AN INTERNSHIP REPORT ON

THE ACTIVITIES OF CA FIRM (A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS of echeOF BUSINESS ADMINISTRATION WITH SPECIALIZATION IN MARKETING)

Prepared For: Professor Md. Ashraf Hossain Dean, School of Business Asian University of Bangladesh

PREPARED BY
Md. Deloar HOSSAIN

ID# 200930350 26th Batch MBA Program Asian University of Bangladesh

Letter of Transmittal
To

Professor Md. Ashraf Hossain Dean, School of Business Asian University of Bangladesh

Subject: Letter regarding Submission of a report on Overall Banking Operations of Social Islami Bank Limited.

Dear Sir, It is my pleasure to submit the dissertation entitled Overall Banking Operations of Social Islami Bank Limited. Which was assigned to me as a requirement for the Master of Business Administration Degree? I have prepared this report based on my experience and exposure to Overall Banking Operations of Social Islami Bank Limited. (SIBL) as a sample Bank. It is a great pleasure for me to present you this report. I shall be glad if this report serves the purpose of my dissertation, I am ready to explain anything to you if you feel necessary.

I pray and hope that you would be kind enough to accept the report and oblige thereby.

Thanking you in anticipation.

Yours obediently

Md. Deloar Hossain 26th Batch of MBA ID No.200930350 Asian University of Bangladesh

ASIAN UNIVERSITY OF BANGLADESH DHAKA, BANGLADESH

Declaration

I do hereby solemnly declare that the study presented herein has been carried out by me and has not been previously submitted to any other University / Institution for an academic qualification. I further undertake to indemnify the University against any loss or damage arising from breach of the forgoing obligation.

Signature

Students Name ID No MBA Date Campus

: Md. Deloar Hossain : 200935350 : 26th Batch : 23/09/2010 : Asian University of Bangladesh Uttara, Dhaka

ASIAN UNIVERSITY OF BANGLADESH

Uttara, Dhaka

Certificate of Approval
This is to certify that the study report on Overall Banking Operations of Social Islami Bank Limited is the bonafide records of the study done by Md. Deloar Hossain for partial fulfillment of the requirements of the degree of Master of Business Administration (MBA) major in Marketing from Asian University of Bangladesh (AUB).

This study report has been carried out under my guidance and is a record of the successful effort.

I wish him every success in life.

Professor Md. Ashraf Hossain Dean, School of Business

Department of Business Administration Asian University of Bangladesh Uttara, Dhaka

Acknowledgement

In the process of preparing this report, I received lot of co-operations from number of faculties and individuals whose names are not possible to mention in this report but I would remember at least some of them with heartfelt appreciation and gratitude. Firstly, I would like to express my cordial sense of gratitude and indebtedness to my respectable Prof. Md. Ashraf Hossain, Dean, School of Business, Department of Business Administration, Asian University of Bangladesh for his constant and must cooperative guidance, encouragement and valuable suggestions to complete this study report. These were the sources of my inspiration. I also thank all the concerned officials of Social Islami Bank Ltd. for extending full co-operation in supplying data and information for writing the report.

Certainly, I remember the contribution and co-operation of the authority of AUB.

However, I take full responsibility for any omission or error which might have crept in this report beyond my knowledge.

Students Name ID No MBA Campus

: Md. Deloar Hossain : 200935350 : 26th Batch : Asian University of Bangladesh Uttara, Dhaka

Executive Summary

The report represents the 3-month working experience on Social Islami Bank Limited (SIBL). This report gives a clear idea on the activities, the operation strategies, and the performance of SIBL. SIBL incorporated in 5th July 1995 and being into its commercial operation on 22nd November with a view to provide exclusive service facilities to its client and accordingly meet the demand of banking service all over Bangladesh. During the short span of its operation the bank had been widely acclaimed by the business community from small business persons to industrial conglomerates for forward looking business outlook and innovative financial solution. This report covers seven chapters, viz. Introduction, , Organization, Branch Operation, Online Banking, Performance Analysis, SWOT Analysis, Conclusions. Chapter one shows the origin of report: The MBA program conducted by Asian

University of Bangladesh was introduced in order to provide a number of fresh graduates in business sector; this program has been designed to facilitate the students and the executive to provide basic theoretical knowledge and practical in the job activities in the context of Bangladesh. This report on practical orientation has been originated above thinking. Scope of the Study: The area of concentration of this report is confined in investigating different aspects of the banking transaction as well as problems and prospects and by this way an endeavor is made to give recommendations for removing the problems. Objective of the Study: This study is aimed at providing me invaluable practical knowledge about banking operation system especially Islamic banking in Bangladesh. Area of study: I studied all the main three functional areas of the bank. They are: General Banking, Foreign Exchange, and Credit Area. Limitations of the study: It is obvious that every study has some limitations. Analysis of data: There are fourty-two branches of SIBL throughout country. Among them eighteen branches are in Dhaka city and others are in different districts of the country.

Chapter two shows Organization (a).Historical Background of SIBL: The bank operates as a scheduled bank under a banking license issued by the Bangladesh Bank, Central Bank of the country. Bank started its operation from 22, November 1995.(b) Formation of Social Islami Bank(c) Formation (d) Branches: At present, 42 ( fourty two) branches are in operation all over the country.(e) Capital Structure(f)Objectives &Goals of SIBL(g)Mission of SIBL: Social Islami Bank Limiters business mission is to assist the business development of private sector institutions, industry, and household.(h)Vision of SIBL: , "Reduction of Poverty Level" is our Vision, which is a prime object as stated in Memorandum of Association of the Bank with the commitment "Working Together for a Caring Society".(i)Functions of SIBL(j)Balance Sheet(k)Operating Performance: General banking is the front-side banking service department General banking is the front-side banking service department. Total Operating Income of the Bank as on 31st December 2009 stood at Tk. 1717.64million against Tk. 1291.71of the preceding year. The Bank made an operating profit of Tk. 1064.30million in 2009 against Tk. 787.36million of 2008. Chapter three shows Branch Operation-(a) General Banking Area: General banking is the front-side banking service department. SIBL General banking is divided into five sections. 1) Account opening section. 2) Bills and clearing section. 3) Remittance section. 4) FDR section. 5) Cash section (b)Foreign Exchange Banking Area: Foreign Exchange Banking Area has three steps such as 1. Foreign Exchange2. Foreign Remittance 3.Credit Banking Area Chapter four shows Online Banking: 1) Online banking isn't out to change ones money habits. Instead, it uses today's computer technology to give people the option of bypassing the time-consuming, paper-based aspects of traditional banking in order to manage finances more quickly and efficiently.2) Origin of online banking: The advent of

the Internet and the popularity of personal computers presented both an opportunity and a challenge for the banking industry.3) Brick-to-click banks.4) Virtual banks: Virtual banks pass the money they save on overhead like buildings and tellers along to you in the form of higher yields, lower fees and more generous account thresholds.5) SIBL will get advantage from online banking.6) Feature that can be give in SIBLs Online Banking . Chapter five shows Performance Analysis: 1) Performance Of The Bank (SIBL): I take this opportunity to place before you the present overall operational of the Bank.2) Deposit:: Since deposit is the life blood of the bank, we drew-up series of action plan, both short term long term to raise the deposit base of the bank in line with the directives of the Bangladesh Bank. 3)Investment 4)Liquidity 5) Foreign Exchange Business: Foreign Exchange Business stood at Tk.39110.00 million in 2009 as against Tk.33363.20 million in 2008.6) Advances: Global investment of SIBLin the year 2009 showed a very favorable growth both in quantity as well as quality.7) Import business: The bank was involved in financing import business in the field of capital machineries ,industrial raw materials, food grains (rice,wheat,sugar,dal,garlic,onion,spices,)oil(soybean,palm,lubricant),motor vehicles, spare parts, garments accessories, sports items, perfumery items,chemicals,milks food etc.8) Export business: The export was conspicuous in the field of ready made garments. The bank has been endeavoring to diversify its export financing in other fields like leather, agricultural products, dry fish, PET Flakes, spare parts of ships etc.9)Comments: Though Social Islami Bank Limited is a new bank, which started its operation in the last half of the year 1995; it has now become a reputed Bank. Chapter six shows- SWOT Analysis means a) Strength b) Weakness c) Opportunity d) Threats . finding: Whatever I found during my internship activities is really a practical work environment that I didnt find earlier. Chapter seven shows: Conclusions: Taken all in all, it can be safely said that SIBLs action program is directed towards development of an authentic participatory Economy beyond Market Economy. The family empowerment credit program of Social Islami Bank is gaining ground at the grass root field level in Bangladesh. Family Empowerment micro credit and micro enterprises program must be designed in a manner so as to make a) finance, b) production, c) marketing, d) trading, e) local specific survey and research as well as moral suasion in one package.

Finally, recommendation: I had several frank discussions with the clients and officials, which has helped me to know about the aforesaid findings and draw the following recommendation. Need to introduce online banking immediately. If it is not possible to introduce among all branches then introduce in Dhaka, Chittagong initially.
SIBL should improve its service quality; otherwise it will fall back of other

private commercial bank. Social Islami Bank may also indulge in Tele Marketing. This will facilitate them to expand their sale.
SIBL should improve its service quality; otherwise it will fall back of other

private commercial bank. SIBL can introduce health facility for their employees. It will motivate them more
In foreign banks, they use printed Pay Order, Pay Slip, and DD. It looks good

and gentle. So it will be good if print them. SIBL should differentiate its services adopting the modern facilities and diversify product. Social Islamic Bank should always monitor the performance of its competitors. Evaluate customers needs from their perspective and explain logically the shortcomings. Use of effective management information systems
Effective discipline for all branches.

RECOMMENDATIONS
The banks are actually service organizations. The main objectives of the world famous and successful banking organizations are to making of profit through addressing the clients time to time with new pieces of service instruments. However my little experience earned through this internship program took me to customers varying demands. I had several frank discussions with the clients and officials, which has helped me to know about the aforesaid findings and draw the following recommendation

Need to introduce online banking immediately. If it is not possible to introduce among all branches then introduce in Dhaka, Chittagong initially. Social Investment Bank may also indulge in Tele Marketing. This will facilitate them to expand their sale. SIBL should pursue an aggressive marketing to come up into limelight. Campaign in order to build up a strong image reputation among the potential customers. Campaign such as ad in the newspaper & magazine, billboard, neon signs, publicity message. SIBL can pursue promotion campaign with its customers particularly the corporate clients to build up a strong rapport. TV ad is also a major method for attracting the potential customers. As it is a old bank, a strategy of exposing the bank to the public must be taken so that general people will aware about the emergence and growth of the bank. Sponsor in organizations picnic and arrange or sponsor in cricket match can be method of advertise. SIBL provides car facility to its high officials. Give ad of banks in those cars can be method of marketing. Then people will see the ad in road and remember there is a bank name Social Islamic Bank Limited.

 All the foreign banks and other private commercial bank has Customer relation/support/service officer in all branches. They sit in front of branches they solve customers problem, answer inquiry of customers etc. SIBL should appoint customer service officer in all branches.
SIBL should improve its service quality; otherwise it will fall back of other

private commercial bank.

Enhance of remuneration package- The present compensation package at

SIBL is very unimpressive and not capable to attract quality personnel to fill up its position. Many skilled and devoted officers of the bank are depressed with their compensation package. The foreign banks and other private banks are pay more than the SIBL. This is the time that the management should consider revise the remuneration package in order to attract quality human resource.
SIBL can introduce health facility for their employees. It will motivate them

more. People need identification. All of private banks has ID for their employee even in government offices, they also use ID. It is another kind of marketing also. So SIBL should print ID for their officer. In foreign banks, they use printed Pay Order, Pay Slip, DD. It looks good and gentle. So it will be good if print them. SIBL should differentiate its services adopting the modern facilities and diversify product. Bank should provide advances towards the true entrepreneur with reconsidering conventional system of security and collateral, moreover, the whole process should be completed within an acceptable time. The synergy of dedicated manpower, technology, market opportunity can lead the organization to achieve the goal, a bank must establish and adhere to adequate policies, practices and procedures for evaluating the quality of asset and the adequacy of loan provision and reserve.
Social Islamic Bank should always monitor the performance of its competitors.

 Evaluate customers needs from their perspective and explain logically the shortcomings.
Use of effective management information systems.

To deliver quality service top management should try to mitigate the gap between customers expectation and employees perception. Use appropriate techniques in evaluating customer need and convenience professionally.
Effective discipline for all branches.