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Achievement of 25 years
Establishment and Overview
Islami Bank Bangladesh Limited was incorporated as the first Shari'ah based interest-free Bank in South-East Asia on the 13th March 1983 as a Public Company with limited liability under the Companies Act, 1913.
I he first branch of the Bank i.e. Local Office, Dhaka started functioning on 30th March, 1983. The Bank was formally inaugurated on 12th August. 1983 The Authorized Capital of the Bank isTk.5,000 million and Paid-Up Capital is I k 3.802 million The shareholdings of foreign and Local Shareholders in the Paid-Up Capital are 57.36% and 42.64% respectively.
After its establishment in 1983 the bank raised its share capital through the initial Public Offering (IPO) of shares in 1985. Subsequently, the first Rights Share was issued in 1989, 2nd Rights Share was issued in 1996, 3rd Rights Share was issued in 2000 and 4th Rights Share was issued in 2003 to enhance its capital base.
The Bank's Corporate Headquarter is situated in its own 18-storied modern building at 40, Dilkusha Commercial Area, Dhaka.
The total Equity of the bank stood at Tk. 14,622 million as on 31st December 2007 which was 10.34% of its Risk-Weighted Assets as against requirement of minimum 9.00%. Bank had 10 Zonal Offices anil 186 Branches in the country as on 31.12.2007. Among the branches 81 Branches are in rural (44%) and 105 Branches are in urban (56%) areas. Total Shareholders of the bank was 26,488 and total officials of the bank were 8,426 as on 31 st December, 2007.
Mudaraba Perpetual Bond
Islami Bank Bangladesh Limited issued Mudaraba Perpetual Bond (a new product) ofTk 300 crore according to the suggestion of Bangladesh Bank and Securities & Exchange Commission under Tier-II. Among these, Tk.150 crore is distributed under the basis of private placement and the rest under Repeat Public Officer (RPO). We have distributed Tk. 150 crore among the applicants against the number of 5,24,196 applications through lottery as RPO. This is a new product in capital market and in banking sector as well so is an outstanding phenomenon.
Mission
• To establish Islami Banking through the introduction of a welfare oriented banking system
• To ensure equity and justice in the field of all economic activities
• To achieve balanced growth and equitable development through diversified investment operations particularly in the priority sectors and less developed areas of the country
• To encourage socio-economic uplift and financial services to the low income community particularly in the rural areas
Vision
• To establish and maintain the modern banking techniques, to ensure the soundness and development of the financial system based on Islamic principles
• To become the strong and efficient organization with highly motivated professionals
• To encourage savings in the form of direct investment
• To encourage investment particularly in projects which are more likely to lead to higher employment
History
1974 - Bangladesh signed the charter of Islamic Development Bank 1980 - Bangladesh Bank made study on the operations of Islamic Banks abroad
1982 - Islamic Development Bank came forward to participate a joint venture Islamic Bank in Bangladesh
1983 - Islami Bank Bangladesh Limited came into being as the first Islamic Bank in the Southeast Asia
1985 IPO & Listing in Dhaka Stock Exchange
Milestone of IBBL
Established on : 13Marchl983
Inauguration of 1st Branch : 30 march 1983
Formallnauguration : 12August 1983
Initial Public Offer : 1985
Listing in Dhaka Stock Exchange Limited : 1996
Listing in Chittagong Stock Exchange Limited : 1996
First Rights Share issue : 1996
Third Rights Share issue : 2000
Fourth Rights Share issue : 2003
Opening of 50th Branch : 16 November, 1991
Openingof 100th Branch : 12Junel997
Opening of 150th Branch : 30 November 2004
Openingof 186th Branch : 23 September 2007
Joining/Agreement with CDBL : 29 December 2004
Corporate Information (31.12.2007)
Date of Incorporation : 13 March 1983
Inauguration of 1st Branch : 30 March 1983
(Local Office, Dhaka)
Formallnauguration : 12Augustl983
Authorized Capital : 5000 Million
Paid up Capital : 3802 Million
Share of Capital
A. Local Shareholders : 42.63%
B. Foreign Shareholders : 57.37%
Equity : 14622 Million
Zones : 10
Branches : 186
Deposit : 166777 Million
Investment : 174058 Million
Foreign Exchange Business : 287919 Million
Manpower : 8426
No. of Shareholders : 26488
1991 Opening of 50th Branch
1997 Openingof 100thBranch
2004 Openingof 150thBranch
2007 Openingof 186thBranch
Special Features
IBBL achieved stable growth and continuous progress to become one of the leading Private Sector Banks of the country.
The distinguishing features of IBBL are:
• All activities are conducted on interest-free system according to Islamic Shari'ah principles.
• Investment is made through different modes as per Islamic Shari'ah.
• Investment- income of the Bank is shared with the Mudaraba depositors according to an agreed upon ratio, ensuring a reasonably fair rate of return on their deposits.
• Aims to introduce a welfare-oriented banking system and also establish equity and justice in the field of all economic operations.
• Extend Socio-economic and financial services to individuals of all economic backgrounds with strong commitment in rural upliftment.
• Plays a vital role in human resources development and employmentgeneration particularly among the unemployed youths.
• Portfolio of investment and investment policy have been specially tailored to achieve balanced growth & equitable development through diversified investment operations particularly in the priority sectors and in the less developed areas of the national economy.
• Ensures Shari'ah compliance through regular and effective guidance of powerful and highly esteemed Shari'ah Council consisting of 13 members. Ratings
Rating Agency : Credit Rating Information and Services Limited (CRISL) Long-term : 'AA'
Short-term : ST-1
Basis of Rating:
wide branch network, strong market share, stable customer deposit base, diversified and innovative product line, experienced management team, contribution to corporate social responsibility, good financial performance, good asset quality, comfortable liquidity position and low cost of fund.
Core Banking Activities
□ Deposit Collection □ Expatriate Services
□ Industrial Finance □ Import Finance
□ Real Estate Finance □ Export Finance
□ Consumer Finance □Letter of Credit
□ SME Finance □ Bank Guarantee
□ TYeasury Operations □ Correspondent Banking
□ Brokerage Service □ ATM / Card Services
Membership/Affiliations
National Af filiations
Membership of Dhaka Stock Exchange Limited
IBBL has become member of the Dhaka Stock Exchange in the year 2006. Securities and Exchange Commission (SEC) has been approached for permission to operate the brokerage house. By this time, license for Custodian Depository Partnership (DP) from SEC and Central Depository Bangladesh Ltd. (CDBL) has been obtained. Now interested persons can open account with IBBL for custodian purpose Brokerage I louse function will be started on getting permission from SEC. Any body will then be able to buy and sell shares by opening B.O. Account with IBBL.
Membership in other National organizations
The Bank is also member of the under noted Local Organizations: a Bangladesh Institute of Bank Management (BIBM) b. The Institute of Bankers, Bangladesh (IBB) c. Bangladesh Association of Banks (BAB)
d. Bangladesh Foreign Exchange Dealers' Association (BAFEDA) e. Central Shari’ah Board for Islamic Banks in Bangladesh f. Islamic Banks Consultative Forum (IBCF), and
G. Dhaka Chamber of Commerce & Industry
Share I folding in National Bodies
The Bank participated in the share capital of Central Depository Bangladesh Limited (CDBL), which has been established for electronic book entry system to record and transfer the securities and change the ownership of securities without any physical movement of certificates.
The Bank also participated in the share capital of Karmasangsthan Bank (Employment Bank), a Bank established with Govt, initiative for creating employment opportunities for the unemployed youths.
International Affiliations
This Bank is a member of the under noted Foreign Organizations:
a. Accounting and Auditing Organizations for Islamic Financial Institutions (AAOIFI), Manama, Bahrain and has also become member of its Board ofTtustees.
b. General Council for Islamic Banks and Financial Institutions (GCIBFI), Manama, Bahrain and has also become member of the Executive Committee of GCIBFI,
c. International Chamber of Commerce-Bangladesh,
d. Islamic Financial Services Board, •
e. International Islamic Financial Market, and
F. International Islamic Center for Arbitration and Commercial Settlements (IICACS).
Shari'ah Council
The Shari'ah Council of the Bank plays a very important role in framing and exerting policy for strict adherence of Shari'ah Principles in the bank. The Council is represented by 13 members consisting of prominent Ulama having adequate knowledge in Fiqhul Moamalat, renowned lawyers and eminent economists to advice and guide on the implementation and compliance of Shari'ah principles in all activities of the Bank particularly on the modes of investment. The Council of the Bank is governed by its bye-laws and enjoys a special status in the Bank.
Management of IBBL
A Board of Directors consists of Directors, now, 13 in number elected from and amongst the foreigners and local shareholders provides the policy guidelines to Islami Bank Bangladesh Limited. The Board of Directors for smooth and efficient operations of the Bank forms an Execuitive Committee cinsisting the members of the Board Besides, a Management Committee consisting of the Senior Executives headed by the Chief Executive looks after the actual operations of the Bank.
Performance Highlights
• The largest network of Branches among Private Commercial Banks
• On-line Banking facilities in 95 Branches
• 3.8 million Deposit Customers
• Over 5 hundred thousand Investment clients
• 55% of total investment in Industrial sector
• Employment generation for more than 1 million people
• Poverty alleviation through investment to more than 5 (five) lac people
• Highest Taxpayer in Banking sector of Bangladesh
Deposits
Products
IBBL has so far introduced the following deposit products:
i. Al Wadeeah Current Account
ii. Mudaraba Hajj Savings Account (1 Year to 25 Years)
lii. Mudaraba Waqf Cash Deposit
iv. Mudaraba Special Savings (Pension) (5 Years and lOYears)
v. Mudaraba Muhor Savings Account
vi. Mudaraba Savings Bond (5 Years and 8 Years)
vii. Mudaraba Monthly Profit Deposits Scheme (3 Years and 5 Years) viii. MudarabaTerm Deposits(3 Months, 6 Months, 12 Months, 24 months and 36 Months)
ix. Mudaraba Savings Deposits
x. Mudaraba Special Notice Deposits
xi Mudaraba Foreign Currency Deposits
Mobilization
The year 2007 was another successful year of mobilization of deposit. Total deposit stood at Tk 1,66,777 million as on 31st December 2007 as against Tk. 132,419 million of the preceding year registering an increase of Tk34,358 million, i.e. 25.57% growth as compared to the growth rate of 16.70 % of the Banking Sector during 2007. The percentage of growth of Deposit in 2006 was 26.67%.
The share of deposit of IBBL in banking sector as on 31.12.2007 was as 7.48% from 7.74% as on 31.12.2006. •
Total number of depositors of IBBL increased to 38,02,709 as on 31st December 2007 from 3,207,131 of the preceding year, registering an increase of 18.57% as against increase of 18.56% as on 31.12.2006.
Tre nd of Dep os*
166,777
ro\7 7 9
fsS/62
2002 2003 2004 2005 2006 2007
^
Investments
Investment of the Bank increased to Tk. 1,74,058 million as on 31.12.2007 from Tk. 1,13,575 million as on 31.12.2006 showing an increase of Tk.60,483 million, i.e. 40.42% growth as against 17.24% growth of investment of the Banking Sector. This increased investment growth of the Bank in 2007 is due to the thrust given to promote investment for effective utilization of depositors' fund. The percentage of increase of Investment of IBBLin2006 was 25.26%.
The share of Investment of IBBL in Banking sector as on 31.12.2007 increased to 8.27%, from 7.67% as on 31.12.2006.
T lend of Inv estm ent
_/r 1 74.058
___——Zll3^75 " "T*Ti.ni i
._^^^^“ 75,659
46.281 51.00 7
2002 2003 2004 2005 2006 2007
__£™“®SH
Sector-Wise Investments
Sector-wise distribution of investment as on 31st December 2007 vis-i vis the corresponding period of last year is given below:
(Amount in Million Taka) sl 2007 2(O6 —
S" % to Total I % io Total
XiiKiunl ImrMmriil Amount Inietfmenl _! iDdwlrij! 7K,7g» |5 $| 43% 62,642.10 55 15%
’ ‘ """"""l 46/45.60 31011% 2r
3 l» «l I ■’-’ 8^69 14 6.12% h.ts 7 xti 7
4j Agriculture (including invcilment 4.492.53 3,10% 5.690 00 ' it.
in fertilizer and Agriculture
, Implement*)
1. , fnmcpuit ■ u.s 09 ' | 77% " j 7j2 40
i. Sp«ia! Mi in. . 4.492 53 I |(r,,
_Z_. (m,*l™ 4,043 28 2 79% 4.97X 97 '4 jx%
ToU| J imii umia iw#*/.
Welfare Oriented Investment (Special Scheme)
In addition to the normal Commercial and Industrial Investment operations, many special Investment Schemes like: i) Rural Development Scheme, ii) I louse-hold Durables Scheme, iii) Investment Scheme for Doctors, iv) Itansport Investment Scheme, v) Car Investment Scheme, vi) Small Business Investment Scheme, vii) Micro Industries Investment Scheme viii) Agricultural Implements Investment Scheme, ix) Housing Investment Scheme, x) Real Estate Investment Program, xi) Mirpur Silk weavers' Investment Scheme, xii) Poultry Investment Scheme and xiii) Small Transport Investment Scheme, targeting different economic groups, have been introduced by the Bank over the years. The schemes have been implemented and being expanded to meet the specific and welfare oriented needs of the different segments of people of the country.
The Bank, since its inception, has been working for the upliftment and emancipation of the under privileged downtrodden and neglected sections of the population and has taken up various financing schemes for their well being. The objectives of these schemes are to raise the standard of living of low-income group.
Outstanding amount of Investment as at the year end under different welfare Schemes:
(Amount in Million Taka)
^ “—I
So N*mcofShrm» 2003 2004 2005 2006 2007
1 Rural Development SU . m I 570X8 789 97 1.106 47 2.242 22 4665 89
11 House-hold Oumblcv St heme '1091 878.76 782X19 699 95 137132
III Imcshncm Scheme for Dotion I 10L0I 85 54 M 42 JIM
n Transport Imcement Scheme 1 2JII Mi 2,442.16 2,947.38 2 698 KX 4286 50
V Cut Investment Scheme I 33.58 3030 27.75 23 54 ’ 44 4K
vi Small Business Inv eminent Schcnc 395 75 501 26 629 81 VxTs 7)29 15
vii Micrvlndustnc* Investment 10 10 17.18 1021 624 vs y 2
Scheme
viii Agricultural Implemeniv 12.76 14 69 12/3 iT94 2L56~
Investment Scheme
ix I touting Investment Scheme 66156 672 10 609 78 506 75 646.81
x Real Estate Investment Program 3.41885 4.713 70 5.859.75 6.58285 7361 4|
Sali-luUl (Insntmrnl under Schemes) 8,427,00 10,145.66 12.050.19 13574.20 1962177
Rural Development Scheme (RDS)
Islami Bank Bangladesh Limited launched its Rural Development Scheme in 1995, to cater to the investment needs of the agriculture and rural sector of the country to create opportunity for employment and raising income of the rural people with a view to alleviating poverty. The Scheme has been aimed at achieving an integrated growth in rural areas and gradually developing model villages within 16 kilometer radius of the selected Branches.
By this time, the Scheme expanded its operations through 129 Branches oftheBankinl 0,023 villages of the country under 220 Thanas ol 61 Districts. The rural poor are provided investment facilities in agriculture and 343 selected off-farm economic activities in the rural areas starting from Tk. 10,000/- to a maximum limit ofTk.2,00,000/-. The amount ol cumulative disbursement through this Scheme stood at Tk. 13,969.01 million up to December, 2007. Rate of recovery against the running investment is 99%. At present the number of member under the Scheme is 5,16,725 out of which 4,59,885 are women i.e. 89% of the members are female. Beside the investment activities, successful members, so far, have been provided with 6,242 Tube-wells amounting Tk.12.12 million and 3,551 sanitary latrines amounting TE3.51 million on Quard-e-Hasana (profit-free investment) as a part of health and sanitation program of the Scheme. Moreover the Scheme is working in the area of consciousness rising of its members in order to establish moral and social standards Year-wise data for the last 5(five) years on performances of the Scheme are given below:
TY million
Piruevlsn Dec 03 De04 ^J*" Dec. 05 C™W Dec. 06 C$* Dee. 87 C””
VilUge 3.700 4230 14% 4/60 ~ 8% 8.057 77% 10.023 24%
Center 5,514 6.384 ' |6% 8,526 34% 15321 80% 18.897 23%
Member (Mile) 7,828 _ 9.808 25% 13,047 33% 32,766 151% 56,830 73%
Member (Ferrule) 122.637 1,53,657 25% 2,04,398 33% 3,76,809 84% 4,59,885 22%
Tool Member 1,30,46 5 1,6 3,46 5 25% 2,17.44 5 3 3% 4,09,57 5 8 8% 5,16,723 26%
Cumuhlive disbursement 2 92,3 59 4216 80 44% 60333 0 4 3% 9303 12 54% 13,969 01 50%
Outstanding Investment 570 88 790 00 38*/. 1106 50 40% 2342-21 102% 2,884 66 29%
Rate of Recovery 98% 99% -- 99% | | 99% _-_ 99% _j-_
Member's Sayings 228 74 322 50 41% 45910 42% 727 67 58% 1,05336 45%
Tube-well (Mos) 2.519 3.400 35% 4,421 30% 5425 25% 6242 13%
Sanitary Latrine (Nos) %J 1,509 56% 2204 46% 3,147 43% 3.551 13%
Field Officer (Nos) 639 731 I4%| 868 19% 1,436 65% 1,819 27%
Household Durables Scheme
Among the above schemes, the objective of Household Durables Scheme is to increase standard of living and quality of life of fixed income group by providing them investment facilities to purchase different household durable items.
As on 31 December, 2007, investment under Household Durable Scheme was Tk.1371.31 million among the 27,010 investment clients as againstTk. 699.95 million among the 27,349 investment clients in 2006. Investment in Industrial Sector
As per Investment Policy of the Bank top priority has been given towards the Industrial development of the country. The Bank's Investment portfolio is gradually being increased towards industrial finance along side commercial investment.
Bank's investment in industrial sector is substantially higher compared with those of other commercial Banks. Total Investment for projects finance and Working Capital stood at Tk.78,788.5 million as on 31st December, 2007 as againstTk. 62,642.10 million as on 31.12.2006 resulting in 25.77% growth.)
Sector Wise Total Investment In Industrial Sector as on 31.12.2007
lHp«—i"i»**»l9
’•“* ^^ X Poteet
IwXmm investment ^
J G8ffw»nh
•1 2! W? a0 .417 25 5 63 2 90
iw' M I 1644 I 1?W »»; 3 73 192
q SwHK 25 IM 1W Ml 21 0 49 0 25
g) Acer. w-« M 11 Ml 1»» US °41 _
M lM 17144*44 4444 44*4*4 40 11.04 5 09
2 2 T.iMh:
VI SyeMjUt 54 144 5 5 H«X ZM*!* 32 86 16 93 _
W.BveO'Co'T'lxw*.
b) Wuwp 4 2 2*45 raw MW 51 4 94 2 54
q OjwerertM Ji •• 744 1472 17 2 00 1 03
g) KnusnaComsOTO km U ’ll! JUZ »7H’» 344 1 77 _
,1 SfKWM1.ni 4 7M W nW** 1_M 088
IjMjIA 111 IM**** MSB11 44414 *r 44 95 23.16
T _C«m«_ 2 44214 *W» 1141 M 1 98 1 02
4 CM-»A» U 51111 34*41 Ml *3 U2 0 58
5 r^suiw *4 1*1*4 11*0“ *”71 0_39 0 20
a arc*. « 71*0 173*4 347 n 0 31 0 16 _
_; "it 10 0 0O 71 52 21 52 0 03 0 01
* IWUiyw'gt * »»» 37*5 W 4452 47 5 65 2 91
* PUmvcWW '3 70*33 422 41 1530 74 194 1 00
ioThm(iuI4 01* *M* 4M am 0 66 0*5
II wwqpwiyu 3* 177 45 [ pin 707 M 0 90 0 46
. , 5 »r - J 10 343*7 344 64 4*4 41 0_59 0 31
’ 14 Po-Wjfwcrncjyj I 3 70 17 43* 04 *0*4 3 0 77 0 4 0
14~ Ayo Bi wd Hawi , 34* l^?M 3*3013 «0»l* 5 20 2 66
I* _CM*_ 7 *64*7 334* 1263 3’ 4 13 2 13
PUMA » 42 7J 14* w IMM 0 24 o 13 .
T7 3 JM 7» P*M 74 7 47 0 95 0 49 _
If Alrow. J *«*0 E.8 ,MJ1 0 17 0 09
'i '^ * """* 3« ”*0" '***** 30**7 ?J8 12?
jo. tapuwa. i» mi ihh JILS o*Z 22*
;i i ..... « *07* ITO Qi 3107? 0.32 0 16 .
a |hd _____ 13 135 M 30* IKA OU 0 09
33 5MM5WM _. 4 WK 134 10 1®L!» 0 75 |_O38_
H rye ; *4 7* 11*7 110 43 0 14
_H. M UMM 4700*3 «".4_| 1° ” 222
_ »»!mI 3*4 144MW I IURII 44HR 44 03 33.M
~ »WW. 1H* ?M7J* I 411M.M 1I1MII 100 00 »1W
To*l UIVMMIMI of CM # 152900
D«ri*
(Excluding Investment Sheree & Securities)
Role of I BBL in Development of SMEs
Small and Medium Enterprises (SMEs) play an important role in the economic and social life and can generate a large number of employments in the traditional and non traditional sectors. Keeping this in view, IBBLhas set up a separate Division named Small Enterprise & Consumer Investment Division (SECID) with effect from January 01, 2006 for Small Enterprises financing in compliance with the Bangladesh Bank guidelines. Moreover, IBBL is financing Medium Enterprises through two other divisions named Project Investment Division (PID) and General Investment Division (GID).
Investment in SMEs
The investment of IBBL in the SMEs was Tk 17163.20 million as on 31 December, 2007, which was about 9.86% of total investment of the bank The quantum of investment signifies the commitment of the Bank towards rapid growth of the economy and contribution to increase the per capita income of the people by creating employment opportunities. Foreign Exchange Business
IBBL is playing a very important role in the Foreign Exchange Business of the Country. Total Foreign Exchange Business handled during the year 2007 was Taka 287,9)9 00 million The comparative figures are given below:
(Amount in Millmn hb)
2007 I 2006 I % of growth in Particular* Amount I % of | Amount % of I 2007 over 2006
Total I total । Import 1,37,086 00 ~47.61% | 96,87000 48 00% 4152%
EMpofl 66,690 00 23,16% | 51,13 3 001 25 34% I 30 42%
Remittance 84,143,00 29 22 ; 53,819 GO ~26.67% 56 34%
Total Foreign Exchange business handled by the Bank demonstrated a growth of42.66% in 2007 compared to 36.70% growth of2006.
Import
During the year 2007 bank opened 32991 import Leners of Credit as against 29,952 Letters of Credit in 2006. Major items of import consist of the following:
_ _ (Amount in Million Taka) _ SI. Nunc of Cuounodity % ol IBBL % of NmkxmI Contnbuuoa of IBBL
No. IBBL Import Nation*] Irngort in Nauonal Import
" Capital Machinery & othen 28,031 20 45% 1,24 400 9 83% 22 53%
Machinery
2 Textile Fabric* 4 15.746 1149% 1,47/00 1167% 10 67V.
_ Atcowrxi for Garment. 3 Cotton 1129?- bZ8% H*90_ _2*?1? 26 2 3%
« fertilizer 6316 4 61% 36,0X • 2 15% I7jf,
5 Wheal 6,306 4.60% 43,000 3 40% 14 6 7%
6 Oiho Iron A Sleet Produce 7,3 5 3 5 36% 56000 4 43% 13 13%
Chemical 4 Chemical 5,113 3.73% 60,000 4 74% 15 2%
Prodocti . _ _
* Edible Oil 3,759 2 74V. 55,500 4 39% 6 T7%~
9 H» 1,851 I 35% 18,500 1 46% 10 01%
10 Yam 6,959 5.08% 36,500 219% 19 07%
H Rte* 6/37 4 77% 36/00 _2J?% 17 86%
I? ClaAxz 1,562 I 14% 16,000 1 26% 9 76%
13 Puhei (all tom) 2 009 | 47% 16 500 1 30% 1218%
Petroleum A Petroleum 31 0 03% 1,40/30 11 11% j 0 03%
Products , I
15 Plaatk 102 0 07% 26.500 I 2 09% 0 31%
16 Mik a Dairy Products 492 * 0 36% 9.800 I 0.77% 502%
17 Oil Seeds 5 I 0 00% 4,300 0 34% 0 12%
18 Spec A From 1,|4| p/3% 7,800 0 62% 14 6 3%
l» Tanning Materials 189 0 14% 6,100 048% 3 10%
2 0 Others 25,37 5 18 51% 3/4,100 27 99% 7 17%
Total
Export
During the year 2007 bank handled 29087 Export Bills as against 26,063 Expon Bills in 2006 Major export financed items are the following:
(AkwbI in Mitli«« Taku) ’L Name of Ccnmodity IBBL i ^f IBBL ^ Nai-maf k% ^ '^ ConirtMum of IBBL
; 1 Export n National Erm
_ I RMG 53,009 , 79 3 5% 5 61800 66 77V. 9)2% _J
| 2 Fah A. Shrimp ~~ 1,827 I 2 70% 36/10 4 26% 5 03%
' 3 Jutt Goods 2,5 56 311% 26,830 3 15% 9 5 3%
4 RawJutt 26 1 0 01% 10,9001 121% 024%
5 Leather 31 0 05% 25,470 2 99% 012%
6 Tea j 2 0 00% 510 0 06% 0 39%
7 Phen 9/39 1315% 1/3,070 21 49% 05%
I Total 66,690 1*9% j 1/1,190 I 1*9% 711%
Growth of Foreign Exchange Business 2002 to 2007
—♦—r-oc* _«_ EjQQr R«rr«urca
37 0*1
i SIJM^-—
33 7M 38 ^3X33
- — — __^_- j#^—
- nje( -
®en 16M
2002 2003 2004 2005 2006 2007
Foreign Remittance and International Correspondents
The Bank started mobilization of Foreign Remittance from its very inception and playing significant role in facilitating expatriates working abroad with remittance services. Over the last few years IBBL is holding the 1st position among all 52 Banks of the country in respect of remittance business.
Foreign Remittance of the Bank witnessed phenomenal growth of 56.34% in 2007. The total remittance business of the bank during the year stood at Tk. 84,143 million which is Tk30,324 million higher than the total yearly remittance ofTk. 53,819 million received in 2006
Customer Service Department has been strengthened for meeting complaints of expatriates and Exchange Houses. We update the exchange rate with the changes in the market while the Exchange Houses are funding through contacting dealing room directly.
A new popular product called Instant Cash Payment’ has been introduced this year which facilitated the urgent need of the expatriate beneficiaries. Moreover, various steps have been taken to update the automation of remittance operations for which the services for foreign remittances could be made tailored to the needs of the expatriates and their beneficiaries.
More new countries as potential remittance source have been brought under the coverage of drawing arrangements. Those are Singapore, Canada, Italy, Greece and Malaysia. To mobilize significant amount of foreign exchanges for the country, the bank established Taka drawing arrangements with more than 84 Banks / Exchange Houses. In addition. IBBL has got 884 correspondent networks in 90 countries. This correspondent relationship accrued substantial benefits to the Bank by way of expansion in its service areas related to foreign trade and foreign exchange business. The Bank endeavors to increase its banking relationship with international financial institutions to offer smooth and efficient services to the customers. It has also become member of SWIFT (Society for Worldwide Inter-Bank Financial Tele-communication) to facilitate foreign trade businesses and foreign remittances. For mobilization of remittance businesses, bank has deputed two representatives to the Kingdom of Saudi Arabia, three in UAE. and contemplating to depute more representatives in some other remitting source countries
Display Boards bearing “Probashi Grahok Seba Desk" were set in all the Branches to facilitate quick and personalised service to the expatriate clients to give due importance to them.
Information and Communication Technology
for Automation of IBBL
The Information & CommunicationTechnology Division (ICFD) of IBBLis responsible for developing, maintaining, deploying new computerized applications and subsequent technology & business supports along with related infrastructure development & maintenance. IBBL recognizes that it has extra load at its branch counters due to mass banking. To cope with this extra load. IBBL is in the process of introducing alternative delivery channels like internet banking. ATM (Automated Teller Machine). POS (Point of Sale), credit cards, telephone banking with the help of advanced technology and improve overall performance by integrated banking applications and office automation software ICTD has been playing a vital role in equipping all the branches, zones and different departments in Head Office with required number of computers, peripherals & appropriate software. IBBL is the only bank in Bangladesh that has in house developed large-scale online banking software by its own computer pro grammers. IBBL also possesses the highest number of online banking branches in Bangladesh covering whole Dhaka city & almost all major districts.
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1) elBS (electronic Integrated Banking System)
Before 2005. IBBL used to maintain a branch based banking software named 1BBS. which has become obsolete to meet today's banking needs. With a view to developing a Wide Area Network (WAN) enabled & Shari ah compliant banking system, IBBL in 2001 undertook an in-house Intranet based banking project named elBS having 3 major modules: General Banking (GB). Investment & Foreign Exchange Alhamdulillah we successfully developed elBS software modulewise and integrated all the modules and deployed the systems
2) Online Banking
Since March 20, '06 we have gradu-ally brought 95 branches under online banking using Fiber Optics. DDN and Radio lank Currently we are providing all branch banking facilities to our clients which will be extended to internet banking in near future. Our existing online banking activities includes: balance inquiry' & printing of ministatement, cash deposit and withdrawal. fund transfer and inward clearing.
3) Online ATM
Online ATM service has been introduced from July. '06. Out of 53 Offline ATM branches, 45 branches have been converted to online ATM branches and ATM Card holders of these branches are drawing money round the clock from their accounts directly from 21 ATM booths all over the country’. We are exploring possibilities of utilizing ATM and POS services of other networks and accruing IBBL's own ATMs and introduce credit cards to improve customer service
4) Online Data Center
In order to preserve real-time backup data of the connected branches, prepare a strong MIS (Management Information System) and enable ATM online transactions, an Online Data Center has been set up at IBBL Head Office.
5) SMS Banking
We have successfully introduced SMS banking using mobile phone from our branches for our clients. Expatriates and benificiary could be informed about their sent money by this SMS, if they required. By SMS service a client can know his balance, statements
and even transfer fund from one account to .mother.
6) SWIFT
IBBL is a member of SWIFT since 1999. All 38 AD branches are connected with main SWIFT server at Head Office for rendering better services to the importers, exporters & remittance business. Steps have been taken to replace the existing dial up connectivity of SWIFT by Service Bureau Lease line to meet the obligatory’ requirement of the SWIFF Authority. This will speed up downloading time and reduce expenditure
7) REUTERS
IBBL is a member of REUTERS. This allows IBBL to receive regular updated information regarding exchange rates, metal markets & other commodity prices, which helps IBBL to make correct & prompt businessdecision.
8) Foreign Remittance Automation
In order to handle foreign remit tance transactions efficiently, we have fully automated the system.
9) Faster Remittance Processing Previously IBBL used to send remittance messages to remote branches through courier services. It took almost 2/3 days for the messages to delivery & payment at clients' end. Now we are using email and internet facilities in all the branches to transmit foreign remittances 03/04 times in a day. We developed auto-generated SMS for remittance beneficiaries and started providing instant cash / express cash / Xpress money / instant money services.
10) Web portal/Internet Banking We developed an in-house web porta) containing internet banking facilities and are operating it from this year for our foreign remittance and extranet clients. Corporate clients may use this service to know their account information by internate.
Human Resources Management
Total number of employees of the Bank increased to 8426 including 61 female officers as on 31st December 2007 from 7459 including 38 female officers as on 31st December 2006. In 2006, total 1,139 officials were recruited to meet the additional requirement of human resources to handle the increased volume of business, new branches and also bring all the officials within the training program of-the -
Bank. In order to keep pace with the additional human resources requirement and to enhance the employment opportunity of the country’, periodic recruitment is done as per need of the Bank.
lYaining and Development The norms and principles of Islami bank is innovative and distinctive. Hence, the importance of training & mentoring of the officials and staffs is inevitable. With a view to implementing a new system and creating skilled manpower for conducting the banking activities with expertise the training acad emy was formed in 1984. An Academic Council has been constituted consisting of Directors, Executives, Shariah Scholars, reknowned academicians and representatives of reputed Institutions.
The academy consists of two parts:
l) lYaining
2) Research.
Training;- IBTRA conducted training courses and workshops. The courses include Islamic Banking Law and Practice, Investment Operation & Management, Foreign Exchange, Shariah Based Audit & Inspection. Besides, orientation, induction, foundation and motivation courses are conducted round the year. Apart from this, an Executive Development Programme’ has been introduced since 1988 for enriching knowledge and thought of Executives of the Bank.
The Bank introduced annual award for best three students of the Department of Banking and Finance of Dhaka University with 'Islamic Banking’ as special subject since 1994.
A rich library is constituted in the academy. More than 5 thousand books on different subjects including Economics and Banking are available here.
There is an opportunity to provide with Internships facility to the students of different Universities. The academy has commenced Islami Banking Diploma in 1998.
CORPORATE SOCIAL RESPONSIBILITIES
Environmental awareness:
At present we are resuming 950 projects under 22 industrial sectors. In connection with this we
have collected environmental fitness certificate from concerned authority in every running projects.
Social services through Islami Bank Foundation: SadakahTahbil was formed in 1983 and is performing social corporate responsibilities from its inception. Islami Bank Foundation is the modified form of Sadakh lahbil. 1BF is involved in many welfare-oriented activities like health care, relief and rehabilitations, educational program, income oriented activities, eradication of poverty for supportingour distressed people. Income Generating
Programmes:
• Rickshaw project
. SewinglYaining project
• Poultry project
• Rural Health Worker lYaining project
• Milch Cow rearing project
• Self-employment project
• Small Business project
• Small Industry project etc
Health service:
• Island Bank Hospital
Islami Bank Hospitals served the poor and common people through providing medicine facilities, surgical & gynecological service, child care, consultation on eye and nose, ear & throat, urology, neurosurgery, skin care, cardiology etc in a very cheap rate. The hospitals are situated 2 (two) in Dhaka, 2 (two) in Rajshahi, 1 (one) in Khulna and 1 (one) in Barisal district. They are serving well with confidence from their very foundation.
• Islami Bank Community Hospital
There are 6 (six) Community hospi -tals situated in Satkhira, Manikgonj, Rangpur, Jhenaidah, Dinajpur and Faridpur. Another 3 (three) are going to establish in Naogaon, Mymensingh and Feni with in a short time.
• Mobile Eye Treatment Program We have scarcity of sufficient eye specialists for proper treatment of our poor people in the country. So Islami Bank has introduced a program of mobile eye treatment countrywide among poor people. About 300 people have been taken the service of eye treatment in 2007.
• Charity Hospital
Islami Bank Foundation (IBF) directs some charitable activities of medicare in different parts of the
country. Both Allopathic & Homeopathic treatment are served there.
Islami Bank Medical
College
Islami Bank Medical College, Rajshahi runs its activities satisfactorily. The college introduces its studies-scssion from 1 st year to 5th year. The construction of the hospital building is about to finish.
• Nursing Institute
We have scarcity of competent nurse in our country. And this is why standard treatment is always hampered. Considering this. IBF has established a nurse training institute in Rajshahi.
• Islami Bank Health Technology Institute
We suffer from insufficiency of competent manpower in pathological sides in our hospitals, clinics, & diagnostic centers. IBF initiated a institute to over come the shortage. Presently all sorts of pharmaceuticals, dentistry, imaging and pathological training are running well in the institute. Government has given permission for opening 4th year diploma course here.
• TYaining Program on Midwifery Many of our progenitors and new born babe die for our wrong treatment of midwives. Islami Bank Foundation took a vast programme for training of midwives in hospitals and community hospitals.
Educational programmes:
• Technical Education:
To solve the unemployment problem in the country Islami Bank Foundation has established 5 (five) technical institutions in the country including Dhaka City. Technical Education Board has already permitted 2(two) other institutes in Dhaka city and l(one) in Bogra district.
• Islami Bank Internationa] School & College and Islami Bank Model School & College:
There are many English & Bengali medium Schools in Dhaka city who have not fulfilled the requirements of prescribed syllabus by the board. To build up a prosperous generation in future IBBL has founded Islami Bank International School & College at Green Road and Islami Bank Model School & College at Mirpur in Dhaka.
• Financial support for educational institutions.
• Lump-sum grant for poor
•students etc.
Humanitarian Help Programmes:
• Establishment and operation of orphanages
• Provided fund for the marriage of poorgirls
• Assist indebted people
• Help distressed wayfarers and such other activities
Relief & rehabilitation
Program for Flood affected people
• IBBL distributed relief goods of 1 Crore 50 Lac taka.
• IBBL staff and officers donated their one day's salary.
• Islami Bank Foundation distributed 36 Lac taka.
• Islamic Development Bank (IDB) extended their help for the flood affected people by donating 2 lac and 80 thousand dollar which distributed by IBBL
• Different Branches of the Bank carried out the relief distribution in different affected areas.
Relief & rehabilitation Program for the affected People of Cyclone ”Sidr’
• IBBL distributed relief goods of Taka 3 crore.
• IBBL donated Taka 50 lac to the Chief Adviser's relief fund.
• IBBL donated Taka 30 lac to the Chief of Army Staff relief fund.
• Islami Bank Foundation donated Taka 20 lac.
• IBBL staff and officers donated their one day's salary.
• Islami Development Bank extended their help for the affected people by donating Taka 2 lac dollar which distributed by IBBL
• Different Branches of the Bank carried out the relief distribution in different affected areas.
Other Activities:
• Scholarship Program
• Ideal Forkania Madrasha
•Distressed Woman Rehabilitation Center
• Service Center
• Monoram: Islami Bank Crafts & Fashion
Success & recognition of Islami Bank Bangladesh Limited with distinguishing features:
o Countries like Uganda & Nigeria wanted technical assistance to start Islami Banking. Besides, Bank of Sylon, a leading bank in Srilanka has taken training on islami bank-
ing from IBBL
o The institute of Cost & Management Accounts of Bangladesh awarded Islami Bank Bangladesh Limited as the first corporate bank in Bangladesh for theyear2007.
o Global Finance’ a economy based magazine in Newyork awarded IBBL as the best banks in Bangladesh for the year of 1999, 2000,2004 & 2005.
o International Credit Rating Institution ’Bank Watch’ acknowledged Islami Bank Bangladesh Limited as the market leader in Bangladesh.
o Islami Bank Bangladesh Limited has been sustaining the first position in Bangladesh for an era.
o Credit Rating Information and Services Limited, (CRJSL) a leading rating company in the country rated IBBL as grade AA for long term & ST-I for short term.
o Islami Bank Bangladesh Limited is recognized as the best bank home & aboard.
o Islamic Development Bank (IDB) recommends any bank of any country to IBBL if they ask for any counseling on Islami Banking.
o Islami Bank Bangladesh Limited is one of the directors of General Council for Islamic Banks & Financial Institutes, the international forum of Islami Banks & Financial Institutions.
o Islami Bank Bangladesh Limited is one of the members of Trusty Board of Accounting & Auditing Organization for the Islamic Financial Institutions.
o Islami Bank Bangladesh Limited paid more than Tk. 661 crore to the National Board of Revenue for 25 years.
o Islami Bank Bangladesh Limited has emerged as the market leader in Import & Remittance business in 2007. IBBL dealt with import business of Tk 13709 crore & Tk.. 8414 crore in remittance business. Besides it dealt with export business of Tk.6669 crore for the year 2007.
o IBBL plays an important role for socio-economical development of the country for 25 years since its inception.
o IBBL continues its endeavor to serve the downtrodden people of rural areas through its scattered network of 186 branches.
olt has already commenced online banking service among 95
branches by self-developing software.
o Islami Bank Bangladesh Limited serve the nation through its distinguished institution TBF' contributing in social development projects like Medicare, Vocational Training, Daoah & Rehabilitation programs.
FUTUREPLAN
o Manpower of the country is our asset, we want to develop our human-resources.
o We like to strengthen the program of eradication of poverty.
o We like to enrich our selfestimation through solving unemployment problem.
o We like to reduce the gap between urban & rural life style.
o We want to open branches in undeveloped areas.
o We like to stretch industrial sector by expending our industrial investment.
o We like to invest in medium & small industrial sectors through which investment & asset may not be coiled in some of listed people or selected areas.
o We have a plan for developing a ’Rural Development Organization' for reaching the remote area of the country.
o We have a plan to initiate a 'Khidmah card' contesting against conventional 'Credit Card' considering Islamic Shariah.
o Expatriate Bangladeshis contribute a lot in the national economy. We are going initiate new products for them by which they can invest their money after coming back to the country. We think they could apply their capacity in the project financing in home as they depicted in aboard. Thus they may be rehabilited properly. More over they could assist for building up new industrial zone through remitting continuously.
We dream for roaming all over the world with the assistance of Islami Bank Bangladesh Limited. And as a part of the dream we are planning for opening branches & booths in different parts of the world specially in London & Dubai.
We wish to settle ourselves in the hearts of the people of the country and their cordial utterance should be “Islami Bank. My Bank, Our Bank."