Internship Report on Investment Management of SIBL and AIBL- A Comparative Study

Economic functions depend on Banking System mainly. It is an important arena for a nation. A banking institution (financial intermediary) is an integral part for a modern society. It plays a vital role in the economic development of a country. It is also the base to make the money market in an advanced country. In Bangladesh banking sector is lagging far behind in adopting the changes of deregulation, technological innovation, and globalization. To prosper well in this changing environment professionalism in banking service is essential. The Banking sector is governed by the rules and regulation of Central Bank of the country i.e. Bangladesh Bank.
Social Islami Bank Ltd. is one of banks in our country which was established on July 05, 1995 and started its functions from November 22, 1995. It is committed to conduct all banking and investment activities on the basis of interest-free profit-loss sharing system. In doing so, it has unveiled a new horizon and ushered in a new silver lining of hope towards materializing a long cherished dream of the people of Bangladesh for doing their banking transactions in line with what is prescribed by Islam. With the active co-operation and participation of Islamic Development Bank (IDB) and some other Islamic banks, financial institutions, government bodies and others cooperation, Social Islami Bank Limited has by now earned the unique position of a leading private commercial bank in Bangladesh.

And Al-Arafa Islami Bank Limited incorporated as a banking company on 18 June, 1995 under the companies act 1994 as an interest-free Shariah bank in Bangladesh. It launched banking operations on 27 September, 1995 with an authorized capital of Tk 5,000 million. The initial paid up capital was Tk 4677.28 million. The bank renders all types of commercial banking services and it conducts business on the Islamic principles of Murabaha, Bai-muazzal and Hire Purchase transactions. The bank offers banking services through deposit and investment accounts. The investment portfolio covers a broad spectrum of businesses and industries.

The business world is getting dynamic and competitive. It is hard for an organization to run & even survive in a fast paced, growing and uncertain world if it cannot keep tracks with the go of business dynamism. Business plays and links important roles in developing the economy of a country. So, as a business graduate, I think I need to be attached with any organization to get a handy & versatile experience about the business world before starting our career. Internship is the arrangement, which makes a bridge between our academic knowledge and practical world to have an acquaintance with the real business world as well as to gear me up to lead the future competitive business.

The report is a requirement of the internship program for my MBA program. My internship instructor Mr. M. Muzahidul Islam, Professor, Department of Banking, University of Dhaka, has duly approved the topic of my report. During my internship, I was concentrated on different functions regarding the Investment division, Foreign Exchange division, General banking division which inspired me to choose this topic. The report thus was titled as “Investment Management of SIBL & AIBL- A Comparative Study”.