Mission of SJIBL
Shahjalal Islami Bank Ltd. aims to become one of the leading Banks in Bangladesh by prudence, flair and quality of operations in their banking sector. The bank has some mission to achieve the organizational goals. Some of them are as follows as:
To be the unique modern Islamic bank in Bangladesh & to make significant contribution to the national economy and enhance customers’ trust & wealth, quality investment, employees’ value and rapid growth in shareholders’ equity.
Shahjalal Islami Bank Limited was rated by Credit Rating and Information Services Limited (CRISL). In their report on April 2010, they rated the Bank as AA for long term and ST-2 for short term. The gradation in long term rating has been done in consideration of its good capital adequacy, appropriate asset quality, increased non funded business and sound liquidity position. The short term rating indicates high certainty with regard to the obligators capacity to meet its financial commitments.
Objectives of SJIBL
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 wants 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 well in a God-fearing society.
The objectives of Shahjalal Islami Bank include:
Goals of SJIBL
Shahjalal Islami Bank Ltd. will be the absolute market leader in the number of loans given to small and medium sized enterprises throughout Bangladesh. It will be a world-class organization in terms of service quality and establishing relationships that help its customers to develop and grow successfully. It will be the Bank of choice both for its employees and its customers, the model bank in this part of the world.
Strategies of SJIBL
The strategies of Shahjalal Islami Bank include:
Performance of Shahjalal Islami Bank Limited
Background Performance of the Shahjalal Islami Bank Limited
Shahjalal Islami Bank Limited, a Shariah Based Commercial Bank in Bangladesh was incorporated as a Public limited company on 1st April, 2001 under Companies Act 1994. The bank commenced commercial operation on 10th May, 2001 by opening its 1st branch, i.e. Dhaka Main Branch at 58, Dilkusha, Dhaka obtaining the license from Bangladesh Bank, the Central Bank of Bangladesh. Its corporate head office is situated at 10, Dilkusha commercial Area, Jibon Bima Bhaban, Dhaka-1000, and Bangladesh. The bank opened 2(two) branches in 2001, 6(six) branches in 2002, 2(two) branches in 2003, 2(two) branches in 2004, 4(four) branches in 2005, 5(five) branches in 2006, 5(five) branches in 2007, 5(five) branches in 2008 & 20(Twenty) branches in 2009. Total number of branches stood at 64 in 2010 and some more branches are likely to be opened in important business locations of the country during 2011-2012 subject to the approval of Bangladesh Bank.
Net asset value per share:
Net asset value per share has increased by 19.70 in 2010 from 17.98 in 2009. It was 14.90 in 2007. It gives a clear picture of its strong operational performance.
Earning Per Share:
Another indicator of better performance is Earning per Share. In 2010, SJIBL has achieved a tremendous growth of Earning Per Share which was 6.05. But in previous year it was only 3.91.
Return On Asset:
In 2010, Return on asset has increased to 3.01% which was 2.08% in 2009. It indicates high profitability of Shahjalal Islami Bank Limited.
Net Income Ratio:
Net income ratio has reached to 21.79 in 2010 from 15.04 in 2009.this growth proved that SJIBL is going to right direction to achieve its goals.
Economic Value Addition:
Economic Value Addition indicates the true economic profit of the company. In 2010, the amount of EVA is 1854.54 million taka. It was only 715.46 million taka in 2009.
Deposit is the “life- blood” of a bank. Bank has given utmost importance in mobilization of deposit introducing a few popular and innovative schemes. The mobilized deposits were ploughed back in economic activities through profitable and safe investments:
Banking Operation in Computer
Automation in Banking Operation
Shahjalal Islami Bank is an Industry standard, Islamic Shariah & latest technology based modern bank. The bank is equipped with state-of-the-art technology and committed to provide technology based modern banking solutions to its valued customers.
To provide better services to the valued customers using the latest technology and electronic media competing with other private banks to set and establish full automated, on-line, centralized banking systems interfacing (connecting software) with all delivery channels. Like: ATMs (Automated Teller Machine), POS (point of sale-Fund transfer machine for purchasing at any shop/service center etc.) Any branch banking, home banking, tele banking, Internet banking etc. online banking/ any branch banking is a system where transactions, query and system where transactions, query and statements of any client of a certain branch may be carried out from another branch of the bank.
SJIBL Visa Card
Card is considered as a new dimension of product resulting from technological development in the banking arena. In line with our affiliation with VISA International for VISA ATMs and POS, the following two products are launched broadening service products of the bank to the clients:
SMS/ Pull Push Service
Benefit of SMS-
Personnel Management Information Systems (PMIS)
In Head Office PHIS system is going to be implemented in full phase with the following features-
Employees’ recruitment, posting, personal, leave, increment, promotion, training, retirement, attendance, payroll, PF, Tax etc should be controlled by PMIS. This system should be run in LAN & WAN environment and centrally controlled data of all employees. Employees ID, Biometric Image with signature will remain be enrolled in the software.
Shahjalal Islami Bank Limited is a member of the society for Worldwide Inter Bank Financial Telecommunication (in abbreviation S.W.I.F.T). SWIFT is the industry-owned co-operative supplying secure, standardised messaging services and interface software to nearly 8,100 financial institutions in 207 countries and territories. SWIFT members include banks, broker-dealers and investment managers. The broader SWIFT community also encompasses corporate as well as market infrastructures in payments, securities, treasury and trade.
The bank has also established liaison with the facility of REUTERS, through which the bank received regular, latest information about the exchange rate, etc and other price sensitive information to take prompt and correct decision.
Relationship between customer & banker
Banker & Coustomer Relationship
The Banker Customer relationship is essentially a debtor-creditor contractual relationship. This relationship may be divided into two categories.
After the contractual relationship is established between the banker and customer, they have to avoid by some implied conditions of the contract as well as practices of the bank.
Right & Duty of Customer & Banker Relationship
|Rights of a customer||Duties & Obligation of a Banker|
|Right to deposit money in his A/C on time.||Must credit the deposited the amount to the customer’s A/C.|
|Right to demand repayment by issuing cheque or written order properly in proper time and place.||Must honor cheque if otherwise in order.|
|Right to get pass book/statement of A/C.||Must supply pass book/statement of A/C as demanded?|
|Right to stop payment on his cheque.||Must abide by the stop payment order.|
|Right to give standing instructions.||Must abide by the instructions.|
|Right to claim interest of his deposit balance in the interest bearing account.||Must pay/credit interest as per rule.|
|Right to have secrecy of his account.||Must maintain secrecy of customer’s A/C if the banker’s not bound disclose it under certain conditions.|
|Right to claim damages of any loss and for defamation due to wrongful/willful dishonor of cheque by bank.||Must compensate the loss.|
|Right to demand the proceeds of the instrument deposited for collection and collected accordingly.||Must collect the proceeds of the instruments in customer’s A/C and honor the cheque drawn against the amount.|
|Right to claim money paid by bank from his A/C wrongly or payment is not made in due courses.||Payment should be made in due courses in good faith and without negligence.|
|Right to return deposit if not n proper manner and time.||Must deposit the amount properly and in time.|
|Right to return the cheque if not drawn properly or in time or for some other reason.||Must demand payment by issuing cheque or written order properly.|
|Right to debit customer’s A/C for any charges, interest and commission if recoverable.||Must pay the bank charges, interest and commission of payable.|
|Right to lien, right of set off etc.||Must abide by the law.|
Termination of Banker’s & Customer’s Relationship
The legal relation between banker and customer may be terminated with a notice given by both of them with a view to close the account. Besides, there are some reasons for termination of legal relationship. Some of these are stated below: –
The commercial bank remittance facilities to it’s customer is to enable them top avoid risk rising out of profit or loss in cash carrying cash money to one place to another or making payment to someone in another places. Bank take this risk remit the fund on behalf of the customer to save them from any keyword happening through the network of their branches and ensure payment to the beneficiary in exchange of a little bit benefit known as commission. There are four mode of remitting money from one place to another.
Online any Branch Banking
We have set up Wide Area Network using Radio, Fiber-Optics & other available communication 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 except Barishal Branch. Our Barishal Branch will be included in our Wide Area Network shortly.
No TT/DD or cash carrying will be necessary.
Online branch banking service is designed to serve its valued clients. Under
By this system, you shall be able to do the following type of transactions.
Online Transaction Membership Fee:
Charges for Online Transaction:
Accounts Opening: General Rules & Procedures in (Shahjalal Islami Bank Limited) SJIBL
Different Types of Account (opening Procedure):
Account opening is the starting point of binding relationship between banker & customer.
The rules and regulations of Bangladesh, usual customs and procedures common to banks in Bangladesh are applicable to govern the conduct of the account of SJIBL.
The process of opening Mudaraba saving & Al-Wadiah Current Account of SJIBL is discussed in below.
Mudaraba Savings Account
The depositor is the Shahib Al- Mal (owner of the fund) and the bank is the Mudarib (organizer /Manager). The bank is authorized to invest the Mudaraba funds at the risk of the Shahib Al-Mal (depositor). Minimum balance that should be deposited in this account is Tk.2000.The account holder can deposit money at any time during the month. The lowest balance of the account within first six days of the month will be considered as the deposit of the month. Maximum 4-times withdrawal in a month is permissible for distribution/calculation of profit. On a single instance, maximum withdrawing should be one fourth of the balance in the account or Tk.25000 whichever is lower; violation of it will bar distribution of profit. Seven days prior notice to be given for withdrawal of any amount exceeding Tk.25000 and in that case profit may be allowed on the balance amount. However, the Account holder needs to maintain the requisite minimum balance throughout the month to receive the profit. Required information & documents which are needed for opening private individual accounts / Single accounts / joint account are-
Al-Wadiah Current Account
This account can be open for Individual/ Joint account, Private firms, Limited companies, Club/Societies/Educational institution etc.
Nature of Account
Al-Wadiah Current Account is one of the deposit accounts in practice in Islamic Banking Deposits are accepted in Al-Wadiah Current Account by the bank in the normal banking traditions, the only difference is SJIBL obtains consent of the depositors by accepting the rules of account opening form to use their funds in amalgamation with other funds of the bank, at bank’s own risk. It is a non-profit/ loss sharing account, guaranteed by the bank for full repayment less bank’s charges if any.
The operation of the Al-Wadiah current Account is primarily guided by the principles of Al-Wadiah which means the banks receives money from the clients for safe custody. It is under obligations to return the money on demand by the customer either through cheque or by any other means as stipulated.
Who can open an Al-Wadiah Current Account
Any individual, Proprietary concern, Partnership concern, Limited Companies etc. can open an Al-wadiah Current account. Charitable Institutions, Provident and other funds of benevolent nature of the local bodies, Autonomous corporations, Associations, Educational institution etc can also open such accounts.
Introduction of account
No account shall be opened without having suitable introduction from a respectable party known to the bank or Al-Wadiah Current Account holder. Mudaraba Deposit Account holder shall not be accepted for Al-Wadiah Current Account except particular cases.
Admittance of signature and manager’s approval
The “Signature admitted” shall be affixed in the account opening form and specimen signature card.
Minimum balance to be maintained in Al-Wadiah Current Deposit is Tk.5000.
Deposits of Al-Wadiah current Deposit Account is accepted as per Al-Wadiah Principles. Clients will not be entitled to receive any profit against the Al-Wadiah Current Deposit Account.
Required information & documents for opening this account are-
Individual/ Joint Account:
Private Firms accounts (Proprietorship):
Limited Companies Account:
Club/Societies/ Educational Institution etc.:
To confirm the genuineness of customer’s identity personal interview should be taken. Bank official may visit or verify the customer’s address and his genuinely. After opening of account thanks letter should be issue both the account holder & introducer under authenticated mail.
Opening and operating the account
After the above formalities are over, the banker opens an account in the name of applicant. Generally the minimum amount to be deposited initially is Taka 5000/= for opening a current account. Then the bank provides the customer with:
Mudaraba Short Notice Deposit/Time Deposit:
Shahjalal Bank also receives term deposit from the clients.The term deposit, of course, altogether different from that of the interest-based banks. Fixed term deposits while received by Islamic Bank as termed as “Term Mudaraba Deposit”. Like this SBL collect “Mudaraba Short-Notice Deposit” or (MSND). It is also a Time Deposit account.
The formalities for opening of this account are similar to those required for Al-Wadeah Current Account. The only difference is that seven- (7) day notice is required for withdrawal of any sum and profit is paid. The rate of profit for this account is 6.5%. If the withdrawal on demand is desired, it may be paid subject to the for-feature of profit for the period of notice or the expired period of notice.
Different types of deposit scheme
The Shahjalal Bank limited containing:
Some of these are described in following-
Mudaraba Term Deposit Receipt (MTDR): It is like a fixed deposit in the conventional banking system but it does not receive or accept interest rather, this account give profit and collect deposits. In this mode Tk1000/- or above can be deposited against client will get non-transferable instrument of equal amount. The depositor will not receive any chequebook for this account. If a customer withdraws his or her money before one month s/he will not get any kind of profit. On the other hand, after the matured if client don’t withdraw his/her money it will be auto renewed with imposed profit for the next days. In case of one year or more than that, if a depositor does not withdraw his capital it will work as a primary deposit for the next year. If a depositor would like to withdraw his profit after six months s/he will get the profit accordance with previous years profit rate. After the announced yearly profit or loss, if bank felt in loss position then the depositor bound to incur the loss. In absence of account holder the selected nominee will get the money. If the accountholder does not mention any nominee, in that case, the inheritance of the depositor will enjoy the profit accordance to inheritance certificate. Any kind of tax or excise duty can be cut down according to government circular.
Profit on MTDR
|a. FDR for 3 months& above but less than 6 month||Below 10(Ten) lack|
10 lack or above but less than 50 lack
50 lack & above
(Subject to prior permission from Head office)
|b. 6 months & above but less than 1 (one) years||Below 10(Ten) lack|
10 lack or above but less than 50 lack
50 lack & above
(Subject to prior permission from Head office)
|c. 1 year & above||Below 10(Ten) lack|
10 lack or above but less than 50 lack
50 lack & above
(Subject to prior permission from Head office)
Monthly Deposit Scheme (MDS): It is like a deposit pension scheme. A depositor can open a MDS account for depositing of Tk500, Tk1000, Tk2000, Tk10000, Tk5000, and Tk25000, Tk.50000/- for 5 years or 8years or 10years. The installment will be paid within first 25 days of the month. If the 25th of month is off day, then the installment will be paid on next working day. The deposit of installment can be paid by cheque. In the case of cheque, clearing date of the cheque will be the actual deposited date.
The depositor can pay installment from his account through prior permanent instruction. In this term, the accountholders(s) are bound to pay Tk.25 for fine charge. If the account is close before the maturity then profit will be calculate according to savings rate. If a depositor fails to pay consecutive four installments then the account will be closed automatically and profit will be calculate as Savings rate. But for first six-month no profit will be calculate. Nominee will enjoy the profit in absence of the accountholder.
|Monthly Installment||Return after|
|TK. 500/-||TK 20,627||TK 37,896||TK 70,849|
|TK. 1,000/-||TK.41,255||TK. 95,791||TK 1,41,697|
|TK 2,000||TK 82,510||TK 1,51,583||TK 2,83,394|
|TK 3,000||TK 1,23,765||TK 2,27,374||TK 4,25,091|
|TK 4,000||TK 1,65,020||TK 3,03,166||TK 5,66,788|
|TK 5,000||TK 2,06,274||TK 3,78,957||TK 7,08,485|
|TK 10,000||TK 4,12,549||TK 7,57,914||TK 1,41,6970|
Monthly Income Scheme (MIS): It is the scheme for profit earning. In this account depositor can deposit minimum amount of 50,000/- and above. Depositor will get 500/- against 50,000/-. But depositors have to deposit the amount for 5 years. If accountholder close his or her account before maturity then s/he will receive the profit accordance with savings rate. In the absence of accountholder, the specified nominee will get the amount.
Double Profit Mudaraba Savings Scheme (DPMSS): In this scheme depositors can deposit more than 10,000/- for 6years and after the maturity accountholder will receive double than his deposited amount. If depositor want to close his account before maturity then he is bound to receive at the savings rate. For opening this account applicant need one copy of recent photograph and one copy photograph of nominee (if any).
Millionaire Scheme (MS15, MS20& MS25): Normally, it is the account for children or inheritance. Here, applicants are the selected people for operating the account on behalf of the accountholder. The depositor should to deposit the account within first 15 days of the month; neither will s/he be designated as debtor to the bank. If 15th date is the off day then the next working day will be schedule date. The installment can be paid through cheque. No chequebook will be issued for this account, but the bank will provide deposit book.
Special Term Deposit Scheme (STDS)
For most of the people on fixed income the opportunity to supplement their monthly earning is a golden one. And SJIBL Special Deposit Scheme gives a customer just that.
Under this scheme, customers can deposit money for a term of 5 years. The deposited money is fully refundable at the expiry of the term. At the same time, during the term period they can enjoy a monthly profit corresponding to their deposited amount. As for instance, under this scheme a deposit of Tk, 55,000/- gives a monthly income of Tk.500/-
|Deposited Amount||Monthly Benefit|
|Tk. 55,000/-||Tk. 500/-|
|Tk. 1,10,000/-||Tk. 1,000/-|
|Tk. 1,65,000/-||Tk. 1,500/-|
|Tk. 2,20,000/-||Tk. 2,000/-|
Accounts closing procedures of (Shahjalal Islami Bank Limited)
Account closing: The relationship between a banker and his customer is contractual one and continues as long as both of them so desire. The relationship may be terminated by either of them by giving notice of his intention to the other party. Moreover, the banker is bound to suspend payment out of the customers account under the compulsions of law. The rights and obligations of a banker in this regard are as follows:
The banker should take the following steps for closing such an account:
Step-1 The banker should give to the customer due notice of his intention to close the account and request him to withdraw the balance standing to his credit. This notice should give sufficient time to the customer to make alternative arrangements.
Step-2 if the customer does not close the account on receipt of the aforesaid notice, the banker should give another notice intimating the exact date by which the account be closed otherwise the banker himself will close the account. During this notice period the banker can safely refuse to accept further credits from the customer and can also refuse to issue fresh cheque book to him. Such steps will not make him liable to the customer and will be in consequence with the intention of the notice to close account by a specified date. The banker should not refuse to honor the cheques issued by customer, so long as his account has a credit balance, which will suffice to pay the cheque. If the banker dishonors any cheque without sufficient reasons, he will be held liable to pay damages to his customer under section 31 of the negotiable instruments Act, 1881.
In case of default by the customer to close the account, the banker should close the account and send the money by draft to the customer. He/she will not be liable for dishonoring cheques presented for payment subsequently.
While closing the Mudaraba Saving Deposit (MSD), Al-Wadiah Current Deposit (ACD) and Short Notice Deposit (SND) a request letter to be obtain from the account holder. After obtaining the request from the account holder unused cheque leaves should be collected from the account holder and signature to be verified. Before closing the account prior clearance to be obtained from the general banking, investment, and foreign trade department. After getting clearance from the respective department account should be closed as per desire of the account holder by realizing our charges such as closing charge, service charge and excise duty etc and issue a payment order for the balance amount in favor of the account.
Analysis & Findings
Shahjalal Islami Bank Limited (SJIBL) is named from 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.
I have tried to represents a concrete view of this bank and find out the following major concerns:
Strength of SJIBL:
Strength is a resource skill or other advantage relative to competitors & the needs of the markets a firm serves or expects to serve.
Weakness of SJIBL:
A weakness is a limitation of deficiency in resource skills or capabilities that seriously impedes a firm’s effective performance. SJIBL’s weaknesses are as follows;
Opportunity of SJIBL:
Threats of SJIBL :
Taking into consideration of the conclusion experiences from working in the Foreign Exchange branch, the following recommendations can be inferred:
Though the performance of general customer services is very good, it has some problem of efficiency.
SJIBL tries to make familiar, Visa Debit Care to all classes of clients. But most of the clients of Shahajalal Islami Bank limited, Foreign Exchange branch feel fear to use it. So, SJIBL should introduce Visa Debit Card to clients and then the use & using procedure of this card should be informed to the clients and important thinks is visa Debit card chares so high so if they may not minimize the charge, clients fear will not overcome.
SJIBL should establish new and own ATM Booths at least where there are their own branches or network.
To minimize or reduce the charge of using the DBBL Booth (Par transaction 10 TK).If this charge will not reduce clients not use in SJIBL ATM card.
As borrower selection is the key to successful lending SJIBL should focus on the selection of true borrower selection does not mean that SJIBL has to adopt conservative landing policy but rather it means that compliance with the KYC/ to ascertain the true purpose of the loan . Loan monitoring is a continuous task and requires expert manpower. Therefore it is suggested that SJIBL should set up a separate loan monitoring cell, which will be responsible for monitoring its total loan portfolio with special care to the problem loan.
SJIBL must provide proper and most recent information on its website as and when it is available. This helps the uses of the information on the web. Also should bring out the latest software technology to make database networking and management faster.
It was observed that the officers of SJIBL bank have to spend more time in preparing vouchers; this can be avoided by the automation.
SJIBL have to more conscious about the promotional activities. They pursued advertisement campaign in order to build a strong image among the people. They should carry out aggressive marketing campaign to attract clients. They can give advertisements in newspaper and magazine, television.
The rapid growing of the Shahjalal bank limited is contributing both socially and economically through creating employment opportunity and sharing to the GDP of the total economy. It is very good, very attractive and Islam related Bank giving a new horizon in the banking system. That’s why the SJIBL has to open some new branch in different areas of Dhaka city. I feel need to open a new branch in Khilgaon area, because the number of Private Islami Bank in that area is only one, which is not sufficient for fulfilling the demand of that areas people. Except this some new industries & garments are growing in this area and Malibag Market, Taltola Market. Khilgaon Railgate Bazar is very well established business center of this area. So, I think this area will be very much prospective area to make profitable business and to achieve the organizational goal.
Shahjalal Islami Bank Limited, Foreign Exchange branch is very well organized in the view of working environment. To joining here, I had lot of chances to work and enhance my experience in the banking sector. The management system of SJIBL is very efficient.
Indeed, I am very happy and lucky to carrying my internship in the Shahjalal Islami Bank Limited and wish immense progress of the SJIBL in near future.