Introduction

Allah has forbidden investing of earning on the basis of interest (riba). It means interest (riba) is
harem according to Quran and Sinnah. So every sort of transaction must be free from riba. But
not only in Bangladesh but also over the world all the banks are working basins on interest. As it
is haram in Islam the Muslim scholars thought a plan to establish a banking system that is free
form interest and will work on the basis of profit-loss sharing. Then depending on this thought, it
is decided to establish Islamic banks through the whole world to protect every one form this
curse. So Islamic banks are working on the basis of Islamic shariah that is free from interest.
Genesis and Short History of IBBL:
Islami Bank Bangladesh Ltd. As a first shariah based interest free bank in South- East Asia in
registered in 13th March, 1983 as a public limited company according to company law of 1913.
The 1st local branch of the Bank started its function on 30th March in 1983 at Motijheel of Dhaka.
The bank is formally inaugurated in 12th August in 1983. The authorized capital of the bank is
5,000million taka and paid-up capital is 3,456 million taka. 57.37% of the authorized capital is
foreign and 42.63% of the authorized capital given by the local shareholders.
The corporate Head office of the bank is situated at its own modern building Islami bank Tower
of 17th floor at 40, Dilkusha C/A , Dhaka.
The equity of bank till 31st December , 2006 was at Tk. 10,436 million & which is for at least
9.00% for necessary risk based asset against 9.43% till 31-12-2006. There was 8 zonal office of
the bank throughout the country and there 176 branches. Till 31st December,2006, the total
number of shareholders of the bank was 20,760 and number of the officers and employees was
7,459.

Origin of the Report

This report is originated as the course requirement of BBA program, Department of
Management of National University Bangladesh. As practical orientation is integral part of
BBA program requirement, I was sent to the Islami Bank Bangladesh Limited, At first I report
to IBTRA (Islami Bank Training and Research Academy) for internship training on Islamic
Banking System from January 20, 2016 to January 30, 2016, then they send me to take the
real life exposure of the activities of banking financial institutions at Krishi Market Branch
from 1.2.2016 to 31.1.2016. After that I submitted a report and presentation in IBTRA.
Background of the Study
Any academic course of the study has a great value when it has practical application in the
real life. Only a lot of theoretical knowledge will be little important unless it is applicable in
the practical life. So we need proper application of our knowledge to get some benefit from
our theoretical knowledge to make it more fruitful when we engage ourselves in such field to
make proper use of our theoretical knowledge in our practical life, only then we come to know
about the benefit of the theoretical knowledge. Such an application is made possible through
internship. When theoretical knowledge is obtained from a course of study it is only the half
way of the subject matter. Internship implies the full application of the methods and
Page_1

procedures through rich acquired knowledge of subject matter can be fruitfully applied in our
daily life. Such a procedure of practical application is known as internship. The case study is
titled Credit Functions of Islami Bank. As a student of BBA this study will be more
significant in my practical life. I have worked for two months at Krishi Market Branch of
Islami Bank Bangladesh Limited to complete the internship program as an academic
requirement.
Objective of the Report
Objective of the study acts as a bridge between the starting point and the goals of the study. To
illustrate the objectives properly, presented into two parts:
1. General objective of the report :
The general objective of the report is to complete the internship. As per requirement of BBA
program, a student need to work in a business organization for two months to acquire practical
knowledge about real business operations of a company.
2. Specific objective of the report :
To observe the General Banking operation as an Islamic bank.
To recommend solutions of or solving the problems faced by IBBL in operating as an
Islamic Bank.
Scope of the Report
This report will cover an organizational overview of Islami Bank Bangladesh Limited. It will
give a wide view of the different stages of operational procedure of Islami Bank Bangladesh
Limited, starting from the investment application to investment disbursement and the
comparison between standard and existing credit appraisal system of a Bank. Then the report
covers Foreign exchange operation and General Banking as an Islamic Bank.
Methodology
I have designed this paper as an expletory research paper. Here I have discussed the overall
activity of Islami Bank Bangladesh as an Islamic Bank. I discussed the investment policy and
disbursement procedure and foreign exchange operation and general banking as an Islamic
bank which activities are based on Islamic Shoriah.
Limitations of the Study
Under this study have some limitation which are given below:
1. Lack of sophisticated Knowledge: As a student in research field, I have no experience in
data collection, processing, analyzing, interpreting and presenting.
2. Time lacks: There have no available time on my hand to properly complete this study
program. So I cannot able to conduct with all function within available time.
3. Unavailability and inefficiency to interpret secondary data: From the secondary sources I
have not get available relevant data. Moreover, I have no proper knowledge that to collect
secondary data.
4. Every Company or Bank has some common strategy of secrecy. They didnt want to
provide available data, information, which are harmful for them. So I didnt get sometimes

Page_2

essential data.
5. The employees were always busy on there tremendous workload. So they couldnt extend
there cooperation properly.
6. Finally 2 month is too short to know about the whole Banking system.
Historical Background of Islamic Bank
The history of Islamic Banking could be dividing in two parts. First: When it still remained
an idea, second: When it become a reality by private initiative in some countries and by law
in others. There has always been a desire to establish financial institutions to operate as per
the tents of Islamic Shariah. The first attempt in this regard was made in Pakistan during
1950s as a pilot scheme, but unfortunately it didnt succeed. It was followed by a more
successful venture in the form of a local Bank in Egypt (Myt Gant Savings Bank, July, 1963).
In 1969 Islamic Bank was got up Malaysia through passing an Act in parliament which is
being conducted successfully today. In 1970, King Faisal, The Government of K.S.A, called a
meeting to moderate the banking of Muslim countries in accordance with the loss of Islamic
Shariah. In the light of this purpose, on 18 th December 1973 the decision of setting up an
international Islamic Bank was taken up in the finance ministry of O.I.C, which starts its work
on 20th October 1975 in Jeddah. In 1977, Faisal Islamic bank in Sudan, Kuwait Finance Bank
House in Kuwait, Faisal Islamic bank in Egypt and Jordan Islamic Bank in 1978 was founded.
In 1977, International Association of Islamic bank was founded to create equality among the
Islamic Banks of different countries.
Islamic Bank Bangladesh Limited was incorporated on 13.03.1983 as a public Company with
Limited liability under the companies Act, 1913. The Bank obtained permission to commence
business from 27.03.1983. Islamic Bank Ltd. Is the first interest free Bank in South-East
Asia. The establishment of this Bank has ushered a new era in Bangladesh, the second largest
Muslim country in the world. The bank is committed to help the people in Halal earnings and
Halal investment. All of its activities are run as per Islamic Shariah. The Islamic Development
Bank, some foreign financial institutions of Saudi Arabia, Kuwait, Bahrain, United Arab
Emirate and Jordan also came forward to establish this bank.
The total number of branches of the bank as on 31 st December 1988 stood at 27. The Bank has
taken up an optimality expansion program to open a large number of branches during the
year 1989 in urban and rural areas and it is expected that with the implementation of the
expansion program almost all important commercial places will come under the operational
activities of the Bank.
Mission of Islami Bank Bangladesh Limited
To establish Islamic Banking through the introduction of welfare oriented banking and also
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 development areas of the country, To encourage social-economic enlistment
and financial services to the low-income community particularly in the rural area.
Islami Bank Bangladesh Limited has huge and vast mission and objective.
To conduct interest free banking.
Ensure equity and justice in the field of all economic activities.
To establish participatory banking instead of banking on debtor creditor relationship.
To establish a welfare-oriented banking system.

Page_3

Vision of Islami Bank Bangladesh Limited

Vision of the organization is to always strive to achieve superior financial performance, be
considered a leading Islamic Bank by reputation and performance.
Islamic bank vision to always strive to achieve superior financial performance is considered a
leading Islamic bank reputation and performance. To establish and maintain the modern
banking technology, to ensure the soundness and development of the financial system based
on Islamic principles and to become the strong and efficient organization with highly
motivated professional, working for the benefit of people, based upon accountability,
transparency and integrity in order to ensure the stability of financial system.
Management of IBBL
Islami bank Bangladesh ltd. is being managed by a board of directors comprising foreigners
and local. An executive committee is formed by the Board of Directors for efficient and
smooth operation of the bank. Besides, a management committee looks after the affairs of the
bank. The management and formulation of policy of the bank are vested in the board of
directors, which is comprised of 14 local and 9 foreign directors by virtue of articles of
association, A Bangladeshi director is to be elected as the chairman of the company. To assist
them there is a high powered committee named exclusive committee. There are six members
in this committee nominated by the board of directors. Besides, these are another committee
named management committee consisting of senior most executives of the Bank. There is also
a Shariah council consisting of prominent Alims, Economists and Banker who acts as a
supervisory body over the day to day activities of the bank from the point of view of Islamic
Shariah.
Capital and reserve of IBBL
The authorized capital of the bank is TK. 1000 cores divided into 100000000 ordinary shares
of Tk. 100/ each. The reserve fund has increased during the year from 80 cores to Tk. 1.43
core. Total equity of IBBL is Tk. 17,932.00 million as on 30.09.08. Paid up capital of IBBL is
Tk. 475.20 core (local shareholders 42.64% and foreign shareholders 57.36%).In order to
strengthen the equity base of the bank commiserating with the deposit liability, the Board of
directors very recently has decided to raise the paid-up capital to TK.20 core in two phasesprimarily up to TK.15 core and ultimately to TK. 20 core preparation in this regard are in foot
and it is expected that shares of public subscription shall be floated by June, 1989.
Objectives of IBBL
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.
To offer interest-free banking system in the financial market.
To establish a partnership relationship with customers and to eliminate the idea of the
debtor-creditor relationship of traditional banks.
To establish welfare oriented banking system.
To utilize mobilize savings towards productive sectors.
To investment on profit and risk sharing basis.
Page_4

To invest to those business sectors those are found acceptable from Shariah point of
view.
To accept deposits on profit and loss sharing basis.
To create employment opportunities by investing savings towards prospective
economic sectors.
To extend banking services towards the poor, helpless and low-income group of
people in the society in order to uplift of their standard of living.
To contribute to establishment of a society by equitable distribution of wealth.
To establish justice in trade and commerce in the country.
To develop morals among the people and to establish the shariah in the field of trade
and commerce.
To render services for the economic development of the nation.
To contribute towards establishment of an Islamic Economic System in the Country.

Functions of IBBL
Islamic banks render almost similar services to their customers conventional banks do.
However, differences exist in administering incentives for deposits and charging for capital
investments, in so far as techniques of calculating the incentive or the cost of the capital is
concerned.[1] Like a conventional bank, the Islami bank also accepts deposits from
customers and advances investment. The bank invests its funds for short as well as long term
deposits. The Islami bank also acts as a custodian of its customers and performs all foreign
transactions on behalf of them. The IBBL perform mainly three different types of functions
Banking services, Investment, and Foreign exchange services Banking services comprise
three regular types of operations related to acceptance of deposits in the different customers
accounts as mentioned earlier, as well as, different transactional services to the customers,
safekeeping of personal valuables and securities, collection of bills, agency services, etc. The
bank lends its funds for the rapid growth and development of industrial sectors and the
promotion of trade and commerce in the country. The bank also invests its funds in various
socio-economic schemes such as, Rural Investment Scheme, Small Traders Investment
Scheme, Doctors Investment Scheme, Small Transport Scheme, Small and Cottage Industry
Project, Hawkers Investment Scheme, Household Durable Scheme and Low Cost Housing
Scheme. The third important function of the bank is to render services to customers regarding
foreign exchange transactions plus services to its customers for import and export of different
industrial, commercial, agricultural and other items.

Deposits Products
Islami Bank Bangladesh Ltd gives special importance on savings. The bank mobilizes
deposits through the operation of following account.

Page_5

Islami Banks Product

Deposit schemes
Al-Wadeeah Current Account
Mudaraba Savings Account
Mudaraba Term Deposit Receipt
Mudaraba Special Notice Account
Mudaraba Special Savings (Pension) Account
Mudaraba Hajj Savings Account
Mudaraba Savings Bond Scheme
Mudaraba Foreign Currency Deposit Scheme (Savings)
Mudaraba Waqf Cash Deposit Account
Mudaraba Monthly Profit Deposit Scheme
Mudaraba Muhor Savings Deposit Scheme
Current account is operated on Al-wadeah principle and all other deposit accounts on
mudaraba principle of Islamic Shariah. The bank distributes minimum 65% of its investment
income earned through deployment of Mudaraba deposits among the Mudaraba depositors.
Weight ages of different Mudaraba Accounts
Weight age means preference of one product in comparison to other product. It has giving the
value or importance to the particular mater higher or less than that of other matter. Contact
ratios is 65:35 i.e. depositors=65%, management fees= 20% & reserve fund for off-setting
investment loss= 15%.
SL
No

Particulars of Deposits

Mudaraba Hajj Savings

Provisional Rate
from 01.05.2009
to 31.07.2009

Revised
Provisional Rate
w.e.f. 01.08.2009

Revised
Provisional
Rate w.e.f.
01.09.2009

From 11 years to 25
years Term

9.50 %

9.40 %

8.50 %

From 1 year to 10 years

Term

8.50 %

8.40 %

8.20 %

Mudaraba Waqf Cash

Deposit
Account
(MWCDA)

9.50 %

9.40 %

8.50 %

Page_6

Mudaraba
Special
Savings (Pension)
10 Years Term

9.00%

8.90%

8.20%

5 Years Term

8.00%

7.90%

6.90%

10 Years Term

8.00%

7.90%

8.20%

5 Years Term

7.00%

6.90%

6.90%

8 Years Term

9.00%

8.90%

8.00%

5 Years Term

8.00%

7.90%

6.90%

5 Years Term

9.50%

9.40%

7.50%

3 Years Term

8.50%

8.40%

6.50%

36 Months

9.50%

9.40%

8.00%

24 Months

8.50%

8.40%

7.00%

12 Months

7.50%

7.40%

6.00%

6 Months

7.00%

6.90%

5.50%

3 Months

6.50%

6.40%

5.00%

5.50%

5.40%

4.50%

Mudaraba
Muhor
Savings Account

Mudaraba Savings Bond

(MSB)

Mudaraba Monthly Profit

Deposit
Scheme
(MMPDS)

Mudaraba Term Deposits

Mudaraba
Account

Savings

For Customers
For Banks
9

2.00%

Mudaraba Special Notice

Deposit
For Customers
For Banks

4.00%

3.90%

3.00%
1.50%

Updated on: 10th Sep 2010

Page_7

Islami Bank Bangladesh Limited at a glance

Corporate Information
(As on June 30, 2010)
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. 7,413.00 million

Deposits

Tk. 265,193.00 million

Investment
(including Investment in Shares)

Tk. 255,178.00 million

Foreign Exchange Business

Tk. 277,739.00 million

Branches

Total number of Branches

244

-Regular Branches

224

-SME Service Centers

20

Number of AD Branches

43

Number of Shareholders

52164

Manpower

9588

Some extra ordinary features of Islami Bank Bangladesh Limited

It is a first interest free commercial Bank based on Shariah in South-East Asia.
Pioneer of welfare banking. [2]

Page_8

It is a Multi-national Bank. The partnership of this Bank belongs to IDB, The Al-Rezi
of Saudi Arabia and many socio economic Government and non Government
institution of Middle East.
It possesses the top level among the banks, which conduct foreign trade.
It is proclaimed VIP standard because of paying more tax by the Government.
It has been awarded the best bank of Bangladesh in 1999 and 2000 by the famous
magazine of U.K Global Finance.
It is one of the top banks among the 2000 international Bank.
It is one of the best banks among the five hundred Asian banks.
It is one of the top Banks in the rating of CAMEL.
It is using computer swift, web site, e-mail, and other sophisticated modern
technology.
It has arranged to start ATM in the selected branch very soon.

Total equity position

Particulars

2006

2007

2008

2009

2010

Total
Equity

6,691.12

8,331.14

10,435.96

14,957.74

18,572.00

Analysis: Total equity position of the IBBL bank is good enough. From 2004 to 2005 it is an
increasing trend. It indicates that bank uses more equity to meet the business needs which
implies that shareholders provide more attention to improve the bank size.
Paid-up capital and reserve:
The Authorized Capital of the Bank is Taka 5000.00 million and Paid-up capital is Taka
3,456.00 million in 2006. The Paid-up Capital was Taka 67.50 million in 1983.
The Reserve Fund of the Bank has been increasing steadily. On 31st December 1983, it was
Taka 0.36 million and stood at
Taka 9642.64 million as on 31st December 2009.
Taka 8453.92 million as on 31st December 2008.
Taka 7624.85 million as on 31st December 2007.
Taka 6551.23 million as on 31st December 2006.
Taka 5450.94 million as on 31st December 2005.
Taka 4329.92 million as on 31st December 2004.
Taka 3280.80 million as on 31st December 2003.
Taka 23852.07 million as on 31st December 2002.
Taka 1998.04 million as on 31st December 2001.
Taka 1759.65 million as on 31st December 2000.

Page_9

Taka 1115.61 million as on 31st December 1999.

Taka 1011.84 million as on 31st December 1998.
Taka 930.17 million as on 31st December 1997.
Map of Bangladesh showing the branch of IBBL
Performance

(Amount in Million Taka)

Particulars

2005

2006

Authorized Capital

3,000
.00

3,000.
00

Paid-up Capital

1,920
.00

Reserves Fund

2007

2008

2009

2010

5,00
0.00

5,000
.00

5,000
.00

10,0
00.0
0

2,304.
00

2,76
4.80

3,456
.00

3,801
.60

4,75
2.00

3,280
.37

4,329.
92

5,45
0.94

6,551
.23

7,418
.04

9,30
8.00

Total Equity

5,266
.47

6,691.
12

8,33
1.14

10,43
5.96

14,95
7.74

18,5
72.0
0

Total Deposits
(Including bills
payable) Gross

70,55
2.65

88,45
2.18

108,
261

132,8
14.00

166,8
12.78

200,
725.
00

Total Investments
(Including Inv in
Share) Gross

62,75
5.90

83,89
3.63

102,
145

123,9
59.00

174,3
65.55

198,
763.
00

Import Business

46,23
7.00

59,80
4.00

74,5
25.0
0

96,87
0.00

137,0
86.00

168,
329.
00

Export Business

21,73
8.00

29,15
1.00

36,1
69.0
0

51,13
3.00

66,69
0.00

93,9
62.0
0

Remittance

16,66
8.00

23,66
9.00

36,9
48.0
0

53,81
9.00

84,14
3.00

140,
404.
00

Total
Foreign
Exchange
Business

84,64
3.00

112,6
24.00

147,
642.
00

201,8
22.00

287,9
19.00

402,
695.
00

Total Income

6,710

8,262.

10,5

14,03

17,69

23,4

Page_10

.44

73

86.7
8

8.30

9.51

54.0
0

Total Expenditure

5,908
.42

6,419.
74

8,42
4.36

11,12
9.63

13,91
8.70

15,1
51.0
0

Net Profit before

Tax

802.0
2

1,842.
99

2,16
2.42

2,908
.67

3,780
.82

6.34
8.00

Payment
Government
(Income Tax)

426.6
1

829.3
5

973.
09

1,490
.12

2,322
.46

3,64
7.00

Dividend

20%
(Stoc
k)

20%
(Stock
)

25%
(Stoc
k)

15%
(Cash)
10%
(Stock)

25%
(Stoc
k)

30%
(Sto
ck)

Total
Assets
(including Contra)

98,04
6.85

125,7
76.94

150,
959.
66

188,1
15.27

250,0
12.79

288,
017.
19

Total
Assets
(Excluding
Contra)

81,70
4.75

102,1
49.28

122,
880.
35

150,2
52.82

191,3
62.35

230,
879.
14

Fixed Assets

2,036
.66

2,552.
70

3,06
7.99

3,724
.69

3,987
.23

4,40
7.00

No. of deposit
account holder

1,994
,266

2,291,
269

2,70
5,18
0

3,207
,131

3,802
,709

4,36
1,89
6

No. of investment
account holder

223,9
54

264,8
63

297,
943

421,7
51

508,7
58

498,
362

Cumulative
amount
of
disbursement from
RDS

2,923
.60

4,216.
77

6,03
3.36

9,303
.12

13,96
9.01

18,7
68

Outstanding
Investment of RDS

570.9
0

789.9
7

1,10
6.00

2,242
.00

2,885
.00

3,01
2

RDS no. of A / C
holder

130,4
65

163,4
65

164,
116

295,0
12

350,2
78

321,
484

RDS no. of village

3,700

4,230

4,56
0

8,057

10,02
3

10,7
63

840

850

884

906

to

Number of Foreign

860

870

Page_11

Correspondents
Number
Shareholders

of

14,1
96

15,8
92

17,201

20,9
60

26,4
88

33,
686

Number
Employees

of

4,67
3

5,30
6

6,202

7,45
9

8,42
6

9,3
97

Number
Branches

of

141

151

169

176

186

196

per

2,74
3

2,90
4

3,013

3,02
0

4,14
7

238

Earnings per Share

(Taka)

195.
52

518.
59

487.57

368.
42

375.
46

56.
29

Market Value per

Share
(Taka)
(Highest)

4,54
8.00

5,110
.00

5,580.
00

4,74
9.00

6,98
6.00

830

Capital
Ratio

9.43
%

9.21
%

9.44%

9.43
%

10.6
1%

10.
72
%

Book value
Share
( Taka)

Adequacy

General Banking Operating Of IBBL

Types of accounts in IBBL
A bank is essentially an intermediary of short-term investment/fund. It cans carryout
extensive lending / investment operations only when it can effectively mobilizes the saving
of the community. A good bank is on who effectively mobilizes the saving of the
community as well as makes such use of savings by making it available to productive and
priority sector of the economy thereby fostering the growth and development of the nations
economy.
Accounts are open under the following two models:
Al Wadeeah (Current Account)
Al Mudarabah (Deposit Account)
1. Al Wadeeah (Current account):
The word AL Wadeeah has been derive from the Arabic word Wadeeah which means to
keep/ to deposit / to give up/ Amanat. As per shariah , Amanat means to keep something
(goods/money/others) to any reliable person / intuition for safe and secured preservation of
the same keeping its ownership unchanged and which will be returned to the owners of the
fund on demand as it is /in original shape. In case of Amanat Bank/ any other institution
can not use, invest and amalgamate the funds without the prior permission of the owner of
the Amanat.
The depositor can deposit any amount in this account
The deposit can withdraw any amount by cheque
No profit is allowed in this account
The depositor shall also no bear any loss
Page_12

Cheques, bills etc collected in this account against commission

Govt. excise and incidental charge realize from this A/C as per rule
2. Al Mudaraba (Deposit account):
The word Mudaraba derive from the Arabic word Darb/ Darabun, Literally it means
movement to earn profit (munafa). It is a form of partnership where one of the parties
called the Shahib Al Mal provide a specified amount of capital and acts like a sleeping
or dormant partner, while the other party called theMudarib (entrepreneur), provide the
entrepreneurship and management for caring on any venture , trade, industry or service
with the objective the earning profit. The Mudarib is required to work with honesty and
sincerity and to exert the maximum possible care and precaution in the exercise of the
function.
Mudaraba Deposit Product
Short notice Account
Saving Account
Term Deposit Account
Special saving (pension)
Monthly profit deposit
Muhor Saving
Waqf Cash
Hajj Saving
Foreign Currency Deposit
Special Saving (Pension)
Islami Bank Bangladesh Limited, in keeping with its welfare-oriented ideals based on
Shariah Principles, has developed a deposit pension scheme named Mudaraba Special
Savings (Pension) Scheme, in order to mobilize and encourage the middle and lower
middle class professional and service holders to save as per their capacity for their old age
when they will normally retire from their active service life who otherwise do not like to
keep and invest their savings and funds in interest bearing deposit pension schemes. Due to
lack of or limited scope for savings and investment in non-interest bearing schemes, most
of these individuals either consume their savings/funds or spend the same unproductive
expenditures. Thus a substantial amount of Savings/funds remain out of the production
cycle.
The savings/funds of these people can play a vital role in capital formation and as a source
of invisible fund for generation of income and increase of wealth of the individuals and of
the nation. The scheme developed by Islami Bank Bangladesh Ltd. has already been
accepted cordially by the lower and middle income group of people and thus it is expected
to have great prospect in mobilization of small savings and funds for deployment in income
and employment generating activities and business. In view of the above the Bank has
introduced Mudaraba Special Savings (Pension) Scheme.
Amount of deposit installments
Accounts under this scheme may be opened for monthly deposits of Tk. 100/-, Tk. 200/-,
Tk. 300/-, Tk. 400/-, Tk. 500/-, Tk. 1000/-, Tk. 1500/-, Tk. 2500/- and Tk. 5000/- only. The
deposit will be received on Mudaraba Principle.
Opening of account
Page_13

Any bonafide citizen of Bangladesh of eighteen years or above with sound mind may open
account in his name under this scheme by application in Banks printed application form
designed for this purpose. The applicant shall have to be introduced by a bonafide account
holder of the Branch where he intends to open account or any client of any Branch of IBBL
or any respectable person known to the Bank and shall have to give two passport size
photographs at the time of opening the account. This account can be opened in the name of
minor by his/her father/mother/legal guardian giving necessary instruction for the operation
of the account. Account may be transferred from one branch to another branch of the Bank
at the written request of the account holder. Separate account number shall be allotted for
each account. At the time of Opening of the account the client has to give his specimen
signature in a separate card. Account may be also opened by thumb impression in case of
illiterate person. In such a case the introducer has to submit a suitable declaration to the
effect in a form prescribed for this purpose. No cheque book shall be issued against this
account.
Deposit of installment
Under this scheme the depositor has to deposit fixed installment at the rate of his choice
from the options as mentioned above (i.e. Tk. 100, Tk. 200, Tk. 300, Tk. 400, Tk. 500, Tk.
1000, Tk. 1500, Tk. 2500 and Tk. 5000) each month regularly.
Installment must be deposited within 6th to 25th of each month. If the 25th of any month is
a Govt. holiday then installment may be deposited on following working day.
Installment may be also deposited by cheque. In such case proceeds against the cheque
must be collected within the 10th day of the month. If the cheque is dishonored then the
cheque shall be returned to the depositor observing due formalities and the installment shall
be treated as overdue.
Advance Installments may be allowed to be deposited with proper arrangement between the
Bank and the client in this regard.
The depositor may issue written standing instruction for monthly transfer of installment
amount from any other account maintained with the same branch for credit to his MSS
account. In that case the client must ensure sufficient credit balance in his/her Savings or
Current account and he/she has to pay a charge of Tk. 5 only for each such transfer.
Profit sharing and weight age
The Mudaraba Special Savings (Pension) Scheme account holders shall share income
derived from investment i.e., income from the use of the Mudaraba funds in economic
activities permitted by Islamic Shariah. This includes profit, dividend, capital gains, rent
and any other income derived from investment.
The account holders under this scheme along with other Mudaraba depositors shall get
minimum 65% of the income derived from the deployment of Mudaraba Fund in the
investment during any accounting year according to their proportion in the total investment
on daily product basis applying the following weight age:
05 years Mudaraba Special Savings (Pension) Scheme: 1.10
10 years Mudaraba Special Savings (Pension) Scheme: 1.30
Benefits of full weight age with yearly cumulating of profit shall become payable if
withdrawn on maturity. No profit shall accrue if the account is closed within one year. In
cases of premature withdrawal after one year profit shall be payable at the rate applicable
for Mudaraba Savings Deposit. In case of 10 year term MSS Account encashed after 5
years but before 10 years, profit shall be payable at the rate applicable to 5 year term MSS
Account for 5 (five) years and at the rate of Mudaraba Savings deposit for the subsequent
period.
Page_14

Mudaraba Hajj Saving:

Hajj is one of the fundamental worship (Ibadah) of Islam. However, because of the
prevailing socio-economic situation in the country, the people interested to perform Hajj
cannot arrange the
required amount of money at a time to perform Hajj. The desire of many to perform Hajj is
thus never fulfilled. Over twenty five thousand devoted Muslims from Bangladesh perform
holy Hajj every year. Financial solvency and physical fitness are the pre-requisites of
performing Hajj. The majority of the people, however, reach the fag end of their life in
arranging the required amount of money for Hajj. Islami Bank Bangladesh Limited has,
therefore, introduced Hajj Savings Scheme so that persons eager to perform holy Hajj
may build-up savings through Mudaraba Hajj Savings Account.
Salient features
Mudaraba Hajj Savings Account can be opened in the name of the individual only.
Deposits in this account are received on the basis of Mudaraba principle of Islamic
Shariah.
No photography is required to open this account.
The Bank issues pass-book against this account. After the deposit of each
installment, the depositor must ensure that such deposit is recorded in the passbook. If the pass-book is lost, the Bank shall charge Taka 10/- for issuance of new
pass-book.
The account holder must immediately communicate to the Bank of any change of
the address.
Persons eager to perform Hajj within the period of one to twenty five years may
build-up savings to perform Hajj by depositing monthly installment.
Profit shall be disbursed over the deposit on the basis of daily balance by giving
1.10 weight age, which is more than that of 3 year term deposit.
If any depositor intends to perform Hajj before the maturity of deposit, then he can
do so by depositing the balance amount fixed for the year along with his savings in
the Mudaraba Hajj Savings Account.
If any depositor, for some reasons, is unable to perform Hajj and wants to
withdraw the deposited money, he shall get profit over the deposit at the rate of
profit applicable for Mudaraba Savings Account.
Mudaraba Hajj Savings Account can be transferred from one Branch to another
upon application from the depositor on genuine ground.
Money cannot be withdrawn from Mudaraba Hajj Savings Account and as such no
cheque-book is issued.
In a year there shall be 12 installments, 60 installments in 5 years and 300
installments in 25 years.
Regular installment shall have to be deposited within first 10 days of the month.
Advance deposit of investment is acceptable.
If any depositor fails to deposit 3 installments consecutively then his Mudaraba
Hajj Savings Account shall be void and such depositor shall get profit at the rate of
profit given to Mudaraba Savings Account. But if the areas of one or two
Page_15

installments are deposited along with the next regular installment, the account
shall remain operative. But if such irregular practice is repeated within the same
year the account shall become void.
At the end of the period if the total deposited amount including profit becomes less
than the actual expenditure for Hajj in that particular year then the depositor may
perform Hajj by depositing the balance amount.
At the end of the period, if it appears that the actual expenditure for Hajj in that
particular year is less than the deposited amount including profit, then the excess
amount shall be refunded.
In case any depositor under Hajj Savings Scheme fails to perform Hajj in the year
of maturity and desires to perform Hajj subsequently, he may be allowed the
benefit of Hajj Savings Account up-to the date of maturity and for the subsequent
period till performance of Hajj at Mudaraba Account rate of profit.
All categories of employees of Islami Bank Bangladesh Limited are eligible to
participate in this Scheme.
The Bank, at any time, may modify, revise and cancel, amend and rescind any rule
of this account and the depositor shall be bound to abide by them.

Mudaraba Monthly Profit Deposit Scheme:

There is a substantial demand of monthly profit paying long term deposit schemes among
the retired service holders and wage earners residing abroad who want to help their
dependants and relatives by contributing a certain amount of money on monthly basis from
the profits of their one-time deposit with the bank. Again there are persons who want to
meet the day to day expenses of their families out of the monthly profits that may be
received on their long-term deposits. Trusts and Foundations who desire to offer monthly
scholarship and stipends to the students from the monthly generated profits of their funds
deposited on long term basis with banks and parents who want to bear the educational
expenses of children from the monthly profits of their savings are also very much interested
for such a monthly profit paying deposit scheme.
Islami Bank Bangladesh Limited, as a pioneer of welfare banking, is receiving demands
from the vast majority of our clientele and many other Shariah abiding people for
introduction of attractive monthly profit based deposit schemes on the basis of Islamic
Shariah so as to encourage them to meet their above needs out of the earnings of their
deposits.
Considering the above aspects and prospects Islami Bank Bangladesh limited has launched
a new deposit product under the name and style Mudaraba Monthly Profit Deposit
Scheme in accordance with the principles of Islamic Shariah.
Term:
The Deposit shall be for a period of 5(five) years. The amount is refundable on maturity as
per Mudaraba principle.
Ceiling of deposit:
Under this Scheme Deposits shall be received on Mudaraba principles in the amounts of
Tk.100,000/- and multiples thereof. Specially designed Monthly Mudaraba Profit Deposit
Receipt will be issued there-against.
Payment of profit:
Page_16

The deposits shall receive estimated monthly profit out of the share of investment income
calculated on the basis of the weight age determined for such deposits and to be adjusted on
completion of each accounting year and declaration of final rate of profit.
Opening of account:
Any bonafide adult citizen of Bangladesh with sound mind may open this account
in his/her name or in the name of his/her dependants in any of the Branches of the
Bank by application in Banks printed Account Opening Form designed for this
purpose. The depositor will be issued a specially designed Receipt for the deposit
under the Scheme in the same manner as is issued in case of MTDR. This receipt
shall not be transferable.
The depositor shall have to maintain a separate Mudaraba Savings/Al-Wadeeah
Current Account at the concerned branch where the monthly profits on his deposit
shall be credited as per his written request. No separate introducer and photograph
shall be required to open account under the scheme.
At the time of the opening of the account besides filling in the relative Account
Opening Form the client has to give his/her specimen signature in the specific
place of the AOF as provided for the purpose.
No cheque book shall be issued against this account.
Profit Sharing & Weight Age:
The depositor of Mudaraba Monthly Profit Deposit Scheme shall share income derived
from investment i.e. income from the use of the funds in economic activities permitted by
Islamic Shariah. This includes profit, dividend, capital gains, rent and any other income
derived from investment.
The depositor under this scheme along with other Mudaraba depositors shall get the share
of minimum 65% of the income derived from the deployment of all Categories of
Mudaraba Fund in the investment during any accounting year according to their proportion
applying the weight age of 1.05.
Benefits of full weight age shall become payable if withdrawn on maturity. In case of
premature withdrawal before 1(one) year, no profit shall be payable.
In case of pre-mature withdrawal after 1(one) year profit shall be payable at the rate
applicable for Mudaraba Savings Deposit. In such cases excess monthly profits so far paid
shall be adjusted.
Estimated profit calculated on the basis of weight age fixed for deposits under this scheme
shall be payable on monthly basis.
The payment of monthly profit shall start from the subsequent month after a clear minimum
gap of 30(thirty) days from the date of deposit. The monthly profit shall be credited each
month to a separate Mudaraba Savings/Al-Wadeeah Current Account of the depositor to be
opened at the concerned branch for this purpose if not maintained earlier.
Other Terms & Conditions:
Deposits under Mudaraba Monthly Profit Deposit Scheme shall be accepted
strictly on Mudaraba principles of Islamic Shariah and accordingly the deposits so
received shall also be invested as per Shariah principles.
The depositors must preserve the Receipts properly and carefully. In case of loss or
damage of the Receipts, the depositor must inform the Bank immediately for

Page_17

taking necessary precautions. Duplicate receipt may be issued after observing

necessary formalities in that regard as per Banks existing rules.
Profits of any accounting year will be declared after certifying the Accounts of the
Bank by the auditors appointed by the shareholders in the Annual General
Meeting.
If the deposit is withdrawn on maturity of the account but before finalization of the
Annual accounts of the Bank, profit will be paid as per provisional rates. However,
on declaration of final rates of profit for that year, the difference amount between
the provisional and final rates, if any payable, will be allowed to the account
holder on submission of written claim there against.
Profits will be calculated on the basis of weight age pertaining to the particular
deposit.
The Bank reserves the right to change, amend, modify or cancel any rules, terms
and conditions and the client shall have to abide by the same.

Eligibility
This Scheme has been designed for all classes of people married particularly the
professionals & service holders creating an opportunity for them to save in monthly
installments according to their capability for rectifying their marriage life and to protect the
human right of the women.
Objectives:
To help the people raising awareness about Muhor, a basic Islamic principle.
To help the women protecting their basic rights determined by Allah.
Term:
The scheme may be of 2(two) different terms:
5 years
10 years
Amount of deposit installments:
Accounts under this Scheme may be opened for monthly deposits of Tk.500/-, Tk1,000/Tk.2,000/-, Tk.3,000/-,Tk.4,000/- and Tk.5,000/- only. The deposit will be received on
Mudaraba principle.
Opening of account:
Any married bonafide citizen of the country with sound mind may open account in
his wifes name under MMSS by application in Banks printed application form to
be designed for this purpose.
Account under the Mudaraba Muhor Savings Account shall only be opened in the
name of wife.
The applicant shall have to be introduced by a bonafide account holder of the
Branch where he intends to open account or any client of any Branch of the Bank
or any respectable person known to the Bank.
2(two) passport size photographs will be required to open this account.
Account may be transferred from one branch to another of the Bank at the written
request of the account holder.
Page_18

Separate account number shall be allotted for each account.

At the time of opening of the account the client has to give his specimen signature
in a separate card.
Account may be also opened by thumb impression in case of illiterate woman. In
such a case the introducer has to submit a suitable declaration to this effect in a
form to be prescribed for this purpose.
No Cheque Book shall be issued to the account holder before full deposit of
Muhor money.

Profit Sharing And Weight Age:

The Mudaraba Muhor Savings Scheme account holders shall share income derived from
investment made out of the Mudaraba funds in economic activities permitted by Islamic
Shariah. This includes profit, dividend, capital gains, rent and any other income derived
from investment.
The account holders under this scheme along with other Mudaraba depositors shall get
minimum 65% of the income derived from the deployment of Mudaraba Fund in the
investment during any accounting year according to their proportion in the total investment
on daily product basis applying weight age of 1.10 for 5 (five) years term and 1.30 for 10
(ten) years term. Benefits of full weight age with yearly accumulation of profit shall
become payable if withdrawn on maturity.
If the account is matured before declaration of annual final rate of profit for the relevant
year the profit shall be paid to the concerned account as per provisional rate and then the
surplus amount of profit, if any, shall be paid after declaration at the written request of the
account holder (wife).
Mudaraba Savings Bond Scheme:
Savings play an important role in capital formation, income-generation and creation of
employment opportunities and contribute towards the increase in wealth of the individual
and nation through profitable investment.
The people generally try to save a portion of their income with a view to protecting
themselves from future financial hardship and also to enhance their earnings for their own
benefit and the benefit of their family and the nation as a whole. Bangladeshi wage earners
living abroad and the retired service holders desire to invest their earnings and retirement
benefits in safe and profitable investment schemes. Many a people, however, cannot deploy
their fund in business for various reasons. The people of Bangladesh are deeply religious
and committed to Islamic way of life and determined to conduct their economic activities in
accordance with the tenets of Islamic Shariah. Naturally they want to avoid interest in
transaction and business which is forbidden by Islam.
Islam encourages savings, which is the prerequisite for any sustainable economic
development. The saying of Holy Prophet (PBUH) is that poverty leads to unbelief and
therefore, people have been encouraged to save a portion of their earnings to protect
themselves from future financial setback. Islam emphasizes in the cycling of surplus capital
by investing such funds in productive economic activities that will pave the way for
employment, development and progress.
Eligibility
Person(s) aged 18 years and above shall be eligible to purchase Mudaraba Savings Bond(s)
in single name or in joint names.

Page_19

Educational Institutions, Clubs, Associations and other non-trading and non-profit Socioeconomic Institutions shall also be eligible to purchase Bond(s) in the name of the
Institutions.
Guardian(s) shall be allowed to purchase Bond(s) jointly with a minor mentioning the age
of the minor. Payment against such Bond(s) shall be made on the basis of joint signature
after the minor attains majority.
Father/Mother/Legal Guardian shall be eligible to purchase these Bonds on behalf of one or
two minors mentioning the name and age of the minor(s) and also instructions regarding
payment encashment.
Denomination
Mudaraba Savings Bond shall be available in Tk. 1,000.00, Tk. 5,000.00, Tk. 10,000.00,
Tk. 25,000.00, Tk. 50,000.00, Tk. 1, 00,000.00, Tk. 5, 00,000.00 and Tk. 10, 00,000.00
denominations.
Purchase ceiling
Purchase ceiling of Mudaraba Savings Bond is minimum Tk. 1,000.00. Any amount of
Bonds can be purchased subject to availability.
Purchase Procedure
Eligible purchaser(s) shall be entitled to purchase Mudaraba Savings Bonds in single or in
joint names or in the name of Institutions from the Branch of the Bank. The purchaser(s)
shall have to apply in prescribed form of the Bank and fulfill the terms and conditions in
this respect.
Period of Maturity
5 (five) years
8 (eight) years.
Profit sharing & weight age
The Bondholders shall share income derived from investment i.e. income from the use of
the funds in economic activities permitted by Islamic Shariah. This includes profit,
dividend, capital gains, rent and any other income derived from investment
Bondholders shall get minimum 65% of the income derived from the deployment of
Mudaraba fund in the investment during any accounting year according to their proportion
in the total investment applying the following weight ages:
Type of Bonds
Weight age
8 years Mudaraba Savings Bond
:
1.25
5 years Mudaraba Savings Bond
:
1.10
Encashment
For encashment of Mudaraba Savings Bonds, the Bondholder(s) or their nominee(s) [in
case of death of the purchaser(s)] shall have to present the Bond(s) and the related papers in
original duly discharged as per rules, to the Branch of the Bank where from the Bonds were
purchased. The concerned Branch shall verify the signatures and other particulars and if
found in order, then make payment with profit to be calculated on the basis of period
covered at the time of encashment.
Other Benefits
Mudaraba Savings Bonds can be purchased in single name or joint names and there shall be
provisions for nominating nominee(s).
Photographs shall not be required with application for purchase of the Bonds.
Page_20

Mudaraba Savings Bond shall be acceptable as security.

If original Bonds are lost or damaged due to theft, fire etc. there shall be arrangement for
issuance of duplicate Bonds after due verification.
Mudaraba Savings Bond holders along with other Mudaraba depositors shall get preference
in the matter of investment of their deposits over the Banks equity and other cost free
funds.
Income derived from the investments during the accounting year shall at first be allocated
to the Mudaraba deposits and cost free funds (including Banks equity) according to their
proportion in the total investment as per principles of distribution of profit to Mudaraba
depositors.
ATM services facilities
Automated Teller Machine (ATM), has unveiled the horizon of Electronic Banking of 21st
Century. Through ATM, customers can avail non-stop online teller service without going to
the specific branch of the member bank. They can withdraw or deposit cash or cheque as
well as pay utility bills like BTTB, Grameen, AKTEL, City Cell Phone, DESA, WASA,
TITAS etc. with the help of this modern computer controlled machine. The service is now
offered by ETN and eleven member banks including Islami Bank Bangladesh Limited.
Facilities
ATM Card holders can withdraw cash from ATM at any time.
Customers can make transactions from any of the machines with logo E-cash installed at
different places in the city.
In course of time utility bills like WASA, TITAS and DESA etc can be paid through ATM.
Now BTTB, Grameen, AKTEL, City Cell Phone bill can be paid through ATM.
Now IBBL E-cash cardholders can be paid their monthly installment of Mudaraba Hajj
Savings, MSS (Pension), Mudaraba Muhor Savings and HDS schemes of IBBL through
ATM.
The machines are located in convenient places where customers usually deal with money
matters. Therefore, they can easily avoid the risk of cash carrying by using ATM Card.
Customers may know their present balance at any time from the machine.
In course of time, POS (Point of Sale) can be used.
Getting an ATM card from IBBL
A customer having a deposit account with the designated branch of Islami Bank
Bangladesh Limited can get an ATM card. Interested customer would collect ATM Account
Opening Form from the concerned branch and submit it along with the Card Fee of
Tk.500/= (Taka five hundred) only. After 7 (seven) days from the date of application, the
customer would collect the PIN and Card separately from the designated Officials of the
concerned branch and then after 48 (forty-eight) hours, customer can use his Card at any
ATM with logo E-cash. Customers can withdraw any amount multiplied by Tk.1000/- per
instance subject to fulfillment of the above conditions i.e.Tk.1000/=(Taka One
thousand),Tk.2000/=(Taka two thousand), Tk.3000/=(Taka three thousand) and maximum
Tk.5000/=(Taka five thousand) per instance and maximum withdrawal limit Tk.20,000/per day.
Procedure for Cash Withdrawal ATM
Go to any of the ATMs located anywhere within Dhaka / Sylhet / ChittagongCity.
Insert your card into the ATM and type PIN press ENTER.
Select the Cash Withdrawal option by pressing > key
Page_21

Press the > key against your required amount

Collect the money along with receipt
If you want another transaction, press YES or press No to end transaction.
Locker service
Secured Locker Service is provided in some branches of the Bank. Customers may avail
this service and secure their valuables.
Locker size

Yearly Charge (Tk.)

Small

700.00

Medium

1000.00

Large

1500.00

Security Deposit (Tk.)

500.00 (refundable)

Secured Locker Service is available in the following branches:

Branch

No. of Lockers

Branch

No. of Lockers

Head Office
Complex Branch

Gulshan Branch

Farmgate Branch

Dhanmondi Branch

New market
Branch

Uttara Branch

Kawran Bazar
Branch

VIP Road Branch

Sylhet Branch

Khulna Branch

Rajshai Branch

Agrabad Branch

Elephant Road

Chawkbazar

Coxs Bazar

Mouchak

Findings Of The Study

Everybody wants to earn a higher rate of return. Investment is the key point of earning
higher rate of return. To invest money it is essential to look into the financial strength,
efficiency and effectiveness of the company. Whether a project is acceptable or not,
profitable of non-profitable, financially solvent or insolvent are easily determined by means
of study about investment mechanism. So study about investment mechanism helps the
management to plan, control, and co-ordinate and take proper decision. The growth and
expansion in the areas like net profit, total income, total expenditure, total income, total
assets, total fixed assets, employee, branches, deposit etc, and the banking sector has also
given rise to many problems. We also measure the modes of investment of IBBL. After the
analysis we found that the Bai-murabaha & hire Purchase under Sherkatul Melk was
greatly contribution on investment which was more favorable for IBBL.
Page_22

Problems
Many of these problems are affecting healthy growth of the sector and eating up the
potentials the economy as well. Major problems of the banking sector are as follows;
Adequacy of capital: It is a big problem of the banking sector pertains to the inadequacy
of capital. As against a capital requirement of 8 percent equal to the risk weighted assets of
the banks
Lack of adequate training facilities: This is the area, which remains most neglected since
long. Very few banks pay adequate attention to develop their human resources through
internal training facilities even though in public forum they attach importance to it.
Lack of new products: The banks are still found to offer the traditional services, which are
outdated in most cases in view of social and economic changes. New products are very few.
Some of the banks are offering new services, which are in fact in most cases redesigned old
products.
Salary structure: Individual scale & adequate salary facilities to the employees selection.
Business risk
Business risk (BR) is that risk business fails to generate sufficient cash to repay the loan. It
is the most important a security risk because of that if the security can not be realized then
the bank is exposed to business risk. So BR is the vital to banks in all types of risks. BR can
be further subdivided on two sectors like industry risk (IR) and Company Risk (CR).
A (1) Industry risk:
On account of some external factors, a business may fail to repay the loan in due time. This
type of risk is called industry risk. IR has two components i.e. supplies risk and sales risk.
Company risk:
Company risk is the risk when the company fails to repay the loan due to internal reasons.
It comprises two risks such as company position risk and management risk.
Company Position Risk:
A company position risk is the risk when a company fails to repay the loan due to weakness
of the companys position. Company position is the major factor to disburse the loan in
banking sector.
a. Performance risk:
When a company fails to perform enough to repay the loan due to weakness of external
conditions of company it is called performance risk.
b. Resilience risk:
It is the risk of failure due to lack of resilience to unexpected external conditions.

Page_23

Recommendation & Conclusion

Recommendation
Following suggestions are prepared for IBBL:
1. Modern tools & technology should be used.
2. Investment project should be increased
3. Zonal office authority should be take care the medium & small range investment.
4. Investment should be provided in the SMEs sector for developing entrepreneur
investment.
5. Investment power should be decentralized.
6. Managerial efficiency should be protected considering the pre-operational costs of
the bank.
7. Satisfactory fund should be used for purpose of seminar, workshop & training
issues. Better industrial relationship, participatory decision making etc are needed
to improve the high productivity for the bank.
8. Fund should be increased for rural area.
9. To encourage the people for Mudaraba & Musaraka Investment.
10. To increase the women job facilities.
11. To ensure the proper training & guideline to the employee.
12. An easy communication should be established.

Page_24

Conclusion
The newly established IBBL was doing well in terms of deposits, investment, total income,
total assets, total equity, total assets, total employees and expansion of no. of branches in
the different areas at the district level in Bangladesh during 1996-2007. Also Bai-murabaha
& hire Purchase under Sherkatul Melk was the great contribution of investment for IBBL.
But Mudaraba & Musaraka investment should be increased in future, while their position
was lower. For this reason the gradual development and expansions of bank product of
IBBL have been able to win and attract good response among the financial circles of
Bangladesh about the viability of IBBL as an Islamic Bank. IBBL has created the positive
change in business growth & trading growth including import & export earnings. Not only
has that it also changed the traditional banking activities other than that traditional bank.
Practically when all the banks are facing the different problems in the advances & loan
sector, then lending risk analysis has been prescribed as a significant package program to
avoid the various risks in the fund management of the commercial banks in Bangladesh.
Other then IBBL contribute economic growth increased day by day in Bangladesh. So,
IBBL does not face any kind of economic problem. Although it has created vast effect on
economic & development of economy in Bangladesh.

Page_25

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5. Lending Risk Analysis Manual Financial Sector Reform Project, Dhaka,
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