CHAPTER ONE

Introduction
1.1 Rationale of the Study 1.2 Objectives of the Study 1.3 Research Methodology 1.4 Limitations of the Study

Investment Procedure Of Shahjalal Islami Bank Limited

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1. 1 Rationale of the study:

The BBA program is designed to focus on theoretical and professional development of people that they can take up the usiness as a profession and can do success in their career! "or this reason the student have to complete the internship course and prepared a report on internship #ork! I have prepared this report on $Investment procedure of shahjalal islami Bank Limited% ased on the Internship e&periences of Shahjalal Islami Bank Ltd! This research is an e&ploratory research in nature and especially I tried to focus the investment activities of the ank!

1.2 Objectives of the study:

The main o jectives of this study are given elo#' To highlight the Investment procedure of shahjalal islami Bank Limited. To analysis investment performance of Shajalal Islami Bank Limited .

1. Resea!ch "ethodolo#y:
This report is ased on primary ( secondary data'

P.I/A.0 P.I/A.0 1ATA 1ATA

S23O41A.0 S23O41A.0 1ATA 1ATA

P!i$a!y %ou!ces: Informal discussion #ith the officers! %econda!y %ou!ces: Annual report of Shajalal Isalmi Bank Limited *+1+, *+11. Bank-s #e site' ###!shahjalal ank!com! d!

Investment Procedure Of Shahjalal Islami Bank Limited

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1.& 'i$itations of the study:

The study has een conducted to make an investigation of the ank5s state of affairs of investment sector, on the study in this field some pro lems #ere created, #hich may e termed as limitations of the study! They #ere as follo#s' 2nough information #as not availa le as re6uired to make a comprehensive study! The main constraint of the study is inade6uate access to information, #hich has hampered the scope of the analysis re6uired for the study In many cases, up to date information is not pu lished! The time is insufficient to kno#n all activities!

Investment Procedure Of Shahjalal Islami Bank Limited

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CHAPTER T(O
CO"PAN) PRO*+'E

Investment Procedure Of Shahjalal Islami Bank Limited

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PRO*+'E O* %HAH,A'A' +%'A"+ -AN. '+"+TE/

2.1 +nt!oduction: Bangladesh is one of the largest /uslim countries in the #orld!
The people of the /uslim community #ishes to design their economic activities in accordance #ith the percepts of Islam so the esta lishment of some num ers of Islami Bank in Bangladesh is the true reflection of long day-s deep cry in their heart! The O jective of Islami Banking is not only to earn profit, ut also to do good and #elfare to the people! Islam upholds that, money, income and property elong to Allah and this #ealth is to e used for the good of the society! Islami Banks operate their anking activates ased on the Islamic principles of profit and loss sharing and strictly avoiding interest! Shahjalal Islami Bank Ltd! is one of the leading commercial anks that #ere

incorporated as a pu lic limited company on 1st day of April *++1 under the 3ompanies Act 1998! The Bank commenced its operation as interest free shariahased commercial ank on 1+th /ay, *++1 #ith the permission of Bangladesh Bank! The name of the ank has een changed from $Shahjalal Bank Limited% to $Shahjalal Islami Bank Limited% on April 1:, *++8 #ith the permission of Bangladesh Bank! Aiming at offering commercial anking service to the customers- door around the country this organi)ation achieved customers- confidence immediately after its esta lishment!

2.2 0ision:
To e the modern uni6ue Islami Bank in Bangladesh and to make significant contri ution to the national economic and enhance customer-s trust ( #ealth, e6uity, investment, employees value and aped gro#th of shareholder e6uity!

2. "ission:
Investment Procedure Of Shahjalal Islami Bank Limited
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 To set high standards of integrity! To make 6uality investment! To ensure sustaina le economic gro#th! To ensure ma&imi)ation of shareholder-s #ealth! To e&tend our customer innovation services ac6uiring state of the art technology lended #ith Islamic principal! To ensure human resource development to meet the challenges of the time!

2.& %t!ate#ies:
To strive our customer est satisfaction ( earn their confidence! To manage ( operate the ank in the most effective manner! To identify customers needs ( monitors their perception to#ards meeting those re6uirement! To revie# ( practices to enhance the a ilities to e&tend etter services to the customer! To train ( develop all employees ( provide them ade6uate resources so that the customer need reasona le addressed! To promote organi)ational y communicating company plants, politics ( procedures openly to the employees in a timely fashion! To cultivated a congenial #orking environment! To diversify portfolio in oth the retail ( #holesale markets!

2.1

"otto O* %,+-':
3ommitted to 3ordial Service

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2.2 Co!3o!ate +nfo!$ation

4ame of 3ompany Legal "orm the Shahjalal Islami Bank Limited A pu lic limited company incorporated in Bangladesh on 1st April *++1 under the companies Act 1998 and listed in 1haka Stock 2&change Limited and 3hittagong Stock 2&change Limited!

3ommencement of 1+th /ay *++1 Business =ead Office Telephone 4o! "a& 4o! Ee site SEI"T 2Cmail 3hairman >day San), Plot 4o! S2 ?A@ *AB Bulshan South Avenue, Bulshan C 1, 1hakaC1*1*! ::C+*C::*;8;D,::*:18*,::*8D7<,::197:;,::1:D7D ::C+*C::*8++9 ###!shahjalal ank!com! d SFBL B1 1= s lhoGshahjalal ank!com! d Alhaj An#er =ossain Hhan

/anaging 1irector /d! A dur .ahman Sarker /AS! =oda Iasi 3ho#dhury ( 3o! 3hartered Accountants Ispahani Bha an 18C1; /otijheel 3AA 1hakaC1+++ Phone' ::C+*C9;;;91;, 9;<+77* /AS H!/ =asan ( 3o! 3hartered Accountants :D, 4e# 2skaton .oad 1haka! Phone' ::C+*C97;18;D, 97;1;<8 =asan ( Associates 3ham er of 3ommerce Building ?<th floor@, <;C<< /otijheel 3AA, 1haka D8 1:

Auditors

Ta& Advisor

Legal Advisor 4o! of Branches 4o! of Booth 4o! of AT/

S/2 +<
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Investment Procedure Of Shahjalal Islami Bank Limited

3enters OffCShore anking +1 >nit 4o! of 2mployees 1,<D1 %toc4 %u$$a!y: Authori)ed 3apital Tk! <,+++ million Paid up 3apital "ace Ialue Share per Tk! 88;*!<;; million Tk! 1+

2.5 *unction of %,+-'

The operation of SFIBL can e divided into 7?three@ major categories'

6ene!al -an4in#: It IncludesC

a@ /o ili)ation of deposits! @ .eceipt and payment of cash c@ =andling transfer transaction d@ Operation of clearing house! e@ /aintenance of accounts #ith Bangladesh Bank and other anks! f@ 3ollection of che6ue and ill! g@ Issue and payment of 1emand 1raft and Payment Order! h@ /aintenance of internal accounts of the ank! %,+-' offe!s to o3en the follo7in# account to the de3osito!s: 1! AlCEadiah 3urrent Account *! /udara ah saving Account 7! /adara ah Term 1eposit Account 8! /udara ah Special 4otice 1eposit Account ;! /udara ah /onthly 1eposit Scheme <! /udara ah /illionaire Scheme D! /udara ah =ajj 1eposit Scheme :! /udra ah /ohor 1eposit Scheme :! /udara ah 2ducation Scheme!

*o!ei#n E8chan#e -usiness:

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"oreign 2&change Business plays a vital role in providing su stantial revenue in the ank income pool! Like all modern anks SFIBL operates in the area of the foreign e&change usiness!

+nvest$ent and othe! activities:

Investment is one of the most important activities in anking !Like other anks SFIBL is investing its funds in different sectors! It-s some important schemes are Small Business Investment Scheme, =ousehold 1ura le Investment Scheme, 3ur Purchase Investment Scheme, Overseas 2mployment Investment Scheme, Investment Scheme for 2&ecutive, Investment Scheme for 34B 3onversion, /arriage investment Scheme etc! Besides these activities, SFIBL performs different activities for the #elfare of the society!

2.9 *eatu!es:

Sense of satisfaction of having an international rand Any#here anything anking *8 hour ( Ddays a #eek anking 1irectly linked to 3ardholders Account 3onvenient 3ash Eithdra#al at AT/s Accepta ility at hue num er of JCcash AT/s around Bangladesh Accepted at all IISA terminals locally ( glo ally
Local ( International transactions #ith the same card ?for 1ual 3ards@

2.: Pe!fo!$ance of the %hahjalal +sla$i -an4 'i$ited:

1espite changing macroCeconomic condition and volatile money market and foreign e&change market, Shahjalal Islami Bank Limited #as successful in achieving much higher than national gro#th in deposit, Investment ?loans@, e&port, import, and remittance usiness! As on 71st 1ecem er *++9 total deposit of the ank stood at Tk! 8D,8;9 million sho#ing a gro#th rate of 7:!8;K, total amount of Investment of the ank stood at Tk! 879;: million #ith a gro#th rate of 77!;8K! 1uring the import volume stood at Tk! 79;87 million #ith a gro#th rate of <<!97K compared to that of the previous year! The gro#th of the e&port usiness has significantly een increased y 7+:D million! It stood at Tk! *9878 million as of 1ecem er 71, *++9 against *<78D million of the previous year #hich indicate 11!D*K Investment Procedure Of Shahjalal Islami Bank Limited
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gro#th over previous year! "oreign .emittance of the ank stood at Tk! 1+8D7 million as of 1ecem er 71, *++9 as against Tk!989: million of *++: #ith a significantly gro#th of 1+!*<K over previous year! The ratio of nonCperforming investment is #ithin the accepta le range of +!98K! The fact that nonCperforming investment ratio remained elo# 1K indicated that the strategy of 6uality gro#th y adhering to compliance in all spheres of operation is #orking #ell!

2.1; Ca3ital ade<uacy:

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%' 1 * 7 8 ; < D : 9 1+ 11 1* 17 18 1; 1< 1D 1: 19 *+ *1 ** *7 *8

*; *< *D *: *9 7+ 71 7* 77 78 7; 7< 7D 7:

+te$s Authori)ed 3apital Paid up 3apital Total 26uity 3ore 3apital Supplementary 3apital Total 1eposits Total Investment Import Business 2&port Business In#ard "oreign .emittance Total 3ontingent Lia ilities Total Income Total 2&penditure Operating Profit Profit Before Ta& Profit After Ta& "i&ed Assets Total Assets ?2&cluding Off Balance Sheet@ Iolume of 4on Performing Investment 2arning Per Share?Times@ Book Ialue Per Share 4et Asset Ialue Per Share Investment to total 1eposits ?K@ 1ividend Per Share' 3ash 1ividend Bonus 1ividend .eturn on 26uity ?K@ .eturn on Assets ?K@ Operating Income .atio ?K@ 4et Income .atio ?K@ 3apital Ade6uacy .atio ?K@ 3ost of 1eposit ?K@ 3ost of fund ?K@ .eturn on Beneral Investment ?K@ 4um er of Branches 4um er of Brokerage =ouse 4um er of S/2 3enter 4um er of 2mployees 4um er of Shareholders 4um er of "oreign 3orrespondences

2;1; 8+++ *D8+ ;87+ 8<D< D;8 8D8;9 879;: 79;87 *9878 1+8D7 188D; D11D ;+D< *+81 1D9; 1+D1 <*+ ;:9*1 817 79!+D 1++ 1D9!:+ 9*!<*

2;;: 8+++ **8< 8+<9 7<+; 8<8 7<8:8 7*919 8*;;1 *<78D 989: 1+DD1 ;*:; 78D; 1:1+ 1;<< :1: 779 8;*1D 187 7<!81 1++ 1<+!!;7 9+!*7 C **K *;!;: *!** 78!+: 1;!8D 17!:1 9!71 1+!99 1;!1+ 77 1 ; :D: 799D1 ;9+

2;;9 *+++ 1:D* 7+81 *D:: *;7 **<1: *+<1D *;89+ 1;+:8 8*9; <8+7 7;:9 **D8 171; 1*1< <8D 1*D *:78D 1*: *:!:1 1++ 18:!9; 91!1; C *+K *7!*1 *!<+ 7<!<8 1:!+7 1<!8* 9!++ 1+!8+ 18!<: *< C C ;;; 8+9<< ;;+

2;;5 *+++ 97< 17<7 1*+; 1;: 1:+91 1;;1< 1:<:8 11*:* 7;7; <+*+ *;<7 1D1: :8; D:: 8<7 97 *1787 7+ 89!;+ 1++ 1*:!D; :;!DD C 7:!88 *!1D 7*!9< 1:!+D 1+!:7 9!;; 1+!:7 18!+: *1 C C 7DD 19 89+

2;;2 *+++ 97< 8:8 D81 1+D 1**+; 1+;9+ 17118 <*9; <9+ 88:7; 1<*1 1119 ;+* 8<< *;< :7 1888: ;* 77!<7 1++ D9!*< :<!DD C 78!8< 1!D< 7+!9; 1;!D< :!D+ :!*7 9!D< 17!*1 1< C C 78+ 19 8<+

*;K *;!1+ *!+: *:!<: 1;!+8 17!9: 9!17 11!+D 17!8< ;1 ; D 1*99 7<<D; <1+

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Total e6uity of the ank as on 71!1*!*++9 #as Tk!8+<9!+9 million on 71!1*!*+1+, #hich #as 17!9:K of the .isk #eighted Assets 1+!++K! The core capital #as 1*!+8K of .isk #eighted Assets as on 71 st 1ecem er *+1+ as against re6uirement of ;K! *!11 Ca3ital Ade<uacy Position f!o$ 2;;2 to2;1;. 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2006 2007 2008 2009 2010 Requirement Actual as against the re6uirement of

=*i#u!e in $illion T4.> *i#u!e: Ca3ital Ade<uacy Position f!o$ 2;;2 to2;1;.

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CHAPTER THREE
+N0E%T"ENT PROCE/?RE O* %HAHA,A'A +%'A"+ -AN.

+N0E%T"ENT PROCE/?RE O* %,+-'

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+nvest$ent
The special feature of the investment policy of the Islamic anking is to invest on the asis of profit loss sharing system in accordance #ith the tents and principle of Islamic shariah! 2arning profit is not only motive and o jective of the anks investment policy rather emphasis is given is attaining social good and in creating employment opportunity! Pursuant to the investment policy adopted y the ank a D years perspective investment plans aims at diversification of the investment portfolio y si)e, sector, geographical area, economic purpose and securities to ring in phased all sectors of the economy and all types of economic groups of the society #ithin the fold of anks investment operations! According the plan envisages composition of the investment portfolio #ith for agriculture and rural investment, 1<K for industrial term investment, 18K for industrial #orking capital <K for housing and real estate, <K for transport and communication, *K for electricity, gas, #ater and sanitation services, * K for storage-s 8+K for import and local trade related activates and 1K for other productive purposes y the end of the plan period i!e! the year *++*!

.1 +nvest$ent Policy of %,+-'

Investment operation of a ank is very important as the greatest share of total generates from it! /a&imum risk is centered in it and the very e&istence of a ank mostly depends on prudent management of its investment port folio! "or efficient deployment of mo ili)ed resources in profita le, safe and li6uid sector a sound, #ellC defined and appropriate investment policy in necessary! The important feature of the investment policy of the ank is to invest on eh asis of profit L loss sharing system in according #ith the tenets and principle of Islamic shariah! 2arning of profit is not the only motive and o jective o the ank investment policy rather emphasis is given in attaining social good and in creating employment opportunities!

.2

+nvest$ent objective of %,+-'

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Investment Procedure Of Shahjalal Islami Bank Limited

The objectives and 3!inci3les of invest$ent o3e!ation of the ban4s a!e: The investment fund strictly in accordance #ith the principle of Islamic Shariah! To diversifies its portfolio y si)e of investment, y sectors ?pu lic and private@, y economic purpose, y securities and y geographical area including industrial, commercial and agricultural! To ensure mutual enefit oth for the ank the investment client y professional appraisal of investment proposals, judicious of investment, close and constant supervision and monitoring therefore! To make investment keeping the socialC economic re6uirement of the country in vie#! To increase the num er of potential investors y making participatory and productive investment! To do a#ay #ith disparity and esta lish justice in trade, commerce and Industry! To diversify its investment portfolio y si)e of investment portfolio y sectors ?Pu lic (Private@, y economic purpose, y securities and y geographical area including industrial, commercial ( agricultural! To ensure mutual enefit oth for the ank and the investment client y professional appraisal of investment proposals, judicious sanction of investment, close and constant supervision and monitoring thereof! To make investment keeping the socio economic re6uirement of the country in vie#! To increase the num er of potential investors y making participatory and productive investment! To finance various development schemes for poverty alleviation, income and employment generation #ith a vie# to accelerate sustaina le socioC economic gro#th and enlistment of the society! To invest in the form of goods and commodities rather than give out cash money to the investment clients! To contri ute to social enlistment and sustained 2conomic gro#th of the country! To ensure avoid all the investment for idden y the Islamic Shariah!

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. %alient featu!es of invest$ent

O serving of the legal investment limit of the ank! O servance of the legal investment limit of the client! Optimum utili)ation of invest a le fund! Profita le of the investments! Safety and security of the investments! Investment at minimum possi le risk! Li6uidity of investments! 3onform to central ank-s investment restrictions! Preference to short term investment restrictions! Preference to the investments for small si)e! Satisfactory return on investments! To take in vie# inter alia the follo#ing points #hile considering an investment proposal! Sector and sectoral performance! /anagement of the company! Location of the company! /arket demandAsupply gap, importAe&port position, consumption trend! 3ash flo# position! "inancial or internal rate of return! Infrastructure facilities in and around the proposed project!

.&Co$3osition of the 3o!t@ folio

"ollo#ing may e the compositions of the investment portC folio of the ank' a! /oney /arket PortC"olio ?=aving Tenor >p To The 0ear@ ! 3apital /arket Port "olio ? =aving Tenor A ove One 0ear@ c! Beneral Investment Port "olio

.1 "oney A Ca3ital "a!4et Po!t@ *olio

The ank is re6uired to maintain as statutory cash reserve and lia ility re6uirement, a portion of its deposit lia ility in account #ith the central ank and in approved securities! Beside, the ank, at ank, at its o#n discretion, may also invest in securities a portion of list mo ili)ed #ith a vie# to' a! 2nsure regular return! ! Avoid invest a le surplus! c! 1iversify the overall portCfolio!

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.2 6ene!al $a!4et 3o!t folio

Beneral investment portCfolio is not only the major portC folio of the ankM it also contri utes the greatest share of the total revenue generates from all assets of the ank! Besides, it is the general investment function #here the ank Ngenerally accepts the greatest risk! The failure of a commercial ank is usually associated #ith the pro lem in the general investment portC folio and is less often the result of shrinkage in the value of other assets! Precisely speaking most of the anks resources are committed to general investments the ulk of their revenue is generated y it and the ma&imum risk is centered in it! As such this port folio not only fractures dominants in the asset structure of the ank, it is also critically important to the success of the ank!

.5 +$3o!tant of assessin# invest$ent needs

Assessment of investment needs is necessary for the follo#ing resources! To detect actual investment limit of ank! To assess the 6uality, 6uantity, price, and marketa ility of the commodities! To ensures proper follo# up supervision and monitoring of the investment! To ensure capacity of the client in handing investment activities! To ensure trading instead of leading of money! To ensure payment against delivery of goods! To ensure actual uying and selling of goods! To select proper and genuine investment client! To ensure via ilityA profita ility of the project! To ensure compliance of Shariah principle! To secure the investment! To allo# investment for appropriate period! To ensure investment for productive purpose! To kno# the o jective of investment To ensure #elfare of the society! To ensure Business ethics! To minimi)e the risk of investment! To ensure recovery of investment in time!

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.9 %t!ate#ies
.isk is the investment and return there on are interrelated! An investment policy that emphasi)es a high return must accept reality high risk! 3onversely an investment policy that #ill tolerate only small amount of risk must e prepared to accept a relia ility lo# return! As such it is really difficult #hether to select a high return port folio #hy high risk of lo# risk portC folio #ith a lo# return! 4evertheless, considering all aspects follo#ing guidelines shall e follo#ed as strategy for anks investments! 1. If t#o portCfolios have the same risk ut different returns, the port folio having higher return shall e preferred! 2. If the t#o portC folios have the same e&pected returns, ut different degree of risk the portfolio #ith lo#er risk shall gets preference! . If on me port folio has oth a higher return and a lo#er risk than another, the first portfolio shall e referred! &. Heeping in vie# the risk factor, the ank shall maintain fle&i ility in determination of rate of return on investment in case to case asis in consideration of the risk element involved in the respective investments! 1. 2mphasis is given for e&pansion and strengthening cottage and small industries sector and rural industries! This immensely potential industrial su sector shall create employment opportunities to rural and semi ur an population and shall have positive contri ution in employment and income generation and poverty alleviation of the lo# income group! 2. Investment facilities shall e e&tended for esta lish and e&pansion of e&ports oriented for#ardA ack #are linkage and import su stitution industries! 5. Safety, security, profita ility, and li6uidity of ank investment! 9. 2ach ranch invests at least ;+K of its deposit locality! :. 2nhance of e&tending limit of good investment clients! 1;. Adopting of modem technology! So anks investment policy investment planning and investment udgeting till a situation change improves shall aim at promotion of 6uality general investment!

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.: +nvest$ent P!ocedu!e of %,+-'

Benerally a ank takes certain steps to deliver its proposed investment to the client! But the process takes deep analysis! Because anks invest depositors fund, not ankso#n fund! If the ank fails to meet depositors demand, then it must collapse! So, each ank should take strong concentration on investment proposal! =o#ever, Shahajalal Islami Bank Limited ?SFIBL@ makes its investment decision through successfully passing the follo#ing crucial steps'

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.1; %election of the client

=ere, investment taker ?client@ approaches to any of the ranch of Shahjalal Islami Bank Limited ?SFIBL@! Then, he talks #ith the manager or respective officer ?Investment@! Secondly, ank considers five 3-s of the client! After successful completion of the discussion et#een the client and the ank, ank selects the client for its proposed investment! It is to e noted that the clientAcustomer must agree #ith the ank-s rules ( regulations efore availing investment! Benerally, ank analyses the follo#ing five CBs of the client' Cha!acte! Ca3acity Ca3ital Collate!al and Condition

.11 A33lication sta#e

At this stage, the ank #ill collect necessary information a out the prospective client! "or this reason, ank informs the prospective client to provide andAor fill duly respective information #hich is crucial for the initiation of investment proposal! Benerally, here, all the re6uired documents for taking investment have to prepare y the client himself! 1ocuments that are necessary for getting investment of SFIBL are prescri ed elo#' I! II! III! II! I! II! III! Trade License photocopy ?for proprietorship@M A ridged pro forma income statementM Attested copy of partnership deed ?for partnership usiness@M Prior three ?+7@ years- audited alance sheet ?for joint stock company@M Prior three ?+7@ yearsusiness transactions statement for the musharakaAmudara a investmentM A ridged pro forma income statement for the musharakaAmudara a investmentM Attested copy of the /emorandum of Association ?/OA@ ( Articles of Association ?AOA@ for the joint stock companyM

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IIII! IO! O!
OI!

Attested copy of the Ta& Identification 4um er ?TI4@C including final assessmentM Tenders of the proposed assets ?in case of =PS/@M 1etailed summary of the sundry de tors and creditors ?including oth time ( schedule@M
Summary of the personal mova le ( immova le assetsM and others!

.12 A33!aisal sta#e

At this stage, the ank evaluates the client and hisAher usiness! It is the most ank important stage! Because, on the asis of this stage, ank usually goes for sanctioning the proposed investment limitAproposal! If anything goes #rong here, the suddenly stops to make payment of investment! In order to appraise the client, Shahjalal Islami Bank Bangladesh Limited ?SFIBL@ provides a standard "C1<DB "orm ?Appraisal .eport@ to the client for gathering all the information! The original copy of the appraisal report is enclosed in the appendi& chapter! =o#ever, the follo#ing contents are presented from that appraisal report' A! 3ompany-sA3lient-s Information! B! O#ner-s Information! 3! List of PartnersA1irectors! 1! Purpose of InvestmentA"acilities! 2! 1etails of Proposed "acilitiesAInvestment! "! Break up of Present Outstanding! B! Other Lia ilities of the 3lientABroup! =! Previous Banker-s Information! I! 1etails of SisterAAllied 3oncerns! F! Allied 1eposit as on! H! BusinessAIndustry Analysis! L! .elationship Analysis! /! AssetCLia ility position of the client as per Audited Balance Sheet! 4! Eorking 3apital Assessment! O! .isk Brade! P! Particulars of the godo#n for storing /PIA/ura aha goods! J! Insurance 3overage! Investment Procedure Of Shahjalal Islami Bank Limited
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.! Audit O servation!
S! Security Analysis

.1 %anctionin# sta#e
At this stage, the ank officially approves the investment proposal of the respective client! In this case client receives 1. +nvest$ent 'i$it in $illion. 2. "ode C a$ount of invest$ent. . Pu!3ose of invest$ent. &. Pe!iod of invest$ent. 1. Rate of !etu!n. 2. %ecu!ities: a. P!i$a!y@ Stock of goods is the primary security! i! L3ABills' .elated 1ocuments! ii! /ura aha Post Investment ?/PI@ABaiC/ura aha' Pledge of /PIABaiC/ura aha goods! iii! /PIABaiCBai /ura ahaCT.' Lien on goods to e released! b. PCashA6oodsC i! BaiC/ura aha' *;K cash security on cost price to su se6uently converted to goods security! ii! T. ?Trust .eceipt@' Eithout cash security! c. Collate!al: Immova le properties! e ank-s sanction letter! Shahjalal Islami Bank Bangladesh Limited ?SFIBL@-s sanction letter contains the follo#ing elements'

CashA6oods secu!ity In allo#ing /ura aha investment and amount of cash security is generally reali)ed from the client ?amount depends on the nature of goods, credit#orthiness of the client, collateral security o tained etc!@ #hich is converted to goods security after purchase of goods purchased out of ank-s investment and client-s cash security is pledged to the ank, kept under ank-s custody efore its delivery to the client on payment!

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E8a$3le: If, for a /ura aha investment cash security is fi&ed at *;K Bank-s investment stands at D;K on the total goods purchased! "or e&ample, if cost of total goods purchased is Tk!1+++++ Bank-s investment #ill e Tk!D;+++ and client-s cash security #ill e Tk!*;+++!
-an4 Tk! D;+++ ?D;K@ Client Tk! *;+++ ?*;K@ Total cost of #oods Tk! 1+++++ ?1++K@

.1& /ocu$entation sta#e

At this stage, usually the ank analyses #hether re6uired documents are in order! In the documentation stage, Shahjalal Islami Bank Limited ?SFIBL@ checks the follo#ing documents of the client' I! II! III! II! I! II! III! IIII! IO! O! OI! OII! OIII! Ta& Payment 3ertificate! Stock .eport! Trade License ?rene#al@! IAT certificate Lia ility statement from different parties! .eceiva le from different clients! Other assets statement! Aungykar 4ama! Bhosona Potra! Three ?+7@ years net income ( usiness transactions! Performance report #ith the ank! Account Statement "orm of the ank! Ialuation 3ertificate a! Particulars of the Proposal! ! Particulars of the /ortgagor! c! Particulars of the Properties! OII! OI! Outstanding lia ility position of the ank! 3IB ?3redit Information Bureau@ .eport!

.11 /isbu!se$ent sta#e

Investment Procedure Of Shahjalal Islami Bank Limited

Page *7

At this stage, ank decides to pay out money! =ere, the client gets hisAher desired fund or goods! It is to e noted that efore dis ursement a $site plan% sho#ing the e&act location of each mortgage property needs to e physically verified!

.12 "onito!in# C Recove!y sta#e

At this final stage of investment processing of the Shahjalal Islami Bank Limited ?SFIBL@, ank #ill contact #ith the client continually, for e&ampleC ank can o tain monthly stock report from the client in case of micro investment! =ere, the ank #ill keep his eye on over the investment taker! If needed, ank #ill physically verify the client-s operations! Also if ank feels that anything is going #rong then it tries to recover its investment fund from the client!

.15 APPRO0A' PROCE%% *'O( CHART

B.A43= /A.H2TI4B T2A/ =EDEC?T+0E%> O**+CER%> =2A1 O" B.A43= ?APP.OIAL A 123LI42@ AS PER DELEGATION -E)ON/ CAPAC+T) RECOMMENDED TO
=2A1 O" 3O.PO.AT2 CO""ERC+A' -AN.+N6 ="AR.ET+N6>

BOA.1 O" 1I.23TO.S =APPRO0A' A /EC'+NE>

-E)ON/ CAPAC+T) RECO""EN/E / TO 2O23>TII2 3O//ITT22 O" THE BOARD OF DIRECTORS =APPRO0A' A /EC'+NE> A% PER /E'E6AT+ON
-E)ON/ CAPAC+T) RECO""EN/E / TO

*o!7a!ded to

/1 ( 32O

=2A1 O" I4I2ST/24T ?APP.OIAL A 123LI42@ A% PER /E'E6AT+ON

?APP.OIAL A 123LI42@ AS P2. 12L2BATIO4

-E)ON/
CAPAC+T)

RECO""EN/ E/ TO

1/1
=APPRO0A' A /EC'+NE> A% PER Investment Procedure /E'E6AT+ON

Of Shahjalal Islami Bank Limited

-E)ON/ CAPAC+T) RECO""EN/E / TO

Page *8

.19 +nvest$ent %che$es of %,+-'

The salient features of the investment policy of Shahjalal Islami Bank Limited are to invest on the asis of profit and loss sharing system in accordance #ith the tenets and principles of Islamic Shariah! Profit earning is not the only motive and o jective of the ank-s investment policy rather emphasis is given in attaining social good and in creation employment opportunities! In fact, the ank since its inception has een #orking for the uplifted and emancipation of the unprivileged, do#ntrodden, and neglected section of the people and has taken up various schemes for their #ell eing! The o jectives of these schemes are to raise the standard of living of lo#Cincome group, development of human resources, and creation of a#areness for self employment!

.1: Household /u!able %che$e

In a developing country like Bangladesh people of middle and lo#er middle class especially service holders #ith limited income find it difficult to purchase articles like refrigerator, television, cot, almirah, #ardro e, sofaCset, pressure cooker, se#ing machine etc! #hich are part of modern and decent living! They can not enhance the standard and 6uality of life to the desired level due to the constrain of their limited income! Shahjalal Islami Bank Limited has, therefore, introduced =ousehold 1ura les Investment Scheme #hich has already created great enthusiasm among the people and received tremendous response from them! !%co3e of +nvest$ent =ouse O#ners 1octors, 2ngineers, Architects, 3hartered AccountantsA"3/A and other important professionals! Investment 3lients of SFIBL 1eposit 3lients of SFIBL Shopkeepers and usinessman

Investment Procedure Of Shahjalal Islami Bank Limited

Page *;

 Eage earners, Panel la#yers of SFIBL 3(" Agents enlisted in "SIBL etc! Braduate ( PostCBraduate Students of >niversities, /edical 3olleges, 2ngineering 3olleges, >niversity 3olleges for purchase of P3, /edicalA2ngineering 26uipmentA/achinery, Books etc! In case of Bovernment, SemiCBovernment and Autonomous Organisations the age of the investment clients must e *; and a ove #ith at least three years of service and he must have at least three years of service prior to his retirement! In case of private organisations, teachers of school, collage and madrashas the age of investment clients must e in et#een 7+C;+, #ith at least five years of service and he must have five years of confirm service prior to his retirement in the same organisation! In case of others e&cept service holders the age limit must e #ithin *DC<+ years! In case of students the minimum age must e 1: years and ma&imum *; years!

A$ount fo! invest$ent

"or doctors, 2ngineers, Architects, 3hartered Accountants, "3/As the 3eiling of the investment of the Bank #ill e C a! 1haka 3ity' /a&imum Tk!7, ++,+++!++ ! Other /etropolitan 3ities' /a&imum Tk!*, ++,+++!++ c! Other /unicipal Areas' /a&imum Tk!1,++,+++!++

"or 1epositors Tk! *,++,+++!++ "or others' Tk!1,++,+++!++ 43Os of Bangladesh Armed "orces, Teachers of Primary Schools, Private School ( 3olleges and other professionals' /a&imum Tk! 7;,+++!++ "or Students ' /a&imum Tk! 8+,+++!++

Investment Procedure Of Shahjalal Islami Bank Limited

Page *<

Rate of Retu!n: 1<K Pe!iod of +nvest$ent: /a&imum t#o years "ode of +nvest$ent: BaiC/uajjal

.2; Housin# +nvest$ent %che$e

One of the asic human needs is to have a house to live in! A house is an a ode of peace and happiness! =ousing has no# ecome an acute pro lem in the country, especially in the to#ns, cities and metropolis! Eith their limited income, it has ecome almost impossi le on the part of the lo#er middle class, middle class and sometimes, even for upper middle class to solve their housing pro lem! To meet this asic human need, Shahjalal Islami Bank Limited is committed to contri ute to this end to provide a peaceful and happy living! The Bank has introduced EHousin# +nvest$ent %che$eE #ith the o jective to ease and minimi)e the housing pro lem and assist service holders and professionals #ith limited income in materiali)ing their dream of ecoming o#ner of houses!

Ta!#et A!ea'
At the initial stage, the Scheme is eing implemented in' 1haka metropolitan area! 3hittagong metropolitan area!

%co3e of +nvest$ent
Investment is to e e&tended to uild ne# houses on the client5s o#n land, to purchase uilt housesA apartmentsAflats and for e&tensionA completion of the house constructedAunder construction! The uilding to e constructed on the land must e as per approved plan of the competent authority of that area, vi)! .AQ>H, 31A, .1A, H1A etc! The amount of investment #ill e limited to the follo#ing' a@ In case of construction on land o#ned y the client' ma&imum <+K Investment Procedure Of Shahjalal Islami Bank Limited

Page *D

of the total cost of the construction of the uilding! /a&imum ceiling of the Bank5s investment #ill e Tk! 7+!++ lac @ In case of purchase of apartmentAflatAreadyCmade house' ma&imum ;+K of the value including purchase related cost! /a&imum ceiling of the Bank5s investment #ill e Tk! *+!++ lac! c@ If any client intends to provide the follo#ing securities to the Bank duly dischargedA completing necessary formalities y him, Bank may allo# further or additional investment in e&cess of the aforesaid ceiling to the e&tent of 1++K of the value of the securities' T1. ( /udara a Savings Bond of Islami Bank Bangladesh Limited, T1.A"i&ed 1eposit of any scheduled Bank, Eage 2arners Bond, I3B >nit 3ertificates, 4ationalA1efence Savings BondsA Sanchaypatra etc!, Bank Buarantee from any scheduled Bank! Rate of Retu!n: 1<K

"ode of +nvest$ent: =ire Purchase under Shirkatul /elk ?=PS/@

Real estate +nvest$ent P!o#!a$

Professionals, ServiceCholders, Businessmen, .eal 2state 1eveloper and other categories of people #ho are not entitled for availing investment facilities under =ousing Investment Scheme, shall e eligi le under this Programme! Investment is to e e&tended to uild ne# houses and for e&tensionA completion of the house already constructed, commercial uilding, shopping comple&, flatAapartment etc! Rate of Retu!n: 18!;K "ode of +nvest$ent: =PS/ +nvest$ent 'i$it: 4o specific limit /u!ation: 1+ years

Investment Procedure Of Shahjalal Islami Bank Limited

Page *:

.21 T!ans3o!t +nvest$ent P!o#!a$

The role of modern communication is most vital for the socioCeconomic gro#th and uplift of a developing country like Bangladesh! A sound and efficient communication net#ork is the preCre6uisite for sustained development through the e&pansion of trade, commerce and industry! In this ackdrop the demand for road and #ater transports has increased manifold throughout the country! /oreover, the use of modern transports has increased keeping pace #ith the rise of the standard of living of the professionals! 3onsidering all these facts, Shahjalal Islami Bank Limited has introduced ET!ans3o!t +nvest$ent %che$eE! >nder this scheme investment on easy terms is eing e&tended to the e&isting successful usinessmen in road and #ater transports and potential entrepreneurs in this sector for different types of road and #ater transports! Besides, /ultinational companies, esta lished usiness houses and #ell to do officials and professionals can ecome o#ner of various kinds of transports through =ire Purchase under this scheme!

"ode of T!ans3o!ts
Road T!ans3o!ts Private car, micro us, jeep, pickCup van! Bus, truck, mini us! AutoCricksha#, tempo! Am ulance! (ate! T!ans3o!ts

3argo vessel of ma&imum ;++ ton capacity! Ocean going vessel of ma&imum :++ ton capacity!

Ta!#et 6!ou3
-usAT!uc4A"inibus usiness and Successful individualA usinessmanAfirm engaged in transport potential individualA usiness! P!ivate Ca!A"ic!obusA,ee3
Page *9

usinessmanAfirm #ho intends to takeCup transport as

Investment Procedure Of Shahjalal Islami Bank Limited

 Permanent Officials of Bovernment, SemiCgovernment, Autonomous Bodies, 3orporations, Banks and "inancial Institutions! 2sta lished Businessman and Business 2sta lishments! Officials of 1efence "orces! Professionals' >niversity Teachers, 1octors and 2ngineers! 2&perienced PersonA"irm engaged or interested in transport usiness ?.entCaCcar@! Preference #ill e given to those person and firms #ho are already engaged in transport usiness! Rate of Retu!n: 1;K "ode of +nvest$ent: =ireCPurchase Shirkatul /eelk ?=PS/@!

A$ount of -an4Es +nvest$ent and ClientEs /o7n Pay$ent

Ty3e of T!ans3o!t ClientEs

-an4Es "a8i$u$ +nvest$ent do7n

Pay$ent 1! *! Private 3arAFeep 7+K BusATruckA/iniC us 8+K Ehile ascertaining Bank5s investment to service holders it should e kept in vie# that the amount of monthly instalment does not e&ceed 8+K of his total salary! <+K D+K

.22 %$all -usiness +nvest$ent %che$e

Shajalal Islami Bank, as #elfare oriented financial institution, is committed to generate employment and ring a out an overall improvement in the socioCeconomic condition of the people and the 6uality of their life! The Bank, to make effective contri ution in this respect, has takenCup a special programme and introduced 5Small Business Investment Scheme5 to make the small traders, entrepreneurs and neglected unemployed youths of ur an and rural areas selfCreliant y providing them re6uired financial

Investment Procedure Of Shahjalal Islami Bank Limited

Page 7+

support! The follo#ing enefits #ill e achieved through implementation of this Scheme! Bradually it #ill help to alleviate poverty and minimi)e unemployment! It #ill help small traders and entrepreneurs to ecome selfCreliant and to improve their 6uality of life through capital formation! It #ill create opportunity for the unemployed youths to engage themselves in inC come generating activities! It #ill help to e&pand the market for locally produced goods productivity of small traders and entrepreneurs! y increasing

%ecto!s of +nvest$ent
Livestock "ishery AgroCprocessing /anufacturing TradingAshop keeping Transport Services Agriculture Implements and "orestry Others!

.2 CN6 Conve!sion +nvest$ent

3onvert your vehicle into 34B system C reduce fuel cost C save money! Plan to convert your car at 34B system! Eorried a out conversion costR 4o pro lem, Shahjalal Islami Bank is eside you to solve the pro lem! 0es, you may avail investment facility of Shahjalal Islami Bank under 34B 3onversion Scheme at a very easy terms ( 3onditions! Interested vehicle o#ner are re6uested to contact any of the ranches of the ank for availing the facility #ithin shortest possi le time!

Investment Procedure Of Shahjalal Islami Bank Limited

Page 71

Eli#ibility
Any permanent salaried e&ecutives of 3orporate =ouses, .eno#ned Private 3ompanies, Banks, 4B"I, /ulti 4ational 3ompany?s@, .eno#ned 4BOs, Bovernment Office, SemiCBovernment and Autonomous Bodies! SelfCemployed persons like 1octors, 2ngineers, 3harted Accountants, etc! Eorthy usinessman having trade license, IAT certificate and TI4! Ceilin#: Pe!iod: P!ofit Rate: B1T 8+,+++ to B1T 1,++,+++! /a&imum 1: months! /ost competitive in the market!

%3ecial *eatu!e: 4o do#n payment re6uires

.2& Ove!seas E$3loy$ent +nvest$ent %che$e

Ee salute ( pay regards to the #age earners, contri uting to the gro#th of national economy in terms of their remittance sent from a road! Is it your dream to go a road for employmentR 0es, ut cost of passage is the hindranceR Shahjalal Islami Bank is here to make your dream true! Please visit our ranches ( take the chances!

Eli#ibility
Any Bangladeshi 3iti)en intends to go a road #ith employment under genuine #ork permit Iisa! +nvest$ent A$ount: Pe!iod: A#e:

/a&imum Tk!7,++,+++AC /a&imum 7< months #ith +* ?t#o@ months moratorium period! 1: years to 8; years

Investment Procedure Of Shahjalal Islami Bank Limited

Page 7*

Re3ay$ent "ode: 26ual monthly installments! P!ofit Rate: 18!++K per annum

%3ecial Condition
The client #ho #ants to avail this facility must maintain "Ac Account #ith us till full adjustment of the facility!

.21 +nvest$ent %che$e fo! /octo!s

1octors you kno# #hat5s stopping you from performing checkCup your practice financesR Ehether you need to set up or renovate your 3ham er, 3linic or 1iagnostic 3enter #ith necessary medical 26uipments or to purchase personal necessary medical 26uipments 1on5t miss out the opportunity to take Shahjalal Islami Bank5s Investment facility for doctors #ithin shortest possi le time!

Eli#ibility
Bangladeshi salaried or a self employed 1octor having at least *?t#o@ years professional e&perience!

Ceilin#
/a&imum Tk!;, ++,+++AC for Beneral 1octors! /a&imum Tk! 1 +, ++,+++ACfor Specialist 1octors! Pe!iod: A#e : /a&imum <+ months! *; to <+ years!

Re3ay$ent "ode: 26ual monthly installment! P!ofit Rate: /ost competitive #ithin your reach!

.22 +nvest$ent %che$e fo! E8ecutives

1o you #ant funds readily availa le to e granted for your any unforeseen e&penditures #henever you desire or needM e it a sudden vacation that you plan #ith your family or urgent funds re6uired for medical treatment or purchase of furniture or house hold appliances, or house renovation ( interior decoration, marriage in family or advance rental payment, =igher education Investment Procedure Of Shahjalal Islami Bank Limited
Page 77

( trainingR Shahjalal Islami Bank Investment Scheme for e&ecutives is the ans#er to your 6uestions!

Eli#ibility
Any Bangladeshi salaried e&ecutives of 3orporate =ouses, Banks, 4B"I, /ulti 4ational 3ompany?s@, Bovernment Office ( SemiCBovernment Office can avail this facility! +nvest$ent A$ount: Pe!iod: A#e:

/a&imum Tk! 1+,++,+++AC /a&imum 7< months! ** years to <+ years

Re3ay$ent "ode: 26ual monthly installments! P!ofit Rate: /ost competitive #ithin your reach!

.25 +nvest$ent %che$e fo! "a!!ia#e

1o you #ant the est memories of the marriage day of yourself or your loving daughterA sonA sisterA rother to cherishR 1o you #ant to cele rate the marriage day #ith pride and joyR But also #ant to make sure that all arrangements are made #ell in advance ( every comfort meticulously provided forR Shahjalal Islami Bank /arriage Investment Scheme can give you the relief for all!

Eli#ibility
Any Bangladeshi salaried or a self employed person having * ?T#o@ years professional e&perience +nvest$ent A$ount : Pe!iod: A#e :

/a&imum Tk!7,++,+++AC /a&imum 8: months! *; years to <+ years!

Investment Procedure Of Shahjalal Islami Bank Limited

Page 78

Re3ay$ent "ode: 26ual monthly installments! P!ofit Rate: /ost competitive #ithin your reach!

.29 +nvest$ent %che$e fo! Education

3hildren are the precious assets in one5s life around #hich all dreams cluster! 1o you dream in pursuing your children for higher education in the country or in a road to cherish the end resultR Is it, at the moment, out of your reachR

Shahjalal Islami Bank is here to make your dream true #ith Investment Scheme for 2ducation!

"uda!aba %avin#s Account

It is compulsory that every client must open a /udara a Savings account! 2ach client should uilt savings y #ay of deposit in this account a sum of Tk! 1+!++ each month for every Tk! 1,+++!++ of investment! 4o che6ue ook shall e issued against this account! /oney can e #ithdra#n from this account if there is no lia ility against the client!

Revie7 and Evaluation

The concerned ranch shall arrange meetings of the investment clients occasionally and evaluate the performance of the scheme and discuss pro lems and take steps to solve those pro lems! Some other financing mode of investment are practiced y Islamic anking are as follo#s@ 1! 1irect Investments *! Post Import Investment Investment Procedure Of Shahjalal Islami Bank Limited
Page 7;

7! Purchase and 4egotiation of 2&port Bills 8! Inland Bills Purchased ;! /ura aha Import Bills <! BaiC/uajjal Import Bills D! Pre Shipment Investment :! JuardCulC=asana ?Benevolent Investment@

CHAPTER *O?R
+N0E%T"ENT ANA')%+% O* %HAHA,A'A +%'A"+ -AN.
Investment Procedure Of Shahjalal Islami Bank Limited
Page 7<

Pe!fo!$ance of %hahjalal +sla$i -an4 'td +nvest$ent /ivision &.1 %ecto!@7ise Classification +nvest$ent:

Investment Procedure Of Shahjalal Islami Bank Limited

Page 7D

%ecto! t A#!icultu!eC *ishin# Cotton CTe8tile 6a!$ents Ce$ent Pha!$aceuticals C Che$icals Real Estate T!ans3o!t +T N-*+ %teel C En#inee!in# Pa3e! C Pa3e! P!oducts %e!vices +ndust!ies T!adin# +$3o!t *inancin# Consu$e! *inancin# %ha!e -usiness %taff +nvest$ent Othe!s Total 22: :;1 5&; 19: 52 12:5 22 ; :2 11&& 112 :1& 21;; 2 2: 2 2; &2 & 9; &91 :21 21&&;

2;11 A$oun Co$3osition nt ;.&&F 1&.5&F 12.;1F ;.:2F 1.2&F :.25F .2 F. ;.1&F 2.11F 1.;5F 1.11F &.;5F 1;. 5F 1;.2:F ;.2:F 92 25 9 125& 22& 5&5 &22 1 25 9 1:12 2229 :1 192& 25& 2:25 215

2;1; A$ou Co$3osition .92F 11. F 12.;5F ;.11F 1.5&F 1;.21F .11F ;.15F &. 2F 1.12F ;.9:F &.11F 9. 2F 2.51F ;.&:F :.2 F ;.5;F 11.1:F 1;;F

5.1 F &;1: ;.59F ;2 11.;2F 291& 1;;F & :19 =*i#u!e in $illion T4.>

Shajajal Islami Bank performed #ell in various sector and increased its investment for ma&imi)ation of profit especially cotton, garments, cement, real state, steel engineering, paper and paper product etc! Eithout the increasing of these investments such as agriculture and fishing and 4B"I has een decreased ecause in this sector did not provide more profits! Shajajal Islami Bank invested its ma&imum capital compared to lo#er capital in the sector cotton and te&tile, garments, Trading and import financing #hich rought ma&imum capital in *+11 compared to in *+1+! All the description is sho#n the ne&t page graphically'

Investment Procedure Of Shahjalal Islami Bank Limited

Page 7:

10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0

Agriculture& Fishing Cotton &Textile Gar ents Ce ent !har aceutical s & Che icals "eal #state Trans$ort %T &'F% ( teel & #ngineering !a$er & !a$er !ro)ucts ( er*ices %n)ustries Tra)ing % $ort Financing Consu er Financing ( hare 'usiness ( ta++ %n*est ent ,thers

2010

2011

Investment Procedure Of Shahjalal Islami Bank Limited

Page 79

&.2 6eo#!a3hical 'ocation@(ise +nvest$ent: A!ea

+nside in A$ount -an#ladesh +n Ru!al A!eas 1&;2 +n ?!ban &2112 A!eas

2;1;
Co$3osition .2;F :2.9;F 1& 19122

2;11
A$ount Co$3osition 1.&;F :&.2;F

%ub@Total
Outside -an#ladesh

& :19 in @ & :19

1;;F @ 1;;F

21&&; @ 21&&;

1;;F @ 1;;F

Total

=*i#u!e in $illion T4.>

Analysis:
60000 50000 40000 30000 20000 10000 0 2010 2011 %n "ural Areas %n -r.an Areas

=*i#u!e in $illion T4.>

On the asis of investment area, Shajalal Islami Bank invested in rural area 7!*+K in *+1+ and ;!8+K in *+11, in ur an area 9<!:+K in *+1+ and 98!<+K in *+11!The total amount #as 879;: million in *+1+ and <188+ million in *+11! So #e easily can say that SFIBL invests more in ur an areas!

Investment Procedure Of Shahjalal Islami Bank Limited

Page 8+

&. +nside in -an#ladesh: A!ea A$ount

/ha4a Chitta#on# %ylhet Rajshahi .hulna -a!ishal 52:: &5&2 529 152 15 @

2;1; Co$3osition A$ount

91.52F 1;.5:F 2.;;F 1.5&F 1. ;F ;.;;F 1122; 29:9 12 ; 11: 1;11 59

2;11 Co$3osition
9&.;2F 11.2 F 2.;;F ;.:1F 1.52F ;.12F

Total

& :19

1;;F
=*i#u!e in $illion T4.>

21&&;

1;;F

Analysis:
60000 50000 40000 30000 20000 10000 0 2010 2011 /ha0a C hittagong (1lhet "a2shahi 3hulna 'arishal

=*i#u!e in $illion T4.>

On the a ove graph it is clear that SFIBL invests more in 1haka ( 3hittagong!The investment composition in 1haka in *+1+ #as :;!D<K and in *+11 #as :8!+*K #hich s reduced 1!D8K ut increased in 3hittagong !88K in *+11 compared to *+1+!

Investment Procedure Of Shahjalal Islami Bank Limited

Page 81

&.& 6!ou3in# of invest$ent as Pe! Classification Rules of -an#ladesh -an4: A!ea A$ount
?nclassified %3ecial "ention Account %ubstanda!d /oubtful -ad o! 'oss & 21 19 51 @ :

2;1; Co$3osition A$ount

:9.2&F ;.&2F ;.15F ;.;;F 1.52F 2;;&1 22 12; 25; 5&2

2;11 Co$3osition
:5.5 ;. 2F ;.22F ;.&&F 1.21F

Total

& :19

1;;F

21&&;

1;;F

=*i#u!e in $illion T4.>

Analysis:
70000 60000 50000 40000 30000 20000 10000 0 2010 2011 -nclassi+ie) ( $ecial 4ention Account ( u.stan)ar) /ou.t+ul 'a) or 5oss

=*i#u!e in $illion T4.>

On the asis of grouping of investment as per classification rule of Bangladesh Bank, Shajalal Islami Bank involved in investment on unclassified amount #as 877<1 million in *+1+ #hich is 9:!<8K and <++8; million in *+11 #hich is 9D!D7K is less than *+1+! In other sector such as special mention account, Su standard, dou tful and ad or losses #ere 1:7, D;, +, 779, ?million@ in *+1+ and **7, 1<+, *D+, D8* ?million@ in *+11 respectively!

&.1 "odes of invest$ent of %hajalal +sla$i -an4:

Investment Procedure Of Shahjalal Islami Bank Limited
Page 8*

Total investment of the Bank stood at Tk! :+,;9* million as on 71!1*!*+11 as against Tk! <1,88+ million of 71!1*!*+1+ registering an increase of Tk19,1;* million, i!e 71!1DK gro#th! The Bank is careful in deployment of the fund! /ode #ise investment portfolio as on 71!1*!*+11 is given elo#'

?*+11@

&.2 T!end of invest$ent of %hajalal +sla$i -an4:

Investment Procedure Of Shahjalal Islami Bank Limited

Page 87

)ea! +nvest$ent 6!o7th

2;;5 2;212.21 @

2;;9 2:19.55 1:.15F

2;;: & :19.22 .1 F

2;1; 21&&;.;9 :.55F

2;11 9;1:2.&2 1.15F

=*i#u!e in $illion T4.>

=*i#u!e in $illion T4.> Investment is the main pillar to increase profits for any kind of financial organi)ation! Similarly SFIBL follo#s the same #ay to increase their profits y e&panding investment in the profita le sectors! SFIBL invested its capital in *++D, *++:, *++9, *+1+ and *+11 #ere *+<1<!<1, 7*91:!DD, 879;:!*<, <188+!+: and :+;9*!8< ?million@ respectively! =ere It is noticed that the investment has increased constantly from *++DC*+11!

&.5 O3e!atin# Result of %,+-':

1uring the year *+11, the Bank earned an amount of Tk! 1*,++<!:* /illion and spent an amount of Tk! 9,++:!97 million, resulting a Investment Procedure Of Shahjalal Islami Bank Limited
Page 88

Total Operating Profit of Tk! *,99D!:9 million #hich decreased y ;7+!:* million Over last year i, e! 71!1*!*+1+! "rom the operating Profit Tk! 71+!++ million #as kept as provision for investment, Tk! <7!++ million Provision #as kept for Off CBalance Sheets, Tk! *7D!;+ /illion provisions #as kept for diminution in value of investment In shares, and then profit efore ta& stood total *,7:D!79 million And deducting income ta&es of Tk! 1,*1:!9; million, 4et profit After ta&ation stood at Tk! 1,1<:!88 million! As appropriation of net Profit Tk! 8DD!8: million #as transferred to statutory reserve as per Bank 3ompany Act! 1991 and .emaining Tk! <9+!9< million #as Transferred to retained earnings! A summary of operating result of the ank as on 1ecem er *+11 visCaCvis The position of 1ecem er, *+ 1+ is sho# n elo#'C

=*i#u!e in $illion T4.>

Investment Procedure Of Shahjalal Islami Bank Limited

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CHAPTER *+0E
%?""AR) O* THE *+N/+N6%G CONC'?%+ON%G RECO""EN/AT+ON%

1.1 %u$$a!y of the *indin#s:

Investment Procedure Of Shahjalal Islami Bank Limited
Page 8<

Some points have een found out y screening the #hole study, #hich is e&pressed as major findings! The data have een analy)ed sincerely and carefully and tried to identify appropriate findings! After overall appraisal of SFIBL, the major findings are as follo#s' SFIBL reduces investment on agriculture ( fishing and 4B"T, Ehich hamper profit ma&imi)ation! SFIBL emphasi)ed its investments on ur an area greater than rural area! In the investment portfolio, investment against LA3, Juard, investment in scheme are very lo# ut in that sector there is pro a ility of going high profit! The investment of the ranch is too lo# in comparison to the total deposits of the ranch! The ank has given less emphasis on long term financing! Inade6uate training facilities for investment officers and their 6ualifications! As a result the investment officers do not manage investment properly due to their poor 6ualification! Investment is not dis ursed through proper assessment #hich increases the risk of recovery of the investment! Investment is not dis ursed in accurate time! As a result orro#ers cannot use that investment in particular sector #hich increases the uncertainty of recovery of the investment!

Investment Procedure Of Shahjalal Islami Bank Limited

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1.2 Conclusions:
Shahjalal Islami Bank Limited has maintained the progress of usiness through its Seventy "our ranches! The operating profits gro#th rate is satisfactory! The ank is a le to achieve this due to the ank-s etter services! Shahjalal Islami Bank Ltd! is committed to provide cordial services to the customers! The continuous improvement in delivery of products and services, diversification of products, reduction of turnaround time for investment processing, on line deposits, de it card, S/S PushCPull /o ile anking and arrangement of #estern union for early remittance payment have een the key indicator of customer-s satisfaction! As the ank-s profita ility depends to the 6uality services the ank can also apply the recommended services to gro# more profit!

Investment Procedure Of Shahjalal Islami Bank Limited

Page 8:

1. Reco$$endations:

SFIBL

should

initiate

different

investment

modes

according

to

changingAdiverse needs y conducting huge research and study! SFIBL should create a enchmark of the line against investment process and approval period! If they take too much time on investment process and approval period the clients may move else#here! SFIBL should increase investments on agriculture ( fishing and 4B"T, Ehich #ill help profit ma&imi)ation! The ank should emphasi)e on investment recovery system y effective field #ork! SFIBL should emphasi)ed investments on rural area #ith ur an area!

Investment Procedure Of Shahjalal Islami Bank Limited

Page 89

-+-'+O6RAPH) -oo4:
.ose Peter S, /cBra#C=ILL International 2ditionsC*++9, -an4 "ana#e$ent C *inancial %e!vicesH Si&th 2dition /adura FeffC 2ditionsC*++9 $*inancial "a!4et and +nstitution.H Seventh 2dition

"anual:
Shahjalal Islami Bank, Annual .eport *+1+,*+11

Ee site'
+nte!net I : Topic' Islami Banking, htt3:AA shahjalalban4.co$Aisla$icAinde8.as3 Ee site' ###!shahjalal ank!com! d

Investment Procedure Of Shahjalal Islami Bank Limited

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