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Topic:
IBBL Contribution in Agricultural Sector in Bangladesh
Outline
• Introduction
• Objective
• Target Group
• Nature of Goods / Items
• Mode of Investment
• Investment amount in Agriculture
• Contribution in developed of agriculture
• Recommendation
• Conclusion
Introduction:
• The establishment of Islami Bank Bangladesh Limited on March 13,
1983, is the true reflection of this inner urge of its people, which started
functioning with effect from March 30, 1983. This Bank is the first of its
kind in Southeast Asia.

• Islami Bank Bangladesh Limited has been contributing significantly in

the country’s agriculture sector.Since its inception, the bank has been
working for development of agricultural sector, which is the livelihood of
80 percent of people of the country directly or indirectly.
Objective:
• To extend the investment facility to the Share Cropper, Small &
Marginal farmers & underdeveloped caste of the society
• To achieve self-sufficiency in the food;
• To motivate the farmers to produce the most popular & high yielding
variety;
• To extend the investment facility to the multipurpose sector & sub
sector of Agriculture;
• To assist the farmers to use the modern technology in the Agriculture.
Target Group:

• Permanent resident of the

concerned area;
• Share Cropper;
• Small & Marginal Farmers;
• The person directly engaged in
Agriculture
Nature of Goods / Items:
• Three core sectors, which are Crops, Fisheries &
Livestock
• Power Tiller / Power pump / Deep / Shallow tube
well / Thresher machine / Combined
harvester / Tractor / Rice transplanted / USG
making Machine / Drum Seeder / Agro
processing machinery & equipment’s etc.

Mode of Investment:
Bai Murabaha, Bai Muazzal,
Mudaraba, Musharaka,
Bai Salam, HPSM
Period of Investment:
6 months to 5 years.

Rate of Return:
12.50%for Crop Cultivation
&
13.00% for others. 
Amount of Investment:
0.50 lac to 10.00 lac
Bank's Participation:
Depends on sector and investment nature.

Security:
Up to Tk. 1.00 lac (Personal Guarantee/ crop hypothecation) Collateral is required above
Tk. 1.0 lac.
Investment amount in Agriculture:
• Over the last 5 years the Bank
invested more than 60 billion
Taka in agriculture sector.

• Agriculture contributes 18.6% of

the country’s GDP. Islamic Bank
has been helping to increase
GDP rate by giving priority
investment in the agricultural • In 2015-16, Islam Bank has invested Tk
sector since inception. 13.07 billion in the agricultural sector,
which is 180 percent of the target.

• A total of Tk. 53.59 billion have been

distributed among 1,394 entrepreneurs
in the Agro-based industries.
Contribution in developed of agriculture

• IBBL trained two and a half million farmers on modern technology for the
cultivation.
• IBBL giving priority investment in agricultural marketing, agricultural support
industries and storaging of agro goods.
• IBBL contributing to achieve the country’s economic prosperity through
implementation of investment projects like Agricultural Implements Investment
Scheme, Rural Development Scheme (RDS) and Small Business Investment Scheme.
• IBBL Special investment are being given the import oriented and high-priced crops
sectors.
• IBBL in the priority sectors of the government including pulses, oilseeds, spices and
maize cultivation at grace profit rate.
 Recommendation:
• It is a modern banking era. So, IBBL needs to utilize
more modern technologies to keep pace with the
changing time.
• To fulfill the vision of mass banking IBBL should
grants investment portfolio to new entrepreneurs.
• IBBL have to promote its distributional efficiency
from all dimensions together with profitability.

• IBBL must give loan to rural farmer’s to change with

condition with low collateral.
•  IBBL should be flexible to the clients for the
investment sanction.
•  IBBL should analyze customer’s financial statement
and their management Capacity.
 Conclusion:
• Islam is a complete code of life where the detailed
regulation for maintaining a proper economic life is given.
IBBL is trying to establish the maximum welfare of the
society by maintaining the principles of Islamic Shariah
which is based on Quran and Sunnah.

• Islami Bank Bangladesh Ltd. is the pioneer of the welfare

activities in Bangladesh.

• Earning of profit is not the only motive and objective of

the Bank's Investment Policy rather emphasis is given in
attaining social goal and objective in creating employment
opportunities.
Thanks All