Welcome to my

presentation
Presented by:
Nadia Jahan Chowdhury Shetu
Reg no: 13202003
BBA Program

Topic:
General Banking Activities of Islami Bank
Bangladesh Limited.
 Objectives

 To analyze Porter’s Five Forces framework on banking industry.

 To analyze product portfolio of Islami Bank Bangladesh Limited by using

BCG Growth-Share Matrix.

 To understand the scenario of the bank through SWOT analysis.

 To make Ratio analysis to evaluate the performance of Islami Bank

Bangladesh Limited.

 To offer some suggestions for better performance of Islami Bank

Bangladesh Limited (IBBL).
 Limitations

 Lack of adequate time

 Insufficient access to information

 Lack of Experience
 Methodology

Primary Sources

 Observation of banking activities

 Face-to-face conversation with officers of the bank
 Practical desk work
 Conversation with the officers of different sections of Islami Bank Bangladesh Limited
 Personal experience gained by visiting different desks, and by asking customer’s opinions
 Methodology

Secondary Sources

 Daily note maintained by me (containing my activities in IBBL)

 Online sources and Website of Islami Bank Bangladesh Limited

 Class notes of IBTRA

 Annual Report of the bank

 Various books, articles, newspapers etc. related to the banking sector

 Islamic Banking in Bangladesh

Two basic principles behind Islamic banking are –

 Sharing of profit and loss

 Prohibition of the collection and payment of interest

 Islamic Bank Vs Conventional Bank

Islamic Bank Conventional Bank

Based on the principles of Islamic Based on manmade principles.

Shariah.

Profit maximization based on Islamic Profit maximization without any

Shariah. restrictions.

Investment scope is narrow. Investment scope is not narrow.

 Islami Bank Bangladesh Limited (IBBL)

Started its journey on March 13, 1983

Total number of branches: 329

Total number of employees: 11,381

The competitors: Al-Arafah Islami Bank Limited, Shahjalal Islami Bank, Social Islami
Bank etc.
 IBBL Products & Services

Deposit Investment Foreign RDS ATM Locker

Trade Service Services

Al-Wadeah Current Account Bai-(Trading) Import

(AWCA)
Bai- Murabaha Export
Mudaraba Savings Account
(MSA) Bai- Mujjal Remittance

Mudaraba Hajj Savings Bai- Salam

Account (MHSA) Bai-Istisna
Mudaraba Special Savings Share (Partnership)
(Pension) Account (MSSA)
Mudaraba
Mudaraba Mohor Savings
Account (MMSA) Musharaka

Students Mudaraba Savings Ijarah (Leasing)

Account (SMSA)
Hire Purchase Under Shirkatul
Melk
Islami Bank Bangladesh Limited Organogram
Chairman

Vice Chairman

Board of Director

Deputy Managing Director (DMD)

Executive Vice President (EVP)

Senior Vice President (SVP)

Vice President (VP)

Assistant Vice President (AVP)

Senior Principal Officer (SPO)

Principal Officer (PO)

Senior Officer (SO)

Officer

Assistant Officer (Grade-1)

Assistant Officer (Grade-2)

Assistant Officer (Grade-3)

Porters’ Five Forces Model in Banking Industry

Threat of New
Entrants
(Low)

Bargaining Rivalry Bargaining

Power of Among Power of
Customers Existing Suppliers
(Medium) Competitors (Medium)
(High)

Threat of
Substitute
Products or
Services
(Medium)
Boston Consulting Group Model (BCG )
 SWOT Analysis of IBBL

Strengths

 Shariah based Islami Banking

 Bank reputation

 Flexible work environment

 Skilled and efficient Employees

 Financial Strength
 SWOT Analysis of IBBL

Weaknesses

 Limited Workforce

 Lack of skilled system operators

 Very few branch level meeting

 A few number of foreign exchange departments

 Lack of aggressive advertising strategy

 SWOT Analysis of IBBL

Opportunities

 Branch Expansion

 High grades of customer service

 Scope of investment potential

 More concentrated banking based on Islamic Banking

 SWOT Analysis of IBBL

Threats

 Bangladesh Bank has no well-established Islamic Banking rules

 Entrance of local private and foreign banks

 Lack of customer awareness regarding Islamic banking

 Unsteady Customers Loyalty

 Political Instability
Financial Analysis of IBBL and AIBL
 Ratio analysis
Return on Investment (ROI) (%)

Bank/Year 2012 2013 2014 2015 2016 5Year Average

IBBL 12.21% 11.49% 9.86% 8.20% 8.29% 10.01 %

AIBL 12.51% 13.01% 13.70% 11.70% 10.41% 12.27%

16.00%

14.00% 13.70%
13.01%
12.51%
11.70%
12.00%
12.21% 10.41%
11.49%
10.00%
9.86%
8.00%
8.20% 8.29%
6.00%

4.00%

2.00%

0.00%
2012 2013 2014 2015 2016

IBBL AIBL
 Ratio analysis
Non-performing Investment (%)

Bank/Year 2012 2013 2014 2015 2016 5Year Average

IBBL 3.81% 3.71% 4.92% 4.25% 3.83% 4.10 %

AIBL 1.63% 2.77% 4.50% 4.66% 4.54% 3.62%

6.00%

4.92%
5.00%
4.66% 4.54%

3.81% 3.71% 4.50%

4.00% 4.25%
3.83%
3.00%
2.77%

2.00%
1.63%

1.00%

0.00%
2012 2013 2014 2015 2016

IBBL AIBL
 Ratio analysis
Investment to Deposit (%)

Bank/Year 2012 2013 2014 2015 2016 5Year Average

IBBL 85.18% 82.35% 79.88% 83.59% 86.43% 83.49%

AIBL 90.56% 88.74% 84.58% 88.59% 88.50% 88.19%

92.00%
90.56%
90.00%
88.59% 88.50%
88.74%
88.00%

86.00%
84.58% 86.43%
85.18%

84.00%
83.59%

82.35%
82.00%

80.00% 79.88%

78.00%
2012 2013 2014 2015 2016

IBBL AIBL
 Ratio analysis
Return on Asset ROA (%)

Bank/Year 2012 2013 2014 2015 2016 5Year Average

IBBL 1.27% 0.96% 0.67% 0.48% 0.59% 0.79 %

AIBL 1.30% 1.31% 1.10% 1.08% 1.23% 1.89%

1.40%
1.30% 1.31%
1.23%
1.20% 1.27%
1.10% 1.08%

1.00%
0.96%

0.80%
0.67%
0.60%
0.59%
0.40% 0.48%

0.20%

0.00%
2012 2013 2014 2015 2016

IBBL AIBL
My Roles & Responsibilities During Internship
 My Roles & Responsibilities During Internship

General Banking Activities

 Opening Account

 Providing information to the customer

 Changing customer address, phone number, photo, signature and close existing
account, transfer account as per customer requirement.
 Learning points from internship work at different
departments

 Islamic Bank does not provide any loan rather they provide investment on sharing profit &
loss mode.
 Difference between interest & profit.

 The product and services offered by the IBBL.

 Account opening system.

 The difference between Conventional banking & Islamic banking.

 The conduct of an executive.

 Findings

 Limited investment scope

 Decision making process is centralized

 Lack of skilled system operators

 Lack of marketing strategy

 Lack of motivation
 Recommendations

 Management Efficiency

 Decentralize decision making Process

 Turn company objectives into individual target

 Increase Advertisement and Promotion

 Use of Marketing Research