Al-Arafah Islami Bank Limited
'Al-Arafah Islami Bank Limited' an interest-free Islamic Shariah Bank, started its activities on 27 September 1995. A Shariah Council of the bank maintains constant vigilance to ensure that the activities of the bank are being conducted according to the precepts of Islam. The bank renders banking services under the Bank Companies Act 1991. The management of the bank is vested in a 13-member board of directors. The managing director of the bank is its chief executive officer. The registered head office of the bank is at Motijheel, Dhaka.
Basic Facts and Economic Indicators (In Million Taka).
Indicators
2004
2005
2006
2007
2008
2009 Authorized Capital
1000
1000
2500
2500
2500
5000 Paid up Capital
587
678
854
1153
1384
1799 Reserved Fund
488
542
836
884
839
2299 Deposits
10108
11644
16775
23009
31470
38355 a) Call Deposits
4811
2539
2979
2266
3460
4589 b) Term Deposits
5297
9105
13796
20743
28010
33766 Loans and Advance
8150
11474
17423
19214
29723
36134 Investment
-
-
-
87
88
1502 Total Asset
12850
15337
21368
30182
39158
50577 Total Income
1121
1453
2172
2955
4414
5281 Total Expenditure
809
904
1203
2199
2841
3532 Foreign Currency Trading
13068
18019
28865
41599
55533
60452 a) Export
3639
4931
9143
12714
20176
23556 b) Import
9137
12632
18821
27042
32685
34074 c) Remittance
292
465
901
1843
2672
2832 Total Manpower
802
771
912
1036
1077
1296 a) Officers
723
45
866
957
994
1197 b) Staff
79
726
46
79
83
99 Correspondent Banks
-
15
15
17
17
19 Total Branches (in numbers)
40
41
46
46
50
60 a) Domestic
40
41
46
46
50
60 b) Overseas
-
-
-
-
-
- Agriculture Credit a) Loan Disbursed
8
13
15
19
16
21 b) realised
9
10
14
18
13
17 Industrial Credit a) Loan Disbursed
550
699
2180
2171
1654
2134 b) Realsied
792
474
1242
1233
1032
1332 Loan Outstanding by Sector a) Agriculture and Fisheries
1
3
2
16
353
588 b) Industry
384
851
785
2000
5116
13884 c) Trade and Commerce
6251
7502
1012
12320
16612
13425 d) Poverty Reduction
4
10
23
54
10
16 Source Government of Bangladesh, Ministry of Finance, Banking and Financial Institution Division, Bank o Arthik Prothisthan Samuher Karjaboli [Annual Report on Banks and Financial Institutions], 2004-05 to 2009-10. Al-Arafah Islami Bank invests all of its surplus funds on the basis of the trade mode of financing ensuring buying and selling of halal commodities and on a profit and loss sharing basis. A fixed percentage of income derived from investment of mudaraba deposits is distributed to the mudaraba deposit holders. The investment of the bank is supervised strictly so that no investment becomes overdue with consequential loss of investment income. Its modes of investments are: (a) mudaraba finance - purchase and sale of commodities as per requests by clients permissible under shariah regulations; (b) bai-muajjal - cost plus sale of the commodity on deferred payment basis against adequate collateral; (c) bai-salam (advance sale) - buying of goods from producers/suppliers on payment in advance after entering into a firm contract and receipt of their delivery at a future specified date; (d) ijara bil-bai (hire purchase Shirkatul Meelk) - purchase of durable items on equity participation by both the bank and the client and handing them over to the client on installment sale rental basis; (e) mudaraba - entire capital provided by the bank against firm assurance of the entrepreneur that he will manage the business properly and efficiently as manager and the profits derived from the investment will be shared in accordance with the agreement between the bank and the client; and (f) musharaka - capital is provided by the bank and the investment client on the basis of partnership, in which profit is shared in agreed ratio and the loss is shared on equity ratio. The Bank in performing its social and philanthropic activities, has established AIBL English Medium Madrasah and AIBL Library in 1991. [Muhammad Abdul Mazid] [Mazid, Muhammad Abdul former Secretary, Government of Bangladesh]
