General Banking System On First Security Islami Bank LTD

General Banking system
of
First Security Islami Bank Limited
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Chapter-One
Introduction
1. Introduction:
Generally by the word Bank we can easily understand that the financial institutions deal with money.
But there are different types of banks like; Central Banks, Commercial Banks, Savings Banks, Investment
Banks, industrial Banks, Cooperative Banks etc. But when use the term Bank without any prefix, or
qualification it refers to the commercial banks. Commercial banks are the primary contributor to the
economy of a country. So we can say commercial banks are a profit making institution that holds the
deposit of the individuals & business in checking & savings account and than uses these funds to make
loans. For these, people and government are very much dependent on these banks. As banks are profit
earning concern; they collect deposit at the lowest possible cost and provide loans and advances at higher
cost. The differences between two are the profit for the bank.
Banking sector is expanding its hand in different events every day. At the same time the banking process
is becoming faster, easier and the banking area becoming wider. As the demand for better services
increases day by day, they are coming with different innovative ideas and products. In order to survive in
the competitive field of the banking sector, all banking organization are looking for better service
opportunities to provide their fellow clients. As a result, it has become essential for every person to have
some idea on the bank and banking procedure.
First Security Islami Bank Ltd is one among the best and most important bank for the Banking system of
Bangladesh. Like other Banks & Financial Intermediaries, they perform a critical function of facilitating
the flow of funds from surplus units to deficit units. Commercial banks basically focused on commercial
lending. From the end of 19th century they are providing diversified services.
Like other Commercial banks FSIBL also have different sections such as section focusing on lending; a
section helps in foreign trade, a section that collects deposits.
1.1 Significance of the Report
This Internship Report is an important partial requirement of four year BBA graduation program. This is
because knowledge and learning become perfect when it is associated with theory and practice. By this
Internship program students can establish contacts and networking. Contacts may help to get a job in
practical life. That is, students can train and prepare themselves for the job market. A poor country like
Bangladesh has an over whelming number of unemployed educated graduates. As they have no internship
experience they have not been able to gain normal professional experience of establish networking
system, which is important in getting a job. Therefore, it is obvious that the significance of Internship is
clearly justified as the crucial requirement of four year BBA graduation.
1.2 Scope of the report
The First Security Islami Bank Limited is one of the leading Banks in Bangladesh. The scope of the study
is quiet wide as this report has covered the overall banking activities. This report has been prepared
through extensive discussion with company employees and customer. While preparing this report, I had a
great opportunity to have depth knowledge in all the human resources departmental activities practiced by
the First Security Islami Bank Limited.
It also includes the organizational structure and policy of First Security Islami Bank Limited. The scope
of this report is limited to the overall description of the company, personal asset-products, organizational
setup, its services, and remuneration poli customer satisfaction level.
1.3 Objectives of the Study
Objectives
1
To evaluate the performance of General Banking of FSIBL
To Examine the credit management system of FSIBL
To find out the foreign exchange activities of FSIBL
To observe the working environment of FSIBL banks.
To explore the relationships between performance appraisal & employee commitment.
To find out the existing limitation & provide some recommendation to overcome these barriers.
1.4 Methodology:
This is an Exploratory research study to analyze the employee performance of the FSIBL. The method
which I have followed of the study is sample survey.
Source of data:
I have collected the data from the following sources, which has helped me to make this report.
The source divided into two parts:
Primary:
Interview was the basic technique that was employed to collect primary data from people within the
organization. For the procedure of different banking operations, I had observed the operations and worked
with the officers at the same time. I had interviewed FSIBL Officials for getting more information.
Secondary:
Secondary data was collected from the annual report, journal, FSIBL report, FSIBL employee training,
lecture sheet & the website of First Security Islami bank limited.
Relevant data for this report will be collected primarily by direct investigations of different records,
papers, documents, operational process and different personnel. The interviews were administered by
formal and informal discussion. Structured questionnaire has been used. Information regarding office
activities of the bank has been collected through consulting bank records and discussion with bank
personnel.
Data sources:
The information and data for this report have been collected from both the primary and secondary
sources.
The Primary sources are as follows:
1
Face-to-face conversation with the respective officers and stuffs of the branch and head office.
Face-to-face conversation with clients visited the branch.
Practical work experience in the different desk of the department of the branch covered.
Questionnaire.
The Secondary Sources of data and the information are:

1
Annual Report of FSIBL
Website of the FSIBL.
Various book articles regarding general banking functions, Foreign exchange operations and
credit policies.
Different procedure manual published by FSIBL
Different circular sent by head office or FSIBL.
1.5 Sampling Deign

All of the branches of First Security Islami Bank Limited in Bangladesh are the population & FSIBL
Actually sample frame is very confidently for organization. So it is totally invisible to introduce. For the
purpose of this study purposively selected 56 respondents in which 30 personnel & 26 clients /customers
for collecting appropriate data relevant with study objectives.
1.6 Data Analysis and Reporting
Both quantities & qualitative techniques used to data processing, presentations (percentile, control,
dispersion, graphical prostrations, etc) & discussed in different times with concerned authority are used to
preparing the report and finally submitted to evaluate my report.
1.7 Limitation of the Study
In my internship period I have found some barriers to complete the work in a conducive way within
shorter period of time. This is mentioned below:
1
Difficulty in assessing data of its internal operations.
Non unavailability of some preceding and latest data.
Time length was not sufficient to judge everything judiciously.
Assessment was limited to most of the corner and thus it was not possible to observe all issues
related with job performance.
Chapter-Two
FSIBL at a Glance
2.0 Background of First Security Islami Bank Limited

The First security Islami Bank Limited is the third generation private sector Bank in Bangladesh. FSIBL
is fully owned by Bangladeshi entrepreneurs. The bank was opened on August 29, 1999 but the first
branch at 23, Dilkusha Commercial Area, Dhaka started commercial operation on August 29, 1999. The
2nd Branch was opened on 11 November 1999 at Khatungonj, Chittagong.
At present, FSIBL has been carrying on business through its 52 branches and twenty (20) branch are to be
launched immediately spread all over the country. FSIBL was the first domestic bank to establish agency
arrangement with the world famous Western Union in order to facilitate quick and safe remittance of the
valuable foreign exchanges earned by the expatriate Bangladeshi nationals. FSIBL was also the first
among domestic banks to introduce international Master Card in Bangladesh. In the meantime, FSIBL has
also introduced the Visa Card and Power Card. The Bank has in its use the latest information technology
services of SWIFT and REUTERS. FSIBL has been continuing its small credit program for disbursement
of collateral free agricultural loans among the poor farmers of Agrabad area in Chitta gong district for
improving their lot. Alongside banking activities, FSIBL is actively involved in sports and games as well
as in various Socio-Cultural activities. Up to September 2006, the total number of workforce of FSIBL
stood at 2449, which include 1689 officers and executives and 550 staff.
2.1 Philosophy of FSIBL
At present the bank has as many as 52 branches across the country and it is committed to become equal
service providers compatible with the norms of commercial schedule bank. It renders all types of
personal, commercial and corporate banking services to its customers within the purview of the Bank
Companies Act, 1991 and in line with the directives and policy guidelines laid down by Bangladesh bank.
2.2 Vision of FSIBL
Ensuring highest standard of clientele services through best application of latest information technology,
making due contribution to the national economy & establishing ourselves firmly at home& abroad as a
front ranking bank of the country are our cherished vision.
2.3 Mission of the FSIBL
Efforts for expansion of our activities at home & abroad by adding new dimensions to our banking
services are being continued unabated. Alongside, we are also putting highest priority in ensuring
transparency ,accountability improved clientele service as well as to our commitment to serve the
society ,which we want to get closer & closer to the people of all strata. Winning an everlasting seat in the
hearts of the people a caring companion in uplifting the national economic standard through continuous
up gradation & diversification of our clientele services in line with national & international requirements
is the desired goal we want to reach.
2.4 Goal of FSIBL:

Goal of FSIBL to establish & maintain the modern banking techniques to ensure the soundness &
development if the financial system based on Islami principles &to become the strong efficient.
1
To be most caring & Customer friendly & service oriented bank.
To create a technology based most efficient banking environment.
To ensure sustainable growth.
To add effective contribution of the national economy.
2.5 Performances of FSIBL

First Security Islami Bank Limited closed the year 2009 recording significant growth in every sector
despite volatile economic atmosphere of the country. During the year 2009 Deposit Mobilization,
enhancement of loans and effective risk management has placed the bank in sound footings. Besides,
Bank has maintained a strong market position by adding value to the shares. It may be said without
hesitating that overall performance of the bank
2.6 Reserved Capital
The Reserve fund increased to 96.10 million during the year by registering 13.73 percent increase over
last year Tk.84.50 million .
2.7 Profit and operating result
First Security Islami Bank Ltd generated an operating profit of TK. 421.90 million in 2008 and net profit
after tax increased by 126.13 percent to TK. 30.60 million in 2009 after making provision for loans loses
and income tax
2.8. Foreign Exchange
Bank gives paramount importance in its foreign exchange business to ensure profitability. Bank has been
continuing to extend special importance on foreign business from the beginning of its establishment
which is still prevailing during the year. To look after the business and also to ensure prompt service to
the import and export officers having exposure and expertise in foreign exchange, posted both Head
Office and Authorized Dealer branches.
2.9.Information Technology (IT) and Automation
All the branches of the FSIBL are fully computerized. New software is now in use to provide faster,
accurate and efficient service to the clients. The bank is continuously striving for better services through
extensive automation of its branches. They have already launched One Branch Banking through on-line
connectivity. The bank has set up a full-fledged IT division to keep abreast of the latest development of IT
for better service in the days to come.
2.10.Organizational structure of FSIBL
Functional oriented structure Organization structure plays an important role on the profitability of any
organization. First Security Islami Bank Limited is a centralized organization. Its activities are designed
on the basis of traditional banking business, such as credit, international division, investment,
administration, and operation etc. FSIBL has a formal organizational structure that is highly specialized
and centralized.
Organizational setup of the First Security Islami bank Limited is consisting of three organizational
domains. Firstly the central top management, which contains Board of Directors, Managing Director,
Additional Managing Director and Deputy Managing director, Major responsibilities of this are to take
central decision and transmit it to the second step. Secondly, Central executive level management, which
contains executive vice president, senior vice president, vice president and Assistant vice president. Major
responsibilities of this part are to supervise and control division/ department. Thirdly, branch operation
management, which contains branch manager and other mid/ lower level management. Major
responsibilities of this part are to the 52 branches of this bank and report to the Head office from time to
time.
A Brief Profile of FSIBL Uttara Branch:
I am doing my Internship in Uttara Branch. The branch is located at Uttara .Plt#.10 Garib-A-Newaz
avenue Sector:13 Uttara Model Town Uttara Dhaka,.The office floor is nicely inaccurate that can
accommodate good number of customer comfortably.
The branch has efficient human resources that can meet up customers needs. Otherwise workload is
distributed properly. Besides interpersonal relationship is remarkable.
Most noted strength is customer service. Prompt, cordial & enthusiastic service satisfies most of the
customers. Flexible banking service attracts more clients doing banking transactions with the branch. In
some cases, customers coming outside the banking hour can honor the cherub & others without delay.
Everybody performing own works very well. Under all of their efficient handling, the branch has already
been able to introduce itself as one of the best performers among all other branches of FSIBL. FSIBL
gives interns a good value. They assign some specific jobs that are to be done which a fixed period of
time. With the initiation of good job in FSIBL of Uttara branch, they reposed confidence on me and
therefore assigned various other jobs such as general banking, foreign exchange. In fact overall banking
practices were entrusted to me within this short period of three months
2.11. Hierarchy of Position Structure of FSIBL
Managing Director
Additional Managing Director
Deputy Managing Director
Senior Executive Vice President
Executive Vice President

Senior Vice President
Vice President
Senior Assistant Vice President
Assistant Vice President
Senior Principal Officer
Principal Officer
Executive Officer
Junior Officer
Assistant Officer
2.12. Board of Directors of the FSIBL
Chairman
Alhaj Md. Saiful Alam
First Security Islami Bank Ltd.
Managing Director
S. Alam group and Industries Ltd.
Chittagong
Vice Chairperson
Ms. Sarwar Jahan Maleque
First Security Islami Bank Ltd.
Director
M/S Jisco Bangladesh Ltd.
M/S Jahan Enterprise
Directors
Mrs. Sharmin Fatema
Alhaj Mortoza Siddique Chowdhury
Mr. Hamidul Haq
Mrs. Atiqun Nesa
Mr. Md. Sharif Hussain
Mr. A. K. M. Ali Johar
10
Mr. Md. Wahidul Alam Seth
Mr. Shahidul Islam
Mr. Mohammed Oheidul Alam
Dr. Muhammad Loqman
Mrs. Shamshad Jahan
Managing Director
Mr. A. A. M. Zakaria
Board & Company Secretary

Mr. Abdul Hannan Khan
2.13. Branch network of FSIBL
FSIBL Bank has fifty two branches around whole over the Bangladesh. The names of the branches are
following according division wise:
In Dhaka division they have twenty two branches
Sl. No.
Branches
1.
Motijheel Branch
2.
Dilkusha Branch
3.
Mohakhali Branch
4.
Bongshal Branch
5.
Dhanmondi Branch
6.
Gulshan Branch
7.
Mirpur Branch
8.
Banani Branch
9.
Topkhana Road Branch
10.
Bisharoad Branch ,Bashabo
11.
First Security Islami Bank Branch (Dokhin Khan)
12.
Donia Branch
13.
Shananibas Branch
14.
Moksudpur Branch
11
15.
College Gate Branch
16.
Shofipur Branch
17.
Kazipare Branch
In Chittagong division they have nine branches:

Sl. No.
Branches
1.
Agrabad Branch
2.
Khatungonj Branch
3.
Jublee Road Branch
4.
CoxBazar Branch
5.
Protrok Mor Branch
6.
Nozumia Hat Branch
7.
Karanir Hat Branch
8.
Bahaddarhat Branch
9.
Dobashi Bazar Branch
In Sylhet division they have four branches:

Sl. No.
Branches
1.
Sylhet Branch
2.
Bishawnath Branch
3.
MoulviBazar Branch
4.
Amborkhana Branch
In Khulna division they have two branches:

Sl. No.
Branches
1.
Jessore Branch
2.
Khulna Branch
In Rajshahi division they have three branches:

Sl. No.
Branches
1.
Bogra Branch
2.
Rangpur Branch
3.
Rajshahi Branch
2.14. Management Structure of FSIBL
12
For any financial and non financial organization Management is the most valuable and important
resources of any kind of organization. And a well-organize management provides the organization to
reach its ultimate goal. Management means planning, organizing, staffing, directing and controlling of all
financial and non financial resources of an organization. Different aspects of management practice in
FSIBL are discussed below.
2.14.1 Planning:
FSIBL has done its planning within the purview of the corporate plan. The overall planning approach of
FSIBL is Top-down. Each branch can plan according to the goal imposed by the corporate level. It
doesnt plan independently. And, FSIBL has a planning division. This department is mainly responsible
for the overall planning.
2.14.2. Organizing
Organizing of the First Security Islami Bank Limited is based on Departmentalization. The organization is
divided into twelve departments headed by Executive vice President or Senior Vice President. In the First
Security Islami Bank Limited the whole operation is centralized and authority is delegated by written
guidelines. These guidelines are:
Operational manual approved by Head Office, where each aspect or banking operation is elaborately
defined.
1
Advance manual including advances limit for different management level.
Bad and doubtful recovery manual.
Code of conduct.
Foreign banking guidelines.
Central bank directives.
Different management position holders in departments and branches practice their authorized
power in different cases with administrative loophole.
2.14.3. Staffing
The recruitment of FSIBL is done in three ways. One as a probationary officer for the management
program and it has probation period of one year. Second way of recruitment is to recruit non-probationary
officer who joins as an assistant officer. The career path of an assistant officer is lengthier than
probationary officer. The third way of recruitment is recruitment of staff and sub-staff such as typist,
messenger, driver, guard, attendant, cleaner and other lower level positions. Promotion policy of FSIBL is
basically based on seniority basis. Sometimes, employees are promoted to the higher position for their
outstanding performance. However, it is found that the average length of a position held by an employee
is around five years.
2.14.4. Directing and controlling
13
The management approach in FSIBL is top-down or authoritative. Information just seeks through lower
management layer. Works are designed in such a way that can not leave without clearing the tasks as he is
assigned for a day. Sitting Management in all office is done in way that the superior can monitor the
subordinate can all time. Budgeting, rewarding, punishing etc. are also practiced as control mechanism.
2.14.5. Human resource Practices in FSIBL
Employees are the core resources of any organization. Without them, one cannot run their organization.
And, human resource is concerned with the growth and development of people toward higher level of
competency, creativity and fulfillment. It help employees become better more responsible person and then
it tries to create a climate in which they contribute to the limits of their improved abilities. It assumes that
expanded capabilities and opportunities for people will lead directly to improvements in operating
effectiveness. Essentially, the human resource approach means that people achieve better result.
2.14.6. Recruitment
The set-vice rule of FSIBL states the recruitment policy of the bank. In general the board of directors
determines the recruitment policy of bank from time to time. The minimum entry level qualification for
any official position other than supportive management is a Bachelors degree. However, informally the
management prefers a minimum masters degree or BBA degree for the appointed of probationary
officers in the Executive officer position. The recruitment for entry level positions begins with a formal
written test. After successful completion of the written test, a personal interview is conducted for the
successful candidates by a panel of experts comprising of renowned and prominent bankers of the
country.
2.15 Core values
FSIBL score values consist of 6 key elements. These values bind our people together with an emphasis
that our people are essential to everything being done in the bank.
2.15.1 Integrity
1
FSIBL protects & safeguards all customer information.
FSIBL treats everyone in an equitable & consistent manner
FSIBL creates an environment which earns & maintains customer trust.
2.15.2. Open communication

1 FSIBL builds customer relationships on integrity &respect.
2
FSIBL offers a full line of products &excellent service.
FSIBL is committed to the prosperity of the customers & shareholders.
2.15.3. Performance driven

In FSIBL customers & employees are judged in terms of their performance.
14
2.15.4. Continuous self Improvement

Continuous learning self challenge &strive make ways for self improvement of work force at FSIBL.
2.15.5. Quality
FSIBL offers hassle free better service timely.
FSIBL builds-up quality assets in the portfolio.
2.15.6. Teamwork
Interaction, open communication, and maintaining a positive attitude reflect FSIBL s commitment to
supportive environment based on teamwork.
2.16 Division of FSIBL
1
Audit & Inspection Division.
ATM Card Division
Board Secretariat
Budget & Monitoring Division.
Credit Division-1.
Credit Division. -2.
Credit Card Division.
Classified Loan Recovery Division.
Financial Administration Division.
10 General Banking Division.

11 Human Resources Division.
12 International Division.
13 Information System & Technology Division.
14 Law & Recovery Division.
15 Marketing Division.
16 Merchant Banking Division.
17 Public Relations Division.
18 Protocol Division.
19 Reconciliation Division.
20 System & Operations
15
Chapter Three
General Banking of FSIBL
16
3.0 Product & Service of FSIBL:

First Security Islami Bank Limited is providing modern banking facilities to the customer. It is committed
to fulfill every possible customer need with high efficiency and satisfaction. Its team of dedicated
professionals is committed to provide an unparalleled service and to bring maximum benefits for the
customers, the shareholders and the society at large. Its a great pleasure of First Security Islami Bank
limited to introduce following services:
Deposit Product of FSIBL:
Al-Wadeah Saving Account
Mudaraba Saving Account
Mudaraba Short Term Deposit
Mudaraba Term DepositOne Month
Three Month
Six Month
One Year
Two Year
Three Year
11.Mudaraba Monthly Income Scheme
12.Mudaraba Monthly Savings Scheme
13.Mudaraba Super Savings Scheme
14.Mudaraba Multi plus Savings Scheme
15.Mudaraba Haji Scheme
16.Mudaraba Education Saving Scheme.
17.Mudaraba Waqf Cash Deposit
18.Mudaraba Special Savings (Pension)
19.Mudaraba Muhar Savings
Deposit mix of FSIBL
17
Fig 3.1: Deposit mix of FSIBL

Investment Product of FSIBL
1. Izara Bill Baia (General)
2. Izara Bill Baia (HB)
3. Izara Bill Baia (Staff HB)
4. Bai-Muajjal (BAIM)
5. Izara (LF)
6. House Hold Durable Scheme (HDS)
7. Baia-Muazzal (General/FO)
8. Baia-Muazzal (WO)
9. Baia-Muazzal (Export)
10. Murabaha Import Bills (MIB)
11. Murabaha Post Import (MPI)
12. Trust Receipt (TR)
13. IBP
14. Musharaka Pre-Shipment (ECC)
15. Musharaka Pre-Shipment (PC)
16. Local Documentary Bill Purchase (LDBP).
3.1 Deposits service of FSIBL
Mudaraba Monthly Income Scheme
Bangladesh is a developing country. But in our country opportunity of is very low. People of our country
always try to save their excess money and they are looking for where they can deposit the money.
18
According to their demand FSIBL started this monthly income scheme.

Highlights of the Scheme:
1
Minimum deposit Tk. 25000/
Higher monthly income for higher deposits.
The scheme is for a 5 years period.
Monthly income will be credited to the depositors account on 5 th of each month.

Deposit Account
Income
Tk. 25,000
Tk. 250
Tk. 50, 000
Tk. 500
Tk. 1,00,000
Tk. 1000
Tk. 2,00,000
Tk. 2000
Tk. 5,00,000
Tk. 5000
Tk. 10,00,000
Tk. 10,000
Fig: Monthly income to deposit amount
Objective of the scheme:

1
An account is to be opened by filling up a form.
The bank will provide to the customer a deposit receipt after opening the account. This receipt is
non-transferable.
If the deposit is withdrawn before a 5 years term, the saving interest rate will be applicable and
paid to the depositor, however, no interest will be paid if the deposit withdrawn within 1 years of
paid to the customer will be adjusted from the principal amount.
A depositor can avail loan up to 80% of the deposit amount under this scheme. In this case,
interest will be charge against the loan as per banks prevailing rate. During the tenure of the loan,
the monthly account until liquidation of the loan amount inclusive of profit.
The Government taxes will be paid, if necessary taxes will be paid, if necessary, by the client.
Mudaraba Super Savings Scheme

Saving helps to build up capital and is the prime source of business investment in a country. Investment
takes the country towards industrialization, which eventually creates wealth. That is why savings is
treated as the very foundation of development. To save, FSIBL offers Super Saving Scheme.
Terms and Conditions of the scheme:
1
Any individual, company, educational institution, government organization, NGO, trust, society
etc may invest their savings under this scheme.
The deposit can be made in multiples of Tk. 10,000/=
The period of deposit is for six years.
Any customer can open more than one account in a branch in his name or in joint names. A
deposit receipt will be issued at the name of opening the account.
19
If the deposit is withdrawn before six years terms, then savings interest rate +10% will be applied
before payment is made. However, no interest will be paid if the deposit is withdrawn within 1 st
year.
A depositor can avail loan up to 80% of the deposited amount under this scheme.
Incase of death of the depositor, before the term, the deposit (with saving rate +1%) will be given
to the nominee. In the absence of nominee, the legal heirs/successors will be paid on production
of succession certificate.
Incase of issuing a duplicate deposit receipt the rules of issuing duplicate receipt of term deposit
will be applicable.
The client will pay the Government taxes if necessary, in future.
Some examples are given in the table below. Any amount can be deposited in multiples of Tk. 10,000/=
Deposit
Terms
10,000/=
6.5 Years
20,000/=
6.5 Years
50,000/=
6.5 Years
1,00,000/=
6.5 Years
2,00,000/=
6.5 Years
5,00,000/=
6.5 Years
Mudaraba Multiplus Savings Scheme
Payable at maturity
Double
Double
Double
Double
Double
Double
Payable Amount
20,000/=
40,000/=
1,00,000/=
2,00,000/=
4,00,000/=
10,00,000/=
Saving helps to built up capital and capital is the prime source of business investment in a country.
Investment takes the country towards industrialization that eventually crates wealth. That is why savings
is treated as the very foundation of development. To create, more awareness and motivate people to save,
FSIBL offers Multi Plus Savings Scheme.
Terms and Conditions of the Scheme
1
Any individual, company, educational institution, government organization, NGO, trust, society
etc may invest their savings under this scheme.
The deposit can be made in multiples of Tk. 10,000/=
The period of deposit is for 10 years. But he deposit can be withdrawn at any year with profit. As
an example of 1 year but before 2 years then deposit with interest with paid for 1 year only. The
same rule will apply for other years. If deposit is withdrawn before 1 st year then no interest will
be paid.
Any customer can open more than one account in a branch in his name or in joint names. A
deposit receipt will be issued at the name of opening the account.
The depositor can avail loan up to 80% of the deposit under this scheme.
Incase of issuing a duplicate receipt the rules of issuing a duplicate receipt of terms deposit will
be applicable.
20
Incase of death of the depositor, before the term, the depositor (with saving rate) will given to
the nominee. In the absence of nominee, the legal heirs/successors will be paid on production of
succession certificate.
The government taxes will be paid, if necessary, by the client, in future.
Some examples are given in the table below. Any amount can be deposited in multiples of Tk. 10,000/=
Amount
Year
01
02
03
04
05
06
07
08
09
10
10,000/=
20,000/=
Year wise payable to customer
10,910/=
21,820/=
12,012/=
24,024/=
13,346/=
26,693/=
14,952/=
29,904/=
16,714/=
33,429/=
18,765/=
37,530/=
21,499/=
42,998/=
25,116/=
50,231/=
28,270/=
56,540/=
31,782/=
63,744/=
50,000/=
1,00,000/=
54,550/=
60,061/=
66,731/=
74,761/=
83,572/=
93,824/=
1,07,496/=
1,25,578/=
1,41,351/=
1,59,361/=
1,09,100/=
120,122/=
1,33,463/=
1,49,522/=
1,67,144/=
1,87,649/=
2,14,992/=
2,51,156/=
2,82,702/=
3,18,721/=
Mudaraba Monthly Savings Scheme

The savings amount is to be deposited within the 10 th of every month. Incase of holidays the deposit
amount is to be on the following day. The deposit may also be made in advance.
The depositor can have a separate account in the bank from which a standing instruction can be given to
transfer the deposit in the schemes account.
Incase the depositor fail to make the monthly installment in time, then 5% on overdue installment amount
will be charged. The charge will be added with the following month(s) installment and the lowest charge
will be Tk. 10/=.
Rules
A form has to be filled at the time of opening the account. No introduction is attested photographs are
advised.
1
The depositor can select any of the installment amounts, which cannot be subsequently changed.
Incase of minors the guardians may open and supervise the account in this favor.
A single person can open more than one account for saving under several interest rates.
The depositor should notify the bank immediately on any change of address.
The government tax will be deducted from the interest accumulated in this scheme.
If necessary, at the request of the depositor, the scheme can be transferred to a different branch of
the same bank.
The bank reserves the right to change the rules and regulations of the scheme as and when
deemed necessary.
21
Term
Monthly
Monthly
Monthly
Monthly
Installment
Installment
Installment
Installment
(Tk.)
(Tk.)
(Tk.)
(Tk.)
500
1000
2000
5000
5 years
39041
78082
156164
390411
8 Years
74202
148808
2946809
742024
10 Years
105095
210190
420380
1050952
12 Years
144461
288923
577847
1444618
Total Benefit
Mudaraba Hajj Scheme

Ninety percent of people in our country are Muslim. Hajj is mandatory of every rich and physically fit
Muslim people. As a Islami Bank FSIBL offer Hajj Scheme to the customer to fulfill the desire of
religious minded people.
One can open this type of scheme in different maturity by paying monthly installment.
Education Saving Scheme
The most gratifying experience for parents are proper education of their children. Educational expense is
rapidly increasing and therefore appropriate planning needs to be done by all parents. FSIBL offers you
Education Saving Scheme to assist in financial planning well ahead in for there childrens higher
education.
Terms and Conditions of the Scheme:
1
Deposit of Tk. 2, 50,000/= and multiples thereof at a time will be accepted under the scheme.
The instrument shall be issued for 7 years, 10 years, 15 years or 20 years term.
The deposit payable at maturity with benefit either in lump sum or on monthly basis as education
allowance for 6 years starting after the completion of respective term.
To avail the education allowance, the depositor is required to deposit the receipt to pay the
amount to his/her nominated person on monthly installment basis as or instrument with the bank
duly discharged by him with the written instruction stipulated in the scheme.
Normally no withdrawn will be allowed before maturity. But, if any depositor intends to
withdrawn his deposit before maturity, the following rules will be applicable:
(a)If withdrawn is made before seven years, interest will be calculated and paid as per prevailing saving
rate.
(b)If withdrawn is made at any time after seven years, the total amount payable at maturity of the
immediate preceding terms will be paid along with interest for the fractional period at prevailing saving
rate.
22
The depositor can avail loan up to 80% loan under the scheme.
Incase of issuing duplicate receipt the rules of issuing duplicate receipt of terms deposit will be
applicable.
Example Table
Term
Initial Deposit (Tk)
Amount
payable
7 Years
10 Years
15 Years
20 Years
25,000/=
25,000/=
25,000/=
25,000/=
maturity
55,000/=
77,000/=
1,36,000/=
2,40,000/=
at Education
Allowance P/M
1,000/=
1,500/=
2,500/=
4,500/=
Debit Card
The Bank has launched Master card among its customers in joint collaboration with DBBL Bank Ltd.
FSIBLs card is accepted at more than 5000 outlets spread around the country; this card can be used in
purchase of everyday necessities to luxurious goods and services. This wide range of merchants include
hotels, restaurants, airlines, travel agents, departmental stores, hospitals, clinics & diagnostic centers,
jewelry shops, electronic shops, health clubs any many more. Numbers of outlets are increasing day by
day to cater to growing needs.
FSIBL card provides cash withdrawal facility up to 50% of your credit limit; this may be availed from
ATM or from any branches of FSIBL Ltd. With a nominal cash withdrawal charge.
3.2 Investment service of FSIBL Ltd.
Izara Bill Baia (General)
Short term, medium term & long term investments allowed to individual/ firm/industries for a specific
purpose but for a definite period and generally repayable by installments fall under this head. These types
of lending are mainly allowed to accommodate financing under the categories.
I. Large & Medium Scale Industry and
II.
Small & Cottage Industry.
Very Often Terms Financing for

I. Agriculture &
II.
Others are also included here.
Features:
1
The Islamic Shariah principle of investment under Izara Bill Bia is Musharaka Mutanakasha,
which means the rent, shall be devisable as per equity involved, unpaid rent if any shall not be
treated as equity and the asset shall be acquired on participation ownership.
Possession of the asset shall be passed on to the client for use as per practicability.
23
Bank shall retain the ownership till payment of equity portion of the bank along with rental.
The ownership of the asset shall gradually pass on to the client upon payment of banks equity
involved and on the reverse upon increase of clients equity.
Rent shall not be compounded in any case i.e. no rent shall be charged on unpaid/outstanding
rent. The client shall reduce incidence of rent proportionately with the reduction of equity of the
bank of payment of installment.
Since it is a kind of Musharaka, cash can be paid to the credit of clients account. However, the
purpose for which cash is disbursed must be ensured from the point of banking.
Incase of need the equity portion may be increased or decreased by making lump sum payment by either
side. Very often the client may require funds to run the equipments/machineries for short period as
working capital which may be paid to the debt of respective Izara Bill Bia Account if found feasible and
covered by the value of assets.
Izara Bill Baia (HB)
Investment allowed to individual/enterprises for construction of house commercial fall under this type of
investment. The amount is repayable by monthly installment with a specified period. Such investment is
known as Izara Bill Bia (HIB). No investment for construction of residential house building shall be
accommodated to the banks customer where is no other business consideration.
Izara Bill Baia (Staff HB)
Investment allowed to our bank employees for purchase/construction of house shall be known as
investment (Staff HB).
Bai-Muajjal (BAIM)
It is a mode of investment under which the bank at the instance of the client procures certain goods
permissible under Islamic Shariah and the law of the country and sells those to the client at a price
payable at a fixed future date in lump sum or in fixed installments and the goods are delivered in advance
and the fixed price is paid later or as agreed by the parties.
Important Features
1
Goods are to be purchased from a third party excluding sister concern(s) of the client.
Ownership of bank on the goods be established at least for a single moment before selling the
same to client.
Like Murabaha, bank is not bound to declare cost of goods and profit mark up separately.
It is a credit sale by which ownership of the goods is transferred by the bank to the client before
receipt of sale price. That is payment is deferred for a fixed period. Bank may ore may not retain
possession of the goods considering the security the security aspects. (However, in our bank,
generally goods are delivered to the investment client but sufficient collateral is kept).
24
Murabaha
Financial accommodation to individual/firm for trading as well as for wholesale or to industries as
working capital against pledge of goods as primary security fall under this head of investment. It is also a
continuous investment and like the above allowed under the categories.
I. Commercial Lending
II.
Working Capital
Bai-Murabaha Investment
Bai-Murabaha may be defined as a contract between a buyer and seller under which the seller certain
specific goods permissible under Islamic Shariah and the law of the land to the buyer at a cost plus agreed
profit payable in cash or an any fixed future date in lump sum or by installments. The profit marked-up
may be fixed in lump sum or any percentage of the cost price of the goods.
a. Ordinary Bai Murabaha
If there are only two parties, the seller and the buyer, where the seller as an ordinary trader purchases the
goods from the market without depending on any order and promise to buy the same from him and sells
those to a buyer for cost plus profit, then the sale is called ordinary Bai-Murabaha.
b. Bai-Murabaha on order and promise
If there are three parties, the buyer, the seller and the bank as an intermediary trader between the buyer
and the seller, where the bank upon receipt of order from the buyer with specification and a prior
outstanding promise to buy the goods from the bank, purchases the ordered goods and sell those to the
ordering buyer at a cost plus agreed profit, the sale is called Bai-Murabaha on or promise, generally
known as Murabaha.
Features
Bank shall purchase the goods so that ownership of bank on the good is established at least for a moment.
The bank may also engage the investment client as buying agent as per previous agreement to purchase
the goods from third party on behalf of the bank who after purchase shall handover possession of the
same to the bank at least for a second and there after the same shall immediately taken into pledge of the
bank. (Please refer to engaging investment client as buying agent for detailed procedure).
1
There must be three parties in order to perform buying a selling under Murabaha (a) Bank (b)
Seller of Goods (c) Purchaser of Goods. Goods however must not be purchased from client of
from any of its sister concern. Goods must also be halal as per Shariah.
A commodity in the true sense of the term must be involved in buying and selling.
There must be an agreement between the bank and the client. Cost of the goods sold and the
amount of profit added there with should be separately and clearly mentioned in the Murabaha
Agreement.
25
After procurement of the goods the client shall take delivery of the same signing on the reverse of
the purchase schedule and immediately there after the bank shall take the goods in to pledge as
security of banks investment.
Izara Bill Baia (HP)

Izara Bill Baia (HP) is a type of installment investment under which the purchaser agrees to take the
goods on hire at a stated rental, which is inclusive of the repayment of principal as well as profit for
adjustment of the investment within a specified period.
Izara (LF)
Izara (LF) is one of the most convenient sources of acquiring capital machinery and equipment whereby a
client is given the opportunity to have an exclusive right to use an asset usually for an agreed period of
time against payment of rent. It is a term financing repayable by installment.
House Hold Durable Scheme (HDS)
It is a special investment scheme of the bank to finance purchase pf consumer durable to the fixed income
group to raise their standard to living. The customers allow the investments on soft terms against personal
guarantee and deposit of specified percentage of equity. The investment is repayable by month installment
within a fixed period.
Bai-Muazzal (General/FO)
Investment allowed to individual/firms against financial obligation (i.e lien of MTDR/PSP/BSP/Insurance
Policy/Share etc.) This may not be a continuous investment.
Bai-Muazzal (WO)
Investment allowed against assignment of work order for execution of contractual work falls under this
head. This investment is generally allowed for a definite period and specific purpose i.e. it is not a
continuous investment.
Bai-Muazzal (Export)
Investment allowed for purchasing foreign currency for payment against L/Cs (Back to Back) where the
exports do not materialize before the date of import payment. This is also investment for temporary
period, which is known as export finance and falls under the category Commercial Lending.
Murabaha Import Bills (MIB)
Payment made by the bank against lodgment of shipping documents of goods imported through L/C falls
under this head. It is an interim investment connected with import and is generally liquidated against
payment usually made by the party for retirement of the documents for release of imported goods from
the customs authority. It falls under the category Commercial Lending.
Murabaha Post Import (MPI)
Investment allowed for retirement of shipping documents and release of goods imported through L/C
26
taking effective control over the goods by pledge in godown under banks lock & key fall under this type
of investment. This is also a temporary investment connected with import is know as post import finance
and falls under the category Commercial Lending.
3.3 Financial scenario of FSIBL
Reserved & Capital
Stock Dividend of 55% was declared for then year 2007 which increased paid-up capital of the bank from
tk 1296.21million to tk 1921.21million in 2008 while authorized capital was 345 million.
The Reserve fund increased to 569.10 million in 2008 after maintaining 25% pretax profit. the total equity
of shareholders of the bank stood at tk 3626.30 million at the end of the year 2012.
Capital & Reserve per year

4000
3000
2000
1000
0
Authorized Capital
2008 2009 2010 2011 2012

year
million
of tk
Fig 3.2: Capital & Reserve per year

Import& Export Business
During the year, the bank opened 28,872 import letters of credit and the import volume stood at Tk.
61399.40 million with a growth of 23.80% in comparison with previous year of Tk. 49596.73 million.
The growth of the export business has been increased by 20.67%. It stood at Tk. 55790.42 million as of
December31, 2007 against Tk. 46234.59 million of the previous year.
Deposits
The deposits of FSIBL registered an increase of 33.36 percent during the year under review, at the close
of 2012 total deposits stood at Tk. 23,504 million against 17,592 million expanded branch network
innovative deposit products, a huge number of customers, which contributed to the growth of deposit. The
main customers include individuals, corporation, financial institutions, governments and autonomous
bodies etc.
27
Deposits of FSIBL during the year 2012 (In million)
11504
23504
12000
Fig 3.3: Deposits

Loans and Advances
First Security Islami Bank Ltd has been able to increase its loans and advances despite adverse conditions
in the domestic as well as in the global economy. The Bank recorded a. growth of 36.42 percent with a
total loans and advances portfolio of Tk. 18,616.23 million at the end of December 2012 compared to Tk.
13,646.00 million at the end of December 2011. The growth was due to parking of established business
enterprises, new ventures of Syndication Loan, Housing loan, project loan, Agro loan etc. and usual
growth in foreign trade.
Fig
Loans & Advances of FSIBL during the year

2012 (In million
)
5780.25
18616.23
13646
3.4: Loans and Advances
Investments
In an effort to secure more stable and predictable earnings from its investment, the bank focused its
attention on investment in Govt. securities, shares and call money market. The total investment of the
bank stood at Taka 7760.38 million as on December 2011 as against taka 6239.83 million in the previous
year.
28
Foreign Trade:
The Bank handle foreign trade in which it has comparatively large share despite its small size. FSIBL
provides various facilities related to L/C and post import finance like loan against imported merchandise
(LIM), Loan against trust receipt (LTR), back to back L/C and pre shipment finance facilities like export
credit and packing credit to exporters. So far the bank has established correspondence relationship with as
many as foreign banks in order to facilities foreign trade. The bank handled total export business of Taka
22418.40 million. And import business of Taka 26781.80 million in 2011. The import business is
increased by 39.05 percent and export business is increase by 48.22 percent. Major items of exports
garment send jute products. Items of import included mainly industrial raw materials, garment accessories
and capital machinery.
Head Office
(Amount in million)
Year
Import Finance
Export Finance
2011
2010
26781.80
19260.10
22418.40
15124.60
(Source: Annual Report 2011)
2009
13152.50
10088.30
Source of fund
Main part of the source of capital of FSIBL is equity of share holder & savings of mass people that money
used by the bank for short & long term debt /loan to the different enterprise & financial institutions
&earns huge profit against that.
Paid-up capital
Reserve & capital
Deposit
Borrowing
Other liabilities
5.90%
55%
33.36%
1.74%
4.06%
Fig 3.5: Source of fund

Application of fund
Loan
& Investment
Advances
36.42%
Cash & Bank Call money
Fixed Asset
money
20.45%
9.41%
Other
Assets
4.48%
20.48%
29
8.76%
Fig 3.6: Application of fund

Number of branch
Year
2009
2010
2011
2012
Number of Branch
45
60
80
100
120
50
80
60
No of branch
40
20
0
2009 2010
2011 2012
Year
N
o.
1
0
0
br
a
n
c
h
Fig 3.7: Number of branch

Number of Employee
First security Islami Bank Ltd is the private bank sector. The number of employee increased through out
its life because of growing nature. In 2012 the member of employee was 2432 & previous year which
were 2270.
30
3000
2500
2000
1500
No. of employees
1000
500
0
2008 2009 2010 2011 2012

Year
N
o.
of
e
m
pl
oy
ee
(Source: Annual Report 2012

Fig 3.8: Number of Employee
Foreign Remittance
First Security Islami Bank Limited has remittance arrangements with different banks and exchange house
in various countries throughout in the world. Foreign Remittance of the bank stood at Tk 710.30 million
as of December-31, 2012 which was 543.78 million in 2011 .Beside the bank has taken initiative to make
remittance arrangements with some leading exchange house at abroad.
1000
600
600
Remittance
400
0
2008
2009
2010
2011
2012
Milli
8n
of
Tk
Year
Fig 3.9: Foreign Remittance

Other activities
The bank provides services for underwriting, guarantee, public offering of shares etc. The bank also
provides funds to investment and leasing companies.
31
32
3.4 Foreign exchange:

Refers to the process or mechanism by which the currency of one country is converted into the currency
of another country. Foreign exchange is the means and methods by which rights to wealth in a countrys
currency are converted into rights to wealth in a countrys currency, in bank when we talk of foreign
exchange, we refer to the general mechanism by which a bank converts currency of one country into that
of another.
Foreign exchange is divided in three parts.
1
Export
Import
Foreign Remittance
3.5 EXPORT:
The term exports means carrying out of anything from one country to another, as banker we define export
as sending of visible things outside the country for sale. In a word export means goods are outwards and
foreign currencies are inward. Export trade plays a vital role in the development process of an economy.
In order to export any goods or services to overseas the exporter must have attested photocopies of the
following documents with the up to date ERC. The documents are as follows1
Bill of exchange
Commercial invoice
Certificate of origin
Packing list
Insurance coverage
Insurance coverage
Beneficiary certificate
If the bank authority satisfies with all the information provided by the exporter, steps are taken to smooth
out the process of export.
Procedure of Export:
The Exports Act, 1950 regulate the countrys export trade. There are a number of formalities, which an
exporter has to fulfill before and after shipment of goods. These formalities or procedures of export
mechanism are enumerated as follows:
Registration:
The exports from Bangladesh are subject to export trade control exercised by the ministry of commerce
through chief controller of imports and exports. No exporter is allowed to export any commodity
permissible for export from Bangladesh unless he or she is registered with CCI & E and holds valid
33
export registration certificate (ERC). The ERC number is to be incorporated on EXP forms and other
documents connected with exports.
Obtaining EXP:
After having the registration, the exporter applies to the bank with trade license and ERC for getting EXP.
If the bank satisfied an EXP is issued to the exporter. Securing the order after having the registration, the
exporter may proceed to secure the export order. Contracting the buyers directly through correspondence
can do this.
Signing of the Contact: The following points are to be mentioned while making a contract1
Description of the goods
Quantity of the commodity
Price of the commodity
Shipment
Insurance and marks
Procuring the Materials:

After making the deal and on having the L/C opened in this favor, the next step for the exports is to set
about the task of procuring the contracted merchandise.
3.6 Shipment of Goods:
The following the documents normally involved at the stage of shipment
1
EXP form
Photocopy of registration certificate
Photocopy of the contract
Photocopy of the L/C
Freight certificate from the bank
Railway receipt, barges receipt or truck receipt
Shipping instructions
Insurance policy
After those, exporter submits all those documents along with a letter of indemnity to the bank for
negotiation; an officer scrutinizes all the documents. If the document is a clean one, FSBL purchases the
documents on the basis of banker-customer relationship. This known as foreign documentary Bill
purchase (FDBP).
Procedure for FDBP:
After purchasing the documents, FSBL takes FDBP charges from customers A/c. a FDBF register is
maintained for recording all the particulars.
34
Foreign Documentary bills for Collection: FDBP signifies that the exporter will receive payment only
when the issuing bank gives payment. The exporter submits duplicate EXF form and commercial invoice,
an FDBP register is maintained where first entry is given, when the documents are forwarded to the
issuing bank for collection and the second one is after realization the proceeds.
Advising L/C:
When L/C export) is transmitted to the bank for advising the bank sends advising letter to the beneficiary
depicting that L/C has been issued. The procedure of L/C advising is as follows--1
Verify the signatures
Given entry in the L/C advising register.
Issued voucher for L/C advising commission
Letter of Credit (L/C):

Letter of Credit (L/C) is an arrangement between an importer and the bank (issuing bank). The bank
provides L/C in order to purchase goods from the exporter. The bank acts on the behalf of the clients to
deal with exporter and the clients make the payments after receiving the goods accordingly.
Requirement of Opening a L/C:
1
Current deposit account holder
IRC (Import registration Certificate)
Import policy
L/C authorizing form duly registered
L/C authorizing form duly registered
L/C applications duly fill up and sign
L/C applications duly fill up and sign
Contract/indent
Insurance coverage
10 Income tax document

11 Contingency liability voucher
12 L/C registration
Back-to-Back Letter of Credit (BTB L/C):
A back-to-back letter of credit is a new credit. The banks main security is the original credit. Bank to back
L/C is opened under a master L/C one or more L/C is opened against one master L/C.
Requirements of Opening a Back-to-Back L/C:
1
Master L/C
Valid import registration certificate and Export Registration certificate
L/C Application and LCA form duly filled in signed
35
Pro-forma invoice or indent
Insurance cover note.
IMP form duly signed.
Types of BTB L/C:

There three types of BTB L/C they are
1
Local BTB L/Cs
Foreign BTD L/C
EPZ
Opening Process of a L/C:

a) Approach by the applicant with submission of under mentioned documents:
1
Approach letter
L/C agreement
L/C authorization form
IMP form
Pro forma invoice
Insurance
b) Preparation of proposal by the branch. Parts of proposal are stated bellow:

1
Name and address of the applicant
Nature of constitution with name of owners
Nature of business
IRC # TIN #
Commodity to be imported
Beneficiarys name and address
Beneficiarys credit report
Country of origin Liability
Security
10 Other Conditions
11 Recommendation 3 On receipt approval from the competent authority, branch issues L/C.
c) On the issuance of L/C, Branch may use the printed copy as prepared by the individual bank or
developed by the concerned official. Related copies are stated bellow:
1
Original copy
Applicant copy
Advising bank copy
Issuing bank copy
36
CCI and E copy (only for foreign L/C)
d) Parts of a L/C are discussed bellow:

6
The L/C may be irrevocable document
L/C opening date must be mentioned
L/C number
Beneficiarys name with address
10 Applicants name with address

11 Advising bank
12 Amount
13 Date of shipment
14 Sight
15 Date and place of expiry
16 Pro-forma invoice with date that had been sent by the Beneficiary
17 Signature of authorized officials
18 Other terms and conditions
3.7 Documentation:
At first prepare forwarding. Then arrange the following documents---1
Bill of exchange
Commercial invoice
Packing list
Certificate and other documents
Retirement:
This means wait for payment. When the beneficiary sends the goods, they send related documents for
payment to the bank. The bank starts the retirement procedure. At first checking these documents with the
L/C, L/C time, date number, invoice, terms and conditions, beneficiarys.
Foreign Payment:
The issuing bank prepares voucher, then entries in the IBTA register, ETDA, and then send to the ID. Id
informed the bank, which maintains liaison between the issuing bank and advising bank. Then the bank
pays to the beneficiary after checking the authentication code.
Payment:
Then they pay in local payment and foreign payment
Local Payment:
37
Local payment, the bank used P.O and Demand Draft.

3.8 Import:
Import is foreign goods and services purchased by firms, customers and government in Bangladesh. An
importer must have import registration certificate (IRC) given by Chief Controller of Import & Export to
import anything from other country.
Import Procedure:
The importer enters in to a purchase contract with foreign suppliers. If suppliers have local agent, the
importers obtain an indent and pro-forma invoice. If the suppliers have no local agents in Bangladesh, the
importers holding valid import registration certificate (IRC).
Documents that needed for opening an import L/C are listed bellow:
1
L/C application duly signed and sealed by the opener.
At least 4 copies of pro-forma invoice/indent duly signed and sealed by the opener and beneficiary.
Party application form duly signed and sealed by the opener.
LCA/IMP forms duly signed and sealed by the opener.
Beneficiary credit report
Insurance cover note with money receipt.
3.9 Import Mechanism:

The exports and imports Act, 1950 regulate the countrys import trade. The chief controller of import and
export provided the registration to the importer. Then the person secures a letter of credit Authorization
from Bangladesh bank. And then a person becomes a qualified importer.
The import mechanisms are discussed bellow:
1
To have an import L/C limit, an importer submits an application to the import department. An officer
scrutinizes this application and accordingly prepares a proposal and forwards it to the head office. If
the MD satisfies, he sanctions the limit and returns to the branch.
After sanctioning the limit, an officer of FSBL makes a L/C application.
After making the L/C application, must be scrutinized by the authority.
The transmission of L/C is done through tested telex or fax or mai9l to advise the L/C to the
beneficiary.
After receiving all documents, the negotiating bank checks the documents against the credit. It the
documents are found in order, the bank will pay accept or negotiate to FSBL.
The officials have to very much careful while making payment. This task constitutes the following--
Usually payment is made within seven days after the documents have been received.
A sale memo is prepared at B.C. rate to the customer. As TI and 00 rate is paid to the ID, the
38
difference between these two rates is exchange trading. Finally, an inter Branch Exchange Trading
credit advance is sent to ID.
8
For arranging necessary fund for payment, a requisition is sent to the ID
Telex is transmitted to the correspondent bank ensuring that payment is being made.
Remittance means to sent or transfer money worth from one place to another In this case, the bank acts as
the media to transfer or remit the money. Against the service it charges some commissions from the client.
Drawing arrangements:
Drawing arrangements is made to facilitate remittance through concluding accounting relationship
between a bank and corresponding, which may exist in the following three forms of accounts.
NOSTRO A/C:
A foreign currency account that a local bank maintains that account with another bank in abroad.
VOSTRO A/C:
An account, which a foreign bank maintains with a local bank, is called VOSTRO A/C.
LORO A/C:
An account, which a third party maintains with a foreign bank, is called LORO A/C.
Types of Remittance: There are two types of Remittance:
A. Foreign inward remittance:
The remittance in foreign currency, which is received from outside the country to our country, is known
as foreign inward remittance. The remittance can be performed in two proceeds:
1
Visible inward remittance: e.g. export proceeds.
Invisible inward remittance: e.g.; family maintenance consultant fee. Cash is remitted through TT,
DO, etc.
B. Foreign outward remittance: Funds remitted to overseas on behalf of the client:

FSBL FOREIGN TARNSACTIONS:
1
Great Britain pound
U.S Dollar
EURO
YEN
39
Chapter-Four
SWOT Analysis of FSIBL
40
4.0 SWOT Analysis of FSIBL Ltd.

SWOT analysis is the detailed study of an organizations exposure and potential in perspective of its
strengths, weakness, opportunity and threat. This facilitates the organization to make their existing line of
performance and also foresee the future to improve their performance in comparison to their competitors.
As though this tool, an organization can also study its current position, it can also be considered as an
important tool for making changes in the strategic management of the organization.
Organisations often think the way to measure customer satisfaction is to examine the number of customer
complaints. The problems with this method is that it is reactive, it only responds (if at all) after the event
and it does not really measure satisfaction only dissatisfaction. Monitoring complaint levels does not
really tell if the customers are any more or less satisfied with the product or service.
In the competitive arena of marketing era SWOT analysis is a must based on Product, Price, marketing
policies of a financial institute like private bank. From the SWOT analysis we can figure out ongoing
scenario of the bank.
4.1 Strengths
Bank reputation
FSIBL ltd. has already established a favorable reputation in the banking industry of the country. Within a
period of 9 years, bank has already established a firm footing in the banking sector having tremendous
growth in the profits and deposits. All these have leaded them to earn a reputation in the banking field.
Islamic banking Concept
As we are an Islamic Nation our major deals want to follow the Islamic rules and regulations. FSIBL
always follows the Islamic rules. And it always helps the bank to attract the new and existing clients.
Sponsors
FSIBL ltd. was founded by a group of well-known entrepreneurs of the country having sufficient financial
strength. The sponsor directors belong to prominent resources persons of the country. The Board of
Directors headed by its Chairman Alhaj Md. Saiful Alam. Therefore, FSIBL has a strong financial
strength and it built upon a strong foundation.
Top Management
The top management of the bank is also major strength. The top management officials have all worked in
reputed banks and they are very experienced in the banking sector, skills, expertise will continue to
contribute towards further expansion of the bank. At FSIBL Ltd. the top management is the driving force
and the planning of the organization where policies are crafted and often cascaded down.
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Facilities and equipment

FSIBL ltd. has adequate physical facilities and equipments to provide better services to the customers.
The bank has computerized and online banking operations under a software. Counting machines in the
teller counters have been installed for speedy service and the cash counters. Computerized statements for
the customers as well as for the internal use of the banks are also available.
Modern branches
This creates a positive image in the minds of the potential customers and many people get attracted to the
bank. This is also an indirect marketing campaign for the bank for attracting customers. All branches of
the bank are impressive and are compatible to foreign banks.
Team work at mid level and lower level
At FSIBL Ltd. have mid level and lower level management, there are often team works. Many jobs are
performed in groups of two or three in order to reduce the burden of the workload and enhance the
process of completion of the job. People are eager to help each other and people in general are devoted to
work.
Interactive corporate culture
FSIBL ltd. has an interactive corporate culture. Unlike other local organization, its work environment is
very friendly, interactive and informal. There are no hidden barriers or boundaries while interacting
among the superior or the subordinate. The environment is also lively and since the nature of the banking
job itself is monotonous and routine, FSIBL. is likely work environment boosts up the spirit and
motivation of the employees.
4.2 Weaknesses
Advertising and promotion of their new product
This is a major set back for FSIBL Ltd. and one of its weakest areas. Banks advertising and promotional
activities are satisfactory but it SME loan is not advertised well. It does not expose its SME product to
general public and are not in lime light. FSIBL does not have any sign or any advertisement for SME loan
in the city. As a result people are not aware of the existence of this bank.
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Low reward package

The reward package for the entry and the mid level management is considerably low. The compensation
package for FSIBL. Entry level positions are even lower than the modern banks. Under the existing low
payment structure, it will be very difficult to attract and retain higher educated employees in FSIBL.
4.3 Opportunities
Diversification
FSIBL can pursue a diversification strategy in expanding its current line of business. The management
can consider options of starting merchant banking or diversify in to leasing and insurance. By expanding
their business portfolio, FSIBL can reduce their business risk.
Product line proliferation

In this competitive environment FSIBL must expand its product line to enhance its sustainable
competitive advantage. As a part of its product line proliferation, FSIBL can introduce the following
products.
ATM: Try to submit ATM service As soon as possible .it is in under processing.
4.4 Threats
1
There are many competitors in the marker
The growth rate of competitors in the market
Many of the competitor banks are well equipped & also providing better online services
Regulatory requirements
Govt. pressures to reduce interest rate
Changing customers needs
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Chapter-Five
Findings, Recommendation and Conclusion
44
5.0 Major Findings:

If they are aware of some simple setback, that might be better for HRD. The setbacks are as follows as
under:
1
There is no recording system of highly favorable and unfavorable employees actions.
A single commitment to the organization.
Subordinates developmental needs totally depend on Manager Cooperation, Leadership and

attitude, which is absent in First Security islami bank Limited.
Managers do not provide any brief/ discussion or guide to communicate the performance
appraisal system of the bank.
Rating scale is very high level for Understanding to Employee.
Annual performance Appraisal systems are very wide-ranging.
Before Evaluation HRD/Manager doesnt notice, informed or guide to the employee.
Employees are not addressed to understand their progress in the job or there is no formal
mechanism of counseling system to improve performance.
HRD did not undertake any research/query/survey on every employee performance, behavior,
work attitude, and job satisfaction.
10 Regular performance appraisal helps to develop employee morale and performance.

11 Performance appraisal format exists for all levels of employee.
12 There is positive relationship between performance appraisal and employee
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5.1 Recommendations
I have focused and analyzed on performance of the bank while working as an intern. First Security Bank
Limited is a new bank in Bangladesh, but its contribution to the socio economic aspect has greatest
significance. Though my topic is A study on Overall Banking System of First Security Ismami Bank
Ltd. , I have tried to identify the problems as a whole. I have found a fewer number of factors which
impede the achievement of ultimate goals of the bank. It is not easy to find out the solution of the
problems as inexperience intern like me, although I have developed some suggestion and generated a set
of recommendation that might be helpful for solving few problems and improve the service as well as
image of the bank.
Service Quality must be improved:
Fast and prompt services should immediately be developed, as customers want their desired services
without any delay. The management must take special care and steps to improve the service quality.
Adequate people with proper training and skill should be place at this wing of the bank. So the employees
should be well equipped and prompt in their work.
Decision should be decentralized:
The scope for bottom up communication is very essential and must be made without any delay. Many
bright ideas are not being able to reach to the ladder to the top management; steps should be taken to
make reach the ideas to the top. While making any decision all the ideas must be considered and
discussion should be conducted with low and mid level management.
Branch level and Staff meeting should be increased:
Staff meetings and departmental meetings at the branch level must be increased to develop service quality
as well as problem solving. Such meeting can also help interchange the inner-qualities of each other and
improve qualities employees as well management. Branch level meeting can help interchange improved
service qualities.
Change the shape of office space and maintain discipline:
Cubical type of design can be used in the office to prevent the noise pollution in the bank. It will also help
to maintain discipline in the bank. Each desk should be in cube and separated from each other.
Reference employment must be stopped:
46
Recruitment should be in a systematic and effective process that can make sure that right people are in the
right place. Reference for recruitment should consider as disqualification.
Remuneration package should be improved:
Payment to the workforce should be such that will encourage the employees to work more. Remuneration
package must be impressive and inconsistent with work performance. And it should also increase the
remuneration to the employees to attract quality personnel.
Stop Influenced Credit Sanction:

The bank should be more careful about its credit operation. It should make its employees more trained
and skilled about credit approval system. While granting Credit proper inspection must be made and
reference Credit sanction must be stopped. Regular communication with the defaulter is must whether it
is physical or over phone. Bank should issue reminder letters for collecting its overdue.
The bank must decide its vision or long-term strategies:
The bank must make its long-term strategies of whether it wants to focus on retail banking or become a
corporate bank. The path for the future should be determined right now. A prescribed set of vision or
target should be made as with consistent with time.
Improvement of human resource department:
The Human Resource wing has to be more active rather than maintaining administrative duties. More
qualified and skilled Human Resource professional should be recruited for this department for future
growth of the Human Resource of the bank. The management should immediately apply the performance
appraisal system and take appropriate actions on the basis of that appraisal. All sorts of promotions or
other benefits should be based on the report of the performance appraisal.
Increase advertisement and promotion:
The bank should give an aggressive advertisement campaign to build up a strong image and reputation the
potential customers.
47
5.2 Conclusion
First Security Islami bank Ltd. has established goodwill through innovative products and services. It has
many problems but is followed very sincerely the rules, regulations and advice of Bangladesh bank
during the last nine years. From the practical implementation of customer dealing procedure during the
whole period of the practical orientation in FSIBL .I have reached a firm and concrete conclusion in a
very confident way. The realization will be in synchronization with most of the banking thinking. It is
quite evident that to build up an effective and efficient banking system to the highest desire level
computerized transaction is a must.
loan losses, the more the income will be from credit operation. The more the income from the credit
operation the more will be the profit of the FSIBL and here lays the success of credit financing.
Through there are some drawbacks in implementing credit facilities in FSIBL as per manual, it can be
further developed in light of the recommendations being discussed above. During the 03 month internship
program at almost all the desk have been observed more 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 depth or each activities of division
because of time limitation.
So, objectives of this internship program have not been fulfilled with complete satisfaction. However,
highest effort has been given to achieve the objectives the internship program.
Success in the banking business largely depends on effective lending. Less the amount of
48
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What are the different types of banks mentioned?

What are the different types of banks mentioned?

What are commercial banks focused on primarily?

What are commercial banks focused on primarily?

General Banking system

To evaluate the performance of General Banking of FSIBL

To Examine the credit management system of FSIBL

To find out the foreign exchange activities of FSIBL

To observe the working environment of FSIBL banks.

To explore the relationships between performance appraisal & employee commitment.

Face-to-face conversation with clients visited the branch.

The Secondary Sources of data and the information are:

Annual Report of FSIBL

Website of the FSIBL.

Different procedure manual published by FSIBL

Different circular sent by head office or FSIBL.

1.5 Sampling Deign

Difficulty in assessing data of its internal operations.

Non unavailability of some preceding and latest data.

Time length was not sufficient to judge everything judiciously.

2.0 Background of First Security Islami Bank Limited

2.4 Goal of FSIBL:

To be most caring & Customer friendly & service oriented bank.

To create a technology based most efficient banking environment.

To ensure sustainable growth.

To add effective contribution of the national economy.

2.5 Performances of FSIBL

Executive Vice President

Mrs. Sharmin Fatema

Alhaj Mortoza Siddique Chowdhury

Mr. Hamidul Haq

Mrs. Atiqun Nesa

Mr. Md. Sharif Hussain

Mr. A. K. M. Ali Johar

Mr. Md. Wahidul Alam Seth

Mr. Shahidul Islam

Mr. Mohammed Oheidul Alam

Dr. Muhammad Loqman

Mrs. Shamshad Jahan

Board & Company Secretary

Topkhana Road Branch

Bisharoad Branch ,Bashabo

First Security Islami Bank Branch (Dokhin Khan)

College Gate Branch

In Chittagong division they have nine branches:

Jublee Road Branch

Protrok Mor Branch

Nozumia Hat Branch

Karanir Hat Branch

Dobashi Bazar Branch

In Sylhet division they have four branches:

In Khulna division they have two branches:

In Rajshahi division they have three branches:

2.14. Management Structure of FSIBL

Advance manual including advances limit for different management level.

Bad and doubtful recovery manual.

Foreign banking guidelines.

Central bank directives.