Annual Report 2014 · 2019-11-23 · Subject: Annual Report 2014 of Social Islami Bank Limited. Muhtaram As-salamu Alikum Wa Rahmatullah Reference to the above, we enclose herewith

Annual Report 2014

Annual Report 2014

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Contents

Standard Disclosure Checklist 7

Letter of transmittal 11

Our Vision 12

Our Mission 12

Strategic Objectives and commitments 13

SIBL Core Values 14

Code of Conducts and ethical principles 15

Corporate pro� le 17

Milestones 18

Founder of the Bank 19

Sponsors of SIBL 21

Board and Committees 22

(i) Board of Directors 23

(ii) Directors’ Pro� le 25

(iii) Executive Committee 30

(iv) Audit Committee 30

(v) Risk Management Committee 30

(vi) Shariah Supervisory Committee 31

Management & Committees 32

(i) Management Team 33

(ii) Core Decision Making Committee 34

(iii) Asset Liability Committee 34

(iv) Tender Evaluation Committee 35

(v) MRS (Management Reporting System) Committee 35

(vi) Investment Committee 35

(Vii) MANCOM 36

(Viii) SIBL Integrity Committee 36

Functions of Social Islami Bank Limited 37

Corporate Structure 38

Products and Services 40

Media Accolade 42

Shareholders’ Information 43

(i) Capital Pattern of SIBL 44

(ii) Pattern of Shareholding 44

(iii) Pattern of Shareholder by holding in 2014 45

(iv) Shares held by the Directors in 2014 45

(v) Financial Calendar 46

Analysis & Value Added Statements 47

(i) Performance of the Bank 48

(ii) SIBL at a Glance 49

(iii) Graphical Presentation of SIBL 50

(iv) Report & Statements of Value addition and its distributions 52

(v) Economic Value Added (EVA) Statement 54

(vi) Market Value Added (MVA) Statement 55

Chairman’s Foreword 56

From the Desk of the Managing Director 61

Management Report & Analysis 63

Report on Internal Control System 75

Report of the Board of Directors 76

Corporate Governance Compliance Report 137

Report on National Integrity Strategy 143

Report on Going Concern 144

Audit Committee Report 147

Report on Risk Management 149

Market Disclosure under Pillar-Ill of BASEL-II 151

SIBL Events & Highlights 162

Report of the Shariah Supervisory Committee 183

Financial statements to the Shareholders for the year ended 31st December 2014 184

SIBL Network 298

Notice of the 20th Annual General Meeting 306

Form of Proxy 307

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Verses from the Holy Quran and HadithIn the Name of Allah, Most Gracious, Most Merciful

“..... That is because they say Trade is just like usury whereas,Allah permitteth trading and forbideth usury.....”-Surah Al-Baquarah,verse : 275

“…..Allah will destroy Riba (usuary) and will give increase for Sadaqaat and Allah likes not the disbelievers, sinners…..”-Surah Al-Baquarah,verse : 276

“..... O you who believe! Be afraid of Allah and give up what remains from Riba, if you are really believers…..”-Surah Al-Baquarah,verse : 278

“..... If you do not do it, then take a notice of war from Allah and his messenger; but if repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums).....”-Surah Al-Baquarah,verse : 278

“..... Verily never will Allah change the condition of a people until theychange it themselves (with their own souls).....”-Surah Ar-ra’ad, verse : 11

“A man’s work ends upon his death except for three things (a) contribution to knowledge (b) on-going charity and (c) faithful child”- Al Hadith Muslim

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Standard Disclosure Checklist to the key sections of the Annual Report 2014

Items Ref. Page No

Corporate Objectives, Values & Structure

Clarity and Presentation

Vision and Mission 12

Overall Strategic Objectives 13

Core Values and Code of conduct / ethical principles 14-16, 125-136

Pro�le of the Company 17

Director’s pro�le and their representation on Board of other companies & organization chart 25-29, 38-39, 257-258

Management Report / Commentary and analysis including Director’s Report/Chairman’sReview/CEO’s Review etc.

A general review of the performance of the company 48, 63-74

Description of the performance of the various activities / products / segments of the company 85-102, 105-108, 112-117and its group companies during the period under review

A brief summary of the Business and other risks facing the organization and 103-105, 149-161, 207-209steps taken to effectively manage such risks

A general review of the future prospects / outlook 74

Social Responsibility initiatives (CSR) 114-117

Environment related initiatives 95-98

Information on how the company contributed to its responsibilities 110-111towards the staff (including health and safety)

Information on Company’s contribution to the national exchequer & to the economy 52-55, 102

Appropriateness of Disclosure of Accounting policies and General Disclosure

Disclosure of adequate and properly worded accounting policies relevant to assets, liabilities, 199-209, 270-271income and expenditure in line with best reporting standards 279-280, 295-296

Any speci�c accounting policies 206 (BAS-19)

Impairment of assets 205

Changes in accounting policies/changes in accounting estimates 203-204, 225 (BAS-38)

Segment Information

Comprehensive segment related information bifurcating Segment

Availability of Information regarding different segments and units of the entity as well as non-segmental entities/units

Segment analysis of

Segment Revenue 101-102

Segment Results

Turnover

Operating Pro�t

Carrying amount of Net Segmental Assets

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Items Ref. Page No

Financial Statements

Disclosures of all contingencies and commitments 189, 194

Comprehensive related party disclosures 107, 257-259

Disclosures of remuneration & facilities provided to Directors & CEO 119, 123, 250

Statement of Financial Position / Balance Sheet and relevant schedules 188, 193, 210-245

Income Statement/Pro�t & loss Account and relevant schedules 190, 195, 245-253

Statement of Changes in Equity/Reserves & Surplus schedule 192, 197

Disclosures of types of Share Capital 232-234

Statement of Cash Flow 191, 196

Consolidated Financial Statement (CFS) 186-297

Extent of compliance with the core IAS/IFRS or equivalent National standards 199-209

Disclosures/Contents of Notes to Accounts 199-297

Information about Corporate Governance

Board of Directors, Chairman and CEO 119-130

Audit Committee (composition, role, meetings, attendance, etc.)Internal Control & Risk Management 30, 130, 147-148

Ethics and Compliance 125-126

Remuneration and other Committees of Board 30, 130-131

Human Capital 108-111

Communication to Shareholders & stakeholders:

Information available on website 136

Other information 44-46

Environmental & Social Obligations 95-98, 112-117

Management Review and Responsibility 63-74

Disclosure by Board of Directors or Audit Committee on evaluation of quarterly reports 147-148

Any other investor friendly information 18, 49, 63-74

Stakeholders Information

Distribution of shareholding (Number of shares as well as category wise, e.g. Promoter group, FII etc.) 44-45

Shares held by Directors /Executives and relatives of Directors / Executives 45, 120

Redresser of investor complaints 136

Graphical /Pictorial Data

Earnings per Share

Net Assets

Stock Performance 50-51

Shareholders’ Funds (Shareholder’s Equity/Net Assets)

Return on Shareholders Fund (Return on Equity) 67

184-

297

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Items Ref. Page No

Horizontal/Vertical Analysis including the following

Operating Performance (Income Statement)

Total Revenue

Operating Pro�t

Pro�t before Tax 49, 50, 71, 118

Pro�t after Tax

EPS

Statement of Financial Position (Balance sheet)

Shareholders Fund 188, 193, 275, 291

Property, Plant & Equipment 224, 225, 260, 261, 281, 288

Net Current assets 50

Long Term Liabilities/Current Liabilities (Liabities over 01 Year/Liabilities upto 01 Year) 188, 193, 198

Pro�tability / Dividends/Performance and Liquidity Ratios

Gross Pro�t Ratio 67

Earnings before Pro�t, Depreciation & Tax 67

Price Earning ratio (PE Ratio) 68

Current Ratios 67

Return of Capital Employed (Return on Equity) 67

Debt Equity Ratio 67

Statement of Value Added and its Distribution

Government as Taxes 53

Shareholders as Dividend 53

Employees as bonus / remuneration 53

Retrained by the entity 53

Market share information of Company’s product/services 55

Economic value added 54

Additional Disclosures

(i) Information/Disclosure on Sustainability (Environmental, CSR activities) 95-98, 115-117

(ii) Human Resource Accounting 110

(iii) Report on Internal Control System 75

(iv) Report on National Integrity Strategy 143

(v) Report on Going Concern 144-146

(vi) Report on Risk Management 149-150

(vii) Shariah Supervisory Committee Report 183

Speci�c Areas for Banking Sector

Disclosure of Ratings given by various rating agencies for Instruments issued 89by/of Bank for e.g. FD.CD. Tier-1 Perpetual Bonds

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Items Ref. Page No

Details of advances (investment) portfolio classi�cation wise as per the direction issued 222-224by the central bank of the respective countries Disclosure for non-performing investments 157,230

Maturity pattern of key Assets and Liabilities (ALM) 198, 218, 228

Classi�cation and valuation of investments as per regulatory guidelines /Accounting Standards 153-155, 211-224

Business Ratio / Information

Statutory Liquidity Reserve (Ratio) 211

Net interest income as a percentage of working funds/operating cost –ef�ciency ratio 72

Return on Average asset 72, 272

Cost/Income ratio 68, 72

Net Asset Value per Share 50

Pro�t per Employee (Operating pro�t per employee) 110

Capital Adequacy Ratio 85-86, 235, 272

Operating pro�t as a percentage of working funds 50

Cash Reserve Ratio /Liquid Asset Ratio 72, 210-211

Dividend Cover Ratio 67

Gross Non-Performing assets to gross advance / Non –Performing Investments (Asset) to Total

Investments (Assets) (Percentage of classi�ed Investment) 157, 272

Details of credit concentration /sector wise exposures 156, 221

The break-up of ‘Provisions and contingencies’ included in the Pro�t and Loss account 222-223, 230

Disclosure under regulatory guidelines 137-142, 151-161

Details of Non Statutory investment portfolio 215-218

Disclosure in respect of assets given on operating & �nance lease 205

Disclosures for derivative investments 201

Bank’s Network List of Centers or Branches 298-305

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Letter of transmittal

All Shareholders of SIBL

Registrar of Joint Stock Companies & Firms

Bangladesh Bank

Bangladesh Securities & Exchange Commission

Dhaka Stock Exchange Ltd.

Chittagong Stock Exchange Ltd.

Subject: Annual Report 2014 of Social Islami Bank Limited.

Muhtaram

As-salamu Alikum Wa Rahmatullah

Reference to the above, we enclose herewith the copy of Annual Report 2014 of Social Islami Bank Limited along

with audited consolidated and solo Financial Statements as at 31st December 2014. This report includes Income

Statements, Balance Sheet, Cash Flow Statements, Liquidity Statements, Statements of Changes in Equity and

Notes to the Accounts thereon of Social Islami Bank Limited as well as its subsidiaries namely SIBL Securities

Limited and SIBL Investment Limited.

This is for your kind information and record, please.

Md. Humayun Kabir, ACS

Company Secretary

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Our Commitmentsto the Shariah

to the Regulators

to the Shareholders

to the Nation

to the Customers

to the Employees

to the other Stakeholders

to the Environment.

Our Strategic Objectives

Transformation into a service-oriented technology-driven pro� t earning bank.

Ensure fast, accurate and best-in-class customer services with customers’ satisfaction.

Balanced and sustainable growth strategy.

Optimum return on shareholders’ equity.

Introducing innovative Islamic Banking Products.

Attract, motivate and retain high quality human resources.

Empowering real poor families and create local income opportunities.

Providing support for social bene� t organizations-by way of mobilizing funds and social services

To achieve global standards in Islamic Banking

To invest in the priority sector for the overall economic development

Ensure best CSR (Corporate Social Responsibilities) practices

Ensure Green Banking

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SIBL Core Values

Towards the Journey of Excellence, SIBL has changed its brand logo. The new logo depicts bird’s wings with 9 feathers to represent its core values- comfortable

and safe � ying in the economic sky of the country connecting it with the global sky by passing the territorial boundary.

Flexibility

service � exibility is one of the

most important features

Honesty

honest to its customers, employees, regulators,

shareholders and others.

Accountability

accountable to the stakeholders

and to the society

at large.

Innovation

continuous innovative idea generation and

designing of banking products

and services.

Religiousness

SIBL enhances economic well being with the

bliss of religious ethics

Security

protecting assets and

services

Technology

providing upgraded

technological banking services.

Ef� ciency

gaining ef� ciency through best

use of man and machine.

Transparency

transparent in each and

every banking transaction.

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Code of Conduct & Ethical Principles

• Objectivity-the bank shall possess strict principle of objectivity in its day to day banking operations in relation to its customers, employees, shareholders, other banks, other organizations by maintaining and protecting the stability and trust in the banking sector.

• Just and equitable-the bank shall have no discrimination and avoid all forms of bias in its attitudes towards employees as well as to its customers.

• Honesty-the bank during its operations shall stick to the honesty principle in relation to customers, employees, shareholders, other banks, regulators and the stakeholders.

• Impartiality-the bank is impartial towards it’s customers irrespective of their nationality, religion, �nancial and social standing, and gender during banking service.

• Reliability-the bank shall offer clear, comprehensible and correct information to its customers within the principle of reciprocal trust during services and transactions; and provide the customer services in a timely and complete manner.

• Transparency-the bank shall inform it’s customers in an open, easily understandable and clear way regarding the underlying rights and responsibilities, bene�ts and risks attached to the products and services offered to them.

• Observing Social Bene�t and Respect to Environment-the bank shall show due diligence to support all kinds of social and cultural activities in the light of the principle of observing, aside from the pro�tability, the social bene�t and respect to the environment.

• Fighting with money laundering -the bank has a policy to �ght against corruption and money laundering etc. as a signi�cant principle as stipulated by international norms and the provisions of national laws and regulations. The bank shall take appropriate measures to discharges duties by the employees with utmost

due care and caution to �ght the laundering of crime originated assets.

• Insider trading-the bank has a clear policy and takes all measures in order to prevent the use of insider information for the trading purposes.

• Relations with public organizations, regulators and other institutions – the bank, during its relations with the public organizations, regulators and other institutions, should act in observance of the principles of honesty, accountability and transparency, and should show the utmost care for the correct, complete and timely communication of the information, documents and records in accordance with the laws and regulations of the country.

• Personnel behaviors – the bank shall avoid all kinds of practices and applications that may cause unfair competition on the employment of the personnel.

• Competition –the bank shall take appropriate measures to take the challenges of industry competition in compliance with the laws and regulations. During the SIBL’s actions to defeat the competitive forces- all of its activities within the free market economy shall avoid any unfair means which may cause indiscipline in the economy or industry or may be termed as immoral or unjusti�ed behavior or is against the principles of integrity. All actions against competition shall rather aim to (i) overall development of the �nancial sectors (ii) develop public trust on overall banking operations (iii) observe the common interest of banks.

• Advertisements and Announcements- SIBL shall act honestly, realistically, and in compliance with legal regulations and with the general moral principles during its announcements, advertisements and notices under the publicity and advertising activities regarding products and services as well as its �nancial structures. The bank shall avoid all acts and behaviors that may damage the reputation of the banking as a profession. The bank shall also ensure that the announcements, advertisements and notices do not contain any

Ethical Principles of SIBL

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statements or expressions degrading or humiliating other banks, or the products and services of other banks.

• Customer complaints- SIBL shall establish a system in order to respond all and any kinds of questions of their customers stemming from the services offered and shall accordingly inform to customers about this system.

• Security- SIBL shall recognize the concept of “Security” that includes all measures towards the protection of all and any service mediums of the bank in banking sector including technical hazards in the services offered to the customers.

• General employee qualities- the bank shall be aware that it shows due diligence in order to ensure that the employees of the bank possess knowledge, background and a sense of responsibility required by jobs.

• Employment and career development- the bank shall in line with the principle of managing the human resources in the best possible way, offer trainings, courses, seminars and similar opportunities to their employees in order to ensure that they reach to the level necessitated by the time and by the banking profession.

• Working environment-The bank shall introduce internal regulations requiring that its employees look neat and clean in conformance with the reputation of the banking profession and are also provided with a good congenial working environment.

• Job descriptions– The bank shall maintain and update a detailed job description to distribute its jobs among the employees so that the bank can show due diligence for the employment of suf�cient number of personnel required by the workload, organize their employees in a way that they yield maximum productivity during the working hours, and show utmost efforts for preventing overtime work and for their employees use their annual leaves regularly.

Code of Conduct for theEmployees

• Adhere to the Shariah Principles.

• Adhere to the disciplinary measures of the bank.

• Adhere to applicable laws and regulations during performance of duties,

• To inform the customers about the bene�ts and risks of the products and services offered to them,

• To offer unbiased and fair service to the customers receiving the same services,

• Not to disclose the secrets of their customers and the banks which they come to learn by virtue of their positions and titles to anyone other than those persons and authorities who are explicitly authorized under laws,

• Not to cause any loss of reputation of the bank during works and attitudes,

• Not to be engaged in any activity that can be classi�ed as personal business.

• Not to behave in contradiction to the principles of justice, integrity, honesty, reliability and social responsibility,

• To cooperate with other employees for common purposes through building a courteous and diligent communication during their ful�llment of duties,

• Not to use the bank’s assets and resources unproductively and outside the designated purpose,

• Not to derive any personal bene�ts both from their own job potentials and from potentials of their customers by using their positions and titles,

• To refuse all such bene�t offers immediately and to inform such offers to the competent authorities and to their superiors,

• Not to be involved in relations with the customers such as borrowing-lending, being guarantor and opening common accounts with the customers which do not correspond with ethical principles,

• Not to accept presents from the current or potential customers, other than those presents accepted by the bank personnel under the established practices in the bank,

• To be aware of his accountability regarding the duties assumed during the performance of the services,

• Not to assume any position in any private and public organization other than associations, foundations, cooperatives, and similar organizations without the approval of his bank.

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Corporate Pro�le

Social Islami Bank Limited (SIBL) was established in the year 1995 as a public limited company which is engaged in Shariah based commercial banking in the country and its modus-operandi are substantially different from other conventional banks. This is the second-generation pioneer Islamic Bank in this country providing online banking facilities to its customers.

Name of the Company : Social Islami Bank Limited

Legal Form : Public Limited Company

Company Registration No : C-28763(44)/95

Authorized Capital : Taka 10,000,000,000

Paid up Capital : Taka 703,14,15,640

Registered Of�ce : City Center, Level 19, 20, 21 & 22, 90/1 Motijheel C/A, Dhaka-1000 Phone PABX 88 02 09612001122 FAX 88 02 9568098 Email [email protected] Web www.siblbd.com SWIFT SOIVBDDH

Tax Payer Identi�cation No : 035-200-4971

VAT Registration No : 9011046380 Area Code 90101

Credit Rating Agency : Emerging Credit Rating Ltd.

Auditors : M/S Kazi Zahir Khan & Co.

Chartered Accountants, 67/4, Pioneer Road,Kakrail, Dhaka-1000 Chairman : Major Dr. Md. Rezaul Hoque (Retd)

Managing Director : Md. Sha�qur Rahman

Company Secretary : Md. Humayun Kabir, ACS

Chief Risk Of�cer : Md. Yunus Ali

Chief Financial Of�cer : Walid Mahmud Sobhani, FCMA

Number of Employees : 1922

Number of Branches : 100 (one hundred)

Number of Shares : 70,31,41,564

Investors’ Enquiry : Share Division City Center, Level-19,90/1 Motijheel C/A, Dhaka-1000 Phone PABX 88 02 09612001122

SIBL Securities Limited : Chief Executive Of�cer(a subsidiary of SIBL) 3rd �oor, 15 Dilkusha C/A ,Dhaka-1000

SIBL Investment Limited : Managing Director(a subsidiary of SIBL) 7th �oor, 68 Dilkusha C/A ,Dhaka-1000For Offshore Banking Off Shore Banking Department 48 Kamal Attaturk Avenues,Banani, Dhaka-1213 Phone PABX 88 02 09612001122

Listing Status (Shares) : DSE (Dhaka Stock Exchange Ltd.) Symbol SIBL, Listing Date 18.11.2000

CSE (Chittagong Stock Exchange Ltd.) Symbol SIBL, Listing Date 04.10.2005

Market Price as on 31.12.2014 DSE Taka 13.60 Category A, CSE Taka 13.60 Category A

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Milestones

Incorporation Date 05.07. 1995

Certi�cate of Commencement of Business 05.07.1995

Formal Inauguration 22.11.1995

Starting of 1st Branch 22.11.1995

Initial Public Offering (IPO) 26.06.2000

Listing with Dhaka Stock Exchange Ltd. 18.11.2000

Listing with Chittagong Stock Exchange Ltd. 04.10.2005

1st Right Share 23.07.2007

2nd Right Share 23.03.2009

3rd Right Share 26.05.2011

Opening of 50th Branch 22.08.2010

Online Banking Facilities Introduced 03.01.2004

Formation of Subsidiary Companies

a) SIBL Securities Ltd 20.07. 2010

b) SIBL Investment Ltd. 30.08.2010

Introducing Core Banking Software 01.05.2010

Own Corporate Head Of�ce at City Centre 01.01.2012

Opening of 75th branch (Bashundhara) 27.12.2011

Agreement with VISA 19.08.2010

Launching of Offshore Banking Unit 02.05.2012

Launching of Internet Banking 12.01.2012

Launching of Remittance Service 18.05.2008

Introducing Green Banking Window 24.12.2011

Introducing Concurrent Audit System 20.01.2011

6,25,000 nos. of Deposit Accounts 30.12.2014

49,000 nos. of Investment Accounts 30.12.2014

Opening of 100th Branch (Kankirhat) 28.12.2014

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Founder of the Bank

The Architect of ‘Three Sector Specialized Banking Model’Prof. Dr. M.A. Mannan M.A Econ (Michigan), Ph. D. Econ. (Mich. U.S.A)

Former Chief Economist, Islamic Development Bank, (IDB), JeddahFormer Professor of Economics and Islamic Finance, King Abdul Aziz University, Jeddah, Saudi Arabia.

Founder Chairman of Social Islami Bank Limited.

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Foreign Sponsors

H. E. Dr. Hamid Al-GabidEx Secretary General,O.I.C. Jeddah

Former Prime Minister & Finance Minister, Niger.

H. E. AmbassadorNasser Bin Abdullah Hamdan

Al-ZaabiChairman, ISF, OIC, UAE

H. E. Ahmed M. Salah JamjoomFormer Commerce MinisterKingdom of Saudi Arabia

Dr. Bedri Camel RodopluTurkey

H. E. Dr. Abdullah Omar NasseefDeputy Speaker of Consultative Council,

Saudi Arabia, Ex-Secretary General, World Muslim League, and

Ex-President, King Abdul Aziz University, Jeddah, K. S. A

Dr. Adalet DjabievRussia

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Sponsors of SIBL

Foreign Sponsors

1 H. E. Dr. Hamid Al-Gabid, ExSecretary General,O.I.C. Jeddah,Former Prime Minister & Finance Minister, Niamey, Niger.

2 H. E. Dr. Abdullah Omar Nasseef, Deputy Speaker of Consultative Council, Saudi Arabia, Ex-Secretary General, World Muslim League, and Ex-President, King Abdul Aziz University, Jeddah, K. S. A

3 H. E. Ahmed M. Salah Jamjoom, Former Commerce Minister, Kingdom of Saudi Arabia.

4 Islamic Solidarity Fund and its Waqf, O. I.C.

5 Dr. Bedri Camel Rodoplu

6 Dr. Abdel Fattah M. Farah

7 Dr. Adalet Djabiev

8 Dr. Youssef Shaheed Youseef

Local Sponsors

1 Prof. Dr. M. A. Mannan, MA (Econ) (Michigan), Ph.D. Michigan) (USA) Certi�cate in Economic Dev (USA).

2 Major Dr. Md. Rezaul Haque (Retd)

3 Dr. Md. Jahangir Hossain

4 Late Mohammad Ibrahim Miyan

5 Late Md. Abdul Malek

6 FOUNTAIN (Pvt.)Ltd.

7 Bangladesh Social Peace Foundation

8 Dr. J. H. Gazi.

9 Mr. M. Nurul Amin

10 Mr. Md. Shah Alam

11 Alhaj Sultan Mahmood Chowdhury

12 Alhaj Mohammad Nesaruddin.

13 Mr. Abdul Awal Patwary

14 Mr. Md. Anisul Hoque, Representing Hamdard Laboratories (Waqf) Bangladesh

15 Mrs. Nargis Mannan, B.A.(Hons), M.A.(DU)

16 Mrs. Fatema Begum

17 Mrs. Shamsun Nahar Begum

18 Mrs. Zohra Alam

19 Islam Import & Export Associate Ltd.

20 Al-Haj Nasiruddin

21 Mr. Kamal Uddin Ahmed

22 Mr. Ahmed Akbar Sobhan

23 Mrs. Hasina Iqbal

24 Al-Haj Sk. Mohammad Rabban Ali

25 Alhaj Mohammad Aynul Haque

26 Mr. Mohammad Azam

27 Mr. Md. Aminuddin

28 Dr. Reshmi Mannan Siddique, B.Sc. (Econ.), (LSE),U. KM.Sc. (Oxon.), M.S. (NY), Ph.D. (Ohio) (U.S.A.)

29 Dr. Ghalib Mannan, M.B.B.Ch. (Wales) (U.K.),.M.D.(U.S.A.)

30 Mr. Sadat Sobhan

31 Alhaj S.N. Haque

• Board of Directors

• Directors’ Profi le

• Executive Committee

• Audit Committee

• Risk Management Committee

• Shariah Supervisory Committee

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Board & Committees

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Board of Directors

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Board of Directors

Major Dr. Md. Rezaul Haque (Retd) : Chairman

Mr. Md. Sayedur Rahman : Vice Chairman

Mr. Abdul Jabbar Mollah : Vice Chairman

Mr. Abdul Awal Patwary : Director

Mr. Md. Anisul Hoque : Director[Representative of Hamdard Laboratories (Waqf) Bangladesh]

Alhaj Nasiruddin : Director

Alhaj Sk. Mohammad Rabban Ali : Director

Mr. Md. Abdur Rahman : Independent Director

Mr. Abdul Mohit : Independent Director

Mr. Md. Abdur Razzaque : Director

Major Gen. Fazle Elahi Akbar (Retd.) : Independent Director

Mr. Mohammad Amin Uddin : Director

Mr. Md. Kamal Uddin : Director[Representative of Sifang Securities (Pvt.) Ltd]

Mr. Md. Sha�qur Rahman : Managing Director

Mr. Md. Humayun Kabir, ACS : Company Secretary

The board comprises of thirteen members, each having years of experiences in the industry. The board ensures

that the company achieves superior �nancial results and stewards its leadership position in the industry. Moreover

the board is engaged in major activities such as addressing major policy, regulatory and strategic issues and

providing proper guidelines, monitoring �nancial performance, monitoring operations of internal control, approval

of annual budget, major capital expenditure. Evaluation of �nancial performance, approval of audit report,

appointment and evaluation of Managing Director and Senior Management team are the key decisions where the

board of directors plays a good part to carry on a sound banking system. In addition, the board of directors is the

responsible body to make timely reporting to shareholders about the affairs and performance of the company.

During the year 2014, total 26 number of Board meetings were held.

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Directors’ Pro� le

Major Dr. Md. Rezaul Haque (Retd.)Chairman

Mr. Md. Sayedur Rahman Vice Chairman

Major Dr. Md. Rezaul Haque (Retd.) is a veteran Freedom Fighter of Bangladesh Liberation War-1971. He passed his M.B.B.S from Chittagong Medical College under Dhaka University and has more than 44 years professional experience in his medical career. He actively participated in the liberation war as Medical Of� cer under Sector Head Quarter No.-1, Harina Army Camp, Subroom, India. He also participated in Arab-Israel War-1973 at the Syrian Front as a young Captain of Bangladesh Army. He served different units of Bangladesh Army and Family Planning Directorate under MOH. After that he left for Kingdom of Saudi Arabia and served Ministry of Health of KSA for 22 years and voluntarily retired in the year 2001 as Director of Chest Hospital, Jeddah. In the business arena he is the 2nd Founder Director of Social Islami Bank Limited, Sponsor Director of United Hospital Limited and Director of SIBL Securities Limited. Currently he is the Chairman of Little House (Pvt.) Limited, Active Builders Limited, Probashi Forum Co-operative Limited and SIBL Investment Limited. He is a well known philanthropist and social worker and engaged himself in various social activities around the country including his home town. He has established Younus Foundation in the name of his late father at Begumgonj, Noakhali and has undertaken various social activities there also. Mr. Haque was listed in the International WHO’s WHO of professionals of the world in 1999 in recognition of his academic and civic achievements of life. Mr. Haque was elected Chairman of Social Islami Bank Limited for the 1st term in the year 2006-2007 and 2nd term in the year 2013-2014. He has been elected as the Chairman of the Board of Directors of the Bank on 12.01.2015 for the 3rd term.

Mr. Md. Sayedur Rahman is a Director of Social Islami Bank Limited and one of the renowned and successful industrialists and businessmen of high stature of the country. He is a prominent � gure in Garments industry. Currently he is the Managing Director of eminent M/S. Lodestar Garments Ltd. M/S. Mid-Asia Fashions Ltd. He has been representing Social Islami Bank Limited to Bangladesh Association of Banks (BAB) since long. He is also a philanthropist and engaged in various social activities in the country. He is also discharging his responsibilities as a member of Executive Committee (EC) and Risk Management Committee of the Bank.

Mr. Abdul Jabbar Mollah Vice Chairman

Mr. Abdul Jabbar Mollah is a well known businessman and has almost 29 years business experience in exporting frozen foods worldwide. He is a Commercially Important Person (CIP) of Bangladesh. Currently he is the Managing Director of M/S. Jahanabad Sea Foods Ltd., M/S. Jalalabad Frozen Foods Ltd. and M/S. Jabbar & Co. Ltd. Mr. Mollah gained National Export Award for the year 1997-1998, 2000-2001 & 2008-2009 for his valuable contribution to the national export. He is the Vice Chairman of the Board of Directors of the Bank and also discharging his responsibilities as a member of Executive Committee (EC) of the Bank.

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Alhaj Sk. Mohammad Rabban Ali Director

Alhaj Nasiruddin Director

Alhaj Nasiruddin is one of the Sponsor Directors of Social Islami Bank Limited since its inception. Mr. Nasiruddin is also a renowned businessman of Chittagong with 29 years experience and also associated with various social welfare activities. He was the Chairman of the Board of Directors of the Bank during the period from 15.04.2009 to 13.04.2010 & 01.06.2012 to 13.11.2012 respectively. Currently he is the Managing Director of J.A.N. Corporation Ltd. and also Proprietor of M/s. Nams Trade Corporation and M/s. Nasim Trading Co. He is also discharging his responsibilities as Director of SIBL Securities Ltd., Member of the Executive Committee (EC) and Chairman of the Risk Management Committee (RMC) of the Bank.

Alhaj Sk. Mohammad Rabban Ali is a Sponsor Director of Social Islami Bank Limited and one of the renowned and successful industrialists and businessmen in this country. He has been managing several projects for the last 30 years directly. Mr. Ali has widely traveled in several countries in connection with his business and participated in different trade fairs. Currently he is the Managing Director of M/S. Rabbani Trading Company Ltd., M/S. Shamlon Industries Ltd., M/S. Shama Poly Yarn Industries Ltd. and also proprietor of M/s. S.R. Impex Co. Currently, he is also discharging his responsibilities as the Chairman of the Executive Committee (EC) of the Bank and Director of SIBL Securities Ltd. (a subsidiary company of the Bank).

Mr. Abdul Awal Patwary Director

Mr. Abdul Awal Patwary is one of the Sponsor Directors of Social Islami Bank Limited since its inception. Mr. Patwary is also a renowned businessman of the country and has almost 35 years business experience as an industrialist. He is actively associated with various social welfare organizations. He was the Chairman of the Board of Directors of Social Islami Bank Limited from 27.09.2007 to 15.04.2009. Currently he is the Chairman of M/s. Patwary Cold Storage Ltd., M/s. Patwary Potato Flakes Ltd., M/s. Greentech Greenhouse Bangladesh Ltd. and Managing Director of Faysal Shopping Complex Ltd., Faysal Shipping Lines and also Proprietor of M/s. Faysal Traders. Mr. Abdul Awal Patwary is also the Chairman of SIBL Securities Ltd. (a subsidiary company of the Bank). He is also discharging his responsibilities as a member of Executive Committee (EC) and Risk Management Committee of the Bank.

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Mr. Abdul MohitIndependent Director

Mr. Md. Anisul HoqueDirector

Mr. Md. Abdur RahmanIndependent Director

Mr. Md. Anisul Hoque is a graduate in Accounting from Dhaka University and completed CA course from the country’s renowned Howladar Yunus & Co., Chartered Accountants, Dhaka. He is the representative Director of Hamdard Laboratories (Waqf) Bangladesh and has been working there as Finance Director for last 23 years. Mr. Hoque is representing Hamdard Laboratories (Waqf) Bangladesh, one of the Sponsor Directors of Social Islami Bank Limited since inception of the Bank. Being in the senior management position in Hamdard Laboratories (Waqf) Bangladesh, he has a wide range of expertise in Finance, Accounts and Banking. He was the Chairman of Board of Directors of the Bank from 11.12.2011 to 31.05.2012 and 14.11.2012 to 29.06.2013 respectively. He is also discharging his responsibilities as a Director of SIBL Securities Ltd., member of the Risk Management Committee and Co-Chairman of the Executive Committee (EC) of the Bank.

Mr. Md. Abdur Rahman has almost 29 years work experience in different organizations like State Bank of Pakistan (Karachi), Bangladesh Bank Head Of� ce and various multinational companies at Jeddah, Saudi Arabia. He has achieved the Degree of Bachelor of Arts (Economics) from the University of Karachi, Pakistan. He is also discharging his responsibilities as the Chairman of the Board Audit Committee (BAC) and Independent Director in SIBL Securities Ltd.

Mr. Abdul Mohit bears almost 40 years of Corporate Management Experience. He is a knowledgeable individual in all aspects of business area. He is holding the degree of Bachelor of Commerce. He also bears a vast business experience in diversi� ed � elds including Real Estate business. He was the Director of Star Corporation Ltd. He was also the Member of the Red Cross & Family Planning Council. He is also discharging his responsibilities as a member of Board Audit Committee (BAC) of the Bank.

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Mr. Mohammad Amin UddinDirector

Mr. Md. Abdur RazzaqueDirector

Major General Fazle Elahi Akbar (Retd), ndc, psc, MDS- Independent Director

Mr. Md. Abdur Razzaque is a business individual. He is holding the degree of Bachelor of Arts (B.A). He bears a vast experience of Corporate Management for more than a decade as Administrative Director and Business Expansion in the well reputed Malcom Gaskil Inspection Services, Worldwide Loss Adjusters and Marine Survey Consultants Ltd. Jeddah, KSA. He has been appointed as Director of the Bank from the General Public Shareholders on 31st May, 2014. He is also discharging his responsibilities as a member of Board Audit Committee (BAC) of the Bank.

Maj. Gen. Fazle Elahi Akbar (Retd.) has over 34 years of active military service and is one of the veteran security experts of the country. He is a graduate of Army Staff College, Camberly, UK and National Defense College, New Delhi, India and has a Masters degree in Defense Studies. During his long service in the military he held most of the coveted appointments that an of� cer would aspire for. His last assignment in active service was in the United Nations Mission in Sudan as Force Commander. Currently, he is a Member of the Panel of Experts of the Security Council’s Affairs Division and a roster member of Mediation Support Unit, Department of Political Affairs, UNNY.

Gen Akbar is discharging his responsibilities as Independent Director of the Bank since 31 May 2014 and is also a member of the Board Audit Committee of the Bank.

Mr. Mohammad Amin Uddin is a reputed business individual. He is a popular businessman in London. He is holding the degree of Bachelor of Arts (B.A). He is the proprietor of “Sylhet Cash & Carry” 8 Fordham Street, London E-1. He is one of the Sponsors of the Bank and was a member of the Board of Directors of the Bank. He has been re-appointed as Director of the Bank on 25th October, 2014. He is also a British National.

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Mr. Md. Kamal Uddin Director

Mr. Md. Humayun Kabir, ACSCompany Secretary

Mr. Md. Sha� qur RahmanManaging Director

Mr. M. Kamal Uddin is one of the renowned and successful industrialists and well experienced international businessmen of the country. He is holding the degree of Bachelor of Commerce (B.com). Currently he is the proprietor of CBM Consortium. He is the Chairman of Mercantile Insurance Company Ltd. He is also the Managing Director of Chittagong Builders & Machinery Ltd., Merchant Securities Limited and Sifang Securities Limited. He is also the Director of Human Resources Development Co. Ltd., Central Hospital (PVT) Ltd., ASM Chemical Industries Ltd. and Universal Health Services & Research Ltd. He is also a Veteran in Stock Market Business. He is a well known Social Organizer and a man of Islamic Personality. Mr. M. Kamal Uddin has widely traveled in several countries in connection with business and participated in different trade fairs.

Mr. Md. Humayun Kabir, ACS is the Company Secretary of Social Islami Bank Limited (SIBL). He is also discharging his duties and responsibilities as Chief Executive Of� cer (CEO) of SIBL Securities Limited (a subsidiary company of SIBL). He is a quali� ed Chartered Secretary from the “Institute of Chartered Secretaries of Bangladesh (ICSB)” and also holding the degree of LL.B. He bears a vast experience of 10 years working as the Head of Share Department of Social Islami Bank Limited (SIBL). He started his career in the Bank in the year 2000. He also bears the experience in the � eld of various Regulatory and Corporate affairs relating to the Bank and Capital Market as well.

Mr. Md. Sha� qur Rahman, a seasoned banker, has a professional banking career spanning over three decades. Mr. Rahman, a Postgraduate in Commerce of the University of Dhaka and a Diplomaed Associate of the Institute of Bankers, Bangladesh, started his career as Probationary Of� cer in the then Sonali Bank (presently Sonali Bank Limited) in 1977. He held various important positions in that Bank as Manager of different branches across the country including Manager of its Local Of� ce. He held the post of General Manager in Agrani Bank in 2003 and served the Bank as Manager of its Principal Branch. He also worked at Jamuna Bank Limited and South-East Bank Limited in senior management positions. He joined Social Islami Bank Ltd. (SIBL) in 2010 as Deputy Managing Director. Currently he has been holding the of� ce of the Managing Director of SIBL from 3rd January, 2013.

Having worked in various key positions in different banks during his long professional career, Mr. Md. Sha� qur Rahman has attained specializations in almost all the areas of banking viz. Investment, Foreign Exchange, Human Resource, Information Technology, Treasury, Branch Management, etc. A widely travelled person, Mr. Rahman visited the USA, the UK, Canada, Italy, Singapore, Hong Kong, Thailand and the UAE for enriching professional knowledge. He has also attended several training programmes, seminars and symposiums at home and abroad such as the SCB Strategic Management & Corporate Governance Programme (at the Haas School of Business, University of California, Berkeley, California, the USA), Conference of the World Islamic Economic Forum (at ExCel London, the UK), the Strategic Senior Leadership Programme (at Said Business School, University of Oxford, Oxford, the UK), etc.

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Executive Committee

Alhaj Sk. Mohammad Rabban Ali : Chairman

Mr. Md. Anisul Hoque [Representative of Hamdard : Co-ChairmanLaboratories (Waqf) Bangladesh]

Major Dr. Md. Rezaul Haque (Retd) : Member

Mr. Abdul Awal Patwary : Member

Alhaj Nasiruddin : Member

Mr. Md. Sayedur Rahman : Member

Mr. Abdul Jabbar Mollah : Member

SIBL has constituted seven members executive committee of the board as per Bangladesh Bank guidelines to ensure good corporate governance in the business. The executive committee of the board is responsible for developing policy and strategy for smooth operations of the business. Moreover, the committee is also responsible for business development of the bank to ensure maximization of shareholders’ wealth protecting other stakeholders’ interest too in the company. Alhaj Sk. Mohammad Rabban Ali is the Chairman of the present Executive Committee of the bank. He is a renowned industrialist and businessman having 30 years experience, associated with various religious, social and welfare activities. Currently he is holding leading position in different organizations. During the year 2014, total 13 nos. of Executive Meetings were held.

Audit Committee

Mr. Md. Abdur Rahman : Chairman

Mr. Md. Kamal Uddin : Co-Chairman

Mr. Abdul Mohit : Member

Mr. Md. Abdur Razzaque : Member

Major Gen. Fazle Elahi Akbar (Retd.) : Member

SIBL has formulated an audit committee that plays an effective role in devising an ef�cient and secured banking system. The Audit Committee has been formed comprising �ve members of the Board of Directors. As it is guided by corporate governance guidelines, the bank recruited the Chairman of the Audit Committee who possesses sound knowledge with banking experience of more than four decades. SIBL initiates internal audit of the branches and head of�ce divisions on a periodical basis. The internal audit is supervised under Internal Control & Compliance Division (ICCD) and a separate division named ‘Board Audit Cell (BAC)’ also conducts internal audit supervised by Board Audit Committee. This BAC directly reports to the Chairman of Board Audit Committee. The committee reviews the �nancial reporting process, the system of Internal Control, Management Information System, Management of Risks, the Bangladesh Bank and Internal Audit reports, Audit Process and Compliance with laws and regulations and banks own code of conduct. During the year 2014, total 9 (nine) nos. of Board Audit Committee Meetings were held.

Risk Management Committee

Alhaj Nasiruddin : Chairman

Mr. Md. Sayedur Rahman : Co-Chairman

Major Dr. Md. Rezaul Haque (Retd) : Member

Mr. Abdul Awal Patwary : Member

Mr. Md. Anisul Hoque : Member

Under the stipulated instructions of Bangladesh Bank, the bank has formed a separate Risk Management Committee (RMC) consisting of 5 (�ve) members of the Board of Directors. In view of the revised Risk Management Guidelines 2012 and BRPD Circular no 11, functions of the Risk Management Committee shall comprise an effort to ensure proper risk management in bank. The RMC reviews stress testing as per Bangladesh Bank guideline for examining the bank’s capacity of managing future shocks as well as deals with all potential risks that might occur in future. During the year 2014, total 4 (four) Risk Management Committee Meetings were held.

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Shariah Supervisory Committee

Principal Sayeed Kamaluddin Zafree Chairman

Prof. A.N.M. Ra�qur Rahman Vice Chairman

A.Q. M. Abdul Hakim Madani Member

Dr. Mohd. Ahsanullah Miah Member

Moulana Obaid Ullah Hamzah Member

Md. Anwar Hossain Mollah Member

Barister Foysal Ahmed Patwary Member

Prof. Md. Abu Taleb Member

Md. Sha�qur Rahman Member

Shah Uali Ullah Member Secretary

A view of Shariah Supervisory Committee Meeting

During the year 2014, total 5 (�ve) Shariah Supervisory Committee Meetings were held.

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Management & Committees• Management Team• Core Decision Making Committee (CDMC)• Asset Liability Committee• Tender Evaluation Committee• MRS (Management Reporting System) Committee• Investment Committee• MANCOM• SIBL Integrity Committee

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Management Team

Senior Executive Vice Presidents Executive Vice Presidents

Mr. Md. Sha� qul Islam Mr. Mohammad Iqbal

Mr. Mohd. Ghulam Sarwar Mr. Md. Azizul Hakim

Mr. Walid Mahmud Sobhani, FCMA Mr. Gazi Mohammad Hasan

Mr. Md. Akhtar Hussain Mr. Md. Habibur Rahman

Mr. Ziauddin Sawlet Ghani Mr. Md. Akbar Ali

Mr. Kazi Ahsan Khalil Mr. Mohammad Forkanullah

Mr. Nazmus Saadat

Mr. Zahurul Islam Khondker

Mr. Md. Abdul Hamid

Mr. Tabriz Shahjahan

Mr. Faruque Ahmed

Mr. Md. Azharul Islam

Mr. Kazi Obaidul Al-Faruk

Mr. Md. So� Ullah

Mr. Md. Khurshed Alam

Mr. Syed Ohidur Rahman

Mr. Mahbub Hossain

Mr. Muhammed Zubair Sadik

Mr. Mohammad Shoeb, FCA

Mrs. Shireen Akhterunnessa

Mr. M. Sayedur Rahman

Mr. Sultan Badsha

Mr. Sheikh Zahidul Islam, ACA

Senior Vice Presidents

Managing Director Additional Managing Director Mr. Md. Sha� qur Rahman Mr. Ihsanul Aziz

Deputy Managing Directors

Mr. A.M.M. Farhad

Mr. Md. Yunus Ali

Mr. Md. Tarik Morshed

The strategic management activities and overall business operations of SIBL are supervised and directed by the core management team of the bank. The core management team, as well as the whole bank, is led by the Managing Director Mr. Md. Sha� qur Rahman who has 36 years of extensive and immense experience in banking. The core management team of the bank also consists of three Deputy Managing Directors all of whom have vast experience in banking ranging from 25 to 34 years. The members of the team have also attended numerous training and development programs both at home and abroad which enabled them to build enormous knowledge base in banking. The top management team of the bank (Senior Vice President and above), including the core management team, consists of 34 quali� ed and experienced employees including Managing Director.

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Core Decision Making Committee

Mr. Md. Sha� qur Rahman, Managing Director Chairman

Mr. Ihsanul Aziz, Additional Managing Director Member

Mr. A.M.M Farhad, Deputy Managing Director Member

Mr. Md. Yunus Ali, Deputy Managing Director Member

For smooth and effective running of the Bank, major operational decisions are taken through CDMC (Core Decision Making Committee) meeting involving most senior Of� cials of the Bank. During the year under report, total 10 Nos. of CDMC meetings were held where 111 nos. of major issues were discussed and discharged.

Asset Liability Committee (ALCO)



Mr. AMM Farhad, Deputy Managing Director Member


Mr. Tarik Morshed, Deputy Managing Director Member

Mr. Md. Sha� qul Islam, Senior Executive Vice President Member

Mr. Walid Mahmud Sobhani, Senior Executive Vice President & CFO Member Secretary

Mr. Mohammad Iqbal, Executive Vice President Member

Mr. Gazi Md. Hasan, Executive Vice President Member

Mr. Zahurul Islam Khondker, Executive Vice President Member

Mr. Faruque Ahmed, Senior Vice President Member

Mr. Mohammad Shoeb FCA, Senior Vice President Member

Mr. Md. Sultan Badsha, Senior Vice President Member

Mr. Akmal Hossain, Vice President Member

Mr. Shawket -ul- Amin, Vice President Member

Mr. Ahsan Habib, Senior Asstt. Vice President Member

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Tender Evaluation Committee

Mr. A.M.M. Farhad, Deputy Managing Director Chairman

Mr. Walid Mahmud Sobhani, Sr. Executive Vice President Member

Mr. Md. Akhtar Hussain, Sr. Executive Vice President Member

Mr. Gazi Mohammad Hasan, Executive Vice President Member

Mr. Akbar Ali, Executive Vice President Member

Mr. Zahurul Islam Khondker, Executive Vice President Member Secretary

MRS (Management Reporting System) Committee

Mr. Md. Sha� qul Islam, Senior Executive Vice President Chairman

Mr. Sultan Badsha, Senior Vice President Member

Mr. Mohammad Shoeb FCA, Senior Vice President Member Secretary

Mr. Shawket-ul-Amin, Vice President Member

Mr. Wahiduz Zaman, Asstt. Vice President Member

Investment Committee

Mr. Ihsanul Aziz, Additional Managing Director Chairman


Mr. Mohd. Ghulam Sarwar, Sr. Executive Vice President Member



Mr. Gazi Mohammad Hasan, Executive Vice President Member Secretary

Asset Liability Committee (ALCO) is one of the most vital bodies for smooth and effective treasury operation and Investment planning. To support the Asset Liability Management (ALM) process, the bank has established this Asset Liability Committee (ALCO) headed by the Managing Director. The Bank’s Asset Liability Committee (ALCO) is entrusted with the responsibility of managing short-term and long-term liquidity and ensuring adequate liquidity at optimal funding cost. The other responsibilities of the Committee include Balance Sheet structuring and management, measuring Bank’s risk capital requirement and the capital cushion available to meet the risk and determination of lending and deposit rates & the pricing strategy. The assessment and control of liquidity is done through Liquidity Reports and Balance Sheet statements.

Now a days, treasury is one of the most risky and sensitive corner for a Financial Institution and major liquidity decisions are taken through ALCO meeting involving most of the Senior Of� cials of the Bank. During the year under report, total 12 Nos. of ALCO meetings were held where 44 major decisions were taken.

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MANCOM



Mr. A.M.M. Farhad, Deputy Managing Director Member


Mr. Md. Sha� qul Islam, Sr. Executive Vice President Member

Mr. Mohd. Ghulam Sarwar, Sr. Executive Vice President Member




Mr. Gazi Mohammad Hasan, Executive Vice President Member

Mr. Akbar Ali, Executive Vice President Member

Mr. Zahurul Islam Khondker, Executive Vice President Member Secretary

SIBL Integrity Committee

Mr. Ihsanul Aziz, Additional Managing Director Chairman



Mr. Mohammad Shoeb FCA, Senior Vice President Member Secretary

& Focal Point Of� cer

Mr. Md. Sultan Badsha, Senior Vice President Member

Mr. Zahurul Islam Khondker, Sr. Vice President Member

MS. Samia Islam, First Asstt. Vice President Member

Management committee is comprised of twelve senior members of the bank, headed by Managing Director; Mr. Md. Sha� qur Rahman who has more than 36 years of relevant experience with different banks and has been serving this bank since 2010. All of the members are from different departments. The members of the committee are highly experienced in the related � eld and possess great deal of versatility in the overall management practice. These professionals with modern banking expertise in their respective � elds handle the day-to-day operations of the bank. MANCOM meets on regular basis to discuss relevant agenda and scrutinizes all the cases thoroughly before referring to Executive Committee/Board for due approval decision. During the year 2014 a total 4 (four) nos. of meetings were held where 26 agendas were discussed.

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Function of Social Islami Bank Limited

Deposit procurement & management under Shariah

Principles

Financial Services i.e.

Letter of Guarantee, Money

Transfer etc.

Functions of Social

Islami BankLimited

CorporateSocial

Responsibilities (CSR)

Invesment using Islamic

Financial Contract

Board of Directors

Board Audit Committee

Executive Committee of the

Board of Directors Board

Secretariat

Board Audit Cell

Board Affairs Shares

SEVP/EVP (Chittagong Regional Office)

MD’s Secretariat

Administrative Unit

Vigilance & Inspection Unit

Shariah Supervisory Committee Secretariat

Member Secretary

Muraquib

Deputy Managing Director


SME & Agricultural Finance Division

Investment Risk Management

Division

Support Service

Software Development &

Maintenance

Security & Compliance

IT Division

BACH

Centralized Clearing Unit

International Division

Central Bank & Other Regulatory Approval

SWIFT Operation

Correspondent Banking

Remittance

Treasury Front Office

Foreign & Local Currency

Business Dealing

Exchange Rate Fixation & Profit Rate

Fixation

Foreign Remittance

Cell

Branding and Communication

Division

Branding

Communication

Card Division

Branches Control, General

Banking & Marketing

Division

Branches Control & General Banking

AML Unit

Monitoring Unit

CTR/STR

OBU

MIS/R&D

Alternative Delivery Channel

Centralized Remittance

Processing Unit

SIBL Training Institute

Logistic Support Division

Premises, Decoration & Dead Stock

Printing , Stationery & Stores

Transport & Maintenance

Security Services

Treasury Back Office

FC & Taka Dealing Reconciliation

Nostro A/c Management &

Reconciliation

Statement & Returns

Daily Statement of Treasury Operations

Vouchers & Profit/Loss Findings

(Treasury Mid Office) Foreign Currency Market Information Analysis & Strategy

MIS of Treasury Operations

Financial Administration

Division

Budget & Financial Control

Reconciliation

Central Accounts

ALCO Desk

B. Bank Returns

Basel-II Implementation

Cell

Trade Finance & RMG Division

Approval Monitoring

Centralized Trade

Processing Unit

RMG Department

Trade Finance Department

Approval Unit

Green Banking

Unit

MIS Reporting

Unit

Monitoring & Recovery

Unit

CSR Unit

Head of Corporate Banking

Head of SME Composite Finance

Retail & Others

Investment Administration

Division

Disbursement & Documentation Unit

Monitoring Unit

CIB Unit

Policy Unit

Staff Investment (House Building, Transport, Quard)

Compliance, CL&MIS Unit

Human Resources Division

HR Personnel Management

HR Policy

HR Training

Disciplinary Action Cell

Internal Control &

Compliance Division

Audit & Inspection Unit

Monitoring Unit

Compliance Unit



Principal Branch

Voluntary and Non-formal

Banking Division

Risk Management

Division

Marketing

Family Empowerment Islamic Micro-

Finance Program

AWQAF Property

Development Program

Other Activities Approval Unit

Monitoring & Recovery Unit

Special Asset Management

Division

Legal Affairs

Recovery Cell Affairs

Managing Director

Additional Managing Director

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Organogram of Social Islami Bank Limited

Board of Directors

Board Audit Committee

Executive Committee of the

Board of Directors Board

Secretariat

Board Audit Cell

Board Affairs Shares

SEVP/EVP (Chittagong Regional Office)

MD’s Secretariat

Administrative Unit

Vigilance & Inspection Unit

Shariah Supervisory Committee Secretariat

Member Secretary

Muraquib



SME & Agricultural Finance Division

Investment Risk Management

Division

Support Service

Software Development &

Maintenance

Security & Compliance

IT Division

BACH

Centralized Clearing Unit

International Division

Central Bank & Other Regulatory Approval

SWIFT Operation

Correspondent Banking

Remittance

Treasury Front Office

Foreign & Local Currency

Business Dealing

Exchange Rate Fixation & Profit Rate

Fixation

Foreign Remittance

Cell

Branding and Communication

Division

Branding

Communication

Card Division

Branches Control, General

Banking & Marketing

Division

Branches Control & General Banking

AML Unit

Monitoring Unit

CTR/STR

OBU

MIS/R&D

Alternative Delivery Channel

Centralized Remittance

Processing Unit

SIBL Training Institute

Logistic Support Division

Premises, Decoration & Dead Stock

Printing , Stationery & Stores

Transport & Maintenance

Security Services

Treasury Back Office

FC & Taka Dealing Reconciliation

Nostro A/c Management &

Reconciliation

Statement & Returns

Daily Statement of Treasury Operations

Vouchers & Profit/Loss Findings

(Treasury Mid Office) Foreign Currency Market Information Analysis & Strategy

MIS of Treasury Operations

Financial Administration

Division

Budget & Financial Control

Reconciliation

Central Accounts

ALCO Desk

B. Bank Returns

Basel-II Implementation

Cell

Trade Finance & RMG Division

Approval Monitoring

Centralized Trade

Processing Unit

RMG Department

Trade Finance Department

Approval Unit

Green Banking

Unit

MIS Reporting

Unit

Monitoring & Recovery

Unit

CSR Unit

Head of Corporate Banking

Head of SME Composite Finance

Retail & Others

Investment Administration

Division

Disbursement & Documentation Unit

Monitoring Unit

CIB Unit

Policy Unit

Staff Investment (House Building, Transport, Quard)

Compliance, CL&MIS Unit

Human Resources Division

HR Personnel Management

HR Policy

HR Training

Disciplinary Action Cell

Internal Control &

Compliance Division

Audit & Inspection Unit

Monitoring Unit

Compliance Unit



Principal Branch

Voluntary and Non-formal

Banking Division

Risk Management

Division

Marketing

Family Empowerment Islamic Micro-

Finance Program

AWQAF Property

Development Program

Other Activities Approval Unit

Monitoring & Recovery Unit

Special Asset Management

Division

Legal Affairs

Recovery Cell Affairs

Managing Director

Additional Managing Director

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Products & Services

Deposit Products

] Al-Wadeeah Current Account

] Mudaraba Savings Account

] Mudaraba Notice Deposit Account

] Mudaraba Term Deposit Account

a. 1 month

b. 3 months

c. 6 months

d. 12 months

• Mudaraba Monthly Profi t Deposit Scheme

• Mudaraba Millionaire Savings Scheme

• Mudaraba Education Deposit Scheme

• Sonali Din Special Deposit Scheme

• Mudaraba Special Deposit Pension Scheme

• Mudaraba Bashsthan Savings Scheme

• Mudaraba Hajj Savings Deposit (Kafela)

• Cash Waqf

• Mudaraba Lakhopati Deposit Scheme

• Mudaraba Double Benefi t Deposit Scheme

• Shamridhir Shopan Special Deposit Scheme

• Mudaraba Marriage Savings Scheme

• Mudaraba Mohorana Savings A/c (10 Years)

• Mudaraba Mohorana Savings A/c (5 Years)

• Shanchita Special Deposit Scheme

• Subarnalata Special Deposit scheme

• SubarnaRekha Special Deposit Scheme

• Sabuj Chaya Special Deposit scheme

• Sabuj Shayannaya Special Deposit Scheme

• Shukher Thikana Special Deposit Scheme

• Shachanda Protidin Special Deposit Scheme

• SIBL Young Star Account

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Investment Products• Bai-Murabaha

• Bai-Muajjal

• Hire Purchase under Shirkatul Melk

• Mudaraba

• Musharaka

• Bai-Salam

• Documentary Bill Purchase

• Quard

• SIBL Employees’ House Building Investment Scheme

• SME & Agricultural Finance

Service Products• Online Banking

• ATM 24/ 7

• CARD (Local & Foreign)

• Automated Clearing

• Electronic Fund Transfer

• Mobile Banking

• Offshore Banking

• Centralized Trade Processing Services

• Remittance

• Locker

• Student File

• SWIFT

• Capital Market Services through SIBL

Subsidiaries

• ADR (Alternate Delivery Channel)

• School Banking

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Media Accolade

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43

Shareholders Information• Capital Pattern of SIBL• Pattern of Shareholdings• Pattern of Shareholder by holdings in 2014• Shares held by the Directors in 2014• Market Price Information• Financial Calendar

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Capital Pattern of SIBL

Pattern of Shareholdings

Year Declaration No. of Face Value Cumulative Value of Cumulative Shares per Share no. of issued Capital value of (Taka) Shares for the year Capital (Taka) (Taka)

1995 Initial Capital 118,380 1,000 118,380 118,380,000 118,380,000 1996 - - 118,380 - 118,380,000 1997 6.43% Bonus issue for the year 1996 7,620 1,000 126,000 7,620,000 126,000,000 1998 - - 126,000 - 126,000,000 1999 Right Share Issued 74,000 1,000 200,000 74,000,000 200,000,000 2000 Placement 50,000 1,000 250,000 50,000,000 250,000,000 Initial Public Offer 10,000 1,000 260,000 10,000,000 260,000,000 2001 20% Bonus Issue (Declared in the year 2004) - - 260,000 - 260,000,000 2002 25% Bonus Issue (Declared in the year 2004) - - 260,000 - 260,000,000 2003 50% Bonus Issue (Declared in the year 2004) - - 260,000 - 260,000,000 2004 Bonus Issue (For the years 2001, 2002, 2003) 325,000 1,000 585,000 325,000,000 585,000,000 2005 - - 585,000 - 585,000,000 2006 - - 585,000 - 585,000,000 2007 1:1 Right Share 5,345,550 100 11,195,550 534,555,000 1,119,555,000 2008 17% Bonus Issue for the year 2007 1,903,243 100 13,098,793 190,324,300 1,309,879,300 2009 10% Bonus Issue for the year 2008 1,309,879 100 14,408,672 130,987,900 1,440,867,200 1:1 Right Share 12,508,587 100 26,917,259 1,250,858,700 2,691,725,900 2010 1:1% Bonus Issue for the year 2009 2,960,899 100 29,878,158 296,089,850 2,987,815,750 2011 14% Bonus Issue for the year 2010 41,829,420 10 340,610,995 418,294,200 3,406,109,950 1:1 Right Share 298,781,575 10 39,392,570 2,987,815,750 6,393,925,700 2012 10.50% Cash Dividend for the year 2011 - - - - 6,393,925,7002013 10% Bonus Issue and 5% Cash for the year 2012 63,748,994 10 637,489,940 7,031,415,6402014 12% Cash Dividend for the year 2013 - - - 7,031,415,640

Sl no Investor Group No. of No. of Percentage No. of No. of Percentage Shareholders Shares as on Shareholders Shares as on as on as on 31.12.2014 as on as on 31.12.2013 31.12.2014 31.12.2014 31.12.2013 31.12.2013

01 Sponsors & Placement 29 175059878 24.90 27 170026278 24.1802. Sponsor-Foreign 7 3939914 0.56 7 3939914 0.5603. Sponsor & Placement-Company 4 35227116 5.01 3 21127116 3.0104. General Public 71322 334952296 47.63 80820 404045409 57.4605. Institutions (Bank & Insurance) 66 21253699 3.02 66 20306314 2.8906. Institutions (Others) 1441 113649042 16.16 1593 72979399 10.3807. ICB Accounts Holders 57 463884 0.07 68 471973 0.0708. ICB 1 12722437 1.81 1 4421687 0.6309. ICB Unit Fund 1 2615025 0.37 2 3495025 0.4910. ICB Mutual Fund 8 124014 0.02 9 262655 0.0411. Employee 4 2879305 0.41 4 1804068 0.2512. Non-Resident Bangladeshi 12 254954 0.04 14 261726 0.04 72,952 70,31,41,564 100.00% 82,614 70,31,41,564 100.00%

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Pattern of Shareholder by holdings in 2014

Shares Held by the Directors in 2014

No. of No. of Percentage No. of No. of Percentage Share holding range Shareholders Shares as on Shareholders Shares as on as on as on 31.12.2014 as on as on 31.12.2013 31.12.2014 31.12.2014 31.12.2013 31.12.2013

Less than 500 shares 29063 4996514 0.71% 31864 50,12,253 0.71%

501-5000 36427 64401739 9.16% 42535 7,11,57,801 10.12%

5001-10000 3781 26494310 3.77% 4211 2,93,82,116 4.18%

10001-20000 2049 27726408 3.94% 2263 3,04,19,428 4.33%

20001-50000 980 29262273 4.16% 1090 3,22,76,868 4.59%

50001-99999999999 652 550260320 78.26% 651 53,48,93,098 76.07%

72,952 703,141,564 100.00% 82,614 70,31,41,564 100.00%

Sl no Name of the Director

Position held in the Number of Percentage of Total number of Bank as on Shares held on total holding Shares as on 31.12.2014 (31.12.2014) 31.12.2014

70,31,41,564

01 Major Dr. Md. Rezaul Haque (Retd) Chairman 1,40,67,491 2.00%

02 Mr. Md. Sayedur Rahman Vice Chairman 1,40,67,554 2.00%

03 Mr. Abdul Awal Patwary Director 1,40,73,417 2.00%

04 Mr. Md. Anisul Hoque

[Representative of Hamdard Laboratories Director 1,40,66,727 2.00%

(WAQF) Bangladesh]

05 Alhaj Nasiruddin Director 1,40,69,676 2.00%

06 Alhaj Sk. Mohammad Rabban Ali Director 1,41,01,998 2.01%

07 Mr. A Jabbar Mollah Director 1,42,08,452 2.02%

08 Mr. Md. Abdur Rahman Independent Director 0 0.00%

09 Mr. Abdul Mohit Independent Director 0 0.00%

10 Mr. Md. Abdur Razzaque General Public

Shareholders’ Director 5,78,338 0.08%

11 Major Gen Fazle Elahi Akbar(Retd.) Independent Director 0 0.00%

12 Mr. Mohammad Amin Uddin Director 1,40,62,949 2.00%

13 Mr. Md. Kamal Uddin [Representative of SifangSecurities (Pvt.) Ltd.] Director 1,41,00,000 2.00%

Total 1,273,96,602 18.11%

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Year 2014

Year 2015

Financial Calendar

Un-audited Consolidated results for the 1st Quarter announced on 30.04.2014

Un-audited Consolidated results for the 2nd Quarter announced on 31.07.2014

Un-audited Consolidated results for the 3rd Quarter announced on 30.10.2014

Audited Consolidated Financial Statements for the year ended 31st December 2014 approved on 28.02.2015

Declaration of Dividend for the year 2014 28.02.2015

Declaration of ‘Record Date’ for holding of 20th Annual General Meeting 10.03.2015

Notice of 20th Annual General Meeting served on 15.03.2015

20th Annual General Meeting to be held on 30.03.2015

Dividend for the year 2014 to be paid on 30.04.2015

Un-audited Consolidated results for the 1st Quarter to be announced on 30.04.2015

Un-audited Consolidated results for the 2nd Quarter to be announced on 31.07.2015

Un-audited Consolidated results for the 3rd Quarter to be announced on 30.10.2015

Audited Consolidated Financial Statements for the year ended 31st December 2015 approved on 28.02.2016

Dividend for the year 2015 expected to be declared on 28.02.2016

Expected date for declaration of ‘Record Date’ for holding of 21st Annual General Meeting 31.03.2016

Notice of 21st Annual General Meeting expected to be served on 14.03.2016

21st Annual General Meeting expected to be held on 31.03.2016

Dividend for the year 2015 expected to be paid on 30.04.2016

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Analysis & Value Added Statements• Performance of the Bank• SIBL at a Glance• Graphical presentation of SIBL• Statements of Value Addition and its Distributions• Economic Value Added (EVA) Statements• Market Value Added (MVA) Statements

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0

50000

100000

150000

200000

250000

Deposits

1500

00

1090

41

1079

00

1200

00

2300

00

1399

10

55003964.27

Investments ForeignExchangeBusiness

Target 2014

Achievement 2014

Performance of the Bank

Performance of the year 2014 has been conspicuous with a growth over the previous year recording achievements in different segments of (i) client deposit 13.60% (ii) Investment 25.58% (iii) Foreign Exchange Business 5.69% (iv) Operating Pro� t 36.98%. The bank has achieved 72.08% operating pro� t, 72.69% Deposit, 89.92% Investment, 60.83% Foreign Exchange Business towards the target set for the year 2014. Although the operational results for the year 2014 are behind the target, but are encouraging towards the journey for the year of 2015.

The operational results of the year 2014 was encouraging and SIBL believes that the efforts of the year 2014 will inspire & stimulate the employees of the

Performance of the Bank 2014 (� gure in million Taka)

Performance of the Bank 2013 (� gure in million Taka)

bank to accept the challenge of the year 2015 and accordingly the bank is in the process to explore every potentiality of each individual employee to deploy their sincere endeavor in the days ahead. In the year 2015, the bank has focused specially on the concepts of (i) Service Excellence (ii) Quality & Secured Investment (iii) Non Funded Business (iv) Recovery from both regular and non-performing Investment (iv) Exploration of Low Cost & no Cost deposits, Retail & Stable deposits particularly Scheme based deposit & (v) Maintenance of an Ideal Deposit Mix with a view to constraining the cost on one side and to establish a safe & stable deposit management system on the other. The results of the year 2014 are given hereunder:

Fig in million Taka

Indicators Target 2014 Actual- 2014 Actual-2013 Achievement percentage Growth %

Deposits 150,000.00 109,040.63 95,984.8 72.69% 13.60%

Investments 120,000.00 107,899.96 85,922.33 89.92% 25.58%

Foreign Exchange Business 230,000.00 139,910.00 132,374.70 60.83% 5.69%

Operating Pro� t 5,500.00 3,964.27 2,894.06 72.08% 36.98%

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SIBL at a Glance

*CRISL-Credit Rating Information and Services Limited

**ECRL-Emerging Credit Rating Limited

Sl no Particulars 2009 2010 2011 2012 2013 2014

01 Authorized Capital 4000.00 10000.00 10000.00 10000.00 10000.00 10000.00

02 Paid-up Capital 2691.72 2987.81 63693.92 6393.92 7031.42 7031.42

03 Total Shareholders Equity 3555.75 4198.77 9412.21 10181.97 11083.43 12143.38

04 Capital Base (Tier I & II) 3914.62 4678.56 9534.52 10596.51 11623.52 13078.26

05 Total Deposits 31588.16 44850.77 66852.55 93594.29 102104.48 124535.01

06 Client Deposits 27663.62 39833.37 56661.16 81091.39 95984.82 109040.63

07 Investments (General) 26580.58 36680.28 53908.58 76024.97 85922.33 107899.96

08 Investments (Shares & Securities) 1310.66 3049.72 5241.36 6144.01 8538.18 7823.73

09 Foreign Exchange Business 39110.00 61931.00 108308.30 126519.90 132374.70 139910.11

10 Operating Pro� t 1064.31 1638.63 2768.80 3617.82 2924.55 3964.27

11 Pro� t before Tax 726.88 1136.69 1901.28 2747.89 2024.66 3307.52

12 Fixed Assets 649.61 914.74 2134.87 2249.95 2653.88 2675.86

13 Total Assets 39980.82 55168.54 84406.18 115165.95 126616.56 1537374.67

14 Stock Dividend 11% 14% - 10.00% 0.00% 0.00% Cash Dividend - - 10.50% 5.00% 12.00% 18.00%

15 Investments as a % of 84.15% 81.78% 80.63% 81.23% 84.15% 86.64% total deposits

16 Investments as a % 96.08% 92.08% 94.65% 89.19% 86.78% 89.52% of Client deposits

17 Risk Weighted Capital 14.97% 9.33% 13.17% 11.52% 11.64% 11.36% Adequacy Ratio

18 Ratio of Classi� ed Investments 3.19% 4.76% 3.93% 3.33% 5.35% 4.56% to Total Investments

19 No. of Foreign Correspondents 2250 2250 2250 2230 2230 2230

20 Number of Employees 950 1252 1375 1625 1802 1922

21 Number of Branches 52 64 76 86 94 100

22 Book Value per Share 100 10 10 10 10 10

23 Earning per Share 18.39 2.15 1.81 2.25 1.74 2.71

24 Credit Rating by Long Term CRISL CRISL CRISL ECRL **ECRL ECRL Short Term A+ A+ A+ AA- AA- AA- ST-2 ST-2 ST-2 ECRL-2 ECRL-2 ECRL-2

Fig in million Taka

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Graphical presentation of SIBL

eratin Profit (Taka in Million)

2010 2011 2012 20130

5001000150020002500300035004000

2014

1,638.63

2,768.80

3,617.82

2,924.55

3,964.27

Net Current Assets (Taka in million)

2010 2011 2012 20130

2000

4000

6000

8000

10000

2014

1943.22

3852.84

9468.71

5700.066327.16

Net Asset Value per Share (Taka)

2010 2011 2012 20130

5

10

15

20

2014

14.05 14.72 15.92 15.7617.27

eratin Profit a a er enta e of orkin n

2010 2011 2012 201305

10152025303540

2014

39.03%

29.42%

35.53%

26.11%

32.65%

Earning per Share (Taka)

2010 2011 2012 20130.0

0.5

1.0

1.5

2.0

2.5

3.0

2014

2.15

1.81

2.25

1.74

2.71

Return on Assets (%)

2010 2011 2012 20130.0

0.5

1.0

1.5

2.0

2.5

3.0

2014

2.39

2.72 2.75

1.67

2.36

Profit after Tax (Taka in Million)

2010 2011 2012 20130

500

1000

1500

2000

2014

643.02

1083.42

1441.131220.2

1903.72

Stock Performance (Market Price per Share in Taka)

2010 2011 2012 20130

10

20

30

40

50

60

2014

51.8

26.219.4

13.3 13.6

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Total Eligible Capital (Taka in Million)

2010 2011 2012 20130

3000

6000

9000

12000

15000

2014

4678.56

9534.5210594.5

11623.513078.3

Total Share Holders' Equity (Taka in Million)

2010 2011 2012 20130

3000

6000

9000

12000

15000

2014

4198.77

9412.2110181.97

11083.412143.4

Foreign Exchange Business (Taka in Million)

2010 2011 2012 20130

30000

60000

90000

120000

150000

2014

61931

108308.30

126519.90 132374.72139910

2010 2011 2012 20130

20000

40000

60000

80000

100000

120000

2014

39833.37

56661.16

81091.39

95984.82109040.63

Branch Network

2010 2011 2012 20130

20

40

60

80

100

2014

64

7686

94100

Total Paid-up Capital (Taka in Million)

2010 2011 2012 20130

10002000300040005000600070008000

2014

2987.81

6393.93 6393.937031.42 7031.42

Total Deposit (Taka in Million)

2010 2011 2012 20130

30000

60000

90000

120000

150000

2014

44850.77

66852.55

93594.29102104.48

124535.01

Total Assets (Taka in Million)

2010 2011 2012 20130

50000

100000

150000

200000

2014

55168.54

84406.18

115165.95 126616.56

153737.47

General Investment (Taka in Million)

2010 2011 2012 20130

20000

40000

60000

80000

100000

120000

2014

36680.28

53908.58

76024.9785922.33

107899.96

Net Asset (worth in Million Taka)

2010 2011 2012 2013 2014

4198.77

9412.2110182.00

11083.4012,143.38

0

3000

6000

9000

12000

15000

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Report & Statements of Value Addition and its DistributionsValue Added Report for the year ended 31st December 2014

Value Added Report indicates exactly how a company accumulates total value from its area of operation during a particular time frame and accordingly shows how the added value has been distributed to the society in the backdrop of the general economy of a country.

Now a days the most complex and modern business environment does not earn pro� t for itself only rather it cares to the society and thus is committed to contribute to the economic growth. Such value is being added due to spill over economic impact due to operation of the business houses.

SIBL as a commercial bank, has a large scale of spill over economic impact side by side its � nancial impact through creating values for distributions to the society year to year.

Value Added Statement for the year ended 31st December 2014

Value addition is a measure of wealth as created by the bank through its banking activities. The Statement shows how the total wealth has been created and distributed among the stakeholders of the Bank in the year.

Value Added Statementfor the year ended 31 December 2014 Fig in million Taka

Particulars Year 2014 Year 2013Investment Income 13,943.27 13,629.42Income from Investment in Shares and Securities 296.95 325.67Commission, Exchange and Brokerage 1188.38 1026.57Other Operating Income 289.59 204.70 15,718.09 15,186.16Less Cost of Services & Supplies Pro� t paid on Deposits 9,007.20 9706.87Rent, Taxes, Insurances, Electricity etc. 253.25 227.85Legal Expenses 8.14 7.93Postage, Stamps, Telecommunication etc. 8.00 8.23Stationery, Printings, Advertisements etc. 80.83 91.00Directors’ Fees & Expenses 6.40 4.26Shariah Supervisory Committee’s Fees & Expenses 0.34 0.25Auditors’ Fees 0.72 0.52Repair of Bank’s Assets 27.00 17.89Other Expenses 369.89 431.52 9,761.77 10,496.32 Value added by Banking Services 5,956.32 4,689.85 Less Provisions related to Investment Speci� c provisions for Investment 270.37 752.69General Provisions for Investment 364.47 84.74General Provisions for off-Balance Sheet exposure 16.92 27.06Provision for other assets 5.00 4.91Provision for diminution in value of shares - - 656.76 869.40Total Value Addition 5,299.56 3,820.45

Particulars Year 2014 Year 2013Particulars Year 2014 Year 2013Investment Income 13,943.27 13,629.42Investment Income 13,943.27 13,629.42Income from Investment in Shares and Securities 296.95 325.67Income from Investment in Shares and Securities 296.95 325.67Commission, Exchange and Brokerage 1188.38 1026.57Commission, Exchange and Brokerage 1188.38 1026.57Other Operating Income 289.59 204.70Other Operating Income 289.59 204.70 15,718.09 15,186.16 15,718.09 15,186.16

Pro� t paid on Deposits 9,007.20 9706.87Pro� t paid on Deposits 9,007.20 9706.87Rent, Taxes, Insurances, Electricity etc. 253.25 227.85Rent, Taxes, Insurances, Electricity etc. 253.25 227.85Legal Expenses 8.14 7.93Legal Expenses 8.14 7.93Postage, Stamps, Telecommunication etc. 8.00 8.23Postage, Stamps, Telecommunication etc. 8.00 8.23Stationery, Printings, Advertisements etc. 80.83 91.00Stationery, Printings, Advertisements etc. 80.83 91.00Directors’ Fees & Expenses 6.40 4.26Directors’ Fees & Expenses 6.40 4.26Shariah Supervisory Committee’s Fees & Expenses 0.34 0.25Shariah Supervisory Committee’s Fees & Expenses 0.34 0.25Auditors’ Fees 0.72 0.52Auditors’ Fees 0.72 0.52Repair of Bank’s Assets 27.00 17.89Repair of Bank’s Assets 27.00 17.89Other Expenses 369.89 431.52Other Expenses 369.89 431.52 9,761.77 10,496.32 9,761.77 10,496.32 Value added by Banking Services 5,956.32 4,689.85 Value added by Banking Services 5,956.32 4,689.85

Speci� c provisions for Investment 270.37 752.69Speci� c provisions for Investment 270.37 752.69General Provisions for Investment 364.47 84.74General Provisions for Investment 364.47 84.74General Provisions for off-Balance Sheet exposure 16.92 27.06General Provisions for off-Balance Sheet exposure 16.92 27.06Provision for other assets 5.00 4.91Provision for other assets 5.00 4.91Provision for diminution in value of shares - -Provision for diminution in value of shares - - 656.76 869.40 656.76 869.40Total Value Addition 5,299.56 3,820.45Total Value Addition 5,299.56 3,820.45

Particulars Year 2014 Year 2013Investment Income 13,943.27 13,629.42Income from Investment in Shares and Securities 296.95 325.67Commission, Exchange and Brokerage 1188.38 1026.57Other Operating Income 289.59 204.70 15,718.09 15,186.16Less Cost of Services & Supplies Pro� t paid on Deposits 9,007.20 9706.87Rent, Taxes, Insurances, Electricity etc. 253.25 227.85Legal Expenses 8.14 7.93Postage, Stamps, Telecommunication etc. 8.00 8.23Stationery, Printings, Advertisements etc. 80.83 91.00Directors’ Fees & Expenses 6.40 4.26Shariah Supervisory Committee’s Fees & Expenses 0.34 0.25Auditors’ Fees 0.72 0.52Repair of Bank’s Assets 27.00 17.89Other Expenses 369.89 431.52 9,761.77 10,496.32 Value added by Banking Services 5,956.32 4,689.85 Less Provisions related to Investment Speci� c provisions for Investment 270.37 752.69General Provisions for Investment 364.47 84.74General Provisions for off-Balance Sheet exposure 16.92 27.06Provision for other assets 5.00 4.91Provision for diminution in value of shares - - 656.76 869.40Total Value Addition 5,299.56 3,820.45

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Distribution of Value added (%) - 2013

Report & Statements of Value Addition and its DistributionValue Added Report for the year ended 31st December 2014

Fig in million Taka

Distribution of Value Addition Year 2014 Percentage Year 2013 Percentage

To the Employees- as salaries & allowances 1665.17 31.42% 1514.11 39.63%

To the Government- as tax 1400.45 26.43% 802.95 21.02%

To the Society- as Zakat 63.58 1.20% 50.49 1.32%

To the growth of the entity-(-) 2170.36 40.95% 1452.9 38.03%

as Statutory Reserve (-) 661.5 12.48% 404.93 10.60%

as Retained Earnings (-) 1242.22 23.44% 815.27 21.34%

as Deferred Tax (-) 3.35 0.06% 1.51 0.04%

as Depreciation (-) 180.81 3.41% 155.27 4.06%

as Gratuity Fund 82.48 1.56% 75.92 1.99%

5299.56 100.00% 3820.45 100.00%

Distribution of Value added (%) - 2014

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Economic Value Added (Million Taka)

20140

200

400

600

800

1000

2013

742.86

920.45

Economic Value Added (EVA) Statementfor the year ended 31 December 2014

EVA indicates the true economic pro� t of a company. EVA is an estimate of the amount by which earnings exceed or fall short of required minimum return for shareholders at comparable risk. Shareholders are always conscious about their return on capital invested. As a commercial banking company, SIBL is deeply concerned for distribution of value to all of its Shareholders. EVA of SIBL has stood at Tk 742.86 million as of December 31, 2014 as against Tk 920.45 million in 2013.

Fig in million Taka

Particulars Year-2014 Year-2013

Total Revenue from Banking Services 15,718.09 15,186.16

Less Total expenses related to revenue -11,753.80 -12,292.10

Operating pro� t 3,964.29 2,894.06

Less Corporate Tax -1,400.45 -802.95

Net operating profi t after tax 2,563.84 2,091.11

Shareholders’ Equity 12,143.38 11,083.43

Add Accumulated provision for investment (Inclg. Off B/S items) 3,041.30 2,773.38

Sub Total 15,184.68 13,856.81

Average Shareholders’ Equity 11,613.40 10,632.70

Return of Equity 15.68% 11.01%

Capital Charges 1,820.98 1,170.66

Economic Value Added 742.86 920.45

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Market Value Added (MVA) is the different between the equity market value of a company and the book value of equity invested in the company. A high MVA indicates that the company has created substantial wealth for the shareholders. MVA is equivalent to the present value of all future expected economic value (EVA). The equity market value of the bank stood at Tk 9562.73 million whereas the book value of the equity stood at Tk 703.42 million resulting in MVA of 2531.31 million as of December 31, 2014 as against Tk. 2320.38 million in 2013.

20140

500

1000

1500

2000

2500

3000

2013

2531.312320.38

Market Value Added (Million Taka)

Market Value Added (MVA) Statementfor the year ended 31 December 2014

Fig in million Taka

Particulars Year-2014 Year-2013

Market Value of Total Equity 9,562.73 9,351.80

Book Value of Total equity. -7,031.42 -7,031.42

Market Value Addition 2,531.31 2,320.38

Total number of Share outstanding 703,141,564 703,141,564

Book Value per share 10.00 10.00

Market value per share 13.60 13.30

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Distinguished Shareholders, Ladies & Gentlemen

Assalamu-Alaikum

It is my immense pleasure to take the opportunity on behalf of the Board of Directors of Social Islami Bank Limited to present your bank’s achievements and progress of 2014 and cordially welcome you all to this great occasion –the 20th Annual General Meeting (AGM). I would like to pay sincere gratitude to our respected shareholders, clients, regulators and well-wishers for their relentless support and con�dence they have reposed on us. I am also delighted to place before

Chairman’s Foreword

you the Annual Report along with Auditors’ Report for the year ended 31 December 2014.

As a second generation Shariah-based Bank, the Social Islami Bank Limited was incorporated in the year 1995 under the profound leadership of the renowned economist--Professor Dr. M.A. Mannan--the founder chairman of the Bank in close cooperation and assistance from a group of Makkah / Jeddah based Bangladeshi expatriates, local entrepreneurs, and foreign dignitaries of the Islamic World.

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The broad objective of SIBL is different from other Islamic and contemporary banks. The operation of SIBL has been de�ned under a unique theme of three-sector banking model (I) Formal Sector, commensurate with Islamic Commercial Banking using modern technology; (II) Non-Formal Sector, based on a concept of empowering family through Micro Credit & Micro Enterprise Program; and (III) Voluntary Sector, inviting Social Capital Mobilization through Cash WAQF and others, with a �rm conviction to work together for a caring society. Our vision is to minimize the poverty level in Bangladesh. In this regard, the inherent concept and credence of “Working Together for a Caring Society” is always held high. To carry forward this commitment, the personnel of SIBL are imbued with the highest degree of enthusiasm, zeal and vigor to serve the society at large.

As you will note from the Directors’ Report, before saying few words in this great occasion, I want to recall the SIBL’s very special and unique product- CASH WAQF which has attracted much the different banks and Financial Institutions in the country and abroad and has received both Local & International accreditation because of uniqueness in features. The main feature of the CASH WAQF Deposit is that -it creates philanthropic practices on the hand of depositors and maintains a permanent nature deposit on the hand of a bank. Social Islami Bank Limited is the pioneer ever in the world to invent this unique product and the concept of this scheme has been well received by the public in general. Meanwhile, the Cash Waqf Program has been replicated by some local commercial banks. By opening a Cash Waqf Deposit Account, someone can get an opportunity to do welfare to the mankind through Sadaka-e-Jariah. SIBL urges all religious & af�uent persons of the society to come forward to mobilize Cash Waqf Deposit so that the pro�t may be utilized for the well being of mankind perpetually..

Dear Shareholders,The performances of the total Banking sector for the year 2014 are evaluated in the backdrop of ups and downs of domestic and global economic trends. World GDP growth is expected to edge up from 3.3 percent in 2014 to 3.8 percent in 2015. Although growth in emerging markets and developing economies will be

moderate at 5 percent, advanced economies are likely to grow at 2.3 percent in 2015, suggesting lackluster export prospects for the developing world. In the midst of dull growth of the emerging giants, China and India, Bangladesh’s projected growth at 6.4 percent in 2015 seems quite respectable.

The Bangladesh economy maintained the growth momentum registering a 6.1 percent growth of GDP in FY14. The growth of industry sector was lower in FY14 compared to the preceding year partly due to political problem and uncertainty. Moderate growth of agriculture sector along with satisfactory growth of services sector helped to achieve the 6.1 percent growth of the overall economy. During FY14, the average in�ation showed an upward trend, mainly due to increase in food in�ation although the nonfood in�ation declined during the same period. Broad money (M2) registered 16.1 percent growth in FY14 against the targeted growth of 17.0 percent and the actual growth of 16.7 percent in FY13. Total domestic credit increased from 10.9 percent in FY13 to 1 1.6 percent in FY14. Private sector credit growth was 12.3 percent in FY14 which was lower against the targeted growth of 16.5 percent mainly due to sluggish credit demand, political uncertainty and stringent lending practices by banks following some scams in some banks. On the other hand, the growth of credit to the public sector declined to 8.8 percent in FY14 against the target growth of 22.9 percent due to signi�cantly lower government borrowing from the banking sector. Instead of borrowing from banks, government collected a good amount of resources through selling National Savings Certi�cates. Export continued to grow from 10.7 percent in FY13 to 12.0 percent in FY14. Almost imports of all items in the import basket increased last year pushing the overall growth of imports from 0.8 in FY13 to 8.9 percent in FY14.Trade de�cit declined to USD 6806 million. Workers’ remittances stood lower at USD 14115 million in FY14 compared to the preceding �scal year , registering a negative growth of 1.6 percent. The current account balance showed a relatively small surplus of USD 1346 million in FY14 which is attributable to the negative growth of remittances. Supported by a signi�cant surplus in the combined capital and �nancial

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account, the overall balance recorded a surplus of USD 5483 million in FY14. This contributed to foreign exchange reserves reaching USD 21508 million at the end of FY14, suf�cient to meet over seven months of imports. In order to protect Bangladesh’s external competitiveness, Bangladesh Bank continued its interventions in the domestic foreign exchange market by purchasing foreign currencies as and when deemed appropriate. As a result, Taka-USD exchange rate remained stable during FY14.

Dear ShareholdersDespite political and business calamity, the operation of the Bank for the year 2014 was memorable and very meaningful towards its “Journey of Excellence”. In 2014, SIBL become the Bank of 100 branches and 1 (One) branch (SIBL Principal Branch) earned a three digit operating pro�t in the history of SIBL. Moreover, many procedural changes have taken place in banking operation and Remittance account also accmulated an amount of USD 100 million in 2014. Your bank is �nally able to declare 18% dividend for the year 2014 as against 12% in 2013 which can be mainly attributed for the strong fundamentals of the bank. At the end of the year bank’s Deposit (Client) & Advance stood at Tk 109,040.63 million and Tk 107,899.96 million in 2014. The Investment Deposit Ratio (ID Ratio) at the end of the year 2014 was 89.52% as against 86.78% in 2013. The ratio of non-performing loans stood at 4.56% compared to 5.35% in 2013. Six new branches have been opened and state-of-the-art IT services was introduced to offer better banking services to the existing and prospective clients.

Return on Equity (ROE) stood at 15.68% and the Earning per Share (EPS) was Tk 2.71 as against 11.01% and Taka 1.74 respectively in the 2013, which may be considered reasonable as against the industry average.

CapitalWe have successfully maintained our Capital Adequacy Ratio throughout the year 2014 and at the end of 2014, CAR stood at 11.41% (consolidated) as against 11.69% in 2013 where the required CAR is 10%

under BASEL-II capital accord. To face the challenges of BASEL-III, we have been ready to calculate and are ready to maintain buffer capital considering more risks. In this regard, many procedural changes have already taken place. Stress Testing exercises of the bank re¬af�rms its position assuming acute to most distressing circumstances. The process also included continuous persuasion of the business houses on the importance of Corporate Rating for a mutual win-win situation. The Bank’s Stress test-results of last 4 (four) quarters of 2014 indicate that the bank is shock absorbent under minor and moderate shock levels. After a minor shock at the end of the 4th Quarter of 2014, the CAR stood 10.29 % against 10.18% in 2013. Overall, the Bank has put an all-out effort to maintain and develop its major �nancial indicators.

Risk Management To ensure sustainable and consistent growth, SIBL has developed sound risk management policies and framework as per Bangladesh Bank guidelines. All the risk management policies and frameworks were reviewed by the Board of Directors of SIBL during the year 2014. A Risk Management Committee (RMC) was formed consisting of 5 (�ve) members of the Board of Directors in 2013. Main objectives of the RMC is to ensure proper and timely risk management in every sphere of the bank. The Board has been made responsible for Identifying the risks and formulation of appropriate strategies to control inherent banking risks. The Committee submits decisions and recommendations to the Board on quarterly basis for further review and guidance in the interest of the stakeholders. To streamline the risk management system of the bank, a separate division called “Risk Management Division” has been formed where a Deputy Managing Director is working as Chief Risk Of�cer (CRO). The Division is staffed with some brilliant and young professionals for consolidated risk management. Besides that, a Management level Risk Management Committee is actively working to focus the entire risk management system of the bank. During the year, total 4 (four) nos. of RMC (Risk Management Committee) meeting were held.

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Green BankingThe concept of Green Banking has been emerged from global warming issue. Social Islami Bank Ltd. has declared to prefer eco-friendly business and energy ef�cient industries at the time of selecting Investment clients. Adoption of Green Banking Policy by the bank has been reducing paper-work to a great extent. More and more Green-Banking activities during the year 2014 have successfully been recorded. The Bangladesh Bank has honored SIBL and ranked it under the “top ten banks in Bangladesh” In 2012. During the year under review, SIBL disbursed a total some of Taka 6,518.03 million towards Green Banking investment account compared to Taka 4,196.66 million in 2013 that shows 55.31% growth. Corporate GovernanceSocial Islami Bank Limited has given highest priority to develop and ensure corporate governance. SIBL strictly adheres to the compliance requirements of Bangladesh Bank relating to the Directors. Duties and responsibilities along with code of conducts of the Chairman, Director, Managing Director, Company Secretary, Chief Financial Of�cer, Board and Head of Internal Control & Compliance of Social Islami Bank limited are speci�cally de�ned by the Board of Directors of SIBL and all such personnel have signed under their own hand to abide by their code of conduct. SIBL has separate code of conduct for its employees and as you will note from the Director’ Report, also compliant of the code of conduct set by the Bangladesh Securities & Exchange Commission. During the year under report, SIBL closely observed all compliance issues including Shariah and ensured timely all regulatory compliances. Branding & Team spiritA division called “Branding & Communication Division” has been formed headed by a Deputy Managing Director which is mainly engaged in image building activities using all modern concepts & tools so that the messages of our bank easily reach to the grassroots level to the nation and abroad. To support the total activities and efforts of the bank, this division is always planning and generating ideas which have really made us con�dent in our day to day working schedule. The bank formally declared its Branding & Communication

policy in 2010 and since then many ideas have been implemented that are stimulating us towards building of team spirit with new and visionary zeal. The activities of SIBL Branding have brought many procedural changes in a developed way which is clearly visible. Now, SIBL is undoubtedly gaining momentum in its day to day activities to implement the slogan “Journey towards continuous excellence” by strengthening the Bank’s �nancial capability to an international standard, increasing the brand image, and by practicing high degree of planned corporate good governance.

Corporate Social ResponsibilityI am also pleased to inform you that operations of 2014 were meaningful and memorable for many reasons. This year, Corporate Social Responsibility (CSR) activities of the Bank expended Taka 65.10 million against Taka 53.20 million in 2013 under Health, Education, Sports, Disaster Management and Environmental programs—mostly belonging to social utilities that reaf�rm our commitment to help many sectors. Operating Expenses, Pro�t of Cash Waqf Fund, Compensation Fund, Doubtful Income and Zakat Fund are the main source of CSR activities of the bank.

Human Resources & DevelopmentTo provide developed and quick services to customers with full satisfaction is a very challenging job in this competitive banking era. Keeping this challenge in view, we have focused on the development of human resources and best HR practices in our Bank. To this end, recruitment of fresh blood and retention of competent personnel are our number ONE priority. SIBL always tries to sort out all possible ways it deems bene�cial to promote its employees’ professional skill and ef�ciency. It has its own Training Institute, which rendered useful training to 1121 employees last year and 510 employees from the Bank obtained training from outside including BIBM in 2014 compared to 386 in 2013. The Training Institute of SIBL conducted 5 (�ve) foundation training courses for total 182 nos. of fresh Of�cers and 13 workshops on different burning issues related to banking industries where 512 nos. different Of�cers and executives had participated. We recognize our personnel by awarding most competitive pay scale and incentives including different types of long-term bene�ts like

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Provident Fund, Gratuity, Super Annuity Fund (the then Social Insurance), Leave Encashment etc. Depending on the market and growth of the Bank, we review the pay structure on a regular interval basis. Performance of the employee is determined on the basis of annual employee rating (Annual Con�dential Report—ACR) system along with meeting key performance indicators. Deserving employees are rewarded under a performance-linked award system with accelerated promotion.

Products & ServicesSIBL is looking forward to expand its area of operation from urban to rural by introducing new customized products and services that are tailored to different economic class of people of the society in order to bring the un-banked people into banking channels. During the year 2014, many Products and Services were invented by the bank. Enormous emphasis were given to create a technology based banking environment realizing the facts that spending on widespread technology would be an Investment to support our growth and accordingly your bank has been relentlessly pushing to popularize technology driven products and services.

Challenge 2015We have taken the year 2015 as a challenge with the promise to increase the stakeholders’ value and be valued as a compliant organization. Adopting new strategic business policy, your bank will leave no stone unturned to boost business in all areas of operation

to achieve its corporate goal. SIBL emphasises on employment generation, environment friendly green banking for equitable distribution of resources over geographical territory for sustainable growth of macro economy of the country. The pro-active management team of SIBL with its talent & skill has been working to continuously bring success in the performance of the bank.

In conclusion, I would like to thank you all for your kind presence in the 20th Annual General Meeting of the Bank. I would further recall and express my deep sense of gratitude on behalf of the Board to Bangladesh Bank, Well-wisher Shareholders and Stakeholders, Bangladesh Securities and Exchange Commission and other regulators for their sincere support, cooperation and guidance in our quest for excellence. I also place on record my appreciation to the efforts made by the management of SIBL for their hard work and deep-rooted commitment towards achieving our cherished goals.

Ma-Assalam


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Bismillahir Rahmanir Rahim.

All praises be to the Almighty Allah, the Most Gracious and the Most Merciful, and His peace and blessings be upon the Prophet Muhammad (Sallallahu alaihi wasallam) and his descendants and companions.

Honourable Shareholders, respected Members of the Board and my beloved Members of Team SIBL - Assalamu alaikum wa rahmatullahi wa barakatuhu.

At the outset I would like to express my humble gratitude to the Almighty Allah for helping us to complete a challenging year with remarkable performance. Year 2014 was the 19th year of operation since SIBL’s inception in 1995. By the grace of Allah Subhanahutala this Bank has come a long way very successfully with the continuous support of our honourable Shareholders, valued Clients, distinguished Patrons and Well-wishers. For all the achievements, SIBL is also indebted to the pragmatic guidance of its esteemed Members of the Board of Directors and the dedicated hard work of Team SIBL. I sincerely and cordially thank you all from the bottom of my heart for your invaluable support and contribution towards the growth of this Bank.

I would also like to recall with great respect the contribution of those honourable shareholders, valued clients, respected Directors and beloved colleagues who breathed their last and

are no more with us. I express my deep condolences to their bereaved families. May Allah Subhanahutala grant them all Jannatul Ferdous.

As a whole 2014 was a challenging year for the economy due to different adverse factors. The economic performance of the country was under tremendous pressure because of the political transition process, limited resources, stringent monetary policy, excess liquidity in the money market, less demand for new investment and absence of quality investment opportunity. SIBL, however, accepted the challenge and withstood the adversity successfully. Alhamdulillah, SIBL has marked the year 2014 with solid success and also achieved glowing growth in different key areas of its operation.

Opening of the 100th Branch of the Bank, earning more than 100 million dollar as foreign remittance in a year, achieving the highest ever amount of pro�t for SIBL, adding more than Tk. 1000 million to pro�t over the year 2013, earning pro�t of more than Tk. 1000 million for the �rst time by a Branch (Principal Branch, Dhaka) and obtaining the 5th position in growth among the highest pro�t earning private banks of Bangladesh – all these are marvellous milestones in the history of SIBL set in the year 2014. Setting these milestones was possible due to the overall supervision and pragmatic guidance of our honourable Directors, dynamic leadership of the Management,

From the Desk of Managing Director

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untiring efforts of my colleagues working at different levels of the Bank and the con�dence and trust you have placed on us and on our endeavour. Jazakallah khair.

In the year under report Capital of the Bank increased and stood at Tk.13078.26 million which was Tk. 1,1623.52 million in 2013. Total Deposit and total Asset of the Bank stood at Tk.124,535.01 million and Tk. 153,737.47 million respectively as on 31st December, 2014 compared to Tk. 10,2104.48 million and Tk. 12,6616.56 million respectively as on 31st December, 2013 indicating growths of 21.97% and 21.42% respectively over 2013. The Bank achieved 25.58% growth in investment with a total investment portfolio of Tk. 107,899.96 million in 2014 compared to Tk. 8,5922.33 million in 2013. Import business of the Bank stood at Tk.79024.20 million in 2014 with 6.99% growth over the previous year, while Export business of the Bank stood at Tk. 53044.90 million in 2014 with 2.45% growth over the previous year. Total Foreign Remittance was Tk. 7839.90 million in 2014 with 16.31% growth over the previous year. Total Foreign Exchange business of the Bank was Tk.139910.00 million in 2014 with 5.69% growth over the previous year.

Most importantly, our relentless efforts to make the non-performing assets performing paid off. In 2014 the classi�ed investment of the Bank decreased to 4.56% of the total investment. It was 5.35% in 2013. To maintain asset quality of the Bank strict analysis of investment proposals for approval, post disbursement strong monitoring and adequate securitization are regularly completed. As a result of all such efforts, SIBL registered an operating pro�t of Tk. 3964.27 million in the year 2014 with remarkable growth of 36.98% compared to Tk. 2894.06 million in 2013.

We strongly believe that stakeholders’ satisfaction is the key to sustainable growth of any organization. And clientele of SIBL covers people from all walks of the society. So, we always attach the highest importance to render prompt and personalized services to our multifarious clients. In addition to furnishing banking services to the recipients, SIBL renders counseling services on special requirements. In line with the �nancial inclusion policy of Bangladesh Bank we have extended our Branch Network further and opened our 100th Branch at Kankirhat, Noakhali this year to bring more people under the coverage of our banking services.

Keeping in consideration the increasing demand of the customers, SIBL is tirelessly working to design and develop new banking products with quality customer service. We have aimed to consolidate our business in more focused areas like SME, RMG sector, non-funded business, agro-�nance, remittance and alternative delivery channels. Under the alternative delivery channel, services like ATMs, SMS banking and Internet banking have already been introduced. Now we are working fast to introduce “SIBL aKash”, our mobile banking platform, to offer our valued customers modern and simpler banking facility. We also emphasize much on environmental and green banking issues in all our activities.

Moreover, to achieve the corporate objective of poverty alleviation, a new Division in the name of “Voluntary & Non-Formal Banking Division” has started functioning in the Bank. The main function of this Division will be related to Family

Empowerment Islamic Micro-�nance Programme (FEIMP) and Awqaf Property Development Programme (APDP). We have also approached Islamic Development Bank (IDB) for assistance from their Awqaf Properties Investment Fund (APIF) to make our Awqaf Property Development Programme more effective and sustainable. Already 15 (�fteen) rural Branches have been selected for the Family Empowerment Islamic Micro-�nance Programme and, initially, the programme shall be started in 4 (four) Branches. Skilled manpower has already been recruited for conducting the said programmes.

On the other hand, as a fully Islamic Shariah-based bank SIBL always try to follow the teachings of Islam in our activities to earn the blessings of Almighty Allah as well as to strengthen the trust of our clients. Our Bank has a Shariah Supervisory Committee consisting of prominent Islamic Scholars, Economists and Lawyers to advise the Management on Shariah matters relating to the business operations. Branches are being regularly audited by the Shariah Inspection teams. Necessary guidance with required rules and procedures based on Islamic Shariah principles are being adopted as per Bangladesh Bank guidelines and advice of the Bank’s Shariah Supervisory Committee.

With the slogan “Working Together for a Caring Society” SIBL has always been responding spontaneously to its social commitment. Corporate Social Responsibility (CSR) activities of SIBL are being done by a separate unit properly staffed. SIBL’s CSR activities covered �nancial inclusion (in the form of �nancing agriculture & SME sectors, women entrepreneurs, renewable energy, irrigation by solar power, etc.), donation to the individuals covering education, health, disaster management (family rehabilitation), environment (social utility), sports, art & culture and NGOs for supporting different welfare activities. CSR activities of the Bank are continuously extending. The Bank has contributed a sum of total Tk. 65.10 million in the year 2014 which was Tk. 53.10 million in the year 2013.

In view of the above, I can assure you with con�dence that SIBL is, insha Allah, ready to accept challenges of the future and to maintain its momentum in growth of business and pro�tability in the years to come. The successes of 2014 are the shining re�ections of the potential of this organization and af�rmation that our journey towards excellence is indomitable.

May Allah Subhanahutala bless us all and grant us happiness, success and prosperity.

Aameen.

Ma’asalama.

Md. Sha�qur RahmanManaging Director

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Bismillahir Rahmanir Rahim.

I take this opportunity to express my sincere gratitude to all honourable Shareholders, valued Clients, distinguished Patrons and Well-wishers. It is a matter of great honour and privilege to present before you the Management Report & Analysis on the different aspects and activities of Social Islami Bank Ltd. in the year 2014.

VisionVision of this Bank is to minimize the poverty level in Bangladesh. In this regard, the inherent concept and credence of “Working Together for a Caring Society” is always held high. To carry forward this commitment, the personnel of SIBL are imbued with the highest degree of enthusiasm, zeal and vigor to serve the society.

Customers ServiceThe Bank has focused on rendering digni�ed, prompt and personalized services to the customers. SIBL believes in developing strong interpersonal relationship. As such, the Bank is morally bound to provide high quality banking services supported by the latest technology to obtain optimum return on shareholder’s equity ensuring safety of depositor’s money and making all-out efforts to introduce innovative Islamic banking products to the existing and prospective customers. SIBL is happy that the Bank could give enough emphasis on empowering poor families by creating income opportunity and providing �nancial support to make them self-reliant. The Bank considers that services to be of utmost importance to improve the fate of deserving people in our society. Now, SIBL has been able to extend more comfortable services to the valued clients such as any-branch-banking, 24/7 ATM services, VISA Debit and Credit Card, SMS Banking, Internet Banking, Mobile Banking, Electronic Fund Transfer, Central Clearing facilities, and the like. These services have surely added new dimensions and have offered new and advanced means of banking to the clients.

SIBL is looking forward to expand its area of operation from urban to rural by introducing new customized products and services that are tailored to different economic classes of people of the society in order to bring the un-banked people into banking channels.

BrandingSIBL is undoubtedly gaining momentum in its day-to-day activities to implement the slogan “Journey towards continuous excellence” by strengthening the Bank’s �nancial capability to an international standard, increasing the brand image, and practicing high degree of planned corporate good governance. Change of “Logo” of the

Bank has brought in new team spirit among the members of the SIBL family and the year has been declared as a “Journey towards continuous excellence”. During the year under report, six new branches have been opened to enter into the ‘Centrury Branches Club’ and state-of-the-art IT services has been introduced to offer better banking services to the existing and prospective clients.

Information TechnologyThe Bank has given due emphasis on the continuous development of Information Technology (IT). In this regard, some young and experienced professionals are working to explore the ideas of the cutting-edge, new IT products and services so that our IT-based banking service can reach to the “banked and un-banked” people around the country.

Green BankingThe Bank has specially focused on green banking to safeguard the mother planet. The concept of Green Banking has been adopted by reducing paper work to a great extent. Multifarious Green Banking activities have successfully been done in 2014. Bangladesh Bank has honoured SIBL and ranked it under the “Top ten banks in Bangladesh” in 2012. During the year 2014, a sum total of Taka 6518.03 million was disbursed under ETP, Solar Plant/ Energy Renewable Plant, HKK and other Green Industry compared to Taka 4196.66 million in 2013. As on 31st December, 2014 total outstanding Investment amount was Taka 3663.41 million compared to Taka 2950.11 million in 2013 under Green Finance Project.

Human Resources DevelopmentThe Bank has regularly arranged in-house and outside training programmes for the professional development (PD) of the employees so that they can acquire the current, advanced level banking knowledge and face the challenges of the modern banking. During the year under review, total 510 nos. of employees of the Bank have been trained from BIBM—the most prestigious Institute of the country and other reputed institutions. The role of our Human Resource Division (HRD) is praiseworthy and it is truly the core strength of the Bank.

SIBL always recognizes its personnel by awarding most competitive pay scale and incentives including different types of long-term bene�ts. Depending on the market and growth of the Bank, the Bank reviews the pay structure on a regular interval basis. Performance of the employee is determined on the basis of annual employee rating (Annual Con�dential Report—ACR) system along with meeting key performance indicators. Deserving employees are rewarded under a performance-linked award system with accelerated promotion.

Management Report & Analysis

Managem

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ComplianceManagement of the Bank very closely observes the issues related to regulatory compliances including Islamic Shariah. To guide the Shariah matters of the Bank, there is a Shariah Supervisory Committee (SSC). The SSC members are highly quali�ed and competent people in Islamic Laws, Islamic Economics, Islamic Banking and Finance. Shariah Supervisory Committee is active and vigilant over the day-to-day activities of the Bank being conducted strictly in line with the Islamic principles. SIBL is committed to be one of the leading banks with the

development and practices of compliance culture in every sphere of the Bank to march towards achievement of the desired objectives of targeting poverty alleviation and overall socio-economic development of the vast number of poor families of the country. During the year, the Bank put its all-out efforts to be compliant in all aspects of banking operation and controlled all the major �nancial indicators either regulatory or limit approved by the board. The Key Financial Indicator Limits and Utilization as on 31st December, 2014 are given below:

Particulars LimitsName of the Month

Utilization/MaintainedUnused/(Excess)

Remarks

Investment and Deposit

Ratio (ID Ratio)

Standard ID ratio for Islami Bank is 90%. Social Islami

Bank is always optimistic to maintain 90% throughout

the year.

Oct’14 90.42% -0.42% Not Complied

Nov’14 91.78% -1.78% Not Complied

Dec’14 89.48% 0.52% Complied

MTF Ratio (Liability ma-ture> 1year

/ Assets mature> 1

year

On the basis of his-torical trend analysis and

considering the short term liability matching

and pro�tability as well, standard Medium Term Funding (MTF) ratio has set from 50% to 90%.

Oct’14 82.54% 7.46% Complied

Nov’14 82.54% 7.46% Complied

Dec’14 84.31% 5.69 % Complied

Maximum Cum. Out-�ow (Net

out�ow up to 1 Month

bucket)

20% of the Balance Sheet Amounts

Oct’14 12.70% 7.30% Complied

Nov’14 13.33% 6.67% Complied

Dec’14 13.28% 6.72 % Complied

Wholesale Borrowing

(highest bor-rowing)/ Net Placement

Maximum gross 30% and net (wholesale

borrowing – wholesale placement) 10% of total deposit and borrowing

Oct’14 Tk. 7007.60 million or 5.58% Tk. 554.51 Crore or 4.42%

Complied

Nov’14 Tk. 7283.70 million or 5.78% Tk. 531.57 Crore or 4.22%

Complied

Dec’14 Tk. 10561.40 million or 8.04% Tk. 258.20 Crore or 1.96%

Complied

Statutory Li-quidity Ratio

(SLR)

The Bank is required to maintain 5.50 % SLR on Time and Demand

Liability.

Oct’14 Throughout the month, SLR was maintained above 05.50

%. Required SLR was Tk. 5963.10 million.

Surplus SLR

was Tk. 1159.00 million

Complied

Nov’14 Throughout the month, SLR was maintained above 05.50


Surplus SLR was

Tk. 539.50 million

Complied

Dec’14 Throughout the month, SLR was maintained above 05.50


Surplus SLR was

Tk. 651.00 million

Complied

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Capital Management During the year under review, management of the Bank was even more cautious in proper risk management of the Bank. The Bank has successfully maintained the Capital Adequacy Ratio (CAR) of 11.41% (consolidated) as against the required CAR of 10% under BASEL-II capital accord. To face the challenges of BASEL-III, the Bank is getting prepared. In this regard, many procedural changes have already taken place.

1. Maintaining minimum capital requirement against major risks under Pillar I of BASEL-II:

a) Credit Risk/ Investment Risk: Credit risk is the potential that a bank borrower or counterparty fails to meet its obligation in accordance with agreed term. Credit risk exposed an amount of Tk. 91111.66 million as risk weighted assets (RWA) and the capital requirement for the credit risk was Tk. 9111.17 million in 2013 against which the Bank maintained Tk. 11623.52 million as capital. In the year of 2014 RWA for credit risk was Tk. 105531.01 million and the capital requirement for credit risk was Tk. 10553.10 million and the Bank maintained Tk. 13078.26 million, which means that the Bank maintained suf�cient capital to absorb the shock arising from market risk.

Particulars LimitsName of the Month

Utilization/MaintainedUnused/(Excess)

Remarks

Cash Reserve

Requirement (CRR)

The Bank is required to maintain a minimum credit balance with the Bangladesh Bank (in-

cluding BB TT in transit) @ 6.50 % on Time and

Demand Liability on fort-night basis and 6.00%

on daily basis.

Oct’14 Throughout the month CRR was maintained above 6.50%.

Required CRR was Tk. 7047.30 million.

Surplus CRR was

Tk. 540.00 million

Complied

Nov’14 Throughout the month CRR was maintained above 6.50%.


Surplus CRR was

Tk. 893.80 million

Complied

Dec’14 Throughout the month CRR was maintained above 6.50%.


Surplus CRR

was Tk. 3695.30 million

Complied

Risk Weight-ed Capital Adequacy Ratio (RW-

CAR)

The Bank is required to maintain a minimum Capital of Tk 400 Crore or equivalent to 10% of total risk weighted as-

sets whichever is higher

Oct’14 10.53% N/A Complied

Nov’14 10.53% N/A Complied

Dec’14 10.53% N/A Complied

b) Market Risk: Market risk is de�ned as the risk of losses in on and off-balance sheet positions arising from �uctuation in market prices. The market risk positions subject to this requirement are: i) The risks pertaining to interest rate related instruments and equities in the trading book; and ii) Foreign exchange risk and commodities risk throughout the Bank (both in the banking and trading books).

In Bangladesh, risk weighted asset on market risk is calculated by considering risks deriving from changes in interest rates and equity prices in the banks’ trading books in respect of exposure to risks deriving from changes in foreign exchange rates and commodity price in the overall banking activity. In the year 2013 SIBL had an amount of Tk. 2307.00 million RWA for market risk and the capital requirement for the market risk was Tk. 230.70 million and it was maintained accordingly. In 2014, RWA for market risk was Tk. 1634.00 million and the capital requirement for credit risk was Tk. 163.40 million against which the Bank maintained full amount, which means the Bank maintained suf�cient capital to absorb the shock arising from market risk.

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c) Operational Risk: Operational Risk is de�ned as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. Basic Indicator Approach is used for calculating capital charge for operational risk as of the reporting date. As per risk based capital adequacy guidelines, capital charge for operational risk is equivalent to 15% of average annual gross income of three previous years where negative �gures are excluded. In the year 2013 we had an amount of Tk. 6415.50 million RWA for operational risk and the capital requirement for the operational risk was Tk. 641.55 million and it was maintained accordingly. In the year 2014 RWA for operational risk is Tk. 7954.50 million and the capital requirement for credit risk is Tk. 795.45 million against which the Bank maintained full amount.

2. Maintaining adequate capital requirement against all risks (risk pro�le) under Pillar II of BASEL-II:

Adequate capital is needed to be maintained considering the risk pro�le of the Bank under Pillar II of BASEL-II. In case of Bangladesh, generally the following risks are considered for maintaining additional capital requirement under supervisory review process (SRP):

a. Residual Riskb. Concentration Riskc. Liquidity Riskd. Reputation Riske. Strategic Riskf. Settlement Riskg. Evaluation of Core Risk Managementh. Environmental & Climate Change Riski. Other material risks.

To assess the capital charge for the above risks Bangladesh Bank has given a guideline and instructed the banks to develop an Internal Capital Adequacy Assessment Process (ICAAP). In 2013, the additional capital requirement of SIBL was Tk. 1168.80 million considering the aforesaid risks and accordingly the total capital requirement was increased to Tk. 10852.70 million against which the Bank maintained Tk. 11623.52 million. In 2012, the additional capital requirement of Social Islami Bank Limited was Tk. 814.00 million considering the aforesaid risks and accordingly the total capital requirement was Tk. 10005.30 million and the Bank maintained capital of Tk. 10596.51 million.

Assets Liability ManagementActivities of the Assets Liability Management of the Bank are mostly visible in proper liquidity planning and in matching of asset-liability gap despite the existence of volatile money market. To mitigate the investment

risks, the Bank has adopted some massive changes in the investment processing, sanctioning, approval and monitoring system as per the core risk guidelines of Bangladesh Bank. Some well-known corporate business houses and individuals of the country have joined with us as our business partners.

Corporate Social ResponsibilityThis year Corporate Social Responsibility (CSR) activities of the Bank expanded to Taka 6.51 crore under Health, Education, Sports, Disaster Management and Environmental programmes as against Taka 5.32 crore in 2013 to reaf�rm the commitments of the Bank towards society.

SME & Agricultural InvestmentDue emphasis was given on SME and Agricultural Financing that stood at Taka 2134.98 crore in 2014 as compared to Taka 716.43 crore in 2013 which is a tremendous growth of 198.70%.

PerformanceThe Banking sector has achieved a slow growth and was under pressure due to political unrest throughout the year 2014. Despite such political calamity, the year 2014 was quite eventful at home and abroad. Nevertheless, SIBL maintained and achieved a stable position in all key areas of its operations overcoming manifold challenges. This year SIBL has joined “100 Branches Club” and one of it Branches (i.e. SIBL, Principal Branch) has earned a three-digit operating pro�t �gure for the �rst time in the SIBL’s development journey. Out of 100 Branches, Operating Performance of 2014 of some Branches may be mentioned as under:

(i) 5 Branches achieved 100% Deposit Target,(ii) 23 Branches achieved 100% Investment Target,(iii) 5 Branches achieved 100% Foreign Exchange Business Target, and (iv) 21 Branches achieved 100% Pro�t Target as set out for the year 2014.

11 Branches which incurred loss during the year are expected to be brought under pro�t club by June 2015. Capital of the Bank stood at Tk.13078.26 million compared to Tk. 1,1623.52 million in 2013. Total Deposit and total Asset of the Bank stood at Tk.124,535.01 million and Tk. 153,737.47 million respectively in 2014 compared to Tk. 10,2104.48 million and Tk. 12,6616.56 million in 2013. The Bank achieved 25.58% growth in investment with a total investment portfolio of Tk. 107,899.96 million in 2014 compared to Tk. 8,5922.33 million in 2013. Import business of the Bank stood at Tk.79024.20 million

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in 2014 with 6.99% growth over the previous year, while Export business of the Bank stood at Tk. 53044.90 million in 2014 with 2.45% growth over the previous year. Total Foreign Remittance was Tk. 7839.90 million in 2014 with 16.31% growth over the previous year. Total Foreign Exchange business of the Bank was Tk.139910.00 million in 2014 with 5.69% growth over the previous year. The classi�ed investment of the Bank decreased to 4.56% from 5.35% in 2013 and �nally registered an operating pro�t of Tk. 3964.27 million in the year 2014 with remarkable growth of 36.98% compared to Tk. 2894.06 million in 2013. 6 new Branches were opened and SIBL became the Bank of 100 Branches. Total manpower of the Bank is 1922. GP Ratio (Gross Pro�t Ratio) of 2014 was 55.26% compared to 49.65% in 2013. In the year under review, country’s money market was soft and domestic lending rates have fallen. Return on equity was 15.68% in 2014 against 11.01% in 2013. Current ratio for the year 2014 was 1.28 times which has been steady since long. The Bank was more levered in 2014 (Debt equity ratio 10.26 times) compared to 2013 (ratio 9.21 times). Cost of Deposit was 7.66% in 2014 compared to 9.04% in 2013. Return on Average Assets was 2.36% in 2014 against 1.67% in 2013. At the end of year 2014, EPS and PE Ratio was Taka 2.71 and 5.02 times respectively compared to Taka 1.74 and 7.66 times in 2013.

Debt Equity Ratio (Times)

2010 2011 2012 20130

2

4

6

8

10

12

2014

10.68

7.1

9.19 9.2110.26

ro Profit ratio ( )

2010 2011 2012 20130

1020304050607080

2014

67.7659.9

48.72 49.6555.26

Current Ratio (Times)

2010 2011 2012 20130.0

0.3

0.6

0.9

1.2

1.5

2014

1.02 0.97 1.04

0.75

1.28

Profit efore Tax (Taka in Million)

2010 2011 2012 20130

500

1000

1500

2000

2500

3000

3500

2014

1136.69

1901.28

2747.89

2024.66

3307.52

Return on Equity (%)

2010 2011 2012 20130

5

10

15

20

2014

15.31

11.51

14.15

11.01

15.68

Dividend Cover Ratio

2010 2011 2012 20130.0

0.5

1.0

1.5

2.0

2014

1.54 1.611.5 1.45 1.5

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Net Asset (worth in Million Taka)

2010 2011 2012 2013 2014

4198.77

9412.2110182.00

11083.4012,143.38

0

3000

6000

9000

12000

15000

PE Ratio

2010 2011 2012 20130

5

10

15

20

25

2014

24.53

14.51

8.61 7.665.02

Cost-Income Ratio

2010 2011 2012 20130.0

0.1

0.2

0.3

0.4

0.5

2014

0.380.33

0.37

0.470.41

Sl. No.

Branch NameCost

of Fund

Employ-ee Cost

Over-head Cost

Total Overhead

Cost

Cost Of Fund With Overhead

Earning Yield

Spread

(1) (2) (3) (4) (5) 6=(4+5) 7=(3+6) (8) 9=(8-7)

1 Principal Branch 6.8 0.59 0.16 0.75 7.55 13.74 6.19

2 Agrabad Branch 8.89 1.12 0.5 1.62 10.51 14.97 4.46

3 Khulna Branch 9.13 1.78 0.61 2.4 11.52 14.14 2.62

4 Sylhet Branch 8.65 0.82 0.3 1.12 9.77 14.03 4.26

5 Rajshahi Branch 9.09 1.47 0.55 2.02 11.11 9.38 -1.73

6 Gulshan Branch 9.28 0.67 0.3 0.98 10.25 15.48 5.23

7 Babu Bazar Branch 8.59 0.81 0.25 1.05 9.65 4.67 -4.98

8 Moulavibazar Branch (Dhaka)

5.94 1.21 0.4 1.62 7.55 10.72 3.17

9 Bogra Branch 8.28 1.19 0.4 1.59 9.87 4.27 -5.6

10 Sirajgonj Branch 8.84 0.96 0.27 1.23 10.07 12.41 2.34

11 Begum Rokeya Sarani Branch

9.06 0.54 0.18 0.72 9.78 6.19 -3.59

12 Khatungonj Branch 8.35 2.24 0.62 2.86 11.21 12.13 0.92

Business AnalysisCost of Fund of the Bank for the year 2014 was 7.66% while total overhead cost was 1.83%. Earning Yield was 12.57% and �nally accumulated a spread of 3.08%. Following are the Branch-wise details of cost and yield analysis of SIBL for the year 2014:

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Sl. No.

Branch NameCost

of Fund

Employ-ee Cost

Over-head Cost

Total Overhead

Cost


Earning Yield

Spread

(1) (2) (3) (4) (5) 6=(4+5) 7=(3+6) (8) 9=(8-7)

13 Panthapath Branch 7.4 0.8 0.36 1.15 8.56 14.45 5.89

14 Chandaikona Branch 8.35 2.05 0.67 2.72 11.07 15.94 4.87

15 Sonargaon Branch 6.51 0.53 0.27 0.8 7.31 15.96 8.65

16 Foreign Exchange Branch 7.15 0.83 0.24 1.07 8.22 12.17 3.95

17 Halishahar Branch 8.28 1.36 0.35 1.71 9.99 14.82 4.83

18 Hasnabad Branch 6.75 1.29 0.31 1.59 8.35 16.73 8.38

19 Dhanmondi Branch 8.77 0.66 0.31 0.97 9.74 14.45 4.71

20 Nawabpur Road Branch 8.37 0.92 0.15 1.07 9.44 16.01 6.57

21 Jubilee Road Branch 8.81 1.34 0.46 1.8 10.61 14.6 3.99

22 Uttara Branch 9.18 0.63 0.15 0.79 9.96 12.08 2.12

23 Fatulla Branch 6.75 1.03 0.32 1.34 8.1 16.76 8.66

24 Mirpur Branch 8.26 0.56 0.19 0.75 9.01 15.42 6.41

25 Banani Branch 8.31 0.78 0.34 1.12 9.43 14.32 4.89

26 Elliotganj Branch 5.33 1.18 0.47 1.65 6.98 14.63 7.65

27 Chowmuhoni Branch 6.99 1.6 0.73 2.33 9.32 11.72 2.4

28 Savar Branch 8.25 2 0.62 2.61 10.87 16.44 5.57

29 Mohammadpur KTM Branch 8.7 1.06 0.28 1.34 10.04 16.69 6.65

30 Dania Rasulpur Branch 8.34 1.24 0.5 1.74 10.08 13.71 3.63

31 Lohagara Branch 8.17 2.07 1.03 3.1 11.27 15.29 4.02

32 South Surma Branch 8.94 1.23 0.53 1.76 10.7 15.36 4.66

33 Comilla Branch 7.8 1.59 0.73 2.32 10.12 11.4 1.28

34 Gopaldi Branch 7.75 1.11 0.51 1.62 9.37 15.74 6.37

35 Chandpur Branch 7.96 1.04 0.43 1.47 9.43 15.86 6.43

36 Patherhat Branch 8.7 0.81 0.5 1.3 10.01 15.32 5.31

37 Cox’s Bazar Branch 7.22 1.83 0.74 2.57 9.79 13.74 3.95

38 Nanupur Branch 7.84 0.72 0.33 1.05 8.89 15.07 6.18

39 Rampura Branch 9.65 1.23 0.38 1.61 11.26 15.16 3.9

40 GEC Moor Branch 8.65 1.26 0.76 2.01 10.67 10.46 -0.21

41 Paikgacha Branch 8.16 1.4 0.67 2.07 10.23 14.72 4.49

42 Keranigonj Branch 6.11 1.61 0.87 2.48 8.59 16.41 7.82

43 Madabdi SME/Krishi Branch 8.9 1.58 0.57 2.15 11.05 15.46 4.41

44 Kachua SME/Krishi Branch 6.69 1.82 0.8 2.61 9.31 17.24 7.93

45 Monirampur SME/Krishi Branch

7.14 2.19 0.96 3.15 10.29 16.92 6.63

46 Noapara Branch 8.66 1.71 0.58 2.29 10.95 15.53 4.58

47 Fakirhat SME/Krishi Branch 7.64 3.2 1.7 4.9 12.54 15.28 2.74

48 Hathazari SME/Krishi Branch 8.13 2.46 0.83 3.29 11.42 16.17 4.75

49 Baryerhat Branch 7.66 1.18 0.59 1.77 9.43 11.95 2.52

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Sl. No.

Branch NameCost

of Fund

Employ-ee Cost

Over-head Cost

Total Overhead

Cost


Earning Yield

Spread

(1) (2) (3) (4) (5) 6=(4+5) 7=(3+6) (8) 9=(8-7)

50 Gobindagonj SME/Krishi Branch

7.76 1.95 0.89 2.83 10.6 16.28 5.68

51 Dinajpur Branch 8.5 2.28 1 3.27 11.78 15.55 3.77

52 Islampur Branch 8.07 1.52 0.56 2.08 10.15 15.88 5.73

53 New Eskaton Branch 6.94 0.74 0.41 1.16 8.09 15.74 7.65

54 Bhulta SME/Krishi Branch 9.34 0.33 0.13 0.46 9.8 11.3 1.5

55 Hajigonj Branch 7.78 1.97 0.8 2.77 10.55 16.13 5.58

56 Shahjadpur SME/Krishi Branch

8.04 1.76 0.73 2.5 10.53 16.15 5.62

57 Galimpur SME/Krishi Branch 7.4 1.59 0.67 2.26 9.66 15.3 5.64

58 Bibirhat SME/Krishi Branch 8.09 0.93 0.45 1.38 9.47 16.61 7.14

59 Dhamrai SME/Krishi Branch 7.3 1.05 0.43 1.48 8.78 17.04 8.26

60 Dupchanchia Branch 7.55 1.96 0.89 2.85 10.4 16.44 6.04

61 Chawkbazar Branch 8.97 1.91 0.85 2.76 11.73 16.87 5.14

62 Jessore Branch 9.26 2.63 0.91 3.54 12.8 15.73 2.93

63 Satkhira Branch 8.5 2.06 1.13 3.19 11.69 15.71 4.02

64 Narayangonj Branch 8.65 1.44 0.81 2.25 10.9 10.86 -0.04

65 Naogaon Branch 8.67 2.09 1.07 3.16 11.83 16.38 4.55

66 Rangpur Branch 8.28 2.93 1.92 4.85 13.13 16.62 3.49

67 Feni Branch 7.83 1.56 1.12 2.68 10.51 16.64 6.13

68 Mohakhali Branch 8.91 1.02 0.64 1.66 10.57 16.67 6.1

69 Bangshal Branch 8.7 1.75 0.79 2.54 11.24 8.06 -3.18

70 Banasree Branch 7.38 1.54 0.71 2.25 9.63 15.9 6.27

71 Barisal Branch 8.48 2.73 1.31 4.04 12.52 15.91 3.39

72 Tongi Branch 9.21 1.59 0.82 2.41 11.62 15.49 3.87

73 Pabna Branch 8.84 1.96 0.83 2.79 11.63 15.94 4.31

74 Alanker Moor Branch 7.66 2.04 1.16 3.21 10.86 15.7 4.84

75 Bashudhara Branch 6.34 0.69 0.8 1.48 7.83 16.06 8.23

76 Homna Branch 6.59 0.93 0.66 1.58 8.18 16.84 8.66

77 Shah Mohsen Aowlia Branch 6.69 2.13 1.38 3.5 10.2 16.54 6.34

78 Dewanhat Branch 7.3 3.03 1.93 4.96 12.26 15.74 3.48

79 Demra Branch 6.89 1.79 1.19 2.98 9.87 16.82 6.95

80 Moulvibazar Branch (Sylhet) 8.71 3.53 2.2 5.73 14.44 12.86 -1.58

81 Fenchuganj Branch 8.19 2.94 2.13 5.08 13.26 14.91 1.65

82 Satarkul Road Branch 6.98 1.66 1.12 2.78 9.76 15.55 5.79

83 Roazarhat Branch 7.21 2.1 1.35 3.46 10.66 17.05 6.39

84 Harirampur Union Branch 8.04 2.13 1.24 3.37 11.41 15.67 4.26

85 Kawran Bazar Branch 9.34 1.13 1.43 2.57 11.9 15.11 3.21

86 Bagerhat Branch 8.49 4.73 2.29 7.03 15.51 15.42 -0.09

87 Akhaura Branch 8.38 2.55 1.72 4.27 12.65 16.7 4.05

88 Patkelghata Branch 7.58 2.93 2.34 5.27 12.85 16.56 3.71

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Sl. No.

Branch NameCost

of Fund

Employ-ee Cost

Over-head Cost

Total Overhead

Cost


Earning Yield

Spread

(1) (2) (3) (4) (5) 6=(4+5) 7=(3+6) (8) 9=(8-7)

89 Mouchak Branch 8.94 2.17 1.67 3.84 12.78 14.29 1.51

90 Aturar Depo Branch 7.01 3.63 2.13 5.76 12.77 14.11 1.34

91 Chowgacha Branch 6 4.54 2.87 7.42 13.41 14.03 0.62

92 College Road Branch 6.51 2.62 1.74 4.36 10.87 15.35 4.48

93 Maijdee Branch 6.85 4.22 3.95 8.17 15.02 15.41 0.39

94 Mymensingh Branch 8.6 6.85 5.91 12.76 21.36 15.78 -5.58

95 Panchdona Branch 2.89 12.2 10.61 22.82 25.7 8.27 -17.43

96 Gausia Branch (Dhaka) 4.76 1.93 1.45 3.37 8.14 8.63 0.49

97 Sayedpur Branch 1.06 3.02 1.11 4.14 5.19 9.69 4.5

98 Laxmipur Branch 0.38 26.1 14.15 40.24 40.63 -40.63

99 Mawna Branch 0.33 - 0.33 -0.33

100 Kankirhat Branch

SIBL 7.66 1.2 0.63 1.83 9.49 12.57 3.08

Sl. No. Particulars

Year 2014 Year 2013

Amount % of total Amount % of total

1 Total Revenue / Operating Income:

i) Investment Income 13,015.14 82.80% 12,262.06 80.74%

iii) Pro�t from Bank Deposit 928.13 5.90% 1,367.36 9.00%

ii) Investment Income shares & securities 296.95 1.89% 325.47 2.14%

a) Sub-total : Funded Income (i+ii) 14,240.21 90.60% 13,954.89 91.89%

iii) Commission 567.54 3.61% 555.28 3.66%

iv) Exchange Gain 620.83 3.95% 471.29 3.10%

v) Other Income 289.49 1.84% 204.70 1.35%

b) Sub-total: Non-Funded Income (iii+iv+v) 1,477.86 9.40% 1,231.27 8.11%

c) Total: Operating Income {1(a) + 1(b)} 15,718.08 100.00% 15,186.16 100.00%

2 Operating Expenditure:

i) Exp. against Customers’ Deposit 8,344.80 71.00% 8,932.54 72.67%

ii) Exp. for Bank Deposit 662.40 5.64% 774.33 6.30%

a) Sub-total: Pro�t Expenses (i+ii) 9,007.20 76.63% 9,706.87 78.97%

iii) Salary & Allowances 1,665.17 14.17% 1,514.11 12.32%

iv) Other Operating Expenses 1,081.43 9.20% 1,071.12 8.71%

b) Sub-total: Administrative Expenses (iii+iv) 2,746.60 23.37% 2,585.23 21.03%

c) Total: Operating Expenditure {2(a) + 2(b)} 11,753.80 100.00% 12,292.10 100.00%

3 Operating Pro�t/ (Loss) {1(c ) - 2 (c )} 3,964.28 - 2,894.06 -

Growth(%) Growth(%)

4 Profit before tax 3,307.52 63.36% 2,024.66 (26.32%)

5 Profit after tax 1903.72 56.02% 1220.20 (15.33%)

6 EPS (Taka) 2.71 55.75% 1.74 (22.67%)

Income Statement Analysis Figure in million Taka

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Analysis Dec ’14 Sep ’14 Jun ’14 Mar ’14 Dec ’13

Pro�tability Ratios:

Return on Average Assets (Net Pro�t before tax/Average Assets) X 100

2.36% 1.76% 2.07% 2.03% 1.67%

Return on Equity (Net pro�t after tax/Average Equity) X 100 15.68% 8.54% 11.24% 12.84% 11.01%

Earning per share ( EPS) (Taka) 2.71 1.00 0.88 0.51 1.74

Ef�ciency/Activity Ratios:

Net Investment Margin (NIM) (Net Invest. Income/Earning Assets) X 100

3.86% 3.65% 3.52% 3.17% 3.68%

Earning Assets/Total Asset 83.29% 86.40% 84.40% 83.43% 84.17%

Ef�ciency Ratio (Total Overhead cost/ Total operating income) X 100

40.93% 43.70% 44.79% 44.49% 46.85%

Overhead Ratio (Total Overhead cost/Total Assets) X 100 1.79% 1.79% 1.85% 1.69% 2.04%

Effective Average Cost of Deposit 7.66% 8.14% 8.36% 8.51% 9.04%

Cost of Fund 9.49% 9.92% 10.08% 10.03% 11.10%

Effective Average Earning Yield 12.57% 12.41% 12.50% 12.26% 13.84%

Liquidity Ratios:

Investment Deposit(client) Ratio (ID Ratio) (Investment/Client Deposit) X 100

89.52% 89.83% 87.00% 88.20% 86.88%

Liquid Assets Ratio (Liquid Assets/Total Assets) X 100 15.90% 15.21% 16.55% 16.61% 16.59%

Short Term Maturity Ratio (Short Term Liability/Short Term Assets) X 100

94.27% 101.09% 104.25% 100.31% 100.70%

Medium Term Funding Ratio (Medium Term Funding Liability/MTF Assets) X 100

86.58% 83.86% 83.19% 81.41% 85.45%

Maximum Cumuliative Out�ow (MCO) 13.28% 12.92% 14.03% 13.83% 13.83%

Stable Fund Ratio (Saving Deposit/Total Client Deposit) X 100

10.18% 10.33% 6.58% 7.65% 6.71%

Dependency Ratio (Bank Deposit & Borrowings/T. Deposit & borrowing) X 100

16.56% 13.67% 10.13% 10.47% 10.13%

Snap Liquidity Ratio (Liquid Assets/ Total External Liabilities)

17.26% 16.44% 17.94% 18.22% 18.18%

Short Term Borrowings/ Liquid Assets 25.16% 24.48% 21.88% 20.39% 22.37%

Volatile Deposits/Total Assets 4.14% 4.63% 4.41% 4.20% 3.95%

Capital Adequacy Ratios:

Tire-I Ratio 9.63% 8.78% 8.89% 9.49% 10.01%

Tire-II Ratio 1.73% 1.75% 1.62% 1.65% 1.63%

Risk Weighted Capital Adequacy Ratio (RWCAR) 11.36% 10.53% 10.51% 11.14% 11.64%

Shareholders’ Equity to Total Deposit & Borrowings (Equity/Deposit & borrowings) X 100

9.29% 8.78% 8.99% 10.47% 10.38%

Some Inportant Ratio AnalysisTo understand the Bank’s trend, some important ratio analyses are tabulated below:

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Liquidity Position AnalysisDuring the year under review, SIBL had a net cash in�ow (consolidated) of Taka (3468.27) million as stated in the Cash Flow Statements as on 31st December, 2014 which is noted as under:

Figure in million Taka

Particulars Year 2014 Year 2013

Net Cash �ow from Operating activities 3,065.65 (1,798.39)

Net Cash �ow from Investing activities (203.62) (562.92)

Net Cash �ow from Financing activities (606.23) (318.74)

Net Increase / decrease in Cash & Cash equivalents (3,468.27) (2,680.05)

Opening Cash & Cash Equivalents 21,037.65 23,717.71

Closing Cash & Cash Equivalents 24,505.92 21,037.65

Analysis Dec ’14 Sep ’14 Jun ’14 Mar ’14 Dec ’13

Internal Capital Generation Ratio (Net pro�t after-tax/Equity) X 100

15.68% 8.60% 11.35% 12.64% 11.01%

Asset Quality Ratio:

Ratio of Classi�ed Investment (Classi�ed Investment/Net Investment) X 100

4.56% 4.66% 5.04% 5.29% 5.35%

Ratio of SMA Investment (SMA Investment/Net Investment) X 100

0.03% 0.95% 0.42% 0.45% 0.56%

Gross NPI Ratio (Classi�ed Investment - Pro�t Suspense/Investment - Provision) X 100

3.92% 4.20% 4.44% 5.02% 5.59%

Net NPI Ratio (Classi�ed Investment - Pro�t Suspense - Provision/Investment - Provision - Suspense) X 100

2.45% 1.25% 1.66% 2.23% 2.25%

Gross NPI Coverage Ratio (Total Provision/Classi�ed Investment - Pro�t Suspense) X 100

72.92% 57.48% 62.83% 55.61% 59.74%

The major components of net cash �ows from operating activities are operating pro�t by eliminating the effect of depreciation and provisions. Net cash �ow was negative due to increase in General Investment clients. Due to acquisition of �xed assets and as buying was greater than the selling of Shares or Securities, the net cash �ow under this head is negative. Besides that, due to payment of 12% cash dividend for the year 2013, the Net cash �ow from �nancing activities was negative. However, cash balances along with Bangladesh Bank and agent bank supported the cash position effectively. We have analyzed

the cash �ow statements of the Bank for the year ended on 31st December, 2014 in comparison with the liquidity statements to test the liquidity position. The liquidity statements of the Bank show that the Bank has been maintaining an effective maturity pro�le of its total assets and liabilities in short term and long term in a structured way. We found positive gap in the liquidity pro�le for 1 month, 1-3 months, 3-12 months, 1-5 years and more than 5 years. The liquidity gap maintained by the Bank is satisfactory.

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• Changes in government policy issues

• Increase in corporate tax rate

• Increase in CRR and SLR of the banks

• Withdrawal of incentive given to some thrust sectors which may make the projects slow moving

• Directives to reduce the lending rates to �nance essential items

• Increase in provisioning requirement may reduce the ROA and ROE

• Reducing the margin ratio for investment accounts

• Volatility in interest rate

• Volatility in capital market arising from speculations

• Compliance issues raised by the international forums which are likely to affect the export growth

• Rise in international prices of essentials which may result to volatility in Foreign Exchange Market

• International embargo/unrest may affect remittances and trade.

Nevertheless, the successes of SIBL in 2014 clearly af�rms that this Bank is ready to accept challenges of the future. In sha Allah, SIBL’s momentum of growth of business and pro�tability will be maintained de�nitely in 2015 and the years to come.

Ameen.

Md. Sa�qur RahmanManaging Director

Outlook 2015

From the beginning of the year 2015, due to the unrest in national politics, capital market, and above all the banking scandal, the overall economic condition of the country looks unstable. Despite such limitation, �nancial sectors still expect to record a steady growth. Operating pro�t of the 1st quarter of Social Islami Bank Limited is expected to keep growing. To make the year 2015 another success, SIBL is ready to accept the challenges of 2015 with new visionary zeal to achieve the common objectives of the Bank and, hence, the year 2015 will de�nitely be a challenge for every individual of SIBL. Considering the stands and commitments towards stakeholders, SIBL has prepared �nancial budget for the year 2015, which is realistic and challenging. The Business Target for the year 2015 is featured by setting of (i) Client Deposit - Tk. 150,000 million (ii) Investment - Taka 135,000 million (iii) Foreign Exchange Business - Taka 220,000 million & (iv) Operating Pro�t - Taka 6,000 million. To achieve success in the year, SIBL has undertaken the following short-term strategies side by side the mid-term and long-term strategies:

• To strengthen the automation procedures of the Bank

• To increase ATM facilities

• To open new Branches in important urban/ rural areas of Bangladesh

• To increase number of AD Branches

• To enhance the CSR activities in line with the Bank’s CSR policy

• To undertake special recovery drive

• To conduct special programmes for business like ‘Seba-Mash’

• To explore the business opportunities in SME investments

• To present innovative and new deposit and investment products to the customers.

Some factors may cause the actual results to differ and some may signi�cantly cause to deviate from the outlook 2015. Some of the factors that may affect the business environment are given below:

• Changes in the general economic condition resulting from natural calamities and political disturbances

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conditions of the Bank Company Act, Bangladesh Bank guidelines, Corporate Governance guidelines by Bangladesh Securities and Exchange Commission have been properly addressed. Internal control system, managing of core risks and Bank’s process for monitoring compliance with laws and regulations and codes of business conduct were adequate.

The Board of Directors of the Bank declares that it has actively and diligently discharged its duties and responsibilities to establish a sound internal control system and to ensure good corporate governance.

On behalf of the Board of Directors


The Board of Directors of Social Islami Bank Limited is very keen to establish and maintain a sound and effective Internal Control System and good governance in every sphere of the bank and accordingly has established broad business strategies, adopted signi�cant policies for internal control and risk management and implemented risk based internal audits as per ‘section 15 kha of Bank Company (amended) Act 2013, for ensuring that the Bank is appropriately and effectively managed and controlled.

During the year under review, the Board has reviewed the policies and procedures of various aspects of businesses in order to establish an effective internal control system, which the Board thinks adequate and appropriate for achieving sustainable growth.

The Board of Directors monitors the adequacy and effectiveness of Internal Control systems through the establishment of Audit Committee and the Committee has regularly reviewed and assessed the arrangement adequacy made by management and corrective measures taken by management relating to fraud-forgery and de�ciencies in internal controls. Internal Control & Compliance Division (ICCD) of the bank continuously inspects the operational aspect of the bank and reports deviations and all such �ndings along with compliance status are placed by the Management before the Board of Directors and regulators on a timely basis and thus performed all other functions relating to Internal Control Systems of the Bank.

The Board of Directors has reviewed the control procedures for ensuring – (i) safeguarding the Bank’s asset (ii) prevention and detection of fraud and error (iii) adequacy and completeness of accounting records (iv) timely preparation of �nancial information and (v) the ef�cient management of core risk.The Audit Committee has ensured that all the

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Report of the Board of DirectorsAct good and do good to serve better being the motto, SIBL and those in the operation always strive their best with the rules of Shariah for achieving as much security and benefit as possible for esteemed Customers.

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Dear respected Shareholders,It is my great pleasure to welcome you all on behalf of the Board of Directors to the 20th Annual General Meeting of Social Islami Bank Limited and to present before you the Directors’ Report along with the audited �nancial statements as on 31st December 2014 for your kind consideration. I put on record my thanks and gratitude to you for your presence on this big shareholders’ day. It is worthwhile to place before you the �nancial position of the bank in the backdrop of global economic scenario- the changes that have taken place around the world and how Bangladesh experienced the same and various functional and administrative aspects during the year 2014, including that of Bangladesh economy.

Global Economic OutlookThe global economic growth has been somewhat disappointing. According to the IMF’s latest World Economic Outlook, (WEO, October 2014), global growth in the �rst half of 2014 fell short from what was anticipated earlier in April 2014. Due to this sluggish performance, the IMF revised its projection for global economic growth for 2014, from 3.7 percent to 3.3 percent. The growth for 2015 is projected at 3.8 percent. In the advanced economies, growth was expected to be 1.8 percent in 2014, and rise to 2.3 percent in 2015. However, in the emerging markets and developing economies, growth was expected to be 4.4 percent in 2014 and 5.0 percent in 2015. The projection of global economic growth has been downsized by IMF for observed weak economic performance, particularly in the United States, and a less promising outlook in a number of emerging markets. Growth rate of the United States was forecast to remain unchanged at 2.2 percent in 2014, and expected to rise to 3.1 percent in 2015. In euro area the economic performance is projected to be even more disappointing. The growth was projected to be 0.8 percent in 2014 and 1.3 percent in 2015. The economic growth in Japan is likely to be affected by consumption tax hike; as a result, growth was projected to be 0.9 percent in 2014 and decline further to 0.8 percent in 2015.

Growth in emerging markets and developing economies is projected to be modest in 2015, supported mainly by stronger domestic demand.

Growth in these economies was projected to decline to 4.4 percent in 2014 from 4.7 percent in 2013 and then increase to 5.0 percent in 2015. Growth in China was projected to be 7.4 percent in 2014 due to some targeted policy measures to support activity and then decline to 7.1 percent in 2015. Growth in India is expected to pick up gradually after the postelection recovery in business environment, balancing the effect of an unfavorable monsoon on agricultural growth. In�ation in advanced economies has generally remained below the central bank targets, indicating a continued weakening of economic activities in these economies. Consumer prices in these economies were anticipated to rise to 1.6 percent in 2014 and 1.8 percent in 2015 from 1.4 percent in 2013. In�ation has remained more or less stable in emerging markets and developing economies. It was expected to decline from 5.9 percent in 2013 to 5.5 percent in 2014 and then rise to 5.6 percent in 2015 in these economies.

World trade volume growth is projected to rise from 3.0 percent in 2013 to 3.8 percent in 2014 and then increase further to 5.0 percent in 2015. The growth rate of imports for advanced economies was expected to increase from 1.4 percent in 2013 to 3.7 percent in 2014, to 4.3 percent in 2015. However, in emerging markets and developing economies, growth rate of imports was projected to decline from 5.3 percent in 2013 to 4.4 percent in 2014, and then rise to 6.1 percent in 2015. Exports of advanced economies were expected to grow by 3.6 percent in 2014 and by 4.5 percent in 2015. The same growth in emerging markets and developing economies was expected to be 3.9 and 5.8 percent in 2014 and 2015 respectively.

The global �nancial system is undergoing through a number of challenging transitions in its way to greater stability. According to the Global Financial Stability Report (GFSR) of October 2014, the global economic recovery continues to rely heavily on accommodative monetary policies in advanced economies even after six years of global economic and �nancial crisis.The uncertainties in the Middle East, however, may continue to persist and oil prices are therefore likely

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to remain volatile. On the other hand global food prices have also declined by about 10 percent over the past six months. The FAO forecast suggests that global food prices are expected to remain reasonably stable over the next six months as the overall stock to utilization ratio is higher than that one year earlier.

Bangladesh Economy ReviewThe prospects of the Bangladesh economy over the near and medium terms are reasonably good. The strong domestic demand base, gradually improving investment climate, decreasing uncertainty and reduced in�ation are expected to lead to better economic performance. GDP growth is expected to pick up between 6.2 and 6.4 percent in FY15 keeping in�ation at a reasonable level 6.50% from current rate 6.99% provided that macroeconomic policies must continue to support sustained expansion in agriculture and industry together with large investment in infrastructure while striving to enhance government revenue collection. This would also require a monetary program framework that limits reserve money growth to 15.9 percent and broad money growth to 16.5 percent by June 2015. The ceiling for private sector credit growth of 15.5 percent has been kept well in line with economic growth targets

The 12-month average in�ation based on the consumer price index (CPI) maintained a declining trend during the last six months and came down to 6.99 percent in December 2014 from 7.28 percent in July 2014 mainly because of declining food prices. This in�ation was driven 68 percent by food and 32 percent by nonfood items. Average food in�ation moderated to 7.92 percent in December 2014 from 8.55 percent in July 2014 while average nonfood in�ation edged up to 5.60 percent from 5.41 percent over the same time points.

Political turbulence and lack of adequate infrastructure and energy are the major impediments to investment and foreign investment in particular. Despite these limitations, our investment-GDP ratio is 29 percent, which is close to India and Sri Lanka and almost double than Pakistan. The investment-GDP ratio has to be raised to almost 35 percent to

earn growth rates between 7 and 8 percent if the incremental capital output ratio (ICOR) is assumed to lie between 4.5 -5.0. Simultaneously, we need to improve our productivity gains so we may get even higher growth rate with the projected level of the investment-GDP ratio

In FY2015, Annual development program (ADP) expenditure budget is set at TK 803.2 Seemingly ADP expenditure during July-November FY2015 increases by 21.3 percent compared to that of July-NoveFY2014; however, a closer look does not miss the fact that during July-November FY2015, ADP expenditure appears extremely low (Taka 168.44 billion which is only 20.9 percent of annual ADP budget). The ef�cient use of the remaining 79 percent of ADP budget in rest of the months remains a big question.

Bangladesh is in a better position than India, Pakistan and Sri Lanka in terms of the debt-to-GDP ratio. The total debt-GDP ratio of Bangladesh decreased from 50.7 percent in FY1994 to 28.6 percent in FY2014. On the other hand, debt remains above 60.7 percent of GDP in India, Pakistan, and Sri Lanka. The Debt-GDP ratio of Bangladesh fell drastically compared to others as its external debt-GDP ratio decreased to 13.6 percent in FY2014 from 43.3 percent in FY1994. In Bangladesh, government �nancing became more dependent on domestic debt as the debt-GDP ratio gradually rose from 7.4 percent in FY1994 to 15.0 percent in FY2014.

The overall net borrowing from the banking system is the sum of borrowing by the Government from Bangladesh Bank and scheduled banks. The �gure also illustrates how this pattern has changed. In the �rst half of FY2014, government made a net repayment to Bangladesh Bank of Taka 62 billion while borrowing Taka 79 billion from scheduled banks.

The current account balance (CAB) recorded a de�cit of USD 1316 million during July-November 2014 compared to a surplus of USD 1127 million during the same period of the preceding �scal. Foreign direct investment in the �rst �ve months of FY2015 stood at USD 585 million compared

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with USD553 million in the same period of FY2014 - the pattern in FY2015 is likely to be dominated by reinvestment from existing �rms such as Grameenphone, HSBC, Robi while new foreign �rm entry is likely to be limited given infrastructural constraints and persistent uncertainty in politics. Medium and long-term loan disbursements in the �rst �ve months of FY2015 are USD748 million relative to USD641 million during the corresponding period of FY2014. Improved external balances are re�ected in the accumulation of international reserves to over USD22 billion at the end of the �rst half of FY2015, suf�cient to cover 5.5 months of projected imports.

In order to stabilize foreign exchange rate (Taka/USD), Bangladesh Bank continues its participation in the domestic foreign exchange market as required, with a net purchase of foreign currencies amounting to USD 986.45 million during the �rst half of FY2015. Consequently, the foreign exchange market remained stable during the �rst half of FY2015.

In FY2015, total revenue target is set at Taka1829.5 billion. Of this target, Taka 1497.2 billion is estimated to be coming from NBR revenue. During the �rst �ve months of current �scal year, NBR revenue reaches Taka 477.3 billion (31.9 percent of yearly target), which is 13.9 percent higher than that of the same period of FY2014. Even though revenue collection from VAT (34.2 percent of yearly target), and custom duty (39.1 percent of annual target) is satisfactory, revenue collection from income tax (26.1 percent of yearly budget) is lagging behind.

Export receipts boosted up in December 2014 by 17.65 percent over the previous month, recording1.56 percent growth in July-December 2014 (offsetting the negative growth up to October) compared to the same period of the previous year. Import payments based on shipment data boosted up by 16.64 percent during July-November 2014 over the corresponding period of the previous year. Import L/C opening data (rose by 14.77 percent during July-November 2014) also suggest that the import payments will have a momentum in the second half of FY2015.Remittance growth started gaining in the second half of FY2014 and became positive in the �rst half

of FY2015. Remittance growth in FY2014 became negative of 1.6 percent against larger growth of 12.6 percent in FY2013 though this growth was faster to 5.6 percent during the second half of the year compared to the corresponding period of FY2013.However, remittance growth in the �rst half of FY2015 is recovering to normalcy and trended up, recording a solid growth of 10.30 percent. Actually, the slow-down in remittance in FY2014 was primarily a function of a 36 percent drop in the number of workers migrating in FY2013 due to a host of factors like change in Akama particularly in Soudi Arabia, G-G agreement regarding manpower migration especially in Malaysia, political uncertainty in Bangladesh as well.

Bangladesh Banking Sector ReviewPrivate sector credit registered 12.7 percent growth at the end of November 2014 compared to the program growth of 14.0 percent at the end of December 2014. Political uncertainty and infrastructural bottlenecks are holding the pace of expected private investment back. Hence, the private sector credit growth remained below program target. Credit in transport sector registered a remarkable growth of 9.1 percent in the �rst quarter of FY2015 against the negative growth of 4.0 percent in the �rst quarter of FY2014. Agriculture including �shing and forestry experiences an impressive growth of 18.49 percent in the �rst quarter of FY2015 compared with the same period of FY2013. Moreover, advances to term loans including working capital (excluding trade �nance) also record 15.85 percent growth in the �rst quarter of FY2015. Disbursement of industrial term loans amounts to Taka 12809.42 crore in the �rst quarter of FY2015 compared to Taka 8880.79 crore in the �rst quarter of FY2014, recording a remarkable growth of 44.24 percent over the corresponding period of the last year. Out of the total disbursement, loans to large-scale industries show 61.06 percent growth followed by medium scale industries growth by 14.86 percent while small scale and cottage industries experienced surprisingly negative growth of 25.92 percent. While loans to SME appear to be more productive, its share in total loan by banks and non-bank �nancial institutions has increases to 23.73 percent in the �rst quarter of FY2015 from 22.95 percent in the �rst

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quarter of FY2014. Moreover, loans to SME have increased by 15.67 percent at the end of September 2014 over the same period a year earlier.

Return on assets (ROA) was declining since December 2010 from 1.8 percent to 0.6 percent in June 2013.The ROA increased to 0.9 percent in December 2013 mainly because of the temporary relaxation of loan rescheduling policy from December 2013 to June 2014 (required provision for bad debt for the year 2013 was only Taka 46.1 billion, compared to Taka 86.4 billion for 2012). The ratio declined again to 0.61 percent at the end of June 2014 owing to maintaining higher provision for the increased amount of nonperforming loans and the net losses made by state commercial banks (SCB). However, it is still near to the Basel II standard of 0.6 percent ROA.

Capital adequacy ratio (CAR) decreased to 10.6 percent at the end of September 2014 from 11.5 percent in December 2013 though surpassing the Basel accord of the minimum 10 percent capital adequacy ratio. Data show that while private commercial banks (PCB) and foreign commercial banks (FCB) are successfully maintaining the prevailing standard since December 2010, SCBs and specialized banks (SB) are still struggling to ful�ll this regulatory requirement.

The increasing trend in gross non-performing loans of the banking sector started after December 2013 and continued during the �rst three quarters of 2014. The ratio increased to 11.6 percent at the end of September 2014 from 8.9 percent at the end of December 2013. This rise happened because of implementation of the new guideline for loan classi�cation and rescheduling after June 2014. In addition, the lack of pro�tability due to the uncertainties emanating from political factors contributed to this increased volume of nonperforming loans.

The credit/deposit ratio of the scheduled banks, excluding the specialized banks was 0.79 at the end of June 2014 compared to 0.78 at the end of June 2013. Increasing credit to deposit ratio indicates higher credit growth than deposit growth.

The Cash Reserve Requirement (CRR) for the scheduled banks with the Bangladesh Bank has been increased by 50 basis points to 6.50 percent of their total demand and time liabilities with effect from 24 June 2014. It may be noted that banks are required to maintain CRR at the rate of 6.50 percent on average on bi-weekly basis provided that the CRR would not be less than 6.00 percent in any day.

The SLR (Statutory Liquidity Ratio) requirements for the conventional Bank’s are 13.0 percent of bank’s total demand and time liabilities, and for the shariah based Islamic banks, this rate shall not be less than 5.5 percent. This has been in effect from 1 February 2014.

The bank rate remained unchanged at 5.0 percent in FY14. This rate has been effective from 6 November 2003.

The weighted average interest rate on lending declined to 13.10 percent in FY14 from 13.67 percent in FY13 though policy rates remained unchanged as a result of fall in demand for credit and continued moral persuasion by BB. The weighted average deposit interest rate came down to 7.79 percent in FY14 compared to 8.54 percent in FY13. The large excess liquidity in the banking system contributed to lower the deposit rate. The trend of the spreads between lending and deposit rates was above 5 percent from FY10 to FY14. The spread stood at 5.31 percent in FY14 compared with 5.13 percent in the preceding year.

In December 2013, CAMELS rating was accomplished under the revised guidelines of Bangladesh Bank and no bank has been rated 1 or Strong; the rating of 28 banks was 2 or satisfactory; rating of 12 banks were 3 or fair; 6 banks was rated 4 or marginal and 1 bank received 5 or unsatisfactory rating.

Islamic banking systems have been operating in Bangladesh since 1983 alongside the conventional interest based banks. In FY14 out of 56 banks in Bangladesh, 8 PCBs operated as full-�edged Islamic banks, and 16 conventional banks (including 3 FCBs) were involved in Islamic banking through

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Islamic banking branches. The Islamic banking industry continued to show strong growth since its inception in 1983 to December 2012, as re�ected by the increased market share of the Islamic banking industry in terms of assets, �nancing and deposits of the total banking system. However, the performances of Islamic banks were quite subdued in 2013 which might be attributed to vulnerable business environment in 2013. Total deposits of the Islamic banks and Islamic banking branches of the conventional banks stood at Taka 1178.9 billion at the end of December 2013 which was 18.8 percent of deposits of the total banking system, lower than that in 2012. Total credit of the Islamic banks and the Islamic banking branches of the conventional banks stood at Taka 1003.8 billion at the end of December 2013 which was 21.6 percent of credit of the total banking system of the country.

Capital Market PerformanceHistorical data on the general index of Dhaka Stock Exchange (DSE) shows that it started to decline from the highest peak of 8602.4 in November 2010 to 4342.3 at the end of July 2013. However, Dhaka Stock Exchange introduced the DSE Broad (DSEX) index instead of the DSE general index from August 2013. As per the index, it stood at 4865.0 at the end of December 2014, which is 8.6 percent higher than that at the end of June 2014 and 14.7 percent higher than that at end of December 2013. Although the ratio of market capitalization to GDP once rose to over 30 percent in the middle of 2010, it is regarded as the highest stage of the bubble before it goes burst. However, a sign of steady development in the capital market is evident since early 2013.

Monetary PolicyAs on date of report, Monetary Policy Statement (MPS) January-June 2015 (for the the second half of FY 2015) has been declared by Bangladesh Bank. Highlights of the MPS are:

• Despite some upside risks, in�ation will be kept under control to reach the target of 6.5 percent by June 2015.

• The economy is poised to achieve a respectable growth rate between 6.5 and 6.8 percent in the �scal year 2015 if political stability prevails. The

bottlenecks of infrastructure and energy must be addressed promptly.

• Over the last 20 years Bangladesh evidenced the highest amount of stability in in�ation and economic growth in the South Asian region that includes India, Pakistan and Sri Lanka.

• Bangladesh’s growth performance is the second best (5.73 percent) after India (6.77 percent) and its in�ation is the lowest (6.45 percent) in the region over the last two decades.

• Bangladesh Bank will pursue a monetary policy of prudence to strike the balance between objectives of moderate in�ation and respectable growth. Money supply and policy rates will be controlled accordingly while opening further avenues to promote investment through greater �nancial inclusion.

• Banking governance will be up scaled further to clamp down on loan delinquencies.

• While the cases of credit worthy borrowers will be reviewed, habitual defaulters will face lawful consequences.

• Bangladesh Bank will endeavor to iron out excessive �uctuations in the exchange rate which will remain largely market based.

• The central bank will continue to maintain comfortable amount of foreign currency reserves to cover imports of 5 to 10 months. This safety net is required to avoid any sudden collapse in the value of Taka and to ensure a healthy growth of imports of productive inputs.

• Bangladesh Bank aims at supplying reserve money at the growth rate of 15.9 percent and broad money at 16.5 percent at the end of FY2015.

• Private sector credit growth has been targeted to grow at 15.5 percent at the end of FY2015.

• At the retail level both deposit and lending rates fall in July-December of FY2015 and the interest spread on average decreases from 5.31 percent in June 2014 to 5.17 percent in December 2015. Bangladesh Bank will continue its effort to reduce this spread.

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Islamic Banking around the worldThe twentieth century has witnessed a major shift of thinking in devising banking policy and framework on the basis of Islamic Shariah. This new thought was institutionalized at the end of the third quarter of the century and emerged as a new system of banking called Islamic banking. The establishment of the Islamic Development Bank (IDB) in 1975 gave momentum to the Islamic Banking movement. Since the establishment of IDB, a number of Islamic Banking and �nancial institutions have been established all over the world irrespective of Muslim and non-Muslim countries. Over the past few decades, the Islamic �nancial industry has rapidly expanded worldwide. Currently about more than 300 Islamic �nancial institutions (IFIs) have total combined assets exceeding $250 billion in more than 57 countries. It is projected that this will be a U$ trillion industry. The Islamic �nancial market is estimated to grow at annual rates averaging 15%. Their rapid growth has gained considerable attention in international �nancial circles where various market participants have recognized promising potentials. Kuala Lumpur and Bahrain are the world’s leading Islamic capital markets while Dubai and other players in the Middle-East are fast catching up. In the UK, the �rst Islamic bank has already opened its doors and Singapore has expressed its interest to be a leading Islamic �nancial centre, while China and India have also expressed interest in Islamic banking.

The Islamic �nance market has become extremely sophisticated as well as increasingly competitive. Today, virtually all large western �nancial institutions are involved in Islamic �nance whether through Islamic subsidiaries, “Islamic windows”, or the marketing of Islamic products. In recent years, a range of new Islamic products have appeared, such as Islamic bonds (or sukuk) and Islamic derivatives. While some of those products are widely accepted, others are still controversial.

Islamic Banking and its Development in BangladeshGenesis of Islamic Banking in BangladeshBangladesh is the third largest Muslim country in the world with around 160 million population of which 90 percent are Muslim. The hope and aspiration of the people to run banking system on the basis of Islamic principle came into reality after the OIC recommendation at its Foreign Ministers meeting in 1978 at Senegal to develop a separate banking system of their own. After 5 years of that declaration, in 1983, Bangladesh established its �rst Islamic bank. At present, out of

56 banks in Bangladesh, 8 full edged Islamic Banks and 20 Islamic Banking branches of 10 conventional banks are working in the private sector on the basis of Islamic Shariah. Islamic banks in Bangladesh since their inception have been gaining popularity in spite of some problems in their operation. An important development in Islamic banking in the last few years has been the entry of some conventional banks in the market and their use of Islamic modes of �nancing through their Islamic branches, windows, or units. It necessitates and encourages the mobilized ion of Islamic banking, which includes some of the giants in the banking and nance industry. Bangladesh was not indifferent to this turning move. Presently, 10 conventional banks have opened 20 Islamic banking branches alongside their interest- based branches. These conventional banks should focus on the safeguards that ensure the Islamic nature of these branches such as separation and compliance with Shariah. Separation of Islamic banking branches includes separation of capital, accounts, staff employed and of�ce. However, the most important thing is compliance with Shariah. There should be strong Shariah supervisory boards in order to prepare the model agreement, to approve the structure of every new operation, and lay down the basic guidelines for each and every mode of �nancing.

Formation of IBCFFor effective interaction, communication and exchanges the ideas & views of Shariah banking development and its practices in Bangladesh among the Islamic banking and Islami Banking Branches of the conventional Banks, a forum called “Islamic Bank Consultative forum (IBCF)” was formed in 1995. IBCF may be called �rst ever organizational development in establishing Islamic Banking in Bangladesh where the member banks discuss together the problems and issues relating to the growth and development of Islamic Banking in Bangladesh and common strategy and policies are formulated for implementation through this common Forum. The immediate goals of the IBCF were to establish Central Shariah Board for all Islamic Banks in Bangladesh, Islamic Money Market, Islamic Insurance Company(s), innovation of new �nancial products. Among them, Central Shariah Board is now functioning successfully. Bangladesh Government Islamic Investment Bond (BGIIB) and Islamic Money Market are the development of IBCF and Bangladesh Bank which are being enjoyed by almost all the Member-Banks. At present, 6 (six) numbers of full �edged Islamic Banks like (i) Islami Bank Bangladesh Limited (ii) EXIM Bank Limited (iii) Shahjalal Islami Bank Limited (iv) Social Islami Bank Limited (v) ICB Islamic Bank Limited and (vi) Al-Arafah Islami Bank Limited and 4 (four) numbers

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of Conventional banks having Islami Banking Branches like (i) Prime Bank Limited (ii) Dhaka Bank Limited (iii) Southeast Bank Limited and (ix) AB Bank Limited are the members of IBCF. Formation of CSBIBB (Central Shariah Board for Islami Banks of Bangladesh)CSBIBB was formed in 2001 with the view to observance of uniform policies and practices of Islamic banking among the member banks. Currently 7 (seven) full edged Islamic Banks and 10 (ten) conventional banks of Islamic banking Branches are the memberof CSBIB. CSBIBB is manly rest with the functions of (i) collections, translations & publications of Journals and References on Islamic Banking (ii) to arrange and undertake research programs, Training, workshop, seminar, symposiums (iii) gives award for contribution in Islamic Banking.

Bangladesh Government Islamic Investment BondIn principal, the method of treasury functions and its management of an Islami bank are quite different from other conventional bank. To support the daily treasury functions of Islami banks, Ministry of Finance, Government of the People’s Republic of Bangladesh in the year 2004 introduced a very special type of Shariah based bond called “Bangladesh Government Islami Investment Bond.” which is treated as a component of Statutory Liquidity Ratio (SLR).

The operation of 6-month, 1-year and 2- year Bangladesh Government Islamic Investment Bond introduced in Financial Year 2005 in accordance with the rules of Islamic Shariah where per unit bond price has been determined Taka 1,00,0000/-(Taka one lac). As per the rules, Bangladeshi institutions and individuals, and non-resident Bangladeshi, who agree to share pro�t or loss in accordance with Islamic Shariah, may buy this bond. As on end December 2014, the total sale value of this bond amounted to Taka 3.10 billion while balance of total amount of �nancing stood at Taka 10.75 billion and the net outstanding against the bond stood at Taka 7.65 billion. Social Islami Bank Limited has been actively involved in buying this bond and as on 31.12.2014 total outstanding buy amount (principal amount) of this bond stood at Taka 6.15 billion. Re-investment facility featured has been tagged with the bond and any Bangladeshi Institutions and Individuals, and non-resident Bangladeshi, who agrees to share pro�t or loss in accordance with Islamic Shariah, can accept borrowing from the fund.

Islami Banks’ Fund MarketTemporary arrangement of funds through MSD (Mudaraba Savings Deposit) and MND (Mudaraba Notice Deposit) accounts.

In order to day to day liquidity management, Islami banks cannot take part in call money Market operation and other activities like REPO and Reverse REPO which are very common techniques widely used by the conventional banks. Besides that, the Islamic Money Market of Bangladesh is not well structured. To mitigate the immediate/short liquidity crisis and management of surplus funds overnight, Banks running under Shariah principles have an arrangement between themselves to maintain MSD (Mudaraba Savings Deposit) Accounts or MND (Mudaraba Notice Deposit) Accounts for temporary transactions. Excess funds are placed to others banks and shortage of funds are replenished by calling other Islamic Banks or Islamic Banking Branches to deposit in these accounts. This technique is very popular among the Islamic Banks/Islamic Banking Branches. Introduction of Islamic Inter Bank Fund MarketBangladesh Bank has introduced Islami Inter Bank Fund Market (IIFM) with a view to facilitating liquidity management of the Shariah-based Islamic banks. Islami Banks cannot borrow fund from the conventional call money market due to non-compliance of Shariah. Moreover, absence of a Shariah-based money market refrain the banks to borrow fund from each other. Therefore, Islamic money market is integral to the functioning of the Islamic banking system in providing the Islamic �nancial institutions with the facility for funding and adjusting portfolios over the short-term. Financial instruments and inter-bank investment would allow surplus banks to channel funds to de�cit banks, thereby maintaining the funding and liquidity mechanism necessary to promote stability in the system. Although the Islamic Shariah-based banks have about 20 per cent market share of the total asset and liability in the country’s banking industry, they did not have any inter-bank money market (call money market) before. As a result, the banks were facing problems in managing excess liquidity, and on the other hand, if a bank needed fund to overcome sudden liquidity shortage, Islamic Banks had no option to manage fund except internal arrangement in between Shariah banks through MSD and MND accounts operations. At present, Islamic banks are holding more than Tk 4000 crore as excess liquidity, which is now remained idle due to absence of a formal money market for them. Introduction of IIFM has solved the problems of the Islamic banks

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and from now they are able to collect fund from inter-bank money market. Shariah-based banks transact with each other through a separate fund called IIFM and the central bank is the custodian of this fund. According to the rules, if any bank has excess fund, it will invest the amount in the IIFM for one day. Besides, another Islamic bank requiring fund can borrow funds from it from the IIFM for one day. The rate of pro�t in the Islamic bank money market is determined on the basis of the pro�t rates of the bank gives to its depositors on a three months’ deposit. The contract will be based on Mudaraba principle of Islamic banking law and the new system would open a new window of investment for the Islami banks having excess liquidity.

Bangladesh Bank Re�nance SchemeBangladesh bank vide its letter no-GBCSRD Circular no-01, Dt-18.01.2015 has created an Islamic Re�nance Fund comprising of Taka1,000 million allowing Islamic Banks and Non Bank Financial Institutions (NBFIs) to �nance in eco-friendly projects like agro-processor, small enterprises, renewable energy and environment friendly initiatives on the basis of Islamic Shariah.

This is to accelerate the involvement of excess liquidity of Islamic banks and NBFIs in economic activities and add value to the economy of the rural areas across the country.

According to the circular interested Islamic banks and NBFIs have to sign an agreement with ‘Green Banking & CSR Department’ of Bangladesh Bank. This covenant will empower Participating Financial institutions (PFIs) to disburse fund only in the projects including 47 products selected by Bangladesh Bank.

Under this Re�nance Scheme PFIs will lend on a 3 months renewable basis at their Mudaraba Savings a/c rate or bank rate (5%), whichever is lower. Pro�t generated from this fund will be distributed among the PFIs according to their investment ratio.Investment in Re�nance Scheme will be taken into account to ful�ll the Statutory liquidity Requirement (SLR) of Islamic banks and NBFIs.

As on 31.12.2014 SIBL has invested an amount of Taka 250 million in this Re�nance Scheme.

An Overview of the Bank SIBL started its operation on the 22nd November, 1995 as a Second Generation Islamic Bank in close co-operation and assistance of some renowned personalities of the Islamic world. H.E. Dr. Hamid Al Gabid, Former Secretary General of OIC & Prime Minister of Niger, H.E. Dr. Abdullah Omar Nasseef, Deputy Speaker of Saudi Shura Council & Ex-Secretary General of Rabeta Al-Islami, H.E. Ahmed M. Salah Jamjoom, Former Commerce Minister of Saudi Government, H.E. Prof. Dr. Ahmad El-Naggar (Egypt) participated to this noble endeavor as sponsor shareholders. Targeting poverty, SOCIAL ISLAMI BANK LTD. is indeed a concept of 21st century participatory three sector banking model in one in the formal sector, it works as an Islamic participatory Commercial Bank with human face approach to credit and banking on the pro�t and loss sharing it is a Non-formal banking with informal �nance and credit package that empowers and humanizes real poor family and create local income opportunities and discourages internal migration; it is a Development Bank intended to monetize the voluntary sector and management of Waqf, Mosque properties and introducing cash Waqf system for the �rst time in the history. In the formal corporate sector, this Bank would, among others, offer the most up-to date banking services through opening of various types of deposit and investment accounts, �nancing trade, providing letters of guarantee, opening letters of credit, collection of bills, leasing of equipment and consumers’ durable, hire purchase and installment sale for capital goods, investment in low-cost housing and management of real estates, participatory investment in various industrial, agricultural, transport, educational and health projects and so on.

To enhance the performance of the bank our management adopted strategic plan that include increase in ef�ciency, establishment of transparency, ef�ciency and accountability in all spheres of banking practices and as a logical consequence of reform. Establishing Central Trade Processing Unit (CTPU), Central Remittance Processing Unit (CRPU), Central Clearing Unit (CCU), ADC (Alternate Delivery Channel), Offshore Banking above all customized Products and Services are the reform processes that we had undertaken from 2010 to 2014 to be the compliant in one hand and to serve our client more ef�ciently and effectively on the other.

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Internal Control and ComplianceThe network of activities of banking have so diversi� ed and widened that without proper internal control, smooth functioning of banking cannot even be thought of. Effectiveness of the Bank’s Internal Control System is being monitored on an ongoing basis. Social Islami Bank establishes and maintains an adequate system of Internal Control which can effectively control all the key functions of the Bank, so that objectives of the bank are achieved and shareholders, depositors & other bene� ciaries are aptly bene� tted. To protect and safeguard the Bank form any means of fraud and error as well as loss, Social Islami Bank has introduced the “Internal Control and Compliance guideline” and also established a separate department called “Internal Control and Compliance Division (ICCD)” at Head Of� ce staffed with some experienced Senior Bankers’ rest with

the power and duties to train the employees of the bank, give direction, monitor, audit and establish control on day by day operational procedures and statutory and non-statutory compliances. Still, it is important to recognize the existence of inherent limitations of internal control.

During the year 2014, Internal Control & Compliance Division conducted auditing of 94 Branches on regular interval as per Annual Audit plan 2014 duly approved by Board Audit Committee. The Division conducted surprise Inspection on 21 branches in 2014. The Division also conducted audit on 10 Division/Departments of Head Of� ce in 2014. Key/high risk items are being reported to the Management as Executive Summary in the form of Of� ce Note. Key notes were also placed before the Board Audit Committee for information.

Capital Management of the Bank The bank started its journey in the year 1995 with a paid up capital of Taka 118.36 million and thereafter within 20 years, it has built a total Capital of Taka 13078.26 million using the external and internal sources. Given in table below is the last 5 years’ history of SIBL towards its capital journey efforts :

Fig in million Taka

Year Paid up Capital Total Capital Growth (over the

Source of Capital previous year)

2009 2,691.72 3,914.61 80.55% Internal & external (right issue) generation

2010 2,987.81 4,678.56 19.52% Internal generation

2011 6,393.93 9,534.52 103.79% Internal & external (right issue) generation.



2014 7,031.42 13078.26 12.52% Internal generation

To comply with the international practices and to make the bank’s capital more shock absorbent, SIBL is the compliant of risk based capital adequacy framework- BASEL-II. As per regulatory requirements, the bank uses standardized approach for assessing, evaluating and calculation of risk weighted assets w.e.f 2010. SIBL is always concerned about its capital and its due maintenance and accordingly while forecasting the business growth and regulatory capital requirements, internal and external sources of capital are considered in detail after capital impact study. Success of the year 2010 and 2011 and projected business growth in the year 2012 and ahead, the bank issued 1:1 Right Shares among its shareholders which injected a fresh capital of Taka 2,987.81 million during the year 2011. The � nal impact on capital at the year end 2014 stood

at (a) paid-up capital Taka 7031.42 million against Taka 7031.42 million of 2013 and (b) total capital (as per BASEL-II) Taka 13078.26 million against Taka 11623.52 million of 2013.

Capital of the Bank in 2014 (in million taka)

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Capital Base (Tier-i & Tier-ii) As per directives of Bangladesh Bank, all commercial banks are in the process of maintaining the minimum risk weighted capital to 10% dividing the total capital into Tier-I & II from 1st July 2011. Tier-I capital consists of (a) paid up capital (b) statutory reserves (c) retained earnings and Tier-II capital consists of (a) general provision on unclassi� ed Investments (b) 50% of revaluation surplus on Fixed Assets. As per requirements of the capital, it is mandatory to maintain the Tier-I capital minimum 5%. Capital base consisting of tier I & II of the Bank as on 31st December 2014 stood at Tk 13078.26 million as against Tk. 11623.52 million as on 31st December 2013. As per BASEL-II, the Comparative position of Capital Base of the year 2014 and 2013 is given as under:

Stress TestingTo analyze the soundness of capital impact / capital’s shock resilience of the bank more elaborately in the backdrop of 5 major risk factors of bank i.e. (a) Pro� t rates (b) Forced sale value of collateral (c) Non Performing Investment (d) Share price & (e) Foreign exchange rate based on minor, moderate and major levels of shocks consideration, Bangladesh Bank vide its circular no DOS Circular No 1 dated 21st April 2010 and revised guideline on 23 February 2011 directed all the commercial banks for stress testing on the basis of ‘Simple Sensitivity and Scenario Analysis” w.e.f. June 2010 on half yearly basis and thereafter quarterly basis w.e.f 1st quarter of 2011. Stress testing simply provides information on strength of a bank to absorb the level of shocks against all the risk factors.

Fig in million Taka

Particulars Yr-2014 Yr-2013

Tier-I

1. Paid up capital 7,031.42 7,031.42

2. Statutory Reserve 2,784.50 2,122.99

3. Retained Earnings 1,271.79 846.53

Sub-total 11,087.70 10,000.94

Tier-II

1. 1% provision on unclassi� ed investment 1,462.72 1,081.33

2. 50% of Revaluation surplus on Fixed Assets 527.83 541.24

Sub-total 1,990.56 1,622.57

Total 13078.26 11,623.52

Capital Adequacy Ratios Yr-2014 Yr-2013

i.Tier –I Capital Adequacy Ratio (Requirement 2011; 2010=5%; 4.5%) 9.63% 10.02%

ii.Risk Weighted Capital Adequacy Ratio (RWCAR) [Req. 10%] 11.36% 11.64%

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Required CAR 10.00%

CAR Maintained 11.36%

Stress Testing (solo) Result of the Bank as on December 2014

The bank has a continuous plan on its capital structure to defeat any unforeseen minor or moderate shocks at any time. The shock results of the 4th quarter of 2014 shows that the capital structure of the bank is well designed and also indicative that the bank will be able to maintain the capital adequacy ratio at the standard level as set by the regulator. To strengthen the capital base of the bank, the Board of Directors has recommended to issue 6 years redeemable Mudaraba Sub-Ordinated Bond for Taka 3000 million which was approved by the Shareholders’ of the bank in the 18th Annual General Meeting. The bank expects to complete the issue formalities by March 2015.

Required CAR 10%

CAR after CAR after CAR after Individual Shocks Minor Moderate Major Shock (%) Shock (%) Shock (%

Performing loan directly downgraded to B/L Sectoral Concentration 1 11.24 10.99 10.75

Performing loan directly downgraded to B/L Sectoral Concentration 2 11.34 11.31 11.27

Increase in NPLs due to default of Top large loan borrowers 9.52 6.33 4.51

Negative Shift in NPLs categories 11.06 9.21 8.92

Decrease in the FSV of the Collateral 11.25 11.13 10.90

Interest Rate 11.42 11.49 11.55

FEX Currency Appreciation 11.34 11.32 11.30

Equity Shock 11.32 11.27 11.18

Required CAR 10%

Minor Moderate Major Combined Shock Changes in Changes in Changes in CAR CAR CAR

Decrease in the FSV of the Collateral -0.12 -0.23 -0.46

Increase in NPLs due to default of Top large loan borrowers -0.66 -2.57 -6.34

Negative Shift in NPLs categories -0.30 -2.15 -2.44

Interest Rate 0.06 0.13 0.19

FEX Currency Appreciation -0.02 -0.04 -0.06

Equity Shock -0.04 -0.09 -0.18

Total Change -1.07 -4.94 -9.28

CAR after combined shock applied (%) 10.29 6.42 2.08

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Name of the Instrument : SIBL Mudaraba Sub-Ordinated Bond

Issuera : Social Islami Bank Limited (SIBL)

Issue Manager : AAA Finance & Investment Limited

Trustee : Sandhani Life Insurance Co. Ltd (SLIC)

Purpose : To Consider as Supplementary Capital (Tier II)

Amount of Issue : BDT.3000,000,000

Nature of the Debt Instrument : Mudaraba Sub-Ordinated Debt

Tenure of Bond : 6 (six) years

Value Per Unit : BDT.500,000

Number of Issuing Unit : 6,000 (six thousand) units

Market Lot : For Individual 01 (one) unit

For other than individual 20 (twenty) units

Minimum Application : For Individual BDT.500,000

For other than individual BDT.10,000,000

Rate of Return/Pro�t Rate : 120% of 1 (one) year of Mudaraba Term Deposit pro�t rate for the preceding 180 days

Calculation of Pro�t : Total Pro�t is calculated in two stages. First is the Basic Pro�t which is further enhanced to determine Total Pro�t considering the contribution from the Bank’s “Pro�t before tax”

Pro�t Payment Schedule : Semi Annually not later than 60 Days from Expiry of 6 (Six) Months and 12 (Twelve) Months of each year from Issuance

Repayment Schedule / Redemption Policy

: 20% of the total bond value to be redeemed at the end of each year starting from year 2 (two) at face value. Repayment schedule of the Mudaraba Sub-Ordinated Bond is as under:

Issue Size (BDT) 3,000,000,000

Years Repayment (BDT)

Balance (BDT)

Repayment/ Re-demption

End of 2nd year 600,000,000 2,400,000,000

End of 3rd year 600,000,000 1,800,000,000

End of 4th year 600,000,000

1,200,000,000


600,000,000


-

Redeemable Option : Redeemable on maturity of face value

Late Redemption : 2% per annum more than offered rate

Offering Style : Private Placement

Prospective Investors : Bank, Insurance, Financial Institute, Corporate House and General Public

Principal Payment : Bullet Payment on Maturity

Transferability : Easily Transferable

Bangladesh Securities and Exchnage Commission (BSEC) has approved the “SIBL Mudaraba Sub-ordinated Bond” for Taka 300 crore on 26 August, 2014. Following are the salient features of the Bond:

Features of the Bond:

Disclosure on SIBL Mudaraba Sub-ordinated Bond

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Listing Status : Non-Listed

Convertibility : Non-Convertible

Prepayment, Call of Refunding : The option of prepayment, Call of refunding may be at discretion of the Issuer

Rating Agency : Emerging Credit Rating Limited (ECRL)

Rating Status of the Issue : Instrument Rating Long Term: A+, Outlook: Stable

Date of Rating April 22, 2014

Validity April 21, 2015

Entity Rating Long Term: AA-, Short Term: ECRL-2, Outlook: Stable

Date of Rating April 22, 2014

Validity April 21, 2015

Over Subscription : In the event of this issue of bond being oversubscribed, the allotment will be on a �rst come �rst served basis.

Under-Subscription : Any undersubscribed portion will be re-offered for fresh subscription depending on prevailing market conditions. The company will borrow from traditional sources if it cannot mobilize funds from bond issuances.

Income Tax : As applicable by the Govt.

Enforcement of charges over the Securities

: No charges will create over the Securities. Details presented in the trust deed

Documentation : Documentation will include but not be limited to the following:-1) Bond Subscription Agreement;2) Trust Deed;3) Any other instrument(s) relating to this sort of transaction.

Regulatory Approval : Upon approval from the Bangladesh Bank and the Bangladesh Securities and Exchange Commission, SIBL will issue the Bonds as per the information memorandum. In no way SIBL shall issue any such bonds without taking approval from the BB and the BSEC.

Disclosure on Rating of SIBL Mudaraba Sub-ordinated Bond

Corporate Bond Rating

Emerging Credit Rating Limited (ECRL) has assigned A+ID (Pronounced as Single A Plus) long term credit rating to the Social Islami Bank Limited’s Mudaraba Subordinated Bond (hereinafter referred to as “The Subordinated Bond” or “The Issue”) issuance of BDT 3,000 million in face value. The outlook on the rating is Stable. The rating is consistent with ECRL’s methodology for this type of �nancial institutions and bond ratings. ECRL considered �nancial performance, capital base, asset quality, management experience and prospect of the industry while assigning the standalone rating and the possibility of likely default of the bond while assigning the bond rating. The Subordinated Bond, which quali�es as Tier-2 Capital for Social Islami Bank Limited (hereinafter referred to as “SIBL” or “The Bank” or “The Issuer”), is rated lower than SIBL’s

Date of Declaration Valid Till Rating ActionLong Term

RatingShort Term

RatingOutlook

April 22, 2014 April 21, 2015 Initial A+ID - Stable

standalone rating, because of the Subordinated position of the bond relative to the SIBL’s depositors and other liabilities (borrowings). The assigned rating re�ects the strengths of the company which is backed by the growth in earnings, deposits and investments, adequate capital coverage with high tier 1 capital, and controlled liquidity position. However, ECRL is concerned about non-compliance of core risk related issues as directed by Bangladesh Bank, devolved asset quality, high growth rate of risk weighted assets compared to core capital growth, negative growth of non-investment income in FY2013 and high concentration of bad/loss investments in total gross NPI. Besides, turmoil in the banking industry emanating from revised regulatory requirements along with stiff competition to secure deposits among the exiting & potential market players

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. LiquidityThe bank has been following an approved ALM (Asset Liability Management) guideline, duly approved by the Board of Directors of the bank, in managing the day to day liquidity since 2005. Senior management of the bank is involved in the total process of liquidity management and discharges decision through ALCO (Asset Liability Committee) meeting. Management of the bank put much stress on the bank’s liquidity on regular basis rather than casual. Members of the ALCO sit minimum once in a month and instantly in case of any emergency to determine the strategy to defeat any unusual market liquidity situation. The bank has a clear guideline to face the stress liquidity situation to protect the bank at anytime from any means of liquidity mismatch. During the year under report, the bank conducted 12 numbers of ALCO meetings. To support the ALM and ALCO, the bank has a special desk under the name and style ‘ALM Desk’ which is (a) primarily responsible for scanning the liquid market place along with national, continental and international economy and economic factors in every second (b) secondly, communication-monitoring-follow up of ALCO decision and thirdly, (c) closely monitoring structured liquidity pro�le of the bank through in-depth analysis of Asset & Liability position of the balance sheet and tracking the different liquidly parameters whether all these factors are moving within the controlled environment/tolerable limit or nor and report to the CEO. Some young and brilliant professionals are assigned to perform the ALM jobs and highly concerned to assist the bank in proper liquidity management under the close supervision of senior management. Liquidity in the form of Balance with Bangladesh Bank, Sonali Bank (as the agent of Bangladesh Bank) and cash in hand including Foreign Currency stood at Tk. 12,120.69 million as at 31 December 2014 as against Tk. 8,894.75 million in last year to maintain cash & statutory liquidity. The Bank is committed to maintain the CRR and SLR through effective management of assets & liabilities of the Bank in order to maximize the pro�t. During the year under report, the bank effectively maintained required CRR and SLR throughout the year without fail as per Bangladesh Bank’s norm.

Placement & FundingStyle and method of placement & funding of Shariah compliant banks are quite different from conventional banking style. Shariah banks operate their placement & funding under restricted environment and keep them apart from participation in ‘Call Money Market Operation’ and from ‘Treasury Bill’ purchasing programs like other contemporary banks- which are the mostly famous and widely used techniques in the banking industry at home and abroad. However, for the Islami banks, borrowing from Bangladesh Govt. Mudaraba Bond –a recognized external fund, provides liquidity to the Islami banks under some restricted environment. Borrowings from Bangladesh Govt. Mudaraba Bond mostly depend on the availability of the fund and availability of securities.

SIBL being a Shariah based bank, surplus funds placement and borrowings are usually initiated in the following way :

(a) Placement of fund with other Banks and Financial Institutions in the form of Savings, Notice and Term deposit. Since the funding of Shariah banks are restricted to some extend, the bank always keeps room in its ID ratios maximum up to 89.50% and as such the surplus funds are kept with other Islami Banks or with the Islami banking branch / windows of conventional banks. Usually, Savings & Notice deposits accounts with other banks are used to manage the temporary or short term surplus for income generation purpose on one side and to withdraw money instantly to support the total liquidity system of the bank on the other. Total placement with other Banks and Financial Institutions at the year end 2014 was Taka 9,474.25 million compared to Taka 9,064.88million of 2013.

(b) Borrowings of fund from Bangladesh Govt. Mudaraba Bond SIBL borrows fund from Bangladesh Govt. Mudaraba Bond against the lien marking of

(i) Instruments of Investment in Bangladesh Govt.

Mudaraba Bond

(ii) IBP Instruments

(iii) MTDR receipts with other Bank’s Investment

SIBL has a borrowing of Taka. 6,150.00 million as on 31.12.2014 compared to Tk. 5,500.00 million of the year 2013. The cost of such borrowings is equivalent to savings deposit rate.

also causing concerns for the bank. The rating consideration has also included the unsecured position of the bond in discussion.

The rating was assigned on the basis of draft agreements between the issuer, trustee & mandated lead arranger provided by the entity in discussion and the rating may signi�cantly change if the covenants in those agreements are altered.

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DepositsDuring the year 2014, the bank drew-up a series of action plans both short term and long term to raise the deposit base of the Bank in line with the Directives of the Bangladesh Bank. The short-term action plan included launching of special drives like deposit mobilization months during March-April 2014. As a result of continuous evaluation and monitoring, we could signi�cantly improve the liquidity position as well as deposit mix in 2014. The following graph shows the deposit trend of the Bank :

Client Deposit (Taka in Million)

Comparative Deposit Mix

The bank has specially focused on liability marketing and accordingly a special division named “Marketing & Business Development Department-MBDD” has been formed to concentrate the deposit products. To support the total efforts and activities of the MBDD, another division called “Brand & Communication Division- BCD” has also been formed in the year 2010 headed by a Deputy Managing Director which is mainly engaged in image building activities using all modern concepts & tools so that the messages of our bank easily reach to the grassroots level to the nation and abroad. BCD has made the MBDD con�dent in deposit procurement programs of the bank and accordingly trying to introduce new and timeliness deposit product.

In the year under review, banking sector faced excess liquidity and as a result of that cost of deposit in the industry decresed signi�cantly. SIBL overcome the excess liquidity situation successfully and posted a remarkable growth in the year 2014. Cost of deposit for the year under review is 7.66 % compared to 9.04 % of the year 2013 and effective planning and utilization of deposits ensured a growth in revenue earning.

2010 2011 2012 20130

20000

40000

60000

80000

100000

120000

2014

39833.37

56661.16

81091.39

95984.82109040.63

Fig in million Taka

Particulars Year-2014 Year-2013 Growth

Al-Wadeeah Current and Other Deposit Accounts 13,059.52 12,198.62 7.06%

Mudaraba Savings deposit 9,818.28 6,468.73 51.78%

Mudaraba Term deposit 75,356.41 62,746.87 20.10%

Other Mudaraba deposit 26,201.53 20,605.68 27.16%

Cash Wqf. 99.28 84.58 17.38%

Total 124,535.01 102104.48 21.97%

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Pro� t paid to DepositorsThe bank has distributed Tk. 9007.20 million among the Mudaraba Depositors as pro� t in 2014 as against Tk. 9706.87 million in 2013. Pro� t paid in 2014 among the various types of Mudaraba depositors at the following rate:

Sl. No. Mode of Deposits Pro� t rates for Pro� t rates for the year 2014 the year 2013

1 Mudaraba Savings Account 4.10% 4.10%

2 Mudaraba Notice Deposit Account 4%-6% 4%-10%

3 Mudaraba Term Deposit Account

a. 1 month 6.00% 10.00%

b.3 months 9.50% 11.50%

c.6 months 9.50% 11.50%

d.12 months 9.50% 11.50%

4 Mudaraba Scheme Deposit Accounts

a. Mudaraba Monthly Pro� t Deposit Scheme 10.00% 12.50%

b. Mudaraba Millionaire Savings Scheme 10.00% 12.50%

c. Mudaraba Education Deposit Scheme 10.00% 12.50%

d. Sonali Din Special Deposit Scheme 10.00% 12.50%

e. Mudaraba Special Deposit Pension Scheme 10.00% 12.50%

f. Mudaraba Bashsthan Savings Scheme 10.00% 12.50%

g. Mudaraba Hajj Savings Deposit (Kafela) 10.25% 13.00%

h. Cash Waqf 10.25% 13.00%

i. Mudaraba Lakhopati Deposit Scheme 10.00% 12.50%

j. Mudaraba Double Bene t Deposit Scheme 10.00% 12.50%

k. Shamridhir Shopan Special Deposit Scheme 10.00% 12.50%

l. Mudaraba Marriage Savings Scheme 10.00% 12.50%

m. Mudaraba Mohorana Savings A/c (10 Years) 10.00% 12.50%

n. Mudaraba Mohorana Savings A/c (5 Years) 10.00% 12.50%

o. Shanchita Special Deposit Scheme 6.00% 8.00%

p. Subarnalata Special Deposit scheme 10.00% 12.50%

q. SubarnaRekha Special Deposit Scheme 10.00% 12.50%

r. Sabuj Chaya Special Deposit scheme 10.00% 12.50%

s. Sabuj Shayannaya Special Deposit Scheme 10.00% 12.50%

t. Shukher Thikana Special Deposit Scheme 10.00% 12.50%

u. Shachanda Protidin Special Deposit Scheme 10.00% 12.50%

v. SIBL Young Star Account 8.00% 10.00%

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InvestmentSuccess depends on our ability to consistently satisfy the ever-changing choices of customers. We are committed to be innovative and responsive, while offering high quality tailored products and services at competitive prices. We are devoted to be one of the best �nancial service providers in Bangladesh delivering superior products to our valued customers within a framework of shared integrity. Social Islam Bank Ltd.’s Investment Risk Management Division (IRMD) and Investment Administration Division (IAD) are relentlessly working keeping these values and commitments in mind.

Our main challenge is to maintain and manage the tremendous growth of the investment portfolio which is expected to achieve a signi�cant growth in 2015 from the current position of TK 107,899.96 million by ensuring asset quality and to distribute investment to the target group offering competitive price, inducting best of the best clients and stopping migration of our existing clients. We need to build our capacity further and develop the overall discipline to cope with the tremendous growth of investment portfolio and to meet the challenges of banking business. To support the total Investment management system of the bank, we are constantly building professional knowledge of our of�cials and executives. We are trying to attract our client through product development and diversi�cation in line with the Shariah principles.

Generally Investment is the largest source of risks which is stemmed from both on-balance sheet and off-balance sheet activities. It may arise from either inability or from unwillingness of the customers. Investment risk comes from a bank’s dealing with individuals, corporate, banks and �nancial institutions or a sovereign. The assessment of investment risk involves evaluating both the probability of default by the borrower and the exposure or �nancial impact on the bank in the event of default. SIBL is making greater efforts to identify and limit various risks, which affect investment directly like market risk, liquidity risk and operational risk. IRMD is working to have effective internal policies, systems and controls to identify, measure, monitor and control investment risk. Social Islami Bank Ltd. through its steady progress and continued success has earned reputation. The network of the branches widened and the size of investment portfolio of the Bank has been increasing substantially day by day. As in the past, over the years the Management concentrated its efforts on

popularizing the Islamic Banking concept side by side expanding its operational activities. Alhamdulillah, our sincere efforts have been crowned with success and Bank’s businesses in all spheres have increased over years. Now SIBL is one of the fast growing private commercial banks in the country.

General Investment (Taka in Million)

2010 2011 2012 20130

20000

40000

60000

80000

100000

120000

2014

36680.28

53908.58

76024.9785922.33

107899.96

The bank has exerted its best efforts towards implementation of Core Risk Management Guidelines in Investment Risk Management. Restructuring of Organizational structure has been done to carry out better and ef�cient operation of this robust division by segregating the division into 2 (Two) separate Divisions: (i) Investment Risk Management Division (for processing investment approval) & (ii) Investment Administration Division (for Disbursement & Documentation, Monitoring, CIB, Policy, Compliance, Returns, CL & MIS related issues) as per CRM guideline. At the same time, the bank has ensured the disposal of investment proposals and disbursement of the sanctioned investment facility within the quickest possible time and by complying documentation formalities and all related rules, regulations and investment norms of regulatory bodies.

Besides, for quick disposal of investment proposal and ensure proper and timely administration function management has assigned coordinators for 2 (Two) Divisions.

Investment Risk Management Division is also very much aware about the upcoming risk factors involved in banking industry. As a result we are now more cautious about implementing various risk mitigating factors in line with the directives of Bangladesh Bank and GoB. We are already in line to implement BASEL-II phase by phase so that regulatory bindings can be implemented. Meanwhile some of our investment clients have been rated by leading rating agencies and many others are in process. We therefore hope that in coming days we

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would be more successful in mitigating risk factors and presenting quality assets.

Global investment of SIBL in the year 2014 showed a favorable growth. The total investments of the Bank stood at Tk 107899.95 million in various sectors as at 31st December 2014 against Tk. 85922.33 million as on 31st December 2013 registering a growth 25.59% that is the sign of the condense of the clients on the Bank. The net increase in investment by Tk. 21977.62 million as compared to 2013 was due to expansion of business. We are now concentrating our efforts to increase quality investments to facilitate the investment earnings. Till December 2014, 388 corporate and 80 SME investment clients have been rated, of whose total investment value is Tk. 64222.71 million, by leading rating agencies, and many others are in queue for getting the rating report and we are now concentrating our efforts to increase quality investments to facilitate the investment earnings. The Bank has extended � nancial support towards some of the largest business conglomerates like Badsha Textile, Butter� y Marketing Ltd. and sister concerns, Meghna Group, Partex Group, Sadma Fashion Wear Ltd., Base Group, ACME, Pran Group, NASA Group, City Group, ACI, Mir Akhter Ltd., S.A Group, Aman Spinning, ABA Group, Megnum Steel, Tharmex Group, Bangladesh Development Group, BSRM, KDS Group, Noman Group, United Group, Abdul Monem Ltd. Bengal Group, etc. We also integrated our collaborative efforts vigorously and successfully during this time for helping various small and medium enterprises for supplying their capitals through our different micro credit investment tools. We are also very much successful in helping several people through our Consumer Finance Investment facilities during this year. The following chart

depicts the year wise position of investment since year 2009:

Despite stringent circulars of Loan Classi� cation & Provisioning by Bangladesh Bank, SIBL played a crucial role for keeping Non-Performing Investment (NPI) at 4.56%, through vigorous drive towards recovery of NPI and quality disbursement for fresh investments taken seriously by the management. Non performing asset (NPA) of SIBL has decresed to 4.56% compared to 5.35% in 2013. Drive towards recovery of NPA and quality disbursement of fresh investments have been taken seriously by the management. Our External Auditor and Credit Rating Agency have also appreciated our policy and endeavor towards new investment and recovery of the NPAs. Out of Investment of Tk107899.96 million, Tk 4,921.57 million has become classi� ed. It is mentionable here that the asset quality of some of our Branches have deteriorated since 2004 resulting in the increase of classi� cation by 11.36% in 2004 and as continuation to that, the bank was put under Problem bank list in the year 2005 by the Bangladesh Bank. Since then, our all out efforts gradually reduced the classi� ed investment and successfully maintained required provision against classi� ed investment as depicted in the Audit Report.To overcome the situation, we launched special drives to recover the sticky and classi� ed investments. Since 2004, the bank has written off investment to the tune of Tk 2,338.21 million as on date of report and thus the classi� cation ratio stood at 4.56%. As per classi� cation rules of the Bangladesh Bank, the bank has maintained a provision of Tk 3,041.30 million in this year against required speci� c provision of Tk 1,692.05 million.Classi� cation composition of investment of the bank as on 31.12.204 has been given in the table below:

Fig in million Taka

Status Provision Rate 2014 2013

Amount Composition Amount Composition

Unclassi� ed investment 0.25%, 1% & 2% 1,462.44 48.09% 1,065.64 38.42%

Special Mention Account 5% 0.27 0.01% 15.69 0.57%

Su-Standard investment 20% 25.18 0.83% 4.62 0.17%

Doubtful Investment 50% 567.15 18.65% 171.82 6.20%

Bad /Loss Investment 100% 986.21 32.42% 1,515.61 54.64%

Total 3,041.30 100.00% 2,773.38 100.00%

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Investment Plan for 2015The plan has been formulated keeping in view the national economic priorities and aiming at diversi� cation 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 activities and different economic strata of the society within the fold of Bank’s investment operations.

SIBL has declared 2015 as “Sustainability and Growth” and budgeted to reach investment portfolio to Tk. 135000 Million starting from Taka 107899.96 million only and maximization of operating pro� t will help us in achieving this goal. To achieve the target SIBL is looking after the country’s top business tiers to boost the growth of the bank. Segment of these groups are Telecom Operators, Ready Made Garments (RMG), Textiles, Pharmaceuticals, NBFI, MNCs etc. IRMD is always ready to give a boost to the services to such companies to support the branches.

With high quality resources equipped with both operational and product expertise under a competent management team, Investment Risk Management Division (IRMD) & Investment Administration Divison (IAD) is always ready to take the challenge of tremendous growth of the investment portfolio. But under any circumstances, quality of the investment portfolio or related risks like market risk, liquidity risk and operational risk will be analyzed and subsequently, mitigated before investment approval. IRMD (Investment Risk Management Division) is working to have effective internal policies, systems and controls to identify measure, monitor and control investment risk.

Green BankingGreen Banking is an emerging issue in the present banking arena. Green Banking is a holistic approach, which encourages environmental protection, sustainability, resource-savings and economic attitude in personal and professional life among others. Bangladesh Bank is emphasizing much on environment and environment-friendly project.

Green Banking issues are properly addressed at SIBL as per guidelines of Bangladesh Bank. Bangladesh Bank vide BRPD Circular no. 02 dated 27.02.2011 advised all banks to start Green Banking Activities comprising a set of initiatives in 03 (three) phases with speci� c time frame.

1.1 Policy formulation and governance 1.2 Incorporation of environmental risk in CRM 1.3 Initiating in-house environment management 1.4 Introducing green house � nancePhase 01 1.5 Creation of climate risk fund 1.6 Introducing green marketing 1.7 Online banking 1.8 Supporting Employee training, consumer awareness and green event 1.9 Disclosure and reporting of green banking activities 2.1 Sector speci� c environmental policies 2.2 Green strategic planning 2.3 Setting up green branches 2.4 Improved in-house environment managementPhase 02 2.5 Formation of bank speci� c environmental risk management plan and guidelines 2.6 Rigorous programs to educate clients 2.7 Disclosure and reporting of green banking activities

Phase 03 3.1 Designing and introducing innovative products

3.2 Reporting in standard format with external veri� cation

Strategy Framework of Green Banking

1.1 Policy formulation and governance 1.2 Incorporation of environmental risk in CRM 1.3 Initiating in-house environment management 1.4 Introducing green house � nancePhase 01 1.5 Creation of climate risk fund 1.6 Introducing green marketing 1.7 Online banking 1.8 Supporting Employee training, consumer awareness and green event 1.9 Disclosure and reporting of green banking activities 2.1 Sector speci� c environmental policies 2.2 Green strategic planning 2.3 Setting up green branches 2.4 Improved in-house environment managementPhase 02 2.5 Formation of bank speci� c environmental risk management plan and guidelines 2.6 Rigorous programs to educate clients 2.7 Disclosure and reporting of green banking activities

3.1 Designing and introducing innovative products 3.2 Reporting in standard format with external veri� cation

1.1 Policy formulation and governance 1.1 Policy formulation and governance 1.2 Incorporation of environmental risk in CRM 1.2 Incorporation of environmental risk in CRM 1.3 Initiating in-house environment management 1.3 Initiating in-house environment management 1.4 Introducing green house � nance 1.4 Introducing green house � nancePhase 01 1.5 Creation of climate risk fundPhase 01 1.5 Creation of climate risk fund 1.6 Introducing green marketing 1.6 Introducing green marketing 1.7 Online banking 1.7 Online banking 1.8 Supporting Employee training, consumer awareness and green event 1.8 Supporting Employee training, consumer awareness and green event 1.9 Disclosure and reporting of green banking activities 1.9 Disclosure and reporting of green banking activities 2.1 Sector speci� c environmental policies 2.1 Sector speci� c environmental policies 2.2 Green strategic planning 2.2 Green strategic planning 2.3 Setting up green branches 2.3 Setting up green branches 2.4 Improved in-house environment management 2.4 Improved in-house environment managementPhase 02 2.5 Formation of bank speci� c environmental risk management plan and guidelinesPhase 02 2.5 Formation of bank speci� c environmental risk management plan and guidelines 2.6 Rigorous programs to educate clients 2.6 Rigorous programs to educate clients 2.7 Disclosure and reporting of green banking activities 2.7 Disclosure and reporting of green banking activities

3.1 Designing and introducing innovative products 3.1 Designing and introducing innovative products 3.2 Reporting in standard format with external veri� cation 3.2 Reporting in standard format with external veri� cation

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Green banking is fast gaining momentum in Bangladesh since its of�cial inception in the second-half of 2011. During a short span of time, several policy interventions were taken by Bangladesh Bank (BB) for accelerating green growth of the country. Green Development and Inclusive Growth – are at the focal points in Green Banking.

Recently, Bangladesh Bank has widened the number of green products under several categories to widen their outreach in green �nancing. Now, 47 green products are being offered in 11 categories, namely - (i) Renewable Energy, (ii) Energy Ef�cient Technology, (iii) Solid Waste Management, (iv) Liquid Waste Management, (v) Alternative Energy Plant, (vi) Non-Fire Block Brick Manufacturing Project, (vii) Recycling Plant and Recyclable Product Manufacturing Plant, (viii) Improvement of Brick Kiln Ef�ciency (ix) Green Industry, (x) Factory Work-Environment and Security Ensuring, (xi) Miscellaneous (Vermi-compost, Palm Oil Plant etc).

Green Banking initiatives are multi-stake holder approach and are never ending process, the implementation is possible only when collective efforts of all are being made.

Green Banking performance of SIBLDuring the year under review, SIBL disbursed a total sum of Taka 6,518.03 million towards Green Banking Investment Account whereas in the year 2013 total disbursement was Taka 4,196.66 million that shows 55.31% growth..

Sl. No. Name Achievement

01. Formation of Green Banking Unit Green Banking Unit has been restructured for smooth functioning of Green activities

02. Circulation of Environment Environment Due Diligence (EDD) checklist is being Circulated Due Diligence (EDD) vide instruction Circular no. 2011/23 dated May 23, 2011

03. Circulation of Environment Environment Risk Rating (ERR) is being done as per instruction Risk Rating (ERR) Circular no. 2011/23 dated May 23, 2011

04. Circulation of Green Of�ce Guide Green Of�ce Guide checklist is being monitored as instruction Circular no. 2011/29 dated December 29, 2011

05. Formation of Green Banking Policy Green Banking Policy of SIBL has been approved by the Board of Directors of the Bank in its 267th meeting (emergency) held on 29.12.2011

06. Some Green Event Green Banking has been focused in the Annual Calendar, 2013. Such endeavor has widely been accepted and applauded.

• SIBL has made donation of Tk.2.00 lac for making a Guava Garden of Public Order Management (POM) Unit at Mirpu of Dhaka Metropolitan Police (DMP). • e-Circular system has been introduced. • e-Newsletter has been introduced replacing paper book. • Solar panel installed in some branches.

ParticularsYr-2014 Yr-2013

Disbursement Outstanding Disbursement Outstanding

ETP

Finance for Installation of ETP - - 20.39 -

Projects �nanced having ETP 5,452.98 938.22 3,224.44 -

Solar Panel/Renewable Energy Plant 265.88 1095.54 476.99 2407.20

Fig in million Taka

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14Green Banking Initiatives

ParticularsYr-2014 Yr-2013

Disbursement Outstanding Disbursement Outstanding

Hybrid Hoffman Kiln (HHK) 168.50 192.25 4.70 100.62

Others (Please specify) 630.67 1237.61 470.14 442.29

Total 6,518.03 3463.61 4,196.66 2950.11

Green Banking Initiatives Yr-2014 Yr-2013

ATM (number)

No. of Own ATM 20 14

No. of Shared ATM 1165 3520

Online Banking

No. of Total Branches 100 94

No. of Branches with online coverage

100 94

Internet Banking

No. of Accounts facilitated with Internet Banking

1636 850

% of Accounts facilitated with Internet Banking

0.24% 0.14%

Mobile / SMS Banking

No. of Accounts facilitated with Mobile/SMS Banking

42732 26392

% of Accounts facilitated with Mobile/SMS Banking

6.32% 4.49%

No. of Training Programs/Seminars /Workshops/ Awareness Programs exclusively conducted for Green Banking

5 4

Employees 150 129

Customers 150 129

Activities towards Green Events Participated in BTV talk show on Green Banking as part awareness and capacity building

Participated in BTV talk show on Green Banking as part awareness and capacity building

Weekly ARTHOPROBAHO in its 8th edition has published a report on Green Banking Initiatives of SIBL on 15.07.2013

Weekly ARTHOPROBAHO in its 8th edition has published a report on Green Banking Initiatives of SIBL on 15.07.2013

A book titled ÒmeyR ‡`k - meyR A_©bxwZÓ has been published by ARTHOPROBAHO on 19.02.2014, where an opinion of Mr. Md. Sha�qur Rahman, Managing Director of our bank has been included titled Òcwi‡ekevÜe meyR A_©bxwZ c„w_ex‡K evuPv‡bvi Rb¨B

cÖ‡qvRbÓ. And an article titled Òevsjv‡`‡k MÖxb

e¨vswKs-Gi ïf m~Pbv t wKQz ¯§„wZ I Avgv‡ì KiYxqÓ of Mr. Shawket-Ul-Amin, Head of GBU, SIBL has been published.

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Our future plan:SIBL has the plan to focus on the following areas of operation for promoting Green Initiatives:

• To popularize Online Banking, • To increase Internet, SMS & Mobile Banking • To introduce Video Conferencing • To increase Efforts towards near paperless

banking • To promote Tree Plantation Campaign • To promote green initiatives through

advertisement in print/electronic media • o rationalize use of consumption of paper,

water, electricity and utilities • To reduce Emission of Carbon • To conserve environment • To protect air/water pollution

AppreciationIn the Annual Report of Green Banking 2012 published by the Bangladesh Bank, Social Islami Bank Limited has been ranked among top ten banks in Bangladesh for Green Banking Activities. SIBL has also been ranked as top three banks that played 15.25% share among ten banks in marketing, training and development initiatives.

Recovery Performance Special Asset Management (SAMD) renamed from the previously ‘Law and Recovery Division’ (LRD). SAMD started its activities from November 2010 for better functioning and for maintaining the continuous process for recovery and regularization of bad/ written-off/ stuck up investments portfolio of the Bank throughout the year. This division also undertakes different recovery drives

for recovery of bad/written-off investments of the Bank, works for settlement of bad/written-off investments under the legal framework of the country and settles matters of bad/written-off investments through adopting different measures outside the court. SAMD is also engaged in handling all legal matters of the Bank. On-site, off-site, legal affairs, reporting and execution of decision desks are continuously working for recovery and regularization of bad assets.

By adoption of different effective measures by the SAMD, the classi�ed investment comes down at 4.56% in the 2014 year end from 5.35% in the 2013 year end, which is a remarkable milestone for the Bank while the average classi�cation is about 10% in aggregate in the banking sector of the country. Up to the year 2013, recovery from written-off investment was Taka 130.68 million while in the year 2014 it reached at Taka 170.86 million with good trend.

Up to the year 2014 total 149 cases/suits are decreed in favor of the Bank with involvement of Taka 1135.93 million. The total such cases/suits of the Bank is 760 in number with involvement of Taka 104977.89 Lac, �led by the Bank against different clients under NI Act and under Artha Rin Adalat Ain 2003. This depicts also a good trend.

Different management tools like formation of different committees/ teams/ task forces also have been completed to implement the recovery policies of the bank as well as to monitor the recovery of investment. For maintaining continuous and vigorous contact and strong monitoring, committees have been formed at branch level giving particular targets of recovery from bad/ written-off investments. To maintain contacts with clients as well with the engaged of�cials for recovery, particulars assignments have already been given to Head Of�ce executives/ of�cials to see the progress of recovery on off-site basis.

Green Banking Initiatives Yr-2014 Yr-2013

An article titled “How Green Banking can make us Green ?” written by Head of GBU of SIBL has been published in Monthy BISHWABIDYALAYA PORIKROMA on 10.09.2013Green Banking Activities are being disclosed in Annual Report.

Green Banking Activities are being disclosed in Annual Report.

Green Banking Activities are being disclosed in the website.

Green Banking Activities are being disclosed in the website.

Green Banking Activities are being focused in printing & electronics media.

Green Banking Activities are being focused in printing & electronics media.

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Investment Income The bank has registered an income from investment of Taka 13,943.26 million under different mode of investment accounts in the year under review compared to Taka 13,629.42 million of 2013 which is an increase of 2.25% from the previous year. A comparative position on income received from different mode of investment in the year 2013 and 2014 is given below

Fig in million Taka

Investment Mode Year-2014 Year-2013 Growth

Mudaraba 252.39 475.91 -46.97%Bai-Muzzal 7576.05 6895.60 9.87%Hire Purchase Sirkatul Meelk 2211.55 1802.28 22.71%Musharak 49.03 57.86 -15.26%Bai-Salam 3.79 9.37 -59.52%Quard against MTDR, Scheme & Others 886.72 1041.64 -14.87%Inland Document Bill Purchased 417.37 401.66 3.91%Foreign Document Bill Purchased 1059.87 1070.39 -0.98%Pro�t on Ijarah 18.58 24.67 -24.71%Other Banks and NBFI’s 928.13 1367.36 -32.12%Other Investment ( Card, Wakalat Fees etc) 273.31 448.13 -39.01%Pro�t on Mudaraba 266.46 34.55 671.29%Total 13943.26 13629.42 2.25%

SAMD arranges meeting with clients both at Head Of�ce and at branches frequently as and when required. In these meetings, progresses also are being evaluated regarding recovery of the bad/written-off investments in the light of the previous commitments given by clients to the Bank. Besides, assigned executive/ of�cials have been brought under accountability to get progress towards recovery.

To improve asset quality and to get good economic health of the Bank, the SAMD is working continuously with different techniques. It is expected that above all measures taken by the SAMD will put effective impact towards recovery of bad/written-off investments and expected to have good result in the 2015 year end.

Capital ExpenditureDuring the year under review, the total capital expenditure on acquisition of �xed assets was Taka 20.38 crore which includes Taka 3.12 crore for Building, Taka 4.63 crore towards Furniture & Fixtures, Taka 10.59 crore for Of�ce Equipments & Computers and Taka 2.04 crore towards purchase of vehicles.

Non Funded InvestmentThe year under review, the bank had a collective effort in non funded business from the �rst day of 2014. The Bank undertook a target on foreign exchange business for the year 2014 for Taka 2,30,000.00 million and accordingly achieved 1,39,910.00 million which is 60.83% of global target. The bank successfully managed to earn a commission & exchange income of Tk.1188.38 million in 2014 against Tk. 1026.57 million of 2013. The growth rate of commission and exchange earning is (15.76%) over the previous years. Despite

of the volatility of foreign currency throughout the year 2014, the bank accumulated an exchange gain of Taka 620.83 million against Taka 471.29 million of 2013.

Income from Investment in Shares & SecuritiesThroughout the year, the country observed the capital market as unsupported, faded and lacking con�dence of the investors irrespective of corporate and individual. SIBL had an investment outstanding of Taka 7,823.73 million in Quoted & Unquoted Shares, Preference Share, Bond & Government Security against Taka 8,538.18 million of 2013. This year earnings from this segment has been recorded as Taka 296.95 million against Taka 325.47 million in 2013. Despite of the massive fall of capital market, the bank saved its portfolios successfully, however an amount of Taka 85.64 million has been decreased in fair value which was adjusted through pro�t & loss account for the period 2014.

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Signi� cant variance in operating results between Quarterly and AnnuallyDespite political turmoil and overall economic slowdown, SIBL was able to maintain a positive growth in Deposits, Investment and Foreign Exchange. The operating pro� t of the year 2014 was Taka 3964.27 against Taka 2894.06 million which is a growth of 36.98%. While analyzing the operating results by month to month and quarter to quarter, no signi� cant deviation was found. The operating results for the 4 quarters of the year 2014 are given below with remarks:

Fig in million Taka

Sl no Accounting Head 31.03.14 30.06.14 30.09.14 31.12.14 Remarks

1 Investment Income 3,143.96 6,605.18 10,117.41 13,943.26 4 quarters trend of the year 2014 shows no signi� cant deviation in results.2 Pro� t Paid on deposits 2,284.76 4,652.34 7,004.28 9,007.20 4 quarters trend of the year 2014 shows no signi� cant deviation in results.3 Net Investment Income 859.20 1,952.84 3,113.13 4,936.06 Operating results of 2nd ,3rd & 4th quarter slightly deviated from normal trend due to Investment yield was slightly increasing ( 12.57% to 13.74%) trend and decreasing trend of Cost of Fund (7.66% to 9.04%) 4 Income from Investment 46.79 146.23 225.80 296.95 Quarterly trend of the year shows deviation in results due to ef� cient dealing from capital market operation. 5 Commission, Exchange 291.12 654.46 975.94 1,188.38 4 quarters trend of the & Brokerage year 2014 shows no signi� cant deviation in results.6 Other Operating Income 35.25 122.95 175.35 289.49 4 quarters trend of the year 2014 shows an insigni� cant deviation in results due to increase in business volume.7 Total Operating Income 1,232.36 2,876.48 4,490.22 6,710.88 4 quarters trend of the year 2014 shows an insigni� cant deviation in results due to increase in business volume.8 Operating Expenses 548.29 1291.13 1,962.41 2,746.60 4 quarters trend of the year 2014 shows no signi� cant deviation in results.9 Salaries & Allowances 334.30 716.29 1,193.22 1,665.17 Sequence of the quarterly results seemed to be correct. Due to new pay scale, 2nd quarter results is slightly deviated. 10 Other Operating Expenses 213.99 574.84 769.19 1,081.43 4 quarters trend of the year 2014 shows no signi� cant deviation in results.11 Operating Pro� t before 684.07 1,585.35 2,527.81 3,964.28 4 quarters trend of the year provisions & taxes 2014 shows no signi� cant deviation in results.

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The Bank holds the major shares of these two subsidiary companies as mentioned below:

1. SIBL Securities Ltd. 99.99%

2. SIBL Investment Ltd. 99.99%

SIBL SubsidiariesSIBL Securities Limited: SIBL Securities Limited, a wholly owned subsidiary of SIBL, was incorporated as a Public Limited Company under the Companies Act, 1994 vide certi�cation of incorporation no. C - 85876/10 dated 20 July 2010 and obtained its certi�cate of commencement of business on the same day. SIBL Securities Ltd. is corporate TREC holder of Dhaka & Chittagong Stock Exchange Ltd. The company started its commercial operation in the month of January 2012. The principal place of business is the Registered Of�ce at 15 Dilkusha C/A, Dhaka-1000. The principal objectives of the company for which it was established are to carry on the business as stockbroker and stock dealer in relation to shares and securities transastions, other services related to the Capital Market and other activities as mentioned in the Memorandum and Articles of Association of the company. As on 31st December

2014, the company has made a pro�t after tax 24.78 million Taka as against Taka 32.03 million in 2013. Total paid up capital of this company is Taka 1230 million.

SIBL Investment Limited: SIBL Investment Limited, a wholly owned subsidiary of SIBL, was incorporated as a Public Limited Company under the Companies Act, 1994 vide certi�cation of incorporation no. C - 86726/10 dated 30 August 2010 and obtained its certi�cate of commencement of business on the same day. The principal place of business is the Registered Of�ce at 15 Dilkusha C/A, Dhaka-1000. The principal objectives of the company for which it was established are to carry on the business in relation to shares and securities transactions, to underwrite, manage and distribute the issue of stocks etc. and other services as mentioned in the Memorandum and Articles of Association of the company. Total paid up capital of this company is Taka 250 million.

Sl. No. Name of Subsidiary Companies % of holding of shares by the Bank

Particulars SIBL Off-shore SIBL SIBL Total Banking Unit Securities Ltd. Investment Ltd.

Income 6,443.99 266.89 87.56 - 6,798.43

Less: Inter-segmental Income - - - - -

Total Income 6,443.99 266.89 87.56 - 6,798.43

Operating pro�t (Pro�t before 6,443.99 266.89 87.56 - 6,798.43

Unallocated expenses and tax)

Allocated expenses 2,745.17 1.66 28.55 -0.12 2,775.27

Provision against loans and advances, others 656.76 - 13.88 - 670.64

Pro�t / (loss) before tax 3,042.29 265.22 45.12 -0.12 3,352.53

Income tax including deferred tax 1,403.79 - 20.35 - 1,424.14

Net pro�t 1,638.50 265.22 24.78 -0.12 1,928.39

Segment assets 147,386.50 4,493.90 1,454.96 249.95 153,585.31

Segment liabilities 147,386.50 4,493.90 1,454.96 249.95 153,585.31

Segment Analysis - Business SegmentFig in million Taka

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Contribution to the National ExchequerDuring the year under report, an amount of Taka 2,857.14 million has been contributed to the national exchequer against Taka 2,341.87 million in the year 2013 which is an increase of 22.00% over the previous years.

Graphical Presentation of Segment Information

Operating Revenue

SIBL0

20

40

60

80

100 94.79%

3.93% 1.29% 0%

Off-shoreBanking Unit

SIBL SL SIBL IL

Assets Employed

SIBL (95.96%)

Off-shore Banking Unit (2.93%)

SIBL SL (0.95%(

SIBL IL (0.16%)

Profit efre Tax

SIBL0

20

40

60

80

100 90.75%

7.91%1.35% 0%

ff oreankin nit

SIBL IL

Fig in million Taka

Particulars Year 2014 Year 2013

Corporate Income Tax 1403.79 806.76

VAT Collection at Sources 169.00 127.40

Tax Collection at Source 1203.83 1353.64

Excise Duty 80.52 56.37

Total 2,857.14 2,341.87

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Risk ManagementThe risk management of the Bank covers a wide spectrum of risk issues and the 6 (six) core risk areas of banking i.e. investment risk, foreign exchange risk, internal control & compliance risk, money laundering risk, ICT risk and asset liability management risks. To ensure sustainable and consistent growth, SIBL has developed sound risk management policies and framework as per Bangladesh Bank guidelines. The Board of Directors of SIBL reviewed all the risk management policies and frameworks during the year 2014. A Risk Management Committee (RMC) was formed consisting of 5 (�ve) members of the Board of Directors in 2013. Main objectives of the RMC are to ensure proper and timely risk management in every sphere of the bank. The Board has been made responsible for Identifying the risks and formulation of appropriate strategies to control inherent banking risks. The Committee submits decisions and recommendations to the Board on quarterly basis for further reviews and guidance in the interest of the stakeholders. To streamline the risk management system of the bank, a separate division called “Risk Management Division” has been formed where a Deputy Managing Director is working as Chief Risk Of�cer (CRO). The Division is staffed with some brilliant and young professionals for consolidated risk management. Besides that, a Management level Risk Management Committee is actively working to focus the entire risk management system of the bank. We are much concerned about the business risk and its proper management so that the risk and return could be optimized. Our policy envisages that the management would pay special attention to reduce the risk to an acceptable level apart from prudent controls over the Bank’s assets.

Business Risk AnalysisRisk is an integral part of �nancing business and thus every �nancial institution is exposed to risk of different types and magnitudes. So, the prime responsibility of every �nancial institution is to manage its risk such that its return from business can be maximized. As a prudent and responsible �nancial institution, the bank attaches top priority to ensuring safety and security of the �nances that are being extended.Risk Management for SIBL is performed at various levels of the bank. By formulating policy regarding

pro�t rate, market, liquidity, currency, operational as well as investment risk, SIBL manages its business risks and aims to mitigate them.

Credit/Investment RiskInvestment risk is one of the major risks faced by the bank which arises from the potential of failure of a counter party to perform according to contractual agreement with the bank. The factors involved here may be the unwillingness of the counterparty as well as adverse economic condition. To address the risks, SIBL follows a guideline on Investment Risk Management, which has been prepared in the light broad guidelines provided by Bangladesh Bank for the banking industry. The bank’s formulated investment policies in compliance with regulatory requirement covers investment assessment, collateral requirements, risk grading and reporting, documentation and legal formalities and procedures along with up to date clean CIB report of the client.The bank has incorporated a segregation of duty among the of�cers/ executives who are involved in investment activities to mitigate the risk to an acceptable level. A separate Corporate Division has been formed at Head Of�ce, which is entrusted with the duties of maintaining effective relationship with the customer, marketing of investment products, exploring new business opportunities etc. Moreover, investment approval, administration, monitoring and recovery function has been segregated. For this three separate units have been formed within the credit division namely Investment Risk Management unit (IRMU), Investment Administration Division (IAD) and Investment Monitoring & Recovery Unit (IM&RU). IRMU is entrusted with the duties of maintaining assets quality, assessing risk to lending, sanctioning investment, formulating policy and strategy for lending operation etc.

Operational RiskBangladesh Bank de�nes operational risk as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This operational risk also includes legal risks but not strategic and reputational risks. This can also arise from unexpected losses due to physical catastrophe, technical failure and human error in the operation of a bank, including fraud, failure of management, internal process errors and unforeseeable external events.

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Internal Control and ComplianceInternal control facilitates systematic and orderly �ow of various operational activities within the organization. To confront operational risk, SIBL follows “Internal Control and Compliance guidelines” which is approved by Bangladesh Bank. To ensure that sound monitoring system is placed inside the organization, Audit committee has been formed. Moreover, has introduced the “Internal Department (ICCD)” at Head Of�ce staffed with some experienced senior Bankers rest with the power and duties to train the employees of the bank, give direction, minor, audit and establish control on day to day operational procedures and statutory and non-statutory compliances.

Money LaunderingMoney laundering refers to a �nancial transaction scheme that aims to conceal the identity, source, and destination of illicitly-obtained money. To �ght with money laundering SIBL has framed an appropriate Money Laundering Prevention Policy Guideline so that it could be suf�cient enough to protect the bank from tribulations of money laundering. Besides that, a Central Compliance Unit (CCU) has been formed at Head Of�ce in SIBL and a designated person has been nominated to supply any information if required as per Money Laundering Prevention Act 2002 and Money Laundering Prevention circulars. Chief Anti Money Laundering Compliance Of�cer (CAMALCO) has been designated at Head Of�ce and Branch Anti Money Laundering Compliance Of�cers (BAMALCO) has been nominated at branches. The second man of the ninety four branches of SIBL have been complying the responsibility for their respective branches as Branch Anti Money Laundering Compliance Of�cers (BAMALCO) as per the direction of Bangladesh Bank.

Market RiskMarket risk refers to the risk of losses in on and off-balance sheet positions arising from �actuations in market prices. It arises due to change in different market variables like pro�t (interest) rate, exchange rate, availability of liquidity with the lenders/ depositors, prices of securities in the stock exchange. The risk arising from market risk factors such as interest rates, foreign exchange rates, and equity prices have been discussed below:

Risk on Rate of ReturnInvestment pro�t rate risk is the potential impact on the bank’s earnings and net asset values due to changes in market interest rates. This can arise due to mismatches between maturities of investment and funds, imbalance between supply and demand of fund for investment etc. Besides that, increase in pro�t rate results in subsequent adjustment on the deposit rates whereas the pricing of investments cannot be done instantaneously giving rise to such risk. Early repayment of investment, early deposit encashment/withdrawals are additional factors of such risk. The Asset Liability Committee (ALCO) of SIBL is the primary body which looks after and monitors investment pro�t rate structure. The committee also evaluates any market risk that arises from the regulatory pressure thus reducing the pro�t rate. Moreover, ALCO committee is always watchful to adverse movement of the different market variables.

Equity Financing RiskEquity �nancing risk is de�ned as loss due to change in market price of equity held by the bank. SIBL has signi�cant amount of investment in equity portfolio. To measure, identify and reduce this kind of risk, the bank practicing mark to market valuation of the share investment portfolios which was re�ected through the bank’s balance sheet as provisions for diminution in value of investment in shares. In FY 2013 the bank has made fair value adjustment of BDT 182.90 million on its quoted and unquoted equity investment.

Foreign Exchange RiskForeign-exchange risk refers to the potential for loss from exposure to foreign exchange rate �uctuations. This can be the current or prospective risk to earnings and capital resulting from adverse movements in currency exchange rates. Managing foreign exchange risk involves prudently managing foreign currency positions in order to control, within set parameters, the impact of changes in exchange rates on the �nancial position of the bank. Introduction of market based exchange rate of Taka has resulted in both trading opportunities and associated foreign exchange volatility risk. SIBL adopted foreign exchange risk manual and investment guideline of Bangladesh Bank to identify

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and combat the foreign exchange risk. International department of the bank independently conducts the transactions relating to foreign exchange is responsible for veri�cation of deals and passing entries. Besides that, the bank’s Internal Control and Compliance Division performs internal audit to supervise the activities of the foreign exchange departments which measures the effectiveness and ef�ciency of the division.

Liquidity RiskLiquidity risk is the probability of loss arising from a situation where there will not be enough cash and/or cash equivalents to meet the needs of depositors and borrowers, thus sale of illiquid assets will yield less than their fair value. This also arises when the cushion provided by the liquid assets are not suf�cient enough to meet maturing obligations. Liquidity risk is often triggered by the consequences of other �nancial risks such as credit risk, interest rate risk, foreign exchange risk, etc. For instance, a large loan default or changes in interest rate can adversely impact a bank’s liquidity position. SIBL’s Asset Liability Committee (ALCO) is entrusted with the responsibility of managing short-term and long-term liquidity and ensuring adequate liquidity at optimal funding cost. ALCO also reviews liquidity requirement of the bank, the maturity of assets and liabilities, deposit and lending pricing strategy and the liquidity contingency plan.

Reputation riskReputation risk may arise from the possibility that negative publicity regarding the bank and its business practices, in the territory or elsewhere through related entities, whether accurate or not, will adversely impact the operations and position of the bank. Reputation risk may also arise from an institution, or an af�liate, being domiciled in a jurisdiction where the legal and organizational framework for the regulation and supervision of �nancial institutions is generally viewed as failing to meet international standards for the protection of consumers of �nancial services and for the prevention of sheltering the proceeds of organized crime. Reputation risks are very dif�cult to measure but signi�cantly important to manage since many new banks have created the market more competitive ever before.

Correspondent Banking RelationshipIn order to facilitate the Foreign Exchange (FX), Foreign Trade and Other Foreign Currency (FCY) Business and Transactions, International Division of the bank maintains af�uent Correspondent Banking Relationship with almost all the major and renowned banks at home and abroad. International Division comes forward to play its role and not only felicitates foreign trade but also works for the development and enhancement of foreign correspondence relationship. The well experienced and dedicated team of the division has established Standard Settlement Instructions (SSI) including Drawing and Telegraphic Transfer (TT) arrangements in all major currencies in the locations of international business concentration. The bank maintains 23 NOSTRO accounts in major international currencies with reputed international banks for the settlement of all the foreign currency transactions of our customers. As a part of its growth, International Division has been constantly developing and improving the af�liation with foreign correspondent banks on reciprocal basis.

Alternative Delivery Channel (ADC) Social Islami Bank Limited believes in keeping abreast with latest technology in order to provide our customers with convenient and time saving solutions which ensure banking transactions anytime and anywhere.

The Alternative Delivery Channel (ADC) Department of the bank is relentlessly working hard for the development and integration of all technology based delivery channels for the banking products and services. The department also plans and ensures smooth operation of service delivery though ATM’s, CDMs, Web systems, SMS and mobile phones etc. and enhance areas of delivery of customized services through these channels. The Department ensures the operation of inland remittance service using all delivery channels and also ensures quick and secure delivery of foreign remittance as well using as much delivery channels as necessary to make local and foreign remittance payments attractive, useful and popular.

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SIBL CardsTo provide advanced and enhanced banking facilities to our valued customers SIBL has introduced both Debit & Credit cards of VISA brand. At present, we have the following categories of cards

• VISA Ismaic Debit Cards • VISA Islamic Credit cards (Local Card, Dual Currency

Card)• VISA Islamic Prepaid Cards > Gift Card, Hajj Card, Travel Card

Our duel credit cards are now accepted worldwide and cardholders have access to all ATMs & POS all over the world having VISA Logo.

We have already setup and installed 19 ATMs of our own in different locations of Bangladesh. Besides, our cardholders also have access to more than 1000 ATMs all over the country as a member bank of Q-cash. We are working to introduce POS at different Merchant Outlets of the country for the satisfaction of our valued customers.

Our continuous endeavor is to enhance service quality and product diversi�cation for ensuring customer satisfaction all the times.

Centralized Trade Processing Unit (CTPU)SIBL has established Centralized Trade Processing Unit (CTPU) for serving customers in a more effective and ef�cient way. For the branches around Dhaka Division and Chittagong Division, two base stations have been established at Foreign Exchange Branch, Dhaka and Agrabad Branch of Chittagong respectively.

All the branches under CTPU Dhaka and Chittagong are able to serve their clients through these base stations. As a result, processing becomes faster and ef�cient. It has established the concept of any branch banking.

Centralized Remittance Processing Unit (CRPU)Social Islami Bank is in continuous effort to encourage expatriate Bangladeshis living abroad for remitting funds through banking channel. In this regard the bank has

established remittance drawing arrangements with reputed exchange houses/ money transfer companies around the world. At present the bank is providing remittance service channeled through Western Union, commonly known as the money transfer giant having its presence in 240 countries with 3,50,000 agents around the world. SIBL has a very dedicated and ef�cient team to source remittance business as well as to ensure prompt & ef�cient services to the Customers offering best competitive price for their hard earning Foreign Currencies. Consequences upon different initiatives taken by last one year, SIBL’s Foreign Remittance business volume has triggered to Taka 7839.90 milion in 2014 compared to Taka 6740 million in the year 2013.

SlBL handles both inward & outward Remittance products. The outward Remittance includes FC Cash. FDD. FTT & wire Transfer through SWIFT, The Inward Remittance products are Over the Counter Payment (OTC), Account Credit to all bank all branches. FTT. wire Transfer through SWIFT etc. We have a strong Remittance Settlement Network with different associate Banks, BEFTN & NGOs which cover more than 9.000 remote locations besides our 94 strategic Branch locations throughout the Country. We have an admirable Remittance Tie-up with a good number of world’s renowned Exchange Houses namely Western Union Money Transfer. Xpress Money Services, MoneyGram. Placid NK Corporation USA. UAE Exchange SDN BHD, NEC Money Transfer, Purushottam Kanji Exchange, KMB International Money Transfer, Aussie Forex. Lotus Forex, Asia Express Exchange, Doha Exchange, United Bank Ltd., Zen) Exchange Co. etc and different Banks throughout the World to facilitate the Remittance services to the bene�ciaries. The bank is continuously endeavoring to increase its remittance network and to connect new destinations in places of concentration of expatriate Bangladeshis. In this regard the bank shall give due emphasis to Gulf Cooperation Countries (GCC) in the Middle East and Saudi Arabia The bank has also established a special arrangement with Bangladesh Post Of�ce in order to increase its delivery channel and for the distribution of foreign remittance taking the advantage of their wide network spread across the country. The devoted and enthusiastic personnel of 94 branches of the dank have ensured a privileged service for its customers. Besides, a Centralized Remittance Processing Unit (CRPU) has been set up to improvise and monitor the remittance service. The centre is equipped with skilled and experienced work team along with modern and sophisticated software.

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Off Shore BankingSocial Islami Bank Limited is operating off-shore Banking Units as a separate business unit under the rules and guidelines of Bangladesh Bank Defying the probability in the global �nancial market, SIBL OBU has scored a sizeable pro�t in the �rst year of its operation. We hope these units will play a vital role in the foreign trade business and facilitate the valued customers by maximizing their bene�t. In the year 2014, the OBU has accumulated a Net Pro�t after Tax Taka 26.52 crore against Taka 3.81 crore in 2013.

Centralized Clearing Unit (CCU)Bangladesh Automated Clearing House (BACH) started its LIVE Operation on the 7th October ‘ 2010 for Bangladesh Automated Cheques Processing System (BACPS) and 28th February, 2011 for Bangladesh Electronic Fund Tranfer Network (BEFTN) in order to make quick remittances in the whole Bangladesh. Since its inception SIBL participated in BACH successfully with the cooperation of Bangladesh Bank. For more ef�cient and smooth functioning of the activities of BACH, SIBL formed an independent unit in November 2011 under the control of Head Of�ce named as Centralized Clearing Unit (CCU) where some dedicated, sincere and ef�cient of�cers are working with an organizational zeal.

At present, all the 100 branches of SIBL have participated in BACH by which the remote branches now collect their cheques within 1 day and can make payment to the customers very quickly. All branches of SIBL are remitting the funds of customers by originating credit entries to other banks through BEFTN and received inward credit entries from other banks which are crediting in the accounts of the customers in the same day by the CCU through Online. Constant efforts are continuing by the CCU, SIBL to boost all the �nancial transactions under BACH.

Related Party TransactionRelated party refers to the controlling entity (either directly or commonly) or controlling individual or close group/family member of such entity or individuals who have substantial in�uencing power in management of a particular organization. Whereas related party transactions refer to those transactions with the entity / person as stated by way of transfer of resources, services regardless of whether a price is charged. Disclosure on related party transactions with the Social Islami Bank Limited have been provided in the audited accounts part in note no 46 A. During the year under review, 6 (six) numbers of Investment accounts were recorded under ‘related party transaction’ category of whose total outstanding amount as on 31.12.2014 was Taka 284.88 million compared to Taka 53.63 million in 2013. Out of 6 (six) transactions, 5 (�ve) were related to Director’s concern of whose value was Taka 184.88 million and rest of the amount of Taka 100.00 million was related to SIBL subsidiary company called SIBL Securities Limited.

Credit RatingEmerging Credit Rating Limited (ECRL) has af�rmed AA- (Pronounced as double A minus) long term credit rating and ECRL- 2 short term credit rating to the Social Islami Bank Limited based on audited �nancials of 2014 and other available information up to the date of rating declaration. The outlook on the rating is Stable. The ratings are consistent with ECRL’s methodology for this type of company. ECRL considered �nancial performance, capital base, asset quality, liquidity position, management experience and prospect of the industry while assigning the rating. The assigned rating re�ects the strengths of the Bank which is backed by signi�cant growth in earnings, deposits and investments, adequate capital coverage with high tier-I capital, improved asset quality and well controlled liquidity position.

Credit Rating Summary

Date of Valid till Rating Long Term Short Term Outlook Declaration Action Rating Rating

May 29, 2013 May 28, 2014 Initial AA- ECRL-2 Stable

April 22, 2014 April 21, 2015 Surveillance AA- ECRL-2 Stable

March 16, 2015 March 15, 2016 Surveillance AA- ECRL-2 Stable

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Foreign Exchange BusinessForeign Exchange Business stood at Tk. 139910.00 million in 2014 against Tk. 132374.70 million in 2013, which is sharp increase of 16.32%. The break-up of this foreign exchange business is as under

(Fig in million Taka)

One of the core activities of the bank is to facilitate International Trade through export and import �nancing. Over the last few years, the foreign trade �nancing of the bank has gained a stable expansion. The bank has been achieving signi�cant growth in both export and import �nancing despite/since global �nancial turmoil and worldwide economic slowdown since 2008. During the year, the foreign trade business of the bank has recorded a signi�cant growth of 16.32%. Import business Increased by 6.99% percent of which real value was Taka 79024.20 million in 2014 from Taka 73,859.40 million in 2013. On the other hand export business grew to Taka 53044.90 million in 2014 which is 2.45% percent higher than the export of Taka 51,775.30 million in 2013. The bank has 13 Authorized Dealer Branches well equipped with highly trained professionals to meet different requirements of import and export based clients. The bank was involved in �nancing import business in the �eld of capital machineries, industrial raw materials, food grains (rice, wheat, sugar, dal, garlic, onion, spices), oil (soya bean, palm, lubricant), motor vehicles, spare parts, garment accessories, sports items, perfumery items, chemicals, milk food etc. whereas the export was conspicuous in the �eld of ready made garments. The bank has been endeavoring to diversify its export �nancing in other �elds like leather, agricultural products, dry �sh, PET Flakes, spare parts of ships etc.

In order to facilitate trade �nance, establishing of ‘Central Trade processing Unit (CTPU)’ was a timely decision and has changed the total process of foreign exchange business through speed up of the service and business potential of SIBL. We have CTPU facilities based in Dhaka and Chittagong.

International Trade Financing (Export & Import)

Human Resource is the corner stone for accelerated and sustained development of any organization. The Bank recognizes the importance of skilled Human Resources for overall growth of the Bank. The meritorious and talented human resources team is the key for continuous development of the organization. Superior human resources are an important source of competitive advantage. To attract talented human resources team and to create brand image the bank have been formulating and executing HR systems—HR policies and activities—that create employee competencies and behaviors which the Bank needs to achieve. The Bank has been trying to ensure maximum output with minimum resources. So quality manpower with good academic background is being recruited in all levels of the Bank every year for rendering quality services to its customers. SIBL has opened 6(six) new branches in the year 2014 and become the Bank of 100 Branches. For this reason a good time was spent on recruitment of experienced Bankers. Besides that, the recruitment process of Probationary & Trainee Of�cer for the Bank has been initiated. The total manpower strength of the Bank was 1922 as on 31.12.2014.

SIBL is an employee welfare-oriented organization. For this reason, the management of the Bank always tries to sort out all possible ways it deems bene�cial to promote its employees’ professional skill and ef�ciency. It has its own Training Institute, which rendered useful training to 1121 employees last year. Eminent Bankers, scholars, and other resource persons were invited to deliver lectures. Besides, our personnel are sent to Bangladesh Bank Training Academy, Bangladesh Institute of Bank Management, Bangladesh Association of Banks, Bangladesh Foreign Exchange Dealers Association, the Central Shariah Board for Islamic Banks of Bangladesh and many other reputed institutions of the country for training on regular basis. 510 employees from the Bank obtained training from outside including BIBM in 2014 compared to 386 in 2013. Subsequently, it is seen that good performance is rendered by the employees who got trained. Besides that during the year under review, Social Islami Bank Training Institute itself had conducted 5(�ve) foundation training courses for total 182 nos. of fresh Of�cers and 25 Training, workshops and Seminar on different contemporary issues related to banking industries where 939 nos. different Of�cers and executives had participated.

Human Resource Development

Particulars 2006 2007 2008 2009 2010 2011 2012 2013 2014

Import 11791.00 13482.3 18343.80 22753.3 39459.50 68198.50 76985.60 73859.40 79024.20

Export 10714.00 9961.60 12674.30 14433.20 21372.20 34975.00 42712.20 51775.30 53044.90

Remittance 775.00 459.90 2341.10 1923.50 1099.40 5134.90 6822.10 6740.00 7839.90

Total 23280.00 23903.80 33363.20 39110.00 61931.00 108308.30 126519.90 132374.70 139910.00

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Management of the bank has emphasized and specially focused on the development of employees and to bring out the persons’ insider instinct into light, SIBL Training Institute (SIBL TI) has been restructured aiming to create leaders.

SIBL is sincere to address its employees’ health problems. The bank has appointed one full time doctor for the employees of Head Of�ce and Dhaka city branches. SIBL placed First Aid Box in its premises to provide instant medical facility for all employees as and when needed. We have help desk, who are always besides to their ailing colleagues and their family members for proving all kinds of supports including pecuniary facility under SIBL Employees’ Superannuation Fund and CSR.

In order to evaluate the level of ef�ciency, improve the healthy competition among the employees and in a way to generate motivation for the employees, Employees’ Performance Evaluation and Key Performance Indicator (KPI) have been introduced from time to time. Upon the evaluation, the employees are motivated and awarded with promotion, accelerated promotion and other bene�ts. In addition to that, various types of drives are taken to keep and upgrade the standard of the Bank.

Demographic distribution of manpower of SIBLGender breakdown by age group for permanent employees : Gender diversity among permanent employees:

Age range Gender 2014 2013 2012 2011

< 30 years Male 384 393 328 246

Female 95 97 71 51

30-50 years Male 1142 1043 992 860

Female 218 196 173 152

> 50 years Male 81 71 60 65

Female 02 02 01 01

Total 1922 1802 1625 1375

Employee Gender 2014 2013 2012 2011CategoryEntry level Male 915 901 951 727 Female 189 177 166 122Mid level Male 581 506 359 361 Female 121 114 77 80Senior Male 111 100 70 83Management Female 05 04 02 2Total 1922 1802 1625 1375

Sl No. Title Number Total Participants

A. Training Courses

01 Foundation Course in Banking for PO 2 90

02 Foundation Course in Banking for AO 3 92

03 Training on Trade Finance 3 106

04 Islamic Banking Operation : Procedure in view of Shari’ah Perspective 3 97

05 Inward Foreign Remittance Products of SIBL 1 38

06 Foreign Exchange Transaction Monitoring 1 31

07 Group Limit Management 4 155

08 Total 17 609

B. Workshops & Seminar

01 Proper Reporting on SBS-II & III 2 106

02 CIB On-Line Project of Bangladesh Bank 4 101

03 E-Tendering Procedure of e-GP, CPTU, Ministry of Planning 1 21

05 Overview of CAMLCO Conference 2014 with Implementation procedure of goAML Software 1 92

06 2 88

07 IT Security and Penetration Testing 1 43

08 Real Time Online Billing System of WASA 1 28

09 Core Risk Management and Investment Classi�cation and Provisioning 1 33

Total 13 512

Grand Total (A + B) 30 1121

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The nature of the Provident fund is 10% contributory from the both side of the employee and employer. The eligibility of such Provident fund is 5 years whereas the eligibility of the gratuity fund to the employee is equivalent to 1 basic pay for 5 years services & equivalent to 2 basic pay for 7 years services.

Employee Bene�tsSocial Islami Bank Limited is very keen to establish and retain a very congenial working atmosphere. The bank has a competitive & unique pay structure for its employees and always keep track on the necessity of revision on the passage of time that matches with the living standards of the employees in one hand and competitive with other banks on the other hand. At present, SIBL offering three types of long term employee bene�ts of which Provident Fund and Gratuity Fund are approved by the Revenue Board and are funded liability for the bank. As on 31.12.2014, suf�cient provisions have been provided in the �nancial statements of the bank for these two employee bene�t funds as per International Accounting Standard 19 Accounting for Employee Bene�t. Apart from these two, another welfare fund called “SIBL Employyes’ Supperannuity Fund’ has been maintaining solely for the purpose of welfare of the employees of the bank. All these funds are governed and maintained by separate trustee board and funds are investing in very safe mode. Given below is the position of the employee’s bene�t funds:

Fig in million Taka

Particulars 2014 2013

Social Islami Bank Pro�t Dependent Employees’ Provident Fund 646.88 506.93

Social Islami Bank Employee’s Gratuity Fund 364.29 294.26

SIBL Employees’ Supperannuity Fund 60.59 47.64

Total 1071.76 848.83

Description Yr-2014 Yr-2013 Yr-2012 Yr-2011 Yr-2010 Yr-2009 Yr-2008

Total number of employee 1922 1802 1625 1375 1252 950 750

Total number of Branches 100 94 86 76 64 52 28

Employee per branch (nos) 19 19 19 18 20 18 27

Deposit per employee (million Tk) 64.79 56.52 57.60 48.52 35.82 33.25 32.13

Investment per employee ( million Tk) 56.14 47.65 46.78 39.21 29.30 27.98 26.60

Operating pro�t per employee (million Tk) 2.06 1.62 2.23 2.01 1.31 1.12 1.05

Salaries & Allowances per employee ( million Tk) 0.87 0.83 0.67 0.66 0.51 0.43 0.44

Salaries & Allowances as percentage 42.00% 52.32% 30.09% 32.66% 38.90% 37.39% 41.96% of Operating pro�t

Safety MeasuresSocial Islami Bank Limited provides world class of�ce environment to its employees. Every branch of SIBL is homogenously decorated with the provisions of air condition, most modern safety of�ce equipment and machines and well structured of�ce building facilitated by sewerage and electricity connection and security measures like

Human Resource AccountingHuman resource Accounting is the process of identifying and reporting the Investments made in the Human Resources of an organization that are presently not accounted for in the conventional accounting practices. Social Islami Bank Limited formally does not practice Human Resources Accounting but regularly works out and looks into some important areas for mathematical and co-relational understanding on the main business factors. Given below is the considerable index to the management on which human related decisions are taken:

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24/7 close circuit TV camera, well trained security and gunmen, �re extinguishers etc. Design of Of�ce / Branch is considered on the basis of suf�cient free space, safe sewerage gas and electricity connections etc. SIBL has the �nest corporate Head Of�ce at its own Of�ce premises of 90/1 Motijheel Commercial Area, Dhaka, City Center level 19, 20, 21 & 22 measuring areas of 5,3153 sft. featured by most modern facilities. Fire drill programs are organized by the bank at different locations time to time. As on date of report, the bank has appointed one full time doctor for the employees of Head Of�ce and Dhaka city area. Moreover, the Board of Directors has already approved an Insurance policy including hospitalization bene�t for the general emplyees of the bank.

Information and Communication Technology The Bank is pioneer amongst the Islami Banks to introduce online banking facilities for its customers. Now a day, ICT plays an important role towards processing and management of bulk amount of data, facts and �gures. Upon introduction of Islamic Banking Version of Integrated ‘Ababil’ software, SIBL has been providing IT oriented �nest service to its valued clients. Ababil is a core and centralized banking software to provide the clients easy and readymade service as and when required. This software has enabled the bank to reach to our clients to their doorsteps by smooth and easy online banking service like E-Banking. Our customers are able to bank through internet and do their banking activities faster and ef�ciently. Our accountability to our clients are fair enough to build a relationship of trust.

Any Branch Banking Online transaction facilitates ‘Any Branch Banking’ to all customers meaning, customer is able to deposit or withdraw money from any Branch of SIBL nationwide. Any Branch Banking is a facility for our customers to operate their accounts from any of our network branches.

Internet Banking Internet banking is a success for Social Islami Bank Limited. Internet banking refers to banking operations carried out between banks and their clients through Internet. Internet banking helps in expediting banking operations, reducing the cost and ensuring that customer can utilize various banking services from their living room or even while traveling thousands of miles away from their home. The process of Internet banking begins with every customer being given a unique user name and password by the bank. The customer can log on to the bank’s web site with the user name and password to access to his or her bank account sibl@ibank with a view to provide web-based Internet Banking services to its customer from anywhere anytime. Under this service, customers can check their A/c balance, print A/c statement, place cheque book request, inquire cheque status, transfer fund with allied accounts and also pay utility bills. SIBL has stepped forward in boundary less banking services, any where,

any time in which specially valued expatriate Bangladeshi wage earners living and working in different countries can now check their accounts with SIBL and perform various transactions which shall ease their anxieties. SIBL is promising to become the best technology friendly bank in the country and shall use all modern banking channels to deliver most wonderful and satisfying services to its valued customers.

SMS Banking SMS Banking is a mobile technology that allows customer to request and receive banking information from bank on customer mobile phone via Short Message Service (SMS). Individuals or corporate bodies can manage their Bank Accounts, check their account balances and last few transactions (Mini Statement) using their mobile phones. Customers can also have SMS alert/ noti�cation for any �nancial transaction done on their account as well as activate their Debit / Credit Card through SMS. The Bank has recently signed Memorandum of Understanding (MOU) with Semicon Private Limited to provide SMS Banking services to its customers.

IP Phone “Connecting People with a Single Click”

SIBL believes that modern communication devices are the best option to minimize the communication cost and allow the bank to build effective relationship with its clients and staffs. The bank has recently installed IP PHONE solution which simpli�es voice & video communications at branches and at head of�ce level for all. These solutions have minimized the communication cost in one hand and surprisingly enhanced the means of effective communication system of the bank on the other hand.

ATM Network SIBL’s customers have been enjoying 24/7 service through ATMs located around the country. The Bank has undertaken some programs to expand its ATM network through procurement of more proprietary ATMs and joining hands with the common platforms of ATM network.

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Online Data Centre (DC) & Disaster recovery (DR)SIBL has the largest Data centre running with secured AIX operating system. All data are stored in this data centre and branches get uploaded with this data center automatically from remote site. The bank has established a separate Disaster Recovery (DR) Center following the Bangladesh Bank guideline to protect the bank’s information properties.

Data SecurityA 24 hours dedicated surveillance team is working to ensure the data security of the bank. Maximum security layers are in place while transacting in Core banking System, Internet Banking (IB) transactions, SMS banking etc.

Managing Information Technology Risk IT risk is the business risk associated with the use, ownership, operation, involvement, in�uence and adoption of IT within an enterprise. Risks surrounding Information Technology, such as network failure, lack of skills, hacking and viruses and poor system integration have the potential to have a negative impact on an organization. To retrieve data in any crucial moment, the bank has established a

Disaster Recovery Center (DR Center) at Uttara, Dhaka as per Bangladesh Bank guidelines. SIBL has the largest Data centre in banking sector running with secured AIX operating system. All the data are stored in this data centre & branches are also uploaded the data automatically. Here another replica of live system, located in distant premises, with same capacity like Production system, is running 365 x 24 continuously without any pause. SIBL, always endeavors to improve the service quality all of its departments and branches to excel the optimum output by ensuring customer satisfaction.

Green Banking Support SIBL is concerned to implement the concept of Green Banking in its day to day banking business. The bank has introduced e-statement which has remarkably reduced the usage of hard copy. This statement is generated by the system and sent to the customer automatically at speci�ed interval with full authentication and security. Launching of E-statement is a process to support the concept of Go-Green to save the natural environment. SIBL is using the most energy ef�cient IT equipments like IBM Rack Server which consumes less power, less space with maximum capacity. Most of the documents of the banks are converted into softcopy.

Social Islami Bank Ltd. (SIBL) is the only Bank in Bangladesh, perhaps in the world that incorporated the three-tier banking model (formal, non-formal & voluntary) in its Memorandum and Articles of Association. Since Inception in 1995, SIBL is working in Voluntary and Non-Formal sectors of the country in addition to Formal Banking for achieving a goal of participatory economy for a caring society. Formal Sector deals with general commercial activities as a scheduled Bank, Non-formal Sector aims at “Empowering Family”- by creating investment opportunities to the mass community through its (i) Famity Empowerment Micro-Finance Program (ii) Family Empowerment Micro-Enterprise Program & (iii) Small and Medium Enterprise (SME) Program and Voluntary sector deals with Cash Waqf Certi�cate Scheme, Mosque and Waqf Properties Development Program and CSR activities on voluntary basis.

In an effort to achieve the corporate objective of poverty alleviation, in line with the decision of the Board of Directors in its 321st meeting held on 29th September 2014, a new Division in the name & title “Voluntary & Non-Formal Banking Division” has started functioning as under:

Non–Formal Sector

SIBL has selected 15 (�fteen) rural branches for its Family Empowerment Islamic Micro-�nance Program (FEIMP). Initially, the program shall be started in 05 (�ve) designated branches. A number of skilled manpower are being recruited for the program. In the meantime, SIBL has already approached Islamic Development Bank (IDB) for availing a low cost fund to make the program affordable for the bene�ciaries as well as sustainable in the perspective of the Bank.

Deputy Managing Director/Additional Managing Director

Managing Director

Voluntary & Non-Formal Banking Division, Head Office

MIS, Accounts & Monitoring Unit

Family Empowerment Islamic Micro-finance Program

Awqaf Property Development Program

Approval Unit

Head of Voluntary and Non-Formal Banking

Other Activities !

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SME Outstanding

2010 2011 2012 20130

5000

10000

15000

20000

25000

2014

1703.54370

6868.8 7164.3

21399.8

SME Operations of the Bank in 2014

(Figu

80%

20%

re in million Taka)

SME & Agre Investment- 21349.80

Other Investment - 87361.90

This three-tier banking model of SIBL is an innovation which brings a new dynamic in welfare banking targeting poverty alleviation of the marginal people of the country with a motto of “Working Together for a Caring Society”.

SIBL has been focusing on the �nancial inclusion by expanding the volume of investment in Micro, SME and Agricultural sector keeping in view the green banking initiatives of Bangladesh Bank.

SME PROGRAM OF SOCIAL ISLAMI BANK LIMITED

Social Islami Bank Limited (SIBL) has been successfully operating Small and Medium Enterprise (SME) Investment with a view to unlock the potentials of the missing middle, who are not properly addressed by the Corporate Banking Sector. SME has emerged as the “Engine of Growth” in the economy of Bangladesh. It contributed manifold including industrial growth, resource generation, poverty alleviation, employment generation and value addition. SME & the Nation are now growing together.

SME is considered as one of the focus areas of operation in SIBL. SMEs clients are being served in all of SIBL’s branches situated both in rural and urban areas. Likely, SME is considered as one of the focus areas of operation in SIBL. SMEs clients are being entertained by all branches situated both in rural and urban areas. Total investment portfolio of the bank has been segregated into 3 major aspects e.g Corporate, SME & Retail. Such segregation has been made in line with the de�nition and Guidelines of Bangladesh Bank.

SME operation of the Bank is in progress in a structured manner. SME & Agricultural Finance Division has been functioning in three separate units e.g Approval Unit, MIS & Reporting Unit and Monitoring & Recovery unit. These units have been performing with speci�c Terms of Reference (TOR). Administration function (including Disbursement, Documentation, compliance etc) is performed under separate Investment Administration Division at Head Of�ce.

In line with the Prudential Guidelines on SME ¬Financing of Bangladesh Bank, SIBL has designed an array of SME products for both small and medium segments. SIBL offers both revolving and term investment facilities to the SME clients. Small entrepreneurs, agricultural clients, and women entrepreneurs are properly addressed by SIBL with the diversi¬�ed products designed for this purpose.

SIBL has been achieving a continuous and upward growth in SME portfolio over the last several years. As of 31st December 2014, SME portfolio holds 20% share of the global investment portfolio of the Bank amounting to Tk. 21349.80 million compared to Tk. 7164.30 million in 2013. Such tremendous growth has been possible due to proper

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and timely guidance of prudent members of the Board of Directors of SIBL and initiatives of the Management along with team effort.

SME portfolio of the bank has been increasing signi�cantly, which is shown in the following table and graph.

(�gure in million Taka)

Year SME Outstanding

2010 1703.50

2011 4370.00

2012 6868.80

2013 7164.30

2014 21399.80

SIBL has been able to create job opportunities among the signi�cant micro and SME borrowers. Many of them have been able to establish them as successful entrepreneurs. It will keep on continuing the efforts of diversi�cation of SME portfolio focusing on clients’ need while giving emphasize on green initiatives.

The Bank offers both Revolving & Term Investment facilities to the SME clients. Small Entrepreneurs, Agri. clients and Women Entrepreneurs are properly addressed by the diversi�ed products designed for this purpose.

SIBL as part of its social commitment will keep on patronizing the SME clients to ful�ll their diversi�ed needs.

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conformity with the Shariah and the Cash Waqf amount will earn pro�t at the highest rate offered by the Bank from time to time.

• The waqf amount will remain intact and only the pro�t amount will be spent for the purpose(s) speci�ed by the Waqif. Unspent pro�t amount will automatically be added to waqf amount and earn pro�t to be grown over the time. No cheque book will be issued in this account.

• Waqif may also instruct the Bank to spend the entire pro�t for the purpose speci�ed by him/her.

• Waqif has the opportunity to create cash waqf at a time. Otherwise he/she may declare the amount he/she intends to build up and may start with a minimum deposit of Tk. 1,000/= (one thousand) only (or equivalent foreign currency). The subsequent deposits shall also be made in hundred or in multiple of hundred Takas. However, General Cash Waqf A/Cs (where name of bene�ciary whether Individual(s) or Institution(s) are not mentioned) may be opened by depositing a minimum sum of Tk. 1,000/= only. Speci�c Cash Waqf A/Cs (where name of bene�ciary whether Individual(s) or Institution(s) are mentioned) by depositing a minimum sum of Tk. 5,000/= & above.

• Waqif shall also have the right to give standing instruction to the bank for regular realization of cash waqf at a rate speci�ed by him/her from any other A/C maintained with SIBL.

• Cash waqf shall be accepted in speci�ed endowment Receipt Voucher and a Certi�cate for the entire amount shall be issued as and when the declared amount is built.

• Accounts of Cash Waqfs are maintained in a separate ledger and necessary charges as per rules may be deducted therefrom.

• In case of any change of address of the Waqif or bene�ciary, must be informed by the Waqif to the Bank immediately.

• Bank however reserves the right to regret to open any Cash Waqf Account.

• The rules of Cash Waqf Account are subject to amendment in conformity with the Shariah at any time by the Bank.

Mentionable, we have recorded an amount of Tk. 99.30 million as on 31st December, 2014 in Cash Waqf Fund which was Tk. 84.60 million in the previous year, registering a growth of 17.38% than the preceding year.

Voluntary Sector:Cash Waqf ProgramIn the Voluntary Sector, SIBL has introduced Cash Waqf Program, a new product for the �rst time in the history of Banking.

This scheme has been well received by the public in general for its unique features. SIBL as a pioneer of this innovative �nancial product has received both Local & International accreditation. Meanwhile, the Cash Waqf Program has been replicated by some local banks including Islami Bank Bangladesh Limited, Jamuna Bank Limited, Shahjalal Islami Bank Limited & EXIM Islami Bank Limited. As a result of successful replication, many people are being bene�ted by the beauty of Cash Waqf Program.

By opening a Cash Waqf Deposit A/C some one can get an opportunity to do welfare to the mankind through Sadake-Jariah. SIBL urges to all religious & af�uent persons of the society to come forward to mobilize Cash Waqf Deposit so that the pro�t may be utilized for the well being of mankind.

Modus Operandi of Cash Waqf program

• Cash waqfs shall be accepted as endowment in conformity with the Shariah. Bank will manage the waqf on behalf of the waqif.

• Waqfs are done in perpetuity and the account shall be opened in the title given by the waqif.

• The 32 purposes under 4 major �elds like (1) Family Rehabilitation (2) Education & Culture (3) Health & Sanitation (4) Social Utility and (5) Others are considered as General Guidelines for distribution of pro�t of Cash waqf A/Cs. In the case, where only �elds(s) for distribution of pro�t are mentioned without specifying the name of the bene�ciary(s) whether individual(s) or institution(s), those Cash Waqf will be treated as General Cash Waqf and the pro�t of those A/Cs will be spent for welfare of mankind in the �eld of (1) Family Rehabilitation (2) Education & Culture (3) Health & Sanitation (4) Social Utility and (5) Others. On the other hand, Waqif may choose distribution of the pro�t to any speci�c individual(s)/ institution(s). Those A/Cs will be treated as Speci�c Cash Waqf, the pro�t of those A/Cs will be sent to the bene�ciary(s) as speci�ed by the Waqif.

• The amount deposited in the Cash Waqf A/Cs will be invested as per Bank’s own decision in

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Corporate Social ResponsibilitySIBL has been responding spontaneously to its social commitment. As part of Corporate Social Responsibility (CSR), welfare activities of Social Islami Bank Limited (SIBL) are being carried out mainly from (1) Pro�t of Cash Waqf Fund (2) Compensation Fund (3) Doubtful Income and (4) Zakat Fund.

SIBL is a pioneer of Cash Waqf Program which has meanwhile achieved both local & international accreditation for its unique welfare approach. Cash Waqf Program of the Bank paved the way for doing welfare to mankind in various sectors such as (i) Family Rehabilitation (ii) Education & Culture (iii) Health & Sanitation and (iv) Social Utility and others in conformity with Shariah. Cash Waqf is broadly categorized as a) General Cash Waqf & b) Speci�c Cash Waqf. Where the Waqif (Donor) doesn’t mention the name of bene�ciary (may be individual or organization) for receiving the pro�t of Cash Waqf fund, we call those General Cash Waqf. In case of Speci�c Cash Waqf, the Waqif (Donor) specify the name of speci�c bene�ciary (may be individual or organization). Pro�t of General Cash Waqf A/C are being sent to FAD, HO annually & pro�t of Speci�c Cash Waqf A/C are being sent to the speci�c bene�ciary as per instruction of the Waqif once annually.

Social Islami Bank Ltd. is extending �nancial help to different orphanages, schools, madrashas, social organizations & individuals who are suffering from fatal diseases like cancer, kidney failure, heart diseases etc. from the fund which are being accumulated from the pro�t of Cash Waqf Fund, Compensation Fund, Doubtful Income and Zakat Fund.

Bangladesh Bank vide DOS Circular No. 01 dated 1 June, 2008 titled “Mainstreaming Corporate Social Responsibility (CSR) in banks and �nancial institutions” gave a comprehensive guideline on CSR. We have been submitting quarterly CSR report to Bangladesh Bank as per format provided by them. The format has following dimensions:

(i) Financial Inclusion:(In the form of Agriculture, SME, Women Entrepreneur, Renewable Energy Finance, Solar Irrigation etc.)

(ii) Donation to the individuals, covering: Education, Health, Disaster Management (Family Rehabilitation), Environment (Social Utility), Sports, Art & Culture, Others etc.

(iii) Donation to NGO’s :For supporting such welfare activities SIBL has contributed a sum of total Tk.65.08 million in the �eld of Health, Education, Disaster Management (Family Rehabilitation), Sports, Art & Culture, Environment (Social Utility) & Others during year 2014, which are furnished hereunder:

CSR

Activities

of SIBL

Sector wise CSR Contribution in 2014 (Figure in Million Taka)

Health EducationDisaster Management (Family Rehabilitation)

SportsArt & CultureEnvironment (Social Utility)

3.84 3.32

38.7511.01

7.95

0.22

(Figure in Taka)

Sectors (Jan – Jun’ 14) (Jul – Dec’14) Contribution Contribution in 2014 in 2013

Health 1,850,000 1,990,000 3,840,000 3774624

Education 1,324,930 1,990,680 3,315,610 2962360

Disaster Management (Family Rehabilitation) 1,604,130 37,143,922 38,748,052 22116242

Sports 15,000 2,00,000 215,000 190,93,840

Art & Culture 11,005,798 - 11,005,798 26,79,666

Environment (Social Utility) 7,001,500 950,400 7,951,900 25,42,500

Others - - - -

Total 22,801,358 42,275,002 65,076,360 53,169,232

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CSR Activities of the Bank During 2014 at a glance :

Sl. No. Events Particulars

Sponsored BORNAMELA of Prothom-Alo

Donated 100 pieces Beds to Burn & Plas-tic Surgery Unit of DMCH

Organized Eye Cataract Treatment Camp at Narsingdi

Contributed “Lakho Konthey Sonar Bangla Tahabil”

Donated Holy Quran

Free Cleft Lip & Palate Camp at Gazipur Medical College Hospital

Organized Eye Cataract Treatment Camp at Bagerhat

Donated Holy Quran

Donated Martyrs of the victims of BDR Mutiny

Construction of 02 Cabins of KhulnaShishu Hospital

Donated an Infant Incubator for the Child Unit of DMCH

Prime sponsor of the “Annual Fellowship Night” of Dhaka University Club

Sponsored bags of ACM-ICPC Asia Regional Dhaka Site Event 2014 organized by BUBT

Re-construction of a Reception Building of Kailakuri Health Care Project of Madhupur, Tangail

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The Bank funded as a Sponsor an amount of Tk. 4,00,000 and VAT Tk.60,000.00/- to the event “Bornomala” organized by Prothom Alo on 21st February, 2014.

The Bank donated 100 pcs folding Beds at a cost of TK.4,50,000.00 to the National Institute of Burn and Plastic Surgery Unit of Dhaka Medical College Hospital.

The Bank also organized an Eye Cataract Treatment Camp at Baghata, Narsingdi at cost of Tk.4,48,000.00

As per decision of the meeting between Bangladesh Association of Banks (BAB) and Deputy Governor of Bangladesh Bank, the Bank contributed an amount of Tk. 10 million to participate the “Lakho Konthey Sonar Bangla Tahabil organized by the Government of the people’s Republic of Bangladesh,

The Board of Directors of the Bank approved an amount of Tk.1,94,000.00 for procuring of ‘The Holy Quran’ with Bangla trans-late to distribute among the different Mosque of the country which already distributed amongst the different Mosque.

The Board of Directors of the Bank approved an amount of Tk. 2,00,000/- for arrangement of Free Cleft Lip and Palate Camp at Gazipur Medical College Hospital.

The Board also approved cost of Tk.4,41,797.00 for organizing Eye Cataract Treatment Camp at Bagerhat.

The Board further approved an amount of Tk.3,88,000.00 for procur-ing (1600+400) 2,000 copies of ‘Holy Quran’ with Bangla translation instead of proposed 1,000 copies to distribute among the different Mosque in the country.

Like previous years during the period the Bank gave �nancial as-sistance an amount of Tk. 4,80,000/- for the family members of the martyrs of the victims of the then BDR mutiny.

The Bank sponsored an amount of Tk. 6,75,000 favoring Khulna Shishu Hospital, Khulna for construction of 02 (two) cabins on the 3rd �oor of Block-A building of the hospital on 18.08.2014.

The Board of Directors approved donation of Tk.3,70,000 (excluding AIT & VAT) for buying an Infant Incubator for the Child Unit of Dhaka Medical College Hospital (DMCH),

The Bank participated as a Prime Sponsor of the ‘Annual Fellow-ship Night’ to be organized by Dhaka University Club at a cost of Tk.5,00,000.

The Bank sponsored Bags of ACM-ICPC Asia Regional Dhaka Site Event 2014 organized by Bangladesh University of Business and Technology (BUBT) at a cost of Tk.2,25,000.

The Board of Directors accorded post-facto approval for Tk.1,00,000 favoring Kailakuri Health Care Project of Madhupur, Tangail for re-construction of a Reception Building at Thanarbari Village Outpatient Center.

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On going CSR Activities of the Bank:



Donated to Major (Rtd.) Md. Waliur Rahman BIR PROTIK

Financial Assistance to Mr. Md. Mobarak Hossain, a driver of Hamdard Laboratories (Waqf) Bangladesh

Distributed Sharee & Lungi during Holy Ramadan 2014

Donation to Prime Minister’s Relief Fund for �ood victims

Banglar Pathshala (School for underprivileged children sup-ported by SIBL)

URECA (School for underprivileged children sup-ported by SIBL)

Stipend to poor & meritorious student

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• Muktijuddha Jadughar• Bangladesh Association of Banks

(BAB)• Dhaka Chamber of Commerce &

Industries (DCCI)• Sight Savers International• Jatiya Ando Kalyan Samity,

Comilla• East West Medical College

Hospital, Dhaka• Bishyabidyalaya CAMPUS• Writer’s Foundation• Dhaka Medical College Hospital

(DMCH)• Khulna Shishu Hospital, Khulna• Bangabandu Memorial Trust

• Association of Bankers of Bangladesh (ABB)

• Metropolitan Chamber of Commerce & Industries (MCCI)

• Kidney Foundation• Mosabbir Cancer Care Centre• Banglar Pathshala (School for the

slum children)• Chandpur Diabetic Samity• Hamdard Laboratories (Waqf)

Bangladesh• Khulna Shishu Hospital, Khulna• Dhaka University, Dhaka• Center for Rehabilitation of the

Paralyzed (CRP)• Federation of Bangladesh

Chamber of Commerce & Industries (FBCCI)

• Bangladesh Cricket Board (BCB• Bangladesh Cancer Foundation

Hospital• Dhaka Community Hospital• URECA (School for under

privileged children supported by SIBL)

• Kailakuri Healthcare Project, Modhupur, Tangail

• Bangladesh University of Business and Technology (BUBT)

• Bangladesh University of Business and Technology (BUBT)

• Prothom Alo

SIBL intends to continue with its welfare activities as part of its Corporate Social Responsibility (CSR).

The Board of Directors of the Bank approved the Financial Assis-tance favoring Major (Rtd.) Md. Waliur Rahman BIR PROTIK for bear-ing medical expenses of his elder daughter namely Mrs. Sadia Binte Wali who has been suffering from Cancer.

The Board of Directors approved Tk.2,00,000 as Financial Assistance of Mr. Md. Mobarak Hossain, a driver of Hamdard Labo-ratories (Waqf) Bangladesh, who has been suffering from Cancer.

The Bank donated 29,000 Sharee & 15,700 Lungi for distribution among the poor and distressed in different places of the country during Holy Ramadan’ 2014 costing Tk.18.24 million on July & August 2014.

The Bank donated an amount of Tk.5.00 million on 16.09.2014 to the Prime minister’s Relief Fund on a sudden �ood across the country.

SIBL is sponsoring the education program of Banglar Pathshala (School for underprivileged children). It is mentionable that 04 (four) schools of Banglar Pathshala situated at Mirpur, Mohammadpur, Karail & Doyagonj are being sponsored by SIBL involving total Tk.0.89 million being paid on monthly and yearly basis.

SIBL is sponsoring the education program of URECA (School for underprivileged children). It is mentionable that 0 3(three) schools of URECA situated at Uttara, Sector 8 & 9 are being sponsored by SIBL involving total Tk.0.90 million being paid on monthly and yearly basis.

SIBL is sponsoring �nancial support to the poor & meritorious students. In the year 2014, we have donated Tk.0.77 million favoring 14 (fourteen) students of different college & university around the country.

A short list of our stakeholders:

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Income on Investment 13943.26 13629.42 2.30%

Pro�t paid to the Depositors 9007.20 9706.87 -7.21%

Net Investment Income 4936.06 3922.55 25.84%

Commission, Exchange & Other Income 1774.82 1556.74 14.01%

Total Operating Income 6710.88 5479.29 22.48%

Operating Expenses 2746.61 2585.23 6.24%

Pro�t before Provision 3964.27 2894.06 36.98%

Provision against Investment & Others 656.76 869.40 -24.46%

Pro�t before Tax 3307.51 2024.66 63.36%

(Taka in Million)

Particulars 2014 2013 Growth Rate

Total Operating Income of the Bank as on 31st December 2014 stood at Tk. 6710.88 million against Tk. 5479.29 million of the preceding year. The Bank made an operating pro�t of Tk. 3964.27 million in 2014 against Tk. 2894.06 million of 2013.

A summary of operating result of the Bank as on 31st December 2014 vis-à-vis the position as on 31.12.2013 is shown below:

During the year under review, high deposit cost, increase in salary and allowances and depreciation on �xed assets and other operating expenses affected the overall performance of the Bank. Besides that, Classi�ed along with Block (rescheduled) Investment leads the bank in income blocking that resulted investment earnings in the year 2014 not up to the mark. To bring the banking operation in streamline, management is paying extra attention in recovery of bad investments and all investments has been brought under the

The �nancial statements prepared as on 31.12.2014 by the Bank, presented fairly its state of affairs, the results of its operation, cash �ows and changes in equity;

(a) The �nancial statements prepared as on 31.12.2014 by the Bank, presented fairly its state of affairs, the results of its operation, cash �ows and changes in equity;

(b) There occurred no signi�cant variance between quarterly �nancial performances and Annual Financial Performances of 2014;

(c) During the year 2014, an amount of Taka 2.52 million has been paid to the Directors of Social Islami Bank Limited as director’s remuneration including Independent Director;

(d) The Bank has been maintaining proper books of accounts;

Operating Result & Pro�t:

Pro�tability Ratio

This report also states

Particulars 2014 2013

(e) Appropriate accounting policies have been consistently applied in preparation and presentation of the �nancial statements and that the accounting estimates are based on reasonable and prudent judgment;

(f) International Accounting Standards (IAS)/Bangladesh Accounting Standards (BAS)/lnternational Financial Reporting Standards (IFRS)/Bangladesh Financial Reporting Standards (BFRS), as applicable in Bangladesh, have been followed in preparation of the �nancial statements and any departure there-from has been adequately disclosed;

(g) The system of internal control is sound in design and has been effectively implemented and monitored; and

(h Management has reasonable ground to believe that there are no signi�cant doubts upon the Bank’s ability to continue as a going concern.

i. Net Investment Income Margin (NIIM) 3.86% 3.68%

ii. Return on Assets (ROA) 2.36% 1.67%

iii Return on Equity (ROE) 15.68% 11.01%

v. Earning per Share Tk. 2.71 Tk. 1.74

close monitoring system. For this purpose, management has undertaken some programs to protect the banks assets / investment from any future de�ect.

(a) During the period under report, there was no extra ordinary gain or loss has recorded.

(b) The Board of Directors has recommended 18% cash dividend for the year 2014 in its 334th Board meeting held on 28.02.2015.

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Bank was duly constituted by the Board of Directors with a view to evaluating the activities of the Bank as per guidelines laid down in the BRPD Circular Number 12 dated December 23, 2002 of Bangladesh Bank. As per directives of Bangladesh Securities & Exchange Commission (BSEC) on 7th August 2012, to strengthen the corporate governance practice, one of the most important and interesting part of the corporate governance is inclusion of at least 1/5th Independent Director of the total number of Board of Directors in the listed companies who will be knowledgeable individual with integrity and is able to ensure compliance with �nancial, regulatory and corporate laws and can make meaningful contribution to business. SIBL is always keen to comply with and focus highly the corporate governance issues and accordingly included 1/5th number of Independent Directors of its total number of Board of Directors.

In recent times, corporate governance has been considered as most essential aspect for ef�cient management of a business house. It is considered to be a set of internal rules and procedures that ensure the accountability of the Directors and Top Management towards the stakeholders. SIBL gives much emphasis on the corporate governance in promoting a sound management. The objective of the Bank is to comply with all regulatory requirements, ensure equitable treatment of all stakeholders. It con�rms full and fair disclosure of �nancial and other material information and show respect for norms of business ethics and social responsibility. The Board of Directors, Executive Committee, Audit Committee, Risk Management Committee, MANCOM and other Committees of the management perform their respective tasks with accountability and transparency. Besides, to support and enhance the practice of corporate governance, the Audit Committee of the

Compliance Status of Corporate Governance Guidelines issued by Bangladesh Securities & Exchange Commission (BSEC) under noti�cation no: SEC/CMRRCD/2006 158/134/Admin/44 dated 7th August 2012 under condition no: 1.5 (xviii), (xx), (xxi a), (xxi b), (xxi c) & (xxi d):

Compliance of condition 1.5 (xviii): Key operating and �nancial data for the last �ve years are summarized in the preface of this report.

Compliance of condition 1.5 (xx): Board Meeting held during the year 2014 and attended by each Director.

Sl. No. Held Fees (BDT)Attended

Board Meetings in 2014

Corporate Governance

Name of Directors

01. Major Dr. Md. Rezaul Haque (Retd.), Chairman; 26 26 130000

02. Mr. Md. Sayedur Rahman, Vice Chairman; 26 26 130000

03. Mr. Abdul Awal Patwary, Director; 26 26 130000

04. Mr. Md. Anisul Hoque, Director; [Representative of Hamdard Laboratories (Waqf) Bangladesh] 26 25 125000

05. Alhaj Nasiruddin, Director; 26 25 125000

06. Alhaj Sk. Mohammad Rabban Ali, Director; 26 24 120000

07. Mr. Abdul Jabbar Mollah, Director; 26 25 125000

08. Mr. Md. Abdur Rahman, Independent Director; 26 26 130000

09. Mr. Abdul Mohit, Independent Director; 26 23 115000

10 Mr. Md. Abdur Razzaque, Director *17 17 85000

11 Major Gen Fazle Elahi Akbar (Retd.), Independent Director; *17 16 80000

12 Mr. Mohammad Amin Uddin, Director *5 2+3** **Attended by 25000 Alternate Director

13 Mr. Md. Kamal Uddin, Director; [ Representative of Sifang Securities(Pvt.) Ltd.] *5 5 25000

14 Mr. Md. Sha�qur Rahman, Managing Director 26 26 N/ A

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Compliance of condition 1.5 (xxi): Pattern of shareholdingStatement in compliance with condition 1.5 (xxi a): Parent / Subsidiary/Associated Companies and other related parties (Name wise details): NIL

b (i): Shareholding Position of Directors of SIBL with their Spouse and Minor Children (Name wise details) as on 31.12.2014:

Statement in compliance with Condition 1.5 (xxi)

Sl. No. Name & Designation Nos. of Share(s) held

Sl. Name of Directors Relation No. of Share(s) held

b (ii) Shares held by the Chief Executive Officer, Company Secretary, Chief Financial Officer, Head of Internal Audit and other top Executives of the Bank and their spouse and minor children (Name wise details):

1 Major Dr. Md. Rezaul Haque (Retd.) Chairman 14,067,491

Mrs. Dr. Lily Amin Wife 290,799

Total 14,358,290

2 Mr. Md. Sayedur Rahman Vice Chairman 14,067,554

3 Mr. Abdul Awal Patwary Director 14,073,417

Mrs. Fatema Begum Wife (Sponsor) 1,234,813

Total 15,308,230

4 Mr. Md. Anisul Hoque[Representative of Hamdard

Laboratories (Waqf) BD]. Director 14,066,727

5 Alhaj Nasiruddin Director 14,069,676

6 Alhaj Sk. Mohammad Rabban Ali Director 14,101,998

Mrs. Shama Rabbani Wife 205

Total 14,102,203

7 Mr. Abdul Jabbar Mollah Director 14,208,452

8 Mr. Md. Abdur Rahman Independent Director 0

9 Mr. Abdul Mohit Independent Director 0

10 Mr. Md. Abdur Razzaque General Public 5,78,338

Shareholder Director

11 Major Gen Fazle Elahi Akbar(Retd.) Independent Director 0

12 Mr. Mohammad Amin Uddin Director 14,062,949

13 Mr. Md. Kamal Uddin [Representative of Sifang Securities (Pvt.) Ltd.] Director 14,100,000

01. Mr. Md. Sha�qur Rahman NIL Managing Director and CEO

02. Mr. Md. Humayun Kabir, ACS NIL Company Secretary

03. Mr. Walid Mahmud Sobhani, FCMA NIL Chief Financial Of�cer

04. Mr. Zahurul Islam Khondker NIL EVP & Head of Internal Audit

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c) Shares held by top five salaried Executives of the Bank and their spouse and minor children

d) Sharesholders holding ten percent (10%) or more voting interest in the company: NIL

Sl. No. Name & Designation Nos. of Share(s) held

01.

02.

03.

04.

05.

Mr. Ihsanual AzizAdditional Managing Director

Mr. A.M.M. FarhadDeputy Managing Director

Mr. Yunus AliDeputy Managing Director

Mr. Md. Tarik MorshedDeputy Managing Director

Mr. Md. Sha�qul IslamSenior Executive Vice President

NIL

NIL

NIL

NIL

NIL

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Declaration by the CEO & CFO In accordance with the noti� cation of Bangladesh Securities and Exchange Commission (BSEC) no SEC/CMRRCD/2006-158/129/Admin/44 dated 7 August 2012, we declare that for the � nancial year ended 31st December 2014

i) We have reviewed the � nancial statements for the year and that to the best of our knowledge and belief

a) These statements do not contain any materially untrue statement or do not omit any material factor containing statements that might be misleading;

b) These � nancial statements together present a true and fair view of the bank’s affairs and are in compliance with existing accounting standards and applicable laws;

ii) There are, to the best of our knowledge and belief, no transactions (carried out or recorded) by the bank during the year are fraudulent, illegal or violation of the bank’s code of conduct.

I have reviewed the Compliance of Conditions of the Corporate Governance Guidelines by Social Islami Bank Limited (“the Company”) for the year ended 31 December 2014. Such compliance is the responsibility of the

Company as stipulated in the above mentioned noti� cation issued by Bangladesh Securities and Exchange Commission.

I have conducted my review in a manner that has provided me a reasonable basis for evaluating the compliances and expressing my opinion thereon. This review has been limited to the measures adopted by the Company in ensuring such compliances and this has not been for expression of opinion on the � nancial statements or future viability of the Company.

According to the information and explanations provided to me by the Company, I hereby certify that all the conditions of the Corporate Governance Guidelines have been complied with by the Company.

S. Abdur Rashid FCS Dhaka, 04 March 2015

Certi� cate on Compliance of Corporate Governance Guidelines[ Issued under Condition # 7(i) of Corporate Governance Guidelines of BSEC vide

Noti� cation No. SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August 2012 ]

Walid Mahmud Sobhani, FCMA Md. Sha� qur Rahman Chief Financial Of� cer Managing Director

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Board of DirectorsSocial Islami Bank Limited does not have its own policy on appointment of Directors rather it follows the directions and guidelines of regulatory authorities like Bangladesh Bank, BSEC noti�cation, Bank Company Act and Company Act. All directors of the Board are non-executive directors and almost one-�fth is Independent Directors. There are two independent directors appointed by the Board. The Chairman has been independent of the CEO. At the time of appointment of new directors, the existing Board of Directors frequently assesses the size and structure of the Board, evaluates the knowledge, skills, experience and perceptions that may be necessary to allow the Board to perform its functions. The directors are selected by the shareholders in the Annual General Meeting. Casual vacancy, if any, is �lled up by the Board in accordance with the conditions in the Companies Act and Articles of the Company. During the year under report, no casual vacancy occurred. Total number of Directors of Social Islami Bank Limited is 13 (thirteen) including 3 (three) Independent Directors and 1 (one) General Public Shareholder Director as on 31.12.2014 which is within the compliance limit of Bangladesh Bank BRPD circular no 11 dated 5 November 2007 and all the Directors have their suf�cient share holdings i.e. minimum 2% of the total paid-up capital of the Bank as per SEC (Securities & Exchange Commission of Bangladesh) Noti�cation no SEC/ CMRRCD/2009-193/119/Admin/34 Dated 22.11.2011 published in the Bangladesh Gazette on December 14, 2011. The Board members of SIBL are highly competent and professional in the arena of Banking, Business and Industry. The board approves and reviews different policies and business plans in line with six core risk management guidelines with the ultimate objective to achieve the goals whereas the administrative and execution powers lie with the management team of the bank which is headed by the Managing Director or CEO. Managing Director of the Bank is paid salaries and allowances as per approval of the Board of Directors of the Bank subject to approval of Bangladesh Bank and as per Bangladesh Bank BRPD Circular no 9 dated 19/09/1996; the bank provides only the following facilities/bene�ts to the members of the Board

• Chairman of the Board of Directors is provided with a car, telephone, of�ce and private secretary.

• Directors are entitled and paid Meeting Attendance fees including actual travelling, fooding and lodging expenses for attending the Board of Directors Meeting, Executive Committee Meeting, Audit Committee Meeting, Risk Management Committee Meeting, Shariah Supervisory Committee meeting.

As per BRPD Circular No 03 dated 18th January 2010, the highest slab of Honorarium for the Board member to attend the Board meeting of any bank operating in Bangladesh has been limited to Taka 5,000/- per attendance and accordingly Social Islami Bank Limited has been paying Honorarium to the Hon’ble Directors for attending Board Meeting including attending to the Executive Committee Meeting, Board Audit Committee Meeting and Risk Management Committee Meeting @ Taka 5,000/- per attendance.

During the year 2014, the total expenditure related to the Board meeting was Taka 6.40 million against Taka 4.26 million in 2013.

Board Meetings & MinutesThe Board meets to discuss and review business strategy, �nancial performance, compliance and governance, risk management issues etc. as well as reports on matters deliberated by the respective committees. Meetings of the Board are scheduled in advance for the Directors to plan their schedules. In addition, Special Board meetings are held when necessary, to deliberate on major transactions and ad-hoc matters that require the Board’s urgent attention and decisions.

Meeting papers on the proposals and reports are delivered to the Directors prior to the meetings, giving them suf�cient time to evaluate the proposals and if necessary, request additional information. This enables the Board to function and discharge their responsibilities effectively. The minimum information required for the Board to make an informed and effective decision includes background, objective, key issues, rationale, �nancial and non-�nancial impact of the proposal. Directors who are unable to attend a meeting due to unavoidable circumstances are encouraged to provide feedback to the Chairman on matters to be deliberated for their views to be given due consideration at the meetings. Proceedings and

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• Developing and implementing corporate strategies.

• Exercising of business judgment in good faith using general prudence for the best interest of the bank in line with bank’s Articles of Association and complying with the prevailing applicable laws and regulations.

• To set the direction, vision and policies of the bank and to determine objective and strategies to ensure

The major responsibilities of the Directors of the Board are:

resolutions are taken by the board are recorded as minutes of the meeting signed by the Chairman of the meeting and sent to Bangladesh Bank. The decisions taken by the board are disseminated by the Company Secretary to whom such decision relates. Upon request of any member of the Board of Directors, copy of minutes on speci�c agenda is provided by the Company Secretary upon receipts of fees as per

Director’s Responsibility Statement

the effective discharge of the bank’s functions.

• Most ef�cient use of the bank’s resources.

• Monitoring and reviewing corporate governance framework of BSEC.

• Monitoring and reviewing risk management process of the bank.

Articles of Association of the Bank. As per Company Act 1991, every company is required to hold minimum 4 (four) Board of Directors meetings in a year. Since inception total 328 numbers of Board meetings were held all such meeting related papers, documents, memo, attendance & honorarium registers, minutes etc. are being maintained in good condition by the Board Secretariat of the Bank.

Retirement of DirectorsAt least one third of the total number of Directors retire every year in the Annual General Meeting (AGM) in compliance with the provision of Companies Act, 1994 and Articles of Association of the Bank. However, retiring Directors are also eligible for re-election in the same AGM they retire. In the last Annual General Meeting (AGM) following 3(three) Directors retired by rotation and they were also re-elected as per provision of the Articles of Association of the Bank:

1. Mr. Md. Anisul Hoque [Represantative of Hamdard Labratories (Waqf), Bangladesh] Director

2. Mr. Mohammad Azam Director

3. Alhaj Sk. Mohammad Rabban Ali Director

As per Section 91(2) of the Companies Act, 1994 and as per provision of Articles of Association of the Bank the following 5(�ve) Directors will retire from of�ce of the Director among whom Mr. Mohammad Amin Uddin and Mr. Md. Kamal Uddin will compulsorily retire from the of�ce as per provision of Regulation 86 of Schedule-I of the Companies Act, 1994 as they were appointed as Additional Directors. The other 3(three) Directors will retire as they are holding the of�ce for the longest period.

1. Mr. Mohammad Amin Uddin Director

2. Mr. Md. Kamal Uddin Director

3. Mr. Md. Sayedur Rahman Director

4. Alhaj Nasiruddin Director

5. Abdul Jabbar Mollah Director

As per provision of Article 84 of the Articles of Association of the Bank the retiring 5(�ve) Directors as mentioned above are eligible for re-election in the same meeting they are retiring.

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• Fixation of Business targets, reviewing business results and monitoring budgetary control.

• To evaluate the key performance indicators of the Top Executives of the bank.

• To establish and maintain effective communication system with the different regulatory bodies.

• Setting up standards and monitoring compliances with the bank’s social responsibility policies and practices.

Fiduciary Duties The duties imposed on Board Members are �duciary duties, similar to those that the law imposes on those in similar positions of trust, agents and trustees;

Powers vs Duties The duties apply to each Board Member separately, while the powers apply to the Board jointly;

Contribution in Meetings/DebatesThe Board Members are expected to contribute to the debates in the Board without any personal biases or other prejudices with the conviction and belief that the outcome of every debate would be towards the advancement of the company.

Unfettered discretionBoard Members cannot without the consent of the company, fetter their discretion in relation to the exercise of their powers, and cannot bind themselves to vote in a particular way at future Board Meeting.

Use of corporate property, opportunity or informationA Board Member must not, without the consent of the company, use company’s assets, opportunities, or information for his/her own pro�t.

Con�dentialityEach Board Member must use utmost care and discretion in the handling of con�dential information and other information not normally available to the public, generally coming to them by reason of their directorship, of�ce or employment. Such information

• Recommendation of appointment and re-appointment of statutory auditors of the bank along with their fees.

• To prepare and submit Directors’ Report before the shareholders’ in Annual General Meeting in accordance with the BSEC noti�cation and Listing Regulations of DSE & CSE.

• Recommending shareholders to approve Financial Statements, dividend and appointment of external auditors.

shall, subject to certain limited circumstances, not be disclosed to third parties and shall not be used for personal bene�t or for the bene�t of family, friends, or associates.

Transactions with the companyA Board Member shall not enter into a transaction where there is a con�ict between his interest and duty without the knowledge of the Board; andIt is a statutory duty of the director(s) to declare interests in relation to any transactions, and to make proper disclosure thereof.

Competing with the companyA Board Member must not compete directly with the company without arising a con�ict or interest.A Board Member should not act as a director of any competing companies, as his/her duties to each company would con�ict with each other.

Con�ict of duty and interestAs �duciaries, the Board Members must not put themselves in a position where their interests and duties con�ict with the duties that owe to the company;

Each and every Board Member has an obligation of loyalty to the company and should subordinate his/her personal interest when they con�ict with or threaten to con�ict with the best interests of the company;Each and every Board Member shall declare all actual or potential material con�icts that may arise between their duty to (i) the company and (ii) their personal

Code of Conduct for the Board of Directors Board of Directors of Social Islami Bank Limited has adopted the Code of Conducts for all the members of the Board who shall individually be liable to sign and follow this Code of Conduct including any new members who may assume of�ce as from this date. The Code of conduct includes all instructions /circulars/ guidelines issued by Bangladesh Bank related to the Directors and their interested group/organization. However, followings are the general code of conducts approved and adopted by the Board of Directors

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• If at any meeting of the Board, the Chairman be not present at the time appointed for holding the same, such meeting shall be presided over by Vice-Chairman, if any, and if none be present the Directors present shall elect Chairman to preside over that meeting;

The Chairman as per the Articles of Association• The Directors shall select a Chairman from amongst themselves;

Terms of Reference (TOR) for the Chairman

• All meetings of the Board and Shareholders shall be presided over by the Chairman;

• The Chairman may call a meeting of the Board of Directors of the Company;

• The Chairman may call a meeting of the Board of Directors on shorter notice than seven clear days

obligations, other �duciary duties or �nancial interests (direct or indirect) and these con�icts shall be reported to the Chair;

A Board Member should not engage directly or indirectly, as a director, of�cer, employee, consultant, partner, agent or major shareholder in any business or undertaking that competes with, does business with or seeks to do business with the company;With respect to restricted party transactions, full disclosure of material transactions shall be recorded in the board’s minutes and will be transacted in accordance with legislated restrictions; andTo avoid con�icts of interest, the Board Members must do more than merely act within the law. They must conduct their affairs in such a manner that their performance will at all times bear public security. The appearance of con�ict of interest as well as the con�ict itself must be avoided.

Accepting GiftsNo Board Member shall accept any gift, hospitality or favour offered or tendered by virtue of the position with the company;

When dealing with public of�cials whose responsibilities include the business of the company, acts of hospitality should be of such a scale and nature so as to avoid compromising the integrity or reputation of either the public of�cial or the company. Such acts of hospitality should be undertaken in the expectation that they could well become a matter of general knowledge and public record.

Reporting of Questionable or Fraudulent ActionsThe Board Member shall report to the Board or to the Audit Committee about their awareness of any situation which might adversely affect the reputation

of the company. This would include any questionable, fraudulent or illegal events or material actions in violation of company policy which comes to their attention.

Cooperation with AuditorsEvery Board Member is expected to comply promptly with any request from internal and/or external auditors for assistance and to provide full disclosure of any situation under investigation.

Acceptance of this codeAll members of the Board of Directors shall sign this Code of Conduct, including any new members who may assume of�ce as from this date.These signed copies shall be held by the Company Secretary.

Af�rmation & Compliance of the CodeAll Board Members shall read this Code at least annually, and shall certify in writing that they have done so and that they understand the Code;Annual compliance of the code by all Board Members shall be recorded in a meeting of the Board of Directors;This document is applicable with immediate effect; and

The Board shall have the authority to make amendment to this document at any time.

The Company Secretary of the bank has submitted a declaration before the Board of Directors and affairmed that all the member of the Board of Directors have complied with the code of conducts as were determined by the Board.

The following Terms of Reference (TOR) (de�ning the roles, responsibilities and duties) for the Chairman may be framed in line with the provisions of the Articles of Association of the Bank, BRPD Circular No.11 dated 27.10.2013 and other usual practices:

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as he may deem �t;• In case of equality of votes in a Meeting of the

Board of Directors, the Chairman shall have a second or casting vote;

• The minutes of a Meeting of the Board of Directors or of the Shareholders shall be signed by the Chairman of the meeting to which it relate or by the Chairman of the succeeding meeting.

Roles & Responsibilities of the Chairman

As per BRPD Circular No.11 dated 27.10.2013

1. As the Chairman of the Board of Directors (or Chairman of any Committee formed by the Board of Directors) does not personally possess the jurisdiction to apply policy making or executive authority, he shall not participate in or interfere into the administration or operational and routine affairs of the bank.

2. The Chairman may conduct on-site inspection of any branch or �nancing activities under the purview of the oversight responsibilities of the Board. He may call for any information relating to bank’s operation or ask for investigation into any such affairs; he may submit such information or investigation report to the meeting of the Board or the Executive Committee and if deemed necessary, with the approval of the Board, he shall take necessary action thereon in accordance with the set rules through the CEO. However, any complaint against the CEO shall have to be apprised by the Bangladesh Bank through the Board along with the statement of the CEO.

3. Chairman of the Board of Directors may be provided with a car, telephone, of�ce and private secretary.

Roles & Responsibilities of the Chairman as per usual practices

o The duties of the Chairman, which is a non-executive role, arise from his senior most position in the Company and his responsibility for presiding over the of�cial business of the Company and the Board.

A. While working with the Board, the Chairman shall

(i) ensure that the Board has full governance of the Company’s business and affairs and

that the Board is alert to its obligations to the Company, shareholders, Management and other stakeholders under the law;

(ii) set the agenda for discussion at Board Meetings and General Meetings and ensure that adequate time is available for discussion of agenda items;

(iii) set the frequency of the Board meetings and review such frequency from time to time as considered appropriate or as requested by the Board;

(iv) chair all Board meetings and manage the business of the Board ensuring that the Board adopts a prompt and constructive approach to make decisions;

(v) provide strong leadership of the Board and assist it in reviewing and monitoring the aims, strategy, policy and directions of the Company;

(vi) communicate with the Board to keep it up-to-date on all major developments, including avoiding surprises through timely discussion of potential developments and ensuring the Board has suf�cient knowledge to permit it to comfortably and properly make major decisions when such decisions are required;

(vii) recommend the committees of the Board and their composition, review the need for and the performance and suitability of those committees, and make such adjustments as are deemed necessary from time to time;

(viii) ensure that Board and committee meetings are conducted in an ef�cient, effective and focused manner;

(ix) ensure that the corporate governance of the company is maintained in line with appropriate practice policies agreed by the Board;

(x) annually review Board Governance and performance of the Board (leading the process for the Board’s annual performance evaluation and the evaluation of its committees and individual directors and acting on the results of such evaluation by recognizing the strengths and weaknesses of the Board);

(xi) be the contact person for the expression of individual director concerns;

(xii) foster a culture of openness and engagement

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by facilitating the effective contribution of all directors, in particular non-executive directors and ensuring constructive relations between executive and non-executive directors;

(xiii) ensure that new directors participate in a full, formal and tailored induction program and that the development needs of the directors and the Board as a whole are identi�ed and are met to enhance the effectiveness of the Board; and

(xiv) be available to assist committee chairs in carrying out their responsibilities and in addressing their concerns.

B. While working with the Management, the Chairman shall

(i) act as the principal of the board and counselor for the MD/CEO, including helping to de�ne problems, review strategy, maintain accountability, build relationships, and ensure the MD/CEO is aware of concerns of the Board, shareholders and other stakeholders;

(ii) keep under review with the Board the general progress and long-term development of the company and ensuring that effective strategic planning for the company is undertaken by the MD/CEO and endorsed by the Board after discussion, consistent with creating shareholder value and promoting the long term success of the company for the bene�t of its members as a whole;

(iii) ensure the submission to the Board by the MD/CEO of objectives, policies and strategies for the company, including the company business plan and the annual budget;

(iv) monitor progress towards timely and effective achievement and implementation of the objectives, policies and strategies set by the Board and ensure that appropriate decisions are taken promptly by or on behalf of the Board;

(v) lead the Board in

(a) formally appraising, monitoring and evaluating the performance of the MD/CEO and make appropriate recommendations to the Remuneration Committee;

(b) ensuring accountability of the MD/CEO;

(c) ensuring the implementation of the succession and development plans by the MD/CEO; and

(d) as appropriate, review with the MD/CEO his recommendations on performance and remuneration of senior executives;

(vi) work with the MD/CEO and Company Secretary to co-ordinate the agenda, information packages and related events for Board meetings.

(vi) ensure that there is appropriate delegation of authority from the Board to Executive Management;

(vii) provide advice to the MD/CEO on the allocation of duties to individual directors and assignment of adhoc responsibilities or special tasks to directors or groups of directors;

C. Recognizing the MD/CEO as the primary spokesperson, the Chairman shall

(i) chair all meetings of shareholders;

(ii) undertake public service as agreed with the MD/CEO in connection with the Company’s charitable, educational and cultural activities;

(iii) participate with MD/CEO, as appropriate, in corporate relations, including relations with the shareholders, customers, government, other companies, the media and stakeholders generally; and

(iv) hold meetings with the non-executive directors.

• This document is applicable with immediate effect.

• The Board shall have the authority to make amendment to this document at any time.

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The MD/CEO as per the Articles of The Association:

• The Managing Director [“MD”] means the Chief Executive Of�cer [“CEO”] of the company appointed by the Board and approved by Bangladesh Bank;

• The MD/CEO of the Company shall be accountable to the Board and shall discharge his functions and duties subject to supervision of the Board of Directors; and

• The MD will be an Ex-of�cio Member of the Board without having any voting power and he shall not need to have any quali�cation share.

General Roles & Responsibilities:

The General Roles and Responsibilities of the MD/CEO shall be-

• To act as the Chief Executive Of�cer reporting to the Board of Directors;

• To remain accountable to the Board for the overall performance of the company and for the day-to-day operation and management of the company’s business, under the authority delegated by the Board from time to time;

• To develop and present strategic and annual business plans, rules, regulations and systems for legal functioning of the organization to the Board for approval;

• To implement the Board’s policies and strategies and deliver the strategic plan in the most effective and ef�cient manner;

• To report to the Board on progress against the strategic and annual business plans on a regular basis. Typically, reporting against the annual plan will be monthly, while reporting against the strategic plan will be less frequent, although it should be at least two or three times a year;

• To coordinate the overall management, administration, corporate planning and business development;

• To ensure the compliances of Laws, Rules and Regulations and for Good Corporate Governance;

• To supervise all technical, �nancial and welfare aspects of the organization, negotiations with sources of credit/fund, and listing in the stock exchange(s);

• To manage the day-to-day operations of the company Manage, motivate, develop and lead members of the Management Team;

Roles, responsibilities and powers conferred on the Managing Director of Social Islami Bank Limited has been conferred by the BRPD Circular No. 18 dated 27.10.2013. Apart from that, Managing Director or CEO of SIBL shall discharge the following roles, responsibilities and duties as per Articles of Association of the Social Islmai Bank Limited and usual practices-

The Chairman of the Board is not the Managing Directors of the Company. The role of Chairman and the Managing Director are independent and detached from each other.

Role, Responsibilities & Power of the Managing Director

Role of the Chairman and Managing Director are independent

• To manage resources ef�ciently and effectively to achieve the company’s objectives;

• To lead the Local Management Team of the Company and chair Management Team meetings;

• To take a leadership role in establishing the company’s culture and values;

• To ensure that there is a �t between strategy and culture, and the company’s processes and structure;

• To ensure that appropriate internal audit and internal control processes and procedures are in place (in liaison with Head of Internal Audit, External Auditors and Board Audit Committee);

• To develop and implement a risk management plan; and

• To ensure that there is a succession plan in place.

The Board has the authority to make amendment to the above rules, responsibilities and document at any time.

Independent DirectorAs per Corporate Governance Guidelines of Bangladesh Securities & Exchange Commission (BSEC) modi�ed on 7th August 2012, Social Islami Bank Limited appointed 3 (three) Independent Directors- Mr. Abdur Rahman on March 12, 2013 Mr. Abdul Muhit on June 20, 2013 and Major General Fazle Elahi Akbar (retd) on 31st May 2014 to be the compliant of the said guidelines of Bangladesh Securities and Exchange Commission (BSEC). Independent Director in the Board exerts independent views on the policy decisions and ensures that all decisions are unbiased and for the best interest of the bank. As per above corporate governance guidelines, no independent director of Social Islami Bank Limited

• holds more than one percent shares of the total paid-up capital.

• is a sponsor of SIBL and is connected with the Bank’s any sponsor or director or shareholder who holds one percent (1%) or more share of the total paid-up capital on the basis of family relationship.

• has any other relationship, whether pecuniary or otherwise, with the Bank or its Subsidiaries namely SIBL Securities Limited and SIBL Investment Limited.

• is a member, director or of�cer of any stock exchange.

• is a shareholder, director or of�cer of any member of stock exchange or an intermediary of the capital market.

• is a partner or an executive or was not a partner or an executive during preceding 3 (three) years of the SIBL’s statutory audit �rm.

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• is an Independent Director more than 3(three) listed companies.

• has been convicted by a court of competent jurisdiction as defaulter in payment of any loan to a Bank or Non-Bank Financial Institute.

• has been convicted for a criminal offence involving moral turpitude.

Executive CommitteeThis is the subordinate committee to the Board. Members of the Executive Committee are elected by the Board of Directors of the Bank. As per Bangladesh Bank BRPD Circular No 06 dated February 04, 2010, every bank shall form an Executive Committee. Duties and responsibilities of the Executive Committee are determined by the Board of Directors. The Executive Committee bears the duties and responsibilities to ensure an ef�cient, competent, complied and secured structural approving system of Investment proposal and business decision. The number of members of Executive Committee of Social Islami Bank Limited is 7 (seven) during the year under review, total 13 (thirteen) number of Executive Committee meetings were held.

Audit CommitteeIn order to establish good corporate governance and a culture of adequate internal control system inside the bank and to evaluate the activities of the bank as per guidelines of Bangladesh Bank, the Audit Committee of the Board was duly constituted by the Board of Directors of Social Islami Bank Limited as per BRPD Circular Number 12 dated December 23, 2002. As per BSEC noti�cation no. SEC/ CMRRC/ 2006-158/ 129/ Admin/ 44 dated 7th August 2012 on Corporate Governance; the current Audit Committee is consisted of 5 members. The Audit Committee is constituted of 2 Directors and 3 Independent Directors. All members of the Audit Committee are non-executive directors. All members are �nancially literate and one of the members of the committee is from Finance and Accounting background. The head of internal audit always has direct access to the audit committee as well, and can express his issues in front of the committee. The Audit Committee has a term of reference and is empowered to investigate/question employees and retain external counsel as required. During the year 2014, total 9 nos. of meetings were held. Audit Committee plays the following role in the bank

• Oversee the �nancial reporting process.

• Monitor choice of accounting policies and principles.

• Monitor internal control risk management process.

• Oversee hiring and performance of external auditors.

• Review along with the management, the annual �nancial statements before submission to the board for approval.

• Review along with the management, the quarterly �nancial statements before submission to the board for approval.

• Review the adequacy of internal audit function.

• Review statement of signi�cant related party transactions submitted by the management.

• Review Management Letters / Letter of Internal control weakness issued by the statutory auditors.

Risk Management CommitteeAs per revised Bangladesh Bank guidelines 2012 dated 15th February 2012 (DOS Circular No 02) and subsequent BRPD Circular No 11 dated 27/10/2013 under paragraph 5(3), Social Islami Bank Limited has formed a Board Committee under the name and style “Risk Management Committee” by adopting a resolution in 299th Board of Directors Meeting held on 16th November 2013 comprising the following Board members

1. Alhaj Nasiruddin Chairman2. Mr. Md. Sayedur Rahman Co-Chairman 3. Major Dr. Rezaul Haque (Retd) Member4. Mr. Md. Anisul Hoque Member5. Mr. Abdul Awal Patwary Member

In view of the revised Risk Management Guidelines 2012 and BRPD Circular no 11, functions of the Risk Management Committee shall comprise an effort to ensure proper risk management in bank. A brief on the function of the members of the Risk Management Committee may be given as under

a. to acquire clear understanding of the type of risk inherent in Business line and to take appropriate steps to ensure different risk management issue of the bank.

b. to de�ne the risk appetite.( Risk appetite is generally expressed through both quantitative and qualitative means and should consider extreme conditions, events and outcomes. It should be stated in terms the potential impact on pro�tability, capital and liquidity)

c. to design the organization structure to manage risk within the bank.

d. reviewing and approving risk management policies and reviewing at least annually to limit the risks, consistent with the bank’s risk appetite.

e. to ensure adequate record keeping and proper reporting system.

f. to review and approve risk limits and re-reviewing at least annually.

g. to ensure monitoring and compliance with overall risk management policies.

h. to be knowledgeable about the methods available to measure risks for various activities.

i. supervising day to day activities of senior managers and head of business line.

j. establishing committee and sub-committee to be in charge of ongoing risk management.

k. to carefully evaluate all the risks associated with new activities and ensure that proper infrastructure and internal control are in place.

l. to provide adequate staf�ng for activity and designated staff with appropriate credentials to supervise the activity.

m. to ensure that all Senior Management including line managers have suf�cient knowledge on risk management.

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Shariah Supervisory CommitteeSIBL is a fully shariah based bank and always adhere to compliance of Shariah principles. The bank has a Shariah Supervisory Committee consisting of prominent Islamic Scholars, Economists and lawyers to advise the Management on Shariah matters relating to business operation. Branches are being regularly audited by the Shariah Inspection Teams; and necessary guidance with required rules and procedures based on shariah principles are being adopted as per Bangladesh Bank guidelines and advice of the Bank’s Shariah Supervisory Committee. As per Article 104 of the Articles of Association of the Bank the board of Directors of the Bank has determined the terms and references as under

Powers and Functions

a) The function of the Shariah Supervisory Committee is to offer views on matters related to the Bank from time to time. The Shari’ah Supervisory Committee may require any papers from the Bank and examine the same in order to ensure that all activities of the Bank are being carried out in accordance with the Islamic principles.

b) The SSC will assist the Board of Directors (BOD) by way of advice on matters relating to Shari’ah. Their recommendations on Shari’ah principles must be respected by the BOD as it is committed to run the Bank strictly in accordance with Shari’ah.

c) The opinions of the majority of the members shall be taken to be the opinion of the SSC provided that the said opinion is supported by the majority of Fakihs/Muftis/Islamic Scholars present in the meeting.

6. The SSC shall have a Secretariat. There will be a Member-Secretary, who will see whether the functions of the Bank are being carried out in accordance with the principles of Islamic Shari’ah. The Member-Secretary shall remain responsible to the Shari’ah Supervisory Committee.

7. Salaried Of�cer(s) designated as “Mudaqqiq” also called “Muraquib” with suf�cient knowledge about all schools of Islamic thoughts may be appointed by the Bank on the recommendation of the SSC to ensure compliance of the Shari’ah principles in each and every case of the Bank and will be responsible to the SSC. He (they) would be employee(s) of the Bank.

8. The status of the SSC shall be advisory to the BOD and Supervisory in respect of operational activities of the Bank.

9. The Annual report of the bank should be certi�ed by the Shari’ah SSC

Remuneration Committee

Employees’ remuneration along with fringe bene�t is reviewed by the Board of Directors of the bank on the basis of in�ation, market trend, employee satisfaction etc. Salaries and allowances of Social Islami Bank Limited are very competitive in comparison with other banks operating in the market. There is no provision or instruction for formation of Remuneration Committee as per Bangladesh Bank, however, Board of Directors of the bank time to time reviews and enhances the remuneration packages of the employees.

Terms of Reference (TOR) for the Company Secretary

01. Appointment, Reporting Relationships and Accountability

The Company Secretary is an employee of the Company who;• reports administratively to the MD/CEO and operationally

to the Chairman of the Board;

• is also accountable to the Board of Directors;

• acts in the capacity of Secretary to the Board and its Committees;

• is responsible for providing strategic and operational support to the Board by providing resources and information links among the Board, Management and the Shareholder, with particular emphasis on facilitating the �ow of information;

• is also responsible for maintaining effective working relationships with the Board Chairman, Committee Chairs, individual Directors and Management;

• must have a broad understanding of the organization and its operations to effectively carry out his/her responsibilities.

02. Duties and Responsibilities

• Duties and Responsibilities: Management of Board and Committee Meetings

The Company Secretary shall –

(i) Initiate the development of agenda for Board and Committee Meetings in consultation with the Board Chair, Committee Chairs and Management;

(ii) Facilitate in consultation with Chairman, Committee Chairs or MD/CEO, Noti�cation of meetings, preparation and distribution of agenda items etc. and ensure that;

(iii) Facilitate the practical arrangements for a Board meeting or Committee meeting, such as meeting room, transports, lunch/dinner/tea etc. as required;

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(iv) Attend Board and Committee meetings, and provide advice to the Chairman to support effective functioning of the Board or Committee and adherence to proper meeting procedure;

(v) Prepare accurate, complete minutes of meetings;

(vi) Where required, prepare and submit to the Directors accurate and complete proposal for written resolutions;

(vii) Arrange for signatures of minutes and written resolutions;

(viii) In conjunction with management, clearly communicate directives from the Board and Committees to the person responsible for carrying out the directives;

(ix) Retain and safeguard the of�cial Minute books and Corporate documents;

(x) Verify and Authorize Director’s expenses for performance of Board-related duties;

(xi) Review all minutes for consistency, appropriateness of recorded decisions and issues with broader implications;

(xii) Ensure that the record of minutes is at all times up to date;

(xiii) Act as a Secretary for all Board and Committee meetings.

• Duties and Responsibilities: Corporate Governance Services

The Company Secretary shall –

(i) Provide expertise and work with the Board Chairman to implement best practices in corporate governance by the Board and its Committees;

(ii) Provide advice and guidance to Directors and management regarding policies, directives and processes regarding corporate governance and tax issues related to the Board and Directors;

(iii) Be responsible for promoting strong corporate governance practices within the organization;

(iv) Draft and maintain all governance documentation including the Governance Manual in collaboration with the Board Chair;

(v) Work with the Board Chair to ensure continuous improvement of the Board of Directors;

(vi) Keep up to date on evolving corporate governance practices and trends;

(vii) Promote the role and responsibility of the Company Secretary both within the organization and externally, building networks to share ideas, discussing new trends in corporate governance and best practice;

(viii) Refer issues for legal review and opinions as required and may be directed to obtain advice on behalf of the Board;

(ix) Act as custodian for Company’s corporate and historical records, meeting minutes and related Board information;

(x) Maintain a record of consolidated Board motions.

• Duties and Responsibilities: Board Evaluation & Succession Planning Processes

The Company Secretary shall assist the Board and/or Committees-

(i) In evaluating and reporting on corporate governance commitments and the mandates of the various Committees;

(ii) In implementing and reporting on the annual processes to assess the performance of the Board, Committees, Chairs and individual Directors;

(iii) In implementing and reporting on the annual performance evaluation of the CEO;

(iv) Facilitating Board appointment and renewal processes, and addressing Committee structures, composition and mandates;

(v) In identifying and communicating any skill requirements for making recommendations to �ll Board vacancies;

(vi) Identifying and communicating the professional development needs of Directors.

• Duties and Responsibilities: Policy Framework The Company Secretary is responsible for-

o Overseeing the organization’s Policy Framework as approved by the Board;

o Providing advice and guidance to the Board, the MD/CEO and management on compliance with that framework.

• Duties and Responsibilities : Board Budget

The Company Secretary shall manage the Board budget and review and ensure the effective administration of Board expenditures including compliance with entitlements.

• Duties and Responsibilities: Transparency

The Company Secretary supports the Board’s commitment to transparency by-

o Ensuring continuous disclosure of the governance framework;

o Ensuring all external reporting requirements are met including in relation to the disclosure of Board meeting attendance, Board remuneration and expenses;

o Ensuring that the appropriate controls are in place in relation to access to board information;

o Ensuring the preparation of governance related materials for the Service Plan and Annual Service Plan Report in collaboration with the Board Chair.

• Duties and Responsibilities: CommunicationThe Company Secretary shall –

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(i) Be the liaison between the Board and the MD/CEO and Management and is the main contact for Directors;

(ii) Promote a strong and effective working relationship between the Board and management;

(iii) At the direction of the Board Chair, provide Directors with timely information between Board Meetings;

(iv) Ensure that all Directors have all the necessary information to discharge their responsibilities;

(v) Ensure that all Directors receive the same information to support the cohesive working relationship of the Board;

(vi) Develop templates and guidelines to support the preparation of appropriate brie�ng material;

(vii) Ensure that the appropriate tools and mechanisms are in place to manage Board information and communication to ensure that Directors are able to properly discharge their responsibilities;

(viii) Ensure that the appropriate technical support is available to the Board in relation to any online or paperless communication platforms;

(ix) Support the MD/CEO in ensuring that all decisions made by the Board, or the Board Chair, are clearly communicated to management in a timely manner and that all consequential actions are taken by the organization;

(x) Additionally ensure the con�dentiality of Board materials, records and deliberations as appropriate, or as directed by the Board Chair.

• Duties and Responsibilities: Code of Conduct & Con�ict of Interest

(i) The Company Secretary shall administer the Code of Conduct of the Board Members and advise the Board Chair in respect of any matters where con�ict, potential or real, may occur between the Board and its Members;

(ii) If there is a con�ict of interest, actual or potential, on any particular matter, between the Company Secretary’s administrative or managerial responsibilities within the Company and his/her responsibilities as a secretary to the Board, it is his responsibility to draw it to the attention of the Board.

• Duties and Responsibilities: Statutory & Legal Matters The Company Secretary shall -

(i) Keep under close review all legislative, regulatory and corporate governance developments that might affect the Company’s operations, and ensure the Board is fully briefed on these and that it has regard to them when taking decisions;

(ii) Ensure proper and timely documentary �lings and ful�llment of disclosure requirements to statutory

authorities under applicable legislation and policy;

(iii) Ensure that the standards and disclosures required by the different statutes are observed and, where required, re�ected in the annual report of the directors;

(iv) Make arrangements for and manage the process of the General Meetings;

(v) Maintain the Company’s books and records and ensure the security and application of the Company’s Common Seal;

(vi) Perform such other duties which usually pertain to the Company Secretary or which may be from time to time be prescribed by the Board or be required by law.

• Duties and Responsibilities: Special ProjectsAs directed and approved by the Board and its committees, the Company Secretary will undertake special projects ensuring that the Board has suf�cient information on the resources required to complete any proposed special projects.

Terms of Reference (TOR) for the Chief Financial Of�cer (CFO)

01. Appointment, Reporting Relationships and Accountability The CFO is a Senior Executive of the Company who

• Reports to the Chief Executive Of�cer (CEO); • Is also accountable to the Audit Committee;• Must have a broad understanding of the organization

and its operations to effectively carry out his/her responsibilities.

02. Roles, Responsibilities and Duties of the CFO The CFO, on behalf of the Board of Directors, is

responsible for• Following applicable Accounting Standards and

Financial Reporting Standards like IAS, BAS, IFRS and BFRS, and adequate disclosure for any departure there-from, if any;

• Compliance with application of appropriate accounting policies, and ensuring that accounting estimates are reasonable and prudent;

• Providing close cooperation in establishing effective internal �nancial control environment.

• As a Senior Executive, the CFO is responsible for leadership and management of the Company’s �nance and accounting functions and is responsible for

(i) The Company’s business planning, budgeting and forecasting processes, including coordination and integration of strategic and business plans for business segments, departmental cost centers and capital budgets;

(ii) The integrity of the Company’s accounting systems,

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sub-systems, internal controls, fund management, and managing the relationship with the external auditors;

(iii) The Company’s �nancial and business reporting, tax planning, estimating and reporting, and regulatory reporting (corporate and securities);

(iv) Management relationships with the Company’s bankers and investors, and leasing companies. Responsibility for capital planning and structure and the raising of equity or debt to fund the Company’s operations, investment analysis/presentations, and tracking of the Company’s market valuation;

(v) The �nancial analysis function which addresses product contribution and pricing/margins, the vetting of business cases and post reviews of completed/implemented initiatives, business analysis, operational ef�ciency and organizational and system capacity modeling/utilization;

• As a member of the senior management of the Company, the CFO shall

(i) Assist the CEO in

(a) Representing the Company in dealings with government and regulatory bodies;

(b) Maintaining relationships with outside agencies and strategic partners;

(c) Maintaining a policy of on-going communication with investors and representatives of the investment community.

(ii) Meet regularly and as required with the CEO to review material issues and to take reasonable steps to ensure that the CEO is provided in a timely manner with all the information he/she requires to ful�ll his/her statutory and other obligations;

(iii) Carry out analysis of assets and liability and submit recommendations to the management on a quarterly basis;

(iv) Recommend to the Management on how to match assets and liabilities according to short term and long term plan.

• The CFO shall have the following Responsibilities towards the Board of Directors

(i) To attend the board meetings and be part of the discussion having �nancial implication on relevant issues

(ii) To present to the board of directors information on the following in order to strengthen and formalize corporate decision making process:

(a) Annual business plans, cash �ow projection, forecasts and long term plans

(b) Budget including capital, manpower and overhead budgets along with variance analysis

(c) Quarterly operating results of the Company as a whole and in terms of its business segments

• The CFO shall have Responsibilities towards Shareholders to provide all the necessary data to be presented in the “Directors’ Report” and for this purpose CFO must ensure the following

(a) The �nancial statement, prepared by the management of Company, present fairly its states of affairs, the result of its operations, cash �ows and changes in equities

(b) Proper books of accounts of the Company have been maintained by the relevant units and that operation & computer controls are in place

(c) Appropriate accounting policies have been consistently applied in preparation of �nancial statements and accounting estimates are based on reasonable an d prudent judgment

(d) International accounting standards, as applicable in the country, have been followed in preparation of �nancial statements and any departure there from has been adequately disclosed

(e) There has been no material departure from the best practice of corporate governance as detailed in the listing regulations or applicable guidelines

(f) Internal and External Reporting

• As a part of routine work, the CFO shall be responsible for overseeing

(i) Coordination with the internal auditors for

statutory auditing

(ii) Asset Liability Management

(iii) Treasury division

(iv) Monitoring Cash Flows

(v) Consulting with other departments, businesses units and or af�liated companies to improve �nancial performance

(vi) Strategic �nancial planning/ capital budgeting

(vii) Cash forecasting

(viii) Financial risk management

(ix) Cash Management

(x) Short term investing

(xi) Short term borrowing

(xii) Budgeting and Accounting

(xiii) Designing a proper �nancial Model for the Business Plan

(xiv) based on data received from respective departments, carrying out analysis on

(a) Cost of fund

(b) Interest rates (both for deposits and lending)

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(xv) Identifying major pro�t and cost centers

(xvi) Maintenance of Investment in shares and securities

(xvii) Preparation of Financial Statements

• The CFO has extensive responsibilities for internal and external reporting, particularly-

o All the �nancial information required for decision-making by the Board of Directors and Chief Executive Of�cer is processed and furnished by the CFO.

o External reporting requirement is ful�lled by CFO, the accounts and �nancial statements are signed by the CFO before they are sent to concerned authorities.

Terms of Reference (TOR) for the Head of Internal Audit (HOIA)

01. Appointment, Reporting Relationships and Accountability

The HOIA is an employee of the Bank who-

• Reports administratively to the Chief Executive Of�cer (CEO) and operationally to the Chairman of the Audit Committee;

• Is also accountable to the Audit Committee;

• Is responsible primarily for giving assurance on the internal control arrangements in the Company and playing a key role in promoting good corporate governance;

• Must have a broad understanding of the organization and its operations to effectively carry out his/her responsibilities.

02. Roles, Duties and Responsibilities Roles, Duties and Responsibilities of the HOIA shall include-

(i) Audit Planning/Design

o To develop an annual audit plan using input from the team and stakeholders to identify priorities and resource requirements for the year to cover audit of all the activities of the Company;

o To meet with Directors and Managers to discuss needs and propose audits, to build stakeholder requirements into department plans;

o To ensure plan is developed to meet the Audit Committee’s expectations;

o To schedule and assign audits to team members, ensuring effective and ef�cient use of resources;

o To ensure quality control of the team’s audit plans on an ongoing basis by reviewing and approving plans as they are developed and communicated to clients;

o To ensure annual audit plans have contingency built in, to

provide unexpected audits to clients as they may surface;

o To report to the Audit Committee at the required intervals on Internal Audit assignments including planned reviews, investigations, risk advisory work and any other ad-hoc activity as required.

(ii) Conducting Audits

o To oversee and provide quality control for the internal audits, to ensure departmental mandate and business goals are met and that professional standards are maintained at all times.

o To ensure completion of audit assignments to provide independent, objective assurance to the Audit Committee.

o To develop the team’s engagement with and support of major business change programs thus ensuring that appropriate consideration of risk and control is given to all change.

(iii) Reporting

o To ensure that internal audit reports are prepared and �nalized in a timely manner and the same are submitted before the Audit Committee;

o To ensure that internal audit reports are issued with all recommendations agreed and accepted by the audited individual/unit.

(iv) People Management & Development

o To manage and oversee team performance through performance planning, coaching and performance appraisals;

o To hold direct reports accountable for managing and developing their assignments to ensure the department’s goals are achieved;

o To provide ongoing feedback to the team to ensure they develop the skills and competencies required for effective planning and individual professional and personal career growth;

o To motivate and inspire the team by providing them with the information and tools they need to do their jobs well and meet customer expectations;

o To deal with performance issues, discipline as necessary and address poor standards, ensuring department targets and customer satisfaction is not compromised;

o To manage the head count, recruiting and deploying resources as required, to ensure the department budget is balanced and the right mix of skills and strengths are being leveraged as effectively as possible.

(v) Improving the Practice of Audit/Championing Risk Management

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o To build relationships with leaders across the organization to understand issues and identify areas for improvement for the organization as a whole;

o To support and encourage team members to be proactive in identifying opportunities to share best practice with Directors and Managers to improve the control environment;

o To develop new methodologies to improve the audit process, making it easier for the organization to request audits and implement recommendations;

o To provide assistance to the business in meeting regulatory requirements;

o To keep abreast of developments in Corporate Governance practices and advise the business accordingly.

(vi) GeneralTo perform any other duties as are within the scope, spirit and purpose of the job, the title of the post and its grading as requested by the line manager or Head of Unit/Section/Department/Division.

Appointment of AuditorsM/S Kazi Zahir Khan & Co., Chartered Accountants, Dhaka was appointed as External Auditors of Social Islami Bank Limited by the Shareholders in its 19th Annual General Meeting at a fee of Taka 4,00,000/- for the year 2014 as per Companies Act 1994. M/S Kazi Zahir Khan & Co., Chartered Accountants, Dhaka will retire in the 20th Annual General Meeting of the Bank and are eligible for re-appointment for the year 2015.

PublicationThe full text of the Annual Report 2014 is available in the company’s website www.sibl-bd.com.

Investor’s Complain DeskThe bank has an Investor’s Complain Desk to investigate any matters related to the Investors. Any aggrieved investor may submit his complain or query to the following address

Company Secretary & Head ofInvestor Complain DeskCity Center, Level-2090/1 Motijheel C/A, Dhaka-1000Phone 88 02 09612001122, Fax 88 02 9568098email [email protected]

GratitudeThe members of the Board of Directors of SOCIAL ISLAMI BANK LTD. would like to place on record their gratitude to all the valued Shareholders, Clients, Patrons and Well-Wishers for their continued support and cooperation. We are also indebted to the Government of Bangladesh, Bangladesh Bank, Securities & Exchange Commission (SEC), Stock Exchanges, Other Banks & Financial institutions, Of�ce of the Registrar of Joint Stock Companies & Firms and all others concerned for their continued and kind support. Finally, the Board would like to place on record its deepest appreciation for the dedicated services rendered by all the employees of the Bank.

Ma-assalamOn behalf of the Board of Directors


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Corporate Governance Compliance Report Status of compliance with the conditions imposed by the Bangladesh Securities and Exchange Commission’s Noti�cation No: SEC/

CMRRCD/2006-158/134/Admin/44 dated 07 August, 2012 issued under section 2CC of the Securities and Exchange Ordinance, 1969

Condition Title

Compliance Status RemarksNo. Complied Not Complied

1. BOARD OF DIRECTORS:

1.1.0 Board’s Size

1.1 (Should not be less than 5 but not more than 20)

1.2 Independent Directors

1.2 (i) Independent Directors (At least 1/5th i.e. minimum one)

1.2 (ii) a) who either does not hold any share in the company or holds less than one percent (1%) shares of the total paid-up shares of the company

1.2 (ii) b) Who is not a sponsor of the company and is not connected with the company’s any sponsor or director or shareholder who holds one percent (1%) or more shares of the total paid-up shares of the company on the basis of family relationship. His/her family members also should not hold above mentioned shares in the company:

Provided that spouse, son, daughter, father, mother, brother, sister, son-in-law and daughter-in-law shall be considered as family members

1.2 (ii) c) who does not have any other relationship, whether pecuniary or otherwise, with the company or its subsidiary/associated companies

1.2 (ii) d) who is not a member, director or of�cer of any stock exchange

1.2 (ii) e) who is not a shareholder, director or of�cer of any member of stock exchange or an intermediary of the capital market

1.2 (ii) f) who is not a partner or an executive or was not a partner or an executive during the preceding 3 (three) years of the concerned company’s statutory audit �rm

1.2 (ii) g) who shall not be an independent director in more than 3 (three) listed companies

1.2 (ii) h) who has not been convicted by a court of competent jurisdiction as a defaulter in payment of any loan to a bank or a Non-Bank Financial Institution (NBFI);

1.2 (ii) i) who has not been convicted for a criminal offence involving moral turpitude

1.2 (iii) the independent director(s) shall be appointed by the board of directors and approved by the shareholders in the Annual General Meeting (AGM)

1.2 (iv) the post of independent director(s) cannot remain vacant for more than 90 (ninety) days

1.2 (v) the Board shall lay down a code of conduct of all Board members and annual compliance of the code to be recorded

1.2 (vi) the tenure of of�ce of an independent director shall be for a period of 3 (three) years, which may be extended for 1 (one) term only.

1.3 Quali�cation of Independent Director (ID)

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Condition Title


1.3 (i) Independent Director shall be a knowledgeable individual with integrity who is able to ensure compliance with �nancial, regulatory and corporate laws and can make meaningful contribution to business

1.3 (ii) The person should be a Business Leader/ Corporate Leader / Bureaucrat / University Teacher with Economics or Business Studies or Law background/Professionals like Chartered Accountants, Cost & Management Accountants, Chartered Secretaries. The independent director must have at least 12 (twelve) years of corporate management/ professional experiences

1.3 (iii) In special cases the above quali�cations may be relaxed subject to prior approval of the Commission

1.4 Chairman of the Board and Chief Executive Of�cer

1.5 The Director’s Report to Shareholders

1.5 (i) Industry outlook and possible future developments in the industry

1.5 (ii) Segment-wise or product-wise performance

1.5 (iii) Risks and concerns

1.5 (iv) A discussion on Cost of Goods sold, Gross Pro�t Margin and Net Pro�t Margin

1.5 (v) Discussion on continuity of any Extra-Ordinary gain or loss

1.5 (vi) Basis for related party transactions - a statement of all related party transactions should be disclosed in the annual report

1.5 (vii) Utilization of proceeds from public issues, rights issues and/or through any others instruments

1.5 (viii) An explanation if the �nancial results deteriorate after the company goes for Initial Public Offering (IPO), Repeat Public Offering (RPO), Rights Offer, Direct Listing, etc.

1.5 (ix) If signi�cant variance occurs between Quarterly Financial performance and Annual Financial Statements the management shall explain about the variance on their Annual Report

1.5 (x) Remuneration to directors including independent directors

1.5 (xi) The �nancial statements prepared by the management of the issuer company present fairly its state of affairs, the result of its operations, cash �ows and changes in equity

1.5 (xii) Proper books of account of the issuer company have been maintained

1.5 (xiii) Appropriate accounting policies have been consistently applied in preparation of the �nancial statements and that the accounting estimates are based on reasonable and prudent judgment

1.5 (xiv) International Accounting Standards (IAS)/ Bangladesh Accounting Standards (BAS)/ International Financial Reporting Standards (IFRS)/ Bangladesh Financial Reporting Standards (BFRS), as applicable in Bangladesh, have been followed in preparation of the �nancial statements and any departure there-from has been adequately disclosed

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1.5 (xv) The system of internal control is sound in design and has been effectively implemented and monitored

1.5 (xvi) There are no signi�cant doubts upon the issuer company’s ability to continue as a going concern. If the issuer company is not considered to be a going concern, the fact along with reasons thereof should be disclosed

1.5 (xvii) Signi�cant deviations from the last year’s operating results of the issuer company shall be highlighted and the reasons thereof should be explained

1.5 (xviii) Key operating and �nancial data of at least preceding 5 (�ve) years shall be summarized

1.5 (xix) If the issuer company has not declared dividend (cash or stock) for the year, the reasons thereof shall be given

1.5 (xx) The number of Board meetings held during the year and attendance by each director shall be disclosed

1.5 (xxi) The pattern of shareholding shall be reported to disclose the aggregate number of shares (along with name wise details where stated below) held by

1.5 (xxi) a) Parent/Subsidiary/Associated Companies and other related parties (name wise details)

1.5 (xxi) b) Directors, Chief Executive Of�cer, Company Secretary, Chief Financial Of�cer, Head of Internal Audit and their spouses and minor children (name wise details)

1.5 (xxi) c) Executives

1.5 (xxi) d) Shareholders holding ten percent (10%) or more voting interest in the company (name wise details)

1.5 (xxii) In Case of the appointment/re-appointment of a director the company shall disclose the following information to the shareholders

1.5 (xxii) a) a brief resume of the director

1.5 (xxii) b) nature of his/her expertise in speci�c functional areas

1.5 (xxii) c) names of companies in which the person also holds the directorship and the membership of committees of the board

2.0 CHIEF FINANCIAL OFFICER (CFO), HEAD OF INTERNAL AUDIT AND COMPANY SECRETARY(CS)

2.1 Appointment: The company shall appoint a Chief Financial Of�cer (CFO), a Head of Internal Audit (Internal Control and Compliance) and a Company Secretary (CS). The Board of Directors should clearly de�ne respective roles, responsibilities and duties of the CFO, the Head of Internal Audit and the CS.

2.2 Requirement to attend the Board Meetings: The CFO and the Company Secretary of the companies shall attend the meetings of the Board of Directors, provided that the CFO and/or the Company Secretary shall not attend such part of a meeting of the Board of

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Directors which involves consideration of an agenda item relating to their personal matters.

3. AUDIT COMMITTEE

3(i) The company shall have an Audit Committee as a sub-committee of the Board of Directors

3(ii) The Audit Committee shall assist the Board of Directors in ensuring that the �nancial statements re�ect true and fair view of the state of affairs of the company and in ensuring a good monitoring system within the business

3(iii) The Audit Committee shall be responsible to the Board of Directors. The duties of the Audit Committee shall be clearly set forth in writing

3.1 Constitute of the Audit Committee

3.1(i) Size of the Audit Committee (Should be at least 3 members.)

3.1(ii) The Board of Directors shall appoint members of the Audit Committee who shall be directors of the company and shall include at least 1 (one) independent director

3.1(iii) All members of the audit committee should be “�nancially literate” and at least 1 (one) member shall have accounting or related �nancial management experience

3.1(iv) When the term of service of the Committee members expires or there is any circumstance causing any Committee member to be unable to hold of�ce until expiration of the term of service, thus making the number of the Committee members to be lower than the prescribed number of 3 (three) persons, the Board of Directors shall appoint the new Committee member(s) to �ll up the vacancy (ies) immediately or not later than 1 (one) month from the date of vacancy(ies) in the Committee to ensure continuity of the performance of work of the Audit Committee

3.1(v) The company secretary shall act as the secretary of the Committee.

3.1(vi) The quorum of the Audit Committee meeting shall not constitute without at least 1 (one) independent director.

3.2 Chairman of the Audit Committee

3.2(i) The Board of Directors shall select 1 (one) member of the Audit Committee to be Chairman of the Audit Committee, who shall be an independent director

3.2(ii) Chairman of the audit committee shall remain present in the Annual General Meeting (AGM)

3.3 Role of Audit Committee

3.3(i) Oversee the �nancial reporting process

3.3(ii) Monitor choice of accounting policies and principles

3.3(iii) Monitor Internal Control Risk management process

3.3(iv) Oversee hiring and performance of external auditors

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3.3(v) Review along with the management, the annual �nancial statements before submission to the board for approval

3.3(vi) Review along with the management, the quarterly and half yearly �nancial statements before submission to the board for approval

3.3(vii) Review the adequacy of internal audit function

3.3(viii) Review statement of signi�cant related party transactions submitted by the management

3.3(ix) Review Management Letters/Letter of Internal Control weakness issued by statutory auditors

3.3(x) When money is raised through Initial Public Offering (IPO)/Repeat Public Offering (RPO)/Rights Issue the company shall disclose to the Audit Committee about the uses/applications of funds by major category (capital expenditure, sales and marketing expenses, working capital, etc), on a quarterly basis, as a part of their quarterly declaration of �nancial results. Further, on an annual basis, the company shall prepare a statement of funds utilized for the purposes other than those stated in the offer document/prospectus

3.4 Reporting of the Audit Committee

3.4.1 Reporting to the Board of Directors

3.4.1(i) The Audit Committee shall report on its activities to the Board of Directors

3.4.1(ii)a) The Audit Committee shall immediately report to the Board of Directors on con�icts of interests

3.4.1(ii)b) suspected or presumed fraud or irregularity or material defect in the internal control system

3.4.1(ii)c) suspected infringement of laws, including securities related laws, rules and regulations

3.4.1(ii)d) Any other matter which shall be disclosed to the Board of Directors immediately.

3.4.2 Reporting to the Authority

3.5 Reporting to the Shareholders and General Investors

4. EXTERNAL/STATUTORY AUDITORS

4.(i) Non-engagement in appraisal or valuation services or fairness opinions

4.(ii) Non-engagement in �nancial information systems design and implementation

4.(iii) Non-engagement in book-keeping or other services related to the accounting records or �nancial statements

4.(iv) Non-engagement in broker-dealer services

4.(v) Non-engagement in actuarial services

4.(vi) Non-engagement in internal audit services

4.(vii) Non-engagement in any other service that the Audit Committee determines

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4.(viii) No partner or employees of the external audit �rms shall possess any share of the company they audit at least during the tenure of their audit assignment of that company

4.(ix) Non-engagement in audit/Certi�cation Services in Compliance of Corporate Governance as required under clause (i) of condition No.7

5. SUBSIDIARY COMPANY

5.(i) Provisions relating to the composition of the Board of Directors of the holding company shall be made applicable to the composition of the Board of Directors of the subsidiary company

5.(ii) At least 1 (one) independent director on the Board of Directors of the holding company shall be a director on the Board of Directors of the subsidiary company

5.(iii) The minutes of the Board meeting of the subsidiary company shall be placed for review at the following Board meeting of the holding company

5.(iv) The minutes of the respective Board meeting of the holding company shall state that they have reviewed the affairs of the subsidiary company also

5.(v) The Audit Committee of the holding company shall also review the �nancial statements, in particular the investments made by the subsidiary company

6. DUTIES OF CHIEF EXECUTIVE OFFICER(CEO) AND CHIEF FINANCIAL OFFICER(CFO)

6.(i)a) The �nancial statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading

6.(i)b) these statements together present a true and fair view of the company’s affairs and are in compliance with existing accounting standards and applicable laws

6.(ii) There are, to the best of knowledge and belief, no transactions entered into by the company during the year which are fraudulent, illegal or violation of the company’s code of conduct

7.0 REPORTING AND COMPLAINCE PEPORTING OF CORPORATE GOVERNANCE

7.(i) The company shall obtain a certi�cate from a practicing Professional Accountant/Secretary (Chartered Accountant/Cost and Management Accountant/Chartered Secretary) regarding compliance of conditions of Corporate Governance Guidelines of the Commission and shall send the same to the shareholders along with the Annual Report on a yearly basis

7.(ii) The directors of the company shall state, in accordance with the Annexure attached, in the directors’ report whether the company has complied with these conditions

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Report on National Integrity Strategy

Integrity means behavioral excellence in�uenced by morality and honesty and adherence to time-tested norms, values, customs and principles of a society. At the individual level, it means being duty-bound and honest.

National Integrity Strategy (NIS) is a living document of the Bangladesh Government towards the vision 2020 with the hope that this NIS will play its desired role in building the Bangladesh as “Golden Bengal”.

Bangladesh Government has undertaken programs through NIS to establish a system of governance that creates trust among citizens. The NIS recognizes that the state’s legal institutions require watchdogs within the general population to keep it accountable. For this reason, the strategy targets a broad audience like State and Non State Organizations with the vision to build this country as “Golden Bengal” where the mission is to establish good governance in the state institutions and society. Followings are the Challenges of NIS in State Organizations.

• Promulgation of Civil Service Act; • Increased functional freedom of public service with

stronger accountability; • Enhanced ef�ciency and effectiveness in administrative

activities; • Establishing links between promotion, transfer, pay and

emoluments with appraised performance; • Introduction of a competitive pay and incentive structure; • Overall reform by ensuring equitable opportunities for

different cadre services; • Building citizen-friendly enforcement agencies; • Fair, neutral and visible decision-making in public

administration.

National Integrity Strategy in Commercial Organizations in the Private Sector- The private sector is playing an increasingly important role in the socio-economic sector and contributing to wealth creation and value addition to meet the demand of the population. Integrity of this sector is of paramount importance. The culture of loan-default needs to be eliminated beside that ‘Protection of Consumer Rights Act’ has to be implemented properly. The main challenges in this regards are:

• Addressing of the loan-default problem;• Promotion of corporate governance; • Awarding of performance-based fair salary and wages to

the employees;• Proper enforcement of the laws on consumer rights and

bankruptcy;• Prevention of collusive practices in business by enforcing

the Competition Act;• Promotion of a culture of self-control by Chambers and

Associations.

To support the total activities of the Government of Bangladesh in establishing NIS, Social Islami Bank Limited has formed a 7 (seven) members Committee called “SIBL Integrity Committee” as per BRPD Circular No 21 dated 12 November 2013 headed by Additional Managing Director along with nomination a Focal Point Of�cer. The committee has undertaken the responsibilities to work closely with the Bangladesh Bank and Bangladesh Government to implement the NIS and in this regard work plans have also been �nalized. The Prime objective of this committee is to prevent corruption and to establish integrity in every sphere of the bank as well as in the State and society.

SOCIAL ISLAMI BANK LTD (SIBL), a second-generation bank, operating since 22 November 1995 based on Shariah Principles, has now 100 branches all over the country with two subsidiary companies - SIBL Securities Ltd. & SIBL Investment Ltd. It is a prime goal and responsibility of the SIBL to secure fundamental human rights, and ensure equality of opportunity and dispensation of economic and social justice. SIBL is dedicated to ensuring employee’s welfare.

We believe that the issue of integrity should not stop at the top level of institutions. Rather, each institution is expected to �nd mechanisms to implement institution-speci�c strategies at different tiers to implement National Integrity Strategy. During the year under review, total 4 (four) meetings of SIBL Integrity Committee were held.

Steps should be taken for Promotion of Integrity: • To ensure the attainment of a just and egalitarian society,

free from exploitation of man to man.• To guarantee fundamental human rights and freedom.• To respect human dignity and worth of the human.• To create equal opportunity for all citizens.• To remove social and economic inequality between man

and man and ensure equitable distribution of wealth and opportunities among citizens.

• To ensure participation of women in all spheres of national life.

• To pay everyone for his work on the basis of the principle “from each according to his abilities to each according to his work”.

Mohammad Shoeb, FCAFocal Point Of�cerSIBL Integrity Committee

Ihsanul AzizAdditional Managing Director & Chairman of SIBL Integrity Committee

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The board of Directors of the bank has made an annual assessment whether there exists a material uncertainty which may be an indicative of signi�cant doubt about SIBL’s ability to continue as going concern. In this regard, the Board of Directors of the bank has made appropriate inquiries, analysis, review and estimation in the backdrop of existing and future �nancial and operational strength of the bank. The Board of Directors are convinced and provide a reasonable assurance to the stakeholders as to SIBL’s continuity as a going concern for the foreseeable future and accordingly the bank has been adopting the ‘going concern’ basis for preparing �nancial statements. The �nancial performance of the bank was good and improving steadily over the years. While analyzing the 5 years comparative �nancial position of the bank as depicted in page no 49 of this Annual Report 2014, we �nd that all the basic indicators of the bank is positive and the bank is moving towards its way of ‘Journey towards continuous excellence’ leaving a growth curve.

• Gaining public con�dence day by day. Both deposits and investment are maintaining upward trend over the previous years.

• Built an excellent regulatory compliance culture.• Practicing best Corporate Governance. • Introducing state-of-the-art Information & Technology.• Invented IT-based diversi�ed products and services

that are tailored to different economic class of people of the society in order to bring the un-banked people into banking channels.

• Motivated employees, excellent working work force & team spirit, competitive pay scale & long term bene�ts.

• Outstanding Assets Liability Management for proper liquidity planning & management.

• Expanded area of operation from urban to rural.• Effective Risk management system.• Outstanding asset quality.• Outstanding Credit Rating both in short term and long

term.• Excellent public communication, branding and media

image.• Paying dividend consistently.• Positive key �nancial indicators.

Banking business involves a high degree of risk and SIBL is operating in an industry involving both external and internal risk factors having direct as well as indirect effects on the �nancial position. Here, the Board of Directors of the Bank has carefully analyzed the �nancial position of

Report on Going Concern

the bank and estimated the issue of continuity of the bank as going concern considering some risk factors that may seriously effects. If any of the following risks actually occur, business, results of operations and �nancial condition could suffer.

(A) Pro�t Rate & Foreign Currency RisksVolatility in money market both in local and foreign, increase in Investment demand, Increase Import and decrease exports, slow remittance etc. may raise the rate of pro�t on deposit & borrowings including foreign currency. The Bank’s �nancing in different sectors is generally structured at �xed and variable rates for speci�ed terms. A change in the Government’s monetary policy also tends to increase the rates. Increase in pro�t rates or non-availability of Foreign Currency could adversely affect the bank’s operations.

Management perceptionAlthough the consequences of unusual and abrupt increase in the deposit and borrowing rate cannot be avoided, Social Islami Bank Ltd. (SIBL) takes all the appropriate measures to minimize the negative consequences. For pro�t rate risks, the Bank currently pursues a policy under which pro�t rates can be revised for any unusual and abrupt change at its own discretion as and when required. Moreover, SIBL foreign exchange risk remains at minimum level as all of its foreign trade & remittance transactions are carried out on behalf of the customers and there is no direct selling or buying of foreign currency i.e. dealing room operation. The demand of foreign currency payment is mostly backed by Exports earnings and remittance. Treasury continuously monitors price movements of foreign exchange and uses various hedging techniques to manage its open position in such a way that minimizes risk and maximizes return. (B) Non-payment RiskNon-payment risk can arise if the Bank becomes unable to repay to its depositors over the counter or on time due to the impacts of (i) global �nancial crisis (ii) pre-matures encashment (iii) economic recession (iv) natural calamity (v) international sanctions (vi) adverse classi�cation of investments (vii) serious liquidity crunch (viii) assets liability mismatch (ix) limit less ID ratio etc. may have a direct negative impact on cash �ow and pro�tability of the bank. The situation would fell the bank into serious trouble.

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Management perceptionThe management of SIBL is always concerned about the prevailing and upcoming future changes in the global �nancial policies and shall response appropriately and timely to safeguard its interest. The Bank has a very strong �nancial background as well as cash �ow along with diversi�ed business package, that’s why the risk is very negligible. Moreover, the bank has a clear policy to maintain its ID Ratio (Investment Deposit Ratio) to 89.50% and an ideal deposit mix. Structured liquidity pro�le of the bank shows that all assets and liabilities are being well managed and shaped. The bank has speci�c policy guidelines on ‘stress liquidity management’. Besides that, ALCO (Asset Liability Committee) of the bank is a powerful committee entrusted with the overall liquidity management. So the bank believe that if for some unwanted situation excessive premature encashment occurs over the counter, capable to shape up things. In the history of operation, SIBL has not recorded a single case of ‘Non-Payment’. (C) Managements RiskThere may arise Management Risk in the Bank, which associates ineffectiveness, con�ict of interest, destructive, or under-performing management that may hamper the smooth operation of the Bank and fell the organization in a question of going concern.

Management perceptionSocial Islami Bank Limited (SIBL) has a very effective and competent management, which consistently makes effective policy decision. Since inception up-to 31.12.2014, the Board of Directors of the Bank has discharged their duties and responsibilities through 328 number of board meeting. The Board of Detectors has formulated code of conducts including role and responsibilities for its Chairman, Board Member, Managing Director, Company Secretary, Chief Financial Of�cer & Head of Internal Control & Compliance Division of the Bank. The bank is a compliant of corporate governance system imposed by Bangladesh Securities and Exchange Commission (BSEC) and there is no such evidence recorded so far which amounts to- management risk.

(D) Operational RiskOperational risk is the risk of potential losses from a breakdown in internal processes and systems, de�ciencies in people and management or operational failure arising from external events which may seriously shake the entity towards its continuation as going concern.

Management perceptionThe internal control and compliance division of the bank controls the operational procedure of the Bank. Internal Control and compliance division undertakes periodical and special audit of the Branches and departments at the

Head Of�ce to review the operation and compliance of statutory requirements. The Audit Committee of the Board subsequently reviews the reports of the internal control and compliance division. So, the bank is aware about its operational risk and accordingly policies and procedures are regularly been reviewed by the Board of Directors of the bank to ensure risk free operation. (E) Business RiskThe bank may face business risk while doing their banking business. Business risk implies uncertainty in pro�t or danger of loss and the events that could pose a risk due to some unforeseen events in future, which causes business of SIBL to fail. Moreover, strong competitor in the industry may compel SIBL to squeeze its operations or may invite hard competitions

Management perceptionSIBL has a very good pro�tability record and the management is well aware about business risk. The Bank is operating in a highly competitive market as modern banking industry has brought greater business diversi�cation. The Bank has a dedicated team to �nd new scope to expand its business. The risk management team is working to identify and manage different types of risk including business risk. SIBL Securities Limited and SIBL Investment Limited are the subsidiaries of SIBL incorporated with the objective to carry on the business of stock brokers, dealers in relation to shares and securities dealings, to underwrite, manage and distribute the issue of stocks etc. Thus, SIBL also reduces the industry risk by making versatile opportunity of business in the �nancial sector. Moreover, to make the operation competitive, the bank has implemented one of the best world class Information Technology platform in the bank to ensure faster and safer delivery of services to the customers on 24/7 basis. The bank has built up its alternative delivery channel infrastructure to offer the full suite of ATMs, POS, Internet Banking, and SMS banking for its customers. In order to support its growth strategies in future, the bank has made a strategic decision to change its core banking software to a more robust and internationally tested system. As its unique contribution to a truly broad-based and participatory electronic banking system in Bangladesh, SIBL currently has a wide coverage of 100 Branches, as on December 31, 2014. So, the board of directors estimated that there is no sign that the bank fall in trouble on the ground of business risk and hard competitions.

(F) Potential or Existing Government RegulationsThe Bank operates under the speci�c guidelines laid down by Bangladesh Bank, Bangladesh Securities and Exchange Commission (BSEC) and other regulatory authorities. The Bank also operates under Companies Act 1994 and other related regulations, Bank Companies Act 1991, Income Tax Ordinance 1984, Value Added Tax (VAT) Act 1991 and Value Added Tax (VAT) Rules 1991. Any abrupt change

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of the policies made by the regulatory authorities may adversely affect the business of the Company.

Management perceptionUnless any policy change negatively and materially affects the industry as a whole, the business of the Bank is expected not to be affected signi�cantly. Like all Scheduled Banks in Bangladesh, SIBL’s asset growth and cost of CRR and SLR are adjustable as per requirement.(G) Potential Changes in Global or National PoliciesA �nancial institution’s ability to operate a pro�table business is directly related to the monetary and �scal policy of the country at any given time. Imposition of restrictive monetary and/or �scal policy by the government at any time may affect a company’s pro�tability. Again, change in the existing global or national policies can have either positive or negative impacts for the Bank.

Management perceptionThe management of SIBL is always concerned about the prevailing and upcoming future changes in the global or national policy and responds appropriately and timely to safeguard its interest.

(H) History of Non-Operation Is there any history for the Bank to become non-operative from its commercial operation.

Management perceptionThe Social Islami Bank Limited (SIBL), a second-generation bank, was incorporated on November 05, 1995. SIBL started its commercial operation on November 22, 1995 and completed 19 (Nineteen) year successful banking operation based on Shariah Principles without having any history of non-operation. SIBL has now 100 branches all over the Country with two subsidiary companies - SIBL Securities Ltd. & SIBL Investment Ltd. Targeting poverty, The Social Islami Bank Limited is indeed a concept of 21st century participatory three sector banking model in one. In the formal sector, it works as an Islamic participatory Commercial Bank with human face approach to credit and banking on the pro�t and loss sharing. The Bank is an independent body that is operated by its Memorandum & Articles of Association and other applicable laws implemented by the Government of Bangladesh. Besides, the Bank’s �nancial strength is satisfactory. It has highly experienced Directors and Management team which makes the Bank more ef�cient and stronger for any commercial operations. So, the chance of becoming non-operative for the Bank is minimum.

(I) Portfolio Management RiskPoor quality of project appraisal, slack monitoring of outstanding debts, inadequate/inappropriate documentation and other forms of management ef�ciencies may affect the quality of SIBL portfolio. Management perceptionUnder the close supervision of SIBL’s prudent shareholders and the Board of Directors, the management of SIBL has developed skills and ability to appraise a project ef�ciently, ascertain the risk factors, address them and monitor performance closely.

(J) Credit/investment RiskSome of the customers or obligators may fail to meet the terms of any contract or otherwise fail to perform as agreed which will in turn reduce the pro�t of the Bank, decreasing shareholders’ earning.

Management perceptionConsidering the key elements of credit risk, the Bank has segregated duties of the of�cers/executives involved in credit related activities. Separate division for Corporate, SME and retail has been formed which are entrusted with the duties of maintaining effective relationship with the customers, marketing of credit products, exploring new business opportunities etc. for transparency in the operation during the entire credit period–i) Investment Approval Committee, ii) Investment Administration Department, iii) Recovery Unit and iv) Impaired Asset management have been set up. Based on the above discussion, Board of Directors of the bank anticipated that it is appropriate to adopt going concern assumptions and there is no material uncertainty in preparing �nancial statements.

Ma-assalamOn behalf of the Board of Directors


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Name of the Member Tenure of Membership No. of Meetings held No. of Meetings Attended

Mr. Md. Abdur Rahman 26.08.2013 to till date 09 09

Mr. Abdul Mohit 26.08.2013 to till date 09 08

Mr. Mohammad Azam 13.11.2012 to 12.08.2014 07 07

Mr. Md. Anisul Hoque 26.08.2013 to 27.06.2014 06 06

Mr. Md. Abdur Razzaque 28.06.2014 to till date 03 03

Major Gen. Fazle Elahi Akbar (Retd.) 28.06.2014 to till date 03 03

Mr. Md. Kamal Uddin 30.12.2014 to till date - -

The Report of Audit Committee of the Board

Composition of the Audit Committee: The Audit Committee of the Board was duly constituted by the Board of Directors of the Bank with a view to evaluate

the activities of the Bank as per guidelines laid down in the BRPD Circular Number 11 dated October 27, 2013 of Bangladesh Bank.

• As on December 31, 2014 the following Directors were the Members of the Audit Committee:

Meetings of the Audit Committee:The Committee had nine (09) meetings during the year 2014. Attendance of the Members was as follows:

SI. No. Name Status with the Bank Status with the Committee

1. Mr. Md. Abdur Rahman Independent Director Chairman

2. Mr. Md. Kamal Uddin Director Co-Chairman

3. Mr. Abdul Mohit Independent Director Member

4. Mr. Md. Abdur Razzaque Director Member

5. Major Gen. Fazle Elahi Akbar (Retd.) Independent Director Member

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Disclosure by Audit Committee:

o The Committee reviewed the �nancial statements of the �rst quarter, half year, third quarter and the full year 2014

and subsequently recommended to the Board for consideration and approval;

o The Committee also reviewed the work of the Internal Audit Department and made suggestions for improvement;

o The Committee recognized the observations of the Internal Audit Department regarding internal control and

suggestions made to improve operational systems and procedures and their implementation;

o The Committee reviewed the integrity of the �nancial statements of the Company to ensure that these re�ect a true

and fair view of the Company’s state of affairs for the year ended on 31st December 2014;

o The Committee while reviewing the �nancial statements ensured that proper disclosure required under International

Accounting Standards as adopted in Bangladesh have been made and also complied with the Companies Act and

various other rules and regulations applicable for business;

o The Committee discussed with the statutory auditors about the nature and scope of audit as well as had post- audit

discussions to address areas of concern;

o The Committee approved the internal audit plan and gave direction to the Internal Auditor where appropriate for

carrying out in depth audit to ensure that the Company or its assets are not exposed to undue risk;

o The Committee reviewed the Internal Auditors reports and suggested appropriate actions where needed. Internal

Auditors were also advised to carryout audit of all the branches in each year.

o The Committee reviewed the management report submitted by the statutory auditors and suggested corrective

measures and �xed time frame for their implementation;

o The Committee reviewed the performance of External Auditors during the last year and recommended for approval

of their appointment;

o Pursuant to Condition # 3.4.1 of the Corporate Governance Guidelines issued by BSEC, the Committee reviewed

the Internal Control System and Financial Statements. The Committee did not �nd any con�ict of interest or any

fraud, irregularity, material defect in the Internal Control System;

o The Committee is of the view that risk management associated with the banking business is adequately controlled;

o The Committee also reviewed the �nancial statements/investments of the subsidiaries i.e. SIBL Securities Limited

and SIBL Investment Limited.

On behalf of the Audit Committee.

Md. Abdur Rahman

Chairman of the Audit Committee

January 28, 2015.

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Report on Risk Management

In accordance with the roadmap /action plan (Ref. BRPD Circular no. 14, dated 30 December 2007), Bangladesh Bank has decided to start implementation of Risk Based Capital Adequacy for Banks prepared in line with the “International Convergence of Capital Measurement and Capital Standards” as recommended by Basel Committee on Banking Supervision (BCBS) from January 2010. This standard is based on the three pillars mainly named as:i. Minimum capital requirements to be maintained

by the bank against Investment Risk, Market Risk and Operational Risk.

ii. Process for assessing overall Capital Adequacy in relation to the bank’s risk pro�le and a strategy for maintaining its capital at an adequate level.

iii. To make public disclosure of information on the bank’s risk pro�les, capital adequacy and risk management system.

Capital Base for Minimum Capital requirement: For the purpose of calculating regulatory capital requirement, capital is categorized into the following three tiers:1) Tier I Capital: Tier I capital, also called ‘Core Capital’,

comprises of highest quality capital elements and includes: a) Paid up capital/capital deposited with Bangladesh Bank b) Non-repayable share premium account c) Statutory Reserve d) General Reserve e) Retained Earnings f) Minority Interest in subsidiaries g) Non-Cumulative irredeemable Preference Shares and h) Dividend Equalization Account

2) Tier II Capital: Tier II capital is also called ‘Supplementary Capital’ which represents some of the characteristics of the Core capital and contribute as the overall strength of a bank like as a) General Provision b) Asset Revaluation Reserves c) All other Preference Shares d) Perpetual Subordinated Debt e) Exchange Equalization Account f) Revaluation Reserves for Securities

3) Tier III Capital: Tier III capital is called ‘Additional Supplementary Capital’, consisting of short-term subordinated debt (original/ residual maturity less than or equal to �ve years but greater than or equal to two years) is meant solely for the purpose of meeting a proportion of the capital requirements for market risk.

Supervisory Review Process of the BankThe key principle of the supervisory review process of the banks is that-the bank has a process for assessing overall capital adequacy in relation to our risk pro�le and a strategy for maintaining the bank’s capital at an adequate level. In this regard SIBL has an exclusive body and process documents for assessing overall risk pro�le and the strategy to maintain adequate capital. Adequate capital means enough capital to compensate all the risks involved in bank business and to develop and practice better risk

management techniques to monitor and managing risks.

Supervisory Review Process of SIBL

i) The supervisory review process is planned not only to ensure adequate capital to compensate all the risks in business, but also to be con�dent that the bank has better risk management techniques in monitoring and managing risks.

ii) It sets our bank management’s responsibility for developing an internal capital assessment process and setting capital targets that are commensurate with the bank’s risk pro�le under control environment. It also encourages bank management to continue and to bear responsibility for ensuring that the bank has adequate capital to support its risks beyond the minimum regulatory requirements.

iii) Maintaining adequate capital is not regarded as a substitute for addressing fundamentally inadequate control or risk management processes. The process will establish relationship between the planning of adequate capital against all risks and the strength and effectiveness of the bank’s risk management and internal control processes.

iv) The process is considered that following three main areas of risks are focused a) Risks covered under minimum regulatory capital, b) Other risks which are not captured by minimum regulatory capital, (e.g., credit concentration risk, interest rate risk in the Banking Book, business and strategic risk); and c) Risk factors external to the bank (e.g., business cycle effects).

v) A further important aspect of bank’s own supervisory review process is that the review body is responsible to move gradually towards more advanced approaches for calculation of risk weighted asset against Investment Risk, Capital Charges against Market Risk and Operational Risk.

Main features of review processIn assessing capital adequacy, the management of the bank is watchful on different particular stage of business cycle in which the bank is operating. Rigorous, forward-looking, stress testing etc. that identi�es possible events or changes in market conditions that could adversely impact the bank is performed- are forecasted at an early stage. Bank management is keen for ensuring bank’s adequate capital to support its risks. The �ve main features of a rigorous process are a) Board and senior management oversight b) Sound capital assessment c) Comprehensive assessment of risks d) Monitoring and reporting and e) Internal control and review.

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Performance of SIBL regarding maintenance of capital as per Basel-II As per Basel-II requirement, Social Islami Bank Limited has been maintaining capital adequacy adequately to support the Investment policy, Risk management policy of the bank which ultimately supporting the overall growth of the bank. It appears from the above table that SIBL has been maintaining its CAR adequately to cope up with the requirement. Total capital has increased from Tk 1,2050.50 million to Tk. 1,3078.26 million (From the quarter to 31.03.2014 to 31.12.2014) registering an increase of 8.53%.

Mohammad Shoeb FCASenior Vice PresidentHead of Risk Management Division

Internal Capital Adequacy Assessment Process (ICAAP)We have already established our model for ICAAP. Some experienced and ef�cient members are monitoring the process on a regular basis. As a result of that considering all the probable risk factors we have decided to maintain a surplus capital @ 3% on MCR amount in order to safeguard our bank’s RWAs.

Market DisciplineScope and purposea) The purpose of Market Discipline in the Revised Capital

Adequacy Framework is to complement the minimum capital requirements and the supervisory review process. The aim of introducing Market Discipline in the revised framework is to establish more transparent and more disciplined �nancial market so that stakeholders can assess the position of our bank regarding holding of assets and to identify the risks relating to the assets and capital adequacy to meet probable loss of assets. For this purpose, SIBL has developed a set of disclosure

containing - key information on assets, risk exposures, risk assessment processes so that capital of the bank remain adequate to meet all the risks.

b) SIBL has a formal disclosure framework approved by the management. The process of the disclosures includes validation and frequency.

Disclosure frameworkThe following components are the disclosure requirements:a) Assets b) Credit Risk on Banking Book c) Market risk in Trading Book d) Operational Risk e) Speci�c Provisions, f) Regulatory Capital and g) Capital AdequacyIn light of the above discussion and framework for implementation of Basel-II, SIBL is ready to face the challenge and the bank has a total eligible capital of Taka 13078.26 million as at 31 December 2014 against required capital of Taka 11511.95 million as a percentage (10%) of total risk weighted assets of Taka 115119.51 million as per Basel II requirement.

Comparative Analysis of Capital maintained throughout the year 2014in million Taka

Particulars 31.03.2014 30.06.2014 30.09.2014 31.12.2014

Capital Requirement 10,672.60 10,972.40 11,230.70 11,511.95

Capital Maintained 12,050.50 11,533.10 11,823.00 13,078.26

Core capital 10,396.30 9,759.80 9,862.90 11,087.77

Supplementary capital 1,654.20 1,773.30 1,960.10 1,990.56

Core capital to RWAs 9.74% 8.89% 8.78% 9.63%

Supplementary capital to RWAs 1.55% 1.62% 1.75% 1.73%

Risk Weighted assets 106,725.90 109,723.80 112,307.00 115,119.51

a) Credit Risk 96,745.40 98,633.20 102,148.80 105,531.00

1. On Balance Sheet 77,240.20 80,392.80 84,983.70 89,037.40

2. Off Balance Sheet 19,505.20 18,240.40 17,165.10 16,493.60

b) Operation Risk 7,954.50 7,954.50 7,954.50 7,954.50

c) Market Risk 2,026.00 3,136.10 2,203.70 1,633.90Capital Adequacy Ratio 11.29% 10.51% 10.53% 11.36%

Minimum Capital Requirement 10% 10% 10% 10%

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Market Disclosure under Pillar-III of BASEL-II

A) Scope of ApplicationQualitative Disclosure

B) Capital StructureQualitative Disclosures

(a) The name of the top corporate entity in the group to which this guidelines applies

(b) An outline of difference in the basis of consolidation for accounting and regulatory purposes, with a brief description of the entities within the group (i) that are fully consolidated;(ii) that are given a deduction treatment; and (iii) that are neither consolidated nor deducted (e.g. where the investment is risk-weighted).

c) Any restrictions, or other major impediment, on transfer of funds or regulatory capital within the group.

Quantitative Disclosures

d) The aggregate amount of capital de�ciencies in all subsidiaries not included in the consolidation that are deducted and name(s) of such subsidiaries.

a)Summary information on the terms and conditions of the main features of all capital instruments, especially in the case of capital instruments eligible for inclusion in Tier 1 or Tier 2.


b) The amount of tier 1 Capital, with break up

Particulars

Tier –I (Core Capital)

i) Fully paid up capital

ii) Statutory Reserve

iii) Non-Repayable share premium account

iv) General Reserve

v) Retained Earnings

vi) Minority interest in subsidiaries

Social Islami Bank Limited

The quantitative disclosures are made on the basis of both solo & consolidated basis. SIBL has two subsidiaries and an offshore banking unit; i) SIBL Securities Ltd & ii) SIBL Investment Ltd. Both solo & consolidated �nancial statements have been prepared under applicable �nancial reporting standard & related instructions/ circulars issued by Bangladesh Bank from time to time. The assets, liabilities, revenues & expenses of the Subsidiaries are combined with the parent company (SIBL) on consolidated basis. So assets of the subsidiaries & offshore banking unit are risk weighted and equities of the subsidiaries are crossed out with the investment of SIBL while consolidating.

Not applicable

Not Applicable

As per Bangladesh Bank BASEL-II guidelines; Tier-I capital of the Bank consist of (i) Paid up capital (ii) Non-repayable Share Premium Account (iii) Statutory Reserve (iv) General Reserve (v) Retained Earnings and (vi) Minority interest in subsidiaries.

Tier-II capital consists of (i)General provisions againstunclassi_ed Investments, Off Balance Sheet Exposures &Off shore Banking unit (ii) 50% of Asset Revaluation Reserve (iii) 10% of revaluation reserve for equity instruments (iv) Dividend equalization fund (v) non-convertible portion of sub-ordinate bond. (vi) Long term subordinated bond.Tier-III capital consists of (i) Short term subordinated bond

As on December 31, 2014 (in million taka)

Solo Consolidated

7031.41 7031.41

2784.49 2784.49

- -

- 27.90

1271.79 1298.60

- -

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C) Capital AdequacyQualitative Disclosures

vii) Non -cumulative irredeemable preference shares

viii) Dividend equalization account

ix) Other(if any item approved by Bangladesh Bank)

Sub-Total (Core capital) A(i-ix)

c)Tier II and Tier III capital

i Tier 2 capital

ii Tier-3 capital (Eligible for market risk only)

Sub Total (Supplementary Capital) B (i+ii)

d) Other deductions from capital

e) Total Eligible Capital (A+B)

- -

- -

- -

11087.70 11117.30

1990.56 2007.72

- -

1990.56 2007.72

- -

13078.26 13125.03

(a) A summary discussion of the bank’s approach to assess the adequacy of its capital to support current and future activities.

SIBL has adopted standardized approach for computing capital charge for credit risk & market risk and basic indicator approach for operational risk. Assessment for capital adequacy is carried out in conjunction with the guidelines and regulations by Bangladesh Bank from time to time. Assessing regulatory capital in relation to overall risk exposures of a bank is an integrated and comprehensive process. SIBL, through its SRP team, is taking active measures to identify, quantify, manage and monitor all risks to which the Bank is exposed to. Assessment of Regulatory Capital will be in alignment with the �ndings of these exercises.

Quantitative DisclosuresParticulars As on December 31, 2014 (in million taka) Solo Consolidated

b) Capital requirements for Investment (Credit) Risk 10553.10 10535.54

c) Capital requirements for Market Risk 163.39 163.39

d) Capital requirements for Operational Risk 759.45 800.06

Total capital requirement 11511.95 11499.04

e) Capital Adequacy Ratio: 11.36% 11.41%

Total CAR

Tier-I CAR 9.63% 9.67%

Tier-II CAR 1.73% 1.75%

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D) Investment RiskQualitative Disclosures a) The General Qualitative disclosures requirement with respect to credit Risk, including:

As per Bangladesh Bank guidelines, any investment if not paid within the �xed expiry date will be treated as Past due/ Overdue.

Bangladesh Bank issued circulars from time to time for strengthening Investment discipline. All Investments are categorized into four for the purpose of classi�cation namely (i) Continuous Investment (ii) Demand Investment (iii) Fixed Term Investment and (iv) Short-term Agriculture & Micro Investment.

Classi�cation rules for the above 4 categorized Investments are as under:

Continuous and Demand Investments are classi�ed as:

‘Sub-Standard’- if it is past due / overdue for 3 months or beyond but less than 6 months.

‘Doubtful’- if it is past due / overdue for 6 months or beyond but less than 9 months.

‘Bad/Loss’- if it is past due / overdue for 9 months or beyond from the date of expiry or claim by the bank or from the date of creation of forced investment.

Fixed Term Investments are classi�ed as:(a) In case of any Installment(s) or part of a Fixed Term Investment amounting up-to Taka 10 lac is not repaid within the due date, the amount of unpaid installment(s) will be termed as past due / overdue investment In such a case following classi�cation rules will be applied:

‘Sub-Standard’- if the amount of past due/overdue installment(s) is equal or more than the amount of installment(s) due within 6 months; the entire Investment amount will be classi�ed as ‘Sub-Standard’.

‘Doubtful’- if the amount of past due/overdue installment(s) is equal or more than the amount of installment(s) due within 9 months, the entire Investment amount will be classi�ed as ‘Doubtful’.

‘Bad/Loss’- if the amount of past due/overdue installment(s) is equal or more than the amount of installment(s) due within 12 months, the entire Investment amount will be classi�ed as ‘Bad/loss’.

(b) In case of any Installment(s) or part of a Fixed Term Investment amounting more than Taka 10 lac is not repaid within the due date, the amount of unpaid installment(s) will be termed as past due / overdue investment In such a case following classi�cation rules will be applied:

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‘Sub-Standard’- if the amount of past due/overdue installment(s) is equal or more than the amount of installment(s) due within 3 months; the entire Investment amount will be classi�ed as ‘Sub-Standard’.

‘Doubtful’- if the amount of past due/overdue installment(s) is equal or more than the amount of installment(s) due within 6 months; the entire Investment amount will be classi�ed as ‘Doubtful’.

‘Bad/Loss’- if the amount of past due/overdue installment(s) is equal or more than the amount of installment(s) due within 9 months, the entire Investment amount will be classi�ed as ‘Bad/Loss’.

Short-term Agricultural and Micro-Investment are classi�ed as under:

‘Sub-Standard’-If the investment not repaid within the due date as stipulated in the agreement and if such irregular continues, the investment will be classi�ed as ‘Sub-Standard’ after a period of 12 month, as ‘Doubtful’ after the period of 36 months and as “Bad/loss’ after a period of 60 months from due date.

Continuous Investment, Demand Investment or Term Investment which will remain overdue for a period of 2 month or more will be put into ‘Special Mention Account’.

The rates of provisions are as under:

a) General Provisions-will be maintained:

i) @ 0.25% against all unclassi�ed investments of SME (Small and Medium Enterprise) as de�ned by Bangladesh Bank, @ 1.00% against all unclassi�ed investments except Consumer Financing, Investment to Brokerage House-Merchant Banks-Stock Dealer.

ii) @ 1% on the Off Balance Sheet exposure.

iii) @5% on unclassi�ed investment amount of consumer �nancing, @ 2% on unclassi�ed investment amount of House building �nance, Investment to professionals under consumer �nancing for setting up business, Investment to Brokerage House-Merchant Banks-Stock Dealer.

iv) @ 5% on the outstanding amount of ‘Special Mention Account’.

b) Speci�c Provisions-will be maintained:

i) Sub-standard: @ 20%

ii) Doubtful: @ 50%

ii) Bad /Loss: @ 100%

c) Provision for Short-term Agricultural and Micro Investment:

i) All Investment except bad/loss: 5%

ii) Bad/Loss: @ 100%

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ii) Description of approaches followed for speci�c and general allowances and statistical method;

Social Islami Bank Limited has a well de�ned Investment Risk Management Manual duly approved its Board of Directors which is reviewed annually. Investment risk is one of the major risks faced by the bank and such investment risk management of the bank has been designed to address all risks associated with investments.

The Bank has segregated duties of the Of�cers / Executives involved in investment related activities. A separate Corporate Division has been formed at Head Of�ce, which is entrusted with the duties of maintaining effective relationship with the customer, marketing of Investment products, exploring new business opportunities etc. Moreover, investment approval, administration, monitoring and recovery functions have been segregated. For this purpose, three separate units have been formed within the Investment Risk Management Division. These are (a) Investment Risk Management Unit, (b) Investment Administration Unit and (c) Investment Monitoring Unit. Investment Risk Management Unit is entrusted with the duties of maintaining asset quality, assessing risk in lending to a particular customer, sanctioning credit, formulating policy / strategy for lending operation etc.

A thorough assessment is done before sanctioning of investment facility at Investment Risk Management Unit. The risk assessment includes borrower risk analysis, �nancial analysis, industry analysis, historical performance of the customer, security of the proposed Investment facility etc. The assessment process starts at Corporate Division by the Relationship Manager/Of�cer and ends at Investment Risk Management Unit. Proposal beyond their delegation are approved / declined by the Executive Committee and / or the Management.

In determining single borrower / large investment limit, the Bangladesh Bank instructions are strictly followed. Internal audit is conducted on periodical interval to ensure compliance of Bank’s and regulatory policies. Investments are classi�ed as per Bangladesh Bank’s guidelines.

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b) Total gross Investment/ Credit Risk exposures broken down by major types of Investment exposures.

c) Geographical Distribution of exposures, broken down in signi�cant areas by major types of credit exposure.

d) Industry or counterparty type distribution of exposures, broken down by major types of Investment/credit exposure.


In million Tk.

Mode of Investment As on 31.12.2014Mushataka 555.78Murabaha 4325.88Mudaraba 4205.36Bai-Muazzal 63555.62Hire-Purchase Sirkatul Milk 17143.94Installment Investment Scheme 0.12Quard 7216.02Bai-Salam 60.33Staff Investment 1248.94Ijarah 118.07Visa Card 181.07Purchase & Negotiation 9288.82

Total 107,899.95

In million Tk.

Name of the Division As on 31.12.2014Dhaka 77635.27Chittagong 21487.17Sylhet 367.95Rajshahi 3987.10Khulna 3341.09Rangpur 834.83Barishal 246.54

Total 107,899.95

In million Tk

Sectors As on 31.12.2014Commercial lending 23018.21

Export Financing 771.53

House Building Investment 3765.38

Consumer Investment Scheme 3206.92

Small & Medium Enterprise 19401.95

Micro Investment 20.96

Other Investment 9494.85

Off-shore Banking Unit 4205.36

Allied Concern of Director of SIBL 183.69

Executive & Staff of SIBL 1423.80

Agricultural Industries 1538.35

Textile Industries 15047.89

Food & Allied Industries 1936.33

Pharmaceutical Industries 533.02

Leather, Commercial, Cosmetics etc. 761.27

Construction Industries 3018.31

Cement and Ceramic Industries 1166.46

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e) Residual contractual maturity break down of the whole portfolio, broken down by major types of investment/credit exposure.

f) By major industry or counterparty type

g) Gross Non Performing Assets (NPAs)

Non Performing assets to outstanding investment

Movement of non performing assets

Movement of Speci�c provisions for Non performing

assets

Service Industries 1675.85Transport and Communication Industries 1668.07Other Industries 15061.75Total 107,899.95

In million Tk.

Particulars As on 31.12.14

Repayable on demand 16424.99

Not more than 3 months 21188.18

Over 3 month but not more than 1 year 48101.42

Over 1 year but not more than 5 year 20769.27

Over 5 years 1416.09

Total 107,899.95

Amount of impaired investments and if available, past due investments

In million Tk.


Past due --

Special Mention Account 35.46

Sub-standard 267.76

Doubtful 1679.83

Bad/Loss 2287.88

Total 4270.93

Charges for speci�c allowances and charge-offs during the period

In million Tk.


Provision for unclassi�ed investment 364.47

Provision for classi�ed investment 270.37

Off Balance sheet exposure 16.92

Gross Non Performing Assets of the bank is 4927.57 Million

Non Performing assets to outstanding investment is 4.56%

In million Tk.

Opening balance 4593.33

Addition 328.24

Reduction -

Closing Balance 4921.57

In million Tk.

Opening Balance 1692.05

Provision made during the year 352.14

Write-off 465.60

Write back of excess provision -

Closing balance 1578.59

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Qualitative Disclosures


a) The general Qualitative Disclosures requirement with respect to equity risk, including:

Equities: Disclosures for Banking Book Positions

a) Differences between holdings on which capital gains are expected and those taken under other objectives including for relationship and strategic reasons ;and

b) Discussion of important policies covering the valuation and accounting of equity holdings in the banking book, This includes the accounting techniques and valuation methodologies used, including key assumptions and practices affecting valuation as well as signi�cant changes in these practices.

As on December 31, 2014In million taka

Particulars Solo Consolidated

a) Value disclosed in the balance sheet of investments, as well as the fair value of those 576.16 576.16 investments, for quoted securities a comparison to publicly quoted share values where the share price is materially different from fair value.

b) The cumulative realized gains (losses) arising from sales & liquidations in the reporting - - period.

c) Total unrealized gains (losses) 85.64 85.64

d) Total latent revaluation gains (losses) - -

Any amounts of the above included in tier-2 capital - -

e) Capital requirements broken down by appropriate equity groupings, consistent with the bank’s methodology, as well as the aggregate amounts and the type of equity investments subject to any supervisory provisions regarding regulatory capital requirements.

Speci�c Market Risk 57.62 57.62

General Market Risk 57.62 57.62

Social Islami Bank limited has two categories of equity investments namely (i) Quoted Shares- traded in the secondary market of DSE & CSE like common stock, mutual fund, bond etc. and (ii) Unquoted Shares- currently not tradable in the secondary market.

Unquoted shares include shares and securities which are characterized and categorized as (i) Held to maturity (ii) long term investment i.e. the Bank does not have any intention to sell securities immediately or in the near future (iii) Securities acquired under private placement which will be traded in the secondary market only after completion of required legal formalities with the BSEC (Bangladesh Securities & Exchange Commission), DSE, CSE as per prevailing laws etc.

Investment in Shares and Securities are for gaining dividend income or capital gain. Dividend income are recognized in the books of accounts of the bank as and when such dividend is received or right to receive such dividend is established.

Both Quoted shares and unquoted shares are valued at cost and necessary provisions are maintained if the price falls below the cost. At the time of calculation of unrealized gain or loss of quoted shares, suf�cient provisions on shares & securities are made in the books of accounts after netting off the values of the portfolios but however unrealized gains are not accounted for. As per Bangladesh bank guidelines, HTF (Held for Trading) securities are revalued once in a week using marking to market concept and all such securities are revalued once in a year according to the Bangladesh bank guidelines.

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Qualitative Disclosure

Qualitative Disclosure

Pro�t Rate Risk in the Banking Book

Market Risk

a) The general qualitative disclosure requirement including the nature of Pro�t Rate Risk in the Banking Book (PRRBB) and key assumptions, including assumptions regarding Investment prepayments and behavior of non-maturity deposits, and frequency of PRRBB measurement

Quantitative Disclosure

(b) The increase (decline) in earnings or economic value (or relevant measure used by management) for upward and downward rate shocks according to management’s method for measuring IRRBB, broken down by currency (as relevant)

Particulars 1-90 Days Over 3 Month-Up to Over 6 Months - Up to 6 Months 1 Year

RSA 41774.90 15967.30 46679.50

RSL 54547.30 15945.60 26,538.70

Gap -12772.40 21.70 20140.80

Cumulative Gap -12772.40 -12750.70 7390.10

Adjusted Pro�t Rate Change (PRC) 1% 1% 1%

Earnings Impact (Cum. Gap*PRC) -127.72 -127.51 73.90

Accumulated Earnings Impact to Date -127.72 -255.23 -181.33

Figure in Million

a) i) Views of BOD on trading / investment activities

ii) Method used to measure market risk

Pro�t rate risks in the banking book are taken into account as one of the most potential risk. Sources and types of pro�t rate risks in banking book are (i) Gap or mismatch risk (ii) basic risk (iii) Net position risk (iv) embedded option risk etc. Changes in Pro�t rate in the market may adversely affect the �nancial matters of a bank such as Current Earnings, Net Investment Income, Net Worth etc. In the long run, impact on cash �ows of the earning assets is mostly visible which may lead to asset liability mismatch.

The board of Directors of Social Islami bank Limited approves policies related to market risks by setting up limits and reviews of compliance status regularly.

Standardized approach is being used to measure the market risk. The total capital requirement in respect of market risk is the aggregate capital requirement calculated for each of the risk sub-categories. For each risk category minimum capital requirement is measured in terms of two separately calculated capital charges for “speci�c risk” and “general market risk”.

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Qualitative Disclosures

H) Operational Risk

i) Views of BOD on system to reduce operational risk

ii) Performance gap of executive and staffs

iii) Potential external events

iv) Policies and process for mitigating operational risk

iii) Market risk management system

iv) Policies and processes for mitigating market risk

Operational risk implies the risk of loss of harm resulting from inadequate or failure of internal processes, people and systems or from external events. Capability to carry out a large number of transactions effectively and accurately while complying with applicable laws and rules constitutes operational risk management activities of the bank.

The policy for operational risks including internal control & compliance risk is approved by the board taking into account relevant guidelines of Bangladesh Bank. Audit Committee of the Board directly oversees the activities of internal control & Compliance to protect against all operational risk.

SIBL has a policy to provide competitive package and best working environment to attract and retain the most talented people available in the industry. SIBL’s strong brand image plays an important role in employee motivation. As a result, there is no signi�cant performance gap.

No potential external events are expected to expose the Bank to signi�cant operational risk.

The policy for operational risks including internal control & compliance risk is approved by the Board taking into account relevant guidelines of Bangladesh Bank. Policy guidelines on Risk Based Internal Audit

The Treasury Division manages market risk covering liquidity, pro�t rate and foreign exchange risks with oversight from asset-liability Management Committee (ALCO) comprising senior executives of the Bank. ALCO is chaired by the Managing Director. ALCO meets at least once a month.

There are approved limits for Investment deposit ratio, liquid assets to total assets ratio, maturity mismatch, commitments for both on-balance sheet and off-balance sheet items and borrowing from money market and foreign exchange position. The limits are monitored and enforced regularly to protect the market risks. The exchange rate of the Bank is monitored regularly and the prevailing market condition, exchange rate, foreign exchange position and transactions are reviewed to mitigate foreign exchange risks.

�gure in million Taka

Quantitative DisclosureAs on December 31, 2014

b) The capital requirements for Solo Consolidated

Pro�t rate risk - -

Equity position risk 115.23 115.23

Foreign exchange risk 48.18 48.18

Commodity risk - -

Total Capital Requirement 163.39 163.39

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v) Approach to calculating capital charges for operational risk


(RBIA) system is in operation. As per RBIA branches are rated according to their risk grading/ scoring audit procedure and required frequent audit to the Branches are operated by the Audit Division. In addition, there is a Vigilance Cell established in the Bank to reinforce operational risk management of the Bank and to minimize the same. Bank’s anti-money laundering activities are headed by (Chief Anti Money Laundering Compliance Of�cer) CAMLCO and their activities are devoted to protect against all money laundering and terrorist �nance related activities. Apart from that, there is adequate check & balance at every stage of operation, authorities are properly segregated and there is at least dual control on every transaction to protect against operational risk.

Basic indicator Approach is used for calculating capital charge for operational risk as of the reporting date.

As per risk based capital adequacy guidelines, capital charge for operational risk is equivalent to 15% of average annual gross income of three previous years where negative �gures are excluded.

As per risk based capital adequacy guidelines Social Islami bank Limited follows the Basic Indicator Approach for computing capital charge for operational risk.

Bangladesh Bank through its DOS Circular No. 01 dated 21.04.2010 and subsequent DOS Circular No.01 dated 23.02.2011 introduced “Guidelines on Stress Testing” wherein Stress testing has been stated as one of the sophisticated technique used to determine the reaction of different �nancial institutions under a set of exceptional, but plausible assumptions through a series of battery of tests. At institutional level, stress testing techniques provide a way to quantify the impact of changes in a number of risk factors on the assets and liabilities portfolio of the institution.

Bangladesh Bank also mentions in the said circular that at the system level, stress testing are primarily designed to quantify the impact of possible changes in economic environment on the �nancial system. These tests help the regulators identify structural vulnerabilities and the overall risk exposure that could cause disruption of �nancial markets.

Bangladesh Bank Circular No. 01 dated 23.02.2011 introduced “Guidelines on Stress Testing” wherein advised that “ Banks shall carry out stress testing in line with the revised guideline on quarterly basis i.e. on March 31, June 30 September 30 and December 31 and submitted the same to Bangladesh Bank within 30 days of each quarter end”.

SIBL has already prepared a stress testing report in line with the Bangladesh Bank’s guidelines which initially focus on “Simple Sensitivity and Scenario Analysis” of the following �ve factors;

1. Pro�t Rate

2. Forced sale value of collateral

3. Non-performing Investments(NPI)

4. Equity/ Share prices

5. Foreign Exchange rate

The result of stress testing based on the �nancial performance of the bank as on December 31, 2014 has also been completed which shows that the bank has adequate capital to absorb minor and moderate individual shocks. However, some additional capital may be required under major level combined shocks.

Stress testing

As on 31.12.2014�gure in million Taka

Capital Requirement Solo Consolidated

Operational Risk 759.45 800.06

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SIBL Events 2014Some functions are imperative, some occasions are milestones---these lead to occurrence of events. SIBL has always been sincere to the desire and sentiment of its clients as well as the nation as a whole

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163

The 19th Annual General Meeting of

Social Islami Bank Limited (SIBL) was held

on 31 May, 2014 at “Sunrise Community

Center” Sylhet. In the AGM shareholders

approved 12% cash dividend for the

�nancial year 2013.

19th Annual General Meeting

SIB

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SIB

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Celebration of 19th Anniversary of SIBL

Social Islami Bank Limited (SIBL) celebrated its 19th Founding Anniversary on November 22, 2014, by addressing social needs and contributing to the society as a bank for the society.

Mr. Shitangshu Kumar Sur Chowdhury, Hon’ble Deputy Governor, Bangladesh Bank, was present as the chief guest and handed over an Incubator to Brig. Gen. Mosta� zur Rahman, Director, Dhaka Medical College Hospital. Hon’ble Chairman of the bank, Major Dr. Md. Rezaul Haque (Retd.), and Managing Director, Mr. Md. Sha� qur Rahman, were also present in the program.

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Mr. Shitangshu Kumar Sur Chowdhury, Hon’ble Deputy Governor, Bangladesh Bank, Major Dr. Md. Rezaul Haque (Retd.), Hon’ble Chairman, and Mr. Md. Sha� qur Rahman, Managing Director of SIBL, distributed toys and chocolates at the children ward of DMCH on the occasion of 19th Anniversary Celebration. Hon’ble Directors of SIBL were also present in the program.

Mr. Shitangshu Kumar Sur Chowdhury, Hon’ble Deputy Governor, Bangladesh Bank, delivered speech at DMCH as chief guest. Mr. Ahmed Fayed Al Gebali, Director, IFSD of Islamic Development Bank, Mr. Diab Karrar Ahmed, Manager, Awqaf Development Division of Islamic Development Bank, and Major Dr. Md. Rezaul Haque (Retd.), Chairman of SIBL, were present as Special Guests at the celebration.

SIBL arranged a formal reception at its Training Institute in honor of the Delegation of Islamic Development Bank, Mr. Ahmed Fayed Al Gebali and Mr. Diab Karrar Ahmed, followed by audio and video presentations. Hon’ble Chairman of the bank, Major Dr. Md. Rezaul Haque (Retd.), and Managing Director, Mr. Md. Sha� qur Rahman, received the IDB guests with crests at the Head Of� ce of SIBL. Hon’ble Board of Directors and other Senior Management of SIBL were also present.

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As a part of its 19th Founding Anniversary Celebration, SIBL arranged a seminar on “Poverty Alleviation through Islamic Micro Finance and Mobilization of Islamic Social Fund (Waqaf)” at the Bangabandhu International Conference Center on 22nd November 2014. Mr. Md. Abul Quasem, Deputy Governor of Bangladesh Bank, attended the program as chief guest, while Mr. Ahmed Fayed Al Gebali, Director, IFSD, of Islamic Development Bank, and Mr. Diab Karrar Ahmed, Manager, Awqaf Development Division of Islamic Development Bank, graced the seminar as special guests. Hon’ble Chairman of the bank, Major Dr. Md. Rezaul Haque (Retd.), and Managing Director, Mr. Md. Sha� qur Rahman, were also present in the program

Celebration of 19th Anniversary of SIBL

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Interaction, Meetings, Get Together Reception at Corporate Of� ce of Bank, and Bilateral Exchange of Views with Management and Directors of SIBL were held on the occasion of 19th Anniversery Celebration.

Hamdard authority showing the model of its University to IDB Delegation at site of� ce.

IDB Delegation is talking to Hamdard University students in their classroom.

IDB Delegates visit a � sheries project namely “Proshanto Matsho Prokolpo Lease Committee” at Elliotgonj, Comilla, � nanced by SIBL Comilla Branch.The delegates were accompanied by the Honorable Chairman, Directors, Managing Director, and other Senior Executives of SIBL.

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Corporate Social Responsibility (CSR)

SIBL donates for Lakho Kanthe Sonar Bangla Tahobil

Donation to BDR Pilkhana martyred army of� cer

Donation for � ood affected people

Social Islami Bank limited (SIBL) contributed Tk. 1 Crore for Lakho Kanthe Sonar Bangla Tahbil. Vice Chairman of SIBL, Mr. Md. Sayedur Rahman, handed over the cheque of contribution to the Hon’ble Prime Minister at a function. Hon’ble Finance Minister, Mr. Abul Maal Abdul Muhith M.P., and Hon’ble Adviser to the Prime Minister, Dr. Tow� c-e-Elahi, among others, were present in the program.

SIBL donated to a BDR Pilkhana martyred army of� cer’s family as a part of its corporate social responsibility. Vice Chairman of SIBL, Mr. Md. Sayedur Rahman, handed over a cheque worth Taka 4.8 lac to the Hon’ble Prime Minister, Sheikh Hasina, as yearly contribution to victims of Pilkhana incidence.

SIBL donated Tk. 5 million to Prime Minister’s Relief Fund to help the � ood affected people of the country. Mr. Md. Sayedur Rahman, Vice Chairman of SIBL handed over the cheque to the Hon’ble Prime Minister, Sheikh Hasina at Gonobhaban.

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Donation for cold-affected people Donation to a Medical student

Donation of Folding Beds to DMCH Donation for Chechua Diabetes Sub Centre

Donation to Khulna District Sports Association

Social Islami Bank Limited donated Blankets to the Prime Minister’s Relief and Welfare Fund to help the cold-affected people of the country as a part of CSR activities of the Bank. Mr. Md. Sayedur Rahman, Vice Chairman, and Mr. Abdul Awal Patwary, Director of SIBL, handed over the blankets to the Hon’ble Prime Minister Sheikh Hasina at Gonobhaban.

SIBL donated Tk. 2 lac for Heart Valve Replacement Surgery of Ms. E�run Nesar, 1st year MBBS student of Asian Medical College Hospital. Deputy Managing Director of SIBL, Mr. A. M. M. Farhad, handed over the cheque to the Principal of Asian Medical College, Mr. Chowdhury Md. Haider Ali. Adviser of Asian Medical College Hospital, Prof. A. K. Moyeen Uddin Ahmed, E�run Nesar and her father Mr. Md. Jahangir Alam and of�cials of SIBL were also present.

SIBL handed over Folding Beds for the treatment of burn-injury patients of the National Institute of Burn and Plastic Surgery of Dhaka Medical College Hospital. Hon’ble Chairman of SIBL, Major Dr. Md. Rezaul Haque (Retd.), handed over the cheque of donation to Dr. Samanta Lal Sen, Adviser of the National Institute of Burn and Plastic Surgery.

Hon’ble Chairman of the bank, Major Dr. Md. Rezaul Haque (Retd.) handing over a cheque of donation to the representative of Kailakuri Health Care Project for construction of Chechua Diabetes Sub Centre at Mymensingh.

SIBL donated to Khulna District Sports Association to organize Khulna Premier Division Cricket League and First Division Cricket League. Hon’ble Chairman of the Board of Directors of SIBL, Major Dr. Md. Rezaul Haque (Retd.), handed over the cheque of donation to Mr. Kazi Shamim Ahsan, General Secretary, Khulna District Sports Association. Hon’ble Director of the Bank, Mr. Abdul Jabbar Mollah, Hon’ble Director and Chairman of Board Audit Committee, Mr. Md. Abdur Rahman, Managing Director, Md. Sha�qur Rahman, and Deputy Managing Director, Mr. A M M Farhad, were also present in the program.

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Beside ailing Poet Muzahidi Free Cleft Lip and Palate Surgery Camp

Social Islami Bank Limited donated to Khulna Shishu Hospital

Beside ailing Great Language Veteran Abdul Matin

Chairman of SIBL, Major Dr. Md Rezaul Haque (Retd.), visited ailing Poet, Litterateur and Journalist, Mr. Siham Al Muzahidi at Bangabandhu Sheikh Mujib Medical University Hospital. He inquired about his health and stayed with him for some time. Hon’ble Chairman presented him with a small cash gift to support his treatment. During the visit Deputy Managing Director of the Bank, Mr. A. M. M. Farhad, Senior Executive Vice President, Mr. Tarik Morshed, and First Assistant Vice President, Md. Nazrul Alam Ali Reza, were present.

As a part of its Corporate Social Responsibility, SIBL organized a free Cleft Lip and Palate Surgery Camp at Gazipur Medical College Hospital with the cooperation of Specialized Doctors of National Institute of Burn and Plastic Surgery Unit, Dhaka Medical College Hospital. Under this Camp Cleft Lip and Palate Surgery of 20 distressed children were done successfully with the �nancial Support of SIBL.

SIBL under its CSR activities provided donation for construction of two cabins of Khulna Shishu Hospital. Hon’ble Director of the Bank, Mr. Abdul Jabbar Mollah, handed over the Cheque of donation to the Chairman of Khulna Shishu Hospital, Al-haj Mizanur Rahman M.P. Deputy Managing Director of the bank, Mr. A M M Farhad, Manager of Khulna Branch, M Saidur Rahman, Directors of Khulna Shishu Hospital, local dignitaries and other of�cials of the bank were present in the program.

Chairman of SIBL, Major Dr. Md Rezaul Haque (Retd.), visited ailing Great Language Veteran, Abdul Matin at Bangabandhu Sheikh Mujib Medical University Hospital. He inquired about his health and stayed with him for some time. Hon’ble Chairman presented him with a small cash gift received by his wife as seen in the picture to support his treatment. During the visit, Deputy Managing Director of the Bank, A. M. M. Farhad, Senior Executive Vice President, Mr. Tarik Morshed, were present.

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Agreement Signing Ceremony

Agreement with Bangladesh Commerce Bank

Agreement with Amazing Holidays

Agreement with CPUT, Ministry of Planning

Social Islami Bank Limited (SIBL) and Bangladesh Commerce Bank Limited (BCBL) signed an agreement for foreign remittance payment. Managing Director of Social Islami Bank, Mr. Md. Sha�qur Rahman, and Managing Director of Bangladesh Commerce Bank Limited, Mr. Abu Sadek Md. Sohel, signed the agreement on behalf of their respective organizations.

Social Islami Bank Limited (SIBL) and Amazing Holidays signed a corporate agreement for special discount facility. Managing Director of Social Islami Bank, Mr. Md. Sha�qur Rahman, and CEO of Amazing Holidays, Mr. Mamun Ashraphi, exchanged the documents after signing the agreement. Deputy Managing Director of SIBL, Mr. A. M. M. Farhad, and other of�cials of both the organizations were also present.

Social Islami Bank Limited (SIBL) and CPTU, Planning Commission, Government of Bangladesh, signed an agreement for e-GP payment service. Director General of Planning Commission, Mr. Amulya Kumar Debnath, and Deputy Managing Director of SIBL, Mr. A. M. M. Farhad, signed the agreement on behalf of their respective organizations.

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Agreement with Semicon

Agreement with Shandhani Life Insurance Company Ltd.

Agreement with IIDFC

Agreement with Alpha Rating

Agreement with United Hospital Ltd.

Social Islami Bank Limited (SIBL) and Semicon Private Limited signed a corporate agreement on Mobile Financial Services. Managing Director of Social Islami Bank, Mr. Md. Sha�qur Rahman, and Chairman of Semicon Private Limited, Mr. Rabiul Alam, exchanged the documents after signing the agreement. Deputy Managing Director of SIBL, Mr. A.M.M. Farhad, and other of�cials of both the organizations were also present.

Social Islami Bank Limited (SIBL) and United Hospital Ltd. signed a Corporate Medical Service Agreement on Mobile Financial Services. Deputy Managing Director of SIBL, Mr. A. M. M. Farhad, and Director of Clinical Operations of United Hospital, Dr. Dabir Uddin Ahmed, signed the agreement on behalf of their respective organizations. Major Dr. Md Rezaul Haque, Hon’ble Chairman of Social Islami Bank Ltd. was present in the program.

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Seminar and Workshop

Strategic Business Planning Session Business Review Meeting

SIBL arranged a Strategic Business Planning Session to evaluate business position and formulate future business strategy of some chosen branches of the Bank at its Corporate Head Of�ce. Hon’ble Chairman of the Bank, Major Dr. Md. Rezaul Haque (Retd.), was present in the session as Chief Guest while Managing Director of the Bank, Mr. Md. Sha�qur Rahman, presided over the program. Deputy Managing Directors, Departmental Heads and concerned Managers of the Bank were also present in the program.

SIBL arranged a Business Review Meeting to evaluate the business position of the bank at its Corporate Of�ce. Managers of different branches of Dhaka and suburb areas and Departmental Heads of the Bank participated in the meeting. Hon’ble Chairman of the Bank, Major Dr. Md. Rezaul Haque (Retd.), was present in the program as Chief Guest while Managing Director of the Bank, Mr. Md. Sha�qur Rahman, presided over the meeting. Deputy Managing Directors, Departmental Heads and concerned Managers of the Bank were present in the program.

BAMLCO Conference and Workshop

SIBL organized Branch Anti-Money Laundering Compliance Of�cers’ (BAMLCO) Conference and Workshop at Mozaffar Ahmed Chowdhury Auditorium, Social Science Faculty of the University of Dhaka, recently. Deputy Governor of Bangladesh Bank, Mr. Abu Hena Mohd. Razee Hassan, was present as Chief Guest and inaugurated the conference. Chairman of the Board of Directors of the bank, Major Dr. Md. Rezaul Haque (Retd.), Director and Chairman of Board Audit Committee of the bank, Mr. Md. Abdur Rahman, and Dean of Social Science Faculty of Dhaka University, Professor Farid Uddin Ahmed, were present as Special Guests in the program. The program was presided over by the Managing Director of the bank, Mr. Md. Sha�qur Rahman.

SIBL rewarded its MoneyGram customers

SIBL made a promotional campaign of moneygram remittance during the month of Ramadan and selected one lucky winner each day from moneygram remittance received throughout SIBL branches. The Bank also organized a prize distribution ceremony for the moneygram remittance receivers at its Corporate Of�ce. The program was attended by the Managing Director of the Bank, Mr. Md. Sha�qur Rahman, and Regional Manager of MoneyGram, Mr. Vishal Krishnann. Deputy Managing Directors of SIBL Mr. Ihsanul Aziz, Mr. A. M. M. Farhad and Mr. Md. Yunus Ali, Manager Operation of MoneyGram, Mr. Gautam Naithani and other executives of SIBL were also present in the program.

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School Banking Conference at Chittagong

Seminar on Shariah Banking: Bangladesh Perspective

Social Islami Bank Limited participated at the School Banking Conference at Chittagong organized by Bangladesh Bank. Deputy Managing Director of Social Islami Bank Limited, Mr. A.M.M. Farhad, handed over a bouquet to the Honorable Governor of Bangladesh Bank, Dr. Atiur Rahman, while the latter visited the stall of the Bank at the school banking conference.

Foundation Training School Banking Conference at Khulna

SIBL Centre for Learning, Development & Research arranged Foundation Course in Banking for Probationary Of�cers, Junior and Assistant Of�cers of the Bank during the whole year. Managing Director of the Bank Mr. Md. Sha�qur Rahman delivered speech to encourage the young of�cers of the Bank. Deputy Managing Directors of the Bank, Mr. Ihsanul Aziz and Mr. A. M. M. Farhad, are also seen in the pictures.

Social Islami Bank Limited participated at the School Banking Conference at Khulna organized by Bangladesh Bank. Deputy Managing Director of Social Islami Bank Limited, Mr. A.M.M. Farhad, handed over a bouquet to the Honorable Governor of Bangladesh Bank, Dr. Atiur Rahman, while the latter visited the stall of the Bank at the school banking conference.

Chairman of Social Islami Bank Limited, Major (Retd.) Dr. Md. Rezaul Hauque, handed over a Crest to the Hon’ble Governor of Bangladesh Bank Dr. Atiur Rahman at the seminar titled ‘Shariah Banking: Bangladesh Perspective’ organized by the Islami Banks Consultative Forum (IBCF). Among others, Chairman of Islamic Development Bank, Dr. Ahmad Mohammad Ali, and Former President of FBCCI, A.K. Azad, were present in the program.

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SIBL Representative met IDB Group Chairman

SIBL delegates attended 10th World Islamic Economic Forum (WIEF)

The Chairman of the Board of Directors of Social Islami Bank Limited (SIBL), Major, Dr. Md. Rezaul Haque (Retd.), and Managing Director, Mr. Md. Sha�qur Rahman, met IDB Group Chairman, H.E. Dr. Ahmad Mohamed Ali, at IDB Headquarters in Jeddah. They discussed, among others, issues relating to development of Islamic Banking in the world and ways to reducing poverty from the society through use of Islamic micro�nance. They had also dealt in details on how to develop waqf properties in Bangladesh towards contributing in societal development more effectively.

Hon’ble Chairman of Social Islami Bank Limited (SIBL), Major Dr. Md. Rezaul Haque (Retd.), participated in the 10th World Islamic Economic Forum (WIEF) held in Dubai, United Arab Emirates. Hon’ble Vice Chairman of the bank, Mr. Md. Sayedur Rahman, Directors of the bank, Mr. Md. Anisul Hoque, Alhaj Nasiruddin and Mr. Md. Abdul Jabbar Mollah, and Managing Director of the bank, Mr. Md. Sha�qur Rahman, were present in the conference.

SIBL Delegates abroad

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Competence Recognised

Social Islami Bank Limited has been awarded “Certi�cate of Merit” in the 14th ICAB National Award for Best Presented Annual Reports-2013 by the Institute of Chartered Accountants of Bangladesh (ICAB). Managing Director of Social Islami Bank Limited, Mr. Md. Sha�qur Rahman, received the “Certi�cate of Merit” award from Hon’ble Finance Minister Mr. Abul Mal Abdul Muhith M.P.

Social Islami Bank Limited has been awarded the “Certi�cate of Merit” of ICMAB Best Corporate Award-2013 organized by the Institute of Cost and Management Accountants of Bangladesh (ICMAB). Deputy Managing Director of SIBL, Mr. Ihsanul Aziz, received the “Certi�cate of Merit” award from Hon’ble Finance Minister, Mr. Abul Maal Abdul Muhith, M.P.

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SIBL New Branches Opened in the year 2014

Panchdona Branch30 September 2014

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Gausia Branch12 November 2014

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Saidpur Branch27 November 2014

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SIBL New Branches Opened in the year 2014

Laxmipur Branch13 December 2014

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Maona Branch24 December 2014

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Kankirhat Branch27 December 2014

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Corporate FinanceC

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Project Name:A.R. Auto Rice Mills (Pvt) Ltd.

Financed by:Principal BranchSocial Islami Bank Ltd.

Project Name:Meghna Seed CrushingMills Ltd.

Financed by:Foreign Exchange BranchSocial Islami Bank Ltd.

Project Name:Quest Accessories (BD) Ltd.

Financed by:New Eskaton BranchSocial Islami Bank Ltd.

Project Name:Baraka Patenga Power Ltd.

Financed by:Sylhet BranchSocial Islami Bank Ltd.

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SME FinanceS

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Piniti International

Financed by:Mouchak BranchSocial Islami Bank Ltd.

Project Name:Redwan Trade International

Financed by:Agrabad BranchSocial Islami Bank Ltd.

Project Name:M/S Anwar Trading

Financed by:Hathazari BranchSocial Islami Bank Ltd.

Project Name:M/S Shahidul Vander Steel Mill

Financed by:Bogra BranchSocial Islami Bank Ltd.

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Agri FinanceA

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E Project Name:Friends In Village Development Bangladesh

Financed by:Sylhet BranchSocial Islami Bank Ltd.

Project Name:M/S Faisal Enterprise.

Financed by:Cox’s Bazar BranchSocial Islami Bank Ltd.

Project Name:M/S Miazee Agro Industries Ltd.

Financed by:Comilla BranchSocial Islami Bank Ltd.

Project Name:Pankowri Fisheries Ltd.

Financed by:Elliotgonj BranchSocial Islami Bank Ltd.

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Financial StatementsSocial Islami Bank Limited (SIBL) and Its subsidiaries for the year ended 31 December 2014

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We have audited the accompanying consolidated �nancial statements of Social Islami Bank Limited and its subsidiaries (the “Group”) as well as the separate �nancial statements of Social Islami Bank Limited (the “Bank”), which comprise the consolidated balance sheet and the separate balance sheet as at 31 December, 2014 and the consolidated and separate pro�t and loss accounts, consolidated and separate statements of changes in equity and consolidated and separate cash �ow statements for the year then ended, and a summary of signi�cant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements and Internal Controls

Management is responsible for the preparation of consolidated �nancial statements of the Group and also separate �nancial statements of the Bank that give a true and fair view in accordance with Bangladesh Financial Reporting Standards as explained in note 2 and for such internal control as management determines is necessary to enable the preparation of consolidated �nancial statements of the Group and also separate �nancial statements of the Bank that are free from material misstatement, whether due to fraud or error. The Bank Companies Act, 1991 and the Bangladesh Bank Regulations require the Management to ensure effective internal audit, internal control and risk management functions of the Bank. The Management is also required to make a self-assessment on the effectiveness of anti-fraud internal controls and report to Bangladesh Bank on instances of fraud and forgeries.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated �nancial statements of the Group and the separate �nancial statements of the Bank based on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated �nancial statements of the Group and separate �nancial statements of the Bank are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated �nancial statements of the Group and separate �nancial statements of the Bank. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated �nancial statements of the Group and separate �nancial statements of the Bank, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation of consolidated �nancial statements of the Group and separate �nancial statements of the Bank that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated �nancial statements of the Group and also separate �nancial statements of the Bank.

We believe that the audit evidence we have obtained is suf�cient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated �nancial statements of the Group and also separate �nancial statements of the Bank give a true and fair view of the consolidated �nancial position of the Group and the separate �nancial position of the Bank as at 31 December, 2014 and of its consolidated and separate �nancial performance and its consolidated and separate cash �ows for the

year then ended in accordance with Bangladesh Financial Reporting Standards as explained in note 2.

Auditors’ Reportto the Shareholders of Social Islami Bank Limited

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Report on Other Legal and Regulatory Requirements

In accordance with the Companies Act 1994, the Securities and Exchange Rules 1987, the Bank Companies Act, 1991 and the rules and regulations issued by Bangladesh Bank, we also report the following:

(a) we have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our audit and made due veri�cation thereof;

(b) to the extent noted during the course of our audit work performed on the basis stated under the Auditor’s Responsibility section in forming the above opinion on the consolidated �nancial statements of the Group and the �nancial statements of the Bank and considering the reports of the Management to Bangladesh Bank on anti-fraud internal controls and instances of fraud and forgeries as stated under the Management’s Responsibility for the Financial Statements and Internal Control:

i) internal audit, internal control and risk management arrangements of the Group and the Bank (as disclosed in note 2 of the �nancial statements) appeared to be materially adequate;

ii) nothing has come to our attention regarding material instances of forgery or irregularity or administrative error and exception or anything detrimental committed by employees of the Bank and its related entities;

(c) �nancial statements of all subsidiaries of the Bank have been audited by other auditors and have been properly re�ected in the consolidated �nancial statements;

(d) in our opinion, proper books of account as required by law have been kept by the Group and the Bank so far as it appeared from our examination of those books;

(e) the consolidated balance sheet and consolidated pro�t and loss account of the Group and the separate balance sheet and separate pro�t and loss account of the Bank dealt with by the report are in agreement with the books of account;

(f) the expenditure incurred was for the purposes of the Bank’s business;

(g) the consolidated �nancial statements of the Group and the separate �nancial statements of the Bank have been drawn up in conformity with prevailing rules, regulations and accounting standards as well as with related guidance issued by Bangladesh Bank;

(h) adequate provisions have been made for advances which are, in our opinion, doubtful of recovery;

(i) the records and statements submitted by the branches have been properly maintained and consolidated in the �nancial statements;

(j) the information and explanation required by us have been received and found satisfactory; and

(k) we have reviewed over 80% of the risk weighted assets of the Bank and we have spent around 3,740 person hours for the audit of the books and accounts of the Bank.

KAZI ZAHIR KHAN & CO.Chartered Accountants

Dhaka, BangladeshDate: 28 February 2015

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Social Islami Bank LimitedConsolidated Balance sheet

As at 31 December 2014

Note(s)2014 2013

Taka Taka

PROPERTY AND ASSETSCash Cash in hand (Including Foreign Currencies) 3(a) 976,302,191 1,267,213,967 Balance with Bangladesh Bank & its Agent Banks 3.1(Including Foreign Currencies) 11,145,075,318 7,627,790,250

12,121,377,509 8,895,004,217 Balance with other Banks and Financial Institutions 4(a)

In Bangladesh 2,577,414,418 1,899,243,196 Outside Bangladesh 332,880,245 1,178,527,956

2,910,294,663 3,077,771,152

Placement with Banks & other Financial Institutions 5 9,474,249,214 9,064,879,564

Investments in Shares & Securities 6(a) Government 5,116,000,000 5,500,000,000 Others 1,227,727,286 1,558,185,070

6,343,727,286 7,058,185,070 Investments 7(a)

General Investment etc. 98,511,135,398 76,348,581,962 Bills Purchased and Discounted 9,288,823,913 9,523,749,964

107,799,959,311 85,872,331,926

Fixed Assets including Premises, Furnitures and Fixtures 8(a) 2,683,691,549 2,662,660,343 Other Assets 9(a) 12,252,008,976 9,770,561,641 Non Banking Assets - -

Total Assets 153,585,308,507 126,401,393,912

LIABILITIES AND CAPITALLiabilities Placement from Banks & other Financial Institutions 10 6,150,000,000 4,700,000,000 Deposits and Other Accounts 11

Mudaraba Savings Deposits 9,818,279,970 6,468,729,754 Mudaraba Term Deposits 75,356,410,289 62,746,867,195 Other Mudaraba Deposits 23,923,887,375 19,288,768,828 Al-Wadeeah Current & Other Deposit Accounts 11.2(a) 12,789,580,088 11,936,321,181 Bills Payable 11.3 2,277,639,901 1,316,909,958 Cash Waqf Fund 99,275,350 84,577,685

124,265,072,973 101,842,174,601

Other Liabilities 12(a) 10,992,324,637 8,770,196,845 Deffered Tax Liabilities/ (Assets) 13 4,924,028 1,577,248

Total Liabilities 141,412,321,638 115,313,948,694 Shareholders’ Equity

Paid-up Capital 14.2 7,031,415,640 7,031,415,640 Statutory Reserve 15 2,784,497,917 2,122,994,344 General reserve 2,790,193 1,864,080 Revaluation reserve on Fixed Assets 16 1,055,679,727 1,082,485,102 Retained Earnings 17(a) 1,298,601,774 848,684,454

Total Shareholders’ Equity of Parent Company, SIBL 12,172,985,252 11,087,443,620 Non controlling Interest 17(b) 1,617 1,597

Total Liabilities & Shareholders’ Equity of the Group 153,585,308,507 126,401,393,912

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Note(s)2014 2013

Taka Taka

CONTINGENT LIABILITIES

Acceptances and Endorsements 18.1 15,302,832,788 14,986,882,397

Irrevocable Letters of Credit (including Back to Back Bills) 18.2 11,017,261,193 9,854,239,886

Letters of Guarantee 18.3 3,936,013,964 3,246,076,013

Bills for Collection 18.4 1,905,746,855 2,383,031,491

Other Contingent Liabilities 18.5 - -

Total 32,161,854,799 30,470,229,787

OTHER COMMITMENTS

Documentary credits and short term trade related transactions - -

Forward assets purchased and forward deposits placed - -

Undrawn note issuance and revolving underwriting facilities - -

Undrawn formal standby facilities, credit lines and other

commitments - -

Total - -

Total Off Balance Sheet Items including

Contingent Liabilities 32,161,854,799 30,470,229,787

Annexed notes (1 to 48) form an integral part of these �nancial statements

Chairman Director Director Managing Director

Signed as per our report of same date

Dhaka, Bangladesh Kazi Zahir Khan & Co.

Date: 28 February 2015 Chartered Accountants

Off-Balance Sheet ItemsAs at 31 December 2014

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Dhaka, Bangladesh Kazi Zahir Khan & Co.Date: 28 February 2015 Chartered Accountants

Social Islami Bank LimitedConsolidated Pro�t And Loss Account

For the year ended 31 December 2014

Note(s)2014 2013

Taka Taka

Investment Income 19(a) 13,984,234,867 13,652,592,262 Less: Pro�t paid on Deposits 20 9,007,200,466 9,706,867,767 Net Investment Income 4,977,034,401 3,945,724,495 Income from Investment in Shares/securities 21(a) 300,045,705 325,466,389 Commission, Exchange and Brokerage 22(a) 1,224,944,942 1,056,116,571 Other Operating Income 23(a) 296,406,605 233,154,130

1,821,397,252 1,614,737,090 Total Operating Income 6,798,431,653 5,560,461,585

Salaries and Allowances 24(a) 1,665,696,112 1,511,743,316 Rent, Taxes, Insurances, Electricity etc. 25(a) 255,524,408 228,445,375 Legal Expenses 26(a) 8,142,318 7,943,388 Postage, Stamps, Telecommunication etc. 27(a) 8,661,250 32,286,323 Stationery, Printings, Advertisements etc. 28(a) 81,490,846 91,543,834 Managing Director’s Salary and Allowances 29 8,900,000 8,605,485 Directors’ Fees & Expenses 30(a) 6,984,357 4,805,075 Shariah Supervisory Committee’s Fees & Expenses 31 342,050 254,362 Auditors` Fees 753,250 534,750 Depreciation & Repair of Bank’s Assets 32(a) 209,582,383 174,744,640 Other Expenses 33(a) 529,193,082 565,286,127 Total Operating Expenses 2,775,270,056 2,626,192,674

Pro�t/(Loss) before Provision 4,023,161,597 2,934,268,911 Provisions for Investments 651,756,813 864,492,279 Other Provisions 34(a) 18,879,283 10,834,102 Total Provision 35(a) 670,636,096 875,326,381 Total Profit/(Loss) before Tax 3,352,525,501 2,058,942,530

Provision for Income Tax 36(a) 1,424,140,084 806,808,184

Net Profit/(Loss) after Tax attributable to equity holders of the group 1,928,385,416 1,252,134,346

Non-controlling Interest 20 27

Net Profit/(Loss) after Tax attributable to equity holders of the parent 1,928,385,396 1,252,134,320

AppropriationStatutory Reserve 661,503,573 404,931,889 Retained Earnings 1,266,881,823 847,202,431

1,928,385,396 1,252,134,320

Earning Per Share (CEPS) 37(a) 2.74 1.78

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Taka Taka

Cash Flow from operating activitiesInvestment Income receipt 38(a) 13,984,234,867 13,652,592,262 Pro�t paid on deposits (7,712,225,604) (6,901,278,644)Dividend receipts 300,045,705 325,466,389 Fees & commission receipt 604,112,217 584,822,183 Cash payments to employees (1,674,596,112) (1,520,348,801)Cash payments to suppliers (90,152,096) (123,830,157)Income tax paid (801,113,468) (1,356,696,826)Receipts from other operating activities 39(a) 917,239,330 704,448,518 Payments for other operating activities 40(a) (827,938,243) (794,669,804)

Operating pro�t before changes in operating assets and liabilities 4,699,606,596 4,570,505,121 Changes in operating assets and liabilities

Statutory deposits - - Net trading securities 714,457,784 (2,394,168,486)Investments to other banks - - Investment to customers (21,927,627,385) (9,847,358,018)Other assets 41(a) (1,680,333,868) (248,053,710)Deposits from other banks 9,374,714,973 (6,383,245,811)Deposits received from customers 11,753,208,538 12,142,992,679 Other liabilities on account of customers - - Trading liabilities - - Other liabilities 42(a) 131,624,502 360,934,923 Sub Total (1,633,955,455) (6,368,898,423)

A. Net Cash �ow from operating activities 3,065,651,140 (1,798,393,302)Cash �ows from investing activities

Proceeds from sale of securities - - Payment for purchases of securities - - Proceeds from sale of �xed assets - - Purchases of property, plant & equipments (203,614,810) (562,918,036)Purchase/Sale of subsidiaries - -

B. Net Cash �ows from investing activities (203,614,810) (562,918,036)Cash �ows from �nancing activities

Receipts from issue of debt instruments 1,450,000,000 - Payments for redemption of debt instruments - - Receipts from issue of right shares/ordinary share - - Dividend paid in cash (843,769,877) (318,744,971)

C. Net Cash �ow from �nancing activities 606,230,123 (318,744,971)

D. Net increase/(decrease) in cash & cash equivalents (A+B+C) 3,468,266,454 (2,680,056,309)

E. Cash and cash equivalents at the beginning of the year 21,037,654,933 23,717,711,242 F. Cash and cash equivalents at the end of the year (D+E) 43(a) 24,505,921,387 21,037,654,933

Annexed notes ( 1 to 48) form an integral part of these �nancial statements



Social Islami Bank LimitedConsolidated Cash Flow Statement


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Taka Taka

PROPERTY AND ASSETS

Cash

Cash in hand (Including Foreign Currencies) 3 975,608,716 1,266,962,343 Balance with Bangladesh Bank & its Agent Banks 3.1 (Including Foreign Currencies) 11,145,075,318 7,627,790,250

12,120,684,034 8,894,752,593 Balance with other Banks and Financial Institutions 4 In Bangladesh 2,511,309,841 1,870,113,449 Outside Bangladesh 332,880,245 1,178,527,956

2,844,190,086 3,048,641,405

Placement with Banks & other Financial Institutions 5 9,474,249,214 9,064,879,564 Investments in Shares & Securities 6 Government 5,116,000,000 5,500,000,000

Others 2,707,725,686 3,038,183,470 7,823,725,686 8,538,183,470

Investments 7General Investment etc. 98,611,135,398 76,398,581,962 Bills Purchased and Discounted 9,288,823,913 9,523,749,964

107,899,959,311 85,922,331,926

Fixed Assets including Premises, Furnitures and Fixtures 8 2,675,858,796 2,653,882,382 Other Assets 9 10,898,800,197 8,493,893,405 Non Banking Assets - - Total Assets 153,737,467,324 126,616,564,745

LIABILITIES AND CAPITALLiabilities Placement from Banks & other Financial Institutions 10 6,150,000,000 4,700,000,000 Deposits and Other Accounts 11

Mudaraba Savings Deposits 9,818,279,970 6,468,729,754 Mudaraba Term Deposits 75,356,410,289 62,746,867,195 Other Mudaraba Deposits 23,923,887,375 19,288,768,828 Al-Wadeeah Current & Other Deposit Accounts 11.2 13,059,516,630 12,198,626,163 Bills Payable 11.3 2,277,639,901 1,316,909,958 Cash Waqf Fund 99,275,350 84,577,685

124,535,009,515 102,104,479,583

Other Liabilities 12 10,904,150,387 8,727,079,569 Deffered Tax Liabilities/ (Assets) 13 4,924,028 1,577,248

Total Liabilities 141,594,083,930 115,533,136,400

Capital/Shareholders’ Equity

Paid-up Capital 14.2 7,031,415,640 7,031,415,640

Statutory Reserve 15 2,784,497,917 2,122,994,344

Revaluation reserve on Fixed Assets 16 1,055,679,727 1,082,485,102

Retained Earnings 17 1,271,790,110 846,533,259

Total Shareholders’ Equity 12,143,383,394 11,083,428,345

Total Liabilities & Shareholders’ Equity 153,737,467,324 126,616,564,745

Social Islami Bank LimitedBalance Sheet

As at 31 December 2014

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Taka Taka


Acceptances and Endorsements 18.1 15,302,832,788 14,986,882,397

Irrevocable Letters of Credit (including Back to Back Bills) 18.2 11,017,261,193 9,854,239,886

Letters of Guarantee 18.3 3,936,013,964 3,246,076,013

Bills for Collection 18.4 1,905,746,855 2,383,031,491

Other Contingent Liabilities 18.5 - -

Total 32,161,854,799 30,470,229,787

OTHER COMMITMENTS

Documentary credits and short term trade related transactions - -

Forward assets purchased and forward deposits placed - -

Undrawn note issuance and revolving underwriting facilities - -

Undrawn formal standby facilities, credit lines and other

commitments - -

Total - -

Total Off Balance Sheet Items including

Contingent Liabilities 32,161,854,799 30,470,229,787





Kazi Zahir Khan & Co.Chartered Accountants

Off-Balance Sheet ItemsAs at 31 December 2014

Financial Statem

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Social Islami Bank LimitedPro�t And Loss Account


Note(s)2014 2013Taka Taka

Investment Income 19 13,943,265,660 13,629,421,075 Less: Pro�t paid on Deposits 20 9,007,200,466 9,706,867,767 Net Investment Income 4,936,065,194 3,922,553,308 Income from Investment in Shares and Securities 21 296,946,697 325,466,389 Commission, Exchange and Brokerage 22 1,188,376,725 1,026,570,990 Other Operating Income 23 289,487,335 204,701,630

1,774,810,756 1,556,739,009 Total Operating Income 6,710,875,950 5,479,292,317

Salaries and Allowances 24 1,656,268,663 1,505,499,817 Rent, Taxes, Insurances, Electricity etc. 25 253,253,969 227,846,521 Legal Expenses 26 8,142,318 7,926,138 Postage, Stamps, Telecommunication etc. 27 7,995,021 8,225,162 Stationery, Printings, Advertisements etc. 28 80,825,871 90,997,426 Managing Director’s Salary and Allowances 29 8,900,000 8,605,485 Directors’ Fees & Expenses 30 6,397,857 4,264,575 Shariah Supervisory Committee’s Fees & Expenses 31 342,050 254,362 Auditors’ Fees 718,750 517,500 Depreciation & Repair of Bank’s Assets 32 207,810,388 173,161,578 Other Expenses 33 515,946,385 557,932,031 Total Operating Expenses 2,746,601,272 2,585,230,595

Pro�t/(Loss) before Provision 3,964,274,678 2,894,061,722 Provisions for Investments 651,756,813 864,492,279 Other Provisions 34 5,000,000 4,910,000 Total Provision 35 656,756,813 869,402,279 Total Profit/(Loss) before Tax 3,307,517,865 2,024,659,443

Provision for Income Tax 36 1,403,792,939 804,458,005

Net Profit/(Loss) after Tax 1,903,724,926 1,220,201,438

AppropriationStatutory Reserve 661,503,573 404,931,889 Retained Earnings 1,242,221,353 815,269,550

1,903,724,926 1,220,201,438

Earning Per Share (EPS) 37 2.71 1.74



Signed as per our report of same dateDhaka, BangladeshDate: 28 February 2015

Kazi Zahir Khan & Co.Chartered Accountants

Financial Statem

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4

196

Note(s)2014 2013Taka Taka

Cash Flow from operating activities Investment Income receipt 38 13,943,265,660 13,629,421,075 Pro�t paid on deposits (7,712,225,604) (6,901,278,644) Dividend receipts 296,946,697 325,466,389 Fees & commission receipt 567,544,000 555,276,602 Cash payments to employees (1,665,168,663) (1,514,105,302) Cash payments to suppliers (88,820,892) (122,542,073) Income tax paid (796,019,502) (1,352,761,601) Receipts from other operating activities 39 910,320,059 699,315,503 Payments for other operating activities 40 (811,800,108) (786,141,855)

Operating pro�t before changes in operating assets and liabilities 4,644,041,647 4,532,650,094 Changes in operating assets and liabilities

Statutory deposits - - Net trading securities 714,457,784 (2,394,168,486) Investments to other banks - - Investment to customers (21,977,627,385) (9,897,358,018) Other assets 41 (1,608,887,290) (98,361,181) Deposits from other banks 9,374,714,973 (6,383,245,811) Deposits received from customers 11,760,840,098 12,087,843,800 Other liabilities on account of customers - - Trading liabilities - - Other liabilities 42 119,867,846 334,619,590 Sub Total (1,616,633,974) (6,350,670,106)

A. Net Cash �ow from operating activities 3,027,407,672 (1,818,020,012) Cash �ows from investing activities

Proceeds from sale of securities - - Payment for purchases of securities - - Proceeds from sale of �xed assets - - Purchases of property, plant & equipments (202,788,023) (559,200,216) Purchase/Sale of subsidiaries - -

B. Net Cash �ows from investing activities (202,788,023) (559,200,216) Cash �ows from �nancing activities

Receipts from issue of debt instruments 1,450,000,000 - Payments for redemption of debt instruments - - Receipts from issue of right shares/ordinary share - - Dividend paid in cash (843,769,877) (318,744,971)

C. Net Cash �ow from �nancing activities 606,230,123 (318,744,971)D. Net increase/(decrease) in cash & cash equivalents (A+B+C) 3,430,849,772 (2,695,965,199)

E. Cash and cash equivalents at the beginning of the year 21,008,273,562 23,704,238,761 F. Cash and cash equivalents at the end of the year (D+E) 43 24,439,123,334 21,008,273,562

Annexed notes ( 1 to 48) form an integral part of these �nancial statements



Social Islami Bank LimitedCash Flow Statement


Financial Statem

entsS

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ial Is

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197

So

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5

Financial Statem

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198

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Up

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year

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-

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6

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1

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4,03

4

Bal

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with

oth

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and

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900

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971

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2

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224

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in S

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1

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7

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17,

263,

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1

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323

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5

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747

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Febr

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201

5

Financial Statem

entsS

oc

ial Is

lam

i Ba

nk

Lt

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199

Social Islami Bank LimitedNotes To The Financial Statements

As at and for the year ended 31 December 2014

1 The Bank and its activities

1.1 Status of the Bank

The Bank was incorporated as a Public Limited Company in Bangladesh in the year 1995 under Companies Act, 1994. The Bank is one of the interest-free Shariah based banks in the country and its modus- operandi are substantially different from other conventional Banks. The Bank within the stipulations laid down by Bank Companies Act, 1991 and directives as received from time to time from Bangladesh Bank, provides all types of commercial Banking services. Besides as a matter of policy the Bank conducts its business on the principles of Mudaraba, Musharaka, Murabaha, Bai-Muazzal & Hire Purchase transaction approved by Bangladesh Bank. The Bank is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited as a publicly traded company. The Bank carries its Banking activities through one hundred (100) branches operating as per Islamic Shariah prevailing in the country.

The Registered Of�ce of the bank is located at its own premises at ‘City Center’, 90/1 Motijheel Commercial Area, Dhaka-1000.

1.2 Enlistment with the Stock Exchanges

The bank subscribed for IPO (Initial Public Offer) in the year 2000 and initially listed with Dhaka Stock Exchange (DSE) Ltd. and later on in the year 2005 with Chittagong Stock Exchange (CSE) Ltd.

Subsidiaries of SIBL: 1.3 SIBL Securities Limited

SIBL Securities Limited, a wholly owned subsidiary of SIBL, was incorporated as a Public Limited Company under the Companies Act,1994 vide certi�cation of incorporation no. C - 85876/10 dated 20 July 2010 and obtained its certi�cate of commencement of business on the same day. The company has already got it license for trading with Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). The company started its commercial operation in the month of January 2012.

The principal place of business is the Registered Of�ce at 3rd �oor, 15 Dilkusha C/A, Dhaka-1000.

The principal objectives of the company for which it was established are to carry on the business of stock brokers,

dealers in relation to shares and securities dealings and other services as mentioned in the Memorandum and Articles of Association of the company.

1.4 SIBL Investment Limited SIBL Investment Limited, a wholly owned subsidiary of SIBL, was incorporated as a Public Limited Company under the

Companies Act,1994 vide certi�cation of incorporation no. C - 86726/10 dated 30 August 2010 and obtained its certi�cate of commencement of business on the same day.

The principal objectives of the company for which it was established are to carry on the business of stock brokers, dealers in relation to shares and securities dealings, to underwrite, manage and distribute the issue of stocks etc. and other services as mentioned in the Memorandum and Articles of Association of the company.

Name of the Company Paid up Capital (Taka) Percentage of Share Holding

SIBL Others

1 SIBL Securities Limited 1,230,000,000 99.9999187% 0.0000813% 2 SIBL Investment Limited 250,000,000 99.9997600% 0.0002400%

Total Capital 1,480,000,000

1.5 Off-Shore Banking Unit (OBU)

Bangladesh Bank approved operation of Off-Shore Banking Unit (OBU) of Social Islami Bank Limited located at Banani Branch, through their letter no. BRPD(P-3)744(119)/2010-4652, Dated: 11.11.2010. The bank has commenced the operation of its Off-Shore Banking Unit (OBU) from 02.05.2012.

Financial Statem

entsa

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4

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1.6 Compliance of Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting standards (BFRS):

In compliance with BAS No. Status

Presentation of Financial Statements 1 Applied

Inventories 2 N/A

Statement of Cash Flows 7 AppliedAccounting Policies, Changes in Accounting Estimates and Errors 8 Applied

Events After the Reporting Period 10 Applied

Construction Contracts 11 N/A

Income Taxes 12 Applied

Property, Plant and Equipment 16 Applied

Leases 17 Applied

Revenue 18 Applied

Employee Bene�ts 19 AppliedAccounting for Government Grants and Disclosure of Government 20 N/A

The Effects of Changes in Foreign Exchange Rates 21 Applied

Borrowing Costs 23 AppliedRelated Party Disclosures 24 AppliedAccounting and Reporting by Retirement Bene�t Plans 26 N/AConsolidated and Separate Financial Statements 27 AppliedInvestments in Associates 28 N/AInterests In Joint Ventures 31 N/AFinancial Instruments: Presentation 32 Applied to the context of compliance with

BRPD circular no. 15, Dated: 09.11.2009, DOS circular no. 5, Dated: 28.01.2009.

Earnings Per Share 33 AppliedInterim Financial Reporting 34 AppliedImpairment of Assets 36 AppliedProvisions, Contingent Liabilities and Contingent Assets 37 Applied to the context of compliance with

BRPD circular no. 5, Dated: 05.06.2006 and BRPD circular no. 14, Dated: 14.09.2012.

Intangible Assets 38 AppliedFinancial Instruments: Recognition and Measurement 39 Applied to the context of compliance with

BRPD circular no. 15, Dated: 09.11.2009, DOS circular no. 5, Dated: 26.05.2008 and DOS circular no. 5, Dated:28.01.2009.

Investment Property 40 N/AAgriculture 41 N/A

In compliance with BFRS No. Status

First-time Adoption of International Financial Reporting Standards 1 N/AShare-based Payment 2 N/ABusiness Combinations 3 AppliedInsurance Contracts 4 N/ANon-current Assets Held for Sale and Discontinued Operations 5 N/AExploration for and Evaluation of Mineral Assets 6 N/AFinancial Instruments: Disclosures 7 Applied to the extent of compliance

with core risk management guideline of Bangladesh Bank.

Operating Segments 8 N/AConsolidated Financial Statements 10 Applied

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2 Basis of Presentation of Financial Statements and Signi�cant Accounting Policies

2.1 Basis of Preparation of the Financial Statements

Going Concern Estimation The Financial Statements, namely, Balance Sheet, Pro�t and Loss Account, Cash Flow Statements, Statement of Changes

in Equity, Statement of Liquidity Analysis and relevant notes to the �nancial statements and disclosures thereto, of the Bank are prepared under historical cost convention on a going concern basis. Management of the bank has made an estimation that there are no possibility to liquidate the entity or to cease trading, or has no realistic alternative but to do so.

2.1.1 Statement of Compliance The �nancial statements of the bank have been prepared in accordance with Bangladesh Financial Reporting Standards

(BFRS), and the requirements of Bank Companies Act 1991(as ammended upto year 2014), BRPD circular no: 15 dated 09.11.2009 along with other rules and regulations issued by Bangladesh Bank, the Companies Act 1994, the Securities and Exchange Rules 1987. In case any requirement of the Bank Companies Act 1991, and provisions and circulars issued by Bangladesh Bank differ with those of BFRS, the requirement of the Bank Companies Act 1991, and provisions and circulars issued by Bangladesh Bank shall prevail. Material and partial departures from the requirements of BFRS as well as the compliance with the Bangladesh Bank circulars are as follows:

i) Investment in Shares and Securities

The Bank investment in different securities has been valued on 31.12.2014 as under:

Quoted Bond & Shares At cost or Market Value whichever is lower

Unquoted Shares At cost

Bangladesh Govt. Islamic Bond At cost

CDBL Share & Preference Share At cost

All investment in securities are initially recognized at cost, including acquisition charges associated with the investment. Premiums are amortised and discounts are accredited.

As per BRPD circular no. 15 (09 November 2009), investments in quoted shares and unquoted shares are revalued at the year end at market price and as per book value of last audited balance sheet respectively. Provision should be made for any loss arising from diminution in value of investment. As such the company measures and recognizes investment in quoted and unquoted shares at cost if the year–end market value (for quoted shares) and book value (for unquoted shares) are higher than the cost. However as per requirements of Bangladesh Accounting Standard (BAS)- 39, investment in shares falls either under “at fair value through pro�t and loss account” or under “available for sale” where any change in the fair value at the year-end is taken to pro�t and loss account or revaluation reserve respectively. SIBL recognises its ‘Investment in Shares and Securities’ as per BAS-39 and accounted for the required pro�t/(loss) after adjustment of the value of shares and securities through pro�t and loss account.

Derivatives

Typical examples of derivatives are futures and forward, swap and option contracts. As a shariah based Islami bank, SIBL can not take part in issuing or purchasing any derivatives.

ii) Revaluation gains/losses on Government securities

SIBL is a bank running on Islamic Shariah principle. Hence, we do not participate in buying interest bearing Government securities.

iii) Investments and Provisions As per BAS-39 impairment assessment should be done by considering whether any objective evidence of impairment exists

for �nancial assets that are individually signi�cant. For �nancial assets that are not individually signi�cant, the assessment can be performed on an individual or collective (portfolio) basis.

However, Provision for classi�ed and unclassi�ed investment is made on the basis of year end review by the management and of instructions contained in Bangladesh Bank BCD Circular No.34 dated 16 November 1989, BCD Circular No.20 (27 December 1994), BCD Circular No. 12 (04 September 1995), BRPD Circular No. 16 (06 December 1998), BRPD Circular No. 9 (14 May 2001), BRPD Circular Letter No. 10 (20 August 2005), BRPD Circular Letter No. 10 (18 September 2007), BRPD Circular No. 5 (29 April 2008), BRPD circular Letter no: 32 (10 October 2010), BRPD Circular no: 14 (23 September 2012), BRPD circular no:19 (27 December 2012), and BRPD circular no: 05 (29 May 2013) at the following rates:

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Particulars Rate

General Provision on Contingent Liability/ Non Funded Business 1%

General Provision on Unclassi�ed Investment 1%

General Provision on Investment for Small and Medium Enterprise 0.25%

General Provision on Investment for Professionals 2%

General Provision on Investment for House Financing 2%

General Provision on Investment for Consumer Financing 5%

General Provision on Investment for Short term Agri/ Micro credit 5%

General Provision on Special Mention Account 5%

Speci�c Provision on Substandard Investment 20%

Speci�c Provision on Doubtful Investment 50%

Speci�c Provision on Bad / Loss Investment 100%

As per BRPD Circular no: 14 (23 September 2012), BRPD circular no: 19 (27 December 2012), and BRPD circular no: 05 (29 May 2013) a general provision at 0.25% to 5% under different categories of unclassi�ed investments (good/standard investments) has to be maintained regardless of objective evidence of impairment.

As per same circulars mentioned above SIBL has to maintain provision @ 20%, 50% and 100% for investments classi�ed as sub-standard, doubtful and bad & loss category respectively depending on the duration of overdue.

As per BRPD circular no. 10 (18 September 2007) and BRPD Circular no: 14 (23 September 2012), a general provision at 1% is required to be provided for all off-balance sheet risk exposures.

However, such general provision on general investment & off-balance sheet exposures and speci�c provisions on classi�ed investmnets cannot satisfy the conditions of provision as per Bangladesh Accounting Standard (BAS)-39.

iv) Recognition of pro�t in suspense

Pro�t / Rent / Compensation Suspense account and Doubtful Income

Pro�t / Rent / compensation accrued on classi�ed investments are suspended and accounted for as per BRPD Circular no: 15 (09 November 2009) issued by the Bangladesh Bank. Moreover, incomes that are irregular (doubtful) as per Shariah are also not included in the distributable income of the Bank.

Income on unclassi�ed overdue investment of Murabaha and Bai-Muazzal is charged under compensation account instead of showing as income of the Bank.

Interest received from NOSTRO accounts are not credited to the income as per Islamic Shariah.

v) Other comprehensive income As per BAS-1 (Presentation of Financial Statements), other comprehnsive income (OCI) or components of OCI, as a part

of �nancial statements are to be included in a single Other Comprehensive Income Statement.

However, as per BRPD circular no. 15 (09 November 2009), there are no statement of OCI and we follow the template for reporting as per the circular. If there is any component of OCI, it is shown in Statement of Changes in Equity.

vi) Financial instruments-presentation and disclosure

Financial instruments-presentation and disclosures are made in several cases as per guidelines and instructions of

Bangladesh Bank in particular and respective cases. Requirements of BAS-32 and BFRS-7 can not be followed due to the presentation and disclosure obligations of Bangladesh Bank.

vii) Financial guarantees Financial guarantees such as letter of credit, letter of guarantee etc. are treated as off-balance sheet items as per relevant

Bangladesh Bank Circular, BRPD 15 (09 November 2009) whereas as per BAS 39, these should be treated as ‘Other Liability’. No liability is recognised for the guarantee except the cash margin.

SIBL accounts for the �nancial guarantees as per BRPD 15 (09 November 2009) and liability for �nancial guarantees are not recognised initially at their fair value and the fair value amortisation of the same liability is not done either as per BAS

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39. So that the �nancial guarantees are not also carried at the higher of this amortised amount and the present value of any expected payment when a payment under the guarantee has become probable.

viii) Cash and cash equivalent As per BRPD circular no 15 (09 November 2009), cash and cash equivalents include notes and coins in hand, balances

lying with ATM, unrestricted balances held with Bangladesh Bank and its agent Bank, balance with other Banks and �nancial institutions, placement with Banks and other �nancial institutions.

As per BAS 7, cash and cash and cash equivalents should be reported as cash item and reconciliation of the amounts of the items in its cash �ow statement should be presented also. However, presentation and reconciliation is done in line with BRPD circular 15 and BAS 7.

ix) Non-banking asset In accordance with BRPD 15, non-banking asset should be presented in the face of Balance sheet if there is any. But, no

BFRS indicates for accounting of non-banking assets. However, there is no non-banking assets of SIBL.

x) Cash Flow Statement Bangladesh Accounting Standard (BAS)-7 “ Cash Flow Statement” requires SIBL to prepare cash �ow statement under

direct method. However, Cash Flow Statement has been prepared under a adopted method of direct and indirect in accordance with the BRPD Circular No. 15, (09 November 2009) issued by the Banking Regulation and Policy Department of Bangladesh Bank.

xi) Balance with Bangladesh Bank (Cash Reserve Requirement, CRR)

BAS 7 requires balance with Bangladesh Bank to be treated as other assets. However, as per BRPD circular 15, SIBL

treats balance with Bangladesh Bank as cash and cash equivalent though the amount is restricted for CRR purpose and can not be used in our day to day operation requirement.

xii) Presentation of intangible asset As per BAS 38, intangible assets are accounted for and amortized. Related necessary disclosures for the intangible asset;

i.e computer software is given in note 8.1.

There is no restriction or recommendation for accounting for the intangible assets as per any Bangladesh Bank circular.

xiii) Off-balance sheet items Contingent Liabilities Any possible obligation that arises from past events and the existence of which will be con�rmed only by the occurrence

or non-occurrence of one or more uncertain future events not wholly within the control of the Bank; or Any present obligation that arises from past events but is not recognised because:

* it is not probable that an out�ow of resources embodying economic bene�ts will be required to settle the obligation;

* the amount of the obligation cannot be measured with suf�cient reliability.

Contingent liabilities are not recognised but disclosed in the �nancial statements unless the possibility of an out�ow of resources embodying economic bene�ts is reliably estimated. Contingent assets are not recognised in the �nancial statements as this may results in the recognition of income which may never be realised. However, the amount of cash margin is recognised as liability.

As per BRPD circular 15, contingent liabilities are recognised as off balance sheet items in absence of any recommendation

in BFRS. xiv) Investments net off provisions Investments are presented at its actual value without netting off as per BRPD circular 15 though it is to be presented at net

off value as per related BFRS.

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2.2 Consolidation Procedures (BAS-27)

The consolidated �nancial statements include the �nancial statements of Social Islami Bank Limited and its two (2) subsidiaries SIBL Securities Limited and SIBL Investment Limited, made up to the end of the �nancial year.

The consolidated �nancial statements have been prepared in accordance with Bangladesh Accounting Standard (BAS) 27: Consolidated and Separate Financial Statements, Bangladesh Financial Reporting Standards (BFRS):3- Business Combinations and Bangladesh Financial Reporting Standards (BFRS):10- Consolidated Financial Statements. The consolidated �nancial statements are prepared to a common �nancial period ended 31 December 2014.

2.3 Subsidiary Subsidiary is that enterprise which is controlled by the Bank. Control exists when the Bank has the power, directly or

indirectly, to govern the �nancial and operating policies of an enterprise from the date that control commences until the date that control ceases. The �nancial statements of subsidiary are included in the consolidated �nancial statements from the date that control effectively commences until the date that the control effectively ceases. Subsidiary company is consolidated using the purchase method of accounting.

2.4 Functional and Presentation Currency

These �nancial statements are presented in Bangladesh Taka (Tk) which is the Bank’s functional currency. Except as indicated, �gures have been rounded off to the nearest Taka.

2.5 Use of estimates and judgements

The preparation of the consolidated �nancial statements in conformity with BFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

2.6 Foreign Currency Transactions /Translation

Foreign currency transactions are converted into equivalent Taka currency using the ruling exchange rates on the dates of such transaction(s).

Assets and liabilities in foreign currencies as on 31 December 2014 have been converted into Taka currency at the

weighted average of the prevailing buying and selling rate of inter-bank market as determined by Bangladesh Bank on the closing date of every month. Balances held in foreign currencies other than US dollar are translated into equivalent US dollar at buying rates of New York closing of the previous day. Differences arising through buying and selling transactions of foreign currencies on different dates during the period from January to December 2014 have been adjusted by debiting or crediting to the Pro�t and Loss Account.

2.7 Reporting Period These �nancial statements cover twelve months from 01 January to 31 December 2014.

2.8 Statement of Changes in Equity

The statement of changes in equity re�ects information about the increase or decrease in net assets or wealth.

2.9 Liquidity Statement The liquidity statement of assets and liabilities as on the reporting date has been prepared on residual maturity term which

has been given in the statement.

2.10 Fixed Assets, Depreciation and Revaluation (BAS-16)

Assets have been shown at cost less depreciation as per paragraph 43 of Bangladesh Accounting Standard (BAS)-16 “Property, Plant & Equipments”. Depreciation has been charged on reducing balance method except motor vehicle; which has been charged on straight-line method. Depreciation on addition of assets has been charged from the date of purchase. Rate of depreciation are as under:

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Particulars Rate (%) Estimated life(Years)

Building 2.5 40

Furniture & Fixtures 15 6.67

Of�ce Equipment 20 5

Software 10 10

Vehicles 20 5

Books 10 10

Revaluation

Land and building are revalued as per Bangladesh Accounting Standard (BAS)-16, ‘Property, Plant and Equipment’ as well as Bangladesh Bank BCD circular letter no. 12 & 18, dated: 20 April 1993 & 15 June 1993, respectively and BRPD circular no. 10 and 09, Dated: 25 November 2002 and 31 December 2008.

The Bank revalued its �xed assets on 20.03.2011 by two separate valuers, namely- ‘Commodity Inspection Services (BD) Ltd.’ and ‘Royal Inspection International Ltd.’ But the effects on assets have been accounted for as on 30.03.2011.

Reserve is created by the sum of revaluation surplus and depreciation is charged on the revalued assets except land as per the respective rate of depreciation.

Leases (BAS-17)

No asset of Social Islami Bank Ltd. has been identi�ed/classi�ed as Operating or Finance lease as per BAS-17.

2.11 Impairment of Assets (BAS-36)

The policy for all assets or cash-generating units for the purpose of assessing such assets for impairment is as follows:

The Bank assesses at the end of each reporting period or more frequently if events or changes in circumstances indicate that the carrying value of an asset may be impaired, whether there is any indication that an asset may be impaired. If any such indication exits, or when an annual impairment testing for an asset is required, the bank makes an estimate of the assets recoverable amount. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount by debiting to pro�t & loss account. Fixed assets are reviewed for impairment whenever events or charges in circumstances indicate that the carrying amount of an asset may be impaired.

2.12 Capital/Shareholders’ Equity Authorised capital Authorised capital is the maximum amount of share capital that the Bank is authorised by its Memorandum and Articles of

Association. Paid up Capital Paid up capital represents total amount of shareholder capital that has been paid in full by the ordinary shareholders.

Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to vote at shareholders’ meetings. In the event of a winding-up of the Bank, ordinary shareholders rank after all other shareholders and creditors and are fully entitled to any residual proceeds of liquidation. Details are shown in Note-14.2.

Statutory Reserve

Statutory reserve has been maintained @ 20% of pro�t before tax in accordance with provisions of section 24 of the Bank Companies Act, 1991 (as amended upto 2014) until such reserve equal to its paid up capital together with the share premium.

2.13 Revenue Recognition (BAS-18) (i) Investment income & Revenue Recognition

Pro�t on investments and deposits are recognized against the investment of fund under Mudaraba, Musharaka, Murabaha,

Bai-Muazzal and Hire Purchase etc. in line with related approved policy of the Board. Pro�t on investment ceases to be taken into income when such investment accounts are classi�ed. It is then kept in compensation/rent suspense account and the same is accounted for on cash basis as and when recovered or de-classified as per related BRPD circular. F e e s and commission income are recognized when it is earned.

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Income from investment in shares and securities is recognized on actual basis except Bangladesh Govt. Mudaraba Bond income which is recognized on accrual basis.

Sharing of Investment Income

In case of Investment, Mudaraba fund gets preference over cost free fund. The investment income earned through deployment of Mudaraba Fund is shared by Bank and the Mudaraba Depositors at the predetermined ratio �xed by the Bank.

(ii) Profit Paid on Deposits and Other Expenses

Pro�t paid on deposits and other expenses are recognized on accrual basis.

As per Mudaraba principle of Islamic Shari’ah, the Mudaraba Depositors are entitled to get minimum 75% of the investment income earned through deployment of Mudaraba Fund as per weightage assigned to each type of Mudaraba Deposit. In the year 2014, SIBL paid 80.45% of investment income earned through deployment of Mudaraba fund. Moreover, in some Mudaraba deposits, additional rate was allowed over the rate as per weightage. Mudaraba Depositors do not share any income derived from various banking services where the use of fund is not involved and any income derived from Investing Bank’s Equity and other Cost Free Fund. Al-Wadeeah Depositors do not share any income of the Bank.

Pro�t is paid/provided to Mudaraba Deposit accounts at provisional rate on half yearly/anniversary basis considering overall growth, performance, and pro�tability of the Bank during the year. Final rates of pro�t of any accounting year are declared after �nalization of Shari’ah Inspection Report and certifying the Investment Income of the Bank by the Statutory Auditors.

2.14 Provision for Taxation (BAS-12) (a) Current Tax Provision for income tax has been calculated as per Income Tax Ordinance, 1984 as amended by the Finance Act 2014

considering all applicable allowances and disallowances.

(b) Deferred Tax The Bank has accounted for deferred tax as per Bangladesh Accounting Standard (BAS)-12, “Income Taxes”.

2.15 Zakat Fund The Bank has created a Zakat Fund @ 2.58% for the period ended 31 December 2014 on reserve retained through out

the year. Hizri Calendar has been considered to calculate 2.5% of Zakat Fund. Since Hizri Calendar counts 11 days less than the English Calendar, the percentage 2.5% represents equivalent to 2.58% of English Calendar. It is to be noted here that shareholders should pay their individual Zakat based on face value (Taka- 10.00 per share) of their individual shareholding along with their other zakatable assets.

2.16 Retirement Bene�ts (BAS-19) De�ned contribution plans: (a) Provident Fund The Bank operates a contributory provident fund duly approved by the Income Tax Authority. Both the employer and all

eligible employees contribute @ 10% of basic salary to this fund. Trustee board administers this fund.

De�ned bene�t plans: (b) Gratuity As per service rules of the Bank, employee who has completed �ve years regular service , are eligible for yearly gratuity @ 1

(one) month basic salary for every full year of regular service and employee who has completed seven years regular service are eligible for yearly gratuity @ 2 months basic salary for full year regular service. The Bank has complied with Bangladesh Accounting Standard (BAS) -19, “Employee Bene�ts” and necessary provision i.e @ 12.7% of basic salary of the regular employees have been made as per actuary valuation of Z. Halim & Associates, Actuarial & Pension Consultants for the period ended 31 December 2014.

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2.17 Reconciliation of Inter Bank / Branch Transactions

Books of accounts with regard to inter bank/branch transactions (In Bangladesh and outside Bangladesh) are reconciled and there are no material differences that may affect the �nancial statements signi�cantly.

2.18 Risk Management Today’s most risky nature of Banking business has caused the Central Banks of every country much concerned about

the risk factors affecting the �nancial position of the banks. In this connection every Central Banks have come forwarded to establish a general framework to defeat the risk factors considering the laws of the land. Bangladesh Bank has also undertaken an overall core-risk management project under which every bank shall be bounded to the authoritative covenants to install risk management system. Social Islami Bank Ltd. has established approved policies covering major areas such as (a) Investment Risk Management, (b) Foreign Exchange Risk Management, (c) Asset Liability Management Risk (d) Money Laundering Risk (e) Internal Control & Compliance Risk and (f) Information & Communication Technology Security Risk (g) Internal Audit (h) Fraud and Forgeries to the DOS circular no: 02 (15 February 2012) regarding ‘Risk Management Guidelines’ for Banks, Bank Companies Act 1991 (as amended upto 2013) and other guidelines of Bangladesh Bank. In addition, the bank is also following relevant Bangladesh Bank guidelines on risk based capital adequacy, stress testing and managing the banking risks in other core risk areas.

The bank has established an independent Risk Management Department (RMD) as per DOS cirular no:02 (15 February 2012). The RMU conducts stress testing as per DOS circular no: 01 (23 February 2011), for examining the Bank’s capacity of handling future shocks, as well as deals with all potential risks that might occur in future.

The prime objective of the risk management is that the bank takes well calculative business risks while safeguarding the bank’s capital, its �nancial resources and pro�tability from various risks. In this context, the bank took steps to implement the guidelines of Bangladesh Bank as under:

(a) Investment Risk Management

Investment risk is one of the major risks faced by the bank. This can be described as potential loss arising from the failure of a counter party to perform as per contractual agreement with the bank. The failure may results from unwillingness of the counter party or decline of �nancial condition. Therefore, the Bank’s investment risk management activities have been designed to address all these issues.

The Bank has segregated duties of the Of�cers / Executives involved in investment related activities. A separate Corporate Division has been formed at Head Of�ce, which is entrusted with the duties of maintaining effective relationship with the customer, marketing of credit products, exploring new business opportunities etc. Moreover, investment approval, administration, monitoring and recovery functions have been segregated. For this purpose, three separate units have been formed within the Credit Division. These are (a) Investment Risk Management Unit, (b) Investment Administration Unit and (c) Investment Monitoring & Recovery Unit. Investment Risk Management Unit is entrusted with the duties of maintaining asset quality, assessing risk in lending to a particular customer, sanctioning credit, formulating policy / strategy for lending operation etc.

A thorough assessment is done before sanctioning of investment facility at Investment Risk Management Unit. The risk assessment includes borrower risk analysis, �nancial analysis, industry analysis, historical performance of the customer, security of the proposed credit facility etc. The assessment process starts at Corporate Division by the Relationship Manager/ Of�cer and ends at Investment Risk Management Unit when individual executives. Proposal beyond their delegation are approved / declined by the Executive Committee and / or the Management.

In determining single borrower / large investment limit, the Bangladesh Bank instructions are strictly followed. Internal audit is conducted on periodical interval to ensure compliance of Bank’s and regulatory policies. Investments are classi�ed as per Bangladesh Bank’s guidelines.

(b) Foreign Exchange Risk Management

Foreign Exchange risk is de�ned as the potential change in earnings arising due to change in market prices. The foreign

exchange risk of the bank is minimal as all the transactions are carried out on behalf of the customers against underlying L/C commitments and other remittance of single borrower limit shown in note.

International Department independently conducts the transactions relating to foreign exchange and is responsible for veri�cation of the deals and passing of their entries in the books of account. All foreign exchange transactions are revalued at Mark-to-market rate as determined by Bangladesh Bank at the month end. All NOSTRO Accounts are reconciled on monthly basis and the management for its settlement reviews outstanding entry beyond 30 days.

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(c) Asset Liability Management Risk

Asset Liability Management (ALM) has been de�ned as a planned, structured and systematic process of managing the asset and liability with a view to lead the Bank to a balanced and sustainable growth through minimizing various business risk factors - market risk and liquidity risk. According to the Bangladesh Bank guidelines and considering the most practical aspects of the Bank, an approved policy manual on ALM has been prepared so that it could be followed consistently every sphere of the management. To support the ALM process, the Bank has established a committee called “Asset Liability Committee (ALCO)” headed by the Managing Director and holds meeting at least one in every month. ALM Desk, an exclusive functional and operational desk for the asset liability management, is embodied herewith the ALCO to function under the direct control of Financial Administration Division (FAD).

ALCO reviews the liquidity requirement of the Bank, the maturity of assets and liabilities, deposit and lending, pricing strategy and the liquidity contingency plan at the threshold of stress liquidity situation. Besides that monitoring and analyzing of signi�cant volatility in net investment income, investment value and exchange earnings etc. are the common and regular job of the ALM desk.

(d) Money Laundering Risk Social Islami Bank Limited (SIBL) has framed an approved Money Laundering Prevention Policy Guideline so that it could

be suf�cient enough to protect the bank from tribulations of money laundering.

As per Money Laundering Prevention Act, 2002 and Money Laundering Prevention circular, a Central Compliance Unit (CCU) has been formed at Head Of�ce in SIBL and a designated person has been nominated to supply any information if required and report any abnormal and suspicious transactions to Bangladesh Bank through CCU. Chief Anti Money Laundering Compliance Of�cer (CAMALCO) has been designated at head of�ce and Branch Anti Money Laundering Compliance Of�cers (BAMALCO) has been nominated at branches. The second man of the sixty-four branches of SIBL has been complying the responsibility for their respective branches as Branch Anti Money Laundering Compliance Of�cers (BAMALCO) as per the direction of Bangladesh Bank.

Know Your Customer (KYC) pro�le, Risk Rating and Assessment (RRA) pro�le and Transaction Pro�le (TP) have been introduced as per the direction of Bangladesh Bank. These pro�les facilitate and ease the KYC procedures, risk categorization, transaction monitoring process, suspicious activity reporting process, self-assessment process, independent procedures testing system etc. Proper record keeping procedure has been established also.

The action plan regarding the KYC procedures of those accounts, which opened before 30-04-2002 already has been sent to the Bangladesh Bank. The branches, which are liable to act in accordance with this action plan, has been complying it properly and vigorously.

Various types of statements such as Quarterly STR, Quarterly KYC statement for legacy accounts, Bi-monthly statements

etc has been sent to the Bangladesh Bank properly. “ FIU Reporting System “ Version-1.0.3 Software has been installed all of the branches as per the direction of central bank. As a result, the soft copy of Cash Transaction Report (CTR) and Suspicious Transaction Report (STR) has been sent to Bangladesh Bank properly in due time.

The training procedure has been conforming as per the action plan, which was given to Bangladesh Bank. It provides signi�cant role to develop and to aware the staffs of SIBL about Anti Money Laundering. The management of the Bank is committed to train all of its workforces regarding anti money laundering.

(e) Internal Control and Compliance Risk

Internal controls ensure systematic and orderly �ow of various operational activities within the organization. Now a day in the biggest and complex business environment, compliance becomes one of the major concern to the corporate being major risk involved in non-compliance of statutory requirements and operational procedures. To protect and safeguard the Bank from any means of fraud and error as well as loss - Social Islami Bank has introduced the “Internal control and Compliance guideline and also established a separate department called “Internal Control and Compliance Department (ICCD)” at Head Of�ce staffed with some experienced senior Banker rest with the power and duties to train the employees of the bank, give direction, monitor, audit and establish control on day to day operational procedures and statutory and non-statutory compliances.

ICCD collects different periodical reports, departmental control function check list etc. for documentation and also

undertakes periodical and special audit of the branches and departments at Head Of�ce for review of the operation and compliance of statutory requirements and the Board Audit Committee reviews the reports.

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(f) Information and Communication Technology Security Risk

According to the latest requirement of the Bangladesh Bank on Core Risk Management, ICT policy guideline has been newly introduced at Social Islami Bank. The prime objective of such guideline is to protect data properties of the Banks from any means of loss, unauthorized use, forgery and destruction as well as documentation of all ICT related tasks to reduce man dependency and increase process dependency. According to this guideline, ICT department responses, monitors, trains and co-ordinates the total IT matter with other departments and branches so that man and machine could effectively co-opt on timely fashion. The ICT department ensures necessary guidelines / instructions to the Departments / Branches and monitors status of implementation strictly.

g) Internal Audit The bank initiates internal audit of the branches and head of�ce divisions on a periodical basis, concurrent basis and surprise

inspection is also done to check the compliance status of the cost centers of the bank. The internal audit is supervised under ICCD and a separate division named ‘Board Audit Cell (BAC)’ also conducts internal audit under supervision and direct authority of Board Audit Committee. This BAC directly reports to the Chairman of Board Audit Committee. This way a strong internal audit of the cost centers as well as of Head Of�ce Divisions are conducted to ensure all related compliance.

h) Fraud and Forgeries Fraud and Forgeries are a critical dimension, the banking industry is facing now a days. In order to safeguard the bank from

all probable fraud and forgeries that may occur in any respect, the bank has taken all possible safety security measures that are undertaken under direct supervision of ICCD. Concurrent audit, internal audit, Board audit etc. are done periodically along with surprise audit from time to time. Moreover, there are a lot of safety measures initiated at the branch level also. The core banking solution Ababil is desiged to prevent IT related fraud and forgeries.

2.19 Earnings Per Share (BAS-33) Basic Earnings Per Share has been calculated in accordance with Bangladesh Accounting Standard (BAS)-33: Earnings

Per Share (EPS), which has been shown on the face of pro�t and loss account. This has been calculated by dividing the basic earnings by the weighted average number of ordinary shares outstanding during the period. Prior year EPS has been restated as and when required.

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2014 2013

Taka Taka

3 Cash In hand:

In local currency 941,968,710 1,243,774,013

In foreign currencies 8,325,106 7,870,630

ATM balance 25,314,900 15,317,700

975,608,716 1,266,962,343

In Foreign Currencies

Foreign Currency

Amount in FC Exchange Rate

USD 106,273 77.95 8,283,979 7,829,502

S. Rial 1,940 21.20 41,128 41,128

8,325,106 7,870,630

3(a) Consolidated balance of cash in hand

Social Islami Bank Limited 975,608,716 1,266,962,343

Cash in hand of Subsidiary companies 693,475 251,624

SIBL Securities Limited 672,502 250,004

SIBL Investment Limited 20,973 1,620

976,302,191 1,267,213,967

3.1 Balance with Bangladesh Bank and its agent bank (Sonali Bank)

Balance with Bangladesh Bank (Note-3.1.1) 11,033,671,883 7,528,272,016

Balance with Sonali Bank (as agent of BB) (Note-3.1.2) 111,403,434 99,518,234

11,145,075,318 7,627,790,250

3.1.1 Balance with Bangladesh Bank (Including foreign currencies)

In local currency 10,612,711,221 6,434,688,027

In foreign currencies 420,960,662 1,093,583,989

11,033,671,883 7,528,272,016

3.1.2 Balance with Sonali Bank (as agent of Bangladesh Bank)

In local currency 111,403,434 99,518,234

3.2 Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in accordance with the clause (1) of Article 36 of Bangladesh Bank Order, 1972 (as amended upto 2003) and clause (1) of Section 33 of the Bank Companies Act, 1991 (as amended upto 2013) respectively and subsequent DOS circular no: 05/2008, DOS circular letter no.05/2009, DOS circular letter no.21/2009 and DOS circular letter no.01/2014.

According to latest DOS circular no.01/2014, dated:19/01/2014, i.e from 01 February 2014, the statutory cash reserve requirement (CRR) on bank’s time and demand liabilities @6.00% on daily basis and @6.50% on Bi-weekly basis has been calculated and maintained with Bangladesh Bank (BB) in current account and @5.5% statutory liquidity ratio (SLR) on the same liabilities has also been maintained in the form of BD Govt. Islamic Bond including FC (Foreign Currency) balances with Bangladesh Bank used in BDT, Cash in vault and transit, balance with Sonali Bank as agent of BB, balance with Islamic Re�nance Fund A/C and daily excess reserve of CRR maintained on a Bi-weekly average requirement. Both the reserves are maintained by the Bank in excess of the statutory requirements, as shown below:

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2014 2013

Taka Taka

3.3 Cash Reserve Requirement (CRR): 6.00% of average Demand and Time LiabilitiesRequired Reserve 6,917,446,970 5,682,039,130

Actual Reserve held (in local currency) 10,612,711,221 6,534,206,261

Surplus 3,695,264,251 852,167,130

3.4 Statutory Liquidity Ratio (SLR): 5.5% of Average Demand and Time Liabilities for year 2014Required Reserve 5,853,224,360 10,890,575,000 Actual Reserve held (Note- 3.5)

10,148,276,401 14,394,752,593

Surplus 4,295,052,041 3,504,177,593

3.5 Held for Statutory Liquidity RatioCash in hand (Note- 3) 975,608,716 1,266,962,343

Balance with Bangladesh Bank and its agent banks (Note-3.1) - 7,627,790,250

Balance with Sonali Bnak as agent of BB (Note-3.1) 111,403,434 -

Excess reserve of CRR (Note-3.3) 3,695,264,251 -

Balance with Islamic Re�nance Fund (Note-6) 250,000,000 -

Bangladesh Govt. Islamic Bond (Note- 6.4) 5,116,000,000 5,500,000,000

10,148,276,401 14,394,752,593 4 Balance with Other Banks and Financial Institutions

(Other than Mudaraba Term Deposit) In Bangladesh (Note - 4.1) 2,511,309,841 1,870,113,449

Outside Bangladesh (Note- 4.2) 332,880,245 1,178,527,956

2,844,190,086 3,048,641,405 4(a) Consolidated balance of other Banks and Financial Institutions

In Bangladesh

Social Islami Bank Limited 2,511,309,841 1,870,113,449

Add: Account Balance of subsidiaries of SIBL with SIBL Principal Branch 269,936,542 262,304,982

SIBL Securities Limited (Current account and MTDR) 20,003,005 12,350,525

SIBL Investment Limited 249,933,537 249,954,457

2,781,246,383 2,132,418,431

Less: Inter company balance eliminated 269,936,542 262,304,982

SIBL Securities Limited (Current account and MTDR) 20,003,005 12,350,525

SIBL Investment Limited 249,933,537 249,954,457

Add: Account Balance of subsidiaries of SIBL with other banks and �nancial institutions

66,104,578 29,129,747

SIBL Securities Limited 66,104,578 29,129,747

SIBL Investment Limited - -

Consolidated balance with Banks and Financial Institutions 2,577,414,418 1,899,243,196

The balances are held with the ‘Principal Branch’ of SIBL bearing current account no: 0002-13300056882 and 0002-13300057058 respectively.

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2014 2013

Taka Taka

4.1 Inside Bangladesh

Current Account

Islami Bank Bangladesh Limited 577,644 620,568

Sonali Bank Limited 63,940,311 20,201,422

Rupali Bank Limited - 608

Brac Bank Limited (Remittance settlement Account) 14,796,987 5,470,364

Trust Bank Limited (ATM settlement Account) 4,576,982 4,805,052

Standard Chartered Bank (ATM settlement Account) 5,501,112 4,906,750

89,393,035 36,004,763

4.2 Mudaraba Short Notice Deposits

Al- Arafah Islami Bank Limited 816,664 829,409

ICB Islami Bank Limited 11,372 13,442

Shahjalal Islami Bank Limited 73,715,077 366,738,442

Prime Bank Limited (Islami Banking Branch) 6,659 7,004

United Commercial Bank Limited (Islami Banking Branch) - 348

Bank Asia Limited (Islami Banking Branch) 516,462 502,205

Islami Bank Bangladesh Limited 23,605,070 6,684,335

Jamuna Bank Limited (Islami Banking Branch) 111,159,831 30,037,506

Pubali Bank Limited (Islami Banking Branch) 42,942,754 75,522,077

Exim Bank Ltd. 10,000,000 -

Janata Bank Limited 8,790 10,940

262,782,678 480,345,708

4.3 Mudaraba Saving Deposit

Al- Arafah Islami Bank Limited 1,498,543,486 432,449,439

ICB Islami Bank Limited 80,849 82,004

Dhaka Bank Limited (Islami Banking Branch) 302,552,621 2,446,407

Dhaka Bank Limited (Local Of�ce) 106,163 102,786

AB Bank Limited (Islami Banking Branch) 202,449,146 1,614,888

Exim Bank Limited 16,276,783 24,581,248

Prime Bank Limited (Islami Banking Branch) 2,386,826 11,476,239


The City Bank Limited (Islami Banking Branch) 2,995,255 2,894,458

Southeast Bank Limited (Islami Banking Branch) 1,689,584 760,484,529

First Security Islami Bank Limited 8,477,172 8,102,995

2,159,134,128 1,353,762,977

Total 2,511,309,841 1,870,113,449

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4.4 Outside Bangladesh (NOSTRO Account)

Current Account with Currency F.C. Amount Rate Taka

1 Mashreque Bank, Mumbai ACUE 682.92 94.61 64,610

2 Mashreque Bank, Mumbai ACU 214.56 77.95 16,725

3 Mashreque Bank, New York USD 2,087,030.03 77.94 162,671,873

4 Standard Chartered Bank Limited, Mumbai ACU 769.95 77.95 60,018

5 Standard Chartered Bank Limited, Frankfurt EUR 922.49 94.61 87,275

6 Standard Chartered Bank Limited, London GBP 779.65 120.99 94,333

7 Standard Chartered Bank Limited,Tokyo JPY 77,483.00 0.64 49,846

8 Standard Chartered Bank Limited, New York USD 1,975,909.78 77.95 154,022,345

9 United National Bank of London GBP 54.59 120.99 6,605

10 Sonali Bank (UK) Limited USD 121,229.20 77.95 9,449,816

11 Sonali Bank (UK) Limited GBP 1,020.00 120.99 123,414

12 Sonali Bank (UK) Limited EUR 440.33 94.61 41,659

13 Sonali Bank, Kolkata ACU 886.08 77.95 69,070

14 United Bank of India, Kolkata ACU 1,436.02 77.95 111,938

15 Summit Bank Ltd., Karachi ACU 54,822.08 77.95 4,273,381

16 Nepal Bangladesh Bank Ltd.,Kathmandu ACU 10,741.36 77.95 837,289

17 AB Bank Ltd., Mumbai ACU 889.67 77.95 69,350

18 Habib Bank Ltd. Karachi ACU 472.79 77.95 36,854

19 Bank of Bhutan ACU 574.05 77.95 44,747

20 Commerz Bank Frankfurt EUR 469.76 94.61 44,443

21 Korea Exchange Bank, Seoul USD 6,373.24 77.95 496,794

22 Saudi Hallandi Bnak, Riyadh SAR 10,000.00 20.79 207,861

332,880,245

Currency wise Distribution: 2014 2013 2014 2013

Foreign Currency Composition Composition Taka Taka

USD/ACU 99.78% 99.83% 332,160,199 1,176,468,687

GBP 0.07% 0.06% 224,352 751,508

EUR 0.07% 0.06% 237,986 742,997

YEN 0.01% 0.05% 49,846 564,764

SAR 0.06% 0.00% 207,861 -

100% 100% 332,880,245 1,178,527,956

Please see ‘Annexure-C’ for details comparative statement of 2014 & 2013 of foreign currency amount and rate.

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4.5 Maturity-wise groupings of balance with otherBanks and Financial Institutions (Both in Bangladesh and outside Bangladesh)

On Demand 900,969,371 1,830,254,726

Not more than 3 months 971,610,357 609,193,340

Over 3 months but not more than 1 year 971,610,357 609,193,340

Over 1 year but not more than 5 years - -

More than 5 years - -

2,844,190,086 3,048,641,405

5 Placement with Banks & other Financial Institutions

Placement with Banks (Note-5.1) 6,974,249,214 5,524,879,564

Placement with other Financial Institutions (Note-5.2) 2,500,000,000 3,540,000,000

9,474,249,214 9,064,879,564

5.1 Mudaraba Term Deposits with Banks

ICB Islamic Bank Limited 224,249,214 224,879,564

Al-Arafah Islami Bank Limited 4,350,000,000 800,000,000

Dhaka Bank Limited (Islami Banking Branch) 300,000,000 400,000,000

Shahjalal Islami Bank Limited 200,000,000 1,700,000,000

Exim Bank Limited 500,000,000 1,000,000,000

First Security Islami Bank Limited - 1,000,000,000

The City Bank Limited (Islami Banking Branch) - 200,000,000

Premier Bank ltd. 1,400,000,000 -

Union Bank Limited - 200,000,000

6,974,249,214 5,524,879,564

5.2 Mudaraba Term Deposits with Other Financial Institutions

United Leasing Company Limited - 250,000,000

IIDFC 150,000,000 280,000,000

International Leasing Finance & Services Limited 400,000,000 400,000,000

Prime Finance & Investment Limited 650,000,000 750,000,000

IDLC Finance Limited 500,000,000 1,000,000,000

Union Capital Limited 600,000,000 450,000,000

Lanka Bangla Finance Limited - 100,000,000

Fareast Finance and Investment Limited 150,000,000 250,000,000

Hajj Finance Company Limited 50,000,000 60,000,000

2,500,000,000 3,540,000,000

5.3 Maturity-wise groupings of placement with

Banks and other Financial Institutions

On Demand 1,400,000,000 500,000,000

Not more than 3 months 3,600,000,000 3,350,000,000

More than 3 months but less than 1 year 4,250,000,000 5,214,879,564

More than 1 year but less than 5 years 224,249,214 -

More than 5 years - -

9,474,249,214 9,064,879,564

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Taka Taka6 Investment in Shares & Securities

Government

Government Bond (Islamic Investment Bond) (Note 6.1) 4,866,000,000 5,500,000,000

BD Government Islamic Re�nance Fund 250,000,000 -

5,116,000,000 5,500,000,000

OthersInvestment in Shares, Quoted (Note 6.2) 661,798,937 1,089,519,317

Investment in Shares, Unquoted (Note 6.3) 2,131,567,850 2,131,567,850

2,793,366,787 3,221,087,167

Fair value adjustment through pro�t or loss (FVTPL) (note: 6.5) (85,641,101) (182,903,697)

Value of Investment in Shares and securities, Others 2,707,725,686 3,038,183,470

Grand Total 7,823,725,686 8,538,183,470

Maturity-wise Grouping of Investment in Securities:

Upto one month 576,157,836 1,406,615,620

Not more than 3 months 783,000,000 700,000,000

Over 3 months but not more than 1 year 4,333,000,000 4,300,000,000

Over 1 year but not more than 5 years 501,569,450 501,569,450

More than 5 years 1,629,998,400 1,629,998,400

7,823,725,686 8,538,183,470

6(a) Consolidated Investment in Shares and SecuritiesSocial Islami Bank LimitedGovernment

Investment in Government Islamic Bond 4,866,000,000 5,500,000,000

4,866,000,000 5,500,000,000

Others sectors 2,707,725,686 3,038,183,470

Less: Intercompany balance eliminated

Investments in Subsidiaries 1,479,998,400 1,479,998,400

Investment in SIBL Securities Limited 1,229,999,000 1,229,999,000

Investment in SIBL Investment Limited 249,999,400 249,999,400

Consolidated Investment in others sectors 1,227,727,286 1,558,185,070

Total consolidated balance of Investment in shares and securities 6,093,727,286 7,058,185,070

6.1 Bangladesh Bank introduced a new type of investment opportunity solely for the purpose of Shariah Banks in the year 2005 being inheritent limitation on the part of Shariah Compliant Banks to take part in buying and selling of treasury bill etc as a very common form of treasury management. The fund has been operating under Mudaraba Principle and are being used as a part of SLR (Statutory Liquidity Requirement) vide Bangladesh Bank Circular Letter ref. no: AMA/AUSOBI/SANCHAY/S-03/2004/262 dated September 2, 2004.

The mobilized fund from Islamic Bond is invested by Bangladesh Bank and a portion of realized pro�t is distributed amongst the bond holders as per mudaraba principle of Islamic Shariah on the basis of the tenure of the bond. So, the rate of return from Islamic Bond is not pre�xed rather dependent on fund deployment by Bangladesh Bank.

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6.2 Investment (Cost) in Shares (Quoted)

ICB 1st Mutual Fund 8,982,800 12,155,000

ICB 2nd Mutual FundICB 3rd Mutual Fund

2,676,866 478,500

12,112,045 8,370,625

ICB 4th Mutual Fund 8,556,380 3,891,000




National Life Insurance Ist Mutual Fund 5,060,000 4,600,000

Popular Ist Mutual Fund 3,530,388 631,575

ICB Sonali Mutual Fund 1,871,346 852,326

MBL 1st Mutual Fund 6,740,208 651,074

AIBL 1st Mutual Fund 5,820,925 728,973

AB 1st Mutual Fund 2,411,309 739,845

AIMS Ist Mutual Fund 8,596,939 -

Al-Arafah Islami Bank Limited 49,432,524 50,201,255

AB Bank Limited 24,614,467 27,297,000

Exim Bank Limited 21,471,162 31,163,200

Bank Asia Limited 18,081,680 15,365,400

Dhaka Bank Limited 20,127,073 22,888,466

Titas Gas Limited 11,901,714 19,599,905

City Bank Limited 3,364,480 10,720,000

Beximco Limited 3,629,204 11,270,000

MJ Bangladesh Limited 1,502 9,564


Orion Pharma Limited 352,200,000 500,000,000

Square Pharmaceuticals 16,358,104 -

BEDL 3,543,839 -

IBBL Mudaraba perpetual bond - 297,626,450

661,798,937 1,089,519,317

6.3 Investment (Cost) in Shares (Unquoted)

CDBL Share 1,569,450 1,569,450

Belhasha Accom JV Limited 500,000,000 500,000,000

Investment in subsidiary: SIBL Securities Limited 1,229,999,000 1,229,999,000

Investment in subsidiary: SIBL Investment Limited 249,999,400 249,999,400

FSIBL Mudaraba Subordinate Bond 150,000,000 150,000,000

2,131,567,850 2,131,567,850

Investment in Subsidiaries represents the amount invested in ‘SIBL Securities Limited’ and ‘SIBL Investment Limited’ that were incorporated on 20 July 2010 and 30 August 2010 respectively vide certi�cate of incorporation no: C-85876/10 and C-86726/10. SIBL holds 12,299,990 and 2,499,994 nos. shares of ‘SIBL Securities Limited’ and ‘SIBL Investment Limited’ respectively with a face value of Tk. 100 each and also representing holding of 99.99% shares in both the subsidiaries.

6.4 Government Bond (BD Govt. Islamic Bond) 4,866,000,000 5,500,000,000

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6.5 Details of Shares & Securities in quoted and unquoted other than in subsidiaries 2014Taka

ParticularsNo. of Shares/

SecuritiesMarket price per Shares

Fair value/ Market value as on 31-12-2014

Cost price as on

31-12-2014

Fair value adjustment

Quoted Shares

ICB 1st Mutual Fund 10,568 1,116.20 11,796,002 8,982,800 2,813,202

ICB 2nd Mutual Fund 9,710 282.00 2,738,220 2,676,866 61,354

ICB 3rd Mutual Fund 62,500 235.00 14,687,500 12,112,045 2,575,455

ICB 4th Mutual Fund 43,300 220.00 9,526,000 8,556,380 969,620

ICB 5th Mutual Fund 21,900 192.70 4,220,130 3,665,577 554,553

ICB 7th Mutual Fund 183,310 93.20 17,084,492 15,847,615 1,236,877

ICB 8th Mutual Fund 317,660 65.80 20,902,028 17,735,692 3,166,336

National Life Insurance Ist Mutual Fund 550,000 8.00 4,400,000 5,060,000 (660,000)

Popular Ist Mutual Fund 650,000 5.00 3,250,000 3,530,388 (280,388)

ICB Sonali Mutual Fund 215,500 6.40 1,379,200 1,871,346 (492,146)

MBL 1st Mutual Fund 1,000,000 4.50 4,500,000 6,740,208 (2,240,208)

AIBL 1st Mutual Fund 750,000 4.50 3,375,000 5,820,925 (2,445,925)

AB 1st Mutual Fund 350,000 6.30 2,205,000 2,411,309 (206,309)

AIMS Ist Mutual Fund 315,500 28.70 9,054,850 8,596,939 457,911

Al-Arafah Islami Bank Limited 2,949,465 14.90 43,947,029 49,432,524 (5,485,496)

AB Bank Limited 1,000,387 29.90 29,911,571 24,614,467 5,297,104

Exim Bank Limited 1,849,058 11.10 20,524,544 21,471,162 (946,618)

Bank Asia Limited 864,776 16.70 14,441,759 18,081,680 (3,639,921)

Dhaka Bank Limited 1,124,118 18.30 20,571,359 20,127,073 444,286

Titas Gas Limited 150,000 79.70 11,955,000 11,901,714 53,286

City Bank Limited 200,000 21.80 4,360,000 3,364,480 995,520

Beximco Limited 100,000 36.40 3,640,000 3,629,204 10,796

MJ Bangladesh Limited 20 125.60 2,512 1,502 1,010

Shahjalal Islami Bank Limited 2,255,900 11.50 25,942,850 33,465,098 (7,522,248)

Orion Pharma Limited 6,000,000 45.50 273,000,000 352,200,000 (79,200,000)

Square Pharmaceuticals 59,740 258.50 15,442,790 16,358,104 (915,314)

BEDL 100,000 33.00 3,300,000 3,543,839 (243,839)

576,157,836 661,798,937 (85,641,101)

Preference Shares

Belhasha Accom JV Limited 50,000,000 - 500,000,000 500,000,000 -

500,000,000 500,000,000 -

Unqoted Shares/ Bond

CDBL Share 456,945 - 1,569,450 1,569,450 -

FSIBL Mudaraba Subordinate Bond 300 - 150,000,000 150,000,000 -

151,569,450 151,569,450 -

Grand Total 1,227,727,286 1,313,368,387 (85,641,101)

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6.6 Industry wise classi�cation of shares at market priceQuoated sharesBanks 159,699,112 167,793,231

Mutual Funds 109,118,422 66,887,327

Others 307,340,302 380,829,262

576,157,836 615,509,820

6.7 Cost of shares and securities under the head quoted and unquoated other than investment in subsidiaries

1,313,368,387 1,741,088,767

Fair value adjustment {Pro�t/(Loss)} to be made through pro�t and loss account (85,641,101) (182,903,697)

Value of shares and securites, Quoted and Unquoted other than investment in subsidiaries

1,227,727,286 1,558,185,070

Investments in Shares and Securities’ other than investments in subsidiaries under the category ‘Financial Assets at fair value through pro�t or loss (FVTPL)’ has been recognised at fair value and the unrealized pro�t or loss i.e. difference between fair value and cost has been charged to pro�t and loss account and value of the investment has been reduced by the same amount as per requirements of Bangladesh Accounting Standard (BAS)-39, Financial Instruments: Recognition and Measurement.

7 InvestmentsIn BangladeshGeneral Investments etc. (Note-7.1) 98,611,135,398 76,398,581,962

Bills purchased and discounted-net (Note- 7.2) 2,319,330,402 4,539,818,951

Outside BangladeshBills purchased and discounted-net (Note- 7.2) 6,969,493,511 4,983,931,013

107,899,959,311 85,922,331,926

7 (a) Consolidated Investment General Investments etc. 98,611,135,398 76,398,581,962

Less: Intercompany balance eliminated

SIBL Securities Limited Quard Investment with SIBL- Principal branch 100,000,000 50,000,000


Total consolidated general investment 98,511,135,398 76,348,581,962

Bills purchased and discounted-net 9,288,823,913 9,523,749,964

Grand total 107,799,959,311 85,872,331,926

Maturity wise Classi�cation of Investments:With a residual maturity of

Re-payable on Demand 16,424,997,367 4,242,313,145

Not more than 3 months 21,338,185,570 26,475,590,655

Over 3 months but not more than 1 year 49,631,419,174 39,240,356,958

Over 1 year but not more than 5 years 19,089,270,600 15,592,813,699

Over 5 years 1,416,086,600 371,257,469

107,899,959,311 85,922,331,926

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7.1 Mode-Wise Investment (General)a) In BangladeshMusharaka 555,784,979 580,258,358

Murabaha 4,325,876,989 3,090,245,590

Mudaraba 4,205,360,326 2,147,088,153

Bai-Muazzal 63,555,624,941 49,304,237,348

Hire-Purchase Sirkatul Meelk 17,143,936,768 12,069,609,964

Installment Investment Scheme 120,522 195,154

Quard 7,216,017,663 7,895,556,887

Bai-Salam 60,327,179 38,043,913

Staff Loan 1,248,944,173 944,293,881

Ijarah 118,070,066 180,063,656

Visa Card 181,071,793 148,989,056

98,611,135,398 76,398,581,962 Mode-Wise Investment (General)b) Outside BangladeshMusharaka - - Murabaha Bai-Muazzal

- - - -

Hire-Purchase Sirkatul Meelk - - Installment Investment Scheme - - Quard - - Bai-Salam - - Others - -

- - 7.2 Bills Purchased and discounted

Inside BangladeshIn land Bill Purchase 2,319,330,402 4,539,818,951

Bills Purchased and discounted Outside BangladeshForeign Bill Purchased 137,048,093 113,086,049

Murabaha Bill of Exchange 1,000,953,457 1,062,509,738

Murabaha Wes Bills L/C 1,659,498,781 1,712,491,073

Baim-Wes bills 4,171,993,181 2,095,844,154

6,969,493,511 4,983,931,013

Grand total of net Bills Purchased and Discounted 9,288,823,913 9,523,749,964

7.2.1 Bills Purchased and Discounted Payable inside Bangladesh 2,319,330,402 4,539,818,951

Payable outside Bangladesh 7,445,084,353 5,356,860,965

Gross Bills Purchased and Discounted 9,764,414,755 9,896,679,915

Less: Pro�t receivable on Bills Purchased and Discounted 475,590,842 372,929,951

Net Bills Purchased and Discounted 9,288,823,913 9,523,749,964

Maturity wise Classi�cation of Bills Purchased and Discounted:On demand 2,043,541,261 2,095,224,992

Over 1 month but less than 3 months 4,458,635,478 4,571,399,983

Over 3 months but less than 1 year 2,786,647,174 2,857,124,989 1 year or more - -

9,288,823,913 9,523,749,964

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7.3 Investments on the basis of signi�cant concentration 2014 2013

Investments to allied concern of Directors 0.17% 0.000% 183,691,088 1,418,206

Investments to Executives & Staffs 1.32% 1.31% 1,423,802,620 1,128,178,199

Investments to Customer Groups 59.21% 63.05% 63,885,165,603 54,169,735,521

Industrial Investment 39.30% 35.64% 42,407,300,000 30,623,000,000

Others 0.00% 0.00% - -

100.00% 100.00% 107,899,959,311 85,922,331,926

Investments allowed to individual customer exceeding 15% of Bank’s total capital:

Number of Client with amount of outstanding Investment to whom Investments sanctioned exceeds 15% of total capital of the bank is reported hereunder. Total capital of the Bank was Tk. 1,307.83 Crore as on 31.12.2014 and was used as base �gure to calculate the single party exposure limit-funded liability; and such limit was �xed at Tk. 196.17 crore (1,307.83 crore x 15% ) till 31.12.2014. It is mentioned here that as per Bank Companies Act, 1991, single party exposure limit has been �xed at 15% for funded and 20% non-funded investment based on capital maintained for non export oriented clients whereas 15% funded and 35% non-fundend limit for 100% export oriented clients.

Total outstanding amount to such customers at end of the year (Funded) Nil Nil

Number of such types of customers Nil Nil

Amount of Classi�ed Investments thereon Nil Nil

Measures taken for recovery Not applicable Not applicable

Details information of Investment more than 10% of Bank’s total capital

(Figure in Crore Taka)

Sl no.

Name of client

Outstanding as on 31 December 2014

Outstanding as on 31 December 2013

Total (Funded and Non funded)

Total (Funded and Non funded)

1 M/s. Panama Composite Textile Mills Ltd 0.00 218.32

2 Dong Bang Textile Limited 267.42 247.94

3 Mars Textile Limited 227.39 194.67

4 Thermax Textile Mills Ltd. 0.00 184.87

5 Bashundhara Group 0.00 146.49

6 Dong Bang Dyeing Limited 216.17 144.23

7 Badsha Textile 222.28 0.00

8 Nitol Motors 127.64 0.00

9 Rabiul Islam, M/s Rhythm Trading, AR Center 131.23 119.86

10 Bashundhara Group 176.33 0.00

11 M/s. Western Dresses Ltd. 0.00 113.60

12 M/s Abdul Monem Ltd. 160.90 109.69

13 M/s. Mabiya Ship Breakers 0.00 124.40

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7.4 Customer group and industry wise classi�cation of Investment

Sector2014 2013


Commercial lending 23,018,210,611 21.33% 23,058,648,740 26.84%

Export Financing 771,531,436 0.72% 4,850,941,148 5.65%

House Building Investment 3,765,382,536 3.49% 2,596,711,263 3.02%

Consumer Investment Scheme 3,206,915,598 2.97% 1,635,570,074 1.90%

Small and Medium Enterprises 19,401,951,177 17.98% 8,242,397,820 9.59%

Micro Investment 20,962,221 0.02% 19,270,951 0.02%

Other Investments 9,494,851,697 8.80% 11,619,107,372 13.52%

Off-shore Banking Unit 4,205,360,326 3.90% 2,147,088,153 2.50%

Allied concern of Directors of SIBL 183,691,088 0.17% 1,418,206 0.00%

Executives & Staffs of SIBL 1,423,802,620 1.32% 1,128,178,199 1.31%

Agricultural Industries 1,538,345,714 1.43% 922,802,251 1.07%

Textile Industries 15,047,898,150 13.95% 14,194,788,660 16.52%

Food & Allied Industries 1,936,332,708 1.79% 1,601,338,497 1.86%

Pharmaceutical Industries 533,024,978 0.49% 109,194,225 0.13%

Leather, Chemical, Cosmetic etc. 761,265,347 0.71% 222,025,782 0.26%

Construction Industries 3,018,310,795 2.80% 3,428,418,033 3.99%

Cement and Ceramic Industries 1,166,464,306 1.08% 632,300,562 0.74%

Service Industries 1,675,842,414 1.55% 755,306,656 0.88%

Transport and Communication Industries 1,668,068,288 1.55% 592,802,760 0.69%

Other Industries 15,061,747,301 13.96% 8,164,022,574 9.50%

Total 107,899,959,311 100.00% 85,922,331,926 100.00%

7.5 Geographical Location-wise Investments

DivisionAs at 31 December 2014 As at 31 December 2013


Dhaka 77,635,272,931 71.95% 60,489,650,493 70.40%

Chittagong 21,487,165,173 19.91% 18,658,533,752 21.72%

Sylhet 367,948,779 0.34% 2,525,946,943 2.94%

Rajshahi 3,987,097,139 3.70% 230,352,123 0.27%

Khulna 3,341,097,621 3.10% 3,262,619,829 3.80%

Rangpur 834,834,230 0.77% 537,888,858 0.63%

Barisal 246,543,438 0.23% 217,339,928 0.253%

Total 107,899,959,311 100.00% 85,922,331,926 100.00%

(amount in Taka)

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7.6 Investments (Classi�cation wise)

Unclassi�ed

Standard 101,498,910,401 79,753,250,407

Special Mentioned Account 35,460,659 429,711,876

Classi�ed

Substandard 308,577,000 122,872,000

Doubtful 1,793,860,000 859,562,790

Bad or Loss 2,818,386,409 3,610,895,840

106,455,194,469 84,776,292,913

Standard (short term agri / micro credit) 20,216,630 17,860,814

Substandard (short term agri / micro credit) - -

Doubtful (short term agri / micro credit) - -

Bad or Loss (short term agri/micro credit) 745,591 -

20,962,221 17,860,814

Staff lnvestment 1,423,802,621 1,128,178,199

107,899,959,311 85,922,331,926

7.7 Particulars of provision required for general investment

Unclassi�ed (Excluding Off-balance sheet exposures) 1,139,100,364 775,629,589

Classi�ed 1,578,585,257 1,692,052,956

Unclassi�ed- Off-balance sheet exposures 321,618,591 304,702,298

3,039,304,212 2,772,384,842

7.7.1 Detail Particulars of Provision for Investment

RateBase for Provision

Provision Required

2014 2013

Unclassi�edStandard 1% 82,186,489,912 1,067,992,219 711,433,488

Staff Investment 0% - - -

Consumer Finance (Other than HF and LP) 5% 219,099,060 10,954,953 9,766,727

Small and Medium Enterprise 0.25% 19,153,262,668 47,883,157 20,406,282

Housing Finance (HF) 2% 574,703,978 11,494,080 28,008,690

Loan for Professionals (LP) 2% - - 88,062

Share 2% 100,000,000 2,000,000 1,000,000

SMA Investment 5% 5,410,807 270,540 5,033,299

Unclassi�ed Off Balance Sheet Items 1% 32,161,859,070 321,618,591 304,702,298

Classi�ed

Substandard 20% 125,883,916 25,176,783 4,618,640

Doubtful 50% 1,134,292,547 567,146,273 171,822,048

Bad or Loss 100% 986,262,200 986,262,200 1,515,612,268

3,040,798,796 2,772,491,802

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RateBase for Provision

Provision Required

2014 2013

Taka Taka

Provision Required (Short term Agricultural & Micro Credit)Unclassi�edStandard (short term agri /micro credit) 3% 20,216,630 505,416 893,041

Classi�ed

Substandard (short term agri /micro credit) 5% - -

Doubtful (short term agri /micro credit) 5% - -

Bad or Loss (Short term agri /micro credit) 100% - -

505,416 893,041

Required provision for Investments 3,041,304,212 2,773,384,842

Total provision maintained 3,041,304,212 2,773,384,842

Provision Surplus/(Shortfall) - -

2014 2013

Taka Taka

Provision Made for funded exposures only: (Other than Short term Agricultural & Micro Credit)Unclassi�edStandard 1,461,942,999 1,075,405,547

SMA 270,540 5,033,299

Classi�ed

Substandard 25,176,783 4,618,640

Doubtful 567,146,273 171,822,048

Bad or Loss 986,262,200 1,515,612,268

3,040,798,796 2,772,491,802

Provision Made: (Short term Agricultural & Micro Credit)Standard (short term agri credit) 505,416 893,041

Substandard (short term agri credit) - -

Doubtful (short term agri credit) - -

Bad or Loss (Short term agri credit) - -

505,416 893,041

Grand Total 3,041,304,212 2,773,384,842

Required provision - Provision made = Surplus/ (Shortfall) - -

7.7.2 Particulars of provision for Off-Balance Sheet items

RateBasis forProvisionStatus

Off-Balance Sheet Items 1% 32,161,854,799 321,618,548 304,702,298

Required provision for Investments 321,618,548 304,702,298

Provision maintained {note # 12.2 (c)} 321,618,591 304,702,298

Surplus Provision - -

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7.8 Particulars of Investments:

(i) Investment considered good in respect of which the banking company is fully secured

92,152,825,666 74,619,694,332

(ii) Investment considered good for which the banking company holds no other security other than the debtor’s personal security 12,048,477,522 8,977,966,781

(iii) Investment considered good and secured by personal security of one or more parties in addition to the personal security of the debtors 3,698,656,123 2,324,670,813

(iv) Investment considered bad or doubtful not provided for - - Total 107,899,959,311 85,922,331,926

(v) Investment due by directors or of�cers of the banking company or any of them either severally or jointly with any other person 1,607,493,708 1,129,596,405

(vi) Investment due by companies or �rms in which the directors of the banking company are interested as directors, partners or managing agents or, in the case of private companies as members. 184,878,088 2,605,206

(vii) Maximum total amount of investments, including temporary investments made at any time during the period to directors or managers or of�cers of the banking company or any of them either severally or jointly with any other persons. 12,453,451 8,742,850

(viii) Maximum total amount of Investments including temporary Investment granted during the period to the companies or �rms in which the directors of the banking company are interested as directors, partners or managing agents or in the case of private companies as members Nil Nil

(ix) Investment due from other Banks Nil Nil

(x) Classi�ed Investment on which pro�t has not been charged 4,921,569,000 4,593,330,630 (xi) Particulars of written off investments

a) Cumulative amount of written off Investments since inception to 31 December last year

2,338,208,027 2,307,438,210

b) Amount of written off / waiver of Investment during the year 602,178,155 30,769,817 Total amount of written off (a+b) 2,940,386,182 2,338,208,027

c) Amount recovered against debts which are previously written off (cumulative balance)

161,705,000 121,505,000

d) Amount of Investments written off against which cases have been �led for recovery

2,940,386,182 2,338,208,027

xii) Amount of compensation suspense as at year end. 751,102,267 461,185,089

8 Fixed Assets including Premises, Furnitures and Fixtures (Including Intangible Assets)

A. Cost

Land 12,330,000 12,330,000

Building 1,965,245,776 1,934,025,740

Furniture & Fixtures 557,746,161 511,734,383

Of�ce Equipment 690,457,603 665,395,572

Software 84,878,493 28,110,992

Vehicles 83,919,160 63,560,310

Books 1,146,288 1,136,879

3,395,723,481 3,216,293,875

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B. Accumulated DepreciationLand - - Building 148,371,149 102,566,469

Furniture & Fixtures 172,072,114 132,282,995

Of�ce Equipment 342,402,310 262,354,617

Software 5,105,621 23,358,418

Vehicles 51,198,868 41,184,644

Books 714,622 664,351

719,864,685 562,411,494

Carrying value 2,675,858,796 2,653,882,382

8.1 Intangible assetsCore banking solution ‘ABABIL’ is used in SIBL which was incorporated in the year 2010. The value of all the softwares under the head ‘Intangible Assets’ is Taka-84,878,493 and being amortized @ 20% following the same method of reducing balancing method as applied for �xed assets. Written down value of the software as on 31.12.2014 is Taka -79,772,872.

For details please refer to Annexure-A

8(a) Consolidated written down value of Fixed Assets including intangible assets

Social Islami Bank Ltd. 2,675,858,796 2,653,882,382

Fixed assets of subsidiaries 7,832,753 8,777,961

SIBL Securities Ltd. 7,832,753 8,777,961

SIBL Investment Ltd. - -

Carrying value of Fixed assets of the Group 2,683,691,549 2,662,660,343

9 Others AssetsStock of stationery, stamps and printing materials etc. (valued at cost) 16,079,558 15,766,865

Advance rent and advertisement 138,546,785 138,411,134

Security Deposit 2,764,052 2,878,447

Branch Adjustments (SIBG) (Note: 9.1) 3,700,341,995 2,566,384,734

Suspense Accounts (Note: 9.2) 316,415,620 122,540,111

Capitalized Expenditure - 33,569

Other Repayments 314,840 183,008

Receivable from M/S. Stock & Bond and SIBL Securities Ltd. 19,171,583 17,976,725

Advance Income Tax 4,539,901,596 3,743,882,093

Receivable from SIBL Securities Limited 5,516,584 5,516,584

Receivable from SIBL Investment Limited 1,622,805 1,522,805

Protested Bills against Investment 357,148,000 368,594,750

Pro�t Receivable from Banks, NBFI and BD Govt. 354,627,390 372,918,333

Investment with Off-shore Banking Unit 4,205,358,767 2,147,095,928

Due from Off-shore Banking Unit 111,952,594 3,605,388

Others (Note: 9.3) 1,334,396,796 1,137,284,247

15,104,158,964 10,644,594,721

Less: Balance with OBU for elimination Investment with Off-shore Banking Unit 4,205,358,767 2,147,095,928

Due from Off-shore Banking Unit - 3,605,388

Grand total after elimination of balance with OBU 10,898,800,197 8,493,893,405

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9(a) Consolidated other Assets


Add: Other assets of subsidiary companies

SIBL Securities Limited 1,360,348,168 1,283,707,625 Membership of Chittagong Stock Exchange 307,000,000 307,000,000 Membership of Dhaka Stock Exchange 720,650,000 720,650,000 Advance Income Tax 12,100,258 7,006,293 Advance Of�ce Rent - 1,162,993 Advance for �oor space at nikunjo, DSE Tower 850,000 850,000 Investment in stock dealer activities 15,547,286 13,157,091 Receivable from Regulators 252,362 30,732,610 Receivable from client 279,019,390 186,408,076 Receivable from others 20,585,533 7,397,224 Security Deposit to CDBL, DSE 200,000 5,200,000 Security Deposit to BTCL 4,000 4,000 Others 4,139,339 4,139,339


Less: Inter Company transactions eliminated: 7,139,389 7,039,389 Receivable from SIBL Securities Limited 5,516,584 5,516,584 Receivable from SIBL Investment Limited 1,622,805 1,522,805

12,252,008,976 9,770,561,641

9.1 The balance of Branch adjustment (SIBG) represents unresponded Inter branch and head of�ce transactions at balance sheet date. The balance of Debit and Credit unrespondent entries as on 28 February 2015 were Taka-862,711,205. Details of which are as follows:

Number of Amount (in Tk) of

Unrespondent entries Unrespondent entries

2014 2013 2014 2013Upto 3 months 73 126 660,956,886 2,283,772,577 Over 3 months but within 6 months 22 25 189,960,808 282,612,157 Over 6 months but within 9 months 1 - 11,793,511 - Over 9 months - - - -

96 151 862,711,205 2,566,384,734

9.2 Suspense Account represents advance against TA/DA, Entertainment Expenses, Advertisement Expenses, Branch Decoration Expenses, Legal Charges and suspense -others. Necessary provision on others assets has been made in the accounts according to the BRPD Circular no: 14 dated June 25, 2001 para Kha (1) & (2).

9.3 OthersClearing Adjustment (Note: 9.3.1) - 3,000,000 DD paid without Advice - 13,000 Wes fund purchased 1,089 1,134 Adjusting A/c debit balance (Note: 9.3.2) 341,831,875 359,721,110 Advance VAT paid 3,815,178 3,815,178 BEFTN adjustment A/c (298,400) - Balance with Principal Branch (PF) 646,881,387 506,934,651 Balance with Principal Branch (SIBL/ Social Insurance) 60,588,442 47,638,442 Balance with Principal Branch (SIBL/ Gratuity Fund) 281,577,225 216,160,732

1,334,396,796 1,137,284,247

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2014 2013Taka Taka

9.3.1 Clearing Adjustment Return clearing advices on 31.12.2014 from the Clearing House Representing Branch (Principal Branch) were sent to different branches, lying un-adjusted on the same date.

9.3.2 Adjusting A/c debit balance 341,831,875 359,721,110

Adjusting account debit balance represents Income Receivable from Bangladesh Govt. Islamic Bond on Tk. 511.60 crore, MTDR’s with Other Banks as on 31.12.2014 and pro�t from preference shares etc.

10 Placement from Banks & Other Financial InstitutionsBangladesh Govt. Islamic Bond. 6,150,000,000 4,700,000,000

The Bank has an outstanding balance of borrowing Tk. 615.00 crore as on 31.12.2014 taken from Bangladesh Govt. Islamic Bond Fund having different maturity dates. Pro�t rate of such borrowings is determined under Mudaraba Principle. Term Deposit Receipts allowed favouring different Banks and Financial Institutions for Tk 615.00 crore have been pledged as security to Bangladesh Bank against the borrowings.

Maturity Grouping of BorrowingsUp to 1 month 1,150,000,000 800,000,000

More than 1 month but less than 3 months 2,300,000,000 2,000,000,000

More than 3 months but less than 6 months 2,700,000,000 1,900,000,000

6 months and above - -

6,150,000,000 4,700,000,000

11 Deposits and Other Accounts

Mudaraba Savings Deposits (MSD) 9,818,279,970 6,468,729,754

Mudaraba Term Deposits (MTDR) 75,356,410,289 62,746,867,195

Other Mudaraba Deposit 23,923,887,375 19,288,768,828

Mudaraba Short Notice Deposits (MSND) 4,349,230,575 3,909,715,577

Mudaraba Scheme Deposits (Note-11.1) 19,574,656,800 15,379,053,251

Al- Wadeeah Current Deposit and other aacounts (AWCD) (Note- 11.2) 13,059,516,630 12,198,626,163

Bills payable (Note-11.3) 2,277,639,901 1,316,909,958

Cash Waqf Fund 99,275,350 84,577,685

124,535,009,515 102,104,479,583

11.1 Mudaraba Scheme Deposits

Mudaraba Hajj Savings Deposit 34,448,453 23,663,269 Mudaraba Pension Savings Deposit 3,184,278,278 3,161,444,037 Mudaraba Education Deposit 41,925,172 44,066,037 Mudaraba Monthly Savings Deposit 135,863,264 147,237,136 Mudaraba Monthly Pro�t Deposit 1,664,329,961 1,444,736,357 Mudaraba Bashansthan Savings Deposit 497,795,735 436,116,509 Mudaraba Millionaire Savings Deposit 517,555,826 365,599,621 Mudaraba Lakhopoti Deposit Scheme 318,398,550 329,073,668 Mudaraba Double Bene�t Deposit 2,235,392,969 1,917,537,282 Mudaraba Marriage Savings Deposit 146,856,004 138,383,698 Mudaraba Moharana Savings Deposit 23,481,943 17,153,078 Subarnalata Special Deposit (Women) 51,243,063 48,020,989

Balance carried forward 8,851,569,218 8,073,031,682

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11.2 Al-Wadeeah Current Deposit & other A/cAl Wadeeah current deposit 5,190,359,075 4,314,149,081 Sundry deposit 2,077,926,397 2,962,594,046 Social fund deposit 23,575 23,575 Supervision charge 940,113 1,337,282 Risk fund deposit 586,667 1,213,027 FC deposit 2,687,071,901 1,257,602,337 Convertible Taka A/c* 23,346,591 10,280,348 F. C. held against B.B. L/C 1,626,511,057 1,816,128,979 Pro�t payable A/c 1,427,811,861 1,791,429,921 Compensation Realized 24,939,392 43,867,567

13,059,516,630 12,198,626,163 *Balance of convertible Taka A/c represents the portion of unsettled balance.

11.2(a) Consolidated balance of Al-Wadeeah Current Deposit & Other A/cSocial Islami Bank Limited 13,059,516,630 12,198,626,163 Less: Intercompany balance eliminated 269,936,542 262,304,982 SIBL Securities Limited 20,003,005 12,350,525 SIBL Investment Limited 249,933,537 249,954,457 Consolidated balance of Current deposit and other accounts 12,789,580,088 11,936,321,181

The balances are held with the ‘Principal Branch’ of SIBL bearing current account no: 0002-13300056882 and 0002-13300057058 respectively. For consolidation purpose the balances have been eliminated.

11.3 Bills PayablePayment Order (PO) 889,177,839 636,531,686 Demand Draft (DD) 4,465,970 8,967,745 B/P awaiting remittance 1,383,996,092 671,410,527

2,277,639,901 1,316,909,958 11.4 Maturity wise classifcation of Deposits

Payable on demand 3,741,062,897 3,097,234,628 Up to 1 month 16,294,555,395 12,869,269,317 More than 1 month but up to 6 months 36,784,908,405 33,879,228,129 More than 6 months but up to 1 year 41,086,497,688 35,246,555,474 More than 1 year but up to 5 years 19,541,970,826 12,752,119,641 More than 5 years but up to 10 years 7,086,014,305 4,260,072,393

124,535,009,515 102,104,479,583

2014 2013

Taka Taka

Balance brought forward 8,851,569,218 8,073,031,682

Subarnalata Rekha Special Deposit (Women) 741,600,378 498,360,868

Sabuj Chayanna Special Deposit 420,538,408 321,613,172

Sabuj Chaya Pension Deposit 199,398,105 190,604,769

Sanchita Special Deposit 151,722,117 92,754,352

Shonali Din Pension Deposit 2,821,681,493 1,239,935,022

Shukher Thikana Savings Deposit 5,072,288 2,653,759

Sachchandey Protidin Monthly Pro�t Deposit 1,768,890,759 1,248,024,244

Shamriddhir Shopan Deposit 4,255,473,640 3,532,415,441

Shopner Shiri Deposit 134,296,894 89,770,060

Sharner Shikhar 224,367,157 89,364,691

Proshanti (Mudaraba Zakat savings scheme) 46,343 525,192

19,574,656,800 15,379,053,251

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12 Other LiabilitiesAdjusting A/C (Cr.) Balance 8,259,359 7,966,080 Other Payable 888,004 2,261,025 SIBL Employees’ PF 646,881,387 506,934,651 SIBL Employees’ Gratuity fund (note: 12.1) 364,291,832 294,261,830 SIBL Employees’ Social Insurance 60,588,442 47,638,442 BEFTN Adjustment Account 9,160,769 25,731,488 ATM Settlement for Q-Cash 14,890,811 9,697,144 Provision for Investments ( note: 12.2) 3,041,304,212 2,773,384,842 Provision for other Assets (note: 12.3) 386,655,792 393,102,542 Compensation and Rent Suspense (note: 12.4) 751,102,267 461,185,089 Provision for Taxation (note: 12.5) 5,546,544,564 4,146,098,405 Zakat Fund (note: 12.6) 63,582,948 48,818,029 Mudaraba Pro�t Distribution (note: 12.7) 10,000,000 10,000,000

10,904,150,387 8,727,079,569 12(a) Consolidated Other Liabilities


Add: Other Liabilities of subsidiariesSIBL Securities Limited 188,138,499 93,095,026 Payable to SIBL-Term loan 100,000,000 50,000,000 Pro�t payable to SIBL - 1,222,221 Payable to regulators 4,816,476 458,997 Payable to clients 41,178,013 31,275,155 Other provisions 19,269,896 7,611,683 Provision for Income Tax 22,874,115 2,526,970

SIBL Investment Limited 35,750 22,250 Accrued Expenses 30,750 17,250 Provision for Income Tax 5,000 5,000

11,092,324,637 8,820,196,845

2014 2013

Taka Taka

11.5 Segregation of deposits & other accountsi) Client DepositAl-Wadeeah Current deposit & other accounts 13,059,516,630 12,198,626,163 Bills Payable 2,277,639,901 1,316,909,958 Mudaraba Savings Deposits 7,229,629,752 5,468,327,093 Mudaraba Short Notice Deposits 4,343,506,270 3,903,958,691 Mudaraba Term Deposit 62,456,410,289 57,633,367,195 Mudaraba Scheme Deposits 19,574,656,800 15,379,053,251 Cash Waqf Fund 99,275,350 84,577,685

109,040,634,993 95,984,820,034 ii) Bank DepositMudaraba Term Deposit Receipt (MTDR) 12,900,000,000 5,113,500,000 Mudaraba Short Notice Deposit (MSND) 5,724,304 5,756,886 Mudaraba Savings Deposit (MSD) 2,588,650,217 1,000,402,662

15,494,374,522 6,119,659,548 Grand Total of deposits and other accounts 124,535,009,515 102,104,479,583

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Less: Intercompany balance eliminatedSIBL Securities LimitedPayable to SIBL-Term loan 100,000,000 50,000,000

Grand total 10,992,324,637 8,770,196,845

12.1 SIBL Employees’ Gratuity fund 281,577,225 216,160,732Opening balance 78,101,099 54,240,928Current year required expenditure for gratuity fund 82,483,635 75,916,493 Add: Pro�t charged and other transfers made during the year - 2,907,478

160,584,734 133,064,899 Less: Paid during the year to the employees (12,453,633) (5,935,800)Add: Transferred from gratuity fund during the year 10,500,000 - Less: Transferred to gratuity fund during the year (75,916,493) (49,028,000)

82,714,607 78,101,099

Grand total of gratuity fund balance 364,291,832 294,261,830

12.2 Provision for Investments

(a) Speci�c Provision on InvestmentsProvision held at the beginning of the year 1,692,052,956 970,134,819

Fully provided Investment written off (465,600,131) (30,769,817)Transferred from doubtful income/compensation realized 70,387,437 - Transferred from provision for protested bills 11,375,250 -

Provision made and charged in P/L a/c during this year 270,369,745 752,687,954

Provision held at the end of the year 1,578,585,257 1,692,052,956

(b) General Provision on Investments

Provision held at the beginning of the year 776,629,589 691,883,062

Addition during the year 364,470,776 84,746,527

Balance at the end of the year 1,141,100,364 776,629,589

Total Provision on Investments 2,719,685,621 2,468,682,545

(c) General Provision on Off-Balance Sheet itemsProvision held at the beginning of the year 304,702,298 277,644,499


Balance at the end of the year 321,618,591 304,702,298

Total Provision for Investments & Off-Balance Sheet items (a+b+c) 3,041,304,212 2,773,384,842

12.3 Provision for other Assets


Provision written back during the year (11,446,750) (6,364,250)


Balance at the end of the year 386,655,792 393,102,542

12.3.1 Provision for protested billsProvision held at the beginning of the year 368,594,750 374,959,000

Provision written back during the year (11,375,250) (6,186,250)

Waiver/written off during the year (71,500) (178,000)

357,148,000 368,594,750

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12.4 Compensation & Rent Suspense A/C

Compensation Receivable A/C

Murabaha (General) 31,949,647 26,747,246 Murabaha (Post Import) 3,109,172 4,923,207 Musharaka (Preshipment) 3,769,984 1,533,094 Bai-Muazzal 91,069,420 59,266,797 Bai-Muazzal Trust Receipt 33,809,317 26,024,166 Baim Wes bills 18,600,131 2,103,689 Bai-Muazzal (ME) 16,832,877 6,129,156

199,140,549 126,727,354

Compensation Suspense A/C

Murabaha (General) 21,789,470 29,852,308 Murabaha (Post Import) 27,222,019 38,388,808 Bai-Muazzal 141,401,157 113,546,354 Bai-Muazzal- House hold 14,611 14,611 Bai-Muazzal Trust Receipt 67,036,516 18,679,435 Musharaka (Preshipment) 11,441,185 11,730,536 Others 24,460,241 27,650,172

293,365,199 239,862,224

Rent Suspense A/C 258,596,519 94,595,511

Total Compensation & Rent Suspense 751,102,267 461,185,089

12.4.1 Movement of Compensation and Rent Suspense A/C

Balance at the beginning of the year 461,185,089 304,827,189 Add: Amount transferred to suspense account during the year 407,193,706 178,655,415 Less: Amount recovered from suspense account during the year (12,523,709) (19,016,649)Less: Amount written off/ waived during the year (104,752,820) (3,280,866)Balance at the end of the year 751,102,267 461,185,089

12.5 Provision for Taxation

Provision for Current tax

Balance at the beginning of the year 4,146,098,404 3,343,147,121 Add: Provision made during the year (Note:12.5.1) 1,400,446,160 802,951,284

5,546,544,564 4,146,098,405 Advance taxBalance at the beginning of the year 3,743,882,093 2,391,120,492 Paid during the year 796,019,502 1,352,761,601

4,539,901,595 3,743,882,093 Balance at the end of the year 1,006,642,969 402,216,312

12.3.2 Provision for suspense account


Provision Transferred from provision for protested bills - 6,186,250


29,507,792 24,507,792

2014 2013

Taka Taka

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12.5.1 Provision made during the year Operating Profit before provision & tax 3,964,274,678 2,924,550,001

Add: amount to be deducted for separate consideration 298,316,174 199,289,944 Less: amount to be deducted for separate consideration 1,103,309,351 1,384,486,987

Total Taxable Income 3,159,281,501 1,739,352,958

Total Tax liability for current yearBusiness Tax @ 42.5% 1,342,694,638 739,225,007 Dividend Tax @ 20% 56,113,704 62,359,276 Tax on gain on shares & securities @ 10% 1,637,818 1,367,001 Provision required 1,400,446,160 802,951,284

Provision made 1,400,446,160 802,951,284

12.6 Zakat fundOpening Balance 48,818,029 44,381,311 Addition this year 63,582,948 50,488,279 Less: Paid during the year (41,842,819) (46,051,561)Less: Transferred to Sadaka fund (Balance of Zakat Fund) (6,975,210) - Closing Balance at the end of the year 63,582,948 48,818,029

12.7 Mudaraba Pro�t DistributionOpening Balance 10,000,000 6,595,602 Addition this year 10,000,000 10,000,000 Less: Paid during the year (10,000,000) (6,595,602)Closing Balance at the end of the year 10,000,000 10,000,000

13 Deferred Tax Liability/(Asset)Balance at the beginning of the year 1,577,248 70,528 Add: Provision made during the year 3,346,780 1,506,720 Closing balance at the end of the year 4,924,028 1,577,248

14 Capital

14.1 Authorized Capital1,000,000,000 ordinary shares of Tk. 10 each 10,000,000,000 10,000,000,000

2014 2013

Taka Taka

14.2 Issued, Subscribed and Paid up Capital

The Paid-up Capital of the Bank is currently Tk. 7,031,415,640 divided into 703,141,564 Ordinary Shares of Tk 10 each 7,031,415,640 7,031,415,640

Break up of paid up capital is as follows

26,000,000 no. Ordinary shares of Tk.10 issued for cash 260,000,000 260,000,000

477,322,945 no. Ordinary shares of Tk. 10 each for cash as right share 4,773,229,450 4,773,229,450

199,818,619 no.ordinary shares of Tk 10 each issued as bonus shares 1,998,186,190 1,998,186,190

7,031,415,640 7,031,415,640

Sponsor Shareholders Group 2,142,269,080 1,950,933,080

General Shareholders Group 4,889,146,560 5,080,482,560

7,031,415,640 7,031,415,640

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14.3 Classi�cation of Shareholders by holding of Shares

No. of Shareholders

No. of shares Percentage of

holding of sharesYear 2014

Less than 500 shares 31,063 4,996,514 0.71%

501 to 5,000 shares 34,427 64,401,739 9.16%

5,001 to 10,000 shares 3,781 26,494,310 3.77%

10,001 to 20,000 shares 2,049 27,726,408 3.94%

20,001 to 50,000 shares 980 29,262,273 4.16%

50,001 to 99,999 shares 652 550,260,320 78.26%

Total 72,952 703,141,564 100.00%

Year 2013

Year 2013 No. of Shareholders

No. of shares Percentage of

holding of sharesShareholding range

Less than 500 shares 31,864 5,012,253 0.71%

501 to 5,000 shares 42,535 71,157,801 10.12%

5,001 to 10,000 shares 4,211 29,382,116 4.18%

10,001 to 20,000 shares 2,263 30,419,428 4.33%

20,001 to 50,000 shares 1,090 32,276,868 4.59%

50,001 to 99,999 shares 651 534,893,098 76.07%

Total 82,614 703,141,564 100.00%

14.4 Particulars of shareholding and Percentage Analysis

Particulars of shareholding:

Year 2014 2014 2013

Number of Share holders

Number of Shares

Taka Taka

Sponsors & Placement 29 175,059,878 1,750,598,780 1,700,262,780

Sponsors Foreign 7 3,939,914 39,399,140 39,399,140

Sponsors & Placement Company 4 35,227,116 352,271,160 211,271,160

General Public 71,322 334,952,296 3,349,522,960 4,040,454,090

Institutions (Bank & Insurance) 66 21,253,699 212,536,990 203,063,140

Institution (Others) 1,441 113,649,042 1,136,490,420 729,793,990

ICB Account Holders 57 463,884 4,638,840 4,719,730

ICB 1 12,722,437 127,224,370 44,216,870

ICB Unit Fund 1 2,615,025 26,150,250 34,950,250

ICB Mutual Fund 8 124,014 1,240,140 2,626,550

Employee 4 2,879,305 28,793,050 18,040,680

Non-Resident Bangladeshi 12 254,954 2,549,540 2,617,260

72,952 703,141,564 7,031,415,640 7,031,415,640

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Percentage of shareholding Analysis: Percentage Percentage

Sponsors & Placement 24.90% 24.18%

Sponsors Foreign 0.56% 0.56%

Sponsors & Placement Company 5.01% 3.00%

General Public 47.64% 57.71%

Institutions (Bank & Insurance) 3.02% 2.89%

Institution (Others) 16.16% 10.38%

ICB Account Holders 0.07% 0.07%

ICB 1.81% 0.63%

ICB Unit Fund 0.37% 0.50%

ICB Mutual Fund 0.02% 0.04%

Employee 0.41% -

Non-Resident Bangladeshi 0.04% 0.04%

100.00% 100.00%

14.5 Capital Adequacy (Solo Basis)

Position of capital adequacy are given below:-

a) Core Capital ( Tier -I)

i) Paid-up Capital 7,031,415,640 7,031,415,640

ii) Statutory Reserve (Note: 15) 2,784,497,917 2,122,994,344

iii) Retained Earnings (Note: 17) 1,271,790,110 846,533,259

11,087,703,667 10,000,943,243

b) Supplementary Capital (Tier-II)

i) General Provision {Note 12.2(b+c)} 1,462,718,955 1,081,331,886

ii) Assets Revaluation Reserve (eligible) 527,839,863 541,242,551

(As per Bangladesh Bank Guideline 50% is considered as Supplementary Capital)

1,990,558,818 1,622,574,437

c) Total eligible capital (a +b) 13,078,262,485 11,623,517,680

d) Total Risk Weighted Assets 115,119,505,000 99,834,160,000

e) Required Capital (10% and 9% of Risk Weighted Assets respectively) 11,511,950,500 9,983,416,000

f) Total Capital Surplus (c-e) 1,566,311,985 1,640,101,680

2014 2013Taka Taka

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Taka Taka

Capital Adequacy (Consolidated basis)

Position of capital adequacy are given below:-a) Core Capital ( Tier -I)

i) Paid-up Capital 7,031,415,640 7,031,415,640

ii) Statutory Reserve (Note: 15) 2,784,497,917 2,122,994,344

iii) General Reserve 2,790,193 6,666,534

iv) Retained Earnings {Note: 17(a)} 1,298,601,775 848,684,455

11,117,305,525 10,009,760,972

b) Supplementary Capital (Tier-II)

i) General Provision {Note 12.2(b+c)} & 34(a) 1,479,884,945 1,081,331,886

ii) Assets Revaluation Reserve (eligible) 527,839,864 541,242,551

(As per Bangladesh Bank Guideline 50% is considered as Supplementary Capital)

2,007,724,809 1,622,574,437

c) Total eligible capital (a +b) 13,125,030,334 11,632,335,409

d) Total Risk Weighted Assets 114,990,400,000 99,547,905,000

e) Required Capital (10% of Risk Weighted Assets) 11,499,040,000 9,954,790,500

f) Total Capital Surplus (c-e) 1,625,990,334 1,677,544,909

Particulars2014 2013

Requirement Capital

MaintainedRequirement

Capital Maintained

Core Capital: (Tier-I ) 5.00% 9.63% 5.00% 10.02%

Supplementary Capital: (Tier-II) - 1.73% - 1.63%

Total 10.00% 11.36% 10.00% 11.64%

Capital Adequacy Ratio (Consolidated basis)

Particulars2014 2013

Requirement Capital

MaintainedRequirement

Capital Maintained

Core Capital: (Tier-I ) 5.00% 9.67% 5.00% 10.06%

Supplementary Capital: (Tier-II) - 1.75% - 1.63%

Total 10.00% 11.41% 10.00% 11.69%

Capital Adequacy Ratio (Solo basis)

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a) Risk Weights for Credit Risk

(amount in Taka)

Risk Weights (Both B/S & Off-B/S)

31.12.2014 31.12.2013

Principal amountRisk Weighted

AssetsPrincipal amount

Risk Weighted Assets

0% 17,236,900,000 - 14,394,900,000 -

20% 22,310,700,000 4,462,140,000 19,706,300,000 3,941,260,000

40% 269,000,000 107,600,000 - -

50% 31,484,200,000 15,742,100,000 22,148,000,000 11,074,000,000

60% 959,400,000 575,640,000 - -

75% 14,400,800,000 10,800,600,000 18,180,100,000 13,635,075,000

80% 678,300,000 542,640,000 - -

100% 64,072,900,000 64,072,900,000 36,080,500,000 36,080,500,000

120% 50,800,000 60,960,000 - -

125% 6,995,400,000 7,427,625,000 19,969,700,000 24,962,125,000

150% 1,159,200,000 1,738,800,000 945,800,000 1,418,700,000

Total 159,617,600,000 105,531,005,000 131,425,300,000 91,111,660,000

b) Risk Weights for Operational Risk 795,450,000 7,954,500,000 641,550,000 6,415,500,000

c) Risk Weights for Market Risk 163,400,000 1,634,000,000 230,700,000 2,307,000,000

Total Risk Weighted Assets 115,119,505,000 99,834,160,000

Consolidate basis

a) Risk Weights for Credit Risk (amount in Taka)

Risk Weights 31.12.2014 31.12.2013

(Both B/S & Off-B/S) Principal amountRisk Weighted

AssetsPrincipal amount

Risk Weighted Assets

0% 17,237,400,000 - 14,395,000,000 -

20% 22,376,800,000 4,475,360,000 19,735,400,000 3,947,080,000

40% 269,000,000 107,600,000 - -

50% 31,484,200,000 15,742,100,000 22,148,000,000 11,074,000,000

60% 959,400,000 575,640,000 -

75% 14,400,800,000 10,800,600,000 18,180,100,000 13,635,075,000

80% 678,300,000 542,640,000 -

100% 64,100,700,000 64,100,700,000 36,103,300,000 36,103,300,000

120% 50,800,000 60,960,000 - -

125% 6,822,100,000 7,211,000,000 19,703,800,000 24,629,750,000

150% 1,159,200,000 1,738,800,000 945,800,000 1,418,700,000

Total 159,538,700,000 105,355,400,000 131,211,400,000 90,807,905,000

b) Risk Weights for Operational Risk 800,100,000 8,001,000,000 643,300,000 6,433,000,000

c) Risk Weights for Market Risk 163,400,000 1,634,000,000 230,700,000 2,307,000,000

Total Risk Weighted Assets 114,990,400,000 99,547,905,000

14.6 Breakdown of gross Risk-Weighted Assets (RWA) in the various categories of risk-weights

Solo Basis

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A) Credit Risk

1. Balance Sheet Exposure (amounts in crore Taka)

Solo Consolidated

Sl. Exposure Type BB’s

Rating Risk Weight Exposure

Risk Weighted Asset

ExposureRisk Weighted

Asset

1 2 3 4 5 6 = (4×5) 7 8 = (4×7) a) Cash and Cash Equivalents 0% 97.58 - 97.63 -

b) Claims on Bangladesh Government (other than PSEs) and Bangladesh Bank (denominated in domestic and foreign currency)

0% 1,626.11 - 1,626.11 -

c) Claims on other Sovereigns & Central Banks

0% - - - -

d) Claims on Bank for International Settlements, International Monetary Fund and European Central Bank

0% - - - -

e) Claims on Multilateral Development Banks (MDBs): i) IBRD , IFC, ADB, AfDB,

EBRD, IADB, EIB, EIF, NIB,

CDB, IDB, CEDB

0% - -

ii) Other MDBs 1 20% - - - -

2,3 50% - - - -

4,5 100% - - - -

6 150% - - - -

Unrated 50% - - - -

f)

Claims on Public Sector Entities (excluding equity exposure) in Bangladesh

1 20% - - - -

2,3 50% - - - -

4,5 100% - - - -

6 150% - - - -

Unrated 50% - - - -

g) Claims on Banks and NBFIs:

i) Original maturity over 3 months

1 20% 565.95 113.19 565.95 113.19

2,3 50% 217.61 108.81 217.61 108.81

4,5 100% - - -

6 150% - - -

Unrated 100% 22.42 22.42 22.42 22.42

ii) Original maturity less than 3 months

20% 870.24 174.05 876.85 175.37

h) Claims on Corporate (excluding equity exposure)

1 20% 532.52 106.50 532.52 106.50

2 50% 2,097.05 1,048.53 2,097.05 1,048.53

3,4 100% 3,603.94 3,603.94 3,603.94 3,603.94

5,6 150% - - - -

Unrated 125% 121.20 151.50 121.20 151.50

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h.1 SME-1 20% - - - -

SME-2 40% 26.85 10.74 26.85 10.74

SME-3 60% 90.61 54.37 90.61 54.37

SME-4 80% 66.23 52.98 66.23 52.98

SME-5 120% 5.08 6.10 5.08 6.10

SME-6 150% - - - -

Unrated (small enterprise & <BDT 3.00 m)

75% 869.04 651.78 869.04 651.78

Unrated (small enterprise having ≥BDT 3.00 m & Medium enterprise)

100% 790.80 790.80 790.80 790.80

i) Claims under investment risk mitigation

a) Corporate Corporate - 231.97 158.30 231.97 158.30

b) Retail & Small Retail and Small

125% 5.65 7.06 5.65 7.06

j) Claims categorized as retail portfolio 75% 175.40 131.55 175.40 131.55

k) Consumer Loan 100% 41.40 41.40 41.40 41.40

l) Claims fully secured by residential property 50% 183.73 91.87 183.73 91.87

m) Claims fully secured by commercial real estate 100% 233.98 233.98 233.98 233.98

n) 1.Past Due Claims

- Where speci�c provisions are less than 20 per cent of the outstanding amount of the past due claim ;

150% 115.92 173.88 115.92 173.88

- Where speci�c provisions are no less than 20 per cent of the outstanding amount of the past due claim.

100% 47.01 47.01 47.01 47.01

- Where speci�c provisions are more than 50 per cent of the outstanding amount of the past due claim.

50% 22.60 11.30 22.60 11.30

2. Claims fully secured against residential property that are past due for more than 90 days and/or impaired speci�c provision held there-against is less than 20% of outstanding amount

100% 64.19 64.19 64.19 64.19

3. Loans and claims fully secured against residential property that are past due by 90 days and /or impaired and speci�c provision held there-against is more than 20% of outstanding amount

75% 84.51 63.38 84.51 63.38

31.12.2014

A) Credit Risk


Solo Consolidated

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31.12.2014

A) Credit Risk


Solo Consolidated

o) Capital Market Exposure 125% - - 130.67 163.34

p) Unlisted equity investments and regulatory capital instruments issued by other banks (other than those deducted from capital) held in banking book

125% 213.16 266.45 65.16 81.45

q) Investments in venture capital

150% - - - -

r) Investments in premises, plant and equipment and all other �xed assets

100% 267.59 267.59 268.40 268.40

s) Claims on all �xed assets under operating lease 100% - - - -

t) All other assets

i) Claims on GOB & BB (eg. Advanced income tax, reimbursement of pratirakka/shdharon sanchay patra, etc.)

0% 453.99 - 455.20 -

ii) Staff loan/Investment 20% 142.38 28.48 142.38 28.48

iii) Cash items in process for collection 20% - - - -

iv)claims on Off-shore Banking Units (OBU) 100% 421.23 421.23 421.23 421.23

iv) Other assets (net off speci�c provisions) 100% 0.38 0.38 2.35 2.35

Total 14,308.32 8,903.74 14,301.64 8,886.18

2. Off-Balance Sheet Exposure

Sl. Exposure TypeBB’s

RatingRisk Weight Exposure

Risk Weighted Asset

Exposure Risk Weighted

Asset

1 2 3 4 5 6 = (4×5) 7 8 = (4×7)

a) Claims on Bangladesh Government and Bangladesh Bank

0%

b) Claims on other Sovereigns & Central Banks 0%

c) Claims on Bank for International Settlements, International Monetary Fund and European Central Bank

0%

d) Claims on Multilateral Development Banks (MDBs):i) IBRD , IFC, ADB, AfDB, EBRD, IADB, EIB, EIF, NIB, CDB, IDB, CEDB

0%

ii) Other MDBs 1 20%

2,3 50%

4,5 100%

6 150%

Unrated 50%

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31.12.2014 (amounts in crore Taka)

Solo Consolidated

e) Claims on Public Sector Entities (other than Government) in Bangladesh

1 20%2,3 50%4,5 100%6 150%

Unrated 50%f) Claims on Banks and

FIs:i) Maturity over 3 months

1 20% - - - -

2,3 50% - - - -

4,5 100% - - - -

6 150% - - - -

Unrated 100% - - - -

ii) Maturity less than 3 months

20% - - - -

g) Claims on Corporate (excluding equity exposure)

1 20% 119.98 24.00 119.98 24.00

2 50% 627.43 313.72 627.43 313.72

3,4 100% 730.78 730.78 730.78 730.78

5,6 150% - - - -

Unrated 125% 127.56 159.45 127.56 159.45 h) Against retail portfolio &

Small Enterprise (excluding consumer loan )

75% 121.34 91.01 121.34 91.01

h.1 SME-1 20% - - - -

SME-2 40% 0.05 0.02 0.05 0.02

SME-3 60% 5.33 3.20 5.33 3.20

SME-4 80% 1.60 1.28 1.60 1.28

SME-5 120% - - - -

SME-6 150% - - - - Unrated

(small enterprise & <BDT 3.00 m)

75% 189.79 142.34 189.79 142.34

Unrated (small

enterprise having ≥BDT

3.00 m & Medium

enterprise)

100% 183.57 183.57 183.57 183.57

i) Consumer Loan 100% - - - -

j) Claims fully secured by residential property 50% - - - -

k) Claims fully secured by commercial real estate

100% - - - -

l) Investment in venture capital 150% - - - -

m) All other assets 100% - - - -

2,107.43 1,649.36 2,107.43 1,649.36

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B) Capital charge for Market Risk (amounts in crore Taka)

Solo Consolidated

Sl no.

Details

Capital Charge for

General Market

Risk

Total Capital Charge for

Speci�c Market Risk

Total Capital Charge for General & Speci�c

Market Risk

Total Capital Charge for General & Speci�c

Market Risk

A. Interest Rate Related instruments - - - - B. Equities 5.76 5.76 11.52 11.52 C. Foreign Exchange Position - 4.82 4.82 4.82

Total (A+B+C): 5.76 10.58 16.34 16.34

2014 (amounts in crore Taka)

C) Capital Charge for Operational Risk (Basic Indicator Approach)

Solo Consolidated

YearAverage Gross

Income

Capital Charge (15% of Average Gross Income)

Average Gross

Income

Capital Charge (15% of Average Gross Income)

2013

530.30 79.55 533.37 80.012012

2011

2014 2013

Taka Taka

15 Statutory ReserveOpening balance 2,122,994,344 1,718,062,455Add: Addition during the year 661,503,573 404,931,889

2,784,497,917 2,122,994,344

16 Revaluation Reserve on fixed assets

Revalued amount of �xed assets 1,628,850,199 1,670,299,434 Book Value of �xed assets 546,365,097 560,320,313 Balance of revaluation reserve 1,082,485,102 1,109,979,121 Less: Adjustment made based on difference amount of depreciation 26,805,375 27,494,019 Remaining balance of revaluation reserve 1,055,679,727 1,082,485,102

Property class under the head ‘Land and Building’ have been revalued in the year 2011, in accordance with the applicable rules and regulations as per BAS-16, ‘Property, Plant and Equipment’ and as per Bangladesh Bank BCD circular letter no: 12 & 18, dated: 20 April 1993 & 15 June 1993 and BRPD circular no: 10, dated: 25 November 2002. The valuation �rms have used the fair value model to revalue the class of property. The valuation was not reviewed in the year 2014.

a. The effective date of revaluation:

The revaluation was completed by the valuers on 20.03.2011. And The revaluation effect on the assets have been accounted for on 30.03.2011.

b. Valuer:Two separate independent valuer �rm ‘Commodity Inspection Services (BD) Ltd.’ and ‘Royal Inspection International Ltd.’ have been assigned to carry on the valuation job.

c. Method used for determination of fair value:

The valuer �rms have used the market-based evidence to appraise the class of property ‘Land and Building’. They have used current market prices as reference that has recently been observed for selling the land and buildings of same class of the same locality for appraising the fair value. Using the appraisal they have determined the amount of revaluation of the assets.

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(amounts in Taka)

LocationClass of property

Book ValueRevaluation

SurplusDepreciation on

book value

Depreciation on revalued

amount

Amount of adjustment

City Center, Head Of�ce Building 372,821,636 890,368,864 9,320,541 31,579,763 22,259,222

Chandaikona BranchLand 2,111,623 10,218,377 - - -

Building 1,098,146 1,226,538 27,454 58,117 30,663

Savar Branch Building 29,933,417 27,129,455 748,335 1,425,277 676,942

Panthapath Branch Building 24,905,416 50,293,825 622,635 1,879,981 1,257,346

Rampura Branch Building 37,070,987 35,273,931 926,775 1,808,623 881,848

Khulna Branch Building 17,465,540 13,761,485 436,638 780,676 344,038

Nawabpur Road Branch Building 60,958,332 54,212,625 1,523,958 2,879,274 1,355,316

546,365,097 1,082,485,102 13,606,336 40,411,711 26,805,375

2014 2013

Taka Taka

17 Retained Earnings

Opening balance 846,533,259 960,004,602

Less: Issue of cash dividend (843,769,877) (318,744,971)

Less: Issue of bonus shares - (637,489,940)

Add: Transferred from Pro�t & Loss Account 1,242,221,353 815,269,549

Add: Transferred from Revaluation Reserve for Fixed Assets 26,805,375 27,494,019

1,271,790,110 846,533,259

17(a) Consolidated retained earnings

Opening Balance 848,684,454 930,222,915

Less: Issue of cash dividend (843,769,877) (318,744,971)

Less: Issue of bonus shares - (637,489,940)

Add: Transfer from Pro�t & Loss Account of SIBL 1,242,221,353 815,269,549

Add: Transferred from Revaluation Reserve for Fixed Assets of SIBL 26,805,375 27,494,019

1,273,941,305 816,751,572

Add: Current year pro�t/(loss) of subsidiaries


SIBL Investment Limited (115,067) (98,590)

1,298,601,795 848,684,481

Less: Non controlling interests of pro�t/(loss) attributable for current year

SIBL Securities Limited 20 27


1,298,601,774 848,684,454

SIBL has invested amount of Taka- 1,229,999,000 and Taka- 249,999,400 in two of its subsidiaries ‘SIBL Securities Ltd. (SIBL SL)’ and ‘SIBL Investment Ltd. (SIBL IL)’ respectively. SIBL holds 99.9999187% and 99.99976% of total shares of its subsidiaries ‘SIBL SL.’ and ‘SIBL IL.’ respectively while the other shareholders of the subsidiaries hold 0.00008130081% and 0.00024% of total shares respectively.

Revaluation Particulars:

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Details of the shareholding position is as under:

Sl no.

ShareholdersNo. Shares Value of shares

Percentage of holding of shares

SIBL SL SIBL IL SIBL SL SIBL IL SIBL SL SIBL IL

1Social Islami Bank Limited

12,299,990 2,499,994 1,229,999,000 249,999,400 100.000% 100.000%

2 Alhaj Nasiruddin 1 1 100 100 0.000% 0.000%

3Mr. Md. Sayedur Rahman

1 - 100 - 0.000% -

4Major (Retd.) Dr. Md. Rezaul Haque

1 1 100 100 0.000% 0.000%

5Alhaj Sultan Mahmood Chowdhury

1 1 100 100 0.000% 0.000%

6Mr. Abdul Awal Patwary

1 1 100 100 0.000% 0.000%

7

Hamdard Laboratories (Waqf) Bangladesh, Represented by: Mr. Anisul Hoque

1 - 100 - 0.000% -

8 Mrs. Nargis Mannan 1 - 100 - 0.000%

9Mr. Kamaluddin Ahmed

1 1 100 100 0.000% 0.000%

10Alhaj Sk. Mohammad Rabban Ali

1 1 100 100 0.000% 0.000%

11 Mr. A. Jabbar Mollah 1 - 100 - 0.000% -

12,300,000 2,500,000 1,230,000,000 250,000,000 100.00% 100.00%

2014 2013

Taka Taka

17.1 Current year retained earnings

Social Islami Bank Limited

Pro�t after tax 1,903,724,926 1,220,201,438

Less : Statutory Reserve 661,503,573 404,931,889

1,242,221,353 815,269,549

17.1.(a) Consolidated Current year retained earnings

Pro�t after tax 1,928,385,416 1,252,134,346

Less :Statutory Reserve 661,503,573 404,931,889

Pro�t/(Loss) attributable to Group 1,266,881,843 847,202,458

Pro�t/(Loss) attributable to Subsidiaries

SIBL Securities Limited 20 27


Pro�t/(Loss) attributable to parent 1,266,881,823 847,202,431

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Taka Taka

17(b) Non-controlling interest

SIBL Securities Limited

Paid up capital 1,230,000,000 1,230,000,000

Retained earnings 28,515,729 3,740,171

Net Assets 1,258,515,729 1,233,740,171

SIBL Investment Limited

Paid up capital 250,000,000 250,000,000

Retained earnings (1,704,045) (1,588,978)

Net Assets 248,295,955 248,411,022

Non-controlling interests

SIBL Securities Limited, @ 0.00008% of net assets 1,021 1,001

SIBL Investment Limited, @0.00024% of net assets 596 596

Total non-controlling interest 1,617 1,597

18 Contingent liabilities

18.1 Acceptances and Endorsements

Bill bankers’ liabilities (DP) 10,243,671,660 8,661,925,200

Bill bankers’ liabilities (BB/FO) 1,503,927,278 1,512,247,997

Bill bankers’ liabilities (BB/LO) 2,984,208,600 3,887,847,700

Bill bankers’ liabilities (EPZ) 187,991,000 442,696,000

Bill bankers’ liabilities Others 383,034,250 482,165,500

15,302,832,788 14,986,882,397

18.2 Letter of Credit

L/C bankers’ liabilities (DP) 3,446,603,500 3,100,423,000

L/C bankers’ liabilities (BB/FO) 759,939,605 1,051,634,857

L/C bankers’ liabilities (BB/LO) 1,222,442,700 1,258,526,700

L/C bankers’ liabilities (Cash) 4,905,573,731 3,526,015,455

L/C bankers’ liabilities (EPZ) 243,591,156 361,362,000

L/C bankers’ liabilities (Others) 439,110,501 556,277,874

11,017,261,193 9,854,239,886

18.3 Letters of guarantees

Letters of guarantee 3,936,013,964 3,246,076,013

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18.4 Bills for collection

In-ward bills for collection 84,421,589 662,472,572

Out-ward Bills for Collection 1,821,325,266 1,720,558,919

1,905,746,855 2,383,031,491

18.5 Other Contingent Liabilities - -

18.6 Other Commitments - -

Total Off-balance sheet items 32,161,854,799 30,470,229,787

Income Statement (Note-19 to Note-38)

Income:

Income from Investment (Note-19) 13,943,265,660 13,629,421,075

Income from Investment in Shares & Securities (Note-21) 296,946,697 325,466,389

Commission, Exchange and Brokerage Income (Note-22) 1,188,376,725 1,026,570,990

Other operating income (Note-23) 289,487,335 228,021,115

15,718,076,416 15,209,479,569

Expenses:

Pro�t paid on Deposits (Note-20) 9,007,200,466 9,706,867,767

Administrative expenses 1,665,168,663 1,514,105,302

Other operating expenses 873,622,221 890,794,921

Depreciation on Banking assets 207,810,388 173,161,578

11 ,753,801,738 12,284,929,568

Income over expenditure 3,964,274,678 2,924,550,001

19 Income from Investment

Pro�t on Murabaha 252,389,545 475,911,824

Pro�t on Bai-Muazzal 7,576,055,149 6,895,601,710

Pro�t on Hire-Purchase 2,211,554,626 1,802,282,885

Pro�t on Musharka 49,031,659 57,862,396

Pro�t on Bai-Salam 3,792,881 9,370,413

Pro�t on Quard against MTDR, Scheme and others 886,718,883 1,041,636,004

Pro�t on Inland Document Bill Purchased 417,370,649 401,661,845

Pro�t on Foreign Document Bill Purchased 1,059,871,178 1,070,394,404

Pro�t on Ijarah 18,577,731 24,673,596

Pro�t on Investment against Mudaraba Deposit with other banks and NBFIs 928,125,762 1,367,356,318

Pro�t on other investments (Card, Wakalat fee etc.) 273,314,282 448,121,917

Pro�t on Mudaraba 266,463,315 34,547,764

13,943,265,660 13,629,421,075

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19(a) Consolidated income from investment


Add: Income from investment of subsidiaries of SIBL 40,969,207 23,171,187



Grand total of consolidated investment income 13,984,234,867 13,652,592,262

20 Pro�t paid on Deposits

Pro�t paid on deposits

Mudaraba Savings Deposits (MSD) 258,082,442 194,524,476

Mudaraba short notice deposit (MSND) 69,293,261 71,095,053

Mudaraba term deposit (MTDR) 6,704,293,229 7,861,522,071

Cash waqf fund deposit 10,215,813 9,653,330

Pro�t paid on Scheme Deposits & others 1,762,576,009 1,372,089,282

8,804,460,754 9,508,884,212

Pro�t paid on borrowings 202,739,712 197,983,555

Total pro�t paid on deposits and borrowings 9,007,200,466 9,706,867,767

21 Income from Investment in Shares & Securities

Income from Investment in Islamic Bond 135,283,277 156,284,171

Income from Investment in Shares 16,378,178 13,670,008

Belhasha Preference share 70,000,000 70,000,000

Dividend Income 75,285,242 85,512,211

296,946,697 325,466,389

Social Islami Bank Ltd. has investment of Tk. 511.60 crore in Bangladesh Govt.Islamic Investment Bond for which 4.00%, average rate of income has been provided for January-December 2014. The nature of the Fund is to generate pro�t according to Mudaraba Principle.

21(a) Consolidated income from Investment in Shares & Securities

Social Islami Bank Ltd. 296,946,697 325,466,389

Add: Income from Investment in Shares & Securities of subsidiaries of SIBL 3,099,008 -

SIBL Securities Ltd. 3,099,008 -


Grand total of consolidated income from Investment in Shares & Securities 300,045,705 325,466,389

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22 Commission, Exchange & Brokerage

Commission 567,544,000 555,276,602

Exchange income 620,832,724 471,294,388

1,188,376,725 1,026,570,990

22(a) Consolidated income from commission, exchange & brokerage


Add: Income from commission, exchange & brokerage of subsidiaries of SIBL 36,568,217 29,545,581



Grand total of consolidated income from commission, exchange & brokerage 1,224,944,942 1,056,116,571

23 Other Operating Income

Telex charge recovered - 346

P & T charge recovered 3,189,701 4,182,110

Courier Charges Recovery & Others 5,466,248 5,263,672

Services & charges 165,161,327 119,726,503

SWIFT/ Return charge recovered 45,901,179 31,564,393

SWIFT/ Return charge recovered (OBU) - 201,839

Other charges (Note: 23.1) 69,768,880 43,762,766

289,487,335 204,701,630

23(a) Consolidated other operating income


Add: Other operating Income of subsidiaries of SIBL 6,919,271 5,133,015



Grand total of consolidated income from commission, exchange & brokerage 296,406,605 233,154,130

23.1 Other Charges

Rent receipts 3,009,260 4,302,033

Income from sale of forms 382,475 374,924

Service charge on SIBL Cards 410,469 -

Notice pay earnings 2,399,713 4,233,374

Miscellaneous income 63,566,963 34,852,434

69,768,880 43,762,766

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24 Salary & Allowances

Basic Salary 662,202,940 602,511,848

Allowances 646,317,001 545,045,841

Bonus 269,497,155 290,430,130

L/E Salary & Allowances 11,687,707 8,242,169

Bank’s Contribution to Provident fund 59,973,075 53,340,586

Bank’s Contribution to Social Insurance fund 6,590,785 5,929,242

1,656,268,663 1,505,499,817

24(a) Consolidated expenses for Salary and Allowance


Add: Salary and Allowance for subsidiaries 9,427,449 6,243,499



1,665,696,112 1,511,743,316

25 Rent, Taxes, Insurance & Electricity etc.Rent, Rates & Taxes (note: 25.1) 137,062,361 128,700,530 Insurance (note: 25.2) 64,548,840 58,495,559 Electricity, Lighting & Water (note: 25.3) 51,642,768 40,650,432

253,253,969 227,846,521

25(a) Consolidated expenses for rent, taxes, insurance & electricity


Add: Rent, Taxes, Insurance & Electricity etc. of subsidiaries 2,270,439 598,854

SIBL Securities Ltd. 2,270,439 598,854


255,524,408 228,445,375

25.1 Rents, Rates, Taxes, Insurance & Lighting etc.

Rents

Rent (Of�ce) 130,560,396 125,238,963

Rent (Garage) 336,034 240,448

Rent (Godown & others) 2,302,051 2,145,557

133,198,481 127,624,968

Rates and Taxes 3,863,880 1,075,562

Total Rents, Rates & Taxes 137,062,361 128,700,530

25.2 InsurancesInsurance Premium in Counter 691,811 731,641 Insurace Premium in Transit 3,613,831 898,900 Insurance Premium Safe/Vault 2,660,253 2,187,670 Insurance Premium on deposit 55,589,047 53,040,467 Insurance Premium on Vehicle 1,376,681 1,225,885 Other Insurance 617,217 410,996

64,548,840 58,495,559

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25.3 Lighting & Electricity

Lighting & Electricity Bill (Of�ce) 45,478,956 34,972,178

Lighting & Electricity Charges (Of�ce) 3,518,536 3,327,850

Lighting & Electricity Charges (Godown) 41,881 -

Sub Total 49,039,373 38,300,028

Water & Sewerage 2,603,395 2,350,404

51,642,768 40,650,432

26 Legal Expenses

Legal Fees & Charge 7,721,015 7,570,649

Stamp Duties 2,840 5,780

Other Legal Expenses 418,463 349,709

8,142,318 7,926,138

26(a) Consolidated legal expenses

Social Islami Bank Limited 8,142,318 7,926,138

Add: Legal expenses for subsidiaries - 17,250

SIBL Securities Ltd. - 17,250


8,142,318 7,943,388

27 Postage, Stamps, Telecommunication etc.

Cable Network rent 86,925 353,111

Telegram, Fax, Telex & other charges 485 1,860

Telephone charges 4,838,569 5,044,188

Mobile phone charges 3,069,042 2,826,004

7,995,021 8,225,162

27(a) Consolidated expenses for Postage, Stamps, Telecommunication etc.


Add: Postage, Stamps, Telecommunication etc. expenses for subsidiaries 666,229 741,676

SIBL Securities Ltd. 666,229 741,676


8,661,250 32,286,323

28 Stationery, Printing, Advertisements etc.

Table Stationery 8,391,492 8,534,271

Printing Stationery 39,527,331 32,694,298

News Paper & Magazine 13,445,800 12,969,944

Television & Radio 15,479,650 11,151,625

Neon Sign, Banner etc. 135,038 290,036

Other Publicity 3,846,560 25,357,252

80,825,871 90,997,426

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28(a) Consolidated expense of Stationery, Printing, Advertisement etc.Social Islami Bank Ltd. 80,825,871 90,997,426

Stationery, Printing, Advertisement expense of Subsidiaries of SIBL 664,975 546,408

SIBL Securities Limited. 664,975 546,408

SIBL Investment Limited. - -

81,490,846 91,543,834

29 Managing Director’s Salary and AllowancesBasic Salary 4,200,000 4,185,162 Allowances 3,000,000 3,000,323 Festival & other Bonus 1,700,000 1,420,000

8,900,000 8,605,485

30 Directors’ Fees & Meeting ExpensesDirectors Fee 2,518,500 1,420,250 Meeting Expenses 3,879,357 2,844,325

6,397,857 4,264,575

30(a) Consolidated Directors’ fees & Meeting Expenses:


Directors’ Fees & Meeting Expenses of Subsidiaries of SIBL 586,500 540,500 SIBL Securities Limited 586,500 540,500 SIBL Investment Limited - -

6,984,357 4,805,075

31 Shariah Supervisory Committee’s Fees & Expenses

Shariah Council Meeting Expenses 305,000 195,500 Others 37,050 58,862

342,050 254,362

32 Depreciation and Repair of Bank’s Assets

a) Depreciation of Bank’s Assets (Annexure A)Land - - Building 45,804,680 41,474,799 Furniture & Fixtures 39,789,119 30,542,352 Of�ce Appliance & Equipment 80,047,694 74,620,125 Computer Software 5,105,621 - Vehicles 10,014,224 8,581,325 Books 50,271 53,971

180,811,609 155,272,571

b) Repair on Bank’s Assets 26,998,779 17,889,007

26,998,779 17,889,007

Total of Depreciation and repair of Bank’s Assets 207,810,388 173,161,578

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32(a) Consolidated balance of Depreciation


Add: Depreciation on assets of subsidiaries 1,771,995 1,583,062

SIBL Securities Ltd. 1,771,995 1,583,062 SIBL Securities Ltd. - -

209,582,383 174,744,640 33 Other Expenses

Local conveyance 12,895,834 12,730,010 Business Development Exp. 14,401,845 12,988,202 Petroleum, oil & lubricants 12,079,283 13,611,026 Entertainment expenses 21,918,738 16,607,510 Traveling allowances 9,480,407 8,978,035 Travelling Foreign 3,897,065 1,406,314 Bank charges 235,416 276,462 Uniform charges 721,120 715,868 Subscriptions to Institutions 3,863,093 2,670,930 Banks’ clearing house charges 99,262 95,259 CIB Charges 763,967 529,499 Transportation charges 3,089,526 2,252,250 News paper, Journal & periodicals 416,397 296,919 Washing charges 322,410 236,973 Training expenses Academy/ Internal 2,317,889 2,414,508 Training expenses at outside Banks 2,109,237 532,000 Meeting expenses 3,902,031 4,319,734 Direct expenses on investment 49,178 284,332 Up keep of branches/of�ce premises 4,440,555 4,874,413 Excise duty 1,460,640 727,825 Computer charges 11,015,968 8,486,677 Security Services 77,208,467 66,569,009 Cleaner Services 2,712,169 2,506,899 Others wages 45,914,201 40,727,964 Photocopy expenses 1,192,429 1,077,003 Photography expenses 39,833 65,556 Cash & Bank remittance charges 1,827,365 1,770,056 Honorarium 1,278,667 1,137,500 On-Line Expenses 20,233,279 20,195,319 ATM Rent Hardware 2,023,854 1,541,812 Credit Rating Fees 1,330,276 957,418 Other Utility 1,461,448 403,233 Right Share issue related Expense 3,610,000 273,341 Fair value adjustment for shares and securities 85,641,101 182,903,697 Gratuity expense 82,483,635 75,916,493 Zakat Expense 63,582,948 50,488,279 Miscellaneous expenses 15,926,854 16,363,705

515,946,385 557,932,031

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33(a) Consolidated Other Expenses


Add:Other Expenses for SIBL Securities Limited 13,148,880 7,272,755

License, fees, renewals and incorporation expenses 3,243,790 3,020,983

Entertainment 393,343 215,464

Bank charge and Excise duty 21,075 38,158

Others 9,490,672 3,998,150

Other Expenses for SIBL Investment Limited 97,817 81,340

Incorporation and Other Regulatory expenses 21,522 20,692

Bank charge and Excise duty 20,800 600

Others 55,495 60,048

529,193,082 565,286,127

34 Other Provision

Provision for other assets 5,000,000 4,910,000

5,000,000 4,910,000

34(a) Consolidated other provision


Add:Provision for subsidiaries

SIBL Securities Ltd.

Provision for general reserve 926,113 1,121,648

Provision for impairment of margin loan 12,680,995 4,484,995

Provision for diminution in value of investment 272,175 317,459

13,879,283 5,924,102


18,879,283 10,834,102

35 Provision against Investment, Off-Balance Sheet items & Others

Provision on classi�ed investment 270,369,745 752,687,954

Provision on unclassi�ed investment 364,470,776 84,746,527

Provision on Off-Balance Sheet items 16,916,293 27,057,799

Other provisions (note: 34) 5,000,000 4,910,000

656,756,813 869,402,279

35(a) Consolidated Provision against Investment, Off-Balance Sheet items & Others


Add:Provision for subsidiaries 13,879,283 5,924,102



670,636,096 875,326,381

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36 Provision for Income Tax

Current year provision (Note: 36.1) 1,400,446,160 802,951,284

Deferred Tax expense/(income) (Note: 36.2) 3,346,780 1,506,720

1,403,792,939 804,458,005

36(a) Consolidated Provision for Income Tax

Social Islami Bank Limited 1,403,792,939 804,458,005



1,424,140,084 806,984,975

36.1 Current Year Tax Provision

Provision on tax has been calculated based on Income Tax Ordinance,1984 as amended upto 2014 by the Finance Act, considering the allowances and disallowances.

36.2 Deferred Tax Expenses/(Income)

Defferred tax expense/(income) for liability/(asset) has been calculated as per Bangladesh Accounting Standard 12.

37 Earning Per Share (EPS)

SIBL has issued 1:1 right share for an amount of Taka- 2,987,815,750 as approved in its 242nd Board Meeting held on 02 March 2011 by the Directors of the Board. Before right issue SIBL had a total capital of Taka- 2,987,815,750 as on 31.12.2010. The paid up capital was further enhanced by an amount of Taka- 418,294,200 and Taka-637,489,940, issued as bonus share for the year ended 31 December 2010 and 2012. Now the total paid up capital after right issue and issue of bonus shares amounts to Taka- 7,031,415,640 with a total no. of 703,141,564 shares having face value @ Taka- 10/share.

Net Pro�t after Tax 1,903,724,926 1,220,201,438

Number of ordinary shares outstanding 703,141,564 703,141,564

Earning Per Share (EPS) 2.71 1.74

37(a) Consolidated Earning Per Share (CEPS)

Net Pro�t after Tax 1,928,385,396 1,252,134,320

Number of ordinary shares outstanding 703,141,564 703,141,564

Consolidated Earning Per Share (CEPS) 2.74 1.78

Notes for Cash Flow Statement (Note-38 to Note-44)

38 Income from Investment

Investment pro�t receipt 13,943,265,660 13,629,421,075

Add: Opening pro�t receivable - -

Less: Closing pro�t receivable - -

13,943,265,660 13,629,421,075

38(a) Consolidated income from investment

Income from investment of SIBL 13,943,265,660 13,629,421,075

Income from investment of Subsidiaries of SIBL 40,969,207 23,171,187



Grand total 13,984,234,867 13,652,592,262

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39 Receipts from Other Operating Activities (Other than profit on sale of fixed assets)

Exchange income 620,832,724 471,294,388

Rent receipts 3,009,260 4,302,033

Telephone, fax, trank call charge recovered - 346

P & T charge recovered 3,189,701 17,181,862

Courier Charges Recovery & Others 5,466,248 5,263,672

Notice pay earnings 2,399,713 4,233,374

Miscellaneous income 63,566,963 34,852,434

Services & charges 165,161,327 119,726,503

SWIFT/ Return charge recovered 45,901,179 41,884,126

SWIFT/ Return charge recovered (OBU) - 201,839

Service charge on SIBL Cards 410,469 -

Income from sale of forms 382,475 374,924

910,320,059 699,315,503

39(a)Consolidated receipts from Other Operating Activities (Other than profit on sale of fixed assets)

Receipts from Other Operating Activities of SIBL 910,320,059 699,315,503

Receipts from other operating activities of Subsidiaries of SIBL 6,919,271 5,133,015



917,239,330 704,448,518

40 Payment to others

Rent (Of�ce) 130,560,396 125,238,963

Rent (Garage) 336,034 240,448

Rent (Godown) 2,302,051 2,145,557

Rates and Taxes 3,863,880 1,075,562

Insurance Premium for cash in counter 691,811 731,641

Insurance Premium for cash in transit 3,613,831 898,900

Insurance Premium for cash in safe/ vault 2,660,253 2,187,670

Insurance Premium on deposit 55,589,047 53,040,467

Insurance Premium for vehicle 1,376,681 1,225,885

Other Insurance 617,217 410,996

Lighting and Electricity Bill (Of�ce) 45,478,956 34,972,178

Lighting and Electricity Charges (Of�ce) 3,518,536 3,327,850

Lighting and Electricity Charges (Godown) 41,881 -

Water and Sewerage 2,603,395 2,350,404

Legal Expenses 8,142,318 7,926,138

Directors Fees and Meeting Expenses 6,397,857 4,264,575

Shariah Supervisory Fees & Expenses 342,050 254,362

Audit Fees 718,750 517,500

Repairs and Maintenance 26,998,779 17,889,007

Other Expenses (note: 33) 515,946,385 527,443,752

811,800,108 786,141,855

Financial Statem

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40(a) Consolidated payment to others


Payment to others- Subsidiaries 16,138,136 8,527,949


SIBL Investment Limited 115,067 98,590

827,938,243 794,669,804

41 Cash Increase/ Decrease in Other Assets Stock of stationery, stamps and printing materials etc. (valued at cost) 16,079,558 15,766,865 Advance rent and advertisement 138,546,785 138,411,134 Security Deposit 2,764,052 2,878,447 Branch Adjustments (SIBG) (Note: 9.1) 3,700,341,995 2,566,384,734 Suspense Accounts (Note: 9.2) 316,415,620 122,540,111 Capitalized Expenditure - 33,569 Other Repayments 314,840 183,008 Receivable from M/S. Stock & Bond and SIBL Securities Ltd. 19,171,583 17,976,725 Advance Income Tax 4,539,901,596 3,743,882,093 Receivable from SIBL Securities Limited 5,516,584 5,516,584 Receivable from SIBL Investment Limited 1,622,805 1,522,805 Protested Bills against Investment 357,148,000 368,594,750 Pro�t Receivable from Banks, NBFI and BD Govt. 354,627,390 372,918,333 Due from Off-shore Banking Unit 111,952,594 - Others (Note: 9.3) 1,334,396,796 1,137,284,247

10,898,800,197 8,493,893,405

Difference between (2014, 2013) (2,404,906,793) (1,451,122,782)Advance Income Tax 796,019,502 1,352,761,601 Net change in Other Assets (1,608,887,290) (98,361,181)

41(a) Consolidated cash increase/decrease in other assets

Social Islami Bank Limited 10,898,800,197 8,493,893,405 Cash Increase/ Decrease in Other Assets of subsidiaries 1,353,208,779 1,276,668,236

12,252,008,976 9,770,561,641

Difference between (2014, 2013) (2,481,447,336) (1,604,750,536)Advance Income Tax 801,113,468 1,356,696,826 Consolidated net change in Other Assets (1,680,333,868) (248,053,710)

42 Cash Increase/ Decrease in Other Liabilities

Adjusting A/C (Cr.) Balance 8,259,359 7,966,080 Other Payable 888,004 2,261,025 SIBL Employees’ PF 646,881,387 506,934,651 SIBL Employees’ Social Insurance 60,588,442 47,638,442 Compensation and Rent Suspense (note: 12.4) 751,102,267 461,185,089 Gratutity Fund Balance with SIBL Principal Br. 364,060,859 292,077,224 BEFTN Adjustment Account 9,160,769 25,731,488 ATM Settlement for Q-Cash 14,890,811 9,697,144 Mudaraba Pro�t Distribution (note: 12.7) 10,000,000 10,000,000

1,865,831,898 1,363,491,145

Financial Statem

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Cash Increase/ (Decrease) in Other Liabilities 502,340,754 372,594,105

Difference between (2014 & 2013) 502,340,754 372,594,105 Add: Transfer to Provision for Investment from Compensation (In Yrs. 2014 & 2013)

70,387,437 71,081,185

Add: Zakat expense transferred to Sadaka Fund 63,582,948

Less: Zakat distributed during the year 48,818,029 26,051,561

Less: Gratuity transferred & Paid during the year 1,953,633 52,056,322

Less: Adjustment of other provision made during the year 71,500 178,000

Less: Written off/ Waiver of investment during the year 465,600,131 30,769,817

119,867,846 334,619,590

42(a) Consolidated cash increse/decrease in other liabilities

Cash Increase/ Decrease in other liabilities of Social Islami Bank Limited 1,865,831,898 1,363,491,145

Cash Increase/ Decrease in Other Liabilities of subsidiaries 47,539,510 35,782,854

1,913,371,409 1,399,273,999

Difference between (2014, 2013) 514,097,410 398,909,437

Other changes in other liabilities of Social Islami Bank Limited (382,472,908) (37,974,515)

Net change in Other Liabilities-Social Islami Bank Limited 131,624,502 360,934,923

43 Cash and Cash Equivalent

Cash in Hand 975,608,716 1,266,962,343 Balance with Bangladesh Bank & Sonali Bank Limited (as agent of Bangladesh Bank)

11,145,075,318 7,627,790,250

Balance with Other Banks & Financial Institutions-in Bangladesh 11,985,559,055 10,934,993,013

Balance with Other Banks & Financial Institutions-outside Bangladesh 332,880,245 1,178,527,956

24,439,123,334 21,008,273,562

43(a) Consolidated Cash and Cash Equivalent

Social Islami Bank Limited. 24,439,123,334 21,008,273,562

Cash and Cash Equivalent of subsidiaries 66,798,053 29,381,371

SIBL Securities Limited. 66,777,080 29,379,751

SIBL Investment Limited. 20,973 1,620

24,505,921,387 21,037,654,933

44 Number of Employees

The number of employees engaged for the whole year or part thereof who received a total remuneration of Tk. 36,000 p.a or above were 1922.

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45 Audit Committee

The Board of Directors in its 328th meeting (Emergency) held on 30.12.2014 reconstituted the Board Audit Committee comprising with the following:

Sl. No. Name Status with the BankStatus with the

Committee

1 Md. Abdur Rahman Independent Director Chairman

2 Md. Kamal Uddin Director Member

3 Abdul Mohit Independent Director Member

4 Md. Abdur Razzaque Director Member

5 Major General Fazle Elahi Akbar (Retd.) Independent Director Member

The Board Audit Committee conducted 95 (ninety �ve) meetings in the previous years since inception in the year 2003 out of which 09 (nine) meetings were held in the year ended on 31 December 2014.

The Board Audit Committee evaluates the activities of the Bank as per guidelines laid down in the Bangladesh Bank BRPD Circular # 11 dated 27.10.2013. The Audit Committee reviews the internal control system, compliance of audit activities, developing adequate risk management & information technology.

The Audit Committee makes recommendation on the control, compliance and reporting aspects to achieve excellence in the areas, enhancing the effectiveness and reducing the risk of the business.

The Committee examinees the Annual Financial Statements before submission in the meeting of Board of Directors. The Committee extends all necessary cooperation in implementing the decisions of the Board of Directors and initiates steps to strengthen the audit activities as per working plan set out under section 7.3.a of Internal Control & Compliance Manual.

The Audit Committee also reviews the inspection reports submitted by the of�cials of Board Audit Cell on the assets position of the branches considered to be risky in nature in the meeting of the Board Audit Committee and advises the management to take necessary action and adhere to compliance position with a view to the interest of the Bank.

46 Related Party Disclosures

46.1 Name of the Firms / Business Organizations where the Directors of the Social Islami Bank Limited have got interest:

SL No

NameName of Firms/ Business Organizations Where the

Directors of SIBL have got interest

1 Major (Retd.)Dr. Md. Rezaul HaqueChairman

ChairmanLittle House LimitedActive Builders Limited

Sponsor DirectorUnited Hospital Limited

2 Md. Sayedur RahmanVice Chairman

Managing DirectorM/s Lodestar Fashions LimitedM/s Mid Asia Fashions Limited

3 Abdul Awal PatwaryDirector

ChairmanPatwary Cold Storage Ltd.Patwary Potato Flakes Ltd.Greentech Greenhouse Bangladesh Ltd.

Managing DirectorFaysal Shopping Complex Ltd.

ProprietorFaysal Traders

Financial Statem

entsa

nn

ua

l

re

po

rt

2

01

4

258

4 Anisul HaqueDirectorRepresentative of: Hamdard Laboratories (WAQF) Bangladesh. 291/1, Sonargaon Road, Dhaka

Director, Finance & AccountsHamdard Laboratories (WAQF) Bangladesh Limited

5 Alhaj Nasiruddin Director

Managing DirectorJ.A.N. Corporation Limited

ProprietorNams Trade CorporationNasim Trading Co.

6 Alhaj Sk. Mohammad Rabban AliDirector

Managing DirectorRabbani Trading Company LimitedShamlon Industries LimitedShama Poly Yarn Industries Limited

ProprietorS.R. Impex Co.

7 Abdul Jabbar MollahDirector

Managing DirectorJahanabad Sea Foods LimitedJalalabad Frozen Foods LimitedJabbar & Co. Limited

8 Md. Abdur RahmanIndependent Director

Nil

9 Abdul MohitIndependent Director

Nil

10 Md. Abdur RazzaqueDirector

Nil

11 Major General Fazle Elahi Akbar (Retd.)Independent Director

Nil

12 Mohammad Amin UddinDirectorMd. Abul Basher BhuiyanAlternate Director of Mohammad Amin Uddin

Nil

Managing DirectorStandard Business Limited

13 Md. Kamal UddinDirector

Managing DirectorChittagong Builders & Machinery Ltd.Merchant securities LimitedSifang securities Limited

DirectorHuman Resources Development Co., Ltd.Central Hospital (Pvt.) Ltd.ASM Chemical Industries Ltd.Universal Health Services & Research Ltd.

ChairmanMercantile Insurance Company ltd.

ProprietorCBM Consortium

46.2 Signi�cant contracts where Bank is a part and where in Directors have interest: Nil

Financial Statem

entsS

oc

ial Is

lam

i Ba

nk

Lt

d.

259

46.3 Lending Policies to Related Parties:

Lending to related parties is effected as per requirements of Section 27(1) of the Bank Companies Act, 1991.

A Related Party Transaction

Name of PartyName of the

DirectorRelationship

Nature of Investment

Outstanding Amount (Taka)

Status

Funded Liability

Active Builders LtdMd. Rezaul

HaqueChairman WC (Bai Muazzel) 616.20 lac UC

M/S Nasim Trading Co. Nasir Uddin Self WC (Bai Muazzel) 220.34 lac UC

M/S Jalalabad Frozen Food Ltd

Md. Abdul Jabbar Mollah

Managing Director

WC (Bai Muazzel) 700.00 lac UC

Hamdard University Bangladesh

Md. Anisul Haque SelfHPSM(Project

Finance)300.38 lac UC

SIBL Securities Ltd. N/A Subsidiary Quard 1000.00 lac UC

Non-Funded Liability

M/S Foysal TradersMr. Abdul Awal

PatwaryFather’s Firm Bank Guarantee 11.87 lac -

B Investment Policies to Related Parties

Lending to related parties is effected as per requirements of section 27 (1) of Bank Companies Act,1991

C Business other than Banking business with any related concern of the Directors as per Section 18 (2) of the Bank Companies Act, 1991: Nil

D Investments in the securities of Directors and their related concern: Nil

E Shares issued to Directors and Executives without consideration or exercisable at discount: Nil

47 Post Balance Sheet events (BAS-10)

No material events occurring after balance sheet date came to our notice, which could affect the values reported in the �nancial statements signi�cantly.

The Board of Directors has authorized the �nancial statements for issue on 28.02.2015 and recommended cash dividend @18% for the year ended 31 December 2014.

48 General

(i) Figures appearing in these �nancial statements have been rounded off to the nearest Taka.

(ii) The expenses, irrespective of capital or revenue nature, accrued/due but not paid have been provided for in the books of the Bank.

(iii) Figures of previous year have been rearranged wherever necessary to conform the current year’s presentation.

(iv) All types of �nancing made to the clients have been shown under the head ‘Investment’ whereas investment made in different shares and securities of Government and others companies are shown as investment shares and securities.

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Social Islami Bank LimitedOFF-SHORE BANKING UNIT (OBU) BALANCE SHEET

AS AT 31 DECEMBER 2014

2014 2013

USD Taka USD Taka

PROPERTY AND ASSETS

Cash Cash in hand (Including Foreign Currencies) - - - - Balance with Bangladesh Bank & its Agent Banks - - - - (Including Foreign Currencies)

- - - - Balance with other Banks and Financial Institutions

In Bangladesh - - - - Outside Bangladesh 2,267,902 176,782,919 550,145 42,773,780

2,267,902 176,782,919 550,145 42,773,780

Placement with Banks & other Financial Institutions - - - -

Investments in Shares & Securities - - - -

Government - - - - Others - - - -

- - - - Investments

General Investment etc. 53,949,465 4,205,360,326 27,615,281 2,147,088,153 Bills Purchased and Discounted - - - -

53,949,465 4,205,360,326 27,615,281 2,147,088,153

Fixed Assets including Premises, Furnitures and Fixtures

924 72,015 1,163 90,423

Other Assets 1,432,747 111,682,585 - - Non Banking Assets

Total Assets 57,651,038 4,493,897,845 28,166,590 2,189,952,357

LIABILITIES AND CAPITAL

Liabilities

Borrowing from Banks & other Financial Institutions 53,949,445 4,205,358,767 27,615,381 2,147,095,928

Deposits and Other Accounts 2,267,612 176,760,314 - -

Mudaraba Savings Deposits - - - - Mudaraba Term Deposits - - - - Other Mudaraba Deposits - - - - Al-Wadeeah Current & Other Deposit Accounts - - - - Bills Payable 2,267,612 176,760,314 - -

Deffered Tax Liabilities/ (Assets) - - - -

Total Liabilities 57,651,038 4,493,897,845 28,166,590 2,189,952,357

Annexure-G

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2014 2013

USD Taka USD Taka

Capital/Shareholders’ Equity

Paid-up Capital - - - - Statutory Reserve - - - - Foreign currency translation gain/(Loss) - - - - Retained Earnings - - - -

Total Shareholders’ Equity - - - -

Total Liabilities & Shareholders’ Equity 57,651,038 4,493,897,845 28,166,590 2,189,952,357

Off-Balance Sheet Items


Acceptances and Endorsements - - - - Irrevocable Letters of Credit (including Back to Back Bills) - - - - Letters of Guarantee - - - - Bills for Collection - - - - Other Contingent Liabilities - - - - Total - - - -

OTHER COMMITMENTS

Documentary credits and short term trade related transactions

- - - -

Forward assets purchased and forward deposits placed - - - - Undrawn note issuance and revolving underwriting facilities

- - - -

Undrawn formal standby facilities, credit lines and other commitments

- - - -

Total - - - - Total Off Balance Sheet Items including Contingent Liabilities - - - -

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Social Islami Bank LimitedOFF-SHORE BANKING UNIT (OBU)

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2014

Annexure-G

2014 2013

USD Taka USD Taka

Investment Income 3,193,628 248,943,254 406,334 31,592,497

Less: Pro�t paid on Deposits - - - -

Net Investment Income 3,193,628 248,943,254 406,334 31,592,497

Commission, Exchange and Brokerage - - - -

Other Operating Income 230,175 17,942,119 98,732 7,676,391

Total Operating Income 3,423,802 266,885,373 505,066 39,268,888

Salary & allowances 18,504 1,442,414 13,108 1,019,150

Rent & Utilities 609 47,500 556 43,220

Depreciation on �xed assets 239 18,641 299 23,237

Others 1,951 152,049 - -

Total Operating Expenses 21,303 1,660,604 13,963 1,085,607

Pro�t/(Loss) before Provision

Speci�c provisions for Investment - - - -

General Provisions for Investment - - - -

General Provisions for off-Balance Sheet exposure - - - -

Total Provision - - - -

Total Profit/(Loss) before Tax 3,402,499 265,224,768 491,103 38,183,281

Provision for Income Tax - - - -

Net Profit/(Loss) after Tax 3,402,499 265,224,768 491,103 38,183,281 Financial Statem

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Social Islami Bank LimitedOFF-SHORE BANKING UNIT (OBU)

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2014

Annexure-G

2014 2013

USD Taka Taka

Cash Flow from operating activities

Investment Income receipt 3,193,628 248,943,254 31,592,497 Pro�t paid on deposits - - - Dividend receipts - - - Fees & commission receipt 230,175 17,942,119 7,676,391 Cash payments to employees (18,504) (1,442,414) (1,019,150)Cash payments to suppliers - - - Income tax paid - - - Receipts from other operating activities - - - Payments for other operating activities (2,560) (199,549) (43,220)

Operating pro�t before changes in operating assets and liabilities 3,402,738 265,243,409 38,206,518

Changes in operating assets and liabilities

Statutory deposits - - - Net trading securities - - - Investments to other banks - - - Investment to customers (26,334,184) (2,058,272,172) (1,943,934,231)Other assets (1,432,747) (111,682,585) - Deposits from other banks 26,334,064 2,058,262,839 1,943,963,917 Deposits received from customers 2,267,612 176,760,314 - Other liabilities on account of customers - - - Trading liabilities - - - Other liabilities (1,287,548) (100,272,723) 4,512,913

Sub Total (452,803) (35,204,328) 4,542,599

A. Net Cash �ow from operating activities 2,949,935 230,039,081 42,749,117

Cash �ows from investing activities

Proceeds from sale of securities - - - Payment for purchases of securities - - - Proceeds from sale of �xed assets - - - Purchases of property, plant & equipments - 18,408 - Purchase/Sale of subsidiaries - - -

B. Net Cash �ows from investing activities - 18,408 -

Cash �ows from �nancing activities

Receipts from issue of debt instruments - - - Payments for redemption of debt instruments - - - Receipts from issue of right shares/ordinary share - - -

Dividend paid in cash - - -

C. Net Cash �ow from �nancing activities - - -

D. Net increase/(decrease) in cash & cash equivalents (A+B+C) 2,949,935 230,057,489 42,749,117

E. Cash and cash equivalents at the beginning of the year 550,145 42,773,780 24,663

F. Cash and cash equivalents at the end of the year (D+E) 3,500,080 2,722,831,269 42,773,780

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Social Islami Bank LimitedOFF-SHORE BANKING UNIT (OBU)Notes to the Financial Statements

FOR THE YEAR ENDED 31 DECEMBER 2014

Annexure-G

1 Status of the unit

The Bank obtained the Off-shore Banking Unit (“the Unit”) permission vide letter No. BRPD(P-3)744(119)/2010-4652, dated: 11 November, 2010. The Bank commenced operation of this unit from 02 May 2012. The Off-shore Banking Unit is governed under the rules and guidelines of the Bangladesh Bank. Its of�ce is located at SIBL Banani Branch, 48 Kemal Ataturk Avenue, Banani, Dhaka 1213.

1.1 Principal activities

The principal activities of the unit are to provide all kinds of commercial banking services to its customers through its off-shore Banking Units in Bangladesh.

2 Signi�cant accounting policies and basis of preparation of �nancial statements

2.1 Basis of accounting

The Off-shore Banking Unit maintains its accounting records in USD from which accounts are prepared according to the Bank Companies Act, 1991, Bangladesh Accounting Standards, Bangladesh Financial Reporting Standard (BFRS) and other applicable directives issued by The Bangladesh Bank, in particular, Banking Regulations and Policy Department (BRPD) Circular No. 15 (09 November 2009).

2.2 Use of estimates and judgments

The preparation of �nancial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

2.3 Foreign currency transaction

a) Foreign currencies translation

Foreign currency transactions are converted into equivalent Taka using the ruling exchange rates on the dates of respective transactions as per BAS-21” The Effects of Changes in Foreign Exchange Rates”. Foreign currency balances held in US Dollar are converted into Taka at weighted average rate of inter-bank market as determined by Bangladesh Bank on the closing date of every month. Balances held in foreign currencies other than US Dollar are converted into equivalent US Dollar at buying rates of New York closing of the previous day and converted into Taka equivalent.

b) Commitments

Commitments for outstanding forward foreign exchange contracts disclosed in these �nancial statements are translated at contracted rates. Contingent liabilities/commitments for letter of credit and letter of guarantee denominated in foreign currencies are expressed in Taka terms at the rates of exchange ruling on the balance date.

c) Translation gains and losses

The resulting exchange transaction gains and losses are included in the pro�t and loss account, except those arising on the translation of net investment in foreign subsidiary.

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Annexure-G

Cash �ow statement

Cash �ow statement has been prepared in accordance with the Bangladesh Accounting Standard-7 “ Cash Flow Statement” under direct method as recommended in the BRPD Circular No. 14, dated June 25, 2003 issued by the Banking Regulation & Policy Department of Bangladesh Bank.

2.4 Reporting period

These �nancial statements cover from January 01 to December 31, 2014.

2.5 General Investments

a) General investments of Off-shore Banking Units are stated in the balance sheet on net basis.b) Pro�t is calculated on a daily product basis but charged and accounted for on accrual basis. Pro�t is not charged on bad and loss investments as per guidelines of the Bangladesh Bank. Records of such interest amounts are kept in separate memorandum accounts.

2.6 A provision is recognised in the balance sheet when the unit has a legal or constructive obligation as a result of a past event and it is probable that an out�ow of economic bene�t will be required to settle the obligations, in accordance with the BAS 37 “Provisions, Contingent Liabilities and Contingent Assets”.

2.7 Pro�t income

In terms of the provisions of the BAS-18 “Revenue”, the pro�t income is recognized on accrual basis.

Fees and commission income

Fees and commission income arises on services provided by the units are recognized on a cash receipt basis. Commission charged to customers on letters of credit and letters of guarantee are credited to income at the time of effecting the transactions.

2.8 Profit paid and other expenses

In terms of the provisions of the BAS - 1 “Presentation of Financial Statements” interest and other expenses are recognized on accrual basis.

2.9 Allocation of common expenses

Operating expenses in the nature of salary, rent, rates and taxes, management expenses, printing stationery, etc. are allocated as common expense rather separately accounted for in the �nancial statements.

2.10 General

a) These �nancial statements are presented in BDT, which is the Bank’s functional currency. Figures appearing in these �nancial statements have been rounded off to the nearest BDT.

b) Assets and liabilities & income and expenses have been converted into Taka currency @ US$1 = Taka 77.95, i.e weighted average closing rate as at 31st December 2014.

c) Fixed assets of this unit are appearing in the books of the main operation of the bank and depreciation is also charged to Pro�t & loss Accounts of the main operation of the bank.

Social Islami Bank LimitedOFF-SHORE BANKING UNIT (OBU)Notes to the Financial Statements

FOR THE YEAR ENDED 31 DECEMBER 2014

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Social Islami Bank LimitedHIGHLIGHTS OF PERFORMANCE (Only Bank-Solo basis)

Annexure-H

(Amount in Taka)

SL no. Particulatars 2014 2013

1 Paid up Capital 7,031,415,640 7,031,415,640

2 Total Capital ( Core + Supplementary) 13,078,262,485 11,623,517,680

3 Capital Surplus/(De�cit) 1,566,311,985 1,640,101,680

4 Capital Adequacy Ratio (CAR) 11.36% 11.64%

5 Total Assets 153,737,467,324 126,616,564,745

6 Total Deposit 124,535,009,515 102,104,479,583

7 General Investment 107,899,959,311 85,922,331,926

8 Total Contingent Liabilities and Commitments 32,161,854,799 30,470,229,787

9 Investment-Deposit (ID) Ratio ( % ) 89.52% 86.78%

10 Percentage of classi�ed investment against total investments 4.56% 5.35%

11 Pro�t before Tax and Provision 3,964,274,678 2,894,061,722

12 Pro�t after Tax and Provision 1,903,724,926 1,220,201,438

13 Amount of classi�ed investment 4,921,569,000 4,593,330,630

14 Provisions kept against classi�ed investment 1,578,585,257 1,692,052,956

15 Provisions surplus - -

16 Cost of Deposits 7.66% 9.04%

17 Pro�t Earning Assets 128,042,124,297 106,574,036,365

18 Non-Pro�t Earning Assets 25,695,343,026 20,042,528,379

19 Return on Investment in Securities 3.80% 3.81%

20 Return on average Assets (ROA) 2.36% 1.67%

21 Return on equity (ROE) 15.68% 11.01%

22 Income from Investment in Securities 296,946,697 325,466,389

23 Earning Per Share (EPS) 2.71 1.74

24 Consolidated Earning Per Share (CEPS) 2.74 1.78

25 Net Income Per Share 2.71 1.74

26 Price Earning Ratio (Times) 5.02 7.66 Financial Statem

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FinancialStatements

of

SIBL Securities Ltd. (a wholly owned subsidiary of SIBL)


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274

We have audited the accompanying Financial Statements of SIBL Securities Limited, which comprises the Statement of Financial Position as of 31 December, 2014 and the related Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended and a summary of signi�cant accounting policies and other explanatory notes.

Management ‘s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these �nancial statements in accordance with Bangladesh Accounting Standards (BASs) and Bangladesh Financial Reporting Standards (BFRSs), the Companies Act, 1994, the Securities of Exchange Rules, 1987 and other applicable laws and regulations. The responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of �nancial statements that are free of material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ ResponsibilityOur responsibility is to express an independent opinion on these �nancial statements based on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the �nancial statements are free of material misstatement.

An audit involves from performing procedures to obtain audit evidence about the amounts and disclosures in the �nancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the �nancial statements, whether due to fraud and error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of �nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes assessing the accounting principles used and signi�cant estimates made by the management, as well as evaluating the overall �nancial statements presentation. We believe that the audit evidence we have obtained is suf�cient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the �nancial statements, prepared in accordance with Bangladesh Accounting Standards (BASs) and Bangladesh Financial Reporting Standards (BFRSs), give a true and fair view of the state of Company’s affairs as of 31 December, 2014 and of the results of its operations and its cash �ows for the year then ended and comply with the Companies Act, 1994, he Securities of Exchange Rules, 1987 and other applicable laws and regulations.

Further to our opinion in the above paragraph, we state that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and made due veri�cation thereof;

b) In our opinion, proper books of account as required by law have been kept by SIBL Securities Limited, so far as it appeared from our examination of those books;

c) The Company’s Statement of Financial Position and Statement of Comprehensive Income dealt with by the report are in agreement with the books of account; and

d) The expenditure incurred was for the purposes of the Company’s business.

Dated: Dhaka KAZI ZAHIR KHAN & CO.28 February, 2015 Chartered Accountants.


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SIBL Securities LimitedStatement of Financial Position

as at 31 December, 2014

Note2014 2013

Taka TakaASSETSNon-current assetsProperty, plant & equipment less acc. depreciation 3.00 5,807,745 6,579,665 Intangible assets 4.00 2,025,008 2,198,296 Capital expenditure-in-progresss 5.00 4,139,339 4,139,339 Investment in Equity of Strategic Company 6.00 1,027,650,000 1,027,650,000

1,039,622,092 1,040,567,300 Current AssetsAdvances, deposits & pre-payments 7.00 13,154,258 14,223,286 Receivable from client 279,019,390 186,408,076 Receivables from regulators 8.00 252,361 30,732,609 Other receivables 9.00 20,585,532 7,397,224 Investment in stock dealer activities 15,547,286 13,157,091 Cash & cash equivalents 10.00 86,780,085 41,730,275

415,338,912 293,648,561 Total Assets 1,454,961,004 1,334,215,861

EQUITY AND LIABILITIESCapital & reserveShare capital 11.00 1,230,000,000 1,230,000,000 General reserve 12.00 2,790,194 1,864,081 Retained earnings 13.00 28,515,728 3,740,171

1,261,305,922 1,235,604,252 Long term liabilitiesHPSM investment loan from SIBL 14.00 100,000,000 50,000,000 Deferred tax liability/(assets) 15.00 1,071,350 -

101,071,350 50,000,000 Current liabilitiesPayable to Social Islami Bank Limited 5,516,584 5,516,584 Payable to regulators 16.00 4,816,476 458,997 Payable to client 41,178,012 31,275,155 Other provisions 17.00 19,269,896 7,611,683 Pro�t payable on investment borrowing - 1,222,221 Provision for tax 18.00 21,802,764 2,526,970

92,583,732 48,611,610

Total equity & liabilities 1,454,961,004 1,334,215,861

The annexed notes 1 to 25 form an integral part of these �nancial statements.

Chief Executive Officer Director Director Director

This is the Statement of Financial Position referred to in our report of even date.

Dated: Dhaka28 February, 2015


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SIBL Securities LimitedStatement of Comprehensive Income

for the year ended 31 December, 2014

ParticularsNote

2014 2013

Taka Taka

Operating incomeBrokerage commission 19.00 36,568,217 29,545,581 Pro�t earned on MTDR & bank account 20.00 3,315,721 4,363,512 Pro�t on margin loan 40,969,207 23,171,187 Capital gain on sale of share 2,582,968 - Cash dividend from investment in share 516,040 35,000 Other income 21.00 3,603,550 734,504

Total operating income 87,555,703 57,849,784

Less: ExpensesOperating expenses 22.00 21,715,698 15,794,736

Operating pro�t/(loss) before reserve 65,840,005 42,055,048

Less: Other provisions & reserveProvision for impairment of margin loan 12,680,995 4,484,995 Provision for dimunition in value of investment 272,175 317,459 General reserve 926,113 1,121,649 Total provisions & reserve 13,879,283 5,924,103

Operating profit/(loss) before tax 51,960,722 36,130,946

Less: Financial expenses 23.00 6,838,020 1,749,268

Profit/(loss) before tax 45,122,702 34,381,678

Provision for taxation :Current tax 19,275,794 2,350,179 Deferred tax 1,071,351 -

20,347,145 2,350,179

Operating profit/(loss) after tax 24,775,557 32,031,499






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Particulars Share capital General reserve Retained earnings Total

Opening balance at 01 January, 2013 1,230,000,000 742,432 (28,291,328) 1,202,451,104 Add: Net pro�t/loss during the year - - 32,031,499 32,031,499 Add: General reserve - 1,121,649 - 1,121,649

Balance as at 31 December, 2013 1,230,000,000 1,864,081 3,740,171 1,235,604,252

Particulars Share capital General reserve Retained earnings Total

Opening balance at 01 January, 2014 1,230,000,000 1,864,081 3,740,171 1,235,604,252 Add: Net pro�t/loss during the year - - 24,775,557 24,775,557 Add: General reserve - 926,113 - 926,113

Balance as at 31 December, 2014 1,230,000,000 2,790,194 28,515,728 1,261,305,922

The accounting policies and other notes form an integral part of the �nancial statements.

SIBL Securities LimitedStatement of Changes in Equity






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SIBL Securities LimitedStatement of Cash Flows


2014 2013

Taka TakaCash �ows from operating activities:Collections from operations 104,847,643 28,907,061 Payment to regulators, employess & others (102,133,026) (116,308,962)

Net cash in�ow/(out�ow) from operating activities (A) 2,714,617 (87,401,901)

Cash �ows from investing activities:Increase in �xed assets (726,787) (3,517,820)Increase in intangible assets (100,000) (200,000)

Net cash used in investing activities (B) (826,787) (3,717,820)

Cash �ows from �nancing activities:HPSM investment loan from SIBL 50,000,000 50,000,000 Short term loan from Social Islami Bank Limited - 3,641,237 Financial expenses (6,838,020) (1,749,268)

Net cash from �nancing activities (C ) 43,161,980 51,891,969

Net cash in�ow for the year D=(A+B+C) 45,049,810 (39,227,752)

Opening cash & cash equivalents (E ) 41,730,275 80,958,027

Closing cash & cash equivalents (D+E) 86,780,085 41,730,275






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SIBL Securities LimitedNotes to the Financial Statements


1.00 Signi�cant accounting policies and other material information:

1.01 Legal status of the company:

SIBL Securities Limited was incorporated as a public limited company under the Companies Act 1994 vide certi�cation of incorporation no. C - 85876/10 dated 20 July, 2010 and obtained its certi�cate of commencement of business on the same day. The company has started its operation both under DSE and CSE membership on 04 January, 2012 and 05 January, 2012 respectively.

1.02 Address of registered of�ce and principal place of business:

The principal place of business is the Registered Of�ce at 15, Dilkusha C/A, Dhaka-1000.

1.03 Nature of business activities:

The principal objectives of the Company for which it was established are to carry on the business of stock brokers, dealers in relation to shares and securities dealings and other services as mentioned in the Memorandum and Articles of Association of the company.

2.00 Signi�cant accounting policies:

2.01 Basis of preparation of �nancial statements:The Financial Statements have been prepared on a going concern basis under historical cost convention in accordance with the Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS), Companies Act 1994 and other applicable laws and regulations.

2.02 Accounting Convention and Assumption:The �nancial statements are prepared under the historical cost convention.

2.03 Accounting Records:The entity has been maintaining all the required books of accounts as are necessary for the accounts.

2.04 Legal Compliance:The �nancial statements have been prepared and the disclosures of information were made in accordance with the requirements of the Companies Act, 1994 and IASs adopted by the ICAB. On the basis of these regulations, Bangladesh Accounting Standards (BAS) & Bangladesh Financial Reporting Standards (BFRS) were applied with the applicable standards at the Statement of Financial Position date.

2.05 Critical Accounting Estimates, Assumptions and Judgments:The preparation of the �nancial statements are in conformity with BFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies.

2.06 Going Concern:The Company has adequate resources to continue in operation for the foreseeable future. For this reasons the directors continue to adopt going concern basis in preparing the �nancial statements. The current credit facilities and resources of the Company provides suf�cient fund to meet the present requirements of existing business.

2.07 Cash & Cash Equivalents:Cash and cash equivalents include cash in hand, cash at banks, term deposits which are available for use by the Company without any restrictions. There is an insigni�cant risk of change in value of the same.

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2.08 Cash Flow Statement:Statement of Cash Flow is prepared principally in accordance with BAS-7: Cash Flow Statement and the cash �ows from operating activities have been presented under direct method.

2.09 Comparative:Financial statements are presented as BAS-1 ‘‘Presentation of Financial Statements” and previous year’s �gures have been restated due to changes in some accounting policies as per BAS-8 ‘‘Accounting Policies, Changes in Accounting Estimates and Errors’’.

2.10 Components of �nancial statements:

According to International Accounting Standard (IAS)-1, as adopted by ICAB as BAS-1 “Presentation of Financial Statements” the complete set of Financial Statements includes the following components:i) Statement of Financial Position;ii) Statement of Comprehensive Income;iii) Statement of Cash Flows;iv) Statement of Changes in Equity; and v) Notes to the Financial Statements.

2.11 Revenue income:

Revenue Income comprises of Brokerage Commission earned and others as stated in accounts.

2.12 Revenue recognition:

Revenues are generated and recognized upon raising invoices against services rendered as broker, commission receipts from clients at the time when services are completed.

2.13 Fixed assets, depreciation and amortization:

Assets have been shown at cost less depreciation as per BAS-16 “Property, Plant & Equipments”. Depreciation has been charged on reducing balance method. Depreciation on addition of assets has been charged from the date of purchase. Rate of depreciation are as under:

Particulars Rate (%)Of�ce Equipment 20Of�ce Decoration 10Furniture & Fixture 10

Intangible assets have been shown at cost less amortization as per BAS-38 “Intangible Asset”.Amortization has been charged on straight-line method and on addition of assets from the date of purchase. Amortization period is 10 years.

2.14 Reporting currency:

The �gures in the Financial Statements represent Bangladesh Currency (Taka), which have been rounded off to the nearest Taka.

2.15 General:

Previous years �gures have been rearranged wherever necessary to con�rm to the current years presentation.

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2014 2013

Taka Taka3.00 Property, plant & equipment:

Opening balance 8,442,593 4,924,773 Add: Addition during the year (annexure-A) 726,787 3,517,820 Less: Disposal during the year - - Closing balance (A) 9,169,380 8,442,593

Less: Accumulated depreciation:Opening balance 1,862,928 549,916 Depreciation charged during the year (annexure-A) 1,498,707 1,313,012 Disposal/adjustment during the year - - Closing balance (B) 3,361,635 1,862,928

Written down value (A-B) 5,807,745 6,579,665

4.00 Intangible assets:

Opening balance 2,720,384 2,520,384 Add: Addition during the year (annexure-A) 100,000 200,000 Less: Disposal during the year - - Closing balance (A) 2,820,384 2,720,384

Less: Accumulated depreciation:Opening balance 522,088 252,038 Depreciation charged during the year (annexure-A) 273,288 270,050 Disposal/adjustment during the year - - Closing balance (B) 795,376 522,088

Written down value (A-B) 2,025,008 2,198,296

5.00 Capital expenditure-in-progresss:

This is arrived at as follows:

Opening balance 4,139,339 - Add: Addition during the year - 4,139,339 Closing balance 4,139,339 4,139,339

The above amount includes percentage of physical completion of work. After completion of the entire work, it is capitalized as �xed assets. Details are shown in Annexure-B

6.00 Investment in Equity of Strategic Company:

Chittagong Stock Exchange Ltd. (CSE) 307,000,000 307,000,000 Dhaka Stock Exchange Ltd. (DSE) 720,650,000 720,650,000 Total 1,027,650,000 1,027,650,000

The company acquired a Membership of Chittagong Stock Exchange Ltd., Membership no: 142 dated 26 July, 2010 at a cost of Tk. 307,000,000 from Social Islami Bank Limited on 30 December, 2010 which was subscribed by Social Islami Bank Limited earlier in the name of SIBL Securities Ltd. Further, on 13-04-2011 the company purchased a membership of Dhaka Stock Exchange Ltd. (Membership No. 94) from Arafat Securities Ltd. at a cost of Tk.710,000,000. A transfer fees of Tk.10,650,000 was also paid to RJSC for the said membership. Later on, after demutualization of the both Stock Exchanges, the Company obtained TREC Certi�cates of DSE & CSE against their Membership and received 2,886,042 Shares out of total allotted 7,215,106 Shares of DSE and also received 1,714,932 Shares of CSE out of total allotted 4,287,330 Shares of CSE.

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Taka Taka7.00 Advances:

Advance income tax (Note-7.01) 12,100,258 7,006,294 Advance of�ce rent - 1,162,992 Advance for �oor space at Nikunja, DSE Tower 850,000 850,000 Security deposit (Note-7.02) 204,000 5,204,000 Total 13,154,258 14,223,286

7.01 Advance income tax:

Advance income tax-DSE 9,057,050 4,885,109 Advance income tax-CSE 969,627 476,665 Advance income tax-CSE dealer 1,746 84 Advance income tax-DSE dealer 21,190 6,495 Advance income tax on pro�t of MTDR A/c. 1,604,813 1,472,067 Advance income tax on pro�t of other bank A/c. 352,728 158,874 Advance income tax on cash dividend-dealer 93,104 7,000 Total 12,100,258 7,006,294

7.02 Security deposit:

Security deposit with CDBL 200,000 200,000 Security deposit with DSE - 5,000,000 Security deposit with BTCL 4,000 4,000 Total 204,000 5,204,000

8.00 Receivables from regulators:

Receivable from DSE 216,640 28,128,668 Receivable from CSE 35,721 2,603,941 Total 252,361 30,732,609

9.00 Other receivables:

Pro�t receivable Bai-Muajjel (unrealized) 20,350,676 7,362,078 Other receivable Income 149,982 - Pro�t accrued on MTDR 84,874 35,146 Total 20,585,532 7,397,224.00

10.00 Cash & bank balances:

Cash in hand 552,080 239,657 Petty cash account 40,422 10,347 Prime Bank Ltd. A/c.- 10831030026313 63,175 9,359,681 Consolidated Customer & DSE settlement A/c- AlBL -3332 62,966,359 19,654,392 SIBLSL Operational Bank A/c (Exp)-SIBL-56882 1,849,393 48,499 SIBLSL dealer operation A/c -One-13-569 981,138 115,674 SIBLSL-Public Issue Application A/c. with SIBL-02-1360001846 2,093,906 - Cash of under processed BO Form 80,000 - MTDR-1.00 cr no. 10125954/5301271924 11,278,943 10,548,726 MTDR-1.00 cr no. 10125953/5301271913 5,000,000 - MTDR-15.00 lac no. 10077929/5301262608 1,874,669 1,753,299 Total 86,780,085 41,730,275

11.00 Share capital:

Authorized capital:25,000,000 shares of Tk. 100 each 2,500,000,000 2,500,000,000

Issued, subscribed and paid-up capital:12,300,000 shares of Tk. 100 each 1,230,000,000 1,230,000,000

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11.01 Shareholding position:

Shareholders % of shareholdings No. Shares No. Shares1 Social Islami Bank Limited 100.000% 12,299,990 12,299,990 2 Alhaj Nasiruddin 0.000% 1 1 3 Mr. Md. Sayedur Rahman 0.000% 1 1 4 Major (Retd.) Dr. Md. Rezaul Haque 0.000% 1 1 5 Alhaj Sultan Mahmood Chowdhury 0.000% 1 1 6 Mr. Abdul Awal Patwary 0.000% 1 1 7 Hamdard Laboratories (Waqf) Bangladesh

Represented by: Mr. Anisul Hoque 0.000% 1 1

8 Mrs. Nargis Mannan 0.000% 1 1 9 Mr. Kamaluddin Ahmed 0.000% 1 1 10 Alhaj Sk. Mohammad Rabban Ali 0.000% 1 1 11 Mr. A. Jabbar Mollah 0.000% 1 1

100.000% 12,300,000 12,300,000

12.00 General reserve: 1,154,763 742,432

Opening balance 1,864,081 742,432 Add: Reserve increase /(decrease) for the year 926,113 1,121,649 Closing balance 2,790,194 1,864,081

The Board of SIBL Securities Ltd. has decided to create a general reserve @1% on total receivable from clients at the end of each year and add or adjustment with general reserve will depend on size of unrealized loss against outstanding margin loan and realization for the respective year. During the year, the adjustment made for creating provisions separately for impairment of margin loan and diminution in value of investment in shares.

13.00 Retained earnings:

Opening balance 3,740,171 (28,291,328)Add: Pro�t/(loss) during the year 24,775,557 32,031,499 Closing balance 28,515,728 3,740,171

14.00 HPSM investment loan from SIBL:

Opening balancePrincipal amount 50,000,000 - Payable pro�t amount 1,222,221 -

51,222,221 - Add: Addition during the yearPrincipal amount 90,000,000 70,000,000 Payable pro�t amount 5,594,724 1,674,443

95,594,724 71,674,443 Less: Adjustment made during the ear Principal amount 40,000,000 20,000,000 Payable pro�t amount 6,816,945 452,222

46,816,945 20,452,222 Closing balancePrincipal amount 100,000,000 50,000,000 Payable pro�t amount - 1,222,221

100,000,000 51,222,221

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15.00 Deferred tax liability/(assets) - - Opening Balance 1,071,350 - Add: Addition during the year 1,071,350 -

16.00 Payable to regulators:

Payable to DSE 3,682,686 30,538 Payable to CSE 540,843 - Payable to CSE for dealer activities 330,239 - Payable to CDBL 262,708 428,459 Total 4,816,476 458,997

17.00 Others provisions:

Provision for impairment of margin loan (Note-17.01) 17,165,990 4,484,995 Provision for diminution in value of investment in shares (Note-17.02) 589,634 317,459 Accrued expenses (Note-17.03) 1,404,272 1,657,648 Payable to service providers 30,000 104,084 Payable to suppliers - 784,397 Liabilities for BO under process 80,000 - Security deposit payable - 263,100 Total 19,269,896 7,611,683

17.01 Provision for Impairment of Margin loanOpening Balance 4,484,995 - Add: Addition/(adjustment) during the year 12,680,995 4,484,995 Closing Balance 17,165,990 4,484,995

17.02 Provision for diminution in value of investment in sharesOpening Balance 317,459 - Add: Addition/(adjustment) during the year 272,175 317,459 Closing Balance 589,634 317,459

In compliance with the guidelines of the BSEC vide Circular No. SEC/CMRRCD/2009-193/155 dated 09 December, 2013 and No. SEC/CMRRCD/2009-193/166 dated 12 January, 2015 the management of the Company has decided to create provisions @100% for impairment of margin loan and @ 20% for diminution in value of investment in shares through dealer account separately.

17.03 Accrued expenses:

Audit fees 17,250 17,250 Provision for of�ce rent 173,581 520,743 Provision for utility bill 8,900 281,255 Provision for Telephone bill 2,285 - Provision for PF contribution by company 530,489 263,356 Provision for PF contribution by employee 530,489 263,356 Adjustment A/c. to forfeit PF contribution by Company 12,547 - Provision for SMS bill 1,204 29,588 Payable to DSE for investor protection fund - 2,153 VAT payable on Directors meeting attendance fees 39,000 70,500 VAT payable on suppliers 26,058 117,936 VAT payable on of�ce rent 46,869 78,111 Tax payable on salary 15,600 13,400 Total 1,404,272 1,657,648

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18.00 Provision for tax:

Opening balance 2,526,970 176,791 Add: Current year tax 14,993,523 2,350,179

Short provision of preceding years Tax 4,282,271 - Closing balance 21,802,764 2,526,970

19.00 Brokerage commission:

Brokerage commission-DSE 33,451,084 27,021,295 Brokerage commission-CSE 3,117,133 2,524,286 Total 36,568,217 29,545,581

20.00 Pro�t earned on MTDR & bank account:

Pro�t on MTDR with SIBL 1,377,185 3,366,593 Pro�t on A/c.10831030026313 (Prime Bank) 70,568 111,536 Pro�t on A/c.0021220003332 (Al Arafah) 1,803,815 753,237 Pro�t on A/c. 13000000569 (One Bank) 61,432 132,146 Pro�t on A/c. 0021360001846 (SIBL) 2,721 - Total 3,315,721 4,363,512

21.00 Other income:

Income from CDBL services 150,000 - Loan processing fees 16,800 31,200 B.O. opening charges 145,800 98,000 B.O. maintenance charges 165,000 74,535 Other income 3,125,950 530,769 Total 3,603,550 734,504

22.00 Operating expenses:

Salary & allowances (Note-22.01) 9,427,449 6,243,499 License, fees & renewals (Note-22.02) 3,243,790 3,020,983 Directors board meeting attendance fees (Note-22.03) 586,500 540,500 Rent, rates & taxes (Note-22.04) 2,270,439 598,854 Communications expenses (Note-22.05) 666,229 741,676 Printing & stationery (Note-22.06) 664,975 546,408 Entertainment & public relation 393,343 215,464 Repair & maintenances (Note-22.07) 110,437 138,853 Of�ce expenses (Note-22.08) 219,842 537,704 Legal & professional fees (Note-22.09) 17,250 17,250 Business promotional expenses 2,012,060 1,610,483 Branding and business development exp. 311,589 - Training Expenses 19,800 - Depreciation 1,498,707 1,313,012 Amortization 273,288 270,050 Total 21,715,698 15,794,736

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Taka Taka22.01 Salary & allowances:

Salary & allowances 7,928,249 4,827,699 Festival bonus 569,200 400,800 Compensation on death 30,000 - Special allowance to deputation executives 900,000 1,015,000 Total 9,427,449 6,243,499

22.02 License, fees & renewal:

Stock broker licence renewal fees 20,000 20,000 Stock dealer licence renewal fees 20,000 20,000 Renewal fees - 4,000 TREC licence renewal fees-DSE 50,000 - TREC licence renewal fees-CSE 50,000 - Regulatory expenses with RJSC 1,190 3,846 Of�ce expenses incurred for RJSC 40,000 25,000 Non-Judicial stamp 20,110 4,990 Trade license fees & expenses 19,000 14,610 TWS fees to DSE 15,000 20,000 Authorized representative license and renewal fees 21,771 6,350 Annual subscription fees to CSE - 5,000 Annual subscription fees to DSE 4,700 4,700 CDBL connection Fees 4,500 6,000 CDBL demat fees - 5,106 CDBL settlement transfer fees 791,073 1,207,988 CDBL bulk transfer fees - 349 CDBL corporate action 2,683 20,999 CDBL pledging charges 4,123 - Howla charges-DSE 322,060 249,520 Howla charges-CSE 24,620 33,062 Laga charges-DSE 1,680,329 1,261,515 Laga charges-CSE 143,009 101,593 Howla charges-CSE dealer 148 - Laga charges-CSE dealer 583 - Howla charges-DSE dealer 780 374 Laga charges-DSE dealer 5,957 2,598 Investor protection fund DSE 1,638 3,162 Investor protection fund-CSE 516 221 BO A/c. maintenance fees - - Total 3,243,790 3,020,983

22.03 Directors board meeting attendance fees:

Directors board meeting attendance fees 510,000 470,000 VAT on Directors meeting attndance fees 76,500 70,500 Total 586,500 540,500

22.04 Rent, rates & taxes:

Of�ce rent 2,082,972 520,743 VAT on of�ce rent 187,467 78,111 Total 2,270,439 598,854

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Taka Taka22.05 Communications expenses:

Telephone & mobile bill 51,079 50,142 Internet expenses 90,000 90,000 Courier & postage 425 856 Conveyance & travel expenses 27,725 46,308 Expenses incurred for telephone line - 9,850 Connectivity charges 12,000 1,020 Network connectivity & installation charges 480,000 517,500 SMS bill 5,000 26,000 Total 666,229 741,676

22.06 Printing & stationery:

Printing 45,350 145,000 Stationery 555,625 318,808 Toner/cartridge 64,000 82,600 Total 664,975 546,408

22.07 Repair & maintenances:

Repair & maintenances 48,438 79,020 Computer maintenances 6,510 9,820 Labour bill 2,400 13,300 Software maintenances 22,100 20,482 Of�ce maintenances 30,989 16,231 Total 110,437 138,853

22.08 Office expenses:

Cookeries - 16,050 VAT - 300 Advertisement 23,450 188,325 Drinking water bill 16,720 15,395 Water & Sewerage bill 25,735 2,930 Newspaper & periodicals 14,297 3,883 Electrical goods 8,718 40,589 Of�ce inauguration expenses - 30,232 Electricity & generator bill 130,922 240,000 Total 219,842 537,704

22.09 Legal & professional fees:

Audit fees 17,250 17,250 Total 17,250 17,250

23.00 Financial expenses:

Pro�t paid on loan 6,816,945 1,711,110 Bank charges 21,075 38,158 Total 6,838,020 1,749,268

24.00 Post balance sheet event:

The company has started its operation both under DSE and CSE membership on 04 January 2012 and 05 January 2012 respectively. No material event had occurred after the Balance Sheet date, which could substantially effect the values reported in the Financial Statements.

25.00 Related party disclosure:

As per BAS 24 there is no related party transaction other than those with SIBL as mentioned in note no.14.

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We have audited the accompanying Financial Statements of SIBL Investment Limited, which comprises the Statement of Financial Position as of 31 December, 2014 and the related Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended and a summary of signi�cant accounting policies and other explanatory notes.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these �nancial statements in accordance with Bangladesh Accounting Standards (BASs) and Bangladesh Financial Reporting Standards (BFRSs), the Companies Act, 1994, the Securities & Exchange Rules, 1987 and other applicable laws and regulations. The responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of �nancial statements that are free of material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ ResponsibilityOur responsibility is to express an independent opinion on these �nancial statements based on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the �nancial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the �nancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the �nancial statements, whether due to fraud and error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of �nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes assessing the accounting principles used and signi�cant estimates made by the management, as well as evaluating the overall �nancial statements presentation. We believe that the audit evidence we have obtained is suf�cient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the �nancial statements, prepared in accordance with Bangladesh Accounting Standards (BASs) and Bangladesh Financial Reporting Standards (BFRSs), give a true and fair view of the state of Company’s affairs as of 31 December, 2014 and of the results of its operations and its cash �ows for the year than ended and comply with the Companies Act, 1994 the Securities & Exchange Rules, 1987 and other applicable laws and regulations.

Further to our opinion in the above paragraph, we state that:a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the

purpose of our audit and made due veri�cation thereof;

b) In our opinion, proper books of account as required by law have been kept by SIBL Investment Limited, so far as it appeared from our examination of those books;

c) The Company’s Statement of Financial Position and Statement of Comprehensive Income dealt with by the report are in agreement with the books of account; and

d) The expenditure incurred was for the purposes of the Company’s business.

Dated: Dhaka KAZI ZAHIR KHAN & CO.28 February, 2015 Chartered Accountants.


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SIBL Investment LimitedStatement of Financial Position


Note2014 2013

Taka Taka

ASSETS

Non-current assets - -

- -

Current assets

Cash & cash equivalents 3.00 249,954,510 249,956,077

249,954,510 249,956,077

Total assets 249,954,510 249,956,077

EQUITY AND LIABILITIES

Capital & reserve

Share capital 4.00 250,000,000 250,000,000

Retained earnings (1,704,045) (1,588,978)

248,295,955 248,411,022

Current liabilities

Payable to Social Islami Bank Limited 1,622,805 1,522,805

Accrued expenses 5.00 30,750 17,250

Provision for tax 5,000 5,000

1,658,555 1,545,055

Total equity & liabilities 249,954,510 249,956,077


Chief Executive Officer Director Director




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This is the Statement of Comprehensive Income referred to in our report of even date.



SIBL Investment LimitedStatement of Comprehensive Income


Notes2014 2013

Taka Taka

Operating IncomeBrokerage commission - - Interest income - - Other income - -

- - Less: Expenses 6.00 115,067 98,590

Profit/(loss) before tax (115,067) (98,590)

Provision for taxation:Current tax - - Deferred tax - -

- -

Profit/(Loss) after tax (115,067) (98,590)


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This is the Statement of Changes in Equity referred to in our report of even date.



SIBL Investment LimitedStatement of changes in Equity


Particulars Share capital Retained earnings Total

Opening Balance at 01 January, 2013 250,000,000 (1,490,388) 248,509,612

Add: Net pro�t/loss during the year - (98,590) (98,590)

Balance as at 31 December, 2013 250,000,000 (1,588,978) 248,411,022

Particulars Share capital Retained earnings Total

Opening Balance at 01 January, 2014 250,000,000 (1,588,978) 248,411,022

Add: Net pro�t/loss during the year - (115,067) (115,067)

Balance as at 31 December, 2014 250,000,000 (1,704,045) 248,295,955


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This is the Statement of Cash Flowsreferred to in our report of even date.



SIBL Investment LimitedStatement of Cash Flows


2014 2013

Taka Taka

Cash �ows from operating activities:Collection from operation - - Payment to regulators, employees & others (101,567) (133,840)Net cash in�ow/(out�ow) from operating activities (A) (101,567) (133,840)

Cash �ows from investing activities: - -

Net cash used in investing activities (B) - -

Cash �ows from �nancing activities:Received from Social Islami Bank Ltd. 100,000 121,600 Net cash from �nancing activities (C) 100,000 121,600

Net cash in�ow for the year D=(A+B+C) (1,567) (12,240)

Opening cash & cash equivalents (E) 249,956,077 249,968,317

Closing cash & cash equivalents (D+E) 249,954,510 249,956,077


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SIBL Investment LimitedNotes to the Financial Statements


1.00 Signi�cant accounting policies and other material information:

1.01 Legal status of the company:

SIBL Investment Limited was incorporated as a public limited company under the Companies Act, 1994 vide certi�cation of incorporation no. C-86726/10 dated 30 August, 2010 and obtained its certi�cate of commencement of business on the same day.

1.02 Address of registered of�ce and principal place of business:

The principal place of business is the Registered Of�ce at (7th Floor), 68 Dilkusha C/A, Dhaka-1000.

1.03 Nature of business activities:

The principal objectives of the Company for which it was established are to carry on the business of stock brokers, dealers in relation to shares and securities dealings, to underwrite, manage and distribute the issue of stocks etc. and other services as mentioned in the Memorandum and Articles of Association of the Company.

2.00 Signi�cant accounting policies:

2.01 Basis of preparation of �nancial statements:

The Financial Statements have been prepared on a going concern basis under historical cost convention in accordance with the Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS), Companies Act, 1994 and other applicable laws and regulations.

2.02 Accounting Convention and Assumption:The �nancial statements are prepared under the historical cost convention.

2.03 Accounting Records:The entity has been maintaining all the required books of accounts as are necessary for the accounts.

2.04 Legal Compliance:The �nancial statements have been prepared and the disclosures of information were made in accordance with the requirements of the Companies Act, 1994 and IASs adopted by the ICAB. On the basis of these regulations, Bangladesh Accounting Standards (BAS) & Bangladesh Financial Reporting Standards (BFRS) were applied with the applicable standards at the Statement of Financial Position date.

2.05 Critical Accounting Estimates, Assumptions and Judgments:The preparation of the �nancial statements are in conformity with BFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies.

2.06 Going Concern:The Company has adequate resources to continue in operation for the foreseeable future. For this reasons the directors continue to adopt going concern basis in preparing the �nancial statements. The current credit facilities and resources of the Company provides suf�cient fund to meet the present requirements of existing business.

2.07 Cash & Cash Equivalents:Cash and cash equivalents include cash in hand, cash at banks, term deposits which are available for use by the Company without any restrictions. There is an insigni�cant risk of change in value of the same.

2.08 Cash Flow Statement:Statement of Cash Flow is prepared principally in accordance with BAS-7: Cash Flow Statement and the cash �ows from operating activities have been presented under direct method.

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3.00 Cash & cash equivalents:

Cash in hand 20,973 1,620 Cash at bankSocial Islami Bank Ltd., Principal Br., A/C no. 0002-1330057058 249,933,537 249,954,457 Total 249,954,510 249,956,077

The bank balances have been con�rmed and reconciled with respective bank statements.

Cash in hand has been veri�ed by the Management at the close of the year and a cash custody certi�cate was furnished to the Auditors.

4.00 Share capital:

Authorized capital:25,000,000 shares of Tk. 100 each 2,500,000,000 2,500,000,000

Issued, subscribed & paid-up capital:2,500,000 shares of Tk. 100 each 250,000,000 250,000,000

4.01 Shareholding position:Shareholders % of shareholdings No. Shares No. Shares

1 Social Islami Bank Limited 100.000% 2,499,994 2,499,994 2 Alhaj Nasiruddin 0.000% 1 1 3 Major (Retd.) Dr. Md. Rezaul Haque 0.000% 1 1 4 Alhaj Sultan Mahmood Chowdhury 0.000% 1 1 5 Mr. Abdul Awal Patwary 0.000% 1 1 6 Mr. Kamaluddin Ahmed 0.000% 1 1 7 Alhaj Sk. Mohammad Rabban Ali 0.000% 1 1 Total 100.00% 2,500,000 2,500,000

2.09 Comparative:Financial statements are presented as BAS-1 ‘‘Presentation of Financial Statements” and previous year’s �gures have been restated due to changes in some accounting policies as per BAS-8 ‘‘Accounting Policies, Changes in Accounting Estimates and Errors’’.

2.10 Components of �nancial statements:

According to International Accounting Standard (IAS)-1, as adopted by ICAB as BAS-1 “Presentation of Financial Statements” the complete set of Financial Statements includes the following components:

i) Statement of Financial Position;

ii) Statement of Comprehensive Income;

iii) Statement of Cash Flows;

iv) Statement of Changes in Equity; and

v) Notes to the Financial Statements.

2.11 Reporting currency:

The �gures in the Financial Statements represent Bangladesh Currency (Taka), which have been rounded off to the nearest Taka.

2.12 General:

Previous years �gures have been rearranged wherever necessary to con�rm to the current years presentation.

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5.00 Accrued expenses:

Audit fees 30,750 17,250 Total 30,750 17,250

6.00 Expenses:

Registration & renewals (Note-6.01) 21,522 20,692 Entertainment 19,780 38,000 Conveyance & other expenses 11,970 7,958 Stationery 5,200 14,000 Photocopy 1,775 - Business development expenses 16,650 - Bank charges & excise duty 20,920 690 Audit fees 17,250 17,250 Total 115,067 98,590

6.01 Registration & renewals:

RJSC fees 2,012 5,082 Trade license fees & expenses 19,510 15,610 Total 21,522 20,692

7.00 Post balance sheet event:

No material event had occurred after the Balance Sheet date, which could substantially effect the values reported in the Financial Statements.

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1 Principal Branch (Opening Date- 22-11-1995)15, Dilkusha C/A, Dhaka-1000.Phone-02-9550195,9559241, 9572303, 9564764 Fax-9562002, IP Phone (09612001122) Ext-70201, 70202

2 Gulshan Branch (Opening Date-22-04-1998)80, Gulshan Avenue, Gulshan-1, Dhaka.Phone-02-8829137, 8813793, Fax: 02-9888857IP Phone (09612001122) Ext-70801, 70802

3 Babu Bazar Branch (Opening Date-26-04-1998)31, Nawab Yousuf Road, Naya Bazar, Dhaka.Phone-02-7395118, 7395119, Fax: 02-7395119,IP Phone (09612001122) Ext-70901, 70902

4 Moulvi Bazar Branch (Opening Date-30-09-1998)77/7, Wahid Center (1st Floor) Moulvi Bazar, Dhaka.Phone-02-7316225, 7315323, 7312911Fax: 7312911, IP Phone (09612001122) Ext-71001, 71002

5 Begum Rokeya Sarani Branch (Opening Date-23-09-1999)Bangladesh Lions Foundation Bhaban, 3/C, West Agargaon, Begum Rokeya Sarani, Dhaka.Phone-02-8115789, 8141671, Fax-02-8115789 IP Phone (09612001122) Ext. 71301,71302,71303

6 Panthapath Branch (Opening Date-07-12-2000)Level-2, Block-A, Bashundhara City, 13/Ka/1, Panthapath, Dhaka.Phone-02-9136819,9135229 Fax-02-9135229IP Phone (09612001122) Ext. 71501,71502

7 Sonargaon Branch (Opening Date-09-06-2001)Haji Jalal Tower (1st � oor), Mogra Para, Sonargaon, Narayangonj.IP Phone (09612001122) Ext. 71701,71702

8 Foreign Exchange Branch (Opening Date-04-02-2002)141-143, Motijheel C/A, BIWTA Bhaban, Dhaka.Phone-02-9571254, 9571100Fax: 02-9571100, IP Phone (09612001122) Ext. 71801, 71802

9 Hasnabad Branch (Opening Date-17-04-2002)Hasnabad Super Market, Suvadda, Keranigonj, Dhaka.Phone-02-7761723, fax-02-7761723 IP Phone (09612001122) Ext. 72001,72002,

10 Dhanmondi Branch (Opening Date- 14-05-2002)House # 84, (Old-176), Road # 7/A (Old-14)Satmasjid Road, Dhanmondi R/A, Dhaka.Phone-02-9144682, Fax: 02-9120088 IP Phone (09612001122) Ext. 72101, 72102

11 Nawabpur Road Branch (Opening Date-26-07-03)82, Nawabpur Road (1st Floor), Nawabpur Road, Dhaka. Phone-02-7174921, 7174922, 7174994, 7174995Fax: 02-7174922IP Phone (09612001122) Ext. 72201

12 Uttara Branch (Opening Date-07-12-2003)Latif Emporium, 27 Uttara C/A, Road # 7Sector-3, Uttara, Dhaka.Phone-02-8959731, 8959732, 8959733 Fax: 8961124IP Phone (09612001122) Ext. 72401, 72402.

Dhaka Division

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13 Fatullah Branch (Opening Date-23-12-2003)Fatullah Bazar, Narayangonj.Phone-02-7602144, 7670393,

Fax-02-7672144IP Phone (09612001122) Ext. 72501 ,72502

14 Mirpur Branch (Opening Date-29-12-2003)Plot No-29-30, Block-Kha, Main Road(Goal Chakkar-10), Mirpur, Dhaka.Phone- 02-8055323, 9013584, Fax-02-9013584 IP Phone (09612001122) Ext. 72601,72602,72603

15 Banani Branch (Opening Date-16-10-2008) 48 Kamal Attaturk Avenue, (Ground & 1st Floor)Banani, Dhaka-1213.Phone-02-89820996, 9820997, 9820998,

Fax-02-9820995 IP Phone (09612001122) Ext. 72701, 72702

16 Savar Branch (Opening Date-27-11-2008)Yousuf Tower (2nd Floor), 35 Tatti, Dilkusha Bagh,Savar Bus Stand, Savar, Dhaka.Phone-02-7743707, 7745585IP Phone (09612001122) Ext. 73001, 73002.

17 Mohammadpur Kaderia Tayebia Madrasha Branch(Opening Date-18-05-2009)9/2A Madrasha Road, Joint Quarter, Block-F,Mohammadpur, Dhaka-1207. Phone-02-8142572, 02-9132398, Fax-02-9132253IP Phone (09612001122) Ext. 73101,73102

18 Donia Rasulpur Branch (Opening Date-28-05-2009)49 Rosulpur, Kutubkhali, Donia, Jatrabari, Dhaka.Phone-02-7541659, 7541650IP Phone (09612001122) Ext. 73201, 73202

19 Gopaldi Branch (Opening Date-11-08-2009)Gopaldi Bazar, P.S- Araihazar, District-NarayangonjIP Phone (09612001122) Ext. 73601, 73602.

20 Rampura Branch (Opening Date-24.11.2009)Modina Tower (Opposite TV Centre), 464/1, WestRampura DIT Road, Thana- Khilgoan, DhakaPhone-02-7281320, 7281879IP Phone (09612001122) Ext. 74101 ,74102

21 Keranigonj Branch(Opening Date-13.12.2009)East Aganogor Mosjid market, Shuvadda, ThanaKeranigonj, Karanigonj, DhakaPhone-02-7763253, 7763765IP Phone (09612001122) Ext. 74401, 74402

22 Madhabdi SME/Krishi Branch, (Opening Date-15-07-2010)Madhabdi Plaza, P.O & Porosoba- Madhabdi, P.S & Upazilla - Narsingdi, Zilla- Narsingdi.Phone-9446883, 9446882 Fax-9446884IP Phone (09612001122) Ext. 74501,74502

23 Islampur Branch (Opening Date-26-08-2010)Lions Tower (2nd � oor) 108, Islampur RoadDhaka. Email: [email protected], 7393208 Fax-7393208IP Phone (09612001122) Ext. 75401, 75402

24 New Eskaton Branch (Opening Date-31-08-2010) 27, New Eskaton Road, P.S & P.O- Ramna, Dhaka-1000.

Phone-9359620, 8311592 Fax-8311591IP Phone (09612001122) Ext. 75501, 75502

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25 Bhulta SME/Krishi Branch, (Opening Date-05-09-2010)Mir Market, Salam Mansion, P.O- Bhulta, P.SRupgonj, Zilla- Narayangonj.IP Phone (09612001122) Ext. 75601 75602

26 Galimpur SME/Krishi Branch (opening Date-10-10-2010)Khan Super Market (2nd � oor), Galimpur Bazar,NobabGonj, Dhaka.IP Phone (09612001122) Ext. 75901, 75902

27 Dhamrai SME/Krishi Branch (opening Date-09-11-2010)Dhamrai Bazar, Porosoba- Dhamrai P.S & P.ODhamrai, Zilla- Dhaka.Phone-06222-71908, 06222-71909IP Phone (09612001122) Ext. 76101 ,76102

28 Narayangonj Branch (opening Date-27-12-2010)3 No. S. M. Maleh Road (Rupsi Height), Tanbazar,P.O. & P.S.- Narayangonj, Dist.- Narayangonj.

Phone-7641621-3IP Phone (09612001122) Ext. 76601, 76602

29 Mohakhali Branch (Opening date-20.09.2011)6 (sixteen) storied building, 99 Mohakhali C/A,Holding No-99, Ward No-20, P.O & P.S- Gulshan.Dhaka Phone: 9888943 IP Phone (09612001122) Ext. 77001 ,77002

30 Bangshal Branch (Opening date-21.09.2011)Bangshal Road, P.O & P.S- Bangshal Holding No-45,Ward No-68, Dhaka Sadar, Dhaka

Phone-7317175,7317396IP Phone (09612001122) Ext. 77101 ,77102

31 Bonosree Branch (Opening date-22.09.2011)Plot No-L/2, Road-13,Block-L, South Bonosree,Khilgaon, Dhaka.Phone: 7811611,7811612,7811613IP Phone (09612001122) Ext. 77201, 77202

32 Tongi Branch (Opening date-03.10.2011)8/B Anarkoli Road, Tongi Bazar, Qazi Market, Gazipur.Phone-9817710, 9817711IP Phone (09612001122) Ext. 77401, 77402

33 Bashundhara Branch (Opening date-27.12.2011)House # 16, Block-A, Bashundhara AvenueBashundhara, Dhaka

Phone-8402501,8402502IP Phone (09612001122) Ext. 77701, 77702

34 Demra Branch (Opening date-07.10.2012)Haji Hossain Plaza, Staff Quarter, P.O & P.S.-Demra Dhaka. Phone-7502915, 7502916IP Phone (09612001122) Ext. 78101, 78102

35 Satarkul Road Branch (Opening Date-16.10.2012)North Badda, Alir Moar, Satarkul Road, Badda UnionDhaka. Phone-9858072, 9858073IP Phone (09612001122) Ext. 78401, 78402

36 Horirampur Union Branch (Opening Date-26.11.2012)50, Garib-E-Neawaz Avenue, (Rosewood Areebah) Sector-13, Uttara, DhakaPhone-8955884, 8955886IP Phone (09612001122) Ext. 78601, 78602

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37 Kawran Bazar Branch (Opening Date-27.11.2012)37, Kawran Bazar, Khansons CentreDhaka, Phone- 8180206, 8180207IP Phone (09612001122) Ext. 78701, 78702

40 Panchdona Branch (Opening Date 30-09-2014) Social Islami Bank Ltd.Isfar Tower(1st Floor)P.O-Panchdona, P.S- Narsingdi Sadar, NarsingdiIP Phone (09612001122) Ext-79701,79702,Manager: 01733664400 (mob)

38 Mouchak Branch (Opening Date-18-06-2013)Advanced Melinda (1st Floor), 72, Malibagh (Opposite Fortune Shopping Mall), Mouchak More, Dhaka-1217Phone- 9858072, 9858073IP Phone (09612001122) Ext. 79101,79102

41 Gausia Branch (Opening Date 12-11-2014) Social Islami Bank Ltd.Yakub Market(1st Floor)2-B, Elephant Road, New Market, Dhaka-1205IP Phone (09612001122) Ext-79801,79802Manager: 01716-223007

1 Agrabad Branch (Opening Date-10-04-1996)World trade Centre, 102/103 Agrabad, C/A,Chittagong.Phone-031-728342, 713947, 714041, 714504

Fax-031-710084IP Phone (09612001122) Ext. 70401, 70402,70403

2 Khatungonj Branch (Opening Date-12-12-1999)Holding # 276-277, Ward # 35, Main Road,Khatungonj, Chittagong.Phone-031-636358, 624682, 624683,Fax: 031-639014IP Phone (09612001122) Ext. 71401, 71402

3 Halishahar Branch (Opening Date-09-02-2002)VIP Plaza, Plot # 5/4, Road # 2, Block-G, HalishaharHousing Estate, Halishahar, Chittagong.Phone-031-717201, 815702, Fax-031-2519284IP Phone (09612001122) Ext. 71901,71902

4 Jubilee Road Branch (Opening Date-30-07-2003)Haque Market(1st Floor)610/11,Jubilee Road, Chittagong.Phone-031-628288, 627155, 840897Fax-031-628288, IP Phone (09612001122) Ext-72301

39 Mymensingh Branch (Opening Date-09-10-2013)Ali Plaza, Muktijodda Sarani Road, 64, Choto BazarP.S- Kotwali (Sadar), MymensinghIP Phone (09612001122) Ext. 79601, 79602

42 Maona Branch (Opening Date-24-12-2014)Social Islami Bank Ltd.Razzak Plaza(1st Floor)P.O-Tangra, P.S-Sreepur, GazipurIP Phone (09612001122) Ext- 80101, 80102

Chittagong Division

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. 6 Chowmuhoni Branch (Opening Date-12-11-2008)Hossain Market, 276-284 D.B. Road, Chowmuhani PowrosovaBegumgonj, Noakhali.Phone-0321-56122, 0321-53622IP Phone (09612001122) Ext-72901

18 Bibirhat SME/Krishi Branch (Opening Date-21-10-2010)Social Islami Bank Ltd.Fatikchari Collage Market, P.O-FatikchariP.S- Fatikchari, Upazilla- FatikchariZilla- Chittagong, Phone-03022-5632103022-56318, IP Phone (09612001122) Ext-76001

7 Lohagara Branch (Opening Date-18-06-2009)“Mostofa City”, Lohagara, Chittagong.Phone-0303456518, 030345651701815-065948, IP Phone (09612001122) Ext-73301

8 Comilla Branch(Opening Date-30-07-2009)95/96 Chawk Bazar (2nd Floor)PO- Chawk Bazar, P.S- Kotowali, Comilla.Phone-081-61363, 081-61364, IP Phone (09612001122) Ext-73501

9 Chandpur Branch (Opening Date-16-08-2009)Faisal Shopping ComplexBishnudi, Chandpur Bus StandThana- Chandpur, Dist- Chandpur.Phone-0841-67932, 0841-67931IP Phone (09612001122) Ext-73701

10 Patherhat Branch (Opening Date-19-08-2009)Patherhat, Noapara, Raozan, Chittagong.Phone-031-2572315, 031-2572316IP Phone (09612001122) Ext-73801

12 NanuPur Branch (Opening Date-08.10.2009)Nanupur Bazar, P.O-NanupurP.S- Fatikchari, Dist- ChittagongPhone-044-37151939, 044-37151949 IP Phone (09612001122) Ext-74001

13 GEC Moor Branch (Opening Date-25.11.2009)1692, Golden Plaza, CDA AvenueEast Nasirabad, GEC Mour, Chittagong Phone-0312555891, 0312555892, Fax-2555893IP Phone (09612001122) Ext-74201

14 Kachua SME/Krishi Branch(Opening Date-18-07-2010)Social Islami Bank Ltd.Talukder Super Market, Holding No-111Ward No-08, Kachua, Chandpur.Phone- 08425-56275, IP Phone (09612001122) Ext-74601

15 Hathazari SME/Krishi Branch (Opening Date-16-08-2010)Social Islami Bank Ltd.Hazi M. Siddik Market, Block-B (2nd Floor)Hathazari Bus Stand, Ward No-03P.O & P.S – Hathazari,Upazilla- Hathazari,

Zilla-Chittagong, Phone-031-2601914, 031-2601915IP Phone (09612001122) Ext-75001

16 Baryerhat SME/Krishi Branch(Opening Date-17-08-2010)Social Islami Bank Ltd.Al-Amin Shopping Complex (2nd Floor)Mouza-Jamalpur, Baryerhat PorosobaUpazilla & P.S- Mirsorai, Zilla-Chittagong IP Phone (09612001122) Ext-75101

5 Elliotgonj Branch (Opening Date-30-10-2008)Elliotgonj Bazar, P.O-Elliotgonj, P.S-DawudkhandiDist-Comilla. IP Phone-72801

11 Cox’s Bazar Branch(Opening Date-20.08.2009)Evan Plaza (in front of Cox’s Bazar Pourashava)Thana Road, Cox’s Bazar.Phone- 0341-51822, 0341-51968IP Phone (09612001122) Ext-73901

17 Hajigonj Branch (opening Date-19-09-2010)Social Islami Bank Ltd.Hajigonj Bazar, Ma Plaza, Degree College RoadP.S.& P.O.- Hajigonj, Dist.-Chandpur.Phone-08424-75129,08424-75130IP Phone (09612001122) Ext-75701

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19 Chawk Bazar Branch (Opening Date-15-12-2010)Social Islami Bank Ltd.174/A, Chatteshawri RoadMannan Tower(1st & 2nd foor)P.O-ChawkBazar P.S.- Kotowali, Dist.-ChittagongPhone-031-2867367, 2867368, 2867369IP Phone (09612001122) Ext-76301

20 Feni Branch (Opening Date-18.09.2011)Social Islami Bank LimitedGrand Huq Tower Ltd. Huq Villa, Mizan RoadP.S.-Kotwali, Dist.-Feni.Phone-0331-74104,74103Fax-0331-74117, IP Phone (09612001122) Ext-76901

21 Alanker More Branch (Opening date-27.10.2011)Social Islami Bank LimitedPC Road, Holding No-68(A)Chittagong City Corporation P.O- Custom Academy, P.S- Pahartoly, Chittagong.Phone-031-2773380,031-2773379, 031-2773378IP Phone (09612001122) Ext-77601

22 Homna Branch (Opening date-29.12.2011)Social Islami Bank LimitedHomna Bazar, HomnaPhone-08025-54640, 54641IP Phone (09612001122) Ext-77801

26 Akhaura Branch (Opening date-18-05-2013)Social Islami Bank Ltd. Sarker Plaza(opposite to Akhaura Poura Bhaban)Holding No-3, Ward No-4P.O. & P.S- Akhaura, Brahmanbaria

Manager-01712-592457

27 Aturar Depo Branch (Opening date-26-06-2013)H S TowerHolding No-1006(Beside CNG Petrol Pump), Hathazari RoadP.S-Panchlaish, ChittagongIP Phone (09612001122) Ext- 79201, Manager-01811-960302

28 College Road Branch (Opening date-04-07-2013)College Road, DebidwarNew Market P.O & P.S- Debidwar, ComillaManager-01714-178022, IP Phone (09612001122) Ext- 79401

29 Maijdee Branch (Opening date-18-08-2013)Bismillah Tower, Holding No-428/BMain Road, Maijdee BazarP.S- Sudharam (Sadar), Noakhali Phone-0321-71814, 71815Manager-01819-426262, IP Phone (09612001122) Ext- 79501

23 Shah Mohsen Awolia Branch(Opening date-03.10.2012)Social Islami Bank Ltd.Hajee Imam Shopping CenterBattali, Anowara, ChittagongIP Phone (09612001122) Ext-77901, Phone-01914-527329 (Mob)

30 Laxmipur Branch (Opening Date 13-12-2014)Social Islami Bank Ltd.R K Plaza(1st Floor), ChawkbazarP.O & P.S- Laxmipur, LaxmipurIP Phone (09612001122) Ext- 80001, 80002

24 Dewanhat Branch (Opening date-04.10.2012)Social Islami Bank Ltd. 700, DT Road, DewanhatP.O.-Pathantoly, P.S.-Double Mooring Chittagong. IP Phone (09612001122) Ext-78001Phone-031-2515260, 2515261, 2515262

25 Roazarhat Branch (Opening date-24.11.2012)Social Islami Bank Ltd.A. Farida Shopping ComplexKaptai Road, Roazarhat P.O & P.S-Rangunia, ChittagongIP Phone (09612001122) Ext-78501 Phone-030-2556244, 2556245

31 Kankirhat Branch (Opening Date-27-12-2014) Social Islami Bank Ltd. R.S. Tower(1st & 2nd Floor) Vill & P.O-Matyn, P.S-Senbag, Noakhali IP Phone (09612001122) Ext- 80201, 802025

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1 Rajshahi Branch (Opening Date-10-08-1996)A H TowerHolding No-328-331 & 333-336.Alokarmore, Station Road, Thana-Boalia, RajshahiPhone-0721-812317, 812452, Fax-0721-812317IP Phone (09612001122) Ext-70701

2 Sirajgonj Branch (Opening Date- 26-10-1998)Zaman ComplexS.S. Road, Sirajgonj.Phone-0751-63203, 64360,63203IP Phone (09612001122) Ext-71201

3 Chandaikona Branch (Opening Date-19-12-2000)Pabna Bazar, Raigonj, Sirajgonj.Phone-07526-56122, 01715-805435Fax-07526-56122 IP Phone (09612001122) Ext-71601

5 Bogra Branch (Opening Date-25-10-1998)Bhandary Monjil776, Rangpur Raod, Borogola, Bogra.Phone-051-65833, 63943, 61458, Fax- 051-63943, IP Phone (09612001122) Ext-71101

6 Dupchachia Branch (Opening Date-25-11-2010)Social Islami Bank Ltd.Jobeda Shopping Complex (2nd � oor)C.O. Of� ce Bus Stand, Dupchachia, Bogra.Phone- 05024-51250, 51251, IP Phone (09612001122) Ext-76201

1 Sylhet Branch (Opening Date-27-06-1996)781, Karima Mansion, Dargah Gate

Sylhet-3100.Phone-0821-711282, 0821-710485, Fax-0821-711282, IP Phone (09612001122) Ext-70601

7 Naogaon Branch (Opening Date-12.09.2011)Social Islami Bank LimitedNaogaon Pourashava (Sonali Bank Road)Ward No- 4, Vill- Qazipara, Naogaon. Phone-0741-81112, 81113, IP Phone (09612001122) Ext-76701

3 Moulvibazar Branch (Opening date-10.10.2012)Social Islami Bank Ltd. 183 Shamsher Nagar RoadChowmohana, MoulvibazarPhone- 0861-63906, 63907IP Phone (09612001122) Ext-78201

Sylhet Division

Rajshahi Division

4 Shahjadpur SME/Krishi Branch (Opening Date-03-10-2010)Social Islami Bank Ltd.Alhaj Rajjak Plaza, Monirampur BazarP.S & P.O- Shahjadpur, Zilla-SirajgonjPhone- 07527-64049, 07527-64050IP Phone (09612001122) Ext-75801

1 Barisal Branch (Opening Date-25.09.2011)Social Islami Bank LimitedKatpatty Road, Kotwali Model ThanaHolding No-1, Ward No-9, Barisal Sadar, BarisalPhone:0431-61659, 0431-2177480IP Phone (09612001122) Ext-77301

8 Chandaikona Branch (Opening Date-19-12-2000)

Pabna Bazar, Raigonj, Sirajgonj.Phone-07526-56122, 01715-805435Fax-07526-56122 IP Phone (09612001122)

Ext-71601

2 South Surma Branch (Opening Date-23-07-2009) Chandipool Baipass Road (Opposite of South surma Thana), P.O-Sylhet Sadar, P.S- South Surma, Sylhet.Phone- 0821-2833431, 0821-2833432IP Phone (09612001122) Ext-73401

4 Fenchugonj Branch (Opening date-11.10.2012)Social Islami Bank Ltd.Akul Shah Shopping CityGeneral Osmani Sharak (Thana road point)P.O. & P.S.- Fenchugonj, SylhetIP Phone (09612001122) Ext-78301Mobile: 01795-042600, 01711-484905 50

Barisal Division

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1 Gobindagonj SME/Krishi Branch (Opening Date-22-08-2010)Social Islami Bank Ltd.Goleza Super Market (High way Road)Holding No-318, Ward No-6Porosoba- Gobindagonj, P.O & P.S -Gobindagonj, Zilla- Gaibandha, Phone-05423-75396, 05423-75397IP Phone (09612001122) Ext-75201

3 Rangpur Branch (Opening Date-13.09.2011)Social Islami Bank LimitedShah Bari Tower, Station Road (Guptapara)House No-286, Ward No-9P.O-Rangpur, P.S- Kotwali, Rangpur.Phone-0521- 55183, 55184 (Fax)IP Phone (09612001122) Ext-76801

1 Khulna Branch (Opening Date-20-06-1996)22, Sir Iqbal Road, G.M. Baksh Tower(Ground, 1st & 2nd � oor) Khulna City CorporationKhulna. Phone- & Fax-041-722133, 730533IP Phone (09612001122) Ext-70501

2 PaikGacha Branch (Opening Date-06.12.2009)Main Road, Paik Gacha

Khulna. Phone- 04027-56678, IP Phone (09612001122) Ext-74301

3 Jessore Branch (Opening Date-19-12-2010)Social Islami Bank Ltd.36, Rail Road(Chowrasta)P.O.-Jessore, P.S.- Kotowali

Dist.-Jessore, Phone-0421-64404IP Phone (09612001122) Ext-76401

4 Noapara Branch (Opening Date-08-08-2010)Social Islami Bank Ltd.Noorbag Moor, P.O- Noapara,P.S.-Abhoynagar, Dist.-Jessore.Phone-04222-72300, IP Phone (09612001122) Ext-74801

6 Monirampur SME/Krishi Branch(Opening Date-08-08-2010)Social Islami Bank Ltd.Monirampur Bazar, Holding No-2145, Ward No-03Monirampur, Zilla- Jessore. Phone-0422778400, IP Phone (09612001122) Ext-74701

Khulna Division

Rangpur Division

7 Fakirhat SME/Krishi Branch(Opening Date-09-08-2010)Social Islami Bank Ltd.Mohammad Ali Market, Kathal Tolar More, Fakirhat Bagerhat. Phone-04655-56150 IP Phone (09612001122) Ext-74901, 74902

8 Bagerhat Branch (Opening date-29.11.2012)Social Islami Bank Ltd.13, Khan Jahan Ali RoadBagerhat Pourashava, BagerhatIP Phone (09612001122) Ext-78801Phone- 0468-64347, 0468-64348

9 Patkelghata Branch (Opening date-22-05-2013)Social Islami Bank Ltd.Patkelghata Bazar, Ward No-05P.O & P.S.- Patkelghata, Satkhira.

Manager-01718-610385

10 Chougacha Branch (Opening date-30-06-2013)Social Islami Bank Ltd.Chougacha Bus stand (Dhoni Plaza)Ward No-01, P.O & P.S.- Chougacha, JessoreIP Phone (09612001122) Ext- 79301Manager- 01718-810817

5 Satkhira Branch (Opening Date-20-12-2010)Social Islami Bank Ltd.London Plaza, Boro Bazar RoadP.S. & P.O- Satkhira, Dist.- Satkhira.Phone-0471-65078, 0471-65444, Fax- 0471-65444IP Phone (09612001122) Ext-76501

2 Dinajpur Branch (Opening Date-23-08-2010)Social Islami Bank Ltd.Lilir Moor, Holding No-1191/1150House No-286, Ward No-9P.O-Rangpur, P.S- Kotwali, Rangpur.Phone-0521- 55183, 55184 (Fax)IP Phone (09612001122) Ext-76801

4 Saidpur Branch (Opening Date-27-11-2014)Social Islami Bank Ltd.Altaf Tower (Ground Floor)0007, Saidpur Zikrul Haque RoadP.O & P.S- Saidpur, NilphamariIP Phone (09612001122) Ext-79901,79902, Manager-01191626465

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Corporate Of�ce: City Center, 90/1, Motijheel C/A, Dhaka-1000

NOTICE OF THE 20TH ANNUAL GENERAL MEETING

Notice is hereby given that the 20TH ANNUAL GENERAL MEETING (AGM) of the Shareholders of SOCIAL ISLAMI BANK

LIMITED will be held on Monday, the 30th March, 2015 at 10:30 a.m. at “Savar Golf Club, Savar Cantonment, Dhaka”

to transact the following business:

1. To receive, consider and adopt the Directors’ Report and Audited Financial Statements of the Bank for

the year ended December 31, 2014 together with the reports of the Auditors’ thereon;

2. To declare dividend for the year 2014 as recommended by the Board of Directors;

3. To elect Directors; and

4. To appoint Auditors and �x their remuneration for the term until the next AGM.

By order of the Board

Date: 14 March, 2015 (Md. Humayun Kabir, ACS)Company Secretary

Notes:

(a) The ‘Record Date’ was Tuesday, the 10th March, 2015;

(b) Shareholders whose names appeared in the Members Register of the Company or in the Depository on the ‘Record Date’ will be eligible to attend, vote in the 20th AGM and receive entitled dividend;

(c) A Member who is entitled to attend and Vote at the Annual General Meeting (AGM) can appoint a Proxy to attend and vote on his/her behalf. Forms of Proxy, duly stamped of Tk. 20/- (Taka twenty) only must be submitted at the Registered Of�ce of the Company at least 48 hours before the time �xed for the meeting;

(d) Admission into the venue of the AGM will be allowed on production of the Attendance Slip sent with the Notice as well as veri�cation of signature of Member(s) and/or Proxy holder(s);

(e) The registration for attending the AGM shall be started at 9:00 a.m; and

(f) Annual Report along with Directors Report, Balance sheet, Audited Financial Statements and Proxy Forms are available at the Bank’s website (www.siblbd.com).

(N.B: No gift or bene�t in cash or kind other than in the form of Cash or Stock dividend shall be paid /offered to the holders of equity securities at the time of AGM as per BSEC Circular No.SEC/CMMRCD/2009-193/154 dated 24.10.2013).

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PROXY FORMI/We.......................................................................................................................................................................................... of (Address).................................................................................................................................................................................

..................................................................................................................................................being a member of SOCIAL ISLAMI BANK LIMITED and entitled to vote hereby appoint Mr./Mrs./Miss.............................................................................……......................................as my proxy to attend and vote for me and on my behalf at the 20th Annual General Meeting (AGM) of the Bank to be held on Monday, 30th March, 2015 at 10:30 a.m. and at any adjournment thereof.

As witness my hand this ........................day of..........................................2015.

(Signature of the Proxy) Signature of the MemberDate : .........................

Folio No: …………………..

Authorized Signature

BO ID No:

No. of Shares held: .……………….

Notes: 1. A Member entitled to attend and vote at the General Meeting may appoint a Proxy who will also be a Member of the

company to attend and vote in his/her behalf. The Proxy Form, duly stamped, must be submitted at the RegisteredOf�ce of the Company not later than 48 hours before the time �xed for the meeting.

2. Signature of the Member must be in accordance with the specimen signature registered with the Company or with the Depository.

....................................................................................................................................................................................................


ATTENDANCE SLIPI hereby record my presence at the 20th Annual General Meeting (AGM) of Social Islami Bank Ltd. at “Savar Golf Club, Savar Cantonment, Dhaka” on Monday, the 30th March, 2015 at 10:30 a.m.

Name of Member/Proxy: ……...........................................................................................................................................………

Registered Folio/BO No: ...........................................…..............….....holding of....…..........................…...... Ordinary Shares of

Social Islami Bank Ltd.

Signature of Member/Proxy(Members are requested to handover the Attendance Slip at the entrance of the meeting hall.)

Revenue Stamp

Tk. 20.00

Corporate Of�ce: City Center, 90/1 Motijheel Commercial Area, Dhaka-1000, BangladeshPhone : 09612001122, E-mail : [email protected]

w w w . s i b l b d . c o m

Documents

Annual Report 2014 · 2019-11-23 · Subject: Annual Report 2014 of Social Islami Bank Limited. Muhtaram As-salamu Alikum Wa Rahmatullah Reference to the above, we enclose herewith