Tarm Paper on Overview Of Islami Bank Bangladesh Ltd.
A TERM PAPER
ON
“An Overview Of Islami Bank Bangladesh Ltd.”
Chapter#1
1.1 Introduction:
Islami banking signifies banking
operations that comply with provisions given on the fundamental Islamic texts. While
some of these norms are shared by Islamic and western financial systems, certain
norms are exclusive to Islam.
In fact, some Islami banking restrictions
are severe enough to render certain western banking practices and transactions
absolutely void. Prohibition of riba and gharry are two of the main
restrictions imposed by the Quran and the Sunnah. Most of the present-day
Islamic scholars agree that riba, which literally means “an excess,” includes
both usury and interest. The prohibition of riba is generally considered to be
the most important of all Islamic banking principles. Gharar signifies
ambiguity, uncertainty, or lack of specificity in the terms of a financial
contract.
As riba is prohibited, suppliers of
capital become investors instead of creditors. Also, investment can only be
made in permitted commodities and activates. For instance, one cannot deal in
the import and export of alcohol. Similarly, it is not allowed to invest in a
casino. Based on the above-mentioned principles, there is a variety of Islamic
banking instruments and transactions in vogue. Mishawaka is a business
structure is which the bank not only makes a financial contribution to the
enterprise, but may also participate in managing the venture. Profits are
shared between the parties according to a pre-determined ratio, and losses are
borne by them in proportion to their capital contributions. In terms of
classification, this is an equity-based transaction.
In mudaraba, the bank provides the
requisite financial resources, but does not participate in managing the
enterprise. It is a form of partnership in which one party provides the funds
while the other provides expertise and management. Profits are divided among
the parties according to a mutually agreed ratio. Financial losses are norne by
the investor alone. This is also an equity-based transaction. Murabaha is an
arrangement in which the bank, instead of advancing a loan to the client
wishing to purchase certain goods or equipment, purchases the items and sells
them to the client at cost plus a declared profit. Sin tawarruq, the bank buys
an asset and immediately sells it to the client on a deferred payment basis. The
client then sells the same to a third party for immediate delivery and payment.
Consequently, the client receives a cash amount and has a deferred payment
obligation for the marked-up price to the bank. The asset is typically a metal,
like copper or platinum.
Ijarah is the leasing or hiring of
a physical asset, and it is one of the fastest growing activities of Islamic
banks. It must be mentioned that some of the transactions and instruments are
not considered to be in conformity with Islamic law by all Muslim scholars. Those
opposing these practices do so bb pointing out the hidden or concealed elements
of riba and gharar in them. For example, actual administrative fee is one thing
and interest in the name of administrative fee is another. In fact, every bank
conducting Islamic operations has a committee of Muslim scholars, called the
“Sharia Committee,” that determines whether a product or practice complies with
Islamic law. As there is no set of binding uniform rules, Sharia committees, at
times give conflicting rulings. There can also be a difference between twp
countries or regions. For instance, in Malaysia, islamic banking restrictions
are interpreted more liberally than in the Gulf.
Another shortcoming confronting
Islami banking is the shortage of qualified professionals. There are not many
people who are equally skilled in conventional
banking and Islamic law. A Person well acquainted with conventional banking can
easily understand any Islamic product; however, one cannot develop or market
such a product without knowing the rules and logic unique to Islam. To summaries,
lack of uniformity in laws and procedures, and deficiency of skilled
professionals are among the main hurdles faced by Islamic banks and their
clients. However, the industry is growing-the Arab oil money being one of the
main driving forces. This is evident not only from the number of banks
established specifically for practicing Sharia compliant finance, but also from
the increasing number of western or conventional banks engaging in such
operations.
Allah has forbidden investing or
earning on the basis of interest (Riba). It means interest (Riba) is harem
according to Quran and Sunnah. So every
sort of transaction must be free from Riba.But not only in Bangladesh but also
over the world all the banks are working basing on interest. As it Haram in
Islam the Muslim scholars thought a plan to establish a banking system that is
free from interest and will work on the basis of profit-loss sharing. Then
depending on this thought, it is decided to establish Islamic banks through the
whole world to protect every one from this curse. So Islamic banks are working
on the basis of Islamic. Shariah that is free from interest.
1.2 Definition of an Islamic Bank:
An Islami Bank is a financial
institution that operates with the objective to implement and materialize the
economic and financial principles of Islam in the banking area.
The Organization of Islamic Conference(OIC)defined
an Islami Bank as a financial institution whose statutes, rules and procedures
expressly state its commitment to the principles of Islamic Shariah and to the
banking of the receipt and payment of interest on any of its operation.
According to Islami banking act 1983 of
Malaysia, and Islamic Bank is a company which carries on Islamic Banking
Business Islamic.Islamic Banking business means banking business whole aims and
operations do not involve any element which is not approved by the religion
Islam.
1.3 Characteristics Of Islamic Banks:
1. It is a financial institution.
2. It is a business institution.
3. It operates its business
activities free from interest.
4. It is run according to rules and
regulations formed and amended by Shariah Council.
5. Islamic bank means not business
product but running business through money.
6. It is profit-loss sharing
business organization.
7. It provides loan as Quad
Hashanah for social welfare.
8. It gives Zakat on its capital
according to Islamic Shariah.
9. It leads all of its transaction
according to Islamic law.
10. No form of work is done which
is in Islamic etc.
1.4 Necessity of Islamic
Bank:
The objective of Islami banking is
not only to earn profit, but also to do good and welfare to the people. Islam
upholds the concept that money, income and property belong to Allah and this
wealth is to be used for the good of the society.
Islamic banks operate on Islamic
principles of profit and loss sharing, strictly avoiding interest, which is the
root of all exploitation and is responsible for large-scale inflation and unemployment.
Islami bank is committed to do away
with disparity and establish justice in the economy, trade, commerce and
industry-build socio-economy infrastructure and create employment
opportunities.
1.5 Mission of the Islami bank:
To establish Islami banking through the introduction of a
welfare oriented banking system and also ensure equity and justice in the field
of all economic activities, achieve balanced growth and equitable development
through diversified investment operations particularly in the priority sectors
and less development areas of the country. To encourage socio-economic
development and financial services to the low-income community particularly in
the rural areas.
Vision of the Bank:
The vision of IBBL is to always
strive to achieve superior financial performance, be considered a leading
Islamic Bank by reputation and performance.
To establish and maintain the
modern banking techniques, to ensure the soundness and development of the
financial system based on Islamic principles and to become the strong and
efficient organization with highly motivated
professionals, working for the benefit of people, based upon
accountability, transparency and integrity in order to ensure stability of
financial system.
Try to encourage savings in the form
of direct investment.
Try to encourage investment
particularly in projects, which are more likely to lead to higher employment.
1.6 Islami Bank Of Bangladesh:
Bangladesh is one of the largest
Muslim countries in the world. The people of this country are deeply committed
to Islamic way of life as enshrined in the Holy Quran and the Sunnah. Naturally,
it remains a deep cry in their hearts to fashion and design their economic
lives in accordance with the precepts of Islam. The establishment of Islamic
Bank Bangladesh Limited on March 13,1983, is the true reflection of this inner
urge of its people, which started functioning with effect from March 30,1983.This
Bank is the first of its kind in southeast Asia. It is committed to conduct all
banking and investment activates on the basis of interest-free profit-loss
sharing system. In doing so, it has unveiled a new horizon and ushered in a new
silver lining of hope towards materializing a long cherished dream of the
people of Bangladesh for doing their banking transactions in line with what is
prescribed by Islam. With the active co-operation and participation of Islamic
Development Bank (IDB) and some other Islamic banks, financial institutions,
government bodies and eminent personalities of the Middle East and the Gulf
countries, Islamic Bank Bangladesh Limited has by now earned the unique
position of a leading private commercial bank in Bangladesh.
With 251 branches and 10,068
staffs, IBBL is the largest private banking network in Bangladesh.
1.7
IBBL ATM Networks:
Islamic Bank Bangladesh Limited now
has its own ATM network with 48 booths. IBBL also has 85 shared ATM booths with
ETN covering major citics and districts of the country. IBBL is on its way to
expand their ATM network country wide. IBBL card holder can withdraw cash, pay
BTTB, Grameenphone, City Cell and Aktel bill and monthly installments of MSS,
Hajj, Muhor and HDS schemes through ATM.
1.8 Islami Bank foundation:
·
Islami Bank Hospital.
·
Islami Bank Medical College, Rajshahi.
·
Community Hospital.
·
Monoram: Islami Bank Crafts & Fashion.
·
Service Center.
·
Islami Bank Institute OF Technology..
·
Islami Bank International School and College.
·
Islami Bank Physiotherapy And Disabled
Rehabillitation Centre.
·
Centre For Development Dialogue.
·
Bangladesh Sangskritic Kendra (Cultural
Centre)
Chapter#2
2.1
Islami Banking General Overview:
Islami banking refers to a system
of banking, which is consistent with Islamic Shariah (Law), and guided by
Islamic economics. Islamic law prohibits the payment and collection of riba
(interest or usury).The main argument against interest is that money is not
used as a commodity with which to make a profit but that it should be earned on
goods and services only, not on control
of money itself. Features of Islamic Banking are based on ethical principles. Islamic
Sharah allows all economic activities in the framework of protecting public
interest and safeguarding it. Man may make profit from doing business. However,
when this runs against Islamic ethics and morality, it is outlawed. In
addition, for an investment to be legitimate, one of the most important
requirements is that its outcome must fulfill the reality of investment
transactions and that it enables the Islamic Financial Institution (IFI) to
state what it expects to make in profits. However, this can not be determined
as a certainty or can one commit one’s
self to it, or bear any loss sustained.
Main conditions governing Islamic
investment include. Money does not generate or beget money in itself, but it becomes
productive if it is involving an activity or work; Investment is subject to the
rule of profit and loss sharing; investment in business activities is lawful, but
prohibitions should be avoided; Contracts must be free of gharry (uncertainty, ignorance
and the conditions which lead to disputes).
2.2
Islami Banking Overview:
The object of Islami banks is to
pool the Muslims’ savings and direct them to the investment by Sharia’a methods
with a view to contributing in the comprehensive development plans for their
communities. The Islamic Sharia’a is a
miracle in its provisions relating to work, profit, expenditure, saving, investment
and development. These provisions
overall demonstrate that work for making a living is a worship and the
expenditure is permitted in lawful acts (Halal)-not in prohibited acts (Haram).
Expenditure in Halal is tied by
moderation without extravagance or lavishness and this, undoubtedly,results in
saving the remaining part of income after expenditure.
In as much as that Islam has
prohibited hoarding money and preventing its circulation since the use thereof
shall produce more commodities and services, a person or group should invest
duch savings in such a way excluding unlawful acts (Haram),and those in charge
of Muslims should prepare development plans and make available the potentials
to such plans as well as directing the available resources thereto,most
importantly,the human resources spearheading the execution of such plans with
experience and sincerity.
The Islamic Sharaia’a is a complete
system for the life of people in all aspects of life and it is governing their
actions by way of permission or prohibition,and it is capable of achieving
their interests, meeting their needs and adminstering justice among them, while
the other systems,which are contrary to it, render the people lose their
interests and make blights and evils befall thereon and destabilize the scales
of justice among them,hence the nation, the economic aspect thereof in
accordance with the program(for action) of God and to derive provisions which
keep pace with the new developments of this life according to this program.
And since Islam is a comprehensiv
mission organizes all walks, aspects and activities of our life;it does not
omit one of the essential activities in our life which is the Transactions Fiqh
or the Islamic jurisprudence which manages and supervises trade and deals in
community.As Islamic banks apply Sharia’a rules and provisions and follow this
jurisprudence, hence, the Islamic banking objective is applying the
transactions Fiqh appropriatly to satisfy the customer who desires to deal with
Islamic bank, thus the bank’s image and reputation are reflected by the
extentof compliance with Sharia’a rules and the obligations towards Fatwa and
Sharia’a Supervisory Board’s decisions.
2.3
Objective Of The Islamic Bank Ltd:
To conduct interest-free banking.
To establish participatory banking
instead of banking on debtor-criditor relationship.
To invest through different modes
permitted under Islamic Shariah.
To accept deposits on profit-loss
sharing basis.
To establish a welfare-oriented
banking system.
To extend co-operation to the poor,
the helpless and the low-income group for their economic development.
To play a vital role in human
development and employment generation.
To contribute towards balanced
growth and devlopment of the country through investment operations particularly
in the less developed areas.
To contribute in achieving the
ultimate goal of Islamic economic system.
Islami Bank Bangladesh Ltd(IBBL).
Islami Bank Bangladesh limided was
incorporation on 1.03.1983 and received its Banking License on 28.03.1983.IBBL
started functioning on 30.03.1983.The authorized capital of the Bank is
TK.50.00 crores and paid up capital is TK 32.00 Crores.
Inspired by the success of Islami
Bank Bangladesh Limited 5 other Islamic Banks namely-Al-Baraka Bank, social
Investment Bank Al-Arafa Islami Bank, Faisal Bank and Exim Bank have been
established in Bangladesh.Prime Bank has established Islamic Branches.
2.4
Objectives Of Shariah Council:
The function of the council are to
offer views and opinions on matters related to the bank from time to time. The
council may requre any paper document from the bank and examine the same to see
whether it is according to see whether it is according to Islamic principles.
The Shariah council assists the
Board of Directors by advising them on matters related to Shariah.
The opinion of the majority of
members is taken as the onion of the council provided that the said opinion is
supported by at least three Muftis of the council.
The council maintains its
secretariat and a well- equipped library as the Head Office of the bank where
it keeps proper records of all of its proceedings and decisions.
The council elects a chairman and a
secretary from amongest them. The chairman will normally preside over the
meetings. In his absence the members present elect one of them to preside over
the meetings.
The council may whenever it thinks
necessary, constitutes a sub committee to help the council.
The council issues Shariah
Certificate in the Annual Report of the bank.
2.5
Aims And Objectives Of Islami Bank Bangladesh Limited(IBBL):
·
To conduct interest-free banking.
·
To establish participatory banking
instead of banking on debtor-creditor relationship.
·
To invest on profit and risk sharing
basis.
·
To accept deposits on Mudaraba & Al-Wadeah
basis.
·
To establish a welfare-oriented banking
system.
·
To extend co-operation to the poor, the
helpless and the low income group for their economic upliftment.
·
To play a vital role in human
development and employment generation.
·
To contribute towards balanced growth
and development of the country through investment operations particularly in
the less development areas.
·
To contribute in achieving the ultimate
goal of Islamic economic system.
2.6
Historical Background Of IBBL:
In August 1974, Bangladesh signed
the Charter of Islami Development Bank and committed itself to reorganize its
economic and financial systems as per Islamic Shariah. In january 1981, the president of Bangladesh,
the then ,while addressing the 3rd Islamic Summit Conference held at
Mecca and Taif suggested, “The Islamic countries should develop a separate
banking system of their own to facilitate their trade and commerce.”This statement of the president
indicated favorable attitude of the government of the people’s Republic of
Bangladesh towards establishing Islamic banks and financial
institutions in the country. Earlier
in November 1982, Bangladesh Bank, the country’s central Bank, sent a
representative to study the working of several Islamic Banks abroad. In
November 1982, a delegation of IDB visited Bangladesh and showed keen interest to participate in
establishing a joint venture Islami Bank in the private sector. They found a
lot of work had already been done and Islami banking was in a ready form for
immediate introduction. Two professional bodies Islamic Economics Research
Bureau(IERB) and Bangladesh Islamic Banker’s Association(BIBA) made significant
contributions towards introduction of Islamic banking in the country.
They came forward to provide
training on islamic banking to top bangkers and economists to fill up the vacuum
of leadership for the futurre islamic banks in bangladesh. they also held
seminars, symposia and workshops on islamic economics and banking through out
the country to mobilize public opinion in favor of islamic banking.
their professional actoivities were
reinforced by a number of muslim entrepreneurs working under the aegis of the
muslim businessmen in society(now reorganized as industrialist& Businessmen Association). The
body concentrated mainly in monilizing equity capital for the emerging Islami
Banks.
At last, the long drawn struggle, to
establish an Islamic bank in Bangladesh becomes a reality. Islami bank
Bangladesh Limited was established in March 1983.In which 19 Bangladeshi
nationals,4 Bangladesh institution and 11 Banks, financial institutions and
government bodies of the middle east and Europe including IDB and eminent
personalities of the kingdom Saudi Arabia joined hands to make the dream a
reality.
2.7
History Of IBBL:
Establishment of Islami Development
Bank(IDB) by the OIC member states in 1975 has been proved to be a breakthrough
in the expansion of Islamic Shariah based finance and specially banking
throughout the world.As a founder member of IDB,the Government of Bangladesh
also had the commitment to establish Islamic banks which was reflected in
different steps taken by the governments of the country.The OIC members
consented to the proposals to introduce Islamic economy and banking in their
respective countries held in the foreign ministers’ conferences in 1978 and
1980 in dakar and Islamabad respectively.In the year 1981, OIC in its 3rd
summit held in Makkah approved the
proposition submitted by Bangladesh
to introduce separate banking system following Islamic ideology.As per
decision, the GOB sent representatives to the Middle Eastern countries to learn
the existing banking systems in those countries.
In the private sector, the Islamic
Economics Research Buraeu (IERB) was the
first organization that tood active initiative in this regard.They arranged a
national seminar on Islamic Economics and Banking in the year 1979 and inspired
by the discussion and the papers presented in the seminars, some local bankers
formed ‘Islami Bank Working Group’. The IERB again arranged an international
seminar in 1980.After the seminar, Dhaka based ‘Muslim Businessman Society’
(later renamed as ‘Industrialist and Businessmen Association’) under the
leadership of renowned industrialist Abdur Razzaque lasker, took initiative to
establish an Islamic bank and applied to the government for permission.At this
stage, the GOB provided necessary permission in the year 1983 and at last
‘Islami Bank Bangladesh’ was registered under Commpany Act in which 19
Bangladesh national, 4 Bangladeshi institution and 11 banks, financial
institutions and government bodies of the Middle East and Europe including IDB
and two eminent personalities of the kingdom of Saudi Arabia joined hands to
make the dream a reality.
Chapter#3
3.1
Types Of Accounts In An Islami Financial Institution(IFI):
In islami banking each customer is
a partner with the Islami Financial Institution(IFI).This relationship is
classified as a Mudarib Partnership.Profits resulting from the account are
divided between the parties.An IFI
receives a certain percentage of the net profits as a return for the
amounts deposited in different investment accounts as its share, bing a Mudarib
as agreed between the customer, who is the investment account holder, and the IFI.
(i)
Currrent Accounts:
Current accounts are an
interest-free loan by the accounts holder to the Islamic bank ,which maintains
these funds and pays them to the customer on demand.These accounts are similar
to a loan in guarantee and the payment of the same amount.An IFI has the right
to invest the funds it is holding in current accounts without the customer
bearing any loss.For this reason ,the customer does not get any profit on this type of account,but he
also does not bear any loss.
(ii)Investment
Savings Accounts:
Many Islami banks offer savings
accounts to their customers.This account allows the account holder to place
funds in a safe environment till such time when they may wish to withdraw
them.Profits and losses under investment savings accounts accrue on the minimum
monthly balance.Profits are paid,or losses are deducted, after the expiry of
the financial year and the net profits are determined.
The balances under investment
savings accounts are invested on the basis of unrestricted Mudharaba.An Islamic
banks has the right to do everything neecssary to realize common interest.
An account holder authorizes the
Islamic bank to invest the profits made from the moment they are registered in
his own account with the Islamic bank.
3.2
Islamic Bank Bangladesh Limited At A Glance:
1. Date of incorporation: 13.03.83
2. Date of receiving Banding license:28.03.83
3. Date of incorporation of first branch(Local
office Dhaka):30.03.83
4. Formal inauguration:12.08.83
5. Zone:6
6.Authorized capital : 5000 million.
7. Share capital: a) Local-share holders:42.12%
b)Foreign share holders:57.88%
8. Paid-up
capital:2820.00
9.
Equity(31/06/2004):tk.6130.36 million
10. Branches
:170
11.
Deposit(30/06/2005):tk.107,779.50 million
12. Investment(30/06/2005):179,465.76
million
13. Foreign
Exchange Business(30/06/2005) :tk.110059.00 million
14 Number of
employee(30/06/2005):6068
15.
Shareholder(30/06/2005):15741
3.3
Shariah Council:(SC).
Shariah Council
of the bank is playing a vital role in guiding and supervising the implantation
and compliance of Islamic Shariah principles in all activities of the bank
since its very inception. The council, which enjoys a high status in the
structure of the bank, consists of prominent ulema, reputed banker, renowned
lawyer and eminent 3.3
3.4
Profit and Riba:
profit on loss
comes from investment in business activities. Profit is the result of ownership
transaction and risk following the fours stages.
Transformation
through Bai/Buying Selling of goods.
Risk Of
Transformation And Ownership.
Other Condition
of Shariah.
Result-Profit on
loss.
Profit is the
difference between the value of production and the cost of production which is
Halal according to Islami Shaiah.
Riba/Interst
:Interest come from loan,credit,advance of money.The word used by the Quran
concerning “Interest is Riba.The literal meanings of Riba are money increase,increase
of anything or increment of anything from its original amount.
From the Islamic
Shariah point of view,Riba is Haram.
3.5
Comparison Between Riba and profit:
|
Riba |
Profit |
|
1. One
goods-fungible. |
1. Two goods |
|
2. Loan-Ownership
retained |
2. Ownership
Exchanged |
|
3.Excess-without
exchange |
3. Equity of
Value |
|
4. No
transformation |
4.
Transformation |
|
5. No Risk of
transformation and ownership |
5. Risk home |
|
6. No relation
with result imposed |
6. Is the
result |
|
7. Certain |
Uncertain |
Conventional
banking VS. Islamic banking:
Conventional
banking is essentially based on the debtor creditor relationship between the
depositors and the bank on the hand and between the borrowers and the bank on
the other. Interest is considered to be the price of credit, reflecting the
opportunity cost of the money.
Islam on the
other hand, considers a loan to be given or taken, free or charge to meet any
contingency. Thus in Islamic banking, the creditors should not take advantage
of the borrower.
For the interest
of the readers, the distinguishing features of the conventional banking and
4.1 Islsmi
banking are shown in terms of a box diagram as shown below:
|
Conventional
Banks |
Islamic
Banks |
|
1. The functions and operating modes of
conventional banks are based on
manmade principles, |
1. The
functions and operating m9odes of Islamic banks are based on the principles
of Islamic Shariah. |
|
2. The
investor is a assured of a pre-determined rate of interest. |
2. In
contrast, it promotes risk sharing between provider of the capital (investor)
and the user of the funds(entrepreneur). |
|
3. it aims at
maximizing profit without any restrictions. |
3. It also
aims at maximizing profit but subject to Shariah restrictions. |
|
4. It does not deal with zakat. |
4. In the
modern Islamic banking system, it has become one of the service oriented
functions of the Islamic banks to collect and distribute zakat. |
|
5.Leding money
and getting it back with interest is the fundamental function of the
conventional banks. |
5.
Participation in partnership business is the fundamental function of the
Islamic banks. |
|
6. Its scope
of activities is narrower when compared with Islamic banks. |
6. Its scope
of activities is wider when compared with a conventional bank.It is in effect
a multi purpose institution. |
|
7. It can
charge additional money compound rate of interest in case of defaulters. |
7. The Islamic
banks have no provision to charge any extra money form the defaulters. |
|
8. In it very
often banks own interest becomes prominent. It makkes no effort to ensure
growth with equity. |
8. it gives
due importance to the public interest. Its ultimate aim is to ensure growth
with equity. |
|
9. For
interest based commercial banks, borrowing from the money market is relatively
easier. |
9. For the
Islamic banks, it is comparatively difficult to borrow money from the money
market. |
|
10. Since income from
the advance is fixed, it gives little importance to developing expertise in
project appraisal and evaluation. |
10. Since it shares
profit and loss, the Islamic banks pay greater attention to developing
projects. |
|
11. The conventional
banks give grater emphasis on credit worthiness of the clients. |
11. The Islamic
banks, on the other hand give grater cmphasis ob the viability of the
projects. |
|
12. The conventional bank,
in relation to its clients, is that of creditor and debtors. |
12. The Status of
Islamic bank in relation to its clients is that of partners, investors and
trader. |
|
13. A conventional
bank has to guarantee all its deposits. |
13 Strictly speaking
and Islamic bank cannot do that. |
4.2
IBBL’s World Rating:
As per Banker’s Almanac(January
1999 edition) published by the Reed Business information, Windsor Court,
England, IBBL’s world rank is 1902 among 4500 banks selected by them. IBBL’s
country rank is 5 among 39 banks as per ratings, made by the above Almanac on
the basis of IBBL’s financial statements of the year 1997.
World
Raking Of IBBL Amongst Top 3000 International Banks:
|
Serial No. |
Year |
World rating |
|
1 |
1994 |
1447 |
|
2 |
1995 |
2314 |
|
3 |
1996 |
2303 |
|
4 |
1997 |
2262 |
|
5 |
1998 |
2119 |
|
6 |
1999 |
2100 |
|
7 |
2000 |
2999 |
|
8 |
2001 |
1902 |
|
9 |
2002 |
1771 |
|
10 |
2003 |
1755 |
|
11 |
2004 |
1581 |
Source: The Bankers Almanac: World
Ranking Road Business Information, U.K. Share!
4.3
Social Walfare Activities:
Islamic Bank Bangladesh Limited is
dedicated itself towards the welfare of society. It has formed a separate
foundation named Islami Bank Foundation with a fund of Taka 38.00 million in
order to conduct social-welfare activities on a broad scale. Since then, islami
Bank foundation is carrying the social
welfare, education , health and medicare activities on behalf of Islami Bank
Bangladesh Limited(IBBL).
The
social wesfare projects of Islami bank Foundation includes:
·
Islami Bank Hospitals.
·
Islami Bank Medical College, Rajshahi.
·
Community Hospitals.
·
Monoram: Islsmi Bank Crafts &
Fashion Houses.
·
Service Centers.
·
Islami Bank Institutes Of Technology.
·
Islami Bank International School And
College.
·
Islami Bank Physiotherapy And Disabled
Rehabilitation Centre..
·
Centre For Development Dialogue.
·
Bangladesh Sangskritic Kendra(Cultural
Centre).
Chapter#5
5.1
Recommendation:
Today’s
post is special request post for all the people who have written in the past
few months asking for a post on writing recommendation letters. A few of these
folks have been letter – writers, but most
of them are the sorry subjects of letters that they were horrified to
have the chance to see. Others are those who have been asked to write their own
recommendation letters by irresponsible and lazy recommenders. I disapprove of this
practice completely. Go ahead and tell me I’m wrong. I don’t care. Recommendations
are to be written By The Person Whose Name Is At The Bottom.
Anyway,
recommendation letter-writing is really a little-understood art, considering
the major role that these letters play in every scholar’s career. And if anyone
thinks those letters aren’t really read – think again. They are taken very, seriously
and pored over and deconstructed, and discussed. And committees, acknowledged
as works of writing in their own right. One time I overheard a colleague, say
to another. “I wanted to tell you that the letter you wrote for was really
terrific. It was a beautiful piece of writing. Nicely done!”
When
I get into that situation with an undergraduate I just tell them plainly that I
can comment on this or that, but that they need a stronger letter than I can
produce. then I ask them about their contact with other professors and help
them find someone else-or cultivate someone else. If it’s a grad student going
on the job market, sometimes one really needs to write the letter since it will
look strange if one doesn’t .Example: There was a woman on my dissertation
committee that I needed to have a letter from so as not to raise suspicion but I
had only arm’s length contact with her (she moved to an another university a
year before I was done). So, she didn’t know me very well but I got a letter
from her in any event suspecting it might say something to the effect that I
was a fine student but that she just hadn’t had that much contact with me. To
solve this, I got four letters (instead of three) so that she was not absent
but the other three(I’m guessing?) ware just more detailed.
There
are key people who must write a job candidate a letter and if for some reason
they can’t write the strongest letter, candidates should just get more letters,
I think Indeed, who writes letters for whom can be highly political and I’ve
seen PHD’s made terrified, miserable and in hire-able when key faculty on their
committee refused to write them a letter of any kind. So be frank about what
you can do but also respectful of the power you wield as a referee.
5.2 Conclusion:
Islami
Bank Bangladesh Limited introduced unconventional way of banking business in
the country. It started its operation in 1943 and ended the initial year of
operation with a total deposit of Tk.14.41 core. The deposit amount rose to Tk
3533.44 core on June 30, 2001 registering a substantial growth. The investment
portfolio of the bank is extended at 2.50 percent for agriculture and rural
investment, 18 percent for industrial term investment, 13 percent for
industrial working capital, 10 percent for housing and real estate, 4 percent
for transport and communication, 0.05 percent for electricity, gas water and
sanitation services, 2 percent for storage, 43 percent for import, export and
local trade and trade related activities, 1 percent for poultry and dairy,2
percent for rural development scheme, 2.50 percent for other special
schemes,0.50 percent for micro-industry and one percent for other productive
purposes.
The overall recovery rate of the bank is 93
percent. Islami Bank has introduced small business schemes micro industries
finance, under the bank finances projects with limit up to Tk 30000 Islami Bank
functions in a market where interest based conventional form of banking covers
about 90 percent of the banking sector. Islami Bank works with the concept of
interest-free banking and it has proved that the new banking with interest free
concept could be successful and expanded in the country.
The
Bank introduced projects like Rural Development Scheme, an investment project
that conforms to social responsibility for the downtrodden in rural areas as
its prime priority. The Rural
Development Scheme has been designed to help improve the living standard of
people, particularly the women in rural areas. The Rural Development Scheme is
an
Unprecedented
success in social upliftment by means of empowering the downtrodden through
economic emancipation. The bank uses depositors funds in interest-free ways in
rural areas where downtrodden people are susceptible to several evil designs of
interest groups.
About
86 thousand people in rural areas, 90 percent of whom are women , are now being
covered under the Rural Development project. Among them, about 72 thousand have
already fully adjusted the disbursed fund. The recovery rate is about 99.7
percent. The bank disburses Tk.3,000-15,000 under the project per person. More
than Tk.90 corer have been disbursed so far under the Rural Development Scheme.
The project is now being operated in about 2200 villages in 45 districts
through 21 branches. The bank is planning to open some new branches in rural
areas to add further pace to its Rural Development Scheme. The scheme allows
investment in production of 21 various agro and agro-related products, food,
cereal and cash crops, off-farm activities like dairy, cow fattening, goat
rearing, poultry, shop keeping, padding, rural transport like, rickshaw,
rickshaw-van, cart etc, irrigation equipment, hand tube-well, housing materials
etc.
The bank is determined to practice Islamic banking which is an alternative to people’s savings. But Murabaha, title being pledged with the bank and Bai Muazzal, title being pledged with the client under hypothecation are the two major modes of Islamic banking. About 41 percent and 21 percent of the Islami Bank’s total investment portfolio are invested in those modes respectively. The bank achieved successes in mobilising deposits and distributing profits. The management of the bank maintains that there is still tremendous potential of expanding Islamic Banking in the country. It has already established that banking without interest is feasible in the country. The bank now expects to contribute to the development of an Islamic Money Market in the country.
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