Social Islami Bank Limited
Social Islami Bank Limited (SIBL) an interest free shariah-based islami bank in Bangladesh. It commenced banking activities on 22 November 1995 under the Companies Act 1994. The founding initiators of the bank were Dr Hamid Ali (former general secretary of OIC), Dr Omar Nasif (former general secretary of RABETA and deputy speaker of Saudi Arabia), Saleh Jamjum (former Commerce Minister of Saudi Arabia), Islami International Fund (IIF) and International Islami Relief Foundation (IIRO).
Basic Facts and Economic Indicators (In Million Taka)
| Indicators | 2018 | 2019 | 2020 |
| Authorized Capital | 10000 | 10000 | 30000 |
| Paid up Capital | 8121 | 8933 | 9380 |
| Reserved Fund | 8155 | 9388 | 8985 |
| Deposits | 248314 | 288066 | 322385 |
| a) Call Deposits | 24984 | 43368 | 32278 |
| b) Term Deposits | 223331 | 244698 | 290107 |
| Loans and Advances | 238654 | 264269 | 300618 |
| Investment | 13087 | 19119 | 18487 |
| Total Asset | 307305 | 345056 | 384957 |
| Total Income | 27776 | 30711 | 29850 |
| Total Expenditure | 21972 | 24369 | 25507 |
| Foreign Currency Trading | 178580 | 159582 | 141287 |
| a) Export | 63060 | 60079 | 51145 |
| b) Import | 93000 | 88911 | 76967 |
| c) Remittance | 22520 | 10592 | 13176 |
| Total manpower | 2843 | 2958 | 3100 |
| a) Officers | 2615 | 2737 | 2875 |
| b) Staff | 228 | 221 | 225 |
| Correspondent Banks | 389 | 385 | 395 |
| Total Branches (in numbers) | 155 | 161 | 168 |
| a) Domestic | 155 | 161 | 168 |
| b) Overseas | 0 | 0 | 0 |
| Agriculture Credit | |||
| Loan Disbursed | 4638 | 3998 | 2890 |
| Realised | 4878 | 4105 | 2973 |
| Industrial Credit | |||
| Loan Disbursed | 99195 | 81961 | 68251 |
| Realsied | 104077 | 78085 | 60603 |
| Loan Outstanding by Sector | |||
| Agriculture and Fisheries and Forestry | 2280 | 2277 | 2386 |
| Industry | 49963 | 61891 | 73397 |
| Trade and Commerce | 78146 | 91229 | 101933 |
| Poverty Reduction | 81 | 258 | 485 |
| CSR | 155 | 297 | 271.8 |
Source Government of Bangladesh, Ministry of Finance, Banking and Financial Institution Division, Barshik Protibedon [Annual Report on Banks and Financial Institutions], 2019-20 and 2020-21.
A 13-member board of directors headed by a chairman approves business policy, supervise administration and management of the bank. There is a 5-member Shariah Council of the bank to ensure the compliance of Islamic rules in its activities. Besides a foreign honorary international advisory council is consist of 13 members provides direction and adviser the bank on international banking business affairs.
From its inception, the bank is operating its function in three sectors - formal, non-formal and voluntary. In the formal corporate sector, the bank offers banking services through deposit and investment accounts, trade financing, collection of bills, money transfers, lease of equipment and consumers' durable, investment in low-cost housing and real estate management, and financing projects in agriculture, transport, education and health sectors. In the non-formal corporate sector, the bank has been offering microand SME loan with easy condition. Such programmes play a significant role to achieve Millennium Development Goals (MDGs) of the United Nations and poverty reduction strategy paper (PRSP) of the government. Under the ILO project since 2001 the bank is operating two programmes with the assistance of Italy and Norway government and for improving the child labour, the bank and UNICEF jointly conducting micro investment programme from 2003. With the associate of USAID-JOBS the bank provides investment support in the pineapple farming and marketing project for the socio-economic development of pineapple farmers in Madhupur.
In the voluntary sector, Social Islami Bank starts 'Cash Waqf Certificate' scheme as the process to form the social capital. The capital of cash waqf has been deposited permanently in the bank. Only the profit of that amount consumes in different social welfare activities like family rehabilitation, education, health, and social utilities on the basis of Islamic sharia. Moreover, the bank helps paralysed people through CRP, provides spectacles and removed the cataract of poor people by a surgical operation through sight savers, established a child-friendly ward in the Bangladesh National Blind Welfare Samity Hospital, provide treatment of eye-damaged poor people through Fashion Eye Hospital and provide scholarship, books, shoes, school bag to the poor but meritorious students of different schools. Provide financial aid to the voluntary institutions, different social welfare institutions engaged with handicapped people, Bangladesh Cancer Foundation Hospital and Kidney Foundation.
As a part of modern banking system, it provides online banking services with other Islami banks through first banking institution, SIBL makes a bridge between non-formal and formal sectors through offering investment facilities doing the upgradation of SME entrepreneurs. In 2019, bank deposits accounted for 1.6 per cent of total banking sector deposits and loans and advances accounted for1.8 per cent of total banking sector loans and advances. The average interest rate differential between June 2019 based deposits and loans and advances was 4.2 percent. [Muhammad Abdul Mazid]
