Al-Arafah Islami Bank Ltd (AIBL) is one of the largest Banks in Bangladesh. Day by day AIBL has become a giant in the banking sector. It has two main divisions of operation-Corporate and General/Consumer Banking.

1. www.AssignmentPoint.com

2. Letter of transmittal
Date
Mr. Anisuzzaman
Lecturer,
School of Business
……… University
Subject: Submission of Internship Report.
Dear Sir,
I would like to thank you for your cooperation in preparing this report. It has been a great
opportunity for me to explore and learn the activities of foreign exchange procedures of ALArafah Islami Bank Ltd (AIBL).
The report contains the activities of foreign exchange department of AIBL. With out your help it
would have been difficult to complete this report. With deep gratitude, I also acknowledge the
cooperation provided by Mr. Rafik-ul- Islam (In charge) foreign exchange, for his utmost
supervision during my internship.
I would really appreciate if you enlighten me with your thoughts and views regarding this report.
If you have any enquiry about this report, I would be glade to answer you.
Yours sincerely
……………………..
www.AssignmentPoint.com

3. Acknowledgement
All praises to Almighty Allah for enabling me to complete the internship report on “Foreign
Exchange procedures of Al-Arafah Islami bank” successfully with a sound health condition.
I would like to express my deepest gratitude toward my internship supervisor Mr. Rafiq-UlAlam, Incharge, (Foreign exchange) for giving me necessary suggestions and helping me to
prepare this internship report.
I want to extend my special gratitude and thanks to Mr. Arif, senior executive officer, Foreign
exchange department, AIBL with out the special guidance of whom it would be impossible for
me to complete this report successfully. I am also grateful to Mr. Asaduzzaman , Head, Foreign
exchange for his excellent cooperation, support and contribution to make it worthy. There is no
doubt that because of their help, I as an inexperienced person was able to accomplish the report.
Finally, I tried my best to complete this report. I must say that as a freshman in banking sector
these few days are not enough to cover every aspects of banking and complete such a report.
There might be some mistake due to my limited aptitude. In this regard, I do believe to get a kind
consideration from every one.
www.AssignmentPoint.com

4. Preface
Theoretical knowledge becomes an effective tool when it is accompanied by practice. A perfect
co-ordination between theory and practice is of paramount importance in the context of the
modern business and economic world. In order to resolve the dichotomy between these two areas
school of business has introduced internship program. It brings the student closer to the practical
world and there by help us to substantiate our practical knowledge.
To prepare an internship report for BBA I choose Al- Arafah Islami Bank Ltd to do my
internship report for the period of three months starting from 15th January 2011 to 16th april
2011. I was placed at AIBL uttara branch where I worked in Foreign Exchange department. I
tried my level best to focus on my specific department and learn foreign exchange procedures.
My organization supervisor was Mr. Rafik-Ul-Alam (Incharge) foreign exchange. I prepared “ A
Report on Foreign Exchange Procedures of AIBL”. I worked under my academic supervisor Mr.
Anisuzzaman Lecturer,
School of business. Uttara University also approved and guided me to
prepare this working report.
As it is a working report, most of this information is based on the experiences that I have
gathered while working as an intern. This report describes about what the working procedures of
my department was, how my supervisor helped me on my works and finally what I have learned
from this internship program.
To draw a conclusion, I feel that I have tried my best to cover all significant dimension of the
topic. My all efforts would be meaningful and I would feel pleasure if the internship serves the
purpose effectively.
www.AssignmentPoint.com

5. Table of Contents
Page No
1.0 History of AIBL
5
2.0 Corporate Profile
5
3.0 Structure of AIBL (organization chart)
6
4.0 Corporate mission and vision
7
5.0 Business Objective
7
6.0 Financial Position at a glance
8
7.0 Capital Structure (sector wise investment)
9
8.0 Progressive Analysis
9
9.0 Product/ Service information
10
9.1 General Banking (Deposit Scheme)
10
9.2 Finance/ Investment
10
9.3 Foreign Exchange
11
10.1 Introduction of foreign exchange department
11
11.0 Function of foreign exchange department
11
11.1 Letter of credit
12
11.2 Export business
13
11.2.1 Pre-shipment finance
13
11.2.1.1 Back to back credit
14
11.2.1.2 Packing credit
14
11.2.2 Post-shipment finance
15
11.3 Import business
15
11.3.1 Procedure for sanction of post-shipment credit
15
11.4 Export and import performance of AIBL
16
12.0 Remittance
17
12.1 Inward remittance
18
12.2 Outward remittance
18
12.3 Performance of AIBL in remittance
18
13.0 Relationship with immediate supervisor
19
www.AssignmentPoint.com

6. 14.0 The level of responsibility
19
15.0 Problems encountered in handling tasks assigned
20
16.0 Competences and skills acquired in handling the job
20
17.0 Evaluate the performance of the tasks assigned
21
18.0 Major findings
21
19.0 Recommendation
22
20.0 Conclusion
24
Appendix
Appendix 1 : Form of Export (EXP Form).
25
Appendix 2 : Bill of Lading.
26
Bibliography
27
List of Figures
01. Structure of AIBL (Organization chart)
06
02. Capital structure
09
03. Export and Import performance
16
List of Tables
01. Financial Position Chart
08
02. Export and Import performance
16
03. Performance of Foreign Remittance
18
www.AssignmentPoint.com

7. Executive Summary
Al-Arafah Islami Bank Ltd (AIBL) is one of the largest Banks in Bangladesh. Day by day AIBL
has become a giant in the banking sector. It has two main divisions of operation-Corporate and
General/Consumer Banking. General banking deals with retail banking services to customers.
Banks perform this function in two ways-1 .taking deposits from various areas in different
forms.2 1ending that accumulated amount of money to the potential investors in other different
forms.
General Banking is the starting point of the entire bank operating. General Banking department
aids in taking deposits and simultaneously provides some ancillaries services. It provides those
customers who come frequently and those customers who come one time in banking for enjoying
ancillary services. In some general banking activities, there is no relation between banker and
customers who will take only one service form bank. On the other hand, there are some
customers with whom bank are doing its business frequently. It is the department, which
provides day-to-day services to the customers. Everyday it receives deposits from the customers
and meets their demand for cash by honoring cheques. It opens new accounts, demit funds, issue
bank drafts and pay orders etc. since bank in confined to provide the service everyday general
banking is also known as retail banking.
Under General Banking Division, I was working as an intern in the front desk. This department
mainly provides service by opening various deposit accounts, saving scheme to customers for a
wide variety of purposes. They are always on the run to search for new customers.
This report is based on finding out their way to satisfy the consumer as well as how AIBL is
financially performing. My overall objective of AIBL financial statement analysis is the
examination of financial position and returns in relation to risk. This must be done with a view to
forecasting the firm's future prospective.
At the end part of the report I have stated some recommendations, which I hope will be helpful
for ban to recover all the weaknesses.
www.AssignmentPoint.com

8. 1.0
History of Al-Arafah Islami Bank Limited (AIBL):
Islamic ideology encourages us to succeed in life here & hereafter. To achieve this success we
must follow the way dictated by the HOLY QURAN and the path shown by Rasul (SM). With
this goal in view Al- Arafah- Islami Bank Ltd was established (registered) as a public limited
company on 18 June 1995. The inaugural ceremony took place on 27 September 1995. The
authorized capital of the Bank is TK.5000.00 million of which the paid up capital is TK.
1,798.00 million. Some very renowned Islamic personalities and pious businessmen of the
country are the sponsors of the bank. The total paid up capital was invested locally. The Bank is
committed to contribute significantly in the national economy. It has made a positive
contribution towards the socio economic development of the country by opening 60 branches of
which 17 authorized dealer (AD) throughout the country. The equity of the bank stood at
TK.3,564 million as on 31 December 2010, the manpower was 1,296 and number of
shareholders was 11,382. The Bank conducts its business on the principles of Musaraka, Baimuazzal, and hire purchase transactions approved by Bangladesh Bank.
2.0
Corporate Profile of (AIBL):
With the objective of achieving success here & hereafter by pursuing the way directed by Allah
and the path shown by His Rasul (SM), Al Arafah Islami Bank Ltd was established (registered)
as a private limited company on 18 June 1995. The inaugural ceremony took place on 27
September 1995. The authorized capital of the Bank was Tk.5,000.00 million and the paid up
capital was Tk. 1,798 million as on 31.12.2010. Renowned Islamic Scholars and pious
businessmen of the country are the sponsors of the Bank. 100% of paid up capital is being owned
by indigenous shareholders. The equity of the bank stood at Tk. 3,564 million as on 31
December 2010, the number of employee was 1,296 and the number of shareholders was 11,382.
It has achieved a continuous profit and declared a good dividend over the years. High quality
customer service through the integration of modern technology and new products is the tool of
the bank to achieve success. The bank has a diverse array of carefully tailored products and
services to satisfy customer needs.
www.AssignmentPoint.com

9. The Bank is committed to contribute significantly to the national economy. It has made a
positive contribution towards the socio economic development of the country with 60 branches
as on 31.12.2010 of which 17 is AD (Authorized Dealer) throughout the country.
3.0
Structure of AIBL : (Organizational Chart)
Chairman
Vice-Chairman
Managing Director
Deputy Managing Director
Deputy Managing Director
Executive Vice President
Executive Vice President
Senior Vice President
Vice President
Assistant Vice President
Senior Principal Officer
Principal Officer
Senior Officer
Officer
Junior Officer
Assistant Officer
Guard/Peon
Figure 1: Organizational Flow chart of AIBL.
www.AssignmentPoint.com

10. 4.0
Mission & Vision of (AIBL):
Vision: To be a pioneer in Islamic Banking in Bangladesh and contribute significantly to the
growth of the national economy.
Mission:
 Quality financial services by adopting the latest technology.
 Fast and efficient customer service.
 Steady & competitive return on shareholders' equity.
 Innovative banking at a competitive price
 Attract and retain quality human resources.
 Involving more in Micro and SME financing
5.0
Business objectives:
 Achieve sound and steady growth in both mobilizing deposits and making quality
investment to keep the position as a leading Islami bank.
 To deliver financial services with to retail, small and medium scale enterprises, as well as
corporate clients through sufficient branches across the country.
 Design business initiatives to match the changing trade and industrial need of the clients.
www.AssignmentPoint.com

11. 6.0 Financial Position of AIBL (At a glance):
(In million taka)
Particulars
2006
2007
2008
2009
2010
Authorized Capital
1000.0
2500.00
2500.00
2500.00
5000.00
Paid up Capital
677.94
854.20
1153.10
1383.81
1798.95
Reserve Fund
542.22
835.98
1091.95
905.33
1223.18
1220.16
1690.18
2037.
50
2705.74
3564.73
Deposit
11643.66
16775.34
23009.13
29690.12
38355.50
Investment
11474.41
17423.19
22906.37
29723.79
36134.08
Import
12631.60
1882.14
27042.72
32685.13
34074.80
Export
4932.90
914.27
12714.91
20176.64
23546.10
Total Income
1452.68
2172.48
2955.61
4387.26
5643.86
Total Expenditure
904.48
1202.71
2199.43
2859.16
3146.17
Profit before Tax
548.20
855.47
756.18
1523.09
1729.83
Profit after Tax
262.90
470.02
347.31
668.24
858.99
Income Tax
215.10
385.45
235.53
590.66
590.66
Total Assets
15336.89
21368.17
30182.32
39158.44
48515.79
Fixed Assets
208.00
215.11
334.48
396.76
466.30
Earning per share
(Taka)
387.80
550.24
30.12
48.29
57.45
7.
4.
Shareholders Equity
Price equity ratio
(Times)
Dividend per share
91
89
14.62
9.5
11.23
3
26%
35%
20%
30%
38%
5402
4487
12013
10664
12876
771
912
1033
1080
1124
Number of Branches
45
46
46
50
64
Manpower per Branch
19
20
23
35
Bonus
No. of Shareholders
Number of Employees
39
Table 1 : Financial Performance of AIBL.
www.AssignmentPoint.com
4

12. 7.0 Capital Structure in 2010: (Sector wise Investment)
Sectors
Taka in million
(a) Agriculture & Forestry
(b) Industry
(c) Construction
(d) Water & Sanitary Service
(e) Transport & Communication
(f) Storage
(g) Trade Finance
(h) Miscellaneous
TOTAL
568
10,277
1,812
9.27
1,235
13.99
23,884
644
38,393.27
Figure 2 : Sector wise investment.
8.0
Progressive Analysis:
At the end of financial year 2010, the number of depositors stood at 3,43,273 and the amount of
deposit has accumulated to BDT 38,355.50 million. The total amount investment extended to a
sum of BDT 36,134.08 million. The investment income was BDT 4,004.54 million during the
year 2010 which registered a growth of 15.86% over the previous year. Investment income is
75.48% of the total income of BDT 5,305.63 million. The bank has the depositors BDT 2,667.34
million which is 66.61% of the investment income and 74.59% of the total expenditure for the
year 2010. It indicates 20.13% growth over the year 2009.
The scenario could be better understood by the following comparison:
AIBL in Year 2000
-Lack of revenue momentum
AIBL in Year 2010
-Revenue driven target or goal.
-Over layered organization
-Revenue diversification & sustainability
-Weak risk control environment
-Strong risk management culture in place
-Basic product offering
-Higher value-added , customized product
-High cost structure
-Cost efficiency
-Manual Banking
-Computerized Banking (Partly)
-Inefficient and Madrasha Educated
-Efficient
manpower
manpower.
and
www.AssignmentPoint.com
University
educated

13. 9.0
Product/Service Information:
Islamic banks render almost similar services to their customers that conventional banks do.
However, differences exist in administering incentives for depositors and charging for capital
investments, in so far as techniques of calculating the incentive or the cost of the capital are
concerned. Like a conventional bank, AIBL also accepts deposits from customers and advances
loans. The bank invests its funds for short as well as long term deposits. AIBL perform mainly
three different types of functions.
Product/ service
Information
General Banking
Investment
9.1 General Banking (Deposit Scheme):
 Individuals Account
 Joint Accounts
 Partnership Accounts
 Public/Private Limited Company Accounts.
 Different types of Deposit.
9.2 Finance/Investment:
 Cash Credit
 Secured Overdraft
 Bank Guarantee
 Long Term and Short Term Financing
 House Building Loan
9.3 Foreign Exchange:
www.AssignmentPoint.com
Foreign Exchange

14.  Non Resident Foreign Currency Account (NFCD)
 Non Resident BDT Deposit Account (NRTA)
 Resident Foreign Currency Deposit Account (RFCD)
 Foreign Currency Deposit Account
10.0
Introduction of Foreign Exchange Department :
Foreign exchange is the means and methods by which rights to wealth in a country's currency are
converted into rights to wealth in another country's currency. Foreign Exchange Department is
the international department Bangladesh Bank issues license to scheduled banks to deal with
foreign exchange. These banks are known as Authorized Dealers. If the branch is authorized
dealer in foreign exchange market, it can remit foreign exchange from local country to foreign
countries. So Al-Arafah Islami Bank (AIBL), Principal branch is an authorized dealer.
There are three kinds of foreign exchange transactions:
Foreign Trade
Export Business
Import Business
11.0 Functions of Foreign Exchange Department:
The main functions of Foreign Exchange department are:
 Issuing Letter of Credit
 Issuing Letter of Guarantee
 Issuing Back to Back L/C
 Purchasing Inland and foreign bills
 Trading foreign Currencies.
www.AssignmentPoint.com
Remittance

15. 11.1 Letter of Credit:
A letter of credit is a letter issued by a bank (known as the opening or the issuing bank) at the
instance of its customer (known as the opener) addressed to a person (beneficiary) undertaking
that the bills drawn by the beneficiary will be duly honored by it (opening bank) provided certain
conditions mentioned in the letter have been complied with.
Steps for opening letter of credit are:
(a) Customer application for opening L/C with indent or proforma invoice.
(b) Proposal preparation as per circular security of papers submitted by the importer (list
of papers).
(c) Sanction of proposal- Terms and conditions.
(d) Fill up the forms submitted by AIBL
(e) Security of LCAF, LCA, IMP, L/C advice copy.
(f) Realization of margin, commission, postage charges, register entry numbering, passing
of voucher.
(g) Passing of L/C by airmail, cable tale transmission, SWIFT.
(h) Opening of L/C file (marking/ preserving)
(i) Amendment of L/C (if required)
(j) Extra Precaution (including fund for import)
Parties to the L/C:
Importer
Issuing Bank
Who applies for L/C
It is the bank which opens/issues a L/C on behalf of the
Confirming Bank
importer.
It is the bank, which adds its confirmation to the credit and it is
done at the request of issuing bank. Confirming bank may or
Advising or Notifying Bank
may not be advising bank
It is the bank through which the L/C is advised to the exporters.
This bank is actually situated in exporter’s country. It may also
assume the role of confirming or negotiating bank depending
Negotiating Bank
upon the condition of the credit.
It is the bank, which negotiates the bill and pays the amount of
the beneficiary- The advising bank and the negotiating bank
www.AssignmentPoint.com

16. may or may not be the same. Sometimes it can also be
Accepting Bank
confirming bank.
It is the bank on which the bill will be drawn (as per condition
Reimbursing Bank
of the credit). Usually it is the issuing bank
It is the bank, which would reimburse the negotiating bank after
getting payment - instructions from issuing bank.
11.2
Export Business:
The goods and services sold by Bangladesh to foreign households, businessmen and Government
are called export. The export trade of the country is regulated by the Imports and Exports
(control) Act, 1950. There are a number of formalities, which an exporter has to fulfill before
and after shipment of goods. As a negotiating bank, it negotiates the bills and other shipping
documents in favor of the exporter. That is it collects proceeds of the export bills from the
drawer and credit the exporters account for the same amount. Sometimes bank purchase the bills
at discount from the local exporters and waits till maturity of the bill. In times of maturity, bank
presents it to the drawer to Ancash.
Exporters need finance in the following ways:
•
Pre-shipment finance.
•
Post-shipment finance.
11.2.1Pre-shipment Finance:
The exporters may obtain facilities during pre-shipment stage in the following ways:
•
Back to Back credit.
•
Packing credit.
11.2.1.1 Back to Back credit:
www.AssignmentPoint.com

17. Under this arrangement AIBL an export by opening a letter of credit on be half of the exporter
who has received a letter of credit from the overseas buyer but is not the actual manufacturer or
producer of the exportable goods. The letter of credit is opened in favor of the actual producer
with in or outside the country. Since the second letter of credit is opened on the strength of, and
backed by another letter of credit it is called back to back credit. The need for back to back credit
arises because the beneficiary may have to procure the goods from the actual producer who may
not supply the goods unless its payment is guaranteed by AIBL in the form of letter of credit.
Documents Required for Opening a Back-to-back L/C:
In AIBL Principal Branch, following papers or documents are required for opening a back-toback L/C:
1. Master L/C.
2. Valid Import Registration Certificate (IRC) and Export Registration Certificate (ERC).
3. L/C Application and LCAF duly filled in and signed.
4. Proforma Invoice or Indent.
5. Insurance Cover Note with money receipt.
6. IMP Form duly signed.
Payment of back to back L/C:
In case of maturity of back to back LC of 60-90-120-180 days, deferred payment is made.
Payment is given after realizing export proceeds from the L/C issuing bank.
11.2.1.2 Packing credit:
Packing credit covers the credit extended by AIBL to the exporters prior to the shipment of the
goods. Such credit is guaranteed to the exporters for the procurement and processing of raw
materials, manufacturing of finished products, packing or transporting goods meant for export to
foreign country. Such facility is allowed to an exporter just at the time when he has foreign
buyers order by the way of confirmed export letter of credit. When the order is executed, the
packing credit gets paid out of the proceeds of the bill drawn on the foreign buyer.
11.2.2 Post-shipment Finance:
www.AssignmentPoint.com

18. Post-shipment credit is given to the exporters by AIBL after the actual shipment of goods. The
necessity for post shipment finance arises because the exporters who have shipped goods have to
wait for a long time for receiving payment from the overseas buyers, the period of waiting
depends on the terms of payment. The exporters need fund to carry on normal export activities.
Finance is required for these activities. AIBL generally finance exporters at post shipment stage
on verification of the credit worthiness and financial soundness of both buyer and the seller.
11.3 Import Business:
•
International trade takes place between seller and buyer located in different countries.
The parties to a trade transaction are not always known to each other. Even if they are
known to each other the seller may not have the full confidence in the credit worthiness
of the buyer or the buyer may not like to pay before he actually receives the goods. Under
a banker’s letter of credit the issuing bank (AIBL) gives written undertaking on be half of
the buyer that the bank will honor the obligation of payment or acceptance on the
presentation of stipulated documents. Importer bank issue the letter of credit at a margin
prescribed by the Government. This margin varies from commodity to commodity.
According to government instruction the bank does not generally issue letter of credit less
than at 50% margin.
10.3.1 Procedure for sanction of post-shipment credit under document negotiation:
The usual method of providing finance at the post- shipment stage is negotiation under letter if
credit. In this regard AIBL carefully verify following points for negotiation documents:
•
The document should be presented for negotiation before expiry of the credit.
•
The amount of bill should not exceed the amount authorized in the L/C.
•
All the documents asked for in the L/C have been submitted.
Operation activities for import section: Officers in L/C opening desk process L/C application.
•
Internal Approval- It is made for those importers who are enjoying L/C limit facility
for a period of 12 months approval by head office.
www.AssignmentPoint.com

19. •
Head Office Approval- Proposal made on case to case basis in a detail format for those
importers during their initial 3 to 6 months period. Satisfactory performance in the
account would enable them to avail full fledge credit line on 12 month basis.
Next step is to open letter of credit:
•
An L/C number is provided.
•
Opening charges or commission recovered.
•
Charges and liability vouchers are passed.
•
Preparation and checking of L/C body in accordance with pro-forma (PI) invoice or
indent.
11.4 Export and Import performance of (AIBL)
Year
Total Export( In Million Tk)
Total Import ( In Million Tk)
2010
2009
2008
2007
2006
2005
2004
2003
2002
23546.10
20176.60
12714.90
9142.70
4932.90
3639.34
3075.52
1894.77
2524.63
34074.80
32685.10
27042.70
18821.40
12631.60
9337.49
7698.29
5162.51
5559.27
Table 2 : Export Import Performance
Total Export and Import: (In million Taka)
At the end of 2010, the total amount of
www.AssignmentPoint.com

20. foreign trade was 60,453.18 million Tk
showing a growth of 8.85%. The total export
of the bank was 20,176.64 m Tk in 2008,
which has increased by 16.70% to 23,546 m
Tk in 2009. Similarly the amount of import
has increased from 32,685.13 m Tk of 2008
to 34,074.80 m Tk in 2009. Experiencing a
a growth 0f 4.25%.
Figure 3 : Export & Import Performance.
12.0 FOREIGN REMITTANCE:
This bank is authorized dealer to deal in foreign exchange business. As an authorized dealer, a
bank must provide some services to the clients regarding foreign exchange and this department
provides these services. The basic function of this department are outward and inward remittance
of foreign exchange from one country to another country. In the process of providing this
remittance service, it sells and buys foreign currency.
Remittance procedures of foreign currency:
There are two types of remittance:
1. Inward remittance
2. Outward remittance.
12.1 Inward Foreign Remittance:
Inward remittance covers purchase of foreign currency in the form of foreign T.T., D.D, and
bills, T.C. etc. sent from abroad favoring a beneficiary in Bangladesh. Purchase of foreign
exchange is to be reported to Exchange control Department of Bangladesh bank on Form-C.
www.AssignmentPoint.com

21. 12.2 Outward Foreign Remittance:
Outward remittance covers sales of foreign currency through issuing foreign T.T. Drafts,
Travelers Check etc and as well as sell of foreign exchange under L/C and against import bills
retired.
12.3
Performance of Foreign Remittance: (2004-2008)
Performance in foreign remittance (in million)
Year
Remittance
National
AIBL
% of AIBL
2005
94,484
7,644
7.76
2006
115,785
9,879
8.53
2007
116,844
14,670
8.9
2008
164,913
14,668
8.01
2009
196,536
23,669
12.04
Table 3 : Performance of Foreign Remittance
The performance of foreign remittance shows an increasing trend from 2005 to 2009. It can be
seen from the chat that there is a sharp improvement in the performance from 2005 to 2008.
www.AssignmentPoint.com

22. 13.0
Relationship with immediate supervisor:
The relationship with immediate supervisor was very friendly. Always he used to take care about
all of the official works. He also tried to train me by providing updated information to ensure a
better performance. When ever I was busy in providing information to existing clients and at the
same time new account holders who were interested to open an LC, he used to make my job
easier. While putting entries manually in different register books, supervisor used to cross check
if any mistake has been made. If any mistake was found, then he (supervisor) helped to catch up
the mistake and made it right. His politeness and cooperation helped me to continue my work
smoothly with satisfaction.
14.0
The level of Responsibility:
The level of responsibility was very crucial in making manual entries in the register book.. Under
foreign exchange department I had to maintain four to six register books every day. On each
register book I had to input transaction amount with transaction detail of an L/C, which is more
then on an average BDT 2,000,000. So, any minor mistake might lead to a big loss for AIBL.
Due to a wrong entry AIBL might lose its potential clients, because this is a sensitive issue to
directly affect customer loyalty. The principle officer used to recheck these entries to find out
whether there are any discrepancies. If any mismatch with manual entries and software records
were found, supervisor used to send it back to me for a recheck. These manual entries and
examination of proper documentation were quite sensitive task to handle.
15.0 Problems encountered in handling tasks assigned:
www.AssignmentPoint.com

23. There are a number of tasks that I had to perform under foreign exchange department of AIBL.
Finding out files of a specific party was a difficult task to manage. Documents and files of
different clients were not sequentially arranged according to the maturity date. There fore lots of
time is being spent in arranging and finding out thousands of files. More over different business
clients used to come at a time to take their payments. As records of all parties were maintained in
one record book, so it was time consuming to find out the maturity date of each party. On the
other hand maintaining a single register book for all parties enable one party to wait for the other.
Hence, convincing client was a critical job. After arrangement of every thing payment to client is
to be made. This payment making is another complex task. Before making payment I had check
the balance of foreign currency account. Based on the sufficiency of I had to make payments.
These payment were done by FDD foreign demand draft. Any minor mistake in FDD block
would lead to a severe loss to AIBL. There the task required full attention and accuracy.
16.0 Competencies and skills acquired in handling the job:
Working under foreign exchange department of AIBL enabled me to gather some valuable
experiences. One of the major skills that I have acquired is how to work under a team of
experienced employees. With in the team of fifteen members each person had different
mentality. I had to be very dynamic and compromising in order to cope up with the team. More
over in handling clients I have acquired fluency in speaking and convincing power. Continuous
dealings with client’s problems and enquiries gave me an idea of which technique to apply to
satisfy clients. Finally, I could learn the importance document arrangement to build a smooth
working environment.
www.AssignmentPoint.com

24. 17.0
Evaluate the performance of the assigned tasks:
Tasks that I handle were quite important and sensitive. As I choose to work in foreign exchange
department, I had to maintain all important documents including L/C opening, FBP, FBC register
books. These tasks ultimately reflected the bank’s accuracy and affectivity. A minor mistake
might lead to severe losses. Though all records were maintained by AIBL’s own different soft
wares, but these manual entries helped them to cross check the accuracy of the data at the end of
the day. More over another important to play in this department was the examination of L/C
form. An L/C form checked by me ensured its accuracy. Only checking L/C form was not
sufficient, at the same time I had to motivate and guide a client to think about why AIBL is
different from other commercial banks. Consumer loyalty partly depended up on my behavior
and the quality of information provided. This ensures whether the client would return to avail the
service and make next transaction. Hence, handling this job was quite sensitive.
18.0
major findings:
(a) The working environment is not well organized. Furniture and other necessary tools of
foreign exchange division are not properly arranged therefore it becomes difficult for the
clients to share their information. Therefore, tasks become lengthy and time consuming.
(b) The organizational hierarchy is tall therefore decision making process is very slow. If
there is any requirement for repair and replacement then the branch manager has to wait
for a long time to get the support. More over sometimes clients also have to suffer for
this lengthy decision making process.
(c) The record keeping system is manual and backdated. Therefore time is wasted in
recording several L/C documents in register book. Moreover like other banks there is no
separate recording book for each party. All are recorded in a single register book so; one
business client has to wait for the other.
(d) The banking system of AIBL is not modernized in compare to other rivals in the
competitive market. The bank dose not has ATM facilities therefore clients don’t have
the option of withdrawing money any time from any where. Therefore, a large portion of
customer is out of reach.
(e) It takes more time to open up L/C due to the shortage of authorized dealer (AD)
branches.
www.AssignmentPoint.com

25. (f) Lack of delegation. Branch manager fails to take immediate action in order to accelerate
banking activities due to lack of sufficient power.
(g) The organization does not provide any extra incentive for showing extra ordinary
performance. Therefore, the tendency of showing better skills does not exist.
(h) The recruitment and selection process is mostly fair but too much time consuming and
lengthy. It take two to three months for a recruitment.
(i)
There is no policy to ensure better relationship and coordination among employees.
More over one way communication don’t allow employees to share their opinion and
feedbacks with the top management.
(j) AIBL as an organization in Islamic banking it is committed to avoid interest. Therefore,
even though there are many profitable projects available but it cannot invest the
permissible part of its statutory liquidity reserves and short term liquidity surplus in
these sectors.
19.0
Recommendation:
In order to ensure better progress of AIBL in future, some necessary steps are recommended
bellow on the basis of collected data, observation, client’s opinion, and my personal judgment.
(a) AIBL of Uttara should go for internal readjustments. The management should enhance
their service of foreign exchange department by ensuring a proper rearrangement of
furniture and other logistical supports. This readjustment would ensure fast and better
service to the clients.
(b) Automated Teller Machine (ATM) should be introduced as soon as possible. This is
because with out this facility a large portion of client is out of reach. Now a days
educated clients are looking for modern automated banking service.
(c) The bank should go for aggressive advertisement and undertake several promotional
activities to get hold over large portion of the market. It would help to collect more
deposits and investment scope.
(d) The entire department should be informed regarding their goals and objectives. It is
essential to turn company objective in to individual target. A philosophy of working for
the customer instead of working for boss must be introduced.
www.AssignmentPoint.com

26. (e) It is observed that officers have to spend more time in preparing vouchers. This must be
avoided through automation. In foreign exchange section individual record book need
to be maintained for each party, so one party don’t have to wait for the other.
(f)
Branches of AIBL are not sufficient as per demand of the people, so the management
should concentrate on setting up more branches.
(g) The bank has the provision of internship but is no organizational program to train
interns. The management can come up with such programs to help an intern in
gathering valuable experience.
(h) Job description should be clarified and proper training facilities should be insured to
improve the performance of the bottom line management.
(i)
The management should always monitor the performance of its rival in the field of
foreign trade. This would enable them to remain updated.
(j)
An official training regarding SWIFT must be insured.
(k) The management can follow flat organizational hierarchy in stead of tall. This would
enhance decision making process. Moreover delegation should be decentralized so that
branch managers can take decisions at a short notice.
www.AssignmentPoint.com

27. 20.0
Conclusion:
Bangladesh is a developing country and its economy has changed enormously in the last decade.
This change has raised the need for better banking facilities. To meet this increasing need a
number of private commercial banks, nationalized commercial banks and foreign banks
operating their activities in Bangladesh. Al-Arafah Islami Bank is one of them.
It is a great pleasure to have practical exposure to AIBL uttara branch. It helped me a lot to be a
professional banker in near future.
Foreign exchange is the pivotal department to any modern banking. Foreign exchange
department acts as a media between exporters and importers. Payments of foreign bills, FDD,
FTT and all transactions relating to foreign exchange of the bank can be well explained as
foreign trade.
AIBL is serving a large number of clients in Uttara branch. Its foreign exchange department is
quite busy. Turag garments, XL-composite, One way, Robin garments, Skamp garments are
some of the potential clients of AIBL foreign exchange. Total export and import performance of
Uttara branch is increasing in last five years tremendously. The number of opening export and
import LC has also increased. Foreign exchange procedures are more or less well organized and
management is trying their best to satisfy their clients.
Bank always contribute towards the economic development of a country. In compare to other
banks, AIBL is contributing a significant portion by investing more of its fund in fruitful projects
leading to an increase in production of the country. It is obvious that right channel of banking
establish a successful network over the country and increase resources.
AIBL is playing its leading role in socio-economic development of the country. Since inception,
AIBL has been rendering its banking service with the needs of the nation to cope with the
demand of the people in the country.
www.AssignmentPoint.com

28. BIBLIOGRAPHY
Al-Arafah Islami Bank Limited annual report (2010).
Al-Arafah Islami Bank Limited annual report (2009).
Monthly Report on Foreign Exchange AIBL.
Documentary collections of AIBL.
A textbook on foreign exchange, L.R. Chowdhury.
Website:
www.al-arafahbank.com
www.AssignmentPoint.com