INTERNSHIP REPORT General Banking of Social Islami Bank Ltd

Prepared for:

Shehely Parvin
Lecturer

Department of Marketing University of Dhaka

Prepared By Md. Shafiqul Islam BBA, Marketing Roll:58 Sec:B University of Dhaka

PREFACE

There are different directions in the theoretical and practical knowledge. Theory differs in a great way through its operation and implementation. There is no doubt that, to justify the theoretical knowledge practical orientation has great importance. An Internship program brings the students closer to the practical world. This realization of the universities has introduced the system & provision of Internship program for the students of BBA for better understanding and realization with the practical job environment. As a BBA student, it was my great pleasure to be in touch with the organization as Islami Bank Bangladesh Ltd., which is undoubtedly the most efficient and best performing banking institution in our country. The internship program has given me immense opportunity to minimize the gap between theoretical and practical knowledge. My practical experience through performing different activities of the bank including General Banking, Investment and Foreign Exchange has enhanced my view, mission, and acceptability as well as has increased my overall experience about to deal in real world phenomenon.

The formal corporate sector, this Bank would, among others, offer the most up-to date banking services through opening of various types of deposit and investment accounts, financing trade, providing letters of guarantee, opening letters of credit, collection of bills effecting domestic and international transfer, leasing of equipment and consumer durables, hire purchase and installment sale for capital goods, investment in low-cost housing and management of real estates, participatory investment in various industrial, agricultural , transport, educational and health projects and so on. In the Non-formal non-corporate sector, it would, among others, involve in cash Waqf Certificate and development and management of WAQF and MOSQUE properties, and Trust funds.

Brief profile of the Bank: The Bank was incorporated in Bangladesh in the year 1995 as a Bank Company under the Companies Act, 1994. As a fourth Islamic Bank in the private sector the Social Investment Bank Ltd. started its formal operation on November 22, 1995. All types of commercial banking services are provided by the Bank within the stipulations laid down by Bank Company Act, 1991 and directives as received from Bangladesh Bank from time to time. Besides as a matter of policy the Bank conducts its business on the principles of Mudaraba , Musharaka, Murabaha, Bai-Muazzal and Hire Purchase transaction approved by Bangladesh Bank. The Bank is one of the interest-free shariah based Banks in the country and its mouds-operandi are substantially different from those of other commercial banks. Social Investment Bank Limited started its journey with a concept of 21st century participatory three sector banking model. In the Formal sector, it functions as an Islamic Commercial Bank on the basis of profit and loss sharing; in the Non-formal banking sector, it involves in opening and introducing various savings and macro-credit investment and custom-tailored group programs, designed for small entrepreneurs, marginal farmers, landless laborers, unemployed educated/semi-skilled people etc.; in the voluntary sector, the bank would, among others, involve in cash Waqf Certificate and development and management of WAQF and MOSQUE properties, and Trust funds & properties

Aim and objectives of SIBL:  The ultimate objective of the Social Islami Bank is the establishment of poverty-free society where each human being will participate for socio-economic development based on sympathy not based on s  Using this huge population s own cultural tradition SIBL tries to accumulate the money of the people and to provide the right training for creating new productive projects for betterment of the society  Strengthening the relationship among the Muslim countries by economic assistance

 Involving women, minorities and other religion followers in the programs of SIBL for establishing brotherhood and humanity  SIBL does not treat people based on economy rather it treats them as human being. That s why it has taken different Shariah supported convenient investment projects for the deprived people of the society.

Unique characteristics of SIBL: SIBL is totally a different bank in the banking history of Bangladesh. In its very beginning SIBL is running its business in three sectors. These are:  Formal  Non-formal  Voluntary

Formal Banking: Through formal sectors it provides conventional banking benefits to the clients. According to the Islami Shariah, it collects capital, invests it. Moreover SIBL involves in foreign currency transactions.

Scope of the Study:

The scope of this report is to analyze the operation of all departments and to evaluate the performance of the different departments of Social Islami Bank Ltd.

Methodology:
The methodology of the report is stated below, which was appropriately exercised in achieving the above stated objective

1.05 Time period of the study:

For the fulfillment of the desired purpose following working days are spend to various department: Social Islami Bank, Dhamrai, Savar, Dhaka

1.06 Sources of Data collection:

The inputs are collected from two sources:

a) Primary Sources: Discussion with Bank Officers. Personal observation. Desk work in different sections/departments. b) Secondary Sources: Annual report of the Bank. Consultation of related book and publications. Different Statements. File Balance sheet and various documents.

Objectives of the Report:

The primary objectives of the report are: y y To submit a report, for the fulfillment of my BBA practical. The main objective of this report is to find out the General Banking of Social Islami Bank Limited.. y To gather comprehensive knowledge on overall banking functions and the expectations of the customers regarding the service level of the bank. y Identify the factors contributing to the attractive and operative performance of the local branch of the bank. y To make a study of the facts in order to arrive at certain conclusion about overall banking operation. y y y y y Identify the main objectives of SIBL Investment Disbursement. To find out the sector in which SIBL provides Investment. To evaluate financial affairs of the Bank To visualize the quantitative and qualitative aspects of SIBL To identify policy recommendations for further improvement

2.02 Historical Background of Al-Arafah Islami Bank Limited:

Al-Arafah Islami Bank Ltd. (AIBL) was incorporated on 18 June,1995 with authorized capital of Tk.1000 million (100 Crore) and paid up capital of Tk.10.12 Crore paid up by the Sponsors/Directors and Tk.10.12 Crore was offered to the public for subscribed portion of public issue of shares. The Bank was formally inaugurated on 27th September, 2005 with Motijheel Branch (Principal Branch).The Management of the Bank is vested in a Board of Directors consisting of 24 members including the Managing Director of the Bank. Among 24 Directors 2 (two) Directors came from the public

shareholders. Managing Director is the chief executive of the Bank. There is a Shariah council of 7 (seven) members in Al-Arafah Islami Bank Ltd. to monitor the investments whether it invests in Shariah allowed sectors or not .Since its establishment, AIBL opened 5 branches in 1995, 5 in 1996,10 in 1997, 10 in 1998, 5 in 1999, 2 in 2000, 3 in 2001, 1 in 2005, & 5 in 2006 i.e. at the end of 2006 the Bank Branch reaches to 46.Total number of employees of the Bank was 771 in 1995 and reached to 912 in 2006 and during the short period of its activities the Bank has made remarkable progress in various activities. Since commencement of its activities on 18 June ,1995 the Bank has mobilized the deposit of Tk.6415.79 million and 16775.33 million at the end of the year 1999 and 2006. Foreign exchange business handled by the Bank during the year 1999 to 2006 were Tk.7859.72 million and 11314.18 million respectively and investment was Tk.3793.71 million and 17423.18 million at the end of the year 1999 and 2006 respectively. The bank earned a profit of Tk.31.70 million in the year 1999 compared to Tk.470.02 million (profit after tax and provision) in the year 2006.

Al-Arafah Islami Bank Ltd. was established not only to earn profit and to develop economy of the country but also it had an ultimate goal to get reward in the Heaven by banning interest in business. Since its commencement the Bank has been trying to achieve this goal. The Islam loving people specially who are not interested with interest, should help this Bank giving deposit and taking investment from this Bank.

2.03 Mission of Al-Arafah Islami Bank Limited:

By establishing an interest free atmosphere in day to day business transactions, the Promoters, Sponsors & Directors expect the Shafayat from our beloved Prophet Hadrat Muhammad (S) and the ultimate emancipation in the Afterwards.

2.04 Vision of Al-Arafah Islami Bank Limited:

To establish an interest free transaction in the economy

2.05 Special feature of the bank:

i) All activities of the bank are conducted according to Islamic Sharia where profit is the legal alternative to interest. ii) The Banks investment policy follows different modes approved by Islamic Shariah based on Quran & Sunnah. iii) The Bank is committed towards establishing welfare oriented banking system, economic upliftment of the low-income group of people, create employment opportunities. iv) According to the needs and demands of the society and the country as a whole the Bank invests money to different Halal business. The bank participates in different activities aiming at creating jobs, implementing development projects taken by the Government and developing infrastructure. v) The Bank is committed to establish an economic system through social justice and equal distribution of wealth. vi) The Bank helps quick advancement of the disadvantaged people by taking lower profit from them vii) The Bank is contributing to economic and philanthropic activities side by side. Al Arafah English Medium Madrasha and AIBL Library are among mention worthy. (Source-Annual Report-2005, P-24) viii) The Bank provides loan for SME development with easy conditions

Corporate Social responsibility of SIBL:

2.06 Objectives of AIBL:

To establish an interest free economy. To establish an modern banking system for all kinds of people To take part in the economic growth of the country.

To eradicate the poverty and to do social services by establishing Schools, Madrashas, University, Hospitals, Public Library etc. Finally to achieve ultimate goal i.e. Nazat in Akhirat.

FORMAL BANKING SECTOR >> Deposit Scheme > Mudaraba Monthly Profit

Social Islami Bank Ltd is an Islamic Bank ruled by Islamic Shariah. The bank is operating in Formal, Non-Formal and Voluntary banking sector for alleviating poverty in the Bangladesh. But to reduce poverty in a country like Bangladesh there is no other alternative but increase internal deposit. Increase in deposit will increase investment and new investment will result in more employment. For this reason SIBL have introduced "Mudaraba Monthly Profit Scheme". Under this scheme the depositor will get monthly profit on the deposited amount. The reasons for introducing this scheme are as follows: a. The scheme provides monthly profit for service holders who may deposit the pension benefit. b. For those Bangladeshis working abroad willing to deposit once and provide a fixed amount monthly to family and relative residing in Bangladesh. c. The trust and foundations willing to provide monthly scholarship to students against one time deposit. d. For the parents who wants to bear educational expenses of their child against deposit. The features of this scheme are as follows: 1. Tk. 1,00,000/-, 1,10,000/-, 1,20,000/- or 1,25,000/- or any amount multiple can be deposited under this scheme. 2. The duration of the amount should be for Five years. 3. Profit shall be distributed under this scheme as follows: a. 1,00,000/- Tk. 900 (net) b. 1,10,000/- Tk. 1000 (net) a. 1,20,000/- Tk. 1,100 (net) b. 1,25,000/- Tk. 1150 (net) 4. The payable profit will become due after 1 month of deposit. But the amount will be deposited to account in the last week of the month. 5. Generally, a depositor cannot withdraw the amount before 5 years. But, in unavoidable circumstances the depositor can withdraw the amount and in that case 6. The depositor will have to submit the duly filled application form of the scheme.

7. The depositor will have to maintain a Mudaraba Savings account in which the profit of the scheme will be deposited. 8. In case of change of address the depositor must inform the bank as soon as possible. 9. If the scheme is closed before 1 year then no profit will be given.

FORMAL BANKING SECTOR >> Deposit Scheme > Mudaraba Education Savings Scheme

Education expenditure specially for Higher studies is increasing day by day. In many cases children loses the chance of education as their guardians become unable to adjust with the expenditure. But if proper financial planning is adopted earlier then it is easier for the parents to bear the expenses. For these reasons SIBL has introduced "Education Savings Scheme", which is based on Shariah Principles. This scheme would enable the our parents to bear child's educational expenses in a planned manner. General Rules & Regulations of Mudaraba Education Savings Scheme: 1. Any amount of Tk. 25,000/- or multiple is accepted in this scheme. 2. After maturity the amount can be en cashed at a time or can be taken for the next 6 (Six) years of maturity as mentioned in the following table: 3. The abovementioned maturity amount may differ due to the annual profit rate achieved by the Bank. The depositor will get more or less depending on the profit rate. 4. For the above mentioned reason the depositor may get more or less amount of monthly allowance also. 5. The depositor will get a receipt on the deposited amount. 6. In order to receive the monthly education allowance the depositor will have to submit all the Receipts duly discharged and proper instruction must be provided in writing to nominate a person for receiving the allowance. 7. The instrument cannot be en cashed before maturity. In case of emergency if the depositor wants to en cash before maturity the following rules will be applicable: a. If the instrument is encashed before 7 years then Mudaraba Savings Deposit will be applied on the deposited amount. b. If the amount is en cashed after 7 years then amount will be given as per rules of 7 years scheme and for the rest years Mudaraba Savings Deposit rate will be applied. 8. a. In case of Death of the depositor the amount payable will be paid to the nominee. If there is no nominee by submitting Succession certificate the amount will be paid to legal successor of the depositor. b. In case of death of the depositor if the nominee wants to take monthly allowance for 6 six years then the instrument must be submitted to bank and should be duly discharged.

9. To issue a duplicate instrument the rules for issuing duplicate Term deposit will be applicable. 10. TAX, VAT, Excise Duty as applicable by Government will have to be borne by the depositor. 11. Bank authority has the authority to change/amend the rules and regulations regarding the scheme as and when required and the depositor must abide by the rules.

FORMAL BANKING SECTOR >> Deposit Scheme > Mudaraba Special Savings (Pension) Scheme

Generally people wants save a portion of their income for economic assurance at old ages. For this reason a unique kind of savings scheme has to be introduced so that a portion of income can be deposited regularly for a long time span. This enables a person to get quite a considerable amount after maturity. Taking the above reasons into account Social Islami Bank Ltd, a joint venture Islamic bank have introduced monthly installment based "Mudaraba Special Savings (Pension) Scheme". Under this scheme any person can deposit a fixed amount monthly and after maturity the depositor will get a handsome amount with increased profit. The depositor may encash the total amount at a time or can take as monthly pension until a stipulated time. Intentions and Goal of the scheme: 1. To create awareness to deposit among average income people. 2. To create a chance for attractive deposit scheme. 3. To create an interest free investment. Eligibility: 1. Any Bangladeshi person aged above 18 yrs and having sound mental condition can may open this scheme. 2. To open this account there must be a signature of a valued introducer. 3. Parents or legal guardians can open this scheme in the name of their underaged children. Rate of installment Tk. 100/-, Tk. 200/-, Tk. 300/-, Tk. 400/-, Tk. 500/-, Tk. 1000/Profit & Waitage: The depositors will get a percentage from the shariah-based investments made by the bank.

Duration of the scheme 5 yrs 10 yrs

Waitage 1.05 1.08

The maturity amount may be more or less than the estimated amount. In case of amount withdrawn before 6 months no profit will be applied. In case of amount withdrawn before 5 yrs but after 6 months profit will be applied as Mudaraba Savings Rate. In case of 10 years scheme if the amount withdrawn after 5 yrs then profit will be applied as per MSDPS rate for 5 years and for the rest period profit will be applied as Mudaraba Savings Rate. After the end of scheme period the depositor may take the matured amount with profit by fixing a monthly take home amount. After maturity estimated profit will be applied as follows: Monthly Installment 100/200/300/400/500/1000/Nominee selection: The depositor may nominate single or multiple person of hie account. In case of multiple people being nominee then percentage of each nominee must be mentioned. In case death of the nominee the depositor may change the nominee by providing notice to the bank. Automatic close of the account: If the depositor fails to deposit 3 (three) installments consecutively before completion of 5 years of the account then the account will be closed and profit will be applied as per Mudaraba Savings Deposit rate. Others: 1. The depositor must deposit the installment by cash or cheque within 15th day of each month. In case of 15th day being govt holiday then the amount can be deposited in the next working day. Estimated amount after maturity 5 years 10 years 8000/22500/16000/45000/24000/67000/32000/90000/40000/112500/80000/2,25,000/-

2. In case of clearing cheque is not collected within 15th day then the depositor will be treated as defaulter for that month. 3. The amount and duration of the scheme will not be changed. 4. The account can be transferred from one branch to another by a written application mentioning the actual reason of transferring. 5. The depositor can close the account any time with a service charge of Tk. 25.00. 6. VAT, TAX as applicable by Govt must be borne by the depositor. 7. The bank reserves the right to add or alter any or all the rules governing MSDPS and such altered or additional rules shall be immediately thereafter be deemed to be binding on all depositors.

FORMAL BANKING SECTOR >> Deposit Scheme > Hajj Scheme

Hajj is one of the most important bases of Islam. Religious muslims tends to perform Hajj when they gather financial ability. But they find it difficult to gather the required amount to perform as there is no such systematic way of saving the money. To help our muslim brothers Social Islami Bank Ltd introduced Hajj/Umrah Scheme. The basic rules of this scheme are: a. This account shall be called as Hajj/Umrah Savings Scheme. b. Any Muslim Residing in Bangladesh may open an account under this scheme. c. This scheme will be accounted under Mudaraba rules. The Bank as Mudarib and the account holder will be treated as Sahib-e-Mal. The account holder will have to enjoy the Profit / Loss of the Banks respective year. d. The depositor will be provided with a Deposit book and the deposited amount must be written and verified by the Bank's authorized official. In case of losing the deposit book Tk. 20 has to be deposited for issuing a new one. e. In case of change of address the bank must have to be notified as soon as possible. f. The savings of this scheme can be used g. Provisional profit will be charged on June and December closing. If the account holder is unable to perform the Hajj/Umrah or any other person does not perform instead of the account holder then the corresponding account will be treated as a Mudaraba Savings account and accordingly profit will be distributed. h. An introducer must be there to open an account. i. Any installment size can be chosen during the opening of the account, which cannot be changed afterwards. j. This scheme can be opened in the name of any under-aged people. In such cases the rules relating to open an account for an under-aged person must be followed. k. In case of closing the account before maturity profit will be given as per rules of Alwadiah Current account. No profit will be given in case of closing the account before 6 (Six) months.

l. m.

n. o. p.

q. r. s.

Monthly installment of the account will be deposited within 10th day of each month. Any advance installment is always appreciable. If a depositor fails to deposit the installment of one month then in the next month two installments must be deposited in due time. In case of failing of two consecutive installments, prior permission of the Branch incumbent must be taken to deposit all the pending installments. In case of failing of 3 consecutive installment the account will be automatically changed to savings account. Money cannot be withdrawn from the Hajj/Umrah account therefore cheque book will not be issued. After the scheduled time of the scheme if the accumulated amount with profit is less then the amount of total estimated cost to perform Hajj/Umrah then the account holder must deposit the rest amount at a time. If for any reason the account holder cannot perform Similarly if the total cost for performing Hajj is less then the accumulated amount the rest will be returned to the account holder. The account holder while disbursement of total amount must provide adequate proof of identity. The Bank retains the authority to change, modify, rectify or cancel the rules regarding the scheme and the account holder must abide by the decision.

FORMAL BANKING SECTOR >> Deposit Scheme > Mudaraba Bashstan Savings Scheme

Housing has become one of the most fundamental needs of human civilization. But in this early 20th century most of the people of Bangladesh are lacking to fulfill this basic need. As a follower of Islamic Shariah, Social Islami Bank Ltd focuses forward to help people to fulfill this basic need. Main features of this scheme: a. The applicant has to fill the application form duly. b. An amount of Tk. 500/-, 1000/-, 1500/-, 2000/- or any amount multiple can be deposited under this scheme. c. The depositor will enjoy earnings from investments under Islami Shariah based Mudaraba rules. d. As per rules of Islami banking the actual amount may vary from the estimated amount. e. In case of failing of 3 (Three) consecutive installments the account will be closed. In such cases profit will be given as per savings account rate, but no profit will be given if the account is closed within 6(Six) months. f. The account holder may choose any installment size on account opening, which cannot be changed later. g. Installment must be deposited within first 15 day of the month. Any amount deposited as advance installment is always welcome.

h. The scheme is 15 years long and if the depositor intends to withdraw the amount then profit will be given as per savings rate. i. TAX, Yearly excise duty etc applicable on the profit will be borne by the depositor. j. In case of change of address the Bank should be notified immediately. k. An account in the name of under-aged person can be opened under this scheme. l. After successful continuation of the scheme for 5 years the depositor may take upto 80% loan of the deposited amount. m. After successful completion house building loan facility from the bank may be considered by the bank authority. n. The Bank retains the authority to change, modify, rectify or cancel the rules regarding Bashthan Savings scheme and the account holder must abide by the decision. o. Income tax imposed on the earnings from the deposited amount should be deducted from depositors account.

VOLUNTARY BANKING SECTOR >> Cash Waqf Scheme

In the voluntary sector SIBL has also introduced Cash Waqf Certificate, a new product for the first time in the history of banking. Together, a new beginning can be made for a participatory economy. Cash Waqf provides a unique opportunity for making investment in different religious, educational and social services. Savings made from earning by the well off and the rich people of the society can be utilized in our organized manner. Income earned from these funds will be spent for different purposes like the purposes of the waqf properties itself. This scheme has been well received by the public in general due to its unique feature. The guidelines for operation of this scheme are stated below:
  

 

 

Cash waqf is an endowment in conformity with shariah, bank manages the waqf on behalf of the waquif. Waqfs are done in perpetuity and the A/c is opened in the title given by the waquif. Waquif have the liberty to choose the purpose(s) to be served either from the list of 32 purposes identified by the bank, covering (a) family empowerment credits (b) Human resource development (c) Health and sanitation and social utility services or any other purpose(s) permitted by shariah. Cash waqf amount earns profit at the highest rate offered by the Bank from time to time. Cash waqf amounts remain intact and only the profit amount is spent for the purpose(s) specified by the waquif. Unspent profit amounts automatically added to waqf amount and earn profit to grow over the time. Waquif can also instruct the Bank to spend the entire profit amount for the purpose specified by him/her. Waqif have the opportunity to create cash waqf at a time. Otherwise he/she may declare the amount he/she intends to build up and may start with a minimum deposit of Tk. 100/-

 

(one hundred) only. The subsequent deposits may also be made in thousand or in multiple of thousand. Waquif have the right to give standing instruction to the bank for regular realization of cash waqf at a rate specified by him/her from any other A/c maintained with SIBL. The amount in Cash Waqf Account is a perpetual deposit.

FORMAL BANKING SECTOR >> Deposit Scheme > Mudaraba Millonaire Scheme

People of Bangladesh are the followers of Islam. They are mostly interested to make interest free deposits. Taking these facts into consideration SIBL a joint venture Islamic bank introduced a monthly installment based "Mudaraba Millionaire Scheme" Rules and regulations of this scheme: 1. Tk. 550/-, Tk. 1050/- or Tk. 2050/- is taken as monthly installment under Mudaraba principles of Islami Shariah. 2. Duration of this scheme will be 15, 20 and 25 yrs. After maturity an estimated amount will become as follows: Duration 15 20 25 Monthly Installment 2,050/1,050/550/Estimated amount after maturity Tk. 10 lac Tk. 10 lac Tk. 10 lac

3. The amount in the above is an estimated amount and may vary at maturity. 4. After starting of operation of this scheme size of installment cannot be changed. 5. Rules of depositing installment: a. Installment must be deposited on or before 15th day of each month. Otherwise the installment will be treated as defaulter. b. In case of 15th day being a govt holiday installment can be deposited in the next working day. c. Installment can be deposited by cheque also but the clearance date of the cheque will be treated as deposit date. d. The depositor can deposit his/her monthly installment from his/her Savings/ Current/MND account through permanent standing instruction. 6. Any depositor may open one or more account in the same name in the same branch. 7. In case of the scheme account is closed before maturity then profit will be applied at the rate of Mudaraba Savings Deposit. But if the account is closed before 6 months no profit will be applied. 8. 80% of the amount deposited can be taken as loan but profit rate decided by the bank must have to be paid by the client.

9. If a depositor fails to deposit 4 consecutive installments then the account will be closed and profit will applied as per rate of Mudaraba Savings Rate. Profit for the first 06 (Six) months shall not be applied. 10. The Bank reserves the right to invest the funds received in mudaraba term deposit accounts, in its sole judgement, in any interest-free "Halal" business it deems fit. 11. In case of change of address or telephone number the depositor must inform the bank immediately. The bank will make correspondence with the depositor by postal service and in case of missing or delay in delivery, the bank will not be liable. 12. a. After the death of the depositor the legal guardian of immature nominee or the nominee himself can continue the scheme. In this a new agreement must be signed with the bank. b. After the death of the depositor the nominee by providing adequate prove to the bank. c. The the account is matured before the nominee becoming matured then the legal guardian may encash the amount by providing adequate prove to the bank. 13. Any Tax, VAT or Excise duty as applicable by Govt will be deducted from the account. 14. 14. The bank reserves the right to add or alter any or all the rules governing this scheme and such altered or additional rules shall be immediately thereafter be deemed to be binding on all depositors.

NON FORMAL BANKING SECTOR >> ILO, UNICEF

1. Micro-Credit Program to the Garments Child Worker (parents)/adult family member jointly with ILO under project finance from govt. of Italy & Norway. In view of the SIBL's satisfactory performance of Stipend Disbursement Program, two agreement on "Family Empowerment Micro-Credit Program" have been signed between SIBL and ILO under project BGD/98/01/PO50/ITA and BGD/99/02/PO70/NORAD on 12.09.2000 and 19.11.2000 respectively for implementing the Program among the parents of the displaced garments child worker for self employment to their parents. It was an action program, against the child labor in garments sector. The recovery under these programs is continuing. 2. Financial Assistance Among The 100 Parents/Guardian Of Former Garments Working Children Under Project UNICEF To Continue Their Education. A memorandum of Understanding (MoU) had been signed between the UNICEF & SIBL on December 15, 2002 for the project entitled "Family Empowerment Program among the 100 parent/guardian of former garments working children". The purpose of the project is to develop a regular source of income for the families of the former garments child workers so that their parents could provide monthly school fees to continue their children' education. By the financial support from unicef, sibl provided assistance of maximum tk. 10,000/- to-individual member. Recovery under the program is continuing. 3. Family Empowerment Micro-Credit Program for self-employment of HTR (Hard to Reach) graduates to implement Micro-Credit program in connection with the Letter of Exchange (LOE) signed with UNICEF. On the basis of the previous MoU with UNICEF signed in the year 2002 , both the organization has signed a Letter of Exchange (LoE) on 29.05.2005 to provide Micro-credit to a good number of parents/guardians of HTR (Hard to Reach) graduates who have received Livelihood Skill Training from Dhaka Ahsania Mission under a project supported by UNICEF.

Formal Banking Sectors y y y y y Investment Banking Foreign Exchange Trade Deposit Scheme Deposit Account Other Operations

Non Formal Banking Sector y y y y y Micro Investment Scheme Micro Enterprise Investment Scheme Joint Scheme Development and Rehabilitation Scheme ILO, UNICEF

Voluntary Banking Sector y y Cash Waqf Scheme Mosque Waqf Property Development Scheme

Ancillary Service y y y y Locker Service Utility Bill receive Guarantee issue Consultancy

Formal Banking Sector> Investment Banking y y y y y Bai-Muazzal HPSM Muarabaha Musharaka Special investment

Bai-Muazzal     Commercial Household Real Estate Trust Receipt

1) Commercial
Bai-Muajjal is a contract between Buyer and Seller under which the seller sells certain specific goods ( permissible under Shariah and Law of the country ), to the Buyer at an agreed fixed price payable at a certain fixed future date in lump sum or within a fixed period by fixed installments. The seller may also sell the goods purchased by him as per order and specification of the Buyer. This mode is applicable for working capital finance. In conventional Banks, the allow loan in the form of cash credit against hypothecation of goods & collateral security.

2) Household Bai-Muajjal is a contract between Buyer and Seller under which the seller sells certain specific goods ( permissible under Shariah and Law of the country ), to the Buyer at an agreed fixed price payable at a certain fixed future date in lump sum or within a fixed period by fixed installments. The seller may also sell the goods purchased by him as per order and specification of the Buyer. This mode is applicable for working capital finance. In conventional Banks, the allow loan in the form of cash credit against hypothecation of goods & collateral security.

3) Real Estate

4) Trust Receipt
Bai-Muajjal is a contract between Buyer and Seller under which the seller sells certain specific goods ( permissible under Shariah and Law of the country ), to the Buyer at an agreed fixed price payable at a certain fixed future date in lump sum or within a fixed period by fixed installments. The seller may also sell the goods purchased by him as per order and specification of the Buyer. This mode is applicable for working capital finance. In conventional Banks, the allow loan in the form of cash credit against hypothecation of goods & collateral security.

HPSM
    Commercial Household Real estate Transport

1) Commercial: Hire Purchase ( Participatory Ownership) is a Special type of contract which has been developed through practice. Actually it is a synthesis of three contracts: i. ii. iii. Shirkat Ijarah and Sale

Shirkatul Melk Shirkat means partnership. Shirkatul Melk means participation in ownership. When two or more persons supply equity, purchase an asset; own the same jointly, and share the benefit as per agreement and bear the loss in proportion to their respective equity, the contract is called Shirkatul Melk contract. Ijarah The term Ijarah has been derived from the Arabic words Ajr and Ujrat which means consideration, return, wages or rent. This is really the exchange value or consideration, return, wages, rent of services of an ASSET. Ijarah has been defined as a contract between two parties, the Hiree and Hirer where the Hirer enjoys or reaps a specific service or benefit against a specified consideration or rent from the asset owned by the Hiree. It is a hire agreement under which a certain asset is hired out by the Hiree to a Hirer against fixed rent or rentals for a specified period. Sale

This is a sale contract between a Buyer and a seller under which the ownership of certain goods or asset is transferred by seller to the buyer against agreed upon price paid / to be paid by the buyer. Thus in Hire Purchase (participatory ownership) mode both the Bank and the client supply equity in equal or unequal proportion for purchase of an asset like land, building, machinery, transport etc. Purchase the asset with that equity money, own the same jointly, share the benefit as per agreement and bear the loss in proportion to their respective equity. The share, part or portion of the asset owned by the Bank is hired out to the client partner for a fixed rent per unit of time for a fixed period. Lastly the Bank sells and transfers the ownership of it's share / part / portion to the client against payment of price fixed for that part either gradually part by part or in lump sum within the hired period after the expiry of the hire agreement.

2) Household Hire Purchase (Participatory Ownership) is a Special type of contract which has been developed through practice. Actually it is a synthesis of three contracts: i. ii. iii. Shirkat Ijarah and Sale

Shirkatul Melk Shirkat means partnership. Shirkatul Melk means participation in ownership. When two or more persons supply equity, purchase an asset; own the same jointly, and share the benefit as per agreement and bear the loss in proportion to their respective equity, the contract is called Shirkatul Melk contract. Ijarah The term Ijarah has been derived from the Arabic words Ajr and Ujrat which means consideration, return, wages or rent. This is really the exchange value or consideration, return, wages, rent of services of an ASSET. Ijarah has been defined as a contract between two parties, the Hiree and Hirer where the Hirer enjoys or reaps a specific service or benefit against a specified consideration or rent from the asset owned by the Hiree. It is a hire agreement under which a certain asset is hired out by the Hiree to a Hirer against fixed rent or rentals for a specified period. Sale This is a sale contract between a Buyer and a seller under which the ownership of certain goods or asset is transferred by seller to the buyer against agreed upon price paid / to be paid by the buyer.

Thus in Hire Purchase (participatory ownership) mode both the Bank and the client supply equity in equal or unequal proportion for purchase of an asset like land, building, machinery, transport etc. Purchase the asset with that equity money, own the same jointly, share the benefit as per agreement and bear the loss in proportion to their respective equity. The share, part or portion of the asset owned by the Bank is hired out to the client partner for a fixed rent per unit of time for a fixed period. Lastly the Bank sells and transfers the ownership of it's share / part / portion to the client against payment of price fixed for that part either gradually part by part or in lump sum within the hired period after the expiry of the hire agreement.

3) Real Estate Same like the above 4) Transport Same as the above

Murabaha  Bill of exchange  Post Import  Commercial

1) Bill of exchange 2) Bai-Murabaha is a contract between a Buyer and Seller under which the Seller sells certain specific goods permissible under Islamic Shariah and Law of the land to the Buyer at a cost plus agreed profit payable in cash on any fixed future date in lump sum or by installments. The profit marked-up may be fixed in lump-sum or in percentage of the cost price of the goods. 3) In case of Bai-Murabaha Banks procure the goods as per indent of the customer, retain it in its custody and sell the same part by part or at a time to the client who gave indent for the goods. This mode is applicable for working capital finance. In conventional Banks, they allow Loan against pledge of goods against fixed rate of interest.

2) Post Import