1. 1
TABLE OF CONTENTS
Tropics
Page
CHAPTER 1:..............................................................................................................................2
1.1:History of IBBL: ...................................................................................................................2
1.2:Mission of the Bank...............................................................................................................3
1.3:Vision of the Bank.................................................................................................................3
1.4:Strategic Objectives ...............................................................................................................4
1.5:Branches of IBBL in Bangladesh by division of areas ..............................................................5
1.6:Corporate information at a glance (As on July, 2016):..............................................................6
1.7:Structure of the organization:..................................................................................................7
CHAPTER 2:..............................................................................................................................8
2.1:Definition of an Islamic Bank:................................................................................................8
2.2:List of Islamic Banks in Bangladesh .......................................................................................8
:2.3Principles of Islamic Banking: ................................................................................................8
Mudarabah................................................................................................................................8
Ijarah ......................................................................................................................................10
2.4:Objective of the Bank: .........................................................................................................11
2.5:Problem Specific to Islamic Banking in Bangladesh...............................................................11
CHAPTER 3:............................................................................................................................14
Islamic Products & Services of IBBL .........................................................................................14
3.1:Deposit Products..................................................................................................................14
3.2:Investment products.............................................................................................................14
3.3:Rural Development Scheme'.................................................................................................15
3.4:(1).NRB(Non Resident Bangladeshi) Entrepreneurs Services..................................................16
3.5:(2)Sme Information..............................................................................................................16
3.6:(3).Foreign exchange service:...............................................................................................17
3.7:(4) Locker service:...............................................................................................................18
04:Conclusion:..........................................................................................................................21
2. 2
CHAPTER 1:
1.1:History of IBBL:In the late seventies and early eighties, Muslim countries were
awoken by the emergence of Islami Bank which provided interest free banking facilities.
There are currently more than 300 interest free institutions all over the world. Islami Bank
now a days not only operate in almost all Muslim countries but have extended their wings to
the western world to serve both Muslim and non Muslim customers. In case of Islami
Banking, the establishment of Mitghamar Local Savings Bank in 1963 is said to be a
milestone for modern Islami Banking. The history of Islami Banking can nevertheless be
traced back to the birth of Islam.
In 1974, Bangladesh signed the Charter of Islamic Development Bank and committed itself to
reorganise its economic and financial system as per Islamic Shariah (legal framework of
Islamic Ideology).
In 1978, Bangladesh recommended in Islamic Foreign Minister Conference in Senegal
towards systematic efforts to Islamic Banking.
In 1980, Foreign Minister Conference in Pakistan where Bangladesh Foreign Minister Prof.
ShamsulHoq, proposed for taking steps for Islamic Banking. Further, Bangladesh Bank sent
representation abroad to study Islamic Banking System. Also, International Seminar held in
Dhaka inaugurated by Bangladesh Bank Governor for early introduction of Islamic Banking.
In 1981, President of the Peoples Republic of Bangladesh addressed the 3rd Islamic Summit
Conference held at Makkah and Taif suggested, ”The Islamic countries should develop a
separate banking system of their own in order to facilitate their trade and commerce.”
In 1982, IDB visited Bangladesh for study. They found contributions done by Islamic
Economics Research Bureau (IERB) and Bangladesh Islamic Bankers Association (BIBA);
they mobilized the seminars, public opinion through symposia & workshop. Professional
activities reinforced by Muslim Businessman Society (now reorganized as Industrialists and
Businessman Association). The body mobilized mainly equity capital for emerging Islamic
Bank. Finally, in 1983 Islami Bank Bangladesh Limited (IBBL) came out to take the
challenge of doing banking business.
Islami Bank Bangladesh Limited (IBBL) is considered to be the first interest free bank in
Southeast Asia. It was incorporated on 13-03-1983 as a Public Company with limited liability
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under the companies Act 1913. The bank began operations on March 30, 1983, with major
share by the foreign entrepreneurs.
IBBL is a joint venture multinational Bank with 63.92% of equity being contributed by the
Islamic Development Bank and financial institutions. The total number of branches in 2010
stood at 232. Now the authorized capital of the bank is Tk. 10,000 million and Paid op capital
is Tk. 6,177.60 million.
1.2:Mission of the Bank
To establish Islamic banking through the introduction of a welfare oriented banking system
and also ensure equity and justice in the field of all economic activity balanced growth and
equity development through diversified investment operations particularly in the priority
sectors and less development areas of the country. To encourage socio-economic uplift
and financial services to the low income community particularly in the rural areas.
1.3:Vision of the Bank
The vision of IBBL is to always strive to achieve superior financial performance, be
considered a leading Islamic Bank by reputation and performance. Besides,
To establish and maintain the modern banking technology, to ensure the soundness and
development of the financial system based on Islamic principles and become the strong and
efficient organization with highly motivated professionals, working for the benefit of people,
based upon accountability, transparency and integrity in order to ensure stability of financial
system.
Try to encourage savings in the form of direct investment
Try to economic investment particularly in projects, which are move likely to lead to higher
employment.
4. 4
1.4:Strategic Objectives
To ensure customers' satisfaction.
To ensure welfare oriented banking.
To establish a set of managerial succession and adopting technological changes to ensure
successful development of an Islamic Bank as a stable financial institution.
To prioritize the clients welfare.
To emerge as a healthier & stronger bank at the top of the banking sector and continue stable
positions in ratings, based on the volume of quality assets.
To ensure diversification by Sector, Size, Economic purpose & geographical location wise
Investment and expansion need based Retail and SME/Women entrepreneur financing.
To invest in the thrust and priority sectors of the economy.
To strive hard to become a employer of choice and nurturing & developing talent in a
performance-driven culture.
To pay more importance in human resources as well as financial capital.
To ensure lucrative career path, attractive facilities and excellent working environment.
To ensure zero tolerance on negligence in compliance issues both sharia’h and regulatory
issues.
To train & develop human resources continuously & provide adequate logistics to satisfy
customers’ need.
To be excellent in serving the cause of least developed community and area.
To motivate team members to take the ownership of every job
5. 5
1.5:Branches of IBBL in Bangladesh by division of areas
Divisions Number of branches
Barisal Zone 25
Bogra Zone 19
Chittagong North Zone 19
Chittagong South Zone 25
Comilla Zone 21
Corporate Branches 4
Dhaka Central Zone 15
Dhaka North Zone 22
Dhaka South Zone 30
Khulna Zone 27
Mymensingh Zone 22
Noakhali Zone 20
Rajshahi Zone 18
Rangpur Zone 17
Sylhet Zone 20
6. 6
1.6:Corporate information at a glance (As on July, 2016):
Date of Incorporation 13th March 1983
Inauguration of 1st Branch
(Local office, Dhaka)
30th March 1983
Formal Inauguration 12th August 1983
Share of Capital
Local Shareholders 41.77%
Foreign Shareholders 58.23%
Authorized Capital Tk.10,000.00 million
Paid-up Capital Tk.6,177.60 million
Deposits Tk.244,292.14 million
Investments (including Investment in Shares) Tk.214,615.80 million
Foreign Exchange Business Tk.462,370.00 million
Number of Branches 212
Number of SME Service Centers 20
Number of Shareholders 52,164
Manpower 9588
Address of the Head office
Islami Bank Tower
40, Dilkusha C/A
Dhaka – 1000
Bangladesh
GPO Box no. : 233
Telephone : (02) 9563040(Auto Hunting), 9560099, 9567161, 9567162, 9569417
Telex : 642525 IBANK BJ 632403 IBANK BJ 671620 IBANK BJ
Fax : 880- 2- 9564532, 880 -2- 9568634
SWIFT : IBBLBDDH
Cable : ISLAMIBANK
E-Mail : info@islamibankbd.com
Web : http://www.islamibankbd.com
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1.7:Structure of the organization:
Chairman
Vice- Chairman
Board of Directors
Managing Director
Deputy Managing Director
Executive Vice President
Senior Vice President
Vice President
Assistant Vice President
Senior Principal Officer
Principal Officer
Probationary Officer
Assistant Officer Grade- I
Assistant Officer Grade- II
Assistant Officer Grade- III
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CHAPTER 2:
2.1:Definition of an Islamic Bank:
An Islamic bank is a financial institution that operates with the objective to implement and
materialize the economic and financial principles of Islam in the banking arena.
The Organization of Islamic Conference (OIC) defined an Islamic Bank as a financial
institution whose statutes, rules and procedures expressly state its commitment to the
principles of Islamic Shariah and to the banking of the receipt and payment of interest on any
of its operation.
2.2:List of Islamic Banks in Bangladesh
1 ICB Islamic Bank
2 Islami Bank Bangladesh Ltd
3 ShahjalalIslami Bank
4 Sonali Bank Limited
5 First Security Islami Bank Limited
6 Exim Bank Limited
7 Al-ArafahIslami Bank Limited
8 Social Islami Bank Limited
:2.3Principles of Islamic Banking:
Mudarabah
"Mudarabah" or Profit-and-loss sharing contract is a kind of partnership where one partner gives
money to another for investing it in a commercial enterprise. The capital investment should
normally come from both partners. Both should have some skin in the game.
The Mudarabah (Profit Sharing) is a contract, with one party providing 100 percent of the capital
and the other party providing its specialized knowledge to invest the capital and manage the
investment project. Profits generated are shared between the parties according to a pre-agreed
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ratio. If there is a loss, the first partner "rabb-ul-mal" will lose his capital, and the other party
"mudarib" will lose the time and effort invested in the project The profit is usually shared 50%-
50% or 60%-40% for rabb-ul-mal.
According to economist Tarik M. Yousef, long-term financing with mudarabah or musharakah
(both profit-and-loss-sharing mechanisms) is "far riskier and costlier" than the long term or
medium-term lending of the conventional banks. As a consequence there has been a
"divergence" between the theory of equity-based Islamic finance and the reality of murabahah-
dominated practices of Islamic banks
Musharaka (Partnership based investment):
The word “Musharaka” has been derived from Arabic words “Sharikat” or “Shirkat”. In
Arabic Sharikat and Shirkat means partnership or sharing. Thus the word “Musharaka” means
a partnership between two or more persons or institutions.
Musharaka means a partnership established between two or more persons or institutions for
purpose of a commercial venture participated both in the capital and management where the
profit may be shared between the partners as per agreed upon ratio and the loss, if any is to be
borne by the partners at per capital/equity ratio.
In this case of Investment, “Musharaka” meaning a partnership between the Bank and the
Client for a particular business in which both the Bank and the Client provide capital at an
agreed upon ratio and manage the business jointly. Share the profit as per agreed upon ratio
and bear the loss, if any in proportion to their respective equity.
Bank may move itself with the selected Client for conducting any Shariah permissible
business under Musharaka mode.
Features of Musharaka:
Bank and client both supply capital unequally/equally.
Profit is divided as per agreement and actual loss is divided as per equity.
Client will maintain all accounts properly bank or its agent may verify or audit it.
Banks can advice the client in such a business in respect of the businesss
All partners can participate in the management of the business and can work for it.
The liability of the partner is normally unlimited. Therefore, all the liabilities shall be borne
proportionately by all the partners.
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Bai-Muajjal (Deferred Sale):
Meaning and Definition:
“Bai-Muajjal” means sale for which payment is made at future fixed date or within a fixed
period. In short, it is sale on Credit. The Bai-Muajjal may be defined as a contract between a
buyer and a seller under which the seller sells certain specific goods, permissible under
Shariah and law of the country, to the buyer at an agreed fixed price payable at a certain fixed
future date in lump sum or in fixed installments.
Features of Bai-Muajjal:
It is permissible and in most cases, the client will approach the bank with an offer to
purchase a specific good through a Bai-Muajjal agreement.
It is permissible to make the promise binding upon the client to purchase the goods from
the bank.
It is permissible to take cash/collateral security to guarantee the implementation of the
promise or to indemnify the bank for damages caused by non-payment.
It is also permissible to document the debt resulting from Bai-Muajjal by a Guarantor, or a
mortgage or both, like any other debt. Mortgage/Guarantee/Cash security may be obtained
prior to the signing of the Agreement or at the time of signing the Agreement.
All goods purchased on behalf of a Bai-Muajjal agreement are the responsibility of the
bank until they are delivered to the client.
The bank must deliver the goods to the client at the time and place specified in the
contract.
The bank may sell the goods at a higher price than the purchase price to earn profit.
The price is fixed at the time of the agreement and cannot be altered.
The bank is not required to disclose the profit made on the transaction
Ijarah
Ijarah means lease, rent or wage. Generally, the Ijarah concept refers to selling the benefit of use
or service for a fixed price or wage. Under this concept, the Bank makes available to the
customer the use of service of assets / equipment such as plant, office automation, motor vehicle
for a fixed period and price.
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Baisalam:
Baisalam means a contract in which advance payment is made for goods to be delivered later
on. The seller undertakes to supply some specific goods to the buyer at a future date in
exchange of an advance price fully paid at the time of contract. It is necessary that the quality
of the commodity intended to be purchased is fully specified leaving no ambiguity leading to
dispute. The objects of this sale are goods and cannot be gold, silver, or currencies. Barring
this, Bai Salam covers almost everything, which is capable of being definitely described as to
quantity, quality, and workmansh
2.4:Objective of the Bank:
To conduct interest-free banking.
To establish participatory banking instead of banking on debtor-creditor relationship.
To invest through different modes permitted under Islamic Shariah.
To accept deposits on profit-loss sharing basis.
To establish a welfare-oriented banking system.
To extend co-operation to the poor, the helpless and the low-income group for their
economic development.
To play a vital role in human development and employment generation.
To contribute towards balanced growth and development of the country through
investment operations particularly in the less developed areas.
To contribute in achieving the ultimate goal of Islamic economic system.
2.5:Problem Specific to Islamic Banking in Bangladesh
1. Absence of Islamic Money Market
In the absence of Islamic money market in Bangladesh, the Islamic banks cannot invest their
surplus fund i.e., temporary excess liquidity to earn any income rather than keeping it idle.
Because all the Government Treasury Bills, approved securities and Bangladesh Bank Bills in
Bangladesh are interest bearing. Naturally, the Islamic banks cannot invest the permissible part
12. 12
of their Security Liquidity Reserve and liquid surplus in those securities. As a result, they deposit
their whole reserve in cash with Bangladesh Bank. Similarly, the liquid surplus also remains
uninvested. On the contrary, the conventional banks of the country do not suffer from this sort of
limitations. As such, the profitability of the Islamic banks in Bangladesh is adversely
affected.
2. Absence of Suitable Long-term Assets
The absence of suitable long term assets available to Islamic banks is mirrored by lack of short
term tradable financial instruments. At present there is no equivalent of an inter-bank market in
Bangladesh where banks could place, say, over night funds, or where they could borrow to
satisfy temporary liquidity needs. Trading of financial instruments is also difficult to arrange
when rates of return are not know until maturity. Furthermore, it is not clear whether Islamic
banks in Bangladesh can utilise more exotic instruments, such as derivatives, that are becoming
increasingly popular with conventional banks. Obviously, these factors place Islamic banking in
Bangladesh at a distinct disadvantage compared to its conventional banking counterpart.
3. Shortage of Supportive and Link Institutions
Any system, however well integrated it may be, cannot thrive exclusively on its built-in
elements. It has to depend on a number of link institutions and so is the case with Islamic
banking. For identifying suitable projects, Islamic banking can profitably draw the services of
economists, lawyers, insurance companies, management consultants, auditors and so on. They
also need research and training forums in order to prompting entrepreneurship amongst their
clients. Such support services properly oriented towards Islamic banking are yet to be developed
in Bangladesh.
4. Organizing Relationship with Foreign Banks
Another important issue facing Islamic banks in Bangladesh is how to organise their
relationships with foreign banks, and more generally, how to conduct international operations.
This is, of course, an issue closely related to the creation of financial instruments, which would
13. 13
be simultaneously consistent with Islamic principles and acceptable to interest-based banks,
including foreign banks.
5. Long-term Financing
Islamic Banks stick very closely to the pricing policies of the government. They can not benefit
from hidden costs and inputs, which elevate the level of prices by certain entrepreneurs without
any justification. On the other hand, Islamic banks as financial institutions are even more directly
affected by the failure of the projects they finance. This is because the built in security for getting
back their funds, together with their profits, is in the success of the project. Islamically, it is not
lawful to obtain security from the partner against dishonesty or negligence, both of which are
very difficult if not impossible to prove.
14. 14
CHAPTER 3:
Islamic Products & Services of IBBL
Islamic products:
1.Deposit product
2.Investment products
3.Rural Development Scheme'
3.1:Deposit Products
Islami Bank Bangladesh Limited mobilizes deposits through different types of accounts.
Al-Wadeah Accounts
Mudaraba Accounts
Al-Wadeah Accounts
Islami Bank Bangladesh Limited operates Al-wadeah Current Account on the principles of Al-wadeah.
The Bank commits to refund money deposited in these Accounts on the demand of customers. On the
other hand the Bank takes permission from customers that the Bank may utilize their money. Customers
may operate these Accounts as their desires. No profit is disbursed in these Accounts and depositors do
not bear any loss
Mudaraba Accounts
In the perspective of these Accounts the Bank is 'Mudarib' and customers are 'Shahib Al-Mal'. On behalf
of depositors, the Bank invests their deposited money and distributes minimum 65% of investment-
income earned through deployment of Mudaraba funds among Mudaraba depositors after the closing of
the year.
3.2:Investment products
15. 15
The special feature of the Investment Policy of the Bank is to invest on the basis of profit-loss
sharing system in accordance with the tenets and principles of Islamic Shari'ah. Earning of profit
is not the only motive and objective of the Bank's Investment Policy rather emphasis is given in
attaining social goal and objective in creating employment opportunities.
Following modes are used for investment:
BAI-MODES
Baimurababa
BaiIstijrar
Bai-Muajjal
Bai Salam
Istisna’a
Bai-As-Sarf
SHARE-MODES
Mudaraba
Musharaka
IJARA-MODES
Hire Purchase Under ShirkatulMel
Under consumer financing, the Bank finances to the individuals for meeting their personal.
family and household needs. The Bank has taken up various welfare oriented investment
Schemes
3.3:Rural Development Scheme' has been introduced in 1995 to cater to the investment
needs of the agriculture and rural sector to create opportunity for generation of employment and
16. 16
raising income of the rural people with a view to alleviate poverty. It is treated as first Islamic
Microfinance Model in the Country & abroad.
Objectives:
1.To extend investment facilities to agricultural, other farming and off-farming activities in the
rural areas
2. To finance self-employment and income generating activities of the rural people, particularly
the rural unemployed youths and the rural poor
3. To alleviate rural poverty through integrated rural development approach.
4. To extend investment facilities for hand tube-wells and rural housing, keeping in view the
needs of safe drinking water and housing facilities of the rural dwellers
5. To provide education and Medicare facilities to the down-trodden people.
Islamic Services:
1.NRB(Non Resident Bangladeshi) Entrepreneurs Services.
2.SME Information.
3.Foreign exchange service.
4.Locker Service.
5.Offshore Banking Units (OBU).
3.4:(1).NRB(Non Resident Bangladeshi) Entrepreneurs Services
Features
1,Remitance Card
2.Investment Scheme for Foreign Expatriate
3.Mudaraba NRB Saving Bond
3.5:(2)Sme Information
Islami Bank Bangladesh Limited has been working since 1983 in the view to establish a welfare
oriented Islami Banking system and also to ensure equity and justice in the field of all economic
activities, achieve balanced growth and equitable development through diversified investment
operations particularly in the priority sectors and less developed areas of the country and to
17. 17
encourage socio-economic uplift and financial services to the low income community,
particularly in the rural areas. Since inception of the Bank, it has been giving priority in
financing SMEs.
Formation of SME Division
The Board in its emergent meeting held on 02.11.2005 approved a memo bearing No. 2005/155
with the following resolution:
“Resolved that the investment in Small Enterprise shall be made in accordance with the terms
and conditions contained in the Annexed “Comprehensive Small Enterprise Investment Policy”
and SME Division under Investment Wing shall be established with necessary restructuring and
duly manning with adequate officials as proposed.”
In order to emphasize SME investment, to run its SME functions smoothly and to strengthen the
SME activities of the bank, it has created a separate Division namely “Small and Medium
Enterprise Division” in 2009.
Specialized SME Branches
As per guideline and regulation of Bangladesh Bank, the Board of Directors of the Bank has
selected a good number of SME prone areas, where Specialized SME/Agriculture Branches are
being opening in order to facilitate the potential entrepreneurs in accessing to the finance from
Sharia’h based banking sector. So far nos. of such Specialized SME Branches have been opened
and more such Branches shall be opened at the SME prone areas by orde
3.6:(3).Foreign exchange service:
Islami Bank Bangladesh Limited has introduced a new deposit product titled 'Mudaraba Foreign
Currency Deposit Scheme (Savings)' under Mudaraba principle and endeavouring to invest the
foreign currency funds in profitable way through its Foreign Correspondent Banks under Shariah
Principle so as to enable the Bank to pay profit to its FC/PFC depositors, who will intend to
open/maintain Mudaraba Foreign Currency Deposit (MFCD) Account particularly in US Dollar.
18. 18
This Scheme offers investment opportunities to wage earners and other private Foreign Currency
Account holders who do not like to keep their funds in interest bearing deposit accounts or invest
in interest bearing schemes. To encourage savings in Foreign Currency by offering a safe and
profitable opportunity to the savers/investors by way of sharing a portion of the profit out of the
investment of their funds as per principles of Shariah and to extend the Banks Deposit Scheme
for mobilisation of remittance of Bangladeshi expatriates to increase the opportunity for their
income generation and increase in the wealth of individuals and of the nation through profitable
investment as per Shariah principles are the special features of the Scheme.
Objectives
To offer investment opportunity to the Wage Earners and other private Foreign Currency account
holders who do not like to keep their funds in interest bearing deposit accounts or invest in
interest bearing schemes.
To encourage savings in Foreign Currency by offering a safe and profitable opportunity to the
savers/investors by way of sharing a portion of the profit out of the investment of their funds as
per principles of Shariah.
To extend the Bank's Deposit Scheme for mobilization of remittance of Bangladeshi expatriates
to increase the opportunity for their income generation and increase in the wealth of individual
and of the nation through profitable investment as per Islamic Shariah Principles.
3.7:(4) Locker service:
Our safe deposit locker service offered from select branches gives you a completely secured
facility for safekeeping of precious items, confidential documents and other valuables.
Services
1.Personalised service
2.Facilities to access outside scheduled time
3. Parcel handling
19. 19
4. Safe custody of goods and bonds/shares
5. Lockers available in various sizes. i.e. Small, Medium and Large.
3.8(5)Offshore Banking Units (OBU).
Islami Bank Bangladesh Limited commenced operation of its Off-Shore Banking Units (OBU)
located at Head Office Complex Branch- Dhaka, Uttara Branch-Dhaka and Agrabad Branch,
Chittagong under the license issued by Bangladesh Bank. Details particulars of OBUs of IBBL
as unde
Deposit clients of OBU:
Islami Bank Bangladesh Limited commenced operation of its Off-Shore Banking Units (OBU)
located at Head Office Complex Branch- Dhaka, Uttara Branch-Dhaka and Agrabad Branch,
Chittagong under the license issued by Bangladesh Bank. Details particulars of OBUs of IBBL
as under:
Deposit products :
01. Al-Wadiah Current A/C
02. Import Finance/facility
Local banks may also maintain foreign currency accounts with OBUs in the manner they
maintain such accounts with their foreign correspondents.
20. 20
Area of Investment of OBU:
OBU can finance mainly to Fully Foreign Owned Companies at home and abroad, A-Type
Farms/Companies in EPZ territory and in limited cases to Joint Venture/Local Industrial unit in
Bangladesh in the form of term investment provided permission from Board of Investment
(BOI). Investment Products
01.Bill Financing (Mudaraba Documentary Bill (UPAS)
02.Import Finance/facility
03.Export Finance/facility.
04.Short Term Murabaha.
05.Project Finance.
21. 21
04:Conclusion:
Islam is a complete way of life and Allah’s guidance extents into all areas of our lives. Islam has
given detail regulations for our economic life. Therefore, Islami Bank Bangladesh Limited
(IBBL) is trying to establish the maximum welfare of the society by maintaining the principles of
Islamic Shariah which is based on “Quran” and “Sunnah”. Since 1983, IBBL is the pioneer in
welfare banking in this subcontinent and it is trying to do all its activities for the betterment of its
depositors. For the greater interest of the depositors the investment policy of IBBL is to invest on
the basis of profit and loss sharing in accordance with the tents and principles of Islamic Shariah.
Profit earning is not the only motive and objective of the bank’s investment policy rather
emphasis is given in attaining social good and in creation employment opportunities.
IBBL is not secular in its orientation. IBBL does not finance any project which conflicts with the
moral value system of Islam. IBBL does not strictly consider the credit worthiness of the
entrepreneur. IBBL receives a return only if the project succeeds and produces a profit. IBBL
considers the soundness of the project and business acumen and managerial competency of the
entrepreneur. Therefore, the rate of return of investment of IBBL is greater comparing to that of
conventional banks.
Finally, Islami Bank Bangladesh Limited (IBBL) has been established with a view to conduct
interest free banking to establish participatory banking instead of debtor-creditor relationship and
finally to establish welfare oriented banking through its investment operations that would lead to
a just society.
