An analysis of Deposit Scheme of Shahjalal Islami Bank ltd.

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An analysis of deposit schemes of Shahjalal Islami Bank

Submitted to:

Mr. Badruzzaman

Controller of Examination.

National University.

Gazipur -1704

Supervised by:

Ms. Shammi Akhter

Lecturer.

Department of Business Administration

Dhaka City College.

Submitted by:

Md.Manjurul karim.

National university roll no- 0841050

National university registration no-0898829

Session-2007-2008

Department of Business Administration

Dhaka City College.

Last date of submission: 30th April, 2013

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Letter of Transmittal

30th April, 2013Mr.BadruzzamanController of the ExaminationsNational UniversityGazipur-1704

Subject:   Submission of Internship Report.

Dear Sir,

I am pleased to submit this report, which has been prepared for the requirement of the course Viva & Project Paper Defence-4265 (internship Program). I have prepared this report with a lot of enthusiasm since this report augmented my knowledge about Deposit scheme on Shah Jalal Islami Bank, college gate Branch.

I tried my level best to complete this report properly and to produce a meaningful report within all the constraints. I concentrated on areas that I believed would be the most relevant to make the report coherent as well as practical as possible.

It was a great pleasure for working on this report to learn some real life lessons and firsthand knowledge on Deposit scheme. I would be glad to furnish you with any clarifications, if you want. I therefore submit it, hoping that you would excuse the minor flaws.

Thank You.

Sincerely Yours,_____________                                                      Md. Manjurul Karim

National university roll no-0841050

National university registration no-0898829

Session:2007-2008

Department of Business Administration.

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Acknowledgement

The special thanks go to Ms. Shammi Akter. The supervision and support that she gave truly helped the

progression and smoothness of the internship program. Her co-operation is highly appreciated. Project studied

during the program were highly interesting and educative. The enthusiasm and interest shown by the office bearers

and members of the bank during my internship program were helped me in understanding appropriately the

functioning of this bank. This internship program made me realize the value of working together as a team

and gave me a new experience in working in a social environment, which challenges our mental and

physical faculties every minutes. The three months long internship programme provided me a lot of opportunity

to work in different settings and exposed me to interact with different sets of people. The working environment in

the Shahjalal Islami Bank was highly motivating and inspiring. I am highly thankful to all office bearers and

members of the Shahjalal Islami Bank who helped and guided me during my internship program. I am also

highly thankful to my faculty supervisor under whose able guidance I completed my faculty supervisor under

whose able guidance I completed my social internship program successfully. Last but not the least, I would like to

thank all social group with whom I worked together in the project during the internship program.

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Executive Summary

I prepared this Internship report on deposit scheme of Shahjalal Islami Bank. Deposit scheme is a

product provided by the commercial banks for receiving money from the depositor. Shahjalal

Islami Bank launches attractive 14 deposit schemes . These schemes are very much popular in

our country. They give attractive profit rate against deposit to the customer. It is very easy to

open deposit scheme accounts in shahjalal Islami bank. In the organizational part I explain about

the overall organizational performance and vision, mission, goal , objectives , and management

hierarchy. The project part consists of analysis of the deposit scheme of Shahjalal Islami Bank

ltd. From this analysis of deposit schemes, I tried to find out some recommendation issues that

might be an accurate way to overcome the drawbacks of Shahjalal Islami Bank. In the

comparative study I want to give an analysis between shahjalal Islami bank vs. others 3rd

generation commercial banks. In this analysis I provide Shahjalal Islami bank, Jamuna Bank and

Southeast bank deposit conditions. In some cases Shahjalal Islami Bank is higher than Jamuna

bank and Southeast bank. And in some cases Shahjalal Islami Bank is higher than Jamuna Bank

and Southeast bank. In some cases Shahjalal Islami bank is second position between Jamuna and

Southeast bank.

In the SWOT analysis of Shahjalal Islami Bank on the basis of deposit scheme I tried hard and

soul to find out the strength, weakness, opportunities and threats. Shahjalal Islami Bank deposit

position is better than other commercial banks.

In the remaining part of this report I give the major findings, conclusion and other

recommendation for fulfill my report requirement. In the major findings I tried to give good and

bad side of deposit schemes of Shahjalal Islami Bank. Conclusion part consists of the importance

of deposit scheme in case of financial and social development of a country. In the

Recommendation part I give what should be needed to overcome the negative side of deposit

schemes of Shahjalal Islami bank. All these part I want to give most reliable and relevant

information in case of deposit scheme.

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Table of content

Page no.

Letter of TransmittalAcknowledgementExecutive SummaryTable of Contents

Chapter-1 Introduction

1.1 1.2 1.3 1.4 1.5 1.6

Introduction Objectives of the studyScope of the StudyMethodology of the StudySources of Data collectionLimitations of the study

2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14

IntroductionOrganizational overviewVision of SJIBLMission of SJIBLStrategies of SJIBL Nature and legal status of SJIBLBoard of DirectorsManagement hierarchySocial welfare activities of SJIBLProducts of Shahjalal Islami BankCurrent position of Shahjalal Islami BankHighlights of performance of Shahjalal Islami BankEquity of the BankAreas of operations of Shahjalal Islami Bank

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Chapter-3 Main topic: Deposit scheme of Shahjalal Islami Bank

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14

Mudaraba monthly income schemeMudaraba Double money deposit schemeMudaraba Monthly deposit schemeMudaraba Millionaire schemeMudaraba Hajj deposit schemeMudaraba School bankingMudaraba Money Spining schemeMudaraba Housing deposit schemeMudaraba cash waqf deposit schemeMudaraba Lakhopoti deposit scheme Mudaraba marriage deposit schemeMudaraba mohor deposit schemeMudaraba Shikkha deposit schemeMudaraba Special term deposit scheme

Chapter-4 Comparative analysis

Shahjalal Islami Bank vs. Jamuna bankShahjalal Islami Bank vs. Southeast bankDeposit scheme comparisonGraphical ComparisonSWOT analysis

Chapter-5 Major findings

Chapter-6 Conclusion

Chapter-7 RecommandationIndex

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Chapter -1

Introduction

1.1 IntroductionThe main topic of this Internship report is Deposit Scheme of Shahjalal Islami bank. Deposit Scheme is the product by which commercial banks want to collect money from the customers and give highly attractive profit to the customer. Shahjalal Islami bank have 14 deposit schemes for the customer. Being islami bank this schemes are more reliable to the customers.

1.2 Objectives of the study

1.3.1. Broad Objective: The General objective of this report is to complete the Internship program and submit a report. For that reason I prepare this Internship report on deposit schemes.1.3.2. Specific objectives: - To submit a brief description about the Deposit Scheme. - Showing comparative analysis with 2 or 3 banks. - Showing graphical comparison with other two commercial banks. - Showing major findings.

1.3 Scope of the Report

Since I am working in the Shahjalal Islami Bank Ltd, Collage gate branch, I get the opportunity to gain knowledge of different part of banking system. The supervisor focuses me on Deposit Scheme of “Shahjalal Islami Bank”. I hope that I will be capable of doing these type of job in the future.

1.4 Methodology of the studyThe report would be based on an explanatory research paper. Here I would be discussing the Deposit Scheme of Shahjalal Islami bank & critically analyze the appraisal procedure with the standard one. For preparing this internship report I will basically use my experience from Deposit department on deposit scheme of Shahjalal Islami Bank Limited.

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1.5 Sourcesof Data collection

1.5.1 Primary sources:

Observation of banking activities. Experience gained during performing duties for Deposit scheme. Discussion with officials of Shahjalal Islami Bank Ltd.

1.5.2 Secondary sources:

Deposit browsheer of Shahjalal Islami Bank. Various document from Deposit scheme. Different website. Internal records.

1.6Limitations of the study

In undertaking this study, a number of problems were faced. Thus the study has several limitations. The limitations are:

a) Lack of knowledge:As a student, in the internship, I have no past practical experience of data collection, data processing, data analyzing, integrating and presenting. So it is a limiting factor for obtain accurate information.

b) Lack of timeFor the time limitation I could not gather more information to justify exact condition. The time constraints are limiting factors.

c) Small sample size:The study is limited by the size of the sample. As the sample size is very small, geographical and regional differences could not be included.

d) Lack of CooperationAll the persons in bank are not very cooperative. For that reason more information cannot provide into the report.

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Chapter-2Organizational profile

2.1: Introduction

First Islami Banking system started in Bangladesh in 1983 when Islamic Bank Bangladesh officially started their banking services. Islamic banking is banking activities that is consistent with the principal of sharia and its practical application

through the development of Islmic economics. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees for loans of money. Investing in businesses that provide goods or services considered contrary to Islamic principles is also haram. Although this principles have been applied in varying degrees by historical Islamic economies due to lack of Islamic practice, only in the late 20th century were a number of Islamic banks formed to apply these principles to private or semi-private commercial institutions within the muslim community. An early market economy and an early form of mercantilism, called “Islamic Capitalism”, were developed between the eighth and twelve countries. The monitary economy of the period was based on the widely circulated currency the gold dinar, and it tied together regions that were previously economically independent. A number of economic concepts and techniques were applied in early Islamic banking, including bills of exchange ,partnership and forms of capital ,capitalacumulation, cheques , promisory notes trusts, transactional accounts, loaning, ledgers and assignments. Organizational enterprises independent from the state also existed in the medieval Islamic world, while the institution was also existed in the medieval Islamic world , while the agency was also introduced during that time. Many of these early capitalist concepts were adopted and further advanced in medieval Europe from the 13th century onwards.

History of Islamic bankMirza Basheer-ud-Din Mahmood Ahmad was perhaps the first person to discuss Islamic Economics in detail in his books Nizame Nau and Islam ka Iqtisadi Nizaam . Later work included that of Naeem Siddiqi and Maulana Maududi. The writings of Muhammad Hamidullah  should be included in this category. Also the Iqtisaduna(Arabic: "Our Economics") is a major work on Islamic economics by a prominent Shia cleric Muhammad Baqir al-Sadr. Written between 1960 and 1961, it is al-Sadr's main work on economics, and still forms much of the basis for modern Islamic banking.They have all recognised the need for commercial banks and their perceived "necessary evil," have proposed a banking system based on the concept of Mudarabha - profit and loss sharing.In the next two decades interest-free banking attracted more attention, partly because of the political interest it created in Pakistan and partly because of the emergence of young Muslim economists. Works specifically devoted to this subject began to appear in this period. The first such work is that of Muhammad Uzair Another set of works emerged in the late sixties and early seventies. Abdullah al-Araby Nejatullah Siddiqi al-Najjar and Baqir al-Sadr were the main contributors.The early 1970s saw greater institutional involvement. The Conference of the Finance Ministers of the Islamic Countries held in Karachi in 1970, the Egyptian study in 1972, the First International Conference on Islamic Economics in

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Mecca in 1976, and the International Economic Conference in London in 1977 were the instrumental as the involvement of institutions and governments led to the application of theory to practice and resulted in the establishment of the first interest-free banks. The Islamic Development Bank, an inter-governmental bank established in 1975, was born of this process. Dr. Sami Hassan Homoud, a Jordanian who made his PhD in Islamic Banking, was the first one to write about Morabaha, and he established the Jordanian Islamic Bank in 1978.The first modern experiment with Islamic banking was undertaken in Egypt undercover without projecting an Islamic image—for fear of being seen as a manifestation of Islamic fundamentalism that was anathema to the political regime. The pioneering effort, led by Ahmad Elnaggar, took the form of a savings bank based on profit-sharing in the Egyptian town of Mit Ghamr in 1963. This experiment lasted until 1967 by which time there were nine such banks in country.In 1972, the Mit Ghamr Savings project became part of Nasr Social Bank which, currently, is still in business in Egypt. In 1975, the Islamic Development Bank was set up with the mission to provide funding to projects in the member countries. The first modern commercial Islamic bank, Dubai Islamic Bank, opened its doors in 1975. In the early years, the products offered were basic and strongly founded on conventional banking products, but in the last few years the industry is starting to see strong development in new products and services.Islamic Banking is growing at a rate of 10-15% per year and with signs of consistent future growth. Islamic banks have more than 300 institutions spread over 51 countries, including the United States through companies such as the Michigan-based University Bank, as well as an additional 250 mutual funds that comply with Islamic principles. It is estimated that over US$822 billion worldwide sharia-compliant assets are managed according to The Economist. This represents approximately 0.5% of total world estimated assets as of 2005. According to CIMB Group Holdings, Islamic finance is the fastest-growing segment of the global financial system and sales of Islamic bonds may rise by 24 percent to $25 billion in 2010.Addressing the Oman Investment Forum in October 2011, all conventional banks in Oman can offer Sharia-based financial services upon approval from the Central Bank of Oman (CBO).The Vatican has put forward the idea that "the principles of Islamic finance may represent a possible cure for ailing markets.

Largest Islamic bank Sharia-compliant assets reached about $400 billion throughout the world in 2009, according to Standard & Poor’s Ratings Services, and the potential market is $4 trillion. Iran, Saudi Arabiaand Malaysia have the biggest sharia-compliant assets.In 2009 Iranian banks accounted for about 40 percent of total assets of the world's top 100 Islamic banks. Bank Millie Iran, with assets of $45.5 billion came first, followed by Saudi Arabia's Al Rajhi Bank, Bank Millet with $39.7 billion and Bank Saderat Iran with $39.3 billion. Iran holds the world's largest level of Islamic finance assets valued at $235.3bn which is more than double the next country in the ranking with $92bn. Six out of ten top Islamic banks in the world are Iranian. In November 2010, The Banker published its latest authoritative list of the Top 500 Islamic Finance Institutions with Iran topping the list. Seven out of ten top Islamic banks in the world are Iranian according to the list.

Expansion into Islamic banking services

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In May 2012, Trend News Agency reported that the Chairman of the International Bank of Azerbaijan, Jahangir Hajiyev, announced that his bank would expand into Islamic banking services. The expansion will take place in countries around Azerbaijan, such as Russia and Kazakhstan. Dr. Hajiyev told Trend News Agency, "For the first time in Azerbaijan's history, we are planning to establish a new office in the field (Islamic banking), enabling the country to become a regional center for Islamic financing.

2.2Organizational Overview Shah Jalal Islami Bank Limited (SJIBL) commenced its commercial operation in accordance with principle of Islamic Sharia on the 10th May 2001 under the Bank Companies Act, 1991. During last eleven years SJIBL has diversified its service coverage by opening new branches at different strategically important locations across the country offering various service products both investment & deposit. Islamic Banking, in essence, is not only INTEREST-FREE banking business, it carries deal wise business product thereby generating real income and thus boosting GDP of the economy. Board of Directors enjoys high credential in the business arena of the country, Management Team is strong and supportive equipped with excellent professional knowledge under leadership of a veteran Banker Mr. Md. Abdur Rahman Sarker.

2.3Vision of SJIBLTo be the unique modern Islami Bank in Bangladesh and to make significant contribution to the national economy and enhance customers' trust & wealth, quality investment, employees' value and rapid growth in shareholders' equity.

2.4Mission of SJIBL:

1. To provide quality service to the customer.2. To set high standards of Integrete.3. To make quality Investment.4. To ensure sustainable growth in business.5. To ensure sustainable growth in business.6. To extend our customers innovative services acquiring state of the art technology blended

with Islamic principles.7. To ensure human resource development to meet the challenges of the time.

SJIBL Motto:

Committed to Cordial Service.

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2.5Strategies of SJIBL:

1. To strive for customers best satisfaction & earn their confidence.2. To manage & operate the bank in the most effective manner.3. To identify customers need & monitor their perception towards meeting those

requirement. 4. To review & update policies, procedures & practices to enhance the ability to extend

better services to the customers.5. To train & develop all employees & provide them adequate resources so that the

customers need are reasonably addressed.6. To promote organizational efficiency by communicating company plans, policies&

procedures openly to the employees in a timely fashion.7. To cultivate a congenial working environment.8. To diversify portfolio both the retail & wholesale markets.

2.6Nature & Legal status of SJIBL:

Name of the company: Shah Jalal Islami Bank.

Legal Form: A public limited company incorporated in Bangladesh on 1st April 2001 under the companies act 1994 & listed in Dhaka Stock Exchange Ltd & Chittagong Stock Exchange Ltd.

Commencement of Business: 10thMay, 2001.

Head office: Uday Sanz, Plot No. SE (A)

2/B Gulshan South Avenue, Gulshan-1, Dhaka-1212.

Chairman: AL hajj Anwar Hussein Khan.

Managing director: Md. Abdur Rahman Sarker.

Number of Branches: 79

Number of ATM Booth: 29.

No. of SME centers: 06.

Number of employees: 1,811.

Authorized capital: Tk. 6000 million

Paid up Capital: 5,566 million.

Face value per share: Tk. 10

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2.7Board of Directors of SJIBL

1.Chairman: AL hajj Anwar Husain khan

2. Vice chairman: AL hajj Md. Harun Miah &AL hajj Khondoker Sakib Ahmed

3. Director: AL hajj Suzzatuz Jumma , AL hajj Md. Faruque &AL hajj Toffazzel Hossain, AL hajj Sanaullah shahid,Alhaj Md. Farooq, AL hajj Md.Hasan, Al hajj Md. Abdul Barek, Alhajj Md. Solaiman,Alhajj Syed Nurul Arifeen, AL haj Abdul Halim, Alhaj Mohiuddin Ahmed,Alhaj Akkas Uddin Mollah,Alhaj Md. Towhidur Rahman, Alhaj A.K. Azad, Alhaj Md. Yonus .

4. Independent director: Alhaj Nazmul Islam Nuru,

5. Alternative director : Alhaj Md. Masud, Alhaj Rukun Uddin Khan.

6. Sponsor director: Alhaj Md. Abdul Mannan

7. Managing director: Md.Abdur Rahman Sarker

8. company secretary: Md.Emran Hossain.

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2.8Management Hierarchy:

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2.9Social Welfare activities In SJIBL:

With a view to providing financial assistance to the poor and needy people of the society and also for the welfare of the community, to this perspective, bank has established “Shah Jalal Islami bank Foundation” with the objective to provide health care, relief and rehabilitation, education, humanitarian of winter clothes during the winter etc.

Shah Jalal Islami Bank Foundation has a planning to establish the following projects and programs:

Shah Jalal Islami Bank International School and College Shah Jalal Islami Bank Hospital

The foundation have also drawn up programs to look after the education, health and medical requirements of all the people of rural areas where the bank has launched Rural Investment Programs with vision 2020.

The foundation already introduced a program to reward poor student who passes SSC and HSC exam. Students who are not financially sound, the foundation gives financial assistance to them. The bank has started it from 2006 under these project 111 poor and meritorious students awarded by monthly scholarship and lump sum money at yearly basis. This will motivate students to do better in future. The bank appreciates the good things in the society.

Services of SJIBL:

There has various account services in Shah Jalal Islami Bank. The name of that services are given below:

Alwadiah current deposit account: Alwadiah current deposit account is suitable for mainly businessman. Minimum balanced required of tk.5000 for maintaining account holder. Funds in the Al Wadiah Current Deposit shall be payable on demand and the Bank guarantees repayment of such funds in full, less the Bank charges, if any in accordance with normal banking traditions, during the banking hours. No profit is allowed this kind of account.

Mudaraba Saving’s deposit account: This account will be opened with a minimum of tk.2000/ which will be minimum balanced required to maintain the account. Not more than one account should be opened in one name for the same purpose. Profit on Mudaraba Savings Deposit Accounts shall be allowed at the rate as advised by Head Office from time to time under Mudaraba Principle. Profit is to be applied on half yearly basis i.e. in June & December and Profit shall be accrued in each month. Maximum withdrawals of Tk.25, 000/ from Mudaraba Savings Deposit Account twice a week are admissible. 

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Mudaraba Term deposit account: Mudaraba Term Deposit Account shall be opened for a fixed period varying from 90 days, 180 days, and 360 days or above and are payable at a fixed date of maturity. Mudaraba Term Deposit Accounts can be opened with a minimum deposit of Tk.2, 000/.

Mudaraba short Notice deposit: The deposits held in these accounts shall be payable on short notice period but the notice must not be less than 7 days. The deposits may be accepted for the period and rates of profit are fixed by Head Office from time to time.

2.10Products of Shah Jalal Islami Bank The products of Shah Jalal Islami Bank are two types. They are- *Deposit product. * Investment products.

Deposit product: In the deposit products there has various schemes. They are Mudaraba Monthly Income, Mudaraba Double Money, Mudaraba Monthly deposit, Mudaraba Millionaire, Mudaraba Hajj Deposit,and Mudaraba Money spinning.

Investment Products: The Investment Products of Shah Jalal Islami Bank are Small & Medium Enterprise Investment, Small Business Investment, Housing Investment, Housing durable, Car Investment, CNG conversion Investment, overseas employment Investment, Investment schemes for Doctors, Investment Schemes for Executives,Investment schemes for Marriage, Investment schemes for education.

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2.11Current Position of Shah Jalal Islami Bank:Branch Network:Shah Jalal Islami Bank has a strong Branch Network. It has total 84 branches. From that 46 branches are have in Dhaka zone, 19 branches are have in Chittagong, 5 in shylhet, 7 in Rajshahi, 2 in Barisal, 5 in Khulna, & 1 is a offshore banking zone situated in Gulshan. All the branches have strong network.They use Information technology for branch networking.

Equity: Generally in financial accounting Owner’s Equity consists of net asset of an entity. It appears on the Balance sheet. Shah Jalal Islami Banks total equity is 6000 core taka.

Capital adequacy: Shah Jalal Islami Bank has enough capital. It has total 6000 million core taka as Authorized capital. Its paid up capital is 5566 million. On the basis of capital it is a strong organization.

Information Technology: In the Shah Jalal Islami Bank there has at least one desktop computer in front of everyone desk.

Computer: There has total 13 desktop computer in Shah Jalal Islami Bank college gate branch. Today computer is essential part for banking sector. There has also E-Banking system in this bank.

Software: All the banking work are done by using “Bank Ultimus” software.They also use Microsoft Excel for some specific purpose.

Telephone: There has also six telephones in Shah Jalal Islami Bank, college gate branch.

Internet: Internet is essential part for Shah Jalal Islami Bank. This bank use Bank Ultimus Software by using “Internet Explorer” for specific accounts work. In Bank Ultimus software there has a path number to access the record file. For ex: For seeing current a/c the accounts path is 111,121,131 etc., for seeing savings a/c the path number is 531. There has also an authorize button for giving Authorize from authority. Bank use wi-fi router for internet.

Intercom: There has also five intercom for internal communication of the bank.

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2.12Highlights of Performance of Shah Jalal Islami Bank

SLno. Variables 2009 2010 2011 2012 2013 1 Paid up Capital 936 936 1872 2246 2740 2 No.ofEmployees 340 377 555 878 1299 3 No.of Branches 16 21 26 33 85 4 Total Deposit 12205 18091 22618 34280 47459 5 Investment(L&A) 10590 15516 20616 32919 43958 6 Classified

investment as % of total investment

0.49 0.19 0.62 0.44 0.94

7 Gross Income 1621 2563 3589 5285 7117 8 Gross Expenditure

1119 1718 2274 3475 5076 9 Net Asset Per

value(tk) 79.26 129 169 161 179.8 10 Net Income 256 463 647 818 1071 11 Earnings Per share

33.63 49.50 28.18 29.84 39.07 12 Total Asset 14448 21343 28347 44110 58921 13 Return on Equity% 34.46 38.44 23.21 25.58 25.10 14 Return on Asset% 1.76 2.17 2.60 2.26 2.08 15 Cost of fund 9.76 10.83 10.40 10.99 11.07 16 Stock dividend - - 20 22 25

2.13 Equity of the Bank:    (Figure in milloin)

Particulars 2009 2008

Equity Fund (Capital & Reserve) 5430                 4069

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Total equity of the bank as on 31stDecember 2008 was Tk. 4069 million and the total equity stood at Tk. 5430 million on 31th December 2009.

2.14Areas of operations of Shah Jalal Islami Bank

All branches of Shahjalal Islami Bank Limited are divided into three departments: General Banking Department. Foreign Exchange Department. Investment Department.

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General Banking Department:General banking department is one of the most important departments of Shahjalal Islami Bank Limited. Basically bank provides the main services to the customer through this department. In general this section of the Shahjalal Islami Bank Limited is divided into five sections.

Accounts opening section Cash section Remittance section Bills and clearing section Accounts section

Foreign Exchange DepartmentBanks play a very important role in effecting foreign exchange transaction of a country. Mainly transactions with overseas countries are in respect of imports; exports and foreign remittance come under the purview of foreign exchange department. Banks are the vital sectors by which such transactions are effected/settled. Central Bank records all sorts of foreign exchange transactions. The other banks dealing with foreign exchange are to report to Bangladesh Bank regularly (viz. daily, monthly, quarterly, yearly etc.). The foreign exchange department consists of three sections. They are:

Import section Export section Foreign remittance section

Investment Department:Banking business consists of borrowing and lending, Bank act as an intermediary between surplus and deficit economic units. Thus a banker is a dealer in money and credit. Banks accept deposit from large number of customers and then lend a major portion of the accumulated money to those who wish to borrow. In this process banks secure reasonable return to the savers, make funds available to the borrowers at a cost and earn a profit after covering the cost of funds. Banks, besides their role of intermediation between savers and borrowers and providing an effective payment mechanism, have been allowed to diversify into many new areas of better paying business activities.

Credit Rating Report

Long Term Short Term

Entity Rating AA+ ST- 2

Date of Rating April 03, 2009

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Credit Rating Information and Services Limited (CRISL) upgrades the rating of Shahjalal Islami Bank Limited(SJIBL) to A+ (pronounced as single A plus) from A (pronounced as single A) in the Long Term and reaffirms short term rating to ST-2.

Chapter-3Deposit Scheme of ShahJalal Islami Bank ltd.

Deposit scheme is a package offered by the commercial bank to invite people forsaving their money into the banks. Shah Jalal Islami Bank launches attractive Deposit Schemes & offered their customers to deposit money into the bank.The name of deposit scheme of Shah Jalal Islami banks are given below:

3.1 Mudaraba Monthly income Scheme.3.2 Mudaraba Double money Scheme.3.3 Mudaraba Monthly deposit Scheme.3.4 Mudaraba Millionaire scheme.3.5 Mudaraba Hajj Deposit Scheme.3.6 SJIBL School Banking Scheme.

3.7 Mudaraba Money Spinning Scheme. 3.8 Mudaraba Housing deposit scheme. 3.9 Mudaraba Cash Waqf deposit Scheme. 3.10 Mudaraba Lakhopoti deposit scheme. 3.11 Mudaraba Marriage deposit scheme. 3.12 Mudaraba Mohor deposit scheme. 3.13 Mudaraba Shikkha deposit scheme. 3.14 Mudaraba Special Term deposit scheme.

.

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Descriptions about schemes are given below:

3.1Mudaraba Monthly Income Scheme

Ordinary savings persons especially foreign wage earners and service holders wants to save their money long term into the bankand from which they can meet their day to day expense. Theywant to withdraw their money monthly basis but main saving money will remain same. As sharia based welfare bank, people have a lot of interest on Shah Jalal Islami Bank.

Term:This account will be opened for Three years basis. After completing the term the full amount will be returned.

Payment of Profit:At present 500 tk. Will be paid as profit against 50000 tk. of deposit money & 1000 tk. will be paid as profit against 1, 00,000 tk.But profit given on others deposit will be given at the same rate.

Profit & wattage: After completing the term wattage will give the full advantage when “Mudaraba Monthly Earning Receipt” converts into cash.

Calculation of interest on monthly deposit scheme are given below:Period/Inst. 500 1000 2000 5000 10,000 25000 50,000 3 years 21,850 43,700 87,400 2,18,500 4,37,000 1092500 21,85,000 5 years 41500 83000 166000 415000 830000 2075000 4150000 8 years 81000 162000 324000 810000 1620000 4050000 8100000 10years 116500 233000 466000 1165000 2330000 5825000 1,16,50,000

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Procedures of opening Monthly Income SchemesFor opening monthly income schemes at first a customer needs to contract with accounts opening section. Then take a form of monthly deposit schemes. Then they need to fill up the whole form & also give 2 copies of account holder’s photo. There also need a nominee. & a photo of nominee also given. Nominee also give his/her signature on accounts holder photo. After fulfill the form then banker give the account number of the holder. Then at first banker give the posting to the Bank Ultimus software. After completing bank ultimus software the accounts number is automatically given. Then banker took the number into Microsoft excel.

Cash giving before completing the term: Generally account holder cannot withdraw his money before completing the term. But account holder can withdraw his/her money by issuing certain cause and give an application regarding the cause. Tax will be cut off according to the government law. Bank can change this rules any time &the depositor will obey this rules.

Monthly Income scheme Percentage 1 year 13.33% 2-3 years 12.66% 3 years 12.30% 5 years 12.23%

8 years 12.07%

10 years 12.05%

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3.2Mudaraba Double money deposit scheme

Deposit creates the money & asset enriches the country’s economy. For Increasing the deposit money bank can give the safe offer to the public by Various schemes. “Mudaraba Double money deposit scheme is such type Of schemes. Under this schemes deposit money will be double or thrice or More than that within six years or nine years six months.

Amount of deposit:10,000 money or more than that will be deposited under this scheme in any time of the month. “Not Negotiable” deposit receipt will be given to the depositor.

Profit & Wattage:The account holder who opens this account under double scheme, they willget profit from deposit according to the Islamicsharia. After fulfilling the term deposit receipt will give the advantage. But after open the account the profit will not give if the amount will withdraw within 1 year. Profit will give on this deposit account after 1 year but fulfilling 6 years. Drawing money after six years but before certain time double profit for six years& the given rate for rest of time of this deposit.

Primary deposit Profit Money after fulfilling the term

For Mudaraba double scheme For Mudaraba Double Scheme

10 thousand 20 thousands. 30 thousands

50 thousand 1 lakh. 1 lakh 50 thousands

1 lakh 2 lakh. 3 lakh.

10 lakh 20 lakh. 30 lakh.

50 lakh 1 core 1 core 50 lakh.

Cash before fulfilling the term: Generally this deposit money will not withdraw before fulfilling the term. But the account holder can withdraw money from his account by showing certain written reason. 100 taka service charge will be cut off for breaking the Double money deposit scheme & Triple money deposit scheme. Tax will be charged on this deposit according to the government law. Bank hold the right of change the rules or cancelled the rules.

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3.3Mudaraba Monthly deposit Scheme

Shahjalal Islami Bank run this scheme for middle class & lower class service holder. Under this scheme anyone can deposit money in monthly & can withdraw money in any time of the month.

Eligibility:

1) Any Bangladeshi sound health public can open this scheme.2) An introducer signature , attested passport size photo

by the dutiful bank service holder of this bank are needed.3) Parents or lawful parents can open minor account.

Rate of Installment:

Tk. 100 Tk. 250 Tk.500 Tk. 1000 Tk.2000 Tk.5000 Tk. 10000 Tk.25000 Tk.50000

Monthly deposit will be on rate. Monthly rate of Installment will be assumption during accounts opening.

Term duration:5, 8 & 10 years.

Profit & wattage:This deposit will be accepted according to Islami sharia Mudaraba principles. Bank gets the profit before investment, the part of that profitPaid to the account holder as profit based on wattage.

Procedures of Payment of Installment: The installment will be paid within 25th date of every month by cash, cheque or

permanent instruction. The installment will be paid the following date if the 25th date remain holiday.

Clearing of cheque will be needed for payment of cheque & it will be needed within 25 th

date. Otherwise it will treated as bad debt. Depositor can pay installment money by the permanent direction of account holder. This

time tk. 50 as service charge will be given by depositor. Advance installment money can be paid. But no profit will be given for advance

payment.

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Monthly 25 taka will be paid as late fee for bad debt,& that money will be paid with installment money.

Others Instruction of procedure: Account holder can transfer his account from one section to another section by the

written application. Account holder receive 80% investment advantage on deposit money after regular

payment of 2 years. The tax will be written off from this account according to the Government Law. Bank poses the right of cancelling the rule, & change the rule. The depositor will obey

this.

Monthly Deposit Scheme: Monthly installment and provisional amount payable at maturity (amount in Taka)

PeriodInstallment

500 1,000 2,000 5,000 10,000 25,000 50,000

3 Years 21,850 43,700 87,400 2,18,500 4,37,000 10,92,500 21,85,000

5 Years 41,500 83,000 1,66,000 4,15,000 8,30,000 20,75,000 41,50,000

8 Years 81,000 1,62,000 3,24,000 8,10,000 16,20,000 40,50,000 81,00,000

10 Years 1,16,500 2,33,000 4,66,000 11,65,000 23,30,000 58,25,000 1,16,50,000

Monthly Deposit Scheme:*

i) 3 Years 12.30%

ii) 5 Years 12.23%

iii) 8 Years 12.07%

iv) 10 Years 12.05%

3.4Mudaraba Millionaire Scheme

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Shahjalal Islami Bank starts millionaire scheme for lower class & middle class service holder. Under this scheme anybody can deposit monthly & after certain time he/she can withdraw 1 million money at a time with profit.

Eligibility: 18 years old any healthy Bangladeshi citizen can open this millionaire account. An Introducer signature & a attested passport size photo is needed for opening this

account. Parents can open this account for minor.

Term: 12, 15, 20 & 25 years.

Rate of Installment, profit & wattage:This deposit will be accepted based on Islami Sharia mudaraba principle. Bank will give profit to the depositor that profit which profit get by the bank before investment.

Procedures of payment of Installment:a) The payment will occur by cash , cheque or permanent instruction within 25 th date of

every month. If 25th date remain holiday then one body can give the payment in following date. If anybody fails to pay installment then it will decided to bad installment.

b) In case of cheque payment clearing of the cheque will be done within 25 th of every month. Otherwise it will be treated as bad installment.

c) Installment payment can occur in advance. No additional profit will be given by the bank for advance installment payment.

d) Monthly 25 taka will be paid as late fee in case of bad installment. This bad installment will be paid with next installment.

Closing of account before fulfillment of the term:a) Depositor can close his account by giving 100 tk. service charge for special purpose.b) No profit will pay in case of closing account before fulfillment of 1 year. The profit will

give at the given rate in case of closing account after 1 year but before fulfill the term.c) The account will remain close automatically if any depositor fail to pay 4 installment. The

profit will give for the deposit according to the above rule & account closing charge will be considered that time. Withdraw the remaining balance of the account after 3 months of account closing , it will accepted by the pay order by giving the notice of the account holder.

d) The tax will be charged according to the Government rules.e) Bank poses the right of cancelling the rule, & change the rule. The depositor will obey this.

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Millionaire scheme term Rate of profit 5 years(Tk.12050 per month) 12.23% 10 years(Tk.4300/month) 12.02% 12 years(Tk.3280/month) 11.25% 15years(Tk.2,120/month) 11.30% 20years(Tk.1080/month) 11.45%

Provisional rate of mudaraba Millionaire scheme:

3.5Mudaraba Hajj deposit Scheme

Hajj is one of the fundamental prayers for Muslim. Though having interest some people cannot do Hajj prayer due to lack of money.Again some people arrange this money such time while that person reach to the last stage of the life. Bank opens “Hajj deposit Schemes” for that interested person who can built there deposit money at the certain time. We arrange the highest wattage under mudaraba principle considering the importance of the Hajj.

Eligibility: 18 years old healthy Muslim person can open account under this scheme. This account will open only individual person. An Introducer signature, a passport size photo which is attested by the bank known

dutiful person is needed to open this account. Father-mother or any other lawful parents can open this account in the name of minor.

Term: The duration of this account is 1 years to 25 years. 12 monthly installment will be considered as 1 year.

Amount of Installment:This deposit will be accepted under Islamic sharia principle & bank will pay yearly profit considering the term, such profit which is getting by the bank before investment.

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Term(Year) Suitable for accounts opening in 2005 Monthly Installment Payable at hajj scheme after

fulfilling the term. 1 10,200 1,29,950

5 1,925 1,54,475

10 840 1,83,950

25 175 2,78,350

Proceedures of payment of Installment:a) Installment money can be paid by the cash, cheque & permanent instruction by the

account holder within 15th date of every month.If 15th date remain closed then the installment money can pay in the following date. Otherwise it will treated as baddebt.

b) Clearing of the cheque will be occurred within 15th date of every month incase of cheque payment. Otherwise it will treated as bad Installment.

c) Full premium payment can be paid in advance. Additional benefits can not be provided in advance for the full premium.

d) Monthly tk. 25 as late fee will pay as bad installment. That late fee will be paid with following month.

Closing account before fulfilling the term: a) At any time account holder can close his account by giving 100 tk service charge.b) Any depositor is not interested to observe following hajj no profit will be given if they

close their account before fulfilling the term. Profit will give according to assess rate , if the account will close before fulfilling the term.

c) Normally the account will close if any depositor fails to pay at a time five installmant.d) It can be calculated according to the official rules or tarriffs can be cut.e) Bank poses the right of cancelling the rule, & change the rule. The depositor will obey

this.

Provisional rate of profit upto 10 years under this scheme is 12.05%-12.50%.

Mudaraba Hajj scheme deposit: Monthly Installment & provisional amount payable at maturity(amount in taka)

30

Year

Account opened in 2012

Monthly Installment

Expected Amount payable at Maturity to meet-up Hajj Expenses

Monthly Rate

1 24,000 3,08,250 12.50%

2 12,000 3,28,450 12.45%

3 7,800 3,41,550 12.40%

4 5,750 3,58,250 12.35%

5 4,500 3,74,250 12.30%

6 3,650 3,89,250 12.25%

7 3,000 3,99,100 12.20%

8 2,500 4,06,600 12.15%

9 2,100 4,11,250 12.10%

10 1,800 4,19,450 12.05%

Last Update Date: November 06, 2012

Software: This bank use bank ultimus software for doing work under this scheme. Also use Microsoft excel for doing this work.

3.6Mudaraba School Banking

A future plan for every child.

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Mudaraba School banking is important for those persons whom have school going children. It is a unique opportunity to make the savings habit of your child. Today’s savings is tomorrows security.

Features:1) This is a savings account.2) School going children having age limit of 5- 17 years can open

the account.3) Minimum open balance is tk. 200/-4) Free ATM card.5) Profit rate 6.5%6) Profit application on Daily Product basis.7) Profit to be paid on Half-yearly basis.8) All charges/fees are free except Government charges.

Account opening Process:Account will be opened in the name of the student & will be operated by his/her parents/legal guardian till attaining majority of the student. Thereafter the status of the account will be changed to MSD a/c & all relevant procedures shall be applicable.

Identity Document: For children:

1) Recent passport size photographs.2) Copy of Birth certificate or similar documents.3) Copy of valid school Identity Card / recently paid

tuition fee pay slip.

For Parents:

1) Recently passport size photographs.2) Copy of National ID Card or similar document.

3.7Mudaraba Money Spinning Scheme

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Mudaraba Money Spinning account will give higher profit rate(provisional) than any other savings account. The relevant charges are free. The account is fully shariah complaint that has been designed to cater the needs of valued customers.

Features: Minimum Opening Balance Tk.10, 000.00(taka ten thousand) only.

* Yearly profit Rate (provisional)

* Tk. 10 lac & above - 9.00% * Tk. 5 lac to less than tk.10 lac – 7.50% * Tk. 1 lac to less than tk.5 lac - 6.50% * Tk. 50,000 to less than Tk. 1 lac- 6.00%

Minimum daily balance of Tk. 50,000.00 to be retained to get profit.

Profit applicable on Daily product basis.

Profit to be paid on Monthly basis.

1st cheque book is free & Tk. 40.00 will be charged for subsequent each cheque book ( each cheque book contains 10 leaves).

Free SMS banking.

Free Debit card.

All charges are free. ( subject to retention of minimum daily balance of Tk.10,000.00 up to six month otherwise Tk. 1000.00 plus VAT will be imposed).

Excise Duty, VAT & TAX are as per prevailing NBR rules.

*conditions apply.

3.8Mudaraba Housing deposit scheme

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This is a special deposit scheme under housing investment scheme for being future customer. The term of this scheme is 1 - 10 years. This deposit will be accepted based on Islami sharia mudaraba principle. Depositor will get the profit on the based of wattage.That profit which get the bank before investment.

Mudaraba Housing deposit scheme Provisional rateAverage balance less than 1 core 5.00%Average balance 1 crore to less than 25 crore 7.00%Average balance 25 core to less than 50 crore 8.00%Average balance 50 crore to less than 100 crore 8.50%Average balance 100 crore & above 9.00%

3.9Mudaraba Cash waqf deposit scheme

Introduction:Waqf is a special institution according to the islam. Holy QUARAN emphasis on the waqf. According to the Surah Al-IMRAN “You will not get blessings of Allah if you will not expense your money in the road of GOD.” According to the Prophet Muhammad(sm), “Everything will be destroyed accept three things after the death, the three things are contribute into knowledge, donate your money for welfare work, & contribute for social welfare. Waqf has special importance for social , economic & tradition.

What is Mudaraba cash waqf ?It is a new addition into the banking sector according to the Islamic economy. Cash waqf is a chance to invest money for serving society & religious institution.

Cash waqf is a chance to invest money for religious & social welfare through the part of public deposit. This earning will expense at different sector as waqf asset.

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Objectives for running mudaraba cash waqf:Shahjalal Islami Bank starts this scheme for social & human welfare. Shahjalal Islami Bank runs this scheme for social investment & human welfare. Mudaraba cash waqf tries to

Invest money into religious &social service by the part of solvent people money. This money will expense into different sector as waqf asset.

Eligibility for buying waqf certificate:Primarily 1000 taka will deposit for open this account. Depositor will get cash waqf certificate after deposit simultaneous money. Depositor will get a certificate after deposit full money into the bank. If full money is not deposit then no certificate will issue. This installment money will receive by the pay in slip.

Instruction for managing the workings of cash waqf certificate:a) Cash waqf will receive as Islamic sharia based endowment.

Bank will do the work of cash waqf managerial work on behalf of the customer.b) Cash waqf is eternal & this account will run the title of waqf.c) Waqf can select independently any creek as wish from bank selected 27 creeks. This 27

creek are given below:

Family Rehabilitation:1) To change the condition of below poverty line people.2) Physical rehabilitation of disabled and disadvantaged people.3) Beggar rehabilitation.4) Distressed woman rehabilitation.5) City electronics poor population change.

Education & Culture:6) Distribute free educational equipment & dress among the orphanage.7) To develop & spread standard education for increase the efficiency.8) To give informal education to the children & mother into their home.9) Physical education & sports opportunities.10) Local culture & art development.11) Daoyati activities manage.12) Helping poor intellectual student in the field of education by giving occupation.13) Providing help into the high study.

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14) Providing help to spread education into the neglegate area.15) Increase facility for poor & orphan student for receiving education.16) Giving education chair.

Health & Medical service:17) Provide medical & health service into the village.18) Provide pure drinking water into the mosque & other institution.19) Establishing hospital & clinic especially for poor people.20) Providing loan for health research& for particular disease.

Social Utility service:

21) Provide financial assistance to the woman whom are affected by the acid.22) Giving lawyer assistance for establishing law right for destitute. 23) Provide assistance for giving dowry less marriage of poor girl.24) Built village road & tree plantation.25) Provide assistance for peaceful cooperation of non-Muslim.26) Madakasakti, Jaya and other social anomie and create social awareness against all

lawless suspension.27) To develop, establish social service institution.

Conclusion:Any Muslim can buy mudaraba cash waqf certificate. Any person can buy one or more certificate. Donation is considered as a pure work in Muslim. For this reason shahjalal islami bank invite rich muslim persons. So for this goal shahjalal islami bank invites rich muslims for go ahead. So all rich person will open this account for helping poor people.

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3.10Mudaraba Lakhopoti deposit scheme

Mudaraba lakhpoti deposit scheme is an another deposit scheme for shahjalal Islami bank. So after a certain time one person can get 1 lac taka by the small deposit. This deposit money is a big receipt for low income person.Shahjalal Islami bank starts this scheme to inspire small depositor.

Term:2years, 5 years, 8 years & 10 years.

Rate of Installment:Tk.2350, Tk1250, Tk.650 & tk.450

Cash before fulfilling the term:(1) If anybody fails at a time 2 installment money, he will pay this money with 3rd

installment & Tk.5 as a late fee will pay at this time. If anybody fails to pay at a time 3 installment money then the account will be cancelled. That time depositor will become receivable the deposit account profit.

(2) No money will withdraw before fulfill the term. If any depositor withdraw his money before fulfill the term then &no profit will get if it is less than 1 year . If it is more than 1 year depositor will get the profit.

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3.11Mudaraba Marriage deposit Scheme

To give marry the children is a mental duty for parents. Parents can operate his/her family remains a headache of giving marriage of his/her son/daughter marriage.

There should be a plan from the beginning into parents mind that they will give their son/daughter marriage at the right time. They sell their asset for giving their son/daughter marriage if there has no planning before that. These procedures are also unplanned work. So if anybody keep plan about this work & if they have money safety about giving marriage about their daughter, they will get rid of from this kind of bad thinking.

For this special purpose & give the financial assistance shahjalal Islami Bank opens a long term deposit scheme. The objective of this scheme to provide financial help in the marriage time of daughter/son.

Term:10 years, 12 years, 15 years, & 20 years.

Rate of Installment:Tk. 250, tk.500 , tk.1000, & tk.2000.

Procedures of opening this account:

(1) One or more account will open in the one name in same section.(2) Parents can operate the minors account.(3) Depositor will select a nominee at the time of accounts opening.(4) 2 copy for depositor & 1 copy for nominee will be given at the time of accounts

opening.(5) Term & amount of Installment will not change in the next in any condition.

Cash before fulfilling the term

(1) If any person wants to withdraw money before fulfilling the term, the profit will be given at the payable rate. But if withdraw money before fulfill 1 year then no profit will be given.

(2) If any person wants to close his account at the middle of the term then he will get full money for previous term & profit will be paid for short term in the savings account.

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3.12Mudaraba Mohor Deposit Scheme

In Islam Husband holy duty is to pay wife’s mohor. Though this mohor is selected according to the Islam but most of the time it won’t pay fulfill.Though person hope nobody can pay the mohor in following time. As a result wife will not get the money & the other side husband feels shame.

On this think Shahjalal Islami Bank take initiative to open mudaraba mohor deposit scheme. As a result person gets the opportunity to deposit money for repay the mohor by small depositing in the mohor scheme.

*Any Bangladeshi married or non-married citizen can open this account in the name of his wife or his own name.

Monthly installment: tk.500 , tk.1000, tk.2000, tk.3000,tk.4000,tk.5000 & tk.10000.

Term: 3 years, 5years, & 8 years.

Cash before fulfilling the term: Profit will not paid. Profit will pay at the payable rate If anybody close this account

before 3 years & after 1 year . If any person wants to close account at the middle time then he will pay full money for

the previous term & profit will be paid at the payable rate for short term in mudaraba savings account.

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3.13Mudaraba Shikkha deposit scheme

Education is the backbone of a nation. The develop countries education rate is always high. About 85% people live in rural in our country. They totally depended on agriculture for their earnings. Their son/daughter have strong desire for receive education. At the same way below proverty line people receive primary education. They cannot receive higher education due to lack of money. The cost of education increases from primary level to higher level. Then cost willnot bear by the parents. As a result , parents can’t give higher education . Side by side country lost an educated person. Shahjalal Islami Bank runs “Mudaraba shikkha deposit scheme” to consider above topic. Parents can open this account under this scheme for their son/daughter.

Term: 10 years, 15 years & 20 years.

Rate of Installment:100, 250, 500, 1000, 3000 & 5000.

Cash before fulfilling the term:(1) If any person wants to withdraw money before fulfilling the term he will get the profit

at payable rate. But no profit will be given if withdraw money before fulfill the term.

(2) If any person wants to close his account at the middle of the term then he will get full money for previous term & profit will be paid for short term in the savings account.

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3.14Mudaraba Special Term Deposit Scheme

Shahjalal Islami Bank starts “Mudaraba special term deposit” to fulfill public desire.

Amount of Investment:1,00,000 taka.

Term of Investment: 3 months, 6 months, 12 months.

Special benefit: Highest 80% investment benefit can take against investing money. Investing money can withdraw in any time before fulfilling the term. One person can reinvest after getting the dividend.

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Chapter-4Comparative analysis

In this report I need to compare shahjalal Islami Bank deposit scheme with other same generation commercial bank.

Compare with Shahjalal Islami Bank vs. Jamuna bank. Compare with Shahjalal Islami Bank vs. Southeast bank.

Basis of comparisons: Comparative analysis.

SWOT analysis.

42

Comparative analysis

Shahjalal Islami Bank vs. Jamuna BankName of Deposit Schme

Shahjalal Islami Bank Jamuna Bank Terminal Amount after the period(Compare)

DepositedAmount

Term Profit rate

Terminal Value after the Term

DepositedAmount

Term Profit rate

Terminal Value after the Term

Mudaraba monthly income scheme

100,000 1 year 13.33% 1,13,330 1,00,000 1 year 11.40%

1,11,400 1,930/- moreIn SJIBl

100,000 3 years 13.33% 144289.70

100,000 3 years

12% 140492.80

3796.90 more in SJIBL

1,00,000 5 years 13.33% 184243.52

1,00,000 5 years

12.30%

1,78,607.13

5636.39/-more in SJIBL

Mudaraba

Millioniare

scheme

1,00,000 5 years 12.23% 176234.17

1,00,000 5 years

12.16%

177813.31

1579.14/- more in SJIBL

100,000 10 years

12.02% 3,10,584.82

100,000 10years

12.57%

2,07,332.22

1,03,252.60/-More in Shahjalal islamiBank

1,00,000 15 years

11.30% 2,91,710.22

1,00,000 15years

12.80%

6,25,427.04

3,33,716.82/- more in Jamunabank

MudarabaDouble money deposit scheme

1,00,000 1 year 12.80 1,12,800 100,000 1 year 13.22%

1,13,200 400/-more in Jamuna bank

5,00,000 1 year 12.80% 5,64,000 500,000 1 year 13.22%

9,21,217.59

3,57,217.59/-More in Jamuna.

Interpretations: SJIBL-Jamuna Bank

Mudaraba Monthly income scheme: 1,13,330-1,11400=1930 more in SJIBL

Mudaraba millionaire scheme=176234.17-177813.31=1579.14/- more in SJIBL

Mudaraba Double money deposit scheme:112800-113200= 400/-more in Jamuna bank.

Comment: Shahjalal Islami Bank is better for deposit scheme.

43

Comparative analysis

Shahjalal Islami Bank vs. Southeast Bank

Interpretations: Shahjalal Islami Bank-Southeast bank

Mud.Millioniare scheme=1,13,330-1,11,400=1930/-will get anybody if he do the deposit scheme in Shahjalal Islami bank.

Mud.Double money deposit scheme=2,08,195.18-200575.58=7619.60/-will get anybody do the deposit scheme Shahjalal Islami Bank.Comment : Shahjalal Islami bank is better for deposit scheme.

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Name of the deposit

Shahjalal Islami Bank ltd. Southeast bank ltd. Terminal amount change after the period

DepositedAmount

Term Profit rate

Terminal Value after the Term

DepositedAmount

Term Profit rate

Terminal Value after the Term

Mudaraba Millioniare deposit scheme

100,000 5 years

13.33% 1,13,330 1,00,000 5 years

11.40% 1,11,400 1,930/- moreIn SJIBl

100,000 10 years

12.02% 3,11,139.88 100,000 10 years

11.63% 3,10,584.82 555.06/-tkMore in SJIBL

5,00,000 5 years

12.23% 8,90,255.81 5,00,000 5years

11.57% 8,81,170.84 9084.97 more in SJIBL

5,00,000 10 years

12.02% 15,85,110.83

5,00,000 10 years

11.63% 15,02,378.13

82,732.70 more in SJIBL

MudarabaDouble benefit deposit scheme

1,00,000 6years

12.80% 2,08,195.18 1,00,000 6years

12.25% 200575.58 7619.60/-More in SJIBL

5,00,000 6years

12.80% 10,40,975.88

5,00,000 6years

12.25% 10,02,879.01

38096.87More in SJIBL

10,00,000 6years

12.80% 20,81,951,75

10,00,000 6years

12.25% 20,05,758.02

76,193.73More in SJIBL

Deposit scheme Comparison for 2012Particulars Shahjalal islami

bankJamuna bank Southeast bank Graphical presentation

Total deposit

1,138,832,379.78 120,000,0000.00 100,000,0000.00

Figure-1

Deposit money from deposit scheme

18,39,87920.78 55,000,0000.00 20,000,0000.00 Figure-2

Percentage position in scheme deposit

16.15% 45.83% 20% Figure-3

Total income in2012 130 core 100 core 110 core Figure-4

Income from deposit scheme

6.50 core 4 core 3.85 core Figure-5

Deposit income vs. total income(%)

5% 4% 3.5% Figure-6

Loan against deposit(%) 80% 100% 100% Figure-7

Loan recovery(%)

80% 100% 100% Figure-8

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Graphical presentation

Figure-1(all amount in core)(Total deposit)

SJIBL Jamuna bank Sutheast bank90

95

100

105

110

115

120

125

Figure-2:(all amount in Core)(Deposit money from deposit scheme)

SJIBL Jamuna bank Southeast bank0

10

20

30

40

50

60

46

Figure-3(percentage position in scheme deposit)

SJIBL Jamuna bank Southeastbank

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

Fig-4(amount in core)(Total income in 2012)

SJIBL Jamunabank Southeast0

20

40

60

80

100

120

140

47

Figure-5(amount in core)(Income from deposit scheme)

SJIBL jamuna bank Southeast bank0

1

2

3

4

5

6

7

Fig-6(Deposit income vs. total income in 2012 in %)

SJIBL Jamuna bank Southeastbank0%

1%

2%

3%

4%

5%

6%

48

Fig-7(Loan percentage against deposit)

SJIBL Jamuna Southeast0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Fig-8(Loan recovery from deposit loan)

SJIBL Jamuna bank Southeast bank0%

20%

40%

60%

80%

100%

120%

49

SWOT ANALYSIS

SWOT means strength, weakness, opportunity & threats. It is like a research study. In this report I mentioned shahjalal islami bank SWOT analysis on the basis of deposit scheme.

Strength:1) Attractive profit rate: Shahjalal Islami Bank provides attractive profit rate against deposit scheme. They provide 13% - 15% profit rate in various schemes.

2) Customer has faith on deposit of this bank: Shahjalal islami Bank is a commercial bank whom follows the Islamic rule for doing bank operation. In our country most of the people are muslim. For that reason public has faith on them and get more customer.

3) Efficient employee: Shahjalal Islami bank has efficient employee whom do their work efficiently. They do well conversation with customers. For that reason they do well banking activities. They can explain any topic to their customer effectively.

4) Strong motto: The Shahjalal Islami bank motto is “Committed to Cordial Service”. For that reason many customer become confident on this bank for strong motto.

Weakness:

1) Poor Experience: Though they have efficiency but they have poor experience. Because their operational time is only 11 years.

2) Managerial Skill is poor: In Shahjalal managerial skill is poor. Because of their low experience.

Opportunities:

1) Launching lot of deposit schemes: They launch a lot of deposit schemes. For that reason people have an opportunity to take decision.

2) Provide lot of profit Installment: They provide a lot of installment for profit to the customer

in deposit scheme. For that reason people can take advantage.

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3) Getting customers: They can catch a lot of customers through these schemes.

Threats :

1) Political Threats: At present political condition is not favor of their because of being Islami bank. Because present government wants to ban religious political party. In our country most of the business institution built by political team. So for this reason I think Shahjalal Islami bank has political threats.

2) Skilled Competitors: They have a lot of skilled competitor and competitors also strong than theirs. Because their competitors have much experience in deposit scheme field.

3) Strong Publicity: Competitor publicity is stronger than Shahjalal Islami bank. Because its competitor is provide lot of advertisement in Television, radio, and website.

4) Strong fund power: Competitors have vast fund power than theirs. Because of their operational time is more than shahjalal Islami bank.

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Chapter-5

Major findings

After the analysis I got some positive and negative sides in deposit schemes of Shahjalal Islami Bank. The positive sides are discussed below:

Shahjalal Islami Bank provides attractive profit rates against deposit schemes. They provide 13-15% profit rate against deposit. So I think it is also the positive side of them for catching more customers.

People can deposit money into banks through deposit schemes. So, Shahjalal Islami bank can compete with others commercial banks through these deposit schemes.

They provide a lot of profit installments against deposit. By the way customer can take profit advantage from them. By this installment they get more customers.

Though having positive sides they have some negative sides also. This negative sides are given below:

Shahjalal Islami bank has poor experience in case of deposit scheme. They do poor publicity. Because they give poor advertisement into the television channel. They cut more service charge than others commercial banks.

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Chapter-6

Conclusion

Deposit scheme is a package by which commercial bank can collect money from the customers and give profit against this deposit. Bank gets tax and others charge by this deposit. So Government can earn tax by this bank deposit. Government can use that money for social and economical purpose. For this deposit scheme people become conscious about money savings. For that reason people will not face any trouble during the sudden accidental time. Now most of the bank open school banking schemes. By this scheme the parents whom children are go to the school, they can save money. Bank gives attractive profit in every month. For that reason this profit will be helpful for their parents. So in the eye of economy deposit scheme is very important for our economy. Every bank has hajj deposit scheme. By the hajj deposit scheme Hajj wishing people can deposit their money for future Hajj prayer. By the mohor deposit scheme husband can deposit his required money for mohor purpose in future. Overall for this deposit scheme people become more conscious for savings their money for various purposes.

The negative side for this deposit scheme is bank charges higher service charge against this deposit money. Some people have poor faith on bank. Sometimes bank cannot return deposit money to their depositor because bank gives loan to the customer from this deposit money. If any loan taker cannot give back his loan then bank cannot return money to his depositors, that time bank become bankruptcy.

However, On the basis of above line deposit scheme has great impact in our economy. This is the main defining work for the bank.

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Chapter-7

Recommendations

To overcome the negative sides in deposit schemes, Shahjalal Islami Bank needs to do the following works:

Shahjalal Islami Bank needs to do strong publicity. They need to give more advertisement in Television, Radio and needs to give posters in roadside for getting more customer for deposit schemes.

Shahjalal Islami Bank needs to increase his employees experience for deposit schemes. They need to reduce service charge in deposit.

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Reference:

Shahjalal Islami Bank college gate branch. Different brushers of Shahjalal Islami Bank. http://www.shahjalalislamibank.com.bd/ www.jamunabank.com www.southeastbank.com

Acronyms:

SJIBL: Shahjalal Islami Bank.

DS : Deposit Scheme.

MDS: Monthly deposit schemes.

MIS: Monthly Income Schemes.

INDEX:

Compound Interest calculation: T=A(1+R)n

Table: Compound interest calculation in chapter 4. Hajj deposit scheme profit calculation in page no-29 and 30

Others deposit schemes table in page no-16,22,23,24,25,28,33,42,43and45.

Comparative table in page no-44.

Graphycal presentation-45-48.

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