Deposit Products

The Bank mobilises deposits through the operation of the following accounts.

Al-Wadeah Current Account (AWCA) Mudaraba Savings Account (MSA) Mudaraba Term Deposit Account (MTDR) Mudaraba Special Notice Account (MSNA) Mudaraba Hajj Savings Account (MHSA) Mudaraba Special Savings (Pension) Account (MSSA) Mudaraba Savings Bond (MSB) Mudaraba Monthly Profit Deposit Account (MMPDA) Mudaraba Muhor Savings Account (MMSA) Mudaraba Waqf Cash Deposit Account (MWCDA) Mudaraba NRB Savings Bond (MNSB) Account Mudaraba Foreign Currency Deposit Account (MFCD) Students Mudaraba Savings Account (SMSA) Mudaraba Farmers Savings Account (MFSA) (Ready for launching)

Current account is operated on Al-Wadeah Principle and all other deposit accounts on Mudaraba principle of Islamic Shari'ah. The

bank distributes minimum of 65% of its investment-income earned through deployment of the Mudaraba deposits among the Mudaraba depositors.

Investment
The special feature of the Investment Policy of the Bank is to invest on the basis of profit-loss sharing system in accordance with the tenets and principles of Islamic Shari'ah. Earning of profit is not the only motive and objective of the Bank's Investment Policy rather emphasis is given in attaining social goal and objective in creating employment opportunities.

Modes of Investment

Bai-Murabaha Bai-Muajjal Hire Purchase Under Shirkatul Melk Mudaraba Musharaka Bai Salam

Under consumer financing, the Bank finances to the individuals for meeting their personal. family and household needs. The Bank

has taken up various welfare oriented investment Schemes

Investment Scheme

Household Durable Scheme Housing Investment Scheme Real State Investment Scheme Transport Investment Scheme Car Investment Scheme Investment Scheme for Doctors Small Business Investment Scheme Agriculture Implements Investment Scheme Rural Development Scheme Woman Entrepreneurs Investment Scheme Micro Industries Investment Scheme Mirpur Silk Weavers Investment Scheme

Remittance Card Service

Islami Bank Bangladesh Limited has introduced 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.

Benefits

24 Hour Service. Can be received this card from any IBBL branch without any fee. Draw money from any IBBL booth. Card Balance Inquiry from any IBBL booth. Foreign Remittance is deposited in this card. Bank account is not necessary Maximum Tk. 50,000.00 from ATM booth and any number of amount from bank counter can be drawn. Only foreign remittance sender / receiver can take this service of Remittance Card. Utility Bill can be paid by Remittance Card. Balance inquery from SMS or iBanking Service.

Transaction Limit

For Cash Withdrawal from ATM booth maximum amount is Tk. 50,000 in a calendar date. Any number of amount from bank counter.

NRB (Non Resident Bangladeshi) Entrepreneurs Investment Scheme (NEIS)

Islami Bank Bangladesh Limited (IBBL) being a welfare oriented financial institution has been offering a broad spectrum financia

facilities to the business houses and individual clients from the very beginning. It has introduced several investment schemes for

different strata and cross sections of people for their socio-economic uplift and improvement of their quality of living standard. Our

country is fortunate that a lion share of our foreign currency generates from the earnings of expatriates contributing to the Countrys

GDP and foreign currency reserve. But it is discouraging that a major portion of the Wage-earners remittances are spent in

unproductive sector and remain idle and thereby the nation is being deprived from the desired benefit therefrom. With a view to

encouraging the NRBs to invest their hard earned money in the productive sectors/areas for their own benefit as well as for the benefit of the nation as a whole, the authority has been pleased to introduce the subject Investment Scheme.

Objectives

To extend investment facilities to Bangladeshis (NRBs) working abroad temporarily or permanently and remit foreign currencies through IBBL, intending to invest in Bangladesh. country. To promote SME investments To develop rural areas in particular To encourage inflow of foreign remittances through banking channel and to curb money laundering. To invest in productive sectors To create employment opportunities for NRBs on their return & their children. To diversify Banks investment portfolios. To create entrepreneurship development poverty and provide employment opportunities to the youths. socio-economic development of the low income groups. To help invest in growing, thirst and priority sectors.

To patronize NRBs to invest in the homeland and thereby contribute to the GDP towards growth and development of the

To help undertake income generation and labour intensive projects / programmes / schemes with a view to alleviate

To encourage development of indigenous and traditional industries including cottage and handicrafts etc. undertaking fo

Eligibility of the clients:

Non Resident Bangladeshi within age limit of 18 to 60 years.

Bangladeshi citizens resided in abroad for long time, remitted foreign currencies through IBBL channel and now in

Bangladesh.

c. Family members of the NRB i.e. Spouse, Sons and/or Daughters who is/are maintaining A/C with IBBL with the remittance of NRB routed through IBBL.

Purpose of Investment

Establishment of manufacturing/service industries/processing & BMRE thereof Working Capital to run the projects/or any ready projects Trade financing.

Investment Limit

Investment range shall be from Tk.0.05 million to Tk.100.00 million

Period of Investment
Nature of Investment Term Investment Period of Investment Maximum 10 years depending on the nature/need of investment client/business

Working Capital and Trade Financing Maximum 1 (one) year on revolving basis.

Modes of Investment

Bai-Murabaha, Bai-Murabaha (TR), Bai-Muajjal, Bai-Salam, Bai-As-Sarf, Hire-Purchase under Shirkatul Melk (HPSM), Musharaka Mudaraba, MDB.

Equity

Capital Machinery: 80:20 (Bank : Client) Project-Building/Structure: 40:60 (Bank: Client) Murabaha/MPI: 25% (By the client) LC/Bills: 10% (minimum) Transport: 60:40 (Bank: Client) and other terms and conditions as per Transport Investment Scheme (TIS).

Rate of Return

The rate of return shall be 12% or to be determined by the Bank from time to time.

Areas of Investment
Booster Sectors (as declared by the Government):

Electrical and Electronics Software Developing Light Engineering and Metal Engineering Agro-processing/Agri-business/Plantation/Agriculture/Tissue Culture Leather products Knit Wear and Ready made garments Plastic and other synthetics Health Service and Diagnostic Education Medicine/Perfume/Chemicals Designer and Fashion wear

General Sectors:

Crop cultivation/Farming Epi-culture/Seri-culture Poultry/Hatchery Beef fattening Fisheries/Fishing/Fish Canning Agro-Supportive items/Industry Textile and textile products Glass & Glass products Transport & Communication Recreation park Parts of different vehicles. Multimedia/Mass media Household products /Crockeries/Office fittings CNG filling and conversion plant. Silk worm and silk industry Tourism/Hotel Toy Industry Spectacles frame and glass industry Beauty parlour. Rice/Flour Mill /Maize Processing Unit Modernization of shops/business centers Permanent possession of shops/business centers Meat of goat, duck, ram, cow and buffalo marketing and processing Milk processing and marketing Tea production and processing Bio-energy plant/Solar energy plant/any other energy generating local devices Paper/Paper products/Printing

Manufacturing of hydrogenated oil/oil from rice dusts/banaspathi ghee, edible oil & fats/brick manufacturing/aluminum

products.

Engine driven water vehicle Ice industry Flower cultivation and marketing Cattle/animal food Industry Rubber production and marketing Agricultural instruments industry

Other products, Trading and Service Sectors:

Chira, Muri Production, processing and marketing Food production from fruits, processing and marketing corn, Baby food, Stearch etc. Production & marketing of Juice, Jam, Jelly, Tomato Ketch up, Sauce, Achar etc. Spice (Masalla) production and marketing Oil mill, Dal mill etc. Dehydrated fruit canning, packaging, production and marketing. Jewellery Photography Printing press Frozen food/fish processing, preservation and marketing Leather and leather goods production Vegetable preservation and marketing Handicraft and Cottage readymade garments shop, furniture shop and the other business having good demand. Any other products locally produced/manufacturing.

Production of Flour, Bread and Biscuit, Semai, Noodles, Chips, Chanachur, Corn-flakes, Potato flakes, French fry, Pop

Retailers and wholesalers, grocery shop, departmental store, hardware, perfume, restaurant, stationery, pharmacy,

Securities and Collateral

Collaterals security may not be insisted up to Investment of Tk.0.50 million only. and practices.

In case of investment exceeding Tk.0.50 million, collateral security shall have to be obtained as per Banks usual norms

In all cases the following documents are to be obtained:

Personal guarantee of the client. Personal guarantee of spouse/father/mother/sister/brother. In case of self-employment of technical personal, certificates will have to be deposited with the Bank

Post-dated cheques for the whole period on investment mentioning amount of investment shall have to be obtained as per

Banks usual norms and practices.

Other documents as per Banks/requirement/norms and practices.

Mudaraba NRB Savings Bond (MNSB) Scheme

It is an undergoing fact that foreign remittances have been contributing a key role in the country's GDP & Foreign Currency reserve

but it is also true that major portion of the earnings of expatriates are utilized in unproductive sectors, consequent upon which the

nation as a whole is not getting expected benefit therefrom. In case, we allow special privilege/incentive to the expatriates, they may

be encouraged to send their remittances through banking channel and save their hard earned money with us in their deposi

accounts. Their savings may help formation of capital which may be invested in the trade, commerce and industrial sectors and

thereby it may contribute towards the growth and development of the country. With this objective in view, the Management has approved a new deposit product in the name of 'Mudaraba NRB Savings Bond'.

Objectives
The aim of the scheme is to provide special benefit to the NRBs to save their hard earned foreign currencies

To encourage the NRBs to remit their money to the country through banking/ proper channel TTo provide better benefit to the NRBs than that of other deposit products.

Eligibility

Only the Non-Resident Bangladeshis (NRBs) aged 18 years & above who have been serving abroad will be eligible to purchase this Mudaraba NRB Savings Bond. relatives serving/residing abroad. conditions applicable to other deposit products. Remittance. eligible to purchase such Bond. Every bond holder will maintain an MSA or a link account with the branch from where the bond will be purchased.

Family members of NRBs will also be allowed to purchase Mudaraba NRB Savings Bond with the fund remitted by their

An expatriate may purchase Mudaraba NRB Savings Bond in the name of his minor children also as per usual terms and

the time of purchasing of such Bonds Branch incumbent should satisfy himself as to the genuineness of the Foreign

No Company/ Society/ Educational institution/Club/Govt., Semi Govt., Organization/autonomous bodies/NGOs etc. is/are

Denominations

: The Mudaraba NRB Savings Bond shall be of 6(six) denominations in Bangladeshi Currency i. e. i) Tk. 25,000.00 ii) Tk. 50,000.00 iii) Tk. 1,00,000.00 iv) Tk. 2,00,000.00 v) Tk. 5,00,000.00 and (vi) Tk. 10,00,000.00

Term
Term of the "Mudaraba NRB Savings Bond" are as under:

5 Years Mudaraba NRB Savings Bond. 10 Years Mudaraba NRB Savings Bond.

Opening of Account

An expatriate having Bangladeshi citizenship of 18(eighteen) years or above who can enter into contract may open account under

this scheme in his/her name through application in Bank's prescribed Application Form. The applicant shall have to be introduced by

a bonafide account holder/an expatriate account holder of any Branch of IBBL or by the Bangladesh Embassy or any respectable person known and acceptable to the Bank. Introduction by any Officer/Representative of IBBL in abroad is also acceptable.

The NRBs shall have to submit two passport size photographs, Photocopies of the Passport, VISA, Work Permit, etc. a the time of opening of the account. The NRBs may open this account in the name of their father/mother/wife/minor children as per existing norms. The Account shall not be allowed to be transferred from one branch to another branch of the Bank. Separate account number(s) shall be allotted for Bond (s) of separate terms.

Only one account number shall be allotted for more than one Bonds (if any) of the same term purchased at a time.

Acceptance of Deposit

The account may be opened by depositing actual value of the Bond in cash or through Account Payee Cheque/DD/PO. In such

case proceeds against the cheque/DD/PO must be collected within the reasonable time. If the cheque/DD/ PO is dishonoured then

the instrument shall be returned to the depositor observing due formalities and the Bond shall not be issued thereagainst. b) After

opening of the account the respective branch will send an e-mail to the account holder residing abroad with particulars of the Bond observing necessary formalities.

Dealing Branch

All the branches of IBBL will deal with such Bond after procurement of the same from the E&CSD, Head Office, Dhaka.

Ceiling

An expatriate Bangladeshi may purchase such Bond for minimum Tk. 25,000/-& upto the capacity of the applicant/investor/purchaser maintaining above mentioned denomination/ criteria.

Nomination

The Bond holder(s) may nominate one or more persons as his/her nominee(s) to receive the proceeds of the Bond(s) in nomination shall be fixed at the time of opening of the account.

case of his/her death during the currency of the term. In case of more than one nominee, respective share in the

Minors also may be named as nominee. In such case he may also give written instruction as to who is to receive the guardian of the nominee(s) approved by the court.

amount in the event of his death before attaining majority of the nominee(s). Otherwise, payment will be made to the lega

The Bond holder may at any time nominate a new nominee(s) canceling the previous nominee in black and white. account, the nomination shall be treated as automatically cancelled.

In the event of death of the nominee during the life time of the depositor and before the withdrawal of the balance of the

e) The nominee(s) shall be entitled to receive the money of the account according to apportionment only after the death o settled at the branch level.

the depositor. In such case there shall be no need for Succession Certificate issued by the Court and the matter shall be

The nominee has to submit the under-mentioned papers to receive the balance of the account:

Application of the nominee / nominees / nominated guardian.

Death Certificate regarding the deceased Bond holder. If the Bond/account holder dies abroad then the death certificate

must be countersigned by the respective High Commissioner / Ambassador /authorized officer of Bangladesh High Bangladesh.

Commission/Embassy and that should duly be attested by the authorized officer of the Ministry of Foreign Affairs

Identification Certificate in favour of the nominee, nominees by two valued clients or two officers of the Bank or from the Chairman or Counselor of local U.P/Municipality. U.P/Municipality Chairman/ Counselor. acceptable to the branch.

Passport size photograph of the nominee/nominees or nominated guardian duly attested by the Gazetted Officer/loca

Indemnity bond jointly executed by the nominee/nominees/ nominated guardian along with 2(two) sureties/ valued clients

Closure of the account

The client may, at any time close the account by written application without any Account closing charge and Accoun maintenance fee.

Quard against MNSB

Quard of maximum 90% of the total outstanding amount against MNSB may be allowed as per existing norms applicable for QTDR.

Maintenance and operation of Mudaraba NRB Savings Bond Scheme: Some guide lines thereof.

For the Accounting and operational purposes the following relevant points are to be followed in the respective Books & Registers o the Bank:

Reporting Code in the Clean Cash Book and General Ledger (B-6) as well as in the Statement of Affairs (F-63) to be "10150000" "1100026" Profit paid on MNSB.

Rb) Reporting Code in the Monthly statement of provisional Income and Expenditure (F-l 99) in the Expenditure side to be

Reporting Code of MNSB deposit in the 'Weekly Scheduled Telegram' (F-64-Revised) to be "LAG", "LAO" & "LAP" of the

liability side (i. e. this deposit to be reported alongwith MSS, MTDR, MHSA, MMSA, MSNA and MSB) and Profit Payable alongwith the profit payable amount of MSS, MTDR, MHSA, MMSA, MSNA and MSB.

Amount of MNSB deposit to be reported in the weekly Scheduled Telegram under SI. No. 'C of the liability side i.e

Reporting Code in the 'SBS-1' to be "12911" & SBS-2 to be "151 Rate of Monthly Profit Provision for 5 years term to be "8.40%" and for 10 years term to be "9.00%". year term and 10 year term until computer program is provided.

The Account under the Scheme shall be maintained in the existing Mudaraba Savings Accounts Ledger separately for 5

Account Opening Register (B-l 7) to be used for opening MNSB accounts term wise separately or separate folio may be Account number will be as MNSB 5/1, 5/2, 5/3 etc. and in case of 10 year term, as MNSB 10/1, 10/2, 10/3, etc.

allotted in one Register and number of the account will be provided chronologically as per term, i.e. in case of 5 year term

Procedure for maintenance of provision of the Scheme will be as under

2 (two) separate folio, one for MNSB-5 year and other for MNSB-10 year term shall be allocated in Mudaraba Term

Deposit Register (B-23) which is being used by the Branches as TDR Profit Provision Register. Daily consolidated

Credit/Debit (if any) shall be recorded in respective folio. Grand total of balances of both the terms must agree with the No. "10150000").

total balance of Mudaraba NRB Savings Bond Scheme (MNSB) reported in the Clean Cash Book & General Ledger (Code

Reporting Code in the Monthly statement of provisional Income and Expenditure (F-l 99) in the Expenditure side to be "1100026" Profit paid on MNSB.

In order to make provision of profit, daily products of the balance of each term shall be added separately at the end of each

month and profit at the above provisional rate shall be calculated on the product so arrived at. Then total amount of profi

for both the terms so worked out shall be debited to "Expenditure Account: Profit paid on Mudaraba NRB Savings Bond Account-MNSB" by passing voucher.

Scheme (MNSB)" (Code No. "1100026") in the Income & Expenditure Register (B-7) and be credited to "Profit Payable

Similarly, Term-wise consolidated position of MNSB profit payable shall be maintained in a separate section & folio of the

above Register (B-23) to record the amount of provision made at the end of each month and payment made, if any of "MNSB Profit payable Account" in the subsidiary Register.

therefrom from time to time. Grand total of balance of profit payable for both the terms shall always be equal to the balance

The profit will be credited to the respective MNSB account on the date of anniversary and 10% Advance Income Tax on profit shall be realized for ultimate transfer to the Financial Administration Division, Head Office, Dhaka as usual.

The Account under the Scheme shall be maintained in the existing Mudaraba Savings Accounts Ledger separately for 5

year term and 10 year term until computer program is provided.

Account Opening Register (B-l 7) to be used for opening MNSB accounts term wise separately or separate folio may be Account number will be as MNSB 5/1, 5/2, 5/3 etc. and in case of 10 year term, as MNSB 10/1, 10/2, 10/3, etc.

allotted in one Register and number of the account will be provided chronologically as per term, i.e. in case of 5 year term

Rural development

Introduction
Bangladesh with its 38% people living below poverty line and 18% living in absolute poverty is suffering from acute rural-urban economic disparity coupled with illiteracy, lack of proper health and sanitation facilities. The country's economy is basically an agrarian one with vast majority living in rural areas. The agriculture sector is unable to provide any further scope for employment resulting in influx of rural population towards urban areas. Rural areas are characterized by stagnant agriculture and scanty industries. Underemployment and unemployment is a regular phenomenon particularly in rural areas. The vast human resources have remained unutilized due to lack of education, proper training and concerted efforts to help grow the rural economy. It results in uneven distribution of income which causes serious set back in balanced geographical growth as well as growth of GDP. Islami Bank Bangladesh Limited was founded with the major objective of establishing Islamic economy for balanced economic growth by ensuring reduction of rural-urban disparity and equitable distribution of income. In view of the above, Branches of the Bank have been encouraged to invest their deposits in their respective areas and in particular for the economic uplift of the rural people. Accordingly, a Scheme in the name and style of 'Rural Development Scheme' has been introduced in 1995 to cater to the investment needs of the agriculture and rural sector to create opportunity for generation of employment and raising income of the rural people with a view to alleviate poverty. It is treated as first Islamic Microfinance Model in the Country & abroad. Site Map Contact Us Copyright 19832012 IBBL. All rights reserved.

Objectives
The main objectives of the Scheme are:

To extend investment facilities to agricultural, other farming and offfarming activities in the rural areas. To finance self-employment and income generating activities of the rural people, particularly the rural unemployed youths and the rural poor. To alleviate rural poverty through integrated rural development approach. To extend investment facilities for hand tube-wells and rural housing, keeping in view the needs of safe drinking water and housing facilities of the rural dwellers. To provide education and Medicare facilities to the down-trodden people.

Integrated Development approach

The purpose of the Scheme is not only providing Micro Investment facilities to the stake- holder but also ensure various types of facilities & services to the downtrodden people as a part of Integrated Development Approach as well as Corporate Social Responsibility. The following areas have been covered under the Scheme: Humanitarian Assistance Program. Education Program. Capacity building or Training Program. Health & Medicare Program. Environment protection Program.

Target Area
Initially the Scheme was started as a Pilot Scheme in the rural areas of certain districts under the direct supervision of the nearby Branches of the Islami Bank Bangladesh Limited. The Scheme is being gradually extended to all the Districts through different Branches of the Bank.

Purpose, Period and Ceiling of investment

Sl. 1 2 3 4 5 6 7 8 9 Sector of Investment Crop Production Nursery and commercial production of Flowers & Fruits Agriculture Implements Live stocks Poultry & Duckery Fisheries Rural Transport Rural Housing Off-firm activities Duration 1 year 1 year 1 to 3 years 1 to 2 years 1 year 1 to 2 years 1 year 1 to 5 years 1 year Ceiling of Investment(BDT) 25,000/50,000/50,000/50,000/35,000/50,000/20,000/50,000/50,000/Equivalent USD ($1.00=Tk.69.00) 362 725 725 725 507 725 290 725 725

The clients are provided investment maximum of BDT 10,000/-($145) at the first time and the good performers are given enhancement, upon his requirement, by BDT 2,000 to BDT 5,000 in every next term up to the ceiling of a particular sector.

Rate of Return
The rate of return is determined by the authority from time to time. At present, the rate of return is 12.5%. Timely repayment is encouraged by offering 2.5% rebate.

Performance of RDS
Performance of Rural Development Scheme up to June 2010.
Islami Bank Bangladesh Limited launched its Rural Development Scheme (RDS) in 1995. In the mean time, 144 Branches of the Bank have been operating the activities of the Scheme in their respective areas. These Branches are working among the poor in 10,754 villages covering 1,199 unions under 296 Thanas of 61 districts of the country. Present number of members is 5,01,941 since beginning the scheme. The members are provided investment facilities an amount of BDT 28,100.10 million ($ 407.25m) up to 30-06-2010 against which the outstanding was BDT 4,320.41 million ($ 62.61m). Rate of recovery of the Scheme is more than 99%. Besides the regular investment program, we have provided with hand tube-well and sanitary latrine to the successful RDS members on quard from the fund given by Islami Bank Foundation. A total of 7,946 tube-wells & 4,322 sanitary latrines have so far been distributed at a cost of BDT 15.84 million ($ 0.23m) & BDT 4.76 million ($ 0.07m) respectively up to the said date. A brief performance of RDS up to June, 2010 is shown in the following table: Fig. in million Taka ($) Sl. Areas of performance No.&Volume/Amnt. Area Coverage 1 No. of Branches handling the Scheme 177 2 No. of Villages (no. of total village in the country is about 87,000) 12857 3 No. of Districts (no. of total district in the country is 64) 61 4 No. of Centers 22206 5 No. of Groups 132268 6 No. of Members (existing) 608703 7 % of Women members in the Scheme 8 Average no. of members per Centre (expected no. 40) 28 9 No. of Clients (Who availed investment) 382319 Financial Statement (RDS & MEIS) 10 Cumulative disbursement (since inception) 11 Present outstanding 12 Overdue 13 Percentage of Recovery 14 Balance of Members Savings (including Centre Fund) Financial Statement (MEIS) 15 Number of clients under MEIS 16 Cumulative disbursement (since 2005) 17 Present outstanding Manpower Position 18 No. of Field Officers 19 No. of Project Officers 20 No. of Zone Officers

42,285.23 (million) 7072.02 (million) 29.63 (million) 99.58% 1924.74 (million)

39015 2413.57 (million)

1954

Security Requirements
Generally, collateral security is not required against investment under the Scheme, as the Scheme has been drawn taking into account the social welfare objective of the Bank for upliftment of the socially down-trodden and economically backward and weaker section of the population of the society. However, Group discipline should be strictly followed and complied with so that only the right persons are selected and included as members of the Group. Each member of the Group gives personal guarantee for other members of the same Group and the members are jointly and severally liable and responsible for payment of investment.

SME Information
Islami Bank Bangladesh Limited has been working since 1983 in the view to establish a welfare oriented Islami Banking system and also to ensure equity and justice in the field of all economic activities, achieve balanced growth and equitable development through diversified investment operations particularly in the priority sectors and less developed areas of the country and to encourage socioeconomic uplift and financial services to the low income community, particularly in the rural areas. Since inception of the Bank, it has been giving priority in financing SMEs.

Formation of SME Division

The Board in its emergent meeting held on 02.11.2005 approved a memo bearing No. 2005/155 with the following resolution:

Resolved that the investment in Small Enterprise shall be made in accordance with the terms and conditions contained in the Annexed Comprehensive Small Enterprise Investment Policy and SME Division under Investment Wing shall be established with necessary restructuring and duly manning with adequate officials as proposed.

In order to emphasize SME investment, to run its SME functions smoothly and to strengthen the SME activities of the bank, it has created a separate Division namely Small and Medium Enterprise Division in 2009.

Specialized SME Branches

As per guideline and regulation of Bangladesh Bank, the Board of Directors of the Bank has selected a good number of SME prone areas, where Specialized SME/Agriculture Branches are being opening in order to facilitate the potential entrepreneurs in accessing to the finance from Shariah based banking sector. So far 30 nos. of such Specialized SME Branches have been opened and more such Branches shall be opened at the SME prone areas by order.

Eligibility of clients
General eligibility criteria for selecting/investing an SME client are listed below:

Physically capable Bangladeshi national Proprietorship/ Partnership/ Private Limited Company Valid licenses like Trade License, VAT Registration, TIN etc. NOC from Environment Directorate (as applicable) from competent authority Source and capacity of repayment backed by positive cash flow Definite market and prospect of future expansion Clean CIB report Adequate infrastructure facility and manpower with required skill and experience The client must have clear idea about the business and required experience. All other criteria laid down in the Instruction Circular, Manuals of relevant investment product.

Restriction on facility

Any of IBBLs director, employee or their family member holding 5% or more of the share capital of the Small Enterprise The applicant is engaged in any antisocial and/ or anti-state activity The applicant has been declared bankrupt/insolvent/insane by any competent authority of the country

SME Investment
Purpose of Investment

To meet Capital Investment for establishment of Project.

To meet working capital requirements (i.e. Procuring of Raw materials & trade goods, overhead expenses etc.). Other items approved by the Bank and as per norms of the Scheme/Mode etc.

Mode of Investment

Capital Investment: Hire Purchase Shirkatul Melk (HPSM), Musharaka and Mudaraba. orking Capital for all concerns i.e. Manufacturing, Trading and Service: Bai-Murabaha, Murabaha (TR), Murabaha Post Import, Musharaka, Mudaraba, Bai-Muajjal Post Import, Bai-Muajjal, Bai-Salam and Istishna. Specific Modes of investment for the Schemes and other items as per existing norms.

Special Schemes under SME

IBBL has been financing SMEs through the following special schemes under SME besides above mentioned modes and purposes of Investment

Women Entrepreneurs Investment Scheme (WEIS) NRB Entrepreneurs Investment Scheme (NEIS) Micro Industries Investment Scheme (MIIS) mall Business Investment Scheme (SBIS) Transport Investment Scheme (TIS) Micro Entrepreneurs Investment Scheme (MEIS)

In order to strengthen the aforementioned schemes and the schemes to be introduced in future, at least 10-20% growth in terms of exposure has to be achieved per year.

Sanctioning Authority
Sanction of investment under SME shall be done as per existing delegation of authority approved by Head Office for different Nature, Modes and Schemes of investment and as per amendment made/to be made from time to time by Head Office.

SME Sectors
Manufacturing

Enterprise involved in production process viz. food & agro-based, leather, textile, handicrafts, pharmaceuticals, electrica

accessories, recycling etc.

Trading
Enterprises involved in wholesale and retail trading, export and import etc.

Manufacturing

Enterprise providing services to other persons, organizations, viz. telecommunication, transport, information technology, clinics hotel, restaurants, workshops etc.

Size of SME Investment

Category Attributes under the categories Small Enterprise Service Concern Tk. 5 lac to 1 Crore (Excluding land and building including Replacement Cost ) Trading Concern Tk. 5 lac to 1 Crore (Excluding land and building including Replacement Cost ) Manufacturing Concern Above Tk. 50 lac to 10 crores (Excluding land and building including Replacement Cost) Medium Enterprise Service Concern Tk. 1 Crore to 15 Crores (Excluding land and building including Replacement Cost ) Trading Concern Tk. 1 Crore to 15 Crores (Excluding land and building including Replacement Cost ) Manufacturing Concern Above Tk. 10 Crores to 30 crores 100-250 50 to 100 50 to 100 25-99 10 to 25 Total Assets (at cost) And/or total number of employees 10 to 25

(Excluding land and building including Replacement Cost)

If any entrepreneur falls under SE category on the basis any one standard, but the same falls under Medium category on the basis of the other standard, then the enterprise shall be treated as Medium Enterprise.

From the date of circular, cottage and micro enterprises shall be incorporated under the SME Investment Policy & Programmes o Bangladesh Bank. The definitions for Micro Enterprise and Cottage Industries as set by Bangladesh Bank are depicted below:

Category

Attributes under the categories

Total Assets (at cost)

And/or total number of employees

Micro Enterprise Service Concern

Less than Tk. 5 lac (Excluding land and building and including Replacement Cost )

Less than 10

Trading Concern

Less than Tk. 5 lac (Excluding land and building including Replacement Cost )

Less than 10

Manufacturing Concern

Tk. 5 lac to 50 lac (Excluding land and building including Replacement Cost)

10-24 or less

Cottage Industry

Less than Tk. 5 lac (Excluding land and building including Replacement Cost)

Not more than 10 including family members

If any entrepreneur falls under Micro category on the basis any one standard, but the same falls under Small category on the basis of the other standard, then the enterprise shall be treated as Small Enterprise.

Mood & Period of SME Investment

Mode of Investment Working capital Terms Maximum up to 100% of the net required working capital or 75% of the sum

total of inventory and receivables whichever is lower. However, at present, IBBL shall make investment upto 80% of net Working Capital. Capital Investment Maximum up to 90% of the purchase price.

Nature of Investment Term Investment

Period of Investment Mid term: Maximusm 5 (five) years Long term: Above 5 (five) years

Working Capital/Trade Financing Other Schemes/Investment Products

Maximum 1 (one) year on revolving basis As per existing Head Office Circulars.

Locker Service

Our safe deposit locker service offered from select branches gives you a completely secured facility for safekeeping of precious items, confidential documents and other valuables.

Services
o o o o o
Personalised service Facilities to access outside scheduled time Parcel handling Safe custody of goods and bonds/shares Lockers available in various sizes. i.e. Small, Medium and Large.

Terms & Condition

For obtaining a Locker at IBBL you must be an account holder with our Bank. Lockers can be allotted individually as well as jointly. access to it.

The Locker holder is permitted to add or delete names from the list of persons who can operate the Locker and can have

Loss of Key is to be immediately informed to the concerned Branch. For Schedule of Rentals, please contact the branch nearest to you. An individual (not minor), firms, limited company, associations, clubs, trusts, societies, etc may hire a locker.

Locker Service Available @

Head Office Complex Branch Farmgate Branch New market Branch Kawran Bazar Branch Sylhet Branch Rajshai Branch Elephant Road Cox's Bazar Anderkilla Branch Chiringa Branch Gulshan Branch Dhanmondi Branch Uttara Branch VIP Road Branch Khulna Branch Agrabad Branch Chawkbazar Mouchak CDA Avenue Branch Feni Branch

Charges

Yearly Charges: Small- Tk.700/-, Medium- Tk. 1000/-, Large- Tk. 1,500/Security Deposit (Tk.)500.00 (refundable). The rent may be conveniently paid from your deposit account with us. Direct debits for locker rentals from your account rid you of the hassles in writing out cheques.

For more information please contact to your nearest branch.

Online Banking Service

IBBL has introduced its Online Banking service since 2006. Being the largest in online connectivity among all the branches we are capable of providing the better customer service to our clints. Registration is required to get this service. For registration please contact with your branch. It could be mentioned here that Online Banking does not refer to internet Banking. It is basically ANY branch banking.

Services

Cash Deposit Cash Withdraw Fund Transfer Account Statement Balance Inquiry Investment Recovery

Transaction Limit

There will be no limit for Cash Deposit and Fund Transfer. For Cash Withdrawal, transaction limit will be Tk.10,00,000 per day per account.

Charges
For Cash Deposit, Cash Withdrawal and Fund Transfer, charges at the following rates and VAT will be recovered from the Customer's Account:

Within the District:

Cash Deposit / Withdrawal / Transfer Amount Upto Tk. 20,000.00 Above Tk. 20,000.00 Maximum Online Charge

Charges Tk. 15.00 Tk. 15.00 + 0.20 for next per thousand of part thereof Tk. 1,500.00

Inter District:

Cash Deposit / Withdrawal / Transfer Amount Upto Tk. 20,000.00 Above Tk. 20,000.00 Maximum Online Charge

Charges Tk. 20.00 Tk. 20.00 + 0.30 for next per thousand of part thereof Tk. 2,500.00

Within the Divisional City Area:

Cash Deposit / Withdrawal / Transfer Amount Upto Tk. 1,00,000.00

Charges Free. But not more than 2 (two) times in a day.

* Vat will be applicable as per Govt. rule.

For more information please contact to your nearest branch.

This file was last modified on: 20/02/2012

SMS Banking Service

IBBL SMS Banking IBBL has introduced its SMS banking service since 2008. Registration is required . For registration please contact to your branch. SMS Facilities are applicable only for our Online Branches.

Services

Mulitple Account Registration International Push- Pull Facility Account Balance (BAL ) Mini Account Statement (STM) Account Information (ACI)

SMS Format

IBB <space> SERVICE <space> PIN<space> A/C Serial Send to : 6969 (for local clients) +8801714006969 (for international clients)

SMS writing instructions in details

For For Balance Inquiry: This option provides the current balance of the account. To get this service, follow the instructions: single registered a/c:

On Cell phone's message option. Type IBB BAL 1234 send to 6969. For Cell phone's multiple message option. Type registered IBB BAL 1234 1 a/c: send to 6969.

Cell phone's message option. Type IBB BAL 1234 2 send to 6969.

For Mini Account Statement : This option provides the mini statement of the account. To get this service, follow the instructions:

For

single

registered

a/c:

On Cell phone's message option. Type IBB STM 1234 send to 6969. For Cell phone's multiple message option. Type registered IBB STM 1234 1 a/c: send to 6969.

Cell phone's message option. Type IBB STM 1234 2 send to 6969.

For Account Information : This option provides the list of registered accounts for sms. To get this service, follow the instructions:

On Cell phone's message option. Type IBB ACI 1234 send to 6969.

Charges

Till now, no charges required except the normal sms service charge.

For more information please contact to your nearest branch or see the Rules and regulation given overleaf of the SMS Banking Regitration Form.

Internet Banking Service

Islami Bank Bangladesh Limited has been devoted to serving its customers since inception. We are committed to introduce new services and to make existing services faster and better than ever.

iBanking is a cornerstone of our strategy, designed to accelerate our commitment to green banking and to enable customers to do banking at their own convenience.

We have introduced two new services to all iBanking customers that reflect our continuous endeavor to put the strategy into action. Wherever you are, using iBanking now you can

Transfer funds (iTransfer) between IBBL accounts Purchase airtime / Recharge account ( iRecharge) from all mobile operators in Bangladesh, except teletalk.

Services
ACCOUNT SERVICE

Account Balance Account Statement Transaction Summary

TRANSACTIONAL SERVICE

iTransfer (Fund Transfer) iRecharge (Purchase airtime / Recharge account)

INVESTMENT REPORT

Investment Account Statement Customer wise Liability Mode wise Liability Liability at a glance of Party

FOREIGN BUSINESS REPORT

Cost Sheet for Negotiation Cost Sheet for Realization Cost Sheet for Retirement of a Bill

CLEARING INSTRUMENT

Credit Clearing Instrument Status Debit Clearing Instrument Status

FTT & FDD

FTT Message Search FDD Payment Search

iTransfer (Fund Transfer)

This service will facilitate you to transfer fund from your IBBL accounts to other IBBL accounts instantly. In this case your source IBBL accounts should be registered in our iBanking service.

Conditions:

Maximum amount Tk. 1,00,000.00 within 5 transactions per day. Maximum 10 (Ten) account can be subscribed as a destination account. Subscribed account can not be deleted within 20 days. After subscribing collect secret PIN CODE from Branch. Charge applicable. One(1) taka per One thousand(1000) taka transfer

How to use:

Step 1. You have to subscribe this service first from the new feature list (displayed just below of the banner) or from the menu 'Ou Services'.

Step 2. Go to menu 'Register Account for Fund Transfer' to add or delete IBBL accounts to which you want to transfer your fund

from your accounts. You need not to add your enlisted accounts in this section to transfer fund between your enlisted accounts

Maximum of 5 (Five) accounts are allowed to be added. You can not delete any subscribed account from this list within 30 days o subscribing.

Step 3. Go to menu 'Fund Transfer' to start fund transfer process. Select 'From Account' and 'To Account' from corresponding lis and submit.

Read carefully both 'Source Account' and 'Destination Account' info and enter transfer amount in Taka and keep processing.Nex

system will show summary information of the client to confirm / verify the information.If confirm a mail will be sent to your E-mai address containing 'ONE TIME KEY' and 'Transfer ID'.

Step 4. Provide PIN CODE(Collecte from Branch) and One Time Key and submit to complete fund transfer. If you fail to enter PIN

CODE at first attempt, follow the menu link 'Confirm Requested Fund Transfer' and enter 'Transaction ID' which would be sent to your E-mail address.

iRecharge (Purchase airtime / Recharge account)

Recharge your cell balance from internet in any time from any where.

Conditions:

Maximum amount Tk. 1000.00 & Minimum amount Tk. 10.00 for Prepaid package. Maximum amount Tk. 5000.00 & Minimum amount Tk. 50.00 for Postpaid package. No Charge applicable for iRecharge. Maximum 10 recharge per day. Refund of a fail recharge will be settled within 2-4 business date.

How to Use:

Step 1. You have to subscribe this service first from the new feature list (displayed just below of the banner) or from the menu 'Ou Services'.

Step 2. Click on iRecharge from the main menu of the IBBL portal.Provide all the necessary input and keep processing.

Step 3. System will show summary information of the client to confirm / verify the information.and submit to complete fund transfer.

Registration Process
Step 1. Clients need to click New Registration in IBBL portal(http://ibblportal.islamibankbd.com) to initiate new registration.

Step 2. Next page read the instruction carefully before you fill up the registration form of our IBBL Web portal and then click continue.

Step 3. The link will redirect the user to a page where client will provide First name last name and a valid email address. This emai address will be used as login User id. Click on submit.

Step 4. An auto generated mail containing a link of next step of registration will send from portal in user email. Click this link.

Step 5. The link will redirect the user to a page where client will provide some basic information that is required for our registration

Provide how many numbers of a/c you want to see on your a/c statement. If you give 2, then system will generate two rows to take

input from you on next page. Investment and Foreign Exchange Customer need to select number of customer id. you must provide information all star marks fields and then click Register.

Step 6. On next page, you will have to provide some additional information along with Password and Challenge key

This password will be used as login password. Challenge key is case sensitive. You must provide the exact Challenge key otherwise system will not store the data.

Step 7. On successful registration, system will show last page of registration which containing all summary information, profile id

and authorization code. This page should be printed, preserved and submitted to the nearest IBBL branch. If you failed to preserve this page check your email.

Step 8. IBBL branch will verify and approve your profile. After approval of your profile you will have a 'Activation Mail' to active your profile.

If any of the above mentioned steps is NOT properly done, then we treat the application as incomplete registration. After finishing

these above steps, customer will be able to log-in to the system with his username and password. Lets start registration procedure...... <click here>

ATM Service

IBBL has introduced its ATM Banking service since 2000. Being the largest in online connectivity among the branches we are capable of providing the better customer service to our clints.

Services

Cash Withdraw Fund Transfer Mini Account Statement Balance Inquiry

Transaction Limit

For Cash Withdrawal maximum amount is Tk. 50,000 in a calendar date.

Charges

Tk.300 Yearly fees is applicable.

ATM Booth Location

Please click Here to view the ATM booth locations

For more information please contact to your nearest branch.

Remittance Card Service

Islami Bank Bangladesh Limited has introduced 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.

Benefits

24 Hour Service. Can be received this card from any IBBL branch without any fee. Draw money from any IBBL booth. Card Balance Inquiry from any IBBL booth. Foreign Remittance is deposited in this card. Bank account is not necessary Maximum Tk. 50,000.00 from ATM booth and any number of amount from bank counter can be drawn. Only foreign remittance sender / receiver can take this service of Remittance Card. Utility Bill can be paid by Remittance Card. Balance inquery from SMS or iBanking Service.

Transaction Limit

For Cash Withdrawal from ATM booth maximum amount is Tk. 50,000 in a calendar date. Any number of amount from bank counter.

Charges

No charges is applicable.

SWIFT Service

Society for Worldwide Inter-Bank Financial Telecommunication (SWIFT) is a bank owned co-operative serving the financia

community worldwide. The SWIFT Transport Network (STN) is a dedicated global network for secure communication between SWIFT Customers.

SWIFT supports the financial data communication and processing needs of financial institutions, through a range of financia

messaging services and value-added processing, as well as, access through the STN and interface and application software. In short SWIFT is a pioneer in the automation of the global financial industries.

Islami Bank Bangladesh Limited has introduced this SWIFT alliance entry system firstly in October 1999 and introduced SWIFT alliance access in October 2001.

Services

Personalised service Facilities to access outside scheduled time Parcel handling Safe custody of goods and bonds/shares Lockers available in various sizes. i.e. Small, Medium and Large.