Internship report on “Investment Operations of Shahjalal Islami Bank Limited”

Abstract

Shahjalal Islami Bank Limited (SJIBL) is a private commercial bank doing business in Bangladesh. Due to their critical role in the economy, banks are the most significant entity in the financial sector. Mainly, the banking industry keeps the flow of money from depositors to investors going. The purpose of my study is to learn more about how Shahjalal Islami Bank Limited (SJIBL) operates its investments and to compare and analyze the investment operations of Shahjalal Islami Bank Limited (SJIBL) with Social Islami Bank Limited (SIBL). This report will provide a thorough understanding of the performance, operational plans, management, and oversight of the investment department. Gathering data from the published annual report, the report mainly focused on the year wise total investment, investment growth rate, investment to deposit ratio, non performing investment ratio, ROE, ROA and Income from Investment in shares & Securities of both the bank and tried to figure out the significant differences between the banks operation. All the investment related ratios are performed and displayed with the graph for better reflection of the performance or condition of the investment scenario of both the banks. In chapter one, I have explained the overview of my internship period. In chapter two, there is an overview of banking sector of Shahjalal Islami Bank Limited. In chapter three, the details analysis of investment operations of SJIBL and SIBL are given. In this chapter the full analysis & evaluation of tables and graphs are given. And finally chapter four is the findings of my analysis which portrays year wise investment growth rate of SJIBL has been decreased from 2018 to 2020. Some factors, including as the COVID-19 pandemic and the Russia-Ukraine conflict, were anticipated to have an adverse effect on the rate of investment growth but with the excellency in operating performance the bank was able to increase its investment growth rate. Due to the tightened lending standards and faster recovery process SJIBL is maintaining a good level of NPI ratio even significantly below than the industry average. Despite the negative factors SJIBL were able to maintain a growth overall investment. They focus more on quality investment which enables them to experience a high profitability. As the banking industry becomes more competitive, the bank should consider launching new services and implementing various marketing strategies.