Internship Report On General Banking Investment and Foreign Exchange Operations of IBBL


This report is prepared as per requirement of the Internship phase of BBA program of the Department of Finance, University of Dhaka. The report will give a clear understanding about the “General Banking, Investment and Foreign Exchange operations of IBBL”. The first part is about the Islamic Banking. For an expanding economy, a developed and efficient banking system is indispensable. The establishment of Islami Bank Bangladesh Limited on March 13, 1983, is the true reflection of this inner urge of its people, which started functioning with effect from March 30, 1983. This Bank is the first of its kind in Southeast Asia. It is committed to conduct all banking and investment activities on the basis of interest-free profit-loss sharing system

Another part is about “General Banking Operations”, which is the core for any banking operations. It deals with most of the customers. The bank offers all sorts of services for the customers. Different types of accounts are available, deposit products, provides a wide range remittance modes such DD, TT, PO, etc. The cash section of any bank also plays very significant role in general banking department because, it deals with most liquid assets. All cash receipts and payments are made through this department.

The other part of the report is about investment under Islamic Shariah. IBBL invests by three modes. They are Bai-Mode, Leasing-Mode & Share-Mode. IBBL commonly use Bai-Mode. Sometimes they use Leasing-Mode, but most of time they are not willing to invest in Share Mode. Another portion of this part is about various special schemes of IBBL such as Household Durable Scheme, Real Estate Investment program etc. In this part Rural Development Scheme is also included. The performance of IBBL in investment is also mentioned. There are two types of investment, sector–wise investment & mode-wise investment.

The next part of the report is about the Foreign Exchange operations. It is an international department of the bank. It facilitates international trade through its various modes of services. It bridges between importers and exporters

The last segment deals with recommendations. Specifically, it must focus sharply on improving customer service. It must also emphasize on developing infrastructural facilities and incorporating technology throughout the branches for fast and efficient service for delightful customer service. IBBL can diffuse its scope of investment through focusing Shariah concept regarding investment among the bank officers, employers and the clients by rigorous training programs, workshop, seminars and clients-get together. IBBL should initiate different investment modes according to diverse needs of clients by conducting huge research and study etc. It must also put emphasis on advertisement, without which market share would not increase.

This report is based on an internship program. IBTRA (Islamic Bank Training and Research Academy) arranges this internship program to gather practical knowledge about banking activities. This is followed by practical experiences in the branches of IBBL. Each intern must carry out a specific project, which is assigned by the IBTRA. Consequently a report based on the projects is to be submitted to both the authority of IBTRA and the University. My topic for this internship report is “General Banking, Investment and Foreign Exchange Operations of IBBL”. Hence I was placed in the Foreign Exchange Branch of IBBL.

Objectives of the Study
The first objective of writing the report is fulfilling the requirements of the BBA program. In this report, we have attempted to give on overview of Islami Bank Bangladesh Limited in general. Following are the main objectives
ü To familiar the history and operations of Islami Banking in Bangladesh.
ü To show the investment mechanism and product offerings in different modes of IBBL.
ü To show overall investment proposal, appraisal procedures, documentation system of IBBL and Conventional Banks.
ü To show the differences with conventional banking regarding investments aspects
ü To identify strength and weakness of investments of IBBL.
ü To identify the problems related to investments faced by IBBL.
ü To recommend actions that may be necessary to redesign the investments of IBBL.

Scope of the Report
The scope of this paper is limited to the organizational structure, background, and objectives, functions, and investment performance of IBBL as a whole. The scope is also limited to different investment schemes, modes, mechanism, investment proposal appraisal procedures, monitoring and documentation of IBBL, general banking aspects and foreign exchange operations.

1.2. Methodology of the Study:
Mainly I have collected data from two sources. These two sources are as following:

Primary sources &
Secondary sources
ü The Primary sources of my information are as below:
Direct observation
Expert opinion &
Questioning the concerned persons
The secondary sources of my information are as below:
Annual report of Islamic Bank Bangladesh Limited
Desk report of the related department i.e. IDFD
Other manual information
Different reference books of the library

Limitations of the Study:
There are some limitations in my study. I faced some problems during the study, which are given below:
i. Lack of time: The time period for this study was very short. I had only 8 weeks in my hand to complete this report, which was not enough. So, I could not go in depth analysis. Sometimes the officials were busy & were not able to give much time.
ii.Insufficient data: Some desired information could not be collected due to confidentiality of business.
iii. Lack of Supervision: Few officials sometimes felt disturbed, as they were busy with their tasks. Sometimes, they didn’t want to supervise due to pressure of work load.
Other limitations: Frequent Hartals and recent political situation of the country were some of the limitations.