A Report On

E-Banking Mechanism of Islami Bank Bangladesh PLC (IBBPLC)

By

Ayesha Afrin Amina Anika

19304078

An internship report submitted to the BRAC Business School in partial fulfilment of

the requirements for the degree of Bachelor of Business Administration (BBA)

BRAC Business School

BRAC University
July, 2024

©2024. BRAC University

All rights reserved.
 Declaration

It is hereby declared that -

1. The internship report submitted is my/our own original work while completing degree at

BRAC University.

2. The report does not contain material previously published or written by a third party, except

where this is appropriately cited through full and accurate referencing.

3. The report does not contain material which has been accepted, or submitted, for any other

degree or diploma at a university or other institution.

4. I/We have acknowledged all main sources of help.

Student’s Full Name & Signature:

___________________________________________
Ayesha Afrin Amina Anika
19304078
BRAC Business School

Supervisor’s Full Name & Signature:

___________________________________________
Mr. Shihab Kabir Shuvo
Senior Lecturer, BRAC Business School
BRAC University

i
 Letter of Transmittal

Mr. Shihab Kabir Shuvo

Senior Lecturer
BRAC Business School
BRAC University
Kha 224 Bir Uttam Rafiqul Islam Avenue, Merul Badda, Dhaka 1212

Subject: Regarding Internship Report Submission

Dear Sir,

I am elated and honoured to present the enclosed report titled “E-Banking mechanism of Islami
Bank Bangladesh PLC” as a part of the fulfilment of the requirements for the completion of
my BBA program. This report is an outcome of the internship program that I was involved in
for three months at Islami Bank Bangladesh PLC. I have put my utmost efforts and worked
really hard to prepare this paper, making sure to include every relevant point relevant to the
selected topic. I endeavoured to effectively and efficiently portray the initial circumstances of
Islami Bank Bangladesh PLC’s E-Banking System and Marketing Practices.

I expect and hope this internship report will meet your expectations as I have utilized my
learnings and followed the instructions properly while preparing the report. Therefore, it would
be my immense pleasure if you accept my internship report and give your constructive
feedback.

Sincerely yours,

_______________________
Ayesha Afrin Amina Anika
19304078
BRAC Business School
BRAC University
Date: July, 2024

ii
 Non-Disclosure Agreement

This agreement is made and entered into by and between Islami bank Bangladesh PLC and the
undersigned student at BRAC University, Ayesha Afrin Amina Anika (ID – 19304078).

___________________________________________
Islami Bank Bangladesh PLC

___________________________________________
Ayesha Afrin Amina Anika

iii
 Acknowledgement

In the name of Allah SWT, I would like to express my deep gratitude to the Almighty Allah,
without whom and his profound guidance I would not be able to come this far and complete
my internship safe and sound; as well as able to be prepared my report on time.

I take the opportunity to express my sincere sense of gratitude of my university supervisor, Mr.
Shihab Kabir Shuvo, Senior Lecturer at BRAC Business School of BRAC University, who
supervised my entire internship period, gave me guidance, instructions and helped me attain
my objectives; that has greatly inspired me in preparing this report successfully.

Additionally, I am extremely grateful to Md. Atiqur Rahman Khan Khadem, VP & Head of
Research, Islami Bank Training and Research Academy (IBTRA) for his insightful knowledges
that he shared with us. I am truly indebted to Mst. Zakiya Akhter Khanom, SPO & Faculty
Member, Islami Bank Training and Research Academy (IBTRA), for her mother like grooming
and advices on my trainee days. Both of them tried their best to manage their valuable time for
me, as well as gave me suggestions to conduct the study.

I would also like to thank my gratitude to MD. Anwar Hossain (Head of Branch & Manager)
at Mohammadpur Krishi Market Branch of Islami Bank Bangladesh PLC. I also would like to
thank my on-site supervisor, MD. Monirul Islam, Senior Principal Manager of IBBPLC
Mohammadpur Krishi Market Branch. I am also grateful to other personnel of this Bank. They
have generously helped and guided me with the practical knowledge and insightful analysis
throughout my study period in the organization.

Last but not the least, I believe OCSAR deserves an honourable mention here as well, for their
initiative and developing program on helping the students learn the corporate world culture and
ethics prior to their full-fledged career journey.

iv
 Executive Summary

This report discusses the e-banking mechanism of Islami Bank Bangladesh PLC, one of the
most prominent private banks in Bangladesh’s history. The full report has been segmented into
three chapters for convenience and more effective analysis.

The first chapter contains the primary section which covers an overview of the internship –
student information, internship information, job scope, and internship outcomes with some sub-
sections for broader understanding. Following that the second chapter discusses the corporate
section and overview of IBBPLC in a more descriptive approach; including segments like –
background and overview of IBBPLC, management, marketing, financial performance and
accounting, and operations management and inform system practices of IBBPLC, industry and
competitive analysis of IBBPLC, overall summary and recommendation. Lastly, the research
part is covered in the third chapter where a study is made with the help of primary, secondary
and many additional data along with a survey. This chapter delves into several segments and
evaluates the study in a more constructive manner describing e-banking tools and data analysis
the of the survey.

In the closing part, the report is concluded with an assist of conclusion and recommendation
part. Lastly, the references and appendix are given for the authenticity of the sources and the
study.

Keywords: Internship, IBBPLC, E-Banking, Marketing, Cellfin, iSmart, Shariah, Interest

Free, Mechanism, Riba, Islami Banking.

v
 Table of Contents

Declaration.............................................................................................................................................. i
Letter of Transmittal ............................................................................................................................ ii
Non-Disclosure Agreement .................................................................................................................iii
Acknowledgement ................................................................................................................................ iv
Executive Summary .............................................................................................................................. v
Table of Contents ................................................................................................................................. vi
List of Tables ........................................................................................................................................ ix
List of Figures ........................................................................................................................................ x
List of Acronyms .................................................................................................................................. xi
Chapter 1 ............................................................................................................................................... 1
Overview of Internship ......................................................................................................................... 1
1.1 Student Information .................................................................................................................... 2
1.2 Internship Information ................................................................................................................ 2
1.2.1 Period, Company Name, Department/Division, Address: ......................................................... 2
1.2.2 On-Site Supervisor’s Information: ............................................................................................ 2
1.2.3 Internship Placement ................................................................................................................. 3
1.2.4 Job Scope ................................................................................................................................... 4
I. Alternative Delivery Channel (ADC) ................................................................................. 4
II. Investment & Foreign Exchange ......................................................................................... 5
III. Account Opening ................................................................................................................ 6
IV. General Banking ................................................................................................................. 7
1.3 Internship Outcomes ................................................................................................................... 8
1.3.1 Contribution to the Bank ..................................................................................................... 8
1.3.2 The Benefits of My Internship ............................................................................................ 9
1.3.3 Challenges Faced During Internship ................................................................................. 10
1.3.4 Recommendations ............................................................................................................. 11
Chapter 2 ............................................................................................................................................. 12
Overview of Organization .................................................................................................................. 12
2.1 Background of Islami Bank Bangladesh PLC ................................................................................ 13
2.2 Overview of Islami Bank Bangladesh PLC .................................................................................... 15
2.2.1 Mission of IBBPLC .......................................................................................................... 17
2.2.2 Vision of IBBPLC............................................................................................................. 17
2.2.3 Core Values of IBBPLC ................................................................................................... 18

vi
 2.2.4 Strategic Objectives of IBBPLC ....................................................................................... 18
2.2.5 Achievements of IBBPLC ................................................................................................ 19
2.3 Management Practices of IBBPLC ................................................................................................. 20
2.3.1 Leadership Practices of Branch of IBBPLC ............................................................................ 20
2.3.2 Administrative Structure of IBBPLC ...................................................................................... 21
2.3.3 HRM Practice, Planning, Recruitment and Selection of IBBPLC........................................... 23
I. Recruitment Process .......................................................................................................... 23
II. Skill Development & Training .......................................................................................... 24
III. Policies of Employee Benefits and Remuneration ............................................................ 25
2.4 Marketing Practices of IBBPLC ..................................................................................................... 26
2.4.1 Marketing Mix of IBBPLC ...................................................................................................... 27
I. Product .............................................................................................................................. 27
II. Place .................................................................................................................................. 32
III. Price .................................................................................................................................. 32
IV. Promotion .......................................................................................................................... 37
2.5 Financial Performance and Accounting Practices of IBBPLC ....................................................... 38
2.5.1 Financial Performances ........................................................................................................... 38
I. Horizontal Analysis........................................................................................................... 38
II. Vertical Analysis ............................................................................................................... 39
2.5.2 Accounting Practices......................................................................................................... 40
2.6 Operations Management & Info. System Practices of IBBPLC ..................................................... 40
2.6.1 Operations Management .......................................................................................................... 40
2.6.2 Information System (MIS) ....................................................................................................... 41
2.7 Industry and Competitive Analysis of IBBPLC.............................................................................. 41
2.7.1 Porter’s Five Forces Model of IBBPLC .................................................................................. 41
2.7.2 SWOT Analysis of IBBPLC .................................................................................................... 44
2.7 Summary and Conclusion ............................................................................................................... 45
2.8 Recommendation ............................................................................................................................ 46
Chapter 3 ............................................................................................................................................. 47
Project Part.......................................................................................................................................... 47
3.1 Introduction ............................................................................................................................... 48
3.1.1 Literature Review .................................................................................................................... 49
3.1.2 Objectives ................................................................................................................................ 50
3.1.3 Significance ............................................................................................................................. 50
3.2 IBBPLCs E-Banking Tools ....................................................................................................... 50
3.2.1 Cellfin ............................................................................................................................... 51

vii
 I. Key Features of Cellfin ..................................................................................................... 51
II. Impact and Achievements ................................................................................................. 52
III. Transaction Limits of Cellfin ............................................................................................ 52
3.2.2 IBBL iSmart (iBanking).................................................................................................... 53
I. Features of IBBL iSmart ................................................................................................... 54
II. Charges of IBBL iSmart (iBanking) ................................................................................. 54
3.2.3 mCash ............................................................................................................................... 56
I. Features of mCash ............................................................................................................. 56
II. Transaction Limits ............................................................................................................ 56
III. Recharge Limits ................................................................................................................ 57
IV. Charges of mCash ............................................................................................................. 57
3.2.4 ATM Service ........................................................................................................................... 58
3.2.5 Any Branch Service ................................................................................................................. 58
3.2.6 SMS Service ............................................................................................................................ 59
I. Given Services .................................................................................................................. 59
II. Charges ............................................................................................................................. 59
3.2.7 Cash by Code ........................................................................................................................... 59
I. Features of Cash by Code ................................................................................................. 59
II. Charges ............................................................................................................................. 60
3.2.8 POS Terminal .......................................................................................................................... 60
I. Features of POS Terminal ................................................................................................. 60
3.2.9 Remittance Card ...................................................................................................................... 60
I. Features of Remittance Card ............................................................................................. 61
3.2.10 IBBL WhatsApp Banking ..................................................................................................... 61
I. Features of IBBL WhatsApp Banking .............................................................................. 61
3.3 Methodology ............................................................................................................................. 61
3.4 Research Questions (Survey Questionnaire) ............................................................................. 62
3.5 Research Outcome .......................................................................................................................... 63
3.5.1 Findings ................................................................................................................................... 64
3.5.2 Data Analysis (SPSS) .............................................................................................................. 71
3.5.3 Limitations of the Study .......................................................................................................... 85
3.6 Conclusion ...................................................................................................................................... 85
3.7 Recommendation ............................................................................................................................ 86
References ............................................................................................................................................ 87
Appendix .............................................................................................................................................. 89

viii
 List of Tables

Table 1 – Assigned Departments and Responsibilities .............................................................. 4

Table 2 – IBBPLC at a Glance ................................................................................................ 16

Table 3 – Management Methods of Islami Bank Bangladesh PLC ......................................... 21

Table 4 – Duties of Various Department Officials of IBBPLC ............................................... 21

Table 5 – Qualities of manpower in IBBPLC.......................................................................... 23

Table 6 – Key Responsibilities for Human Resource Managers ............................................. 24

Table 7 – Usual and Common Deposit Products ..................................................................... 28

Table 8 – Mudaraba (Savings Accounts) ................................................................................. 29

Table 9 – Monthly Savings Schemes ....................................................................................... 29

Table 10 – Term Deposits ........................................................................................................ 29

Table 11 – Investment products ............................................................................................... 30

Table 12 – Retail and Consumer Schemes .............................................................................. 31

Table 13 – Schedule of charges of General Banking Portfolio (May, 2024) .......................... 37

Table 14 – Horizontal Analysis (2022 – 2023) ........................................................................ 39

Table 15 – Vertical Analysis (2022 – 2023) ............................................................................ 39

Table 16 – SWOT Analysis of IBBPLC .................................................................................. 45

Table 17 – Transaction Limits of Cellfin (as per IBBPLC, 2024)........................................... 53

Table 18 – Feature of IBBL iSmart (as per IBBPLC, 2024) ................................................... 54

Table 19 – Charges of IBBL iSmart - iBanking (as per IBBPLC, 2024) ................................ 55

Table 20 – Transaction Limit of mCash (as per IBBPLC, 2024) ............................................ 56

Table 21 – Charges of mCash (as per IBBPLC, 2024) ............................................................ 57

ix
 List of Figures

Figure 1 – Products and Services of Alternative Delivery Channels (ADC) ............................ 5

Figure 2 – Islamic Banking in Bangladesh .............................................................................. 14

Figure 3 – Islami Bank Tower (Head Office of Islami Bank Bangladesh PLC) ..................... 15

Figure 4 – Mission, Vision and Values of IBBPLC ................................................................ 17

Figure 5 – Administrative Structure ........................................................................................ 22

Figure 6 – Marketing Mix (4ps)............................................................................................... 27

Figure 7 – Porter’s Five Forces Model .................................................................................... 42

Figure 8 – Research Outcome (Chart 1) .................................................................................. 64

Figure 9 – Research Outcome (Chart 2) .................................................................................. 64

Figure 10 – Research Outcome (Chart 3) ................................................................................ 65

Figure 11 – Research Outcome (Chart 4) ................................................................................ 65

Figure 12 – Research Outcome (Chart 5) ................................................................................ 66

Figure 13 – Research Outcome (Chart 6) ................................................................................ 66

Figure 14 – Research Outcome (Chart 7) ................................................................................ 67

Figure 15 – Research Outcome (Chart 8) ................................................................................ 67

Figure 16 – Research Outcome (Chart 9) ................................................................................ 68

Figure 17 – Research Outcome (Chart 10) .............................................................................. 68

Figure 18 – Research Outcome (Chart 11) .............................................................................. 69

Figure 19 – Research Outcome (Chart 12) .............................................................................. 70

Figure 20 – Research Outcome (Chart 13) .............................................................................. 70

x
 List of Acronyms

IBBPLC Islami Bank Bangladesh Public Limited Company

IBTRA Islami Bank Training and Research Academy

PLC Public Limited Company

CSR Corporate Social Responsibility

EFT Electronic Funds Transfer

EPS Earnings Per Share

FDR Fixed Deposit Receipt

DPS Deposit Pension Scheme

IASs International Accounting Standards

KYC Know Your Customer

ADC Alternative Delivery Channel

LC Letter of Credit

ATM Automated Teller Machine

MICR Magnetic Ink Character Recognition

MSA Mudaraba Savings Account

AWCA Al Wadeah Current Accounts

MSD Management Information Department

NID National ID Card

POS Machine Point of Sales Machine

RTGS Real Time Gross Settlement

TIN Tax Identification Number

TVC Television Commercial

xi
 Chapter 1

Overview of Internship

1
 1.1 Student Information

Name: Ayesha Afrin Amina Anika

ID: 19304078

Department: BRAC Business School

Program: BBA

Major: Marketing

Minor: Finance

1.2 Internship Information

1.2.1 Period, Company Name, Department/Division, Address:

Period: 90 days (3 months)

Organization: Islami Bank Bangladesh PLC (IBBPLC)

NB: (under Islami Bank Training and Research Academy - IBTRA)

IBBPLC Branch: IBBPLC Mohammadpur Krishi Market Branch

Department: Not Specific due to Job Rotation (ADC, Foreign Exchange & Investment,
General Banking)

IBTRA Address: 13A/2A Babar Road, block B, Mohammadpur, Dhaka-1207

IBBPLC Branch Address: IBBPLC Mohammadpur Krishi Market Branch, Mahfuza Tower,
42 Ring Rd, Dhaka 1207

1.2.2 On-Site Supervisor’s Information:

Name: MD. Monirul Islam

Position: Senior Principal Manager

Department: General Banking and Investment

Organization: IBBPLC Mohammadpur Krishi Market Branch

2
1.2.3 Internship Placement

Upon applying at Islami Bank Training and Research Academy – IBTRA, a unique approach
of Islami Bank Bangladesh PLCs for training their interns, employees, and other
visiting candidates; I got my internship in the middle of January 2024. Through their internship
program, IBTRA trains more than 100+ candidates 4 times in a single year. I had my internship
in batch 157, and there were about 125 students from all over the country including many
public and private universities. The orientation program was held at IBTRA’s auditorium very
meticulously with a warm reception and session of many insights about the organization, its
contribution to the country and its people and overall, its journey over the years. We were given
two weeks of training including theoretical classes (1st week offline, 2nd week
online) before joining the assigned branches. We were taught the basic knowledge regarding
Islamic and Shariah banking, and the contrast between Islamic/Shariah-based banking
activities and conventional banking with the help of IBTRA faculties, and many scholars from
other universities and banking sectors. These highly qualified people assisted us in learning
lots of knowledge from various areas of Islam, Shariah banking, Riba (interest), general
banking, economics and financial state of Bangladesh and its banks, international trading,
investment, fintech, CSR activities, marketing, foreign exchange, future of Shariah banking,
scopes of IBBPLC, etc. After completing the training for two weeks, we sat for a written exam
on the theoretical classes we had; and were given group work for preparing our internship
reports and presentation. Later, we were assigned to our respective branches of IBBPLC all
over the country. I had my on-site duties in Mohammadpur Krishi Market Branch of
IBBPLC which is near to my residence, and performed my duties diligently. IBBPLC trains
their interns through a job rotation program, which helped me to gain some hands-on
experience and insights in almost all the important areas and activities of a branch. After
finishing our branch duties, we had our award-giving, closing and cultural ceremony in the last
week at the IBTRA auditorium. We submitted our group reports and gave presentations on our
assigned topics. Based on our performances we were given awards; and by the grace of Allah
SWT, I secured my position as the best presenter among all the candidates and got awarded
with a prize. Lastly, we were given our internship certificates. In this 3-month journey, the
faculties of IBTRA played a huge role and helped us carry our internship journey seamlessly,
which I am very grateful for.

3
1.2.4 Job Scope

During my days at the branch, I have been appointed to multiple departments due to the job
rotation policy of Islami Bank Bangladesh PLC. This gave me more opportunity to learn from
my internship experience. Here are the departments I have worked in –

Department Responsibilities

Assisted with cards issuing (ATM, Debit, Credit), Celllfin app, iSMart app,
ADC
POS Machine, Dollar Endorsement and more

Investment & Filling up LC Files, Preparing Investment Deal Papers, Assisting

Foreign
Customers/Investor with Regarding Best Suited Investment Plans and more
Exchange
Account Account opening, Voucher Writing, Cheque Issuing and Writing, KYC
Opening Form Filling & Updating and more

General Form updating, Attending Clients, In-warding & Out-warding, Pay-

Banking order entry, Cheque Issuing, Cheque book distributions and more

Table 1 – Assigned Departments and Responsibilities

In order to meet the consumer needs and wants, Islami Bank Bangladesh PLC has many
assigned and different departments for particular services, duties and responsibilities. Which
consists of many departments like -

I. Alternative Delivery Channel (ADC)

Alternative Delivery Channels (ADC) are the modern version of providing banking services to
the customers with utmost diligence and more directly that helps the customer get seamless
services meeting their expectations, with accuracy and convenience.

At the beginning of my first two weeks in the branch, I was assigned to assist in the Alternative
Delivery Channel (ADC), where I helped out with issuing ATM cards for Mudaraba Savings
Account (MSA) and others. Additionally, I helped the customers with opening their Cellfin,
iBanking, POS machine and iSmart accounts, and issues faced related to the areas. This
department provides the customer with all the digital banking services with other additional
facilities. Its covered products and services are consisting of –

4
 • Cellfin • ibanking
• Credit Card • iSmart
• Debit Card • mCash
• Dollar Endorsement • POS Machine
• Email banking • WhatsApp Banking

Figure 1 – Products and Services of Alternative Delivery Channels (ADC)

II. Investment & Foreign Exchange

With the help of the company’s meticulous strategy planning and smart execution, Islami Bank
Bangladesh PLC has been having astounding performances since its journey and has managed
to be one of the most productive and successful banks in the country’s banking
industry. Upholding the principles of Shariah practice and following its path, Islami Bank

5
Bangladesh PLC has been able to distinguish the creation of an investment policy made on the
distribution and placement of both revenue and damage. Islami Bank Bangladesh PLC
emphasizes on achieving its settled goal and objectives while following the
investment policy, and Islamic/Shariah laws and regulations; rather than just focusing on profit
maximization, unlike other conventional banks in the market.

In my days at the investment department of two weeks, I could see the pattern of their strategies
and customer handling. This helped me understand why the clients chose Islami Bank
Bangladesh PLC instead of other banks; even the non-Muslim clients seemed very eager and
comfortable with Islami Bank Bangladesh PLCs investment policies and seemed relaxed about
investing in the said bank. In this department I helped out my higher-up colleagues with deal
making, filling out the necessary forms with credible details that I gathered from the clients
directly. I also prepared the LC files, vouchers, cheques, and dollar endorsement papers,
etc. with essential information and interacted with the clients.

III. Account Opening

Similar to every other bank in the respective industry, Islami Bank Bangladesh PLC also has
many types of accounts preferable to the customers based on their needs and conveniences.
The main difference in these accounts is the proposed profits that differ from the usual interest
rates and excessive costs. In other words, the shariah-based banking prohibits any kind of extra
charges and unjustified actions (Riba).

Islami Bank Bangladesh PLC proposes many types of accounts and among them, Mudaraba
savings accounts (MSA), Al Wadeah current accounts (AWCA), Mudaraba Savings Accounts
for students those are under the age of eighteen, and Mudaraba term deposit accounts are mostly
common. I assisted respective customers following the usual norm of opening a bank account;
for this regard the customer has to bring – 2 copies of passport-size photos, 1 copy of passport
size photo of the nominee, account holder and introducer's signatures on the back of the photos,
1 photocopy of the national ID card of the account holder, 1 copy of ETIN/TIN (if applicable
or have any), 1 photocopy of the passport account holder (if the account holder intend to travel
abroad or has any foreign deal to make), and a copy of the utility service bill. Apart from
opening accounts, I assisted the clients in filling up their vouchers and handed out the voucher
books when applied. Additionally, I also issued chequebooks and performed the necessary
measures if occurred. Sometimes, the customers used to get confused regarding cheque-related
6
transactions, then I helped them out with that matter by taking credible measurements. After
opening an account, I had to fill up KYC forms manually (which is very significant for any
bank) along with risk measurement papers of the client to illustrate the possible risk of the
account holder. On average, I opened around 30 accounts in a single day, which assisted me
with learning the behaviour patterns of many clients and their needs; as well as their
expectations and opinion regarding the bank.

IV. General Banking

General banking of a bank consists of many services, more like a mixture of multiple
departmental chains; and the general banking acts like a direct channel to bring all of these
functions together. Which explains its alternative name – retail banking. The main significant
roles and function of general banking are –

• Account Opening Desk • Clearing Desk

• Account Closing Desk • Help Desk
• Bank Statement Desk • Remittance Desk
• Cash Desk • RTGS Desk
• Cheque Issue Desk

Each department contributes to the overall efficiency and success of the bank by carrying out
its specific duties. To foster trust and confidence in the banking sector, they collaborate and
work hand in hand to ensure efficient operations, maintain high levels of consumer satisfaction
through excellent services, and adhere to regulatory requirements. Islami Bank Bangladesh
PLCs all-encompassing and well-coordinated approach allows it to successfully manage the
complexity of the financial landscape while meeting the different needs of its customers.

7
 1.3 Internship Outcomes

1.3.1 Contribution to the Bank

During the time of my internship at Islami Bank Bangladesh PLC, I have tried my utmost best
to perform every duty I was entrusted with. Even though I have been a contract employee
for 3 months only, I acted and performed as a full-time employee with a professional manner
and punctuality so that I can show the best version of myself authorities and clients. In every
desk and department, I was assigned to, my superintendents were very satisfied with my
performance and gave me compliments. They were also impressed with my skills, tech
knowledge and smart innuendos compared to the other interns they had so far; thus, led them
to have a better impression of BRAC University. They also said that the university has shaped
me with such advanced grooming and knowledge.

The bank is very busy and a happening place and that is why it frequently gets too noisy and
busy to even focus on the work. In those hectic times, my colleagues were very dependent on
me and even entrusted me with services that were not in my areas (higher-up work), which
shows how much trust they had in me and my skills. So, I uphold the legacy of my university
and gave my best performances that my academic works taught me as well as skills that I honed
myself. In other words, I can confidently say I have contributed to the Islami Bank Bangladesh
PLC through my hard work, intelligence and utmost diligence.

I believe that during my 3 months long internship, I was committed to carrying out all of my
assigned duties, tasks, and responsibilities with my utmost efforts and diligence; while
continuously working to improve my performance and abilities. I can also notice that my
honesty and hard work were rewarded through a successful and seamless internship
experience, which I believe has provided me with the essential norms and guidance I need to
have a better future in my career and endeavours.

8
1.3.2 The Benefits of My Internship

To complete my academic journey in an undergraduate program at my university, my

internship without any doubts was as important to me as my other course. My internship at
Islami Bank Bangladesh PLC helped me live in the corporate world and meet its culture in the
structured and safe atmosphere which I have longed for so long. Additionally, with the
advantage of paid professional experience, IBBPLC has encouraged me to learn anything I
could within the 3 months and utilize my time at the workplace as much as I could.

In the beginning, Islami Bank Training and Research Academy (IBTRA) trained us for two
whole weeks and even took the exam to have us more invested in the session that they
held solely for us to have a better look at the corporate world and be prepared for the coming
days. Their theoretical classes with warm preparations helped me understand IBBPLCs policies
and practices and made me prepared before I was assigned to the branch, so the journey was a
bit easier. The faculties of IBTRA also groomed me in a way that felt very comfortable and
made me as if I were their offspring. All of their program were hosted in such formalities that
lifted my spirit of learning and interests.

At my assigned branch (IBBPLC Mohammadpur Krishi Market Branch), I have met lots
of corporate people who have groomed me and shaped my current professional self, for which
I am very thankful. They have borne with my novice self and provided me with their precious
time to instruct and teach me professional things that I was not aware of before. I got to learn
professional communication skills, punctuality, time management, and corporate culture and
gained many new experiences, that I believe will be fruitful to me in the future. Additionally,
I picked up good organizational skills, effective communication, a professional work ethic,
timeliness, and task-prioritizing skills.

There used to be a time when I did not want to have a career in the banking
industry considering its monotonous work pressure. However, after completing
my internship I see myself eager enough to give it a chance in the possible future since I am
already aware of many of its working cultures and departmental chains; as well as I have a
more comprehensive understanding of the banking sector and its varied roles in the workplace.
Also, as a practising Muslim, my internship at the Islami Bank Bangladesh PLC has

9
encouraged me to stay on the path instructed by the almighty Allah SWT. Which sparked my
interest more to stay in the Shariah-based business field, and banking field to be precise.

Lastly, I want to express my gratitude to my colleagues for supporting me throughout my

internship journey and bearing with me their patience. I can confidently say that my fear and
hesitance are a lot less compared to my early days. Now I have the self-assurance and abilities
to take on new challenges in my future profession, and I am eager to utilize these experiences
to my additional future goals.

1.3.3 Challenges Faced During Internship

In every presence of something positive, there will always be a negative side and it is the rule
of nature. That is how we can feel the positive feeling and get motivated to move forward. So,
without any doubt, I have faced my position of challenges during my internship which led me
to have more experience and a heads up for my future.

Firstly, the working culture and system of Islami Bank Bangladesh PLC is still old-
fashioned which hindered my work pace and getting a hold of the tasks. For instance, their
computer operating system is Linux which is not compatible with present times,
moreover modern business world. Additionally, the employees are not up to mark
with modern business and banking practices which kind of surprised me, considering today's
progress in Bangladesh. Some of the employees held prejudice against me being a private
university student, but I have managed to break their stereotypes and made my own identity
with my astounding performances. Even though I proved myself before their eyes, it was hard
for me to sustain in a place that welcomed me with a cold shoulder at the very beginning of my
working days, due to their own beliefs that was solely based on some unpleasant and typical
social views.

Sometimes, the work pressure was too much for a novice like me who just stepped into the
corporate world, but in the end, it went well as I held my patience and constantly tried to
improve myself. However, the work pressure did not align with the monthly salary we were
paid. Compared to the other employees the salary seemed way too little, even though we did
our parts as much as theirs, sometimes even more.

10
1.3.4 Recommendations

Even though I have said lots of positive things I have mentioned in the previous sections,
I do have some constructive proposals for Islami Bank Bangladesh PLC to bring to life, so that
future interns do not face the challenges that I faced during my internship periods. Islami Bank
Bangladesh PLC should take these steps without any further delay in their future internship
program –

• The authority should train their employees to have minimum decency (especially elder
generation) to not show their inner prejudiced beliefs and impose on those who are new
to the workplace and most likely in lower designation to them
• The authority should upgrade the operating system of their computers and adapt to the
modern version of banking sector as well as update the method of communication
• The authority should make the computer usage available for the interns, alongside the
other employees to have more cutting-edge skills and systemic learning environment
• The salary of the interns should be up to the mark; aligning with the market standard,
and the authority is ought to follow that
• IBBPLC head personnel should come up with effective solutions regarding the
continuous rumours and malicious remarks regarding the bank, which is greatly
affecting its reputation and goodwill

11
 Chapter 2

Overview of Organization

12
 2.1 Background of Islami Bank Bangladesh PLC

Being both major and crucial part of a country, banking undoubtably is a vital factor for a
nation's economic prosperity. Banking provides crucial financial elements like – investment,
currency (flow in the market), financing, infrastructure etc. that effects and drives the whole
economy of a country’s government. In a country like Bangladesh, more than eighty percent
of the entire financial area of the economy is covered by banking sector, ever since its
liberation. So even before the beginning of the country, the traditional method of banking
which is conventional banking was introduced to this region by the British empire; and ever
since then it has been controlling and dominating the economy of the country.

Being a home to about 92% Muslims, people have been mostly uncomfortable associating with
prohibited (haram) form of transaction as in conventional banking, as it contains Riba (interest).
The Ummah of Prophet Muhammad PBUH, try their best to lead their lives by Islam and its
Shariah along with Sunnah; which is formatted by Allah SWT and Prophet Muhammad PBUH
for Muslim to follow. Shariah gives Muslim people a sense of reliance and security, and keeps
the societal balance and eradicates poverty. During 1963 in Egypt, the first Islamic Bank of the
world “Mit Ghamr Local Savings Bank” was formed though it was local only. Later, many
Shariah-based banks like The Nasir Social Bank (1967), The Islamic Development Bank in
Saudi Arabia (1975), The Dubai Islamic Bank (1975) etc. were established. So, the Shariah-
based banking was essential for this land, which later has been solved when Islami Bank
Bangladesh PLC came into the picture with the help of Dubai Islamic Bank and reassured
people with their service and many engagements. However, a question may arise, what is
Islamic Bank?

"Islamic bank is a financial institution whose statutes, rules and procedures expressly state its
commitment to the principles of Islamic Shariah and to the banning of the receipt and payment
of interest on any of its operations."

- Organization of Islamic Conference (OIC), (1978)

"Islamic Bank is essentially a normative concept and could be defined as conduct of banking
in consonance with the ethos of the value system of Islam."

- Dr. Ziauddin Ahmed (1970)

13
In simple terms, Islamic banking is a Shariah-based financing and system of banking and
financial services that operates in accordance with Islamic law (Shariah). The fundamental
principles of Islamic banking are rooted in the prohibition of interest (Riba), uncertainty
(gharar), gambling (maysir), and investments in businesses that are considered haram
(forbidden), as in those related to prohibited activities according to Islamic law.

Figure 2 – Islamic Banking in Bangladesh

Islami Bank Bangladesh PLC is the largest private (non-government) commercial bank in
Bangladesh, which follows the Islami Shariah to execute the banking service. Established in
March 1983, Islami Bank Bangladesh PLC is the first Shariah-based Islamic bank in the South-
East Asia; sparking hope and starting a new era for the Muslim Ummah of the country and the
sub-continent. It is one of the promising banks of the country that has been conducting its
services with full glory for more than four decades now.

14
 Figure 3 – Islami Bank Tower (Head Office of Islami Bank Bangladesh PLC)

Being the first s first interest-free bank of Bangladesh, IBBPLC fulfilled the people’s long
cherished desire and started operating in many forms besides banking and financial services.
After IBBPLC came into the picture, more handful of Islamic banks appeared in the country;
however, IBBPLC has always been stayed ahead in terms of performance and everything.

2.2 Overview of Islami Bank Bangladesh PLC

Islami Bank Bangladesh PLC was initially formed on March 13, 1983, as a Public Limited
Company under the Companies Act of 1913 and later fully started its financial activities in the
country on March 30, 1983. At the beginning of its journey, IBBPLC had about 63.92% of its
equity contributed by foreign investors as in Islamic Development Bank (IDB), and other
financial institutions such as - AI-Raji Company for Currency Exchange and Commerce of
Saudi Arabia, Kuwait Finance House, Jordan Islamic Bank, Islamic Investment and Exchange
7 Corporation of Qatar, Bahrain Islamic Bank, Islamic Banking System International Holding,

15
 S.A, Dubai Islamic Bank, Kuwait Ministry of Awqaf and Islamic Affairs. At present, IBBPLC
is the most popular bank of the people of Bangladesh.

As per the financial report of 31st December 2023, the regulatory capital of the bank is
108,376.71 million BDT and the paid-up capital is 16,099.91 million BDT. IBBPLCs current
deposit holds up to over 1,410,604 million BDT; total branch number 394, ATM booth 2121
all over the country, and number of employees are 20,878 (as per the IBBPLC website).

Agent
Paid up Credit No of ATM No of
Deposit Banking
Capital Rating Branch Booth Employees
Outlets

16,099.91 1,410,604 ST-1 (short

394 (main)
million million term) Long 2121 2,771 20,878
249 (sub)
BDT BDT term: AAA

Table 2 – IBBPLC at a Glance

As per the financial reports of Islami Bank Bangladesh PLC, total export receipts by the bank
decreased by BDT 77.41 billion or 20.60 per cent to BDT 298.35 billion during July-September
2023 from BDT 375.75 billion of April-June 2023. It also decreased by BDT 151.35 billion or
33.66 per cent more than that of the same quarter of 2022.

Apart from its usual financial services Islami Bank Bangladesh PLC has been playing a
significant role in setting up export-oriented as well as import-substitute industries in the
country to save valuable foreign currency and thereby contribute towards the development of
the country. The growth of the foreign trade business of IBBPLC has been quite remarkable in
the past few years. Being the most remittance-earning bank consecutively for many years in
the country IBBPLC has made its name in other sectors as well. Through its CSR activities,
environmental campaigns, charitable events etc. the bank has been dedicating and contributing
its name to people’s and environmental welfare including many sectors like – education, health,
environment, sports, industry, literature, cultural and relief etc. since its formation.

16
 Figure 4 – Mission, Vision and Values of IBBPLC

2.2.1 Mission of IBBPLC

• To build a welfare banking system to bring justice to all economic activities of the
country
• To ensure fairness and equity across a range of economic activities and areas
• To achieve equitable development and balanced growth by making a variety of
investments within minimum progressive areas in the country
• To assist in financial sectors, rural communities' and bring socioeconomic growth
across the country

2.2.2 Vision of IBBPLC

• To establish as the top Islamic Bank in Bangladesh by status and performance in order
to achieve increased economic success
• To build and regulate banking practices that will promote the expansion of the Islamic
Shariah-based economic system and reliability
• To evolve into a long-lasting, productive company with highly driven personnel
• To motivate on saving resources and investing the deposits wisely
• To promote investments that have higher chance on bringing appreciable outcomes and
employment

17
2.2.3 Core Values of IBBPLC

• Trust in Almighty Allah SWT

• Strict observance of Islamic Shariah
• Highest standard of Honesty, Integrity & Morale
• Welfare Banking
• Equity and Justice
• Environmental Consciousness
• Personalized Service
• Adoption of Changed Technology
• Proper Delegation, Transparency & Accountability

2.2.4 Strategic Objectives of IBBPLC

• To ensure client satisfaction

• To ensure banking that transcends welfare in the society
• To implement new technology into use and form a management succession plan in
order to monitor IBBPLCs progress into trustworthy financial organization
• To prioritize the well-being of the clients
• To encourage and inspire team members to deliver each duty with responsibility and
accountability
• To motivate an active, healthy future generation
• To consistently improve human and physical resources, provide sufficient logistics to
meet customer expectations
• To encourage sound and pro-active future generation
• To achieve global standard
• To strengthen corporate culture
• To ensure Corporate Social Responsibilities (CSR) through all activities
• To promote using solar energy and green banking culture and ecological balancing

18
2.2.5 Achievements of IBBPLC

• IBBPLC has been selected as the only Bank from Bangladesh in top 1000 banks in the
world by a UK based century old financial magazine, 'The Banker' published the list in
its July 2012 issue
• The first prize of the SARRC Anniversary Award for Corporate Governance was given
to IBBPLC by the Institute of Chartered Accountants of Bangladesh (ICAB)
• IBBPLC received recognition from the South Asian Federation of Accountants (SAFA)
as a joint winner of the 2010 Corporate Governance Disclosure Award
• In the Annual Report for the year 2010, the South Asian Federation of Accountants
(SAFA) additionally presented IBBPLC with a Certificate of Merit in the Banking
Sector
• IBBPLC received the ICMAB National Best Corporate Award-2007 (First Position,
Local Bank) and the ICMAB Best Corporate Performance Award-2008 from the
Institute of Cost and Management Accountants of Bangladesh (ICMAB) (Second
Position, Private Commercial Bank)
• IBBPLC received recognition from the Institute of Chartered Accountants of
Bangladesh (ICAB) for placing third in the category of banking in the best published
accounts and reports for the year 2010, as well as certificates of appreciation for the
years 2001 and 2010 and merit for 2008.
• For the years 2008, 2009, 2010, and 2011, The Global Finance, a reputable U.S.A.-
based quarterly Financial Magazine, named IBBPLC the nation's top Islamic financial
institution. IBBPLC was also recognized by Global Finance as the nation's top bank for
the year 1999, 2000, 2004 and 2005
• IBBPLC received "The Quality Recognition Award-2009" from ICICI Bank, Hong
Kong, for U.S. Dollar Clearing (2009)
• IBBPLC received the 2008 and 2009 Best Bank for Corporate Social Responsibility
award from Bankers' Forum
• IBBPLC won the 2007 Best Islami Banking Award from the fortnightly magazine
Bank-Bima Patrika
• IBBPLC was recognized as the "Largest Contributor" in international trade operations
in the Europe-Bangladesh corridor by Citi Bank NA in 2009

19
 2.3 Management Practices of IBBPLC

Management is an important practice for getting an organization or anybody’s things done. It

may be called the practice of consciously and continually shaping the organizations. Every
organization has the manpower that is entrusted with the responsibility of helping the
organization achieve its goal. Islamic management means conducting activities depending
upon the guidance of the Almighty Allah (SWT) and following the prophet Muhammad
(PBUH) with an accountable mentality, integrity and skills to achieve a predetermined
objective (Mohiuddin, 2012). In Islamic Management, managers are very much aware of their
responsibilities and accountability. They think that they are accountable to the Almighty Allah
(SWT) in any kind of decision taken by them. Side by side they don’t forget their ethical
responsibility (Izutsu, 2002).

In Islami Bank Bangladesh PLC, the banking structure and its management are solely followed
by Shariah and its principles. The management of IBBPLC is maintained with participative
leadership structures. Where every employee feels they are included in the picture and has
some sense of responsibility with accountability to the people and the Almighty Allah (SWT).

2.3.1 Leadership Practices of Branch of IBBPLC

In Islami Bank Bangladesh PLC, the branch of the Senior Principal Officer carries out the
leadership in the most frequent manner. During my internship days, I could see the pattern of
his leadership, as in – seeking opinions from every team member to conclude while creating a
participative environment, distributing responsibilities among the employees, seeking
feedback, calling for meetings frequently to stay in shape of the works, etc.

On a regular basis, the manager called for a meeting and scheduled it in such a manner that
everyone could be present. To make the most effective decision, the branch manager asks every
member for their feedback and overall thoughts on certain matters. He paid his full heed while
listening to their say while keeping notes and tabs on them. Due to his notion, all of the
employees felt included, appreciated, and empowered which made them more devoted to
achieving the company's goals and objectives. For the sake of customer some particular types
of management methods, techniques and strategies are adopted and practiced by Islami Bank
Bangladesh PLC for executing upgraded service -

20
 No. Management Methods of Islami Bank Bangladesh PLC
1 Manpower Management
2 Fund and Liquidity Management
3 Investment Management
4 Customer Service Management
5 Foreign Remittance Service Management
6 Management of ATM
7 Agent and Sub-Branch Management
8 Money Laundering and Terrorist Financing Management

Table 3 – Management Methods of Islami Bank Bangladesh PLC

Apart from the management styles, the employees and managers follow certain duties in
sequences and coherent manners. The duties of various officers hold some certain significant
and importance to them. These goes as followed –

No. Designation Responsibilities

1 Manager Operation Branch anti money laundering compliance officer
2 Investment In Charge Member-Investment related Issue
3 General Banking in Charge Member-GB related Issue
4 Fund Transfer Manager Member-Fund transfer related Issue
5 Cash In Charge Member-Cash related Issue
6 Account Opening Officer Member-Account Open related Issue
7 Foreign Remittance Officer Member-Foreign Remittance related Issue

Table 4 – Duties of Various Department Officials of IBBPLC

2.3.2 Administrative Structure of IBBPLC

The administrative structure of Islami Bank Bangladesh PLC follows certain roles, and the
structure is as shown below –

21
 Managing Director (MD)

Additional Managing Director (AMD)

Deputy Managing Director (DMD)

Chief Anti Money Laundering Compliance Officer (CAMLCO)

Senior Executive Vice President (SEVP)

Executive Vice President (EVP)

Senior Vice President (SVP)

Vice President (VP)

Assistant Vice President (AVP)

Senior Principal Officer (SPO)

Principal Officer (PO)

Senior Officer (SO)

Officer

Probationary Officer (PO)

Assistant Officer Grade I

Assistant Officer Grade II

Assistant Officer Grade III

Figure 5 – Administrative Structure

22
2.3.3 HRM Practice, Planning, Recruitment and Selection of IBBPLC

Human Resource Management of Islami Bank Bangladesh PLC is a very crucial issue like
every other organization; that is to cope with the competitive and strategic banking business
system and culture of modern times. In IBBPLC, the whole process goes through some
significant categories for a full-fledged formation from job circulating, screening, and
recruiting to finally selecting. This entails assessing the hiring budget, necessary competencies,
and current workforce to accurately forecast future hiring in line with their primary objectives
and company goals.

I. Recruitment Process

Through a complete analysis, IBBPLC selects its primary candidates, and then screens them,
and later hires them. After hiring, the newly placed employees go through basic training and
this part is carried out by IBTRA. There are some qualities that IBBPLC seeks in their
employees and they opt for grooming them to have and nurture with integrities, and these are
as followed in the table below –

No. Qualities Reference From the Quran

1 Ethical
2 Strategic
3 Knowledgeable Quran-58:11
4 Consistent
5 Communicative
6 Honest
7 Expertise
8 Committed
9 Proactive behavior
10 Sincerity Quran-4:35
11 Wisdom Quran-2:259
12 Reliable Quran-49:6
13 Truthfulness Quran-19:41
14 Risk Taking ability & mentality

Table 5 – Qualities of manpower in IBBPLC

23
Additionally, regarding the managers of Human Resource, there are some key responsibilities
that they are expected and bound to follow; and these are –

No. Key Responsibilities for Human Resource Managers

1 Asses company objectives (for certain period) and list them down

2 Evaluate every employee's skill level and dedication

3 Analyse and project foreseeable requirements for human resources

4 Strengthen their approaches for recruiting talent

5 Evaluate and revisit the strategy of action

6 Keep a steady and participative workflow and stress-free environment

Table 6 – Key Responsibilities for Human Resource Managers

IBBPLC uses two practices for the recruitment process, including internal sources and job
circulars. The bank employs individuals who are already working for IBBPLC, so the first one
is promotion. Credible workers are promoted based on their skills and dedication throughout
the years. Secondly, the job circulars from IBBPLC are regularly updated on its official website
and published through print media, such as – newspaper advertisements, or online portals like
LinkedIn or Bdjobs etc.

Traditionally, in the banking sector posts like Management Trainee Officer (MTO) come with
very decent salaries along with lucrative offers; hence the post is very popular among
undergraduates and other job seekers. IBBPLC MTO posts are no different from that. IBBPLC
has a very diligent recruitment process, and they receive ten times more than their vacancies.
Thus, before their selecting a candidate from the pool of applicants, they carry out written
exams, interviews, and medical examinations of them

II. Skill Development & Training

Unlike other banks in Bangladesh, Islami Bank Bangladesh PLC has a unique approach and
facilities for training and developing the skills of their employees. Since its formation, IBTRA
has been carrying out training programs for its staff and employees including an internship
program for fresh graduates; in which I have been trained and appointed as well. With the

24
purpose of innovation and grooming full-fledged candidates, the training program provides all
the necessary tools tangible or intangible. Additionally, IBTRA also provides residential
services for those who come from far or outside of Dhaka. The training period includes offline
and online classes; which are later assessed with examination and participative engagements.
This rigorous and unique approach of Islami Bank Bangladesh PLC has helped build their
strong workforce with steady skills and made them stand out in the vast field of the industry
while withstanding all the obstacles.

III. Policies of Employee Benefits and Remuneration

To have a prosperous society while carrying out welfare, it is evident that Islami Bank
Bangladesh PLC cares more for its employees than any other bank in the industry. The bank
has formed and adopted many lucrative policies for their employees to give them more
adaptability and ease of mind. Some of notable the policies of employee benefits and
remuneration of IBBPLC, that I have noticed in my working days are listed down below –

• Once in a year, the salary reviews are held

• All employees are paid within the 25th business day of each month
• Two fixed bonuses are given to regular employee in each year
• IBBPLC offers bonuses based on the performance
• Employees are offered opportunity of provident fund and gratuity
• On certain occasions, the employees are given bonuses from the profit
• A yearly increment is given to each employee
• The employees are trained through IBTRA, a unique program of IBBPLC
• Paid sick leaves are given to the employees
• Employees receive Takaful benefits (Shariah-based insurance)
• All employees are benefited with medical facilities while having special access to the
Islami Bank Hospital (located in Mirpur, Dhaka); that has been especially established
with the purpose of employee and company welfare
• Employees are given performance analysis, helping them understanding the needed
improvements in certain areas
• Based on the performance appraisal, employees are awarded, given increments,
incentives or needed trainings

25
 2.4 Marketing Practices of IBBPLC

Just like every other organization, Islami Bank Bangladesh PLC uses certain marketing
methods and tools for promoting its products and services to its targeted customers and
consumers. To reach the company objectives, and aimed goals, marketing comes as the most
important area. IBBPLC utilizes a vast range of instruments of marketing as an essential part
of its strategy, which are listed down below –

• advertising on print media (newspapers, magazines, brochures, flyers, pamphlets etc.)

• advertising on websites and social media (LinkedIn, Facebook, Instagram etc.)

• email marketing

• collaboration

• joint campaign

• sponsorships

• calendar/diaries distributing

• internship program

• digital marketing

• word of mouth

• strategic pricing

• CSR activities

• public events and relations; etc.

Apart from the mentioned instruments, IBBPLC uses many other methods for their marketing.
Their approach to reaching out to clients may seem a bit outdated, however, they keep proving
their reputation is the most effective key to their longevity in the market. Therefore, they came
up with digital marketing and e-banking a long time ago; and one of their most famous e-
banking tool Cellfin has been creating a buzz in the market for quite a time now. For the record,
Cellfin has been performing very well with strong market competitors like Bkash, Nagad,
Rocket, Upay, etc.

26
2.4.1 Marketing Mix of IBBPLC

In the context of marketing mix (the most essential area of marketing strategy), Islami Bank
Bangladesh PLC has been upholding its functions quite well balanced. Considering the 4ps of
marketing mix (product, place, price, and promotion), which are still complex and evolving in
Islamic banking field; however, more researches are needed in this particular area.

Marketing Mix – 4ps

Product Place Price Promotion

Figure 6 – Marketing Mix (4ps)

I. Product

Islami Bank Bangladesh PLC has a wide range of products and services, that covers up many
customer-oriented things, including regular banking services. Their offered products and
services for customers are based on various kinds of needs, wants, flexibilities and more. The
most carried out products and services by IBBPLC are as followed –

• Deposit Products
• Investment Products
• Retail and Consumer Schemes
• IBBPLC Card Services
• E-Banking Services
• Microfinance

27
Deposit Products:

Based on Shariah, Islamic principles, and law, Islami Bank Bangladesh PLC has launched and
introduced a lot of deposit products; named as – Al Wadeeah, Mudaraba, etc. with a variety of
current, savings, term, and many specialized accounts on consumer needs and preferences.
These product line gives and ensures clients with safety of their deposit along with the
enjoyment of profit earning in halal as in Shariah-based way. The variety of deposit products
are as followed in the table below –

Usual and Common Deposit Products & Services

Products Services
Al-Wadeah Current Account (AWCA)
NRB Service
Al-Wadeah Personal Retail Account (AWPRA)

Mudaraba Special Notice Account (MSNA)

Foreign Exchange Business
Mudaraba Payroll Account (MPA) Service

Mudaraba Foreign Currency Deposit Account (MFCDA) SME Service

Mudaraba Waqf Cash Deposit Account (MWCDA)

Mudaraba Upohar Deposit (MUD) Locker Service
Mudaraba Priority Savings Account (MPSA)

Table 7 – Usual and Common Deposit Products

Mudaraba (Savings Accounts)

Mudaraba Savings Account (MSA)

Mudaraba School Students Savings Account (MSSSA)

Mudaraba Student Savings Account (SMSA)

28
 Mudaraba Farmers Savings Account (MFSA)

Mudaraba Industrial Employees Savings Account (MIESA)

Table 8 – Mudaraba (Savings Accounts)

Monthly Savings Schemes

Mudaraba Special Savings Account (MSSA)
Mudaraba Muhor Savings Account (MSSA)
Mudaraba Hajj Savings Account (MHSA)
Mudaraba Bibaho Savings (MBS)
Mudaraba Education Savings Scheme (MESS)
Mudaraba Expatriate Housing Deposit Scheme (MEHDS)

Table 9 – Monthly Savings Schemes

Term Deposits

MTDR (Mudaraba Term Deposit Account)

MMPDA (Mudaraba Monthly Profit Deposit Account)

MNSBA (Mudaraba NBR Savings Account)

MSBA (Mudaraba Bond Savings Account)

Table 10 – Term Deposits

Investment Products:

Regarding investment, Islami Bank Bangladesh PLC has a set of products categorized as – Bai
Mode, Share Mode, and Ijara Mode. In the following table the products are mentioned as per
their categories –

29
 Investment Products
Bai Mode Share Mode Ijara Mode Others
SME Investment
Bai-Murabaha
MPI (Mudaraba Post Investment)
QTDR (Quard Against Term
Bai -Muajjal Murabaha
Deposit Receipt)
QMSS (Quard Against Mudaraba
Bai-Salam
HPSM Special Savings)
(Hire Purchase MPITR (Mudaraba Post
Bai-Istisna’a
Under Shirkatul Investment Trust Receipt)
Melk) MDB (Musharaka Documentary
Bai-As-Sarf
Bills)
Musharaka
Bai Muajjal FC Bills (Bai Muajjal
Foreign Currency Bills)
QSCA (Quard Against Cash
Assistance)

Table 11 – Investment products

Retail and Consumer Schemes:

Islami Bank Bangladesh PLC has been offering various kind of retail financing schemes to
those who are in need of – individual needs, home financing, medical assistance, auto
financing, personal financing, and education financing, etc. These schemes are designed to help
out the people with their needs for medical, vehicle, education, personal home, financing, Hajj,
Umrah etc. The following table includes all these schemes types –

Retail and Consumer Schemes

Home Financing
Auto Financing
Personal Financing
Credit Cards

30
 Savings and Deposit Accounts
Education Financing
Hajj and Umrah Financing
Takaful (Islamic Insurance)

Table 12 – Retail and Consumer Schemes

IBBPLC Card Services:

Islami Bank Bangladesh PLC offers diverse range of cards based on customers preferences and
needs, which includes regular debit/credit cards to special cards like Hajj or other
travel/international cards. The list below includes all the offered cards by IBBPLC –

• VISA Debit Card • IBBL e-CAB Prepaid Card

• Salary Card • Dual Currency PREPAID CARD
• Khidmah Credit Card • Travel Card
• Remittance Card • Hajj Card
• IBBL Business Expenses card • VISTA Card

E-Banking Services:

Islami Bank Bangladesh PLC has been providing a wide range of digital banking services along
with other additional services meeting customer’s preferences. Services like – mobile banking,
SMS banking, e-banking, e-commerce banking are now common terms among the customers
due to the vast demand and growing change in times. Even the old generation are keeping up
with the young generation due to the usage of smartphones and new technologies. For this
regard IBBPLC has introduced appreciable number of digital tools and services to their
customers. The commonly provided products and services among these are as followed –

• Cellfin • SMS Service

• IBBL iSmart • Cash by Code
• mCash • POS Terminal
• ATM Service • Remittance Card
• Any Branch Service • IBBL WhatsApp Banking

31
Microfinance:

For low-income individuals to small business owners, Islami Bank Bangladesh PLC provides
them with microfinancing services. Services like – savings accounts, takaful (insurance),
payments services etc. are offered to the people in need. This particular service as in
microfinance assist with helping out underprivileged people with a better livelihood, accessing
financing resources while letting them in contributing to the economic development of the
country.

II. Place

Placement of your business in the correct order is one of the most crucial things for the business
to see the light of success, thus turns out to be the second most important marketing strategy.
Islami Bank Bangladesh PLC has implemented it and still working on it very meticulously. As
a result, the bank has opened 394 branches across the country, including 249 sub-branchs and
2,771 Agent Banking Outlets; making it easier for its consumers to locate and receive the
services at ease. Being the largest in terms of branch network (among the private sector banks),
IBBPLC has managed to simplify its services to the customer with the help of its ATM booth
services. Since the years of 2000, IBBPLC has placed a total of 2,121 ATM booths all over the
country, making it more accessible for customers to have banking services; which explains the
customer's undying reliance on and trust in IBBPLC.

III. Price

To sustain in the long run in a competitive market, pricing should be made with the knowledge
of proper market research and with precaution. Thus, competitive pricing (aligning with the
market standard and central bank’s policy) is very important to stay relevant and operate in the
field. Islami Bank Bangladesh PLC has earned its reputation for being the bank with the most
positive pricing policy with a decent profit. IBBPLC’s main source of earning is its revenue
which comes from selling its products and services. However, being a non-interest bank,
IBBPLC does not charge any extra money (interest) to its customers, which explains its
unstable profit rate. Depending on the market, the profit rate fluctuates a lot. As for the charges

32
 that customer pays in return of services, in other words general banking charges are given
below (as of 2024). A complete portfolio for only general banking is given in table below

SL Type of Services Nature of Charges/Fees/ Commission Rate of Charges / Fees/ Commission

No.
Proposed

1 2 3 5

01 Al-Wadeeah Current Account Maintenance Charge Tk-500/- half yearly

Account
Account Maintenance Charge Up to Tk.5,000/- Tk. 50
(Half yearly) Tk-5,001/-25,000/- Tk-150/-
Tk-25,001/- Tk-100,000/- Tk-250/-
Mudaraba Savings Account
Above Tk. 100,000/-Tk-300/-
Mudaraba Special Notice Account Maintenance Charge
Account Tk-500/- half yearly

02 Al-Wadeeah Current Account Closing Charge Tk-300/-

Account
Mudaraba Savings Account Account Closing Charge Tk-200/-
Mudaraba Special Notice Account Closing Charge Tk-300/-
Account
Account Closing Charge Tk-100/-
MSS, MTDR, MSB, MNSB,

MMPDS Account
03. Collection: (Local) Commission Without clearing house at actual but
min Tk.50/- for below Tk. 50,000/-
a) Collection of local
cheques. Without clearing house at actual but
min Tk.100/- for above Tk. 50,000/-

b) Cheque Returned Charge Tk-150/- per cheque.

from clearing house.
c) Bounced Cheque Tk-150/- per cheque.
Charge
d) Collection of Cheque Up to Tk.25,000 @.15% but min Tk-
Charge
/bills clean/documentary 30/-
(outstation)
Tk.25,001/- to Tk-1,00,000/- @.15% but
min. Tk-100/-
Tk.1,00,001/- to Tk.5,00,000/- @.10%
but min. Tk.200/-

Above Tk.5,00,[email protected]% but min.

Tk. 500/- & max.Tk.3,000/-
i) Postage Charge At actual but min Tk.30/-

ii) email Charge At actual but min Tk.30/-

33
SL Type of Services Nature of Charges/Fees/ Commission Rate of Charges / Fees/ Commission
No.
Proposed

1 2 3 5

01 Al-Wadeeah Current Account Maintenance Charge Tk-500/- half yearly

Account
Account Maintenance Charge Up to Tk.5,000/- Tk. 50
(Half yearly) Tk-5,001/-25,000/- Tk-150/-
Tk-25,001/- Tk-100,000/- Tk-250/-
Mudaraba Savings Account
Above Tk. 100,000/-Tk-300/-
Mudaraba Special Notice Account Maintenance Charge
Account Tk-500/- half yearly

02 Al-Wadeeah Current Account Closing Charge Tk-300/-

Account
Mudaraba Savings Account Account Closing Charge Tk-200/-
Mudaraba Special Notice Account Closing Charge Tk-300/-
Account
Account Closing Charge Tk-100/-
MSS, MTDR, MSB, MNSB,

MMPDS Account
03. Collection: (Local) Commission Without clearing house at actual but
min Tk.50/- for below Tk. 50,000/-
a) Collection of local
cheques. Without clearing house at actual but
min Tk.100/- for above Tk. 50,000/-

b) Cheque Returned Charge Tk-150/- per cheque.

from clearing house.
c) Bounced Cheque Tk-150/- per cheque.
Charge
d) Collection of Cheque Up to Tk.25,000 @.15% but min Tk-
Charge
/Bills clean/documentary 30/-
(outstation)
Tk.25,001/- to Tk-1,00,000/- @.15% but
min. Tk-100/-
Tk.1,00,001/- to Tk.5,00,000/- @.10%
but min. Tk.200/-

Above Tk.5,00,[email protected]% but min.

Tk. 500/- & max.Tk.3,000/-
i) Postage Charge At actual but min Tk.30/-

ii) email Charge At actual but min Tk.30/-

34
SL Type of Services Nature of Charges/Fees/ Rate of Charges / Fees/ Commission
No. Commission
Proposed
11. Locker Service Small-Tk.2,000/- yearly
Medium- Tk.3,000/- yearly
Large- Tk.5,000/- yearly
Charge
Duplicate key for Locker Charge Cost at actual + Tk.1000/-

12. Solvency/BO/ Others Charge Tk.500/- for solvency certificate.

Certificate Tk.100/-for BO certificate.

Tk.300/-for others.
13. Account Statement Tk.200/-except once in June &
Charge
December also once monthly for AWCA
& MSND
14. Statement Authentication Tk.200/- per certificate
Charge
Certificate
15. Balance Confirmation Tk-200/- except once in June &
Charge
Certificate December
16. Transfer of Account from one Tk.200/- but in case of special scheme
Charge
branch to another branch. accounts Tk.50/-

17. Online Charges (Cash Above Tk.20,000/-Tk.15/-+ Tk.0.20 for

Charge
Deposit/Withdrawal/including next per thousand but max. Tk.1500/-
Transfer amount (within district)
Above Tk.20,000/-Tk.15/-+ Tk.0.30 for
next per thousand but max. Tk.2500/-
(Inter district)

Online Charges (Cash Up to Tk.1, 00,000/- free but not more

Charge
Deposit/Withdrawal/including than 2(two) times in a day.
Transfer amount (Divisional
city)
Online Charges taken for other Tk.0.50 per thousand for remitted
Charge
Bank’s remittance amount

18. On-line Charge Free A/cs Tk.2,000/- yearly

Charge
(Approved by Head Office)
19. NID Verification
Charge Tk.5/- per NID.
20. SMS alert
Charge Tk.1/- per SMS to be recovered half
yearly, subject to intimation to the client.

Staff Account- Free.

35
SL Type of Services Nature of Charges/Fees/ Commission Rate of Charges / Fees/ Commission
No.
Proposed
21. BEFTN transaction EFT Charge Free
(domestic remittance) Credit
entry
Payroll Private (account with Free
EFT Charge
other bank) Credit entry
Dividend/ profit (account Free
EFT Charge
with other Bank) Credit entry
Refunds warrant of IPO by Free
EFT Charge
cheque. Credit entry
Business to Business Free
payments (B2B) Credit entry EFT Charge

Collection/Payment of Free
EFT Charge
auction/sell/buy between two
parties
Government Tax Payment &
EFT Charge Free
customer-initiated transaction
(Credit entry)
Collection A/C
EFT Charge Free
22. iBanking charges (fund Commission Tk.0.25 per thousand but min.Tk.5/- & max
transfer) Tk.100/-, in case of EFT transaction in
iBanking, EFT charge Free.Tk.1/-per
mCash transaction through iBanking.Free
for staff account.
23. Issuance of Cheque Book: Tk.5/- per leaf for AWCA & MSND
account and for others Tk.4/-.
i) MICR

ii) Non MICR Tk.2/- per leaf for any type of accounts.

24. Stop Payment: Charges Tk.200/- per instruction for Clearing

cheque.
i) AWCA/MSNA
Tk.300/- per instruction for Cash cheque.
Tk.500/- per instruction for entire cheque
book
ii)MSA Charge Tk.100/- per instruction. (flat)

25. Service charge for Quard Charge Up to Tk.1 Lac Tk.1000/-

against MTDR, MSB,
Above Tk.1 Lac to 10 lac Tk.1500/-
MNSB, MMPDS, MSS etc.
Above Tk.10 Lac to 20 Lac Tk.2,000/-

Above Tk.20 Lac Tk.3,000/-

26. CC camera Video Footage. Charges Tk.2,000/- for Dhaka and Chittagong city
& Tk.3,000/- for another district per booth
Branch.

36
SL Type of Services Nature of Charges/Fees/ Commission Rate of Charges / Fees/ Commission
No.
Proposed
27. RTGS per transaction (except Charge Tk.100/- only per transaction.
Govt. entity)
28. e-GP Charge Registration Fee - Tk.200/-
Registration Renewal Fee – NIL
Tender Document Fee Tk.100/-
Tender Security Fee Tk.200/-
Performance Security Fee Tk.200/-

Security Document Store Purpose Tk.200/-

New Performance Security Fee Tk.200/-
Complaint Registration Fee Tk.200/-
Complaint Security Fee Tk.200/-
Transaction for Security Release Tk.200/-

29. Issue Charge Silver Debit Card Free /but Platinum Debit
Card Tk.500/-

Tk.300/- for Silver &Tk.1,000/- for

Renewal Charge
platinum
Tk.200/-
Proprietary /Silver & Card replacement Charge
Platinum Debit Card issue
Tk.50/-
PIN replacement Charge
Free
For SMSA/MFSA/Staff/MIESA
Charges

Table 13 – Schedule of charges of General Banking Portfolio (May, 2024)

IV. Promotion

Islami Bank Bangladesh PLC conducts its promotion through a variety of sources and
mediums; starting from print medias (newspapers, magazines, brochures, flyers, pamphlets
etc.) to social media, events, campaigns, TVCs, radio promo, interviews, and many more. The
bank is very enthusiastic regarding its promotion, and lately has been keeping up with the
trends and change of time. IBBPLC has taken its digital banking service in new aspect,
breaking the typical norms and beliefs regarding Islamic banking. IBBPLC has previously
sponsored Bangladesh Cricket Team few times, on a special note has been the banking partner
in holding ICC World Cup in 2011. In recent era, IBBPLC has been maintaining its social and
digital media presence by regulating its official accounts on – Facebook, Instagram, LinkedIn,

37
Twitter, YouTube, IBBPLC Official Website as well as creating brand promotions on
television to social medias. Apart from these IBBPLC promotes though –

• email marketing • internship program

• collaboration • digital marketing

• joint campaign • word of mouth

• sponsorships • CSR activities

• calendar/diaries distributing • public events and relations; etc.

2.5 Financial Performance and Accounting Practices of IBBPLC

In terms of Islami Bank Bangladesh PLCs financial performances, the bank has stood out very
much in the past few years; which explains its stable state in the banking field. A company’s
financial performance tells us the actual strength of the company and its compatibility in the
market. After taking look at the financial reports, the possible performance of the company in
the future and upcoming days can be predicted with some numbers as probability.

2.5.1 Financial Performances

To have a better look at the financial performances of IBBPLC, a horizontal and vertical
analysis has been done below –

I. Horizontal Analysis

A horizontal analysis is basically a trend analysis that compares the data of financial statements
over the years or quarters. Which helps the stakeholders, investors, business analyst, and
company management understand the company’s overall financial performances.

Percentage Change = (Recent Year – Previous Year) / Previous Year

38
 Particulars 2023 2022 %
Paid Up Capital 19,099,906,680 19,099,906,680 0.00

Total Share holders’ Equity 72,840,924,514 69,571,113,758 0.05

Total Deposits 1,533,352,997,369 1,409,314,554,809 0.09

Total Investments 1,595,265,662,100 1,456,365,497,513 0.10

Total Property and Assets 2,032,331,098,519 1,838,705,121,249 0.11

Total Operating Income 60,881,405,099 53,116,106,695 0.15

Total Operating Expenses 37,821,562,336 31,366,374,658 0.21

Profit Before Tax 16,842,677,297 14,938,357,117 0.13

Net Profit After Tax 6,353,330,930 6,166,998,229 0.03

Table 14 – Horizontal Analysis (2022 – 2023)

II. Vertical Analysis

A vertical analysis, also known as Common Size Analysis, is a widely known instrument for
financial analysis which displays the relationship of each item as a percentage of a base figure
within the same financial statement.

Particulars 2023 % 2022 %

Cash in Hand 117,904,765,300 0.06 123,504,817,210 0.07
Total Investment 1,595,265,662,100 0.78 1,456,365,497,513 0.79
Total Property and Assets 2,032,331,098,519 1 1,838,705,121,249 1
Total Deposit 1,533,352,997,369 0.75 1,409,314,554,809 0.77
Total Liability 1,959,490,174,005 0.96 1,769,134,007,491 0.96
Total Shareholder’s Equity 72,840,924,514 0.04 69,571,113,758 0.04

Total Shareholder’s Equity

2,032,331,098,519 1 1,838,705,121,249 1
and Liability

Table 15 – Vertical Analysis (2022 – 2023)

39
As per the table, IBBPLCs liabilities are kind of lower than assets, that tells that the bank is in
good shape. Also, since the total liabilities are more than the equity, it means that the company
has a large number of debts than its actual equity. On the other hand, Investment has been
decreased by 0.01 in 2023 than 2022. In 2023, there have been a few changes in deposit and
other areas, which tells that there can be long-term improvement of the bank.

2.5.2 Accounting Practices

IBBPLC keeps their calculations and day-to-day records via every branch, and after some time
they are sent to the head branch of IBBPLC and lastly to the central bank (Bangladesh Bank).
Some calculations are done manually, even though they use a computerized system; however,
since they use the Linux operating system, they have yet to use the advanced method of modern
accounting for their convenience. Thus, these calculations and data keeping are done through
a hybrid method. Following international standards, they prepare their financial statements and
balance sheets by computer at the end of the period; for this purpose, they use the accrual
method of accounting.

2.6 Operations Management & Info. System Practices of IBBPLC

Islami Bank Bangladesh PLC uses an inclusive approach to maintain its operations
management and information system for the steady balance of its products and service. The
operation management ensures the safety and guarantees the protections of the products and
services through its organizational discipline and chain of command.

2.6.1 Operations Management

Regarding operation management, they maintain cost-effective methods to use the resources
that are mostly available and safe to invest and utilize. Through this approach and by reducing
the procedures of such a lengthy system, they keep maintaining their full balance in attending
to their customers and investors. In every branch, an operation manager is assigned to maintain
all of the tasks efficiently and effectively. The manager is responsible for preparing budgets
and forecasting them, monitoring the employees, scheduling, resource allocating, managing
inventories, maintaining supplies, coming up with contingency plans, etc. for the smooth run

40
of the branch activities. Each month the manager is expected to report to the head branch with
full details of these activities and management of his assigned branch.

2.6.2 Information System (MIS)

Management information system in short, MIS comes in very handy in terms of managing and
monitoring an organizational activity, resulting in a smooth transition. The MIS department of
an originations deals with all the data keeping, report making, and data analysing related to all
the branch departments such as – general banking, investment, foreign exchange, information
desk, cash, ADC and others. The management information system’s primary objective is to
compile and display all data gathered from all the departments of the organization. This
smoothens and elevates the standard for choices; that support the profitability and productivity
of the organization. To ensure that goal, IBBPLC makes the most use of the MIS department;
for that purpose, the department utilizes a variety of software and systems like – SPSS, Main
Payroll, Building Capacity, Stationery Network, Circular Curator, Assets Reckoner and
Maintenance Tracker, etc. This software and modules are also operationally and technically
supported by the MIS department for a seamless transition.

2.7 Industry and Competitive Analysis of IBBPLC

In this competitive era of Bangladesh's banking sector, there are about 61 commercial banks
that are currently operating under the control and full regulation of the central bank
(Bangladesh Bank). Among these number, 10 banks are Islami Shariah-based Private
Commercial Banks. Being the pioneer in the field, Islami Bank Bangladesh PLC has been
setting an ideal example for others in the market. As time went by, more Shariah-based banks
came into the picture; adding more pressure with the existing traditional commercial banks.
However, as the market grows the competitive challenges seem to increase a lot than in
previous years.

2.7.1 Porter’s Five Forces Model of IBBPLC

This competitive scenario and environment of the market can be analysed through the famous
Porter’s Five Forces Model, which is specially designed for business and financial
organizations to detect its expertise, challenges, capacities, etc. in certain areas. These areas
include –

41
 i. Rivalry of Competitors iii. Suppliers’ Strength
ii. Potential of New Market Entrants iv. Customers’ Strength
v. Threat of Substitutes

Figure 7 – Porter’s Five Forces Model

I. Rivalry of Competitors

This area detects how competitive the market is with the presence of potential competitors. In
the banking market of Bangladesh, currently 61 commercial banks are operating. Ten banks
among them are Shariah-based, and Islami Bank Bangladesh PLC is the torch bearer among
them. Despite being a very competitive industry, IBBPLC has shown quite the performance
over the years since its journey. However, other banks also try to come up with more strategies
to win over the market providing their best performance to the customers, hence the
competition is getting tougher with time. They try to introduce lower rates with lower funding,
to attract customers to invest more; and also bring new technologies with adaptive options due
to market demands.

42
 II. Potential of New Market Entrants

In Bangladesh, due to the fewer restrictions and legal actions (despite having several laws),
many banks are emerging with time very frequently. If a company has enough resources to
open a bank, it can establish it by simply following the Bangladesh Bank Order, 1972 and the
Bank Company Act, 1991. This flourishing industry is getting investments through many
resources. This explains why IBBPLC has the potential risk of new entrants in the market.

III. Suppliers’ Strength

Funding or capital is a key resource to sustain a bank. For a bank, there are many suppliers;
however, the main supply of this resource comes from the clients’ deposits. The clients, along
with the investors play a significant role in keeping IBBPLC alive in the market. The bank can
pull out all of its performance due to the deposits and investments. Which explains the
importance of the suppliers of IBBPLC on it.

IV. Customers’ Strength

With time customers tend to have new demands due to the change of time and advancement of
the technologies, as well as change of lifestyle; nonetheless, they seek security with better
services of banking and want competitive pricing. They are very similar to the shoppers who
tend to hop from one shop to another to find better products and services, in the case of banking
it is no different. However, the threat arises when it happens in a collective matter rather than
an individual. The strength of customers depends on its density; if it happens in large numbers
whether for good cause or bad, the bank faces consequences depending on the situation.

V. Threat of Substitutes

In the banking industry, the competition is already present and sometimes it gets hectic.
However, the scenario gets more chaotic when threats enter from outside of the industry. As
in, people receive financial services from non-industrial companies; similar to when a customer
purchases products and services that come with paying in instalments. These shops or
companies usually have their deal with regular financial companies instead of banks in trade
of lower rates. Thus, threat occurs inevitably.

43
2.7.2 SWOT Analysis of IBBPLC

SWOT analysis is a vastly used method of evaluating four particular attributes of a company,
situation or a person. This analysis is widely used and excepted medium of screening things
before making a decision. The whole abbreviation of SWOT means – Strength, Weakness,
Opportunity and Threats. To have a better look at IBBPLC, the SWOT analysis is given down
below –

Strength Weakness

• IBBPLC is the pioneer of Shariah-based • IBBPLC is considered kind of

bank in Bangladesh (since 1983) backdated in terms of modern marketing
• IBBPLC has its largest network spread • The promotional strategies of IBBPLC
all over the country with 394 branch, are less effective in comparisons to other
249 sub-branch & 2,771 Agent Banking banks in the market
Outlets • The employees in need of more
• IBBPLC has been keeping its positive professionalism and expected to get
image and legacy for 41 years updated with the new era of banking
• IBBPLC is known for its safe working • IBBPLC lacks advanced and
environment and providing employees computerized technologies
with numerous advantages implementation in their branch offices
• IBBPLCs products and services are • The operating system of the branch
widely accepted and reputed in the computer is not compatible with modern
market era of banking
• IBBPLC has very skilled employees • The elder employees are not well trained
who give their best to give customer- or accustomed to advance and digital
oriented services banking
• IBBPLC has been growing widely with • All branches do not maintain the same
time; has been earning the highest quality of product and services as well
remittance for the past few years as the coherence of banking chain
• IBBPLC has unique institution as in • The recent and ongoing rumours are
IBTRA for training their interns, putting IBBPLCs image and value at
employees, visiting students and others risk
with lots of facilities
• IBBPLC has unique set of CSR services
that distinguishes them from other
banks in the market
• Cellfin has turned out as a game changer
for IBBPLC with its astonishing
performances in terms of digital
banking and customer retention

44
 Opportunity Threats

• IBBPLC has their room of opportunities in • New enlisted Islamic banks in the market
opening new outlets or branches in remote has created a more competitive environment
areas of Bangladesh that puts IBBPLC at a rough situation; in
• IBBPLC can implement new marketing addition to the regular conventional banks
strategies with innovative ideas who are opting Islamic banking services
• IBBPLC may bring the young generations beside regular banking services
ideas into use by holding case competitions • The ongoing inflation is a big threat to the
and hiring them; which will help them whole economy, as well as to IBBPLC
standing out in the market • The sudden price hike of dollars can
• Technological advance will create more damage bank’s performances
scope for IBBPLC in reaching the target • Recent uncontrollable rise of loan defaulters
audience and the market in the country undoubtedly puts IBBPLCs
future possibilities at risk
• Hiring young experts and placing them in
strategic, IT and marketing departments • People’s negative impression on IBBPLC
will assist IBBPLC to stay updated in the due to the constant rumours
market • Economic regression of Bangladesh
• IBBPLC can promote Islamic ideas, • Taka’s price inconsistency
expertise, and bring awareness

Table 16 – SWOT Analysis of IBBPLC

2.7 Summary and Conclusion

Islami Bank Bangladesh PLC has been consistent in providing the best services to the people
since the day of its incorporation; which has been proven by its constant position at being
Bangladesh’s top bank throughout the years. IBBPLC has earned the trust of the people through
their best services and hard work. Thus, the bank has the largest number of customers and
consumers and still growing. The bank has been dominating the market with effective services
that maintain the best quality and customer-oriented attributes. All of the departments of the
bank have certain goals and objectives to reach which they accomplish with their blood, sweat
and tears. The industry analysis shows IBBPLCs competitive advantage and current position
in the market, with some predictable obstacles. However, the ongoing disturbance in the
economy of Bangladesh has been taking a toll on the market including the bank. However, the
non-stop drama and rumours regarding IBBPLC have put doubts in the minds of the customers
which is greatly affecting the image and goodwill of IBBPLC. Apart from these obstacles and
threats, IBBPLC has maintained its legacy from day one, being the torch-bearer it is.

45
 2.8 Recommendation

Based on the previously discussed study, and data analysis, there are some steps that could be
beneficial for Islamic Bank Bangladesh PLC to follow in the future. These are mentioned down
below –

• IBBPLC should come up with trendy and more updated marketing approach to engage
with their target audience
• IBBPLC can opt for SEO marketing more effectively, it will increase online visibility
and engagement
• IBBPLC should do thorough customer retention program, and keep tabs on them
• Continuous product/service innovation along with existing product/service
development can enhance their market performance
• More customer segmented and oriented marketing approach can be adopted
• Personalized service with good communications and gathering feedback later on can be
helpful to understand customers’ expectations and demands
• IBBPLC should upgrade the operating system of their computers and adapt to the
modern version of banking sector as well as update the method of communication
• IBBPLC can set themselves as an example by advocating and emphasizing on SDC
programs while practicing and implanting sustainable practices
• Considering the global climate disaster, IBBPLC can do environmental campaign to
raise awareness among people, which will also assist them with their goodwill
• Hiring more young people who are innovative and creative with marketing and
information technology
• IBBPLC should take legal actions and deal with the ongoing rumours and defamation
regarding the bank smartly
• The head personnel need to take the ongoing concerns regarding IBBPLC seriously,
and take necessary steps and measures to re-build and reassure their existing and future
customers

46
 Chapter 3

Project Part

47
 3.1 Introduction

In this modern age of finance, the implementation of technology and marketing has been rather
pivotal than being a choice regarding traditional banking models. Since the beginning of its
journey in 1983 as the pioneer of Islamic banking in Bangladesh, Islamic Bank Bangladesh
PLC has adapted its steps according to the era and has been at the forefront of this
transformative journey. Under the light of Shariah compliance and its organizational
objectives, IBBPLC has embraced and emerged in the digital age while introducing digital
products and mediums to customers. This particular part of the report delves into the
multifaceted layers of e-banking and marketing practices of IBBPLCs online banking.

E-banking undoubtedly is one of the most crucial parts of today’s world; which has become a
daily essential in peoples’ lives. Being a convenient way of banking in real time be it local or
international, the term has made banking easier than it was before. Since the early 2000s.
Bangladesh has undergone several formations and has been introduced to many of its channels.
In 2006 IBBPLC started operating their e-banking system, and offered its digital products to
the customers; since then, IBBPLC has introduced several digital products and platforms such
as – SMS banking, mCash, email banking, Cellfin, and iSmart. These digital products and
services are widely accepted by customers and day by day getting more hype. Specially Cellfin
has had outstanding performance since it was launched in 2020, during the time of the global
pandemic and crisis. Which helped people receive banking services during the tough time.

An organisation’s core success depends on how strategically enriched its marketing approaches
and practices are. Marketing strategy assists a bank in attracting new customers and retaining
existing ones through upgrading and modifying their products and services. Effective
marketing helps banks distinguish themselves from competitors and generate brand awareness
and loyalty. The overall marketing process of IBBPLC has many segments and layers to it.

This chapter discusses the multiple layers of e-banking and marketing practices of IBBPLC;
with the help of a survey that has been conducted on its customers. The literature review delves
into the academic and theoretic approach of the study. In the methodological part, the medium
and tools have been discussed in detail. The data analysis section further discusses the findings
and gives interpretations based on the found data. Lastly, comprehensive recommendations and
conclusions have been given for IBBPLC.

48
3.1.1 Literature Review

Islamic banking is a Shariah-based financing and system of banking and financial services that
operates by Islamic law (Sharia). The fundamental principles of Islamic banking are rooted in
the prohibition of interest (riba), uncertainty (gharar), gambling (may), and investments in
businesses that are considered haram (forbidden), as in those related to prohibited activities
according to Islamic law.

As discussed by Farooqui (2022), Islamic banking is a system that operates by Islamic law,
emphasizing ethical investments and profit-sharing. This approach has been linked to economic
growth, suggesting its potential as a viable alternative to conventional banking. Iqbal and
Llewellyn (2002) further explore the benefits of Islamic finance, particularly its potential to
enhance the efficiency and stability of financial systems through profit-sharing contracts in
society. In addition, Moisseron, Moschetto, & Teulon (2015) point out the increasing
prominence of Islamic finance in the global banking system, highlighting its role in the new
world order. Cammack (2015) also adds that Islamic finance has been rapidly growing in the
industry, and is characterized by its compliance with Islamic law and its focus on profit-sharing
contracts. It has emerged as a viable alternative to conventional finance, offering a Sharia-
compliant approach to banking, investment, and insurance services (Visser, 2019). The
evolution and emergence of Islamic trade finance signify it brings a bright future for local and
international trade financing (Kasi, Shaharuddin, & Kechil, 2019).

Alzahmi (2021) addresses that, the implementation of e-banking in Islamic banks, has managed
to improve the product and service quality along with customer relations. However, the Islamic
countries have yet to opt for some development since there is a lot of lacking in the services
(Balach et al., 2003). On the same note, e-banking strategies and formations have to be aligned
with the Shariah principles and its rules and regulations; for that, a range of marketing strategies
have been proposed and adapted to e-marketing strategies (Roumieh et al., 2018). Azura &
Dalimunthe (2022) further added that the importance for Islamic banks to compete in the
market is increasing and it can only be done by improving the services and performances.
Tanjung (2018) pointed out that human resources have their own value in terms of proposing
strategies for recruitment and training programs in Islamic banks.

These studies collectively suggest that Islamic religiosity, trade finance, market stability,
competency and economic factors all play a major role in e-banking and marketing.

49
3.1.2 Objectives

The core purpose of this study is to identify and analyse the e-banking and marketing practice
mechanism of Islamic Bank Bangladesh PLC; the objectives are mentioned below –

• To have a better look and understanding of the e-banking and marketing practice
mechanism of IBBPLC
• To illustrate and evaluate the performance status of the e-banking and marketing
practice mechanism of IBBPLC through a customer survey
• To understand various kinds of performance mechanisms of IBBPLC
• To create a comparative analysis of the collected data
• To give some suitable and probable recommendations under the basis of analysis

3.1.3 Significance

The significance of this study is to point out and highlight the potential of the e-banking and
marketing strategy in the present and future aspects. This intends to help in identifying the roles
of different segments and modes of e-banking and its marketing strategies. The data analysis
will also assist in looking at the current performance of Islamic Bank Bangladesh PLC in the
market; curating to mark the adequate upgrade and development needed for the digital products
and services. The questionnaire of the survey was designed to serve this purpose. This study
has significance and potential value to IBBPLC in enhancing its operating its e-banking and its
marketing approaches in the favour of its customers and attaining its quality and efficiency.

3.2 IBBPLCs E-Banking Tools

Islamic Bank Bangladesh PLC has introduced its E-Banking/Online Banking services since
2006. IBBPLC being one of the biggest online connectivity’s in the country as well as among
all of its branches has the capacity of providing decent customer service to its customers.
However, this does not mean that e-banking refers to Internet banking in Bangladesh. It is a
cloud system or facility to do banking functions from anywhere in the country. The known
methods of online banking came up with the term “e-banking” as in electronic banking. The
widely known and used IBBPLCs e-banking products or tools are as mentioned below –

50
 • Cellfin • SMS Service
• IBBL iSmart (iBanking) • Cash By Code
• mCash • POS Terminal
• ATM Service • Remittance Card
• Any Branch Service • IBBL WhatsApp Banking

In the following section down below, the widely used e-banking tools and products of IBBPLC
is going to be discussed in broad approach; according to the IBBPLC website and further
disclosed information for the public.

3.2.1 Cellfin

Cellfin, introduced by IBBPLC in 2020,

during the global pandemic, is a
comprehensive omni-channel banking
platform that offers a wide range of financial
services to its users. It provides convenience
and accessibility to users in various
geographic locations (beside home country),
including the USA, Singapore, Australia, the
Middle East, and European countries. This
section delves into the key aspects of Cellfin.

I. Key Features of Cellfin

Virtual Prepaid Cards: Upon registration, Cellfin users receive instant virtual prepaid cards
powered by Visa or MasterCard, including virtual dual currency prepaid cards.

Electronic KYC Mechanism: Cellfin operates on an electronic Know Your Customer (KYC)
mechanism, allowing users to open various types of IBBPLC accounts without visiting physical
branches.

51
 • Account Management: Users can manage their savings accounts, check balances,
view statements, and transactions within the Cellfin app. They can also place
requisitions for cheque books.
• Payment and Transaction Services: Cellfin provides various payment and transaction
services, including instant fund transfers to other banks, cards, or Mobile Financial
Services (MFS) like bKash, Upay, Rocket and Nagad.
• Cash Handling: Users can add money to their Cellfin accounts from any bank's card,
IBBPLC savings account. Cash-in and cash-out services are accessible through
IBBPLC branches, ATMs/CRMs, or Agent outlets.
• Foreign Remittance: Cellfin users can receive foreign remittances securely through a
secret PIN or the VISA Direct channel.
• Additional Services: Other features include e-commerce payments, mobile recharge,
ticket purchases, school and college fee payments, and utility bill payments for services
such as DPDC, DESCO, Dhaka WASA, and more. Impact and Achievements Cellfin
has had a significant impact on IBBPLC and the broader banking industry. It has
facilitated the opening of around 550,000 IBBPLC accounts, played a crucial role in
building a cashless society, and expanded the reach of banking services to a global
audience.

II. Impact and Achievements

Cellfin has had a significant impact on IBBPLC and the broader banking industry. It has
facilitated the opening of around 550,000 IBBPLC accounts, played a crucial role in building
a cashless society, and expanded the reach of banking services to a global audience.

III. Transaction Limits of Cellfin

Daily
Monthly limit
Sl. Limit
Type
No. Per Amoun Amoun
No. No.
(TRX) t t

N/ N/
1 Balance limit N/A 10 Lac 10 Lac
A A

2 Add Money from Bank A/C 20 5 Lac 10 Lac 300 10 Lac

52
3 Send Money 20 5 Lac 10 Lac 300 10 Lac

4 Bank A/C to Bank A/C 20 5 Lac 10 Lac 300 10 Lac

Bill Pay/Online
5 Purchase/Ticket/Mobil 10 1 Lac 1 Lac 300 3 Lac
e recharge

Cash-out (Branch/Sub-
6 10 5 Lac 5 Lac 300 10 Lac
Branch/Agent)

Cash Withdraw from Bank As per Core

7 A/C 10
Banking Rule

8 Card-less ATM Withdraw 20 20,000 50,000 300 15 Lac

9 Cash by Code Withdraw 20 20,000 50,000 300 15 Lac

10 Remittance Receive 20 N/A N/A 50 N/A

N/
11 Fee/ Merchant Payment NA N/A N/A N/A
A

Table 17 – Transaction Limits of Cellfin (as per IBBPLC, 2024)

3.2.2 IBBL iSmart (iBanking)

IBBL iSmart is one gateway for every internet

banking and facilities provided by IBBPLC. This
app connects every other apps and all of the
services provided by IBBPLC. Which makes it
more efficient and convenient for the customers.
The app helps the user to manage their accounts,
cheques, transfer funds, pay bills/digital payment
and many more.

53
 I. Features of IBBL iSmart

Features of IBBL iSmart

View Accounts Cost Sheet

Search FTT Message iTransfer-EFT
Search FDD Payment VISA Money Transfer
Transaction Summary GP Wallet Refill
Clearing Instrument Status RTGS Fund Transfer
Outstanding Liability Position NPSB Fund Transfer

Positive Pay Instruction Manage SMS Alert

iTransfer Card Trans History
Utility Bill Pay iCashRemit

Card Services Create Tasks

Account No Withdrawal Bulk Recharge
Manage Cheque Buy Air Ticket

Table 18 – Feature of IBBL iSmart (as per IBBPLC, 2024)

II. Charges of IBBL iSmart (iBanking)

Sl. Particulars Charge/Fee

Yearly Charge

1 (A/c statement, message search, transaction Free

summery, instrument status)

2 iRecharge Free

From staff A/C Free

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 to Monthly schemes and MWCD
A/c
3
Free

(any branch)
Other IBBL A/C (same branch) Tk. 5/- per transaction
Fund
0.025% of transaction amount
Transfer to IBBL A/C (to other branch)
Minimum Tk. 5/-, Maximum Tk. 100/-

0.025% of transaction amt.

to other Bank (EFT/ NPSB)
Minimum Tk. 10/-, Maximum Tk.
100/-

to other Bank A/C (RTGS) Tk. 100/- per transaction

Tk. 30/- per trans.

To VISA/
Max amount per transaction:
MasterCard/UPI Card
Tk. 20,000/-

to Khidmah Card/Prepaid/
CellFin Card/mCash Free

1.00 Taka per thousand; minimum Tk.

4 iCash Remit
5/-

As per BTRC or agreement with the

5 Bill Payment
company

6 Duplicate PIN Tk. 50/-

Tk. 1.50% of transaction amount or as

Payment with iPaySafe for IBBL A/C, Card, per
7
mCash, CellFin agreement with the company,
Customer will not pay

Table 19 – Charges of IBBL iSmart - iBanking (as per IBBPLC, 2024)

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 3.2.3 mCash

mCash is the mobile financial services (MFS) platform of

Islami Bank Bangladesh PLC launched in December 2012.
It offers different services through Mobile phone that
includes deposit and withdrawal of cash money, fund transfer
from one account to another, receiving remittance from
abroad, knowing account balance and mini-statement, giving
and receiving salary, mobile recharge and payment of utility
bill, merchant bill payment etc. (as per the IBBPLC website).

I. Features of mCash

• Self-registration through mCash app

• Cash-in, cash-out from mCash point, branch/sub-branch and agent outlets
• Send Money, Mobile Recharge, Merchant Payment
• Receiving foreign remittance
• Receiving government pensions, incentives & stipends
• Payment of salaries to employees
• Payment of educational institution fees
• Merchant payment through QR code

II. Transaction Limits

Daily Limit Monthly limit

No. Amount No. Amount

1 Withdraw 5 25,000/- 20 150,000/-

2 Deposit 5 30,000/- 25 200,000/-

3 Transfer N/ 25,000/- N/ 75,000/-

A A

Table 20 – Transaction Limit of mCash (as per IBBPLC, 2024)

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 III. Recharge Limits

• Minimum amount: Tk. 10/-, Maximum Tk. 1,000/-

• Maximum daily recharge: Prepaid- Tk. 1,000/-, Postpaid- Tk. 5,000

IV. Charges of mCash

From
mCash ATM Agent
Sl. Particulars agent Banking
Branch Outlet
/CRM

1 Cash In - Free

2 Cash Out General 1.8% 1.00% 0.90%

Salary/scholarship/ 0.90% Free Free
1.00%

Foreign Remittance
Govt. Salary with govt. 0.40% Free Free
incentive

3 Transfer From IBBL A/C Free

money
from CellFin
To mCash Tk. 3/- per transaction

To IBBL A/C 1.00%

To IBBL A/C for Salary Tk. 3/- per transaction

/Foreign Remittance

To CellFin 1.00%

4 Payment School/College Fee 25% or as per agreement

Merchant Payment Free for Customer, but as per agreement

with merchant

Table 21 – Charges of mCash (as per IBBPLC, 2024)

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* 15% VAT is included for all types Fees and Charges.

3.2.4 ATM Service

Being one of the largest and leading banks of the country,

Islamic Bank Bangladesh PLC has spread its channels all over
Bangladesh with 2,121 ATM booths, including the remote
areas. IBBPLC is trying to expand its area as much as possible
with different types of banking approaches for the betterment
of the customers and people. With these 2,121 booths,
IBBPLC has the capacity of 770 CRM connectivity with
NPSB & VISA network; throughout 24-hours support
service.

The ATM Services covers these following facilities –

• Cash Withdraw
• Fund Transfer
• Mini Account Statement
• Balance Inquiry

3.2.5 Any Branch Service

Since the early of 2011, all the branches of IBBPLC are connected via online and digital
mediums. Anyone can their account through any branch and may reach through all the other
branches.

The Any Branch services covers these following facilities –

• Cash Deposit: any amount

• Cash Withdraw: up to Tk.10,00,000/- per day
• Fund Transfer: any amount
• Balance Inquiry
• Account Statement
• Paying investment instalment

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3.2.6 SMS Service

Since 2008, IBBPLC has introduced its SMS Banking service in

the country. For this service, customers are required to make
registration of their account; which can be done by any branches
of IBBPLC. SMS Services are applicable only for the online
services of IBBPLC.

I. Given Services

• Multiple Account Registration

• International Push- Pull Facility
• Account Balance
• Mini Account Statement (STM)
• Account Information (ACI)

II. Charges

• SMS alert charge is Tk. 75/- (on half yearly basis)

• SMS will be given for any transaction amount
• Staff Account- free of charges

3.2.7 Cash by Code

Islami Bank Bangladesh PLC has introduced a very unique

service for their customers called IBBL iCashRemit. Through
this service, customers can send money to any person in
Bangladesh who only needs to have a mobile phone to receive
message. The receiver can withdraw cash from any IBBPLC
ATM booths without using any card or bank account.

I. Features of Cash by Code

• Cardless Transaction
• No Bank Account needed for beneficiary

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 • No ATM Card needed
• Secured Transaction
• Code will be active for 24 hours
• Taka 500 or multiply of 500 up to 20,000 for a single transaction

II. Charges

• Send money to any mobile number

• Lowest transaction cost with BDT 1/- (per thousand)

3.2.8 POS Terminal

POS (short for Point-of-Sale) is a machine that receives

payment through banking cards; which facilitates
cashless transactions and gives customers freedom of
moving without cash. Islami Bank Bangladesh PLC is
operating Merchant POS service along with offering
direct POS facilities through its branches and agent
banking system.

I. Features of POS Terminal

• Cash withdrawal up to BDT 3 lac

• Digital payment
• Balance enquiry
• Fund transfer
• PIN Setup

3.2.9 Remittance Card

Islamic Bank Bangladesh PLC has been a great help for the people that are residing in foreign
countries for study, job or other purposes. IBBPLC launched their Remittance Card facilities
for these immigrant customers. Along with the money sending facilities, this card ensures the
Non-Residence Bangladeshi of safe and quick hassle-free money transfer. IBBPL is the largest
remittance provider of Bangladesh, and consecutively have been performing very well in this

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sector. This year in January, 2024 IBBPLC has set a new record by collecting foreign
remittances worth $700 million.

I. Features of Remittance Card

• Cash Withdrawal from ATM booth (up to is BDT 50,000/-)

• Cash Withdrawal from bank (any number of amounts)
• Free of charges

3.2.10 IBBL WhatsApp Banking

IBBPLC has introduced a new time relevant facilities for its customer called IBBL WhatsApp
Banking, which is kind of similar to its SMS banking but in digital approach. This lets the
customer have banking facility more seamlessly.

I. Features of IBBL WhatsApp Banking

• Account Service
• Balance Check
• Card Service
• Live Agent
• Statement
• Branch/ ATM location

3.3 Methodology

This study has been organized and assessed through my internship period at the IBBPLC
branch; which includes many aspects including survey, personal observation, self-learning and
comprehension. Additionally, to assist my claims external materials were also needed which
were collected from many sources.

With a sample size of 70, a survey was conducted on the customers which included a total set
of 14 questions (including some basic questions), in an attempt to gather information and
feedback regarding consumers and their journey with the E-banking services of IBBPLC.

61
Primary Data Source:

Information that is obtained straight from the sources using primary data collection techniques
experiments, surveys, or observations. For this study, some primary data sources were
consulted:

• Discussing face-to-face with the bank representatives and clients

• An online survey (via Google survey)
• Real life experience
• Branch observation

Secondary Data Source:

Secondary data refers to information that has been previously collected and published by other
sources; as in – books, journals, official reports, or online databases. In this study, the
secondary data that have been used:

• IBBPLC official website

• Annual reports of IBBPLC
• Different publications of Bangladesh Bank and Ministry of Finance
• Newspaper articles
• Various books, journals, articles, newsletters, etc.

3.4 Research Questions (Survey Questionnaire)

The Google survey was aimed and designed for the customers with a total of 14 questions along
with multiple choice, open end and checkbox options; that had the potential to bring out the
feedback from the consumers. With a sample size of 60, the survey maintained a standard
policy. The questionnaire that contains the whole research outcomes of the survey is as
mentioned below –

1. What is your gender?

2. What is your age?
3. Your marital status
4. How long have you been a consumer of IBBPLC?

62
 5. How frequently do you use Cellfin, and iSmart or other digital facilities?
6. How easy is it to manage your accounts and credit/debit cards through these apps?
7. How satisfied are you with the ease of making transactions through the digital services
of IBBPLC?
8. Have you encountered any issues while performing fund transfers using these apps?
9. How satisfied are you with the accuracy and timeliness of balance checking features?
10. How safe do you consider Cellfin and iSmart to be in terms of protecting your financial
information and transactions?
11. How often have you experienced fraudulent activities or unauthorized transactions
while using Cellfin and iSmart?
12. If you have used other banking apps, how do you think Cellfin and iSmart compares to
them in terms of convenience & functionality?
13. Would you recommend Cellfin and iSamrt to others?
14. Thank you for your valuable time. Please, give any suggestions if you feel like.

NB: the full questionnaire with additional answer options is attached in the appendix section
of this report.

3.5 Research Outcome

The purpose of this survey was to collect real-time customer feedback on IBBPLC e-banking
facilities. The survey was conducted through Google Surveys, with 14 questions in total
(including some basic questions). Having a sample size of 60, in total 70 responses were
collected via this survey. The research outcomes are solely based on the customer's response,
who took their time to give feedback according to their likings. Hence, no biases are intended
in this report. The following part of this study analysed the data with the help of charts and
ratios.

63
3.5.1 Findings

Figure 8 – Research Outcome (Chart 1)

Based on the responses, IBBPLCs has customers in all aspects. With a ratio of 41.4% male,
35.7% female, 20% prefers not to say, and 2.9% others. Showing, among the 70 participants,
29 participants are male, 25 participants are female, 14 participants prefer not to say, and 2
participants are from others gender. This depicts that, the users among all these genders are
participative.

Figure 9 – Research Outcome (Chart 2)

Based on the responses, IBBPLCs customer ranges cover many ages of people. Having
participants from various ages, where the ratio shows the higher participators are from 31-50
with a rate of 37.1%. Following that, people from 18-30 are most likely to receive services
from IBBPLC with a rate of 25.7%. The response also showed a great participation of elder
64
people who are between 51-70 with a rate of 22.9%; and 14.3% participants are under 18,
indicating they are students. This showcases that, IBBPLC has customers who are mostly
working people, but also serves people from every ages.

Figure 10 – Research Outcome (Chart 3)

This chart indicates the marital status of the consumers of IBBPLC. Which shows that, 47.1%
of the participants are married and 30% are unmarried. 22.9% of the participants prefer not to
say about their marital status. This response showcases that majority of the participators are
married.

Figure 11 – Research Outcome (Chart 4)

In this scenario, the question was made to have a picture on the customers’ connectivity with
IBBPLC. The response show, about 68.6% of the participators are getting their banking
services from IBBPLC for more than 2 years, which is very good for the bank’s stability. A
65
number of 17.1% of them are with IBBPLC for about 1-2 years and the other 14.3% are for
less than a year. The large number participators that are receiving banking facilities for more
than 2 years shows a positive sign for IBBPLC.

Figure 12 – Research Outcome (Chart 5)

This question was aimed to get the current intel on consumers’ frequency of using the most
common e-banking apps of IBBPLC (as in Cellfin and iSmart). As the responses portrays is
order – 42.9% participators use these apps most frequently, 21.4% participators once in a month
and 35.7% participators do not use these apps so frequently. As in, these ratios show that
majority of the participators use these apps in their common daily activities.

Figure 13 – Research Outcome (Chart 6)

This chart shows the response regarding the convenience of using the apps, and the cards
through them. Where the percentage shows that – 37.1% of the participators chose to stay
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neutral, 35.7% of the participators believe the apps are easy for them, and 27.1% of the
participators think these apps are very easy for them. Altogether, the rate shows positive results
with very large probabilities.

Figure 14 – Research Outcome (Chart 7)

In this scenario, the question was designed to know about customers’ satisfaction with
IBBPLCs e-banking services. Where the answers show that – 30% of the responders are very
satisfied, 44.3% of the responders are satisfied, and 25.7% of the responders wishes to stay
neutral. This chart depicts that these numbers are positive sign that the apps of IBBPLC are
serving their purpose.

Figure 15 – Research Outcome (Chart 8)

This particular question was aimed to gather data regarding the apps malfunctioning issues that
customers face while interacting. According to the collected data, about 72.9% responders
67
expressed they sometimes faces issues and 25.7% responders said they face issues very often.
This result shows a major concern that, these apps need internal troubleshooting and proper
managements by the IT authorities of IBBPLC.

Figure 16 – Research Outcome (Chart 9)

To know the customers’ satisfaction with the accuracy and balance checking features.
Regarding which the chart shows, 51.4% of the participators are satisfied, 24.3% of the
participators are very satisfied and 24.3% of the participators are neutral with the services. In
case of this scenario, it could be said that IBBPLC is doing pretty good job but still the
monitoring should be done very frequently to keep the mark.

Figure 17 – Research Outcome (Chart 10)

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Through this question the customers’ perspective of perceiving Cellfin and iSmart safe enough
of keeping their resources were gathered. Where they expressed these apps to be safe with a
rate of 45.7%, very safe with a rate of 40% and 14.3% stayed neutral with their response. This
scenario depicts that the customer satisfaction rate is relatively higher, which should motivate
the authorities to carry the remark on.

Figure 18 – Research Outcome (Chart 11)

In this chart, the question to the customers’ regarding their encounter with fraudulent or
scamming activities were asked to have a better picture of the services. In this regard, the
responders responded their opinions with a rate of – 38.6% of the responders never faced
anything, 35.7% of the responders barely faced anything, and 25.7% of the responders
expressed they sometimes faced these issues. However, these issues should be looked into with
serious concerns, these affect the banks services and the customers greatly.

69
 Figure 19 – Research Outcome (Chart 12)

Though this question the competitive state of the e-banking services of IBBPLC in terms of
convenience and functionality were analysed. Whereas in response, the customers expressed –
41.4% of the participator felt IBBPLCs are better, 31.4% of them said average and 27.1% of
them felt these apps are almost similar. Hence, the bank should stay up to the mark by taking
necessary measures to keep their services updated and consistent.

Figure 20 – Research Outcome (Chart 13)

Lastly through this question customers’ opinions was asked if they would like to recommend
the app to others. Where in response they stated – 54.3% were positive, 37.1% were unsure
and 8.6% were negative with their feedback. This depicts that, even though majority of the

70
 answers were positive, IBBPLC should take this as their motivation to keep marching forward
to enhance their performance.

3.5.2 Data Analysis (SPSS)

Frequencies

Statistics

How frequently

do you use

How long have Cellfin, and

you been a iSmart or other

What is your What is your Your marital consumer of digital

gender? age? status IBBPLC? facilities?

N Valid 70 70 70 70 70

Missing 0 0 0 0 0

Statistics

How satisfied Have you How satisfied How safe do

How easy is it are you with the encountered are you with the you consider

to manage your ease of making any issues while accuracy and Cellfin and

accounts and transactions performing timeliness of iSmart to be in

credit/debit through the fund transfers balance terms of

cards through digital services using these checking protecting your

these apps? of IBBPLC? apps? features? financial

71
 information and

transactions?

N Valid 70 70 70 70 70

Missing 0 0 0 0 0

Statistics

If you have

How often have used other

you banking apps,

experienced how do you

fraudulent think Cellfin

activities or and iSmart

unauthorized compares to Would you

transactions them in terms recommend

while using of convenience Cellfin and

Cellfin and & iSamrt to

iSmart? functionality? others?

N Valid 70 70 70

Missing 0 0 0

72
Frequency Table

What is your gender?

Cumulative

Frequency Percent Valid Percent Percent

Valid Female 25 35.7 35.7 35.7

Male 29 41.4 41.4 77.1

Others 2 2.9 2.9 80.0

Prefer not to say 14 20.0 20.0 100.0

Total 70 100.0 100.0

What is your age?

Cumulative

Frequency Percent Valid Percent Percent

Valid 18-30 18 25.7 25.7 25.7

31-50 26 37.1 37.1 62.9

51-70 or more 16 22.9 22.9 85.7

under 18 10 14.3 14.3 100.0

Total 70 100.0 100.0

73
 Your marital status

Cumulative

Frequency Percent Valid Percent Percent

Valid Married 33 47.1 47.1 47.1

Prefer not to say 16 22.9 22.9 70.0

Unmarried 21 30.0 30.0 100.0

Total 70 100.0 100.0

How long have you been a consumer of IBBPLC?

Cumulative

Frequency Percent Valid Percent Percent

Valid 1-2 years 12 17.1 17.1 17.1

Less than a year 10 14.3 14.3 31.4

more than 2 years 48 68.6 68.6 100.0

Total 70 100.0 100.0

How frequently do you use Cellfin, and iSmart or other digital facilities?

Cumulative

Frequency Percent Valid Percent Percent

Valid Multiple times in a month 30 42.9 42.9 42.9

Not so frequent 25 35.7 35.7 78.6

Once a month 15 21.4 21.4 100.0

Total 70 100.0 100.0

74
 How easy is it to manage your accounts and credit/debit cards through

these apps?

Cumulative

Frequency Percent Valid Percent Percent

Valid Easy 25 35.7 35.7 35.7

Neutral 26 37.1 37.1 72.9

Very easy 19 27.1 27.1 100.0

Total 70 100.0 100.0

How satisfied are you with the ease of making transactions through the

digital services of IBBPLC?

Cumulative

Frequency Percent Valid Percent Percent

Valid Neutral 18 25.7 25.7 25.7

Satisfied 31 44.3 44.3 70.0

Very satisfied 21 30.0 30.0 100.0

Total 70 100.0 100.0

Have you encountered any issues while performing fund transfers using

these apps?

Cumulative

Frequency Percent Valid Percent Percent

75
Valid Never 1 1.4 1.4 1.4

Sometimes 51 72.9 72.9 74.3

Very Often 18 25.7 25.7 100.0

Total 70 100.0 100.0

How satisfied are you with the accuracy and timeliness of balance checking

features?

Cumulative

Frequency Percent Valid Percent Percent

Valid Neutral 17 24.3 24.3 24.3

Satisfied 36 51.4 51.4 75.7

Very satisfied 17 24.3 24.3 100.0

Total 70 100.0 100.0

How safe do you consider Cellfin and iSmart to be in terms of

protecting your financial information and transactions?

Cumulative

Frequency Percent Valid Percent Percent

Valid Neutral 10 14.3 14.3 14.3

Safe 32 45.7 45.7 60.0

Very safe 28 40.0 40.0 100.0

Total 70 100.0 100.0

76
 How often have you experienced fraudulent activities or unauthorized

transactions while using Cellfin and iSmart?

Cumulative

Frequency Percent Valid Percent Percent

Valid Barely 25 35.7 35.7 35.7

Never 27 38.6 38.6 74.3

Sometimes 18 25.7 25.7 100.0

Total 70 100.0 100.0

If you have used other banking apps, how do you think Cellfin and iSmart

compares to them in terms of convenience & functionality?

Cumulative

Frequency Percent Valid Percent Percent

Valid Almost similar 19 27.1 27.1 27.1

Average 22 31.4 31.4 58.6

Better 29 41.4 41.4 100.0

Total 70 100.0 100.0

Would you recommend Cellfin and iSamrt to others?

Cumulative

Frequency Percent Valid Percent Percent

Valid Maybe 26 37.1 37.1 37.1

No 6 8.6 8.6 45.7

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 Yes 38 54.3 54.3 100.0

Total 70 100.0 100.0

Bar Chart

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84
3.5.3 Limitations of the Study

The survey is made on a small population, as the sample size was 60 which is the minimum
size as per the research principle; where the collected response was 70. Likely, this number
does not represent the whole customer scenario of the market. However, this helps to indicate
the direction where the market is heading as well as customers' current needs. IBBPLC has a
large number of customers who are at their peak age and senior citizens. Being mindful of the
elder people’s condition, considering the state of Bangladesh, research on these people would
be tougher to do. Which kind of affects the research’s criteria and aim.

Additionally, IBBPLC has some confidentiality restraints, which kind of affected the relevancy
of data. The world of e-banking/online banking is changing constantly, which means the
current study may not apply for a long time. Also, due to some vague responses from the
participants, it was rather hard to dictate a direction. However, as an intern and lack of
experience in the field, the studies may deprive me of relevancy and professionalism.

Also, Bangladeshi people do not tend to respond to the research mediums (survey) and still are
not accustomed to participation in such initiatives. Hence, it is not so easy to collect data about
the people as the country is not research-friendly.

3.6 Conclusion

Ever since the journey, Islami Bank Bangladesh PLC has proven to be one of the most
prominent banks in the country’s market. With time, IBBPLC has successfully adapted to the
contemporary baking system and served the people with utmost dedication.

With the broad use of the e-banking system and innovative approaches, IBBPLC has kept its
purpose. IBBPLC successfully turned Cellfin into one of the most transparent apps in current
time. Also, IBBL iSmart is an all-in-one gateway for all the services of the bank. Being the
biggest remittance earner of Bangladesh for consecutively many years, IBBPLC has managed
to maintain its steady performance by providing its customers with digital facilities like
Remittance Cards, ATM Service, Cash by Code, POS Terminal, WhatsApp Bangling, Any
Branch Service etc.

The survey result has pictured a portion of the total customer's review and satisfaction on the
e-banking services. Which mostly turned out positive and average. However, some of the

85
feedback pointed out some lacking of these apps that need to be fixed as fast as possible.
Overall, customer satisfaction is the utmost priority of IBBPLC, which will eventually and
hopefully be carried on through proper maintenance and monitoring.

Through its 41 years of legacy, IBBPLC has emerged from the local market to the global.
Along with corporate responsibilities, IBBPLC has contributed to society and people through
its CSR activities. Following its major objective under the light of Islam, IBPLC hopes to
eradicate social injustice, inequity, hunger, poverty, exploitation and negative things from the
country. Hopefully, IBBPLC will dedicate itself to creating the flourishing Bangladesh of the
people’s dreams, while creating its image across the globe.

3.7 Recommendation

• IBBPLC can take an approach on making online community sites to have a better look
at the customer’s feedback
• Studying through social media sites or groups may give IBBPLC real time data on the
customers
• The apps need to be monitored and upgraded very frequently
• The apps capacity should be increased considering the huge number of clients
• IBBPLC should promote more about their services including e-banking tools
• Using creativity and trendy concepts may increase the e-banking section
• IBBPLC should try to work on taking initiatives with the young generation
• IBBPLC should take initiatives on promoting its e-banking services in the rural and
remote areas people

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IBBPLC Annual Reports and Financial Reports – 2022, 2023, 2024

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