Assignment on:

Deposit mix of
Shahjalal Islami Bank

Submitted to:
Mr. Md. Shahidul Islam

Lecturer

Department of Banking

University of Dhaka

Submitted by:

Name ID

Md. Mezbaul Haider 16-030

Md. Mashrur Ali 16- 031

Rafsan Mahtab 16-087

Nazim Reza 16-011

Tauhidul Islam 16-071

Rezaur Rahman 16- 040

Md. Nahid Bulbul 16-078

 Letter of Authorization
Date: April 19, 2010

Students of Principle and practice of banking

B-102, 1st year

BBA, 16th batch

Department of Banking

Faculty of business studies

University of Dhaka, Bangladesh.

Dear students,

You are here assigned a report on “Deposit mixing of Shahjalal Islami Bank Ltd” in this course
presentation.

Assigned report must follow a standard system and methodology and should contain sufficient
information. The university will appreciate any additional benefit that can be obtained from your report.

You are required to submit the report on April 22, 2010 online.

I wish you best of luck.

Sincerely,

Mr. Md. Shahidul Islam

Letter of Transmittal
Date: April 22, 2010

Mr. Md. Shahidul Islam

Course Instructor

Principle and practice of banking

Department of banking

Faculty of business studies

University of Dhaka, Bangladesh.

Dear Sir,

It gives us pleasure to submit the report on “Deposit mixing of Shahjalal Islami Bank Ltd” as you
authorized us to prepare by April 22, 2010.

It was fantastic opportunity for us to prepare the report under your guidance, which really was a great
experience for us. We have collected the information from Shahjalal Islami Bank Ltd and text book.

We have worked hard and tried our best to prepare the report. We will be very pleased to provide
further information if necessary.

Sincerely,

Md. Mezbaul Haider 16-030

Md. Mashrur Ali 16-031

Rafsan Mahtab 16-087

Nazim Reza 16-011

Tauhidul Islam 16-071

Rezaur Rahman 16-040

Md. Nahid Bulbul 16-078

 Acknowledgement
At first, we would like to thank our respective course teacher Mr. Md. Shahidul
Islam for assigning us such an interesting topic that we can eagerly work on. We
gratefully declare that without her guidelines and suggestions it would not be
possible for us to complete this task.

Many of our fellows and seniors here helped us a lot by generously supplying
comments; suggestions and giving inspiration .We have collected data from
internet, many books and business journals. We have discussed and worked as a
group and finally we have created an assignment as a group.

Last but not the least, our hearts felt thanks to our family members, classmates
and seniors for helping us in creating this report.
 EXECUTIVE SUMMARY
We are assigned to analyze the Deposit Mix of a bank this report is
about the deposit mixing of Sahajalal Islamic Bank. Sahajalal Islamic
Bank is one of Islamic banks in our country has started its activity from
10th May 2001.it has 34 branches. Among them we chose 5 branches
and analyzed their deposit mix in the year 2009 to make this report.
Mainly the bank has four types of deposit accounts - Al-Wadiah
current deposit; Mudaraba savings deposit, Mudaraba short-notice
deposit, Mudaraba term deposit. We focused on all of the accounts to
make this report. We collected data from both Primary sources
(interviews) & Secondary sources (monthly statements of deposits).
We applied the Empirical method & used some mathematical &
statistical tools, tables, MS Excel software etc. Then we analyzed the
reasons of the deviations of the deposits among the branches through
the year 2009 & showed our findings. Considering its collection of
money we get that in almost all of its branches, the amount of
Mudaraba term deposit is highest. But in case of account number the
bank has Mudaraba savings deposit account most. Besides these we
have included a total overview of the total deposit mixing of the
bank. At the very end we analyzed the cyclical variation branch wise.
Whenever we found mismatch between our desired results & the
actual results we recommended for those branches.
Shahjalal Islami Bank:

Shahjalal Islami Bank Limited (SJIBL) commenced its commercial operation

in accordance with principle of Islamic Shariah on the 10th May 2001 under the
Bank Companies Act, 1991. During last eight years SJIBL has diversified its
service coverage by opening new branches at different strategically important
locations across the country offering various service products both investment &
deposit.

Islamic Banking, in essence, is not only INTEREST-FREE banking business, it

carries deal wise business product thereby generating real income and thus
boosting GDP of the economy.

Board of Directors enjoys high credential in the business arena of the

country, Management Team is strong and supportive equipped with excellent
professional knowledge under leadership of a veteran Banker Mr. Muhammad Ali.

Company’s Vision
To be the unique modern Islami Bank in Bangladesh and to make significant
contribution to the national economy and enhance customers' trust & wealth,
quality investment, employees' value and rapid growth in shareholders' equity.
Company’s Mission

 To provide quality services to customers.

 To set high standards of integrity.
 To make quality investment.
 To ensure sustainable growth in business.
 To ensure maximization of Shareholders' wealth.
 To extend our customers innovative services acquiring state-of-the-
art technology blended with Islamic principles.
 To ensure human resource development to meet the challenges of
the time.
 Our Strategies
 To strive for customers best satisfaction & earn their confidence.
 To manage & operate the Bank in the most effective manner.
 To identify customers needs & monitor their perception towards
meeting those requirements.
 To review & updates policies, procedures & practices to enhance the
ability to extend better services to the customers.
 To train & develop all employees & provide them adequate resources
so that the customers needs are reasonably addressed.
 To promote organizational efficiency by communicating company
plans, polices & procedures openly to the employees in a timely
fashion.
 To cultivate a congenial working environment.
 To diversify portfolio both the retail & wholesale markets.
Our Strategies
• To strive for customers best satisfaction & earn their confidence.

• To manage & operate the Bank in the most effective manner.

• To identify customers needs & monitor their perception towards

meeting those requirements.

• To review & updates policies, procedures & practices to enhance the

ability to extend better services to the customers.

• To train & develop all employees & provide them adequate resources
so that the customers needs are reasonably addressed.

• To promote organizational efficiency by communicating company

plans, polices & procedures openly to the employees in a timely
fashion.

• To cultivate a congenial working environment.

• To diversify portfolio both the retail & wholesale markets.

Al Wadiah Current Deposit Accounts:
Minimum amount for Current Deposit Account
Al-Wadiah Current Deposit Accounts shall be opened with a minimum of Tk. 5,000/ which is also
the minimum balance required to be maintained by the Account holder.

Payment of funds on demand

Funds in the Al Wadiah Current Deposit shall be payable on demand in accordance with normal
banking traditions, during the banking hours.

No Profit
No profit on Al Wadiah Current Deposit Account balances shall be allowed to the account
holder.

Sevice charge

Service charge is applicable in case of this account.

Mudaraba Savings Deposit Accounts (MSD):

Minimum amount for Mudaraba Savings Deposit Account

a. Mudaraba Savings Deposit Account shall be opened with a minimum of Tk.2,000/ which
is also the minimum balance required to be maintained by the Account holder for
sharing profit on his deposit.

b. The deposit is accepted on the basis of Mudaraba principle of Islamic Shariah and the
fund is invested in accordance with Islamic principles .

Rate of profit
Profit on Mudaraba Savings Deposit Accounts shall be allowed at the rate as advised by Head
Office from time to time under Mudaraba Principle.

Profit application of
Profit is to be applied on half yearly basis i.e. in June & December and Profit shall be accrued in
each month.
 Withdrawals process
a. Maximum withdrawals of Tk.25000/ from Mudaraba Savings Deposit Account twice a
week are admissible.

b. Withdrawals from Mudaraba Savings Deposit Account up to a maximum 25% of

deposits, which should not exceed Tk. 25,000/ in a week.

No Overdrawing
No Mudaraba Saving Account shall be allowed to be overdrawn

Mudaraba Short Notice Deposit Accounts (MSND):

Period of Notice
1. The deposits held in these accounts shall be payable on short notice period but the
notice must not be less than 7 days.

2. The deposits may be accepted for the period and rates of profit are fixed by Head
Office from time to time.
a. Profit shall be paid only for each day held, but profit on notice period will be
forfeited; if withdrawn without notice.
b. Profit on MSND account shall be applied on yearly basis (i.e. December each
year)

Mudaraba Term Deposit Accounts (Mtd):

Amount & the period of Mudaraba Term Deposit

a. Mudaraba Term Deposit Accounts have tol be opened for a fixed period varying from 90
days, 180 days, 360 days or above and are payable at a fixed date of maturity.

b. Mudaraba Term Deposit Accounts can be opened with a minimum deposit of Tk.2000/.

Rate of profit
Profit on Mudaraba Term Deposit Account shall be at rates fixed by Head office from time to
time depending on their period of maturity.
Available deposit schemes:

1. Mudaraba monthly income

2. Mudaraba millionaire
3. Mudaraba hajj deposit
4. Mudaraba housing deposit
5. Mudaraba small business
6. Mudarba mohor deposit
7. Mudaraba marriage deposit
8. Mudaraba education deposit
9. Mudaraba special term deposit
Mudaraba Monthly Income Deposit Scheme:
This is a Deposit Scheme based
on Shariah Principles where the depositor/investor gets monthly income from the
profits of their one-time deposit with the bank. . The scheme is designed to
attract the retirement benefits of service holders and those persons who intend
to meet the monthly budget of their families from the income out of their
deposit.

Mudaraba Millonaire Scheme:

This is a deposit scheme for those people who wish

to start a small business in future or any other person who wants to get a million
taka after a specific period. Clients deposit their amount in this scheme every
month and get 1 million taka at its maturity.

Monthly Estimated amount after

Duration
Installment maturity
15 years 2,050/- Tk. 10 lac
20 years 1,050/- Tk. 10 lac
25 years 550/- Tk. 10 lac

Mudaraba Hajj Deposit:

Hajj is one of the most important prayers of the Muslim

people. But it needs huge amount of money to complete Hajj. To ease the
arranging of this money SIBL has introduced this deposit scheme.

Mudaraba housing deposit:

By this deposit scheme clients can get their

desired amount of money to build their own address. There are several
time periods for this scheme such as 5, 10,15or 20 years.
Mudaraba Marriage Deposit:
SIBL has introduced this kind of deposit scheme to make the
matrimony more trouble-free as it is a wealth overwhelming process and a great matter of concern for
parents. Parents can assure a secured future for their children by opening an account like this which is
the purpose of this deposit scheme.

Mudaraba Lakhopoti Deposit:

Small amount of money of a poor person can be increased to an
amount of 1 lakh taka by saving money under this deposit scheme which is going to be a huge financial
gain for the family of that poor person. Poor people can save their spare money in this deposit scheme
which will gradually boost to a pleasing level. SIBL has taken the initiative of introducing this deposit
scheme to encourage the poor community to maintain their small savings.

Mudaraba Mohor Deposit:

SIBL has set off this deposit scheme to protect the right of a wife on her
husband and to curtail the liability of a husband as paying mohor(wealth that must be given to a wife by
her husband) is obligatory in Islam. Any Bangladeshi married or unmarried man can save money under
this deposit scheme.

Mudaraba Education Deposit:

Children of the poor people can not get higher education as the expenditure
of education gets higher from primary level to higher level. That is why the poor students can not get
higher schooling which also causes for a country to loose a huge number of bright sophisticated civilians.
Taking this matter in concern SIBL has introduced this deposit scheme which will help guardians to
continue the cost of education of their children if they save money by opening an account under this
deposit scheme.

Mudaraba special term deposit:

Under this deposit Scheme an account holder can receive expected proceeds
from the beginning of investment. Account holder can withdraw the money anytime. After getting
proceeds the account holder can again invest the money.
Profit Rate on Various Accounts:

Type of account Profit Rate Profit Rate

1/1/2009 31/12/2009

Al-Wadiah Current Accout N/A N/A

Mudaraba Savings Deposit 5.50% 5.50%

Mudaraba Short Notice Deposit 5.00% 5.00%

Mudaraba Term deposit 8.00% 8.75%

Charges On Various Accounts:

Description 1/1/2009 31/12/2009

Tk. 0 to 10000 No charge No charge

Tk. 10,001 to tk. 20,000 120 No charge

Tk. 20,001 to 100,000 120 120

Tk. 100,001 to tk. 1,000,000 250 350

Tk. 1,000,001 to tk. 10,000,000 550 1000

Tk. 10,000,001 to tk. 50,000,000 2500 5000

Over 50,000,000 tk. 5000 10000

Condition of the accounts at the beginning of the year 2009:
Mitford Branch

Type of account Number of Total Amount

account
Al-Wadiah current deposit 980 5,55,80,534.92
Mudaraba savings deposit 1170 5,28,31,217.86
Mudaraba short-notice deposit 104 3,05,28,937.96
Mudaraba term deposit 280 120,60,66,330.69

Condition of the accounts at the end of the year 2009:

Mitford Branch

Type of account Number of Total Amount

account
Al-Wadiah current deposit 1070 5,63,30,306.79
Mudaraba savings deposit 1425 7,28,11,549.11
Mudaraba short-notice deposit 110 4,65,18,023.92
Mudaraba term deposit 480 99,83,49,305.78
Condition of the accounts at the beginning of the year 2009:
Motijheel Branch:
Type of account Number of Total Amount
account
Al-Wadiah current deposit 689 3,89,67,520.50

Mudaraba savings deposit 1348 7,56,89,380.25

Mudaraba short-notice deposit 208 5,78,56,980.34

Mudaraba term deposit 310 68,45,89,870.80

Condition of the accounts at the end of the year 2009:

Motijheel Branch:
Type of account Number of Total Amount
account
Al-Wadiah current deposit 830 5,57,87,310.29

Mudaraba savings deposit 1672 9,58,63,489.09

Mudaraba short-notice deposit 250 6,50,23,097.23

Mudaraba term deposit 326 75,65,92,310.01

Condition of the accounts at the beginning of the year 2009:
Motijheel Foreign Exchange branch

Type of account Number of Total Amount

account
Al-Wadiah current deposit 605 3,45,93,620.25

Mudaraba savings deposit 1106 6,01,28,358.35

Mudaraba short-notice deposit 190 5,69,72,950.10

Mudaraba term deposit 360 80,37,61,924.01

Condition of the accounts at the end of the year 2009:

Motijheel Foreign Exchange branch

Type of account Number of Total Amount

account
Al-Wadiah current deposit 710 3,51,69,580.32

Mudaraba savings deposit 1380 8,65,15,621.00

Mudaraba short-notice deposit 155 4,99,61,571.00

Mudaraba term deposit 328 76,28,34,680.58

 Account wise Arithmetic mean and Standard Deviation
Mitford branch
type of account A. mean Standard
deviation
Al-Wadiah current deposit 1025.301488 44.99899005

Mudaraba savings deposit 1317.775678 125.8775075

Mudaraba short-notice deposit 107.6225717 2.934689844

Mudaraba term deposit 370.5772296 99.55506716

Motijheel Branch:
type of account A. mean Standard
deviation
Al-Wadiah current deposit 772.0143507 69.38040809

Mudaraba savings deposit 1529.05072 160.8759462

Mudaraba short-notice deposit 230.2246774 20.96425923

Mudaraba term deposit 318.3996854 7.990009484

 Motijheel Foreign Exchange branch
Type of account A. mean Standard
deviation
Al-Wadiah current deposit 657.9334363 52.49821076

Mudaraba savings deposit 1267.651915 134.7638047

Mudaraba short-notice deposit 173.647423 17.46234292

Mudaraba term deposit 344.4179991 15.99453897

Branch wise Arithmetic mean and Standard Deviation:
Mitford branch

Type of account A. mean Standard

deviation
Al-Wadiah current deposit 55955420.86 3.609025201

Mudaraba savings deposit 62821383.49 5.011379232

Mudaraba short-notice deposit 38523480.94 4.900939757

Mudaraba term deposit 1102207818 6.333506343

 Motijheel Branch:

Type of account A.mean Standard

deviation
Al-Wadiah current deposit 47377415.4 4.925825887

Mudaraba savings deposit 85776434.67 5.016218394

Mudaraba short-notice deposit 61440038.79 4.522987518

Mudaraba term deposit 720591090.4 5.69680982

 Motijheel Foreign Exchange branch

type of A. mean Standard

account deviation
Al-Wadiah current 34881600.29 3.515088291

deposit

Mudaraba savings 73321989.68 5.152718707

deposit

Mudaraba short- 53467260.55 4.513124824

notice deposit

Mudaraba term 783298302.3 5.383915684

deposit

Conclusion:
Throughout the report we can find that SIBL has been providing
several account services as well as various deposit schemes to their clients. We
have also found from the data that they have been successful to attract
customers. If they employ more expert manpower they can expand their
business more quickly.