Internship Report On General Banking of Islami Bank Bangladesh Limited

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Particulars Page No
Executive Summary v
Chapter 01 Introduction 01-07
1.1 Introduction 02
1.2 Background of the Study 03
1.3 Origin of the Report 03
1.4 Scope of the Study 04
1.5 Objectives of the Study 04
1.6 Methodology of the study 04-06
1.7 Limitations of the Study 07
Chapter 02 Organizational overview 08-21
2.1 Origin of IBBL 09
2.2 Mission 09
2.3 Vision 10
2.4 Strategic Objectives 10
2.5 Features of IBBL 11-12
2.6 Special Features of IBBL 12
2.7 Core Values 13
2.8 Commitments 13
2.9 Functional Department of IBBL 13
2.10 Different Product and Services 14
2.10.1 • Deposit Products 14
2.10.2 • Investment Products & Schemes 15-16
2.10.3 • Remittance Products & Services 16-17
2.10.4 • Services of IBBL 17-18
2.11 Organ Gran of Islami Bank Bangladesh Limited 19
2.11 Corporate Structure 20
2.13 Corporate Information at a Glance 21
Chapter 03 Theoretical Aspects 22-30
3.1 Definition of Bank and Banking 23
3.2 Definition of Islamic Bank 23
3.3 Objectives of Islamic Banking 24
3.4 Difference between Conventional and Islamic Banking 24-25
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3.5 RIBA and its basic features 26

3.6 Difference between RIBA and Profit 27
3.7 Division wise product and services of IBBL 27
3.8 General Banking 28
3.9 Definition of General Banking 28-29
3.10 Investment Division 29
3.11 Foreign Exchange Division 30
3.12 Human Resources Division 30
3.13 Research and Development Division 30
Chapter 04 General Banking of IBBL 31-52
4.1 General Banking of IBBL 32
4.2 Account opening Section 32
4.2.1  Al-Wadeeah (Current Account) 32
4.2.2  Mudaraba Savings Account (MSA) 33
4.2.2.1  Savings Account Application Form 34
4.2.3  Mudaraba Term Deposit Account (MTDR) 35
4.2.4  Mudaraba Special Notice Deposit (MSND) 35
4.2.5  Mudaraba Hajj Savings Account (MHSA) 36
4.2.6  Mudaraba Special Savings Account (MSSA) 36
4.2.7  Mudaraba Savings Bond (MSB) 36
4.2.8  Mudaraba Monthly Profit Deposit Account (MMPDA) 36
4.2.9  Mudaraba Muhor Savings Account (MMSA) 37
4.2.10  Mudaraba NRB Savings Bond Account (MNSBA) 37
4.2.11  Students Mudaraba Savings Account (SMSA) 37
4.2.12  Mudaraba Farmers Savings Account (MFSA) 37
4.2.13  Mudaraba Waqf Cash Deposit Account (MWCDA) 38
4.2.14  Mudaraba Foreign Currency Deposit Account (MFCDA) 38
4.3 Account Update 38
4.4 Account Transfer 38
4.5 Account Closing 39
4.6 Issuance of cheque book 39
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4.7 Cash Section 40

4.8 Clearing and Bills section 41
4.8.1  Types of cheque 41-42
4.9 Local remittance section 42
4.9.1  Any Branch Banking Service 43
4.9.2  Pay Order (PO) 44
4.9.3  Demand Draft (DD) 44
4.9.4  Telegraphic Transfer (TT) 44-45
4.10 Alternative Delivery Channel (ADC) Service 46
4.10.1  IDM service 46
4.10.2  ATM of IBBL 47
4.10.3  Visa Card 48
4.10.4  iBanking 49
4.10.5  Mobile Banking & SMS Banking 49-51
4.11 Locker Service 51
4.12 Dispatch section 52
4.12.1  Inward 52
4.12.2  Outward 52
4.13 Establishment 52
Chapter 05 Analytical Aspects 53-73
5.1 Analysis on the basis of quantitative of selected bank 54
5.1.1 Bank Wise deposit on 2014 54
5.1.2 Initial Deposit to Open Current and Savings Account 55
5.1.3 Maintenance Charge for Current and Savings Account 56
5.1.4 Account Closing Charge for Current and Savings Account 57
5.1.5 Profit rate of Savings Account 58
5.1.6 Number of Branches 59
5.1.7 Number of ATM Booth 60
5.1.8 Number of Total Account Opened 61
5.2 QUESTIONNAIRE ANALYSIS 62
5.2.1 Employees of IBBL provide friendly service? 62
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5.2.2 Employees of IBBL can efficiently solve customer problem? 63

5.2.3 Is it easy to open account in IBBL? 64
5.2.4 New cheque book issuance time of IBBL is acceptable? 65
5.2.5 Pay order issuance time of IBBL is acceptable? 66
5.2.6 New Visa Card issuance time of IBBL is acceptable? 67
5.2.7 ATM service of IBBL is good 68
5.2.8 Service charge is good enough in IBBL? 69
5.2.9 Waiting time to get service from IBBL is longer? 70
5.2.10 Information of IBBL is available to the customers? 71
5.2.11 Are you found freedom in your banking activities? 72
5.2.12 Customer satisfaction from the service of IBBL? 73
Chapter 06 Findings, Recommendations, Conclusion 74-77
6.1 Findings 75
6.2 Recommendations 76
6.3 Conclusion 77
References & Appendix 78-80
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Chapter: 1
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Introduction
1.1 Introduction
Banks are financial institutions engaged in boosting national savings and capital formation as
well as constitutes infrastructure through financing of various development projects. In
performing multi-dimensional activities like borrowing and lending of money, drawing,
collecting and discounting bills, transferring fund, safe deposit, vault/locker service, foreign
exchange transaction etc. Today’s customers want service and information to be provided at all
times and places.
After 1983, in our country, there were two types of banks: nationalized and private banks. With
the passage of time, second generation and third generation private banks were established. In
the last decade, promoters tried to upgrade the banking system mainly from the manual system
with the technology-based system. Islamic Bank Bangladesh Limited having 294 branches all
over the country and one of the oldest private banks in our country is always very aware of
developing its banking system.
As Bangladesh is one of the largest Muslim countries in the world, the people of this country are
deeply committed to Islamic way of life as enshrined in the Holy Qur'an and the Sunnah. The
establishment of Islami Bank Bangladesh Limited on March 13, 1983, is the true reflection of
this inner urge of its people, which started functioning with effect from March 30, 1983. This
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Bank is the first of its kind in Southeast Asia. It is committed to conduct all banking and
investment activities on the basis of interest-free profit-loss sharing system.
With the active co-operation and participation of Islamic Development Bank (IDB) and some
other Islamic banks, financial institutions, government bodies and eminent personalities of the
Middle East and the Gulf countries, Islami Bank Bangladesh Limited has by now earned the
unique position of a leading private commercial bank in Bangladesh.
1.2 Background of the Study
Islami Bank Bangladesh Limited has significantly contributed in flow of international

transactions. Among the private commercial bank of our country IBBL is being kept the first
position in earnings the operating profit. Why I have chosen this topic, because to focus the
general banking performance of IBBL & its activities as based on Islamic Shariah.
This study is done to evaluate the overall activities of IBBL. Findings of the study may benefit
the organization itself to take strategic decision on its future plan to enhance the volume of
general banking. It may also benefit the readers as well as researchers who have particular
interests in international trade finance.
1.3 Origin of the Report
As a part of the Bachelor of Business Administration (BBA) course requirement, it is a 12 weeks

loge internship program to introduce the students with the real life business administration. I
took the internship with Islami Bank Bangladesh Limited which stands a prominent name in
banking industry. I am proud to work as an internee with IBBL and this experience will surely
help me in my future career. This advance working report has been prepared as a part of the
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internship program. Being an intern the main challenge was to translate the theoretical concepts
into real life experience. The internship program and the study have following purpose:
 To get organize detail knowledge on the job responsibility.

 To compare the real scenario with the lessons learned at BUBT.
 To experience the real business world.
 To fulfill the requirement of BBA program.
1.4 Scope of the Study
In my internship program, the scope of the work was as immense as I was assigned to work in
every department of the bank in MIRPUR BRANCH. I have tried to observe and understand the
all banking activities especially general banking activities and other day to day functions perform
in this branch. I also tried to understand different topic from the bank personnel.
1.5 Objectives of the Study
The broad objective
The main objective is to analyze the performance of general banking of Islami Bank Bangladesh
Limited.
The specific objectives
 To scrutinize the account opening, account closing, cash receipt & payment process,
cheque & bill clearing process of IBBL.
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 To examine the service fees, profit rate, number of branches & number of ATM booths of
IBBL, SIBL & AIBL.
 To analyze the customer’s perception regarding the general banking of IBBL.
1.6 Methodology of the study
Methods followed to perform a job to complete a task are called methodology. In conducting this
study the following methodology was adopted in collecting data & information, preparation of
report.
The methodology of report is given below:
1. Research Design
The study, General Banking of Islami Bank Bangladesh Limited is descriptive in nature that
focuses on the function of general banking of IBBL. To perform the study data sources were
identified and collected, they were classified, analyzed, interpreted and presented in a systematic
manner and key points were found out.
2. Sources of data collection
For preparing the report I have collected data both from primary and secondary sources of data.
And both data sources are equally important for research purpose and preparation of the report.
i. Primary sources
 Practical desk work
 Face to face conversation with the officer
 Direct observations
 Face to face conversation with the client
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ii. Secondary sources
 Annual reports of IBBL
 Different files & folders of IBBL
 Web base support from the internet
 Daily diary (containing my activities of practical orientation in IBBL maintained
by me)
 Class notes of IBTRA
 Different journals& articles
 Different circulars issued by the IBBL
3. Research Instrument
Questionnaire is a research instrument & it is very easy to collect data.
i. Type of interview method
Face to face interview is conducted to collect information.
ii. Type of Question
Structure questions with five response categories have been used to conduct the survey.
iii. Size
There are twelve questions in the questionnaire.
4. Sampling Plan
Sampling plan is a definite plan for obtaining a sample from a given population.
i. Target Population
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A group of individuals or items that similar one characteristic form which data can be
gathered and analyzed is called a population. Here the population is all the individual
customer of IBBL.
ii. Sample Unit/Element
The sample unit is the individual customer of IBBL’s MIRPUR Branch
iii. Sample Frame
Sampling frame is defined as the list or lists from which individuals are selected.
iv. Sample Procedure
Non-probability convenience sampling procedure is used in the survey.
v. Sample Size
The sample size is 20.
5. Time Period of Data Collection
In internship time period I have collected all the data.
6. Data Analysis
The primary data regarding customer perception about using general banking of IBBL are
analyzed using frequency distribution technique.
1.7 Limitations of the Study
The main limitation here is as an internee I could not share all the information every time for the
organization internal security. There are some other limitations these limitations are as follows:
 The major limitation faced in preparing this report was the sensitivity of the data. As it is a
highly competitive market, if the margin information is released to other competitors, it may
have a negative impact on their business.
 Time limitation is also a big factor. The duration of my internship Program was only two
months. But this allocated time is not enough for a complete and fruitful study.
 I was not assigned for a specific task in each day. So I was not able to understand
banking activities deeply.
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 The Bank was a busy one having heavy rush of people, whom officers need to deal with.
So allocation of time for an internee is very much difficult for the officers of the bank.
 Confidentiality of data was another important barrier that was confronted during the conduct
of this study. Every organization has their own secrecy that is not revealed to others. While
collecting data on IBBL, personnel did not disclose enough information for the sake of
confidentiality of the organization.
 In many case, up to date information was not published.
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Chapter 2
Organizational overview
2.1 Origin of IBBL

Islami Bank Bangladesh Limited hereinafter called IBBL was established on March 13, 1983 as
a public limited company under Companies Act, 1913 (amended in 1994) and as the first Islamic
Bank in the South East Asia. The bank started commercial operation on March 30, 1983 under
the ambit of Banking Company’s Ordinance 1962, later on the Banking Companies Act, 1991 as
the first interest- free Islamic Shariah based commercial bank with an objective of catering to the
need of ever increasing demand for Islamic Shariah based financial products. The IBBL was
enlisted with Dhaka Stock Exchange (DSE) after issuing its share to the public in 1985 and also
enlisted with Chittagong Stock Exchange (CSE) in 1996. IBBL is one of the 20 Blue Chip
companies of DSE since 2001 and also one of the 30 best companies of CSE since 2000.
Authorized Capital of the Bank is Tk. 20,000.00 Million and Paid-up Capital is Tk. 16,099.90
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million having 33,686 shareholders with 63.09% foreign shareholding having largest branch
network (total 294 Branches) among the private sector Banks in Bangladesh as on 30th
September 2014. The bank was sponsored by Fourteen Foreign Institutions, local institutions, a
group of local businessmen representing various business groups and other important
personalities of Middle East and Europe. The IBBL provides a wide range of Islami banking
products and services. The major portion of investment portfolio of IBBL is towards corporate
while the rest is towards SME, specialized schemes and retail investments.
2.2 Mission
 To establish Islamic Banking through the introduction of a welfare

oriented banking system and also ensure equity and justice in the field of
all economic activities, achieve balanced growth and equitable
development in through diversified investment operations particularly in
the priority sectors and less developed areas of the country.
 To encourage socio-economic upliftment and financial services to the
loss-income community particularly in the rural areas.
2.3 Vision
IBBL’s vision is to always strive to achieve superior financial performance, be considered a

leading Islamic Bank by reputation and performance.
 To establish and maintain the modern banking techniques, to ensure soundness

and development of the financial system based on Islamic principles and to
become the strong and efficient organization with highly motivated
professional, working for the benefit of people, based upon accountability,
transparency and integrity in order to ensure stability of financial systems.
 To encourage savings in the form of direct investment.
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 To encourage investment particularly in projects which are more likely to lead
to higher employment
2.4 Strategic Objectives
 To ensure customers' satisfaction.

 To ensure welfare oriented banking.
 To invest in the thrust and priority sectors of the economy.
 To pay more importance in human resources as well as financial capital.
 To ensure lucrative career path, attractive facilities and excellent working
environment.
 To ensure zero tolerance on negligence in compliance issues both Sharia’h
and regulatory issues.
 To motivate team members to take the ownership of every job.
 To ensure development of devoted and satisfied human resources.
 To encourage sound and pro-active future generation.
 To achieve global standard.
 To strengthen corporate culture.
 To ensure Corporate Social Responsibilities (CSR) through all activities.
2.5 Features of IBBL
An Islamic bank has several distinctive features as compared to its conventional counterpart.
Chapra (1985, PP.154-57) has outlined six essential differences as below:
Abolition of interest (Riba): Since Riba is prohibited in the Quran and interest in all its forms is
akin to Riba, as confirmed by Fuqaha and Muslim economists with rare exceptions, the first
distinguishing feature of an Islamic bank must be that it is interest-free.
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 Adherence to public interest: Activity of commercial banks being primarily based on the
use of public funds, public interest rather than individual or group interest will be served
by Islamic commercial banks. The Islamic banks should use all deposits, which come
from the public for serving public interest and realizing the relevant socio-economic
goals of Islam. They should play a goal-oriented rather than merely a profit-maximizing
role and should adjust themselves to the different needs of the Islamic economy.
 Multi-purpose bank: Another substantial distinguishing feature is that Islamic banks will
be universal or multi-purpose banks and not purely commercial banks. These banks are
conceived to be a crossbreed of commercial and investment banks, investment trusts and
investment -management institutions, and would offer a variety of services to their
customers. A substantial part of their financing would be for specific projects or ventures.
Their equity-oriented investments would not permit them to borrow short-term funds and
lend to long-term investments. This should make them less crisis-prone compared to their
capitalist counterparts, since they would have to make a greater effort to match the
maturity of their liabilities with the maturity of their assets.
 More careful evaluation of investment demand: Another very important feature of an
Islamic bank is its very careful attitude towards evaluation of applications for equity
oriented financing. It is customary that conventional banks evaluate applications,
consider collateral and avoid risk as much as possible. Their main concern does not go
beyond ensuring the security of their principal and interest receipts. Since the Islamic
bank has a built in mechanism of risk sharing, it would need to be more careful in how it
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evaluates financing requests. It adds a healthy dimension in the whole lending business
and eliminates a whole range of undesirable lending practices.
2.6 Special Features of IBBL
All activities are conducted on interest-free system in accordance with Islamic Shariah
Principles.
 Investment is made through different modes as per Islamic Shariah.

 Investment-income of the Bank is shared with the Mudaraba depositors according to an
agreed upon ratio ensuring a reasonably fair rate of return on their deposits.
 Aims to introduce a welfare-oriented system and also to establish equity and justice in the
field of economic operators.
 Extends socio-economic and financial services to individuals of all economic background
with strong commitment in rural advancement uplift.
2.7 Core Values
 Trust in Almighty Allah

 Adherence to the spirit of Islamic Shari’ah
 Honesty & Integrity
 Transparency & Accountability
 Welfare Driven
 Equity and Justice
 Environment Consciousness
 Customers Focus
 Respect for all
 Discipline & cooperation
2.8 Commitments
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 To Shariah
 To the Regulators
 To the Shareholders
 To the Community
 To the Customers
 To the Employees
 To other stakeholders
 To Environment
2.9 Functional Department of IBBL

The Islami Bank Bangladesh Limited (IBBL) provides several services to its customers by
several departments. These departments are dedicated to its millions of customers. These are
given follows:
1) General banking
2) Foreign Exchange
3) Investment
2.10 Different Product and Services
2.10.1 Deposit Products
1. Deposit Products in Local Currency

 Al-Wadeah Current Account
 Mudaraba Savings Account
 Mudaraba Special Notice Account
 Mudaraba Special Savings (Pension) Account
 Mudaraba Term Deposit Account
 Mudaraba Savings Bond Account
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 Mudaraba NRB Savings Bond
 Mudaraba Hajj Savings Account
 Mudaraba Waqf Cash Deposit Account
 Mudaraba Monthly Profit Deposit Account
 Mudaraba Muhar Savings Deposit Account
 Students Mudaraba Savings Account
 Mudaraba Farmers Saving Account
 Mudaraba Upohar Deposit Scheme
2. Deposit products in Foreign Currency

 Mudaraba Foreign Currency Account (MFCA)
 Mudaraba Exporters’ Retention Quota Account (MERQ)
 Foreign Currency Account (FCA)
 Foreign Currency Account (ERQ)
 Foreign Currency Account of EPZ Enterprise
 Resident Foreign Currency Deposit Account (RFCD)
 Non Resident Investors Taka Account (NITA) for foreign port-folio
Investors.
 Non-Resident Taka Account (NRTA) for Foreign Direct Investors.
 Foreign Currency Account for EPZ Companies (FCA-EPZ)
2.10.2 Investment Products & Schemes
1. Investment Products
 Bai-Murabaha
 Bai-Muajjal
 Bai-Istijrar
 Bai-Salam
 Bai-Salam (Pre-shipment)
 Mudaraba
 Musharaka
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 Musharaka Documentary Bill (MDB) Inland
 Musharaka Documentary Bill (MDB) in Foreign Currency
 Hire Purchase under Shirkatul Melk (HPSM)
 Murabaha Post Import (MPI)
 Murabaha Import Bills (MIB)
 Murabaha Import LC
 Murabaha Foreign Currency Investment (MFCI) under EDF
 Murabaha Foreign Currency Investment (MFCI) under Balance of
MFCD A/C
 Bai-Muajjal Back to Back Bills
 Bai-as-Sarf (Foreign Documentary Bill: FDB)
 Bai-as-Sarf (Foreign Currency Cheques/Drafts: FCD)
 Mudaraba NRB Entrepreneur Investment Scheme (MNEIS)
2. Welfare-oriented Investment Schemes

 Household Durable Scheme (HDS)
 Housing Investment Scheme (HIS)
 Transport Investment Scheme (TIS)
 Car Investment Scheme (CIS)
 Investment Scheme for Doctors (ISD)
 Small Business Investment Scheme (SBIS)
 Agriculture Implements Investment Scheme (AIIS)
 Rural Development Scheme (RDS)
 Micro Enterprise Investment Scheme (MEIS)
 Urban Poor Development Scheme (UPDS)
 Micro Industries Investment Scheme (MIIS)
 Women Entrepreneurs Investment Scheme (WEIS)
 Palli Griha Nirman Beniyog Prakalpa (PGNBP)
 NRB Entrepreneurs Investment Scheme (NEIS)
 Solar Panel Investment Scheme (SPIS)
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2.10.3 Remittance Products & Services
1. Foreign Remittance Products

 Remittance Card
 Foreign Demand Draft
 Hajj Pre-paid Card
 Travel Pre-paid Card
 Foreign Remittance Services
 Central Crediting Account
 Payment of Spot Cash Remittances
 SMS Notification
 SMS Push Pull Service
 Maintaining NRD & NRT Account
2. Inward remittance
 Electronic Fund Transfer
 Spot Cash
 Application for Programming Interface
 Encashment of cash Foreign Currency
 Collection of F.C. Cheques /Drafts
 Payment of Foreign TT & DD (FTT & FDD)
3. Outward Remittance
 Travel purpose
 Study purpose (Student File)
 Medical purpose
 Issuance of Foreign TT & DD (FTT & FDD)
 Selling/Issuance of Foreign Currency note
 Travel Pre-paid Card
 Commercial Remittance
 Different Private Remittance
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2.10.4 Services of IBBL
1. Corporate Services
 Investment facilities against this A/c (Corporate guarantee/certificate

needed)
 Standing Instruction facility for depositing MSS & Hajj A/c
 Existing BEFTN facilities through Bangladesh Bank
 Existing BACPS service through Bangladesh Bank
 Salary can be credited within one hour throughout the country
 Centralized foreign trade processing system
 IBBL Online money transfer
2. Technology Based Service
 Any Branch Banking Services
 IDM service
 ATM Service
 Visa Card
 iBanking Service
 SMS Banking
 mCash Service
3. Other Value Added Services
 Payment Order (PO)

 Demand Draft (DD)
 Telegraphic Transfer (TT)
 Locker
 IBBL Web portal facility
 Letter of Credit
 Bank Guarantee
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 Foreign Bank Guarantee
 Export Bills Collection
 SWIFT
 IBBL Call Center
 Islami Bank Service Centre
4. Training Services
 International: Officials of Foreign Banks on Islamic Banking

 National: Training of own manpower & others on Islamic Banking
 Internship training for BBA/MBA students on IBTRA (Islami Bank
Training & Research Academy)
2.11 Organ Gran of Islami Bank Bangladesh Limited
SHARIAH SUPERVISORY REVIEW COMMITTEE

COMMITEE
BOARD OF DIRECTORS, CHAIRMAN

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RISK MANAGEMENT EXECUTIVE ISLAMI BANK ISLAMI BANK
COMMITTEE COMMITTEE SECURITIES LIMITED FOUNDATION
MANAGEMENT
MANAGING DIRECTOR
Shovon
SHARIAH
SECRETERIATE BOARD SECRETARIATE
ASSET LIABILITY
MANAGEMENT R&D COMMITTEE
IBTRA HRM
COMMITTEE
DEVELOP
OPERATI MENT
ON WING
WING
C&I RISK
WING MANAGE
MENT
WING
Retail ICC
investme WING
nt wing
Internati ICT
onal WING
banking
Vigilance squad
MD Secretariat
ZONES & CORPORATE BRANCHES
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2.12 Corporate Structure
C
h
ai
r
m
Vice
a
chairma
n
n
Board of
director
Deputy Managing
Director (DMD)
Executive Vice President

(EVP)
Senior Vice President (SVP)
Vice President (VP)
Assistant Vice President (AVP)
Senior Principle Officer (SPO)
Principle Officer (PO)
Senior Officer
Officer
Assistant Officer (Grade-1)
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2.13 Corporate Information at a Glance
*Information as per annual report 2014
Name of the Company Islami Bank Bangladesh Limited
Legal Status Public Limited Company

Nature Of Business Banking, Financial Services
VAT Registration No./BIN No. 19011032134
Website www.IslamiBankBd.com
Head Office Islami Bank Tower, 40, Dilkusha
C/A, Dhaka- 1000, Bangladesh.
Cell (02) 9563040
SWIFT IBBLBDDH
Date of Incorporation 13 March, 1983
Number of Branch:
 Total Branch  294
 SME/Agriculture Branch  30
 Zone  14
 AD Branch  53
 Offshore banking Unit  03
ATM Booth:
 Own  450
 Shared  4000
 IBBL Deposit Machine (IDM)  33
Directors 15
Employees 13,574
Shareholders 60,857
MPB holders 23,272
Local Shareholders 32.75%
Foreign Shareholders 67.25%
Foreign Correspondents 723
Authorized Capital Tk. 20,000 million
Paid –up Capital Tk. 16099.91 million
Total Income Tk. 58,047 million
Reserve Fund 28,097.92 million
Gross Profit Ratio 47.20%
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Chapter 3
Theoretical Aspects
3.1 Definition of Bank and Banking
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Bank is an institution that deals in money and its substitutes and provides crucial financial
services. The principal type of baking in the modern industrial world is commercial banking and
central banking. Banking Means "Accepting Deposits for the purpose of lending or Investment
of deposits of money from the public, repayable on demand or otherwise and withdraw by
cheque, draft or otherwise." The concise oxford dictionary has defined a bank as "Establishment
for custody of money which it pays out on customers order." In fact, this is the function which
the bank performed when banking originated. "Banking in the most general sense, is meant the
business of receiving, conserving & utilizing the funds of community or of any special section of
it."
3.2 Definition of Islamic Bank
According to Organization of Islamic Conference (OIC), “Islamic bank is a financial institution

whose statutes, rules and procedures expressly state its commitment to the principles of Islamic
Shariah and to the banning of the receipt and payment of interest on any of its operations.”
According to Dr. Ziauddin Ahmed “Islamic Bank is essentially a normative concept and could be
defined as conduct of banking in consonance with the ethos of the value system of Islam.
"An Islamic bank is a financial institution whose status, rules and procedures expressly state its
commitment to the principle of Islamic Shariah and to the banning of the receipt and payment of
interest on any of its operations"
(Ali & Sarkar 1995, pp.20-25)
3.3 Objectives of Islamic Banking
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 To offer contemporary financial services in conformity with Islamic Shariah;
 To contribute towards economic development and prosperity within the principles of
Islamic justice;
 Optimum allocation of scarce financial resources; and
 To help ensure equitable distribution of income.
3.4 Difference between Conventional and Islamic Banking

Conventional banking is essentially based on the debtor-creditor relationship between the
depositors and the bank on the one hand, and between the borrowers and the bank on the other.
Interest is considered to be the price of credit, reflecting the opportunity cost of money.
Islam, on the other hand, considers a loan to be given or taken, free of charge, to meet any
contingency. Thus in Islamic Banking, the creditor should not take advantage of the borrower.
When money is lent out on the basis of interest, more often it happens that it leads to some kind
of injustice. The first Islamic principle underlying such kinds of transactions is that "deal not
unjustly, and ye shall not be dealt with unjustly" [2:279]. Hence, commercial banking in an
Islamic framework is not based on the debtor-creditor relationship.
For the interest of the readers, the distinguishing features of the conventional banking and
Islamic banking are shown in terms of a box diagram as shown below:
Sl. No. Conventional Banks Islamic Banks
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1. The functions and operating modes of The functions and operating modes of
conventional banks are based on Islamic banks are based on the principles of
manmade principles. Islamic Shariah.
2. The investor is assured of a In contrast, it promotes risk sharing between
predetermined rate of interest provider of capital (investor) and the user of
funds (entrepreneur).
3. It aims at maximizing profit without It also aims at maximizing profit but subject
any restriction. to Shariah restrictions.
4. It does not deal with Zakat. In the modern Islamic banking system, it has
become one of the service-oriented functions
of the Islamic banks to collect and
distribute Zakat.
5. Leading money and getting it back Participation in partnership business is the
with interest is the fundamental fundamental function of the Islamic banks.
function of the conventional banks.
6. Its scope of activities is narrower Its scope of activities is wider when
when compared with an Islamic bank. compared with a conventional bank. It is, in
effect, a multi-purpose institution.
7. It can charge additional money The Islamic banks have no provision to

(compound rate of interest) in case of charge any extra money from the defaulters.
defaulters
8. In it very often, banks own interest It gives due importance to the public interest.
becomes prominent. It makes no Its ultimate aim is to ensure growth with
effort to ensure growth with equity. equity.
9. For interest-based commercial banks, For the Islamic banks, it is comparatively
borrowing from the money market is difficult to borrow money from the money
relatively easier. market
10. The status of a conventional bank, in The status of Islamic bank in relation to its
relation to its clients, is that of clients is that of partners
creditor and debtors.
3.5 RIBA and its basic features
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The word used by the Quran concerning 'interest' is Riba. The literal meanings of Riba are
money increase, increase of anything or increment of anything from its original amount
(Maududi 1979, p.84).
However, all increases are not considered as Riba in Islam. Money may increase in business
activities as well. This increase is not at all considered as Riba. The increase, instead of being
prohibited (Haram), is approved (Halal) in Islam. Islam prohibits only those increases that are
charged on the loan with a prefixed rate.
Abu Bakr al Jasas writes, "During the period of Ignorance the lender and borrower came to an
agreement that the borrower would pay back within a specified period the principal amount
along with the agreed upon excess."
Ibne Hajar Askalani says, "Excess goods or money charged on and above principal amount is
Riba."
Thus, any prefixed extra amount charged on a specific amount of money or goods lent out is
called Riba.
The most important characteristic of Riba is that it is the positive and definite result of money
when changed. In other words, when money begets money, without being exchanged for goods
or services, it is called Riba. Its basic characteristics are:
 It must be related to loan;

 A prefixed amount of money to be paid when due;
 A time is fixed for the repayment; and
 All these elements for repayment are taken as conditions for loan.
3.6 Difference between RIBA and Profit
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There is debate on the similarity of riba and profit. In effect they are fundamentally different
from each other. These difference are given below –
Sl. No. Riba Profit

1 When money is "charged", its imposed When money is used in trading (for e.g.)
positive and defines result is Riba. its uncertain result is profit.
2 By definition, Riba is the premium paid By definition, profit is the difference

by the borrower to the lender along with between the value of production and the
principal amount as a condition for the cost of production.
loan.
3 Riba is prefixed, and hence there is no Profit is post-determined, and hence its
uncertainty on the part of either the amount is not known until the activity is
givers or the takers of loans. done.
4 Riba cannot be negative, it can at best be Profit can be positive, zero or even

very low or zero. negative.
5 From Islamic Shariah point of view, it From Islamic Shariah point of view, it

is Haram. is Halal.
3.7 Division wise product and services of IBBL
Islami Bank Bangladesh Limited provides services in the following category:
 General Banking
 Investment Division
 Foreign Exchange Division.
 HR Division
 Research and Development Division
3.8 General Banking
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General banking provides the foundation of banker customer relationship through opening
account. This is the most busy department and the daily transaction of concerned to the
customers for drawing or depository money, Selling of instruments, collection of their
instruments providing other additional services to them and keep customer section busy. Officers
of this dept should possess the required behaviors for optimum satisfaction of the customers. The
Bank provides different type of accounts and special type of savings scheme under general Banking.
3.9 Definition of General Banking
General banking department performs the core functions of bank, operates day-to-day
transactions of banking operation. Every day it receives deposits from customers and meets their
demand for cash. It opens new accounts, remits customer’s money from one place to another
through issuing bank draft, pay order, telegraphic transfer, collects all bill like Local cheque
collection, Inward bill collection and outward bill collection for customers. Since bank is bound
to provide these services every day, General banking is also known as retail banking.
General banking department performs the majority functions of a bank. It is the core department
of any bank. The activities of general banking of IBBL are mainly divided into the following
categories:
 Account opening, update, transfer & closing section

 Issuance of cheque book.
 Cash section
 Clearing And Bills section
 Local remittance section
 Alternative Delivery Channel.
 Locker Service.
 Dispatch section
 Establishment
Mode of Account
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 Al - Wadeeah Mode
 Mudarabah Mode
Under mudarabah mode the following accounts are involved:
 Mudarabah Savings Account (MSA)

 Mudarabah Term Deposit Receipt (MTDR)
 Mudarabah Special Notice Account (MSAC)
 Mudarabah Hajj Savings Account (MHSA)
 Mudarabah Savings Bond Scheme (MSBS)
 Mudarabah Special Savings Scheme (MSSS)
 Mudarabah Monthly Profit Deposit (MMPD)
 Mudarabah Muhor Savings Scheme. (MMSS)
3.10 Investment Division
In general, Investment is the action of deploying funds with the intention and expectation that
they will earn a positive return for the owner (Brokington 1986, p.68). Funds may be invested in
either real assets or financial assets.
Investment operation is the vital operation which earn greater share of total revenue. Well
planned and appropriate investment policy frame work is a pre-requisite for achieving the goal of
the Bank i.e. implementation the special feature of the investment policy of the Bank is to invest
on the basis of profit- loss sharing system in accordance with the tenets and principles of Islamic
Shariah
A complete definition for the term "Islamic Modes of Finance"' may be given as follows:
"The systematic and detailed Shariah rules that govern the contractual relationship of an
investment activity that can be applied for attracting money capital" (Fahmy & Sarkar).
Usually Islami banks around the world practices the following investment modes:
A. Bai Mode B. Share Mode C. Ijara Mode
Bai- Murabaha Mudaraba Hire Purchase

Bai- Muajjal Musharaka under Shirkatul
Bai Salam Melk
Istisna’ Ijarah Page | 34
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3.11 Foreign Exchange Division
Foreign Exchange means exchange foreign currency between two countries. If we consider
‘Foreign Exchange’ as a subject, then it means all kind of transactions related to foreign
currency. In other wards foreign exchange deals with foreign financial transactions.
There are three kinds of foreign exchange transactions
Import Export Remittance
3.12 Human Resources Division

The Human Resource Division performs the activities related to administration and personnel.
The main functions of HRD are:
 Selection and recruitment of new personnel
 Appropriate placement of human resources
 Maintain the detail about transfer, promotion and leave of personnel
 Training and development of human resource
3.13 Research and Development Division
This division is maintained to do the research and development work to innovate new products
and services as well as to improve existing products and services. It is the bank which has
recharge and training center that train the new employee of the bank it also train internee that
other bank do not do.
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Chapter 4
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4.1 General Banking of IBBL
General banking is the heart of any bank. In this division bank does lots of work. These are
includes Al Wadia: - It means to keep something is safe o safety. Current account is conducted
under Al Wadia system. Mudaraba mode: - It is a business contract between two or more parties.
In here one party give 100% capital but not take any part in business activities and another party
give his labor in business activities. The principle of profit/loss distributing in mudaraba is called
loss bearing and profit shearing. In this mode client is called Saheb-Al-Maal and bank called
Mudarib. Under this agreement profit distribution under agreed ratio and loss (if any) will be
born by Saheb Al Mall. The bank distributes minimum 65% of its investment -income earned
through deployment of Mudaraba Deposits among the mudaraba depositors.
4.2 Account opening Section

Banker-customer relationship begins with the opening of an account by the customer. Opening of
an account binds the same into a contractual relationship. But the selection of customer is very
crucial. In fact, frauds and forgery of all kinds start by opening of an account by the customer(s).
So, IBBL takes extra care in its selection to choose right customer. IBBL officer opens different
types of account on the request of clients. The procedure of opening account is given bellow:
4.2.1 Al-Wadeeah (Current Account)
Islami Bank Bangladesh Limited operates Al-wadeah Current Account on the principles of Al-
wadeah. The Bank commits to refund money deposited in these Accounts on the demand of
customers. On the other hand the Bank takes permission from customers that the Bank may
utilize their money. Customers may operate these Accounts as their desires. No profit is
disbursed in these Accounts and depositors do not bear any loss.
Required Documents
 Complete account opening form

 Minimum deposit Tk.1000/-
 02 Copies passport size photographs of every operators duly attested by introducer
 Identification proof like National ID Card/Passport/Chairman certificate
 1 copy photograph of nominee duly attested by the accountholder
 Signature of Introducer
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4.2.2 Mudaraba Savings Account (MSA)
In the perspective of these Accounts the Bank is 'Mudarib' and customers are 'Shahib Al-Mal'.
On behalf of depositors, the Bank invests their deposited money and distributes minimum 65%
of investment-income earned through deployment of Mudaraba funds among Mudaraba
depositors after the closing of the year.
Mudaraba savings account is opened under the Mudaraba principal of Islami Shariah. Under the
above principal the clients is the Shaheb-Al Mal and the Bank is Mudarib. Mudaraba Saving’s
accounts are mainly meant for Non-Trading customers who have some potential saving with
small no. of transactions taking place. More than one person can open and operate a Mudaraba
savings account. A guardian on behalf of a minor can open a Mudaraba Savings A/C. In which
case a declaration stating the date of birth of the minor should be obtained from the guardian.
As per Bangladesh Bank instruction 90% of SB deposits are treated as time liability and 10% of
it as demand liability. In IBBL there is a restriction about drawing money from SB account but
any time accounts holder may draw money of any amount with prior notice. Generally
householders and individuals are the clients of this account.
Required Documents

 02 copies passport size photographs of account holder duly attested by introducer
 Identification proof like National ID Card/Passport/Driving license
 Initial deposit Tk.500/-
 Introducer signature
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4.2.2.1 Savings Account Application Form
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4.2.3 Mudaraba Term Deposit Account (MTDR)
Mudaraba Term Deposit Receipt (MTDR) is a profit bearing account which offers returns by
depositing money for fixed period of time based on Mudaraba concept. These deposits are
repayable subject to a period of notice and hence known as time deposits or time liabilities
meaning thereby that these are withdrawable subject to a period of notice and not on demand.
Tk.1000/- and multiple of Tk.100/- for the period of 3 months, 6 months, 12 months, 24 months
and 36 months can be deposited.
Required Documents

4.2.4 Mudaraba Special Notice Deposit (MSND)
Mudaraba Special Notice Deposit (MSND) is a profit bearing Mudaraba deposit suitable for you
if you are involved in business or your transactions are frequent but does follow a pattern. It
enables you to operate a kind of Current Account which incurs profit.
Required Documents

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4.2.5 Mudaraba Hajj Savings Account (MHSA)
IBBL has introduced a scheme in the name and style of 'Mudaraba Hajj Savings Scheme' to
facilited the intending Muslims to perform Hajj properly at appropriate age. This is purely a
savings scheme for performing hajj.Any Muslim intending to perform Hajj by bulding-up
deposit in Hajj Saving Account required for meeting Hajj expenses will select one from the 25
alternative choices based on duration of period from 1 year to 25 years for building up savings
by monthly installments.
4.2.6 Mudaraba Special Savings (Pension) Account (MSSA)
Mudaraba Special Savings (Pension) Account of 5-year or 10-year term may be opened for
monthly deposits of Tk. 100.00, Tk. 200.00, Tk. 300.00, Tk. 400.00, Tk. 500.00, Tk. 600.00, Tk.
700.00, Tk. 800.00, Tk. 900.00, Tk. 1000.00 and Multiple of thousand upto Tk. 20,000.00 only.
After maturity of the account, the account holder will be paid his deposited amount with profit
earned at a time or on installment basis. The parents or legal guardians shall be allowed to open
this account jointly with a minor
4.2.7 Mudaraba Savings Bond (MSB)
Persons aged 18 years and above shall be eligible to purchase Mudaraba Savings Bond in single
name or in joint names, Educational Instituions, Clubs, Associations and other non-trading and
non-profit socio-economic institutions shall also be eligible to purchase Bonds in the name of the
institutions. Guardians shall be allowed to purchase Bonds jointly with a minor mentioning the
age of the minor. Mudaraba Savings Bond shall be available I Tk.1000, Tk.5000, Tk.25000,
Tk.50000, 1, 00,000, Tk.5, 00,000 and Tk.10, 00,000 denominations
4.2.8 Mudaraba Monthly Profit Deposit Account (MMPDA)
Any individual may open this Account by depositing money a minimum amount of Taka
100,000/- and multiples thereof at a time for five years only. Monthly provisional profit shall be
given to the Account just after completion of minimum 30 days from the date of opening of the
Account. The profit amount shall be adjusted on completion of each accounting year after
declaration of final rate of profit.
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4.2.9 Mudaraba Muhor Savings Account (MMSA)
As per Islamic Shariah, it is Fard for a husband to pay Muhorana to his wife. IBBL introduces
this Account for creation of opportunities to establish this Fard. Any conscious husband may
open Accont in the name of his wife for monthly installment of Tk. 500/-, Tk. 1,000/-, Tk. 2000/-
Tk. 3,000/-, Tk. 4,000/- and Tk. 5,000/- only in 5 years and 10 years terms.
4.2.10 Mudaraba NRB Savings Bond (MNSB) Account
The Non-Resident Bangladeshi (NRB) aged 18 years and above who have been serving abroad
and his family members will be eligible to purchase Mudaraba NRB Savings Bond maintaining
the denomination of Tk.25,000, Tk.50,000, Tk.1,00,000, Tk.2,00,000, Tk.5,00,000 and
Tk.10,00,000 in Bangladesh Currency for a period of 5 or 10 years term. An expatriate may
purchase this bond in the name of his/her minor children as per usual terms and conditions
applicable to other deposit products.
4.2.11 Students Mudaraba Savings Account (SMSA)
With a view to grow up savings habit among the minor students, to gather knowledge about
banking services and modern technology the Student Mudaraba Savings Account has been
introduced. Special privileges have been offered in this account. The privilege to the minor
students and encourage them to make savings in Banks that will be helpful for them to make a
big savings little by little for completion of higher education. Any guardian can open this account
in the name of students below 18 years of any educational institutions by showing Identity Card
with Tk.100/- as initial deposit only.
4.2.12 Mudaraba Farmers Savings Account (MFSA)
With a view to grow up savings habit among the farmers to involve them in banking transaction
considering their contribution to the financial activities, to bring them under the banking arena
and to increase Financial Inclusion of the country to encourage them to make savings in Banks
that will be helpful for them to make a big savings little by little to enhance their financial
strength at the time of their crucial need. This account can be opened by depositing Tk.10/- only
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4.2.13 Mudaraba Waqf Cash Deposit Account (MWCDA)
To implement your noble desire, this Account may create cash waqf at a time or may start with a
minimum deposit of Tk. 10,000/- (Taka ten thousand only) and the subsequent deposit shall be
made by installments(s) in thousand taka or in multiple of thousand taka. Profit of this account is
utilized for social and human welfare as per instruction of the account holders
4.2.14 Mudaraba Foreign Currency Deposit Account (MFCD)
This Account may be opened by depositing minimum US $1,000/- at designated Branches of the
Bank. Bangladeshi nationals residing, working and earning abroad, foreign national residing in
Bangladesh and also foreign firms registered abroad and operating in Bangladesh foreign
missions and their expatriate employees are eligible to open this Account. The Account-holder
will get profit as per rules and regulation.
4.3 Account Update

Those who opened account before 31 March 2011 are eligible to update their account according
to new rules of Bangladesh Bank, Accounts maintenance department, section 32, annexure
7(b).Otherwise their account will be temporary deactivated. Customers have to update account
for their own safety.
Documents needed to update an account

 Identification proof like National ID Card/Passport/Driving license
4.4 Account Transfer

Customer has to submit an application mentioning that he/she wants to transfer his/her A/C to his
desired Branch and the officer will verify the signature, Customer has to be certified by different
department of Bank that he/she has no liabilities to the bank. Then total particulars of A/C holder
will prepare and sent to the Customer's desired branch. Liability of Recognizer is secondary and
account holder is Primary.
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4.5 Account Closing
If the Customer wants to close his A/C, he writes an application to the manager urging him to
close his A/C. Different procedure is followed in cash of different types of A/C to close. Fixed
deposit A/c is closed after the termination of the period.
To close an account:
 Account holder requires applying in a specific form with full signature.

 He/she/they must surrender the unused leaves/cheque book provided by the bank.
 Verification of signature and approval by operation head.
 Close the account.
 On closure of the account, the bank will pay the credit balance (if any) of the account and
any profit due to the customer(s).
4.6 Issuance of cheque book
Cheque Book is issued to the new customer after opening account. A cheque requisition is
received from the customer for giving a new cheque book containing a specific number of pages
mentioned by customer. Two separate Cheque books are given for current and savings accounts.
AWCA Cheque book consists 50 and 100 leafs, while MSA Cheque book contains 20 leafs.
There is a Cheque issue register in this regard, where Cheque book numbers, leaf number, date
of issue, signature of the A/C holder etc, information are kept properly. All the necessary
numbers are sent to the computer department to give entry in the program.
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4.7 Cash Section
The cash section of IBBL plays very significant role in general banking department
because, it deals with most liquid assets. Basically cash department is the most vital and
sensitive department of the branch which deals with all kinds of
transaction in cash. All cash receipts and payments are made through this department. This
section receives cash from depositors and pay cash against cheques, draft, pay order (PO), etc.
over the counter. This section accepts cheques from the depositors for payment in cash. The
drawer who wants to receive money against cheque comes to the payment counter and presents
the cheque to the officer. He verifies the following information:
 Date of the cheque

 Signature of the account holder
 Material alteration
 Whether the cheque is crossed or not
 Whether the cheque is endorsed or not
 Whether the amount in figure and in word corresponds with each one
Then the officer checks the cheque from the computer for further verification. Here
is the following information that is checked.
 Whether there is sufficient balance or not

 Whether there is stop payment instruction or not
 Whether there is any legal obstruction or not
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4.8 Clearing and Bills section
A cheque is a bill of exchange drawn on a specified banker and not expressed to be

payable otherwise than on demand. [Section 6, Negotiable Instrument Act, 1881]
A cheque may be an open cheque (which can be presented for payment by the
holder) or a crossed cheque (which can be paid only through a collecting banker.)
Cheques of its customers are received for collection from other banks. In case of
receiving cheques, following points should be checked very carefully:
 The cheques should not carry a date older than the receiving date for
more than 6 months. In that case it will be a stale cheque and it will not
be allowed for collection.
 The amount in figure and words in both sides of the pay-in-slip should
be same.
 The name mentioned in the cheque should be same in both side of the
pay-in-slip and it should be the same with the name mentioned in the
cheque.
 The cheque must be crossed.
The place where banks meet and settle their dues is the clearing house.
4.8.1 Types of cheque
Inward clearing cheques: Inward cheques are those ones drawn on the respective
branch which have been presented on other banks and will be cleared/honored
through the clearing house. For example, the cheque drawn on IBBL, Head Office.
Outward Cheques: These cheques are received on the counter from other banks.
There are 3 types:
 Drawn on another branch of IBBL. These are called Outward Bills for Collection

(OBC).
 Drawn on another bank, which is situated in the clearing house area. This cheques
are called clearing cheque
 Drawn on another bank, which is situated outside the clearing area. This cheques
are also called as OBC.
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4.8.1.1 Outward Bills for Collection (OBC)
OBC are those cheques drawn on other banks which are not within the same clearing
house. An officer gives OBC seal on this type of cheques and later sends a letter to
the manager of the branch of the same bank located in the branch on which cheque
has been drawn. After collection of that bill, branch advice the concerned branch in
which cheque has been presented to credit the customer account through IBCA. In
absence of the branch, officer sends a letter to the manager of the bank on which the
cheque is drawn. That bank will send pay order in the name of the branch. This is
the procedure of OBC mechanism.
4.8.1.2 Inward Bills for Collection (IBC)
All clearing cheques are not received on the counter.Some cheques are received from other

source for collection. These cheques are received from other branch of
IBBL. These cheques are settled by sending IBCA.
4.9 Local remittance section
Sending money from one place to another place for the customer is another important service of
banks. And this service is an important part of country's payment system For this service, people,
especially businessmen can transfer funds from one place to another place very quickly.
There are six kinds of techniques for remitting money from one place to another place. These
are:
 Any Branch Banking Service

 Demand Draft
 Pay Order
 Telegraphic Transfer
 Telephone Transfer
 Mail Transfer
IBBL sells and purchases P.O, DD, and T.T. to its customers only. It does not offer remittance
service frequently to those other than its customer.
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4.9.1 Any Branch Banking Service
IBBL has introduced its Online Banking service since 2006.At this time IBBL has able to
connect in its entire 294 branch by online banking for providing the better customer service to
clients. Registration is required to get this service. It could be mentioned here that Online
Banking does not refer to internet Banking. It is basically ANY branch banking.
Services
 Cash Deposit
 Cash Withdraw
 Fund Transfer
 Account Statement
 Balance Inquiry
 Investment Recovery
Transaction Limit
 There will be no limit for Cash Deposit and Fund Transfer.

 For Cash Withdrawal, transaction limit will be Tk.10, 00,000 per day per account.
Charges
 Within the district for Cash Deposit / Withdrawal / Transfer Amount up to tk 20,000 is
charged by tk 15
 Within the district for Cash Deposit / Withdrawal / Transfer Amount abovetk 20,000 is
charged by tk 15+ 0.20 for next per thousand of part thereof.
 Inter Districtfor Cash Deposit / Withdrawal / Transfer Amount up to tk 20,000 is charged by tk
20.
 Inter Districtfor Cash Deposit / Withdrawal / Transfer Amount up to tk 20,000 is charged by
tk20.+ + 0.30 for next per thousand of part thereof
 Within the Divisional City Areafor Cash Deposit / Withdrawal / Transfer Amount up totk10,
00,000 charges is Free. But not more than 2 (two) times in a day.
 Vat will be applicable as per Govt. rule.
Depositor’s national id card’s photocopy is requied for above tk 5000 deposit.
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4.9.2 Pay Order (PO)
This is the service for the people. A person can do pay order transaction without having bank
account Pay Order an instrument which is used to remit money within a city through banking
channel the instruments are generally safe as most of them are crossed.
4.9.3 Demand Draft (DD)
Demand Draft (DD) is an instruction payable on demand. It is a negotiable instrument issued by

the branch of a bank containing an order to another branch of the same bank to pay fixed sum
money to a certain person or order of demand. This instrument can be purchased by a customer
from a particular bank for himself and can be handed over to the purchaser for delivery to the
beneficiary. The payee or beneficiary will claim the amount of money in the instrument by
producing the same to the concerned paying branch. Demand draft may be paid in cash to the
payee on proper identification or the amount may be credited to his account (in case of A/C
holder of the bank). Banks issue draft for nominal commission .The commission depends upon
the amount to be transmitted. The purchaser of the DD needs not to be a customer or account
holder of the bank.
Flow chart for a DD
Application Issuing branch Branch gives Purchaser sends

Submitted to prepares DD DD to DD to payee
branch purchaser
Paying branch Payee presents

pays the DD to branch
amount
4.9.4 Telegraphic Transfer (TT)
Telegraphic Transfer (TT) is another widely used mode for remittances of funds. TT is quicker
than DD. If an applicant wants to remit the amount urgently to the payee in another city or
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district he may request the issuing branch to send it by TT. For TT a branch sends a telegram
instead of airmail. The branch usually recovers from the telegram charges in addition to the usual
service charges. A TT could be express or ordinary and it is always sent in coded-form.
Corporate branch follows the following procedures in case of TT issuing-
 The customer deposits money in the branch.

 The customer obtains a cash memo containing TT serial number.
 TT serial number, notifying party name are mentioned in the telex massage.
 The telex department confirms transmission of the telex.
Points Pay Order Demand Draft Telegraphic Transfer

(TT)
Explanation Pay Order gives the Demand Draft is an Issuing branch

payee the right to order of issuing bank requests another
claim payment from on another branch of branch to pay
the issuing bank. the same bank to pay specified money to the
specified sum of money specific payee on
to payee on demand. demand by telegraph.
Payment Payment from issuing Payment from ordered Payment from ordered
branch only. branch. branch.
Generally used Within the clearing Outside the clearing Anywhere in the
to Remit fund house area of issuing house area of issuing country.
branch. branch.. Payee can also
be the purchaser.
Payment Payment is made Confirm that the DD is Confirm issuing

Process of the through clearing. not forged one. branch
paying bank
Confirm with sent Confirm Payee A/C.
advice.
Confirm amount.
Check the “Test Code”
Make payment. Make payment.
Receive advice.
Charge Only commission Commission + telex Commission+

charge Telephone
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4.10 Alternative Delivery Channel (ADC) Service
Islami bank provides its customers ADC service for better customer service. ADC helps to
provide banking service within short time. Customers can use ADC service for time consuming.
It is also very easy to use. ADC includes:
4.10.1 IDM service
IDM is deposit machine. Cash, pay order, cheque and different types of bills can be deposited
safely through this machine. After depositing money in IDM bank employee open it and fix the
cash in depositors account within 24 hours.
Convenience of IDM
 It is a helpful service for businessman. Through this they can keep their money safely in
bank any time.
 People can pay the bills, cash, cheque through the IDM machine.
 It can be used in holiday.
 It can be used 24/7.
 No need to fill deposit slips.
 No need to stand in long queues.
Process
 Account name, number and other details have to right on the envelope.
 Then enter the money into the envelope. Only 100 notes can be entered in each envelope.
 If the amount is high then more envelopes have to use.
 Denominate the amount on the envelope.
 Envelope should be closed.
 Then enter the branch name and account number on the machine.
 The machine will give a transaction number, write it onto the envelope.
 Then the screen will show small details about the transaction.
 After checking details press right or ok button. Then deposit window will open for 20
seconds, then the amount have to deposit.
 A deposit slip will be given by the machine.
So, it is an easy and helpful process for the customer as because they use it anywhere
anytime.
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4.10.2 ATM of IBBL
Full abbreviation of ATM is “Automated Teller Machine” which acts like a teller point in a
bank who takes and gives money over the counter. ATM is same as teller point but it run
automatically through identity like card and password. It does not need any slip or Cheque but
it is very much based on A/C holder’s ATM card and it’s Password. Those who are entitled
for ATM card, bank has provided them a password against every single card. This is like a
debit card. People can deposit their money in a bank account and they have entitled withdraw
their money through ATM card, which is applicable for 24 hours a day and 365 days in a
year. It has different name such as ATM, 24 hours banking card, money link card, e-cash,
ready cash etc.
IBBL has introduced its ATM Banking service since 2000. Being the largest in online
connectivity among the branches we are capable of providing the better customer service to
their clients.
IBBL Provides ATM facilities for its customers. IBBL ATM’s works 24/7. Customers who
have E-cards can access the ATM 24 hours. IBBLs ATM linked with Q cash, Visa and master
card network. Not only the customer of IBBL but also other customer of those networks can
access the IBBL ATM.
Advantages of Using a ATM Card Of IBBL
 It takes less time to complete a purchase

 It keeps you within budget
 They're easier to get than a credit card
 You can easily get cash
Cons of using ATM Card of IBBL
 Cannot access in all other bank’s booth

 Limitation of ATM booth rather than other bank
 Clients don’t know about the exact location of IBBL ATM booth.
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4.10.3 VISA CARD
Visa Debit is a major brand of debit card issued by Visa in many countries around the world.
Numerous banks and financial institutions issue Visa Debit cards to their customers for access to
their bank accounts. In many countries the Visa Debit functionality has been added to existing
ATM cards to allow customers to use the card for internet and point of sales transactions.
IBBL provide visa card to all its clients free for one year. New account holder of IBBL can get
visa card without any requisition & also old account holder can get visa card replacing their
previous ATM card. IBBL introduced its visa card in 2014.
Benefits of visa card of IBBL
Card benefits
 Explore the world of benefits that come with your Visa card.
Discounts
 Get the greatest deals from the greatest brands.
Card benefits
 Check out the all the perks with Visa credit or debit card.
Pay bills and taxes
 Easily pay bills, track spending and stay on budget.
Visa Checkout
 An easier way to pay online.
Travel with Visa
 Explore all the benefits and protections of traveling with Visa card.
Having a visa card in your wallet is a great tool for making convenient purchases. In this episode
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4.10.4 iBanking
Islamic Bank Bangladesh Limited has been devoted to serving its customers since inception. We
are committed to introduce new services and to make existing services faster and better than
ever. iBanking is a cornerstone of our strategy, designed to accelerate our commitment to green
banking and to enable customers to do banking at their own convenience. They have introduced
to new services to all iBanking customers that reflect their continuous endeavor to put the
strategy into action. Wherever their clients are, using iBanking now they can-
 Search FTT Message.

 Search FDD Payment.
 Transaction Summery.
 Clearing Instrument Status.
 iTrunsfer (Fund Transfer).
 iRecharge (Mobile Airtime Top Up).
 Wimax Recharge. (Banglalion, Qubee)
 Utility Bill Pay.
 Khidmah Credit Card- Bill Pay.
 Account No Withdrawal.
 Manage Cheque (Issue, Requisition & Stop Cheque Payment).
 ITransfer-EFT (Transfer to Other Bank).
 VISA Instant Payment.
4.10.5 Mobile Banking
Mobile banking refers to the use of a smart phone or other cellular device to

perform banking tasks while away from your home computer, such as monitoring account
balances, transferring funds between accounts, bill payment and locating an ATM.
Islami Bank mCash is the Mobile Banking of Islami Bank Bangladesh Limited where the
customers of any mobile company take the 24 hours of mobile banking services from
anywhere of the country without going to any branches mCash.
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Where and how the transactions will perform
Islami Bank mCash Account transactions can be performed at any branch of Islami Bank
Bangladesh Limited, any agent approved by Islami Bank Bangladesh Limited and mobile
network operators' approved agent where Islami Bank mCash signboard will be appeared.
Elements of mCash
 Cash in (deposit)
 Cash Out (Withdraw)
 Send Money (from one account to another)
 Mobile Recharge (Top-Up)
 Balance Check
 Mini Statement Check
 PIN Number Change
4.10.6 SMS Banking

SMS Banking is a type of mobile banking, a technology enabled service offering from Banks to
its customers, permitting them to operate selected banking services over there mobile phones
using SMS messaging.
Some features of SMS banking are following below-
 Account balance Inquiry

 Transaction Inquiry
 Password change
 Suspending self.
4.10.6.1 Advantages of SMS Banking of IBBL
I. Accessibility
The user, can access his banking information, from anywhere, as long as he has network
coverage on his mobile phone. In essence, SMS banking brings the information to the customer
by bringing the customer to the information.
II. Reduced Costs

Relatively, SMS Banking reduces the costs of performing a banking transaction, Relatively
Lower Cost of accessing information.
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III. Saves time

SMS banking reduces the time required performing an average banking trans-action; this is due
to the automation of everything and the fact that there is no human inter-venation.
4.10.6.2 Limitations of SMS Banking of IBBL

I. As a rule, length of a SMS message is 160 characters. This is a limitation in SMS
technology. Therefore the messages are abbreviated depending on the availability of the
space (Seylan Bank, n.d.).
II. The SMS technology (like email) does not guarantee set transmission times or
guaranteed delivery of the message, therefore some messages may be delayed, blocked
or lost .
III. The cost of the message is transferred to the sender, is based on the number of messages
being sent and is network dependent, although possibilities exist in reimbursing such cost
and operating volume based tariffs.
4.11 Locker Service

In order to get locker service must have to and savings account or others. There will be security
money for getting service for example; if key was lost another key will be provided.
Insurance will be provided against locker for any kind of harm or disastrous situation. There is
different size of locker against different amount of charges. Tk. 3600 for big size TK 2400 for
medium size & Tk. 1200 for small size.
By signing log book in banking hour locker can be use. Only documents, jewelry and other
valuable things can be kept except money and there is also security money against locker service.
Tk. 7000 for big, TK. 5000 for medium & Tk. 3000 for small one.
Services
 Personalized service
 Facilities to access outside scheduled time
 Parcel handling
 Safe custody of goods and bonds/shares
 Lockers available in various sizes. i.e. Small, Medium and Large.
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4.12 Dispatch section
4.12.1 Inward
Mail, other than those which are registered, marked confidential and addressed personally to
some official, may be opened by an authorized member or staff who should enter in the inward
mail register and mention serial number of the mail register on the letter/ paper received, affix,
“Received” date stamp on it and delivery the same to the concerned officials against
acknowledgement.
 Letters addressed personally to any official shall be opened by the addressee only.
 Registered mails and mails marked confidential will be opened by an officer or
management in small branches. All these letters shall however enter in the inward mail
registers.
 Stop payment instructions and court orders shall be received by authorized officials who
will immediately note date and time on it and take necessary steps.
4.12.2 Outward
 Outward letters must bear serial number and entry in the register with name and address.
 Each typist will maintain a typist master file and dispatch Clark also maintain a separate
master file for future record.
 Local letters may be delivered through peon book. If the area is large and letters are many
in number service of post-office may be utilized.
 Letters dispatched must be entered in the outward mail register and bear proper postal
stamps, if sent through post office.
 At the time of passing expenses voucher.
4.13 Establishment
Preparations of salary pay sheet, maintenance employee attendance & absent/leave register,
personal files and method of correspondence and payment of income tax. Strong vault rooms &
locker services are maintained for safeguard of valuable things & papers are maintained by this
section.
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Chapter 5
Analytical Aspect
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5.1 Analysis on the basis of quantitative of selected bank
5.1.1 Bank Wise deposit on 2014
Particular Amount (In Million Taka)

Islami Bank Bangladesh Limited (IBBL) 560696.30
Social Islami Bank Limited (SIBL) 124535.01
Al-Arafah Islami Bank Limited (AIBL) 166851.17
Source: Annual report of IBBL, SIBL, AIBL 2014
BANK WISE DEPOSIT ON 2014

AMOUNT IN MILLION
600000 560,696.30
500000
400000
300000
200000 166,851.17
124,535.01
100000
0
IBBL SIBL AIBL
Interpretation:
Above graph shows that the total amount of deposit of IBBL is higher than SIBL and AIBL
because of the expansion of branches over the country and delivery of superior customer service.
Total deposit of IBBL is 560696.30 and SIBL is 124535.01 and AIBL is 166851.17.
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5.1.2 Initial Deposit to Open Current and Savings Account
PARTIULAR IBBL SIBL AIBL
CURRENT ACCOUNT 1000 2000 5000
SAVINGS ACCOUNT 500 500 2000
Initial Deposit to Open Current and Savings Account

CURRENT
SAVINGS
6000
5000
5000
4000
3000
2000 2000
2000
1000
1000 500 500
0
IBBL SIBL AIBL
Figure 2 Initial Deposits to Open Current and Savings Account
Interpretation:
The initial amount to open a current account in IBBL is less than the other two banks SIBL and
AIBL. On the other hand the initial amount to open a savings account in IBBL and in SIBL is
similar of taka 500.Whereas, AIBL’s initial amount to open a savings account is higher than
other two banks.
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5.1.3 Maintenance Charge for Current and Savings Account Half Yearly
Maintenance Charge for Current and Savings Account Half

Yearly CURRENT
SAVINGS
600
500
500 450
400
300
300
200 200
200 150
100
0
IBBL SIBL AIBL
Figure 3 Maintenance Charge for Current and Savings Account Half Yearly
Interpretation:
Maintenance Charge for Current and Savings Account Half Yearly of IBBL is 450 & 200. On
the other hand the Maintenance Charge for Current and Savings Account Half Yearly of SIBL is
300 & 150.Whereas, Maintenance Charge for Current and Savings Account Half Yearly of AIBL
is 500 & 200. It shows that, IBBL savings account maintenance charge is higher than SIBL &
same as AIBL. And current account maintenance charge of IBBL is higher than SIBL and lower
than AIBL. So, we can say that, maintenance charge of IBBL is in satisfactory level.
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5.1.4 Account Closing Charge for Current and Savings Account Half Yearly
Account Closing Charge for Current and Savings Account Half Yearly
CURRENT
SAVINGS
350
300 300 300
300
250
200
200
150 150
150
100
50
0
IBBL SIBL AIBL
Figure 4 Account Closing Charge for Current and Savings Account Half Yearly
Interpretation:
The graph shows that, Account closing charge for current & savings account of IBBL & SIBL
are similar. On the other hand AIBL savings account closing charge is higher than both IBBL &
SIBL. AIBL’s current account closing charge is remaining same to other two banks. So we can
say that, IBBL account closing charge is moderate to its customers.
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5.1.5 Profit rate of Savings Account
SAVINGS ACCOUNT 4.2% 4% 4.5%
Profit rate of Savings Account

PROFIT RATE
5%
5%
4.20%
4%
4%
3%
IBBL SIBL AIBL
Figure 5 Profit rate of Savings Account
Interpretation:
Profit rate of Savings Account in IBBL is less than the AIBL & better than SIBL. Profit rate of
savings account in IBBL is 4.20% that is satisfy to the customers. So we can say that, profit rate
of IBBL is in moderate level.
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5.1.6 Number of Branches
PARTIULAR IBBL AIBL SIBL
Source: Annual report of IBBL, AIBL & SIBL 2014
Number of Branches
NUMBER OF BRANCHES
350
294
300
250
200
150
119
100
100
50
0
IBBL AIBL SIBl
Figure 5 Numbers of Branches
Interpretation:
Islami Bank Bangladesh limited has the highest number of branch between the other two banks.
The reach of IBBL is greater than other banks which is a major part of success for them. They
wanted to extend their business all over the country which the main reason for increased number
of branches.
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5.1.7 Number of ATM Booth
Number of ATM Booth

NUMBER OF ATM Booth
700
600
600
500 450
400
300
200 174
100
0
IBBL SIBL AIBL
Figure 7 Number of ATM Booth
Interpretation:
Number of ATM booth of IBBL is 450 that are lower than SIBL, to improve better customer
satisfaction IBBL have to increase their ATM booth. Because higher number of ATM booth can
easily give more customer satisfaction.
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5.1.8 Number of Total Account Opened

PARTIULAR IBBL AIBL SIBL
Number of Total Account Opened 95,87,458 37,95,255 11,27,685
12000000
Number of Total Account Opened
Number of Total Account Opened
10000000
9587458
8000000
6000000
3795255
4000000
2000000
1127685
0
IBBL SIBL AIBL
Figure 8 Number of Total Account Opened
Interpretation:
Number of total account opened of IBBL is 95, 87,458 that is higher than SIBL & AIBL. Here
we can see that, IBBL’s total number of account opened is higher than both SIBL & AIBL.
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5.2 QUESTIONNAIRE ANALYSIS
5.2.1 Employees of IBBL provide friendly service?
Employees of IBBL provide friendly

service?
5%
5%
30% STRONGLY DISAGREE
15% DISAGREE
NEUTRAL
AGREE
STRONGLY AGREE
45%
Interpretation:
The graph shows that, majority of the respondents are agreed on that, the IBBL employees
provide friendly services.45% believes that.30% people strongly agreed on the fact.15% peoples
hold neutral expression about the question. Only 5% peoples disagreed about the fact. 5%
strongly disagreed about the question. So, overall with this survey I can conclude the IBBL
employee services are friendly as the 45% agreed people and 30% strongly agreed on the fact.
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5.2.2 Employees of IBBL can efficiently solve customer problem?
Employees of IBBL can efficiently solve customer

problem?
5%
25% 15%
STRONGLY DISAGREE
DISAGREE
NEUTRAL
AGREE
STRONGLY AGREE
25%
30%
Interpretation:
The graph shows that, majority of the respondents are agreed on that, Employee of IBBL can
efficiently solve customer problem. 30% believes that. 25% people strongly agreed on the
fact.25% peoples hold neutral expression about the question.15% people disagreed about the
question & about 5% are strongly disagreed with this statement. So, overall with this survey I
can say that, Employee of IBBL can efficiently solve customer problem, because 30% agreed
people and 25% strongly agreed on the fact.
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5.2.3 Is it easy to open account in IBBL?
Is it easy to open account in IBBL?
10% 10%

25% DISAGREE
NEUTRAL
AGREE
STRONGLY AGREE
35%
Interpretation:
The graph shows that, majority of the respondent are in neutral position in this statement. 25% of
respondent are disagree 20% are agree and both 10% peoples are strongly agree & disagree.
Opening account is going some procedure. So some people can’t take it easily. So we can say
that, account opening is complex in IBBL.
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5.2.4 New cheque book issuance time of IBBL is acceptable?
New cheque book issuance time of IBBL is acceptable?
30%
35%
STRONGLY DISAGREE
DISAGREE
NEUTRAL
AGREE
STRONGLY AGREE
35%
Interpretation:
The graph shows that, majority of the respondents are strongly agreed on that, new cheque book
issuance time of IBBL is acceptable. 35% believes that.35% people also agreed on the fact.30%
peoples hold neutral expression about the question. No people disagree or strongly disagreed
about the question. So, overall with this survey I can conclude the new cheque book issuance
time of IBBL is acceptable as per survey report said.
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5.2.5 Pay order issuance time of IBBL is acceptable?
Pay order issuance time of IBBL is acceptable?
10% 8%
12%
STRONGLY DISAGREE
DISAGREE
33% NEUTRAL
AGREE
STRONGLY AGREE
37%
Interpretation:
The graph shows that, majority of the respondent are in neutral position in this statement, 37%
peoples believes that. 33% of respondent are agreed 12% are disagree, 10% peoples are strongly
agree & 8% people are disagree. Opening account is going some procedure. So some people
can’t take it easily. So we can say that, pay order issuance time is acceptable in IBBL.
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5.2.6 New Visa Card issuance time of IBBL is acceptable?
New Visa Card issuance time of IBBL is

acceptable?
18% 15%
STRONGLY DISAGREE
DISAGREE
18% NEUTRAL
AGREE
22% STRONGLY AGREE
27%
Interpretation:
18% people strongly believe that, new visa card issuance time of IBBL is acceptable.22% agreed
with that. 27% peoples hold neutral position, 18% peoples disagree with this statement & 15%
people strongly disappointed with this. So, we can say that, New VISA card issuance time is not
complex.
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5.2.7 ATM service of IBBL is good
ATM service of IBBL is good
5%
15%
30%
STRONGLY DISAGREE
DISAGREE
NEUTRAL
AGREE
25% STRONGLY AGREE
25%
Interpretation:
The graph shows that, majority of the respondents are strongly disagreed on that, ATM service
of IBBL is not good. About 30% believes that.25% people disagreed on the fact.25% peoples
hold neutral expression about the question. Only 15% peoples agreed about the fact. Only 5%
people strongly agreed about the question. So, we can say that, IBBL have to more concern to
build more ATM booth & improve ATM machine for better customer satisfaction.
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5.2.8 Service charge is good enough in IBBL?
Service charge is good enough in IBBL?
8%
12%
35%
STRONGLY DISAGREE
DISAGREE
NEUTRAL
20% AGREE
STRONGLY AGREE
25%
Interpretation:
The graph shows that, majority of the respondents are strongly agreed on that, Service charge is
good enough in IBBL 35% believes that.25% people agreed on the fact.20% peoples hold neutral
expression about the question.12% peoples disagreed about the fact. Only 8% strongly disagreed
about the question. So, overall with this survey I can conclude the service charge is good enough
in IBBL as the 35% strongly agreed people and 25% agreed on the fact.
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5.2.9 Waiting time to get service from IBBL is longer?
Waiting time to get service from IBBL is longer?
15%
25%

DISAGREE
NEUTRAL
AGREE
15% STRONGLY AGREE
35%
Interpretation:
The graph shows that, majority of the respondents are strongly agreed on that, Waiting time to
get service from IBBL is longer 35% believes that.25% people agreed on the fact.15% peoples
hold neutral expression about the question.10% peoples disagreed about the fact. Only 15%
strongly disagreed about the question. So, overall with this survey I can conclude that, IBBL
have to concern about their customer service & more efficient about their work for fast service to
their customer.
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5.2.10 Information of IBBL is available to the customers?
Information of IBBL is available to the customers?
10% 10%
20% 20% STRONGLY DISAGREE

DISAGREE
NEUTRAL
AGREE
STRONGLY AGREE
40%
Interpretation:
The graph shows that, majority of the respondent are hold neutral position in this statement, 40%
peoples believes that. Both 20% of respondent are agreed & disagreed, both 10% peoples are
strongly agreed & disagreed. So, we can say that, it is very conflict to justify answer.
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5.2.11 Are you found freedom in your banking activities?
Are you found freedom in your banking activi-

ties?
10%
20%

DISAGREE
NEUTRAL
AGREE
STRONGLY AGREE
30%
25%
Interpretation:
The graph shows that, majority of the respondents are agreed on that, 30% believes that they
found freedom in their banking activities. 25% people say neutral on the fact.20% peoples
strongly agree about the question.15% peoples disagreed about the fact. Only 10% strongly
disagreed about the question. So, overall with this survey I can conclude the IBBL’s customer
found freedom in their banking activities as the 30% agreed people and 20% strongly agreed on
the fact.
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5.2.12 Customer satisfaction from the service of IBBL?
Customer satisfaction from the service of IBBL?
10%
30%
STRONGLY DISAGREE
DISAGREE
NEUTRAL
AGREE
STRONGLY AGREE
60%
Interpretation:
The graph shows that, majority of the respondents are agreed on that, Customer satisfaction from
the service of IBBL is high. 60% believes that.30% people also strongly agreed on the fact.10%
peoples hold neutral expression about the question. No people disagree or strongly disagreed
about the question. So, overall with this survey I can conclude that customer satisfaction from
the service of IBBL is very satisfactory level as per survey report said.
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Chapter 6
Findings, Recommendations,
Conclusion
6.1 Findings
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 Initial deposit to open account in IBBL is lower than that of other banks.
 Islami Bank has the height number of branches all over the country and give proper
customer satisfaction both urban & rural areas.
 Number of total account opening in 2014 is higher than that of other banks.
 The agent of mCash is not available, for this reason customers do not get proper service.
 Number of ATM booth is insufficient as needed. Internet banking system is not working
in spite of launching officially.
 Employees of IBBL are much helpful & dedicated to their customers.
 Customers do not get sufficient support to complete account opening procedure.
 New cheque book issuance system of IBBL is good than other banks. IBBL’s employees
provide NON-MICR cheque if customer need urgent withdrawn before his cheque
requisition time.
 Service charge of IBBL is good enough to its customers as maximum client said.
 Waiting time to get service from IBBL is longer than other banks.
 Most of the customers are satisfied about the overall banking activities of IBBL.
6.2 Recommendations
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For the improvement of the service, customer satisfaction, performance of IBBL some steps
should be taken. Here are some of the step which can be effective for the bank to improve its
image in customers mind. These are discussed below:
 IBBL is pioneer of Islami banking system in the private sector in Bangladesh. So, IBBL
should hold this reputation by giving more customer satisfaction.
 IBBL should increase manpower in account opening section for improve efficient
customer service & solve customers’ problem.
 IBBL needs to aware its new customer about “what type of document needed to open
bank account” for these, they can easily solve various problem while opening bank
account, such as introducer problem, nominee NID photocopy etc.
 For the popularity of mCash service IBBL should increase its agent.
 Information technology department need to take proper steps to improve its website for
better access of the website.
 IBBL should improve & take proper maintenance of ATM machine all over the country.
Also easier ATM service facilities should be established.
 IBBL have to more concern about its internet banking. IBBL can promote its internet
banking through magazine, TV, online portal & social networking site.
 IBBL has huge customer than other banks. It seems very difficult to give proper services
within short time. So, IBBL needs to increase more cash counter for faster customer
services.
6.3 Conclusion
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The Banking arena in recent time is one of the most competitive business fields in Bangladesh.
As Bangladesh is a developing country, a strong banking sector can change the socio economic
structure of the country. So we can say the whole economy of the country in linked up with its
banking system. IBBL is the bank which is highly potential commercial Bank of Bangladesh.
This bank performs hundreds of important activities both for the public and for the government
as a whole.
Islami bank is a well-organized and promising private bank in Bangladesh which believes in
advancement of growth by providing quality services. In our country, from 1983 IBBL has been
operating with great confidence. As a large Islamic commercial bank, it took various steps to
create employment and socio-economic development for the downtrodden people through
Islamic rules and regulations.
Islami Banks are those who do not charge interest, rather they do business on profit sharing
basis. Islamic bank provides noteworthy facilities to the clients than that of the conventional
banks. This bank is trying to operate their activities according to Islamic Shariah. From this
discussion it proves that interest is a curse. We have to take necessary steps to remove all
problems that stand as a great obstacle before Islamic banks as early as possible for the
development of Islamic banks.
------------------------------------------------
References:
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1. C.R Kotheri, “Research Methodology” Second Edition, 2003-2004, wishwa Prakashan,

Calcutta, India
2. Annual report 2014 of Islami Bank Bangladesh Limited
3. Islami Bank Bangladesh Limited website : http://www.islamibankbd.com/
4. Brochure of schedule of charge of Islami Bank Bangladesh Limited, Social Islami Bank
Limited & Al-Arafah Islami Bank Limited.
5. Annual report 2014 of Social Islami Bank Limited
6. Annual report 2014 of Al Arafah Islami Bank Limited
Appendix
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Bachelor of Business Administration
Bangladesh University of Business & technology (BUBT)
(For study intention only)
This is the formal questionnaire developed to collect information from you for preparing an
internship report regarding the topic general banking activities of Islami Bank Bangladesh
Limited. In this regard, we are expecting authentic support from you as a valuable respondent.
We are promising that, your given information will be kept secret and not will be misused.
Questionnaire Survey
(Personal details of the respondent)
Section A
1. Name :
2. Age :
3. Gender : Male Female
4. Occupation : Business Service Student Housewife Others
Section B
5. What type of account do you have?

a) Saving
b) Current
c) DPS
d) Others
6. How long have you been a customer of IBBL
a) 0-3 years
b) 3-5 years
c) 5-10 years
d) Above 10 years
7. What is your opinion about online service of IBBL

a) Excellent
b) Good
c) Moderate
d) Poor
Put a Tick mark (√)that best reflect your opinion:
Page | 84
Shovon
SlNo Questions Strongly Disagree Neutral Agree Strongly
Disagree Agree
1 2 3 4 5
1. Employee of IBBL provides friendly
service?
2. Employee of IBBL can efficiently
solve customer problem?
3. IT is easy to open account in IBBL
4. New cheque book issuance time of
IBBL is acceptable?
5. Pay order issuance time of IBBL is
acceptable?
6. New Visa Card issuance time of
IBBL is acceptable
7. ATM service of IBBL is good
8. Service charge is good enough in
IBBL
9. Waiting time to get service from
IBBL is longer?
10. Information of IBBL is available to
the customers?
11. Are you found freedom in your
banking activities?
12. Customer satisfaction from the
service of IBBL?
Thank You for Your Collaboration
Page | 85

Internship Report On General Banking of Islami Bank Bangladesh Limited

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3.5 RIBA and its basic features 26

4.7 Cash Section 40

5.2.2 Employees of IBBL can efficiently solve customer problem? 63

1.2 Background of the Study

Islami Bank Bangladesh Limited has significantly contributed in flow of international

1.3 Origin of the Report

As a part of the Bachelor of Business Administration (BBA) course requirement, it is a 12 weeks

 To get organize detail knowledge on the job responsibility.

1.4 Scope of the Study

1.5 Objectives of the Study

The broad objective

The specific objectives

1.6 Methodology of the study

The methodology of report is given below:

2. Sources of data collection

Questionnaire is a research instrument & it is very easy to collect data.

i. Type of interview method

Face to face interview is conducted to collect information.

ii. Type of Question

There are twelve questions in the questionnaire.

1.7 Limitations of the Study

2.1 Origin of IBBL

 To establish Islamic Banking through the introduction of a welfare

IBBL’s vision is to always strive to achieve superior financial performance, be considered a

 To establish and maintain the modern banking techniques, to ensure soundness

2.4 Strategic Objectives

 To ensure customers' satisfaction.

2.5 Features of IBBL

Chapra (1985, PP.154-57) has outlined six essential differences as below:

distinguishing feature of an Islamic bank must be that it is interest-free.

conceived to be a crossbreed of commercial and investment banks, investment trusts and

investment -management institutions, and would offer a variety of services to their

maturity of their liabilities with the maturity of their assets.

 More careful evaluation of investment demand: Another very important feature of an

oriented financing. It is customary that conventional banks evaluate applications,

and eliminates a whole range of undesirable lending practices.

2.6 Special Features of IBBL

 Investment is made through different modes as per Islamic Shariah.

2.7 Core Values

 Trust in Almighty Allah

2.9 Functional Department of IBBL

2.10 Different Product and Services

2.10.1 Deposit Products

1. Deposit Products in Local Currency

2. Deposit products in Foreign Currency

2.10.2 Investment Products & Schemes

2. Welfare-oriented Investment Schemes

2.10.3 Remittance Products & Services

1. Foreign Remittance Products

2.10.4 Services of IBBL

 Investment facilities against this A/c (Corporate guarantee/certificate

3. Other Value Added Services

 Payment Order (PO)

 International: Officials of Foreign Banks on Islamic Banking

2.11 Organ Gran of Islami Bank Bangladesh Limited

SHARIAH SUPERVISORY REVIEW COMMITTEE

BOARD OF DIRECTORS, CHAIRMAN

ZONES & CORPORATE BRANCHES

Executive Vice President

Senior Vice President (SVP)

Vice President (VP)