Professional Documents
Culture Documents
In the late seventies and early eighties, Muslim countries were awoken by the
emergence of Islami Bank which provided interest free banking facilities. There are
currently more than 300 interest free institutions all over the world. Islami Bank now
a days not only operate in almost all Muslim countries but have extended their wings
to the western world to serve both Muslim and non-Muslim customers. In case of
Islami Banking, the establishment of Mitghamar Local Savings Bank in 1963 is said
to be a milestone for modern Islami Banking. The history of Islami Banking can
nevertheless be traced back to the birth of Islam.
In 1974, Bangladesh signed the Charter of Islamic Development Bank and committed
itself to reorganize its economic and financial system as per Islamic Shari’ah (legal
framework of Islamic Ideology).
In 1981, President of the People’s Republic of Bangladesh addressed the 3rd Islamic
Summit Conference held at Makkah and Taif suggested, ''The Islamic countries
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should develop a separate banking system of their own in order to facilitate their trade
and commerce.''
In 1982, IDB visited Bangladesh for study. They found contributions done by Islamic
Economics Research Bureau (IERB) and Bangladesh Islamic Bankers Association
(BIBA); they mobilized the seminars, public opinion through symposia & workshop.
Professional activities reinforced by Muslim Businessman Society (now reorganized
as Industrialists and Businessman Association). The body mobilized mainly equity
capital for emerging Islamic Bank. Finally, in 1983 Islami Bank Bangladesh Limited
(IBBL) came out to take the challenge of doing banking business.
Islami Bank Bangladesh Limited (IBBL) is considered to be the first interest free
bank in Southeast Asia. It was incorporated on 13-03-1983 as a Public Company with
limited liability under the companies Act 1913. The bank began operations on March
30, 1983, with major share by the foreign entrepreneurs. IBBL is a joint venture
multinational Bank with 66.12% of equity being contributed by the Islamic
Development Bank and financial institutions. The total number of branches 286. Now
the authorized capital of the bank is Tk. 20,000 million.
Islamic bank is a financial institution whose status, rules and procedures expressly
state its commitment to the principle of Islamic Shari’ah and to the banning of the
receipt and payment of interest on any of its operations. -OIC
Ziauddin Ahmed says, “Islamic bank is essentially a normative concept and could
be defined as conduct of banking in consonance with the ethos of the value
system of Islam.”
It appears from the above definitions that Islamic bank is systems of financial
intermediation that avoids receipt and payment of interest in its transactions and
conducts its operations in a way that it helps achieve the objectives of an Islamic
economy. Alternatively, this is a banking system whose operation is based on Islamic
principles of transactions of which profit and loss sharing (PLS) is a major feature,
ensuring justice and equity in the economy. That is why Islamic bank is often known
as PLS-banks.
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2.3 Vision
Our goal is to establish and maintain the modern banking techniques, to ensure
the soundness and development of the financial system based on Islamic
principles and to become the strong and efficient organization with highly
motivated professionals, working for the benefit of people, based upon
accountability, transparency and integrity in order to ensure stability of
financial systems.
We will try to encourage savings in the form of direct investment.
We will also try to encourage investment particularly in projects which are
more likely to lead to higher employment.
2.4 Mission
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2.6 Strategic Objectives
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2.7 Corporate Information (As per Islami Bank Bangladesh Ltd.
Corporate office :
Motto :
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2.8 Products & Services
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Mudaraba Education Savings Scheme
Mudaraba Expatriate Housing Deposit Scheme (MEHDS)
Investment Products
Bai-Murabaha
Bai-Muajjal
Bai-Istijrar
Bai-Salam
Bai-Salam (Pre-shipment)
Bai-Istisna Mudaraba
Musharaka
Musharaka Documentary Bill (MDB) Inland
Musharaka Documentary Bill (MDB) in Foreign Currency
Musharaka Investment in Potato Storage
Hire Purchase under Shirkatul Melk (HPSM)
Murabaha Post Import (MPI)
Murabaha Import Bills (MIB)
Murabaha Import LC
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Murabaha Foreign Currency Investment (MFCI) under EDF
Murabaha Foreign Currency Investment (MFCI) under Balance of MFCD A/C
Bai-Muajjal Back to Back Bills
Bai-as-Sarf (Foreign Documentary Bill: FDB)
Bai-as-Sarf (Foreign Currency Cheques/Drafts: FCD)
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Deposit Products
Al Wadiah Foreign Currency Account (AWFCA).
Mudaraba Foreign Currency Deposit Account (MFCDA).
Mudaraba Foreign Currency Term Deposit Receipt Account (MFCTDRA)
Remittance Services
Central Crediting Account
Issue cheque book centrally for expatriate.
Payment of 3rd Bank Remittance through BFTN.
Payment of Spot Cash Remittances Centrally NRB Accounts Opening
SMS Notification SMS Push Pull Service
Maintaining NRD & NRT Account
Agent-Banking remittance payment
Remittance Card
SWIFT msg. payment
API service.
Travel purpose
Study purpose/Student File
Medical purpose
Issuance of Foreign TT & DD (FTT & FDD)
Selling/Issuance of Foreign Currency note
Commercial Remittance
Different Private Remittance
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2.8.9 Treasury Activities
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Khidmah Credit Card
Hajj Card
Travel Card
Business Expenses Card
i-PaySafe: e-Commerce Payment Gateway
IBBL Mobile Banking: mCash
Cellfin Services
Payment Order (PO)
Demand Draft (DD)
Locker Service
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Quard against TDR/MSS/MMPDS/MSB/ MNSB
IBBL Web Portal (i-Banking)
Letter of Credit
Back to Back Letter of Credit
Bank Guarantee Foreign Bank Guarantee
Export Bills Collection
Bonded Warehouse facilities to exporters
Duty Draw Back facilities to exporters
Substitute Cash Assistance
SWIFT
Automated Clearing
IBBL Contact Center
Agent Banking Services
Phone Banking/SMS Banking
Point of Sale (POS)
IBBL iSmart (Android Apps)
Payroll Software
Dissemination of information through Web-site EFT
Foreign Currency endorsement
School Fees Payment Services
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Islami Bank Mohila Madrasah
Bangladesh Cultural Centre
Distressed Women Rehabilitation Centre
2.9 Milestone
2021-Present
2016-20
Launching Internet
Opening of 500th Own
Banking app (iSmart):
ATM Booth: 18.10.2016
30.03.2016
2011-15
10 Million Deposit
Launching of Credit Card
Account: 16.04.2014
(Khidmah): 27.05.2014
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Entered into the World’s
Deposit crosses Tk. Top 1,000 Banks’ list:
5,00,000 million:
2012
Introduction of Deposit
Machine (IDM):
11.10.2012
Launching of Offshore
Banking Unit:
2003-10 04.01.2011
Formation of Islami
Formation of Islami
Bank Capital Bank Securities Limited
Management Limited: (IBSL): 22.03.2010
01.04.2010
1995-2000
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Shari’ah Supervisory
Committee
Review Committee
Board of Directors
Chairman
Managing
Director
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Strengths
1. Adequate finance: Islami Bank Bangladesh Ltd. has adequate finance. That is
why; they need not to borrow money from Bangladesh Bang or any other.
2. More funds for investment: For adequate financial ability, they can provide
more investment facility to their rather than other Banks.
3. Honest and reliable employees: All of the employees of Islami Bank are
honest and reliable. They are always devoted themselves to the clients for
better customer.
4. Religious feelings of the people: Most of the people of Bangladesh are
Muslim and they are trusted in superior performance of IBBL as a Sariah
based-Islamic Banking.
Weaknesses
1. Lake of adequate employees: Islami Bank Bangladesh Ltd. has very limited
human resources compared to its financial activities.
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2. Lake of up-to-date equipment: IBBL has lack of modern technologies and
equipment like adequate online facilities as well as cash card and credit card
system.
3. Deficiency of expertise: Many of the employees are unskilled and from them,
superior performance is unexpected to survive in the national economy as
well as in the world economy.
4. Lake of advertising: IBBl has lack of aggressive advertising like other banks.
They don’t telecast any attractive advertise in the media.
5. Centralized decision making: The decision making of the bank is too many
centralized. No decision is made without the authorization of the head office.
Opportunities
1. Innovative and modern customer service: This bank can introduce more
innovative and modern customer services to its customers to survive better in
the competition market.
2. Retaining vast customer: IBBL has a vast opportunity to hold most of the
customers by extending its banking operation all over the country as most of
the people of Bangladesh are religious minded.
3. Poverty alleviation: IBBL has a great opportunity to save the county’s poor
people from being taking loan from different NGOs or few banks with higher
interest rate.
4. Special Image: IBBL has created special image to the people as a more
reliable bank. People believe that if they keep their money in Islami bank it
will be more secured than other banks.
Threats
1. Rules and regulation: Rules and regulation of Bangladesh Bank defers with
Islami banking system. So they have to face various problems to operate their
activities according to the Islamic Shari’ah.
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2. Lower salary structure: Now many of the Banks are hiring young talent and
expertise employees with higher remuneration where IBBL could not hire
skilled manpower because of lower salary structure compared to other banks.
3. Islami banking system introduced by conventional banking: Few other
conventional banks have opened their Islamic Banking Branch.
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