Internship Report On Evaluation of Investment Activities of Social Islami Bank Limited

Bangladesh is one of the largest Muslim countries in the world. The people of our country are deeply committed to Islamic way of life. To lead a modern life, strong economy is needed in the country. Banks are now playing a vital role for the economic development of the country. Islamic banks also are now playing a significant role for economic development of the country beside conventional banks under the Islamic shariah. There are seven Islamic banks operating in our country. Social Islami Bank limited an interest free Islamic shariah based bank was incorporated in Bangladesh on 5th July, 1995 under the company act 1994. This bank provides all kinds of services under the Islamic shariah. The bank is extending its investment activities under the different modes such as – Bai – muazzal, HPSM, Bai – salam , Bai – murabaha , Musharaka, Bai – Istisna , SME etc. Among these investment modes, bank charges now (13% - 16%) profit on different modes for investment. The bank also follows investment policies and Bangladesh bank guidelines for the investment activities. 
The investment procedures of SIBL are same as other banks which help the bank to invest safely to reduce the investment risk of the bank. The investment procedures of the bank start from taking request from the client for credit and end at taking precautions and take legal actions against default clients. By analyzing the investment performance from year (2006 -2010) with the help of trend and some ratios analysis, it is found that the investments, investment income, NIIM, ROA, and CAR etc of SIBL have been better and better over the years. The classified investments to total investment are in a decreasing trend over the five years which is a good sign for the bank. By analyzing the different modes of investment from year (2006 -2010) it is found that SIBL mainly focuses on Bai – muazzal and HPSM investment mode as their major investment activities. But when SIBL is compared with another Islamic bank known as – IBBL, it is found that the performance of investment of SIBL is very low than IBBL from the year – (2008 -2010) except CAR. By comparing with the IBBLfrom year (2009 -2010) on the different modes of investment, it is found that IBBL mainly focuses on Bai – murabaha investment mode where SIBL mainly focues on Bai – muazzal investment mode. By doing the regression analysis between investments income of SIBL considered as dependent variable and the most three investment modes such as – bai – muazzal, HPSM and Bai – murabaha considered as independent variables , it is found that HPSM investment modes contributes more on investments income of SIBL than other modes. After that some positive and negative findings are found regarding the investment related activities by the practical experience while working on the branch.

In the age of modern civilization bank is playing its significant role to keep the economic development of the country. The corporation of the bank is needed in every economic activity. In fact there is hardly any aspect of development activity where state inspired or otherwise where banks do not have role to play.

It gives me immense pleasure that during internship period, as a part of the MBA program, I have an opportunity of spending a period of three months with a reputable organization where I observed and learned the practice and management. I am very lucky that SIBL gave me opportunity to work as intern. SIBL has countrywide branch network thorough, which they provide a comprehensive banking service to their customers, which includes wealthy individuals, corporate client and financial institutions. Customer’s satisfaction is the top priority of this bank. The main goal of the bank is to meet up the customer’s expectations through innovative financial products and services. SIBL’s Deposit scheme includes current accounts (AWCD), savings accounts (MSD), fixed deposits receipts (MTDR), foreign currency current accounts; security deposits receipts (SDR), short-term deposit accounts (STD). Loans scheme includes consumer credit, education, and executive loan, corporate loan, household loan, real estate loan, Transport loan etc which are provided by the SIBL through different investment modes such as – Bai -muzzal, HPSM, Murabaha, Bai- salam, installment investment scheme, Quard etc which is done by the Islamic shariah. 

As an intern of Social Islami Bank Limited I was provided with the topic “Evaluation of Investment Activities of Social Islami Bank Limited (SIBL)”. Various rules and regulations, policies and procedures relation to different banking activities have also been enumerated here. But here I mainly wanted to focus the investment activities and analyzed the investment process and finally evaluated the performance regarding the investment activities of SIBL.

The prime reason of this study is to become familiar with the practical business world and to attain practical knowledge about the Banking and Corporate world, which is so much essential for each and every student to meet the extreme growing challenges in job market. It is also known to all of us that there is no alternative of practical knowledge and the practical knowledge is much more durable and useful than the theoretical knowledge. This study will help us to get a true picture of the practical business world, particularly of banking business and also to attain practical knowledge on the various spheres of banking business. So this study is of paramount importance for each and every student regardless of his/her study area or discipline.