1. Submitted By:
Group Name: Voice of Boys
SL. NO. NAME ID
01 Syed Abdus Salam (GL) MBAFM29152330
02 Md. Mahbubur Rahman MBAWM29152002
03 Md. Mainul Hossain MBAWM29152003
04 Md. Saydul Islam MBAFM29152324
05 Md. Imran Ahmed MBARM29152411

2.  Bangladesh is one of the largest Muslim Countries in the world.
The people of this country are deeply committed to lead an
Islamic way of life which is based on the principle of Holy Quran
and the Sunnah. The Al-Arafah Islami Bank which is established
on June 18, 1995 is the true reflection of this inner urge of its
people which started functioning with effect from September 27,
1995.
 Purpose of the Report:
The student of MBA program of Bangladesh Islami University is
required to undergo an assignment for the fulfillment of the
International Financial Management course. As a part of the
program, we were been placed in Al-Arafah Islami Bank Ltd. with
the activities of Foreign Exchange operation of Al-Arafah Islami
Bank Ltd.. From this perspective, we have prepared this report.
We truly appreciate this assignment and do hope that it will be a
great importance in building our future carrier.

3.  General Objective of the Report:
The main purpose of the study to know the overall Foreign Exchange operational
performance of the Al-Arafah Islami Bank Ltd and fulfilling the requirements of the
MBA program. The objective of Islamic banking is not only to earn profit but also to
do good and welfare to the people.
 Specific Objectives are:
1. To have a practical relation & reliability of the topics we have achieved from
textual background in our educational life.
2. To develop understanding of Business Communication application in practical field.
3. To develop our capabilities as an employee in realistic field of the job market.
4. To improve corresponding, report writing ability.
5. Presentation of an introduction to the organization Al Arafah Islami Bank Ltd. as a
whole.
6. To familiarize with practical job environment.
7. To have an exposure on the financial institutions such as banking environment of
Bangladesh.
8. To gain experience on different functions of the different departments of the bank.
9. To observe banker-customer relationship.
10. To relate the theories of banking with the practical in banking

4.  Scope of the Report
As we were working for assignment on Al-Arafah Islami Bank
Limited. We have gotten the opportunity to learn different
part of banking system as well as Foreign Exchange
Operation.
 METHODOLOGY:
Primary sources: The primary source of information is as
follows:
1. Face-to-face conversation with the bank official and staffs.
Secondary Sources: The secondary sources of information are:
1. Annual report of AIBL.
2. Materials and files of AIBL, Foreign Exchange Branch.
3. Website of AIBL.
4. Unpublished data received from the branch.
5. General information of banking activities.

5. 1. The work is mainly based on interpreting primary data. There is insufficiency of Secondary
data, but for the purpose of the betterment of the present position of the bank’s accounting
procedure, collecting, interpreting and integrating primary data has been utilized.
2. Though a very comprehensive and a well-organized report has been tried to be produced but
there are still some limitations present here.
3.
4. The communication gap among the different personnel because of excessive workload.
5. Inexperience about practical work.
6. Because of sensitiveness, the department does not want to disclose information about the
financial situation, which leads to do report.
7. Lack of accessibility to respondents.
8. The bank authorities are so busy that they could not give me sufficient time for discussion
about Accounting Procedure and its problems.
9. Dealing with some ambivalent information.
10. Problems for lack of my research work
11. Clients are not always interested to spend time for interviews.
12. The main constraint was insufficiency of information, which is highly required for the study. It
was unable to provide some formatted documents and data for the study.
13. Since the bank personnel were very busy, they failed to give me enough time to complete the
report.
14. The clients were very busy. So, they were unable to give me much time for interview.
15. Such a study carried out by me for the first time. So, inexperience is one of the main factors
that constituted the limitation of the study.

6.  Islam provides us a complete lifestyle. Main objective of Islam lifestyle is to be successful
both in our mortal and immortal life. Therefore in every aspect of our life we should
follow the doctrine of Al-Quran and lifestyle of Hazrat Muhammad (sm) for our supreme
success. Al-Arafah Islami Bank started its journey in 1995 with the said principles in mind
and to introduce a modern banking system based on Al-Quran and Sunnah.
 Objective of AIBL:
1. Al-Arafah Islami Bank Limited is Islamic Banking institutions that operates with the
objectives implement and materialize the economic and financial principles of Islamic in
the banking arena. The objectives of AIBL are not only to earn profit, but also to do good
and welfare to the people. The main objectives of AIBL are listed below-
2. To establish participatory banking instead of banking on debtor creditor relationship
3. To invest through different modes permitted under Islamic Shariah
4. To accepts deposits on profit loss sharing basis
5. To establish as welfare-oriented banking system
6. To extend co-operation to the poor, the helpless and the low income group for their
economic up liftmen
7. To play a vital role in human development and employment generation
8. To contribute towards balances growth and development of the country through
investment operations particularly in the less developed areas
9. To contribute in achieving the ultimate goal of Islamic economic system
10. To conduct interest free banking

7. 1. All activities are conducted and interest free system according
to the Islamic shariah
2. Its investment policies under different modes are fully shariah
complain
3. During the year 2015, 70% of the investment income has been
distributed among the Mudaraba depositors
4. It believes in providing dedicated services to the clients
imbued with Islamic spirit of brotherhood, peace and
fraternity.
5. The bank is committed towards establishing welfare oriented
banking system to meet the needs of low income and
underprivileged class of people.
6. The bank upholds the Islamic values of establishment of just
economic system through social emancipation and equitable
distribution of wealth.

8. Particulars 2012 2013 2014
Investment income 10515313 62561393 19725917293
Profit paid to depositors 00 -46198885 -12616773920
Net investment income 10515313 16362508 7109143373
Commission, Exchange
and other income
3574590 9521466 1938841572
Total operating income 14089903 25883974 9595019864
Total operating expense 3437916 13846830 3261569623
Profit before tax and
provision
10651988 12037144 6333450240
Provision on investment
and others
00 9628521 1827328613
Profit before Tax 10651988 2408623 4486590033
Net profit after Tax 7556655 56086 2324953693
Earning per share(EPS) 0.1511 0.0011 2.20

9. Mission of AIBL:
1. Achieving the satisfaction of Almighty Allah both here& hereafter
2. Proliferation of Shariah Based Banking practices
3. Quality financial services adopting the latest technology
4. Fast and efficient customer service
5. Maintaining high standard of business ethics
6. Balanced growth
7. Steady& competitive return on share holders’ equity
8. Innovative banking at a competitive price
9. Attract and retain quality human resources
10. Extending commitment to the growth of national economy
11. Involving more in Micro and SME financing
Vision of AIBL:
1. To operate based on Islamic principles of transactions along with ensuring justice
and equity in the economy.
2. To be a pioneer in Islami Banking in Bangladesh and contribute significantly to the
growth of the national economy
3. To improve Banker customer relationship through improving customer service
4. To develop now and innovate product/service through integration of technology
and policy and principle

10. At the end of current year, the number of depositors stood at 291928 and the
amount deposit has accumulated to TK.27566.33 million. The total numbers
investors are 15855 and total investment extended to them was a sum of taka
28854.66 million.
The bank has earned TK.2300.48 million and incurred an expense of
TK.1202.71 million in the current year. At the end of the year the profit before
tax has stood TK.1099.77 million.
Modes of Investment:
 HPSM
 Mudaraba
 Musharaka
 Bai-Muajjal
 Bai- Salam
 Bai-Istisna
 Bai-Murabaha

11. In the Dilkusha branch, we worked mainly in this section. I prepared
several voucher for foreign remittance. Different types of remittance
come from different countries. In Dilkusha branch, remittance is an
important section. Every day huge remittance comes from several
countries. Besides I prepared import file. Every month AIBL have to
submit the import, export and remittance file to the Bangladesh
Bank.
We have done the following important tasks
along with the prudent employees
1. Opening and payment settlement of L/C
2. Insurance of shipping guarantee
3. Advising L/C
4. Preparation of daily and weekly statement
5. Voucher making or issuing
6. Amendment of L/C and register maintaining

12. Learning points:
 We have learnt so many operations about the banking sectors especially AIBL banking sector. The
following statement that I have learnt and that is given below
 How to open several types of accounts
 What are the requirements for opening different types of account?
 How clients can gather their account statement and know the balances.
 What are the procedures to close an account?
 How to collect the new cheque.
 How foreign exchange section operates their operation.
 How foreign remittance for outward
 How clearing house operates their operation.
 I have learnt about several types of investment modes of AIBL.
 How to collect foreign remittance and how do they reach to clients.
 How to open Letter of Credit
 How to import process
 How to export process
 I have learnt a systematic life through internship period
 How to deal with customer
 I have learnt about TT, DD and PO
 How each section of the branch provides the services to their clients?
 How to collect cheque from clients.

14. To import a person should be competent to be an “Importer”. According
to Import and Export control Act 1950, the office of Chief Controller of
Import and Export provides the registration (IRC) to the importer. After
obtaining this person has to secure a letter of credit authorization from
Bangladesh Bank. And then a person becomes a qualified importer. He is
the person who requests or instructs to open an L/C. he is also called
opener or applicant of the credit.
Importer’s Application for L/C Limit Margin
To have an import L/C limit, an importer submits an application to the
Department of Al-Arafah Islami Bank Ltd. furnishing the following
information:
1. Full particulars of bank account.
2. Nature of business.
3. Required amount of limit.
4. Payment terms and conditions.
5. Goods to be imported.
6. Offered security.
7. Repayment schedule.

15. Bill of exchange
A Bill of Exchange is an instruction by the exporter (drawer) to the importer or
the importer’s bank to make payment of the amount mentioned in it. A Bill of
Exchange is a negotiable instrument and is governed by the Negotiable
Instruments Act. The bill under a letter of credit may be drawn in the issuing
bank or another drawee bank but not on the importer. If the credit
nevertheless calls for a bill on the applicant, the bank will consider such bills
as additional documents. The various types of bills are:
 D/A and D/P bills
A usance bill may be on D/A or D/P terms. If it is on D/a terms
(Documents against acceptance), the collecting bank is to deliver the
documents to the drawee on the acceptance of the bill by him. The
payment will be made by the drawee on the due date of the bill. For
the period from the date of acceptance to the date of payment, the
bank remains unsecured. If it is a D/P bill (Documents against
payment), the documents will be delivered to the drawee only on
payment until which time they are retained by the bank. Therefore,
the bank retains control over goods until payment is received.

16. Inland and foreign bills
 A bill, which is drawn in Bangladesh and made payable in or drawn upon any person
resident in Bangladesh, is an inland bill. Thus, an inland bill must fulfill both the
conditions that (i) it is drawn in Bangladesh and (ii) it is payable in Bangladesh or
drawn on person resident in Bangladesh (even though payable abroad). Any bill that
does not fulfill either of the conditions is a foreign bill. Thus, a bill drawn in
Bangladesh, payable at a place outside Bangladesh by a person resident outside
Bangladesh and a bill drawn at a place outside Bangladesh, but payable in
Bangladesh are foreign bills.
 Marine Insurance Policy
The loss or damage to goods during the voyage or shipment would affect any one or
more parties involved in the transaction, viz., the importer, the exporter, the
shipping company and the bank which has paid against the documents covering the
goods. Marine insurance offers the desired cover against loss of or damage to the
goods during the transaction. It allows free flow of international trade by absorbing
an important uncertainty connected with it.
Marine insurance may cover the ship (hull insurance) or the goods (cargo
insurance). The consideration for which a marine insurance contract is undertaken is
the ‘premium’. The insurance may be for either partial loss or total loss. The
applicant must submit the insurance cover note and the money receipt with other
relevant documents to the advising bank.

17. Invoices
Commercial Invoice
A commercial invoice is a statement containing full details of the goods
sipped. The general contents of a commercial invoice used in foreign
trade are:
1. Names and addresses of the seller and buyer;
2. Details of goods shipped-quantity, quality, description and value;
3. Packing details and packing marks;
4. Price and amount payable by the buyer;
5. Terms of trade-FOB, CFR OR CIF, etc;
6. Details of freight charges, insurance premia and other chargers;
7. Reference to the sale contract in fulfillment of which the shipment is
made;
8. Name of the vessel in which the goods are shipped; and
9. Reference to the license number under which the import is made.

18. Entering into an Export contract
1. Product, Standards and Specifications
2. Quantity
3. Inspection
4. Total Value of Contract
5. Terms of Delivery
6. Taxes, Duties and Charges
7. Period of Delivery/Shipment
8. Packing, Labeling and Marking
9. Terms of Payment– Amount/Mode & Currency
10. Discounts and Commissions
11. Licenses and Permits
12. Insurance
13. Documentary Requirements
14. Guarantee
15. Force Majeure of Excuse for Non-performance of contract
16. Remedies

19. Export Pricing and Costing
1. Range of products offered
2. Prompt deliveries and continuity in supply
3. After-sales service in products like machine tools,
consumer durables
4. Product differentiation and brand image
5. Frequency of purchase
6. Presumed relationship between quality and price
7. Specialty value goods and gift items
8. Credit offered
9. Preference or prejudice for products originating from a
particular source
10. Aggressive marketing and sales promotion
11. Prompt acceptance and settlement of claims
12. Unique value goods and gift items

20. Papers Requirement for new Export
1. Export Realization Certificate (ERC).
2. Trade License.
3. Membership Certificate Form Chamber/ EPB.
4. Account To Be Maintained With Bank.
5. Export L/C Contract.
6. EXP Form to Be Certified.
7. TIN Certificate.
8. VAT Certificate.
9. Memorandum and Article of Association of the Company.
10. Confident Credit Report to Be Obtained of the Importer.
11. Registered Partnership Deed In Case of Partnership Concern.
Preparation of Exports Documents
1. Bill of exchange or Draft.
2. Bill of Lading.
3. Invoice.
4. Insurance Policy/ Certificate.
5. Certificate of Origin.
6. Inspection Certificate.
7. Consular Invoice.
8. Packing List.
9. Quality Control Certificate.
10. GSP Certificate.
11. Photocopy-sanitary Certificate.

21. Export Financing
1. Export Cash Credit (ECC).
2. Packing Credit (PC)
3. Back-to-Back Credit Facility (BTB).
4. Foreign Documentary Bills Purchased (FDBP).
Processing and Opening of Back-to-Back Letter of Credit
1. Full Particulars of Bank Account.
2. Balance Sheet.
3. Statement of Assets & Liability.
4. Trade License.
5. Valid Bonded Warehouse License.
6. Membership Certificate.
7. Income Tax Declaration.
8. Memorandum of Articles.
9. Partnership Deed.
10. Resolution.
11. Photographs of Al Directors.

22. Findings:
1. In year 2015 import of Dilkusha branch of AIBL was in Second highest position where the
amount was TK.600.17 crore.
2. In year 2015 the export through Dilkusha branch of AIBL Bank Ltd was in good
position. Dilkusha Br of AIBL in 2015 there was a Second highest position and it was TK.900
Appx. crore.
3. Inward remittance has not seriously affected by economic crisis as other foreign exchange
activities. Though the growth rate has slightly decreased, still now it is representing a positive
growth.
4. The export of huge manpower in the different country is the main strength of the inward
remittance that comes through AIBL.
5. Total import of the branch is less then total export, if we express import as percentage of
export than we can see Import is only 25% to 34% of Export.
6. Letter of credit (L/C) opening system for the importer is not an easy process. For processing of
L/C document, it requires huge amount of time and money as well.
7. The existing clients of Foreign Exchange activities of the bank get more benefit than newer.
8. Though the maximum of the foreign exchange Foreign Exchange clients are giants in nature,
the number of clients is very small in the foreign exchange branch.
9. There has a lack of manpower in the foreign exchange division. Some important task of foreign
exchange division are hampered, even some case not accomplished in due time only because of
the crisis of manpower.
10. The major sector of Import and Export the foreign exchange branch deal with is the product of
readymade garments industry.
11. The bank is circulating in a traditional way. The way of serving customer is not up to the mark.

23. Recommendations:
1. The number of exporter and importer who operate through this bank is not enough to achieve the goal. So AIBL
should offer more facilities to attract them to be their client.
2. In addition with the present services they should include more services. It is badly needed to provide more
services to the customer in order to compete in the market.
3. Banking is a service-oriented marketing. Its business profit depends on its service quality. That’s why the
authority should always be aware about their service quality.
4. Foreign exchange department should be fully computerized that the exchange process would be convenient for
both the bankers and the clients.
5. The Bank should increase their number of branches and foreign exchange department in other branch. Because
they cannot compete in the market for their few number foreign exchange department.
6. Bank should offer more facilities to the customers such as credit card, visa card, ATM machine etc to survive in
the competition.
7. On-line banking should be introduced for better customer services and to eliminate risk of sending document via
post and risk of loss. It also increases quick fund transfer and better satisfaction from customer.
8. Proper Banking software should be used to get best benefit from this department.
9. Staff meetings and departmental meetings at the branch level must be increased to develop service quality as
well as problem solving
10. The bank should give an aggressive advertisement campaign to build up a strong image and reputation the
potential customer.
11. AIBL should use the latest banking technology to provide better services to the customers. It will also attract the
customer’s of international banks.
12. AIBL should pursue advertising campaign in order to build a strong image among the people. They should carry
out aggressive marketing campaign to attract clients.
13. AIBL should offer different types of loans to their own staffs immediately after confirming their job. This loan
will influence them for better performance.

24. Conclusion:
Because of International Financial Management course, we
got the chance to observe the overall activities of a branch
commencing from foreign exchange. We also got the scope
to act together with high officials and were informed
about their prospects & perceptions about the Bank’s
services. During my interaction with the employees &
customers, I understood that there is the existence of
customer dissatisfaction in some cases. The Bank is
developing its general banking & foreign exchange
activities day by day with changing industry situation but
the rate of change of such speed needs to be increased.
The Bank has the opportunity to develop a leadership
position in the industry but new significant strategy ought
to be made. I would like to say that this assignment about
AIBL has developed our practical knowledge of Business
Administration & made our MBA education more realistic. I
desire all the best for the Bank.