Fsibl

Introduction Moslem bank buildinging in Bangladesh There are shortly seven commercial banks operating under(a) Islamic principles. They are 1. Islami Bank Bangladesh Limited, 2. Al-Arafah Bank Ltd. 3. Social Investment Bank Ltd, 4. Exim Bank Ltd, 5. Shahjalal Islami Bank Ltd. 6. Icb Islamic Bank Ltd 7. root certification Islami Bank Ltd. HISTORICAL BACKGROUND First Security Islami Bank Limited (FSIBL) was incorporated in Bangladesh on 29 August 1999as a banking company under Companies Act 1994 to carry on banking business.It obtainedpermissionfrom Bangladesh Bankon 22September 1999to commence itsbusiness. TheBankcarries banking activities through its Fifty common chord (53) branches in the country. The commercialbanking activities of the bank encompass a wide range of hunt including accepting deposits,makingloanwords,discounting bills, abideingmoney transferandforeignexchangetransactions,andperforming separate related services suchas safekeeping,collectionsandissuingguara ntees,acceptances and letter of credit. At the beginning, FSIBL started their business with traditional commercial banking services.However, from 2008 they converted their business to Islamic Banking with Islamic Shariah Act. The FSIBL has played a pioneering role in shaping the future of the Banking industry inBangladesh since its inception. The Bank started in 1999 with 14 branches and now it has 53branches in Bangladesh and latterly the bank introduce an Exchange House in Canada. The Bank as well as maintains a comprehensive correspondent relationship with top ranking banks. FSIBL has already started their on-line, SMS and asynchronous transfer mode banking facilities for their clients. 2. 2 Vision of the Bank Wherever you are, you can Bank with us is the motto ofFirst Security Islami Bank. FSIBL isprepared to meet the challenge of the 21st one C well ahead of time. To cope with the challengeof the new millennium it hired experienced and well-reputed banker of the country fro m theinception. Thebankhasefficientanddedicatedprofessionalandequippedwithmodemtechnology to provide the outdo service in the need of the people and thus to realize its vision. Sothe Bank defamed its Vision to be the most efficient Islamic Bank in harm of customer serviceprofitability and technology applicationMission To develop & deliver the most innovative products, manage customer experience, deliver qualityservices that contributes to brand strength, establishes a competitive advantage and enhancesprofitability, thus providing value to the stakeholders of the bank 2. 4 Goal of the bank Toexceed customer expectations throughinnovative Islamic financial products &servicesandestablish a strong presence to recognize shareholders expectation and optimize their rewardsthrough dedicated work force. . 5 Special Features of FSIBL All activities of FSIBL are conducted under a profit/loss based system according toIslamic Shariah to get the nation rid of Usury. Its investment policies u nder divergent modes are fully Shariah compliant and wellmonitored by the board of Shariah Council. FSIBLhasincludedonlinebankinginits widerangeofservices. Bangladeshisoftware has been introduced in this feature topromote the local developers. FSIBL regularly arranges its AGMs (Annual familiar Meeting).Whenever neededEGMs (Extraordinary General Meeting) are also arranged. They believe in providing dedicated services to the clients imbued with Islamic spiritof brotherhood, peace andfraternity. The bank is committed towards establishing a welfare-oriented banking system tomeet the needs of minor income and underprivileged class of people. The Bank upholds the Islamic values of establishment of a justified economic systemthrough social emancipation and equitabledistribution of wealth. FollowingtheIslamictraditions,itisassistingintheeconomicprogressofthesociallydeprivedpeopleinthecreationofemploymentopportunitiesandinpromotion of rural areas to ensure a balance culture of the country. 2. 6 FSIBLs Inter Division andBranch Coordination Allthe53branchesarecomputerizedunderdistributedserverenvironment. Anotherfewbranches areplanningto lightin nearfuture. FSIBL hasalready started their on-line, SMS and standard atmosphere banking facilities for their clients.FSIBLhavesetupWideAreaNetworkthroughRadio,Fiber-Optics&otheruseablecommunication media systems to provide any branch banking to their customers. guest ofonebranchisnowabletodepositandwithdrawmoneyatanyofourbranches. 2. 7 Online Banking FSIBLOnlinebankingapplicationaddressestheneedsofsmall,individualandcorporate aimholdersofthebank. Thisapplicationprovidesacomprehensiverangeofbankingservices that enable the customer to meet most of their banking requirements over the Net at anybranch. . 8 SMS Banking SMS bankingis atechnology-enabledservice erecting frombanks toits customers,permittingthem to operate selected banking services over their mobile phones using SMS messaging. FirstSecurity Islami Bank Ltd. ha s officially launched SMS banking service from December 17,2007. 2. 9 Merchant Banking FSIBLs Merchant Banking Group is strongly positioned to offer perfect financial solutions itsclients business. They specialize in the arrangement of various forms of Foreign CurrencyCredits for Corporate.FSIBL provide the resources, convenience and services to meet its clientsneeds by recording Foreign Currency credits through Commercial loans Syndicated loans Lines of Credit from Foreign Banks andFinancial Institutions FCNR loans Loans from Export Credit Agencies Financing of Imports. 2. 10 output and Services In the memorandum and articles of association of the First Security Islami Bank is revised itsarea of operation is clearly written. The product of FSIBL is targeted to fulfill that aim.Theproduct and services that are currently available are given below Depository Products First Security Islami Bank is now offering 09 depository products for mobilizing the savings ofthe general people. T here are also emphasizing on non-fund business and fee based income. Bidbond/ bid security can be issued at our customers request. FSIBL is posed to extend L/C facilities to its importers / exporters through establishment ofcorrespondent relations and Nostro Accounts with leading banks all over the world. Loan ProductsFirst Security Islami Bank offers a wide range of loan and advance product to the client forfinancing unalike purpose that fulfill the requirements of the bank and have good return to theinvestment as well as fulfil the client. Other Product and Services The bank has its concentration for new product and services development for satisfying itscustomer and increasing its customer base. They prefer now blistering service with least cost. Fordelivering faster service the bank has introduced online banking service. There are other productsand services that FSIBL has introduced.They are * Online Banking Services * Locker Services * Utility Bills * ATM services FLUCTUAT ION OF SHARE PRICE (ONE YEAR) BALANCE SHEET ANALYSYS 3. 1. 5 Types of Investment Facilities The Banks Policy is to introduce diversified / new types of Products / Product derivativesalong with usual Banking Products. At present the Bank offers the following facilities i. Investment/ Deployment of Funds a. Bai-Murabaha(DeferredLumpSum/Installment Sale)b. Bai-Muajjal(DeferredInstallment /LumpSumSale)c. Ijara (Leasing)d. Musharaka (Joint-Venture Profit-Sharing)e.Mudaraba (Trustee Profit-Sharing)f. Bai-Salam(AdvanceSale andPurchase)g. Hire-Purchaseh. manage Investmentsi. PostImportInvestmentj. PurchaseandNegotiation of Export Billsk. Inland BillsPurchasedl. MurabahaImportBillsm. Bai-Muajjal Import Billsn. Pre Shipment Investmento. Quard-ul-Hasan (Benevolent Investment) KYC Concept The Investment Officers/RM must know their customers and conduct due diligence onnew borrowers, principals and guarantors to ensure such parties are in fact who theyrepresent themselves to be i. e. , KnowYour Customer (KYC).The Banker Customer relationship would be established first off through enterprisingness of CD/STD / SB accounts. Proper introduction, photographs of the account holders / signatories,passport,TradeLicense,MemorandumandArticlesoftheCompany,certificateofincorporation, certificate of commencement of business, List of Directors, resolution, etc. i. e. all the necessary papers as per Banks policy and regulatory requirements are to beobtained at the time of opening of the account. A declaration regarding approximatetransaction to the account is to be obtained during opening of account.Informationregardingbusinesspattern,natureofbusiness,volumeofbusinessetc. istobeascertained. Any suspicious transaction must be timely addressed and brought down tothe noticeofthe directOffice /Bangladesh Bankasrequiredandalsoappropriatecorrective measures to be taken as per the direction of Bank Management/BangladeshBank SWOT analysis Strength diversify ownership pattern Strong market share Good Financial performance Good investment portfolio Comfortable Liquidity position Experienced way team Sound HR development programmes Improvement in automation Wide branch networkSignificant involvement in corporate social responsibility helplessness Unmatched asset versus capital growth Limited delegation of power Limited modern customer service facilities Moderate recovery of rescheduled investments High gigantic investment exposures Initial stage of system based internal control procedures Opportunities Investment in SME and Agro based industry Real time online banking Credit gameboard in dual currency Creation of Islamic Money market product Introduce above 5 years Islamic bond Threats securities industry pressure for increasing the SLR Overall liquidity crisis in money marketGovernment pressure to reduce investment rate Increase the capital adequacy position Findings * nearly of the costumers do not know the regulations of the investment modes. * Shortage of huma n resources in Investment Section. * Deposit schemes favoring to the customers. * Senior level executives should be to a greater extent cooperative with the subordinates. * Regarding security service of the bank, account opening and closing system, phone query, cash withdraw and deposit facility, credit profit rate, online banking, external and internal environment are o.k. to the customers. Most of the customers are service holder and businessman they like to come to FSIBL because near to residence / office / work place, better service, easier banking procedure. * Employees of the bank are more cooperative with the customers. * Employees of the bank have good acquaintance to solve the queries of the customers. * According to the customers opinion more ATM booths needed to be setup in different places. According to the data analysis customers feeling about banking in FSIBL are very satisfied. Recommendations Different types of products and services are available in FSIBL but clien ts are not concerned about that so advertisement and promotional activities should be addd. * Increasing more deposit schemes under consumer banking. * Providing prompt service in account opening. * Now a day, the online banking service is very much popular in all over the world, so the bank should try to develop in this side. * FSIBL should increase Debit card credit card facilities. * SJIBL online service should be fast accurate. The website of SJIBL is not good enough most of the pages are under construction. The page should be constructed as soon as possible. * Should increase the ATM Booths. * More manpower is required to run the business smoothly. * Employee trainings and workshops should be administered in order to give them knowledge and professionalism in customer interactions. They should be taught about how to deal with the problem of customers and problematic situations. * Physical and technological facilities should be increased in evaluating credit proposals. Experi enced and right personnel should be kept within the bank, which will lead to a quality selection of clients * SJIBL should more focus on customer needs. They need to trim more on their existing services and product innovation. * A yearly conference with the employees should be arranged where they will exchange their views with the management about different aspects. This will help to increase the efficiency of the employees. * Prompt service should be given to the customers. In this regard arranging job rotation regularly for employees to reform the skills in different types of service.This will increase the efficiency of the service. * More emphasis should be given on the customers complaint. * Informal training can be a way to improve the skills of the employee. Allocating job responsibility to the employees according to their profit. * Try to create a good image to customers through different promotional tools Conclusion First security Islami Bank Limited is one of the leading Islamic sharah based commercial bank in Bangladesh. FSIBL is committed to provide excellent service to its determine customers. The management of FSIBL always gives special efforts to uphold the interest and trust of their customers.By providing excellence service and special effort First Security Islami Bank has placed itself to a strong position among all the banks. The main focus of FSIBL is to concentrate on the consumer demand, which differentiates FSIBL with other banks. FSIBL has been successfully created a brand image Islamic sharah based in the market and is maintaining a strong position in the market. But still it has some weakness, which can be easily overcome. FSIBL has much more potential to look the existing market. So, to be the number one forever they have to be very perfect in their business.