Aib Report
Aib Report
Aib Report
SUBMITTED BY:
ASMA SHAHEEN
(ROLL NO: 070004)
BBA-8
SUBMISSION DATE:
23-05-2011
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Acknowledgement
Countless thanks to Almighty Allah (the most merciful the beneficial). The Only creator of
Universe who enabled me to complete this report, in spite of various difficulties. All respects
to the Holy Prophet (S.A.W.S) who enable us to recognize our creator and whose spiritual
teaching guides us in every matter of the life.
I would like to thank the branch manager Al-baraka bank Mr.Faisal as he gave me the
opportunity to work in Al-baraka bank. I would like to thank all the officers of the bank for
being so kind and supportive.
I would like to thank Sir Zeeshan abbasi for being so kind in giving us enough time to
complete the report.
Last but not the least I would like to thank my friends for supporting me and helping me in
making this report.
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TABLE OF CONTENTS
EXECUTIVE SUMMARY………………………………………....…………………...5
ORGANIZATIONAL STRUCTURE..............................................................................9
INTERNSHIP EXPERIENCE.......................................................................................11
RECOMMENDATION ..................................................................................................18
BIBILIOGRAPHY..........................................................................................................21
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Executive Summary
This report is about my internship that I have undergone at Al-baraka Islamic bank wah cantt.
During my internship I am able to learn practical aspects of banking business and get good
working experience. As at branch level in banks there is no proper Human resource
department so I had to work in accounts and credit department and I had spent a few days in
other departments of the bank.
Although it was not entirely related to my field of specialization but it was quiet helpful to
gain practical knowledge of business and how to deal with the customers.
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AL-BARAKA ISLAMIC BANK
Background :
For the fist time banking system was started in 2000 B.C. In these Greek banking
institutions were popular, with the passage of time the need was felt to establish
banks and so in the middle of 12th century banks were established at Venice and
Geneva. The origin of modern banking started in Europe in the 14th century.
Internship at banks has almost become a cliché. Over the past decade trend has been
established by the business and public administration students regarding internships at
banks. Thus it can be very convenient for anybody to view this repot as any other
report on any other bank. This misconception has been the biggest challenge and
motivating force to take up this study. My efforts have been directed at maintaining a
qualitative difference from a routine study.
The picture of the banking sector in Pakistan is not a rosy one like the overall
economy. There have several intermittent socio-political crises over the past few
years. Banks in general have had to ear the brunt of the follies of politicians and
economic managers of our country. Banks have been largely used as an instrument of
manipulation rather than as a tool for financial stabilization. The liquidity crunch of
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our banks has been a direct consequence of loan defaults by the high ad might of our
society.
These rough conditions provide me with an excellent opportunity to explore the path
to survival for a financial institution while all the others around it are falling like
ninepins. The study is particularly aimed at the contributions of AIB to an unstable
economy and at the urgent need of whole scale rationalized reforms.
Purpose of Study
Prime objective of the study is to accelerate knowledge, developing, technical skill,
producing professional attitude modifying behavior as well as to enhance practical
knowledge in the bank.
Foremost stress has been placed to reduce practical & theoretical gap of the study.
Key focus has been placed to appreciate technical concepts involved in the banking
practice. However, it is difficult to ensure complete command & excess over the bank
field as it is changing speedily with the passage of time.
Scope of Study
This report explains the operations of only one of the branch of AIB, which is AIB
branch, located at The Mall, Wah Cantt. This study will help AIB management to
identify their strengths, weaknesses, opportunities and threats for future strategic
direction.
Limitation of Study
Due to the narrow time span 42 days it is not possible to cover each area of the bank
for the purpose of study. Moreover, bank field is so vast that requires a long
commitment & devotion for thorough learning.
Methodology of Report
The report is aimed at two levels, the first at the branch level and the second for the
organization as whole. No secondary data is available at the branch level, Hence all
the observation of the report are result of primary data gathered from he bank from
the following sources.
The secondary data is collected from the following sources:
1 Personal observations
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2 Brochures
3 Review of annual report 2007– 2008
4 Bank manuals
5 Journals & newspapers
6 Internet
INTRODUCTION TO AIB
AlBaraka Islamic Bank (AIB) is a member of Albaraka Banking Group (ABG) which
is a Bahraini Joint Stock Company listed on Bahrain and Dubai stock exchanges and
one of the well-known leading international Islamic banks. ABG is committed to
expanding its presence in Pakistan, which is evident from the rapid growth being
undertaken by AlBaraka Islamic Bank in the country and its plans to have its Pakistan
operations localized as a Bank registered in Pakistan, over the next few weeks.
Building on the expertise and experience of its workforce and the growing awareness
of Shari’ah-compliant banking solutions among the masses, AIB has successfully
developed itself as a major unit of ABG operating in the region, capitalizing on the
Group’s geographical presence and high quality research and development in Islamic
financial products for its business expansion in the country. Faced with growing
challenges in this rapidly developing market, AIB strongly relies on its ability to be
an effective and efficient market player through renewed focus on superior customer
service, development of Islamic alternatives to conventional financing facilities, and
strict adherence to Shari’ah rulings and principles.
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Islamic Bank / Pakistan, Banque Al Baraka D'Algerie/ Algeria, Al Baraka Bank
Sudan/Sudan, Al Baraka Bank Ltd / South Africa, Al Baraka Bank Lebanon/Lebanon,
Bank Et-Tamweel Al- Tunisi Al Saudi/ Tunisia, The Egyptian Saudi Finance
Bank/Egypt, Al Baraka Turk Participation Bank/Turkey, Albaraka Bank Syria (under
establishment), and representative office, Indonesia.
Subsidiary Banking Units of ABG
ORGANIZATION STRUCTURE
BOARD OF DIRECTORS
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• Mr. Othman Ahmed Sulaiman, Member
• Mr. Ashraf Alghamrawi, Member
• Mr. Abdul Latif Janahi, Member
• Mr. Mousa Abdul Aziz Shehada, Member
• Mr. Mohamed Isa Al Mutaweh, Member
EXECUTIVE COMMITTEE
AUDIT COMMITTEE
MANAGEMENT BAHRAIN
• Muhammad Al Mutaweh
General Manager
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• Tariq Mahmood Kazim
Deputy General Manager
MISSION :
To be the Leading Islamic Banking Group with a World Wide Presence, Offering; Retail,
Commercial, Investment Banking, and Treasury Services Strictly in Accordance with the
Principles of Sharia.
During my internship I performed different task in different department which are as follows:
Having an experience of a reputed organization has one huge advantage, it makes you more
professional and professionalism is the key to success. I have learned a lot during my
internship. Working in AIB Bank gave an opportunity to relate my studies with the practical
work. I have learned that how the bank perform the financial analysis of the companies. I
also came to know what aspects the bank considers while giving loans to the companies. This
internship will help me a lot because the tasks given to me are related to my studies and it
will also help me in my professional life.
Weekly learning
Week one:
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The first week of my internship is related to the orientation. I was given the introduction of
the bank and the brief history of the bank. After this the respected boss gave me the
introduction of the different departments working in the bank. He told me functions of every
department.
Accounts Department
In week two I joined Ma’am Farwah (Accounts Officer) and I stayed in accounts department
for two weeks. First of all she gave me the introduction of the accounts department and then
she told me about the different activities accounts department had to perform.
* Vouchers batch
* Reporting
* Miscellaneous functions
Accounts Department:
Account department is responsible for budgeting and account opening all the transaction that
are take place in the bank and their physical prove are match to the computer generated
report and save it as a physical that these transaction are take place in the bank. Secondly
account is responsible for budgeting and also record daily expense incurred by the bank.
Account department work as a backbone of the organization this department directly reports
the operational manger and vice president preparing the bank’s annual accounts and
coordinating external audit is also a direct function of the finance division.
What I learned:
I learned about the sorting of vouchers in ascending order and according to the title of the
voucher and than I had to match it with computer generated report of accounts number to
make it more safe and risk free. This is called daily activity checking.
Budgeting:
She told me about the budgeting that the accounts department of a bank, for a year makes
budget of every branch. Fiscal year of bank starts from January 01 and ends on December 31.
The accounts department starts preparing budget from October for the next year.
Voucher batch:
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The voucher batch mean the all kind of vouchers will be sorted as batch wise for example
current a/c voucher makes sprit batch saving a/c batch sprit and in the same way third batch
Mise a/c and general ledger a/c voucher makes sprit batches maintained date wise for record
of the bank.
Reporting:
The accounts department, in the form of reports, clubs the details of various departments
together. Each and every minute detail is provided in weekly, monthly and annual reports.
The reports are submitted to head office, SBP and to the government.
The accounts department prepares many reports, of which the most common are:-
* Statement Of Affairs
* Business Report
* SBP Report
Accounts department maintains the record of all the assets and charges depreciation on them.
The bank normally uses the straight-line method to compute the depreciation.
It is calculated on monthly basis and charged yearly. Bank not only depreciates the existing
assets but also the assets but also the assets transferred in and transferred out.
Miscellaneous Functions:
The accounts department also performs some other miscellaneous functions like
Closing Entries
Report Generation
Credit department:
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In week four I joined Mr.shahid (Credit Officer). I stayed in credit department for two weeks.
Initially I was given the introduction about the credit department. Mr.shahid told me about
the different activities and functions of the credit department. As par sensitivity of the credit
department I wasn’t given any special task to do but I got to see the financial statements of
the bank and ratio analysis etc of the bank.
To give credit is to finance directly or indirectly the expenditure of others against future
payment. Lending or financing is one of the basic functions of banks of all categories,
through which they gain major part of their profits. A bank accepts deposits of money and
repays cash to its depositors on demand. But this is not to say that; bank gives this service for
nothing. Bank borrows money at a lesser rate of interest and lends to the borrower at higher
rate of interest. And the difference between these two is the profit of the bank. Maximum
loan limit is seven billion.
Week six:
In week six I gathered information about the other departments of the banks like service
customer services.I ask about what kind of activities and tasks they performed.
* Account Opening
HR Policies, An overview
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Attracting and retaining quality people and motivating them to peak performance, are
now the buzz words in corporate boardrooms and corridors as every organization
competes for scarce talent. Regardless of size, spread, nature of business and
geographical location, investment in human capital, is by far the most promising and
rewarding avenue for modern day entrepreneurs.
Al – Baraka Islamic bank has an existing Human Resource development department,
which operates to increase the existing skills of the people existing or coming in the
organization, in order to achieve its objectives in a more efficient manner.
AIB has devised two basic training techniques.
• First is related to the training and development of mid term plan, regarding new
clients & middle level employees.
• Secondly, the training & development for long term plan, regarding the career
development.
• AIB applies on-job and off-job strategies to train its employees (middle & higher
level).
• AIB training & development academy advises
• Job rotation to ensure & facilitate the producing of all rounder.
Companies are faced with the daunting task of adopting a harmonious approach to
people management on a global basis while respecting domestic and regional
sensitivities. Acquisitions, mergers, and other forms of corporate restructuring and
privatization inject new imperatives in human resource management prompted by the
need for relocation and the shifting and creation of new job responsibilities.
Availability of documented human resources policies and procedures facilitates the
discharge of the HR function in an organization and serves as an important and useful
tool in ensuring the presence of an effective HR culture but as for as Al-Baraka
Islamic bank policy is concerned there is no well documented open to the public,
often consultants are hired in determining their needs in this regard, and they help
them to formulate and compile prescribed policy and procedures adapted to their
specific needs.
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SWOT Analysis of AIB
SWOT stands for Strength, Weaknesses, Opportunities and Threats. SWOT is useful
tool for providing a framework for analysis of an organization. It is widespread
approach to make assessments in terms of internal and external environment of the
organization and to formulate strategies by analyzing its internal strengths and
weaknesses, external opportunities and threats.
SWOT analysis for Al – Baraka Islamic Bank is as follow:
STRENGTHS
WEAKNESSES
It has been found that in the organization under consideration, if new vacancies are
allocated there is a trend of external recruitment, which results in the dissatisfaction
of the current employees.
6. Lack of Marketing Effort
The bank does not promote its corporate image, services, etc on a competitive way.
Hence lacks far behind in marketing effort. A need for aggressive marketing is there
in the era marketing in now becoming a part of every organization.
OPPORTUNITIES
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professionals. So, the organization under consideration can hire more qualified people
from market.
THREATS
1. Increase in Competition
The increasing competition in local as well as national and multinational level also
lower down the profitability of the bank and compelling the bank to use a large
amount of funds to meet out competition.
Conclusion
After observing this AIB very closely and its HR department in particular,
following outcomes have been concluded.
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• Banking is the business that is directly related to general public and an
employee can be judged by the appraisal from customer. This practice will
increase the accuracy of performance check as well will improve the behaviour
of employees with general public
• Though there is training department in head office, but the training programs are
usually confined to the managerial staff, there is a need of training at all the
levels.
• There are no sub divisions at the provincial or branch level. So when different
problems related to HR are raised, they are left unaddressed.
• If new vacancies are allocated in the organization they are filled through
external recruitment. Internal expirees should be utilized and should be
considered for new posts.
• If above mentioned recommendations are properly taken into account this can
help prevent wastage of time, resources, professional potential and can increase
the organization’s performance and goodwill.
Recommendations
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References
Hussain, S; Rana, K & Shabbir, A (1991); Banking Currency and Finance, Lahore:
Ilmi Kutab Khana.
www.ibp.org.pk
www.albaraka.com.pk
www.abg.bh/English/home2.html
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AIB Organizational structure
President Secretariat
Board of Director
Secretariat
Operations Group
Compliance Group
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ATM Application Form
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Account Opening Form
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Account Opening Form
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Al-Baraka ‘Murabha Islamic Investment Account’ Form
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Credit Rating
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