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I have completed my six weeks internship in Emirates Global Islamic Bank Limited Arifwala. I tried my best to gain practical knowledge from this opportunity. My report starts with the first chapter History of Banking in Pakistan second chapter History of Emirates Global Islamic Bank Limited third chapter Board of Directors. Bank Vision & Mission statement shows the focus of bank, the overall scope and the reason of existence. The objective is to overcome and take advantage from the opportunities that are found in the market and the opportunities that happen to come in existence due to the mistakes of competitors in the market, realize the real importance of customer the main objective is to achieve customization through Islamic Banking.
HISTORY OF BANKING IN PAKISTAN
Immediately prior to independence, or advent of Pakistan, the areas that were to form Pakistan had a very limited role of banking and industries, as far as Muslims Were concerned. There was only one very small bank, Australian bank in Lahore, with a very few branches in the areas around Lahore. It was established in 1942, in the garage of the houses of a businessman, who had some trade with Australia and some real estate in Lahore, besides other business interest. However, there was one bank owned and operated by Muslims in Bombay. This was Habib bank limited established in 1941. The Quaid wished that there should be one more Muslim bank located in Kolkata. Thus, Muslim commercial bank was established in Kolkata, a few months before independence, under the ownership of Adamjees and some seaport from lspahanis. Habib bank, which already had some branches in Pakistan, moved its head office to Karachi. Muslim commercial bank also moved its head office first to Decca and then to Karachi. Another, bank of Bahawalpur, was started in December 1947 in Bahawalpur State in West Pakistan. Before independence most of the banking were British banks, other were Indian. The oldest was chartered bank operating since 1863, and the other was Grind lays bank. The later acquired and absorbed many other banks. Among the Indian banks, the largest bank, with the largest numbers branches, was imperial bank of India, established in 1919, which handled central banking functions besides commercial banking, until a full fledged central bank viz. reserve bank of India was established in 1935. However, imperial bank continued to work as a supplement to central bank because it had a very large number of branches. There were many small banks, owned by non-Muslims in the areas that constituted Pakistan. They quickly moved head offices and branches to India. This tendency was so evident that number of banking offices declined from 631 to 195 between august 14, 1947 and June 30, 1948, another important landmark was the creation of large commercial bank, on the lines of, to supplement the State Bank.
HISTORICAL BACKGROUND OF EMIRATES GLOBAL ISLAMIC BANK
HISTORICAL BACKGROUND OF EMIRATES GLOBAL ISLAMIC BANK
Alhamdolillah, Emirates Global Islamic Bank Limited (EGIBL), a dedicated Islamic Commercial Bank, commenced operations in February 2007. The bank has a network of branches operating across all four provinces in urban and rural areas of Pakistan.
Incorporated in Pakistan and sponsored by leading investors from the United Arab Emirates and Saudi Arabia, EGIBL is a major player in the rapidly growing Islamic banking industry, offering Riba-free yet highly competitive banking products, based on the teachings of the Quran and Sunnah.
EGIBL believes in making a positive contribution to society by continuously striving to provide Halal alternatives to conventional banking products, complemented with superior service and cutting-edge technology.
BOARD OF DIRECTORS
BOARD OF DIRECTORS
His Excellency, Sheikh Tariq Bin Faisal Al Qassemi, Chairman
Syed Tariq Husain, President & Chief Executive Officer
Mr. Abdul Ghaffar Fancy, Director
Mr. Riyadh Muhammad Saeed Al Birdisi, Director
Mr. Raza Jafar Ali, Director
Mr. Ayham AL Yousuf, Director
Mr. Rudecindo Roca, Director
"To become a recognized and highly respected Islamic commercial bank offering a wide range of Shariah compliant products and services to a cross-section of society, achieved by adhering to stated values of innovation, integrity, dedication and service quality."
3.2 MISSION STATEMENT
"Provide quality and efficient Shariah compliant financial products and services to customers all over the country through an expanding branch network, staffed by motivated professionals and powered by state of the art technology".
4.1 ORGANIZATIONAL STRUCTURE / ORGANIZATIONAL CHART
4.2 BRANCH HIERARCHY OF EGIBL IN ARIFWALA
Operation Manager (Officiating Manager)
(Asif Shabeer Ghouri)
Customer Relationship Department
BUSINESS PROCESS ANALYSIS
BUSINESS PROCESS ANALYSIS
During my internship I work with all the departments of Emirates Global Islamic Bank Limited Arifwala.
Emirates Global Islamic Bank Limited
Islamic Banking & Auto Finance
Number of Employees:
47-D Zain Palace, Thana Bazar Arifwala
Now we see the functions of each department working at each branch of Emirates Global Islamic Bank Limited of Pakistan.
5.1.1 ACCOUNT OPENING DEPARTMENT
Types of Accounts:
Depositors can open the following types of accounts with the Emirates Global Islamic Bank Limited of Pakistan:-
Islamic Term Deposit
MPPA Account (Mudarabah Premium Plus Account)
BBA Account (Basic Banking Account)
Foreign Currency Account
A brief introduction of these accounts is given below.
Current account at EGIBL is a best available option to deal with your day to day business and personal banking needs with convenience and reliability. It is a key to let you withdraw and deposit as many time as you want.
Islamic working principle - difference from similar conventional product
Emirates Global current account is based on Islamic principles of Qarz (loan) whereby the customer is the lender and the bank is the borrower. These funds are invested with utmost care in Halal business ventures only. The funds are payable to the customer on demand as and when required with neither any addition nor penalty. We at Emirates Global fulfill our responsibility of ensuring that your hard earned money remains Riba-free and you enjoy complete peace of mind.
Fees and charges will be levied according to the prevailing Schedule of Bank Charges, whereas taxes and Zakat will be applicable according to Government regulations and directives of State Bank of Pakistan.
Our Savings account Mudarabah comprises of all facets of an investment namely income, security and growth. Profit is calculated on monthly average basis and distributed on a monthly basis. So, if you are an individual (student, employed or run own business) or a business entity, contact us today and speak to one of our dedicated Relationship Managers for further details.
Islamic working principle - difference from similar conventional product
The Emirates Global saving account is based on the Islamic concept of Mudarabah (Partnership). Under this arrangement the customer is the Rab-ul-maal (Investor) and the bank is the Mudarib (Fund manager). The deposit will be invested in profitable business ventures which are legal and Shariah compliant. The profit/loss will be shared as per a pre determined ratio. As fund manager the bank will be entitled to a part of the profit, whereas profit distribution amongst the depositors and the shareholders will be made according to the weightages assigned at the beginning of each month to their investments. Through this profitable partnership you can enjoy halal profits on your savings.
Mudarab Premium plus Account:
Are you serious about savings? Are you looking for higher profits? If you have answered 'yes' to these questions then this account is for you. Our Mudarabah Premium plus Account is only available in Pak Rupees where the profit is calculated on a daily basis and distributed on a monthly basis.
Islamic Term Deposit Account:
EGIBL Mudarabah Term Deposit is a suitable solution for customers seeking a regular income. It is the best tool for securing your future. Consult our Relationship Managers to assist you in designing an investment plan for you.
Basic Banking Account:
In compliance with BPD Circular No. 30 of November 29, 2005, EGIBL also offers the Basic Banking Account to its depositors.Â This facility is targeted towards providing an affordable banking service to customers who are unable to maintain a high balance requirement.
5.1.2 FINANCE DEPARTMENT
At EGIBL, we remain devoted to providing you with a range of Shariah compliant yet highly competitive products to offer you halal alternatives to conventional banking. We continuously strive to ensure that your financial dealings are free from Riba (interest).
A wide range of tailor made financing facilities are on offer to suite the needs of SME and Corporate Banking customers. Under the supervision of our Shariah Committee our dedicated Relationship Managers will provide you halal solutions to fulfill your business needs. Our financing products presently on offer are based on the principles of Murabaha and Ijarah and will cater to your financing requirements related to working capital, trade and purchase of machinery and equipment. It is our commitment to put your values foremost, hence providing you with banking solutions that are in line with your beliefs.
Local Purchase Murabaha
Murabaha financing against Imported Merchandise (FIM)
Murabaha financing against Trust Receipt (MTR)
Export Murabaha (Pre-shipment)
Sale and lease back Ijarah
Emirates Global offers non stop branch banking from 9am to 5:30 pm with personalized attention (Excluding Friday & Saturday)
The spectrum of activities under the umbrella of investment banking at EGIBL offers Advisory, Asset and Investment Management services. Our investment banking team strives to understand customer's needs and build comprehensive and innovative Shariah compliant solutions which cater to the client's unique business requirements.
5.1.3 CASH DEPARTMENT
The cash department is that through which all the receipts and payments of bank are made. Also the bank's cash record remains with this department. There are two types of books used in this department.
Cash Receipts Book.
Cash Payment Book.
Cash Receipt Book:
In which the cashier records the entry when some one comes to deposit some amount. The client's pay in slips and the cashier the amount according to the pay in slip, sort outs the notes, puts a signature, stamps it and record in his book. After stamping the slip the cashier returns the pay in slip to the customer. Then customer goes to the another bank officer, he again record this voucher into his cash scroll and returns one part of the pay in slip to the customer and keeps the other part for the record.
Cash Payment Book:
When some client comes to the branch to withdraw some amount from the account, after getting the token from deposit section he goes to the cashier, cashier checks his token and cheque which is referred to him from deposit section. The cashier makes to him required payment and receives the token from the customer. After recording all the cheques in his book he returned the cheques in to the deposit section.
The following are the common books, which are maintained in any branch of EGIBL.
The sole purpose of the cashbook is to record the total transactions done in each type of account daily. The closing balance of cash is also included in the cashbook. It is maintained with the help of various types of vouchers and daybooks.
These vouchers and day books of different heads are as follows:
Payment order vouchers.
Term deposit vouchers.
Call deposit vouchers.
Cash finance day books.
Running finance day books.
Demand finance day books.
Foreign exchange day books.
With the help of these vouchers various types of registers are maintained to record daily transactions done in various accounts.
These registers are:-
Daily transaction report of PLS/ Current account.
Emirates Global Islamic Bank Limited accepts the following types of utility bills:
Sui Gas Bills
5.1.4 OPERATION DEPARTMENT
In Emirates Global Islamic Bank Limited establishment department works for the maintenance of different type of the expenses and for the provision of funds for different activities in the branch. The manager of this department has two types of register.
Charges account register.
Suspense accounts register.
Charges Account Register:
In the charges account register following accounts are maintained:
This account deals with the salaries of the employees within that branch when bank have to pay the salary of any employee the amount of salary is debited to the charges account.
Under this head different allowances are paid to employees. But these are attached with salary and paid with the salary.
It is deduction from the employee's salaries, which is paid out at his retirement.
When some employees suffer from any disease the bank allocate fund for him and this amount is debited to charges account of the patient.
Honorarium to staff:
Those types of funds, which are not part of salary, like bonus profit.
To improve the efficiency, the bank provides some special facilities and the fund is provided from the welfare account. These fund are similar to honorarium fund.
When the efficiency of employees increases and bank earn profit more then expectation then bank gives extra bonus to the employees. The provision of bonus is done through bonus account by debiting to the charges account.
If the bank needs some uniform for some employees like messengers, the funds are provided from liveries account.
When, some employee needs some advance amount for them. He can withdraw that amount from suspense account, which is then adjusted, from his salary account. But the bank provides funds in advance within some limits under this account.
5.1.5 REMITTANCE DEPARTMENT
Remittance is a major function of the bank. It is the transfer of money from one place to another place. The need for remittance is commonly felt in commercial life particularly and in everyday life generally. By proving this service to the
customers the Emirates Global Islamic Bank Limited earns a lot of income in the form of service charges.
Emirates Global Islamic Bank Limited of Pakistan deals with the following type of remittances:
Demand Draft (DD)
Mail Transfer (MT)
Telegraphic Transfer (TT)
Pay Order (PO)
Demand Draft (DD):
Demand draft is a written order given by the one branch of a bank on behalf of customer to another branch of the same bank to a certain amount to the certain person.
Mail Transfer (MT):
It is the transfer of money from one branch to another branch of the same bank through mail service. In mail transfer there is no need of advice as the amount is directly credited to the receiver's account.
Telegraphic Transfer (TT):
This is the most urgent method of remitting the money from one place to another place. This method is used when the sender desires to send urgently, in this case the sender request the manager of the branch to issue TT. Now this facility is not in use.
Pay Order (PO):
A pay order is a written order issued by the bank no its own branch, drawn upon and payable by itself to pay a specified sum of money to the person. The purpose of a pay order is to transfer the fund from one place to another. It is usually not issued in favor of the parties of other cities. Usually the pay order is issued for the local transfer of money from one person to another or from the person to any other
Department it is used for different purposes. The purpose may be the repairs of the branch or renovation of the branch.
5.1.6 FOREIGN EXCHANGE DEPARTMENT
It is the function to deal with customer in foreign currency. Only few branches of EGIBL are allowed to deal in the currency other Pak rupee Arifwala branch is also dealing in the foreign exchange.
It is most important for any organization to know about its internal and external environment. For environmental analysis we use SWOT analysis. SWOT analysis provides complete information about company's internal conditions and external factors like, markets, competitors, law & order, political and legal issues. SWOT analysis includes the analysis of companies' strengths and weaknesses in internal environment and opportunities and threats in external environment.
Investments are made in the businesses that are feasible in accordance with the principle of Islam.
EGIBL is the Islamic Bank that is why people have full trust on it.
EGIBL is the first bank in Pakistan that provides an environment of centralized bank in all over the PAKISTAN, and is the leading institution in using the latest technology.
Emirates Global Islamic Bank Limited has advantage of the deposits of government's institutions e.g. Sui gas and WAPDA.
EGIBL has the separate agriculture division for agricultural loan. This division has its own finance secretary for operating this division. This function becomes the major source of income of EGIBL. Only EGIBL is providing this facility all over the Pakistan like other banks.
Emirates Global Islamic Bank Limited of Pakistan is also operating foreign branches.
The bank has also the comparatively enough deposits all over the country.
Emirates Global Islamic Bank Limited of Pakistan is providing different types of loans with no Mark-up bases to its employees. I.e. Car Loan, Motorcycle Loan, Computer Loan, House Building Loan etc.
Emirates Global Islamic Bank Limited of Pakistan has the safe advances which increase the profitability of the bank.
Being the Islamic bank there are less chances of defaulter.
The very first weakness of the bank is the centralized banking due to which the working of the entire staff suffer badly
The other weakness of EGIBL is that the staff is not competent to tackle and handle the modern technology available and the employees are only less experienced also, they have lack of skills. Have not the relevant knowledge of banking business, education and professional skills. Banking is experienced just book keeping only.
Working conditions are good but are not conducing to do work.
Environment is unsophisticated and casual.
Employees are not hard working and have no interest in their work.
Employee behavior is somewhat indifferent with customers.
Customers are not being patronizing the bank due to the fact of new establishment of EGIBL in Arifwala.
Work procedures are time consuming and slow.
Generally, the attitudes of the employees are not serious with each other and have professional jealousy which is not healthy for the bank.
Being a Islamic Bank, Emirates Global Islamic Bank Limited of Pakistan has to face many policies by the government.
Lake of sophisticated knowledge about computerized techniques that are emerging in Pakistan e.g. concept of online banking.
Being Islamic Bank, Emirates Global Islamic Bank Limited of Pakistan has to face many policies by the government.
Excessive rules and regulation for doing the every bit work is not good to stay competitive in the banking business.
EGIBL must develop the capabilities to provide service with minimum hustle to be faced by the customers.
EGIBL must develop its human resource section in each branch. It must be regulated and commence working of creating awareness among people of banking.
EGIBL should concentrate more industrial sector and agriculture sector. They should provide finances to the farmers both on short term and long term basis.
The bank by establishing new branches in the foreign countries can expand its business and earn more foreign exchange.
EGIBL can diversify its funding base and earn foreign exchange by investing into capital markets of other countries.
New schemes for deposits and finances should be introduced regularly.
Proper advertising of the products of the bank.
With the passage of time the other banks are introducing efficient information technology sections & computer networks. Use of the modern technology is modern technology is common in EGIBL as compared to the other banks. But the people here are having little familiarity with the modern financial software's available to the individuals or workers at the bank. So there may be a time come when those banks would snatch the market share of EGIBL who are mostly effectively dealing with the modern financial software.
Being the new bank it is often seen that the employees are not so much efficient and hard working. When employees of some organization are not so much hard working ultimately that organization will remain behind the competitors.
Employees are involving so much in internal politics & lobbies among them, which disturb working conditions & goodwill of the bank.
Lack of customization.
The competent employee of EGIBL may move to other banks, as the pay in EGIBL is less than the remuneration offered by other banks.
The number of banks increasing in Pakistan day by day and they are provided good customer services as compared with the EGIBL, so it may lose its market share in the future.
6.2 MARKETING STRATEGY
Emirates Global Islamic Bank Limited launches 'Sarparast Family Takaful Plan' with Pak-Qatar Takaful. Emirates Global Islamic Bank Limited also introduces many other products time to time like Albait, Auto Ijarah, Rahnuma Travel Services and Sarparast. These Products makes it differ from other banks.
6.3 COMPETITIVE STRATEGY
Emirates Global Islamic bank Limited offering Riba-free which is highly competitive strategy between other banks. The Emirates Global Auto Ijarah is a Shariah compliant auto finance product. EGIBL is the one of the Islamic banks in Pakistan with such services in the market.
LEARNING AS A STUDENT INTERN
LEARNING AS A STUDENT INTERN
I had passed a good time in Emirates Global Islamic Bank Limited as an intern. There was a lot for me to learn.
I was assigned under supervision of Mr. Jalal Waris. My duty was to search and learn the overall working criteria of organization.
I successfully carried out my work and observe nature of working and learn how it should be. I got awareness about all departments in organization and learn their duties.
7.3 NEW KNOWLEDGE ACQUIRED
During my internship, beside completion of my internship, I learnt how credit is offered, how customers are captured, about the cash transaction round the country. I also got knowledge about different accounts and their procedure for opening. I work with every department of EGIBL that's the reason I learn lot of knowledge from my internship.
7.4 PROBLEMS ENCOUNTERED
During my training at EGIBL I observed some areas that need attention of the management like:
There are a disproportionate number of seasoned bankers in the top management who have the responsibility of making strategic decisions. This think tank should also include a reasonable proportion of young bankers whose mindsets teem with new creative ideas, which might prove to be invaluable for Emirates Global Islamic Bank Limited. The top management should immediately start thinking in terms of rotating the employees in various departments, as this transforms work force into human capital.
7.5 HOW INTERNSHIP WILL IMPACT MY CAREER
This internship at Emirates Global Islamic Bank Limited will prove very important for me during my professional career. Because it was my first learning experience for working in an organization. It will be very helpful for me to show discipline, hard working and how work is done in any organization. No doubt it will prove a bright sign in my future.
During my internship in Emirates Global Islamic Bank Limited I have learned a lot and my vision and practical exposure has broadened very much from my six weeks internship, concluded that banking sector is providing a valuable infrastructure for the facilitation of whole community and for the acceleration of economic activities. In the banking sector, EGIBL is contributing a lot at national. The use of IT has opened new horizons for the banking industry and has changed the business scenario to a large extent.
Further, I also concluded that present concentration, full care, analytical, descriptive and communication skills and accounts related knowledge are the key prerequisites for working in banking industry as the banking universe revolves around the digits.
Anyhow, precisely speaking this internship of six weeks is memorable period for me during which I availed the opportunity to flourish my communication skills, polish my capabilities and abilities, upgrade my knowledge about banking sector and broaden my vision and exposure towards practical life.
Jargons or acronyms
EGIBL (Emirates Global Islamic Bank Limited)
MPPA (Mudaraba Premium Plus Account)
DD (Demand draft)
PO (Pay order)
MT (Mail Transfer)
TT (Telegraphic Transfer)
S.S Card Â Â Â Â (Signature Specimen Card)
SBP (State Bank of Pakistan)
CRO (Customer Relationship Officer)