Here is the report on titled the overall foreign exchange activities of AAA-Arafat Islam Bank Ltd (BAIL), Bangladesh-a comprehensive study. Prepared for you as a final report of the semester. It took one month to prepare the report and we have tried to gather as much information as possible within this limited time. Although the stipulated time is not enough to have in depth knowledge about the real corporate world, this report give mi much insight in Islamic banking practiced by the conventional banks like (BAIL). I would like to thank you for giving us the opportunity to prepare this report under your sincere guidance and cooperation.
Thank you, Sincerely yours, Acknowledgement A lot of concentration, effort, responsibility and study have been involved in preparing this paper into realty. In preparing a report one need a number of assistance and guidance from reliable sources. This report also stands on the basis of such efforts. I have pleasure to express my gratitude to my grope members. In preparing the report, I received active co-operation from the UP responsible as a manager, 1st APP Responsible as a second officer, Officer of AAA-Arafat Islam Bank (BAIL).
To earn practical experience and knowledge about the banking operations and corporate functions performed by Al- Arafat Islam Bank Limited. B. Specific Objectives: To submit a brief description about the performance of AAA-Arafat Islam Bank Ltd. To make a general evaluation of BAIL activities among different professionals. To understand the various services the bank offers and to understand the mechanism of the services. To analyze the Ratio of the bank to evaluate the performance To identify the strengths and weakness, opportunities and threats of Al- Arafat Islam Bank Ltd.
To know about the conventional banking and their operation. To know about the Islamic banking and their operation. To suggest remedial measurement for the improvement of the whole process of the Al- Arafat Islam Bank Ltd. To formulate recommendations that could add value to the service of Al- Arafat Islam Bank Ltd. 5. Scope of the Report This report helps me to understand the clear real-time experience about the total management of BAIL. It helps me to understand, how the bank manages its total recesses.
It also helps me to understand how they deal with the customers as well as the foreign policy of their bank like- the process of doing LLC and export & import etc. 6. Information Needs In order to conduct this research project and fulfill the research objectives the following information will be required: Information about AAA Arafat Islam Bank Limited Information about the facility provided by BAIL Information about the Job characteristics Information about compensation and benefits policy General information about the employees of BAIL General information about motivation concepts
Information about the different wings of BP & head office of BAIL Information about the expectation of the employees’ of BAIL To know the financial performance of the bank To know the work of general banking system of the bank Methodology: A Research may be conducted either exploratory or conclusive. Based upon the research topic and environment scenario I have decided to conduct exploratory research. To conduct the research I have collected two types of data. A) Primary Data and B) Secondary Data. A sample survey was conducted to collect primary data using two pre-designed 8. Sources of data I have collected both primary and secondary data.
I collected Secondary data from prior records of BAIL. I have collected primary information by interviewing employees, managers via the process assigned by BAIL, observing various organizational procedures, structures, directly communicating with the customer’s. A. Primary Source of Information When searching in the field directly to collect data was called primary sources of data. I collected data from primary sources using the following method: a. Observation method b. Interview method Now mention some primary points: – Open ended and close ended questions Personal experience gained by visiting, different desks
Personal investigation with bankers Face to face communication with employees of the BAIL. B. Secondary Sources of Data The secondary data had been collected from the MIS of HASH. To clarify different secondary sources such as office memo, operating manuals, circulation & publication used by the HASH in this regard. (1). Internal Sources 1. Bank’s Annual Report 2. Group Business Principal manual 3. Group Instruction Manual & Business Instruction Manual 4. Prior research report 5. Any information regarding the Banking sector. (2). External Sources 1 . Different books and periodicals related to the banking sector 2.
Bangladesh Bank Report 3. Newspapers. Previous reports and Journals relevant to the banking industry Other published documents of Bangladesh Bank Relevant BAIL paper and published documents. Annual reports of 2006, 2007. 9. Data collection procedures: The following procedures have been used to collect data with the respective instruments for conducting the research paper. A. Collection of Primary data: For collecting primary data personal interview technique have been used through a set of organized and structured questionnaire with mostly close-ended and open-ended questions as the instruments. Employees at different levels of AAA Arafat Islam Bank Limited are interviewed through formal and informal way. B. Collection of Secondary data: In order to collect the secondary data different related printed materials like corporate profile, annual report 2007-2008 and the official web site has Behavior, Business Research, and Basic Business Communication) also have been used. 10. Data Processing & Analysis After collecting all the required data, question area has been coded and data processing has been done according to the employees’ personal information, experience, preference, satisfaction level etc. For analyzing purpose.
MS Word had been used to prepare graphical representation and the graphs have been interpreted accordingly. 11. Limitation of the Report Time frame for the research is very limited. Large-scale research is not possible due to constraints and restrictions posed by the organization. The research only covers the employees of Attar Model Town Branch, Dacha. The survey was limited to the employees of General banking and Foreign Exchange Division. Respondents were busy as well as reluctant to go through the process of questionnaire. The respondents sometimes did not agreeable in providing accurate statistics and information .
Historical Background of AAA Arafat Islam Bank: With the objective of achieving success in the life here and hereafter following the way directed by the Holy Quart and the path shown by Ursula (SMS) AAA Arafat Islam Bank Ltd was established (registered) as a public limited company on 18 June 1995. It started business on 27 September of that year with an authorized capital of TX 1,000 million. At inception, its paid up capital was TX 101. 20 million divided into 101,200 ordinary shares of TX 1,000 each. 23 sponsors of the bank subscribed the total issued capital.
In 2000, the paid up capital of the bank increased to TX 253 million, of which TX 126. 50 million were paid by the promoters/sponsors and TX 126. 50 million by the general public. In compliance with the new provision, AAA Arafat bank has raised its capital and reserve from TX. 2245 million in the year 2007 to TX 3049. 34 million in 2008 by declaring 30% stock dividend out of the profit of the 2008. The paid up capital of the bank has stood at TX. 1383. 81 million at 31st December 2008. Renowned Islamic Scholars and pious businessmen of the country are the sponsors of the Bank. 00% of paid up capital is being owned by local shareholders. In 2008 the bank earned a net profit before tax & provision of TX. ,528. 10 million which is 102. 08% higher than the previous year. The bank is listed in the two stock exchanges of the country and has offered 126,000 shares for subscription and trading by the public. AAA-Arafat Bank is an interest-free Shari bank and its modus operandi is substantially different from those of regular commercial banks. The bank however, renders all types of commercial banking services under the regulation of the Bank Companies Act 1991.
It conducts its business on the principles of muskrat, ABA- maharajah, ABA-musical and hire purchase transactions. A Shari Council of the bank maintains constant vigilance to ensure that the activities of the bank are being conducted according to the precepts of Islam.. Objectives of BAIL: AAA-Arafat Islam Bank Limited is Islamic Banking institutions that operates with the objectives t implement and materialize the economic and financial principles of Islamic in the banking arena. The objectives of BAIL are not only to earn profit, but also to do good and welfare to the people.
The main objectives of BAIL are listed below- To conduct interest free banking To establish participatory banking instead of banking on debtor creditor relationship deposits on profit loss sharing basis To establish as welfare-oriented banking system To extend co-operation to the poor, the helpless and the low income group for their economic up lifetime To play a vital role in human development and employment generation To contribute towards balances growth and development of the country through investment operations particularly in the less developed areas To contribute in achieving the ultimate goal of Islamic economic System. 0. Corporate Culture: This bank is one of the most disciplined Banks with a distinctive corporate culture. Here they believe in shared meaning, shared understanding and shared sense making. Their people can see and understand events, activities, objects and situation in a distinctive way. They mould their manners and etiquette, character individually to suit the purpose of the Bank and the needs of the customers who are of paramount importance to us. The people in the Bank see themselves as a tight knit team/family that believes in working together for growth.
The corporate culture they belong has not been imposed; it has rather been achieved through their corporate conduct 3. Mission: Achieving the satisfaction of Almighty Allah both here & hereafter. Proliferation of Shari Based Banking Practices. Quality financial services adopting the latest technology. Fast and efficient customer services. Maintaining high standard of business ethics. Balanced growth. Steady & competitive return on shareholders’ equity. Innovation banking at a competitive price. Attract and retain quality human resources. Extending competitive compensation packages to the employees.
Firm commitment to the growth of national economy. Involving more in Micro & SEEM financing. 4. Vision: To be a pioneer in Islam Banking in Bangladesh and contribute significantly to the growth of the national economy. To improve Banker- Customer relationship through improving customer service. To develop new and innovate product/service through integration of technology and policy and principle. 5. Commitments: Ours is a customers focused modern Islamic Banking making sound and steady growth in both monopolizing deposit and making quality Investment to keep our position as a leading Islamic bank in Bangladesh.
To deliver financial services with the touch of our heart to retail, small and medium scale enterprises, as well as corporation clients through our branches across the country. Our business initiatives are designed to match the changing trade & industrial needs of the clients. For any financial and non-financial organization, Management are 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 in BAIL are discussed below. Planning BAIL has done its planning within the preview of the corporate plan. The overall planning approach in BAIL is top to bottom. Each branch can plan according to the goal imposed by the corporate level. It doesn’t plan independently. And, BAIL has a planning sector. This department is mainly responsible for the overall planning. Organizing BIB is organized as per the existing business locations. It has fifty branches, each of which is a separate entity.
Each unit is responsible for its own performance and each is headed at least by a Senior Assistant Vice President (SAVE) in designation followed by Manager (Operations). He is directly responsible for the performance of their unit. Within each branch, it is organized functionally. Staffing The recruitment in BAIL is done in two ways. One as a “Provisional Officer” for the management program and it has a probation period of two years. Another one is non-management level as “Trainee Officers”. Provisional Officers are recruited in officer category and their career path is headed towards different managerial Jobs.
Directing The management approach in BAIL is top-down or authoritative. Each information seeks through lower management layer. Works are designed in such a way that one cannot leave without clearing the tasks as he is assigned for a day. Sitting arrangement in all offices is done in a way that the superior can monitor the subordinate all time. Manager (HOB) and Manager Operation all time watch the operation of the bank through C camera. Security is maintained properly. Budgeting, rewarding, punishing, etc. Are also practiced as control mechanism.
Controlling BAIL does not believe in the traditional banking. It tries to increase and maintain its market share in the private banking sector through two types of control techniques: Feed Forward Control Feedback Control Feedback control technique monitor outputs of a process and feed into the system to obtain desired outputs. On the other hand feed forward control technique monitor inputs into a process to ascertain weather these are as planned or not. If they are not, the inputs are changed in order to get the desired result. 0.
Distribution of Branches: BAIL started its working at 161; Mitchell C/A with a Branch named Mitchell Branch on 27th September, 1995 was the first & main Branch of BAIL and has been operating throughout the country. The Head Office of the Bank was situated at the same holding of Mitchell Branch since its establishment but from 11 January, 2007 it has started its working at its own premises 36, Dullish (6th, 7th, 8th & 9th floor), Dacha-1000. The age of the Bank is only 11 years and during this short period of time, the Bank has established total 46 Branches over the country and made a smooth outwork inside the country.
The number of Branches as Division wise is mentioned in the following table: Division No. Of Branches 24 Chitchatting Division 11 Rajahs Division 4 Chula Division Sylphs Division 6 Barista Division Total 50 21 . Alba’s Products and Services: AAA-Arafat Islam Bank Limited is providing many product and services to satisfy their customers. For that reason, BAIL has made significant progress in all areas of its operations within a short period of time, such as deposit manipulation, credit management, remittance handling and foreign exchange and trade.
