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First Security Islami Bank Limited


First Security Islami Bank Limited incorporated as a commercial bank on 29 August 1999 and received permission to conduct banking business from the bangladesh bank on 22 September 1999. It started banking operations on 25 October 1999 with an authorised capital of Tk 1 billion divided into 10 million ordinary shares of Tk 100 each. The paid up capital was Tk 400 million, of which the sponsor directors and the sponsor shareholders paid Tk 200 million. The rest are on offer to the general public.

The three innovative schemes introduced by the bank are the Monthly Savings Scheme, Monthly Benefit Savings Scheme and Advance Savings Scheme. The bank had no borrowings from other banks and financial institutions so far.

Table  Basic Facts And Economic Indicators  (In Million Taka).

Indicators 2004 2005 2006 2007 2008 2009
Authorised capital 1000 1500 1500 3600 4600 4600
Paid up capital 320 600 900 1000 2300 2300
Reserved Fund 211 221 104 134 239 569
Deposits 11232 14012 17592 23504 25855 42423
(a) Demand Deposits 906 763 848 1439 1423 2569
(b) Term Deposits 10326 13249 16744 22065 24432 39854
Loans and Advance 8500 10722 13646 18616 25095 38726
Investment 1272 1662 2063 2498 1333 1931
Total Asset 16169 20260 20449 26942 31,239 47979
Total income 1815 2019 1921 2545 5858 8282
Total Expenditure 1431 1894 1718 2416 5668 7516
Foreign Currency Trading 11098 9523 10162 18322 14238 20209
a) Export 3651 2856 2961 3648 4145 3549
b) Import 7414 6605 7153 14344 9287 16102
c) Remittance 33 62 48 330 806 558
Total Manpower: 467 423 415 514 623 995
a) Officers 337 313 318 408 483 775
b) Staff 130 110 97 106 140 220
Correspondent Banks 253 260 262 245 235 240
Total Branches (in numbers) 12 12 15 20 29 52
a) Domestic 12 12 15 20 29 52
Agriculture Credit:
a) Loan Disbursed 93 168 108 160 164 224
b) Realised 5 2 10 5 10 14
Industrial Credit:
a) Loan Disbursed 711 474 388 440 1286 2094
b) Realsied 72 302 16 20 26 72
Loan Outstanding by Sector
a) Agriculture and Fisheries 93 168 108 160 164 224
b) Industry 711 474 388 890 989 1452
c) Trade and Commerce 1756 4073 3352 5600 6940 22469
d) Poverty Reduction 400 420 415 594 630 670

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 2008-09.

Most of its loans and advances were provided as house building loan, secured overdraft, staff loan and inland bills purchased. Investments of the bank other than loans and advances are in government treasury bills and prize bonds.

Since 1 January 2009, the bank introduced banking based on Sharia rather than conventional banking. The volume of foreign exchange business of the bank was confined in the area of export servicing, import financing and remittances. The bank has correspondent relationships with 240 foreign banks and other financial institutions.

The management of the bank is vested in a 19-member board of directors with the managing director as the chief executive. The bank has 53 branches and 995 employees including the executive officer. [Muhammad Abdul Mazid]