Internship Report on Foreign exchange activities of Islami Bank Bangladesh Limited (IBBL)

This internship is a part of the Bachelor of Business Administration (BBA) program that provides an on-the-job experience to students. I was placed at Islami Bank Bangladesh Limited, Paltan Branch as an internee student for three months. This internship program was my very first on-the-job exposure and provided me with learning experience and knowledge in several areas. During the first few weeks of my internship period, I was able to get accustomed to the working environment of Islami Bank Bangladesh Limited. As the internship continued, I not only learned about the activities and operations of correspondent Bank, but I also gathered some knowledge about the basic business activities of banking in first one-month of my internship period.
Generally by the word “Bank” we can easily understand that the financial institution deals with money. Bank plays a pivotal role in the development process of a country. It helps accelerate the pace of development by securing uninterrupted supply of financial resources to people engaged in numerous economic activities.
Islamic banking is a banking system whose operation is based on Islamic principle of transaction of which profit & loss (PLS) is a major feature, ensuring justice and equity in the economy. These people possess strong faith on Allah and they want to lead their lives as per the constructions given in the holy Quran and the way shown by the prophet Hazrat Muhammad (Sm).To fulfill the desire of the mass people and to ensure the rules of Allah in the banking sector Islami Bank Bangladesh Limited (IBBL) was established on March 13, 1983. This Bank is the first of its kind in Southeast Asia Banking functions of IBBL is an important aspect in our economy as it has broken the line of interest based traditional banking system through the introduction of Islamic Shariah based banking. With the active co-operation and participation of Islamic Development Bank (IDB) and some other Islamic banks, financial institutions, government bodies and eminent personalities of the Middle East and the Gulf countries. Islami Bank Bangladesh Limited has by now earned the unique position of a leading private commercial bank in Bangladesh.

1.2 Origin of the report:

Education system will be more rich and helpful when there is a combination of theoretical and practical relationship with a student. From education the theoretical knowledge is obtained from courses of study, which is only the half way of the subject matter. Practical knowledge has no alternative. The perfect coordination between theory and practice is of paramount importance in the context of the modern business world in order to resolve the dichotomy between these two areas. Therefore, an opportunity is offered by Bangladesh Islami University, for its potential business graduates to get three months practical experience, which is known as “Internship Program”. To complete of the internship program, I was placed in a bank namely, “Islami Bank Bangladesh Limited”, Paltan branch for the period of three months starting from 08 October, 2012 to 06 December, 2012. Internship Program brings a student closer to the real life situation and thereby helps to launch a career with some prior experience.

1.3 Background of the Study:

Islami Bank Bangladesh Limited is the first Shariah based Islami Bank in Bangladesh and South Asia having a spread network of 282 branches across Bangladesh and plans to open few more branches to cover the whole country. The Islami Bank Bangladesh Limited was the host organization for the two months Internship Program which began on October 08, 2012, and ended on 06 December. To prepare the report as an apprentice I have taken necessaries assistance from Islami Bank Bangladesh Limited. This study attempts to analyze the performance evaluation and foreign exchange activities of IBBL. It performance was reviewed and analyzed through the annual report and internal record of the bank.

1.4. Significance of the report:

The main reason of this study is to become familiar with the realistic business world to attain practical knowledge about the banking and corporate world.

We all know that there is no alternative of practical knowledge which is more beneficial than theoretical aspects.

1.5 Scope of the Study:

The scope of this study is limited to the organizational structure, background, and objectives, functions, and mainly the Foreign Exchange 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. It focuses on:
  • · An overview of IBBL
  • · Import and Export procedure of IBBL
  • · Foreign Exchange performance of IBBL
  • · Inward Foreign Remittance of IBBL
  • · An overview of foreign exchange activities of IBBL

1.6 Objectives of the Study:

The objective of the internship program is to familiarize students with the real business situation, to compare them with the business theories & at the last stage make a report on assigned task. Specific objectives are as follow:

· The major objective of the study is to observe & evaluate foreign exchange activities of Islami Bank Bangladesh Limited.
  • · To know the foreign exchange procedures of Islami Bank Bangladesh Limited.
  • · To know the Import procedures.
  • · To know the Export procedures.
  • · To know the foreign exchange operation.
  • · To know Foreign Remittance.