INVESTMENT MANAGEMENT ACTIVITIES OF AL-ARAFAH

ISLAMI BANK LIMITED A STUDY ON BASURHAT

COMPANIGONJ,NOAKHALI

[THIS INTERNSHIP REPORT SUBMITTED IN PARTIAL FULFILLMENT

FOR THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION
(BBA) WITH MAJOR FINANCE&BANKING]

Prepared By:

NAME: SAIFULLAH MANCHUR

ID NO: B163067

PROGRAM: BBA

SEMESTER: AUTUMN 2020

MAJOR: FINANCE&BANKING
 DEPERTMENT OF BUSINESS ADMINISTRATION

INTERNATIONAL ISLAMIC UNIVERSITY,CHITTAGONG

INVESTMENT MANAGEMENT ACTIVITIES OF AL ARAFAH ISLAMI

BANK LIMITED A STUDY ON BASHURHAT BRANCH, COMPANIGONj
NOAKHALI

[THIS INTERNSHIP REPORT SUBMITTED IN PARTIAL FULFILLMENT

FOR THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION
(BBA) WITH MAJOR FINANCE&BANKING]

Prepared By:

NAME: SAIFULLAH MANCHUR

ID NO: B163067

PROGRAM: BBA

SEMESTER: AUTUMN 2020

MAJOR: FINANCE&BANKING

Submitted by:

MOHAMMAD SHYFUR RAHMAN CHOWDHURY

ASSISTANT PROFESSOR
IIUC, DBA

Internship Duration:
 Date of Submission:

DEPERTMENT OF BUSINESS ADMINISTRATION

LETTER OF SUBMISSION
Date:

To

The Convener of Internship Committee

Department of Business Admission

International Islamic University Chittagong

Subject: Submission of Internship Report on Investment Management Activities of

AIBL.

Sir,

With due respect I would like to state you that this is my pleasure to provide you with
the final internship report of my graduation; I have prepared the report is entirely on
the investment functions of Al-Arafah Islami Bank entitled "Investment Management
of Al-Arafah Islami Bank Limited."The report is prepared after completion of my
internship at Al-Arafah Islami Bank Limited, Jubilee Road Branch . After working
there as an intern I believe I could accumulate vast of knowledge and experience of
the corporate world which will be very helpful for attaining my future carrier goals.

I therefore pray and hope that you will be kind enough to accept the report. I am
confident enough I inform you that I will be present for the explanation of my report
at any time. Your support in this regard will be highly appreciated.
Faithfully yours,

Saifullah Manchur

ID: B163067

Program: BBA

ACKNOWLEDGEMENT

First and foremost I would like to express gratitude to Almighty Allah for such great
opportunity. I would like to put my heartened feelings and gratitude to my Family, my
father and mother for the kindness that was provided to me to complete entire
education till current date and for future as well.

I would like to thank my internship supervisor MD Saifur Rahman Chy Associate

Professor ,IIUC. For his helpful guidance and instructions that enabled me to
accomplish the internship report successfully. I would like to thank him
wholeheartedly for being a cooperative and helpful advisor, providing me with proper
guidance in completing my internship report.

I am very much thankful to Manager of b, Al-Arafah Islami Bank Limited, to allow

me continues my internship at AIBL.

I would like to thank Md. Sohel Rana (SPO) & (Investment In charge) and MD.
Mizanur Rahman (Principal Officer) of JBB for providing me an opportunity to work
in the bank as an intern to execute my internship program under his supervision in the
investment department of Al-Arafah Islami Bank LTD

Last but not the least I would like to thank all the staffs and members of Bashurhat
Branch from all categories who helped me and made me learn and experience the
work environment directly and indirectly throughout the months of my internship
period.

Executive Summary

This report is prepared as per internship rule of UGC for as final part of the
graduation and of the internship of BBA program of International Islamic University
Chittagong. My report is detailed with the working experiences in Al-arafah Islami
Bank and the investment condition and activities of the entire bank. I am confident
enough that the readers of the report will get a detail idea about activities and
operational strategies of Investment department, this report mainly focuses on the
Investment modes and entitled as “Investment Management of AIBL.”
Al-arafah islami Bank got its existence as a fully functioning bank in

September’27, 1995 with a clear idea of its existence and the meanings of is purpose
of blending economy, banking and financial activities with the Islamic code of life
and business. It followed what it takes to establish as Haram free business based on
the proper Islamic principle of social justice, equity and business. In order establish
goal of haram free business Al-arafah Islami Bank initiated different steps to cut
interest and fixed interest on various loans or deposits.

In brief and of easy understanding it can be said AIBL is an Islamic Bank based on
Islamic principles that help its clients to do haram free business and gain profit in both
in this world and in the afterlife. It does what is said as the concept Islamic Banking in
the Quran and Sunnah of prophet Mohammed (PBUH), which shows different
approach to credit and banking for clients based on profit-oriented society and
economy avoiding interest, for this purpose AIBL has introduced a number of income
earning programs for its clients both in the cities and villages.

With the haram free objective AIBL ensures profitable life in a batter surrounding
with greater security, respect and peace. AIBL is currently doing its banking business
in a three sectors banking system, which are formal, non-formal and voluntary sector.
General banking, Investment and foreign exchange are operated fully as part of the
formal sector.

Table of Contents

Chapter 1 Introduction Page No

1.1 Introduction

1.2 Origin of the report

1.3 Objective of the study

1.4 Methodology

1.5 Scope And Limitation of the Study

 Chapter 2 Organization Overview

2.1 Bank profit

2.2 Practices of Islami Bank

2.3 Vision ofAIBL

2.4 Mission of AIBL

2.5 Goals of AIBL

2.6 Contribution in countrys Economy

2.7 Features of AIBL

2.8 Branches of AIBL

2.9 Corporate structure of AIBL

2.10 Form of Organization of AIBL

2.11 Corporate Environment of AIBL

2.12 AIBL core Information

2.13 Core management Team

2.14 SWOT Analysis of AIBL

Chapter 3 Modes of Investment

3.1 Introduction of Investment Depertment

3.2 Investment policy of AIBL

3.3 Investment Strategies of AIBL

3.4 Core Mechanism and Modes of Islamic

Investment

3.5 Bai Mechanism

3.6 Share Mechnism

3.7 Ijarah Mechnism

3.8 Investment activities of AIBL

3.9 Principles of Investment of AIBL

3.10 Sources of Fund

3.11 Investment Income from Different modes

3.12 Geograpghical Investment Allocation

3.13 Investment Growth rates of AIBL

3.14 Investment Income

3.15 Non Performing Investment

3.16 Modes wise Investment

3.17 Sector wise Investment of AIBL

3.18 Rate of Return

Chapter 4 Activities Undertaken of AIBL

4.1 Activities Undertaken

4.2 Selection of Client

4.3 Application Stage

4.4 Appraisal Stage

4.5 Sanction Stage

4.6 Docomentation Stage

4.7 Disbursement Stage

4.8 Monitor and Recovery stage

4.9 Constrains and challenges

4.10 Adapting the new environment

4.11 Understanding the work

4.12 Inadequate IT infractucture

4.13 Arrogent officers

 Chapter 5 Conclution, Recommendation &
Findings

5.1 Major Finding

5.2 Recommendation of AIBL

5.3 Conclution

Refference
 CHAPTER 1: INTRODUCTION

1.1 Introduction

Being one of the biggest Muslim nations Bangladeshi individuals are especially careful about
the Islamic way of life. The general population here is particularly strict in following the
Quran and the Sunnah of prophet. Therefore to lead a Haram free living they follow slamic
rules in every way possible. This created a lack of Islami shariah banking here in
Bangladesh.The foundation of Al-Arafah Islami Bank Limited on 18 June 1995 is the
genuine result of the demand of individuals for an Islamic shariah in banking. This was the
core reason Al-Arafah established its banking from 27 September 1995.

Con-currently the bank is operating with an Authorized Capital 15,000.00 Million and
Paid-up Capital 9, 943.06 Million. The bank is mainly guidence and well balanced control
Islamic Scholars and experienced and educated businessmen makes sure that the bank is
running according to the Islami Sariah and there is no sign of giving and earning interest at
any part of the financing system. The bank’s has its full paid up capital is owned by
indigenous shareholders.

AIBL has the total equity balance of Tk21,362,249,730 till the dated 31 December 2017, the
current manpower is 3446 and the number of shareholders was 36695.The bank's business
activities produced consistent profit and declared a decent dividend throughout the years for
its shareholders. As far as my findings are concerned the bank furnishes quality support of its
clients with blend of Islamic guidelines and current innovation in their day by day exchanges,
nonstop improvement of new plans for the general population is the key of the bank to make
progress in such brutal rivalry in the banking area now a days.

The Bank is committed to contribute fundamentally to the national economy. It has made a
positive commitment towards the financial advancement of the country with 140 branches all
finished the country

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1.2 Origin of the report:

As far as the importance of the report is concerned this internship report is a very important
for me, according to the rules of UGC and Brac university attending the internship program
and writing a report on it based on the observations, practical knowledge and experience in
the field is mandatory for completion of the four years BBA degree, and it carries four credit
and much of its marks depends on this report.

Internship is given such importance because knowledge and learning only gets perfect when
it is associated with practice and experience. I believe with the help of this internship new
doors of opportunities are opened. The interns get to know professionalism, develop new
contacts and networking, which may aid them to find new job offers.Writing report on it is
equally important as it must be written after very keen observation of the workplace.

This report writing was very helpful for me as it covers all the aspects of report writing that I
have learned in my four year BBA program. This report gave me the opportunity to wield all
my learning and also kept me focused at my goals throughout the internship months.

While Al- Alrafah Islami bank got me new skills, opportunities and contracts which I believe
will help me a lot in boosting my career, my internship report made me bring those into
writing that help me understand everything very closely and carefully. Now I actually

understand how important internship and report writing is for any newly graduated student.

1.3 Objective of the Report

The first objective of writing the report is fulfilling the partial requirements of the BBA
program. In this report, I have attempted to give an overview Al-Arafah Islami Bank Ltd’s

2
investment mechanisms in general and Order important issues regarding the experience after
three months of working in the bank as an intern.. Following are the main objectives.

To investigate the investment policies and procedure of AIBL

To highlight the investment products and services of AIBL

To evaluate the investment performance of AIBL

1.4 Methodology:

The methodology this report is prepared on the information extracted from different Sources
of data. Sources of Data Collection All the information in the study has been incorporated
and collected the following sources, which helped me to prepare this report. The sources
divided into two parts, such as:

• Primary Sources

• Secondary Sources

Primary Source

Primary sources of information include:

• Face to face communication.

• Oral interview of employees.

• Observing the rules and operations of the bank.

Secondary Sources:

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Secondary sources of information include:

Manuals of AIBL (Bai-muajjal, Baimurabaha, Bai-Mudarabah, Bai-salam.)

• General Report

• Project Profile

1.5 Scope and Limitation

This report covers the topic “Investment Management of First Al-arafah Islami Bank
Limited: A study on Bashurhat Branch,Noakhali” To conduct a study on investment
mechanism of AIBL. I have gathered valuable information from my working Branch.
Despite this topic there are many sectors for working and analysis here, like:
 An overview of Al-arafah Islamic Bank Limited.
 Financial performance of AIBL, Bashurhat Branch, Noakhali.
 Investment scenario of AIBL.

Limitation:

Though, I have given my utmost effort to prepare this report, there are some limitations of the
study. Such are as follows:
 The main constraint of the study was the insufficiency of information, which was
required for the study. There are various information the bank employees can't provide due to
security and other corporate obligations.

 Lack of opportunity to visit more than one branch.

 Lack of updated information at the bank's website.

 Available data also could not be verified.

 Every organization has its own secrecy that is not revealed to others.

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 Lack of in-depth knowledge acted as constraints in the way of meticulous exploration
of the topic.1.3 Background of Al Arafah Islami Bank Limited

CHAPTER 2

ORGANIZATIONAL OVERVIEW

2.1 Bank Profile

Allah had provided us a complete lifestyle in the Quran and Sunnah. Therefore in every ifs
and buts of our life we are advised follow the path of Al-Quran and lifestyle of our Prophet
Mohammed (PBUH).

Al-Arafah Islami Bank started functioning in the year 1995 with the Islamic principles in
mind and introduced an updated banking system entirely based on Al-Quran and Sunnah.

In order to make the holy intention of the bank successful a group of 13 specialized and
profound Islamic persons of Bangladesh are elected as the member of board of Directors of
the Bank. To carry out its activities flawlessly Al-Arafah Islami Bank Ltd. has 155 branches
and a total of 3446 employees all over the country. It is functioning with its authorized capital
of15,000.00
Million takaand the paid-up capital of BDT 9, 943.06 Million

5
2.2 Practices of Islami banking

On today’s banking sector Islami banking system is gaining more attractions to peoples
because of the demand of haram free transections in the society. According to statistics more
than 300 banks & financial institutions are actively performing business transactions with
Islami Sariah throughout the world. In our country 6fully fledged Islami Banks currently
carrying out their activities successfully. Moreover other common banks also have Islami
Banking branches conducting Islami banking activities

2.3 Vision of AIBL

Wisdom of the Directorial Bodies, Good faith and intention of staffs and the blessings of
Allah make Al Arafah Islami Bank Ltd one of the most updated and a leading bank of
Bangladesh

2.4 Mission of AIBL :

-Obtain Allah’s blessings and satisfaction.

-Establish a Shariah Based Banking practices as per Islamic laws.

-Offer quality banking service through adaptation of the latest technology.

2.5 Goal of AIBL:

The adage of the AI-Arafah Islami Bank Ltd is to reach the edge of modem banking making a
computerized and modernized service to its clients giving relentless service and set itself up
to confront the new challenges of the dynamic world of business. AIBL has the following
goals.

• A total Customer focused modern Islamic Banking with quality and continuous
growth through various new deposit schemes with quality Investment mechanism to
retain the leading position.

6
 • Deliver financial service to small scale business and continue the cycle of economic
development
• Adaptable to the changes of clients demand..

2.6 Contribute in the country’s Economy :

AIBL is always highly focused to the development of the Economy through following
process.

• Generation of work sectors around the country

• Aiding the small and big industries with easy financial solutions.

• Encouraging depositors to deposit by providing security of the fund.

• Flourish Export Import by aiding the exporters and importers through various
services

• Encourage small scale savings

• Encourage Charity

• Provides quality financial services

• Gather small funds and use them in engaging big development sector.

• Facilitating easy transfer of money.

• Encourage poor people to contribute in national economy giving financial help.

2.7 Features of AIBL

7
As far as Islamic banks are concerned AIBL unique in every dimention. Unlike other banks It
provide a bunch islamic services within the wide bracket of sharjah.. Some of the Special and
unique features that make AIBL notable in Islami banking sector are as follows:

• All activities of AIBL are led under profit and loss based framework as per Islamic
Shariah.
• Its speculation arrangements under various modes are completely Shariah consistent
and very much checked by the leading group of Shariah Council
• During the year 2007, 70% of the investment income has been distributed among the
Mudaraba depositors.
• AIBL has made itself counted as online bank from 2008 for that Bangladeshi
software has been used to promote the local developers.
• MBL regularly arranges its AGMs (Annual General Meeting). Whenever needed
EGMs (Extraordinary General Meeting) are also arranged.
• Its dividend are regularly paid to shareholders. In 2008, they declared 30% bonus
dividend to the shareholders.
• AIBL provides dedicated services to the clients along with Islamic spirit view
goodness

• AIBL is committing itself to be a welfare-oriented banking system and always active

meet the needs poor cliets
• ABIL carries the core Islamic values of establishing a justified economic system
through equal distribution of wealth among the socity .

2.8 Branches of AIBL

AIBL started its working at 161, Motijheel C/A with a Branch named Motijheel Branch on 27
September, 1995 was the first & main Branch of AIBL and has been operating throughout the
country. The Head Office of the Bank is however shifted to Purana Paltan in 2018 which is

8
their permanent premises and head office since then. AIBL is operating for twenty three years
and within this limited time frame the Bank has reached total of 180 Branches over the
bangladesh and also kept a smooth communication network among all the branches country
wide,the number of branchesas Division wise is mentioned in the following table

Divisions No. of Branches

Dhaka 78
Rajshahi 12
Rangpur 8
Khulna 16
Sylhet 8
Barishal 13
Chittagong 45

9
2.10 Forms of Organization (AIBL)
• Board Of Directors

• Executive Committee

• Management Committee

• Shariah Council

10
2.11 Corporate Environment of AIBL

Throughout my internship period I have noticed that the Corporate environment of “Al-
Arafah Islaimi Bank holds the beauty of the Sunnah of Prophet and has a touch of peace in
every part of their action and behavior. I could see in every stage of their movement they had
their faith and conviction, values and proper attitudes which reflected the Sunnah of our
prophet.

2.12 AIBL Core Information

- Managing Director: Md. Habibur Rahman - Equity 22,520.68 Million

- Opening Ceremony : 27 September, 1995 - Local Partnership of Capital: 100%

- Number of Employees: 3446 - Paid-up Capital: 9, 943.06 Million

- Investment: 235,905.23 Million - Authorized Capital: 15,000.00 Million

- Deposit: 244,806.26 Million - Number of Branches: 154

2.13 Core Management Team

Honorable Managing Director

- Md. Habibur Rahman

Deputy managing Director

- Kazi Towhidul Islam - Mohammed Zubair Wafa

- Md.Faizul Karim - SM Jaffar

- Muhammad Mahmudul Haque

11
Secretary

- Md. Mahmudur Rahman

2.14 SWOT Analysis of AIBL

Strengths.

• AIBL feels responsible for providing its customer quality service in consistent manner.

• AIBL has good financial backup.

• It uses the latest technology to operate its daily transactions.

• AIBL has good working environment for both staffs and client

• AIBL holds a good reputation in the banking markets.

• AIBL maintains a costly R&D sector for better offers and schemes. Weaknesses:
• AIBL has a gap of well trained staffs.

• AIBL don’t have enough promotional campaigns like other banks.

• Staffs feels they are paid less compared to other banks

• Staff management schedule is week. Opportunities:

• Demand for Islami bank is increasing day by day.

• Modern technologies are getting handy.

• Increase of investors in the country. Threats:

• Other commercial banks are also opening Islami branches.

• Inflation affects are hampering profits of bank.

• The rates of profit reduced due use of 9% profit quota.

• Other banks has far better technology to service their custormes.

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 Chapter 3 Modes of Investment

3.1 Introduction of Investment Department

Al-Arafah is bank of modern times. it is by far responsible for satisfying customers with
quality financial services/products and to aid GDP growth of’ the country by developing
business & boost industrialization, raising export and import. This creating enormous
employment scope and help reduce unemployment, poverty thus raise standard of living of
people and develop a overall socio-economic structure of the country.

In achieving such noble objective investment department of the bank is of shares equal
responsibility and importance as a vital part of the total revenue of the bank is generated from
it along with maximum risk.. The failure of a commercial bank is when the investment
mechanism fails assets. Therefore investment department not only features dominant position
in the asset structure, it is undoubtedly responsible for the success of the bank also, above all
this investment policy and control guidelines of the bank has been prepared which is subject
to amendment, revision, readjustment and refinement from time to time as may be warranted
by the change of circumstances due to passage of time to suite the requirement of the bank.

3.2 Investment Policy of AIBL

Investment operation of a Bank is extremely vital because the greatest share of total revenue
is generated from it, most risk is targeted in it and therefore the existence of a Bank largely
depends on well management of its Investment mechanism. For economical readying of

13
mobilized resources in profitable, safe and liquid sector a sound, well-defined and acceptable
Investment Policy is important.

One of the vital features of the investment policy of the bank is to invest on the basis of
profit-loss sharing system in accordance with the principles of Islami Shariah. Profit
generation is the solo motive, the objective behind this investment scheme the bank emphasis
in actively participating in social good according to the Quran and Sunnah.

In order to implement the Investment Policy adopted by the Bank a 7-year long term Plan
has been drawn-up for year between 1995 to 2002and put into effect. Then another 5-year
investment plan has been taken for the year 2003 to 2008 and put into effect. These plans aim
at diversify the investment by size sector geographical area, economic purpose and securities
to bring in phases all sectors of the economy and all types of economic groups of the society
within the fold of Bank’s investment operations.

3.3 Investment Strategies of AIBL

Risk within the investments and come on that are reticulate. Associate investment policy that
emphasizes a high come should settle for comparatively high risk. Conversely, associate
investment policy that may tolerate solely bit of risk should be ready to simply accept a
comparatively low come.

As such, it's very troublesome whether or not to pick out a high come port-folio on high risk
or low risk port-folio with a coffee come. Nevertheless, considering all aspects following
pointers shall be followed as strategy for banks investments.

• If two port-folios have an equivalent risk however completely different returns, the
portfolio having higher come shall be most preferred.

• If the 2 port-folios have constant expected returns, however completely different

degrees of risk, the port-folio with lower risk shall get preference. If one port-folio

14
 has each the next come and a lower risk than another, the first portfolio shall be
preferred.

• Keeping seeable the risk issue, the bank shall maintain flexibility in determination of
rate of come on investments on case to case basis in thought of the risk part
concerned within the several investments.

• Emphasis is given for enlargement and strengthening small scale industries and rural
industries. This vastly potential industrial sub-sector shall produce employment
opportunities to rural and semi-urban population and shall have positive contribution
working and financial gain generation and poverty alleviation of the low-income
cluster.

• Investment facilities shall be extended for institution and enlargement of export

orienting forward I back ward linkage and import substitute industries.

• The bank requires retaining 10% of its total deposit liability as Statutory Liquidity
Ratio (SLR) including 4% Cash Reserve Ratio (CRR) with the Central Bank. The
bank may go for investments up to 90% of its total deposit. The perspective
investment plan is being formulated quantifying the allocation of investments
size-wise, sector-wise, and geographical area-wise, economic purpose-wise,
security-wise and mode-wise keeping in view 20% projected growth of deposit each
year.

• Taking into consideration the broad objectives of the bank, national priority,
socioeconomic need, growth level of the economy, the investments port-folio of the
bank may gradually be diversified and allocated in term of size, sector, geographical
area, economic purpose, security and mode.

15
 • Safety, security, profitability and liquidity of Bank’s investments.

• Each branch invests, at least 50% of its deposits locally.

• Enhance of extending limit of good investment clients.

• Adoptation of modern technology.

So, banks investment policy, investment planning and investment budgeting, till situation
changes / improves, shall aim at promotion of quality general investment.

3.4 Core Mechanism and modes of Islamic investment

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 3.5 Bai-Mechanism

Fig 1.1 Sources AIBL JRB

Comment: Fig 1.1 shows that there is a continuous increase in the format of Bai Mechanism
from year 2018, 2019 and 2020 at Bashurhat branch,Noakhali.

Determining the above table & pie diagram we can see –

17
• Firstly: The highest percentage of investment was made in HPSM mode, which
portion is 16209.97, 18419.47 , 16163.32 , 14253.59 , 17273.37 in million and the growth
rate is 58.47% , 58.01% , 44.12% , 37.36% , 40.19% of the total investment by the branch. it's
also shown that it's continuously decreasing in 2017 to 2018 but 2019 was increase, which
indicates positive.

• Secondly: Bai- Murabaha is gradually increasing year to year, which portion is

5938.94, 6676.43, 8353.21, 9387.40, 9588.78 in million and the growth rate is 24% , 32% ,
45% , which are fluctuate.

• Thirdly: Bai-Muajjal is also continuously increasing trend year to year and it's portion
is 3131.53 , 3311.28 , 6140.93 , 7166.46 , 7341.35 in million and the growth rate is 11.30%,
10.43% , 16.76% , 18.78% , 17.08% which is also increase trend.

• Fourthly: Quard Hasanah is gradually increasing year to year, which portion is

2399.45 , 3345.76 , 5979.43 , 7349.44 , 8779.90 and it's growth rate is 8.65% , 10.54% ,
16.32% , 19.26% , 20.43% which is increasing trend. Most important things is that the branch
did not practice in Musharaka mode of investment. So, this branch's investing mode
Bai-Murabaha, HPSM, Bai-Muajjal and Quard.

3.5.1Bai-Murabaha

Theterms “Bai” and“Murabahaa” have been derived from Arabic words. “Bai”means
purchase and sale and the word Murabaha means in cash” Bal-Murabaha means sale for
which payment is in cash or in future fixed date or within a fixed period, in short, it is a sale
on cash.

18
Definition

Bai-Murabaha may be defined as a contract between a buyer and a seller under which the
seller sells a specific amount of commodity to the buyer at a cost plus agreed profit which
will be payable in cash on any fixed date in total or in installments.

Types of Murabaha

In respect of dealing parties Bal-Murabaha are of two types.

Ordinary Bai-Murabaha

When there are only two parties, the seller and the purchaser, where the seller as an ordinary
trader purchases the goods from the market without depending on any order and promise to
buy the same from him and sells those to a buyer for cost plus profit, then the sale is called
OrdinaryBai-Murabaha.

Bai-Murabaha on Order and Promise

This is when there are three parties, the buyer, the seller and the Bank as an intermediary
trader between the buyer and the seller, where the Bank upon receipt order from the buyer
with specification and a prior outstanding promise to buy the goods from the Rank, purchases
the ordered goods and sells those to the ordering buyer at a cost plus agreed profit, the sale is
called
“Bai-Murabaha on Order or Promise”, generally known as Murabaha.

This Murabaha upon order and promise is generally used by the Islami Banks, which
undertake the purchase of commodities according to the specification requested by the
Clients and sale on Bal-Murabaha to the one who ordered for the goods and promised to buy

19
those for its cost price plus a marked-up profit agreed upon previously by the two parties, the
Bank and the Clients.

Fig: Growth of Bai murabaha at AIBL JRB

3.5.2Bai-Muajjal

The terms “Bai” and “Muajjal” have been taken from Arabic words Ajal and Bai. The word
Bai stands for purchase and sale and the word Ajal is a fixed time or a fixed period”
Bai-Muajjal means sale for which payment is made on a date fixed earlier or within a fixed
period of time. In short, it is a sale on credit.

20
Definition

Bai-Muajjal can be termed as a deal between a purchaser and a seller following which the
seller sells specific goods), to the buyer at a agreed price payable on a agreed future date in
total or within a fixed period in installments. The seller may also sell the goods purchased by
him as per order and specification of the Buyer.

Features of Bai-Muajjal

• The client goes to the bank with a deal to purchase a specific good by the Bai-Muajjal
agreement.
• The client must have to give security to guarantee for payment on a later date.

• If the bank wishes it may sell the goods at higher price to earn more profit.

• The bank is not liable to show the profit made on transactions.

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3.5.3Bai-Sa1am (Payment in Advance)

“Bai” and “Salam” are the terms that have been taken from Arabic words Bai and Salam.
The word “Bai” means “sale and purchase” and the word Salam means “Advance”.
“Bal-Salam” means Advance Sale and Purchase.

3.5.4 Bai-Istishna

Istishna is the word that has been borrowed from the word” Istishna” which stands for
industry or Manufacturing enterprise. Istishna means to goods manufactured by placing
orders to a manufacturer.

22
Definition

Istishna is a deal between a manufacturer/seller and a buyer under which the

manufacturer/seller sells specific product(s) after having manufactured, permissible under
Islamic Shariah and Law of the Country after haying manufactured at an agreed price payable
in advance or by instilments within a fixed period or on/within a fixed future date on the basis
of the Order placed by the buyer.

3.6 Share Mechanism

3.6.1 Mudaraba

23
It is a form of partnership where one party provides the fund while the other provide the
expertise, labor and the letter referred to at the Mudarib, any profits accrued are shared
between the two parties on a pre-agreed basis, while capital loss in exclusively born by the
partner providing the capital.
Important Features:

• Bank supplies capital as Sahib- al -Mall and client invest if in the business with his
experience.

• Administration and management are maintained by client.

• Profits is parted as per agreement.

• Bank bears the actual loss alone.

• Client cannot perform another investment for that specific business without the permission
of the Bank.

3.6.2 Musharaka- Shirkat

The term Shirkat and Musbarakah have been taken from Arabic words “Shairkah” and
“Sharika.” The word shirkah means a partnership between more than one partners. Thus the
word “Musharaka” and “Shirkat” means a partnership established between two or more
partners for purpose of a commercial venture participate both in the capital and management
where the profit may be shared between the partners as per agreed upon. Basic human need,
Al-Arafah Islamic Bank Limited is committed to contribute to this end to provide a peaceful
and happy Important Features:

• The investment client has to run and manage the business.

• The bank should take part in the policy and decision making as well as analizing the
operations of the business . The bank may if want to give suitable personal(s) to run
the manage the business and to keep records of accounts and of the business property.
• As the investment client shall manage the enterprise, the bank may more share of
profit to him than that of his proportion capital contribution.
• Loss, if any, shall be divided equally to both on the basis of capital ratio.

24
 3.7 Ijarah mechanism

Fig 1.2 Source AIBL JBB

Comment: The graph above shows the growth of Ijarah Mechanism of jatrabari Branch the
amount of money in 2018 was 222.19 which was 113.95% higher than the 2019 growth
which was only 103.85 and the 2020 data gives a clear idea that the trend is steady but raising
which is 246.36 which is 10.88% higher. Division of Ijarah Mechanism

3.7.1 Hire purchase /Ijarah

The term ijarah has been derived from the Arabic works Ajarah and Ujrut which means
consideration, return, wages or rent. This is really the exchange value or consideration,
return, wages, rent of service of an Asset. Ijarah has been defined as a contract between two
parties, the Hire and Hirer where the Hirer enjoys or reaps a specific service on benefit
against a specified consideration or rent from the asset owned by the Hire. It is a hire

25
agreement under which a certain asset is hired out by the Hire to a Hirer against fixed rent or
rentals for a specified period.

3.7.2 Hire Purchase Under shirkatul Melk

Hire purchase under shirkatul Melk is a special type of contract which has been developed
through practice. Actually, it is a synthesis of three contracts: Shirkat, Ijarah and sale. Shirkat
means partnership. Shirkatul Melk means share an ownership. When two or more persons
supply equity, purchase an asset, own the same jointly, and share the benefit as per agreement
and bear the loss in proportion to their respective equity, the contract is called Shirkatul
contract.

3.8 Investment activities of AIBL :

Investment is the action of deploying funds with the intension and expectation that they will
earn a positive return for the owner. Funds may be invested in either real assets or financial
assets. When resources are used for purchasing fixed and current assets in a production
process or for a trading purpose, then it can be termed as real investment. Specific Examples
of financial investments are: Deposits of money in a bank account, the purchase of Mudaraba
savings bonds or stock in a company. Since Islam condemns hoarding savings and a 2.5
percent annual tax (ZAKAT) is imposed on saving, the owner of excess Savings, if he is
unable to invest in real assets, has no option but to invest his savings in financial assets.

3.9 Principles of Investment of AIBL :

26
The Principles ofinvestment operations of the bank are:

1. To invest fund strictly in accordance with the principals of Shariah.

2. To ensure mutual benefit both for the bank and the investment client by professional
appraisal of investment proposals, judicious sanction of investment, close and constant
supervision and monitoring thereof.
3. To make investments keeping the social-economic requirement of the country in view.

4. To increase the number ofpotential investor by main participatory and

productiveinvestment.

5. To finance various development schemes for poverty alleviation, income and employment
generation with a view to an accelerating sustainable social- economic growth ofthe
society.
6. To invest in the form of goods and commodities rather than giving out cash money to the
investment clients.

7. Any Investment on products or services that causes bad effect to human is strictly
prohibited like alcohol production cigarette manufacturing etc.

3.10 Sources of Fund

Al -Arafah Islami Bank limited, in general collects fund from reserves, and funds rose
through borrowings from IBG account. The main part of their operational funds is however,
Derived from the different categories of deposits accepted on the Islamic principles of
Al-Wadiah (safe custodianship) and Mudaraba (trust Financing). AIBL, Jatrabari Branch has
opportunity to collect fund in two ways such as ‘Primary’ and ‘Secondary’ sources. These are
discussed under:

3.10.1 Primary Source

27
1. Reserves

The central bank enquires that every Islamic bank shall maintain reserve fund. Before any
dividend is declared AIBL shall transfer to the reserve fund out net profits of each year after
due provision has been made for Zakat and: in percentage of the net profits in order build up
adequate reserves

2. Liquid Asset

AIBL is further required to keep at all times minimum amount of liquid asset againt its
deposit liabilities expressed as certain percentage of the despoils, as may be, preserved from
time to time notice in writing by the central bank.
3. Borrowing from IBG

To tide over temporary liquidity shortages AIBL, as member banks are tit1d to borrow from
the central bank, as the lender of last resort.
4, Inter-Bank borrowing

AIBL has established interest -free fund arrangements with local and foreign banks on the
basis of reciprocity. Normally, under prior arrangement, the Islamic banks keep surplus funds
with selected banks.

3.10.2 Secondary Sources

1. Mobilization of Deposits

The main function of AIBLis to mobilize savings and provide financial support to the
entrepreneurs. Islamic banking is a response to such exigencies. It mobilizes savings
of the common people in line with Islamic Shariah. Techniques employed by Islamic
banks for saving mobilization are as Follows:
2. AL-Wadiah Account

AIBL banks receive deposits in their Al-Wadiah account. This account is similar to
the demand deposit account of deposit account. In addition, depositors may withdraw
all or a part of the funds deposited in this account without restriction. The term

28
 Al-Wadiah means deposit of money allowing somebody to claim the funds in the
account, the bank as trustee preserves and safe keeps the funds deposited.
3. General Mudaraba Account

The account of AIBL is different from the checking account of an interest based bank.
Mudaraba is a form of business contract where one party supplies money and the
other manages the business by investing labor and time. Profits generated contract.
However, in this arrangement, the financier is solely responsible for any loss that may
be incurred 4. Term Mudaraba Account Islaimi banks receive different kinds of
mudaraba
The deposits are generally for 3 months, 6 months, 12months,24 months, and 36
months

5.Special Mudaraba Account When AIBL receives a Mudaraba deposit for’

investment in some specific business, sector or project, the deposit is ca1kj a “Special
Mudaraba Deposit”. AIBL provides some special scheme for their client.

3.11 Investment Income from Different Modes

Investment mode Income (TK in Million)

Murabaha 1475826842
Mudaraba 1794339652
Bai-Istisna 4941614
Hire Purchase 24714948
Others mode income 16281000
Total Income 8386578851

Sorce AIBL Annual Report

29
The table shows the income from various modes of investment from AIBL

3.12 Geographical Investment Allocation

Investment (TK)

Division

Dhaka Region 75,313,323,373 9,901,087,423

Chittagong Region 15,775,263,431 1,773,255,233

Sylhet Region 445,816,233 428,868,466

Rajshahi Region 5,1,97,957,704 1,704,194,982

Khulna Region 2,877,281,368 336,479,033

Barishal Region 1,237,686,990 104,708,195

Total 100,847,329,099 8,249,593,333

Total Investment in Country 10,909,69,22,432

Source: AIBL BB: Table shows Investment of AIBL to various regions Around Bangladesh

3.13 Investment Growth rate of AIBL :

Year 2017 2018 2019

Investment 162,503.14 196,519.38 235,905.23

(million)

30
 Growth % 10.74% 20.93% 20.4%
Table: Investment Growth: Source Annual Report

The table above shows that the investment has a progressive pattern in 2017 there was
10.74% growth in 2018 the investment grew 20.93% and in 2019 there was a growth of
20.4%.It can be concluded that the bank’s investment is growing day by day at a similar rate.

3.14 Investment Income:

Year 2017 2018 2019

Taka (million) 18,568.00 18,830.15 20,491.03
Percentage of rise -5.87% 1.41% 8.82%
Table: Investment Income Growth: Source: Annual Report

31
Fig: Investment Income Growth

The above table shows the investment income of AIBL over three year period, and it is
graphically presented in the diagram. Analyzing both it can be seen that in 2017 the income
from investment fell unusually by 5.87%. However in 2018 there was a growth of 1.41% and
in2019 the investment showed its usual growth by rising income by 8.82%

3.15 Non Performing Investment:

32
AIBA loan is non-performing when payment of interest and principal are past due by 9() day
or more, or at least 90 days of interest payment have been capitalized, refinanced or delayed
by agreement, or payment are less that 90 days overdue, but there are other gocxl reasons to
doubt

Year 2017 2018 2019

Non-Performing 1.14% 0.95% 1.63%

Investment
that payment will be made in full

Table: Non Performing Investment Of AIBL: Source: Annual Report

3.16 Mode-Wise Investment

Mode 2017 2018 2019

Bai-Murabaha 17,924,759,588 23,845,684,157 22,48,65,509

Hire Purchase 8,867,604,185 12,748,718,957 25,57,351,376

Bai-Muajjal 21,665,352,589 31,971,641,046 54,11,260,294

Table: Mode Wise investment: Source: Annual Report

The above table shows that the mode wise investment of AIBL. According to the annual
report the balances are shown her. In Bai-Murabaha it has a positive growth continuously. It

is the main investment mechanism. In Hire purchase (HPSM), the trend is also increasing.

33
 3.17 Sector Wise Investment of AIBL

Sector 2017 2018 2019

Agriculture, Fishing 568,402,591 614,658,559 784,584,746
Industry 10,277,033,743 14,277,033,743 24,279,597,484
Construction 1,813,385,477 251,512,864,818 3,412,988,458
Transport, 1050,762,021 1,235,762,345 3,435,774,906

Communication
Trade Finance 23884,464,414 32,786,023,198 41,886,353,810
Miscellaneous 296,034,587 664,253,509 51,86,922,383
Source: Annual Report

3.18 Rate Of return

Sector, Modes, Schemes Rate of Return

SME Investment 10%
Grameen Small Investment 10%
Investment on Agricultural Sector 10-13%
Rural 10%
Investment on Women Entrepreneur 9%
Solar Electricity 10%

34
HPSM and others 14-17%
Source: Annual Report

CHAPTER 4 :
Activities undertaken at AIBL

4.1 Activities Undertaken:

I was assigned at the Investment department of the bank, while working in the investment I
have came across with the vital activities of investment. I worked as monitor and recovery
stage if the investment department which is discussed below As discussed earlier Investments
activities are conducted according to islami sharia so interest payment system is altered profit
giving mechanism from client deposit amount. Investment practice consists of stages like
selection of the client, Application stage, Processing and appraisal, Sanctioning stage,
documentation stage, Disbursement stage, Monitoring & Recoverystage. These stages are the
heart and core of the bank’s investment department.Al-Arafah Islami Bank (AIBL) makes its

35
investment decision through successfully passing these crucial steps; the steps are discussed
in detail below.

4.2 Selection of client:

Here, the client approaches to the brunch of AIBL. He talks with the manager or respective
officer (investment) Secondly, bank considers four C’s of the client. After completion of the
discussion successfully between them, bank selects the client for its proposed investment it is
to be noted that the client must agree with the bank’s rules & regulations before availing
investment. Generally, bank analyses the following five C’s of the client
- Character

-Capacity

-Capital Collateral

-Condition

4.3 Application Stage:

The bank collects necessary information about the prospective client at this stage. For this
reason, then bank informs the prospective client to provide and or fill a form with respective
information which is crucial for the initial of investment process. Documents that are
necessary for getting investment of AIBL are prescribed below
-Photocopy of theTrade License

- Income statement

- Attested copy o partnership deed (if partnership basis is selected)

36
-
-
Recent three (03) years audited balance sheet (for Joint Stock Company)

Three (03) years’ business transaction statement for the Musharaka / Mudaraba investment

Abridged proof income statement for the Musharaka / Mudaraba investment

- Attested copy of the Memorandum (MOA) & Articles of Association (AOA) for the joint
stock company
-. Attested copy of the Tax Identification Number (TIN certificate)
-Detail summary of the sundry debtors and creditors.
-Summary of the personal movable & immovable assets and others

4.4 Appraisal Stage :

This is the evaluation stage, here the bank evaluates the client and his/ her business. It is
considered to be the most important stage because, on the basis of this stage, bank usually
goes for sanctioning the proposed investment limit or proposal. If a single thing goes bad
here, the bank stops to make sanction of the investment. In order to appraise the client, AIBL
gives a standard F1 67B form (Appraisal report) to the client for gathering all the
information. However, the following contents are presented from that appraisal report:
-Company’s information

-Owner’s information

-List of partners in the business

- Purpose of investment

-Details of proposed Investment

- Break up of present outstanding

-Other liabilities of the client

37
-
-
- Previous Bank’s information Details of sister/ Allied concerns

-Allied Deposits as on

-Business Industry Analysis if an

-Relationship analysis if any

-Asset- Liability position of the client as per Audited Balance sheet

- Working capital assessment Risk grade

Particulars of the go down for storing MPI Murabaha goods

Insurance coverage
-Audit observation

-Security analysis

4.5 Sanction Stage

This is the conclusion stage; here the bank officially aggress the investment proposal of the
respective client. In this case Client receives bank’s sanction letter. AI-Arafah Islami Bank
(AIBL) sanction letter contains the following elements

- Investment Limit in Million

- Mode & amount of Investment

- Purpose of investment

- Period of Investment

- Rate of Return

-Securities

1. Stock of goods is the primary security

2. LC/ Bills - Related documents

38
-
-
3. Murabaha Post Investment (MPI) / Bai- Murabaha- Pledge of MPL/ Bai-Murabaha goods.

4. MPI Bai-Murabaha

5. Cash/ Goods- Bai Murabaha- 25%cash security on cost price.

6. TR (Trust Receipt)-Without cash security

7. Collateral- Immovable properties

4.6 Documentation Stage

In the documentation stage, usually the bank analyses weather required documents are in
order.

in the documentation stage, AIBL checks the following some documents of the client-
-Tax payment Certificate
- Stock Report

- Trade License (Renewal)

VAT certificate

Liability statement from different parties

- Receivable from different clients Other Assets statement

4.7 Disbursement Stage

At this stage bank decides to pay out money. Here the clients get his desired funds of goods,
it is to be noted that before disbursement a ‘site plan’ showing the exact location of each
mortgage property needs to be physically verified.

39
-
-
4.8 Monitor and Recovery Stage :

This is the stage where I was put into work during my internship at AIBL, as the name
suggests

there are two parts of this stage, monitor and recovery. Monitor consists of the activities that

analyzes the validity of the documents client provided, stating the use of money that will be

taken from the loan account, here the client need to give documents like vouchers of the
goods

that will be bought for business and other related documents that proves his legality of
purchase.

The taken loan has a validity of one year, with in that time the client has to deposit all the
taken

amount of loan in the account, that’s what recovery part, does. In the recovery part the
officers

make sure that the loans are put back within one year.

40
4.9 Constrains and challenges

AIBL is a very reputed firm and does everything to make its customers happy and satisfied.
Working there as as an intern I am very much satisfied and happy. However with satisfaction
of
work I have also faced some constrains and challenges when dealing with the everyday tasks.
I

have tried to list those below with the solutions I performed to overcome those.

4.10 Adapting the new environment

The first problem I faced in the very first day of my work was the newness of corporate
environment, I was very much nervous to interact with my supervisors; all of them were
asking my name and other details. Some were friendly and few were tough as well .It took
couple of hours for me to understand how things work out there. I controlled my fear and
took interest into knowing my seniors and within a day or two things were easier for me and I
became one of them and they also accepted me with warm hands.

4.11 Understanding the Work

Financial transactions were very much risky in the bank for me as those were in millions, a
single mistake could hamper lot. So, it was very much challenging for me to understand how

41
my bosses work, I had to ask every single task twice and thrice so that I don’t make any
mistake and slowly I could do the assigned task at ease.

4.12 Inadequate IT infrastructure

AIBL has a very good IT infrastructure to carry out their tasks, however they lack full
potential as the server went down more than 5 times during my full internship program and it
created a huge mess. Also some of the computers and UPS were faulty as a result during load
shedding the works stopped it was very embarrassing for me so. In order to avoid those
problems I took less task on computers and work manually by hand.

4.13 Arrogant Officers

Working at AIBL Bashurhat branch I had the opportunity to come across some of the most
talented and friendly officers however Some officers were very much arrogant they were
tough to understand and always stayed in bad mood. I was problematic for me to handle them
easily so I decided to avoid and bad incident with them and stayed as far as I could.

42
 CHAPTER 5:
Conclutions, Recomendation &
Findings

5.1 Major Findings

Al-Arafah Islami Bank ltd. is a unique combination of shariah & Islamic banking. Among
nongovernment commercial banks. Operating since 27 September 1995Al-Arafah Islami
Bank Ltd is a milestone for economic development. With its equity of 22520.68 million it has
been playing an important role to eradicate the unemployment problem of Bangladesh.. It has
been over 3446 employees working in180 branches and from its banking business 36695
shareholders are getting benefits around the country. It is currently operating with but most
people in the country have misconception about Islamic banking specially Al-Arafah Islami
Bank Ltd. & other Islamic banks. They are unable to differentiate its operation with other
commercial Banks and thinks Islamic banks are taking interest in the name of profit, infect
unfortunately I had the same idea, now working out there I can understand whythey have
wrong idea, they feel like this because they do not have clear idea about the activities and the
investment mechanism of Islamic banks.

With its total investment of 235905 million and deposit of244806.26 million the Bank is
committed to run its activities as per Islamic Shariah and thus it has different investment
(credit) modes, different repayment schedules, different disbursement procedure, and
different mark up system. And also has a different Credit (Investment) policy. Mark up means
adding some additional value after purchasing the goods but before to sell the same to another

43
people. This system is accepted in Islamic Shariah because here money is converted to
goods.. Money begets money is prohibited in Islam. People are getting more benefit from the
dealings of Islamic banking because here quarterly interest is not charged and there is no
possibility of interest to be converted into principal. It cannot take part in call money market.
Murabaha,Bai-Muazzel, Hire
Purchase Sirkatul Meilk (HPSM) are the common investment modes and
Musharaka,ALWadeah, MDRB(farmers) are most common modes of deposit of AIBL.

Working out there I have witnessed thatthe service provided by the young energetic officials
of the Al-Arafah Islami Bank Limited is very satisfactory. As an islami bank AIBL has to
follow the rules of Bangladesh bank despite the fact that these rules sometime restrict the
foreign business to some extent. During my internship in this branch I have found the
investment department to be very efficient; therefore this department plays a major role in the
overall profitability of the branch and to the Bank as a whole.

To conclude I would like to say that Al-Arafah Islami Bank Ltd is one of the most potential
Islami banks in the Islami banking sector. It has a large portfolio with huge assets to meet up
its liabilities of 236 million and the management of this bank is equipped with the expert
bankers and managers in all level of management. The Bank’s drive towards market
leadership as well as quality in choosing business will continue in the coming years, although
competition is intensified with the opening of more financial institutions with islami sariah.
The Bank is optimistic that the volume of business will increase in future through pragmatic
and market friendly policies. The Bank shall continue to explore new fields of investment and
take steps to open new Branches for Banking and shall endeavor to adopt customer-oriented
policies and introduce new techniques that will help to earn profit and increase greater
confidence of the existing prospective customers.

44
5.2 Recommendation for AIBL

Working in AIBL was an absolute pleasure for me; from there I have learned so many
important lesions about the corporate culture. However while doing my daily work at the
Bashurhat branch of AIBL I have came across some of the issues that I thought needed
improvement. I have included those in this recommendation section in list form so that those
issues can be given preference and sorted out soon.

• AIBL Should Increase skilled manpower to do its financial activities more efficiently.
So that many of the employees do not have to do extra work.
• The Bank should go aggressive and promotional activities in form of CSRto get a
broad geographic coverage.
• The authority of AIBL should introduce more innovative and modem Customer
service to remain competitive like mobile app for payment.
• Reduce theamount of doubtful income substantially.

• Inclusion of more modes of investment and deposit mechanism based on the Quran
and Sunnah.
• It facility for the employees should be improved.

• Market them as true Islami Sariah based bank to reduce misconception among people
who think they renamed interest, to profit for misleading them.
• They should also focus on the marketing aspects to let customers know about their
products and offerings and more promotion should be given to attract new customer.
• AIBL must develop electronic banking system to moderate the service. Technology
advantage of a bank ensuring its competitive edge in the market place can only be
achieved by efficient manpower. It is market share to reduce its operating cost and to
generate new revenue.
• Arrange easy modes of Hajj deposit so that even poor can perform Hajj.

45
 • Now a day’s world is going very fast. Now most of the banks open online customer
service system. So in order to compete in the world market they should adopt online
banking system.

5.3 CONCLUSION

Al-arafah Islami Bank Limited is one of the third generation banks inBangladesh.Day by day.
AIBL is going up. At present the Banking Industry is being governed by tight rules and
regulations set by Bangladesh Bank-the central bank of the country.AIBL is successfully
operating their operations and expanding it gradually. Now a day’s many private banks are
emerging with lot of attractive features. To capture and maintain this lucrative position this
bank
needs to compete in a very competitive environment.The Investment department at Bashurhat
Branch is trying to improve their level of satisfaction day by day in comparison to other
banks.
In order to have an insight into how effectively the bank is doing its investment activities, this
ady has been conducted. The study reveals that there is lower investment to deposit ratio but
upward trend in its investment.

The purpose of this study is to understand investment department related rules & regulations,
mechanism, modes of financing. The study also covered some finding as well as
recommendation related with this department. Finally, for a newly converting bank it may be
difficult for them to manage the given recommendation, but still if they follow, it will help
them
to perform their work efficiently as well as in decision making.

46
I expect the AIBL may hold its prospect in future and can contribute a vital role in the socio-
economic perspective.

References:

Books:

•Dr. Debnath, R.M. (2004), “Business of Banking”, Dhaka, Lotus Publishers.

•Hasan, M.K. (2003) ‘Text Book on Islamic Banking”, Dhaka, Islamic Economics Research
Bureau.

•Obaidullah, M, 2005, Islamic Financial Services, Islamic Economics Research centaur Aziz
University, Jeddah, AIBL.
Reports and Others:

•Annual Report, Al-Arafah Islami Bank Ltd, 2017 -2019

• Annual Report, Al-Arafah Islami Bank Ltd 2017 -2019

• Statement of affairs,Al-Arafah Islami Bank Ltd. JRB branch 2017-2019

• Working manual for different departments.

• Credit operational manual of AIBL

• Shariah manual published by AIBL

• several booklets from AIBL

• Al-Arafah newsletter’s from AIBL Web sites:

• http://www.al-arafahbank.com [Accessed: 11/08/2021]

• http/www. wikipedia.org.com [Accessed: 18/08/2021]

• http/www.al-arafahbank.cenVlnvestment.php. [Accessed: 6/08/2021]

47
• http/www.alarafahbank.com/Schedule-Charges.php [Accessed:

6/08/2021]

• http://www.a1anrffibank.comIPage/OperACt.htm#iflVeStm [Accessed: 10/09/2021]

• http://www.a1arafahbank.comIPage/SpSChemhtm0S [Accessed:

12/09/2021]

• http://www•arafahbank.comfPagefIflVM0de.htm#BaimU [Accessed:

30/08/2021]

• http://www.ukessays.com/essays/finaflc afl-0VerVI of-a1-arafh- islami -bank

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