Posted on 26th Oct 2024 01:28:16 AM Marketing
Introduction
Social investment Bank LTD (SIBL) is a three dimensional banking model of 21st century which is a unique part in the field of private commercial banking system, by bringing human being and economics under the light of morality SIBL is firm determined to establish a sustainable, creative, caring society in the whole country. The main goal of this bank is to make a happy, enriched, and strong family society through all’s participation in creating social clarity using society’s money, unused assets and workforces in a production oriented management. To give this goal an organizational basis formal, non-formal and voluntary banking division is trying to provide the banking services from door to door. All the divisions of this bank have introduced social fellowship program for the mass people of the society
Social investment bank was incorporated under the companies Act, 1994, on the 22 November 1995. SIBL believes in togetherness with the society, its clients and others stakeholders, in its march on the road to growth and progress with service. As a commercial bank, SIBL will do all the traditional banking business including introducing of a wide range of savings an d credit products, retail banking and ancillary services with the support of modern technology and professional skills. On the other hand, it is determined to remove poverty through the participation of the mass people of the society in making the economic and banking system the undividable part of life.
Social Investment Bank commenced Non-formal and Voluntary banking operation specially cash WAQF program which in an exceptional step in the existing Islami Banking system. This Bank is interested in distributing loan and to continue banking program by following economic system and different ways of human development on the basis of interest free transactions, mutual participation and partnership in loss and income with human morality.
The Bank has a sound capital base, its Authorized Capital is Tk. 4000 million (2005) while its initial paid up capital is Tk. 226 milion subscribed by the sponsors. To solidify its capital base further, the paid up capital will raise to Tk 585 million (in 2005) within a reasonable period by public offering of shares of the company.
The SIBL has completed its successful existence on its carrier and reach on the 12th years of its operation. In this regard, not only the clients and entrepreneurs will be benefited but also innumerable poor people of the grass root level will be helped by the program of this unique banking model which is running toward by (a) real subjective welfare, (b) direct social advantages and (c) pure spiritual standard perspective.
In fine, SIBL will endeavor it’s best in consolidating social responsibility sector in helping growth and development of all the poor and rich people of the society, keep them safe and to assist them in leading a life peaceful through cresting opportunity of profitable investment for the economic development of Bangladesh.
Statement of the Problem
The continuing crisis of accumulation of non-performing and defaulted bank loans has emerged as one of the most serious constraints in the path of economic development of Bangladesh in the nineties as banking remains the main intermediary vehicle of harnessing invest able capital for accelerating the growth of the productive sectors in Bangladesh in the absence of a healthy capital market.
The commercial banks were involved in two sorts of pressure situations: On the one hand, the almost insatiable demand for credit from the loss-making state-owned enterprises kept the banks under constant pressure due to a shortage of adequate liquidity. On the other hand, the newly emerging so-called ‘briefcase-businessmen’ in connection with politics and politicians, top bureaucrats and top bankers, political functionaries themselves, and retired military and civil bureaucrats were constantly lobbying for accessing to bank credit, and, in the process, were vitiating the work-atmosphere in the banks by alluring a section of the bankers to indulge in corruption and malpractice’s. It is now widely recognized that today’s millionaires of Bangladesh came mostly from the ranks of those ‘briefcase-businessmen’ and the groups mentioned, who could successfully establish and maintain these types of patron-client relationship with the bankers, and in the process, created a host of millionaires from amongst those bankers themselves, who had actively connived and harvested the illicit ‘margins’ in exchange of the favors rationed out to those fortunate loaners.
Rationale of the Study
Commercial Banks in Bangladesh in general are suffering from chronic situation of default culture. SIBL is not an exception to this. Profitability and productivity are highly important for the survival of any bank. Various studies have been done but no such study is found. I was motivated to select this area through the scholastic suggestions of my honorable supervisor. This study may be helpful for the policy makers and other concerned authorities.
Objectives of the Study
The main objective of the study is to evaluate the effectiveness of lending program of SIBL for the period 2001 to 2006. To achieve this objective, the study seeks to realize the followings:
1. To examine the loans and advances of SIBL during 2001 to 2006
2. To assess the investment and recovery position of SIBL during 2001 to 2006
3. To evaluate the financial performance of SIBL during 2001 to 2006.
4. To find out problems and provide recommendations for the improvement of overall performance of the Bank.
Methodology of the Study
This report is based on two types of data i.e. primary data and secondary data. Maximum data were collected from secondary source and very few data are collected from primary sources. All statistical data and information were collected by visiting the branch and by interviewing face to face with the branch executive.
The study is mainly based on secondary sources of data and information collected from publications of SIBL such as annual reports, booklets & leaflets. I studied different books, journals, research reports to fill up knowledge gap.
Limitation of the Study
The study has suffered from a number of limitations like:
· Time constraints is one of the most important factors that languid the present study. Due to the time limitation many aspects could not be discussed in the present report.
· Another limitation in preparing this report is unavailability of data.
· Limitation of scope was another important point that was faced during execution of the study. Every organization has its own secrecy that is not revealed to others. While collecting data i.e., interviewing the employees, they did not disclose much information for the sake of the confidentiality of the organization.
The officers of SIBL were not eager to answer all questions. As a result, the collected data was not reach enough.
CONTENTS
CHAPTER-1 INTRODUCTION
Statement of the problem
Rational of the study
Objective of the study
Methodology of the study
Limitation of the study
CHAPTER-2 AN OVERVIEW OF SIBL
Objectives of SIBL
Mission of SIBL
Nature of services and scope of SIBL
Policies of SIBL
On-line banking facilities
Branches network of SIBL
Zone-wise division of SIBL
Shariah board
Present board of directors
List of employees of SIBL Rajshahi branch
Highlights on the overall activities of the bank for the year 2005 and 2004
CHAPTER-3 INVESTMENT OF SIBL
SECTION: ONE
Introduction
Modes of investment
Procedure of investment
SECTION: TWO
Credit (investment) department
Letter of credit
SECTION: THREE
Sources of the fund
SECTION: FOUR
Investment disbursement
SECTION: FIVE
Investment recovery
CHAPTER-4 ANALYSIS OF FINANCIAL STATEMENTS
CHAPTER-5 MAJOR FINDINGS, RECOMMENDATIONS AND CONCLUSION
Findings
Recommendations
Conclusion
Bibliography
Internship, Report, Analysis, Loan, Disbursement, Recovery, Problems, Social, Limited, SIBL, PLC, Investment, Bank, Rajshahi, Branch, Bangladesh
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