CSR is a crosscutting topic under which numerous issues can be grouped including training and education, capacity building, leadership, health and safety, working conditions, human rights,
stakeholder engagement and corporate governance. Large multi-national companies were the first to identify CSR as a potential tool to improve performance and now through their supply chain they are asking suppliers to comply to their standards. CSR practice in Bangladesh is a new dimension which is the main focus point of this paper. First Security Islami Bank Limited is dedicated itself towards the welfare of the society. Although FSIBL has no formed a strong separated foundation but it does much social-welfare activities. Since then, First Security Islami Bank is carrying the social welfare, education, humanitarian help programs activities and so on, one of the reputed first generation banks in the growing banking sector in Bangladesh. Thus, the title of the study is “An Analysis of Corporate Social Responsibility of First Security Islami Bank Limited”.
Background of the Study
In today’s world academic education is not adequate to enable a student to compete with confidence and reach his/her goal without having experience with the outside world.
As a student of Bachelor of Business Administration (BBA) in Marketing every student has to conduct a practical orientation in any organization for fulfilling the requirements of the three months Internship Program. The main purpose of the program is to expose the students to the real world situation .This study is done as a partial requirement of the internship program for the BBA students. This report is prepared for the internship program consisting of a major in depth study of the CSR of FSIBL.
Practical knowledge is fundamental for the application of theoretical intelligence. Bearing this in mind and internship program was being included in the BBA curriculum. The goal of this analysis is to expose the student in the organizational work situation and also to provide an opportunity for applying classroom learning in practice.
During my internship period I joined FSIBL at Mirpur branch. The title of the report is “An Analysis of Corporate Social Responsibility of First Security Islami Bank Ltd”.
Objective of The Study
The main objective of the study is
To highlight the CSR of First Security Islami Bank Limited in Bangladesh.
Sources of data
Primary and secondary data collected for intern study.
1. Primary Sources
Primary data collected by interviewing employees and staffs of the FSIBL.
2. Secondary sources
Secondary data collected from,
- Relevant books, newspapers, journals on Islamic banking system etc.
- FSBL annual report
- FSIB published documents
- Office circular and bank executives
- Web site- www.fsiblbd.com
Overview of the Organization
Historical Background of FSIBL
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 Bank carries banking activities through its Fifty two (66) branches in the country. 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.
Vision of the Bank
To be the unique modern Islami bank in Bangladesh and to make significant contribution to the national economy and enhance customer’s trust and wealth, quality investment, employee’s value and rapid growth in shareholder’s equity.
Mission of the Bank
The bank has chalked out the following corporate objectives in order to ensure smooth achievement of its goals:
- To be the most caring and customer friendly and service oriented bank.
- To create a technology based most efficient banking environment for its customers.
- To ensure ethics and transparency in all levels.
- To ensure sustainable growth and establish full value of the honorable shareholders and
- Above all, to add effective contribution to the national economy.
Objectives of the Bank
The objectives of the FSIBL are given below:
- To provide efficient computerized banking system.
- To enhance foreign exchange operations.
- To accept deposits on profit-loss sharing basis.
- To establish a welfare-oriented banking system.
- To play a vital role in human development and employment generation.
- To contribute towards balanced growth and development of the country through investment operations particularly in the less developed areas.
- To establish participatory banking instead of banking on debtor-creditor relationship.
Salient Features of FSIBL Bank
The Bank is committed to run all its activities as per Islamic Shariah. FSIBL Bank through its steady progress and continuous success has earned the reputation of being one of the leading Private Sector Banks of the country. The distinguishing features of bank are as follows:
- All activities are conducted on interest-free banking system in accordance with Islamic Shariah.
- Investment is made through different modes permitted under Islamic Shariah.
- Establishment of participatory banking instead of banking on debtor-creditor relationship.
- Investment income of the Bank is shared with the Mudaraba depositors according to a ratio to ensure a reasonable fair rate of return on their depositors.
- Its aims are to introduce a welfare-oriented banking system and also to establish equity and justice in the field of all economic activities.
- It extends Socio-economic and financial services to the poor, helpless and low-income group of the people for their economic enlistment particularly in the rural areas.
- It plays a vital role in human resource development and employment generation particularly for the unemployment youths.
- Its aim is to achieve balanced growth and equitable development of the country through diversified investment operations particularly in the priority sectors and in the less developed areas.
- It extends co-operation to the poor, the helpless and the low-income group for their economic development.
Products and Services of FSIBL:
Investment / Deployment of Funds:
• Bai-Murabaha (Deferred Lump Sum/ Installment Sale)
• Bai-Muajjal (Deferred Installment / Lump Sum Sale)
• Ijara (Leasing)
• Musharaka (Joint-Venture Profit-Sharing)
• Mudaraba (Trustee Profit-Sharing)
• Bai-Salam (Advance Sale and Purchase)
• Direct Investments
• Post Import Investment
• Purchase and Negotiation of Export Bills
• Inland Bills Purchased
• Murabaha Import Bills
• Bai-Muajjal Import Bills
• Pre Shipment Investment
• Quard-ul-Hasan (Benevolent Investment)
Letter of Guarantee
• Tender Guarantee
• Performance Guarantee
• Guarantee for Sub-Contracts
• Shipping guarantee
• Advance Payment guarantee
• Guarantee in lieu of Security Deposits
• Guarantee for exemption of Customs Duties
Letter of Credit (L/C) / Back to Back Letter of Credit (L/C)
• Consumer Investment Scheme,
• SME Investment Scheme,
• Lease Investment Scheme,
• Hire Purchase,
• Earnest Money Investment Scheme,
• Mortgage Investment,
• Employees House Building Scheme,
• ATM, VISA Investment Card, EEF, etc.
DAl-Wadiah Current Deposit.
DMudarabah Savings Deposit.
DMudarabah Short Term Deposit
DMudarabah Term Deposit
We are also emphasize on non-fund business and fee based income. Bid bond/ bid security can be issued at our customer’s request.
Our Bank is posed to extend L/C facilities to its importers / exporters through establishment of correspondent relations and Nostro Accounts with leading banks all over the world.
FSIB have set up Wide Area Network through Radio, Fibre-Optics & other available communication media systems to provide any branch banking to our customers.
Customer of one branch is now able to deposit and withdraw money at any of our branches. All Branches are included in our Wide Area Network.
No TT/DD or cash carrying will be necessary.
- Mobile Banking Agent List
- Mobile Banking Service
- Mobile Banking TV Adds
- Mobile Banking Paper Adds
First Security Islami Bank Ltd. has officially launched SMS banking service from December 17,2007
First Security Islami Bank Ltd. has implemented successfully Automated Teller Machine (ATM ) /DBDIT 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) using Dutch Bangla Bank Ltd. ATM Booth and POS.
Utility Bills Payment
The utility bills received following Branchs
Branch Name Bills Types
Mohakhali, Dhaka …………………………………….DESCO
Topkhana, Dhak…………………………………..Under process (Electric bill)
Gulshan , Dhaka…………………………………………………Titas Gas
Bangshal , Dhaka………………………………………………… Electricity Bill, Titas Gas, Wasa Bill, Telephone Bill Gazipur………………………………………………… Dhaka Pally Biddut Shumitty
Keranihat, Chittagong……………………………………………………Pally Biddut Shumitty
Biswanath , Sylhet…………………………………………………………..Pally Biddut Shumitty
For safekeeping of customer’s valuables like important documents and goods like jewelries and gold ornaments, FSIB Locker Service is available in most of the Branches in urban areas.
|Nature of Service||Custody of Locker / Safe|
|Nature of Charges||Rent|
Locker Available Branches
|Dhaka Division||Chittagong Division|
|Khulna Division||Sylhet Division|
Schedule of Bank Charges/Commission in respect of Inland/ Online Transaction:
|Sl.||Types of Service||Nature ofCharges||Rate of Charges/Commission|
|Current Account / STD Account||Maintenance|
Tk.500.00 (Half yearly)
|Tk.300.00 (if average Deposit balance above|
Tk.25,000/- (Half yearly).
Tk.100.00 (if average Deposit balance Tk.25,000/-) Tk. Nil (if Average Deposit balance Tk.5,000/-).
|Cheque Book Issue||Charges||10 pages Tk.25.00|
|25 pages Tk.50.00|
|50 pages Tk.100.00|
|Collection (Local)||Conveyance at actual|
|a. Collection of|
Minimum Tk.50/- per instance
|b. Collection of outstation cheques/bills (clean/documentary)||i) Upto Tk.25,000/- @0.20% Min. Tk.50/-|
|ii) Above Tk.25,000/- but not exceeding Tk.1.00 lac|
|iii) Above Tk.1.00/- Lac but not exceeding Tk.5.00|
lac @0.15% Min.Tk.200/-
|iv) Over Tk.5.00 lac @0.10% Min. Tk.1,000/- Max. Tk.2,000/-|
|c. Cheque returned unpaid from Clearing house|| |
|d. Bounced Cheque drawn on us (Cash|
Clearing or Transfer)
|Charge||Inward : Tk.100.00|
|Outward : Tk.100.00|
|e. Postage (Regd.)||Charge||At Actual Minimum Tk.50.00|
|f. Fax||Charge||Tk.50.00 (per page)|
|g. Telephone||Charge||Tk.50.00 (Per Minute)|
|a. DD/TT issued||Commission||Commission 0.15%|
Telegram : At actual min Tk.50.00
Telex : At actual min Tk.50.00
|b. Cancellation of|
|c. Issuance of|
|d. Pay Order Issue||Commission||a) Upto Tk.1,000.00 Tk.15.00|
|b) Above Tk.1,000.00 but not exceeding Tk.1.00 lac|
|c) Above Tk.1.00 Lac but not exceeding Tk.5.00 Lac|
|d) Above Tk.5.00 Tk.100.00|
|Inland Bills Purchased|
|Commission||Upto Tk.1.00 lac @1.25% min. Tk.250.00|
Upto Tk.5.00 lac @1% min. Tk.1500.00
|Postage Charges||At actual min. Tk.15.00|
|e-mail/SMS Charges||At actual min. Tk.40.00|
|Fax Charges||Tk.25.00 per minute Min. Tk.40.00|
|At actual min. Tk.50.00|
|Charges of Parcel||Commission||Tk.40.00 for each parcel for first 10 days &|
additional Tk.10.00 for every subsequent 10 days or part thereof.
|a. Client’s Godown under Bank’s Custody||Clients Godown under Bank’s|
On Clients A/C
|i) Rent||On Clients A/C|
|ii) Insurance||On Clients A/C|
|iii) Salary & Allowances of|
On Clients A/C
|b. Bank’s rented|
|i) Rent||Actual rate for floor space occupied plus proportionate maintenance cost.|
|ii) Insurance||To be realized from the clients proportionately|
|iii) Salary & Allowances of Godown staff|| |
|Security money for key of each locker|| |
|12||Transfer of A/C from one branch to another|| |
|13||A/C Statement/Balance Confirmation Certificate||Per year||Nil – Two Times (per year)|
|Tk. 200 per instance – in addition to over two times|
|Certificate for BO||Tk. 100 per instance|
|14||Re-Schedule Charges||Chargesemail@example.com% Min. Tk.1,000/-|
|15 Online Charges:|
|a) Cash withdrawal limit Tk.5,00,000.00 (Five Lac)|
|b) Deposit/ Transfer amount -Unlimited|
|c) Officials of FSBL may be allowed to avail of the online banking facilities free of charges up to the limit of his/her monthly gross salary, subject to prior approval to branch Manager|
|d) Online transaction will be closed at 3.00 pm and after 3.00 pm if any party seeks transfer/deposit/withdrawal any fund then T.T. cost will be applicable.|
|Note: VAT & other Govt. Levies are applicable asper Govt. Laws.|
This bank is one of the most disciplined Banks with a distinctive corporate. Here we believe in shared meaning, shared understanding and shared sense making. Bank’s 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 needs of the customers who are of paramount importance to the bank. The people in the Bank see themselves as a tight knit them that believe in working together for growth. The corporate culture of bank belong has not been imposed; it has rather been achieved through banks corporate conduct.
Human Resources Development
FSIB has a separate Human Resources Division (HRD) to manage the employee policies and practices. As on FYE 2007, Total 421 executives & officers of the bank have been working for smooth banking operations. Bank follows a standardized human resources policy. HRD of the Bank follow a transparent and free & fair system to ensure the standard recruitment, training & development of human resources of the bank. The bank has defined HR policies including recruitment, training & development, promotion, leave, transfer and disciplinary action policy. Usually internal recruitment procedures are considered to fill up the mid and top management positions, while entry-level positions are filled with regularly through competitive recruitment exams. They follow transparent, well-defined and strict rules for appointment of officers and staff in the Bank’s service.
Corporate governance is about how corporation is running its operations to achieve its corporate objectives. Bangladesh Bank (BB) gives emphasis on implementing corporate governance among the financial institutions and to do that, BB emphasis implementation of the guidelines issued by them for improving corporate governance in banking. Good Corporate Governance practices enhance an entity’s corporate image and market credibility, which attract capital and increase its borrowing power. These can be reflected in the quality of financial reporting and disclosures; strength of internal control system and internal audit function induction of professionally competent, independent non-executive Directors on corporate Board; formation of Audit Committee; delegation of authority to executives and staff; protection of corporate governance for strengthening organizational strength. With a view to ensure effective participation and deep interest in the affairs of the company and as per Articles of Association of the Company and as per Bangladesh Bank Circular No. 16 dated March 24, 2003 the bank has set up the following 2 committee:
- Executive committee
- Audit Committee
FSIB has constituted 09 members executive committee of the board as per Bangladesh Bank guidelines to ensure corporate governance in the business of which managing director of the Bank is Ex-officio Member. The executive committee of the board are responsible for developing policy and strategy for smooth operations of business and business development of the bank to ensure maximization of shareholders wealth protecting other stakeholders interest in the company Mr. Alhaj Md. Saiful Alam, Chairman of the board of Directors is the Chairman of the present Executive Committee of the bank. He is very dynamic person and leading the executive committee of the bank in a very manner.
FSIB has formulated an audit committee can play an effective role in formulating an efficient and secured banking system. The Audit Committee has been formed comprising three members of the Board of Directors. As per corporate governance guidelines the Chairman of the Audit Committee should have sound knowledge and expertise in finance & accounting or auditing. Mr. Hamidul Haq, who is also a Director of the Bank, is Convener of the committee. He is associated in banking field over long years.
SWOT Analysis of FSIBL
SWOT analysis means strength, weakness, opportunity and threat analysis of company. Here SWOT analysis of FSIBL bank are given below-
- First strength is that it is a sharia 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 asset quality.
- Experienced management.
- 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. Close monitoring on investment.
- High attention on individual performance.
- High attention on making quality investment and disposal of proposals.
- All the officials are dedicated and honest to serve its 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.
- Traditional network system and lack of full scale automation.
- Lack of required ideas in modern investment products.
- Poor marketing of investment products.
- Lack of required information specifically on SME.
- No growth on carrier advancement. So the employee wants to switch elsewhere.
- Lack of experienced, competent as well as proficient manpower in almost every department.
- 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.
- They have no such program to finance to the new entrepreneur or creating the same.
- 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.
- Because of the intense competition, most of the competitor banks of FSIBL Bank Ltd. are coming up with new service line ATM.
- 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.
CSR of First Security Islami Bank Ltd.
Scholarship for Poor and autistics
Recently First Security Islami Bank has provided scholarship to the poor and autistics. The governor of Bangladesh Bank Dr. Salehuddin Ahmed was the chief guest of this program. The Bank wants to continue this scholarship every year so that this poor students can continue their study.
Computer for School
FSIBL has provided some computer in different school and colleges. At first they start this program at Potya Model public school and college.
- Donation to Sonatola Pilot High School, Barnamala Adarsha School, DU Management Dept. etc.
- Scholarship/lump grant for poor and Meritorious Students
- Financial support to Educational Institutions
Relief and Rehabilitation Program
Participation in relief and rehabilitation activities in natural disasters and in emergency forms an important programme of First Security Islami Bank Foundation. During calamities like flood, tornado, tidal surge etc. The Foundation mobilities its own people as well as donates to the relief fund opened at the government level. The Foundation also tries its best to extend hands of assistance and co-operation to the Muslim brethren elsewhere in the world.
As a part of Corporate Social Responsibility Program, First Security Islami Bank Limited donated Tk. 30,00,000/- to the Prime Minister’s Relief & Welfare Fund as donation for Nimtoli and Begunbari tragedy victims. Mr. Md. Abdul Maleque, Vice Chairman, First Security Islami Bank Limited is handing over the payment order to Honorable Prime Minister Sheikh Hasina in a simple ceremony. It may be noted that FSIBL always extended their assistance for the distressed community in various natural calamity.
Donation for orphanage and Madrasha
FSIBL has donated 5 lack taka for opening new orphanage for the orphan madrasha. They have also donated for seed trust and 240000 taka for Anjuman mofidul islam.
First Security Islami Bank Limited with the assistance of Bankers Forum organized an eye camp for the orphans of Dhaka City. In this connection a simple ceremony was organized at the Bank’s Head Office few day. Mr. A.A.M. Zakaria, Managing Director was present on the occasion.
FSIBL donated Ambulance
As a part of Corporate Social Responsibility, First Security Islami Bank Limited has donated an ambulance to Baitus Sharaf Shah Jabberia Hospital. Mr. Zahangir Gafur, Zonal Head of FSIBL hand over the ambulance to Mawlana Sheikh Md. Kutubuddin
Humanitarian help programs
These hese programmed aims at providing help to distressed people who are unable to meet their basic needs like food, clothing, shelter and medicine. The old widow and children without guardians get preference. Besides, the programmed extends assistance to orphanages, provide fund for the marriage of poor girls, assist indebted people, help distressed wayfarers etc.
Liberation war museum
As a part of Corporate Social Responsibility Program, First Security Islami Bank Limited donated Tk. 50,00,000/- for construction of permanent Liberation War Museum. Photograph shows Alhaj Md. Saiful Alam, Chairman, First Security Islami Bank Limited is handing over the payment order to Honorable Prime Minister Sheikh Hasina in a simple ceremony. It may be noted that FSIBL always extended their assistance for the promotion of heritage, culture, education and welfare of distressed community in various natural calamity.
Assistance for Cyclone Aila and Cidr Victim
To mitigate the sufferings of Aila victims, First Security Islami Bank Limited has donated Tk. 10,00,000/- only to Prime Minister’s Relief Fund. Mr. AAM Zakaria, Managing Director, First Security Islami Bank Limited handed over a cheque amounting Tk. 10,00,000/- to Prime Minister Sheikh Hasina.
To mitigate the sufferings of Cyclone Sidr victims, First Security Islami Bank Limited has donated Tk. 15,00,000/- only to Prime Minister’s Relief Fund.
Assistance for family members of the martyred Army Officers killed in BDR carnage
As a part of Corporate Social Responsibility, First Security Islami Bank Limited has donated Tk. 25,00,000/- only to Prime Minister’s Relief Fund as financial assistance to the bereaved family members of the martyred Army Officers killed in BDR carnage. Alhaj Mohammad Saiful Alam, Chairman, First Security Islami Bank Limited handed over a cheque amounting Tk. 25,00,000/- to Prime Minister Sheikh Hasina on June 10, 2009.
First Security Islami Bank Limited has also donated Tk. 4,80,000/- only to Prime Minister’s Relief Fund as financial assistance to the bereaved family members of the martyred Army Officers killed in BDR carnage. Mr. A.A.M. Zakaria, Managing Director, First Security Islami Bank Limited handed over a cheque amounting Tk. 4,80,000/- to Prime Minister Sheikh Hasina
1. First security Islami Bank has no activity for rural development.
2. FSIBL are not so aware about green banking.
3. No activity for income generating people.
4. They don’t arrange any tree plantation programme
5. They don’t have so much activities on the maintenance of public roads.
6. They don’t have activities on the agriculture.
7. Lack of advertising.
In the Bangladesh society, a few organizations are contributing through their activities on Corporate Social Responsibility (CSR). First Security Islami Bank Limited is dedicated itself towards the welfare of the society. Although the Bank has no formed a strong separated foundation but it does much social-welfare activities. Since then, the Bank is carrying the social welfare, education, humanitarian help programs, and so on.
During various natural disasters, FSIBL came forward with activities for the victims directly and through donating into their. Recommendations will help the bank to improve the service quality in upcoming days.
1. The bank should develop their rural development scheme.
2.They should develop their advertising.
3. They should develop Health and Medicare programs.
4. They should concern about green banking.
5.They should progress and maintenance of public road.