Foreign Exchange & Foreign Trade in Al-Arafah Islami Bank Limited

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“Foreign Exchange & Foreign Trade in Al-Arafah Islami Bank Limited

1. Introduction

This internship was to my job exposure and provided me with learning experience and knowledge in several areas. I was not only learned about the activities and operations of correspondent Bank, but also gathered some knowledge about the basic business of the banking in first one month for the purpose to build up my career.

It is possible to gather theoretical knowledge passing through books but it is insufficient to acquire practical experience. We collect data to know about unknown factors, we can have accurate knowledge about the factors by analyzing data.

As a student of finance department in Asian University of Bangladesh, I have earned theoretical knowledge, which is not exactly same with the practical business environment. The company internship program applied by the faculty of Business study helps us to have practical experience and it’s reporting also.

Through this internship program, I come to know about the organization structure, problems, prospects and operational procedures of AL-ARAFAH ISLAMI Bank Ltd. So, it is impossible to deny the importance of internship of program.

2. Origin of the report

The report entitled “General Banking, Investment and foreign Exchange Operation of Al-Arafah Islami Bank Limited what has been prepared for the completion of the M.B.A of the Dept. of Business, Asian University of Bangladesh.

3. Objectives of the report

The objective of practical orientation is to familiarize with the practical Market and to familiarize with the practical market and to compare it with the Business theories that we have learnt.

The main objectives of the practical orientation are as follow:

· To familiarize with practical job environment.

· To have and exposure on the financial institution such as banking environment of Bangladesh.

· To gain experience on different functions of the different department of the Bank.

· To observe Banker- customer relationship.

· To relate the theories of Banking with the practical Banking.

· To examine the profitability and productivity of the Bank.

4. Methodology

Using both of the two sources – primary and secondary has collected data.

The primary sources of data:

· Face to face conversation with the Bank officers and staffs.

· Direct conversation with the clients.

· File study of different sections.

· Deskwork: during my practical orientation I worked in head officer and Joydebpur Chowrata Branch Gazipur.

· In head officer I worked in foreign and credit division. In Joydebpur Chowrasta Branch I worked in the Section.

The secondary sources of data:

· Annual Report of AL-ARAFAH ISLAMI Bank Ltd.

· Deferent paper of AL-ARAFAH ISLAMI Bank.

· Unpublished data received from the head office and branch.

· Different text books.

I tried my best to discuss my subject in analytical way. I also have represented some graphs and tables, which show performance of AL-ARAFAH ISLAMI Bank Ltd. Based on financial data. To collect necessary information I used questionnaire method. I have given some recommendations to solve the problems of AL-ARAFAH ISLAMI Bank Ltd. As per my own thought.

5. Scope

The reports cover the Banking service to the customers especially the customer service of AL-ARAFAH ISLAMI Bank Ltd. This report has been prepared though extensive discussion with Bank employees and also with the customers.

The study was kept Ltd. To the head office and Joydebpur Chowrasta Branch of AL-ARAFAH ISLAMI Bank. This Bank Deal with all type of general Banking operations foreign exchange and credit operations according to the rules and regulations provided by the Bangladesh Bank as well as according to Islami Sharih.

6. Limitations

· The main constraint of the study was shortage of time.

· The constraint of the study was insufficiency of information, which is highly required for the study. AL-ARAFAH ISLAMI Bank is a new unable to provide some formatted documents and publications for the study.

· Since the Bank personnel were very busy, they failed to given me enough time to complete the report.

· The clients were very busy, so they were unable to give me much time for interview.

· I carried out such a study for the first time. So, inexperience is one of the main factors that constituted the limitation of the study.

It is also a limitation that only 100 client’s opinion takes as a sample of whole Bank, which may not represent the overall of real condition of the Bank.

7. A Brief idea about The Al-Arafah Islami Bank Ltd

(Including organizational structure)

A. Historical background of the AL-ARAFAH ISLAMI Bank.

B. Slogan of the AL-ARAFAH ISLAMI Bank.

C. Key function of the AL-ARAFAH ISLAMI Bank.

A. Historical background of Al-Arafah Islami Bank:

AL-ARAFAH ISLAMI Bank- Ltd. Was named at first as ARAFAH ISLAMI Bank. This new Islami commercial Bank started some new innovative vision for customer service in modern era. It was incorporated with Bangladesh Bank on dated 18.06.1995. The Bank received the certificate of incorporate no. pp65-71/95 under the commitment of the business on the same day by the section 1580(2) under the companies act. Apart from the head office in Dilkusha C/A, it stared its first local branch in Motijheel C/A simultaneously in order to provide all kinds of banking support to the clients. On September 27, 1995 the second branches both in Dhaka city and other cities.

B. Slogan of The Al-Arafah Islami Bank:

“Local Bank Global Network” The World AL-ARAFAH ISLAMI Bank implies the meaning of its operation. Through it is a new type of Bank in Bangladesh; it is familiar with so many countries in the world such as Export Import Bank of United states, Export Import Bank of Japan. Despite it is a local Banking. To achieve the desire goal, it has intention to pursuit of excellence at stages with acclimate of continuous improvement. Because it believes, the line of excellence is never ending.

C. Key Function of the Al-Arafah Islami Bank:

Like other commercial Banks AL-ARAFAH ISLAMI Bank performs all traditional Banking business including introduction of a wide range of caving and credit products, rattail Banking and professional management. But the AL-ARAFAH ISLAMI Bank Ltd, emphasize its functions in export and import trade handling and financing of export oriented industrious and reduces in the balance in the balance of payment of the country. Its also have to maintain Islami Sharih.

11.1 Board of Directors

DirectorMr. Al-Hajj Kazi Md. Mofizur Raham		DirectorAl-Hajj Dr. D. M. Amanul Haque
DirectorMr. Al-Hajj Mir Ahmed Sowdagar		DirectorAl-Hajj Abdul Malek Mollah
DirectorAl-Hajj A.Z.M.Shamsul Alam		DirectorAl-Hajj Mohammad Haroon
DirectorAl-Hajj Mr. Harun –ar- Rashid Khan		DirectorMr. Md. Abdullah Al Zahir Shapan
DirectorAl-Hajj Mr. Nazmul Ahsan Khaked		DirectorAl-Hajj Badsha Meah
DirectorDr. Bahauddin Mohammad Yousuf

Managing Director

M.A Samad Sheikh

Company Secretary

11.2 List of Executive & Officers of Joydebpur Chowrasta Branch.

SL	Name of the Officials	Designations
1	Md. Nasim Ahmed kamal	P.O & Manager
2	Md. Mohiuddin Sharifi	S.O
3	Md. Mafozul Haque	Officer
4	Md. Abdul Latif	Officer
5	Md. Mozahid Hossain	Officer
6	Md. Neamatul Islam	Officer
7	Md. Kalilur Rahman	Officer
8	Md. Abdur Razzak	Junior Officer
9	Md. Mossarof Hossain	Junior Officer
10	Md. Abdul Hakim	Junior Officer
11	Md. Atiqur Rahman ( Monshi )	Junior Officer
12	Md. Lalon Sheik	Junior Officer
13	Md. Jabed Morshed	Asst. Officer
14	Md. Humayon Kabir Talukder	Asst. Officer
15	Abu Ahmed	M.C.G-2
16	Md. Tanzid	Driver
17	Md. Habibulla	G.G
18	Md. Habibur Rahman	Tea boy

9. Customers Service and Automation:

“To err is human and forgiveness divine” is a proverb, the Bank believes, the customers will not accept, because for a service they pay for, they want it 100% defect free. So, improvement of the customer service should always be their motto. Altered expectoration of the customers has shifted the focus from resource base productivity to value base productivity.

To operate in the globalize environment, the Bank’s future plan is to equity all the units if the Bank with modern technology, they already started Telex, Fax, E- mail, On-line and Computer network. For the service of its customers round the clock, it is thinking now installing ATM at suitable place in Dhaka and others important cities in the country.

10. Other Operations:

· The Bank does all traditional commercial Banking business including Islamic Banking service in Selective branches.

· Deposits, which are the lifeblood of the bank, are amount other.

· In capital market operations, it is engaged in share and securities business, Mutual fund management and brokerage house activities.

· Bank is poised to extend LC correspondent relation and nostril accounts with leading Banks all over the world.

11. Identity of Al-Arafah Islami Bank Ltd. In A Short:

Registered name Al-Arafah Islami Bank Ltd.

Registered Head Office Peoples Tower

6-10 floor

36 Dilkusha C/A , Motijheel

Dhaka -1000

Phone- 723255-7, 9568007, 9569353

Telex: 642527 AL-ARAFAH ISLAMIHO BJ

Fax: 880-2-9569353

Email: Al-Arafah @bangla.net

SWIFT

Date of incorporation June 18,1995

Inauguration of first branch September 27, 1995

Authorized capital 250.00 crore

Paid up capital 85.42 crore

Reserve 59.97

12. General Banking

A. Introduction

B. Accounts opening section

C. Cash section

D. Deposit section

E. Remittance section

F. Accounts section

A. Introduction:

The general Banking Department doses the most important and basic of the Banks. All other departments are liked with this departments are liked with this department. It also plays a vital role in deposit mobilization of the branch. AL-ARAFAH ISLAMI Bank Provides different types of accounts locker facilities and special types of saving Scheme under General Banking. For proper function and excellent customer services this department is divided into various sections namely as follow:

· Accounts opening sections

· Cash sections.

· Deposit sections.

· Bill and clearing sections.

· FDR sections.

· Accounting sections.

B. Accounts Opening Section

This section deals with opening of different types of accounts. It is also deals with issuing of books and different deposit books to the different accounts openers. A customer can open different types of accounts through this department such as:

· Al-Wadia Current account.

· Mudaraba Saving Account.

· Mudaraba Short Notice Accuont.

· Mudaraba Monthly Installment term Deposit.

· Mudaraba Monthly saving Scheme .

· Mudaraba Double benefit Scheme.

· Mudaraba Kotopati deposit Scheme.

· Mudaraba Millionaire deposit Scheme.

· Mudaraba pension Scheme.

· Mudaraba lakha pathy deposit Scheme.

· Foreign currency Deposit Scheme.

· Al-Arafah Saving Bond.

· Cash wakaf deposit Scheme.

· Al- Arafah monthly Hajj deposit.

Requirements of opening an account:

There are some requirements that have to be completed for opening an Account.

Current Account:

Current Account is an account where the account holders can make numerous transactions with in a working day. There is no restriction on the number and the amount of with drawls from the current within availability of funds.

As the Banker is under the obligation to repay this deposit on demand on interest is paid in this account. Generally, current Account is opened for Business and trades for easy transaction. But a person can open CD Account for special purpose. Requirement for the different types of Accounts holders are discussed.

i. Proprietorship firm:

There is a different account opening from for the proprietorship firm by the AL-ARAFAH ISLAMI Bank Ltd. For this account, a customer must need to submit the papers with the from:

· Photograph.

· Signature and Rubber- stamp seal of the client.

· And introducer of AL-ARAFAH ISLAMI Bank Ltd. Introducer must be account holder.

· Chairmen certificate of the proprietor.

· Trade license.

· Voter ID Card

Current deposit account is opened with neither a sum of nor less than 1000. The introducer must attest photographs.

ii. Partnership firm:

There is a different account opening from for the proprietorship firm. Interaction for running an account is giving in this.

The following documents are required to open this type of accounts.

· Photograph.

· Signature and Rubber-stamp seal of the service receiver.

· Chairman certificate of the partners.

· And introducer of AL-ARAFAH ISLAMI Ltd. Introducer must be CD Account holder.

· Trade license.

· Partnership deed registered by Notary public.

· Partnership letter along with address and signature.

· Voter ID Card

Current deposit Account is opened with neither a sum of nor less than Tk. 2000. The photographs must attested by the introducer.

iii. Limited company:

A separate account from is used for limited company. There are two kinds of limited company – public company and private limited company. The Bank always takes precautions for opening this type of accounts. Several documents are submitted by the clients, which should be checked carefully by the Bank to be legally in a safe position. Requirements to open an account are as follows:

iii. a. Private limited company:

· Photograph.

· Signature and Rubber- stamp of the client.

· Chairman certificate of the owner.

· An introducer of AL-ARAFAH ISLAMI Bank of Bangladesh Ltd. Introducer must be CD account holder.

· Trade license

· Certified copy of memorandum and articles of association.

· Incorporation Certificate.

· Membership Certificate.

· Memorandum.

iii. b. Public limited company:

· Photograph.

· Signature and Rubber- stump seal of the client.

· Chairman certificate of the directors.

· An introducer of AL-ARAFAH ISLAMI Bank Ltd. Introducer must be CD account holder.

· Trade license.

· Certificate of Incorporation.

· Certificate copy of memorandum and articles of association.

· List of directors as per return of joint stock Company with signature.

· Certificate of commencement of business.

iv. Club society:

The following document duly completed shall be obtained from the customer at the time of current deposit account of Association/Club/Charity/Trust/Society etc.

· Photograph.

· Signature and Rubber-stamp seal of the client.

· An introducer of AL-ARAFAH ISLAMI Bank Ltd. Introducer must be CD account holder.

· Chairman certificate of the client.

· Certified true copy of constitution/By-laws/Trust deed/Memorandum and articles of association.

· Certified of registration of the association/Club/Charity/Trust/Society (For inspection and returned only certified.)

· List of members of the Governing body/Executive committee of the Association /Club/Charity/Trust/Society with their address.

· Exact of resolution of the Association/Club/Charity/Trust/Society for opening the account and authorization for its operation duly certified by the chairman sectary of the Association/Club/Charity / Trust/ Society. Etc.

V. Saving Account (individual/joint):

Saving account (SB) is meant for the people of the lower and middle classes who wish to save part of their income to meet future needs and intended to earn an income from their saving. For opening of this type of accounts the following requirements are necessary:

· Photographs attested by the introducer.

· Chairman certificate of the account holder.

· An introducer of AL-ARAFAH ISLAMI Bank Ltd. Introducer must be CD account holder.

For joint of saving deposit and short-term deposit (STD) are as follows.

SL. NO	Name of Account	Interest rate
1	Saving Deposit	6%
2	Short term Deposit(SND)	4%

vi. Monthly Saving Scheme (MSS):

It is project of AL-ARAFAH ISLAMI Bank, which is a Scheme like DPS. The slogan of this Scheme is “securing your future with case. A small saving to day will provide you comfort tomorrow.”

vii. Saving period and monthly installment rate:

The saving period is for5, 8, 10, or 12 years. Monthly installment rate is Tk. 500, Tk. 2000, or Tk. 5000.

viii. Monthly installment deposit:

· The saving amount is to be deposit with in the 10^th of every month. In case of holidays the deposit amount is to be made on the following date.

· The deposits may also be made in advance.

· The depositor instruction can be giving to transfer the monthly deposit in the Scheme’s account.

· In case the deposit falls to make the monthly installment in time there will be no charge added with the following month’s installment.

ix. Withdrawal

· Generally, withdrawal is not advised before a five- year term, but if it is withdrawn before the above term, then interest will be paid saving rate. However, no interest will be paid if the deposit is withdrawn within one year of opening the account.

· Incase the depositor to withdraw between the 5,8,10, or 12 year period then full interest will be paid for a completed term and saving rate will applicable for the fractional period.

x. Loan advantage:

After 3 years of saving in this Scheme the depositor (in an adult) is eligible for a loan up to 80% of his deposited amount. In that case, interest rates on the loan will be applicable as per prevailing rate at that time.

Reasons for disqualification from this Scheme:

· If the depositor fails to pay three installments in a raw, then he will be disqualified from this Scheme and interest will be applicable as mentioned in withdrawal clause.

· If the depositor fails to five installments in a raw after completion of 5 years term then the Bank reserve the right to close the account and interest will be paid as mentioned in withdrawal clause.

· In case of death of the depositor the Scheme will case to function. The amount will be handed over to the nominee of the deceased depositor. In case of absence of the nominee the bank will hand over the accumulated amount to the successor of the deceased.

Rule:

· A from has to be filled at the time of opening the account. NO introduction is needed but attested photographs are advised.

· The depositor can select any of the installment accounts. Which cannot be subsequently changed?

· Incase of minors the guardians may open and supervise the account in his favors.

· A single person can open more then one account for saving under several installment rates.

· The accumulated deposit with interest will be returned within one month of completion of a term.

· The depositor should notify the bank immediately of any change of address.

· The government tax will be deducted from the interest accumulated in this Scheme.

· If necessary, at the request of the depositor, the Scheme can be transferred to different branches of the same bank.

· The bank reserves the right to change the rules and regulations of the Schemes as and when deemed necessary.

xi. Monthly Installment Statement Charge:

Years	MonthlyInstallment (Tk)	MonthlyInstallment (Tk)	MonthlyInstallment (Tk)	MonthlyInstallment (Tk)
	500	1000	2000	5000
5	39041	78082	156164	390411
8	74202	148404	296809	742024
10	105095	210190	420380	1050952
12	144461	288923	577847	1444618

and there looking for where they can deposit the money. According to their demand AL-ARAFAH ISLAMI Bank started this money income Scheme. A monthly income Scheme their really makes good sense. An investment for steady return.

xiii. Highest of the Scheme:

· Minimum deposit Tk. 2,39500.

· Higher Monthly Income for higher deposits.

· The Scheme is for three – year period.

· Monthly income will be created to the depositor’s account on the fifth of each month.

· After three years the Account holder would received Tk 10000000.00

xiv. Objectives of the Scheme

· An account is to be opined by filling up a form.

· The Bank provides to the customer a deposit receipt after opening the account. This receipt is non- transferable.

· If the deposit is withdrawn before a five years term, then saving interest rate will be applicable and paid to the depositor. However, no interest will be paid if the deposit is withdrawn within one year of opening the account and monthly income paid the customer will be adjusted from the principal amount.

xv. Muduraba Millionaire Deposit Scheme–

Year	Monthly Deposit Amount	Matured Amt.
3	23950	1000000
4	16950	1000000
5	12750	1000000
6	9950	1000000
7	8000	1000000
10	4600	1000000
12	3345	1000000
15	2170	1000000
20	1150	1000000

xvi. Muduraba Lakhapati Deposit Scheme–

Year	Monthly Deposit Amount	Matured Amt.
3	2375	100000
5	1275	100000
8	670	100000
10	460	100000
12	335	100000

xvii. Muduraba Kotipoti Deposit Scheme–

Year	Monthly Deposit Amount	Matured Amt.
3	239500	10000000
4	169500	10000000
5	127500	10000000
6	99500	10000000
7	80000	10000000
10	46000	10000000
12	33450	10000000
15	21485	10000000
18	14330	10000000
20	11100	10000000

13. Cash Section

Cash section of any Bank plays a vital role in general banking procedure. Because it deals with the most liquid assets. There are several counter works simultaneously in cash section of AL-ARAFAH ISLAMI Bank Joydebpur Chowrasta branch. There are also some electronic counting machines by which a huge amount of case money can be counted within a few minutes.

13. a. Cash receiving procedure:

The work of case receiving counter is examining deposit slips. Depositor user the prescribed deposit slip supplied by the Bank for deposit cash, draft, cheque, pay order etc.

In all types of deposits teller must cheek the following things:

· The slip has been properly filled up.

· The title of the account and its umber.

· The amount in figure and in words is same.

· Instrument signed by the depositor.

After checking all these things the teller will accept the cash, cheque, draft, pay order etc. Against deposit slip, the teller will please the cash in the drawer account to denominations. The teller will place signature affix “cash receipt, rubber stamp seal” and record in the cash received register book against the account number, at the end of this procedure, the cash officer passes the deposits slip to the computer section for posting purpose and returns the customer’s copy.

Accounting treatment:

Date	Particulars	Debit	Credit(Tk.)
	Cash A/C Dr.To Customer’s A/C	Xxx	Xxx

13.b. Cash payment procedures

Precaution:

In order to safeguard the position the paying Banker has to observe the following precaution before honoring the cheque:

· A cheque must looked whether it is an opened or closed cheque .

· The paying officer should see whether the cheque is drowning on his branch.

· He must see if the cheque is postdated .A letter must not pay post- dated cheque.

· The officer must carefully see the apparent tenor of the cheque. If it is mutilated of materially altered then the officer must not honor it.

· The offer must compare the signature of the cheque with the signature of the specimen signature card.

· The officer must verify the regularity of the endorsement.

· The officer may allow overdue against a cheque if prior arrangement is done with the bank.

Padding a cheque:

After verifying the above mentioned things the offer to make payment by putting ‘pay cash’ seal the cash officer make it clear to pay. The cash officer gives the cash amount to the holder and record in the cash paid register.

Account treatment:

Date	Particulars	Debit(Tk)	Credit(TK)
	Customer A/C Dr.To Cash A/C	Xxx	Xxx

14. Deposit Section:

The function of the deposit is very important. It is fully computerized. The officer of the deposit section maintains account numbers for different account number of all the customers of the Bank. They are used different code numbers for different account. By this section a depositor/drawer can know what is the present position of his/her account. The officer makes posting three types of transactions such as cash, clearing and transfer. This section performs the following tasks.

· Post all kinds of transactions.

· Provide on demand report.

· Cheque maintenance.

· Preparation of day transaction position.

· Preparation of closing monthly transaction.

15. Remittance Section:

Banks have a wide network of branches over the country and offer various kinds of remittance of the public. The main instrument used by the AL-ARAFAH ISLAMI Bank of remittance of funds is:

· Payment order (PO)

· Demand Draft(DD)

· Telegraphic Transfer(TT)

· On-Line Transfer.

15.a. Demand Draft (DD):

It is an instrument containing an unconditional order of one Bank to another to pay a certain amount of money to the named or order the amount therein on demand. DD is very munching popular instrument for remitting money from one corner of a country to another. Commission for DD is 0.1% of the principle amount.

15.b Accounting treatment:

(DD by Cheque/cash)

Date	Particulars	Debit(Tk.)	Credit(Tk.)
	Cheque/Cash A/c Dr.To Demand Draft To DD commission A/c	Xxx	XxxxXxxx

15.c. Different between pay order and demand draft:

There are some different between pay order and demand draft, which are:

§ In case of demand draft both the payee need to have account. But there is no certain rule for pay order.

§ PO is used in the same clearing area. DD is used for all kinds. DD can not be done in the same clearing area.

§ DD is drawn on a certain Bank officer. But there is no certain rule for PO.

15.d. Telegraphic Transfer (TT)

Telegraphic transfer is the quickest method of transferring funds from one place of another. Sometimes the remitter wants that the money to be available to the payee immediately. In that case bankers are requested to remit the fund telegraphically. Here the remitter bears the additional charge of telex/telephone. Charge for TT is 0.15% of the principal amount and the addition charge telex/telephone is Tk. 30.00 In case of TT both the parts must have accounted.

16. Account Section:

This is a very much crucial department for each branch of a commercial Bank. Recodes of all the trisection of every department are here as will as with order respective branches. Accounting department verifies all financial amounts and contents of transaction. If any discrepancy arises regarding any transaction this department report to the concerned department.

16.a. Tasks of accounts department:

Accounts department plays vital role in commercial banking. In privet banking sector accounts department of AL-ARAFAH ISLAMI Bank Bangladesh Ltd. Performs its tasks properly.

The activities of account section are as follows:

o Record all transaction in the cash book.

o Record all transaction in the general subsidiary ledger.

o Prepare daily fund function, weekly position, period statement of affairs etc.

o Prepare necessary statement for reporting purpose.

o Make salary statement and pay salary.

o Branch to branch fund remittance and support for accounting treatment.

o Budgeting for branch.

Make charges for different types of duties.

17. My Findings

Data analysis and interpretation based on questionnaire and interviews on the customers/clients.

1. What is your opinion about the banking environment of AL-ARAFAH ISLAMI bank Ltd?

Table 1 (About environment of AL-ARAFAH ISLAMI Bank)

SL No:	Comments	No of person	Percentage
1	Very Good	35	35
2	Good	60	60
3	Fair	5	5
4	Poor	0	0
	Total	100	100

Interpretation:

From the data analysis we can see, most of the clients agreed that banking environment of AL-ARAFAH ISLAMI Bank is good. Some people committed it is very good and a few said that it’s fair.

2. Employees are always ready to help the customers. Do you agree?

SL No.	Comments	No. Of person	%
1	Yes	95	95
2	No	0	0
3	Some times	5	5
	Total	100	100

Interpretation: Analysis shows that most of the customer agreed that employees are always ready to help. They are very cooperative.

3. Do you think customer is getting more facilities here in comparison with other bank?

SL No.	Comments	No. Of person	%
1	Yes	60	60
2	No	0	0
3	Not all cases	40	40
	Total	100	100

Interpretation: from the analysis it is found that customers are getting more facilities comparing to other bank. At the same time a large number of clients expressed that in some specific cases such as interest rate etc. They are getting more facilities, but not all sectors of banking service.

18. What is your suggestion to improve the service quality of Al-Arafah Islami bank ltd?

In order to improve the service quality customer expressed different opinion in their point of view. I can summarize their opinion, which is the gist of their suggestions. They have of take some more steps to improve the service quality. Each department of the Banks should computerized the cash transaction process would be easier and very prompt that it would take a very short time. More branches should be opened in Dhaka City and other cities of his country. They will have customer credit Scheme and other Scheme that will help the customer. It is badly needed to provide modern Banking services such as Credit Card, ATM card, Visa card etc. AL-ARAFAH ISLAMI Bank is providing better service comparing to other privet Banks. But there are almost 52 Bank in our country. In the near future some new banks are going to be opened. So, in order to complete in the market AL-ARAFAH ISLAMI Bank should be have to improve their service. They should increase their manpower and will have to improve their service quality and provide more facilities.

19. Finding in different sections of the Bank:

I found that all the sections of the Bank are facing lack of manpower as a general problem.

General Banking Department:

In general banking department they follow the traditional banking system. The entire general Banking procedure is not fully

· Computerized. As a result some processing for example collection money from the deposit take a long time to perform.

· The cash counter I think is congested and the procedure is also traditional.

· There is no computer in Accounts Opening section and Remittance section. That’s why the service is not prompt as the customer’s demand.

· Lack of variety of services is also a drawback of the general Banking area of the AL-ARAFAH ISLAMI Bank of Bangladesh Ltd. The Bank provides only some traditional limited service to its client. As result Bank is falling behind in competition.

20. Recommendations

· Banking is service oriented marketing. Its business profit depends on its service quality. That’s why the authority always should aware about their service quality.

· To provide service to the customer it is necessary to have a trained team of an organization of an institution. For this reason the Bank should recruit more fresh, bright and energetic person.

· Bank should offer Bank is launching “Customer Credit Scheme” AL-ARAFAH ISLAMI Bank is failing to launch this kin of Scheme. The management can undertake such sort of Schemes and earn more profit.

· As soon as possible the Bank should stat more benches in Dhaka City as well as the other cities of the country.

· Now a day’s world is going very fast. Now most of the Bank opens online customer service system. So, in order to compete in the world market they should adopt online Banking system.

· The Bank should attempt to enter into the share market by issuing share to capitalize more money and invest thereafter by expanding the number of branches around the city.

· The recruitment process of the Bank is very length an expensive. The bank should select the employee by reducing the lengthy process.

· In general banking department it is necessary to implement modern Banking process instead of tradition system. The department should be more computerized.

· Data base net working is the most modern technology to transfer data from branch to branch or branch to head office and vice versa. So, they must use this technology in information technology (IT) department of the Bank.

· The loan sanction process should be easier that the clients can feel convenient to take loan from the Bank.

· To make exchange process more prompt the authority should use modern communication system such as E-mail, Fax, win Fax Internet etc.

21. Conclusion

Export Import Bank of Bangladesh Limited is a third – generation private commercial bank in the country with commendable operating performance Directed by the mission to provide prompt and efficient service to clients, AL-ARAFAH ISLAMI Bank ha successful celebrated its sixty years of operation. It provides a wide rage of commercial banking services AL-ARAFAH ISLAMI Bank has a achieved success among its peer group within a short span of time with its professional and dedicated team of management having long experience, commendable knowledge and expertise in conversion with modern banking. With all its resources, the management of the Bank firmly believes that the bank would be able to encounter problem that h may arise both at micro and macro economic levels. The Management of the bank is maintaining an efficient portfolio in order to have a healthy growth and retain customer satisfaction. AL-ARAFAH ISLAMI Bank is engaged in modern banking. It is expected that AL-ARAFAH ISLAMI Bank by its efficient Asset and liability management will be able to maintain its trend of growth and thus overcome the threat. Neither AL-ARAFAH ISLAMI bank nor any other commercial bank can effectively combat risk. However, AL-ARAFAH ISLAMI Bank having small and targeting niche markets is likely to be less affected by restrictive monetary and / or fiscal policy. The Management of the Bank is planning to meet the required capital adequacy withering the stipulated time frame, and a loan and advance policy that expected the loan loss provisioning in future will be within tolerable limit having little material impact on future profitability as well as net worth. Although AL-ARAFAH ISLAMI bank is yet to be fully automated and it proceeding aggressively to enhance its technology level. As AL-ARAFAH ISLAMI bank is performing good in traditional general banking and there is a good demand for Islamic Banking and the opining if then (The management) that the performance of the Bank is getting much better than past. I wish and hope that in future AL-ARAFAH ISLAMI Bank will be Number one commercial Bank in Bangladesh.

22. References & Bibliography

a. Annual report of AL-ARAFAH ISLAMI Bank Limited,2006

b. Different types of voucher of AL-ARAFAH ISLAMI Bank.

c. Articles of AL-ARAFAH ISLAMI Bank.

d. Business Communication

John V. Lesiker

e. Strategic Management- concept and cases (Ninth Edition)

Arther a Thompson, Jr A.J. Strickland.

f. Principle of Management (Eight Edition)

Terry and franklin

g. Principle of Marketing (millinnium Edition)

Philip Kotler.

h. Design and operation of customer service system.

Paul S. Bender

i. Business Accounting-1 (Sixty Editions)

Frand Wood’d

j. Banking Theory and practice. K. C. Shekhar.

k. Fiancé and Banking dictionary.