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]