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Social Islami Bank Limited


Social Islami Bank Limited (SIBL) an interest free shariah-based islami bank in Bangladesh. It commenced banking activities on 22 November 1995 under the Companies Act 1994. The founding initiators of the bank were Dr Hamid Ali (former general secretary of OIC), Dr Omar Nasif (former general secretary of RABETA and deputy speaker of Saudi Arabia), Saleh Jamjum (former Commerce Minister of Saudi Arabia), Islami International Fund (IIF) and International Islami Relief Foundation (IIRO).

Basic facts and economic indicators (in million Taka).

Indicators 2004 2005 2006 2007 2008 2009
Authorised capital 1000 4000 4000 4000 4000 4000
Paid up capital 585 585 585 585 1119 2692
Reserved Fund 331 338 396 992 659 841
Deposits 19704 16862 16171 18176 22688 31588
(a) Call Deposits 1967 2177 2077 4060 4814 7178
(b) Term Deposits 17737 14685 14094 14116 17874 24411
Loans and Advance 12888 15097 15313 15869 18725 24938
Investment .062 501 501 501 922 1311
Total Asset 21547 20359 19692 21920 29262 39979
Total income 3273 1922 2229 1194 1611 3817
Total Expenditure 2858 1709 1933 972 1190 2715
Foreign Currency Trading 18088 17438 23280 26373 27024 34888
a) Export 4500 5528 10714 11741 8696 13964
b) Import 13363 11577 11791 13977 17286 18287
c) Remittance 225 333 775 655 1042 2637
Total Manpower: 651 686 674 669 694 965
a) Officers 581 615 602 597 618 882
b) Staff 70 71 72 72 76 83
Correspondents Banks 3575 3575 2366 2480 2200 1800
Total Branches (in numbers) 24 24 24 24 28 42
a) Domestic 24 24 24 24 28 42
b) Overseas - - - - - -
Agriculture Credit
Loan Disbursed 1518 1518 - 273 777 913
Realised 1253 1253 - 99 292 376
Industrial Credit
Loan Disbursed 48790 48790 1334 1132 10149 14790
Realsied 26702 26702 1177 906 4027 5424
Loan Outstanding by Sector
Agriculture and Fisheries 67 135 366 466 543 518
Industry 627 1940 1591 1751 2168 4220
Trade and Commerce 8129 7925 7945 7874 9778 11985
Poverty Reduction 52 117 1453 231 280 305

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.

A 27-member board of directors headed by a chairman approves business policy, supervise administration and management of the bank. There is a 5-member Shariah Council of the bank to ensure the compliance of Islamic rules in its activities. Besides a foreign honorary international advisor council is consist of 13 members provides direction and adviser the bank on international banking business affairs.

From its inception, the bank is operating its function in three sectors - formal, non-formal and voluntary. In the formal corporate sector, the bank offers banking services through deposit and investment accounts, trade financing, collection of bills, money transfers, lease of equipment and consumers' durable, investment in low-cost housing and real estate management, and financing projects in agriculture, transport, education and health sectors. In the non-formal corporate sector, the bank has been offering microcredit and SME loan with easy condition. Such programmes play a significant role to achieve Millennium Development Goals (MDGs) of the United Nations and poverty reduction strategy paper (PRSP) of the government. Under the ILO project since 2001 the bank is operating two programmes with the assistance of Italy and Norway government and for improving the child labour, the bank and UNICEF jointly conducting micro investment programme from 2003. With the associate of USAID-JOBS the bank provides investment support in the pineapple farming and marketing project for the socio-economic development of pineapple farmers in Madhupur.

In the voluntary sector, Social Islami Bank starts 'Cash Waqf Certificate' scheme as the process to form the social capital. The capital of cash waqf has been deposited permanently in the bank. Only the profit of that amount consumes in different social welfare activities like family rehabilitation, education, health, and social utilities on the basis of Islamic sharia. Moreover, the bank helps paralysed people through CRP, provides spectacles and removed the cataract of poor people by a surgical operation through sight savers, established a child-friendly ward in the Bangladesh National Blind Welfare Samity Hospital, provide treatment of eye-damaged poor people through Fashion Eye Hospital and provide scholarship, books, shoes, school bag to the poor but meritorious students of different schools. Provide financial aid to the voluntary institutions, different social welfare institutions engaged with handicapped people, Bangladesh Cancer Foundation Hospital and Kidney Foundation.

As a part of modern banking system, it provides online banking services with other islami banks through first banking institution, SIBL makes a bridge between non-formal and formal sectors through offering investment facilities doing the upgradation of SME entrepreneurs. [Muhammad Abdul Mazid]