This report is prepared as requirement of the internship of MBA/BBA program of different university. This report focuses two months working experiences in Local Office Branch, Islami bank Bangladesh limited. This report will give a clear idea about activities and operational strategies of IBBL. Especially this report focuses on the General Banking, Investment Mode and Foreign Exchange by IBBL.
Islami bank Bangladesh limited was established in March 1983 with a clear manifesto of demonstrating the operational meanings of participatory economy, banking and financial activities as an integral part of an Islamic code of life. The philosophy of Islami banks is to establish as egalitarian society based on the principle of social justice and equity.
As an integral part of this process Islami banks introduced measures to abolish interest and charge or pay fixed interest on loans or deposits. Interest of pre determined interest on deposits; the depositors participate in the profit of the bank as an agreed ratio. Whereas, interest based conventional banks pay a fixed interest on savings and time deposits and grant loans with interest for any purpose.
Basically IBBL is an Islamic Bank based on “ISLAMIC SHARIAH”. It follows the alternative concept of Islamic Banking. Which represents unique human approach to credit and banking based on profit-oriented economy devoid of interest, in this regard IBBL has introduced a number of income generating programs for the millions of urban and rural poor. With the objective in view IBBL has formulated a profitable live in a batter society with greater security and peace. IBBL is opening in a three sectors banking system, such as formal, non-formal and voluntary sector. General banking, Investment and foreign exchange are operated under the formal sector.
Development management of Waqf and mosque properties, management of in heritance properties, and joint venture project for management of non-profit foundations, charitable trusts and organizations are executed under the voluntary sector.
It is important feature that Islam bank does not deal with money lending rather they deals with goods. They invest money in various profitable business activities, either directly by themselves or in partnership with other, seeking to earn or share legitimate (Halal) profit. They have provision for Qard Hasana or beneficent loan in deserving case without any consideration of profit but return on the same. These are returnable, if and when the beneficial is able to repay. Investment management by Islami Bank and credit management by conventional interest based bank is synonymous. But Islami Bank deals with goods, which is measured by money and share profit or loss with the beneficiaries. On the other hand conventional bank directly deals with money or credit by the contract of pre-agreed fixed interest rate.
As a kid in the banking industry IBBL is performing well as it has acquired the assets and human resources of higher quality. IBBL will be more effective in our economy by adopting modern financial technology by extending their activities in human & social welfare.
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