AN OVERVIEW OF GENERAL BANKING OF IFIC BANK & AIBL BANK WITH DIFFERENCES

2. Ms. Amreta Biswas
Lecturer
Department of Business Administration
Central Women’s University
Farjana Akhter
ID: 2018-2-16-005
Department of Business Administration
Central Women’s University

4. Table of
Contents
01 Introduction
02
General Banking
Activities Of IFIC Bank
03
04 Comparisons
05 Conclution
General Banking
Activities Of AIBL Bank

5. INTRODUCTION
General banking is the heart of banking activities. Total banking procedure
start with this department. General banking department perform the core
function of bank operation and it is known as “Retail Banking”.

6. GENERAL BANKING ACTIVITIES OF
IFIC BANK
International Finance Investment and Commerce (IFIC) Bank is a
Conventional Private Commercial Bank. It has all the required sections of
general banking activities come under General Banking section of IFIC
Bank are as follows:
 Account opening section
 Bills and clearing section
 Remittance section
 Cash Section

7. Account Opening Section
 The relationship between banker and customer begins with the
opening of an account by the customer.
 Opening an account binds the customer into contractual relationship.
 Infect all kinds of fraud & forgery start by opening an account. So,
the bank should take extreme caution in selection customers.

8. Cont…
1.
Current Deposit
(CD)
Under this section, IFIC bank maintained different types of accounts on
the request of clients. Such as:
2.
Saving
Deposit (SB)
3.
Fixed
Deposit (FD)
4.
Short Term
Deposit (STD)

9. Bills & Clearing Section
This section receives all kinds of Cheques in the favor of the client as the part of
their banking service.
 Inward clearing
 Cheques received from the Clearing House, of our bank.
 Outward clearing
 These cheques are directly sent to the respective branch and request them to send
IBCA, than customer’s accounts are credited for the amount of the cheque.
 Inward bills for Collection (IBC)

10. Remittance Section
Payment Order
(PO)
Demand Draft
(DD)
Money
Transfer
Local
Remittance
Telegraphic
Transfer (TT)

11. 01
Cash Payment
Cash Section
02 Cash Receipt
Functions of Cash Department
 Cash payment is made only against
check
 This is the unique function of the
banking system which is known as
payment on demand
 It receives deposits from the
depositors in form of cash
 So it is the mobilization unit of
the banking system

12. GENERAL BANKING ACTIVITIES OF
AIBL BANK
Al-Arafah Islami Bank Limited (AIBL) is an Islami Shariah Based Private
Commercial Bank. In AIBL the following departments are under general
banking section:
Clearing section
Account opening section
Remittance section
Cash section

13. A customer can open different types of accounts through this department.
Such as:
Account Opening Section
a. Al –Wadiah (Current Deposit) account.
b. Mudaraba Savings (SB) Deposit account.
c. Mudaraba Term Deposit Account (MTDR)
d. Mudaraba Special Notice Account (MSNA)
e. Mudaraba Hajj Savings Account (MHSA)
f. Mudaraba Monthly Profit Deposit Account (MMPDA)
g. Mudaraba Muhor Savings Account (MMSA), and more.

14. Cash Section
The most vital and important section of the branch is Cash
Department. It deals with all kinds of cash transactions.
● There is an important clause and duty practiced by the branch
is to refund the principal amount that exceeds more than Tk. 1
crore at the principle branch of the bank.

15. Remittance Section
To pay or receive money of customers in the form of remittance
from one place to another, from one person to another inside and
outside the national boundary is an earning source of every bank.
Panthapath Branch, Al-Arafah Islami Bank Ltd. operates
both the foreign and local remittance to serve its
customers.

16. Cheque clearing section of Al-Arafah Islami Bank Ltd. receives cheque, demand
drafts and pay orders of their clients. Upon the receipt of the instrument the
cheque clearing section examines three types of payment modules.
Cheque Clearing Section
CCS

17. COMPARISON BETWEEN AIBL
& IFIC BANK
AIBL & IFIC Bank will be financially compared on
the basis of the following points:
 Total Capital
 Total Assets
 Total Deposits
 Return on Equity (ROE)
 Return on Assets (ROA)
 Earnings per share

18. Total Capital
In case of total capital, International Finance Investment and
Commerce Bank Limited is in better position than AIBL in the last
three years.
0
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
50,000,000,000
60,000,000,000
2020 2019 2018
IFIC
AIBL

19. Total Assets
AIBL Bank has more total asset
than IFIC Bank in the past
three years which makes it
more financially sound bank.
0
50,000,000,000
100,000,000,000
150,000,000,000
200,000,000,000
250,000,000,000
300,000,000,000
350,000,000,000
400,000,000,000
450,000,000,000
2020 2019 2018
AIBL
IFIC

20. In 2020, IFIC Bank holds
more deposits rather than
AIBL Bank which helps it
to be financially stronger.
Total Deposits
0
50,000,000,000
100,000,000,000
150,000,000,000
200,000,000,000
250,000,000,000
300,000,000,000
2020 2019 2018
AIBL
IFIC

21. AIBL was holding better ROA than
IFIC Bank in 2020. It indicates that
AIBL Bank improves and retains
their ROA over time. It makes them
better company.
Return on Assets (ROA)
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
0.80%
0.90%
1.00%
2020 2019 2018
AIBL
IFIC

22. IFIC Bank is doing good
than AIBL Bank in case of
Return on Equity (ROE).
Return on Equity (ROE)
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2020 2019 2018
IFIC
AIBL

23. Earnings Per Share (EPS)
In account of EPS, IFIC Bank is in better position than AIBL Bank.
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
2020 2019 2018
IFIC
AIBL

24. CONCLUSION
 AIBL & IFIC Bank make significant contribution to the economy and performing
their activities, as a result not only the bank but also the economy is benefited.
 Although they have some limitations in their services. If they can reduce their
limitation and introduce new ideas, they can do better in the banking sector of
Bangladesh.

25. CONT…
Comparing these two banks is not a easy task. They have their own system.
 But when it comes with Total
Capital, Return on Equity, and
Earning per Share, IFIC Bank is
holding much better than AIBL
Bank which proves of having
better portability.
 AIBL Bank follows Islamic Banking.
 AIBL Bank is in way better position in
case of Total assets, Total deposits,
and Return on Assets (ROA).

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