Internship Report On Dubai Islamic Bank.docx

INTERNSHIP REPORT ON DUBAI ISLAMIC BANK Table Of Content

S.NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

PARTICULARS

PAGE NO.

Brief history Nature of Organization Awards and achievements Business volume Products Services Pestle Analyses Contribution of Org.toword economic development Organizational hierarchy No. Of employees Main offices Introduction Of all departments Comments on Organization Internee Work Details of training

6 7 11 10 12 13 16 17 18 19 20 22 27

27 28

16

Weekly time table

29

17

Account opening department

37

19

Remittance department

49

20 21

Clearing department Financial Statement

32 42

22

Analysis

42

23

Vertical FINANCIAL ANALYSIS

44

24

Horizontal Analysis

47

25

Ratio Analysis

49

26

Liquidity Ratio

49

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK

27

Leverage Ratio

51

28

Profitability Ratio

54

29 30

Activity Ratio SWOT ANALYSIS

60 61

31

Internal Analysis

62

32

Strengths

63

33

Weaknesses

63

34

External Analysis

64

35

Opportunities

64

36 37

Threats CONCLUSION

64 65

38

RECOMMENDATIONS

64

39

REFRENCES

67

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK INTERNSHIP REPORT OF DUBAI ISLAMIC BANK

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK

ACKNOWLEDGEMENT

First of all I am thankful to "ALMIGHTY ALLAH" Who gave me the strength, patience, courage and enthusiasm needed to write and complete this report, and countless salutations to upon the Holy Prophet Muhammad (PBUH), the sea of knowledge who has guided His Ummah to seek knowledge from cradle to grave. Then to my friends who assisted me in this effort and we worked daylong to accomplish this assignment. I have a debt of gratitude to all my teachers who taught me throughout my academic career. The preparation of this report was a massive undertaking but the highly competent and experienced bank.

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK

EXECUTIVE SUMMARY As per the requirements for the degree of M.com at NCBA&E, I got an opportunity to get six weeks internship exposure Dubai Islamic Bank. During my internship I was rotated in the various departments in order to get in depth idea of how the bank functions. This report thoroughly outlines and explains my observations, findings and analysis and my knowledge of the banking sector in general and Dubai Islamic Bank in particular. In this report, there is an introduction of Dubai Islamic Bank. In introduction, there is history of Dubai Islamic Bank, strong commitment and loyal service, highly trained professionals, and credit rating. The report also includes the details of the products offered by DIBPL which includes Takaful plan and other Islamic Compliance products. This report also focuses the general banking of DIBPL which includes Cash department, Remittances section, Account opening, Debt cards etc. Subsequent to it this report contains my experience and learning that what I have learned from this internship and what was my experience regarding this internship. The report also contains my analysis that I scrutinize in the organization by using two method SWOT and Financial analysis. With the help of these methods I have some suggestions and recommendations to improve the performance of the Bank, which also mentioned in this report.

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Part I 1. Introduction

Thirty years ago, Dubai Islamic Bank ('DIB') created history by becoming the world's first Islamic Bank. Today, Islamic banking has become one of the fastest growing economic sectors with over 300 financial institutions, with assets estimated at over US $300 billion providing Islamic financial services. Despite huge growth in the sector DIB continues to be the industry pioneer and undisputed market leader to date. Since its inception, DIB has evolved from a retail bank to a fully-fledged bank catering to almost all the requirements of its customers in providing Sharia-compliant solutions to major local and international companies. It has constantly upgraded its services to private individuals, who remain a highly valuable element of DIB's customer base. By combining the best traditional Islamic values with high-standard technology and innovation, DIB is committed to not only fully comply with the principles of Shari ’a in all its financial dealings but to also facilitate its customers who venture into the world of Islamic banking in such a befitting way that they would feel reaping the best rewards of both the worlds. For its outstanding performance and contribution to Islamic financing, DIB received the Best Islamic Bank in the Middle East Award (2006) by both...

2. OVERVIEW OF THE ORGANIZATION: Dubai Islamic Bank is the leading Islamic bank operating in Pakistan. Its balance sheet size is improving switch the passage of time. It has redefined its role and has moved from a public sector organization into a modern Islamic bank. The Bank's services are available to individuals, corporate entities. While it continues to act as investor of public funds and it has diversified its business portfolio and is today a lead player in the debt equity market, corporate investment banking, retail and consumer banking, treasury

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK services and is showing growing interest in promoting and developing the country's small and medium enterprises and at the same time fulfilling its social responsibilities, as a corporate citizen. In today's competitive business environment, DIBPL need to redefine its role and shed the public sector bank image, for a modern Islamic bank. It is listed in Securities and Exchange Commission of Pakistan in 2006. Dubai Islamic Bank is today a progressive, efficient, and customer focused institution. It has developed a wide range of consumer products, to enhance business and cater to the different segments of society. Some schemes have been specifically designed for the low to middle income segments of the population. It has taken various measures to facilitate overseas Pakistanis to send their remittances in a convenient and efficient manner. More recently it has started Electronic Home Remittances Project. This project introduces technology based system to handle inward remittances efficiently, by ensuring that the Bank's branches keep a track of the remittance received from abroad till its final receipt. A number of initiatives have been taken, in terms of institutional restructuring, changes in the field structure, in policies and procedures, in internal control systems with special emphasis on corporate governance, adoption of Capital Adequacy Standards under Basel II framework, in the up gradation of The IT.

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK 3. HISTORY OF DUBAI ISLAMIC BANK PAKISTAN LTD: Thirty years ago Dubai Islamic Bank created history by becoming Worlds first Islamic Bank. Today Islamic Banking has become one of the fastest growing economic sectors with over 300 financial institutions; with assets estimated over at 300 billion US Dollar providing Islamic Financial Services. Despite huge growth to the sector DIB is continued to be the pioneer and leader to date. Since its inception DIB has evolved retail bank to a fully-fledged bank catering to almost all the requirements of the customers in providing to Sharia Compliant solutions locally and internationally. It has constantly upgraded its services to individuals and companies who always remain a valuable asset. By combining the best Islamic traditional values with high standards technology and innovation, DIB is committed to comply with not only fully transactions of financial dealings. DIB is also committed to provide customer-satisfaction oriented job. For its outstanding performance and contribution for Islamic financing, DIB received the best Islamic Bank award in the Middle East Award 2006; by both Euro moneys Islamic Finance Weekly and Gulf Wealth Forum. DIB has also awarded the bank of the year 2006 Banker Awards. DIBPL has started its operations since 2005. At that time the scale of business and number of branches were very short. But just within the time period of five years, now DIB has an extensive network of branches, a wide range of Islamic Compliant Products, well-managed communication system and good return from operations. Nature of the organization: Dubai Islamic Bank Pakistan Ltd. is a public Organization. It implements the policies of SBP. Its basic objective is to maximize the profit. It has major impacts on Pakistan economy with special emphasis on fostering Pakistan's economic growth through aggressive and balanced lending policies, technologically oriented products and services offered through its network of branches. It deals with Revenue, collection and payments of salaries. It is a complete Islamic, retail and corporate bank as well.

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The Dubai Islamic Bank is an Islamic institute which offers a variety of products according to the Sharia principles and instructions. All the products and services are regulated by Sharia Board. If they find someone violating the rules, they penalize. The Dubai Islamic Bank makes different adjustments to update business operations.The Bank has also played an important role in financing the country’s growing trade, which has expanded through the years as diversification took place.

Vision: “To be the most

progressive

Islamic Financial

Institution

in the World”

Mission: “To maintain and improve our position as the world’s leading Islamic bank through unsurpassed customer service, innovation, growth and consistent employee engagement.”

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK 5.2.3BUSINESS VOLUME: Dubai Islamic Bank’s business volume is expanding day by day and now it becomes leading bank of the Islamic Banking Sector. The authorized capital of the Bank is Rs.6776 million divided into ordinary shares of Rs 10 each. FIVE YEARS PERFORMANCE OF DIB Table: Business Volume

Years

2009

2010

Total Assets

497

3197884 48199768 63509562 80256612

Deposits (Rs in Million)

-

-

-

-

-

Advances (Rs in Million)

-

-

-

-

-

Investments

-

5945370 12937179 21334833 25044279

Shareholder' Equity

-

-

6244902

6793362

6929614

-

-

316129

499506

211897

-

-

190486

344724

136860

-

-2.09

-0.89

-0.35

0.38

Pre-Tax Profit/ (Loss) (Rs in Million)

After-Tax Profit/ (Loss) (Rs in Million)

Earning Per Share (Rs)

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2011

2012

2013

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Number of Branches

5

10

17

25

36

Number of Employees

120

225

350

470

722

RWARDS\ACHIVEMENT Dubai Islamic Bank (DIB) has been awarded the “Best Islamic Bank”, “Best Innovative Retail Bank”, “Best Innovative Islamic Bank in for the year 2014” by the Global Banking and Finance Review (GBAF), one of the worlds’ leading global banking and finance online publications. It is worth mentioning that such awards are only granted to members of all sizes in the Global Financial Community whose performance reflect innovation, achievement, strategy, progressive and inspirational changes and who are prominent in particular areas of expertise and excellence within the financial world.

The “Best Islamic Bank 2014” award has come in recognition of DIB’s efforts and progress in implementing an integrated strategic plan for the development of all its operations and sectors.These efforts have positioned DIB among the fastest growing banks in the Jordanian market. Being a leader in its home market and having been expanding globally in order to drive growth and sustain future profitability, the award came to celebrate excellence and proficiency in their purest form. “Best Islamic Bank” award was created based on the Bank’s best-in-class Islamic financial solutions and services and it shines a spotlight on financial performance, profitability, market share and assets. Dubai Islamic Bank also continues to innovate and strive for greater operational efficiency through enhanced risk management and technology. The second award; “Best Innovative Retail Bank” was granted in recognition of the innovative role the Bank has played in anchoring Jordan’s drive towards a more technology-oriented banking retail solutions and products offered to respond to customers’ financial needs and requirements.

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK Being known for its hi-tech infrastructure, e-branches, efficient e-banking products and services and Internet banking facilities that provide access to external payment systems, DIB was able to further enhance its image as the best client-focused bank and proved to be the fastest growing network. As for the “Best Innovative Islamic Bank”, the awardwas granted to DIB for implementing cutting edge Islamic banking products and services that have long formed an integral part of DIB’s business strategy. As a result, the bank boasts one of the most complete product portfolios not just in Jordan, but in the world of Islamic banking, spanning from plain vanilla corporate financing, project finance, syndications, transactional banking, Sukuk, personal finance, investments, and a variety of other banking products and services to meet the needs of the bank’s segmented client base both in corporate and person 5.2.4PRODUCTS OF DIBPL: Products of bank include all those services which a customer can use effectively in his general and business. Dubai Islamic Bank Pakistan branch offers a wide range of banking services to public and private sector corporations, partnerships, individuals and others. Current Account: Dubai Islamic Bank Pakistan Ltd. is offering current account facility for its valued customers. This type of account is suitable for businessmen and those customers who need financing with regular intervals because they make receipts and payments in large quantity. Regular Savings Account: DIBPL is offering another type of account which is named by regular savings account. DIBPL is paying profit on this type of account according to volume of deposit. And another attracting option is that profit is offered on monthly, quarterly, semi-annually and annually basis. Saving Plus Account:

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK Another type of account which DIBPL is offering is saving plus account. On this type of account DIBPL is giving profit on comparatively higher rates than regular. Saving Special Account: This is another type of account is offering by DIBPL to facilitate its valued customers. This type of account has some special characteristics as compared to regular and plus. The profit margin is higher than other types of accounts. Fixed Deposit/ Term Deposit: DIBPL is offering fixed deposit account according to the Sharia principles. Here in fixed deposit account deposited amount is invested and finally share of profit or loss is distributed between bank and customer. SERVICES OF DIBPL: Services are output of the firm, which are in intangible form and the back bone of any organization to earn profit. However, there are some basic services which DIBPL, branch at present offers to his customers include: 1.

Receipts of customer's deposits

2.

Collection of his cheque drawn on other banks

3.

Making payments through cheque drawn on it

4.

Making remittances

5.

Foreign trade service

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK International banking: Dubai Islamic Bank Pakistan Ltd. is at the forefront of international banking in Pakistan, which is proven by the fact that DIBPL has its branches in all of the major financial capitals of the world. Additionally, we have recently set up the Financial Institution Wing, which is placed under To effectively manage DIBPL exposure to foreign and domestic correspondence manage the monetary aspect of DIBPL’s relationship with the correspondents to support trade, treasury and other key business at herebycontributing to the bank’s profitability the Risk Management Group.. DEMAND DRAFTS: It is a safe, speedy and reliable way to transfer money; customers can now purchase DIBPL’s Demand Drafts at very reasonable rates. Any person whether an account holder of the bank or not, can purchase a Demand Draft from a bank branch. MAIL TRANSFERS: Money is safely and quickly moved by using DIBPL Mail Transfer service. And DIBPL also offered the most competitive rates in the market. PAY ORDER: DIBPL provides another reason to transfer money using its facilities. Pay orders are a secure and easy way to move money from one place to another. And as usual, charges for this service are extremely competitive. TRAVELER'S CHEQUES: 1. Negotiability: Pak Rupees Traveler’s Cheques are a negotiable instrument.

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK 2.Validity: There is no restriction on the period of validity. 3.Availability: At 36 branches of DIBPL all over the country 4.Encashment: At all branches of DIBPL 5.Limitation: No limit on purchase. 6.Safety: DIBPL Traveler’s Cheques are the safest way to carry money. LETTER OF CREDIT: DIBPL is committed to offering its business customers the widest range of options in the area of money transfer. In a commercial enterprise Letter of Credit service is just what customers are looking for. With competitive rates, security, and ease of transaction, DIBPL Letters of Credit are the best way to do business transactions. Saving Special Account: This is another type of account is offering by DIBPL to facilitate its valued customers. This type of account has some special characteristics as compared to regular and plus. The profit margin is higher than other types of accounts.

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK Fixed Deposit/ Term Deposit: DIBPL is offering fixed deposit account according to the Sharia principles. Here in fixed deposit account deposited amount is invested and finally share of profit or loss is distributed between bank and customer. 5.2.5 PESTL Analysis: Political: Factors are basically to what degree the government intervenes in the economy. Specifically, political factors include areas such as tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit bids) Economic: Factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm's capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy. Social : Factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates Technological: Factors include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry,

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation.

Legal: Legal: Various laws such as discrimination law, consumer law, antitrust law and employment law can affect how DIB operates, its costs, and the demand for DIB’s products.

5.2.6 Contribution of organization toward economic development: DIB also invests its deposits in SME loans, which stimulates business activities in economy. UBL is 2nd largest private bank in Pakistan. It is growing gradually every year. Profit of DIB in last five years is given in table below:

Year

Profit Percentage 43.9%

2008 12.2% 2009 10.3% 2010 11.9% 2011 18.7% 2012 DIB contributes in economic development of Pakistan in following ways:

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK 

DIB invests its deposits in investments such as home loans, agriculture loans, auto

loans, buying shares and credit cards. This ultimately increases the capital formation in the economy. 

DIB offers its products and services like Business Partner Plus Account, Tezraftar

Cash, and Tezraftar Account Transfer, which designed for business persons. Availability of such helpful products and services in business help in stimuli trade activities in economy. 

DIB provides agriculture loans to farmers, which increases productivity of

agricultural good in economy 5.3Organizational Structure: 5.3.1Organizational

hierarchy chart:

BOARD of director

operational manager

officers

Prisedent

Branch manager

clerical staff

vice president

District manager

Regional chief

Regional manager

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5.3.2

Number of employees: 

Overall number of employees working at DIBare listed below according to last five years.

5.3.2 NUMBER OF EMPLOYEES Year

Number of Employees

2009

9700

2010

11379

2011

11999

2012

12346

2013

12967

Number of emolyees at , Gujrat branch , in which I have been working as internee, is seventeen 5.3.3 Main offices: Main offices to which DIB branch is attached are listed below: DIB Hassan chamber pak ltd. Block 7 clifton Karachi-Pakistan.  F10 Markaz block 5, F10 Markaz, Islambad  Model town Gujrawala plot 85 model town Gujranwala  Mirpur plot 123 city center tower Mir pur azad Kashmir  Sialkot 247/248 Sadar bazar Sialkot cantt.

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK  Multan cant 10 B Oold Bhawalpur road multan

5.3.3

INTRODUCTION OF DEPARTMENTS:

I worked in Dubai Islamic Bank Pakistan Limited as an internee for two months. During internship, I rotated in different departments where I learned about these departments. The branch manager monitors the whole branch to develop efficiency and effectiveness. The different department's details are listed below. There are seven departments are operating in Branch. Deposit section: In deposits section, various kinds of deposits are made in routine and reported to head office. The deposit section is very efficient and active. Remittance Section: In remittances section deals with external and internal remittances to facilitate the customers. Remittances are transferred through pay order, bank draft and telegram transfer. Clearance Section: In clearance department, cheques are cleared through clearing house by using the facility of NIFT. Advances Department: In advances department, bank makes different kind of advances and offer attractive Islamic compliance products to attract customers. Other departments:

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK In other departments, HR department functions the recruitment, performance appraisal, training and other relevant jobs. In cash department, the collection and payment of cash is made. Pay order, bank draft and telegram transfer

1-CASH DEPARTMENT: Cash department perform the functions: Receipt: The money, which either comes or goes out from the bank, its record should be kept. Cash department performs this function. The deposits of all customers of the bank are controlled. LOCAL CHEQUE: Means of ledger accounts. Every customer has its own ledger account and has separate ledger cards. Payments: It is a banker’s primary contract to repay money received for this customer’s account usually by honoring his cheque. Types of Cheques: Some specific types of cheque are being entertained in the clearing department of DIBPL.By local cheque we mean collection of cheque from the banks which are the members of the clearinghouse and which are located within the city. OUT STATION CHEQUE:

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK By out station cheque we mean collection of cheque from the banks which are situated outside the city. 2-CLEARANCE DEPARTMENT: A clearing house is an association of commercial banks set up in given locality for the purpose of interchange and settlement of credit claims. The function of clearinghouse is performed by the central bank of a country by tradition or by law. In Pakistan, the clearing system is operated by the SBP. If SBP has no office at a place, then NBP, as a representative of SBP act as a clearinghouse. The easy, safe and most efficient way is to offset the reciprocal claims against the other and receive only the net amount owned by them. This facility of net interbank payment is provided by the clearinghouse. The total represents the representatives of the local commercial banks meet at a fixed time on all the business days of the week. The meeting is held in the office of the bank that officially performs the duties of clearinghouse. The representatives of the commercial banks deliver the cheques payable at other local banks and receive the cheques drawn on their bank. The cheques are then sorted according to the bank on which they are drawn. A summary sheet is prepared which shows the names of the banks, the total number of cheques delivered and received by them. Totals are also made of all the cheques presented by or to each bank. The difference between amount to be paid by a particular bank and the amount to be received by it each bank then receives the net amount due to it or pays the net amount owed by it. Types of Clearing: In-word clearing Books: The bank uses inward clearing register for the purpose of recording all the details of the cheques that the other banks have issued on the bank. NCBA&E GUJRAT CAMPUS

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK Out Word Clearing : The bank uses outward clearing register for the purpose of recording all the details of the cheques that the bank has delivered to other banks.

3-ADVANCES DEPARTMENT DIBPL give loans to another important department in the bank are remittances. People send their money to the other persons and organizations through various way i.e. Bank draft, Telegraphic Transfer, Mail Transfer, Coupons, Govt. Draft and Western Union Money Transfer etc. It works both inward and outward. DIBPL offers the following forms of remittances the borrowers for different purposes. These loans are given for various sectors for different periods. Small Finance, Cash Finance, Personal Loans, Demand Finance, Running Finance, Corporate Finance, Export Import Financing, House Building Finance. 4-REMITTANCE DEPARTMENT: 

Demand Draft



Telegraphic Transfer



Pay Order



Mail Transfer



Safe custody of specimen signature book



Preparation of periodical statements



Any other work/ duty assigned by manager

5-DEPOSITS DEPARTMENT:

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK Customers keep their savings in PLS Saving Accounts and businessmen save their money in bank Current Accounts. DIBPL gives profit on saving accounts and special saving accounts. 6-FOREIGN EXCHANGE DEPARTMENT: This department mainly deals with the foreign business. The main functions of this department are: a)

L/C dealing.

b)

Foreign currency accounts dealing.

c)

Foreign Remittance dealing.

DIBPL is committed to offering its business customers the widest range of options in the area of money transfer. If you are a commercial enterprise then our Letter of Credit service is just what you are looking for. With competitive rates, security, and ease of transaction, DIBPL Letters of Credit are the best way to do your business transactions This department deals with the foreign currency accounts which mainly include dollar account, euro account etc. 7-PRIVILEGE BANKING DEPARTMENT Online Banking: This department is functioning only in online branches in the bank. This is a fast track banking system in modern banking. DIBPL is also trying to enhance this facility for their customers. Utility Services: Keeping in view the difficulties faced by general public DIBPL has taken the initiative to provide service for collection/receipt of utility bills on behalf of WAPDA, Sui Gas and

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK PTCL from 9.00 am to 5.00 pm all the branches throughout the countries are observing this practice to ease the long queues lined-up at the counters of banks. 8-COMPLIANCE DEPARTMENT ObjectivesRole of branch compliance department is to reconcile the prescribed frequencies, investigate long pending reconciliation item, and ensure correct treatment every half year and clearing system service branch-in major cities. Internal control is the integration of the activities, plans, attitudes, policies and efforts of the people of the bank working together to provide reasonable assurance that the organization will achieve itsand mission. 9-HUMAN RESOURCES MANAGEMENT DEPARTMENT: Human Resources Management Department works for the betterment of the employees. Enhances skills, training management, service benefits, wages, medical facilities, staff loans are basic functions of this department. 10-INFORMATION TECHNOLOGY DEPARTMENT: Bank’s data collection and information system run by Regional Data Collection Center. This department manages staff training programs regarding computer. ISLAMIC BANKING: The year 2005 marked the first year of Islamic banking operations. During the year under review, in addition to active participation in various Sukuk transactions, DIBPL has extended its Islamic Banking Operations Network Loan Structuring and Syndication: Dubai Islamic Bank Pakistan Ltd. leadership in loan syndicating stems from ability to forge strong relationships not only with borrowers but also with bank investors. Because syndicate partners understand the asset criteria, DIBPL help borrowers meet substantial

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK financing needs by enabling them to reach the banks most interested in lending to their particular industry, geographic location and structure through syndicated debt offerings. Syndication capabilities are complemented by capital strength and by industry teams, who bring specialized knowledge to the structure of a transaction. Cash Management Services: With DIBPL Cash Management Services (in process of being set up), the customer’s sales collection will be channeled through networking of DIBPL branched spread across the country. This will enable the customer to manage their company’s total financial position right from desktop computer. They will also be able to take advantage of outstanding range of payment, ejection, liquidity and investment services. In fact, DIBPL is committed to provide everything, which takes to manage cash flow more accurately. SHORT TERM INVESTMENTS: DIBPL now offers excellent rates of profit on all its short term investment accounts. Whether the funds are invested for 3 months or 1 year, DIBPL’s rates of profit are extremely attractive, along with the security and service only DIBPL can provide. EQUITY INVESTMENTS: DIBPL has accelerated its activities in the stock market to improve its economic base and restore investor confidence. The bank is now regarded as the most active and dominant player in the development of the stock market. DIBPL is involved in the following: 

Investment into the capital market



Introduction of capital market accounts (under process)



DIBPL’s involvement in capital markets is expected to increase its earnings,

which would result in better returns offered to account holders. 5.3.5 Comments on organizational structure: 

DBI has strong organizational culture

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK 

Span of control is clear.



Emplyees are empowered

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Part II 5.4Internee work : 5.4.1 Introduction of Branch: I have done my internship at DIB. 5.4.2Details Of Supervisors: During my internship I have been working mainly under two supervisors. Their names and designations in the branch are as under:

Sr.No

Name of supervisors

Designations

Work assigned

1.

Kaikus Mir

Branch manager

Foreign remmitance

2.

Usman Munawar

Operational manager

Account opening

3.

Sara Zaib

Operations Officers

Clearing cheque

5.4.3Duration of My Internship Program: 1st Week Date

Day

Clearing Department: Internship Activity

31-10-2014

Monday

How clearing is done and its process

01-11-2014

Tuesday

Types of Clearing,OBC clearing

02-11-2014

Wednesday

Inword Clearing, Outward Clearing

03-11-2014

Thursday

Intercity Clearing, Local Clearing

04-11-2014

Friday

Data Recorded for Internship Report

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK

2rd Week Date

Operations Department: Day

Internship Activity

31-10-2014

Monday

Courier registers

01-11-2014

Tuesday

Cheque Book Entry

02-11-2014

Wednesday

Demand Draft

03-11-2014

Thursday

How to fill Deposite Slip

04-11-2014

Friday

Data Recorded for Internship Report

3rd Week Date

Department: Operations Day

Internship Activity

31-10-2014

Monday

Deposists slip for cheque

01-11-2014

Tuesday

Travelers cheque on deposists slip

02-11-2014

Wednesday

Envelop categories

03-11-2014

Thursday

Categories of Account

04-11-2014

Friday

Data Recorded for Internship Report

4th WeekRemittance Department: Date

Day

Internship Activity

31-10-2014

Monday

Process of Remittances,Foreign remittances

01-11-2014

Tuesday

Demand Draft,Pay Order

02-11-2014

Wednesday

Foreign Demand,Travelers cheque

03-11-2014

Thursday

Foreign currency account and its charges

04-11-2014

Friday

Data Recorded for Internship Report

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK

5th Week

Account Department:

Date

Day

Internship Activity

31-10-2014

Monday

Account opening Form

01-11-2014

Tuesday

Process of account opening

02-11-2014

Wednesday

Stamp on AOF and related documents

03-11-2014

Thursday

Know your customer Form

04-11-2014

Friday

Data Recorded for Internship Report

6th Week

Sales Department:

Date

Day

Internship Activity

31-10-2014

Monday

Introduction about sales of DIB

01-11-2014

Tuesday

How to calculate profit

02-11-2014

Wednesday

How to issue Debit card

03-11-2014

Thursday

How to issue Business card

04-11-2014

Friday

Data Recorded for Internship Report

5.4.4Details of Departments of Internship: During my internship I have been working in mainl these departments, which are, 

Clearing Department



Operations Department



Remittance Department



Sales Department



Account Department

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK

1. Account Department: I learned about the major Islamic banks and the way all types of accounts work at bank islami. I learned the different staff positions in a branch. We again discussed in detail how to break a deal. We received the profit rates for this month from head office through e-mail. We made fresh calculations on the basis of new rates. We learned about • • • • • • •

High risk accounts KYC (Know Your Customer) form. Discussed how Islamic banking is interest or riba free. Foreign currency accounts and the Schedule of Charges (SOC). Stop payment. miner‘s account Disabled persons account like blind, etc.

Types of Account: 

Current account



Saving Account



Saving plus account



Special saving account



Junior Account



E saving account



Enhanced saving account



Business account



Fixed Deposist account



Premium fixed account



Joint account

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Account opening method: Account opening form: 1.Specimen signature card (SS card) 2.Account opening form 3.ATM Debit card form 4.Banking services agreement 5.NIC copy 6.Customer Profile form 7.Business Proof 8.Telephonic verification 2.Operation Department:

1.Courier Register: Outgoing mail register Incoming mail register Cheque book ATM card ATM PIN

2. Cheque book entry: Account title Account number Leave number

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK 3.Demand Draft: ATM pin register entry ATM card register

4.Deposits Slip:

1.Deposist slip for Cash 2.Deposist slip for cheque

2.Remittance Department: Remetance department We Learned what is a      

Demand Draft (D.D.) Pay Order (P.O.), Foreign Demand Travlers Cheques (T.C.) Remittance inward Remittance outward

3.Clearing Department: In Clearing Department, cheques drawn on Bank by other Banks and cheques drawn by bank on other banks are handled. Types of clearing: Outward clearing Inward clearing Local clearing OBC clearing 4.Sales department: 1.Increase sale of services of Debit card 2.Attract new customer

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK 3.Achievement of target 4.Increase deposists of Branch 5.How to calculate profit to tell a customer how much profit he will get. 5.Cash Department: In Cash Department, dealing of cash receipts and cash payments is handled. Cash receipts are in the form of deposits in accounts, demand drafts, transfer commission, and other instruments that can be sold in the market. Cash payments are in form of withdrawals from accounts, miscellaneous expenses and clearing outward. Main activities of cash department are: 

Cash Receipt



Cash Payment



Cash Management



Cash sorting



Cash Lifting



Handling of Fresh Cash

5.4.5Detail of tasks assigned during the internship: During my internship I have been assigned following tasks and activities: 8.1Clearing Department: The major functions of clearing department are to receive the cheques, which are drawn on some other bank. The customers can get many cheques in his account. The bank accepts these cheques and collects the amount from other bank. Bank charges some commission of these facilities. 8.2 Inward clearing: Receiving of the Cheques from the other branches of HBLwithin the city is called inward clearing. These cheques are paid by or drawn up by bank which gets the inward clearing instrument. NCBA&E GUJRAT CAMPUS

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK 8.3 Outward clearing: Receiving of cheques from the other banks within the city is called outward clearing. 8.4 Intercity clearance: it includes all those cheques which are sends in other cities for clearance. It takes more than 4 days for clearance. Local areas cheques are clear in 1 or 2 days. Only one employee (manager operation) works in this department. 8.5 Reasons Returning Clearing Cheques There are some reasons that the cheque returned to the bank. Some are given below: There is less balance in customer’s account Difference in amount in words and figures, Signatures differ Cheque is post dated Cheque is out of date Payment stopped by the drawer 8.6 NIFT: NIFT stands for National Institutional Facilitation Technologies. It is subsidiary of SBP. Clearing house of SBP has a tiresome part of its work to a private institution Named NIFT. NIFT collects cheques, demand drafts, pay orders, Travelers Cheques etc. From all the branches of different banks within city through its carriers and send those to the branches on which these are drawn for clearing. After the branches approve the instruments drawn on them, NIFT prepares a sheet for each branch showing the number for instruments and amount in its favor and drawn on it and send it to each branch. A similar sheet for each bank is also sent to clearing house of SBP where accounts of banks are settled in the same manner.

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK

8.7 Account opening department: By doing work in this department I increase the particle knowledge about opening accounts. This department deals with opening any type of account i.e. Current account and saving account. 8.8 Opening an account: In order to open an account first of all the customer has to fill a form prescribed by the bank. The person is required to bring some reference or introduction for opening the account. Introducer may be a person who has an account with HBL. There are different requirement for different types of accounts and account holders. TYPES OF ACCOUNT: 1. Current Account In this type of account the client is allowed to deposit or withdraw money as and when he/she likes. He may, thus, deposits or withdraws money several times in a day if he likes. There is also no restriction of amount to be deposited or withdrawn. However, there is requirement of minimum balance maintenance of Rs.5000/- otherwise at the last of every month there will be deduction of RS. 50/-. Usually this type of account is opened by the businessmen. No profit is paid by the bank and no service charges are deducted by the bank on current deposits account. Eligibility: I.

All Pakistani’s Resident/Non-Resident, Individuals (Single-Jointly) Companies/Firms etc. can open and operate the Account.

II.

Any Foreign National Individuals (Single-Jointly) having valid Resident Pakistan VISA/Work Permit can open and operate the Account.

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Requirements for Opening of Account: 

Duly filled prescribed A/C opening FORM.



Attested photocopy of N.I.C./Passport of Account Holder(s),



Proprietor,Partners, Directors and office Bearers as the case may be.



Passport size photo (if signature are in Urdu)

Certified true copy of the certificate of incorporation or registration (in case of limited companies & registered bodies only). Features: 

Account can be OPENED with Minimum Balance Rs.1000/- with no maximumlimit.



Checking balance at any time during banking hours.



No profit is paid.



Statement of Account dispatched on request letter.



There is no restriction for withdrawals of amount and number of cheque.

2. Profit and loss sharing savings: This type of account is for those persons who want to make small savings. This type of account is opened with a minimum deposit of Rs. 1000/- or the amount prescribed from time to time. The profit is paid on these accounts on the minimum balance during a month for the whole of that month. Zakat & other taxes are deducted as per rules of the government. The requirements for this account is duly filled prescribed A/C opening FORM, Photo Copy of National Identity Card (Resident Pakistani), two Passport size photographs with Signatures/Thumb Impression (Resident Pakistani). Features: 

Account can be OPENED with Minimum Balance Rs.1000/- or prescribed limit that is announced time to time with no maximum limit.

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK 

Profit is payable at monthly subject to adjustment on deceleration of actual profit rate declared every half year.



Zakat will be deducted on valuation dates of account.



Profit is Paid/Credited in Account on half yearly basis in case of six monthly PLS saving accounts.



Statement of Account dispatched on half yearly basis after posting of profit.



There is no restriction for withdrawals of amount and numbers of cheque.

Remittance Department / Cash Department I work in this department, his department deals in transfer of money from one place to another Demand Draft: Demand draft is a written order drawn by a branch of a bank upon the branch of same or any other bank to pay certain sum of money to or to the order of specified person. It can be issued to the customers as well as non customer against cash cheque. Following parties are involved in demand draft:  Applicant  Issuing branch  Drawee branch  Beneficiary A demand draft may be issued against the written request of the customer before issuing it must be seen that the demand draft is in order. The DD application must be scrutinized by the counter clerk in respect of following points.

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 There should be branch where payment is to be made.  Full name of payer should be mentioned.  Amount in words and figures must be same  The applicant on two places should sign application.  Copy of CNIC. Demand Draft: 1.ATM pin register entry 2.ATM card register Account number Card number Deposist Slip: It has two categories: Deposists slip for cheque Deposits slip for cash Deposit slip for cash: Branch name Account title Account number Date Deposists Slip for cheque: Branch name Account title Account number Date Cheque number Branch name of cheque

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK

Travelers Cheque on Deposist slip: Branch name Account title Account number Date Branch name Envelop Categories: Window envelop Large envelop Small size envelop Details of cheque to be deposited: 

Cheque number is filled



Account number written on cheque is filled



Name of bank, of which cheque is to be deposited is written



Name of branch is filled



Date on cheque is filled



Amount of cheque is written in digits and word

Issue of Debit Card: Limits

PKR

Silver card limit

500

Gold card limit

1000

Platenium card limit

5000

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5.4.6 Summary of Learning: 5.4.6.1Skills And Qualifications Learned: During my internship I have learned a lot, I have learned: 

How handle customers



How to attract new customers



How to work professionally



How to solve problems of customer



How to prepare insurance cases



How to open accounts

5.4.6.2Kind of Responsibilities Undertaken During Internship: Following responsibilities I have undertaken during my internship: 

Responsibilities of branch operational manager



Responsibility of sending cheques through clearing

5.4.6.3Influence of Internship on my Future Career: Internship has influenced my career in a better way. During my internship I have been offered two jobs in Bank, one as a Branch Operational Manager and 2nd is in Bank Bancassurance Department. 5.4.6.4Correlation of Internship Activities with Classroom Knowledge: I have observed during my internship that classroom knowledge and internship activities are correlated positively somehow. Internship will impact on my career through this I have learn many different thing. I got the knowledge of different accounts, deposits, remittance and the locker system of the bank.

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK The purpose of report is to know all the major work and activities which held in the bank. I have performed different work at the branch and learn many things. I have work in different departments of the bank so that I can know work of every department.

Part3:

6.Financial Highlihts:

6.1 Dubai Islamic Bank Balance Sheet Horizontal Analysis

Description

2011

2012

2013

2010

131.21

165.45

100%

163.7

53.25

100%

314.18

954.30

100%

Assets:

Cash and balance with 107.2 treasury bank

Balance

with

other 32.32

banks

Due

from

financial 3748

institutional

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Investment

217.6

358.8

421.24

100%

Islamic Financing

103.9

114.5

154.66

100%

Operating Fixed asset

93.7

90.11

85.40

100%

Deffered Tax

83.6

48.4

52.29

100%

Other Assets

90.3

91.7

92.68

100%

120.8

159.2

201.2

100%

100%

LIABILITIES:

95.74

159.9

293.45

100%

Financial 199.8

168.4

309.26

100%

Deposists

122.5

169.0

215.30

100%

Subordinate loan

-

-

-

100%

Liabilities against asset

-

-

-

100%

Deffered tax

-

-

-

100%

Bill Payable

Due

to

Institution

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK

Other liabilities

Net assets

110.4

118.8

141.79

100%

123.99

167.35

216.58

100%

103.17

113.68

114.57

100%

100%

REPRESENTED BY:

Share capital

100

102.9

102.95

100%

Reserves

181.1

147.2

58.28

100%

Accumulated Losses

0.79

32.5

9.52

100%

100%

Advanced against future 100

100

100

100%

-

-

100%

113.68

114.57

100%

issue of share capital

Surplus on revaluation of asset

103.17

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK Dubai Islamic Bank Balance Sheet Vertical Analysis

Description

2011

2012

2013

2010

100%

Assets:

Cash and balance with 7.11

6.60

6.59

100%

2.31

0.89

2.29

100%

financial 7.93

5.04

12.1

100%

Investment

26.8

33.5

13.2

100%

Islamic Financing

49.5

41.4

44.2

100%

Operating Fixed asset

3.31

2.41

1.81

100%

Deffered Tax

0.77

0.34

0.29

100%

Other Assets

2.13

1.64

1.38

100%

treasury bank

Balance with other banks

Due

from

institutional

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK

100

100

100

100%

LIABILITIES:

0.81

1.03

1.50

100%

Financial 3.93

2.51

3.66

100%

Bill Payable

Due

to

100%

Institution

Deposists

79.86

83.6

83.6

100%

Subordinate loan

-

-

-

100%

Liabilities against asset

-

-

-

100%

Deffered tax

-

-

-

100%

Other liabilities

2.44

1.99

1.99

100%

87.05

89.17

91.32

100%

100%

Net assets

REPRESENTED BY:

Share capital

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140.6

10.96

100

100%

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK

Reserves

0.17

0.10

0.39

100%

Accumulated Losses

1.29

0.41

1.06

100%

Advanced against future 3.73

2.83

1.87

100%

0.13

0.04

100%

issue of share capital

Surplus on revaluation of 9.90 asset

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK Dubai Islamic Bank Income Statement Vertical Analysis Description: Profit/Return earned Profit/Return expensed Net spread earned Provision against non finance Provision for diminution Bad debts Net spread after provision Other Income: Fee,Commission Dividend income Income from dealing Gain on sale of security Unrealized Gain Other income Total other income Other expenses: Admin expenses Other provision Other charges Total other charges Extra ordinary Profit before taxation Current Prior Defferd Profit after taxation

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2011 100% 51.71

2012 100% 49.41

2013 100% 46.09

0.37 -

3.39 -

7.90 -

8.64 1.65 1.49 1.18 0.32

7.68 0.54 2.72 1.13 0.13

10.45 1.84 0.50 0.05

53.8 0.30 0.19

50.11 0.29 0.22

55.09 0.02 0.07

1.09 209.2

0.69 -

1.12 -

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK Dubai Islamic Bank Income Statement Horizontal Analysis Description: Profit/Return earned Profit/Return expensed Net spread earned Provision against non finance Provision for diminution Bad debts Net spread after provision Other Income: Fee,Commission Dividend income Income from dealing Gain on sale of security Unrealized Gain Other income Total other income Other expenses: Admin expenses Other provision Other charges Total other charges Extra ordinary Profit before taxation Current Prior Defferd Profit after taxation

2011 113.7 112.5

2012 139.5 131.8

2013 141.8 125.03

9.49 -

106.4 -

252.04 -

169.7 54.31 2067.1 5283.3

185.0 121.77 2434.1 2795.0

255.8 83.8 1099.7 1196.1

119.1 1853.0 69.30

135.8 2200 97.4

151.8 200.5 432.1

114.69 209.2

88.8 313.8

146.8 28.4

.

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK 6.2RATIO ANALYSIS: Ratio analysis is very useful approach to keep the management, shareholder and creditors in making various decisions about company. For analysis of the financial statement ratios can be classified as follows. Liquidity Ratio Leverage Ratio Profitability Ratio Activity Ratio Market Ratio Statement of cash flow a) Liquidity Ratio: 

Current ratio



Acid test ratio



Working capital



Sales to working capital

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1: Current ratio

Formula: current Asset / current liabilities

2013

2012

2011

= 0.23= 0.23=0.20

Interpretation: The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets. The current ratio of Dubai Bank of year 2013 and 2012 is good as compared to year 2011. But position in 2013 and 2012 shows better results that company is able to pay its obligations. In 2013 and 2012 years the ratio is more than one which shows the sound position.

3:Working capital ratio:

Formula: (Current Assets – Current Liabilities)

2013

2012

2011

=-54913708=-42305734=-32411527

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Interpretation: The working capital of Dubai Bank in years 2013 and 2012 is negative which means that the company is able to pay off its short- term liabilities. The position in 2011 is negative which shows that company is unable to pay its short term liabilities.

4.Sales to working capital:

Formula: sales/working capital

2013

2012

2011

= -0.105= -0.13=-0.14

Interpretation:

The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets. The working capital of Dubai Bank in years 2013 and 2012 negative which means that the company is not able to pay off its short- term liabilities. b) Leverage Ratio Time interest earned

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK Debts to coverage ratio Debt ratio Debt to equity ratio

5.Time interest earned:

Formula: EBIT/total interest

2013

2012

2011

= 0.07= 0.17=0.13

Interpretation: Time interest ratio of Dubai bank of year 2013 is times greater then 2012. It shows that Dubai bank earning before interest and tax has increased as compare to the year 2012

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6.Debt Ratio:

Formula: Total debt/Total assets

2013

2012

2011

= 1= 1= 1

Interpretation: Dubai bank limited has able to decrease it debt as compared to year 2011 because Dubai bank is using its assets efficiently as compared to the corresponding years. .

7.Debt to equity ratio:

Formula: Total debt/Total equity

2013

2012

2011

= 11.58= 9.34=7.71

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK Interpretation Dubai bank debts are greater than equity portion which shows that company is highly geared.

9.Debt coverage ratio:

Formula: Net operating income/Total debt

2013

= 0.04

2012

= 0.05

2011

=0.05

Interpretation: Dubai bank debts are greater than income portion which shows that company is highly geared.

c) Profitability Ratios Net profit margin Return on asset Operating income Return on operating asset

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK Do pont return on assest Return on total equity Gross profit

10.Net profit margin:

Formula: Net profit/Net earning*100

2013

2012

2011

= 2.36= 6.06=4.11

Interpretation: In year 2011 the net profit margin of Dubai bank is greater then year 2012 and year 2013, by 6.06 % in year 2012 and 2.36 in year 2013. This means that bank net profit margin decline over the years as compared to year 2011.

.

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11.Return on asset:

Formula: Net profit/Total asset*100

2013

2012

2011

= 0.17= 0.54=0.39

Interpretations: This ratio of Dubai bank in year 2012 is efficient then the year 2013 and year 2011 but it decline in year 2013 and year 2013 about 0.54 and 0.39% respectively in accordance to year 2011.

12.Operating Income:

Formula: Operating income/net earning*100

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2013

2012

2011

= 49.7= 58.20=61.21

Interpretation: If the margin is higher its shows the better position of the company. Dubai bank has higher margin in year 2011. In year 2013 and year 2012 the margin is less as compared to year 2011 its means in year 2011 it’s earning is more per rupee of sale.

13.Return on operating asset:

Formula: Net income/Operating asset*100

2013

2012

2011

= 0.82= 2.63=2.27

Interpretations: Return on operating assets is highest in year 2013 it means that the dubai bank is able to use it operating assets effectively and efficiently to generate income as compared to year 2013 and year 2011.

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14.Dopont return on asset:

Formula: Profit after tax/Total asset*100

2013

2012

2011

= 0.17= 0.54 =0.39

Interpretation: This ratio of Dubai bank in year 2011 is efficient then the year 2012 and year 2013 but it decline in year 2012 and year 2013 about 1.38% and 0.35% respectively in accordance to year 2011.

15.Return on total equity:

Formula: Net profit after tax/equity*100

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK

2013

2012

2011

= 1.97= 5.07=3.05

Interpretation: Dubai bank is always being a good choice from the investor point of view because according to above data it is clear that Askari bank is providing greater return in year 2011 then the upcoming years.

16.Gross profit ratio:

Formula: Gross profit/Net earning*100

2013

2012

2011

= 53.90= 50.58=48.28

Interpretation: According to above ratios it is clear that Dubai bank gross profit margin has increase during the years because they have increase there income by using proper strategies

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK d) Activity Ratios Total asset turnovers Fixed Assets turnover

17.Total asset turnover:

Formula: Net earning/Total asset*100

2013

= 7.19= 8.94

2012

2011

=9.61

Interpretation: Dubai bank using its assets very well at constant ratio in year 2012 and year 2013. 18.Fixed Asset Turnover:

Formula: Net earning/Operating asset*100

2013

2012

2011

= 34.23= 43.49=55.33

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INTERNSHIP REPORT ON DUBAI ISLAMIC BANK Interpretations: Dubai bank limited is using its operating assets to generate a high return in 2011 which is 55..33% but it declines in 2012 due to less earnings but it again grow in 2013. Market Ratios Dividend per share Earning per share Book value per shares.

20.Earning per share:

Formula: Net profit/No. of outstanding shares

2013

2012

2011

= 0.01= 0.04=0.02

Interpretation: Dubai bank using its outstanding share very well at constant ratio in year 2012 and year 2013.Dubai bank is most profitable in 2012 in which earning per share is 0.04% as compared to year 2013 and year 2011. Because Dubai bank is enable to control its operations that’s why earning per share is decline during the year.

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21.Book value per share:

Formula: Shareholder equity/Share capital

2013

= 0.99 = 0.97

2012

2011

=0.92

Interpretation: Shareholder equity shows how much the shareholders were actually paid by way . This ratio is better in year 2013 and year 2011 as compared to year 2011. F)Statement of cash flow:

22.Operating cash flow to total debt:

Formula: Operating cash flow/Total debt

2013

2012

2011

= 0.01= 0.21=0.10

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23.Operating cash flow to per share:

Formula: Operating cash flow/Total shares

2013

2012

= 0.18

= 1.93

2011

=7.35

Conclusion: DIB is clearly the priority of those customers who believe in qualitative approach in banking environment.DIB is enjoying a healthy market share and good status in terms of its operating features and customers’ support.DIB is the best bank operating in Pakistan. It has more customers than another bank.

No doubt that DIB is the largest bank in the private sector and since its establishment it has progressed and improved tremendously and has a customer base exceeding 5 million but it can still advance further if it adopt new changing IT technologies as there is still room for some improvements. 

Bank should try increase profit after taxation to strengthen its return on equity ratio.



The management should make the innovative plans and schemes to utilize the investment wisely.

There is an increasing trend of assets, but just the increase does not benefit the bank until and unless these are utilized effectively. The appreciation should be encouraged by management of Habib bank.

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Promotions should also make for better output.



It should train its employees about the new IT trends.



Proper customer handling training should be given to employees.



Number of employees should be increased in order to decrease the work load.

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It should train its employees about the new IT trends.

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Moreover certain needs of the employees should also be considered like bank timings should be acceptable and employees should be given importance and must be consulted in some decision making processes.

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Improved friendly relations are required between the top and the middle management. This will make the employees work even better for their organization.

7.2SWOT ANALYSIS: STRENGTHS • • •

The first international Islamic Bank in Pakistan with a network of over 17 branches in 6 cities The members of the Shariah Supervisory Board of DIBPL are internationally-renowned scholars, serving on the boards of many Islamic banks operating in different countries. Online banking service means that a customer can withdraw and deposit his money at any branch in the country.

WEAKNESS: • • •

The management was of the view that the customer should come to them and they don’t need to go to the customer It was observed in the bank that the degree of satisfaction of the employees was quite low. Due to the dissatisfaction of staff and recession, there is high turnover among them

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OPPORTUNITIES:    

House financing sector can be targeted to maximize the profit Growing demand of Islamic financial product and services Increase branch network within the country Coming up with products for the SME to targeting the medium level customers

THREATS:   

Aggressive marketing by the competitor banks Large number of conventional commercial banks Few banks that are providing Islamic banking services, hence more can enter in near future

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8.RECOMMENDATIONS: Here I am giving some suggestions, which in my view can add some input for efficiency and better performance of DIBPL as an organization in general and Gujrat Branch in Particular The recommendations are as follows:  In my opinion the process of a transaction should be short in order in save time for both customers and the bank.  Staff strength should be enhanced and professional qualified persons should be recruited.  It is recommended that proper training be provided to the staff members that will ultimately increase the performance of Bank over all.  It is suggested that promotion be given to the staff in due time and on the basis of performance to provide job satisfaction.  The bank should spend more on renovation of the branches to improve environment and atmosphere to attract the customers.  Sitting arrangement, air conditioning and new furniture should be facilitated

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9.REFERENCES: 

www.dibpl.com.pk

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www.dibpl.com.pk/An_Report.htm

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Annual Reports of DIB

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Web sites of ABL, UBL, Alfalah Commercial Bank, MCB, and Askari Commercial Bank Limited for industry analysis.

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