Investment Activities of Islami Bank Bangladesh Limited

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Internship Report
On
Investment Activities of
Islami Bank Bangladesh Limited

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Submitted To:
Mr. Nurul Mohammad Zayed
Assistant Professor
Department of Business Administration
Faculty of Business & Entrepreneurship
Daffodil International University
Submitted By:
Md. Mohibullah Any
ID: 172-11-5562
Program: BBA
Major: Finance
Date of Submission: August 17, 2022

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Letter of Transmittal
Date: August 17, 2022
Assistant Professor
Dear Sir,
I take pleasure in submitting the report on “Investment Activities of Islami Bank Bangladesh
Limited (2016 to 2020)” as a requirement of the BBA program of the Department of Business
Administration for your consideration. I have completed the report in due time and met all the
proposed objectives. Apart from the academic knowledge gained, this internship program and
preparation of the report has allowed me to understand the topic related knowledge.
I have tried my best to make this report a comprehensive and informative one. I hope you will
appreciate my endeavor and find the report up to your expectation.
It has to be mentioned further that without your advice and cooperation it would not be possible
for me to complete this report. I shall be gratified to answer any sort of queries you think necessary
regarding this report.
Yours Sincerely,
Md. Mohibullah Any
ID: 172-11-5562
Program: BBA
Major: Finance

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Approval Certificate
This is certified that Md. Mohibullah Any, ID No: 172-11-5562, BBA (Major: Finance) is a
regular student of the Department of Business Administration, Faculty of Business &
Entrepreneurship, Daffodil International University. He has completed his internship program
at Islami Bank Bangladesh Limited and has prepared this internship under my direct supervision.
His assigned internship topic is “Investment Activities of Islami Bank Bangladesh Limited
(2016 to 2020)”. I think that the report is worthy of fulfilling the partial requirements of the BBA
program. I also declare that the study has been prepared for academic purposes only and this paper
may not be used in the actual market scenario.
I have gone through the report and found it a well-written report. He has completed the report by
himself. I wish him every success in life.
Assistant Professor

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Acknowledgement
In the name of Allah, the merciful and benevolent. This paper would not have been possible
without the direction and assistance of several people who participated and extended their
important help in the preparation and completion of this study in various ways.
I started this internship report and finally, it has been completed. However, the special thanks go
to my helpful supervisor, Mr. Nurul Mohammad Zayed (Assistant Professor, Department of
Business Administration, Faculty of Business & Entrepreneurship, Daffodil International
University). The supervision and support that he gave truly help the progression and smoothness
of the internship program. The co-operation is much indeed appreciated.
I'm grateful to all of the senior officials at Islami Bank Bangladesh Limited for allowing me to
gain practical experience. Furthermore, this internship program has taught me the importance of
working as a team and as a fresh experience in the workplace, which pushes me every minute.
Last but not least, I owe this report to everyone who was involved in it, both inside and outside of
Islami Bank Bangladesh Limited.

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Executive Summary
Practical orientation is incredibly contrasting from hypothetical information through its activity,
multifaceted nature and execution. To legitimize the hypothetical direction has incredible
significance. The internship program is an incredible chance to legitimize the hypothetical
information concerning the reasonable world. In this way, it is an ideal choice for the Department
of Business Administration and direction with the Practical job environment.
There are five chapters in the report. The study's objective, methodology, scope, schedule, and
limitations are all discussed in the first chapter. The second chapter is an overview of Islami
Bank Bangladesh Limited, including its history, vision, mission, and goals, as well as its
management structure. The conceptual framework is covered in the third chapter, which includes
the definitions of bank, commercial bank, Islamic bank, investment, investment under Islamic
Shariah, bai-Murabaha (contract sale on profit), bai-muajjal (deferred sale), shirkatul Melk,
mudaraba (entrepreneurial investment), and musharaka (partnership-based investment).Different
Investment Activities of IBBL Investment Mechanism of IBBL, accepting the proposal,
confirming consumers, restricting business, and research findings are covered in the fourth
chapter, analysis and findings. The fifth chapter concludes with references, recommendations, and
a conclusion.
The following are the study's main findings: Industrial investments dominate those of other high-
earning industries, and IBBL's overall investment is gradually expanding. As a result, they have
made more money from investments in the industrial sector, as well as meeting their investment
goals. The achievement in the first two years is lower, but the achievement % in the last year is
higher than in prior years. In terms of investment payouts, Brach was successful.
The primary recommendations are that Islami Bank Bangladesh Limited sustain its growth and try
to expand its investment; they should aim to raise their investment not just in industrial sectors but
in all sectors, and branches should take steps to reach the investment target.

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Table of Contents
Sl. Content
No.
Content Page
1 - Cover 01
2 - Cover 02
3 - Cover 03
4 - Letter of Transmittal IV
5 - Approval Certificate V
6 - Acknowledgement VI
7 - Dedication VII
8 - Executive Summary VIII
9 - Table of Contents IX-XI
10 CHAPTER 01: INTRODUCTION 1
11 1.1 Introduction to the Study 2-3
12 1.2 Background of the Study 4
13 1.3 Origin 4
14 1.4 Purpose 4
15 1.5 Objective 5
16 1.6 Scope of the Study 5
17 1.7 Limitation of the Study 5-6
18 1.8 Significance of the Study 6-7
19 1.9 Methodology 7-8
20 1.10 Definitions of Important Terms 8
21 CHAPTER 02: ORGANIZATIONAL OVERVIEW 9
22 2.1 Historical Profile of Islami Bank Bangladesh Limited 10
23 2.2 Corporate Structure of Islami Bank Bangladesh Limited 11-12
24 2.3 Vision of Islami Bank Bangladesh Limited 13
25 2.4 Mission of Islami Bank Bangladesh Limited 13

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26 2.5 Strategic Objectives of Islami Bank Bangladesh Limited 14-15
27 2.6 Core Values of Islami Bank Bangladesh Limited 15-16
28 2.7 Commitments of Islami Bank Bangladesh Limited 16
29
2.8 Code of Conduct & Ethical Principles of Islami Bank
Bangladesh Limited
16-18
30
CHAPTER 03: INVESTMENT PRODUCTS OF
Islami Bank Bangladesh LIMITED
19
31 3.1 Bank 20
32 3.2 Concept Of Islamic Bank 20
33 3.3 Definition Of Investment 20
34 3.4 Investment Under Islamic Shariah 21
35 3.5 Bai-Murabaha (Contract Sale On Profit) 21
36 3.5.1 Bai-Muajjal (Deferred Sale) 21
37 3.5.2 Definition Of Shirkatul Melk 22
38 3.5.3 3.5.3 Definition Of Ijarah 22
39 3.5.4 Mudaraba (Investment Made By The Entrepreneur) 22
40 3.5.5 Musharaka (Partnership Based Investment) 22
41 3.5.6 Bai-Salam (Advance Payment) 22
42 3.5.7 Ijarah 22
43
3.6 Difference Between Convectional Banking And Islami
Banking
23-24
44 3.7 Investment customer services 24
45 3.8.1 Investment modes 25
46 3.8.2 Investment products 25-26
47 3.8.3 Investment Scheme 27-28
48 3.9 Accept Proposal 29
49 3.10 Verifying Customers 29
50 3.11-3.12 Lease Finance & Restricted Business 29-30
51 3.13-3.14 Securities & Investment Approval 38-39

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52
CHAPTER 04: INVESTMENT PERFORMANCE
ANALYSIS OF ISLAMI BANK BANGLADESH LIMITED
(2016 -2020)
32
53 4.1 Year Wise Investment & Growth Rate Of IBBL 33-34
54 4.2 Year Wise Investment to Deposit Ratio Analysis 34-36
55 4.3 Mode Wise Investment IBBL In 2020 36-37
56 4.4 Classified Investment As A Percentage Of Total Investment 37-38
57 4.5 Unclassified Investment As A Percentage Of Total Investment 39-40
58 4.6 Classification Of Classified Investment: 40
59 4.6.1 Sub Standard Investment of IBBL 40-41
60 4.6.2 Doubtful Investment of IBBL 41-42
61 4.6.3 Bad & loss Investment of IBBL 42-43
62 4.7 Sector Wise Investment 43-45
63
CHAPTER 05: FINDINGS, RECOMMENDATIONS AND
CONCLUSION
46
64 5.1 Findings of the Study 47
65 5.2 Recommendation 48
66 5.3 Conclusion 49
67 REFERENCES 50

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CHAPTER 01:

1.1 Introduction to the Study
The bank is a long-standing institution that contributes to the growth of any economy and is recognized
as a vital support industry in today's globe. The financial framework's contribution to a country's
monetary development is the most significant in the early stages of growth, according to monetary
history.
Current banks have a substantial influence on a country's monetary advancement. During the financial
turn of events, the bank provides essential assets for the execution of various projects. They collect
reserve monies from large groups of people distributed around the country, which would have remained
ideal and inefficient without banks; these dispersed quantities are gathered, pooled, and made available
to business and industry for meeting monetary requirements.
By providing mechanisms for instalment and asset assembly, the bank becomes a vital pillar of the
economy. The bank is the most important financial institution in a country whose economic development
is dependent on the advancement of the financial sector. The modern banks are providing traditional
banking while also expanding their monetary administrations.
Banks play an important role in a country's financial development. When a monetary foundation like a
bank acts as a conduit arrangement for the economy, cash is likely the most important and fundamental
component that may be compared to blood in our bodies. Because of its mediator role, the banking system
plays an important role in a country's economy; it ensures allocation and keeps the energy of monetary
activities going.
Since the 1990s, Bangladesh's economy has experienced rapid growth. Banks provide subsidizing and
monetary administrations to both local businesses and inhabitants in the surrounding neighborhood, and
the cash banks put back into the neighborhood through representative financing, company speculations,
and assessments. Above all, banks meet societal needs by offering diverse structures such as investment
funds, MSS, FD, SND, and a variety of other options at reasonable rates. In addition, the bank provides
lending facilities to top-tier investors for large-scale projects in the mechanical, foundation, and
administration fields.
The financial industry is critical for both domestic and international trade. Today, no country can imagine
their economy without global trade. In addition, the financial industry provides some non-traditional

administrations such as calculating, providing bank guarantees, and so on, which are particularly
important to today's public and global exchanges. Financial prosperity is a prerequisite for any form of
country's advancement. The responsibility of various cash-related associations is critical in assisting such
progress. If there is a period of economic growth, the banking sector is now the fastest growing sector.
Bank has adopted a critical role in the industrialization process. Given political anguish and nepotism,
the current state of dealing with a record in Bangladesh is not one of financial assistance. It is critical to
increase financial support for the cutting-edge section. There is no cutting-edge relationship with canning
setup without financial assistance. As a result, working with a record affiliation should shift to assisting
various gathering and non-manufacturing relationships in order to grow the advanced division.
Islami Bank Bangladesh Ltd, founded on March 13, 1983, is the country's leading Shariah-based value-
added financial institution. IBBL Securities Limited, IBBL Investment Limited, and IBBL Foundation
Hospital are all part of IBBL. Working closely with their valued clients and partners to provide one-stop
help and access to the most up-to-date products using technology. Their unrivaled customer service has
made them unrivaled in the industry. They form long-term business relationships with their clients,
supporting them in becoming more productive.
With 13,000 employees in 384 locations and 221 subbranches across the country, they are always ready
to present. It also has 2306Agent Banking shops to supply food and monetary services to the most remote
parts of the country.
IBBL's movements of all kinds are built on a firm belief in creating an aware society. They have a strong
affinity for people's emotions. They acknowledge that major financial exercises are incapable of bringing
their broad public to a level of fairness and impartiality. As a result, they are frequently engaged in
philanthropic CSR activities. They work in areas ranging from poverty eradication to family
strengthening. Unlike others, the Bank's progress measurements include not only the vital goal of re-
establishing the bank, but also milestones toward becoming the country's most helpful and
comprehensive institution.
The primary goal of this research is to generate ideas on Islami Bank Bangladesh Limited's consumer
loyalty level. This study attempts to reflect Islami Bank Bangladesh Limited's monetary business
position, approach exercises, and consumer loyalty management characteristics.

1.2 Background of the Study
The temporary work program is an critical component of the Bachelor of Business Administration
diploma (BBA). This program gives the understudy a lot of leeway in terms of putting their theoretical
information into exercise and gaining treasured certifiable industrial experience. Throughout the course,
students will be in a position to understand present day commercial enterprise conditions whilst also
having the freedom to clear up the problem using a number of analytical tools.
It is required for the Bachelor of Business Administration (BBA) diploma at Daffodil International
University (DIU) to whole an entry-level function with a standard enterprise association and put together
a report. Under the supervision of Mr. Nurul Mohammad Zayed (Assistant Professor, Department of
Business Administration, Faculty of Business & Entrepreneurship, Daffodil International University), I
prepared this report based on my three-month lifelike work experience and a transient job file titled
"Investment Activities of Islami Bank Bangladesh Limited (2016 to 2020)."
1.3 Origin
My manager has given me permission to make up a temporary position report on "Investment Activities
of Islami Bank Bangladesh Limited (2016 to 2020)" because I am a Business Administration student.
The BBA entry-level position program is a half-way requirement for passing the real exam supervised
by the assistant. This curriculum lasts three months. During this time, I worked closely with Islami Bank
Bangladesh Limited employees. The findings of the investigation conducted during the temporary work
at Islami Bank Bangladesh Limited are presented in this report.
1.4 Purpose
The purpose of this report is to consider the organizations' activities and exhibitions. The report might
include a wide range of topics, but it usually focuses on conveying data with a clear purpose to a specific
audience.

1.5 Objectives
The study's major objective is to analyze Islami Bank Bangladesh Limited's investment activities.
 The other objectives of this study are:
• To describe investment schemes of Islami Bank Bangladesh Limited.
• To show investment approval process of Islami Bank Bangladesh Limited.
• To determine investment performance of Islami Bank Bangladesh Limited.
• To illustrate sector wise investment of Islami Bank Bangladesh Limited.
• To derive few findings on analysis and to suggest few recommendations accordingly.
1.6 Scope of the Study
The study's scope includes a financial performance evaluation of Islami Bank Bangladesh Limited's
investment activities (2016 to 2020).
 The main focus of this report is to analyze:
 General Investment Activities Evaluation
 Ratio Analysis
 Trend Analysis
 Common Size Analysis
1.7 Limitation of the Study
There were some limitations in completing the report with rich resources. Some of the crucial
limitations are-
 The Bank’s policy of not disclosing confidential data & information is a big obstacle in preparing
the report
 Three months is insufficient time to learn about all of a branch's financial activity.
 For this goal, the majority of the data on the connected issue has been kept hidden.

 A single workstation cannot be used to study the banking system in its entirety.
 Collecting all of the actual information from diverse individuals for their job constraint is
extremely challenging.
 Various exercises were tough to understand because some financial fields are not covered by our
curriculum.
 In some circumstances, assumptions are made due to a lack of knowledge. As a result, there may
be some assumptions that are incorrect.
 The bank's website was out of date, making it difficult to gather the necessary information.
 Due to the bank executives' hectic schedules, it was difficult for them to cooperate with me, which
was also a restraint for this report.
 Secondary information regarding Islami Bank Bangladesh Limited and its goods was lacking.
Annual reports, policy guidelines, websites, and other relevant publications do not provide
comprehensive coverage.
1.8 Significance of the Study
This learn about will be useful to the policymakers of the Islami Bank Bangladesh Limited for
decreasing the provider pleasant gap.
It would enable Islami Bank Bangladesh Limited to investigate their current fame in terms of client
care and the range of products and offerings they provide. It will assist them draw close what clients
choose from them and, as a result, discover areas the place they are falling short. In mild of these
findings, Islami Bank Bangladesh Limited can take the quintessential steps to meet the clients'
expectations.
The examination will profit the entire monetary vicinity as it will likewise empower one-of-a-kind
banks to recognize what sort of objects and administrations customers expect from them and what
nature of customer support will instant clients' fulfilment.
This investigation will also advantage financial institution clients. It will aid them in making an
knowledgeable decision about whether or not or now not to pick out Islami Bank Bangladesh Limited
as their bank. This evaluation will encompass a designated discussion of Islami Bank Bangladesh
Limited's considerable range of merchandise and services. This section of the inquiry will resource

purchasers in deciding on the fantastic matters and services from the vast array of selections available.
1.9 Methodology
The planned methodology of the research is given below:
A. Sources of Data
Information concerning the finish of this examination will be gathered from both essential.
Secondary Data:
Optional sources that will be utilized in the investigation incorporate:
i. Internal Sources
 Bank's Annual Report
 Published Booklist of Islami Bank Bangladesh Limited
 Magazine of Islami Bank Bangladesh Limited
 Any information regarding the Banking sector
ii. External Sources
 Different books and periodicals related to the banking sector
 Bangladesh Bank Report
 Newspaper
 Bank website
The central data and information source is expected to be critical, since it would entail speaking with
officials from Islami Bank Bangladesh Limited to obtain detailed information on the innovative products
they offer. The following authorities will be met:
 Branch Sales & Service Manager
 Sales Team Manager
 Personal Financial Consultants
 Service Ambassador

1.10 Definitions of Important Terms
"Investment Activities of Islami Bank Bangladesh Limited (2016 to 2020)" is the title of the study. It
contains the following key terms:
 Bank: In this investigation, the "Bank" will allude to a part of any business bank of Bangladesh.
 Customer: A client is an individual who has a type of record with a broker, such as a store or
current record, or some other similar connection, and as a result, any individual or partnership
can become a client by opening a store or current record, or by accepting a store receipt as proof
of cash left with the investor.
 Customers Service: All help provided by the bank to its clients, including investors and
borrowers, shall be referred to as "client's administration." This includes (a) receiving cash, (b)
encasing checks, (c) collecting checks and other instruments on behalf of clients, (d) giving
advice, (e) negotiating advances, and (f) providing settlement offices. and so on.
 Quality: Quality is the hole between what clients feel ought to be offered and what is being given.
 Types of Accounts: Types of Accounts will include-
i. Savings Account: Conventional, VIP Savers A/C, Youth Savers, A/C, etc.
ii. Current Account
iii. Fixed Deposit Account
iv. Residual Foreign Currency Deposit Account
v. STD Account
vi. Access Account, etc.

CHAPTER 02:
ORGANIZATIONAL OVERVIEW

2.1 Historical Profile of Islami Bank Bangladesh Limited
Islami Bank Bangladesh Limited is a Joint Venture Public Limited Company which is performing its
business in commercial banking business focusing on Islamic Shari'ah with 63.09% foreign
shareholding. It has the largest branch network (total 332 branches) among the private sector Banks in
Bangladesh. It was established on the 13th of March, 1983 as the first Islamic Bank in the South East
Asia with its first Branch named “Local Office” situated at Motijheel, Dhaka (inaugurated on March
30, 1983). It became incorporated as a public limited company under the Companies Act 1913.
The bank is maintaining its business concentrating on the Shari'ah standards of Mudaraba,
Musharaka, Bai-Murabaha, Bai-Muajjal, HPSM, Bai-Salam, Bai-as-Sarf and Ujarah, etc. There is a
Shari’ah Supervisory Committee in the bank which ensures that the activities of the bank are
being conducted on the precepts of Islam.
The shares of the bank are listed with both Dhaka Stock Exchange Ltd. (DSE) and Chittagong
Stock Exchange Ltd. (CSE). Authorized Capital of the Bank is Tk. 20,000.00 Million and Paid-up
Capital is Tk. 16,099.90 Million having 33,686 shareholders as on 31st December, 2017. The bank has
successfully passed 33 years of their journey with 1 crore of customers at present.
2.2 Corporate Structure of Islami Bank Bangladesh Limited
 Name of the Company : ISLAMI BANK BANGLADESH LIMITED
 Legal Status : Public Limited Company
 Company Registration No. : C-10589/485, Dated March 13, 1983
 Bangladesh Bank License No. : BL/DA/4290/83
 eTIN : 376764873732
 VAT Registration No./BIN No. : 000000124-0002
 Line of Business : Banking
 Total Branch : 373
 Sub Branch : 162
 SME/Agriculture Branch : 30

 Zone : 16
 AD Branch : 61
 O¬shore banking Unit : 03
 ATM Booth (own) & CRM : 1752
 ATM Booth (shared) : 12,000+
 Instant Deposit Machine (IDM) : 126
 Sheba Ghar : 47
 Agent Banking Outlet : 2273
 Employees : 18,621
 Directors : 20
 Sponsors : 19
 Placement holders : 17
 Shareholders : 33,869
 MPB holders : 13,974
 Local Shareholders : 57.38%
 Foreign Shareholders : 42.62%
 Foreign Correspondents : 610
 Chairman : Mohammad Nazmul Hassan
 Vice Chairmen : 1)Yousif Abdullah A AlRajhi
2)Mohammed Shahabuddin
 Managing Director : Mohammed Monirul Moula
 Company Secretary : JQM Habibullah, FCS
 Head of Internal Control & Compliance : AAM Habibur Rahman
 Chief Financial Offer : Md. Ashraful Haque, FCA
 Credit Rating Agency : Alpha Credit Rating Ltd.
 Subsidiary Companies : 1. Islami Bank Securities Limited
2. Islami Bank Capital Management Limited
3. IBBL Exchange Singapore Pte. Ltd.
 Statutory Auditors : 1. M/s. Hoda Vasi Chowdhury & Co.
Chartered Accountants
2. M/s. A.Qasem & Co.
 Tax Advisor : M/s. K.M. Hasan & Co.
 Registered O ce : 40, Dilkusha C/A, Dhaka-1000, Bangladesh

 Phone : PABX (88-02) 9563040, 9567161, 9567162
 Mobile : 88-01711435638-9
 FAX : 88-029564532, 9568634
 SWIFT : IBBLBDDH
 E-mail : info@islamibankbd.com
 Website : www.islamibankbd.com
2.3 Vision of Islami Bank Bangladesh Limited
The vision of IBBL is to always concern to attain excellent financial presentation as well as to be
considered a leading Islamic Bank through its status and performance.
 The bank's goal is to set up and maintain cutting-edge saving money advancements, to ensure
the advancement of the monetary framework while focusing on Islamic standards, and to build
up an effective budgetary foundation with experts who are highly motivated and also working
for the general public's advancement, based on commitment, transparency, and trustworthiness
to ensure the soundness of monetary administrations.
 They will endeavor to move funds through of direct venture.
They will likewise attempt to inspire investment uniquely in activities that are bound to result
higher business
2.4 Mission of Islami Bank Bangladesh Limited
Islamic banking want to develop equity and justice in all sector of economic activities through welfare
oriented banking system, by diversifying investment in different developing, medium and less

developing sector of the country want to achieve balanced growth and socioeconomic improvement.
For less income especially small business like in rural areas giving the support by financial services.
 Establishing Three Sector Banking Model
 Transformation to assistance arranged innovation-driven benefit acquiring Bank
 Fast, precise and palatable client assistance
 The balanced and economic development procedure
 Optimum return on investors' value
 Introducing creative Islamic Banking Products
 Attracting and holding top-notch HR
 Empowering genuine helpless families and setting out nearby pay open doors
 Providing support for social advantage associations via activating assets and social
administrations
2.5 Strategic Objectives of Islami Bank Bangladesh Limited
The objective of Islamic Banking is not only to earn profit but to do good and bring welfare to the
people. Islam upholds the concept that money, income and property belongs to Allah and this wealth is
to be used for the goods of the society. The main object of the Islami Bank Bangladesh Limited (IBBL)
had been to offer an interest free banking system in the financial market. Apart from that, the bank
started its operation in the country with a view to realizing the following objectives.
I. To guarantee clients' fulfillment by giving better money related administrations.
II. To guarantee success arranged saving money administrations.
III. To set up a lot of administrative progression and embracing mechanical changes to guarantee
fruitful improvement of an Islamic Bank as a stable money related establishment.
IV. To offer need to the customer’s welfare.
V. To develop as a more beneficial and more grounded bank at the highest point of the managing
an account segment and proceed with stable positions in evaluations, in light of the volume of
value resources.
VI. To assure diversification by Sector, Size, Economic purpose & geographical location
wise Investment and expansion need based Retail and SME/Women entrepreneur

financing.
VII. To invest in the profitable and priority sectors of the economy.
VIII. To be concerned to become an employer of choice and nurturing & developing talent in a
performance-driven culture.
IX. To pay more importance in human resources as well as financial capital.
X. To assure profitable career path, lucrative facilities and good working environment.
XI. To assure zero tolerance on negligence in compliance issues both Sharia’h and regulatory
issues.
XII. To train & develop human resources continuously & give adequate logistics to satisfy
customers’ need.
XIII. To be specific in serving the cause of least developed community and area.
XIV. To encourage team members to take the ownership of every job.
XV. To assure improvement of devoted and satisfied human resources.
XVI. To inspire sound and pro-active future generation.
XVII. To achieve global standard.
XVIII. To strengthen corporate culture.
2.6 Core Values of Islami Bank Bangladesh Limited
Honesty:
 To be straightforward is appointed by the sacred text – They adhere to this worth in the entirety
of our administration arrangements.
 Transparency:
 Remaining straightforward in all demonstrations is righteousness that forms trust - They hold fast
to it.
 Efficiency:

 Efficiency infers flawlessness in any task finished - They endeavor to deliver full fulfilment with it.
 Accountability:
 To be responsible is to be capable or more any doubt - They are obediently there.
 Religiousness:
 IBBL upgrades monetary prosperity concerning the rapture of strict morals.
 Innovation:
 Their minds and eyes are open to the advancement of personal happiness in order to
provide further benefits to those who seek aid.
 Flexibility:
 Flexibility leads to better agreement and greater fulfillment - they prioritize quality.
 Security:
 Customers should feel safe when using any of our products or services, and they continue
to ensure it.
 Technology:
 Innovation is a fundamental in modern life,' they say, adding that they're always looking
for the next step forward in order to provide our consumers with the finest in simplicity.
2.7 Commitments of Islami Bank Bangladesh Limited
 To The Shariah.
 To The Regulators.
 To The Shareholders.
 To The Nation.

 To The Customers.
 To The Employees.
2.8 Code of Conduct & Ethical Principles of Islami Bank Bangladesh Limited
For all directors of Islami Bank Bangladesh Limited, the Board of Directors has adopted the following
code of conduct:
Objectivity:
The bank will maintain a strong standard of objectivity in its everyday financial activities in accordance
with its clients, workers, investors, different banks, and different associations by keeping up with and
ensuring strength and confidence in the financial field.
Just and Equitable:
The bank will have no separation and keep away from all types of inclination in its mentalities towards
representatives just as to its clients.
Honesty:
The bank during its tasks will adhere to the genuineness rule according to clients, workers, investors,
different banks, controllers and partners.
Impartiality:
During banking administration, the bank is fair to all of its customers, regardless of their identification,
religion, financial and social status, or sexual orientation.
Reliability:
The bank must provide clear, believable, and documented facts to its customers throughout
administrations and exchanges while following to the criteria of the corresponding trust; and supply the
client with prompt and comprehensive services.
Transparency:
The bank will inform its clients on the basic privileges and obligations, benefits and risks associated with
the things and services offered to them in an open, effective, reasonable, and clear manner.
Personnel Behaviors:
The bank will keep away from a wide range of practices and applications that might cause unreasonable
rivalry on the work of the faculty.

Customer Complaints:
IBBL will set up a framework to respond to any and all client queries arising from the administrations
provided, as well as inform clients about the framework.
Security:
IBBL will understand the concept of "Safety" as including all measures aimed at ensuring the security
of all and any of the bank's financial assistance mechanisms, while taking into account unique risks for
the services offered to clients.
 Code Of Conduct for The Employees:
 Adhere to the shariah standards.
 Adhere to the disciplinary proportions of the bank.
 During the presentation of obligations, adhere to material laws and standards; inform clients
about the benefits and risks of the things and services proposed to them.
 Offer impartial and reasonable support of the clients getting similar administrations.
 Not to reveal insider data about their clients and banks that they have learned as a result of the
legitimacy of their positions and titles to anyone other than those people and specialists who have
been explicitly approved under legislation.
 Not to cause any deficiency of notoriety of the bank during works and mentalities
 Not to be occupied with any action that can be named private concern.
 Not to act in logical inconsistency to the standards of equity, trustworthiness, genuineness,
dependability and social obligation.
 To help out different representatives for normal purposes through building polite and industrious
correspondence during their satisfaction of obligations.
 Not to utilize the bank's resources and assets ineffectively and outside the assigned reason.
 By utilizing their positions and titles, they are unable to determine any near-home advantages

both from their work opportunities and from the opportunities of their clients.
 To swiftly reject all such benefits offers and to bring such ideas to the attention of capable
specialists and their managers.
 Not to be associated with relations with the clients like getting, being an underwriter and opening
normal records with the clients which don't compare with moral standards.
 Not to accept gifts from current or potential clients, unless they are accepted by the bank's
employees as part of the bank's set-up procedures.
 To be aware of one's responsibilities in relation to the commitments required during the
administrations' exhibition
 Without the bank's approval, no situation in any private or public organization other than
affiliations, establishments, cooperatives, and comparative associations should be expected.

CHAPTER 03:
INVESTMENT PRODUCTS OF
ISLAMI BANK BANGLADESH
LIMITED

3.1 Bank
A bank is a financial institution and a monetary intermediary that accepts deposits and channels them
into lending activities, either directly or through capital markets. A bank connects clients with capital
shortfalls to clients with capital excesses. Because of their fundamental role in the monetary framework
and the economy as a whole, banks are tightly regulated in many countries. The majority of banks use a
system known as partial save banking, in which they hold only a portion of the assets and loan out the
remainder. They are mostly reliant on minimum capital requirements based on the Basel Accords, a
global agreement on capital principles.
3.2 Concept of Islamic Bank
Islamic banks' capabilities and methods of operation are governed by Islamic Shariah guidelines. It, on
the other hand, energises risk allocation between the capital supply (financial backer) and the asset client
(business person). It also aims to increase benefits while adhering to Shariah principles. One of the basic
organized features of Islamic banks in the advanced Islamic financial framework is the collection and
appropriation of Zakat. Islamic banks' most important capability is to invest in their organization's
business. Its range of activities is greater than that of a traditional bank. It's a multi-reason establishment,
basically. Defaulters are not charged additional fees by Islamic banks.The Islamic banks, on the other
hand, lay a greater emphasis on the tasks' appropriateness. When it comes to their clients, Islamic banks
are dealing with accomplices, financial backers, and brokers. An Islamic bank, strictly speaking, cannot
do so.
3.3 Definition of Investment
The term "investment" can be defined in a variety of ways, depending on the hypothesis and standards
used. A term can be used to describe a variety of situations. In any event, the various definitions of
"speculation" are more similar than dissimilar. Essentially, the venture is about using capital to generate
additional cash flow. The venture can also refer to investment capital or purchases made through agreed-
upon use. Contribution, in finance, refers to the purchase of a monetary item or other substantial object
with the expectation of receiving positive returns later on. The fundamental feature of monetary
initiatives is that they provide significant market liquidity. The valuation approach is used to analyze the
worth of monetary speculation. According to business theories, a venture is an action in which a producer
purchases a physical resource, such as stock or production equipment, in the hopes of assisting the
company's long-term success.

3.4 Investment Under Islamic Shariah
Because Islam does no longer distinguish between the religious and the secular, Islamic investments are
a unique type of socially responsible investment.
The sharia Board, a committee of Islamic pupils (jurists) that evaluates economic goods for compliance
with the Law and conducts continuing due diligence on them, is at the coronary heart of the formation
of an Islamic funding policy, whether for institutional or individual investors. The Quran, which Muslims
accept as true with to be Allah's actual phrases as printed to his prophet Muhammad in the seventh
century; the sunnah, which are regulations derived from the prophet's sayings (Hadiths) and actions;
Qiyas, which are scholarly felony deductions; and Ijma, which is the consensus of scholars on a precise
issue. From the viewpoint of personal customer portfolio management, as soon as geared up with Sharia-
compliant products, an Islamic private wealth firm's investment committee would face the equal
challenges as any other, namely, how to develop, implement, and screen an funding policy that is
consistent with a client's objectives. There are in addition problems, inclusive of as the lack of a deep
secondary market for these merchandise and the lack of uniform vetting necessities across the Muslim
world.
3.5 Bai-Murabaha (Contract Sale on Profit)
Meaning of Murabaha
"Bai-Murabaha" denotes an agreement for a predetermined benefit. Bai-Murabaha can be defined as an
agreement between a buyer and a seller in which the seller sells the buyer specific explicit products that
are reasonable under Islamic Shariah and the law of the land at a cost in addition to a predetermined
benefit payable today or at a later date in a lump sum or in installments. The advantage could be in the
form of a fair total or a percentage of the product's cost.
3.5.1 Bai-Muajjal (Deferred Sale)
Meaning of Bai-Muajjal
The Bai-Muajjal can be defined as an agreement between a buyer and a seller in which the seller sells
the buyer specified explicit item that is reasonable under Shariah and local law, at an agreed-upon fixed
price payment in a single sum or fixed portions at a specific fixed future date.

3.5.2 Definition of Shirkatul Melk
The word'shirkat' means 'association.' The interaction is called Shirkatul Melk when at least two persons
supply value, buy a resource, and own the equivalent together, and offer the benefit based on their
understanding and misfortune about their particular value.
3.5.4 Mudaraba (Investment Made by The Entrepreneur)
Definition of Mudaraba
The term Mudaraba refers to an agreement between two parties in which one party pays money to the
other to join in a commercial venture, with the understanding that any profits will be shared in a mutually
agreed-upon manner. Mudaraba is also known as Qirad and Muqaradah.
3.5.5 Musharaka (Partnership Based Investment)
Definition of Musharaka
Musharaka is derived from the Arabic term Shariah, which potential association. A normal Musharaka
change may also be led in an accompanying fashion at a IBBL.
A IIBL is approached with the aid of one, two, or greater enterprise people seeking funding for an
enterprise. The bank, along with different partners, presents the venture with the quintessential funding.
All partners, such as the bank, have the opportunity to participate in the project. The advantages will be
allotted according to a predetermined proportion, which does not have to be equal to the capital amount.
Nonetheless, catastrophes have struck in the equal proportions as the many partners who have
contributed money to the company.
3.5.6 Bai-Salam (Advance Payment)
Meaning of Bai-Salam
Bai-Salam is a phrase used to describe a transaction in which the buyer pays in advance but the
conveyance is postponed till later. In most cases, the seller is an individual or a business, while the
buyer is a bank.
3.5.7 Ijarah
Definition of Ijarah
Ijarah is a contract between two parties - the lessor and the lessee – in which the lessees (Hirer or
Mustajir) have the right to enjoy/reap a specific benefit in exchange for a specific
consideration/rent/wages from the lessor – the owner, according to Islamic Shariah (Muajjir).

3.6 Difference Between Convectional Banking and Islami Banking
Conventional Bank Islamic Bank
I. Conventional banks use man-made concepts to
perform their tasks and operate.
I. Islamic banks operate according to
Islamic Shariah principles, which guide
their roles and ways of operation.
II. The investor may rest easy knowing that the
interest rate on his or her investment is set in stone.
II. Instead of promoting risk-sharing, it
encourages both investors and fund users
to participate in it (entrepreneur).
III. With no limits on profit, it tries to maximize. III. It also has the goal of making as much
money as possible while adhering to
Shariah regulations.
IV. There is no mention of zakat in this document. IV. The collection and distribution of zakat
has evolved into a service- oriented
activity in contemporary Islamic banking.
V. Conventional banks' primary duty is to lend
money and collect interest on
a. it.
V. Islamic banks' primary role is to
participate in joint ventures.
VI. When compared to Islamic banks, it has a smaller
range of operations.
VI. When compared to a traditional bank, it
has a broader range of operations. It
serves a number of purposes.
VII. If a borrower defaults, it has the option to charge
them an extra fee (compound interest).
VII. Islamic banks are forbidden by Islamic
law from charging defaulters any further
fees.
VIII. In many cases, the focus shifts to the interests of the
banks themselves. It makes no attempt to guarantee
development by means of stock ownership.
VIII. It prioritizes the needs of the general
populace. Its ultimate goal is to make
sure that development occurs while also
providing equality to all stakeholders.

Table 01: Difference between the Conventional Bank and Islamic Bank
Source: Office index
3.7 Investment customer services:
Investment is the act of deploying money with the hope and expectation that the owner
would receive a profit. Real or financial assets may be purchased with the money. Real
assets are invested in when funds are used to buy current and fixed assets for use in a
manufacturing process or for trading. The purchase of a legal right to receive income in
the form of dividends or capital gains, however, would be considered to be a financial
investment.
So, the two pre-conditions to investment are:
 Deployment of funds and
 Intention for expectation of profit.
IX. Interest-based commercial banks may borrow more
easily from the money market.
IX. To borrow money from the money
market is tough for Islamic banks because
of Islamic banking's strict rules.
X. An ordinary bank needs to ensure every one of its
stores.
X. Rigorously talking, an Islamic bank can't
do that.

3.8.1 Investment modes:
Islami Bank Bangladesh Limited has three investment modes. In these three modes the all
investment activities are based on it. The modes are as:
3.8.2 Investment products:
The Bank's Investment Policy has the unique feature of basing investments on a profit-
loss sharing structure that complies with Islamic Shari'ah's concepts and principles. The
Bank's Investment Policy places more of an emphasis on achieving social goals and
objectives, such as creating employment opportunities, than on making a profit. The
following investment methods are employed:
Serial No. Name of the product Description of the product
i. Bai-Murabaha A Bai-Murabaha is a contract between a buyer and a seller in which
the seller offers the buyer certain products (allowed by Islamic
Shariah and the law of the land) for a cost plus an agreed-upon profit
that is payable in cash, in a lump payment, or in installments, at any
specified future date.
ii. Bai-Muajjal Bai-Muajjal is viewed as a contract between the Bank and the Client
in which the Bank sells the Client the items it has ordered and
specified for a predetermined price that will be paid in full at any
specified future date or over the course of a specified period in set
installments.
iii. Bai-Istijrar Such a buying and selling arrangement is referred to as "Bai-Istijrar"

when a person continues to receive supplies from a supplier piecemeal
over time, without ever making an offer, accepting one, or negotiating
a price with the provider.
iv. Bai-Salam A deal called a bai-salam occurs when the seller agrees to give the
customer a certain commodity or product at a later date in exchange
for an upfront payment in full.
v. Bai-Istisna A contract between a manufacturer/seller and a buyer wherein the
manufacturer/seller sells specific product(s) after manufacturing them,
as permitted by Islamic Shariah and local law, at an agreed-upon price
payable in advance or by installments over a specified period of time
or on/within a specified future date based on the order placed by the
buyer.
vi. Hire Purchase under
Shirkatul Meelk
In this approach, the bank may provide commodities, equipment, and
implements on a rental basis. The Bank and the client will share
ownership of the tools, equipment, and products, with the client's
portion remaining as a mortgage on the items until the investment
account is closed. However, the client will be permitted to use the
tools for a specific amount of time. After the installments are paid in
full, the client will possess the tools, commodities, and equipment.
vii. Mudaraba A mudaraba is a profit-sharing partnership in which one side
contributes capital and the other contributes labor and skill. "Shahib
al-maal" is the name of the financier; "Mudarib" is the name of the
supplier of labor and skill.
viii. Musharaka The Bank may engage in business with its Client(s) at Islami Bank
Bangladesh Limited (IBBL), provided that the Client(s) and the Bank
each contribute capital in fixed proportions, participate in the
management of the business, share the profit in accordance with their
respective capital ratios or at a pre-agreed ratio, and bear the loss, if
any, in accordance with their respective capital/equity ratios.
ix. Bai-as-sarf Under the terms of the Bai-as-Sarf contract or arrangement, the Bank
buys foreign money from the Client in exchange for a foreign
documentary bill in advance at a predetermined or agreed-upon
exchange rate.
x. Mudaraba NRB
Savings Bond
(MNSB) Scheme
The expats may be enticed to submit their remittances through
banking channels and save their hard-earned money with us in their
deposit accounts if we provide them specific privileges or incentives.
Their savings may aid in the creation of capital that may be invested
in the commercial, industrial, and trade sectors, so aiding in the
expansion and advancement of the nation. .The management has
approved a new deposit product in the name of this goal.

3.8.3 Investment Scheme:
Islami Bank Bangladeh Limited provides some investment scheme for customers for
fulfilling their demand by giving services as:
Serial
no.
Name of the scheme Purpose of investment
i. House Hold Investment Scheme:
Housing is one of a person's essential requirements, according
to the Household Investment Scheme. The country's housing
crisis, particularly in urban areas, is currently posing a major
threat to the middle class. For fixed income categories, Islami
Bank Bangladesh Limited plans to implement the "Housing
Investment Scheme" program.
• Assist low- and medium-income,
trustworthy businesspeople and
professionals with financing for the
purchase of household goods.
• Country's socioeconomic
development through an
improvement in low- and middle-
income people's quality of life
ii. Investment Scheme for Doctors (ISD):
Every parent hopes to pursue their children's further education
at home or abroad so they may be proud of the outcome. With
its investment program for education, Islami Bank Bangladesh
Limited is here to fulfill parents' dreams.
• To pay the tuition fees.
• To pay the Hostel fees.
• Purchase of computer, books
etc.
iii. Transport Investment Scheme (TIS):
The foundation for continuous development through the growth
of trade, commerce, and industry is a reliable and effective
communication network. In this context, demand for water and
land transportation has multiplied across the nation.
Additionally, as the standard of living has improved, so has the
use of modern transportation.
• To assist in the development of
communication system of the country.
•To help overcome the existing
transportation problem.
iv. Real Estate Investment Scheme:
Professionals, service providers, real estate developers, and
other groups of people who are not qualified to use the home
• To build new houses and for
extension/completion of the house already
constructed, commercial building,
shopping complex, flat/apartment etc.

investment scheme's investment facilities will be eligible for
the program.
v. Car Investment Scheme:
Maintaining an automobile is no more a luxury, but rather an
essential part of daily life in order to improve a car's
performance. Islami Bank Bangladesh has introduced a vehicle
purchase investment program in light of this.
• Facility investment to purchase car to the
professionals and businessmen.
• Facilitate to develop life standard of
limited income honest people.
vi. Small Business Investment Scheme:
Islami Bank Bangladesh Limited has designed the scheme
titled, “small Business Investment Scheme” for the small
businessmen and self-employed persons.
• To expand investment facilities for the
small traders and entrepreneurs in urban
and rural areas with a view to raise their
level of income and to improve their
quality of life.
• To extend investment facilities to
those small entrepreneurs who could not
any credit or investment
vii. Agriculture Implements Investment Scheme:
Bangladesh is predominantly an agricultural country with vast
majority of people living in rural areas. Most of our people, for
their living, are dependent on agriculture.
• To create opportunities for self-
employment of unemployed rural youths.
• To help farmers to augment agriculture
production.
• To assist in the introduction and use
of modern technology in the agricultural
sector.
viii. Rural Development Scheme:
Bangladesh suffers from a severe rural-urban economic divide
along with illiteracy, a lack of adequate health and sanitation
services, and a whopping 38 percent of the population living
below the poverty line and 18 percent living in extreme
poverty. The majority of the population lives in rural areas and
the economy of the nation is largely agrarian. A migration of
rural residents to urban regions is caused by the agriculture
sector's inability to offer any more opportunities for work.
• To extend bank investment to agricultural
and non – agricultural sectors in the rural
areas.
• To invest on employment and income
generation activities of the rural population.
• To provide self-employment for
distressed people.
ix. Micro-Industries Investment Scheme:
Bangladesh has been working to increase its overall economic
growth as a developing nation. Lack of business development
and potential entrepreneurs who can open new businesses in the
• To procure capital machinery.
• To purchase raw material.
• To meet a portion of working capital

industrial sector and increase employment possibilities are two
main issues preventing its growth. There are many educated
young people who are unemployed, as well as skilled and semi-
skilled unemployed people, throughout the nation.
requirement.
• Creates income generating employment
opportunities through establishment of new
micro- industries.

3.9 Accept Proposal
For the bank to be satisfied that the client's stream of cash exchange is legal, the client should keep
a current record for at least three months and up to a half year before presenting a proposal. After
running the existing record, he can go to the director and make the proposal. His home loan
property's records are also included in the proposal.
3.10 Verifying Customers
The director will give the venture official documents, such as exchange licenses, contract
properties, etc. The project representative then looks over the documents. At the clients' homes,
directors, assistant managers, and investment officers will inspect contract property.
The director also gives the supporter access to the property records for legal counsel. and real
estate appraisal Any claims of mortgage property will be verified by the backer. The sponsor also
offers a reliable appraisal of the property. Following that, the Manager, Assistant Manager, and
Investment Officer will modify the promoters' viewpoints to reflect their assessments of the current
worth of the home loan property.
3.11 Lease Finance
In order to let clients acquire different types of equipment and hardware without putting up any
assets while still participating in fixed rent rentals, IBBL supplied Lease Finance offices to its
appreciated customers. Fixed rental amounts and schedule can be adjusted to the lease holder's
benefit and financial situation. Near the end of the rental agreement, the clients receive the rental
resources back with an apparent and depreciated value.
Facilities of Leasing
a. Free the Capital tied in capital use
b. Leasing permits using the capital somewhere else to general higher benefits it likewise
lessens cash surge
c. The hardware that rented doesn't show up on the customer's accounting reports, customers
monetary proportions improve
d. To stay away from monetary requirements in capital use
e. Lease rentals are treated as income use and are deductible for charge purposes. This gives

a more prominent tax break in contrast with getting
Item of Leasing
a. Any class of gear and Machinery
b. Office computerization gear
c. Medical Treatment finding
d. Vehicles for transportation and so on
Investment Ceiling
1. For small enterprise: Maximum TK.90,00,000/-
Purpose:
a. Working Capital
b. Capital apparatus
c. Delivery Van/Transport for business reason
d. Re-outfitting office/Business Premises
3.12 Restricted Business
a. Production, Marketing, Trading of alcoholic, opiate and other inebriating medication of
alcohol
b. Production and Trading of anything restricted by the Government
c. Any action not passable by the rule that everyone must follow
3.13Securities
I'm talking about an administrative credit system. There might not always be substantial security,
like a mortgage. There won't be a need for home loans as a result. Security will be explained on a
case-by-case basis in accordance with (one or a few of the accompanying)
a. Registered home loan of land and building.
b. Mortgage/task of ownership right
c. Assignment of safety cash advance lease assuming any
d. Assignment of Trade Receivable not more established than 90 days

e. Hypothecation of apparatus, hardware, vehicles, stock-in-exchange, unrefined
components, work-in-process and completed merchandise.
f. Any different protections to be requested reasonable by the Bank contingent upon the
circumstance like Insurance Guarantee, Corporate Guarantee, Assignment of Contract,
Security Money and so on
3.14 Investment Approval
The approval process must reinforce the segregation of Relationship management marketing
from the approving authority. The responsibility for preparing the investment proposal is rest
with the RM of the Branch as well the corporate Banking Department at head office.

CHAPTER 04:
INVESTMENT PERFORMANCE
ANALYSIS OF ISLAMI BANK
BANGLADESH LIMITED (2016 -2020)
2020)

4.1 Year Wise Investment & Growth Rate of IBBL
Year 2015 2016 2017 2018 2019 2020
Investment (TK
in
Millions)
134116 174196 210045 238654 264268 300617
Growth Rate (%) 30% 20% 13% 10% 13%
Table 4.1: Year-wise Investment & Growth Rate of IBBL
Figure 4.1: Year Wise Investment of IBBL Source: Annual Report of IBBL (2015-2020)
2015 2016 2017 2018 2019 2020
134116
174196
210045
238654
264268
300617
Year Wise Investment
Series1 Series2 Series3

Figure 4.1: Year-wise Investment Growth Rate of IBBL
Interpretation: The diagram shows that the interest during the year has expanded. IBBL
speculation has quickly expanded from TK million 34116 to TK 300617 million somewhere in
the range of 2015 and 2020. Notwithstanding, development in 2016 tumbled from 30% to 20%,
in 2017 from 20% to 13%, and from 2018 to 2019 from 13% to 10%. Moreover, the
development rate increased from 10% to 13% in 2020. From 2015 to 2020, the IBBL speculation
development rate varied. The diagram shows that IBBL absolute speculation is expanding
because of their engaging and adaptable venture bundles. IBBL keeps an all-around
differentiated portfolio to stay away from the danger of a single-industry focus. Presently, banks
are occupied with giving venture and advances in basic financial areas, for example, exchange
finance, business loaning, material, SME, and administration enterprises, among others.
4.2 Year Wise Investment to Deposit Ratio Analysis:
The percentage of trips to the store that are made with an interest in a product is estimated. The
bank is investing in its store as a venture to a greater extent the higher the ratio.
Venture to store proportion = (Total Investment/Total Deposit) * 100
30%
20%
13%
10%
13%
2016 2017 2018 2019 2020
Growth Rate of Investment (2016-2020)

Table 4.2: Year-wise Investment to Deposit Ratio of IBBL Source: Annual Report of IBBL
(2016-2020)
Figure 4.2: Investment to Deposit Ratio of IBBL
Interpretation: IBBL speculation to store proportion has ascended after some time, as
displayed in the diagram above. It was more noteworthy in 2020 than in any earlier year.
Subsequently, while IBBL was more proficient in changing over stores into interests in 2020, the
190564
228798
248324
287936
322383
91% 91% 96% 91% 93%
2016 2017 2018 2019 2020
Investment to Deposit Ratio
Total Deposit Investment to Deposit Ratio
Year 2016 2017 2018 2019 2020
Total
Investment
174196 210045 238654 264268 300617
Total Deposit 190564 228798 248324 287936 322383
Investment to
Deposit Ratio
91% 91% 96% 91% 93%

venture to store proportion varied somewhere in the range of 2015 and 2020. (From 91 to 93 per
cent). IBBL absolute interest in stores is expanding because of its engaging and adaptable
advance bundles. IBBL’s store is additionally expanding without fail. The best speculation to-store
proportion is somewhere in the range of 80 and 90 per cent.
4.3 Mode wise investment IBBL in 2020
Table 4.3: Mode wise investment IBBL in 2020
Mode Amount in Million Taka Percentage of
Investment
Musharaka 601.2 0.20%
Murabaha 6914.2 2.30%
Mudaraba 6433.2 2.14%
Bai-Muazzal 181663.4 60.43%
Hire-Purchase Sirkatul Meelk 78581.52 26.14%
Quard 9439.40 3.14%
Bai-Salam 1082.22 0.36%
Visa card 1262.59 0.42%
Ijarah 1022.10 0.34%
Others 12836.38 4.27%
Total 300617.94 100%

Figure 4.3: Mode Wise Investment of IBBL
Interpretation: Throughout the year, IBBL placed investments totaling Taka 300,617 million into
various speculative accounts. The graph above demonstrates IBBL's propensity for the Bai-
Muazzal speculation mode, which makes up 60% of its whole portfolio (TK 181663 million).
Musharaka further acquired the final 1% of resources. Under the IBBL project's circulation, a
comparable condition on pay earned through various speculative methods is offered in 2020.
4.4 Classified Investment as a Percentage of Total Investment:
Table 4.4: Year Wise Classified Investment as a Percentage of Total Investment
0%
2%
2%
61%
26%
3%
1%
1%
0%
4%
Percentage of Investment
Musharaka
Murabaha
Mudaraba
Bai-Muazzal
Hire-Purchase SirkatulMeelk
Quard
Bai-Salam
Visa card
Ijarah
Others
Years 2016 2017 2018 2019 2020
Classified Investment (in
MilloinTk)
4591 4919 5147 7684 17163
Total Investment (in MilloinTk)
174196 210045 238654 264268 300617
Classified Investment as a
Percentage of Total Investment 3% 2% 2% 3% 6%

Figure 4.4: Amount &Percentage of Classified Investment
Interpretation: The graph shows that the Classified Investment as a Percentage of Total
Investment. Classified Investment is unstable. However the Classified Investment in 2020 it have
raised by 6% all of a sudden. This indicates that recovery performance of IBBL has been the worst
amount of defaulter in 2020
2016 2017 2018 2019 2020
4591 4919 5147
7684
17163
3% 2% 2% 3% 6%
Classified Investment
Years Classified Investment Classified Investment as a Percentage of Total Investment

4.5 Unclassified Investment as a Percentage of Total Investment:
Table 4.5: Year Wise Unclassified Investment as a Percentage of Total Investment
Figure 4.5: Amount of Unclassified Investment
168395
198829
227771
254120
288592
2016 2017 2018 2019 2020
Unclassified Investment
Years 2016 2017 2018 2019 2020
Unclassified Investment 168395 198829 227771 254120 288592
Total Investment 174196 210045 238654 264268 300617
Unclassified Investment as a
Percentage of Total
96.67% 94.66% 95.44% 96.16% 96.00%

Figure 4.5: Percentage of Unclassified Investment
Interpretation: The diagram portrays how the unclassified Investment proportion shifted over
the direction of the year. It expanded from 94.66 per cent in 2017 to 96.16 per cent in 2019
however at that point dropped to 91.83 per cent in 2019. IBBLs venture execution in 2020 will
be poor, therefore.
4.6.1 Sub Standard Investment of IBBL
Table 4.6.1: Year-wise Sub Standard Investment of IBBL
96.67%
94.66%
95.44%
96.16%
96.00%
2016 2017 2018 2019 2020
Unclassified Investment
Year 2016 2017 2018 2019 2020
Amount of Sub standard 122 308 640 313 1805
Growth Rate 152% 108% -51% 477%

Figure 4.6.1: Substandard Investment of IBBL
Interpretation: : From the table it is identified that in 2017 their substandard investment growth
rate was 55%.Unfortunately in the year 2019 their growth rate is gone to be decreases the rate is
(-51%) because of Covid-19 pandemic. which is very unlucky to the IBBL, so the last years of
2020 are respectably ratio of sub standard rate is increases where the rate is 60%.
4.6.2 Doubtful Investment of IBBL
Table 4.6.2: Year-wise Doubtful Investment of IBBL
122 308
640
313
1805
152% 108% -51% 477%
2016 2017 2018 2019 2020
Sub Standard
Amount of Sub standard Growth Rate
Year 2016 2017 2018 2019 2020
Amount of Doubtful 859 1793 92 1,354 1419
Growth Rate 109% -95% 1372% 5%

Figure 4.6.2: Doubtful Investment of IBBL
Interpretation: As indicated by this table, IBBLs dicey speculation has a development pace of
(- 95%) in 2018, which is lower than in earlier years. Their pace of development shifts. The
development rate in 2017 was 109 per cent, down from 1372% in 2013. Nonetheless, as of late,
their development rate has eased back to 5%, the worlds second least. It is worthwhile to Islami
Bank Bangladesh Limited.
4.6.3 Bad & loss Investment of IBBL
Table 4.6.3: Year-wise Bad & loss of IBBL
859
1793
92
1354 1419
109% -95% 1372% 5%
2016 2017 2018 2019 2020
Doubtful
Amount of Doubtful Growth Rate
Year 2016 2017 2018 2019 2020
Amount of Bad & loss 3610 2818 4415 6017 13939
Growth Rate -22% 57% 36% 132%

Figure 4.6.3: Bad & loss Investment of IBBL
Interpretation: The graph shows that overall Bad/loss and it’s growth rate was increasing. In
2019 it was 36% and which is lowest. Average growth rate of is not satisfactory. In 2020 the
amount of Bad loss is increased. So it is not good for the bank.
4.7 Sector Wise Investment
2016 2017 2018 2019 2020
3610 2818
4415
6017
13939
-22%
57%
36%
132%
1 2 3 4 5
Bad & loss
Year Amount of Bad & loss Growth Rate
Sl. Sector wise Investment 2020
Percentage of
Investment
1 Commercial Lending 63,086 21%
2 Export Financing 7,421 2%
3 House Building Investment 4,017 1%
4 Investment Against Scheme & MTDR 5,292 2%
5 Small And Medium Enterprises 61,921 21%
6 Micro Investment 679 0%
7 Other Investments 15,674 5%
8 Offshore Banking Unit 4,308 1%

Table 4.4.7: Sector-wise investment of IBBL
Figure 4.6.7: Sector Wise Investment
21%
2%
1%
2%
21%
0%
5%
1%
1%
1%
14%
5%
1%
1%
3%
2%
6%
1%
12%
Percentage of Sector Wize Investment
Commercial Lending
Export Financing
House Building Investment
Investment Against Scheme & MTDR
Small And Medium Enterprises
Micro Investment
Other Investments
Offshore Banking Unit
9 Executives & Staffs of IBBL 2,334 1%
10 Agricultural Industries 3,123 1%
11 Textile & Allied Industries 41,971 14%
12 Food & Allied Industries 13,679 5%
13 Pharmaceutical Industries 1,757 1%
14 Leather, Chemical, Cosmetic Etc. 4,216 1%
15 Construction Industries 9,140 3%
16 Cement And Ceramic Industries 5,027 2%
17 Service Industries 16,687 6%
18 Transport And Communication Industries 4,143 1%
19 Other Industries 36,144 12%
20 Total 300,618 100%

Interpretation: The pie diagram above portrays the extraordinary commitment of interest in the
individual area. The Commercial Lending area had the most noteworthy venture of 63,085 dollars
(21 per cent). IBBL contributed 61,920 (21%) in the Small and Medium Enterprises area, and
41,97% in the Textile and Allied Industries area (14% ). IBBL ought to put more in materials and
related ventures. It ought to put more in the drug area because the drug business in Bangladesh is
one of the most encouraging in the country.

CHAPTER: 05
FINDINGS,RECOMMENDATIONS
AND CONCLUSION

5.1 Findings of the Study
IBBL is committed to providing Islamic Shariah-based banking services that are transparent and
efficient in this competitive environment. This report contains both positive and negative
findings. So, I disclose the findings below-
 Total investment gradually increased which was tk 300617 million. In 2020 investment
increased by 13% from 2019.
 From 2017 to 2018 sub-standard loan was increased by 12%.
 The standard investment was 60% in 2020. In year 2018 it was 12%.
 The doubt full investment is also fluctuating. In the year 2018, it was the lowest but in 2017
it was the highest which was 85%.
 The bad loss is increasing every year which may lead to default. In 2016 it was the lowest
than the other four years.
 IBBL invested tk 63,085 million in the Commercial Lending sector. They invested 1% in
Pharmaceutical Industries, 1% in Transport and 1.5% in Communication Industries. They
invest 1% in Agricultural Industries, which is comparatively low.
 Investment to Deposit Ratio of IBBL in 2020 is 93% which is good. An ideal Investment to
Deposit Ratio is between 80%-90%.

5.2 Recommendations
In recommendations, certain suggestions can be followed. They are given below.
 Although the amount of deposit increased, its growth rate decreased in the last four years
compared to previous year of analysis. Therefore, the bank should focus on increasing the rate of
growth of deposits by creating new schemes, opening branches and developing relationships
with customers so that more funds can be made available for investment.
 The amount of classified investment has risen. That happens due to an increasing amount of sub-
standard, doubt full and bad or loss investment. The bank should be conscious about investing
in classified investment window. The bank should develop a strong monitoring and evaluation
cell so that risk can be minimized and the highest return can be achieved.
 In 2020, the standard investment was 60%. It should be between 70% and 75%.
 Islami Bank Bangladesh Limited should focus on Pharmaceutical Industries, Transport and
Communication Industries and Agricultural Industries.

5.3 Conclusion
Each association should have an objective to accomplish. To accomplish that objective
association should fix its vision and mission. As indicated by vision and mission, an association
can satisfy its objective. Clients are at the focal point of that mission and vision for monetary
organizations like Bank. By breaking down the fiscal reports too as the proportions, one might
say that Islami Bank Bangladesh Limited has been doing admirably in a couple of areas. If we
see the comparative examination of bookkeeping report things, it is created the impression that
the current liabilities are higher than assets.
Because of comparable compensation decree, a huge piece of time the net advantage was
reduced underground bug it was fluctuating over the period. Nevertheless, when pondering
overall total working compensation and net advantage they were extended consistently. In case
of standard size close to the assessment of financial record things, it is made the feeling that the
endeavour was in lessening design and the liabilities were in the growing example. The most
liquid asset cash was lessening and settled assets were growing over the periods. The liquidity
extents of Islami Bank Bangladesh Limited were extended by far most of the events which are
helpful for the bank. If we see the benefit position of the bank, it can without a very remarkable
stretch be said the Profit Margin, Return on Assets and Return on Equity were not too incredible
and its example was diving.
We can see the EPS extent of Also when we inspect the dissolvability extents, we can express
that Islami Bank Bangladesh Limited should put forth a valiant effort to keep up their utilization
extents as all of these extents shows that they have a high use and, in this manner, they
furthermore have a higher risk. Other than this, they need to grow the proportion of significant
worth capital as an exorbitant measure of utilization may be connected with more peril and
besides, it exhibits the bank's cash related inadequacy.
Islami Bank Bangladesh Limited is one of the prestigious banks among third era's banks. It is
contending with numerous different banks and new banks are going to come. Thus, it should
confront intense contests to endure. The significant errand for banks to make due in this cutthroat
climate is dealing with its resources and liabilities significantly and obtaining new trend-setting
innovation to chop down its working cost giving an approach to more benefit. This benefit will
come, in case there are enormous corporate clients. These clients will stay with the bank if
administration quality is unrivalled. So Islami Bank Bangladesh Limited should guarantee
quality help in every branch. For quality assistance, Islami Bank Bangladesh Limited should take
care of the issues of their clients. Every and senseless error can ruin their business.

References
Amin, R. (2017), Alternative Delivery Channels of Banking Institutions in Bangladesh:
Diffusion, Challenges, and Opportunities, Moldova, Germany: LAP LAMBERT
Academic Publishing.
A way to Islami Banking, Dr. Mohammed Haider Ali Miah, 2008 Edition.
Dr Mahmod A; Prof. Ahmed J.U. and others (2008) Tex Book on Islamic Banking, 2nd
edition, Dhaka, Bangladesh: Islamic Economic Research Bureau.
Islami Bank Training and Research Academy (IBTRA) – Hand Book, Note and Islami
Bank Yearly Dairy .
Islami Bank Bangladesh Limited, Bangladesh. (2016-2020). Financial Highlight.
Annual Report-2016-2020. Dhaka, Bangladesh: Islami Bank Bangladesh
Ltd.Publication.
MD. Nurul Alam, (2004) “Islamic Banking In BD-A case study on IBBL”. International
Journal of Islamic Financial Services.
Shahinur, Shafiul, Morshedul, (2016), “Investment Approval Process of Islamic
Banking”. International Journal of Business & Economic Research.

Investment Activities of Islami Bank Bangladesh Limited

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