Investment Function Jannatul Ferdus

Internship Report On Different Investment Function of Standard Bank Limited
Submitted To:
Md. Shajul Islam Lecturer, Dept. Business Administration Stamford University Bangladesh
Submitted By:
Jannatul Ferdus ID No. MBA 201211130 Major: Accounting Department of Business Administration
Date: August 19, 2011
Stamford University Bangladesh
Investment function of SBL
Letter of Transmittal
August 19, 2011 Professor Md. Shajul Islam Lecturer Dept. Business Administration Stamford University Bangladesh
Subject: Submission of internship report on Different Investment Function of Standard Bank

Limited (SBL) Dear Sir It is my pleasure to submit the internship report on Different Investment Function of Standard Bank Limited (SBL) In particular reference to Dakkhin Khan branch which has been prepared as a partial requirement of BBA program. I have tried my level best to complete my internship program successfully. The whole experience of this internship program enabled me to get an insight into the real life situation. I believe that this report has enriched both my knowledge and experience. I shall be happy to provide further clarification regarding this report whenever necessary. Thanking you Sincerely yours Jannatul Ferdus ID# BBA 03010241 Department of Business Administration Stamford University Bangladesh
Acknowledgement
At first, I am highly grateful to almighty Allah, the creator of universe, who has provided me with all kinds of opportunities to complete the internship program and prepare a report. Individual efforts alone can never contribute in totality to a successful completion of any venture. I would have been failed in my duty if I had not stated my gratitude and appreciate to the following individuals who have made valuable contribution to this report. I would like to thanks the all official of standard bank Limited, dakkhin khan branch,Dhaka and also head office branch for their help and support in every aspect of this report. I express my gratitude to Mr. Humayun kobir (AVP & branch in-charge); Joarder elias rahman (senior executive officer & second manager ); Mr.abu nasar(executive officer, credit); Mr. sanjay deb nath (SO); Mrs.shahida sultana(SO, cash); Mrs. Marufa yeasmin (officer) ; Mrs.Nazmun nahar khan chowdhury (officer, cash) ; Md.Sarwar alam (officer, it) & Mr. jamil hasan (ao, cash) for their guidance and kind cooperation. I am very grateful to Mr. Sanjay Deb Nath (Senior officer, Dakkhin Khan branch), and other employees of Standard Bank ltd, Finally, I would like to thank my family for supporting me and giving me courage to carry on my work.
Executive Summary
This report is prepared for the Internship phase of BBA program of Stamford University Bangladesh. This Report focuses three months working experiences in Dakkhin Khan branch, Standard bank limited. This report will give a clear idea about activities and operational strategies of SBL. Especially this report focuses on the Different Investment Function of SBL . The report will provide a clear conception about Investment mechanism of Conventional Bank. This report contains four main parts. The first part of the report is introduction, objective, methodology, scope, limitation of the report. The second part of the report is about an overview of Standard Bank Limited. Standard Bank limited was established in May, 11. 1999 with a clear manifesto of demonstrating the operational meaning of participatory economy, banking and financial activities as an integral part of an Standard Bank code of life. I have also tried to mention some problems regarding SBL on investment, such as the problems of Mudaraba are: lack of govt. support, uncertain cost of capital, and the problems of Musharaka: lack of expertise persons, lack of legal frame work of Islami Banking in Bangladesh. The problem of Ijarah is: disposing the asset, when the asset is no longer being needed, uncertainty about the total life of the asset etc. To avoid the above problems, SBL can follow the following ideas: SBL can diffuse its scope of investment through focusing Shariah concept regarding investment among the bank officers, employers and the clients by strong training; workshop and clients-get together. SBL should initiate different investment modes according to diverse needs of clients by conducting huge research and study etc. So that they can be familiar with the overall Investment mechanism of Standard Limited.
Table of Contents
Part 1: Introduction:
1.01: Introduction . . . . . . . . . . . . . . . . . . . . . 1.02: Origin of the report . 1.03: Objectives of the report 1.05: Limitations of the report
1-6
. . . . . 2 2 . 3 . 4 3
1.04: Methodology of the Report .
Part 2 : An overview of Standard Bank

2.01: Definition of Banking . . . . .
7-20
. 7
2.02 Functions of IBBL
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8
. 13
2.3: Organizational structure
Part 3: Investment function of SBL

3.01: Introduction: . .
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21-69
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21
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3.02: Investment Objectives of SBL 3.03: Investment Policy
3.04: Investment Strategies of SBL
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23 25 39 50
. 56
3.05: Investment Mechanism of SBL . 3.06: Investment Products/services of SBL
3.07: Special schemes under Investment modes

3.08: Data Analysis of Investment scheme
3.09: Operation Procedure in Investment of SBL

3.10: Investment pricing techniques. . .
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57
67
Part 4: Problem & Recommendation and Conclusion:

4.01: Problems and prospects of Standard bank limited 4.02: Recommendation 4.03: Conclusion . . . . . . . . . . . . . . .
70-77
70 73 76
Part-1 Introduction

1.01: Introduction
Bangladesh is one of the developing countries in banking sectors of the world. Day by day more and more bank is establishing in this country.In this sequence
Standard Bank Limited (SBL) was incorporated as a Public Limited Company on May 11, 1999 under the Companies Act, 1994 and the Bank achieved satisfactory progress from its commercial operations on June 03, 1999. SBL has introduced several new products on credit and deposit schemes. It also goes for Corporate and Retail Banking etc. The Bank also participated in fund Syndication with other Banks. Through all these myriad activities SBL has created a positive impact in the Market. The first task of bank is to acquire deposits and then to invest those in profitable business. Now in acquiring deposits, bank offers various deposit schemes and new service to its valued customers. To perform these functions simultaneously the bank divides its operations in three parts: General Banking, Investment, and Foreign Exchange. To carry and maintain the work schedule properly and to achieve the ultimate goal all the department of the bank should concentrate deeply and heartily on their assigned activities. Moreover all departments are equally important in a bank. During this internship period, I have tried best to use this opportunity to enrich my knowledge on the assigned topic. After observing thoroughly, I have completed this report on the basis of my finding and observing relating to the topic. The overall report has four main parts without the preparatory part. The introductory part of the report is the current one and the next part covers the SBL in brief. The third part of the report is about the Different Investment modes of SBL in New market Branch by the Investment analysis. Finally, covers the problems, recommendations and conclusion in brief.
1.02: Origin of the report This report is prepared as per internship requirement of my business Administration (BBA) program of Stamford University . I select Standard Bank Limited (SBL) for my internship program. I worked 3 Months in Standard Bank Limited (SBL) Dakkhin Khan Branch. In three months I have through various banking activities. And I have prepared my project paper on different investment modes of SBL as it is assigned by my honorable supervisor or course teacher.

1.03: Objectives of the report Every activity is directly related to achieve some specific objectives. My study also serves some specific objectives. The first objective of writing the report is fulfilling the partial requirements of the BBA program. The main purpose of the study is to analysis the different investment modes of Standard Bank Limited. Following are the main objectives: General objectives: To gain practical knowledge. To familiar the history and operations of Banking System in Bangladesh. To identify strength and weakness of Standard Bank Limited (SBL).
Specific objectives: To know the investment mechanism and product offerings in different modes of SBL. To know overall investment proposal, appraisal procedures, documentation system of SBL. To understand the differences with other banks regarding investments aspects To identify the problems related to investments faced by SBL. To make possible suggestions and recommendations for developing of Standard bank Bangladesh Ltd. 1.04: Methodology of the Report The study requires a systematic procedure from selection of the topic to final report preparation. The report is prepared mainly by using the secondary data and primary data. The data have been collected with help of a formatted questionnaire. a) Primary data Face to Face conversation with the respective officers and staffs. Practical desk work Interviewing officers and staffs. Relevant file study provided by the officers concerned. In-depth study of selected cases. b) Secondary data

Annual Report of SBL Desk report of the related department. Manuals of Standard Bank Limited (SRDP, SLP+, SMP+ etc.) Training sheets which are provided by Standard Bank Training and Research Academy (STRA) Objectives
Audit Reports Website Relevant books, Research papers, Newspapers and Journals. Internet and various study selected reports.
To be a dynamic leader in the financial market in innovating new products as to the needs of the society. To earn positive economic value addition (EVA) each year to come. To top the list in respect of cost efficiency of all the commercial Banks. To become one of the best financial institutions in Bangladesh economy participating in the most significant segments of business market that we serve.
Core Values
Our Shareholders: By ensuring fair return on their investment through generating stable profit. Our customer: To become most caring bank by providing the most courteous and efficient service in every area of our business.
Our employee: By promoting the well being of the members of the staff. Community: Assuring our socially responsible corporate entity in a tangible manner through close adherence to national policies and objectives.

1.05: Limitations of the report When I go for prepare a report as a BBA student. I faced some problems. These limitations are below: The time, 36 working days, is insufficient to know all activities of SBL and prepare the report. It was very difficult to collect the information from various personnel for their job constraint. As some of the fields of Islamic banking are not covered by my courses, thats why there was some problems to understand the activities. It is very difficult to analyze this issue without proper knowledge about Islamic banking. I carried out such a study for the first time, so inexperience is one of the main constraints of the study.
Part-2 An Overview of Standard Bank Ltd. (SBL)

2.01: Definition of Banking Banking is a business of banker, keeping or management of a bank.The Oxford English Dictionary . Banking means the accepting of lending or investment of deposit of many from the public, repayable on demand or otherwise and withdrawl by cheque, draft, order or otherwise.. Indian Banking Companies Act.1949
VISION To be a modern Bank having the object of building a sound national economy and to contribute significantly to the Public Exchequer. MISSION To be the best private commercial bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity. MANAGEMENT Among the living creatures on earth the greatest creation of the Almighty is mankind. Allah has given human being immense power of knowledge, wisdom, intelligence, consciousness and so on. These qualities have made them different from others. By the best use of these qualities in men it has been possible for our world of to day to reach this stage of modern science and technology. Of all existing powers, human resources are the most invaluable productive power in our daily life, in organizational needs and in diversified fields of action towards advancement. So, Human Resources Division of Standard Bank Limited plays a very vital role in formulating policies, developing practices and in achieving its goal by properly utilizing the existing skilled manpower and also hunting best hands through an abstract and absolute recruitment policy in the right dimension. Proper recruitment policy lays the solid foundation for strong erection towards establishment of an institution in initial stage and subsequent stable growth for its consecutive enrichment. The division has been performing this job of recruitment from the very inception of the institution maintaining 100% transparency for free & fair selection under a well-regulated system. Total numbers of 139

Executives. Officers and Staffs have been successfully recruited during the year 2008. Total manpower of the bank as of 31.121.2008 is 749. BOARD OF DIERCTORS Incompliance of Bangladesh Banks rule, the Bank has constituted Board of Directors with 11 members of high academic caliber and excellent professional knowledge, experience and skills together with the Managing Director as Ex-office Director. During the year 2008 there had been 19 Board meetings. The Board reviews the business of the Bank on monthly basis and provides guidelines and policies to the Management for catering better service and continuous growth of the Bank The Board also approves different loan & investment proposals and adopts business policies and plans for technological development inconsideration of the need of the clientele and requirement of time. EXECUTIVE COMMITTEE The Executive Committee of the Board consisted of 07 members (Six Directors and the Managing Director). The Committee approves the credit proposal as per approved guidelines and policy of the Board. The EC of the Board also ensures the implementation of policy and guidelines of the Board. There were 07 meetings of the Executive Committee during the year 2008. OBJECTIVE OF THE BANK The motto of the Standard Bank Limited is to explore a new horizon of innovative modern banking creating an automated and computerized environment providing one stop service and prepare itself to face the ne2w challenges of globalization and 21 st century. One of the main objectives of the Bank is to be provider of high quality products and services to attract its potential market. The Bank also caters the needs of its corporate clients and provides a comprehensive range of financial services to national and multinational companies. The dimension of responsible corporate behavior of the Bank is the maintenance of ethical standard in its functioning 2.02 Functions of SBL The operation of Islamic Bank Bangladesh limited can be divided into three (3) major categories:
1. General Banking: It includes: a. Mobilization of deposits b. Receipts and payment of cash. c. Handling transfer transaction. d. Operations of clearing house e. Maintenance of accounts with Bangladesh bank and other bank. f. Collection of cheques and bill. g. Issue and payment of Demand Draft, telegraphic transfer and payment order. h. Executing customers standing instructions. i. Maintenance of safe deposit lockers. j. Maintenance of internal accounts of the bank. While doing all the above noted work SBL issue cheques-book, Deposit account operating form Ledgers, Cash book, Deposit account ledgers, preparation statement of accounts, Pass book, Balance of different accounts and calculates profits. Standard Bank limited offers to open the following account to the depositors: SBL Current Account. SBL Savings Account. SBL term deposit Account. (3 month / 6 month / 12 month / 36 months term) SBL Special notice Account SBL Special savings (pension) Account (5 year to 10 year term) SBL Savings bond Scheme (5 year & 8 year term) SBL Foreign Currency Deposit Account. SBL Monthly Deposit Account.
DEPOSITS SBL always tried to provide the highest return on the deposits of the customers. The deposits of SBL reached the level of Tk. 2,930.47 crore during 2008 from Tk. 1,921.38 crore of

previous year. The growth rate is 52.52%. Cost of deposit for the year stood at 9.16% compared to the previous years cost of 9.67%. This was possible due to superior customer service delivered at the branch level. SBL is offering different types of deposit products for the customers. Among the products, Current Deposit, Fixed Deposits, different types of Scheme Deposits , Savings Deposits, Short-term Deposits and Foreign Currency Deposit from customers remained the core deposits of the Bank. SBL Regular income program (SRIP), Double Income Plus (DI+), SBL Regular Deposit Program (SRDP), Life Secured Double Income Program (LSDIP) etc. are some attractive products, which contributed to the growth of deposit. INVESTMENT Investment portfolio has always an inverse relationship with capital adequacy ratio although it contributes the desired bottom figure. Diversified Investment portfolio also reflects distribution of liquidity performance. During the year 2008. Our Investment portfolio comprised with Government Treasury Bill and other security. In the year 2008, the size of Investment portfolio raised at TK.3217.70 million against TK. 2013.75 million in the year 2007 showing an increase of 37.42%. RETAIL BANKING 2008 is the milestone in the history of Standard Bank Limited with the establishment of separate Retail Banking Division. The seeding of 1999 now has turned into a matured tree with multipurpose investment in the economic sector of our country. To exploit the rapidly increasing opportunities in the fast expanding SME setor & consumer financing through maximizing effectiveness of our product development distribution and sales strategies. So far we have sanctioned TK. 126,63,39,000/ through our Branches as well as from newly opened SME centers. LOAN AND ADVANCES Total loan and advances figure has been increased up-toTk. 27,190.00 Million as on December 31, 2008 in comparison with Tk.17310.87 million as on December 31, 2007 which indicates growth of 57% in recent time the Bank has given emphasis on service sector like telecommunication, tourism, hotel, motel, agriculture and other emerging sectors like

pharmaceuticals, power, steel re-rolling & ship breaking , ceramic etc. and extended credit in those sectors for contributing into GDP of the economy. The Bank is also looking for Financing in Banks careful and continuous effort in operation of credit has resulted in a very negligible percentage of non performing loan which is 1.87% i .e.Tk. 508.86 million as on December 31, 2008 out of total loan of TK. 27,180.00 million last year this percentage was 1.52% and adequate amount has been provisioned as per norms of Bangladesh Bank. The Bank is very much aware of this marginal Increasing trend and recovery efforts have been geared up to reduce the non performing loan amount. Bank is also aware of the on going World economic recession, accordingly careful and due steps are being taken to maintain asset quality OPERATING AND NET PROFIT Standard Bank Limited generated an operating profit of Tk. 146.39 crore in 2008 compared to TK. 69.71 crore in 2007 making a growth of 110.66%. After all provisions profit before tax stood at Tk. 108.39 crore compared to previous years Tk.61.29 crore rising by 77%. Earning per share (EPS) is Tk. 29.80 in 2008 compared to Tk. 17.62 in 2007 (Graph) EXCHANGE HOUSE Our Bank has already obtained approval of Bangladesh Bank for opening an Exchange House in U.K. and has also a plan to open Exchange House in Canada, USA. South East and Middle East especially in UAE near future subject to obtaining Bangladesh Banks approval. As a result, Bangladeshi expatriates will be able to remit their earnings easily and with comfort. In addition, employment opportunity will be created for Bangladeshi people abroad. Foreign Exchange Business: Foreign Exchange Business plays a vital role in providing substantial revenue in the bank income pool. Like all modern Banks IBBL operates in the area of the foreign Exchange business. IBBL performs the following tasks: Opening letter of credit (LC) against commission for importing industrial, agricultural and other permissible items under Islamic Shariah and Import policy. Opening letter of credit on the principle of Mudaraba sale, on the principle of Musharaka sale and under wage earner scheme.

Handling of export/import document. Negotiation of export / import document when discrepancy occurs. Financing in import under MPI (Mudaraba Post Import) Financing to export on profit or loss sharing. Handling Inward and outward remittance.
IMPORT During the year -2008, the import volume of the Bank was USD 504.56 million equivalents to BDT 35,689.24 million. Import volume increased with a growth rate of 36.46% then the previous year. EXPORT During the year 2008, total Export volume of the Bank stood at USD 378.72 million equivalents to BDT 25,072.07 million with compare to previous year export of USD 258.98 equivalents to BDT17,788.41 million which reflects a sound growth of 40.95%. Bank has given emphasis on export of traditional items like jute, jute goods, readymade garments & Leather etc and also on non-traditional items like Tiles, Bi-Cycle, Shrimp, Handicraft, Betelnut etc. Other activities The SBL performs the following task for the welfare of the society: Income generating scheme for the unemployed youth of the nation. Monorom sale center for marketing homemade garments, handicrafts and other items. Education scheme for assisting poor scholar student to case and help them to continue their study. Health scheme for fulfillment of health needs of rural people. Islamic bank hospital was established to extend first hand modern and contemporary medical service to the people on non-profit business. Humanitarian assistance is being provided to the poor, families affected by river erosion and for marriage of poor girls. Energy relief operations are provided to the people affected by natural calamities.
2.3: Organizational structure

BOARD OF DIERCTORS Incompliance of Bangladesh Banks rule, the Bank has constituted Board of Directors with 11 members of high academic caliber and excellent professional knowledge, experience and skills together with the Managing Director as Ex-office Director. During the year 2008 there had been 19 Board meetings. The Board reviews the business of the Bank on monthly basis and provides guidelines and policies to the Management for catering better service and continuous growth of the Bank The Board also approves different loan & investment proposals and adopts business policies and plans for technological development inconsideration of the need of the clientele and requirement of time.
Chairman
Vice Chairmen
Directors
Independent Director
EXECUTIVE COMMITTEE The Executive Committee of the Board consisted of 07 members (Six Directors and the Managing Director). The Committee approves the credit proposal as per approved guidelines and policy of the Board. The EC of the Board also ensures the implementation of policy and guidelines of the Board. There were 07 meetings of the Executive Committee during the year 2008.
Managing Director
Director
Deputy Managing Director

Directors
Executive Vice president

Presidents
Vice Presidents
STRATEGIC BUSINESS OUTLOOK Quality service and thus up-holding the goodwill is the mission and vision of the Bank and thus to achieve the recognition as one of the most reputed Bank focusing clientele all over the country. Keeping that mission and vision in view, last year the O-line Banking has been

started in almost all branches out of 32 with the modern STEALER software whereas 3 SME Center has been opened in rural areas. 8 more new branches and a good numbers of SME Centers will be opened in near future with the purpose to reach our service at every door steps. Real time banking will be eventually commenced with the products of Credit Card, Debit Card and ATM facility to meed-up the challenges of highly competitive banking sector within the country and abroad. SYNDICATION AND STRUCTURED FINANCE Syndication Finance has become a popular mode of financing from the viewpoint of both the sides i.e. borrower and lender especially for setting up a big size project/venture. There has been a surge in the number of syndication deals closed in the last year. Total participation in the syndicated loan at the end of December 31, 2008 is about TK. 200 Crore including telecommunication, airlines, pharmaceuticals, power, steel re-rolling & ship breaking and ceramic sectors. For the up coming year some potential clients have been solicited to extend the credit facility which will give the Bank a sound portfolio from this area of investment OBJECTIVES AND PRINCIPLES OF INVESTMENT The objectives and principles of investment operations of the bank are: To invest fund strictly in accordance with the principles of financial rules . To diversify its investment portfolio by size of investment, by (public & private), by economic purpose, by securities and by geographical area including industrial, commercial & agricultural. To ensure mutual benefit both for the Bank and the investment, by professional appraisal of investment proposals, judicious sanction of investment, close and constant supervision and monitoring there of. To make investment keeping the socio-economic requirement of the country in view. To increase the number of potential investors by making participatory and productive investment. To finance various development schemes for poverty alleviation, income and employment generation with a view to accelerating sustainable socio-economic growth and uplift of the society. To invest in the form of goods and commodities rather than give out cash money to the investment clients.

To encourage social uplift enterprises. To shun even highly profitable investment in the fields forbidden under are harmful for the society. SMES AND WELFARE ORIENTED SPECIAL SCHEMES SME has become a common slogan today around the world including Bangladesh. It is now very much in the public and trade support institutions policy limelight in Bangladesh. Financial institutions, including state owned and private commercial Banks, are also rendering their support by providing investment facilities and promotional services to SMEs. SMEs including micro-enterprises make a significant contribution to economic and industrial development in Bangladesh like any other like any other countries. Various survey findings shows that SMEs form the backbone of private sector, making up over90 percent of enterprises, and account for 80% of the industrial employment and about 40% of industrial output. Despite its tremendous impact and scope, access to finance has been the key problem for SMEs for last two decades despite taking various programs by the government. Under SME investment, the bank invests from Tk.2.0 lac to Tk.50.0lac in various manufacturing, trading and service concerns. Sectors under small enterprise are. Manufacturing: Enterprise involving production process viz. Food & Agro-based, Leather, Textile, Handicrafts, Pharmaceutical, Engineering, Electrical Accessories, recycling enterprises etc. Trading: Enterprises involving purchase & sales export and import etc. Service: Enterprises providing Transport, services to other persons/organization viz
Telecommunication, Workshop etc.
Information
Technology,
Hotel-Restaurants,
Under consumer financing, the Bank finances to the individuals for meeting their personal, family and household needs. The Bank has taken up various welfare oriented investment Schemes. The features of the Special Schemes are given here. HOUSEHOLD DURABLES SCHEMES The objective of the Scheme is to increase standard of living and quality of life of the fixed income group by extending them investment facilities to purchase household articles such as furniture like almirah, sofa set, wardrobe, electric and electronic equipment like television, refrigerator, gas cooler, air conditioner, PC, washing machine , electric generator-IPS,UPS,

motor cycle, corrugated iron sheet, cement, rod, wood etc. for construction of dwelling house, gold ornaments, tube-well, mobile telephone set etc, medical/engineering instruments/ equipment, educational instruments/equipment, computer, books etc. for students HOUSING INVESTMENT SCHEME The Bank has introduced this scheme to ease the serious housing problem in the urban areas and to make arrangement for comfortable accommodation of the fixed income group. Officials of the Defense forced, Permanent officials of Government, Semi Government and Autonomous Organizations , Teachers Graduate Engineers, Doctors, and Established professionals, Bangladeshi Officials of reputed Multinational companies, International financial Organizations, Donor Aunties, Foreign Embassies etc, Officials of local established & reputed public limited companies, Wage earner professionals like Doctors, Engineers, Accountants, Teachers and any other profession doing good job abroad with hand-some paypackage shall be eligible to apply for availing investment facilities under the Scheme. REAL ESTATE INVESTMENT PROGRAM Professionals, Service-holders, Businessmen, Real Estate Develop other categories of people who are not entitled for availing investment facilities under Housing investment Scheme, shall be eligible under program. Investment is to be extended to build new houses and for extension/ completion of the house already constructed, commercial building, shopping complex, flat/apartment etc. TRANSPORT INVESTMENT SCHEME To ease the existing transportation problem and ensure speedy economic growth and development of the country particularly the expansion of commerce and industry , the Bank has taken up this Scheme. Under scheme investment is being allowed to the existing successful businessmen and potential entrepreneurs in this sector for all types and water transport like bus, mini-bus, truck, launch, cargo-vessel, transport for rent-a-car service, and baby-taxi, tempo, pick-up van to employment, and ambulance for clinic & hospital. The Bank is also extending investment facilities to multinational companies, established business houses and well to do officials and professionals for acquisition of private cars, microbus and jeeps.
Standard Bank Limited Highlights

Sl No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Particulars Paid up capital Total capital Capital surplus (deficit) Total assets Total Deposits Total Loan & Advances Total contingent liabilities 2008 2,203,407,360 3,822,853,681 1,344,493,781 34,210,399,888 29,304,739,597 27,189,943,132 13,422,689,727 92.78% 1.87% 656,596,012 508,869,000 244,772,000 10.85% 31,799,247,709 2,411,152,179 7.61% 2.06% 245,015,223 29.80 29.80 8 2007 1,967,328.000 2,992,503,239 1,384,197,939 22,949,164,262 19,213,753,840 17,310,869,454 9,805,944,613 90.10% 1.52% 346,693,758 263,139,000 61,126,400 11.66% 20,589,129,533 2,360,034,729 7.73% 1.74% 155,596,133 17.62 17.62 19
&
Commitments Credit deposit ratio Percentage of classified loans against total loans and advances Profit after tax and provision Amount of classified loans during the year Provisions kept against classified loan Provision surplus/ (deficit) Total cost of fund Interest earning assets Non-interest earning assets Return on Investment (ROI) Return on Assets (ROA) Incomes from investment Earning per share (Taka) Net income per share (Taka) Price earning ratio (times)
In of the Summery Investment policy & the objective of Standard Bank s not only to aim profit, but to do good and welfare to the people. The bank upholds the concept that money, income and property belong to humanity and this wealth is to be used for the good of the society in general and human being in particular. Investment policy of Standard Bank is difference with other conventional Bank .The bank operate on ideal principles including profit and loss sharing, which is the root of all exploitation and is responsible for large-scale inflation and unemployment. The conditions said down for the validity of business and financial transactions must be fulfilled. The aim of these laws is to make the transfer of goods safe and easy and to facilitate the conclusion of economic transactions between the contracting parties. They also aim to eliminate misunderstanding in all types of contracts. The goal, in the final analysis is to

remove the causes of social tension or litigation and to promote a climate of peace and goodwill. Income from investments is accounted for on accrual basis except investments under Savings, Current, FDR, SRDP, DI+, Sod. etc. mode of Investment . Income in case of these products is accounted for on realization basis. Besides, fees and commission income are recognized when earned. Standard Bank is committed to try its best to do away with disparity and establish justice in the economy, trade, commerce and industry, build socio-economic infrastructure and create employment opportunities.
Part-3

Investment of SBL
3.01: Introduction:
Standard Bank Limited (SBL) was incorporated as a Public Limited Company on May 11, 1999 under the Companies Act, 1994 and the Bank achieved satisfactory progress from its commercial operations on June 03, 1999. SBL has introduced several new products on credit and deposit schemes. It also goes for Corporate and Retail Banking etc. The Bank also participated in fund

Syndication with other Banks. Through all these myriad activities SBL has created a positive impact in the Market. Objectives
To be a dynamic leader in the financial market in innovating new products as to the needs of the society. To earn positive economic value addition (EVA) each year to come. To top the list in respect of cost efficiency of all the commercial Banks. To become one of the best financial institutions in Bangladesh economy participating in the most significant segments of business market that we serve.
Core Values
Our Shareholders: By ensuring fair return on their investment through generating stable profit. Our customer: To become most caring bank by providing the most courteous and efficient service in every area of our business.
Our employee: By promoting the well being of the members of the staff. Community: Assuring our socially responsible corporate entity in a tangible manner through close adherence to national policies and objectives.
3.02: Investment Objectives of SBL

The objectives and principles of investment operations of the Banks are: 1. To invest fund strictly in accordance with the principles of Islamic Shariah. 2. To diversifies its portfolio by size of investment, by sectors (public and private), by economic purpose, by securities and by geographical area including industrial, commercial and agricultural.

3. To ensure mutual benefit both for the Bank and the investment client by professional appraisal of investment proposals, judicious sanction of investment, close and constant supervision and monitoring therefore. 4. To make investment keeping the socio-economic requirement of the country in view. 5. To increase the number of potential investors by making participatory and productive investment. 6. To finance various developments schemes for poverty alleviation, income and employment generation with a view to accelerating sustainable socio-economic growth and upliftment of the society. 7. To invest in the form of goods and commodities rather than give out cash money to the investment clients. 8. To encourage social upliftment enterprises. 9. To shun even highly profitable investment in fields forbidden under Islamic Shariah and is harmful for the society. 10. The Bank usually extends investments under the principles of Bai-Marabaha, BaiMuazzal Hire purchase under Shairkatul Melk and Musharaka. The Bank is making sincere efforts to go for investment under Mudaraba principle in near future. Allah has permitted Bai (Buying and Selling i.e. trading) & prohibited Riba. Standard bank ltd in all its transactions follow the verdict of Al-Quran and Sunnah and prohibit Riba in all its operations. The Banks conduct investment portfolio under three mechanism i.e. (1) Bai Mechanism; (2) Share Mechanism 7 (3) Ijara /Leasing Mechanism.
3.03: Investment Policy of SBL

Investment operation of a Bank is very important as the greatest share of total revenue is generated from it, maximum risk is centered in it and the very existence of a Bank mostly depends on prudent management of its Investment Port-folio.

For efficient deployment of mobilized resources in profitable, safe and liquid sector a sound, well-defined and appropriate Investment Policy is necessary. The important feature of the investment policy of the Bank is to invest on the basis of profitloss sharing system in accordance with the tenets and principles of conventional banking system. Earning of profit is not the only motive and objective of the Banks investment policy rather emphasis is given in attaining social good and in creating employment opportunities. Pursuant to the Investment Policy adopted by the Bank a 7-year Perspective Investment Plan has been drawn-up for the year 2003 to 2007 and put into implementation. Recently a further 5-year perspective investment plan has been drawn up for the year 2007 to 2012 and put into implementation. The plan aims at diversification of the investment port-folio by size sector geographical area, economic purpose and securities to bring in phases all sectors of the economy and all types of economic groups of the society within the fold of Banks investment operations. A sound well defined, well planned and appropriate investment policy frame work is a prerequisite for achieving the goal of the Bank i.e. implementation and materialization of the economic and financial principles of Islam in the Banking area and justice in trade, commerce and industry and to build socio-economic infrastructure, create opportunity for income and sustained economic growth of the country.
3.04: Investment Strategies of SBL

Risk in the investments and return there on are interrelated. An investment policy that emphasizes a high return must accept relatively high risk. Conversely, an investment policy that will tolerate only small amount of risk must be prepared to accept a relatively low return. As such, it is really difficult whether to select a high return port-folio on high risk or low risk port-folio with a low return. Nevertheless, considering all aspects following guidelines shall be followed as strategy for banks investments. i. ii. If two port-folios have the same risk but different returns, the port-folio having higher return shall be preferred. If the two port-folios have the same expected returns, but different degrees of risk, the port-folio with lower risk shall get preference.

iii. iv. If one port-folio has both a higher return and a lower risk than another, the first port-folio shall be preferred. Keeping in view the risk factor, the bank shall maintain flexibility in determination of rate of return on investments on case to case basis in consideration of the risk element involved in the respective investment. v. Emphasis is given for expansion and strengthening cottage and small industries sector and rural industries. This immensely potential industrial sub-sector shall create employment opportunities to rural and semi-urban population and shall have positive contribution in employment and income generation and poverty alleviation of the low-income group. vi. vii. Investment facilities shall be extended for establishment and expansion of export oriented forward / back ward linkage and import substitute industries. The bank requires retaining 10% of its total deposit liability as Statutory Liquidity Ratio (SLR) including 4% Cash Reserve Ratio (CRR) with the Central Bank. The bank may go for investments up to 90% of its total deposit. The perspective investment plan is being formulated quantifying the allocation of investments size-wise, sector-wise, and geographical area-wise, economic purpose-wise, security-wise and mode-wise keeping in view 20% projected growth of deposit each year. viii. Taking into consideration the broad objectives of the bank, national priority, socio-economic need, growth level of the economy, the investments port-folio of the bank may gradually be diversified and allocated in term of size, sector, geographical area, economic purpose, security and mode. ix. x. xi. xii. Safety, security, profitability and liquidity of Banks investments. Each branch invests, at least 50% of its deposits locally. Enhance of extending limit of good investment clients. Adopting of modern technology
So, banks investment policy, investment planning and investment budgeting, till situation changes / improves, shall aim at promotion of quality general investment.
3.05: Investment Mechanism of SBL
Deposit& Loan Schemes Deposit Schemes:

Bank is the largest depository institution of a country which collects surplus income from people and provide borrower so that they can continue their financial activities. they keep deposit and provide a rate of interest. For poverty alleviation, we need self employment, for self-employment we need investment and for investment we need savings. Standard Bank Limited is one of the depository institutions and it keeps various kind of deposit. The Savings Schemes are as follows with interest rate:
Current account:
Type of account in which a depositor can deposit as
much time in a day he wish but cant withdraw much time he wishes .and from this kind of account he doesnt get any interest. This type of account is suitable for businessman.
SB A/C or Savings Account:
type of account in which depositor
deposits money for a shot time period, he can deposit as much time as he wishes but cant withdraw more than two times in a week without permission of bank manager. In this type of account he gets a rate of interest.
FDR or Fixed deposit receipt:
A type of account in which depositor
deposits an amount for a fixed maturity period and before that he cant withdraw the money with interest. When he open this type of account he is provided no check but a receipt. Sl. 1 2 3 Deposit Products SB A/C STD A/C(Short term deposit) FDR (01 Month but less than 03 Months) FDR (03 Months but less than 06 Months) FDR (06 Months but less than 01 year) FDR (1 Year and above) There are also some other deposit schemes. Such as Rate of Interest 6.00% 5.00% 11.00% 11.00% 11.00% 11.00%
SSSS:
It stands for Standard Banks Special Savings account. It provides higher
interest rate. Such as 12%-15%.
Investment function of SBL SRDP:

It stands for Standard Bank regular deposit programmed. It provides
higher interest rate. Such as 12%-15%.
* If any monthly installment remains unpaid for 5 (five) consecutive months, the account will be closed automatically and the account will be settled as detailed below:-
Relationship/ Tenure Less than 1(one) year More than 1 year but less 3 years More than 3 years but less 5 years More than 5 years but less 10 years
Applied Interest No interest Savings Rate
Matured value of 3 years and rest as per prevailing interest rate on savings rate Matured value of 5 years and rest as per prevailing interest rate on savings rate.
If failure to pay monthly installment on due dates he/she will pay penalty of Tk. 20/-(Twenty) next subsequent installment. Monthly Installment, Tenure and Maturity Value will be as per following Schedule:Installment / Years 3 Years 5 Years 10 Years
300
500
1000
2000
2500
5000
10000
SRIP: It stands for Standard Bank Regular Income programmed. It provides higher
interest rate. Such as12%-15%..
12,550 20,900 41,800 83,600 1,04,500 2,09,000 4,18,000 22,800 38,000 76,000 1,52,000 1,90,000 3,80,000 7,60,000 58,700 97,800 1,95,600 3,91,200 4,89,000 9,78,000 19,56,000
1. SBL Regular Income Program is an income program, which helps you to earn a monthly fixed amount on your deposits at SBL for period of 3 years. 2. Deposit of Tk. 50,000/- (Fifty Thousand) and multiples thereof but maximum limit of Tk. 25,00,000/- (Taka Twenty Five Lac) at a time and depositor will earn 36 equal monthly

profit. Depositor can earn money due date as per following schedule:1,00,00 2,00,00 3,00,00 0 1,000 0 2,000 4,00,000 &
Deposit Amount Monthly Interest Payable
50,000 500
0 above 3,000 4,000 & Above
5.20 Lace Scheme:

laces.
Its a kind of deposit scheme. In this scheme depositor
have to deposit 5000 tk. per month up to 6 year. After maturity he gets back 5.20
1. Anybody can open this scheme by Deposited Tk.5,000/-(five thousand) only per Month. 2. The tenure of the scheme is 6 (six) years. 3. After Six Years Depositor will get Tk. 5,20,000/-. 4. If failure to pay monthly installment on due dates he/she will pay penalty of Tk. 20/-(twenty) on next subsequent installment. 5. In case of premature close of the account the account holder will get savings rate interest but not interest less than 6 (six) months. 6. If 4 (four) consecutive monthly installment unpaid the account will be closed automatically.
10 Lace Scheme:
Its a kind of deposit scheme. In this scheme depositor
have to deposit 4500 tk per month to 10 year. After maturity he gets back laces

with interest.
1. Anybody can open this scheme by deposited Tk. 4,500/- (four thousand five hundred) only per month. 2. This scheme tenure 10 (Ten) years. 3. After 10 (Ten) years depositor will get Tk. 10,00,000/. 4. If failure to pay monthly installment on due dates he/she will pay penalty of Tk. 20/- (twenty) next subsequent installment. 5. In case of premature close of the account the account holder will get saving rate interest but not interest less than 6 (six) months. 6. If 4 (four) consecutive monthly installment unpaid the account will be closed automatically.
DI+:
it stands for Double Income plus. In this scheme depositor will deposit a
specific amount at a time and after 5 years he will get the double. At present all this schemes are closed because Govt. has fixed new interest rate. So those clients who opened these account at that time there are getting benefit butno one can open such account.
1. Deposit of Tk. 10,000/- (Ten Thousand) and multiples thereof but maximum limit of Tk. 25, 00,000/- (Taka Twenty Five Lac) at a time will be acceptable under the program.

2. A specially designed receipt shall be issued for the deposit under the program. 3. The instrument shall be issued for 6 years. 4. At maturity after 6 years the depositor will be get double plus (DI+). 5. If any depositor intends to withdraw his deposit before maturity, the following rules will apply :No benefit including interest/profit shall be allowed for pre-mature encashment within 1 (one) year.
If the accounts/deposits are closed/en-cashed after 1 (one) year of its opening interest shall be allowed on the deposit at prevailing FDR Interest Rate.
6. The instrument will be acceptable as collateral security against any investment subject to registering lien with the issuing Branch. 7. In case of instrument get lost, the procedure for the issuance of a duplicate receipt will be the same as applicable in case of loss of FDR.
SBL Lakhapoti Plus ( SLP+ ) Programme

1. The depositor will have the option to choose any installment size at the time of opening of the account and will not be allowed change the size of installment afterwards.
2. In case of premature closing of the account minimum after 1 (one) year completion, the account holder will get Saving Rate of Interest only. But no interest will be paid before 1 (one) year completion of continued payment. 3. In case of premature close of the account the account holder will get savings rate interest but not interest less than 6 (six) months. 4. If any client fails to pay monthly installment on due dates in maximum 4 (four) months he/she

will pay penalty of Tk. 20/- (Twenty) per month to the next subsequent installment. 5. If any client fails to pay 4 (four) consecutive monthly installments the account will be closed automatically. Monthly Installment, Tenure and Maturity Value will be as per following Schedule :
Monthly Installment 3,900 2,500 1,400 600 Amount to be paid after Maturity 1,02,375 1,02,487 1,03,215 1,04,670
Tenure 2 Years 3 Years 5 Years 10 Years
SBL Millionaire Plus ( SMP+ ) Programme

1. The depositor will have the option to choose any installment size at the time of opening of the account and will not be allowed change the size of installment afterwards.
2. In case of premature closing of the account minimum after 1 (one) year completion, the account holder will get Saving Rate of Interest only. But no interest will be paid before 1 (one) year completion of continued payment. 3. In case of premature close of the account the account holder will get savings rate interest but not interest less than 6 (six) months. 4. If any client fails to pay monthly installment on due dates in maximum 4 (four) months he/she will pay penalty of Tk. 20/- (Twenty) per month to the next subsequent installment. 5. If any client fails to pay 4 (four) consecutive monthly installments the account will be closed automatically.

Monthly Installment, Tenure and Maturity Value will be as per following Schedule :
Monthly Installment 25,000 14,000 9,400 6,000 4,250 Amount to be paid after Maturity 10,23,487 10,30,015 10,38,488 10,43,070 10,49,000
Tenure 3 Years 5 Years 7 Years 10 Years 13 Years
Loan Schemes:
The Standard Bank is offering the following loan and advance product to the client for financing different purpose that fulfill the requirements of the bank and have good return to the investment as well as satisfy the client.
Types of loans: a) Short Term Loans:

Short term loans are granted to meet the working capital need of the borrowers. These loans are granted against the security of tangible assets mainly the movable assets like goods and commodities, shares, debentures etc. Bridge loans- Bridge loans are essentially short term loans which are granted to industrial undertakings to meet their urgent and essential needs during the period when formalities for availing of the term loans sanctioned by financial institutions are being fulfilled or necessary steps are being taken to raise the funds from the capital market. These loans are granted by banks or by financial institutions themselves and are automatically repaid out of amount of the term loan or the funds raised in the capital market.
b) Term loans:

Medium and long term are usually called Term Loans. These loans are granted for more than a year and are meant for purchase of capital assets for the establishment of new units and for expansion or diversification of and existing unit. Such loans constitute a part of the project finance which industrial enterprises are required to raise from different sources. These loans usually secured by the tangible assets like land, buildings, plant and machinery etc. This type of loan is advanced to industries and agriculture for fixed capital requirements. These loans are also granted to traders for purchase of fixed assets, to transport operators for purchase of vehicles, and to self-employed persons for purchase of equipment. These loans are usually extended for a term of 3 to 7 years and in special cases up to 10 years and are generally repayable by instalments. Since it will take a year or two to derive the full benefits of expansion or renovation, instalments for repayment may commence after one or two years of the disbursement of the loan. Interest is charged on annual basis.
c) Consumption loans:
Though normally banks provide loans for productive purposes only but as an exception loans are also granted on a limited scale to meet the medical needs or the educational expenses or expenses relating t o marriage and other social ceremonies etc. of the needy persons, such loans are called consumption loans.
d) Hire-purchase advances:
Under this arrangement, conventional banks grant advances to its clients engaged in hire-purchase business relating to transports, refrigerators, and televisions, for example. This type of financing is usually repaid with instalments including principal and interest. The bank generally requires immovable property as collateral against this type of financing.
e) Bills purchased/discounted:
Export-Import businesses are performed through opening of L/Cs with Bank. The client, while opening the L/C, comes to an agreement with the bank that the latter will repay the bill received on the farmer's behalf on a certain date onward in exchange for a specific rate of interest determined at the time of

agreement. If the bill happens to reach well ahead of the date mentioned, the bank may purchase the bill, if requested, with a discount. In this case, the bank makes the return twice: first, by charging interest and then by discounting the bill. In conventional banking loans and advances are generally extend as a Project Loan, Working Capital Loan, Trade Finance (Domestic & International), House Building Finance (Commercial & Residential), Contractors Financing, Receivable Financing, Cash Credit, Over Draft, Packing Credit, Trust Receipt, Guarantee, Letters Of Credit, Personal loan, Loan against TR (LTR), Payment against Documents (PAD), Loan against Import & merchandise.
Consumer Credit Scheme :

Lending rate has been shown in the following table where fixed rate (Bangladesh bank instructed rate) and mid-rate are given. Bank may re-fix 1.50 over the mid rate considering the risk involvement. These rates are effective from January 01, 2010.
SL 01 02 Particulars Consumer Credit Scheme (Staff) Consumer Credit Scheme (Commercial) Fixed Rate 12.00% -Mid Rate -14.00%
1.00% additional interest rate will be charged for default in payment/ adjustment. All other charges, commissions and fees shall remain unchanged.
House Building Loan:

Lending rate has been shown in the following table where fixed rate (Bangladesh bank instructed rate) and mid-rate are given. Bank may re-fix 1.50 over the mid rate considering the risk involvement. These rates are effective from January 01, 2010.
SL 01 02 03 Particulars House Building Loan (Staff) House Building Loan (Commercial) House Building Loan (Residential) Fixed Rate 9.00% 13.00% -Mid Rate --14.00%

1.00% additional interest rate will be charged for default in payment/ adjustment. All other charges, commissions and fees shall remain unchanged. The loan and advance products are as the following: Sl. 01 02 03 04 05 Particulars Agriculture/Agro based/Agro processing Term Loan (Large & Medium Scale Industry) Working Capital (Large & Medium Scale Industry) Term Loan (Other than Large & Medium Scale Industry) Working Capital (Other than Large & Medium Scale Industry) 06 07 Export Credit Commercial Lending (Cash Credit, Hire Purchase, PAD, TR, IBP etc.) 08 09 10 11 Commercial Lending (Food Grain) LDBP FDBP (i) Lease Finance (ii) Syndication & Structured Finance (iii) Club Finance (iv) NBFI Finance 12 Staff Loan (i) House Building Loan (ii) House Renovation (iii) CCS (iv) Transport Loan 9.00% 12.00% 12.00% Bank Rate ----12.00% 13.00% 13.00% ---13.00% ---14.00% 14.00% 14.00% -7.00% 13.00% --Fixed Rate 9.00% 13.00% 13.00% --Mid Rate ---14.00% 14.00%

13 Other Credit: (i) Small Cottage Industry (Term Loan) (ii) House Building Loan (Commercial) (iii) House Building Loan (Residential) (iv) Transport Loan (v) SOD against FDR and other scheme of the bank -13.00% ---14.00% -14.00% 14.00% 2% to 3% above of FDR/Concerned Scheme Rate Minimum Rate 12.00%
-(vi) SOD against share certificate (vii) SOD against work order/ other banks FDRs/ ICB unit certificate/ Wage Earners Development Bonds (viii) SOD General (ix) Consumer Credit Scheme (x) SME Finance (xi) Woman Entrepreneurs (xii) Loan Others (Not defined above) ---10.00% ---
14.00% 14.00%
14.00% 14.00% 14.00% -14.00%
1.00% additional interest rate will be charged for default in payment/ adjustment. All other charges, commissions and fees shall remain unchanged.
Investment function of SBL Fees & Charges for VISA Credit Card (Classic Card) of Standard Bank Ltd.
FEES AND CHARGES OF SBL VISA CREDIT CARD (Classic Card) PARTICULARS OF PAYMENT ANNUAL/RENEWAL FEE REPLACEMENT FEE SUPPLEMENTARY CARD FEE LATE PAYMENT FEE STATEMENT RETRIVAL FEE CHARGE SLIP RETRIVAL FEE PIN REISSUE FEEE CASH ADVANCE FEE FROM ATM CASH ADVANCE FEE FROM BRANCH CASH ADVANCE LIMIT INTEREST ON CASH ADVANCE CLASSIC LOCAL CLASSIC INT'L CLASSIC DUAL (TK) 600 300 FREE 200 50 200 500 ($) 10 4 FREE 3 1 3 7 ($) 12 5 FREE 4 2 4 8
TK.100 OR 2% OF WITHDRAWAL AMOUNT,WHICH EVER IS HIGHER TK.100 OR 2% OF WITHDRAWAL AMOUNT,WHICH EVER IS HIGHER 50% OF THE TOTAL CARD LIMIT 2.5% PER MONTH
SPECIAL NOTE:
1. FOR OUR OWN EMPLOYEES AND OTHER BANKERS, ANNUAL/RENEWAL FEE IS 50% OF THE PRESCRIBED AMOUNT. 2. FOR OUR OWN EMPLOYEES, LIMIT IS TWICE OF NET SALARY. 3. FOR CLIENTS, LIMIT DEPENDS ON BRANCH MANAGER'S RECOMMANDATION AND CREDIT COMMITTEE'S ASSESSMENT.

4. 15% VAT SHOULD BE APPLICABLE ON ANNUAL/RENEWAL FEE AND CASH ADVANCE FEE.
Fees & Charges for VISA Credit Card ( Gold Card ) of Standard Bank Ltd.
FEES AND CHARGES OF SBL VISA CREDIT CARD (Gold Card) PARTICULARS OF PAYMENT ANNUAL/RENEWAL FEE REPLACEMENT FEE SUPPLEMENTARY CARD FEE LATE PAYMENT FEE STATEMENT RETRIVAL FEE CHARGE SLIP RETRIVAL FEE PIN REISSUE FEEE CASH ADVANCE FEE FROM ATM CASH ADVANCE FEE FROM BRANCH CASH ADVANCE LIMIT INTEREST ON CASH ADVANCE GOLD LOCAL (TK) 1500 300 FREE 300 50 GOLD INT'L ($) 20 4 FREE 4 1 GOLD DUAL ($) 22 5 FREE 5 2
250 500
4 8
5 9
TK.100 OR 2% OF WITHDRAWAL AMOUNT,WHICH EVER IS HIGHER TK.100 OR 2% OF WITHDRAWAL AMOUNT,WHICH EVER IS HIGHER 50% OF THE TOTAL CARD LIMIT 2.5% PER MONTH
3.06: Investment Products/services of SBL
1. Trading modes (Bai-Mechanism) I. Bai-Murabaha

Meaning The terms Bai and Murabaha have been derived from Arabic words Murabaha and Bai. The word Bai means purchase and sale and the word Murabaha means in cash. BaiMurabaha means sale for which payment is in cash or in future fixed date or within a fixed period. In short, it is a sale on cash.
Definition Bai-Murabaha may be defined as a contract between a buyer and a seller under which the seller sells certain specific goods (permissible under Islamic Shariah and the Law of the land), to the buyer at a cost plus agreed profit payable in cash or on any fixed future date in lump-sum or by installments. The profit marked-up may be fixed in lump-sum or in percentage of the cost price of the goods.
Types of Murabaha In respect of dealing parties Bai-Murabaha may be of two types. Ordinary Bai-Murabaha

If there are only two parties, the seller and the buyer, where the seller as an ordinary trader purchases the goods from the market without depending on any order and promise to buy the same from him and sells those to a buyer for cost plus profit, then the sale is called Ordinary Bai-Murabaha. Bai-Murabaha on Order and Promise If there are three parties, the buyer, the seller and the Bank as an intermediary trader between the buyer and the seller, where the Bank upon receipt order from the buyer with specification and a prior outstanding promise to buy the goods from the Bank, purchases the ordered goods and sells those to the ordering buyer at a cost plus agreed profit, the sale is called BaiMurabaha on Order or Promise, generally known as Murabaha. This Murabaha upon order and promise is generally used by the Standard Bank, which undertake the purchase of commodities according to the specification requested by the Clients and sale on Bai-Murabaha to the one who ordered for the goods and promised to buy those for its cost price plus a marked-up profit agreed upon previously by the two parties, the Bank and the Clients. Important Features of Murabaha 1. A client can make an offer to purchase particular goods from the bank for a specified agreed upon price, including the cost of the goods plus a profit. 2. A client can make the promise to purchase from the bank, that is, he is either to satisfy the promise or to indemnify any losses incurred from the breaking the promise without excuse. 3. It is permissible to take cash/collateral security to guarantee the implementation of the promise or to indemnify any losses that may result. 4. Documentation of the debt resulting from Bai-Murabaha by a Guarantor, or a mortgage, or both like any other debt is permissible. Mortgage/Guarantee/Cash

Security may be obtained prior to the signing of the Agreement or at the time of signing the Agreement. 5. Stock and availability of goods is a basic condition for signing a Bai-Murabaha Agreement. Therefore, the bank must purchase the goods in accordance with the specifications of the client, thereby taking ownership of the goods before signing the Bai-Murabaha agreement with the client. 6. Upon acquiring the goods, the bank assumes the risk of ownership. In other words, the bank is responsible for damages, defects, and /or spoilage to the merchandise until such time that it is actually delivered to the buyer. 7. The bank must deliver the goods to the client at the date, time, and place specified in the contract. 8. The bank sells the goods at a price above the cost to obtain a profit. The sale price that is charged by the bank is agreed upon in the Bai-Murabaha. The profit can be stated in terms of a flat dollar amount or on a percentage of the purchase price. If a percentage is used, the percentage shall never be expressed in terms of time, in order to avoid confusion that the price is a form of interest (Riba), which is not allowed. 9. The price agreed to in the agreement is binding on both parties. 10. It is permissible for the bank to contract with a third party to buy and receive the goods on its behalf. This agreement must be a separate contract.
II. BaiMuajjal (deferred sale)

Meaning The terms Bai and Muajjal have been derived from Arabic words Ajal and Bai. The word Bai means purchase and sale and the word Ajal means a fixed time or a fixed period BaiMuajjal meas sale for which payment is made at a future fixed date or within a fixed period. In short, it is a sale on credit. Definition

Bai-Muajjal may be defined as a contract between a buyer and a seller under which the seller sells certain specific goods (permissible under Islamic Shariah and the Law of the Country), to the buyer at a agreed fixed price payable at a certain fixed future date in lump-sum or within a fixed period by fixed installments. The seller may also sell the goods purchased by him as per order and specification of the Buyer. Important Features of Bai-Muajjal 1. It is permissible and in most cases, the client will approach the bank with an offer to purchase a specific good through a Bai-Muajjal agreement. 2. It is permissible to make the promise binding upon the client to purchase the goods from the bank. In other words, the client is required to either satisfy the promise or to indemnify the bank for damages caused by breaking the promise without excuse. 3. It is permissible to take cash/collateral security to guarantee the implementation of the promise or to indemnify the bank for damages caused by non-payment. 4. It is also permissible to document the debt resulting from Bai-Muajjal by a Guarantor, or a mortgage or both, like any other debt. Mortgage/Guarantee/Cash security may be obtained prior to the signing of the Agreement or at the time of signing the Agreement. 5. Stock and availability of goods is a basic condition for signing a Bai-Muajjal Agreement. Therefore, the bank must purchase the goods in accordance with the specifications of the client, prior to signing the Bai-Muajjal Agreement with the client. 6. All goods purchased on behalf of a Bai-Muajjal agreement are the responsibility of the bank until they are delivered to the client. 7. The bank must deliver the goods to the client at the time and place specified in the contract. 8. The bank may sell the goods at a higher price than the purchase price to earn profit. 9. The price is fixed at the time of the agreement and cannot be altered. 10. The bank is not required to disclose the profit made on the transaction.
Investment function of SBL III. Bai -Salam

Meaning The terms Bai and Salam have been derived from Arabic words Bai and Salam. The word Bai means sale and purchase and the word Salam means Advance. Bai-Salam means Advance Sale and Purchase Definition Under this mode Bank will executive purchase contract with the client and make payment against purchase of product, which is under process of production. Bai-Salam contract will be executed after making any investment showing price, quality, quantity, time, place and mode of delivery. The profit is to be negotiated. The payment as the price of the goods is made at the time of Agreement / on the spot and the delivery of the goods is deferred. Important feature of Bai-Salam 1. Bai Salam is a mode of investment allowed by Islamic shariah in which products/commodities can be sold without having the said commodity either in existence or physical/ constructive possession of the seller. 2. Generally, Industrial and Agriculture products are purchased /sold in advance under Bai-Salam mode of Investment. 3. It is permissible to obtain collateral security from the seller client to secure the Investment.

4. It is also permissible to obtain mortgage or personal guarantee from a third party as security. Fixation of Purchase Price Points are to be considered at the time of bargaining with the client for fixation of price of the goods to be purchase under Bai-Salam. The time for taking delivery of the goods is anticipated time from the date of of Bai-Salam price to final disposal of the goods. Taking delivery and costs for marketing, transportation charges, and selling commission etc. Godown Guard's salary, insurance, godown rent etc. Present market price and the anticipated sale price at the time of disposal of the goods. Expected rate of returns is as per Head Office norms. All areas of appraisal should be carefully studied and the Appraisal forms (167B) should be completed properly. Purchase price shall be fixed-up with due study keeping in view that after sale of the goods the Bank gets profit as per expected Rate of Return. Taking Delivery The client shall exclusively utilize the investment for the purpose for which he has taken it and shall deliver/export the goods as per Bai-Salam Agreement. The Bank shall take delivery of the goods from the client either by itself or through its representative as per Bai-Salam Agreement and Delivery Schedule. The bank shall not disburse the investment unless the client completes all necessary arrangements for the proposed production /manufacture. In case the Client tails to produce and deliver/export the goods, he will immediately refund the money received from the Bank. If necessary Bank may authorize the Client in writing to sell/deliver/supply/export the Bai-Salam goods against his /their license /contract/sale agreement for and on behalf of the Bank as its agent at a price not lower than the price fixed

by the Bank provided a separate agency agreement is executed between the bank and the Client (Agent). Taking delivery of the goods after the due date of delivery as per schedule shall be at the absolute discretion of the Bank.
IV. Bai-Istishna
Meaning The word Istishna has been derived from the word Istishna which means industry or Manufacturing enterprise. Istishna means to goods manufactured by placing orders to a manufacturer. Definition Istishna'a is a contract between a manufacturer/seller and a buyer under which the manufacturer/seller sells specific product(s) after having manufactured, permissible under Islamic Shariah and Law of the Country after having manufactured at an agreed price payable in advance or by installments within a fixed period or on/within a fixed future date on the basis of the order placed by the buyer.
2. Share Mechanism I. Mudaraba

It is a form of partnership where one party provides the fund while the other provide the expertise, labor and the letter referred to at the Mudarib any profits accrued are shared between the two parties on a pre agreed basis, while capital loss in exclusively born by the partner providing the capital.

Important Features: Bank supplies capital as Sahib- al Mall and client invest if in the business with his The client maintains administration and management. Profit is divided as per agreement. Bank bears the actual loss alone. Client cannot take another investment for that specific business without the
experience.
permission of the Bank.
II. Musharaka(partnership)
The term Shirkat and Musharakah have been derived from Arabic words Shairkah and Sharika. The word shirkah means a partnership between more than one partners. Thus the ward Musharaka and Shirkat means a partnership established between two or more partners for purpose of a commercial venture participate both in the capital and management where the profit may be shared between the partners as per agreed upon ratio and the loss. If any incurred, is to be borne by the partners at per capital /equity ratio. In case of investment Musharaka meaning a partnership between the bank and the client for a particular business in which both the bank and client provide capital at an agreed upon ratio and bear the loss, if any in proportion to their respective equity. Bank may move itself with the selected client for conducting any Shariah permissible business under Musharaka mode. Important Features: The investment client will normally run manage the business. The bank shall take part in the policy and decision making as well as overseeing
(supervision and monitoring) the operations of the business of the client. The bank may appoint suitable personal(s) to run manage the business and to maintain books of accounts of the business property. As the investment client shall manage the enterprise, the bank may more share of profit to him than that of his proportion capital contribution. Loss, if any, shall be shared on the basis of capital ratio.
3. Leasing mode (Ijarah mechanism) I. Hire purchase /Ijarah
The term Ijarah has been derived from the Arabic works Ajr and Ujrat which means consideration, return, wages or rent. This is really the exchange value or consideration, return, wages, rent of service of an Asset. Ijarah has been defined as a contract between two parties, the Hiree and Hirer where the Hirer enjoys or reaps a specific service on benefit against a specified consideration or rent from the asset owned by the Hiree. It is a hire agreement under which a certain asset is hired out by the Hiree to a Hirer against fixed rent or rentals for a specified period. Elements of Ijarah There are three general and six detailed elements of Ijarah: 1. The wording: This includes offer and acceptance 2. Contracting parties: This includes a the owner of the property and the party that benefits from the use of the property. 3. Subject matter of the contract: This includes the rent and the benefit.
II. Hire Purchase Under shirkatul Melk

Hire purchase under shirkatul Melk is a special type of contract which has been developed through practice. Actually, it is a synthesis of three contracts: Shirkat, Ijarah and sale. Shirkat means partnership. Shirkatul Melk means share an ownership. When two or more persons supply equity, purchase an asset, own the same jointly, and share the benefit as per agreement

and bear the loss in proportion to their respective equity, the contract is called Shirkatul contract. Stages of Hire Purchase under Shirkatul Melk Thus Hire Purchase under Shirkatul Melk Agreement has got three stages: Purchase under joint ownership. Hire and Sale and /or transfer of ownership to the other partner Hirer.
Important Features 1. In case of Hire Purchase under Shirkatul Melk transaction the asset/property involved is jointly purchased by the bank and the client with specified equity participation under a Shirkatul Melk contract in which the amount of equity and share in ownership of the asset of each partner (bank and client) are clearly mentioned. Under this agreement the bank and the client become co-owners of the asset under transaction in proportion to their respective equity. 2. In Hire Purchase under Shirkatul Melk Agreement the exact ownership of both the bank and lessee client must be recognized. However, if the partners wish and agree the asset purchased may be registered in the name of any one of them or in the name of any third party clearly mentioning the same in the Hire Purchase Shirkatul Melk Agreement. 3. The share/part of the purchased asset owned by the bank is put at the disposal possession of the clients keeping the ownership with him for a fixed period under a hire agreement in which the amount of rent per unit of time and the benefit for which rent to be paid along with all other agreed upon stipulations are clearly stated. Under this agreement the client becomes the owner of the benefit of the asset, in accordance with the specific provisions of the contract that entitles the bank the rentals.

4. As the ownership of leased portion of asset with the bank and rent is paid by the lessee against the specific benefit, the rent is not considered as price or part of price of the asset. 5. In the Hire Purchase under Shirkatul Melk agreement the bank does not sell or the client does not purchase the asset but the bank promise to sell the asset to the lessee only if the client pays the cost price/equity price of the asset as fixed and as per stipulations on which the client also gives undertakings. 6. The promise to transfer legal title by the client and undertakings given by the client to purchase the ownership of leased asset upon payment part by part as per stipulations are affected only when it is actually done by a separate sale contract. 7. As soon as any part of bank's ownership of asset is transferred to the client that becomes the property of the client and hire contract for that share/part and entitlement for rent. 8. In Hire Purchase under Shirkatul Melk Agreement, the Shirkatul Melk contract is effected from the day the equity of both parties deposited 9. The asset is purchase and continues up to the day on which the full title of bank is transferred to the client. 10. The hire contract becomes effective from the day on which the bank transfers the possession of the leased asset in good order and usable condition, so that the client may make use of the same as per provisions of the agreement. 11. Effectiveness of the sale contract depends on the actual sale and transfer of ownership of the asset by the bank to the client. It is sold and transferred part by part it will become effective part by part and with the sale and transfer of ownership of every share/part, the hire contract for the share/part will lapse and rent will be reduced proportionately. At the end of the lease, the period when the full title of the asset will be sold and transferred to the client, the client will become the owner of both the benefit and asset, hire contract will fully end. 12. Hire Purchase under Shirkatul Melk is binding contracts, and the parties to it - the bank and the client are committed to meet their obligations in accordance with the relevant agreement. 13. Under this agreement, the bank acts as a partner, as a bank and at last as a seller; on the other hand the client acts as partner, as a client and lastly as purchaser.

14. Ownership risk is borne both by the bank and client in proportion to their ownership equity. 15. Under this agreement the role of client is one of a trustee, the leased asset being a trust in his hands: he will manage, in favor of the interest of the bank at his own cost the exact subject of client, except in cases of emergencies and acts of Allah. 16. The client is responsible for keeping the leased asset (s) in good condition throughout the whole period of lease, and if the asset is damaged due to negligence of the client, he shall be responsible to compensate for that. 17. The client cannot without obtaining prior written permission of the bank make changes in the exact item of lease, and or remove it from its place of installation, and transfer it to another location. 18. In a hire purchase under Shirkatul Melk agreement, any stipulation may be made, provided it is not against the nature and requirements of the contract itself, nor does it violate the client laws of Islam, and is also acceptable to both parties. 19. Hire purchase under Shirkatul Melk facileties may be for medium-term and longterm period, which may be utilized for the expansion of production and services. As well as housing activities. 20. The duration of hire purchase under Shirkatul Melk contract shall not exceed the useful life of the subject asset of the transaction. The bank should not normally enter into a Hire Purchase under Shirkatul Melk transaction for items with useful life of less than two years. 21. Hire Purchase under Shirkatul Melk transaction facilitates the client to get benefit from the lease asset in exchange of rental and also to become full owner of the asset by purchasing it. Hire Purchase under Shirkatul Melk Mode is a combination of three contacts. All rules governing the lease contract should be applicable in this mode also. Moreover, the rules for Musharakah and sale contracts will also apply to this. In addition, the following should also be followed: 1. Under Hire Purchase Shirkatul Melk Agreement, both the bank and the client must pay their respective equity as agreed upon to purchase the desired asset under joint ownership. 2. Ownership of the asset of both the bank and the client should be recognized as per law of the land.
3.07: Special schemes under Investment modes
I. Household durable scheme of SBL:

Standard Bank Limited has introduced Household Durables Investment Scheme which has already created great enthusiasm among the people and received tremendous response from them. Objectives are to assist the service holders with limited income in purchasing household articles such as
Objectives To assist the service holders with limited income in purchasing household durables. To assist the fixed income group in raising the standard of living. To create opportunity for the service holders to enjoy the benefit of modern and sophisticated living and at the time lead a decent and honest life.
ii. Investment scheme for doctors:

A good number or newly graduated doctors from Medical Colleges are unemployed. Many of the medical graduates are waiting for job because the opportunity for Government service is limited. If these young doctors could be self-employed by extending investment facilities, they could make modern facilities available at the door-steps of rural people. In view of the above facts, Standard Bank Limited has taken the initiative an introduced the " Doctors Investment Scheme" to ensure modern treatment and medical facilities available to the people through extension of Banks investment facilities for self-employment of newly graduated doctors and at the same time extending investment facilities to the established medical practitioners to procure modern and sophisticated medical equipment.
Objectives To provide investment facilities for establishment of chambers, clinics, pharmacies and procurement of medical equipment by the unemployed medical graduates and thus to provide self- employment. To assist newly passed unemployed medical graduates to establish clinics by way of formation of groups by 5 doctors.
To assist experienced and established physicians to procure improved and modern medical equipment and thus to improve the standard and techniques of treatment. To assist specialists and consultant physicians to procure specialised medical equipment for extending improved treatment to the people.
iii. Small business investment scheme

Bangladesh a third-wood developing country is rich in natural and human resources. In spite of vast possibilities, the majority people of the country live in hardship-below poverty tapped, explored and exploited. Physical labor is their only means of earning. A large segment of this populace is active youth force. Many of them are efficient, intelligent and energetic with initiative & drive and have courage to take risks. But they cannot uplift their socio-economic condition due to poverty, lack of financial support and other required facilities. 0bjectives To expand investment facilities for the small traders and entrepreneurs in urban and rural areas with a view to raise their level of income and to improve their quality of life. To inspire and encourage unemployed youths to establish small business enterprises and thereby to create opportunities for self-employment for ensuring social justice and welfare of the people in large scale.

To extend investment facilities to those small entrepreneurs who could not avail any credit or investment facilities from any bank or financial institutions or otherwise deprived of from such investment facilities.
iv. Housing investment scheme:

One of the basic human needs is to have a house to live in. A house is in an abode of peace and happiness. Housing has now become an acute problem in the country, especially in the towns, cities and metropolis. With their limited income, it has become almost impossible on the part of the lower middle class, middle class and sometimes, even for upper middle class to solve their housing problem. To meet this basic human need, Standard Bank Limited is committed to contribute to this end to provide a peaceful and happy lifes. Objectives To extend the benefits of the investment of the Bank under the Scheme to different sections of the people. To assist in solving the existing housing problem of the country. To assist the service holders and professionals with fixed income to arrange for houses of their own. To extend the investment facilities of the Bank to every nook and corner of the country, by size of investment, by sector of investment and on the basis of geographical area. To make investment facilities easily available under Islamic Shariah to those people who do not want to avail investment facilities from interest-based financial institutions.
v. Real estate investment scheme:

Professionals, Service-holders, Businessmen, Real Estate Developer and other categories of people who are not entitled for availing investment facilities under Housing Investment Scheme, shall be eligible under this programme Investment is to be extended to build new houses and for extension/ completion of the house already constructed, commercial building, shopping complex, flat apartment etc.
vi. Transport investment scheme:

Under this scheme, investment in being allowed to the existing successful businessmen and potential entrepreneurs in this sector for all types of road and water transport with simple and easy terms and conditions. The bank is also extending investment facilities to multinational companies, established, business houses and well to do officials and professionals for acquisition of private cars, microbus and jeeps. Objectives To assist in the development of communication system of the country. To help overcome the existing transportation problem. To assist solvent service-holders and professionals having fixed income for acquisition of private cars and thus to help them to improve their professional efficiency and the standard of living.
vii. Car investment scheme:

Car is considered as on essential mode of transport in the modern society, particularly by a section of the officials, business houses and business executives and established professionals for movement in discharging their duties and responsibilities punctually and efficiently. Many of these categories of people cannot purchase a car on payment of entire purchase value at a time out of their own sources. To meet this need Standard Bank has introduced the Car Investment Scheme for the mid and high ranking officials of government and semigovernment organizations, corporations; executives and directors of big business houses and companies arid also for persons of different professional groups on easy payment terms and conditions. Objectives To meet the demand of senior officials of different organizations, established business houses and companies and persons of various professional groups who essentially need a car but cannot afford to purchase on payment at a time. To assist the above categories of persons to procure a car on easy payment terms and conditions and thus become its proud owner.

To assist in minimizing transport problem in the private sector and help the mid and high ranking officials and professionals with fixed income in the improvement of their standard of living. To extend the range of Bank's investment facilities to various sections of people in line with the ideals of the Bank.
viii. Rural development scheme:

Standard Bank limited (SBL) envisages an economic system based on equity and justice. Taking into consideration that majority of the population below poverty line lives in rual Bangladesh, the Bank has devised a Rural Development Scheme (RDS) with a view to creating employment opportunity for them and alleviates their poverty through income generation activities. The SBL through its RDS project has been implementing integrated programs for the landless poor, slaborers and marginal farmers aimed at meeting their basic needs and promoting their comprehensive development. Consciousness among the poor needs should be enhanced so that they can lift their position in the socio-economic structure of the country. In order to consolidate their economic base, invested money should be used in income generating activities so the poorer section of the population can become self-reliant. RDS works for the realization of that objective.
Objectives The main objectives of the Scheme are: To extend investment facilities to agricultural, other farming and off-farming activities in the rural areas. To finance self-employment and income generating activities of the rural people, particularly the rural unemployed youths and the rural poor. To alleviate rural poverty through integrated rural development approach.

To extend investment facilities for rural housing, keeping in view the needs of housing facilities of the rural dwellers. To provide educational services and safe drinking water, sanitation & Medicare facilities to the down trodden people
Ix Agricultural implements investment scheme:

Bangladesh is predominantly an agricultural country with vast majority of people living in rural areas. Most of our people for their living are dependent on agriculture. Agriculture still contributes the lion share of the gross domestic product. But we could not as yet become selfsufficient in food production. We still import a bulk quantity of food grains from abroad to meet the deficit. We must modernize our agriculture and establish more and more industries in order to minimize imports. The Bank has introduced Agriculture Implements Investment Scheme" to provide power tillers, power pumps, and shallow tube wells, thrasher machine etc. On easy terms unemployed youths for self-employment and to the farmers help augment production in agricultural sector. Objectives To create opportunities for self-employment of un-employed rural youths. To help farmers to augment agricultural production. To assist in the introduction and use of modern technology in the agricultural sector. To play auxiliary role in achieving self-sufficiency in food production.
x. Micro industries investment scheme:

Standard Bank Ltd. has been appreciably participating in this direction by financing industrial sector. With a view to creating wider base for industries, the Bank has decided to launch "Micro Industries Investment Scheme" through its Branch.
Objectives

The main objectives of the scheme are as follows: To create income generating employment opportunities through establishment of new micro industries and BMRE of existing units by providing necessary investment facilities. To encourage establishment of micro industries in different areas of the country by potential entrepreneurs like educated unemployed youths, technically qualified and skilled /semi skilled persons. To encourage wage-earners to utilise their hard-earned money in the country by providing additional investment needs for establishment of micro -industries. To provide investment facilities for self -employment of the unemployed and under employed persons having education, knowledge, skill, experience and initiative to undertake micro industrial enterprises.
3.08: Data Analysis of Investment scheme Growth of special Investment scheme

Sl. No.Name of Schemes 2004 1 Rural Development Schemes 789.97 2 Household Durable Schemes 878.76 3 Investment Schemes for Doctors 85.54 4 Transport Investment scheme 2442.16 5 Car Investment Schemes 30.30 6 Small Business Inv. Schemes 501.26 7 Micro Industrial Inv. Scheme 17.18 8 Agricultural Implemets Inv. Scheme14.69 9 Housing Inv. Scheme 672.10 10 Real Estate Inv. Scheme 4713.70 Total: 10145.66
million)
8000 6000 4000 2000 0 2004 RDS HDS ISD 2005 TIS CIS 2006 SBIS MIIS 2007 AIIS HIS 2008 REIS
(Figures in
2005 1106.47 782.09 64.42 2947.38 27.75 629.81 10.21 12.53 609.78 5859.75 12050.19
2006 2242.22 699.95 33.38 2698.88 23.54 768.45 6.24 11.94 506.75 6582.85 13574.20
2007 2884.66 742.80 23.64 2624.24 31.46 876.34 35.79 13.61 485.29 6903.09 14620.92
2008 3011.72 638.40 15.34 3087.55 41.16 1104.65 31.50 27.21 429.24 7183.26 15570.03
3.09: Operation Procedure in Investment of SBL

Induction of client Application Categorization Processing and appraisal Sanction Documentation Purchase of goods by the Bank Taking delivery of goods by the Bank Sales and delivery of goods to the client
Induction of client:
Hole preliminary discussion with the prospective client regarding his investment needs, business experience, viability of the project and Shariah permissibility of the asset the business and the uses of the asset. Brief him on the salient features of Hire Purchase under Shirkatul Milk mode of Investment. Apprise, in particular, the usual terms and conditions under which the Bank made such investment. Discuss about Clients equity participation and its immediate availability. Look to the past performance of the Client, Check-up Head Office Current Investment Policy and Branchs track record of Hire purchase under Shirdatul Melk Investment of the item(s).

If the Proposal is found permissible under Islamic principles and suitable, advise the Client to submit formal Application. If not found suitable, regret politely. Request potential Client to open an Al-Wadeeah Current account. Let him maintain the Current account. Let him maintain the current Account satisfactorily for a reasonable period. (This will generally mean six month). Application: Obtain application in triplicate from the client of F-167A and record the same in the Investment Proposal Received and Disposal Register. Obtain and affix attested photograph(s) of the Proprietor /Partner/Directors/ Trustee/ Administrator on the top right hand corner of the application. Scrutinize the application of the Client to see thata. All columns are properly field in; b. Particulars and information given therein are complete and correct in all respects; c. All required Documents/papers as listed in the footnote for the application is submitted; d. It is signed by the client as per specimen signature with the bank and duly verified by the authorized official of the bank.
Categorization:
Categories the proposal as under: Hire Purchase under Shirkatul Melk Commercial: Investment on hire purchase under Shirkatul under Shirkatul Melk Commercial. Hire Purchase under Shirkatul Melk Industrial: Hire Purchase under Shirkatul Melk investment to industrial undertaking in the form Melk mode to individual
/firm/company /society for commercial purpose shall be termed as hire purchase

of land, building, machineries, equipment, transport, etc shall be termed as Hire Purchase under Shirkatul Melk Industrial Hire Purchase under Shirkatul Melk Agriculture: Hire Purchase under Shirkatul Melk investment to agriculture sector in the form of Agriculture equipments, machineries, shallow Tubewell, Tractor, trailers, Transport etc. shall be termed as Hire Purchase under Shirkatul Melk agriculture.
Hire Purchase under Shirkatul Melk Transport: Hire Purchase under Shirkatul Melk Industrial in the form of transport Bus, truck, car, taxi, lunch, steamer, cargo vessel, air transport etc. shall be termed as Hire Purchase under Shirkatul Melk transport. Hire Purchase under Shirkatul Melk Real Estate: Hire Purchase under Shirkatul Melk Industrial in the form of land building, market, apartments, for use /rental shall be termed as Hire Purchase under Shirkatul Melk Real Estate. Processing and Appraisal: Enter the Application in the Investment Proposal Received and Disposal Register(B53) and allot a Serial Number to it. Examine shariah permissibility of the goods. Reject the proposal outright, if not permitted by Islamic Shariah. Check-up Credit Restriction Schedule of Bangladesh Bank and Head Office Current Investment Policy Guidelines.

Visit the Business establishment of the Client. Talk to the business and important personalities of the locality to ascertain the Honesty, Integrity and Business dealings of the Client. Request for confidential report of the client from local Bank Branches. Confident Report from Credit Information Bureau (CIB) of Bangladesh Bank through Head Office Investment Division as per Instruction Circular of Head Office in this Regard. Obtain Financial Statement/Balance Sheet of the Client for the last three consecutive years for Investment Proposals of Tk. 50.00 lac or above as per Head Office Instruction. Inspect Land, Building, other Assets and Properties proposed to be Mortgaged or Hypothecated. Forward Documents, Title Deeds and other relevant Papers to approve Lawyer of the Bank for examination and furnishing his opinion. Obtain Lawyers Opinion as per clause No. 8.02.
Sanction: On completion of Appraisal as provided herein above, of the Proposal is found viable, issue Sanction Advice (F-188) if it is within the business power of the Branch mentioning all the terms and condition is duplicate to the Client and endorse copies to Zonal and Head Offices retaining one copy in the Clients file duly accepted by the Client. If the proposal is not within the Discretionary Power of the Branch, the Branch shall with Appraisal Report on F-167A and F-167B to Zonal Office/Head Office.

If the proposal is within the Business Power of the Zonal Office, Zonal Office shall accord Approval /Regret the Proposal. If the proposal is not within the Business of the Zonal Office shall forward the proposal to Head Office with their views and recommendations. On receiving the proposal and the Appraisal Report along with supporting papers Head Office will either approve or Regret. If the Branch/the Zonal Office /Head Office, the branch will issue the Sanction advice (F-188) with a copy to Zonal/HO duly recorded in /Facility Sanctioned Register (B119) with authority to the investment Client for the limit. If the client duly accepts the sanction terms and conditions enter the particulars of the sanctioned proposal in the limit Register (B-117) allotting a Fixed Serial number for each Client as per Limit Register which shall remain permanent irrespective of the mode(s) so long the Client continues business with the Bank. Open file Client-wise, affixing the Fixed Number allotted to him as per Limit Register (B-117) and Clients name, address, telephone number be recorded prominently in the inner side of the investment File for easy tracing in case of need. In case of investment to the existing Client, obtain required papers, document with the past performance and outstanding liabilities of the Client, if any and process of sanction the proposal as per instruction laid down here-in-above after due evaluation or study.
Documentation: Before purchasing the asset/property by the Bank, obtain sufficient collateral securities as mentioned in the sanction advice along with the following charge documents properly

executed i.e. duly filled in, signed, stamped, verified and witnessed where necessary: Hire Purchase under Sirkatul Melk Sanction Advice deal-wise duly accepted by the client. Hire Purchase under Shirkatul Melk Agreement (Deal-wise). Letter of Pledge (Deal-wise)/Mortgage Deed. Single party D.P. Note, if there is no guarantor. Double party D.P. Note, if there is guarantor (s) to be made by the Client in favor of the guarantor and endorsed by the later to the Bank. D.P. Note Delivery letter. Letter of Hypothecation for the asset(s) and Clients stock in Trade/work-in-process. Letter of Disclaimer, (if stored in Clients/Partys own/hired Godown). Insurance policy (If stored in Clients/Partys Godown/yard under Banks effective control) duly recorded in insurance register. Letter of guarantee. Balance confirmation letter. Letter of installments. Letter of Disbursement.
If the investment is made collaterally secured by Mortgage of property, obtain the following documents: In case equitable mortgage, Memorandum of Deposit of Title Deep (MDTD) signed by the owner of the property. In case of Legal Mortgage, Registered Mortgage Deed should be obtained. Personal Guarantee of the owners of the property on. Original Title Deeds with CS, RS, SA, Mutation Parcha, DCR of the property and Mutation record. Up-to-date Rent Receipt. Non-encumbrance Certificate along with Search Fee Paid Receipt of the concerned Registry/Sub-Registry office. Site plan (Map/Naksha) of the Mortgaged property.

Valuation Certificate (issued by a competent civil engineer and physically verified by the Branch Officials) countersigned by the Manager certifying the Market value and the Forced sale value. Value of the land and value of the construction to be shown separately taking the depreciated value of the construction/building into consideration as per standard norms. (The valuation Certificate should be self contained one giving full particulars of the land, i.e. Deg Number, Khatian Number, Plot Number, Holding Number, Mouza Number and name of the Mouza, Schedule (Chowhaddi), mentioning the name of the owners of the Land/Building along with a site plan duly signed by the owners of the property, the Client and attested by a civil Engineer and the Branch Manager). Lawyers certification about verification of the Title Deed which should be in clear terms that the property covered by the Title Deeds is free from all encumbrances and the mortgagor(s) have clear valued Title to the property and the same can be accepted as collateral security against the Investment/Facility. Legal opinion should be selfcontained, without any ambiguity and clean in all respects. An Affidavit be sworn in before a 1st Class Magistrate by the owner of the property to the effect that the property offered for mortgage as security is of his own and free from all encumbrances and the owners is/are lawful owners in possession and he/they will not Encumber/Transfer/sale and/or charge the property in any manner whatever to other during the continuance of Banks Investment without prior clearance of the Bank. Where the Investment is secured by pledge/Hypothecation of Stock-in-Trade, Machineries etc., also obtain the following Document: Letter of Pledge asset & goods security, for Clients stocks in Trade/work-in-Process etc. if any. Letter of Hypothecation for Clients stocks, stores, Work-in-Process etc. Legal Mortgage of Machineries with full details of each machinery
In case the investment Collaterally/ Additionally secured by Pledge of Shares of reputed Public Limited Company on Banks approved list and quoted in the Stock Exchange, the following additional documents are to be obtained:
Agreement for Pledge of share along with original share certificates (No share in the name of minor shall be accepted as security). Blank Share Transfer Deed in Duplicate on copy signed, dated and another copy signed and undated. Share Delivery letter addressed to the Bank. Letter to the concerned Company to register Line in Banks favor. This notice shall be sent be registered acknowledgement due post (registered A/D post) and confirmation of recording the Line shall be obtained from the concerned company. Letter of authority in Banks favor duly signed by the shareholder to collect dividend /Bonus on his behalf on the share pledged to the Band. In case of Investment to partnership Firms, obtain the following Document: a. Copy of partnership deed signed by all partners. b. Copy of partnership deed duly attested by a 1st Class Gazetted officer with the original copy and attested by the incumbent-in-charge of the Branch.
In case of investment to Private or public Limited Company, obtain the following additional document: Obtain certified copy of the Memorandum and Articles of Association of the company to ensure that the company has necessary power to borrow/avail investment from any Bank. Resolution of the board Directors of the Company to avail Investment/Facility/Borrow, Do Business with SBL and authorizing the office bearers to execute necessary Documents. Personal Guarantee of the Directors of the Company. If the investment is allowed on Hypothecation of assets, in addition to other charge documents, 1st charge under relevant section of the Companys Act-1994 shall be created in Banks favor in respect of Companys assets prescribed as security. This charge shall be created with the registrar of Joint Stock Companies within 21 days from the date of execution of relative Change Documents. Certificate issued by the registrar of Joint Stock Companies under section 114 of The Companies Act-1994 in respect of creation of charges.

Copies of Memorandum and Articles of Association with the latest amendments, if any, duly certified by the registrar of joint stock companies and attested by the managing director on every page with official seal of the company and duly verified by the Incumbent-In-Charge of the Branch. A copy of the Certificate of Incorporation duly attested by the Incumbent-In-Charge of the Branch. A copy of the certificate of commencement of Business (in case of publish Limited company) duly attested by the Incumbent-In-Charge of the Branch. In case of investment to a trust organization obtain the following Document in addition to other charges Documents: Copy of trust deed duly attested by a 1st class Gazette officer and verified by the incumbent-in-charge of the branch with the original copy. The Trust Deed must contain a clause authorizing the Trustees to do Business with banks and to avail investment facilities /borrow from banks. Resolution of the Board of Trustees to do business with IBBL and avail investment/borrow from SBL. The charge documents and all other agreements shall be signed /executed by persons authorized by all the members of the board of Trustees, in Trustees are authorized to delegate their powers by the trust Deed; otherwise all the Trustees must sign/execute the charge documents and all other agreements. Personal guarantee of all the members of the board of trustees must be obtained. In case of investment to co-operative security, obtain the following documents also: Clearance from the register of co-operative societies for doing business and avail faculties / investment from SBL within the annual borrowing limit of the society. Litter to be issued to; the concerned registrar of co-operative societies under registered A/D Mail informing about allowing investment /facility to the concerned society by the bank as per clearance accorded by him. Personal guarantee of the office Bearers of the society if their personal capacity.

A copy of the byelaws of the society duly certified by the registrar of the co-operative societies. Signature of the Client: After completion of Document, enter Document in Documents Execution Register (B103).Movement of Document, if any, should be duly recorded in the Document Ex-custody Register duly singed by the Custodians. Purchase of Goods by the Bank: Remember that Bai-Murabaha is perfectly a ligitimate transaction according to the Shariah, provided: That the goods desired by the Client are first purchased by the Bank and the ownership of the Bank on the goods is established, i.e. Bank must transform its money into goods. That after purchase of the goods, the risk of the goods is borne by the Bank until the possession of the Merchandise has been passed on the Client. That the specification of the goods, delivery schedule and other terms of contract are fulfilled. Obtain deal-wise application Order for Purchase on F-136 after due study. Open investment account in Investment Account Opening Register (B-102). Enter the Account Particulars in the Investment Ledger (B-105). It should be carefully noted that purchase of goods shall be made only after completion (F215). of all the Documentation formalities, including Pre-Audit memo

In case purchase of Bai-Murabaha goods by the Bank on Credit/deferred payment basis, the Bank shall execute a Credit Purchase Agreement with the seller to that effect mentioning date of delivery of Goods to the bank and that of payment by the Bank. If the goods are to be purchased from the local or outstation market and money is to be paid/remitted thereof and other expenses such s TA/DA, transportation etc, shall be borne by the Bank, which shall ultimately be loaded on the cost of Goods. Taking Delivery of Goods by the Bank: After finalization of purchse of Bai-Murabaha Goods either by the Bank officials or through any Agent from the local or out station market the Bank shall request the seller to deliver the goods purchased to the Banks Authorized official /Agent or to the Bank go down against proper acknowledgement. After taking delivery of the goods by the Bank or trough and Agent, the Bank shall make payment of the price of the goods to producers /sellers /supplier through DD/TT/PO against Cash memo which will exclusively be issued in the name of the Buying Agent. The Bank shall not be invest in such cases where the allotting Authority will not accept the Letter of Authority and agree to deliver the goods to the Bank as per authorization of this Allotted.
Some general instruction: The concerned department of head office, from time to time will supply rates stamp duty on various types of document. The incumbent in charge/-authorized official in pencil should verify signature of the client on document.

Before preserving the documents in strong room, the investment committee of the branch should certify that all the formalities of documentation have been properly done and completed strictly as per terms of the sanction advice (A format to be developed for the certificate as per Performa). After completion of documentation, enter the documents in documents execution register; put into an envelope/ file cover duly inscribing the name of the client dealwise and preserve in the strong room in fire proof safe/Almirah under Joint custody of the incumbent-in-charge of the branch and the officer-in-charge of the investment department 2nd officer of the Branch.
3.10: Investment pricing techniques

The pricing of investment products shall be judiciously and appropriately made taking in view the bank rate, cost of fund, risk factor involved, ruling investment prices of the banking sector, demand / supply interaction of the investment products, socioeconomic impact of investment products and national priority. Flexibility and competitiveness shall also be taken into consideration to ensure that the pricing is appropriate and competitive for easy marketing of the products, to yield fair rate of return on investments as well as to uphold the social welfare objectives of the special investment schemes. The pricing shall be reviewed and evaluated from time to time. The price of an investment is the lumsum profit that the buyers (investment clients) must pay to the sellers (bank); in addition to the amount principal. The price or the profit of an investment is determined by the true cost of the investee to the bank (base rate) plus profit / risk premium for the banks services land acceptance of the risk. The components of the true cost of an investment are: Administrative cost Cost of capital
These two components add-up to the banks cost. Administrative cost staff salary). Cost of capital = Return on capital or the Rate of Return investors = Administrative cost (godowon rent, transport cost and godowon

Profit charge= Purchase price (cost) + administrative cost +agreed Profit (Fixed in lump sum or in percentage of the cost price of the goods) Overdue There are many Causes of overdue. Some import causes are as follows: Wrong in the selection of the client Wrong in the selection of project / firm Not to assess / appraise project properly (management, credibility, marketing and financial aspects) Not to asses working capital. Over estimation or under estimation must be avoided. Not to finance timely Diversion of fund by the client Not buying and selling of the goods properly Dishonesty of the client Lack of supervision, monitoring and follow up Not to realize required equity of the client
Part-4 Identification of Problems on investment And Recommendation
4.01: Problems and prospects of Standard bank limited

At the time of my internship program I have found some Problems which are faced by the SBL incase of its mode of investment and its mechanism with the difference of conventional banking mechanism. Those are discussed bellow
General problems:
The decoration of the branches is older than other commercial banks. They dont use the Share Mode of investment. Absence of Islamic Money Market. State law defers with Islamic Shariah Absence of Islamic Economic system in Bangladesh. In the money market of Bangladesh, there is no easy provision to take short time loan from the bank.
1. SBL cannot invest in Shariah prohibited sector, so its investment scope is narrow in Bangladesh. 2. SBL lead their investment operation within limited number of investment mode. 3. Entrepreneurs have no clear concept about Shariah and investment mode. As a result they do not want to take investment easily. 4. Lack of Islamic Banking rule in our country, the authority of SBL faces various problems in their investment operation as a result it cannot run smoothly. 5. SBL is shariah based & welfare oriented, so they should engage in poverty alleviation & rural development seriously, but they could not reach their idle, as a result, profit is not increasing.

6. Most of the people of Bangladesh have no positive idea about Islamic Banking operation, some of them hold negative about the philosophy investment Mechanism of SBL, so they are not interested to generate the Banking activities with this Bank. 7. Investment is heart of the Bank and it is the main source of income of SBL, but lack of sufficient investment scope a large amount of money are being idle, as a result, profit is not increasing. 8. There no proper arrangement for women dealing in which many women clients is in a fix. 9. Lack of sufficient and skilled manpower some time SBL cannot invest their asset in proper portfolio. 10. Advertisement is the most important factors to introduce any organization, goods products or information to the people, but SBL is not eager to advertisement that can show their activities in the society.
Despite tremendous popular support spectacular success in terms of mobilization of deposit and distribution of profit Islamic banking in Bangladesh yet to achieve the desired level of success due to the absence of appropriate legal framework for carrying out Islamic Banking operations in the country. All the government- approved securities in Bangladesh are interest bearing; Besides, Islamic Money Market in Bangladesh is yet to develop. As a result the Islamic banks, which are committed to avoid interest, cannot invest the permissible part of their Statutory Liquidity Reserve and short Term Liquidity in those securities. SBL is experiencing different problems including the investment program under the Islamic Shariah. Due to this, it is yet to conduct the some schemes which are agreed with the Islamic law and some of the schemes has already been closed and which are under operations are not out of flows. The following section highlights the major findings of the problem that are associated with the investment program of SBL.
The problems of Bai-Murabaha:

Client doesnt repay the profit in time. Bank has to bear the risk of goods until those are delivered to the client and the bank is also responsible for any damages of the goods in this period.

The bank will face problem if the client refuse to satisfy the contract.
The problems of Musharaka:

The concept of Mudarib being amin (trustworthy) is the basis of the application of the technique. The fact that the shahib-al-mal (in this case the bank) bears all the loss in Musharaka may result in moral hazards. The presence of moral hazards may not allow the bank to make large investment with individual Mudarib. This may affect the profitability of the bank. Lack of knowledge Lack of expertise persons Lack of governmental support Lack of legal framework of Islamic Banking in Bangladesh Uncertain cost of capital
The problems of Bai-Muajjal:

Client doesnt repay the profit in time. Bank has to bear the risk of goods until those are delivered to the client and the bank is also responsible for any damages of the goods in this period. The bank will face problem if the client refuse to satisfy the contract.
The problems of Bai-Salam:

Discouragement of the technique is that it gives the bank no objective basis on which to anticipate its profit, obliging it to depend only on speculation about future prices.

Bai-al-Salam may not be attractive to the clients because of the possibility of being exploited by the bank through speculation over future prices.
The problems of Ijarah:

Purchasing of an asset, which requires certain marketing expertise. Maintenance of the asset and bearing all cost associated with replacement if the asset is deficient or fails to perform the service for which it has been leased. Uncertainty about the total life of the asset.
The problems of HPSM:

The asset can yield income only during its productive life. It is also uncertain what price of the asset will obtain if the bank wants to dispose it at any time during its productive life. Uncertainty about the extent to which the asset will remain on lease during its productive life. On expiry of the contract with the first lessee, the owner cannot be certain how long it may take to find another lessee or how much rent will then be agreed. Even if the first lessee renews the contract, it is quite possible that he might demand a reduction in the rent against possible defect that may adversely affect the productivity or service for which the asset was rented. Leasing based techniques creates liquidity problems.
4.02: Recommendation
Keeping in view the above mentioned facts an attempt has been made in this report, the following recommendation are given as to how SBL would be able to overcome its existing weakness and make SBL more successful in Bangladesh SBL should encourage potential customers, so that they be engaged in bring forth Halal Products by dint of Halal device, thus they can inspire their investment scope. SBL can create new investment mode to increase their investment mode by huge research & study.

By arranging various seminar & symposium, it can possible to understand the people about Halal, Haram and Shariah and influence them to increase Halal business. To run Islamic Banking Law in Bangladesh, the authority of SBL should create pressure to the government. As welfare oriented Bank, SBL should increase their operation to remove poverty alleviation specially rural area in establishing their Branches in every Upozilla. To remove the negative concept about Islamic Banking, SIBL can arrange varieties kinds of occasion like Islamic Jalsa, Oaaz Mahfil, and Seminer and they can operate mosque-based discussion about Islamic Banking Function countrywide. By increasing investment scope, SBL can proper utilize their idle money through Shariah.
In every branch must have women interpreter, who will deal with women customer and understand them about their activities. SBL can develop the skillness of the manpower by increasing their varieties kinds of training facility on such as Computer Course, English & Arabic Language Course, Business ethics, morality, organization behaviour, related topics of General Banking, Investment & Foreign Exchange etc. SBL have to conscious about their advertisement (even giving a permanent timing calendar of `Namaz and Roza' with adding a brief glance of Islamic Banking Operation to every Mosque in our country) so that it can reach its marketing activities in `Urban', `Sub Urban', `Rural', even up to hidden village.
SBL can diffuse its scope of investment through focusing Shariah concept regarding investment among the Bank officers; employer and the Clients by strong training, workshops and Clients get - together.
The authority of SBL should pressure on Government bodies to run proper and sufficient application of Islamic banking law in Bangladesh.
Practice amount of doubtful income declined substantially during the year as compared to the past few years, indicating more carefulness of the Management in complying with Shariah. As a result, idle money will be invested to increase potential profit of this Bank.
Inclusion of more subjects based on the Quran and Sunnah in the Training courses of the Islami Bank Training & Research Academy in order to develop human resources having morally.

This Bank should arrange a regular program like "SEMINAR" on Islamic Banking System and Islamic Banking Function countrywide to remove the negative impression about SBL. Arrangement of monthly /quarterly training courses /workshops for the clients selected by the Branches in order to promote Investment clients of the desired level. SBL should appoint a sufficient number of women employees to deal women entrepreneurs and professionals and understand their needs and thus create demand for investment. To fulfill the vision of "mass banking" this Bank should grants investment portfolio to new entrepreneurs /new businessmen new /companies etc. To gain success in the programs like "Poverty Alleviation and "Self Reliant" especially in rural areas, this bank should provides investment facilities on the basis of individual. The Bank should disburse total invested money at once to the clients to achieve full benefits of invested money. SBL should give more emphasize on their marketing effort and try to increase their sales force. SBL should appoint a Customer Relation Officer at branch level. SBL should make their credit approval and monitoring system more customers friendly. SBL should try to reduce their loan issuing and disbursement timing. SBL should increase their profit rate on different deposit scheme. SBL should try to attend different type of target customer. SBL should Introduce Islami Credit Cards as soon as possible. Maximum clients do not know about SBLs Loan schemes. They should carry out more promotional activities to make clients aware about their offers. It was observed that, SBL is absent in TV, Print Media, Bill Boards, and Sponsorships etc. Bank should advertise about itself so that it can attract more clients. That will increase the business volume of the bank.

To avoid bad debts SBL should give more emphasize on Lending Risk Analysis (LRA) and try to conduct sensitivity analysis. SBL should give highest attention on recovery of Bad Debts. This concerns the Image of The Bank, to the clients The shariah council should give emphasis on introduction of Mudaraba and Musharaka modes of investment under various investment schemes including Rural Development Scheme.
4.03: Conclusion
Most of the people in our country have a bad impression about SBLs operations regarding proper managing in accounting and we dont have arranging information in DSE and CSE, So public is not interest about our bank because they think investment with us will bring them difficulties and it is uncertain to return their capital. But I must confess that they might have some problems in expressing information but we are regular punctual and cooperative and effective with our banking system. We have several investment modes, deposit schemes and loan function that can hardly any conventional and Islamic bank offer. Moreover we are offering Islamic banking system which means no difference between investments of SBL loan/credit/advance of conventional banks for this reason. They are not too much interested to investment with SBL because majority of our people have no proper knowledge about the activities of Islami banking as well as its investment mechanism. They dont know mark up is accepted Islamic Shariah. The bank is committed to run its all activities as per Islamic Shariah. SBL through its steady progress and continuous success has, by how, earned the reputation of being one of the leading private sector banks of the country. The bank has shown steady progress in this important sector. Main items of import (by the help of SBL) machinery, garments, fabrics and accessories, ships for scrapping, rice, pharmaceuticals etc. whereas main items of exports are jute goods, readymade garments, leather, frozen fish, fertilizer etc. SBLs capital adequacy, deposits, reserves, earning per share, export, import and remittances are increasing day by day. So, no doubt SBL is a growing profitable financial institute and its strengths are high.
Bibliography
1. Introduction to Standard Bank Limited. - Published by SBL. 2. Annual Report of SBL, 2012. 3. www.standardbank.com.bd
4. Interview with Mr.. Sanjay Deb Nath (Sr. ofiicer) 5. All officials of SBL, Dakkhin khan br. Uttara, Dhaka. 6. Office documents of SBL. 7. Office publications of SBL.
Published by SBL.

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Internship Report On Different Investment Function of Standard Bank Limited

Date: August 19, 2011

Stamford University Bangladesh

Investment function of SBL

Subject: Submission of internship report on Different Investment Function of Standard Bank

Investment function of SBL

Investment function of SBL

Investment function of SBL

1.04: Methodology of the Report .

Part 2 : An overview of Standard Bank

2.02 Functions of IBBL

2.3: Organizational structure

Part 3: Investment function of SBL

3.02: Investment Objectives of SBL 3.03: Investment Policy

3.04: Investment Strategies of SBL

3.05: Investment Mechanism of SBL . 3.06: Investment Products/services of SBL

3.07: Special schemes under Investment modes

3.09: Operation Procedure in Investment of SBL

Part 4: Problem & Recommendation and Conclusion:

Investment function of SBL

Investment function of SBL

Investment function of SBL

Investment function of SBL

Investment function of SBL

Investment function of SBL

Part-2 An Overview of Standard Bank Ltd. (SBL)

Investment function of SBL

Investment function of SBL

Investment function of SBL

Investment function of SBL

Investment function of SBL

Investment function of SBL

Investment function of SBL

2.3: Organizational structure

Investment function of SBL

Deputy Managing Director

Executive Vice president

Investment function of SBL

Investment function of SBL

Telecommunication, Workshop etc.

Investment function of SBL

Investment function of SBL

Standard Bank Limited Highlights

Investment function of SBL

Investment function of SBL

Investment function of SBL

Investment function of SBL

3.02: Investment Objectives of SBL

Investment function of SBL

3.03: Investment Policy of SBL

Investment function of SBL

3.04: Investment Strategies of SBL

Investment function of SBL

3.05: Investment Mechanism of SBL

Deposit& Loan Schemes Deposit Schemes:

Investment function of SBL

Type of account in which a depositor can deposit as

SB A/C or Savings Account:

type of account in which depositor

FDR or Fixed deposit receipt:

A type of account in which depositor

It stands for Standard Banks Special Savings account. It provides higher

interest rate. Such as 12%-15%.

Investment function of SBL SRDP: