the
country.

2.4. ORGANISZTIONAL OVERVIEW:

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First Security Islami Bank Ltd. emerged as a new commercial bank to provide efficient banking
services and to contribute socio-economic development of the country. The Bank commenced its
operation on 25thSeptember, 1999.The Bank provides a broad range of financial services to its
customers and corporate clients. The Board of Directors consists of eminent personalities from
the realm of commerce and industries of the country. First Security Islami Bank Limited is a
scheduled private commercial Bank established under the Bank Company Act-1991 and the bank
received the Certificate of Incorporation#C-37884(2164)/99 under the Company Act of 1994.
From then within a short time FSIBL established itself in a strong position in the economy of the
country. It has earned significant reputation in the country’s Banking sector as Bank and created a
wide image in the eye of the people.

2.5. BACKGROUND OF FSIBL:

First Security Islami Bank Ltd. was established in 1999 under the leadership of Late Mr. Shahjahan
Kabir, founder chairman who had a long dream of floating a commercial bank, which would
contribute to the socio-economic development of our country. He had a long experience as a good
banker. A group of highly qualified and successful entrepreneurs joined their hands with the
founder chairman to materialize his dream. Indeed, all of them proved themselves in their
respective business as most successful star with their endeavor, intelligence, hard working and
talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder became the honorable
chairman after the demise of the honorable founder chairman. This bank starts functioning from
25th September 1999 with Mr. Alamgir Kabir, FCA as the advisor and Mr. Mohammad Lakiotullah
as the Managing Director. Both of them have long experience in the financial sector of our
country. By their pragmatic decision and management directives in the operational activities, this
bank has earned a secured and distinctive position in the banking industry in terms of
performance, growth, and excellent management. The bank has migrated all of its conventional
banking operation into Shariah based Islamic banking since July 2009. It has 178 branches all over
Bangladesh. Through its huge branches First Security Islami Bank Ltd. is serving strongly in the
socio economic condition in Bangladesh.

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2.6. AT A GLANCE OF FSIBL: Corporate Information of First Security Islami Bank Ltd.:

FSIBL Corporate Profile

Name of the Company First Security Islami Bank Ltd.
Chairman Mr. Mohammad Saiful Alam
Vice Chairman Mr. Alhaj Mohammad Abdul Maleque
Managing Director Mr. Syed Waseque Md. Ali
Company Secretary Mr. Oli Kamal FCS
Legal Status Public Limited Company
Date of Incorporation August 29, 1999
Date of
Commencement of August 29, 1999
Business
Date of getting license
September 22, 1999
from Bangladesh Bank
Date of Opening of
October 25, 1999
First Branch
Corporate Head Office House- SW (I) 1/A, Road-8, Gulshan-1, Dhaka-1212, Bangladesh.
Registered Office 23, Dilkusha, Dhaka-1000, Bangladesh
Line of Business Banking
Authorized Capital Tk.30,000 Million
Paid up Capital Tk.9961.98 Million
Date of consent for
04 June 2008
IPO
Phone 88-02-9888446 (Hunting), 8402613-8402625 (ICT Division).
Fax 880-02-9891915
E-mail bcs@fsiblbd.com , info@fsiblbd.com
SWIFT Code FSEBBDDH
Shafiq Basak & Co, Chartered Accountants, Shatabdi Centre (6th
Floor), 292, Inner Circular Road, Fakirapool, Motijheel, Dhaka.
Auditors
Phone: 02- 7192098, Tel/ Fax: 02- 7194870, E-mail:
shafiq_basak@yahoo.com
The Law Counsel, Barrister & Advocates, City Heart (7th Floor),
Legal Advisor Suit No. 8/8, 67, Naya Paltan, Dhaka-1000. Phone: 9349647-8,
Fax: 9349866, 9567029, E-mail: l.counsel@bdonline.com.
K.M. Hasan FCA, K.M. Hasan & Co. Chartered Accountants, Dhaka
Office
Tax Consultant Home Tower Apartment (8 th & 9 th Floor), 87, New Eskaton
Road , Dhaka – 1000, Phone: 9351457,9351564, Fax: 9345792-
112.

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2.7. Vision of First Security Islami Bank Ltd.:
Vision of FSIBL is stated in the following:

 “Would make finest corporate citizen” that means to be the finest bank in the
banking arena of Bangladesh under the Shariah guidelines.

2.8. Mission of First Security Islami Bank Ltd.:

The Bank’s mission gives emphasis to:

 To maintain Corporate and business ethics.

 To become a trusted repository of clients' money and their financial advisor.

 To make our stock superior and rewarding to the clients/shareholders.

 To display team spirit and professionalism.

 To have a Sound Capital Base.

 To provide high quality financial services in export and import trade.

 To provide excellent quality Clients service.

2.9. OBJECTIVES OF THE BANK:

 To gain a larger market share.

 To earn and maintain CAMEL rating Strong.
 To remain one of the best banks in Bangladesh in terms of profitability and assets
quality.
 To ensure customer satisfaction.
 To introduce fully automated systems through integration of information technology.
 To ensure or adequate rate of return on investment.
 To ensure optimum utilization of all available resources.

2.10. CORPORATE VALUE OF THE BANK:

Corporate value for different interest groups of the bank includes:

 For the customers: Providing with caring services by being innovative in the development of
new banking products and services.

 For the Employees: Respecting worth and dignity of individual employees devoting their
energies for the progress of the bank.

 For the Shareholders: Maximizing wealth of the Bank and owners’ equity.

 For the Community: Strengthening the corporate values and taking environment and social
risks and reward into account.

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2.11. ORGANIZATIONAL STRUCTURE OF FIRST SECURITY ISLAMI BANK LTD.:
CHAIRMAN

BOARD OF DIRECTORS

MANAGING DIRECTOR

DEPUTY MANAGING DIRECTOR

SENIOR EXECUTIVE VICE PRESIDENT

ENTPRESIDENT
EXECUTIVE VICE PRESIDENT

SENIOR VICE PRESIDENT

VICE PRESIDENT

FIRST ASSISTANT VICE PRESIDENT

ASSISTANT VICE PRESIDENT

FIRST ASSISTANT VICE PRESIDENT

SENIOR PRINCIPAL OFFICER

PRINCIPAL OFFICER

SENIOR OFFICER

OFFICER

JUNIOR OFFICER

ASSISTANT OFFICER

TRAINEE ASSISTANT OFFICER

Figure: Hierarchical Structure of First Security Islami Bank Ltd.

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2.12. MANAGEMENT PROFILE:
Top Management

Mr. Syed Waseque Md. Ali,

Managing Director

A dynamic leader and a visionary banker, Mr. Syed Waseque Md Ali has been appointed
as the Managing Director of First Security Islami Bank Limited. Prior to this appointment,
he was working as Managing Director (Current Charge) of the Bank. Mr. Ali, a seasoned
banker having more than 32 years of extensive and versatile banking experience with
diversified, welfare and next generation banking business, began his banking career with
IFIC Bank Ltd. in 1983 as Officer and stayed there till 1996. Afterwards, he served Dutch-
Bangla Bank Ltd. for about a decade till 2008 and in the same year he joined First Security
Islami Bank Ltd. as Senior Executive Vice President and was promoted to Deputy
Managing Director in October 2011. Mr. Ali has obtained his Bachelor Degree in
commerce and an MBA.

During his long Banking Career, he has undergone various training and participated in
many multifaceted professional and international seminars, workshops & symposiums on
Banking and Finance both at home and abroad. Mr. Ali was President of Rotary Club of
Dhaka North and presently serving as Convener of Gulshan Society Zone-6, Dhaka, also a
life member of Gulshan Society, Gulshan Youth Club, Gulshan Health Club, Gulshan
Central (Azad) Mosque, Dhaka and associated with a number of institutions and
communities.

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 Md. Abdul Aziz,
Additional Managing Director

Mr. Abdul Aziz has been promoted as Deputy Managing Director of First Security Islami
Bank Ltd. Prior to promote as Deputy Managing Director he was serving as Senior
Executive Vice President (SEVP) of the Bank. Mr. Aziz has B.Sc (Honors) and M.Sc in
Botany.

Mr. Abdul Aziz joined First Security Islami Bank Ltd. as Senior Assistant Vice President
(SAVP) in 1999. He started his Banking Career at National Bank Ltd. in 1983. He has got
nearly 32 years of banking experience and developed a wide range of expertise in
banking. Mr. Abdul Aziz served as Head of Human Resources Division, Head Office &
Manager at Dilkusha Branch, Dhanmondi Branch of First Security Islami Bank Ltd. in his
wide banking Career.

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 Mr. Md. Mustafa Khair,
Deputy Managing Director

Mr. Md. Mustafa Khair has been promoted as Deputy Managing Director of First Security
Islami Bank Ltd. Prior to the promotion as Deputy Managing Director he was working as
Senior Executive Vice President (SEVP) of the Bank. Mr. Md. Mustafa Khair having a B.Com
(Honours) in Finance and M.Com in Banking from University of Dhaka joined First Security
Islami Bank Ltd. as Senior Vice President (SVP) in 2006. He started his Banking Career at
Bangladesh Shilpa Rin Sangstha (Presently Bangladesh Development Bank Limited) in
March 1989. He also worked International Finance Investment and Commerce Bank
Limited (IFIC Bank) in November 1989. Then he joined Dutch Bangla Bank Limited in
March 1998 as Assistant Vice President. He has got nearly 26 years of banking experience
and developed a wide range of expertise in banking. Mr. Md. Mustafa Khair served as
Manager of Dhanmondi Branch, Banani Branch, Gulshan Branch and as the Head of
Marketing & Development Division, Head Office of First Security Islami Bank Ltd. in his
wide banking Career.

During his elongated Banking Career, he has undergone various training and participated
in seminars, workshops & symposiums on Banking and Finance both at home and abroad.

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2.13. BOARD OF DIRECTORS:

Name of Directors

Chairman, Mr. Mohammed Saiful Alam

Vice Chairman, Mr. Md. Abdul Maleque

Director, Farzana Parvin

Director, Rahima Begum

Director, Mrs. Atikur Nessa

Director, Mr. Wahidul Alam Seth

Independent Director, Mr. Mohammad Ishaque

Independent Director, Mr. Ahmed Muktadir Arif

Independent Director, Mr. Momtaz Uddin Ahmed

Nominated Director, Mr. Khandkar Iftekhar Ahmed

Nominated Director, Mrs. Badrun Nessa

Nominated Director, Mr. Jamal Mostafa Chowdhury

Nominated Director, Mr. Mollah Fazle Akbar Lt. General(Retired)

Managing Director, Syed Waseque Md Ali

2.14. SHARIAH BOARD

The Board of directors has formed a Sharia Supervisory Board for the Bank. Their duty is to
monitor the entire Bank’s transactional procedures, & assuring its Sharia compliancy. This Board
consists of the following members headed by its Chairman. The tasks of the Sharia supervisor in
summary is replying to queries of the Bank’s administration, staff members, shareholders,
depositors, & clients, follow up with the Sharia auditors and provide them with guidance,
submitting reports & remarks to the Fatwa & Sharia Supervision Board and the administration,
participating in the Bank’s training programs, participating in the supervision over the AlIqtisad
AlIslami magazine, & handling the duty of being the General Secretary of the Board.

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2.15. SHARIAH AUDITING

This is the civil supervisory aspect that shapes the Bank’s main feature. Its existence is part of the
Sharia Supervision procedures. One of its main tasks is to check the Sharia compliancy in the
Bank’s transactional procedures in accordance to the Fatwas issued in that regard, under the
guidance of the Sharia Supervisor. The Sharia auditor is assigned the task of revising the Bank’s
transactional procedures throughout the year to check the extent to which the staff members and
the different departments have abided by the regulations, advices, and Fatwas issued by the
Fatwa & Sharia Supervision Board, forums, & banking conferences.

Members of Shariah Council:

Professor Dr. Mohammad Gias Uddin

Talukder Chairman

Mufti Sayeed Ahmed Vice Chairman

Moulana Abdus Shahed Naseem Member

Moulana Azharul Islam Member

Moulana Md. Samaun Ali Member secretary

2.16. PRODUCT & SERVICES:

 Deposit Products.

 Investment Products.

 Plastic Card Products.

 Remittance Service.

 L/C (Import & Export) Products.

 Other Services.

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2.17. FSIBL FOUNDATION AND CSR ACTIVITIES:
At least 2% of our annual profit of every year is put aside for the foundation to conduct Corporate
Social Responsibilities (CSR) activities. The mainstream CSR activities that are carried out through
this foundation is:

 Healthcare service.

 Scholarship program for brilliant poor student.

 Education Promotion Scheme (Interest free loan).

 Helping people affected by natural calamities.

 Helping people in slum areas.

 Beautification of Dhaka city.

 Donation to educational institutions to setup computer lab.

2.18. BRANCH INFORMATION:

FSIBL has 197 Branches in Bangladesh.

SL NO. NAME OF DIVISION TOTAL BRANCH

1. DHAKA 54
2. KHULNA 28
3. RAJSHAHI 20
4. KOMILLA 20
5. CHITTAGONG 51
6. SYLHET 11
7. BARISAL 13
Table: Total Branches of FSIBL in Bangladesh is 197 up to June 2022

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2.19. Two Years Financial Performance at a Glance:s
Particulars 31.12.2020 31.12.2021
Paid-up Capital 7,840,993,400 7,128,175,820
Total Capital Fund 20,831,071,606 19,642,357,093
Capital Surplus / (deficit) 362,482,769 3,281,445,923
Total Assets 371,335,783,344 337,459,404,268
Total Deposits 320,021,798,490 299,120,844,464
Total Investments 311,684,988,928 273,593,618,710
Total Contingent Liabilities and Commitments 47,097,223,699 41,263,419,860
Investment Deposit Ratio (in %) 93.15% 87.78%
Percentage of Classified Investment against total
3.34% 3.07%
Investment(in %)
Profit after tax & provision 1,586,398,673 1,309,146,282
Amount of Classified Investments during the year 10,421,400,286 8,397,744,459
Provision kept against Classified Investments 5,930,586,195 4,001,767,394
Provision Surplus / (deficit) 1,000,000 -
Cost of Fund 9.66% 8.62%
Profit Earning Assets 342,354,135,383 303,742,528,273
Non-profit Earning Assets 28,981,647,961 33,716,875,995
Return on Investment in Shares & securities (ROI) (in %) 2.51% 0.88%
Return on Assets (ROA) (in %) 0.45% 0.41%
Income from Investment in Shares and Securities 401,018,728 135,607,034
Earning Per Share (Tk.) 2.02 1.67
Net Income Per Share (Tk) 2.02 1.67
Price Earning Ratio (Times) 5.39 8.33
Here is the Graphical Representation of the Financial Highlights
Table: Two years financial performance.

*********************

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 CHAPTER 3
METHODOLOGY

3.1 Methodology and data

To meet the objectives of the study, I realized that a single method would not be
effective. Informal & oral discussion with the bank officials, direct observation &
printed papers of the annual Bank report were found useful. Internship Report
prepared by previous interns of this bank are also used for collecting data.

The study requires a systematic procedure from selection of the topic to final preparation.
To perform the study, the data sources are identified and collected, these are classified,
analyzed, interpreted and presented in a systematic manner and key points have been
found out. The overall processes of methodology are given below researcher both
primary and secondary data to complete researcher report.

The methodology indicates the selection of sample banks, sources of data and the
method of data analysis followed by indicating the limitation of the study. Data has been
collected from both primary and secondary sources. Informal meeting with the senior
officer was also helpful. In order to make the report more meaningful and presentable,
two sources of data and information have been used:

Such as:

 Face to face conversation with the Executives and staff of this bank.
 Personal Observation while working in different desk.
 Informal conversation with the valued clients of the Bank.
 Website of Different banks and Institutions.
 Different files and document of the bank.

 Annual report of 2018 ,2019,2020,2021 FSIBL.

 Relevant various article or journals.
So the report relies primarily on an analytical judgment and practical knowledge. After
collecting all the data, different graphs have been used for analyzing the data.

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3.2.Data/Information required:

Preparing a meaningful report of any organization required information and data regarding the
performance, background, functions, and operations of the organization. So I tried to collect the
maximum amount of information for the report

Source of Data:

Most of the data included in the report collected from two types of sources.

Primary Sources

Secondary Sources

Primary sources:

Primary sources means the sources of data which were never is used in anywhere and
which data are presented first time.

Secondary sources:

Secondary sources mean the sources of data which were already existed and used. Many
journals, books and data from websites are used here as a source of secondary data.

Collection of Data:

The important amount of data I collected from the Head Office of the bank and from their
Annual Report and IPO Prospectus of last year. Except those I try to collect some
information regarding banking and banking industry from various books and websites.

 Data Collection:
The study has completed by the information collected from both primary & secondary
data.

 Collection of Primary data:

The primary data has been collected by circulating unstructured questioners.

 Secondary data:
The secondary data & information was gathered from the following sources:

1. Annual report

2. Periodic Publication of the Bank.

3. Bangladesh Accounting Standards.

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4. General Banking Manuals.

5. Website of First Security Islami Bank Limited.

 Analysis of Data:
Some techniques of Perfomance Evaluation:
1.Trend Analysis
2. Ratio Analysis

 RETURN ON ASSETS RATIO (ROA)

Net income
Return On Assest=
Total Assets

 Net Operating Income= Total Revenue – Cost of Good Sold-

Operating Expense

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 CHAPTER 4
GENERAL BANKING

4.1. GENERAL BANKING SERVICES OF FSIBL, PABNA BRANCH, PABNA:

The general banking department does the most important and basic works of the bank. All other
departments are linked with this department. It also plays a vital role in deposit mobilization of
the branch. This bank provides different types of accounts, locker facilities and special types of
saving scheme under general banking. At first I have been placed in the General Banking
Department. General Banking department performs the majority functions of a bank. It is the core
department of the Bank. Banking operations start with general banking. General Banking section
provides day-to-day services to the customers. This is the section where various services are
provided to the account holders for example, cash receipt and payment, receipt of check for
collection, remittance etc. For proper functioning and excellent customer service this department
is divided into various sections namely as follows.

 Account Opening Section

 Deposit Section
 Cash Section
 Clearing and Collection Section
 Remittance Section
 Accounts Section
4.2. ACCOUNT OPENING SECTION:
To establish a Banker and customer relationship, account opening is the first step. Opening of an
account binds the Banker and customer into contractual relationship. But selection of customer
for opening an account is very crucial for a Bank. Indeed, fraud and forgery of all kinds start by
opening account. So, the Bank takes extremely cautious measure in its selection of customers.
Banks mobilize deposits through opening different types of accounts.
Types of Account:

1. Demand Deposit Account:

 Al-Wadiah Current Account.
 Mudaraba Savings Deposit Account(MSD)
 Mudaraba Short Notice Deposit Account(MSND)

2. Time Deposit Account:

 Mudarabah Term Deposit Receipt Account 01 Month.
 Mudarabah Term Deposit Receipt Account 02 Months.
 Mudarabah Term Deposit Receipt Account 03 Months.
 Mudarabah Term Deposit Receipt Account 06 Months.
 Mudarabah Term Deposit Receipt Account 12 Months.

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  Mudarabah Term Deposit Receipt Account 24 Months.
 Mudarabah Term Deposit Receipt Account 36 Months.

3. Scheme Deposit Account:

. Mudarabah Monthly Deposit scheme 01 Year.
. Mudarabah Monthly Deposit scheme 03 Years.
. Mudarabah Monthly Deposit scheme 05 Years.
. Mudarabah Monthly Deposit scheme 08 Years.
. Mudarabah Monthly Deposit scheme 10 Years.
. Mudarabah Monthly Deposit scheme 12 Years.
. Mudarabah Monthly Deposit scheme 15 Years.
. Mudarabah Monthly Deposit scheme 20 Years.
. Mudarabah Double Deposit scheme 6.50 Years.

4.2.1. A/C Opening Eligibility:

 Persons over 18 years (except some restricted persons)
 Commissioner Certificate/Id. Card/ Pass Port Copy/ Voter Id. Card
 Two Copies A/C opening person’s Photo
 Nominee’s Photo one copy (Major/Minor)
 Introducer
 Valid Signature
 KYC (Know Your Customer)
 TP (Transaction Profile)
 Money Laundering Paper’s Signature
 TIN Certificate (If income above 5 Lac)
One who want to open an account, he has to fill up an account opening form. This form is a legal
contract between the bank and prospective customers such as individual, joint, proprietorship,
partnership, private limited company, public limited company, associations, clubs, societies, trusts
etc. can open their various types of accounts as their requirements which are mentioned below:

4.2.2. GENERAL REQUIREMENTS:

Individual Account (CD/SB):
 If individual wants to open an account than introduces must be needed to open
current account and savings account, who has a current account or savings account in
the bank.
 Individual must be submitted his/her certificate of Word Commissioner or the
photocopy of the Passport.
 Photograph of the nominee.
 Signature of the nominee.

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Joint Account
This account can be opened by 2 persons or more than 2 persons and each person should fulfill the
requirements of individual account. The holders should mention the mode of operation. Here the
account holders must declare how they operate their account that means “how many signatures will
be needed for a check clearing.

Sole proprietorship Account:

 Two copy of color photograph attested by the introducer.
 Up to date trade license & Rubber stamp.
 Signature of nominee in the nominee declaration form.
Partnership Account
Partnership account is as like as joint account it needs-
 Must be submitted a copy of partnership deed.
 Photocopy of Word Commissioner Certificate or passport.
 Up to date trade license & Rubber stamp
 The partners also fill up the partnership letter of FSIBL with their name and signature.

Public/Private Limited Company

 Board of Resolution.
 Certificate of Incorporation.
 Certificate of Commencement (in case of public limited company).
 Certificate copy of memorandum of association & articles of association attested by
the Chairman or Managing Director.
 Photocopy of Word Commissioner Certificate or passport.
 Up to date trade license& Rubber stamp.
 List of Directors with designation & signature.
 Certificate of registration (in case of insurance companies) obtained from Department
of insurance republic of Bangladesh Government.
 TIN Certificate.

4.2.3. Procedure for opening an Account:

To open an account a customer must accomplish the following formalities:
 Account opening form to be filled in and signed by the applicant
 Submit Application Form provided by the Bank.
 Introduction by an Account Holder of the Bank with signature and account number
or any person acceptable to the bank.
 One Copy passport size photograph of nominee attested by the account holder(s).
 Putting Specimen Signature in the Specimen Card Mandate.
 Initial Deposit is deposited.
After completing above formalities by the customer, ledger keeper will thoroughly verify the
Application Form submitted and the specimen signature is attested by the concerned empowered

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officer. Besides, the ledger keeper will also examine whether there is the signature of the
manager or not on the Form. Then he/she will open an account in the right place of the ledger or
computer.

4.4. DEPOSIT SECTION:

A bank is essentially an intermediary of short-term funds. The deposits that are accepted by FSIBL
like other banks may be classified in to—

4.4.1 VARIOUS TYPES OF DEPOSIT ACCOUNT:

Deposit account of First Security Islami Bank is 03 Types:

1. Demand Deposit Account.

2. Time Deposit Account.

3. Scheme Deposit account.

4.5.1. MUDARABA DEMAND DEPOSIT:

 Al-Wadiah Current Account.
 Mudarabah Savings Deposit Account(MSD)
 Mudarabah Short Notice Deposit Account(MSND)

 Al-Wadiah Current Account.

Al-Wadiah Current Account follows the Principle of Islami Shariah wherein the bank is deemed as
a keeper and trustee of funds as Al-Amana (on Trust).

Main Features:
1. Halal way or without Riba (interest or usury) transaction.

2. Unlimited deposit or withdrawal.

3. No profit will be given.

Terms and Condition:

1. Bank may use the fund at its own discretion with prior permission of the account holder and
without any risk to the account holder.

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2. Customer may be withdraw the entire (or part of) fund without any notice to the bank.

 Mudarabah Savings Deposit Account(MSD)

Mudarabah savings account is opened under the Mudarabah principal of Islami Shariah. Under the
above principal the clients is the Shaheb-Al Mal and the Bank is Mudarib.

Main Features:
1. 3.50% provisional rate of profit.

2. Minimum initial deposit is Tk.500.00.

3. Half-Yearly account statement.

4. Debit card Facility with limited withdrawal.

5. Free ATM Cash withdrawal from all ATM of FSIBL.

6. SMS Banking for statement/Balance checking.

7. Cheque book facility.

8. Profit will be calculated on monthly basis.

9. Fund transfer facility.

10. Cloud & Internet Banking Facility.

 Mudarabah Short Notice Deposit Account(MSND)

Mudarabah savings account is opened under the Mudarabah principal of Islami Shariah. Under the
above principal the clients is the Shaheb-Al Mal and the Bank is Mudarib. Mainly Organization
operate this types account.

Main Features:
1. 3.00% provisional rate of profit.

2. Minimum initial deposit is Tk.1000.00.

3. Half-Yearly account statement.

4. Debit card Facility with limited withdrawal.

5. Free ATM Cash withdrawal from all ATM of FSIBL.

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6. SMS Banking for statement/Balance checking.

7. Cheque book facility.

8. Profit will be calculated on monthly basis.

9. Fund transfer facility.

Terms and conditions:

1. Account will be operated as per Mudarabah principals.
2. At least 65% of investment income will be distributed among the Mudarabah depositors as
per weightage allocated for each accounts.
3. Mudarabah Savings Deposit will bear 0.75 weightage.

4.5.2 MUDARABA TERM DEPOSIT RECEIPT(MTDR):

The Bank accepts Mudarabah Term Deposit as per Mudarabah principle of Shariah. Any adult
person (individually or jointly) having sound mind or any institution/organization can open MTDR
Account with any branch of the Bank by depositing at least Tk. 5,000 (Five Thousand) and above
but multiple of Tk. 100 (One Hundred). No transaction facilities are allowed in this type of deposit
and hence no cheque book is issued. Investment against lien of such receipt may be allowed up to
90% of deposited amount. One or more account can be opened in the same name at the same
branch of the bank. At least 65% of investment income will be distributed to the depositors.
 Mudarabah Term Deposit Receipt Account 01 Month.
 Mudarabah Term Deposit Receipt Account 02 Months.
 Mudarabah Term Deposit Receipt Account 03 Months.
 Mudarabah Term Deposit Receipt Account 06 Months.
 Mudarabah Term Deposit Receipt Account 12 Months.
 Mudarabah Term Deposit Receipt Account 24 Months.
 Mudarabah Term Deposit Receipt Account 36 Months.
Main Features of MTDR
1. Any adult person (individually or jointly) having sound mind or any institution/organization can
open MTDR Account with any branch of the Bank.
2. Minimum depositing amount Tk.5000.00 (thousand) and above but multiple of Tk.100.00 (one
hundred)
3. One or more account can be opened in the same name at the same branch of the bank
4. Profit will be calculated on daily basis on provisional rate of profit and also applied on due date
of maturity
Terms and Conditions:
1. No profit shall be allowed for premature encashment within 01(one) month
2. If the account is encashed after completion of any tenure but before maturity, depositors will
be entitled to receive the benefit at the provisional rate of profit of Mudarabah Savings Account.

4.5.3 MUDARABA DOUBLE DEPOSIT RECEIPT(MDDR):

Any amount to be near about double after maturity present term is 6.50
(Six years Six Months).

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 4.5.4. MUDARABA MONTHLY DEPOSIT SCHEME (MMDS)
It is a monthly savings scheme securing your future with ease. A small savings of today will provide
the depositor comfort tomorrow.
Savings Period of Mudarabah Monthly Deposit Scheme:
. Mudarabah Monthly Deposit scheme 01 Year.
. Mudarabah Monthly Deposit scheme 03 Years.
. Mudarabah Monthly Deposit scheme 05 Years.
. Mudarabah Monthly Deposit scheme 08 Years.
. Mudarabah Monthly Deposit scheme 10 Years.
. Mudarabah Monthly Deposit scheme 12 Years.
. Mudarabah Monthly Deposit scheme 15 Years.
. Mudarabah Monthly Deposit scheme 20 Years.

Highlights of the Scheme:

• Any amount can be deposited in multiples of Tk. 5,00.00. Some examples are given in the
table below.
Deposited Amount Amount payable approximately after maturity before Tax

3 Years 5 Years 10 years 15 years

500 20618 37807 97061 187704

1000 41228 75613 194122 3758407

1500.00 61843 113420 291183 Not eligible

2500.00 103071 189034 485305 938518

5,000.00 206142 378067 970610 1877037

10,000.00 412285 756134 1941220 3754073

20,000.00 824569 1512268 3862440 7508146

30,000.00 1236854 2268402 5823659 11262219

Table: Amount payable after maturity in Mudarabah Monthly Deposit Scheme

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Main Features, Terms and Conditions:

1. The savings period is for 5, 8, 10 ,12, 15 & 20 years.

2. Monthly installment is Tk. 500/-, 1000/-,1500/-, 2500/-,5000/-,10000/-,20000/-, 25000/- &

30,000/-

3. Not less than 65% of investment income shall be distributed among the Murabaha Depositors
as per weightage.

4. Bank reserves the right to change the weightage of deposit & percentage of distribution of
Investment Income.
5. The savings amount is to be deposited within the 30th of every month. In case of holidays the
deposit amount is to be made on the following day.
6. The deposits may also be made in advance.

7. If the depositor fails to make the monthly installment in time, then Tk.25 or Tk.50 amount to be
added with the following month(s) installment.

4.5.5. MUDARABA HAJJ SCHEME:

It is a monthly savings scheme ensuring your future desire to perform the Hajj. A small
savings of today will provide the opportunity to perform the Hajj.

Terms and conditions of the scheme:

1. An adult person having sound mind can open one account only, in his/her singly name with any
of the branches of the bank.

2. The tenure of Mudarabah Hajj Scheme will be 1 year to 20 years. The Clint may choose any
tenure and deposit the prescribed monthly installment to perform Hajj in the predetermined year.

3. The monthly installment amount prescribed in the following table is calculated for different
years considering the Hajj expenses of 2018 for
4. The client will deposit amount as per installment size prescribed for the year in which the client
desires to perform the Hajj.
5. Profit against balance of Mudarabah Hajj Scheme will be credited on daily product basis and it
bears 1.10 profit weightage.
6. There will be 12 installments in a year and according 60 installments for 5 years, 120
installment for 10 years and 240 installment for 20 years.

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Hajj Scheme provisional Rate are given below:
Year Monthly Installment Payable
01 30500.00 379877.00
02 15200.00 391836.00
03 10200.00 408262.00
04 7700.00 425458.00
05 6200.00 443463.00
06 5200.00 462319.00
07 4700.00 505098.00
08 4200.00 534581.00
09 3700.00 549179.00
10 3200.00 547164.00
11 3000.00 585168.00
12 2800.00 618026.00
13 2600.00 645040.00
14 2400.00 665446.00
15 2200.00 678409.00
16 2100.00 717171.00
17 1900.00 715966.00
18 1800.00 746005.00
19 1700.00 772691.00
20 1600.00 795537.00

Table: Amount payable after maturity in Mudarabah Hajj Deposit Scheme.

4.6 PROFIT RATE PAID ON DEPOSIT:

Profit is the price of product. FSIBL’s Profit rate structure is as follows: -
Account Head Profit Rate
(i) Al-Wadiah current Account 0%
(ii) Mudarabah Savings Deposit Account (MSD) 3.50%
(iii) Mudarabah Short Term Deposit Account Less than 10 Crore. More than 10 Crore
(MSTD)
3.00% 4.00%
(iv) Mudaraba Term Deposit Receipt Account Profit Rate
1. For one (1) month 03.50%

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 2. For three (3) month 05.60%

3. For six (6) months 05.60%

4. For one (1) Year 05.60%

Table: Offering Rate of Profit on Different Deposit Accounts

Effective from (2022)

4.7. TOTAL DEPOSIT OF FSIBL IN PABNA BRANCH, PABNA.

Amount in Crore

Name of Accounts Total Number Total deposit Amount

Al-Wadia Current Deposit 531 0.79

Mudaraba Savings Deposit (Staff) 31 0.02

Mudaraba Savings Deposit 1368 2.43

Mudaraba Short Term Deposit 25 0.81

Mudaraba Term Deposit Scheme 50.26

764

Various Scheme Deposit 826 8.78

Total = 3545 63.09

Table: Total Deposit amount of FSIBL, Pabna Branch, Pabna.

Now it is shown by the following graph:

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 Graph-1

This graph shows the total deposit amount of various deposits & schemes in FSIBL, Pabna Branch,
Pabna in 30 June 2022.

4.8. Closing of an account: FSIBL May close any account:

 If the customer is desirous to close the account
 If it finds that the account is inoperative for a long duration.
 If Garnishee Order is issued by the court on bank.
To close the account, the checkbook is to be returned to the bank. It takes all the charges by
debiting the account and the remaining balance is then paid to the customer. Necessary entries
are given to the account closing register and computer.

4.9. CASH SECTION:

Banks, as a financial institution, accept surplus money from the people as deposit and give them
opportunity to withdraw the same by cheque, etc. But among the banking activities, cash
department play an important role. It does the main function of a commercial bank i.e. receiving
the deposit and paying the cash on demand. The functions of a cash department are described
below:

 Cash Payment:
1. Cash payment is made only against cheque
2. This is the unique function of the banking system which is known as “payment on demand”
3. It makes payment only against its printed valid Cheque

 Cash Receipt:
1. It receives deposits from the depositors in form of cash
2. So it is the “mobilization unit” of the banking system

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3. It collects money only its receipts forms.

 Cash packing:
After the banking hour cash is packed according to the denomination. Notes are counted and
packed in bundles and stamped with initial.

4.10. CLEARING & COLLECTION SECTION:

Clearing is a process of collection & payment of instruments (cheques, PO, DD etc.)
through interbank settlement under the leadership of Bangladesh Bank.

4.10.1. Clearing House: Clearing House arrangement has been established for
settlement of payment of different instruments of different banks of City
Corporation/Municipality area branches. Bangladesh Bank generally acts, as organizer of
Clearing House.CH is a place where the representatives of different banks get together to
receive and deliver cheque with other banks. Where there is no branch of Bangladesh
Bank, Sonali bank arrange this function.

4.10.2. Types of Clearing:

Outward Clearing: When the Branches of a Bank receive cheque from its customers
drawn on the other Banks within the local clearing zone for collection through Clearing
House, it is Outward Clearing.

Inward Clearing: When the Banks receive cheque drawn on them from other Banks in the
Clearing House, it is Inward Clearing.

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4.10.3. PROCEDURE FOR CLEARING CHEQUE COLLECTION:
The following procedures are taken for collection:

“Received” seal is stamped on the

cheque
\\

Crossing the cheques are done

“Payees A/C Credited” and

disbursement

Entries are given in the Outward

Clearing Register.

“Clearing” seal is given on cheque

Cheques are sorted bank wise and

entries are given to the computer

Entries are given to the “Clearing House

Register”

eque. Figure: Processing for clearing cheque collection.

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4.10.4. Bills Collection:
In modern banking the mechanism has become complex as far as smooth transaction and safety is
concerned. Customer does pay and receive bill from their counterpart as a result of transaction.
Commercial bank’s duty is to collect bills on behalf of their customer.
Types of Bills for Collection:
 Outward Bills for Collection (OBC).
 Inward Bills for Collection (IBC).

1)Outward Bills for Collection (OBC):

OBC means Outward Bills for Collection .OBC exists with different branches of different banks
outside the local clearinghouse. Normally two types of OBC:

 OBC with different branches of other banks

 OBC with different branches of the same bank

4.10.5. Procedures for Outward Bills for Collection (OBC):

Depositing the cheque along with deposit slip and Put OBC number in the
cheque

Crossing of the cheques are done indicating Principal Branch as collecting

bank& “Crossing seal” on the left corner of the cheque.

Endorsement “ Payees A/C will be credited on realization “ is given

Entries are given in the outward clearing register

Figure: Procedures for Outward Bills for Collection (OBC)

4.10.6. Charges of OBC:

Total amount of DD Percentage (%) Minimum

commission
Up to TK. 25,000.00 .20 TK. 25.00
TK.25,001.00-TK. 1,00,000.00 .20 TK. 75.00
TK.1,00,001.00-TK. 5,00,000.00 .10 TK. 200.00
TK. 5,00,001.00 and above .05 TK. 600.00

Table: Percentage & Commission of OBC

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 4.10.7.Inward bills for collection (IBC):
When the banks collect bills as an agent of the collecting branch, the system is known as IBC. In
this case the bank will work as an agent of the collection bank. The branch receives a forwarding
letter and the bill.

4.10.8. Procedure of IBC:

IBC against OBC: To receive the OBC cheque first we have to give entry in the IBC Register .The
IBC number should put on the forwarding of the OBC with date.

Deposit of OBC amount: OBC cheque amount is put into the “sundry deposit-sundry Creditors
account”, prepare debit & credit voucher of it. If the OBC cheque is honored, send credit advice
(IBCA) with signature & advice number of the concern branch for the OBC amount.

If the OBC cheque is dishonored, the concerned branch is informed about it.

Again place in the clearing house or send the OBC cheque with Return Memo to the issuing branch
according to their information.

4.11. REMITTANCE SECTION:

Carrying cash money is troublesome and risky. That’s why money can be transferred from one
place to another through banking channel. This is called remittance. Remittances of funds are one
of the most important aspects of the Commercial Banks in rendering services to its customers.
This section is divided into 2 parts. Such as:
 Local Remittance Section

 Foreign Remittance Section

4.11.1. Local Remittance Section:

The main instruments used by the FSIBL for transferring money in this section are:

a) Demand Draft (DD): Demand Draft is an order of issuing bank on another branch
of the same bank to pay specified sum of money to payee on demand. Payment is
made from ordered branch. Payee can also be the purchaser. Bank confirm
through checking the ‘Test Code’. Bank charge a commission and telex charge for
it.

HOW DD WORKS:

The following procedures are taken when DD comes :

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 Figure: How DD works.

4.11.2. Issue of Duplicate Draft:

If the LD is reported to be lost or stolen, the issuing branch on receipt of a written request from
the purchaser may issue a duplicate draft.
Before issuing duplicate L.D. the branch should observe the followings-
 At first GD must be done by the purchaser.
 Verify the purchaser’s signature on the request letter from the signature appearing on
the original application form.
 Immediately issue a stop payment instruction to the payable branch under advice of
head office and obtain confirmation of non-payment the L.D. in acquisition.
 After the drawee branch has acknowledged the stop payment order and confirmed that
the local draft in acquisition remains unpaid at their end, the issuing branch should
obtain an Indemnity Bond on stamp paper as per prescribed format from the purchaser
duly signed by him. The branch will thereafter write to head office for their approval to
issue a duplicate draft.
 The head office on receipt of the request from the issuing branch will immediately issue a
caution circular to all the branches regarding the lost of the local draft asking them to
record stop payment.
 The head office will thereafter issue clearance to the issuing branch for issuing for issuing
a duplicate draft in lieu of original reported lost.
 Prescribed duplicate issuance charge is to be recovered for issuing the duplicate draft
and credited to “Income Account”.

4.11.3. Cancellation of Local Draft:

The followings are followed while canceling a L.D:
 The purchaser should submit a written request for cancellation of the L.D. attaching

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 therewith the original L.D.
 The signature of the purchaser will have to be verified from the original application form.
 Manager’s prior permission is to be obtained before refunding the amount of draft.
 Cancellation charge is to be recovered from the applicant and only the amount of the
draft less cancellation charge should be refunded.
 The original entries are to be reversed giving proper narration. An IBDA for the cancelled
L.D. should be issued on the drawee branch.
 Cancellation of L.D. should also be recorded in the L.D. Issue Register.

b) Payment order (PO): Pay Order gives the payee the right to claim payment from
the issuing bank. Payment is made from issuing branch only. Bank charges only
commission for this. However party must have an account with the bank, so that
whenever the fund refund they (party) can collect it.

c)Telegraphic Transfer (TT): Issuing branch requests another branch to pay specified
money to the specific payee on demand by Telegraph /Telephone. Payment is made from
ordered branch. Bank charge a commission plus telephone charge. However this service is
available only for a limited number of customers.

4.11.4. Foreign Remittance Section:

Foreign Remittance can be transferred in two ways:

 Formal Channel: Fund transfer from one country to another country through
official channels, i.e. banking channel, post office and other private service
channels, such as: Western Union Money Transfer, Nero Money Order, Money
Exchanger etc.

 Informal channel: Fund transfer from one country to another country through
hand by hand or over telephone in an unofficial channel like — “Hundi”. Experts
state that remittance collected by informal “Hundi” rings are used to finance
illegal trade and transaction. Terrorist financing is also made by this sort of
channel.

4.12. ACCOUNTS SECTION:

Accounts Department is called as the nerve Center of the bank. In banking business, transactions
are done every day and these transactions are to be recorded properly and systematically as the
banks deal with the depositors’ money. Improper recording of transactions will lead to the
mismatch in the debit side and in the credit side. To avoid these mishaps, the bank provides a
separate department, whose function is to check the mistakes in passing vouchers or wrong
entries or fraud or forgery. This department is called as Accounts Department.

4.13. AUTOMATION IN FSIBL ONLINE BANKING:

In today’s global business scenario, particularly in banking sector, technology plays a vital role. IT
helps the Financial Institutions in executing all sorts of customer friendly banking operations with
cost efficient service. Technology has become an aide of necessity rather than option in financial
institutions. Currently FSIBL. Provides online banking facilities to their customers.

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 4.13.1. What is online banking?
Online banking or Internet banking allows client’s to conduct financial transactions on a secure
website operated by their retail or virtual bank, credit union or building society. FSIBL has
introduced its Online Banking service since 2008. Being the largest in online connectivity among all
the branches we are capable of providing the better customer service to our Clients. Registration
is required to get this service. For registration please contact with your branch. It could be
mentioned here that Online Banking does not refer to internet Banking. It is basically ANY branch
banking.

4.13.2. FEATURES OF ONLINE BANKING:

Online banking has many features and capabilities in common, but also have some that are
application specific. The common features fall broadly into several categories:

 Electronic bill presentment and payment.

 Funds transfer between a client’s own checking and savings accounts or to another
client’s account.

 Investment purchase or sale.

 Loan applications and transactions, such as repayments.

 Bank statements / online statements.

 Support of multiple users having varying levels of authority.

4.13.3. Online Banking Services in Bangladesh:

 Internet Banking

 Mobile & SMS Banking

 Automated Teller Machine (ATM)

 FSIBL Cloud

 Balance Inquiry

 Cash deposit & withdraw

 Balance transfer

 Mini Statement

 Debit card, VISA card.

4.13.4. ONLINE BANKING SYSTEM OF FSIBL, PABNA BRANCH, PABNA:

FSIBL, Pabna Branch, Pabna has introduced its Online Banking service since inauguration. Being
the largest in online connectivity among all the branches we are capable of providing the better
customer service to our Clients. Registration is required to get this service. For registration please
contact with your branch. Online Banking of FSIBLs of is very limited. They are now providing only
deposit related online services. The service is called “Any Branch Banking”.

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Software Used by FSIBL Pabna Branch, Pabna:
FSIBL uses BANK ULTIMUS to do their online banking activities. BANK ULTIMUS operates from 60
offices in 41 countries. BANK ULTIMUS is constantly updated to the latest regulatory requirements
such as Baser II and International Accounting Standards. BANK ULTIMUS checks each activity
against the profile to determine validity, ensuring unacceptable attempts actions are prevented
and recorded.

Online services of the Branch: Online services of FSIBL means only providing cash deposit and
cash withdraw related services. Given below “Any Branch Banking” activities of FSIBL, Pabna
Branch, Pabna.

Terms & Conditions of “Any Branch Banking” service.

“ANY BRANCH BANKING” service is designed to serve its valued clients. Under this system (If the
branch is online), client will be able to do the following types of transactions:

 Cash withdrawal from your specified account at any Branch of FSIBL.

 Deposit in your specified account at any branch of FSIBL.
 Transfer of money from your account to any other account with any branch of FSIBL.
 Printing of Account Statement.

Charges for “Any Branch Banking” transaction:

There will be no charge for transaction within the city where the account is domiciled.

Transaction Limit:
 Cash deposit through any branch is unlimited.

 For Cash Withdrawal, There will be no limit of per day per account.

 If the withdrawal amount is large then the account holder must inform it to the bank
authority at least one day before.

 Time of Online Banking:

 10 am to 4 pm

4.13.5. SMS BANKING:

FSIBL brings SMS Banking services to provide instant access to your account information at any
time. Any mobile phone user having account of FSIBL can get the service through the mobile
phone upon registration.

ATM CARD SERVICES OF FSIBL: They provide VISA Islamic Card and other cards to the
Valued Clients.

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 4.14. INVESTMENT:
Investment operation of a Bank is the greatest share of total revenue generated from it, maximum
risk is centered in it and the very existence of a Bank mostly depends on prudent management of
its Investment Port-folio. Bank landing is important to the economy.
Investment and credit department receive application from clients in a prescribed application form
supplied by the First Security Islami Bank Ltd.. This application form contains detail about the
borrowers such as names address of the borrowers/ directors/partners/proprietors, type and
nature of the business, security offered, market of the borrower product, annual sales and
production etc.

4.14.1. OBJECTIVES AND PRINCIPLES OF INVESTMENT:

The objectives and principles of Investment operations of the Bank are:

 To invest fund strictly in accordance with the principles of Islamic Shariah.

 To diversify its investment portfolio by size of investment, by sectors (public & private), by
economic purpose, by securities and by geographical area including industrial, commercial
& agricultural.

 To increase the number of potential investors by making participatory and productive

investment.

 To finance various development schemes for poverty alleviation, income and employment
generation with a view to accelerating sustainable socio-economic growth and uplift of the
society.

 To invest in the form of goods and commodities rather than give out cash money to the
investment clients.

 To encourage social uplift enterprises.

4.15. DIFFERENT MODES OF INVESTMENT IN FIRST SECURITY ISLAMI BANK

LTD.:
o Bai Muazzal
o Murabaha
o Izara Bil Baia
o Bai Salam
o Musharaka

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 CHAPTER 5

ANALYSIS AND INTERPRETATION

Analysis:

Analysis is the process of breaking a complex topic or substance into smaller parts to gain
a better understanding of it. It also means examination and division of a business-related
situation or problem into major elements in order to understand the item in question and
make appropriate recommendations. For this report I present the Financial and
Operational analysis of FSIBL and lastly I try to present the SWOT analysis of FSIBL.

Interpretation:

From the above data we see that interest expenses ratio was more over stable up to
2017-2021 but increased more in 2022. It indicates that the bank was trying to keep the
interest expenses more stables up to 2007 but in later period they were unable to
maintain the track.

Comparative Analysis of Financial Performance as well as cash flows for current year
with immediate preceding five years: (Amount in Million TK.)
SI Particulars 2017 2018 2019 2020 2021
NO
1 Authorised capital 10000 10000 10000 30000 30000
2 Paid up capital 7128.17 7840.99 8625.09 9487.60 9961.98
3 Shareholders’equity 11770.74 13361.35 15165.54 17945.50 20343.76
4 Total Regulatory capital 20081.81 278.58 27472.21 34915.07 36632.45
5 Statutory Reserve 2950.45 3556.56 4339.99 5293.57 6456.66
6 Total Assets 344486.61 372183.32 437666.63 497250.79 544795.19
7 Total liabilities 332375.69 358477.74 422141.19 478952.77 524077.93
8 Total Deposits 299106.10 320011.19 376609.70 428687.22 469035.38
9 Total Investment 273352.47 311416.52 36429.96 414780.69 455850.14
10 Total Contingent liabilities 41263.42 47097.22 54806.72 46909.12 44525.61
11 Total Risk Weighted Assets 164510.61 205717.12 240730.41 287963.45 302924.48
12 Total Fixed Assets 3473.09 3428.64 6447.31 6492.53 6562.29
13 Operating Income 9925.24 11207.96 12380.79 13460.49 15145.71
14 Operating Expenditure 5038.14 5777.79 6416.27 7298.58 7731.09
15 Profit before Provision & Tax 4887.10 5430.18 5964.53 6161.91 7414.64
16 Profit before tax 2813.80 3074.04 3969.66 4793.90 5902.11
17 Net profit after provision & 1389.92 1594.66 2091.89 2792.58 3365.20
tax
18 Profit earning assets 303697.02 342354.14 396408.80 453339.59 499453.72
19 Non profit Earning Asset 40789.60 28981.65 40770.04 43911.20 45341.47

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Page
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Page
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SI Particulars 2017 2018 2019 2020 2021
NO
1 Investment as a % of 87.78% 93.15% 90.47% 91.90% 91.39%
Total Deposit
2 Capital Risk Asset 12.21% 10.34% 11.41% 12.12% 12.09%
ratio(CRAR)
3 Earnings Per Share 1.89 1.84 2.19 2.79 3.36
EPS(TK)
4 Prices Earning Ratio 8.33 5.39 4.07 3.06 3.87
(Times) SOLO
5 Return on Assets(ROA) 0.41% 0.45% 0.51% 0.60% 0.64%
SOLO
6 Net Assets Value Per 16.51 15.49 15.98 18.01 20.42
share (TK.)
7 Cost of fund 8.62% 9.66% 9.62% 7.96% 7.92%

8 Dividend:

a) Cash Nil Nil Nil 5% 5%

b) Bonus 10% 10% 10% 5% 5%

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SI Particulars 2017 2018 2019 2020 2021
No
1 Net Operating Cash Flows -11.47 -5.41 6.69 7.04 6.10
Per Share(NOCFPS)

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 CHAPTER 6
CONCLUSIONS

The performance of a Banks today competitive business is important. Just few years Ago
the number of bank was very small. So the competition was not a strong as it is today.
Things have changed with the emergence of many new banks now the Customers have
option to take the one that the best so the current banking business scenario is simply
highly competitive. The performance of First Security Islami Bank Ltd during the Last five
years has proved that with strong desire and will power one achieve whatever target he
may have. Almost all the leading banks in our country have various Extra facilities in offer
for the customers in comparison with other Banks but FIRST SECURITY ISLAMI BANK LTD
has succeed in achieving more customer than other competitors. This has been possible
only because of strong customer relation and excellent customer service.

After taking effective and time defeating measures regarding efficient employees and
instruments will help the local office of First Security Islami Bank Ltd to reach the pinnacle
of success with high profit and productivity. A new bank they should be stronger in
financial side because there is too much competition and new banks are growing up. If
Shah Jalal Bank adopts professionalism within the framework of Shariah, they will be able
to earn handsome “Halal” profit and pay higher return to the depositors and
shareholders. Ultimately, public will get more confidence on this type of banking.

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 ENDING SUMMARY:
General Banking engaged in cash received, payment, cheque clearing, opening accounts and local
remittance, account section etc. General Banking is the starting point of all Banking operations. It
helps to the customers and branch authorities in various ways.

REFERENCES:

1. Annual report (2021) of First Security Islami Bank Ltd.

2. General Banking Guideline of First Security Islami Bank Ltd.
3. Official Record of First Security Islami Bank Ltd, Pabna Branch, Pabna.
4. Manual for investments policies & guidelines published by First Security Islami Bank Ltd.
(HO).
5. www.fsiblbd.com.
6. E-mail:info@fsiblbd.com
7. www.bb.org.com
8. Alan Bryman & Emma Bell, Business Research methods 3rd edition Oxford University
press 2011.
9. K.K. Dewtta Mordern Economic Theory.
10. Lowrence J. Gitman Principle of Managerial Finance.
11. Pandey, Financial Management
12. Profane Chandra, Projects Planning, Analysis, Financing and Reviews.
13. Roy, Provash Chandra, A Study of Credit need and Credit Allocation.
14. Md. Wasek Ali, Investment Risk Management, Disbursement and Recovery.
15. First Security Islami Bank Limited. Pabna Branch, Pabna.
16. Statement of Affairs of First Security Islami Bank Limited. Pabna
Branch, Pabna.
17. Statement of Income Expenditure of First Security Islami Bank Limited. Pabna Branch,
Pabna.
18. Personal interview of Manager Statement of Affairs of First Security Islami Bank
Limited. Pabna Branch, Pabna.

---The End---
*********************

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