Report on Shahjalal Islami Bank Limited

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Chapter: One

Introduction

1.1 Preface:
Generally by the word “Bank” we can easily understand that the financial institution deals with money. But there are different types of banks like; Central Banks, Commercial Banks, Savings Banks, Investment Banks, Industrial Banks, Co-operative Banks etc. But when we use the term “Bank” without any prefix, or qualification, it refers to the ‘Commercial banks’. Commercial banks are the primary contributors to the economy of a country. So we can say Commercial bank is a profit-making institution that holds the deposits of individuals & business in checking & savings accounts and then uses these funds to make loans. For these people and the government is very much dependent on these banks as the financial intermediary. As banks are profit -earning concern; they collect deposit at the lowest possible cost and provide loans and advances at higher cost. The differences between two are the profit for the bank.

Banking sector is expanding its hand in different financial events every day. At the same time the banking process is becoming faster, easier and the banking arena is becoming wider. As the demand for better service increases day by day, they are coming with different innovative ideas & products. In order to survive in the competitive field of the banking sector, all banking organizations are looking for better service opportunities to provide their fellow clients. As a result, it has become essential for every person to have some idea on the bank and banking procedure.

Internship program is essential for every student, especially for the students of Business Administration, which helps them to know the real life situation. For this reason a student takes the internship program at the last stage of the BBA Program, to launch a career with some practical experience.

The Banking Companies Ordinance was promulgated on the 7th June 1962. This has been adopted in Bangladesh and is applicable to the banking companies only. Nothing of this ordinance shall apply to a co-operative Securities Act (1912).

Shahjalal Islami Bank Limited has a vision and mission to improve the financial sector of Bangladesh i.e. economic condition of Bangladesh by providing effective and innovative banking and financial product in financial market. However, in every economy of the world financial sector is highly regulated sector. Therefore, financial products of every bank are almost same as same law & regulations regulate them. Commercial Banks, as the very name indicates, function primarily as deposit takers and lenders to trade and commerce. But through a historical process, these Banks are now also engaged in long medium and short term industrial lending, agricultural financing including development financing. Commercial Banks are of three types Nationalized, Local Private and Foreign Commercial Banks.

1.2 Background of the study
The BBA program (Stamford University Bangladesh) is designed to focus on theoretical and professional development of people open to take up business as a profession as well as service as a career. This internship provides the students to link up their theoretical knowledge into practical fields. This report is prepared for the internship program consisting of a major in depth study of the “overall activities of Shahjalal Islami Bank in banana branch”. This program enables a student to develop his analytical skill and scholastic aptitude.

1.3 Rational of the study

In today’s modern and globalization world, business sector is competitive. Theoretical knowledge is not enough for a business student because there is a gap between theoretical knowledge and practical field. It is more competitive in the financial institution like bank. Now a day’s local banks are playing a key role for economic growth and development of the country. In that case Shahjalal Islami Bank is playing a pioneer role for structural development of the...
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