CHAPTER
1
INTRODCUTION
TO THE REPORT
1.1 Background of the Study
It is common practice during the
completion of bachelor program to attain practical experience in different
fields. Khurasan University in the case of Bachelor
degree undergo two months internship program. The internship is to serve the
purpose of acquainting the student with practice of knowledge of the discipline
of banking administration. The concern of this report is to study and analyze
the performance of Maiwand bank in the country of Afghanistan.
Maiwand bank is the fastest emerging strong commercial
bank in Afghanistan established and commenced banking business from 1st
january,2009 promoted by afghan nationals and managed by international banking
professionals within the short span of 12 months, the bank has a branch network
of 18 branches with us $ 67 million business level. Another 7 branches will
opened with in next day’s further licenses for opening 12 more branches are
under process. Thus targeted network of branches by end of first year of
operation is 37 also the Da Afghanistan bank has issued no objection
certificate for opening of an overseas branch in Tajikistan. We expect to have
this branch operational in the very near future.
1.2 Objectives of the Study
The primary purpose of this study is
to fulfillment of the requirement for the degree of BBA (Finance). The
secondary purpose of this internship is to understand how the theoretical
knowledge can be applied to the practical situation and examine an organization’s
management issues
The main objectives of the study
are:
·
To study the
organizational and management setup of Maiwand bank
·
To critically
analyze the functioning of Maiwand bank and point out the deficiencies and
problems in it.
·
To give
recommendations for improvement in the functioning of Maiwand bank.
·
To get some experience in working with well reputed organization
·
To gain knowledge about the professional environment of the bank.
·
To know about the technology utilized in the banks
·
To deal and manage with the situation of stress
1.3 Scope of the Study
We
explore the implications of financial system design for financial innovation.
We begin with assumptions about the investment opportunities of firms, their
observable attributes, and the roles of commercial banks, investment banks, and
the financial market we examine the borrower's choice between bank and
financial market funding, the commercial bank's choice of monitoring capacity,
and the investment bank's choice of whether to invest in financial innovation.
Our main result is that financial innovation in a universal banking system is
stochastically lower than innovation in a financial system in which commercial
and investment banks are functionally separated.Maiwand bank have more branches in Afghanistan the main branch is in Kabul in Mohammad Jan
khan watt and the provincial branches are in.
☆
Head Office
☆
Ladies Branch
☆ Sarai Shahzada Branch
☆
Ladies
bra Kote sangi Branch
☆
kote
sangi Branch
☆
Macro
Ryan Branch
☆ Macro Ryan Ladies Section
☆ Khair khana Branch
☆
Kabu Gulbahar
center branch
☆
university
branch
☆
Karti
sih branch
☆
Kotel
khair khana branch
☆ Islamic banking Branch
☆ Provincial Branches
☆ Islam Qala Branch
☆ Mazar Ladies Branch
☆ Badakhshan Branch
☆ Takhar Branch
☆ Pule Khomri Branch
☆ Jalalabad Branch
☆ Jalalabad Branch Ex.
Counter
☆ Hairatan branch
☆ Khan Abad branch
☆ Sher Khan Bandar Branch
☆ Kunduz Branch
☆ Kandahar branch
☆
Ghazni Branch
1.4 Limitation of the Study
Two
months time period was not enough to completely understand functioning of the
bank and making report about all function of the bank They did not give me more information for the
sake of the Confidentiality of the bank and
The
updated information is not available, and the clients were very busy to provide
me more for interview, and also the time is also a big constraint for my report.
1.5 Methodology of the
Study
Both
primary and secondary data were used in compilation of the report
Methodological
tools used were:
i.
Primary Data
·
Personal
Observations.
·
Discussion with
Bank Personnel.
·
Focus group
meeting.
·
Direct
observation.
·
Communication with
manager.
·
Communication with
employees.
ii.
Secondary
Data
·
Monthly magazine
of Maiwand Bank
·
Newspapers and
books.
·
Internet.
·
Operational manual
·
Annual reports
Scheme of Study:
Chapter 1 Introduction to
the Report
Chapter 2 overview of the
organization
Chapter 3 Plan of my
internship program
Chapter 4
Departmentalization at the branch level
Chapter 5 Financial
statement analysis
Chapter 6 critical analysis
& Swot analysis
Chapter 7 conclusion &
recommendation
CHAPTER
2
OVERVIEW
OF THE ORGANIZATION
2.1 Brief History
Maiwand bank is the fastest emerging strong commercial
bank in Afghanistan established and commenced banking business from 1st
january,2009 promoted by afghan nationals and managed by international banking professionals
within the short span of 12 months, the bank has a branch network of 18
branches with us $ 67 million business level. Another 7 branches will opened
with in next day’s further licenses for opening 12 more branches are under
process. Thus targeted network of branches by end of first year of operation is
37 also the da Afghanistan bank has issued no objection certificate for opening
of an overseas branch in Tajikistan. We expect to have this branch operational
in the very near future.
2.2 Natures of the organization
In the Afghanistan before 76 years there were not any commercial
sector in government and as well in private sector it means that not government
bank or private commercial bank because of that the people of Afghanistan saved
their money with money keeper in the city ( Saraf) so the government of Afghanistan by demand of
the public made banking sector such as central bank of Afghanistan(Da
Afghanistan bank) in 1939 it was the first bank which made by government of
Afghanistan but there was not promotion in the bank sector for a long time because
there were in Afghanistan more than 30 years
civil wars in 2001 when the afghans new democratic government structured
and took the authority of all Afghanistan the central bank ( Da Afghanistan
bank) allowed others private bank sector to start their commercial working
there in Afghanistan under rule and laws of central bank of Afghanistan(DA
Afghanistan bank) so there in Afghanistan a lot of investor came invested their
money in business sector, Agra-culture,
banking sector now there are 2 state owned bank, 7 foreign bank, 7 local bank,
one of them is Maiwand bank which is made in 1 Jan 2009 yet in Kabul and others
province of Afghanistan to offer good services and products to public, Maiwand bank promoted by afghan nationals with
huge capital 15 million to provide new products and services for the
Afghanistan public Maiwand bank supported by professional promotors, qualified
and experienced international banking sector professional in the Management of
Maiwand bank and controlling the bank by the team which are qualified,
experienced international bankers, this team hiring others local talents and
trained employees to grow the operations
of the bank and trying for the bank promotion, advancement of the banking
sector in the Afghanistan because the afghanis want advancement in the their
country.
2.3 Business Volume
Within
the short span of 12 months in operation, Maiwand bank was able to set solid
standards in the banking industry with sustainable growth and measurable
parameters. Maiwand bank largely concentrating and targeting on business
segment with an aim to capture the current account clients by catering to their
special needs of settlement of payment for their export and import businesses.
Ø
Total
business of the bank stands at USD 67.49 millions
Ø
Deposits
of the bank stands at USD 38.23 millions
Ø
Advances
of the bank stands at USD 29.29 millions
Ø
No of
customers around 33,000
Ø
Current account
deposits constitutes 74% of the total deposit
2.4 Service
& Products Line
In many countries in the world
commercial bank helping the people in their business in daily trading, one of
them maiwand bank is in Afghanistan this bank providing products and services for it costumer and it is type of
bank that provides services such as accepting deposits, making business loans, offering basic investment products, and as
well in promotion of marketing in the markets of Afghanistan, This bank can
also refer to bank or division of a bank that mostly deals with deposits and
loans from corporations or large business, as opposed to individual members of
the public.
Deposits are broadly divided into:
a)
Demand deposits:
In demand deposits the
public can deposit their money by their own choice it means that we accepted
deposit money of the public than they can withdrawing their money by withdrawing by cheques, draft, withdrawals,
transfer, ATM and internet banking all these kind of deposit offer by the bank.
b)
Current deposits:
Current
deposits is a type of deposits in the bank sector that current deposits will
often be made into the bank or other financial institutions account in the
local currency of the country this deposit will generally be made available to
the customer for withdrawal at any time and without an early withdrawal penalty, fund are
typically made immediately available to the customer for withdrawal by writing
a check this type of account are generally used for businesses that have a need
for issuing cheques to pay employees’ salaries and as well for providing cash
for inventories and other such businesses expenses, the bank where the current
deposit account is held usually pays out interest on the fund periodically,
such as monthly or quarterly in kind of deposit the terminology current deposit
refer to a deposit to a bank account or financial institution without a
specified maturity date, these types of current deposit account generally only
earn demand deposit interest.
|
Current Accounts for Individual
|
|
|
Account opening
|
No charge – FREE
|
|
Initial deposit & minimum balance
|
AFN 10,000 & Other currencies 200
(USD, EUR, GBP)
|
|
Current Account for
corporate/ govt./ organization
|
|
|
Account opening
|
No charge – FREE
|
|
Initial deposit & minimum balance
|
AFN 10,000 & Other currencies 200
(USD, EUR, GBP)
|
|
Cheque Book Charges
|
One cheque book will be issued free of cost after that charge 5
USD or 250 AFN
|
|
20 Leaves
|
AFN 250 & Other currencies 5
(USD, EUR, GBP)
|
c)
Saving deposit
These types of deposits are mainly to inculcate a sense of saving for the future
accumulating funds over a period of time, whatever your occupation, starting
saving and let your money earn for you saving account offer you one of the most
suitable ways to manage your hard earned money, so start saving and earning
profit today, you should choose to open saving account not to merely make money
but also to secure your future in Maiwand bank because our prophet Muhammad ص said
that save your money not spend more than your need it means that if earn 100
AFS spent from it according to your need suppose your expenses is 60 but you
spend 100 it is not the good way, the good way is spend 60 because it is your
need and save 40 saving deposit done as below in the Miawand
bank.
|
Saving Accounts
|
|
|
Account opening
|
No charge – FREE
|
|
Initial deposit & minimum balance
|
AFN 1,000 & Other currencies
100 (USD, EUR, GBP)
|
|
Interest payable to customers (p.a.)
|
AFN 6%, USD 6%, EUR 6% & GBP 6%
|
|
AC closing charges
|
AFN 250 & other currencies
5 (USD, EUR, GBP)
|
d)
Time deposit/term deposit/fixed deposit
These types of deposit accounts in which we deposit money of the public for long time it means that this
type of account done for long term and type of deposit designed for all
customer regardless of individual or small/ big org with a short to medium term
investment appetite, it offers customer the option of investing for some time
which mention from the bank it is 3 Months up to 1 Year, it has designed
keeping in the saving needs of the customer who want substantial profit at the
end of some specific tenure.
|
Fixed Deposit Accounts
|
|
|
Initial deposit & minimum balance
|
AFN 100,000 & Other currencies 2,000
(USD, EUR, GBP)
|
|
3 months
|
AFN 4% USD 2.5%, EUR 2%
|
|
6 months
|
AFN 4.25%,
USD 2.8%, EUR 2.25%
|
|
1 year
|
AFN 4.35%,
USD 3%, EUR 2.50%
|
2.4.2 Credit Funded Facilities (Conventional)
Maiwand bank offers the following
credit facilities under the conventional credit facilities, tailored for the
needs of its customers.
·
Overdraft
·
Term finance /
project finance
·
Bill discounting
2.4.3 Credit
non funded facilities (conventional)
·
Bank guarantees
·
Bid security
·
Advance
·
Performance
·
Letters of credits
·
Usance
·
Standby
General
Terms & Conditions Funded Facilities
·
Period:
average facility period is 1 year
·
Interest Rate: 14%
to 16% depending on the history of the customers with Maiwand Bank
·
Collateral:
maiwand bank finances its customers against reliable depending on the nature of
the facility and history of the customer with Maiwand bank
·
Registered
Mortgage – primary required by maiwand bank and the central bank
of Afghanistan (DAB)
·
Assignment of
Receivable – from reputed donors only
·
Pledge of Stock
·
Currency : facilities
available in US Dollars & Afghani
·
Overdraft
Terms and Conditions
Over drafts are the credit facility
that are offered those customer and business who on the daily
Weekly or monthly bases by products
for further sell the customer are allowed to buy supplies from the authorized
limit anytime and they can repay anytime when they have available idle cash to
avoid interest.
In overdraft facility, the customers
are served with the following services
·
Unlimited
transactions
·
Deposits local and
international transfers
·
Monthly interest
payments
·
Principle
adjustments up to the customer’s turnover conditions
·
Loan purposes can
be working capital for trade, import, export, services providing, and
Construction and production businesses.
Bank Guarantees
(Continues) Terms and Conditions
·
Advance
payment: maiwand bank issues advance payments for the
customers with projects in hands and required by the beneficiary from a
reputable bank to make their project payments.
·
Security
: this guarantee should be 100% secured (by cash and or
collaterals)
·
Charges:
0.3% per quarter and with minimum processing fee of 1% from the (total) amount
of the bank guarantee ) – (negotiable)
Letter
of credits (continues)
·
Usance letter of
credit
Under
usance LCs payment for the goods is deferred by the exporter to allow the
usance LC are for tenor specified in the LC and are payable by the importer on
due date
Letter
of credits (continues)
·
Stand by letter of
credit
Standby
letters of credit act as a payment guarantee for trade transactions.
The
standby letters of credit cover the risk of nonperformance.
Letter of Credits Terms
& Conditions
·
LC can be opened
from 1 quarter up – to 8 quarters
·
Commissions &
fees payable at the time of issuance
·
Can be opened on
minimum of 35% cash margin
·
LC’s are confirmed
by 1st class gulf European & British banks
·
Quickly processed.
2.4.4 Internet banking
Maiwand bank delighted
to bring you people the next level of internet banking, offering an intuitive,
simpler online banking or internet banking experience that is safe and secure,
in the internet banking you can banking whether you are at the office, at home,
or on the way, our new internet banking is at your fingertips on smartphone,
tablet, laptop or desktop computer, Now you have freedom to bank easily and
seamlessly across all of your devices.
2.4.5 Sms banking
Maiwand
bank providing mobile banking system that allows customer of a financial
institution to conduct a number of financial transaction through a mobile
device such as a mobile phone or tablet, Mobile banking differs from mobile
payments, which involve the use of a mobile device to pay for goods or services
either at the point of sale or remotely, this facilities provided Maiwand bank
to check your bank account balance and last transaction, fall balance by mobile
anytime and anywhere.
2.5
Competitors of Maiwand
Bank
·
Bakhtar bank
·
Aryan bank
·
Afghanistan
international bank (AIB)
·
Azizi bank
·
New kabul bank
·
Bank alfalah limited
·
Ghazanfar bank
·
Afghanistan
commercial bank
·
Habib bank of Pakistan
·
National bank of Pakistan
·
Punjab bank of India
·
Standard chartered
bank
·
The first micro
finance bank
·
Afghan united bank
·
Pashtany bank
·
Bank-e-Millie
afghan
2.6 Organization Structure
Organizations can be structured in different ways:
·
By
function, for example, operations, marketing, finance, fundraising, etc
·
By
region
·
By
product, for example, books, support, consultancy, delivery
·
In
work teams, for example, client/customer groups.
The hierarchical organization structure in the top management just one
person small members of employees working under his or her responsibilities and
giving report to his or her directly it his or her authority to increase or
decrease in the numbers of employees according to the organization, in
hierarchical organization structure the manger or director easily can share his
or her message with subordinate because of directly connectivity’s with top
level of management in this type of organization the top level
management easily explain below terms of organization as well for the
subordinate in the org what is the need of the organization for the future it
maybe appliance, material, or employees, it is easy to manager who to control
over all tasks of the employees and easy get information from his labors, what
is office organization, state briefly the principle of org, explain the term
org structure, what is the importance of the sound org structure, line of org,
discussion of merits, characteristic features, demerits, staff system of org,
feel is this system an improvement over
the pure line system, see advantage and disadvantage of system, plan for
financial, generally followed for the organizing of the office, discuss the org
with diagram, arranging of training of employee.
2.6.1 Commercial banks:
2.6.2 Mission Statement
To be the most preferred and convenient commercial
bank in the country through continuous innovation and
services excellence To
become one of the strongest player in the market with professional promoters in
the back ground supported by well qualified & experienced international
banking professionals in the management and to raise the capacity and maintain
a team of committed and motivated national talent with high work ethics for
providing excellent customer satisfaction in order to make value addition to
all the stake holders viz Shareholders, customers, staff and ultimately to the
society at large
2.6
.3 Vision Statement
To provide customers with the most comprehensive and state of the
art financial solution for establishing long lasting associations through
committed and motivated professionals with our relentless efforts to bring
finest banking experience in Afghanistan we ensure to create more value and
exceed the expectations of the stakeholders and the society To emerge as one of the strongest
international commercial banking institutions in Afghanistan with state of art
technology and innovative products & services to act as a strong catalyst
for economic growth and business prosperity in the economic reconstruction
process of Islamic Republic of Afghanistan. By leveraging the technological
innovations, Maiwand Bank will certainly create a true partnership with the
private and public sectors in establishing a modern international commercial
bank to meet Afghanistan’s financial services needs in strict compliance of
laws and regulations by international banking standards and best practices.
. 2.7 Core values:
Values
are the underpinning of Maiwand bank’s operations. They reflect Maiwand bank’s
identity and influence Maiwand bank’s course and direction. Every Maiwand bank staff
member is expected to exhibit the Maiwand bank core values in every task
execution.
The
core values of Maiwand bank are the following:
- Commitment to Serving Public
Maiwand
bank is dedicated to complete the needs of the public and pave the way for
those people who are jobless.
- Stakeholder Orientation
Maiwand
bank takes pride in offering the best services to its stakeholders containing
the government for which it acts as an active agent.
- Ethics and Integrity
Maiwand
bank is committed to upholding professional ethics and integrity in all its
activities and try its best to take active part in the society.
- Transparency
Maiwand
bank Accepts and welcomes public scrutiny of all its actions
- Leadership By Example
Maiwand
bank is dedicated to practicing what it preaches at both the organizational and individual
levels.
- Teamwork
Maiwand
bank is committed to work together within and across organizational divisions.
- Equity and fairness
Maiwand
bank is faithful to the fair treatment of customer, employees, and other
stakeholders. This includes a conductive working environment and gender
sensitivity and it will always take care of equity and fairness.
- Confidentiality
Maiwand
bank maintains appropriate confidentiality in all transactions with its
customers, employees, and other stakeholders.
2.8 Objectives and Main Tasks of Maiwand Bank
1.
The primary objective of Maiwand bank shall be to achieve and dominating
domestic price stability.
2,
The other objectives of Maiwand bank which shall be subordinated to the primary
objective of Maiwand bank Shall be to foster the liquidity, Solvency and proper
functioning of a stable market based financial system, and to promote a safe,
sound and efficient national payment system Afghanistan.
3.
Without prejudice to its primary objective of domestic price stability Maiwand
bank shall support the general economic policies of the Government of
Afghanistan, and to contribute to sustainable economic promotion.
4.
The basic tasks of Maiwand bank for which Maiwand bank shall be exclusively
responsible are:
A.
to formulate, adopt and execute the monetary policy of Afghanistan.
B.
to formulated, adopt and execute to foreign exchange policy and exchange
arrangements of Afghanistan;
C. to hold and organize to official foreign
exchange reserves of Afghanistan;
D. To print and issue Afghani banknotes and
coins:
E. to act as banker and adviser to, and as
fiscal agent of, the state;
F. to license for register and to regulate
and supervise banks, foreign exchange
Dealers,
money service providers, payment system operators, Securities service
providers, securities transfer system operators and such others as shall be
submitted to its oversight by or pursuant to the law
2.10
Our Business Principles and operational ethics
- Maiwand bank invest for it clients and for the satisfaction of clients.
- We respect and see to our client as our business partners.
- We need trained and qualified employees in bank and we arrange training for employees.
- Never invest clients’ money for our own profit and keep trust of our clients in every time of life.
- We always try to fulfill our client need which we promise them.
- We promise our clients which we can deliver to them and never promise which we cannot deliver to them.
- We honestly keep the money and return to those who trust us.
- We know our responsibilities which we have and know how to keep trust of our clients.
- We try the best to increase the value for all the stake holders.
- We do not think this clients is better than that client because of skin color, language, religious and gender.
- We are very strictly honest or careful when we select our clients.
- In the selection of clients we must know the source of income and legality business of clients.
- We strongly following these procedure and compliance of the laws.
2.11 Banking software (CBS)
Banking
software is software the banking sector use for easily recording of transaction
before 2001 the transaction recorded in the book it means that there were
bookkeeping record in the central bank of Afghanistan when the private
commercial banks start their work in the Afghanistan the started the recording
of the transaction in their own banking software, this is the best way for
banking sector because in the booking keeping recording there were a lot of
mistake by in the recording of transaction but in software recoding transaction
this problems solved and Maiwand bank has it owned software to record the
transaction easily and secure, Maiwand bank software are POS, internet banking/
SMS Mobile banking/ call center/ ATM as well Maiwand bank clients can take
advantage of banking facilities 24 hours and 365 days of the year anytime and
anywhere.
2.12
IT Department
IT
department it is a department which means information technology this
department has all information of the organization or bank with itself and
making good facilities for the employees and bank Management Maiwand bank also
has active and professional IT employees for controlling of daily activities of
the bank all the data or information of the bank maintained with central
Management, keeping connectivity’s all
branches of bank anywhere and anytime provide to the clients good facilities of services such
as securities, mobile banking, SMS facilities etc.
2.13
Ladies Banking:
Maiwand Bank
starting ladies banking in Kabul in shar-e- naw city the most secure and safe
location for ladies shopping centers in capital of Afghanistan, Maiwand bank
opening special branch of banking sector for ladies intend to set historical
event(milestone) for the local banking industries, this section of banking are
organizing and managing by well trained, talent and professional female banking staff at the ladies bank
branch, these ladies which are employees in the bank branch are qualified and
attend to their banking needs quickly and efficiently in complete privacy,
confidentiality and convenience that really deserve, this special branch
provides good bank facilities to ladies of Afghanistan by dedicated
professional and good behavior ladies staff, it is also the rule and regulation
of Maiwand bank to respects ladies client.
2.14 Organization
Structure of Maiwand bank:
Branch Manager |
|
 |
   |
Customer Service Department
|
|
|
|
2.15
Comments on the Organization Structure
Maiwand
bank is commercial bank this bank is made up of individuals and persons of
trained and educated .it means that employees of Maiwand bank are competent and
talented
They
take their jobs very well, Maiwand bank has centralized policy, centralized
organizational structures rely on one individual to make decision and provide
directions for the company. I thank centralized organizational structure is
more beneficial for Maiwand bank or any banking sector.
Centralized
organizations can be extremely regarding business decisions
Business
owners typically develop the company’s mission and vision, and set objectives
for manager and employees to follow when achieving these goals.
Decentralized organizations utilize individual’s whit
a variety of expertise and knowledge for running various business operations.
2.16
Number of Employees
The
total numbers of employees work in Maiwand bank are more then 1800 which
include foreign employees as well; nangarhar branch has 45 employees with two
branches
Maiwand
bank jalalabad branch is located in mukhabirat chawk it has 45 employees
working together for achieving of organizations goal of the bank.
Jalalalabad
branch staff has to achieve the goal which is set there from the top management
of the maiwand bank which is they must have more then two hundred and fifty
millions AFG deposit at the end of every month
The
mentioned target is divided in such a way that.
50%
of the target should achieve by branch manager, and the remaining 50% will
distribute amongst the remaining staff.
2.17
Main Offices of Maiwand Bank
Maiwand bank headquarters is strategically located at Turabaz khan
square, share-e-naw, Kabul
Afghanistan,
the most commercial part of Kabul,
the capital city of Afghanistan,.
This provides a central location accessible from different parts of Kabul. And as per the
vision and mission statement of the bank, it is planning to open in most of the
commercial areas of Kabul along with in all provincial capitals of the country
to provide the banking services across the country
CHAPTER 3
PLAN OF MY INTERNSHIP PROGRAM
3.1
Branch where I did internship:
Maiwand
bank is the fastest emerging strong commercial bank in Afghanistan,
established and commenced banking business from 1st June, 2009, opened by one of its
shareholder government and businessmen representatives in Jalalabad.
Bank plays an active and important role in the
economic development of a country if the banking system in a country is
effective efficient and disciplined it bring about a rapid growth in the
various sectors of the economy. This
bank provide the facilities of banking to Jalalabad peoples
Maiwand bank Jalalabad branch is strategically located at Chawk-e
Bazaz-e, Jalalabad Afghanistan, and the most commercial part of jalalabad 1th Dec, 2014 to 1th Feb,
2015 two months internship with Maiwand bank have practice in all sections of
the mention bank.
3.2
Starting ending date of my internship report
I practically started my internship
report activities in Maiwand Bank effective from 1, Dec, 2014 and completed my
internship report at 1, Feb, 2015 which took about two months
3.3
What I did in my internship
3.3.1
Cash Department
In
this department I learned how to collect cash from the people and we daily
received cash from the people as current account and give cash to the public as
loans and daily dealing now I can cash management and know the meaning of cash
management and I also knew that how to save cash and invest my cash on those
projects which we can get daily cash like factories of ice cream, chocolate, it
is one of duties of Maiwand bank to give people long term loan and short term
loan to invest in these projects which we can get daily cash and earning more
money from these projects.
3.3.2
Finance department
In
finance department I got much knowledge about finance and learned how to
analysis the company income statement and plan for the next year budget it
means that how to make budget for the next year which we will have in the
future budget all things such as daily budget, monthly budget, yearly budget
Finance department prepared budget for every departments of Maiwand bank.
3.3.3Marketing
department
Maiwand
bank have marketing department in a week very three days of the week one member
of Maiwand bank go to the market and ask people about Maiwand bank services and
distribute the brusher and newspaper of Maiwand bank four days of my working
there in Maiwand bank I went to the jalal abad city and collect some
information about Maiwand bank for the Marketing department of Maiwand bank and
Maiwand bank mostly do there marketing on TV, radio, newspaper, boards, and
elect ration boards.
3.3.4
Account opening department
I
worked in the account department for one week and I practiced a lot of thing
there such as opening account of current account, fix account, Islamic account
( musharaka and mudarabi) accounts in making account or opening account of
current account is by 200 dollar exchange of 10000 Afghani , saving account by
100 dollar exchange of 5000 Afghani and sending of cheque for the first time is
free than it has 5 dollar charges.
CHAPTER 4
DEPARTMENTALIZATION AT
THE BRANCH LEVEL
Finance
and accounting department has it main role in the bank because of its duties
and responsibilities this department every start the next year make decision of
finance it means budgetary plan, for
every department of the bank and as well for external projects of the bank,
finance department help other department on their duties and responsibilities
of day to day and also introducing the ways for implementation of those
decision which made by finance and accounting department, financially planning
of next year prepared by finance and account department it maybe in Advancement
sector, construction sector such as markets for selling, apartment for rent,
and industrial sector and indicate how to implement in Afghanistan .
The activities
expected from a finance department cover a wide range from basic
bookkeeping to providing information to assisting managers in making
strategic decisions. What to expect from your finance department will
depend largely on factors such as how much involvement the owner/manager has in
the organization much responsibilities as below
- Providing budgetary systems in annually , monthly , and daily budget base;
- It is the responsibilities of finance department Cash management and Bank Management;
- Preparing of Vouchers of payments it maybe salary payments, purchasing payments or others payments and proper Processing of Payments;
- Transaction of Maiwand bank recorded in it own banking software so safe and secure;
- Dedicating of Financial Statements( income statement , balance sheet)for top management to show the bank profit and loss and in balance sheet show the capital, assets and liabilities of bank in the end of every year;
- Preparation of Invoices(mention rates of all things) for the costumer to inform them about rates on Customer Parties;
- Dealing Honestly and controllable method with costumer in daily transaction ;
- Finance and account department information must suitable in financial decision making which is made by the top level management and identified the ways for implementation ;
- It the duties and responsibilities finance and account department coordinating to procurement, HR, and others department up to achieve the org goals.
- Saving and controlling assets of the Company who much is available and loss during the operation of the businesses;
- Financially coordination and help other international companies it maybe loan, transfer of money, and payment;
- Report on project wise profitability;
- Dealing with Government Departments it maybe investment, payment of salary, and education sector or other task related to bank and Local Authorities;
- Statutory Audit of the accounts of the Company; etc
4.2
Human Resources Department
Human
resources department has the main role in bank this department has full
authorities and responsibilities of hiring and firing in organization and try
to find qualified, talent and professional employees for the bank for working
honestly and doing right job on right time, with the growing realization of
proper HR in the corporate sector it will grow into important activities of the
bank, New idea is the ways for HR to organize and support employees and banking
sector in their daily work, every bank or financial institution involved in
various function on their every days job for the fulfillment of function need
for highly effective team and appropriate manpower to run these function, all
matters relating to the development and effective utilization of the Human
Resources of the Company plays the key role in the formation of Human Resource
Development policies and strategies and their implementation there are options
that related to HRM mention as below.
- More emphasis on professional, education, and training
- The employer must control and think about current situation of employer
- Conducting disciplinary enquiries and selecting of professional team
- Handling sensitive activity through respective professional employees
- Recruitment is a routine function of HR hire people educated
- Identifies hiring need it means where need, for which duties need, develops the position description, Recruitment Plan, organizational chart and other recruitment related documents
- May serve as Search Committee Chair and identifies Search Committee members
- Conducts recruitments showing good faith efforts to broaden diversity
- Ensures understanding of collective bargaining agreements’ specific provisions with respect to filling of bargaining unit positions
- Strongly decision making capacity and greatly emphasized by the employers
- Works with the (HM) to prepare the job description and ensures proper procedures for review and approval are met at the department level
- Posts recruitment on selected job boards
- Routes recruitment for review and routing
- Processes final offer and finalizes the recruitment
- Notifies interviewees not selected
- Selected by the Hiring Manager and assigned to each recruitment
- Reviews applications, participates in the interview process and recommends final applicant
4.3 Account Opening Department
Banking
sector offer different type of account for their customer to open it maybe
current account, fixed account, saving account, salary account it is depend up
the customer choice which type of account they open in the bank when the
customer come to the bank first all the account opening department meet them
his or her before at all this department explain all rule and regulation of the
bank for her or his, for example explain that they must have ID card or any
other card of office, required money by which the bank open account, interest
the bank have interest system it is belong to the customer if they want or do
not want, explain history of the bank, and how much photos require.
·
Be honest and keep
reality in their daily businesses
·
Secure against
unintended over draft.
·
Attention for
proper care and give awareness to client bank careful for them.
·
Collection
information about clients and dedicate to top level management.
There
are certain formalities, which are to be observed for opening account with a
bank.
·
Written
application for administration of the bank to open account in formal form
·
Identification of
client in details
·
Signature or fingerprint of client in formal
paper
·
Show the minimum
money require for opening account for different type of account
·
Making account for
clients in good ethical behavior
·
Give cheque for
client and explain that
This
is a department while the customer is come to the bank and want to open account
in Maiwand bank, for the first time to make an account in Maiwand bank this
department starting interview with client asking some question from client
about his or her life, explain the rule and regulation of the bank what are the
rules and regulation which the bank following in the Afghanistan, during the
interview mention those requirement which require and necessary for opening
account, in the period of interview the employee of the bank entering new or
unique data to the bank software to sharing this new data to all branches of
Maiwand bank in Kabul as well in provincial branches, Maiwand bank also has
forms which they filling that during interview it is call KYC (know your
customer), the employee of the bank
share info of the client by flax cube to head office to provide card for
customer.
We
made two type account in the Maiwand bank individual AFS or USD and corporate
AF or USD
· Individual:
(1)
Individual USD
: the bank made this type of account for
single person or his/ herself USD
(2)
Individual AFS:
this type of account same as above but it is in AFS.
·
Corporate
i)
Corporate USD:
this account is for corporation or large businesses or companies in this type
of account president and vice president of the corporation can deposit and
withdrawal money from bank it means both of them authorize person for bank in
this type account include corporate finance, capital finance, credit extension,
trade services, foreign exchange an treasury services.
ii)
Corporate AFS:
this corporate account the client can open in AFS as well.
[B5] 4.4.
Remittance Department
A remittance is a transfer of funds
to an overseas account. For example, if you need to send money to your child
who is studying overseas or help your maid to send money back to his/her
country, you may do so by arranging for a remittance with an authorized
remittance agent.
4.4.1
Telegraphic Transfer (TT)
T/T stands for telegraphic transfer,
a form of bank transfer. T/T payments are a cheap and fast way of transferring
money overseas through most banks the customers for
ordinary mail to keep the record, TT charges are taken from customer, no excise
duty is charged on TT, and the TT charges are:
Telegram
charges on TT= actual minimum USD.75
4.4.2 Swift
Swift is stand for (worldwide interbank financial telecommunication) the
task and duties of this financial institution are messaging financial
transaction and exchanging among member of banks and financial institution,
multination companies, and main securities firm this services for the first
time started in Belgium law in 1977 corporative organized by Belgium law, now
in these days has 6500 participating members in the world and more than 208
countries process in excess of 300 million message daily.
If any cooperative organization owned has membership with worldwide
interbank telecommunication (Swift)[B6]
this cooperative organization can send their message so secure, safe and stablish
format and now these days thousands of trading banks, securities firms and
corporation around the world use this worldwide interbank telecommunication
(Swift) system.
Over 8468 banking sector in world have membership with Swift the
headquarter is located in Belgium and has it major financial centers and
development market just solely carrier message it does not hold fund or dose it
manage account on behalf of customer.
Since 2003 the central bank of Afghanistan has
transferred the fund by via swift in the Afghanistan the commercial bank in
Afghanistan now or currently offering international funds transfer some of
banks has their own facilities but others use central bank of Afghanistan it is
the demand of the banking sector cash in domestic currency(Afghani) or US
dollar to remit money or funds in Afghanistan, individual and businesses
entities need to have an account with central bank of Afghanistan and following
the below steps:
If your account is at dab: order
your financial institution abroad to initiate a swift transaction with the
following information:
Ø
Beneficiary your name or
name of your entity
Ø
Beneficiary account number your account number
at dab
Ø
Beneficiary bank- dab, Kabul, Afghanistan
Ø
Beneficiary swift bic,
afgbaka
Ø
Correspondent bank for
clearing for USD clearing use
Ø
Citibank New York citius33 account # 10920169
Ø
Bank of America bofaus
account # 629008872 for euro clearing used
Ø
Deutschebank- deutdeff
account # 400871070
If your
account is with a commercial bank: order your financial institution to
initiate a swift transaction with the following information.
Ø
.beneficiary – name of your
bank
Ø
beneficiary account number-
account number at dab for your bank
Ø
beneficiary bank- dab, Kabul, Afghanistan
Ø
beneficiary swift bic,
afgbafka
Ø
correspondent bank for
clearing ( same as above)
Ø
forward credit information:
you must have the sending bank include instruction that the transfer is for
forward credit to: your name, your account number
Ø To
remit funds from Afghanistan
to another country please contact your bank for detailed assistance.[B7]
4.4.3
Western Union:
Western
Union is a financial services and communication company of transferring money
for the first it started in America now it headquarters office in meridian
Colorado this financial services center transfer money person to person, Money
orders, Businesses payments and other commercial services because of this it
call global leader in money transfer services and it is the first
industrialized monopoly dominated as telegraph industry 19 th century but western union more than 150 years has been
connecting people globally Maiwand bank also has the facilities of western
Union providing money transferring facilities services for it costumer all over
the world this bank will help it costumer sending and receiving from near or
far places worldwide this method of transferring money is fast, convenient and
trust.
Special
features:
· Online
it means that done by internet
· Western
Union by Mobile introduce mobile money transfer services
· Sending
and receiving funds
· It
has transfer fees
· Anyone
can send and receive money through any Maiwand bank branches displaying the
western union logo across Afghanistan.
· Can
receive money as least as 7 minutes it means slightly can receive your money
anywhere.
· In
transferring money there no need of account of opening of account.
· Can
transfer your money so secure, faster, and easily.
· Complaint
with da Afghanistan bank regulations.
How
to send money:
· A
person can simply send amount go to the any branches of Maiwand showing logo of
western union.
· Step
one : complaint the form
· Fill
out the required form. The, simply show the bank representative your
identification card.
· Step
two : present the payments amount which you have to transfer
· Give
the bank representative the form, cash and sign the receipt.
· Step
three: get the receipt
· Your
receipt will have MTCN (Money Transfer Control Member) that will allow you.
Ex:
How to send money?
·
Ask customer to
fill quick form;
·
Sender name
·
Receiver name
·
Reason for send
·
Amount
Tell
customer about financial details.
·
Charges &
exchange rate
·
Net amount
including charges (principle + charges)
How
to receive money
· Step
one: visit Maiwand bank branches in
every province of Afghanistan
Provide the bank
representative with the following information:
· The
money transfer control number (MTCN) from your sender’s receipt its required
· Sender’s
must issue his or her issue first and last names
· Mention
of Country and city the money was send
from
· The
amount that was send how much is that
· Identified your first and last names, address, and
telephone number
· Step
two: identify yourself who are you
· Simply
give the bank representative your identification card (ID card).
· Step
three: sign the receipt of money
· So
carefully review and sign the receipt that bank representative gives you.
· Step
four: check, calculate and receive the money
The bank representative will give you
the money that was sent to you with a copy of the receipt and you are on your
way.
Charges
Maiwand bank does not charge any fee/commission
from the receiver against money received through western union.
As an affiliate of westron union, we
as maiwand bank offer our customers the convenience of money transfer services
through our several designated branches.
4.5 Cash Department
Cash department performs the
following functions
Receipt
Cash department is one of the
important department in bank which perform the function of coming money and
outgoing of money to bank all deposit of client control by cash department by
the name of ledger account, the bank make for every client their own ledger
card.
Payments
Banker is responsible to repay the
money the person from whom he or she received money usually by honoring cheques.
Cheques and Their Payment
The negotiable instruments. Act, 1881
“Cheque is a bill of exchange drawn
on a specified banker and not expressed to be payable otherwise than on
demand”.
Since a cheque has been declared to
be bill of exchange, it must have all its characteristics as mentioned in
section 5 of the negotiable instruments act, 1881.
Therefore, one can say that a cheque
can be defined as an:
“an unconditional order in writing
drawn on a specified banker, signed by the drawer, requiring the banker to pay
on demand a sum certain in money to, or to the order of, a specified person or
to the bearer, and which does not order any act to be done in addition to the
payment of money (Law of banking by dr. hart, p.327).
The Requisites of Cheque
There is no prescribed form of words
or design of a cheque, but in order to fulfill the requirements
mentioned in section 6 above the cheque must have the following.
·
It should be in
writing
·
The unconditional
order
·
Drawn on specific
banker only
·
Payment on demand
·
Sum certain in
money
·
Payable to a
specific person
·
Signed by the
drawer
Parties to cheque
The normal cheque is one in which
there is a drawer, a drawer banker and a payee, or no payee but bearer.
·
The drawer
·
The drawee
·
The payee
Types
of cheques
Bankers
in Afghanistan
deal with three types of cheques
a)
Bearer
cheques
Bearer cheques are cashable at the
counter of the bank. These can also be collected through clearing.
b)
Order
cheque
These types of cheques are also
cashable on the counter but its holder must satisfy the banker that he is the
proper man to collect the payment of the cheque and he has to show his
identification. It can also be collected through clearing.
c)
Crossed
cheque
These cheques are not payable in cash
at the counters of a banker. It can only be credited to the payee’s account. If
there are two persons having accounts at the same bank. One of the account
holder issues a cross-cheque in favor of the other account holder. Then the cheque
will be credited to the account of the person to whom the cheque was issued and
debited from the account of the person who has actually issued the cheque.
Payment of Cheques
It is a banker’s primary contract to
repay money received for his customer’s account usually by honoring his
cheques. Payment of money deposited by the customer is one of the root
functions of banking. The acid test of banking is the receipt of money etc.
from the depositors, and repayment to them. This paying function is one, which
is the distinguishing mark of a banker and differentiates him from other
institutions, which receive money from the public. However the banker’s legal
protection is only when payment is in ‘Due Course’ the payment in due course
means payment in accordance with the
apparent tenor of the instrument, in good faith and without negligence to any
person in possession thereof under circumstances, which do not afford a
reasonable ground of believing that he is not entitled to receive payment of
the amount there in mentioned. It is a contractual obligation of a banker to
honor his customer’s cheques if the following essentials are fulfilled.
·
Cheques should be
in a proper form:
·
Cheque should not
be crossed:
·
Cheque should be
drawn on the particular bank:
·
Cheque should not
mutilated:
·
Funds must be
sufficient and available:
·
The cheque should
not be postdated or stale:
·
Cheque should be
presented during banking hours:
4.6
Operation Department
Operation department also an
important department in the bank which control over all activities of the bank
and it is the responsibilities of operation department to control the whole
systems of branch and authorize the big and huge transaction which is making by
cahier of the bank.
Internal audit department is an independent
department it object is assurance and consulting activities designed to add
value and improve an org operations it helps an org to accomplish its
objectives by bringing a systematic, discipline approach to evaluate and the
effectiveness of risk management, internal auditors test and evaluate internal
control in all areas of the bank and collect a report to top level management
on finding and recommendation of them this department start auditing consisting
of at least 3 person jointly from finance department, account department,
operation department, and Administration department outstandingly good nature
of payment will refer to the internal audit department for suitable
verification and investigation.
Every end of the year independently audit the
financial statement by external, qualified and experienced chartered accountant.
Develop an understanding of the business area under
review, it involve objectives, measurement, and key transaction types.
Describe the key risk facing the business activities
Identify management practices properly control and
monitored
The report of audit must be objectively, clarity,
brevity, timeliness and accuracy
All the reports will be submitted to the Finance
& Accounts Department in English language only. Submission of reports other
than English language will not be accepted in the Finance & Accounts
Department.
4.8
Islamic Banking Department
Islamic banking
is that kind of banking which process with the principle of Shariah or Islamic
ruling and it is an application to development of Islamic economics in Islamic
banking or ruling of shariah prohibits payment or acceptance of riba for the
lending and acceptance or money as well as carrying out trade or other
activities to make facilities of services and products in considered in
contrary to its principle, at less it has 20th century history in
lslamic banking purpose is just development of Islamic economics in Islamic
banking must following the recorded saying and action of prophet Muhammad (ص), islamic
banking the method of ethical financing and the way to show for all the world
muslim and others ethical operation of financing, now in these days in Islamic
countries and other countries in the world these method of Islamic financing applied
because our prophet Muhammad ص done with his wife
trading operation or Islamic partnership (mudarabah) dominated as Islamic
method of financing in day to day businesses, in generally Islamic law also
prohibit trading in financial risk( which is seen as a form of gambling) in
Islamic banking this kind of investment called unlawful or haram, Islamic
financing or banking at less 30 year ago common in the all over world now a lot
commercial bank in the world doing western and as well Islamic banking Islamic
banking doing by muslim and non-muslim bank in world. Maiwand bank also has the
department of Islamic banking in Kabul and other branches of Maiwand bank
providing Islamic banking under Islamic method and law ( shariah) or regulation
of islam it means following Islamic principle”.
Following Islamic Banking
Applications are in used in Maiwand bank
Musharka
(Partnership)
Musharakah is the one
of method which Islamic banking offer to all the providers of money or capital
have an agreement between each other’s and investment of their capital in
business enterprise and others in law of shari ah, both parties provide capital
for financing in the project, both
parties share profit on pre agreement ratio, share losses on basis of equity
participation, this word derived from Arabic language word sharikah which means
making partnership, all the participants can participate in daily management of
the business but if not necessarily require to do this it means that every
parties can take part in management of the venture is carried by all or some or
just one party member, all the participants included in the contribution of
financing of a venture, all the parties share their profit on pre agree ratio
if there losses are shared to each parties equity participation, the profit distribute between the participants
in predetermined ratios in the loss is borne by each partners in proportion of
his contribution in other means the profit distribute according to an agreed
ratio, which need not be the same as the capital proportion. However, loss are
shared in exactly the same proportion in which the different partners have
provides finance for the business.
Mudaraba
Mudarabah is the method of Islamic
financing in to two person or two parties with each other on the basis of
partnership where the capital owner of the businesses providing capital and the
other puts his or her management skills in to the business. Capital of the
owner is not involved in the actual day to day operation of business after
expiry of the period it maybe termination of the contract return are obtained
from the business, the capital owner gets back his principal amount together
with a pre agreed share of profit, both parties must agree on the ratio in
which profits will be shared between them, the capital of owner may not have
the ability or the experience to run a profitable businesses, on the other
hand, agent(the mudarib) may not have adequate capital to invest in a business
or projects, therefor by entering into a contract of mudarabah each parties
compliments one another, allowing a business venture to be financed.
Steps of Mudaraba
Mudarib use his or her effort and
abilities for the investment of capital in exchange for sharing in profit that
both parties made agreement, the duties of the bank is providing capital as
capital of the owner.
1. The Results of Mudaraba: the
end of period according to agreement which agreed by both parties, both parties
calculate the earnings and distribute the profit at end of mudarabah, the
subject is to distribute legally and honestly.
2. Payment of Mudaraba Capital: first
at all the bank recover all the mudarabah capital contribute before distribute
the profit which gain from the business among both parties because of the
profit is considered guarantee for the capital.
Difference between Islamic Conventional
Financial Systems
A
survey of the literature point outs that there are numerous experimental
studies that tries to look into the relative efficiency of financial
institutions operating within a country (and in some cases between
countries). Generally, these studies
differ in the specific methodology used and the type of banks considered in the
study sample. This reviews some of these
studies by well-located dividing them into works on bank efficiency in general
and comparative efficiency between Islamic and conventional banks. Every
Islamic bank has a committee of religious advisers whose view is sought on the
acceptability of new instruments and who provide a religious audit of the
bank's accounts. In Islam moral and equitable values form an integral part of
the law governing contractual and financial relations to such an extent that
the relationship between equity, law and religion is central to all business.
Table 1 and Table 2 compare the Islamic financial instruments and practices
with those of conventional banking.
|
Islamic
Bank (La Riba)
|
Conventional
Banking (Riba Based)
|
|
Dominant
Attractor
|
|
|
As
advised by God in all Abrahamic beliefs and Faiths, as declare by law of Judeo-Christian-Islamic Value system and way
of life
|
Money
|
|
Defining
Purpose
|
|
|
All
the resources presented by employs it means fulfill the basic need of
everyone without more spending
|
Providing
money by spending money for those who have it
|
|
Bank
size
|
|
|
It
is in small and medium size bank
|
Very
large with huge amount (Mega-banks)
|
|
Ownership
|
|
|
In
this perform an acting with shareholder as personal in role , direction and
procedure of bank
|
It
is and impersonal method of banking with stay away shareholder role in
different cases
|
|
Financial
Capital
|
|
|
Financing
local and national with clear community boundary and estimate the value of
areas
|
Globally,
With no border with broad range
|
|
Purpose
of investment
|
|
|
Purpose
of the investment is make incensement in production for community to provide
to rich and success
|
Just
incensement of a person gained profit, wealth and properties
|
|
Role
of profit
|
|
|
An
incentive to invest productively in the community
|
An
be end Maximized
|
|
Coordinating
mechanisms
|
|
|
Self organizing market
and networks of communication around temples, synagogues, churches, Masajid,
and other Social congregations and networks
|
Centrally planned by
Mega-corporations
|
|
Cooperation
|
|
|
Among people and
communities to advance the common good for all
|
Among competitions, to
escape the discipline of competition and in some cases to avoid regulations
|
|
Purpose of competition
|
|
|
Stimulate efficiency
and innovation
|
Eliminate the unfit and
capture markets
|
|
Government’s Role
|
|
|
Advance the human
interest, as revealed in all God’s message
|
Protect the interest of
property
|
|
Trade
|
|
|
Free , But fair and
balanced
|
Free, but for the
benefit of mega corporations
|
|
Political orientation
|
|
|
Populists, democracy of
persons
|
Elitist, Democracy of
the money(greed is good!)
|
This
comparison is based on a comparison originated by Professor David C. Korten; it
was adapted by the author to compare conventional riba-based banks with riba-
free banks. David C. Korten, the post-corporate world, a co publication of
Kumarian press Inc. and Berret Koehler publishers, Inc, 1999
Chapter 5FINANCIAL STATEMENTS ANALYSIS.
5.1 Statement of
Financial Position
5.2
Statement of Comprehensive income
5.2.1 Common Size Analysis
(Vertical and Horizontal):
The term "trend analysis" refers to the concept of collecting
information and attempting to spot a pattern, or trend, in the
information. In some fields of study, the term "trend analysis" has
more formally defined meanings. Although trend analysis is often used to predict future events, it could
be used to estimate uncertain events in the past. Financial statement
information is used by both external and internal users, including investors,
creditors, managers, and executives. These users must analyze the information
in order to make business decisions, so understanding financial statements is
of great importance. Several methods of performing financial statement analysis
exist. I will discuss two of these methods: horizontal analysis and vertical
analysis.
vertical
analysis
MAIWAND
bank
Balance
sheet
as
on as on dec 31, 2013 and 2012
|
|
|
|
Common size
Analysis $ in (000)
|
|||
|
Asset
|
2012
|
2013
|
2012
|
2013
|
|
|
|
Cash and cash equivalents
|
4815547
|
3934146
|
26.52487
|
172.7688
|
|
|
|
Loans and advance to customers
|
3391243
|
2678555
|
38.95858
|
245.3307
|
|
|
|
Investment in subsidiary
|
18722
|
17199
|
6067.37
|
44438.42
|
|
|
|
Property and equipment
|
680699
|
560181
|
186.2839
|
1222.238
|
|
|
|
Intangible assets
|
206767
|
158263
|
659.3626
|
4023.737
|
|
|
|
Deferred tax assets
|
254115
|
213315
|
489.1953
|
3274.014
|
|
|
|
Other assets
|
1054392
|
703204
|
148.3961
|
789.0577
|
|
|
|
Total assets
|
10402763
|
8247664
|
12.65239
|
79.97645
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
Deposit form bank
|
200579
|
1348713
|
77.37206
|
4147.872
|
|
|
|
Deposit from customers other liabilities
|
8245763
|
4883659
|
21.36773
|
100.8974
|
|
|
|
Other liabilities
|
822964
|
618633
|
168.6827
|
1010.951
|
|
|
|
Total liabilities
|
9269306
|
6851005
|
15.23174
|
89.75603
|
|
|
|
Equity
|
|
|
|
|
|
|
|
Shared capital
|
950000
|
880000
|
118.5826
|
875.7643
|
|
|
|
Accumulated losses
|
416543
|
588756
|
177.2427
|
1997.335
|
|
|
|
Total equity
|
1366543
|
1468756
|
71.04836
|
608.8181
|
|
|
|
Total equity and liabilities
|
1043527
|
8319761
|
100
|
100
|
|
|
|
|
||||||
Interpretation: Common
size Analysis . There is decrease
in long term assets of which mainly cause the decrease in long term advances
which are decrease in long term investment. on the liability side the total
current liability has shown change The main reason for which is increase in
current deposits, which are The longterm liability of the organization is also
decreased The main reason for this is that fixed deposits of organization
are increased which shows that there is
a slight change in the organization’s position
The common size analysis given in the
table shows that there have been unimproved in the current assets in 2013s
compared to 2012.
vertical analysis
MAIWAND
bank
consolidated
profit & loss account
as
on dec 31, 2013 AND 2012
|
Items
|
|
|
Common Size Analysis $ in(000)
|
|
|
|
2012
|
2013
|
2012
|
2013
|
|
Interest income
|
626045
|
433456
|
4.879
|
0.9879
|
|
Interest expense
|
126788
|
98723
|
7.090
|
4.8795
|
|
Net interest income
|
752833
|
532179
|
1.6754
|
5.8456
|
|
Fee and commission income
|
21146
|
44334
|
6,3451
|
0.8970
|
|
Fee and commission expense
|
9568
|
4511
|
2.876
|
3.5460
|
|
Net fee and commission income
|
107814
|
48845
|
0.8970
|
2.6573
|
|
Foreign exchange gain
|
128960
|
78520
|
9.923
|
0.7689
|
|
Gain on disposal of noncurrent asset held for
sale
|
34546
|
67860
|
3.098
|
3.3487
|
|
Other operating income
|
128960
|
78520
|
0.8796
|
2.9000
|
|
Prizes on Qismat deposit
|
4536
|
98071
|
0.8765
|
5.9080
|
|
Operating income
|
12890
|
78520
|
7.980
|
0.67580
|
|
Not impairment loss on loan and advance
|
10395
|
4666
|
0.534178
|
0.333212
|
|
Employee benefit expenses
|
6157
|
6236
|
0.316396
|
0.44533
|
|
Business development expenses
|
177259
|
143300
|
9.108988
|
10.23345
|
|
Depreciation and amortisation
|
63283
|
34241
|
3.251988
|
2.445244
|
|
Amortisation of intangible assets
|
367
|
136
|
0.018859
|
0.009712
|
|
Operating lease expenses
|
1321
|
1361
|
0.067884
|
0.097193
|
|
Other operating expenses
|
45998
|
243218
|
2.363746
|
17.36887
|
|
(loss)profit before tax
|
135911
|
163180
|
2.6789
|
12.7897
|
|
income tax
|
850000
|
42652
|
0.6786
|
9.0876
|
|
(loss)/profit for the year
|
220911
|
208832
|
2.8765
|
0.8976
|
|
Income for the year
|
1945979
|
1400310
|
100
|
100
|
Interpretation:
From Income Statement in
common size Analysis we see there is a percentage of deceases in all
Items of (2013) in minus () compare to (2012) which means losses in this
(2013) years.
The common size analysis
of the Maiwand Bank is clearly showing that the bank has shown unimproved in
its performance. The organization shows losses in this (2013) years which is a
negative sign and it will not build up the moral of the employees by which they
cannot work effectively and efficiently decreasing the performance of the bank.
4.2.2
Horizontal Analysis (index
analysis)
Methods of financial statement analysis generally
involve comparing certain information. The horizontal analysis compares
specific items over a number of accounting periods. For example, accounts
payable may be compared over a period of months within a fiscal year, or
revenue may be compared over a period of several years. It is a procedure in
fundamental analysis in which an analyst compares ratios or line items in a
company's financial statements over a certain period of time. The analyst will
use his or her discretion when choosing a particular timeline; however, the
decision is often based on the investing time horizon under consideration.
Following as an example of Horizontal Analysis of Maiwand Bank
balance sheet & Income Statement
Horizontal
analysis
MAIWAND
bank
Balance
sheet
as
on dec 31, 2013 AND 2012
Interpretation: Here will be increases & decreases in Assets.
Liabilities & Owner Equities compare to
(2013) to(2012) we cannot say correct (numerically) figures because shortages of years
horizontal
analysis
maiwand
bank
consolidated
profit & loss account
as
on dec 31, 2013 and 2012
|
Items
|
|
|
Index Analysis $ in(000)
|
|
|
|
2012
|
2013
|
2012
|
2013
|
|
Interest income
|
626045
|
433456
|
100
|
69.2372
|
|
Interest expense
|
126788
|
98723
|
100
|
77.86462
|
|
Net interest income
|
752833
|
532179
|
100
|
70.69018
|
|
Fee and commission income
|
98246
|
44334
|
100
|
45.1255
|
|
Fee and commission expense
|
9568
|
4511
|
100
|
47.14674
|
|
Net fee and commission income
|
107814
|
48845
|
100
|
45.30488
|
|
Foreign exchange gain
|
21146
|
29675
|
100
|
140.3339
|
|
Gain on disposal of noncurrent asset held for
sale
|
128960
|
78520
|
100
|
60.8871
|
|
Other operating income
|
152
|
662
|
100
|
435.5263
|
|
Prizes on Qismat deposit
|
2303
|
614
|
100
|
26.66088
|
|
Operating income
|
455558
|
229458
|
100
|
50.36856
|
|
Not impairment loss on loan and advance
|
10395
|
4666
|
100
|
44.88696
|
|
Employee benefit expenses
|
6157
|
6236
|
100
|
101.2831
|
|
Business development expenses
|
177259
|
143300
|
100
|
80.84216
|
|
Depreciation on fixed assets
|
63283
|
34241
|
100
|
54.10774
|
|
Amortization of intangible assets
|
367
|
136
|
100
|
37.05722
|
|
Operating lease expenses
|
1321
|
1361
|
100
|
103.028
|
|
Other expenses
|
168977
|
176049
|
100
|
104.1852
|
|
(loss)profit before tax
|
45998
|
143218
|
100
|
311.357
|
|
income tax
|
9200
|
28627
|
100
|
311.163
|
|
(loss)/profit for the year
|
36798
|
114591
|
100
|
311.4055
|
|
TOTAL
|
2149273
|
1598384
|
100
|
2504.104
|
Interpretation: in Index Analysis Compare (2013) to (2012) the percentage of net income
of (2013) is in minus () which means the losses in this (2012) year. The Index
analysis of the Maiwand Bank is clearly showing that the bank has shown The common
size analysis of the Maiwand Bank is
clearly showing that the bank has shown unimproved in its performance. The
organization shows losses in this (2013) years which is a negative sign and it
will not build up the moral of the employees by which they can work
ineffectively and inefficiently decreasing the performance of the bank. in its
performance. The organization shows losses in this (2013)
years which is a negative sign and it will not build up the moral of the
employees by which they cannot work effectively and efficiently decreasing the
performance of the bank.
5.3 Ratio
analysis:
Financial ratios are
useful indicators of a firm's performance and financial situation. Financial
ratios can be used to analyze trends and to compare the firm's financials to
those of other firms. Ratio analysis is the
calculation and comparison of ratios which are derived from the information in
a company's financial statements. Financial ratios are usually expressed as a
percent or as times per period. Ratio analysis is a widely used tool of
financial analysis. It is defined as the systematic use of ratio to interpret
the financial statements so that the strength and weaknesses of a firm as well
as its historical performance and current financial condition can be
determined. The term ratio refers to the numerical or quantitative relationship
between two variables. With the help of ratio analysis conclusion can be drawn
regarding several aspects such as financial health, profitability and
operational efficiency of the undertaking. Ratio points out the operating
efficiency of the firm i.e. whether the management has utilized the firm’s
assets correctly, to increase the investor’s wealth. It ensures a fair return
to its owners and secures optimum utilization of firm’s assets. Ratio analysis
helps in interfirm comparison by providing necessary data. An inter firm
comparison indicates relative position. It provides the relevant data for the
comparison of the performance of different departments. If comparison shows a
variance, the possible reasons of variations may be identified and if results
are negative, the action may be initiated immediately to bring them in line.
Yet another dimension of usefulness or ratio analysis, relevant from the view
point of management is that it throws light on the degree efficiency in the
various activity ratios measures this kind of operational efficiency.
a)
Liquidity ratios
b) Leverage ratios
c)
Profitability
ratios
Several
financial services provide composite data on various industries. The following
are the different sources of financial services that provide the industry
medians and averages over industries.
·
The Department Of
Commerce Financial Report
·
Robert Morris
Association Annual Statement Studies
·
Standard And
Poor’s Industry Surveys
·
The Almanac Of
Business And Industrial Financial Ratios
·
Dun And Bradstreet
·
Value Line
Investment Service
a) Liquidity ratios
Liquidity ratios
measure a firm’s ability to meet its current obligations. These include:
Current ratio:
Current ratio = current assets /
current liabilities
This ratio
indicates the extent to which current liabilities are covered by those assets
expected to be converted to cash in the near future. Current assets normally
include cash, marketable securities, accounts receivables, and inventories.
Current liabilities consist of accounts payable short term notes payable,
current maturities of long term debt, accrued taxes, and other accrued
expenses. Current assets are important to businesses
because they are the assets that are used to fund day-to-day operations
and pay ongoing expenses.
Maiwand
bank
|
Year
|
2012
|
2013
|
|
Current assets
|
8247664
|
10402763
|
|
Current liabilities
|
6151005
|
9269306
|
|
Current ratio
|
1.07
|
1.06
|
Interpretation:
The
ratios for the last 2 years are 1.07 & 1.06, shows below standard of 2:1
which means efficient use of funds but at the risk of low liquidity.
Sales to working capital:
Sales to working capital = sales /
working capital
Sales to working capital give an indication of the turnover in
working capital per year. A low working capital indicates an unprofitable use
of working capital.
Maiwand bank
|
Year
|
2012
|
2013
|
|
Sales
|
433456
|
626045
|
|
Working capital
|
588756
|
416543
|
|
Sales to working capital
|
0.6 times
|
0.9 times
|
Interpretation:
This
liquidity ratio for the years 2012 & 2013s 0.6 & 0.9 times
respectively, compared to standard ratio 2:1 this ratio is lower which shows
low short term liquidity efficiency at the same time holding less than
sufficient current assets mean inefficient use of resources
Working capital:
Working capital =
current assets – current liabilities
A measure of both
a company's efficiency and its short term financial health. Positive working capital means that the company is able to
pay off its short term liabilities. Negative working capital means
that a company currently is unable to meet its short term liabilities
with its current assets (cash, accounts receivable and inventory).
Also known as "net working capital", or the "working capital ratio".
Also known as "net working capital", or the "working capital ratio".
Maiwand bank
|
Year
|
2012
|
2013
|
|
|
Current assets
|
8247664
|
10402763
|
|
|
Current liabilities
|
6851005
|
9269306
|
|
|
Working capital
|
|
1133457
|
Interpretation:
It
is very clear from the above calculations that the working capital of the bank
is gradually increasing over the years, which shows good short term liquidity
efficiency
b) Leverage ratios:
By using a combination of assets, debt,
equity, and interest payments, leverage ratio's are used to understand a
company's ability to meet it long term financial obligations. Leverage ratios
measure the degree of protection of suppliers of long term funds. The level of
leverage depends on a lot of factors such as availability of collateral,
strength of operating cash flow and tax treatments. Thus, investors should be
careful about comparing financial leverage between companies from different
industries. For example companies in the banking industry naturally operates
with a high leverage as collateral their assets are easily collateralized.
These include:
Debt
ratio:
Debt
ratio = total debt / total assets
The
ratio of total debt to total assets, generally called the debt ratio, measures
the percentage of funds provided by the creditors. The proportion of a firm's
total assets that are being financed with borrowed funds. The debt ratio is
calculated by dividing total long-term and short term liabilities by total
assets. The higher the ratio,
the more leverage the company is using and the more risk it is assuming. Assets
and liabilities are found on a company's balance sheet.
Maiwand
bank
|
Year
|
2012
|
2013
|
|
Total debt
|
6851005
|
9269306
|
|
Total assets
|
8247664
|
10402763
|
|
Debt ratio
|
0.84
|
0.89
|
Maiwand
bank
Calculating the debt ratio, we came to see
that this company is highly leveraged one
Debt
to equity ratio:
Debt
to equity ratio = total debt / total equity
The
debt to equity ratio is the most popular leverage ratio and it provides detail
around the amount of leverage (liabilities assumed) that a company has in
relation to the monies provided by shareholders. As you can see through
the formula below, the lower the number, the less leverage that a company
is using. The debt to equity ratio gives the proportion of a company (or person's)
assets that are financed by debt versus equity. It is a common measure of the
long term viability of a company's business and, along with current
ratio, a measure of its liquidity, or its ability to cover
its expenses. As a result, debt to equity calculations often only includes long
term debt rather than a company's total liabilities. A high debt to equity
ratio implies that the company has been aggressively financing its activities
through debt and therefore must pay interest on this financing.
Maiwand
bank
|
Year
|
2012
|
2013
|
|
Total debt
|
6851005
|
9269306
|
|
Total equity
|
1468756
|
1366543
|
|
Debt to equity ratio
|
5.25
|
7.35
|
Interpretation
We can see from the above calculations
that this ratios continuously increasing in the last two years.
c) Profitability ratios:
Profitability is the net result of a
number of policies and decisions. This section of the discusses the different
measures of corporate profitability and financial performance. These ratios,
much like the operational performance ratios, give users a good understanding
of how well the company utilized its resources in generating profit and
shareholder value. The long term profitability of a company is vital for both
the survivability of the company as well as the benefit received by
shareholders. It is these ratios that can give insight into the all important
"profit". Profitability ratios show the combined effects of liquidity,
asset management and debt on operating results. These ratios examine the profit
made by the firm and compare these figures with the size of the firm, the
assets employed by the firm or its level of sales. There are four important
profitability ratios that i am going to analyze:
Net profit margin:
Net profit margin = net profit / sales x 100
Net profit margin gives us the net profit that the business is earning
per dollar of sales
This margin indicates the profit after all the costs have been incurred
it shows that what % of turnover is represented by the net profit. An increase
in the ratios indicates that a firm is producing higher net profit of sales
than before.
Maiwand
bank
|
Year
|
2012
|
2013
|
|
Net profit
|
208832
|
220911
|
|
Sales
|
322132
|
483025
|
|
Net profit margin
|
65%
|
46%
|
Interpretation
Maiwand
bank
Therefore, the net profit margin was 65 % in 2012,
increase to 46% in 2013
Chapter 6
CRITICAL
ANALYSIS & SWOT ANALYSIS
6.1
Critical analysis
During
internship it was my prime objective to furnish my knowledge (theory) to
various practical situations. The practical work presents an analytical problem
while relating theory with practice. As a result, analysis of practical versus
theory requires a distinct approach. This part of report is the essence of the
internship, as this will help to better understand the working environment of
the bank by finding the relationship between what is written in the books and
what is actually going on in fields. The theory written in the books in cases
is not implemented as it is. In some cases theory is implemented with a little
modification but in other cases theory has nothing to do with practice. In
accounting, banks don’t prepare worksheet, but part of worksheet is prepared
like trial balance. The securities for the loans are handled in the same way as
theory says like mortgage, pledge, hypothecation, advances against insurance
policies or liquidation procedure is the same. There is some difference lies in
type of loans in bank that is theory talks about four or five type of loans
that is cash finance, overdraft, loan etc. but in practice there are some more
types used by bank like running finance, demand finance etc. all other concepts
of remittances, bills foreign exchange deposits, letters of credit are in
accordance with theory almost. A bank’s balance sheet is different from that of
a typical company. You won’t find inventory, accounts receivable, or account
payable, instead under assets, you’ll see mostly loans and investments, and on
the liabilities side, you’ll see deposits and borrowings.
6.2
SWOT Analysis
Swot
analysis is a process to identify where we are strong and where we are
vulnerable, where we should define and where we should attack. It tells us our
strengths, our weaknesses, the opportunities which prevail in the market and
the threats which we may face from our competitors and other from other
potential factors.
SWOT
analysis is an acronym that stands for Strength, Weaknesses, Opportunities, and
Treats SWOT analysis is careful evaluation of an organization’s internal
strength and weaknesses as well as environmental opportunities and treats.
6.2.1 Strength
- Maiwand bank is one of the leading banks in the banking sector of Afghanistan, its growing day by day and public love to open an account in Maiwand bank.
- Maiwand Bank Jalalabad branch is located in the main place of Jalalabad city which is near to money exchange market
- The employees at Maiwand Bank are offered reasonable monetary benefits.
Normally
two bonuses are given Eid-ul-Fiter&Eid-ul-Azha.
This
serves as an additional benefit and competency for bank and source of
motivation for the employees.
- Maiwand Bank has online banking system which can not only increase the business of the branch but also enhanced the importance of the branch, rather strategic step.
- The bank has another competency, i.e. it has board bass’s network of branches throughout the country.
It
also has more than one branch in high productive cities. This ensures that
provided services at their nearest possible place to confirm customer satisfied.
6.2.2
Weaknesses
- Being a huge and large network of branches the IT base of the bank overall is weak. It would take time to online the bank fully each and every branch.
- There is immense pressure on the branch for ATM installation as during the peak time.
- j affecting the bank in negative way, they sometime have to provide loan under the pressure, which leads to uneven and adjusted feeling in the bank employees.
- The promotion and bonuses etc. in the bank are often powered by senor’s favoritism or depends upon their wills and decision.
- The overall staff of the branch is very supportive but due to overload sometimes it becomes a headache for walking customer to get proper attention. So there is drastic need for one customer facilitation seat at the branch to facilitate the customer at the branch during the peak (salary and pension) days.
- The top management of the bank is taking keen interest in the training of its workforce however there is dire need of training the cash officers of the branch specially and generally for the bank.
- As there is huge load on the cash staff they need proper training in the area of time management and stress management.
- The workload in Maiwand Bank is not evenly distributed and workload trends to be more on employees while others abscond away from their responsibilities, which server as demonization factor for employees performing above average work.
- There is a communication gap between different levels of management.
6.2.3
Opportunities
- The word today has become a global village because of advancement in the technologies, especially in communication sector.
- More emphasis is now given to avail the modern technologies to better the performance.
- Maiwand Bank has utilized the electronic banking opportunity to ensure on line banking 24 hours a day, this would give a competitive edge over others.
- New products and services can be added to its product line.
- Because of the need for micro financing in the market, there are lots of opportunities in this regard.
- Other banks have already initiated, now the time has arrived when Maiwand Bank must realize it and take on step to cater an ongoing demand.
- New and attractive schemes should be introduced for overseas Afghani, so that they should save their money in Afghani banks.
6.2.4 Threats
- The bank is facing threats with emergence of new competitors especially in terms of foreign bank.
- These foreign banks are equipped with heavy financial power with excellent and innovative ways of promoting and performing their services.
- The bank has to take initiative in this regard or will find itself far back in competition.
- Demand of ATM machines is increasing day by day. All commercial banks surrounding the vicinity are providing ATM facility to its customers Maiwand Bank Jalalabad though recently on lined is lacking behind in this area.
- The bank is currently acting upon the policy of downsizing which threaten the environment of the bank. The employees feel insecure in doing their jobs and work. Hence affecting the overall performance of employees negatively.
- There exists no regular and specific system of the removal of customer complaints. The branch is facing a high number of customer complaints.
CHAPTER
7
CONCLUSION
AND RECOMMENDATION
7.1 CONCLUSION
Criticism
with positive approach is an important initiator that gives birth to recommendation.
In this section some findings and recommendation are given to Maiwand bank
improvement of Bank.
In the history of
banking, the origins of the first sector goes back to the goldsmiths and their
receipts confirming the deposit of gold by a client and its availability to the
bearer, and the second sector goes back to the moneylender who lent his own
money on interest. Later on these two were combined to form the progenitors of
the modern bank.
The activity in the first sector provides the
modern bank with the ability to create bank credit second the bulk of the
monetary basis for this creation (using depositors’ money). And the
Thus
this combination enables the modern bank to lend huge sums of money.
In turn, this
enables the debt-based financing of enterprises, large and small.
This contributes
to greatly accelerate economic activity, using a relatively small monetary
base; but it also has its negative side. Business cycles are traced back to
speculation and excessive bank credit. Beyond a certain limit, unstable banks,
bank failures, and the consequent economic chaos are the results.
Institution
that delivers elegant services by nourishing supreme, competitive and favorable
environment. Overall experiences there were very good. Branch management pays
keen attention and concern for all employees. The employees are motivated,
energetic, well groomed and trained in order to serve the customers in most
effective manner. Special individualized attention is paid t every customer and
is also given guidance in important consultancy. However due to growing number
of customers and over whelming work, its becomes very difficult for managers to
properly gaud interns. And internees have to put maximum effort and patience to
get guidance to get guidance and knowledge. All the department have their own
importance is bank s. And so internees are sometimes rotated in all departments
but this gives them negligible times to get adequate grip and knowledge in any
particular department. Before me few inertness were given full rotation in bank
but at my time and after that, internees were confined to few department only.
I started my internship at general credit department, then proceeded to account
department, then to leasing department, then to agri credit department and
finally again back to general credit departme3nt where my tenure of internship
ended.
7.2 RECOMMENDATIONS
Recommendations
are considered to be the most important part of an internship report, without
which no report is considered complete and meaningful. This Part of the report
is bases on the previous sections I.e. Review and analysis. Moreover, for
bringing suggestions, discussions have been conducted with the staff of Maiwand
bank officers, who not only provided the basis for recommendations but also pointed, out some
areas, where the change for the development
is utmost important. Realizing the importance of this section, efforts
have been made to give feasible recommendations, which are categorized under
the following headings.
Maiwand
bank should develop a modern connectivity architecture to effectively maintain
an online connection of the branch with other branches and also the ATM link,
which may include using modern technologies like fiber cable, routers etc. Also
backup links should also be developed; also a proper IT department should be
established in all branches, with professional having the knowledge to maintain
a secured connection with other banks. Also scheduled backups of data should be
done within the bank.
Work
shop programs should be conducted in every city, rather than just two centers,
for all Maiwand bank employees. These Workshops should relate to all aspects of
banking an may also be conducted with other banks as an joint program. Also as parts
of the human resource training, counseling programs should be stated for junior
executives or new entrants into the banks, introducing them to their prospects
in this industry. The lower staff employed at Maiwand bank should also be given
a chance to succeed inline by training them in different simple jobs at the
bank, which may include sorting of cheese, phone banking etc.
- Incentive schemes should be developed for the employees that can help motivate them,which might include:
- Personal loans and car financing facilities for all ranks of employees
- Scholarship program for all employees.
Introducing
employees awards at branch and regional levels
Job
rotation programs to enhance the skills of employees
New
and innovative product should be introduced by Maiwand bank, like other bank
such as Kabul bank and Azizi Bank develops for their customer. For this
purpose, special teams should be developed that include professional from all
department s of the banks to come with ideas. This process will increase the number
of ideas generated and produce innovation products for the bank that might give
them the edge.
There are some departments in the banks that do not
have enough employees, while some have more than needed. All this creates
inefficiencies and so the operations manager should look at the department of
the branch and see where inefficiencies lie. In consultation of with the heads
of the departments and hire individuals where there are less employees or
rotate employees from other department.
There
should be a prayer room developed in all branches as many employees want to
pray, but do not have the proper place to do it. Also work like sorting, which
takes up a lot of apace should be done in a separate place and amenities like
television and internet connection should be placed in the common room, so as
to give employees a relaxing environment when they have a break today is the
era of electronic media and advertising play a major role in the success and
worth building of any organizations. Maiwand bank's management should pay some
attention at this side as well
Recommendations
necessary for the success of Islamic banking are as follows
·
Islamic banks can expand its operation by implementing
Shariah law this would not be achieved without hiring professionals with the
skill and experience in financial consultancy and preparation of feasibility
studies for projects.
·
Public faith can
be constructed by communicating the Shariah law by indicating the allocation of
the bank’s current investments, the plans for future investments and
information about the management of such investments.
·
Technology is
vital tool to assist communications, transactions and interactions and to
survive in the highly competitive environment of the banking industry in world.
·
Islamic banks must
be clearly defined about their practices, strategies, objectives, missions and
visions, and convey them to the public.
Finally,
it is recommended that use of Islamic finance principles for public sector
financing needs more attention, as regulators need to provide and enabling
environment and ensure that proper procedures for good corporate governance,
transparency and ensuring Shariah compliance are in place it could be helpful in ensuring fiscal
discipline and thus giving a just basis for monetary management
·
Maiwand Bank should introduce more schemes like bakht
account. Which help the bank to
attract more deposits in short terms.
·
Jalalabad is popular place for tourists, most of the
tourists used ATM cards, so this facility should in the branch in order to
attract the local as well as foreign customer.
·
The customer should be able to request for issuance of
check books from their mobile phones through Maiwand Bank mobile banking.
·
It is recommended that employees should be trained to
be polite and maintain silence as much as possible and do not do not discuss
politics or personal problems with each other during working hours.
·
The bank should ensure the quality of staff. Capable
persons should be placed for every position rather than fulfilling it.
·
Physical verification of the property offered as a security is must
rather to rely on the documents. Investigation should also be conducted if the
property is of ancestral nature or joint property.
·
The competent consultants should do valuation of the property and mere
completion of formatives should not be taken into account.
·
Maintain in safe custody all collateral i.e. shares, govt. securities,
property title deeds, mortgage documents etc.
·
Bank must ensure receipt of periodical statements of stock and receivables
from customers, as per frequency specified in the credit approval.
·
Bank should also do the periodic physical checking and evaluation of
pledged inventories as per terms of the approvals, i.e. using applicable
margins, such that the drawing power adequately covers out standings amount at
all times.
·
Bank officials must ensure that the goods hypothecated or pledged are
covered through a valid insurance policy with appropriate risk coverage,
adequately covering the bank’s amount.
·
Concerned bank staff should ensure compliance with the institutional
credit policies and procedures as laid down in the policy book or credit manual
and advised from time to time by the credit committee or top management.
·
Ensure compliance with local regulatory requirements.
·
Confirm timely submission of correct information in the prescribed
format as may be required by the central bank.
·
REFERENCE AND
RESOURCES
I have
collected the whole information in the Internship report from the below links
and Text books.
Printed magazine of maiwand bank and others Banks
Published videos
Annually report of maiwand bank
Commercial bank websites
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