Professional Documents
Culture Documents
Introduction
The recruitment and selection processes of an organization are two of its most important financial activities. The basic purpose of recruiting is to ensure a sufficient pool of applicants from which the most qualified individuals may be selected. Effective recruiting is important because sufficient number of qualified applicants is needed to ensure that selection can be successfully accomplished.
Methodology
In the preparation of this report, data has been collected from both primary and secondary sources. In-depth interviews of some of the employees of the Finance Division of SOCIAL ISLAMI BANK LTD.have been conducted to gather necessary information. Also, the Financial Analysis Statement of SIBL has been consulted in preparing this report. Moreover, text books, the internet, the annual report of SOCIAL ISLAMI BANK LTD.etc. have been used to collect information.
Scope
The scope of this study is only the recruitment and selection policy and processes of SOCIAL ISLAMI BANK LTD..
Limitation
The major limitation of this report is that some confidential information was not available for the purposes of this report.
Board of Directors
Mr. Md. Anisul Hoque Chairman
Director
Alhaj Sultan MohmoodChowdhury
Director
Alhaj Nasiruddin
Director
Director
2.2.2 Mission
To become most remarkable and admirable private commercial bank in the country. To get recognition as a dynamic, innovative and customer service oriented bank. To keep momentum of continuous & steady growth with maximum transparency and to diversify products and resources. To expedite continuous of date of information and technology with all modern facilities to copy with demand and challenges of the time.
2.2.3 Objective
Major objectives of the bank include the following: Growth Value Addition Quality Standard
Banks provide almost all payment services, and a bank account is considered indispensable by most businesses, individuals and governments. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a bank account. Banks borrow most funds from households and non-financial businesses, and lend most funds to households and non-financial businesses, but non-bank lenders provide a significant and in many cases adequate substitute for bank loans, and money market funds, cash management trusts and other non-bank financial institutions in many cases provide an adequate substitute to banks for lending savings to.
Like other commercial banks SIBL also provides all the services mentioned above. Major activities of the bank include the following: Accepting money on term deposit and lending money by way of overdraft, installment loan or otherwise. Providing documentary and standby letters of credit (trade finance), guarantees, performance bonds, securities underwriting commitments and other forms of off- balance sheet exposures Issue of banknotes (promissory notes issued by a banker and payable to bearer on demand) Issuing bank drafts and bank cheques and processing of payments by way of telegraphic/mail transfer, POS, internet banking or other means. Currency exchange and safekeeping of documents and other items in safe deposit boxes.
34.66%
14.50%
Credit Operations
For the last couple of years banks operations in connection with loans and advances has increased significantly which is contributing a lot to sustainable growth of the bank. The bank provides all sorts of advances to almost all sector of the economy within the stipulation laid down in Banking Company Act. 1991. Besides regular credit operations the bank has started brokerage business since January 2009, consequently got stock dealing license and started Stock dealing operation from March 2012.
Personal Loan
For the purchase of household appliances, computers, marriage, medical treatment and education for self or dependents etc.
For the purchase of household appliances, furnishings, for household refurbishment, marriage, medical treatment, education. Maximum BDT 500K but not less than BDT 75K per loan. Ill. Consumer Loan to be disbursed through the savings account to be opened with SOCIAL ISLAMI BANK LTD. Repayment in 12, 24, 36, 48 monthly installments. Prepayments are allowed anytime at his/her convenience.
Auto Loan
For the purchase of a passenger car (unregistered reconditioned or brand new) to be used for personal transport purposes by the obligor. The vehicle will be registered in the banks name and the obligor will be issued a authority letter by the bank to use it for his personal purpose.
Vacation Loan
For taking an overseas vacation, purchase of tickets, purchase of TCs etc. Purchase of Air ticket(s) in the name of the obligor and family and purchase of FX for hotel and other expenses as allowed by the BBFX Manual. IL Maximum amount BDT 500K but not less than BDT 75K. Repayment in 24, 36 and 48 monthly installments. Prepayments allowed anytime at his/her convenience. FX to be purchased from our bank branches. Ticket bookings are required to be done from any of our enlisted Travel Agents. Consumer Loan to be disbursed through the savings account to be opened with SOCIAL ISLAMI BANK LTD..
Lease Financing
Although there are separate financial institutions in the lease financing market, banks are entering in this business day by day. SOCIAL ISLAMI BANK LTD. offers Lease Financing for acquiring of capital machinery, equipment and other items. The rental payable under lease financing is treated as revenue expenditure and thus is deductible for tax purposes.
Taka
2008
2009
2010
2011
2012
Profit Trend
The nominal value of profit is increasing each year. From Tk.628 million in the year 2008, the figure has now grown to Tk. 1193 million in the year 2012. But the growth in last 5 years in profit is not very high. The rate as the figure indicates has settled for a stable position.
Ratios
Liquidity ratio measures the SOCIAL ISLAMI BANK LTD.s short-mn ability to pay its maturing obligations. Two most important liquidity ratios, current ratio and net loan to total assets, are discussed in this section.
Current Ratio: The current ratio is the ratio of total current asset to total current liabilities of the bank. This ratio is also helpful in evaluating working capital position because working capital is the excess of current assets over current liabilities. The figure, depicted on the next page, shows the current ratio of the bank over the past five years:
The above figure shows that the current ratio of the bank was increasing from the year 2008 till 2012. After 2012, current ratio started to decline and the year 2012 saw the lowest current ratio for the bank. So it can be said that the liquidity position of the bank is relatively weak. Net Loan to Total Assets: Another way of measuring liquidity for financial institution is to measure the net loan to total assets. It will help to measure amount the bank disburse in the form of loans and advances from the assets. The ratios of net loan to total assets are represented by the following figure.
2013 2012 2011 2010 2009 2008 2007 2006 2005 2009 2008 59% 2010 62% 2011 59% 71%
71%
2012
As the above figure suggests the Net loan to total assets ratio has increased notably in last two years. Again it can be observed that the liquidity position of the bank is relatively weak.
The figure represented above shows that the trend is not very much fluctuating. It has been stable over past five years. In 2012, the return was 22.74% compared to the previous years 20.89%. Capital Adequacy Ratio: Capital adequacy focuses on the total position of ba nks capital and protects the depositors from the potential shocks of losses that the bank might incur. Banks in Bangladesh have to maintain a minimum Capital Adequacy Ratio (CAR) of not less than 9.00 percent of risk-weighted assets. The figure,
represented on the next page, shows the capital adequacy ratio of the bank over the last five years:
2013 2012 2011 2010 2009 2008 2007 2006 2005 9% 2010 2009 2008 11% 2011 2012 11% 11% 9%
The above figure shows that SOCIAL ISLAMI BANK LTD. is not well capitalized by local standards with a total CAR of 9.43% in 2012. There was a sharp decline in the rate from the year 2011 when CAR was 11 .00%. The bank is not in a position to absorb major financial risks (like credit risk, market risk, foreign exchange risk, interest rate risk etc.). Debt Equity Ratio= Year Debt equity ratio
Long term debts Shareholders fund
2001 9.31%
2012 6.05%
Debt equity ratio is on lower trend. So there is still scope for arranging long-term loans for further expansion of the business provided profitable activities can be carried on. 3. Though Cash & Balance with other bank is increased by 27% & 47% respectively, borrowing from bank, financial institution also increased by 195%. That means banks liquidity was not sufficient to meet the obligations.
other risks such as credit risk, operational risk, etc. it is also known as Capital to Risk Weighted Assets Ratio (CRAR). Capital adequacy Ratio=
Tier 1 capital Tier 2 capital 100 Risk weighted asset
TIER 2 CAPITALS - 1. Undisclosed Reserves. 2. General Loss reserves. 3. Subordinate Term Debts.
2013 2012 2011 2010 2009 2008 2007 2006 2005 10.10% 2010 2009 2008 13.11% 2012 2011 13.42% Car Year 8.61% 12.29%
Here, we view Capital Adequacy ratio of SIBL was in a good position in 2012 comparing with 2011. That means SIBL has good capacity to meet the time liabilities and other risks.
2013 2012 2011 2010 2009 2008 2007 2006 2005 6.57% 2010 2009 2008 3.68% 2012 2011 5.13% Dividend yield ratio Year 8.51% 4.96%
Here we view a fluctuation in the dividend yield ratio. It was 6.57%, 3.68%, 5.13%, 8.51% and 4.%% lathe year of 2008,2009,2010,2011 and 2012. Payout Ratio: It is important to some investors that the payout be sufficiently high to provide a good yield on the stock of SOCIAL ISLAMI BANK LTD. Limited. The figure of the next page shows the trend of the payout ratio of the bank over the past five years:
Pay out ratio 50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2007
45.45%
28.57%
2008
2009
2010
2011
2012
2013
The above figure shows that payout ratio declined in 2010 to 22.22% from 45.45% in 2009 while in 2008 it was as low as 16.39%. A payout ratio of 22.22% means that the bank paid out 22.22% of the EPS in the form of dividend. So SOCIAL ISLAMI BANK LTD. is retaining and reinvesting 77.78% of the earnings for future growth.
Conclusion
I have to try my best to reach a firm and concrete a conclusion very confident way. I believe that my realization will be in harmony with most of the banking thinkers. Now a day banking sector is more competitive. To achieve a proper reward about performance, it is essential to satisfy its customer by providing them different valuable and dynamic services. Because a satisfied customer will talk to others about the services those he/she is very justifiable enjoying and a satisfied customers statement is more effective than a thousand of commercial advertisement. People depend on the people is the mode of human civilization. Therefore, the importance to satisfy customer is increasing day by day in the private commercial sector especially in the private banks. As all the activities those are required to provide valuable services to its customers to make them satisfy, are related with the fund management system, SIBL is so much careful about its fund management system. SIBL always gives its highest attention in monitoring and managing the bank fund, which is consists of fund, capital, reserve, deposit, loan and advance. At present SIBL is successful in effectively and efficiently managing these vital issues. In spite of that, in order to keep its success continue and reach at the pinnacle of success it, its managers, board of directors and employee must have the comprehensive and clear idea about the reserve, fund, loan, capital, deposit and liquidity regarding the smooth control of bank and continue its vital operation toward countrys economic development.