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Report on

General Banking of Shahjalal Islamic




1.0: Introduction:
Banking sector owes a pivotal importance in the economy of any country through its vibrant
functions. This is the deep seated motivator that geared up me to join any bank for internship.
Moreover, the carry out and familiarity learned during this tenure would also attest very helpful
and alleviating in the awaiting proficient life.
This report is an upshot of my 3 months internship in Shahjalal Islamic Bank, Gulshan South
Avenue Branch,Dhaka-Bangladesh. Shahjalal Islamic Bank posses an imperative importance in
the banking sector of Bangladesh. It always remains the center of hustles in business activities. It
always endows with great covenant of rally round in terms of funds and services at all epochs of
its dynamism.
Although, a derisory period of 3 months is not enough to learn the complex operations of
Shahjalal Islamic Bank Limited yet I made industrious efforts to converse them comprehensively
in this report. Particularly, I have remunerated more accents on study of distinguishing features
and services of Shahjalal Islamic Bank Limited. I have made maximum venture to elaborate this
report with the material read, listened and observed.
I have strong belief that this report will guide and ease the readers to understand the operations
of banking system and more prominently have good knowledge about Shahjalal Islamic Bank,
one of the most faithful and leading banks in Bangladesh.
Dear readers, I hope that you will appreciate my report and sense that reading my report is not
like to waste the time in any respect.

Shahjalal Islami Bank Limited (SJIBL) commenced its commercial operation in accordance with
principle of Islamic Shariah on the 10th May 2001 under the Bank Companies Act, 1991. During
last nine years SJIBL has diversified its service coverage by opening new branches at different
strategically important locations across the country offering various service products both
investment & deposit. Islamic Banking, in essence, is not only INTEREST-FREE banking
business, it carries deal wise business product thereby generating real income and thus boosting
GDP of the economy.


Shahjalal Islami Bank Limited (SJIBL) is named from the name of a saint Hajrat Shahjalal who
dedicated his life for the cause of peace in this world and hereafter and served the humanity. The
prime objective of Shahjalal Islami Bank is to serve the people for attainment of their economic
goal and success in life here and hereafter. Shahjalal Islami Bank Limited stands not only for
material well-being but also for ethical development of its customers. The Government of
Bangladesh has licensed Shahjalal Islami Bank Ltd. (SJIBL) as a private commercial bank,
which is focused on the established and emerging markets of Bangladesh. The bank was
incorporated in Bangladesh as a public limited company on April 01, 2001 under company Act
1994, and started banking operations through the Dhaka Main Branch at 58 Dilkusha C/A,
Dhaka-1000 on May 10, 2001. The Bank is operating its business according to maintain all the
rules and regulations that the Government of Bangladesh imposed for sound performance in the
Banking Industry.
The bank follows the Companies Act, Bank Companies Act, Negotiable Instrument Act, Foreign
Exchange Regulation Act and so on which purpose to operate in business with proper manner
and provide maximum quality services to its clients and make a significant contribution to the
development of the country.

1.1.0: Tender Notice for Building data center

Shahjalal Islami Bank Limited (SJIBL) is an Industry Standard, Islamic Shariah & latest
technology based Modern Bank. To materialize the vision of the bank through introduction of
modern ITcbasedproducts, the Bank is going to implement its Core Banking solution 'Bank
Ultimus'. In this connection, the Bank is going to establish a modern Data Center at Uday Sanz
(2nd floor), 2B South Avenue Gulshan-1, Dhaka.

SJIBL hereby Invites sealed bids .for various items for its proposed Data Center from the
eligible companies. All terms and conditions are written in tender schedule. The tender schedule
will be available from Head Office, IT DIvision, 58 Dllkusha CIA (6th floor), Dhaka-1000 from
10:00 a.m. to 3:00 p.m. on all working days betWeen18th February,2010 to 28th February 2010.
The schedule will comprise Master Schedule and Annexure of different groups of items such as
Group1: Data center physical Infrastructure , Group2 : Generator, Group3 : Servers & Server
Racks, Group4 : Storage, Group5 : Network Devices & Racks , Group6 : Structured Network
Cabling , Group7 : Software , Group8 WAN Connnectivity.
The Schedule will be available on payment of Tk. 10,000.00 only (nonrefundable) for each group
through Payment Order in favor of Shahjalal Islami Bank Limited from any scheduled Bank. A
pre-bid meeting with the participating vendors will be held on 28th February 2010 3:30 PM at
the above address and the amended clauses (if any) will be provided to the participating vendors
on 2nd March 2010. The offers will be received up to 3:00 p.m. on 7th March 2010 at the above
address and the tender box will be opened at 3:30 p.m. on the same day in front of the
bidders (if any present). The bidders intending to participate more than one group have to buy
multiple schedules for each group. The Bank reserves the right to accept or reject any or all of
the offers in full or part without assigning any reason whatsoever. The Bank shall not be under
any obligation to accept the lowest quotation. Vice President IT Division

1.2.0 Background of the Project:

I have to prepare a report on the "General Banking of Shahjalal Islami Bank Ltd." for the partial
fulfillment of the internship report of Bachelor of Business Administration Program. In this
report I will include function of General Banking, which will easily understandable to the
readers. Bank is the heart of the economics and banking is the blood circulation of countrys
economic growth. Banks perform a significant role to serve the needs of the society in different
sectors, such as: capital formation, large scale of production, industrialization, growth of trade
and commerce etc. and banks are contributing a lot of aspect. Shahjalal Islami Bank Bangladesh
Limited has already emerged as one of the world wide recognized banks due to its retail product

management which are part of general banking according to the principles of Islamic Shariah.
Islamic banking is a new diminution of interest free banking where Riba or interest is strictly
prohibited. So I have tried to represent their performance and problems and prospects on the
ground of general banking.

1.3.0 Objectives/Purpose of the Study:

The main objective of the report is to fulfill the requirement of BBA Program. For this I had to
attach with an organization and I chose Shahjalal Islami Bank Bangladesh Limited (SJIBL). For
this I have some practical job related experience with my academic knowledge.
The objective of the study may be viewed as:

Broad objective

Specific objective

1.3.1: Broad Objective:

The general objective of this report is to complete the internship reportt. As per
requirement of BBA program of Cambrian College, one student needs to work in a
business organization for three months to acquire practical knowledge about actual
Business operation.

1.3.2. Specific Objective:

To present an overview of Shahjalal Islami Bank Limited.

A general description of the banking activities of Shahjalal Islami Bank Limited.

To submit a brief description about the General Banking .

To suggest remedial measurement for the improvement of the whole process of the
General Banking .

1.3.3: Scope of the Study:


The report will illustrate a basic reflection about the Shahjalal Islami Bank Limited
present condition of the bank in private banking sector, various schemes of SJIBL,
interest rate and activities.Since I am working in the Shahjalal Islami Bank Limited,
Gulshan,South-Avenue Branch, I get the opportunity to gain knowledge of different part
of banking system.

1.3.3: Limitation of the Study:

On the way of my study in Shahjalal Islami Bank Limited, I have faced the following problems;
this may be termed as the limitations of the study.
The major limitations of this study are given as follows:

There were some restrictions to have access to the information confidential by

concern authority.


I worked only on Gulshan,South-Avenue branch of Shahjalal Islami Bank

Limited, so I gather knowledge about activities of Head Office only by
reading/hearing not in practical way.


Sufficient records, publications regarding customer service were not available as

per requirement.


Three-month is not sufficient time to gain practical knowledge and prepare a



The employees of the bank are so much busy so they cannot provide me to give
information about the General Banking Department such as different types of
loans and advances.

I have no proper experience to do this kind of report. So, inexperience creates obstacle to follow
the systematic and logical research methodology

1.3.3: Justification/Rationale of the Study:

Shahjalal Islami Bank Limited (SJIBL) is a growing scheduled commercial bank of Bangladesh
Bank (Central Bank). General Banking is the most popular & common functions of any bank &
bank earns its maximum profit from the two types of services. Therefore, any lacking/limitation

may have in these sectors & bank may earn more by improving the services of the said two
On the above ground it can be justified to perform an internship report on General Banking &
Credit Management functions of a private commercial bank, if one intends or assigned by the

1.3.3: Goal of my internship:

Increase knowledge of subject matter.
Develop work skills and improving self confidence.
Increase levels of intercultural proficiency and Personal Development.
Evaluate academic experiences in a professional field setting.
Explore possible career choices and establish relationships that may result in future
Opportunity to understand the structure and operation of a working organization.
Causing interaction with a variety of individuals, systems, andorganizations.
Using a variety of learning styles and frequently challengingparticipants to use new ways of
learning and thinking

1.3.3: Methodology:
The report would be based on an exploratory research paper. Throughout the report, different
type of research method shall be used to find out proper and correct information and also provide
a good report.
For preparing this report I will basically use my experience from different department of the
Shahjalal Islami Bank Limited. And I will also use some official documents provided by the
officers. For adding more value to this report I will use some books or lecture specialized on the
banking sectors.


1.3.3: Sources of Data

Primary sources:

Observation of banking activities.

Fruitful conversation with the in-charge of the General Banking department of

Shahjalal Islami Bank Limited, Gulshan,South Avenue branch.

Experiences gained during performing duties for General Banking department.

Discussion with officials of Shahjalal Islami Bank Limited.

Secondary sources:

Annual reports of Shahjalal Islami Bank Limited.

Various documents from General Banking department.

Loans and Advances Act.

Different websites.

Internal Records.

Brochures of Shahjalal Islami Bank Limited.

Different circulars sent by Head Office and Bangladesh Bank.

Other published documents credit Scheme.

Method of Data Collection:

Data will be collected through both primary and secondary sources:
Primary Data Collection Method: The primary data will be collected through face to face
or telephonic interview with professional bankers, close meeting with high officials &
conversation with employees, etc.
Secondary Data Collection Method: The secondary data will be collected by going through
the published matters:









(www.shahjalalbank.com.bd), Company Profile, Product Brochure & Flyers, & Prior

Research Report etc. .

External Sources: Books, Magazines, Newspapers, Annual Report of Bangladesh

Bank and various web sites of islamic shariah based financial organization, etc.

1.3: Organization Profile:

1.41: Historical Back Ground of SJIBL
The Shahjalal Islami Bank Limited a Shariah Based Commercial Bank in Bangladesd was
incorporated as a public limited company as on 1 st day of April 2001 under the Companies Act.
1994. The Bank started its commercial operation on May 10, 2001. The Bank has made a
significant progress within a very short period of its existence and occupied an enviable position
among its competitors after achieving remarkable success in all areas of business operation.
With a view to materialize the dream of the people of Bangladesh for doing their banking
transactions in line with what is prescribed by Islam, a group of highly successful entrepreneurs
conceived an idea of floating a commercial bank styled as Shahjalal Islami Bank Limited
which is named after the name of the renowned saint Hajrat Shahjalal (R) who dedicated his life
for the cause of peace in this world and hereafter and for the service of humanity. The sponsors
are reputed personalities in the field of trade & commerce, industry and finance.
The Bank is being managed by a group of highly experienced professionals with diversified
experience in finance and banking. The Management of the bank constantly looks after
customers satisfaction and believes that a satisfied customer is a great Ambassador.

The bank has already ranked as one of the quality service providers & is known for its
reputation. Offers the full range of banking services for personal and corporate customers,
covering all segments of society within the framework of Banking Company Act and rules and
regulations laid down by our central bank.
All activities of the Bank including its products and services are mainly for different economic
groups of Bangladesh at home & abroad. Bangladeshi expatriates living abroad in different
countries form a strong economic group who contribute greatly towards the economic
development of the country.


1.4.1: Profile of the SJIBL

Shahjalal Bank Limited was established as a public limited company on April 01, 2001
under company act, 1994. The bank commenced its commercial operation in accordance with
Islamic Shahriah on the 10th May 2001 under the ambit of the bank companies Act, 1991. The
name of the bank was changed to Shahjalal islami bank limited i.e. of 10 th May 2004. During
Last five years SJIBL has increased its service coverage by opening new branches at different
strategically important locations across the country. In order to cover the shortfall in capital
adequacy and fulfill other requirements, the paid up capital has been increased to TK. 466.83
million by injecting TK. 236.20 million by the sponsors in 2004. the sponsors again injected
additional TK. 469.00 million by 15th May 2005 to make the sponsors contribution to capital TK.
935.83 million. The bank has the plain to go for initial public offerings (IPO) of share, which
will assist the bank to raise its paid up capital to TK. 1871.65 million. The bank was sponsored
by the group of local businessmen having exposure in RMG, insurance, electronics and
education etc. Alhaj Sajjatuz Jumma is the founder chairmen of the bank having business
experiences of more than 28 years in the field of electronics, food and education. SJIBL provides
a wide range of sharia based commercial banking services.

1.4.1: Shariah Council of the Bank:

As per Article 30 of the Artic ales of Association of the Bank, Shariah Council for the Bank has
been constituted. The Shariah council of the Bank consists of prominent Ulama, Lower and
Economist to advice and guide on the implementation of Islamic Shariah in business activities.
The council enjoys a special status in the structure of the bank and playing a vital role to make
the Bank as shariah compliant. In the year 2009, the total number of meetings of the Shariah
Council of the Bank was 4 (four) and subcommittee meeting was 02 (two).

1.4.1: Objective


From time immemorial Banks principally did the functions of moneylenders or

"Mohajans" but the functions and scope of modern banking are now-a-days very wide and
different. They accept deposits and lend money like their ancestors, nevertheless, their role as
catalytic agent of economic development encompassing wide range of services is very important.
Business commerce and industries in modern times cannot go without banks. There are people
interested to abide by the injunctions of religions in all sphere of life including economic
activities. Human being is value oriented and social science is not value-neutral. Shahjalal Islami
Bank believes in moral and material development simultaneously. "Interest" or "Usury" has not
been appreciated and accepted by "The Tawrat" of Prophet Moses, "the Bible" of Prophet Jesus
and "the Quran" of Hazrat Muhammad (sm). Efforts are there to do banking without interest
Shahjalal Islami Bank Limited avoids "interest" in all its transactions and provides all available
modern banking services to its clients and wants to contribute in both moral and material
development of human being. No sustainable material well being is possible without spiritual
development of mankind. Only material well-being should not be the objective of development.
Socio-economic justice and brotherhood can be implemented better in a God-fearing society.

1.4.1: Objectives of SJIBL:

The other objectives of Shahjalal Islami Bank include the followings:

To conduct interest-free and welfare oriented banking business based on Islamic Shariah.

To implement and materialize the economic and financial principles of Islam in the
banking arena.

To contribute in sustainable economic growth.

To help in poverty alleviation and employment generations.

To remain one of the best banks in Bangladesh in terms of profitability and assets quality.

To earn and maintain a 'Strong' CAMEL Rating.

To introduce fully automated systems through integration of information technology.

To ensure an adequate rate of return on investment.


To maintain adequate liquidity to meet maturing obligations and commitments.

To play a vital role in human development and employment generation.

To develop and retain a quality work force through an effective Human Resources
Management System.

To ensure optimum utilization of all available resources.

To pursue an effective system of management by ensuring compliance to ethical norms,

transparency and accountability at all levels.

1.4.1: Other Objectives of Shahjalal Islami Bank Include:

To establish interest-free and welfare oriented banking system.
To help in a poverty alleviation and employment generation.
To contribution on sustainable economic growth of Bangladesh.

1.5.0: Vision & Mission of SJIBL

1.5.1: Our Vision
To be the unique modern Islami Bank in Bangladesh and to make significant contribution to the
national economy and enhance customers' trust & wealth, quality investment, employees' value
and rapid growth in shareholders' equity.

1.5.2: Our Mission

To provide quality services to customers.
To set high standards of integrity.
To make quality investment.

To ensure sustainable growth in business.

To ensure maximization of Shareholders' wealth.
To extend our customers innovative services acquiring state-of-the-art technology blended with
Islamic principles.
To ensure human resource development to meet the challenges of the time.

1.5.3: Our Strategies

# To strive for customers best satisfaction & earn their confidence.
# To manage & operate the Bank in the most effective manner.
# To identify customers needs & monitor their perception towards meeting those requirements.
# To review & updates policies, procedures & practices to enhance the ability to extend better
services to the customers.
# To train & develop all employees & provide them adequate resources so that the customers
needs are reasonably addressed.

# To promote organizational efficiency by communicating company plans, polices & procedures

openly to the employees in a timely fashion.
# To cultivate a congenial working environment.
# To diversify portfolio both the retail & wholesale markets.

1.5.4: Our Motto


Committed to Cordial Service

1.6.0: Organ gram of SJIBL

Managing Director (MD)

Deputy Managing Director

Senior Executive Vice President

Executive Vice President (EVP)

Senior Vice President (SVP)

Vice President (VP)

Senior Assistant Vice President

First Assistant Vice President

Assistant Vice President (AVP)

Junior Assistant Vice President

Senior Executive Officer (SEO)

Executive Officer (EO)

Senior Officer (SO)

First Executive Officer (FEO)


Junior Executive Officer (JEO)

Junior Officer (JO)

Assistant Executive Officer (AEO)

Trainee Assistant Officer


Senior Officer (SO)


Junior Officer (JO)

Trainee Assistant Officer

1.7.0: Business Environment

During 2010, Bangladesh witnessed higher inflation that affected life of common people,
labor unrest in garments sector- the highest contributor in export sector affected economic
activities and business operations.
Higher import cost of commodity prices, price hike in international oil market as well as money
and credit growth resulted in higher inflation. As a result, the economy of the country showed
every sign of recession. The efficient workforce of the Bank and the prudent management
developed a seamless teamwork which pushed the Bank through all the shadows of uncertainty
towards the light of sources. Despite numerous adversities, closed the balance sheet of the Bank
with an enormous per-tax profit of TK. 1,795 million with excellent growth rate of 54.44%.
while the whole financial sector faced a slowdown. This credit worthy achievement has been
possible due to our professional smoothness and confidence.

1.8.0: Focus 2011

This year, the bank would also open its first overseas exchange house in New York, USA to
facilitate the in-flow of remittance.
"We are expecting a massive increase in our deposit and investment in the year 2011", Mr
Muhammad Ali said.
"This would be followed by a substantial growth in our business performance over the last
decade", he added.
"Our total amount of deposit, at the end of 2010, stood at Tk 47.46 billion from Tk. 1.40 billion
in 2001 while the total amount of investment rose to Tk. 43.96 billion from Tk. 220 million at the
very beginning", Mr Ali said.
The annual general meeting of the bank has already approved a 25 per cent stock dividend for
the year 2010, rising from 22 per cent in 2009 and 20 per cent in the preceding annum, the bank
officials said.
"The consistent increase in the bank's stock dividend showcases our constant growth in terms of
business performance over the years",
The bank's total paid up capital, at the end of 2010, stood at Tk. 2.74 billion, while the amount is
expected to reach Tk. 3.43 billion this year after disbursing the dividend, officials informed.
"A major focus of our investment this year would in the production of salt as per Bangladesh
Bank's thrust on providing agricultural loan, while small and medium scale businesses like light
engineering sector would also receive the priority", the SJIBL Managing Director said.
"We are planning to disburse agricultural credit amounting to Tk. one billion for salt production
this year for which the main salt growing coastal regions of Chittagong and Cox's Bazar would
be specially targeted", he added.
The bank is also targeting a solid increase in its import and export business in 2011 as the

amount of import is expected to reach Tk. 55 billion during the ongoing year from Tk. 39.54
billion in 2010 while the export is expected to grow by 44.39 per cent to reach Tk. 42.50 billion.
"So far, we are quite on track to reach our target for the year", the SJIBL MD said, "as until
April, we have attained 93 percent of our targeted month wise core deposit".
"At the same time, our month wise net investment is 96 per cent of what we have targeted while
the figure for import and export stood at 97 and 89 per cent of our target", he added.
According to official figures, the Tier-1 capital of the bank as on April 30, 2011 stood at Tk. 5.16
billion while the total equity amounted to Tk. 5.99 billion.
The bank will also strengthen its IT base to increase the productivity and operational efficiency,
the MD said.

1.9.0: Capital Market Services Division

The capital market showed notable progress during 2009. The monthly average price index at the
Dhaka Stock Exchange (DSE) showed an upward trend along with substantial improvement of
turnover value. The monthly average of all share price index (DSI) DSEG, and DSE20 increased
buy 55.1 percent, 49.6 percent, and 39.6 percent respectively in June 2009 over June 2008. The
daily average turnover stood at Tk. 2.3 billion in the year 2009 against Tk. 0.7 billion in the year
2008 showing a healthy growth of 223.4 percent. The increased market turnover in 2009 was
largely contributed by trading of shares of banks, insurance companies, mutual funds, and power
sector companies. At the end of 2009, market capitalization at DSE was 17.8 percent of the
countrys GDP compared with 16.1 percent in June 2008. However, volatility in the stock market
seems to have magnified recently, which needs careful investigation and monitoring by the stock
market regulators.
Shahjalal Islami Bank commenced its Brokerage House operation in the year 2009 through a
separate division named Capital Market Service Division (CMSD). CMSD provides BO

Account facility and margin facility to its customers to invest in the secondary markets.
Diversified products with different category of investment ceiling and other value added services
are also available for customers. The customers were also provided with assisted services
facilities on the basis of published information and accounts. The division managed portfolio
value of more than 833 million under margin accounts. As a result, profitability of CMSD shown
significant positive trend during 2009. Divisional contribution was 2.21% percent to total
operating profit before Provision and taxes of the Bank. The Bank has established a well
decorated and highly technology based trading facilities for the connivance of the customers.

1.10.0: The Organizational Structure:

The objective of the organizational structure and corporate governance of Shahjalal
Islami Bank Limited is to establish a strong, customer-oriented and transparent management.
SJIBL was structured with four corporate bodies, which are-

1. Board of Directors.
2. Board Committee.
3. Executive Committee.
4. Policy Committee.

1.10.1: The functions of the corporate management are: -


Board of Directors: The Board of Directors consists of 24 members. The Board of

Directors is the apex or zenith body of the bank.
Board Committees: The Board of Directors who also decides on the composition of
each committee determines the Board responsibility of each committee.
Executive Committee: All routine matters beyond delegated powers of
management are decided upon by or routed through the Executive Committee,
subject to ratification by the Board of Directors.
Policy Committee: All matters relating to the principles, policies, rules and
regulation, ethics etc. for operation and management of the Bank are recommended
by the Committee to the Board of Directors.

2.0.0:Management of SJIBL:
The Board of Directors consists of eminent personalities from commerce and industry of the
country. Mr. Sajjatuz Jumma, the founder Chairman of the Board of Directors, is a
businessman besides being an eminent personality of the country.

The Bank is manned and managed by highly qualified and efficient professionals. The Managing
Director of the Bank is Mr. Muhammad Ali who has rich experience of managing both the
nationalized and the private sector banks as Managing Director.




Board of Directors who also decides the composition of each committee determines the
responsibilities of each committee. EXECUTIVES COMMITTEES



SJIBL: All routine matters

beyond delegated powers of management are decided by or routed through the Executives
Committee, subject to rectification by the Board of Directors.

2.0.0:Organization Chart of SJIBL


Board of Directors

Managing Director

Deputy Managing

Deputy Managing
Executive Vice President/
Company Secretary

Senior Vice President

Senior Vice President

Vice President
Senior Asst. Vice
Asst. Vice President


Senior Vice President

First Asst Vice President

Executive Officer
Senior Officer
Trainee Senior Officer
Trainee Officer

2.2.0 Board of Directors

Vice Chairman

GSD General Service

CAD Central Account
ASI Audit and Inspect
Central Bank
D&M Developing and


Alhaj Mohammed Solaiman

Alhaj Md. Abdul Barek



Vice Chairman

Alhaj Mohammed Younus




Alhaj Sajjatuz Jumma

Alhaj Anwer Hossain Khan



Alhaj Tofazzal Hossain

Alhaj Md. Sanaullah Shahid


Alhaj Mohammed Farooq


Alhaj Abdul Halim



Alhaj Mohammed Hasan


Alhaj Mohiuddin Ahmed



Alhaj Mohammed Faruque


Alhaj Shams Uddin Khan


Alhaj Syed Nurul Arefeen


Alhaj Akkas Uddin Mollah


Alhaj Khandoker Sakib Ahmed

Alhaj Md. Towhidur Rahman

Alhaj A.K. Azad

Independent Director
Managing Director
Company Secretary

Alhaj Nazmul Islam Nuru

Md. Abdur Rahman Sarker
Alhaj Md. Abdul Ma
Md. Emran Hossain

2.3.0: Branch Expansion:

The Bank commenced its business on May 10, 2001 by opening its 1st branch, i.e.
Dhaka Main Branch at 58, Dilkusha, Dhaka obtaining the license from Bangladesh Bank, the
central bank of Bangladesh. Its corporate Head Office is situated at 10, Dilkusha Commercial
Area, Jiban Bima Bhaban, and Dhaka - 1000. The Bank opened 2 (Two) branches in 2001, 6
(Six) branches in 2002, 2 (Two) branches in 2004, 2 (Two) branches in 2005, 4 (Four) branches
in 2006, 5 (Five) branches in 2007 & 2008, 7 (Seven) branches in 2009. Up to December 31,
2010 SJIBL established 63 branches to all over the country to give a cordial service to their

Zone-wise number of Branches


Number of Branch
Total Branch 63

2.4.0: Location and Branches (Dhaka

2. Baipail (Dhaka EPZ) Branch Mr.
Port, 398, Ashkona
Bazar Road
Khondoker Shah-Noor Islam Jr. Assistant Vice
(haji Camp), Dhaka Phone: Direct:
8956762, 01715-499229 Fax:
d Opened on: 16 Sep, 2009

Swapneel Tower, Baipail,

Ashulia, Dhaka EPZ, Savar, Dhaka
Phone: 7790517, 7788292 Fax:

Opened on: 26 Dec, 2005

3. Banani Branch Mr. Md. Altaf Hossain

4. Bangshal Branch Mr. Shahabuddin

Faruq Rupayan
Tower (2nd Flr), 32, Kemal Ataturk
Avenur, Banani, Dhaka 1212
Phone: 8822801, 8828740 Fax:

Executive Vice President

Bhuiyan Vice President

Bangshal, Dhaka-1100 Phone: 029552922, 7172901, 7112622 Fax:
bd Opened on: 7 Dec, 2005

Opened on: 8 Oct, 2006

5. Barachowna Branch Mr. Abdul Karim Meer

Barachowna Bazar
PS:Shakhipur Dist.: Tangail
m.bd Opened on: 19 Nov, 2009
Sr. Executive Officer

7. Bhaluka SME/Agri Branch Mr. Mohammad

Baruakhali High
School Market (1st Floor), P.S.:
Nababganj, P.O.: Baruakhali,
Dhaka Phone: 03894552598,
01712271777 Fax: 03894552598
Opened on: 19 Jul, 2009
8. Bijoy Nogar Branch Mr. Md. Asadul Islam
Anisur Rahman JAVP

Abdullah Al Mamun Jr. Assistant Vice President

Khan Sr. Assistant Vice President MTC Ally's

Masud Market, Holding No. 58,
Center, 40, Bijoy Nogar, DhakaBhaluka, Mymensingh Phone: 880
1000 Phone: 9335771, 9344867
Fax: 88-02-9344867
Opened on: 7 Aug, 2008
Opened on: 8 Nov, 2010

Mohammadpur Housing Estate,

Mirpur Road, Dhaka Phone:
Direct: 9136197,
PABX:9136291,8150232 Fax:
m.bd Opened on: 14 May, 2009

10. Dhaka Main Branch Mr. Md. Shafiul Azam

58 Dilkusha
C/A, Dhaka-1000 Phone: 029570795-8, 9570805 Fax: 029556011
Sr. Executive Vice President

Opened on: 10 May, 2001

11. Dhanmondi Branch Mr. Md. Shahjahan

12. Eskaton Branch Mr. Md. Aslamul Hoq

Plaza (1st Floor), House 07,
Road 04, Dhanmondi R/A, Dhaka
1205 Phone: 9665766,
9665767, 8620592, 8621624 Fax:

Vice President

Shiraj Sr. Executive Vice President

Opened on: 21 Jan, 2002

13. Faridpur Branch Mr. AHM Mostofa Kamal

110, Thana
Road (2nd & 3rd Floor), Faridpur
Phone: 0631-67156, PABX: 063167155 Fax: 0631-67154
First Assistant Vice President

Eskaton Fantasia (2nd

Floor), Holding No. 122 & 123,
New Eskaton, Dhaka Phone:
9355681 Fax: 9355672
Opened on: 15 Nov, 2010

14. Foreign Exchange Branch Mr. Abdul Aziz

Modern Mansion
(1st floor), 53 Motijheel C/A,
Dhaka-1000 Phone: 02-71603323, 7160330 Fax: 02-7160331
Executive Vice President

Opened on: 11 Mar, 2003

Opened on: 23 Dec, 2010

15. Gulshan Branch Mr. Md. Motaleb Hossain

16. Gulshan South Avenue Mr. Mustaque

40/5, North
Avenue, Gulshan-2, Dhaka-1212
Phone: 02-9890520-1, 9893454,
9890322 Fax: 02-9893008

Ahmed Executive Vice President

Senior Vice President

Opened on: 1 Aug, 2002

Sanz, Plot No. SE (A),2/B Gulshan
South Avenue, Gulshan-1, Dhaka
Phone: +8802-8819029 PABX:
Opened on: 20 Jun, 2010

17. Joydevpur Chowrasta Branch Mr. Md.

Masum Basunia First Assistant Vice President

18. Joypara Branch Mr. Mizanur Rahman First

Assistant Vice President Monowara

Khaleque Complex (1st floor),
Mansion (1st Floor), Joypara,
Joydevpur Chowrasta, Gazipur
Dohar, Dhaka Phone: 0389Phone: 02-9262393-4 Fax: 024680014 Fax: 0389-4680014
Opened on: 20 Dec, 2006

19. Kawran Bazar Branch Mr. Syed Showket

20. Keranigonj Branch Mr. Muhammad Amir

T K Bhaban,
13 Kazi Nazrul Islam Avenue,
Kawran Bazar, Dhaka Phone: 029114044 , 9122396 Fax: 029126604

Hossain Sarker Assistant Vice President

Rana Executive Vice President

Opened on: 26 Sep, 2004

Plaza (1st Floor), Shohid Nogar,
Karanigonj, Dhaka Phone:
7762291, 7762293-4 Fax: 88-027762292
Opened on: 17 Sep, 2008

Jalpotti Road, Vill-Choto

Madhabdi,Pauroshava & P.S.Madhabdi,Dist: Norsingdi Phone:
Direct: 9446017, PABX: 9446166
Fax: 9446167
m.bd Opened on: 30 Jul, 2009

22. Mawna Branch Mr. Md. Nazmul Haque

23. Mirpur Branch Mr. Md. Khalid Hussain

24. Mitford Branch Mr. Mahmud Hussain Sr.

230, Senpara Parbata,

Mirpur-10, Dhaka Phone:
9012962-3, 9012045 Fax: 88-029012857

Vice President

Vice President

N.S. Bhaban (1st

Floor), Mawna Chowrasta,
Sreepur, Gazipur Phone: PABX:
06825-52906, Direct: 0682552907 Fax: 06825-52908
Senior Executive Officer

Opened on: 9 Dec, 2010

173-174, Mitford Road,

Dhaka-1100 Phone: 02-7315533 ,
7313788 Fax: 02-7315534
Opened on: 9 Sep, 2001

Opened on: 6 Nov, 2007

25. Motijheel Branch Mr. S. M. Jahangir

Rubel Alam Khan Assistant Vice Persident

Chamber, 99, Motijheel C/A,
Dhaka 1000 Phone: 9563156,
9562763, 9564029 Fax: 88-029564029

Noor Fatema Tower (1st Floor),

25, Swadeshi Bazar, Mymensingh
Phone: 091-64397 Fax: 09162370
om.bd Opened on: 27 Nov, 2008

Hussain Executive Vice President

ENA Tower, Di-Olie (1st

floor), 57/3, 57/4, Lake Circus
Road, Kolabagan, Dhanmondi,
Dhaka-1212 Phone: Direct:
9137723, PABX:9125754,9133746
Fax: 9133745
m.bd Opened on: 13 May, 2009

27. Narayanganj Branch Mr. S. M. Rashedul

Tower, 56/1, S.M. Maleh Road,
Narayangonj Phone: 7635172 Fax:
Karim Sr. Assistant Vice President

Opened on: 28 Dec, 2005

Vice President

29. Savar Branch Mr. Mohammad Towfiqul

30. Shafipur Branch Mr. Md. Arif Uddin Senior

Super Market, 71/1 and 72/1,
Bazar Road, Savar, Dhaka Phone:
7742894-5 Fax: 88-02-7742893

Executive Officer

Islam Sr. Assistant Vice President

Opened on: 13 Dec, 2007

A-62 Haji Osman

Market, Shafipur Bazar, Kaliakair,
Gazipur Phone: 06822-51864,
06822-51865, 06822-51866 Fax:

31. Shatmasjid Road Branch Mrs. Midhat Ara

32. Tangail Branch Mr. Md. Abdul Khaleque

Sr. Vice President

Assistant Vice President

Khuda Buksh
Foundation (1st Flr.), Road No.
11/A, House No. 99, Dhanmondi,
Dhaka 1209 Phone: 9129848,
9127931, 9137780 Fax: 88-029129848

Nirala Complex
(2nd & 3rd Floor), Par Dihgulia,
Opened on: 27 Dec, 2010

Opened on: 7 Sep, 2006

33. Tongi Agri/SME Branch Md. Arifur Rahman

34. Uttara Branch Mr. A.K.M. Rabiul Islam

Rupali Plaza,
Holding No. 24, Anarkoli Road,
Tongi Bazar, Tongi, Gazipur Phone:
98173913, PABX: 9817391-2 Fax:

Fisrt Assistant Vice President

First Assistant Vice President

on: Branch
24 Oct, 2010
35. Vatara
Mr. M. Imam Hossain Gazi Sr.

Complex, House # 12, Road #
14/C, Sector # 4, Uttara Model
Town, Dhaka-1230. Phone: 028932084,8923586 Fax: 028923586

311, Progoti
Sarani, Nayanogor, Baridhara,
Badda, Dhaka Phone: 88-028412672, 88-02-8412649 Fax: 8802-8840188
Assistant Vice President

Opened on: 14 Aug, 2008

Chittagong Zone(13 Branch)

1.Agrabad Branch Mr. Md. Nasir Uddin Executive

2. Ashugonj Branch Mr. Mohammed Ramjan Ali First

104, Agrabad C/A,

Chittagong Phone: 031-728294 ,
813052-3 Fax: 031-716960

Assistant Vice President

Vice President

Opened on: 30 Mar, 2002

Doctor Plaza, 1st

Floor, Kachari Road, Ashuganj,
Brahman Baria Phone: 01714-097500
Opened on: 16 Nov, 2009

3. Bandartila Branch Mr. Md. Nawshad Abbas Sr.

4. Bramonbaria Branch Mr. Md. Abdur Rob Sr.

Zalal Plaza (2nd

Floor), 311 Bondor Tila, Soilor's Clolony,
Chittagong Phone: Direct: 031-741174,
PABX: 031-741214, 031-741203 Fax:

Assistant Vice President

Assistant Vice President

City Center Shopping

Complex (3rd Floor), 1072 Court Road,
Opened on: 22 Dec, 2010

Opened on: 28 Dec, 2010

5. Chawkbazar Branch Mr. Rashed Sarwar Vice

6. Chowmuhani Branch Mr. Md. Jashim Uddin

2 Chawkbazar, Kapashgola
Road, Chittagong Phone: 01711-393124

Executive Officer


Opened on: 21 Dec, 2009

Ali Bhaban (2nd & 3rd

Floor), 1523 Karimpur Road,
Chowmuhani, Begumganj, Noakhali
Opened on: 29 Dec, 2010

7. Comilla Branch Mr. Mokammel Hossain First

8. Cox's Bazar Branch Mr. Mohammad Ehsan FAVP

A. B. Super Market (1st Floor), 145
Complex(1st & 2nd Floor), Monohorpur,
Laldighirpar, Cox's Bazar Phone: 01819Chowmuhoni, Laksam Road, Comilla
Phone: Direct: 081-61655, PABX: 081sblcox'sbazar@shahjalalbank.com.bd
61645 Fax: 081-61645 www.AssignmentPoint.com
Opened on: 29 Dec, 2009
Assistant Vice President

Opened on: 3 Nov, 2009

9. Jubilee Road Branch Mr. A. N. M. Jahangir

10. Khatunganj Branch Mr. Md. Habibul Islam Sr. Vice

Haque Tower (1st

floor), 610/11 Jubilee Road, Chittagong
Phone: 031-2853151-2 Fax: 0312853153


Executive Vice President

94-95, Khatunganj, Chittagong

Phone: 031-637256 , 637275 Fax: 031637281
Opened on: 9 Jul, 2002

Opened on: 24 Dec, 2006

11. Muradpur Branch Mr. Md. Masudul Hoque Jr.

12. Nazirhat Branch Mr. Mohammad Hannan Jr.

85, Muradpur,
Chittagong Phone: 031-2552589-91
Fax: 031-2552592

Assistant Vice President

Assistant Vice President

B. A. Center (1st
floor), Nazirhat, Fatikchhari,
Chittagong Phone: 01819-649438

Opened on: 18 Dec, 2007

Opened on: 21 Dec, 2009

13. Ramgonj Branch Mr. Md. Bellal Hossain Senior

85 Islam Plaza (1st floor),

Sonapur Bazar, Ramgonj, Laksmipur
Phone: 0382-475405, 0382-475079
Fax: 0382-475072
Executive Officer

Sylhet Zone(5 Branch)

1. Beanibazar Branch Mr. Mohammad Modabbir

2. Dargah Gate Branch Mr. Md. Khurshid Alam

Centre Bhaban 1st floor, Beanibazar
Market, Beanibazar, Sylhet Phone:
03799-287242 Fax: 08223-87870

First Assistant Vice President

Ahmed Junior Assistant Vice President

Opened on: 14 Mar, 2002

Amberkhana, Dargah Gate, Airport
Road, Sylhet Phone: 0821-814222
Fax: 0821-814277
Opened on: 19 Dec, 2004


3. Goalabazar Branch Wohiduz Zaman

4. Moulvibazar Branch Mr. Selimuzzaman

Mansion(1st Floor), JL No: 78, Goala
Bazar, P.O.: Goala Bazar, P.S.: Osmani
Nagor, Sylhet Phone: Direct: 0824256307, PABX: 08242-56304 Fax:

Chowdhury First Assistant Vice President

Chowdhury Senior Executive Officer

286/300 Ahmed Mansion (1st floor),

Saifur Rahman Road, Moulvibazar3200 Phone: 0861-62874-6
Opened on: 29 Nov, 2006

5. Sylhet Branch Mr. Md. Tufael Yakub Vice

Al-Falah Tower (1st floor),

Dhupadighir Purbopar, Kotowali,
Sylhet Phone: 0821-725115 Fax:

Opened on: 12 May, 2002

Khulna Zone( 3 Branch)

1. Jessore Branch Mr. Md. Nazrul Islam Vice

2. Kaligonj Branch Mr. ABM Ahasanul Kabir SEO

Sadhinata Bhaban (1st Floor)

Holding no: 91, M.K. Road. Kotawaly,

Munsur Plaza (1st floor), 162

Madhugonj Bazar, Kaligonj, Jhenaidah
Phone: 0452356677, 01915-903109
Fax: 0452356678


Phone: 0421-64641
Opened on: 8 Oct, 2008

Opened on: 27 Dec, 2009

3. Khulna Branch Mr. Mohammad Anas Assistant

72 KDA Avenue, Khulna

Phone: 041-2830458-60 Fax: 0412830457
Vice President

Opened on: 6 Dec, 2007

Rajshahi Zone (6 Branch)

1. Bogra Branch Mr. Md. Nurul Amin Sarker Assistant

Nurul Haque Tower(1st

Floor), 357/395, Boro Gola Mor, Bogra
Phone: Direct: 051-67206, PABX: 05167646, 67656 Fax: 051-67205
Vice President

2. Dinajpur Branch
Jr.Assistant Vice President
Holding No. 887/848, Gonesh Tola,
Kotoali, Dinajpur
open on: 14 Dec, 2010

Opened on: 1 Oct, 2009


3. Naogaon Branch Md. Golam Mostafa Assistant Vice

4. Rajshahi Branch Mr. Md. Abdulla Al Mahmud

Holding# 3366 (1st Floor),

Naogaon Main Road,Chawkdev, Woard
no.: 3, , Naogaon Phone: Direct: 074161496 Fax: 0741-61496

Siddiqui Sr. Assistant Vice President


Opened on: 1 Oct, 2009

Habib Plaza
(1st Floor), Holding # 111 Shaheb
Bazar, Zero Point, Rajshahi Phone:
0721-772401 Fax: 0721-772427
Opened on: 5 Nov, 2008

5. Rangpur Branch Mr. Md. Abu Sayeed First Assistant

6. Saidpur Branch Mr. G.M. Kamrul Hasan Junior

M.H. Rashid Shopping

Complex (2nd & 3rd Floor), 88 Station
Road, Rangpur Phone: 052163012

Assistant Vice President

Vice President

Opened on: 15 Dec, 2010

Saidpur Plaza(1st
Floor), Sere Bangla Road Saidpur,
Nilphamari Phone: 0552673025 Fax:
Opened on: 11 Aug, 2008

Barisal Zone( 1 Branch)


Khepupara Branch Mr. Abdur Razzak Matubber

116(Ground Floor), Oil Mill

Road,Khepupara, Kolapara,Patuakhali
Phone: Direct: 04425-56507, PABX:
04425-56506 Fax: 04425-56508

Opened on: 8 Nov, 2009


2.5.0: SJIBL ATM Location

Shahjalal Islami Bank Limited is providing ATM services to its valuable cardholders 24/7 for
365 days. At present the Bank has 13 ATM's of its own and also providing ATM services to its
customers through shared ATM with Q-Cash member Banks, DBBL, Brac Bank and other VISA
Shahjalal Islami Bank Limited ATM Location is given below:
Head Office ATM Booth
UDAY SANZ, 2/B Gulshan South Avenue, Gulshan-1, Dhaka-1212
Dhaka Main ATM Booth
58 Dilkusha C/A, Dhaka - 1000.
Motijheel ATM Booth
Karim Chamber, 99, Motijheel C/A, Dhaka-1000
Dhanmondi ATM Booth
Momtaz Plaza, House-07, Road-04, Dhanmondi R/A, Dhaka-1205
Dhanmondi (Anwer Khan Modern Hospital)
House# 17, Road# 08, Dhanmondi R/A, Dhaka-1205.
Gulshan ATM Booth
40/5, North Avenue, Gulshan-2, Dhaka-1212
Chawkbazar (Branch ATM)
2 Chawkbazar, Kapashgola Road, Chittagong
Agrabad (Branch ATM)
104 Agrabad C/A, Chittagong
Sylhet ATM Booth
Sylhet Station Club Building, Shahjalal Road, Bandar, Sylhet
Sylhet (Branch ATM)
Al-Falah Tower(1st floor), Dhupadighir puropar, Kotowali, Sylhet,
Sylhet (Branch ATM)
397, Amberkhna, Dargah Gate, Airport Road,Kotowali, Sylhet.

Khulna ATM Booth

Moon Mansion, Moylapota More, 10 KDA Avenue, Khulna
Jessore (Branch ATM)
Sadhinata Bhaban (1st Floor) Holding no: 91, M.K. Road. Kotawaly, Jessore
Bogra (Branch ATM)
Nurul Hoque Tower, 357/395 Boro Gola Mor, Bogra
Q-Cash Member Banks are:
All the Q-Cash member banks can make ATM transactions within their network at very
nominal fees.
Sl. Bank Name
01. Basic Bank Limited
02. Eastern Bank Limited
03. ICB Islamic Bank Limited
04. IFIC Bank Limited
05. Jamuna Bank Limited
06. Janata Bank Limited
07. Mercantile Bank Limited
08. Mutual Trust Bank Limited
09. National Bank Limited
10. NCC Bank Limited
11. Pubali Bank Limited
12. Shahjalal Islami Bank Limited
13. Social Islami Bank Limited
14. Sonali Bank Limited
15. Standard Bank Limited
16. State Bank of India
17. The City Bank Limited
18. Trust Bank Limited

19. Uttara Bank Limited

20. Bank Asia Limited
21. EXIM Bank
22. State Bank of India
ATM Transaction Charges:

ATM Outlet

Charges per transaction



Q-Cash Network


Dutch Bangla Bank Ltd.


OMNIBUS (Brac bank Ltd.)





2.6.0: Corporate Information

Name of the Compan
Legal Form

Shahjalal Islami Bank Limited

A public limited company incorporated in Bangladesh on
1st April 2001 under the companies Act 1994 and listed in
Dhaka Stock Exchange Limited and Chittagong Stock

Commencement of Business
Head Office

Exchange Limited.
10th May 2001
Uday Sanz, Plot No. SE (A)
2/B Gulshan South Avenue,

Telephone No.
Fax No.
Managing Director

Gulshan 1, Dhaka-1212.
Alhaj Mohammed Solaiman
Md. Abdur Rahman Sarker
M/S. Syful Shamsul Alam & Co.
Chartered Accountants
Paramount Heights
65/2/1 Box Culvert Road (level-6)
Purana Paltan, Dhaka-1000

Tax Advisor

Phone: 88-02-9555915, 9560332

M/S K.M Hasan & Co.
Chartered Accountants
87, New Eskaton Road
Phone: 88-02-9351457, 9351564

Legal Advisor

Hasan & Associates


Chamber of Commerce Building

(6th floor), 65-66 Motijheel C/A, Dhaka

No. of Branches
No. of ATM Booth
No. of SME Centers
Off-Shore banking Unit
No. of Employees
Stock Summary:
Authorized Capital
Paid up Capital
Face Value per Share


Tk. 6,000 million

Tk. 3425.12 million
Tk. 10

: Services of SJIBL

Islamic banking has been defined as banking in consonance with the ethos and value system of
Islam and governed, in addition to the conventional good governance and risk management rules,
by the principles laid down by Islamic Shariah. Interest free banking is a narrow concept
denoting a number of banking instruments or operations, which avoid interest. Islamic banking,
the more general term is expected not only to avoid interest-based transactions, prohibited in the
Islamic Shariah, but also to avoid unethical practices and participate actively in achieving the
goals and objectives of an Islamic economy.

2.7.1: Deposit products

Cheque-based Account
Al-Wadiah Current Deposits
Mudaraba Saving Deposits
Mudaraba Short Notice Deposit

Non-cheque-based Account
Mudaraba Term Deposits
Mudaraba Double/Triple Benefit Scheme
Mudaraba Monthly Deposit Scheme ( 5, 8 , 10 years )
Mudaraba Lakhapoti Deposit Scheme (3, 5, 8, 10 years)
Mudaraba Millionaire Deposit Scheme (12, 15, 25 years terms)
Mudaraba Hajj Deposit Scheme ( 1 to 25 years terms )
Mudaraba Housing Deposit Scheme
Mudaraba Cash waqf Deposit Scheme
Monthly Income
Mudaraba marriage Deposit Scheme
Mudaraba Education Deposit scheme
Mudaraba mohor Deposit Scheme
Mudaraba Special Term Deposit

2.7.2: Investment Products

Profit applies monthly
Calculations based on simple method
Calculation mode on annuity method
Markup system

Total profit is unknown

Profit kept in profit Receivable A/C (Liability)
Profit realized from profit Receivable A/C (Liability)
Rebate allowed
Compensation may be changed
Profit may transfer to profit Suspense A/C
Different Modes

HPSM- (staff)
Inland Doc. Bills Purchased
Foreign Doc. Bills Purchased

2.8.0: Performance of SJIBL

Operational Performance
During 2010 the bank through its 63 branches mobilized deposit of Tk.47,459 million
and deployed Tk.43,958 million in investment. Total income of the bank was Tk.7,117
million and total expenditure stood at Tk. 5,076 million, resulting in operating profit of


Tk.2,041 million. The Bank handled total Inward Foreign Remittance of Tk.10,473
million in the year 2010.

Total operating performance at a glanceParticulars

Amount (in millions)

Total Deposit


Total Investment


Total Income


Total Expenditure


Total Operating Profit


Total Inward Foreign Exchange Remittance


2.8.1: Capital Adequacy

Total equity of the bank as on 31.12.2009 was Tk. 4,069.09 million and the total
equity stood at tk.5,429.97 million on 31.12.2010, which was13.98% of the risk weighted Assets
as against the requirement of 10.00%.
The core capital was 12.04% of Risk weighted Assets as on 31 st December 2010 as against
requirement of 5%.


2.8.2: Deposit:
Deposit is the life- blood of a bank. Bank has given utmost importance in
mobilization of deposit introducing a few popular and innovative schemes. The mobilized
deposits were ploughed back in economic activities through profitable and safe investments:
Monthly Deposit Scheme (MDS)
Millionaire Scheme (MS)
Monthly Income Scheme (MIS)
Double Benefit Scheme

Tripol Benefit Scheme

Hajj Plan Scheme
Housing Deposit Scheme
Cash Waqf Deposit Scheme
Lakhopati Deposit Scheme
Mohor Deposit Scheme
Marriage Deposit Scheme
Education Deposit Scheme
Small Business Deposit Scheme
Special Term Deposit Scheme
Total Deposit (as on 31.12.2010) ---------------------------------- Tk.47,459.23 million
Total Deposit (as on 31.12.2009) ---------------------------------- Tk. 34,279.74 million
So, growth rate is 38.45%

The deposit mix of the bank as on 31.12.2010 was as below:

Sl. No.

Nature of Deposit

Taka in Million

Percentage of
total deposit

Al-Wadia Current Account







Mudaraba Savings
Mudaraba Short Notice
Mudaraba Term Deposit



Deposit in Scheme



Other Deposit
Total Deposit


2.8.3: Operating Result

A) Income:
Investment Income: Total investment income of the bank as at 31 st December 2010
was Tk.5,939.90 million as against Tk. 4,428.89

million of the preceding year

registering 34.12% growth over last year, which was 83.46% of the total income
against 83.80% of 2009.
Non- Investment Income: Total Non investment income of the bank as at 31st
December 2010 was Tk. 1,177.14 million as against Tk. 856.49 million of the
preceding year registering 37.44% growth over last year, which was 16.54% of the
total income compared to 16.20% of 2009.

B) Expenditure:
Profit on Deposits: Bank distributed profit of Tk. 4,200.28.40million among the
Mudaraba Depositors in the year 2010 against Tk. 2,962.40 million in the year 2009
which is 70.71% of the Investment income earned from deployment fund of which
was 66.89% in 2009. Deposit expense was 82.75% of total expenditure in 2010
against 85.23% of 2009.

Operating Expenses: Total operating expenses as on 31.12.2010 was Tk. 875.60

million as against Tk 513.19 million of 2009, Which was 17.25% of the total
expenditure of the year 2010 against 14.77% of 2009.

Operating profit: During 2010, the bank earned an amount of Tk. 7,117.04 million
and spent an amount of Tk. 5,075.88 million, resulting a total operating profit of Tk.
2,041.16 million which increased by Tk. 231.36 million, i.e 12.78%over 2009. From
the operating profit Tk. 205.00 million was kept as provision for investment, Tk.
40.00 million provision kept for off-balance sheets, Tk. 1.00 million provision kept
for other assets and then profit before tax stood at Tk. 1,795.16 million and deducting
income taxes of Tk. 724.60 million Net Profit after taxation stood at Tk. 1,070.56
million, net profit of 2010 increased by Tk. 252.86 million, i.e. 30.92% from Tk.

817.71 million of 2009. As appropriation of net profit Tk. 359.03 million transferred
to statutory reserve as per bank company Act. 1991 and Remaining Tk. 711.53
million was transferred to retained earnings.

summary of operating result of the bank as on

December 2010 vis--vis the position of December 2009 is
shown below:
(Amount in Million Taka)




Total Income



Less: Total Expenditure



Net profit before provision & Taxation











Less: Provision for investment, off Balance

Sheets & Others
Net Profit before Taxation
Less: Provision for taxation
Net Profit



Statutory Reserve



Retained Earnings




2.8.4: Internal control and monitoring:

The bank gives utmost importance to supervision and monitoring of banking activities.
The Bank Branches are subject to the following Audit & Inspections every year Bangladesh Bank Inspection;
Internal Audit & Inspection;
External Audit;
Audit Committees Audit & Inspection.
During the year 2010, the branches have been audited & inspections several times. This has
improved the working norms & procedures of the bank to a great extent

2.8.5: Dividend:
The board of directors of the bank has recommended stock dividend @ 25% i.e. to
issue 25 bonus shares as against 100 shares to its shareholders for the year 2010.

2.9.0: .Financial Statement





Authorized Capital




Percentage (%)


Paid-Up Capital
Required Capital
Capital Maintained (a+b)
a) Core Capital
b) Supplementary Capital
Capital Adequacy Ratio
(In June 2010 as Basel II)
Total Deposit
Investment - Deposit Ratio
Classified Investment
Required Provision for Investment
Provision Maintained against Investment
Excess Provision
Amount of provision against Off-Balance
Amount of provision against Off-Balance
Amount of provision against Off-Balance
Operating Profit
Net Profit
Earning Per Share
Net Asset Value per Share
Foreign Remittance
Total Foreign Exchange Business
Total Assets
No. of Employees
No. of Branchs
No. of Foreign Correspondent

















2.10.0: Banking Operation in Customer

Automation in Banking Operation:


Shahjalal Islami Bank is an Industry Standard, Islamic Shariah & Latest technology
based modern bank. The bank is equipped with state-of-the-art technology and committed to
provide technology based modern banking solutions to its valued customers.

On Line Banking:
To provide better services to the valued customers using the latest technology and
electronic media competing with other private banks to set and establish full automated, on-line,
centralized banking systems interfacing (connecting software) with all delivery channels. Like:
ATMs (Automated Teller Machine), POS (point of sale-Fund transfer machine for purchasing at
any shop/service center etc.) Any branch banking, home banking, tele banking, Internet banking
etc. online banking/ any branch banking is a system where transactions, query and system where
transactions, query and statements of any client of a certain branch may be carried out from
another branch of the bank.

2.10.1: SJIBL VISA Card

Card is considered as a new dimension of product resulting from technological development in the
banking arena. In line with our affiliation with VISA International for VISA ATMs and POS, the
following two products are launched broadening service products of the Bank to the clients:

VISA Electron (SJIBL VISA Debit Card - local)

VISA Prepaid (SJIBL VISA Prepaid Card)
1. SJIBL VISA Prepaid (Prepaid Card - International)


2. SJIBL VISA Prepaid (Prepaid Card - Dual)

3. SJIBL Souvenir Card (Gift Card - Local)
SJIBL VISA Debit Card:
To a customer, "My card, my money" concept is used for Debit Card. Any accountholder of SJIBL
can apply for a SJIBL VISA Debit Card against his/her Al-Wadiah Current Deposit (AWCD),
Mudaraba Savings Deposit (MSD) or Mudaraba Short Notice Deposit (MSND) Account. He/she
is fully authorized to enjoy the benefits of cash withdrawal from ATMs, liberty of shopping,
dining, paying utility bills and having access account information through SMS, etc. round the
SJIBL VISA Prepaid Card (International):
SJIBL VISA Prepaid International Cards are also open to the customers even having no account
with Shahjalal Islami Bank Limited. Cardholders can have the card endorsing US Dollar paying
against Travel Quota, Exporters Retention Quota or marking Lien of his/her FC Account. SJIBL
VISA Prepaid International Cards are accepted worldwide at all the VISA labeled merchant
outlets, ATMs, etc.
SJIBL VISA Prepaid Card (Dual):
The Dual Card is a hassle free product, no need to carry two separate plastic cards for local and
international use. Now, with one plastic card, the Cardholders can enjoy all the benefits and make
transactions locally & globally from their Prepaid card account at all the VISA labeled merchant
outlets, ATMs, etc.
SJIBL VISA Souvenir Card (Gift Card - Local):
SJIBL Souvenir Card is a very attractive and stylish product. Like a Gift Card, SJIBL Souvenir
Card can be used by anyone wishes to. The intending customer may have the card instantly or
may customize the card as required. The SJIBL Souvenir Cards are accepted locally at all the
VISA labeled merchant outlets, ATMs, etc.

Sense of satisfaction of having an International brand


Anywhere anytime banking

24 hours and 7 days a week banking
Directly linked to Cardholders Account at SJIBL (AWCD/MSD/MSND)
Convenient Cash Withdrawal at ATMs
Accepted at all VISA terminals locally & globally
Local & International transactions with the same card (for Dual Cards)
Balance Inquiry
PIN Change
Avoid pressure at counters of bank
Minimizing risk of carrying cash
More to come ...
Special Feature

No Cash Advance Fee at SJIBL ATMs

Account is not required for Prepaid cards
SMS Notification Service
SJIBL VISA Debit Card - Local

Two copies of passport size photograph.

A filled in SJIBL Card application form.
Maintain a deposit (AWCD/MSD/MSND) Account at any branch of SJIBL.

SJIBL VISA Prepaid Card (Local / International / Dual)


Two copies of passport size photograph and personal information for customized card.
Photocopy of passport from 1 to 7 pages including endorsement pages.
Lien confirmation of FC A/C from the concern Branch for issuance of card against FC.
For issuance of card against in ERQ A/C maintained with SJIBL or with other Bank, lien
confirmation should be obtained from the respective Bank/Branch.
For issuance of card against new exporters and importers/producers quota relevant papers such
as, recommendation letter from EPB/copy of tax return etc. are also required.
Deposit slip for deposited money against endorsement amount.
Forwarding Letter from the respective Branch with detail particulars for card.
SJIBL VISA Prepaid - Local / Souvenir Card

Two copies of passport size photograph and personnel information for customized card.
Deposit slip for deposited money against Prepaid Local or Souvenir/Gift amount
Forwarding Letter from the respective Branch with detail particulars for card.
Usage Limit

Transaction Limit

Cash withdrawal limit (total)

4 times per day

Cash withdrawal limit (amount)

Tk. 30,000 per day

(up to Tk. 50,000 per day on request)

Balance checking

4 times per day

PIN change

2 times per day

Invalid PIN retry count

3 times per day

Card usage limit in ATMs (total)

10 times per day

SJIBL VISA Card usage


SJIBL VISA Card can be used at Q-Cash, DBBL, Brac Bank and all VISA labeled ATMs in

Shopping at a large number of shops, restaurants, departmental stores, supermarkets, boutiques

and other merchants throughany VISA accepted POS terminals in Bangladesh
SJIBL VISA Prepaid Local/International/Dual Card can be used locally & globally in entire
VISA labeled merchant outlets & ATMs

2.10.2: SMS/ Pull Push Service:

Benefit of SMS-

A new technology based service will attract new client base.

Clients will be facilitated with Cell phone based banking service.
Enhanced and extended customer services levels on a collaborative basis.
Will reduce teller quest.

Balance inquiry,
Cheque book request,
Cheque leaf status,
FC rate information,
Cheque stop payment instruction,

Statement request by e-mail,

Last three transaction statements,
Help inquiry &
PIN change.

2.10.3: Personnel Management

Information Systems
In Head Office PHIS system is going to be implemented in full phase with the
following features:
Employees recruitment, posting, personal, leave, increment, promotion, training, retirement,
attendance, payroll, PF, Tax etc should be controlled by PMIS. This system should be run in
LAN & WAN environment and centrally controlled data of all employees. Employees ID,
Biometric Image with signature will remain be enrolled in the software.

The bank has already become a member of Society for Worldwide Inter Bank Financial
Tele-Communication (SWIFT) to provide Secured and accurate communication network for
financial transactions, i.c. L/C, Remittance, etc.



The bank has also established liaison with the facility of REUTERS, through which the
bank received regular, latest information about the exchange rate, etc and other price sensitive
information to take prompt and correct decision.

3.0 Foreign Remittance

Western Union
Western Union a
fast, reliable and
convenient way to
send a money

Western Union Financial Services Inc. U.S.A. is the number one and reliable money transfer
company in the world. This modern Electronic Technology based money transfer company has
earned world wide reputation in transferring money from one country to another country within
the shortest possible time.
Shahjalal Islami Bank Limited has set up a Representation Agreement with Western Union
Financial Services Inc. U.S.A. Millions of people have confidence on Western Union for sending
money to their friends and family. Through Western Union Money Transfer Service, Bangladeshi
Wage Earners can send money quickly from over 280,000 Western Union Agent Locations in
over 200 countries and territories world wide- the world's largest network of its kind, only by
visiting any branches of Shahjalal Islami Bank Limited in Bangladesh.
The money sent by your loved ones is very special to you indeed. So, at Western Union, we offer
the following benefits:
Our customers have benefited from our electronic money transfer for over 150 years. Each
transfer can be tracked electronically to make sure that you receive the money your loved one
has sent.
When your loved one sends you money, within minutes you can receive it in Bangladesh.

Bank account is not required!

Just go to a Shahjalal Islami Bank Limited branch anywhere in Bangladesh offering Western
Union Money Transfer. Then simply fill a form and collect your money.
Shahjalal Islami Bank Limited has 26 such branches all over Bangladesh and Western Union has
over 280,000 agent locations across 200 countries and territories.
3 easy steps to receive your money:

Your loved ones deposit the money at any Western Union Agent location and get a receipt with

He/she then informs you about the amount sent (sender name, amount, sending country,
receiver name and MTCN).

You go to the nearest Shahjalal Islami Bank Branch with a valid identity card. You fill a simple
form and receive the money

3.1.0: Future outlook of the Bank

Business policy and six years perspective plan of the Bank from 2007 to 2012 has been
formulated to attain the financial strength, sustainable growth and operational efficiency. To
protect the interest of the stakeholders, bank has formulated the 6 (six) years perspective plan for
consolidation of the growth and profitability. During the period of perspective plan, Bank has the
main objective to attain the highest operational excellence and consolidation to turn the bank in
to a dynamic Islamic Bank in the Country.

During the period from 2007 to 2012, the Bank has the plan to regain its excellence in all the
core areas of operations and business. During this period, new and potential avenues of Business

in all areas of operation to be explored and expanded through the network of existing 51
branches and more new branches to be opened gradually during the plan period subject to
permission of Bangladesh Bank. The Bank ensures optimum utilization of banks invisible
fund/deposit to be mobilized in future in an organized way to maximize Banks profit
consolidating the financial strength of the Bank and to achieve the overall objective, mission &
vision of the Bank as whole.

The financial position and overall achievement of the bank shall be reviewed and evaluated in
the light of the Annual Budget and Business plan on a quartered basis in every year. Necessary
change, adjustment, modification & re-allocation shall be made after periodical review keeping
the real scenario in view. All out effects shall be made for promotion and improvement of
quality-investment through effective supervision, control, follow-up and monitoring in order to
lessen the quantum of over dues, to arrest further over dues and to recover, regularize the over
dues and declassify the classified investments. Adequate care & caution to be exercised for
compliance with 05 core risks as per Bangladesh Banks policy/instructions during the planed
period. Asset-Liability of the Bank shall be managed effectively through ALCO to avoid
Liquidity Risk, profit rate risk, operational and other risks.

Thus, Shahjalal Islami Bank Limited will be turned into a dynamic Islamic Bank in the country
and will expand its Banking Business all over the Country to provide the Banking services to the
groups including the deserving Economic groups of the society have no easy access to the
Banking Channel. This will help for alleviation of the poverty, income generation, creation of
employment opportunity, up-gradation of the standard of living of the lower economic groups,
which will also contribute to the emancipation of Islami Bank Limited is the years to come.

3.2.0: Definition of Bank

What is BANK?

It has not so far been decided as to how the word Bank originated. Some authors opine that this
word is derived from the words Bancus or Banque which mean a bench. Other authorities hold
the opinion that the word Bank is derived from the German word Back, which means joint
stock fund. It is therefore, not possible to decide as to which of the opinion is correct, for no
record is available to ascertain the validity of any of the opinions
The term bank is being used for a long time yet it has no precise definition. The basic reason is
that the banks perform not just one but many types of functions originally the banks were
supposed to make short term loans to the traders only. The banks now not only make short term
loans to the formers, traders , industrialist etc. But also invest in a wide variety of long term
earning assets.
The commercial banks also undertake and execute trust, deal in stock, shares and debentures,
issue guaranties and indemnities underwrite and sell new securities, and deal in foreign exchange
Banking industry acts as life-blood of modern trade and commerce acting as a bridge to provide
a major source of financial intermediation.
However some of the definitions of bank from different authors are as follows.
Depository financial institution: a financial institution that accepts deposits and channels the
money into lending activities; "he cashed a check at the bank"; "that bank holds the mortgage on
my home"

According to Dr. Hart

Banker or bank is a person
or company carrying on business of

receiving money and collecting drafts for the

customers subject to the obligation of honouring cheques
drawn upon them from time to time by
customers to the extends of
the amounts available
on their currents

In the words of G W Gilbert

A banker is a dealer in capital
or more properly a dealer in money.
He is an intermediate party between the borrower and lender.
He borrows one party and
lends to the

3.2.1: Definition of Islamic Banking

The General secretariat of the Organization of Islamic Conference (OIC) defines an
Islamic bank as a financial institution whose statuses, rules and procedures expressly state its
commitment to the principles of Islamic Shariah and to the banning of the receipt and payment of

riba (interest) on any of its operation. Islamic Banking Act of Malaysia (Act No.273a) has given
the following definition.
Islamic banking means any company which carries on Islamic banking business and holds a
valid license; and all the offices and branches in Malaysia of such a bank shall be deemed to be
one bank.

Islamic banking business means banking business whose aims and operations do not
involve any element which is not approved by the Religion of Islam.
Therefore, if a bank by definition, avoids interest on its all transactions, but dose not keep itself
away from other Haram (forbidden) transactions, like investment to pork meat industry, alcoholic
beverage industry, gambling, etc. is not an Islamic, but all Islamic banks must be interest free.
Islamic bank, thus, can also be defined as a financial institution which dose not pay or receive
interest on any of its operations in any form and its all activities conform to the principles of
Islamic Shariah.

3.2.2: The Main Objectives of Islamic

Common objectives of all Islamic Banks are said to be as follows:

To abolish Riba.

To establish Baiya (trade, commerce and industry).

To mobilize savings for productive purpose.

To earn reasonable profit through Halal (permissible) transactions.

To establish Maruf (good) and Ihsan (kindness).

To create more employment opportunities by increasing economic activities.

To distribute income and wealth equitably.

Not to allow concentration of wealth.

Generally to serve all classes of people, especially to favors the weaker sectors.

To establish a balanced and welfare society.

The above objectives are also the objectives of Islamic economics, so, hundred percent of these
objectives cannot be achieved by Islamic banking operations alone. Islamic banking can play an
important role to achieve these objectives for the establishment of a welfare economy.

3.2.3: Slant Features of Islamic Banks

The Islamic banks have some distinguishing features, among which, the followings are
important .Islamic banks:
Are financial institutions.
Are committed not to pay or receive riba on any of their operations and to operate in
accordance with the principals of Islamic Shariah.

Imply zero rate of interest, but not zero rate of return; earn profit / loss from their
investment and distribution the same to PLS- depositors and share holders.
Earn profit, but avoid profiteer ting which is prohibited in islam,


Are production and value oriented rather than security oriented,

Deal with money, not in money.
Is welfare oriented.
Extend quard Hasana (beautiful loan on good faith) fadility and maintain sadqah
tahbil (social welfare fund)
Pay Zakat,
Have Shariah Board to examine their activities and operations.

3.3.0: Banking System of Bangladesh

The banking system of Bangladesh is composed of a variety of banks working as
Nationalized Commercial Banks (NCBs), Private Banks, Foreign Banks, Specialised Banks and
Development Banks. However, 28 out of 50 banks in Bangladesh are private, of which only 5,
namely Islami Bank Bangladesh Limited, Exim Bank Limited, Al-rafah Islami Bank Limited,
Social Investment Bank Limited, and The Oriental Bank Ltd have been operating as Islamic
banks. Besides these full-fledged Islamic banks, some conventional banks in the private sector
have opened full-fledged Islamic banking branches and Islamic Banking Counter respectively to
deal with the Islamic banking business parallel to their conventional operations.

3.3.1: Banking Environment in

Bangladesh appeared as a new nation on the world map in the year 1971. After
independence financial institutions, especially banks played a vital role in re-constructing the

war-torn economy of Bangladesh. As reported by BSB (P. 29, 1993), the banking system of
Bangladesh is a mixed one comprising nationalized, private and foreign commercial banks.
Bangladesh Bank is the central bank of the country and is in charge of monetary policies of the
Government and controls all commercial banks. Immediately after independence the
government of Bangladesh nationalized most of the banking institutions, though, within a short
period, due to the failure in administering them properly, many of them were returned to their
owners. The banking sector is one of the fast growing sectors of economy in Bangladesh. At
present there are 34 banks working in the financial market of the country, including five Islamic
banks and a number of foreign banks.

Central Banks and the Islamic Banks and submitted a report in 1981 on the Promotion,
Regulation and Supervision of Islamic Banks. The report highlighted the need to provide for
central bank assistance to the Islamic banks on a basis compatible with the Shariah. The report
also discussed many monetary aspects such as liquidity requirements, reserve requirements,
supervision of Islamic banking activities, and fiscal treatment of income from participation,
ownership, capital requirements, and the maintenance of sound relationships between capital,
reserves and total assets. The report recommended the fostering of interest-free financial
instruments to enable the Islamic banks to meet the statutory liquidity requirements of the central
banks. A study regarding The Relationship between Central Banks and Islamic Banks prepared
by IAIB was submitted to the third Expert Level Meeting on Islamic Banking Studies (Dhaka,

3.3.2: Role of Bangladesh Bank in

Promoting Islamic Banking in
Though there is no complete Islamic Banking Act for controlling, guiding and
supervising the Islamic banks in Bangladesh, some Islamic banking provisions have already been

incorporated in the amended Banking Companies Act, 1991 (Act No. 14 of 1991). Bangladesh
Bank did not set up any separate Department at its Head Office to control, guide and supervise
the operation of the Islamic banks. Inspection and supervision of the Islamic banking operations
are conducted by the Bangladesh Bank as per the general guidelines framed for the conventional
banks. So, ensuring implementation of Shariah principles in the Islamic banks are being
conducted by their own Shariah Councils. The role of Bangladesh Bank in controlling, guiding
and supervising the Islamic Banks in Bangladesh in accordance with Islamic Shariah is very
minimal. In observing the Shariah implementation status of the Islamic banks, Bangladesh Bank
examines only the report of the respective banks Shariah Councils. However, the inspectors and
supervisors of Bangladesh Bank are not equally familiar with the technicalities of the different
operational methodologies of the Islamic banking. This is because of the fact that there is no
separate Department to look into this important matter. A committee of experts set up by the
Governors of Central Banks and Monetary Authorities of the OIC countries examined the whole
range of relationships between the

3.3.3: Difference Between Islamic

Banking and Conventional Banking
In Islamic Banking accounting the main difference with conventional Banking is that
Islamic Banking can not deal with interest transaction and also con not deal with Haram
Point wise differences between Islamic Banking and conventional Banking Particularly in
Accounting Transactions are Summarized below:www.AssignmentPoint.com

Islamic Banking

Conventional Banking

1. Islamic Banking are to follow Quaran, 1. Conventional Banking follows man made
Sunnah, Ijma and Kias i.e. Shariah in all the practice and rules.
business transactions including Accounting
2. They can not engage in any interest in the 2. They conduct their Transactions on interest
transactions/ Haram(prohibited) business.

basis and also engage in Haram (prohibited)


3. If any interest is including/ entered in the 3. Interest is their main income.

operations of the banks it should be excluded
from the regular income if the bank.
4. If any income is earned violating Shariah 4. They do not follow Sharia rule and regulation.
principles that can not be included in the
distributable income of the bank.
5. in Musharaka investment, income can not be 5. In conventional banking there is no practice of
accounted for on accrual basis.

Musharaka Investment.

6. For delay of investment, in case of Bai- 6. No such Bai- Muraba and Bai- Muazzal



Investment investment in conventional Banks. They charge

further amount of profit can not be changed.

interest / penal interest for delay in payment.

7. In case of over due Investment compensation 7. They charge interest / penal interest on over
may be charged if an independent committee due investment.
like Review committee decided to impose the
8. Islamic Bank is to pay Zakat on its reserves.

8. They do not pay any Zakat on reserves.


9. Islamic Banks are to pay a certain agreed 9. They do not pay a certain amount to the
amount of investment Income (agreed in depositor from their Investment income, rather
percentage) to the Mudaraba Depositors.

they pay fixed rate of interest irrespective of

Investment Income.

10. Mudaraba Depositors are to share the loss, 10. Their depositors do not share any loss or
if any, incurred out of Investment market from profit.
Mudaraba deposits.
11. Islamic banks are to follow Accounting, 11. They only follow International Accounting
auditing and Shariah standards developed by Standards (IAS) and International Standards of
Accounting and Auditing Organization for Auditing (ISA).
Islamic financial Institutions (AAOIFI) for in
addition to international Accounting Standards
(IAS) and international accounting standards of
Auditing (ISA) developed by international
Federation of Accountants.

3.4.0: General Banking Activities

4.6.1: Relationship between Customer & Banker
Banker & Customer Relationship:
The Banker Customer relationship is essentially a debtor-creditor contractual relationship.
This relationship may be divided into two categories.

Legal relationship

Behavioral relationship.


After the contractual relationship is established between the banker and customer, they have to
avoid by some implied conditions of the contract as well as practices of the bank.

Some of the condition and practices are as follows:

Customer is to use checkbook while demanding payment from his account.

Customer should keep checkbook in his safe custody.
Customer must inform the bank on time for any loss of check leaf or checkbooks.
Customer while depositing money or presenting check, they must do that during business
hour of the bank.
Bankers also should give necessary banking advice and help the customer in various
banking activities.

Termination of Bankers & Customers Relationship:

The legal relation between banker and customer may be terminated with a notice given by
both of them with a view to close the account. Besides, there are some reasons for termination of
legal relationship. Some of these are stated below: After the death of a customer.
When a customer declared insolvent by the court.
When a customer becomes lunatic etc.
When the bank signifies as bankruptcy by the law.

3.4.1: Types of Accounts of SJIBL


A bank is essentially an intermediary of short-term investment/funds. It can carry out

extensive lending/investment operations only when it can effectively mobilize the savings of the
community. A good banker is one who effectively mobilizes the savings of the community as
well as makes such use of savings by making it available to productive and priority sectors of
the economy thereby fostering the growth and development of the nations economy.

Accounts are opened under the following three modes:

a) Al Wadiah Current Deposit (ACD)
b) Mudarabah Savings Deposit (MSD)
c) Short Notice Deposit (SND)
1. Al Wadiah Current Deposit (ACD):

The word Al-Wadiah has been derived from the Arabic word Wadayn which means
to keep/to deposit/to give up/Amanat. As per Shariah , Amanat means to keep something
(goods/money/others) to any reliable person/institution for safe and secured preservation of the
same keeping its ownership unchanged and which will be returned to the owner of the fund on
demand as it is/in original shape. In case of Amanat Bank/any other institution cannot use,
invest and amalgamate the funds without the prior permission of the owner of the Amanat.

The depositor can deposit any amount in this account.

The depositor can withdraw any amount by cheque.
No profit is allowed in this account.
The depositor shall also not bear any loss.
Cheques, bills etc collected in this account against commission.
Govt. excise and incidental charge realize from this a/c as per rule.

2. Mudarabah Savings Deposit (MSD):

Mudaraba Saving Deposit (MSD) 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. It aims at encouraging savings of non-trading persons(s), institution(s), society, etc. by
depositing small amount of money in the bank.

Restriction on withdrawals and deposit:


1. The number of withdrawals over a period of time is limited. Two withdrawals per
week are permitted. But more than that no interest will be paid on rest amount for
that month.
2. The total amount of one or more withdrawal on any date should not exceed 25%
of the in the accounts unless 7 (seven) days advance notice is given.
3. The customer may deposit any amount in the savings bank account subject to a
minimum of Tk.2000/- in the account.
Payment of Profit:
Shahjalal Islami Bank Limited is proving 4% profit on Mudaraba Saving Deposit.
Opening a Saving Account:
For Operating a Mudaraba Saving Deposit following documentation are required:
1. Two copies of passport size photographs of accountholder and one copy passport

photo of nominee.

2. Introductory reference.
3. National ID Card.

General Precautions of opening an MSD Account:

After opening an account and before issuing a Cheque book the authorized officer should
check the account operating form for the complete information, which is given by the customers:

1. Name of the account holder.

2. Photos of the account holder.
3. Date of opening.
4. Types of account.
5. Present and permanent address

6. Name of the nominee and their address.

7. Initial deposit
8. Specimen signature in the form in the Specimen Signature Card.
9. Name, address and the account number of the introducer.

3. Short Notice Deposit (SND):

Shahjalal Islami Bank Limited also receives term deposit from the clients. The SND
account is different from the interest-based banks. It is also a Time Deposit account. The
formalities for opening of this account are similar to those required for Al-Wadiah Current
Account. The only difference is that seven (7) days notice is required for withdrawal of any sum
and profit is paid. The rate of profit for this account is 3.50%. If the withdrawal on demand is
desired, it may be paid subject to the for-feature for the period of notice or the expired of notice.

3.4.2: Mudaraba Deposit Products

Mudaraba Monthly Term Deposit Receipt
Mudaraba Double /Tripol Benefit Scheme
Mudaraba Milliner Deposit Scheme
Mudaraba Monthly income Scheme
Mudaraba Mohor Deposit Scheme
Mudaraba Cash Waqf Account
Mudaraba Hajj Deposit Scheme
Mudaraba Bibaho Deposit Scheme

Mudaraba Lakhopoti Deposit Scheme

Mudaraba Education Deposit Scheme
Mudaraba Housing Deposit Scheme

3.4.3: Different Types of Account Holders

Anyone can open an account with the banker if he is not incapable of entering into a
valid contract and the banker is satisfied of his bonafide and is willing to enter into the business
relations with him. There are certain types of accounts in regard to which the banker should
take note of the relative laws and exercise pre-cautions in order to safeguard its interest. Some
types are:
A/c opened by minors
Joint (two or more persons)
Co-operative societies
Public bodies


3.4.4: Account Opening


This section opens account. It receives account opening application from the interested
applicants, examines and scrutinizes the applications and then selects final customers. Selection
of customers is very much important as the success and failure of the bank is largely dependent
on the valued customers. If the customer is found to be fraudulent or create some sort of
forgery, it will ultimately destroy the goodwill of the company.
The following formalities must be maintained by the customer for opening of different types
of account.


Genuine & acceptable introduction.


Attested photograph of the account operators/A/c holders.


Certificate from the Chairman/ Commissioner/ Gazetted Officers or any

responsible person.


Verification of introducers signature.


Admittance of the signature(s) of opener/ operators A/c.


Transaction profile.


Obtain KYC.




Letter of Thanks
(a) It must be sent to the A/c holder and introducer.
(b) Office copy to be affixed with the AOF.
(c) It will have to be dispatched under registered courier.
(d) Courier /Postal receipt must be affixed to the AOF.
(e) This receipt must contain the A/c number against which the letter has been
(f) After receiving back of the acknowledgement, it must be affixed with
concerned AOF for easy location in case of need.
(g) If the letter of thanks is returned back, without delivery for non-availability
of address or person, it must be marked on this letter and to be informed to
the computer department.


Joint Account:

All item for individual account holder as stated above.


Two or more persons can open an account.


Authorized person can operate the account.


Authority is automatically revoked by death, insanity or bankruptcy.


Stoppage of payment by any one of the account holders.


Special instruction regarding operation of the A/c in any of the following forms:
(a) By any of the Joint account holder singly.
(b) By either or survivor singly.
(c) By either singly.
(d) By any two or more joint account holding jointly.
(e) By all the survivors jointly.


Accounts mandate-regarding drawing, survivorship, power to overdraw and other

matter, i.e. for withdrawal of goods kept for safe custody, separate mandate from
surviving persons, closing of debit a/c, stopping operation of a/c after instantly of
any person, obtain receipt made by survivors and representatives of deceased


Role of survivorship incase of joint-account by husband and wife:

If the account is opened for convenience of husband, then the balance cannot be
claimed by the window but to be sent to the estate of the deceased person. But, if
the account is opened for the provision for wife, then the widow can claim the
balance in full.

Sole Proprietorship:
In case of opening an account by a sole-proprietor of a firm, he/she should sign the
account opening form and furnish his specimen signature showing his representative character.

All items for individual account holder as stated above.


Valid trade license or attested photocopy thereof issued by the competent



Membership certificate from local business association/Chamber of Commerce.

Partnership Firm:

A banker should not open an account in the name of a partnership unless

one or more of the partners apply to him to do so. Except where the partner,
making an application for the opening of an

Account in the firms name, is deprived of the power, which fact is known to the banker, there
can be no legal objection to a banker opening an account in the name of the firm at request.
Failure, however, to make proper enquiries by referring to the partnership agreement or any
other record in writing which maybe available before opening of account on behalf of a firm in a
partners name may lead a banker in trouble.

All items for individual account holder as stated above.


Valid trade license or attested photocopy thereof issued by the competent



Two or more person can form a partnership firm by partnership deed.

(Registered notarized).


Clear mandate for operating the a/c from the partners regarding name of the
persons to draw cheques and borrow money, to overdraw, to mortgage or to sell
properties owned by the firm.


In case of insolvency of the firm: Operation should be stopped after receiving

notice of insolvency of the firm.


Insolvency of the partner: If the balance is in debit, the a/c must be closed and
the debt should be proved to the receiver. If the a/c is in credit the other partners
may continue the account. Any cheque previously drawn by the partners maybe
paid on the confirmation of the partners


Death of a partner: If the account is in credit, then other partners may be

allowed to continue the same but the bank should take fresh mandate from other
partner but if the account is in debit then the account must be closed to determine
the liability of the deceaseds estate.

Private Limited Company:

A company registered under the Companies Act, 1913 has a legal entity apart from its
shareholder. Private Company means a company which by its articles:
Restricts the right to transfer the shares if any;
Limits the number of its members 2 to 50.
Prohibits any invitation to the public to subscribe for the shares, if any or debentures of
the company.
When a current account is to be opened for a private limited company the banker will have to
obtain the following requirements:

All terms for individual account holder as stated above.



Copy of memorandum and articles of association duly certified by the

Secretary/Director of the company.


Certificate of incorporation.


Certified copy of resolution of the board of Directors regarding opening of a/c,

the execution of papers and conduct of the account.


List of Directors under the signature of the Chairman.


Copies of latest financial statement/ Transaction profile.

Public Limited Company:


Any seven or more persons associated for any lawful purpose, any subscribing their
names to a memorandum of association and otherwise complying with the requirements of the
Act (13A) in respect of registration, from an incorporated company. When an account is to be
opened in the name of a Public limited Company the following formalities are to be observed:

All terms for individual account holder as stated above.


Certified copies of memorandum and article of association are to be submitted.


Certificate of incorporation.


Certified copy of commencement of business for inspection and return in case of

a newly floated company.


List of Directors under the signature of the Chairman to be furnished.


Certified copy of a resolution of the Board or Directors regarding opening of the

bank a/c execution of the papers and conduct of the account to be furnished

Trust Account:
A trustee is a person entrusted with the work of the management of a property under a
trust created by the owner thereof for the benefit of another or of another and the owner section
3 of the Trust Act 1882 defines trust & a trustee as, A trust is an obligation annexed to the
ownership of property and arising out of confidence reposed in and accepted by the owner, or
declared and accepted by the owner or declared and accepted by him, for the benefit or another
or of another and the owner, the persons who reposes or declares the confidence is called the

All terms for individual account holder as stated above.


Trustee is a person entrusted with the work of a management of a property under

a trust deed.


Discharges his duties as per trust deed.


Attested photo is required.

3.4.5: Mudaraba Savings A/c (MS A/c)


Nationality certificate from Ward Commissioner/ UP Chairman or Passport

(photocopy) or National ID Card (photocopy) of every signatories of the A/c.


KYC form for individual.


Introduction of any Savings account holder.


Two copies attested photographs of a/c operators.

3.4.6: Mudaraba Special Savings

(Pension) MSS A/c

KYC Form for individual.


Introduction of any current account/ Savings account holder.


Two copies attested photographs of a/c operators.

3.4.7: Different Types of Deposit Scheme

The Shahjalal Islami Bank Limited Containing:
Monthly Deposit Scheme (MDS).
Mudaraba Term Deposit Receipt (MTDR).

Millionaire Scheme (MS).

Monthly Income Scheme (MIS).
Tripol Benefit Scheme.


Multiple Benefit Scheme.

Hajj Plan Scheme.
Housing Deposit Scheme.
Cash Waqaf Deposit Scheme.
Lakhopati Deposit Scheme.
Mohor Deposit Scheme.
Marriage Deposit Scheme.
Education Deposit Scheme.
Small Business Deposit Scheme.
Special Term Deposit Scheme.

Some of these are described in following:

Mudaraba Term Deposit Receipt (MTDR):

It is like a fixed deposit in the conventional banking system but it does not
receive or accept interest rather, this account give profit and collect deposits. In this mode
Tk10,000/- or above can be deposited against client will get non-transferable instrument of equal
amount. The depositor will not receive any cheque book for this account. If a customer
withdraws his or her money before one month s/he will not get any kind of profit. On the other
hand, after the matured if client dont withdraw his/her money it will be auto renewed with
imposed profit for the next days. In case of one year or more than that, if a depositor does not
withdraw his capital it will work as a primary deposit for the next year.

If a depositor would like to withdraw his profit after six months s/he will get the profit
accordance with previous years profit rate. After the announced yearly profit or loss, if bank felt
in loss position then the depositor bound to incur the loss. In absence of account holder the
selected nominee will get the money. If the accountholder does not mention any nominee, in that
case, the inheritance of the depositor will enjoy the profit accordance to inheritance certificate.
Any kind of tax or excise duty can be cut down according to government circular.

Monthly Deposit Scheme (MDS):

It is like a deposit pension scheme. A depositor can open a MDS account for
depositing of Tk.100, Tk.250, Tk.500, Tk.1000, Tk.2000, Tk.10000, Tk.5000, and Tk.25000,
Tk.50000 for 5 years or 8years or 10years. The installment will be paid within first 25 days of
the month. If the 25th of month is off day, then the installment will be paid on next working day.
The deposit of installment can be paid by cheque. In the case of cheque, clearing date of the
cheque will be the actual deposited date.

The depositor can pay installment from his account through prior permanent instruction. In this
term, the accountholders(s) are bound to pay Tk.25 for fine charge. If the account is close before
the maturity then profit will be calculate according to savings rate. If a depositor fails to pay
consecutive four installments then the account will be closed automatically and profit will be
calculate as Savings rate. But for first six-month no profit will be calculate. Nominee will enjoy
the profit in absence of the accountholder.

Monthly Income Scheme (MIS):

It is the scheme for profit earning. In this account depositor can deposit minimum
amount of 50,000/- and above. Depositor will get 500/- against 50,000/-. But depositors have to
deposit the amount for 5 years. If accountholder close his or her account before maturity then


she/he will receive the profit accordance with savings rate. In the absence of accountholder, the
specified nominee will get the amount.

Double & Tripol Profit Mudaraba Savings Scheme:

In these scheme depositors can deposit more than 10,000/- for 8 years 6 months and
after the maturity accountholder will receive double than his deposited amount and after 13 years
3 months accountholder will receive tripol than his deposited amount. If depositors want to close
his account before maturity then he is bound to receive at the savings rate. For opening this
account applicant need one copy of recent photograph and one copy photograph of nominee (if

Millionaire Scheme (MS12, MS15, MS20& MS25):

Normally, it is the account for children or inheritance. Here, applicants are the
selected people for operating the account on behalf of the accountholder. The depositor should to
deposit the account within first 15 days of the month; neither will s/he be designated as debtor to
the bank. If 15th date is the off day then the next working day will be schedule date. The
installment can be paid through cheque. No chequebook will be issued for this account, but the
bank will provide deposit book.

3.4.8 Types of Deposit & Their Corresponding Provisional


Deposit Product
Mudaraba Saivings Deposit
Mudaraba Short Notice Deposit
Mudaraba Term Deposit
1 Month
2 Month
3 Month
6 Month
1 Year
Mudaraba Scheme Deposits
a) Monthly Income Scheme:
1 Year-3 Years

Provisional Rate

(TK.1,000/-per month

per lac)


b) Multiple Benefit Scheme:

Double Benefit
Yearly Rate:12.25%
Triple Benefit
Yearly Rate:12.25%

(will be doubled in 6
(will be doubled in 6

c) Millionaire Scheme:

5 Years
(TK.12,470/per Month)
(TK.4,500/per Month)
(TK.3,280/per Month)
(TK.2,120/per Month)
(TK.1,080/per Month)
25 Years
(TK.575/per Month)
d) Monthly Deposit Scheme:*
5 Years Yearly:11.54%
8 Years Yearly:11.66%
10Years Yearly:11.83%
e) Hajj Scheme:**
Up to 10 Years



Mudaraba Hajj Deposit Scheme: Amount payable at maturity



Expected amount payable at maturity to meetup Hajj Expense







Mudaraba Waqf Cash Deposit:

Mudaraba Term Deposit Receipt (MTDR): Amount payable at
maturity (Provisional)


Mudaraba Term Deposit

Year General

Provisional Rate

Double & Tripol the Money Scheme:

& Tripol


Mudaraba Muhor Deposit Scheme: Amount payable at maturity

3 Years
5 Years
8 Years
























Monthly Deposit Scheme: Amount payable at maturity


Provisional Amount
Payable at
maturity for
5 years

Provisional Amount
Payable at maturity
8 years


Payable at
maturity for
10 years





Mudaraba Millionaire Scheme (MMS) Amount payable at maturity








Lakhapoti Deposit scheme: Amount payable at maturity


3 Years
5 Years
8 Years
10 Years






Education Deposit Scheme: Amount payable at maturity



10 Years
15 Years
20 Years
















Marriage Deposit Scheme: Amount payable at maturity















General Banking

Al Wadeah Current Deposit Account
1.1.01 Service Charges
1.1.02 Incidental Charges
1.1.03 Account Maintenance Fee
1.1.04 Minimum Required Balance
1.1.05 Statement Charges
1.1.06 Balance Confirmation Charges


1.1.07 Stop Payment of Charges

1.1.08 Inoperative Account Activation
1.1.09 Dormant Account Activation Charges
1.1.10 Account Closing Charges
Mudaraba Savings Deposit Account
Service Charges
Incidental Charges
Account Maintenance Fee


Minimum Required Balance

Statement Charges


Balance Confirmation Charges


Stop Payment of Charges

Inoperative Account Activation
Dormant Account Activation Charges
Account Closing Charges



Mudaraba Special Deposit Account

1.3.01 Service Charges
1.3.02 Incidental Charges
1.3.03 Account Maintenance Fee

BDT 500.00 Half Yearly
BDT 5,000.00
Other than June & December
Closing BDT 200.00
Other than June & December
Closing BDT 200.00
BDT 50.00
BDT 200.00
BDT 200.00
BDT 300.00
No Charges on Average Balance
Up to BDT 5,000.00 and BDT
100.00 on Average Balance Up to
BDT 25,000.00 and BDT 500.00 on
Average Balance above BDT
25,000.00 Half Yearly
BDT 2,000.00
Other than June & December
Closing BDT 100.00
Other than June & December
Closing BDT 200.00
BDT 50.00
BDT 100.00
BDT 100.00
BDT 200.00

No Charges on Average Balance



Minimum Required Balanch

Statement Charges


Balance Confirmation Charges





Stop Payment of Charges

Inoperative Account Activation
1.3.09 Dormant Account Activation Charge
1.3.10 Account Closing Charges
Issuance of MICR Cheque Boo
1.4.01 Cheque Book with 10 Leave
1.4.02 Cheque Book with 25 Leave
1.4.03 Cheque Book with 50 Leave
1.4.04 Cheque Book with 100 Leave
Standing Instruction
1.5.01 Standing Instruction within Branch
1.5.02 Standing Instruction within Inter Branch
1.5.03 a) Standing Instruction setup fee
1.5.04 b) Standing Instruction execution fee
Local Remittanc
1.6.01 Issuance of Payment Order
a) Up to BDT 1.00 Lac
b) Above BDT 1.00 Lac to BDT 5.00
c) Above BDT 5.00 Lac
1.6.02 Cancellation of Payment Order
a) Up to BDT 1.00 Lac
b) Above BDT 1.00 Lac to BDT 5.00
c) Above BDT 5.00 Lac
1.6.03 Duplicate Issuance of Payment Order
a) Up to BDT 1.00 Lac
b) Above BDT 1.00 Lac to BDT 5.00
c) Above BDT 5.00 Lac

Up to BDT 5,000.00 and BDT

100.00 on Average Balance Up to
BDT 25,000.00 and BDT 500.00 on
Average Balance above BDT
25,000.00 Half Yearly
BDT 10,000.00
Other than June & December
Closing BDT 100.00
Other than June & December
Closing BDT 200.00
BDT 50.00
BDT 200.00
BDT 200.00
BDT 200.00
BDT 50.00
BDT 100.00
BDT 200.00
BDT 400.00
BDT 100.00
BDT 10.00
BDT 50.00
BDT 100.00
BDT 150.00
BDT 25.00
BDT 50.00
BDT 100.00
BDT 100.00
BDT 150.00
BDT 200.00

Issuance of Demand Draft

@ 0.15% Min. BDT 25.00
Cancellation of Demand Draft
BDT 100.00
Duplicate Issuance of Demand Draft
BDT 150.00
Collection Charges for Local Cheque
a) Within Clearing House







b) Outside Clearing House

c) Cheque Return Within Clearing
d) Cheque Return Outside Clearing
Commission for Collection of
a) Up to BDT 0.25 Lac
d) Above BDT 0.25 Lac to BDT 5.00
e) Above BDT 5.00 Lac
Issuance of Bangladesh Bank Cheque

BDT 50.00
BDT 50.00
BDT 50.00

@ 0.20% Min. BDT 50.00

@ 0.15% Min. BDT 100.00
@ 0.10% Min. BDT 500.00
Annual BDT 2,000.00 or BDT
100.00 for each Cheque
At Actual Min. BDT 50.00
At Actual Min. BDT 20.00

1.6.10 Telex/Fax Charge

1.6.11 Postage Charge
Certificate Issuance
1.7.01 Solvency Certificate
BDT 300.00
1.7.02 Certificate for BO Account
BDT 100.00
1.7.03 Certificate for any other purpose
BDT 200.00
Rent and Security Money for Locker
1.8.01 Small Size
BDT 1500.00
1.8.02 Medium Size
BDT 2000.00
1.8.03 Large Size
BDT 3000.00
1.8.04 Security Money (Refundable)
BDT 3000.00
1.8.05 Key Replacement Charge
BDT 1000.00
Issuance of Duplicate Security Instrument
BDT 200.00 per Instrument
Direct Credit of Refund Warrant of IPO (by
BDT 10.00 per Instrument
responding IBCA of Head Office)
Online Transaction Charge
1.10.01 Up to BDT 20,000.00
BDT 10.00
1.10.02 Above BDT 20,000.00 to BDT
BDT 25.00
1.10.03 Above BDT 1,00,000.00 to BDT
BDT 50.00
1.10.04 Above BDT 10,00,000.00
BDT 100.00
Officials of the SJIBL may avail online banking facilities free of charges.
In all cases, usual stamp charges to be borne by the applicants.
In all Case of Charges, VAT shall be Applicable

3.6.0: Closing of an Account


The relationship between a banker and his customer is contractual one and continues as
long as both of them so desire. The relationship may be terminated by either of them by giving
notice of his intention to the other party. Moreover, the banker is bound to suspend payment out
of the customers account under the compulsions of law. The rights and obligations of a banker in
this regard are as follows:

1. If a customer the banker in writing to close his account, the banker is bound to
comply with such direction. The latter need not ask the reasons for the formers
direction. The account must be closed with immediate effect and the customer is
required to return the unused cheques.

2. If an account remains in operation for a very long period, the banker may request the
customer to withdraw the money. Such step is taken on the presumption that the
customer no longer needs the account. If the customer could not be traced after
reasonable effort, the banker usually transfers the balance to an unclaimed Deposit
Account, and the account is closed. The balance is paid to the customer as and when
he is traced.

3. The banker is also competent to terminate his relationship with the customer, if he
finds that the latter is no more a desirable customer. The banker takes his extreme step
in circumstances when the customer is guilty of conducting his account in an
unsatisfactory manner i.e. if the customer is convicted for forging cheques or bills or
if he issues cheques without sufficient funds or does not fulfill his commitment to pay
back the loans or overdrafts etc.

The banker should take the following steps for closing

such an account:



The banker should give to the customer due notice of his intention to close the account and
request him to withdraw the balance standing to his credit. This notice should give sufficient
time to the customer to make alternative arrangements.

If the customer does not close the account on receipt of the aforesaid notice, the banker should
give another notice intimating the exact date by which the account be closed otherwise the
banker himself will close the account. During this notice period the banker can safely refuse to
accept further credits from the customer and can also refuse to issue fresh chequebook to him.
Such steps will not make him liable to the customer and will be in consequence with the
intention of the notice to close account by a specified date. The banker should not refuse to honor
the cheques issued by customer, so long as his account has a credit balance, which will suffice to
pay the cheque. If the banker dishonors any cheque without sufficient reasons, he will be held
liable to pay damages to his customer under section 31 of the negotiable instruments Act, 1881.

1) In case of default by the customer to close the account, the banker should close the
account and send the money by draft to the customer. He/she will not be liable for
dishonoring cheques presented for payment subsequently.
2) While closing the Mudaraba Saving Deposit (MSD), Al-Wadiah Current Deposit
(ACD) and Short Notice Deposit (SND) a request letter to be obtain from the account
holder. After obtaining the request from the account holder unused cheque leaves should
be collected from the account holder and signature to be verified.
Before closing the account prior clearance to be obtained from the general banking,
investment, and foreign trade department. After getting clearance from the respective
department account should be closed as per desire of the account holder by realizing our

charges such as closing charge, service charge and excise duty etc and issue a payment
order for the balance amount in favor of the account.

3.6.1: Cash Section

The bankers transactions are mainly of three types. They

Transfer &
The cash section of any bank plays very significant role in general banking department because,
it deals with most liquid assets. Basically cash department is the most vital and sensitive
department of the branch which deals with all kinds of transaction in cash. All cash receipts and
payments are made through this department. The SJIBL is equipped with electronic machinery
with fully computerized system which delivers quick service to its valued customers. This
section receives cash from depositors and pay cash against Cheques, Draft, Pay Order (PO), etc
over the counter. This section accepts cheques from the depositors for payment in cash. The
drawer who wants to receive money against cheque comes to the payment counter and presents
the cheque to the officer. He verifies the following information:

I. Date of the cheque.


II. Signature of the account holder.

III. Material alteration.
IV. Whether the cheque is crossed or not.
V. Whether the cheque is endorsed or not.
VI. Whether the amount in figure and in word corresponds with each one.
Then the officer checks the cheque from the computer for further verification. Here is the
following information that is checked:
I. Whether there is sufficient balance or not.
II. Whether there is stop payment instruction or not.
III. Whether there is any legal obstruction or not.
The cash section deals with all type of negotiable instruments. It also includes the Vault which
is used as the store of the cash instruments. The vault is insured up to a certain amount, which is
called the vault limit; the excess cash is then transferred to Bangladesh Bank. The SJIBL,
College Gate Branch Vault limit is 1.5 crore. When the excess cash is transferred, the cash
officer issues IBDA. The vault counter is around 35 lacs.
Any client who wants to deposit money will fill up the deposit slip and give the form along with
the money to the cash officer over the counter. The cash officer counts the cash and compares
with the figure written in the deposit slip. He then puts his signature on the slip along with the
cash received seal and records in the cash receive register and also in the computer against the
account holder.

3.7.0: Bills & Clearing Section


A cheque is a bill of exchange drawn on a specified banker and not expressed to be

payable otherwise than on demand. [Section-6, Negotiable Instrument Act, 1881]
A cheque may be an open cheque (which can be presented for payment by the holder) or a
crossed cheque (which can be paid only through a collecting banker.)
Cheques of its customers are received for collection from other banks. In case of receiving
cheques, following points should be checked very carefully:
The cheques should not carry a date older than the receiving date for more than 6
months. In that case it will be a stale cheque and it will not be allowed for
The amount in figure and words in both sides of the pay-in-slip should be same.
The name mentioned in the cheque should be same in both side of the pay-in-slip
and it should be the same with the name mentioned in the cheque.
The cheque must be crossed etc.
The place where banks meet and settle their dues is the clearing house. The clearing house of
the SJIBL, Dhaka Main Branch.

3.8.0: Types of cheque


Inward clearing cheques:

Inward cheques are those ones drawn on the respective branch which have been

presented on other banks and will be cleared/honored through the clearing house. For example,
the cheque drawn on SJIBL, Head Office.

Outward Cheques:
These cheques are received on the counter from other banks.

There are 3 types:

1. Drawn on another branch of SJIBL. These are called Outward Bills for Collection
2. Drawn on another bank, which is situated in the clearing house area. This cheques are
called clearing cheque.
3. Drawn on another bank, which is situated outside the clearing area. These cheques are
also called as OBC.
In the first case, these cheques are directly sent to the respective branch and requests them to
send IBCA (Inter Bank Credit Advice) by which a branch credits the account of another
branch. No clearing house formalities are necessary here. When IBCA comes, then customers
accounts are credited of the amount for the cheque.
In the second case, the cheques are sent to the clearing house. When the drawee bank honors the
cheque then the account of the depositor against the cheque is credited.
In the third case, two procedures exist. First way, if the bank exists within the clearing house
area of the drawer bank, then we send the cheque to that branch of our bank and that branch
collects the proceeds through clearing house formalities and sends an IBCA to us. In the second

case if there is no branch of our bank, then we directly send the cheque to the drawee bank and
request them to send the cheque to the proceeds by TT, DD or by other means.

Outward Bills for Collection (OBC):

OBC are those cheques drawn on other banks which are not within the same clearing
house. An officer gives OBC seal on this type of cheques and later sends a letter to the manager
of the branch of the same bank located in the branch on which cheque has been drawn. After
collection of that bill, branch advice the concerned branch in which cheque has been presented
to credit the customer account through IBCA. In absence of the branch, officer sends a letter to
the manager of the bank on which the cheque is drawn. That bank will send pay order in the
name of the branch. This is the procedure of OBC mechanism.

Inward Bills for Collection (IBC):

All clearing cheques are not received on the counter. Some cheques are received from
other source for collection. These cheques are received from other branch of SJIBL. These
cheques are settled by sending IBCA.

3.9.0: Remittance


Remittance means transmission/transfer of money from one place to another. Local

remittance represents remittance that takes place within the territory of a country.
Banks have a wide network of branches all over the country and offer various types of
remittance facilities to the public/customer/client etc.

Virtually there are three types of remittances as under:

DD- Demand Draft
TT Telegraphic Transfer
PO - Payment Order

5.9.1 Demand Draft:

According to Section85 (A) of the negotiable instruments Act, a demand draft is an
order to pay money drawn by one office of the bank upon other office of the same bank for a
sum of money payable to order on demand.
The followings are essential features of a demand draft issued by the bank:
1. It is a negotiable instrument.
2. It is drawn by one office of a bank upon another office of the same bank.
3. It is payable on demand.
4. Its payment is to be made to the person whose name is mentioned in the instrument or
according to order. In other words, it can not be made payable to the bearer.

A: Issuance of DD:
1. The following columns should be filled in properly.
(a) Name & address of the applicant.
(b) Telephone No.
(c) Date.
(d) Signature of the applicant.
(e) Name of the
(f) payee.
(g) Drawee branch.
(h) Amount in words and figure.

2. Commission to be realized/charged as per Head Office circular, at present @ 0.1 % but

min TK.10/3. Total amount should be deposited by the party in cash or cheque as per arrangement.
4. Printed DD block/leaf to be filled in by a bank official as per request of the purchase i.e.
(a) Name of the issuing branch.
(b) Date.
(c) A/c payee rubber stamp.
(d) Payees name.
(e) Amount in words and figure.
(f) Drawee branch
5. DD should be signed by two authorized officials.
6. Test Number should be given for DD of TK. 25000/- and above.

7. Amount should be written by a cheque written in red ink.

8. Particulars of DD should be entered in DD issue registered B-44 under
supervision of a authorized official.
9. Telegram/Telex should be sent for amount exceeding Tk.1.00 lac Telex/Telegram charge
should be realized from the customers.
10. If the DD issued for cash payment A/c payee rubber stamp should be cancelled and a
letter requesting the drawee branch to pay the DD in cash should be issued under sealed
cover and signature of the payee should be attested.
11. DD Advice should be sent on the same day.

B: Accounting entries for issuance of DD:

Debit..Cash/partys A/c

C: Payment of Drafts:
1. When the draft is presented to the drawee branch for payment, the particulars of the draft
are checked with the advice and signature(s) therein verified.
2. Payment of the DD has not been stopped is to be ensured.
3. Verification of Test no. is to be done.
4. In case the advice is not received when the draft is presented, the bank will pay the draft,
after satisfying itself that the instrument is in order. However, on payment of a draft in
the absence of the relative advice the drawee branch should inform the issuing branch
and obtain confirmation about the payment.
5. The drawee branch should ensure that the payment of the instrument is made in due

6. As the demand drat is payable to order it is duty of the paying branch to obtain
identification of the payee if payment is desired over the counter.
7. If the DD is presented through a bank, the endorsement appearing on the instrument
should be prima-facie in order of certified by the collecting banker.
8. Though there is no time limit for presentation, the paying bank should put an enquiry if a
draft is presented after a reasonable period say 6 months. Such draft may be paid if the
collecting banker certifies that amount has been credited to the payees A/c in absence of
such a certificate, it would be advisable to return the draft for revalidation before

5.9.2 Telegraphic Transfer (TT):

Telegraphic Transfer is by far the quickest method of transferring funds form one
place to another. Some times, the remitter of the funds requires the money to be available to the
payee immediately. In that case the banker is requested by the remitter to remit the funds
telegraphically. It is an instruction conveyed by telegraph/telex/telephone to the drawee branch
for paying certain amount of money to a specified person.

A Accounting entries for issuance of TT:

Debit..Cash/Remitters A/c
Credit.Telex/Telephone Charges A/c

B Accounting entries for payment of TT:

Debit . IBDA A/c
Credit. TT Payable A/c
Debit.. TT Payable A/c
Credit. Clients A/c

5.9.3 Payment Order:

Payment order is meant for making payment of the bankers own or of the customers
dues locally and not for effecting any remittance to an out station. In a sense, the payment order
is used for making a remittance to the local creditors.

Issuance & Payment of PO:

1. Total amount should be deposited through cheque/cash.
2. Commission to be realized as per banks circular.
3. Printed payment order leaf should be filled in as per F-19 and signed by two authorized
4. Entry should be given in B-22 register under supervision of authorized official.
5. The instrument should be handed over to the purchaser.
6. PO is required to be discharged by the beneficiary where applicable on revenue stamp of
appropriate value against in cash or through account.
Remarks: No Test is required for PO

B Accounting entries for issuance of PO:

Dr. Cash/ Partys A/c
Cr. PO A/c
Cr. Commission A/c

C Accounting entries for payment of PO:


Dr. PO A/c
Cr. Cash/Partys A/c

3.10.0: SWOT Analysis


Fully computerized accounts maintenance.

Money counting machine for making cash transaction easy and prompt.

In SJIBL Bank SWIFT is being used for foreign trade related operations like
letter of credit, fund transfer, guarantee, etc with optimum security.

Well decorated and air conditioned facilities.

SJIBL has a well-diversified pool of human resources, which is composed of

people with high academic background. Also, there is a positive
demographic characteristic- most employees are comparatively young in
age yet mature in experience.

SJIBL provide ATM debit card and nonstop banking facilities.

Structural set up and business location is strategic.

Wide product line

Bank is very alert to preserve the asset quality of the bank.

Continuous training both at home and abroad is going on the develop the
skill of human resources.

Shahjalal Islami Banks assets position is quite satisfactory


Dependent on fixed deposits.

Limited Market Share.

Absence of an ungraded website.

Lack of setting arrangement for the waiting customers.

Limited branch network.


Sometimes it seemed to me that charges and other fees are very high
compared to other private banks. It frequently creates customer

Some officials dealing with retail products have not been as a professional
as a private bank does require.

Sometimes the Customer Service Officers were so busy that it creates

delay to the customer service. And at the end of the day the closing were
also delayed.

Most of the time there were problem with the ATM machine. In ATM, It
sometimes remained out of order, some time out of cash and sometimes
customer face the problem of cash and credit capture.

Charges of statement or certificates are very high.

Here the opportunity means an area of buyer need or potential interest in which
a bank can perform profitably. If the management can use the continuous
support properly it can enjoy huge opportunity for improving its growth. Other
opportunities are

Expansion of new area of investment

Credit card business

Regulatory environment favoring private sector bank.

Technical support to small Scale industries (SSI) in order to enable them to

run their enterprises successfully.

SME and Agro based business.

Besides, the Bank is to provide full range of commercial banking services.



The environmental threat is a challenge posed by an unfavorable trend or

development that would lead to deterioration in sales or profit. Banks other
threats are as follows

Number of potential competitors in home and abroad is increasing day by


Restless political condition in Bangladesh, such as Strike, Boom blast, etc.

threats the prosperity of Bank.

Market pressure for lowing Profit rate.

The bank must be bound to follow the rules of central Bank.

4.0: Findings
Lack of strong monitoring unit.
Sometimes the process of information transferring to the management is lengthy.
Banks deal with documents is not goods is one of the core principles of conventional
banking. However Islamic banking needs to with goods are imposed by Shariah.
Bank has limited ATM booths.
Lake of central AC for better working environment.
Generally investment clients do not come to the Islamic Banks only for Shariah purpose
rather for low transaction cost.
Lake of training facility of junior officers.
Fewer clients for trade business.
PC Bank server problem.

4.1.0: Recommendation

Although this branch is making a huge amount of profit and generating a large
volume of deposit, a number of problem have been dictated while I working this branch. Based
on my work experience at SJIBL, College Gate branch, I would like to put my some
Bank need to increase its quality of customer service and it should Separate form
other banking activity.
Proper and sufficient training is required for each and every staff to work with full
capability in the best way.
Branch should be innovative and diversified in its service and well behave with their
Need modern technology, without using modern technology no bank can even think
of remaining in the business in near future. So the bank must decide right now how it
equips its branches with modern technology.
Information system should be developed. Bank should be using internet not only for
local but also international correspondence.

Chain of doing job in the branch should be made clear. In the branch chain of
completing a work is not clearly, one employee sometimes performs same duty and in
another time different employee performs it, so no employee can be held liable for
defective work or for delay in work.
Computer division need to be up date and extensive for the greater welfare of the
Bank should be increasing their branch all over the Bangladesh as soon as possible.


Bank should more invest in agricultural sector. Should give Micro credit for small
Bank should emphasize on marketing division through media.
Bank should take officer who are subject related that can understand Banking with in
a short time they can progress a banking activity rather than other officer.
Increase the SJIBLs own ATM booth.
SJIBL requires resorting to massive image re-engineering in order to capture the
public perception to take the lead role in this sector.
SJIBL should deserve immediate attention in the promotion of the image of Shariah
based banks as PLS (Profit-loss-sharing)-banks.
Bank should more concentrate on foreign exchange.

It is a modern banking era. Each and every commercial bank is properly

utilizing technological innovations. So, SJIBL needs to utilize these

modern technologies to keep pace with the modern time.

SJIBL needs to recruit skilled human resources which can turn the bank

The bank should offer facility such as Credit card.
SJIBL should consider utilization of rural potentials from both efficiency
and equity grounds in the context of the present-day socio-economic
conditions of Bangladesh. Strong commitments and stepping up through
experiment and implementation of innovative ideas are the appropriate
ways to do that.

4.2.0: Conclusion

Interest free banking system is no more a concept. It is now a Reality, a dynamic system,
embodying a set of superior banking mechanism. More than 300 Islamic bank and financial
institutions are operating in different Countries throughout the world with a marked success
from this inception in our country in 1983. Shahjalal Islami Bank Limited has been operating
with real and confidence in corporation with other conventional banks. Bringing a new concept in
such business sector, which is growing too rapidly in the world, is rally bold step. As a large
Islamic commercial bank, Islamic bank took various steps to create employment and socioeconomic development for the poor through Islamic shariah. During the three months internship
program at College Gate Branch all the desks have been observed mire or less. Gaining
knowledge of practical banking and to compare this practical knowledge with theoretical
knowledge. Though all departments and sections are covered in the internship program, it is not
possible to go to the dept of each activities of branch because of time limitation. So, objective of
this internship program have not been fulfilled with complete satisfaction. However, highest
effort has been given to achieve the objective the internship program. During the internship, it is
found that the branch provides all the type of banking services as well as some specialized
financing activities to the economy.