Internship Report on Loans and Advances of First Security Islami Bank PLC-A Study at Birulia Branch

Abstract

The internship program is an essential part of completing the Bachelor of Business Administration (BBA) degree at Daffodil International University. As part of this program, I had the opportunity to work at First Security Islami Bank PLC, which helped me gain practical knowledge and professional experience. First Security Islami Bank PLC is a scheduled private commercial bank established under the Bank Company Act 1991 and incorporated as a Public Limited Company on 2nd June 1999. The bank operates under Shariah principles and provides a wide range of services including deposit banking, loans and advances, foreign exchange, export-import financing, and both national and international remittance facilities. This report is divided into several parts. The first part covers the background, objectives, importance, and methodology of the report. The second part gives a brief introduction of First Security Islami Bank PLC, including its organizational overview, mission, vision, values, products, and services. The third part focuses on the Loans and Advances Analysis, which is the core earning segment of First Security Islami Bank PLC. This includes: categories and types of loans and advances, analysis of the loan portfolio, loan-to-deposit ratio analysis, and NonPerforming Loan (NPL) trends from 2020–2023, based on the bank’s annual reports and branchlevel data. From the analysis, it was observed that First Security Islami Bank PLC’s Loans and Advances grew steadily until 2023, with an improvement in the NPL ratio. However, in 2024, the loan portfolio faced challenges as non-performing loans increased again, reflecting vulnerability to large borrower defaults. At the branch level, particularly in Birulia Branch, the portfolio is largely SME-focused, which contributes significantly to inclusive growth but also requires strong monitoring to minimize credit risk. Finally, some issues and challenges have been identified while analyzing the Loans and Advances. Based on these, certain recommendations and suggestions have been made so that First Security Islami Bank PLC can strengthen its loan management, improve recovery performance, and enhance overall financial stability. The report concludes with an evaluation of the bank’s performance and highlights areas for further improvement.