Investment Credit Management

Al-Arafha Islami Bank Limited
1Introduction
1.1 Origin of the Report
Internship is an academic requisite for the student of BBA. For this reason, University of Information Technology & Sciences has introduced an internship program as a requirement for the degree of BBA. As a student of Finance I completed my internship program mainly !ased on financial organi"ations. This program is fully managed and supervised !y the respected supervisor. For the reason, I #as sent to A$%Arafah Islami Ban& $imited, 'a(shahi Branch under the direct supervision, )eem 'afiul *oq, $ecturer, department of Business Administration, University +f Information Technology & sciences ,UITS-. The topic selected !y my honora!le teacher #as Investment .redit )anagement of AIB$, 'a(shahi Branch. I had to stay there three months from /st 0anuary, 12/3 to 4/st )arch, 12/3. I #as introduced to )d. Syful Islam, )anager of AIB$, 'a(shahi Branch. Being introduced to the officers of AIB$, 'a(shahi Branch, I have collected information. It is possi!le only for their cordial help. This internship program is the first professional and practical e5perience of mine. I have en(oyed it perfectly. I have tried my level !est to apply my e5perience to prepare this report. This is the report #hich is required to fulfill my academic lessons.
Being a student of Finance I have acquired &no#ledge a!out the practical side of theoretical learning, #hich can !e acquired from the finance and !an&ing related !oo&s. After ta&ing practical training I have prepared a report. Though I have got an overall idea a!out !an&ing, I have emphasi"ed mainly on 6Investment .redit )anagement7 of AIB$, 'a(shahi Branch.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [1] + "(I!N(!"
Internship [1] Internship Report 2011Report 201,
1.2 Objective Of The Study

The main purpose of this study is analy"ing the analysis of Investment of AIB$, 'a(shahi Branch and to provide some suggestions to improve its performance. *o#ever, the follo#ings are some of the specific o!(ectives of the study8 /. To identify various investments, provided !y the !an&. 1. To determine the various sources of investments fund. 4. To determine the su!sequent progression or depression of the !an& in terms of investments. 3. To &no# the security valuation system !efore providing investment. 9. To &no# the criteria of classifying various investment schemes. :. To e5amine the investment monitoring system of the !an&. ;. To suggest remedial measures in the light of my analysis and interpretation. <. To &no# a!out the latest services offered !y the !an&. =. +!serve the mar&et in #hich the !an& operates. /2. Find out the comparative position of the !an&. //. To &no# the culture and human resource of the !an&.
1.3 Scope Of The Study

Analysis of investment in an organi"ation is one of the important parts of overall performance evaluation. Investment includes providing support and advances, !alancing liquidity and profita!ility, recovery of investment, classification of investment, etc. This study is necessary to sho# #hether a firm #ill a!le to meet its o!ligations and #hether a firm operates in a profita!le manner.
1.4 Methodology Of The Study

Study e!ign" The report #as fully investigative in nature. >ata have !een collected from !oth primary and secondary sources. The methodology of the report includes direct o!servations, oral communications #ith the employees of the !an&, intervie#ing the officers and e5ecutives, studying files, circulars, etc. The report includes !oth quantitative as #ell as qualitative data. In this report, no hypothesis is considered. In order to prepare the assigned pro(ect paper I have collected necessary information !y the follo#ing #ays8 ,a,!?rimary source of information Secondary source of information
Primary source of information The ?rimary sources of information are A@) A5ecutive +fficers Senior +fficers Secondary source of information The Secondary sources of information are Statements of affairs. Barious statistical charts & graphs of the !an&. ?u!lished papers on overall positions. Barious !oo&s and (ournals. )aterials and documents of the !an& Ce!site of !an&. Some articles. Bangladesh Ban& .ircular.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [-] + "(I!N(!" Internship [-] Internship Report 2011Report 201,
@eneral information a!out !an&ing institutions.
Sources of Data Collection

(A) Primary sources of data: The data, #hich is collected directly, is called primary data. Chen someone is searching in the field directly for collecting data, it is called primary source of data. I have collected data from primary sources using the follo#ing methods8 (1) Observation Met od: +!servation method may !e defined as systematic vie#ing. According to concise +5ford >ictionaryD 6accurate #atching, noting of phenomena as they occurs in nature #ith regard to cause and effect and mutual relationship7. I #ent to the AIB$, 'a(shahi Branch and visited for the purpose of searching Investment aspects and management. All the activities of management of this !an& have !een o!served. Though #e have collected huge num!er of data a!out Investment management from the Ban&, #e understood limitations for collecting data through this method. (!) "ntervie# Met od: The intervie# is a face to face interpersonal situation in #hich one person, the intervie#er, as&s a person !eing intervie#ed, the respondent, question designed to o!tain ans#er pertinent to the pro!lems. In order to have the real information and data a!out Investment Analysis, I #ent to the !an& and gathered a lot of data and information through intervie# method. ($) %uestionnaire Met od: Euestionnaire method is #idely used to collect data. The real data is collected through questionnaire method. Cith the purpose of collecting data, a questionnaire #as prepared according to the direction of our supervisor a!out Investment .redit )anagement of AIB$, 'a(shahi Branch. The questionnaire is given at the end of the report.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [,] + "(I!N(!"
Internship [,] Internship Report 2011Report 201,
(&) Secondary Source of Data: Chen data is collected from indirect source, it is called secondary source of data. To collect data from the secondary sources, it includes8 Barious annual audit reports. Boo&s, )aga"ine and papers. Statistical report. 'eport and document etc.
Analysis of 'uestionnaire: There are many techniques of analysis of the questionnaire. Ce as&ed those questions a!out different types of account, investment dis!ursement and recovery, (ournal, ledger, a!stract, various types of vouchers, right safety etc. The a!ove points #ere analy"ed.
(es)ondents of t e %uestionnaire: They gave us satisfactory ans#ers #e as&ed them various questions a!out different matters. They also ensured us to co%operate #ith very &inds of help.
1.# Signific$nce Of The Study

In the modern age, the role of !an& is very #ide as #ell as comprehensive. AIB$. 'a(shahi !ranch .ontri!utes to the fields li&e agriculture, small industry, trade and commerce, foreign e5change, foreign trade, poverty alleviation etc. In recent years, the !an& has !rought significant changes in different policies as #ell as introduces some products.
1.% &i'it$tion! of $t$ (ollection
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [.] + "(I!N(!"
Internship [.] Internship Report 2011Report 201,
Avery thing has its limitations. )y report is also not out of #ea&ness. For some certain causes, I could not effort to conduct my report properly. I have considered the follo#ing causes as the limitations of the study. I had faced some pro!lems during collecting data. The e5ecutive and !an& authority #ere very !usy. So they could not give us enough time for discussion. The ma(or limitations of data collection are given !elo#8 To get clear &no#ledge in any field, #e require sufficient time. Ce get only three months for internship training. This time is not sufficient to collect data from AIB$, 'a(shahi !ranch during the period. This internship report is mainly !ased on pu!lished Income and A5penditure Statement, Statement of Affairs, Schedule of investments etc. But for the preparation of the report, #e canFt get sufficient official datas and informations. Since, #e are students #e have no sufficient &no#ledge and e5perience in preparing report. Ce performed our internship program during the months of +cto!er to 0anuary. >uring these months, the officers and employees #ere too much !usy for opening and closing the accounts and preparing the statement. Some officers #ere too much conservative. They did not #ant to discuss any matter. Some times officer and employees of the !an& do not #ant to give necessary information and data !ecause of secrecy.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [/] + "(I!N(!"
Internship [/] Internship Report 2011Report 201,
2Overvie)
!*1 + An Overvie# of t e Al,Arafa "slami &an- .td
A financial institution, company or corporation generally deals in the !usiness of money, #hich runs for the purpose of lending or deposit of money from the pu!lic. A !an&Fs deposits are amalgamated from the scattered savings of scattered people, and then the particular concern can invest money in different pro(ects. 'epaya!le on demand or other#ise and #ith transfera!le !y chec&s draft order and other#ise can !e termed as a !an&. Aconomic concept is a very much sophisticated and dynamic system of relationship !et#een different agents of society #here !an&s play a vital role to mo!ili"e the economy. The !an&ing institutions ma&e the monetary system more dynamic. )odern economic functions are meaningless and seedless #ithout !an&. To ma&e the social system developed and dynamic no one can deny the contri!utions of !an& !y any means. Ban& at as a financial intermediary to mo!ili"e fund from the surplus to default economic units. Go# a dayFs !an&s play a vital role as leading financial intermediary to meet the gro#ing needs of every economy aspect. The purpose of !an&ing is to ensure the transfer of money from surplus to deficit unit, serving people properly to utili"e the deposited money for developing individually and ma&ing a productive and self%centered country. Ban& in all countries #or& as depository of money. The o#ner loo& for safety and amount of interest for there deposit #ith !an&. Antrepreneurs try to o!tain money form the !an& as #or&ing capital and for long term investment. >uring my training of Al%Arafah Islami Ban& $td, 'a(shahi. I have learnt a!out general !an&ing procedure such as cash receipt and payment, !ills and remittance ,demand draft, ?ayment order, System of accounts opening ,mail transfer, Telegraphic transfer, statement of affairs, loan and advance, to&en issue etc. through I have got an overall idea a!out the !an& e.g ho# it is operated. I have to focus on deposits !ehaviors. These entrepreneurs #elcome effective and for#ard loo&ing advice for investment !an&ing sector thus #e are grateful to the deposit holder on the hand and the entrepreneur are e5pected to play the role of friend, philosopher, and guild for the deposit holder.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [0] + "(I!N(!" Internship [0] Internship Report 2011Report 201,
2.2The (orpor$te *rofile

!*!+/eneral Profile
(e0istered 1ame: (e0istered &rand 1ame: Al%Arafha Islami Ban& $imited A$%A'AF*A IS$A)I BAGH
(e0istered .o0o: (e0istered Office: 2Al,Arafa "slami &an- .imited3 4:, >il&usha .IA, ?iplos Insurance Bo!on ,;thFloor>ha&a%/222, Bangladesh. ?ABJ8 =9:2/=<I =9:<22;I ;/14199%; A%mail8 ai!lKal%arafah!an&.com Ce!site8 ###.al%arafah!an&.com Date of "ncor)oration: /< 0une /==9
"nau0uration of 1st &ranc : 1; Septem!er /==9 "nau0uration of 145t &ranc : >ecem!er /1, 12/1 1umber of &ranc es: 1umber of 6m)loyees: Aut ori7ed Ca)ital: Paid u) Ca)ital: .on0 8erm: S ort 8erm: /2=L /;//L B>T 922.22. .roreL B>T /;=.<=. .rore L MAAF *igh Safety MST%1F *igh @rade
1otification of (e)ortin0:
)arch 19, 12/3
1.4 +!(ectives of AIB$8

To ma&e the evidence that profit is earned through islami !an&ing. To reali"e the transparent concept of profit that o!tains Ga(at and 0annat in a&herat !y the service. To conduct the !an&ing system through in the light of Islami shariat. To provide all types of !an&ing service and develop entrepreneurship including interest free modern !an&ing and commercial and investment in !an&ing to the !usinessman. To enhance the motion of socio%economic development of the country !y providing investment assistance to different types of investment schemes such as agriculture, industry, housing Ireal estate, self employment etc. To play an active role in creating human resource development and employment opportunities. To provide investment for purchasing the desired goods of limited and lo# Nearnings serviceman for their livelihood improvement. To give financial assistance to the poor and ultra%poor people under different scheme for their reha!ilitation and employment. To give required cooperation to the persons #ho are #ishing to perform *a(( and +mrah.
2.3The Str$tegic +o$l

Missions of A"&. :
Achieving the satisfaction of almighty Allah !oth & hereafter. ?roliferation of shariah !ased !an&ing practices. Euality financial services adopting the latest technology. Fast and efficient customer service. )aintaining high standard of !usiness ethics. Balanced gro#th. Steady & competitive return on shareholderFs equality. Innovative !an&ing at competitive price. Attract and retain quality human resources. A5tending competitive compensation pac&ages to the employees. Firm commitment to the gro#th of national economy. Involving more in micro and S)A financing.
9ision Of A"&.
28O/68:6( 8O;A(DS 8OMO((O;3 To !e a pioneer of Islami !an&ing in Bangladesh and contri!uting significantly to the gro#th of the national economy.
!*<+8 e Cor)orate .evel =unction O)erational Area

Until no#, AIB$ Ban& has opened /2= !ranches in /< districts.
!*<+Com)etitive Position
Positionin0 Ma)>
.o# St ro n0
Service C ar0e
DBL AIBL SIBL SCB HSBC
:i0 Po or
&r an d "m a0 e
IBBL
IBBL
SIBL EXIM DBL HSBC
AIBL
Se rvi ce % ua lit y 6A cel len t
O)erational Area? Al,Araf a "slami &an- .imited
!*@+1ature of services and sco)e of A"&.:

/- AIB$ intends to demonstrate the operational meanings of participatory economy, !an&ing and financial activities as an integrated part of code of life. It is an alternative concept of Islamic !an&ing #ith a unique human face approach to credit and !an&ing !ased on interest free economic transaction, mutual participation and sharing of profit and loss through various modes of finance and human as reflected in its general name. 1- In the conte5t of la!or%surplus economy of Bangladesh, it represents a comprehensive alternative concept and an operational model meant to com!ined together ,a- real materials !enefits ,!- visi!le social advantages and ,c- clear spiritual vision Nall three in a pac&age to the !enefit not merely for its clients and shareholders !ut also for the advantages of vastly poor people. The !an& is e5pected to offer an alternative income
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [1-] + "(I!N(!"
Internship [1-] Internship Report 2011Report 201,
.o#
Mana0ement 6fficiency
:i0
; ea -
SCB
generating program for the millions of ur!an and rural poor and profita!le option for the rich. 4- At the operational level, this !an& #ill provide a clear lin&age among three sector of the real economy8 ,a- moneti"ed formal sector, ,!- Gon moneti"ed informal sector and ,cIslami voluntary third sector. It #ill offer modern !an&ing service and underta&e pro(ect in the formal, non formal modern !an&ing services as #ell as provide special services for the Bangladesh living a!road. 3- It offers a socio Neconomic action program, #hich #ill not only generate economic and social opportunities for #or& !ut also foster the spirit voluntary sharing and participation. This involved participation is e5pected to create and environment of economic security and via!le social peace through a sense of !elongings. 9- Aach pro(ect is to !e designed in a manner to earn money. Spending and non%spending activities !ecome economic, social and moral necessities all at once. Cor& is vie#ed as an e5tension of prayer through the diverse program of the pro(ect goes much !eyond the mere replacements of interest rate !y profit sharing ratio. It is e5pected to introduce inter% dependency and mutual concern into the life style, affecting the !ehaviors of savers, consumers, producers, la!ors, farmer, poor, and rich mem!ers of the society. From the sense of the !an&s program #ould !e a scheme.
!*B+Online &an-in0 facilities:

?rocess of online !an&ing facilities is going on.
!*C+ Done E#ise division of A"&.:

Oone >ha&a >ivision
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [1,] + "(I!N(!"
Gum!er of !ranches 9:
Internship [1,] Internship Report 2011Report 201,
.hittagong >ivision Syllhet >ivision Hhulna >ivision 'a(shahi >ivision 'angpur >ivision Borishal >ivision
1/ ; ; : 9 3
!*5+S aria board of FA"&.G &anShariah !oard of AIB$ is the most significant !ody to control Islamic rules and regulation to maintain !an&ing activities sacredly and properly.
Scholar Shariah !oard are highly reputed #ith e5tensive e5perience in la#, economics and !an&ing systems and specialist in la# and finance as prescri!ed !y Islamic Shariah ma&ing up the AIB$Ps Fat#a & Shariah
Supervision Board. The Board is appointed !y the !an&Ps Board of >irectors. The Shariah Board supervises the development and creation of innovative Shariah %compliant investment and financing products and services. The Board is empo#ered to issue fat#aFs on any matter to it !y different !usiness units of the !an&. The Shariah auditors ensure that all the transactions are carried out in strict compliance to Islamic principles of !an&ing. This frame#or& along #ith a stringent compliance to rules has made AIB$ the pioneering organi"ation to practice Islamic finance in true letter and spirit. The name of AIB$ has come to signify innovation, financial dynamism, leadership and a!ove all a complete assurance that all the transactions are free from ri!a ,interest-.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [1.] + "(I!N(!" Internship [1.] Internship Report 2011Report 201,
)em!ers of AIB$Ps Fat#a & Shariah as on 4/ >ecem!er 12/1
)ufti A!dur 'ahman
chairman Secretary mem!er mem!er mem!er mem!er )em!er ,By >efault-
1 )d. A!dur 'ahim Hhan 4 )ufti 'uhul Amin 3 )oulana A!dul Basit Bar&atpuri 9 )ufti )uinul Islam : Alha" A O ) Shamsul Alam
; Badiur 'ahman
2.1,$ist of !oard of >irectors of the !an& as on 4/ >ecem!er, 12/4

/. 1. 4. 3. 9. Badiur 'ahman Sar&er )ohammad Shameem Iq!al Alha(( )d. *arun%ar%'ashid Hhan Alha(( Ga"mul Ahsan Hhaled Alha(( A!dul )ale& )ollah .hairman Bice .hairman >irector >irector >irector
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [1/] + "(I!N(!"
Internship [1/] Internship Report 2011Report 201,
:. ;. <. =. /2. //. /1. /4. /3. /9. /:. /;. /<.
Alha(( *afe" )d. Anayetullah Alha(( A!dul )o&tadir Alha(( Ahamedul *aque Alha(( A!dus Samad Alha(( A!u Gaser )ohammad Qeahea Alha(( A!dus Salam Alha(( Gia" Ahmed )d. Ashi& *ossain Angr. Hh. )es!ahuddin Ahmed )ohammed Amadur 'ahman )d. 'afiqul Islam An#ar *ossain >r. )omta" Uddin Ahmed
>irector >irector >irector >irector >irector >irector >irector >irector >irector >irector >irector >irector >irector
!*11.ist of 6m)loyees of A"&.,

R$j!h$hi -r$nch 23./2401 S$heb -$2$r1 R$j!h$hi ,1321433#1311 ,321433#1%1 5o
,1 ,2 ,3 ,4
5$'e
Md.Syful I!l$' Md. 7bdul :h$le;ue Md. Tori;ul I!l$' Md. 7bdul M$tin
*o!ition
678*9M$n$ger S*O92nd Officer S*O *O
(ontr$ct 5u'ber
,1323413.3311,1.11432#%32 ,101.4,03%#, ,1310423..1#1,1.3441%30#. ,1.11434343#1,132044%,,#3
,# ,% ,3 ,. 1, 11 12 13 14 1# 1% 13 1. 2, 24 2# 2%
7.S.M S$ye' 7bdur R$h'$n Md.=$>ir ?o!!$in Md. @$'irul I!l$' Md. 6$hi' Sir$j Md.S$l$h Addin Md. :$'$l ?o!!$in Md. 7r$f$tul I!l$' e)$n Md.S$>il M$'unir R$!hid Md. Re2u$n ?o!!$in Md.Robiul I!l$' Md.Sh$hinur 7l$' Md. Munjurul ?$!!$n Md.6$2lur R$h'$n Md. I!r$il ?o!!$in Md. :hor!ed 7lo'
S<O S<O S<O <O <O <O <O <O Officer S6S S6S M(+ M(+ river (o'. 7+ 5ight +u$rd (le$ner
,131144%33231,1.3144%3323 ,13134021043 ,131%4141#301,1.1%4141#30 ,1.134.3%4,%1,13104,2,#43 ,134041%102. ,131%430.#,,1,1.1343%2.0% ,13134%23,,3 ,13104,0,1%2 ,132%434#%.1 ,134,4##%.321,13204132314 ,132#.,4,,, ,1##%43,0%221,133.40.4%22 ,11.,.4.,.0 ,131.4#433%. ,1.42412#%30 ,1.33441401# ,134#42.3123
!*1!Performance of t e &an- at a /lance:

(In million taka)
Particular 2009 Authorized Capital 5,000.00 Paid up Capital 1,798.95 Reserve unds ! "ther 1,223.18 Reserve #hareholders$ %&uit' 3,564.73 (Capital ! Reserve) (eposits 38,355.50 Investment 36,134.08 )otal Income 5,305.64 )otal %*penditure 3,575.81 Pro+it ,e+ore )a* ! 1,729.83 Provision Pro+it ,e+ore )a* 1,589.24 Pro+it A+ter )a* 858.99 i*ed Assets 466.30 )otal Assets (%*cludin48,515.79 o++./alance sheet items) Import ,usiness 34,074.80 %*port ,usiness 23,546.10 Capital 0easures Core Capital ()ier.l) 3,498.07 #upplementar' Capital 567.89 ()ier.ll) )ier.l Capital Ratio 9.68 )ier.ll Capital Ratio 1.57 )otal Capital 4,065.96 )otal Capital Ratio 11.25 1 o+ 2PIs to )otal 1.68 investment 2um/er o+ #hares 179,895,36 "utstandin0 %arnin- per #hare ()aka) 2.00 ,ook 3alue per #hare 19.82 ()aka) Price %arnin- Ratio 11.23 ()imes) Price %&uit' Ratio ()imes) 2.71
2010 5,000.00 4,677.28 1,779.08 9,790.36 53,882.96 53,582.96 7,685.57 4,462.30 3,223.27 2,852.47 1,959.04 655.39
2011 2012 10,000.00 10,000.00 5,893.37 7,130.98 2,437.43 4,079.63
2013 15,000.00 8,343.25 4,827.20 16,091.17
11,989.11 14,050.69 82,186.98 77,714.95 11,332.59 7,005.81 4,326.78 3,946.62 2,198.75 968.13
118,683.39 140,980.55 106,650.42 125,715.39 16,692.58 19,723.41 11,937.04 14,774.85 4,755.54 3,944.10 1,945.41 2,394.62 4,948.56 4,360.41 2,276.68 2,517.22
74,005.01 106,768.18 149,320.36 173,161.63 55,934.10 32,042.40 9,582.85 929.96 13.21 1.28 10,512.81 14.49 1.14 76,112.10 71,931.70 52,202.10 58,476.60 11,924.50 13,073.14 1,123.40 1,731.59 85,915.00 68,980.30 15,113.62 1,511.75 13.33 1.33 16,625.37 14.66 2.77
12.31 10.38 1.16 1.37 13,047.90 14,804.73 13.47 11.75 0.95 1.63
467,727,93 589,337,19 713,098,01 834,324,67 6 9 0 1 4.14 2.79 2.03 2.46 16.47 13.24 4.06 16.69 13.55 2.26 19.70 11.97 1.23 19.29 7.76 0.99
(ividend per #hare Cash (ividend (1) ,onus #hare 2um/er o+ ,ranches 2um/er o+ %mplo'ees 2um/er o+ #hareholders
30 60 1,296 114352
26 78 1,711 694357
21 88 1,807 864279
17 100 2,110 824939
13.50 110 2,387 58,466
!*1$Or0ani7ational Structure Of A"&.:

)anaging >irector
>eputy managing >irector
A5ecutive vice president
Senior vice president
Bice president
Assistant vice president
First asst. vice president
Senior principle officer
?rinciple officer
Senior A5ecutive officer
A5ecutive +fficer
+fficer
O#ners i) structure:
The authori"ed capital of the Ban& is T&.1922.22 million and the paid up capital is T&. //94./< million as on 4/./1.122;. 'eno#ned Islamic Scholars and pious !usinessmen of the country are the sponsors of the Ban&. /22R of paid up capital is !eing o#ned !y indigenous shareholders.
The equity of the !an& stood at T&. 124;.92 million as on 4/ >ecem!er 122<, the manpo#er #as /1=1 and the num!er of shareholders #as /12/4. It has achieved a continuous profit and declared a good dividend over the years. *igh quality customer service through the integration of modern technology and ne# products is the tool of the !an& to achieve success. The !an& has a diverse array of carefully tailored products and services to satisfy customer needs. The Ban& is committed to contri!ute significantly to the national economy. It has made a positive contri!ution to#ards the socio economic development of the country #ith /2= !ranches of #hich /; is A> throughout the country.
Com)osition Of 8 e &oard:
As li&e other !an&s in the private sector. Board of directors of the !an& is a unique com!ination of !oth private and @ovt. sector e5perience. .urrently it consists of /1 directors.
Ca)ital:
The Al%Arafah Islami Ban& $td. has !een consistently maintaining the capital adequacy ratio, as prescri!ed !y Bangladesh !an&. This has !een made possi!le !y a policy of !uilding up !oth capital and reserves. The !an& started #ith an authori"ed capital of t& 922.22 crore in /==9 and paid up capital at the time stood at t&. /;=.<=. crore
(eserve fund:
'eserves fund increased to ta&e /22./2 in 12/4.
Distribution of branc es:

The !an& covers !y its activities all the important trading and commercial centers of the country. As on >ecem!er 4/, 12/4 it had /2= !ranches #ithin Bangladesh. All the !ranches are equipped #ith computers in addition to modern facilities, logistics and professionally competent manpo#er.
&ranc net#or-:
The !an& is maintaining its presence in almost all the division of the country. As on 4/ >ecem!er 12/4,it has /2= !ranches #ithin Bangladesh. almost all the !ranches are equipped #ith computer in addition to the modern facilities and logistics and professionally competent manpo#er.
1umber of em)loyee:
There is /;// employee in Al%Arafah Islami Ban& $td.
Mana0ement and internal or0ani7ation:

The !oard of directors !eing at the highest level of organi"ation structure plays an important role on the policy formulation and ma(or decisions. The management committee manages the routine affairs of the !an&. The !oard of director has the authority to approve the !alance sheet, etc. The .hairman &eeps !oard of directors informed ,on the progress of the !an& and implements the polices esta!lished.
3 Investment >epartment
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [2-] + "(I!N(!" Internship [2-] Internship Report 2011Report 201,
$*1"ntroduction:
@eneral !an&ing represents the formal !an&ing #here all general !an&ing activities are included. @eneral !an&ing is formed to provide financial service to the general people. @eneral !an&ing sector includes customer service department. .ustomer service department provide various client service to their clients. Accounts opening and closing, travel related services, reply client quarries a!out different department and control documentation of client file, requirement is the ma(or function of this department. .ustomer services department is the most important department of Al% Arafah islami !an& ltd, !ecause at first, customer #ants to &no# their various information a!out !an&ing related services from customer service department. So as a part of service organi"ation this department should satisfy to their clients #ith the !est services. @eneral !an&ing includes deposit services, local currency remittances, Investment dis!ursement etc. it should !e mentioned that cash management is also an important part of general !an&ing.
$*!/eneral or formal ban-in0:

AIB$ is a special type of modern and online !an&ing system of our country, #hich includes formal !an&ing, non Nformal !an&ing and voluntary !an&ing system. In the formal !an&ing system it is #or&ing li&e other commercial !an& !ut the names of the customerFs deposits are different from the normal commercial !an&, such as al #adiah current deposit AI.. )udara!a saving deposit AI.. The !an& shores profit #ith its customerFs account and also its investment. In the formal corporate sector, this !an& #ould among others, offer the most up%to%date !an&ing services through opening of various types of deposit and investment account, financial trade, provide letter types of opening letter of credit collection of !ills, effecting domestic and international transfer, of equipment and customer dura!le, hire and installment scale for goods, investment in lo# cost housing and management of real estates participatory investment in various industrial agricultural, transport education and health pro(ect and so on.
4.49arious sc eme of formal ban-in0 sectors and ban-in0 )roducts:

Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [2,] + "(I!N(!" Internship [2,] Internship Report 2011Report 201,
A* 1ame of 8 e Account /eneral Account Al Cadiah .urrent >eposit )udara!a Saving >eposit )udara!a saving >eposit,Staff)udara!a Short Gotice >eposit ,SG>)udara!a term >eposit,4month)udara!a term >eposit,:month)udara!a term deposit,/1monthMudaraba De)osit Sc eme Installment Term >eposit ,IT>Saving Inv. >eposit ,SI>)illionaire >eposit Scheme ,))>S$a&hapati >eposit Scheme ,$>SHotipoti >eposit Scheme ,)H>SSpecial ?ension >eposit Scheme ?rofit Term >eposit ,?T>>ou!le Benefit >eposit Scheme,>B>STriple Benefit >eposit Scheme ,TB>S)onthly Term >eposit ,)*>?ension >eposit Scheme ,?>S-
Profit rate (H)
2.22R :.22R :.22R 9.92R /2.22R /2.19R /2.92R
/1.22R /1.22R /1.22R /1.22R /1.22R /1.:2R /1.22R /1. :4R /1.;<R /1.22R /1.:2R
Source8AIB$,'a(shahi Branch, Statement of affairs as on 42%/1%/4
"nvestment:
B. Game of The Account
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [2.] + "(I!N(!"
?rofit rate ,RInternship [2.] Internship Report 2011Report 201,
)ura!aha ,general )ura!aha post import Bai mua""al ,common IgeneralBai mua""al,real%estateBai mua""al,staffBai mua""al staff real Nestate *ire purchase ,general *ire purchase ,real Nestate*ire purchase staff real Nestate Euard against )T>' Euard against .A' @rameen Small Investment Scheme Small Anterprise Investment Scheme Baim ,Agriculture-
/9%/<R /9%/<R /9%/<R /9%/<R /9%/<R =.22R /9%/<R /9%/<R =.22R 2.22 R 2.22 R /2.22R /2.22R /4.22R
Demand Draft (DD): >> is the most significant instrument of remitting fund. It is an order to pay money dra#n !y one !ranch paya!le to another !ranch on demand. Mail 8ransfer (M8): This !ranch transfer money another !ranch of this !an& in another place in against of commission money of this security paper has to !e transferred to an account of another !ranch.
8ele) one transfer (88): It is the quic&est method of remitting fund from one place to another. In this procedure no instrument is sent to the paying !ranch. )essages sent over telephone or tele5 and the paying !ranch ma&es payment after getting message. Payment Order (PO): It is the #ritten document. This payment order can !e encased on that !ranch from #here it is issued. Several supplier organi"ations use this payment order and here is no account is needed to open #ith !an&. It is issued locally.
3.4($!h dep$rt'ent"
.ash section is the nerve and too much sensitive center of general !an&ing department. It is an important and sensitive section of a !an& #here services are providing to the clients for promotion of the !usiness of a !an&.
3.#7ccount 6$cilitie!:
Al NArafah Islami !an& provide different types of account under account facilities. These accounts can !e classified into follo#ing categories as sho#n !elo#8 /eneral Account: A- Al #adiah current deposit account B- )udara!a saving deposit account .- )udara!a short notice deposit account
S)ecial (fiAed) de)osit Account: Mudaraba 8erm De)osit (ecei)ts : a- 2/ months !- 24 months c- 2: months d- /1 months e- 13 months f- 4: months
Mudaraba Sc eme De)osit : a- )udara!a monthly profit deposit scheme !- )udara!a saving c- )udara!a special deposit pension scheme ,1 yearsd- )udara!a special deposit pension scheme ,9 yearse- )udara!a special deposit pension scheme ,< yearsf- )udara!a special deposit pension scheme ,/2 yearsg- )udara!a special deposit pension scheme ,/1 yearsh- )udara!a monthly saving scheme i- )udara!a ha(( saving deposit (- )udara!a la&hopati deposit scheme &- )udara!a millionaire deposit scheme l- )udara!a dou!le Scheme.
3 Foreign
3.% Introduction"
A5change
The foreign e5change regulation act /=3; as adopted in Bangladesh defines foreign e5change means foreign currency including any instrument dra#n, accepted, made or issued under clause /4 of article /: of Bangladesh !an& order /=;1 and all deposits, credit and !lanches paya!le in any foreign currency and drafts, travelerFs cheques, letter of credit !ill of e5change e5pressed or dra#n in Bangladesh currency !ut paya!le in any foreign currency.
3.3 efinition letter of credit"

$etter of credit is a commitment of ma&ing payment !y a !an& &no#n as issuing !an& in !ehalf of the importer ma&ing payment to the e5porter as !eneficiary #hile the !eneficiary has to comply #ith certain terms and conditions and after su!mission of stipulated documents. According the uniform customs & practice for documentary credit ,U.?>.- documentary credit and stand!y letter of credit mean 6any arrangement, ho#ever named or descri!ed, #here!y a !an& ,the issuing !an&- acting at the request and on instructions of a customer ,the applicant or on its o#n !ehalf-.
3.0Type! of letter of credit"

>ocumentary credit may !e either% /. 'evoca!le credit 1. irrevoca!le credit
3..Speci$l docu'ent$ry credit"

(evolvin0 credit : The revolving credit is one, #hich provide for restoring the credit to the original amount after it has !een utili"ed. *o# many times it #ill !e ta&ing place must !e specially mentioned in the credit. The revolving credit may !e either cumulative or non%cumulative. 8ransferable credit : A transfera!le credit is one that can !e transferred !y the original !eneficiary in full or in part to one or more su!sequent !eneficiaries. Such credit can !e transferred once only, unless other#ise specified. Fractions of a transfera!le credit can !e transferred separately, provided shipments are not prohi!ited. &ac- to &ac- credit : The !ac& to !ac& !e a ne# credit opened on the !asis of an original credit in favor of another !eneficiary. Under the !ac& concept the seller as the !eneficiary of the first credit offers it as security to the advising !an& for the issuance of the second credit. The !eneficiary of the !ac&N to%!ac& may !e located inside or outside the original !eneficiary country (ed clause credit: A 'ed clause credit is a credit #ith a special condition incorporates into it that authori"es the conforming !an& or any other nominated !an& to ma&e advance to the !eneficiary !efore presenting of the documents. Under the a!ove credit, the opening !an& is lia!le for the pre%shipment advice made !y the negotia!le !an&, in case the !eneficiary fails to replay or deliver documents for negotiation.
Standby credit:
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [-0] + "(I!N(!"
Internship [-0] Internship Report 2011Report 201,
The stand!y credit is a documentary credit or similar arrangement, ho#ever named or descri!ed #hich represents n o!ligation to the !eneficiary on the part of the issuing !an& to8 A- 'eply money !orro#ed !y the applicant, or advanced to or for the account of the applicant. B- )a&e payment on account of any inde!tedness underta&en !y the applicant. .- )a&e payment on account of any default !y the applicant in there performance of an o!ligation.
4.1.9
6oreign <Bch$nge bu!ine!! "
Foreign e5change !usiness ,e5port, import & remittance- of the !an& stood at )illion in 122/1 as S1<<<<<<<2o against S /<919:2 million in 12//.
8A&.6: &(6AI JP O= =O(6"/1 6KC:A1/6 &JS"16SS
QAA' 1222 122/ 1221 1224 1223 1229 122:
Amount ,S in million/:21./ /42:.; /;11.12 1:13./ /32312./2 /<212.2/ 1<<:9
4 Inve!t'ent
L*1: "ntroduction:
ep$rt'ent
Investment is the soul in every financial institution, and it represents total
development of the !an&ing activities. Cithout investment a !usiness concern canPt commence as financial institution. Investment collects from the scattered savings of the different scattered people. After collecting deposits then !an& invest in different schemes as investment. As AIB$ is, a Islamic shariah !ased !an& so it invests in various schemes to earn profit. So Investment can !e stated as, the investment decisions of a firm are generally &no#n as the capital !udgeting or capital e5penditure decisions. A .apital !udgeting decisions may !e defined as the firmFs decision to invest its current funds most efficiently in the long Nterm assets in anticipation of an e5pected flo# of !enefits over a series of years. The main features of Investment decisions are, The e5change of current funds for future !enefits. The funds are invested in long%term assets. The fund !enefits #ill occur to the firm over a series of yea rs*
The main sources of investment fund of AIB$ are various types of deposit. This Ban& collects deposits from people and various organi"ations at a certain rate of profit paya!le of them and lends this money to people at certain rate of profit more than the rate of collecting money. @enerally Ban& invests its fund, #hich collected !y the follo#ing deposit heads8 L*! Different sc emes of "nvestment A"&.: /. 1. 4. 3. 9. :. ;. <. =. Investment in Agriculture Investment in Industry. Investment in Trade and commerce. Investment in Foreign A5change. Investment in *ouse Building. Investment in Transportation. Investment in *ire purchase. Investment in )osque and )adrasha. Investment in import e5port schemes.
/2. Investment in Small Industries investment scheme. //. Investment in .onsumer investment scheme /1. Investment in 'ural, agri, Investment scheme. /4. Investment in Agri%gramen small schemes. L*$ Sources of =und Al,;adia Current Account: Anyone can open this account !y filling up a specific form and deposition profit is given to these types account holder. .ustomers can deposit and #ithdra# any amount at any time specific prior notice. For opening a current account, the applicant should su!mit the follo#ing papers and information. /. Gationality certificate from the concern authority. 1. T#o copies of recent passport si"e photographs. 4. If the applicant is as service holder he should collect employee certificate from his employer and is to !e su!mitted. 3. An introducer #ho has a current deposit account #ith the respective !ranch should identify the applicantPs signature. 9. The applicant should deposit minimum T&. /222 to open an account.
Mudaraba Savin0s Account: The procedures of opening a savings account are almost same as the current deposit account. Some of the rules and regulations to operate a saving deposit account are mentioned !elo#8 /. 1. 4. +nly saving deposit account holder or a current deposit account holder of the respective !ranch can !e introducer of the applicant for opening a )S> Account. The introducer should attach t#o copies of recent passport si"e photograph of the applicant. In this case, the introducer #ill maintain his or her account num!er. The applicant has to deposit T&. /222 to open an account.
Internship [--] Internship Report 2011Report 201,
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [--] + "(I!N(!"
3. 9. :.
If the client is private or pu!lic limited company, the people authori"ed to open and operate the account should put (oin signature #here it is necessary. )a5imum a customer can #ithdra# his money from this account t#o times a #ee& #ith seven days prior notice. ?rofit rate of this account is :R per annum.
Mudaraba 8erm De)osit: +ne can open this account for ma5imum three years !ut minimum three months. ?rofit and principal #ill !e returned at maturity. ?rofit rate are <.9R per annum for this account.
Mudaraba S)ecial De)osit and Pension Sc eme (MSDPS) : This is a special savings scheme of AIB$. +ne can open this account for different terms. ?rofit given to this savings scheme is K /1.9R per annum for five years and K /1.9R per annum for ten years savings.
8able: Mear,;ise De)osit of A"&.? (aNs a i &ranc : Qear Total >eposit ,Ta&a in $ac12// 12/1 12/4 /12/4.=< /1:44.<= /34==.49
Source8 Statement of Affairs of AIB$, 'a(shahi Branch ,12//%12/4De)osits is t e 144H secured savin0s in a ban-* =rom t e above table? t e de)osits trend is increasin0 from year to year and ere it is in 0ood )osition*
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [-,] + "(I!N(!"
Internship [-,] Internship Report 2011Report 201,
8able: Statement of amount of de)osit for t e year of !41! to !41$ (Account,#ise) Account Game )udara!a Savings >eposit K :R )udara!a short Gotice >eposit K 9.92R )udara!a Term >eposit8 Up to 2/ months K =R Up to 24 months K//R Up to2: months K //R Up to /1 months K //R Up to 13 months K//R Up to 4: months and a!ove K //R Installment Term >eposit ,IT>- K/1R )udara!a *a(( >eposit K /1R )udara!a ?ension >eposit K/1.:2R )udara!a )illionaire >eposit K/1R ?.? )udara!a Term >eposit ,)T>'- K/1R )udara!a $a&hopoit >eposit K/1R )udara!a Hotipoti deposit K/1R ?rofit term depositK/4.44R >ou!le Benefit >opositK/1.:4R Triple Benefit >opositK/1.:4R T Source8 Statement of Affairs of AIB$, 'a(shahi Branch ,1229%922=-Figure 3./.<8@raph of >eposits of AIB$,'a(shahi Branch.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [-.] + "(I!N(!" Internship [-.] Internship Report 2011Report 201,
12/1 TH. In lac //<=.32 93.3/ ;/;=.94 493<.:: /:4/.== 4;4.42 /9=9.;3 /.9; 1<.19 /293.9= /.=2 3<.32 1:1.<9 /;:.32 114.;3 /2/.:/ 3:/.92 42:.;2 3.44
12/4 TH.In lac /4/=.4/ :<.<< <2:;.2: 4223.3/ 1<4<.99 32;.3= /;<:.:< % 1=.=/ //9/.2< 1.24 3=.1= 1;3.23 122.;< 144.9; ;3.3/ :<=.11 1=/.1/ 3.<2
"196S8M618 MA1A/6M618 L*L Conce)t of "nvestment Disbursement: Chen Ban& distri!utes its fund in various #ays to various sectors to earn profit to operate Ban&ing function and to give some profit to deposit holders, and then it called dis!ursement. L*< Princi)le of "nvestment:
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [-/] + "(I!N(!"
Internship [-/] Internship Report 2011Report 201,
There are some principle of lending #hich have to !e maintained for successful Ban&ing !usiness. The main principles of lending of the study !ranch are as follo#s. i* Princi)le of Safety: Safety means the assurance of repayment of distri!uted loans. To ensure the safety of loan, Ban& must have to maintain eligi!le securities from !orro#ers. ii* Princi)le of Profitability: ?rofita!ility is the main o!(ective of commercial Ban&s. The Al%Arafah !an& $td. Is no e5ception to this rule. This !ranch earns profit !y lending at a higher rate of profit than the rate of profit to !e paid on its deposit money. iii* Princi)le of .i'uidity: The Ban& must to maintain sufficient liquidity to repay its depositors and a trade%off !et#een the liquidity and profita!ility is must. iv* "nvestment restriction im)osed by Central &an-: At the time of sanctioning loan, the commercial Ban&s must have to follo#s the restrictions that are imposed !y the Bangladesh Ban& from time to time. v* Princi)le of Diversification: ?rinciple of diversification means to distri!ute the investment to a target num!er of !orro#ers, rather to a small num!er of !orro#ers. This #ill increase the services of the Ban& and it #ill reduce the ris& if investment recovery.
L*@ 8y)es of "nvestment: AIB$ is a (oin venture of three sector private commercial Ban& integrating formal, non% formal and voluntary sector Ban&ing is successfully operating its human resource management through its :/!ranches around the country since its inspection in /==9.
IGBAST)AGT
Buying & Selling )odes
?rofit & $oss Sharing )odes
+ther
)ura!aha
Bai-Muajjal
Bai%Salam
Bai%Istisna
Euard against FI> >irect Investment Internship [-0] Internship Report 2011Report 201,
)udara!a
)ushara&a
=i0* 8y)es of "nvestment
L*B Modes of "nvestment Muraba a : Bai%)ara!aha represents the agreement !et#een the !an& and respective parties.It is a mode of investment under #hich the Ban& as per contract and request of the client procures certain goods permissi!le under Islamic Shariah from a third party and sells those to the client at a cost ?$US declared profit paya!le in cash in any future fi5ed data in lump%sum or !y installment. It !rief it is called cost plus ,declared profit- sales.
"m)ortant =eatures : /- Ban& must purchase the good so that o#nership of Ban& on the goods is esta!lished at least for a moment. 1- There must !e three parties in order to perform !uying and selling under )ura!aha ,aBan& ,!- Seller of goods ,c- purchaser of good. @oods ho#ever must not !e purchased from client or from any its sister concern. @oods must also !e *alal as per Shariah. 4- A commodity in the true sense of the must !e involved in !uying and selling.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [-1] + "(I!N(!" Internship [-1] Internship Report 2011Report 201,
3- There must !e an agreement !et#een the Ban& and client cost of the goods sold and the amount of profit added there #ith should !e separately and clearly mentioned in the )ura!aha agreement. 9- After procurement of the goods the client shall ta&e delivery of the same signing on the rivers of the purchase schedule and immediately after the Ban& shall ta&e goods on plays as security of Ban&s investment. :- +n e5piry of the stipulated period, Ban& can terminate the contract and dispose of the pledged goods at its o#n discretion. Precautions : /- The mar&eta!ility of the goods is to !e verified along #ith price there of so that the client does not !ecome reluctant rather feel encourage ad(usting the investment speedily. 1- The quality and quantity to !e ensured. 4- The price of the goods must !e competitive. 3- .ollateral may !e o!tained for uncommon items. 9- The feasi!ility of the proposal shall !e as curtained.
&ai,MuaNNal : It is a mode of investment under #hich the !an& at the instance of the client procures certain gods permissi!le under Shariah and the la# of the country & sells those to the client at a price paya!le at a fi5ed future date in lump sum or in fi5ed installments under this mode goods are delivered in advance and price is paid later agreed !y the parties.
"m)ortant =eatures : /- @oods are to !e purchased from a third party e5cluding sister concern ,s- of the client. 1- +#nership of Ban& on the goods must !e esta!lished at least for a single moment !efore selling the same to the client. 4- $i&e )ura!aha, Ban& is not !ound to declare cost of goods and profit mar& up separately.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [-2] + "(I!N(!" Internship [-2] Internship Report 2011Report 201,
3- It is a credit sale !y #hich o#nership of the goods is transferred !y the Ban& to the client !efore receipt in sale price. That is payment is deferred for a fi5ed period. Ban& may or may not retain possession of the goods considering the security aspects.
&ai,Salam : Bai%Salam may !e defined as advance purchase of a commodityIproduct ma&ing advance payment !y the Ban& on e5ecution of a contract #here in it is clearly mentioned that the commodity #ill !e delivered as per specification, si"e, quality and quantity at a fi5ed future time in a particular place. The !urden of cost of transportation and storage is also specially mentioned in the contract to avoid confusion. @enerally, industrial and agricultural products are purchased in advance under the a!ove terms to finance so that production is not hindered for #ant of fund.
"m)ortant =eatures : /- There must !e a #ritten contract !et#een the Ban& and the client, #hich shall !e the principal instruments to govern the advance !uying and selling. 1- The name and description of the commodity, specification, quantity, quality, si"e, date, time and place of delivery, transportation cost and godo#n rent if any, must !e mentioned clearly in the contract. 4- ?urchase price, shall !e paid in advance as mentioned in the contract immediately after sign the agreement. If mentioned in the contract delivery of the commodityIproduct can !e ta&en in installments also 3- If the client fails to deliver the commodity in the time per specification as #ell as in specified quantity, the client shall !e !ound to repay the price received earlier in advance against the product along #ith compensation for delayed period. +n the other hand if, the Ban& receives less than the quantity contracted for, the client must pay !ac& the value of product supplied less than the quantity contracted for. 9- It is not necessary to mention cost of product and profit separately in the contract. +nly purchase price of the product may !e mentioned.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [,0] + "(I!N(!" Internship [,0] Internship Report 2011Report 201,
:- Bai%Salam is the only e5ceptional mode allo#ed !y Islamic Shariah in #hich case goods !e sold #ithout having good in possession and e5istence. If the goods are ready for sale Bai%Salam is not allo#ed in Shariah. ;- After ta&ing delivery of the goods, Ban& shall !e the o#ner & shall !ear all ris& till delivery of the same to the purchaser.
&ai, "stisna : Bai% Istisna is a mode of investment of AIB$. It is one of the most important modes of investment. According to the !uyers order it any!ody ma&es a contract for producing a fi5ed Istisna quantity of products in a fi5ed period of time and if the procducts price is paid in advance or installment !asis is called Bai%Istisna. Bai%Istisna is applica!le to the production of industrial commodities and construction. In Bai%Istisna #ho produces or !uilds is called SAGI or $a!or, and #ho controls the SAGI or la!or is called 6)ASGU7 Assential properties8 /. There is a must #ritten contract !et#een the !an& and the party. *ere the name and description of the commodity, specification, place of delivery must !e concluded in this contract. 1. There is no time limit for providing products. But in !an& it is not limited. 4. The price of goods should !e paid in fully in cash or installment !asis. 3. At the time of e5ecuting contract, commodities #hole price should !e paid in case or installment !asis. 9. @oods supply may !e in once a time. :. If specific products are produced !efore and ready to sale canFt !e traded in Bai%Istisna mode. ;. After e5ecuting contract till production, any party can re(ect the contract.
Mudaraba : )ura!aha is a mode of partnership financing !ased on Islamic Shariah principal under #hich entire capital is provided !y the Ban& against a farm contract to the client on the stipulation that the client #ill manage the !usiness #ith due diligence properly and effectively. ?rofit shall !e shared !y the partners as per agreed ratio and loss if any shall !e !orn !y the Ban& i.e. supplier of capital. Supplier for the capital is &no#n as Sahi!ul )ulU and the user of the capital is &no#n as U)udari!U
Conditions : /- Ban& !eing the Shae!ul )al #ill provide the capital and the )udari! #ill manage the cushiness. The amount of investment shall !e made &no#n to !oth the parties 1- Gormally Ban& #ill not interfere in the affair of !usiness. But #ill have the right to supervise and oversee the operation. 4- The Ban& and the )udari! #ill share profit equally. *o#ever, Ban& may allo# more share of profit to the )udari! at its discretion since he #ill manage the !usiness. 3- ?rofit #ill !e distri!uted to !oth the parties. For the time !eing parties #ill divide profit t#ice in a year i.e. 42 0une and 4/ >ecem!er. 9- In case of specific purpose )udara!a profit #ill !e distri!uted at the end of each deal. :- Suita!le Boo&s are of AI.s having to !e maintained !y the )udari!. ;- @enuine loss if any shall !e !orne !y the Ban&. Bun& #ill not shoulder any loss incurred for any fault of the )udari!. <- In case of specific purpose )udara!a the specified purpose #ith clear description have to !e incorporated in the )udara!a agreement.
&ai,Mus ara-a : )ushara&a means partnership. T#o or more persons (ointly contri!ute capital and share profit as per agreed ration and loss as per capital ration. Under this mode Ban& participates #ith
its client as a partner of an enterprise. The Islamic Shriah principle of )ushara&a is Sir&at%Al% Inam, #hich means profit, is divisi!le as per agreed ration irrespective of capital contri!ution #hereas loss is !orne strictly on the !asis of capital contri!ution of the partnerFs involved.Conditions: /- Both Ban& and the client (ointly contri!ute capital. 1- The entrepreneur #ill manage the enterprise. 4- The Ban& shall ta&e part in the policy and decision%ma&ing as #ell as oversee the operation of the enterprise. The Ban& shall appoint suita!le person ,s- at the cost of the enterprise to mange and maintain the !oo&s of accounts properly, if felt necessary. 3- As the entrepreneur shall manage the enterprise, the Ban& may pay more of profit to him that the of proportionate capital investment. 9- $oss, if any, shall !e shared on the !asis of equity ratio. :- Critten agreement incorporation there in all the terms and conditions shall !e e5ecuted !y the parties involved. :ire Pur ase,Mus ara-a Mutna-as a (:P,MM) : *ire ?urchase%)ushara&a )utana&asha ,*?%))- is a mode of investment under #hich the Ban& as per contract shall invest for purchasing dura!le asses li&e )achineries Aquipment, Transport, $and & !uilding etc. along #ith the clients #ith the stipulation that the client hall pay off the rent at the agreed rate on the out sanding equity of the Ban& together #ith the installments of principal amount of equity of the Ban& for the purpose of eventual o#nership of the concerned asset.
=eatures : /- The Islami Shraih principle of investment under *?%)) is )ushara&a )uta%naquasha, #hich means the rent, shall !e devisa!le as per equity involved and unpaid rent if any shall not !e treated, as equity and the asset shall !e acquired on participation o#nership. 1- ?ossession of the assts shall !e passed on to the client for use as per practica!ility.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [,-] + "(I!N(!"
Internship [,-] Internship Report 2011Report 201,
4- Ban& shall retain the o#nership till payment of equity portion of the Ban& along #ith rental. 3- The o#nership of the asset shall gradually pass on to the upon payment of Ban&Ps equity involved and on the reverse upon increase of clientPs equity. 9- 'ent shall no !e compounded in any case. i.e. no rent shall !e charged on unpaidIoutstanding rent. Incidence of rent shall !e reduced proportionately #ith the reduction of equity of the Ban& on payment of installment !y the client. :- Since it is &ind of )ushara&a, case can !e paid to the credit of clients account. *o#ever, the purpose for #hich cash is dis!ursed must !e ensured from the point of Ban&ing. ;- In case of need the equity portion may !e increased or decreased !y ma&ing lump sum payment !y either side. Bery often the client may require funds to the equipmentsImachineries for short period as #or&ing capital #hich may !e paid to the de!it of respective *?%AI. if found feasi!le and covered !y the value of assets.
Direct "nvestment : Investment may !e made for purchasing land for development and su!sequent disposal or for construction of flats and disposal of the same for gainful purpose. The Ban& under (oint o#nership #ith the client may also develop housing estate, !uild up multistoried !uilding and disposal of the same su!sequently for gainful purpose.
%uard a0ainst 8erm De)osit (ecei)t (8D() : Euard against term deposit may !e allo#ed !y creating loan account and profit upon loan is not !e recovered. Simultaneously profit on term deposit for the li&e amount is not !eing paid. The Ban& may recover an amount of service charge for the (o!.
%uard,6,:asana:
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [,,] + "(I!N(!"
Internship [,,] Internship Report 2011Report 201,
Euard%A%*asana !y #ay of temporary over daft in current AI., #ithout charging profit may !e allo#ed &eeping securities there against. Apart from a!ove quard may !e allo#ed to employees against ?F & Benevolent Aund.
9oluntary Sector : In is the right item for glo!ali"ation of Islamic voluntary sectors activates. In this process Al%Arafah Islami Ban& $td. In the 1/st century play a very vital role in reactivation and institutionali"ing the role of Islamic socio%economic institutions and various voluntary and o!ligatory tools of redistri!ution of income through innovative financial instruments and management of found. This Ban& has a special program of development of various religious and social service oriented institutions. Cithin this program, )osque, )a&ta!, Caqf, .harita!le organi"ations etc. #ill !e moderni"ed and activated. All properties under this program #ill !e utili"ed in productive activates on participations !asis. Besides, *a(( ,?ilgrimage- and Hur!ani ,Specific of animals according to dictates of Islam- schemes are included in the program of Al%Arafah Islam Ban& $td. Al%Arafah Islami Ban&. is the process of organi"ing voluntary capital ma&er operation for mo!ili"ation of necessary fund and in the process of developing the follo#ing financial instruments #ith different sets or rules in conformity #ith Sharah8 .ash Caqf >eposit .ertificate ,Special and @eneralEuard%A%*asana .ertificate ,Special and @eneralOa&atIUshar ?ayment .ertificate *a(( Savings .ertificate
*Mear,#ise "nvestment: 8able: Mear,#ise "nvestment of A"&.? (aNs a i &ranc (!44! 8o!41$) Qear 1221 Investment ,Ta&e in $ac1=3=
Internship [,.] Internship Report 2011Report 201,
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [,.] + "(I!N(!"
1224 1223 1229 122: 122; 122< 122= 12/2 12// 12/1 12/4
49/< 3;=< 99<; ;<:1 ;:1= ;;2= =1;2 =<=2 /2=99.3/ /91;4.1/ /4:=;.49 Sources: Statement of affairs as on $4,1!, !41$ A"&.
=rom t e above 0ra) ? t e sector #ise investment of A"&.?(aNs a i &ranc is increased from year to year* So t e investment mec anism is )roductive*
8able: Sector #ise statement of investment of A"&.? (aNs a i branc for t e year of !445 to !41! Ta&a in $ac Investment Game )ura!aha ,@eneralI.ommceial)ura!aha ?ost Import ,)?$Bai )ua""all ,@eneralI.ommercial122= 1;<< /313 233 12/2 1;<< /313 233 Ta&a in $ac 12// % % 129/ 12/1 % % 1=34
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [,/] + "(I!N(!"
Internship [,/] Internship Report 2011Report 201,
Bai )ua""all ,'eal AstateGI Bai )ua""all Staff 'eall Astate Bami%.IS ,Staff*ire ?urchase ,@eneral*ire ?urchase ,'eal Astate*ire ?urchase Staff 'eall Astate EUA'> Against )T>' EUA'> Against .A' )ura!aha Import Bills 8otal O
3 /2 / /: /4 /3 9: 3 3<< BC@!
3 /2 / /: /4 /3 9: 3 3<< BC@!
==:3 % % % 1/12 % 3:92 /943 % !4$15
=/4: % /=/9 % ;<44 //41 //22 93/9 /;1= $1!4$
Sources: Statement of affairs* !41! A"&.
=i0ure:Sector #ise investment 0ar) * From the a!ove statement, it can represent that this !ranch has no all &inds of investment scheme yet has some important investment schemes and invest money.From 122= to 12/1 the investment progress is satisfactory and productive.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [,0] + "(I!N(!"
Internship [,0] Internship Report 2011Report 201,
8otal "nvestment of A"&. (aNs a i &ranc for t e year of !414? !411? !41!? !41$ is as follo#s: Particular 8a-a in 8 ousand !414 Bai%)ua""al ,@eneralBai%)ua""al ,'eal AstateBai%)ua""al ,.IS*ire ?urchase ,'A*.?.S.) ,'AEuard Against ,)T>')udra!a Import Bill Euard Against .A' 8otal 1:=2343:/ /;/;99=1/ ;<4494 <314=2 1/9=<=: 4/=<;=: 4=319;;3 92/91 B4BC<44<4 !411 129/4=4/: ==:311 ;:<411 1/12211 /12:22 3:92222 /91<2142 /943:2 BB454@411 !41! 1=3;3; =/4::< /=/9;4= ;<4494 //41:99 //22222 /;1=;1: 93/91 5!B45<C$4 !41$ @!!55B <92:: /=3<;2 412 1423 =1:1 ;=;<< % 55L@54B
Sources: Statement of affairs* !41$ A"&.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [,1] + "(I!N(!"
Internship [,1] Internship Report 2011Report 201,
6igure" Tot$l inve!t'ent gr$ph.
A !an& performance depends on controlled investment dis!ursement recovery system. According to the a!ove investment chart total investment has increased from 122; to 122= .If the recovery position is #ell then the profit #ill !e very high. And another investment scheme should !e created.
"196S8M618 (6CO96(M
L*C "ntroduction It is the responsi!ility of the manager to monitor the over all profile and ris& aspect of the credit portfolio in accordance #ith the criteria set do#n in the Ban& credit policy. Such monitoring shall !e evidenced from the comments of the manager in monthly callIvisit reports of the assigned officers and &ept in the credit. File #ith copy to regional officerIhead office. This revie# shall !e formally performed at intervals prescri!ed !y head office !ut it is the responsi!ility of the manager to ensure at all items that the credit portfolio meets the standard set forth !y the Ban&. L*5 Periodic revie# and follo#,u) s ould aim at ensurin0: a- That terms of approval have !een adhered to !- That conduct ,turnover, regularity of repayments etc.- of the !orro#ing accounts during the period under revie# has !een satisfactory or as e5pected c- That the continuing value of collateral in adequate d- That there are no adverse trends in mar&et, economic and political conditions #hich may endanger the relia!ility of the facility. e- That the !orro#ers !usiness in !eing satisfactory conducted a reflected through a revie# and analysis of their financial and operating statements and detailed information such as quality of the inventory, aging of receiva!les, trend in sales and profita!ility, liquidity and cash flo# situation, maintaining various ratios, particularly those stipulated !y Ban& at the time the facility #as granted etc. f- That the !usiness reciprocity offered and received is commensurate #ith the facilities allo#ed g- That earnings from the account are cost effective ,i.e. and adequate to meet direct cost of funds and leave sufficient margin for adequate ris& re#ard- overheads and profits All e5tension of credit therefore to !e revie#ed and graded at intervals prescri!ed !y head office. The purpose of this procedure is to monitor lending performance and to identify potential delinquent credits.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [.0] + "(I!N(!"
Internship [.0] Internship Report 2011Report 201,
The !asis of revie#Iclassification is ris& of transaction, repayment record, conduct of the account financial capacity and record of the !orro#er, collateral conditions, supporting and documentation and the degree of conformity to Ban& policies. The responsi!ility for revie# and classification of investment facilities starts and !ranch level #ith the Branch )anger and Second +fficer or Investment +fficer and then #ith 'egional )anager and finally #ith head officer investment division. 'egardless of may formali"ed times for revie# or required reporting of facilities e5tended, any circumstance may cause a facility to !e revie#ed and formally classified !y Branch )anage #ith the approval of *ead Investment division.
L*14 =ollo#,u) and Delin'uent Account Follo#%up and frequent !efore and date and constant persuasion on or !efore due date are to !e made !y the !ranches for timely ad(ustment and to avoid over duce. As soon as an account is classified delinquent ,in any group- a detailed report #ill !e sent to 'egional )anager and *ead +fficer Investment >ivision !y the Branch manager. Thereafter a monthly outstanding report on all delinquent facilities is to !e prepared !y the Second +fficer that #ill !e sent to 'egional )anager to *ead +fficer Investment >ivision (ointly signed #ith Branch )anager. This monthly outstanding statement should !e accompanied !y a status report and future action plan to upgrade the facility to satisfactory status from the Branch )anger.
Procedure to be follo#ed for recovery of irre0ularPstuc-,u)Poverdue investment
i) Contactin0 t e investment cline in #ritin0 and meetin0 )ersonality In order to ensure timely recovery of investment, supervision at all stage shall !e ensured. This #ill include supervision from the date of dis!ursement to total repayment. In case repayment as per schedule does not come the )anger shall personally enquire a!out the causes of non%repayment. If he is convinced that the difficulty is temporary in nature and is li&ely to overcome shortly he should discuss the situation #ith the investment clients and o!tain reasona!le definite repayment schedule under intimation to *ead +ffice. Apart from the a!ove as and #hen any investment !ecomes irregularIstuc&%upIli&ely to !e overdue, the Branch )anager apart from contacting the !orro#er in #riting shall also consult discuss #ith the investment clients a!out hisItheir difficulties in regulari"ationI repayment there of. It necessary the )anager #ill give suggestion in consultation #ith *ead +ffice for overcoming the difficult situation. *e #ill personally pursue in such a manner #ith the investment client so that investment can !e reali"ed #ithout hindering good relationship #ith investment clients. If necessary he #ill utili"e the influence of the local elites to insist the party to ma&e repayment.
ii) Sendin0 (esume of "nvestment to :ead Office Branch )anager #ill send the 'esume of Investment Bide F%<; mentioning there in the latest position of investment, security, irregularities occurred and the efforts made in the meantime for regulari"ationIrecovery of the investment as #ell as suggesting future action
iii) "ssuance of (e0istered 1otice If persuasion does not !ring any fruitful result he #ill issue a final registered notice impressing upon the client concerned to repay #ith in /9 >ays time form the date of receipt of the letter #ith ac&no#ledgement due.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [.2] + "(I!N(!" Internship [.2] Internship Report 2011Report 201,
iv) .e0al 1otice to be issued If the investment client docs not for#ard repay #ith in a reasona!le period, legal notice is to !e served through panel la#yer of the Ban& #ith copy endorsed o *ead +ffice. The reaction of legal notice is also to the &no#ledge of *ead +ffice #ith comments of the Branch )anager for further instruction.
v) Suit to be filed If filing sit is allo#ed !y head +ffice the same should !e filed against the de!torIclient concern and the guarantor if any under .ivil ?rocedure .ode = for specific performance to !e deemed as !reach of contract. In case the investment is not covered !y collateral security suit is to !e filed #ith attachment of assets !efore (udgment. +n the other hand if the investment is secured !y )ortgage of ?roperty Title Suit is to !e filed. The copy of plinth as #ell s copy of #ritten statement su!mitted !y dependent is to !e su!mitted to *ead +ffice for record.
vi) Dis)osal of Muraba a StocIn case #here the investment is secured !y pledge of stoc& it should !e mentioned in the 'egistered Gotice that in case the party fails to lift )ura!aha goods on ma&ing repayment, the Ban& shall dispose off the same !y inviting open tender GationalI$ocal daily.
vii) "nvitin0 8ender for Dis)osal of StocInspire of the a!ove if the client does not come for#ard to lift the goods, tender notice shall !e pu!lished in one GationalI$ocal daily on o!taining *ead +ffice approval. The goods shall !e delivered to the highest tendered on o!taining *ead +ffice approval and moneyItitle suit as the case may shall !e filed for short fall ,if any-. For minimi"ing the cost of advertisement, tenderIsale notice of several clients shall !e pu!lished through one tenderIsale notice.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [.-] + "(I!N(!"
Internship [.-] Internship Report 2011Report 201,
viii) Criminal Suit for (ecovery of 9e iclePMac ineries In case of *ire ?urchase Investment, criminal suit under section 32:I312 read #ith section no. =< or /22 .'?. for !reach of contract as #ell as issuance of search #arrant for recovery of immova!leImova!le that is transportImachineries shall !e filed in case the investment client fails to reply the installment as per schedule and also do not surrender the assts. After ta&ing possession of the assets, the same shall !e sold !y inviting tender and )oney Suit under section = of the .ivil ?rocedure .ode for specific performance to !e deemed as !reach of contract if not !an&ed !y )ortgage of property or title SuitI)ortgage Suits for reali"ation of money !y selling the mortgaged property #here in )ortgagor also can purchase the auctioned property under .ivil ?rocedure .ode.
iA) Civil )rison in case asset of Nud0ment debtor for eAecution of decree not found It may !e mentioned that in case no assets is found for e5ecution of decree civil prison of the (udgment de!tor may !e e5ecuted under order 1/ 'ule 4; of .ivil .ode. It may !e mentioned that under the aforesaid +rder and 'ule the 0udge can accord : months (ail to the (udgment de!tor and the plan tiff is to !ear the cost of food of the prisoner at government rate.
Ste)s to be after of Suit After filing of Suit the follo#ing steps shall !e ta&en8 /- Branch shall follo#%up the progress of the suit effectively #ith the legal advisor !y constant touch #ith him for speedy disposal of casesIsuits. 1- Euic& service of Summons on the dependant shall !e ensured. In case normal service of Summons in not possi!le, arrangement shall !e made for su!stitute service i.e. !y #ay of pu!lication of Summons on the daily ne#spaper. 4- Steps shall !e ta&en for attaching the assets of investment clients !efore (udgment so that Ban&Ps profit remains securedIsafeguarded. 3- Steps shall ta&e for issuance of decree !y the court at the curliest. As soon as the decree is given !y the court certified copy shall !e o!tained and true copy shall !e sent to *ead
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [.,] + "(I!N(!" Internship [.,] Internship Report 2011Report 201,
+ffice. A copy of the decree shall also !e sent to the (udgment de!tor impressing to payoff as per terms of decree. 9- It shall !e ensured that payment !y (udgment de!tor is made as per terms of decree. In case of default e5ecution case shall !e filed #ithout delay unless other#ise advised !y *ead +ffice & decrial amount shall have to !e revered on auctioning the property of the property of the (udgment de!tor. :- After filing suit if any compromise prayer I done !y the dependent, the terms and conditions of compromise petitions shall !e sent to *ead +ffice prior to filingIsu!mitting the same in the court. ;- If any prayer for amia!le compromise is made !y the investment client at any stage, the same shall !e sent to *ead +ffice #ith comments and o!servation of the Branch )anager for consideration of head +ffice. <- Chen there is no chance for recovery of any irregularIstuc&%upIover due investment even !y ta&ing legal action the investment shall he treated as UBadU. It may !e mentioned that an investment !ecome !ad for the follo#ing reasons8 a- The financial condition of investment clientsP turn out poor and his !usiness is collapsed and there are no reali"a!le assets. !- Borro#er is not tracea!le and all efforts to find him out fail. c- Investment !ecome time !arred for ta&ing legal action. .onsidering the a!ove points if the )anager is convinced that the investment should !e #ritten off he shall see& permission from *ead +ffice for su!mitting #rite off proposal in this regard.
Doubtful Debt: >ou!tful de!ts mean #here dou!t over the full recovera!ility of the principle andIor profit. Although a loss in anticipated its is not possi!le at this stage to quantify the e5act of that loss. )anagement is required to purse such de!ts #ith the utmost resolution to entire avoid or minimi"e the Ban& losses.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [..] + "(I!N(!"
Internship [..] Internship Report 2011Report 201,
Procedures for ;ritin0 of &ad Debts: All requests for the #riting%off irrecovera!le credit facilities #ill !e initiated !y the Branch )anger after all avenues for recovera!ility of the account have !een e5hausted an that no purpose is served !y retaining the account on our !oo&s. *e #ill for#ard the case to 'egional )anager. The 'egional )anager #ill satisfy himself as to the findings of the Branch manger if necessary, !y conducting a further personal revie# of the account at the !ranch. The 'egional )anger #ill send his recommendation to *ead +ffice Investment >ivision. Chen head #rite%off its !ad de!t then it de!ited its profitIloss AI. and credited to the investment AI.. i.e. ?rofitI$oss AI. Investment AI. >r. .r.
* (ecovery Problems of Al,Arafa "slam &an- .td* There are lot of pro!lems in the nationali"ed commercial !an&ing systems in Bangladesh. ?roper loan recovery is the main pro!lem of the AIB$, 'a(shahi Branch. There are lots of causes, #hich themselves, directly influence the loan recovery of AIB$ is very defective. In most of the cases, pro!lems may arise from the sanctioning procedures of loan, investigation of the pro(ect, investigation of the loaner etc. that is he pro!lem in loan recovery proves are the outcome of the default process in loan dis!ursement. The main reasons of poor loan recovery and some other pro!lems of AIB$ are discussed !elo#.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [./] + "(I!N(!"
Internship [./] Internship Report 2011Report 201,
A* Problems Created by 6conomic 6nvironment The follo#ing pro!lems arise from the affect of economic environment8 ,i,ii.hanging in the management pattern may delay the recovery of the matured loan of the Ban&. The nationali"ed Ban&s sometimes sanctioned loan to the losing concern for further improvement of the respective sector, !ut in most of the cases, they fail to achieve progress. As a result the amount of non%repayment of loan increases gradually. ,iiiIn our country many industries !ecome sic& and also close their !usiness on account of emerging of open mar&et economy. The cost of production is high and quality of goods is not of required standard. As a result they !ecome the losing concerns and the amount of no recovered loans increase. ,ivThere are many companies, #hich e5pand their !usiness rapidly, !ut the e5pansion is for short time. In the long run the amount of classified loan increases. &* Problems Created by /overnment: ,iBan& has also faced may pro!lems in the loan recovery process as a part of continuous pressure from various profited groups. According to the high official on AIB$, the Ban& can not #or& autonomously though it is an autonomous !ody. ,iiThe nationali"ed !an&s are !ound to sanction loan to government organi"ation, though these are losing concern. For this reason, Ban&s faced pro!lems in loan recovery. ,iiiA5isting rules and regulation are insufficient to cover the legal aspect of loan recovery. As a result, defaulters can get release easily from all charges against them. Frequent changes in government policies in regard to recovery of loan. C* )roblems created by t e &an-: ,i- Before lending !an& does not proper analy"e the !usiness ris& of the !orro#ers and !an& can not forecast #hether the !usiness #ill succeed of fail. If the !usiness fails to #ell the loan !ecomes classified.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [.0] + "(I!N(!" Internship [.0] Internship Report 2011Report 201,
,ii- The responsi!ilities of the Ban& are not ended after dis!ursement of loan. It should also ta&e care to !orro#ers #hether the used the loan is right #ay or not. Ban& can help the !orro#ers giving valua!le advice, ho# to use the loan properly. But most of the cases, Ban& does not perform the a!ove responsi!ility. ,iii- In most cases, Ban& fails to determine the value of security against the loan. As a result, If the loan !ecomes classified !an& con not recover its loan through the sale of mortgage. 3. Com)arative statements of "nvestment and (ecovery: The comparative statements of investment and recovery of AIB$ 'ahshahi Branch are as follo#s. Ta!le 3.4.;. .omparative statements of Investment and 'ecovery Investment Game Investment T&. In $ac Bai )ua""all @eneral )ura!aha @eneral Bai )ua""all staff ,'A*igher purchase ,@eneral)ura!aha post Import,)?IBaim%.IS ,staffEuard Against .A' *igher purchase ,'A*?S) staff ,'A9224 31=/ 3 /: 12;; 3 3 /1 /3 'ecovery T&. in $ac 14/1 /933 / : /=93 / 4 / /
Source8 statement of affairs AIB$ 'a(shahi Branch.
6igure. (o'p$r$tive St$te'ent! of Inve!t'ent $nd Recovery *ere the comparative statement of investment recovery is not satisfactory. 'ecovery of Investment of AIB$ 'ahshahi Branch in the year of 12/2,12//,12/1 ,in $ac12/2 =<=2 12// /2==9 12/1 /91;4 12/4 /4;=;
Source8 statement of affairs 12//I12/1 AIB$ 'a(shahi Branch.
6igure" percent$ge fro' the $bove Recovery of Inve!t'ent of 7I-&1R$j!h$hi -r$nch.
statement there is a reali"ation that in 122< the recovery #as 422.</ lac and in 122= it #as /4<.4/ lac &in 12/2 uptomarch it #as 4=.::.So it is clear that from year to year the investment recovery position is not so good. Ste)s A0ainst Defaulter: Ban& holds a right to the credit against defaulter. Gormally Ban& does not go for legal action. So far as possi!le Ban& try to collects is investment from the creditors. The Ban& ta&es some actions, #hich are mentioned here step !y step8 ,i,ii,iii,ivFirstly send a notice for payment the investment. If the creditor does not response then further Ban& issued another final notice. After failure of creditors Ban& sent a legal notice to the client. $astly Ban& goes pending a case and court ta&es necessary steps.
L*11* =ollo#,u) Q Monitorin0 of "nvestment "ntroduction: Branch )anagers are e5pected to e5ercise commonsense and proper care in handling investment #hether sanctioned !y them or any other appropriate authority. Affective control of the investment depends upon their &no#ledge of the customers and proper handling of securities charged to the Ban&. The Branch )anager is the corner stone of the Ban& and on him the success of a Ban& depends on a large e5tent. *is duty is t#o%fold. In the first place he represents his Ban& and its management to the local pu!lic, and of equal importance he represents his local pu!lic to the management. The #ays in #hich he discharges the t#o functions ma&e him either a successful of an unsuccessful Branch )anager. The !est #ay &in #hich the Branch )anager can discharge his o!ligations is to conduct its loaning policy in a says and conservative #ay and to control advances (udiciously to save the Ban& from falling into losses.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [/0] + "(I!N(!"
Internship [/0] Internship Report 2011Report 201,
Branch )angers must, therefore, see that ,i,ii,iii,ivSecurity ,i- Branch manager should ensure the follo#ing in respect of Securities. ,ii- Security is correctly valued and is easily salea!le. ,iii,iv,v,vi?roper storage and custody are made. Stipulated margin is maintained. Adequate insurance, #here necessary, has !een ta&en. There is quic& turnover of stoc&s. The customer is legally competent to !orro#. All the necessary documents have !een duly filled in, stamped and correctly e5ecuted !y the !orro#er. A proper authority covering operation and conferring po#er to !orro# a held in respect of accounts operated upon !y persons other than the !orro#ers themselves. It should !e seen that the advance does not contravene any la# directed !y Bangladesh Ban& of the lending policy of the Ban&.
"ns)ection and 9erification Inspection of the securities and verification of the documents are to !e done regularly. If any irregularity is found, immediate step is to !e ta&en for regulari"ation or rectification of the same #ith intimation to head office.
Stoc- Statements,:y)ot ecationPPled0e In case of advances against hypothecation of stoc&, statement of stoc& is to !e o!tained once or t#ice a month as per terms of sanction. A person authori"ed to operate the account should sign the certificate at the foot of the statement. These statements are to !e carefully scrutini"ed to see the turn over of stoc&, the price of the goods, quality of goods etc. The price
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [/1] + "(I!N(!" Internship [/1] Internship Report 2011Report 201,
must !e mar&et price of invoice price #hichever is lo#er. A copy of the statement is &ept at !ranch and the other one is sent to *ead +ffice. In case of pledge of goods, stoc& statements are to !e verified #ith go do#n ledger and goods register of the Ban&. There should !e quic& turn over in the account. The !alance should fluctuated very quic&ly daily transaction and the cash credit accounts are to !e carefully #atched. +peration of customerFs account8 All advances account must !e frequently scrutini"ed. Trou!lesome accounts, if any, sometimes require daily attention. The follo#ing are !ed indications and #arrant greater supervision. ,i,ii,iii,iv,v,viThe !alance is stagnant. The !alance is the account remains very near of goes !eyond the dra#ing limit or there is no good turn over. .house dro#n !y the party are return for storage of fund. The party issues post%dated cheques. .heques dro#n !y the party are frequently countermanded. .heques deposited !y the party in the account for collection are often returning.
Chatever the !an&er decision, he #ill !e helped !y the information he has at disposal regarding the customer concern, and for that purpose, adequate and periodical records are of great value. .opies of proposalIreports and general correspondences filed systematically are in valua!le #hen an emergency arises. In additional information received !orro#er from time to time should also !e carefully entered in the !ranch records. +ver and a!ove that the importance of !an&ers touch #ith the !orro#erFs affair can hardly !e over emphasi"ed.
=inancial Position In order to ascertain the financial position of the !orro#er from time to time, the follo#ing are to !e o!tained from the !orro#er and are to !e carefully considered in order to see #hether the !usiness is progressing, #hether there is any healthy feature is visi!le, etc. ,i,iiAudited !alance sheet. Un%audited !alance sheet, if proper !alance sheet is not yet ready.
,iii-
Financial statement in case the party does not prepared the !alance sheet. These are to !e o!tained at the end of each financial year in duplicate. +ne copy is to !e
sent to *ead +ffice retaining other copy #ith !ranch file.
Pur)ose The amount of the advance should !e applied to the purpose for #hich it is !orro#ed. In practice it may !e difficult for the !an&er to supervise effectively that this is done. A5perience in this regard is the !est guide. It should, ho#ever, to !e !orne in mine that purpose is playing and increasingly important role in modern !an&ing.
Confirmation .etters .onfirmation letter should !e signed !y the !orro#er, guarantor or their duly constituted attorneys, half%yearly or annually, as may !e the practice of the !an& not only #ith regard to the !alance in the account !ut also for the securities held. A !alance confirmation letter, !esides confirmation of the !alance and the securities on a particular date, e5tends the period of limitation.
.imitations: The la# of limitation prescri!es the period #ithin #hich e5isting rights can !e enforced in the court of la#. ?eriod of limitation in any account must, therefore, !e #atched from time to time. Avery Ban& should have one limitation register. Chenever, any documents are e5ecuted !y the !orro#er, they are entered into it. Besides security register, it serves the purpose the diary.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [/-] + "(I!N(!"
Internship [/-] Internship Report 2011Report 201,
Usually, documents, vi". ?romissory notes etc. !ecome !urried !y limitation after 4 years from the date of the e5ecution. So they are to !e rene#ed positively #ithin three years to save limitation. $imitation can !e saved !y the acts of the !orro#er in any of the follo#ing three #ays8 ,iIf he o!tains !alance confirmation letter from the !orro#er duly stamped and sign, the limitation period #ill !e e5tended. It #ill !e 4 years from the date of that confirmation letter. ,iiIf the !orro#er deposits some amount in the investment account !y a pay%in slip signed !y him !efore the de!t !ecomes time%!erried, the limitation period #ill !e e5tended for 4 years from date of such deposit. ?art%payment of a de!t if made !efore the e5piry of the prescri!ed period of limitation, can also e5tend the period of limitation, provided such payment has !een authenticated !y the !orro#er or his duly authori"ed agent under his signature. A remittance sent !y the party under his signature for credit of his account #ill also have the same effect. It should, ho#ever, !e emphasi"ed that the ac&no#ledgement or the part payment after the e5piry of limitation #ill not e5tend the period of limitation. ,iiiIf the !orro#er e5ecutes a fresh promissory note or a ne# !ond etc. for the old de!t, the limit is automatically e5tended from the date of the fresh documents may even !e e5ecuted after the period of limitation has e5pire, an old de!t is a good consideration in the eyes of la#, !an&s, ho#ever, do not depend on the s#eet #ill of the !orro#ers in such cases, #ho many or may not e5ecute fresh documents. Go# documents should, therefore, !e ta&en !efore the limitations e5pire. Chile o!tained fresh documents from the !orro#er in rene#al of the original the !an&er should o!tained a 6$in& $etter7 or a 6.onnecting $etter7 from the !orro#er.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [/,] + "(I!N(!"
Internship [/,] Internship Report 2011Report 201,
Diary 1ote All important dates in regard to an account, i.e. due date of insurance policies, date of collection of profit on government securities, date of e5piry of sanction limits, limitations period, date #hen the ne5t !alance sheet of a !orro#ing company are due, must !e diaries.
Ot er Accounts The !orro#er should namely pass all !usiness to the !an& #ith #hich he deals, The !orro#er should not have account #ith any other !an& and he should not !e allo#ed to !orro#er from any other !an&. If the !orro#er is desires, the !an& should meet his full requirement of finance. A !orro#er #ith more than one creditor cannot !e fully relied on unless it is a case of consortium advance.
Miscellaneous It should !e ensured that and advance does not contravene any provision of la#, a directive of the Bangladesh !an& or lending policy laid do#n !y the head office.
(eturnsPStatements A Branch )anager is the &ing in his o#n castle !ut he not the monarch of its affairs. *e is su!(ect to the control of *ead +ffice and there are several #ays in #hich this control is e5ercised. In all Ban&s, !ranches are required to render statements to *ead +ffice on advances at regular intervals. Such returns #ill include. ,i- Cee&ly fresh facility returns, #hich #ill include all investment and advances and other facilities, allo#ed to any !orro#er during the #ee&.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [/.] + "(I!N(!"
Internship [/.] Internship Report 2011Report 201,
,ii- )onthly statement of investment and advance sho#ing actual !alance outstanding at the end of the month and securities #ith charge documents held there against. ,iii- ?eriodical returns #henever the *ead +ffice decides to call for such statements. ,iv- 'eturns required for statistical purpose or for su!mission to Bangladesh Ban& classified purpose%#ise and security%#ise and other detailed returns #hich may !e called for from time to time of certain classes of !orro#ers. ,v- 'eturns of advance #hIch may !e considered 6Bad7 or 6>ou!tful7 !y the Branch )anager and his recommendation as to the #riting off of the irrecovera!le advances or ma&ing provisions there against. By means of these reports, the e5ecutive at *ead +ffice is a!le to assess the course and safety of all advances and thereafter ta&e up action that may !e appropriate to safeguard the profit of the Ban&.
Periodical ins)ection Internal auditorsIinspectors and e5ternal auditors periodically inspect !ranches. >uring each inspection the inspector ma&es a comprehensive and detailed e5amination of the advance including documents, security and turnover and #hether the terms and conditions of the sanction have complied #ith.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [//] + "(I!N(!"
Internship [//] Internship Report 2011Report 201,
<*+"nvestment Credit Mana0ement

<*1* "ntroduction:
After analy"ing the Investment of AIB$, 'a(shahi Branch, I o!served some foremost findings from the year #ise total deposits and total investment. To ta&e proper decisions to run the !an& as developed and advanced service providing and for !eing a modern and clean shariah !ased !an&ing system. So the foremost findings of investment analysis of AIB$,'a(shahi Branch are stated !elo# from the sector #ise deposits to investment. Qear%#ise >eposits8 There are different types of deposits plan included in this !an&. These deposits plan are /22R secured plan to invest in different pro(ects. So the year%#ise deposits and their pro!lems and prospects are stated !elo# in ta!le 3.3 Qear%Cise >eposit of AIB$, 'ahshahi Branch. Ta!le8 Qear #ise deposits structure, Qear 1229 122: 122; 122< 122= 12/2 12// 12/1 12/4 Total >eposit ,Ta&a in $ac1<<3.1< 3/;2.=: 3<==.4: ;=:1.1: /2/=<.;/ //9:;.<; /12/4.=< /1:/:.42 /34==.49
Source8 Statement of Affairs of AIB$, 'a(sahi Branch ,1229%122/4-
Figure 9./8 >eposit trendFs graph.
A5planation8 Already it has cogni"ance that deposits is the /22R secured plan of this !an&.So from 1229 to 122= total deposits has increased at the highest rate.In 1229 the deposit #as 1<<31< thousand, !ut in 122= #as /2/=<;/=3< thousand. So the !an&Fs deposit condition is very #ell,To augment more deposits some steps should !e ta&en, Such as
Amployee of this !ranch should contact to the e5pected customer properly, .onsciousness of savings should !e created to the people, )otivation should !e given to the e5pected customer on savings, Go interest !ut profit oriented earnings source should !e created for the custome
A !an& performance depends on controlled investment dis!ursement recovery system. According to the a!ove investment chart total investment has increased from 122; to 122= .If the recovery position is #ell then the profit #ill !e very high. And another investment scheme should !e created at AIB$,'a(shahi Branch. The investment scope is not so large. Because #ithout !usiness source there is no sufficient source. In this !ranch the a!ove schemes are very much important sources of investment.
8o invest in different sc emes some ste)s to be ta-en? 8 ese are as follo#s? Agriculture sector is not a perfect sector for investment, !ecause there is no proper recovery possi!ility. Aither it is productive or not should !e (ustified. .ustomersF repayment capacity. .ustomersF relations to the !an&. Investment decisions must !e !usiness source oriented.
'eal estate !usiness is perfect for this !ranch. Investment against )T>' is /22R secured. Investment in A5port%Import is favora!le.
<*$ *"196S8M618 (6CO96(M POS"8"O1: 'ecovery of Investment of AIB$ 'ahshahi Branch in the year of 122<,122=,12/2 ,in $ac122< 422.</ 122= /4<.4/ 12/2 4=.:: ,up to )arch12/2
Source: statement of affairs 2009/2010 AIBL Rajshahi Branch. =i0ure <*$: Percenta0e (ecovery of "nvestment of A"&.?(aNs a i &ranc * From the a!ove statement there is a reali"ation that in 122< the recovery #as 422.</ lac and in 122= it #as /4<.4/ lac &in 12/2 up to )arch it #as 4=.::.So it is clear that from year to year the investment recovery position is not so good. To invest in various schemes at first recovery possi!ility should !e (ustified,e.g ho# much #ould !e recovered. From the a!ove ta!le to recover the Investment some principles should !e applied. ,v,vi,viiFirstly send a notice for payment the investment. If the creditor does not response then further Ban& issued another final notice. After failure of creditors Ban& sent a legal notice to the client.
,viii- $astly Ban& goes pending a case and court ta&es necessary steps. Get profit Analysis of AIB$,'a(shahi Branch8 Ta!le8 Get ?rofit of AIB$, 'a(shahi Branch for the year of 12//, 12/1, and 12/4 year 12// 12/1 12/4 Get profit amount in ta&a /,:14,:9<.<< /2:3222.41 194314=.49
Figure 9.38 Get profit increasing trend
<*<* =indin0s
It is notified that. The amount of deposit of the !ranch is increased =.//R in 122< the previous years 122;.Again the amount of the deposit is increased /=.2;R in 122= the previous years 122<.as a result the total amount of deposit of the !ranch is also increased from the previous year. From a!ove ta!le, it has !een found that the amount of Investment of the !ranch is increased <.=2R in 122< the previous years 122;.Again the amount of the deposit is increased 12.1:R in 122= the previous years 122<.as a result the total amount of Investment of the !ranch is also increased from the previous year. Total Get profit of the !ranch is also increasing in 122= from the previous years. The value of the security is not properly valued during the loan dis!ursement. As a result it is very difficult to recover the from other private commercial !an&. Additional training is necessary to increase the efficiency of officers in managing investment.
@*+SCOT 7n$ly!i! 9 Reco''end$tion

@*1+SO;8 A1A.MS"S O= A"&.: S+CT analysis is the critical and resulting study of an organi"ationFs e5posure and potential in perspective of its strength, #ea&ness, opportunity, and threats. This method is used !y the organi"ation to ma&e their e5isting line of performance and also foresee the future to improve their performance in comparison to their competitors. By S+CT analysis, an organi"ation can also reali"e it position. It can also !e considered an important tool for ma&ing changes in the strategic management of the organi"ation. So it is called the mode of analy"ing a significant su!(ect.
RS8(61/8:S:
/ AIB$ !an& has already o!tained a high reputation in !an&ing activities of the country. It is one of the leading private sector commercial !an& in Bangladesh. The !an& has already sho#n a tremendous gro#th in the profits and deposit sector. 1 AIB$ !an& has an interactive corporate culture. The #or&ing environment is very friendly, interactive and communicative and provides as great motivation factor among the potential customer. 4 3 9 : ; < It has e5cellent management Administration. It has high commitment of customer, qualified and e5perienced human resources. It has sophisticated automated system of !an&ing activities. +nline facilities. $ocation is suita!le and comforta!le and in a central point of 'a(shahi city. It is, Totally Islamic Shariah !ased. So it has created strong faithful relation #ith customers.
ROPPO(8J1"8M:
@reat scope to increasing customers financing.
?otential environment of investment in Bangladesh. To increase the mangoes production it can invest in this sector. ?otential sector of S)A. There is a large scope to invest in !usiness sectors.
R ;ea-ness:
Go AT) services. )otivation deficiency to #or&ers. Go authority to ta&e decisions !ranch #ise. .ongested environment. *eavily depends on head office for decision ma&ing. $ac& of incentives and re#ards from the management section. A!sence of team#or& co% ordination among !ranches. Garro# stairs. Go par&ing facilities for vehicles. ?oor >ecoration. Go attractive office space.
R8:(6A8S:
)any commercial foreign !an&s as #ell as private !an&s are esta!lished and they capture the mar&et. *omogeneous retail !an&ing products, such as insurance company, stoc& e5change, financial institutions etc. +!ligatory conditions of Bangladesh Ban& ?rofits rate fluctuation differences. Influence of G@+. .ustomer a#areness of pricing and services. %.2Reco''end$tion!"
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [0-] + "(I!N(!" Internship [0-] Internship Report 2011Report 201,
To achieve the competitive advantages and to survive in the competitive mar&et and to deliver quality services, top management should try to modify and follo# the recommendations.
'ectification of e5isting pro!lems8 A. The synergy of dedicated manpo#er, technology, and mar&et opportunity can lead the organi"ation to achieve the goal. A !an& must esta!lish and adhere to adequate polices, practice and procedures for evaluating the quality of asset and the adequacy of loan provision and service. B. AIB$ !an& should train up its !ranch personal a!out all sort of information regarding S+CT and its services. .. >ue to lac& of !an&ing &no#ledge a!out the operation procedures and services provide to the customer !y s#ift, certain customers are facing pro!lem, as they have to #ait for certain time to get service. And sometimes personnel are not !eings a!le to operate s#ift #ithout any confusion. They are not fully independent of handing s#ift. +fficial training is the solution to this pro!lem. >. AIB$ !an& should al#ays monitor the performance of its competitors in the field of foreign trade. A. For customerFs convenience in foreign e5change department of AIB$ BAGH $T>. Should provide personnel to deliver faster service to their honora!le customer. F. AIB$ Ban& ltd. should focus on their promotional activities. @. They should also focus on the mar&eting aspects to let customers &no# a!out their product and offering and more promotional should !e given to attract ne# customer. *. AIB$ !an& must !e developing electronic !an&ing system. Technologies advantage of a !an& ensuring its competitive edge in the mar&et place can only achieved !y efficient manpo#er.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [0,] + "(I!N(!"
Internship [0,] Internship Report 2011Report 201,
%.3(o''ent!" The !an& can offer to its customer !etter service it all of its department are computeri"ed and incorporated under local area net#or& ,$AG-.
At the entry position !an& should enroll more e5pertise people to augment quality service
Go# a dayFs conventional !an&ing concept is outmoded. Go# !an&s are offering more ancillary service li&e credit card, on line service and many others. AIB$ !an& ltd, should differentiate its service adopting the modern facilities.
Ban& is providing !oth internal and e5ternal training for the offers !ut !an& should !e scrupulous a!out training facilities so that official can implicate this in their (o!.
?eople are very choosy a!out environment no# a days, premises should !e #ell decorated and AIB$. Ban& should provide advance to#ards the true entrepreneur #ith reconsidering conventional system of security and collateral, moreover, the #hole process should !e completed #ithin an accepta!le time.
Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [0.] + "(I!N(!"
Internship [0.] Internship Report 2011Report 201,
%.4(onclu!ion
Ban& plays an important role in Bangladesh economy as financial intermediates. The economic polices and program !y the government play vital role in the e5pansion of financial intermediaries. AIB$ has !een rendering an important service in the development of rural and ur!an economy since its inception. The #iden of !ranch net#or& in various commercial areas may ma&e tremendous contri!ution in overall economic development of Bangladesh. The shahe! !a"ar !ranch of AIB$ also has !een rendering an important role in the development of the area #here it is situated. The effectiveness of its rile #ould depend on ho# efficiently the !an& recourse could !e utili"ed after the evaluation the overall service of the !an& are good. Qet, there e5ists some pro!lem !ut if the employee #or& #ith more sincerely then it #ould !e definitely !etter for the !an&. It is true that the !an& mar&et is very much competitive. For this higher authority should ta&e proper necessary stapes to ensure more effective service to the customer. Bangladesh is developing country. Cithout developing !an&ing sector this country !usiness sector is not possi!le to possi!le rapidly. AIB$ is playing a vital role in the !an&ing sector !an& of Bangladesh. I #ish the AIB$ should ta&e effective strategy for o#n development and to enrich our !an&ing sector more effectively.
%.#-ibliogr$phy"
/. Al Euran. ,Bangla translate Tafhimul Euran-,Sura8 Ba&ara% /<<,1;9, 1;< 'um%4= Al% Imran%/:/ Gesa%1=%42 Hasas%;;, and *adith ,Bu&hari & )uslim Sharif1. Annual reports of AIB$ ranging 122: N 1224. 4. >r. ).G Siddiqi8 Some Aspects of Islamic Aconomy. 3. *orn green, ..T.8 .ost Accounting. 9. Islami Ban& 9 Qears of ?rogress, Islami Ban& Bangladesh $imited, Based on :. Islamic Aconomic 'esearch Bureau8 Thoughts on Islamic Aconomic Ban&ing. ;. Islamic Shariah. <. Hhan.).Q. And 0ain, ?.H8 Financial )anagement, Tata )c @ra#%*ill =. Hothari, ..H. 'esearch )ethodology. /2. )annan ).A.8 Islamic Aconomic8 Theory and ?ractice. //. ?andy, I.)8 Financial )anagement. /1. 'ose and #esterfield8 Financial )anagement /4. Sina, The )odes of Investment of Islami !an&s and .onventional Gationali"ed Ban&.. /3.She&ar, H...8 Ban& )anagement. /9. She&ar, H...8 Ban&ing Theory and ?ractice
The End

Investment Credit Management

Încărcat de

Informații document

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Investment Credit Management

Încărcat de

Drepturi de autor:

Formate disponibile

Al-Arafha Islami Bank Limited

Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [1] + "(I!N(!"

Internship [1] Internship Report 2011Report 201,

Al-Arafha Islami Bank Limited

1.2 Objective Of The Study

1.3 Scope Of The Study

Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [2] + "(I!N(!"

Internship [2] Internship Report 2011Report 201,

Al-Arafha Islami Bank Limited

1.4 Methodology Of The Study

Al-Arafha Islami Bank Limited

@eneral information a!out !an&ing institutions.

Sources of Data Collection

Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [,] + "(I!N(!"

Internship [,] Internship Report 2011Report 201,

Al-Arafha Islami Bank Limited

1.# Signific$nce Of The Study

1.% &i'it$tion! of $t$ (ollection

Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [.] + "(I!N(!"

Internship [.] Internship Report 2011Report 201,

Al-Arafha Islami Bank Limited

Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [/] + "(I!N(!"

Internship [/] Internship Report 2011Report 201,

Al-Arafha Islami Bank Limited

Al-Arafha Islami Bank Limited

2.2The (orpor$te *rofile

Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [1] + "(I!N(!"

Al-Arafha Islami Bank Limited

)arch 19, 12/3

1.4 +!(ectives of AIB$8

Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [2] + "(I!N(!"

Internship [2] Internship Report 2011Report 201,

Al-Arafha Islami Bank Limited

2.3The Str$tegic +o$l

Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [10] + "(I!N(!"

Internship [10] Internship Report 2011Report 201,

Al-Arafha Islami Bank Limited

!*<+8 e Cor)orate .evel =unction O)erational Area

Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [11] + "(I!N(!"

Internship [11] Internship Report 2011Report 201,

Al-Arafha Islami Bank Limited

Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [12] + "(I!N(!"

Internship [12] Internship Report 2011Report 201,

Al-Arafha Islami Bank Limited

SIBL EXIM DBL HSBC

Se rvi ce % ua lit y 6A cel len t

O)erational Area? Al,Araf a "slami &an- .imited

!*@+1ature of services and sco)e of A"&.:

Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [1-] + "(I!N(!"

Internship [1-] Internship Report 2011Report 201,

Al-Arafha Islami Bank Limited

!*B+Online &an-in0 facilities:

!*C+ Done E#ise division of A"&.:

Al-Arafha Islami Bank Limited

Al-Arafha Islami Bank Limited

)em!ers of AIB$Ps Fat#a & Shariah as on 4/ >ecem!er 12/1

)ufti A!dur 'ahman

chairman Secretary mem!er mem!er mem!er mem!er )em!er ,By >efault-

2.1,$ist of !oard of >irectors of the !an& as on 4/ >ecem!er, 12/4

Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [1/] + "(I!N(!"

Internship [1/] Internship Report 2011Report 201,

Al-Arafha Islami Bank Limited

!*11.ist of 6m)loyees of A"&.,

Northern UNI !R"I#$ University %& IN&%R'A#I%N #!()N%L%*$ [10] + "(I!N(!"