I have the opportunity to work in Social Islami Bank Limited for 13 weeks under the supervision of Mohammad Amzad Hossain (Assistant Vice President) at Dhanmondi Branch. He has effectively completed his entry level position program at Social Islami Bank Ltd, has arranged this temporary employment relationship under my immediate supervision. The report talks about the background of three months work in Social Islami Bank Limited (SIBL).
My overall experience has been extremely intriguing and I trust the temporary work period at Social Islami Bank Ltd. For planning my temporary job I am placed in Social Islami Bank Limited, Dhanmondi branch, Dhaka. After the peak of the entry level position, I will give everything I learn to show the details about Loan Processing Evaluation, Investment Evaluation, Tracking and Recovery Procedure of Social Islami Bank Limited.
Origin of the report
The branch activity part will describe the item and administration given to customers by a branch.
Background of the study
Scope of the Study
Objectives of the Report
Methodology
Data Collection
Sample Size
Data Analysis
Scope of the study
Limitation
The Organization Overview
Introduction
- History of Bank
- Overall Operational goals
- Mission of SIBL
- Vision of SIBL
- Objectives of SIBL
- Functions of SIBL
- Products & Services
- Corporate Management Structure
Social Islami Bank Limited (SIBL) was consolidated on the fifth of July, 1995 due to the committed effort of a gathering of accomplished Bangladeshi businessmen and universal bidding identities. The bank started the business task on 22nd November 1995 with a reasonable proclamation to show the operational importance of especially finance, savings and budget exercises as an incorporated piece of Islamic code of life. The formal business area, this bank, among others, will offer the most cutting-edge savings benefits through opening various kinds of store and venture accounts, financing exchange, issuing insurance letters, opening investment letters, accumulating bills affecting the household and universal exchange, gear rental and buyer's durables, call purchase and portion agreements for capital products, interest in minimal efforts and directors in real homes, participating interest in various mechanical, agricultural, transportation, instructional and wellness projects, etc.
In the non-formal non-corporate area, it will, inter alia, include in real money the WAQF Certificate and Advancement and WAQF and Mosque property managers, and Trust reserves. Social Islami Bank Limited (SIBL) is a money saving organization registered under the Organizations Act 1994 with its head office at 15 Dilkusha C/A, Dhaka-1000. The bank operates as a scheduled bank under a money saving permit issued by the Bangladesh Bank, the country's Central Bank.
Empowering the poor group by opening the doors of wages and additionally empowering the rich group for a superior age in the future. In SIBL's venture to continued greatness, it is endeavoring to complete the nation's leading Islamic Bank by providing advance administration of a wide variety of items and administrations of considerable value involved that address the needs of its clients; conducting its business morally according to the laws of Sharia increasing the best use of the newest most current agreements in the classroom by creating a dynamic authoritative culture dependent on healthy society, reasonableness, common understanding and assertive initiative , stay open to new things. . To coordinate these three areas the Bank's operational exercises with various "Social Allocation and Investment Schemes" or "Social Fund" considered willfully and highly regulated to make them financially and morally "direct" and "uncovered ".
Empowering the group of the poor by getting the salary to open doors and fortify the group of the rich for a superior future age. Provision of loans and advances to the individual firms and organizations to enable and create exchange, trade and ventures and other profitable exercises in the nation.
Chapter-03
Theoretical Framework
Introduction
- Types of advance as per Bangladesh Bank Criteria for Investment Classification
In Bangladesh, the quality of the savings framework is exceptionally essential in light of the fact that the capital market is minimally created here. Since the banks have been the real sources of investment so far and exert an incredible impact on the fiscal framework, it is crucial that national accounts management is sound in the light of a legitimate concern for venture activities that meet the needs of a wide range of countries provided. of funds and related issues. Speculation: The board is a dynamic field where a specific standard of long-term arrangements is expected to divide the reserve into different fields and limit the danger and increase the arrival at the contributed store.
Industry analysis includes before expanding investment in a zone, basically the large business conditions of that region or area are analyzed, prospects and problems are discovered by the banking authorities. A loan that does not have a specific repayment plan but contains an expiry date, investment limit and so on will be termed as a continuous loan e. A loan that is considered to be repayable only after the banks enforce it will be termed as a demand loan.
In the event that contingency or other risk is switched to Compulsory credit or Compulsory Loan (i.e. the credit without having earlier endorsement as a standard advance) it will be called Demand Loan at that stage, e.g. The advance which is repayable within a specific time frame as per the repayment calendar will be termed as Fixed Term Loan.
Short Term Agricultural and Micro-Investment
- Loan Sanction and Approval Procedure
- Investment policy
- General Policies
- Investment pricing
- Investment Assessment
- Approval Authority of the investment policies
- Investment Performance of SIBL
- Investment Administration Department
- Disbursement process
List here the dangers associated with a specific investment and provide an assessment of the budgetary soundness and value of the borrower. The proposal contains: Name of the borrower(s), Nature of the credit, Purpose of the credit, Size of the credit, Collateral, Margin, Intrigue percentage, Repayment schedule and Validity. After issuing the authorization guidelines, the bank will collect important payment information.
The investment is finally released by the branch through the investment account in favor of the borrower and the verification of the investment officially begins. The regulation of risk capital is a certain principle that will control the total speculation of the bank. The valuation of the speculative item will be prudently and appropriately carried out taking into account the bank interest rate, the cost of trade, the risk factor involved, the current cost of the account segment management venture, the relationship between the demand and supply of the speculative items, the social-monetary effect of the objects of speculation and the national needs, flexibility and competitiveness will be also thought out to ensure that the valuation is properly focused on the simple presentation of items to ensure a reasonable rate of return and in addition to preserve the social welfare goals of outstanding ventures.
The RM should own the client relationship and be considered trustworthy to ensure the accuracy of the entire submitted business proposal. After RM's proposal is received, the Investment Approval department of Investment Risk Management will find a way to obtain approval of the proposal from the Managing Chief, the Executive Committee of the Board of Directors and the Board of Directors, depending on the optional intensity of the expert involved as recorded. from the Bank's Board of Directors. In the year 2017, the bank has prepared a business progression plan, both current and long-term, to increase the bank's retail base in line with the mandates of Bangladesh Bank.
The Branch Payout Cell will be responsible for providing office approval, as far as possible. Under no circumstances should the issuing cell distribute the amount without permission from the head office. Documents must be captured in the Document Execution registry and stored securely in the Safe Out recorder.
The Branch control and recovery unit will be responsible for Monitoring and Recovery of the Branch's delayed data.
FINANCIAL ANALYSIS
Introduction
- Annual report of Social Islami Bank Limited for the year 2016- 2017
- Financial Statement of 2012 and 2016 of SIBL
- Investment and ratio analysis
From this table we have seen that the rate change per store is 72.01% and the development rate is 27.05%. In the speculation part, we found out that the rate change for entrepreneurship is 96.74% and the rate of development is 24.30%. Moreover, the last one is the labor benefit which is changes in the rate of 80.83% and the rate of development is 22.34%.
The bank is required to maintain a minimum credit balance with Bangladesh Bank. including BB TT in transit). The bank has effectively maintained a capital adequacy ratio (CAR) of 12.32% (consolidated) against the required CAR of 10% under the BASEL-II capital accord.
Credit Risk/ Investment Risk
Capital Management of the Bank
The bank started its journey in 1995 with a paid up capital of Taka 118.36 million and from that point within 20 years, it has fabricated a total capital of Taka 16916.08 million by leveraging external and internal resources. We have seen that in 2012 the rate of development was 19.52%, but in 2017 we have seen that the rate of development is expanding with a significant amount which is 29.34%. it is a positive sign for the bank and its speculative activity.
Investment Caps
Recommendation and Conclusion
- Major Findings
- Recommendations
- Conclusion
- References
As a result of political association, the bank is obliged to give credits in a portion of the cases, which are recovered from time to time. The managers of the bank should examine their frameworks, arrangements, procedures and item costs in accordance with the changing business sector reality. The Bank should plan separate SME financing rules and upgrade Investment Office to this section.
For observation and assessment of the current status of all the section for exclusion there is missing. As another part of the monetary strategy, investment is essential to any budget foundation as it creates benefit and equipments financial exercises of the nation. At the end of the day, Investment is a business element and it is a contribution to the creation procedure of the nation.
Since Investment carries an inalienable risk, legal use of the advances is consequently basic to meet the needs of the borrower. In such a way, the bank should almost aim to promote the advance and the manner in which the borrower uses the assets. In the appraisal forms, the bank will decide any false exercises in relation to the borrower.
The bank is constantly trying to improve its investment arrangement to limit the disaster and expand the profitability and various measures have tried to build the investment framework of the executives. The investigation depends on examining the position of speculation and the rate of development of SIBL.
