ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD ACKNOWLEDGEMENTS

All praises and thanks are for ALMIGHTY ALLAH who is entire source of all knowledge and wisdom to mankind. Special praises for the HOLY PROPHET MUHAMMAD (P.B.U.H) who forever is touch of knowledge and goodness for humanity as a whole on the successful completion of the project. I would like to acknowledge my deep sense of gratitude and indebtedness to academic assistance of my best teacher Mr. Mujeeb Alam, without his continued guidance and timely advice the completion of this report would have been difficult. He has been a source of continuous encouragement throughout the execution of my internship period. Words cannot say the gratitude that we feel for our parents, friends and the members of my family whose affection and prayers have always been the key to my success. . Thanks to all who helped me in completing my project. I
INTRODUCTION History of Bank Before talking about the history of bank. I want to explain the origin of the word bank. The word bank has originated from an Italian word Banco which means bench. In olden times, the Italians used, to sit on special benches to conduct their business of money. Afterwards, this word passed through different stages and ultimately became popular as Bank. If these businessmen failed in their business, people used to break their benches and called them bankrupt. A bank can be defined as an institution, which deals with the business of money. It deposits the saved money of the people and then provides loan to the needy people from this deposited amount, which use this borrowed amount for their productive and non-productive purposes. The bank deposits money at lower interest rate and lends money at higher interest rates, to earn profit. The origin of banking is a very interesting story. In olden days, it was felt very dangerous to keep the saved money in the house, because of the fear of the theft. That is why, the people either preferred to spend this saved money or buried it underground, which sometimes decayed and became useless. Similarly, goldsmith, dealing with the business of gold and silver had to face the danger of theft. To solve this problem they started using iron almirahs to store their gold and silver. Afterwards they provided the facility of storing the saved money of the people, in their iron almiras, also. In Return these goldsmiths took some charges from the people for providing them this storage facility.

When goldsmiths realized that people did not withdraw all their money at the same time, they started lending it to the needy people on interest basis. At the time of depositing the silver or gold, the goldsmiths issued a receipt to the depositor and it was accepted as a means of exchange in the day to day business of the people. Today, the notes, drafts, and cheques are the developed forms of this receipt. As the time passed, the goldsmiths opened the institutions for depositing and lending the gold and silver in the people. The commercial banks are the developed forms of those institutions. As the receipts issued by these institutions, were accepted by the people without any hesitation, these institutions were initiated to issue greater number of receipts as compared to actually deposited money. The government realized that the issuance of greater number of receipts was destroying the countrys economy. In order to improve this situation, the government took back the authority of issuing these receipts from all those institutions and delegated it to one institution. Later this central institution was given the name of central bank. This is how the banking system started and with the passage of time, it developed and reached to the present stage. EXECUTIVE SUMMARY As per the requirements for the degree of MBA at AIOU, I got an opportunity to get eight weeks internship exposure. Dubai Islamic Bank, F-10 Markaz, Islamabad provides me the chance to have this experience with a prestigious institution. During my internship I was rotated in the various departments in order to get in depth idea of how the bank functions. This report thoroughly outlines and explains my observations, findings and analysis and my knowledge of the banking sector in general and Dubai Islamic Bank in particular. In this report, there is an introduction of Dubai Islamic Bank. In introduction, there is history of Dubai Islamic Bank, strong commitment and loyal service, highly trained professionals, and credit rating. The report also includes the details of the products offered by DIBPL which includes Takaful plan and other Islamic Compliance products. This report also focuses the general banking of DIBPL which includes Cash department, Remittances section, Account opening, Debt cards etc. Subsequent to it this report contains my experience and learning that what I have learned from this internship and what was my experience regarding this internship. The report also contains my analysis that I scrutinize in the organization by using two method SWOT and Financial analysis. With the help of these methods I have some suggestions and recommendations to improve the performance of the Bank, which also mentioned in this report. By following these suggestions bank can improve their product market and can easily gain the attraction and satisfaction of customers. Not only the customers, bank also can improve the satisfaction and performance level of its employees by these suggestions. 2. OBJECTIVES OF STUDYING THE ORGANIZATION Overview After the completion of degree MBA (Banking & Finance) I want to enter and check the practical work according to my specialization. For that purpose I selected the banking sector because I have done specialization in banking and finance. Second and next main objective of studying organization; I want to enter in practical field and want to learn that which discipline is required for leading a successful future life. I think I am very lucky person that I selected Dubai Islamic Bank as my learning organization. Objectives that I want to achieve Objectives that I want to achieve by studying the organization are as follows:

First of all I want to check the practical work according to my degree specialization. During my internship in Dubai Islamic Bank I have learnt that how to use the knowledge in practical field. Secondly I want to learn that how to mange an organization and how to mange the finance for a financial organization, as my degree is related to Financial Management and Banking and Finance. Customers dealing is another major objective that I want to achieve. During my internship I learnt that how to deal with customer. Financial institution is a place where every type of businessmen visits, so during my internship in DIBPL I met with many businessmen and learnt that how different businesses run. And another main objective that I want to achieve that how an organization consist with different departments and how different functions are done in different departments of an organization. Through this internship I learned many things. It was a great experience for me to comprehend the working environment. During this period I face different types of working conditions, which will help me to know that, how to handle these conditions in future. Through this internship I am able to do work in all departments of Bank because I know all rules, policies, and responsibilities, which mentioned in DIBPL departments and products of these departments so I achieved 80% of my objective 3. OVERVIEW OF THE ORGANIZATION Dubai Islamic Bank is the leading Islamic bank operating in Pakistan. Its balance sheet size is improving with the passage of time. It has redefined its role and has moved from a public sector organization into a modern Islamic bank. The Bank's services are available to individuals, corporate entities. While it continues to act as investor of public funds and it has diversified its business portfolio and is today a lead player in the debt equity market, corporate investment banking, retail and consumer banking, treasury services and is showing growing interest in promoting and developing the country's small and medium enterprises and at the same time fulfilling its social responsibilities, as a corporate citizen. In today's competitive business environment, DIBPL need to redefine its role and shed the public sector bank image, for a modern Islamic bank. It is listed in Securities and Exchange Commission of Pakistan in 2006. Dubai Islamic Bank is today a progressive, efficient, and customer focused institution. It has developed a wide range of consumer products, to enhance business and cater to the different segments of society. Some schemes have been specifically designed for the low to middle income segments of the population. It has taken various measures to facilitate overseas Pakistanis to send their remittances in a convenient and efficient manner. More recently it has started Electronic Home Remittances Project. This project introduces technology based system to handle inward remittances efficiently, by ensuring that the Bank's branches keep a track of the remittance received from abroad till its final receipt. A number of initiatives have been taken, in terms of institutional restructuring, changes in the field structure, in policies and procedures, in internal control systems with special emphasis on corporate governance, adoption of Capital Adequacy Standards under Basel II framework, in the up gradation of the IT infrastructure and developing the human resource. Dubai Islamic Bank has built an extensive branch network with 36 branches in Pakistan. The Bank's financial performance has been remarkable. In 2006, total assets are estimated at Rs 8434280000, while deposits have grown to nearly Rs 4322621000. The increase in profit was achieved through strong growth in core banking income. The Bank maintains a sound loan portfolio diversified in nature to counter the risk of credit concentration

.1 HISTORY OF DUBAI ISLAMIC BANK PAKISTAN LTD.

Thirty years ago Dubai Islamic Bank created history by becoming Worlds first Islamic Bank. Today Islamic Banking has become one of the fastest growing economic sectors with over 300 financial institutions; with assets estimated over at 300 billion US Dollar providing Islamic Financial Services. Despite huge growth to the sector DIB is continued to be the pioneer and leader to date. Since its inception DIB has evolved retail bank to a fully fledged bank catering to almost all the requirements of the customers in providing to Sharia Compliant solutions locally and internationally. It has constantly upgraded its services to individuals and companies who always remain a valuable asset. By combining the best Islamic traditional values with high standards technology and innovation, DIB is committed to comply with not only fully transactions of financial dealings. DIB is also committed to provide customer-satisfaction oriented job. For its outstanding performance and contribution for Islamic financing, DIB received the best Islamic Bank award in the Middle East Award 2006; by both Euro moneys Islamic Finance Weekly and Gulf Wealth Forum. DIB has also awarded the bank of the year 2006 Banker Awards. DIBPL has started its operations since 2005. At that time the scale of business and number of branches were very short. But just within the time period of five years, now DIB has an extensive network of branches, a wide range of Islamic Compliant Products, well-managed communication system and good return from operations.

3.2 Nature of the organization Dubai Islamic Bank Pakistan Ltd. is a public Organization. It implements the policies of SBP. Its basic objective is to maximize the profit. It has major impacts on Pakistan economy with special emphasis on fostering Pakistan's economic growth through aggressive and balanced lending policies, technologically oriented products and services offered through its network of branches. It deals with Revenue, collection and payments of salaries. It is a complete Islamic, retail and corporate bank as well. The Dubai Islamic Bank is an Islamic institute which offers a variety of products according to the Sharia principles and instructions. All the products and services are regulated by Sharia Board. If they find someone violating the rules, they penalize. The Dubai Islamic Bank makes different adjustments to update business operations. The Bank has also played an important role in financing the countrys growing trade, which has expanded through the years as diversification took place. Dubai Islamic Bank Pakistan Ltd. maintains its position as Pakistan's one of the premier bank determined to set higher standards.