Presentation on Overall activities & performance of (IBBL)

1. Presentation on Overall activities & performance of (IBBL) www.AssignmentPoint.com

2. MD.Zaiul hoque id:08410007 school of business (bba) www.AssignmentPoint.com

3. What is Islami Bank? Islami Bank Bangladesh Limited (IBBL) the first Shariah based Bank in South-East Asia which was established in 1983 with a view to provide banking services based on Islamic principles. According to the OIC the definition of Islami bank is- “An Islami Bank is a financial institution whose status, rules and procedures expressly state its commitment to the principle of Islamic Shariah and to the banning of the receipt and payment of interest on any of its operations.” www.AssignmentPoint.com

4. Why Islami Bank • The objective of Islami banking is not only to earn profit, but 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 in general and human being in particular. • Islami bank is committed to try its best to do away with disparity and establish justice in the economy, trade, commerce and industry, build socio-economic infrastructure and employment opportunities. www.AssignmentPoint.com

5. IBBL at a glance www.AssignmentPoint.com

6. Conventional vs. Islamic Banking www.AssignmentPoint.com

7. General Banking of IBBL Major Functions of IBBL: • To maintain all types of deposit accounts & General Banking. • To make investment. • To conduct foreign exchange business • Products and services of IBBL • Al Wadeah (Current Account) • Al-Mudaraba(Deposit Accounts) Under Mudaraba Mode: • Mudarabah Savings Account.(MSA) • Mudarabah Term Deposit Account(MTRA) • Mudarabah Special Notice Account.(MSNA) • Mudarabah Hajj Savings Account (MHSA) • Mudarabah Special Savings (MSS) • Mudarabah Saving Bond Scheme(MSBS) • Mudarabah foreign Currency Deposit (MFCD) • Mudarabah Monthly Profit Deposit Account.(MMPDA) • Mudarabah Muhor saving Account(MMSA) • Mudarabah Waqf cash Deposit Accounts (MWCDA) www.AssignmentPoint.com

8. Investment MODES OF IBBL Main Mechanism of Islamic Investments : a) Bai - i) Bai- Murabaha ii) Bai-Muajjal iii) Bai-Salam iv) Bai-Istisna b) Share- i) Mudaraba ii) Musharaka c) Ijarah- i) Ijara Bil Bai ii)Hire Purchase under Sherkatul Melk(HPSM) www.AssignmentPoint.com

9. Foreign Exchange Activities Foreign exchange transactions are includes: Import Export Remittance Trading of currency www.AssignmentPoint.com

10. IMPORT POLICY/EXPORT POLICY Exporter 3. Payment Correspondent Bank 2. Payment order 4. Goods www.AssignmentPoint.com 1. Financial Contract Importer Local Bank

11. Foreign Exchange business of IBBL at a glance: www.AssignmentPoint.com

12. Role of IBBL in Socio-Economic Development Collection of deposit according to shariah principles from poor to rich people Proper channeling of investment funds Capital Formation Investment in Trade Investment in Agriculture Investment in SME Investment in Transport Investment in Garment, Textiles, Electricity Social Welfare through Islami Bank Foundation (Hospital, Medical College, School, Vocational Training) Highest tax provider in Banking Sector of Bangladesh Export, Import, Remittance business www.AssignmentPoint.com

13. Welfare Oriented Investment: Special Schemes SME and Welfare Oriented Special Schemes Special Projects Household Durables Scheme Housing Investment Scheme Real Estate Investment Program: Transport Investment Scheme Car Investment Scheme Investment Scheme for Doctors Small Business Investment Scheme Agriculture Implements Investment Scheme Micro-Industries Investment Scheme Rural Development Scheme (RDS) Mirpur Silk Weavers Investment Scheme Islami Bank Hospital Islami Bank Medical Collage, Rajshahi Islami Bank Community Hospital Monoram: Islami Bank Crafts & Fashion Islami Bank Institute of Technology Islami Bank International School and College Bangladesh Cultural Center Distressed Women Rehabilitation center Islami Bank Nursing Training Institute www.AssignmentPoint.com

14. SWOT Analysis of IBBL Strength Weakness Adequate Finance: Islami Bank Bangladesh Ltd. has adequate finance. That is why they need not to borrow money from Bangladesh Bank or any other banks. More funds for Investment: For adequate financial ability they can provide loan to the more investment clients. It has vast years of experience since its establishment. IBBL is only the Bank which is the pioneer of welfare banking system among all other financial and banking organization. IBBL provides its customer excellent and consistent quality in every service IBBL has already achieved a good will among the clients. IBBL has a research division. IBBL lacks well-trained human resource in some area. IBBL lacks aggressive advertising The procedure of credit facility is to long compare to other banks. Employees are not motivated in some areas. Absence of structured marketing and credit policy Lack of coordination among the branches and Head Office. www.AssignmentPoint.com

15. SWOT Analysis of IBBL Opportunity Threats • Emergence of E-banking will open more scope for IBBL. • IBBL can introduce more innovative and modern customer service. • Many branches can be open in remote location. • IBBL can recruit experienced, efficient and knowledgeable work force as it offers good working environment. • The successful launching and needs to an Islamic Money Market in the country. The worldwide trend of mergers and acquisition in financial institutions is causing problem. Frequent taka devaluation and foreign exchange rate fluctuation is causing problem. Lots of new banks are coming in the scenario with new service. Local competitors can capture huge market share by offering similar products. The rules and regulations of Bangladesh are not favorable for Islami Bank. So they have to face various problems to operate their activities according to Islami Shariah. Lack of skill personnel because of poor salary structure rather than other private banks. www.AssignmentPoint.com

16. SUGGESTIONS • To ensure better customer services coping with the growth of overall business of the Branch additional space may kindly be allocated immediately for the branch. • Evening banking allowance may be increased. • Automation of Foreign Exchange portfolio. • Revision of Foreign Exchange related charges • Ensure reasonable spread and return on assets. • Build good value for sponsors and shareholders. • Formulation of Recruitment / remuneration policy should be outstanding. www.AssignmentPoint.com

17. Conclusion • IBBL is trying to develop banking sector through welfare and servicing to the people. Islami economy and banking are bound together. • Most of the people in our country have a bad impression about IBBL’s operations regarding indirect generation of interest, which means no difference between investments of IBBL loan/credit/advance of conventional banks for this reason. They are not much interested to investment with IBBL because majority of our people have no proper knowledge about the activities of Islami banking as well as its investment mechanisms. • Significant growing of IBBL has encouraged the traditional banks to open Islamic banking window, like –HSBC, Dhaka Bank Ltd., Prime Bank Ltd,Bank Asia, The city Bank Ltdetc. • To conclude we must say that, Islami bank Bangladesh Limited (IBBL) has immense potential in Bangladesh. It can play vital role in bringing revolutionary changes in our life with both material and moral world and in individual and collective level. www.AssignmentPoint.com

18. End of the presentation www.AssignmentPoint.com