A Presentation on Islamic Bank Bangladesh Ltd.

1. Topic :
ISLAMIC BANK BANGLADESH LIMITED
Group No :07

2. SSubmitted to: Sanjana Hoque
Submitted by:
Serial No ID Name Remarks
12 111 141 183 Farzana Zaman
10
111 141 119
Sharmin Sultana
Sharle
17 111 141 400 Milton Islam
19 111 141 452 Nafisa Jahan
39 121 131 017 Nusrat Mahmud
Ananna
111 141 183

3. WELCOME
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4. TABLE OF CONTENT
Our Team Introduction Overview
Loans Deposits
& Other
Services
SWOT
Analysis
Recent Scams
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ConclusionFinancial
Information

5. 111 141 183 111 141 119
111 141 452
111 141 400
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121 131 017

6. Islami Bank
Bangladesh Limited
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7. Statutes, rules and procedures expressly state its commitment
to the principles of ISLAMIC SHARIAH.
Bans the receipt and payment of interest on any of its
operations.
What is an Islamic Bank?
Goals o Eliminate riba from all sectors of the economy.
o Earn reasonable profit through Halal transaction.
o Create more employment opportunities.
o Ensure equitable distribution of resources.
o Serve all classes of people specially the weaker classes.
o Establish justice and humanity.
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8.  1st ISLAMIC SHARIAH based bank in Bangladesh
 Incorporated in 1983.
 Head Office situated in Dhaka, Bangladesh.
 63.09% foreign shareholding.
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9.  Largest branch network ( total 318 Branches).
 Authorized Capital is Tk. 20,000.00 Million.
 33,686 shareholders as on 31st December 2015.
 It is listed with Dhaka Stock Exchange Ltd. and
Chittagong Stock Exchange Ltd.
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• Islamic Development Bank.
• Dubai Islami Bank.
• Kuwait Finance House.
• Luxembourg Islami Bank.
• Three ministers of Kuwait.
• Al Rajhi Bank.
Major Shareholders

10. 1.Deposit Products: 10; 1119
 Al-Wadeah Accounts: The Bank commits to refund money deposited on the demand of
customers.
 Mudaraba Accounts: The Bank is 'Mudarib' and customers are 'Shahib Al-Mal'. the Bank
invests their deposited money and distributes minimum 65% of investment-income.
2.Investment Products: The Bank invest on the basis of profit-loss sharing system in accordance
with the tenets and principles of Islamic Shari'ah. Following modes are used for investment:
Bai Modes
• Bai- Murabaha.
• Bai- Istijrar
• Bai- Salam
• Bai- Muajjal
Share Modes
• Mudaraba
• Musharaka
Ijara Modes
• Hire purchase under
Shirkatul Melk

11. Rural development schemes:
Differentiated Features Rural development schemes GB/BRAC/ASA/PROSHIKA/CARE/
ODEC/ACTIONAID
Target group Rural people with 0.50 to 1.50 acres of land.
Both men and women are covered. RDS prefers
women.
Rural people with 0.50 acres of land.
Both men and women are covered.
Program Basically micro investment. Micro credit, non formal education, and
water & sanitation.
Criteria Applied for
Selection
Land ownership and permanent residence. Land ownership.
Size of loan Minimum - Tk. 4,000
Maximum - Tk. 50,000
Minimum - Tk. 3,000
Maximum - Tk. 40,000
Sources of fund Member Savings; Depositor’s Savings;
PKSF.
Member Savings; PKSP; International
Donor Agencies.
Collateral Required No collateral except personal guarantee and
savings.
No collateral except personal guarantee
and change documents.
Activities financed Both farm and non-farm activities. Both farm and non-farm activities;
Special emphasis is on non-farm
activities.
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12. 1. NRB(Non-Resident Bangladeshi) Entrepreneurs
Services:
Remittance Card
INVESTMENT SCHEME
FOR FOREIGN EXPATRIATE
MUDARABA NRB
SAVING BOND
• They provide “Islami
Bank Remittance Card” to
send money from
abroad. This card ensures
the Non Residence
Bangladeshi of safe and
quick hassle free money
transfer to their family.
• They try to extend investment
facilities to Bangladeshis (NRBs)
working abroad temporarily or
permanently and remit foreign
currencies through IBBL,
intending to invest in
Bangladesh and to patronize
NRBs to invest in the homeland
and thereby contribute to the
GDP towards growth and
development of the country and
entrepreneurship development.
• The aim of the scheme is to
provide special benefit to the
NRBs to save their hard earned
foreign currencies and To
encourage the NRBs to remit
their money to the country
through banking/ proper
channel
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13. 2. SME Investment: their purpose is To meet Capital Investment for
establishment of Project &To meet working capital requirements. Sme sectors:
Brochure on
NRB services
(in Bangla)
Leflet for NRB in
Bahrain_Representa
tives Md. Golam
Mostafa
Leflet for NRB in
UAE_Representative
s Md. Saiful Alam
Leflet for NRB in
Bahrain_Representati
ves Md. Nasir Uddin
3. Foreign exchange business services:
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14. 4. Locker services: they provide a completely secured facility for safekeeping of precious items,
confidential documents and other valuables.
5. Offshore banking services: Deposit products are-
Investment Products are-
Import
Finance/
facility
Bill Financing
(Mudaraba
Documentary Bill
(UPAS)
Export
Finance/
facility.
Short Term
Murabaha.
Project Finance.
Import
Finance/facility
Al-Wadiah
Current A/C
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15. Financial Information: Five year Performance
Compare Last 2
Years
0
0
1.0975
1.1157
1.0842
1.0067
(0.9742)
1.1228
(0.6369)
(Amount in million Taka)
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16. Trends of Investment:2011 to 2015
322772.83
399930.79
474015.95
564332
629631.27
0
100000
200000
300000
400000
500000
600000
700000
2011 2012 2013 2014 2015
Investment(million Taka)
Investment(million Taka)
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17. Bai-murabaha
62.48%
HPSM
23.36%
Bai Muajjal
6.57%
Bill Purchased &
Negotiation
2.83%
Quard
2.75%
Bai- Salam
1.00%
Mudaraba
0.94%
Musharaka
0.07%
Bai-murabaha
HPSM
Bai Muajjal
Bill Purchased & Negotiation
Quard
Bai- Salam
Mudaraba
Musharaka
Mode wise Investment
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18. Industrial
51%
Trade & Commerce
29%
Real Estate
8%
Agriculture
3%
Transport
1%
Others
8%
Industrial
Trade & Commerce
Real Estate
Agriculture
Transport
Others
Purpose Wise Investment
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19. Strength
• Adequate finance
• Monetary assistance provided
• Barriers of market entry
• General support of
beneficiaries towards IBBL
• Reduced labour costs
• Strong base of well-wishers
• Wider & Countrywide
branch network
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20. 19,1452
 Lack of well-trained human resource
 Insufficient logistic support
 Lacks aggressive advertising
 Lack of motivation
 Weak IT System
 Non-offering special deposit & investment schemes
 Lack of proper automation

21. New arrangement with some Exchange Houses.
Increase in skilled/ semi-skilled expatriates
in various countries.
On-line banking facilities.
Opening branches at the major remittance
receiving localities.
Enforcement of Anti Money Laundering Act.
Floating and attractive Exchange Rate.
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22. 19,1452
 Entering third generation banks to remittance
business
 Unusual exchange rate offered by competitor.
 Aggressive marketing by some banks.
 Operation of New Islamic Banks/ Branch
 Poor salary structure rather than other private
banks

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Recent Scam of IBBL
The situation
• Ananda shipyard was accused for taking bad loans
from 12 banks totaling an amount of 130 million taka.
• And the majority amount of 45 million 630 thousand
taka loan came from Islami Bank Bangladesh Limited.
• Islami bank invested into this project foreseeing a
potential, which was stated in a formal statement of
Islami bank.

24. Result
•There was several claims of money laundering by the Anti-
corruption commission of Bangladesh.
• And this massive amount of money missing would not be
possible without a inside help.
• As Islami bank holds the major shares into this the blames
goes to them.
• This resulted into graft allegation against Islami bank.
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25.  As we already know, Islam is a complete way of
life. 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.. 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
Conclusion
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26. 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.
The rate of return of investment of IBBL is greater
comparing to that of conventional banks.
IBBL has been established with a view to conduct
interest free banking to establish participatory
banking.
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27. Thank you, Any questions?
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