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PRESENTATION
OVERALL ACTIVITIES & PERFORMANCE
(IBBL)
OF
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ON
(BBA)
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SCHOOL OF BUSINESS
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MD.ZAIUL HOQUE
ID:08410007
WHAT IS ISLAMI BANK?
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According to the OIC the definition of Islami bank is- “An Islami
Bank is a financial institution whose status, rules and procedures
expressly state its commitment to the principle of Islamic Shariah
and to the banning of the receipt and payment of interest on any
of its operations.”
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Islami Bank Bangladesh Limited (IBBL) the first Shariah based Bank
in South-East Asia which was established in 1983 with a view to
provide banking services based on Islamic principles.
WHY ISLAMI BANK
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Islami bank is committed to try its best to do away with
disparity and establish justice in the economy, trade,
commerce and industry, build socio-economic infrastructure
and employment opportunities.
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The objective of Islami banking is not only to earn profit, but
to do good and welfare to the people. Islam upholds the
concept that money, income and property belong to Allah
and this wealth is to be used for the good of the society in
general and human being in particular.
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IBBL AT A GLANCE
Export
Remittance
Tk.12,774 crore
Tk.15,746 crore
Branches
Total number of Branches
Number of AD Branches
Number of Shareholders
Manpower
254
43
63001
11,033
30th March 1983
12th August 1983
41.77%
58.23%
Tk. 20,000.00 million
Tk. 10,007.71 million
Tk.32,830 crore
Tk.32,349 crore
Tk.19,249 crore
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13th March 1983
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Date of Incorporation
Inauguration of 1st Branch
(Local office, Dhaka)
Formal Inauguration
Share of Capital
Local Shareholders
Foreign Shareholders
Authorized Capital
Paid-up Capital
Deposits
Investment
(including Investment in Shares)
Foreign Exchange Business:
Import
CONVENTIONAL VS. ISLAMIC BANKING
1.
The
functions
and
Islamic Banks
operating
modes
of
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Conventional Banks
1. The functions and operating modes of Islamic banks are
banks are
based
on
manmade
based on the principles of Islamic Shariah.
principles.
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conventional
2. The investor is assured of a predetermined rate 2. In contrast, it promotes risk sharing between provider of
of interest.
capital (investor) and the user of funds (entrepreneur).
3. It aims at maximizing profit without any 3. It also aims at maximizing profit but subject to Shariah
restrictions.
restriction.
4. In the modern Islamic banking system, it has become one
4. It does not deal with Zakat.
of the service-oriented functions of the Islamic banks to
collect and distribute Zakat.
5. Leading money and getting it back with 5. Participation in partnership business is the fundamental
interest.
function.
6. It can charge additional money (compound rate 6. The Islamic banks have no provision to charge any extra
of interest) in case of defaulters.
money from the defaulters.
7. The Client’s status is creditor and debtors.
7. The status of clients is investors and trader.
GENERAL BANKING
To maintain all types of deposit accounts
& General Banking.
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To make investment.
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To conduct foreign exchange business
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Products and services of IBBL
Al Wadeah (Current Account)
Al-Mudaraba (Deposit Accounts)
Under Mudaraba Mode:
Mudarabah Savings Account.(MSA)
Mudarabah Term Deposit Account(MTRA)
Mudarabah Special Notice Account.(MSNA)
Mudarabah Hajj Savings Account (MHSA)
Mudarabah Special Savings (MSS)
Mudarabah Saving Bond Scheme(MSBS)
Mudarabah foreign Currency Deposit (MFCD)
Mudarabah Monthly Profit Deposit
Account.(MMPDA)
Mudarabah Muhor saving Account(MMSA)
Mudarabah Waqf cash Deposit Accounts
(MWCDA)
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IBBL
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Major Functions of IBBL:
OF
INVESTMENT MODES OF IBBL
i) Mudaraba
ii) Musharaka
c) Ijarah-
i) Ijara Bil Bai
ii)Hire Purchase under
Sherkatul Melk(HPSM)
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b) Share-
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Main Mechanism of Islamic Investments :
a) Bai i) Bai- Murabaha
ii) Bai-Muajjal
iii) Bai-Salam
iv) Bai-Istisna
FOREIGN EXCHANGE ACTIVITIES
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Foreign exchange transactions are includes:
Import
Export
Remittance
Trading of currency
IMPORT POLICY/EXPORT POLICY
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Exporter
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3. Payment
Correspondent Bank
2. Payment order
4. Goods
1. Financial Contract
Importer
Local Bank
FOREIGN EXCHANGE
BUSINESS OF
IBBL AT A GLANCE:
Achieveme
nt
in 2010
Target for
2011
Achieveme
nt Up to
September
2011
1
2
3
4
5
6
7
Achievement (%)
of target
Growth (%)
1
Import
246,281
305,000
239,170
105%
41%
2
Export
148,421
193,000
137,644
95%
31%
3
Remittan
ce
214,629
275,000
174,703
85%
11%
4
Total
609,331
773,000
551,518
95%
28%
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Business
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SL No
ROLE
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Collection of deposit according to shariah principles from poor
to rich people
Proper channeling of investment funds
Capital Formation
Investment in Trade
Investment in Agriculture
Investment in SME
Investment in Transport
Investment in Garment, Textiles, Electricity
Social Welfare through Islami Bank Foundation (Hospital,
Medical College, School,
Vocational Training)
Highest tax provider in Banking Sector of Bangladesh
Export, Import, Remittance business
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IBBL IN SOCIO-ECONOMIC DEVELOPMENT
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OF
WELFARE ORIENTED INVESTMENT: SPECIAL SCHEMES
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Household Durables Scheme
Housing Investment Scheme
Real Estate Investment Program:
Transport Investment Scheme
Car Investment Scheme
Investment Scheme for Doctors
Small Business Investment Scheme
Agriculture Implements
Investment Scheme
Micro-Industries Investment
Scheme
Rural Development Scheme (RDS)
Mirpur Silk Weavers Investment
Scheme
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Islami Bank Hospital
Islami Bank Medical Collage,
Rajshahi
Islami Bank Community Hospital
Monoram: Islami Bank Crafts &
Fashion Islami Bank Institute of
Technology
Islami Bank International School
and College
Bangladesh Cultural Center
Distressed Women Rehabilitation
center
Islami Bank Nursing Training
Institute
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Special Projects
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SME and Welfare Oriented Special
Schemes
SWOT ANALYSIS OF IBBL
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IBBL lacks well-trained human resource in some
area.
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IBBL lacks aggressive advertising
More funds for Investment: For adequate
financial ability they can provide loan to the
more investment clients.
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The procedure of credit facility is to long
compare to other banks.
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Employees are not motivated in some areas.
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It has vast years of experience since its
establishment.
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Absence of structured marketing and credit
policy
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IBBL is only the Bank which is the pioneer of
welfare banking system among all other financial
and banking organization.
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Lack of coordination among the branches and
Head Office.
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IBBL provides its customer excellent and
consistent quality in every service
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IBBL has already achieved a good will among the
clients.
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IBBL has a research division.
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Adequate Finance: Islami Bank Bangladesh Ltd.
has adequate finance. That is why they need not
to borrow money from Bangladesh Bank or any
other banks.
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Weakness
Strength
SWOT ANALYSIS OF IBBL
Emergence of E-banking will open more
scope for IBBL.
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IBBL can introduce more innovative and
modern customer service.
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Many branches can be open in remote
location.
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IBBL can recruit experienced, efficient
and knowledgeable work force as it offers
good working environment.
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The successful launching and needs to an
Islamic Money Market in the country.
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The worldwide trend of mergers and
acquisition in financial institutions is
causing problem.
Frequent taka devaluation and foreign
exchange rate fluctuation is causing
problem.
Lots of new banks are coming in the
scenario with new service.
Local competitors can capture huge
market share by offering similar
products.
The rules and regulations of Bangladesh
are not favorable for Islami Bank. So they
have to face various problems to operate
their activities according to Islami
Shariah.
Lack of skill personnel because of poor
salary structure rather than other private
banks.
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Threats
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Opportunity
SUGGESTIONS
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To ensure better customer services coping with the growth of
overall business of the Branch additional space may kindly be
allocated immediately for the branch.
Evening banking allowance may be increased.
Automation of Foreign Exchange portfolio.
Revision of Foreign Exchange related charges
Ensure reasonable spread and return on assets.
Build good value for sponsors and shareholders.
Formulation of Recruitment / remuneration policy should be
outstanding.
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CONCLUSION
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Most of the people in our country have a bad impression about IBBL’s
operations regarding indirect generation of interest, which means no
difference between investments of IBBL loan/credit/advance of
conventional banks for this reason. They are not much interested to
investment with IBBL because majority of our people have no proper
knowledge about the activities of Islami banking as well as its investment
mechanisms.
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Significant growing of IBBL has encouraged the traditional banks to open
Islamic banking window, like –HSBC, Dhaka Bank Ltd., Prime Bank Ltd,Bank
Asia, The city Bank Ltd etc.
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To conclude we must say that, Islami bank Bangladesh Limited (IBBL) has
immense potential in Bangladesh. It can play vital role in bringing
revolutionary changes in our life with both material and moral world and in
individual and collective level.
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IBBL is trying to develop banking sector through welfare and
servicing to the people. Islami economy and banking are bound
together.
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END OF THE PRESENTATION