Al-Arafah Islami Bank Limited

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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 21-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 2018 2019 2020
Authorized Capital 15000 15000 15000
Paid up Capital 10440 10640 10649
Reserved Fund 8380 9422 11640
Deposits 284854 324009 346759
(a) Call Deposits 23857 260977 36632
(b) Term Deposits 27351 296658 310127
Loans and Advances 265132 292597 309762
Investment 11367 15336 20717
Total Asset 333261 376601 411636
Total Income 28257 32465 29661
Total Expenditure 22045 24663 23000
Foreign Currency Trading 319971 318291 318124
a) Export 114481 108967 104939
b) Import 168573 171611 169378
c) Remittance 36917 37713 43807
Total manpower 3682 3795 3984
a) Officers 261 301 296
b) Staff 3421 3494 3688
Correspondent Banks 332 335 344
Total Branches (in numbers) 168 184 184
a) Domestic 168 184 184
b) Overseas 0 0 0
Agriculture Credit
Loan Disbursed 1526 3825 3920
Realised 1420 1521 1222
Industrial Credit
Loan Disbursed 19780 29875 31321
Realsied 16340 23335 26785
Loan Outstanding by Sector
Agriculture and Fisheries and Forestry 2800 5104 7802
Industry 120756 144623 149385
Trade and Commerce 91785 57551 65329
Poverty Reduction 126 165 170
CSR 122 79 284

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.

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. [Muhammad Abdul Mazid]