TABLE OF CONTENTSTropics

Page

CHAPTER 1:.........................................................................................................................................2

1.1:History of IBBL:..............................................................................................................................2

1.2:Mission of the Bank.........................................................................................................................3

1.3:Vision of the Bank...........................................................................................................................3

1.4:Strategic Objectives.........................................................................................................................4

1.5:Branches of IBBL in Bangladesh by division of areas....................................................................5

1.6:Corporate information at a glance (As on July, 2016):...................................................................6

1.7:Structure of the organization:..........................................................................................................7

CHAPTER 2:.........................................................................................................................................8

2.1:Definition of an Islamic Bank:.........................................................................................................8

2.2:List of Islamic Banks in Bangladesh...............................................................................................8

:2.3Principles of Islamic Banking:.........................................................................................................8

Mudarabah...........................................................................................................................................8

Ijarah...................................................................................................................................................10

2.4:Objective of the Bank:...................................................................................................................11

2.5:Problem Specific to Islamic Banking in Bangladesh.....................................................................11

CHAPTER 3:.......................................................................................................................................14

Islamic Products & Services of IBBL..................................................................................................14

3.1:Deposit Products............................................................................................................................14

3.2:Investment products.......................................................................................................................14

3.3:Rural Development Scheme'..........................................................................................................15

3.4:(1).NRB(Non Resident Bangladeshi) Entrepreneurs Services......................................................16

3.5:(2)Sme Information........................................................................................................................16

3.6:(3).Foreign exchange service:........................................................................................................17

3.7:(4) Locker service:.........................................................................................................................18

04:Conclusion:.....................................................................................................................................21

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CHAPTER 1:

1.1:History of IBBL:In the late seventies and early eighties, Muslim countries were

awoken by the emergence of Islami Bank which provided interest free banking facilities.

There are currently more than 300 interest free institutions all over the world. Islami Bank

now a days not only operate in almost all Muslim countries but have extended their wings to

the western world to serve both Muslim and non Muslim customers. In case of Islami

Banking, the establishment of Mitghamar Local Savings Bank in 1963 is said to be a

milestone for modern Islami Banking. The history of Islami Banking can nevertheless be

traced back to the birth of Islam.

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

reorganise its economic and financial system as per Islamic Shariah (legal framework of

Islamic Ideology).

In 1978, Bangladesh recommended in Islamic Foreign Minister Conference in Senegal

towards systematic efforts to Islamic Banking.

In 1980, Foreign Minister Conference in Pakistan where Bangladesh Foreign Minister Prof.

ShamsulHoq, proposed for taking steps for Islamic Banking. Further, Bangladesh Bank sent

representation abroad to study Islamic Banking System. Also, International Seminar held in

Dhaka inaugurated by Bangladesh Bank Governor for early introduction of Islamic Banking.

In 1981, President of the Peoples Republic of Bangladesh addressed the 3rd Islamic Summit

Conference held at Makkah and Taif suggested, ”The Islamic countries should develop a

separate banking system of their own in order to facilitate their trade and commerce.”

In 1982, IDB visited Bangladesh for study. They found contributions done by Islamic

Economics Research Bureau (IERB) and Bangladesh Islamic Bankers Association (BIBA);

they mobilized the seminars, public opinion through symposia & workshop. Professional

activities reinforced by Muslim Businessman Society (now reorganized as Industrialists and

Businessman Association). The body mobilized mainly equity capital for emerging Islamic

Bank. Finally, in 1983 Islami Bank Bangladesh Limited (IBBL) came out to take the

challenge of doing banking business.

Islami Bank Bangladesh Limited (IBBL) is considered to be the first interest free bank in

Southeast Asia. It was incorporated on 13-03-1983 as a Public Company with limited liability

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under the companies Act 1913. The bank began operations on March 30, 1983, with major

share by the foreign entrepreneurs.

IBBL is a joint venture multinational Bank with 63.92% of equity being contributed by the

Islamic Development Bank and financial institutions. The total number of branches in 2010

stood at 232. Now the authorized capital of the bank is Tk. 10,000 million and Paid op capital

is Tk. 6,177.60 million.

 1.2:Mission of the Bank

To establish Islamic banking through the introduction of a welfare oriented banking system

and also ensure equity and justice in the field of all economic activity balanced growth and

equity development through diversified investment operations particularly in the priority

sectors and less development areas of the country.  To  encourage  socio-economic  uplift 

and  financial  services to  the  low  income  community  particularly  in  the  rural  areas.

1.3:Vision of the Bank

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

considered a leading Islamic Bank by reputation and performance. Besides,

To establish and maintain the modern banking technology, to ensure the soundness and

development of the financial system based on Islamic principles and 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 stability of financial

system.

Try to encourage savings in the form of direct investment

Try to economic investment particularly in projects, which are move likely to lead to higher

employment.

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1.4:Strategic Objectives

To ensure customers' satisfaction.

To ensure welfare oriented banking.

To establish a set of managerial succession and adopting technological changes to ensure

successful development of an Islamic Bank as a stable financial institution.

To prioritize the clients welfare.

To emerge as a healthier & stronger bank at the top of the banking sector and continue stable

positions in ratings, based on the volume of quality assets.

To ensure diversification by Sector, Size, Economic purpose & geographical location wise

Investment and expansion need based Retail and SME/Women entrepreneur financing.

 To invest in the thrust and priority sectors of the economy.

To strive hard to become a employer of choice and nurturing & developing talent in a

performance-driven culture.

To pay more importance in human resources as well as financial capital.

To ensure lucrative career path, attractive facilities and excellent working environment.

To ensure zero tolerance on negligence in compliance issues both sharia’h and regulatory

issues.

To train & develop human resources continuously & provide adequate logistics to satisfy

customers’ need.

To be excellent in serving the cause of least developed community and area.

To motivate team members to take the ownership of every job

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1.5:Branches of IBBL in Bangladesh by division of areas

Divisions Number of branches

Barisal Zone 25

Bogra Zone 19

Chittagong North Zone 19

Chittagong South Zone 25

Comilla Zone 21

Corporate Branches 4

Dhaka Central Zone 15

Dhaka North Zone 22

Dhaka South Zone 30

Khulna Zone 27

Mymensingh Zone 22

Noakhali Zone 20

Rajshahi Zone 18

Rangpur Zone 17

Sylhet Zone 20

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1.6:Corporate information at a glance (As on July, 2016):

Date of Incorporation 13th March 1983

Inauguration of 1st Branch(Local office, Dhaka)

30th March 1983

Formal Inauguration 12th August 1983

Share of CapitalLocal Shareholders 41.77%

Foreign Shareholders 58.23%

Authorized Capital Tk.10,000.00 million

Paid-up Capital Tk.6,177.60 million

Deposits Tk.244,292.14 million

Investments (including Investment in Shares) Tk.214,615.80 million

Foreign Exchange Business Tk.462,370.00 million

Number of Branches 212

Number of SME Service Centers 20

Number of Shareholders 52,164

Manpower 9588 Address of the Head office

Islami Bank Tower

40, Dilkusha C/A

Dhaka – 1000

BangladeshGPO Box no. :  233

Telephone :  (02) 9563040(Auto Hunting), 9560099, 9567161, 9567162, 9569417

Telex :  642525 IBANK BJ 632403 IBANK BJ 671620 IBANK BJ

Fax :  880- 2- 9564532, 880 -2- 9568634

SWIFT :  IBBLBDDH

Cable :  ISLAMIBANK

E-Mail      :   info@islamibankbd.com

Web :  http://www.islamibankbd.com

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1.7:Structure of the organization:

                                                                        Chairman

                                                            Vice- Chairman

                                                           Board of Directors

                                                            Managing Director

                                                      Deputy Managing Director

                                                       Executive Vice President

                                                        Senior Vice President

                                                               Vice President

                                                         Assistant Vice President

                                                         Senior Principal Officer

                                                                Principal Officer

                                                             Probationary Officer

                                                        Assistant Officer Grade- I

                                                        Assistant Officer Grade- II

                                                        Assistant Officer Grade- III

   

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CHAPTER 2:

2.1:Definition of an Islamic Bank:

An Islamic bank is a financial institution that operates with the objective to implement and

materialize the economic and financial principles of Islam in the banking arena.

The Organization of Islamic Conference (OIC) defined an Islamic Bank as a financial

institution whose statutes, rules and procedures expressly state its commitment to the

principles of Islamic Shariah and to the banking of the receipt and payment of interest on any

of its operation.

2.2:List of Islamic Banks in Bangladesh

1 ICB Islamic Bank

2 Islami Bank Bangladesh Ltd

3 ShahjalalIslami Bank

4 Sonali Bank Limited

5 First Security Islami Bank Limited

6 Exim Bank Limited

7 Al-ArafahIslami Bank Limited

8 Social Islami Bank Limited

:2.3Principles of Islamic Banking:

Mudarabah"Mudarabah" or Profit-and-loss sharing contract is a kind of partnership where one partner gives

money to another for investing it in a commercial enterprise. The capital investment should

normally come from both partners. Both should have some skin in the game.

The Mudarabah (Profit Sharing) is a contract, with one party providing 100 percent of the capital

and the other party providing its specialized knowledge to invest the capital and manage the

investment project. Profits generated are shared between the parties according to a pre-agreed

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ratio. If there is a loss, the first partner "rabb-ul-mal" will lose his capital, and the other party

"mudarib" will lose the time and effort invested in the project The profit is usually shared 50%-

50% or 60%-40% for rabb-ul-mal.

According to economist Tarik M. Yousef, long-term financing with mudarabah or musharakah

(both profit-and-loss-sharing mechanisms) is "far riskier and costlier" than the long term or

medium-term lending of the conventional banks. As a consequence there has been a

"divergence" between the theory of equity-based Islamic finance and the reality of murabahah-

dominated practices of Islamic banks

 Musharaka (Partnership based investment):The word “Musharaka” has been derived from Arabic words “Sharikat” or  “Shirkat”. In

Arabic Sharikat and Shirkat means partnership or sharing. Thus the word “Musharaka” means

a partnership between two or more persons or institutions.

Musharaka means a partnership established between two or more persons or institutions for

purpose of a commercial venture participated both in the capital and management where the

profit may be shared between the partners as per agreed upon ratio and the loss, if any is to be

borne by the partners at per capital/equity ratio.

In this case of Investment, “Musharaka” meaning a partnership between the Bank and the

Client for a particular business in which both the Bank and the Client provide capital at an

agreed upon ratio and manage the business jointly. Share the profit as per agreed upon ratio

and bear the loss, if any in proportion to their respective equity.

Bank may move itself with the selected Client for conducting any Shariah permissible

business under Musharaka mode.

Features of Musharaka: Bank and client both supply capital unequally/equally.

Profit is divided as per agreement and actual loss is divided as per equity.

Client will maintain all accounts properly bank or its agent may verify or audit it.

Banks can advice the client in such a business in respect of the businesss

All partners can participate in the management of the business and can work for it.

The liability of the partner is normally unlimited. Therefore, all the liabilities shall be borne

proportionately by all the partners.

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Bai-Muajjal (Deferred Sale):Meaning and Definition:“Bai-Muajjal” means sale for which payment is made at future fixed date or within a fixed

period. In short, it is sale on Credit. 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.

Features of Bai-Muajjal:  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.

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

the bank.

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.

It is also permissible to document the debt resulting from Bai-Muajjal by a Guarantor, or a

mortgage or both, like any other debt. Mortgage/Guarantee/Cash security may be obtained

prior to the signing of the Agreement or at the time of signing the Agreement.

All goods purchased on behalf of a Bai-Muajjal agreement are the responsibility of the

bank until they are delivered to the client.

The bank must deliver the goods to the client at the time and place specified in the

contract.

The bank may sell the goods at a higher price than the purchase price to earn profit.

The price is fixed at the time of the agreement and cannot be altered.

The bank is not required to disclose the profit made on the transaction

IjarahIjarah means lease, rent or wage. Generally, the Ijarah concept refers to selling the benefit of use

or service for a fixed price or wage. Under this concept, the Bank makes available to the

customer the use of service of assets / equipment such as plant, office automation, motor vehicle

for a fixed period and price.

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Baisalam:Baisalam means a contract in which advance payment is made for goods to be delivered later

on. The seller undertakes to supply some specific goods to the buyer at a future date in

exchange of an advance price fully paid at the time of contract. It is necessary that the quality

of the commodity intended to be purchased is fully specified leaving no ambiguity leading to

dispute. The objects of this sale are goods and cannot be gold, silver, or currencies. Barring

this, Bai Salam covers almost everything, which is capable of being definitely described as to

quantity, quality, and workmansh

 2.4:Objective of the Bank:

To conduct interest-free banking.

To establish participatory banking instead of banking on debtor-creditor relationship.

To invest through different modes permitted under Islamic Shariah.

To accept deposits on profit-loss sharing basis.

To establish a welfare-oriented banking system.

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

economic development.

To play a vital role in human development and employment generation.

To contribute towards balanced growth and development of the country through

investment operations particularly in the less developed areas.

To contribute in achieving the ultimate goal of Islamic economic system.

2.5:Problem Specific to Islamic Banking in Bangladesh

1. Absence of Islamic Money Market

In the absence of Islamic money market in Bangladesh, the Islamic banks cannot invest their

surplus fund i.e., temporary excess liquidity to earn any income rather than keeping it idle.

Because all the Government Treasury Bills, approved securities and Bangladesh Bank Bills in

Bangladesh are interest bearing. Naturally, the Islamic banks cannot invest the permissible part

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of their Security Liquidity Reserve and liquid surplus in those securities. As a result, they deposit

their whole reserve in cash with Bangladesh Bank. Similarly, the liquid surplus also remains

uninvested. On the contrary, the conventional banks of the country do not suffer from this sort of

limitations. As such, the profitability of the Islamic banks in Bangladesh is adversely

affected.           

2. Absence of Suitable Long-term Asset s

The absence of suitable long term assets available to Islamic banks is mirrored by lack of short

term tradable financial instruments. At present there is no equivalent of an inter-bank market in

Bangladesh where banks could place, say, over night funds, or where they could borrow to

satisfy temporary liquidity needs. Trading of financial instruments is also difficult to arrange

when rates of return are not know until maturity. Furthermore, it is not clear whether Islamic

banks in Bangladesh can utilise more exotic instruments, such as derivatives, that are becoming

increasingly popular with conventional banks. Obviously, these factors place Islamic banking in

Bangladesh at a distinct disadvantage compared to its conventional banking counterpart.

3. Shortage of Supportive and Link Institutions

Any system, however well integrated it may be, cannot thrive exclusively on its built-in

elements. It has to depend on a number of link institutions and so is the case with Islamic

banking. For identifying suitable projects, Islamic banking can profitably draw the services of

economists, lawyers, insurance companies, management consultants, auditors and so on. They

also need research and training forums in order to prompting entrepreneurship amongst their

clients. Such support services properly oriented towards Islamic banking are yet to be developed

in Bangladesh.

4. Organizing Relationship with Foreign Banks

Another important issue facing Islamic banks in Bangladesh is how to organise their

relationships with foreign banks, and more generally, how to conduct international operations.

This is, of course, an issue closely related to the creation of financial instruments, which would

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be simultaneously consistent with Islamic principles and acceptable to interest-based banks,

including foreign banks.

5. Long-term Financing

Islamic Banks stick very closely to the pricing policies of the government. They can not benefit

from hidden costs and inputs, which elevate the level of prices by certain entrepreneurs without

any justification. On the other hand, Islamic banks as financial institutions are even more directly

affected by the failure of the projects they finance. This is because the built in security for getting

back their funds, together with their profits, is in the success of the project. Islamically, it is not

lawful to obtain security from the partner against dishonesty or negligence, both of which are

very difficult if not impossible to prove.  

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CHAPTER 3:

Islamic Products & Services of IBBL

Islamic products:1.Deposit product

2.Investment products

3.Rural Development Scheme'

3.1:Deposit Products

Islami Bank Bangladesh Limited mobilizes deposits through different types of accounts.

 Al-Wadeah Accounts

 Mudaraba Accounts

Al-Wadeah AccountsIslami Bank Bangladesh Limited operates Al-wadeah Current Account on the principles of Al-wadeah.

The Bank commits to refund money deposited in these Accounts on the demand of customers. On the

other hand the Bank takes permission from customers that the Bank may utilize their money. Customers

may operate these Accounts as their desires. No profit is disbursed in these Accounts and depositors do

not bear any loss

Mudaraba AccountsIn the perspective of these Accounts the Bank is 'Mudarib' and customers are 'Shahib Al-Mal'. On behalf

of depositors, the Bank invests their deposited money and distributes minimum 65% of investment-

income earned through deployment of Mudaraba funds among Mudaraba depositors after the closing of

the year.

3.2:Investment products

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The special feature of the Investment Policy of the Bank is to invest on the basis of profit-loss

sharing system in accordance with the tenets and principles of Islamic Shari'ah. Earning of profit

is not the only motive and objective of the Bank's Investment Policy rather emphasis is given in

attaining social goal and objective in creating employment opportunities.

Following modes are used for investment:

BAI-MODES

Baimurababa

BaiIstijrar

Bai-Muajjal

Bai Salam

Istisna’a

Bai-As-Sarf

SHARE-MODES

Mudaraba

Musharaka

IJARA-MODES

Hire Purchase Under ShirkatulMel

Under consumer financing, the Bank finances to the individuals for meeting their personal.

family and household needs. The Bank has taken up various welfare oriented investment

Schemes

3.3:Rural Development Scheme' has been introduced in 1995 to cater to the investment

needs of the agriculture and rural sector to create opportunity for generation of employment and

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raising income of the rural people with a view to alleviate poverty. It is treated as first Islamic

Microfinance Model in the Country & abroad.

Objectives:

1.To extend investment facilities to agricultural, other farming and off-farming activities in the

rural areas

2. To finance self-employment and income generating activities of the rural people, particularly

the rural unemployed youths and the rural poor

3. To alleviate rural poverty through integrated rural development approach.

4. To extend investment facilities for hand tube-wells and rural housing, keeping in view the

needs of safe drinking water and housing facilities of the rural dwellers

5. To provide education and Medicare facilities to the down-trodden people.

Islamic Services:1.NRB(Non Resident Bangladeshi) Entrepreneurs Services.

2.SME Information.

3.Foreign exchange service.

4.Locker Service.

5.Offshore Banking Units (OBU).

3.4:(1).NRB(Non Resident Bangladeshi) Entrepreneurs Services

Features

1,Remitance Card

2.Investment Scheme for Foreign Expatriate

3.Mudaraba NRB Saving Bond

3.5:(2)Sme Information

Islami Bank Bangladesh Limited has been working since 1983 in the view to establish a welfare

oriented Islami Banking system and also to ensure equity and justice in the field of all economic

activities, achieve balanced growth and equitable development through diversified investment

operations particularly in the priority sectors and less developed areas of the country and to

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encourage socio-economic uplift and financial services to the low income community,

particularly in the rural areas. Since inception of the Bank, it has been giving priority in

financing SMEs.

Formation of SME Division

The Board in its emergent meeting held on 02.11.2005 approved a memo bearing No. 2005/155

with the following resolution:

“Resolved that the investment in Small Enterprise shall be made in accordance with the terms

and conditions contained in the Annexed “Comprehensive Small Enterprise Investment Policy”

and SME Division under Investment Wing shall be established with necessary restructuring and

duly manning with adequate officials as proposed.”

In order to emphasize SME investment, to run its SME functions smoothly and to strengthen the

SME activities of the bank, it has created a separate Division namely “Small and Medium

Enterprise Division” in 2009.

Specialized SME Branches

As per guideline and regulation of Bangladesh Bank, the Board of Directors of the Bank has

selected a good number of SME prone areas, where Specialized SME/Agriculture Branches are

being opening in order to facilitate the potential entrepreneurs in accessing to the finance from

Sharia’h based banking sector. So far nos. of such Specialized SME Branches have been opened

and more such Branches shall be opened at the SME prone areas by orde

3.6:(3).Foreign exchange service:

Islami Bank Bangladesh Limited has introduced a new deposit product titled 'Mudaraba Foreign

Currency Deposit Scheme (Savings)' under Mudaraba principle and endeavouring to invest the

foreign currency funds in profitable way through its Foreign Correspondent Banks under Shariah

Principle so as to enable the Bank to pay profit to its FC/PFC depositors, who will intend to

open/maintain Mudaraba Foreign Currency Deposit (MFCD) Account particularly in US Dollar.

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This Scheme offers investment opportunities to wage earners and other private Foreign Currency

Account holders who do not like to keep their funds in interest bearing deposit accounts or invest

in interest bearing schemes. To encourage savings in Foreign Currency by offering a safe and

profitable opportunity to the savers/investors by way of sharing a portion of the profit out of the

investment of their funds as per principles of Shariah and to extend the Banks Deposit Scheme

for mobilisation of remittance of Bangladeshi expatriates to increase the opportunity for their

income generation and increase in the wealth of individuals and of the nation through profitable

investment as per Shariah principles are the special features of the Scheme.

Objectives

To offer investment opportunity to the Wage Earners and other private Foreign Currency account

holders who do not like to keep their funds in interest bearing deposit accounts or invest in

interest bearing schemes.

To encourage savings in Foreign Currency by offering a safe and profitable opportunity to the

savers/investors by way of sharing a portion of the profit out of the investment of their funds as

per principles of Shariah.

To extend the Bank's Deposit Scheme for mobilization of remittance of Bangladeshi expatriates

to increase the opportunity for their income generation and increase in the wealth of individual

and of the nation through profitable investment as per Islamic Shariah Principles.

3.7:(4) Locker service:

Our safe deposit locker service offered from select branches gives you a completely secured

facility for safekeeping of precious items, confidential documents and other valuables.

Services

1.Personalised service

2.Facilities to access outside scheduled time

3. Parcel handling

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4. Safe custody of goods and bonds/shares

5. Lockers available in various sizes. i.e. Small, Medium and Large.

3.8(5)Offshore Banking Units (OBU).

Islami Bank Bangladesh Limited commenced operation of its Off-Shore Banking Units (OBU)

located at Head Office Complex Branch- Dhaka, Uttara Branch-Dhaka and Agrabad Branch,

Chittagong under the license issued by Bangladesh Bank. Details particulars of OBUs of IBBL

as unde

Deposit clients of OBU:

Islami Bank Bangladesh Limited commenced operation of its Off-Shore Banking Units (OBU)

located at Head Office Complex Branch- Dhaka, Uttara Branch-Dhaka and Agrabad Branch,

Chittagong under the license issued by Bangladesh Bank. Details particulars of OBUs of IBBL

as under:

Deposit products :

01

.

Al-Wadiah Current A/C

02

.

Import Finance/facility

Local banks may also maintain foreign currency accounts with OBUs in the manner they

maintain such accounts with their foreign correspondents.

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Area of Investment of OBU:

OBU can finance mainly to Fully Foreign Owned Companies at home and abroad, A-Type

Farms/Companies in EPZ territory and in limited cases to Joint Venture/Local Industrial unit in

Bangladesh in the form of term investment provided permission from Board of Investment

(BOI). Investment Products

01.Bill Financing (Mudaraba Documentary Bill (UPAS)

02.Import Finance/facility

03.Export Finance/facility.

04.Short Term Murabaha.

05.Project Finance.

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04:Conclusion:

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

given detail regulations for our economic life. Therefore, Islami Bank Bangladesh Limited

(IBBL) is trying to establish the maximum welfare of the society by maintaining the principles of

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

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

depositors. 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.

Profit earning is not the only motive and objective of the bank’s investment policy rather

emphasis is given in attaining social good and in creation employment opportunities.

IBBL is not secular in its orientation. IBBL does not finance any project which conflicts with the

moral value system of Islam. IBBL does not strictly consider the credit worthiness of the

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

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