Contents Abstract .......................................................................................................................................................................

Acknowledgement .......................................................................................................................................................

Executive Summary ....................................................................................................................................................

Chapter # 1: Introduction to study: ..........................................................................................................................

1.1 Back ground of studies ..................................................................................................................................

1.2 Purpose of the studies ...................................................................................................................................

1.3 Research Methodology ..................................................................................................................................

1.4 Scope of studies ..............................................................................................................................................

1.5 Merits of the study .........................................................................................................................................

1.6 Limitation of the study ..................................................................................................................................

Chapter 2: Introduction to Banking & Burj Bank LTD: .......................................................................................

2.1 Introduction ....................................................................................................................................................

2.2 Banks in Pakistan ...........................................................................................................................................

2.3 Introduction to the Burj Bank LTD .............................................................................................................

2.4 Vision: ...............................................................................................................................................................

2.5 Mission .............................................................................................................................................................

2.6 Structure of Burj Bank LTD: Board of Directors ......................................................................................

2.7 Sharia'h Supervisory Board: ........................................................................................................................

Chapter #3 ...................................................................................................................................................................

PRODUCT, SERVICES & DEPARTMENT ...........................................................................................................

3.1 Introduction ....................................................................................................................................................

Figure 3.1 BURJ BANK Ltd branch organizational Structure: ......................................................................

3.2 DEPARTMENTS: ..............................................................................................................................................

Chapter 4: Analysis.......................................................................................................................................................

4.1 SWOT Analysis ....................................................................................................................................................

4.2 CONCLUSION ......................................................................................................................................................

4.3 RECOMMENDATION ..........................................................................................................................................

References ................................................................................................................................................................

Abstract

Internship training for the students of Business Administration is a complimentary portion of the educatio put at various organizations of their respective specialization; to see and apply their theoretical knowledg studied during their academic program at the institute.

Burj Bank Limited, formerly known as Dawood Islamic Bank Limited (DIBL) is one of those organi student can achieve his/her academic and professional knowledge productively.

I was put in the Burj Bank Multan Branch to complete financial system was studied i.e. cash balances, ad ,turnover, chronological development and growth ,its relative study and financial ratios were thoroug

As Burj Bank LTD is newly opened Islamic bank in the market where it is facing a tough compe public sector and private banks therefore financial SWOT analysis was also made however focus of the the analysis of financial ratios.

Acknowledgement
First of all I am very y thankful to my Almighty Allah who gave me courage and patience to complete this task.I would like to express my profound gratitude, most sincere appreciation and special thanks to my supervisor for his fabulous suggestion, valuable advice and continuous encouragement through the completion of report. I highly appreciate the help and cooperation of the Mr. Naeem Akhter Manager of Burj Bank LTD Jhelum Branch. I am also thankful to the Staff members of Burj Bank LTD, Jhelum Branch for their continuous help and guidance during my internship with them. I must thank to all my friends and teachers who did extend their valuable support and priceless suggestions during working on report. Finally I wish my deepest appreciation to my respectable parents and family members who are the strength of my life, who have motivated me in all phases of life, for their long loving support, their patience, their understanding and their prayers.

Executive Summary
Banking has always been the main field of interest for most of the students of business administration. It is also an academic requirement to undergo internship therefore the main purpose behind this report is partial fulfillment of requirements, for the degree of MBA. The objective is that report encompasses the experience of mine, learning, and analysis. In light of which recommendations are made. In the first chapter introduction to the report, background of study, scope of the study and merits of the study are given. The second chapter is about introduction to the organization, its historical background, how it came into being, what the major reasons behind it were and what areas of banking it covers. Corporate profile of the bank consisting of Board of Directors, audit committee legal advisors. The organizational structure of Burj Bank LTD, its core values, financial highlights all are provided: What procedures are used to receipt and pay the cash, what kinds of cheques are used by the customers to draw money? Then in advances department the types of advances given to different types of customer are discussed. And then finally the clearing procedure is discussed in this chapter. For the management to know the financial condition, strengths and weaknesses so that it can take appropriate corrective actions. The management should know the weak areas and should develop elaborate plans for capitalizing on the available opportunities.

Chapter # 1: Introduction to study:

1.1 Back ground of studies

As part of the course out line of MBA (Master Business Administration) of the students are required to undergo 6 weeks of internship with an organization. The internship is to serve the purpose of acquainting the students with the practice of knowledge of the discipline of business administration. This report is about Burj Bank. Burj Bank was established in 2006 and since then, it has expended its network, becoming the Islamic Bank of the country. It offers different products of services to its customers.

1.2 Purpose of the studies

The main of the study in hand is together relevant information to compile internship report on Burj Bank LTD 1. To observe, analyze and interpret the relevant data competently and in a useful manner. 2. To work practically in an organization. 3. To develop interpersonal communication. 4. This report is an essential and academic requirement for the fulfillment of the degree. 5. To what extent the practical things differ from the theory. 6. To analyze the activities preformed by the bank during the internship,

1.3 Research Methodology

The report is based on my two months internship program in Burj Bank, Jhelum branch. The methodology reported for collection of data is primary as well as secondary data. The biggest source of information is my personal observation while working with staff. 1.3.1 Primary data: Personal observation Interviews of staff Staff at night position in bank Staff at circle office. 1.3.2 Secondary data: Manuals Journals Magazine Annual reports

1.4 Scope of studies

As an internee in Burj bank the main focus of my study research was on general banking procedures in one of the branches of Burj Bank. These operations include remittances, deposits, and to small extent foreign exchange and advances. Similarly different aspects of overall of Burj Bank are also covered in this report.

1.5 Merits of the study

This report proves beneficial to all the finance students because it almost contain all the information about the finance department of Burj Bank LTD. So one can easily understand to what extent the theory is different from practical implications.

1.6 Limitation of the study

The report does not contain all the facts and figures about the area under study due to certain limitations. Most of the data related to financial practices is confidential. And thats why access To that information was a difficult task. Another factor is the time limitations. As the internship is of 6 weeks thats why so much time to study all aspects and details havent. Despite of these the report encompasses all the information required.

Chapter 2: Introduction to Banking & Burj Bank LTD:

2.1 Introduction
Banks play very important role in the economic life e of the nation. The growth of the economy is closely related to the soundness of its banking system. Although banks create no new wealth but they borrow, exchange and consume wealth. In this way, they become very effective partners in the process of economic development. Modern banks are very useful for the utilization of the resources of the country. The basic role of the banks is to encourage the habit of savings among the people and to mobilize these savings for the investment purpose. Banks deposit surplus from the public and then advance these surplus in the form of loans to the industrialists, agriculturists, businessmen and unemployed people under different schemes so that they set up their own business. Thus banks help in capital formation. If there are no banks, then there would be concentration of wealth in few hands and the great portion of capital of the country would remain idle. In the fewer developing countries rate of saving is very y low and due to this, rate of investment and rate of economic growth remains very much low. We can take bank just like a heart in the economic structure and the capital provided By it is like blood in it. As long as the blood is in circulation, the organs will remain sound and healthy. If the blood were not provided to any organ then that organ would become useless. So if the finance is not provided to agriculture sector or to industrial sector, it will be destroyed. Loan facility provided by the bank works as an incentive to the producer to increase production. Banks provide transfer of payment facility, which is cheaper, quicker, and safe. Many difficulties in the international payment have been overcome and volume of transactions has been increased. These facilities are very much helpful for the development of trade and commerce. 2.1.1 Banking Industry in Pakistan Banking is one of the fastest growing industries but it is one of the most sensitive businesses all over the world. Banks play very important role in the economy of a country and Pakistan is no exemption. Banks are custodian to the assets of the general al masses. In our lifetime, we use plenty of banking products that were previously not available to the ordinary person. Most of us have Credit cards, loans, and we have the insurances. This has banking a much more competitive Industry and we have the right to expand great services for our custom. The banking sector plays a significant role in a contemporary world of the money and economy. It influences and facilitates many different but integrated economies activities like mobilization, poverty elimination, production and distribution of public finance. If it is purchasing a car or building a home; banks are always play there are serve better. It is play ground or any educational or healthy societal activity the money of banks nurtures them. In an industrial project or agricultural development of the country the sponsor -ship of banks is very much involved. Banks play very important role in the overall economic development of the country. Pakistan Banks Association (PBA) represents the Pakistan Banking Industry. Established in 1953, its main objectives are to coordinate the efforts of the banking industry, and to share common vision of progress and development with its members. Pakistan has a well-developed banking system, which consists of a wide variety of institution ranging from central bank to commercial banks and to specialized agencies to cater for special requirement of specific sectors. The country started without any worthwhile banking network in 1947 but witnessed phenomenal growth in the first two decades. By 1970, it acquired a flourishing banking sector.

2.1.2 Growth of Pakistans Banking Industry Pakistan is a developing country and in the recent year the banking industry in Pakistan has been transformed from state owned sector to vibrant sector industry. Banking industry has not only gained strength from positive inter play of economic and political factors also become an engine of growth for economy. Growth of SMEs in Pakistan is increasing at very rapid pace. SMEs constitute 90% of business in Pakistan. SMEs represents a significant component of Pakistanis economy in term of value. Domestic banks are 7301 and Foreign Banks are 105 Banks in year 2005? Strong monitoring and credit control measures has been made by SBP. There are weak Functional strategies within and among financial institutes, like co-ordination, communication. There is a lack of system to solve the banking crises. The challenge facing the financial sector is transforming the existing interest based system into Riba free system. The Supreme Court of Pakistan has given its verdict and also set the deadline, June 30, 2001, for completing the transformation according to Islamic Conjunction (Shariah). In 2007 economic recession allover world affects all business sectors including banking sector. Therefore growth of banking sector slow due to economic recession and challenges like terrorism as compared to past years.

2.1.3 Banking Law in Pakistan All banks are following a certain law, and they are working under the Banking ordinance 1962 and controlled by State Bank of Pakistan. 2.1.4 State Bank of Pakistan (Central Bank) The guiding principal of State Bank which is the central bank of Pakistan is that, it acts only in the public interest and for welfare of the community as a whole and without regards to profits a primary consideration. As all the banks are following the defined set of rules and procedures (SOPS) standard operating procedures, same as Burj Bank LTD limited is also doing so while dealing with accounts, cash, remittance, clearing, finance, auto loans etc. as if any one doesnt follow the rules then future of the bank can be in wild darkness.

2.2 Banks in Pakistan

There are three types of banks, serving in Pakistan as; Government banks Private Banks, and Foreign banks 2.2.1 Government banks The period of 1990s took a revolution in the sectors of privatization, deregulation and restructuring in the domestic banking industry and financial institutions. The Muslims Commercial Bank was the first bank to privatize. One good thing for the particular period was the recruitment of the fresh officers in the domestic banking industry through well- organized policies of the Banking Council. Government banks include; NATI ONAL BANK OF PAKISTAN (NBP) FI RST WOMEN BANK LIMITED (FWB) THE BANK OF PUNJAB (BOP) THE BANK OF KHYBER (KM)

2.2.2 Private Banks The Government of Pakistan per mitted small private sector banks to operate, which indulged in doubtful policies to promote business. These banks include; ALLIED BANK PICIC COMMERIAL BANK LIMITED MUSLIM COMMERIAL BANK LIMITED UNITED BANK LIMITED BANK AL-FALAH LIMITED UNION BANK LIMITED ASKARI COMMERIAL BANK LIMITED MY BANK LI MITED SAUDI PAK BANK COMMERIAL LIMITED SAUDI PAK BANK COMMERIAL LIMITED BANK AL HABIB LIMITED

2.2.3 Foreign Banks Due to the policies by Pakistani Government, many foreign banks are getting influenced and started entering into the business in Pakistan, as the economic condition and SOPS by bank and Pak government is favorable for new entrants but this has reduced the profitability of the local banks. Foreign banks include; CITI BANK STARDARD CHARTED BANK ABN AMRO BANK HONG KONG SHANGHI BANKING CORPORATION (HSBC) DUBAI ISLAMIC BANK NIB BANK, etc All the foreign banks of the country are busy to invest heavily in the field technology and e- commerce in order to overcome branch limitation. All the domestic and foreign banks vigorously institutionalizes consumer financing in the country and earned handsome profits.

2.3 Introduction to the Burj Bank LTD

2.3.1 What is Burj Bank LTD? Islamic banking has been defined as banking in consonance with the ethos and value system of Islam and governed, in addition to the conventional good governance and risk management rules, by the principles laid down by Islamic Shariah. Interest free banking is a narrow concept denoting a number of banking instruments or operations, which avoid interest. 2.3.2 Competition Situation Burj Bank LTD is the Joint venture project of 6 groups with, namely Bank Alkhair, Islamic Corporation for the Development of the Private Sector (ICD), Mr. Azam Essof Kolia, AL Safat Investment Company, Gargash Enterprises (LLC), Sheikh Abdullah Mohammad Al-Romaizan. Irrespective of stiff competition in the market the Bank has successfully managed to grow over during lasts few years and all set to be Online Branches Network by the year end 2011. The same was achieved by the existing largest player in the Islamic Banking Industry Meezan Bank in 6 years time at December 2007. Burj Bank LTD has become a hallmark of innovation and bringing new products and services in the market. 2.3.4 History Burj Bank LTD Burj Bank Limited, formerly known as Dawood Islamic Bank Limited (DIBL), is Pakistan's sixth full-fledged Islamic commercial bank. The bank received its license from the State Bank of Pakistan in May 2006, and officially commenced its operations on Friday, April 27, 2007. The Bank was the result of an initiative of the First Dawood Group, with the Islamic Corporation for the Development of the Private Sector (ICD) in Jeddah, Unicorn Investment Bank in Bahrain, Al Safat Investment Company in Kuwait, Gargash Enterprises (LLC) in Dubai, the Singapore-based entrepreneur Azam Essof Kolia and Shaikh Abdullah Mohammad Al-Romaizan, an entrepreneur from the Kingdom of Saudi Arabia. In July 2011, the bank was renamed Burj Bank Ltd. Prof. Mufti Munib-Ur-Rehman is heading Shariah Departmentof the Bank as the banks Shariah advisor. It currently has 50 online branches. Burk Bank has a diversified range of Shariah Compliant funded and non-funded products and services aimed at both individual and corporate customers. The bank also offers investment and corporate advisory services.

2.4 Vision:
To be Islamic Bank of choice.

2.5 Mission
Provide Innovative and efficient Islamic banking solutions to exceed customer expectations and optimize shareholder value. Defining Values Values that define our culture, our business, our processes and who we are. Purity Purity encompasses essential business values for Islamic banking such as purity of return and truthfulness of character / actions Integrity Integrity is the essential value of banking, particularly Islamic Banking, it reflects honesty and clarity within our communication, processes and our business dealings. Progressive Values Values that will take us forward and reflect an enduring commitment to growth and progress. Passion Passion reflects a winning attitude, an obsession with our profession, delivery of highest levels of customer services and an overwhelming strive towards excellence. Devotion Devotion indicates the need for hard work, consistency, perseverance & a commitment towards the organization, its customers and all its stakeholders.

2.6 Structure of Burj Bank LTD: Board of Directors

Mr. Ahmed Khizer Khan Mr. Khalid Mohammad Al- Aboodi Mr. Basheer A. Chowdry Mr. Nicolas E. Martin Mr. Azam Essof Kolia Mr. M Jamil A. Qureshi President & CEO Chief Executive Officer Managing Director Managing Director

Mr. Adel Yousef Mr. Shehab Gargas

2.7 Sharia'h Supervisory Board:

Prof. Mufti Munib-ur-Rehman (Shariah Advisor) Mufti Syed Sabir Hussain (Shariah Coordinator - Compliance) Mufti Syed Zahid Siraj (Shariah Coordinator - Audit)

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Chapter #3 PRODUCT, SERVICES & DEPARTMENT

3.1 Introduction
Burj Bank LTD, Multan branch is on old Bahawalpur road; also Burj Bank LTD history is not too much old. Its all about to 5 to 6 year old. The organization of Burj Bank LTD Multan branch is a complete banking system but it is covering modern technologies like ATM. This banking system is collection of interrelated departments that works together to achieve the objectives of the organization. Burj Bank LTD is a hierarchical system in that it includes other sub departments and these are integrated to work together. In the internship of six weeks I have worked in different departments to see how they are functional.

Figure 3.1 BURJ BANK Ltd branch organizational Structure:

Clearing Department Remittances Department Operations Manager Account Opening Cash Department Department Bills

3.2 DEPARTMENTS:
Burj Bank LTD Jhelum branches divided into different departments.

Credit Department Operations Department Consumer Banking. a) Credit Department The main purpose of this department is to extend loans to its clients for the productive purpose. Credit Department is also called Corporate Banking Group. Bank can offer different type of financing in their branches. This type of financing are based upon Islamic mode of financing. Just like MUSKUN home financing, Islamic Auto Ijara-new vehicle and same with imported vehicles. b) Operations Department: Operations department of the Burj Bank LTD is responsible for the overall operations of the bank, Customer Services Department, Remittance Department, Clearing Department, Accounts Department, etc. all come under it. c) Consumer Banking Consumer banking is the Marketing Department of the Burj Bank LTD. At Burj Bank LTD, consumers are treated very well. They are of the opinion that customers must be satisfied with the services provided by the Bank. All of the Branches try to make sure that customers are satisfied with the services being provided by the Bank. 3.2.1 Operations Department: Burj Bank LTD accounts are same as other commercial banks accounts but in some accounts they can offer Islamic mode transactions. Accounts are given below.

3.2.1.1 Nature of the deposits Bank deposits can be broadly classified as Burj Business Account Burj Smart Saving Burj Monthly Income Account Burj Term Deposit Certificates Burj PLS Saving Account Burj Current Account

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a) Burj Business Account Open Burj Business Account to meet the requirements of your fast growing business. Burj Business Account is especially designed to meet the requirements of the businessmen in a Shari'ah compliant manner. With Burj Business Account enjoy free of cost banking services and liberty to make unlimited transactions whenever required Following complimentary services are offered: Pay Order / Demand Draft Cheque Book ATM Card Bank Statement Intercity Clearing Online banking b) Burj Smart Saving Burj Smart Saving is a unique Shariah compliant savings account that gives you Halal profit on your savings while offering you the liberty to make unlimited transactions, anywhere anytime. So its about time to opt for the best and the most convenient account because only Shariah leads to prosperity. Features & Benefits Attractive profit rates. (tier based) Profit calculated on daily basis with monthly payout. Unlimited number of transactions free of charge. Additionally, you enjoy the following free services:

ATM Card Cheque Book*

c) Burj Monthly Income Account Why invest your money elsewhere when Burj Bank is offering the most attractive profit rates for those who are interested in saving their hard earned money and reap handsome income every month in a Halal manner. Features & Benefits Most attractive profit rates Minimum investment amount as low as PKR 25,000/ Investment term ranging from 3 Months / 6 Months/ 9 Months/ 1 Year / 3 Years / 5 Years Profit paid out monthly Pre-mature withdrawal facility available * You can also avail our online banking and SMS alert facilities available in all branches nationwide. *terms & conditions apply d) Burj Term Deposit Certificates Why invest your money elsewhere when Burj Bank is offering the most attractive profit rates for those who are interested in saving their hard earned money for a longer period of time and reap handsome income every month, in a Halal manner. Features & Benefits Minimal initial investment amount. Flexible tenures ranging from 7 days / 1 month / 3 month / 6 month / I year / 3 years and5 years Profit paid out monthly / quarterly / semi annually or at maturity Attractive profit rates Pre-mature withdrawal facility available e) Burj PLS Saving Account Burj Bank is offering attractive profit rates in its Savings products based on deposit tiers and at the same time allowing customer to make transactions on his account without any limits. Features & Benefits Attractive tiered profit rates. Profit calculated on daily basis with monthly and half yearly payout. Unlimited number of transactions free of charge. Free online banking. Unmatched services available at Burj Bank branches present nationwide. f) Burj Current Account Current Account provides safety to your hard earned money with liberty to make unlimited withdrawals through cheque or ATM card and enjoy suite of value added services facilitating yourself in managing your account. Current Account is based on the Islamic principle of Qard,whereby bank is liable to pay back your money on demand and invest it in purely Shariah compliant avenues. Current Account Features & Benefits No minimal balance requirement Account can be opened in PKR,US$,GBP and EUR. No restriction on number of transactions and withdrawals.
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Availability of free of charge ATM Card/Debit Card. Free of charge access to Burj online banking. Free internet banking service including free funds transfer within Burj Bank branches.

3.2.1 Kinds of Products: Accounts can be classified in the following types Individual accounts Joint accounts Partnership accounts Minor accounts

A) Individual Accounts Individual accounts are the account, which is opened and operated by a single person. Before opening the account bank sees proper identity and introduction of the individual. Individuals instructions are strictly observed in operation of the account. B) Joint Account Two or more persons who are neither partner s nor trustees can open this type of account. At the time of opening account specials instructions are taken by the account holders that who is going to operate the account they are asked whether it will be operated singly or jointly and to whom the balance will be transferred at the death of an account holder on the basis of either or survival.If the joint account holder wishes to delegate their authority to operate on the account to an outside party all the joint parties should sign this authority. C) Partnership Account Partnership accounts are opened in the name of the business e.g. M/S ABC Electronics etc. for opening of this account a partnership deed NIC required. Bank staff acquires special instructions by all partners for the operation of the account. Partnership account can only be opened in the form of a current account D) Minor Account The contract act 1872 has disqualified a minor from entering into a contract except the one for his necessities. According to Pakistan Law a person is regarded as a minor until he has attained The age of 18 years. However under section 3 of majority act 1875 if a competent court of law appoints a guardian of his person or property before his 18 years the majority extends to the age of 21 years. Bankers in Pakistan have allowed the opening of minors account only with the idea Of inculcating in them the habit of saving. So guardian requests in the name of the minor for opening of an account. There are other accounts, which are called specialized accounts. These are given below. F) Joint stock account Accounts of clubs, societies and associations Agent accounts Executors and administrators accounts Pak rupee non-resident account

3.2.2 Procedures for account opening In order to operate an account with the bank, a customer has to open an account. In large branches Grade 1, II or III officers is made responsible for opening new accounts. However in small branches, the manager himself fulfills all the formalities for opening new accounts. It is necessary because in case of fraud unintended over draft, or negligence, the bank will have a source to trace out the customer. Such source is established by asking the customer to bring an existing customer of the bank that will introduce him to the bank. In order to protect against losses resulting from fraud or unintended overdraft the account opening activity has been formalized through certain steps. These steps include Formal Application: Customers are required to fill in the prescribed account opening form, which the bank provides to the customers free of cost. In this basic information about himself is provided by the customer like his name, address, occupation and nature if account he wants to operate. Obtaining introduction: Introductory references are quid pro quo for opening the account. For this it is necessary that an existing customer verify the authenticity of the facts provided in the account opening form. Specimen Signature: The customer gives the banker a specimen signature generally taken on a card specially designed for this purpose. Name of the customer and account number are entered on it. This specimen signature is used later on by the bank to verify the signature on cheques drawn on the bank by comparing these signatures on the card and the other on the cheques.

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Minimum Initial Deposits: The customer has to make a certain minimum deposits to open an account. However, later on customer can withdrawn part of this amount but must maintain minimum deposits to avoid closure of the account or service charges. Operating the Account: When the account is opened banker customer relationship is established. The customer in order to be able to operate the account is given the following documents: Pay-In-Slip Book: This book is issued to the customer containing slips upon which money is deposited. Each slip contains blank spaces for amount, account number, date, depositor signature and name of the account holder. Cheque Book: The customer to withdraw the money from the bank uses Cheque book. Cheque book consists of 10, 25, 100 leaves. When new cheque book is required by the customer he has to fill in the cheque book requisition slip with two signatures on it and give it to the concerned officer who on verification of the signature will issue new cheque book.

Qualification of the Customer: The relation of the banker and the customer is purely a contractual one. Therefore any person who is capable of entering into a contract according to the Section 11 of the contract Act 1872 can be a customer. However the following qualifications are necessary for a person to become a customer. He must be of the age of majority He must be of sound mind He must not be disqualified under any law. 3.2.3 Remittances Department One of the important functions of a bank is to transfer funds for customers from one location to another. Remittances department deals with the transfer of money for customer from one bank to another or from one branch to another. Instrument used by the Burj Bank LTD for remittances includes: Telegraphic transfer Demand draft Mail transfer Pay order a) Telegraphic Transfer Telegraphic transfer is one of the quickest modes of transferring funds. It is an electronic system of transfer ring funds that is why it is used by most of the businesses for the purpose of transferring funds. b) Demand Draft A draft is just like an order cheque. A draft is drawn by one branch of a bank upon the other branch of the same bank. The late down procedure is that the sender has to fill the beneficiary name, account number and his name in the form. After the deposit DD is given to the customer and transaction is registered in the issuing register and an advice is sent to the branch to which the DD is sent. It is common mode of fund transfer. It is different from telegraphic transfer and in sense that funds are not immediately to the collecting branch and the receipt of the branch. The collecting branch will credit the account of the beneficiary at the receipt of advice from the Paying branch. Demand draft can be open, which can be cashed at cash counter after properly identifying the true beneficiary, or crossed which can only be cashed by crediting is to the account of the beneficiary. c) Mail Transfer Mail transfer (MT) is same as Demand Draft, but the characteristic which makes it different from Demand Draft that in case of demand draft bank physically hands the DD to the customer And upon presenting the draft the amount can be withdrawn. But as regards the mail transfer one Branch sends instruction to the other branch ordering it to the credit the amount to the account of the person in whose favor the amount is deposited. d) Pay Order Pay order is the most convenient, simple and secure way of transfer money. It is just like demand draft except that pay order is made for local order of money where as demand draft is meant for remittances of funds from one city to other. 3.2.4 Cash Department Cash department basically handles cash receipts and cash payments. The procedure for which is given below a) Receipts Cash department receives money from customers for crediting it to their respected accounts for which then used for paying their bills or remitting to their creditors and suppliers as the case may be. When depositing cash the client fills the prescribed form of pay and slips wherein he provides basic information like the amount to be deposited, date, account nature and number etc. then he hands over the form and paying slip along with the money to the cashier to the counter. The cashier signs and stamps the form or paying slips and returns one copy of the same to the depositors. After the hours, all pay and slips to the computer section, which credits the same, their respective accounts. b) Payments

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When bank receives money from customer s, it undertakes to repay the same upon demand. The money can be withdrawn through cheques, drafts or pay orders. However before making payments, bank satisfies itself that the instrument is valid and there is sufficient balance in the customer account to support the payment. For making payments the procedure followed. Cheque is first presented to token clerk. Token clerk notes down date, amount on the cheque, and account number in token register, assign token number to cheque on the back of it gives token to the customer and then forwards the cheque to an officer to the check the signature and verify it with signature on specimen card which the customer signed at the time of opening the account.

The cheque is then forwarded to the computer department for verification of the balance. The cheque is then forwarded to the cashier who makes payment to person who presents the token. The process may differ from what mentioned above depending the nature of cheque. A cheque is defined as written order of a depositor to pay to or to order of a designated party or bearer, a specified sum of money on demand. 3.2.4.1 Kinds of cheques Basically there are three types of cheques. They are as follows. Bearer cheque: It is en cashable at the counter. Payments of the cheque can be made to any people who present it to the bank. Order cheque: It is also en cash able on the counter. But its holder must satisfied the banker that he/she is true holder and entitled to collect the payment of the cheque for this he/she has to prove his/her identity through an existing account holder of the bank. Crossed cheque: It is not en cash able on the counter. It can only be credited to the Payees account. If there are two persons having accounts at the same bank and one of account holder issues cross cheque in favor of the other then the cheque will be credited To the account of the person to whom the cheque was issued at debited from the account of the person who had issued the cheque.

3.2.5 Credit Department Burj Bank Ltd offer different mode of financing according to Islamic mode. There are main two types of financing modes in Burj Bank LTD Mudarabah and Musharakah. Other modes of financing are divided in two categories Short term financing and long term financing. 3.2.5.1 Banca Takaful Plan Keeping in view its spirit for innovation and providing its customers with the best Shariah compliant financial solutions, Burj Bank has joined hands with Pakistan's leading Family Takaful Company, Pak-Qatar Family Takaful Limited, to ensure a brighter and more comfortable future for you and your family. Now you can save and protect your family's future with a Takaful plan that is compliant to your beliefs and principles. There are two elements by which you can work to make your dreams into reality. One is by saving and the other by utilizing risk mitigation tools so that in the case of any unforeseen scenario your family is able to carry out your dreams as you had planned to. For both of these you have Burj Bank's Banca-takaful to help you. What is Takaful? Takaful is an Islamic insurance concept which is grounded in Islamic muamalat, and has been practiced in various forms for over 1400 years. Takaful comes from the Arabic word 'Kafala' - to guarantee. Takaful is not only a tool to mitigate loss or to make Halal profits; it is an ideology which promotes: Solidarity and joint guarantee Self reliance and self sustainability for community well being Assistance to the needy Community pooling system Product Features Saving for long term requirements (child education, purchase of property, retirement, marriage, etc.) Regular contributions are invested in a diversified portfolio of Islamic funds ranging from Sukuk to Mutual Funds. Flexible payment plan. Takaful cover allows family to receive funds in case of death of the participant. Benefits Access to a wider range of Shari'ah Compliant financial products and services. No need for further documents except Customer ID card No need for medical exams (conditions apply) No need to wait for manual underwriting. Total sales process takes 30 minutes Customer Service Available 24/7 at your nearest Burj Bank branch or Burj Phone Banking. Transparent terms, conditions and charges structure.
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Additional Benefits Increase and decrease your contributions* Switch Investment Strategies* Partial Withdrawal* Payment Deferral* *Conditions apply

3.2.5.2 Burj Carsaaz Burj Carsaaz provides you with the easiest and fastest processing of auto finance facility. With Burj Carsaaz you can have a car of your own choice without being heavy on your pocket. You are a salaried individual or a businessman; Burj Carsaaz is designed to meet vehicle finance needs of those who are aspiring to drive a new vehicle or change their existing ones. Features Minimum and Maximum Financing Limit > PKR 0.2 Million PKR 10 Million Tenors:1 year to 5 years Floating profit rates renewable each year Mandatory takaful and tracker installation Financing new, used and reconditioned / imported vehicles Minimum Security deposit to be 10% Age limit between 22 years to 65 years Co borrower facility

3.2.5.3 Fleet Financing Burj Bank offers fleet financing facility under Ijarah mode of financing to suit the specific requirements and financial needs of Corporate and SME customers. Our Fleet Financing proposition is aimed to fulfill the vehicle requirements of small to big corporate in a cost effective and swift manner. Features Maximum period Five (05) Years. Quick approval process Minimum documentation required Title of Ijarah vehicle in the name of Burj Bank Comprehensive Takaful of the Ijarah Assets Profit Rate:1 Year / 6 Month KIBOR + Spread (to be recovered along with monthly rentals) 3.2.5.4 Working Capital Finance (Fund based) Working Capital Finance for Local Manufactured Goods first time in Pakistan Burj Bank made the locally saleable fresh finished goods(produced by a manufacturer) as basis to provide finance to that manufacturer. Now the manufacturing concerns can avail working capital finance on goods manufactured for domestic market. The manufacturing concern thus now can enjoy the working capital facility equivalent to the agreed value of their finished goods. The tenor is made as suitable as the manufacturing concerns are able to manage their cash operating cycle days 3.2.5.5 Murabahah for Local and Imported Goods (Fund based) The Concept A contract of sale between a customer and Burj Bank Limited ("Burj Bank") under which Burj Bank first purchases the goods (permissible under Shari'ah) at the request of the customer and then sells these goods to the same customer after adding profit. The Murabahah Sale Price includes all acquisition costs borne by Burj Bank and a mutually agreed profit. Murabahah Transaction at a Glance 1. Request from the customer to Burj Bank for the purchases of specific local / imported goods. 2. Appointment of customer as agent of Burj Bank. 3. Bank purchases the goods upon request of the customer and takes ownership, thus transforming its money into goods. 4. After purchase of goods the risk of the goods is borne by Burj Bank until the ownership of the goods is transferred to the customer by way of offer and acceptance. At the same time, specification of the goods, delivery, place and other terms of the contract are ensured. Burj Bank's Murabahah Financing is available for local and foreign purchases of: Raw Materials Commodities Equipments/Machinery Other tangible assets Types of Murabahah
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Spot Payment Murabahah - Immediate repayment in cash against Letters of Credit (Sight). Deferred Payment Murabahah - Repayment on mutually agreed future date.

3.2.5.6 Equipment Ijarah Financing (Fund based) Ijarah is an Islamic mode of leasing and can be used for assets that are not consumed while they are in use, for instance, it can be a house, car or any other tangible asset. During the tenure of Ijarah financing the asset given by the bank remains in Burj Bank's ownership and all risks are borne by the Bank. According to Shari'ah compliant Car Ijarah financing, Burj Bank gives its car on rental basis to the customer against agreed payment and period. After the determined period of Ijarah, customer may purchase the car at an agreed price or may return it back to Burj Bank.

Salient Features Free from Riba. Fully Shari'ah compliant. No up-front insurance payment. No up-front registration fees and related expenses. Minimum Tenor 3 years; Maximum Tenor 5 years. Payment period: Monthly/Quarterly/Semi-annually. Nature of Equipment/Machinery Foreign manufactured and purchased through Letter of Credit Locally manufactured all agreements/documents are approved by Burj Bank's Shari'ah Advisor. 3.2.5.7 Diminishing Musharakah Financing (Fund based) Diminishing Musharakah Financing for Plant/Machinery/Equipment/Factory Building Diminishing Musharakah is a Shirkat (partnership) based transaction through which Dawood Islamic Bank Limited (Burj Bank) and its customer contribute their equity at an agreed ratio for the purchase of equipment/machinery and other tangible assets. Diminishing Musharakah at a Glance Request from the customer to Burj Bank for the purchase of specific equipment/machinery. Burj Bank and the customer jointly contribute their share of equity at an agreed ratio to purchase the equipment/machinery by executing a Diminishing Musharakah Agreement. Burj Bank's share is divided into monetary units subject to purchase by its customer periodically until such time that the sole ownership of equipment/machinery is transferred in the name of the customer. Besides purchase of Burj Bank's equity periodically, the customer utilizes the usufructs/benefits of the equipment/machinery and pays agreed consideration to Burj Bank, periodically. As continuing security for the obligations of the customer, the following documents shall be executed between Burj Bank and the customer: Diminishing Musharakah Agreement. Agreement for Periodical Payment (Monthly/Quarterly/Semi-Annually). Undertaking to Purchase the Musharakah Units. Authority letter to be executed by customer in favor of Burj Bank to make an offer by the client to sell the ownership in property subject to Sale & Purchase Back Diminishing Musharakah. The customer shall create a charge over the equipment/machinery in favor of Burj Bank. All agreements/documents are approved by Burj Bank's Shari'ah Advisor. 3.2.5.8Working Capital Finance (Trade Finance) First time in Pakistan Burj Bank made the "exportable fresh finished goods" (produced by an exporter of Pakistan) as basis to provide finance to that manufacturer. Now the exporters can avail working capital finance on goods manufactured for export to international/foreign market. The foreign currency value of "exportable fresh finished goods" are agreed upon between Burj Bank and exporters to provide the best advantages of the local currency value to the exporters keeping in view the FOREX conversion rate. 3.2.5.9 Islamic Export Refinance Scheme (Trade Finance) IERS has been prepared by SBP, as the Shariah Compliant alternative to the Export Refinance Scheme (ERS) with the aim of providing finance at concessionary rates to exporters. DIBL can apply to SBP for allocation of ERF limit in favor of DIBL. Since the list of eligible commodities to be exported, operations of the scheme in terms of procedures/documentation and submission of relevant statement are essentially the same as under ERS, the distinctive features of the scheme are taken care by DIBL. Salient Features of IERS Under IERS the State Bank of Pakistan (SBP) shall provide finance to the DIBL on Musharakah (profit and loss sharing) basis. The branches shall be mandated to finance exporters (eligible under the scheme) through approved modes of Islamic Finance. (This in case of DIBL is Murabahah).

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3.2.5.10 Sight and Issuance Import LOC (Non Fund Based) These facilities are available at Burj Bank to facilitate traders, manufacturers and service providers to import goods to meet day-to-day Shariah Compliant business activities, in case they want to retire the LC from their own sources.

3.2.5.11 GuaranteeAl Kafalah (Surety ship) Definition of Kafalah Kafalah literally means guarantee. It is defined as a contract which combines one's Zimmah (Liability) with another person's Zimmah. OR Kafalah means to add an obligation to an existing obligation in respect of a demand for something. This may relate to a person, finance or act (performance). Types of Guarantees Performance Guarantees Bid Bonds / Tender Deposit Guarantees Guarantees for Advance Payment Mobilization Security Deposit Guarantees Guarantees for Payment of Dues Loan Repayment Financial Guarantees (For transactions under Islamic Modes) Permanent / Open-ended Guarantees Guarantees Expressed in Foreign Currency

3.2.5.12 Lockers Let us make this world safer and secure for you and your family. Our Safe Deposit Locker facility enables you to store your valuables in strong heat resistant steel lockers with 24 hour security. Be it jewellery, passports, share certificates or title deeds, you can rest assured that your valuables are not prone to loss, fire or theft. You can also nominate/authorize your dear and Loved ones to operate the Locker. Now you can live a carefree & stress free life while we take care of your valuables while retaining your privacy. Following are the key benefits that you will get out of using safe deposit locker facility protection against weather conditions & power failures with smoke-sensor's, backed by firefighting equipment and 24 hour manned security. A Locker custodian to offer friendly and personalized assistance. Maximum of four (4) deposit operators per Locker. Safety of your valuables from loss, fire and theft. Unlimited free visits to your Locker.

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Chapter 4: Analysis
4.1 SWOT Analysis
In past the organizations were limited to their own performance and outputs, they only consider what they get and what they lose, with the emergence of management studies and globalization now the organization cannot survive until they competes with their surroundings and then Internationally. World has set some standards for organizations so each and every organization have to look what is happening around? Todays organizations are perplexed with the phenomena of intense competition. It has become imperative for them to be taking guard for their survival. So in search for excellence it is the critical self-appraisal which is attached so much importance. Even in mundane affairs of life, introspection is necessary even at the individual level. Every sagacious person examines his conduct critically in relation to his environment. And then pauses, looks, transform and conform To what is required. If he doesnt he is lacking sagacity and world tells him emphatically. When we come towards organization then it is the question of its very survival. It is a practice, which is indispensable for future growth. There are many techniques to analyze the organizations performance i.e. input/ output analysis, pest analysis, SWOT analysis etc. SWOT analysis is kind of tool that is used to analyze an organizations performance in relation to its environment external or internal opportunities and threats. Strategy analysis and selection of the best alternative is of critical importance and prime responsibility for any organizations management. Management has to go through extensive internal and external analysis to determine their organizations performance in relation to their mission and objectives.

The SWOT analysis of Burj Bank LTD is as follows.

4.1.1 Strengths Advantages of religious proposition in a country made on name of Islam i.e. Pakistan. Competitive advantage: Less marketing is required than conventional banking and better cost control as a result. Morale and commitment to serve is higher among bankers and staff due to religious value. Huge amount of savings can be mobilized and thus boosting the deposit base of banks using charities and Zakat fund schemes, etc. Less use of money for speculative purposes thus chances of investment failure and much volatility in investment is reduced. Innovative aspect is also found in it, using phone banking, e- banking, etc. A blend of tradition and modern life can be easily served to customers. Location wise & geographically, it is feasible and operational all across the country, as Pakistan is 98% Muslim population country scattered in all nooks of national territory. Quality of services will not less than conventional banking services so a competitor to established banking (interest based) in same market.

4.1.2 Weaknesses Lack of standardization across the Muftis /scholars of the country and among the scholars and bankers. Disadvantage of proposition is that there would be a hesitant and new thing not fully accepted / suited to World Bank, ADB, and other multinational donor agencies to invest through banking sector in country. A lot of capital is needed to boost it in front of conventional banking, and also huge reserves have to be maintained, to meet any loss sharing situation in Islamic finance modes of investment. Time/season factor becomes a major problem in case of Islamic banks, as people would Like to shift their money from Zakat deductible accounts or they wish to pay their Zakat from Halal funds during Ramadan or on Eid festivals, etc. creating short term liquidity problems for the banks. There are differences in theory and practice of Islamic banking in Pakistan to some extent creating an inherent weakness. Management and staff need further training to serve Islamic financial services and relevant experience as well to done their job efficiently. Value chain management will become a major hurdle to Islamic Halal funds of Islamic banks, as it will need Islamic money and call money markets, investment opportunities with pure Halal businesses, Islamic equity market (instead of stock market), etc.

4.1.3 Opportunities More opportunities now lie in Islamic banking as it has been accepted by BASEL, WB, ADB, international agencies, multinational corporations, non Muslim governments, etc.
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With creation of big sukuk And Islamic deposit base in Gulf and Malaysian regions

Traditional interest based banking will have to defend through heavy marketing and Advertising in Muslim countries which off course reduce their profitability. Islamic banking is a complete solution to economic and to some extent social needs of Muslims from House building to education in addition to conventional help in commerce, business and industry. and information age, thus it is naturally blended with tools of internet, and computer based banking, and will witness a sharper growth than traditional banking growth of last 500 year s. New markets have been emerged with growth of Islamic banking as well: Islamic mortgage, Islamic insurance, new investment projects etc. In non-Muslim countries, like France where Muslim are in minority ( around 10%) of population, Islamic banking will enjoy the benefit of niche marketing and if properly targeted will obtain better results.

4.1.4 Threats A lot of legislation is required for Islamic banking worldwide and especially in non- Muslim countries; even in Pakistan some legal loopholes are present in its proper implementation. Comprehensive Islamic economic and banking models have yet to develop or they are not in their maturity stage to provide a blueprint of economic development and prosperity. IT developments and Research in latest Banking are in non-Muslim countries where conventional interest based banking have a very strong position thus Islamic banking will enjoy latest tools of IT, but lesser than conventional banking. Environment for Islamic banking in west has been declined after 9/11 attacks on WTC, New York and later Prophet Mohammad (P.B.U.H.) protests in Muslim world, widening the gaps between the western investors and Islamic banking markets. Market demand is good but very less as compared to conventional interest based banking throughout the world, i.e. beyond some countries. Sustainable financial backing by large multinational firms, investment banks, and World major economic powers is lacking.

4.2 CONCLUSION
Burj Bank Ltd is an Islamic bank in Pakistan. The mission of Burj Bank Ltd is to introduce Islamic banking in Pakistan and globally. They can work under leadership of Islamic Banking rules. This internship experience has been very much informative for me as it helped me in numerous ways like in learning new things and ideas about official environment and now I have the knowledge and experience of working in office environment I have realized my abilities and expertise of working in that kind of environment. Internship is a supervised pre-professional career related experience paid or unpaid, part or full time, with measurable learning objectives, formal evaluation. And it is requirement for MBA degree. The branch manager is usually given very little regarding sanction of advances and over draft whereas the responsibilities are numerous. I can study and make analysis on year 2010-11 annual report of Burj Bank LTD. Its fifth annual report of that bank but till yet bank is going in loss. There may be different reasons behind that bank is newly being opened and they can offer Islamic mode of financing. The branch yet not stared financing, that problem same as different cities with Burj Bank LTD branches. The mobilization of deposits is mainly considered as the responsibility of the branch manager but the rest of the staff is usually least interested The bank has been applying he modern concepts of management and marketing at both micro levels. The interior and exteriors of the branch have been changed but the staff of the branch has been found less motivated towards the organizational objectives. The decision making is still centralized as the middle and low level management is not taken into confidence. The promotional policy of the bank was observed as without any specific direction. Though the bank has defined its mission and vision but no specific plan has been designed so far. The bank staff has been found as less satisfied with bank policies and the recent retrenchment in the bank has created unrest and panic. The relationship between the employees of the branch is not that good because of which the whole environment of the branch becomes less favorable for work. Miss utilization of office utilities, especially the telephone.

4.3 RECOMMENDATION
The branch manager should arrange a training program for its existing employees to help them perform their duties more effectively. The branch manager can start financing in there branch with their existence capital.
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There should be a proper platform provided to its employees from where they can help the management in achieving its objectives. The branch should try to enter into the new markets for Islamic banking it would increase its competitive edge over the other branches in the region. The bank should appoint customers relation officer where the volume of work is too high. This will give an impression to client for personal Banking. This will help in improving the image of the bank and hence will attract more clients. An Automated Teller Machine should be placed in the branch because during my internship I found many customers complaining for the ATM machine. Burj Bank Ltd is not very well known bank in the market. Their market standing is not as strong as their competitors. For this Burj Bank Ltd should opt for heavy advertisement both electronically and on print media to create public awareness. This product Business Power is suffering because of this reason as well. The bank must ensure the participation of the staff in all promotional activities of the bank to this end the bank must adhere to the policy of fringe benefits rapid promotion of capable management and official. The old age benefit of the bank employee must be increased to motivate fee staff.

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References
Book & Web Reference: Islamic and finance bulletin (Oct-Dec 2008) issue by Islamic banking department SBP. Islamic and finance bulletin (July-Sep. 2008) issue by Islamic banking department SBP. Muhammad Taqi Usmani (Islamic Finance)

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