Professional Documents
Culture Documents
CSR Part 3
CSR Part 3
PART 2-
ORGANIZATIONAL PART
Islami Bank Bangladesh Ltd is a banking company registered under the companies Act
1994 with its Head office at IBBL tower 40 Dilkusha Commercial Area, Dhaka, Bangladesh
IBBL undertakes all types of banking transactions to support the development of trade and
commerce of the country. IBBLs services are also available for the entrepreneurs to set up new
ventures and BMRE of industrial units. The Bank gives special emphasis on Export Import,
Trade Finance, SME Finance, Retail Credit and Finance to Woman Entrepreneurs.
To provide clientele services in respect of international Trade it has established wide
correspondent banking relationship with local and foreign banks covering major trade and
financial centers at home and abroad. Islami Bank Bangladesh Ltd., the only Bengali
named new generation private commercial was established by a group of winning local
entrepreneurs conceiving an idea of creating a model banking institution with different outlook
to other the valued customers, a comprehensive range of financial services and innovative
products for sustainable mutual growth and prosperity. The sponsors are reputed personalities
in the field of trade, commerce and industries. The Bank is being managed and operated by a
group of highly educated and professional team with diversified experience in finance and
banking. The scenario of banking business is changing environment. Islami Bank
Bangladesh Ltd. has already achieved tremendous progress within only two years. The
Bank has already ranked the top out as a quality service provider & is known for its reputation.
Islami Bank Bangladesh Ltd. Offers different types of Corporate and Personal Banking
services involving all segments of the society within the purview of rules and regulations laid
down by the Central Bank and other regulatory authorities.
Organizations are open system that needs careful management. Islami Bank Bangladesh
Ltd discreetly pursues the principles of openness, disclosure and compliance to regulatory
authorities, transparency in performance, integrity in dealings, ethics in banking and
accountability to the shareholders in corporate governance. Islami Bank Bangladesh Ltd
is pledge-bound to keep it free from the clutches of loan default culture. All units are the
centers of excellence. The underlying commitment of the bank is professionalism and a single-
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Organizational Part CSR Of IBBL
minded devotion to service to its customers which characterizes its style in all operations. The
bank involves with the changing needs of its customers and the processes go on.
The operation hour of the Bank is 10:00 A.M. To 6:00 P.M. from Sunday to Thursday with
transaction hour from 10:00 A.M. to 4:00 P.M. The Bank remains closed on Friday, Saturday and
government holidays.
The Bank ensures orderly relations between clearly defined functions of the Board of Directors
and the management. Their role remains sharply bifurcated. The Board formulates policies and
frames procedures. Be management implements them and acts within norms. The management
enjoys full independence in managing the banking industry, especially its credit portfolio
without any undue influence from outside. It, however, functions in a reutilized, efficient,
suitable and dynamic way to foster progress, promote general welfare of the society and infuse
its people to serve the nation. In corporate governance, we strictly comply with the requirement
of companies Act-1994, Bank Companies Act 1991, rules and regulation of Bangladesh Bank
and other regulatory authorities.
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Particulars Date
Established on : 13th March 1983
Certificate for Commencement of Business : 27th March 1983
Inauguration of 1st Branch : 30th March 1983
Formal Inauguration : 12th August 1983
Shariah Supervisory Committee : 1983
CSR/Foundation activities : 1983
IPO : 1985
Authorized Capital : Tk. 20,000.00 Million
paid-up Capital : Tk. 16099.91 million
Deposits : Tk. 615,359.00 million
Investment : Tk. 530,194.00 million
(including Investment in Shares)
Listing in Dhaka Stock Exchange Ltd. : 2nd July1985
Listing in Chittagong Stock Exchange Ltd. : 7th March1996
Accommodation of IBBL Head Office in its own : 10th March 2000
Tower
1st Rights Share issue : 1989
2nd Rights Share issue : 1996
3rd Rights Share issue : 2000
4th Rights Share issue : 2003
Opening of 100th Branch : 12th June 1997
Opening of 200th Branch : 21st June 2009
Opening of 250th Branch : 15th December 2010
Joining/Agreement with CDBL : 29th December 2004
In-house Core Banking Software : 2005
IBBL Mudaraba Perpetual Bond (MPB) Issue : 25th November 2007
Inauguration of Broker House : 1st January 2008
Formation of Subsidiary Companies of IBBL
A. Islami Bank Securities Limited : 22nd March 2010
(IBSL)
B. Islami Bank Capital Management : 1st April 2010
Limited (IBCML)
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Organizational Part CSR Of IBBL
1st Position of IBBL in Inward Remittance : 2007, 2008, 2009 & 2010
100% Branch Online Banking : 7th January 2011
Launching of i-Banking : 21st June 2007
Launching of Islami Bank m-Cash : 27th December 2012
Table No. 01
Ref: ibblbankbd.com (2015)
IBBL started its banking operations with an authorized and paid up capital of Taka 500 million
and Taka 67.50 million respectively. But it is boost up now. Now its authorized Capital is Taka.
20,000.00 Million and paid-up Capital Tk. Tk. 16099.91 million, Deposits Tk. 615,359.00
million, Investment (including investment in Shares) Tk. 530,194.00 million As per Capital
Adequacy Policy prescribed by Bangladesh Bank, the Central Bank of the Country, banks has
maintained Capital on its Risk-Weighted Assets against which total equity of the Bank as on
stood at. This was:-
Table no-02
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Organizational Part CSR Of IBBL
Official Logo
Chairman Arastoo Khan
Managing Director Md. Abdul Hamid Miah
Number of Branches 318
Number of Employees 13,662
Website www.islamibank.com.bd
Organogram of IBBL
BOARD OF DIRECTORS
Shariah Review
CHAIRMAN
Committee
Executive Audit
Committee Committee
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Organizational Part CSR Of IBBL
Managing Director
Branch Manager
Second Officer
Management Developer
General
Banking
Foreign
Investment GB Officer
Exchange
3.3.3 Major Operational Difference between Conventional Banking System and Islamic
Banking System:
1. The functions and operating modes 1. The functions and operating modes of
of conventional banks are based on Islamic banks are based on the principles of
Manmade principles. Islamic Shariah.
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Organizational Part CSR Of IBBL
10. Since income from the advances 10. Since it shares profit and loss, the Islamic
is fixed, it gives little importance to banks pay greater attention to developing
developing expertise in project project appraisal and evaluations.
appraisal and evaluations.
11. The conventional banks give 11. The Islamic banks, on the other hand, give
greater emphasis on credit- greater emphasis on the viability of the
worthiness of the clients. projects.
12. The status of a conventional bank, 12. The status of Islamic bank in relation to its
in relation to its clients, is that of clients is that of partners, investors and trader.
creditor and debtors.
13. A conventional bank has to 13. Strictly speaking, and Islamic bank cannot
guarantee all its deposits. do that.
14. Is based on interest. 14. Is based on Profit and Rent
15. Does not involve itself in trade or 15. Actively participates in trade, production
business. and valid contracts.
Figure 6: Conventional Banking System Vs Islamic Banking System
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Organizational Part CSR Of IBBL
Corporate governance is a fundamental part of the culture and business practice of IBBL which
is directed and controlled by the board of directors and who are responsible for ensuring the
management, maintains a system of internal control to provide assurance of effective and
efficient operations, internal financial controls with laws and regulations. Corporate culture
composed of their belief, expectation, ethics, preferences and knowledge. IBBL corporate culture
is different than other commercial banks. Because of IBBL follows Islamic sariah based
principle. Ultimately their corporate culture is moving in accordance with Islamic sariah. Such as
during their work time they do their prayers. Whereas, they believe that they need to follow all
Islamic rules and regulations. Due to do their banking activities they work with interest for
investment and deposit but they call profit rate instead of interest rate. Particularly they started so
many Islamic terms for their customers. Meanwhile, their ethics and preferences is that they will
provide Islamic banking for society.
Our goal is to establish and maintain the modern banking techniques, to ensure 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 systems.
We will try to encourage savings in the form of direct investment.
We will also try to encourage investment particularly in projects, which are more likely to
lead to higher employment.
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Organizational Part CSR Of IBBL
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Organizational Part CSR Of IBBL
Capital is the primary resource of Islami Bank Bangladesh Limited and there are four major
suppliers (various other suppliers [like fees] contribute to a lesser degree) of capital in the
industry.
1. Customer Deposits.
2. Mortgage loans.
3. Mortgage securities.
4. Loans for other financial institutions.
By utilizing these four major suppliers, the bank can be sure that they have the necessary resources
required to service their customers' borrowing needs while maintaining enough capital to meet
withdrawal expectations. The power of the suppliers is largely based on the market, their power is
often considered to fluctuate between medium to high.
5. Competitive Rivalry:
The banking industry is considered highly competitive. Banks must attempt to lure clients away
from competitor banks. They do this by offering lower financing, higher rates, investment services,
and greater conveniences than their rivals. The banking competition is often a race to determine
which bank can offer both the best and fastest services, but has caused banks to experience a lower
ROA (Return on Assets).
Given the nature of the industry it is more likely to see further consolidation in the banking
industry. Major Banks tend to prefer to acquire or merge with other banks than to spend money
marketing and advertising.
The SWOT analyses provide a useful strategic guidance. A SWOT analyses (Strength, weakness,
Opportunity, Threats) allows in the constructing balance sheet of the Bank. In the analyses one
can bring together all the internal factors, influencing organizations strength and weakness.
Based on these factors we can identify external factors which can help to define opportunities
and threats that a company faces due to competitive forces and trends in the business
environment. SWOT of IBBL on particular case of financing in Investment modes Sector may
be of the followings:
Strengths
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Organizational Part CSR Of IBBL
Opportunity
Threats
Weakness
3.8.1 IFAS:
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Organizational Part CSR Of IBBL
Weaknesses
Long term process to 15 3 45 Long term process
provide investment
Lack of decoration facility 10 1 10 Lack of decoration facility
3.8.2 EFAS:
Opportunities
Run the new investment scheme for 20 5 100 Run the new
the customer investment scheme
Threats
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Organizational Part CSR Of IBBL
3.8.3 SFAS:
S1.Foreign Trade 15 5 75
Operation
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Organizational Part CSR Of IBBL
Strengths Opportunities
-Long term process to Islami Bank Bangladesh ltd Islami Bank Bangladesh ltd should use
provide investment should manage their their opportunities to reduce their
weakness to be stronger in weaknesses.
-Limited number of
the competitive market.
employees
-Political Barriers Islami Bank Bangladesh ltd Islami Bank Bangladesh ltd should use
should use its strengths to its strengths and opportunities to
-A new competitor in home
overcome the threats of reduce their threats inside and outside.
market
Competitive Market.
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Organizational Part CSR Of IBBL
-Procedural delay in
decision making
Political Factors:
Banking activities are governed by the authority of Bangladesh Bank which is a self-driven
regulatory body. There are some regulations from the government but those are not those much
difficult to set up a bank. Thats why government has given permission to set up 10 more new
banks in Bangladesh. And the existing banks as well as also increasing their branches around the
whole country day by day. In 2013 IBBL is planning to open 7 more branches which shows the
political factors to conduct banking activities is not that much rigid and difficult.
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Organizational Part CSR Of IBBL
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Economic Factors:
Bangladesh Economy is showing a mixed illustration about the true economic condition of the
country. Corporate sector is also developing. There deposit in the bank is showing that
Bangladesh is facing a positive result of industrialization. Again, the recent collapse in the stock
market is showing a negative picture. But whatever the situation is, it is very favorable for banks.
Due to positive results of industrialization deposits are increasing in the banks. Again, due to the
collapse in the stock market many people are withdrawing their money from the stock market
and investing in banks. So the situation is favorable for banking activities.
Socio-Cultural Factors:
Lifestyle of people in Bangladesh is developing day by day. Gradually, they prefer high class
products. Literacy rate is increasing. People are becoming more aware about the banking
activities. So they trust more on banks to deposit and save their money. Because investment in
bank is more secured than the other investments. These issues are causing favorable condition to
conduct banking activities.
Technological Factors:
Technology for banks is improving day by day. Banks are providing ATM cards to their client
which makes the clients able to withdraw money from anywhere and from booth of any banks
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Organizational Part CSR Of IBBL
without cheque just applying only a PIN number. Credit cards are issued to the clients to conduct
their financial transaction in anywhere they want. Cheque clearing is becoming very easy.
Instead of manual Outward Bill Clearing, banks are doing electronic cheque clearing which
makes it easy to send the cheques to the Bangladesh Bank computer within a few seconds and
return it to the particular clearing department of a bank. Nowadays banks are also facilitating the
mobile banking which makes it able to reach the money through a SMS and PIN number to the
receiver. Online transaction is done regularly to transfer money from one bank to another bank
and from one branch to another branch.So all these technological factors are making the banking
business easier.
The Board of Islami Bank Bangladesh Limited has been conscious of our corporate social
responsibilities from the very beginning. In fulfilling our obligations, the Board of Directors, in
consultation with the management, has been providing support and resources for the various
activities Islami Bank Bangladesh Limited is dedicated itself towards the welfare for the society.
It has formed a separated 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).
Corporate Resource:
The organization activities depend on organization Marketing, Finance, Human Resource and
Information System (IS) departments. So, all departments are responsible to increase the
organizations activities and performance.
Marketing Activities:
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Organizational Part CSR Of IBBL
IBBL has done so many promotional works. They have used print advertisements in newspapers.
They also promote themselves by sponsoring in the Bangladesh Premier League (BPL). They
have also broadcasted many programs in television to promote themselves.
Human Resource:
Human resource is the most valuable asset for the bank. Bank plans to hire, develop and retain
the human resource base with the right level of skills and talent to meet current and future
challenges. The employees of the bank are given on the job training and sent to different training
program, seminar and workshop at home and abroad. Islami Bank Bangladesh Limited (IBBL)
try to create a mutual trust and dignity and its investment in Human resource development is key
to sustainable profit.
IBBL continues to boldly expand its reach offering service and convenience to a wider
customer base. In the backstage of this expansion is the relentless support of IBBL ITs. It is
committed not only to support and maintain IBBL continuously expanding network and delivery
channels but to exploring and adapting new technologies in order to continuously improves and
enhances internal and external services to excel in a fast-paced and competitive industry. It has
carried out a number of projects and enhancements in 2013.
Deposit Products
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Organizational Part CSR Of IBBL
Bai-Murabaha
Bai-Muajjal
Bai-Istijrar
Bai-Salam
Bai-Salam (Pre-shipment)
Mudaraba
Musharaka
Musharaka Documentary Bill (MDB) Inland
Musharaka Documentary Bill (MDB) in Foreign Currency
Musharaka Investment in Potato Storage
Hire Purchase under Shirkatul Melk (HPSM)
Murabaha Post Import (MPI)
Murabaha Import Bills (MIB)
Murabaha Import LC
Murabaha Foreign Currency Investment (MFCI) under EDF
Murabaha Foreign Currency Investment (MFCI) under Balance of MFCD A/C
Bai-Muajjal Back to Back Bills
Bai-as-sarf (Foreign Documentary Bill: FDB)
Bai-as-sarf (Foreign Currency Cheques/Drafts: FCD)
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Others
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