This report is made by Tazin rahman students of Metropolitan University sylhet.

1. 1
Introduction

2. 2
Chapter-1
Introduction
1.1 Introduction:
Banking system occupies an important place in a nation’s economy because of its
intermediary role; it ensures allocation and reallocation of resources and keeps up the
momentum of economic activities. A banking institution is indispensable in a modern society.
It plays a crucial role in the economic development of a country and forms the core at the
money market of any country. In a developing country like Bangladesh the banking system as
a whole has a vital role to play in the progress of economic development. The overall purpose
of banking is to collect money from surplus unit and transfer it to the deficit unit. The subject
of my report is “General Banking Activities of Al-Arafah Islami Bank Limited: A
Special Concern on Amberkhana Branch”. So my focus is mainly on General banking of
AIBL.
It is a partial requirement to take a taste of real life challenge conducted by the intern. Only a
lot of the ethical knowledge will be little important unless it is applicable in the practical life.
So we need proper important unless it is applicable in the practical life. That’s why we need
proper application of our knowledge to get some benefit from our theoretical knowledge to
make it more fruitful. Any academic course of the study has a great value when it has
practical application in real life. When we engage ourselves in such field to make proper use
of our knowledge in our practical life only, then we come to know about the benefit of the
theoretical knowledge. My Internship time period was During this period I have worked
closely with the employees of Al-Arafah Islami Bank Ltd. Amberkhana Branch Sylhet.
1.2 Origin of the Report:
Practical Orientation and evaluation of banks performance is a part of the BBA program
provided by Metropolitan University. This report is the requirement of that Practical

3. 3
Orientation. Bank is service-oriented organization. So the practical orientation has been made
as an integral part of the BBA degree requirement.
AIBL pursues decentralized management policies and gives adequate work freedom to the
employees. This results in less pressure for the workers and acts as a motivational tool for
them.
1.3 Rationale of the Study:
With the rapid growing competition among nationalized, foreign and private commercial banks
as to how the banks operates its banking operation and how customer service can be made
more attractive, the expectation of the customer has immensely increased. Reciprocating the
sentiment, commercial/ private banks are trying to elevate their traditional banking service to a
better standard, to meet the challenging needs, demands.
Side by side these banks have now concentrated their attention towards diversification of their
products for better performances and existence. For the above circumstances, it has become
necessary for Al-Arafah Islami Bank Limited, one of the leading commercial banks, to focus its
attention towards the improvement of the customer service. That’s why it is quite justified to
make an in depth study about its operation and evaluate the service provided by this bank and
scope for its improvement.
The study may help formulating policy regarding the ideas relating to the feelings of the
customers and bankers. Future more, Al-Arafah Islami Bank Limited executives who are
actually executing policies undertaken by the top management will have a chance to
communicate their feeling and will have the feedback about their dealing from the customer.
1.4 Objectives of the Study:
The main objective of the study is to develop an understanding about the practical banking
activities and to relate them with the theoretical knowledge acquired from the banks. Besides
these the specific objectives are the followings:
1. To Know the general banking activities of AIBL
2. To identify the strength, weakness of general banking of AIBL.

4. 4
3. To make suggestions for policy recommendation.
1.5 Sources of Data:
The information was collected from both primary and secondary sources of data. The report is
descriptive in nature. The study requires various types of information of present policies,
procedures and methods of General Banking Operation. It is an important part of report.
1.5.1Primary Sources of Data:
 Face to face conversation with clients and customers.
 Face to face conversation of the officers.
 Exposure on different desk of the bank.
 Personal observation.
 Expert’s opinion.
1.5.2 Secondary Sources of Data:
 Annual report of Al-Arafah Islami Bank Limited.
 Website of Al-Arafah Islami Bank Limited. and other sample bank.
 File study.
 Statement of affairs.
 Handbook and online articles.
 Relevant books.
1.6 Limitations:
On the way of my study, I have faced the problems that are given below which could be
termed as the limitation / shortcoming of the study-
♣ Short Time Period
♣ Data Insufficiency
♣ Lack of Records
♣ Incomplete and obscure data

5. 5
♣ Unwillingness of key person

6. 6
Overview of Banking Industry

7. 7
Chapter: 2
OVERVIEW OF BANKING INDUSTRY
2.0 Introduction:
Nowadays, Banking sector acts as a backbone of modern business. The term bank derived from
French word ‘Banco’ which means a Bench or Money exchange table. There are different types
of banks like Central bank, Commercial bank, Savings bank, Investment bank, Merchant bank,
Cooperative bank etc. The spread between the two is the profit for the bank. Banks collects
deposits at the lowest possible rates and provides loan and advances at higher rates. Commercial
banks are primary contributors to the national development of the country. The revenue earning
sources of banks are mainly loans and advances. Development of any country mainly depends
upon the banking system.
2.1 Concepts of Bank & Banking:
 Bank
There are large numbers of definition which are offered by the authors for the term ‘bank’.
Oxford Dictionary defines a bank as “an establishment for custody of money, which it pays out
on customers.”
“A bank is a financial intermediary –a dealer in loan and debts “----Cairncoos
“A bank is an institution, the principle function of which is collecting the unutilized money of
the people and to lend to the others.”----R.P. Kent
Thus, a bank can be defined as a financial institution or intermediary which deals with deposits
and advances and other related services. It receives money from the surplus unit of the society
and gives it to the deficit unit as loan and advances.

8. 8
 Banking
Banking is the process of performing the activities of a bank. Sometimes bank and banking is
used wrongly as the same manners. But bank and banking bears the different meaning. The bank
is a financial institution doing the business with money. But banking means all the function and
activities of a bank. That is bank means financial institution and banking means the function of
that institution.
Banking means “The business carried on by a bank or banker”. They include collecting deposit,
landing money and issuing debit or credit card.
According to Oxford Dictionary “Banking is the business of a banker, the keeping or
management of a bank”.
2.2 History of Modern Banking System:
Modern banking practices, including fractional reserve banking and the issue of banknotes,
emerged in the 17th and 18th centuries. The history of banking refers to the development of banks
and banking throughout history, with banking defined by contemporary sources as an
organization which provides facilities for acceptance of deposits and provision of loans. The
history begins with the first prototype banks of world, which made grain loans to farmers and
traders who carried goods between cities. This began around 2000 BC in Assyria and Babylonia.
Later, in ancient Greece and during the Roman Empire, lenders based in temples made loans and
added two important innovations: they accepted deposits and changed money. Archaeology from
this period in ancient China and India also shows evidence of money lending activity.
Many histories position the crucial historical development of a banking system to medieval and
Renaissance Italy and particularly the affluent cities of Florence, Venice and Genoa. The Bardi
and Peruzzi Families dominated banking in 14th century Florence, establishing branches in many
other parts of Europe. The most famous Italian bank was the Medici bank, established by
Giovanni Medici in 1397. The oldest bank still in existence is Banca Monte dei Pachi di Siena,
headquartered in Siena, Italy, which has been operating continiously since 1472.

9. 9
The development of banking spread from northern Italy throughout the Holy Roman Empire and
in the 15th and 16th century to northern Europe. This was followed by a number of important
innovations that took place in Amsterdam during Dutch Republic in the 17th century and in
London in 18th century. During the 20th century, development in telecommunications and
computing caused major changes to banks’ operations and let banks dramatically increase in size
and geographic spread. The financial crisis of 2007-2008 caused many bank failures, including
some of the world’s largest banks and provoked much debate about bank regulation.
2.3 History of Bangladesh Bank:
According to Bangladesh Order, 1972; after the liberation war and the eventual independence of
Bangladesh, the Government of Bangladesh reorganized the Dhaka branch of the State Bank of
Pakistan as the central bank of the country and named it Bangladesh Bank. This reorganization
was done pursuant to Bangladesh Bank Order, 1972 and the Bangladesh Bank came into
existence with retrospective effect from 16 December 1971. Through this order, the entire
operation of the former State Bank of Pakistan in the eastern wing was transferred to Bangladesh
Bank.
2.4 Development of Banking Business in Bangladesh:
Banking system of a country can well say as a barometer of its economic prosperity. Banking
sector plays a pivotal role in the economic development of the country. Bangladesh is a
developing country. Well-developed banking system is indispensible for modern trade and
commerce. Nowadays banks not only act as custodian of public money but also are indispensible
as vital agent for maintenance of sound financial position of a country. After the liberation of
Bangladesh the twelve Banking companies who were doing business in Bangladesh, were
nationalized by the Government of the People’s Republic of Bangladesh under president’s order
No 26 of 1972 entitled The Bangladesh Bank
( Nationalizations) Order, 1972 on March 26, 1972.

10. 10
2.5 Types of Bank in Bangladesh:
The banking system of Bangladesh is composed of 5 types of bank. They are:
 Central Bank.
 State Owned Commercial Bank.
 Private Commercial Bank.
 Foreign Commercial Bank.
 Specialized Development Bank.
2.6 List of Banks in Bangladesh:
Central Bank Bangladesh Bank
Scheduled Banks
State Owned Commercial Banks
1. Sonali Bank Limited
2. Rupali Bank Limited
3. Agrani Bank Limited
4. Janata Bank Limited
5. Bangladesh Development Bank
6. BASIC Bank Limited
Private Commercial Bank
 Conventional Commercial Banks
1. AB Bank Limited
2. Bangladesh Commerce Bank Limited
3. Bank Asia Limited
4. BRAC Bank Limited
5. City Bank Limited
6. Dhaka Bank Limited
7. Dutch-Bangla Bank Limited
8. Eastern Bank Limited
9. IFIC Bank Limited

11. 11
10. Jamuna Bank Limited
11. Meghna Bank Limited
12. Merchante Bank Limited
13. Midland Bank Limited
14. Modhumoti Bank Limited
15. Mutual Trust Bank Limited
16. National Bank Limited
17. National Credit & Commerce Bank Limited
18. NRB Bank Limited
19. NRB Commercial Bank Limited
20. NRB Global Bank Limited
21. One Bank Limited
22. Premier Bank Limited
23. Prime Bank Limited
24. Pubali Bank Limited
25. South Bangla Agriculture & Commerce
BankLimited
26. Southeast Bank Limited
27. Standard Bank Limited
28. The Farmers Bank Limited
29. Trust Bank Limited
30. SonaliBank Limited
31. Uttara Bank Limited
32. Shimanto Bank Limited
 Islamic Shariah Based Commercial Banks
1. Al-Arafah Islami Bank Limited
2. EXIM Bank Limited
3. First Security Islami Bank Limited
4. ICB Islamic Bank Limited
5. Islami Bank Bangladesh Limited

12. 12
6. Shahjalal Islami Bank Limited
7. Social Islami Bank Limited
8. Union Bank Limited
Foreign Commercial Banks
1. Bank Al-Falah Limited
2. Citibank N.A
3. Commercial Bank of Ceylon PLC
4. Habib Bank Limitrd
5. National Bank of Pakistan
6. Standard Chartered Bank
7. State Bank of India
8. Punjab National Bank
9. Woori Bank
10. HSBC
Specialized Banks
1. Bangladesh Krishi Bank
2. Rajshahi Krishi Unnayan Bank (RAKUB)
Non- Scheduled Banks
1. Ansar VDP Unnayan Bank
2. Karmashangosthan Bank
3. Probashi Kollayan Bank
4. Grameen Bank
5. Jubilee Bank
6. Palli Sanchay Bank
2.7 Business of Banking Company
In addition to the business of banking a bank company may engage in any one or more of the
following forms of business:
 The borrowing, raising or taking up of money;
 The lending or advancing of money either upon or without security;
 The drawing, making, accepting, discounting, buying, selling, collecting and dealing in bills
of exchange, hoondees, promissory notes, coupons, drafts,bills of lading, railway receipts,
warrants, debentures, certificates, participation term certificates, term finance certificates,

13. 13
musharika certificates, modareka certificates, such other instruments as may be approved by
the Bangladesh Bank, and such other instruments and securities whether transferable or
negotiable or not;
 The granting and issuing of letters of credit, traveller’s checks, and circular notes;
 The buying, selling and dealing in gold and silver coins and coins of other metals;
 The buying and selling of foreign exchange including foreign bank notes;
 The acquiring, holding, issuing on commission, underwriting and dealing in stocks, funds,
shares, debenture stock, obligations, participation term certificates, term finance certificates,
musharika certificates, modareka certificates and such other instruments and investments of
any kind as may be approved by the Bangladesh Bank;
 The purchasing and selling of bonds, scrips or other forms of securities, participation term
certificates, term finance certificates, musharika certificates, modareka certificates and, on
behalf of the constituents of the Bangladesh Bank or others, such other instruments as may be
approved by the Bangladesh Bank;
 The negotiating of loans and advances;
 The receiving of all kinds of bonds or other valuables on deposit or for safe
custody or otherwise;
 Providing vaults for the safety of the deposits;
 The collecting and transmitting of money against securities;
 Acting as agents for the Government, local authorities or any other person;
 The carrying on of agency business of any description including the clearing and forwarding
of goods and acting as a law agent on behalf of customers, but excluding the business of a
managing agent or treasurer of a company;
 Contracting for public and private loans and negotiating and issuing the same;
 The effecting, insuring and underwriting of shares, stocks, debentures, debenture stock of any
company, corporation or association and the lending of money for the purpose of any such
issue;
 The carrying on and transacting of every kind of guarantee and indemnity business;
 The buying and acquiring of any kind of property including merchandise, patents, designs,
trademarks and copyrights, in addition to, at the normal business period of a bank.

14. 14
 Bringing into possession any property which may satisfy or partly satisfy any of the claims
of the banking company and the managing and borrowing of such property;
 Acquiring, holding and managing of any property or any right, title or interest in any such
property which may form the security or part of the security for any loans or advances or
which may be connected with any such security;
 Undertaking and executing trusts;
 Undertaking the administration of movable and immovable property as executor, trustee or
otherwise;
 For the benefit of employees or ex-employees of the banking company or the dependants
and connections.
 The acquisition, construction, maintenance and alteration of any building or works necessary
or convenient for the purpose of the banking company;
 Selling, improving, managing, exchanging, leasing, mortgaging or otherwise transferring or
turning into account or otherwise disposing of all or any part of the property or rights of the
banking company;
 Acquiring and undertaking the whole or any part of the business of any person or company,
when such business is of a nature enumerated or described in this subsection; doing all such
other things as are incidental or conducive to the promotion or advancement of the business
of the company; any other form of business which the Government may, by notification in
the official Gazette, specify as a form of business in which it is lawful for a banking company
to engage.
2.8 An Overview of Banking Operation in Bangladesh
The development process of a country largely depends upon its economic activities. Banking is a
powerful medium among other spheres of modern socio-economic activities for bringing about
socio-economic changes in a developing country like Bangladesh. Three different sectors like

15. 15
socio-economic changes in a developing country like Bangladesh. Three different sectors like
Agriculture, commerce, and industry provide the bulk of a country’s wealth.
With the passage of time the functions of the bank has got a multi-dimensional configuration. Of
all the functions of a modern bank, lending is by far the most important. They provide both
short-term and long term credit. The customers come from all walks of life, from a small
business a multi-national corporation having its business activities all around the world. The
banks have to satisfy the requirements of different customers belonging to different social
groups.
To regulate the activities of other banks, all the commercial private and/ or nationalized, and
specialized banks perform service related activities within the jurisdiction of the Central Bank. In
our Country, Bangladesh the role of the central
bank is entitled to be executed by Bangladesh Bank. The banking system at independence
consisted of two branch offices of the former State Bank of Pakistan and seventeen large
commercial banks, two of which were controlled by Bangladeshi interests and three by
foreigners other than West Pakistanis. There were fourteen smaller commercial banks. Virtually
all banking services were concentrated in urban areas. The newly independent government
immediately designated the Dhaka branch of the State Bank of Pakistan as the central bank and
renamed it the Bangladesh Bank. The bank was responsible for regulating currency, controlling
credit and monetary policy, and administering exchange control and the official foreign
exchange reserves.
The Bangladesh government initially nationalized the entire domestic banking system and
proceeded to reorganize and rename the various banks. Foreign-owned banks were permitted to
continue doing business in Bangladesh. The insurance business was also nationalized and
became a source of potential investment funds. Cooperative credit systems and postal savings
offices handled service to small individual and rural accounts. The new banking system
succeeded in establishing reasonably efficient procedures for managing credit and foreign
exchange. The primary function of the credit system throughout the 1970s was to finance trade
and the public sector, which together absorbed 75 percent of total advances.

16. 16
The government’s encouragement during the late 1970s and early 1980s of agricultural
development and private industry brought changes in lending strategies. Managed by the
Bangladesh Krishi Bank, a specialized agricultural banking institution, lending to farmers and
fishermen dramatically expanded. The number of rural bank branches doubled between 1977 and
1985, to more than 3,330. Denationalization and private industrial growth led the Bangladesh
Bank and the World Bank to focus their lending on the emerging private manufacturing sector.
Scheduled bank advances to private agriculture, as a percentage of sectoral GDP, rose from 2
percent in FY 1979 to 11 percent in FY 1987, while advances to private manufacturing rose from
13 percent to 53 percent.
The transformation of finance priorities has brought with it problems in administration. No sound
project-appraisal system was in place to identify viable borrowers and projects. Lending
institutions did not have adequate autonomy to choose borrowers and projects and were often
instructed by the political authorities. In addition, the incentive system for the banks stressed
disbursements rather than recoveries, and the accounting and debt collection systems were
inadequate to deal with the problems of loan recovery. It became more common for borrowers to
default on loans than to repay them; the lending system was simply disbursing grant assistance to
private individuals who qualified for loans more for political than for economic reasons. The rate
of recovery on agricultural loans was only 27 percent in FY 1986, and the rate on industrial loans
was even worse. As a result of this poor showing, major donors applied pressure to induce the
government and banks to take firmer action to strengthen internal bank management and credit
discipline. As a consequence, recovery rates began to improve in 1987. The National
Commission on Money, Credit, and Banking recommended broad structural changes in
Bangladesh’s system of financial intermediation early in 1987, many of which were built into a
three-year compensatory financing facility signed by Bangladesh with the IMF in February 1987.
One major exception to the management problems of Bangladeshi banks was the Grameen Bank,
begun as a government project in 1976 and established in 1983 as an independent bank. In the
late 1980s, the bank continued to provide financial resources to the poor on reasonable terms and
to generate productive self-employment without external assistance. Its customers were landless
persons who took small loans for all types of economic activities, including housing. About 70
percent of the borrowers were women, who were otherwise not much represented in institutional

17. 17
finance. Collective rural enterprises also could borrow from the Grameen Bank for investments
in tube wells, rice and oil mills, and power looms and for leasing land for joint cultivation. The
average loan by the Grameen Bank in the mid-1980s was around Tk.2,000 (US$65), and the
maximum was just Tk18,000 (for construction of a tin-roof house). Repayment terms were 4
percent for rural housing and 8.5 percent for normal lending operations.
The Grameen Bank extended collateral-free loans to 200,000 landless people in its first 10 years.
Most of its customers had never dealt with formal lending institutions before. The most
remarkable accomplishment was the phenomenal recovery rate; amid the prevailing pattern of
bad debts throughout the Bangladeshi banking system, only 4 percent of Grameen Bank loans
were overdue. The bank had from the outset applied a specialized system of intensive credit
supervision that set it apart from others. Its success, though still on a rather small scale, provided
hope that it could continue to grow and that it could be replicated or adapted to other
development-related priorities. The Grameen Bank was expanding rapidly, planning to have 500
branches throughout the country by the late 1980s.
Beginning in late 1985, the government pursued a tight monetary policy aimed at limiting the
growth of domestic private credit and government borrowing from the banking system. The
policy was largely successful in reducing the growth of the
money supply and total domestic credit. Net credit to the government actually declined in FY
1986. The problem of credit recovery remained a threat to monetary stability, responsible for
serious resource misallocation and harsh inequities. Although the government had begun
effective measures to improve financial discipline, the draconian contraction of credit availability
contained the risk of inadvertently discouraging new economic activity.
Foreign exchange reserves at the end of FY 1986 were US$476 million, equivalent to slightly
more than 2 months worth of imports. This represented a 20-percent increase of reserves over the
previous year, largely the result of higher remittances by Bangladeshi workers abroad. The
country also reduced imports by about 10 percent to US$2.4 billion. Because of Bangladesh’s
status as a least developed country receiving concessional loans, private creditors accounted for

18. 18
only about 6 percent of outstanding public debt. The external public debt was US$6.4 billion,
and annual debt service payments were US$467 million at the end of FY 1986.

19. 19
An Overview Of Al-Arafah Islami Bank Ltd.

20. 20
Chapter-3
Overview of United Commercial Bank Limited
3.1 Historical Background of Al-Arafah Islami Bank Limited (AIBL):
Islamic ideology encourages us to succeed in life here & hereafter. To achieve this success we
must follow the way dictated by the Holy Quran and the path shown by Rasul (SM). With this
goal in view Al-Arafah Islami Bank Ltd was established (registered) as a public limited company
on 18 June, 1995. The inaugural ceremony took place on 27 September 1995.The authorized
capital of the bank is Tk.2500.00 million and the paid up capital Tk.1500 million. Some very
renowned Islamic personalities and pious businessmen of the country are the sponsors of the
bank. The total paid up capital was invested locality.
The bank is committed to contribute significantly in the national economy. It has made a positive
contribution towards the towards the socio economic development of the country by opening 94
branches on which 31 authorized dealer (AD) throughout the country.
The equity of the bank stood at Tk.3415 million as 31 December 2011, the manpower are 1805
and number of shareholders are12561.
The bank conducts its business on the principles of Mudaraba, Bai-muazzal, and hire purchase
transactions approved by Bangladesh Bank. Naturally, its modes and operations are substantially
different from those of other conventional commercial bank. There is a Shariah council in the
banks who maintains constant vigilance to ensure that the activities of the bank are being
conducted on the precepts of Islam. The Shariah council consists of prominent Ulema, reputed
bankers, renowned lawyers and eminent economist.
3.2 Islamic Banking Movement in Bangladesh
In August 1974, Bangladesh signed the Charter of Islamic Development Bank and committed
itself to reorganize its economic and financial system as per Islamic Shariah.

21. 21
In January 1981, the then President of People’s Republic of Bangladesh while addressing the 3rd
Islamic summit conference held at Makka and Taif suggested, “the Islamic countries should
develop a separate banking system of their own in order to facilitate their trade and commerce”
This statement of the president indicated favorable attitude of the Government of the Peoples
Republic of Bangladesh towards establishing Islamic banks and financial institutions in the
country.
Earlier in November 1980, Bangladesh Bank, the country’s Central Bank, sent a representative to
study the working of several Islamic banks in abroad.
In November 1982, a delegation of IDB visited Bangladesh and showed keen interest to
participate to establishing a joint venture Islamic bank in the private sector. They found a lot of
work had already been and Islamic bank was in already form for immediate introduction. Two
professional bodies-Islamic Economics Research Bureau (IERB) and Bangladesh Islamic
Bankers Association (BIBA) made significant contribution towards introduction of Islamic
banking in the country.
They came forward to provide training on Islamic banking to top bankers and economist to fill-
up the vacuum of leadership for the future Islamic banks in Bangladesh. They also held
seminars, symposia and workshops on Islamic economics and banking throughout the country to
mobilize public opinion in favor of Islamic banking.
Their professional activities were reinforced by a number of Muslim entrepreneurs working
under the aegis of the then Muslim Business Society (now reorganized as Industrialist and
Businessmen Association). The body concentrated mainly in mobilizing equity capital for the
emerging Islamic bank.
At last, the long drawn struggle to establish an Islamic bank in Bangladesh became a reality and
Islami Bank Bangladesh Limited was established in March 1983 in which 19 Bangladeshi
national, 4 Bangladeshi institutions and 11 banks, financial institutions and government bodies of
the Middle East and Europe including IDB and two eminent personalities of the Kingdom of
Saudi Arabia joined hands to make the dream a reality.

22. 22
Later, other five Islamic banks, Islamic Insurance companies and financial institutions were
established in the country. Some traditional banks opened Islamic Banking branches in some
major cities.
3.3 Vision, Mission, Commitments
Vision:
♣ To be a pioneer in Islamic Banking in Bangladesh and contribute significantly to the growth
of the national economy.
Mission:
♣ Achieving the satisfaction of Almighty Allah both here & hereafter.
♣ Proliferation of Shariah Based Banking Practices.
♣ Quality financial services adopting the latest technology.
♣ Fast and efficient customer service.
♣ Maintaining high standard of business ethics.
♣ Balanced growth.
♣ Steady & competitive return on shareholders equity.
♣ Innovative banking at a competitive price.
♣ Attract and retain quality human resources.
♣ Extending competitive compensation packages to the employees.
♣ Firm commitment to the growth of national economy.
♣ Involving more in Micro and SME financing.
Commitments:

23. 23
♣ Ours is a customer focused modern Islamic Banking making sound and steady growth in both
mobilizing deposit and making quality Investment to keep our position as a leading Islami Bank
in Bangladesh.
♣ To deliver financial services with the touch of our heart to retail, small and medium scale
enterprises, as well as corporate clients through our branches across the country.
Page 9 of 49
♣ Our business initiatives are designed to match the changing trade & industrial needs of the
clients.
3.4 Schemes of AIBL
1. Current Account
2. Mudaraba Saving Account
3. Mudaraba Term Deposit Receipt Account.
4. Short Term Deposit
5. Installment Term Deposit.

24. 24
♣ Mudaraba Kotipoti Scheme
♣ Mudaraba Millionaire Scheme
♣ Mudaraba Lckhpoti Scheme
6. Double Deposit Scheme.
7. Hajj Deposit Scheme
8. Small Investment Scheme.
“Allah has permitted trade and forbidden interest”(verse 275 of sura Al-bakara). And as such Al-
Arafah Islami Bank Limited operates with the objectives and commitment to implement the
economic and financial principles of Islam in banking arena blending Islamic values and modern
technologies with a view to achieve complete success in this world and hereafter.
♣ To Provide quality service to our customers.
♣ To set high standard of Integrity.
♣To extend our customers innovation services acquiring state-of-the-art technology blended with
Islamic principles, and bring total satisfaction to our clients and employees.
♣ To expand Islamic banking through welfare oriented banking system.
♣ Ensure equity and justice in economic activities.
♣ Extend financial assistance to poorer section of the people, and
♣ Achieve balanced growth & equitable development.
The primary objective of Al-Arafah Islami Bank Ltd is to promote, foster and develop the
application of Islamic principles, law and tradition to the transaction of financial, banking and
related business affairs and to promote investment companies, enterprise and concerns which
shall themselves be engaged in business as are acceptable and consistent with Islamic principles,

25. 25
law and tradition. But the objectives of Al-Arafah Islami Bank Limited in the context of its role
in the economy are as follows:
1. To offer contemporary financial services in conformity with Islamic Shariah.
2. To contribute towards economic development and prosperity within the principles of Islamic
justice.
3. To facilitate efficient allocation of resources.
4. To help achieving stability in the economy.
3.5 Management:
The company is managed by its Board of Directors consisting of 15 members. The Board
appoints an executive committee consisting of Sponsor Director (Chairman, Vice Chairman), Its
member, Shareholder Director, Ex officer Director, Company Sectary. The committee is
authorized to observe and review major day to day operational functions including investment
plans, budgets and other investment activities.
The Board is also responsible for establishing the company’s policies and reviewing the
operational performance of the company including approval of large investment transactions and
major fund procurement. The Board appoints, the Managing Director responsible for managing
the company’s overall operations within the framework of policies of the company. The Board
also appoints the Policy Committee of eight directors who formulate the personnel policy.

26. 26
3.6 Organization Structure of AIBL :
Managing Director

Deputy Managing Director

Executive Vice President Senior Vice President

Vice President

Assistant Vice President

First Assistant Vice President

Senior Principal Officer

Principal Officer

27. 27

Senior Executive Officer

Professional Executive Officer

Probationary Assistant Officer

Officer

Trainee Officer
3.7 General Banking Division
There are certain three sections working together to fulfill the target of the company.
(a) Customer Service
(b) Cash Department
(c) Accounts Department
(a) Customer Service
Different functions of customer service are:
♣Accounts opening.
♣ Issuance of Cheque Book.
♣ Issuance of Payment Order.

28. 28
♣ Issuance of T.T.
♣ Issuance of D.D.
♣ Issuance of Online Transfer.
♣ Handling transfer transaction.
♣ Operation of clearing house.
♣ Executing customer standing instructions.
(b) Cash Department
Different functions of cash department are:
♣ Receiving cash from the depositors.
♣ Payment of cash to the client as demanded.
♣ Checking all areas of deposit slip whether it is clearly written or not (name, account no,
amount)
♣ Verifying the payment cheque when to pay the money to the clients whether the information is
available or not like dale, amount, account no etc.
♣ All the received and payment money must be written down in the receipt & payment register
along with account no.
♣ Cash register must be maintained by the Cash Officer.
♣ Maintenance of daily cash balance.
♣ Preparation of monthly cash balance.
(c) Accounts Department
Accounting of AIBL can be broadly classified in the following two groups:
i) General Accounting

29. 29
ii) Investment Accounting
(i) General Accounting
General Accounting includes accounting for-general and administrative expense,
funding operation and fixed assets.
Activities of accounting subsection includes:
♣ Registration of voucher.
♣ Posting of voucher in the ledger.
♣ Preparation of unadjusted trial balance
♣ Preparation of adjustments (accrual of expenses and income)
♣ Preparation of adjusted trial balance
♣ Maintenance of accounts with Bangladesh bank & other banks
ii) Investment Accounting
The company maintains its books of account based on the operating method of accounting
according to Generally Accepted Accounting Standards in conformity with one the provision of
relevant regulations of Bangladesh Bank.
♣ Collection of receipts i.e. rental, profit
♣ Control of collection i.e. maintain cheque register.
♣ Reporting of information regarding rental collection i.e. cash collection statement.
♣ Acknowledgement to the Account holder i.e. –statement of accounts.

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♣ Preparation of overdue statement i.e-overdue statement for BOD.
♣ Activities regarding delinquent charge i.e.-billing.
♣ Treatment of irregular investment Account.
3.8 Investment Division
Functions of investment divisions are:
♣ Preparing the proposal
♣ Issuance of sanction letter
♣ Disbursing the payment
♣ Prepare & posting voucher
3.9 Human Resource Division
One of the major responsibilities of the human resource division is to enforce the Personnel
policy of AIBL. The section evaluates the performance of each employee twice a year and
maintains detailed file on each employee.

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General Banking Activities Of Al-Arafah Islami Bank

32. 32
Chapter: 4
General Banking Activities of Al-Arafah Islami Bank
4.1 Products Of AIBL
One of the significance and revolutionary development in the banking area world during last four
decades is the emergence and extra-ordinary development of Islamic Banking in different
countries of the world which has drawn the attention of the scholars and general public of the
Muslim and non-Muslim countries including the world bodies like International Monetary Fund,
World Bank etc.
Products and Services of AIBL
The products and services of AIBL are as follows:
 Deposit Scheme
 Investment Scheme
 SMEs and welfare oriented special schemes
 Foreign Exchange Business
 ATM services
 Locker services
 Online services
 Pay order
 Demand Draft )DD)
 Telegraph Transfer (TT)
4.2 General Banking Functions at Amberkhana Branch:
Financial institution intermediary that mediates or stands between ultimate borrowers and
ultimate lenders is knows as banking financial institution. Banks perform this function in two
ways- taking deposits from various areas in different forms and lending that accumulated amount

33. 33
of money to the potential investors in other different forms. General banking department aids in
taking deposits and simultaneously provides some ancillaries services.
General banking is the front-side banking service department. It provides those customers who
come frequently and those customers who come one time in banking for enjoying ancillary
services. In some general banking activities, there is no relation between banker and customers
who will take only one service form bank. On the other hand, there are some customers with
bank are doing its business frequently. It is an important department for all banks because it
provides day-to-day service to the customers. Front Desk is the important for general banking.
Customers give their deposits and meet their demand for cash by honoring cheques. Besides this
a customer opens new accounts, remit funds, issues bank drafts and pay orders etc. There are
various sections in this department, which are as follows: -
 Cash Section
 Accounts Opening Section
 Cheque Clearing Section
 Remittance Section
4.3 Cash Section
The most vital and important section of the branch is Cash Department. It deals with all kinds of
cash transactions. This department starts the day with cash in vault. Each day some cash that is
opening cash balance are transferred to the cash officers from the cash vault. Opening cash
balance is adjusted by cash receipts and payments. This figure is called closing balance. This
balance is then added to the vault. This is the final cash balance figure for the bank at the end of
any particular day. There is an important clause and duty practiced by the branch is to refund the
principal amount that exceeds more than Tk. 1 crore at the principle branch of the bank.

34. 34
4.4 Books Maintained By This Section
 Vault Register: It keeps account of cash balance in vault in the bank.
 Cash Receipt Register: Cash receipt in whole of the day is recorded here.
 Cash Payment Register: Cash payments are made in a day are entered here.
 Rough Vault Register: Cash calculation for final entry in vault register is done
here as any error and correction here is not acceptable
 Cash Balance Book: Balance here is compared with vault register. If no difference
is found, indicates no error.
4.5 Functions of Cash Department:
Cash Payment:
 Cash payment is made only against cheque
 This is the unique function of the banking system, which is known as
Payment on demand.
 It makes payment only against its printed valid cheque.
Cash Receipt -
 It receives deposits in form of cash
 It collects money only its receipts forms.
4.5Cheque Cancellation or Cash Payment Process:
Step 1
 Receiving Cheque by the employee in the cash counter
 Verification of the followings by the cash Officer in the computer section
Step 2
 Date of the Cheque (present within 6 months from issue date)
Issued from this branch.

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 Amounts in figure and sentence written does not differ
 Signature of the drawer does not differ
 Cheque is not torn or mutilated
Step 3
 Gives pay cash seal and sends to the payment counter
Step 4
 Payment officers make payment
4.6. Account Opening Section
Account opening section is an important factor for banks because customer is the main source of
bank. Selection of customer is another important factor. Bank‘s success and failure largely
depends on their customers. If customer is not good then may create fraud and other problems by
their account with bank and thus destroy goodwill of banks. Therefore, bank must be conscious
in selecting its customer. For this reason Al-Arafah Islami Bank Ltd. keep key information
system.
Accounts Opening Process
Recently, Bangladesh Bank has been declared, designed and enforced a unique format of form
for every banks. This format should hold the important document in a same manner and process
respectively for different kind of accounts. Al-Arafah Islami Bank Ltd. is not different from this
practice. Accounts opening process can be as follows:
Step 1
 Receiving filled up application in bank‘s prescribed form mentioning what
type of account is desired to be opened.
 The form is filled up by the applicant himself/ herself
 Two copies of passport size photographs from individual are taken and in case
of firms photographs of all partners are taken
 Officer are taken information from customer by key information system

36. 36
Step 2
 Applications must submit required documents
 Applications must sign specimen signature sheet and give mandate
 Introducer‘s signature and accounts number-verified by legal officer
Step 3
 Filling & signing up KYC or Know Your Customer Form
 Filling & signing up Owner Information Form
Step 4
 Authorized Officer accepts the application
Step 5
 Minimum balance is deposited-only cash is accepted
Step 6
 Account is opened and a cherub book and pay-in-slip book is given
4.6.1 Information Collected to Open Account:
Accounts opening information that is collected by the Al-Arafah Islami Bank Ltd. varies for each
type of account.
Individual:-
 Name
 Present and Permanent Address
 Date of birth and age
 Nationality
 Tax Information Number (TIN- if available )
 Passport or certificate provided by the employer

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 Photograph of the account holder
 One photograph of the nominee duly attested by the account holder.
 Nominee declaration form
 Money laundering leaflet
Partnership Firm:-
 All the required information mentioned for Individual Accounts; along with,
 Copy of Partnership Dead
 Mandate from the partners is essential – indicating who will operate the account
Limited Company:-
 All the required information mentioned for Individual Accounts; along with,
 Certificate of Incorporation
 Copy of Memorandum and Article of Association
 Certificate of Commencement
 Copy of Resolution of the Board of Directors
4.6.2 Dormant Account:-
If any account is inoperative for more than one year is called dormant account. To operate these
accounts manager permission is necessary.
Transfer of Account:-
 An account can be transferred from branch to branch and only from the
same bank. Following steps are considered for this purpose:
 Application in written to the Manager of the account maintaining branch
 Manager sends a request to the manager of the desired branch of
depositors

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 Sends original Account opening application and specimen signature sheet
with the balance remained in the account at he sent Manager‘s request
 New account is opened at desired branch

4.7 Cheque Clearing:-
Bank receives all kinds of cheque in favor of the client for clearing. When cheque is
received it is necessary to endorse it and cross it specially.
Types of Cheque Explanation Clearing Process
Inward Clearing Cheque Cheque received from the
clearing house of Al-Arafah
Islami Bank Ltd.
Party‘s A/c…Dr. Al-Arafah
Islami Bank Ltd. General
A/c…Cr.
OBC (Outward Bills for
Collection)
Cheques of other branch of
Al-Arafah Islami Bank Ltd.
within its clearing house area.
These cheques are directly
sent to the
respective branch and request
them to sent IBCA. When it
comes, then customer‘s A/c is
credited for the cheque.
Clearing Cheque Cheques another bank within
Al-Arafah Islami Bank Ltd.
clearing house area.
These cheques are sent to
clearing house via Dhanmondi
Branch. When drawee bank
honor the cheques, then the
account of cheque depositors
are credited.

39. 39
Outward Clearing Cheques for another bank
outside the clearing area
If any branch of AIBL exists
within the clearing house area
of drawee bank then AIBL
send the cheque to that branch
of AIBL and sends IBCA to it.
Inward Bills for Collection
(IBC)
From other branch AIBL These cheques are settled by
IBCA, i.e. debiting depositor‘s
account and crediting sender‘s
From another bank outside the
clearing house
These cheques are settled
debiting depositor‘s account
and sending DD, MT, TT in
favor of sender‘s bank.
4.8 Clearing Department:
Cheques clearing section of Al-Arafah Islami Bank Ltd. receives cheque, demand drafts and pay
orders of their clients. Upon the receipt of the instrument the cheque clearing section examines
three types of payment modules.
 Whether the Paying Bank within Sylhet City: The cheques clearing section of Al-
Arafah Islami Bank Ltd. Amberkhana Branch sends Inter Branch Debit Advice
(IBDA) to the head office on the receiving day of the instruments. The main
branch takes those instruments to the clearing house on the following day. If the
instruments are dishonored, Head Office of Al-Arafah Islami Bank Ltd. sends
IBDA to the Al-Arafah Islami Bank Ltd., Amberkhana Branch.
 Whether the Paying Bank of their own branch: The cheque clearing section of Al-
Arafah Islami Bank Ltd., Amberkhana Branch sends Outward Bills for Collection
(OBC) to the concerned paying branch to get Inter Branch Credit Advice (IBCA)

40. 40
from the paying branch. If the paying branch dishonors the instrument, the paying
branch returns it to the Al-Arafah Islami Bank Ltd., Amberkhana Branch
describing why the instrument is dishonored.
 Types of Cheque Collected by Clearing Department:
 Local Bills Collection Cheques (LBC): Local bills collection cheques are those
cheques, which are collected and paid by two different branches of a bank situated
in the same city.
 Outward Bills Collection Cheque (OBC): OBC cheques are those cheques, which
are collected and paid by two different branches of same or different bank situated
in the outstation.
 Transfer Cheque: Transfer Cheques are those cheques, which are collected and
paid by the same branch of Al-Arafah Islami Bank Ltd.
4.8.1 Clearing House:
Clearing House is an arrangement under which member banks agree to meet, through their
representatives, at an appointed time and place to deliver instruments drawn on the other and in
exchange, to receive instruments drawn on them. The net amount payable or receivable as the
case may be, is settled through an account kept with the controlling bank.
Types of Clearing:
 Outward Clearing: Outward clearing means when a particular branch receives
instruments drawn on the other bank within the clearing zone and those
instruments for collection through the clearing arrangement is considered ad
outward clearing for that particular branch.
 Inward Clearing: When a particular branch receives instruments, which drawn
on them and sent by other member bank for collection are treated as inward
clearing.

41. 41
4.9 Remittance:
Sending money from one place to another through some charges is called remittance. To
pa or receive money of customers in the form of remittance from one place to another,
from one person to another inside and outside the national boundary is an earning source
of every bank. Amberkhana Branch, Al-Arafah Islami Bank Ltd. operates both the
foreign and local remittance to serve it‘s customers. In addition, this service is an
important part of country‘s payment system. Through this service, people can transfer
their funds from one place to another place very quickly.
Foreign Remittance:
Foreign remittance is to send money of customers from one place to another, from one
person to another outside the national boundary. Though Amberkhana Branch, Al-Arafah
Islami Bank Ltd. is a non-ad branch, it can able to serve the customers by receiving and
paying their incoming foreign remittance in the form of local currency. Foreign
remittance is received by the bank via some internationally authorized agents.
Local Remittance:-
Sending money of customers in the form of remittance from one place to another, from
one person to another inside and outside the national boundary is another earning source
of every bank. As being a non-ad branch Amberkhana Branch of Al-Arafah Islami Bank
Ltd. only operates the local remittance to serve the customers. In addition, this service is
an important part of country‘s payment system. Through this service, people can transfer
their funds from one place to another place very quickly. There are several techniques for
collecting local remittance. These are:
 Demand Draft (DD)
 Telegraphic Transfer (TT)
 Pay Order

42. 42
4.10 Type of Services
Mudaraba Terms Savings Deposit:
Deposit in monthly installment @Tk.300/-, Tk.500/-, Tk.1000/-Tk.1500/- ; Tk.2000/- is
obtained under the aforesaid scheme for a tenure of 5,8,10 and 12 years and the same is
withdrawal with profit at the end of the tenure.
Monthly Profit based Term Deposit:
Under the above scheme, deposit of Tk. 1.00 lac and multiple thereof are accepted for a
term of 5 (five) years and the bank gave profit thereon Tk. 885 per month per lac and
proportionately on the rest amount of deposit under the category during the year under
review. The aforesaid rate shall, however, be adjustable at the close of calendar year on
finalization of accounts.
Monthly Haj Deposit:
Hajj deposit at monthly installment from 1 (one) year to 20(twenty) years are accepted
under the above scheme to enable the account holder to perform Hajj out of the
accumulated saving with profit.
Onetime Haj Deposit:
Under the above scheme, fixed amount of Hajj deposits are accepted from the clients for
particular term and as per rules profit is accumulated thereon per year in this regard. As and
when the fixed deposit is matured, Hajj expenses are defrayed by the same. Under the scheme,
the guardians may also open Hajj account to enable their successors to perform Hajj. Highest
amount of profit is paid in the above types of deposit by the bank.

43. 43
Savings Investment Deposit:
Deposit under the scheme is accepted by monthly installment and after expiry of the
term, double amount of such savings is given as investment in feasible sectors by the
bank as per choice of the depositors without any collateral security. Any one by saving
under the scheme can take business venture on utilization the amount saved under the
scheme as well as availing bank investment.
Marriage Savings Deposit:
Fixed monthly installment for a particular period is to be deposited to defray the expenses
of marriage and the bank allows double of saving or Tk.30,000/- which is higher as
investment to procure ornaments, furniture, fixture etc., repayable in 24 monthly
installment without any collateral security.
Savings Bond Deposit:
Under this scheme the bank has introduced saving bonds for Tk. 10,000/-, Tk.25,000/-
and Tk. 100,000/- for 3,5 and 8 years. After the completion of the tenure the deposit.
Investment:
The Total investment of the bank stood at Tk.5079.21 million against Tk.3728.41 million
during the corresponding period of last year. The percentage of increase is 36.23% as
against 13.00% in banking sector. The bank extends investments to the clients under the
following modes of investment under Islamic Shariah:
Bai-Murabaha or simply Murabaha:
The terms ―Bai-Murabaha‖ have derived form Arabic words Bai and Ribhum. The word
―Bai‖ means purchase and sale and the word ‗Ribhum‘ means an agreed upon profit. So
Bai-Murabaha means sale for an agreed upon profit. It may be defined as a contract
between a Buyers and a Seller under which the seller sells certain specific goods
permissible under Islamic Shariah and the word Law of the land to the Buyer at a cost
plus and agreed upon profit payable today or on some date in the future in lump-sum or

44. 44
by installments. The profit may be either a fixed sum or based on a percentage of the
price of the goods.
Musharaka:
The word Musharaka is derived from the Arabic word Sharikah meaning partnership.
Islamic jurists point out that the legality and permissibility of Musharakah is based on the
injunctions of the Holy Qura‘n, Sunnah and Ijma (consensus) of the scholars. Musharaka
transaction may be conducted in the following manner: One, two or more entrepreneurs
approach an Islamic Bank to request the financing required for a project. The bank, along
with other partners, provides the necessary capital for the project. All partners including
the Bank have the right to participate in the project. The profit is distributed according to
an agreed ratio. However, losses are shared in exactly the same proportion in which the
different partners have provided the finance for the project.
Mudarabah:
The term Mudarabah refers to a contract between two parties in which one party supplies
capital to the other party for the purpose of engaging in a business activity with the
understanding that any profits will be shared in a mutually agreed upon. Losses, on the
other hand, are the sole responsibility of the provider of the capital. The first party
provides capital and the other party provides the expertise with the purpose of earning
lawful profit (approved by Islamic law) which will be shared in a mutually agreed upon
proportion.
Bai-Muajjal:
The term ‗Bai‘ and ‗Muajjal‘ are derived from the Arabic words ‗Bai‘ and ‗Ajal‘ where
‗Bai‘ means purchase and sale and ‗Ajal‘ means a fixed time or a fixed period. So Bai-
Muajjal is a sale for which payment is made at a future fixed date or within a fixed
period. In short, it is a sale on Credit. It is basically a contract between a buyer and seller
under which the seller sells certain specific goods, permissible under Shariah and law of

45. 45
the country to the buyer at an agreed fixed price payable at a certain fixed future date in
lump-sum or in fixed installments.

46. 46
Tasks Performed During Internship

47. 47
Chapter: 5
Task Performed during internship
5.1 My Specific Job Responsibilities:
I was appointed as an intern at AIBL, Amberkhana Branch which deals with the valued clients
and prospective investors. My major responsibilities lies with the customers, providing
information to their queries, follow up customer intention to the supervisor and also reporting my
respective senior executives to the daily activities, A/C opening, dealing with inward and
outward cheques.
 My specific job responsibilities are given below:
Assist the clients by providing information for account opening:
The task I performed in the GB department. Here the work is to open different types of
accounts & deals with different clients. The core works are
 Helping clients in filling up the account opening form.
 Helping Client by opening different types of FDR account.
 Updating client information in the bank software.
 Updating account opening form.
5.2 Inward Mail Register:
The documents which are usually received from head office or any other
branches are written in inward mail registry book. The due process is:-
 Receiving the document with receive seal.
 Putting an inward serial no in the book as well as in the document.
 Writing the date, reference mo. & particulars of the mail in the book.

48. 48
5.3 Outward Mail Register/Dispatch:
The documents are usually sent to head office or any other branches or person or institution are
written in the outward mail registry book. The process is almost similar to inward mail register
but they are just opposite to each other in nature.
Cheque Book lot entry:
The cheque books which are delivered from the head office are recorded in the cheque book
issue registry book. The process of writing on that book is
 Date of registration
 A/C number and name of A/C holder.
 First cheque leaf number and last cheque leaf number of a cheque book.
 Bank authority use Cheque book register for security purpose. I also have to maintain the
register book.
Check Book delivery:
When a client comes to the bank to avail their cheque book as per their requisition, then the
cheque book is delivered to the client following the process:-
 Finding out the cheque book in the cheque book issue registry book based on date of
new cheque book arrivals.
 Writing the first and last leaf number in the requisition form which is usually attached
with the book taking off requisition form.
 Providing cheque book by keeping the signature of the client.
5.4 Posting Delivered Cheque Book:
When a cheque book is delivered to client, the cheque book leaf numbers must be posted
in the software. The process is:-
 Opening the bank software

49. 49
 Entering the path for cheque book post.
 Entering the account number.
 Entering the first leaf and last leaf number in the respective box.
 Selecting the option ‘automatic deduct chrges’ if the free for the cheque book is
not charged previously.
5.5 Debit Card Delivery:
When the client comes for debit card , the debit card is issued to the client. At the time of
giving debit card to the client or A/C holder, the card number and date is entered in the debit card
issue registry book and the signature of the client is taken in the book.
5.6 Writing Deposit Slip:
Sometimes I have written some deposit receipt for clients. AIBL has its own deposit slip for
clients. In the deposit slip, the name, numbers, and types of account is written. The specific date
is given and the amount of money is written. For any other further query the depositor’s phone
number is taken.
5.7 Receiving Cheque
I had opportunity to receive cheques of of different Bank like UCBL, Sonali Bank,
EXIM Bank, Brac Bank, City Bank, Prime Bank etc. Before receiving cheque, the
following process is maintained:-
 Checking the date of cheque.
 Writing the cheque date and drawee banl name in the specified column of deposit slip.
 Writing the depositors name and phone number.
 Taking the signature of the depositors.
 Putting the ‘Received for collection’ seal in the clients copy.

50. 50
5.8 Writing Cash Debit Voucher:
I performed this task in cash section. I have prepared bills like entertainment (Tea, Sugar,
Coffee), Petrol, Lunch bills through the cash Debit Voucher.
5.9 Shorting Voucher & Matching With the supplementary:
One of important works is to count vouchers and match with the supplementary every
day. While matching the A/C name, number and transaction amount are checked.
5.10 Dealing With client over phone:
Many of the time I dealt with many clients on several issues. Among the issues the keys are:-
 Inviting client for receiving cheque Book.
 Inviting client for receiving Debit Card.
 Inviting client for activing their inactive, freeze account.
5.11 Other activities:
 Make them aware about different types of services,
 Collecting the documents from clients which are necessary for account opening.
 Entry the clearing cheque in registrar..
 Return cheques registrar maintenance
 Bank keeps the daily activities records through Voucher keeping (daily tasks). As an
intern I had done this job.
 Update the daily cash register book for storage purpose.
 Assist the accounts manager according to his instruction
 Receive the customer inquiry by phone calls and answer their inquiries.
 Provide feedback to the senior executives about the customer intention.
 Fill up the KYC form and keep the customer information in the computer for record
purpose.

51. 51
Application of Knowledge gained during BBA

52. 52
Chapter-6:
Application of Knowledge gained During BBA
6.1 Application of Knowledge gained during BBA program has helped to accomplish each
task:
I have studied four years BBA (Bachelor of Business Administration) program to acquire
knowledge on business area. I learnt various method of business and activities of business. I will
describe now that how the knowledge gained during BBA program has helped me to accomplish
each task properly.
6.2 Introduction to Computer Application:
A computer is an electronic tool that can be programmed to do any function. That means it can
be instructed to do whatever we want it to do. Banks hold records of millions of customers.
Every day transaction and customer queries etc are done using computer. Daily, weekly, monthly
and yearly balance sheets are made by computer. From this subject we learnt about the computer
and how to operate different types of applications. Without computer operating skill it’s not easy
to perform very well in any business organization. I was introduced in my computer classes with
the following things-
 Basic concept & background of computer.
 Input device.
 Output device.
 Operating system.
 Application program.
 Computer network & internet etc.
When I worked in the bank it was extremely easy for me to do anything using computer.
Everywhere in this word all business oriented organizations are computerized. Without computer
education even I will not be able to get a job. I am familiar with computer and its operating
system and others. So I didn’t have any problem when I worked with computer.

53. 53
6.3 Principles of Accounting/Cost Accounting and Intermediate Accounting:
I learnt after studying principles of accounting that how to prepare journal, ledger, balance sheet
and income statement etc. Double entry system is the only scientific and reliable for maintaining
accounts. But single entry system is not complete and accounts are not maintained properly. I
noticed that the bank also follow double entry system for accurate and proper accounts. I didn’t
ask the supervisor during banking hour that what are journal, ledger, balance sheet and income
statement. But new employee of the bank was in trouble about accounting related contents.
Because various background employee was in the bank. Debit and Credit system is familiar for
me and it was so easy how to debit and credit. Cost accounting course is designed to give
knowledge about the overall cost recording, cost summarizing and cost reporting process. During
my thesis I noticed that how the bank control cost and reduce cost of production. I was familiar
with cost control and cost reduction techniques so that I didn’t feel any trouble in bank.
6.4 Business Law:
Every business has to follow some rules and regulations by the government. I noticed that
Bangladesh banks suggested and imposed some laws for all the private commercial banks and
United Commercial Bank limited has also following Bangladesh Banks laws. If there is no law
for banks then banks will involved with illegal activities and crimes. Before my thesis I knew
that all institution has some laws because I studied about Business Law. From business law
course I learnt about law of negotiable instrument.
6.5 Principles of Marketing:
Financial success often depends on marketing ability. Finance, operations, accounting and other
business functions will not really matter if there is not sufficient demand of products and services
so the company can make profit. When I was in banks as an intern I was able to identify who are
seller, buyer, customer, user and consumer etc. because I was introduced with those in my
marketing classes. Most of the decisions are taken by head of the bank, only the top of the bank
can make decisions. The power of the branch head is given from head office. Advertising is very
important tool to attract more customers and target market. The bank advertises time to time and
attracting customers. As a BBA student I knew how to advertise properly and techniques of

54. 54
advertising. The bank follows strong and effective marketing strategy and focus on customer
satisfaction. Principles of Marketing helped me to accomplish each task.
6.6 Business Communication:
Business communication is very important for business; it helps how to communicate with
others. If anyone works in an organization, they must respect the formal channels of
communication. This does not mean that there should be no informal communication. All
decisions come from head office and only manager has the power to control the branch. We
learnt when studied business communication that how to work in a group. In group working I
realized that I dealt with various levels of officers and helped them when needed. It’s really hard
to deal it senior and junior level officers because we need to know that how to communicate with
them. But it was pretty good for me, I knew from business communication course how to
communicate. Body language is also another essential factor in an organization. I didn’t show
any of my bad body language, only tried to show positive body language. We got knowledge
from this course about body language in an organization. Business communication course helped
me during my thesis vastly.
6.7 PRINCIPLE OF MANAGEMENT
Management is actually managing the situation. I have learned many principle & theories
in this course. I become successful in my internship program by applying the theoretical
knowledge of several management principles. In the professional setting the knowledge
of management is must for all.
6.8 Banking and Insurance:
I did my thesis in a bank and Banking & Insurance course was very helpful for me, because this
course is bank related. In this course I was introduced with types of bank, functions of bank,
private commercial banks, general and nationalized banks. When I worked in the bank it was
easy for me to do my assigned tasks only because I studied this subject. This course study helps
us to get an exposure to operational environment in Banking, Insurance and other related firms in
the financial service sector. I observed that various educational background employees are
always in trouble when they work. They are not familiar with operational activities of banks.

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6.9 Business Environment:
The word “Environment” refers to the aspects of surroundings. Therefore, Business Environment
may be defined as a set of conditions – Social, Legal, Economical, Political or Institutional that
are uncontrollable in nature and affects the functioning of organization. When we studied this
subject I learnt about Technological environment, Political environment, Social-Cultural and
Global environment etc.
6.10 Management Information & Control System:
This subject helped very much because when I studied this course I learnt about organization,
management and technology. When I was in the bank I easily recognized what are management
and technology and organization. I also learnt about how to manage hardware and software
assets. All works in a bank are done by computer and they use various kinds of software. It was
very easy for me to operate computer and software. Telecommunication is very essential for a
bank and I had knowledge about telecommunication after studying this subject. I observed that
United Commercial Bank Limited uses telecommunication system for daily operation. Without
internet it is not possible to provide internet banking to its customers. I studied about the internet
and the new information technology infrastructure so I did not face any problem during my
thesis period. I also have studied many other subjects which also helped me to accomplish my
each task during thesis.

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Implication of Marketing knowledge in Banking
activities of Al-Arafah Islami Bank Limited

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Chapter: 7
Implication of Marketing knowledge in Banking activities of
Al-Arafah Islami Bank Limited.
1.Segmentation Strategy of Al-arafah Islami Bank Ltd: Al-Arafah Islami Bank Ltd.
has divided the market into different segment which are given here:
By Region: Whole country is divided into Eight region or Division.
By Religion: Population of our country is comprised of different religion such as Muslim,
Hindus, and Christian & Buddhist etc
By Occupation: Professional, Technical, Businessmen, Farmers, Housewives, and Students etc.
Social Class: Lower lowers, upper lowers, Working class, Middle class, Upper middle class,
Upper uppers etc.
2. Targeting Strategy of Al-Arafah Islami Bank Ltd. : Al-Arafah Islami Bank Ltd.
Bank Ltd. follows both undifferentiated & differentiated marketing strategy for targeting their
whole market. Al-Arafah Islami Bank Ltd. targets whole market, it offers same services to all
class people of the society, people from any status, religion, and area can get the services of Al-
Arafah Islami Bank Ltd. It offers convenient services like, Deposit, Investment and Foreign
exchange products/services to its customer through 67 Branches. It also follow the differentiated
marketing strategy by providing or offering some special product/service scheme to a particular
segment of customers, like Agricultural loan only for the farmer, Student Account & Student
loan, Hazz deposit scheme only for the Muslim customer etc.
3. Differentiation: The main differentiation is that although Al-Arafah Islami Bank Ltd. is
Shariah based bank but at the same time it also a Commercial minded Bank Such as, it offers the
customer interest (Riba) free banking service. Interest is strictly prohibited in Islam. So religious

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minded Muslims always prefer islami Bank. Al-Arafah Islami Bank Ltd invests in the productive
sector. Bank works as a partner with its clients.
4. Market Positioning Strategy: Al-Arafah Bank Ltd. is the Shariah based Bank in Bangladesh.
And they positioned their bank as Islami Shariah based schedule commercial bank. As it is an
Islami Shariah based bank so the People who are Muslim have faith in Al-Arafah Bank services.
Al-Arafah Islami Bank Ltd. believes in togetherness with its customers, in its march on the road
to growth & progress with services. To achieve the desired goal, it has intention to pursuit of
excellence at all stages with a climate of continuous improvement. So, the Customer will
motivate to its philosophy & be loyal to its services.
 Integrated Marketing Communications (Promotion Mix) used by the
Al-Arafah Islami Bank Ltd:
Marketing communications focus on immediate awareness, image, or preference goals in the
target market. But today marketers are moving toward viewing communications as managing the
customer relationship overtime. In banking industry relationship is based on trust. Clients always
seek security and safety as well as swift service. Al-Arafah Islami Bank Ltd. provides banking
services to its client. Target customers are the people of all class of our society. Al-Arafah Islami
Bank Ltd. emphasize mostly on social welfare as well as on its business performance. General
Banking System& Marketing Implications their motto. So customers spread positive word of
mouth. Besides this they promote their services through different media, such as:
Advertisement:
 Television Advertising (New Branch Opening).
 Newspaper Ads (New Branch Opening & Special Offers).
 Magazine & Journals.
 Calendar & Note Books.
 Prospectus.
 Annual Report. Etc

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Advertisement Provided On:
1. Television Advertising: Al-Arafah Islami Bank Ltd. informs its target customers through
television ads especially when a New Branch is likely to open. Television Ads help people to
know the location and date of commencing banking services in their localities.
2. Newspaper Advertising: Bank publishes advertisement of launching a branch and other
special offers in different Daily Newspaper. It is needed to inform the customer about new
services such as ATM booth location, Xpress money service, Address change of a Branch,
Consumer banking, Household durables services etc. Newspaper ads are the most effective
media for these services.
Different National Dailies chosen for ads are:
 The Daily Prothom Alo
 Kaler Khanto
 The Daily Naya Diganta
 The Daily Sangram
 The Daily star

3. Magazine & Journals: Advertisement of consumer banking such as household durables
schemes, Special scheme for medical instrument, office furniture, computer, car investment
scheme and other services offered by the bank is published through this media.
4. Billboards: Al-Arafah Islami Bank Ltd. doesn’t use the billboard but Digital and plastic
signboard of different branches also a kind of advertising. ATM Booth located in different areas
of the cities represent the bank’s logo.

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Findings, Recommendation & Conclusion

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Chapter: 8
Findings, Recommendation & Conclusion
8.1 Findings
While working on Al-Arfah Islami Bank, Amberkhana Branch, Sylhet, I gained a newer kind of
experience. Findings are accumulated after identifying and analyzing the Investment
Management Process, Which are completely from my point of view.
1. The Bank Provides less emphasis on long term financing.
2. They are too slow at the time of giving service to their clients.
3. They don’t have enough space for the clients.
4. Al investment sectors are not acceptable by Islamic rules and regulations, like alcohol
Industry, Tobacco factory etc. These sectors are prohibited for the bank to invest.
5. Through AIBL is committed to avoid interest but they cannot do this fully. According to
the rules of Bangladesh Bank they must maintain process of SLR and SLS.
6. Day by Day new upcoming banks are coming with their new investment services, which
could be threats for AIBL , Because AIBL has limited investment schemes.
7. In terms of repayment large loan has performed better than small sized loan.

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8.2 Recommendations:
According to my findings and knowledge , I think the authority of the AIBL should
take some steps which can help them to survive in the banking sectoreven
economic world.
Everything needed modification for the importance of savings.
1. 1. The Bank should Provides more emphasis on long term financing.
2. They should develop at the time of giving service to the clients.
3. Arranging more space for clients.
4. The bank should diversify their investment into different modes such as Bai-Salam, Bai-
Muajjal, SME, Instead of concentrating on Bai-Mrabaha and HPSM investment mode.
5. Bank should offer more facilities to the customer’s such as credit visa card, ATM
machine etc.
6. AIBL must develop electronic banking system to moderate the service. Technology
advantage of a bank ensuring its competitive edge in the market place can only be
achieved by efficient manpower. It is market share to reduce its operating cost and to
generate new revenue. Electronic banking system also allows increased access to the
financial system by its customers.
7. Now a day’s world is going very fast. Now most of the banks open online customer
service system. So in order to compete in the world market they should adopt online
banking system.
8. They need to provide more training facilities, more computerized system and strong
network connection.

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8.3 CONCLUSIONS
Though the concept of Islamic Banking is no longer new thing in the world. Observing its
operational success more than 300 Islamic banking and financial institutions in about 50
countries have been established globally. At present there are six Islamic Banks operating
in our country and they are making notable contribution through performing their
activities with better efforts. However, Al-Arafah Banks are not free from limitations.
Hence, there may be a scope to make some recommendations.
 There is no legal framework to regulate the Al-Arafah banks on Islamic
Principles. The traditional regulatory frameworks are neither suitable nor
sufficient to ensure the growth and prosper of the Al-Arafah banks. So, up to date
Islamic banking laws sare very essential.
 Some financing instruments approved by Islamic Shariah should be introduced so
that investors may comfortably put their funds into those financial instruments
other than the interest based debentures etc.
 Islamic financial organizations should be set up country-wide. If it is made
possible it will help growth of Islamic banks in Bangladesh by possible exchange
of Cooperation in various ways.
 If Al-Arafah Banks adopt professionalism within the framework of Shariah, they
will be able to earn handsome "halal" profit and pay higher return to the
depositors and share holders. Ultimately, public will get more confidence on this
type of banking.
 Islamic economic system is necessary for the growth of Islamic banking
institutions.
Eventually we say the gradual and successful globalization of Islamic banking coupled
with growing awareness of the people about its financial and social benefits makes it
clear that the next century is going to be the century of Al-Arafah banking.

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REFERENCES & ACRONYMS

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Book References:
 Kotler, P.,& Armstrong, G (2014-2015). Principles of Marketing 14th Edition,
Prentice Hall, New Delhi.
 Debnath, Dr.R.M. (2015-2016). Business of Banking, Page no. 28-141
 Gitman, L. J., & Zutter, C. J. (2015-2017). Principles of Managerial Finance 13th
Edition, Page no 4-11.
 Ali, A.S., & Hawlader, A.R. (2014) Banking Law & Practice (Revised Edition),
Page no10-165.
 Islamic Banking; By Dr. Mohammad Nurul Islam.
Reports:
 Annual Report of Al-Arafah Islami Bank Limited (2017)
 Annul Report of Al-Arafah Islami Bank Limited (2016)
 Al-Arafah Islami Bank web site, www.al-arafahbank.com
 “SHARIAH MANUEL” published by Al-Arafah Islami Bank Limited.
 Several booklets from Al-Arafah Islami Bank Ltd.
 Several newsletter’s from Al-Arafah Islami Bank Ltd.
Web References:
(1) www.al-arafahbank.com
(2) www.bangladesh-bank.org.bd.com
(3) www.facebook.com/alarafah.bd
(4) https://en.m.wikipedia.org/wiki/al-arafah_bank
(5) https://en.m.wikipedia.org/wiki/list_of_banks_in_bangladesh

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Acronyms
AIBL = Al-Arafah Islami Bank Limited
MU = Metropolitan University
SAW = Sallallahu alayhi wa Salam
IDB = Islamic Development Bank
IERB = Islamic Economics Research Bureau
BIBA = Bangladesh Islamic Bankers’ Association
SME = Small Medium Entrepreneurship
MD = Managing Director
DMD = Deputy Managing Director
EVP = Executive Vice President
SVP = Senior vice President
VP = Vice President
AVP = Assistant Vice President
FAVP = First Assistant Vice President
SPO = Senior Principle Officer
PO = Principle Officer
SO = Senior Officer
MTO = Management Trainee Officer

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BB = Bangladesh Bank
OB = Online Banking
AGM = Annual General Meeting
EGM = Extraordinary General Meeting
CD = Al Wadiah Current Deposit
SN = Mudaraba Short Notice Deposit
MSD = Mudaraba Saving Deposit
PTD = Monthly Profit based Term Deposit
MHD = Al-Ararah Monthly Hajj Deposit
THD = Al-Arafah Termed Hajj Deposit
FCD = Foreign Currency Deposit
PDS = Pension Deposit Scheme
MSD = Mudaraba Millionaire Deposit Scheme
LSD = Mudaraba Lakhpoti Deposit Scheme
MKDS = Mudaraba Kotipoti Deposit Scheme
PO= Pay Order
TAT = Turn-around Time
ATM = Automated Teller Machine

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