Chapter-1 Introduction Bank is the life-blood of the modern economy. Bank is a financial institution, which deals with the money of the people. There are different types of banks like Central bank, Commercial bank, Savings bank, Investment bank, Merchant bank, Co-operative bank etc. when we use the term bank it generally means ‘Commercial Banks’ which collect the deposit from the surplus unit of the society and then lends the deposits to the deficit units. Trustworthiness is the main prerequisite to establish a bank. Banks are playing major role to the economic development of the country through the creation of savings, mobilization of savings through lending in the profitable sectors. Besides these two activities, now a days banks are providing various service to its clients. Specially, assistance in foreign exchange, discounting bills, creation of loan deposit, collection and payment of money on behalf of clients, purchase and sale of shares and securities, under-writing shares and debentures, safe custody of money and wealth, money transfer, counseling and issue of bank solvency certificate etc. All these activities help an economy to grow faster. People i.e., the employees of the organization do all these activities. In a bank, there are some critical things to understand. For this reason, highly educated, efficient and 1
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Chapter-1
IntroductionBank is the life-blood of the modern economy. Bank is a financial institution, which deals with
the money of the people. There are different types of banks like Central bank, Commercial bank,
Savings bank, Investment bank, Merchant bank, Co-operative bank etc. when we use the term
bank it generally means ‘Commercial Banks’ which collect the deposit from the surplus unit of
the society and then lends the deposits to the deficit units. Trustworthiness is the main
prerequisite to establish a bank. Banks are playing major role to the economic development of
the country through the creation of savings, mobilization of savings through lending in the
profitable sectors. Besides these two activities, now a days banks are providing various service to
its clients. Specially, assistance in foreign exchange, discounting bills, creation of loan deposit,
collection and payment of money on behalf of clients, purchase and sale of shares and securities,
under-writing shares and debentures, safe custody of money and wealth, money transfer,
counseling and issue of bank solvency certificate etc. All these activities help an economy to
grow faster. People i.e., the employees of the organization do all these activities. In a bank, there
are some critical things to understand. For this reason, highly educated, efficient and dedicated
personnel are required to run a bank in this competitive era. So, Human Resource Management
(HRM) is very important to every organization including banks. The success of every
organization depends on human resources. Therefore, employees must be qualified and
motivated enough to achieve the mission and vision and to create and retain competitive position
in the market
1.1 Background of the report:
It is an obligatory requirement of BBA students to be attached to an organization to gain
practical knowledge about the administration and other related issues. This process is called
internship. My internship is completed at IFIC bank Ltd, Nayapaltan branch. After the
completion of the internship, an internship report is needed to be prepared and submitted to the
supervisor. That is why this report is prepared, as part of the academic requirement.
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1.2 Statement of the problem:
It is not possible to run any organization without man. So every organization has men or Human
Resource. Dealing with Human Resource (HR) is never an easy task to do. To manage and
develop them successfully, the Human Resource Management (HRM) activities are very
important to every organization. The importance of HRM is also the same in the banking sector
or even may be even more than any other organization. As a student of Management my focus
goes to the management issues, particularly on HRM issues in the banking sectors in
Bangladesh. Therefore my study navigated toward the problem and prospect of IFIC bank Ltd.,
Nayapaltan branch. Especially I have focused problems associated with the HRM policy of bank,
job satisfaction level of the employees, compensation, promotion, training, organizational
cultures etc.
1.3 Objective of the study:
The main objective is to analyze HRM prospects and to find the different problems associated
with different HRM activities. Specially:
• To find out different problems of HRM activities
To judge the employees’ job satisfaction level
To seek different problems of the employees in the banking sectors
To identify the reasons for which the problems are created
To search ways to solve the problems of the organization
To provide suggestions to solve problems of the employees and the banks
1.4 Limitations of the study:
Nothing is beyond limitations. Everywhere and in every task there must have some sort of
limitations. I also faced some problems at the time of preparing my internship report as well.
The limitations are:
Lack of availability of data
Shortage of time
Company’s restrictions to disclose all information
Perceptual difference of the employees to measure job satisfaction
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Chapter-2:
Methodology
2.1 Variables Covered:
HRM issues have been described in this report. History of the IFIC bank Ltd, its profile,
organizational structure, hierarchical positions of the employees, compensation, selection and
recruitment procedures, welfare program, training procedures, promotion, punishment,
performance appraisal methods, employee participation, career counseling, internship policy, and
all HRM related issues have been analyses here. A sample survey report about job satisfaction of
employee and other HRM issues of the IFIC bank Ltd., Nayapaltan Branch has been analyzed
here.
2.2 Sampling Design:
A survey has been conducted based on the collected data about the employees from the IFIC
bank Ltd., Nayapaltan Branch to measure the job satisfaction level of the employees working in
the banking sectors more particularly in the IFIC bank Ltd., Nayapaltan Branch. A sample of 27
people has been collected for analysis. Data has been statistically analyzed after collecting the
data.
2.3 Methods of collecting data:
a) Primary sources:
•A sample survey of the 22 people from IFIC bank Ltd, Nayapaltan Branch
• Guidelines and suggestions from Internship supervisor Prof. Mr. Altaf Jalil
•Interviewing with the bank officials, specially the various officers of IFIC Bank Ltd.,
Nayapaltan Branch & IFIC academy.
b) Secondary Sources:
• Annual reports of IFIC Bank Ltd
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•Different Published Booklets of IFIC Bank Ltd
•Different books
•Various published documents
•Various information from company’s website
2.4 Analytical tools used
Statistical analytical tools such as Mean, Standard Deviation, and Coefficient of variation,
sampling design are used in the report.
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Chapter-3
Company Profile
3.1 Profile
International Finance Investment and Commerce Bank Limited (IFIC Bank) is a banking
company incorporated in the People's Republic of Bangladesh with limited liability. It was set up
at the instance of the Government in 1976 as a joint venture between the Government of
Bangladesh and sponsors in the private sector with the objective of working as a finance
company within the country and setting up joint venture banks/financial institutions abroad. The
Government held 49 per cent shares and the rest 51 per cent were held by the sponsors and
general public. In 1983 when the Government allowed banks in the private sector, IFIC was
converted into a full-fledged commercial bank. The Government of the People’s Republic of
Bangladesh now holds 35% of the share capital of the Bank. Leading industrialists of the country
having vast experience in the field of trade and commerce own 34% of the share capital and the
rest is held by the general public.
3.2 Bank's Mission
The bank’s Mission is to provide service to their clients with the help of a skilled and dedicated
workforce, whose creative talents, innovative actions and competitive edge make their position
unique in giving quality service to all institutions and individuals that IFIC care for.
IFIC Bank Ltd. is committed to the welfare and economic prosperity of the people and the
community, for they drive from them our inspiration and drive for onward progress to prosperity.
It wants to be the leader among banks in Bangladesh and make their indelible mark as an active
partner in regional banking operating beyond the national boundary.
In an intensely competitive and complex financial and business environment, IFIC Bank Ltd.
particularly focuses on growth and profitability of all concerned.
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3.3 Background of IFIC Bank Limited
During 28th January 1965 The Eastern Banking Corporation inaugurated its operation in East
Pakistan as a commercial bank. After 6 months of its inauguration it has got the status of
Schedule Bank. It was the first Bengali Owned commercial Bank. After liberation the Eastern
Banking Corporation was changed by name as IFIC Bank Ltd. During 1972, it was taken under
national ownership. At that time it’s paid up capital was 69.13 crore and profit figure was 42
lakhs. During September 1983 it was privatized under Privatization Act. At that time its deposit
was 231.03 crore and profit figure was 5.06 crore. Till 2002 its number of branch stands to 198
and its paid up capital was 100 million. 95% of its shareholder is public and rest of share holds
by Government. The bank earned ever-highest operating profit during the year 2002 among all
private banks of Bangladesh (except Islami Bank BD Ltd.). The bank earned an operating profit
of Tk. 131.18 crore during the year 2002.
International Finance Investment and Commerce Bank Limited (IFIC Bank Ltd.) is a banking
company incorporated in the People’s Republic of Bangladesh with limited liability. It was set
up at the instance of the Government in 1976 as a joint venture between the Government of
Bangladesh and sponsors in the private sector with the objective of working as a finance
company within the country and setting up joint verdure banks/ financial institutions abroad. The
Government held 49 percent shares and the rest 51 percent were held by the sponsors and general
public. In 1983 when the Government allowed banks in the private sector IFIC was converted
into a full-fledged commercial bank.
The Government of the People’s Republic of Bangladesh now holds 34.34 % of share capital of
the Bank. Reputed business people of the country having vast experience in the field of trade and
commerce and the general public own the rest of the share capital of the Bank.
3.4 Milestones in the development of IFIC BANK
1976 - Established as an Investment & Finance Company under arrangement of joint venture
with the govt. of Bangladesh.
1980 - Commenced operation in Foreign Exchange Business in a limited scale.
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1982 - Obtained permission from the Govt. to operate as a commercial bank.
- Set up its first overseas joint venture (Bank of Maldives Limited) in the Republic of
Maldives (IFIC's share in Bank of Maldives Limited was subsequently sold to Maldives
Govt. in 1992)
1983 - Commenced operation as a full-fledged commercial bank in Bangladesh.
1985 - Set up a joint venture Exchange Company in the Sultanate of Oman, titled Oman
Bangladesh Exchange Company (subsequently renamed as Oman International
Exchange, LLC).
1987 - Set up its first overseas branch in Pakistan at Karachi.
1993 - Set up its second overseas branch in Pakistan at Lahore.
1994 - Set up its first joint venture in Nepal for banking operation, titled Nepal Bangladesh
Bank Ltd.
1999 - Set up its second joint venture in Nepal for lease financing, titled Nepal Bangladesh
Finance & leasing Co. Ltd. (which was merged with NBBL in 2007)
2003 - Overseas Branches in Pakistan amalgamated with NDLC, to establish a joint venture
bank: NDLC-IFIC Bank Ltd. subsequently renamed as NIB Bank Ltd.
2005 - Acquired MISYS solution for real time on-line banking application.
- Core Risk Management implemented.
2006 - Corporate Branding introduced.
- Visa Principal and Plus (Issuer and Require) Program Participant Membership obtained.
2008 - Observing 25th Anniversary of Customer Satisfaction.
2009 - 64 Branches offering Real Time On-line banking facility.
Source: Web site: <ntth://www.ificbankbd.com/>
3.5 Management Structure
The twelve members of the Board of Directors are responsible for the strategic planning and
overall policy guidelines of the Bank. Further, there is an Executive Committee of the Board to
dispose of urgent business proposals.
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Besides, there is an Audit Committee in the Board to oversee compliance of major regulatory
and operational issues.
The CEO and Managing Director, Deputy Managing Director and Head of Divisions are
responsible for achieving business goals and overseeing the day to day operation.
The CEO and Managing Directors are assisted by a Senior Management Group consisting of
Deputy Managing Director and Head of Divisions who supervise operation of various Divisions
centrally and co-ordinates operation of branches.
Key issues are managed by a Management Committee headed by the CEO and Managing
Director. This facilitates rapid decisions.
There is an Asset Liability Committee comprising member of the Senior Executives headed by
CEO and Managing Director to look into all operational functions and Risk Management of the
Bank.
3.6 Composition of the Board
Unlike other banks in the private sector, Board of Directors of the Bank is a unique combination
of both private and Government sector experience. Currently it consists of 14(fourteen)
Directors. Of them nine represent the rank and status of Joint Secretary/Additional Secretary
represents the Government. Managing Director is the ex-officio Director of the Board.
Here enclose the current list of Board of Directors of IFIC Bank Ltd.
Designation Number of Directors
1. Chairman
2. Directors
3. Government Director
4. Managing Director
01
07
03
01
Total 12
3.7 Board of Directors
01. Mr. Mohammad Lutfar Rahman, Honourable Chairman
02. Mr. Abu Tahir Mohammad Golam Maruf, Honourable Director
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03. Mr. Aminur Rahman, Honourable Director
04. Mr. Syed Anisul Huq, Honourable Director
05. Mr. Mohammed Nayem Syed, Honourable Director
06. Mr. S.M. Faruqi Hasan, Honourable Director
07. Mr. Tanim Noman Sattar, Honourable Independent Director
08. Mr. Mahmudul Huq Bhuiyan, Honourable Director
09. Mr. Arastoo Khan, Honourable Director
10. Mr. Syed Monjurul Islam, Honourable Director
11. Mr. Mohammad Ali Khan, Honourable Director
12. Mr. Mosharraf Hossain, Managing Director
Source: Web site: <ntth://www.ificbankbd.com/>
3.8 IFIC Management Committee
01. Mr. Mosharraf Hossain, Managing Director
02. Mr. Mohammad Abdullah, Deputy Managing Director
03. Mr. A.K.M. Mozharul Hoque, Senior Executive Vice President & Company Secretary
04. Mr. Syed Zahidul Islam, Senior Executive Vice President & Head of Human Resources
Division
05. Mr. S.M. Abdul Hamid, Senior Executive Vice President & Head of Finance and Accounts
Division
06. Ms. Zaitun Sayef, Senior Executive Vice President & Head of Training & Research Division
07. Mr. Shaikh Rashid Ahmed, Executive Vice President & Head of Treasury & International
Banking Division
08. Mr. Narayan Chandra Roy, Executive Vice President & Head of Internal Control and
Compliance Division
09. Mr. Fariduddin Al Mahmud, Executive Vice President & Head of Corporate Banking &
Marketing Division
10. Mr. Wakar Hasan, Executive Vice President & Head of Credit Risk Management Division
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11. Mr. Md. Abul Hossain, Executive Vice President & Head of Corporate Communication and
Support Service
12. Mr. Md. Ruhul Amin, Executive Vice President & Head of Remedial Asset Management
13. Mr. Gopal Chandra Guha Roy, Senior Vice President & Head of IT
14. Mr. Md. Ataur Rahman, Senior Vice President & Chief Anti Money Laundering Compliance
Officer
3.9 Financial Position 2009:
IFIC BANK LIMITEDProfit and Loss Account
For the year ended December 31, 2008
2008 2007INCOMEInterest income
Taka Taka 3,515,483,197 2,346,781,999
2,774,571,822 1,896,541,082 Less: Interest paid on deposits, borrowings, etc.
Net Interest Income 1,168,701,198 878,030,740
Income from Investment 691,437,620 874,123,199 442,911,096 2,430,784
569,526,765 754,827,143 291,334,496 806,234,009
Commission, exchange and brokerageOther operating IncomeCapital gainTotal operating Income 3,179,603,897 3,299,953,153
Profit after tax for the year 657,310,698 964,927,945 Retained Profit brought forward 167,245,466 166,018,800 AppropriationsStatutory reserveRetained earningsEarnings Per Share (EPS)