Internship Report on Credit Management of Prime Bank Ltd. Islamic Banking

Banking is topic, practice, business or profession almost as old as the very existence of man, but literarily it can be rooted deep back the days of the Renaissance (by the Florentine Bankers). It has sprouted from the very primitive Stone-age banking, through the Victorian-age to the technology-driven Google-age banking, encompassing automatic teller machines (ATMs), credit and debit cards, correspondent and internet banking. Islamic Banking is a new phenomenon in Bangladesh and getting attention of the people of Bangladesh. But the investment (credit) management of Islamic banking has been a vicinity of concern not only to bankers but to all in the business world because the risks of a trading partner not fulfilling his obligations in full on due date can seriously jeopardize the affairs of the other partner. Investors and entrepreneurs who are very religious minded and do not want to mix their investment with interest baring loans found an alternative source in Islamic system.
 The axle of this study is to have a clearer picture of how Prime Bank Ltd. manages its Investment. In this light, the study in its first chapter gives a background to the study, its objectives, scope, methodology, limitations, and the literature review on Islamic Banking and investment management. The second chapter includes the theoretical review on Islamic investment, interest (Riba) and profit.  A brief overview of PBL is given in the third chapter. PBL is the leader in its industry. PBL is in the top of CAMEL rating of Bangladesh Bank along with Mutual Trust Bank Ltd. The fourth chapter elaborates the investment pattern of PBL. PBL has a variety of product offering to its customers. But the Islamic branch offer a few of these products and the products of Islamic banking branch is also differs from the general branches. The main products of PBL IBB Amberkhana branch offers includes Bai-Murabaha (CCS), Bai-Muajjal (Corporate), and Quard.  The chapter five is the data analysis and findings chapter which measures and explains different terms of the investment of PBL.  This leads to conclude in the last section that includes some recommendations about the problems found in data analysis and the concluding remarks. Islami Banking has both strengths and weaknesses. The major strength of PBL is religious feelings of people and major weakness is absence of Islamic money market.