Islami Bank Bangladesh Limited

Islami Bank Bangladesh Limited (IBBL) the first interest-free Islamic Shariah based bank in Bangladesh incorporated on 13 March 1983 as a public limited company under the Companies Act 1913. The bank obtained license from bangladesh bank on 28 March 1983 and started banking operations on 30 March 1983 through its main branch at Dhaka, which was formally inaugurated later, on 12 August 1983. The bank is a joint-venture enterprise of 22 private sponsors of Bangladesh, the government of Bangladesh, Islamic Development Bank, and 13 banks and financial institutions of the Middle Eastern Muslim countries.

Foreign sponsors as the Islamic Development Bank (IDB) and some other financial institutions own 59.58% shares, while 40.42% shares are owned by local sponsors and the general public. On 31 December 2009 the amount of the authorised and paid-up capital and reserve fund stood at Tk 10000 million, Tk 6178 million and Tk 13928 million respectively. The bank is listed with both Dhaka and Chittagong Stock Exchange.

Table  Basic facts and economic indicators (in million Taka)

Indicators	2004	2005	2006	2007	2008	2009
Authorised Capital	3000	5000	5000	5000	10000	10000
Paid Up Capital	2304	2765	3456	3802	4752	6178
Reserved Fund	4522	5451	6551	7418	9308	13928
Deposits	87721	107788	132419	166325	200343	244292
a) Call Deposits	9578	17454	17731	24225	27642	30492
b) Term Deposits	78143	90334	144688	142100	172701	213800
Loans And Advance	76826	93644	113575	144921	191230	173096
Investment	3536	3534	3558	20366	7533	11137
Total Asset	102128	122880	150253	191362	230879	278302
Total Income	8400	10587	14038	17699	24230	25404
Total Expenditure	7175	8424	11130	13918	17396	18886
Foreign Currency Trading	112624	147642	201822	229503	402695	462370
a) Export	29151	36169	51133	59097	93962	106424
b) Import	59804	74525	96870	103293	168329	161230
c) Remittance	23669	36948	53819	67113	140404	194716
Total Manpower	4261	5884	7133	8083	9397	9588
a) Officers	3327	4854	5894	6711	5341	5930
b) Staff	934	1030	1239	1372	4056	3658
Correspondent Banks	235	240	240	884	906	919
Total Branches (In Numbers)	151	169	176	186	196	231
a) Domestic	151	169	176	186	196	231
b) Overseas	-	-	-			-
Agriculture Credit
a) Loan Disbursed	18	17	19	23	30	3106
b) Realised	9	7	10	13	20	1889
Industrial Credit
a) Loan Disbursed	32153	46799	57065	74489	100545	152028
b) Realsied	36812	52039	41702	59400	81127	120809
Loan Outstanding By Sector
a) Agriculture And Fisheries	1901	2134	3412	3427	3097	3238
b) Industry	17095	46064	27936	28203	53511	49088
c) Trade And Commerce	27934	29874	31807	69568	61887	7476
d) Poverty Reduction	2704	1106	2242	2301	3012	2050

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.

IBBL conducts businesses on the principles of Mudaraba, Musharaka, Hire Purchase (under Shirkatul Meelk), Bai-Murabaha, Bai-Muajjl and Bai-Salam. The bank also provides all other commercial banking services to the customers observing the provisions of the Bank Company Act 1991, Bangladesh Bank's directives and the principles of Islamic Shariah. Deposit-mix included Mudaraba savings deposits, Mudaraba special notice deposits, Mudaraba term deposits ranging from 6 months to 36 months, Mudaraba Hajj savings deposits, Mudaraba special savings (pension) deposits and Mudaraba savings bond of 5 and 8 years.

A 23-member board of directors oversees the aggregate business affairs of the bank. The executive president is its chief executive officer. In December 2009, the bank had 196 branches and a total of 9,397 employees including 5341 officers. There is a 10-member Shariah Council for the bank to ensure the compliance of Islamic rules in all spheres of its banking and financial activities. The investments (lending) of the bank are partnerships, profit sharing, capital in affiliated projects, real estates, housing, transport, agriculture, export-imports, trade and commerce and other economic activities.

According to CAMEL (Capital, Assets, Management, Earnings and Liquidity) rating made by the Bangladesh Bank the bank holds the highest amount of liquidity. The Global Finance, a reputed London based quarterly magazine awarded IBBL as the best bank of the country for the year 1999 and 2000. IBBL has got the 2nd prize of National Export Fare for its pavilion of Service Organisation in 1985. [Muhammad Abdul Mazid]