CHAPTER # 01

Orientation of the Report

1
1.1 Background of the Study
Any academic course of the study has a great value when it has practical application in the real
life. Only a lot of theoretical knowledge will be of little importance unless it is applicable in the
practical life. So we need proper application of our knowledge to get some benefit from our
theoretical knowledge in our practical life. Building a strong base of practical knowledge is
possible through thesis. When theoretical knowledge is obtained from a course of study, it is
only the half way of the subect matter. !hesis implies the full application of the methods and
procedures through rich ac"uired knowledge of the subect matter can be fruitfully applied in
our daily life, such a procedure of practical application is known as thesis. !he case study is
titled An ana!y"i" of depo"it Perfor#ance of S$%B& As a student of #BA, this study will be
more significant in my practical life.
1.' O()ecti*e" of the Study
!his study is aimed at providing me invaluable practical knowledge about banking operation
system of Shahalal $slami Bank %td, especially its deposit schemes.
Specific o()ecti*e"+
!o evaluate various deposit schemes of S&$B%.
!o identify the problems of deposit schemes of the bank
.!o make some recommendations to overcome those problems.
1., -ethodo!ogy of the Study
$nformation collected to furnish this report is from secondary sources.
Secondary Source" of .ata+
'ocuments and materials of deposit schemes of Shahalal $slami Bank %td.
Annual report of Shahalal $slami Bank %td.
.Website of S&$B%
(
1./ &i#itation" of "tudy
!o prepare this report $ have faced the following problems, which may be termed as the
limitations of the study. !he maor limitations of this study are given as follows)
!here were some restrictions to have access to the information confidential by concern
authority.
'ue to some legal obligation and business secrecy bank was reluctant to provide data.
*or this reason, the study limits only on the available published data.
!he bankers are very busy with their obs, which lead a little time to consult with them.
+
CHAPTER # 0'
Theoretica! A"pect of %"!a#ic Banking
,
'.1 %"!a#ic Banking Concept"
According to %"!a#ic Banking Act of -a!ay"ia0 an $slamic Bank is -company, which carries
on $slamic Banking business. $slamic Banking business means banking business whose aims and
operations do not involve any element which is not approved by the religion $slam..
.r. 1iauddin Ah#ed says, -$slamic banking is essentially a normative concept and could be
defined as conduct of banking in consonance with the ethos of the value system of $slam..
'.' O()ecti*e" of %"!a#ic Banking
An $slamic Bank is a financial institution that operates with the obective to implement and
materiali/e the economic and financial principles of $slam in the banking area.
!he main obectives of $slamic Banking are)
!o conduct interest 0 free banking.
!o establish participatory banking instead of banking on debtor 0 creditor 0 creditor
relationship.
!o invest through different modes permitted under $slamic Shariah.
!o accept deposits on profit 0 loss sharing basis.
!o establish welfare oriented banking system.
!o e1tend co2operation to the poor, the helpless and the low 0 income group for their
economic enlistment.
!o play a vital role in human development and employment generation.
!o contribute towards balanced growth and development of the country through
investment operations particularly in the less developed areas.
!o contribute in achieving the ultimate goal of $slamic economic system.
3
'., %"!a#ic Banking -o*e#ent Throughout the 2or!d
!he e1pansion and unfolding of $slamic banking along with traditional interest based banking is
a recent phenomenon. $slamic banking is an inseparable part of $slamic economy. 'uring fifties
it was only a subect matter of research and was limited to the writings of scholars and
philosophers. 'uring the si1ties actual e1periments were made and in the seventies $slamic
banking institutions started gaining strength. !he eighties and nineties are and the period of
consolidation and now $slamic banking is coming up as the only welfare banking system of the
modern world.
4onse"uently, $slamic banking movement achieved steady progress and assumed significant
dimension and role with the establishment of the 5asser Social Bank 6178(9 *aysal $slamic
Bank in :gypt and Sudan 617889, &ordan $slamic Bank for *inance and $nvestment was
established in &ordan in 6178;9, !urkey in 617;+9. <akistan declared all banks as $slamic in 178;
and $ran declared in 17;,. :mergency of development Bank as an $nternational *inancial
$nstitution with a view to institutions was considered as a milestone in the history of $slamic
banking.
As on today, more than +== $slamic financial institutions in about 3= countries operation
throughout the world covering both #uslim and non2#uslim countries of various socio2
economic environment.
'./ %"!a#ic Banking -o*e#ent in Bang!ade"h
$n August 178,, Bangladesh signed the charter of $slamic 'evelopment Bank and committed
itself to recogni/e its economic and financial system as per $slamic Shariah.
Bangladesh government subscribed recommendation of $slamic *oreign #inister>s conference
held in Senegal in 178; regarding systemic efforts to establish $slamic banks in the member
countries gradually.
?
$n &anuary 17;1, the then president of the <eople>s @epublic of Bangladesh while addressing the
+
rd
$slamic Summit 4onference held at #akkah and !aif suggested, -!he $slamic countries
should develop a separate banking system of their own in order to facilitate their trade and
commerce..
:arlier in 5ovember 17;=, Bangladesh Bank, the country>s 4entral Bank, sent a representative
to study the working of several $slamic banks of different countries.
$n 5ovember 17;(, a delegation of $'B visited Bangladesh and showed interest to participate in
establishing a oin venture $slamic Bank in the private sector. !hey found a lot of work had
already been done and $slamic banking was in a ready form immediate introduction.
!wo professional bodies $slamic :conomies @esearch Bureau 6$:@B9 established in 178? and
Bangladesh $slami Bankers Association 6B$BA9 established in 17;= made significant
contributions towards introduction of $slamic banking in the country. !hey came forward to
provide training on $slamic banking to top bankers and economists to fill2up the vacuum of
leadership for the future $slamic in Bangladesh. !hey also held seminars, symposia and on
$slamic economics and banking throughout the country to mobili/e public opinion in favor of
$slamic banking.
At last, the long drawn struggle to establish an $slamic bank in Bangladesh became a reality and
$slamic Bank Bangladesh %imited was founded o +=
th
#arch, 17;+ in which 17 Bangladeshi
national, , Bangladeshi institutions and 11 banks, financial institutions and government bodies
of the #iddle :ast and :urope including $'B and two eminent personalities of the Aingdom of
Saudi Arabia oined hands to make the dream a reality.
Al Baraka Bank %td. 6now recogni/ed as the Oriental Bank9 was established in 17;8.
Al Arafah $slami Bank and Social $nvestment Bank %td. were established in 1773.
Shamil Bank of Bahrain 6$slamic Bankers9 has started its operation in 1778.
Shahalal $slami Bank %td. was established in (==1.
8
:1im Bank %td. converted its entire banking operation into $slamic Banking from &uly
(==,.
5ine conventional banks namely <rime Bank %td. 'haka Bank %td. South :ast Bank %td.
<remier Bank %td. !he 4ity Bank %td. &amuna Bank %td. Arab Bangladesh Bank %td. Standard
4hartered Bank and the BSB4 have so far established $slamic Banking branches in some maor
cities. #ore connectional Bank such as Bank Asia %td. and Brac Bank %td. are contemplating to
establish $slamic banking branches in the near future. !he first Security Bank %td. is going to
switch over their entire banking to $slamic Banking.
;
CHAPTER # 0,
Shah)a!a! %"!a#i Bank &i#ited 3 %t"
Profi!e
7
,.1 Hi"torica! Background of Shah)a!a! %"!a#i Bank &i#ited.
Shahalal $slami Bank %imited is based on $slamic Shariah. S&$B% is named after the name of a
saint Barat Shahalal 6@9 who dedicated his life for the cause of peace in this world and
hereafter and served the humanity. $t was incorporated as a <ublic limited company on 1
st
April
(==1 under companies Act 177,. $t started its Banking operation on #ay 1=, (=11 with the 1
st
branch 6main branch9 opened at 3;, dilkusha 4CA, 'haka obtaining the license of Bangladesh
Bank, for enlistment of economic condition of its customers as well as to contribute sustainable
economic growth and development in trade and industry of the country. $ts corporate head
"uarter is situated at 1= 'ilkusha 4CA, &iban Bima Bhaban, 'haka21===, Bangladesh. 5ow it
has (1 branches, 7 branches are in 'haka and rest 1( branches are in 4hittagong, Sylhet and
Da/ipur. !he sponsors of S&$B% are leading business personalities and renowned industrialist of
the country. 5ow this bank has paid up capital 0 ,?.;+ million and 5o. Of 'irectors 0 1+
6source $nternet9.
,.' O()ecti*e" of Shah)a!a! %"!a#i Bank &i#ited
!he prime obective of Shahalal $slami Bank %imited is to promote, foster and develop the
application of $slamic principles, law and tradition to the transaction of financial, banking and
related business affairs. $t has also been looking forward to promote $nvestments 4ompanies,
:nterprise and other related concerns engaged in such business that is acceptable and consistent
with $slamic principles, law and tradition. !he obective of Shahalal $slamic Bank %imited in
the conte1t of its role in the economy may be enumerated as follows)
!o offer contemporary financial services in conformity with $slamic Shariah.
!o contribute towards economic development and prosperity within the principles of
$slamic &ustice.
!o facilitate efficient allocation of resources.
!o help achieving stability in the economy.
1=
,., 4i"ion -i""ion
4i"ion+
!o provide "uality services to customers.
!o set high standards of integrity.
!o e1tends customers innovation services ac"uiring state2of2the2art technology blended
with $slamic <rinciples, and being total satisfaction to our clients and employees.
-i""ion+
!o e1pand $slamic banking throughout welfare oriented banking system.
:nsure e"uity and ustice in economic activities.
:1tend financial assistance to poorer section of the people.
Achieve balance growth and e"uitable development.
,./ Organi5ationa! Structure
!here are five different wings to consist the organi/ational structure of S&$B%. !hey are
Board of 'irectors
Board 4ommittees
:1ecutive 4ommittee
<olicy 4ommittee
#anagement !eam
11
,./.1 Board of .irector"
!he Board of 'irectors of 1+ members. !he Board of 'irectors is the ape1 body of the bank.
,./.' Board of Co##ittee"
!he Board of 'irectors also decided the composition of each committee and determines the
responsibilities of each committee.
,./., E6ecuti*e Co##ittee
All routine matters beyond delegated powers of management are decide upon by or routed
through :1ecutive 4ommittee, subect to ratification by the Board of 'irectors.
1(
Chair#en
4ice Chair#en
.irector"
-anaging .irector"
Secretary
,././ Po!icy Co##ittee
All matters relating to the principles, rules and regulations, ethics etc. operation and
management of the Bank are recommended by the 4ommittee of the Board of 'irectors.
1+
Chair#en
.eputy Chair#en
.irector"
-anaging .irector"
Secretary
Auditor"
&ega! Ad*i"er
,./.7 -anage#ent Tea#
,.7 %T Po"ition of S$%B&
Dulshan Branch, 'haka.
*oreign :1change Branch, 'haka.
Aawran Ba/ar Branch, 'haka.
&oydevpur 4howrasta Branch, Da/ipur.
Agrabad Branch, 4hittagong.
Ahatungan Branch, 4hittagong.
Sylhet Branch, Sylhet.
Beanu Ba/ar Branch, Beaniba/ar, Sylhet.
'argah Date Branch, Sylhet.
Ettara Branch, Ettara, 'haka.
1,
-anaging .irector"
E6ecuti*e 4ice Pre"ident
4ice Pre"ident
Sr. A""t. 4ice Pre"ident
A""i"tant 4ice Pre"ident
'hanmondi Branch, 'hanmondi, 'haka.
Shatmoshid Branch, Shatmoshid @oad, 'haka.
!hey are passing hard time in globali/ation of financial markets and banking. !o compete with
the local and foreign banks they should consider the on2line banking facilities as an add2on
service to the clients. 5ow a day>s technological service is the key factor for the service
providers in the financial institutions. !o introduce F e1plore their products F services world
wide, to get and handle with their prospective local F e1patriate customers, to make
correspondence with foreign organi/ations F institutions, they should introduce real on2line
banking facilities immediately.
,.8 The perfor#ance of S$B&
E9uity of the Bank+
!he Authori/ed 4apital of the Bank is !k. ;== million and paid2up capital of the bank is !k. (=3
million as on +121(2(=1(. !otal e"uity of the bank as on +121(2(=1( was !k. (8, million. !he
Bank is going to further increase its Authori/ed and paid2up capital soon.
4omparative position on :"uity for the year (=11 F (=1( is given below)
:A#ount Taka in #i!!ion;
Particu!ar" '011 '01'
a9 <aid2up 4apital (=3.== (=3.==
b9 Share <remium ?.=? 2
c9 Statutory @eserve 1?.,3 1.=,
d9 <roposed 'ividend 6Bonus Share9 (3.?( 2
e9 <rofit and 6%oss9 Account =.+3 1.((
f9 Deneral <rovision 61G9 (=.== (.18
g9 :1change :"uali/ation =.18 2
Tota! '<,.87 '0=./,
Capita! Ade9uacy+
13
!he :"uity of the Bank as in +121(2(=11 was !k. (=7 million and the same stood to !k. (8,
million on +121(2(=1(, which was 1(.,3G of the risk weight assets as against the re"uirement of
;G. !he Bank maintained the 4apital Ade"uacy @e"uirement 64A@9 for the year (=1(. !he
core capital was 11.,?G of risk weighted Assets an on +1
st
'ecember (=1( as against
re"uirement of ,G.
.epo"it+
!otal deposit of Shahalal $slami Bank stood at !k. +.+=( million as on +121(2(=1( as against
1.+7;7 million of +121(2(=11 registering an increase of !k. 1,7=, million, i.e. 1+?G growth.
'eposit is the Hlife0blood> of a Bank. Bank has given almost importance in mobili/ation of
deposits introducing a few popular and innovative schemes. !he mobili/ed deposits were plough
back in economic activities through profitable and safe investments.
a9 #illionaire Scheme.
b9 'ouble Benefit Scheme.
c9 #onthly $ncome Scheme.
d9 #onthly Saving Scheme.
e9 Ba Scheme.
The .epo"it > #i6 of the Bank on '1?0'?'01, 2a" (e!o2+
Sl. 5o. $tems !aka in million <ercentage of !otal
'eposit
1 Al2Wadia 4urrent Account 1+7.18 ,.(1G
( #udaraba Savings 'eposit 1,11=.+3 ++.?+G
+ #udaraba Short 5otice 'eposit 17=.,1 3.88,G
, #udaraba !eam 'eposit 1,,?(.37 ,,.(7
3 'eposit in Scheme (?(.;; 8.7?G
Tota! ,0,0'.17 100.00@
1?
Operating Re"u!t+
a; %nco#e+
1. %n*e"t#ent %nco#e+
!otal $nvestment $ncome of the Bank as at +1
st
'ecember (=1( was !k. 1=7
million as against !k. (8 million of the preceding year registering (37G growth
over last year, which was ??G of the total income compare to ?;G of (=11.
'. Aon?%n*e"t#ent %nco#e+
!otal non2investment income of the bank as at +1
st
'ecember (=1( was !k. 1=7
million as against !k. (8 million of the presenting year registering +=,G growth
over last year, which was +,G of the total income compared to +(G of (=11.
(; E6penditure+
1. Profit Paid on .epo"it"+
Bank distributed profit of !k. 1,1 million against !k. ,8 million of (=11 among
the #udaraba 'eposit in the year (=1( being ?;G of the investment income
earned from deployment of #udaraba fund.
'. Opening E6pen"e+
!otal opening e1pense as on +121(2(=1( was !k. ;= million as against !k. (((
million, resulting a total opening profit of !k. 73 million up to +121(2(=1( as
against 8 million in (=11.
18
:A#ount in -i!!ion Taka;
<articulars +121(2(=1( +121(2(=11
!otal $ncome +1?.3, ;,.3+
%ess) !otal :1penditure ((1.?8 88.13
5et <rofit before !a1 7,.;8 8.+;
%ess) <rovision Against $nvestment 18.;+ (.18
%ess) <rovision for !a1ation +=.;1 (.73
!otal /8.'' '.'8
Hu#an Re"ource .e*e!op#ent+
!otal number of manpower of the Bank stood at 173 as on +1
st
'ecember (=1( as against ;, of
+1
st
'ecember (=11. !he Bank has introduced a good number of staff welfare schemes to be at
par with the banking communities and improve the collection of its employees.
1;

CHAPTER # 0/
.epo"it co!!ection Bunction .eci"ion of
S$%B&.
17
%ntroduction+
Shahalal $slami bank limited is a commercial bank and its play a very important role in our
economyI in fact it is difficult imaging how our economic system would function efficiently
without the help of commercial bank. !hey are heart of our financial structure since they have
the ability, co2operation with the Bangladesh Bank to add to the money supply of the nation and
thus create additional purchasing power. !hese characteristics set commercial banks apart from
other financial institution. $n addition to issuing deposits payable on demand they accept time
deposit. By lending and investing these resources and by transferring funds throughout the
nation and even between countries, they make possible a more complete utili/ation of resources
of the nation. Although banks create no new wealth, their lending. $nvesting and related
activities facilitate the economic process of production, distribution and consumption. !here are
mainly three sections in S&$B% via Deneral Banking 'ivision, $nvestment 'ivision and *oreign
:1change 'ivision. !hese 'ivisions have small departments or units under them.
/.1 .i*i"ion" S$B&+
!here are four sections working together to fulfill the target of the organi/ation.
Account opening 'epartment
@emittance 'epartment
4ash 'epartment
Accounts 'epartment
/.' .epo"it -o(i!i5ation of S$%B&+
Bank account is a contractual relationship between a bank and the customers. $t is the best way
for a customer to build relationship with the bank. %ike interest2based conventional banks, the
main function of Shahalal $slami Bank %imited 6S&$B%9 is to mobili/e saving and provide
financial support to the entrepreneurs. 'epositors receive interest in a predetermined rate for
their deposits make with an interest based banks, where S&$B% neither pay not receive interest
and mobili/es saving of the common people in line with $slamic Shariah.
(=
'eposit account can take in a various forms such as)
Al 0 Wadiah 4urrent 'eposit 6A49
#udarabah Savings 'eposit 6#S'9
Short 0 5otice 'eposit 6S5'9
/.'.1 A! > Cadiah Current .epo"it :AC.;
Shahalal $slami Bank %imited receives deposits in its Al 0 Wadia 4urrent Account. $t has some
similarity with the current account of conventional bank. !he term Al 0 Wadiah 4urrent 'eposit
means deposit of money allowing somebody to sue it. Banks being trustee preserves and keeps
or in safe custody of what is deposited. 'epositors feel safe in keeping their money with the
bank and take transaction facilities. Bank provides assurance of returning money to the
depositors on demand. $n the process of opening Al2Wadiah 'eposit, the bank gets approval of
the depositors regarding the use of the deposited money and earns profit out of their
development. Any losses incurred by way of such investment are totally borne by the bank.
!hus, the depositors don>t take the risk of losses with Al2Wadiah 4urrent 'epositI they also
don>t e1pect any profit from it. 'epositors are provided with che"uebook. !hey can withdraw or
deposit any amount as and when they like. Bank may charge a fee in the account. Al2Wadiah
'eposit are short terms and very uncertain, thus banks have to be very useful in the investment
of money from this account.
/.'.' Denera! .ocu#entation re9uire" for opening a :AC.;+
a; Bor an %ndi*idua! Cu"to#er+
4opy the passport, if available or :mployer>s 4ertificate or 4ommissioner>s
4ertificate or %etter of $ntroduction by a person accepted to the Bank.
!$5 4ertificate, if applicable.
!wo recent passport si/e photographs duly attested by the $ntroducer.
(; Bor So!e Proprietor"hip+
4opy of !rade %icense.
(1
!wo recent passport si/e photographs of the proprietorCSignatory duly attested by the
$ntroducer.
4opy of the passport the proprietorCSignatory, if available
4ommissioner>sC4hairman>s 4ertificate or %etter of $ntroduction by a person
accepted to the Bank.
!$5 certificate.
c; Bor Partner"hip+
4opy of <artnership 'eed of the *irm.
%ist of <artners with their address and phone number.
4opy of !rade %icense.
:1tract of @esolution of the <artners of the *irm for opening the account and
authori/ation for its operation duly certified by the managing <artner of the *irm.
*or @egistered <artnership, 4ertificate of @egistration of the *irm along with duly
certified copy of the <artnership 'eed.
!wo recent passport si/e photographs of each <artnerCSignatory duly attested by the
$ntroducer.
4opy of <assport of each <artnerCSignatory, if available or
4ommissioner>sC4hairman>s 4ertificate or %etter of $ntroduction by a person
acceptable to the Bank.
!$5 4ertificate.
d; Pri*ate 3 Pu(!ic &i#ited Co#pany+
4ertified true copy of the #emorandum and Article Association of the 4ompany.
4ertified true copy of 4ertificate of $ncorporation of the 4ompany.
4ertificate true copy of 4ertificate of 4ommencement of Business of the 4ompany
in case of <ublic %imited 4ompany.
%atest list of 'irectors with address and phone number along with *orm J$$.
((
:1tracts of duly adopted @esolution of the Board of 'irectors of the 4ompany for
opening the Account and authori/ation for its operation duly certified by the
4hairmanC#anaging 'irector of the 4ompany.
4opy of !rade %icense.
!wo recent si/e photographs of each signatory duly attested by the introducer.
4opy of the passport of each signatory, if available or 4ommissioner>sC4hairman>s
4ertificate or %etter of $ntroduction by a person acceptable to the Bank.
!$5 4ertificate.
/.'., Opening a -udara(a "a*ing .epo"it :-S.;+
#udaraba Saving 'eposit 6#S'9 is open by the lower and middle people who wish to save a
part of their incomes to meet their future need intend to earn an income from their savings. $t
aims at encouraging savings of non2trading persons6s9, institution6s9, society, etc. by depositing
small amount of money in the bank.
Re"triction on 2ithdra2a!" and depo"it+
!he number of withdrawals over a period of time is limited. !wo withdrawals per
week are permitted. But more than that no interest will be paid on rest amount for
that month.
!he total amount of one or more withdrawal on any date should not e1ceed (3G of
the in the accounts unless 8 6seven9 days advance notice is given.
!he customer may deposit any amount in the savings bank account subect to a
minimum of !k.(===C2 in the account.
Pay#ent of Profit+
Shahalal $slami Bank %imited is proving 3.3G profit on #udaraba Saving 'eposit.
Opening a "a*ing account+
*or Operating a #udaraba Saving 'eposit following documentation are re"uired
!wo copies of passport si/e photographs.
(+
$ntroductory reference.
4ommissioner>sC4hairman 4ertificate.
Denera! Precaution" of opening an -S. Account+
After opening an account and before issuing a 4he"uebook the authori/ed officer should check
the account operating form for the complete information, which is given by the customers.
5ame of the account holder.
<hotos of the account holder.
'ate of opening
!ypes of account.
<resent and permanent address
5ame of the nominee and their address.
$nitial deposit
Specimen signature in the form in the -Specimen signature card..
5ame, address and the account number of the introducer.
/.'./ -udara(a Short Aotice .epo"it :-SA.;+
Shahalal $slami Bank %imited also receives term deposit from the clients. !he S5' account is
different from the interest2based banks. $t is also a !ime 'eposit account. !he formalities for
opening of this account are similar to those re"uired for Al2Wadiah 4urrent Account. !he only
difference is that seven 689 days notice is re"uired for withdrawal of any sum and profit is paid.
!he rate of profit for this account is 3G. $f the withdrawal on demand is desired, it may be paid
subect to the for2feature for the period of notice or the e1pired of notice.
/., .ifferent Type" of Sche#e+
(,
!he Shahalal $slami Bank %imited 6S&$B%9 is containing some 'eposit Scheme, which are the
really profitable for bank and customer. !he Bank maintains Shariah 0based transaction with
their customer by different Scheme those are)
1. #onthly 'eposit Scheme 6#'S9
(. #udarah !erm 'eposit @eceipt 6#!'@9
+. #onthly $ncome Scheme 6#$S9
,. 'ouble <rofit 'eposit Scheme 6'<'S9
3. #illionaire Scheme.
?. Ba <alon Scheme.
/.,.1 -onth!y .epo"it Sche#e :-.SE.PS;
!his account open very easy and there are no fi1ed day to open. Account holders do not need
any savings account if heCshe directly pays their monthly installment. Account holders carefully
complete the #'S form and attests two copies passport si/e photograph one nominee and other
own with form. Account holders can pay advance to continue their installment or can give
permanent instruction from hisCher savings account. $n this term, the account holders are bound
to pay !k.3= for transferred and !k.3C2 for service charge. $f the account is close before the
maturity then profit will be calculate according to saving rates. $f a depositor fails to pay
calculate as Savings rate. But for the first si12month no profit will be calculate. 5ominee will
enoy the profit will in absence of the accountholder. 'epositor will get the profit after the
matured according to following table)
%n"ta!!.
period
Tk.
100
Tk.
'70
Tk.
700
Tk.
10000
Tk.
'0000
Tk.
70000
Tk.
100000
Tk.
'70000
Tk.
700000
3 years ;=(3 (=1(
3
,=1(3 ;=(3= 1?=3=
=
,=1(3= ;=(3== (=1((3
=
,=1(3==
; years 133=
=
+;83
=
883== 133==
=
+1===
=
883=== 133===
=
+;83==
=
883====
1=
years
(((=
=
333=
=
111==
=
(((==
=
,,,==
=
111===
=
(((===
=
333===
=
111====
-udara(a Ter# .epo"it Receipt :-T.R;+
(3
$t is like a fi1ed deposit in the conventional banking system but it does not receive or accept
interest father, this account give profit and collect deposits. $n this mode less than that !k.1 crore
or !k.1 crore and above can be deposited against client will get non2transferable instrument of
e"ual amount. $f a customer withdraw hisCher money before one month than heCshe will not get
any kind of profit. On the other hand, after the matured if client don>t withdraw hisCher money
than it will be auto renewed with imposed profit for the ne1t days. $f a depositor would like to
withdraw his profit after si1 months heCshe will get the profit accordance with previous years
profit rate. After the announced yearly profit or loss, if bank felt in loss posting then the
depositor bound to incur the loss. $n absence of account holder the selected nominee will get the
money. Account holder bound to bear any kind of ta1 or e1cise duty according to government
circular. !he profit rates of this account are)
Ti#e of .epo"it Fp to Tk. 1:one; crore
1 #onth ;.==G
( #onths ;.3=G
+ #onths 11.==G
? #onths 11.3=G
1 Kear 1(.==G
/.,., -onth!y %nco#e Sche#e :-%S;+
!his scheme is very popular in our country, ob retreat people opens this scheme. And which
people are not able to do business than they are wanting to safe from risk and they open it. $t is
the scheme for profit earning. $n this account depositor can deposit minimum of !k. 3=,===C2
and above. 'epositor will get !k3==C against !k. 3=,===C2. And it is the fi1ed deposit for +
6three9 years. $f the accountholder to want to close hisCher account before maturity date than
heCshe will get profit accordance with savings rate that is 3.3G. $n the absence of accountholder,
the specified nominee will get the whole benefit. !he profit rates of this account are)
Period of Sche#e Taka Per #onth Pro*i"iona! Rate Re#ark"
, Gear" Tk.1000E? for one !ac 1'.00@
Credit Account
Au#(er i" re9uired
(?
/.,./ .ou(!e Profit .epo"it Sche#e :.P.S;+
!he Shahalal $slami Bank gives the facility to the client by the $slamic Shariah #udaraba rules
and regulations. $n this scheme depositors can deposit more than !k.1=, === for ? years and after
the maturity date accountholder will receive double than hisCher deposited amount. 'epositor
will get ;=G investment facility by deposit the deposit receipt. Bank can invest this amount any
sector by the $slamic Shariah rules and regulations. Accountholder are bound to pay any
government ta1. *or opening this account applicant need recent one copy photograph and one
copy photograph of nominee. !he profit rates of this account are)
Period of Sche#e Pro*i"iona! Rate
8 Gear" 11.81@

/.,.7 -i!!ionaire Sche#e+
$t maturity is long than other scheme. Denerally this account is designed for children. Bere,
applicants are the selected people for operating the account on behalf of the accountholder. !he
depositor should to deposit the account within first 13 days of the monthI neither will heCshe be
designated as debtor to the bank. $f 13
th
date is the off day then the ne1t working day will be
schedule date. Accountholder can open more one account this Branch. 'epositor will get ;=G
loan facility against the deposit money. 5o che"uebook will be issued for this account, but the
bank will provide deposit book.
!he profit rate based on different amount and time are given below)
Ti#e A#ount Per #onth Tota! A#ount And Profit
Rate
1( years !k. +(;=CL !k.1= %ac
13 Kears !k. (1(=CL !k.1= %ac
(= Kears !k. 1=;=CL !k.1= %ac
(3 Kears !k. 383CL !k.1= %ac

(8
/./ Tota! Account and .epo"it
Shah)a!a! %"!a#i Bank &i#ited
A" on ,0?10?'01'
A#(orkhana Sy!het Branch
Applicant !otal Amount
AC. (,1
.P-SS 1+8
%A4 +=,
-.S (33;
-%S +=3
-S 1' +=
-" 17 7=
-S '0 ,,
-S '7 1+3
-S. 1==1
Ha)) 8
-T.R ,3?
SA. (8
!otal '0<=8
Core .epo"it + 10'H<01<10/7<./<
Bank .epo"it + 1000<.,1'.701.<<
.e#and .epo"it + 8100,'0'77.'H
Ti#e .epo"it + '0',,0/710<0,0=8
(;
/.7 Che9ue Book %""ue
4he"ue Book is a material to withdraw money from the bank. $t is a very convenient way to
transact money from one place to another without any accident. $f any one opens an account
then sheChe will apply for a 4he"uebook on re"uisition slip. After verifying the signature of the
account holder by the officer issues 4he"ue. !hen we will assign numbers to the leaves of the
4he"uebook and account number in the register book. !he account number and branch seal will
also be written on every leaf of the 4he"uebook. !wo officers initiali/e the account number and
leaf numbers the issuing officer will also check the register book and initiali/es it also. !hen the
4he"uebook is delivered to the party after taking the signature on the register book from the
party.
.up!icate Che9ue Book i""ue+
When a party looses hisCher 4he"uebook, then heCshe applies for duplicate 4he"uebook. Bank
stop payment order for that lost 4he"ue book series in the respective ledger. !hen client needs
guarantor>s certificate and guarantor must be an account holder of that branch with sufficient
balance. $n this case, the party will apply to the branch manager for duplicate 4he"uebook. !he
party must give indemnity bondage referring that heCshe will liable for any fraud2forgery by the
lost 4he"ue. After the formalities Bank issue of new 4he"uebook for client.
Return of the Che9ue+
A 4he"ue may be returned by the following reason)
Account 4losed.
$nsufficient funds.
<ayment stopped.
@efer to drawer.
'rawn against uncollected funds.
Amount in words and figure differ.
'rawer>s signature differs.
(7
Alternation re"uires draw>s full signature.
4he"ue postdated.
'ate incompleteCmissing.
4learing house stamp missing.
E6a#ined of the Che9ue+
!he <assing official must e1amine the followings)
Whether the instrument presented is related to the branch.
!he instrument is not undatedCanti2datedCpost2dated.
!he instrument is not crossed since crossed instruments are not payable over the
counter.
!he amounts is words and figures are written and do not differ.
!here is no alternation anywhere on the instrument.
$ncase of order 4he"ue the proper identification of the payee ensure to the
satisfaction of the Bank.
!he instrument bears the signature of the drawer.
!he number of the instrument along with preceding series if any, conform to the
numberCseries issued and recorded in the relative account particulars.
!he instrument bearing similar number was not been paid earlier.
/.8 &oca! Re#ittance
%ocal @emittance means sending money from one place to another for the customers and it is
very important service system in our country. *or this service, our country business sectors are
get facility by transfer funds from one place to another. Some of the instrument that Shahalal
$slami Bank %imited, *oreign :1change Branch provides are immense beneficial to the clients.
!hese are)
1. 'emand 'raft 6''9
(. <ay Order 6<O9
+. !elegraphic !ransfer 6!!9
+=
.e#and .raft :..;+
'emand 'raft is an order of issuing bank in another branch of the same bank to pay specified
sum of money to the payee on demand. $t is generally issued when customer wants to remit
money in any place which is out of the clearinghouse area of issuing branch payee can be
purchaser himself or another. Bearing money may be risky. $t is a negotiable instrument and it
can be crossed or not. *or payment of '', paying branch first has to be confirmed that the ''
is not forged one.
*irst bank 4he"ues the -!est 4ode. mentioned on the draft. $f -!aste 4ode. agrees then believe
that '' is not forged and makes payments. *or further confirmation, the issuing bank sends an
advice about the '' to the paying branch. *or '', 4ommission is taken in the following way)
<articulars 4hanges
$ssuance M =.13G #inimum !k. (3.==
!ele1 4harge At actualC#inimum !k. 3=.==
%""uance of .up!icate !k. 13=.==
Pay Order :PO;+
!his is very important instrument of the Bank. <ay Order gives the payee the right to claim
payment from the issuing bank. $t can be en2cashed from issuing bank only. Enlike 4he"ue,
there is no possibility of dishonoring pay order because before issuing pay order banks takes out
the money of the pay order in advance. <ay order cannot be endorsed or crossed and so it is not
negotiable instrument. <ay order commission is like this)
<ay Order Amount 6!aka9 4ommission And Nat 6!aka9
Ep to 1.== %ac 3=O;L3;
Ep to 3.== %ac 1==O13L113
Above 3.== %ac 13=O(+L18+
Te!egraphic Tran"fer :TT;+
+1
!elegraphic !ransfer is the "uick service system than others. By this method money is transfer
to another place by telegraphic message. Denerally for such kind of transaction payees should
have account with the paying bank. Otherwise it is very difficult for the paying bank to
recogni/e the e1act payee. !est code is also furnished on the !! message for the protection of it.
When sending money is urgent then the bank use telephone for remittance. !his service is only
provided for valued customers. Who is very reliable and have long2standing relationship with
bank, !! commissions are)
Particu!ar" 4harges
$ssuance M =.13G or minimum !k. (3.==
4ancellation !k. 1==.==
/.< Acti*itie" of C!eaning .epart#ent
On behalf of the customer bank receives their proceeds of instruments such as 'rafts, 4he"ues,
<ay Order and sends for collection through these methods)
Outward Bills for 4ollection 6OB49 and $nward Bills for 6$B49 within the cleaning houses area.
C!earing
4learing 'epartment works are classified in two ways)
Outward 4learing
$nward 4learing
/.<.1 Out2ard C!earing+
!his instruments drawn on other banks, within the clearinghouse area, are deposited through our
clients are sent for collection is called outward clearing.
Procedure for Out2ard C!earing+
+(
$nstrument received
4heck these items in the instrument) a9 date, b9 branch, c9 amount in words and
figure d9 signature
Special crossing seal, clearing seal, endorsement seal as -<ayees AC4 credited.
:ntry in the Outward 4learing @egister.
<reparation for 4learing Bouse) a9 Schedule making, b9 send to principal office.
!he amount in party AC4 in the clearing part is not in the available balance part of the computer
program. $f the instrument is honored then the amount merges are available balance. !his is
done by customi/ed software prepared by S&$B% O! 'epartment.
/.<.' %n2ard C!earing+
When we receive che"ue drawn on our branches within the clearinghouse area presented by
other banks is known as inward clearing)
Procedure for %n2ard C!earing+
$nstrument 6''C4he"ueC<O9 comes from principal office
:ntry in -$nward @egister.
4he"ue 0 in computer
'' 0 '' payable
<ay Order respective register
Sign in the register by authori/ed officer
4ancellation of instrument
Send $B4A to %ocal Office for honored instrument
Send @eturn memo, showing cause, to %ocal Office for dishonored instrument.
/.<., Tran"fer .e!i*ery+
++
!ransfer delivery is of two types)
Outward
$nward
Out2ard Tran"fer .e!i*ery+
$nstrument send for collection to other branches is outward transfer delivery. $ts procedure is
like this)
@eceive instrument
Special crossing seal, transfer delivery seal, endorsement as -payees AC4 will credit.
:ntry in -Outward transfer delivery. register
Schedule enclosed
@eceive $B4A and credit the party AC4
%n2ard Tran"fer .e!i*ery+
When instrument come to our branch for collection then it is called inward transfer delivery. $ts
procedure is as follows)
@eceive instruments
Nerification of following items are taken.
Branch
'ate
Amount in words and figure
Signature
Serial number
:ntry in -$nward transfer delivery. register
Noucher
$B4A issue
+,
/.H Acti*itie" of Ca"h .epart#ent
4ash department is the most vital department of a bank and it is call blood of a bank. $t is a
platform to communicate with customers. 4ash department receives F pays cash directly.
$n the cash department there are following register)
Nault register
4ash receive register
4ash payment register
4ash balance register
@ough cash balance book
4ash remittance register
Aey register
4ash position memo
!here is a procedure of cash in and cash2out from the vault. Also a systematic procedure is
maintained for receiving cash through different vouchers and payment against different che"ues
and vouchers.
4au!t Opening+
!he vault opened with two different keys of two respective authori/ed officers. !he officers are)
#anager of the Branch
4ash 0 in 0 charge Officer
Strong room has two keyholes opened by two officers respectively by two keys of cash.
Denerally sub2manager of the Branch bears authority absence of manager. Drill door one
keyhole opened by 0 two keys of two officers and bring out following thing) 4ash, Nault
register, @eceive register, <ayment register, Balance Book, security station. :nter the amount of
cash withdrawal from the vault register.
+3
Ca"h Recei*e Procedure+
4ash is the life of a bank. 'ifferent types of from are use for cash deposits for different types of
accounts. 4ash may be received by the following ways)
4urrent of Savings account pay2in2slip
4redit voucher
'ifferent types of instrument remittance 6!!, 'O, <O etc.9 are received by respective
forms.
Bills like 5ational %ife $nsurance 4o. %td.
Share collection
'ifferent types of scheme
Ca"h pay#ent+
4ash is paid in payment counter against the following instrument)
4he"ues
4ash debit voucher
<ay2in2slip
<ay Order, '' etc.
Bank>s e1pense also paid to outsider through cash debit voucher.
Procedure+
@eceive of the che"ues with a signature behind it.
1. Scrutini/e it by an authori/ed officer.
(. Submit to computer2to2computer section for checking the available balance.
+. 4ancelled F seal up -<ay in 4ash. and cancellation through sign up.
,. Again submitted to computer section for debiting the party AC4 and seal up -<osted..
3. Send to cash counter 0 payment officer.
?. 4ash officer checks the cancellation, seal and seal up -4ash <ayment.
+?
8. :ntry the payments register.
;. !ake another signature of payee behind the che"ue and pay cash.
Ca"h Re#ittance+
@e"uisition letter, which must be authori/ed by the #anger, is sent to <rincipal Officer for 4ash
@emittance.
%n2ard Ca"h+
4ounting the cash.
<repare simple credit voucher
<repare $B4A
:ntry in the cash receipt register
Out2ard Ca"h+
4ar re"uisition 64all through phone9
!aking counter part of forwarding 6$ncluding name F specimen9 signature of authori/ed
Officer and Duard.
@emit the cash <repare simple debit voucher
Ca"h Ba!ance+
At the end of the transaction)
Sum of total received
Sum up total payment
!otal receiving O Opening balance 0 !otal payment L 4losing balance for that day F
opening balance for the ne1t day.
4heck it with computer sheet.
+8
4ounting cash.
:ntry the cash balance register.
Write cash position memo with denomination.
Po"ition of the Ca"h .epart#ent+
!he position of the cash department is very important. !he cash department should be at a safe
place. $t should be at the middle position of the branch. !he cash position of the *oreign
:1change Branch is in the front side of the branch and its safe and vault is at the behind.
Counter &i#it+
:verything has its limitation. 4ash counter of a branch also has limitation. !he casher should
take cash within the limit of his counter. $f the cash e1ceeds its counter limit, the cashier should
take the e1cess cash to safe. 4ounter limit of the *oreign :1change branch is !k. 3= 6fifty9 lac.
4au!t !i#it+
Nault is the very secret place to keep money in the bank. Esually vault is made of very hard
material like iron or steel, generally it is fireproof, damp2proof. !he vault has a fi1ed limit too.
!he limitation depends on the regular transaction of the branch. $f the amount e1ceeds its limit,
the e1tra money should be sent to the Bangladesh Bank. !he vault limit of the *oreign :1change
Branch is !k.1.3 6one and half9 crore. $f the amount e1ceeds its limitation and accident occur,
then the branch will be liable and the insurance company will not compensate for that.
Sorting and Stitching+
Sorting+
At the end of the day, the amount of cash has to be sorted out in order to identify the different
types of notes, say23==, 1==,3=,(=,1=,3 and so on. Bundred pieces of any type note create a
packet and ten packets make a bundle. $n this way, the cash is actually sorted out.
Stitching+
+;
After sorting out the cash, packets are stitched along with a slip bearing the name of the bank,
total number of notes and the signature of the cash2in2charge. !wo round seals are given at both
sides of the packet.
4au!t C!o"ing+
Before vault closing concern officer will 0
4he"ue receive, <ayment, 4ash balance, Nault register signature.
Signature of the computer sheet.
4ount physical cash.
Aeep cash in safe.
Bundle in safe.
%oose peak of the tray.
%oose cash notes F coins on the tray.
Aeep different registers.
Aeep security stationeries.
4lose Safe.
4heck the rifle F cartage.
4ount cartage F entry in register.
4lose Drill door F Nault room>s door.
+7
CHAPTER # 0/
Ana!y"i" 3 Binding
,=
/.1 Bi*e Gear" at a g!ance
6!A in millions9
(==; (==7 (=1= (=11 (=1(
!otal Asset (;+,8 ,,11= 3;7(1 8;;== 1=8((7
'eposits ((?1; +,(;= ,8,37 ?(7?3 ;++3=
$nvestments (=?18 +(717 ,+73; ?1,,= ;=37(
Shareholders>
e"uity
(8;; +?=3 ,?8? ?8,; 8718
<re2!a1 profit 1(1? 13?? 1873 (7?= (+;8
After !a1
<rofit
?,8 ;1; 1=81 (=8( 11?;
5umber of
branches
(? ++ 31 ?+ 8+
5umber of
:mployees
333 ;8; 1(77 13(1 1?(,
Tota! A""et :Taka in -i!!ion;
'00H '00= '010 '011 '01'
Tota! A""et 'H,/< //110 7H='1 <HH00 10<''=
,1
Bigure 1+ Tota! A""et
.epo"it" :Taka in -i!!ion;
'00H '00= '010 '011 '01'
.epo"it" ''81H ,/'H0 /</7= 8'=87 H,,70
,(
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
2008 2009 2010 2011 2012
Bigure '+ .epo"it"
*igure indicates that the trend of deposits is rising. $t is greater than ever in (=1(.
%n*e"t#ent" :Taka in -i!!ion;
'00H '00= '010 '011 '01'
%n*e"t#ent" '081< ,'=1= /,=7H 81//0 H07='
Bigure ,+ %n*e"t#ent"
,+
*igure shows the trend of $nvestments also growing because of the increasing trend of deposits.
After Ta6 Profit :Taka in -i!!ion;
'00H '00= '010 '011 '01'
After Ta6
Profit
8/< H1H 10<1 '0<' 118H
,,
Bigure /+ Profit after Ta6
*igure shows trend of after ta1 profit of Shahalal $slami Bank is increasing from (==; to (=11.
But in (=1( it was rapidly decrease though the deposits and investments is greater than ever in
(=1(.
/.' Pro(!e#" Binding"
As the general banking activities mainly deal with the mass people, it is very difficult to ensure
compliance and pure banking environment. But Shahalal $slami bank limited is in the level high
for providing the best customer service as it aspires to be the most admired financial institution
in the country, recogni/ed as a dynamic, innovative and client focused company offering in
array of product and services in the search for e1cellence and to cater an impressive economic
value. 5evertheless, it is facing some problems in performing general banking activities, some
of which are listed below)
a; Ter#" and condition"
$n case of account opening, terms and conditions are printed on the back of the account opening
form. $f it is so, applicants open their account being fully unaware of the same.
(; Pro(!e#" of depo"it #oney for the peop!e
!here is a provision of depositing a minimum amount of money at the time of opening account
and also maintain a minimum balance all the time. But it is not possible to follow strictly,
particularly for financially handicapped customers.
,3
c; Pro(!e# for re9uiring docu#ent"
All types of accounts re"uire some documents Sometimes proper documentation cannot be
performed due to customer e1pectation and personal relation.
d; Pro(!e#" in per"ona! re!ation"hip
%etter of thanks is to be sent to the account holder to confirm the authenticity of address of
account holder. But it is not followed all the time due to personal relations or to manage the
customer any way.
e; Concentrated "er*ice
Service is concentrated in few alternatives. 5o efforts are seen to diversify the offering.
CHAPTER # 07
Reco##endation" and Conc!u"ion
,?

7.1 Reco##endation"+
$ have observed some shortcomings regarding operational activities of the bank. On the basis of
my observation $ would like to recommend the following suggestions)
!hough the performance of general customer services is good, but their employees are
not well trained. !he department needs to recruit e1pert human resources to provide
good customer service, which will bring effectiveness of the bank>s operation.
!he employees are given deposit target, which creates e1tra pressure to them for that
reason they cannot freely provide customer service. !hey had to spend most of their time
to marketing to fill up their target. $f the bank can reduce the pressure then they could be
able to provide good service.
Shairah council should be more educative and adaptive with the present situation. So the
shairah council should be consisted of taking both $slamic knowledgeable persons as
well as modern educated persons.
4ustomer service in more respects of DB should be more developed.
Shahalal $slamic Bank ltd should be organi/ed various seminars and symposium so that
both national and international people can be more familiar.
,8
!o provide "uality service to the customer it is necessary to have a trained team of an
organi/ation or an institution. *or this reason the bank should recruit fresher, bright
energetic persons such as BBA #BA, and #B# etc.
Bank should offer more facilities to the customers such as 4redit card, Nisa card, #aster
card, A!# machine, etc.
As soon as possible the bank should start more branches in 'haka 4ity as well country.
One of the business strategies is promotion. Successful business depends on how they
can promote their products or services to the customer. $n this connection to improve the
business status bank should introduce more promotional programs.
As the clients are not in favor of introducing system, if possible the rule of introducing to
open an account should be changed. Because many face in problem to arrange an
introducer at the time of opening accounts.
*inally various media mentioning if general banking mechanism so that people can be
inspired should advise it.
7.' Conc!u"ion+
*rom the practical implementation of customer dealing producers during the whole period of my
practical orientation in Shahalal $slami Bank %td, $ have reached a firm and concrete conclusion
in a very confident way. $ believe that my reali/ation will be in harmony with most of the
banking thinkers. $t is "uite evident that to build up an effective and efficient considered as soon
as possible. Besides, every bank has to survive amidst of a large number of banks including
local and foreign. !hat>s why to keep with e1pected profit margin of the time being and for the
future every bank should try heart and soul to please the customers in a smart and trusty way.
But "uit regretful to mention that most of our bank face decreasing profit trend due to switch
over of their present customers to those foreign with higher customer service facilities. So,
timely decision for introducing sophisticated banking instruments should be taken as early as
possible. After taking effective and time defeating measures regarding efficient employees and
instruments will help the Shahalal $slami Bank %imited to reach the pinnacle of success with
high profit and productivity.
,;
Bi(!iography
1. Annual @eport, -Shahalal $slami Bank %td. (=112(=1(.
'. -Brochure., Shahalal $slami Bank %imited.
,. #d. Abul Bashar, $slami Bank Bangladesh %td.
/. Statement of Affairs +=2=,2(=1( S&$B%.
7. A.A.#. Babibur @ahman A -$slami Banking..
8. #d. Baider Ali #iah, -Band Book. $slami banking.
<. Website) 222."hah)a!a!(ank.co#.(d
H. !raining sheet, Shahalal $slami Bank %td.
,7
3=