Internship Report

On
FSIBL Cloud & SMS Based Banking - A Performance
Indicator of FSIBL

Supervised By:
Salma Akther
Assistant Professor
Department of Management Studies
Jagannath University, Dhaka

Submitted By:
MD. Morshed Alam Masum
ID: B150202067
Section: A; Batch; 11th
Session: 2015-16; BBA Program
Department of Management Studies
Jagannath University, Dhaka

Date of Submission: 31 August, 2020

 Letter of Transmittal

Date – 31 August, 2020

Salma Akther
Assistant Professor
Department of Management Studies
Jagannath University, Dhaka
Subject: Submission of Internship Report.
Dear Mam,
You will be pleased to know that I have completed Internship Report on ‘‘FSIBL Cloud &
SMS Based Banking - A Performance Indicator of FSIBL’’.

Under the state of the report, I have been given relevant information from the employees of
First Security Islami Bank Ltd for collecting primary data. I also have gone through various
publications relating with First Security Islami Bank Ltd and its operation. This report
provides me an insight on the FSIBL Cloud & SMS Banking System of First Security Islami
Bank. In this report I have tried to find out some problem areas related to FSIBL Cloud &
SMS Banking of First Security Islami Bank Ltd and tried to find out some possible solutions
to those particular problems. I have enjoyed the preparation of the report because it provides
me with the chance to put my theoretical knowledge in a real-life situation. If you need any
kind of further information, I will be glad to provide accordingly.

I therefore pray & hope that you would be kind enough to me by providing acceptance of this
report and oblige thereby.

Sincerely yours,

MD. Morshed Alam Masum

ID: B150202067
Session: 2015-2016
BBA 11th Batch
Department of Management Studies
Jagannath University

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 Student’s Declaration

I do hereby solemnly declare that the report entitled “FSIBL Cloud & SMS Based Banking-
A Performance Indicator Of FSIBL’’ embodies the results of my own effort after completion
of 45 days’ work at First Security Islami Bank, perused under the supervisor of Mrs. Salma
Akther, Assistant Professor, Department of Management Studies, Jagannath University,
Dhaka.

I also confirm that, this report is only prepared for my academic requirement not for any
other purpose. It has not been previously submitted to any other university/ college/
organization for an academic qualification/ certificate/ diploma or degree.

I further affirm that the work reported in this internship is original and no part has been
previously submitted to any books or in any other universities.

MD. Morshed Alam Masum

ID: B150202067
Section: A, 11th Batch
Department of Management Studies
Faculty of Business Studies
Jagannath University, Dhaka

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 Certificate of Supervisor

I am pleased to declare that MD. Morshed Alam Masum, BBA program bearing the ID No:
B - 150202067, was advised to perform a study on the issue “FSIBL Cloud & SMS Based
Banking- A Performance Indicator Of FSIBL’’ for preparing an Internship Report. This
student has reviewed all the relevant materials and has conducted efforts practically in “First
Security Islami Bank Ltd” for 45days to achieve practical knowledge regarding banking
sector in Bangladesh.

He is wished all the best in his effort.

........................

Salma Akther
Assistant Professor
Department of Management Studies
Faculty of Business Studies
Jagannath University

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 ACKNOWLEDGEMENT

I would like to express my gratitude to my honorable academic supervisor and instructor

Salma Akther, Assistant Professor of Jagannath University for her constructive supervision
and instructions. Because of her kind supervision and guidance I am able to complete my
internship report properly. I am also thankful to all the personnel of First Security Islami
Bank of Azampur branch for the kind support. It was a great opportunity for me to work
practically with the corporate personnel of First Security Islami Bank. Specially, I express my
gratitude towards Mr. K.M.Abu Sayed Assistant vice president of First Security Islami Bank
Ltd Azampur Branch, I also give thanks Mr. S.M.Tanver Anwar, (First Assistant Vice
President , First Security Islami bank Ltd Azampur Branch), Mr. Hasan Iqbal (Principal
Officer), Rokeya Begum (Junior Officer) and, Mr. Abu MD Eaklasur Rahman (Assistant
Officer) whose gave me all the support that I needed to prepare my internship report. I would
also like to thank Ashma Siddiqua (Junior Officer) and Mr. Itkan Uddin (Probationary
Officer) for their kind support towards my internship and reports.

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 Table of Contents
Sl Topics Page
No. No.
Letter of Transmittal i
Student’s Declaration ii
Certificate of Supervisor iii
Acknowledgement iv

Chapter 01: Introduction 1-3

1.1 Introduction 1
1.2 Origin of the report 2
1.3 Objective of the Study 2
1.4 Scope of the Study 3
1.5 Limitations of the report 3

Chapter-02: An Overview Of The Organization 4-6

2.1 An Overview Of The 4

2.2 Vision 4
2.3 Mission 4
2.4 Core Values 5
2.5 Strategies 6
2.6 Mobile Banking 6
2.7 SMS Banking 6
2.8 ATM Banking 6

Chapter-03: Methodology of the Study: Data and 7

Methods
3.1 Methodology of the Study: Data and Methods 7

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 Chapter-04: FSIBL Cloud & SMS Banking 8-10

4.1 FSIBL Cloud Banking 8

4.1.1 Transactional Feature 8
4.1.2 How To Get FSIBL Cloud? 8
4.1.3 Security Tips 9
4.1.4 Other Features 9
4.1.5 How We Protect You? 9
4.2.1 SMS Banking 10
4.2.2 SMS banking solution offer customers a range of functionality 10
4.2.3 Concern 10

Chapter-05: Results and Discussion 11-13

5.1 SWOT Analysis 11-12

5.2 Cost Volume Profit Analysis 13
5.3 Findings 13

Chapter-06: Conclusion and Recommendations 14

6.1 Recommendations 14
6.2 Conclusion 14

References 15

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 Chapter-1

Introduction

1.1 Introduction

In these days our living is deeply dependent in the banking system. The house we live in
may have been mortgaged to a bank, the car we drive or the taxi and the bus we ride to our
office may have been bought with money borrowed from yet another bank. The businesses
we see around have their links with banks; they might have borrowed money from a bank to
finance their working capital or fixed assets. If nothing else, they will have at least a current
or a savings account for deposit of the day’s sale proceeds. So it is clear that bank and
banking business is very much important for us in all aspects and steps of our life. The last
two decades have seen a revolutionary development in the banking field of Bangladesh. The
expansion of the branches of banks, privatization of major national banks, introduction of the
scheme of social control, have all resulted in growth of banking habit among the people and
realization by banks of their social responsibilities. Basic changes are being introduced in the
working patterns of our banks so that they can fit in well in our new economic and social
system. On account of the growing importance of banking institutions most of the universities
and educational institutions give priority on the study about banking and its industry. For this
reason, I conduct my internship in First Security Islami Bank Limited (FSIBL) and try to
accumulate the knowledge regarding banking industry. First Security Islami Bank Limited is
a place where I could learn the basic operation of my department. This organization has
created a positive image to the customer’s mind by providing better service. This bank has
introduced some modern banking scheme that has got high market demand. As it maintain
the pace with the competitive business world, its activities, culture, philosophy and style
leads an intern student to be the best at any field of working life. As an intern student I have
got the opportunity to work with this organization for three months and acquire idea about
real business world. This report is based on Financial Performance Analysis up to 2009 to
2013 to get an overall idea of banking activities of First Security Islami Bank Limited has
been showed.

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1.2. Origin of the report

This report is prepared as per as internship requirement of my Bachelors of Business

Administration (BBA) program of Jagannath University. I worked 45 days in First Security
Islami Bank Limited. In these 45 days I have to do various banking activities. This report is a
brief overview of those daily activities I have done during the internship period.

1.3. Objective of the Study

The BBA program is designed to focus on practical and professional development of people
open to take up business as a profession as well as service as a career. Internship program is
made essential to this BBA program with the aim of developing the real-life sense. Before
starting exploration to the real occupational field, students get some professional and
practical knowledge on their interested fields.

As per the requirement of BBA program I applied and get appointed to First Security Islami
Bank, Azampur branch.

A topic has been selected “FSIBL Cloud & SMS Based Banking- A Performance Indicator
Of FSIBL” To conduct study and prepare an internship report which is mandatory to the
internship program.

I have prepared this report on basis of Mobile Banking Services of First Security Islami Bank
Ltd. I have done this report as the requirement BBA program. My supervisor Salma Akhter
has assigned this topic. I choose First Security Islami Bank Limited for my study. I collected
information about Mobile Banking Services of First Security Islami Bank Ltd and prepared
this report. I have tried my level best to present my experience of the organization in this
report.

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1.4. Scope of the study

As I was an intern, my scope was limited and restricted for some purpose. I had maintained
some official formality for the collection of data of my report. This study will give a clear
idea about the financial performance of First Security Islami Bank Ltd. Finally, the financial
position of the bank on its last couple of year’s performance is collected from the annual
reports. There are some other scopes that help me to learn more about the bank.

 Information availability because of online banking.

 Good communication system.
 Have a wide area of gaining knowledge.
 Good working environment.

1.5. Limitations of the report

As a financial institution every bank has to maintain high level privacy for each and every
task. It is quite difficult to get a clear picture about all the operations of banking business
within a short period of time. So, the study is simply able to give an idea not the whole
picture. Due to the bank’s policy of maintain security, I did not get the opportunity to collect
information regarding all departments. Other Limitations are given below.

 45 days’ time is not enough for such an extensive study. It is very difficult to collect

all the required information in such a short period.

 Lack availability of data sources.

 There are different departments like accounts, cash, general banking, foreign

remittance and etc. For this reason, it is difficult to collect information of all the

departments within a short period of time.

 Up-to-date information was not available.

 Don’t give the data from there source document.

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 Chapter- 2

An Overview of the Organization

2.1. An Overview of the Organization

First Security Islami Bank Limited (FSIBL) was incorporated in Bangladesh on 29 August
1999 as a banking company under Companies Act 1994 to carry on banking business. It
obtained permission from Bangladesh Bank on 22 September 1999 to commence its business.
The commercial banking activities of the bank encompass a wide range of services including
accepting deposits, making loans, discounting bills, conducting money transfer and foreign
exchange transactions, and performing other related services such as safe keeping, collections
and issuing guarantees, acceptances and letter of credit. The company philosophy “A step
ahead in time” has been precisely the essence of the legend of Asian success; the bank has
been operating with talented and brilliant personnel, equipment with modern technology so as
to make it most efficient to meet the challenges of 21st century. At first in 1999 the bank
incorporated as First Security Bank Ltd. and then in January 01, 2009 the bank changes its
name and mode of business and incorporated as First Security Islami Bank Ltd.

2.2 Vision

To be the premier financial institution in the country based on Islamic Shari'ah by providing
high quality products and excellence services backed by latest technology and a team of
highly motivated personnel to deliver excellence in banking services.

2.3. Mission

 To contribute to the socio-economic development of the country.

 To attain the highest level of satisfaction through the extension of services by
dedicated and motivated professionals.
 To maintain continuous growth of market share by ensuring quality
 To ensure ethics and transparency in all levels.

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  To ensure sustainable growth and establish full value of the honorable shareholders
 Above all, to contribute effectively to the national economy.

2.4. Core Values

 We trust in the Almighty Allah.

 We adherence to the spirit of islami Shari'ah

 We believe in integrity, transparency and accountability

 We ensure our client's expectations by anticipating their needs and responding with a

sense of urgency.

 We approach business decisions with an emphasis on long term growth and

sustainable profit.

 We communicate with candor and transparency to provide the best services.

 We believe that commitment to our faith and families is fundamental to the overall

culture of our institution.

 We share business plan and encourage two way communications.

 We work together as a term internally and collaborate externally with our customers

to meet or exceed their expectations and help them reach their goals.

 We believe that acting with integrity, servicing our clients with utmost care and

working with them in a collaborative way bring respect, loyalty and trust.

 We provide for the welfare of our customers and team members- not only physical

safety, but financial safety and security as well.

 We work for the economic emancipation and alleviation of poverty from our country.

 We contribute to the economic development and nation-building activities of our

country.

 We uphold the name and fame of the bank and the country through international

trade.

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  We work for value additional to the investment of the valued shareholders.

2.5. Strategies

 To achieve our customer’s best satisfaction & win their confidence.

 To manage & operate the bank in the most effective manner.
 To identify customer’s need & monitor their perception towards meeting those
requirements.
 To review & update policies, procedures & practices to enhance the ability to extend
better customer services.
 To train & develop all employees & provide them adequate resources so that
customers can reasonably addressed.
 To promote organizational efficiency by disclosing company plans policies &
procedures openly to the employees in a timely fashion.
 To ensure a congenial working environment.
 To diversify portfolio in both retail & wholesale market.

2.6. Mobile Banking

Features of FSIBL Mobile Banking are convenient, faster electronic fund transfer, safe
payment system, cash withdrawal, fund transfer facilities, widely available throughout the
Country, simple account opening.

2.7. SMS Banking

First Security Islami Bank welcomes to access banking needs from anywhere anytime. It is
indeed a fast, secure, convenient and quickest way of banking. The service is available round
the clock 24×7 a week. People can get real-time banking information and in touch any time
with FSIBL from their mobile. They can check balance, account information, or even get
mini account statements through FSIBL SMS banking service.

2.8. ATM Banking

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First Security Islami Bank Ltd. has implemented successfully Automated Teller Machine
(ATM) card transaction from June 25, 2008. Through Automated Teller Machine (ATM)
/Debit card, customer can avail the facilities like withdrawal money, balance inquiry and
purchase goods from Point of sale (POS)

Chapter-3

Methodology of the Study: Data and Methods

3.1 Methodology of the Study: Data and Methods

This report has been prepared on the basis of experience gained during the period of
internship. Data has been collected from primary as well secondary sources.

Primary Sources

 Face to face conversation with bank officers.

 Questionnaire.
 Personal observation – during bank hour.
 Discussion with the bank personnel.
 Work in different departments of the bank- accounts opening, accounts, clearing, cash
& remittance departments.
 Face to face conversation with the client.
 Facing some practical situation related with the day to day banking activities.

Secondary Sources

 Banks financial statement

 Monthly transaction record of the bank
 Annual Reports
 Web Sites
 FSIB published documents

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 Chapter-4

FSIBL Cloud & SMS Banking

4.1. FSIBL Cloud Banking

FSIBL Cloud Banking refers to provision and ailment of banking- and financial services with
the help of mobile telecommunication devices. The scope of offered services may include
facilities to conduct bank and stock market transactions, to administer accounts and to access
customized information.

4.1.1. Transactional Feature

 Fund Transfer Facility within FSIBL

a) Own Account, b) Other Account
 Fund Transfer Facility to another bank account through
a) BEFTN, b) RTGS
 Utility Bill Payment
a) DESCO, b) Dhaka WASA, c) DPDC
 QR Payment to Merchant Account
 Mobile Airtime Recharge to all TELCO in Bangladesh

4.1.2. How to Get FSIBL Cloud?

Step 1: Download & Send registration request from Login Screen.

Step 2: After successfully submission, please contact with your branch and collect your
customer ID.

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Step 3: You will receive User ID, Password & T-PIN in your registered e-mail. Use last 4
Digit of your customer ID to open the email attachment.

4.1.3. SECURITY TIPS

 Do not share your password with anyone else

 Do not use the “save password option” on your device.
 Do not write down any password or reveal it to anyone, including bank associates.
 Change your password regularly. We recommend changing your password every 60
days.
 After 3 failed attempt your ID will be locked
 Always download application from trusted source.
 For any query, please e-mail: [email protected]
 For further detail please visit- www.fsiblbd.com

4.1.4. Other Features

 Profile Account Information.

 All Branches and ATM booths Location.
 FSIBL all Products details & request of account opening.
 EMI, MTDR Calculator.
 Exchange rate (USD, EURO etc.)
 Contacts info. (Head Office and Branches).
 Standing Instructions.
 Misc. Request and many more …

4.1.5. How We Protect You?

 FSIBL Cloud banking ensures the highest level of security by tagging your device’s
IMEI number.

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  For Fund transfer T-PIN (Transaction PIN) and 2FA (2 Factor Authentication) will be
applicable.
 We never store personal or account information on your phone
 All transactions are encrypted with the same secure technology as online banking
 FSIBL CLOUD Acts as “a friend in need” by allowing you to do Banking 24/7.

4.2.1 SMS banking

SMS banking is a form of mobile banking. It is a facility used by some banks or other
financial institutions to send messages (also called notifications or alerts) to customers'
mobile phones using SMS messaging, or a service provided by them which enables
customers to perform some financial transactions using SMS.

4.2.2. SMS banking solutions offer customers a range of functionality-

 Account balance enquiry;

 Mini statement request;
 Electronic bill payment;
 Transfers between customer's own accounts, like moving money from a savings
account to a current account to fund a cheque;
 Stop payment instruction on a cheque;
 Requesting for an ATM card or credit card to be suspended;
 De-activating a credit or debit card when it is lost or the PIN is known to be
compromised;
 Foreign currency exchange rates enquiry;
 Fixed deposit interest rates enquiry.

4.2.3. Concerns

There is a very real possibility for fraud when SMS banking is involved, as SMS uses
insecure encryption and is easily spoof able. Supporters of SMS banking claim that while

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SMS banking is not as secure as other conventional banking channels, like the ATM and
internet banking, the SMS banking channel is not intended to be used for very high-risk
transactions.

Chapter-5

Result and Discussion

5.1. SWOT Analysis of FSIBL

SWOT analysis means strengths, weaknesses, opportunities and threats analysis of company.
It is very important for a bank to know the strength and opportunities they have. On the other
hand, weakness and threats is the area bank need to improve. Here SWOT analysis of FSIBL
bank are given below-

Strengths:

 First strength is that it is a Shariah based bank.

 By this time it has established an integral, customer friendly relationship with its

clients

 It has prominent saving scheme named DPS for a fixed or lower income group of

 people of this society.

 It provides services even after the banking hour to special clients.

 Sound profitability growth and high assets.Experienced management team.

 Honest, sincere and dedicated employee competency.

 Wide market share and stable source of fund.

 High attention on recovery of overdue amount and or pre-overdue situation.

 High attention on individual performance.

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  High attention on making quality investment and disposal of proposals.

 All the officials are dedicated and honest to serve their own duty.

 As a whole the human resource is the main capital of the division.

 Business ethics of the division is similar to the ethics and values of mass people of our

country.

Weaknesses:

 Traditional network system and lack of full scale automation.

 Poor marketing of investment products.
 Lack of required information specifically on SME.
 No growth on carrier advancement. So the employee wants to switch elsewhere.
 FSIBL Bank Ltd. does not have an individual marketing department.
 They have limited advertising strategy on behalf on their bank and accompanied by
conservatism rule in this sector.
 FSIBL Bank Ltd. does not use the share mode of investment.

Opportunities:

 Scope of market penetration through diversified investment products.

 Increasing awareness of Islamic banking among the clients.
 Scope develops new committed entrepreneurs.
 Country wide branches having wide opportunities to access in different kinds of
business.
 Service charges in other banks are comparatively higher than FSIBL Bank Ltd.
 No other banks could provide as much integral working atmosphere as FSIBL Bank
Ltd.
 Bank introduce Islamic card, which is a first time in Bangladesh.

Threats/ Challenges:

 Because of the intense competition, most of the competitor banks of FSIBL Bank Ltd.
are coming up with new service line ATM.

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  The competitor banks of FSIBL Bank Ltd. have more geographical coverage than
FSIBL Bank Ltd.
 State law defers with the Islamic Shariah.
 In the money market of Bangladesh there is no call money system of Islamic Shariah.
 Some other conventional banks have opened their Islamic banking branch.

5.2. Cost Volume Profit Analysis

The main benefits of FSIBL Cloud & SMS banking is the amount of time thus money it
saves. Although

FSIBL Cloud & SMS banking is restricted to managing account and making internet
transactions, it cuts out much of the needs to personal visit to bank. Using FSIBL & SMS
banking will also increase the efficiency of paying money bills, debt and wages as it reduces
the need for writing and sending cheque. Where it can take five days to take clear. Wages and
salary payments are also easy with this. FSIBL Cloud & SMS banking is able to offers
customers higher interest rates than high street banks due to their reduced overhead. Though
FSIBL Cloud & SMS banking of First Security Islami Bank Ltd has taken an investment of
more money but now operating expense will be much lower.

Again, also customers will be satisfied through fast, accurate, easy to use, and comprehensive
delivery of services.

5.3. Findings

 As FSIBL Cloud is a new service First Security Islami BANK LTD is trying to
increasing their services security and enforcing comprehensive applications in it.
 The bank expert has determining that this sector will take by 100 percent customers
who will play a vital role in banking growth and as well as financial sector.
 As giving emphasize from Bangladesh bank it will develop easily. As a forecasting
result Bangladesh Bank has already develop automated clearing house.
 Already bank authority is also taking initiatives to train up their employee to provide
the better service .IT is also now over viewing that customer efficiency and
satisfactions are also increasing gradually.

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  Several training programs had been initiated to make the employees capable to serve
the FSIBL & SMS banking need of the customers of First Security Islami BANK
LTD.
 People are being more interested in this modern digital banking system as the rate of
mobile user is increasing.

Chapter-6

Recommendations and Conclusion

Recommendations
 Major problems in a business arise when it's new. The officer should observe that
whether there is loss of the top executive, demand, or any other most important new
one has entered and often the change may be worse.
 FSIBL should advertise more for attracting all level of customers.
 FSIBL should encourage students for mobile account opening because students are a
potential source for a bank.
 FSIBL should increase facility to fulfillment customers need.
 Bank should also be aware of significant changes in the training of M-Banking officer
 Real value of business can come from making regular visit to the customer's place of
business rather than holding all meetings in the bank.
 Should arrange more and more campaign in public place to increase FSIBL Cloud &
SMS Banking customer
 Advertisement should increase through Radio, Newspaper, Poster, and Banner.

Conclusion

For service providers, Mobile Banking offers the next surest way to achieve growth.
Countries like Bangladesh where mobile penetration is nearing saturation, mobile banking is
helping service providers increase revenues from the now static subscriber base. Also service
providers are increasingly using the complexity of their supported mobile banking services to
attract new customers and retain old ones. For the fact is that one day, in most of the world
emerging markets, more people will use mobile phones than today peoples are using.

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Business that is based on mobile financial serviced will thus be a natural fit for these
economies. What is more, there is no need to wait for the next generation mobile networks;
these businesses can be built using today's technology. But to capture this significant
opportunity, financial firms and telecommunications companies will have to partnerships
with one another and, possibly, with merchants and retails chains as well. First Security
Islami Bank is pioneer of Banking in Bangladesh and it has a lot of possibility to reach
customers door as well as banking in the hand of customers

References

 First Security Islami Bank Limited, Accessed 20 February 2020,

(http://www.fsiblbd.com/).

 Bangladesh Bank, Islamic Banking, Accessed 21 February 2020.

(https://www.bb.org.bd/pub/quaterly/islamic_banking/jul_sep_2018.pdf).

 First Security Islami Bank Limited, Account Open Form, Accessed 20 February 2020.

 First Security Islami Bank Limited, Annual Report, Accessed 21 February 2020

(http://www.fsiblbd.com/wp-content/uploads/2017/03/Yearly-Financial-Statement-

2016.compressed-2.pdf).

 (http://www.fsiblbd.com/wp-content/uploads/2017/04/Yearly-Financial-Statement-

2016-c-2.pdf).

 First Security Islami Bank Limited, Accessed 20 February 2020,

(http://www.fsiblbd.com/).

 BSS, Islamic banking moving fast, Accessed 21 February 2020.

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