Internship report on Investment Management: Evidence from Al-Arafah Islami Bank Ltd.

INTERNSHIP REPORT
ON
Supervised By
Md. Ashanuzzaman
Lecturer
Dept. Of Accounting and Information Systems
PREPARED BY
Md. Abdulla Al Roman
ID: 1206001
Registration No.: 000003507
Session: 2012-13
BBA 5TH Batch
DATE OF SUBMISSION
THURSDAY, 14th September, 2017
A Case Study of Investment Management: Evidence from Al-Arafah Islami Bank Limited
Course Code: AIS4207

LETTER OF TRANSMITTAL
14th
September, 2017
Head of the Department
Accounting & Information Systems
Begum Rokeya University, Rangpur
Medium:
Md. Ashanuzzaman
Lecturer
Subject: Submission of Internship Report.
Dear Sir,
This is my pleasure to present his internship report entitled "A Case Study of Investment
Management, Evidence from Al-Arafah Islami Bank Limited." I have conducted my internship
program in Al-Arafah Islami Bank Limited, Rangpur Branch 15, Central Road, Payrachattar,
Rangpur 0521-55830, 01773-268000) under your close supervision.
I believe that knowledge and experience I gathered during the internship period will be helpful in my
future professional life. I will be grateful to you if you accept the report. I will be available for
defense on this report at any time.
Your support in this regard will be highly appreciated.
Thanking you.
Sincerely yours
Md. Abdulla Al Roman
ID: 1206001
Registration No.: 000003507
Session: 2012-13
BBA 5th Batch

Acceptance Letter
This is to certify that the internship report on “A CASE STUDY OF INVESTMENT
MANAGEMENT, EVIDENCE FROM AL-ARAFAH ISLAMI BANK LIMITED” has been
prepared by Md. Abdulla Al Roman, BBA 5th
batch 4th Year 2th Semester, ID.: 1206001, Reg.:
000003507, Session: 2012-13, Department of Accounting and Information Systems, Begum
Rokeya university, Rangpur, under my supervision and guidance & He has successfully
completed this report.
I wish his success at every sphere of life.
Md. Ashanuzzaman
Lecturer
Department of Accounting and Information Systems
Page I ii

TO WHOM IT MAY CONCERN
This is my immense pleasure to certify that, Md. Abdulla Al Roman, a student of BBA 2016,
Department of Accounting and Information Systems, Begum Rokeya University, Rangpur,
with ID.No.: 1206001, Registration No.: 00003507, Session: 2012-13, has completed three
(03) months internship program at Al-Arafah Islami Bank, Rangpur Branch 15, Central Road,
Payrachattar, Rangpur, from 1st
June to 30th
August 2017 with sincerity and honesty. He
becomes conversant with human resource management practice, general banking systems such
as account opening process, activation as well as front desk operation with utmost care.
I wish him every success in his life.
Md. Kamrul Ahsan
FAVP & Manager
Rangpur Branch, Rangpur

Page | v
ACKNOWLEDGEMENT
Completion of this report has made me grateful to a number of persons. First of all, I
would like to acknowledge my supervisor and teacher Md. Ashanuzzaman, lecturer, dept.
of Accounting & Information Systems not only for giving the opportunity to prepare the
report but also for providing a lot of support to improve the report. He was always
available when i needed his help, suggestions and guidelines. I am also grateful to Mr.
Md. Kamrul Ahsan, FAVP & Manager, Al-Arafah Islami Bank Limited, Rangpur for
giving me the valuable opportunity to do my internship program and supporting me
with knowledge and resources. I am also grateful to the entire Team Rangpur Branch
15, Central Road, Payrachattar, Rangpur Branch of Al-Arafah Islami Bank Limited as
they had always been there for me when the i needed them the most. Their active
participation to all me questions, queries during my internship has made this journey a
true success. Especially I want to thank my organizational supervisor Mr. Md. Kamrul
Ahsan, FAVP & Manager. I would like to name here Mr. Md. Tariqul Islam (FAVP), Mr.
Rajib Al Shams (Senior Executive Officer), Mr. Md. Shoyebur Rahman (Senior
Executive Officer) & Mr.Golam Sorwar Prodhan (PO). Thanks to all of them for
providing valuable suggestions and information to prepare this report. It was my
privilege and I felt truly honored working with such a wonderful team.

Page | iv
PREFACE
First of all, I would like to be grateful to the Almighty Allah, the merciful & the benevolent
that has enabled me to complete this report.
The internship, a part of the academic discipline, for the BBA students has been
designed to acquire practical knowledge. It is expected that the integration of knowledge
in theories and practices will enable us to become effective. Through this program, I
have got the chance to acquire some experience in a reputed bank. Which is expected
to enlighten me career.
It's really a great opportunity to have the chance to make a report on various aspects of
the
bank. I have chosen " Investment Management of Al-Arafah Islami Bank Limited" as
subject matter for my internship program due to personal curiosity & interest to achieve
some practical knowledge about this sector. Besides this banking activity is much
important for the economic development. Without bank it’s difficult to run financial
activities or operation. So it’s normally claims a research on it for better understanding
at present.
Finally, it is my earnest & sincere hope that this report on "A Case Study on Investment
Management, Evidence from Al-Arafah Islami Bank Limited, Rangpur” would be found
useful by the individuals.
I tried to make the report effective, informative and representative.

EXECUTIVE SUMMARY
The researcher has prepared his internship report based on the three months long
internship program that he had successfully completed in Al-Arafah Islami Bank Limited,
15, Central Road, Payrachattar, Rangpur from 01st June 2017 to 30th Aug 2017 as a
requirement of his BBA program in, Begum Rokeya university, Rangpur. His topic is
Investment Management of Al-Arafah Islami Bank Limited. In this report he described
about Islamic concept about investment, available investment products of AIBL, condition
of investment of the bank, and how they manage their invested money. To describe these
things, He tried to present necessary table, graphs and exact figure of the money deployed
in various sectors.
The first chapter shows different aspects of the report like a brief introduction, origin of the
report, statement of the Issue, objectives, significance, methodology & limitations of the
study.
Second chapter shows a brief company overview. In this section different important data
about Al-Arafah Islami Bank Limited is provided. Background, vision, mission,
commitments, special features, product line, organogram of AIBL and some other
necessary company related information is provided in this chapter.
The third chapter is about Theoretical review. In this chapter he described the concepts
of Islamic banking and basics about my internship report topic investment management
under Islami Sharia.
The next chapter is the most important chapter of this report. Chapter fourth describes
investment management of AIBL. It has been described how the bank allocates money to
different investment portfolio to earn profit. It has been showed current investment position
(on available information) of the bank and some previous records. It is also described
Sharia concept about investment of the bank. There is a detailed description about the
investment products so that their managing strategy could be understood more clearly.
The Fifth chapter shows the findings of his study. There the researcher described the
condition of investment of the bank for last two years. Then he stated some problems he
realized about the bank that need to be fixed for the improvement of investment related
profitability. Then he briefly presented his SWOT analysis of AIBL.
Finally, in the last chapter the researcher stated some recommendations for the
improvement of investment condition of the bank and then the conclusion has been made.
Page | vi

Page | vii
Page
Letter of Transmittal
Acceptance Letter
To whom It May Concern
Acknowledgements
Preface
Executive Summary
i
ii
iii
iv
v
vi
Chapter 1: INTRODUCTION
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
Introduction
Literature Review
Origin of the Report
Statement of the Issue
Objectives of the Study
Significance of the Study
Methodology of the Study
Limitations of the Study
2
2
3
3
4
4
5
Chapter 2: COMPANY OVERVIEW
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
Background of AIBL
Vision
Mission
Commitments
Special Features of the Bank
Corporate Information
Corporate Culture
AIBL at a Glance
Financial Highlights of Last 5 Years
Performance at a Glance
Credit Rating
7
7
7
8
8
9
9
10
11
12
12
List of Contents

2.12 Products and Services Provided by AIBL 14
Page I viii
Chapter 3: THEORETICAL OVERVIEW
3.1
3.2
3.3
3.4
3.5
3.6
3.7
Islamic Banking
Principles of Islamic Banking
Islami Banking in Bangladesh
Sharia Investments
Type of Funds
Investment Restrictions
Investment Management
16
16
17
19
20
21
21

Chapter 4: INVESTMENT MANAGEMENT
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
Investment of AIBL
Investment Growth
Sector Wise Investment 2016
Classified Investment Ratio
Micro, Small & Medium Enterprises (MSME) Investment
Agricultural Investment
Investment for Growing Spices at a Lowest Profit Rate (4%)
Al-Arafah Khamerbari Investment Scheme
Investment on Women Entrepreneurs
Grameen Small Investment Scheme (GSIS)
Al-Arafah Solar Energy Investment Scheme
Modes of Investment of AIBL
Investment processing of AIBL
23
23
24
26
26
27
27
27
28
28
29
30
34
Chapter 5: FINDINGS
5.1
5.2
5.3
Findings
Problems
SWOT Analysis of AIBL
40
41
42
Chapter 6: RECOMMENDATIONS & CONCLUSIONS
6.1
6.2
Recommendations
Conclusions
References
Appendix
45
46
47
48
Page I ix

12
Dept. of Accounting & Information Systems
LIST OF FIGURES
Figure 2A Performance at a Glance (In million taka)
Figure 2BProducts and Services Provided by AIBL 14
Figure 4A Investment Growth (In million taka)
Figure 4BSector Wise Investment (%)
Figure 4C Classified Investment Ratio (%)
23
24
26
10
Page
Chapter 1
INTRODUCTION
Topics
1.1 Introduction
1.2. Literature Review
1.3 Origin of the Report
1.4 Statement of the Issue
1.5 Objectives of the Study
1.6 Significance of the Study
1.7 Methodology of the Study
1.8 Limitations of the Study
Page I x
Figure 4D Investment Process (step by step) of AIBL 38

13
1.1 Introduction
Bangladesh is one of the largest Muslim countries in the world. The people of this country is deeply
commit to Islamic way of life as enshrined in the Holy Qur'an and the Sunnah. Naturally, it remains
a deep cry in their hearts to fashion and design them economic lives in accordance with the precepts
of Islam. The establishment of Al-Arafah Islami Bank Limited on 18 June 1995 is the true reflection
of this inner urge of its people, which started functioning with effect from 27 September 1995. This
Islamic banking is banking or banking activity that is consistent with the principles of sharia and its
practical application through the development of Islamic economics. As such, a more correct term
for 'Islami banking' is 'Sharia compliant finance'. Sharia prohibits acceptance of specific interest or
fees for loans of money (known as riba, or usury), whether the payment is fixed or floating.
Investment in businesses that provide goods or services considered contrary to Islamic principles
(e.g. pork or alcohol) is also haraam ("sinful and prohibited"). Although these prohibitions have
been applied historically in varying degrees in Muslim countries/communities to prevent non
Islamic practices, only in the late 20th century was a number of Islamic banks formed to apply these
principles to private or semi-private commercial institutions within the Muslim community. Islamic
banking commenced operations in Bangladesh in 1983. There are 8 Islami Shariah based banks in
Bangladesh and they execute banking activities according to Islami Shariah based principles i.e.
Profit-Loss Sharing (PLS) mode.
1.2. Literature Review
As the performance of the Investment Department is closely associated with the performance of the
Bank, investment and portfolio analysis has grown during the last decade. With respect to the
investment sector of Bangladesh, foreign and national experts undertook some studies. Some of the
notable ones are; Md. Ataur Rahman(2008), Md Fayshal Hossan Miazy (2013), Mariam Jahan
Nipun (2014), Hemanta Chandra (2009), Akash Jeevan (2016), Ranjana Sing (2013)
Md. Ataur Rahman(2008) , The Al-Arafah Islami bank has an Asset Liability Committee (ALCO)
that reviews liquidity requirement of the bank, the maturity of assets and liabilities, deposit and
lending pricing strategy and the liquidity contingency plan. The prime objective of the ALCO is to
monitor and avert significant volatility in net profit income, investment value and exchange
earnings. AIBL strives hard to optimize profit through conduction of transparent business operations
within the legal and social framework with malice to none and justice for all.
Md Fayshal Hossan Miazy (2013), his report contains handy information about investment of profit
base bank, to show that he used the investment and comprehensive performance analysis of
commercial bank; Al- Arafah Islami Bank Ltd.
Mariam Jahan Nipun (2014), FSIBL deposit on Mudaraba (profit sharing) and Al-Wadiah (current
account) Basis on Islamic Shariah. The depositor of business partners of its and they share profit
and loss of the business. For the better use of the depositor’s fund, FSIBLinvest its funds as per
different modes of investment or financing by Islamic Shariah. Most of the investment of FSIBL on
the by Bai-mode (buying& selling) and HPSM. The other ideal mode of FSIBL is Musharaka
(partnership).
INTRODUCTION

14
1.4 Statement of the Issue
This study titles “A Study on Investment Management, Evidence from of Al-Arafah Islami
Bank Limited”. It focuses on the current investment management system, investment
evaluation method, strength and weaknesses of current investment strategy and future
initiatives taken to improve the condition on investment management of Al-Arafah Islami
Bank Limited.
1.5 Objectives of the Study
The main objective of the study is-
To provide a critical study about the investment management system
of Al-Arafah Islami Bank Limited
INTRODUCTION
1.3 Origin of the Report
To complete BBA Program in Begum Rokeya University, Rangpur, a student requires
completing an Internship Program of three months’ attachment with an organization followed
by writing a report at the final after the 8th
semester of BBA program. This report is the
fulfillment of the requirement for the evaluation process of the internship program. This report
titled “A Study on Investment
Management, Evidence from of Al-Arafah Islami Bank Limited” is conducted on the basis of
me practical experience of three months long internship at Rangpur Branch 15, Central Road,
Payrachattar, Rangpur of Al-Arafah Islami Bank Limited. After consultation with my
department supervisor Mr. Ashanuzzaman, Lecturer, Department of Accounting and
Information Systems, Begum Rokeya University, Rangpur and under the direction of my
organizational supervisor Mr. Md. Kamrul Ahsan, FAVP & Branch Manager, Rangpur
Branch15, Central Road, Payrachattar, Rangpur, Al-Arafah Islami Bank Limited, I have
prepared this internship report with the mentioned topic.

15
1.7 Methodology of the Study
1.7.1 Type of Research
INTRODUCTION
The study is exploratory in nature. It gives an insight and comprehensiveness of the investment
management and also the attributes that affects the profitability of the bank. To collect and
analyze the information for this report, I have used both qualitative and quantitative research
methods.
This internship report is an important partial requirement of four years BBA graduation
program. This is because knowledge and learning become perfect when it is associated with
theory and practice. By this internship program student can establish contacts and networking.
Contacts may help to get a job in practical life. That is, student can train and prepare themselves
for the job market. A developing country like Bangladesh has an overwhelming number of
unemployed educated graduates. As they have no internship experience they have not been able
to gain normal professional experience of establish networking system, which is important in
getting a job. Therefore, it is obvious that the significance of internship is clearly justified as the
crucial requirement of four years BBA graduation.
1.6 Significance of the Study
To know the present status of total investment of AIBL.
To focus on investment management practice in of AIBL.
To identify the problems related to investment of AIBL.
To provide some policy guidelines for improving investment management situation of AIBL.
Other secondary objectives are-

16
include written material such as; books, journal articles, newspapers as well as administrative
and public records. These types of data are collected through following ways:
Annual report of AIBL
File study
Bangladesh Bureau of Statistics report
Brochure of AIBL
Website of AIBL
Bank rate sheet
Different books and newspapers
1.8 Limitations of the Study
On the way of preparing this report, the researcher has faced following problems that may
be termed as the limitations of the study:
Bank’s policy of not disclosing some sensitive data and information for obvious reason
posed an obstacle to prepare more informative report.
Personal limitations like inability to understand some official terms, office decorum etc.
created a few problems.
The duration of completing internship program and preparing internship report was
inadequate. It was very difficult for me to understand an organization ‘s environment and
collect information in so short a time.
In previous year they used to disclose the category wise investment amount but from
running year they don’t do it, it is his main hindrance to be a report with specific amount.
INTRODUCTION
Secondary Sources of Data: The secondary data is one which has already been collected by a
source other than present investigator. Secondary data include both raw data and published
summaries. Documentary secondary data
Different data and information are required to meet the goal of this report. Those data and
information was collected from various secondary which is showed below:
1.7.2 Data Collection Procedure

17
Chapter 2
COMPANY OVERVIEW
Topics
2.1 Background of AIBL
2.2 Vision
2.3 Mission
2.4 Commitments
2.5 Special Features of the Bank
2.6 Corporate Information
2.7 Corporate Culture
2.8 AIBL at a Glance
2.9 Financial Highlights of Last 5 Years
2.10 Performance at a Glance
2.11 Credit Rating
2.12 Products and Services Provided

18
2.1 Background of Al‐Arafah Islami Bank Limited
With the objective of achieving success here & hereafter by pursuing the way directed by Allah
and the path shown by His Rasul (SM), Al Arafah Islami Bank Ltd was established(registered)
as a private limited company on 18 June 1995. The inaugural ceremony took place on 27
September 1995. The authorized capital of the Bank is Tk.5000.00 million and the paid up
capital is Tk. 4677.28 million as on 31.12.2010. Renowned Islamic Scholars and pious
businessmen of the country are the sponsors of the Bank. 100% of paid up capital is being
owned by indigenous shareholders.
The equity of the bank stood at Tk. 9647.45 million as on 31 December 2010, the manpower
was 1711 and the number of shareholders was 49,386. It has achieved a continuous profit and
declared a good dividend over the years. High quality customer service through the integration
of modern technology and new products is the tool of the bank to achieve success. The bank
has a diverse array of carefully tailored products and services to satisfy customer needs.
The Bank is committed to contribute significantly to the national economy. It has made a
positive contribution towards the socio economic development of the country with 78 branches
of which 21 is AD throughout the country.
2.2 Vision
To be a pioneer in Islami Banking in Bangladesh and contribute significantly to the
growth of the national economy
Achieving the satisfaction of Almighty Allah both here & hereafter
Proliferation of Sariah 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
COMPANY
OVERVIEW2.3 Mission

19
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
2.4 Commitments
AIBL is a customer focused modern Islamic Bank, sound and steady growth in both
mobilizing deposit and making quality investment to keep their position as a leading Islami
bank in Bangladesh.
To deliver financial services to retail, small and medium scale enterprises, as well as
corporate clients through branches across the country.
AIBL’s business initiatives are designed to match the changing trade & industrial needs of
the clients.
2.5 Special Features of the Bank
As an Islami bank, AIBL is singular in every positive aspect. They provide a bunch of state-
of-art banking services within the wide bracket of Sariah. AIBL is unique with their products,
strict with their principle and uncompromising with their honesty. Some of the special features
that make them notable in Islami banking sector are as follows:
All activities of AIBL are conducted under a profit/loss based system according to
Islamic Shariah to get the nation rid of Usury.
Its investment policies under different modes are fully Shariah compliant and well
monitored by the board of Shariah Council.
During the year 2007, 70% of the investment income has been distributed among
the Mudaraba depositors.
In 2008, AIBL has included online banking in its wide range of services.
Bangladeshi software has been introduced in this feature to promote the local
developers.
AIBL regularly arranges its AGMs (Annual General Meeting). Whenever needed
EGMs (Extraordinary General Meeting) are also arranged.
AIBL regularly pays dividend to their valued shareholders. For the year of 2008,
AIBL declared 30% bonus dividend to their shareholders.
COMPANY
OVERVIEW

20
They believe in providing dedicated services to the clients imbued with Islamic spirit of
brotherhood, peace and fraternity.
The bank is committed towards establishing a welfare-oriented banking system to meet
the needs of low income and underprivileged class of people.
The Bank upholds the Islamic values of establishment of a justified economic system
through social emancipation and equitable distribution of wealth.
Following the Islamic traditions, it is assisting in the economic progress of the socially
deprived people; in the creation of employment opportunities and in promotion of rural
areas to ensure a balance development of the country.
The Bank believes in social and philanthropic activities and has established AIBL English
Medium Madrasha and AIBL Library.
2.6 Corporate Information
Managing Director:
Date of Registration:
1st Branch:
Opening Ceremony:
Authorized Capital:
Paid-up Capital:
Local Partnership of Capital:
Equity:
Number of Branches:
Deposit:
Investment:
Number of Employees:
Number of Shareholders:
Md. Habibur Rahman
18 June 1995
Motijheel Branch, Dhaka
27 September, 1995
15,000.00 Million
9,943.06 Million
100%
21,337.48 Million
140
199,703.92 Million
196,519.38 Million
3,070
36,695
COMPANY
OVERVIEW
2.7 Corporate Culture
Al-Arafah Islami bank is one of the most disciplined Banks with a distinctive corporate culture
based on Islami Shariah. Here they believe in shared meaning, shared understanding and shared
sense making. The people in this bank can see and understand events, activities, objects and
situation in a distinctive way. They mould their manners and etiquette, character individually
to suit the purpose of the Bank and the needs of the

21
customers who are of paramount importance to the bank. The people in the Bank see
themselves as a tight knit team/family that believes in working together for growth. The
corporate culture has developed has not been imposed; it has rather been achieved through their
Corporate conduct.
2.8 AIBL at a Glance
Islam provides us a complete lifestyle. Main objective of Islamic 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-Qur'an and lifestyle of Hazrat Muhammad (Sm.) for us supreme success.
Islami Banking System is becoming more and more attractive day by day to peoples
irrespective of nations, religious, colors and species. More than 300 Banks & financial
institutions are serving Islami banking throughout the world. At present in our country 8 full-
fledged Islamic Banks are working successfully. And other traditional
banks have Islami Banking Wings conducting Shariah based banking activities. Recent
Development of Bangladesh Government Islamic Investment Bond (BGIIB) is the milestone
for shariah based banking practices in Bangladesh. 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-Qur’an and Sunnah.
A group of established, dedicated and pious personalities of Bangladesh are the architects and
directors of the Bank. Among them a noted Islamic scholar, economist, writer and ex-
bureaucrat of Bangladesh government Mr. A. Z. M Shamsul Alam is the founder chairman
of the bank. His progressive leadership and continuous inspiration provided a boost for the
bank in getting a foothold in the financial market of Bangladesh. A group of 20 dedicated and
noted Islamic personalities of Bangladesh are the member of Board of Directors of the bank.
They are also noted for their business acumen. Its authorized capital is Taka 15,000.00
Million and the paid-up capital is Taka 8,343.25 Million. The equity of the bank has stood at
Tk. 16,091.17 million as on 31 December 2013, the manpower was 2,387 and the number of
shareholders was 58,466. It has achieved a continuous profit and declared a good dividend
over the years. High quality customer service through the integration of modern technology
and new products is the tool of the bank to achieve success. The bank has a diverse array of
carefully tailored products and services to satisfy customer needs. The Bank is committed to
contribute significantly to the national economy. It has made a positive contribution towards
the socio economic development of the country with 110 branches of which 22 is AD
throughout the country.
COMPANY
OVERVIEW
Wisdom of the directors, Islamic bankers and the wish of Almighty Allah make Al-
Arafah Islami Bank Ltd. most modern and a leading bank in Bangladesh.

22
2.9 Financial Highlights of Last 5 Years
(In million taka)
Particular
Authorized Capital
Paid up Capital
Reserve Funds & Other
Reserve
Shareholders' Equity (Capital &
Reserve)
Deposits
Investment
Total Income
Total Expenditure
Profit Before Tax & Provision
Profit Before Tax
Profit After Tax
Fixed Assets
Total Assets (Excluding off-
balance sheet items)
Import Business
Export Business
Core Capital (Tier-l)
Supplementary Capital (Tier-ll)
Tier-l Capital Ratio
Tier-ll Capital Ratio
Total Capital
Total Capital Ratio
% of NPIs to Total investment
Number of Shares Outstanding
Earnings per Share (Taka)
Book Value per Share (Taka)
2009
5,000.00
1,798.95
1,223.18
3,564.73
38,355.50
36,134.08
5,305.64
3,575.81
1,729.83
1,589.24
858.99
466.30
48,515.79
34,074.80
23,546.10
3,498.07
567.89
9.68
1.57
4,065.96
11.25
1.68
179,895,360
2010
5,000.00
4,677.28
1,779.08
9,790.36
53,882.96
53,582.96
7,685.57
4,462.30
3,223.27
2,852.47
1,959.04
655.39
74,005.01
55,934.10
32,042.40
9,582.85
929.96
13.21
1.28
10,512.81
14.49
1.14
467,727,936
2011
10,000.00
5,893.37
2,437.43
11,989.11
82,186.98
77,714.95
11,332.59
7,005.81
4,326.78
3,946.62
2,198.75
968.13
106,768.18
76,112.10
52,202.10
11,924.50
1,123.40
12.31
1.16
13,047.90
13.47
0.95
589,337,199
2012
10,000.00
7,130.98
4,079.63
14,050.69
118,683.39
106,650.42
16,692.58
11,937.04
4,755.54
3,944.10
1,945.41
2,394.62
149,320.36
71,931.70
58,476.60
13,073.14
1,731.59
10.38
1.37
14,804.73
11.75
1.63
713,098,010
2013
15,000.00
8,343.25
4,827.20
16,091.17
140,980.55
125,715.39
19,723.41
14,774.85
4,948.56
4,360.41
2,276.68
2,517.22
173,161.63
85,915.00
68,980.30
15,113.62
1,511.75
1.33
16,625.37
14.66
2.77
834,324,671
2.00
19.82
4.14
16.47
2.79
16.69
2.03
19.70
2.46
19.29
COMPANY
OVERVIEW
13.33

23
2.10 Performance at a Glance
Figure 2A: Performance at a Glance (In million taka)
2.11 Credit Rating
Credit Rating Agency of Bangladesh (CRAB) Limited has adjudged AA 3 (pronounced Double
A Three) rating in the Long Term and ST-2 rating in the Short Term for Al- Arafah Islami Bank
Limited.
COMPANY
OVERVIEW
credit rating Credit Rating Information and Services Limited (CRISL) has adjudged rating for
Al-Arafah Islami Bank Limited as follows:
Long Term: AA 2 (pronounced Double a Two)
Short Term: ST-2 Based on : Audited Financial Statement 2015
Date of Rating: 30 June 2016 Validity: 30 June 2017 Outlook: Stable30 June, 2013

24
COMPANY
OVERVIEW
CSR activities
CSR is an integral part of our corporate culture and ethics. We respond positively in every sphere of
social activities. We are delivering innovative solution to our valued customer and in the same
manner we are also helping different areas of social activity through our CSR activities. During the
year 2016, the bank has prolonged its hands towards the poor people in various ways.
Value added is a measure of wealth created by the Bank through various business activities. The
statement of value added shows the total wealth created and how it was distributed among
stakeholders, including the Government, employees and shareholders.
Source: AIBL Annual Report page 16
Source: AIBL Annual Report

25
2.12 Products and Services Provided by AIBL
AIBL Products and Services
Deposit Investment Foreign
Trade
MSME ATM
Services
Locker
Services
Figure 2B: Products and Services Provided by AIBL
Al Wadiah Current Deposit (CD)
Mudaraba Short Notice Deposit (SND)
Mudaraba Savings Deposit (MSD)
Mudaraba Term Deposit (MTDR)
Monthly Profit Based Term Deposit
(PTD)
Monthly Installment Based Term
Deposit (ITD)
Al-Arafah Monthly Hajj Deposit
(MHD)
Al-Arafah Termed Hajj Deposit (THD)
Monthly Installment Based Marriage
Savings Investment Scheme (MIS)
Al-Arafah Savings Bond (ASB)
Foreign Currency Deposit (FCD)
Pension Deposit Scheme (PDS)
Cash Waqf Deposit Scheme (CWD)
Mudaraba Lakhpoti Deposit Scheme
(LDS)
Mudaraba Millionaire Deposit Scheme
(MDS)
Mudaraba (Special) Pension Deposit
Scheme (MSPDS)
Mudaraba Kotipoti Deposit Scheme
(MKDS)
Mudaraba Double Benefit Deposit
Scheme (MDBDS)
Investment in Agricultural
Sector
Investment in Industrial
Sector
Investment in Business
Sector
Investment in Foreign Trade
Investment in Construction
and Housing
Investment in Transportation
Sector
Hire Purchase (HPSM)
Investment Schemes in
Masque and Madrasa
(MMIS)
Village and Small
Investment Schemes (GSIS)
Small Enterprise Investment
Schemes (SEIS)
Consumer Investment
Schemes (CIS)
Import
Export
Remittance
COMPANY
OVERVIEW

26
Chapter 3
THEORETICAL REVIEW
Topics
3.1 Islamic Banking
3.2 Principles of Islamic Banking
3.3 Islami Banking in Bangladesh
3.4 Sharia Investments
3.5 Type of Funds
3.6 Investment Restrictions
3.7 Investment Management

27
3.1 Islamic Banking
Islamic banking is banking or banking activity that is consistent with the principles of sharia
and its practical application through the development of Islamic economics. As such, a more
correct term for 'Islamic banking' is 'Sharia compliant finance'.
Sharia prohibits acceptance of specific interest or fees for loans of money (known as riba, or
usury), whether the payment is fixed or floating. Investment in businesses that provide goods or
services considered contrary to Islamic principles (e.g. pork or alcohol) is also haraam ("sinful
and prohibited"). Although these prohibitions have been applied historically in varying degrees
in Muslim countries/communities to prevent non-Islamic practices, only in the late 20th century
were a number of Islamic banks formed to apply these principles to private or semi-private
commercial institutions within the Muslim community.
3.2 Principles of Islamic Banking
Islamic banking has the same purpose as conventional banking: to make money for the banking
institute by lending out capital. But that is not the sole purpose either. Adherence to Islamic law
and ensuring fair play is also at the core of Islamic banking. Because Islam forbids simply
lending out money at interest, Islamic rules on transactions (known as Fiqh al-Muamalat) have
been created to prevent it. The basic principle of Islamic banking is based on risk-sharing which
is a component of trade rather than risk-transfer which is seen in conventional banking. Islamic
banking introduces concepts such as profit sharing (Mudharabah), safekeeping (Wadiah), joint
venture (Musharakah), cost plus (Murabahah) and leasing (Ijara).
In an Islamic mortgage transaction, instead of lending the buyer money to purchase the item, a
bank might buy the item itself from the seller, and re-sell it to the buyer at a profit, while
allowing the buyer to pay the bank in installments. However, the bank's profit cannot be made
explicit and therefore there are no additional penalties for late payment. In order to protect itself
against default, the bank asks for strict collateral. The goods or land is registered to the name
of the buyer from the start of the transaction. This arrangement is called Murabahah. Another
approach is EIjara wa EIqtina, which is similar to real estate leasing. Islamic banks handle loans
for vehicles in a similar way (selling the vehicle at a higher-than-market price to the debtor and
then retaining ownership of the vehicle until the loan is paid).
THEORETICAL
REVIEW

28
An innovative approach applied by some banks for home loans, called Musharaka al-
Mutanaqisa, allows for a floating rate in the form of rental. The bank and borrower form a
partnership entity, both providing capital at an agreed percentage to purchase the property. The
partnership entity then rents out the property to the borrower and charges rent. The bank and
the borrower will then share the proceeds from this rent based on the current equity shares of
the partnership. At the same time, the borrower in the partnership entity also buys the bank's
share of the property at agreed installments until the full equity is transferred to the borrower
and the partnership is ended. If default occurs, both the bank and the borrower receive a
proportion of the proceeds from the sale of the property
based on each party's current equity. This method allows for floating rates according to the
current market rate such as the BLR (base lending rate), especially in a dual-banking system
like in Malaysia.
There are several other approaches used in business transactions. Islamic banks lend them
money to companies by issuing floating rate interest loans. The floating rate of interest is pegged
to the company's individual rate of return. Thus the bank's profit on the loan is equal to a certain
percentage of the company's profits. Once the principal amount of the loan is repaid, the profit-
sharing arrangement is concluded. This practice is called Musharaka. Further, Mudaraba is
venture capital funding of an entrepreneur whoprovides labor while financing is provided by
the bank so that both profit and risk are
shared. Such participatory arrangements between capital and labor reflect the Islamic view that
the borrower must not bear all the risk/cost of a failure, resulting in a balanced distribution of
income and not allowing the lender to monopolize the economy.
Islamic banking is restricted to Islamically acceptable transactions, which exclude those
involving alcohol, pork, gambling, etc. The aim of this is to engage in only ethical investing, and
moral purchasing. The Islamic Banking and Finance Database provides more information on the
subject.
In theory, Islamic banking is an example of full-reserve banking, with banks achieving a 100%
reserve ratio. However, in practice, this is not the case, and no examples of 100 per cent reserve
banking is known to exist. Islamic banks have micro-lending institutions founded by Muslims,
notably Grameen Bank, use conventional lending practices and are popular in some nations,
especially Bangladesh, but some do not consider them true Islamic banking. However,
Muhammad Yunus, the founder of Grameen Bank and microfinance banking, and other
supporters of microfinance, argue that the lack of
THEORETICAL
REVIEW

29
collateral and lack of excessive interest in micro-lending is consistent with the Islamic
prohibition of usury (riba).
3.3 Islami Banking in Bangladesh
Islami Banking System is becoming more and more attractive day by day to peoples
irrespective of nations, religious, colors and species. More than 300 Banks & financial
institutions are serving Islami banking throughout the world. At present, eight full- fledged
private Islamic commercial banks and 17 conventional banks through Islamic windows and
branches are operating in Bangladesh. About half a dozen conventional banks have applied to
the Central Bank for being converted into Islamic ones. Currently, Islamic banks hold 24
percent of total banking deposit having around 10 percent of the
total bank branches. The combined share of Islamic banks (excluding Islamic banking
branches/windows of conventional banks) is around 17 percent in assets, 20 percent in
investments (loans), 14 percent in equity and 17 percent in liabilities (BB Financial Stability
Report, July 2013).
3.3.1 Islami Interbank Fund Market (IIFM)
In order to mitigate liquidity crisis of Sariah based banks and financial institutions and for
their better management, Bangladesh Bank introduced Islami Interbank Fund Market in 2012.
Under this arrangement, an interested Islamic financial institution can place them surplus fund
overnight at Bangladesh Bank. Islamic banks and banks having Islamic banking branches and
windows may borrow from this fund overnight. IIFM is expected to play a critical role in the
development of Islamic Money Market in Bangladesh.
3.3.2 Bangladesh Government Islamic Investment Bond (BGIIB)
The Ministry of Finance, Government of Bangladesh introduced the BGIIB in 2004. The
instrument has been playing an important role in developing Islamic Money Market. The
unit price of the Bond is Tk. 1 (one) lac. One can purchase the Bond for Tk. 1 (one) lac or
multiple thereof having tenure of 6 (six) months, 1 (one) year or 2 (two) years. The Bond
is treated as a component of Statutory Liquidity Ratio (SLR).
THEORETICAL
REVIEW

30
3.3.3 Islamic Banks Consultative Forum (IBCF)
IBCF, with Islamic Banks and Conventional Banks having Islamic Banking Branches as
members, was established in 1995 for effective interaction, cooperation, promotion and
furthering of the cause of Islamic banking in Bangladesh. Seven full-fledged Islamic Banks
and six Banks having Islamic Banking Branches are the members of the IBCF.
3.3.4 Central Sharia Board for Islamic Banks of Bangladesh (CSBIBB)
CSBIBB was established in 2001 to offer views and assistance to member banks in matters
related to harmonization of Islamic banking policies and practices. It also promotes knowledge
on Islamic banking by organizing seminars and conducting training and research on Islamic
Sharia. Seven full-fledged Islamic Banks and ten Conventional Banks having Islamic banking
branches are the members of CSBIBB.
THEORETICAL
REVIEW
3.4 Sharia Investments
Sharia is the Muslim or Islamic law which regulates many aspects of a Muslim’s life including
the type of investments allowed. For instance, interests are considered usury according to the
Riba rule therefore bonds are prohibited to investors following the Sharia law. A Sariah
compliant fund is an investment vehicle fund structured in accordance to Sariah rules. Sariah
funds can be managed as mutual funds, exchange-traded funds or hedge funds. They are in
essence common funds with an extra layer of ethical rules integrated in the investment policies
of the fund not dissimilar to socially responsible investing. While the funds are required to be
fully compliant with Sariah rule, the companies structuring, managing and promoting the funds
do not have to be necessarily Sariah compliant.

31
THEORETICAL
REVIEW
I.
Istina’a- It’s a contract where the buyer of an item funds upfront the production of
the item. A detailed specification of the item has to be agreed before production
starts and the cost of production can be paid partially according to manufacturing
stages.
Bay al-Salam- It’s similar to a forward contract where the buyer pays in advance
for the delivery of raw materials or fungible goods at a given date. The spot price
II.
of the item includes the profit of the person who has taken the task of purchasing
good and, of course, the cost of the product.
3.5 Type of Funds
3.5.1 Commodities
Commodities funds generate profits by buying and reselling Halal commodities. Because
of the restrictions on the use of derivatives, commodities fund make use of two types of
Sariah approved contracts
3.5.2 Equity Funds
Funds that invest in common shares in companies engaged in halal business. Companies
are also screened in order to check for Sariah compliant accounting principles. Because
of the limited pool of companies, the funds can invest into, equity funds can have higher
volatility compared to similar funds in the same space.
3.5.3 Murabaha
They are similar to development funds, also referred to as ‘cost-plus’ financing, where a
fund will buy goods and resell them to a third party at a given price. The price is made of
the cost of goods plus a profit margin. Cost and margin are agreed in advance.
3.5.4 Ijara
Funds that acquire and keep ownership of an asset (real estate, machinery, vehicles or
equipment) and then makes profits by leasing it out in return of a rental payment. The fund
is responsible for the management of the asset and will normally receive a management fee.
The leased item must be used in a Halal manner.

32
3.6 Investment Restrictions
THEORETICAL
REVIEW
3.6.1 Riba
The payment or receipt of interests are considered usury and unjust. Debt is also disapproved
making investments in highly leveraged companies unacceptable. Funds cannot pay fixed or
guaranteed return on capital. Instead of borrowing and lending, Islamic finance relies on
sharing the ownership of the assets and therefore risk and profit/loss.
3.6.2 Haram
Companies involved in prohibited business activities cannot be part of a Shariah fund
strategy. Prohibited business activities can relate to food (production and sales of alcoholic
beverages including pubs and restaurants, pork products, tobacco), gambling (casinos, on-
line gambling, betting, lottery schemes), adult oriented (video, magazines, on-line material,
strip clubs), dubious, immoral and illicit trades (prostitution, drugs).
3.6.3 Maisir
Islam forbids gambling in any form. Consequentially, derivatives, forwards, options and
futures are prohibited. Other forbidden practices include short selling, Lottery, margin, and
scalping trading.
3.6.4 Day trading
Day trading is considered akin to maisir. Marketable securities generally have a multi- day
settlement period, during which time the underlying instruments, while cleared, are not
formally registered in the name of the purchaser. As day traders do not wait for settlement to
complete, they are using a type of credit cushion provided by their broker. Some day traders
also rely on a margin account to finance their trading activities.
3.7 Investment Management
Investment management is a dynamic field where a certain standard of long-range planning is
needed to allocate the fund in diverse field and to minimize the risk and maximizing the return
on the invested fund. Continuous supervision, monitoring and follow-up is highly required for
ensuring the timely repayment and minimizing the default. Actually the Investment portfolio
is not only constituted the bank’s asset structure but also a vital factor of the bank’s success.
The overall success in Investment management depends on the banks investment policy,
portfolio of investment, monitoring, supervision and follow-up of the loan and advance.
Therefore, while analyzing the Investment Management of AIBL, it is required to analyze its
investment Policy, Investment procedure and quality of Investment portfolio.

33
Chapter 4
INVESTMENT
MANAGEMENT
Topics
4.1 Investment of AIBL
4.2 Investment Growth
4.3 Sector Wise Investment 2016
4.4 Classified Investment Ratio
4.5 Micro, Small & Medium
Enterprises (MSME) Investment
4.6 Agricultural Investment
4.7 Investment for Growing Spices at
a Lowest Profit Rate (4%)
4.8 Al-Arafah Khamer bari Investment
Scheme
4.9 Investment on Women
Entrepreneurs
4.10 Grameen Small Investment
Scheme (GSIS)
4.11 Al-Arafah Solar Energy
Investment Scheme
4.12 Modes of Investment of AIBL
4.13 Investment processing of AIBL

34
4.1 Investment of AIBL
Total investments of the bank stood at Tk. 196,519.38 million recording 102.35% achievement
of Target Tk.192,000.00 million as on 31st December 2016 as against Tk.162,503.14 million on
the same day of previous year 2015. The investments increased by Tk. 34,016.24 million
recording 20.93% growth in 2016. The target for investment for the year 2017 has been fixed at
Tk. 272,250.00 million with anticipated growth of 38.54%. The investment portfolio of the bank
is well diversified and covers a
broad spectrum of businesses and industries including readymade garments, textile, edible oil,
ship scraping, steel & engineering, chemicals, pharmaceuticals, cement, telecommunication,
construction, health care, real estate, education, transport and investment under consumer
schemes. The bank has geared up efforts to improve the recovery rate of disbursed investment
and also taken adequate measures for converting the classified investment into performing
assets. As a result, classified investment of the bank could be kept at a low level far below the
national average. The bank gives top-most priority to the creation of quality assets and does
appropriate risk grading while approving commercial, trade and project investment to different
clients.
4.2 Investment Growth
INVESTMENT
MANAGEMENT
Figure 4A: Investment Growth (In million Taka)

35
Figure 5A shows the investment growth of AIBL from 2009 to 2013. We can see that the
investment of AIBL is increasing every year as we saw the same about deposit in chapter 4
(Figure 4A). In 2013 the amount of investment was is 125,715.39 million taka which was much
higher than 2009’s 36,134.08 million taka.
4.3 Sector Wise Investment 2016
Sector wise invest amounts of AIBL for the year 2016 is given below:
Sectors Taka in Million
Agriculture, Fishing and Forestry 2,298.10
Industry 97,344.00
Construction 9,052.00
Water Works & Sanitary Service 489.00
Transport & Communication 7,692.00
Storage 1,080.00
Trade Finance 53,891.00
Miscellaneous 33,752.08
Total(Including Profit Receivable) 205,599.98
Less Unearned Profit On Investment 9,080.60
Total 196,519.38
Figure 4B: Source: AIBL Annual Report 2016, page 36
INVESTMENT
MANAGEMENT

36
16.42 1.12
47.35
4.4
0.24
3.74
0.53
26.21
Sector Wise Investment
Miscellanious Agriculture , Fishing & Forestry
Industry Construction
Transport & Communication Transport & Communication
Storage Trade Finance
Figure 4B shows sector wise investment of AIBL for the year 2016. We can see that highest
amount of investment was made on industry sector as AIBL always encourages industry basis
entrepreneurs to do business with AIBL. 47.35% of the investment was made to this sector.
Second highest investment was made to trade finance. About 26.21% of the total amount was
invested to trade financing sector.
4.4 Classified Investment Ratio
Any bank investment that is in danger of default is classified investment. Classified investments
have unpaid interest and principal outstanding, and it is unclear whether the bank will be able
to recoup the investment proceeds from the borrower. Banks usually categorize such
investments as adversely classified assets on their books.
In the year 2013 bank's classified investment ratio of AIBL increased to 2.77% which was to
1.63% in the previous year. In the year 2014 AIBL’s target is below 2.77%.
INVESTMENT
MANAGEMENT
Figure 4B: Sector Wise Investment (%)

37
Figure 4C: Classified Investment Ratio (%)
Figure 5C shows that Classified Investment Ratio of 2013 was much higher than previous
years. That is not a good sign for the profitability of the bank. The bank has already taken
necessary actions to put the percentage below 2.77% in 2014. In the last two years (2015 &
2016) this amount becomes Zero (0).
4.5 Micro, Small & Medium Enterprises (MSME) Investment
Micro Small & Medium Enterprise (MSME) plays a pivotal role in the economic growth and
development of a country. MSME works as the platform for job creation, income generation,
and development of forward and backward industrial linkages. MSMEs occupied a unique
position in the economy of Bangladesh. Micro, Small and medium enterprises (MSMEs) make
up the largest portion of the employment base in many developing countries and, indeed, are
often the foundation of the local private sector. Now the MSMEs are not only concentrated to
low-tech, traditional, and agro-based
economic activities; these are spread over other non-traditional manufacturing and service
sector as well. To achieve high and sustained economic growth, a triggering force is mandatory
to exit from endemic poverty and socio-economic deprivation.
MSMEs constitute the dominant source of industrial employment in Bangladesh (80%), and
about 90% of the industrial units fall into this category. The actual performance of MSMEs,
however, varies depending on the relative economic efficiency, the macroeconomic policy
environment and the specific promotion policies pursued for them
benefit.
INVESTMENT
MANAGEMENT
0%
20%
40%
60%
80%
100%
2013 2014 2015 2016
2.77 2
Classified Investment Ratio
Series 1 Column1 Column2

38
To ensure proper manifestation and rapid advancement of Micro, Small & Medium Enterprises,
a number of schemes are running in this bank. In the light of a unique definition of Bangladesh
Bank, the bank is giving a priority over financing to three categories of enterprises viz. Industry,
Trade & Services. Based on December 2013, total MSME investment portfolio is 68,913.60
million, which is 52.96% of Total Investment portfolio. Among them 28949.30 million is under
Small Enterprises and 39964.30 million is under Medium Enterprises. Participation of Small
Enterprises is 42% of Total MSME Investment. The bank prior Area Approach Method when
MSME financing.
To speed up MSME investment flow and to include in people who are beyond the range of
banking facilities, schemes named 'Small Enterprise Investment Scheme (SEIS)' and Micro
Enterprise Investment Scheme (MEIS) are running in the bank. With these schemes, operation
of collateral security free SEIS & MEIS investment is continuing in all 110 branches. Skilled
and experienced staffs are recruited in different branches to ensure proper expansion of collateral
security free SEIS & MEIS investment.
4.6 Agricultural Investment
To encourage the marginal farmers of Bangladesh, bank is paying massive attention to invest on
agricultural sectors. The main items of agricultural sectors are- crops, fisheries, warehouse,
poverty alleviation, irrigation, livestock development etc. At the end of December 2013, total
agricultural investment portfolio is Tk. 1650.65 million of the fiscal year 2013-2014. With
collateral and without collateral both are practiced in agricultural investment.
4.7 Investment for Growing Spices at a Lowest Profit Rate(4%)
As per instruction of Bangladesh Bank, and to increase the production of different types
of spices like Pulse, Oil-seed, Spice and Maize, AIBL started investment at a lowest rate
of profit (only 4%) to the marginal farmers.
4.8 Al‐Arafah Khamerbari Investment Scheme
To make a priority to invest in the crop sector of Bangladesh, AIBL has launched a new product
named "Al-Arafah Khamerbari Investment Scheme (Khamerbari)". With this product, the bank
work for a farmer's community around the Branch area. Field officials motivate farmers to grow
the potential corps based on their previous farming experience. This scheme has an innovative
action to develop the crop sector of Bangladesh. AIBL has 34.28 Million of investment
portfolio among 2574 farmers under this scheme so far.

39
4.9 Investment on Women Entrepreneurs
About 50% of the populations of Bangladesh are women. Women participation in the
mainstream of economic activities especially in the productive sectors is crucial for attaining
sustainable economic growth, poverty reduction and women's empowerment. But women
participation in economic sector is inadequate and the number of women entrepreneurs is very
low compared to that of their male counterparts. In fact, there exist many obstacles in women
participation in the mainstream of economic activity although the degree of integrity,
devotion, creativity and expertise of women make us surprised.
Especially women participation in microcredit programs and readymade garments industry is
contributing significantly to the country's industrialization. Similarly, participation of women
entrepreneurs in SME sector is vital for the flourishing of Bangladesh economy and enhancing
women empowerment.
Al-Arafah Islami Bank Ltd. is working with women entrepreneurs to make them capable of
earning by connecting with country's economic activities. AIBL gives priority to women
entrepreneurs to invest on various productive sectors. By the side of collateral secured
investment, collateral security free investment is also considered in the question of women
development.
INVESTMENT
MANAGEMENT
4.10 Grameen Small Investment Scheme(GSIS)
Bangladesh has achieved the richest experience on poverty alleviation through rapid
expansion of microfinance activities in the last one and a half decade. This experience
has made important contributions to the emergence of this concept globally. Grameen
Small Investment Scheme (GSIS) is very much related to Cottage Industry/Enterprise
defined by Bangladesh Bank.

40
Definition of Cottage Industry/Enterprise
As per Bangladesh Bank SMESPD Instruction Circular No. 1, Dated: 19 June, 2011,
Cottage Industry/Enterprise means as follows:
Source: Bangladesh Bank Website (www.bangladesh-bank.org)
On the focus of socio-economic development of rural poor, AIBL’s 'Grameen Small
Investment Scheme (GSIS)' is running from the year 2001. At present, 66 rural
branches are included for this scheme and the number of clients is increasing rapidly.
Functioning on the basis of Group and Samity, this scheme helps farmers, labors,
fisher men, micro-businessmen and small entrepreneurs. Another important objective
of this scheme is to give priority to make economically self-dependent of rural women
entrepreneur. To get investment under this scheme, no collateral security is required.
Repayment system is weekly installment basis. Basically, this scheme is one kind of
supervised investment system and skilled personnel are working indifferent branches
to ensure continuous supervision.
4.11 Al‐Arafah Solar Energy Investment Scheme
A Pioneer investment scheme named 'Al-Arafah Solar Energy Investment Scheme' is
launched in order to face the present electricity crisis and to spread the benefits of
renewable energy among the rural people. This program treats as an innovative step
on the history of Private Banking Sector in Bangladesh. Actually, solar energy is
renewable, efficient, and non-polluting energy source. Homeowners, who install solar
systems, are helping to reduce the emission of greenhouse gases which have a direct
relation to global warming. This scheme also has unveiled the wide field of Green
Banking concept, the burning issue. 'Solar Energy Investment Scheme' is running under
the control of SME & Promotional
Programs Division. Skilled Electric Engineers & Solar Technicians are recruited in order
to ensure the perfect technical support. AIBL have already established 2,50,740 Wa
Peak of electricity among 5,011 families through 21 Rural Branches so far. The bank is
running this program with own funding as well as permanent skilled personnel.

41
4.12 Modes of Investment of AIBL
When money is deposited in the AIBL, the bank, in turn, makes investments in different forms
approved by the Islamic Sariah with the intention to earn a profit. Not only a bank, but also
an individual or organization can use Islamic modes of investment to earn profits for wealth
maximization. Some popular modes of investment of AIBL’s are discussed below:
4.12.1 Murabahah
This concept refers to the sale of goods at a price. This includes a profit margin agreed to by
both parties. The purchase and selling price, other costs, and the profit margin must be clearly
stated at the time of the sale agreement. The bank is compensated for the time value of its
money in the form of the profit margin. This is a fixed-income loan for the purchase of a real
asset (such as real estate or a vehicle), with a fixed rate of profit
INVESTMENT
MANAGEMENT
determined by the profit margin. The bank is not compensated for the time value of money
outside of the contracted term (i.e., the bank cannot charge additional profit on late payments);
however, the asset remains as a mortgage with the bank until the default is settled.

42
4.12.2 Bai' Muajjal (Credit Sale)
Literally bai' muajjal means a credit sale. Technically, it is a financing technique adopted by
Islamic banks that takes the form of murabahah muajjal. It is a contract in which the bank earns
a profit margin on the purchase price and allows the buyer to pay the price of the commodity at
a future date in a lump sum or in installments. It has to expressly mention cost of the commodity
and the margin of profit is mutually agreed. The price fixed for the commodity in such a
transaction can be the same as the spot price or higher or lower than the spot price. Bai' muajjal
is also called a deferred-payment sale. However, one of the essential descriptions of riba is an
unjustified delay in payment or either increasing or decreasing the price if the payment is
immediate or delayed.
4.12.3 Bai Salam
Bai salam means a contract in which advance payment is made for goods to be delivered later
on. The seller undertakes to supply some specific goods to the buyer at a future date in exchange
of an advance price fully paid at the time of contract. It is necessary that the quality of the
commodity intended to be purchased is fully specified leaving no ambiguity leading to dispute.
The objects of this sale are goods and cannot be gold, silver, or currencies based on these metals.
Barring this, Bai Salam covers almost everything that is capable of being definitely described as
to quantity, quality, and workmanship.
Basic features and conditions of Salam:
The transaction is considered Salam if the buyer has paid the purchase price to the seller in
full at the time of sale. This is necessary so that the buyer can show that they are not entering
into debt with a second party in order to eliminate the debt with the first party, an act prohibited
under Sharia. The idea of Salam is normally
INVESTMENT
MANAGEMENT

43
4.12.4 Ijarah
Ijarah means lease, rent or wage. Generally, the Ijarah concept refers to selling the benefit of
use or service for a fixed price or wage. Under this concept, the Bank makes available to the
customer the use of service of assets / equipment such as plant, office automation, motor vehicle
for a fixed period and price.
INVESTMENT
MANAGEMENT
different from the other either in its quality or in its size or weight and their exact
specification is not generally possible.
Salam cannot be effected on a particular commodity or on a product of a particular
field or farm. For example, if the seller undertakes to supply the wheat of a
particular field, or the fruit of a particular tree, the salam will not be valid, because
there is a possibility that the crop of that particular field or the fruit of that tree is
destroyed before delivery, and, given such possibility, the delivery remains
uncertain. The same rule is applicable to every commodity the supply of which is
not certain.
It is necessary that the quality of the commodity (intended to be purchased through
salam) is fully specified leaving no ambiguity which may lead to a dispute. All the
possible details in this respect must be expressly mentioned.
It is also necessary that the quantity of the commodity is agreed upon in
unequivocal terms. If the commodity is quantified in weights according to the
usage of its traders, its weight must be determined, and if it is quantified through
measures, its exact measure should be known. What is normally weighed cannot
be quantified in measures and vice versa.
The exact date and place of delivery must be specified in the contract.
Salam cannot be effected in respect of things which must be delivered at spot. For
example, if gold is purchased in exchange of silver, it is necessary, according to
Shari'ah, that the delivery of both be simultaneous. Here, salam cannot work.
Similarly, if wheat is bartered for barley, the simultaneous delivery of both is
necessary for the validity of sale. Therefore, the contract of salam in this case is not
allowed.
This is the most preferred financing structure and carries higher order Shariah
compliance.

44
Ijarah Thumma Al Bai' (Hire Purchase)
Parties enter into contracts that come into effect serially, to form a complete lease/ buyback
transaction. The first contract is an Ijarah that outlines the terms for leasing or renting over a
fixed period, and the second contract is a Bai that triggers a sale or purchase once the term of
the Ijarah is complete. For example, in a car financing facility, a customer enters into the first
contract and leases the car from the owner (bank) at an agreed amount over a specific period.
When the lease period expires, the second contract comes into effect, which enables the
customer to purchase the car at an agreed price. The bank generates a profit by determining in
advance the cost of the item, its residual value at the end of the term and the time value or profit
margin for the money being invested in purchasing the product to be leased for the intended
term. The combining of these three figures become the basis for the contract between the Bank
and the client for the initial
lease contract. This type of transaction is similar to the contractum trinius, a legal maneuver
used by European bankers and merchants during the middle Ages to sidestep the Church's
prohibition on interest bearing loans. In a contractum, two parties would enter into three
concurrent and interrelated legal contracts, the net effect being the paying of a fee for the use
of money for the term of the loan. The use of concurrent interrelated contracts is also prohibited
under Shariah Law.
Ijarah-Wal-Iqtina
A contract under which an Islamic bank provides equipment, building, or other assets to the
client against an agreed rental together with a unilateral undertaking by the bank or the client
that at the end of the lease period, the ownership in the asset would be transferred to the lessee.
The undertaking or the one an integral part of the lease contract to make it conditional. The
rentals as well as the purchase price are fixed in such manner that the bank gets back its
principal sum along with profit over the period of lease.
4.12.5 Mudarabah
"Mudarabah" is a special kind of partnership where one partner gives money to another for
investing it in a commercial enterprise. The capital investment should normally come from
both partners.
The Mudarabah (Profit Sharing) is a contract, with ONE party providing 100 percent of the
capital and the other party providing its specialized knowledge to invest the capital.
INVESTMENT
MANAGEMENT

45
and manage the investment project. Profits generated are shared between the parties according
to a pre-agreed ratio. If there is a loss, the first partner "rabb-ul-mal" will lose his capital, and
the other party "mudarib" will lose the time and effort invested in the project.
4.13 Investment Processing of AIBL
Generally, a bank takes certain steps to deliver its proposed investment to the client. But the
process takes deep analysis. Because banks invest depositors fund are not bank’s own fund. If
the bank fails to meet depositors demand, then it must collapse. So each, bank should take strong
concentration on investment proposal. However, Al-Arafah Islami Bank (AIBL) makes its
investment decision through successfully passing the following crucial steps-
Here, investment taker (client) approaches to any of the branch of Al-Arafah Islami Bank
Bangladesh Limited (AIBL). Then he talks with the manager or respective officer (investment).
Secondly, bank considers five C’s of the client. After successful completion of the discussion
between the client and the bank, bank selects the client for its proposed investment. It is to be
noted that the client/ customer must agree with the bank’s rules & regulations before availing
investment.
Generally, bank analyses the following five C’s of the client-
1.
2.
3.
4.
5.
Character
Capacity
Capital
Collateral
Condition
4.13.1 Application Stage
At this stage, the bank will collect necessary information about the prospective client. For this
reason, bank informs the prospective client to provide and or fill duly respective information
which is crucial for the initial of investment proposal. Generally, here, all the required
documents for taking investment have to prepare by the client himself. Documents that are
necessary for getting investment of AIBL are prescribed below-
INVESTMENT
MANAGEMENT

46
Trade License photocopy (for proprietorship)
Abridged pro forma income statement
Attested copy of partnership deed (for partnership business)
Prior three (03) years` audited balance sheet (for Joint Stock Company)
Prior three (03) years` business transaction statement for the Musharaka /
Mudaraba investment
Abridged proof income statement for the the Musharaka / Mudaraba
investment
Attested copy of the Memorandum (MOA) & Articles of Association
(AOA) for the joint stock company
Attested copy of the Tax Identification Number (TIN) including final
assessment
Detailed summary of the sundry debtors and creditors (including both time
& schedule)
Summary of the personal movable & immovable assets, and others
4.13.2 Appraisal Stage
At this stage, the bank evaluates the client and his/ her business. It is the most important stage.
Because, on the basis of this stage, bank usually goes for sanctioning the proposed investment
limit or proposal. If anything goes wrong here, the bank suddenly stops to make payment of
investment. In order to appraise the client, AIBL provides a standard F- 167B from (Appraisal
report) to the client for gathering all the information. However, the following contents are
presented from that appraisal report-
Company’s or client’s information
Owner’s information
List of partners
Purpose of investment/ facilities
Details of proposed facilities/ investment
Break up of present outstanding
Other liabilities of the client
INVESTMENT
MANAGEMENT

47
Previous banker’s information
Details of sister/ allied concerns
Allied deposits as on
Business/ industry analysis
Relationship analysis
Asset- liability position of the client as per audited balance sheet
Working capital assessment
Risk grade
Particulars of the go down for storing mpi/ murabaha goods
Insurance coverage
Audit observation
Security analysis
4.13.3 Sanction Stage
As this stage, the bank officially approves the investment proposal of the respective
client. In this case client receives bank’s sanction letter. Al-Arafah Islami Bank (AIBL)
sanction letter contains the following elements-
Investment Limit in Million
Mode & amount of Investment
Purpose of investment
Period of Investment
Rate of Return
Securities:
Primary- Stock of goods in the primary security
LC/ Bills- Related Documents
Murabaha Post Investment (MPI)/ Bai Murabaha- Pledge of MPI/
Bai- Murabaha goods
MPI/ Bai Murabaha- TR: Lien on goods to be released
Cash/ Goods-
Bai Murabaha- 25% cash security on cost price to be subsequently
converted to goods security
TR (Trust Receipt) - Without cash security
Collateral- Immovable properties
INVESTMENT
MANAGEMENT

48
Cash/ Goods Security
In allowing Murabahah investment and amount of cash security is generally realized from the
client (amount depends on the nature of goods, creditworthiness of the client, collateral
security obtained etc.) which is converted to goods security after purchase of goods purchased
out of bank’s investment and client’s cash security is pledged to the bank, kept under bank’s
custody before its delivery to the client on payment.
Example- if for a Murabahah investment cash security is fixed at 25% Bank’s investment
stands at 75% on the total goods purchased. For example, if cost of total goods purchased
is Tk. 100000 Bank’s investment will be tk. 75000 and client’s cash security will be tk.
25000.
4.13.4 Documentation Stage
At this stage, usually the bank analyses wealthier required documents are in order. In the
documentation stage, AIBL checks the following some documents of the client-
Tax Payment Certificate
Stock Report
Trade License (Renewal)
VAT Certificate
Liability statement from different parties
Receivable from different clients
Other assets statement
Aungykar Nama
Ghosona Potra
Three (03) years net income & business transaction
Performance report with bank
Valuation Certificate
Particulars of the proposal
Particulars of the mortgagor
Particular of the properties
Outstanding liability position of the bank
CIB (Credit Information Bureau) report
INVESTMENT
MANAGEMENT

49
4.13.5 Disbursement Stage
As this stage, bank decides to pay out money. Here, the clients get his/ her desired funds or
goods. It is to be noted that before disbursement a ‘site plan’ showing the exact location of
each mortgage property needs to be physically verified.
4.13.6 Monitoring & Recovery stage
At this final stage of investment processing of the Al-Arafah Islami Bank Limited (AIBL),
bank will contact with the client continually, for example- bank can obtain monthly stock
report from the client in case of micro investment. Here the bank will keep his eye on over
the investment taker. If needed, bank will physically verify the client’s operations. Also if
back feels that anything is going wrong then it tries to recover its investment fund from the
client.
INVESTMENT
MANAGEMENT
Investment Processing of AIBL
Check 5 C’s of customer
1. Application Stage
2. Appraisal Stage
3. Sanction Stage
4. Cash/ Goods Security
5. Documentation Stage
6. Disbursement Stage
7. Monitoring & Recovery stage
Figure 4D: Investment Process (step by step) of AIBL

50
Chapter 5
FINDINGS
Topics
5.1 Findings
5.2 Problems
5.3 SWOT Analysis of AIBL

51
5.1 Findings
AIBL is committed to provide banking services that is purely based on Islamic Sharia
transparent and efficient in this competitive environment. Investment
Management related finding for the year 2016 and 2015 are given below:
It can be seen that deposit is the main part of the AIBL fund. So we can say that
deposit is the heart of AIBL. Investment of the bank increased with the increase of
deposit.
The Investment deposit ratio is used to calculate a bank’s ability to cover
withdrawals made by its customers. If the ratio is too high, it means that banks might not
have enough liquidity to cover any unforeseen fund requirements; if the ratio is too low;
banks may not be earning as much as they could be. AIBL’s Investment Deposit Ratio of
2013 is 85. 60% and 2012 is 85.08%. Which is goofor the bank.
Any bank investment that is in danger of default is called classified investment.
Classified investments have unpaid interest and principal outstanding, and it is unclear
whether the bank will be able to recoup the investment proceeds from the borrower.
Banks usually categorize such investments as adversely classified assets
FINDINGS

52
on their books. AIBL’s classified investment condition is better in 2012. In 2013
the classified investment ratio is 2.97% which is higher than 2012’s 2.26%. In 2015 &
2016 this amount becomes zero (0).
ROI is performance measure used to evaluate the efficiency of an investment.
AIBL’s ROI has been increased in 2013. It was 12.51% in 2012 but in 2013 it is
increased to 13.01%. Higher ROI is good for the bank.
5.2 Problems
1. Due to lack of ATM Booth facilities, the bank is not able to attract more new
deposits.
2. AIBL does not provide credit card facilities to its customers.
3. AIBL does not provide internet banking facility. Therefore, technologically
advanced people do not open account in the bank.
4. SMS banking facility is not available which is essential nowadays for depositors.
They have to come to the bank to know their account balance.
5. Banking software is not up-to-date. There are lot of software bugs, therefore often
bank officials face interruption in their work. They also use Windows XP as the
operating system which is out of date.
6. Banking service is not fast enough. Often customer need to wait for a long time for
service.
7. Marketing strategy of the bank is very poor. They do not use any modern advertising
method to attract customers.
8. People cannot know about their investment products through online. Their website
is not up-to-date and most of the section are incomplete.
9. Lack of manpower slows down their service.
10. AIBL does not provide VISA card facility to its customers.
FINDINGS

53
11. They do not have any dedicated helpline for customers.
12. Investment processing is lengthy therefore people become demotivated.
13. Depositor’s forms are not managed properly. Often forms are lost. Sometime accounts
are opened without necessary documents.
14. There are almost no modern banking facilities available other than online banking.
15. People do not know the actual profit rate for their deposited amount. So they often
become confused.
16. The record keeping system is also backdated, not followed computerized system
properly.
17. Most of the policies are backdated. Only the authority amends the policy but
preserve the old policy.
5.3 SWOT Analysis of AIBL
Every organization is composed of some internal strengths and weaknesses and also has
some external opportunities and threats in its whole life cycle.
5.3.1 Strengths
AIBL provides its customers excellent and consistent quality in every service.
AIBL is a financially sound company.
AIBL utilizes state of the art technology to ensure consistent quality and operation.
AIBL provides its work force an excellent place to work.
AIBL already achieved a goodwill among the clients.
AIBL has a research and training division.
AIBL has strong deposit and investment management capabilities.
FINDINGS

54
5.3.2 Weaknesses
AIBL lacks well trained human resource in some area.
AIBL lacks aggressive advertising.
The procedure of credit facility is to long compare to other banks.
Employees are not motivated in some areas.
5.3.3 Opportunities
Emergence of online banking will open more scope for AIBL.
AIBL can introduce more innovative and modern customer service.
Many branches can be opened in local remote area as its high demand.
AIBL can recruit experienced, efficient and knowledgeable officers and staffs as it
offers good working environment.
5.3.4 Threats
The worldwide trend of mergers and acquisition in financial institutions is causing problems.
Frequency taka devaluation and foreign exchange rate fluctuation is causing problem.
Lots of new banks are coming in the scenario with new service.
Local competitors can capture huge market share by offering similar products.
FINDINGS

55
Chapter 6
RECOMMENDATIONS
AND
CONCLUSIONS
Topics
6.1 Suggestions
6.2 Conclusions

56
6.1 Suggestions
AIBL should change the outlook of the branch to attract premium customers.
AIBL should provide an effective training program for the junior level officers.
The service in Rangpur Branch 15, Central Road, Payrachattar, Rangpur has really good
prospect, thus the bank should work actively so that it can attract more clients.
The branch should give more emphasis on proper record keeping.
They should give more attention in increasing their deposits in different accounts.
As it has been seen that AIBL’s Investment income were more than double by last 4 years,
it conveys very good sign. They should try to retaining their position.
From the geographical allocation it has been seen that AIBL give less concentration at
Khulna and Barisal Region but more concentration at Dhaka and Chittagong, they should
give concentration at Khulna and Barisal Region also.
Optimal cost for sanctioning and disbursing investment should be minimized.
The number of branches should be increased.
Bank should offer more facilities to the consumers such as credit card, master
card, ATM Machine etc.
Banking is service-oriented marketing. Its business profit depends on its service quality. That
is why the authority always should be aware about their service quality. Employees must give
individual attention to the consumer. For that, they can recruit more employees.
AIBL should invest in profitable sector. Among the different sector AIBL should invest
highly in Industry and Commerce sector for high profit.
RECOMMENDATIONS
& CONCLUSIONS

57
6.2 Conclusions
Al-Arafah Islami Bank limited is a leading Private Islami bank in Bangladesh with superior
customer bases that are loyal, faithful, worthy towards the bank. The service provided by the
young energetic officials of the Al-Arafah Islami Bank Limited is very satisfactory. As an
Islami bank AIBL has to follow the rules of Bangladesh bank despite the fact that these rules
sometime restrict the foreign business to some extent. During my internship in this branch I
have found the investment department to be very efficient; therefore, this department plays a
major role in the overall profitability of the branch and to the Bank as a whole.
Al-Arafah Islami Bank Ltd is one of the most potential islami banks in the islami banking sector.
It has a large portfolio with huge assets to meet up its liabilities and the management of this
bank is equipped with the expert bankers and managers in all level of management.
The Bank’s drive towards market leadership as well as quality in choosing business will
continue in the coming years although competition is intensified with the opening of more
financial institutions. The Bank is optimistic that the volume of business will increase in future
through pragmatic and market friendly policies. The Bank shall continue to explore new fields
of investment and take steps to open new Branches for Banking. The bank should endeavor to
adopt customer-oriented policies and introduce new techniques that will help to earn profit and
increase greater confidence of the
existing prospective customers.
It was an honor for the researcher that he has worked as an intern in a reputed organization like
Al-Arafah Islami Bank Limited. AIBL is a bank that offers the best Islami banking services
to its customer and also a fast growing bank. By working in 15, Central Road, Payrachattar,
Rangpur, the knowledge learned would be helpful enough to sustain with the real
organizational environment.
RECOMMENDATIONS &
CONCLUSIONS

58
References
1) Frank K. Reilly and Keith C. Brown, “Investment Analysis Portfolio
Management”, 7th Edition.
2) AIBL Annual Report 2016
3) AIBL Annual Report 2015
4) www.al-arafahbank.com/
5) www.facebook.com/alarafah.bd
6) en.wikipedia.org/wiki/Islamic banking
7) www.bangladesh-bank.org/fnansys/bankfi.php
REFERENCES

59
List of Acronyms
AIBL
PLS
BBA
AD
MSME
AGM
EGM
BGIIB
CRM
ATM
CSR
CSBIBB
LC
PO
GB
CIB
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
=
Al-Arafah Islami Bank Limited
Profit-Loss-Sharing
Bachelor of Business Administration
Authorized Dealer
Micro, Small and Medium Enterprises
Annual General Meeting
Extraordinary General Meeting
Bangladesh Government Islamic Investment Bond
Core Risk Management
Automated Teller Machine
Corporate Social Responsibility
Central Sharia Board for Islamic Banks of Bangladesh
Letter of Credit
Pay Order
General Banking
Credit Information Bureau
APPENDIX

60
Researcher Internship Experience
Rangpur Branch 15, Central Road, Payrachattar, Rangpur 0521-55830, 01773-268000 is
one of the established branches of Al-Arafah Islami Bank Limited. It has built up a very good
customer base and performing really well. The researcher has got the opportunity to work as an
intern in the Rangpur Branch 15, Central Road, Payrachattar Branch and the
tenure of his internship was 1st June to 30th August. Through this period, he had many
responsibilities and job roles. Any branch of AIBL deals with the three parts of activities.
These are: general banking, investment and foreign exchange. As the researcher was an intern,
his
tasks were mostly related to general banking. he got to learn a lot of things about branch
banking during this time. he got familiar with the work environment, he got to know how all
the branches are centralized and about the process flow
Experience Regarding Personal Improvement
1. Time Management
Time management is the great virtue for each & every person. As a student, the researcher spent only
1 to 2 hours in the university campus with gossiping, taking tea &snacks. But in the professional life
like bank, each & every employee reaches in the office not more than 9.30 am and go out from office
not less than 6pm due to heavy working pressure. So, he also maintained my office time. They do their
daily task in daily basis. He also helped them to make their task easier.
2. Direct Communication with Customer
Today's world is so challenging. Customer has more power due to wide range of
switching option. The researcher was little nervous in my first few days to communicate with customer.
But in later, he was enjoying serving the customer.
The researcher always wears jeans, t-shirt, casual short shirt, snicker. In the 3 months’ internship period
I maintained the dress code regularly and I'm
habituated with this now.
APPENDIX
3. Formal Dress Code

61
5. Teamwork
Theoretically I read what is team and teamwork but practically I did not have experience
about it. In the professional life there's exist team like Bangladesh cricket team. Each &
every team member has some responsibilities and target to fill up. I observed it very
closely and helped them to make their task easier.
Practical Working Experience
(a) Account Opening
the researcher filled different types of account form for the customer. There is different type of
Bank account such as-
Current Account: he filled up the current account form for the clients. he also
checked the account form and checked the documents for opening the account.
Savings Account: he filled up the savings account form which is known as
Mudarabah Savings Account (MSD) for the clients. he also checked the account
form and check the documents of opening the Account.
Term Deposit: Here he filled up the DPS form which is known as ITD in AIBL &
also checked the DPS form and attested the documents, opened the DPS number,
wrote deposit book for the customer.
He collected necessary papers from customers such as- photocopy of National ID
card, Passport, Trade License etc.
He wrote down Transaction Profile of several accounts.
APPENDIX

62
(b) General Banking Task:
Filled up Pay Order for the client and signed by the applicant, update in pay order
register
Filled up the application of cheque book for the customer
Input the cheque book number in register book
Issued cheque random digit number
Matched the initial of customer at the time of giving cheque book
Wrote inward and outward register book
(c) Investment Task
Filled up the investment application form for the customer.
Checked the necessary document and listed them up.
Filled up the dill papers for the clients.
Prepared debit and credit voucher for the payment and adjustment.
Filled up the CI form.
Listed the document for sanction.
(d) Cash Department Task
Received cash from the customer and pay in counter.
Counted cash which was given by the clients of the bank.
Received cheque from the client and gave them cash.
(e) Others
APPENDIX
Assisted customers with necessary information.
Putted various types of seals for clearing.
Updated the record book of clearing, FDR and cheque books.
Data entry task by computer.
Filled up other necessary forms for the bank.
Furnished all documents for monthly report.
Checked out the previous account form & correction if needed.

63

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