Islamic banking vs. conventional banking: a comparative study on Exim Bank Ltd & Dutch Bangla Bank Ltd.

Abstract

A Bank is an economic institution whose main aim is to earn profit through exchange of money& credit instruments. It is a service oriented as well as profits oriented organization. The Bank divides its operation mainly three parts- General Banking, Foreign Exchange and Investment. The banking sector of Bangladesh is passing through a tremendous reform under the economic deregulation and opening up the economy. Currently this sector is becoming extremely competitive with the arrival of multinational banks as well as emerging and technological infrastructure, effective credit management, higher performance level and utmost customer satisfaction. Bank has a significant role in the economic development of the country. The successful banking business ensures the growth of the economy by the effective uses of the funds. In order to developing the national economy, banks keep in mind going for lending, maintaining safety, liquidity & profitability. The internship report has been prepared on “focusing whole Activities of Exim Bank Limited to compare with the activities of DBBL whereas Exim bank is serving as an Islamic bank and DBBL is based on traditional banking. Exim Bank Limited was introduced in Bangladesh as a banking company under the Company Act 1913(Indian) and 1994 in Bangladesh. It commenced on operation on 2nd June 1999. Numerically it is just another commercial Bank, one of now operating in Bangladesh, but the finders committed to make different & a little bit special qualitatively. This bank has new vision to fulfill & a new goal to achieve & try to reach new height for realizing its dream. I have done this report on the overall banking activities but mainly focusing on the differences between Islamic banking and conventional banking in comparing Exim bank with Dutch Bangla Bank Ltd. These are basically included general banking ,Investment and loan as well as foreign exchange to show how these departments work differently. The 1st chapter contains the origin, objectives, limitations etc. of the study, 2nd chapter is about the overview of EXIM Bank Ltd, 3rd chapter is about the overview of Dutch Bangla Bank Ltd, 4th chapter is focused on the difference of general banking section, chapter 5 is discussed about foreign banking and chapter 6 is discussed about investment banking of EXIM Bank and DBBL. At the end chapter 7 is all about the findings and conclusion of the report.