Professional Documents
Culture Documents
Submitted To:
Md. Shajul Islam Lecturer, Dept. Business Administration Stamford University Bangladesh
Submitted By:
Jannatul Ferdus ID No. MBA 201211130 Major: Accounting Department of Business Administration
Letter of Transmittal
August 19, 2011 Professor Md. Shajul Islam Lecturer Dept. Business Administration Stamford University Bangladesh
Acknowledgement
At first, I am highly grateful to almighty Allah, the creator of universe, who has provided me with all kinds of opportunities to complete the internship program and prepare a report. Individual efforts alone can never contribute in totality to a successful completion of any venture. I would have been failed in my duty if I had not stated my gratitude and appreciate to the following individuals who have made valuable contribution to this report. I would like to thanks the all official of standard bank Limited, dakkhin khan branch,Dhaka and also head office branch for their help and support in every aspect of this report. I express my gratitude to Mr. Humayun kobir (AVP & branch in-charge); Joarder elias rahman (senior executive officer & second manager ); Mr.abu nasar(executive officer, credit); Mr. sanjay deb nath (SO); Mrs.shahida sultana(SO, cash); Mrs. Marufa yeasmin (officer) ; Mrs.Nazmun nahar khan chowdhury (officer, cash) ; Md.Sarwar alam (officer, it) & Mr. jamil hasan (ao, cash) for their guidance and kind cooperation. I am very grateful to Mr. Sanjay Deb Nath (Senior officer, Dakkhin Khan branch), and other employees of Standard Bank ltd, Finally, I would like to thank my family for supporting me and giving me courage to carry on my work.
Executive Summary
This report is prepared for the Internship phase of BBA program of Stamford University Bangladesh. This Report focuses three months working experiences in Dakkhin Khan branch, Standard bank limited. This report will give a clear idea about activities and operational strategies of SBL. Especially this report focuses on the Different Investment Function of SBL . The report will provide a clear conception about Investment mechanism of Conventional Bank. This report contains four main parts. The first part of the report is introduction, objective, methodology, scope, limitation of the report. The second part of the report is about an overview of Standard Bank Limited. Standard Bank limited was established in May, 11. 1999 with a clear manifesto of demonstrating the operational meaning of participatory economy, banking and financial activities as an integral part of an Standard Bank code of life. I have also tried to mention some problems regarding SBL on investment, such as the problems of Mudaraba are: lack of govt. support, uncertain cost of capital, and the problems of Musharaka: lack of expertise persons, lack of legal frame work of Islami Banking in Bangladesh. The problem of Ijarah is: disposing the asset, when the asset is no longer being needed, uncertainty about the total life of the asset etc. To avoid the above problems, SBL can follow the following ideas: SBL can diffuse its scope of investment through focusing Shariah concept regarding investment among the bank officers, employers and the clients by strong training; workshop and clients-get together. SBL should initiate different investment modes according to diverse needs of clients by conducting huge research and study etc. So that they can be familiar with the overall Investment mechanism of Standard Limited.
Table of Contents
Part 1: Introduction:
1.01: Introduction . . . . . . . . . . . . . . . . . . . . . 1.02: Origin of the report . 1.03: Objectives of the report 1.05: Limitations of the report
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Part-1 Introduction
Standard Bank Limited (SBL) was incorporated as a Public Limited Company on May 11, 1999 under the Companies Act, 1994 and the Bank achieved satisfactory progress from its commercial operations on June 03, 1999. SBL has introduced several new products on credit and deposit schemes. It also goes for Corporate and Retail Banking etc. The Bank also participated in fund Syndication with other Banks. Through all these myriad activities SBL has created a positive impact in the Market. The first task of bank is to acquire deposits and then to invest those in profitable business. Now in acquiring deposits, bank offers various deposit schemes and new service to its valued customers. To perform these functions simultaneously the bank divides its operations in three parts: General Banking, Investment, and Foreign Exchange. To carry and maintain the work schedule properly and to achieve the ultimate goal all the department of the bank should concentrate deeply and heartily on their assigned activities. Moreover all departments are equally important in a bank. During this internship period, I have tried best to use this opportunity to enrich my knowledge on the assigned topic. After observing thoroughly, I have completed this report on the basis of my finding and observing relating to the topic. The overall report has four main parts without the preparatory part. The introductory part of the report is the current one and the next part covers the SBL in brief. The third part of the report is about the Different Investment modes of SBL in New market Branch by the Investment analysis. Finally, covers the problems, recommendations and conclusion in brief.
1.02: Origin of the report This report is prepared as per internship requirement of my business Administration (BBA) program of Stamford University . I select Standard Bank Limited (SBL) for my internship program. I worked 3 Months in Standard Bank Limited (SBL) Dakkhin Khan Branch. In three months I have through various banking activities. And I have prepared my project paper on different investment modes of SBL as it is assigned by my honorable supervisor or course teacher.
Specific objectives: To know the investment mechanism and product offerings in different modes of SBL. To know overall investment proposal, appraisal procedures, documentation system of SBL. To understand the differences with other banks regarding investments aspects To identify the problems related to investments faced by SBL. To make possible suggestions and recommendations for developing of Standard bank Bangladesh Ltd. 1.04: Methodology of the Report The study requires a systematic procedure from selection of the topic to final report preparation. The report is prepared mainly by using the secondary data and primary data. The data have been collected with help of a formatted questionnaire. a) Primary data Face to Face conversation with the respective officers and staffs. Practical desk work Interviewing officers and staffs. Relevant file study provided by the officers concerned. In-depth study of selected cases. b) Secondary data
Audit Reports Website Relevant books, Research papers, Newspapers and Journals. Internet and various study selected reports.
To be a dynamic leader in the financial market in innovating new products as to the needs of the society. To earn positive economic value addition (EVA) each year to come. To top the list in respect of cost efficiency of all the commercial Banks. To become one of the best financial institutions in Bangladesh economy participating in the most significant segments of business market that we serve.
Core Values
Our Shareholders: By ensuring fair return on their investment through generating stable profit. Our customer: To become most caring bank by providing the most courteous and efficient service in every area of our business.
Our employee: By promoting the well being of the members of the staff. Community: Assuring our socially responsible corporate entity in a tangible manner through close adherence to national policies and objectives.
VISION To be a modern Bank having the object of building a sound national economy and to contribute significantly to the Public Exchequer. MISSION To be the best private commercial bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity. MANAGEMENT Among the living creatures on earth the greatest creation of the Almighty is mankind. Allah has given human being immense power of knowledge, wisdom, intelligence, consciousness and so on. These qualities have made them different from others. By the best use of these qualities in men it has been possible for our world of to day to reach this stage of modern science and technology. Of all existing powers, human resources are the most invaluable productive power in our daily life, in organizational needs and in diversified fields of action towards advancement. So, Human Resources Division of Standard Bank Limited plays a very vital role in formulating policies, developing practices and in achieving its goal by properly utilizing the existing skilled manpower and also hunting best hands through an abstract and absolute recruitment policy in the right dimension. Proper recruitment policy lays the solid foundation for strong erection towards establishment of an institution in initial stage and subsequent stable growth for its consecutive enrichment. The division has been performing this job of recruitment from the very inception of the institution maintaining 100% transparency for free & fair selection under a well-regulated system. Total numbers of 139
1. General Banking: It includes: a. Mobilization of deposits b. Receipts and payment of cash. c. Handling transfer transaction. d. Operations of clearing house e. Maintenance of accounts with Bangladesh bank and other bank. f. Collection of cheques and bill. g. Issue and payment of Demand Draft, telegraphic transfer and payment order. h. Executing customers standing instructions. i. Maintenance of safe deposit lockers. j. Maintenance of internal accounts of the bank. While doing all the above noted work SBL issue cheques-book, Deposit account operating form Ledgers, Cash book, Deposit account ledgers, preparation statement of accounts, Pass book, Balance of different accounts and calculates profits. Standard Bank limited offers to open the following account to the depositors: SBL Current Account. SBL Savings Account. SBL term deposit Account. (3 month / 6 month / 12 month / 36 months term) SBL Special notice Account SBL Special savings (pension) Account (5 year to 10 year term) SBL Savings bond Scheme (5 year & 8 year term) SBL Foreign Currency Deposit Account. SBL Monthly Deposit Account.
DEPOSITS SBL always tried to provide the highest return on the deposits of the customers. The deposits of SBL reached the level of Tk. 2,930.47 crore during 2008 from Tk. 1,921.38 crore of
IMPORT During the year -2008, the import volume of the Bank was USD 504.56 million equivalents to BDT 35,689.24 million. Import volume increased with a growth rate of 36.46% then the previous year. EXPORT During the year 2008, total Export volume of the Bank stood at USD 378.72 million equivalents to BDT 25,072.07 million with compare to previous year export of USD 258.98 equivalents to BDT17,788.41 million which reflects a sound growth of 40.95%. Bank has given emphasis on export of traditional items like jute, jute goods, readymade garments & Leather etc and also on non-traditional items like Tiles, Bi-Cycle, Shrimp, Handicraft, Betelnut etc. Other activities The SBL performs the following task for the welfare of the society: Income generating scheme for the unemployed youth of the nation. Monorom sale center for marketing homemade garments, handicrafts and other items. Education scheme for assisting poor scholar student to case and help them to continue their study. Health scheme for fulfillment of health needs of rural people. Islamic bank hospital was established to extend first hand modern and contemporary medical service to the people on non-profit business. Humanitarian assistance is being provided to the poor, families affected by river erosion and for marriage of poor girls. Energy relief operations are provided to the people affected by natural calamities.
Chairman
Vice Chairmen
Directors
Independent Director
EXECUTIVE COMMITTEE The Executive Committee of the Board consisted of 07 members (Six Directors and the Managing Director). The Committee approves the credit proposal as per approved guidelines and policy of the Board. The EC of the Board also ensures the implementation of policy and guidelines of the Board. There were 07 meetings of the Executive Committee during the year 2008.
Managing Director
Director
Vice Presidents
STRATEGIC BUSINESS OUTLOOK Quality service and thus up-holding the goodwill is the mission and vision of the Bank and thus to achieve the recognition as one of the most reputed Bank focusing clientele all over the country. Keeping that mission and vision in view, last year the O-line Banking has been
Information
Technology,
Hotel-Restaurants,
Under consumer financing, the Bank finances to the individuals for meeting their personal, family and household needs. The Bank has taken up various welfare oriented investment Schemes. The features of the Special Schemes are given here. HOUSEHOLD DURABLES SCHEMES The objective of the Scheme is to increase standard of living and quality of life of the fixed income group by extending them investment facilities to purchase household articles such as furniture like almirah, sofa set, wardrobe, electric and electronic equipment like television, refrigerator, gas cooler, air conditioner, PC, washing machine , electric generator-IPS,UPS,
&
Commitments Credit deposit ratio Percentage of classified loans against total loans and advances Profit after tax and provision Amount of classified loans during the year Provisions kept against classified loan Provision surplus/ (deficit) Total cost of fund Interest earning assets Non-interest earning assets Return on Investment (ROI) Return on Assets (ROA) Incomes from investment Earning per share (Taka) Net income per share (Taka) Price earning ratio (times)
In of the Summery Investment policy & the objective of Standard Bank s not only to aim profit, but to do good and welfare to the people. The bank upholds the concept that money, income and property belong to humanity and this wealth is to be used for the good of the society in general and human being in particular. Investment policy of Standard Bank is difference with other conventional Bank .The bank operate on ideal principles including profit and loss sharing, which is the root of all exploitation and is responsible for large-scale inflation and unemployment. The conditions said down for the validity of business and financial transactions must be fulfilled. The aim of these laws is to make the transfer of goods safe and easy and to facilitate the conclusion of economic transactions between the contracting parties. They also aim to eliminate misunderstanding in all types of contracts. The goal, in the final analysis is to
Part-3
To be a dynamic leader in the financial market in innovating new products as to the needs of the society. To earn positive economic value addition (EVA) each year to come. To top the list in respect of cost efficiency of all the commercial Banks. To become one of the best financial institutions in Bangladesh economy participating in the most significant segments of business market that we serve.
Core Values
Our Shareholders: By ensuring fair return on their investment through generating stable profit. Our customer: To become most caring bank by providing the most courteous and efficient service in every area of our business.
Our employee: By promoting the well being of the members of the staff. Community: Assuring our socially responsible corporate entity in a tangible manner through close adherence to national policies and objectives.
So, banks investment policy, investment planning and investment budgeting, till situation changes / improves, shall aim at promotion of quality general investment.
Current account:
much time in a day he wish but cant withdraw much time he wishes .and from this kind of account he doesnt get any interest. This type of account is suitable for businessman.
deposits money for a shot time period, he can deposit as much time as he wishes but cant withdraw more than two times in a week without permission of bank manager. In this type of account he gets a rate of interest.
deposits an amount for a fixed maturity period and before that he cant withdraw the money with interest. When he open this type of account he is provided no check but a receipt. Sl. 1 2 3 Deposit Products SB A/C STD A/C(Short term deposit) FDR (01 Month but less than 03 Months) FDR (03 Months but less than 06 Months) FDR (06 Months but less than 01 year) FDR (1 Year and above) There are also some other deposit schemes. Such as Rate of Interest 6.00% 5.00% 11.00% 11.00% 11.00% 11.00%
SSSS:
* If any monthly installment remains unpaid for 5 (five) consecutive months, the account will be closed automatically and the account will be settled as detailed below:-
Relationship/ Tenure Less than 1(one) year More than 1 year but less 3 years More than 3 years but less 5 years More than 5 years but less 10 years
Matured value of 3 years and rest as per prevailing interest rate on savings rate Matured value of 5 years and rest as per prevailing interest rate on savings rate.
If failure to pay monthly installment on due dates he/she will pay penalty of Tk. 20/-(Twenty) next subsequent installment. Monthly Installment, Tenure and Maturity Value will be as per following Schedule:Installment / Years 3 Years 5 Years 10 Years
300
500
1000
2000
2500
5000
10000
SRIP: It stands for Standard Bank Regular Income programmed. It provides higher
interest rate. Such as12%-15%..
12,550 20,900 41,800 83,600 1,04,500 2,09,000 4,18,000 22,800 38,000 76,000 1,52,000 1,90,000 3,80,000 7,60,000 58,700 97,800 1,95,600 3,91,200 4,89,000 9,78,000 19,56,000
1. SBL Regular Income Program is an income program, which helps you to earn a monthly fixed amount on your deposits at SBL for period of 3 years. 2. Deposit of Tk. 50,000/- (Fifty Thousand) and multiples thereof but maximum limit of Tk. 25,00,000/- (Taka Twenty Five Lac) at a time and depositor will earn 36 equal monthly
50,000 500
have to deposit 5000 tk. per month up to 6 year. After maturity he gets back 5.20
1. Anybody can open this scheme by Deposited Tk.5,000/-(five thousand) only per Month. 2. The tenure of the scheme is 6 (six) years. 3. After Six Years Depositor will get Tk. 5,20,000/-. 4. If failure to pay monthly installment on due dates he/she will pay penalty of Tk. 20/-(twenty) on next subsequent installment. 5. In case of premature close of the account the account holder will get savings rate interest but not interest less than 6 (six) months. 6. If 4 (four) consecutive monthly installment unpaid the account will be closed automatically.
10 Lace Scheme:
have to deposit 4500 tk per month to 10 year. After maturity he gets back laces
1. Anybody can open this scheme by deposited Tk. 4,500/- (four thousand five hundred) only per month. 2. This scheme tenure 10 (Ten) years. 3. After 10 (Ten) years depositor will get Tk. 10,00,000/. 4. If failure to pay monthly installment on due dates he/she will pay penalty of Tk. 20/- (twenty) next subsequent installment. 5. In case of premature close of the account the account holder will get saving rate interest but not interest less than 6 (six) months. 6. If 4 (four) consecutive monthly installment unpaid the account will be closed automatically.
DI+:
it stands for Double Income plus. In this scheme depositor will deposit a
specific amount at a time and after 5 years he will get the double. At present all this schemes are closed because Govt. has fixed new interest rate. So those clients who opened these account at that time there are getting benefit butno one can open such account.
1. Deposit of Tk. 10,000/- (Ten Thousand) and multiples thereof but maximum limit of Tk. 25, 00,000/- (Taka Twenty Five Lac) at a time will be acceptable under the program.
If the accounts/deposits are closed/en-cashed after 1 (one) year of its opening interest shall be allowed on the deposit at prevailing FDR Interest Rate.
6. The instrument will be acceptable as collateral security against any investment subject to registering lien with the issuing Branch. 7. In case of instrument get lost, the procedure for the issuance of a duplicate receipt will be the same as applicable in case of loss of FDR.
2. In case of premature closing of the account minimum after 1 (one) year completion, the account holder will get Saving Rate of Interest only. But no interest will be paid before 1 (one) year completion of continued payment. 3. In case of premature close of the account the account holder will get savings rate interest but not interest less than 6 (six) months. 4. If any client fails to pay monthly installment on due dates in maximum 4 (four) months he/she
2. In case of premature closing of the account minimum after 1 (one) year completion, the account holder will get Saving Rate of Interest only. But no interest will be paid before 1 (one) year completion of continued payment. 3. In case of premature close of the account the account holder will get savings rate interest but not interest less than 6 (six) months. 4. If any client fails to pay monthly installment on due dates in maximum 4 (four) months he/she will pay penalty of Tk. 20/- (Twenty) per month to the next subsequent installment. 5. If any client fails to pay 4 (four) consecutive monthly installments the account will be closed automatically.
Loan Schemes:
The Standard Bank is offering the following loan and advance product to the client for financing different purpose that fulfill the requirements of the bank and have good return to the investment as well as satisfy the client.
b) Term loans:
c) Consumption loans:
Though normally banks provide loans for productive purposes only but as an exception loans are also granted on a limited scale to meet the medical needs or the educational expenses or expenses relating t o marriage and other social ceremonies etc. of the needy persons, such loans are called consumption loans.
d) Hire-purchase advances:
Under this arrangement, conventional banks grant advances to its clients engaged in hire-purchase business relating to transports, refrigerators, and televisions, for example. This type of financing is usually repaid with instalments including principal and interest. The bank generally requires immovable property as collateral against this type of financing.
e) Bills purchased/discounted:
Export-Import businesses are performed through opening of L/Cs with Bank. The client, while opening the L/C, comes to an agreement with the bank that the latter will repay the bill received on the farmer's behalf on a certain date onward in exchange for a specific rate of interest determined at the time of
1.00% additional interest rate will be charged for default in payment/ adjustment. All other charges, commissions and fees shall remain unchanged.
-(vi) SOD against share certificate (vii) SOD against work order/ other banks FDRs/ ICB unit certificate/ Wage Earners Development Bonds (viii) SOD General (ix) Consumer Credit Scheme (x) SME Finance (xi) Woman Entrepreneurs (xii) Loan Others (Not defined above) ---10.00% ---
14.00% 14.00%
1.00% additional interest rate will be charged for default in payment/ adjustment. All other charges, commissions and fees shall remain unchanged.
Investment function of SBL Fees & Charges for VISA Credit Card (Classic Card) of Standard Bank Ltd.
FEES AND CHARGES OF SBL VISA CREDIT CARD (Classic Card) PARTICULARS OF PAYMENT ANNUAL/RENEWAL FEE REPLACEMENT FEE SUPPLEMENTARY CARD FEE LATE PAYMENT FEE STATEMENT RETRIVAL FEE CHARGE SLIP RETRIVAL FEE PIN REISSUE FEEE CASH ADVANCE FEE FROM ATM CASH ADVANCE FEE FROM BRANCH CASH ADVANCE LIMIT INTEREST ON CASH ADVANCE CLASSIC LOCAL CLASSIC INT'L CLASSIC DUAL (TK) 600 300 FREE 200 50 200 500 ($) 10 4 FREE 3 1 3 7 ($) 12 5 FREE 4 2 4 8
TK.100 OR 2% OF WITHDRAWAL AMOUNT,WHICH EVER IS HIGHER TK.100 OR 2% OF WITHDRAWAL AMOUNT,WHICH EVER IS HIGHER 50% OF THE TOTAL CARD LIMIT 2.5% PER MONTH
SPECIAL NOTE:
1. FOR OUR OWN EMPLOYEES AND OTHER BANKERS, ANNUAL/RENEWAL FEE IS 50% OF THE PRESCRIBED AMOUNT. 2. FOR OUR OWN EMPLOYEES, LIMIT IS TWICE OF NET SALARY. 3. FOR CLIENTS, LIMIT DEPENDS ON BRANCH MANAGER'S RECOMMANDATION AND CREDIT COMMITTEE'S ASSESSMENT.
Fees & Charges for VISA Credit Card ( Gold Card ) of Standard Bank Ltd.
FEES AND CHARGES OF SBL VISA CREDIT CARD (Gold Card) PARTICULARS OF PAYMENT ANNUAL/RENEWAL FEE REPLACEMENT FEE SUPPLEMENTARY CARD FEE LATE PAYMENT FEE STATEMENT RETRIVAL FEE CHARGE SLIP RETRIVAL FEE PIN REISSUE FEEE CASH ADVANCE FEE FROM ATM CASH ADVANCE FEE FROM BRANCH CASH ADVANCE LIMIT INTEREST ON CASH ADVANCE GOLD LOCAL (TK) 1500 300 FREE 300 50 GOLD INT'L ($) 20 4 FREE 4 1 GOLD DUAL ($) 22 5 FREE 5 2
250 500
4 8
5 9
TK.100 OR 2% OF WITHDRAWAL AMOUNT,WHICH EVER IS HIGHER TK.100 OR 2% OF WITHDRAWAL AMOUNT,WHICH EVER IS HIGHER 50% OF THE TOTAL CARD LIMIT 2.5% PER MONTH
Definition Bai-Murabaha may be defined as a contract between a buyer and a seller under which the seller sells certain specific goods (permissible under Islamic Shariah and the Law of the land), to the buyer at a cost plus agreed profit payable in cash or on any fixed future date in lump-sum or by installments. The profit marked-up may be fixed in lump-sum or in percentage of the cost price of the goods.
Types of Murabaha In respect of dealing parties Bai-Murabaha may be of two types. Ordinary Bai-Murabaha
IV. Bai-Istishna
Meaning The word Istishna has been derived from the word Istishna which means industry or Manufacturing enterprise. Istishna means to goods manufactured by placing orders to a manufacturer. Definition Istishna'a is a contract between a manufacturer/seller and a buyer under which the manufacturer/seller sells specific product(s) after having manufactured, permissible under Islamic Shariah and Law of the Country after having manufactured at an agreed price payable in advance or by installments within a fixed period or on/within a fixed future date on the basis of the order placed by the buyer.
experience.
II. Musharaka(partnership)
The term Shirkat and Musharakah have been derived from Arabic words Shairkah and Sharika. The word shirkah means a partnership between more than one partners. Thus the ward Musharaka and Shirkat means a partnership established between two or more partners for purpose of a commercial venture participate both in the capital and management where the profit may be shared between the partners as per agreed upon ratio and the loss. If any incurred, is to be borne by the partners at per capital /equity ratio. In case of investment Musharaka meaning a partnership between the bank and the client for a particular business in which both the bank and client provide capital at an agreed upon ratio and bear the loss, if any in proportion to their respective equity. Bank may move itself with the selected client for conducting any Shariah permissible business under Musharaka mode. Important Features: The investment client will normally run manage the business. The bank shall take part in the policy and decision making as well as overseeing
(supervision and monitoring) the operations of the business of the client. The bank may appoint suitable personal(s) to run manage the business and to maintain books of accounts of the business property. As the investment client shall manage the enterprise, the bank may more share of profit to him than that of his proportion capital contribution. Loss, if any, shall be shared on the basis of capital ratio.
The term Ijarah has been derived from the Arabic works Ajr and Ujrat which means consideration, return, wages or rent. This is really the exchange value or consideration, return, wages, rent of service of an Asset. Ijarah has been defined as a contract between two parties, the Hiree and Hirer where the Hirer enjoys or reaps a specific service on benefit against a specified consideration or rent from the asset owned by the Hiree. It is a hire agreement under which a certain asset is hired out by the Hiree to a Hirer against fixed rent or rentals for a specified period. Elements of Ijarah There are three general and six detailed elements of Ijarah: 1. The wording: This includes offer and acceptance 2. Contracting parties: This includes a the owner of the property and the party that benefits from the use of the property. 3. Subject matter of the contract: This includes the rent and the benefit.
Important Features 1. In case of Hire Purchase under Shirkatul Melk transaction the asset/property involved is jointly purchased by the bank and the client with specified equity participation under a Shirkatul Melk contract in which the amount of equity and share in ownership of the asset of each partner (bank and client) are clearly mentioned. Under this agreement the bank and the client become co-owners of the asset under transaction in proportion to their respective equity. 2. In Hire Purchase under Shirkatul Melk Agreement the exact ownership of both the bank and lessee client must be recognized. However, if the partners wish and agree the asset purchased may be registered in the name of any one of them or in the name of any third party clearly mentioning the same in the Hire Purchase Shirkatul Melk Agreement. 3. The share/part of the purchased asset owned by the bank is put at the disposal possession of the clients keeping the ownership with him for a fixed period under a hire agreement in which the amount of rent per unit of time and the benefit for which rent to be paid along with all other agreed upon stipulations are clearly stated. Under this agreement the client becomes the owner of the benefit of the asset, in accordance with the specific provisions of the contract that entitles the bank the rentals.
Objectives To assist the service holders with limited income in purchasing household durables. To assist the fixed income group in raising the standard of living. To create opportunity for the service holders to enjoy the benefit of modern and sophisticated living and at the time lead a decent and honest life.
Objectives To provide investment facilities for establishment of chambers, clinics, pharmacies and procurement of medical equipment by the unemployed medical graduates and thus to provide self- employment. To assist newly passed unemployed medical graduates to establish clinics by way of formation of groups by 5 doctors.
To assist experienced and established physicians to procure improved and modern medical equipment and thus to improve the standard and techniques of treatment. To assist specialists and consultant physicians to procure specialised medical equipment for extending improved treatment to the people.
Objectives The main objectives of the Scheme are: To extend investment facilities to agricultural, other farming and off-farming activities in the rural areas. To finance self-employment and income generating activities of the rural people, particularly the rural unemployed youths and the rural poor. To alleviate rural poverty through integrated rural development approach.
Objectives
(Figures in
2005 1106.47 782.09 64.42 2947.38 27.75 629.81 10.21 12.53 609.78 5859.75 12050.19
2006 2242.22 699.95 33.38 2698.88 23.54 768.45 6.24 11.94 506.75 6582.85 13574.20
2007 2884.66 742.80 23.64 2624.24 31.46 876.34 35.79 13.61 485.29 6903.09 14620.92
2008 3011.72 638.40 15.34 3087.55 41.16 1104.65 31.50 27.21 429.24 7183.26 15570.03
Induction of client:
Hole preliminary discussion with the prospective client regarding his investment needs, business experience, viability of the project and Shariah permissibility of the asset the business and the uses of the asset. Brief him on the salient features of Hire Purchase under Shirkatul Milk mode of Investment. Apprise, in particular, the usual terms and conditions under which the Bank made such investment. Discuss about Clients equity participation and its immediate availability. Look to the past performance of the Client, Check-up Head Office Current Investment Policy and Branchs track record of Hire purchase under Shirdatul Melk Investment of the item(s).
Categorization:
Categories the proposal as under: Hire Purchase under Shirkatul Melk Commercial: Investment on hire purchase under Shirkatul under Shirkatul Melk Commercial. Hire Purchase under Shirkatul Melk Industrial: Hire Purchase under Shirkatul Melk investment to industrial undertaking in the form Melk mode to individual
Hire Purchase under Shirkatul Melk Transport: Hire Purchase under Shirkatul Melk Industrial in the form of transport Bus, truck, car, taxi, lunch, steamer, cargo vessel, air transport etc. shall be termed as Hire Purchase under Shirkatul Melk transport. Hire Purchase under Shirkatul Melk Real Estate: Hire Purchase under Shirkatul Melk Industrial in the form of land building, market, apartments, for use /rental shall be termed as Hire Purchase under Shirkatul Melk Real Estate. Processing and Appraisal: Enter the Application in the Investment Proposal Received and Disposal Register(B53) and allot a Serial Number to it. Examine shariah permissibility of the goods. Reject the proposal outright, if not permitted by Islamic Shariah. Check-up Credit Restriction Schedule of Bangladesh Bank and Head Office Current Investment Policy Guidelines.
Sanction: On completion of Appraisal as provided herein above, of the Proposal is found viable, issue Sanction Advice (F-188) if it is within the business power of the Branch mentioning all the terms and condition is duplicate to the Client and endorse copies to Zonal and Head Offices retaining one copy in the Clients file duly accepted by the Client. If the proposal is not within the Discretionary Power of the Branch, the Branch shall with Appraisal Report on F-167A and F-167B to Zonal Office/Head Office.
Documentation: Before purchasing the asset/property by the Bank, obtain sufficient collateral securities as mentioned in the sanction advice along with the following charge documents properly
If the investment is made collaterally secured by Mortgage of property, obtain the following documents: In case equitable mortgage, Memorandum of Deposit of Title Deep (MDTD) signed by the owner of the property. In case of Legal Mortgage, Registered Mortgage Deed should be obtained. Personal Guarantee of the owners of the property on. Original Title Deeds with CS, RS, SA, Mutation Parcha, DCR of the property and Mutation record. Up-to-date Rent Receipt. Non-encumbrance Certificate along with Search Fee Paid Receipt of the concerned Registry/Sub-Registry office. Site plan (Map/Naksha) of the Mortgaged property.
In case the investment Collaterally/ Additionally secured by Pledge of Shares of reputed Public Limited Company on Banks approved list and quoted in the Stock Exchange, the following additional documents are to be obtained:
Agreement for Pledge of share along with original share certificates (No share in the name of minor shall be accepted as security). Blank Share Transfer Deed in Duplicate on copy signed, dated and another copy signed and undated. Share Delivery letter addressed to the Bank. Letter to the concerned Company to register Line in Banks favor. This notice shall be sent be registered acknowledgement due post (registered A/D post) and confirmation of recording the Line shall be obtained from the concerned company. Letter of authority in Banks favor duly signed by the shareholder to collect dividend /Bonus on his behalf on the share pledged to the Band. In case of Investment to partnership Firms, obtain the following Document: a. Copy of partnership deed signed by all partners. b. Copy of partnership deed duly attested by a 1st Class Gazetted officer with the original copy and attested by the incumbent-in-charge of the Branch.
In case of investment to Private or public Limited Company, obtain the following additional document: Obtain certified copy of the Memorandum and Articles of Association of the company to ensure that the company has necessary power to borrow/avail investment from any Bank. Resolution of the board Directors of the Company to avail Investment/Facility/Borrow, Do Business with SBL and authorizing the office bearers to execute necessary Documents. Personal Guarantee of the Directors of the Company. If the investment is allowed on Hypothecation of assets, in addition to other charge documents, 1st charge under relevant section of the Companys Act-1994 shall be created in Banks favor in respect of Companys assets prescribed as security. This charge shall be created with the registrar of Joint Stock Companies within 21 days from the date of execution of relative Change Documents. Certificate issued by the registrar of Joint Stock Companies under section 114 of The Companies Act-1994 in respect of creation of charges.
Some general instruction: The concerned department of head office, from time to time will supply rates stamp duty on various types of document. The incumbent in charge/-authorized official in pencil should verify signature of the client on document.
These two components add-up to the banks cost. Administrative cost staff salary). Cost of capital = Return on capital or the Rate of Return investors = Administrative cost (godowon rent, transport cost and godowon
General problems:
The decoration of the branches is older than other commercial banks. They dont use the Share Mode of investment. Absence of Islamic Money Market. State law defers with Islamic Shariah Absence of Islamic Economic system in Bangladesh. In the money market of Bangladesh, there is no easy provision to take short time loan from the bank.
1. SBL cannot invest in Shariah prohibited sector, so its investment scope is narrow in Bangladesh. 2. SBL lead their investment operation within limited number of investment mode. 3. Entrepreneurs have no clear concept about Shariah and investment mode. As a result they do not want to take investment easily. 4. Lack of Islamic Banking rule in our country, the authority of SBL faces various problems in their investment operation as a result it cannot run smoothly. 5. SBL is shariah based & welfare oriented, so they should engage in poverty alleviation & rural development seriously, but they could not reach their idle, as a result, profit is not increasing.
Despite tremendous popular support spectacular success in terms of mobilization of deposit and distribution of profit Islamic banking in Bangladesh yet to achieve the desired level of success due to the absence of appropriate legal framework for carrying out Islamic Banking operations in the country. All the government- approved securities in Bangladesh are interest bearing; Besides, Islamic Money Market in Bangladesh is yet to develop. As a result the Islamic banks, which are committed to avoid interest, cannot invest the permissible part of their Statutory Liquidity Reserve and short Term Liquidity in those securities. SBL is experiencing different problems including the investment program under the Islamic Shariah. Due to this, it is yet to conduct the some schemes which are agreed with the Islamic law and some of the schemes has already been closed and which are under operations are not out of flows. The following section highlights the major findings of the problem that are associated with the investment program of SBL.
4.02: Recommendation
Keeping in view the above mentioned facts an attempt has been made in this report, the following recommendation are given as to how SBL would be able to overcome its existing weakness and make SBL more successful in Bangladesh SBL should encourage potential customers, so that they be engaged in bring forth Halal Products by dint of Halal device, thus they can inspire their investment scope. SBL can create new investment mode to increase their investment mode by huge research & study.
In every branch must have women interpreter, who will deal with women customer and understand them about their activities. SBL can develop the skillness of the manpower by increasing their varieties kinds of training facility on such as Computer Course, English & Arabic Language Course, Business ethics, morality, organization behaviour, related topics of General Banking, Investment & Foreign Exchange etc. SBL have to conscious about their advertisement (even giving a permanent timing calendar of `Namaz and Roza' with adding a brief glance of Islamic Banking Operation to every Mosque in our country) so that it can reach its marketing activities in `Urban', `Sub Urban', `Rural', even up to hidden village.
SBL can diffuse its scope of investment through focusing Shariah concept regarding investment among the Bank officers; employer and the Clients by strong training, workshops and Clients get - together.
The authority of SBL should pressure on Government bodies to run proper and sufficient application of Islamic banking law in Bangladesh.
Practice amount of doubtful income declined substantially during the year as compared to the past few years, indicating more carefulness of the Management in complying with Shariah. As a result, idle money will be invested to increase potential profit of this Bank.
Inclusion of more subjects based on the Quran and Sunnah in the Training courses of the Islami Bank Training & Research Academy in order to develop human resources having morally.
4.03: Conclusion
Most of the people in our country have a bad impression about SBLs operations regarding proper managing in accounting and we dont have arranging information in DSE and CSE, So public is not interest about our bank because they think investment with us will bring them difficulties and it is uncertain to return their capital. But I must confess that they might have some problems in expressing information but we are regular punctual and cooperative and effective with our banking system. We have several investment modes, deposit schemes and loan function that can hardly any conventional and Islamic bank offer. Moreover we are offering Islamic banking system which means no difference between investments of SBL loan/credit/advance of conventional banks for this reason. They are not too much interested to investment with SBL because majority of our people have no proper knowledge about the activities of Islami banking as well as its investment mechanism. They dont know mark up is accepted Islamic Shariah. The bank is committed to run its all activities as per Islamic Shariah. SBL through its steady progress and continuous success has, by how, earned the reputation of being one of the leading private sector banks of the country. The bank has shown steady progress in this important sector. Main items of import (by the help of SBL) machinery, garments, fabrics and accessories, ships for scrapping, rice, pharmaceuticals etc. whereas main items of exports are jute goods, readymade garments, leather, frozen fish, fertilizer etc. SBLs capital adequacy, deposits, reserves, earning per share, export, import and remittances are increasing day by day. So, no doubt SBL is a growing profitable financial institute and its strengths are high.
Bibliography
1. Introduction to Standard Bank Limited. - Published by SBL. 2. Annual Report of SBL, 2012. 3. www.standardbank.com.bd
4. Interview with Mr.. Sanjay Deb Nath (Sr. ofiicer) 5. All officials of SBL, Dakkhin khan br. Uttara, Dhaka. 6. Office documents of SBL. 7. Office publications of SBL.
Published by SBL.