InternshipReport

2013
Internship Report
Bachelor of Business Administration Program

Name: Sundas Shahid

Reg. No.: 10- arid-1365
Specialization: Finance
Telephone: 0347-5216788
E-Mail: sunads.shahid2792@yahoo.com
University Institute of Management Sciences
University of Arid Agriculture Rawalpindi

Company Name: Dubai Islamic Bank Pakistan Limited

Main Telephone Number(s): 051-5707375-76
Fax Number: 051-5707377
Postal Address: 0067

Supervisor Name: Mr. Ahmer Abidi

Supervisor Telephone Number: N/A
Start Date for Internship: 15-8-2013
End Date for Internship: 26-9-2013
Report Date
1822014

Evaluation
Sundas Shahid
completed internship at

Dubai Islamic Bank Pakistan Limited

Internship report submitted for the Final Evaluation in
Partial Fulfillment of the requirements for the Degree of

Bachelors in Business Administration

It is certified that, the Internship report and the work contained in it conforms to all the
standards set by the Institute for the evaluation of any such work.

1.

2.

3.

4.

University Institute of Management Sciences

University of Arid Agriculture, Rawalpindi
2013
2

TABLE OF CONTENT

Serial No.

Section 1

Title

Page No.

Acknowledgement

04

Executive Summary
03
History of DIBPL

05
06

Introduction of DIBPL
07
Section 2

Product and Services of DIBPL

SWOT Analysis
Organizational Structure
Marketing Strategy
Competitors Analysis

Section 3

11
12
13
14-20

Remittances Section

20-23

Clearance Department

24-27

Analysis
Recommendations

Section 5

09-10

Account Opening Department

Utility Bills Acceptance and Pension Department

Section 4

08

Conclusion

27
27
28
29

ACKNOWLEDGEMENT

First of all I am thankful to "ALMIGHTY ALLAH" Who gave me the strength, patience, courage
and enthusiasm needed to write and complete this report, and countless acknowledgments to
upon the Holy Prophet Muhammad (PBUH), the sea of knowledge who has guided His Ummah
to seek knowledge from cradle to grave.
Then to my friends who assisted me in this effort and we worked daylong to accomplish this
assignment. I have a debt of appreciation to all my teachers who taught me throughout my
academic career.
The preparation of this report was a massive undertaking but the highly capable and experienced
management of Dubai Islamic Bank for provided me with all assistance, information, advice and
suggestions that I needed which contributed importantly to this report

Executive Summary
As per the requirements for the degree of BBA at University Institute of Management Sciences
Arid Agriculture Rawalpindi, I got an opportunity to do six weeks internship in Dubai Islamic
Bank, Ground Floor, Street No 12, Wallayat Complex, Main Expressway, Bahria Town,
Phase VII, Rawalpindi. During my internship I worked in the various departments in order to get
in depth idea of how the bank operates its functions. This report overall outlines and explains my
observations, findings
In this report, there is an introduction of Dubai Islamic Bank. In introduction, there is history of
Dubai Islamic and analysis and my knowledge of the banking sector in general and Dubai Islamic
Bank in particular. Bank, strong commitment and loyal service, highly trained professionals. The
report also includes the details of the products offered by DIBPL 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 by doing this internship. The report also contains my
analysis that I examine in the organization by using SWOT and examine their Marketing and
Competitive strategies. With the help of these findings 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.

History
Thirty years ago, Dubai Islamic Bank ('DIB') created history by becoming the world's first Islamic
Bank. Today, Islamic banking has become one of the firmest growing economic sectors with over
300 financial institutions, with assets projected at over US $300 billion providing Islamic
financial services. Despite huge growth in the sector DIB continues to be the industry innovator
and undisputed market leader to date. Since its beginning, DIB has evolved from a retail bank to a
fully-fledged bank catering to almost all the requirements of its customers in providing Shariasubmissive solutions to major local and international companies. It has constantly upgraded its
services to private individuals, who remain a highly valuable element of DIB's customer base. By
combining the best traditional Islamic values with high-standard technology and innovation, DIB
is committed to not only fully comply with the principles of Sharias in all its financial dealings
but to also simplify its customers who undertaking into the world of Islamic banking in such a
befitting way that they would feel reaping the best rewards of both the worlds. For its outstanding
presentation and contribution to Islamic financing, DIB received the Best Islamic Bank in the
Middle East Award (2006) by both Euro moneys Islamic Finance Weekly and Gulf Wealth
Forum. DIB has also been awarded the Bank of the year (UAE) at the 2006 Banker Awards. DIB
has not only been at the forefront of innovation but has excelled every step of the way. With the
launch of Al Islamic Internet Banking, DIB has re-confirmed its commitment to promote and
develop Islamic banking in line with the necessities of the modern age. For these efforts, DIB
received the Golden Trophy at the UAE Web Awards in 2006. DIB is also the first to offer a
mobile SMS messaging service in both Arabic and English. Moreover, DIB became the first bank
in the Middle East to introduce Internet Protocol (IP) for its Visa card operations. With pathbreaking vision and bold strategies, DIB goals to enhance its status as a world leader committed
to the goal of providing "World Class Banking."

Introduction
The State Bank of Pakistan (SBP) awarded to Dubai Islamic Bank Pakistan Limited (DIBPL), the
license for the establishment of its procedures in Pakistan on Saturday, November 26, 2005. Since
then, DIBPL has undertaken major creativities to expand its branch network across the country.
Under its consumer banking division, the bank is offering state-of-the-art Sharia obedient
products that effectively strive with those being offered in the market by conventional banks. It
also has knowledge in providing Retail, Private, Small and Medium Enterprises, Corporate,
Investment Banking and Advisory services. The Bank launched Pakistan's first Islamic Visa Debit
Card and introduced financial products covering Home Financing, Auto Financing, and
Depository products. DIBPL has also introduced Priority Banking and Internet Banking, both of
which are being known as benchmark products in their respective categories. Besides regular
banking services, the Bank is committed to bringing foreign investment to the country. DIBPL's
corporate wing has actively pursued foreign investors and persuaded world renowned giants from
the GCC to be part of Pakistan's economy. DIBPL is a Public Limited company. DIBPL is
operating through 150 branches approximately, located in 40 cities across Pakistan. Its total worth
is Rs. 10 billion. DIBPL is 100% owned by Dubai Islamic Bank PJSC (Public Joint Stock
Company) and its nominated shareholders. The parent company is a listed company in Dubai.

Mission Statement
To provide diversified sharia compliant financial services and products through the best of
innovation, talent and operational excellence while ensuring consistent growth and profitability

Vision Statement
To be the leading Islamic Bank providing Sharia compliant financial services, by creating value
for all stakeholders

Values
Trust, Communication, Innovation, Caring One, Team and One Goal

Products offered by DIBPL

1. Current Account
2. Saving Account
3. Fixed Deposits
4. Home Finance
Home Purchase.
Purchase of undivided share (Home Renovation).
Purchase of undivided share of property from other bank (Balance Transfer)
5. Auto Finance
6. Priority Banking
7. Business Finance
Purchase of undivided share (New to Bank / Fresh)
Purchase of undivided share of property from other banks (Balance Transfer)

Services offered by DIBPL

1. Internet Banking
2. Phone Banking
3. Lockers
4. Cash Management Services
5. Trade Related Services
6. Investment Banking Services
7. Bank Takaful service (Insurance)
8. ATM service

Business Operations
SWOT Analysis of DIBPL
Strength
8

DIB has this privilege to be the first in the Islamic Banking sector which give DIBPL a
competitive edge over all other banks and being the innovator of this industry. DIBPL is

enjoying the status of the first international Islamic Bank in Pakistan.

The members of Sharia Supervisory Board of DIBPL are internationally famous scholars,

helping on the boards of many Islamic Banks operating in different countries.

Dubai Islamic Bank Pakistan has been named as the Best Islamic Bank in the area by

Banker Middle East Magazine.

According to SBP it is a most rapidly growing bank in Islamic banking sector and really a
big risk for competitors.

Weakness

Lack of advertisement of their services is one of the weaknesses as we did not see any of

their advertisements.
As people are not much aware of Islamic product so this reduces their sales.
As DIBPL follows centralized system so system becomes time consuming.
Less number of branches as compared to other Islamic banks.

Opportunities

To increase network of their branches is the opportunity for Dubai Islamic bank
Launch of new financial products by the bank could help it sustain in highly competitive

banking environment.
DIBPL has an opportunity of doing business with the companies having Islamic mindset

i.e. Islamic Financial Institutions.

DIBPL has an opportunity to start such a project that increases awareness among people
about Islamic banking operations.

Threats

Intense competition among Islamic and commercial banks may keep profit margins at

minimum.
In case of Islamic banking SBP does not affirmed any policies that are enforceable by law.
All the governmental policies are particularly for conventional banks not for the Islamic

banks.
Poor economic and political situation of country is a threat for bank.

Organization Structure

10

Head
of
Comp
liance

Head
of
Corpo
rate

Head
of
Oper
ation
s

Head
of
Treasu
ry

Head of
Finance

Chief
Operati
ng
Officer

Head of
Manage
ment
Division

Head
of HR

Head
of IT

Head
of
Consu
mer

Branch
Manager

Deposit
Depart
ment

HR
Dept.

Cash
Dept.

Pension
depart
ment

Advanc
es
Depart
ment

Clearan
ce
Depart
ment

Remittanc
es Section

11

Marketing Strategy
Dubai Islamic Bank Pakistan Limited is growing rapidly in Pakistan. This shows the success of its
different strategies. The DIBPL is mainly focusing on corporate sector. Small and medium sized
companies are its main customers. The reason behind focusing on corporate sector is that a single
company can deposit a large sum of money that is difficult to attain by concentrating on
individual customers. It does not mean that DIBPL is missing the other side of the picture. It has
also got individual customers. Corporate sector constitute 80% of all the deposits of the bank.
This is the reason DIBPL is focusing on corporate sector.
DIBPL has no focus of advertising. This is also a weakness of DIBPL, because its customers are
expenditure a lot of funds on advertising. Competitors are taking full advantage of it. As DIBPL is
offering products and services to individual customers, so they need to connect their products and
services with people through print and electronic media.
Dubai Islamic Bank Pakistan follows growth and expansion strategies to improve its operations
and to increase number of customers. To addressing the needs of a constantly changing
environment, the bank recognizes the significance and value of streamlining its operations.
Hence, it has announced the formation of a Business Group and a Support Group to ensure the
successful implementation of its strategy through an effective organization structure. "Dubai
Islamic Bank Pakistan is embarking upon a new phase of growth and expansion, and their
structure has been aligned in such a way to capitalize on this business potential," said by the Chief
Executive Officer, DIBPL. He added: "I am confident that the strengthened management team
will enable the bank to effectively implement its business strategy, while continuing to provide
customers with innovative Sharia-compliant solutions that meet their evolving needs."
In line with its long-term expansion strategy, Dubai Islamic Bank Pakistan endures to focus on the
opening of strategically located branches while also increasing its total customer base. DIBPL
aims to strengthen its branch network by 10 more branches in 2014.
12

Competitive Analysis
In Islamic Banking sector, the competitors of DIBPL are Bank Al-Barkah, Bank Islami, Meezan
Bank and some branches of Bank Alfalah which are dedicated for Islamic Banking services and
other commercial banks. Two major competitors of DIBPL are:

Meezan Bank
Meezan Bank is an Islamic bank based in Karachi, Pakistan. The Bank began operations in 2002,
on being issued the first-ever Islamic commercial banking license by the State Bank of Pakistan;
in 2012. Meezan Bank completed a journey of 10 years of Islamic Banking in Pakistan. Meezan
Bank Ltd. is a publicly listed company with a paid-up capital of Rs. 9 billion (March, 2012). The
Bank offers a range of personal and corporate Islamic banking products and services through a
retail banking network of over 280 branches in 88 cities. Backed by a state-of-the art T-24 core
banking system, the branch network is supported by 24/7 banking services that include over 200
ATMs, Meezan VISA Debit Cards, Internet Banking, SMS alerts and a 24-hour Call Center.
Meezan Bank has an in-house Sharia Advisor and a Sharia Supervisory Board composed of
Sharia scholars; the Bank functions strictly under the principles of Islamic Sharia and is well
recognized for its product development and Islamic Banking research and advisory. Meezan Bank
has been reliably recognized as the best Islamic Bank in Pakistan by various local and
international institutions over the past several years including Best Islamic Financial
Institution in Pakistan by Global Finance magazine and Best Islamic Bank in Pakistan by
Islamic Finance News of RED money Group, Malaysia.

BankIslami Pakistan Limited

BankIslami Pakistan Limited is located in Karachi, Sindh, Pakistan. BankIslami Pakistan Limited
was the first Islamic Commercial Bank to receive the Islamic banking license under the Islamic
banking policy of 2003 from State Bank of Pakistan on March 31, 2005. The Bank started its
13

operations from April 7, 2006 and offers sharia obedient retail banking, investment banking,
consumer banking and trade finance products. The Bank means to focus on Wealth Management
as the core area of business and plans to soon launch Proprietary products, and combined financial
planning services. The Bank has a nationwide existence, its branch network consists of 102
branches & sub branches spread over 49 cities of Pakistan.

Work Description
I have done six week internship in DIBPL , Ground Floor, Street No 12, Wallayat Complex,
Main Expressway, Bahria Town, Phase VII, Rawalpindi. During my internship I have worked
in various departments of bank. The reason for selecting DIBPL was that it is among those few
banks which performed ordinarily well in less time and clutched the market share with their
products, services and different banking experience. The bank encouraged young minds to
come and work with them. The working environment of the bank is good and growing. It is
one of the very few organizations that give a safe working environment for female and
provide them equal opportunities for growth in contrast to male employees. The
employees of the bank are really helpful and help a lot in providing knowledge and expertise to
new entrants and internees. Another reason for selecting DIBPL was that they keep a complete
record of the performance of the internees and offer job to those who perform well after the
achievement of their degrees. I have completed my internship in a total duration of six weeks
and department that I worked during this time are as follows
1. Account Opening Department
2. Remittances Section
3. Clearance Section
4. Utility Bills Acceptance and Pension Section

1. Account Opening Department

14

I started my internship in the account opening department where my supervisor was Mr. Ahmer
Abdi. He told me the basics of account opening. I spent two week in this department. The
things which I have learned in this department are shown as below

Procedure of Account Opening

Account opening is the most important department of a bank; the reason is that it is where a
customer- banker relation starts. The procedure which I am going to explain is the general
procedure of account opening which is applicable to all categories of accounts. The required
documentation is discussed after the procedure for each category of account. The three
significant steps in the account opening process are:

Obtaining the Required Documents.

Proper Introduction of the Account.
Know your Customer (KYC) details.

The following procedure is followed for account opening purposes:

Introduction of Account.
Obtaining CNIC from the Customer
CNIC Verification from NADRA.
Verification of the Customers Name.
Occupation/ Employment Evidence.
Verification and scanning the signatures on Account Opening Form and SSC (Signature

Specimen Card).
Sending Documents to CPU.
Initial Deposit.
Letter of Thanks.
Issuance of Cheque Book

Introduction of Account
Introduction of an account is one the basics from State Bank of Pakistan. The summary of an
account can be given by the DHCPL account opening officer. It is very important to guide the
user and tell them the features, rules and regulation of each account types.
15

Obtaining CNIC from Customer

After the introduction of the account, the customer is given the account opening form (AOF)
and he/she fills out the necessary columns which are required for the purpose of account
opening. After filling out the form, photocopy of the CNIC is obtained from the customer. The
account opening officer ensures in this case that CNIC must not be expired.

CNIC Verification from NADRA

The CNICs of the customers are verified through the NADRAS specialized software which is
called as VERISYS. This software is being used in DIBPL for the purpose of the
confirmation that whether the applicant is a Pakistani citizen or not and all the information
written in account opening form are true or not by corresponding the information to the
database of NADRA.

Verification of the Customer Name

The persons name whose account is to be opened is confirmed from the following two
documents:

OFAC (Office for Foreign Asset Control).

Concerned Party List (CPL).

The OFAC and the CPL contains the list of those customers which have been jammed for any
kind of financial and public dealings and it ensure that new customer is not in the blacklist of
State Bank defaulter or his name is not in the any extremist organization.

Occupation/Employment Evidence
The occupation or the employment evidence is obtained from the customer in the shape of a
letter confirming occupation, alternatively a business card in case if customer is employed.

Verification and Scanning the Signatures on AOF and SSC

16

The signatures on the completed AOF and SSC must match with each other. The account
opening officer must give sensible attention for the purpose of confirmation of the signatures.
This is physically done by the officer without using the system. After verification the branch is
responsible for the scanning of signatures from SSC and AOF. The scanned signatures are
recorded in the database of the system and are quickly considered for future transactions of the
customer

Stamping of the Account Opening Form

After gathering the necessary information from the customer along with the documents and
internal documentation of the bank, the stamping is complete on the AOF. The following
stamps are required for this purpose:

A/c Opening in my Presence stamp.

OFAC/CPL Checked stamp.
Bank Manager stamp and their signatures.
Original Seen stamp on ID cards

Sending Documents to CPU

After stamping on the account opening form, the account opening set is sent to the Central
Processing Unit (CPU) for the purpose of the confirmation of the account opening documents
because the account opening procedure is also centralized. The account opening set contains
the following things:

Cheque Book Requisition.

SSC (Signature Specimen Card).
A/c Opening Form

Initial Deposit
After the confirmation from CPU after three working days that the account has been opened for
the customer, the account number is allotted to the customer and the customer deposits an
initial amount in cash. Cheques may only be recognized as part of the initial deposit in the case
of absolute customers and on the personal responsibility of the branch manager.

17

Letter of Thanks
Letter of thanks is the letter issued by the bank to the customer for two purposes:

First purpose is to say thanks to the customer for opening the account in their bank.
Second purpose is to check the address delivered by the customer while opening the

account

Issuance of Cheque Book

Cheque book is issued to the customer after sending the letter of thanks when the customer
comes with the letter of thanks and needs for the issuance of the cheque book. A cheque book
(usually having 25 leaves) is delivered to the customer. The first cheque book is issued free of
cost, but the subsequent are charged Rs. 5/- for every leaf. The procedure in this manner is to
complete the cheque book requisition containing title of account, account number, type of
currency and signature of the customer. Signature of the customer on the cheque book
requisition is confirmed through the system. Particulars are entered in the cheque book
issuance register. After taking these necessary steps, the customer is given the cheque book and
the concerned staff takes the customers signatures on the cheque book issuance register and
affix stamp of signature verification. After verifying signatures from the system, the account
opening person signs the stamp and issues the cheque book after taking signatures of the
account holder on the cheque book requisition acknowledging that he/she has occupied the
cheque book.

Categories of Accounts
An account can be opened in any of the following categories:

Current Account
Saving Account
Fixed Deposit Account

18

Current Account
Based on the Wadiah contract, the Current Account deals users safe keeping of their cash
deposits. Through the Wadiah contract, the depositor authorities Dubai Islamic Bank to invest
his money in Sharia compliant investments. The cash standing to the credit of the Current
Account is neither entitled to investment profit nor does it bear any risk.
The Current Account is offered in the following currencies:

Pak Rupees
US Dollar
UK Pound
EURO
Japanese Yen

The Current Account can be opened with as low as PKR 10,000

Saving Account
By investing in the Dubai Islamic Saving Account you authorize the Bank (Investment
Manager) to invest your funds. On the basis of unrestricted Mudaraba contract permitting to
the principles of Islamic sharia, profits earned or losses incurred are shared on the basis of
invested amounts.
The Saving Account is offered:

Pak Rupees
US Dollar
UK Pound
EURO
Japanese Yen

The Saving Account can be opened with as low as PKR 25,000.

19

Fixed Deposit Account

Dubai Islamic Fixed Deposit Account offers the ideal mix of long and short term benefits to
depositors looking for smart and Halal returns on their savings. With a history of high profit
payouts Dubai Islamic Fixed Deposit Account is an excellent investment vehicle for depositors
with surplus funds.
By investing in the Dubai Islamic Fixed Deposit Account, the depositor (fund provider or
Rabbul-Maal) allows DIBPL (fund manager or Mudarib) to invest his/her funds on the basis of
clear Mudaraba contract according to the principles of Sharia. DIBPL invests these funds in its
Common Mudaraba Pool with other deposits and the shareholders equity. The profit on the
Common Mudaraba Pool is dispersed amongst the shareholders and depositors on the basis of
agreed upon weightages which take into consideration the mood, amount of deposit and profit
payment frequency of the account.
Fixed Deposit placements can be made in:

Pak Rupees

US Dollars

2. Remittances Section
In the third week of my internship I was moved to the remittances department where my
supervisor was Mr. Ahmer Abidi. He was very boosting personality and helped me in each and
every way to know the domain of remittances and the practical work involved in it.
In Remittances Section I deal with following things:

Pay Orders.
Western Union Money Transfer
Term Deposit Receipt (TDR)

20

Pay Order
In DIBPL, P.O is payable at any of the Dubai Islamic banks branch in Pakistan. Payment
through pay order is a definite payment. The reason is that when pay order is made, the
candidate who has an account with the Dubai Islamic bank is debited and the amount is added
to the pay order account. And from that account, the recipient account is credited for the
amount of pay order. DIBPL only issues Payee Account Only pay orders. Pay orders in cash
are not issued in DIBPL.
Procedure for the Issuance of Pay Order
When a customer comes for the issuance of pay order, the processing steps includes the
following:
1. The client is given the Funds Transfer- Application Form.
2. The client fulfills the application form which includes the following details:
3. Transaction Details.
It includes Amount in Figures and Words.

The desired Currency.

Method of Payment.
Recipient Details (In whose favor P.O is issued).
Candidates Detail (Who Requests for P.O).

4. The filled form along with the cheque is given to the remittance officer who confirms the
form through the following stamps:

Sign Verification (Where the client has done the Signatures) on the application

form.
Transfer Posted (Means amount is transferred from the Candidates account to the

Recipients Account).
Time Stamp (Covers the Date and the Time of Receiving of Application).

5. The remittance officer then makes the essential entries in the system by debiting the account
of the candidate and crediting the account of the recipient. The commission is subtracted at the
21

time of issuance of the P.O. The commission charges are flat Rs. 80/-which are charged to the
applicants account. After the entries, the P.O is ready to be given to the customer.

Western Union Money Transfer

The Western Union is a counter payment which means that the sender of the money does not
essential to have an account with DIBPL. The process followed by the remittance officer in this
context is as follows:
The person who wants to receive money is given the Western Union Money Transfer form.
The person fullfils the following details on the form:

Date.
MTCN (Money Transfer Control Number). It is a unique number which is given to the

person sending the money abroad by the money exchanger of that particular country.
Sender Name. The name of the sender must contain the surname.
Sender Country.
Amount in PKR (Approximate Amount).
Receiver Contact

When the customer completes the form, the remittance officer requests for the photocopy of
the legal identity card of the receiving person. If the ID card is not available, the photocopy of
the passport is occupied from the customer. The officer then makes the needed entries in the
Western Union software which is installed at DIBPL. The entries are made in the software in
the form called as To Receive Money. After making the entries, the print out of the form is
occupied, the officer signs the western union form. The money transfer form is kept by the
bank for its own record purposes. The customer is given the To Receive Money form and the
client puts his/her signatures on the form and takes the payment from the counter by giving
such form and photocopy of ID card.

Term Deposit Receipt (TDR)

22

TDR is an amount of money either in Pak rupee or foreign currency kept for a fixed term focus
to profit and loss. The receipt is a non- negotiable item. The minimum amount for opening a
TDR is Rs. 25000
When the customer comes to the bank for the opening of a new TDR, then the following
procedure is adopted for this purpose:
1. The client is given the Term/Notice Deposit- Application Form.
2. The client fulfills the form which contains the following fields:

Title Account.
Amount of Investment in Words and Figures.
Term/Notice Deposit Duration.
Profit Payment Frequency (Monthly, Quarterly, Half Yearly, Yearly, and On Maturity).

3. After filling the application form, the client signs the form and hands it over to the
remittance officer. The remittance officer after examination of the form attaches the following
stamps on the form:

Time Stamp.
Sign Verification stamp

4. After stamping, an Inter-Office Memorandum (IOM) is arranged which contains the TDR
amount, its tenure, profit rate, account number. The IOM is duly signed by the branch manager
and the manager operations.
5. The completed form, IOM and the profit rate support sheet from the branch manager or area
manager is sent to the DIBPL head office (Karachi) for the approval of TDR.

3. Clearance Section
23

After working in remittances section I moved towards the clearance section. I spent two weeks
in this section. Here my supervisor was Mr. Ahmer Abidi. During my stay in this department,
my supervisor told me the basics and the practical work involved in cheque clearing.
The major things involved in this context are to be discussed here.

Types of Clearing
The Clearing process is of two types:

Inward clearing
Outward clearing

Inward Clearing
Inward clearing is where the DIBPL customer draws cheque in the favor of a nonDIBPL customer. The inward clearing process cuts the deposits of the bank. In DIBPL, inward
clearing is now centralized and the CPU (Central Processing Unit) at the Mall does all the
inward clearing like verification of cheques, stamping and posting etc. In case of any
difficulty, the CPU sends faxes to the respective DIBPL branches regarding the confirmation of
client and also the signature verification of the client. The branches then reply to the faxes after
necessary verification and fax them back if the status of the customer is ok and ask the CPU to
make the payment. In case of any variance in the signatures of the client as per stored signature
database, the bank carefully monitors and discourages the payment of such doubtful cheque.
The branch only preserves all the correspondence with the CPU in a separate file named as
Inward Clearing to CPU.

Outward Clearing
Outward clearing means cheques drawn by non-DIBPL customers in favor of the
DIBPL customers and deposited in one of the branches of the DIBPL. The outward clearing
rises the deposits of the bank. The outward cheque clearing process is now centralized meaning
there by all the posting of the cheques is done at the CPU. When a branch receives cheques to
be sent for local clearing, the following work is done:

24

1. Counter foil of the pay-in slip signed by an official officer of the branch bearing the stamp
Received for Clearing is returned to the customer for his/her record.
2. The cheques expected at the counter are then given to the clearing department for the
purpose of clearing.
3. The clearing officer does all the necessary search of the cheques like:

Checks the date of the cheque. This is the most significant thing in the cheque clearing
process. The postdated cheques should not be expected for clearing. They should be

received on the date stated on the cheques.

The amount in words and figures must be coordinated.
The account title must be same on the cheque and the banks copy of the deposit slip.
The cheques are tested for crossing whether it is simple crossing or payee account
crossing. In simple crossing, the cheque is deposited in the account but it can be
certified in favor of another party other than the name of the payee on the cheque. In
account payee crossing, the amount must be credited in the account bearing the name

on the cheque.
The clearing officer makes sure that there should not be any cutting and overwriting on

the cheques.
The cheque should not be damaged. If so, the stamp of Mutilation Guaranteed must
be affixed at the back of the cheque and is duly signed by the official officer.

After looking for the necessary components of the cheque, the next procedure is to attach
stamps on the cheque and the deposit slips

Stamping on the Cheques and Deposit Slips

For cheques, two stamps are affixed:

Payees Account Credited on the back of the cheque.

Clearing Stamp on the front of the cheque.

For deposit slips, only one stamp is used:

Clearing stamp

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The stamps are duly signed by the authorized officer of the bank. In DIBPL Bahria town
branch, the manager operations Mr. Mubashir Ahmed Sheikh sign the stamps.
The date on the clearing stamp is always one day ahead, because the cheques are offered in the
concerned branches the next day for payment.

Preparation of Excel Sheet

All the cheques are entered in the excel sheet in lots of 50. In the excel sheet, following are the
fields that are filled:

Cheque volume.
Deposit slip volume.
Depositors account number.

Jotting
After the preparation of excel sheet the cheques and the deposit slips are separated and jotting
of cheques and deposit slips is separately done in order to guarantee that the total of all cheques
settles to the total of deposit slips/vouchers.

Cheques ready to send for clearing

After jotting of cheques, the cheques are hustled in lots of 50 and a bundle cover is attached to
the cheques which are delivered by the NIFT containing the following information:

Bank /Branch code.

No. of Instruments.
Date.
Amount of total cheques.
Signature by the Manager

After preparing bundle covers, a sheet is prepared titled as Outward cheques for Clearing
which includes the total number of instruments and the deposit slips and the combined amount
of the cheques. The sheet is duly signed by the Manager and is then attached with the bundle of
cheques and the deposit slips and send for the purpose of clearing to the CPU Mall where these

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cheques are again examined and entries are posted in the system. After posting the cheques, the
NIFT riders come to CPU and gather the cheques for clearing.

4. Utility Bills Acceptance and Pension Section

After that I spent my last week in Utility Bills Receiving and pension section. In DIBPL there is a
same counter for both activities. DIBPL accepts the utility bills of KESC, PTCL and SSGC on the
behalf of the respective companies. SSGC slabs are sent to Tameer Micro finance bank to further
process while KESC and PTCL slabs are sent to NIFT. For pension bank take ID card and pension
clip from Pensioner and after verification give them amount of pension and enter the record into
the system.

Analysis
My internship experience has given me a realistic preview of my field of education. Now I feel
that I am better ready to enter the world of professional work. I feel privileged that I have worked
with such experienced professionals. I must acknowledge that such interaction in this respectable
professional community will help me in seeking out job chances in the near future. Each task I
performed was a different experience in itself. By the end of it, I must say I get my potentials, I
have recognized that earning money is not so easy after all, it takes a lot of hard work and
devoutness, and not to forget time. I definitely have learned things, which will impact my career
and my character. The overall involvement of my internship was very good; I have learnt the
sense of accountability in its literal meaning. I am now capable of dealing with different type of
customers, and how to be patient while doing so. Besides this I also gained knowledge about
banking which I previously required and many more products being offered by the bank. So, this
internship gave me the experience, which would no doubt increase my confidence to work in
future.
DIBPL is an effectively operating and profit making institute and carrying out its activities under
a listed system of procedure. The main regulatory body is State Bank of Pakistan, which delivers
policy guidelines and ensures that the money market functions on sound professional basis.
While the head office specifies the whole procedure of task and operations. This practice
has been reorganized with the passage of time with a view to streamline the approach and
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underlying procedure for effective overhauling of its own competences so as to bring them at
par with international practices. There are people who are interested towards their work but
on the whole, it seems like employees do not work on time and enjoys wasting their time,
which is a big obstacle in its way to progress.

Recommendations
Here I am giving some suggestions, which in my view can add some input for efficiency and
better performance of DIBPL as an organization in general and Bahria Town Branch in
Particular.

Staff strength should be enhanced

The bank should spend more on renovation of the branches to improve environment and

atmosphere to attract the customers.

Sitting arrangement, air conditioning and new furniture should be simplified.
Bank should take step to establish separate counters for the old age employees and

pensioners.
For collection of utility bills i.e. Electricity bills, Telephone bills, Water and Gas bills

separate cash receipt counter must be established

The bank should do proper and effective advertisement, and enhance its public image,
goodwill and appeal more customers towards Islamic banking by doing efficient

advertisement.
DIB does not provide jobs security to the employees. Most are hired on predetermined
bases on the start. Bank should hire employees on permanent bases, providing job security

and satisfaction.
DIBPL needs to improve its website. More information relating to financial performance

of the
bank should be available on the website
DIBPL should continue to expand its business, by increasing its number of branches.
DIBPL should start such project that is related to Islamic banking so that it increase the
knowledge of customer about Islamic Banking

Conclusion

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I spent six weeks of my internship in DIBPL Bahria Town, Rawalpindi. During these six weeks, I
felt myself to be a part of bank. Even, this was my first practice of working in a bank but I learnt a
lot from this practice. In start of this report, the history of DIBPL and its introduction is provided.
The products and services provided by bank are also discussed in the first section. In the second
section of this report, the complete analysis of the bank has been provided. SWOT analysis
stressed the banks strengths, weaknesses, opportunities and threats. Competitors analysis has
provided the overall picture of competitive environment, various marketing strategies opted by
the bank has been analyzed in detail. Section four is about my personal experience and
contribution. Personal experience is an exact of what I have learnt during my internship. At the
end the report has been concluded with summary and recommendations in the final section.

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