An Internship Report

On
“General Banking Activities of Al-Arafah Islami Bank Limited
Zindabazar Branch, Sylhet.”

Supervised By

Md. Ziaur Rahman

Assistant Professor
Department of Business Administration
Metropolitan University, Sylhet

Prepared By

Md. Abid Hossain

ID: 161-116-135
BBA 38th Batch (Major in Finance and Banking)
Department of Business Administration
Metropolitan University, Sylhet

Date of Submission: 12th December 2019

Zindabazar Branch, Sylhet.

ii
 Letter of Transmittal

12th December 2019

I hope that the report serves the purpose which it was assigned for. I shall be pleased to
answer any sort of query you think is necessary as now and when needed.

Sincerely Yours,

______________
Md. Abid Hossain
ID: 161-116-135
BBA 38th Batch
Major in Finance and Banking
Department of Business Administration
Metropolitan University, Sylhet

3
 Letter of Acceptance

It is my pleasure to certify that Md. Abid Hossain Student ID: 161-116-135, a student of
Department of Business Administration, Metropolitan University, Sylhet has prepared this
internship report titled on “General Banking Activities of Al-Arafah Islami Bank Limited
Zindabazar Branch, Sylhet” to accomplish a partial fulfillment for his Bachelor of Business
Administration (BBA) degree. According to my knowledge, he himself has prepared this
report on his own idea under my direction and supervision.

He is found proactive and sincere. I wish his every success in life.

_____________________
Md. Ziaur Rahman

Assistant Professor
Department of Business Administration,
Metropolitan University, Sylhet.

4
 Preface
An Internship Program is very much effective for a student to obtain practical knowledge. It
offered me the best opportunity to undertake a temporary work assignment as an Intern to
enable me having a realistic exposure to job and organizational conditions that helped me to
bridge the gap between classroom learning and actual job conditions. As a part of my BBA
program, I have completed this internship and prepared a report. Metropolitan University,
Sylhet has adopted the policy of assigning an internship report to every student as a part and
parcel of the academic curriculum of the BBA Program. Participation inan internship by the
students will expose them to practical knowledge. The internship report is prepared under the
guidance of a supervisor. As a student of BBA, I have taken practical training from 04
September 2019 to 04 December 2019 at Al-Arafah Islami Bank Limited, Zindabazar
Branch. I have collected the necessary information from that branch.
I was given a limited time to prepare such a difficult report. So, there may be any slip of the
pen for which I beg your pardon. I am grateful to my teachers, friends, and staff of Al-Arafah
Islami Bank Limited for their valuable time and helpful suggestions.

5
 Acknowledgment
At first, I would like to express my gratitude to Almighty Allah who has given me the
opportunity to go through the total process of internship and to write a report on this regard.
I would like to take the opportunity to express my gratitude to my Supervisor, Md. Ziaur
Rahman, Assistant Professor, Department of Business Administration, whose direction,
guidance and support helped me a lot in writing this report.
It was a great pleasure for me to work at Al-Arafah Islami Bank Limited (Zindabazar Branch)
as an intern. I found all the employees for being friendly and co-operative. I was taught lots
of important things through-out my internship career because of their proper attention and co-
operation.
My deepest appreciation and thanks go to ASM Gouch Uddin Siddiquee (AVP & Manager),
Mohammed Abdal Ahmed Chowdhury (FAVP & Operation Manager) and Kazi Md. Taher-
A-Mustafa (PO) of Al-Arafah Islami Bank Ltd, Zindabazar Branch, Sylhet for extending his
support in compiling this report. I would especially like to thank Monjur-A-Malak (Principle
Officer) who guided me all the time. Also, I would like to thank Md Mufijur Rahman
(Principle Officer), Abul Hasnat Md Mahmud (Principle Officer), Abdul Mannan (Senior
Executive Officer),SM MasudulAkter Islam (Senior Executive Officer), Abu Zafar Md.
Sadekul Islam (Senior Executive Officer), Abu Saleh Md. Maidul Islam (Executive Officer),
Md Alhas Uddin (Field Officer) &Md Abu Jayed Miah (Field Officer) who helped me a lot
during my internship days with valuable pieces of advice, guidance, and necessary
information.
At last, I must mention the wonderful working environment and group commitment of this
branch that has enabled me a lot of deal to do and observe the banking activities during my
internship period of three months.

______________
Md. Abid Hossain
ID: 161-116-135
BBA 38th Batch
Major in Finance and Banking
Department of Business Administration
Metropolitan University, Sylhet

6
 Executive Summary
Islamic philosophy urges us to prevail in life here and hereafter. With the goal of making
progress here and hereafter by seeking after the route coordinated by Allah and the way
appeared by His Rasul (SM), Al-Arafah Islami Bank Limited was set up as a private
restricted organization on eighteenth June 1995.
The general financial division is the core of all financial exercises. This is the busiest and
significant division of a branch since reserves are activated; money exchanges are made;
clearing, settlement, and bookkeeping exercises are performed here. It gives those clients
who come every now and again and those clients who come one time in banking for getting a
charge out of subordinate administrations.
There were a few duties completed by me in the general financial division of Al Arafah
Islami Bank Limited (Zindabazar branch). Consistently I used to begin my duty at 10:00 am
and it finished at 06:00 pm. Inside this time, various kinds of the activity were performed by
me, for instance, accounts opening & updating, closing accounts, receive cheque requisition,
pay order issue, checkbook requisition & delivery, debit card delivery, and writing deposit
slip, etc.
In the internship period, I have discovered that there are not many quantities of exporter and
merchant in AIBL. Representatives are not prepared to their most extreme level and absence
of them makes numerous administrations deferred which causes disappointment among
clients. Unless an emergency, very few branches level meeting is held. Lack of modern PC
and comprehensive banking software also causing problems for the bank.

In order to get a competitive advantage and to deliver quality service, top management should
try to modify the service. While opening a new account, AIBL must demand more valuable
documents from new customers. Marketing activities should be increased and services must
be fast in order to attract and satisfy customers. ATM services must be optimized regularly.
AIBL needs to provide more training facilities, a more computerized system, and a strong
network connection and a systematic process in the cash counter to give customers well and
fast facilities. Time consumed at the service level should be minimized at an optimum level.
Banks have their own innovative system, which prompts their destinations. Some wish to
grow faster and achieve some long-range growth. On the other hand, some banks want to lead
a quiet life minimizing risk and convey an image of a sound-bank. AIBL is playing a safe
game in the banking field. With proper utilization of human resources, the introduction of
new technology and increased automation services, this bank could reach its maximum
potential.

7
 Table of Contents
Letter of Transmittal..............................................................................................................3
Letter of Acceptance..............................................................................................................4
Certificate of Internship Completion....................................Error! Bookmark not defined.
Preface....................................................................................................................................5
Acknowledgment...................................................................................................................6
Executive Summary...............................................................................................................7
CHAPTER ONE – INTRODUCTION....................................Error! Bookmark not defined.
1.1 Origin of the Study.........................................................Error! Bookmark not defined.
1.2 Rationale of the Study....................................................Error! Bookmark not defined.
1.3 Objectives of the Study..................................................Error! Bookmark not defined.
1.4 Methodology of the Study..............................................Error! Bookmark not defined.
1.4.1 Data Collection........................................................Error! Bookmark not defined.
1.4.2 Data Processing.......................................................Error! Bookmark not defined.
1.5 Scope of the Study..........................................................Error! Bookmark not defined.
1.6 Limitations......................................................................Error! Bookmark not defined.
CHAPTER TWO – OVERVIEW OF BANKING INDUSTRY............Error! Bookmark not
defined.
2.1 Definition of Bank, Banker, and Banking......................Error! Bookmark not defined.
2.1.1 Bank.........................................................................Error! Bookmark not defined.
2.1.2 Banker.....................................................................Error! Bookmark not defined.
2.1.3 Banking...................................................................Error! Bookmark not defined.
2.2 Objectives of Bank.........................................................Error! Bookmark not defined.
2.3 Characteristics of Bank..................................................Error! Bookmark not defined.
2.4 Origin of Banking...........................................................Error! Bookmark not defined.
2.5 History of Banking.........................................................Error! Bookmark not defined.
2.6 History of Banking in Bangladesh.................................Error! Bookmark not defined.
2.7 Central Bank of Bangladesh...........................................Error! Bookmark not defined.
2.8 Banks in Bangladesh......................................................Error! Bookmark not defined.
2.8.1 Scheduled Banks.....................................................Error! Bookmark not defined.
2.8.2 Non-Scheduled Banks.............................................Error! Bookmark not defined.
CHAPTER THREE – PROFILE OF AL-ARAFAH ISLAMI BANK LIMITED...........Error!
Bookmark not defined.

8
3.1 Historical Background of Al-Arafah Islami Bank Limited (AIBL)....Error! Bookmark
not defined.
3.2 Islamic Banking Movement in Bangladesh....................Error! Bookmark not defined.
3.3 Vision, Mission, Commitments......................................Error! Bookmark not defined.
3.3.1 Vision......................................................................Error! Bookmark not defined.
3.3.2 Mission....................................................................Error! Bookmark not defined.
3.3.3 Commitments..........................................................Error! Bookmark not defined.
3.4 Schemes of AIBL...........................................................Error! Bookmark not defined.
3.5 Management...................................................................Error! Bookmark not defined.
3.6. Organization Structure of AIBL....................................Error! Bookmark not defined.
3.7 Departmentalization of AIBL.........................................Error! Bookmark not defined.
3.8 Hierarchy of AIBL.........................................................Error! Bookmark not defined.
3.9 Job Analysis of AIBL.....................................................Error! Bookmark not defined.
3.10 Job Specification of AIBL............................................Error! Bookmark not defined.
3.11 Designations of Employees of AIBL...........................Error! Bookmark not defined.
3.12 Departments and Their Functions................................Error! Bookmark not defined.
3.12.1 General Banking Department................................Error! Bookmark not defined.
3.14 Investment Division.....................................................Error! Bookmark not defined.
3.15 Human Resource Division............................................Error! Bookmark not defined.
3.16 Monitoring....................................................................Error! Bookmark not defined.
3.17 General Banking...........................................................Error! Bookmark not defined.
3.18 General Banking Sections............................................Error! Bookmark not defined.
3.18.1 Cash Section..........................................................Error! Bookmark not defined.
3.18.2 Account Opening Section......................................Error! Bookmark not defined.
3.18.3 Foreign Remittance Section..................................Error! Bookmark not defined.
3.18.4 Cheque Clearing Section.......................................Error! Bookmark not defined.
3.19 Payment Oder...............................................................Error! Bookmark not defined.
3.20 Online Transaction.......................................................Error! Bookmark not defined.
3.21 Electronic Funds Transfer (EFT).................................Error! Bookmark not defined.
3.22 Automated Clearing House..........................................Error! Bookmark not defined.
3.23 Cheques........................................................................Error! Bookmark not defined.
3.24 Fixed Deposits..............................................................Error! Bookmark not defined.
3.25 SME Banking...............................................................Error! Bookmark not defined.
3.25.2 Modes....................................................................Error! Bookmark not defined.

9
 3.25.3 Eligibility...............................................................Error! Bookmark not defined.
3.26 ATM Services...............................................................Error! Bookmark not defined.
3.27 Cards.............................................................................Error! Bookmark not defined.
3.27.1 La-Riba Islamic Credit Card.................................Error! Bookmark not defined.
3.27.2 Debit Card.............................................................Error! Bookmark not defined.
CHAPTER FOUR – KNOWLEDGE GAINED FROM BBA DEGREE.....Error! Bookmark
not defined.
4.1 Benefit from Internship..................................................Error! Bookmark not defined.
4.2 Actual Task Part.............................................................Error! Bookmark not defined.
4.3 Job Responsibilities........................................................Error! Bookmark not defined.
4.3.1 Accounts Opening & Updating...............................Error! Bookmark not defined.
4.3.2 Receive Cheque Requisition...................................Error! Bookmark not defined.
4.3.3 Pay Order Issue.......................................................Error! Bookmark not defined.
4.3.4 Cheque Book Requisition & Delivery.....................Error! Bookmark not defined.
4.4 Application of Knowledge gained during the BBA program.......Error! Bookmark not
defined.
5.4.1 Principles of Accounting/Cost Accounting and Intermediate Accounting......Error!
Bookmark not defined.
4.4.3 Business Law...........................................................Error! Bookmark not defined.
4.4.4 Principles of Marketing...........................................Error! Bookmark not defined.
4.4.5 Business Communication........................................Error! Bookmark not defined.
4.4.6 Banking and Insurance............................................Error! Bookmark not defined.
4.4.7 Business Environment.............................................Error! Bookmark not defined.
4.4.8 Management Information & Control System..........Error! Bookmark not defined.
4.4.9 Financial Analysis & Control..................................Error! Bookmark not defined.
4.4.10 Other Courses........................................................Error! Bookmark not defined.
CHAPTER FIVE – FINANCE AND BANKING SYSTEM OF AIBL. Error! Bookmark not
defined.
5.1 Finance System of AIBL................................................Error! Bookmark not defined.
5.2 Banking System of AIBL...............................................Error! Bookmark not defined.
5.3 Employees of AIBL........................................................Error! Bookmark not defined.
CHAPTER SIX – FINDINGS, RECOMMENDATIONS & CONCLUSION.................Error!
Bookmark not defined.
6.1 Findings..........................................................................Error! Bookmark not defined.
6.2 Recommendations..........................................................Error! Bookmark not defined.

10
 6.3 Conclusion......................................................................Error! Bookmark not defined.
References................................................................................Error! Bookmark not defined.
Acronyms.................................................................................Error! Bookmark not defined.

11