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Internship Report
On
“A Comparative Analysis on Marketing Strategy of Shahjalal Islami Bank with
other Conventional Banks”
Internship ReportOn
“A Comparative Analysis on Marketing Strategy of Shajalal Islami Bank Limited with the
Conventional Bank”
Prepared By
Md.Mustakim Hasnine
ID: UG01-17-08-092
Prepared By
Md.Mustakim Hasnine
ID: UG01-17-08-092
Prepared For
Kamrul Hasan
Lecturer, Faculty of Business
State University of Bangladesh
Prepared For
Kamrul Hasan
Lecturer, Faculty of Business
State University of Bangladesh
DECLARATION
I hereby declare that the report of internship namely titled “A Comparative Analysis on Shahjalal
Islami Bank Limited with the Conventional Bank ” is conducted by me after the completion of 3
(three) months of internship with the Eskaton Branch of Shahjalal Islami Bank Limited.
This is to notify that this report has been prepared for academic purpose as the requirements of
the completion of BBA (Bachelor of Business Administration) program. My supervisor is
Kamrul Hasan, Lecturer, Faculty of Business, State University Bangladesh (SUB). This has not
been prepared for any other purposes.
…………………………….Md. Mustakim Hasnine
State University of Bangladesh
Department of Business Administration
ID No: UG01-17-08-092
CERTIFICATE OF THE SUPERVISOR
It is my pleasure to certify that Md. Mustakim hasnine, ID No: UG01-17-08-092, a student of
Bachelor of Business Administration (BBA), State university of Bangladesh (SUB), Dhanmondi,
and Dhaka has been completed in the practical internship program at the Eskaton branch office
of Shahjalal Islami Bank Limited. I declare that the internship report on“A comparative analysis
on Marketing Strategy of Shahjalal Islami Bank Limited with the Conventional Bank ” is
performed successfully with excellent performance under my supervision period.
I wish him every success in his life.
…………………………….Kamrul Hasan
Lecturer, Faculty of Business
State University of Bangladesh
TO WHOM IT MAY CONCERN
It is our pleasure to certify that Md. Mustakim Hasnine, ID No: UG01-17-08-092, a student of
Bachelor of Business Administration (BBA), State University Bangladesh (SUB), Dhanmondi,
Dhaka has been completed in the practical internship program at the Eskaton branch office of
Shahjalal Islami Bank Limited. We declare that the internship report on “A comparative analysis
on Marketing Strategy of Shahjalal Islami Bank Limited with the Conventional Bank ” is
performed successfully with excellent performance from October 02, 2011 to January 02, 2011.
During this brief period we found him very sincere, energetic and keen to learn. He is disciplined
and well-behaved young gentle man. We observe that he possesses all the qualities to adjust with
every environment.
We wish him every success in his life.
………………………… .……………………..
A.S.M. Hasanul Kabir Md. Aslamul Hoq
AVP & Deputy Manager VP & Manager
Letter of Transmittal I
Acknowledgement II
Executive Summery III
Chapter 01: Introduction 01
1.1 Background of the Study
1.2 Objectives
1.2.1 Broad Objective
1.2.1 Specific Objective
1.3 Methodology
1.3.1 Measurement Techniques (Questionnaire)
1.3.2 Sources of Information (Primary and Secondary)
1.4 Sampling Design
1.4.1 Population
1.4.2 Sampling Area
1.4.3 Sampling Unit
1.4.4 Sampling Size
1.4.5 Sampling Method
TABLE OF CONTENTTABLE OF CONTENT
1.4.6 Sampling Plan
1.5 Scope
1.6 Limitations of the Report
1.7 Schedule of Internship
Chapter 02: Literature Review 07
Chapter 03: An Overview of Shahjalal Islami Bank Limited (SJIBL) 09
3.1 Histories and Background
3.2 Mission
3.3 Vision
3.4 At a glance of SJIBL
3.5 Objectives
3.6 Goals
3.7 Strategies
3.8 Management of SJIBL
3.8.1 Board Committees
3.8.2 Executives Committees
3.8.3 Structural Management
3.9 Branch Expansion
3.9.1 Branch Network
3.10 Office automation
3.11 Features of SJIBL
3.12 Products and Services of SJIBL
3.12.1 Deposit
3.12.2 Investment Scheme
3.12.3 SME Investment Operation
3.12.4 Computer Services
3.12.5 E- Services
3.12.6 Remittances
3.13. Departments of SJIBL
3.13.1 General Banking Department
3.13.2 Foreign Exchange Department
3.13.3 Investment Department
3.14 Activities of SJIBL
3.14.1 Membership of Different Organization
3.14.2 Corporate Banking
3.15 Credit Rating Report of SJIBL
3.16 An Overview of Eskaton Branch
3.16.1 Organ gram of Eskaton Branch
3.17 Financial Highlights of SJIBL
3.17.1 Equity of the Bank
3.17.2 Deposit of the Bank
3.17.3 Investment of the Bank
3.17.4 Foreign Exchange Business
Chapter 04: An Overview of Dutch Bangla Bank Limited (DBBL) 27
4.1 Histories and Background
4.2 Mission
4.3 Vision
4.4 At a glance of DBBL
4.5 Core Objective
4.6 Products and Services of DBBL
4.6.1 Card Products
4.6.2 IT Products
4.6.2.1 Truly Online Banking
4.6.2.2 Electronic and Mobile Banking
4.6.2.3 Wide Range of ATM & POS
4.6.2.4 Internet Banking
4.6.2.5 SMS and Alert Banking
4.6.2.6 Fast Track Service
4.6.3 Retail Banking Product
DBBL Life, Health, Education, Professionals, Marriage Line
Travel, Festival, Dreams Come True, Care, General Line
Home, Full Secured, Recharge and DBBL Future Line
4.6.4 Other Banking Products
4.6.4.1 Deposit
4.6.4.2 Term Deposit
4.6.4.4 Loan Advances
Chapter 05: Banking Industry of Bangladesh 34
5.1 Laws for Private Bank
5.2 Performance of Banking Sectors
5.3 Market Segments
5.4 Current Status of Banking Industries
5.5 Characteristics of Islamic and Conventional Bank
Chapter 06: Data Analysis 40
6.1 Analysis on Strategy of Products and Services of SJIBL
6.1.1 Product Innovation
6.1.2. Product Variation
6.1.3 Product Differentiation
5.2 Analysis on Strategy of Products and Services of DBBL
6.2.1 Product Innovation
6.2.2 Product Variation
6.2.3 Product Differentiation
Chapter 07: Comparative Analysis 42
7.1. Promotional Strategy
7.1.1. Promotional Strategy of SJIBL
7.1.2. Promotional Strategy of SJIBL
7.2 Analysis on Questionnaire
Chapter 08: Recommendations 51
Chapter 09: Conclusion 53
References 0
Appendix 0
22th December 2011
To
Kamrul Hasan
Lecturer, Faculty of Business
State University of Bangladesh
Subject: Submission of the internship report.
Dear sir
I am truly lucky to have you as my instructor in BUS- :
With immense pleasure, I am submitting my internship report on “A Comparative Analysis on
Marketing Strategy of Shahjalal Islami Bank Limited with the Conventional Bank ” which was
assigned me. I have tried to my best to complete the report with the necessary information and
suggested proposal in quite a concise and comprehensive manner as possible.
I hope that the report will meet the expectation.
Sincerely Yours
…………………………….
Md. Mustakim Hasnine
State University of Bangladesh
Department of Business Administration
ID No: UG01-17-08-092
Acknowledgement
Practical experience and situation can give the proper knowledge of different environment. My
report will be the greater example of that.
First, I like to express our gratitude to Almighty Allah to give us the strength to complete this
report.
I am really lucky to my honorable faculty Kamrul Hasan for his whole hearted super vision
during reports period her suggestion were really a great source of spirit to make the report best
one.
I would take this opportunity to thank Mr. Aslamul Hoq, VP & Manager, Mr. A.S.M. Hasanul
Kabir, AVP & Deputy Manager and his whole team of Eskaton Branch for being so much
encouraging and helpful through my internship. I would like to thanks all the officials in the
Eskaton Branch of Shahjalal Islami Bank Limited for three wonderful months’ of work
experience. Special Thanks to Mr. Shahidul Islam (Senior Executive Officer) for providing me
valuable time, co-operation, inspiration, suggestion and supportive information for my report
writing process.
Finally, I would like to thanks my family for their numerous support in both
financially and mentally which helps me lot to finish my entire internship
program and internship report successfully.
Executive Summery
As a bank of 21th century, the SJIBL bank uncompromisingly adopts modern technology at all
levels of its operations to improve efficiency and reduce cost per transaction. This report has
used data both primary and secondary sources. Primary sources like asking question to
employees of the Eskaton branch and customer of SJIBL. As secondary source, I used 2009 to
2010 annual reports, website of SJIBL, and various books and articles about different banks,
investment risk grading manual and investment policies and also more, textbooks including
‘Marketing Research’ by Naresh K. Malhotra, ‘Principles of Marketing’ by Philip Kotlar. In this
report, I described all types of products, investments, and the marketing strategies. Then I
compared the marketing strategies of SJIBL with the conventional bank . Shahjalal Islami Bank
Limited has earned huge reputation across Bangladesh. Despite competition among the banks
operating in Bangladesh, both local and international, the bank has made remarkable progress in
all areas of its activities. Among the Islamic banks SJIBL is the best. The title of the current
study is “A Comparative Analysis on Marketing Strategy of Shahjalal Islami Bank with the
Conventional Bank ”. The Shahjalal Islami Bank Limited of Bangladesh is gradually coming up
as a major bank and making significant contribution to national economy. In this study, different
factors of marketing strategy of SJIBL are analyzed, where some flaws of services in the bank
are identified. This study includes mainly the marketing strategy and the factors where they are
gaining and where they are facing the problems. In addition, in this report I tried to briefly
explain the Bank’s products and services based on their position and gave some
recommendations. I find that the marketing strategy of SJIBL is poor than the conventional bank
DBBL to the someway, in order to improve it should increase their ATM booth as well as
branches throughout Bangladesh. The customers of SJIBL are very much satisfied of customer
care and the interest rate.
1: Introduction
Shahjalal Islami Bank Limited (SJIBL) commenced its commercial operation in accordance with
principle of Islamic Shariah on the 10th May 2001, under the Bank Companies Act, 1991. It is 6th
Islamic Shariah based bank in Bangladesh. The Bank has made a significant progress within a
very short period of its existence and occupied an enviable position among its competitors after
achieving remarkable success in all areas of business operation. The authorized capital of the
Bank is TK. 600 crore and Paid up capital of the Bank stood at TK. 342.51 crore as on June
2010. The total equity (capital and reserves) of the Bank as on June 2010 stood at TK. 647.42
crore. It has 63 branches (now) and total manpower is 1,671 persons.
1.1 Background of the Study
Bank is the heart of the economics and banking is the blood circulation of country’s economic growth.
Banks perform a significant role to serve the needs of the society in different sectors, such as: capital
formation, large scale of production, industrialization, growth of trade and commerce etc. and banks are
contributing a lot of aspect. Now-a- day’s banking sector is modernizing and expanding its hand in
different financial event every day. At the same time the banking process is becoming faster, easier and
is becoming eider. In order to survive in the competitive field of the banking sector all organizations are
looking for better service opportunities to provide their fellow clients. So it has becoming essential for
every person to have some idea on the bank and banking procedure.
Internship program so called work attachment program an essential for every BBA student
because it helps him or her to acquaint with the real life situation. As bank is one of the most
important financial intermediaries. So I have selected Shahjalal Islami Bank Limited, which is
one of the most leading banks of the new bank arena.
1.2 Objectives
The objective of this report is to focus on two broad issues. One is to find and compare the
marketing strategies of Islami Bank (SJIBL) with conventional bank- Dutch Bangla Bank
Limited (DBBL) and the customer response for the marketing activities to those banks.
Underlying these two concerns is the intent to understand the whole banking process, keeping
close attention on their organizational culture and all the practices to learn how they actually do
everyday banking. This would allow me to have a thorough understanding of how a bank works,
as I would engage me in conversation with different personnel handling different departments.
Also, the study would enable me to learn the banking sector of Bangladesh as a whole and how
different product has become the main marketing product for banks, which will greatly assist me
as a business graduate. The other objectives can be enlisted as follows:
1.2.1 Broad Objective
To analyze the current marketing strategy of Shahjalal Islami Bank Limited (SJIBL) compared
with Dutch Bangla Bank Limited (DBBL).
1.2.2Specific Objectives
To study of existing banker and customer relationship of Islami Bank (SJIBL) and
Conventional Bank (DBBL)
To compare with the products and services of SJIBL and DBBL
To have current promotional activities of SJIBL and DBBL
To find out the credit/investment facilities available at SJIBL and DBBL
To find out the modern banking services at SJIBL and DBBL
To effect of interest rates on deposits and credit schemes of SJIBL and DBBL
To find out how rapidly branch expansion in SJIBL and conventional bank (DBBL)
To find the customers value about the service provided by comparative banks
To suggest remedial measurement for the improvement of the whole process of the
SJIBL and other conventional bank in Bangladesh
1.3 Methodology
1.3.1 Measurement Technique (Questionnaire)
According to the Zikmund (2003), the two basic criteria a questionnaire must meet if it is to
achieve the researcher’s purpose are relevance and adequacy. A questionnaire is relevant if no
unnecessary information is collected, and if the information that is needed to solve the business
problem is obtained. The adequacy of the questionnaire is determined by it being reliable and
valid. The questionnaire consisted of 14 questions. Here, questionnaire has developed on the
basis of Likert Scale and the point scale was, SA- defines Strongly Agree, A- defines Agree, N-
defines Neutral, D- defines Disagree and SD- defines Strongly Disagree. The self-administered
questionnaire could be printed or electronic questionnaires. Different categories person gave
their comments and answer the required the providing questions.
1.3.2 Sources of Information (Primary and Secondary)
We cannot make any report without collecting information. So we needed many information and
data for different type of sources to prepare the report. This report are making by using both
primary and secondary sources of data.
Primary sources
Data will be collected from customers and employees. It will do by personal interview and
working experience. I acquired adequate knowledge about marketing research and survey from
our academic classes and that’s why I want to perform the survey by internship. For collecting
primary data, I have taken aid to the respective officer(s). Others are like- Exposure on different
desk of the bank, File study, and Field study.
Secondary sources
Secondary data are type of data that where developed for some other purposes. Secondary data
are collected for their time and cost adventures. These types of data are collected from-
Published Journal, Daily Newspaper, Website of the bank, many types of book, Business
magazines, Annual report and others.
1.4 Sampling Design
1.4.1 Population
According to the Zikmund (2003), it is important to carefully define the target population so that
the proper source, from which the data is to be collected, can be identified. The population of the
research was defined as Bangladeshis who have been staying with the Shahjalal Islami Bank
Limited (SJIBL) and Dutch Bangla Bank Limited (DBBL) in Dhaka City. Various related and
involved directly persons help to make this survey. Clients Both bank is interaction with me and
gives their original and legal information, what their wants from Bank.
1.4.2 Sampling Area
Focus two area is the major option for make the random sampling. The focus on Dhaka's Banks
was deemed appropriate as Dhaka has the greatest number of banks of varying products and
quality services that attend to a diverse set of customer needs. The two banks are at the area of
(SJIBL) Eskaton Branch and (DBBL) Shanti Nagar Branch Dhaka.
1.4.3 Sampling Unit
Two separate private banks in Dhaka were Shahjalal Islami Bank Limited (SJIBL) and Dutch
Bangla Bank Limited (DBBL). Their main difference is an Islamic and another is the
Conventional Bank, but as private bank they can follow more reliable and quality service
provider.
1.4.4 Sampling Size
Simple Random Sampling procedure has been used to draw samples from the population.
Population in this report is the account holders and management of SJIBL, Eskaton Branch and
Conventional Bank (DBBL), Shanti Nagar Branch. The population is fixed and from their
sample size is determined. One of the most important problems in planning a sample survey is
that of determining how large a sample is needed for the estimates to be reliable enough. Due to
resource and time constraints, a sample size of 38 is used in this research. At the time of
selecting the sample here the most considerable things is that the valued customers who are
stayed at least five days in months.
1.4.5 Sampling Method
In case of choosing the sampling method here the first priority is Convenience sampling. This
refers that samples are unrestricted and researchers or field workers have the freedom to choose
whomever they find; thus the name convenience. The convenience sample may consist of
respondents living in an easy accessible locality. Undoubtedly, it is the simplest and least reliable
form of non probability sampling. The primary virtue is its low cost. Considering this method in
mind here, I have tried to focus on those samples which are easy to get access.
1.4.6 Sampling Plan
This is all about how handle the sample. It is almost to do a complete census of most population.
Here, the time of taking sample plan I have spent two days. At the first day I collect data from
the SJIBL and next day I have collected data from the DBBL. In this case I shall collect data
from customers and depositors (Personal interview or survey). It takes complicated time because
participants are not always in mood to talk their banking period and sometimes-different types of
situation have arisen so that I have to wait to make a favorable time. After all, sampling plan has
done properly and able to get desire outcome. Finally I am focusing on marketing strategy
analysis of Shahjalal Islami Bank compared with Dutch Bangla Bank Limited. Personal working
experience and organizational information during my internship time may help to reach the
specific objective.
1.5 ScopeIslami Bank has introduced some modern banking scheme that has got high very hard
competition in this banking sector. So in this research report, I want to deal with the comparison
of marketing strategy of Shahjalal Islami bank compare with Dutch Bangla Bank Limited and
their difficulties in the market demand. As it maintains the pace with competitive business, its
activities, culture, attitude and style leads to learn a lot. It has three divisions- General Banking
Division, Investment Division and Foreign Exchange Division. General Banking Department is
one of the most important departments of Shahjalal Islami Bank Limited. Basically, bank
provides the main services to the customer through this department. The Investment
Division gives loan to the customer and monitor whether he repays regularly or not. As the
Branch did not become AD Branch yet, the Foreign Exchange Division deals their
activities with the help of Foreign Exchange Branch of SJIBL. Beside these they have to
follow initiative marketing policy to increase their banking performances. As they are not
experienced compared to other banks it is facing banking sector.
1.6 Limitations of the Report
Although I have obtained wholehearted co-operation from employee of SJIBL, Eskaton Branch
and Head Office, they could not manage enough time to deal with my report. On the other hand,
as it was the new branch, they were not able to give me much documents and papers. On the way
of my study, I have faced the following problems that may be terms as the limitations of the
study.
Time Limitations
The first obstruct is time itself. Due to the time limit, the scope and dimension of the study has
been curtailed. Shahjalal Islami Bank Limited is a big organization. It is very tough to deal with
this bank within this short time. On the other hand, due to short time I could not become able to
conduct with all the customers who have taken the loan. The respondents are scared with
different places. Due to the short time it was not possible me to do random sampling and conduct
with the respondent by going everywhere. Most of all respondents have less willingness to
answer my questionnaire.
Data Insufficiency
It was very difficult to collect data from such a big organization. My internship was at Eskaton
Branch. But for better interpretation I had to collect some information from the Head office
(Human Resource Department). But because of some divisional and confidential problem, I
could not get enough information. The Eskaton Branch is a new Branch. So for better
interpretation I could not get sufficient data.
Lack of Records
Sufficient books, publications, facts and figures are not available. These constraints narrowed the
scope of accurate analysis. If these limitations were not been there, the report would have been
more useful and attractive.
Strict rules & regulations
SJIBL is very strict with their rules. They never break their rules. So they never disclose required
information on the perspective of my internship.
Depends on particular task
This report only focuses on the Marketing strategy elaborately of Shahjalal Islami Bank Ltd. It
does not cover whole activities about them doing business, such as –
General Banking
Foreign Exchange Activities
1.7 Schedule of Internship
Shahjalal Islami Bank Limited is a large organization and it is very tough to deal with this Bank within this
short time. Due to the short time it is not possible for me to do random sampling and conduct with the
respondent by going everywhere. On the first day the supervisor divided my whole study into three
parts. As a result I could learn the whole Baking system as much as possible. I did all types of work
everyday and every division but deemed that I had a schedule task. The whole work will be completed
within 10 weeks as an internship.
Time Period of the Internship at Eskaton Branch
General Banking Division 4 weeks
Investment / Credit Division 1 weeks
Foreign Exchange Division 5 weeks
02. Literature Review
The introduction of interest-free and equity-based financing by the Islamic banking system is
based on the principles of Islamic economics. The aim of Islamic economics, as observed by
Molla et.al. (1988), is not only the elimination of interest based transactions and the introduction
of the zakat (contribution to poor) system but also the establishment of just and balanced social
order free from all kinds of exploitation. The Islamic banking system is highlighted in the World
Development report (1989, Box 6.3), as under; “Islamic banks offer savers risky open-ended
mutual fund certificates instead of fixed interest deposits. (This is not unlike cooperative banks
and mutual in the west, where deposits earn variable interest and double as equity). Difficulties
arises on the lending side. Arrangements to share profits and losses lead to considerable
problems of monitoring and control, especially in lending to small business”. The Islamic bank
follows the principle of equity based-investment. In the modern financial market an alternate
arrangement for participation of capital and entrepreneurship started with the advent of Islamic
Banking in the 70’s. In a number of studies such as IMF, World Bank and IFC, the Islamic
activities were discussed in detail. Highlighting Islamic bank’s principle Khan (1986, p. 19), in
the IMF staff Paper, observed as; “Indeed it is really apparent that the Islamic model of banking
based on the principle of equity participation bears a striking resemblance to proposals made in
the literature on the reform of banking system in many countries. Islamic banks could make a
useful contribution to economic growth and development particularly in a situation of recession,
stagflation and low-growth level because the crore of their operation is oriented towards
productive investment. About the possibility of introducing an interest-free financing system
through Islamic banking principle Scarf (1983) argues that the establishment Islamic Financial
System based on the principle of Shariah is not only feasible but also profitable.
Although characteristics of risk sharing and variable returns distinguish Islamic banks from
conventional banks in theory, heavy reliance on fixed returns modes describes the actual practice
of Islamic banks.
At the outset of theoretical development, Islamic banks were perceived to conform to one of the
two models: the two-tier mudharabah model and the two-window model: (Iqbal and Mirakhor
1999). The two-tier mudharabah requires that both funds mobilisation and utilisation be on the
basis of mudharabah (Siddiqi 1980, 1982; Chapra 1985; Uzair 1980.Islamic banks are
commercial banks which tend to comply with the religious injunctions of Islam. The guiding
principles for an Islamic bank in particular and financial system, in general is a set of rules and
laws, collectively referred to as Shariah, governing economic, social, political and cultural
aspects of Islamic societies. Interest free Islamic banking, in modern setting, is comparatively
new proposition that began in the seventies when the first of its kind was established in the social
sector in Cairo, named the Nasser Social Bank (Ahmed 1995). Dubai Islamic Bank the first
modern private sector Islamic Bank, was established in 1975 Unlike highly developed financial
markets which have relatively short history, commercial banks have long history of existence
accepting ‘deposits from households and making loans to economic agents requiring capital’
(Allen and Santomero 1998:1463). The conventional finance literature has developed a large
body of literature with regard to various aspects of innovation. In an extensive study of the
available literature on New Service Development (NSD), John and Storey (1998) have included
a wide range of research articles and books on this subject. In addition, most conventional banks
and other financial institutions are having their own innovation and service development
departments. Bowers (1985) finds in a survey that practitioners across the financial industry
believe that service development is vital for future competitive strength. In comparison to the
conventional finance, Islamic finance literature on innovation is lagging behind.
3. An Overview of Shahjalal Islami Bank Limited
3.1 History & Background
Shahjalal Islami Bank Limited (SJIBL) commenced its commercial operation in accordance with
principle of Islamic Shariah on the 10th May 2001 under the Bank Companies Act, 1991. During
last ten years SJIBL has diversified its service coverage by opening new branches at different
strategically important locations across the country offering various service products both
investment & deposit. Islamic Banking, in essence, is not only INTEREST-FREE banking
business, it carries deal wise business product thereby generating real income and thus boosting
GDP of the economy. Board of Directors enjoys high credential in the business arena of the
country, Management Team is strong and supportive equipped with excellent professional
knowledge under leadership of a veteran Banker Mr. Md. Abdur Rahman Sarker.
3.2 Mission of SJIBL
Shahjalal Islami Bank Ltd. aims to become one of the leading Banks in Bangladesh by prudence,
flair and quality of operations in their banking sector. The bank has some mission to achieve the
organizational goals. Some of them are as follows as-
To provide quality services to customers
To set high standards of integrity
To make quality investment
To ensure sustainable growth in business
To ensure maximization of Shareholders' wealth
To extend our customers innovative services acquiring state-of-the-art technology
blended with Islamic principles
To ensure human resource development to meet the challenges of the time
3.3 Vision of SJIBL
To be the unique modern Islami Bank in Bangladesh and to make significant contribution to the
national economy and enhance customers' trust & wealth, quality investment, employees' value
and rapid growth in shareholders' equity.
3.4 AT A GLANCE of SJIBL (as of June, 2011)
Name of the Company Shahjalal Islami Bank Limited
Legal FormA public limited company incorporated in Bangladesh on 1st April 2001 under the companies Act 1994 and listed in Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited.
Commencement of Business 10th May 2001
Head OfficeUday Sanz, Plot No. SE (A), 2/B Gulshan South Avenue, Gulshan - 1, Dhaka-1212.
Telephone No. 88-02-8825457,8828142,8824736,8819385,8818737
Fax No. 88-02-8824009
Website www.shahjalalbank.com.bd
SWIFT SJBL BD DH
E-mail [email protected]
Chairman Alhaj Anwer Hossain Khan
Managing Director Md. Abdur Rahman Sarker
Auditors
M/S. Hoda Vasi Chowdhury & Co. Chartered Accountants Ispahani Bhaban , 14-15 Motijheel C/A , Dhaka-1000 Phone: 88-02-9555915, 9560332
Tax Advisor
M/S K.M Hasan & Co. Chartered Accountants 87, New Eskaton Road, Dhaka. Phone: 88-02-9351457, 9351564
Legal AdvisorHasan & AssociatesChamber of Commerce Building(6th floor), 65-66 Motijheel C/A, Dhaka
No. of Branches 63
No. of ATM Booth 14
No. of SME Centers 06
Off-Shore banking Unit 01
No. of Employees 1,671
Stock Summary:
Authorized Capital Tk. 6,000 million
Paid up Capital Tk. 3425.12 million
Face Value per Share Tk. 10
3.5 Objectives of SJIBL
From time immemorial Banks principally did the functions of moneylenders or "Mohajans" but
the functions and scope of modern banking are now a days, very wide and different. They accept
deposits and lend money like their ancestors, nevertheless, their role as catalytic agent of
economic development encompassing wide range of services is very important. Business
commerce and industries in modern times cannot go without banks. There are people interested
to abide by the injunctions of religions in all sphere of life including economic activities. Human
being is value oriented and social science is not value-neutral. Shahjalal Islami Bank believes in
moral and material development simultaneously. "Interest" or "Usury" has not been appreciated
and accepted by "the Tawrat" of Prophet Moses, "the Bible" of Prophet Jesus and "the Quran" of
Hazrat Muhammad (sm). Efforts are there to do banking without interest Shahjalal Islami Bank
Limited avoids "interest" in all its transactions and provides all available modern banking
services to its clients and wants to contribute in both moral and material development of human
being. No sustainable material well-being is possible without spiritual development of mankind.
Only material well-being should not be the objective of development. Socio-economic justice
and brotherhood can be implemented well in a God-fearing society.
The objectives of SJIBL includes-
To conduct interest-free and welfare oriented banking business based on Islamic Shariah
To implement and materialize the economic and financial principles of Islam in the
banking arena
To contribute in sustainable economic growth
To help in poverty alleviation and employment generations
To remain one of the best banks in Bangladesh in terms of profitability and assets quality
To earn and maintain a 'Strong' CAMEL Rating
To introduce fully automated systems through integration of information technology
To ensure an adequate rate of return on investment
To maintain adequate liquidity to meet maturing obligations and commitments
To play a vital role in human development and employment generation
To develop and retain a quality work force through an effective Human Resources
Management System
To ensure optimum utilization of all available resources
To pursue an effective system of management by ensuring compliance to ethical norms,
transparency and accountability at all levels
3.6. Goals of SJIBL
Shahjalal Islami Bank Ltd. will be the absolute market leader in the number of loans given to
small and medium sized enterprises throughout Bangladesh. It will be a world-class organization
in terms of service quality and establishing relationships that help its customers to develop and
grow successfully. It will be the Bank of choice both for its employees and its customers, the
model bank in this part of the world.
3.7. Strategies of SJIBL
The strategies of Shahjalal Islami Bank include:
To strive for customers best satisfaction & earn their confidence
To manage & operate the Bank in the most effective manner
To identify customers needs & monitor their perception towards meeting those
requirements
To review & updates policies, procedures & practices to enhance the ability to extend
better services to the customers
To train & develop all employees & provide them adequate resources so that the
customers needs are reasonably addressed
To promote organizational efficiency by communicating company plans, polices &
procedures openly to the employees in a timely fashion
To cultivate a congenial working environment
To diversify portfolio both the retail & wholesale markets
3. 8. Management of SJIBL
The Board of Directors consists of eminent personalities from commerce and industry of the
country. Mr. Sajjatuz Jumma, the founder Chairman of the Board of Directors, is a businessman
besides being an eminent personality of the country.
The Bank is manned and managed by highly qualified and efficient professionals. The Managing
Director of the Bank is Mr. Muhammad Ali who has rich experience of managing both the
nationalized and the private sector banks as Managing Director.
3.8.1. Board Committees of SJIBL
Board of Directors who also decides the composition of each committee determines the
responsibilities of each committee.
3.8.2. Executives Committees of SJIBL
All routine matters beyond delegated powers of management are decided by or routed through
the Executives Committee, subject to rectification by the Board of Directors.
3.8.3: Structural Management of SJIBL
Figure 01: Organization Chart of SJIBL Source: Bank of SJIBL
3.9. Branch Expansion
The Bank commenced its business on May 10, 2001 by opening its 1 st branch, i.e. Dhaka Main
Branch at 58, Dilkusha, Dhaka obtaining the license from Bangladesh Bank, the central bank of
Bangladesh. Its Head Office is situated at UdaySanz, Plot No. SE (A), 2/B Gulshan, South
Avenue, Gulshan-1, Dhaka. It opened on 20th June 2010. Its corporate/main office is 10,
Dilkusha Commercial Area, Jiban Bima Bhavan, and Dhaka- 1000. The Bank opened 2 (Two)
branches in 2001, 6 (Six) branches in 2002, 2 (Two) branches in 2003, 2 (Two) branches in
2004, 4 (Four) branches in 2005, 5 (Five) branches in 2006 & 2007. Up to September 31, 2008
SJIBL established 31 branches to all over the country to give a cordial service to their customers.
Now, SJIBL has 63 branches.
3.9.1 Branch Network of SJIBL
Figure 02: Branch Network of SJIBL Source: SJIBL Web Site
3.10. Office Automation
Basic accounting system of the bank branches has been fully computerized to minimize cost and
risk to optimize benefits and increase overall efficiency for improved services. The bank is
capable of generating the relevant financial statements at the end of the day. On-line banking is
introduced by the bank from the commencement of the business. They are using software named
“Ultimus” for their banking operation.
3.11. Features of SJIBL
There are so many reasons behind the better performance of Shahjalal Islami Bank Ltd. than any
other newly established banks:
Shahjalal Islami Bank Ltd. has established a core Research & Planning Division
comprising skilled person from the very inception of the bank
Highly qualified and efficient professionals to manage the bank
The inner environments of the all branches of Shahjalal Islami Bank Ltd. are well
decorated
Banking operations of the all branches of Shahjalal Islami Bank Ltd. have been
computerized to provide the promptly & frequently customers service
The bank has established correspondent relationship with 76 countries of the world
Shahjalal Islami Bank Ltd. provides attractive interest rate that the other financial
institutions
The bank provides loan to the customers @ lower interest with easy & flexible condition
than the other does
The bank frequently arranges customers meeting to achieve their valuable suggestions
Letter of Credit (L/C) commissions and other charges are very lower than the other
conventional banks
Profit earning is not the main aim of the SJIBL. The bank is responsible to maintain the
social duties
The bank is committed to provide the cheque amount within 1 minute of submission the
cheque
3.12. Products and Services of SJIBL
3.12.1. Deposits
Shahjalal Islami Bank Limited accepts deposits on the basis of Mudaraba in the following types
of accounts and pays profit like that of interests in these accounts, except Al Wadia Current
Account. The relationship between banker and customer is not debtor-creditor relationship of
conventional banks. The depositor is a partner in this business with- Shahjalal Islami Bank
Limited.
Customer deposits their fund in the following types of Accounts:
Mudaraba Millionaire Scheme, Mudaraba Double/Triple the Money Scheme, Mudaraba Monthly
Income Scheme, Mudaraba Monthly Deposit Scheme, Mudaraba Hajj Scheme, Mudaraba
Bibaho Scheme (New Product), Mudaraba Cash Waqf Deposit Scheme (New Product), Special
Term Deposit Scheme (New Product), Mudaraba Mohor Deposit Scheme (New Product),
Mudaraba Shikhkha Deposit Scheme (New Product), Mudaraba Housing Deposit Scheme,
Mudaraba Lakhopoti Deposit Scheme, Mudaraba Small Business Deposit Scheme.
3.12.2. Investment Scheme of SJIBL
Doctors Investment Scheme, Education Investment Scheme, Executives Investment Scheme,
Marriage Investment Scheme, Household Durable Scheme, Overseas Investment Scheme,
Housing Investment Scheme, CNG Conversion Investment Scheme, Small Entrepreneurs
Investment Program, Medium Entrepreneurs Investment Program, Rural Investment Program,
Car Investment Scheme, Small Business Investment Scheme
Investments Modes
To provide interest-free Banking Shahjalal Islami Bank has adopted the following modes of
investment:
Musharaka (Equity participation on the basis of sharing profit and loss), Mudaraba (Sharing of
profit and loss in business where one of the partners provides expertise and management and
other partner provides capital remaining inactive), Murabaha (Buying and selling of
commodities goods etc. with profit), Bai-Muajjal (Credit sale with profit), Ijara (Leasing for
rent), HPSM (Hire purchase or Shirkatul Melk), Bai-Salam (purchasing of agricultural products
while in production and providing advance money to the producers), Istisna (purchasing of
industrial products while in production and providing advance money to the producers), Quard.
3.12.3 Small and Medium Enterprise (SME) Investment Operation
Shahjalal Islami Bank Limited (SJIBL) is a modern commercial bank governed by the principles
of Islamic Shariah, which is committed to implement and materialize the economic and financial
principles of Islam in the banking sector. It has undertaken initiatives for investment in SME
sector by introducing a number of SME products in the market gradually with a view to
patronizing the trade, commerce and industrial entities with equity & justice and to make
effective contribution for creating employment opportunities, which will ultimately help the
nation for poverty alleviation from the society.
Objective of Small and Medium Enterprise
The SME Sector has been declared by the Government as a priority sector. In our country, Small
and Medium Enterprises (SMEs) play the pivotal role for employment generation, poverty
alleviation and overall economic growth of the country. It has been observed that fund is the
major constraint of this sector. Therefore, we need to inject more funds into this sector in a much
planned manner to boost-up this sector for the sake of overall economic development of the
country. Our country is labour abundant and SMEs are typically labour intensive. So, the sector
deserves more investment facility for smooth functioning of the existing enterprises and
expansion of the same with a view to retain the workforce active as well as creating more
employment opportunities. Further, investment in SMEs can be very effective in reducing
poverty as well as ensuring long term economic growth.
SME Investment Products:
Prottasha for Small Enterprises
Prottasha for Woman Entrepreneurs
3.12.4. Computer Services
Shahjalal Islami Bank is computerized and provides the following services some of these
services will be introduced soon. Shahjalal Islami Bank Limited introduced different few
schemes, which are very popular:
Online services, Automated Accounting, Integrated System, Any Branch Banking, ATM
Services, POS Services, SMS Push Pull Services, Signature Verification and Other Delivery
Channel Services (to be implemented)
3.12.5. E-services
1. SJIBL VISA Card
2. SMS Service
3. GP Bill Collection
3.12.6. Remittances
1. Western Union
2. Kushiara
3. Swift Service
3.13. Departments of SJIBL
All branches of Shahjalal Islami Bank Limited are divided into three departments:
General Banking Department
Foreign Exchange Department
Investment Department
3.13.1. General Banking Department
General banking department is one of the most important departments of Shahjalal Islami Bank
Limited. Basically, bank provides the main services to the customer through this department. In
general this section of the Shahjalal Islami Bank Limited is divided into five sections.
Accounts Opening Section
Cash Section
Remittance Section
Bills and Clearing Section
Accounts Section
3.13.2. Foreign Exchange Department
Banks play a very important role in effecting foreign exchange transaction of a country. Mainly
transactions with overseas countries are in respect of imports, exports and foreign remittance
come under the purview of foreign exchange department. Banks are the vital sectors by which
such transactions are effected/settled. Central Bank records all sorts of foreign exchange
transactions. The other banks dealing with foreign exchange are to report to Bangladesh Bank
regularly (daily, monthly, quarterly, yearly etc.). The foreign exchange department consists of
three sections. They are:
Import section
Export section
Foreign remittance section
3.13.3. Investment Department
Banking business consists of borrowing and lending. Banks act as an intermediary between
surplus and deficit economic units. Thus a banker is a dealer in money and credit. Banks accept
deposit from large number of customers and then lend a major portion of the accumulated money
to those who wish to borrow. In this process banks secure reasonable return to the savers, make
funds available to the borrowers at a cost and earn a profit after covering the cost of funds.
Banks, besides their role of intermediation between savers and borrowers and providing an
effective payment mechanism, have been allowed to diversify into many new areas of better
paying business activities.
3.14. Activities of SJIBL
2.14.1. Membership of Different Organization / Chamber
1. Bangladesh Institute of Bank Management (BIBM)
2. The Institute of Bankers Bangladesh (IBB)
3. Bangladesh Association of Banks (BAB)
4. Bangladesh Foreign Exchange Dealers' Association (BAFEDA)
5. Central Shariah Board for Islamic Banks of Bangladesh
6. Islamic Banks Consultative Forum (IBCF)
7. International Chamber of Commerce- Bangladesh
8. Society for Worldwide Inter-bank Financial Telecommunication (SWIFT)
3.14.2. Corporate Banking
We provide personalized solutions to all our customers. The Bank distinguishes and identifies
corporate customers need and designs appropriate solutions accordingly. Shahjalal Islami Bank
Limited offers a complete range of financing and operational services to its corporate client
groups combining trade, treasury, investment and transactional banking activities. We offer
accurate solution whether it is project finance, term Investment, import or export deal, working
capital requirement. We are pledged bound to render efficient services to satisfy customer needs.
Our experience in handling Corporate Banking business covers a wide span of businesses and
industries.
We hold leverage on our expertise in the following sectors particularly:
Textile Spinning, Dyeing / Printing, Ready Made Garments, Agro processing industry, Edible
Oil, Consumer and Diversified Industries, Industry (Import Substitute / Export oriented), Food &
Allied products, Paper & Paper Products, Engineering, Steel Mills, Chemical and chemical
products etc, Telecommunications, Information Technology, Real Estate & Housing, Wholesale
trade, Project Finance, Lease Finance, Hire Purchase, International Banking, Transport,
Pharmaceuticals, Export Finance, Import Finance.
3.15. Credit Rating of SJIBL
Long Term Short Term
Entity Rating AA ST- 2
Date of Rating June, 2011
Table 01: Credit Rating Source: SJIBL Website
3.16. An Overview of Eskaton Branch of SJIBL
Eskaton Branch created positive image not only to the SJIBL but also to the customers. There are
some efficient and effective bankers workers in this Branch. The management of the Branch
always tries to provide better service to its customer and behave well with them. As a result they
have got a number of accounts in this branch. As a new branch it is a tremendous victory for the
management. There are mainly three divisions in this Branch. The General Banking Division
deals the day to day transactions. This is highest busy department among all the three
departments. The Investment Division/Credit Division gives loan to the customer and monitor
whether he repays regularly or not. As the Branch did not become AD (Authorized Branch)
Branch yet, the foreign Exchange Division deals their activities with the help of Foreign
Exchange Branch of SJIBL.
3.16.1. Organ gram of Eskaton Branch
Figure 03: Organ gram of Eskaton Branch
3.17. Financial Highlights of the Bank
3.17.1. Equity of the Bank
SL No: Particulars Year 2010
01 Paid-up Capital 342.51
02 Statutory Capital 164.95
03 Retained Earnings 124.80
04 Asset Revaluation Reserve 25.06
(Figures in Crore Taka) Total 657.32
Table 02: Equity of the Bank Source: Annual Report 2010 of SJIBL
Figure 04: Equity Composition
3.17.2 Deposit of the Bank
SL No: Name of the Deposits Taka in Crore Percentage of Total Deposit
01 Al-Wadia Current Deposit 5,236.4 50%
02 Mudaraba Savings Deposit 392.81 4%
03 Mudaraba Term Deposit 3,425.75 32%
04 Bills Payable 75.71 01%
05 Other Deposits 1,352.13 13%
Total 10,482.80 100%
Table 03: Deposit of the Bank Source: Annual Report 2010 of SJIBL
Figure 05: Deposit of the Banks
3.17.3. Investment of the Bank
SL No: Modes of Investment Taka in Million Percentage of Total Investment
01 Murabaha 5,844.81 28.35%
02 Bi-Muajjal 8,882.60 43.08%
03 Hire-purchase &Ijara 3,581.92 17.37%
04 Investment against L/C 19.15 0.09%
05 Bill purchased/Discounted 1,588.00 7.70%
06 Investment against Scheme deposits 17.25 0.08%
07 Quard 29.65 0.14%
08 Others 653.23 3.17%
Total 20,616.61 100%
Table 04: Investment Portfolio Source: Annual Report 2010 of SJIBL
Figure 06: Investment portfolio of 2010 Source: Annual Report 2010 of SJIBL
3.17.4. Foreign Exchange Business
SL No: Particulars Amount in Crore Taka Percentage of Total
01 Import 2,526.26 53%
02 Export 1,914.43 41%
03 Foreign Remittance 293.56 06%
Total 4,734.25 100%
Table 05: Foreign Exchange Business Source: Annual Report 2010 of SJIBL
Figure 07: Composition of Foreign Exchange Business.
4. An Overview of Dutch-Bangla Bank Limited
4.1 History and Background
Dutch-Bangla Bank Limited (the Bank, DBBL) is a scheduled joint venture commercial bank
between local Bangladeshi parties spearheaded by M Sahabuddin Ahmed (Founder & Chairman)
and the Dutch company FMO. DBBL was established under the Bank Companies Act 1991 and
incorporated as a public limited company under the Companies Act 1994 in Bangladesh with the
primary objective to carry on all kinds of banking business in Bangladesh. DBBL commenced
formal operation from June 3, 1996. The Bank is listed with the Dhaka Stock Exchange Limited
and Chittagong Stock Exchange Limited.
4.2 Mission
Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a
commitment to social responsibility. "Profits alone" do not hold a central focus in the Bank's
operation; because "man does not live by bread and butter alone".
4.3 Vision
Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athletics,
music’s and entertainment, science and education, health and hygiene, clean and pollution free
environment and above all a society based on morality and ethics make all our lives worth living.
DBBL's essence and ethos rest on a cosmos of creativity and the marvel-magic of a charmed life
that abounds with spirit of life and adventures that contributes towards human development.
4.4 AT A GLANCE of DBBL (as on 02.08.2011)
Type Private ( Non-Government), DSE BUTCH BANGLA
Industry Banking
Founded Dhaka, Bangladesh
Headqurter Dhaka, Bangladesh
Key People M Shahabuddin Ahmed- Founder & Chairman; Financiarings-
maatschappij voor Ontwikklingslanden (FMO)
Products Banking Service, ATM Services, Consumer Banking,
Corporate Banking, Invest Banking
Employees 1600
Website www.dbbl.com.bd
DBBL is most widely recognized for its donations to social causes and its IT investment (largest
ATM network). However it has recently stated that it will stop expansion on its ATM network as
the current numbers have exceeded demand and hence diminishing returns (if any). Although it
is widely believed it is a loss-making/subsidized unit which DBBL rationalizes as quasi CSR.
The bank is often colloquially referred to as "DBBL", "Dutch Bangla" and "Dutch Bangla Bank".
4.5 Core Objective
Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and
satisfaction and to become their first choice in banking. Taking cue from its pool esteemed
clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds and
epitomizes its vaunted marques "Your Trusted Partner"
4.6 Products and Services of DBBL
4.6.1 Card Products
1. DBBL-NEXUS Classic Card (Debit Card)
2. DBBL-NEXUS Maestro card (Debit Card)
3. DBBL-NEXUS VISA Electron card (Debit Card)
4. DBBLNEXUS Silver OD card (Credit Card)
5. DBBL-NEXUS Gold OD card (Credit Card)
4.6.2 IT Products
4.6.2.1 Truly Online Banking
DBBL’s truly Online Banking is a fully automated real-time, any-where, any-way banking
service which covers 24 hours a day and 365 days in a year un-interrupted banking services.
DBBL has selected all the necessary items for truly online banking. The truly online banking is
officially being inaugurated on 3rd January, 2005. In this unique real-time, any-where, any-way
banking program of DBBL, the valued customers and trusted partners will enjoy a full range of
modern banking services at desired speed, absolute accuracy and competitive price.
DBBL are fully aware of the confidentially and security of the customers personal and account’s
information stored into their computer systems. The confidentiality and security of the
customer’s data is achieved by establishing four layers of security at application, network,
database and operating system levels.
4.6.2.2 Electronic and Mobile Banking
“You Dream it, Dutch-Bangla Bank will create it”
Dutch-Bangla Bank offers a complete electronic banking facility for your company around the
clock. Most multi-nationals use this service because it is advanced, secure and affordable. DBBL
creates a custom banking service to suit any business of any size. The services have a wide range
that includes cash flow services, distribution banking and salary accounts. If a company knows
what type of custom and tailored banking service they need, DBBL can provide it instantly and
at minimal cost (usually free of charge).
There are hundreds of companies using this type of services from DBBL and they also include
the largest companies and multi-nationals operating in Bangladesh. DBBL has a world-class
banking system used by many of the world's top banks and the largest electronic banking
infrastructure to provide your company with any type of custom banking services you desire.
For example for your starting point, DBBL has created Employee Banking program which
allows:
Seamless and error free distribution of salaries
Providing employees with timely salary payments
Lower manpower needed
Reduces cash theft and misappropriation
Transactions are properly logged for your easy reference
Highly secure way of distributing money
No cash at hand in the office, all cash finally distributed through the largest ATM
network in Bangladesh
Dutch-Bangla Bank Limited (DBBL) has for the first time introduced its mobile banking service
expanding the banking service from cities to remote areas. Bangladesh Bank Governor Atiur
Rahman yesterday inaugurated the service by depositing Tk 2,000 and withdrawing Tk 1,500
through Banglalink and Citycell mobile networks in Motijheel area.
4.6.2.3 Wide Range of ATM & POS
Now DBBL has 1500 ATM booth as on 09.08.2011and gives 24 hours service with carefully.
ATM services to motivate new customers for opening new account and join with DBBL.
4.6.2.4 Internet Banking
DBBL Internet Banking enables customer to access his/ her personal or business accounts any
time any where from home, office or when travelling. Internet Banking gives customers freedom
to choose his/her own banking hours. It can save time, money and efforts. It’s fast, easy, secure
and best of all.
4.6.2.5 SMS and Alert Banking
It is the new elements of IT products. For SMS and Alert banking-
Customer need to have an account with DBBL
Send an application in the specified format for SMS and Alert banking
DBBL will provide the customer with a pin to carry on the transaction with SMS banking
Three types of Alert banking DNNL provides their customers-
Debit Alert: Whenever a debit transaction is initiated at the account for an amount or higher,
specified by the customer in the application form, a debit alert will be generated and sent to the
customer’s mobile phone.
Credit Alert: Whenever a credit transaction is initiated at the account for an amount or higher,
specified by the customer in the application form, a credit alert will be generated and sent to the
customer’s mobile phone.
Month-end-balance Alert: The customer is sent out a notification of the account balance at end
of every month. The alert intimates to the customer the account number and balance.
4.6.2.6 Fast Track Service
During the Q1 of 2010, Dutch Bangla Bank Ltd. introduced "Fast Track" in the country. Fast
Track is first of its kind in the country that is like a mini branch. Along with the generic ATM
withdrawal service, it lets the customer deposit small amounts of money to DBBL account! The
limit is currently 20,000 BDT. Moreover, the Fast Track also provides account opening service
and loan information. As on 10 October 2010, DBBL has installed 50 numbers of Fast Tracks in
Dhaka, Chittagong and Sylhet cities. Customer can now deposit from the fast track and one is
very close to their house.
Here are some information about “Fast Track” that may be useful for you-
You can withdraw money 24 hours. There are multiple ATM booths in each “Fast Track”
You can deposit money from 9am to 10pm
You can deposit up to 20,000 BDT at “Fast Track”. I appreciate this policy as otherwise
big clients will rush here causing problems to small customers like me
They are open all day except Friday and government holidays. That mean, usually, you
can bank on Saturday too. Hurray!
You can open account from here
You can discuss about SME loan here
You won’t have to pay any fees for depositing money. Their branches charge fee when
you deposit in account from outer zone of account. But it is fully free at “Fast Track”
4.6.3 Retail Banking Products
DBBL Life Line
From the basket of life-line, DBBL is offering a complete series of credit facilities (i. e. health,
education, professional, marriage, travel, festival, dream come true, care, and general line) for
individual service holders, professional and self-employed persons.
DBBL Health Line
Hospitalization or other emergency medical needs and to purchase body fitness equipments
DBBL Education Line
For Higher education purpose and Tuition fees or other Educational expenses/ to purchase of
computer etc
DBBL Professionals Line
Purchase of Professional equipments and for Office renovation/decoration
DBBL Marriage Line
To meet marriage expenses for him/her and Marriages in the family
DBBL Travel Line
For Honeymoon trip, abroad or in the country and For Family trip, abroad or in the country
DBBL Festival Line
To enjoy festive period and Gift for the family/in laws/relatives
DBBL Dreams Come True Line
To purchase TV, Fridge, Furniture, Home Theatre, Motor Cycle, AC etc, to decorate/renovate
own Home/Car
DBBL Care Line
Loan for fulfillment of parents need/dream, To purchase economy car for the family (i.e. to
purchase low cost second hand car)
DBBL General Line
Other legitimate purposes which do not fall under the above mentioned specific lines. To
purchase a new/re-conditioned car and Refinancing of availed car
DBBL Home Line
To purchase a flat, Refinancing of owned house property, Home renovation and Extension /
construction of building
Full Secured Lines
Loans for family expenses and any other valid purposes
Recharge Line
OD facility against security and salary
DBBL Future Line
DBBL Deposit Plus Scheme (DPS), DBBL Periodic Benefit Scheme (PBS), DBBL Bachelor
Dergun Scheme (BDS), DBBL Children Education Savings Scheme (CHESS), DBBL Pension
Plus (PP)
4.6.4 Other Banking Products
4.6.4.1 Deposit
Savings Deposit Account, Current Deposit Account, Short Term Deposit Account, Resident
Foreign Currency Deposit, Foreign Currency Deposit, Convertible Taka Account, Non-
Convertible Taka Account, Exporter's FC Deposit (FBPAR), Current Deposit Account-Bank,
Short Term Deposit Account-Bank
4.6.4.2 Term Deposit
MONTHLY TERM DEPOSIT, TERM DEPOSIT 3 MONTHS, TERM DEPOSIT 6 MONTHS,
TERM DEPOSIT 12 MONTHS, TERM DEPOSIT 12 MONTHS, TERM DEPOSIT 24
MONTHS, TERM DEPOSIT 24 MONTHS 1 Year PAYOUT, TERM DEPOSIT 36 MONTHS,
TERM DEPOSIT 36 MONTHS 6 MONTHS PAYOUT, TERM DEPOSIT 36 MONTHS 1 Year
PAYOUT, TERM DEPOSIT ABOVE 36 MONTHS, MONTHLY TERM DEPOSIT BANKS,
TERM DEPOSIT 3 MONTHS BANKS, TERM DEPOSIT 6 MONTHS BANKS, TERM
DEPOSIT 12 MONTHS BANKS, 1 MONTH TD NFCD, 3 MONTHS TD NFCD, 6 MONTHS
TD NFCD
4.6.4.3 Loan Advances
Life Line (a complete series of personnel credit facility), Loan against Trust Receipt, Transport
Loan, Real Estate Loan (Res. & Comm.), Loan against Accepted Bill, Industrial Term Loan,
Agricultural Term Loan, Lease Finance, Other Term Loan, FMO Local currency Loan for SME,
FMO Foreign currency Loan, Cash Credit (Hypothecation), Small Shop Financing Scheme and
Overdraft.
5. Banking Industry of Bangladesh
The gradual improvement in the overall policy environment has enabled Bangladesh to improve
its economic performance in recent years. A successive government in Bangladesh has been
confronted with the problem of stimulating the economic growth rate in a country where a
substantial segment of the population lives below the subsistence level. Economic policies are
still guided by five year plans. Nevertheless, some progress has been made over the years, such
as self -sufficiency in food grain production, reducing the population growth rate, poverty
alleviation and boosting export income. The GDP growth per annum has been about 5.8 percent
on an average from 2009-2010.
The Banking Industry in Bangladesh is one characterized by strict regulations and monitoring
from the central governing body, the Bangladesh Bank. The chief concern is that currently there
are far too many banks for the market to sustain. As a result, the market will only accommodate
only those banks that can transpire as the most competitive and profitable ones in the future.
5.1 Laws for Private Bank in BangladeshLaws that directly regulate the banking system of Bangladesh are: Bangladesh Bank Order 1972;
Bank Company Act, 1991; Bangladesh Bank (Nationalization) Order 1972; Companies Act 1913
and 1994; Deposit Insurance Order 1984; Bankruptcy Act 1997; Insolvency Act 1920; Financial
Court Act 1990; Foreign Exchange (Regulation) Act 1986; Financial Institutions Act 1993;
Financial Institutions Rules 1994; and Co-operative Societies Ordinance 1984.
Laws that indirectly influence the banking system and for which references are made in the
Banking Company Act 1991 are: Code of Civil Procedure 1898; Code of Criminal Procedure
1898; Evidence Act 1872; General Clauses Act 1897; Limitations Act 1908; Negotiable
Instruments Act 1881; Penal Code 1860; Trust Act 1882; Transfer of Property Act; and
Bangladesh Chartered Accountant Order 1973. [Abul Kalam Azad]
5.2 Performance of Banking Sector
The banking sector of Bangladesh comprises of four categories of scheduled banks. These are
state-owned commercial banks (SCBs), state-owned development finance institutions (DFIs),
private commercial banks (PCBs) and foreign commercial banks (FCBs). The number of banks
remained unchanged at 48 in 2009. These banks had a total number of 7481 branches as of 03-
09-09. The number of bank branches increased from 6886 to 7481 owing to opening of new
branches by the PCBs during the year. Structure of the banking sector with breakdown by type of
banks is shown in following-
Currently, the major financial institutions under the banking system include:
Bangladesh Bank Commercial Banks Islamic Banks Leasing Companies Finance Companies
Of these, there are four nationalized commercial banks (NCB), 8 specialized banks, 10 foreign banks, 23 domestic private banks and 7 Islamic Banks currently operating in Bangladesh.
Figure 08: Different Banks in Bangladesh Source: BB Annual Report 2010-11
All local banks must maintain a 4% Cash Reserve Requirement (CRR), which is non-interest
bearing and a 16% Secondary Liquidity Requirement (SLR). With the liberalization of markets,
competition among the banking products and financial services seems to be growing more
intense each day. In addition, the banking products offered in Bangladesh are fairly
homogeneous in nature due to the tight regulations imposed by the central bank.
Competing through differentiation is increasingly difficult and other banks quickly duplicate any
innovative banking service.
5.3 Market Segment
The banking industry of Bangladesh is mainly divided into two sectors, such as Specialized
Banks (SBs) and Commercial Banks (CBs). The Specialized Banks are those banks that deal
with specific sectors or industry of an economy. For instance, Bangladesh Krishi Bank (BKB)
only deals with the agricultural sector of the economy; Bangladesh Shilpa Bank (BSB) only
deals with the industrial sector of the economy etc.
On the other hand, Commercial Banks are Scheduled Banks that are operating in the country
under the rules and regulations of the Central Bank. Commercial banks in turn can be grouped as
Nationalized Commercial Banks (NCBs); Foreign Commercial Banks (FCBs) and Private
Commercial Banks (PCBs) with three different segments, such as 1st Generation Private
Commercial Banks 2ndGeneration Private Commercial Banks, and 3rd Generation Private
Commercial Banks. The Bangladesh Bank (BB) Order created in 1972, authorized Bangladesh
Bank (BB) as the central bank of the country. Bangladesh Bank Order 1972 and the Banking
Companies Act 1991 mainly guide the commercial banks in Bangladesh. Commercial Banks in
Bangladesh are not allowed to do business other than just banking. Normal activities include
borrowing, raising or taking up of money, lending or advancing of money with or without
security. They are also authorized to issue letters of credit, trade in precious commodities and
buying and selling of foreign goods excluding foreign bank notes. They are also authorized to
trade in bills of exchange, promissory notes, coupons, drafts, debentures, certificates and other
instruments approved by Bangladesh Bank (BB). Banking companies are required to provide
safe vaults and are authorized to collect money and securities. All banks operating in Bangladesh
with different paid-up capital and reserves having a minimum of an aggregate value of Tk. 5
million and conducting their affairs to the satisfaction of the Bangladesh Bank have been
declared as scheduled banks in terms of section 37(2) of Bangladesh Bank Order 1972. Now in
terms of section 13 of Bank Company Act, 1991, the minimum aggregate capital is Tk. 200
million. After liberation, the banks operating in Bangladesh (except those incorporated abroad)
were nationalized. These banks were merged and grouped into six commercial banks. Of the
total six commercial banks, Pubali Bank Ltd. and Uttara Bank Ltd. have subsequently been
transferred to the private sector with effect from January 1985. Moreover at present there are 58
scheduled banks operating all over the country. Out of these, 16 are state-owned (including eight
specialized banks), 33 are private commercial banks (including seven Islami banks) and the
remaining 12 are foreign commercial banks (including one Islami bank).
The name of all the banks operating in Bangladesh and their year of incorporation are
given-
NAME OF THE BANK YEAR OF INCORPORATION
NAME OF THE BANK
YEAR OF INCORPORATION
Nationalized Commercial Banks Specialized BanksSonali Bank Ltd. 1972 BKB 1972Janata Bank Ltd. 1972 BSB 1972Agrani Bank Ltd. 1972 BSRS 1972Rupali Bank Ltd. 1972 RAKUB 1987
BASIC 1988Private Commercial Banks
1st Generation PrivateBanks
(1982 – 1988) 2nd Generation PrivateBanks
(1992 – 1996)
Arab Bangladesh Bank Ltd.
1982 Eastern Bank Ltd. 1992
Uttara Bank Ltd. 1983 National Credit & Commerce Bank Ltd.
1993
National Bank Ltd. 1983 Prime Bank Ltd. 1995Islami Bank
Bangladesh Ltd.1983 Dhaka Bank Ltd. 1995
IFIC Bank Ltd. 1983 Southeast Bank Ltd. 1995United Commercial
Bank Ltd.1983 Al-Arafa Islami Bank
Ltd.1995
The City Bank Ltd. 1983 Social InvestmentBank Ltd.
1995
Pubali Bank Ltd. 1984 Dutch-Bangla BankLtd.
1996
Al-Baraka Bank Ltd. 1987Foreign Commercial Banks3rd Generation Private
Banks(1998 – Present)
Bangladesh CommerceBank
1998 Standard CharteredGrind lays Bank
1905
Mercantile Bank Ltd. 1999 Standard CharteredBank
1948
Standard Bank Ltd. 1999 American ExpressBank Ltd.
1996
One Bank Ltd. 1999 State Bank of India 1975Exim Bank Ltd. 1999 Habib Bank Ltd. 1976
Premier Bank Ltd. 1999 Muslim CommercialBank
1994
Mutual Trust Bank Ltd. 1999 National Bank ofPakistan
1994
First Security Bank Ltd. 1999 CITI Bank, N.A. 1995
Bank Asia Ltd. 1999 HSBC 1996The Trust Bank Ltd. 1999 Social Islami Bank 1997Jamuna Bank Ltd. 2001 Credit Agricole
Indosuez1997
Shahjalal Islami BankLtd.
2001 Hanvit Bank 1999
BRAC Bank 2001 Mashreq 2001Table 05: Name of the Banks operating in Bangladesh Source: Bangladesh Bank Ltd
5.4 Current Status of Banking Industry
The Banking Industry of Bangladesh at present is in the growth stage. Almost every year new
private banks are coming up, new branches are opening within two to three months, and new
customers are coming to open an account in different banks. As a result, according to July 30,
2004 there are 4 nationalized commercial banks, 5 specialized banks, 30 local private
commercial banks and 12 foreign commercial banks operating in this country. Moreover, as on
July 30, 2004 there are 27,881,322 numbers of deposit accounts and 7,462,785 numbers of
advance accounts in the banks.
5.5 Characteristics of Islamic and Conventional Bank
Firstly show the main differences for the interest of the readers, the distinguishing features of the
conventional banking and Islamic banking are shown in terms of a box diagram as shown below:
Conventional Banks Islamic Banks
1. The functions and operating modes of conventional banks are based on manmade principles.
1. The functions and operating modes of Islamic banks are based on the principles of Islamic Shariah.
2. The investor is assured of a predetermined rate of interest.
2. In contrast, it promotes risk sharing between provider of capital (investor) and the user of funds (entrepreneur).
3. It aims at maximizing profit without any restriction.
3. It also aims at maximizing profit but subject to Shariah restrictions.
4. It does not deal with Zakat. 4. In the modern Islamic banking system, it has become one of the service-oriented functions of the Islamic banks to collect and distribute Zakat.
5. Leading money and getting it back with interest is the fundamental function of the conventional banks.
5. Participation in partnership business is the fundamental function of the Islamic banks.
6. Its scope of activities is narrower when 6. Its scope of activities is wider when
compared with an Islamic bank. compared with a conventional bank. It is, in effect, a multi-purpose institution.
7. It can charge additional money (compound rate of interest) in case of defaulters.
7. The Islamic banks have no provision to charge any extra money from the defaulters.
8. In it very often, bank’s own interest becomes prominent. It makes no effort to ensure growth with equity.
8. It gives due importance to the public interest. Its ultimate aim is to ensure growth with equity.
9. For interest-based commercial banks, borrowing from the money market is relatively easier.
9. For the Islamic banks, it is comparatively difficult to borrow money from the money market.
10. Since income from the advances is fixed, it gives little importance to developing expertise in project appraisal and evaluations.
10. Since it shares profit and loss, the Islamic banks pay greater attention to developing project appraisal and evaluations.
11. The conventional banks give greater emphasis on credit-worthiness of the clients.
11. The Islamic banks, on the other hand, give greater emphasis on the viability of the projects.
12. The status of a conventional bank, in relation to its clients, is that of creditor and debtors.
12. The status of Islamic bank in relation to its clients is that of partners, investors and trader.
13. A conventional bank has to guarantee all its deposits.
13. Strictly speaking and Islamic bank cannot do that.
6. Data Analysis
6.1 Analysis on Strategy of Product and Services of SJIBL
It can be seen from above that SJIBL introduced more than 40 Islamic banking products &
services. Another distinct edge is that SJIBL facilities cater for all categories of customers
including individual, small businesses, commercial and corporate customers. The marketing
strategies that followed by SJIBL are below:
6.1.1 Product Differentiation
This strategy is taken by SJIBL in both its deposit and financing facilities. Islamic banking
facilities are available at SJIBL. They introduced different deposits and investment scheme under
Islamic mode. So their products are different than Dutch Bangla Bank Limited). The marketer or
the sales executives highlights the Islamic Banking perspectives because most of the customers
are Muslim in our Country. This Islamic Banking made differences with the other
commercial/private banks.
6.1.2 Product Variation
SJIBL has a variety of product under investment and deposit scheme. Above ten deposit scheme
is more difference from DBBL scheme and reliable from the Dutch Bangla Bank Limited. Lead
follows of the variation life standards. The different professional people take these opportunities
for gaining. What types of Halal income Islam can support to the business that way can run in
Bangladesh some Islami Bank. Islam cans Halal to the Business and Haram to the interest. But
give this facility only Islami Bank for doing business.
6.1.3 Product Innovation
This is the important strategy employed by SJIBL is the usage of Islamic terminology is
promoting its products to customers. For example, Arabic words such as Ijraa, Bai- Muajjal and
Shirkatul Melk are used in labeling various deposit facilities. SJIBL’s innovative e-banking
products and services are another source of competitive advantage it has over other conventional
bank. The introduction of several e-banking services namely internet baking, short messaging
service (SMS) banking has enabled SJIBL to distinguish itself prominently from other players in
the market. The SMS banking service offers different services and transactions, including inquiry
funds transfer, financing payments.
6.2 Analysis on Strategy of Products and Services of DBBL
DBBL already made goodwill for providing different kinds of product and highest number of
(1500) ATM booths. Like other competitors they also providing different kinds of loan and
deposits schemes. To attract the customer they are following internal and external marketing
strategy. But I would like to discuss about the external marketing strategy. They also follow
some better and attractive marketing strategies to introduce their new product. DBBL retains
following marketing strategies-
6.2.1 Product Innovation
DBBL’s innovative e-banking products like-Truly Online Banking, Large coverage area of ATM
& POS, Internet Banking and SMS & Alert Banking and card products (Debit & Credit) are
another source of competitive advantage it has over other conventional banks.
6.2.2 Product Variation
DBBL offers a large variety of products. On their website they put their products and services in
different categories than other banks. The categories which were used are Accounts, Living and
House loan, Private Loan and Credit, Saving, Card and payments, Internet –and Phone Services
and Youth & Student. Payment services, Savings and Investing, Loaning, Mortgages, Insurance,
Modern are banking and many more.
6.2.3 Product Differentiation
DBBL offers a wide range and several of products to its existing and for new customers. Since
products and services from financial banks are mainly homogenous, the main focus on greater
noticeable differences with the other competitors. The only great differences found were some
extra services that DBBL offers to its customers. The first service is DBBL seems to offer is the
Mobile ATM service. They introduced 5 types of card product, retail banking product, life line
product, e-product that differentiated DBBL much more.
7. Comparative Analysis
7.1 Promotional Strategy
7.1.1 Promotional Strategy of SJIBL
Advertising
The bank goes for both primary and supportive media for their promotional activities which are
briefly describe below.
A. Primary Media
(1) Print Media - The bank gives advertisement in the News paper, Tabloid and Magazine about
their various services. They provide various folders of the service schemes containing essential
information about the service.
(2) Live Media – Bank uses various TV channels for the advertisement of its services. Now a
day’s internet is also treated as media of advertisement. SJIBL have no advertisement.
B. Supportive Media
The bank also uses various supportive media such as Billboard, Transit ad, Banner twinjets.
Some banks also take part in various exhibitions.
Public Relation
This is one type of promotional strategy taking by the bank. In case of big deposits the bank
maintains the following tasks-
Imply a customer relationship price
Continuously monitoring the transactions of accounts. If possible prepare a separate
database to monitor the average transaction pattern
Continuously maintain a good relationship to stay close, send gifts, cards in occasions,
etc
Give financial advice about the customer’s business
Gives suggestion about the proper use of customer’s money
Motto: “Committed to Cordial Service”
In case of small - House deposit the bank has separate marketing strategy to maintain its services
Imply any of the strategy except upscale pricing
Monitor the accounts periodically – usually once every month
Provide additional services like ATM card reduce fee, utility services and minimized
relation etc
Provide cost free assistance for SME, micro credit
Personal Selling
This is one of strong elements of promotional mix which is practiced frequently in the banking
sector now-a-days. This needs high interpersonal skill as well as high motivational capability of
the employee. The bank does its promotional activities through its own employees. The
employee helps to building partnership relation between the Bank and its customers.
7.1.2. Promotional Strategy of DBBL
Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a
commitment to social responsibility. "Profits alone" do not hold a central focus in the Bank's
operation; because "man does not live by bread and butter alone". DBBL believes in its
uncompromising commitment to fulfill its customer needs and satisfaction and to become their
first choice in banking.
Motto: "Your Trusted Partner".
Promotional Mix: DBBL is the first bank who introduce mobile ATM booth. They have 1500
ATM booths which is the highest booth network in Bangladesh. Their promotional strategy is so
strong and well riches. Beside primary and supportive media they are strongly involved with
social activities. Dutch-Bangla Bank Limited has been again nominated for the Asian CSR
Awards 2006. DBBL has decided to participate in the category of
EDN- Support and Improvement of Education
POV- Poverty Alleviation
Concern for Health
7.2 Analysis on Questionnaire
In this analysis part I have tried to show the real situation through different statistical analysis
and for better understand I have shown every thing with the help of bar chart-
Higher satisfaction of current marketing strategy to customers
Figure 7.1: Current Marketing
Here the statement is “Higher satisfaction of current marketing strategy to customers”. From the above chart it shows that most of the respondents agree with the current marketing offers. They deemed that need more gaining offers for the customers. Still SJIBL is the stable position rather than DBBL.
Competitive Interest rate
Figure 7.2: Competitive Interest Rate
Here the statement is “Interest Rate” from the above chart it shows that most of the respondents agree with SJIBL. DBBL is not providing competitive interest rate rather than SJIBL.
Well performance of Credit/Investment Risk Management (C/IRM)
Figure 7.3: C/IRM
Here the statement is “Well performance of Credit/Investment Risk Management (C/IRM)” from the above chart it shows that most of the respondents agree with SJIBL. Because Islami Bank all time take risk between conventional banks. Islami banks always can give invest with their customers. So it is most important for Islami banks to take more risk.
Service provided door to door by Branch banking
Figure 7.4: Branch Banking
Here the statement is “Service provided door to door by Branch banking” from the above chart it shows that most of the respondents strongly agree with DBBL. Because DBBL starting their business from 1996 but SJIBL start from 2001 so it can easily understand SJIBL week this side from DBBL.
Easily access with large coverage area of ATM service
Figure 7.5: ATM Service
Here the statement is “Easily access with large coverage area of ATM service” from the above chart it shows that most of the respondents strongly agree with DBBL. DBBL doing their business based on the ATM. Here SJIBL doing joint venture with the DBBL, Brac Bank, Q-cash Banks and VISA.
Simple and rapidly money transfer by Online Banking System
Figure 7.6: Online Banking
Here the statement is “Simple and rapidly money transfer by Online Banking System” from the above chart it shows that most of the respondents strongly agree with DBBL. DBBL and SJIBL doing their business online based. Both banks follow and use 21th century technology that is providing easily accepts the facility.
Service first strategy
Figure 7.7: Service First
Flexibility of Loan procedure and system
Figure 7.8: Loan Procedure
Doing Corporate Social Responsibility (CSR)
Figure 7.9: CSR
Profitable Deposit Scheme
Figure 7.10: Profitable Deposit Scheme
Low Service charges
Figure 7.11: Service Charges
Cooperative with their Customer
Figure 7.12: Cooperativeness
Nice Environment in office
Figure 7.13: Official Environment
Overall, I am satisfied on this Bank
Figure 7.14: Satisfaction of the Bank
8. Findings & Recommendations
Findings
While working on Eskaton Branch of SJIBL, I have attained a newer kind of experience and
after collecting and analyzing data I have some findings. These are my personal view to research
work-
SJIBL mainly includes several types of loan facilities and generally the bank prefers term
investment facilities, but DBBL has more credit facility than SJIBL
SJIBL card products are good facilitated but DBBL is better and wide ranges service
provider in Bangladesh and took comparative position
SJIBL has a small number of ATM booth and POS center but DBBL increasing their
ATM services day by day
SJIBL corporate social responsibility (CSR) is good but not more than DBBL
In terms of repayment large loan has performed better than small sized loan than other
comparative conventional bank
This bank started on-line service. As a result customers are getting the full service by the
on-line
Branches are very much enthusiastic to provide more service to the clients. They are very
much prompt to give decision to their valued client
The Bank has strong correspondent relationship with other commercial banks & the Bank
is a member of SWIFT service community
Less motion of rural development program
RecommendationsActivities of SJIBL are almost as same as other private Islami banks. Because the total
procedures/systems are operate by the guidelines of Shariah based, Bangladesh Bank and
international rules and regulations. So, the Investment policy, service, internal decoration etc.
create mostly the difference among all those banks. For the improvement of the service the
following measures should be taken-
The bank can take new attempts to increase investment
The bank can introduce new investment product to attract professionals by the strong
advertisement
SJIBL should open more ATM booth in crowed area and good online services
For monitoring and inspection of the current status of the borrowers a new wing of the
investment division should be introduced by the bank
SJIBL will have to adapt their functioning in line with modern business practices, though
improvement and expansion of the range of dealing in the banking sector
Thus, it is necessary for them to provide comprehensive banking and investment services
to clients and simultaneously to take advantage of modern technological breakthroughs in
areas such as electronic communication, computerization etc. like DBBL
The bank should try to increase its advance-deposit ratio. So to ensure that fund does not
necessarily remain idle
SJIBL must rationalize portion of loans and advances to different sector for risk
diversification. The bank also should go for long-term investment, which will diversify
the risk
The bank should take its loan products to customers by publishing brochures and
advertising them under different 'brand' names
The bank should ensure proper training of its staffs. Improve quality of delivery of
service
Employees, compensation package with extreme benefits should be increased to boost up
the spirit and overall motivational level. Because highly motivated personnel can only
provide high level of performance
9. Conclusion
SJIBL is a leading Islami bank in Bangladesh with superior customer bases that are loyal,
faithful, worthy towards the bank. The service provided by the young energetic officials of the
SJIBL is very satisfactory. As an Islami bank SJIBL has to follow the rules of Bangladesh bank
despite the fact that these rules sometime restrict the foreign business to some extent. SJIBL is
one of the most potential Islami banks in the Islami banking sector. But it has not a large
portfolio with huge assets to meet up its liabilities and the management of this bank is equipped
with the expert bankers and managers in all level of management. So it is not an easy job to find
out the drawback of this bank. For that the bank should give more attention on marketing
strategy for its substantial growth. 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. The Bank shall continue to explore new fields of
investment and take steps to open new branches for banking. The bank will 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.
References
TextsPRINCIPALS OF MARKETING by Kotler Armston, Edition: 2004, 10th
MARKETING RESEARCH by Philip Kotler
Journal and Magazines
Annual report 2010 of SJIBLBrochures of SJIBLAnnual Report of 2010 DBBLBangladesh Bank statistic Bureau
Websites
http://www.shahjalal Islami Bank.com.bd/
http://www.dbbl.com.bd/
http://www.shahjalalbank.com.bd/about.asp
http://www.shahjalalbank.com.bd/Financial_Statements.asp
http://www.shahjalalbank.com.bd/Shariah.asp
http://www.Bangladesh Bank.com.bd/
Dear Sir/Madam
This questionnaire has prepared for a report on “Marketing strategy of Shahjalal Islami Bank Limited
(SJIBL) compared with Dutch Bangla Bank Limited (DBBL)”. I ensure you that your information will be
kept in confidential and the responses will be aggregated for analysis. I appreciate your participation.
Name:
Age: Gender: ( ) Male ( ) Female Profession:
This questionnaire has developed on the basis of Likert Scale, SA-5 defines Strongly Agree, A-4 defines
Agree, N-3 defines Neutral, D-2 defines Disagree, and SD-1 defines Strongly Disagree.
In which bank you have an account? ( ) SJIBL ( ) DBBL
SA A N D SD
Variables 5 4 3 2 1
1 Higher satisfaction of current marketing strategy to customers
2 Competitive Interest rate
3 Well performance of Credit/Investment Risk Management (C/IRM)
4 Service provided door to door by Branch banking
5 Easily access with large coverage area of ATM service
6 Simple and rapidly money transfer by Online Banking System
7 Service first strategy
8 Flexibility of Loan procedure and system (If any)
9 Doing Corporate Social Responsibility (CSR)
10 Profitable Deposit Scheme
11 Low Service charges
12 Cooperative with their Customer
13 Nice Environment in office
14 Overall, I am satisfied on this Bank
Write down some recommendation regarding the performance of the Bank.
………………………………………………………………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………
Thanks for your cordial participation