1

Pag

e1

CHAPTER ONE

INTRODUCTION

2

Pag

e2 1.1 Introduction

This report is based on an internship program. IBTRA arranges internship program to

gather practical knowledge about baking activities followed by IBBL for University

students as Universities conducted with different organization after the completion of

theoretical courses of program of Bachelor of Business Administration (BBA). A group

of interns must carry out a specific project, which is assigned by the IBTRA. In this

particular report, I am a internee of the previously mentioned program and the concerned

organization is Islamic Bank Bangladesh Limited (IBBL) which is a prominent private

and the first Bank of Bangladesh that based on Islamic Shariah. Hence I am placed in

IDB Branch of Islami Bank Bangladesh Limited from April 7 to june 5. In way of

delegation, responsibility of carrying out the study has conferred upon the concerned

interns.

1.2 REPORT BACKGROUND

The practical orientation in different organization is the final term requirement of BBA

program. Hence I am selected for the Islamic Bank Bangladesh Limited (IBBL). As

instructed by Zillur Rahman Patwary I am assigned to work in Islamic Bank Bangladesh

Limited, IDB Branch. And since then I had started our practical orientation program in

Investment department of that particular branch of IBBL and successfully complete with

lots of solid work experience. And based on that I prepared this report where I tried to

mention every single point that I gather from there.

1.3 The Objectives of the Study

The main objective of the study is to know the different modes of investment of IBBL.

To satisfy the main objective we are setup the following specific objectives:

1. to assess different types of investment of selected bank;

2. to understand the different mechanism and modes of investment of IBBL and

3. to understand various forces those have impact on investment operation.

3

Pag

e3 1.4 Rational of the report

The Internship report titled on Different modes of investment of IBBL is submitted in

practical requirement for the fulfillment of the degree of Master‟s of Business

Administration (MBA) under Department of Business Administration of Jagannath

University, Dhaka. Internship program is the systematic process of gathering; recording;

analyzing and presenting data about the subject that a student goes to learn on the

program. The aim of this report is connect practical knowledge with theoretical

knowledge since everyone must be expert in both theoretical and practical knowledge to

survive in the competitive world.

1.5 Methodology of the Report

For moving out this project paper I had to study the actual banking maneuver especially

“Modes of investment of IBBL.” For the purpose of the study, data have been collected

both from the primary and secondary sources.

1.5.1 Secondary sources data

I discussed with the executives & officials of the IBBL and found the approximate data

which have been presented in the report. The study have been conducted through the

assistance International Banking Wing (IBW), Head Office of IBBL as per their

monitoring / formulating policy issues for enhancing their Investment business through

applying modern and technological means. I have been also physically visited to observe

the effectiveness of the efforts relating Investment effectively and efficiently managed by

IBBL.

The researcher has collected secondary data from the following sources:

Annual Reports of Islami Bank Bangladesh Ltd.

Synopsis and training materials provided by Bangladesh Bank and Islami Bank

Training and Research Academy (IBTRA).

Manuals of Islami Bank Bangladesh Ltd.

Statement affairs of IDB Branch.

Islami Bank Bangladesh Limited, Website- http://www.islamibankbd.com.

Bangladesh Bank, Web site- http://www.bangladeshbank.bd.org.

4

Pag

e4 1.6 Scope of the further studies:

Objective of the practical orientation program is to have practical exposure for the

students. My permanent status was for only two month which was somehow not

sufficient enough to gather adequate experience of such vast banking business .after

working whole day in the office it was very much difficult and also impossible to study

again the theoretical aspect of banking on the other hand to prepare my internship report I

have faced some limitation as follows:

Eight weeks of time is not enough for the study.

I could not go in depth of the study.

The staffs of the branch were some time so busy that they could not help us

all time.

Preparing internship report is really troublesome.

Collection of data was not smooth.

Analyzing with financial data is much more confusing and complicated than

any other data.

Unavailability to required published documents.

To collect data and information it is a common tendency of any department

to keep back their departmental data and information.

Lack of my experience and efficiency to prepare the standard report.

5

Pag

e5

CHAPTER TWO

PROFILE OF THE

ORGANIZATION

INVESTMENT OF IBBL

6

Pag

e6 2.1 Historical background of IBBL:

In August 1974, Bangladesh signed the Charter of Islamic Development Bank and committed

itself to reorganize its economic and financial systems as per Islamic Shariah. In January 1981,

the president of Bangladesh, the then, while addressing the 3rd Islamic Summit Conference held

at Macca and Taif suggested, “ The Islamic countries should develop a separate banking system

of their own to facilitate their trade and commerce. “This statement of the president indicated

favorable attitude of the government of the People’s Republic of Bangladesh towards

establishing Islamic banks and financial institutions in the country. Earlier in November 1982,

Bangladesh Bank, the country’s central Bank, sent a representative to study the working of

several Islamic Banks abroad.

In November 1982, a delegation of IDB visited Bangladesh and showed keen interest to

participate in establishing a joint venture Islamic Bank in the private sector. They found a lot of

work had already been done and Islamic banking was in a ready form for immediate

introduction. Two professional bodies Islamic Economics Research Bureau (IERB) and

Bangladesh Islamic Banker’s Association (BIBA) made significant contributions towards

introduction of Islamic banking in the country.

They came forward to provide training on Islamic banking to top bankers and economists to fill

up the vacuum of leadership for the future Islamic banks in Bangladesh. They also held

seminars, symposia and workshops on Islamic economics and banking throughout the country

to mobilize public opinion in favor of Islamic banking. Their professional activities were

reinforced by a number of Muslim entrepreneurs working under the aegis of the then Muslim

Businessmen in society (now reorganized as industrialist & Businessmen Association). The body

concentrated mainly in mobilizing equity capital for the emerging Islamic Banks

At last, the long drawn struggle, to establish an Islamic bank in Bangladesh becomes a reality.

Islami Bank Bangladesh Limited was established in March 1983. In which 19 Bangladeshi

nationals, 4 Bangladeshi institutions and 11 banks, financial institutions and government bodies

of the middle east and Europe including IDB and eminent personalities of the kingdom Saudi

Arabia joined hands to make the dream a reality.

7

Pag

e7 2.2 Mission of IBBL

To establish Islami Banking through the introduction of a welfare oriented banking

system and also ensure equality 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

socio-economic enlistment and financial services to the low-income community

particularly in the rural areas.

2.3 Vision of IBBL

Vision of IBBL is to always strive to achieve superior financial performance, be

considered a leading Islami Bank by reputation and performance.

Goal of IBBL is to establish and maintain the modern banking techniques, to

ensure the soundness and development if the financial system based on Islami

principles and to become the strong and efficient organization with highly

motivated professionals, working for the benefit of people, based upon

accountability, transparency and integrity in order to ensure the stability of

financial system.

IBBL will try to encourage saving in the form of direct investment.

IBBL will also try to encourage investment particularly in projects, which are

more likely to lead to higher employment.

2.4 Special Features of IBBL

The bank is committed to run all its activities as per Islami Shariah. IBBL through its

steady progress and continuous success has earned the reputation of being one of the

leading private sector banks of the country. The distinguishing feature s of IBBL is as

follow:

All its activities are conducted on interest-free banking system according

to Islamic Shariah.

Establishment of participatory banking instead of banking on debtor-

creditor relationship.

8

Pag

e8

Investment is made through different modes permitted under Islami

shariah

Investment income of the Bank is shared with the Mudaraba depositors

according to a ratio to ensure a reasonable fair rate of return on their

depositors.

Its aims are to introduce a welfare-oriented banking system and also to

establish equity and justice in the field of all economic activities.

It extends Socio-economic and financial services to the poor, helpless and

low-income group of the people for their economic up liftmen particularly

in the rural areas.

It plays a vital role in human resource development and employment

generation particularly for the unemployed youths.

It extends co-operation to the poor, the helpless and the low-income group

for their economic development.

Its aim is to achieve balanced growth and equitable development of the

country through diversified investment operations particularly in the

priority sectors and in the less developed areas.

2.5 Objectives of Islamic banking:

The primary objective of establishing Islamic banks all over the world is to promote,

foster and develop the application of Islamic principles in the business sector. More

specifically, the objectives of Islamic banking when viewed in the context of its role in

the economy are listed as following:

To offer contemporary financial services in conformity with Islamic Shariah;

To contribute towards economic development and prosperity within the

principles of Islamic justice;

To accept deposits on Mudaraba& Al- Wadeah basis.

To extend co operation to the poor the helpless and the low income group for

their economic enlistment.

9

Pag

e9 2.6 Commitments:

TO Shariah

To the Regulators

To the Shareholders

To the Community

To the Customers

To the Employees

To the Stakeholders

To Environment

2.7 Conventional and Islamic banking:

The distinguishing features of the conventional banking and Islamic banking are shown

in terms of a box diagram as shown below:

Banks Islamic Banks

1. The functions and operating modes

of conventional banks are based on

manmade principles.

1. The functions and operating modes

of Islamic banks are based on the

principles of Islamic Shariah.

2. The investor is assured of a

predetermined rate of interest.

2. In contrast, it promotes risk sharing

between provider of capital (investor)

and the user of funds (entrepreneur).

3. It aims at maximizing profit without

any restriction.

3. It also aims at maximizing profit but

subject to Shariah restrictions.

4. It does not deal with Zakat. 4. In the modern Islamic banking

system, it has become one of the

service-oriented functions of the

Islamic banks to collect and distribute

Zakat.

5. Leading money and getting it back 5. Participation in partnership business

10

Pag

e10

with interest is the fundamental

function of the conventional banks.

is the fundamental function of the

Islamic banks.

6. Its scope of activities is narrower

when compared with an Islamic bank.

6. Its scope of activities is wider when

compared with a conventional bank. It

is, in effect, a multi-purpose institution.

7. It can charge additional money

(compound rate of interest) in case of

defaulters.

7. The Islamic banks have no provision

to charge any extra money from the

defaulters.

8. In it very often, banks own interest

becomes prominent. It makes no effort

to ensure growth with equity.

8. It gives due importance to the public

interest. Its ultimate aim is to ensure

growth with equity.

9. For interest-based commercial banks,

borrowing from the money market is

relatively easier.

9. For the Islamic banks, it is

comparatively difficult to borrow

money from the money market.

10. Since income from the advances is

fixed, it gives little importance to

developing expertise in project

appraisal and evaluations.

10. Since it shares profit and loss, the

Islamic banks pay greater attention to

developing project appraisal and

evaluations.

11. The conventional banks give

greater emphasis on credit-worthiness

of the clients.

11. The Islamic banks, on the other

hand, give greater emphasis on the

viability of the projects.

12. The status of a conventional bank,

in relation to its clients, is that of

creditor and debtors.

12. The status of Islamic bank in

relation to its clients is that of partners,

investors and trader.

11

Pag

e11

2.8 Shariah Council of IBBL:

The Shariah Council of Islamic Bank generally consists of experts from the following

four areas:

Fuqaha: Persons representing this group must be well versed in the Quran, Sunnah and

fully conversant with the opinion of all schools of Islami thought and Islami law and

jurisprudence. They must view Islam as a total way of life and a living religion.

Banker: There must be a member who is fully conversant with banking law and practices

and has practical experiences in Banking business including foreign trade.

Economist: A member from this group need not necessarily be an Islami economist to

start with. But if he is an Islami Economist it is an added advantage. What is important is

that he must be really proficient in modern economies with an in depth study of the

community, which a bank is going to solve. He must have up to date knowledge in the

development of the contemporary world.

Lawyer: A member representing this group should be a successful practitioner lawyer.

He must be proficient in commercial law including company law. In consultation with the

Fuqaha and Economist members of the council, he should be able to draft such

innovating contracts, which will have the sanction of Islami principles and a banking law

of the land.

2.9 Objectives of Shariah Council:

The functions of the council are to offer views and opinions on matters related to

the bank from time to time. The council may require any paper document from

the bank and examine the same to see whether it is according to see whether it is

according to Islamic principles.

The shariah council assists the Board of Directors by advising them on matters

related to shariah.

The opinion of the majority of members is taken as the opinion of the council

provided that the said opinion is supported by at least three Muftis of the council.

The council maintains its secretariat and a well-equipped library as the Head

Office of the bank where it keeps proper records of all of its proceedings and

decisions.

12

Pag

e12

The council may whenever it thinks necessary, constitutes a sub-committee to

help the council.

The council elects a chairman and a secretary from amongst them. The chairman

will normally preside over the meetings. In his absence the members present elect

one of them to preside over the meetings.

The council issues Shariah Certificate in the Annual Report of the bank.

2.10 Functions of IBBL:

The operation of Islamic Bank Bangladesh limited can be divided into three (3) major

categories:

General Banking: it includes:

Receipts and payment of cash.

Mobilization of deposits

Handling transfer transaction.

Operations of clearing house

Maintenance of accounts with Bangladesh bank and other banks.

Collection of cheques and bills.

Issue and payment of Demand Draft,Telegraphic Transfer and Payment

order.

Executing customers standing instructions.

Maintenance of internal accounts of the bank.

Maintenance of safe deposit lockers.

While doing all the above noted work IBBL issue cheque-book, Deposit account

operating form, SS card, Ledgers, Cash book, Deposit account ledgers, preparation

statement of accounts, Pass book, Balance of different accounts and calculates profits.

13

Pag

e13

2.11 Corporate Information:

Date of Incorporation 13th March 1983

Inauguration of 1st Branch (Local Office,

Dhaka)

30th March 1983

Formal Inauguration 12th August 1983

Authorized Capital TK = 20,000.00 Million

Paid-up capital TK=12,509.64 Million

Share of capital:-

Local Share holders 41.43%

Foreign share holders 58.57%

Zones 14

Branches(Including SME/Agricultural Br.) 276

SME/Agriculture Branch equity TK= 33,512.00Million

Deposit TK=335,578.00Million

Invest TK=329,906.00Million

F.Ex TK=610,199.00Million

Manpower 12,188

No. of Share Holder 60,302

No. of Share ATM 1400

No. of Own ATM 192

14

Pag

e14

2.12 Milestone of IBBL:

IBBL established on 13th

march 1983.From establish unite now IBBL deals different

types of business and deals different Banking service. IBBL milestone are given below:

Established on 13th March 1983

Certificate for Commencement of Business 27th March 1983

Inauguration of 1st Branch 30th March 1983

Formal Inauguration 12th August 1983

Shariah Supervisory Committee 1983

CSR/Foundation activities 1983

IPO 1985

Listing in Dhaka Stock Exchange Ltd. 2nd July1985

Listing in Chittagong Stock Exchange Ltd. 7th March1996

Accommodation of IBBL Head Office in its

own Tower

10th March 2000

1st Rights Share issue 1989

2nd Rights Share issue 1996

3rd Rights Share issue 2000

4th Rights Share issue 2003

Opening of 100th Branch 2003

Opening of 200th Branch 21st June 2009

Opening of 250th Branch 15th December 2010

Joining/Agreement with CDBL 29th December 2004

In-house Core Banking Software 2005

IBBL Mudaraba Perpetual Bond (MPB)

Issue

25th November 2007

Inauguration of Broker House 1st January 2008

. Islami Bank Securities Limited (IBSL 22nd March 2010

Islami Bank Capital Management Limited

(IBCML)

1st April 2010

1st Position of IBBL in Inward Remittance 2007, 2008, 2009 & 2010

15

Pag

e15

100% Branch Online Banking 7th January 2011

Launching of i-Banking 16th December 2011

Launching of Islami Bank m-Cash 27th December 2012

2.13 Board of Directors:

The board of director consists of 17 non-executive member .The number of board

members is within the maximum limit set by the central bank. The board is composed of

experienced members with devised professional experiences. The board members are

independent who express their views and opinions free from any influence. The decision

making process and practices are based on free exchange of views to make effective

directions for the management which is one of the key responsibilities of the board.

Member of Board of Director

Prof. Abu Nasser Muhammad Abduz Zaher Chairman

Yousif Abdullah Al-Rajhi

Vice Chairman

Engr. Mustafa Anwar

Vice Chairman

Abdullah Abdul Aziz Al-Rajhi

Director

Engr. Md. Eskander Ali Khan

Director

Dr. Abdul HameedFouad Al Khateeb Director

Md. AbulHossain

Director

Dr. AreefSuleman

Director

Mohammad Abdullah Al Jalahma

Director

Mominul Islam Patwary Director

Hafizul Islam Mian

Director

Md. Shahidul Islam Director

Mohammed Nazrul Islam

Salauddin Ahmed

Director

Md. Abdus Salam, FCA, FCS

Depositor Director

HumayunBokhteyar, ACPA, FCA

Depositor Director

16

Pag

e16

Professor NRM Borhan Uddin, PhD

Independent Director

Mohammad Abdul Mannan

Managing Director

2.14 Executive Committee of IBBL

Engr. Md. Eskander Ali Khan

Director

Dr. Abdul Hameed Fouad Al Khateeb

Member

Md. Abdus Salam, FCA, FCS

Member

Md. Abul Hossain

Member

Humayun Bokhteyar, ACPA, FCA Member

2.15 Sponsors of IBBL

Foreign Sponsors:

Islamic Development Bank, Jeddah, K.S.A.

Kuwait Finance House (K.S.C.), Kuwait

Jordan Islamic Bank, Jordan

Islamic Investment & Exchange Corporation, Doha, Qutar

Bahrain Islamic Bank, Bahrain

Islamic Banking System International Holding S. A.

Al-Rajhi Company For Currency Exchange & Commerce,

Sheikh Ahmed Salah Jamjoom, Jeddah, K.S.A

Fouad Abdul hameed Al-Khateeb (Late), K.S.A

Dubai Islamic Bank, Dubai, U.A.E.

The Public Institution For Social Security, Safat,

Ministry of Awqaf And Islamic Affairs Kuwait

Ministry of Justice, Department of Minors Affairs,

Local Sponsors:

Mohammad Abdur Razzaque Lasker (Late)

Mofizur Rahman (Late)

Barrister Tamizul Haque

17

Pag

e17

Mohammad Younus (Late)

Mohammad Shafiuddin Dewan (Late)

Mohammad Bashiruddin

Mohammad Hussain (Late)

Nashiruddin Ahmed (Late)

Mohammad Mosharraf Hossain

Mohammad Malek Minar (Late)

Zakiuddin Ahmed

M. A. Rashid Chowdhury

Engr. Mustafa Anwar

Mohammad Abdullah

Sirajuddowla

Mohammad Nuruzzaman (Late)

Abul Quasem

A. K. Fazlul Huq

Engr. Muhammad Dawood Khan

Baitush Sharaf Foundation Ltd.

Ibn Sina Trust

Bangladesh Islamic Centre

Islamic Economics Research Bureau

2.16 Products & Services:

Main product & service of IBBL are as follows:

Deposit Schemes.

Investment.

Special Scheme.

ATM Services.

Online services.

I-banking.

SMS Service.

18

Pag

e18

2.16.1 IBBL offers to open the following account to the depositors:

Al-Wadeeah Current Account.

Mudaraba Savings Account.

Mudaraba Term Deposit Account. (3 month / 6 month / 12 month / 36

months)

Mudaraba Special Notice Account

Mudaraba Hajj Savings Account (1 year to 25 year term)

MudarabaWaqf cash Deposit Account

Mudaraba Special Savings (pension) Account (5 year to 10 year term)

Mudaraba Savings Bond Scheme (5 year & 8 year term)

Mudaraba Foreign Currency Deposit Account.

Mudaraba Monthly Profit Deposit Account.

Mudaraba Moharana Account.

Mudaraba School student saving Account

Mudaraba farmer saving account

Mudaraba NRB saving bond (MNSB) 5 years &8 years.

2.16.2 Investment Mechanisms

1) BAI-MODES

a) Bai-Murabaha

b) Bai-Istijrar

c) Bai-Muajjal

d) Bai Salam

e) Istisna‟a

f) Bai-As-Sarf

2) SHARE-MODES

a) Mudaraba

b) Musharaka

3) IJARA-MODES

a) Hire Purchase Under Shirkatul Melk

19

Pag

e19

2.16.3 Special Scheme:

Islamic Bank Bangladesh Ltd. being welfare oriented institution has now designed and

implemented schemes keeping in view the needs of different sectors and various sections

of people for their socio-economic uplift and to improve their quality of life. The special

scheme is as follows:

I. Household Durables Scheme (HDS)

II. Investment Scheme for Doctors (ISD)

III. Transport Investment Scheme (TIS)

IV. Car Investment Scheme (CIS)

V. Small Business Investment Scheme (SBIS)

VI. Micro Industries Investment Scheme (MIIS)

VII. Agricultural Implement Investment Scheme (AIIS)

VIII. Real Estate Investment Program (REIP)

IX. Real Estate Investment (Commercial & Working Capital)

X. Agricultural Investment of IBBL

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

2.16.4 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 clients.

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.

2.16.5 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

20

Pag

e20

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,

you can now-

Transfer funds (iTransfer) between IBBL accounts

Purchase airtime / Recharge account (iRecharge) from all mobile operators in

Bangladesh, except Teletalk.

WiMax Recharge

2.16.6 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

Multiple Account Registration

International Push- Pull Facility

Account Balance (BAL )

Mini Account Statement (STM)

Account Information (ACI)

21

Pag

e21

2.16 Organization Structure of IBBL:

22

Pag

e22

CHAPTER THREE

DIFFERENT MODES OF

INVESTMENT OF IBBL

23

Pag

e23

3.1 Investment

The special feature of the investment policy of the Islamic Banking is to invest on the

basis of profit-loss sharing system in accordance with the tents and principles of Islamic

Shariah. Earning profit is not the only motive and objective of the Banks investment

policy rather prominence is given is attaining social good and in creating employment

opportunities Pursuant to the investment policy adopted by the bank a 7 year perspective

investment plan has been drawn up and put into implementation. The plan aims at

diversification of the investment portfolio by size, sector, geographical area, economic

purpose and securities to bring in phases all sectors of the economy and all types of

economic groups of the society within the fold of banks investment operations.

Accordingly the plan envisages composition of the investment profit-folio with for

agriculture and rural investment, 16% for industrial term investment, 14% for industrial

working capital, 6% for housing and real estate, 6% for transport and communication, 2%

for electricity, gas, water and sanitation services, 2% for storage‟s 40% for import, export

and local trade and trade related activities and 1% for other productive purposes by the

end of the plan period, i.e. the year 2002Further, in order to diversify investment profit-

folio, the bank engaged itself in investment operations through special schemes

introduced during the years. The Bank is planning to introduce yet other new investment

schemes in addition to welfare oriented investment schemes viz., Rural Development

scheme.Transport investment schemes, car investment scheme, small business investment

schemes, Doctors investment scheme, Household Durables investment scheme, Housing

investment scheme and agricultural implements investment scheme etc. Besides, the bank

is financing various economic groups in different sectors in both urban and rural areas for

recruitment of their economic condition.

3.2 The objectives and principles of investment operations of the banks-

The investment fund strictly in accordance with the principles of Islamic Shariah.

To diversifies its portfolio by size of investment, by sectors (public and private)

by economic purpose, by securities and by geographical area including industrial,

commercial and agricultural.

24

Pag

e24

To ensure mutual benefit both for the Bank and the investment client by

professional appraisal of investment and monitoring therefore.

To make investment keeping the socio-economic requirement of the country in

view.

To increase the number of potential investors by making participatory and

productive investment.

To invest in the form of goods and commodities rather than give out cash money

to the investment clients.

To invest in the form of gods and commodities rather than give out cash money to

the investment clients.

To encourage social uplifting enterprises.

To shun even highly profitable investment in fields forbidden under Islamic

Shariah and is harmful for the society.

The Bank extends investments under the principles of Bai-Marabaha, Bai-

Muazzal, Hire Purchase under Shirkatul Melk and Musharaka. The bank making

sincere efforts to go for investment under Mudaraba principle in near future.

3.3 Investment Modes of IBBL:

When money is deposited in the IBBL, the bank, in turn, makes investments in different

forms approved by the Islamic Shariah with the intention to earn a profit. Not only a

bank, but also an individual or organization can use Islamic modes of investment to earn

profits for wealth maximization. Some popular modes of IBBL‟s Investment are

discussed below.

Bai-Mechanism Sharing Mechanism Ijara Mechanism

Bai- Murabaha

Bai-Muajjal

Bai- Salam

Bai- Istisna

Bai- as sarf

Mudarabah

Musharaka

Hire purchase under

shirkatul Melk.

Hire purchase

25

Pag

e25

3.4 Bai- Mechanism:

Under Bai- Machanism Islami Bank Bangladesh Limited practiced different kinds of

investment Modes. These are given below:

1. BAI-MURABAHA (Contract Sale on Profit):

A. Meaning of Murabaha

“Bai-Murabaha” means sale for an agreed upon profit. Bai-Murabaha may be defined as a

contract between a buyer and a seller under which the seller sells certain specific goods

permissible under Islamic Shariah and the Law of the land to the buyer at a cost plus an

agreed upon profit payable today or on some date in the future in lump-sum or by

installments. The profit may be either a fixed sum or based on a percentage of the price of

the goods.

B. Important Features of Murabaha

1. A client can make an offer to purchase particular goods from the bank for a specified

agreed upon price, including the cost of the goods plus a profit.

2. A client can make the promise to purchase from the bank, that is, he is either to satisfy

the promise or to indemnify any losses incurred from the breaking the promise without

excuse.

3. It is permissible to take cash/collateral security to guarantee the implementation of the

promise or to indemnify any losses that may result.

Steps of Bai-Murabaha

First Step: The client submits a proposal regarding his requirements of the bank. The

client sends a proposal with the specifications of the commodity to be acquired from the

bank. The proposal also indicates details regarding the date, time and place of delivery as

well as price and form of payment information. The bank responds by sending a counter

proposal either accepting the buyer‟s price or stipulating a different price.

Second Step: The client promises to buy the commodity from the bank on a Bai-

Murabaha basis, for the stipulated price. The bank accepts the order and establishes the

terms and conditions of the transaction.

26

Pag

e26

Third Step: The bank informs the client (ultimate buyer) of its approval of the agreement

to purchase. The bank may pay for the goods immediately or in accordance with the

agreement.

The seller expresses its approval to the sale and sends the invoice(s).

Fourth Step: The two parties (the bank and the client) sign the Bai-Murabaha Sale

contract according to the agreement to purchase.

Fifth Step: The Bank authorizes the client or its nominee to receive the commodity.The

seller sends the commodity to the place of delivery agreed upon. The client undertakes

the receipt of the commodity in its capacity as legal representative and notifies the bank

of the execution of the proxy.

D. Application of Bai-Murabaha

Murabaha is the most frequently used form of finance in IBBL throughout the world. It is

suitable for financing the different investment activities of customers with regard to the

manufacturing of finished goods, procurement of raw materials, machinery, and other

required plant and equipment purchases. It is used widely about 53%.

2. BAI-MUAJJAL (Deferred Sale):

A. Meaning of Bai-Muajjal

The Bai-Muajjal may be defined as a contract between a buyer and a seller under which

the seller sells certain specific goods, permissible under Shariah and law of the country,

to the buyer at an agreed fixed price payable at a certain fixed future date in lump sum or

in fixed installments

B. Important Features of Bai-Muajjal

1. It is permissible and in most cases, the client will approach the bank with an offer to

purchase a specific good through a Bai-Muajjal agreement.

2. It is permissible to make the promise binding upon the client to purchase the goods

from the bank.

3. It is permissible to take cash/collateral security to guarantee the implementation of the

promise or to indemnify the bank for damages caused by non-payment.

27

Pag

e27

3. BAI-SALAM (Advance payment):

A. Meaning of Bai-Salam

Bai-Salam is a term used to define a sale in which the buyer makes advance payment, but

the delivery is delayed until sometime in the future. Usually the seller is an individual or

business and the buyer is the bank.

B. Steps of Bai-Salam

1. Cash sale or Sale on Credit – The bank pays the agreed upon price at the time of the

contracts inception. The seller agrees to the delivery of the commodity some specified

date in the future.

2. Delivery and Receipt of the Commodity on the Specific due Date: There are several

options for delivery available to the bank.

a) The bank may receive the commodity and resell it to another party for cash or

credit

b) The bank may authorize the seller to find another buyer for the commodity.

c) The bank may direct the seller to deliver the commodity directly to a third party

with whom the bank has entered into another agreement.

3. The Sale Contract: The bank agrees to sell the commodity for cash or a deferred price,

which is higher than the Salam purchase price. The buyer agrees to purchase and to pay

the price according to the agreement.

C. Application of Bai-Salam

Salam sales are frequently used to finance the agricultural industry. Banks advance cash

to farmers today for delivery of the crop during the harvest season. Thus banks provide

farmers with the capital necessary to finance the cost of producing a crop. Salam sale are

also used to finance commercial and industrial activities. Once again the bank advances

cash to businesses necessary to finance the cost of production, operations and expenses in

exchange for future delivery of the end product. In the meantime, the bank is able to

market the product to other customers at lucrative prices. In addition, the Salam sale is

used by banks to finance craftsmen and small producers, by supplying them with the

capital necessary to finance the inputs to production in exchange for the future delivery of

products at some future date.

28

Pag

e28

4. Bai-ISTISNA‟A:

A. Definition of Istisna‟a Sale

The Istisna‟a sale is a contract in which the price is paid in advance at the time of the

contract and the object of sale is manufactured and delivered later. It is a contract with a

manufacturer to make something and it is a contract on a commodity on liability with the

provision of work. IBBL can utilize Istisna‟a in two ways.

B. Steps of Istisna’a Sale

Istisna‟a Sale Contract: The Buyer expresses his desire to buy a commodity and brings a

request to purchase the commodity to the bank. The method of payment, whether cash or

deferred is set forth in the agreement. The bank agrees to deliver the commodity to the

buyer at some agreed upon time in the future.

C. Application of Istisna’a Sale

The Istisna‟a contract allows IBBL to finance the public needs and the vital interests of

the society to develop the Islamic economy in accordance with Islamic teachings. For

example Istisna‟a contracts are used to finance high technology industries such as the

aviation, locomotive and ship building industries. In addition, this type of business

transaction is also used in the production of large machinery and equipment

manufactured in factories and workshops. Finally, the Istisna‟a contract is also applied in

the construction industry such as apartment buildings, hospitals, schools, and universities

to whatever that makes the network for modern life. One final note, the Istisna‟a contract

is best used in those transactions in which the product being purchased can easily be

measured in terms of the specified criteria of the contract.

3.5 Share Mechanism:

1. MUDARABA (Investment made by the entrepreneur):

A. Definition of Mudaraba

The term Mudaraba refers to a contract between two parties in which one party supplies

capital to the other party for the purpose of engaging in a business activity with the

understanding that any profits will be shared in a mutually agreed upon. Losses, on the

other hand, are the sole responsibility of the provider of the capital. Mudaraba is also

known a Qirad and Muqaradah.

29

Pag

e29

B. Steps of Mudaraba

The bank provides the capital as a capital owner. The Mudarib provides the effort and

expertise for the investment of capital in exchange for a share in profit that is agreed upon

by both parties.

1. The Results of Mudaraba: The two parties calculate the earnings and divide the profits

at the end of Mudaraba. This can be done periodically in accordance with the terms of the

agreement, subject to the legal rules that apply.

2. Payment of Mudaraba Capital: The bank recovers the Mudaraba capital it contributed

before dividing the profits between the two parties because the profit is considered

collateral for the capital.

3. Distribution of wealth resulting from Mudaraba: In the event a loss occurs, the capital

owner (the bank) is responsible for the entire loss. In the event of profits, they are divided

between the two parties in accordance with the agreement between them, subject to the

capital being recovered first.

C. Rules of Mudaraba

There are some legal rules that govern the business relationship Mudaraba which are as

follows.

1. It is a condition in Mudaraba that the capital be specific in nature. In other words, the

amount of capital must be known at the inception of the contract. The purpose of this rule

is to ensure that there is no uncertainty about the amount of capital and, thus, no

uncertainty about the division of profits.

2. It is a condition that capital must be in the form of currency in circulation. However,

merchandise can be contributed, so long as both parties to the business arrangement agree

upon its value.

3. It is a condition that the capital cannot be subject to indebtedness.

2. MUSHARAKA (Partnership based investment)

A. Meaning of Musharaka

The word Musharaka is derived from the Arabic word Sharikah meaning partnership. At

an IBBL, a typical Musharaka transaction may be conducted in the following manner.

30

Pag

e30

One, two or more entrepreneurs approach an IBBL to request the financing required for a

project. The bank, along with other partners, provides the necessary capital for the

project. All partners, including the bank, have the right to participate in the project. They

can also waive this right. The profits are to be distributed according to an agreed ratio,

which need not be the same as the capital proportion. However, losses are shared in

exactly the same proportion in which the different partners have provided the finance for

the project.

3.6 Ijara Mechanism:

Shirkatul Melk:

Shirkatul means partnership Shirkatul Melk means share in ownership. When two or

more persons supply equity, purchase an asset, own the same jointly, and share the

benefit as per agreement and bear the loss in proportion to their respective equity, the

contract is called Shirkatul Melk contract.

Ijarah:

The term Ijarah has been derived from the Arabic words „Air‟ and „Uirat‟ which means

consideration, return, wages or rent. This is really the exchange value or consideration,

return, wages, rent of service of an asset. Ijarah has been defined as a contract between

two parties, the Hiree and Hirer where the Hirer enjoys or reaps a specific service or

benefit against a specified consideration or rent from the asset owned by the Hiree, it is a

hire agreement under which a certain assert is hired out by the Hiree to a Hirer against

fixed rent or rentals for a specified period.

Sale:

This is a sale contract between a buyer and a seller under which the ownership of certain

goods or asset is transferred by seller to the buyer against agreed upon price paid / to be

paid by the buyer. Thus, in Hire Purchase under Shirkatul Melk made both the bank and

the client supply equity in equal or unequal proportion for purchase of an asset like land,

building, machinery, transport etc. Purchase the asset with that equity money, own the

same jointly; share the benefit as per agreement and bear the loss in proportion to their

respective equity. The share part or portion of the asset owned by the bank is hired out to

the client partner for a fixed rent per unit of time for a fixed period. Lastly the bank sells

31

Pag

e31

and transfers the ownership of its share/ part/ portion to the client against payment of

price fixed for that part either gradually part by part or in lump sum within the hire

period or after the expiring of the hire agreement.

3.7 Consumers Investment Schemes of IBBL:

Housing Investment Schemes:

The bank has introduced this scheme recently to case the serious housing problem in the

urban areas and to make arrangement for comfortable accommodation of the fixed

income group. Officials of the defense forces; permanent officials of government, semi-

government and autonomous organization; teachers of established universities, university

colleges and medical colleges; graduate engineers, doctors and established professionals;

Bangladesh, officials and reputed multinational companies, international financial

organizations, donor agencies, foreign embassies etc., officials of local established and

reputed public limited companies; wage earner professionals like doctors, engineers,

accountants, teachers and any other profession doing good job abroad with handsome pay

package shall be eligible to apply for availing investment facilities under the scheme.

Transports Investment Scheme:

To case the existing transportation problem and ensure speedy economic growth and

development of the country particularly the expansion of trade, commerce and industry,

the bank has taken up this scheme, under this scheme investment is being allowed to the

existing successful businessmen and potential entrepreneurs in this sector for all types of

road and water transport like bus, mini-bus, track, launch, cargo-vessel, transport for rent-

a-car service; and baby-taxi, tempo, pick-up van for self employment; and ambulance for

clinic and hospital. The bank is also extending investment facilities to multinational

companies, established business houses and well to do officials and professionals for

acquisition of private cars, microbus and jeeps.

Investment Scheme for Doctors:

The bank has been taken up this scheme to help unemployed qualified doctors to go for

self-employment and to provide latest medical equipment‟s to specialist doctors to extend

modern medical facilities throughout the country.

32

Pag

e32

Small Business Investment Scheme:

This scheme has been taken up for self-employment of educated unemployed youths of

rural and urban areas and to provide investment to small businessmen and entrepreneurs.

Investment is extended for about 200 economic activities in sectors as live stock fishing,

agro-farming processing and business, manufacturing, trading/shop-keeping,

transportation, agricultural implements, forestry and services viz., laundry, signboard

painting etc. under this scheme small businessmen and entrepreneurs are given

investment up to take one lac on easy terms and conditions.

Agricultural Investment Scheme:

In keeping with the view of the people oriented and welfare objective of the bank this

scheme has be introduce to provide power tillers, power pump, shallow tube-welter,

thresher machines etc. on easy terms to unemployed rural youths for self-employment

and to the farmer to help augment production in agriculture sector.

Rural Development Scheme:

Bangladesh is predominantly an agriculture country with vast majority living in rural

areas. More than 60% of the people live below the poverty line. Seasonal unemployment

and under employment is so acute that may people remain idle and without job in most of

the time of the year. As a result people in large number are migrating to urban areas,

particularly in metropolis in branch of employment thereby creating social and

environmental hazards. Islami Bank has, therefore, taken up a scheme to reactive the

rural economy and develops model villages through integrated approach. The objective of

the scheme is to care income generating and productive self-employment opportunities

through extension of investment for the development of rural areas and thereby contribute

in alleviating rural poverty. Initially the scheme was introduced in 18 districts through 21

branches of the bank, which was extended to 712 villages in 38 districts through 52

branches of the bank on 30-6-99. This will gradually be extended throughout the country.

Investment will be allowed for the purpose of, amongst, others, production of 21 types of

main crops viz Food, Creates and Cash crops, off-farm activities like doing, but fattening

goat rearing poultry, shop keeping, padding etc, rural transport like Rickshaw, Rickshaw-

Van, Cart etc., irrigation equipment, hand tube-well, housing materials, in all covering

about 343 types of economic activities. Islami Bank foundation, a subsidiary of the bank,

33

Pag

e33

engaged in social welfare activities shall side by side, take care of the requirement of

sanitation, and medicate and education of the villages through integrated area

development approach under Islamic Model.

34

Pag

e34

CHAPTER FOUR

FINDINGS & ANALYSIS

35

Pag

e35

4.1 Introduction

This report is based on IBBL overall activities specially IDB Branch activities I will try

to find out the IDB Branch performance of IBBL specially try to find out the IDB Branch

performance and how much contribute to IDB Branch of overall activities of IBBL. All

performance and contribute are given below in graphically with comments.

Total deposit and investment of IBBL during the period 2003to 2012 of IDB Branch

(Figure in millions)

Particulars Year

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Total deposit &invest.

923.65 988.5 1023.33 1055.8 1150.64 1196.5 1246.54 2087.08 1401.6 1883.61

Invest. 209.76 253.33 303.98 334.76 365 400 440.15 542.9 739.55 755.75

Sector wise investment

Industries 89.9 94.87 101 112.75 121.87 92.13 109.78 111.44 174.04 107.6

Commerce 156.98 167 173 181 189.92 118.12 189.12 225.2 285.18 286.82

Transport .43 .34 .41 .49 .54 .57 1.27 2.08 1.18

Real est. 173.9 179 186 212 221.17 233.51 242.76 292 409.43 394.55

Others 4.86 8.76 6.98 4.98 5.82 2.91 6.34 12.68 42.11 63.65

Modes wise investment

Muajjal .44 .54 .62 .77 .81 .81 .66 11.72 .46 .52

Murabaha 177 187 198 206 249.16 17.07 189.77 223.72 284.3 294.44

Ijara Mechanism

HPSM 165 176 163 198 207.95 202.02 212.89 257.04 346.1 395.73

HPSM staf.

180.98 11067 12.12 12.87 13.74 31.49 30.44 34.68 65.54 61.59

From the above study and table I able to understand and find out the IBBL overall

performance and specially performance of IBBL (2003-2012).I also find out that IBBL

able to keep how much contribute to the economy of our country .overall performance of

IBBL and IDB Branch I have tried to show in graphically below.

36

Pag

e36

Figure 4.1 Trend of the shareholders equity of IBBL during the period 2008 to

2012(in million taka)

From the above graph we can see that IBBL shareholders equity is increase in every year.

Smoothly run from 2008 to 2011, but shareholders equity highly increases from 2011 to

2012.

37

Pag

e37

Figure 4.2: Total Income of IBBL during the period 2007 to 2012(Figure in millions)

The Bank earned Total Income of Tk 50346 million during the year 2012 as against taka

38401 million preceding year registering 31% growth over the year.

38

Pag

e38

Figure 4.3: Total Deposit of IBBL during the period 2007to 2012(Figure in millions)

From the Above graph we can say that overall position of IBBL under deposit collection.

.And we also forecast that how much growth of Investment of IBBL in future from the

trend of above graph. If this consecutive remain in future, so we can forecast that in the

next year IBBL deposit collection will be increase in .0995 million. I think it is well

position for sustaining the any organization.

39

Pag

e39

Figure 4.4: Total Investment of IBBL during the period 2007 to 2012(Figure in

millions)

From the Above graph we can say that overall investment position of IBBL .And we also

forecast that how much growth of Investment of IBBL in future from the trend of above

graph. If this consecutive remain in future, so we can forecast that in the next year IBBL

investment will be increase in .0995 million. I think it is well position for sustaining the

any organization.

40

Pag

e40

Figure 4.5: Total Deposit of IDB Bhaban Brach During the period 2003-2012

(Figure in millions)

From the above graph we can see that the position of IDB Bhaban Branch of IBBL

during the period 2003-2012.we see that deposit is smoothly run by year to year. But

2009 to 2010 deposit growth is very high than previous year.

41

Pag

e41

Figure 4.6: Total Investment of IBBL IDB Bhaban Branch During the period of

2003 to 2012(Figure in millions taka)

From the above graph we can see that the position of IDB Bhaban Branch of IBBL

during the period 2003-2012.we see that from 2003 to 2009 investment growth is slow

and 2009 to 2012 investment growth is well than previous year

42

Pag

e42

Figure 4.7: Sector wise Investment of IDB Bhaban Branch During the period 2007

to 2012 (Figure in millions)

From the above graph we can see that a lot of amount invested to the Real estate sector

and 2011 real estate sector investment highly increase than previous. After Real estate

sector commercial sector investment positions then others side. And we also see that a

few amount invested to the transportation sector

43

Pag

e43

Figure 4.8: Growth of Import, Export &Remittance of IBBL during the period 2008

to 2012(Figure in millions taka)

From the above graph we can see that import position is very well without 2009.In 2009

import is reduce than previous year and next years has been increased .And 2008 to 2009

export growth is very slow and 2010 export is highly increase but 2011 is decrease but

remittance was highly increase . So IBBL should take different steps for improving the

export section.

44

Pag

e44

Figure 4.9: Performance of IBBL Vs National under SME Investment in

2012(Figure in millions taka)

From the above graph we can say that IBBL keep highly contribute to the society for

eliminating the poverty from Bangladesh. IBBL contribute at 18% under SME

investment in overall country. Nationally contribute 82% under SME investment. So if

IBBL can contribute to the SME investment, I think that IBBL able to keep highly

contribute to the national economy.

45

Pag

e45

Figure 4.10: Performance of IBBL Vs Other PCBs under SME Investment in

2012(Figure in millions taka)

From the Above graph we can say that IBBL SME investment is very good .IBBL

contribute 25%SME investment in Bangladesh and all others private Banks contribute

75%.So we can say that IBBL highly contribute to the society for elimination poverty

from the Bangladesh.

46

Pag

e46

CONCLUSION & Recommendations

CHAPTER FIVE

47

Pag

e47

Conclusion:

Islam is a complete way of life and Allah‟s guidance extents into all areas of our lives.

Islam has g ive n d e t a i l r egu la t io ns fo r o u r eco no mic l i fe . T her e fo r e ,

I s la mi Ba nk Ba ng la de s h L imit ed (IBBL) is trying to establish the maximum

welfare of the society by maintaining the principles of Islamic Shariah which is

based on “Quran” and “Sunnah”. Since 1983, IBBL is the pioneer in welfare

banking in this subcontinent and it is trying to do all its activities for the betterment of its

depositors. For the greater interest of the depositors the investment policy of IBBL is to

invest on the basis of profit and loss sharing in accordance with the tents and principles of

Islamic Shariah. P r o f it ea r n ing is no t t he o n ly mo t ive a nd o b je c t ive o f

t he ba nk ‟s in ve s t me nt po l ic y r a t he r emphasis is given in attaining social good

and in creation employment opportunities. IBBL is not secular in its orientation. IBBL

does not finance any project which conflicts with the mo r a l va lu e s ys t e m o f

I s la m. I B B L do es no t s t r ic t l y co ns ider t he c r e d it wo r t h ine s s o f t he

entrepreneur. IBBL receives a return only if the project succeeds and

produces a profit. IBBL considers the soundness of the project and business

acumen and managerial competency of the entrepreneur. Therefore, the rate of

return of investment of IBBL is greater comparing to that of conventional banks.

Finally, Islami Bank Bangladesh Limited (IBBL) has been established with a

view to conduct interest free banking to establish participatory banking instead of

debtor-creditor relationship and finally to establish welfare oriented banking through its

investment operations that would lead to a just society

48

Pag

e48

Recommendations:

Though Islami Bank Bangladesh Ltd. (IBBL) is performing well but it has some crucial

areas to improve which are prescribed below:

1 . I t is a mo der n ba nk ing e r a . E ac h a nd e ver y co mmer c ia l ba nk is

p r o per ly u t i l iz ing technological innovations. So, IBBL needs to utilize these

modern technologies to keep pace with the modern time.

2. IBBL needs to recruit skilled human resources which can turn the bank ahead.

3. The bank should offer facilities such as Credit card, Visa card.

4. IBBL‟s investment processing should become easier than other conventional banks.

5 . I BB L s ho u ld ma ke it s inve s t me nt sc he me s mo r e a t t r ac t ive fo r

a va i l i ng h ig h - r e t u r n projects.

6. IBBL should consider utilizat ion of rural potent ials from both efficiency

and equity grounds in the context of the present -day socio-economic

condit ions of Bangladesh. S t r o ng co mmit me nt s a nd s t epp ing u p t hr o ug h

e xper ime nt a nd imp le me nt a t io n o f innovative ideas are the appropriate ways to

do that

7. IBBL should deserve immediate attent ion in the promotion of the image of

Shariah based banks as PLS (profit-loss-sharing) banks.

8. IBBL can diffuse its scope of investment through focusing sh ariah concept

regarding inve s t me nt a mo ng t he ba nk o ff ic e r s ; e mp lo yer a nd t he

c l ie nt s by s t r o ng t r a in ing , workshops.

9. IBBL should init iate different investment modes according to changing or

diverse needs of clients by conducting huge research and study.

49

Pag

e49

End Matter

50

Pag

e50

Bibliography

Annual Report of Islami Bank Bangladesh Ltd – 2012

References:

Internet:

Website http://www.islamibankbd.com

www.ibtra.com

Web site http://www.bangladeshbank.bd.org.

Books references from

• Chapra, M.U. (1985): Towards a Just Monetary System, published by Islamic Foundation, London, UK

• Hornby, A.S.(1974 ). Oxford Advanced Learners' Dictionary. Oxford University Press.

• Koch, Timothy, W., Bank Management, Second ed. (The Dryden Press, N.Y.)

• Mirakhor, A. (1995). "The Theory Of Islamic Financial System". In Encyclopedia of Islamic Banking,

London: Institute of Islamic Banking and Insurance.

• Ziauddin Ahmed, Munwar Iqbal and M. Rahim Khan (Eds) (1992), Fiscal Policy and Resource

Allocation in Islam, Islamic Development Bank. K.S.A.

• Akkas, S.M. (1991). Relative Efficiency of Conventional and Islamic Banking System in Financing

Investment, Unpublished Ph.D. Thesis, Dhaka University, Bangladesh.

• Mannan, M.A. Trade and Commerce in Islam.

• Jarhi and Ziauddin (1983). A Monetary and Financial Structure of an Interest-Free Economy: Institutions

.

51

Pag

e51

Appendix

52

Pag

e52

Appendix:

Members of the Board of Directors of IBBL:

Chairman: Prof. Abu Nasser Muhammad Abu Zaher

Vice Chairman: Yousif Abdullah Al-Rajhi

Directors:

Engr. Md. Eskander Ali Khan

Md. Abul Hossain

Dr. Abdulhameed Fouad Al-Khateeb

Mohammad Abdul Mannan

Shari`ah Supervisory Committee

Chairman: Sheikh Moulana Mohammad Qutubuddin

Vice Chairman: Mufti Sayeed Ahmad

Member Secretary: Prof. Dr. Abu Bakr Rafique

Members: Principal Md. Serajul Islam

Abdur Raquib

Mufti Shamsuddin (Zia)

Dr. Md. Manzur-e-Elahi

Abbreviations:

IBBL Islami Bank Bangladesh Limited

IBTRA Islami Bank Training & Research Academy

IBW International Banking Wing

K.S.C. Kuwait Finance House

HDS Household Durables Scheme

ISD Investment Scheme for Doctors

TIS Transport Investment Scheme

CIS Car Investment Scheme

53

Pag

e53

SBIS Small Business Investment Scheme

MIIS Micro Industries Investment Scheme

AIIS Agricultural Implement Investment Scheme

REIP Real Estate Investment Program

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

IBanking Internet banking

BAL Account Balance

STM Mini Account Statement

ACI Account Information

ATM Automated Teller Machine