Table of Contents

SL NO Particulars Page NO 1.0 Introduction 1.1 Introduction of the Study 1.2 Background of the Study 1.3 Objectives of the study 1.4 Scope of the Study 1.5 Methodologies 1.6 Limitation of the study 2.0 Overview of Banking Industry 2.1 Origin of the word “Bank” 2.2 Definition of Bank 2.3 History of Bank 2.4 Types of Bank 2.5 Banking scenario in BD 2.6 Banking structure in BD 2.7 Development of Banking in BD 2.8 Hierarchy Analysis 3.0 Company Profile of Shahjalal Islami Bank 3.1 About Shahjalal Islami Bank Limited 3.2 Profile of Shahjalal Islami Bank Limited. (SJIBL) 3.3 MISSION 3.4 VISION 3.5 Slogan of the Bank 3.6 Strategies 3.7 Organizational Structure 3.8 Shariah council of SJIBL 3.9 Conventional VS Islamic Banking 4.0 Project Part (Foreign Exchange) 4.1 Definition of Foreign Exchange 4.2 International regulations of foreign exchange 4.3 Foreign Exchange Mechanism 4.4 Graphical representation of Foreign Exchange Mechanism 4.5 Activities of foreign exchange 5.0 Overview of Import 5.1 Defining Import 5.2 Main Features of Import Policy 5.3 Import Mechanism 5.4 L/C Opening 5.5 Procedure involved in L/C opening 6.0 Overview of Export 6.1 Defining Export 6.2 Activities done here 6.3 Export Bill Scrutiny 6.4 Export Finance 6.5 Export L/C 7.0 Foreign Remittance 7.1 Defining Foreign Remittance 7.2 Inward Remittance 7.3 Outward Remittance 8.0 Findings & Analysis 8.1 Performance appraisal 8.2 Findings from Observation 8.3 SWOT Analysis 8.4 Problems of Foreign Exchange Mechanism 9.0 Recommendation & Conclusion 9.1 Recommendation 9.2 Conclusion 9.3 Reference

1.1 Introduction of the study

Now the world is very much competitive and the banking sector of has grown day by day. As a financial institution, most of the banks perform some common functions but there is some difference between conventional banking and Islamic banking. So everybody has to be expert in his field in both practical knowledge and theoretical knowledge. As SUB aims is to build future magnate with the practical knowledge of economic field of our country, Internship course and its report is a significant aspect in the direction of accomplishing the goal. It is a systematic process for gathering, recording and analyzing of data about the topic that a student goes to learn on the program. The aim of this internship report is to connect practical knowledge with theoretical aspects. Being a student of BBA with major in Marketing has been completed internship program from Shahjalal Islami Bank Limited, Satmosjid Road Branch, . During the internship period, it has been tried to use the opportunity to be enriched with knowledge on banking system. My findings were mostly related to the Foreign Exchange. Besides this, there are many other findings, which are reflected through this internship report.

1.2 Background of the Study

ShahjalalIslami Bank Limited is a private commercial bank, which is 6th Islamic Shariah based bank in Bangladesh. The Bank started its operation on 10th May 2001; during this period it could improve its image in the society as an Islamic Bank. Now it has 26 branches in Bangladesh. All branches are situated in the highly demanded areas. As a new bank, Shahjalal Islami Bank Ltd. has been competing with other private banks where all the banks are adopting different incentive programs to attract the customers. Accordingly, Shahjalal Islami Bank Ltd. is offering different type of deposit scheme bearing highest rate of return. Mudarabah Deposit Scheme, Monthly income scheme and Millionaire scheme are the most popular offers that are completely new innovation in the banking sector and widely accepted by the clients. With crumble down of the world economy caused by nine eleven attack. It is observed that the competition becomes intensive in the globalization process. Our country has also participated in the race for its existence. Therefore, it becomes obvious for us to increase the field industrialization. Shahjalal Islami Bank Ltd. is playing a vital role in developing industry of the country and putting the national economy competitive with world economy. Developing country like Bangladesh urges a huge amount of investment both in the private and public sectors. Shahjalal Islami Bank Ltd. has been providing a lot of assistances regarding this investment process through its investment and Foreign Trade Department. 1.3 Objectives of the study

The objective of the study is to gather practical knowledge regarding over all Islamic Banking system and its operations. However my targeted area is known about the details operation of Foreign Exchange on SJIBL. So I tried my best to gather practical and over all idea about Foreign Exchange on SJIBL.

The Main Objective:

The major purpose is to achieve a well understanding of over all Foreign Exchange operations of Shahjalal Islami Bank Ltd.

The Specific Objectives:

. To gather knowledge know about the Export Operations and evaluate the performance. . To gather knowledge know about the Import Operations and evaluate the performance . To gather knowledge know about the Remittance Operations and evaluate the performance . To explore the problems of Foreign Exchange operation. . To recommend solutions of the problems faced by SJIBL.

1.4 Scope of the Study

This report has been prepared through extensive discussion with bank employees, clients and officers and on the information gathered from the annual report and prospects of SJIBL. I have got the great opportunity to have an in depth knowledge of IBTA system of SJIBL.As my subject is Marketing, I have tried at most of mine to learn from my esteemed branch. All internal branch transactions are listed every working day through software bank Ultimas. In this software client’s general information is located. From this, clients can know his balance. 1.5 Methodologies

A method involves a process or technique in which various stages or steps of collection data/information are explained and the analytical techniques are defined. A dictionaries of social science observes, “Methodology is the systematic and logical study of the principles guiding scientific investigation” The information that I used in this study is collected from the following sources:

 Primary Sources 1.Information discuss and observe 2. Daily dairy 3. Practical deskwork.

 Secondary sources 1.Various publication of SJIBL 2. Annual statements of the bank. 3. SJIBL website. 4. Different books about banking.

All this Primary and Secondary data were collected, organized, analyzed and interpreted to draw some findings.

1.6 Limitation of the study

I have tried my best to fulfill my report properly but there is some constraint during my internship period which otherwise would enabled me in making my study more appropriate and logical. The limitations were from side, the bank and as well myself.

. Foreign Exchange is too big to cover: Foreign Exchange is a too big to cover wholly in this limited scope. It required huge time and huge space to cover. So, I have covered only some important topics of credit management. . Engaged in work: Every man of the branch was so busy in their work, so they were not able to provide sufficient care to make the internee’s clear about different topics.

. Time constraint: I had to prepare this report within a period less than three month which was not enough to prepare such a report. Because collection and arrangement of information is a time consuming job. Then again I had to summarize those. So I had to work in haste.

. Confidential matter: It is not possible to get all sorts of information due to official confidentiality.

Lack of practical knowledge: For the lack of practical knowledge, some short coming may be available in the report. Because in some cases I could not practically involved because of bank’s limitation and riskiness.

2.1 Origin of the Word Bank

The word “BANK” was borrowed in Middle English from Middle French Banque, from Old Italian banca, from Old High German Banc, Bank Bench, and Counter. Benches were used as desks to exchange counters during the Renaissance by Florentine bankers, who used to make their transactions atop desks covered by green tablecloths.

One of the oldest items found showing money changing activity is silver Greek Drachma Coin from ancient Hellenic Colony Trapezes on the Black Sea, modern Trabzon, and c.350-325 BC, presented in the British Museum in . The coin shows a bankers table laden with coins pun on the name of the city. In fact, even today in Modern Greek the word Trapeze means both a table and a bank.

2.2 Definition of Bank

A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. A bank connects customers that have deficits to customers with capital surpluses.

Due to their critical status with in the financial system and the economy generally, banks are highly regulated in most countries. Most banks operate under a system known as fractional reserve banking where they hold only a small reserve of the funds deposited and lend out the rest for profit. They are generally subject to minimum capital requirements which are based on an international set of capital standards, known as the as the Basel Accords.

2.3 History of Bank

In the recent era, the story of "the elite" commences with the development of the modern banking system in Middle Ages Europe. At that time, disposable wealth was usually held in the form of gold or silver bullion. For safety, such assets were kept in the safe of the local goldsmith, he usually being the only individual who had a vault on his premises. The goldsmith would issue a receipt for the deposit and, to undertake financial transactions, the buyer would withdraw his gold and give it to the seller, who would then deposit it again, frequently with the same goldsmith. As this was a time-consuming process, it became common practice for people to simply exchange smiths' receipts when conducting financial transactions.

As time passed, the goldsmiths began to issue receipts for specific values of gold, making buying and selling easier still. The smiths' receipts thus became the first banknotes. The goldsmiths, now fledgling bankers, noticed that at any one time only a small proportion of the gold held with them was being withdrawn. So they hit upon the idea of issuing more of the receipt notes themselves, notes that did not refer to any actual deposited wealth. By giving these receipts to people seeking capital, in the form of loans, the goldsmiths could use the money deposited with them by others to make money for themselves. It was found that, for every unit of gold held by the goldsmith, ten times the sum could be safely issued as notes without anyone usually becoming any the wiser. If a goldsmith held, say, 100 pounds of other people's gold in his vaults, he could issue banknotes to the value of 1000 pounds.

As long as no more than 10 percent of the holders of those notes wanted their gold at any one time, no one would realize the fraud being perpetrated. This practice, known as "fractional reserve lending," continues to this day and is actually the backbone of the modern banking industry. Banks typically loan ten times their actual financial holdings, meaning 90% of the money they lend does not now, never has, and never will exist.

Loans issued by the goldsmiths had to be paid back to them with interest, meaning non-existent money slowly became converted to tangible assets in the form of goods and labor. Should the loan be defaulted upon, the banker had the right to seize the defaulter's property. As time passed, therefore, the goldsmiths became wealthier and wealthier. They had devised a scheme to create money out of thin air and then convert this money into real goods, labor, or property. A loan of money at 12% interest recouped not merely 12% for the banker, but 112%, as it does to this day.

As the industrial era began, so the potential for furthering this scheme increased exponentially. The goldsmiths were now fully-fledged bankers, and their ability to create money out of thin air and then convert it into tangible assets enabled them to begin to control whole industries to the point where the worlds of banking and industry became, to all intents and purposes, seamless entities. Extended family banking structures, such as the Rothschild, acquired so much power in this manner that the various monarchies and fledgling governments of the time soon began to seem quite feeble by comparison.

To increase their power and influence still further, these elite banking families would subtly buy influence within governments or monarchies and utilize this influence to strategically stir up unrest between nations. When the inevitable disputes broke out, they would then lend vast sums of money, usually to both sides, so that war could be waged. Any armaments purchased would be those manufactured by the industrial wing of the banking-industrial cartel, and by regulating the loan of money and the timing of the delivery of weapons, the outcome of any conflict could effectively be controlled. If deemed necessary, monarchies and governments could further be destabilized by generating poverty through regulating the money supply, and by using agent- provocateur tactics to fuel any latent desire for revolution. With such power it was easy to control the fledgling governments of Europe and ensure that only those politicians who would do the will of the banking families came to power.

As the twentieth century dawned, the banking families hit upon a new means to consolidate and increase their gains. They discovered that by periodically restricting the money supply crashes within the emergent stock exchanges of the world could easily be engineered. The most notable example of this was the famous Wall Street Crash of 1929. What the history books usually fail to record is that, in a crash, wealth is not actually destroyed, but merely transferred. The "Crash of '29" allowed the most powerful of the banking and industrial families to absorb the weaker elements, generating even greater levels of centralized control.

As the technological revolution progressed, so the buying up of TV stations and newspapers allowed the creation and control of the mass media. This served to ensure that only a portrayal of events that suited the interests of the elite banking families would get to public attention - invariably one that all but denied their very existence.

2.4 Types of Bank

Banks activities can be divided into as follows types such as: . Retail Banking- Dealing directly with individuals and small business. . Business Banking- providing services to mid-market business corporate. . Private Banking- Providing wealth management services to high net worth individuals and families. . Investment Banking- Relating to activities on the financial markets. Most banks are profit-making, private enterprises. However, some are owned by government, or are non- profit organizations.

Types of Retail Banks

. Commercial Bank: The term used for a normal bank to distinguish it from an investment bank. After the Great Depression, the U.S. congress required that banks only engage in banking activities, whereas investment banks were limited capital market activities. Since the two no longer have to be under separate ownership, some use the term commercial bank to refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large business.

. Community Banks: Locally operated financial institutions that empower employees to make local decisions to serve their customers and the partners. . Community Development Banks: Regulated banks that provide and credit to under-served markets or populations. . Credit Unions: Not for profit co-operatives owned by the deposits and often offering rates more favourable than for profit banks. Typically, membership is restricted to employees of a particular company, residents of a defined neighbourhood, members of a certain labour union or religious organizations and their immediate families. . Postal Saving Banks: Savings banks associated with national postal systems. . Private Banks: Banks that manage the asset of high net worth individuals. Historically a minimum of USD 1 million was required to open an account; however, over the last years many private banks have lowered their entry hurdles to USD 2, 50,000 for investors. . Offshore Banks: Banks located in jurisdictions with low taxation and regulation. Many offshore banks are essential private banks. . Savings Bank: In Europe, savings banks took their roots in their 19th or sometimes even in the 18th century. The original objective was to provide easily accessible savings products to all strata of the population. In some countries, savings banks were created on public initiative; in others, socially committed individuals created foundations to put in place the necessary infrastructure. Now-a- days European savings banks have kept their focus on retail banking, payments, product, credits and insurances for individuals or small and medium-sized enterprises. Apart from the retail focus they also differ from commercial banks by their broadly decentralized, distribution network, providing local and regional outreach and by their socially responsible approach to business and society.

. Building Societies and Lands Banks: Institutions that conduct retail banking. . Ethical Banks: Banks that prioritize the transparency of all operations and make only what they consider to be socially responsible investments. . A direct or internet only bank is a banking operation without any physical bank branches, conceived and implemented wholly with networked computers.

2.5 Banking Scenario in Bangladesh

In The March 1971 Bangladesh was a part of Pakistan known as . A nine month liberation war results in the creation of Bangladesh on 16th December 1971.At the end of the liberation war, the banking sector of Bangladesh as in totally disarray.

With exception of two local banks incorporated in the East Pakistan, all the bigger local banks became in operational. Liberation war left these banks divided and without any corporate office to guide their Head office as located outside Bangladesh territory.

The overseas banking relationships with these banks were also shattered under such situation. Two local banks and a few branches of the then Pakistani banks were functioning in the country. Starting with such a humble and chaotic condition, the banking sector of Bangladesh has grown to a great extent.

Banking is the backbone of national economy. All sorts of economic and financial activities revolve around the bank. As the industry produces goods & commodities, bank creates & controls money-market and promotes formation of capital. Banking is a powerful medium to bring socio-economic changes in a developing country like Bangladesh. Three important sectors like Agriculture, Commerce and Industry provide the bulk of the country’s wealth. So the nourishment of these sectors is only possible through satisfactory banking facility. The banking service facilitates the integration of these three. For rapid economic growth, a fully-developed banking system can provide the necessary boost. Banks provide both short and long term credits. The customers come from all walks of life, from a small business to a multi-national corporation having its business activities all around the world. The banks have to satisfy the requirements of different customers belonging to various social groups. The banking business has, therefore, become complex and requires specialized skills. It functions as catalytic agent for bringing about economic, industrial growth and prosperity of the country. As a result different types of banks have come into existence to suit specific requirements. Regardless of the number of banks and nature of their functions & activities, central bank regulates the activities of all other banks. In Bangladesh, the role of the central bank is performed by .

The private banks had concentrated their activities only in a few areas. The new banks try to share the most potential market, forcing others to face tougher competition. This also restricts 2others to expand fast to cater for the banking needs of the people in other areas. The International Monetary Fund (IMF) and The World Bank earlier asked the government to reconsider its decision to permit new banks without restoring discipline in the sector, crippled by huge amount of bad debts.

2.6 Banking Structure in Bangladesh

Banking system of Bangladesh comprises of different types of bank and financial institutions. The name of our central bank is “Bangladesh Bank” it is the director and regulator of banking system of Bangladesh. Banking structure in Bangladesh is briefly below. Bangladesh Bank is the central bank of Bangladesh .It is director of money market in Bangladesh. It regulates the activities of other banks of Bangladesh through credit control, exchange control etc. Commercial bank both the public and private sectors of commercial bank are active in Bangladesh. There are 4 nationalized commercial banks- Sonali Bank, , , . In 1983 priority gives on private sector of banking business. As a result two nationalize bank was handed over private sector, which are , Uttara Bank and now Rupali Bank is supposed to hand over in the private sector. Now in our country a large number of private banks are doing banking business.

2.7 Development of

Bank system was practiced in the Indian subcontinent from the ancient period in Indian subcontinent merchants, goldsmith moneylenders were the primary banker’s .During the Moghal period banking and credit business was enchanted rapidly. Then the agency house of jegth Seth was similar to the merchant house of LoBBArdy Street. In 1700 AD “Hindustan Bank” was established as the first joint stock bank. In 1784 “Bengal Bank” and in 1786 General bank of India was lunched. The both the bank absolved respectively in 1793 ad 1832. During the early period of Nineteenth century in 1806 “Bank of Bengal” in 1840 “Bank of BoBBAy” and in 1843 “Bank of Madras” was established. These banks were called Presidency Bank. Then in 1920 these three banks merged to “Imperial Bank of India”. In 1947 after the separation bank business in our country faced a severe disaster as non Muslim Bankers left to India. Then “Reserve Bank of India” acted as the “Central Bank of Pakistan” in 1948 to rebuild the bank business “State Bank of Pakistan” was established as bank of Pakistan. In 1971 Bangladesh became independent. After liberation “Bangladesh Bank” was automated with the assets and liabilities of former “State Bank of Pakistan”. It is the central bank of Bangladesh. During Pakistan period in our country these were 1090 branches of 12 commercial banks. Three foreign banks were also active with 14 branches offices before liberation 80% of banking activities of our country was collected by Pakistan, Consequently Bangladesh. Traders and industrialists did not get not able help from the Commercial Banks. After liberation reformed the destroyed economy on 26th March 1972 the banking sector of Bangladesh was nationalized. After nationalization government of Bangladesh changed the entire bank to six banks which are Sonali Bank. Janata Bank, Rupali Bank, Agrani Bank, Pubali Bank, Uttara Bank. Their role in development of trade and commerce of Bangladesh as well as in the development of economy. 2.8 Hierarchy Analysis

At present there are 51 scheduled banks operating all over the country. Out of these, 9 are state- owned (including five specialized banks), 29 are private commercial banks and the rest 13 foreign commercial banks. Private commercial banks are divided into three groups according to their commencement of business. They are familiar in the name of 1st generation, 2nd generation and 3rd generation banks.

1st Generation Banks (Established 1982-1988): National Bank Ltd, Ltd, Commercial Bank Ltd, AB Bank Ltd, IFIC Bank Ltd, Islami Bank Bangladesh Ltd and AL-Baraka Bank Ltd. 2nd Generation Banks (Established 1992-1996): Eastern Bank Ltd, NCC Bank Ltd, Southeast Bank Ltd, Ltd, Al Arafah Islami Bank Ltd, Social Investment Bank Ltd and Dutch-Bangla Bank Ltd. 3rd Generation Banks (Establishrd 1999 to presents): Mercantile Bank Ltd, Standard Bank Ltd, One Bank Ltd, Ltd, Premier Bank Ltd, First Security Bank Ltd, Bank Asia Ltd, The Trust Bank Ltd, Ltd, BRAC Bank Ltd, Shahjalal Islami Bank Ltd.Farmer’s Bank Ltd, Modhumothi Bank Ltd, NRB Bank Ltd.

Project Part:

1.5.4. Research design process:

Secondary data analysis

Qualitative research

Method of collecting primary data Scaling techniques

Questionnaire design

Sample design

Data collection (Survey)

Data Input

Data Analysis.

Major Findings

1.6 Data Collection Process

The data for the report were collection from

1.6.1 Primary Data Sources:

 Questionnaire survey on 22 Employee of Sonali Bank Limited at Zigatola branch.  Notes taken from day to day working.  Thorough consulting with respective officers of the branch.  By observing various registers of the branch.  Practical work exposures on different desks of the branch.  Collection of relevant information from various departments. 1.6.2. Secondary Data Sources:

. Annual report of the Sonali BankLimited. . Website of the Sonali Bank Limited. . Different publications of the Sonali Bank Limited. (2009,2010,2011) . Theoretical books relating banking sector.

1.7. Data Analysis Method To prepare this report data were analyzed by using SPSS (Statistical Package for Social Sciences) which are presented elaborately with number of charts in the analysis part. In analyzing data here used simple statistical method such as calculating the Mean value, Standard Deviation of the data. The characteristics of the data are represented by these values.

1.8. Data Collection Techniques

The primary data was collected through the questionnaire survey on 22 Employee Sonali Bank Limited at Zigatola branch. The secondary data was collected through the websites, newspapers and magazines.

1.9. Target Population

Target population is all Employee N=22 of General Banking Department of SBL at Zigatola branch.

1.10. Sampling Method

The sample size was conducted 22 Employee of Sonali Bank Limited at Zigatila Branch. 1.11. Sample Size

The sample size of my research was 22 Employee.

1.12. Scaling Techniques

Liker scale has been used to get the responses from the Employee. I would like to know whether respondents’ are Strongly Disagree (1), Disagree (2), Neutral (3), Agree (4), and Strongly Agree (5) with each statement. I have asked close-ended, short length and short time question to the respondents.

1.13. Development of Hypothesis:

H1: Employee Performance about the general banking activities depends on the tangibility of Sonali Bank Limited at Zigatola branch

H2: Employee Performance about the general banking activities depends on the reliability of Sonali Bank Limited at Zigatola branch

H3: Employee Performance about the general banking activities depends on the responsiveness of Sonali Bank Limited at Zigatola branch

H4: Employee Performance about the general banking activities depends on the assurance of Sonali Bank Limited at Zigatola branch.

H5: Employee Performance about the general banking activities depends on the empathy of Sonali Bank Limited at Zihatola branch. H6: Employee Performance about the general banking activities depends on the attitude of Sonali Bank Limited at Zigatola branch. H7: Employee Performance about the general banking activities depends on the product offering of Sonali Bank Limited at Zigatola branch. Hypothesis Constructs Operational

H1: Employee Performance about 1. SBL at Jigatola branch has the general banking depends on the modern equipments. 2. SBL at Jigatola branch is tangibility of Sonali Bank Limited well-decorated. at Zigatola branch. 3. Bank’s employees have smart appearance. 4. SBL at Jigatola branch AC facilities & light facilities are very good. Tangibility 5. Adequate place for customers is available at SBL Jigatola branch. H2: Employee Performance about 6. Employee interest in the general banking depends on the solving problem. 7. Employee gives prompt reliability of Sonali Bank Limited services to customers. at Zigatola branch. 8. Employee maintains the accuracy of transaction Reliability records. 9. Customer privacy is kept properly by SBL at Jigatola branch. H3: Employee Performance about 10. Bank tells customers the general banking depends on the exactly when services will responsiveness of Sonali Bank be provided. Limited at Zigatola branch. 11. SBL provides ATM services and these are located in

Responsiveness convenient places. 12. Employees’ have the willingness to help the customers. 13. Employees are highly knowledgeable and skilled. 14. Employees are very friendly and helpful. 15. Bank provides the services in due time. H4: Employee Performance about 16. SBL account opening the general banking depends on the procedure is easy. 17. The service charges and assurance of Sonali Bank Limited fees are affordable. at Zigatolabranch. 18. Rules and regulations for service were strictly maintained. Assurance

H5: Employee Performance about 19. Bank has convenient the general banking depends on the operation hours. empathy of Sonali Bank Limited at 20. SBL at Jigatola branch also Zigatola branch. provides evening banking services. 21. Bank responses the customer individually. Empathy 22. Bank understands the specific needs of the customers.

H6: Employee Performance about 23. Employees’ behavior is very the general banking depends on the good attitude of Sonali Bank Limited at 24. Zigatola Branch’s Zigatola branch. employees are highly responsive. 25. SBL at Zigatola branch staffs are helpful. Attitude H7: Employee Performance about 26. Branch offers attractive the general banking activities schemes for customers. 27. The branch offers high depends on the product offering of interest rate on FDR and Sonali Bank Limited at Zigatola other schemes. branch. 28. Service charges and other fees are affordable for the clients. 29. SBL provides ATM services and that are located in

Product offering convenient places. 30. Branch provides Magnetic Ink Character Recognition (MICR) cheque books to the clients.

Survey Questionnaire

Service qualities of bank are facing high competition. So it becomes very important to know why people chose different banks. That’s why I have developed a questionnaire to collect information from the Employee about the service quality & Performance Perception of Sonali Bank Limited. This study is only for my academic purpose. I will maintain strict confidentiality about your identity. Thank you for your participation.

Please read the following statement which some people agree with and some do not. I would like to know whether you strongly agree (SA)=5, agree (A)=4, neutral (N)=3, disagree (D)=2, or strongly disagree (SD)=1 with each statement. Please circle or tick the number that represents your opinion most correctly.

Warm up Questions:

Demographic Details of Employee:

1) Age: i) 20-30 years ii) 31-40 years iii) 41-50 years IV) above 50 years

2) Gender: i) Male ii) Female

3) Level of Study: i) Hones ii) Masters iii) PSD iv) Other 4) Residential Area (present) i) Jigatola ii) Newmarket iii) Nilkhet

iv) Shankar v) Rayer Bazar vi) Hajaribag

vii) Dhanmondi viii) others

5) How many year you have in SBL? i) 3-5 ii) 6-10 iii) 11-15 iv) Other 6) How long have you been taking Employee from Zigatola Branch of Sonali Bank Limited? i) 2 yrs ii) 3 yrs iii) 4 yrs iv) 5 yrs

7) Monthly Salary Amount: i) 10,000 Tk. ii) 11,000 Tk-18,000 Tk. iii) 20,000Tk-25,000 Tk. iv) 30,000 Tk-35,000 Tk. v) Other Questionnaire:

Measurement scales SA A N D SD

01 Employees’ have the willingness to help the customers. 5 4 3 2 1

02 Employees are highly knowledgeable and skilled. 5 4 3 2 1

03 Employees are very friendly and helpful. 5 4 3 2 1

04 Employee provides the services in due time. 5 4 3 2 1

05 Employee Rules and regulations man tent in Office time 5 4 3 2 1

06 Employees’ behavior is very good 5 4 3 2 1

07 Bank gives prompt services to customers. 5 4 3 2 1

08 Bank maintains the accuracy of transaction records. 5 4 3 2 1

09 Customer privacy is kept properly by SBL at Zigatola branch. 5 4 3 2 1

10 Bank tells customers exactly when services will be provided. 5 4 3 2 1

11 SBL provides ATM services and these are located in convenient 5 4 3 2 1 places.

12 SBL at Zigatola branch has modern equipments. 5 4 3 2 1

13 SBL at Zigatola branch is well-decorated. 5 4 3 2 1

14 Employees have smart appearance. 5 4 3 2 1

15 SBL at Zigatola branch AC facilities & light facilities are very 5 4 3 2 1 good.

16 SBL Account opening procedure is easy. 5 4 3 2 1

17 The service charges and fees are affordable. 5 4 3 2 1

18 Adequate place for customers is available at SBLZigatola branch. 5 4 3 2 1 19 Bank has convenient operation hours. 5 4 3 2 1

20 SBL at Zigatola branch also provides evening banking services. 5 4 3 2 1

21 Bank responses the customer individually. 5 4 3 2 1

22 Bank understands the specific needs of the customers. 5 4 3 2 1

23 Bank shows interest in solving problem. 5 4 3 2 1

24 Zigatola Branch’s employees are highly responsive. 5 4 3 2 1

25 SBL at Zigatola branch staffs are helpful 5 4 3 2 1

26 Branch offers attractive schemes for customers. 5 4 3 2 1

27 The branch offers high interest rate on FDR and other schemes 5 4 3 2 1

28 Service charges and other fees are affordable for the clients 5 4 3 2 1

29 SBL provides ATM services and that are located in 5 4 3 2 1

convenient places

30 Branch provides Magnetic Ink Character Recognition (MICR) 5 4 3 2 1 cheque books to the clients.

1.14. Rationale of the study

Employee Performance is a critical issue for any organization. Employee Performance evaluates the organization after purchase, if the Employee Performance satisfied him or her become loyal and shares his or her satisfaction with other. Bank is service provider’s organization; here service quality increases Performance at the same time Employee Performance increases Performance loyalty. The result tries to give an overview of Employee of Sonali Bank Ltd at Zigatola branch.

1.15. Limitations of the study There were some problems while the prepared report. A wholehearted effort was applied to make the report and to bring a reliable and fruitful result. In spite of having the total effort, there exist some limitations, which acted as a barrier to the report.

The limitations are as follows:

 The report has been conducted within a limited time frame.  Insufficiency of related data.  Available recent data. (Annul report 2011).  Lack of Records.  Lack of adequate information of banking institution for preparing this report. So this report is based on publicly available information.  Lack of experience has also acted as constrains for the exploration of the topics.  Extensive analysis of all the finance and Banking concept is not possible due to enlarge and diversification of the topic.

Overview of Sonali Bank Limited (SBL):

Sonali Bank, the largest commercial bank in the country, was established under Bangladesh Banks (Nationalization) Order 1972 (Presidency Order No. 26 of 1972). By taking over branches of former National Bank of Pakistan, Bank of Bahawalpur Limited and Premier Bank Ltd. were two private banks performing class banking over the century in that period and National Bank of Pakistan was government supported bank, which was established to finance the Jute Sector in East Pakistan in the early period of Pakistan. After the birth of Bangladesh on 16th December 1971, newly formed Sonali Bank for mass banking got special facilities from the government to work on behalf of Bangladesh Bank in those areas where Bangladesh Bank is not available. With the increase of responsibility and by virtue of performance within a few years, it becomes the largest commercial Bank of the country with 1200 branches up to now. Vision : Socially committed leading banking institution with global presence. Mission : Dedicated to extend a whole range of quality products that support divergent needs of people aiming at enriching their lives, creating value for the stakeholders and contributing towards socio-economic development of the country. Our Slogan: Your trusted partner in innovating banking Our Core Business:

 Corporate  Trade Finance  Investment Banking  Loan Syndication  Government Treasury Function  Project Finance  Foreign Exchange Dealing  Money Market Operation  SME Finance  International Trade  Rural and Micro credit  Remittance  NGO-Linkage Loan  Capital Market Operation  Lease Finance  Consumer Credit  Special Small Loan  Consumer Credit :: Other Business/Services::

::Islamic Banking Services:: :Deposit Products:  Al-Wadeeah Current Account(AWCA)  Mudaraba Term Deposit

 Mudaraba Savings Account(MSA) Account(MTDA)

 Mudaraba Special Notice Deposit  Mudaraba Hajj Saving Account(MSNDA) Account(MHSA)

:Investment Products:  Bai-Murabaha  Bai-Istisna

 Bai-Muajjal  Hair Purchase Under

 Bai-Salam ShirkatulMelk(HPSM)

Corporate Profile of SBL:

Name of the Company : Sonali Bank Limited Chairman : QuaziBaharul Islam CEO and Managing Director : Pradip Kumar Dutta Company Secretary : ZaheedHossain Legal Status : Public Limited Company Emerged as Nationalized Commercial Bank in 1972, following the Genesis : Bangladesh Bank (Nationalization) Order No. 1972(PO No.26 of 1972) Date of Incorporation : 03 June, 2007 Date of Vendor's Agreement : 15 November, 2007 Registered Office : 35-42, 44 Motijheel Commercial Area, Dhaka, Bangladesh Authorized Capital : Taka 2000.00 core Paid-up Capital : Taka 1125.00 core Number of Employee : 21,839 Number of Branches : 1200 Phone-PABX : 9550426-31, 33, 34, 9552924 FAX : 88-02-9561410, 9552007 SWIFT : BSONBDDH Website : www.sonalibank.com.bd E-mail : [email protected]

Objectives of SBL:

SBL has some specific objectives. These objectives are as follows:

 To earn and maintain CAMEL Rating 'Strong'  To establish relationship banking and improve service quality through development of Strategic Marketing Plans.  To remain one of the best banks in Bangladesh in terms of profitability and assets quality.  To introduce fully automated systems through integration of information technology.  To ensure an adequate rate of return on investment.  To keep risk position at an acceptable range (including any off balance sheet risk).  To maintain adequate liquidity to meet maturing obligations and commitments.  To maintain a healthy growth of business with desired image.  To maintain adequate control systems and transparency in procedures.  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.

Management: The management of the bank is vested on a Board of Directors, subject to overall supervision and directions on policy matters by the board, which is constituted in terms of Bangladesh Bank (Nationalization) Order 1972. Board of Directors, constituted by seven members, has authority to organize, operate and manage its affairs on commercial consideration within the Board policy of government. There are directors appointed by the government. Others members of the Board including MD are also government appointed out of that at least three have the experience in the field of Finance, Banking, Trade, Commerce, Industry and Agriculture. The managing director is the Chief Executive of Bank. He executes all the activities under the direction of Board. All line and staff personnel of Bank’s are own recruitment except member of Board of Directors.

Organization:

Sonali Bank is the largest nationalized Commercial Bank of the country. It has extended 1200 branches throughout the country and abroad to serve the nation. There are two, Sonali Exchange Company Incorporations (SECI) in USA and others are in planning stage. The Head Office of the bank is located at Motijheel Commercial Area, Dhaka that is the controlling Headquarter (Figure). It has eight GM offices in six Divisional Headquarters and twenty-six Principal Offices and thirty-two Regional Offices. Principal Office is headed by DGM and each Department is headed by AGM. Different grade officers depending on the size and nature of branch head the branches.

Principal Office Headquarter has jurisdiction over the entire area of a District i.e. the Principal Office is the local point of the Bank’s administrative zone of the District. The Regional Office is situated in the Thana level within the District, is under control and supervision of the Principal Office of the District. Regional Offices are responsible for their activities to the Principal Office.

Regional heads exercise control and supervision overall, the branches within their jurisdiction and keep the Head of Principal Office informed the progress of their respective areas from time to time. Head Office

G.M. Office

Principal Office

Regional Office

Branch

[Figure: Functional Hierarchy]

Organogram: [Figure: Functional Hierarchy] [Figure: Functional Hierarchy] Demographics Variables of the Respondents: The number of total respondents is 40 who are the customers of General Banking department of Sonali Bank Ltd at Zigatola branch. The demographic variables of the respondents are presented by 'Pie chart'. To analyze the data I have used the SPSS software.

Age

Frequency Percent Valid Percent Cumulative Percent Valid 20-30years 14 35.0 35.0 35.0 31-40years 7 17.5 17.5 52.5 41-50years 10 25.0 25.0 77.5 50+ years 9 22.5 22.5 100.0 Total 40 100.0 100.0

Graph 01:

The above analysis shows that 35 % of the clients of SBL Zigatola branch are of 20-30 years old, 17.50 % of the clients are of 31-40 years of age. The percentage of the clients of 41-50 years is 25 %. Only 22.50% of our target respondents are above 45 years of age. Table 02: Gender

Frequency Percent Valid Percent Cumulative Percent Valid Male 20 50.0 50.0 50.0 Female 20 50.0 50.0 100.0 Total 40 100.0 100.0

Graph 02:

The above analysis shows thatamong 40 respondents 50 % are male clients and the rest 50 % are female.

Table 03: Occupation Cumulative Frequency Percent Valid Percent Percent Valid student 10 25.0 25.0 25.0 service holders 8 20.0 20.0 45.0 Business man 7 17.5 17.5 62.5 Housewife 9 22.5 22.5 85.0 5 6 15.0 15.0 100.0 Total 40 100.0 100.0

Graph 03:

The above analysis shows that 25 % of the clients of SBL Zigatola branch are student, 20 % of the clients are service holders, and 17.50 % of the clients are business man. The percentage of the clients of house wife is 22.50 %. Only 15 % of our target respondents are others.

Table 04: Residential Area (present)

Frequency Percent Valid Percent Cumulative Percent Valid Zigatola 20 50.0 50.0 50.0 Nilkhet 1 2.5 2.5 52.5 Shankar 3 7.5 7.5 60.0 Rayer Bazar 3 7.5 7.5 67.5 Hajaribag 4 10.0 10.0 77.5 Dhanmondi 8 20.0 20.0 97.5 Others 1 2.5 2.5 100.0 Total 40 100.0 100.0

Graph 05:

The above figure shows that about 50% of the respondents said that their residential area isZigatola. The reason behind the increase in this number is that, bank near their resident give the advantage of doing financial transaction more easily and safely rather than going at a distant location. This also makes them time and cost effective. The second highest number of clients comes fromDhanmondipercentage is 10 % and the lowest number of clients comes from others area percentage is 2.5 %. Table 06: How many accounts do you have in SBL at Zigatola Branch

Frequency Percent Valid Percent Cumulative Percent Valid one 20 50.0 50.0 50.0 Two 14 35.0 35.0 85.0 Three 4 10.0 10.0 95.0 Above Four 2 5.0 5.0 100.0 Total 40 100.0 100.0

Graph 05:

The above analysis shows that 50 % of the clients of SBL Zigatola branch have only one account, 35 % of the clients have two accounts, and 10 % of the clients have three accounts, others has above 5 %.

Table 06: How long have you been taking services from Zigatola Branch of Sonali Bank Limited?

Frequency Percent Valid Percent Cumulative Percent Valid 2 years 14 35.0 35.0 35.0 3 years 8 20.0 20.0 55.0 4 years 6 15.0 15.0 70.0 5 years 12 30.0 30.0 100.0 Total 40 100.0 100.0

Graph 06:

The above analysis shows that most of the respondents are taking services from the bank for five years. They are 30% of the total respondents. 15 %, 20 % and 35 %of the respondents are taking services for four year, three years and two years respectively.

Table 07: Monthly Transactional Amount Cumulative Frequency Percent Valid Percent Percent Valid 10000 TK 6 15.0 15.0 15.0 11000-30000 TK 18 45.0 45.0 60.0 31000-50000 TK 8 20.0 20.0 80.0 51000-70000 TK 2 5.0 5.0 85.0 71000 -90000TK 1 2.5 2.5 87.5 91000+ TK 5 12.5 12.5 100.0 Total 40 100.0 100.0

Graph 07:

The above analysis shows that monthly transactional amount 91000+ tk. and percentage of such respondents’ is 12.5%, 2.5% respondents and 5 % said their transactional amount is between 71000-90000 tk. and 51000-70000 tk. The highest monthly transactional amount is between11000- 30000tk. and percentage of such respondents’ is 45 %.

Descriptive statistics: Table shows that descriptive statistics of the research. Descriptive Statistics N Mean Std. Deviation SBL at Zigatola branch has modern equipments 22 2.3500 .89299 SBL at Zigatola branch is well-decorated. 22 2.4000 .77790

Bank’s employees have smart appearance. 22 3.1750 1.00989

SBL at Zigatola branch AC facilities & light facilities are very good. 22 2.5250 1.32021

Adequate place for customers is available at SBL Zigatola branch. 22 2.8000 .88289

Bank shows interest in solving problem. 22 3.5500 .84580

Bank gives prompt services to customers. 22 3.5250 .84694

Bank maintains the accuracy of transaction records. 22 3.9000 .90014

Customer privacy is kept properly by SBL at Zigatola branch 22 3.7000 1.11401

Bank tells customers exactly when services will be provided. 22 2.9000 1.19400

SBL provides ATM services and these are located in convenient places. 22 1.0250 .15811

Employees’ have the willingness to help the customers. 22 3.5500 .87560

Employees are highly knowledgeable and skilled. 22 3.8250 .90263

Employees are very friendly and helpful. 22 3.5000 1.19829

Bank provides the services in due time. 22 3.9250 .72986

SBL Account opening procedure is easy. 22 3.6750 .97106

The service charges and fees are affordable. 22 3.5750 .93060

Rules and regulations for service were strictly maintained. 22 3.4250 1.15220

Bank has convenient operation hours. 22 3.3250 1.18511 SB 22

1.3500 .89299

L at Zigatola branch also provides evening banking services. Banresponses the customer individually. 22 2.3250 1.22762

Bank understands the specific needs of the customers. 22 2.7000 1.06699 If the mean values are above 3.5 and the standard deviation values are less than 1 those variables are holding positive perception by the customers. On the other hand if the mean values are below 3.5 and the standard deviation values are less than 1 those variables are holding negative perception by the customers.

The variables are as follows:

 SBL at Zigatola branch has modern equipment’s where mean value is 2.3500and standard deviation is .89299.  SBL at Zigatola branch is well-decorated where mean value is 2.4000and standard deviation is . 77790.  Bank’s employees have smart appearance where mean value is 3.17500and standard deviation is 1.00989.  SBL at Zigatola branch AC facilities & light facilities are very good where mean value is 2.5250and standard deviation is 1.32021.  Adequate place for customers is available at SBL Zigatola branch where mean value is 2.8000and standard deviation is .88289.  Bank shows interest in solving problem where mean value is 3.5500and standard deviation is . 84580.  Bank gives prompt services to customers where mean value is 3.5250and standard deviation is . 84694.  Bank maintains the accuracy of transaction records where mean value is 3.9000and standard deviation is .90014.  Customer privacy is kept properly by SBL at Zigatola branch where mean value is 3.7000and standard deviation is 1.11401.  Bank tells customers exactly when services will be provided where mean value is 2.9000and standard deviation is 1.19400.  SBL provides ATM services and these are located in convenient places where mean value is 1.0250and standard deviation is .15811.  SBL at Zigatola branch has modern equipment’s where mean value is 2.3500and standard deviation is .89299.  Employees’ have the willingness to help the customers where mean value is 3.5500and standard deviation is .87560.  Employees are highly knowledgeable and skilled where mean value is 3.8250and standard deviation is .90263.  Employees are very friendly and helpful where mean value is 3.5000 and standard deviation is 1.19829.  Bank provides the services in due time where mean value is 3.9250and standard deviation is . 72986.  SBL Account opening procedure is easy where mean value is 3.6750and standard deviation is . 97106.  The service charges and fees are affordable where mean value is 3.5750and standard deviation is .93060.  Rules and regulations for service were strictly maintained where mean value is 3.4250and standard deviation is 1.15220.  Bank has convenient operation hours where mean value is 3.3250and standard deviation is 1.18511.  SBL at Zigatola branch also provides evening banking services where mean value is 1.3500and standard deviation is .89299.  Bank responses the customer individually where mean value is 2.3250and standard deviation is 1.22762.  Bank understands the specific needs of the customers where mean value is 2.7000and standard deviation is 1.06699.  Employees’ behavior is very good where mean value is 3.5000 and standard deviation is 1.06217.  Zigatola Branch’s employees are highly responsive where mean value is 3.4000and standard deviation is .90014.  SBL at Zigatola branch staffs are helpful where mean value is 2.9500and standard deviation is 1.10824.  Branch offers attractive schemes for customers where mean value is 3.6750and standard deviation is .88831.  SBL at Zigatola branch has modern equipment’s where mean value is 2.3500and standard deviation is .89299.  The branch offers high interest rate on FDR and other schemes where mean value is 3.1750and standard deviation is 1.10680.  Service charges and other fees are affordable for the clients where mean value is 3.2000and standard deviation is 1.09075.  Branch provides Magnetic Ink Character Recognition (MICR) cheque books to the clients where mean value is 4.2500and standard deviation is .80861. SWOT Analysis:

Each & every organization should be aware of their strengths, weaknesses, opportunities and threats. This analysis is known as SWOT analysis. SWOT analysis explains in two broad ways on viewed of organizations environment. These are: A). Internal Environment Analysis:It includes  Strength  Weakness B). External Environment Analysis: It includes  Opportunity and  Threats

SWOT Analysis –Sonali bank view: During my internship period in Sonali bank, I have found some aspects relating to the Bank's strength, opportunity, weakness and threats, which are more or less. I think affecting the Bank's performance in total which are given below:

Strengths:

 As a largest bank, it has qualified, professional and experienced manpower.  Structural set-up & business location is Strategic.  Sonali bank assets position is quite satisfactory & now there is no fund crisis.  Sonali bank has requisite strength and opportunity to sustain the challenge of the market economy.  Being a nationalized banking organization, it always get govt. support in all of its operations and new projects if is viable.  First strength is it’s located in a prime location.  Employees are aware about their service.  Wide branch network among the third generation bank.  Experienced management. Weaknesses:  In Sonali bank, arises problem of manpower because of there is no new recruitment for a long period.  Lack of motivation for the workers & low salary structure.  Rules and regulations of govt. sometimes make problem for the bank.  Customers maintain a long cue to deposit or withdraw money.  Inadequate IT infrastructure.  All of the employees are not properly trained.  Insufficient ATM services.  Lack of proper motivation, training, and job ration

Opportunities:  Expansion of new area of investment.  All out efforts for deposit mobilization.  In case of fund crisis Sonali Bank gets govt. support as it is a govt. owned concern.  Undertake need-based training program & full computerization of bank's activities.  Most of the customers have transaction with this bank two years & above.  Scope of the market penetration through diversified products and services.  All employees are masters completed.  New emerging banks with dynamic customer service care.  The ability to obtain a larger customer base.

Threats:  Facing a great competition with other commercial banks and financial institutions.  Introduction of certain harder banking rules and regulation.  Increased competition in the bank market.  Competition with international bank due to liberation of domestic market.  Economic uncertainty in global market.  Likely entry of potent new competitors.  Customers are demanding higher rate of return against their deposits. Major Findings: I have find out some points by screening the whole study, which are expressed as major findings. The conversations with the Sonali bank officials are very significant for the findings.

 There is a training institution and a human resource division of Sonali bank to run the activities of human resources.  The communication of Sonali Bank is open and free. Sonali Bank uses notice board, magazine, newsletters, the suggestion programs etc as a method of communication.  It uses pay, financial incentives, flexible working hours, work sharing, promotions, giving responsibilities, autonomy and decision as a method of motivating employees.  It provides compensation according to the government pay scale.  It has a better labor management relationship.  Sonali Bank describes the duties and responsibilities of the department and the department describes the duties and responsibilities of the sections of the department.  Sometimes pressure groups are involved in sanctioning loan.  Unstable policy of the government due to political changes over time.  High-educated personnel are in the management.  There are some fringe benefits to the employees with cash benefit.  Social benefits are high from the banks to the people in various ways such as infrastructure facilities, security etc.  Giving advice about the projects function for their future success. Conclusions:

In conclusion I would like to say the study that I have done on Employee performance Satisfaction of Sonali Bank Limited at Zigatola Branch” is a combination of sincerity, dutifulness, performance and study. It requires me to work on papers, customers and officials as well.

Sonali Bank is the largest commercial bank as well as the largest employer in both the public and private sector in Bangladesh. The bank is playing an important role in the socio-economic development through the development of industrial sector. The bank provides all the conventional banking service as well as some specialized financing activities to the economy. In fine we can say the profitability of the bank was comparatively satisfactory because the fluctuation is not highly significant. Again some new branches were opened during the study period. So as new bank its performance is quite satisfactory. Finally we can say if the bank controls its expenses and takes proper steps to overcome its little limitation, it will become a first rows bank of Bangladesh.

I also experienced some practical situation problem while doing survey. With a bulk of qualified and experienced human resource, Sonali Bank Limited can use any opportunity in the banking sector. It understands the needs of the Employee performance and thus it understands the needs of the nation. But it is very unfortunate that for many reasons Sonali Bank Limited has not been able to make the Employee performance fully satisfied. Recommendations:

This report was based on analyzing the Employee performance of Sonali Bank Ltd. at Zigatola branch. The bank should focus on these for the betterment of the bank and for increasing customer. The recommendations are as following bellow:

 Tangibles: And also other variables are correlated with each other, if one variable changes, then automatically other variable will be changed. The satisfaction and physical amenities variable are correlated. So if the bank sustains physical abilities level such as keep a good banking environment, use modern equipment, etc. keeps transactional record correctly, and clients feel safe in transaction with this branch then it will automatically improve the reliability of the bank.  Developing reliability: Reliability of the bank is the most important variable for improving the customer satisfaction. So, the bank should highly focus or develop the reliability.  Improving responsiveness: Since responsiveness and reliability variable are correlated. So, if the bank improves the responsiveness level such as provide service promptly, provide timely feedback to customers, replies on phone calls, responsive to customer needs, set appointment quickly with the right person when clients face problem then it will automatically improve the reliability of the branch.  Empathy: So, if the bank improves the Empathy level such as the convenient transaction hour is always good, Employees are trustful and reliable, the Rules and regulations were strictly maintained, and the bank is always trustworthy from all aspect, then it will automatically improve the customer’s satisfaction of the bank.

All of the observation the bank should maintain their all commitment, provide prompt service, follow the banking rules and regulation those are positive perception by customer and avoid some bed activities that negative perception by the customer than the Employee will be satisfied. Reference:

Several Booklets of Sonali bank. Several Newsletters of Sonali bank. www.sonalibank.com.bd Sonali Bank Ltd Employee Training Manuals Higher Principal Of Banking –Dr. A. R Khan Internship Report www.google.com www.mincom.gov.bd www.wikipedia.org www.bangladesh-bank.org www.reportbd.com http://images.google.com/images