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)
|Paid Up Capital||2304||2765||3456||3802||4752||6178|
|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|
|Foreign Currency Trading||112624||147642||201822||229503||402695||462370|
|Total Branches (In Numbers)||151||169||176||186||196||231|
|a) Loan Disbursed||18||17||19||23||30||3106|
|a) Loan Disbursed||32153||46799||57065||74489||100545||152028|
|Loan Outstanding By Sector|
|a) Agriculture And Fisheries||1901||2134||3412||3427||3097||3238|
|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]