This is an internship report. Title of the report is Deposit Collection Processes of Social Islami Bank Limited: A Study on Rasulpur Branch. 

Executive Summary

This report is based on the deposit collection process of Social Islami Bank Limited. This is an outcome of three months practical experience. The main objective of the report is to analyze the deposit collection process and to find out the problems of the process. Both primary data and secondary data have been used to prepare this report.

The study on Deposit Collection Process of Social Islami Bank Ltd. contains five chapters. In first chapter I discus introduction of the study, objective of the study, methodology of the study, sources of data, limitations of the study. Second chapter contains of profile of Social Islami Bank Ltd. Like as introduction, history, mission, vision, objective, function, type of deposit and product & services of Social Islami Bank Ltd. Third chapter contains conceptual frameworks. Chapter four contains of analysis findings. At the end of the report I have mentioned the recommendations and conclusion.

The study finds that lack of update products is a drawback of the deposit collection of the Social Islami Bank Limited. New products such as student loan, medical loan, marriage loan are not available in Social Islami Bank Limited. From the clients view, introducer is one of the problems to open an account. They face troubles with those clients who have not enough knowledge in banking transactions and banking rules.Lack of proper training arrangement of employees.

Finally the study recommends that Social Islami Bank Limited should update products to collect more deposits. Social Islami Bank Limited should launched new products such as student loan, medical loan, marriage loan which are not available in Social Islami Bank Limited. Social Islami Bank Limited managed their new clients on customers who face the problems when they open an account in Social Islami Bank Limited.

 

Chapter- 01

Introduction

1.1 Introduction

I am Md. --- (NAME), completed my internship from Social Islami Bank Limited, Dania Rasulpur Branch as a partial fulfillment of the requirement of Bachelor of Business Administration (BBA) degree Department of Business Administration, Bangladesh ----- University (----) Dhaka, Bangladesh. The topic of my internship is Deposit Collection Processes of Social Islami Bank Limited: A Study on Rasulpur Branch I have tried my level best to prepare of my report.

1.2 Objectives of the study

Every successful study should have well defined and specified objectives. A careful statement of objective helps in preparing a well decorated report or assignment, which facilities others to take decision based on it. The objectives may point be out under the following heads:

1.  To describe and to analyze the deposit collection process of Social Islami Bank Limited.
2.  To find out the problems of deposit collection process Social Islami Bank Limited.
3.  To recommend policies to overcome the problems.

1.3   Methodology of the study

This report is being prepared in following four (4) phases, which are:

1.       Discussion with the organizational supervisor phase
2.       Data collection phase
3.       Data analysis phase
4.       Data representation

1.4   Sources of Data

I have collection the information/data from the following sources, which as helped me to this report. The source is divided into two parts: a) Primary source b) Secondary source

Primary sources

The “Primary Sources” are as follows:

Data collection for the first time is called primary data. The methods used to collect such data include:

1.      Face-to-face conversation with the respective offices and staffs of the Branch.
2.      Informal conversation with the clients.
3.      Practical work exposures from the different desks of the departments of the Branch covered. 

 For more internship report and lecture handouts, visit here

Secondary sources

The “Secondary Sources” of data and information are:

1.        Annual Report of 2013-14 Social Islami Bank Limited
2.       Important publication of SIBL
3.        Journal/News paper articles relating of Bank
4.       SIBL Website-http//www.siblbd.com

1.5 Limitations of the study

It is obvious that every study has some limitations. The study I have made is of great importance and required me huge work. Those limiting factors that hampered my smooth workings in bank finally in preparing this report are as following:

1. The organization maintains strict confidentiality about their financial and other information. They are afraid of any type of information leakage to their competitors. So there was always difficulty to have appropriate information from them.

( Mention some problems faced during internship period)

 

Chapter-02

Profile of Social Islami Bank Limited

 2.1 About Social Islami Bank Limited

Social Islami Bank Limited (SIBL) was incorporated on 5^th July, 1995 as a result of dedicated effort of a group of established Bangladeshi entrepreneurs and internationally important personalities. The bank started commercial operational meaning of particularly economy, banking and financial activities as an integrated part of Islamic code of life. 

2.2 History of Social Islami Bank Limited

(mention the historical background of SIBL)

2.3 Mission of Social Islami Bank Limited

(mention the Mission of SIBL)                                                          

2.4 Vision of Social Islami Bank Limited

(mention the vision of SIBL)

2.5 Objectives of Social Islami Bank Limited

• The objectives of SIBL can be described as follows:
• To humanize corporate finance in the formal sector through participatory market mechanism with collateral.
• To monetize voluntary sector through participatory financing mainly on joint ownership basis.
• To integrate these three sectors operational activities of the Bank to various will-conceived and well-planned “Social Assignment and Investment Schemes” or “Social Fund” for making them economically and ethically “transparent” and “revealed”

2.6 Functions of Social Islami Bank Limited

      The functions of SIBL are as follows:

• Mobilization of idle resources of the country by accepting Deposits from the general public.
• Granting Loans and Advances to the individual firms and companies for activating and developing trade, commerce and industries and other productive activities in the country.

(Give a list of functions of SIBL)

2.7   Types of Deposit in Social Islami Bank Limited

  Generally  there are four(4) types of account.

• Mudaraba Savings Deposit (Savings Account)
• Al Wadia Current Account (Current Account)
• Mudaraba Term Deposit (Fixed Deposit)
• Mudaraba Special Deposit Pension Scheme (DPS- Deposit Pension Scheme)

2.8 Products & Services Social Islami Bank Limited

The product and services of SIBL are follows:

•  Mudaraba Term Deposit.
•  Mudaraba Savings Deposit.

(Give a list of products and services of SIBL)

2.9 Corporate Structure:

                                  Figure 01: Corporate Structure

Managing Director

Additional Managing Director

Deputy Managing Director

Executive Vice Presidents

Senior Vice Presidents

Vice Presidents

Senior Assistant Vice Presidents

First Assistant Vice Presidents

Senior Executive Officers

Executive Officers

Officers

Junior Officers

Assistant Officers

Source: SIBL website http://www.siblbd.com/home                   

2.10 SWOT Analysis on Social Islam Bank Limited

Strength

Strength means the positive internal factor that a company can use to accomplish it mission, goals, & objectives. They might include:

• Customer satisfaction
• Service quality
• Pricing effectiveness
• Special skill & knowledge
• Positive public image.

Weakness

Weakness means the negative internal factors that inhibit or restrict the accomplishment of company’s mission goal & objectives. They might include:

• Market share
• Shortage of skill work force.
• SIBL has lack of ATM booth.

Opportunity

Opportunities are the external option that a firm can exploit to accomplish its mission. They might include:

• Sales force effectiveness
• Customer retention
• Innovation effectiveness

Threat

 Threats are negative external forces that restrict a company’s ability to achieve its mission,goal, & objectives. Threat to the business can take variety type of forms such as:

• Promotion effectiveness
• Competitors entering the market.
• Economic recession
• Technological advantages

 

Chapter-Three

Conceptual Frameworks

 

(This chapter is only for theoritical part. Few of them are given here. Your can add more and more concepts/definitions relevant of your topic)

3.1 Bank

- Definition 

3.2 Types of Bank

There are various types of banks. Some ofl these  are listed  below:

Savings Banks: ----- Definition --

Commercial Banks:  ----- Definition --

Industrial Development Bank:  ----- Definition --

Land Development’s Bank:  ----- Definition --

Mortgage Bank:  ----- Definition --

Standard Banks:  ----- Definition --

Co-operative Banks:  ----- Definition --

Exchange Banks:  ----- Definition --

Consumer’s Bank:  ----- Definition --

3.3   Functions of Commercial Bank

In modern time, the functions of a modem commercial bank are manifold. The functions of a bank may broadly be divided into two parts.

1.       Basic or primary functions.
2.       Secondary functions.

-- (Describe)--

3.4 Bank Account

An account held by an investor at a financial institution. -------(Describe) ----

3.5 Cheque

Cheque is an important document that an individual, companies, governments and many other use to transact their business. By definition, cheque can be termed as a negotiable document to transfer money either in physical form or to effect inters account transfer.

3.6 Types of Cheque

Open Cheque ; Bearer Cheque; Bearer Cheque etc (Describe)

3.7 Bank Deposits

(Describe)

3.8 Bank Capital

(Describe) 

3.9 Bank Liabilities

(Describe)

 

 Chapter- Four

 Analysis & Findings

 

4.1  Deposit Collection Process of Social Islami Bank Limited

Social Islami Bank Limited collects their deposit by the different account like as Mudaraba Savings Deposit, Mudaraba Term Deposit, Al-Wadia Current Account, Mudaraba Notice Deposit, Mudaraa Scheme Deposit, Mudaraba Hajj Savings Deposit, Mudaraba Monthly Savings Scheme, Mudaraba Special Deposit pension Scheme, Mudaraba Monthly Profit Deposit Scheme, Mudaraba Education Deposit Scheme.

4.2  Type of Deposit of Social Islami Bank Limited

Generally Social Islami Bank Ltd mobilizes its deposit through the application of the wing two shariah principles

1.       Mudaraba Term Deposit.
2.       Mudaraba Savings Deposit.
3.       Al –Wadia Current Account.
4.       Mudaraba Notice Deposit.
5.       Mudaraba Scheme Deposit.
6.       Mudaraba Hajj Savings Deposit.
7.       Mudaraba Monthly Savings Scheme.
8.       Mudaraba Special Deposit Pension Scheme.
9.       Mudaraba Monthly Profit Deposit Scheme.
10.   Mudaraba Education Deposit Scheme.

Al-Wadiah(Current Account)

The word Al-Wadiah has been derived from the Arabic word wadiah means to keep/to deposit/amanat. As per shariah, amanat means to keep something 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 of demand as it is/ in original shape. In case of amana bank/ any other institution cannot use, invest and amalgamate the fund without the prior permission of the owner of the amanat.

1.        The depositor can deposit any amount in this account.
2.       The depositor can withdraw any amount by cheque.
3.        No profit is allowed in this account.
4.       The depositor shall also no bear any loss.
5.        Cheques, bills etc collected in this account against commission.

Table01: Current Account

Deposited primary amount	Profit Given	Yearly Bank Charge
At least Tk2000	No profit given	Tk300

       Source: SIBL website http://www.siblbd.com/home 

4.3  Mudaraba (Deposit Account)

The word mudaraba derive from the Arabic word darb/darabun, literally it means movement to earn profit. It is a form of partnership where one of the parties called the shahib al-mal, provide a specified amount of capital and acts like a sleeping or dormant partner, while the other party called the mudarib, provide the entrepreneurship and management for carring on any venture, trade industry, service with the objective of earning profit. The mudarib is required to work with honest and sincerity and to exert the minimum possible care and precaution in the exercise of the function. The mudaraba deposit account of Social Islami Bank Ltd is different from of business contract where one party supplies capital and manage the business by investing labor, skill, and time. The financier is called shahib al-mal and the person who undertakes the venture is mudarib.

4.4 Mudaraba Savings Deposit

To open a Mudaraba Savings Deposit account in Bank Social Islami bank following rules and regulations are applied

1.  Mudaraba Deposit of one party and on basis of operation by another party this deposit is taken.
2. By providing Introducer of the account as required by the bank and by depositing a minimum amount any depositor or multiple depositors can open single or joint account. Any educational institute, Club, Association or Social institutes can open this account.

     Table 02: Mudaraba Savings Deposit

Deposited primary amount	Profit Given	Bank Charge
Tk500	3%(Yearly)	Tk300 (Yearly)

    Source: SIBL website http://www.siblbd.com/home

4.5 Mudaraba Term Deposit

Mudaraba Term Deposits are accepted by the bank with a sum of Tk.5000 or above (multiple of 1000) from individuals (single and joint), firms (proprietorship/ partnership), limited companies, autonomous bodies, charitable institutions, association, educational institution, local bodies, trusts, etc, against issuance of non transferable receipts in acknowledgement of MTD account may be opened in the names of minors jointly with their guardians for.

                                                               Example

Received from Mr. X Guardian of Mister / Miss ….(Minor)

1.        The mudaraba term deposits are accepted for periods of 1,3,12, months.
2.       Weightage on the rate of return is given to deposits of longer maturity.

Table 03: Mudaraba Term Deposit

Deposited primary amount	Profit Given	Bank Charge	A/C Facility
From Tk10,000 Any amount	9.5%(time to time is vary )	15%  Govt. VAT	1,3,6,12 Month

Source: SIBL website http://www.siblbd.com/home

4.6 Proshanti Mudaraba Zakat Savings Account

Zakat is the most important foundation of shariah based economy and is Farz for every capable Muslim. However Zakat payers face difficulties in calculating the exact amount of Zakat. That is why; this Mudaraba Zakat Savings Account’ has been introduced like a special deposit scheme for Zakat payers.

1. The scheme holders shall conduct the account on the basis of Mudaraba policy of Islami Shariah.
2.  The depositors shall get profit at the rate of 10 percent on daily balance.
3.  The Zakat payers themselves or the bank on behalf of the Zakat payers can withdraw the Zakat amount from the total savings (including profit) after the month of December and spend the Zakat amount in selected sectors as per direction of Al- Quran.

Table 04: Proshanti Mudaraba Zakat Savings Account

Deposited primary amount	Profit Given	Yearly Bank Charge
From Tk1,000	10%	Tk300

      Source: SIBL website http://www.siblbd.com/home

4.7 Samriddhir Sopan Mudaraba Double Growth Deposit Scheme

A saver can see his /her money doubling just in six years through this scheme. To get the double growth benefit of this attractive product a depositor needs to deposit the total amount at the opening of the account.

1.   This scheme is conducted according to Mudaraba policy
2.   The scheme holders have to deposit minimum Tk 10,000.
3.   The beneficiaries shall get up to 80 percent investment facility of total deposit after two years.

   Table 05: Samriddhir  Sopan Mudaraba Double Growth Deposit Scheme

Deposited primary amount	Profit Given	Yearly bank Charge
From Tk50,000	Double Growth for 7 years	15% Govt. VAT

 Source: SIBL website http://www.siblbd.com/home

4.8 Sachchondo Protidin Mudaraba Monthly Profit Deposit Scheme

You can now lead a tension free life as your monthly expenses can now profit per month by depositing a fixed amount. It can be a relief for a retired person.

1.  The scheme holders shall be paid fixed amount of profit per month for up to 03 years while by depositing minimum Tk 50,000.
2. The amount of monthly receivable profit is equivalent to total deposit.
3. The beneficiaries shall get up to 80 percent investment facility of total deposit.

Table 06: Sachchonodo Protidin Mudaraba Monthly Profit Deposit Scheme

Deposited primary amount	Profit Given	Bank Charge	A/C Facility
From Tk50,000 Any amount	10%(time to time is vary)	15% Govt. VAT	80% Investment Facility

Source: SIBL website http://www.siblbd.com/home

 4.9 Social Islami Bank Limited Dipti Mudaraba Education Savings Scheme

You can now secure your children’s proper education by “SIBL Dipit”. At every stage of your children’s educational life this scheme remains by your side to I your burden.

1.  This is an attractive scheme aimed at implementing higher education of the children.
2.  The guardians shall get a handsome amount of money after maturity under the scheme that would help their children’s dream of achieving higher education come true.
3.  The scheme can be run for 3,5 and 10 years.

4.10   Shobornolata Special Savings Scheme for Women

As women are the home makers in the family this special scheme of SIBL helps women bear their monthly expenses to make the life easier.

1.   The depositors can ensure a happy life by depositing a fixed amount of money in the account.
2.   By depositing minimum amount of Tk 10,000 or any multiple of it the policy holders shall get a fixed amount of profit per month for up to 3 years.

Table 07: Subarnolota Special Savings Scheme for Women

Deposited primary amount	Profit Given	Bank Charge	A/C Facility
From Tk10,000 Any amount	10% (time to time is vary )	15% Govt. VAT	80% Investment Facility

Source: SIBL website http://www.siblbd.com/home

4.11 Sonali Din Mudaraba DPS

Under this scheme women can ensure a happy family life as it gives you the opportunity to meet you capital expenditure as well as monthly expenses.

1.       The scheme holders would get up to 80 percent investment facility of total deposit.
2.       The scheme holders are entitled to a savings account at the bank.
3.       The depositors shall get annual charge free Credit card and Debit card of the bank.
4.       The account can be closed before maturity and in that case profit would be given at savings rate of the bank
5.       Conditions applicable.

Table 08: Sonali Din Mudaraba DPS

DPS SHEET
Monthly         Payment                        200                        500                      1000                      1500                      2000                      3000                      5000                    10000                    15000                    20000                    25000                    30000                    50000                    60000	After 3 Years                        7920                    19800                    39600                    59400                    79200                  118800                  198000                  396000                  594000                  792000                  990000                1188000                1980000                2376000	After5 Years                      13200                    33000                    66000                    99000                  132000                  198000                  330000                  660000                  990000                1320000                1650000                1980000                3300000                3960000	After 10 Years                      26400                    66000                  132000                  198000                  264000                  396000                  660000                1320000                1980000                2640000                3300000                3960000                6600000                7920000

Source: SIBL website http://www.siblbd.com/home

4.12 Swapner Siri Mudaraba Lakhopothi DPS

You shall become a “Lakhopothi” within short time under the scheme. Having an amount of that multiple you can ensure many of your capital expenditures.

1.    This scheme is run according to Mudaraba policy of Islami Shariah.
2.    The scheme can be opened for 2, 3, 5 and 10 years.
3.    The scheme holders shall get up to 80 percent investment facility after two years of opening the account.
4.    The scheme holders are entitled to a savings account at the bank.
5.    The beneficiaries shall get annual charge free Debit card and Credit card of the bank.

 Table 09: Swapner Siri Mudaraba Lakhopothi Deposit Scheme

Deposited primary amount	Profit Given	Bank Charge	A/C Facility
From Tk10,000	10% (time to time is vary )	15% Govt. VAT	80% Investment Facility (2, 3, 5 and 10 years)

Source: SIBL website http://www.siblbd.com/home

 4.13 Social Islami Bank Limited Young Star Account

Today’s youngsters are going to the future business personalities of the country. That’s why SIBL Young Star account has been introduced with a view to raising saving tendency among school going children from childhood.

1. The beneficiaries are entitled to daily profit on daily balance, which directly adds to the account.
2. There is no need to keep minimum balance to run the scheme.
3. The scheme holders shall be provided annual charge free Debit card and Credit card of the bank.
4.  The account holders shall be given attractive gift hampers at the time of opening the account.

Table 10: SIBL Young Star Account

Deposited primary amount	Profit Given	Bank Charge	A/C Facility
From Tk100	3% (time to time is vary )	NO Charge	Savings

Source: SIBL website http://www.siblbd.com/home

4.14 Findings of the Study

The findings of the study are given here

1.  Lack of update products is a drawback of the deposit collection of the Social Islami Bank Limited.
2.  New products such as student loan, medical loan, marriage loan are not available in Social Islami Bank Limited.
3. From the clients view, introducer is one of the problems to open an account.
4. They face troubles with those clients who have not enough knowledge in banking transactions and banking rules.
5.  As the deposit is heart of running the banking activities Social Islami Bank Limited deposit growth not good. Because Social Islami Bank Limited deposit rate is low.
6. SIBL has not recruited competent people to filling its lower and mid level position they recruit only once a year. This is really tough to recruit high skilled employees.
7.  Lack of proper training arrangement of employees.

 

 Chapter Five

Recommendations & Conclusion

 

5.1   Recommendations

Though Social Islami Bank Limited (SIBL) is performing well but it has some crucial areas to improve which are prescribed below:

1.  Social Islami Bank Limited should update products to collect more deposits.
2.  Social Islami Bank Limited should launched new products such as student loan, medical loan, marriage loan which are not available in Social Islami Bank Limited.
3.  Social Islami Bank Limited managed their new clients on customers who face the problems when they open an account in Social Islami Bank Limited.
4. Social Islami Bank Limited should ensure an information desk in every branch.
5.  Social Islami Bank Limited should increase their deposit volume.
6.  Social Islami Bank Limited should recruit new employees when they are need.
7. Social Islami Bank Limited should arrange training program for the employees.

5.2 CONCLUSION
Now a day banking organization is one of most vital parts of an economy. Now banks provide various services for individual, different firms, companies even for cultivation. Banks offer a great accumulation of loans for personal and industrial purposes. SIBL is running successfully and for its good deposit performance the bank occupies 2nd positioning the Islamic Banking Sector. Taken all in all, it can be safely said the SIBL action program is directed towards development of an authentic participatory Economy beyond Market Economy. The family empowerment credit program of Social Islami Bank is gaining ground at the grass root field level in Bangladesh. 

This bank expresses its sincere thanks to the government of the People’s Republic of Bangladesh and Bangladesh Bank for their co-operation and valuable guidance to the bank. SIBL also takes this opportunity to their valued clients, patrons, well wishers, correspondents and the shareholders for their support and patronization extended during the year under review. SIBL also records its appreciation for the services rendered by the executives and the members of the staff for the stability and growth of the bank. SIB needs further active support and continued cooperation of Bangladesh Bank, ministry of finance and other government agencies, executives and employees of the bank, valued partners, clients and the community at large in accomplishing difficult tasks ahead of it.

Reference
1. Chowdhury, L.R. (2012). A Text Book on Foreign Exchange. 1st Edition, Dhaka, Bangladesh: Fair Corporation
2. Madura Jeff. (2007). Financial Markets and Institutions. 7th Edition, Mason Ohio, USA: Pearson Publication
3. Rahman, A.A.M. Habibur. (2004). Islami Banking . 1st Edition, Dhaka , Bangladesh: Panama Press
4. Rakib Abdur.(2007). Principles & Practice of Islamic Banking. 1st Edition, Dhaka, Bangladesh: Panama Press
5. Social Islami Bank Ltd. Annual Report 2012, 2013, 2014, Dhaka, 2012.

 

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