Overall Activities of  Shahjalal Islami Bank Limited
Subject: Banking | Topics:


A variety of banking model has been developed all over the world. What over the nature & scope of the models all of the work on the basis of interest. The most remarkable and revolutionary development in the field of banking has been emergency of Islamic banks.

“Islamic bank is financial institution whose status, rules and procedures expressly state its commitment to the principles of Islamic Shariah and to the banning of the receipt and payment of interests on any of its operations”. (Definition of OIC).

The traditional banking system which is based on interest on all its deposits and lending operations is anti-Islamic as its perpetuates exploitations one class over other class in the society. It helps concentration of resources in the hands of already economically stronger classes. In case of no-institutional lending, it is the lenders who exploit and in case of institutional it is the borrowers who exploit.

Almighty Allah has permitted trade and prohibited “Reba” (interest), nut fear god, society. This was amply practiced by the prophet and his associated as proved by this Hadith.

“Oh, you who believe devour not usury doubled and multiplied, nut fear god, that you may really prosper. Fear the fire which is prepared for those who reject faith”

Islamic banking presupposed an Islamic society and an Islamic policy. A society bereft of faith in Allah and in Islamic values can hardly be able to establish an Islamic banking order and that is why Al-Quran has emphasized faith as the first prerequisite in setting up Islamic economic order “those who believe god” “those who do deeds of Righteousness” are the one who should come forward to help their brothers in society to do their business, to do their trade, to carry on all that is required to get the wheels of the society going.

In ensuing the smooth functioning the society the rule of money is of paramount importance and having recognized this importance the foreigners of Islamic history had come forward to invest this banking system at a time when

the present western world was drowned in darkness

Objectives of the study

The major objective of conducting the internship training is:

To acquiring a practical knowledge and personal observation about the overall credit section, procedure, functions, principles and its nature. Find out the activities and implication of Credit department of the Bank.

The specie objectives of conducting the internship training are:

  1.   To find out the position of Shahjalal Islami Bank Limited in the banking industry.
  2.   To find out how its present strategy is working.
  3.   To the the comparative performance of Shahjalal Islami Bank Limited and some other selected private commercial banks.
  4.   To know the successive position of each bank.
  5.   To analyze the bank’s performance in some key areas.
  6.   To find out existing problems of the bank.
  7.   To formulate alternative strategies for solving the problems.
  8.   To recommend some better solutions for solving the problems.
  9.   To formulate an implementation plan for the recommended steps.
  10.   To formulate a contingency plan as a safeguard for changing situation.

Researh Methodology

Research Design

Both descriptive and exploratory researches have been selected to analyze this paper. Here the researcher discussed the credit appraisal procedure of SJIBL and critically analyze the appraisal procedure with the standard one. Comparison analysis has also been taken part in this study.


A total number of 12 employees will be randomly selected for collecting data.

Data Collection Procedures:

There are two main sources of collecting data. To complete this report data has been collected from both primary and secondary sources.

Primary data:  Primary data will be gathering by personal observation and interviewing the office executives.

Secondary data: Some secondary data will also been collected to make the report more concrete. These data will be collect from different financial statements, annual reports, newspapers, books and business outlets and materials etc.

Study Plan:

The proposed study can be organized under three phases such as

Phase I:          Inception Phase

Phase II:         Survey/Data Collection Phase

Phase III:        Reporting Phase

  Phases                                     Activities

Phase I

Inception Phase

Collection and review of relevant documents/literature. Development of Data Collection Instruments (DCIs) and Techniques, Developing Guidelines for Focus Group Discussions (FGD).

Phase II

Survey/Data Collection Phase/Field Work

Deployment of Data gatherers, monitoring and supervision of the data collected though the field work, Development of Tabulation and Data Analysis, Plan and techniques, Field Data Collection.

Phase III

Reporting Phase

Editing data, Data Computation, Analysis of Data and Preparation of Tables and prepare graphical presentation.

Significance of the study

Historically Bangladeshi bank is suffering huge number of classified loan. As a result the burden of bad debt has a negative impact of their profitability as well as their new Investment. Many Financial Institutions are trying to avoid giving long-term loan to the Industries, especially in new industries. In this situation the concept of Syndicate Financing is new concept in Bangladesh. After successful completion of this study, it can be used to identify the performance of SJIBL and also invent new technique, which can be used to prevent a good loan to be a classified loan and these technique can also be used in other bank to get the same benefit.


Credit section is very important for any bank. Shahjalal Islami Bank Limited always focuses on Credit section to give facilities for its customer. So there is a scope for gathering experience and work in credit section. And also analyzing the credit performance of the organization, which will help to get practical knowledge on this credit department of the Shahjalal Islami Bank Limited.


To prepare this report, some limitations were faced, which are mentioned below.

Limitation of time                  :  It was one of the main constraints that

hindered to cover all aspects of the study.

Lack of Secondary                 :  The annual report was the main secondary

Information0source of information that was not

enough to complete the report and private the

reader a clear idea about the bank.

Limitation of the Scope          : While collecting data, they did not disclose

much information due to the confidentially of

the  organization.

 Brief History of Banking system

Evaluation of the word “Bank”

The word Bank originated from the Italian word “Banco”. Banco means long tool. In ancient time Italian Jews merchants used to do business of lending money by sitting on the tools. And it is assumed that the word “Bank” derived from the word “Banco” (tools. To meet the expense of war of 1171 one type credit certificate was lunched in Italy at an interest rate of 5%. It was called as “Minte” in Italian language and “Banke” in German Language. Then German Language was widely used in Italy. As a result, the word “Banke” gradually changed to the word “Banco”from which the word “Bank” originated.

Evolution of Bank 

The modern banking system is an evolutionary growth right from the Middle Ages. The genesis of modern bank lay in the functions performed by the Merchant with wide reputation commanding confidence far and near could easily finance domestic and foreign trade. The famous merchant houses established branches to trade centers at home and abroad began to use credit devises to accommodate their customers Jagath Seth, for example, had his branch office in London in the 18th century. Even earlier the indigenous hounds, which finance domestic trade in India was the innovations of the local merchants. In this credit operations in these credit operations in the ancient merchant houses lay the germs for the development of the important credit instrument lately known as bill of exchange and these merchants were virtually foreunncersof the modern exchange banks. The second ancestor of banks was the moneylender. The traditional shellac notorious for usury an edit necessity.

He was the man who could supply money through he charged heavily he did lending.  The lending business earned him bad name no doubt but he was dependable and trustworthy. People with surplus quite unaccustomed with money lending business and trade secrets could safely keep their surplus with the moneylender for investment by the letter on firms of a share of profit. The moneylender thus was an embryonic banker performing duel functions lending money and mobilization of savings. Exactly the modern bank does this as a lineal descendant of the ancient moneylender. The third in the chain of ancestors stood the goldsmith have safe vaults for the safe upkeep or their gold stocks. They were the embodiments of safety and security. Naturally, people with valuables and jewelers approached goldsmiths for safe custard. Initially the goldsmiths charged commission for safe upkeep. The practice later on changed as the goldsmith utilized the deposits for earning profits. The receipts provided to the depositors certifying the amount the value of the thing deposited became honorable

Documents as soon as the reputation and integrity of goldsmith became well known. The deposit receipts embryonic bank notes. The letter of instruction transferring the ownership of deposits became the cheques. Experience neither showed that all deposits were nor withdrawn simultaneously. The goldsmith was always left with a surplus above the normal withdraws. This enabled him to issue more credit instruments even in access of actual deposits. He could thus create deposits. A modern Bank then comes in itself the functions of all the there ancestors like the merchant it makes a specialty of financings foreign trade like the money lender collects savings and end like the goldsmith provides a convenient mechanism by which people can make payments to each other.

Banking structure in Bangladesh

Banking system of Bangladesh comprises of different types of bank and financial institutions. The name of our central bank is “Bangladesh Bank” it is the director and regulator of banking system of Bangladesh. Banking structure in Bangladesh is briefly described below.

  • Bangladesh Bank is the central bank of Bangladesh. It is director of money market in Bangladesh. It regulates the activities of other banks of Bangladesh through credit control, exchange control etc.
  • Commercial bank both the public and private sectors of commercial bank are active in Bangladesh. There are 4 nationalized commercial bank– Sonali Bank, Rupali Bank, Agrani Bank.
  • In 1983 priority gives on private sector of banking business. As a result two nationalize bank was handed over to private sector, which are Pubali and Uttara bank.
  • Now in our country a large number of private banks are doing banking business.

Hierarchy Analysis

Banking sector has a vital role to play in the economic activities and development of any country. This sector is much more important in a developing country like Bangladesh. The whole scenario of the economy of a country can be ascertained by examining the condition of the banking sector. In Bangladesh, the banking sector dominates the financial sector and macroeconomic management largely depends on the performance of the banking sector. Banking grew primarily in the public sector with main emphasis on restructuring of the financial system and development needs of the war-torn economy with gradual liberalization in subsequent years. It was increasingly felt that banks should be allowed in the private sector for giving a fillip to development process on the basis of private initiative. In the 80’s for the first time a number of banks in the private sector were allowed. Subsequently in the mid 90’s some more banks in private sector also commenced operations. Finally, in 1999, 3rd generation of private sector banks was given permission to operate. As a result while up to 80’s public sector banks dominated financial sector, banks in the private sector were given increased responsibility with the passage of time.

At present there are 51 scheduled banks operating all over the country. Out of these, 9 are state-owned (including five specialized banks), 29 are private commercial banks and the rest 13 are foreign commercial banks.

Private commercial banks are divided into three groups according to their commencement of business. They are familiar in the name of 1st generation, 2nd generation and 3rd generation banks.

Generation Banks (Established 1982-1988):

National Bank Limited, The City Bank Limited, United Commercial bank Limited, AB Bank Limited, IFIC Bank Limited, Islami Bank Bangladesh Limited and Al-Baraka Bank Bangladesh Limited.

 Generation Banks (Established 1992-1996):

Eastern Bank Limited, National Credit & Commerce Bank Limited, Southeast Bank Limited, Dhaka Bank Limited, Al Arafah Islami Bank Limited, Social Investment Bank Limited and Dutch-Bangla Bank Limited.

 Generation Banks (Established 1999 to present):

Mercantile Bank Limited, Standard Bank Limited, One Bank Limited, EXIM Bank Limited, Premier Bank Limited, Mutual Trust Bank Limited, First Security Bank Limited, Bank Asia Limited, the Trust Bank Limited, Jamuna Bank, and BRAC Bank, and Shahjalal Islami Bank Limited.

Hierarchy Analysis

Banking sector has a vital role to play in the economic activities and development of any country. This sector is much more important in a developing country like Bangladesh. The whole scenario of the economy of a country can be ascertained by examining the condition of the banking sector. In Bangladesh, the banking sector dominates the financial sector and macroeconomic management largely depends on the performance of the banking sector. Banking grew primarily in the public sector with main emphasis on restructuring of the financial system and development needs of the war-torn economy with gradual liberalization in subsequent years. It was increasingly felt that banks should be allowed in the private sector for giving a fillip to development process on the basis of private initiative. In the 80’s for the first time a number of banks in the private sector were allowed. Subsequently in the mid 90’s some more banks in private sector also commenced operations. Finally, in 1999, 3rd generation of private sector banks was given permission to operate. As a result while up to 80’s public sector banks dominated financial sector, banks in the private sector were given increased responsibility with the passage of time.

At present there are 51 scheduled banks operating all over the country. Out of these, 9 are state-owned (including five specialized banks), 29 are private commercial banks and the rest 13 are foreign commercial banks.

Private commercial banks are divided into three groups according to their commencement of business. They are familiar in the name of 1st generation, 2nd generation and 3rd generation banks.

 Generation Banks (Established 1982-1988):

National Bank Limited, The City Bank Limited, United Commercial bank Limited, AB Bank Limited, IFIC Bank Limited, Islami Bank Bangladesh Limited and Al-Baraka Bank Bangladesh Limited.

 Generation Banks (Established 1992-1996):

Eastern Bank Limited, National Credit & Commerce Bank Limited, Southeast Bank Limited, Dhaka Bank Limited, Al Arafah Islami Bank Limited, Social Investment Bank Limited and Dutch-Bangla Bank Limited.

 Generation Banks (Established 1999 to present):

Mercantile Bank Limited, Standard Bank Limited, One Bank Limited, EXIM Bank Limited, Premier Bank Limited, Mutual Trust Bank Limited, First Security Bank Limited, Bank Asia Limited, the Trust Bank Limited, Jamuna Bank, and BRAC Bank, and Shahjalal Islami Bank Limited.

 Islamic Banking Practice in Bangladesh

Honorable late president Ziaur Rahman at his time once announced that Bangladesh will be an Islamic country and will have to follow the Islamic economic system in its economic process. Then some high officials of Sonali Bank receiving black and white approval from Bangladesh Bank started to organize special training courses to establish Islamic banking in near future. Islamic bank was the first such kind of bank started operations from 1983.

As the second largest Muslim country in the world, the person of Bangladesh has shown warm response to Islamic banking system. Till February 1998 out of total 40 banks now operating in country .the number of Islamic banks in Bangladesh stands at 5.the Banks with Islamic shariah values have set a different trade in banking business in many Muslim nations of the world mostly on the Arab States. As Islamic Shariah refuses the concept of interest these Banks resorted to buying selling as well as profit and loss sharing concept and there fore strives to find truly profitable concerns to invest in. These purposively gets its management rid of bad loans .the principle has been manifested in high recovery rate of these Banks compared to all other Banks in the country including foreign ones.

 History of the Organization

Privatization of Banking is an outcome of the deliberate policy change by the government of Bangladesh in the late 1970. The emergence of Shahjalal Islami Bank Limited (SJIBL) was at the juncture of liberalization of global economic and Islamic activities, after the URUGUAY ROUND has been an important event in the financial sector of Bangladesh. The experience of the prosperous economies of the Muslim countries, in particular of South Asia, has been the driving force and the strategic operational policy option of the bank. The company philosophy – “A Bank with Shariah-Based on Banking” has been precisely an essence of the legend of success in the Muslim countries.

Shahjalal Islami Bank Limited is named after the name of a saint Hajrat Shahjalal ® who dedicated his life for the cause of peace in this world and hereafter and served the humanity. The prime objective of Shahjalal Islami Bank is to serve the people for attainment of their economic goal and success in life here and hereafter. Shahjalal Islami Bank stands not only for material well being but also for ethical development of its customers.

The Government of Bangladesh has licensed Shahjalal Islami Bank Ltd. (SJIBL) as a private commercial bank, which is focused on the established and emerging markets of Bangladesh.  The bank was incorporated in Bangladesh as a public limited company on April 01, 2001 under company Act 1994, and started banking operations through the “Dhaka Main Branch” at 58 Dilkusha C/A, Dhaka-1000 on May 10, 2001.

The Bank started commercial banking operations effective from May 10, 2001. During this short span of time the Bank had been successful to position itself as

a progressive and dynamic financial institution in the country. The Bank had been widely acclaimed by the business community, from small entrepreneur to

large traders and industrial conglomerates, including the top rated corporate borrowers for forward-looking business outlook and innovative financing solutions. Thus within this very short period of time it has been able to create an image for itself and has earned significant reputation in the country’s banking sector as a Bank with vision. Presently it has thirteen branches in operation.

Shahjalal Islami Bank Limited is one of the few banks permitted by the Bangladesh bank in the early 2000s, the other banks permitted earlier were Social Investment Bank Limited, First Security Bank Limited, Eastern Bank, Bank Asia, Jamuna Bank. These banks are known as the third generation banks and fortunate to remain immune from the bad loan culture. However, the performances of these banks are not the same, The Government of Bangladesh as a Scheduled Bank in the private sector has licensed Shahjalal Islami Bank Limited in pursuance of the policy of liberalization of banking and financial services and facilities in Bangladesh. In view of the above, the Bank within a period of 5 years of its operation achieved a remarkable success and met up capital adequacy requirement of Bangladesh bank. It has been growing faster as one of the leaders of the new generation banks in the private sector in respect of business and profitability as it is evident from the financial statements for the last 2 years.

 Special features of the Bank

Some special features of Shahjalal Islami Bank Limited are:

  • It has been performing Islamic commercial banking activity and striving to introduce dynamic Banking functions.
  • It is the pioneer in introducing and launching different customer friendly deposit schemes to tap the savings of the people for channel sings the same to the productive sectors of the economy.
  • For uplifting the standard of living of the limited income group of the population the Bank has introduced Consumer Credit Schemes by providing financial assistance in the form of loan to the consumers for procuring household durables, which have had encouraging responses.
  • The Bank is committed to continuous research and development so as to keep pace with Islamic banking.
  • The operations of the Bank are fully computerized so as to ensure quick, prompt flawless and services to the customers.
  • The Bank has introduced camera monitor system (CCTV) to strengthen the security services inside the Bank premises.

Functions of the Bank 

The primary function of SJIBL is to promote, foster and develop the application of Islamic principles in the business sector. More specifically, the functions of SJIBL when viewed in the context of its role in the economy are listed as follow:

  • Conduct interest-free banking.
  • Establish participatory banking instead of banking on debtor-creditor relationship.
  • Invest through different modes permitted under Islamic Shariah.
  • Accept deposits on profit-loss sharing basis.
  • Establish a welfare-oriented banking system.
  • Extended co-operation to the poor, the helpless and the low-income group for their economic upliftment.
  • Play a vital role in human development and employment generation.
  • Contribute towards balanced growth and development of the country through investment operations particularly in the less developed areas.
  • Contribute in achieving the ultimate goal of Islamic economic system.

Objectives of Organization

From time immemorial Banks principally did the functions of moneylenders or “Mohajans” but the functions and scope of modern banking are now a days very wide and different. They accept deposits and lend money like their ancestors, nevertheless, their role, as catalytic agent of economic development encompassing wide range of services is very important. Business commerce and industries in modern times cannot go without banks. There are people interested to abide by the injunctions of religions in all sphere of life including economic activities. Human being is value oriented and social science is not value-neutral. Shahjalal Islami Bank believes in moral and material development simultaneously. “Interest” or “Usury” has not been appreciated and accepted by “the Tawrat” of prophet Moses, “the Bible” of prophet Jesus and “the Quran” of Hazrat Muhammad (sm). Efforts are there to do banking without interest Shahjalal Islami Bank Limited avoids “interest” in all its transactions and provides all available modern banking services to its clients and want to contribute in both moral and material development of human being. No sustainable material well being is possible without spiritual development of mankind. Only material well-being should not be the objective of development. Socio-economic justice and brotherhood can be implemented better in a God-fearing society.

Other objectives of Shahjalal Islami Bank includes:

  • To establish interest-free and welfare oriented banking system.
  • To help in poverty alleviation and employment generations.
  • To contribute in sustainable economic growth.

 Roles in Economic developement

 Business roles of  Shahjalal Islami Bank Limited:

  • Achieve business vision through quality and customer acceptance by providing financial services.
  • Maintain highest ethical standards in every aspect.
  • Customer focus – a perspective of quality throughout:
  • The entire organization or each department and bank.
  • All processes, systems and services.
  • Compliance – with regulatory requirements.
  • Added valuethrough continuous improvements to benefit customers and the bank.

 Roles to the customers

Although, Shahjalal Islami Bank Limited is new in the Banking industry, it tries its best to satisfy its customer through developing the efficiency of its function and to reach its ultimate goal of: Winning client Satisfaction. Customer can enjoy withdrawal, transfer and pay utility bills from anywhere in Bangladesh from any of the thirteen branches. More over the bank has started PC banking facility to reduce the time to deliver the service to its customer. Moreover, it charges competitive rate of service to its customers.

 Roles to the community

Shahjalal Islami Bank Limited performs its roles for the community through:

  • Contributing to higher education (Education Credit scheme).
  • Promoting local industry.
  • Overall development activities through different kind of scheme.


Shahjalal Islami Bank Limited does not believe in the traditional banking, it still believes Islamic System Base 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 output 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; if they are not, the inputs are changed in order to get the desired result.

 Roles towards ethics and society

Shahjalal Islami Bank Limited strongly believes in banking ethics and social responsibilities. Although it is a profit making organization by Mudaraba way, it tries not to harm the society in any of its activities. It is fully devoted to fulfilling the satisfaction of the customer as well as it employees. It performs its social responsibilities through involving in different type of social development activities to develop the socio-economy of the country.

Divisions of SJIBL

The Head Office of Shahjalal Islami Bank has nine major divisions and each comprising of various departments. The major divisions in the Head Office are as follows:

Investment Division

This division has the authority to determine the party or the client who will get the credit facility from the bank. The credit clients are selected according to the criteria of credit policy. This division has the fu]l authority to take any decision against or favor the client and these divisional works is supported by the Credit Services Division.

Financial Administration Division

This division can handle the credit proposal, disbursement, monitoring and credit recovery position that is given by all branches. Each branch has their own credit division and all branch-wise activities are reported to the head office credit services division.

Audit & Inspection Division, H.O

This division can control all the financial position, activities of overall organization. They provide the total budgetary limitation to every department for the respective year. They also carry out the financing activities with the access and operational activities.

Marketing & Public Relation Division 

This division mainly works for

  • To improve the marketing network through out the country
  • To implement the marketing strategies and the concept of Trade Marketing
  • To improve the procedure which is ultimately provide date regarding to competition and relative market.
  • To arrange several workshop and seminar which can improve the quality of existing officers.

  Common Services Division

This division can handle all the general activities except the credit and financial sector. All the administration activities are designed and implemented by this division.

Human Resource Division (Hrd)

This division deals with the employees as the core resources of the organization. They mainly emphasize on the recruitment of employees and the employee benefits & services. And, the main philosophy is to motivate the employee to work with efficiently and effectively.

Computer It Division (IT)

This division can handle the IT activities. Each branch has their own IT division and all branch-wise activities are reported to the head office IT division.


Shahjalal Islami Bank Limited has a predominately network of its twenty one branches, which are tightly bound with each other are displayed below.


Branch Network

The Dhaka Main Branch of Shahjalal Islami Bank Ltd. has been in operations since May 10, 2001. Its is in the first floor of the building which holds the Head Office of SJIBL and remains to be the centerfold of SJIBL’s overall branch activities. SJIBL has a total of 21 branches operating all over the country. Like other Banks, SJIBL has not categorized its branches. The branches had been provided with authorized dealer licensees to handle import, export, and all types of foreign exchanges. The overall branch activities of SJIBL can be primarily divided into four different divisions.

These are:

  • General Banking Department
  • Accounts Department
  • Credit Department
  • Foreign Trade Department

Present programs of the Organization

Shahjalal Islami Bank Gives special importance on savings. The objectives and principles of the savings policy are:

  •  To encourage people to save for self and for the country as a whole.
  • To develop a sustained savings habit among the people.
  •  To mobilize deposits through the operation of the following accounts :
  1. Mudaraba Savings Account
  2. Mudaraba Term Deposit Receipt
  3. Mudaraba Special Notice Account
  4. Mudaraba Special Savings (Pension) Scheme
  5. Mudaraba Hajj Saving Scheme
  6. Mudaraba Savings Bond Scheme
  7. Mudaraba Foreign Currency Deposit (Savings) Scheme
  8. Mudaraba Monthly Profit Deposit Scheme
  •  To operate Current Account on Alwadia principle and all other deposit accounts on Mudaraba principle of Islamic Shariah.
  • The bank distributes minimum 65% of its investment income, earned through deployment of Mudaraba deposits, among the Mudaraba Depositors.

Investments modes:

To provide interest-free Banking Shahjalal Islami Bank Limited has adopt the following modes of investment

  1.  Musharaka (equity participation on the basis of sharing profit and loss)
  2.  Mudaraba (sharing of profit and loss in business where one of the partners provides    expertise and management and other partner provides capital remaining inactive)
  3.  Murabaha (buying and selling of commodities goods etc. with profit)
  4.  Bai-Muajjal (credit sale with profit)
  5.  Ijara (leasing for rent)
  6.  Hire purchase or Shirkatul Melk
  7.  Bi-Salam (purchasing of agricultural products while in production and providing    advance money to the producers)
  8.  Istisna (purchasing of industrial products while in production and providing advance    money to the producers)
  9.  Quard

Computer services:

Shahjalal Islami Bank Limited introduced a few schemes, which are very popular:

  •  Online services
  •  Automated Accounting
  •  Integrated System
  •  Signature Verification
  •  Any Branch Banking

Future programs of the Organization

Shahjalal Islami Bank Limited is computerized and provides the following services some of these services will be introduced soon.

1. ATM Services (to be implemented)

2. POS. Services (to be implemented)

Information Technology of SJUBL

Now days the financial services industry, especially the banking sector is undergoing revolutionary changes with the advent of modern technology and introduction of new products based on the electronic system, the concept of conventional as well as Islamic banking have been changed.

In Bangladesh, although the banking industry are lacking a total integrated banking software solution of international standard, however, Shahjalal Islami Bank Limited put its best efforts to introduce a computerized banking system which provides efficient, reliable, fast service and accurate information to its customer as well as management, shareholders and regulatory bodies.

Banking Operation

All branches of the Bank including the Head Office have a PC Based Local Area Network   (LAN) on   UNIX   platform, which   are   a multi-user and most reliable and internationally recognized secured Operating System. Our banking program supports all core banking facilities including: Al-Wadiah Current Accounts, Mudaraba Savings Accounts, Foreign Currency Accounts, term and Fixed Deposits, BCD, Loans and Advances, Special Schemes for

Deposits and Advances etc. Besides the maintenance of various types of customer account, calculation and applications of interests, automatic deduction of various types of taxes on lives, the bank’s books of accounts are also fully automated and integrated in to the banking software thus the Balance Sheet, Statement of Affairs and other management reports and generated by the computer system under Bank’s Standard Chart of Accounts on daily basis.

Pc Bank

The amazing and dazzling touch of the fastest banking practice of Shahjalal Islami Bank Limited is outcome of exciting banking software where I relished the expertise. PC Bank opened up the door of new horizon for the smarter, better and faster banking. The arenas covered by the PC BANK are as follows:

ACD:   Alwadia Current Deposit

MSD:    Mudaraba Saving Deposit

SND: Short-Term Notice Deposit

MDS: Mudaraba Deposit Scheme

MTDR: Mudaraba Term Deposit Receipt

Present programs of SJIBL

Present programs of Shahjalal Islami bank Limited are:

  1. 1.  Alwadia Current Account
  2. Mudaraba Savings Account
  3. Mudaraba Term Deposit Receipt
  4. Mudaraba Special Notice Account
  5. Mudaraba Hajj Saving Scheme
  6. Mudaraba Savings Bond Scheme
  7. Mudaraba Monthly Profit Deposit Scheme
  8. Mudaraba Muhor Savings Deposit Scheme

Rules for opening

The deposit is accepted in the AWCA under Alwadia principle of Islamic Shariah. The deposited money is invested along with other deposits by the Bank according to Islamic Shariah.  Here, the customer does not have any share in the profit.  The transaction can be made more than once during the banking hour.

The account can only be opened with the introduction of any acceptable client/ current account holder of the Bank. In order to open Alwadia Current Account, a minimum amount of Tk. 500/= is to be deposited and   the minimum balance with minimum amount of Govt. tax is

to be maintained in the account. The Bank reserves the authority to return cheque, if otherwise.

Withdrawal may be made through the cheques supplied by the Bank. In that case all articles of Negotiable Instrument Act are applied.

Incidental charge @ Tk.50.00 half yearly basis is deducted from the account where minimum balance is not maintained. Closing charge @Tk.50.00 will be realised while closing the account.

For the first cheque book, the customer has to apply   in a specified form (F-6) and then for new cheque book the customer shall have to apply through the requisition slip supplied with the previous cheque book.

The customer has to count the pages of the cheque book at the time of receiving the same. The book   should be maintained safely so that no cheque may be misused or stolen or destroyed. The Bank will not be responsible for any forgery if occurred by the stolen cheque(s).

The account holder shall have to use the specimen signature put in the Bank while withdraw money and in case of other correspondence with the Bank. In order to change the specimen signature put earlier the operator shall have to apply in writing before well in tim

 The bank usually allots separate A/c. Nos. to different A/c. holders. The depositors have to mention name and No. of the account while fill-up the deposit slips for depositing the cash/cheque and obtain receipt duly signed by the authorised bank officials. The cheque to be deposited should be marked ‘Crossed’ i.e. A/c. Payee/ & co. etc. in the proper place of the cheque. If the deposited cheque(s) etc. is/are returned unpaid to the bank, charge/commission will be realised as per norms.

The Bank records the instruction of ‘Stop Payment` with care. But the Bank will not be held responsible if any fraudulent withdrawal is/are made through stopped cheque(s).

The Bank supplies statement of account every month.

The bank has right to deduct any account to realise necessary expenditure/postal charge. Moreover, any tax imposed by the Govt. will be deducted from the account.

The Bank preserves the right to close the account without showing any cause.

The changed address (if applicable) should be informed to the Branch immediately. The bank makes correspondence with the customer through postal services. The Bank will not be held responsible if any letter (cheque/Bill) is not delivered in time or not delivered at all.

In case of joint account, if any of the A/c. holders expired the operation in the account will be stopped just after getting report and balance in that account will be paid as per norms to the heirs of the deceased and the alive A/c. holder(s); if there is any outstanding investment liabilities, the alive account holder/heirs of the deceased is/are bound to adjust the same.

The Bank consciously sums up the credit/debit of the account. If any amount is credited/debited through mistake, Bank can re-write the balance.

The unused cheque(s)   must be returned   to the Bank at the time of closing of the account.

The account holder(s) can select nominee’s) to receive the balance of the account in case of death of the account holder.

In case of death of the account holder, the nominee’s) has to submit the following papers/documents in support of his/their nomination to receive the balance of the concerned account:Death Certificate regarding death of the account holder.

  1. Certificate from 2 (two) valued clients of the Bank or 2 (two) officers of the Bank or the Chairman/Ward Commissioner of the Union Parishad/Municipality in support of the identification of the nominee’s).
  2. Attested Passport size photographs of the nominee’s).
  3. Indemnity Bond (C.F.-12) duly executed by the nominee’s) under sureties of 2 (two) valued clients each good for the amount and acceptable to the Bank.

The Bank reserves the authority to change, develop or reform/modify the rules of the account any time and the client is bound to abide by the same.

Individual savings purposes open this type of account. Savings bank account also requires proper introduction. Deposits are made through deposit slips and withdrawals are made through printed cheques supplied while opening the account. No new account can be opened with cheque only but there must be some initial cash deposits. As per existing rules, a depositor can withdraw from his SB account not more than twice in a week to an amount not exceeding 25% of the balance in the account, subject to a maximum Tk. 10,000 per week. This type of account earns profit on weighted rate. Profit on SB account is calculated on minimum monthly balance and the profit so earn is credited to the account half yearly in June and December each year. If cash withdrawals are made violating the aforesaid prescribed limit, no profit is to be paid on such account for that month in which the default takes place. These SB account rules are subject to changes from time to live. Statement of account is to be dispatched to the account holder on quarterly basis or the customer may request for.

Such type of deposit is repayable after the expiry of a predetermined period fixed by the customer himself. The period varies from 3 months to 36 months. As usual, the prospective fixed deposit holder is expected to fill up an application form which contains the rules and regulations of the deposit .A banker does not insist upon a letter of introduction or reference for opening a fixed deposit account.

At least Tk. 25,000/- is required to open such type of account. Profit on Mudaraba. Special notice deposit shall be credited to the account half yearly in June and December .No profit is to be charged if the balance stands less than Tk. 25,000. Individuals are permitted to deposit money in every working day. Withdrawals from this type of account require a prior notice of 7 days. It is also noted that SJIBL are promised to invest this deposited money according to the Islami shariah.

Hajj is one of the fundamental worship (Ibadah) of Islam. However, because of the prevailing socio-economic situation in the country, the people interested to perform Hajj cannot arrange the required amount of money at a time to perform Hajj. The desire of many to perform Hajj is thus never fulfilled. Over twenty five thousand devoted Muslims from Bangladesh perform holy Hajj every year. Financial solvency and physical fitness are the pre-requisites of performing

Hajj. The majority of the people, however, reach the fag end of their life in arranging the required amount of money for Hajj. Shahjalal Islami Bank Limited has, therefore, introduced “Hajj Savings Scheme” so that persons eager to perform holy Hajj may build-up savings through ‘Mudaraba Hajj Savings Account’.


  1.  Mudaraba Hajj Savings Account can be opened in the name of the individual only.
  2.  Deposits in this account are received on the basis of Mudaraba principle of Islamic Shariah.
  3.  The Bank issues pass-book against this account. After the deposit of each installment, the depositor must ensure that such deposit is recorded in the pass-book. If the pass-book is lost, the Bank shall charge Taka 10/- for issuance of new pass-book.
  4.  The account holder must immediately communicate to the Bank of any change of the address.
  5.  Persons eager to perform Hajj within the period of one to twenty five years may build-up savings to perform Hajj by depositing monthly installment.
  6.  The chart mentioned on the next page indicates the year-wise monthly installments of persons intend to perform Hajj in 2001, 2002 and 2003. The monthly installment shall be applicable on the basis of opening year of the account.
  7.  Profit shall be disbursed over the deposit on the basis of daily balance by giving 1.10 weightage, which is more than that of 3 year term deposit.
  8.  If any depositor intends to perform Hajj before the maturity of deposit, then he can do so by depositing the balance amount fixed for the year alongwith his savings in the Mudaraba Hajj Savings Account.
  • vIf any depositor, for some reasons, is unable to perform Hajj and wants to withdraw the deposited money, he shall get profit over the deposit at the rate of profit applicable for Mudaraba Savings Account.
  •  Mudaraba Hajj Savings Account can be transferred from one Branch to another upon application from the depositor on genuine ground.
  •  Money can not be withdrawn from Mudaraba Hajj Savings Account and as such no cheque-book is issued.
  •  In a year there shall be 12 installments, 60 installments in 5 years and 300 installments in 25 years.
  •  Regular installment shall have to be deposited within first 10 days of the month. Advance deposit of investment is acceptable.

Savings play an important role in capital formation, income-generation and creation of employment opportunities and contribute towards the increase in wealth of the individual and nation through profitable investment.

The people generally try to save a portion of their income with a view to protecting themselves from future financial hardship and also to enhance their earnings for their own benefit and the benefit of their family and the nation as a whole. Bangladeshi wage earners living abroad and the retired service holders desire to invest their earnings and retirement benefits in safe and profitable investment schemes. Many a people, however, cannot deploy their fund in business for various reasons. The people of Bangladesh are deeply religious and committed to Islamic way of life and determined to conduct their economic activities in accordance with the tenets of Islamic Shariah. Naturally they want to avoid interest in transaction and business which is forbidden by Islam.

Islam encourages savings, which is the prerequisite for any sustainable economic development. The saying of Holy Prophet (PBUH) is that poverty leads to unbelief and therefore, people have been encouraged to save a portion of their earnings to protect themselves from future financial setback. Islam emphasizes in the cycling of surplus capital by investing such funds in productive economic activities that will pave the way for employment, development and progress.

The people of Bangladesh reluctantly invest in interest bearing schemes. The religious Muslims, however, avoid such investments and the idle funds are mostly being consumed to meet the avoidable family demands. Thus the major portion of savings remains out of the production process. Islami Bank Bangladesh Limited, has therefore, introduced the savings deposit accounts viz. Mudaraba Savings Account, Mudaraba Term Deposit Account, Mudaraba Hajj Savings Account, Mudaraba Special Notice Account and Mudaraba Special Savings (Pension) Scheme as per Islamic Shariah. Mudarabah Special Savings (Pension) Account has also been introduced recently. Islami Bank Bangladesh Limited, being encouraged by the success of the Mudaraba deposit accounts has, therefore, introduced yet another savings scheme namely “Mudaraba Savings Bond Scheme”.

  • Features:
  •  Mudaraba Savings Bond shall be available in Tk. 1,000, Tk. 5,000, Tk. 10,000, Tk. 25,000, Tk. 50,000, Tk. 1,00,000, Tk. 5,00,000 and Tk. 10,00,000 denominations.
  •  Purchase ceiling of Mudaraba Savings Bond is minimum Tk. 1,000. Any amount of Bonds can be purchased subject to availability.
  •  Person(s) aged 18 years and above shall be eligible to purchase Mudaraba Savings Bond(s) in single name or in joint names.
  1.  Educational Institutions, Clubs, Associations and other non-trading and non-profit Socio-economic Institutions shall also be eligible to purchase Bond(s) in the name of the Institutions.
  2.  Guardian(s) shall be allowed to purchase Bond(s) jointly with a minor mentioning the age of the minor. Payment against such Bond(s) shall be made on the basis of joint signature after the minor attains majority.
  3.  Father/Mother/Legal Guardian shall be eligible to purchase these Bonds on behalf of one or two minors mentioning the name and age of the minor(s) and also instructions regarding payment encashment.
  4.  Photographs shall not be required with application for purchase of the Bonds.
  5.  If original Bonds are lost or damaged due to theft, fire etc. there shall be arrangement for issuance of duplicate Bonds after due verification.

There is a substantial demand of monthly profit paying long term deposit schemes among the retired service holders and wage earners residing abroad who want to help their dependants and relatives by contributing a certain amount of money on monthly basis from the profits of their one-time deposit with the bank. Again there are persons who want to meet the day to day expenses of their families out of the monthly profits that may be received on their long-term deposits. Trusts and Foundations who desire to offer monthly scholarship and stipends to the students from the monthly generated profits of their funds deposited on long term basis with banks and parents who want to bear the educational expenses of children from the monthly profits of their savings are also very much interested for such a monthly profit paying deposit scheme.

Shahjalal Islami Bank Limited, as a pioneer of welfare banking, is receiving demands from the vast majority of our clientele and many other Shariah abiding people for introduction of attractive monthly profit based deposit schemes on the basis of Islamic Shariah so as to encourage them to meet their above needs out of the earnings of their deposits.

Considering the above aspects and prospects Shahjalal Islami Bank limited has launched a new deposit product under the name and style “Mudaraba Monthly Profit Deposit Scheme” in accordance with the principles of Islamic Shariah.


This is a Deposit Scheme based on Shariah Principles where the depositor/investor gets monthly profit out of his/her deposit/investment.

  1.  Mudaraba Monthly Profit Deposit Account may be opened in single name or in joint name and there will be provision for nominating nominee(s).
  2.  The investment of Wage Earners who want to pay a fixed amount monthly to their families/dependants in Bangladesh from the profit of their investment,
  3.  The deposit of those persons who intend to meet the monthly budget of their families from the income out of their deposit,
  4.  Investment of fund of Trusts and Foundations who award monthly scholarship/stipends to students and
  5.  Parents who want to defray the educational expenses of their children from the monthly profit of their deposit with the Bank.
  6.  The Deposit shall be for a period of 5(five) years. The amount is refundable on maturity as per Mudaraba principle.
  7.  Under this Scheme Deposits shall be received on Mudaraba principles in the amounts of Tk.100,000/- and multiples thereof. Specially designed Monthly Mudaraba Profit Deposit Receipt will be issued there-against.
  •  No cheque book shall be issued against this account.
  •  The depositor may nominate one or more persons as his nominee of the account. In case of more than one nominee, he should fix their respective share in the nomination.
  • Mudaraba depositors shall get preference in the matter of investment of their deposits over the Bank Equity and other cost-free funds

The bank declared the following Final Rates of profit for the Year 2005 on varies types of Mudaraba Deposits (Profit rate on Mudaraba Deposits for the last 3 Years are also shown hereunder for your ready reference)

Types of Deposit

Final Profit Rate (%) For





Mudaraba Savings Bond – 8 years





Mudaraba Savings Bond – 5 years





Mudaraba Hajj Savings Deposit





Mudaraba Monthly Profit Deposit


Mudaraba Term Deposit – 36  months





Mudaraba Term Deposit – 24 months





Mudaraba Term Deposit -12 Month





Mudaraba Term Deposit – 6 months





Mudaraba Term Deposit – 3 months





Mudaraba Savings Deposit





Mudaraba Special Notice Account





The total deposit of the Bank stood at Taka 47,732.50 million as on 30.06.2005 as against Tk.  41,641 million as on 31.12.2004. The growth rate in this respect is 30% much above the average growth rate of the banking sector of the country. The Bank has a sound deposit-base as it mainly comprises of small and medium size deposits The Total deposit stands at Taka 41,641 million as on 31st December 2005. Evidently, the deposit of the Bank has increased remarkably over the last eighteen years. By December 31, 2004. No. of different deposit account holders stood at 1,355,053.

Growth of Deposit

                                                                                 Taka in million



Rate Of Increase











































31.10.05 (P)



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