1

Internship Report
On
General Banking Activities of Social Islami Bank Limited

Course Title: Internship

Course Code: BUS 498
Section: 16

Submitted To:
Ms. Niza Talukder
Lecturer
School of Business and Economics
North South University

Submitted By:
Dewan Khalid Mursalin
ID: 1531201030

Date of Submission:
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LETTER OF TRANSMITTAL
Date
Ms. Niza Talukder
Lecturer
School of Business & Economics
North South University.

Subject: Submission of Internship Report

Dear Ma'am,
With great pleasure I am presenting my internship report, which is a part of the BBA
program curriculum.
I am so grateful to have you as my internship supervisor.
The report is mainly based on the activities of General Banking section of Social
Islami Bank Limited. While repairing the report, I have followed your instructions
and guidelines as well as those given by my bank supervisor.
This report has been completed by my experience, which I have achieved during the
internship period at Social Islami Bank Limited, Rampura Branch. This project gave
me both academic and practical exposures. I hope this experience will help me
enlighten my future carrier and knowledge as well.

Therefore, I’m seeking your kind attention to assess my report and provide your
valuable judgement and suggestion. Your kind suggestion will encourage me to
perform better research work in future. It would be highly appreciating for me if you
find this report useful and informative to have an apparent perspective on the issue.

Sincerely Yours

Dewan Khalid Mursalin

ID No: 1531201030
School of Business & Economics
North South University
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STUDENT’S DECLARATION
I do hereby solemnly declare that the project work entitled “General Banking Activity
of Social Islami Bank Limited” has been written and submitted by me, Dewan Khalid
Mursalin, ID No: 1531201030, under the guidance of Ms. Niza Talukder, Lecturer,
School of Business & Economics, North south University.
The report has been free form any kind of plagiarism and has not been submitted to
any other university/institution previously.

Dewan Khalid Mursalin

ID: 1531201030
Department of Accounting & Finance
School of Business & Economics
North South University
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ACKNOWLEDGEMENT
All praises belongs to almighty Allah, the most beneficent, most merciful who has
created and given us the ability to think.
I wish to express my sincere gratitude to Ms. Niza Talukder, faculty member, school
of business and economics, North South University for guiding me through out the
whole period.
The report presents relevant informations, descriptions, statistics analysis and also
suggestions of shortcomings. It can never be possible without hard labour and
accumulation of information from several source. So, it is mandatory to acknowledge
them all from the bottom of the heart. I want to give the best regard to Md. Matiur
Rahman, manager of SIBL, Rampura branch for giving me the opportunity to do my
intern at his branch. This work would not have been possible without the cordial
support of my in-charge Md Nasir Uddin Seikh, Md. Azizul Hakim and Ms. Nusrat
Jahan.
Without their cordial support and guidance it would not have been possible for me to
complete such an internship report. That’s why I am highly thankful to all of them.
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EXECUTIVE SUMMARY
Banking sector of our country is playing a vital role in our economic development.
There are a large number of banks operating in our country successfully. So, I decided
to complete my internship form a reputed bank in our country.
I have gotten the opportunity to work as an intern at the Rampura Branch of SIBL.
This report is the result of the three month working experience as an intern in SIBL,
Rampura branch. The report is segmented by four parts. Those are given bellow:

In the 1st chapter, I have discussed about the Introduction, Origin of the report, Scope
of the study, Objective of the report, Methodology, Limitation of the report.
In the 2nd chapter , I have discussed about History of SIBL, Business size of SIBL,
Mission and Vision, Products and services, competitors, brief summary of all
departments and the organizational structure of SIBL.
In the 3rd chapter, I have discussed all about general banking. Accounts opening
section, Bills and clearing section, Remittance, Cash Section, , Locker Service,
Accounts closing, Job responsibilities.
In the last chapter, I have discussed about Findings, Recommendations and
Conclusion.
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Table of Contents
Chapter Particulars Page No.
1 Introduction
1.1
1.3
1.4
1.5
1.6
2 Overview of the Organization
2.1
2.2
2.3
2.4
2.5
2.6
3 Activities of General Banking Sector
3.1
3.2
3.3
3.4
3.5
3.6
3.7
4 Findings and Recommendation
4.1
4.2

CHAPTER: 1
Introduction
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1.1 Background of the study

Social Islami Bank Limited is one of the most renowned and promising banks in
Bangladesh. It founded in 1995. 1995, Social Islami Bank ltd is the country’s leading
value-added financial institution based on Shariah' Principles. SIBL comprises of
SIBL Securities Ltd, SIBL Investment Ltd, SIBL Foundation Hospital. Working
closely with the valued clients and stakeholders to provide them one-stop services,
access to the very latest products using technology. At present, SIBL has 161
branches and 110 agent banking outlets all over the Bangladesh. More than 4000
people are working here. According to the profit margin SIBL stood 10th in 2018 and
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according to the CEO of SIBL Kazi Osman Ali, SIBL will become a top ranking bank
in the next few years.
For coordinating my internship I have been placed Social Islami Bank Limited,
Rampura Branch. It is one of the busiest branch of SIBL having the mother account of
some giant companies of Bangladesh. For example Pran RFL Group, BSB Global
Network and many more. There are 03 sections in Rampura Branch. They are General
Banking, Investment Department and Foreign Exchange Department. I mostly worked
on the general banking sector as it need more human resource to handle the clients
and general banking is core sector of this branch. I have given my utmost effort and
attention to learn the functions of general banking. After completing my internship, I
am pretty much able to explain all the functions of general banking and I am also
eligible to explain some other functions about foreign exchange like LC ( letter of
credit).
In the organizational part will briefly describe overview of the organizations historical
background, functions, mission and vision, ownership pattern, foreign correspondents
and overseas operations and benefits provided to customers by the organization.
Branch operation part will describe the product and service provided to the customers
by a branch.

1.2 Origin of the study

As a part of our Bachelor of Business Administration program (BBA), internship is
mandatory for gaining practical knowledge from an business organization. It really
helps us to know that how can we relate our education in our work life successfully.
We required to work in an organization for 8 to 12 weeks to complete the internship
program. I am blessed that I have had the opportunity to do my internship in SIBL.
This experience will surely help me to build up my future career. The hardest part of
this internship program is to synchronise my theoretical concept with the real work
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field. The purpose of this internship program are mainly:

 To get and organize detail knowledge on the job responsibility.
 To experience the real business world.
 To fulfill the requirement of BBA Program.

1.3 Scope of the study

I was assigned to work in mainly in general banking departments of the bank in
Rampura Branch. I have tried to observe and understand the detailed activity of
general banking staring from account opening to account closing. I also tried to learn
some functions of Foreign Exchange such as Letter of Credit. This report has been
prepared though discussion with bank employees and the clients. All the employees of
this bank is really helpful and they always gave me he right instructions. So that I can
learn some important things besides the banking functions such as corporate culture.
The annual report of several years and the website of SIBL helped me a lot to make
this report more informative.

1.4 Objectives of the study

 To present an overview of Social Islami Bank Limited.
 To evaluate the general banking activities of SIBL.
 To identify some problems of Social Islami bank limited.
 To suggest some recommendations to overcome the identified problems.

1.5 Methodology of the study

For preparing the report I used to types of data. They are primary data and secondary
data.
Primary Data Source:
 Discussion with the employees.
 Interview with the Vice President, The Relationship Manager, General Banking
In-charge.
 Observation on organizational procedures and structures.
 Observation on daily activates of general banking section.
 Conversation with the customers.
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Secondary Data Source:

 Annual Reports.
 SIBL Website.
 On-line Journals and Newspapers.

1.6 Limitations of the study

 Shortage Of time: As we are assigned for only 8 to 12 weeks, we don’t get the
proper time to understand every details of the organization.
 Lack of experiences: As we gain only theoretical concepts from the regular
courses, there was lack of experiences in collecting information, doing analysis
and talking assessment of the related topics.
 Busy professionals: There were some lack of cooperation with the high level
employees such as manager and in-charges. They are very busy for their work. As
a result it was very difficult to get them in their free time.
 Lack of practical knowledge: For the lack of practical knowledge some
shortcoming may be available in the report. We didn’t work on any banking soft-
wares before. So, it was a tough job for me to cope up with using the soft-wares.

CHAPTER: 2
Overview of the Organization
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2.1 History of SIBL

Social Islami Bank Limited (SIBL) is one of the leading Islami bank among the nine
Islami banks in Bangladesh. SIBL is registered under the companies Act 1994 with its
heads office 15 Dilkusha C/A, Dhaka-1000. SIBL comprises of  SIBL Securities Ltd,
SIBL Investment Ltd, SIBL Foundation Hospital. The Bank started its operation from
22, November 1995 and it has since stepped into 25th year of its journey. In the year
2018 SIBL as a total capital of 26,111.51 crore BDT and 8,121.29 crore paid up
capital. Currently SIBL has over 4000 employees in 161 branches across the country.
It has also 110 Agent Banking outlets to cater financial services to the remotest parts
of the Land.
The bank under takes all types of banking transaction to support the development of
trade and commerce in the country. SIBL services are also available for the
entrepreneurs to set up new venture and BMRE of industrial units. To provide client
services in respect of international trade it has established wide corresponded banking.
SIBL relationship with local and foreign bank stride and financial interest home and
abroad. Since the very inception, Social Islami Bank Ltd. is working with the
philosophy of serving the nationals as an ideal and unique financial house. Every
organization has some objectives of its own. The prime objective of Social Islami
Bank Ltd. is to earn profit throw undertaking the responsibility of providing financial
help for the development of the country’s commercial and industrial sector. Adopting
new strategic Business Policy, SIBL will leave no stone unturned to boost business in
all areas of operation to achieve its corporate goals.
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2.2 Business Size of Social Islami Bank Limited

Particulars 2016 2017 2018

Authorized Capital 10,000.00 10,000.00 10,000.00
Paid Up Capital 7031.42 7382.99 7382.99
Total Shareholder’s Equity 12950.32 14187.80 14166.45
Capital Base (Tier 1&2) 16916.08 19195.04 21715.08
Total Deposits 149773.60 190564.50 21715.08
Client Deposit 138537.30 178846.10 203126.69
Investments ( General) 134116.90 174196.10 210045.51
Investments ( Shares & Securities) 149192.40 12310.58 13082.52
Foreign Exchange Business 149192.40 167382.30 202037.00
Fixed Assets & Premises 3072.04 3257.52 3480.82
Total Assets 180112.10 227704.02 276348.95

2.3 Mission & Vision of SIBL

Mission of SIBL
• High quality financial services with the latest technology.
• Fast, accurate and satisfactory customer service.
• Balanced & sustainable growth strategy.
• Optimum return on shareholders’ equity.
• Introducing innovative Islamic banking products.
• Attract and retain high quality human resource.
• Empowering real poor families and create local income opportunities.
• Providing support for social benefit organizations-by way of mobilizing funds and
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social services.

Vision of SIBL
Vision of SIBL In SIBL journey towards continuous excellence it is striving to
become the Country’s leading Islamic Bank offering one-step service of an wide
range of value added products and services meeting the needs of its customers;
conducting its business ethically in accordance with the laws of Shariah while
optimizing best utilization of the most modern state-of-the-art technological solutions
through creation of a pro-active organizational culture based on sound team spirit,
fairness, mutual understanding and pragmatic leadership always remain open to new
ideas and adaptable to the best practices in the market ensuring recognition and
quality banking experience to its customers and deliver best value to all its
stakeholders as well.

2.4 Products And Services

• Mudaraba Term Deposit
• Mudaraba Savings Deposit
• Al-Wadia Current Account
• Mudaraba Notice Deposit
• Mudaraba Scheme Deposit
• Mudaraba Hajj Savings Deposit
• Mudaraba Monthly Savings Scheme
• Mudaraba Special Deposit Pension Scheme (5 Years)
• Mudaraba Monthly Profit Deposit Scheme
• Mudaraba Education Deposit Scheme
• Mudaraba Home Saving Scheme
• Mudaraba Millinery Deposit Scheme
• ATM Service
• Locker Service
• Online Banking
• Utility Billing Service

2.5 Competitors
At present 57 banks are operating in Bangladesh, forty local private banks, nine
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foreign banks, eight state-owned banks. Banking sector has become a competitive
market at present time. All banks are competitors of SIBL. But banks which are
following Islamic Shariah banking concept are mainly competitors of SIBL. There are
total nine banks which are following Islamic Shariah banking concept in Bangladesh.
They are:
1. Islami Bank Bangladesh Ltd. (1983)
2. ICB Islami Bank Ltd. (1987)
3. Al-Arafah Islami Bank Ltd.. (1995)
4. Social Islami Bank Ltd. (1995)
5. Exim Bank Ltd. (1999)
6. First Security Islami Bank Ltd. (1999)
7. Shajalal Islami Bank Ltd. (2001)
8. Union Bank LTD. (2013)
9. Bank Al Falah Ltd. (2005)

2.6 Brief Summary of All Departments

In Rampura Branch of SIBL, there are three departments:
1. General Banking
2. Investment
3. Foreign Exchange
General Banking:
General banking is the starting point of all the banking operations. It is the
department, which provides day-to-day services to the customers. It opens new
accounts, remit funds, issue bank drafts and pay orders etc. Provide customers
through quick and sincere services is the goal of the general baning department. SIBL
general banking is divided into five sections:
1. Accounts opening and closing section.
2. Bills and clearing section.
3. Remittance section.
4. Cash section.
5. Locker service.

Investment:
It is the main section of earning profit of the bank. Investment section provide some
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products and services. They are:

1. Bai Muazzal
2. Hire purchase under shirkatul melk
3. Musharaka
4. Ijara
5. Bill purchase
6. Quard

Foreign Exchange:
Foreign trade constitutes a sizeable portion of international transactions of a country.
Payment received for exports and made for imports from a substantial part of its
remittances from and to other countries. In our country, a major share of the current
balance of payments is made up of exports and imports of merchandise on private and
government account. Thus, trade is the most important factor giving rise to payments
between countries. Foreign trade is a type of specialization, which like other forms of
specialization increases productive efficiency and standard of living of the people of
the country concerned. Origin trades are mainly two types. They are;
Import Trade
When a particular country wishes and does bring in some goods and services from
another country, trade occurring between there two countries is called import trade.
Import trade means procurement and purchase of goods and services from another
country or countries. Therefore, purchasing function of international trade is called
import trade.
Export Trade
Selling of goods and services or other related functions for the transfer of surplus
goods or services for a value or just to merchandise them abroad, trade occurs
between countries. Thus export or sale of additional goods and services or surplus
goods and services is called export trade. There is another particular type of export
trade named Re-Export Trade.

2.7 Organizational Structure

Top Management
• Chairman
• Vice Chairman
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• Board of Directors
• Managing Director
• Deputy Managing Director

Executive Level Management

• Senior Executive Vice President
• Executive Vice President
• Senior Vice President
• Vice President
• Assistant Vice President

Mid level Management

• Senior Principal Officer
• Principal Officer
• Senior Executive Officer
• Executive officer
• Officer

Junior Level Management

• Management Trainee Officer
• Trainee Officer
• Trainee Assistant
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CHAPTER: 3
General Banking Activities

GENERAL BANKING AREA

General banking is the starting point of all the banking operations. It is the department
which provides day-to-day services to the customers. It opens new accounts, remit
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funds, issue bank drafts and pay orders etc. Provide customer through quick and
sincere services Is the goal of the general banking department. It provides those
customers who come frequently and those customers who come one time in banking
for enjoying ancillary services. In some general banking activities, there is no relation
between banker and customers who will take only one service form bank. On the
other hand, there are some customers with who banks are doing its business
frequently.
SIBL General banking is divided into five sections.
1. Account opening and closing section
2. 2. Bills and clearing section
3. 3. Remittance section
4. Cash section
5. 5. Locker Service

3.1 Account Opening and Closing Section

Banker-customer relationship begins with the opening of an account by the customer.
Opening of an account binds the same into a contractual relationship. But the
selection of customer is very crucial. In fact, fraud and forgery of all kinds start by
opening of an account by the customer(s). So, the bank takes extra care in its
selection. SIBL officer opens different types of accounts on the request of clients. The
procedure of opening account is given below:

A) Mudaraba Savings Deposit: Before opening of a savings Bank Account the

following formalities must the completed by the customers:
 Account opening Form: To be filled in and signed by each account holder.
 Latest passport size photograph (2 copies) for cach account holder attested by the
introducer.
 Account payee cheque in favor of the account holder or cash deposit.
 1 Copy of National Identity card/ Ward Commissioner Certificate.
 Introduction of account holder: Must be signed by introducer with account ID &
number.
 1 (One) copy of nominee's photograph (attested by the account holder).
 1 Copy of nominees National Identity Card.
 Initial deposit TK. 1000 (One Thousand Taka Only)
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After fulfilling above formalities, open an account for the client and provide the
customer with a deposit book and a cheque book.

B) Al-Wadiah Current Deposit (Individual)

 Account opening From: To be filled in and signed by each account holder.
 Latest passport size photograph (2 copies) attested by the introducer's seal and
sign.
 One copy of valid Trade license attested by introducer's seal and sign.
 One copy of National Identity Card attested by introducer's seal and sign.
 Company seal and TIN (Tax identification Number) Certificate.
 One copy of nominee's photograph (attested by the account holder's seal and
sign).
 Introduction of account holder: Must be signed by introducer with seal, account
ID & number.
 Initial deposit TK. 2500 (Two thousand and Five Hundred Taka only)

C) Mudaraba Special Notice Account:

 Any company, business entity, debt of the government organization and trust or
any person can open this account.
 This account is operated under Mudaraba principle.
 Any amount can be withdrawn or transferred to al Wadiah current account or any
other accounts after placing a notice of seven days.
 Cheque books are provided for these accounts.
 The profit rate is comparatively lower.

D) Other Deposit Scheme

These are profit bearing deposit account the drawings are restricted in respect of both
the amount of withdrawal and the frequency there of so the payment of interest does
not become any compensating for the banker. Some time the restrictions are ignored
against the depositor's written confirmation to forgo his claim for interest on the total
balance for the whole month of withdrawal. Some Special Saving Schemes are:
a) Mudaraba Hajj Saving Scheme
b) Mudaraba Education Scheme
c) Mudaraba Millionaire Scheme
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People of Bangladesh are the followers of Islam. They are mostly interested to make
interest free deposits. Taking these facts into consideration SIBL a joint venture
Islami bank introduced a monthly instalment based "Mudaraba Millionaire Scheme".

E) Mudaraba Monthly Profit Deposit Scheme:

a) The features of this scheme are as follows: Tk 1, 00.000: 1. 10,000, 1. 20,000 or 1.
25,000 or any amount multiple can be deposited under this scheme.
b) The duration of the amount should be for Five years.
Profits shall be distributed under this scheme as follows:
1,00,000 TK. 900 (Provisional)
1,10.000 TK. 1000 (Provisional)
1,20,000 Tk 1100 (Provisional)
c) The payable profit will become due after 1 month of deposit. But the amount will
be deposited to account in the last week of the month.
d) Generally, a depositor cannot withdraw the amount before 5 years. But in
unavoidable circumstance the depositor can withdraw the amount and in that case the
depositor will have to submit the duly filled application form of the scheme.

F) Young Star Account:

Today's youngsters are going to be the future business personalities of the country.
That's why SIBL Young Star account has been introduced with a view to raising
savings tendency among school-going children from childhood.
 The beneficiaries are entitled to daily profit on daily balance, which directly adds
to the account.
 There is no need to keep minimum balance to run this scheme.
 The scheme holders shall be provided annual charge fee Debit Card of the bank.
 The account holders shall be given attractive gift hampers at the time of opening
that account.
 With the help of school authority and the bank, the students can save the money
the institutions in presence of bank's executives.
 After opening Young Star account, the students can pay school fees through
balance transferring from their account.
SIBL Young Star account holders desiring to achieve higher education in future
would get investment facility from the bank.
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G) Cash Waqf Certificate

In this case the waqf concept of Islam has been borrowed by the Islami bank for
deposit mobilization purpose.
 The nature of account is donation type.
 The account holder operate the account for benevolent purposes.
 He can withdraw any amount from the account for personal use or consumption
 Highest weight age is given to this account in distributing profit.

Closing of an Account
For two reasons, one can be closed.
a) One is by banker: If any customer doesn't maintain any transaction within six
years and the A/C balance becomes lower than the minimum balance, banker has the
right to close an А/С.
b) Other is by the customer: If the customer wants to close his A/C, he writes an
application to the manager urging him to close his A/C. Different procedures are
followed in cash of different types of A/C to close. Fixed deposit A/C is closed after
the termination of the period.
Closing process for current & savings A/C:
 After receiving customer's application the officer verifies the balance of the A/C.
 He then calculates interest and other charges accumulated on the A/C.
 If it bears a credit balance, the officer writes advice voucher. He gives necessary
accounting entries post to accounts section.
 The balance is returned to the customer. And lastly the A/C is closed. But in
practice, normally the customers don't close AC willingly. At times, customers
don't maintain any transaction for long time. Is this situation at first, the A/C
becomes dormant and ultimately it is closed by the bank.

3.2 Bills & Clearing Section

SIBL Local Office branch performs the bill clearing function through Local office.
SIBL Local office acts as the agent of all SIBI branches for the clearing house of the
Bangladesh Bank. There are two types of cheque which are a) Inward cheque b)
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Outward cheque
a) Inward Cheque: Inward cheques are those ones drawn the respective branch
which have been presented on other banks and will be cleared/honoured through the
clearing house of Bangladesh Bank. For example the cheque drawn on SIBL Local
Office Branch then the cheque is called inward cheque of SIBL Local Office Branch.

Account treatment:
Dr. Cr.
Sl No. Particular Amount Sl No. Particular Amount
01 Customers A/C *** 01 SIBL General A/C ***

b) Outward Cheques: Outward cheques are those ones drawn on other bank
branches which are presented on the concerned branch for collection through clearing
house of Bangladesh Bank. These cheques are called outward cheques.

c) Outward bills for Collection (OBC): By OBC, we mean that those cheques drawn
on other which are not within the same clearing house, Officer gives OBC seal on this
type of cheques and later sends a letter to the manager of the branch of the some bank
located in the branch on which cheque has been drawn. After collection of that bill
branch ad vices the concerned branch in which cheques has been presented to credit
the customer account through Inter Branch Credit Advice (IBCA), In absence of the
branch of the same bank, officer sends letter to manager of the bank on which the
cheques is drawn. That bank will send pay order in the name of the branch. This is the
procedure of OBC mechanism.

d) Clearing: The scheduled banks clear the cheques drawn upon one another through
the clearing house. SIBI. is a scheduled Bank. According to the Article 37 (2) of
Bangladesh Bank Order, 1972, the banks which are the member of the clearing-house
are called as Scheduled Banks. This is an arrangement by the central bank where
every day the representative of the member banks gathers to clear the cheques, The
place where the banks meet and settle their dues is called the clearing-house. The
clearing-house sits for two times a working day. The SIBL Local office Br. sends the
instruments through Inter Branch Debit Advice (I.B.D.A). SIBL Local Office acts as
an agent in this case. For this. Local Office branch gives the following entries,
 23

Account treatment: If the instrument is dishonoured, the instrument is returned to the

Local Office branch through I.B.D.A. along with the following entries:

DR. CR.
Sl. No. Particulars Amount Sl. No Particulars Amount
01 SIBL General A/C *** 01 Customer’s A/C ***

Account Treatment
DR. CR.
Sl. No. Particulars Amount Sl. No Particulars Amount
01 Customer’s A/C *** 01 SIBL General A/C ***

e) Receiving Cheques for Collection: In SIBL, 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
collection. Again the date of the cheque should not be more than I day's forward than
the receiving date.
 The amount in figures and words in both sides of the pay-in-slip should be
same and it should also be same with the amount mentioned in figures and words in
the cheque.
 The name mentioned in the cheque should be some in both slides of the pay-
in-slip and it should be the same with the name mentioned in the cheque.
 The cheque must be crossed

f) Cheque and crossing: A "Cheque" is a bill of exchange drawn on a specified

banker and not expressed to be payable otherwise than on demand. (According to
section-6, Negotiable Instrument Act, 1881). A cheque may be classified into:
1. An open cheque which can be presented for payment by the holder at the counter of
the drawer's bank.
2. A crossed cheque which cannot be paid only through a collection banker.

Crossing cheque: A cheque is said to be crossed when two transverse parallel lines
with or without any words are drawn across the face. Crossing may be general, special
 24

or restrictive.

3.3 REMITTANCE OF FUND:

Remittance of funds is ancillary services of SIBIL, It aids to remit fund from one
place to another place on behalf of its customers as well as non-customers of bank.
SIBL has its branches in the major cities of the country and therefore, it serves as one
of the best mediums for remittance of funds from one place to another. The main
instruments used by SIBL, Local Office Branch for remittance of funds.
I. Pay Order/ Banker's check.
II. Demand Draft.
III. Telegraphic Transfer.

Pay Order/ Banker's check: The pay order is an instrument issued by bank,
instructing itself a certain amount of money mentioned in the instrument taking
amount of money and commission when it is presented in bank. Only the branch of
the bank that has issued it will make the payment of pay order. The banker's cheque
must come to the branch for payment wherever it is presented.

Issuing of Pay Order: The procedures for issuing a Pay Order are as follows:
1. Deposit money by the customer along with application form.
2. Give necessary entry in the bills payable (Pay Order) register where payee's name,
date, Po no, etc is mentioned.
3. Prepared the instrument.
4. After scrutinizing and approval of the instrument by the authority, it is delivered to
customer. Signature of customer is taken on the counterpart.
Cancellation of a Pay Order: If a buyer wants to cancel it, he should submit a letter
of instrument in this regard and also return the instrument.

Bank Draft: The person intending to remit the money through a pay order has to
deposit the money to be remitted with the commission which the banker charges for
its services. The amount of commission depends on the amount to be remitted. On
issue of the pay order, the remitter does not remain a party to the instrument
a. Drawer branch
b. Drawer branch
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c. Payee
This is treated as the current liability of the bank as the banker on the presentation of
the instrument should pay the money. The banker event on receiving instructions from
the remitter cannot stop the payment of the instrument. Stop payment can be done in
the following cases:
a) Loss of draft before endorsement in this case, "Draft reported to be lost payee's
endorsement requires verification" is marked.
b) Loss of draft after endorsement: In this case, the branch first satisfies itself about
the claimant and the endorsement in his favor.

Charges: A commission of 0.15% is taken on the draft value & Tk.50 is taken as
postal charge.

3.4 CASH SECTION

The cash section of any branch plays very significant role in general banking
department. Because, it deals with most liquid assets the SIBL Local Office Branch
has an equipped cash section. This section receives cash from depositors and pay cash
against cheque, draft, PO and pay in slip over the counter.

Receiving Cash: Any people want 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 writer in the deposit slip. Then
he put his signature on the slip along with the 'cash received' seal and records in the
cash receive register book against A/C number. At the end of the procedure, the cash
officer passes the deposit slip to the counter section for posting purpose and delivers
the duplicate slip to the clients.
Account Treatment:
DR. CR.
Sl No. Particular Amount Sl No. Particular Amount
01 Cash A/C *** 01 Customers A/C ***

Disbursing Cash: The drawn who wants to receive money against cheque to the
payment counter and presents his cheque to the officer. He verifies the following
information:-
 26

1. Date of the cheque.

2. Signature of the A/C hold.
3. Material alteration.
4. Whether the cheque is crossed or not.
5. Whether the cheque is endorsed or not.
6. Whether the amount figure and in word correspondent or not. Then he checks the
cheque from computer for further verification. Here the following information is
checked.
1. Whether there is sufficient balance or not.
2. Whether there is stop payment instruction or not.
3. Whether there is any legal obstruction (Garnishee Order) or not.
After checking everything, if all are in order the cash officer gives amount to the hold
and records in the paid register.

3.5 LOCKER SERVICE SIBL

Local Office Br is providing facility of locker service for the purpose of safeguarding
the valuable property of customers. The person or the organization that has any
account in bank branch can enjoy this service. They can keep their valuable assets in
banker's custody. Customers have right to look after with a key of their individual
locker provided by bank. SIBL maintains the following types of lockers:

A. Large locker
B. Medium locker.
C. Small locker.
For enjoying this service, clients have to give charge yearly Tk. 1500, Th. 1250 and
Tk.700 for large, medium and small locker respectively.

3.6 Job Responsibilities

During this 10 week period I have worked in accounts opening and closing, clearing
and cash section.
In the accounts opening and closing section I was assigned to do some particular
works.
1. Printing the account holders NID verification copy.
2. Full fill the accounts opening form.
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3. Generating the automated customer ID by using the ABABIL server.

4. Sealing the account opening form.

In the clearing section I used to do the following works:

1. Receiving cheque: At first I receiving cheque from customers. Those customers
come 10:00 AM to 11:30 AM their cheque receives for same day clearing house. This
type's cheque called outward cheque. Then I check these cheques by UV machine.
2. Serialized by cheque order: Above five lakh those cheques are called high value
and below five lakh called regular value cheques. I serialized cheques by their
amount.
3. Scanning cheques: After giving seal, the cheques are prepared for scanning and
then the cheques send for the verified.
4. Inward cheques: After 2 PM inwards cheques come from Bangladesh bank. Then
check the cheques serial number, amount, date. Take the customers permission for
verifying above fifty thousand cheques.
5. Entry the record book those inward cheques which are insufficient fund, date over,
and signature mismatch ete.

During my internship period Bangladesh Bank called back the invalid and obsolete
notes from the banks. So in the cash section I was assigned to process those notes
according to Bangladesh bank’s instruction. For processing I had to do the following
works:
1. Removing the tapes from the note.
2. Separate the notes which were tear into 3 or more than 3 pieces.
3. Applying surgical tape to the tear notes.
4. Sealing the notes and signing the notes.
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 CHAPTER: 4
Findings and Recommendation
4.1 RECOMMENDATION
The bank with vast and complex banking system, it is very difficult for me to
recommend. I have the practical experience in Social Islami Bank Limited (SIBL) for
only three months, with my little experience in shortcomings regarding operational
activities of the bank. Based on my observation I would like to recommend the
following suggestions:
 Sufficient number of ATM booth might be established in different location to
reach out he customers even further and satisfying their demand.
 Improvement in customer service is very much essential. To compete with other
banks, customer service should be improved as online service, internet service, 24
hours customer service etc. New technologies should be taken for effective
services.
 SIBL may also indulge in Tele Marketing. This will smooth the progress of them
to expand their sales.
 As one of leading Banks in Bangladesh, SIBL Bank should provide equal
emphasis in each department of banking service.
 SIBL should differentiate its services adopting the modern facilities and diversity
products.
 SIBL should appoint customer service officers in all branches. They solve
customer problem, answer inquiry of customers etc.
 Empower the employee through training and decentralize the power, while they
will become confident and more energetic.
 Review market conditions and take precautionary measures towards facing
abnormal market situation and vulnerability of investments of the Bank.
 Attendance system needs to update which will help the transparency and time
keeping to them. Performance of IT division should be improved which is badly
in need for them.
 An uninterrupted network system has to be ensured. It will save the officials from
much hassle and will save time.
4.2 CONCLUSION
Now a day banking organizations are 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 that 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. Family Empowerment micro credit and micro enterprises program must
be designed in a manner so as to make a) finance, b) production, c) marketing, d)
trading, e) local specific survey and research as well as moral integrity in one
package. In SIBL approach, credit conveys the totality in life and clearly linked to
social context and cultural setting in conformity with Shariah. There is a better chance
in provision for social subsidy. De-secularizing credit may lead to re-writing new
economies. It is thus felt that the linking credit to social goals and assignments will
have far-reaching theoretical implications for development of an alternative concept
of new theories of income, output and employment. This bank expresses its sincere
thanks to the government of the Peoples 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. SIBL 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.