Annual Report 2022

ANNUAL REPORT 2022 1
2 ANNUAL REPORT 2022

Towards Universal Banking
Offering all possible financial services within the Shariah framework has
been thrust of Islami Bank Bangladesh Limited in its four decade long
journey. Having reached at this juncture, the premier financial institution
of the country is committed to encompassing every nook & corner of the
land even with presence beyond the border for spreading its welfare
services. Being all time development partner of country’s growing
economy, IBBL has implanted a special tree of hope and aspirations
among down trodden people of this country of immense potential.
While this planet passes ever changing era of technology alongside
diversified uncertainty, we, at IBBL, cherish for a prosperous tomorrow
working for millions of the customers and the stakeholders as a whole.
Having been aligned with ensuring welfare for everyone as part of the
Maqasid Al-Shariah (Objective of Islamic Jurisprudence), IBBL has over
the years been playing active role in fulfilling the dreams of building a
caring financial ecosystem.

REGISTERED OFFICE
Islami Bank Bangladesh Limited

Islami Bank Tower
40, Dilkusha Commercial Area
Dhaka-1000, Bangladesh
Mobile: (+88) 01711-435638, (+88) 01711-435639

FAX: (+88-02) 223388634
Phone: PABX- (+88-02) 223384816, 223383040
Contact Center: (+88-02) 8331090 or 16259
SWIFT: IBBLBDDH
E-mail: info@islamibankbd.com
Website: www.islamibankbd.com

MESSAGE FROM THE
HOLY QUR’AN
10 :
Then when the Salat (prayer) is finished, you may
disperse through the land, and seek the Bounty of Allah
(by working, etc.), and remember Allah much, that you
may be successful.
(Surah Al-Zumu'ah : 10)
172 :
You who believe, eat of the good things that We have

provided for you and be grateful to Allah if you worship
only Him.
(Surah Al-Baqarah : 172)
58 :
Surely, Allah commands you to deliver trusts to their
owners and that when you judge between people, judge
with justice.
(Sura Nisa :58)
32 :
And those who are careful about their trusts and covenants.
(Surah Al Maàrij : 32)

Corporate Governance
GUIDANCE FROM THE

HOLY HADITH
Abu Bakr (R) narrated that the Messenger of Allah (‫)ﷺ‬

said: A body that is nourished by haraam will not enter
into Paradise.
(Bayhaqi)
Abu Sa'eed narrated that the Prophet (‫ )ﷺ‬said: "The

truthful, trustworthy merchant is with the Prophets, the
righteous persons and the martyrs."
(Jami` at-Tirmidhi)
Abu Hurairah (RA) narrated: Allah's Messenger (‫)ﷺ‬

said: "Give back what has been entrusted (to you) to him
who has entrusted you and do not violate the trust of him
who violates your trust."
(Tirmidhi and Abu Dawud)
Abu Huraira traced to the Prophet (‫ )ﷺ‬the statement that

Allah is great and glorious says, “I remain a third with two
partners as long as one of them does not cheat the other,
but when anyone cheats other I depart from them."
(Abu Dawud)

ISLAMI BANK BANGLADESH LIMITED ANNUARL REPORT 2023 02
CONTENTS
8-41 109-149
Company Ethos Corporate Governance
Letter of Transmittal 8 Corporate Governance Report 109-126
Notice of 40th AGM 9 Credit Rating Status 127
Vision 10 Dividend Distribution Policy 128-129
Mission 11
CEO and CFO’s Declaration to the Board 130
Strategic Objectives 12
Core Values & Commitments 13 Certificate on Compliance of Corporate Governance 131
Code of Conduct and Ethical Principles 14 Compliance Status of BSEC Guidelines 132-146
Awards & Accolades 15-17 Integrated Reporting 147-149
Forward Looking Statement 18-19
Chairman’s Message 20-27
Managing Director’s Review 28-36
Corporate Milestones 37-39
Sponsors & Placement Holders 40-41
42-76 150-181
Corporate Structure Risk Management
Corporate Information 42-43 Report of Risk Management Committee 150-152
Corporate Organogram 44-45 Risk Management Report 153-158
Board and its Committees 46-50 Capital Plan 159
Shari’ah Supervisory Committee 51 Disclosure on Risked Based Capital (Basel III) 160-176
Management Committee (MANCOM) 52 Non-Performing Investment Management 177-178
Senior Executives 53-54 Stakeholder and Materiality 179-181
Directors’ Profile 55-76
77-108 182-193
Directors’ Report Sustainability Report
Introduction 77-79 Sustainability Reporting Process 182-185
Corporate Profile 80-83 Green Banking 186-187
Financial Review 83
Corporate Social Responsibility 187-189
Business Model 83-85
Business Review: 86-107 ICT & ADC Management 190-193
Depositors & Deposit 86-88
General Investment 89-94
CMSME Investment 95-96
Micro Investment: RDS & UPDS 97-101
Agent Banking Operation 101-103
Sub-Branch Operation 103-104
6 Foreign
ANNUAL Trade
REPORT 2022 & Offshore Business 105-107
CONTENTS
194-237 251-327
Management Report and Analysis Financial Statements - IBBL
Business & Financial Overview 195-196 Balance Sheet 251-252
Report on Financial Inclusion 197 Profit and Loss Account 253
Products and Services 198-199 Cash Flow Statement 254
Stakeholders’ Information 200-203 Statement of Changes in Equity 255-256
Graphical Presentation 204-206 Liquidity Statement 257
Segment Information 207
Notes to the Consolidated Financial Statements 258-327
Horizontal & Vertical Analysis 208-209
Profitability, Dividends, Performance and Liquidity Ratios 210
Statement of Value Added 211
Integrated Repoting 212-213
Financial Calendar 214
Financial Highlights 215
Five Years Performance 216-217
Report of the Shari’ah Supervisory Committee 218
Audit Committee Report 219-221
Brand Management 222-223
Success Story 224-234
Media Highlights 235-236
Publications 237
238-327 328-376
Reports & Financial Statements Financial Statements –Subsidiaries & OBU
Independent Auditors’ Report 238-243 Financial Statements - OBU 328-333
Financial Statements - IBBL 244-327 Financial Statements - IBSL 334-360
Financial Statements - IBCML 361-376
245-250 377-384
Consolidated Financial Statements Others
Consolidated Balance Sheet 245-246 Standard Disclosure Index 377-379
Consolidated Profit and Loss Account 247 Bank’s Network 380-382
Consolidated Cash Flow Statement 248 Glossary of Terms 383
Consolidated Statement of Changes in Equity 249-250 Proxy Form & Attendance Slip 384

Letter of Transmittal
All Honourable Members/Shareholders,

Bangladesh Bank,
Registrar of Joint Stock Companies and Firms,
Bangladesh Securities and Exchange Commission,
Dhaka Stock Exchange Limited and
Chittagong Stock Exchange Limited
Subject: Annual Report for the Year ended December 31, 2022
Dear Sir,
Assalamu Alaikum.
Please find an enclosed copy of the Annual Report along with the audited Financial Statements including consolidated and separate Balance
Sheet as at December 31, 2022 and Income Statements, Cash Flow Statements and Statement of Changes in Equity for the year ended
December 31, 2022 along with the notes thereon of Islami Bank Bangladesh Limited and its subsidiaries (Islami Bank Securities Limited and
Islami Bank Capital Management Limited) for your kind perusal and record.
Thank you
Yours faithfully,
(J Q M Habibullah FCS)
AMD & Company Secretary

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Head Office, Islami Bank Tower
40, Dilkusha Commercial Area, Dhaka-1000, Bangladesh
NOTICE OF THE 40TH ANNUAL GENERAL MEETING
Notice is hereby given that the 40 Annual General Meeting of Islami Bank Bangladesh Limited will be held on Thursday, the 22nd
th
June, 2023 at 11.30 A.M through Digital Platform to transact the following businesses:
Agenda
Ordinary Business :
1) To receive, consider and adopt the Audited Financial Statements of the Bank for the year ended 31st December, 2022 along
with the Reports of the Auditors' and the Directors' thereon.
2) To declare Dividend for the year ended 31st December, 2022 as recommended by the Board of Directors.
3) To appoint/re-appoint Statutory Auditors for the year 2023 and to fix their remuneration.
4) To approve appointment of Independent Director(s).
5) To appoint Corporate Governance Compliance Auditors for the year 2023 and to fix their remuneration.
6) To elect / re-elect Directors.
Special Business:
To adopt the change of registered name of the Bank to “Islami Bank Bangladesh PLC.” from “Islami Bank Bangladesh Limited” as
per provision of the Companies Act, 1994 (2nd amendment 2020) and to amend the relevant clauses of the Memorandum and articles of the
Articels of Associations of the Bank by adopting the following special resolution:
“RESOLVED THAT the proposal of changing of registered name of the Bank to “Islami Bank Bangladesh PLC.” from “Islami Bank
Bangladesh Limited” in accordance with the Companies Act 1994 (2nd amendment 2020) and amendment in the relevant clauses of the
Memorandum and articles of the Articels of Associations of the Bank be and are hereby approved subject to approval of regulatory authorities.
Accordingly the old name of the Bank will be replaced by the new name in all the statutory / title documents, licenses and other relevant
documents”.
By order of the Board
Dated: Dhaka (J Q M Habibullah FCS)

27th April 2023 AMD & Company Secretary
Notes:
a) Members whose names appeared in the Members / Depository Register on Record Date i.e. 22nd May, 2023 will be eligible to participate
and vote at the Annual General Meeting through Digital Platform and to receive the dividend.
b) Pursuant to the Bangladesh Securities and Exchange Commission’s (BSEC) Order No. BSEC/CMRRCD/ 2009-193/08 and SEC/
SRMIC/94-231/91 dated 10 March 2021 & 31 March 2021 respectively, the AGM will be a virtual meeting of the Members, which will
be conducted via live webcast by using Digital Platform.
c) Link for joining in AGM through Digital Platform and details log in process will be notified to the respective email address. Full log in
/ participation process for the Digital Platform meeting will also be available in the Bank’s website: www.islamibankbd.com.
d) A member eligible for participating and voting at the Annual General Meeting may appoint a proxy on his / her behalf. Power of
Attorney / Proxy Form must be submitted to the Registered Office or Share & Bond Division (63 Dilkusha C/A, 5th Floor, Dhaka) of the
Company at least 48 (Forty Eight) hours before the Meeting i.e. 11.30 A.M. on Tuesday the 20th June, 2023. Revenue Stamp of Tk.20/-
(Taka Twenty) only shall have to be affixed on the Proxy Form.
e) As per Bangladesh Securities and Exchange Commission (BSEC) Gazette Notification No.BSEC/ CMRRCD/2006-158/208/admin/81,
dated 20th June, 2018, soft copy of Annual Report along with the Attendance Slip, Proxy Form and the Notice will be forwarded
to all the members at their respective email addresses available in their beneficiary owner (BO) accounts as per CDBL record.
Member may collect the printed copy of the Annual Report from the Registered Office or Share & Bond Division (63, Dilkusha
C/A, 5th Floor, Dhaka) if required in writing beforehand. Soft copy of Annual Report for the Year 2022 shall be available on Bank’s
website: www.islamibankbd.com.
f) Election of Directors will be dealt in terms of Articles of Association of the Bank and relevant rules/laws/circulars in force.

VISION
Our vision is to always strive to achieve superior financial performance, be
considered a leading Islami Bank by reputation and performance.
Our goal is to establish and maintain modern banking techniques, to ensure

soundness and development of the financial system based on Islamic
Principles and to become a strong and efficient organization with highly
motivated professionals, working for the benefit of people, based on
accountability, transparency and integrity to ensure stability of the 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.

MISSION
To establish Islamic Banking through introduction of a welfare oriented
banking system and also ensure equity and justice in all economic activities,
achieve balanced growth and equitable development through diversified
investment operations particularly in the priority sectors and less developed
areas of the country.
To encourage the socio-economic development and financial services to the

low-income community particularly in the rural areas.

STRATEGIC
OBJECTIVES
Strategic Objectives
The general strategic objectives of IBBL are to consider balanced scorecard
methodology and continually adhere to the same through annual reviewing
while some specific objectives are mentioned below:
Financial Efficiency
Achieve sustainable growth in all key financial indicators;
Increase bottom line through maximization of income and efficient
management of expenditure.
Customer Focus
Develop strategic partnership through addressing existing and potential
needs of product and services;
Endeavor to attract customer through delivering need based financial
services;
Continuous improvement of product and services for adopting changing
need of customer base to retain market share.
Operational Excellence
Include unbanked people into banking net with Over the Counter banking
services;
Increase efficiencies through use of virtual technologies for moving
towards of financial excellence;
Increase community outreach through innovation of various marketing
channels;
Improve internal and external communications through social
communication network;
Develop and implement a promotional plan to expedite financial inclusion;
Human Development
Employ professionals who create success for customers;
Develop the leadership abilities and potential of our team;
Align incentives and staff rewards with performance;
Continually learn and adopt global updated best practices.

Core Values & Commitments
Adherence to Islamic Shari’ah

Islamic Financial System is the source of all strength and inspirations.
Principles of deposit, investment and operational ethics are guided by Islamic Financial System.
Ensuring Halal income for the depositors and shareholders.
Abstaining from financing in any area deemed to have been Haram.
Welfare Banking
Ensuring justice and fairness in all economic activities.
Achieving balanced growth and equitable development.
Inclusion of the unbanked population in the banking channel.
Socially Responsible Banking

Abstaining from financing in any socially and environmentally undesirable project.
Expanding investment to foster the need-based retail and priority sectors.
Promoting the green initiative in minimizing the carbon emission.
Integrity
Performing in accordance with the rules and responsibilities.
Protecting the rights and privileges of the stakeholders.
Maintaining equilibrium between the words and action
Commitments
Strict compliance to all regulatory requirements.
Optimum care and courtesy to all stakeholders.
Efforts in ensuring continuous quality improvement.
Satisfying clients through effective service delivery.

Code of Conduct and Ethical Principles
ShariÈah foundation of ethics

Avoidance of interest (Riba) in all financial transactions
Ensuring welfare and justice to all the stakeholders
Righteousness in dealing with the day to day affairs
Ensuring transparency & avoidance of obscurity (Gharar)
Principles of personnel ethics

Trustworthiness in discharging the assigned duties
Dedication in abiding by the rules and regulations
Commitment in making actions pure and perfect
Adherence to the truth and avoidance of falsehood
Discharging the responsibilities with honesty and integrity
Rules of ethical conduct

General Code of Conduct of the Bank
Guidelines of National Integrity Strategy
Gender Equality & Prevention of Sexual Harassment Policy
Disciplinary procedures to deal with the violations
Conduct towards shareholders, managers and fellow employees

Preserving the benefits and interest of the shareholders
Maximizing company profit and managing the same ethically
Providing fair and equal employment opportunity
Ensuring gender equality in the workplace
Eliminations of all sorts of gender discriminations
Ensuring logistic support for employee satisfaction
Providing opportunities for professional development
Adherence to good corporate governance practices
Refraining from any sort of favoritism and biasness
Appreciating the value of individual & team contribution
Rules of conduct towards those who deal with the institution and related parties
Ensuring prompt & responsive approach to the customer needs
Treating the customers fairly and without any prejudice
Ensuring privacy/secrecy of customers/stakeholders information
Updating the customers regarding suspicious transactions in their accounts.
Informing the customers regarding all banking products & services
Acknowledging the norms, customs, values of the community/society
Treating the external counter-parties professionally and impartially
Avoiding conflict of interest while negotiating with the counter-parties

AWARDS & ACCOLADES
IBBL is the first Bangladeshi Bank listed among the World’s Top 1000 Banks ranked by UK’s financial intelligence
magazine ‘The Banker’. IBBL first appeared in the list in 2012 and secured its position every year since then.
IBBL achieved the ‘Best Bank in Bangladesh’ Award in the South Asian Business Excellence Awards 2022 presented by
South Asian Partnership Summit.
IBBL achieved the top performing banking award in sustainability rating by Bangladesh Institute of Bank Management
(BIBM) in 2022.
IBBL was awarded Bangladesh Bank Remittance Award in 2021 & 2022.
IBBL was awarded The Strongest Bank by Balance Sheet in Bangladesh and Strongest Islamic Bank by Balance Sheet
in Bangladesh by The ASIAN BANKER in 2022.
IBBL was awarded Top 10 Remittance Gold Award 2023 by Centre for NRB for outstanding remittance services.
Institute of Cost and Management Accountants of Bangladesh (ICMAB) awarded IBBL ICMAB National Best
Corporate Award– 2021 and every year since 2010.
IBBL achieved 8th National Award 2021 and National Gold Award 2019 by Institute of Chartered Secretaries (ICSB) of
Bangladesh.
IBBL achieved ‘Best Retail Bank in Bangladesh’ award in the category of ‘Excellence in Retail Financial Services
2021conferred by The ASIAN BANKER.
Uk-based the Global Islamic Finance Awards (GIFA) awarded IBBL ‘’Most Outstanding Islamic Bank Award-2021’’.
IBBL has been recognized as sustainable bank in the Sustainability Ranking by Bangladesh Bank in 2021.
World’s largest electronic fund transfer network VISA has conferred two awards to IBBL i.e. ‘Excellence in Product
Innovation’ and ‘Excellence in Prepaid Card business’ for 2019-2020.
IBBL has been awarded as the 2nd highest taxpayer in banking sector in 2019-2020 tax year.
IBBL was awarded as the highest taxpayer in the banking sector by the National Board of Revenue for 2021-2022 and
4 previous sessions.
The global Council for Islamic Banks and Financial Institutions (CIBAFI) conferred IBBL ‘World’s Best Islamic Bank
CIBAFI Award 2019’ for Investment Innovation in MSME Financing.
Cambridge IF Analytica, a UK-based financial intelligence house has conferred IBBL ‘Strongest Islamic Retail Bank in
Asia 2021and 2019’ and ‘Strongest Retail Bank in Bangladesh- 2018’ Awards.
Islamic Finance News, based on Malaysia, conferred IBBL ‘Best Islamic Bank in Bangladesh’ award 2018.
Institute of Chartered Accountants of Bangladesh (ICAB) awarded IBBL ‘20th ICAB National Award’ for best presented
annual reports 2019’ under of Corporate Governance category. ICAB also conferred IBBL the 2nd position for good
Corporate Governance for the year 2016.
The Global Finance, a reputed USA-based Financial Magazine, adjudged IBBL as the best Islamic Financial Institution
of Bangladesh five times during the years 2008 to 2013.
Bangladesh Bank and SME Foundation jointly conferred the prestigious award - the best ‘Small Entrepreneur Friendly
Bank of the Year’ in 2014 to IBBL considering its contribution to SME financing.
IBBL has been awarded Bangladesh Bank Remittance Award for collecting highest remittance in the year 2022 and
every year since 2017.
IBBL has been awarded Gold Medal in 2019 and 2016 by Centre for Non-Resident Bangladeshi for highest foreign
remittance collection.
IBBL was awarded the ‘Sardar Patel Award’ 2016 for outstanding contribution in Sustainable Economic Development.
IBBL also won “Bank of the Year Award” conferred by ‘The Banker’ for the Year 2016. The award is regarded as the
Oscar in banking industry. Islami Bank is the only Bangladeshi Bank awarded ever by The Banker.

ICMAB Best Strongest Strongest
Corporate Islamic Retail Bank Islamic Retail Bank
Award 2021 in Bangladesh 2022 in South Asia 2022
Tax Card GIFA Global South Asian Business

recognition Islamic Finance Award Excellence Award 2022
2022 Most Outstanding
Islamic bank 2021
CIBAFI Award Excellence in THE ASIAN

Mastercard BANKER
Islami Product AWARD
Tax Card ICAB NATIONAL Bangladesh Bank

Award 2021 AWARD for Best Remittance Award
Presented
Annual Reports

Excellence in Excellence in Excellence in
Prepaid Cards Business Product Innovation Islamic Banking Card
2022 2022 Business 2022
Strongest Bank by Bangladesh Bank Bangladesh Bank

Balance Sheet & Strongest Remittance Award 2020 Remittance Award 2019
Islamic Bank by Balance Sheet
in bangladesh 2022
Listed among The Banker’s Tax card

Recognition 2022 Recognition for 2021-2022
FORWARD
LOOKING STATEMENT

Forward Looking Statement
The Annual Report-2022 of Islami Bank Bangladesh Limited has stated forward-looking statements in its different parts.
Forward looking is someone or something with an eye to the future and a focus on what is coming. It often predicts expected
future business and financial performance. It contains words such as expect’, ‘anticipate, believe, seek, will, may, would,
presume, assure, hope, so on and so forth. A forward-looking statement naturally addresses matters that are, to certain degrees,
uncertain and may not happen. In most cases, a forward-looking statement been made in respect of company’s expected
income, earning, business growth, horizontal expansion, cost structure, capital structure, dividends etc. Such a statement was
made based on some assumptions about future events, which may happen or may not happen. The following major factors that
may affect overall business conditions of the Bank are mentioned below:
 Changes in national economy, political and financial conditions, changes in the government’s adjustments and control
policies, and regulatory issues, securities and capital markets behavior including changes in market liquidity and volatility,
global economic downturn including a significant decline in global trade volumes;
 Global unrest in Middle-east countries affecting flow of remittances and trade;
 Changes in fiscal, monetary and trade policies;
 Natural catastrophes and political disturbances;
 Changes in consumer behaviors, technologies and commodity price;
 Changes in financial and capital market;
 Changes in interest rates and forex rates locally and internationally;
 Changes in international business pattern in post COVID and Ukrain War
 Changes in legal and regulatory framework;
 Changes in Cash Reserve Ratio (CRR) and Statutory Liquidity Reserve (SLR);
 Withdrawal of incentives given to any sectors.
While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and
uncertainties that could cause actual results to differ materially. Since there are uncertainties about the occurrence of the future
events, those should be treated from that viewpoint in decision making by the users of the Annual Report.

CHAIRMAN’S
MESSAGE

Respected Shareholders, the very beginning of the year. Coupled with, particularly
food and energy crisis, these headwinds weighed on growth
Assalamu Alaikum Wa Rahmatullah and dimmed all theforecasts.
It is a great privilege for me to present the Bank’s Annual As IMF reported, global growth of GDP witnessed slow trend.
Report 2022 at a timewhen we are getting ready to celebrate It declined from 6.0 percent in 2021 to 3.2 percent in 2022 and
the 40th birthday of IBBL on 30th March,2023. The Bank has heading to 2.7 percent in 2023.The World Bank estimated that
glorified itself with manyhistoric milestone achievements and the growth of global economy to be slow from 5.7% in 2021
success stories since its establishment. to 2.9% in 2022.This growth profile to be the weakest since
The bank started its challenging journey with the hope and 2001 except for the global financial depression (2007) and the
aspiration of mass people for establishing a Shari’ah based acute phase of COVID-19 pandemic.The global economy is
bank in the country in 1983. Throughout the journey IBBLhad forecasted to grow by 1.7 percent in 2023 and 2.7 percent in
to face multifarious challenges. At 40 years’ maturity IBBL is 2024, the slowest in nearly three decades.Large economies
now the top performer in the banking industry having a strong experienced significant slowdown in the outgoing year. GDP
cliental base, notable business portfolio, expanded banking contraction in the US & Euro Zone in the first half of 2022
network, tech-based modern banking products and solutions, and prolonged COVID-19 were also responsible for crisis in
sustainable growth in operating results, andcontributions economic sector. Consequently, about a third of the world
to the economy. TherebyIBBL has turned out to be one of economy has faced negative growth in the two consecutive
the most significant, strategic and systemically important quarters.
banks in the country. At this fortunate moment, we sincerely IMF opines that global inflation will rise from 4.7 percent
pay our deep homage to Bangabandhu Sheikh Mujibur in 2021 to 8.8 percent in 2022 but supposed to decline to
Rahman, the Founder-Father of the Nation under whose 6.5 percent in 2023 and further to 4.1 percent by 2024. The
leadership and guidance Bangladesh signed the IDB Charter growth of investment in emerging markets and developing
in 1974 and paved the way for establishment of Islami Bank economies (EMDEs) is also predicted to remain below the
Bangladesh Ltd. as the first Shariah based Bank in South average rate observed over the past two decades. Small nations
East Asia. We express our earnest gratitude to the Ho’nble are especially vulnerable to setbacks due to their reliance on
Prime Minister of the People’s Republic of Bangladesh for external trade and financing, limited economic diversification,
her dynamic and visionary leadership and contribution to high debt levels, and susceptibility to natural disasters.
Bangladeshinovercoming the far reaching catastrophic effects
of COVID-19 pandemic as well as graduating to a developing The world has experienced a global energy crisis of
country as a role model of development and growth. Wealso unprecedented depth and complexity. Europe is at the Centre
recall those people and organizations who contributed in the of this crisis, but it is having major implications for markets,
establishment of our beloved unique country. policies and economies worldwide. As so often is the case,
the poorest and most vulnerable countries are likely to suffer
At the outset of 2022, we were hopeful of coming out of most. The strains did not begin with Russia’s invasion of
the gruesome impact of the Corona Pandemic after gradual Ukraine, but they have been sharply exacerbated by it.
recovery,but unfortunately the country’s economy fell into
some unprecedented pressures in terms of elevating cost-push Conflict, economic shocks, climate extremes and soaring
inflation, appreciation in exchange rate, crisis in greenback prices in the global commodity market were combining to
market, reduction in country’s resource mobilization for create a food crisis of unprecedented proportions. As many
increasing gap in demand and supply, disruptionsin supply as 828 million people were unsure of where their next meal
chain management and consequence of Russia-Ukraine war. is coming from. People around the worldalso faced rising
As a consequence,economic environment of the country hunger.
became gloomy and the economic- growth prospect narrowed
In the prevailing delicate economic scenario, increase in
down. Despite we have had a soft landing at the end of 2022
production, relaxing supply constraints, ensuring price stability
and thanks to the prudent and time befitting policy support by
and lowering the cost of living through global cooperation
the government and our central banks.
among the prominent countries and policy co-operation may
Global Economy help the global economy getrid of the crisis. But, economists
are foreseeing a reversal of trade liberalization gradually
The year under report (Year 2022) was a turbulent one for as the geopolitical fault lines are evidently increasing and
the global economy. Tightening financial condition, cost leading to de-globalization.
of living crisis, rapid and persistent inflation, disruption in
supply chain management, and Russia’s invasion of Ukraine National Economy
have caused a broad based slowdown in the global economy
Bangladesh economy was growing consistently high over
thoughprospects of better-than-expected growth appeared at
a decade crossing 7.0 percent milestone in FY 2015-16 and

8.0 percent milestone in 2018-19, However, the COVID-19 FY 2021-22 (July-March), which is 43.84 percent higher than
pandemic reduced the growth rate to 3.45 percent in 2019-2020 the import payments of the same period of the preceding year.
and recorded 6.94 percent growth in 2020-2021(Ref.).The
In response to minimizing the effects of the global COVID19,
World Bank forecasts country’s GDP growth to be 5.2% in
International conflict, extreme floods, and natural disasters,
fiscal 2022-23 down from 7.2% growth in the 2021-2022.
GOB has adopted short, medium, and long-term action plans
Bangladesh Government revised down the growth forecast
to maintain food security for the people of the country by
from 7.2% to 6.5% in line with the projection made by ADB
continuing the expansion in agricultural productivity. The
and IMF. AnalyticallyYear 2022 was very much critical to
target of food production was 465.83 lakh metric tons (MT)
Bangladesh economy. The prospective economic- growth
in 2022, which was 466.35 lakh MT in 2021.
pegged down due to declining remittance inflow and Foreign
Exchange Reserve, exchange rate appreciation, increase To overcome the shocks of national economy as well as to
of global commodity price, persistently high inflation, revitalize the same, GOB has provided different supports
tightening monetary policy, financial austerity, poor revenue under incentives packages to its industry and service sectors.
collection, limited domestic resource mobilization and so The government is committed to ensuring fulfillment of
on. All these have deepened the pressure on the country’s the basic needs of the people as well as human resource
macroeconomics in second half of 2022. development through economic reform focusing on life and
livelihoods to combat the long-term effects of projected
Despite the dominating troubles in the economic
economic recession.
activities,Canadian agency Visual Capitalist declared
Bangladeshhaving a GDP of $465 billion, as the 35th Like other developing countries, Bangladesh having a
largest economy of the world in 2022.The country’s per large and rich bio-diversity has been combating against
capita income reached $2,824 from $2554 due to the rise environmental degradation that is considered to be a crucial
in economic activities. The pace of growth of Bangladesh’s challenge for the country. Efforts are continuing to integrate
economy rose to 7.25% in 2021-22 fiscal year from 6.94% of environmental issues with mainstream development policies
previous year successfully managing COVID-19 pandemic to ensure economic growth and environmental sustainability.
as well as returning to high growth trajectory. The year was Furthermore, a detailed work plan has been formulated with
also remarkable in the history of Bangladesh for the country a view to achieving environmental targets of Sustainable
rejoiced with pride forlong cherished andself-funded Padma Development Goals (SDG’s).
Bridge and Country’s first Metro Railin operation with
projection to increasing our GDP growth. Global Banking
Per capita GDP and per capita national income stood Since the global financial crisis of 2007, there has been a
respectively at US$ 2,723 and US$ 2,824 in 2022 compared significant transformation in the banking sector, as bankers
to US$ 2,462 and US$ 2,591 respectively in 2021. The have recognized the value of maintaining capital levels
consumption increased to 78.44 percent of GDP in 2022 from surpassing regulatory requirements. This has led to an
74.66 percent in 2021. The gross investment stood at 31.68 impressive performance by banks regarding capital adequacy
percent of GDP in 2022, where public investment and private and is the principal reason why the banking system has
investment accounted for 7.62 percent and 24.06 percent of remained resilient even inchallenging times. The banking
GDP respectively. industry’s global Common Equity Tier I ratio is expected
to significantly exceed the regulatory threshold of 4.5%.
The revised revenue mobilization target was set at Tk. 3.89
However, banks in emerging economies encountered
trillion in 2022, which is 9.78 percent of the GDP. Of this,
significant challenges, as Banks holding one-third of banking
revenue receipt from NBR sources was marked at Tk. 3,30,000
assets lack the necessary minimum capital requirements.
crore (8.30% of GDP), tax revenue from non-NBR sources
at Tk. 16,000 crore (0.40% of GDP) and non-tax revenue at If the situation deteriorates further, the global economic
Tk. 43,000 crore (1.10% of GDP). According to the revised growth will be significantly impacted, as analyzed by the
budget, the total expenditure target for FY 2021-22 has been IMF. Global Banks rebounded from COVID-19 with strong
set at Tk. 5,93,500 crore (14.93% of GDP),The actual budget revenue growth, but the scenario has changed dramatically
deficit for FY 2019-20 and 2020-2021 stood at 4.7 percent due to some geopolitical shocks and lingering effects of
and 4.3 percent of GDP respectively.The country’s external the pandemic. Thereby Growth is projected to decline from
debt outstanding at the end of February 2022 was US$ 55,826 the baseline estimate of 3.2% and fall below negative 3%
million (12.23 percent of GDP). Bangladesh’s export growth in 2023 before rebounding to approximately 3% in 2024.
remains on a positive trend. During July-April of 2022, total Hopefully, the GSFR report suggests that the world’s
export earnings increased by 35.14 percent to US$ 43,344.34 banks are sufficiently prepared to handle the most extreme
million compared to the same period of previous year. The circumstances.
total import payments (c&f) stood at US$ 66,898.70 million in

Banking Sector of Bangladesh 2021 and predicted to reach $3.2 trillion by 2024 and $ 5.44
trillion by 2027 with a prediction of registering growth of
The outgoing year was one of the most challenging years since 10.2% during 2022-2027.Islamic banking is the largest sector
the inception of Banking Services in Bangladesh. It was just in the Islamic finance business, accounting for 69% of the
healing from the trauma of Covid-19 lockdown and ended up industry’s assets or $ 1.99 trillion. Commercial, wholesale,
with new hit called Russian-Ukraine War. The sector faced and other sorts of banks contribute to the sector’s success.
numerous challenges i.e. liquidity stress, capital shortage, Iran and Sudan have hundred percent Islamic banking
deterioration in asset quality, dwindling foreign exchange followed by Saudi Arabia (78 per cent), Brunei (58 percent),
reserve, depreciation of exchange rate and so on. Liquidity in Kuwait (51.90 percent), Malaysia (31.5 percent), Qatar (28.1
the banking sector declined due to rising domestic credit and percent), Djibouti (25.1 percent) and UAE (23.90 percent).
declining deposit trends. Foreign borrowing became costlier
for depreciation of local currency against the green back Bangladesh Islamic Banking
and increasing interest rate in the global market.Country’s Islamic banking in Bangladesh has witnessed an impressive
remittance through the banking channel has declined by $1 growth in recent years on a strong public demand for interest
billion (reached to $21 billion from $22 billion). To make the free financial transactions and on a profit loss sharing (PLS)
foreign exchange market stable, Bangladesh Bank sold about basis. Currently, the market shares in terms of deposit of
USD12.61 billion in 2022 bringing down foreign exchange Islamic banks in Bangladesh accounted for 26 percent&
reserve at USD33.75 billion as on last date of 2022. the ratio stood at 28.50 percent regarding investment in
The year also witnessed controversial environment that the country’s banking sector at the end of fiscal year 2022.
comparatively slowed the deposit trend in banking industry Islamic Financial Services Industry (IFSI) Stability Report
put Bangladesh in the eighth place in top 15 countries having
causing a lack of confidence amongst the depositor.
more than 15% share in Islamic-banking assets in their total
Moreover, High inflation rate and cap on rate of deposit and
domestic money market. Till September 2022, 10 full-fledged
investment has left tiny breathing space for banks.
Islamic banks have been operating with 1605branches in
Default loan, considered to bethe cancer for the Banking banking system. In addition, 23 Islamic banking branches
sector,reached Tk. 1.34 trillion i.e. 9.36% (Sep-2022) of total of 11 conventional commercial banks and 511 Islamic
investment from Tk. 1.1 trillion of one year earlier. banking windows of 13 conventional commercial banks
are also providing Islamic financial services in Bangladesh.
Despite all odds Central Bank adopted some pragmatic However, Bangladesh has more opportunity in Islamic
measures to sustain from worst effects of current crises. It bonds. The country’s first Sukuk (Islamic bond) was issued
adjusted the repo and reverse repo rate twice to address the in 2020. Bangladesh Bank, on behalf of the government, has
market demand of selling of$ 13 billion in open market. issued the first sovereign investment Sukuk to raise Tk 80.00
billion for implementation of the safe water-supply project
Bangladesh as an Asian Tiger (Emerging Economy) has been in the country. The total amount of issued Sukuk reached
going through a fast speed of infrastructural uplift forthe last BDT. 180 billion till the end of 2022. To address the growing
two decades. Being the nerve Centre of national economy demand and comprising issues of shariah based Banking
Banks have been playing vital role in the blood line of in the country, Central Bank issued and circulated updated
reformation, performed extremely well in time of stress as a policies and guidelines in line with the Risk Management
trusted friend of all time. guidelines and other Banking practices.
Global Islamic finance Shari’ah Compliance
Global Islamic finance industry has expanded 10%-12% IBBL is always striving to achieve excellence in Shari’ah
in 2021-2022. The expansion of Islamic banking assets compliance as complying with the principles of Shari’ah as
appeared in some Gulf Cooperation Council (GCC) member enshrined in the Holy Quran and the Sunnah of the Prophet
countries, Malaysia, and Turkey and sukuk issuances. (peace be upon him) is the essence and most important
Islamic finance started to expand rapidly since 2020 with cause of IBBL.Our intrinsic culture of shariah compliance
total assets increasing at 10.6% despite the double shock is embedded in the value system of the bank.A sound and
from the COVID-19 pandemic and drop of oil price as well. effective Shari’ah compliance framework is critically
Because of strong investments in halal sectors, infrastructure, important for the general public in gaining confidence about
and Sukuk bonds, the worldwide Islamic financial business is Shari’ah conformity of the banking products and services.
quickly expanding, particularly through electronic modes in Endeavors continue to ensure that the operations of IBBL
all products and services. Global Islamic Finance assets also remain in conformity with the rules and principles of
surged by double digits’ year to year in 2019 across its three Shari’ah. In 2022, IBBL significantly improved its Sariah
primary areas (banking, capital markets, and takaful).The compliance. The percent of Sariah violation was 0.49% in
Global Islamic Finance Market was worth $ 2.2 trillion in 2022 as against of 0.54% in 2021.

Risk Management In the country perspective, IBBL held the prime position in
2022 in number of VISA branded Debit Card, Prepaid Card,
At present banks are exposed to severe competition and often CRM, Internet Banking customer & transactions including
are to encounter various types of financial and non-financial iBanking & Cellfin. The performance is noteworthy and
risks. Profits are the reward for successful risk taking in going up steadily. Continued growth of digital payments,
business. On the other hand, excessive and poorly managed expansion of open banking, frequent use of advanced
risk can lead to losses and thus endanger the safety of a Artificial Intelligence (AI) and machine learning applications,
bank’s depositors. Accordingly, IBBL works to mitigate the focusing on cyber security, innovation& efficiency, reduced
risk profile of the bank. fraud & risk, enhanced customer experience, as well as more
The objective of risk management in IBBL is not to prohibit emphasis on Environmental, Social& Governance (ESG) and
or prevent risk taking activity, rather to ensure that the risks sustainable finance have been the major propelling force for
are consciously taken with full knowledge, clear purpose the continuous journey of digitalization of the Bank.
and practice of Risk Management culture and understanding
so that it can be measured and managed properly. The To penetrate into the competitive market by introducing
objective of the Bank is to maximize shareholder’s wealth new products and services with Unique Selling Proposition
by increasing bank business activities. As part of our global (USP), IBBL is going to launch some more innovative and
compliance initiatives, we have undergone a rigorous modern products and services in days to come.
Anti-Money Laundering (AML) remedial process through
appointing Kroll, a globally reputed organization for AML
Financial Inclusion
and Risk Management Consultancy.
Financial inclusion has been identified by the United Nations
Customers Focus Sustainable Development Goals (SDGs) as a key driver of
sustainable economic growth. It ensures access to affordable
Since inception upon rendering quality service, maintaining financial products and services, such as transactions,
the customer at the central focus has been the key operational payments, savings, credit, and insurance, for individuals and
strategy of IBBL. This has resulted in building the trust and organizations. The World Bank confirms the importance
confidence of millions of customers throughout the long of financial inclusion and reports that in Bangladesh, 53.0
journey of four decades.By now, IBBL has become the percent of individuals are included in the formal financial
“Bank of Crore Clients” irrespective of cast, creed, religion, infrastructure, with around 20.0 percent having bank
gender and political standing. It has also taken initiatives to accounts or credit cards. Most individuals rely on mobile
bring the unbanked population and poorest segments under financial services as MFS operators daily transact an average
the Banking Umbrella through its expanded networks of of TK. 3,500 crore.
branches, sub-brunches, agent outlets, ATM-CRM booths
and many other digital products and solutions.Customer base Bangladesh has made significant progress in achieving
of IBBL was close to 20 million in 2022. With the support financial inclusion, starting with microcredit and expanding
and confidence of the customers, the bank has touched the to cover access, usage, and quality of financial services
threshold of 1.41 trillion deposit,1.46 trillion investments, everywhere. Mobile financial transactions are now a
and 1.57 trillion international business by dint of which commonplace here aspeople have been accustomed to digital
IBBL has assumed the role of the largest commercial bank financial services.
of the country.
Digital Services Operation and Coverage Difficulties in accessing financial services in remote or
underdeveloped areas, demand-induced impediments such
In the several outgoing years, Bangladesh has experienced a as low incomes and lack of financial awareness, and supply-
rapid growth of digitalization. Digitalization has changed the led bottlenecks such as inconvenient delivery mechanisms,
shape of the country’s socio-economic parameters with tech- cumbersome documentation requirements, and unfriendly
savvy population, mobile connectivity and internet facility. It staff attitudes have contributed to financial exclusion in
has also changed customers’ behavior from physical to digital. Bangladesh. To address these challenges, IBBL developed
So, the theme for the Year 2022 of the bank was determined as its flagship program Rural Development Scheme (RDS)
“Sustainable growth through Fin-tech Solutions” for bringing and Urban Poor Development Scheme wherein Shari’ah
the mass people under the banking umbrella through greater compliance in banking and micro finance have been the key
financial intermediation and sustainable banking towards factors for the Bank’s grand success. Besides, the bank has
ensuring country’s economic growth. The theme encouraged also been providing mobile financial services through mCash
the bank to come close to its customers through its digital in receiving educational fees/tuition, payment of corporate
service operations and coverage. salary and so on.

Milestones we have covered Ethical Finance and Sustainability
Ethical investment refers to sustainable finance that promotes
Sustainable finance is what we aspire to. In order to achieve
efficient resource allocation, environment friendly and low
this, we pay our undivided attention to efficient cost
cost incurring business activities. In accordance with the
management, consistent productivity improvements through
objectives of the SDGs and the bank’s commitment to social
seamless coordination across businesses and support units.
welfare, IBBL operates as a socially responsible bank that has
We also focus highly onbroadening our banking horizon to
established a strong reputation in the banking industry and
deliver sustaining performance in the constantly changing
corporate world. To mitigate the impact of climate change
business environment. The year 2022 was not exception
and maintain ecological balance, the bank has been putting a
to that. As with the previous decades, we continued the
greater emphasis on green and sustainable finance, which has
momentum to sustain the growth. In the reporting year, bank
placed it among the top 10 banks in Bangladesh as rated by
reached to new heights in most of the key business indicators.
the Bangladesh bank in terms of sustainability. The bank is
In deposit mobilization, the bank crossed Tk. 1.41 trillion,
obtaining green transformation funding from the central bank.
marking a new milestone and this has registered a growth
IBBL aims to continue its sustainable finance to promote
of 2.06% over the previous year. Investment peaked to Tk.
green and stable growth, resilience in climate by channeling
1.46 trillion, an all-time high, recording 22.68% growth. The
its investment for the transition into climate-adapting, climate
Return on Equity (ROE) and Return on Asset (ROA) recorded
–resilient, and resource –efficient green economy.
at 8.93% and 0.34% respectively and the Earning per Share
(EPS) stood at Taka 3.68. Total assets of the Bank rose to Corporate Social Responsibility:
Tk 1.84 trillion marking a growth of 12.35% higher than the
previous year. In 2022, the export and import business of As a corporate citizen,IBBL has been continuing its
IBBL was Tk. 369.64 and 754.05 billion respectively. The CSR programs for the betterment of under privileged
Bank’s foreign remittance receipt was Tk. 446.97 billion in people, improvement of education, culture, sports as well
the year under report. About 22.92% of the country’s total as development of health & Medicare sectors. Besides,
inward foreign remittance is mobilized by IBBL. All these IBBL is contributing to humanitarian assistance, relief &
show the testimony of stakeholders’ faith on IBBLas well as rehabilitation activities specially distributing winter blankets,
the commitment of IBBL team in the pursuit of their work. cloths to the cold-hit areas of the country. The amount spent
for CSR initiatives during 2022 reached Taka 3,274 million
a significant rise of 110.57 percent compared to the 2021
Microfinance: A Tool of Poverty Alleviation allocation.
Since inception, IBBL has been working for every group of
people irrespective of caste, religion or gender. To eradicate
Governance: IBBL Perspective
rural poverty through employment generation, agriculture Fair, good and effective corporate governance in accordance
and setting up agro-based industries, IBBL introduced ‘Rural with high international standards is of paramount importance
Development Scheme’ (RDS) in 1995. This is a unique to IBBL. IBBL has been consistently making efforts in
rural initiative that includes some basic human development pursuit of best governance practices to ensure optimum
skills such as skill enhancement in cottage industries, returns and satisfaction of stakeholders. Our system of
home food production, vocational aptitude, training corporate governance provides the basis for the responsible
facilities,Depositformation, various income generating management, transparency of processes and compliance to
activities, micro-investment and awareness on social security regulatory bodies with a focus on sustainable value creation
etc. 30,961 villages were covered by IBBL-RDS as of and social development. We have adistinct demarcation of
December, 2022. The bank is equally concerned for economic responsibilities between the Board and the management
uplift of the urban poor. In 2012, IBBL introduced ‘Urban Poor in IBBL. Here the Board comprises of members who are
Development Scheme’ (UPDS) for the urban slum-dwellers. prominent in their own fields and efficient in banking and
The number of RDS and UPDS members in IBBL has been finance. The Board set policies, guidelines and monitor
growing at a faster rate since their inception. In 2022, total performance and have assigned full freedom to the
RDS and UPDS members increased to 1.60 million and this is management to run the day-to-day affairs of the bank.
unique in the context of commercial banking in Bangladesh.
The outstanding microfinance investment of RDS and UPDS Awards: Acknowledging our endeavor
reached at Tk. 55,881 million in 2022 and this is 22 percent IBBL has been honored with recognition and awards by both
higher compared to the previous year. The rate of recovery national and international organizations in recognition of its
is 99.03 percent which express the beauty of micro Islamic exceptional performance and leadership with its welfare-
finance. This financeis proved as the effective tool to meet the oriented mission of serving the public and promoting socio-
goals of SDG and financial inclusion. economic growth of the country. Some of them are as follows:

IBBL was selected by “the Banker”, a UK-based financial transparency and adhering to Shariah standards. Let me now
intelligence magazine, as one of the ‘Top 1000 Global take the liberty to pay tribute to my fellow Board Members
Banks’ and the bank’s ranking has improved from 931st in for their sagacious counsel and guidance that helped our
2021 to 882nd in 2022. The Bank also received “Best Bank in executive management secure the bank’s progress.
Bangladesh Award 2022” by South Asian Partnership Summit,
My heartfelt thanks go to our shareholders as well as all
“The Strongest Bank by Balance Sheet in Bangladesh 2022”
stakeholders for their trust and confidence that has allowed
by The Asian Banker, “ICMAB Best Corporate Award 2021”
us to stand strongand steadfastinall the adverse situation. We
by ICMAB, “Highest Taxpayer Recognition” in the Banking
are grateful to our customers and clients, who are the prime
sector in the consecutive years from 2017-2018 to 2021-2022
movers for our success and glory. Above all, my hanks are
by NBR, “Bangladesh Bank Remittance Award 2022” and
due to the efficient IBBLTeam who have worked tirelessly to
awarded every year since 2017 by Bangladesh Bank, “The
bring about success to the bank in 2022. I am thankful to the
Top Performing Banking Award in Sustainability Rating” by media for their contribution throughout the year. May Allah
BIBM in 2022,declared as ‘AAA’ Rated Private Bank since bestow upon us prosperity in this world and eternal salvation
2018. in the next.
In Islamic Banking category, the Bank received “The
Strongest Islamic Bank by Balance Sheet in Bangladesh
2022” by The Asian Banker, “The Strongest Islamic Retail
Bank in South Asia and in Bangladesh 2022” by Cambridge
IFA, UK, “Award for the Most Outstanding Islamic Bank
2021” by Global Islamic Finance Award (GIFA), “Excellence
(Prof. Mohammad Nazmul Hassan, PhD)
in Retail Financial Services Awards 2021” in the category of
Chairman
Best Retail Islamic Bank in Bangladesh by The Asian Banker.
Looking Forward
In 2023, IBBL will touch a significant milestone as it is going
to celebrate its 40th birth anniversary. On this auspicious
occasion our aim is to put an emphasis on optimizing resource
mobilization, building relationship for mass acceptance,
rationalization of asset portfolio for financial stability,
capacity building for sustainable banking, escalating the
trust and confidenceof the people, sticking to the welfare
mission of the Bank, rebranding IBBL for upholding image
and identity, sustained growth through balanced allocation of
resources in different segments of business and development
and upgradation of fintech product and services coping with
the latest technological innovations.
Our Gratitude
We would like to record our deep appreciation to all who have
assisted us on our decades-long journey. We alsotothankto
the Government of the Peoples Republic of Bangladesh,
led by Hon’ble Prime Minister Sheikh Hasina, for restoring
stability in the economy and presenting Bangladesh as a role
model of development and growth all around the world.We
are grateful to the Ministry of Finance, National Board of
Revenue, Bangladesh Securities and Exchange Commission
and other regulators who have always extended kind
support to IBBL throughout the journey.We are especially
thankful to Bangladesh Bank for their continuous policy
support and prudent guidance in overcoming the extremely
uncertainnational and global challenges. Our gratitude to the
Shariah Supervisory Committee and external auditors for their
continuous support, efforts and focusin respect of ensuring

MANAGING DIRECTOR’S
REVIEW

Dear shareholders and stakeholders, and then more rapidly as the year progressed and
inflationary pressures built. Fiscal support continued in
May the peace, mercy and blessings of Allah be with you. the euro area as governments sought to shield households
and businesses from elevated energy costs, but provided
Alhamdulillah, it gives me immense pleasure to present to
less of a tailwind in the United States as COVID-19
you the Annual Report of Islami Bank Bangladesh Limited
support measures were unwound.
(IBBL) for the year 2022. This is also the year, when IBBL
steps in 40 years of successful journey since its establishment
Global macro-economic outlook in 2023
as first Shariah-based bank in Bangladesh in 1983. During this
time, IBBL has grown from its humble beginning to its current  Global economic growth is expected to continue at a
position of being one of the leading private commercial banks moderate pace, supported by ongoing expansionary
in Bangladesh. By the grace of Allah (SWT), this has been monetary policies and fiscal stimulus measures in many
an exciting journey of success and fulfillment. The success of countries. The recovery from the pandemic-induced
IBBL is a testament to the blessings of Allah (SWT) and the recession is likely to be uneven across regions, with
dedication, hard work, guidance and suport of our Board of emerging markets and developing economies facing
Directors, stakeholders and mass people. more challenges due to the slower pace of vaccination
and limited access to financing.
I would like to present a review on key performance and
achievements of IBBL for the year 2022 by expressing my  Inflationary pressures are expected to remain elevated
sincere gratitude to all of you for continued loyalty and trust in many countries due to a combination of supply chain
to IBBL in 2022, which was undoubtedly one of the most disruptions, labor shortages, and higher commodity
challenging years in the recent history. prices. Central banks are likely to continue monitoring
the situation closely and may begin to gradually tighten
Global macro-economic trends in 2022
monetary policy if inflation persists at elevated levels.
 Global GDP growth slowed sharply in 2022 to 3.4%,
 Trade tensions between major economies such as the
following the 6.0% expansion in 2021, as inflation soared
US and China are expected to continue, but the overall
and central banks around the globe were forced to tighten
global trade volume is likely to recover as vaccination
policy aggressively.
rates increase and travel restrictions ease. However,
 Economic developments in the Middle East, North Africa, geopolitical risks such as the ongoing conflict in the
Afghanistan, and Pakistan (MENAP) was the best- Middle East and tensions in the Korean Peninsula could
performing region, recording growth of 6.2%, supported pose risks to the outlook.
by elevated commodity prices; Asia recorded growth of
 The adoption of new technologies such as artificial
4.2%, down from 7.1% in 2021, primarily driven by the
intelligence, blockchain, and 5G is expected to accelerate
slowdown in China, with growth falling to 3.0% in 2022
in many industries, contributing to productivity gains and
from 8.4% in 2021.
enhancing the quality of life for many people. However,
 The United States recorded annual growth of 2.1% on the concerns about data privacy and security are likely to
back of resilient domestic demand, while the UK likely remain a key challenge for policymakers and businesses.
grew by 4.0%.
 The urgency to address climate change is likely to increase,
 The euro-area economy likely grew by 3.5% in 2022 with many countries committing to ambitious targets to
following 5.3% growth in 2021; while the recovery was reduce greenhouse gas emissions. This is likely to result
strong in H1 due to COVID-19 reopening effects, H2 was in increased investment in renewable energy, carbon
held back by rising energy costs related to the Russia- capture, and storage technologies, and a shift towards
Ukraine conflict. more sustainable production and consumption patterns.
 In most majors, labor markets showed signs of further Overall, the global macro outlook for 2023 is expected to
tightening, despite slowing growth. be shaped by a complex mix of economic, political, and
environmental factors, with both opportunities and challenges
 Central banks began to unwind support, at first gradually for businesses and policymakers.

A look back on Bangladesh macro-economic of roads, bridges, and ports. This is expected to improve
trends in 2022 connectivity and facilitate trade and investment in the
country. The launches of the Bangabandhu satellite,
Bangladesh has made a strong economic recovery from the Padma Bridge, Merto Rail, Rooppur Nuclear Power
COVID-19 pandemic, but growth faces new headwinds Plant are also expected to contribute country’s economy
as global commodity prices increase amid the uncertainty by 1-2% GDP.
created by the Ukraine war started in February. The country
has some remarkable achievements despite the adversities it  Social Development: Bangladesh has made significant
faced mostly stemming from the global issues, which made progress in reducing poverty and improving access to
2022 an eventful year. A few events that took place in the just basic services such as healthcare and education. However,
left year are highlighted here: the country still faces challenges in addressing income
inequality, improving labor rights, and reducing gender-
 Economic Growth: Bangladesh has been one of the fastest- based violence and discrimination. The government is
growing economies in the world over the past decade and implementing various social safety net programs and
the economy witnessed impressive growth performances initiatives to address these issues.
during the previous two consecutive fiscal years, reflected
by 6.94 % and 7.25 % real GDP growth rates in FY21 The 2023 macroeconomic risk map
and FY22 respectively. The Bangladesh economy has
An overview of some macroeconomic risks that Bangladesh
shown strong resilience against the Covid-19 shocks and
may face in 2023 based on current trends and past events.
rebounded sharply, supported by higher growth in industrial
and service sectors resulting from improved Covid-19  Inflation: Bangladesh has experienced high inflation in
situation and robust internal and external demand. recent years, driven by rising food and energy prices.
In 2023, inflation could remain a significant risk,
 Inflation: Point to point inflation, which was below 6.5%
particularly if global commodity prices continue to rise.
until April’2022, crossed the 7% mark in May driven
by increased commodity prices globally after Russia’s  Exchange rate volatility: Bangladesh’s currency, the
invasion of Ukraine. The spiral continued and inflation BDT, has experienced volatility in recent years, with
touched a 10 year high at 9.52% in August. The rate fluctuations against the US dollar. If the taka continues
of inflation eased in the last three months of the year. to depreciate, it could lead to higher import costs, putting
In December 2022 inflation was 8.71%, which eroded pressure on inflation.
purchasing capacity of the large section of the population
particularly the low and fixed income families.  Natural disasters: Bangladesh is prone to natural disasters
such as floods and cyclones, which can cause significant
 Trade: Bangladesh’s export-oriented economy has been damage to infrastructure and disrupt supply chains. If
hit hard by the COVID-19 pandemic, with declining a major disaster were to occur in 2023, it could have a
demand from major export destinations such as the US significant impact on the economy.
and EU. However, the government has taken steps to
diversify its export markets and increase value addition in Global Banking trends in 2023
key sectors such as textiles and pharmaceuticals. Overall,
Overall, 2023 is likely to be a year of continued evolution and
10.58% growth in exports met the strategic target set for
innovation for the global banking industry, as banks adapt to
the period, and negative import growth of 2.20% during
changing customer demands, regulatory requirements, and
July-December 2022 has been the outcome of BB’s
technological advancements. Therefore, based on current
recent policy initiatives - such as promoting import-
trends and developments, we can expect the followings in
substituting economic activities and dissuading imports
world banking in 2023:
of luxury goods, fruits, non-cereal foods, canned and
processed foods, etc., on top of depreciation pressures of  Continued Emphasis on Digital Transformation:
local currency.
Banks will continue to invest in digital infrastructure and
 Infrastructure: The government has been investing heavily platforms to enhance customer experience and increase
in infrastructure development, including the construction operational efficiency. We can expect the integration of

artificial intelligence (AI) and machine learning (ML) to to implement the lion’s share of these stimulus packages
improve banking processes such as fraud detection, customer through a series of complementary and supportive policy
service, and risk management. Moreover, the adoption of measures by injecting working capital loans and extending
blockchain technology may become more prevalent as it various refinance facilities for agriculture, CMSMEs, large
provides an opportunity for banks to streamline operations industries, export-oriented industries, and the service sector.
and reduce costs.
The liquidity situation of the banking system exhibits
 Increased Focus on ESG: a declining trend during the first half of FY23 for several
reasons. The sale of foreign currencies to meet higher import
Sustainability and ESG (Environmental, Social, and
demand than those of export earnings and inward remittances
Governance) investing will continue to gain prominence
has resulted in a large volume of local currency withdrawal,
in 2023, and we can expect banks to take a more active
significantly contributing to the declining trend of excess
role in promoting sustainable practices and investing in
cash reserves / liquidity. BB has taken various initiatives,
green technologies. This trend will be driven by regulatory
including continuous liquidity supports to the conventional
pressures, consumer demands, and the need to address
banks through repo and assured liquidity support facility and
climate change.
the introduction of an Islamic bank liquidity facility (IBLF).
 Rising Competition from Non-Traditional Players:
Despite the challenges, the banking sector in Bangladesh
Non-traditional players such as fintech companies and big has shown resilience and continued growth. The sector
tech firms are disrupting the traditional banking industry. has played a vital role in facilitating trade and commerce,
Banks will need to compete with these players by offering promoting financial inclusion, and supporting economic
innovative products and services, providing a seamless development in the country. With continued government
customer experience, and adopting new technologies. support and a focus on digital transformation and innovation,
the banking sector in Bangladesh is poised for further growth
 Stricter Regulatory Framework:
in the coming years.
Banks may face increased scrutiny and regulation, which
could impact their operations and profitability. Governments Shariah Banking in Bangladesh
and regulatory bodies may focus on issues such as financial
stability, consumer protection, and cyber security, leading to Shariah banking has gained significant popularity in
more stringent regulations for the banking industry. Bangladesh. As of 2022, there are ten (10) full-fledged
Islamic banks and 24 conventional banks that have Islamic
 Increased Collaboration and Partnerships: banking windows & Branches in the country. One of the
We may see more collaboration and partnerships between significant advantages of Islamic banking in Bangladesh is
traditional banks and non-traditional players to offer that it provides an alternative for people who do not want to
innovative products and services, enhance customer deal with interest-based transactions. The growth of Islamic
experience, and increase efficiency. banking is not merely driven by religious emotions but for
economic beauty also. Islamic banks also promote financial
Banking Sector: Bangladesh Context inclusion by providing services to underserved populations
who may not have access to traditional banking services.
The banking sector in Bangladesh faces several challenges,
including limited access to financial services, a high level The growth of Shariah banking in Bangladesh has been
of non-performing investment (NPIs), liquidity stress and significant, with the sector accounting for around 30% of the
weak risk management practices. However, the government total banking industry’s assets in the country. The government
and the central bank have taken several initiatives to address and the central bank have taken several initiatives to promote
these challenges and promote the growth of the sector. the growth of Shariah banking. Overall, Shariah banking has
The Government declared 28 stimulus packages worth around become an integral part of the banking sector in Bangladesh
Tk.1,92,000 crore, approximately 5.43% of FY21’s NGDP, and is expected to continue to grow in the coming years,
for mitigating the adversities of the outbreak of Covid-19 on driven by the increasing demand for Shariah-compliant
Bangladesh economy. Bangladesh Bank has been assigned financial products and services.

IBBL: A journey towards excellence of ADC business & improvement of deposit mix and the
ratio of cost free deposit stood 11.50% which was 9.70%
We started with a simple yet ambitious Vision “to achieve in the previous year. In addition, remarkable recovery from
superior financial performance, be considered a leading Islami written-off investment of Tk.244.77 million in 2022 which
Bank by reputation and performance...” and with the mission was Tk.93.36 million in 2021 and effective & efficient fund
“to establish Islamic Banking through the introduction of a & liquidity management were the major contributing factors
welfare oriented banking system and also ensure equity and of strong profitability.
justice in the field of all economic activities”. Alhamdulillah,
with the passage of time, we stand proud amongst the largest, The Bank could also improve its ROA to 0.34% and ROE
the most profitable, the most innovative and the highest rated to 8.93% which were 0.30% & 7.19% respectively in the
banks in Bangladesh. Our journey hasn’t been easy, but it has previous year. The bank was also able to restrict investment
been filled with determination, perseverance, and unwavering classification to 3.70% in 2022.
faith and it is our values and principles that have been the
Total customer deposit of IBBL stood at Tk.1,410,445
guiding force throughout.
million in 2022 registering a moderate growth of 2.06% and
We have always been committed to offering Shariah- on the other hand, General investment stood at Tk.1,326,644
compliant banking services and Alhamdulillah; we have been million with a growth of 16.61%.
successful in doing so. We have shown that it is possible to
In 2022, total assets of the Bank rose to Tk.1,838.08 billion
do banking and business without compromising on our faith
marking a growth of 12.35% over previous year and export
or principles.
& import business of bank was Tk. Tk.369.64 billion and
We believe that our corporate culture is our greatest Tk.754.04 billion respectively as well as foreign remittance
asset, and our commitment to our Core Values, Shariah- receipt was Tk.446.97 billion with 22.92% of the country’s
compliance, Integrity and Service Excellence has helped us total inward foreign remittance.
work as a focused team towards common goals. Moreover,
Strengthening Capital Base
the team’s emphases on humbleness, pragmatism, hard work
and diligence have played a crucial role in our success. For managing the overall risk exposure of the Bank, our
primary focus has always been to strengthen our risk
Progress on our strategic priorities
management policy with a strong internal control system.
In 2022, we had set the theme “Sustainable Growth through IBBL ended the year keeping the capital base maintaining
FinTech Solutions” and devised the five strategic focuses Capital to Risk Weighted Ratio (CRAR) of 12.54% against
with some priority area; Sustainable Business Relationship, the minimum BASEL III roadmap requirements of 12.50%.
Financial Inclusion through Fintech Solutions, Happy To support the business growth and ensure compliance with
Corporate Environment, Financial Excellence & Upholding the Basel III capital accord in line with Bangladesh Bank
Ethical & Moral Values. Alhamdulilah, over the year, IBBL Roadmap, IBBL has also taken decision for issuance of
continued to make good progress executing its strategic focuses Mudaraba Subordinated bond for Tk.8,000 million. In this
& priorities and delivered a strong financial performance. regard, we received consent from both Bangladesh Bank and
Bangladesh Securities and Exchange Commission (BSEC).
2022 Financial Performance This capital will be added to bank’s Tier-1 capital base.
If we want to put a title that summarizes what IBBL has Non-Performing Investment (NPI) Management
achieved during the year 2022, then it is considered to be
‘A year of excellence and achievement’. In 2022, our Bank One of the core business priorities of IBBL is to curb non
delivered a solid and an improving financial performance; performing investment by maintaining quality assets. With
our continued aim to ensure quality portfolio growth, we
During the year 2022, the bank generated operating profit managed to contain Non-Performing investment (NPI) to
of Tk.21,247.41 million with a growth of 28.35% and the 3.70% in 2022. IBBL’s investment approval process and
net profit stood at Tk.5,923.44 million, registering 27.68% policy has been framed to unveil and assess the unforeseen
growth. This was mainly supported by non-investment inherent risk so that assets quality does not deteriorate in
income with a growth of 26.93% followed by Investment the long run. Additionally, early warning system has been
income growth 19.06%. This has happened due to expansion

emphasized so that precautionary action can be taken against Under the guidelines of Sustainable Finance Policy of
vulnerable assets. Above all, proper monitoring and strong Bangladesh Bank, IBBL has broadened its sustainable
recovery drive from branches and head office have been banking initiatives in the three major categories, such as
intensified to maintain the quality of the assets of IBBL. Sustainable Finance including Green Finance & Green
Banking; Corporate social responsibility and Financial
Contribution to National Exchequer Inclusion. From very early of the introduction of green
IBBL regularly pays corporate tax on time, sometime even banking in 2009 by the central bank, IBBL started its
before it falls due if demanded by the tax authority. We sustainable banking activities. Over the period, IBBL
also deposit excise duty, withheld tax and VAT to National attained marvelous achievements in this area. IBBL has been
Exchequer on time deducted from customers, employees’ rated and listed in the Top Ten Performing Banks in terms of
salary as well as on bills from third parties including Sustainability Rating by Bangladesh Bank in 2021.
vendors. During the calendar year 2022, we contributed Responsibilities towards the Society
BDT 18,636.60 million to national exchequer as tax, VAT
and excise duty. In 2022, IBBL played a notable role in supporting the society
by taking the following measures through Corporate Social
Building a digital financial ecosystem Responsibility (CSR) activities.
Digital Excellence is at the heart of IBBL and the bank strives  The Bank contributed an amount of Tk.2,463.50 million
to become a digital-first financial institution. IBBL aims to for 72,44,612 beneficiaries under health program;
elevate customer convenience through its digital platforms and
become a data-driven organization by leveraging advanced  We donated Tk.45.00 million to ‘Prodhan Montrir
analytics. The fact that individuals and organizations want Shikka Sohayota Trust Tohbil’ to provide educational
to bank digitally is now an established fact and a bank that opportunities to the poor and meritorious student;
has not focused on digital will find itself at a competitive
 The Bank donated blankets to the Honorable Prime
disadvantage. It is therefore highly satisfying to see the
Minister’s Tran Vander to help the cold stricken people
outcomes of our long-term investment in digital capabilities
of the country;
paying dividends in 2022. Most of our customers today are
comfortable in accessing the bank digitally on their smart  Under humanitarian & disaster relief program, we
phone or laptop either to transfer funds or make purchases or donated to Prime Minister Relief Fund.
view statements. We have established the largest ATM/CRM
network in the country and developed the most robust and Financial inclusion and growth
up to date e-Platform- CellFin. Therefore, we have to ensure
Financial inclusion means that individuals and businesses
optimum security in our banking activities through raising
have access to useful and affordable financial products and
awareness of cybercrime among the customers. For our
services that meet their needs in a responsible and sustainable
bright performance in product innovation and Cards business
way. Towards achievement of sustainable development goal
services, we got several recognitions from International
of the country, IBBL emphasizes on balanced distribution of
payment networks VISA & MasterCard.
its service points at the doorstep of the rural people to bring
Sustainability them into formal banking channel. By now, IBBL has opened
around 2700 Agent outlets throughout the country of which
We recognize that Environmental, social and governance 93% are in rural area as against 85% of the country average.
(ESG) issues play a vital role in the future of businesses and We have also spread-out more than 3000 ATM/CRM and
organizations and that sustainability should be embedded our access point have reached more than 6000 covering the
in our forward thinking and strategic execution. IBBL has whole country.
also pledged to develop an ESG strategy and roadmap that
underscores its commitment towards sustainability. We are We have devised a “Rural Development Scheme (RDS)”
working towards an adequate governance system for the in 1995 with a view to creating employment opportunity
proper implementation of ESG and sustainability matters, for marginalized people and alleviate their poverty through
setting targets, monitoring programmes and reporting on income generation activities. Under RDS project, IBBL has
progress to various stakeholder groups. been implementing integrated programs for the landless poor,

wage laborers and marginal farmers aimed at meeting their H. Widening Mass Acceptance
basic needs and promoting their comprehensive development.  Universality in Operation and Action
RDS project are expanded around 30 thousand villages having
 Partnering with all stakeholders
around 16 lakh members out of which 92% are women.
2. Strategic Focus of IBBL: 2023
Strategic Plan for 2023
1. Priorities of IBBL for the Year 2023:
Retionalization of
A. Rebranding Optimizing Asset Portfolio for
Financial
Resources
Sustainability
 Celebration of 40 Years
Moilization
 Not merely Physical Outlook but in Appearance,

Ethical and
in Mentality and in Action
Moral Standard
 Upholding Our Vision, Philosophy and Values
B. Maximizing Resource Mobilization Building Capacity Building

Relationship for for Sustainable
 Get rid of ‘Out of the box’ Thinking Mass Acceptance Banking
 Proactive Strategy
 Relationship Banking
Awards & Recognitions
C. Rationalizing Investment All the success and accolades that the Bank has achieved
have only been possible by the blessings and rehmat of
 Prioritizing Investment to Essential Commodities
Allah (SWT) and we bow our heads to Him in thankfulness
and Import Substitute Items
and gratefulness for making our meagre efforts bear such
 Increase Domestic Production extraordinary fruits. 2022 was a successful year for us and
 Cautious in New Project Investment except BMRE we received numerous prestigious awards and recognitions
from both local and international bodies. We always believe
 Opportunities for Alternate Export commodities
in abiding by strict and fair governance practice across the
D. Cautious Expansion organization and maintaining a strong ethical discipline in
banking operations which has been validated and applauded
 Balanced
over the years. The local and international acclaims that the
 Consolidated Bank has received are outstanding. Some are as follows;
 Rational 1) The position of IBBL has improved from 931st in 2021
to 882nd in 2022 in the ‘Top 1000 Global Banks’ as
E. Excellence in Customer Service
declared by UK based financial intelligence magazine
 Sustainable Customer Relationship “The Banker”.
 Product Knowledge
2) “Best Bank in Bangladesh Award 2022”in the South
 Develop Mutual Trust and Respect Asian Business Excellence Awards 2022 by South Asian
 Empathetic Partnership Summit.
F. Ensuring Cyber Security 3) “The Strongest Bank by Balance Sheet in Bangladesh

2022” by The Asian Banker.
 Technical Vs. Operational
 Knowledge and Awareness 4) “Highest Taxpayer Recognition” in the Banking sector
in the consecutive years from2017-2018 to 2021-2022 by
G. Ensuring Professionalism with Compliance Culture National Board of Revenue.
 Capacity Building for Leadership
5) “Bangladesh Bank Remittance Award 2022” and awarded
 Develop Emotional Intelligence every year since 2017 by Bangladesh Bank.

6) “The Top Performing Banking Award in Sustainability I would like to take this opportunity to express my gratitude
Rating” by Bangladesh Institute of Bank Management to our shareholders, members of Shariah Board, members of
(BIBM) in 2022. Board of Directors and the entire IBBL team for their hard
work and dedication in making IBBL a leading financial
7) “The Strongest Islamic Retail Bank in South Asia and in institution in the country.
Bangladesh 2022”by Cambridge IFA, UK.
Finally, I would like to thank our customers for their trust
My colleagues are getting it done and confidence in IBBL and their unwavering support to
Our people are our biggest brand. They are not only the the growth and success of IBBL. I believe you will remain
face of IBBL; they also determine bank’s performance. As committed to our success and my team and I look forward to
such, IBBL adopts a holistic approach to ensure the well- adding value to your investment in days come.
being of our employees, looking into their physical, mental
and emotional health. Our successes in 2022 were achieved
by devotion and hard work our employees’ who are always Best wishes,
ready, willing and able to take challenges. We provide
enabling environment for our people to excel and optimize
their true potential. Our talent pool is our greatest asset and
we are committed to investing in the growth and development
of our employees to equip them with the knowledge and tools (Mohammed Monirul Moula)
to provide exceptional service to our customers. We also seek Managing Director & CEO
to help them build challenging and rewarding careers.
Appreciations & Gratitude

Islami Bank Bangladesh Limited is much more than just a
financial institution; Allah (SWT) has helped us become
a force for good, a catalyst for change, and the founder of
Islamic finance sector in Bangladesh. We are grateful for
our past, proud of our present and excited about our future,
Insha’Allah. As our journey continues, we pray that Allah
(SWT) grants us the strength to stay true to our Vision and
Mission and continue to serve the people of Bangladesh with
the finest Shariah-compliant financial services.

CORPORATE
MILESTONE

Corporate Milestones
2004
29.12.2004
JOINING/AGREEMENT WITH CDBL
1983
13.03.1983 Incorporation
27.03.1983 Certificate of Commencement of Business
30.03.1983 Inauguration of 1st Branch
01.05.1983 Formation of Shariah Council
04.07.1983 Formation of Sadakah Tahbil as a CSR Wing 2005
12.08.1983 Formal Inauguration 02.04.2005
IN-HOUSE CORE BANKING SOFTWARE
1985
02.07.1985
LISTING AT DHAKA STOCK EXCHANGE LIMITED
2007
31.12.2007
1ST POSITION OF IBBL IN INWARD
1996
REMITTANCE SINCE
07.03.1996
LISTING AT CHATTOGRAM STOCK
EXCHANGE LIMITED
2009
21.06.2009
OPENING OF 200TH BRANCH
1997
12.06.1997
OPENING OF 100 TH BRANCH
2010
22.03.2010
ISLAMI BANK SECURITIES LIMITED (IBSL)
01.04.2010
ISLAMI BANK CAPITAL MANAGEMENT LIMITED
(IBCML)

02
Corporate Milestones
2011
04.01.2011
LAUNCHING OF OFFSHORE BANKING UNIT
2017
07.01.2011
100% ONLINE BANKING
16.12.2011
15.07.2017
LAUNCHING OF IBANKING
LAUNCHING AGENT BANKING SERVICES
2012
11.10.2012
INTRODUCTION OF IDM
27.12.2012
2018
INAUGURATION OF MCASH SERVICE
27.12.2012
LAUNCHING OF CALL CENTER
31.12.2012 10.05.2018
ENTERED INTO THE WORLD’S TOP 1,000 BANKS LIST SINCE
OPENING OF 100th AGENT BANKING OUTLET
2014
14.04.2014
WITNESSED TK.500,000 MILLION DEPOSIT BASE
27.05.2014
LAUNCHING OF SHARI’AH BASED CREDIT CARD– 2019
ISLAMI BANK KHIDMAH CARD 08.07.2019
OPENING OF 500TH AGENT BANKING OUTLET
08.09.2019
2015
LAUNCHING OF CRM
15.09.2019
OPENING FIRST SUB-BRANCH
18.03.2015 11.11.2019
LAUNCHING OF SHEBA GHAR OPENING OF 350TH BRANCH
31.12.2019
09.09.2015 OPENING OF 1000TH AGENT BANKING OUTLET
OPENING OF 300TH BRANCH 2020-21
30.06.2020
TK. 1 TRILLION DEPOSIT
27.09.2020
2016 OPENING OF 100TH SUB-BRANCH
OPENING OF 1500TH AGENT BANKING OUTLET
30.11.2020
30.03.2016 LAUNCHING OF CELLFIN APP
LAUNCHING ‘IBBL ISMART’ (MOBILE APPS) 13.12.2020
18.10.2016 OPENING OF 2000TH AGENT BANKING OUTLET
OPENING OF 500TH OWN ATM BOOTH 23.11.2021
OPENING OF 200TH SUB-BRANCH

02
Sponsors & Placement Holders
Sponsors
 Mohammad Abdur Razzaque Laskar (Late)
 Mofizur Rahman (Late)
 Barrister Tamizul Haque (Late)
 Mohammad Younus (Late)
 Mohammad Shafiuddin Dewan (Late)
 Mohammad Bashiruddin (Late)
 Mohammad Hussain (Late)
 Nashiruddin Ahmed (Late)
 Muhammad Mosharraf Hossain (Late)
 Mohammad Malek Minar (Late)
 Zakiuddin Ahmed
 M. A. Rashid Chowdhury (Late)
 Engr. Mustafa Anwar
 Prof. Mohammad Abdullah
 Serajuddowla (Late)
 Ibn Sina Trust
 Bangladesh Islamic Centre
 Islamic Economics Research Bureau
 Mohammad Nuruzzaman (Late)

Sponsors & Placement Holders
Placement Holders
LOCAL
 Abul Quasem (Late)
 K. Fazlul Haque (Late)
 Engr. Muhammad Dawood Khan
 Baitush Sharaf Foundation Ltd.
FOREIGN
 Islamic Development Bank, Jeddah, K.S.A.
 Kuwait Finance House (K.S.C.), Safat, Kuwait
 Jordan Islamic Bank, Amman, Jordan
 Islamic Investment & Exchange Corporation, Doha, Qatar
 Bahrain Islamic Bank, Manama, Bahrain
 Islamic Banking System International Holding S.A., Luxembourg
 Al-Rajhi Company for Currency Exchange & Commerce, Riyadh, K.S.A. (Presently Al-Rajhi Company for
Industry & Trade)
 Sheikh Ahmed Salah Jamjoom (Late), Jeddah, K.S.A.
 Sheikh Fouad Abdul Hameed Al-Khateeb (Late), Jeddah, K.S.A.
 Dubai Islamic Bank, Deira, Dubai, U.A.E
 The Public Institution for Social Security, Safat, Kuwait
 Ministry of Awqaf and Islamic Affairs, Kuwait (Presently, Kuwait Awqaf Public Foundation)
 Ministry of Justice, Department of Minors Affairs, Kuwait (Presently, The Public Authority for Minors Affairs)

CORPORATE
INFORMATION

Corporate Information
Name of the Company : ISLAMI BANK BANGLADESH LIMITED
Legal Status : Public Limited Company
Company Registration No. : 10589
C 485 Dated March 13, 1983
Bangladesh Bank License No. : BL/DA/4290/83
eTIN : 376764873732
VAT Registration No./BIN No. : 000000124-0002
Line of Business : Banking
Total Branch : 394
Sub Branch : 228
SME/Agriculture Branch : 30
Zone : 16
AD Branch : 73
Offshore banking Unit : 03
ATM & CRM (own) : 2,856
ATM (shared) : 12,000+
Instant Deposit Machine (IDM) : 126
Sheba Ghar : 47
Agent Banking Outlet : 2,694
Employees : 20,792
Directors : 20
Sponsors : 19
Placement holders : 17
Shareholders : 26,388
MPB holders : 11,924
IBBL 2nd PMB holders : 451
Local Shareholders : 57.71%
Foreign Shareholders : 42.29%
Foreign Correspondents : 594
Chairman : Mohammad Nazmul Hassan
Vice Chairmen : 1. Yousif Abdullah A Al-Rajhi
2. Mohammed Shahabuddin
Managing Director : Mohammed Monirul Moula
Company Secretary : JQM Habibullah, FCS
Head of Internal Control & Compliance : Md. Nayer Azam
Chief Financial Officer : Md. Ashraful Haque, FCA
Credit Rating Agency : Emerging Credit Rating Ltd.
Subsidiary Companies : 1. Islami Bank Securities Limited
2. Islami Bank Capital Management Limited
Statutory Auditors : 1. M/s. Howlader Yunus & Co.
Chartered Accountants
2. M/s. ACNABIN
Tax Advisor : M/s. K.M. Hasan & Co.
Registered Office : 40, Dilkusha C/A, Dhaka-1000, Bangladesh
Phone : PABX (+88-02) 223384816, 223383040
Mobile : +(88) 01711435638, 01711435639
Contact Center : (+88-02) 8331090 or 16259
FAX : (+88-02) 9568634
SWIFT : IBBLBDDH
E-mail : info@islamibankbd.com
Website : www.islamibankbd.com

ORGANOGRAM OF ISLAMI BANK BANGLADESH LIMITED
(Effective from 3rd February 2021)
Shariah Supervisory Committee

BOARD OF DIRECTORS
Chairman
Islami Bank Foundation (IBF)
Shariah Secretariat MANAGING DIRECTOR & CEO
MD’s
Secretariat
Human Islami Bank Training & Internal Control &

Zones CAMLCO Resources Wing Research Academy (IBTRA) Compliance Wing
(SEVP/EVP/SVP) (SEVP/EVP) (SEVP/EVP/SVP)
1. HR Administration Div. 1. Audit & Inspection Div.

2. HR Policy & Discipline 2. Compliance Div.
3. HR Welfare & Services 3. Monitoring Div.
Additional
Managing Director
Deputy Deputy
Managing Director Managing Director
Corporate Investment 1. Corporate Investment Div.-I 1. Foreign Trade Operations Div.
Wing-I
2. Sustainable Finance Div.
3. Syndicate Finance Deptt.
International Trade Wing 2. Foreign Trade Processing Div.
Off-shore Banking Division
(SEVP/EVP/SVP) 4. Project Evaluation Deptt. (SEVP/EVP/SVP)
(Techincal & Financial)
Corporate Investment 1. Coporate Investment Div.-II

International Service Wing 1. Overseas Banking Div.
Wing-II 2. Investment Administration Div.
(SEVP/EVP/SVP)
2. Foreign Remittance Services Div.
3. Financial Institutions Div.
(SEVP/EVP/SVP)
Retail Investment 1. SME Investment Div.-I Investment 1.

2.
Legal Affairs Div.
Imvestment Monitoring Div.
Wing-I 2.SME Investment Div.-II
3. SME Investment Div.-III Managment Wing 3. Investment Control Div.
(SEVP/EVP/SVP) (SEVP/EVP/SVP) 4. Investment Recovery Div.
Retail Investment
Treasury & Fund
1. Retail, Consurmer &
Wing-II Real Estate Investment Div.
(SEVP/EVP/SVP)
2. Rural Development Div.
3. Agriculture Investment Div. Management Div.

Risk Management
Audit Committee Executive Committee
Committee
Management Committee Asset Liability Committee Committee for Recruitment

(MANCOM) (ALCO) & Promotion (CRP)
Additional Managing
Director
1. Board Secretariat Div.

1. Islami Bank Securities Ltd. Board & Company Affairs Wing
2. Share & Bond Div.
3. Corporate Governamce Div.
2. Islami Bank Capital Mgt. Ltd. (SEVP/EVP/SVP) 4. Protocol Services Deptt.
5. Security Custodial Services Deptt.
1. SRP-Coordination (Desk)
2. Asset Liability Risk Management (Desk)
Corporate Branches Risk Management Wing 3. Anti Money Laundering Risk Management (Desk)
4, Credit Risk Management (Desk)
(SEVP/EVP/SVP) 5. FEX Risk Management (Desk)
6. Intermal Control & Operational Risk Management (Desk)
7. ICT Risk Management (Desk)
8. Stress Testing (Desk)
9. Assessment of Capital under Basel (Desk)
Additional
Managing Director
Deputy Deputy
Managing Director Managing Director
1. Branches Control Div. Information & 1. Software Div.

Operation Wing 2. Common Services Div. Communication 2. Infrastructure Management
(SEVP/EVP/SVP)
3. Engineering Div.
4. Payment & Settlement Div. Technology Wing 3. Implemwntation & Operations Mgt. Div.
4. Management Information System (MIS) Div.
5. Safety & Security Deptt. (SEVP/EVP/SVP) 5. Information Security & Risk Mgt. Div.
6. Procurement of Computer
Hardware & Accessories
Deptt. (PCAD)
Alternative Banking Wing 1. Financial Inclusion and Channel Mgt. Div.

2. Digital Service Division
Development Wing 1. Business Promotion & (SEVP/EVP/SVP) 3. ATM Management Div.

4. System Management Div.
Marketing Div.
5. Settlement & Dispute Mgt. Div.
(SEVP/EVP/SVP) 2. Brand & Communication Div.
3. Agent Banking Div. 6. Card Division
7. Contact Centre Deptt.
8. Card Approval, Sanction,
Recovery & MIS Deptt.
Financial Administration
Division Money Laundering &
Terrorist
Financing Prevention
Division
BOARD AND ITS
COMMITTEES

Board of Directors’
Board of Directors Meeting
Chairman Independent Directors

Mohammad Nazmul Hassan Mohammad Solaiman
Md. Kamal Uddin
Vice-Chairmen Dr. Mohammad Saleh Jahur
Yousif Abdullah A AlRajhi Md. Fashiul Alam
Mohammed Shahabuddin (Upto 09.02.2023)
Ex-Officio Director
Directors Mohammed Monirul Moula
Md. Salim Uddin
Abdul Matin Company Secretary
Areef Suleman JQM Habibullah, FCS
Mohammad Sirajul Karim
Mohammad Joynal Abedin
Dr. Qazi Shahidul Alam
Musaid Abdullah A AlRajhi
Syed Abu Asad
Tanveer Ahmad
Mohammad Quamrul Hasan
Khurshid-Ul-Alam
Mohammed Nasir Uddin FCMA
Md. Kamal Hossain Gazi

Executive Committee
Chairman
Md. Salim Uddin
Member
Yousif Abdullah A AlRajhi
Syed Abu Asad
Dr. Mohammad Saleh Jahur
Md. Fashiul Alam
Tanveer Ahmad

Audit Committee
Chairman
Mohammad Solaiman
Member
Mohammed Shahabuddin
Khurshid-Ul-Alam
Mohammed Nasir Uddin, FCMA
Md. Kamal Uddin

Risk Management Committee
Chairman
Abdul Matin
Member
Areef Suleman

Shari’ah Supervisory Committee
Chairman Member
Professor Dr. Mohammad Gias Uddin Talukder Abdur Raquib
Department of Arabic Former Executive President , Islami Bank Bangladesh Limited
University of Chattogram, Bangladesh
Dr. Hasan Mohammad Moinuddin
Associate Professor
Vice Chairman Department of Islamic Studies
Mufti Sayed Ahmad
Asian University of Bangladesh, Dhaka
Head Mufti, Al Jamiatus Siddikiah Darul Ulum,
(Madrasah-e Furfura), Darus salam, Mirpur, Dhaka Dr. Mohammad Monzur-E-Elahi
Associate Professor
Member Secretary Department of Islamic Studies, National University, Gazipur
Professor Dr. Mohammad Abdus Samad
Teacher, Religious attache Moulana Mohiuddin Rabbani
Embassy of Saudi Arabia in Dhaka Muhtamim, Jamia Islamia Darul Ulum, Cornopara, Savar
& Khatib, Railway Jame Masjid, Fulbaria, Dhaka
Member Additional Secretary Professor Md. Mozahidul Islam Chowdhury
Dr. Md. Ruhul Amin Rabbani Principal, Chattogram College, Chattogram
Assistant Professor,
Department of Islamic Studies, Dr. Muhammad Saifullah
Manarat International University, Dhaka Associate Professor, Department of Islamic Studies
Asian University of Bangladesh
Mufti Mohammad Muhibbullahil Baqee

Senior Imam, Baitul Mukarram National Mosque, Dhaka.
Md. Harunar Rashid

Lecturer, Department of Arabic,
Islamic Arabic University, Dhaka

Management Committee
Chairman Mohammad Jamal Uddin Mazumder

Mohammed Monirul Moula Deputy Managing Director
Managing Director & CEO Abul Faiz Muhammad Kamaluddin
Deputy Managing Director
Member Secretary Mohammed Shabbir
J Q M Habibullah, FCS Deputy Managing Director
Additional Managing Director & Company Secretary
Taher Ahmed Chowdhury
Chief Anti Money Laundering Compliance Officer (CAMLCO)
Member
Muhammad Qaisar Ali Head of Retail Investment Wing-I
Additional Managing Director - I Head of Investment Management Wing-I
Head of Corporate Investment Wing-I
Md. Omar Faruk Khan (Upto 28.03.2023) Head of Retail Investment Wing-II
Additional Managing Director - II Head of International Trade Wing
Md. Mostafizur Rahman Siddiquee, Head of Corporate Investment Wing-II
Chief Human Resource Officer (CHRO) Head of Financial Administration Division & CFO
Md. Altaf Hossain
Md. Nayer Azam
Md. Siddiqur Rahman (Upto 09.04.2023)

Senior Executives
Managing Director & CEO Md. Ashraful Haque FCA
Mohammed Monirul Maula Mohammed Kutub Uddin
Md.Mizanur Rahman Mizi
Additional Managing Directors Muhammad Golam Rabbani
Muhammad Qaisar Ali A.T.M. Shahidul Haque
Md. Omar Faruk Khan (Upto 28.03.2023) Muhammad Solaiman
J Q M Habibullah, FCS A.K.M. Kawsar Alam
Muhammad Qamrul Bari Imami
Deputy Managing Directors Sikder Md. Shehabuddin
Md. Altaf Hossain Md. Habibur Rahman
Md. Nayer Azam Bashir Ahamed
Md. Siddiqur Rahman (Upto 09.04.2023) Mir Rahmat Ullah
Mohammad Jamal Uddin Mazumder Md. Gakir Hossain
Abul Faiz Muhammad Kamaluddin A.K.M. Mahbub Morshed
Mohammed Shabbir Md. Ruhul Amin
Chief Risk Officer (CRO) Md. Mizanur Rahman Bhuiyan
Md. Altaf Hossain Ahmed Zubayerul Huq
Meah Md. Barkat Ullah
Chief Human Resources Officer (CHRO) Mohd. Enayet Ullah Siddiquee
Md. Mostafizur Rahman Siddiquee Mohammad Yakub Ali
Md. Raja Miah
Principal, IBTRA Md. Maznuzzaman
S.M. Rabiul Hassan Nazmus Sakib Md. Rezaur Rahman
Muhammad Nurul Hoq
Chief Anti Money Laundering Officer (CAMLCO) Shahidullah Majumder
Taher Ahmed Chowdhury Md. Rezaul Islam
Chief Technology Officer (CITO) Md. Jamal Uddin
Md. Abdur Rob Mridha
Abul Faiz Muhammad Kamaluddin
Md. Farid Uddin
Chief Financial Officer (CFO) Mohammad Rezaul Karim
Md. Ashraful Haque FCA Md. Akhter Hossain
Md. Mozahidul Islam
Senior Executive Vice Presidents Md. Mosharraf Hossain
Md. Mahboob Alam Mohammad Nurul Hossain
Mahmudur Rahman Munshi Rezaur Rashid
Mizanur Rahman Abdul Naser
Muhammad Sayeed Ullah Mohammad Habibur Rahman
Md. Maksudur Rahman
G.M.Mohd. Gias Uddin Quader
Senior Vice Presidents
A.K.M. Abu Siddiqui
K.M. Munirul Alam Al-Mamoon
Md. Shahidul Islam
A.S.M. Rezaul Karim
Jamal Uddin
Md. Rafiqul Islam
Md. Ashraf Ali
Muhammad Kamaluddin (Jasim)
A.K.M. Shafiar Rahman
Abu Sayed Md. Idris
Miftah Uddin Md. Abu Sufian
Muhammad Zillur Rahman Al-Mahmud
Executive Vice Presidents Muhammad Zakir Hussain
Mohammed Sirajul Alam Md. Nazmul Huda Siraji
Md. Anisul Haque Md. Zillur Rahman Patwary
Md. Mahbub-a-Alam Md. Amir Hossain Bhuian
Abu Noman Md. Siddiqur Rahman Md. Manirul Islam
Md. Aminur Rahman Md. Ashraf Imam
Md. Shafiul Azam Md. Matiur Rahman
Md. Abdus Sobhan Abdul Hamid Miah
Md. Abdus Salam Md. Nasir Uddin
Md. Shamsuddoha Md. Khaled Shaifullah
M. Zubayer Azam Helali A.A.M. Mazharul Islam

Senior Executives
Md. Nasim Ahmed Mohd. Nazim Uddin Talukder

Md. Ashraful Alam Sohel Aman
Md. Golam Mostafa Md.Anowarul Haque
Abdul Kader Sarder Moshtaqe Ahmed
Mohammad Nurul Karim Mohammed Eyahya
Md. Ziaullah Mahmuda Sultana
Md. Abul Kalam Azad Syed Tazul Islam
Md. Saroar Hossain Mohammad Manzurul Haque
Md. Shahidul Haq Akand Khaled Mahmud Raihan FCCA
Abul Kasem Md. Mostafa Md. Jakaria
Md. Mustafizur Rahman Mohammed Asiful Hoque Chowdhury
A.F.M. Anisur Rahman Kazi Shah Omar Faruk FCA
A.K.M. Delowar Hossain Mohammad Sana Ullah
Md. Faruque Al-Mamun Md. Farid Uddin, FCA
Md. Ibrahim Bhuiyan Monjurul Alam
Abul Laise Mohd. Khaled Mohammad Shahadat Ullah
Mohammad Mohi Uddin Md. Rafiqul Islam
Md. Anisur Rahman Md. Nuruzzaman
Ruhul Amin Mohammad Abdur Rahim FCA
Md. Shamsul Alam Siddique Mohammad Jahangir Alam
Md. Murshed Alam Muhammad Jamal Uddin
Md. Jainal Abedin Md. Yakub Ali
Md. Asaduzzaman Md. Mizanur Rahman
B.M. Habibur Rahman Md. Golam Mostofa
Md. Abul Kalam Azad Md. Abul Hasan
Mohd. Anwar Hossain Md. Khalequzzaman
Md. Khalilur Rahman Md. Abdul Latif
Mohammed Monzurul Islam Chowdhury Muhammad Azizul Hoque
Muhammad Hasnain Abid S.M. Tanver Hassan
Md. Mahbub Al Hassan Nazrul Islam
Md. Shahadat Hossain Mohammad Abdul Mannan
Mohammad Masud Mohammad Ehsanul Islam
Shaick Farid Ahmed
Mahmud Hossain Khan
Muhammad Anisur Rahman
Md. Abdullah Rashed
Mohammed Sanaullah
G.M. Abdur Razzak
Md. Ataur Rahman
S. M. Mizanur Rahman
Md. Habibur Rahman
Muhammad Obaidullah
Md. Shahid Ahmed
Md. Hafizur Rahman
Md. Jahidul Islam, FCMA
Habibullah Al Amin
Md. Abdul Matin
A.K.M. Enayet Husain
Md. Abdul Jalil
Md. Shahadat Hossain
Md. Zahirul Islam
Shahidul Alam
Md. Shahjahan
Md. Abul Khair
Sheikh Mohammad Omar

DIRECTORS’
PROFILE

Directors’ Profile
Mohammad Nazmul Hassan

Chairman
Mohammad Nazmul Hassan is the Chairman of Board of Directors of Islami Bank

Bangladesh Limited and he represents Armada Spinning Mills Limited as Director
on the Bank’s Board. Prior to taking up this position in 2018, he retired as professor
from Dhaka University. His major area of specialization is Development Economics.

Yousif Abdullah A AlRajhi

Vice Chairman
Yousif Abdullah A AlRajhi is a Vice Chairman of the Board of Directors of the Bank.
He completed his graduation in Business Administration majoring in Economics &
Political Science from King Saud University, KSA in 1986. Then he obtained MA
degree in Development Administration from Western Michigan University, USA in
1991. He also completed Internal Auditor Course, Chain Management & Leadership
Course and Speed Reading and Development Round Attendance Certificate Course.
Mr. Yousif is General Manager-cum CEO of Al-Rajhi Company for Industry and
Trade, KSA with 29 years of work exposure including banking career with Al-Rajhi
Banking and Investment Corporation. He is also a board member of many shareholder
Corps in Saudi Arabia and outside. He visited various eastern and western countries of
the world and participated in many international seminars, symposia and conferences.

Mohammed Shahabuddin
Vice Chairman
Mohammed Shahabuddin is a Vice Chairman of the Board of Directors of the Bank.

He represents JMC Builders Limited in the Board of Directors of Islami Bank
Bangladesh Limited. He completed his M.Sc. Degree from Rajshahi University in
1974. Then he obtained L.L.B. Degree from Rajshahi University in 1975. He is a
Heroic Freedom Fighter and one of the upholders of Liberation Flag at own district
Pabna in the glorious Liberation War, 1971.
Mohammed Shahabuddin started his career in Judicial Service in 1983 and was
District Judge till 2006. He also discharged his duties as Chairman of Labor Court in
2006, Lawyer of Bangladesh Supreme Court during 2008-2011 and Commissioner of
Anti Corruption Commission during March, 2011 to March, 2016. He successfully
performed various important assignments during his service period including Member
of Judicial Inquiry Committee, Chairman of Judicial Inquiry Commission and a lot
more.
Mohammed Shahabuddin visited various countries of the world and participated in

many local and international seminars, symposiam, workshops and conferences on
Case Management and Court Management organized by Judicial Training Academy.
He attended as representative of Bangladesh at International Seminar in Beijing,
capital of China, organized by Commonwealth on Prevailing Law in Bangladesh, etc.
He also worked as a Journalist of Daily BanglarBani during 1980-1982. He is also
engaged in various social, educational and cultural organizations of the country.

Md. Salim Uddin

Director & Chairman, Executive Committee
Dr. Md. Salim Uddin is a Fellow Chartered Accountant (FCA), Fellow Cost & Management Accountant (FCMA), and Certified Public
Finance Accountant (CPFA). As Professional Accountant, he is a fellow member of three professional accounting bodies which are: (i) the
Institute of Chartered Accountants of Bangladesh-ICAB (ii) the Institute of Cost and Management Accountants of Bangladesh-ICMAB and
(iii) The Chartered Institute of Public Finance & Accountancy-CIPFA, UK. He obtained his Honours in Commerce and Master in Accounting
from the University of Chittagong. He was all through a brilliant student and stood First in the First class of M.Com Final examination. He
joined in the department of Accounting of the same University in 1994 as a lecturer and has been promoted to the posts of Assistant Professor
and Associate Professor and Professor in 1996, 2002 and 2010 respectively. In 1999 he went to Belgium to study MBA at the University
of Brussels and obtained his MBA degree with a grade of distinction. He did his PhD on “Application of International Financial Reporting
Standards-IFRS in Bangladesh”.
Before joining the University of Chittagong, he joined the Government College for a very short time after qualifying Bangladesh Civil Service-
BCS Examination in 1993. Now he is a faculty member, Professor in the Department of Accounting, University of Chittagong, Chittagong,
Bangladesh.
He was an Independent Director of The Chittagong Stock Exchange-CSE appointed by the Government. He was also an Independent Director
of Premier Bank Ltd and Director of Rupali Investment Ltd. Lastly, he was a Director of Rupali Bank Ltd- a nationalized commercial bank
appointed by the Government. He was the Vice President of the Institute of Chartered Accountants of Bangladesh-ICAB and Chairman,
Bureau of Business Research, Faculty of Business Administration, University of Chittagong;
At present, he is Chairman of Bangladesh House Building Finance Corporation-BHBFC; Chairman, Executive Committee of Islami Bank
Bangladesh Ltd-IBBL, Vice President of Institute of Cost and Management Accountants of Bangladesh-ICMAB and Member of Finance
Committee, University of Chittagong.
He has been working as Financial Consultant/Adviser in different organizations since 1993 and gathered vast experience in the field of
designing accounting system, auditing and assurance practices, project management, project financing through debt and equity, business
negotiation and regulatory compliance etc,. Mr. Salim has a keen interest in theoretical and applied research. His main areas of interest
are International Accounting, IAS/IFRS, Forensic Accounting, Creative Accounting and Capital Market. He has more than sixty research
publications at home and abroad in various fields of Accounting and Finance. He also actively participated and presented valuable papers in
many national and international seminars, training programs and workshops. He attended an extensive training program on IFRS and ISA
during July-August, 2008 in the UK funded by World Bank and jointly organized by the Ministry of Commerce, Bangladesh and ICAEW, UK.
He also participated in The Program on Consultancy Training (PCT) in Japan from 1 March to 14 March 2018 (Two weeks) organized and
partly financed by AOTS Chubu Office (CKC).
He worked and completed a project on E-Brokerage in Belgium and gathered experience in negotiating international business and finalising
contract. For the above purposes, he widely visited USA, Canada, UK, Japan, France, Germany, Belgium, Netherlands, Luxembourg, Turkey,
Saudi Arabia, UAE, Singapore, Hong Kong, China, Malaysia, Thailand, India, Sri Lanka and Nepal.

ISLAMI BANK BANGLADESH LIMITED
Abdul Matin
Director & Chairman, Risk Management Committee
Abdul Matin is the Chairman of Risk Management Committee of Islami Bank

Bangladesh Limited as the representative of Uniglobe Business Resources Limited. He
was one of the Principal Staff Officer at Army Head Quarters and served Bangladesh
Army in different capacities. He was the Chairman of the Committee for preparation
of specifications of National Smart Identity Card under the Election Commission of
Bangladesh. He played an important role in policy making of Bangladesh Election
Commission, Bangladesh Road Transport Authority, Bangladesh Ordnance Factory,
Bangladesh Machine Tools Factory and Bangladesh University of Professionals and
different national and international institutions. He obtained B.Sc. (Engineering)
degree from Bangladesh University of Engineering and Technology (BUET) and
Masters Degree on War Studies and Masters Degree in Defense Studies from National
University. He is also a graduate of Chittagong University.
Abdul Matin participated in mine clearance operation in Kuwait after the gulf war
and received honorary certificate from Kuwait Authority on successful completion
of the operation. He visited many countries related to Government assignments. He
actively participated in modernizing Bangladesh Army. He is a fellow of Engineering
Institute of Bangladesh. He completed Armed Forces War Course, Staff Course,
Technical Staff Course and Capstone Course beside other mandatory courses and
Training. He completed Radar specialization course from China. He served Army
Golf club as Senior Vice President from 2011 to 2014.

Areef Suleman
Director
Areef Suleman is currently the Director Economic Research and Institutional Learning
at the Islamic Development Bank (IDB) in Jeddah, Saudi Arabia. In this capacity, he
heads the team providing thought leadership in all matters related to economic policy,
socio-economic research and knowledge management needed to support initiatives of
IDB and its Member Countries. Dr. Suleman has a distinguished career in formulating
and leading the implementation of high level strategies, policies and programmes
from the firm through to the global level to achieve measurable results. His career is
marked by consistent advancement through positions of increased responsibility and
impact with leading international development organizations.
He has a Ph.D in Economics along with a Masters in Business Leadership and a

Masters in Commerce. Dr. Suleman’s career began in post-apartheid South Africa
where he was instrumental in developing inclusive growth-oriented strategies. Prior to
joining the IsDB, Areef Suleman functioned as CEO of a Government Fund to foster
innovation in South Africa. He was responsible for jointly establishing and managing
the consulting arm of South Africa’s premier development finance institution wherein
he managed their consulting services on the African continent.
Areef Suleman represents Islamic Development Bank (IDB), Jeddah, KSA in the
Board of Directors of Islami Bank Bangladesh Ltd. and is also a Director of Islami
Bank Securities Limited.


Director
Mohammad Sirajul Karim is a Director of Islami Bank Bangladesh Limited as

representative of Excel Dyeing and Printing Ltd. He started his career as Chemist
in Karnaphuli Paper Mills Ltd., Chandraghona and then joined as Research Chemist
in Pakistan Council of Scientific and Industrial Research and then as a Lecturer in
Bangladesh Agricultural University, Mymensingh in 1971. He was promoted to
Professor and was there till 2009. At present he is the Professor of Chamistry and
Chairman of Basic Science Department of Primeasia University, Banani, Dhaka.
He obtained B.Sc. (Hons), M.Sc. (Applied Chemistry) and Ph.D. degree from the
University of Dhaka. He obtained Post Doctorate Fellow from the University of
Karlstad, Sweden. He was engaged as Guest Scientist, Senior Visiting Scientist
and Visiting Professor in different universities including University of Darmstadt,
Germany, University of Karlstad Sweden and Abo Akademy University, Finland. He
participated in different seminars and training programs both at home and abroad.
Prof. Karim has written many books including primary, secondary and tertiary levels.
He is an author of a few books of poems and short stories. Dr. Karim has evaluated a
few techniques for pulping and bleaching in the field of paper science and technology.
He has large number of publications in different journals at home and abroad.

Md. Kamal Uddin

Independent Director
Md Kamal Uddin is an Independent Director of the Bank. He has been serving as

“Treasurer” of University of Dhaka since June 2012. Professor Kamal started his
career as Lecturer in the Department of Marketing in 1993 in University of Dhaka.
Now he is a Professor of Department of International Business of University of
Dhaka. He was a student of Dhaka College and obtained B.Com (Hons.) and M. Com
from University of Dhaka. He did M. Econ and PhD in Development Economics
from Osaka University, Japan. He was Postgraduate Researcher in Kyoto University,
Post-doctoral researcher in Cambridge University and University of Nice. His current
research interests include Competition of Telecommunications and International
Capital Movements. Many of his research papers are published in national and
international Journals. He was elected treasurer of DUTA and other important
executive bodies of University of Dhaka. Prof. Kamal believes innovative persons
must have 3Cs- Competency, Commitment and Character.
Md Kamal has been serving as an Independent Expert Member in Minimum Wage

Board of Labor and Employment Ministry of Bangladesh since 2010. He also served
as Director in the Board of Directors of Bangladesh Biman Airlines for 2014 and
2015. Few of his other involvements are Member of Finance Committee of University
Grants Commission (UGC), Member of Finance Committee, University of Dhaka
and Member, Governing Body, Dhaka School of Bank Management. Prof. Kamal has
visited many countries, few are like USA, China, Japan, UK, France, Italy, Germany
other EU countries, Thailand, Malaysia, Vietnam, India, Dubai, and participated in
many international seminars, symposiums & conferences. He is from Brahmanbaria.


Director
Mohammad Joynal Abedin is a director of the Bank as representative of ABC

Ventures Limited. He started his career at Bangladesh Krishi Bank as a Probationary
Officer in 1977. He was Managing Director (C.C) of Bangladesh Krishi Bank and
Deputy Managing Director of Rupali Bank Limited and served Janata Bank as
General Manager. An associate of Institute of Bankers Bangladesh, Mohammad
Joynal Abedin participated in different seminars in home and abroad including
International Conference on Investment Project Management in Turkey. He presided
over the meeting of hoisting liberation flag at Sreenagar on 13th March, 1971. He
fought in the liberation war. He is a researcher on Liberation War Affairs in Asiatic
Society of Bangladesh. He is life-member of Bangla Academy, Bangladesh Arthoniti
Samity, Sir J.C. Bose Foundation and member of Officers Club, Dhaka and General
Secretary of Bikrampur Foundation. He graduated from the University of Dhaka.
He is the Author of Muktijudder Diary, Muktijuddey Bikrampur, Muktijudder
Prottasha & Prapti, Karmojiboner Smriti, Kabirer Muktijuddo, Ujaner Jatri, Bankey
Sharetherohajerden and Bangabandhu: Neta o Shasok. He edited Akattorer Srinagar,
Kingbodanti Purus Abdul Hakim Bikrampuri and Chief Editor of Maa (a collection
of mother). He presented 10 articles in the national seminar of Bangladesh Economic
Association. He is also the column writer in the Daily Newspaper. He receives 22
awards/padak for social work and research on Liberation War Affairs.


Director
Dr Qazi Shahidul Alam is a Director of the Bank representing Platinum Endeavours Limited. Currently, he is the Chairman
of the Governing Body of the Uttara Adhunik Medical College, Vice Chairman of Islami Bank Foundation, Chairman in
the Governing Body of Islami Bank Medical College of Rajshahi, Chairman of the Hospital Committee of the Islami Bank
Foundation, Professor of Orthopedic Surgery at Anwar Khan Modern Medical College, Member of the Senate at BSMMU
(Bangabandhu Sheikh Mujib Medical University), member of the Governing Board at Sirajul Islam Medical College, member
Trustee Board of the BNSB (Bangladesh National Society for Blind) Hospital in Khulna, and member of the Executive
Committee of the BMA (Bangladesh Medical Association).
Dr Alam graduated from Dhaka Medical College in 1972. In 1980, he obtained D. Orthopedic Surgery from the University of
Vienna and Master of Surgery on Orthopedic Surgery in 1985 from the University of Dhaka. Subsequently he was conferred
a Fellow of the International College of Surgeons USA in 1987. He has received advanced training in Orthopedic Surgery
at The Johns Hopkins Medical Institutions, USA, Advanced Training in Tissue Culture and Bone Banking-- Atomic Energy
Commission of Tyaian, China through the International Atomic Energy Commission, and has been WHO Fellow in Indonesia.
Professor Alam has served the Government of Bangladesh in various capacities at Dhaka Medical College and the National
Institute of Trauma and Rehabilitation and was Founder Chairman and Professor, Orthopedic Surgery at BSMMU, Director,
Shaheed Suhrawardy Hospital and Director, Medical Education, Directorate General of Health Service.
Dr Alam holds the distinction of being General Secretary, Dhaka Medical College Students Union, 1972 (first election after
independence), Convener, Bangladesh Medical Internee Association, 1973, President, Dhaka Medical College Teachers’
Association, 1991-1994 (2 terms), Secretary General, Bangladesh Medical Association, 1994-96, President, Bangladesh
Orthopedic Society, 1997- 2001 (2 terms), Secretary, PROKRICHI (Professional Association of Engineers, Doctors and
Agriculturists), 1995-97, Founder President, Postgraduate Doctors’ Society of Bangladesh, 1998-2001 and is currently
President, Bangladesh Patients Welfare Fund. Bangladesh Medical Association (BMA) through Prime Minister Sheikh Hasina,
awarded a Gold Medal to Professor Alam in April 2011 for his devotion and dedication to Medical Service.
Dr Alam is a well travelled person, has presented innumerable scientific papers and Chaired Scientific Sessions at National and
International Conferences at home and abroad.

Tanveer Ahmad
Director
Tanveer Ahmad is a Director of the Bank representing Paradise International

Limited. He completed his MBBS Degree from University of Science & Technology,
Chittagong in 2009. Then he obtained MD (Doctor of Medicine) in Cardiology from
Bangabandhu Sheikh Mujib Medical University in 2017. He founded T A Trading
in 2003. He joined as Assistant Registrar in the Department of Medicine, University
of Science & Technology, Chittagong in 2012 before joining Sir Salimullah Medical
College & Hospital & Mitford as a post Graduate Fellow. At present he has been
working in United Hospital, first as a Fellow Cardiologist in 2017 and later on as a
Specialist in the Department of Cardiology.
Tanveer is the owner of T A Trading and Managing Director of Infinia Knit Fabrics
Ltd. & Paradise International Ltd. He manages and supervises the concerned
institutions.
Tanveer visited various countries of the world and participated in various seminars
and workshops conducted at National and International level by various local
organizations including Bangladesh Society of Cardiology, Transnational (TNCS),
BIT and Multinationals (MNCs), American College of Cardiology (ACC) workshops.
He also volunteered for the free medical camp and relief work in various rural areas of
Bangladesh. He is a life time member of Bangladesh Cardiac Society and an associate
member of Bangladesh Intervention Cardiac Society. He is involved in a number of
research studies and his thesis work on young patients with cardiovascular diseases
was published in Bangladesh Heart Journal. He is also engaged in various social,
educational and cultural organizations of the country.

Musaid Abdullah A AlRajhi

Director
Musaid Abdullah A AlRajhi represents Arabsas Travel & Tourist Agency, Kingdom
of Saudi Arabia (K.S.A.) in the Board of Directors of Islami Bank Bangladesh
Limited. He is a Business Graduate from Institute of Business Administration, Riadh,
K.S.A. in the year 1988. He has long 27 years of working experience during which
he served as Branch Manager at Al-Rajhi Bank, General Manager at Al Rajhi Foam
& Plastic Factory Ltd. and General Manager at Afnan Water Factory Ltd. A talented
and successful businessman, presently he runs the Abdullah Abdul Aziz Al Rajhi
& Sons Real Estate Development Co. being its General Manager since 2007. He
visited various countries of the world and participated in many international seminars,
symposia and conferences.

Syed Abu Asad

Director
Syed Abu Asad is a Director of Islami Bank Bangladesh Limited. He represents

Excelsior Impex Company Limited in the Board of Directors of Islami Bank
Bangladesh Limited. He has completed B. Com (Hons) & M. Com. (Finance) Degree
from Dhaka University in 1980. Mr. Abu Asad was a brilliant student and stood 6th
in S.S.C Commerce in Jashore Board. He is also a Diplomaed Associate of IBB.
Abu Asad started his career in Banking Service in 1983 in Rupali Bank Limited
as Senior Officer and served as Head of the Branch - many branches of local and
overseas. He has also served as General Manager in Khulna Division, Local Office,
Dhaka South and Head Office, Dhaka. He was awarded many appreciation letter,
for achieving Deposit and Recovery Target, in Different Branches and Division.
He was promoted to the post of Deputy Managing Director and posted at Sonali
Bank Limited, Head Office, Dhaka. Lastly, he was promoted to the post of Managing
Director and posted at Rajshahi Krishi Unnayan Bank. He has vast experience in
Branch Banking, Foreign Exchange and Industrial Credit in Banking profession.
Abu Asad visited various countries of the world participated in many seminars,
workshops & training programmes at home and abroad such as Correspondent
Banking in Thailand, Letter of Credit and UCP-500, E-Banking Workshop Training,
Information Technology in Banking & Islami Banking and Finance in Pakistan. He is
also engaged in various social, educational and cultural organizations of the country.


Director
Mohammad Quamrul Hasan represents Grand Business Limited in the Board of Directors of Islami Bank
Bangladesh Limited. He completed his M.B.A (Marketing) from Royal Roads University, British Columbia,
Canada and BSS (Hon’s) M.S.S, Economics from University of Dhaka.
Hasan started his career as Zonal In-Charge, Alpha Tobacco Co. Ltd. in 1984. Before joining the Board of
Directors of Islami Bank Bangladesh Limited, he completed his long journey with Meghna Petroleum Ltd.
from 1988 to 2018 in various areas of job responsibility. Lastly, he was the Managing Director and CEO,
Jamuna Oil Co. Ltd, Chittagong, (A subsidiary of Bangladesh Petroleum Corporation). Besides, he was the
Director of different Companies like; Director, ELBL (Subsidiary of BPC), Mobil Jamuna Bangladesh BD
Ltd., Omera Gas1 Ltd., Omera Petroleum Ltd. and Omera Cylinder Ltd. He is also the Director of Islami Bank
Capital Management Ltd. (Subsidiary of IBBL).
Hasan has a diverse marketing background on petroleum and FMCG products. He is fully conversant with
marketing and business development of FMCG Products. He has also an excellent interpersonal skill, believes
in encouraging people and initiative in work for organizational development.
Hasan is a life member of Greater Faridpur Chakurijibi Samity, Dhaka University Alumni Association
(DUAA), Bangladesh Economic association (BEA) and Joint secretary, Dhaka University Economics
Department Alumni Association (DUEDAA) .
Hasan visited various countries of the world and participated in many seminars, workshops & training
programmes at home and abroad such as Leadership Excellence in Malaysia, Merchandising Skills in UAE,
Treasury & Trade Solutions in Kuala Lumpur, Malaysia and Persuasive Selling Skills in Dubai, UAE and also
attended training course in Sri Lanka, Thailand, India, Australia, Kingdom of Saudi Arabia and Singapore. He
is also engaged in various social, educational and cultural organizations of the country

Dr. Mohammad Saleh Jahur

Dr Mohammad Saleh Jahur is an Independent Director of the Bank. He is a Professor of Accounting and Banking in the department
of Finance, University of Chittagong. He started his career as Lecturer in the Department of Finance in 1993. Before, joining the
university, He worked at MIDAS (an NGO; now a financial institution) and Bangladesh Petroleum Corporation (an Autonomous
Government Organization) as executive. He also completed BCS successfully but did not join.
Dr Jahur completed all academic programs –SSC, HSC, B.Com (Hons.) in Accounting, and M.Com in Accounting with outstanding
results. He did his Ph.D.on Lease Financing in Bangladesh Study of Policy and Performance under the joint supervision of Professor
Dr S.P.Singh and Professor Dr. Manoj Anand in University Business School, Punjab, India under ICCR Scholarship of Government
of India in 2000-2002. He did a diploma on Financial Reporting Standards and Assurance under the World Bank Scholarship at
London, United Kingdom in 2008. He also studied on Green Productivity for Industry under the scholarship of METI, Japan in 2013.
He also worked in Chartered Accountancy Firm for five months.
He is a continuous researcher, working in the area of corporate finance, stock market and industrial productivity for many years. He
has a good number articles published at home and abroad. He also participated many seminar and conference as paper presenter,
discussant, and session chair at home and abroad. Besides, eleven students got awarded with M. Phil. and Ph.D. under his supervision
from the University of Chittagong and about fourteen students are pursuing M. Phil. and Ph.D. at universities in Bangladesh and
Malaysia under his supervision/Joint supervision at present.
Mr. Jahur successfully implemented the projects titled “Grameen Bank and Socio-Economic Changes—A Study of Select Loanees”
and “Higher Education Quality Enhancement Project“ awarded by German Cultural Center-Goethe institute, Dhaka, and University
Grants Commission, World Bank & Government of the People’s Republic of Bangladesh respectively. Besides, he worked as Editor
of Capital Market Journal-Vision and Academic Journal-of Faculty of Business Administration of University of Chittagong.
Professor Jahur served as an Advisor to Chittagong Capital Limited-a Brokerage of Chittagong Stock Exchange, Bangladesh and
GPH Ispat Limited for three years from 2009 to 2012. He worked as an Independent Director of GPH Ispat Limited for two terms
(6 years) i. e. from 2012 to 2018. He has also been working as an Independent Director of Hakkani Pulp and Paper Mills Limited
since September, 2017. He is a member of Chittagong Club Limited, Chittagong and Life Member at Ma O Shishu Hospital Limited,
Chittagong & Chittagong Diabetics Association, Khulshi, Chittagong. Prof. Jahur has visited many countries and participated in
many international seminars, symposiums & conferences.

Md. Fashiul Alam

Md Fashiul Alam is an Independent Director of the Bank. Currently, he is the Dean of Faculty of Business Studies, Port City
International University, Chittagong. He was the Professor of Department of Management and Dean of Faculty of Commerce
& Chairman of Department of Management, University of Chittagong and the former Vice Chancellor, Feni University. He was
also the Senior Research Fellow, Institute of Business Management, Karachi, Pakistan. He obtained B.Com Hons and M.Com
Degree in Management from the University of Chittagong and stood first in order of merit in both examinations. As an Indian
Government Scholar, he earned Ph. D in 1982 on ‘Collective Bargaining in Bangladesh Jute Industry’ from the University of
Punjab, Chandigarh. He did Post Doctoral Research from the University of London, UK as a Commonwealth Academic Staff
Fellow in 1991-92. He was also a Visiting Scholar in 2009 at University of Texas A& M, USA.
Md Alam participated in the Australian Academy of Business Leadership sponsored SIBR Conference 2015, Sydney, Australia,
April 17-20, 2015, 8th SKM Symposium and 2nd CBSM Conference, Magdeburg, Germany, September 17-20, 2013, Canada
International Conference on Education (CICE, 012) CICE-2012 held in June 18-21, 2012 at University of Guelph, Canada and
others in France, USA, China, South Korea, Malaysia, Taiwan, Bahrain during his professional tenure.
Md Alam has traveling experience in different countries like United Kingdom, Saudi Arabia, France, USA, India. South Korea,
Thailand, Malaysia, UAE, Qatar, Pakistan. China, Sri Lanka, Oman, Bahrain, Singapore, Taiwan, Canada, Turkey, Germany,
Switzerland, Hong Kong. Australia and has language proficiency in Bengali, English, Arabic, Urdu and Hindi.
Md Alam is well known as a reputed scholar, potential academia, creative researcher, efficient administrator, dedicated social worker
and a man of high dignity and distinct personality. His fields of specialization cover mainly HRM, HRD, Industrial Relations, and
Strategic Management. Besides holding a long experience of pursuing research in management and allied fields and conducting
project work, he is an author of 41 articles published in reputed and recognized national and international journals.
He is as an Independent Director of the Peninsula Chittagong Limited since 2014. He was founder & Chairman of Nazmul-Jahan
Foundation and Chairman of Sitakunda Foundation (A Social & Development Organization), Estd, in 1998. He is also the founder
& President of Hill-Side Public School & Technical College (Estd. 2000) situated near Chittagong University.
He was Secretary General of Bangladesh Federation of University Teachers Association in 1994 and President of Chittagong
University Teachers Association in 1993 and 1994.

Khurshid-Ul-Alam
Director
Khurshid Ul Alam is a Director of Islami Bank Bangladesh Limited as representative of Lionhead Business Resources Limited.
He started his career as Assistant Director, Bangladesh Bank in 1976 and retired as Executive Director in 2009. He worked
successfully as Managing Director of Security Printing Press (BD) Limited, a subsidiary company of Bangladesh Bank. He
obtained B.A (Hons.) and M.A in Economics from Dhaka University in 1972 and 1974 respectively and he also obtained his
M. A in Economics from University of New England, New South Wales, Australia in 1986. Besides, during his tenure in
Bangladesh Bank he has attended course works and High level seminar in IMF Training Institute in Washington in the year
1998 and 2002, undertaken study tour in Peru & Bolivia under the sponsorship of MFI & DFID and study tour in Malaysia &
Indonesia under the sponsorship of US AID. He also attended Top level conferences on High Security Printing in Switzerland,
Germany, Shanghai and Bangkok.
Alam has a career that spans over four decades in the banking sector, two of the prominent Private Universities (i.e. East
West University and University of Liberal Arts Bangladesh) and other multidisciplinary fields, he has seen himself grow in
terms of aptitude and managed to demonstrate his expertise as a professional regardless of the field or task. As Chairman of
the Audit Committee and Member of Risk Management Committee of Pubali Bank, his significant contribution to elevate
the financial management aspect to a new height in respect of asset quality of the bank has incessantly been acknowledged
and appreciated. He accomplished his duty as Deputy Managing Director of Pubali Bank Limited from 2009 to 2011. He has
remained consistently successful in delivering what was expected from him. He has worked in result oriented comportment
knowing there was always room for improvement and thus have managed to attain the highest level of competency at work.
With ample co-operation, he has succeeded in bringing prosperity to the department and the institute, at large, where he has
offered his services. Letting his action do the talking and abiding by his norms, morals and an obdurate wall of integrity in
any line of work, he has performed in a Specific, Measurable, Achievable, Realistic Time-bound (SMART) manner in order to
achieve the goals set in the core strategic management policy. His work experiences have collectively enriched his knowledge
of work in the financial sector and other related areas where he was entrusted with specific responsibilities.
Alam is a Life Member of Bangladesh Economic Association and Bangladesh Bank Colony Scout Group, Chattogram.

Mohammad Solaiman
Independent Director & Chairman
Audit Committee
Mohammad Solaiman is an Independent Director of the Bank. He is a Commerce Graduate under the University of Chittagong
and stood First Class First in order of merit in the year 1971. He passed SSC Examination in First Division in the year 1967
and HSC Examination in the year 1969 securing 10th position jointly in order of merit under Cumilla Board. Mr. Mohmmad
Solaiman qualified as Chartered Accountant in the year 1978 from the Institute of Chartered Accountants of Bangladesh
(ICAB) and became associate member of the Institute in the same year. After qualifying professional examination Mr. Solaiman
started his career as Public Accountant as a Partner of Muhammad Shaheedullah & Co., Chartered Accountants and continued
till the year 1984. He then started accountancy profession under the name and style Mohammad Solaiman & Co., Chartered
Accountants and continued till the end of the year 1993.
He then joined Government service as Accountant Member of Taxes Appellate Tribunal on contact basis for one year. The
Government, being highly satisfied with his sincerity, punctuality, efficiency and devotion to duties, was pleased to extend his
contract for consecutive three terms. Thereafter, he faced Public Service Commission and got success therein. The Government
of Bangladesh appointed him as Accountant Member ((Ex-Officio Joint Secretary) of Taxes Appellate Tribunal under Internal
Resource Division (IRD), Ministry of Finance on permanent basis. Mr. Mohammad Solaiman was subsequently promoted to
the top post of the Taxes Appellate Tribunal, the highest fact finding authority of the Income Tax Department as President (Ex-
Officio Additional Secretary) Ministry of Finance, Government of the Peoples Republic of Bangladesh.
Mohammad Solaiman is the only Chartered Accountant in Bangladesh who was fortunate to hold the position of Accountant
Member and President of Taxes Appellate Tribunal on permanent basis. He retired from the Government Service in the end of
the year 2008.
After retirement, Mr. Solaiman started accountancy profession as Public Accountant under the name and style M. Solaiman&
Co., Chartered Accountants. During his long 44 years professional experience, he successfully acted both in Bar and Bench
of taxation law with high dignity and reputation. He acted as External Auditors, Internal Auditors, Tax Advisor, Company
Law Advisor and Consultant of so many clients at Corporate and non-corporate sectors. He participated in many seminars,
conferences and workshops related to accountancy profession both at home and abroad. Mr. Solaiman is a fellow member of
the Institute of Chartered Accountants of Bangladesh (ICAB) bearing enrollment number 161.
He travelled different countries of the world. He is associated with some social and religious activities in the country. He has
behind him wife and two sons.

Mohammed Nasir Uddin FCMA

Director
Mohammed Nasir Uddin FCMA is a Director of Islami Bank Bangladesh Limited

as representative of BLU International Limited. He obtained M.Com (Master of
Commerce) in Accounting from Dhaka University in 1989. He also obtained CIMA
Adv Dip MA (UK) from Chartered Institute of Management Accounts (CIMA) of
London, U. K in 2012 and CMA & FCMA from the Institute of Cost and Management
Accountants of Bangladesh (ICMAB) in 1995.
Mohammed Nasir started his career as Manager (Audit) in Sunman Group. Mr. Nasir
has a career that spans over 30 (Thirty) years in the field of Industry namely Sunman
Group, Monno Group of Industries, MEB Group, Saad Musa Group, S.A Group,
Opex & Sinha Textile Group and Bay Group, etc. in different capacities particularly
worked as Corporate Sr. GM & Group CFO for last 18 years. He has also sector wise
experience arena specially, FMCG export oriented sector like Garments, Composite
Textile, Ceramics, Leather & Foot Wear etc. Mr. Nasir participated in many National
and international seminars, symposiums & conferences. His work experiences have
collectively enriched his knowledge of work in the financial sector.
Mohammed Nasir has a career objective to play Strategic & Management role in
Accounts, Finance and Audit activities, Project & Working Capital financing, Fund
administration, Strategic Cost Management, Establish Risk based Internal Control &
Compliance and Audit System.


Director
Md. Kamal Hossain Gazi, Deputy Managing Director, Investment Corporation

of Bangladesh (ICB) has been nominated Director of Islami Bank Bangladesh
Limited(IBBL). He completed his Graduation and Post Graduation degrees in the
Discipline of Marketing from the University of Dhaka. He is also a Diplomaed
Associate of IBB.
Mr. Kamal Hossain Gazi started his career at Investment Corporation of Bangladesh
(ICB) in 1987 as Senior Officer and served in different capacities as Department &
Division Head, as well as Branch Head of ICB Bogra, Khulna & Chittagong branch.
Recently he has been promoted to the post of General Manager of ICB and placed at
Head of Accounts & Finance, Legal Affairs, Anti Money Laundering Unit, ICB Head
Office, Dhaka.
Mr. Gazi successfully participated in many seminars, workshops & training

programmes at home and abroad. Recently he has visited India for a training
programme on ‘Corporate Governance’ arranged by NIBM, Pune. He also holds Ex-
officio position of Chairman, Board of Directors of ICB Asset Management Company
Limited a subsidiary of ICB.

Mohammed Monirul Moula

Managing Director & CEO
Ex-Officio Director
Mohammed Monirul Moula, a veteran banker and dynamic leader has been appointed as the Managing
Director & CEO of Islami Bank Bangladesh Limited (IBBL) with effect from 01 January 2021. Prior
to assigning this appointment, he served as Additional Managing Director and Head of Corporate
Investment (Credit) Wing of the Bank. Earlier, he was head of a number of core wings, divisions, zones
and large scale portfolio handling branches of the Bank.
After joining IBBL as Probationary Officer on March 06, 1986, Mr. Moula gained extensive banking
experience and developed a wide range of expertise in almost all the fields of banking over the period
of 37 years. While playing the role of Head of Corporate Investment (Credit) Wing, he notably looked
after the affairs of Corporate Finance, Sustainable Finance, Credit Administration, Asset Management
and Credit Risk Management of the Bank. He also took the helm of Retail Investment Wing where his
deep concentration was on SME Finance, Retail, Consumer & Real Estate Investment (Finance). Mr.
Moula was also the Chairman of Investment (Credit) Committee, and Investment Risk Management
Committee as well.
Mr. Moula was born in a noble Muslim family at Cox’s Bazar District in 1963. He obtained BSS (Hons.)
in 1983 and MSS in Economics in 1984 from University of Chittagong. In the professional career
he was awarded prestigious certificate on ‘Domestic and International Factoring’ from Factors Chain
International (FCI), Netherlands. He is a Diplomaed Associate of the Institute of Bankers, Bangladesh.
Mr. Moula has attended a good number of professional training courses, programs, workshops, and
seminars at home and abroad including Switzerland, Belgium, Germany, India, Thailand, Bahrain,
Italy, Sri Lanka, KSA, Myanmar, Morocco, Malaysia, Indonesia and UAE.

DIRECTORS’
REPORT

Directors’ Report
The Board of Directors of Islami Bank Bangladesh Limited percent year-on-year to $ 2,824 in 2022, according to data of
is delighted to welcome you all to the 40thAnnual General Bangladesh Bureau of Statistics from $2,591.
Meeting of the Bank. It is a prestigious opportunity for us to
present the Directors’ Report along with the Audited Financial The government adopted precautionary measures and looks
Statements of the Bank for the year ended 31st December 2022 for ways to overcome economic troubles and meanwhile
and the Auditors’ Report thereon before you. The Board has confirmed a credit of $ 4.7 billion from IMF. This timely
reviewed the financial statements in order to ensure effective action was immensely needed for the sake of present situation
financial control, transparency and accuracy. The Board also to be under control.
likes to take the opportunity to highlight the operational
performance of the Bank briefly during the year 2022 in Global Banking
the context of the domestic and international economic and
banking scenario. The Ukraine conflict poses the biggest challenge to growth
since the global financial crisis of 2007. Slow growth and
Global Economy rise in interest rate has detrimental effect on banks. Slower
growth spells resulted in increasing bad loans. Rising interest
The world economy has gone through a number of
fluctuations and challenges over the year 2022. Geopolitical rates translated into losses in the bond market. The US and
and social tensions have escalated as poverty and inequality Canadian Financial sector performed better than the European
have increased. Economic risks have risen sharply as a result. banks, the world economy witnessed its first interest rate hike
Recession in financial conditions in most regions, Russia’s in 11 years which has gone through energy shocks more
invasion of Ukraine and the lingering pandemic all weigh intensely. In Asia Pacific, financial sectors are mostly exposed
heavily on last year’s outlook. Inflation in many countries to the global shocks so is confronting the worst effects.
has risen sharply, fueled by a combination of surging energy, Developing countries have been dealing with food and energy
food, and commodity prices, labor shortages and supply chain shortages which need to be achieved in a planned way.
disruptions. Public and private debt has reached new highs.
Nevertheless, the era of cheap money is over and the cost of
According to IMF, global growth of GDP witnessed slow funding from deposits or other forms of borrowing at least
trend. It declined from 6.0 percent in 2021 to 3.2 percent in for the foreseeable future. Proportion of operating revenues
2022 and heading to 2.7 percent in 2023.This is the weakest for US banks has been declining from a high of 43% in 2006
growth profile since 2001 except for the global financial to around 35% in 2022.The global crypto currency market
depression (2007) and the acute phase of pandemic. size was valued at $1.49 trillion in 2020 and reached $2.4
trillion in 2021 with a growth rate of 61% and shifted its gear
Global inflation was forecast to rise from 4.7 percent in 2021
to slower one than it used to be. So, the projected growth rate
to 8.8 percent in 2022 but the situation declined eventually.
is 12.8% from 2021 to 2030.
Whereas the projections are 6.5 percent in 2023 and to 4.1
percent by 2024. Upside inflation surprises have been most
widespread among advanced economies. National Banking
World Bank projection for the next two years, per-capita The banking sector passed the year 2022 through various
income growth in Emerging Markets and Developing crises that had great impact on the confidence level among
Economies (EMDEs) is expected to average only 2.8 %. the depositors. The news of dollar shortage spread panic and
worsened the situation. That might in these have its impact on
National Economy achieving the goals of SDG and becomes a middle income
country by 2031 and developed country by 2041.
The economy was recovering strongly from the pandemic
meanwhile the war in Ukraine posed a setback to the ongoing The total bank deposit of Bangladesh stood at Tk.14.89 trillion
recovery. A disturbance in the worldwide commodity market in December 2022 i.e 5.36 % higher over the previous year.
and sluggish economic activities by war induced supply chain While the year end advance position stood at TK.14.15 trillion
disruption was being observed. indicates the increase of 14.12% over the corresponding
period. To address the inflationary pressure, the Repo rate was
Despite that, Bangladesh has a strong track record of growth
and development, even in times of high global uncertainty. increased in September 25 basis points to 5.75% and in January
Bangladesh registered $465 billion gross domestic product 2023 again increased to 6% while the Reverse Repo rate was
(GDP) in 2021-22 fiscal year. A robust demographic dividend, also increased from 4% to 4.25 %. Yearlong Russian invasion
strong ready-made garment (RMG) exports, resilient has impacted on our Forex reserve that curtailed from $44.99
remittance inflows and stable macroeconomic conditions have billion to $ 32.69 billion within a calendar year. It imposed
supported rapid economic growth for the past two decades. extreme pressure on import bills throughout the year and also
set backs to open new LCs. Foreign Remittance inflow through
Inflation in Bangladesh hit a nine-year high of 7.92 percent the banking channel amounted $21 billion which is seventh in
due to increase in the prices of food products in the country. ranking in terms of country wise ranking as per World Bank
Despite these odds per capita income in Bangladesh rose by 9 but it marks $ 1 billion less compared to 2021.

Directors’ Report
Here the Central Bank came up with prudent action plan and Economic Outlook
executed. In total, the central bank sold$ 13 billion from the
Forex reserve to the market in the last 15 months to make Against this backdrop, global growth is forecast to slow to 1.7
undisturbed flow of international supply chain. percent in 2023 as per World Bank. This pace of growth would
be the third weakest in nearly three decades, overshadowed
Global Islamic Banking only by the global shutdown caused by the pandemic in 2020
and the global financial crisis in 2007. Growth projections
Global Islamic finance industry has expanded 10%-12% in have been downgraded for almost all advanced economies
2021-2022. The expansion of Islamic banking assets in some and about two-thirds of Emerging Countries in 2023 and for
Gulf Cooperation Council (GCC) countries, Malaysia, and about half of all countries in 2024.
Turkey and sukuk issuances exceeding maturities explain Global business is also expected to slow sharply alongside global
this expected performance. Islamic finance started to expand growth. This suggests that the negative shocks of the past three
rapidly since 2020 with total assets increasing 10.6% despite years namely the pandemic, the invasion of Ukraine and the
the double shock from the COVID-19 pandemic and drop rapid increase in inflation and associated tightening of monetary
of oil price. Because of strong investments in halal sectors, policy worldwide are having a lasting impact on economic
infrastructure, and Sukuk bonds, the worldwide Islamic prospects. In all, growths in advanced economies are forecasted
financial business is quickly expanding. The Global Islamic to slow from 2.5 percent in 2022 to 0.5 percent in 2023.
Finance Market was worth $ 2.2 trillion in 2021 and predicted
After softening to 4 percent in 2022, global trade growth is
to reach $3.2 trillion by 2024 also anticipated reaching the
expected to decelerate further to 1.6 percent in 2023, largely
valuation of $ 5.44 trillion by 2027 i.e is predicted to register reflecting weakening global demand.
growth of 10.2% during 2022-2027.Islamic banking is the
largest sector in the Islamic finance business, accounting for Energy prices are expected to ease in 2023 but remain higher
69% of the industry’s assets or $ 1.99 trillion. Commercial, than previously forecast, primarily reflecting an upward
wholesale, and other sorts of banks contribute to the sector’s revision to coal prices. Agricultural prices are projected to
decline 5 percent in 2023 after rising 13 percent in 2022,
success.
largely reflecting better global production prospects and
easing input costs, particularly for fertilizers.
National Islamic Banking
The government of Bangladesh set a target of achieving
Islamic banking has witnessed an impressive growth in recent 7.5% of GDP in 2023. Asian Development Bank projects
years in the country a strong public demand for interest that Bangladesh may achieve 6.6 per cent of GDP in 2023.
free financial transactions and a profit loss sharing (PLS) It has given such a prediction due to a decrease in local and
mechanism. Currently, the market share in terms of deposit international consumption, export and remittance income
of Islamic banks in Bangladesh accounted for 26% & the and slow pace of world economy. The World Bank projected
ratio stood at 28.50% regarding investment in the country’s Bangladesh’s economy in 2023 will go further by 0.9% to
banking sector at the end of fiscal year 2022 Islamic Financial 5.2%, due to a combination of factors including elevated
Services Industry (IFSI) Stability Report put Bangladesh in inflation, energy shortages and tightening of the monetary
the eighth place in top 15 countries having a more than 15% policy. Later they increased by 1 per cent to 6.2 percent. The
share in Islamic-banking assets in their total domestic money International Monetary Fund (IMF) has also revised economic
market. Till September 2022, 10 full-fledged Islamic banks growth projection further down to 5.5 per cent for the current
have been operating with 1605 branches in banking system. fiscal year 2023 but expected it to start rebounding from the
In addition, 23 Islamic banking branches of 11 conventional next year. The current account deficit which might rise to 4.2
commercial banks and 511 Islamic banking windows of 13 per cent in the next 2024 from that of 3.2 percent in 2023.
conventional commercial banks are also providing Islamic It is highly predicted by most economist, stakeholders
financial services in Bangladesh. The country’s first Sukuk and renowned research organizations that the economy of
or Islamic bond was issued in 2020. Bangladesh Bank, on Bangladesh is marching towards the goals of SDGs. For
behalf of the government, has issued the maiden sovereign instance, Bangladesh is on the right track to become a $1
investment Sukuk to raise Tk 80.00 billion for implementation trillion economy by 2040 as per Boston Consulting Group
of the safe water-supply project in the country. Two more (BCG). According to Centre for Economics and Business
Sukuk was also issued in the year before. The total amount of Research (CEBR) it will be the 34th largest economy in the
issued Sukuk reached BDT. 180 billion till the end of 2022. world by 2025 continuing to be the 2nd in South

Directors’ Report
39th Annual General Meeting
Corporate Profile Unique Features:

Islami Bank Bangladesh Limited [IBBL] (hereinafter referred Prohibition of interest (Riba)
to as “the Bank”) was established as a public limited banking As Riba is prohibited in the Holy Quran, the most
company in Bangladesh on the 13th March 1983 as the first
unique feature of IBBL is that its business functions/
Shari’ah based scheduled commercial bank in the South East
operations are completely free from interest.
Asia. Naturally, its modus operandi is substantially different
from those of other conventional commercial banks. Welfare-oriented Banking
The Bank conducts its business on the Shari’ah principles IBBL is the precursor of introducing welfare-oriented
of Mudaraba, Musharaka, Bai-Murabaha, Bai-Muajjal, Hire banking system by ensuring equity and justice in
Purchase under Shirkatul Melk, Bai-Salam, Bai-as-Sarf and all of its activities. Unlike conventional financial
Ujarah etc. There is a Shari’ah Supervisory Committee in the institutions, profit or wealth maximization has never
Bank which ensures that the activities of the Bank are being been among the prime objectives of IBBL. The Bank
conducted on the precepts of Islam. extends its services to individuals of all walks of life
with strong commitment in advancement and uplifting
The shares of the Bank are listed with both Dhaka Stock
economically disadvantaged segments.
Exchange (DSE) Limited and Chittagong Stock Exchange
(CSE) Limited. Authorized Capital of the Bank is Tk. Shari’ah Compliance
20,000.00 million and Paid-up Capital is Tk. 16,099.91
million having 26,388 shareholders as on 31st December Shariah Compliance is not just empty words. All of our
2022.The Bank carries out its business activities through banking activities are Shariah Compliant & IBBL practically
its Head Office in Dhaka, 16 Zonal Offices, 394 branches ensures 100% Shari’ah in daily banking operations.
including 73 Authorized Dealer (AD) branches, 228 Sub-
branches, 2694 Agents Outlet and 3 Off-shore Banking Units Focus on ‘Maqasid-al-Shari’ah
(OBUs) in Bangladesh. The Principal place of business is the IBBL not merely ensures shari’ah compliance but also focuses
Registered Office of the Bank situated at Islami Bank Tower, on Makasid-al-Shari’ah in all of its operational portfolios.
40, Dilkusha Commercial Area, Dhaka-1000, Bangladesh.

Directors’ Report
Donation to Prime Minister’s Relief Fund for the Shelter Project
Careful Evaluation of Investment Demand unbanked and underserved segment of population of the
IBBL is found to be deliberately careful in evaluating country.
applications for equity financing. Generally, the conventional Financial Inclusion and Sustainable Development
banks make lending after taking collaterals to avoid risk as
much as possible and don’t bother to go beyond ensuring Since its journey, IBBL has been working tirelessly for
the security of their principal and interest receipt. Unlike overall development by way of ensuring financial inclusion,
commercial banks, IBBL being able to maintain a built-in sustainable & inclusive growth as well as socio-economic
mechanism of risk sharing as such it cautiously evaluates each development of the country through introduction of modern
and every investment. & welfare oriented banking products & services including
financial literacy programs.
Mass Banking
In order to make banking facilities available for maximum Subsidiary Companies
number of people, IBBL appears to have been providing mass
banking instead of class banking. Islami Bank Securities Limited (IBSL)
IBSL is a subsidiary of Islami Bank Bangladesh Limited, is
Need-based Banking mainly engaged in providing Stock Broker & Stock Dealer
In line with following prioritization of need in financing, services in Dhaka Stock Exchange Ltd(DSE) and Chittagong
IBBL seldom works to fulfil the need of few people rather Stock Exchange Ltd(CSE). IBSL was incorporated on March
focuses on the requirement of the real needs of the common 22, 2010 as a public limited company under the Companies
people. Thus, IBBL strives to substitute the ‘Greed-based Act 1994 with a paid-up capital of Tk.2,700.00 million
Banking’ through establishing ‘Need-based Banking’. against authorized capital of Tk.5,000.00 million. The main
objectives of the company are to engage in business of
Socially and Environmentally Desirable Investments: buying, selling and dealings in shares, stocks, bonds and other
IBBL, by virtue of its adherence to Shari’ah and its ancillary operations related to capital market. Presently IBSL
commitment to ensure welfare, does not invest in socially has been operating with Head office, one (01) Branch Office,
and environmentally undesirable projects even though the three (03) Extension of Head office, and two (02) digital
projects seem to be financially viable and profitable. booths. In addition to the excellent Brokerage Services,
IBSL securing 1st position in the year 2019 to 2022 in a row
Widening Network to Address Unbanked Population based on the transaction volume of Dhaka Stock Exchange
IBBL is continuously pursuing for widening its network Ltd (DSE). IBSL is one of the largest corporate entities
by maximizing the opening of new branches to reach the operating in Bangladesh capital market which is providing

Directors’ Report
Blanket Donation to the Prime Minister’s Relief Fund
complete Shariah based investment solutions to the investors Offshore Banking Units
through highly dedicated professional manpower since the
commencement of its business. The operations of Off-shore Banking Units (OBU) of the Bank
were commenced on January 4, 2011 as per the approval of
Islami Bank Capital Management Limited (IBCML) Bangladesh Bank. The Off-Shore Banking Units (OBU) of
the Bank are located at
Islami Bank Capital Management Limited (IBCML) was
incorporated on the 01 April 2010 under the Companies Act  Head Office Complex Branch, Dhaka
1994 as a Public Limited Company with Authorized Capital  Uttara Branch, Dhaka and
of Tk. 1,000.00 million &Paid-Up Capital of Tk. 300.00  Agrabad Branch, Chattogram.
million divided by 3,00,000 (three lac) ordinary shares of Tk.
1,000/- each. The Company has obtained Merchant Banker
National Membership
Registration Certificate No. MB-95/2019 dated March 31, a. Bangladesh Institute of Bank Management (BIBM)
2019 from Bangladesh Securities and Exchange Commission b. The Institute of Bankers Bangladesh (IBB)
and started its merchant banking business from 30th September
c. Bangladesh Association of Banks(BAB)
2019 and obtained Depository Participant (DP) License on 3rd
d. Bangladesh Foreign Exchange Dealers’ Association
July, 2020.
(BAFEDA)
The main objectives of the company areachieving long term e. Bangladesh Association of Public Listed Companies
(BAPLC)
capital appreciation by means of judicious investing in the
capital market,delivering superior quality of services to all f. Central Shari’ah Board for Islamic Banks in Bangladesh
(CSBIBB)
the investors, tailoring the need-bases services for the client
through conducting an in-depth study, generating superior g. Islamic Banks Consultative Forum (IBCF)
returns for the clients by designing and delivering innovative h. Dhaka Chamber of Commerce & Industry (DCCI)
investment products, acquiring the quality to outperform in i. Dhaka Stock Exchange Limited (DSE)
delivering the results beyond the expectation and providing j. Chattogram Stock Exchange Limited (CSE)
solutions to business problems through exploring innovative k. Federation of Bangladesh Chambers of Commerce and
ideas and opportunities. Industry (FBCCI)
l. Bangladesh Chamber of Industries (BCI)

Directors’ Report
International Membership strong market position, which has made us immune from
adverse market competition.
a. Accounting and Auditing Organizations for Islamic
Financial Institutions (AAOIFI), Manama, Bahrain and · Switching cost: The switching cost is very low due to
has become member of its Board of Trustees. a high concentration of service providers. The risk is
mitigated by strong bondage with clients as well as
b. Islamic Financial Services Board (IFSB), Kuala Lumpur,
providing wide variety of products and services.
Malaysia.
c. General Council for Islamic Banks and Financial · Quality differentiation: IBBL belongs to among the top
Institutions (CIBAFI), Manama, Bahrain quality of service providers as such there are few banks
comparable in terms of service quality;
d. International Islamic Financial Market (IIFM) Manama,
Bahrain · Customer loyalty: Historically, customers of IBBL are
e. International Islamic Centre for Reconciliation and reasonably loyal. However, strong bondage with the
Arbitration (IICRA) clientele base has been established through frequent
client get-together and addressing the client’s specific
f. International Chamber of Commerce Bangladesh Limited
need to minimize such risk.
(ICC-Bangladesh)
g. American Chamber of Commerce in Bangladesh · Technological Adoption: IBBL develops different new
(AmCham) financial technologies based services like Cellfin, Fintech
etc. to ensure smooth and reliable services to customers.
IBBL’s Equity Investment
Threat of new entrants
a. Central Depository Bangladesh Limited (CDBL)
A number of new banks have already entered in the financial
b. Karmasangsthan Bank (Employment Bank)
services industry over the last couple of years. The possibility
c. Bangladesh Shipping Corporation (BSC) of new entrants, intensifying competition further, cannot be
d. Bangladesh Aroma Tea Ltd. ruled out although the new entrants will less likely to affect
the operation of the Banks in view of the strong market image
e. Investment in different listed company’s shares. and branding.
f. Mudaraba Subordinated Debts of Private Islami Banks
g. Mudaraba Perphetual Bonds of Private Islami Banks Sensitivity of clients
h. Sponsorship in Mutual Funds. Customers typically enjoys a high power in the equation since
big corporate tend to be extremely rate sensitive. The issue is
Financial Review being addressed by customized handling as well as relationship
with the clients. The bank is also focusing on SMEs clients to
Operating in the financial services industry, IBBL is exposed gradually reduce dependency on large investment clients.
to several risks both internally as well as externally, some of
which are beyond its control. However, in line with more than Threat of substitute products
three decades of rich experience, we have witnessed several
industry cycles and hence have developed and fine-tuned risk Low threat is prevailing within the banking industry in terms
identification and mitigation framework that protects us from of substitute products. However in some segments, there exists
adverse risks, enhances operating viability and ensures the a high threat of substitute products. The issue is handled by
sustainability of our business. continuous research and development on new and innovative
product line.
We have provided a detailed analysis of the competitive
intensity that we face. While operating in Bangladesh’s Business Model of IBBL
dynamic financial services industry, we are responsive to
minimize the impact of these risks on our business model to IBBL is a matured bank with more than three decades of
the extent possible. operation. The bank’s business model has been structured
around meeting customer needs both on the investment and
Competitive Contention deposit front and meeting their growth expectations on the
basis of trust and respect.
· Number of competitors: The Bangladeshi banking
industry is marked by high levels of competition The Bank has consistently created value for its stakeholders.
with as many as 60 schedule banks working in the Leading the critical anchors of fostering the sense of
industry. However, due to our strategic positioning of governance and transparency, IBBL presents integrated
differentiation in the industry we have already created a reporting of its business model that include inputs, business

Directors’ Report
Annual Business Development Conference
activities, outputs and outcomes. A brief description of each Financial Capital

of these is delineated below.
 The Bank enjoys a healthy CRR and SLR that are much
Inputs above the limits stipulated by the Bangladesh Bank.
 IBBL enjoys 40 years of experience in the banking  It has strong eligible capital to address the risk of the
business. Bank.
 During this long journey, the bank has witnessed several
market cycles and created a business model that is not Information Technology
only resilient but also risk absorbent.
· IBBL possesses a robust in-house IT backbone that
 The Bank’s dedicated human resources base is reflected in enhances business sustainability in terms of facilitating
the very low turnover rate of its employees. quick decision making.
Resources · A strong IT infrastructure also results in enhancing
 One of the bank’s significant competitive advantages transparency, helps detect bad accounts early and also
comprises of its robust and dedicated human resource enables environmental preservation through the optimized
pool. use of paper etc.
 Constant productivity enhancement programs have
resulted in a better output from employees. Continuous
training both at home and abroad has excelled the
professional excellence of the human resources base of
the Bank.
 The Bank possesses an experienced management team
that is continually appraising and analyzing key trends of
business.

Directors’ Report
Inauguration of Campaign on Financial Excellence
Product and Business Exposure  General Investment increased by 22.68% in 2022 from
that of previous year.
· The Bank offers a wide range of investment products
across corporate and SME clients and for retail customers  Classified investment to general investment reduced to
that enable it to meet the tailor-made requirements of the 3.70% in 2022 from 3.31% in 2021.
clients.
In summation, at IBBL, our business model is anchored on
· On the deposit side, IBBL offers a wide range of long and the following areas:
medium term savings products that enables it to meet the
 Welfare orientation
financial security and liquidity goals of consumers.
 Diversification focused
· IBBL also operates two wholly-owned subsidiaries
(Islami Bank Capital Management Ltd. and Islami Bank  Financial inclusion driven both in deposit and investment
Securities Ltd.) that offer a vast range of capital market  Risk mitigation
products and solutions.
 Customer focused
Outputs  Balanced and consolidated growth
The Bank possesses a considerable product line described  Technologically proactive
later in the report.
 Financially well-capitalized
Outcomes  Highly compliant
Some of the company’s key financial and non-financial  Environmental friendly
outcomes include the following:
 Total assets have grown by 12.35% in 2022 from 2021.
 Deposit has grown by 2.06% in 2022 from 2021.

Directors’ Report
Business Review
IBBL mobilized Tk. 1,410,445 million Deposits from 18,383,517 Depositors and deployed Tk. 1,461,365 million as General
Investment into 983,996 accounts up to 31st December 2022. In the year 2022, total income of the Bank was Tk. 106,606.17
million and total expenditure was Tk. 100,682.72 million resulting in profit of Tk. 5,923.45. The Board of Directors of the Bank
has recommended 10% cash Dividend to the shareholders for the year 2022.
Depositors & Deposit Trend in last 05 (five) years
20,000,000
18,000,000
16,000,000
18,383,517
Deposit Accounts Trend
14,000,000
15,477,340
13,843,053
12,000,0000
12,811,267
10,000,000
11,374,419
8,000,000
6,000,000
4,000,000
2,000,000
2018 2019 2020 2021 2022

No. of Depositors 11,374,419 12,811,267 13,843,053 15,477,340 18,383,517
Growth% 10.83% 12.63% 8.05% 11.81% 18.78%
1,600,000
1,400,000
1,200,000 1,410,445
1,381,980
Deposit Trend in Milion
1,179,691
1,000,000
946,217
800,000
822,573
600,000
400,000
200,000
-
2018 2019 2020 2021 2022
Deposit 822,573 949,217 1,179,691 1,381,980 1,410,445
Growth% 20.73% 15.03% 24.67% 17.15% 2.06%

Directors’ Report
Deposit Mix, Final Rate & Weightage

Deposit (million
Sl. Final Rate (%) Deposit Mix (%)
Types of Deposits Weightage Taka)
No.
2022 2021 2022 2021 2022 2021
1 2 3 4 5 6 7 9 10
A
1 Mudaraba Savings Account (MSA) 0.62 2.92 2.93 437,787 463,655 31.08% 33.55%
2 Mudaraba Term Deposits 513,310
2a Mudaraba Term Deposits (For Individuals) 489,073 36.39% 35.39%
i 36 Months 1.10 5.85 5.28
ii 24 Months 1.07 5.82 5.18
iii 12 Months 1.05 5.80 5.11
iv 300 days 1.045 5.78 5.09
v 200 days 1.04 5.77 5.04
vi 06 Months 1.03 5.77 5.02
vii 100 days 1.01 5.76 4.97
viii 03 Months 1.00 5.76 4.95
ix 01 Month 0.82 3.87 3.88
2b Mudaraba Term Deposits (For Corporate)
i 36 Months 1.10 5.19 5.28
ii 24 Months 1.07 5.05 5.18
iii 12 Months 1.05 4.95 5.11
iv 300 days 1.045 4.93 5.09
v 200 days 1.04 4.90 5.04
vi 06 Months 1.03 4.86 5.02
vii 100 days 1.01 4.76 4.97
viii 03 Months 1.00 4.72 4.95
ix 01 Month 0.82 3.87 3.88
3 Mudaraba Special Savings 154,060 152,249 10.93% 11.02%
(Pension) Scheme (MSS)
3.1 10 years Term 1.25 5.89 5.91
3.2 5 years Term 1.10 5.19 5.25
3.3 3 years Term 1.08 5.09 5.10
4 Mudaraba Education Savings Scheme 34
4.1 15 years Term 1.30 6.13
4.2 10 years Term 1.25 5.89
4.3 5 years Term 1.10 5.19
4.5 3 years Term 1.08 5.09
5 Mudaraba Expatriate Housing 47
Deposit Scheme
5.1 15 years Term 1.30 6.13
5.2 10 years Term 1.25 5.89
5.3 5 years Term 1.10 5.19
5.4 3 years Term 1.08 5.09
6 Mudaraba Monthly Profit Deposits 58,170 56,258 4.12% 4.07%
Scheme(MMPDS)
6.1 5 years Term 1.18 6.25 6.54
6.2 3 years Term 1.10 5.75 6.04
7 Mudaraba Senior Citizen Monthly 1,694 0.12%
Deposit Scheme
7.1 5 years Term 1.20 6.30
7.2 3 years Term 1.12 5.80
7.3 1 years Term 1.05 4.95
8 Mudaraba Savings Bond 9,537 13,233 0.68% 0.96%

Directors’ Report
8.1 8 years Term 1.25 5.89 5.91
8.2 5 years Term 1.10 5.28 5.29
9 Mudaraba Special Notice Deposits 0.50 2.36 2.36 17,597 19,783 1.25% 1.43%
(MSND)
10 Mudaraba Hajj Savings 5,679 5,123 0.40% 0.37%
10.1 Above 10 years Term 1.30 6.13 6.18
10.2 Upto 10 years Term 1.25 5.89 5.91
11 Mudaraba NRB Savings Bond 659 738 0.05% 0.05%
11.1 10 years Term 1.30 6.13 6.14
11.2 5 years Term 1.15 5.42 5.43
12 Mudaraba Farmers Savings 0.75 3.54 3.54 2,114 2,109 0.15% 0.15%
13 Mudaraba Waqf Cash Deposit 1.35 6.37 6.38 1,984 1,675 0.14% 0.12%
14 Mudaraba Muhor Savings 833 827 0.06% 0.06%
14.1 10 years Term 1.25 5.89 5.91
14.2 5 years Term 1.10 5.19 5.20
15 Mudaraba Bibaho Savings 137 -
15.1 5 years Term 1.10 5.25 5.21
15.2 3 years Term 1.08 5.13 5.10
16 Mudaraba Priority Savings 0.95 4.48 4.81 10 5,913 0.00% 0.43%
17 Students Mudaraba Savings 0.62 2.92 2.93 5,140 4,661 0.36% 0.34%
18 Mudaraba Upahar Deposit Shceme 0.62 2.92 2.93 25 20 0.00% 0.00%
(MUDS)
19 Mudaraba mCash Deposit Scheme 0.50 2.36 2.36 1,366 180 0.10%
20 Mudaraba Industrial Employees 0.62 2.92 2.93 322 293 0.02% 0.02%
Savings
21 Mudaraba Foreign Currency 0.75 1.86 1.55 37,485 32,201 2.66% 2.33%
Deposits
22 Mudaraba Payroll Account 0.90 2.92 2.93 193 125 0.01% 0.01%
23 Mudaraba Perpetual Bond 1.25 6.89 6.91
24 Mudaraba subordinate Bond 1.03 4.86 4.94
B
25 Al Wadeeah Current Account 73,719 72,687 5.23% 5.26%
(AWCA)
26 Bills Payable 10,289 8,117 0.73% 0.59%
27 Cost Free Foreign Currency 16,199 10,510 1.15% 0.76%
Deposits
28 Other Cost Free Deposits 61,895.57 42,730 4.39% 3.09%
Total 1,410,445 1,381,980 100.00% 100.00%
1% Deposit Mix- 2022 Mudaraba Savings Deposit

4% 1% 4% Mudaraba Term Deposit
11%
Mudaraba Special Savings
11%
31%
Cost free Deposit
Mudaraba Monthly Profit
DepositMudaraba Savings Bond

36%
Mudaraba Special Notice Deposit
Other Deposit

Directors’ Report
Ready-made Garments Industry financed by IBBL
General Investments
General Investment of IBBL has been experiencing a steady but remarkable growth over the couple of years. General Investment of the
Bank stood at Tk.1,461,365 million as on 31st December 2022 with net increase of Tk.270,192 million witnessing 22.68% growth over 31st
December-2021 despite further challenges of the second wave of Covid-19 pandemic on the banking sector since middle of the year. The
trend of general investment for last 5-years is shown in the following graph:
Trend of General Investment

Trends of Investment & Growth
1,461,365
24% 1,600,000
1,191,173
20% 1,400,000
899,013 1,035,288 1,200,000
16%
805,760 1,000,000
12% 800,000
8% 600,000
400,000
4%
200,000
0% -
31.12.2018 31.12.2019 31.12.2020 31.12.2021 31.12.2022
Gen. Inv. (million Tk.) 805,760 899,013 1,035,288 1,191,173 1,461,365
Growth% 13.37% 11.57% 15.16% 15.06% 22.68%

Directors’ Report
IBBL received South Asian Business Excellence Award 2022
Sector-wise Investment Position

Bangladesh is predominantly farming based economy. Yet the industrial sector in Bangladesh makes a huge contributor to the country’s
economic growth. Investing 52.84% of its resources in industrial sector, IBBL has been contributing in country’s industrialization
process and has created a huge employment. The sector-wise investment data are shown in the following table and graph:
(Amount in million Tk.)
2022 2021
Sl.
Sector Amount % to Total Amount % to Total
No.
Outstanding Investment Outstanding Investment
1 Industrial 772,148 52.84% 634,313 53.25%
2 Trade & Commerce 478,873 32.77% 377,472 31.69%
3 Real Estate 84,824 5.80% 78,280 6.57%
4 Consumer 38,262 2.62% 31,501 2.64%
5 Agriculture 46,983 3.22% 35,589 2.99%
6 Transport 9,358 0.64% 9,551 0.80%
7 Construction 6,918 0.47% 6,038 0.51%
8 Others 23,999 1.64% 18,429 1.55%
Total 1,461,365 100% 1,191,173 100%
3.22% 2.99% 0.51% 0.80%

0.64% 0.47% 2.64%
2.62% 1.55%
1.64% 6.57%
5.80% Industrial Industrial
Trade & Commerce Trade & Commerce
Real Extate Real Extate
Consumer 31.69% 53.25% Consumer
32.77% 52.84% Agriculture Agriculture
Transport Transport
Construction Construction
Others Others
Sector Wise Investment-2022 Sector Wise Investment-2021

Directors’ Report
Mode-wise Investment
The essence of IBBL is to provide banking services under shariah principles. IBBL is providing banking services through the
following shariah based modes:
Investment Mode 31.12.2022 % to Total Investment 31.12.2021 % to Total Investment
Bai-Murabaha 884,038 60.49% 765,167 64.24%
HPSM 252,094 17.25% 236,818 19.88%
Bai-Muajjal 90,626 6.20% 77,957 6.54%
Quard 42,650 2.92% 35,958 3.02%
Bai-Salam 19,016 1.30% 16,583 1.39%
Bills Purchase & Negotiation 165,976 11.36% 52,338 4.39%
Mudaraba 5,000 0.34% 5,000 0.42%
Musharaka 188 0.01% 188 0.02%
Khidmah Credit Card 1,777 0.13% 1,164 0.10%
Grand Total 1,461,365 100% 1,191,173 100%
Mode Wise Investment-2022 Mode Wise Investment-2021

Bai Murabaha Bai Murabaha
HPSM HPSM
Bai Muajjal Bai Muajjal
60.49% 17.25% Quard 64.24% 19.88% Quard
6.54%
Bai Salam Bai Salam
6.20%
Bills Purchage & Bills Purchage &

Negotiotion Negotiotion
3.02%
1.39%
Mudaraba 4.39% Mudaraba
0.01%
2.92%
0.42%
1.30%
11.36%
0.02%
0.13%
Musharaka Musharaka
0.34%
Khidma Credit Card Khidma Credit Card
Division wise Investment Position

IBBL cherishes its long dreamt dreams of equitable development of the country. IBBL has been deploying its investment
equitably througout the country gradually. Division-wise Investment data are
presented in the following table as well as chart:
Position as on 2022 Position as on 2021
Sl. No. Division
Amount % Amount %
1 Dhaka 675,587 46.23% 551,990 46.34%
2 Chattogram 427,683 29.27% 378,912 31.81%
3 Rajshahi 168,202 11.51% 109,707 9.21%
4 Khulna 85,151 5.83% 65,634 5.51%
5 Rangpur 45,945 3.14% 37,045 3.11%
6 Sylhet 18,667 1.28% 15,962 1.34%
7 Barishal 19,294 1.32% 15,723 1.32%
8 Mymensingh 20,836 1.43% 16,200 1.36%
Total 1,461,365 100% 1,191,173 100%

Directors’ Report
Division wise Investment 2022 Division wise Investment 2021
1% 1% 2%
3%
1% 2% Dhaka 3% 1%
6% 6% Dhaka
Chittagong
Rajshahi Chittagong
12% Khulan 9% Rajshahi
46% 46%
Rangpur Khulan
29% Sylhet 32% Rangpur
Sylhet
Five Year Business Plan (2022–2026) Housing & Construction

IBBL has provided Housing facility of Tk. 91,485 million at
Islami Bank Bangladesh Limited has formulated Five Year
individual level and Real Estate developers which is 6.26%
Business Plan (2022–2026). The investment plan has been
of Banks total Investment in December 2022. The same was
formulate keeping in view the national economic priorities
Tk.76,261 million & 6.40% of Bank’s total Investment in 2021
and diversification of the investment portfolios by size,
sector, geographical area, economic purpose, securities, Agro-Based Industry
administrative divisions and modes. Being primarily an agrarian economy, the agriculture sector
poses enormous potential for the development and growth of
Investment in Industrial Sector the agro-based industry in Bangladesh. IBBL also financing
Industrial development of the country has always been the to sectors like Automatic Rice Mills, Flour Mills, Edible Oil
priority of IBBL. The Bank has deployed 52.84% of its total Mills, Jute Mills, Fishery, Poultry & Dairy, Salt, Sugar, Food
and Beverage, Cold Storage, Fertilizer, Oil and Rice Bran etc.
investment in industrial sector including export oriented
IBBL financed Tk.229,259 million in agro-based industries
textile and garment industries. Total investment in industrial which is 15.69% of total Investment of the Bank.
sector (including SME) stood at Tk.772,148 million as on
31st December 2022 as against Tk. 634,313 million as on 31st Electricity & Power
December 2021. Electricity & power are the driven force of economy of any
country. For the welfare of the country IBBL has been exerting
Ready-made Garments its efforts to produce more power & electricity as well as
environment friendly power generation. Total investment in
IBBL was the pioneer in financing garment industries in the Electricity & Power sector stood at Tk.45,987 million.
early Eighty’s. Later on, IBBL also financed in the backward
Transport
linkage industries. Most of the leading export-oriented
To develop country’s communication system IBBL has made
garment industries of the country received finance from private
investment in road, water and air transport of Tk.9,358 million
sector especially from IBBL. Gradually they developed their that contributes the highest among the banks of Bangladesh.
industries into a large one. At the end of December 2022, the IBBL financed Tk. 1,411 million to Filling/CNG stations.
outstanding investment in this sector is Tk.75,519 million
which is 9.78% of total Industry of Tk.772,147 million. Steel Sector
For infrastructure development IBBL has financed Tk.109,168
Textile million in the Metal sector specially Iron, Steel and others
A good number of spinning mills, weaving mills, dyeing- which is 7.47% of total investment of the Bank in 2022. At
finishing mills of textile sector have been established with the end of 2021, the Outstanding in this sector was Tk.67,748
million which was 5.69% of Bank’s total Investment.
the Investment of IBBL. Most of these mills are set-up with
up to date automated brand new machinery. This contributed Pharmaceuticals & Health Care
immensely toward local value addition in RMG. As on
To strengthen Medicare facilities & develop health sector,
31.12.2022, the outstanding balance of this sector is 20.62%
IBBL invested Tk.4,518 million in Pharmaceutical industries.
of total Industry. Besides these industries, IBBL financed Tk.7,298 million
among Hospital, Clinic, Pathological center through-out the
country under service industries.

Directors’ Report
Steel Industry financed by IBBL
Industrial Sub-Sector wise Investment

Sl. % of total Industrial % of total Industrial
Industrial Sub-Sector 2022 2021
No. Investment Investment
1 Textile 159,189 20.62% 139,118 21.93%
2 Service industries 60,072 7.78% 59,309 9.35%
3 RMG 75,519 9.78% 70,458 11.11%
4 Cement and ceramic industries 30,764 3.98% 25,105 3.96%
5 Chemical, fertilizer, etc. 23,008 2.98% 21,049 3.32%
6 Ship building industries 7,342 0.95% 8,108 1.28%
7 Food and allied industries 69,070 8.95% 16,927 2.67%
8 Pharmaceutical industries 4,518 0.59% 3,838 0.61%
9 Ship breaking industries 6,491 0.84% 6,065 0.96%
10 Power and gas 45,987 5.96% 7,652 1.21%
11 Other manufacturing or extractive industries 209,073 27.08% 191,061 30.12%
12 Others 81,115 10.50% 85,623 13.48%
Total 772,148 100% 634,313 100%
Welfare Oriented Investment Schemes  Car Investment Scheme

The prime motto of IBBL is to ensure the welfare as well as  Investment Scheme for Doctors
development of people of all walks. In addition to the usual  Small Business Investment Scheme
investment operations, IBBL has aimed at fulfilling finance  Agricultural Implements Investment Scheme
needs of different segments of people particularly the under  Micro-Industries Investment Scheme
privileged downtrodden and neglected section of population  Rural Housing Investment Scheme
as part of bank’s welfare mission under 16 Special Investment  Women Entrepreneurs Investment Scheme
Schemes. To improve living standard of these people, some  NRB Investment Scheme
welfare oriented special investment schemes as under have  Cluster Investment Scheme
been undertaken:  Freelancer Investment Scheme
 Household Durable Investment Scheme  Rural Transport Investment Scheme’ (RTIS)
 Housing Investment Program(HIP)  Work Order Financing Scheme
 Housing Investment Program for Govt. Employees (HIPGE)  Light Engineering Investment Scheme
 Transport Investment Scheme  Semi-Pucca Housing Investment Scheme
 Education Investment Scheme for Students (EISS)

Directors’ Report
Jute Products Factory financed by IBBL
Scheme-wise Investment Outstanding

(Amount in million Taka)
31.12.2022 31.12.2021
SL.
Special Scheme % to Special % to Gen. % to Special % to Gen.
No. Amount Amount
Schemes Investment Schemes Investment
1 RDS 53,881 31.25% 3.69% 45,824 29.43% 3.85%
2 HIP 30,916 17.93% 2.12% 27,595 17.72% 2.32%
3 SHBIS 28,404 16.47% 1.94% 27,690 17.79% 2.32%
4 WEIS 9,549 5.54% 0.65% 9,156 5.88% 0.77%
5 Transport (TIS) 7,423 4.31% 0.51% 7,606 4.89% 0.64%
6 RE (Developers) 19,780 11.47% 1.35% 19,149 12.30% 1.61%
7 AIIS 9,057 5.25% 0.62% 8,152 5.24% 0.68%
8 SBIS 6,171 3.58% 0.42% 5,221 3.35% 0.44%
9 PGNBP 1,566 0.91% 0.11% 1,767 1.13% 0.15%
10 HDS 2,540 1.47% 0.17% 2,190 1.41% 0.18%
11 SHDS 2,177 1.26% 0.15% 1,075 0.69% 0.09%
12 CIS 241 0.14% 0.02% 182 0.12% 0.02%
13 HBIS 64 0.04% 0.00% 60 0.04% 0.01%
14 ISD 27 0.02% 0.00% 18 0.01% 0.00%
15 MIIS 4 0.00% 0.00% 1 0.00% 0.00%
16 HIPGE 546 0.32% 0.04% - - -
17 Shopno Kutir 74 0.04% 0.01% - - -
18 EISS 1 0.00% 0.00% - - -
Total 172,422 100% 11.80% 155,686 100% 13.07%

Directors’ Report
CMSME Investment
Bangladesh Government considers Cottage, Micro, Small ii. This sector requires lower energy supply, lower
and Medium Enterprise (CMSME) as the “thrust sector” infrastructure facilities and imposes less environmental
for poverty alleviation, employment generation, sustainable risk.
industrialization and overall development of citizen’s living iii. Asian Development Bank (ADB) reports that SMEs
standard. Since CMSME covers numbers of activity under contribute about 25% to Bangladesh’s GDP and have
manufacturing, service and trading sub-sectors, it contributes the potential to contribute more. It also contributes 7.8%
in employment of millions of people across the country. acceleration in export growth, 40% of the manufacturing
Islami Bank Bangladesh Limited (IBBL), being the country’s output.
biggest bank, has given due importance into the sector
iv. ADB also reports that SMEs in Bangladesh account for
by taking effective initiatives for significant growth of its
70%-80% of non-agriculture employment. It includes
CMSME investment portfolio.
enterprises up to 100 workers – employing a total of
IBBL continues its efforts to diversify CMSME investment 31 million people – equivalent to 40% of the country’s
portfolio by size, sector, economic purpose and geographical population aged 15 years and above.
location.
Key Performances of CMSME Investment
CMSME Contribution towards Economic
Development CMSME Investment of the Bank as on 31.12.2022 was
Tk.33,216.56 Crore which was Tk.26,366.00 Crore in 2021
i. CMSME sector helps alleviate poverty, engages local achieving 25.98% growth. This amount shares 24.13% of
workforces, increase income level of rural people, produce IBBL’s total investment portfolio and 10.92% of CMSME
import substitute and promote agro-industrial linkage investment in the banking industry.
across the country.
a. General Investment & CMSME Investment of IBBL at a Glance

(Amount in crore BDT)
Growth Growth
Year 2018 2019 2020 2021 2022
(%) (%)
General Investment (Excluding bills) 76,436 86,625 97,981 113,767 16% 132,664 16.39%
CMSME Investment 20,026 20,759 24,684 26,366 5% 33,217 26.00%
CMSME Investment to General
26% 24% 25% 23% - 25% -
Investment
Total Number of CMSME clients 54,386 49,778 50,510 53,184 5% 61,295 15.25%
b. Sector-wise CMSME Investment of IBBL

(Amount in crore BDT)
Sector 2021 2022 Growth over 2021 Share (%)
Manufacturing 14,599 18,391.19 25.97 55.37
Service 2,093 2,636.42 25.96 7.94
Trading 9,675 12,188.95 25.98 36.69
Total 26,366 33,216.56 25.98 100
Women Entrepreneur 944 968.35 2.57 2.92

Directors’ Report
Knitting Industry financed by IBBL

COVID-19 Pandemic and Special Incentive iii. 3rd Phase (2022-2023): For the 3rd phase, IBBL has
been given target for Tk. 2,000 crore out of which
Packages for reviving CMSMEs Tk.51.16 crore has been disbursed among 164 clients till
Like other economic areas, COVID-19 pandemic severely hit 31.12.2022.
CMSME sector, the larger source of growth & employment, b. Credit Guarantee Scheme (CGS)
by disrupting national and international business networks,
supply chain and demand. The government announced several Under Stimulus package, IBBL has signed an agreement with
stimulus packages under different categories for industries as Bangladesh Bank for Credit Guarantee Scheme (CGS) for
well as CMSMEs to recover the economic crisis caused by the an amount of Tk.35.00 crore (for the year 2022). Meantime,
pandemic outbreak. IBBL received approval of Tk.9.30 crore against 12 clients
from Bangladesh Bank.
IBBL Performance under Special Incentive Packages
The role of CMSME is indispensable for overall economic
The Central Bank fixed up certain targets for the commercial development of a country particularly for developing countries
Banks under different incentive packages including COVID like Bangladesh. In order to emphasize CMSME investment,
stimulus. IBBL’s performances under the given targets are to run the functions smoothly and to strengthen the activities,
pointed below: three divisions viz. SMEID-I, II & III under RIW-I are
a. COVID-19 Stimulus Package working relentlessly. Further to work in a more pragmatic &
focused way, IBBL’s workforce of all tiers should come up
i. 1st Phase (2020-2021): Out of country’s total target of Tk.
with all out efforts for upgrading our CMSME position in the
20,000 Crore, IBBL’s target was Tk. 2,000 Crore against
days ahead.
which the bank invested Tk.1,734 crore to 5,236 clients.
IBBL achieved 86.68% of target against country’s total
achievement of 76.94% (Tk.15,387 crore). IBBL’s
market share in this stimulus was 11.27%.
ii. 2nd Phase (2021-2022): In the 2nd phase, IBBL was given
target of Tk. 2,250 crore out of which the bank disbursed
Tk. 1,903 crore among 6,169 clients. This time IBBL
achieved 84.58% of given target.

Directors’ Report
Mosquito net Industry financed by IBBL
Micro-Investment Activities under RDS & UPDS

Islami Bank Bangladesh Limited launched its microfinance program for the rural poor under the name and style of “Rural
Development Scheme (RDS)” in the year 1995 to address the needs of investment on agriculture and off farm activities. This
is to create opportunity for employment generation and raising income of the rural people with a view to reducing poverty. In
the meantime, RDS investment conducting through 462 operational units (329 no. of Branches, 6 no. of Sub-Branches & 127
no. of Agent Outlets) covering 30961 villages under 64 districts of the country.
The Bank launched another microfinance program namely “Urban Poor Development Scheme (UPDS)” in May 2012 for
extending micro-investment facilities for the urban poor. Among 329 no. of Branches, UPDS is being operated through 24
urban branches under Dhaka (North & South), Chattogram & Sylhet metropolitan areas.
Performance under the Schemes at a glance as on 31.12.2022

(Tk. in million)
Performance of RDS & UPDS
Sl Particulars
2021 2022 Increase/Decrease Growth
1 Operation unit 394 462 68 17%
2 Village 28,921 30,961 2,040 7%
3 Member 1,469,362 1,600,056 130,694 9%
4 Client 798,446 870,584 72,138 9%
5 Cumulative Disbursement 375,461.65 443,092.46 67,630.81 18%
6 Investment Outstanding 45,822.67 55,880.97 10,058.30 22%
7 Overdue 488.62 544.17 55.55 11%
8 Classified 306.06 299.16 (6.90) (2%)
9 % of recovery 98.93% 99.03% - -
10 Savings 14,041.05 15,513.05 1,472.00 10.48%
11 No. of RDS Employees 3,078 3,056 (22) (1%)

Directors’ Report
Overall expansion of RDS & UPDS in the last 5 years is shown in the following table:
Sl. Particulars 2018 2019 Growth 2020 Growth 2021 Growth 2022 Growth
01 Villages 21,992 24,626 12% 25,842 5% 28,921 12% 30,961 7%
02 Centres 30,112 33,059 10% 33,619 2% 36,816 10% 39,600 8%
03 Members 1,108,283 1,253,512 13% 1,323,705 6% 1,469,362 11% 1,600,056 9%
Deposit of RDS
(Tk. in million)
Type of Deposit 2018 2019 Growth 2020 Growth 2021 Growth 2022 Growth
MSA-RDS 7,664.28 8,458.62 10% 8,697.83 3% 9,782.86 12.47% 10,928.06 11.71%
MSS-RDS 2,800.62 3,393.63 21% 3,955.22 17% 4,258.19 7.66% 4,584.99 7.67%
Total Savings 10,464.90 11,852.25 13% 12,653.05 7% 14,041.05 10.97% 1,5513.05 10.48%
Investment Program
Growth of the Investment Client
Growth of the client under Micro-Investment (MI) and Micro-Enterprise Investment (MEI) of the schemes in the last 5 years
is shown below:
( Tk. in million)
01 MI Clients 5,37,824 5,93,235 10% 6,18,102 4% 7,05,912 14.21% 7,81,580 10.72%
02 MEI Clients 87,708 93,999 7% 89,388 (4%) 92,534 3.52% 89,004 (3.81%)
03 Total 625,532 687,234 10% 707,490 3% 798,446 12.86% 8,70,584 9%
Comparative Position of Client

1000000
870,584
900000 798,446
707,490
800000
687,234
700000 625,532
600000
500000
400000
300000
200000
100000
0 2018 2019 2020 2021 2022
Growth of investment
Cumulative disbursement among the beneficiaries was Tk.443,092.46 million up to December-2022 out of which outstanding
was Tk.55,880.97 million. A comparative position of growth of investment under Micro-investment (MI) and Micro Enterprise
Investment (MEI) of the schemes is shown in the following table:
01 Outstanding (MI) 16,812 19,169 14% 24,173 26% 29,538 22% 36,145.82 22%
02 Outstanding (MEI) 12,625 13,554 7% 13,594 -- 16,284 -- 19,735.15 21%
03 Total Outstanding 29,436 32,722 11% 37,767 15% 45,823 21% 55,880.97 22%
04 % MEI to total RDS portfolio 43% 41% -- 36% -- 36% -- 35% --

Directors’ Report
Pharmaceutical Industry financed by IBBL
Year-wise investment outstanding in graph (Last 5 Years)

120,000 55,881
100,000 45,823
37,767
80,000 32,722
29,436 19,735
60,000 16,284
13,554 13,594
40,000 12,625
20,000 36,146
24,173 29,538
0 16,812 19,169
2018 2019 2020 2021 2022
MI MEI Total
Sector-wise outstanding investment
Sector wise outstanding position as on 31.12.2022
14% 3% Crop
Live stock
33%
Fisheries (Pisciculture)
Rural Transport
Rural Housing
24% Off-Farm Activities
Agricultural Tools
6% 3% 17%

Directors’ Report
Non-financial (welfare) Programs
Performance of welfare activities at a glance during the Year 2022
(In million Tk.)
Sl. 2022 Cumulative (2012-2022)

Description
No Beneficiaries Amount Beneficiaries Amount
1 Education 17,494 27.26 443,169 781.65
2 Training 12,057 2.87 1,044,533 151.99
3 Health 22,403 25.20 360,723 317.00
4 Relief & Rehabilitation 4,080 75.79 101,343 477.28
5 Environment Protection 142,365 8.95 8,455,268 230.64
Grand Total 198,399 140.07 10,405,036 1,958.56
Agricultural Investment Activities

Agricultural activities are the most important issue in the world now days. The importance of agriculture in socio-economic
context of Bangladesh is immeasurable. The majority people of this country are directly or indirectly dependent on agricul-
ture. Agriculture is the largest employment sector in Bangladesh, at present making up 11.50% of GDP and employing about
40.60% of the work-forces. Currently, 2% of the world’s population lives in Bangladesh, while the amount of cultivable land is
only 0.22%. So its development becomes the major concerns of the country. Islami Bank Bangladesh Limited has been giving
due importance in Agriculture sector from its inception. As welfare oriented bank, IBBL strongly believes that development
of the country cannot imagined without the development of agriculture sector. Agricultural Investment activities are running
through its 310 Branches of the Bank smoothly. The agricultural sector plays a strategic role in improving the availability of
food and food security.
Performance of Agriculture Investment

(In million Tk.)
Sl. Particulars FY 2021-2022 FY 2022-2023 (Up to Dec. 2022)
1 IBBL target 19,710.00 23,000.00
2 Proportionate Target 19,710.00 11,500.00
3 Achievement 23,940.00 11,617.50
4 % of achievement against target/proportionate target 121% 101%
5 Clients under Agricultural Investment 145,729 56,015
6 Investment Outstanding 18,140.44 18,397.26
Sector wise disbursement for the FY 2022-2023 as on 31.12.2022

(In million Tk.)
SL No Sector No. of client Disbursement % on total disbursement
1 Crops 17,666 1,750.15 15.06
2 Fisheries 7,556 2,035.62 17.52
3 Livestock 17,151 6,079.61 52.33
4 Irri. Equipment 144 5.30 0.05
5 Agri. Equipment 169 30.60 0.26
6 Crop Storage 527 65.08 0.56
7 Others 12,802 1,651.13 14.21
Total 56,015 11,617.50 100%

Directors’ Report
Micro & SME Entrepreneur Conference
Market share of Agricultural Investment

There is no alternative to improve agricultural systems to ensure food, nutritional security and employment for Bangladesh’s
growing population. Emphasizing the issues, various initiatives have been taken by the government; as a result, the country has
become self-sufficient in food grain production. Besides, Bangladesh’s progress in fisheries, livestock, and vegetable and fruit
production has risen to an enviable position before the world today. In the last 12 years, cumulative investment of IBBL in ag-
riculture sector was Tk.1, 50,379.20 million which was distributed among 13, 50,101 clients. IBBL market share in agricultural
investment was 8.30% in the financial year 2021-2022.
Stimulus Package performance
(In Crore Tk.)
Refinance Allotment of Disbursed Number of % of
Stimulus Scheme
Schemes Amount fund for IBBL amount Client achievement
ACD Circular-01, date 13.04.2020 5,000.00 450.00 4,90.00 21,256 109%*
ACD Circular-02, date 27.04.2020 -- -- 141.74 18,542 --
ACD Circular-02, date 14.09.2021 3,000.00 438.00 451.00 14,837 103%
Existing Stimulus Refinance Scheme

(In Crore Tk.)
Refinance Sanctioned
Stimulus Allotment of Number of
Name of the Scheme Schemes amount (up to
Refinance Scheme fund for IBBL client
Amount Dec, 2022)
Special refinance scheme for
ACD Circular-05,
increasing wheat and maize 1,000.00 10.00 825 10.29
25.08.2022
production
Refinance scheme for agri-
ACD Circular-07,
culture sector to ensure food 5,000.00 Under Process -- --
17.11.2022
security
Import dependent crops

Bangladesh Bank has introduced 4% concessional profit rate scheme in some import dependent crops like Pulse, Oil seed,
Spices & Maize from the FY 2011-12. In the FY 2022-2023, disbursement target of our Bank against Import dependent crops is
Tk.115.00 million. The achievement in IBBL in import dependent crops till December-2022 is near about to the proportionate
target of 57.50 million.

Directors’ Report
Agent Banking Operation

Over the few years, Bangladesh has become the pioneer in Geographical Coverage
financial inclusion with its recent strides towards ‘Innovative At the end of the year 2022, out of total 2,694 outlets,
Bangladesh’ from ‘Digital Bangladesh’ under the development 2,514 (93%) outlets are in rural and 180 (7%) outlets are
trajectory of National Financial Inclusion Strategy (NFIS) of in urban area covering all the 64 districts. By this time,
the country. This unprecedented success has been possible IBBL could extend its network to 469 Upazillas of the
because of the government’s comprehensive priorities country out of total 492 through establishing agent outlets.
in increasing the scope of access for all individuals and
enterprises to quality financial products and services through IBBL Share In Country
harnessing the transformative power of financial inclusion.
As a role model for economic development, Bangladesh has
Agent Banking Operation
already been promoted from a lower middle income country Financial Inclusion : Rural & Female Segment: IBBL Vs Country Position
to a middle income country. With the aim of building Smart
No Issue Industry IBBL
Bangladesh by 2030 and Developed Bangladesh by 2041 under
the National Financial Inclusion Strategy, account opening of 1 Rural Outlet 86% 93%
all adult citizens of the country will be ensured by 2025.
2 Rural Account 87% 92%
‘Agent Banking’ introduced by Bangladesh Bank as an 3 Rural Deposit 77% 92%
innovative financial inclusion tool in 2013 has acted like a
major catalyst in this regard. Within a short span of time, this 4 Female Account 39% 32%
innovative model gains popularity as a cost-effective delivery
5 Per Outlet Account Open 835 1244
channel among the masses and makes a significant beneficial
impact in building a happy, prosperous and enlightened
Bangladesh. Inclusion
In most of the outlets, huge response from the locality were
IBBL Share in Country Agent observed which reflects in the enrollment of 3,354,992
Banking Operation customers within very short span of time. Out of the client, male
Percentage and Figure as on December 2022 were 1,944,895 (58%) and female 1,410,097 (42%). It indicates
that more women are involving into traditional banking services
Outlet Account Deposit through agent banking. Among the total accounts, 227,833
No-2,694;13% No-33,54 LAC; 19% Amt-11,049 CR; were in urban category and 3,127,159 were in rural category.
Average number of account per outlet was 1,245
Total 20,836 Total 1.74 CR 37% Totall 29,687 CR CR
3rd Position 3rd Position 1st Position
Remittance Monthly Investment

Trans. Disbursed
Amoun-16,1128 CR; Montkly Trans, Number Amt- 311.96 crore;3% Cost of Fund of
Agent Banking
50% Toatl 32,002 CR 38,53 lac;25% Total- 10307.27; Crore
1st Position 1st Position 6th Position
Agent outlets have done a tremendous job for country’s

Cost of Fund Comparison
IBBL IBBL Agent
economy during covid-19 situations i.e. 100% of the outlets Particulars 2020 2021 2022 (Jan-Jun 2020 2021 2022
remained open. Remittance beneficiaries, supply chain of Cost of Deposit 4.08% 3.51% 3.41% 3.72% 2.87% 3.08%
foods, medicine, essential goods & FMCG used agent outlets Cost of Admin 2.58% 2.67% 2.59% 2.78% 1.64% 1.18%
for transactions. At the end of December 2022, IBBL agent

Cost of Fund 6.66% 6.18% 6.00% 6.50% 4.51% 4.26%
2019 2020 2021 2022
banking enrolled 33.55 lac customers and accumulated deposit IBBL Cost of Fund 8.31% 6.66% 6.17% 6.41%
of Tk. 11,049.60 crore by basketing two thousand crore

(Jan-Sep 22)
IBBLAgent Banking 8.98% 6.50% 4.51% 3.70%

(Jan-Sep 22)
fresh deposit through 2,694 outlets. These outlets registered

Tk.16,128.70 crore foreign remittance inflows in 2022.

Directors’ Report
IBBL Agent Banking Operation as it was desired banking transaction respectively. Thus, IBBL agent outlets become
a ‘Effective Channel for Sustainable Development’. In 2022, cost of
Banks are interested to explore agent banking service as a low cost fund for agent Banking operation stands at 3.70% which is 2.71%
channel to onboard new customer, penetration to new geography, lesser than regular banking channel (September-2022).
increased sales of banking products and reduction of infrastructure
costs. It helps to uplift living of destitute people by creating Remittance Payment
opportunities of financing and new jobs in rural area. It also reduced
The amount of inward remittance payment through agent banking
customers time, risk, cost for their transactions and remittance
were Tk.16,128.70 crore in 2022 as against Tk.19,122.74 crore in
payment. Thus unbanked and underserved peoples from remote
2021 scoring a negative growth 19%. In 2021 number of remittance
villages, Chars, Haors, Hills, remote islands easily come at the
beneficiaries were 2,494,884 as against 27,95,310 in 2021 scoring
outlets for their business need and make transactions like cash
the negative growth rate 12%. This reflects, after covid-19 situation
deposit, cash withdrawal, online, RTGS, EFT, POS transaction, RDS
worldwide, the return of immigrants from abroad with their wealth
Investment and utility bill payment. Currently 38,53,549 customers
and opportunities to carry goods for opening of air travel with
transacted about Tk.27,299 crore in a month through IBBL
habitual expenditure while coming home.
agent outlets which is 46.76% and 66.94% of total country agent
Year wise growth in brief are depicted below

(In crore Taka)
Particular 2021 2022 Increase Growth (%) Position in BD Agent

Banking
Outlet 2,676 2694 18 0.67% 12.99% 3rd
No of Account 2,368,947 3,354,992 986,045 42% 19.20% 3rd
Deposit 9,049 10,959.30 1,910.30 22% 36.34% 1st
Remittance Number 2,795,310 2,603,071 192,239 (6.88%) -
Remittance Amount 19,112 16,128.70 (2,993.30) (16%) 52.09% 1st
Monthly Transaction No.(Dec. 22) 3,468,724 3,853,549 384,825 11% 24.67% -
Monthly Tr. Amount (Dec. 22) 23,344 27,299 3,955 17% 43.50% -
Investment 41.00 168.00 127.00 409.76% 3.05% 6 th
Skill Development
As the number of agents and their employees are increasing gradually, it is a difficult task to train all agents centrally. To
ensure proper customer service, develop skilled agent manpower, establish control mechanism over agent operation and
maintain all compliance, considering the changed covid-19 pandemic situation, IBBL started ‘Branch-Based’ training model
in the Year 2021. To maintain agent outlet as compliant units of IBBL workshop on AML & CFT, Awareness Program on
Cyber Security and Shariah Compliance in agent Banking operation are organized by ABD, IBTRA and Controlling Branch.
Sub-Branch Activities
Overall services of the banking sector are increasing, banking system is being modernized and customers are getting banking
services faster than ever before. Now the major driving force for economic growth in any country is the banking sector. The
banking sector plays a vital role in various activities of human life with the help of policy makers of Bangladesh.
The Sub-Branch is a new dimension of banking operation at minimum cost but with same services at a branch. In line with
the directives of Bangladesh Bank, 39 Banks are running Sub-Branch activities to build wider clientele base across the
country. Distance of sub-branch is maintained at least 1 km. away from the controlling branch. All kinds of banking services
business can be provided through the Sub-Branches. The cost of setting up Sub-Branches is much lesser compared to full-
fledged branches.

Directors’ Report
Money Laundering & Terrorist Financing Prevention Workshop & Agent Banking Conference
With a firm commitment of the economic and social 01. Deposit

development of Bangladesh, Islami Bank Bangladesh Limited
started its journey of Sub-Branch operation at Bijoynagar, Despite economic slow-down, high inflation and increasing
Dhaka in September 2019 expanding a new network in the consumer price index, total deposits of Sub-Branch in 2022
realm of private sector banking through personalized services rose to Tk. 48,495 million from Tk. 31,709 million in 2021.
and efficient management. The Sub-Branch of IBBL has added Cost free deposit retains 11.94% of the total deposits in 2022 as
new horizons to banking services for financial inclusion. against 10.08% in 2021. The growth of cost free deposit in the
IBBL has been able to achieve excellence in all indicators of current year is 25.70% as against 20.39% in the previous year.
business due to the people’s trust and love by using a massive
network through Branch, Sub-Branch and Agent Banking 02. Investment
Outlet along with other alternative delivery channels. As part Total general investment of Sub-Branch in 2022 is increased
of the strategic focus, IBBL is moving towards a paradigm by 304% over 2021. Total General Investment stood at Tk.
shift to face the future challenges as well as achieve the 7,575.15 million from Tk. 1,874.24 million in 2021.
sustainable growth. The slogan of the year 2023 is “Towards
Universal Banking” to reflect the strategic focus.
03. Comparative picture of Sub-Branches 2021 and 2022

Sl Particulars 31.12.2021 31.12.2022 Increase Growth
1 No. of Sub- Branch 219 228 9 4%
2 No. of Account 247,010 506,813 259,803 95%
3 Deposit 31,708.66 48,495.00 16,786.34 53%
4 Investment 1,874.24 7,575.15 5,700.91 304%
In future, preference will be given to those people who are IBBL is to continue banking services for the underprivileged
between 18 to 40 years age group and not banking with us. people who still remain out of the banking network as IBBL
IBBL will not only focus on technologically sound customers has the capability to reach those people with its wide manual
but also the people who are financially illiterate banking with and virtual network including Sub-Branch.
us and the citizens of remote areas. One of the vital targets of

Directors’ Report
Foreign Trade and Offshore Business

Foreign trade is an integral part of the overall development and national growth in all economies and Bangladesh is not an exception.
It plays a pivotal role in Bangladesh’s growth plan, where foreign exchange shortage is a significant obstacle. The majority of the
‘foreign exchange deficit’ would be compensated by exports and expatriate remittances. Therefore, an increase in exports and inward
remittances raise the country’s import potential, hence boosting industrialization and economic activity overall.
Performance at a glance
IBBL’s Market
Nature of Business 2021 2022 Growth (%)
SL Share (%) in 2022
1 2 3 4 5
1 Import 645,292 754,045 16.85% 10%
2 Export 301,782 369,637 22.48% 7.41%
3 Remittance 505,172 446,969 -11.52% 22.92%
Total 1,452,246 1,570,651 10.01%
Import Trend 2018-2022

Voiumme in million Tk.
800000 60%
700000 50%
600000
500000 40%
400000 30%
300000 20%
200000
100000 10%
0 0%
2018 2019 2020 2021 2022
Voulume 399816 499884 519046 619046 754045
Share 10% 9% 10% 11% 10%
Growth 4% 1% 5% 54% 17%
Export Trend 2018- 2022

400000 40%
Voiumme in million Tk.
350000 35%
30%
300000
25%
250000 20%
200000 15%
150000 10%
5%
100000
0%
500000
-5%
0 -10%
2018 2019 2020 2021 2022
Voulume 251592 234443 224970 324970 36937
Share 8.90% 7.73% 7.97% 8.03% 7.41%
Growth 5.00% -7.001% -4.00% 34.00% 22.48%

Directors’ Report
Foreign Remittance Business
Islami Bank has sustained its’ top position among the commercial Banks of Bangladesh in the year 2022 having market share
22% of country Remittance. We earned the highest ever (considering before Covid situation) foreign remittance amounting
USD4,654.31 million (BDT453,092 million) in 2022.
Remittance Services in 2022
Payments of 7,173,595 USD 4,654.31 million or Opening 35,293 NRB Accounts Number of Remittances paid
Remittances BDT453,092 million 2,603,071 by agent
Comparative position and Country-wise IBBL Remittance: IBBL earns foreign remittance from all around of the world. KSA
is the largest source of our remittances, followed by Kuwait, Malaysia, Oman, USA, UAE, UK, Qatar, South Korea, and
Singapore. In the year 2022, highest remittance received from the KSA, which is 33% of our total remittance
Comparative Foreign Remittance: Country vs. IBBL (2016-2022) Country-wise IBBL Remittance
Fig. in Million USD
21076
21287
22076
Area
18340
15498
13526
13610
6104
6343
4654
Country
3474
3014
3233
2646
IBBL KSA Malaysia Kuwait

2016 2017 2018 2019 2020 2021 2022 Oman USA UAE
Country 1361 13526 15498 18340 21076 22076 21287 UK Qatar S. Korea
IBBL 3233 2646 3014 3474 6343 6104 4654 Singapore Other
Last Five (05) years remittance performance (2018-2022) is shown in the chart:
Remittance Trend 2018-2022

Volume in million Tk
600000 70%
60%
500000 50%
400000 40%
30%
000000 20%
10%
200000 0%
100000 -10%
-20%
0 -30%
2018 2019 2020 2021 2022
Volume 275,212 305,514 486,274 505,175 446,969
Share 21% 19% 23% 27% 22.92%
Growth -18 -11% 59% 4% -12

Directors’ Report
Centre for Non Resident Bangladeshi awarded IBBL for highest Remittance Collection
Offshore Banking Performance

Offshore Banking Operations (OBO) is one of the major contributors to achieve the peak position of IBBL among the banking
industry of our country. Despite of pandemic situation, Russia-Ukraine war causing slowdown of business activities and
economic contractions, supply chain disruptions, rising prices of fuel, gas, food, consumer goods, industrial raw materials as
well as the sluggish global economic growth, OBO has been supporting the clients round the year. Facing myriad of challenges,
it stood 1stamong other OBO practitioner in the country.
Year end OBO exposure stands at USD 1356.72 million and operating profit of which was USD 2.00 million in 2022. The
major challenges of Offshore Banking operations of IBBL is increased borrowing rate due to increasing uptrend of LIBOR
rate, less recoveries from the customers, regulatory compliance and volatile FC market that causes maturity mismatch of Asset
and Liability of OBO.
Source of Fund (In million US$) Uses of Fund (In million US$)
41
147 BDO Fund 115 3
UPAS
284 Foreign Borrowing
864 864 HPSM in FC
Local Borrowing
MDB in FC
Deposit & Others

Directors’ Report
Gratitude
The Board of Directors expresses its heartiest gratitude to the Finally, the Board would like to express its great appreciation
Almighty Allah for enabling the Bank to achieve sustainable and thanks to all the officials and staff of the Bank for their
progress in all aspects of operations during the year 2022. The untiring efforts, leadership, and dedication in bringing about
Board extends thanks to the Ministry of Finance, the Ban- better performance of the Bank during the year.
gladesh Bank, the Bangladesh Securities and Exchange Com-
mission, Dhaka Stock Exchange Limited, Chattogram Stock May Allah, the most Merciful bestow on ourcourage,
Exchange Limited, National Board of Revenue, Registrar of dedication, patience, and fortitude to serve the cause of Islam
Joint Stock Companies, Statutory Auditors, and the Govern- and also of Bangladesh and run the Bank as per the vision
ment Agencies for providing necessary assistance, guidance, and mission put forth earlier and tenets of Islamic Shariah,
support, and cooperation at various stages of operations of the Ameen.
Bank. With a deep sense of gratitude, the Board also keeps
on record the excellent cooperation, exchange of views, and
constant support of the Islamic Development Bank (IsDB),
other national and overseas Islamic Banks, and Financial In-
stitutions.
The Board appreciates the support and cooperation received (Professor Md. Nazmul Hassan, Ph.D)
from overseas correspondents of the Bank all over the world. Chairman
The Board particularly likes to record its appreciation for the
Shariah Supervisory Committee, whose guidance has enabled
the Bank to conduct its business complying with Islamic
Principles. The Board of Directors also extends the best
compliments to all of its valued Shareholders, Depositors,
Investment Clients, Print and Electronic Media, and other
stakeholders and well-wishers and expresses thanks and

gratitude to them for their valuable support and confidence
reposed on the Bank.

CORPORATE
GOVERNANCE

Sub-Branch Business Development Conference
Corporate Governance structure of IBBL specifies the objective Board of Directors, Chairman and the CEO
of providing strategic direction, ensuring that goals are
achieved, ascertaining that risk is managed appropriately and Appointment of Directors
verifying that resources are utilized responsibly. Governance The members of the Board of Directors of IBBL are appointed
is evolved through the leadership and organizational structure pursuant to the provisions of Companies Act 1994, Bank
and process that ensure the enterprise sustains and extends Company Act 1991, Bangladesh Securities and Exchange
strategies and objectives focusing transparency, accountability Commission (BSEC) Notifications, Guidelines of Banking
Regulations and Policy Department (BRPD) of Bangladesh
and delegation of authority. The corporate governance has
Bank and Memorandum & Articles of Association of the
been aligned in line with the accepted corporate governance Bank. Independent Directors have been appointed by the
practices and guidelines of Bangladesh Bank and Bangladesh Board as per regulatory requirement. The Board is comprised
Securities and Exchange Commission’s Notifications. The of experienced members from diverse professions like
Bank has deployed utmost importance in setting up a well businesses, administration, banking & finance, chartered
defined compliance culture throughout the organization. accountancy, general management, teaching, physicians,
Shari’ah experts and engineers which make the Board very
effective and balanced in deciding and directing various
Board of
Legal and
issues of the Bank.
Directors and
Regulatory
Committees
Board Size
Framework
Vision
Mission
The Board of Directors consists of 20 (twenty) non-executive

members including 04 (four) Independent Directors excluding
Policies and Organisational
Procedures Hierarchy
the ex-officio Managing Director. The number of Board
members is within the limit set by Bank Company Act 1991
Smart Strategy
Goals
(amended upto 2018) and BSEC notification on Corporate

Governance.
Transparency & Obiective
Accountability Monitoring
and Internal
Selection and Appointment of New Directors

Control
The selection and appointment of new directors and the

reappointment of existing Directors are being made in line
with the following obligations and duties:

Discussion Meeting on the Martyrdom Anniversary of the Father of the Nation
1. Frequent assessment of the size and structure of the Md. Shahabuddin

Board and the mix of knowledge, skills, experiences and
perceptions that may be necessary to allow the Board to Mr. Md. Shahabuddin, nominated by JMC Builders Ltd.
perform its functions. resigned from the office of Director and from the position of
Vice-Chairman of the Bank vide letter dated 09.02.2023 and
2. Recognizing the capabilities and following the approved the Board of Directors of the Bank accepted the same in its
procedure to ascertain that an applicant designated by the 318th Board Meeting held on 20.02.2023.
shareholders possesses the same.
Professor Md. Kamal Uddin, Ph.D
The directors are selected by the shareholders in the Annual Consecutive two tenures [i.e. six years, from 15.01.2017
General Meeting. Casual vacancy, if any, is filled up by the to 14.01.2023] of Professor Md. Kamal Uddin, Ph.D were
Board in accordance with the conditions mentioned in the expired on 14.01.2023 as Independent Director. According
Companies Act and Articles of Association of the Bank. to BSEC Notiifcation No. BSEC/CMRRCD/2006-158/207/
Admin/80 dated 03.06.2018 gazetted on 10.06.2018, he is not
Appointment, re-appointment and retiremen eligible for re-appointment as Independent Director.
of Directors
Professor Dr. Mohammad Saleh Jahur
Tenure of 1st term of Professor Dr. Mohammad Saleh Jahur
Directorship of Mr. Md. Kamal Hossain Gazi was withdrawn expired on 06.05.2022 and the re-appoinment was approved
by Investment Corporation of Bangladesh (ICB) vide its Letter by the Board of Directors of IBBL in its 308th Meeting held
No. 53.13.0000.014.68.001.20.288/190 dated 28.11.2022 by on 21.03.2022 for a further term of 03 (three) years with
replacing Mr.Abu Taher Mohammad Ahmedur Rahman. effect from 07.05.2022. Accordingly, BSEC & Bangladesh
Abu Taher Mohammad Ahmedur Rahman Bank accorded their approval as Independent Director on
21.04.2022 & 10.05.2022 respectively and by the shareholders
The Board of Directors of Islami Bank Bangladesh Limited in the 39th AGM of the Bank held in 21.06.2022.
in its 317th Meeting held on 28.12.2022 approved the
appointment of Mr. Abu Taher Mohammad Ahmedur Rahman Professor Dr. Md. Fashiul Alam
as representative of Investment Corporation of Bangladesh Tenure of 1st term of Professor Dr. Md. Fashiul Alam expired
(ICB) in place of Mr. Md. Kamal Hossain Gazi. Accordingly, on 06.05.2022 and the re-appoinment was approved by the
Bangladesh Bank accorded its approval on 19.03.2023. Board of Directors of IBBL in its 308th Meeting held on
21.03.2022 for a further term of 03 (three) years with effect

Discussion Meeting on the philosophy & political life of the Father of the Nation
from 07.05.2022. Accordingly, BSEC & Bangladesh Bank Accordingly, Dr. Tanveer Ahmad, Representative of Paradise
accorded their approval as Independent Director on 21.04.2022 International Limited, Mr. Yousif Abdullah Al-Rajh,
& 10.05.2022 respectively and by the shareholders in the 39th Representative of Al-Rajhi Co. for Industry & Trade, K.S.A.,
AGM of the Bank held in 21.06.2022. Professor Md. Nazmul Hassan, Ph.D, Representative of
Armada Spinning Mills Ltd., Professor Dr. Md. Salim Uddin,
Mohammad Solaiman, FCA FCA, FCMA, Representative of Kingsway Endeavors Limited
and Dr. Areef Suleman, Repr. of Islamic Development Bank,
Tenure of 1st term of Mr. Mohammad Solaiman, FCA
K.S.A. among other Directors except Independent Directors,
expired on 17.06.2022 and the re-appoinment was approved
will retire from the Board of Directors at the ensuing 40th
by the Board of Directors of IBBL in its 308th Meeting held
Annual General Meeting and are eligible for re-appointment.
on 21.03.2022 for a further term of 03 (three) years with
effect from 18.06.2022. Accordingly, BSEC & Bangladesh The brief profile of the above Directors and involvement in
Bank accorded their approval as Independent Director on other businesses has been furnished in the Director’s profile
21.04.2022 & 10.05.2022 respectively and by the shareholders section and notes to the financial statements.
in the 39th AGM of the Bank held in 21.06.2022.
Directors’ Profile and Their Representation in the Board
Pursuant to the Companies Act 1994, one-third of the directors of Other Companies Incorporated in the Directors’ profile
shall retire from the Board at the AGM in a Public Limited
Company. Formation of different Committees of the Board
According to Companies Act 1994, Schedule-1, Reg-79 and The Board formed an Executive Committee, an Audit
Clause 82 & 83 of Articles of Association of IBBL, each year Committee and a Risk Management Committee. There is
one-third of the Directors retire from office and being eligible, no committee or sub-committee of the Board other than the
may offer themselves for re-election by shareholders at the above mentioned Committees. However, IBBL has a Shari’ah
Annual General Meeting. In line with the requirement of Supervisory Committee to look after the Shari’ah affairs
Bank Company Act and Articles of Association of the Bank, and gives suggestions to the Board, its sub-committees and
one-third Directors shall retire in the 40th AGM and they are management on Shari’ah issues.
also eligible for re-election.
The Executive Committee
Further, as per the Corporate Governance Code (CG) Code
issued by Bangladesh Securities and Exchange Commission The Executive Committee is comprised of 07 (Seven)
(BSEC), Independent Director(s) shall not be subject to members of the Board. The Executive Committee exercises
retirement by rotation. all the powers of the Board except those specifically given to
the Board by the Bank Company Act, 1991 and other laws and

Inauguration of Technological Excellence Campaign in Banking
regulations. The Executive Committee is responsible to the Chairman is Independent from the Chief Executive
Board of Directors. The duties of the Executive Committee Officer (CEO)
are clearly set forth in writing. The Company Secretary acts
as the secretary of the Committee. The Chairman is independent from the CEO. The Chairman of
the Bank is elected by the directors of the Bank and the CEO is
The Audit Committee being appointed by the Board of Directors upon permission from
Bangladesh Bank. The Board of Directors has clearly defined
The Audit Committee of the Bank, comprising of 05 (five) the roles and responsibilities of the Chairman and the CEO.
Members, has been formed in compliance with Bangladesh
Bank & BSEC guidelines. The Company Secretary acts as the Responsibilities of the Chairman of the Board
secretary of the Committee.
The responsibilities of the Chairman as defined in the BRPD
The Risk Management Committee Circular No.11 dated 27 October, 2013 of Bangladesh Bank
are fully complied with. The Chairman of the Board of
In order to formulate and implement appropriate strategies to Directors does not personally possess the jurisdiction to apply
identify and assess risk, its control and management, a Risk policy making or executive authority. He does not participate
Management Committee, comprised of 05 (five) members, in or interfere into the administrative or operational and
has been formed. The Committee monitors risk management routine affairs of the Bank. The Chairman is entitled to
policies & methods and reviews the risk management process conduct on-site inspection of any bank branch or financing
to ensure effective prevention and control measures. activities under the purview of the oversight responsibilities
of the Board. If needed, he calls for any information relating
Non-Executive Director to Bank’s operation or asks for investigation into any such
affairs and submits such information or investigation report to
All the members of the Board of Directors, except the the meeting of the Board or the Executive Committee. With
Managing Director, are non-executive directors. The Board the approval of the Board, he takes necessary actions there
has 04 (four) Independent Directors in conformity with against in accordance with the set rules through the CEO, if
the corporate governance notification and guidelines of deems necessary. The Chairman enjoys some specific benefits
regulatory authorities. The Independent Directors enjoy full from the Bank as stipulated in Bangladesh Bank guidelines.
independence in discharging their responsibilities and they
Number of Board Meetings
are well conversant in the field of business and professional
areas. The independent directors have required qualifications In 2022, 11 (eleven) Board meetings were held. A detailed
and corporate management/ professional experiences as disclosure showing number of Board Meetings held and
stipulated in BSEC notification as well as Bangladesh Bank status of participation of the Directors is given in the later part
guidelines. of the report.

Agreement with Bangladesh Bank for receiving export facilitation pre-finance fund
Code of Conduct for the Board of Directors rules and regulations for performing their duties properly. The
policy on training of Directors includes providing training
The Board of Directors follows a code of conduct adopted to and updated information on all the latest policy guidelines,
provide guidance to directors to carry out their duties in an circulars and acts issued by the regulatory/legislative authori-
honest, responsible and professional manner and within the ties. Sometimes special discussion sessions are to be arranged
scope of their authority, as set forth in the laws of the country with the experts. They also attend the programs organized by
as well as in the Memorandum and Articles of Association various professional bodies at home and abroad on technical,
of the Bank. Every Director assures annually signing a professional and corporate governance issues.
confirmation that they have gone through, have complied with
and will continue to comply with the set of codes approved by Directors’ Knowledge and Expertise in Finance and Accounting
the Board of Directors by BSEC, by Laws and by Bangladesh
Bank. Two Directors in the Board of the Bank are professionally
qualified Chartered Accountants. They are well conversant
Directors’ Report to Shareholders in the field of accounting and finance to provide guidance in
the matters applicable to accounting and auditing standards
All statements under Condition No. 1.5 of Bangladesh to ensure reliable financial reporting. Other Directors are
Securities and Exchange Commission’s Notification No. also well conversant in the field of business, administration,
BSEC/CMRRCD/2006-158/207/Admin/80 dated 03 June banking and their respective professional areas.
2018 are included in the Directors’ Report prepared under
Section 184 of the Companies Act, 1994. Accountability on Auditing and Financial Reporting
Independence of Non-Executive Directors The Board undertakes responsibilities for preparing and
presenting a balanced and comprehensive assessment of the
All the members of the Board of Directors, except the Manag- bank’s operations at the end of the each financial year through
ing Director, are non-executive directors. They are indepen- Annual Financial Statements, Annual Report and Quarterly
dent in expressing their views and opinions. The directors are Announcement of Financial Performance of the Bank to the
also independent from management and other relationships Shareholders. The Audit Committee of the Board assists in this
of the Bank that could materially affect the activities of the respect by scrutinizing the information to be disclosed, and to
Bank. They also adhere to the corporate governance practices ensure accuracy, adequacy, transparency and completeness of
and guidelines. the disclosed information.
Policy on Training of Directors Responsibilities of the Board of Directors

As per Bangladesh Bank guidelines, the directors shall make The main responsibility of the Board is to ensure good
themselves fully aware of the banking laws and other related governance in managing the affairs of the Bank. The Bank

Inauguration of Cyber Security Awarness Campaign
Company Act, 1991 gives responsibility to the Board of placed for review at the following Board meeting of the Bank
Directors for establishing policies for the bank, for risk and the minutes of the respective Board meeting of the Bank
management, internal controls, internal audit & compliance states that the Board of Directors of the Bank has reviewed the
and for ensuring their implementation. Keeping in view, affairs of the subsidiary companies also. The Audit Committee
the Board of Directors exercises business judgment in good of the Bank also reviews the financial statements, in particular
faith, in a manner that they reasonably believe to be in the the investments made by the subsidiary companies.
best interest of the Bank, while complying with the applicable Responsibilities and Authorities of the CEO & Managing Director
laws and regulations, the Bank’s Articles of Association and
resolutions adopted by the shareholders. The CEO & Managing Director of the Bank discharges the
responsibilities and exercises the authorities as follows:
Annual Appraisal of the Board’s Performance
(a) The CEO & MD ensures compliance of the Companies Act
In every Board meeting, the attendance of the Directors is & the Bank Company Act and/or other relevant laws and
registered and they actively participate in the valuable and regulations in discharging routine functions of the Bank.
fruitful discussion of various agenda. The performance of the
(b) He submits information on violation of any law, rules,
Board is appraised in various ways through submission of the
regulation including the Bank Company Act, while
performance of the bank in the Board meeting periodically,
presenting memos before the Board or the committee
preparation and monitoring of budget variances, placing the
formed by the Board.
implementation status of the Board’s decisions, transacting
business issues which are within its power and placing (c) He provides all information to Bangladesh Bank on the
implementation status of Bangladesh Bank’s observations on violation, if any, of the Bank Company Act, and/or any
various issues. Furthermore, the performance report of the other laws, rules and regulations.
committees framed by the Board is also placed in the Board (d) The recruitment and promotion of all staffs of the Bank
through which the performance of the Board is regularly except those in the two tiers below him rest on the
evaluated. MD & CEO. He acts in such cases in accordance with
the approved service rules on the basis of the human
Governance of Board of Directors of Subsidiary Company
resources policy and sanctioned manpower planning
Provisions relating to the composition of the Board of the approved by the Board. The authority relating to transfer
holding company are made applicable to the composition of the and disciplinary measures against the employees, except
Board of the subsidiary companies, i.e. Islami Bank Securities those at two tiers below the MD & CEO is delegated to
Ltd. and Islami Bank Capital Management Ltd. At least 1 him, which he applies in accordance with the approved
(one) independent director on the Board of the Bank becomes service rules. Besides, under the purview of the human
a director on the Board of the subsidiary companies. The resources policy as approved by the board, he nominates
minutes of the Board meeting of the subsidiary companies are officers for training, skill development Program, etc.

Annual Evaluation of the CEO’s Performance by the Board Appointment and Composition
The Board of IBBL has the policy of annual evaluation of its Audit Committee of the Bank, comprising of 05 (five)
Managing Director and CEO’s performance. Moreover, the members among which 02 (two) are Independent Directors,
performance of the CEO is evaluated by the Board through has been formed in compliance with Bangladesh Bank and
various reports like performance report of the Bank, taking the Bangladesh Securities & Exchange Commission (BSEC)
status of various assignments given by the Board to the CEO guidelines. Other than Company Secretary, members of
and the Management, taking implementation status of Budget the Management attend the Committee Meeting as & when
which includes the Key Performance Indicators (KPIs) of the
required and on invitation only. A detailed report of the Audit
Bank, etc.
Committee is included in this annual report.
Appointment of CFO, Head of Internal Audit and
Company Secretary Chairman of the Audit Committee
The Bank appointed a Chief Financial Officer (CFO), a Head The Chairman of the Audit Committee is an Independent Non-
of Internal Audit (Internal Control and Compliance) and a Executive Director and he performs his duties independently.
Company Secretary (CS) from different individuals who do
not hold any executive position in any other company at the Terms of Reference (ToR) of Audit Committee
same time as per guidelines of regulatory authorities. The
The Audit Committee of IBBL strictly observes the Terms
Board of Directors clearly defined the roles, responsibilities
of Reference of the Committee issued by the Bangladesh
and duties of the CFO, the Head of Internal Audit and the CS.
Bank through Guidelines on Internal Control & Compliance
Role of the Company Secretary in Banks (2016), BRPD Circular No. 11 dated 27 October
Company Secretary is responsible for advising the Board 2013 and Corporate governance guidelines issued by BSEC.
on issues relating to corporate compliance with the relevant As per the terms of the said Circulars, the Audit Committee
laws, rules, procedures and regulations affecting the Board plays a key role in finalization of the Financial Statements
and the Bank, as well as best practices of governance. He is
of the Bank. It also reviews the Internal Control System of
also responsible for advising the Directors regarding their
obligations and duties to disclose their interest in securities, the Bank, Internal Audit Reports, External Audit Reports,
disclosure of any conflict of interest in a transaction involving Bangladesh Bank Inspection Reports, Shari’ah Inspection
the Bank, prohibition on dealing in securities and restrictions Reports and provides necessary policy guidelines as required.
on disclosure of price-sensitive information. The Committee is empowered to investigate/question any
Attendance of CFO and Company Secretary employee of the Bank. It can also take External Expert
The Company Secretary, Chief Financial Officer (CFO), Counsel, if deems necessary.
Head of Internal Audit (Internal Control and Compliance) of
the Bank attend meetings of the Board of Directors, excluding Audit Committee Comprises of Non-Executive Director
those, which involve consideration of an agenda item relating All the members of the Audit Committee are Non-Executive
to their personal matters.
Directors. No executive of IBBL is eligible to become a
Audit Committee member of the Audit Committee.
The Board approves the objectives, strategies and overall
business plan of the Bank while the Audit Committee assists Expertise of the Audit Committee members
the Board in fulfilling oversight responsibilities. The Audit
All the members of the audit Committee are qualified and have
Committee also assists the Board in ensuring the financial
statements reflect true affairs and ensures a good oversight years of experience in Banking & financial institutions. They
of internal control practices within the bank. The Audit have high level of expertise in the respective areas. Name,
Committee is responsible to the Board of Directors. The roles qualification & experience of the members are stated below:
of the Audit Committee are clearly set forth in writing. The
Company Secretary acts as the Secretary of the Committee.

Sl.
Name Role Qualification/ Experience
No.
Commerce Graduate under Chittagong University, Qualified as Chartered
Accountant from the Institute of Chartered Accountant Bangladesh (ICAB),
a fellow member of ICAB started career as public accountant & then joined
Government service as Accountant Member of Taxes Appellate Tribunal
(Ex-Officio Joint Secretary), subsequently promoted to the post of President
1 Mr. Mohammad Solaiman, Chairman
(Ex-Officio Additional Secretary), the top position of Taxes Appellate
FCA
Tribunal, Internal Resources Division (IRD), Ministry of Finance,
Govt. of Bangladesh, after retirement, started accountancy profession as
public accountant under the name & style M. Solaiman & Co, Chartered
Accountants..
M.Sc., LLB (Rajshahi University); acted as Commissioner of Anti Corruption
2 Mr. Mohammed Shahabuddin Member Commission, Chairman of Labor Court & District Judge, Member of Judicial
Inquiry Committee, Chairman of Judicial Inquiry Commission etc.
B.A (Hons.) &M.A in Economics (Dhaka University &University of
New England, New South Wales, Australia); Ex. Executive Director of
Bangladesh Bank, DMD of Pubali Bank Limited, acted as Managing
3 Mr. Khurshid-Ul-Alam Member
Director of Security Printing Press (BD) Ltd, served as Chairman of the
Audit Committee and Member of Risk Management Committee of Pubali
Bank Ltd, is a Life Member of Bangladesh Economic Association.
M.Com in Accounting (Dhaka University), CIMA Adv Dip MA (UK) and CMA
&FCMA (ICMAB); Group General Manager (Chief of Finance &Accounts)
Mr. Mohammed Nasir Uddin
4 Member of Bay Group. Has a long career in Sunman Group, Monno Group of Industries,
FCMA
MEB Group, Saad Musa Group, S.A Group, Opex &Sinha Textile Group
etc. in different capacities .
Professor Kamal started his career as Lecturer in the Department of
Marketing in 1993 of Dhaka University. Now he is a Professor of Department
of International Business of University of Dhaka. He was a student of
Dhaka College and obtained B.Com (Hons.) and M. Com in Marketing
from University of Dhaka. He did M. Econ and PhD in Development
Professor Md. Kamal Uddin, Economics from Osaka University, Japan. He was Postgraduate Researcher
5 Member
Ph.D in Kyoto University, Post-doctoral researcher in Cambridge University and
University of Nice. His current research interests include Competition of
Telecommunications and International Capital Movements. Many of his
research papers are published in national and international Journals. He
was elected treasurer of DUTA and other important executive bodies of
University of Dhaka.
Access of Head of Audit to the Audit Committee

The Head of Audit has the direct access to the Audit Committee. Head of other unit or any other Officer attends the meeting
of the Audit Committee, if deems necessary.
Review and Evaluation of Quarterly Performance Report

The Audit Committee reviews and evaluates the quarterly performance including the financial reports and refers the same to
the Board.
Meeting of Audit Committee
During the year 2022, the Audit Committee of the Bank conducted 07(seven) meetings. Proceedings of the meetings were
reported timely & regularly to the Board of Directors as well as Bangladesh Bank to comply the Bangladesh Bank DOS
Circular Letter no.07 dated 24.04.2011
Role of Audit Committee in Ensuring Regulatory Compliance
The Audit Committee reviews and examines the financial statements of the Bank every year to see whether all the disclosures &
information have been incorporated in the Financial Statements properly, whether the Bank followed International Accounting

Standards (IAS) and International Financial Reporting appropriate activity controls for different departments or
Standards (IFRS) adopted as Bangladesh Accounting Standards divisions, physical controls, checking for compliance with
(BAS), Bangladesh Financial Reporting Standards (BFRS) by exposure limits and follow-up on non-compliance, etc.
the Institute of Chartered Accountants of Bangladesh (ICAB). Inspection by Bangladesh Bank
The Committee also examined whether requirements of the
Bank Companies Act, the Companies Act, the Bangladesh Bangladesh Bank conducted the 30th Comprehensive
Securities and Exchange Commission Rules, the Dhaka and Inspection on Head Office and Branches in 2022, findings of
Chattogram Stock Exchange Rules, listing Regulations and which are yet to be discussed in the Board Meeting. Moreover
other Laws and Rules applicable in Bangladesh and Standards Bangladesh Bank Inspection Team conducted various
issued by the Accounting and Auditing Organization for type of inspections/visits (Comprehensive, SME, F.Ex &
Islamic Financial Institutions (AAOIFI), Manama, Bahrain, Surprise Visit) on 37 Branches including 14 Divisions of
etc have been followed meticulously in formulation of Head Office in this year. Core Risk areas including others
financial statements of the Bank. were also inspected by the Bangladesh Bank’s Inspection
Team. Findings of the inspections were discussed in the
Selection of Appropriate Accounting Policies Meetings of Audit Committee as well as in the Meetings of
The issues related to selection of appropriate Accounting the Board of Directors. The Board unanimously expressed
Policies in line with International Accounting Standards their determination to strictly follow the rules & regulations
(IAS) and International Financial Reporting Standards provided by all regulatory concerns to become one of the best
(IFRS) adopted as Bangladesh Accounting Standards (BAS) complied Bank.
and Bangladesh Financial Reporting Standards (BFRS) Internal Audit
respectively by the Institute of Chartered Accountants of  Monitor/evaluate whether internal audit functions are truly
Bangladesh (ICAB) and other Regulatory Guidelines were independent.
discussed in the meeting of Audit Committee. The Accounting
Policies are annually reviewed at the time of finalization of  Review the activities, structure and style of conduct
Financial Statements. of internal audit functions to ensure that no unjustified
Annual and Interim Financial Statements Releases restrictions or limitations are imposed.
Audit Committee reviews the Annual and Interim Financial  Review and assess the annual internal audit plan.
Statements and recommends the same to the Board for
approval.  Review the efficiency and effectiveness of internal audit
Attendance of the Chairman as well as the Members of functions.
the Audit Committee in AGM
 Review and ensure that appropriate recommendations
The Chairman as well as all the Members of the Audit made by internal auditors to remove irregularities, if any,
Committee attends at the Annual General Meeting of the are duly acted upon by concerned personnel in running the
Bank. affairs of the Bank.
Internal Control External Audit
In the 39th Annual General Meeting held on 21st June, 2022,
Directors’ Responsibilities to Establish and Maintain
Internal Control the Shareholders appointed M/s. ACNABIN, Chartered
Accountants and Howladar Yunus & Co., Chartered
A system of strong Internal Control can help to achieve the Accountants to audit the Financial Statements and Nostro
goals and objectives of a Bank. Internal Control is a process Accounts of the Bank for the year 2022. Statutory Auditors
established by the Board of Directors, Senior Management audited 74 Branches and Head Office as part of the Annual
and all level of personnel to create a compliance culture. To Audit Program, which covered 80% of the Risk-Weighted
ensure appropriate level of Internal Control System a good Assets of the Bank. Statutory Auditors also submitted a
number of standard operating manuals and policy guidelines Management Report. This Report was discussed in the
have been introduced in the line with global best practices Meeting of Audit Committee and sent to Bangladesh Bank
and regulatory guidelines. Delegations of powers in various as per requirement. The Audit Committee also monitored its
businesses, administrative and financial areas have also been compliance.
approved by the Board.
Control system and allocation of duties & responsibilities
Control mechanism is an integral part of the daily activities
of the Bank. An effective internal control system requires
that an appropriate control structure be set up with control
activities defined at every business level which is ensured in
the Bank. The control mechanism include top-level reviews,

Risk Management Bangladesh Bank regarding the matter, the management of
IBBL has formed an ‘Ethical Committee’, ‘Focal Point’ and an
Identification of the Risks exhaustive action plan to implement the same.
Risk Management Wing (RMW) has been set up as per the
Citizen Charter
guidelines of Bangladesh Bank. The Wing is responsible for
identification and management of risks faced by the Bank. The The concept of Citizen’s Charter enshrines the trust between
details of internal and external risk management mechanism the service provider and its users. The citizen’s charter is a
are included in Risk Management disclosures. document of commitments that gives important information
in respect of the services being or to be provided by
the organization-public or private. As per guideline of
Human Recourse Management
Bangladesh Bank as well as to ensure better financial services
Ethics and Compliance and protect customers’ rights side by side to help boosting
accountability of the employees working in banks, IBBL is
Every organization has some sort of principles and ethics
committed to maintain the transparency and discipline of the
that are considered to have been the binding upon their
services provided by the banks, availability of service-related
persons/employees. Islami Bank Bangladesh Limited
information, increase the participation of customers in the
has a comprehensive ‘General Conduct and Discipline
service activities and ensure the accountability of the bank
Policy’ consisting of distinctive principles and ethics for its
employees.
employees. IBBL gives due importance to the ethical values
in every aspect of operations for preserving the interest Whistle Blowing Policy
of all the stakeholders towards sustainable growth and
development of the country. Enforcement of corporate code Some organic structures have been evolved to fulfil the purpose
of ethics requires clear understanding of the same and active of the whistle blowing policy of IBBL aiming to promote the
observance by everyone in the bank since the code spells transparency as well as to serve as a channel of corporate fraud
risk management. The system enables an employee, who has a
out the expected standards of behaviour and sets the ideal
legitimate concern on an existing or potential wrong-doing, to
operating principles to be followed. IBBL is always pledge
raise the issues and bring the same to the notice of competent
bound to ensure meticulous compliance of all the regulatory
authority. Central Complaint Cell has been established to
guidelines, instructions etc. protect the fraud and error. Risk Management Wing (RMW)
Gender Equality & Prevention of Sexual Harassment Policy also acts as the whistleblower at IBBL.
Discrimination based on gender is a common civil rights Conflict of Interest

violation that takes many forms; including discriminatory
attitudes, unfavorable environment, sexual harassment, All the employees are required to refrain from doing any
pregnancy discrimination, and unequal pay for women who activity which may result in conflict of interest. Any actual
do the same jobs as men. Islami Bank Bangladesh Limited or potential conflict is reported to the Management as soon
equally value male and female employees in the workplace as it is recognized for immediate solution of the same. The
and does not allow any sort of discrimination on the basis of employees are encouraged to avoid the conflict of interest as
gender; rather it is always committed to extend all sorts of long as they hold positions in the organizations and amongst
facilities for the female employees so that they may not face others.
any difficulties in discharging their official duties.
Human Capital
Effective Anti Corruption and Anti-Fraud Program Human capital is nothing but the lifeblood of an organization
IBBL arranges anti-fraud and anti-corruption program as that circulates the vital fluids in the whole organic structure.
per the guidelines of regulatory authorities to help prevent This life blood makes the organization function properly in
the occurrence of any fraud & corruption and all tiers of the achieving the targeted goals. To keep the organizational body
employees are being constantly trained on these issues. vibrant and energetic, fresh lifeblood is required to be infused
on regular basis and The Bank is doing this job thorough its
National Integrity Strategy (NIS) concerned organ to serve the purpose.
To prevent corruption and to promote integrity in all affairs
of the state and society, the Government has formulated the Succession Planning
strategy titled ‘Commitment for Golden Bengal: National Efficient succession planning is an integral part for effective
Integrity Strategy of Bangladesh’ wherein active participation employee management and IBBL has got a sound succession
of the institutions and organizations of the state, civil society and plan to carefully avoid the problems of instant vacuum
private sector is of paramount importance for implementation of the senior/key executives that may take place due to
of this strategy by way of promoting the culture of ethics and retirement, resignation and termination etc. In keeping with
morality among the people. In line with the Government’s these imperatives, Human Resources Wing is to design and
‘National Integrity Strategy’ as well as the guidelines of maintain a succession plan.

Merit Based Hiring of its customers, employees and regulators significantly
Hiring of committed, dedicated and meritorious human influence sustainable growth and development of the country.
resources is an integral part to run the organization smoothly IBBL adopts Core Values, Commitments and Code of
and efficiently. IBBL generally recruits heterogeneous Conduct and Ethical Principles which are approved by the
workforces having diversified academic background and Board of Directors as well as circulates to all employees
transform them into a homogeneous one through extensive for meticulous compliance. All the employees are always
training and development process. expected to maintain high ethical standards and adequate
internal control measures to guard against the occurrence of
Performance Appraisal System any unethical practices and irregularities.
IBBL follows a well-structured performance appraisal system Healthcare, Safety standards and Modern Working
(commonly known as ACR) for evaluating the performance Environment
of the employees. Initiative has also been taken to introduce
the Key Performance Indicator (KPI) systematically to assess IBBL is the pioneer of welfare banking in the country that
the performance of the employees who have specific and constantly endeavors to do something for the benefit and
measurable annual business targets. well-being of the citizens as well as of its employees. A good
number of welfare programs aiming to healthcare, safety
Promotion, Reward & Motivation standards & working environment etc are there in IBBL
which covers, amongst others.
IBBL follows structured human resources policy in awarding
promotion, reward and recognition to its employees. Promotion Fringe benefit schemes
cannot be claimed as a matter of right. It is awarded to those
who deserve ones. Every year IBBL awards promotion to  Non-refundable financial assistance from Employees’
the eligible employees keeping in view the quality of their Benevolent Fund
respective job delivery, performance and potentiality.  Non-refundable financial grant from bank’s fund
 Staff House Building Investment Scheme
Training and Development  Staff Household Durables Scheme
Training is being imparted with the objective to ensure  Quard against Provident Fund
balanced improvement of its employees’ professional  Quard against Benevolent Fund
knowledge, competencies and skill tempered by highest level
 Leave encashment
of moral and ethical spirit.
 Burial expenses
Human Resources Accounting  Recreation Leave program
 Honorarium for passing Banking Diploma examination
Human resource accounting is the process of identifying and
measuring the data about human resources and communicating  Awarding of scholarships to help educate the meritorious
the information to the interested parties. With the help of this wards of the employee
process, the Bank identifies and measures the data about its  Awarding of cash prize and certificate of merit to the
human resources. This system provides various types of data meritorious wards of bank employees
with regard to its human resources, namely its human resource  House rent allowance
strength (for e.g., the number of employees in different
 Conveyance allowance
positions - executive, officer, sub-staff), total workforce by
age and gender, employee productivity as well as number of  Medical allowance
employees who undergone any specific training programs.  Travelling allowance
 Entertainment & Lunch allowance
Corporate Governance, Transparency & Ethics  Doctor’s service for the employees
Corporate governance is the system of internal controls  Car Investment Scheme
and procedures used to define and protect the rights and  Car maintenance allowance
responsibilities of various stakeholders. IBBL practices highest  House maintenance allowance
standard of corporate governance. All delegation of power
 Mobile phone allowance
to the management, transparency, accountability as well as
relationship among stakeholders are designed and maintained  Utilities allowances etc.
as per international standard of Corporate Governance. The
South Asian Federation of Accountants (SAFA), the Institute
of Chartered Accountants of Bangladesh (ICAB) and the
Institute of Cost and Management Accountants of Bangladesh
(ICMAB) have many a time awarded IBBL for Corporate
Governance. The bank believes that upholding the interest

Human Resource Strength
Category 2021 2022
Executive 969 1,072
Officer 11,103 12,613
Sub-Staff 1,894 1,853
Sub total 13,966 15,538
Rural Development Scheme (RDS) 3,129 3,119
Others (Temporary) 2,098 2,135
Total Manpower 19,193 20,792
Total Branch 384 394
Per Branch Employee (including RDS & others) 50 53
Per Branch Employee (Excluding RDS & others) 36 39
Total Workforce (Including temporary manpower) by Age distribution

Age Group Female Male Total
18-25 11 826 837
26-35 1,136 6,689 7,825
36-45 448 7,636 8,084
46-55 32 3,400 3,432
>56 5 609 614
Total 1,632 19,160 20,792
Training Programs during 2022
Sl. No. Particulars No. of Programs No. of participants

1 IBTRA 346 37,705
2 Division/Zonal Office 71 11,557
3 BIBM 88 403
4 BBTA 3 7
5 Other Institute 30 233
Total 538 49,905*
*Some employees participated more than one training programs in the year 2022.
Integrated Reporting
Employer of Choice 2021 2022

Total Employee 19,193 20,792
Percentage of voluntary attrition 0.76% 2.44%
Total number of training 551 538
Average training per employee 1 2
Number of fresh recruited as Sr. Officer & above - 11
Number of fresh recruited as Officer 5 5
Number of fresh recruited as Probationary Officer 146 -
Number of fresh recruited as Junior Officer 29 6
Number of fresh recruited as Trainee Junior Officer - 281
Number of fresh recruited as Assistant Officer 2 5
Number of fresh recruited as Trainee Assistant Officer 46 531
Number of fresh recruited as Trainee Assistant Officer (Cash) 85 947
Number of fresh recruited as Field Officer (RDS) 448 174
Number of fresh recruited as Asstt. Field Officer (RDS) - 21
Number of fresh recruited as Sub-staff 103 131

Remuneration Committee Communication to Shareholders & other Stakeholders
Committee Charter Policy on Communication with Shareholders and Stakeholders
Bangladesh Bank guidelines do not permit to form a separate IBBL follows specific policy to facilitate effective
committee of Board on remuneration. As such, IBBL does not communication with the shareholders and stakeholders. Share
have such type of committee. However, the Board of Direc- & Bond Division of the Bank maintains communication
tors time to time review and evaluate the remuneration paid to with the Shareholders, Bondholders and other related
all level of employees of the Bank. stakeholders. Shareholders and others may contact at any
time to this Department for any sort of information and query.
Compensation IBBL provides updated information in its website for all the
Compensation to the employees is decided by the Board of stakeholders of the Bank.
Directors where all the members are non-executive directors. Policy on Ensuring Participation of Shareholders at AGM
The Managing Director, Additional Managing Directors,
Deputy Managing Directors, Head of Human Resources, In order to make the AGM more participatory, IBBL declares
CFO and other related officials work on the issue as per guid- the date of AGM well ahead of time, circulate Annual Reports
ance of the Board. and other documents in time, arrange AGM in a well-known
place & convenient time. Shareholders are allowed to speak
Policies on Remuneration in the AGM freely to give their valuable suggestions.
Key policies to decide the remuneration include market trend,
inflation, job requirement, position of other banks in the same Environmental and Social Obligations
area etc. The detailed remuneration policy of the Bank is also Policies and Practices on Social and
described in ‘Market Disclosure of Basel-III. Environmental Responsibility
Meetings on Remuneration Issues The issue of climate change is being addressed seriously all
Meetings of the executives as well as meeting of related over the world. It is identified that Bangladesh being a southern
Board meetings are held time to time to see the status of the delta is under serious threat of natural disaster. A detailed
remunerations that are being paid to the employees in line discussion regarding environment and social obligation of
with the peer banks. IBBL is included in the Sustainability Report.
Remuneration of Directors, Chairman, Managing Director Specific Policies undertaken by the Bank
and Senior Executives
IBBL, being a responsible corporation, has taken some
Honorarium paid to the Chairman and Directors and others initiatives in this regard, which has been presented in Green
for attending meetings are as follows: Banking & Sustainability sections of this Report.
 For attending in Board Meeting / Shari’ah Supervisory
Committee Meeting Tk. 8,000.00 Contribution to Environment and Society
 For attending in Executive Committee /Audit A natural and clean environment, economical use of resources
Committee/Risk Management Meeting Tk. 8,000.00 and respect for people’s health and safety etc. are getting
increasingly important. In accordance with this, IBBL is
 Managing Director is paid salaries and allowances continuously working towards reducing consumption of
as per approval of the Board as well as Bangladesh energy, elimination of use of hazardous substances from its
Bank which is separately disclosed in the Financial processes and minimizing waste generation. The emphasis is
Statements.
on minimizing paper transactions to the extent possible. One
 The senior management is remunerated as per standard of the key targets for financing manufacturing companies is to
pay structure of the bank being approved by the Board reduce their carbon footprint.
of Directors.
Investors Friendly Information
Corporate Structure IBBL’s share is a very reliable choice to the investors due
Corporate Structure of IBBL is shown at the beginning of to its strong fundamentals in the area of capital adequacy,
the Annual Report. profitability, liquidity and market leadership driven by an
experienced top Management and dedicated human resource
Global Reporting Initiative (GRI)
base. Besides, the return on IBBL’s share is excellent. IBBL
The Global Reporting Initiative (GRI) is a non-profit ranked 882nd position among the top 1000 banks around
organization that promotes economic, environmental and social the globe in terms of profits on capital. The Bank has also
sustainability. GRI provides all companies and organizations reputation for Shari’ah based banking management. There
with a comprehensive sustainability-reporting framework is very little fluctuation in the Islami Banks share price and
that is widely used around the world. In line with the above, no rumor is observed in the Islami Bank’s share. Therefore,
Islami Bank Bangladesh Ltd. has started to incorporate the Investors rely greatly on this share.
components of standard disclosures in annual report.

Management Review & Responsibility guidelines to ensure Shariàh compliance in all activities of the
Managing Director acts as the Chief Executive Officer (CEO) Bank particularly in the modes of investment.
of the Bank. Bank has approved Organizational Structure Corporate Governance Compliance
(Organogram) with clear functional separation and segregation
Corporate governance has become firmly entrenched on the
of processing/functioning (Front and Back office) authorities.
world business scene over the past three decades. Today it
This ensures core risk management practice and compliance
is a key component in the operation of all manner of entities
across the Bank. Bank’s functions and plans also consider
around the globe. Even more important is the need for
various regulatory limits and restrictions to be risk compliant.
corporate governance to be effective, not only for business
Management Committee (MANCOM) entities but for the economy as a whole. Sound corporate
Management Committee (MANCOM), the apex management governance in the Banking is the prerequisite for efficient
body of the Bank, is comprised of 19 (nineteen) top-level financial market.
executives having long experiences and sound knowledge in Regulatory Compliance
banking. The Committee is headed by the Managing Director
Bank has meticulously been following related guidelines
& CEO of the Bank. The Committee exerts powers as
including submission of Quarterly, Half-yearly and
delegated by the Board and is responsible for implementation
Yearly financial statements and other statutory reports.
of the policies and guidelines approved by the Board. The
Any significant development in the business is forth-
MANCOM scrutinizes the issues thoroughly before placing
with disclosed in the form of price sensitive declarations
those to the Executive Committee, Audit Committee, Risk
adhering proper rules/guidelines/directives. Bank also
Management Committee and the Board.
ensures submission of returns to regulatory bodies in full
Investment Committee (IC) compliance of the requirements and appropriate disclosures
The Bank formed 02 (two) Investment Committee (IC) ensuring transparency and accountability. Board of Directors
comprising of senior executives to review and examine ensures adequate disclosures for the shareholders and other
all the investment related proposals and make specific stakeholders.
recommendations to appropriate business authorities. \ Compliance Status of Bangladesh Bank Circulars
Asset-Liability Committee (ALCO) The Bank has fully complied with Bangladesh Bank circulars,
The Asset & Liability Committee (ALCO) is constituted instructions and guidelines regarding Corporate Governance.
with the senior management of the bank and headed by the The Bank is governed by the Bangladesh Bank’s rules and
Managing Director & CEO. The Committee meets at least regulation on various issues of banking operation. As per
once in a month to review economic, market status, outlook BRPD Circular Letter No.11 dated October 27, 2013 regarding
and liquidity position of the bank. ALCO also assesses pricing Formation & Responsibilities of Board of Directors of a Bank
of assets and liabilities, maturity wise grouping of assets and Company, the Bank has complied with all the instructions
liabilities, Liquidity Contingency Funding Plan in order to including formation of Board of Directors, Independent
director, information regarding directors, responsibilities of
manage the Balance Sheet Risk in a prudent way, Transfer
the Board of Directors, formation of committees from the
Pricing, Liquidity Coverage Ratio (LCR), Net Stable Funding
Board of Directors and training of the Directors. The Bank
Ratio (NSFR) etc.
is also compliant with the BRPD Circular Letter No.18 dated
Supervisory Review Process (SRP) Team
October 27, 2013 regarding Appointment and Responsibilities
As per the revised process document of Bangladesh Bank for of the Chief executive officer.
SRP-SREP Dialogue on ICAAP under 2nd Pillar of Basel-
Corporate and Financial Reporting
III, the Bank has reconstituted the SRP Team with 10 (ten)
members headed by the Managing Director & CEO. The Directors of Islami Bank Bangladesh Limited in
conformance with the BSEC Notification No. SEC/
The Shari’ah Supervisory Committee
CMRRCD/2006-158/208/Admin/81 dated 20 June 2018;
As per Islamic Banking Guidelines issued by Bangladesh Bank, confirm compliance with the financial reporting framework.
IBBL formed an independent Shari’ah Supervisory Committee
consisting of 12 (twelve) members including experienced
and knowledgeable persons in Islamic Jurisprudence. The
Shari’ah Supervisory Committee of IBBL gives opinions and

Directors’ Attendance in the meeting of Board &

its Committees during the year 2022
Directors’ Attendance in the Board
Number of Meeting
Sl. No. Name of the Directors Position
Eligible to Attend Attended
1 2 3 4 5
1 Mohammad Nazmul Hassan Chairman 11 11
2 Yousif Abdullah A AlRajhi Vice-Chairman 11 09
3 Mohammed Shahabuddin Vice-Chairman 10 10
4 Md. Salim Uddin Director 11 11
5 Mohammad Solaiman Independent Director 11 11
6 Abdul Matin Director 10 10
7 Areef Suleman Director 11 11
8 Mohammad Sirajul Karim Director 11 11
9 Md. Kamal Uddin Independent Director 11 11
10 Mohammad Joynal Abedin Director 11 11
11 Dr. Qazi Shahidul Alam Director 11 11
12 Musaid Abdullah A AlRajhi Director 10 00
13 Syed Abu Asad Director 10 10
14 Tanveer Ahmad Director 11 11
15 Mohammad Quamrul Hasan Director 11 11
16 Dr. Mohammad Saleh Jahur Independent Director 11 11
17 Md. Fashiul Alam Independent Director 11 11
18 Khurshid-Ul-Alam Director 11 11
19 Mohammed Nasir Uddin, FCMA Director 10 10
20 Md. Kamal Hossain Gazi Director 10 9
21 Mohammed Monirul Moula Managing Director & CEO 11 11
Directors’ Attendance in the Executive Committee

Member of Meetings
1 2 3 4 5
1 Md. Salim Uddin Chairman 21 21
2 Yousif Abdullah A AlRajhi Member 21 0
3 Syed Abu Asad Member 20 20
4 Tanveer Ahmad Member 21 21
5 Mohammad Quamrul Hasan Member 21 21
6 Dr. Mohammad Saleh Jahur Member 21 21
7 Md. Fashiul Alam Member 21 21

Directors’ Attendance in the Audit Committee

Member of Meetings
1 2 3 4 5
1 Mohammad Solaiman Chairman 7 7
2 Mohammed Shahabuddin Member 7 7
3 Md. Kamal Uddin Member 7 7
4 Khurshid-Ul-Alam Member 7 7
5 Mohammed Nasir Uddin, FCMA Member 7 7
Directors’ Attendance in the Risk Management Committee

Member of Meetings
1 2 3 4 5
1 Abdul Matin Chairman 6 6
2 Areef Suleman Member 6 0
3 Mohammad Sirajul Karim Member 6 6
4 Mohammad Joynal Abedin Member 6 6
5 Qazi Shahidul Alam Member 6 6
Statement of Shares held by Directors & their Spouses and Minor Children as on 31.12.2022
Percentage of
Sl. Status in the total Paid-up
Name of the Director Representing Company No. of Shares
No. Board Capital of
IBBL
1 2 3 4 5 6
01 Mohammad Nazmul Hassan Armada Spinning Mills Limited Chairman 32,408,339 2.0130%
Al-Rajhi Co. for Industry & Trade, KSA Vice
02 Yousif Abdullah A AlRajhi 159,981,628 9.9368%
Chairman
JMC Builders Limited Vice
03 Mohammed Shahabuddin 32,360,812 2.0100%
Chairman
Kingsway Endeavors Limited
04 Md. Salim Uddin Director 70,799,870 4.3975%
05 Abdul Matin Uniglobe Business Resour Limited Director 75,202,140 4.6710%

Independent
06 Mohammad Solaiman 0 0.0000%
Director
07 Areef Suleman Islamic Development Bank, K.S.A. Director 33,848,625 2.1024%
08 Mohammad Sirajul Karim Excel Dyeing & Printing Limited Director 54,693,914 3.3972%
Independent
09 Md. Kamal Uddin 0 0.0000%
Director
10 Mohammad Joynal Abedin ABC Ventures Limited Director 32,301,030 2.0063%
11 Dr. Qazi Shahidul Alam Platinum Endeavors Limited Director 32,285,000 2.0053%
12 Musaid Abdullah A AlRajhi Arabsas Travel & Tourist Agency, K.S.A. Director 160,996,668 9.9999%
13 Syed Abu Asad Excelsior Impex Company Limited Director 32,200,334 2.0000%

14 Tanveer Ahmad Paradise International Limited Director 32,360,000 2.0099%
15 Mohammad Quamrul Hasan Grand Business Limited Director 32,547,335 2.0216%
Independent
16 Dr. Mohammad Saleh Jahur 0 0.0000%
Director
Independent
17 Md. Fashiul Alam 0 0.0000%
Director
18 Khurshid-Ul-Alam Lionhead Business Resources Limited Director 32,202,900 2.0002%
Mohammed Nasir Uddin BLU International Limited
19 Director 32,360,000 2.0099%
FCMA
Investment Corporation of Bangladesh
20 Md. Kamal Hossain Gazi Director 33,468,956 2.0788%
(ICB)
Statement of Shares held by CEO, Company Secretary, CFO, Head of Internal Audit and their
Spouses and Minor Children as on 31.12.2022
Percentage of
Sl. No. of
Name Status total Paid-up
No. Shares
Capital of IBBL
1 2 3 4 5
Mohammed Monirul Moula Managing Director & Chief Executive Officer (CEO) 8,139 0.00%
01 Rafia Akter Lucky W/o. Mohammed Monirul Moula, Managing Director
0 0.00%
& Chief Executive Officer (CEO)
J Q M Habibullah FCS Additional Managing Director & Company Secretary 0 0.00%
02 Mrs. Samima Akhter W/O. J Q M Habibullah, FCS, Additional Managing
0 0. 00%
Director & Company Secretary
Md. Ashraful Haque FCA Executive Vice President & CFO 0 0. 00%
03
Helena Parvin W/O. Md. Ashraful Haque, EVP & CFO 0 0. 00%
Md. Nayer Azam Deputy Managing Director & Head of Internal Con-
0 0. 00%
trol & Compliance Wing (ICCW)
04
Umme Habiba W/O. Md. Nayer Azam, Deputy Managing Director
0 0. 00%
& Head of ICCW
Statement of Shares held by top 5 (five) Salaried Employees other than the Directors, CEO,
Company Secretary, CFO, Head of Internal Audit (ICCW) as on 31.12.2022
Percentage of
Sl.
Name Designation No. of Shares total Paid up
No.
Capital of IBBL
1 2 3 4 5
01 Muhammad Qaisar Ali Additional Managing Director 0 0.00%
02 Md. Omar Faruk Khan Additional Managing Director 0 0.00%
03 Md. Altaf Hossain Deputy Managing Director 0 0.00%
04 Md. Siddiqur Rahman Deputy Managing Director 0 0.00%
05 Mohammad Jamal Uddin Mazumder Deputy Managing Director 667 0.00%


Credit Rating Status
Bangladesh Bank as per BRPD Circular No. 06 dated July 05, 2006 made ‘rating of the Banks’ mandatory on yearly basis with
effect from January 2007 and Banks are required to complete their Credit Rating within six months from the date of close each
financial year. IBBL started to get the rating services by domestic credit rating agency since 2002.
Previous Credit Rating statuses are shown as under

Rating status
Rated by Rating for the year
Long Term Short Term
1 2 3 4
2002 - 2003 A+ ST-2
2004 - 2005 AA- ST-1
CRISL
2006 - 2008 AA ST-1
2009 - 2016 AA+ ST-1
Alpha 2017-2020 AAA ST-1
Latest credit rating status
Long Term “AAA” Short Term “ST-1”

Exceptionally strong capacity for timely Superior capacity in paying
repayment of long term obligation short term obligation
Outlook- Stable
Emerging Credit Rating Ltd. (ECRL) has assigned “AAA” in long term & ST-1 in short term expose highest rating. This
report is valid upto 05.07.2023. IBBL has been maintaining this highest credit rating among the Private Commercial Banks
consistently and will likely to remain unchanged for years ahead.
Core fundamentals for scoring highest rating are:

Strong liquidity position;
Increasing total income;
Sound asset quality;
Increasing total asset base;
Experienced top management;
Advanced automation process;
Good corporate governance;
Environmental risk management;
Strong internal control;
Commendable market share.

IBBL achieved ICMAB Best Corporate Award 2021
Dividend Distribution Policy

This Policy is devised in compliance with the Directive No. SEC/ Procedure of declaration/recommendation of dividend
CMRRCD/2021-386/3- dated, 14 January 2021 of Bangladesh Dividend is approved by the shareholders at an Annual General
Securities and Exchange Commission. This policy is effective Meeting (AGM) on the basis of recommendation of the Board.
from 25th April 2021 being the date of its approval by the Board Dividend is recommended by the Board after consideration and
of Directors of the Bank. approval of the financial statements which were considered
by the Board Audit Committee before approval of the Board. All
Objectives requisite approvals and clearances, where necessary as applicable,
The Policy is aimed to lay down the criteria and parameters that are
are obtained before the declaration of dividend.
to be considered by the Bank while declaration and distribution of
the dividend.
Time line for dividend pays off
Factors to be considered for declaration of Dividend i.
Stock Dividend shall be paid off to the entitled shareholder
The Bank distributes the specified annual net profits, after deduction within 30 (thirty) days of approval.
of all general expenses and other costs and arranging the necessary
provisions against investment losses, off balance sheet exposures, ii.
Cash Dividend shall be paid off as per circular of BSEC or
other provisions and provision for taxation complying different Bangladesh Bank or other regulatory authority from time to time.
regulatory guidelines/restrictions:
iii.
Amount of declared cash dividend payable for the concerned
1. The Bank transfers @ 20% of the net profits before tax to year/period shall be kept in a separate bank account as per
the statutory reserve to ensure that the mentioned reserve circular of BSEC or Bangladesh Bank or other regulatory
becomes equal–at least–to the paid capital. However to authority from time to time.
strengthen bank’s capital base, the Board may transfer the
lump sum amount to the statutory reserve even if it exceeds Procedures of Cash dividend payment
amount of paid up capital.
As per the Regulation No.28 (Payment of Dividend) of Dhaka
2. The bank distributes a certain amount of its distributable profit Stock Exchange (Listing) Regulations, 2015 and Chittagong
to the shareholders. Stock Exchange (Listing) Regulations, 2015, Cash Dividend is
3. The Bank transfers the remaining distributable profit (if any) to distributed to the Shareholders within 30 days of holding the AGM.
the general reserve of the bank to support the business growth. Procedures are:

IBBL achieved Sustainability Rating Recognition
1. After Finalization of Accounts and getting recommendation Fractional Bonus Shares is issued in a BO account operated by the
for Cash dividend by the Board, an amount equivalent to Company Secretary of the Bank. Fractional Bonus Shares is sold
the declared cash dividend for the concerned year is kept in a out trough bank’s own DP and the received amount of sale
separate Bank Account. proceeds of Fractional Bonus Shares is distributed to the
2. The Bank pays off cash dividend directly to the bank account Honourable Shareholders’ Bank account(s) through Bangladesh
of the entitled shareholder as available in the BO account Electronic Fund Transfer Network (BEFTN), online (shareholders
maintained with the DP or the bank account as provided by maintained bank account with IBBL only) & Payment Warrants
the shareholder through Electronic Transfer within thirty are issued against the shareholders holding shares in Folio (paper
days of approval after deducting applicable tax at source, shares) and sale proceeds returned from BEFTN of BO IDs.
online (shareholders maintained bank account with IBBL Unpaid or unclaimed dividend
only) & if not possible to distribute cash dividend through Islami Bank Bangladesh Limited maintains detailed information of
BEFTN or any electronic payment system ,Dividend Warrants Unpaid or unclaimed. As of 31.12.2022 total amount of unclaimed
are issued against the shareholders holding shares in Folio dividend is Tk. 17,384,465. However Unpaid or unclaimed dividend
(paper shares). shall be settled as per instructions of BSEC or Bangladesh Bank or
3. In case of margin client having debit balance or margin loan of other regulatory authority from time to time.
stock broker or merchant banker or portfolio manager, the Bank Amendments / Modifications
pays off cash dividend to the Consolidated Customers’ Bank
Account (CCBA) of the stock broker or to the separate bank To the extent of any change/amendment is required in terms of
account of merchant banker or portfolio manager through any applicable law or change in regulations, the regulations would
Electronic Transfer in order to account for such dividend prevail over the policy and the provisions in the policy would be
immediately in the individual client’s portfolio account. modified in due course to make it consistent with the law of the land.
Such amended policy shall be placed before the Board for approval.
4. The Bank pays off cash dividend to non-resident sponsor,
director, shareholder or foreign portfolio investor through Review
the security custodian in compliance with the rules or This Policy would be reviewed on an annual basis or as and when the
regulations in this regard. need arises. Amendments (if any) would be approved by the Board
Procedures of stock dividend distribution Disclosure Policy
The stock dividend (Bonus Shares) is distributed to the Shareholders’ The Dividend Distribution Policy shall be available on the Bank’s
BO account(s) through Central Depository Bangladesh website and shall also be disclosed in the Bank’s Annual Report.
Limited (CDBL) within 30 (thirty) days from the date of
AGM against the shareholders holding shares in Folio (paper
shares) / BO IDs on record date.

Declaration by CEO and CFO
26 April, 2023
Board of Directors
Islami Bank Tower
40, Dilkusha C/A
Dhaka-1000
Subject: Declaration on Financial Statements for the year ended on 31st December, 2022
Dear Sirs,
Pursuant to the condition No. 1(5)(xxvi) imposed vide the Commission’s Notification No. BSEC/CMRRCD/2006-158/207/
Admin/80 dated 03 June 2018 under section 2CC of the Securities and Exchange Ordinance, 1969, we do hereby declare that:
(1) The Financial Statements of Islami Bank Bangladesh Limited for the year ended on 31st December, 2022 have been
prepared in compliance with International Accounting Standards (IAS) or International Financial Reporting Standards
(IFRS), as applicable in the Bangladesh and any departure there from has been adequately disclosed;
(2) The estimates and judgments related to the financial statements were made on a prudent and reasonable basis, in order
for the financial statements to reveal a true and fair view;
(3) The form and substance of transactions and the Company’s state of affairs have been reasonably and fairly presented
in its financial statements;
(4) To ensure above, the Company has taken proper and adequate care in installing a system of internal control and
maintenance of accounting records;
(5) Our internal auditors have conducted periodic audits to provide reasonable assurance that the established policies and
procedures of the Company were consistently followed; and
(6) The management’s use of the going concern basis of accounting in preparing the financial statements is appropriate and
there exists no material uncertainty related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern.
In this regard, we also certify that:
(i) We have reviewed the financial statements for the year ended on 31st December, 2022 and that to the best of our
knowledge and belief:
(a) these statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;
(b) these statements collectively present true and fair view of the Company’s affairs and are in compliance with
existing accounting standards and applicable laws.
(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 in violation of the code of conduct for the company’s Board of Directors or its members.
Sincerely yours,
26.04.2023 26.04.2023
Mohammed Monirul Moula Md. Ashraful Haque FCA
Managing Director & CEO Chief Financial Officer

CamScanner

Corporate Governance Complicance Status
(As per Condition No. 1(5)(xxvii))
Status of Compliance with the conditions imposed through Bangladesh Securities and Exchange Commission’s (BSEC) Notification No.
BSEC/CMRRCD/2006-158/ 207/Admin/80 dated 03 June 2018 issued under Section 2CC of the Securities and Exchange Ordinance, 1969:
Report under Condition No. 9.00:
Compliance Status
Condition (Put v in the appropriate Remarks
No. Title column) (if any)
Not
Complied
complied
1 Board of Directors
1(1) Size of the Board of Directors The Board of
The total number of members of a company’s Board of Directors Islami Bank
(hereinafter referred to as “Board”) shall not be less than 5 (five) Bangladesh
√
and more than 20 (twenty). Limited (IBBL)
is composed of
20 Directors.
1(2) Independent Directors
1(2) (a) At least one-fifth (1/5) of the total number of directors in the There are 4
company’s Board shall be independent directors; any fraction Independent
√
shall be considered to the next integer or whole number for Directors in
calculating number of independent director(s); IBBL Board.
1(2)(b) Independent director means a director-
1(2)(b)(i) Who does not hold any share in the company or holds less than one Independent
percent (1%) shares of the total paid-up shares of the company; Directors have
√
declared their
compliances.
1(2)(b)(ii) Who is not a sponsor of the company or is not connected with
the company’s any sponsor or director or nominated director
or shareholder of the company or any of its associates, sister
concerns, subsidiaries and parents or holding entities who holds
one percent (1%) or more shares of the total paid-up shares of
the company on the basis of family relationship and his or her √ Do
family members also shall 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)(b)(iii) Who has not been an executive of the company in immediately
√ Do
preceding 2 (two) financial years;
1(2)(b)(iv) Who does not have any other relationship, whether pecuniary
or otherwise, with the company or its subsidiary or associated √ Do
companies;
1(2)(b)(v) Who is not a member or TREC (Trading Right Entitlement
√ Do
Certificate) holder, director or officer of any stock exchange;
1(2)(b)(vi) Who is not a shareholder, director excepting independent director
or officer of any member or TREC holder of stock exchange or an √ Do
intermediary of the capital market;
1(2)(b)(vii) 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 firm or audit firm engaged in internal √ Do
audit services or audit firm conducting special audit or professional
certifying compliance of this Code;

Compliance Status
Not
Complied
complied
1(2)(b)(viii) Who is not independent director in more than 5 (five) listed
√ Do
companies;
1(2)(b)(ix) Who has not been convicted by a court of competent jurisdiction
as a defaulter in payment of any loan or any advance to a bank or √ Do
a Non-Bank Financial Institution (NBFI); and
1(2)(b)(x) Who has not been convicted for a criminal offence involving
√ Do
moral turpitude;
1(2)(c) The independent director(s) shall be appointed by the Board and
approved by the shareholders in the Annual General Meeting √ Do
(AGM);
1(2)(d) The post of independent director(s) cannot remain vacant for
√ -
more than 90 (ninety) days; and
1(2)(e) The tenure of office of an independent director shall be for a period
√ Do
of 3 (three) years, which may be extended for 1 (one) tenure only:
1(3) Qualification of Independent Director.
1(3)(a) Independent director shall be a knowledgeable individual with
integrity who is able to ensure compliance with financial laws,
√ -
regulatory requirements and corporate laws and can make
meaningful contribution to the business;
1(3)(b) Independent director shall have following qualifications:
1(3)(b)(i) Business Leader who is or was a promoter or director of an
unlisted company having minimum paid-up capital of Tk. 100.00
√ Not Applicable
million or any listed company or a member of any national or
international chamber of commerce or business association; or
1(3)(b)(ii) Corporate Leader who is or was a top level executive not lower
than Chief Executive Officer or Managing Director or Deputy
Managing Director or Chief Financial Officer or Head of Finance
or Accounts or Company Secretary or Head of Internal Audit √ Not Applicable
and Compliance or Head of Legal Service or a candidate with
equivalent position of an unlisted company having minimum paid
up capital of Tk. 100.00 million or of a listed company; or
1(3)(b)(iii) Former official of government or statutory or autonomous or reg-
ulatory body in the position not below 5th Grade of the national
√ Not Applicable
pay scale, who has at least educational background of bachelor
degree in economics or commerce or business or law; or
1(3)(b)(iv) University Teacher who has educational background in Economics Three
or Commerce or Business Studies or Law; or Independent
Directors are
√ University
Teacher and
have such
background

Compliance Status
Not
Complied
complied
1(3)(b)(v) Professional who is or was an advocate practicing at least in the
One
High Court Division of Bangladesh Supreme Court or a Chartered
Independent
Accountant or Cost and Management Accountant or Chartered
√ Director is
Financial Analyst or Chartered Certified Accountant or Certified
a Chartered
Public Accountant or Chartered Management Accountant or
Accountant.
Chartered Secretary or equivalent qualification;
1(3)(c) The independent director shall have at least 10 (ten) years of All ID have
experiences in any field mentioned in clause (b); experience of
√
more than 20
years
1(3)(d) In special cases, the above qualifications or experiences may be No such cases
relaxed subject to prior approval of the Commission. arose
1(4) Duality of Chairperson of the Board of Directors and Managing Director or Chief Executive Officer.
1(4)(a) The positions of the Chairperson of the Board and the Managing Prof. Md.
Director (MD) and/or Chief Executive Officer (CEO) of the Nazmul Hassan,
company shall be filled by different individuals; chairman
√
Mohammed
Monirul Moula,
MD & CEO
1(4)(b) The Managing Director (MD) and/or Chief Executive Officer
(CEO) of a listed company shall not hold the same position in √ -
another listed company;
1(4)(c) The Chairperson of the Board shall be elected from among the
√ -
non-executive directors of the company;
1(4)(d) The Board shall clearly define respective roles and responsibilities As per BRPD
of the Chairperson and the Managing Director and/or Chief circular No:
√
Executive Officer; 11; dated 27
October 2013
1(4)(e) In the absence of the Chairperson of the Board, the remaining
members may elect one of themselves from non-executive
directors as Chairperson for that particular Board’s meeting; Not applicable
the reason of absence of the regular Chairperson shall be duly
recorded in the minutes.
1(5) The Directors’ Report to Shareholders
1(5)(i) An industry outlook and possible future developments in the
√ -
industry;
1(5)(ii) The segment-wise or product-wise performance; √ -
1(5)(iii) Risks and concerns including internal and external risk factors,
threat to sustainability and negative impact on environment, if √ -
any;

Compliance Status
Not
Complied
complied
1(5)(iv) A discussion on Cost of Goods sold, Gross Profit Margin and Net
-
Profit Margin, where applicable;
1(5)(v) A discussion on continuity of any extraordinary activities and No such
their implications (gain or loss); extraordinary
√
gain or loss
occurred.
1(5)(vi) A detailed discussion on related party transactions along with
a statement showing amount, nature of related party, nature
-
of transactions and basis of transactions of all related party
transactions;
1(5)(vii) A statement of utilization of proceeds raised through public No such
issues, rights issues and/or any other instruments; situation arose
1(5)(viii) An explanation if the financial results deteriorate after the
No such
company goes for Initial Public Offering (IPO), Repeat Public
situation arose
Offering (RPO), Rights Share Offer, Direct Listing, etc.;
1(5)(ix) An explanation on any significant variance that occurs between
Quarterly Financial performances and Annual Financial -
Statements;
1(5)(x) A statement of remuneration paid to the directors including
√ -
independent directors;
1(5)(xi) A statement that the financial statements prepared by the
management of the issuer company present fairly its state of
√ -
affairs, the result of its operations, cash flows and changes in
equity;
1(5)(xii) A statement that proper books of account of the issuer company
√ -
have been maintained;
1(5)(xiii) A statement that appropriate accounting policies have been
consistently applied in preparation of the financial statements and
√ -
that the accounting estimates are based on reasonable and prudent
judgment;
1(5)(xiv) A statement that International Accounting Standards (IAS) or
International Financial Reporting Standards (IFRS), as applicable
in Bangladesh, have been followed in preparation of the financial √ -
statements and any departure there from has been adequately
disclosed;
1(5)(xv) A statement that the system of internal control is sound in design
√ -
and has been effectively implemented and monitored;
1(5)(xvi) A statement that minority shareholders have been protected from
abusive actions by, or in the interest of, controlling shareholders
√ -
acting either directly or indirectly and have effective means of
redress;


Compliance Status
Not
Complied
complied
1(5)(xvii) A statement that there is no significant doubt 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 there of shall be disclosed;
1(5)(xviii) An explanation that significant deviations from the last year’s
operating results of the issuer company shall be highlighted and -
the reasons thereof shall be explained;
1(5)(xix) A statement where key operating and financial data of at least
√ -
preceding 5 (five) years shall be summarized;
1(5)(xx) An explanation on the reasons if the issuer company has not
Not applicable
declared dividend (cash or stock) for the year;
1(5)(xxi) Board’s statement to the effect that no bonus share or stock
√ Not applicable
dividend has been or shall be declared as interim dividend;
1(5)(xxii) The total number of Board meetings held during the year and
√ -
attendance by each director;
1(5)(xxiii) A report on the pattern of shareholding disclosing the aggregate number of shares (along with name-wise
details where stated below) held by:
1(5)(xxiii)(a) Parent or Subsidiary or Associated Companies and other related
√ -
parties (name-wise details);
1(5)(xxiii)(b) Directors, Chief Executive Officer, Company Secretary, Chief
Financial Officer, Head of Internal Audit and Compliance and √ -
their spouses and minor children (name-wise details);
1(5)(xxiii)(c) Executives; and √ -
1(5)(xxiii)(d) Shareholders holding ten percent (10%) or more voting interest in
the company (name-wise details);
Explanation: For the purpose of this clause, the expression

-
“executive” means top 5 (five) salaried employees of the
company, other than the Directors, Chief Executive Officer,
Company Secretary, Chief Financial Officer and Head of Internal
Audit and Compliance.
1(5)(xxiv) In case of the appointment or reappointment of a director, a
√ -
disclosure on the following information to the shareholders:
1(5)(xxiv)(a) A brief resume of the director; √
1(5)(xxiv)(b) Nature of his or her expertise in specific functional areas; and √ -
1(5)(xxiv)(c) Names of companies in which the person also holds the
directorship and the √ -
membership of committees of the Board;


Compliance Status
Not
Complied
complied
1(5)(xxv) A Management’s Discussion and Analysis signed by CEO or
MD presenting detailed analysis of the company’s position and
-
operations along with a brief discussion of changes in the financial
statements, among others, focusing on:
1(5)(xxv)(a) Accounting policies and estimation for preparation of financial
√ -
statements;
1(5)(xxv)(b) Changes in accounting policies and estimation, if any, clearly

describing the effect on financial performance or results and
-
financial position as well as cash flows in absolute figure for such
changes;
1(5)(xxv)(c) Comparative analysis (including effects of inflation) of financial

-
performance or results and financial position as well as cash flows
for current financial year with immediate preceding five years
explaining reasons thereof;
1(5)(xxv)(d) Compare such financial performance or results and financial

-
position as well as cash flows with the peer industry scenario;
1(5)(xxv)(e) Briefly explain the financial and economic scenario of the country
√ -
and the globe;
1(5)(xxv)(f) Risks and concerns issues related to the financial statements, explaining
-
such risk and concerns mitigation plan of the company; and
1(5)(xxv)(g) Future plan or projection or forecast for company’s operation,

performance and financial position, with justification thereof, i.e.,
-
actual position shall be explained to the shareholders in the next
AGM;
1(5)(xxvi) Declaration or certification by the CEO and the CFO to the Board
as required under condition No. 3(3) shall be disclosed as per √ -
Annexure-A; and
1(5)(xxvii) The report as well as certificate regarding compliance of

conditions of this Code as required under condition No. 9 shall be √ -
disclosed as per Annexure-B and Annexure-C.
1(6) Meeting of the Board of Directors

The company shall conduct its Board meetings and record the
minutes of the meetings as well as keep required books and
records in line with the provisions of the relevant Bangladesh √ -
Secretarial Standards (BSS) as adopted by the Institute of
Chartered Secretaries of Bangladesh (ICSB) in so far as those
standards are not inconsistent with any condition of this Code.

Compliance Status
Not
Complied
complied
1(7) Code of Conduct for the Chairperson, other Board members and Chief Executive Officer
1(7)(a) The Board shall lay down a code of conduct, based on the The Bank has
recommendation of the Nomination and Remuneration Committee been maintain-
(NRC) at condition No. 6, for the Chairperson of the Board, other ing Bangladesh
board members and Chief Executive Officer of the company; Bank letter.
1(7)(b) The code of conduct as determined by the NRC shall be posted on Reference#
the website of the company. BRPD(R-1)
717/2021-5064;
Dated June 16,
2021
2 Governance of Board of Directors of Subsidiary Company.
2(a) Provisions relating to the composition of the Board of the holding
company shall be made applicable to the composition of the √ In practice
Board of the subsidiary company;
2(b) At least 1 (one) independent director on the Board of the holding
company shall be a director on the Board of the subsidiary √ Do
company;
2(c) The minutes of the Board meeting of the subsidiary company
shall be placed for review at the following Board meeting of the √ Do
holding company;
2(d) The minutes of the respective Board meeting of the holding
company shall state that they have reviewed the affairs of the √ Do
subsidiary company also;
2(e) The Audit Committee of the holding company shall also review
the financial statements, in particular the investments made by the √ Do
subsidiary company.
3 Managing Director (MD) or Chief Executive Officer (CEO), Chief Financial Officer (CFO), Head of
Internal Audit and Compliance (HIAC) and Company Secretary (CS).
3(1) Appointment -
3(1)(a) The Board shall appoint a Managing Director (MD) or Chief
Executive Officer (CEO), a Company Secretary (CS), a Chief
√ In practice
Financial Officer (CFO) and a Head of Internal Audit and
Compliance (HIAC);
3(1)(b) The positions of the Managing Director (MD) or Chief Executive
Officer (CEO), Company Secretary (CS), Chief Financial Officer
√ Do
(CFO) and Head of Internal Audit and Compliance (HIAC) shall
be filled by different individuals;
3(1)(c) The MD or CEO, CS, CFO and HIAC of a listed company shall not
√ Do
hold any executive position in any other company at the same time;
3(1)(d) The Board shall clearly define respective roles, responsibilities
√ Do
and duties of the CFO, the HIAC and the CS;

Compliance Status
Not
Complied
complied
3(1)(e) The MD or CEO, CS, CFO and HIAC shall not be removed from
their position without approval of the Board as well as immediate Do
dissemination to the Commission and stock exchange(s).
3(2) Requirement to attend Board of Directors’ Meetings
The MD or CEO, CS, CFO and HIAC of the company shall attend the
meetings of the Board: Provided that the CS, CFO and/or the HIAC √ -
shall not attend such part of a meeting of the Board which involves
consideration of an agenda item relating to their personal matters.
3(3) Duties of Managing Director (MD) or Chief Executive Officer (CEO) and Chief Financial Officer (CFO)
3(3)(a) The MD or CEO and CFO shall certify to the Board that they
have reviewed financial statements for the year and that to the
best of their knowledge and belief:
3(3)(a)(i) Financial statements do not contain any materially untrue
statement or omit any material fact or contain statements that √ Stated in the
might be misleading; and certificate of
Due Diligence
3(3)(a)(ii) Financial statements together present a true and fair view of the by CEO and
company’s affairs and are in compliance with existing accounting √ CFO
standards and applicable laws;
3(3)(b) The MD or CEO and CFO shall also certify that there are, to
the best of knowledge and belief, no transactions entered into by
the company during the year which are fraudulent, illegal or in √
violation of the code of conduct for the company’s Board or its -
members;
3(3)(c) The certification of the MD or CEO and CFO shall be disclosed
in the Annual Report.
4 Board of Directors’ Committee.
4(i) Audit Committee; and Audit Commit-
tee consists of
Five NonExec-
√ utive Directors
including Two
Independent
Directors.
4(ii) Nomination and Remuneration Committee. Not in practice
5 Audit Committee.
5(1) Responsibility to the Board of Directors.
5(1)(a) The company shall have an Audit Committee as a sub-committee
√ In Practice
of the Board;
5(1)(b) The Audit Committee shall assist the Board in ensuring that the
financial statements reflect true and fair view of the state of affairs
√ Do
of the company and in ensuring a good monitoring system within
the business;

Compliance Status
Not
Complied
complied
5(1)(c) The Audit Committee shall be responsible to the Board; the duties
√ Do
of the Audit Committee shall be clearly set forth in writing.
5(2) Constitution of the Audit Committee
5(2)(a) The Audit Committee shall be composed of at least 3 (three)
√ In Practice
members;
5(2)(b) The Board shall appoint members of the Audit Committee
who shall be non-executive directors of the company excepting
√ Do
Chairperson of the Board and shall include at least 1 (one)
independent director;
5(2)(c) All members of the audit committee should be “financially
literate” and at least 1 (one) member shall have accounting or
√ Do
related financial management background and 10 (ten) years of
such experience;
5(2)(d) When the term of service of any Committee member expires or
there is any circumstance causing any Committee member to be
unable to hold office before expiration of the term of service, thus
making the number of the Committee members to be lower than
No such
the prescribed number of 3 (three) persons, the Board shall appoint
instance
the new Committee member to fill up the vacancy immediately
or not later than 1 (one) month from the date of vacancy in the
Committee to ensure continuity of the performance of work of the
Audit Committee;
5(2)(e) The company secretary shall act as the secretary of the Committee; √ -
5(2)(f) The quorum of the Audit Committee meeting shall not constitute
√ -
without at least 1 (one) independent director.
5(3) Chairperson of the Audit Committee -
5(3)(a) The Board shall select 1 (one) member of the Audit Committee
to be Chairperson of the Audit Committee, who shall be an √ -
independent director;
5(3)(b) In the absence of the Chairperson of the Audit Committee, the
remaining members may elect one of themselves as Chairperson
for that particular meeting, in that case there shall be no problem
√ -
of constituting a quorum as required under condition No. 5(4)(b)
and the reason of absence of the regular Chairperson shall be duly
recorded in the minutes.
5(3)(c) Chairperson of the Audit Committee shall remain present in the Chairperson
Annual General Meeting (AGM): of Audit
√ committee was
present at the
last AGM.

Compliance Status
Not
Complied
complied
5(4) Meeting of the Audit Committee
5(4)(a) The Audit Committee shall conduct at least its four meetings in In practice.
a financial year. √ Five meetings
conducted
5(4)(b) The quorum of the meeting of the Audit Committee shall be
constituted in presence of either two members or two third of the
√ -
members of the Audit Committee, whichever is higher, where
presence of an independent director is a must.
5(5) Role of Audit Committee
5(5)(a) Oversee the financial reporting process; √ -
5(5)(b) Monitor choice of accounting policies and principles; √ -
5(5)(c) Monitor Internal Audit and Compliance process to ensure that
it is adequately resourced, including approval of the Internal
√ -
Audit and Compliance Plan and review of the Internal Audit and
Compliance Report;
5(5)(d) Oversee hiring and performance of external auditors; √ -
5(5)(e) Hold meeting with the external or statutory auditors for review of
the annual financial statements before submission to the Board for √ -
approval or adoption;
5(5)(f) Review along with the management, the annual financial
√ -
statements before submission to the Board for approval;
5(5)(g) Review along with the management, the quarterly and half yearly
√ -
financial statements before submission to the Board for approval;
5(5)(h) Review the adequacy of internal audit function; √ -
5(5)(i) Review the Management’s Discussion and Analysis before
√ -
disclosing in the Annual Report;
5(5)(j) Review statement of all related party transactions submitted by
√ -
the management;
5(5)(k) Review Management Letters or Letter of Internal Control
√ -
weakness issued by statutory auditors;
5(5)(l) Oversee the determination of audit fees based on scope and
magnitude, level of expertise deployed and time required for
√ -
effective audit and evaluate the performance of external auditors;
and

Compliance Status
Not
Complied
complied
5(5)(m) Oversee whether the proceeds raised through Initial Public
Offering (IPO) or Repeat Public Offering (RPO) or Rights Share
Offer have been utilized as per the purposes stated in relevant
offer document or prospectus approved by the Commission:
Provided that the management shall disclose to the Audit

Committee about the uses or applications of the proceeds
by major category (capital expenditure, sales and marketing
Not appicable
expenses, working capital, etc.), on a quarterly basis, as a part of
their quarterly declaration of financial results:
Provided further that on an annual basis, the company shall

prepare a statement of the proceeds utilized for the purposes
other than those stated in the offer document or prospectus for
publication in the Annual Report along with the comments of the
Audit Committee.
5(6) Reporting of the Audit Committee
5(6)(a) Reporting to the Board of Directors
5(6)(a)(i) The Audit Committee shall report on its activities to the Board. √ -
5(6)(a)(ii) The Audit Committee shall immediately report to the Board on
-
the following findings, if any:
5(6)(a)(ii)(a) Report on conflicts of interests; Not appicable
5(6)(a)(ii)(b) Suspected or presumed fraud or irregularity or material defect
identified in the internal audit and compliance process or in the Do
financial statements;
5(6)(a)(ii)(c) Suspected infringement of laws, regulatory compliances including
Do
securities related laws, rules and regulations; and
5(6)(a)(ii)(d) Any other matter which the Audit Committee deems necessary
Do
shall be disclosed to the Board immediately;
5(6)(b) Reporting to the Authorities
If the Audit Committee has reported to the Board about anything
which has material impact on the financial condition and results of
operation and has discussed with the Board and the management
that any rectification is necessary and if the Audit Committee No such
finds that such rectification has been unreasonably ignored, the instance
Audit Committee shall report such finding to the Commission,
upon reporting of such matters to the Board for three times or
completion of a period of 6 (six) months from the date of first
reporting to the Board, whichever is earlier.

Compliance Status
Not
Complied
complied
5(7) Reporting to the Shareholders and General Investors
Report on activities carried out by the Audit Committee, including
any report made to the Board under condition No. 5(6)(a)(ii)
√ -
above during the year, shall be signed by the Chairperson of the
Audit Committee and disclosed in the annual report of the issuer
company.
6 Nomination and Remuneration Committee (NRC).
6(1)(a) The company shall have a Nomination and Remuneration Not in practice.
Committee (NRC) as a subcommittee of the Board;
6(1)(b) The NRC shall assist the Board in formulation of the nomination Do
criteria or policy for determining qualifications, positive attributes,
experiences and independence of directors and top level executive
as well as a policy for formal process of considering remuneration
of directors, top level executive;
6(1)(c) The Terms of Reference (ToR) of the NRC shall be clearly set forth Do
in writing covering the areas stated at the condition No. 6(5)(b).
6(2) Constitution of the NRC
6(2)(a) The Committee shall comprise of at least three members including Do
an independent director;
6(2)(b) All members of the Committee shall be non-executive directors; Do
6(2)(c) Members of the Committee shall be nominated and appointed by Do
the Board;
6(2)(d) The Board shall have authority to remove and appoint any member Do
of the Committee;
6(2)(e) In case of death, resignation, disqualification, or removal of any Do
member of the Committee or in any other cases of vacancies, the
board shall fill the vacancy within 180 (one hundred eighty) days
of occurring such vacancy in the Committee;
6(2)(f) The Chairperson of the Committee may appoint or co-opt any Do
external expert and/or member(s) of staff to the Committee as
advisor who shall be non-voting member, if the Chairperson
feels that advice or suggestion from such external expert and/or
member(s) of staff shall be required or valuable for the Committee;
6(2)(g) The company secretary shall act as the secretary of the Committee; Do
6(2)(h) The quorum of the NRC meeting shall not constitute without Do
attendance of at least an independent director;
6(2)(i) No member of the NRC shall receive, either directly or indirectly, Do
any remuneration for any advisory or consultancy role or
otherwise, other than Director’s fees or honorarium from the
company.
6(3) Chairperson of the NRC

Compliance Status
Not
Complied
complied
6(3)(a) The Board shall select 1 (one) member of the NRC to be Do
Chairperson of the Committee, who shall be an independent
director;
6(3)(b) In the absence of the Chairperson of the NRC, the remaining Do
members may elect one of themselves as Chairperson for
that particular meeting, the reason of absence of the regular
Chairperson shall be duly recorded in the minutes;
6(3)© The Chairperson of the NRC shall attend the annual general Do
meeting (AGM) to answer the queries of the shareholders:
Provided that in absence of Chairperson of the NRC, any other

member from the NRC shall be selected to be present in the
annual general meeting (AGM) for answering the shareholder’s
queries and reason for absence of the Chairperson of the NRC
shall be recorded in the minutes of the AGM.
6(4) Meeting of the NRC
6(4)(a) The NRC shall conduct at least one meeting in a financial year; Do
6(4)(b) The Chairperson of the NRC may convene any emergency Do
meeting upon request by any member of the NRC;
6(4)(c) The quorum of the meeting of the NRC shall be constituted in Do
presence of either two members or two third of the members of the
Committee, whichever is higher, where presence of an independent
director is must as required under condition No. 6(2)(h);
6(4)(d) The proceedings of each meeting of the NRC shall duly be Do
recorded in the minutes and such minutes shall be confirmed in
the next meeting of the NRC.
6(5) Role of the NRC
6(5)(a) NRC shall be independent and responsible or accountable to the Not in practice
Board and to the shareholders;
6(5)(b) NRC shall oversee, among others, the following matters and make Do
report with recommendation to the Board:
6(5)(b)(i) formulating the criteria for determining qualifications, positive Do
attributes and independence of a director and recommend a policy
to the Board, relating to the remuneration of the directors, top
level executive, considering the following:
6(5)(b)(i)(a) the level and composition of remuneration is reasonable and Do
sufficient to attract, retain and motivate suitable directors to run
the company successfully;
6(5)(b)(i)(b) the relationship of remuneration to performance is clear and meets Do
appropriate performance benchmarks; and

Compliance Status
Not
Complied
complied
6(5)(b)(i)(c) Remuneration to directors, top level executive involves a balance Do
between fixed and incentive pay reflecting short and long-term
performance objectives appropriate to the working of the company
and its goals;
6(5)(b)(ii) Devising a policy on Board’s diversity taking into consideration Do
age, gender, experience, ethnicity, educational background and
nationality;
6(5)(b)(iii) Identifying persons who are qualified to become directors and who Do
may be appointed in top level executive position in accordance
with the criteria laid down, and recommend their appointment and
removal to the Board;
6(5)(b)(iv) Formulating the criteria for evaluation of performance of Do
independent directors and the Board;
6(5)(b)(v) Identifying the company’s needs for employees at different Do
levels and determine their selection, transfer or replacement and
promotion criteria; and
6(5)(b)(vi) Developing, recommending and reviewing annually the Do
company’s human resources and training policies;
6(5)(c) The company shall disclose the nomination and remuneration Do
policy and the evaluation criteria and activities of NRC during the
year at a glance in its annual report.
7(1) External or Statutory Auditors.
7(1) The issuer company shall not engage its external or statutory
auditors to perform the following services of the company,
namely:
7(1)(i) appraisal or valuation services or fairness opinions; √ -
7(1)(ii) Financial information systems design and implementation; √ -
7(1)(iii) Book-keeping or other services related to the accounting records √ -
or financial statements;
7(1)(iv) Broker-dealer services; √ -
7(1)(v) Actuarial services; √ -
7(1)(vi) Internal audit services or special audit services; √ -
7(1)(vii) Any service that the Audit Committee determines; √ -
7(1)(viii) Audit or certification services on compliance of corporate √ -
governance as required under condition No. 9(1); and
7(1)(ix) Any other service that creates conflict of interest. √ -
7(2) No partner or employees of the external audit firms shall possess √
any share of the company they audit at least during the tenure of
-
their audit assignment of that company; his or her family members
also shall not hold any shares in the said company:

Compliance Status
Not
Complied
complied
7(3) Representative of external or statutory auditors shall remain √
present in the Shareholders’ Meeting (Annual General Meeting
-
or Extraordinary General Meeting) to answer the queries of the
shareholders.
8 Maintaining a website by the Company.
8(1) The company shall have an official website linked with the √ In Practice
website of the stock exchange.
8(2) The company shall keep the website functional from the date of √ -
listing.
8(3) The company shall make available the detailed disclosures on its √ -
website as required under the listing regulations of the concerned
stock exchange(s).
9 Reporting and Compliance of Corporate Governance.
9(1) The company shall obtain a certificate from a practicing √
Professional Accountant or Secretary (Chartered Accountant or
Cost and Management Accountant or Chartered Secretary) other
than its statutory auditors or audit firm on yearly basis regarding In Practice
compliance of conditions of Corporate Governance Code of the
Commission and shall such certificate shall be disclosed in the
Annual Report.
9(2) The professional who will provide the certificate on compliance √ -
of this Corporate Governance Code shall be appointed by the
shareholders in the annual general meeting.
9(3) The directors of the company shall state, in accordance with √
the Annexure-C attached, in the directors’ report whether the
company has complied with these conditions or not. -

IBBL’s approach to INTEGRATED REPORTING
Our Integrated Reporting promotes a more cohesive and efficient approach that aims to improve the quality
and connectivity of information, enhance accountability and stewardship for the broad base of capital capitals
(financial,manufactured,intellectual,human, socialandrelationship,andnatural) Supportsintegratedthinking,decision-makingan
dactionsthatfocusonthevalue creation over the short, medium and long term. Our integrated report is a concise communication
about how an organization’s strategy, governance, performance and prospects aligned with business model. It encompasses the
efforts we have undertaken towards contributing to economic progress, environmental sustainability and social well-being for
a better Bangladesh.
Guiding Principles of IBBL for preparation and presentation of an integrated report

Strategic focus and future orientation provides insight into the organization’s strategy, and how it relates to the organization’s
ability to create value in the short, medium and long term, and to its use of and effects on the capitals.
Connectivity of information shows a holistic picture of the combination, interrelatedness and dependencies between the
factors that affect the organization’s ability to create value over time.
Stakeholder relationships provides insight into the nature and quality of theorganization’s relationships with its key
stakeholders, including how and to what extent the organization understands, takes into account and responds to their legitimate
needs and interests.
Materiality discloses information about matters that substantively affect the organization’s ability to create value over the
short, medium and long term Conciseness.
Reliability and completeness includes all material matters, both positive and negative, in a balanced way and without material
error.
Consistency and comparability our report presented on a basis that is consistent over timeand in a way that enables comparison
with other organizations to the extent it is material to the organization’s own ability to create value over time.
Elements that are linked with our integrating Reporting
Organizational overview and external environ- Integrated report clearly outlines the purpose, mission and vision and provides essential context of culture,
ment ethics and values, ownership and operating structure, principal activities and markets, competitive landscape
and market positioning. This report also focuses the following 05 (five) major areas in its operations:
Sustainable business relationship, Financial inclusion through fintech solutions, • Happy corporate
environment, Financial excellence. Upholding ethical and moral values. External environment:
Significant factors affecting the external environment include aspects of the legal, commercial, social,
environmental and political context that affect ability to create value in the short, medium or long term
directly or indirectly. Legitimate needs and interests of key stakeholders, macro and micro economic
conditions, market forces, speed and effect of technological change and societal issues are also the
components of external environment.
Governance This report provides insight about IBBL’s leadership structure, specific processes used to make strategic
decisions and to establish and monitor the culture of IBBL, particular actions of those charged with
governance direction of IBBL, approach to risk management, culture, ethics and values are reflected in
its operations.
Business Model An integrated report is a system of transforming inputs, through its business activities, into outputs
and outcomes that aims to fulfill the organization’s strategic purposes and create value over the short,
medium and long term. A business model describes the operating process of the bank.
Risks and Opportunities Integrated report identifies the key risks and opportunities that are specific to IBBL. This can include
identifying the specific source of risks and opportunities, which can be internal, external or a mix of the
two. External sources include those stemming from the external environment. Internal sources include
those stemming from our business activities.
Strategy and resource allocation It identifies the short, medium and long-term strategic objectives of the bank. This includes linkage
between our strategy and resource allocation plans and the information covered by other elements.
Performance It contains qualitative and quantitative information about quantitative indicators with respect to targets,
risks and opportunities, explaining their significance, their implications and the methods and assumptions
used in compiling them, effects on the capitals including material effects on capitals up and down the
value chain, the state of key stakeholder relationships, the linkages between past and current performance
and the outlook of the bank.
Outlook Integrated report highlights anticipated changes over time and provides information, built on sound and
transparent analysis about our expectations that are likely to be encountered.
Basis of Preparation and Presentation The report describe the basis of preparation and presentation of reporting process and significant
frameworks and methods used to quantify or evaluate material matters which include disclosures about
the capitals, time frames for short, medium and long term, aggregation and disaggregation.

VALUECREATION Matrix:
EXTERNALENVIRONMENT
PURPOSE, MISSION, VISION
FINANCIAL FINANCIAL
RISKS AND STRATEGY AND
OPPORTUNITIES RESOURCE ALLOCATION
MANUFACTURED BUSINESSMODEL MANUFACTURED
INTELLECTUAL INTELLECTUAL
BUSINESS
ACTIVITIES
OUTCOMES
(POSITIVE
ANDNEGATIVEOVER
INPUTS THESHORT
MEDIUMANDLONG
TERM)
OUTPUTS
HUMAN HUMAN
SOCIAL AND SOCIAL AND

RELATIONSHIP PERFORMANCE OUTLOCK RELATIONSHIP
NATURAL NATURAL
The capitals of IBBL

- Loyalties and motivations for improving processes, goods
Our glorious success and growth depends on deployment of and services, including their ability to lead, manage and
various forms of capital. In the IR Framework, the capitals collaborate.
comprise financial, manufactured, intellectual, human, social • Social and relationship capital–
and relationship, and natural, although which is describe in
different part and different form of the annual report. Relate within and between communities, groups of
stakeholders and other networks, and the ability to share
• Financial capital–The pool of funds that is: information to enhance individual and collective well-being.
- Available to an organization for using the provision of Social and relationship capital includes:
services - Shared norms, and common values and behaviors
- Obtained through financing, such as debt, equity, or - Key stakeholder relationships, and the trust and
generated through operations or investments. willingness to engage that an organization has developed
• Manufactured capital – Manufactured physical objects (as and
distinct from natural physical objects) that are available to Strives to build and protect with external stakeholders
an organization for using in the production of goods or the
provision of services, including: - Intangibles associated with the brand and reputation that
an organization has developed
- Buildings - An organization’s social license to operate.
- Equipment
• Natural capital–All renewable and non-renewable
• Intellectual capital – Organizational, knowledge-based environmental resources and processes that provide
intangibles, including: goods or services that support the past, current or future
- Intellectual property, such as patents, copyrights, prosperity of an organization. It includes:
software, rights and licenses
- “Organizational capital” such as knowledge, systems, - Air, water, land, minerals and forests
procedures and protocols.
- Bio diversity and eco-system health.
• Human capital–People’s competences, capabilities, and
experience, and motivations to innovate, including: Not all capitals are equally relevant or applicable to all
- Alignment with and support for an organization’s organizations. While most organizations inter act with all
governance framework, risk management approach, and capitals to some extent, these interactions might be relatively
ethical values minor or so indirect that they are not sufficiently important to
- Ability to understand, develop and implement an include in the integrated report.
organization’s strategy

Entities/stakeholders aligned with the reporting boundary
REPORTING BOUNDARY FOR THE INTEGRATED REPORT (RI

SKA. OPPORTUNITIES AND OUTCOMES)
FINANCIAL REPORTING
ENTITY(CONTROL AND SIGN IFIVANTINFLUE
Parent: IBBL
Subsidiary: IBSL Subsidiary: IBCML
BUSINESS
EMPLOYEES CUSTOMERS SUOOLIERS COMMUNITIES OTHERS
PARTNERS
Scope and areas also covered in integratng Reporting Sl. Description of

External Assurance
No. the Report
Integrated Reporting also covers the integrated reporting
checklist issued by the Institute of Chartered Accountants of 1. M/s. Howlader Yunus & Co.,
Bangladesh (ICAB). In measuring the Bank operations and Chartered Accountants
financial performance, financial information so disclosed has Financial
1 2. M/s. ACNABIN.,
been extracted from the Audited Financial Statements for Statements
the Financial Year ended 2020 with relevant comparative
information. The financial statements are prepared complying
with the requirements of: Corporate M/s. Mohammad Sanaullah & Associates,
2
Governance Chartered Accountants
 International Financial Reporting Standard (IFRS); M/s. Hoda Vasi Chowdhury & Co.,
3 Provident Fund
 Standard on Accounting and Auditing Organization for
Islamic Financial Institutions(AAOIFI); M/s. K.M. Hasan & Co.,
4 Gratuity Fund
 Bank Company Act 1991 (as amended);
5 Credit Rating Emerging Credit Rating Limited
 Companies Act 1994; Superannuation M/s. Rahman Mostafa Alam & Co., Chartered
6
Fund Accountants
 Securities and Exchange Rules 1987;
 The Income Tax Ordinance 1984; Comparability
All the information presented in this report is on the same
 Value added and Supplimentary duty act-2012 basis as the report of 2021 in terms of the entities covered,
the measurement methods applied and time frames used. The
 Relevant rules & regulations of Bangladesh Bank; information provided covers all material matters relating to
business strategy, risk and areas of critical importance to
 Other applicable laws and regulations of the land. our stakeholders. The structure of the report has been further
developed as part of our continuous focus on improving
The disclosure of non-financial information has been extracted communication to our stakeholders.
from internally-maintained records reported for the statement
of financial position, unless otherwise stated that it has been Availability of the Annual Report
extracted from a reliable source.
Annual Report for the Year 2022 of the Bank has already
sent to the shareholder’s e-mail address available in their
External assurance Provider beneficial owner (BO) accounts. Shareholder may collect the
printed copy of the annual report from the Registered Office
The bank has obtained external assurance on the following or Share & Bond Division and the AGM venue if requires in
reports in the reporting period under consideration: writing beforehand. The report has also been made available
in the website http://www.islamibankbd.com

RISK
MANAGEMENT

US ambassador pays visit to IBBL stall in US Trade Show 2022
Report of Risk Management Committee

Report of the Risk Management Committee The Company Secretary of the Bank acts as the Secretary
of the Risk Management Committee of the Board as per
In compliance to the BRPD Circular No. 11 dated 27.10.2013,
regulatory directives.
subsequent directives and Guidelines of Bangladesh Bank,
the Risk Management Committee was first constituted Role of the Risk Management Committee
on 2013 by the Board of Directors comprising of highly
skilled professionals in risk management with the objective In accordance with the circulars and guidelines of Bangladesh
of following the Central Bank’s directives, monitoring risk Bank and other best practices in the national and international
management issues, risk related policies, building a strong Banking companies, the Committee provides oversight and
risk management culture to achieve the bank’s objectives. The advice to the Board in relation to the current and potential
Committee was reconstituted from time to time as required risk exposures and future risk strategy, also provides advices,
by inclusion of more competent persons among its members suggestions, direction and guidance to the management based
aiming to strengthening its overall functions. Finally, the on the Committee’s findings on identified and potential risks
current risk management committee has been reconstituted so as to mitigate identified and potential risks. Key functions
with the following eminent persons with long experience in of the Committee, in addition to those noted above, include:
risk management, highly skilled, professional and leadership  Formulating and implementing appropriate strategies for
qualities; risk assessment and its control. The Committee reviews
the risk management policy of the bank and modifies/
Status in the amends the same as per requirement;
Sl. Name of the Members
Committee  Ensuring suitable organizational structure of the bank
Major General (Retd.) Engr. Abdul Matin Chairman for controlling risk and compliance of risk management
Dr. Areef Suleman Member guidelines relating to Investment Risk, Assets Liability
Management Risk, Foreign Exchange Risk, Internal
Professor Dr. Md. Sirajul Karim Member
Control and Compliance Risk, Money Laundering Risk
Mohammad Joynal Abedin Member and Information and Communication Technology Risk.
Professor Dr. Qazi Shahidul Alam Member The Committee has formed separate committees at the
management level and also ensured monitors their activities;

Risk Management
 Reviewing the risk management policy and guidelines  Progress report on Sustainable Finance Activity of the
of the bank at least once a year, making necessary bank on a quarterly basis;
modifications as per requirement;
 Half-yearly performance report of the bank on Anti-
 Reviewing the system regarding preservation of Money Laundering (AML) and Combating the Financing
information and reporting of the Management; in Terrorism (CFT);
 Monitoring the overall implementation of risk management  Review of the position of asset quality, investment policy
policy of the bank and also examining whether remedial and classified investment of the bank;
measures have been taken for minimization of credit risk,
market risk and operational risk of the bank;  Monthly summary report of new, renewed, enhanced,
regretted investment proposals, rescheduled investment,
 Reviewing different decisions taken by the different overdue and status of large investment;
risk committees formed at management level and
communicating the same to the Board on regular basis; and The Risk Management Committee is playing significant role
in building a strong risk culture within the Bank and is alert
 Ensuring compliance of different directives/guidelines as
to all existing and potential internal-external risks and simul-
issued by Regulators from time to time.
taneously guides the management and informs the Board of
directors about risks and assists in ensuring efficient risk man-
Meetings of the Committee & Key Focus Areas agement of the bank. The Committee acknowledges the sin-
in 2022 cere cooperation received from the Management in carrying
out the work. We are committed to create a strong foundation
In 2022, the Risk Management Committee had total of 6
of proper risk management towards achieving sustainable re-
meetings against the regulatory requirement of holding at least
sult for the Bank.
4 meetings in a year. At those meeting total 52 memorandums
on different risk issues were discussed comprehensively
resulting in taking 106 significant decisions were taken all
of those also were implemented by the Management under
close supervision of the Committee. The proceedings of the
Risk Management Committee meetings were also reported
timely and regularly to the Board of Directors as well as to Major General (Rtd.) Eng. Abdul Matin
Bangladesh Bank to comply with the regulatory requirement.
afwc, psc, ptsc, FIEB, MIEEE, MDS, MWS
The major areas focused on by the Committee during the year
include: Chairman, Risk Management Committee
 Review of the Risk Appetite Statement for the year 2022;
 Review of the Risk Management Guidelines and Core
Risk Management Guidelines;
 Performance of the Risk Management Coordination
Committee (RMCC), ensuring at least 12 meetings in
a year, where all the risk-related issues were discussed,
decisions were taken and implementation there against
was ensured in due course;
 Stress Testing Reports on a quarterly basis & placing the
same before the Board;
 The Internal Capital Adequacy Assessment Process
(ICAAP) Report;
 Implementation status of the decisions taken by the Risk
Management Committee along with the follow-up report
of the previous pending issues;
 Continuous review and monitoring of the top 20
investment clients;
 Review report on risk management guidelines and
effectiveness of risk management functions of IBBL for
the year 2021;

Risk Management
Risk Management Report

Risk Management Culture
In the IBBL perspective, Risk Management is a process, car-
ried out by the Board of Directors, Risk Management Com- IBBL adopts, at least but not limited to, the following points
mittee of the Board, Management and Chief Risk Officer with to propagate risk culture across the Bank:
his team, applied in strategy setting and across the organiza-
tion, designed to identify potential risk, assessing, evaluating  The Board and the Management promote a responsible
and mitigation of risks i.e., taking precautionary measures to approach to risk;
reduce the risk, and manage risk to be within the risk appetite,  The responsibility of risk management is fully vested in
to provide reasonable assurance regarding the achievement of the Board of Directors, which in turn delegates this to
organizational objectives. senior management;
 The risk management officials enjoy sufficient
Risk Management Principles & Policies professional independence and stature;
In IBBL, there are approved policies and procedures covering  The Bank pays close attention to both quantifiable and
all the risk areas of business operations to ensure proper ad- unquantifiable risks;
dressing of risks and to safeguard there against. Risk Manage-  The Bank’s management ensures that risk and risk
ment Principles and Policies in IBBL are as follows: management awareness is enshrined throughout the
 The Bank identifies and manages risks inherent in all of Bank; and
its products, services and activities. It ensures that the  The Bank avoids any business where the associated risks
risks of products and activities new to them are subject cannot be objectively assessed or managed.
to adequate procedures and controls before being intro-
duced or undertaken, and approved in advance by the Risk Management Process
Board or its appropriate committee;
Risk management is an iterative process that, with each cycle,
 IBBL develops and utilizes internal risk rating systems in can contribute progressively to organizational improvement
managing all of its risks provided the rating system is in by prodding management with a greater insight into risks and
line with the regulatory instructions and consistent with impact.
the nature, size and complexity of the Bank’s activities;
 In IBBL, risk management is carried out in a decentral- Steps of Risk management process in Banking
ized manner; it is considered a primary responsibility Organizations
of the CEO, CRO, Risk Management Wing, different
Wings, Divisions, operating units and business units;  Step 1: Communicate and Consult
 The risk policy is geared, in particular, towards both fi-  Step 2: Establish the context
nancial and non-financial risks. The Board of Directors  Step 3: Identify the risks
determines the risk strategy and overall risk appetite and  Step 4: Analyze the risks
defines accountabilities, reporting structures, documenta-
tion and management of identified risks, and thresholds;  Step 5: Evaluate the risks
 IBBL establishes and enforces internal controls and other  Step 6: Treat the risks
practices to ensure that exceptions to policies, procedures  Step 7: monitor the risks
and limits are reported promptly to the appropriate level
of management;
 The risk management policy permits risk-taking
authorities along with assigned responsibilities consistent
with the expertise of bank personnel, preferably having
an in-depth understanding of risk management principles;
 Policy exceptions are properly approved, having formal
procedures to report how and why exceptions have
occurred, and how they have been resolved; and
 IBBL is required to manage risks and submit risk reports
to Bangladesh Bank as per instructions.

Risk Management
Risk Management Framework

The risk management framework of the Bank is shown as under:
Board of Directors CEO/MD
Risk Management Committee

Risk Management
Coordination
Chief Risk Officer (CRO)
Committee
(AMD/DMD/SEVP)
(RMCC)
Deputy CRO (SVP/VP)
Investment Risk Market Risk Inquidity Risk Operational Risk Risk Research and
Market Risk Policv development
ICC Risk ICT Risk ML Risk

Basel
Implementation
Unit
Three Lines of Defense

The Bank’s risk management framework is based on Three Lines of Defense model which is the industry standard and may be
represented as follows:
1st Line of Defense 2nd Line of Defense 3rd Line of Defense
Day to day Risk Management & Risk Oversight Policy & Independent Assurance
Management Control Methodology
 Business Units (Branches)  Board’s Risk Management  Audit Committee

Committee
 Support Functions (Zones,  Internal Audit
Divisions)  Chief Risk Officer
 Risk Management Wing
 Operational Risk Management

Committees

Risk Management
Board’s Oversight on Risk Management Core Risk Management

The overall responsibility and oversight of Risk Management Following the guidelines of the Central Bank, IBBL has
of the Bank rest with the Board of Directors (BOD). The designed and implemented its Risk Management Guidelines
Board is responsible for approving risk appetite which is and formed 06 (six) Core Risk Management Committees for
the level of risk. The Bank desires to ascertain in quest of its conducting separate meetings at least monthly. The major
business objectives. It regularly overviews the risk exposures concerns of the committees are as follows:
and key controls and thereby oversees the management of the (i) Investment Risk Management Committee supervises and
most significant risks. The Board monitors the “tone at the monitors investment concentration, Internal Investment
top,” risk culture, and oversees emerging and strategic risks. Risk Rating System (IIRRS/ ICRRS), corporate clients
rating, non-performing investment, residual risk against
Risk Governance at Management Level investment, provision against classified investment,
investment mix, asset quality etc.
IBBL has a strongly disciplined risk governance structure
managed by an experienced senior team that enables the Bank (ii) Asset Liability Management Committee (ALCO) looks
to manage the risks continuously. Bank’s Risk Management after the asset-liability risk, liquidity risk, Investment
Deposit Ratio (IDR), Net Stable Funding Ratio (NSFR),
Coordination Committee (RMCC) focuses on risk governance
deposit mix, investment mix, gap analysis etc.
and provides a forward-looking view of risks and their
mitigation. The RMCC meeting, chaired by the CRO, is (iii) Foreign Exchange Risk Management Committee
arranged on monthly-basis. oversees foreign exchange risk, treasury, net open
position, import & export business, dealing room
operations, anti-money laundering aspects in foreign
Action Plan for the year 2023 exchange transactions, remittance etc.
The global economy remains fragile going into 2023.
Uncertainties abound due to an unprecedented confluence (iv) Internal Control and Compliance Risk Management
of factors—Russia’s invasion of Ukraine, supply chain Committee assesses and mitigates the risks related
disruptions, and the meteoric rise in inflation across the world. to compliance with regulatory requirements,
Under this backdrop, RMW has got the following ideas to internal checking system, lapses, fraud, forgeries,
be addressed in 2023 to develop a strong risk management misappropriation, defalcation, violations of the set rules
culture in IBBL: etc.
(v) Money Laundering Risk Management Committee
 Reviewing and upgrading the “Risk Management ensures anti money laundering activities: STR, CTR,
Guidelines for IBBL” and the core Risk Management KYC, TP, Sanction Screening, central on-boarding and
Guidelines/policies of the Bank; regulatory compliances.
 Arranging training for the employees of all levels to create
awareness and to provide clear and distinct ideas about (vi) Information & Communication Technology Risk
risk management; Management Committee monitors and supervises the
risks related to data security, physical security, network
 Involving the employees at the branch level/operational
security, disaster recovery, fraud, forgery, Standard
level for identifying, analyzing, measuring and finally
Certification of ICT issues, system failure and business
managing risks of the Bank as a collective effort;
continuity etc.
 Strengthening the Branch Taskforce Committee to monitor
regular clients so that any adverse movement of the clients Relationship of Risk Management with
can be detected earlier and necessary action can be taken;
Other Units
 Diversifying risk by portfolio management of the Bank,
including its general investment; Risk management activities are directly or indirectly related
with different units of the Bank. The following flow diagram
 Conducting monitoring for compliance with the guidelines shows the relationship in details.
of six core risks to secure better risk rating and ensuring
proper risk management reporting as per regulatory
requirement;
 Continuous review and control of the Risk Appetite
Statement (RAS) of the Bank;
 Reviewing the risks associated with agent banking,
including Sub Branches; and
 Implementing the key risk indicators (KRI) system by
maintaining the Risk Register.

Risk Management
Board’s RMC
MD & CEO
Enquiries
Analysis
Business Units Reporting
Regulators
Reporting CRO
& Risk
RMW Summary
Enquiries Rating
Auditors Agencies
Reporting
RMCC RWA
Basel Unit and
Report ICAAP SRP Team
Basel Unit
Stress Testing Recommend
Recommend
Report &
Analysis
Financial Budget
Administration Operations
Core Risk
Division Capital Allocation Committees
Reporting
The diagram shows that Risk Management Wing (RMW) is Supervisory Review Process
directly involved with the total risk management process of As per Bangladesh Bank guidelines, a Supervisory Review
the Bank. Process (SRP) Team has been formed for adequate supervision
Basel Accord of capital functions and risks. The key principle of SRP is that
To implement Basel-III guidelines, three committees have banks have a process for assessing overall capital adequacy
been formed namely (i) Basel Unit, (iii) Operational Layer in relation to their risk profile and a strategy for maintaining
Committee of SRP Team and (ii) Supervisory Review Pro- their capital at an adequate level.
cess Team (SRP) Team.
Internal Capital Adequacy Assessment Process (ICAAP)
Implementation Status of Basel-III
ICAAP includes regulations of the bank’s own supervisory
IBBL has successfully implemented Basel-III Accord with- review of capital positions aiming to reveal whether it has
in the stipulated time given by Bangladesh Bank i.e., within prudent risk management and sufficient capital to cover its
2019 and maintains the same with satisfactory level. The lat- risk profile. It ensures that the Bank maintains an amount of
est status of the requirements of Basel-III is shown below: capital for additional risk that was not covered under Pillar-I
of Basel-III.
Regulatory
Sl. Parameters Position of IBBL
Requirement
1 Minimum Common Equity Tier-1 (CET-1) Capital Ratio 4.50% 4.66%
2 Capital Conservation Buffer (CCB) 2.50% 2.51%
3 Minimum CET-1 plus Capital Conservation Buffer 7.00% 7.17%
4 Minimum T-1 Capital Ratio plus Capital Conservation Buffer 8.50% 8.51%
5 Minimum Total Capital Ratio 10.00% 10.03%
6 Minimum Total Capital plus Capital Conservation Buffer 12.50% 12.54%
7 Liquidity Coverage Ratio (LCR) ≥ 100% 82.90%
8 Net Stable Funding Ratio (NSFR) >100% 105.02%

Risk Management
Herbal Product Factory financed by IBBL
Stress Testing Investment Risk Management

Stress testing is an important risk management tool that In IBBL, investment risk exposure was 88.99% in 2020,
provides an indication of how much capital might be needed 89.42% in 2021 and 90.32 in 2022 as per Guidelines on
to absorb losses in different stressed situations. IBBL has a RBCA 2014. Thus investment risk is the key factor of IBBL’s
rigorous and comprehensive stress-testing program in place. risk management for determination of capital requirement,
The Bank conducts periodical stress tests and assesses stress profitability, liquidity and many other risk elements involved
on the capital both giving individual and combined shocks on therein. IBBL handles this risk through a framework that sets
different aspects. out policies and procedures covering its measurement and
management.
Risk Appetite
Risk appetite describes the types and quantum of risks that the Asset-Liability Management Risk
bank is prepared to take in executing its strategy and sets out IBBL has a dedicated committee named Asset-Liability
the key business initiatives and probable financial effects of Management Committee (ALCO) comprising the top
those initiatives. It is the maximum amount and type of risks Executives of the Bank to make important decisions related
that the Bank is willing to assume in pursuit of its strategy. to the risks associated with Balance Sheet, Liquidity & Profit
Rate of the Bank. The committee generally meets at least
Implementation of Core Risk Management once in a month and reviews the Asset-Liability Management
Guidelines and other specific risks (ALM) Manual and its components on a regular basis.
Bangladesh Bank has issued 06 (six) core risk guidelines,
Liquidity Risk
Guidelines on Profit Rate Risk in the Banking Book (PRRBB)
and Guidelines on Country Risk Management (GCRM) that In Bangladesh, Sharia’h based money market is yet to be
provide concepts, methods and processes with regards to flourished, and is still in the way of development. Being the
the respective risk areas. IBBL follows those guidelines and Sharia’h based bank, IBBL cannot lend or borrow money
also reviews/ updates them on regular basis & gets approval from the conventional money market. As such, it remains
from the Board. Apart from the above, there are some other concerned and vigilant regarding liquidity risk. IBBL
specific risks that are covered by SRP Guidelines and RBCA continuously monitor the liquidity ratios and periodically
Guidelines of Bangladesh Bank. IBBL also manages those conducts GAP and Duration GAP analysis. As on 31.12.2022,
risks. the key liquidity ratios were as under:

Risk Management
Standard IBBL’s ICT Security Risk Management
Sl. Name of the Ratio
Ratio Scenario The Bank has adequately addressed Information &
1 Cash Reserve Ratio (CRR) 4% 5.77% Communication Technology (ICT) Security Risk which
2 Statutory Liquidity Requirement (SLR) 5.50% 6.62% ensures ICT security functions and operations in a more
effective manner. The Bank uses own developed Core
3 Investment Deposit Ratio (IDR) <92% 91.64% Banking Software to perform all types of transactions
4 Liquidity Coverage Ratio (LCR) ≥100% 82.90% including Local/Online/Internet in a secured way.
5 Net Stable Funding Ratio (NSFR) >100% 105.02%
Strategic Risk
Contingency Planning It refers to the risk of a potential earnings downside due to
While it is the Bank’s policy to ensure that it has sufficient revenues and/or costs underperforming plan targets. Strategic
liquidity to meet any emergency at times, it is possible that the Risk may arise from poor strategic decision/positioning,
Bank may experience liquidity problems due to both external failure to execute strategy or lack of effective responses to
and internal conditions. Accordingly, the bank has a liquidity material negative plan deviations caused by either external or
contingency plan in place to overcome such situations. internal factors (including macro, financial and idiosyncratic
drivers).
Foreign Exchange Risk Management
Business Continuity Plan
Foreign Exchange risk is the risk of loss from movements in
cross-currency exchange rates between foreign currencies and A Business Continuity Plan describes how to resume business
from changes in the value of the home or functional currency after a disruption. A business continuity plan endeavors to
against other currencies. The foreign exchange risks of IBBL ensure that critical operations continue to be available. It has
are identified, measured, monitored and controlled through Data center, Disaster Recovery Site and Disaster Recovery
proper market analysis, adherence of different dealing limits System, which are well equipped, designed, managed and
such as daylight, overnight, stop loss limit, off premises monitored by Information & Communication Technology
dealing limit, Management Action Trigger (MAT) and Wing.
counterparty credit/investment limits etc.
Some Specific Risks for Islamic Banking
Internal Control and Compliance Risk Management Being the Sharia’h based bank, IBBL may also face
Internal Control & Compliance (ICC) system of IBBL always some specific risks including Fiduciary Risk, Displaced
plays an active role in mitigating ICC risk and contributes Commercial Risk, Liquidity Risk for lack of non-structured
in the process of maintaining compliance across the Bank. Islamic Financial Market, Sharia’h Compliance Risk.
To develop sound, sustainable and secured growth of the
Bank, there is a separate wing namely Internal Control &
Compliance Wing.
Money Laundering Risk Management

In order to ensure the AML compliance, IBBL is committed
to complying with all the applicable Rules of the Money
Laundering Prevention Act, Anti-Terrorism Act, BFIU
Circulars, FATF Recommendations. The Bank has formed
an independent Central Compliance Committee (CCC)
under the leadership of the Chief Anti Money Laundering
Compliance Officer (CAMLCO) and established a separate
division namely Money Laundering and Terrorist Financing
Prevention Division (MLTFPD).

Risk Management
Capital Plan
Capital Planning is a dynamic and ongoing process of incorporating changes in a bank’s strategic focus, risk tolerance level,
business plan, operating environment, or other factors that materially affect capital adequacy. Capital planning assists the
bank’s policy makers and management to identify risks, minimize the bank’s overall risks, set risk tolerance levels and assesses
strategic choices in longer-term planning. Bangladesh Bank, in line with Basel III recommendations, also emphasized the
capital planning in the Revised Guidelines on Risk Based Capital Adequacy (RBCA) framework.
Fundamental components of sound capital planning process

The capital planning process is tailored with the overall risk, complexity and corporate structure of the Bank. While the content,
extent and depth of the capital planning process may vary, we have an effective capital planning process to address the same in
line with the Basel guideline which include the following:
a) Internal control and governance;
b) Capital policy and risk appetite;
c) Forward-looking view;
d) Management framework for preserving capital.
The purposes and objectives of Capital Planning:

The general purpose of the capital planning process is to ensure current capital adequacy and to plan for future capital needs. The
general objective of this policy is to manage the capital position, not only to ensure compliance with bank regulations but also
to ensure capital adequacy for future bank expansion.
Risk Appetite of IBBL

Islami Bank Bangladesh Limited has determined Risk Appetite for possible measurable risk areas. Risk Appetite expresses
the level of risk that IBBL is willing to assume within the risk capacity in order to achieve business objectives. Risk Appetite
Statement has been approved by the Board of Directors.
Capital Structure
IBBL gives due importance on quality of its capital in order to comply with the adequate capital requirement set by Bangladesh
Bank. IBBL historically maintained sound Tier-1 capital base which has the highest loss absorption capability on-going concern
basis. In addition to common equity Tier-1 capital, we also maintain other types of capital instruments under Tier-2 capital in
order to optimize capital mix and reduce overall costs of capital.
Capital Initiatives
IBBL Manages its capital position proactively in order to meet stringent Basel III capital requirement. In order to strengthen
its capital base, IBBL issued 7 (seven) years ‘IBBL Mudaraba Redeemable Non-Convertible Subordinated Bond’ of
Tk.8, 000 million, out of which Tk. 3,000 million has been subscribed.

Market Discipline: Disclosure on Risk Based
Capital under Basel III as on 31 December 2022
Background
The purpose of Market Discipline in Basel III is to establish more transparent and more disciplined financial market so that
stakeholders can assess the position of a Bank regarding holding of assets and to identify the risks relating to the assets and
capital adequacy to meet probable loss of assets. For the said purpose, this “Disclosures on Risk Based Capital (Basel III)” is
made as per Bangladesh Bank’s Guideline.
A) Scope of Application
Qualitative Disclosures
a) The name of the top corporate entity in the Islami Bank Bangladesh Limited
group to which this guidelines apply:
The Consolidated Financial Statements of the bank include the financial
statements of (i) Islami Bank Bangladesh Limited (including Off-Shore
Banking Units (OBUs). (ii) Islami Bank Securities Limited (iii) Islami
Bank Capital Management Limited
b) An outline of differences on the basis of A brief description of the Bank (Main Operation) and its subsidiaries are
consolidation for accounting and regulatory given below:
purposes, with a brief description of the
entities within the group Islami Bank Bangladesh Limited
(a) that are fully consolidated; Islami Bank Bangladesh Limited was incorporated on March 13, 1983
(b) that are given a deduction treatment; and as a Public Limited Company (Banking Company) with limited liability
under the Companies Act 1994 as interest free Islamic Shari’ah based
(c) that are neither consolidated nor deducted commercial bank and commenced its operation on March 30, 1983 with
(e.g. where the investment is risk - the permission of Bangladesh Bank. The authorized and paid up capital of
weighted). the bank respectively stood at Tk.20,000 million and Tk. 16,099.91 million
as on December 31, 2022. Presently the Bank is operating its business
through Head Office having 394 Branches (including 30 SME/ Agriculture
Branches and 228 Sub-branches), 2856 own ATM booths and Cash
Recycling ATM all over Bangladesh. The shares of the Bank are listed
with both the Stock Exchanges of the country, i.e. Dhaka Stock Exchange
Limited and Chittagong Stock Exchange Limited.
Subsidiary Companies
i) Islami Bank Capital Management Limited (IBCML)
IBCML is a fully owned subsidiary of IBBL. IBCML was established
in April 01’ 2010 under the Companies Act 1994 as a Public Limited
Company with Authorized Capital of Tk.1,000.00 million & Paid-
Up Capital of Tk.300.00 million. The Company was established as
per Bangladesh Bank Letter No. BRPD(R-1)717/2010-47 dated 07
February 2010. The registered Office of IBCML is located at 65,
Dilkusha C/A in Dhaka, Bangladesh. The Company has obtained
Merchant Banker Registration Certificate No. MB-95/2019
date: March 31’ 2019 from Bangladesh Securities & Exchange
Commission to operate the activities of Issue Manager/Underwriting/
Portfolio Manager.

Disclosure on Risk Based Capital (Basel-III)
ii) Islami Bank Securities Limited (IBSL)

IBSL is also a fully owned subsidiary of IBBL. IBSL was
incorporated in March 22’ 2010 as a Public Limited Company under
Companies Act, 1994 with the objectives to carry out business of
Stock Broker & Dealer in the capital market. The authorized and paid
up capital of the company stood at Tk.5,000 million and Tk.2,700
million respectively as on December 31, 2022. The overall increase
of activities in Brokerage operation plays an important role in the
improvement of capital market of the country and enhances earning
capability of IBBL through corporate declaration.
iii) Off-shore Banking Unit (OBU)

Off-shore Banking Unit is a separate business unit governed by the
applicable rules & regulations and guidelines of Bangladesh Bank.
IBBL got permission to operate Off -shore Banking unit in its 3
Branches under International Trade Wing.
c) Any restrictions, or other major impediments, - Not Applicable.
on transfer of funds or regulatory capital
within the group.
d) The aggregate amount of capital surplus - Not Applicable.
capital of insurance subsidiaries included in
the capital of the consolidated group.
B) Capital Structure
a) Summary information on the terms and con- As per the guidelines of Bangladesh Bank, CET-1 Capital of IBBL
ditions of the main features of all capital in- consists of (i) Fully Paid-up Capital, (ii) Statutory Reserve, (iii) General
struments, especially in the case of capital Reserve (iv) Non-Repayable Share Premium Account (v) Retained
instruments eligible for inclusion in CET1, earnings (vi) Dividend equalization reserve and (vii) Minority interest
Additional Tier-1 or Tier-2 in subsidiaries.
Additional Tier-1 consists of Subordinated Debt (Mudaraba Perpetual

Bond) (up to max. 1.5% of the Total RWA or 33.33% of CET1, whichever
is higher).
Tier-2 Capital consists of applicable amount of (i) General Provision

(against Un-Classified Investments, Off-Balance Sheet exposure & Off-
Shore Banking Units) and (ii) Subordinated Debt (Mudaraba Redeemable
Bond) (Tier-2 Capital up to max. 4.0% of the total RWA or 88.89% of
CET-1, whichever is higher).

Quantitative Disclosures
b) The Amount of Tier 1 Capital with separate disclosure
BDT in million
Sl Particulars
Solo Consolidated
i Fully paid-up-capital 16,099.91 16,099.91
ii Statutory Reserve 21,735.46 21,735.46
iii Non-repayable share premium account 1.99 1.99
iv General reserve 19,428.76 19,484.58
v Retained earnings 1,609.99 2,962.83
vi Non-controlling interest in subsidiaries - 0.30
vii Dividend equalization fund 32.00 32.00
viii Common Equity Tier-1 (i to vii) 58,908.11 60,317.07
ix Less: Regulatory Adjustment (Intangible Assets) 176.25 176.25
x Common Equity Tier-1 (viii – ix) 58,731.86 60,140.82
xi Additional Tier-1 (AT1) (Mudaraba Perpetual Bond) 11,000.00 11,000.00
A Total Tier-1 Capital (x +xi) 69,731.86 71,140.82
i General Provision (Unclassified investment, SMA and off-balance sheet exposure) 17,806.58 17,806.58
ii Mudaraba Subordinated Debt (Non-Convertible Subordinated Bond) 15,200.00 15,200.00
B Tier-2 Capital (i to ii) 33,006.58 33,006.58
C Total eligible capital (Regulatory Capital) (A+B) 102,738.44 104,147.40
C) Capital Adequacy
a) A summary discussion of the Bank’s The Bank has adopted Standardized Approach (SA) to compute capital charge for
approach to assess the adequacy of its investment risk and market risk, and Basic Indicator Approach (BIA) for operational
capital to support current and future risk. Assessment of capital adequacy is carried out in conjunction with the capital
activities. adequacy reporting to Bangladesh Bank. The Bank has maintained Capital to Risk-
weighted Asset Ratio (CRAR) at 12.71% & 12.54% based on “Consolidated” and
“Solo” respectively as against the minimum regulatory requirement of 10% plus
Capital Conservation Buffer of 2.50% totaling of 12.50%. Tier-1 Capital to Risk
weighted Asset Ratio under “Consolidated” basis is 8.68% and “Solo” basis is
8.51% as against Minimum Tier-1 requirement of 6.00%. The Bank’s policy is to
manage and maintain strong Capital Adequacy Ratio through investing high rating
grade investment clients. The Bank maintains adequate capital that is sufficient
to absorb all material risks associated with the Bank. The Bank also ensures that
the levels of capital comply with regulatory requirements and satisfy the external
rating agencies and all other stakeholders including depositors.

BDT in million
Sl Particulars
Solo Consolidated
a Capital requirements for Investment risk 74,007.96 73,945.59
b Capital requirements for Market risk 1,323.84 1,323.84
c Capital requirements for Operational risk 6,603.89 6,699.02
d Minimum Capital Requirement (a+b+c) 81,935.69 81,968.45
Capital Conservation Buffer (CCB) Required 2.50% 2.50%
Capital Conservation Buffer (CCB) Maintained 2.51% 2.68%
Capital to Risk-weighted Assets Ratio (CRAR)
Total CRAR 12.54% 12.71%
CET Ratio 7.17% 7.34%
Tier-1 Ratio 8.51% 8.68%
Tier-2 Ratio 4.03% 4.03%
D) Investment (Credit) Risk

a) The General Qualitative disclosure requirement with respect to credit risk, including
i) Definitions of past due and impaired (for Past Due: As per Bangladesh Bank guidelines, any Investment if not
accounting purposes): repaid within the fixed expiry date will be treated as Past Due.
Impaired: An Investment where profit and/or installment of principal
remain for more than 90 days in respect of a Continuous Investment,
Demand Investment or a Term Investment etc. except Term Investment
below Tk. 1 million will be treated as Impaired (NPI).
Bangladesh Bank issued Circulars from time to time for strengthening
Investment (Credit) discipline and brings provisioning. All Investments/
loans & advances will be grouped into four (4) categories for the purpose
of classification, namely (a) Continuous Investment/Loan (b) Demand
Investment/Loan (c) Fixed Term Investment/Loan & (d) Short-term
Agricultural & Micro Investment.
The above Investment (Credit) are classified as follows:
Continuous and Demand Investment/ loan are classified as:
 'Sub-standard'if it is past due/overdue for 3 (three) months or beyond
but less than 9 months;
 `Doubtful'if it is past due/overdue for 9 (nine) months or beyond but
less than 12 (twelve) months;
 `Bad/Loss'if it is past due/overdue for 12 (twelve) months or beyond
from the date of expiry or claim by the bank/date of overdue.
Fixed Term Investment (Loans), which are repayable by installment(s)
are classified as: -
 'Sub-standard'if it is past due/overdue for 9 (nine) months or beyond
but less than 15 (fifteen) months;
 `Doubtful'if it is past due/overdue for 15 (fifteen) months or beyond
but less than 18 (eighteen) months;
 `Bad/Loss' if it is past due/overdue for 18 (eighteen) months or beyond
from the date of expiry or claim by the bank or from the date of
overdue.

Cottage, Micro and Small Investment under CMSME: A Continuous,
Demand are classified as:
 'Sub-standard'if it is past due/overdue for 6 (Six) months or beyond but
less than 18 (eighteen) months;
 `Doubtful'if it is past due/overdue for 18 (eighteen) months or beyond
but less than 30 (Thirty) months;
 `Bad/Loss'if it is past due/overdue for 30 (thirty) months or beyond
from the date of expiry or claim by the bank/ date of overdue.
Cottage, Micro and Small Investment for Fixed Term Investment/
Loan are classified as:
 'Sub-standard' if it is past due/overdue for 12 (twelve) months or
beyond but less than 24 (twenty four) months;
 `Doubtful' if it is past due/overdue for 24 (twenty four) months or
beyond but less than 36 (Thirty six) months;
 `Bad/Loss' if it is past due/overdue for 36 (thirty six) months or beyond
from the date of expiry or claim by the bank/ date of overdue
Short-term Agricultural and Micro-Investment are classified as:
If not repaid within the due date as stipulated in the Investment (loan)
agreement. If the said irregular status continues, the Investment (credit)
will be classified as 'Substandard 'after a period of 12 months, as
'Doubtful' after a period of 36 months and as 'Bad/Loss' after a period
of 60 months from the stipulated due date as per Investment (loan)
agreement
Special Mention Account of Continuous, Demand and Fixed Term Investment:
A continuous and Demand investment/loan which will remain overdue
for a period of 02 (two) months to below 3 months will be put into the
Special Mention Account (SMA) from the date of expiry.
Term Investment which will remain overdue for a period of 08 (two)
months to below 9 months will be put into the Special Mention Account
(SMA) from six month of Expiry date.
ii) Description of approaches followed for specific Provision for investments is made on the basis of quarter-end review
and general allowances and statistical method; by the management and instructions contained in BRPD Circular
no. 14 dated 23 September 2012, BRPD Circular no. 04 dated 29
January 2015, BRPD Circular no. 08 dated 02 August 2015, BRPD
Circular No.12, dated 20 August, 2017, BRPD Circular No. 12 dated
20 August, 2017, BRPD Circular No. 01 dated 20 February, 2018,
BRPD Circular No. 01 dated 20 February, 2018, BRPD Circular no.
03 dated 21 April 2019, BRPD Circular no. 16 dated 21 July 2020,
BRPD Circular no.51& 53 dated 30 December 2021, BRPD Circular
no. 14 dated 22 June 2022, BRPD Circular no. 51 dated 18December
2022 and BRPD Circular no. 53 dated 22 December 2022 Details are
given below:
The Bank follows the specific and general provision for investment/ loan
on the basis of Bangladesh bank Guidelines issued from time to time.

The rate of provision are given below:
a) General Provision: The Bank maintains General Provision in the
following way :
(1) @ 0.25% against all unclassified loans of Small and Medium
Enterprise (SME) as defined by the SME & Special Programs
Department of Bangladesh Bank from time to time and @ 1%
against all unclassified Investments (other than Investments/
loans to Brokerage House, Merchant Banks, Stock dealers
etc., Special Mention Account as well as SME Financing.)
(2) @ 1% on the unclassified amount for Consumer Financing
whereas it has to maintain @ 2% on the unclassified amount
for Investments/Loans for Professionals to set up business
under Consumer Financing Scheme.
(3) @ 2% on the unclassified amount for Investments/Loans to
Brokerage House, Merchant Banks, Stock dealers, etc.
(4) @1% on the off-balance sheet exposures except Bills for
Collection. Provision maintained against Bank Guarantees in
the following way
BB rating grade equivalence of Provision requirement
the Bank providing the count- (1% of the exposure
er-guarantee amount)
1 NIL Nil
2 0.50
3 or 4 0.75
Others 1.00
(5) At 1% & 2 % on Special Mansion Account as well as Unclassified
Investments (CMSME& Others) have been maintained as
‘Special General Provision-COVID-19’ as per BRPD Circular
No. 53, dated: December 22, 2022
b) Specific Provision: Provision maintained against Classified
Investments/Loans at the following rates for other than CMSME clients:
(1) Sub-standard : 20%
(2) Doubtful : 50%
(3) Bad/Loss : 100%
c) Provision for Short-term Agricultural &Micro-Investments
(1)‘Unclassified and SMA’ : 1%
(2)‘Sub-standard’ and ‘Doubtful’ : 5%
(3) Bad/Loss : 100%
d) Provision for Cottage, Micro& Small Investments under CMSME
(1) Sub-standard : 5%
(2) Doubtful : 20%
(3) Bad/Loss : 100%
iii) Decision of the Bank’s Investment (Credit) The Bank has put in place a well-structured Investment/Credit Risk
Risk Management Policy; Management Policy known as Investment Risk Manual approved by
the Board. The Policy document defines organization structure, role and
responsibilities and, the processes whereby the Investment (Credit) Risks
carried by the Bank can be identified, quantified and managed within the
framework that the Bank considers consistent with its mandate and risk
tolerance.
Authorities are properly delegated ensuring check and balance in
investment operation at every stage i.e. screening, assessing risk,
identification, management and mitigation of investment risk as well
as monitoring, supervision and recovery of investments by Grading of
Investment clients as Blue, Green, Grey, Yellow, Red and Brick Red.
Bank has framed Investment Policy, Investment Assessment & Risk
Grading, Approval Authority, Internal Audit Approval Process,
Investment Administration, Investment Monitoring, Investment
Recovery etc. Status of investments is regularly reported to the Board /
Executive Committee of the Bank.

b) Total gross Investment/ Credit exposures broken down by major types of Investment modes
Particulars BDT in million
Bai-Murabaha 841,296.29
Bai-Muajjal 90,626.11
Hire Purchase under Shirkatul Melk 238,453.15
Hire Purchase under Shirkatul Melk (HPSM in FC-OBU) 11,288.60
Hire Purchase under Shirkatul Melk (HPSM in FC-GTF) 2,352.51
Bai-Murabaha Import Bills 14,743.25
Baim FC Bills 16,511.01
Musharaka 188.24
Mudaraba Investments 5,000.14
Bai-Salam 19,016.08
Mudaraba Foreign Currency Investments 42,741.80
Quard 42,649.57
Investment in Khidmah Card 1,776.87
Bill Purchase and Discounted 134,721.88
Total Investments 1,461,365.50
c) Area wise distribution of exposures of Investments/credit exposure

In Rural Areas 82,566.78
In Urban Areas 1,378,798.72
Total 1,461,365.50
d) Division wise distribution of Investment/credit exposures the bank

Dhaka Division 675,587.32
Chattagram Division 427,683.32
Khulna Division 85,151.15
Rajshahi Division 168,201.59
Barishal Division 19,294.39
Sylhet Division 18,666.80
Rangpur Division 45,945.34
Mymensing Division 20,835.59
Total Investments 1,461,365.50
e) Major industry type wise distribution of exposures of investment/credit

Economic purpose wise investment
Investment to Directors -
Investment to CEO & Sr. Executives 1,729.63
Trade & Commerce 478,872.86
Real Estate 84,824.44
Transport 9,358.06
Agriculture (including fertilizer & agriculture implements) 46,982.71
Industrial investment* 772,147.67
Others 67,450.13
Total 1,461,365.50

*Industrial Investment
Textile-Spinning, weaving & dyeing 159,189.38
Garments & garments accessories 75,519.33
Steel, re-rolling & engineering 109,167.81
Agro-based Industry 229,259.21
Food & Beverage 16,122.25
Cements Industry 16,837.02
Pharmaceuticals 4,517.20
Poultry, Poultry feed & Hatchery 3,431.74
Sanitary Wares 60.04
Chemicals, Toiletries & Petroleum 16,164.63
Printing & Packaging 15,150.78
Power (Electricity) 12,379.74
Ceramic & Bricks 13,926.21
Healthcare (Hospital & Others) 7,853.90
Plastic Industries 6,846.28
Petrol Pump, & CNG Filling Station 2,771.85
Information Technology 211.26
Hotel & Restaurant 1,624.86
Other Industries 81,114.18
Total 772,147.67
f) Maturity wise breakdown of investment excluding Bill purchased and discounted, broken down by major types of investment/
credit exposures
Repayable on Demand -
Up to 1 month 169,223.20
Over 1 month but not more than 3 months 114,752.50
Over 3 months but not more than 1 year 685,032.01
Over 1 year but not more than 5 years 147,170.00
Over 5 years 210,465.90
Total 1,326,643.61
g) By major industry or counterparty type

 Amount of past due investment/loans provided separately:
Special Mention Account (SMA) 9,884.95
Sub-Standard (SS) 7,862.65
Doubtful (DF) 5,188.91
Bad & Loss (B/L) 40,970.45
Total 63,906.96
 Specific & General Provisions:

Specific and General Provision were made on the amount of following classified and unclassified investments/ loans,
Off-Balance Sheet exposure of the bank according to Bangladesh Bank guidelines:

Unclassified Investments 1,407,343.49
Classified Investments 54,022.01
Off-Balance Sheet Exposures 268,015.46
Total 1,729,380.96

 * Charges for specific allowances and charge-off as on 31.12.2022:
Cumulative specific and general provision as on 31.12.2022 were made on the amount of classified investment,
Unclassified Investment and Off-Balance Sheet Exposures:
General Provision for Unclassified Investment 15,670.55
General Provision for Off-Balance Sheet Exposures 2,136.03
Specific Provision for Classified Investment 42,073.98
Total General & Specific Provision 59,880.56
 Gross Non-Performing Assets
Movement of Non-Performing Assets (NPAs):
Opening Balance 39,387.11
Addition 80,179.82
Reduction 65,544.92
Total classified investment at the end of the year 54,022.01
 Movement of specific provisions for NPAs
Opening Balance 37,230.28
Recoveries of amount previously written-off 244.77
Provisions made during the period 4,600.03
Fully provided Investment write-off/waived/transferred (1.10)
Total provision held against classified investment at the end of the year 42,073.98
 Provision made during the period includes provision made against subjective judgment.
E) Equities: Banking Book Positions
Qualitative disclosures
a) The general qualitative disclosures requirement with respect to equity risk, including:
• Differentiation between holdings on which capital gains are Investment in equity securities are broadly categorized into
expected and those taken under other objectives including two parts:
for relationship and strategic reasons; and i) Quoted Securities (common or preference share & mutual
fund) that are traded in the secondary market (Trading Book
Assets).
ii) Unquoted Securities are categorized as banking book
equity exposures which are further sub-divided into two
groups: unquoted securities which are invested without any
expectation that these will be quoted in near future i.e. held to
maturity (HTM). Securities those are acquired under private
placement or IPO and are going to be traded in the secondary
market after completing required formalities. Unquoted
securities are valued at cost.
• Discussion of important policies covering the valuation The primary objective is to invest in equity securities for
and accounting of equity holdings in the banking book. the purpose of capital gain by selling them in future or held
This includes the accounting techniques and valuation for dividend income. Dividends received from these equity
methodologies used, including key assumptions and securities are accounted for as and when received and when
practices affecting valuation as well as significant changes right to receive is established. Both Quoted and Un-Quoted
in these practices. equity securities are valued at cost and necessary provisions
are maintained if the prices fall below the cost price.
As per Bangladesh Bank guidelines, the HFT equity securities
are revaluated once in each week using mark to market
concept and HTM equity securities are amortized once a year
according to Bangladesh bank guideline.
The HTM equity securities are also revalued if any, are reclassified
to HFT category with the approval of Board of Directors.

(In million Taka)
As on December 31, 2022
Solo Consolidated
Particulars
a) Value disclosed in the balance sheet of investments, as well as the fair value of
those investments, for quoted securities a comparison to publicly quoted share val- 3,170.34 6,777.31
ues where the share price is materially different from fair value.
The cumulative realized gains (losses) arising from sales and liquidations in the 128.42 284.19
b) reporting period.
c) Total unrealized gains (losses). (156.89) (1,403.26)
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.
• Specific Market Risk 210.14 210.14
• General Market Risk 210.14 210.14
F) Profit Rate Risk in the Banking Book

The general qualitative disclosure Profit rate risk is the risk where changes in market profit rates might adversely affect
requirement including the nature of bank’s financial condition. Changes in profit rates affect both the current earnings
Profit Rate Risk in the Banking Book (earnings perspective) as well as the net worth of the bank (economic value perspec-
(PRRBB) and key assumptions, in- tive). Re-pricing risk is often the most apparent source of profit rate risk for a bank
cluding assumptions regarding in- and is often gauged by comparing the volume of a bank’s assets that mature or re-
vestment prepayments and behavior price within a given time period with the volume of liabilities that do so.
of non-maturity deposits, and fre-
quency of PRRBB measurement.
BDT in million
Quantitative Disclosure’s
Over 3 Over 6 Over 9
Particulars 1-90 days Months to Months to Months to
6 Months 9 Months 12 Months
b) The increase (decline) in earnings Rate Sensitive Assets 508,124 169,411 118,528 337,350
or economic value (or relevant
Rate Sensitive Liabilities 678,752 109,192 57,678 134,581
measure used by management) for
upward and downward rate shocks GAP (170,628) 60,219 60,850 202,769
according to management’s method Cumulative Gap (170,628) (110,409) (49,559) 153,210
for measuring PRRBB, broken
down by currency (as relevant) Adjusted profit rate changes 1% 1% 1% 1%
(PRC)
Quarterly earnings impact (426.57) 150.55 152.12 506.92
(Cum. Gap*PRC)
Accumulate earning impact (426.57) (276.02) (123.90) 383.02
to date

G) Market Risk
Qualitative Disclosure
a) i) Views of BOD on trading / investment activities The Board approves all necessary policies related to market
risk, sets various internal limits to monitor and review compli-
ance on a regular basis. The objective of market risk manage-
ment is to minimize the impact of losses on bank’s earnings
and shareholders’ equity.
ii) Methods used to measure Market risk The Bank measures impact on profitability and impact on as-
set prices under market risk through Maturity GAP Analysis,
Sensitivity Analysis, VaR, and Mark to Market. Capital re-
quirement under market risk as per Standardized rule based
approach of Basel-III, 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 “specific
risk” and “general market risk”.
ii) Market Risk Management system The Bank has its own Market Risk Management System,
which includes Asset Liability Risk Management (ALM) and
Foreign Exchange Risk Management under core risk man-
agement guidelines. The Treasury Division manages mar-
ket risk covering liquidity, profit rate, foreign exchange and
equity price risks with oversight from Asset-Liability Man-
agement Committee (ALCO) comprising senior executives
of the Bank. ALCO is chaired by the Managing Director &
CEO. ALCO meets at least once in a month to monitor and
oversee among others the overall market risks.
iv) Policies and processes for mitigating market risk The bank has put its Asset Liability Management policy by
setting various risk limits for effective management of market
risk and ensuring that the operations are in line with bank’s
expectation of return to market risk through proper Asset
Liability Management. The effectiveness of approved policies
is monitored on an on-going basis. Foreign Exchange Open
Position limits (Day limit / Overnight limit), Deal-wise cut-loss
limits, Stop-loss limit, Profit / Loss in respect of cross currency
trading are properly monitored and exception reporting
is regularly carried out. Holding of equities is monitored
regularly so that the investment remains within the limit as set
by Bangladesh Bank. Asset Liability Management Committee
(ALCO) analyzes market and determines strategies for
mitigating market risks. Reconciliation of foreign transactions
is also carried out regularly.
Quantitative Disclosure
BDT in million
Capital Requirement for
Solo Consolidated
Profit (Interest) Rate Risk - -
Equity Position Risk 420.28 420.28
Foreign Exchange Risk 903.56 903.56
Commodity Risk - -
Total Capital Requirement for Market Risk 1,323.84 1,323.84

H) Operational Risk
a) i) Views of BOD on system to reduce Operational risk is the risk of loss or harm resulting from inadequate
Operational Risk or failure of internal processes, people and systems or from external
events.
The policy for measuring and managing 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 all operational risks. As a part of continued surveillance,
the Management Committee (MANCOM), Risk Management Co-
ordination Committee (RMCC), Risk Management Committee (RMC)
of Board and Risk Management Wing (RMW) regularly review different
aspects of operational risks and suggest to formulate appropriate
policies, tools & techniques for mitigation of operational risk.
ii) Performance gap of executives and staff IBBL has a policy to provide competitive package and best working
environment to attract and retain the most talented people available in
the industry. It recognizes the importance
of having the right people at right positions to achieve organizational
goals. The learning and development strategy puts special focus on
continuous professional development to strengthen individual’s skill set
by removing weaknesses to perform the assigned job with perfection.
The strong brand image of IBBL plays an important role in employee
motivation. As a result, there is no significant performance gap.
iii) Potential external events No potential external events are expected to expose the Bank to
significant operational risk.
iv) Policies and processes for mitigating The policies for operational risks including internal control & compliance
operational risk risk are approved by the Board taking into account relevant guidelines
of Bangladesh Bank. The bank has put its policy guidelines on Risk
Based Internal Audit (RBIA) system with a view to rating the branches.
As per provision of RBIA, branches are rated according to their risk
grading/scoring. Subsequently, Audit Division prepares their audit plan,
procedure and frequency of audit to be conducted on Branches. All the
business units and supporting units of Head Office primarily identifies
operational risk issues through Departmental Control Function Check
List (DCFCL) and Audit Division regularly reviews the reports and
ensure implementation of the same. Bank’s anti money laundering
activities are continuously monitored by Chief Anti Money Laundering
Compliance Officer (CAMLCO). The activities of Money Laundering
and Terrorist Financing Division (MLTFPD) are devoted to protect all
money laundering and terrorist finance 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.
v) Approach to calculating capital charge for Basic Indicator Approach is being used for calculating capital charge
operational ris for operational risk as of the reporting date.
As per the Risk Based Capital Adequacy Framework, the capital charge for operational risk is equal to 15% of average
positive annual Gross Income of the previous three years:
In line with the above, the Bank has adopted the Basic Indicator Approach for computing capital to operational risk.
BDT in million
Capital Requirement Solo Consolidated
Operational Risk 6,603.89 6,699.02

I) Liquidity Risk
i) Views of BOD on system to reduce liquidity The Board approves the significant policies, sets tolerance limit for
risk various liquidity risk indicators and risk appetites for liquidity risk
management. The BOD also reviews the related policies and guidelines
of liquidity risk and ensures necessary steps taken by management to
identify, measure, monitor and control liquidity risk.
ii) Methods used to measure Liquidity Risk At a very basic level, liquidity measurement involves assessing of
Bank’s all cash inflows and its all cash outflows to identify the potential
net surplus/(shortfall). Cash outflows also include funding requirements
for off balance sheet commitments.
IBBL uses two approaches/methods to measure Liquidity risk.
(a) Time bucket analysis: Time bucket analysis is an assessment of
cash flow mismatches and is done through preparation of Structural
Liquidity Profile of on balance sheet and off balance sheet exposure.
Appropriate tolerance levels/prudential limits have been stipulated for
mismatches in different time buckets.
(b) Ratio analysis: Under ratio analysis, various ratios are prescribed
with appropriate limits. Several key liquidity risk indicators are being
used to identify, measure, monitor and control liquidity position on
regular basis. The key liquidity risk indicators are: Statutory Liquidity
Ratio (SLR), Cash Reserve Ratio (CRR), Investment to Deposit Raito
(IDR) Maximum Cumulative Outflow (MCO), Medium Term Funding
Ratio (MTFR) , Liquid Asset to Total Deposit Ratio, Liquid Asset to
Short Term Liabilities, Liquidity Coverage Ratio (LCR), Net Stable
Funding Ratio(NSFR).
iii) Liquidity Risk management system Responsibility of managing liquidity lies with Asset Liability Committee
(ALCO) of the Bank which meets at least once in every month. Asset
and Liability Management (ALM) desk closely monitors and controls
liquidity requirements on a daily basis by proper coordination of
funding activities. A monthly projection of fund flows is reviewed in
ALCO meeting regularly.
In order to develop comprehensive liquidity risk management
framework, Contingency Funding Plan (CFP) has been developed which
is a set of policies and procedures that serves as a blueprint for the bank
to meet its funding needs in a timely manner and at a reasonable cost.
For day-to-day liquidity risk management, CFP ensures that the bank
is well prepared to respond to an unexpected problem. In this sense, a
CFP is an extension of ongoing liquidity management and formalizes
the objectives of liquidity management by ensuring: (i) a reasonable
amount of liquid assets are maintained; (ii) measurement and projection
of funding requirements during various scenarios; and (iii) management
of access to funding sources.
CFP also provides directions for plausible actions in distress and
emergency situations. In case of a sudden liquidity stress, it is important
for the bank to handle the same in an efficient and organized way to
meet its obligations to the stakeholders. Since, such a situation requires
a spontaneous action, CFP will put the bank in better position by
addressing the liquidity problem more efficiently and effectively. CFP
ensures that bank management and key staff are ready to respond to any
distress situation.

iv) Policies and processes for mitigating Liquidity A structural maturity ladder or profile is prepared periodically
Risk following the guidelines of the Bangladesh Bank DOS circular no. 02
dated 29 March 2011. Maturity ladder of cash inflows and outflows is
an effective tool to determine bank’s liquidity position. It estimates a
bank’s cash inflows and outflows and thus net deficit or surplus (GAP)
both on a day-to-day basis and over a series of specified times can be
estimated. A bucket wise (e.g. call, 2-7 days, 1 month, 1-3 months, 3-12
months, 1-5 years, over 5 years) maturity profile of assets and liabilities
is prepared to understand mismatch in every bucket.
Quantitative Disclosure
As on 31 December 2022
Particulars
Liquidity Coverage Ratio (LCR) 82.90%
Net Stable Funding Ratio (NSFR) 105.02%
Stock of High Quality Liquid Assets (HQLA) 153,206.07
Total net cash outflows over the next 30 calendar days 184,804.34
Available amount of Stable Funding 1,370,608.92
Required amount of Stable Funding 1,305,102.30
J) Leverage Risk
i) Views of BOD on system to reduce excessive The Board approves all policies related to Leverage Ratio. In order to
leverage avoid building-up excessive on-balance sheet and off-balance sheet
leverage in the banking system, a simple, transparent, non-risk based
leverage ratio has been introduced to constrain leverage in the banking
sector.
ii) Policies and processes for mitigating excessive Guidelines on Risk Based Capital Adequacy (Revised Regulatory
on and off-balance sheet leverage Capital Framework for banks in line with Basel III) as provided by
BRPD of Bangladesh Bank is followed by IBBL while managing
excessive on and off-balance sheet leverage of the bank. As per RBCA
Guidelines, leverage ratio is being calculated as Tier I Capital divided by
Total Exposure (on and off-balance exposures) after related deductions.
iii) Approach for calculating exposure IBBL calculates the regulatory leverage ratio as per the guideline of
Basel III leverage ratio framework as adopted by Bangladesh Bank
where a minimum Tier 1 leverage ratio of 3% has been prescribed both
at solo and consolidated level. IBBL has been maintaining leverage ratio
more than minimum requirement of 3% applicable from 01 January
2015. The regulatory leverage ratio has been calculated considering the
following:
1. Capital Measure: The amount of capital (the numerator) for the
leverage ratio is being calculated as per definition of Tier 1 capital as
specified in Chapter 3 of ‘Guidelines on Risk Based Capital Adequacy
(Revised Regulatory Capital Framework for banks in line with Basel
III’
2. Exposure Measure:
General Measurement Principles: The amount of exposure (the
denominator) for the leverage ratio is being calculated following the
accounting measure of exposure. In order to measure the exposure
consistently with financial accounts, the following are being applied by
the bank:

i. On balance sheet, non-derivative exposures are being calculated by
netting-off of specific provisions and valuation adjustment.
ii. Physical or financial collateral, guarantee or credit risk mitigation
purchased are not used for reducing on-balance sheet exposure.
iii. No Netting off loans and deposits is done.
On-Balance Sheet Items: Bank has included the accounting balance
sheet item for the purposes of leverage ratio.
Off-Balance sheet Item: Bank has calculated the off-balance sheet
(OBS) items by applying a uniform 100% Credit Conservation Factor
(CCF). For unconditionally cancellable commitments without prior
notice, a CCF of 10% is applied.
Solo Consolidated
Leverage Ratio 3.79% 3.86%
On balance sheet exposure 1,795,829.98 1,796,454.90
Off balance sheet exposure 46,381.16 46,381.16
Total exposure 1,842,211.14 1,842,836.06
K) Remuneration
a) Name, composition and mandate of the main Board of Directors of the Bank is the main body to oversee the
body overseeing remuneration. remuneration. The Board, however, generally suggest the management
to place proposal for revision of remuneration from time to time.
External consultants whose advice has been sought, Generally, no advice from any external consultant with regard to the
the body by which they were commissioned, and in remuneration process of the bank is sought whatsoever and therefore no
what areas of the remuneration process. commission to this effect is paid to any agencies.
A description of the scope of the bank’s The bank does not have any foreign subsidiary; rather it has branches
remuneration policy (e.g. by regions, business as well as zonal offices throughout the country. IBBL follows uniform
lines), including the extent to which it is applicable remuneration policy which does not change due to the employees
to foreign subsidiaries and branches. working at diversified geographical locations.
A description of the types of employees considered No group of employees has been categorized as material risk taker as
as material risk takers and as senior managers, well as senior managers; rather the risks in different areas of operations
including the number of employees in each group. of the bank are taken by the employees concerned as a team.
b) An overview of the key features and objectives Remuneration policy is based on attracting, retaining and motivating
of remuneration policy. the employees to ensure that they perform in the best interests of the
bank and its shareholders by growing and developing the business.
In consideration of the nature of works/responsibilities fixed
remuneration has been established for the employees of a particular
grade. However, the fixed remuneration differs from grade to grade
and generally changes with the promotion/demotion to the higher/lower
grades. The components of the fixed remuneration are basic pay, house
rent, medical as well as conveyance allowances etc. The basic pay is
increased at a fixed rate every year towards adjustment of the inflation.
Employees may have additional remuneration by means of getting
special increment, promotion for their extraordinary performance.

Remuneration concerning the future benefits of the employees is paid

in the form of Gratuity, Provident Fund and Superannuation Fund. The
amount of such remuneration varies in terms of grade, basic pay as well
as service length.
Variable remuneration is paid to the employees in the form of Incentive
Bonus on the basis of the performance resulting satisfactory annual profit
of the bank. The overall performance of the employees is considered
as team performance without categorizing any ‘Identified Staff as Risk
Takers’ and Incentive Bonus is allowed to them in proportion to their
respective basic pay.
Whether the remuneration committee reviewed the The remuneration of the bank was not reviewed by the Board of
firm’s remuneration policy during the past year, Directors last year and consequently no change whatsoever has taken
and if so, an overview of any changes that was place in the remuneration process
made.
A discussion of how the bank ensures that risk No segment of the employees has been categorized as the ‘risk and
and compliance employees are remunerated compliance employees” and therefore no scope is there to separately
independently of the businesses they oversee. remunerate such type of employees for their overseeing the business
c) An overview of the key risks that the bank takes Basically, the ‘fixed remuneration’ process is being practiced and in
into account when implementing remuneration some cases the adjustment of the losses, so incurred by the bank due
measures. to the employees’ non-compliance of different rules & regulations is
compensated from the fixed remuneration as well as deferred future
benefits of the employees concerned through claw back process as a
means of adjustment of the current and future risk.
An overview of the nature and type of the key The risk of non-adherence to regulatory compliances as well as violations
measures used to take account of these risks, of different rules and procedures causing significant losses from the side
including risks difficult to measure (valued need of the employees is taken into consideration while implementing the
not be disclosed) remuneration measures.
A discussion of the ways in which these measures To avert the risks, the provisions with regard to partial payment of
affect remuneration. basic pay as well as non-disbursement of incentive bonuses and future
benefits, claw back process from the monthly remunerations etc. are
there.
A discussion of how the nature and type of these Various disciplinary measures ranging from the issuance of censure to
measures has changed over the past year and dismissal from the service for committing the irregularities is there and
reasons for the change, as well as the impact of such measures significantly affect the remuneration process.
changes on remuneration.
d) An overview of main performance matrix for Over the past years, due to committing various types of violations,
the bank, top-level business lines and individuals. remuneration of the individual employees has been changed but no
change affecting the remuneration system has taken place.
The individual performance measurement metrics affecting the
remuneration is strictly followed. Overall performance of the employee
is considered as the team result.
Variable remuneration in the form of Incentive Bonus is allowed to
them in proportion to their respective basic pay, which generally varies
in relation with the operating profit. However, employees may get
accelerated promotion for extraordinary performance as well as may
be awarded demotion for committing violations that has a link with the
remuneration process.
In some cases, due to non-fulfillment of desired criteria as set by the
Board, a portion of incentive bonus to some employees was not allowed.
In some cases the employee’s committing lapses and incurring financial
losses, are not allowed the incentive bonus.

e) A discussion of bank’s policy on deferral To ensure long-term retention of the employees remuneration
and vesting of variable remuneration and if, the concerning future benefits has been designed which includes Gratuity,
fraction of variable remuneration that is deferred Provident Fund, and Superannuation Fund etc.
differs across employees or groups of employees,
a description of the factors that determine the
fraction and their relative importance.
f) A discussion of the bank’s policy and criteria for As per the prevailing practice, the incentive bonus, as variable
adjusting deferred remuneration before vesting and remuneration, is to be completely paid to the eligible employees and
(if permitted by national law) after vesting through any fraction thereof is not deferred with regard to the determination
claw back arrangements. of their relative performance. Once the incentive bonus, as variable
remuneration, is paid it cannot refunded through claw back arrangement.
g) An overview of the forms of variable No different form with regard to payment of variable remuneration is
remuneration offered (i.e. cash, shares and share- there. The remuneration of the employees is paid in the form of cash.
linked instruments and other forms)
h) A discussion of the use of the different forms of Not Applicable
variable remuneration and, if the mix of different
forms of variable remuneration differs across
employees or groups of employees) a description
the factors that determine the mix and their relative
importance.
i) Number of meetings held by the main body Not Applicable
overseeing remuneration during the financial year
and the remuneration paid to its members.
j) Number of employees received a variable Not Applicable
remuneration award during the financial year.
k) Number and total amount of guaranteed bonuses 02 (two) incentive Bonus have been declared.
awarded during the financial year.
l) Number and total amount of sign-on awards Not Applicable
made during the financial year
m) Number and total amount of termination Not Applicable
payments made during the year.
n) Total amount of outstanding deferred Not Applicable
remuneration, split into cash, shares and share-
linked instruments and other forms.
o) Total amount of deferred remuneration paid out Not Applicable
in the financial year
p) Breakdown of the amount of remuneration Not Applicable
awards for the financial year to show
-Fixed and variable
-deferred and non- deferred
-different forms used (Cash, Shares and share-
linked instruments and other forms).
q) Total amount of outstanding deferred Not Applicable
remuneration and retained remuneration exposed
to ex-post explicit and/or implicit adjustments.
r) Total amount of reductions during the financial Not Applicable
year due to ex post explicit adjustments.
s) Total amount of reductions during the financial Not Applicable
year due to ex-post implicit adjustments.

NPI Management
IBBL donates Trolly for Railway Passengers
NPI Management for Sound Asset Quality

Non-performing investment is growing outrageously which seems very alarming for the Banks as well as for the economy of
the country. The volume of NPI in the banking sector of a country indicates financial health of the economy and tends to be a
benchmark of international business relationship.
Non-performing Investment (NPI)

The Investment Management Wing has been entrusted with the management of NPI that requires devising new ideas &
techniques along with close follow-up, rigorous supervision, intensive monitoring, collective & collaborative approach,
engagement of entire manpower of the bank. Activating Task Force Committees of the Branches & Zones and initiating timely
legal actions are imperative in order to contain the NPI at minimal level.
Impacts of Non-performing Investment

NPI is a whole time concerned issue for Banks. Any irregularities in investment management might build up NPI. The presence
of larger volume of NPI leads to massive unwanted effects for banks including but not limited to:
NPI creates embargo on new investing capacity of a Bank. Unless invested fund is recovered in a timely manner, it will not
be available to make fresh investment. When the problem becomes prevalent & persistent in the financial sector, the banking
system fails to provide credit and capital to the economy’s productive & rising segments. This invariably results in an economic
downturn.
NPI requires banks to maintain provision against looming investment losses, which ultimately causes a bank to lose hard-
earned profit.
Larger volume of NPI hamstrings the image and goodwill of the Bank, which may lead to dent trust of the depositors and
other stakeholders at home and abroad.
NPI has negative impact on the EPS. EPS is shrunk as Bank has to set aside provision against NPI.
High NPL ratio diminishes the overall investment quality of the banking sector. Banks act as custodians of the deposits
of general people, influence and propel economic activities, such as resource mobilization in public and private sectors,
production, distribution and consequent poverty alleviation. It is thus paramount to engage all-out efforts to address effectively
the soured investments.

NPI Management
Comparative Position of Asset Quality:
(Amount in million Tk. )
31.12.2021 31.12.2022
Sl. Items % to General % to General
Amount Amount
Inv. Inv.
1 General Investment 1,191,173 1,461,365
2 Overdue Investment 109,041 9.15% 108,275 7.41%
3 Classified Investment 39,387 3.31% 54,022 3.70%
4 Rescheduled Investment 146,712 12.31% 187,290 13.82%
5 Written-off investment 9,334 0.78% 9,063 0.62%
6 % of Written-off to CL Investment 23.70% 16.78%
Non-performing Investment (NPI) Management

A smart and well-thought-out management of NPI is regarded as key to achieving sound financial health
of a Bank, which ultimately leads to increase profitability. Concerned issues for effective NPI Management are furnished
below:
 Multiple problematic investment clients could be nurtured from the very beginning while banks appraise the early alerts
such as deterioration in cash flow, lower utilization of limit, sudden drop in sales, higher account receivables or longer
collection period.
 To identify and follow up these early alerts, banks need to monitor every single account on a daily basis, based on the fi-
nancial indicators. Most of the adverse consequences can be averted if they are monitored rigorously.
 In addition to developing strong monitoring systems, banks need to assess and select the right client who has adequate
business experience with financing requirements, willingness to repay the investment, and capability to provide adequate
collateral or security against prospective investment limits.
 Banks may opt for rescheduling liabilities of the clients who are in a state of financial distress. However, banks need to
conduct due diligence and become sanguine that they can comply with rescheduled terms. The bank should refrain from
rescheduling of investment where client’s willingness and/or ability to repay due installments seem below the acceptable
level. Bank should allow rescheduling facility strictly based on judicious assessment of cash flow and repayment ability of
the client rather than using rescheduling as an instrument for reduction of NPI for enhancement of short-term performance
for banks. After rescheduling of investment, close monitoring and follow-up of repayment as per revised schedule and
continued business operations of clients should be ensured in order to prevent further deterioration of investment quality.
Sanctioning Divisions may play catalytic role in this case.
 When defaulted investments are found not recoverable in spite of all-out, dedicated and wholehearted efforts, those can
be shifted as written-off from the balance sheet of the bank from time to time, following respective policies of the Central
Bank.
 If the investment is not recovered within the stipulated schedule and even after extended period of time despite rigorous
persuasion, the Bank should go for initiating timely legal action.
 After filing suits, the same should be regularly followed-up in order to obtain early decree in Bank’s favor and to go for
filing execution suits. Regular sitting with the dealing lawyers should be made to review the suit position of the Branch
and expediting settlement of court cases.

Stakeholder and Materiality
Identification of Stakeholder
Identification of stakeholders is the key to understanding the expectations from the company and as such helps pave the
pathway towards delivering value and fulfilling those expectations. While shareholders, customers, suppliers and employees
are the prime stakeholders; the regulators, local community, and the environmentally interested group’s complete stakeholder
circle of IBBL.
Engagement with Stakeholders

The first step of Stakeholder Engagement process for IBBL is to establish the three pronged sustainability dimension- economic,
social and environmental. The key stakeholders are hence aligned with these dimensions and sustainable business objectives are
identified by understanding correlated stakeholder expectations. By gauging these objectives, IBBL has formulated strategies
through aligning the business model with the value creation process that targets stakeholders’ expectations. This is summarized
in the table below:
Sustainability Key Stakeholders Sustainable Business

How IBBL Addresses this
Dimension Targeted Objectives
Economic Shareholders  Maximizing shareholder  Being strategically focused, planning
wealth by declaring sound well ahead to counter challenges and
returns annually identifying opportunities.
 Continuing to uphold sound governance
practices and effective risk management
infrastructure.
 Reinforcement of the internal controls and
compliances.
Customers Provide quality product/  Spreading the geographical boundaries
service that meets absolute through opening more branches, Sub-
needs of customers Branches and Agent Outlets across the
Careful management of country.
operations so as to protect  Molding existing service suites to cater to
customer interest especially diversified customer requirements.
for depositors  Continuously innovating in product suite
and operational process to meet customer
requirements in the most efficient manner.
Suppliers/ Service  Adhere to proper  Rigorously following internal
Providers procurement regulations procurement policy and upgrading the
while maintaining a good policy regularly to ensure strong control
business relationships with and fair treatment of suppliers.
the service providers
Regulators  Ensure compliance with all  Putting in place processes, practices
regulatory guidelines and and controls to ensure compliance with
directives applicable rules and regulations imposed
by local and international laws and
regulations.
 Maintaining sound relation with regulators.
 Always thriving to achieve global best
practices.
Social Employees Continuously encouraging Engaging employees in activities other
employees and working than business as usual, to achieve a balanced
towards creating a healthy, productive environment which is beneficial
ethical and supportive work to both employees and IBBL
environment  Investing in a wide range of training
Nurturing human capital programs for every member of the human
to ensure sustained capital to ensure personal and professional
collaboration with the development.
Company

Sustainability Key Stakeholders Sustainable Business
How IBBL Addresses this
Dimension Targeted Objectives
Social Local Communities  Adding value to the society  Implementing programs and initiatives
 Conducting business without targeted at marginalized communities
causing disruptions in the and underprivileged to address the
society requirement of society in education/
skills development, healthcare and
overall poverty alleviation
 Enhancing financial access to marginalized
population
 Most importantly, adding value to the
society by being a good and transparent
corporate citizen.
Environmental Environmentally  Conducting business without  Implementing Green Banking practices
Interested groups/Non- harming the environment and ensuring compliance through Green
Government Reporting to Bangladesh Bank
Organizations  Holding a rigid control on energy
consumption to reduce wastage
In consideration of the above, IBBL has engaged with regulators, management and employees to identify their references,
concerns and expectations from IBBL.
Stakeholders
Engagement Process Key Issues raised by Stakeholders
Engaged
 One-on-one Meetings  Corporate Governance, Ethics and Compliance
 All local regulations  Anti-corruption measures implemented by
Circular/ directives/ instructions issued by the organization
Regulators Bangladesh Bank, Bangladesh Securities &
Exchange Commission (BSEC), National Board  Responsibility of the organization towards
of Revenue (NBR) and other regulatory bodies. the environment and the community
 Corporate Governance, Ethics and
Compliance
 Anti-corruption measures implemented by
the organization
 Financial Performance
 Creating an enabling environment for all
IBBL employees
 Non-discrimination, Diversity and Equal
Opportunities
 Social obligations through capacity

development of the underprivileged and
women entrepreneurs
Management Interactions  Environmental obligations through in-house
management, CSR and Green Banking
initiatives
Superior customer service and trust through
continuous improvement
 Remuneration and Benefits
 Career Growth and Development
Opportunities
 Fair Treatment
Employees Interactions
 Safe and Healthy Work Environment for both
Male and Female employees
 Work-life Balance
 Employee Grievance Management

Addressing the Material Issues
Material within the
Category Aspects Material outside the Organization
Organization
 Economic Yes N/A
Economic Performance
 Procurement Practices
 Energy Yes Yes
 Biodiversity Any negative influence This aspect is material for the
 Compliance on protected and/ or high environment, and for communities
biodiversity areas caused by living close to protected and/or high
Environmental
IBBL’s operations may lead biodiversity areas.
to fines /sanctions/loss of
license to operate/ negative
publicity.
Social
I. Human Resources Practices
Employment and Occupational Health and Safety Yes N/A
Training and Education Yes N/A
Diversity and Equal Opportunity Yes Yes
This aspect is material for
communities where IBBL creates job
opportunities through its operations /
branch networks.
Equal Remuneration for Women and Men Yes N/A
II. Human Rights
Child Labour N/A N/A
Security Practices Yes N/A
Non-discrimination Yes Yes
This aspect is material for
communities where IBBL creates
job opportunities through its branch
networks.
III. Society/ Local Communities
Local Communities N/A Yes
This aspect is material for local
communities where IBBL has
operations or investments in projects.
Anti-corruption Yes Yes
This aspect is material for IBBL’s
customers and other stakeholders.
IV. Product Responsibility
Customer Health and Safety N/A Yes
customers.
Marketing Communications Yes Yes
existing and potential customer
groups.
Customer Privacy Yes Yes
Maintaining privacy of This aspect is material for IBBL’s
Customer information is customers.
one of the major priorities of
IBBL staff and a significant
part of its employee Code of
Conduct.

SUSTAINABILITY
REPORT

Sustainability Report
The Sustainability Reporting Process IBBL’s forward movement towards Green &
To work credibly towards integrating sustainability into
business operations and developing, a sustainability report is
Sustainable Banking
important to adhere to principles that help identify, prioritize Sustainable Finance refers to the process of taking
and define sustainability issues. The GRI Standards are Environmental, Social and Governance (ESG) considerations
principle-based, so IBBL used them to define the content
into account while making investment decisions. In recent
of the report as well as the quality of the information it
communicates. The principles are: years, sustainability is being prioritized in almost every sectors
The Goals for Sustainable Development and banking industry is observing sustainability as a priority.
Our planet faces massive economic, environmental and social
Islami Bank Bangladesh Limited (IBBL) is as well committed
challenges. Sustainable Development Goals (SDGs) were
designed to help society and business focus on solving global to activate sustainability in its everyday business and believes
sustainability challenges. As a key stakeholder, the business in strong sustainability practice for moving forwards being a
sector was closely involved in the development of this
sustainable entity in the society.
process. The SDGs provide a vision of a sustainable future
and propose actionable targets for current major sustainability
challenges, including:- climate change - water scarcity - food
insecurity- waste and pollution - inequality - human rights-
urbanization

IBBL achieved sustainability rating Award
Functioning Areas the activities/ performances and progresses of the Dedicated

Sustainable Finance Help Desk has been started from July-
Green Transformation Fund September quarter, 2022 as a regulatory issue.
IBBL signed Participation Agreement with Bangladesh Bank Sustainability Rating

for availing investment in FC (USD & Euro) under Green Bangladesh Bank evaluates the performance of Banks/ FIs
Transformation Fund (GTF). So for three valued customers based on some rating components i.e. Sustainable Finance
availed Euro 21.88 million from GTF Fund in 2022. Indicators, CSR Activities, Green Refinance, Core Banking
Sustainability and Banking Services Coverage component.
Environmental & Social Risk Rating This evaluation is being done annually on the basis of previous
year’s overall performance. IBBL has been rated and listed
The Bank has incorporated Environmental & Social
among top ten high performed Banks in Bangladesh in terms
Risk Management as part of the existing investment risk
of Sustainability Rating for the year 2020 & 2021.
methodology to assess the customers through Environmental
& Social Due Diligence (ESDD) checklists during induction.
As per Environmental & Social Risk Management Policy
Technological Advancement for Green
& Procedure, we conducted Environmental & Social Risk Activities and Green Growth
Rating for all applicable projects. Total 50,758 numbers of Digitalization of banking services i.e. introduction of modern
projects have been rated under Environmental & Social Risk technology based banking services that help environment
Rating (ESRR). friendly practices and reduce carbon footprint by facilitating
prompt, efficient and unerring banking services without use
Dedicated Sustainable Finance Help Desk of paper and clients’ physical movement to and from the
The bank established the ‘Dedicated Sustainable Finance branch premises. IBBL is practicing Online and Internet
Help Desk’ at potential branches for rendering Sustainable banking, ATM, CRM, Visa Card, Credit Card, CellFin, M
Linked Finance and Green Investment as per SFD circular Cash, Call centre and all other types of innovative, modern
no. 05 dated September 09, 2020 of Bangladesh Bank. The and automated banking services.
duties and responsibilities of the officials concerned to the
desk as well as some terms of references were furnished
and circulated for smooth functioning of the desks. The
submission of the quarterly report to Bangladesh Bank on

Islami Bank’s franchise team East Zone in Bangladesh Cricket League
In-house Management: Utility Consumption

As part of the continuous effort of positively upholding the Green Banking initiatives, the bank has developed Green Office
Guide as a general guideline to facilitate the in-house green banking objectives of the bank and to the efficient uses of resources,
which accordingly has been circulated among all branches.
Employees Training and Capacity Building

Total 3,440 numbers of employees have been trained on Green and Sustainable Finance during 2022. These training programs/
workshops have been conducted by IBTRA Dhaka, CRC & BRC and covered all investment in-charges and dedicated officials
for Green & Sustainable Desks and almost all the entry level officials through refreshers training programs. Some Executive
Development Programs (EDP) were also conducted by IBTRA on Sustainable Finance Policy and Sustainability Rating.
CSR Activities
The bank also contributes to the society by providing CSR activities. IBBL allocated Climate Risk Fund from the CSR Fund
for supporting the environmental disaster like flood, cyclone and cold wave etc. in line with Bangladesh Bank’s directive.
Status of Sustainable Finance of the Bank

Bangladesh Bank fixed 5% achievement target of Green Term investment disbursement in respect of Total Term investment
disbursement and 20% Sustainable Finance disbursement (including Green Term disbursement) in respect of total investment
disbursement.

1. Green Investment Disbursement Target Achievement
Achievement Target (Green Term Investment Achievement-2021 Achievement-2022

Disbursement out of total Term Investment Growth
Disbursement) Volume % Volume %
5.00% 17,305.73 14.52% 20,711.99 16.72% 2.20%
Sector-wise Green Finance in 2022

Sl. Disbursed Disbursed in

Sectors of Green Finance Growth
No. in 2021 2022
1 Renewable Energy 147.44 83.63 (43.28)%

2 Energy & Resource Efficiency 2,722.41 5,363.86 97.03%
3 Alternative Energy - - -
4 Liquid Waste Management 1,171.71 1,173.80 0.18%
5 Solid Waste Management - - -
6 Recycling and Manufacturing of Recyclable Goods 3,794.10 5,580.60 47.09%
7 Environment Friendly Brick Production 162.71 166.65 2.42%

8 Green/ Environment Friendly Establishments 9,298.84 8,343.45 (10.27)%
9 Green Agriculture 8.52 - -
10 Green CMSME - - -
11 Green SRF - - -
Total 17, 305.73 20,711.99 19.68%
2. Sustainable Investment Disbursement Target Achievement

(Amount in Million)
Achievement Target (Sustainable Investment Disbursement Achievement-2021 Achievement-2022 Growth

(including Green) out of total Investment Disbursement)
Volume % Volume %
20.00% 87,498.26 7.96% 166,737.11 11.72% 3.76%
Sector-wise Sustainable Linked Finance (excluding Green Term) in 2022

Sectors of Amount Amount

Sl. No. Growth
Sustainable Linked Finance Disbursed in 2021 Disbursed in 2022
01. Sustainable Agriculture 54,102.45 90,352.24 67.00%

02. Sustainable CMSME 6,813.24 25,176.22 269.51%
Working Capital & Demand Inv. for Green
03. 6,795.29 23,564.28 246.77%
Products
Priority Green & Eco-Friendly Products for
04. 2,481.55 6,932.38 179.36%
Trading Sector
Total 70,192.53 146,025.12 108.04%

Our major green banking achievement in 2022 Corporate Social

 The bank developed its Sustainable Finance Policy Responsibility (CSR)
under the guidelines of Central Bank .
Corporate Social Responsibility (CSR) is considered as a
 IBBL has been rated and listed among top ten high concept in which companies voluntarily integrate social and
performed Banks by Bangladesh Bank in terms of environmental concerns into their business operations and into
Sustainability Rating for the year 2020 & 2021. the interaction with their stakeholders. CSR needs to be used
as a social strand of the Sustainable Development concept that
 Achievement in Green Term investment disburse-
is principally established on a healthy stakeholders approach.
ment is 16.72% against 5% and in sustainable in-
vestment disbursement is 11.72% against 20% of As a social welfare institution, a corporate citizen of the
achievement target. country and one of the biggest Islamic Bank of the world, we
believe that Islami Bank Bangladesh Limited (IBBL) has a
 IBBL availed Investment in Euro under Green
responsibility to its stakeholders as well as to the communities
Transformation Fund (GTF).
in which it work and live. Banks commitment is built on a
 Initiatives taken to make active the existing Dedicat- deeply ingrained sense of social responsibility among its
ed Sustainable Finance Help desks through issuing stakeholders, employees, customers alike.
circular. IBBL has a revised and modified “CSR Policy” which
was approved in October’ 2022 as per Bangladesh Bank
Our Strategic Green Banking Plan for 2023 Guidelines. Our new modified & revised CSR policy included
 Giving special focus to achieve Sustainable Finance our employee’s related social demand like medical facilities
disbursement target fixed by Bangladesh Bank. and educational support to below executive’s children.
 Keeping the high ranked position among banking Since inception, IBBL has been contributing to serve the
sector in terms of Sustainability. Distressed People, improvement of Education, extend
Health and Medicare facilities, promoting Arts, Literature,
 Taking initiatives to upgrade the bank’s Guide- Culture & Sports, Science, Technology, creating facilities
lines on Environmental & Social Risk Management for productive self & skill employment through Human
(ESRM) in conformity with the updated ESRM Resources Development, help to Humanitarian and Disaster
Guidelines (June-2022) of Bangladesh Bank. Management, Relief and Rehabilitation, Environment and
Climate Change, Mitigation & Adaptation Risk Fund. In
 Reducing at least 10% paper use and increase virtual 2022 Tk.3,273.69 million provided favoring 0.63 million
communication. beneficiaries under different sectors. However, total
accumulated CSR expenditure incurred by the Bank is
 Reducing the emission of carbon footprint by careful Tk.15,583.94 million since 1983-2022 among 18.11 million
use of electricity, gas, water and other utilities. Util- beneficiaries in different sectors.
ity bills will be reduced by 05% at least.
 Taking initiatives for carbon footprint measurements Health Program of IBBL

of the bank by experts. Health care is a basic need of all societies. IBBL spent an
amount of Tk.2,463.50 million for 7,244,612 beneficiaries
 Training programs for capacity building of all sorts from 1983-2022 for this purpose out of which Tk.8.27 million
of IBBL employees will go on. for 6 beneficiaries were contributed in 2022.
Special focus will be given on greening the polluted

industry and avoiding sanction of projects/ products/
Environmentalism at IBBL
proposals that are not environment friendly. The main theme of environmental responsibility is to protect
the environment from destruction with a view to keeping it
healthy for future generation. IBBL contributed an amount of
Tk.160.67 million to 3,917,463 beneficiaries from 1983-2022
for environmental issues of the country out of which Tk.20.20
million for 22 beneficiaries were contributed in 2022.

Education & Scholarship Program Our Commitment to Employees

From the very beginning, IBBL is engaged with promotion Our people are our capital- no matter what their designation
of education sector of the country. IBBL spent an amount or job function. We strive to make IBBL a great place to work
of Tk.4511.16 million for 581430 beneficiaries from 1983- and build a career. Our employees describe the workplace as
2022 for this purpose out of which Tk.46.26 million for 63 collaborative and colleagues supportive environment where
beneficiaries was contributed in 2022. the views of all employees are taken into consideration.
Humanitarian and Disaster Relief Human Rights

The Bank is very much conscious about human rights at every
Disaster relief program includes winter cloths distribution,
level of its operations. We do not employ workers under the
Donation to Prime Minister Relief Fund and rehabilitation
legal minimum age, prohibit the use of forced labour, respect
program etc. An amount of Tk.7069.51 million for 5489834
employees’ rights to join or not to join a labour union, respect
vulnerable persons was spent by IBBL from 1983-2022. Out
the principles of collective bargaining, provide healthy & safe
of which Tk.3197.05 million for 632580 beneficiaries were
work place. The Bank does not make any discrimination on
contributed in 2022.
the basis of age, gender, race or Socio-Economic background.
Sports, Arts, Literature & Cultural Program It limits work to standard accepted hours and denounces any
sort of abuse of its workforce whatsoever.
Sports, Arts, Literature & Cultural Programs make a nation
physically and mentally sound and healthy. This is why IBBL Practicing Good Corporate Governance
sponsors various Sports, Arts, Literature & Cultural events
every year. An amount of Tk.938.16 million to 665,540 We follow a structured and transparent corporate governance
beneficiaries was spent by IBBL from 1983-2022 for this culture where roles, duties and scope of policy level &
purpose. management level are well defined and the same are followed
meticulously to make the organization thriving one and
moving towards its goal.
CSR to achieve Sustainable Goals
The Sustainable Development Goals (SDGs) also known as Our Commitment to Communities
the Global Goals adopted by UN Member States in 2015 as
IBBL is committed to being a responsible corporate citizen. We
a universal call to end poverty, protect this planet and ensure
make grants and support volunteerism in all our communities
that all people enjoy peace and prosperity by 2030.IBBL
throughout the country. We take several initiatives in
is trying to contribute in achieving overall SD goals of the
individual and organizational level for development of
country through different kinds of CSR activities.
the community especially the less fortunate segments of
the community. We support: (1) Education, (2) Health,
CSR: ‘Built In’ mechanism of IBBL (3) Humanitarian & Disaster Relief, (4) Sports, (5) Arts,
In order to popularize the concept of Islamic Banking, Literature & Culture, (6) Environment and (7) Others etc. An
IBBL has started its charitable activities since inception amount of Tk.15,583.94 million for 18,110,432 beneficiaries
through creation of “Sadaqah Tahabil”. Thereafter, it was spent by IBBL from 1983-2022 in the above mentioned areas.
done through Islami Bank Foundation (IBF) converting Out of which Tk.3,273.69 million for 632,674 beneficiaries
the “Sadaqah Tahabil” into a full-fledged foundation since were contributed in 2022.
20th May, 1991. Further to its activities under IBF, IBBL
established Corporate Social Affairs Division (CSAD) under
Operations Wing on 16th July, 2009 in compliance with the
instruction of Bangladesh Bank, the Central Bank.
The Triple Bottom Line

The CSR program of IBBL aims at the welfare and well-
being of the people of the earth, the planet itself and all its
stakeholders. Keeping that in view of this report focuses on
triple bottom line: People, Planet and Profit, the purpose of
this Sustainability Report is to provide an account in a single
document of IBBL’s overall contribution to sustainable
development of the country during the year’2022.

Sector wise CSR expenditure of IBBL from 1983 to 2022
(Amount in Million Taka)
Humanitarian & Arts, Literature
Education Health Sports Environment Others Total
Year Disaster Relief & Culture
Amount Beneficiary Amount Beneficiary Amount Beneficiary Amount Beneficiary Amount Beneficiary Amount Beneficiary Amount Beneficiary Amount Beneficiary
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
1983-
217.61 452291 285.34 265,197 873.62 6,055,481 60.83 413,622 68.75 187,107 - - 61.31 56,674 1,567.46 7,430,372
2009
2010 64.06 158,760 67.80 98,787 64.11 721,160 12.00 2 11.22 41,964 7.36 15,240 11.87 655 238.42 1,036,568
2011 21.79 32,928 56.17 128,925 25.78 128,556 248.75 636 7.15 643 0.48 3 50.55 118,115 410.67 409,806
2012 87.93 597,866 83.80 3,014 39.75 19,230 1.61 144 8.24 11 12.48 493,822 75.38 34,438 309.19 1,148,525
2013 140.10 254,078 135.26 7,756 71.50 95,255 78.97 7 5.86 21 22.94 592,722 21.79 768 476.42 950,607
2014 190.16 498,768 161.34 7,928 89.47 125,079 40.20 5 15.21 17 21.12 723,673 7.02 51 524.52 1,355,521
2015 323.90 606,320 175.24 8,930 226.04 99,469 26.60 6 5.12 643 21.42 757,558 22.11 33 800.43 1,472,959
2016 425.95 481,644 161.00 14,235 16.84 209 0.00 0 0.12 4 26.39 690,251 40.47 751 670.77 1,187,094
2017 568.46 420,566 382.82 12,924 28.97 116 21.00 2 11.50 3 26.40 644,162 18.62 20 1,057.77 1,077,793
2018 663.86 271,962 2118.57 7,792 1.80 22 8.20 3 6.40 10 1.00 4 13.24 32 2,813.07 279,825
2019 180.04 421,485 585.66 8,858 0.86 4 0 0 150.00 1 0.45 3 114.14 7 1,031.15 430,358
2020 505.79 403,594 186.91 10,039 15.75 18 0.8 1 145.37 10 - - 0.62 3 855.24 413,665
2021 482.81 256,992 64.99 6,982 1,000.74 7* 00 0 4.26 20,678 0.43 3 1.91 3 1,555.14 284,665
2022 3,197.05 632,580 46.26 63 8.27 6 00 0 00 0 20.20 22 1.91 3 3,273.69 632,674
Total 7,069.51 5,489,834 4,511.16 581,430 2,463.50 7,244,612 498.96 414,428 439.20 251,112 160.67 3,917,463 440.94 211,553 15,583.94 18,110,432
* In 2021, No of health sector beneficiary is 07 (seven) out of which one is ‘ Islami Bank Foundation’. A huge amount was donated to ‘ Islami Bank Foundation’ for proper management of
health sector of the country in special Covid-19 situation.
ANNUAL REPORT 2022

189
Information & Communication Technology

Ensuring sustainable banking
Information & Communication Technology of IBBL Back Office

maintains wide range of network connectivity and IT security IBBL has developed a back office system for foreign trade
related issues of 394 Branches, 229 Sub-branches, 16 Zonal module which covers the automation of all transaction
Offices and all the units of Head Office along with hundreds received from AD branches by which system can maintain
of ATM / CRM Booths and POS. It provides different types shadow ledger of nostro and FC clearing accounts. Through
of IT enabled attractive products and services like Online (any this application, IBBL can find out the daily FC position,
branch) banking, Web based banking (i-banking), App based mark-to-market valuation, trade confirmation and settlement
banking (Cellfin, iSmart), Mobile banking (mCash), Phone processing, deal settlement verification including normal and
banking, SMS banking, Payment Gateway (iPaysafe) various cover deal, regulatory report, progressive balance.
cards like Debit Card, Khidmah Card, Salary Card, Travel
Card, Remittance Card, Duel Currency Debit Card etc. which IT Infrastructure of IBBL
are briefly mentioned below:
Digital Infrastructure is considered the backbone of Banking
& Financial Services. The more efficient and innovative the
Core Banking System (CBS) infrastructure, the better the services provided to the users
The CBS of IBBL namely electronic Integrated Banking & clients. As the Banks embark on a digital transformation
System (eIBS) is an in-house developed Centralized Core journey, its digital infrastructure has to be transformed to
Banking System wherein all banking modules have been fully enable Banks to operate effectively, sustain growth, provide
integrated including three major modules: General Banking, innovative services, follow regulations and partner with
Investment and Foreign Exchange. These modules are running creative start-ups and Fintechs.
at all branches and sub-branches . The RDS/UPDS module of
eIBS has also been developed by the Bank’s own manpower Information Security & Risk Management
and implemented in all RDS/UPDS units. It was developed Information security and risk management is the most
in 2005 and ranked as number one CBS running in more than important aspect to ensure business continuity and reduce
57 banks of Bangladesh in terms of quality, performance and business damage by preventing and minimizing the impact
user satisfaction as per published research data of Bangladesh of ICT security incidents. Bank’s Information Security &
Institute of Bank Management (BIBM) in 2021. Risk Management Division (ISRMD) is a dedicated Division
responsible to cater information security challenges faced
Corporate Banking by IBBL. The ISRM Division is leading the formation &
implementation of the information security framework for
Corporate banking is a digital business banking platform the Bank based on the principles of ISO27001 (ISMS), PCI-
to meet continuously growing corporate customer needs. It DSS Guideline, regulatory & other industry standards. The
provides access to all banking product, from cash management main purpose of the division is to ensure the confidentiality,
to trade finance, through any channel- whether a smart phone integrity, and availability of all critical information and
or a connected ERP system by self sign. computer resources of IBBL. In addition, to implement
advanced secure computing practices with sensitivity to
CIPPS IBBL’s environment that promotes business and intellectual
The Centralized Investment Proposal Processing System freedom, diversity, Information/Data Privacy based on
(CIPPS) is to automate the life cycle of an investment proposal classification, and individual rights. ISRMD helps protect
and to maintain limit information of the customer which saves and secure major banking services like Foreign Remittance,
time and cost. Khidmah Card proposal processing is fully BACH, RTGS, BEFTN, NPSB, VISA, MasterCard, SWIFT,
automated (from recording proposal to sanction) at CIPPS. CellFin, Internet Banking, Ecommerce (iPaySafe), Agent
Banking, Utility Bill Payment, SMS and Email System
through various security tools.

Alternative Delivery Services
Smart and modern digital products
A. Different Prestigious Awards to IBBL for ADC Products and Services
Digital Innovation Prepaid Cards Business 2021- Islamic Banking Cards Business
2021-2022 2022 2021-2022
A. Remarkable achievement of IBBL ADC products & Services in 2022

 No. of ATM/CRM Booths (place)
IBBL Holds  Total VISA Branded Debit Card IBBL Holds  No. of ATM
 Total Prepaid Card Issuance  Total Debit Card
 Total No. of CRM  Debit Card Transaction and
 Total Internet Banking (iBanking Volume
and CellFin) customer & Transaction
A. ADC Statistical Performance for 2020 ,2021 & 2022

Number
Sl. ADC Products & Services
2020 2021 2022
1 Debit Card (Active only) 820,748 1,121,894 1,166,708
2 SMS Banking 1,210,435 1,523,211 2,620,512
3 Khidmah Card 4,151 7,412 9,433
4 Prepaid Card 199,527 384,033 2,147,074
5 e-KYC Account By CellFin 20,091 174,615 367,946
6 CellFin Customers 278,824 580,907 1,356,383
7 iBanking Customers 143,746 150,045 177,418
8 mCash Customer 121,023 112,005 135,596
9 mCash Agent 3,299 4,632 4,911
10 mCash Distributor 1000 405 10
11 No. of ATM (Cumulative) 1,346 1723 2,086
12 No. of CRM (Cumulative) 406 595 770
13 Number of Booths 1,078 550 326
14 Merchant POS 2,415 1,586 81
15 Branch POS 122 568 305
16 Agent POS 423 307 40

Green Banking in Solar Panel
 IBBL Card Service In 2022, we have successfully launched BINIMOY services

IBBL has introduced Instant Debit/Prepaid Card from all which in integrated under CellFin apps as a SDK service
Branches & Sub Branches against all new and existing eligible provider of BINIMOY. Now, our customers are enjoying
account holders. With the help of all branches/sub-branches, BINIMOY services with our mCash and bank account.
we have sold about 25,000 instant dual currency prepaid card
which helps IBBL to create more revenue.  iBanking
Internet Banking offers the convenience of banking from
 IBBL Khidmah Credit Card anywhere, anytime. Customers having Account(s) with IBBL
IBBL khidmah Card is a Shariah based credit card with all can enjoy this service Just register and enjoy the benefit of
transactional facilities. Numbers of Khidmah credit Card accessing his account(s) 24 hours a day, 7 days a week.
has been increased significantly over the last few years. We
have Launched VISA Signature & Master Khidmah Card and  mCash, the only product to make IBBL available to
partnered with Intercontinental Dhaka for Balaka VIP Lounge all stage people
access at Hazrat Shahjalal Int’l Airport to facilitate our VISA mCash, the MFS service of IBBL. Since inception, MFS
Signature & Master World Khidmah Card holders. clients & transaction increasing rapidly. Now 25% of
Bangladeshi adult use MFS and total MFS client 179 million
 CellFin: The most versatile & robust Digital Solution and reaching daily transaction about 30,000 million. mCash
CellFin is the App based Omni channel digital banking is not the race. MFS (bKash, Nagad, Rocket) has already
platform where any Bangladeshi citizen with a National begun to swallow IBBL market share in online money transfer
Identity Card (NID) or IBBL bank account can register & Foreign Remittance business. To keep IBBL in this race
CellFin account through smart phone. we take several steps and try to take a mentionable market
With the CellFin app, we have successfully launched position.
BanglaQR services for the customers as one of the member
bank among first three banks under NPSB in 2022. We  Contact Center
are playing role both as issuer and acquirer. Now, we are Contact Center Department has been providing customer
participating with the CashLess Motijheel project as declared service round the clock since 2013. One of the main purposes
by Bangladesh Bank. for establishing Contact Center is to provide 24/7 banking

service outside from the bank premises so that the customers  bKash & Nagad cash withdrawal & Fund Transfer from
including foreign remitters can get answer of their queries, IBBL ATM/CRM, iBanking.
complaints and requirements. Since 2013 over 17 million
calls have been served from IBBL Contact Center.  Multi Debit card & SMS to Joint Account/Corporate
Account.
 POS/Marchant QR
 Integration of Govt. Safety Net Payment
To keep up with Card Business, Merchant Acquiring, eCom
Business of IBBL, we have deployed 995 Branch POS, 970  RDS Investment disbursement through mCash
Agent POS and 4,082 Merchant POS. We have already de-
ployed 870 numbers of QR Merchants and it is our targeted  Introduction e- ticketing of railway & Bus
to deploy 10,000 Bangla QR Merchant in the year of 2023.
 Debit Card issue to mCash Account holder, to facilitate
them to Cash Withdrawal & deposit at ATM/CRM &
 Introduction of New Products and Services in 2023 POS Transaction (specially for Salay Disbursement).
 PRA (Personal Retail Account) open and run through
 Debit Card issue to NAGAD/bKASH clients, to facilitate
CellFin, mCash & iBanking.
them to Cash Withdrawal & deposit at IBBL ATM/CRM
 Installment of Investment Payment through CellFin, & POS Transaction.
iBanking.
 One stop card and ADC Service Portal development and
 Introduce CellFin and mCash Business app for Merchant 24/7 separate dedicated card
and agent
 Bangla QR
 Integration of Indian Visa Application Centre (IVAC)
payment
 Utility Bill (Prepaid bill), Insurance premium payment
 Issuing Union Pay International (UPI) card
 Direct Inward Remittance Payment Service for MFS,

Account, CellFin.
 Corporate iBanking for business and corporate Account

MANAGEMENT
REPORT & ANALYSIS

Management Report and Analysis
Business and Financial Overview Laundering Prevention Act, Anti-Terrorist Act etc. to remain
Overcoming volatile global & national economic situation and as a compliant Bank.
regulatory changes in 2022, IBBL was able to show consistent Green Banking
performance in most of the business areas. It was possible The Bank used to emphasize on social, ethical and
because of the grace of Al-mighty Allah, Bank’s massive environmentally responsible approaches to business activities.
induction of new customers, modernization of payment Keeping in view the spirit of Green Banking, IBBL opened a
system, strengthened bank customers’ relationship, enhanced Green Banking Department and took effective steps in line
service quality apart from complying banking regulations and with Central Bank’s directives. By now, the Bank has been
Shari’ah rules. able to reduce paper use substantially through automation and
Profit before Tax simplification of its operational models.
In 2022, the Bank earned highest operating profit in the CSR Activities
country’s banking sector. The profit before tax of the Bank IBBL through its various CSR programs has been contributing
was Tk.14,593 million during 2022. However, comprising significantly to upgrade socio-economic condition of
of the income of two subsidiaries of IBBL that is IBSL and underprivileged population of Bangladesh. The Bank spent
IBCML, the consolidated profit before tax in 2022 was Tk. Tk. 3,273.69 million in 2022 under CSR particularly in
14,938 million. education, health, environment, disaster management and
Deposit sports sector. IBBL is highly appreciated by the Central Bank
At the end of 2022, deposit of the Bank reached to Tk. for its highest contribution in CSR activities among all Banks
1,410,445 million with an increase of Tk. 28,466 million in Bangladesh.
registering 2.06% growth over 2021. In 2022, IBBL’s market Relationship between the entities performance with the
share in deposit stood at 9.90% management’s objectives and strategies
General Investment Management’s objectives are consciously directed toward
Total general investment of the Bank stood at Tk. 1,461,365 effective and efficient achievement of organizational
million with an increase of Tk. 270,192 million registering objectives. On the other hand, management’s strategy
22.68% growth over 2021. At the end of 2022, the Bank involves formulation and implementation of the major
holds 11.37% market share of investment. Major sectors goals and initiatives formulated by the Board of Directors
of Investments are corporate, SME, agriculture, housing, on the basis of resources and vis-a-vis assessment of the
transportation, rural and urban development. internal and external environment in which the organization
Foreign Exchange Business competes. Management strategy provides overall direction
Total foreign exchange business of the Bank stood at Tk. to the enterprise and involves specifying the organization’s
1,570,651 million in 2022. objectives, developing policies and plans designed to achieve
Information and Communication Technology these objectives, and then allocating resources to implement
Since 2009, IBBL has been operating its own ATM network the plans. Being a welfare oriented bank, IBBL always strives
which is now running through 2856 own ATM booths and for highest standards of equity and distributive justice in the
above 12,000+ shared ATMs. Necessary steps were taken to field of economic activities.
integrate IBBL with NPS (National Payment System) network Holding the above spirit, IBBL formulated well structured
of Bangladesh Bank for facilitating access of customers to policies and procedures approved by the Board to transform
all banks’ ATM booths. Other ICT based products includes every Branch into a Center of Excellence for capacity building
Fintech , Cellfin services, online banking, e-banking, of the employees of all tiers. IBBL has constantly been making
mCash, ATM, SMS banking, Call Center, Phone Banking, effort to establish strong reserve of managerial succession and
e-recruitment, etc. adopt technological changes to ensure the development of the
Investors’ Capital Management Bank as a stable financial institution, emerge as a healthier &
IBBL always strives to offer high Return on Equity (ROE) to stronger bank at the top of the banking sector and continue to
the shareholders through prudential business decision while maintain stable positions in all major business indicators.
deploying their capital. The Bank maintained Capital to Risk- Priorities in 2023
weighted Asset Ratio (CRAR) above minimum requirement As a shariah based financial institution, IBBL focuses on
of 2.50% throughout the year 2022 which stood at 12.54% ethics, excellence and modernism in banking ; accountability
(solo) as on December 31, 2022. and transparency in service; equity and justice in wealth
Operations and Compliance distribution; and responsibility towards society with regard to
The Bank adheres to the highest standards of risk management achieving highest socio economic welfare and sustainability.
and compliance throughout 2022. The compliance policies IBBL also prioritizes in providing innovative speedy solutions/
of the Bank are formulated following the standards and services at a cheaper but competitive price in a full range of
policies of national and international regulatory bodies. The banking services to the customers.
Bank properly adopted the regulatory guidelines like Money Keeping the comprehensive well being in view, our theme for

View exchange meeting with Hajj Agencies Association of Bangladesh
the year 2023 is “Towards Universal Banking”. In line with the D. Cautious Expansion
theme we have selected the following priorities and strategic Balanced
focuses to reach the mass people with our commitment to Consolidated
ensure overall betterment and sustainability: Rational
A. Rebranding E. Excellence in Customer Service
Celebration of 40 years Sustainable customer relationship
Not merely physical outlook but in appearance, in mentality Product knowledge
and in action Develop mutual trust and respect
Upholding our vision, philosophy and values Empathetic
B. Maximizing Resource Mobilization F. Ensuring Cyber Security
‘Out of the room’ thinking Technical vs. Operational
Proactive strategy Knowledge and awareness
Relationship banking G. Widening Mass Acceptance
C. Rationalizing Investment Universality in operation and action
Prioritizing investment to essential commodities and import Partnering with all stakeholders
substitute items
Increase domestic products
Cautious in new project investment except BMRE
Opportunities for alternate export commodities

Report on Financial Inclusion

Financial inclusion appears to be a key element of social and Mudaraba School Students Savings Account (MSSSA)
inclusion and economic emancipation necessary in fostering with minimum balance of Tk.100/-. The program meantime
inclusive growth participated by and benefiting all population got good response from the students with 10.74 lac accounts
segments. IBBL is playing a cardinal role in disseminating with 5,140.46 million deposit upto 2022 with near about 10%
financial inclusion all over the country overall by ensuring market share.
sustainable development of mass people of the country
5. Banking for Farmers
as a whole. The initiatives taken for financial inclusion are
depicted below: In order to ensure smooth economic activities of the country
by way of inclusion of unbanked farmers into banking
1. Rural Development Scheme (RDS):
services, Islami Bank Bangladesh limited has introduced
In order to ensure financial inclusion & facilitate financial Mudaraba Farmers Account (MFSA) with minimum balance
empowerment, self employment and raising income of the of Tk.10/-.The Bank has opened 558,852 farmers’ accounts
rural people with a view to alleviate poverty, IBBL has been till December, 2022 with deposit of Tk.2,113.62 million.
conducting collateral free micro investment program under
6. Banking for Industry Employees
Rural Development Scheme (RDS) among the rural poor
people. At present this scheme has covered about 13.23 lac In order to improve the life standards of the workers of RMG,
members of 25,842 villages of the country where major leather and footwear sector IBBL has launched Mudaraba
beneficiaries are women. Industry Employees Saving (MIES) with an initial deposit
of Tk.100/-. The Bank has opened 1,72,800 accounts in this
2. Islami Bank mCash
sector up to December 2022.
Islami Bank mCash is the Mobile Banking service of Islami
7. Banking for Senior citizens
Bank Bangladesh Limited where the customers of any mobile
operators can take the 24 hours of mobile banking services Senior citizens feel solitary at the eleventh part of life.
from anywhere of the country without going to any branches. Liquidity solvency may safeguard them from all despair in
that age. They expect smooth and easier life with financial
3. Agent Banking Activities
abundance. Considering this view, MSCMPDS has been
Islami Bank Bangladesh Limited launched Agent Banking designed for the Senior Citizens so that they may remain
services with a view to reaching banking services to the door- themselves from financial anxiety.
steps of unbanked people across rural areas. Account opening,
8. Banking for Expatriate
mCash account opening, cash receipt & payment, foreign
remittance payment, fund transfer, utility bill payment, cheque Housing is one of the basic needs. Like other citizens, the
book requisition, fund transfer, balance inquiry, debit & credit expatriates desire for comfortable accommodation of their
card application and investment processing, disbursement & own. To meet their abode expectations and make life easier,
recovery facilities are available at Agent Banking Outlets. As this deposit scheme has been developed. In this scheme, they
many as 2,273 Agent Banking outlets have been opened up to can save a portion of their income for housing purposes. On
2020 with deposit of Tk.48,156.21 million. maturity of the scheme, they can build up an adequate equity
to construct a house or purchase a flat.
4. Students Banking
Students are the future of a nation. With a view to
encouraging savings & ensuring financial services, the Bank
has introduced Students Mudaraba Saving Account (SMSA)

Products & Services
Deposit Products in Local Currency  Hire Purchase under Shirkatul Melk (HPSM)
 Al-Wadeah Current Account (AWCA)  Murabaha Post Import (MPI)
 Mudaraba Savings Account (MSA)  Murabaha Import Bills (MIB)
 Mudaraba Special Notice Account (MSNA)  Murabaha Import LC
 Mudaraba Special Savings (Pension) Account (MSSA)  Murabaha Foreign Currency Investment
 Mudaraba Term Deposit Account (MTDA) (MFCI) under EDF
 Mudaraba Savings Bond Account (MSBA)  Murabaha Foreign Currency Investment (MFCI)
 Mudaraba NRB Savings Bond (MNSB) under Balance of MFCD A/C
 Mudaraba Hajj Savings Account (MHSA)  Bai-Muajjal Back to Back Bills
 Mudaraba Waqf Cash Deposit Account  Bai-as-Sarf (Foreign Documentary Bill: FDB)
 Mudaraba Monthly Profit Deposit Account  Bai-as-Sarf (Foreign Currency Cheques/Drafts: FCD)
 Mudaraba Muhor Savings Account
 Students Mudaraba Savings Account Welfare-oriented Investment Schemes
 Mudaraba Farmers Savings Account  Household Durable Scheme (HDS)
 Mudaraba Upohar Deposit Scheme (MUDS)  Housing Investment Program for Govt.
 Mudaraba Industry Employees Saving Account (MIESA)  Employees (HIPGE)
 Mudaraba Payroll Account (MPA)  Housing Investment Scheme (HIS)
 Mudaraba School Students Savings Account  Real Estate Investment Program (REIP)
 Mudaraba Priority Savings Account  Transport Investment Scheme (TIS)
 Mudaraba Bibaho Savings Account (MBSA)  Car Investment Scheme (CIS)
 Mudaraba Senior Citizen Monthly Profit  Investment Scheme for Doctors (ISD)
Deposit Scheme (MSCMPDS)  Small Business Investment Scheme (SBIS)
 Mudaraba Education Savings Scheme  Agriculture Implements Investment Scheme (AIIS)
 Mudaraba Expatriate Housing Deposit Scheme (MEHDS)  Rural Development Scheme (RDS)
 Micro Enterprise Investment Scheme(MEIS)
Deposit products in Foreign Currency  Urban Poor Development Scheme (UPDS)
 Mudaraba Foreign Currency Account (MFCA)  Micro Industries Investment Scheme(MIIS)
 Mudaraba Exporters’ Retention Quota Account (MERQ)  Women Entrepreneurs Investment Scheme
 Foreign Currency Account (FCA)  Palli Griha Nirman Beniyog Prakalpa
 Foreign Currency Account (ERQ)  NRB Entrepreneurs Investment Scheme (NEIS)
 Foreign Currency Account of EPZ Enterprise  Solar Panel Investment Scheme(SPIS)
 Resident Foreign Currency Deposit Account (RFCD)
 Non-Resident Foreign Currency Account of Offshore Banking Unit (OBU) Products
Exchange Houses/Banks Depsoit Products
 Non Resident Investors Taka Account (NITA) for  Al Wadiah Foreign Currency Account (AWFCA).
Foreign port-folio Investors.  Mudaraba Foreign Currency Deposit Account (MFCDA).
 Non-Resident Taka Account (NRTA) for  Mudaraba Foreign Currency Term
Foreign Direct Investors. Deposit Receipt Account (MFCTDRA)
 Foreign Currency Account for EPZ Companies
(FCA-EPZ) Remittance Services
 Foreign Currency Account for Recruiting Foreign Remittance Services
Agency of women workers abroad  Central Crediting Account
 Issue checque book centrally for expatriate.
Investment Products & Schemes  Payment of 3rd Bank Remittance through BFTN.
 Investment Products  Payment of Spot Cash Remittances
 Bai-Murabaha  Centrally NRB Accounts Opening
 Bai-Muajjal  SMS Notification
 Bai-Istijrar  SMS Push Pull Service
 Bai-Salam  Maintaining NRD & NRT Account
 Bai-Salam (Pre-shipment)  Agent Banking remittance payment
 Bai-Istisna  Remittance Card
 Mudaraba  SWIFT msg. payment
 Musharaka  API service.
 Musharaka Documentary Bill (MDB) Inland
 Musharaka Documentary Bill (MDB) in Foreign Currency
 Musharaka Investment in Potato Storage

Inward Remittance  Free/reduced charges of ATM,
 Electronic fund Transfer  Standing Instruction facility for depositing
 Spot cash MSS & Hajj A/c,
 Encashment of cash Foreign Currency  Existing BEFTN facilities through Bangladesh Bank,
 Collection of FC Cheques / drafts  Existing BACPS service through Bangladesh Bank,
 Payment of Foreign TT & DD (FTT & FDD)  Existing RTGS service through Bangladesh Bank,
 Crediting salary instantly throughout the Country,
Outward Remittance  Centralized Investment Proposal Processing
 Travel purpose System (CIPPS),
 Study purpose/Student File  Centralized foreign trade processing system,
 Medical purpose  IBBL Online money transfer,
 Issuance of Foreign TT & DD (FTT & FDD)  mCash withdrawal From ATM.
 Selling/Issuance of Foreign Currency note
 Commercial Remittance Other Value Added Services
 Different Private Remittance  Cellfin Services
 Payment Order (PO)
Treasury Activities  Demand Draft (DD)
 Dealing Room Operations  Locker Service
 Foreign Exchange Operations  Quard against TDR/MSS/MMPDS/MSB/ MNSB
 Money Market Operations  IBBL Web Portal (i-Banking)
 Letter of Credit
Money Market Operations  Back to Back Letter of Credit
 Placement to others Islami Bank & Financial Institutions.  Bank Guarantee
 Bangladesh Government Islamic Investment Bond  Foreign Bank Guarantee
(BGIIB)  Export Bills Collection
 Islamic Interbank Fund Market (IIFM)  Bonded Warehouse facilities to exporters
 Duty Draw Back facilities to exporters
Forex Investment Products  Substitute Cash Assistance
 Bill Financing under Mudaraba Documentary Bills  SWIFT
(Mura-UPAS) against Usance import Bills  Automated Clearing
 Bill Financing under Mudaraba Documentary  IBBL Contact Center
Bills (HPSM-UPAS) against Usance import Bills  Agent Banking Services
 Bill Financing under Mudaraba Investment for  Phone Banking/SMS Banking
MDB in FC against Inland Export Bills  Point of Sale (POS)
 Import Financing  IBBL iSmart (Android Apps)
 Export Financing  Payroll Software
 Short term Murabaha  Dissemination of information through
 Post-Shipment Financing (Bai-as-Sarf, MDB in FC) Web-site EFT
 Foreign Currency endorsement
Cash Service  School Fees Payment Services
 2,856 Own ATM and above 12,000 shared ATM
 126 IDM (Islami Bank Deposit Machine) Services through Islami Bank Foundation
 47 Sheba Ghars (Islami Bank Electronic Booth)  Islami Bank Hospitals
 2,694 Agent Banking outlets  Islami Bank Medical College, Rajshahi
 Connectivity with NPSB & VISA network  Islami Bank Community Hospitals
 24 hour support service for ATM  Islami Bank Nursing Training Institute
 Visa Debit Card  Islami Bank Institute of Health Technology
 Khidmah Credit Card  Islami Bank Homeopathic Clinics
 Hajj Card  Monorom: Islami Bank Crafts & Fashion
 Travel Card  Islami Bank Institute of Technology
 Business Expenses Card  Islami Bank International School and College
 i-PaySafe: e-Commerce Payment Gateway  Islami Bank Model School
 IBBL Mobile Banking: mCash  Islami Bank Mohila Madrasah
 Bangladesh Cultural Centre
Corporate Services  Distressed Women Rehabilitation Centre
 Corporate Salary Payment,

Stakeholders Information
Distribution of Shareholding
Sl.
Particulars As on 31.12.2022 As on 31.12.2021
No.
No. of shares (%) to total Taka No. of shares (%) to total Taka
01 Local Sponsors / 531,554,755 33.0160% 5,315,547,550 471,275,410 29.2719% 4,712,75,4100
Directors
02 Foreigners
(a) Foreign 354,926,856 22.0453% 3,549,268,560 354,926,856 22.0453% 3,549,268,560
Sponsors/
Directors
(b) Foreign 325,867,682 20.2403% 3,258,676,820 328,192,045 20.3847% 3281920450
shareholders
(Excluding
Foreign Directors)
Sub-total 680,794,538 42.2856% 6,807,945,380 683,118,901 42.4300% 683,118,9010
03 Govt. of 20,317 0.0013% 203,170 20,317 0.0013% 203,170
Bangladesh**
04 Institutions 234,912,465 14.5909% 2,349,124,650 248,258,724 15.4199% 248,258,7240
(Excluding
Foreigners)
05 General Public 162,708,593 10.1062% 1,627,085,930 207,317,316 12.8769% 207,317,3160
Total 1,609,990,668 100.0000% 16,099,906,680 1,609,990,668 100.0000% 16,099,906,680
Foreign: 680,794,538 42.2856% - 683,118,901 42.4300% -
Local: 929,196,130 57.7144% - 926,871,767 57.5700% -
** The shares have already been sold by the Government of Bangladesh but no transfer has been made in share register of the Bank.
Evaluation of Paid-Up-Capital (Amount in million Taka)

Cumulative.
Year Particulars Increase
Total
1 2 3 4
1983 Initial Capital 0.50 0.50
1983 Sponsors (56 million Foreign, 11.50 million Bangladeshi, 4 million Govt. of Bangladesh) 71.50 72.00
1985 I.P.O 8.00 80.00
1990 1st Rights/1989 (1R:1) 80.00 160.00
1996 2nd Rights/1996 (1R:1) 160.00 320.00
2001 3rd Rights/2000 (1R:1) 320.00 640.00
2003 4th Rights/2003 (2R:1) 1,280.00 1,920.00
2004 Bonus/2003 (1B:5) – Stock Dividend @20% 384.00 2,304.00
2009 Bonus/2008 (3B:10) – Stock Dividend @30% 1,425.60 6,177.60

Share price status in the Stock Exchanges-2022
Month DSE CSE

Highest rate Lowest rate Average rate Highest rate Lowest rate Average rate
January 33.20 31.90 32.55 34.00 31.70 32.85
February 35.40 32.10 33.75 34.60 31.80 33.20
March 33.00 32.40 32.70 32.70 32.10 32.40
April 33.20 32.30 32.75 33.80 32.10 32.95
May 34.50 31.30 32.90 33.10 31.30 32.20
June 33.40 31.70 32.55 33.00 31.30 32.15
July 33.20 31.90 32.55 33.90 31.60 32.75
August 34.00 32.50 33.25 33.90 32.30 33.10
September 36.00 32.60 34.30 33.50 32.30 32.90
October 33.10 32.60 32.85 33.50 32.30 32.90
November 33.30 32.60 32.95 35.00 32.30 33.65
December 33.10 32.60 32.85 33.20 32.40 32.80
During 2022 36.00 31.30 33.65 35.00 31.30 33.15
Stock Details of Share and Bond

Sl.No. Particulars DSE CSE
1 Share Symbol ISLAMIBANK ISLAMIBANK
2 MPB Symbol IBBLPBOND IBBLPBOND
3 IBBL 2nd PBOND (IBBL 2nd PMB) IBBL 2nd PBOND IBBL 2nd PBOND
4 Share Listing Date 02.07.1985 07.03.1996
5 MPB Listing Date 25.11.2007 25.11.2007
6 IBBL2nd PMB Listing Date 19.12.2021 19.12.2021
7 Market Category ‘A’ ‘A’
8 Electronic Share/MPB/2nd PMB Yes Yes
9 Face Value of Share (Taka) 10 10
10 Face Value of MPB (Taka) 1,000 1,000
11 Face Value of IBBL 2nd PBOND(Taka) 5,000 5,000
12 Total Number of Shareholders 26,388 26,388
13 Highest Price of Share 36.00 (07.09.2022) 35.00(27.11.2022)
14 Lowest Price of Share 31.30 (30.05.2022) 31.30 (30.05.2022)
15 Total Number of MPB holders 11,924 11,924
16 Highest Price of MPB 1,123.50 (28.06.2022) 1,090.00 (19.10.2022)
17 Lowest Price of MPB 985 (02.06.2022) 958.50 (19.06.2022)
18 Total Number of IBBL 2nd PMB holders 451 451
19 Highest Price of IBBL 2nd PMB holders 5,260 (30.06.2022) 5,050 (03.07.2022)
20 Lowest Price of IBBL 2nd PMB holders 4600 (24.04.2022) 4,340 (22.03.2022)

Accessibility of Annual Report
Annual Report 2022 and other information of the Bank may be accessed on Bank’s Website: www.islamibankbd.com. IBBL
provides copies of Annual Report to the Bangladesh Securities and Exchange Commission, Bangladesh Bank, Dhaka Stock
Exchange and Chattogram Stock Exchange for their reference.
Governance on Investors’ Relation

IBBL is strongly committed to ensure equitable treatment for every shareholder. The Company Secretary of IBBL addresses
queries relating to any corporate information and published financial information.
Investors’ Inquiries and Communication

Shareholders and others may contact at any time to share & bond division for any sort of information and query. In order to
make the AGM more participatory, it is arranged in a well-known place at convenient time to enable the shareholders to speak
in the AGM hassle free and provide their valuable suggestions. Any queries relating to shareholders such as transfer of shares,
changes of name and addresses and payment of dividend may be communicated to the following address:
Share & Bond Division

63, Dilkusha Commercial Area, (5th Floor), Dhaka-1000.
HO, PABX: (+88-02) 2223383040, 222338416, Ext.-369
Mobile: 01714-003950, 01787693288, 01844242639
E-mail: share@islamibankbd.com & share&bond@islamibankbd.com
Redress of Investors’ Complaints

In the 39th Annual General Meeting held on 21.06.2022, some shareholders suggested on different aspects of financial,
development and services of the bank. Management of the bank has addressed the issues with due diligence and importance.
Shareholders’ Suggestions and Implementation Status thereof

Sl. Complains/Suggestions Redressal of the Investors’ Complains/ Suggestions
1 Some shareholders requested for declaring Dividend is the key indicator of the financial health of any financial
20% Cash Dividend in the coming year while organization. Shareholders always expect high dividend. It actually
some other shareholders suggested for creating depends on the income volume of the organization. Last year was
a Dividend Equalization Fund so that dividend very challenging for banking industry due to post Covid and Russia-
consistency can be maintained even at the Ukraine War impact. Hence a negative trend was prevailed in
Bank's rainy day. different macro & micro economic factors. However, the Bank has
taken diversified strategy to increase profit. Hopefully bank will be
able to pay a handsome package of dividend.
2 A few shareholders were a bit critical about To control the administrative & other expenses of the Bank, the
increase of administrative & others expenses following measures have been adopted:
compared to previous year and requested to 1. Fare of Bus/Train/Steamer or any transport is claimed at actual
control the same. of the ticket value instead of 1.5 or 2 times of ticket value.
2. Mileage allowance/fuel cost (rented car, scheme car or any
vehicle) are not allowed in any tour,
3. Highly rented transport (Uber/Obhai/Pathao etc.) are avoided in
case of local journey.
4. Usage of papers for printing has been made in both side and soft
copy has been introduced through virtual communication.
5. Newspaper ceiling for the executives are allowed up to 50% of
their ceiling.
6. Personal Mobile bill for the executives are paid at actual of
usages subject to providing service providers bill within their
ceiling.

7. Prior approval for Holiday/Friday duty is required to be
obtained from competent authority and minimum manpower to
be utilised for Saturday duty where applicable in essential.
8. The day to day works to be completely accomplished within

the office time table so that excessive running of the air coolers,
fans, computers, printers, lights etc. is controlled.
9. Overtime of Pool drivers are supervised by CSD, HO and

MCG’s overtime are supervised by respective Divisions, Zonal
Offices and Branches to keep overtime expenses at minimum
level considering need based criteria only.
10. Normally, MCGs/Sub-staff are not engaged to render overtime

duties.
11. In case of exigency, only 01 (one) MCG are engaged in a

working station to render overtime duties for a very limited
time
12. Habit of late sitting is stopped to avoid unnecessary overhead

expenditure.
13. Purchasing of new/replacement of vehicles under pool transport

have been stopped.
14. In case of emergency and necessary purposes, Entertainment,

Travelling, Computer & accessories, Electrical equipments,
Furniture & fixture and other stationery items have been
expensed upto the 50% of the budget.
15. Zones/Branches and Head Office are instructed to reduce the

client visit frequency along with minimum manpower.
16. Manpower and duration of Audit has been reduced for

conduction of Internal Audit.
17. Zonal Heads are instructed to take a single official for

accompanying with them during their routine inspection of the
branches under their control and also to conduct visit more than
one branches in a single day in possible cases with due care.
18. Usage of bank’s pool transport has been controlled at minimum

level as per requirement.
19. Conference/Get-together/Training/Meeting etc. are being held

through online platform to a significant extent.
20. Letters/Circulars/Instruction Circulars/Memos etc. are being

dispatched through E-mail in lieu of courier/postal service to
reduce the consumption of paper/stationery items.
21. The frequency of physical visit to the out station is being

minimized by way of conducting the same through virtual
platform, if possible, to bring down TA/DA bill.

Graphical Presentation
Earnings Per Share (EPS) Net Assets Value (NAV) Per
(In Taka) Share (In Taka)
42.33
40.10
38.27
36.43
3.77
3.67
34.10
3.31
2.81
2.88
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Market Capitalization (Million Taka)

Shareholders’ Fund/Equity (Month end closing price of DSE in 2022)
(Million Taka) 53500
53000
52500
68,148
64,561
61,613
58,652
54,896
52000
51500
51000
May
Aug
Sep
Nov
Dec
Feb
Mar
Jan
Jun
Oct
Apr
Jul
2018 2019 2020 2021 2022
Return on Equity (ROE)

Net Profit after Tax
(Million Taka)
11.07%
9.08%
8.67%
6,075
7.38%
7.19%
5,908
5,328
4,639
4,521
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

Deposit & Investment Import, Export & Remittance
(Million Taka) (Million Taka)
15,51,820
13,81,980
14,12,855
12,85,992
11,79,691
11,09,395
9,46,217
9,53151
8,22,573
8,87,371
7,54,045
6,45,292
5,05,175
4,86,274
4,46,969
4,19,046
3,99,816
3,99,884
3,69,637
3,05,514
3,01,782
2,51,592
2,75,212
2,34,443
2,24,970
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Deposit Export Remittance Import
Total Assets Total Equity (Regulatory)

18,38,371
16,35,993
1,02,760
98,189
14,16,829
87,253
11,41,493
79,080
9,97,430
69,619
2018 2019 2020 2021 2022

2018 2019 2020 2021 2022
Return on Assets (ROA)

0.64%
Gross Profit Ration (%)

0.50%
51%
0360%
0.35%
0.30%
49% 49% 49%
47%
2018 2019 2020 2021 2022

2018 2019 2020 2021 2022

Total Oprrating Income Total Provision

59,881
62,529 53,272
43,190 43,327 48,119
39,597 30,706 43,598
36,162
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Total Operating Expenses Investment Income Excluding Share &

(Million Taka) Securities Income (Million Taka)
31,282
26,772
24,908
21,276
19,357
87,984
74,305
73,410
75,749
67,166
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Non-Investment & Share &Securities Non- Performing Investment (%)

Income(Million Taka)
18,622
4.12%
3.82% 3.70%
14,847 3.41% 3.31%
12,382
10,430 10,188
2018 2019 2020 2021 2022

2018 2019 2020 2021 2022

Segment Information
Operating Result Group Performance
Total Income Total Operating
5,908
Income
13, 5,908
687
13,687
Total Expense Total Operating
49,898 Expense
1,06,375
86,633
31,282 Net Profit before

Net Profit
Tax
beforeTax
Net Profit after

Net Profit Tax
afterTax
Sector wise Investment
1%
Foreing Exchange Busines
2%
1% Industrial
2%
3%
Trade &
Import
6%
Commerce
28% Real Estate
Consumer
48%
Export 53%
32%
Agricultural
24% Transport
Remittance Construction
Others
Division Wise (Investment)

Area wise Investment
1%
1%
Dhaka
1%
3%
Chattogram
12%
Rural Area Khulna
Rajshahi
6%
47%
94.35%
Urban Area
5.65%
Barisal
Sylhet
29%
Rangpur
Maymensingh

Horizontal & Vertical Analysis
Operating Performance (Horizontal)
2018
2019
2020
2021
2022
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2022 2021 2020 2019 2018
Total Revenue 106,606 88,257 84,493 88,131 77,596
Operating Profit 21,247 16,554 14,789 21,914 20,240
Profit Before Tax 14,593 11,441 10,689 14,100 13,701
Profit after Taxes 5,923 4,639 4,521 5,328 6,075
EPS 3.68 2.88 2.81 3.31 3.77
Operating Performance (Vertical)
2022 2021 2020 2019 2018

EPS 3.68 2.88 2.81 3.31 3.77
Profit after Taxes 5,923 4,639 4,521 5,328 6,075
Profit Before Tax 14,593 11,441 10,689 14,100 13,701
Operating Profit 21,247 16,554 14,789 21,914 20,240
Total Revenue 106,606 88,257 84,493 88,131 77,596

Horizontal & Vertical Analysis
Statement of Financial Position (Horizontal)
Long Term Liabilities
Current Liabilities
Shareholders Fund
Current Assets
Long Term Assets
Property Plant & Equipment
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Property Plant Long Term Current Assets Shareholders Current Long Term
& Equipment Assets Fund Liabilities Liabilities
2022 18,437 524,680 1,294,963 68,162 1,181,750 588,168
2021 18,378 565,927 1,051,688 64,561 1,001,706 569,726
2020 17,810 472,126 926,893 61,613 855,671 499,545
2019 16,187 415,153 710,153 58,652 656,086 426,755
2018 15,346 365,375 616,709 54,896 568,212 374,321
100%
90%
80%
70%
Statement of Financial Position
60%
50%
40%
30%
(Vertical)
20%
10%
0%
Property
Long Term Current Shareholders Current Long Term
Plant & Assets Assets Fund Liabilities Liabilities
Equipment
2018 15,346 365,375 616,709 54,896 568,212 374,321
2019 16,187 415,153 710,153 58,652 656,086 426,755
2020 17,810 472,126 926,893 61,613 855,671 499,545
2021 18,378 565,927 1,051,688 64,561 1,001,706 569,726
2022 18,437 524,680 1,294,963 68,162 1,181,750 588,168

Profitability, Dividend, Performance and Liquidity Ratios
Net Profit Before Tax Dividend Paid

(Million Taka)
14,100 Cash Stock
13,687
13,701
10% 10% 10% 10% 10%

11,441
10,689
2018 2019 2020 2021 2022

2018 2019 2020 2021 2022
Investment Deposit Ratio (IDR) Price Earnings Ratio (Times)

90.80%
89.30%
91.64%
11.62
9.54
8.70
80.42%
79.74%
6.42
5.77
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Cost to Income Ratio Capital Adequacy Ratio

(Taka) (CAR)
13.55%
12.54%
0.81
0.82
0.88
12.95%
13.54%
0.75
11.97%
0.74
2018 2019 2020 2021 2022

2018 2019 2020 2021 2022

Statement of Value Added

2022 2021
Particulars
Amount Amount
Income from Banking Service 106,368 88,257
Less: Cost of Services 63,338 51,976
Value added by Banking Service 43,030 36,281
Non-Banking Income
Provision for Investment & Off-Balance Sheet exposures 6,365 5,073
Total Value Added 36,665 31,208
Distribution of Value Addition Amount % Amount %

To government (income tax) 8,669 24% 6,802 22%
To providers of capital (dividend- cash/stock) 1,610 5% 1,610 5%
To employees (salaries, allowances and other benefits 2,0271 55% 17,316 55%
Zakat 971 3% 895 3%
Retained Profit 3,562 10% 2,949 10%
Depreciation 1,681 5% 1,634 5%
Deferred taxation (99) (2%) 2 0%
Total 36,665 100% 31,208 100%
Distribution of Value Addition 2022 Distribution of Value Addition 2021
3% Salary & Allowances Salary & Allowances

(2%)
3%
5%
10 Income Tax Paid to 10 Income Tax Paid to
% Government % Government
5% 5%
Dividend Dividend
Retained Profit Retained Profit
24% 55% 22% 55%
Deprec iation Deprec iation
Zakat Zakat

Integrated Reporting
Particulars 2022 2021

Financial Inclusion
Total Customers 18,383,517 15,477,340
Rural Investment extended through Rural Development Scheme (RDS) (Million Taka) 55,881 45,823
Number of RDS members 1,600,056 1,469,362
Villages of the country covering through RDS 30,961 28,921
Farmers Account (Nos.) 558,852 527,917
Percentage of Rural Branch 34.52% 34.11%
Deposit per Account (Million Taka) 0.08 0.10
Investment per Account (Million Taka) 1.49 1.29
SME exposure of IBBL to Total Investment Portfolio 25% 23.18%
Spread 2.28 3.23
Promoting Sustainable finance (In million Taka)
Amount financed for installation of ETP to plants in operations 512.33 412.00
Amount financed in plants having ETP 661.47 759.71
Amount financed to solar panel/renewable energy plants 5447.49 2,869.85
Amount financed to Bio-fertilizer plants 0 0
Amount financed to brick kilns adopted cleaner technology 166.65 162.71
Amount financed to other green projects 159,949.17 83,293.99
Total Sustainable Finance 166,737.11 87,498.26
Employer of Choice
Total Employee 20,792 19,193
Percentage of voluntary attrition 2.44% 0.76%
Total number of training 538 551
Number of fresh employee recruited 2,112 761
Number of customers eligible for Environmental Due Diligence 50,758 37,997
Number of customers appraised for Environmental Risk Rating 50,758 37,997
Low 38,569 30,348
Moderate 12,189 7,649
High 0 0
Cost of water consumed by the bank 28.93 56.14
Cost of Paper consumed by the bank 55.65 113.32
Cost of energy (electricity, fuel and gas) consumed by the bank 400.42 324.85
Percentage of bank branches connected online 100 100
No. of staff received training on Green Banking 3,440 2994
Distribution of Tree Saplings (Number) 142,365 117,407
Corporate Social Responsibility
Expenditure for CSR (Million Taka) 3,273.69 1,555.14
No. of Beneficiaries 632,674 284,665
Contribution to the National Exchequer 18,636.60 18,457.59

Economic Value Added Statement
Shareholders’ equity 68,162 64,561
Add: Accumulated provision for investment (including Off B/S) 59,881 53,272
Total Invested Fund 128,043 117,833
Average Shareholders’ Equity 66,362 63,087
Earnings
Profit After Tax 5,923 4,639
Add: Provisions 6,365 5,073
Less: Written-off during the year - -
Earnings for the year 12,288 9,712
Economic Value Added (EVA) 12,288 9,712
Market Value Added Statement

Value per Share Amount
Particulars Number of Shares
(Taka) (In million Taka)
Market Value 1,609,990,668 33.10 53,291
Book Value 1,609,990,668 42.34 68167
Market Value Added (14,876)
Market Share Information

Sl. No. Particulars Market Share of IBBL in the Banking Sector (%)
2022 2021
1 2 3 4
1 Deposit 9.90% 9.81%
2 General Investment 11.37% 9.38%
3 Import 10.00% 11.40%
4 Export 7.41% 8.03%
5 Remittance 22.92% 26.90%

Financial Calendar-2022
Items Date
Dividend for 2021 paid June 26, 2022
Financial Statements for the year 2022 signed April 27, 2023
40th Annual General Meeting to be held June 22, 2023
Dividend for 2022 proposed to be paid June 27, 2023
Interim Financial Statements
1st quarter ended March 31, 2022 (unaudited) approved by the Board of Directors April 26, 2022
2nd quarter/Half Yearly ended June 30, 2022 (unaudited) approved by the Board of Directors July 20, 2022
3rd quarter ended September 30, 2022 (unaudited) approved by the Board of Directors October 30, 2022
4th quarter/Year ended December 31, 2022 (audited) approved by the Board of Directors April 27, 2023
Financial Calendar-2023 (Proposed)

Items Date
Financial Statements for the year 2023 will be finalized and signed February 22, 2024
41st Annual General Meeting will be held March 28, 2024
Dividend for 2023 proposed to be paid April 01, 2024
Interim Financial Statements
1st quarter ended March 31, 2023 (unaudited) will be approved by the Board of Directors April 27, 2023
2nd quarter/Half Yearly ended June 30, 2023 (unaudited) will be approved by the Board of Directors July 24, 2023
3rd quarter ended September 30, 2023 (unaudited) will be approved by the Board of Directors October 22, 2023
4th quarter/Year ended December 31,2023 (audited) will be approved by the Board of Directors February 22, 2024

Financial Highlights
Amount in million Taka
Sl.
No.
1 Paid-up capital 16,099.91 16,099.91
2 Total capital (equity) 102,738.44 98,189.08
3 Capital surplus/ (deficit) 318.84 7,517.83
4 Total assets (Excluding contra) 1,838,080.21 1,635,992.80
5 Total deposits 1,410,445.43 1,381,979.53
6 Total investments (excluding Investment in shares/ securities) 1,461,365.50 1,191,173.00
7 Total contingent liabilities and commitments 268,015.46 264,845.62
8 Investment deposit ratio 91.64% 79.74%
9 Percentage of classified investment against total general investments 3.70% 3.31%
10 Profit after tax & Provision 5,923.45 4,639.20
11 Amount of classified investment during current year 14,634.90 4,128.01
12 Provision kept against classified investments 42,073.98 37,230.28
13 Provision surplus/ (deficit) 0.50 0.51
14 Cost of fund 6.55% 6.17%
15 Profit earning assets 1,423,908.05 1,144,779.62
16 Non-profit earning assets 414,172.16 491,216.18
17 Return on investments (annual) 6.39% 6.32%
18 Return on assets 0.34% 0.30%
19 Income from investments 90,685.73 75,714.88
20 Earnings per share (Taka) 3.68 2.88
21 Net income per share (Taka) 3.68 2.88
22 Price earnings ratio (Times) 8.70 11.11
23 Net Asset Value (NAV) 68,162.15 64,561.29
24 Net Asset Value (NAV) per share (Taka) 42.34 40.10
25 Net Operating Cash Flow per share (NOCFPS) (Taka) (55.69) 41.42
26 Dividend Yield per share 3.03% 3.13%
27 Dividend pay out ratio per share 27.18% 34.70%
28 Dividend cover Ratio (Times) 3.68 2.88

Five Years Performance
Amount in million Taka
Sl.
Particulars 2022 2021 2020 2019 2018
No.
Balance Sheet Matrix
1 Authorized Capital 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
2 Paid up Capital 16,099.91 16,099.91 16,099.91 16,099.91 16,099.91
3 Share Premium 1.99 1.99 1.99 1.99 1.99
4 Reserve Fund 50,452.26 46,851.40 43,902.99 40,941.78 37,186.41
5 Retained Earnings 1,609.99 1,609.99 1,609.99 1,609.99 1,609.99
6 Shareholders’ Equity 68,162.15 64,561.29 61,612.88 58,651.67 54,896.30
7 Total Deposit 14,10,445.43 1,381,979.53 1,179,476.48 946,291.53 822,573.12
8 Total Investment 1,551,820.16 1,285,992.40 1,109,395.31 953,150.85 847,370.71
9 General Investment 1,461,365.50 1,191,173.00 1,035,287.88 899,013.21 805,760.06
10 Investment Deposit Ratio 91.64% 79.74% 80.42% 89.39% 90.80%
11 Total Assets (including Contra) 2,106,095.67 1,900,838.42 1,624,916.66 1,316,169.23 1,170,422.26
12 Total Assets (excluding Contra) 1,838,080.21 1,635,992.80 1,416,828.50 1,141,492.97 997,429.60
13 Fixed Assets 18,437.32 18,378.45 17,809.90 16,186.68 15,346.42
Capital Measure Matrix
14 Total Risk Weighted Assets (RWA) 819,356.86 725,369.92 644,139.50 610,712.38 581,444.97
15 Core Capital- Tier- I 6,9731.86 65,304.82 55,181.93 52,221.30 48,523.68
16 Supplementary Capital (Tier- II) 33,006.58 32,884.25 32,070.80 26,858.40 21,094.90
17 Regulatory Capital (Tier I, II & III) 102,738.44 98,189.08 87,252.72 79,079.70 69,618.58
18 Statutory Capital (Paid up Capital 37,835.38 36,835.38 3,5835.37 34,835.38 33,835.37
& Statutory Reserve)
19 318.84 7,517.83 6,740.89 2,740.65 571.99
20 Capital Adequacy Ratio 12.54% 13.54% 13.55% 12.95% 11.97%
Assets Quality Matrix
21 54,022.01 39,387.11 35,259.10 34,384.54 33,169.29
22 3.70% 3.31% 3.41% 3.82% 4.12%
23 24,235.89 24,902.75 23,572.03 23,994.33 17,441.34
Investment (Objective Criteria)
24 17,838.09 12,327.52 12,725.89 10,744.99 10,805.49
25 General Provision against Unclassi- 15,670.55 13,857.63 10,251.06 7,372.13 6,516.05
26 General Provision on Off Balance 2,136.03 2,184.05 1,567.09 1,486.28 1,420.80

Sheet Items
Operating Performance Matrix
27 Investment Income 87,984.26 73,410.09 74,305.33 75,748.84 67,166.19
28 54,077.05 44,930.23 44,787.01 44,941.33 37,999.26
29 Net Investment Income 33,907.21 28,479.86 29,518.33 30,807.51 29,166.93
30 Non-Investment Income 18,621.91 14,846.92 10,180.05 12,382.28 10,429.90
31 Total Income 106,606.17 88,257.01 84,493.38 88,131.12 77,596.09
32 Administrative & other Exp. 31,281.71 26,772.37 24,908.16 21,276.17 19,357.25
33 Total Expenditure Excluding Provision 85,358.76 71,702.60 69,695.17 66,217.50 57,356.51
34 Provision for Investment, Off 6,,654.49 5,113.12 4,109.13 7,813.86 6,538.53
Balance Sheet Items & Other Assets
35 Total Expenditure Including Provision 92,013.25 76,815.72 73,804.30 74,031.36 63,895.04

Sl.
Particulars 2022 2021 2020 2019 2018
No.
36 Net Profit before Tax 14,592.92 11,441.28 10,689.09 14,099.75 13,701.05
37 Net Profit after Tax 5,923.45 4,639.20 4,521.01 5,328.39 6,075.14
38 Provision for Income Tax 8,669.48 6,802.08 6,168.08 8,771.36 7,625.90
Foreign Business Matrix
39 Import 754,045.00 645,295.00 41,9046.00 399,884.00 399,816.00
40 Export 369,637.00 301,782.00 22,4970.00 234,443.00 251,592.00
41 Remittance 446,969.00 505,175.00 48,6274.00 305,514.00 275,212.00
42 Total Foreign Exchange Business 1,570,651.00 1,452,252.00 1,130,290.00 939,841.00 926,620.00
Network Distribution
43 Number of Nostro Accounts 53 51 50 45 47
44 Correspondent Banks 594 633 610 595 619
45 Agency Arrangement 157 151 147 139 133
46 Shareholder 26,388 30,126 33,869 38,371 40,819
47 Employee 20,792 19,193 18,621 16,807 14,698
48 Branch 394 384 373 357 342
48 Sub Branch 228 219
49 Sheba Ghar 47 47 47 47 45
50 Agent Banking Outlet 2,694 2,676 2,273 1,012 305
51 No. of ATM& CRM 2,856 2,318 1,752 661 629
52 No. of IDM 126 126 126 126 126
Shareholders' Information
53 Cash Dividend 10% 10% 10% 10% 10%
54 Stock Dividend - - - - -
55 Net Assets Value (NAV) per Share (Taka) 42.34 40.10 38.27 36.43 34.10
56 Net Operating Cash Flow per (55.69) 41.42 82.40 28.82 3.31
share (NOCFPS) (Tk.)
57 Earning per Share (Taka) 3.68 2.88 2.81 3.31 3.77
58 Market Value per Share (Taka) (Highest) 33.10 34.00 28.90 28.40 37.50
Efficiency Ratio
59 Gross Profit Ratio 49% 49% 47% 49% 51%
60 Cost of Fund 6.55% 6.17% 7.03% 8.31% 8.02%
61 Cost Income Ratio/Efficiency Ratio 0.88 0.81 0.82 0.75 0.74
62 Return on Equity (ROE) 8.93% 7.19% 7.38% 9.39% 11.07%
63 Return on Average Assets (ROA) 0.34% 0.30% 0.35% 0.50% 0.64%
64 Price Earning Ratio (Times) 8.70 11.11 7.01 7.05 10.23
65 Spread 2.28% 3.23% 2.63% 2.93% 3.80%
66 Cash Reserve Requirement (CRR) 5.77% 16.48% 17.05% 6.17% 6.19%
67 Statutory Liquidity Ratio (SLR) 6.62% 19.84% 19.86% 6.88% 7.01%
68 Liquidity Coverage Ratio (LCR) 82.90% 311.57% 253.79% 327.62% 169.05%
69 Net Stable Funding Ratio (NSFR) 105.02% 107.51% 105.75% 105.59% 110.09%
70 Non Investment Income to Total Income 14.93% 14.21% 9.70% 14.05% 13.44%
Credit Rating Status
71 Long Term AAA AAA AAA AAA AA+
72 Short Term ST-1 ST-1 ST-1 ST-1 ST-1

Report of the Shariàh Supervisory Committee 2022
During the year 2022, the Shariàh Supervisory Committee of Islami Bank Bangladesh Limited met 15 meetings and reviewed operational
activities of the Bank including those referred to it by the Board of Directors and the Management of the Bank and gave decisions and
opinions related to Shariàh. For increasing awareness among the employees of the Bank for Shariàh compliance in banking operations,
the Honorable Members of the Shari’ah Supervisory Committee attended 16 (Sixteen) Shariàh Awareness Programs held at Head Office,
different Zones and Corporate branches of the Bank as main discussant in presence of the Honorable Members of the Board of Directors
and top executives of the Bank. Apart from these, under the supervision of the Shariàh Supervisory Committee, the Muraqibs of Shariàh
Secretariat conducted Shari’ah Off-site/Onsite inspection at all (384) branches of the Bank excluding 10 (Ten) new branches opened in 2022,
55 Sub-branches, 125 agent outlets, different divisions of Head Office and zone office during the period and submitted detailed report thereon.
The responsibility of the Shariàh Supervisory Committee is to form independent opinion and to provide necessary guidelines upon
observation and review of the activities of the Bank. On the other hand, the responsibility of the Management is to ensure that the Bank
conducts its business in accordance with the rules and principles of Islamic Shari’ah and the opinions and decisions given by the Shariàh
Supervisory Committee.
After reviewing the Shariàh Inspection Reports and Audited Financial Statements like Balance Sheet, Profit & Loss Account of the Bank for
the year 2022, the Shari’ah Supervisory Committee confer the following openions and advices:
Opinions:
1. The agreements, contracts and transactions executed by Islami Bank Bangladesh Limited during the year have been made in accordance
with the principles of Islamic Shariàh.
2. Profit distributed to Mudaraba deposit accounts has been made in accordance with the terms and conditions stipulated in the contracts as
per principles of Islamic Shariàh.
3. The income identified by the Shariàh Supervisory Committee as impermissible and doubtful from the view point of Islamic Shariàh
has not been included in the distributable income of the Bank.
4. The calculation of Zakat on the Zakatable assets of the Bank has been made in compliance with the rules and the principles of Islamic
Shariàh. It is pertinent to state that IBBL does not pay Zakat on behalf of the Depositors and Shareholders. It is the own responsibility of
the Depositors and Shareholders to pay Zakat on their deposits and shares respectively.
Advices:
1. It is imperative to continue Shariàh training and Awareness Programs at Head Office, zones office, branches, sub-branches & agent
outlets with a view to increasing awareness on Shariàh compliance among all levels of the employees and clients.
2. To flourish the core beauty of Islamic banking, investment in Mudaraba and Musharaka modes needs to be increased.
3. In order to make the poor people of the country prosperous and self-reliant, it is essential to expand the activities of small investment in
the newly opened Branches, Sub-Branches and Agent Outlets.
4. It is necessary to increase supervision to ensure Shari’ah compliance in agent banking outlets representing the Bank root level.
5. It is necessary to expand the Bank’s Rural Development Scheme (RDS) and ensure Shari’ah compliance therein.
6. More effective steps need to be taken to improve the quality of customer service at all levels of the Bank.
May Allah (SWT) bestow us with the best of Tawfique in gaining His satisfaction through implementing Shari’ah in every sphere of our life.
Ameen.
Professor Dr. Mohammad Abdus Samad Professor Dr. Mohammad Gias Uddin Talukdar
Member Secretary Chairman

Audit Committee Report
Audit Committee Report 2022
In compliance with the Bank Company Act 1991 (amended up to 2013), Bangladesh Bank Guidelines on Internal Control &
Compliance in Banks (2016), BRPD Circular No. 11 dated 27 October 2013 and Bangladesh Securities & Exchange Commis-
sion Notification, the formal Audit Committee of IBBL has been functioning duly appointed by the Bank’s Board of Directors.
The Audit Committee was formed to assist the Board for ensuring the achievement of the objectives of the Bank, strategies and
overall business plans set by the Board complying Bank’s ICC policies vis-a-vis guidelines of the Central Bank. In fulfilling
the Board’s oversight responsibilities approach to manage risks, the Audit process, findings of Central Bank comprehensive
inspection, monitoring the efficiency of operations, compliance with laws and regulations and its own code of business conduct
and compliance with the internal policies to make the Bank a compliant, strong and dependable organization for all stakehold-
ers. In this context the Audit Committee comprising of 05 (five) members has been appointed by the Board of Directors of the
Bank. Pursuant to the instructions of the Bangladesh Securities and Exchange Commission (BSEC) and the Bangladesh Bank,
01 (one) Independent Director has been included in the Committee. In compliance to Bangladesh Bank Circular, no member of
the Executive Committee has been included in the Audit Committee.
Composition of the Audit Committee:

No. of No. of
Status in Status in the No. of
Sl. meetings meetings
Name the Board of Audit Tenure meetings
No. eligible to attended in
Directors Committee held in 2022
attend in 2022 2022
1 Mr. Mohammad Independent Chairman From 18.06.2019 07 07 07
Solaiman, FCA Director to till date
2 Mr. Mohammed Director Member From 08.06.2017 07 07 07
Shahabuddin to till date
3 Mr. Khurshid-Ul- Director Member From 17.06.2019 07 07 07
Alam to till date
4 Mr. Mohammed Nasir Director Member From 14.07.2019 07 07 07
Uddin FCMA to till date
5 Professor Md. Kamal Independent Member From 15.01.2017 07 07 07
Uddin Ph. D Director to till date
Note:
Janab J Q M Habibullah, FCS, Company Secretary of IBBL acts as the Secretary of the Audit Committee.
Meeting of the Audit Committee

During the year 2022, the Audit Committee conducted 07 (seven) meetings and disposed 137 Memos on different issues.
Proceedings of the meetings were reported timely & regularly to the Board of Directors as well as Bangladesh Bank complying
the Bangladesh Bank DOS Circular Letter no.07 dated 24.04.2011.
Roles and Responsibilities of the Audit Committee
The roles & responsibilities of the Committee have been defined in line with the relevant provision of Corporate Governance
guidelines/notifications issued by BB & BSEC, two paramount regulators for the Bank. Some important rules and responsibilities
are highlighted as below:
Internal Control:
 Evaluate whether management has set an appropriate compliance culture by communicating the importance of internal
control and the management of risk ensuring that all employees have clear understanding of their roles and responsibilities;
 Review management actions in digitalization of the bank and its applications thereof and Management Information System
(MIS) of the bank;
 Consider whether internal control strategies recommended by internal and external auditors have been implemented by
the management;
 Consider reports relating to fraud, forgery, deficiencies in internal control or other similar issues detected by internal and
external auditors and inspectors of the regulatory authority and place it before the Board of Director’s after reviewing
whether necessary corrective measures have been taken by the management; &

 With governance & guidance from the Board of Directors, the Audit Committee is to put in place policies and procedures
to identify, measure, monitor and control risks.
Financial Reporting:
 Audit committee checks whether the financial statements reflect the complete and concrete information and determine
whether the statements are prepared according to existing rules & regulations and standards enforced in the country and as
per relevant prescribed accounting standards set by Bangladesh Bank;
 Discuss with management and the external auditors to review the financial statements before its finalization; & Review the
quarterly & half yearly financial statements with the Management before submission to the Board of Director’s for approval.
Internal Audit:
 Audit committee ensures whether internal audit is working independently beyond control of the management;
 Review the activities and the organizational structure of the internal audit and ensure that no unjustified restriction or
limitation hinders the internal audit process;
 Examine the efficiency and effectiveness of internal audit function; & Examine whether the findings and recommendations
made by the internal auditors are duly considered by the management or not.
External Audit:
 Review the performance of the external auditors and their audit reports;
 Examine whether the findings and recommendations made by the external auditors are duly considered by the management
or not; &
 Make recommendations to the Board of Director’s meeting regarding the appointment of the external auditors.
 Compliance with existing laws and Regulations
 Review whether the laws and regulations framed by the regulatory authorities (Central bank and other bodies) and internal
regulations approved by the board are being complied with.
Other Responsibilities
 Submit compliance report to the Board of Director’s on quarterly basis on regularization of the omission, fraud and
forgeries and other irregularities detected by the internal and external auditors and inspectors of regulatory authorities; &
 Perform other oversight functions as desired by the Board of Directors and evaluate the committee’s own performance
on a regular basis.
Statement of the Audit Committee
The Audit Committee during its regular review meeting observed that the internal controls of the Bank are functioning
satisfactorily. During its regular review of the external audit functions, the committee also observed that effective co-ordination
of external audit function, independence of external auditors were ensured and the external auditors’ findings were reviewed in
order to satisfy that appropriate actions have been taken.
Key Activities in 2022
 During the year, 2022 the Committee performed, amongst others, the following key functions, where applicable, to the
extent it was brought before the committee:
 Discussed the internal and external audit reports with advice to conduct quality & effective audit and advised the management
to rectify all lapses/irregularities revealed in the reports. Additionally, the concerned Head of Wings/Divisions/Branches
and other Officers of the Bank were invited from time to time to attend the meeting of the Audit Committee in order to
augment the process of regularization of lapses and irregularities;
 Discussed the Bangladesh Bank inspection reports on the Branches and Head Office and advised the management to
rectify all lapses/irregularities and to comply with Bangladesh Bank’s circulars & instruction circulars meticulously;
 Assessed reports relating to fraud, forgery, deficiencies or other similar issues in internal control detected by internal and
external auditors and inspectors of the regulatory authority and placed it before the Board of Director after reviewing
whether necessary corrective measures have been taken by the management;
 Reviewed the Self-Assessment of Anti Fraud Internal Control on half yearly basis for onward submission to Bangladesh
Bank in compliance with DOS Circular Letter No. 10 dated 09.05.2017;
 Approved the Audit (Risk Based, Internal, RDS/UPDS, IS, Concurrent, Foreign Exchange cell & Internal Review of
Investment) Calendar for the year 2022 and advised the management to carry out the audit program meticulously;

 Reviewed the activities of the internal audit and the been incorporated in preparing those Financial Statements
organizational structure and ensuring that no unjustified and in other interim reports.
restriction or limitation hinders the internal audit process
and examined the efficiency and effectiveness of internal
Review of Financial Statements of 2022
audit functions; The Audit Committee, reviewed and examined the Annual
Financial Statements of the Bank to confirm whether all the
 Examined whether the findings and recommendations
required disclosures and information have been incorporated
made by the internal auditors & external auditors are duly
considered by the management or not; in the Financial Statements and whether the Bank followed
International Accounting Standards (IAS) and International
 Reviewed the financial statements to ensure that the Financial Reporting Standards (IFRS), Bank Company Act
same are in full compliance with the Acts, Rules and the 1991(as amended up to 2013), Bangladesh Bank Guidelines,
Accounting Standards (IAS/IFRS); Companies Act 1994, the Bangladesh Securities and Exchange
Commission Rules 1987 and other laws and rules applicable
 Analyzed the financial involvement against the
in Bangladesh. The Committee also examined whether the
objections/observations raised in the internal, external
audit & Bangladesh Bank Inspection reports. Standards issued by the Accounting and Auditing Organization
for Islamic Financial Institutions (AAOIFI), Bahrain have
 Advised the management to complete all the been followed in formulation of Financial Statements of
documentation formalities carefully and retain each and Bank. The Committee recommended the Financial Statements
every document properly; of 2022 for consideration of the Board of Directors.
 Analyzed the deposit trend of the bank and advised Meeting with the Statutory Auditors
the management to exert best effort for mobilizing the The Committee met with the Statutory Auditors for finalization
deposit in order to support the business growth of the of financial statements. It properly addressed the issues
bank; mentioned in the Management Letter for taking appropriate
 Reviewed the reports on overdue, classified, rescheduled action by the Management.
& written off investment and other non-performing assets
and advised the Management to increase the recovery Acknowledgment
there of & to take proper steps so that no new investment The Committee expressed its profound thanks and gratitude
become classified; to the Members of the Board, Management, Auditors and the
 Advised the management to ensure full Shariah Regulatory Authorities, in particular, Bangladesh Bank, the
compliance in all areas of business; observer of Bangladesh Bank and the Bangladesh Securities
 Reviewed whether the laws and regulations framed by the and Exchange Commission for their excellent support while
regulatory authorities (Central Bank and other regulatory performing its coveted duties and responsibilities.
bodies) and internal regulations approved by the Board
of Directors are being complied with;
 Evaluated the status of large investment clients on regular
basis;
 Evaluated the certificate on the effectiveness of Internal
Control Policy, Practice & Procedures of the bank;
 Appraised the implementation status of Circulars/Circular
Letters issued by Regulatory bodies (Bangladesh Bank &
others); Mr. Mohammad Solaiman, FCA
 Reviewed the Annual Heath Report of the Bank for the Chairman
year 2021; Audit Committee
 Assessed the Quarterly Operations Report (QOR) of all
Branches on quarterly basis;
 Appraised the Nostro Account Reconciliation position.
Statutory Auditors’ Appointment
The Audit Committee recommended to the Board of Directors
for appointing Statutory Auditors in the Annual General
Meeting for the year 2022.
Interim Financial Reports of 2022
The Audit Committee reviewed and recommended the
quarterly & half yearly Financial Statements to the Board and
ensured that authentic and reliable Financial Information have

Effective Brand Communication
towards universal banking
Brand & Communication Division (B&CD) of Islami Bank advertisements include price sensitive information, Tender
Bangladesh Limited has been functioning to increase its brand Notice, Auction Notice, branch shifting and other issues.
image through positive coverage in various forms of media, IBBL displays multi theme animated advertisements in some
advertisements, branding and participating different national 40 prominent online news-portals. Bangla Tribune, a lead-
and international events. IBBL’s social media platforms are ing news-portal published a series of positive interpretative
playing significant role in connecting the people to the bank. reports on Islamic banking specially highlighting IBBL in
IBBL enjoys highest media coverage and leading position in 2022. Besides the above media, the bank availed publicity by
the social media, online, electronic & press publicity in finan- publishing 317 advertisements in popular news magazines,
cial sector. journals, corporate periodicals and souvenir by various public
organizations.
Publicity through media
B&CD utilizes all available tools and channels to prevent ad-
IBBL gets huge publicity exposure through publishing its verse reports in media. The Bank maintains friendly relations
press releases, interviews, features and success stories in mass and proper social communication with the media houses with
media incurring no expenditure. PR Value of IBBL for the anniversary greetings, festival gifts and personal interaction.
year 2022 has been Tk. 520 crore reported by renowned PR However, in case of any negative report published, B&CD
agency Ryans Archives. 159 press releases on various events issues rejoinder with proper explanation and communication
of the Bank were publicized in the year which appeared in 724 so as to de-rationalize further follow ups.
TV reports, 6,020 daily newspaper reports and 4,740 online
news-portals reports with an average of 72 appearances per Website & digital platforms:
item in the media. An interactive and state-of-the-art new website of IBBL has
been developed which is likely to be launched in early 2023.
PR Value of IBBL The Bank runs a Youtube channel and maintains vibrant
official pages in Facebook and other social media platforms
including Linkedin, Twitter & Instagram. We are gaining
6000
5200 huge engagement through these platforms which are con-
5000 necting clients to the banks products and services.
million Taka
4197
4000 All publicity contents of the bank are uploaded in these plat-
3000 2533
forms regularly. In 2022, we have uploaded 1600 contents in
the Facebook page, 641 contents in Linkedin and 581 tweets
2000 1330
1577 in Twitter. IBBL Youtube Channel has about 11 lac view and
17,100 hour watch time and 15.4 thousand subscribers and
1000
2.7 million impression. We have 49 thousand followers in
0 Linkedin Account. IBBL Instagram Account reach is 1.00 lac.
2018 2019 2020 2021 2022
Branding content & materials:

The bank maintains commercial relations currently with 24
eminent TV channels of the country. The dealings include To uphold the brand image and create a positive perception
telecasting TV commercials, branding news particularly of its products and services, IBBL utilizes all branding tools
headlines and economic news, sponsoring talk-shows, Islam- and techniques representing consistent theme and designs. A
ic and Ramadan programs etc. 6 new TV advertisements on number of eye-catching, meaningful TV, press & online ad-
Cellfin and other services were heavily publicized in 2022. vertisements were developed with reputed design houses on
Top executives from the Bank were interviewed on economic different occasions. Matters like banner, CG, static post were
issues and they regularly participated in TV talk-shows. displayed in branches & social media platforms on various
occasions including the bank’s stepping into 40th year on 30
In 2022, 16 interviews of the CEO and 2 featured reports on March 2022.
the Bank were published in different national newspapers.
Some 300 regulatory and promotional advertisements
by the bank were published in the dailies. Promotional
advertisements covered bank achievements, branch opening,
banking products, national days, newspaper anniversary etc.
Regulatory

Content & materials developing in 2022
Item Qty. Item Qty. Item Qty.
TV Commercial 6 Press Advt. 35 Facebook static 491
L-shape TV display 8 Audio-visual 2 Online Video (OVC) 20
Motion/CG 70 News-portal ad 2 Bus/pickup branding 4
Magazine Ad 16 Website banner 14 Leaflet 6
Brochure 28 Poster 4 Backdrop/ X-banner 119
Greeting e-cards 5 Invitation Card 17 Festoon & Standee 160
Hand placard 8 Dangler 25 Table Topper 3
Ribbon 20 Sticker 5
(BFUJ). It also sponsored Family Day 2022 of the Economic
Publications: Reporters Forum (ERF). Buses of Iqbal Poribahan & Green
Dhaka transport services in Dhaka city have been branded
Publication is among our most used tools to inform and communicate
with IBBL which provides huge publicity.
to various stake-holders, customers and unbanked people. Annual
Report 2021 was published and promotional items like diary, Plan for 2023:
calendars and note book were printed and provided to the clients IBBL will celebrate its glorious 40th founding anniversary and
and well wishers in 2022. A manual book ‘Islami banker Binyog completion of 4 decades of Islamic banking in the country in
Paddhoti: Shariahr Neetimala’ and 3 booklets titled ‘Khudro o SME 2023. To utilize this special opportunity for increasing brand
Unnayane Islami Bank’, ‘Sarbojoneen Kolyane Mahe Ramadan’ and awareness, engaging with existing and prospective clients,
‘Ziarate Baitullah’ were published. A total of 30 brochures, leaflets, and boosting community pride and employee morale, IBBL
poster and stickers were printed. Promotional matters included items will execute complete RE-BRANDING of the bank. Besides
on deposit and investment products, ADC services, COVID-19 the following programs will be implemented:
messages, utility bill payment, A-Challan System, Grihayon Biniyog 1. Rebranding of the Bank with special focus on digital
products & services
Prokalpo, Krishi Saronjam Biniyog Prokalpo, Senior Citizen
Monthly Profit Savings Account, Expatriate Housing Deposit 2. Launching new website
Scheme, SME, Hajj as well as investment related booklets, School 3. Arranging national & international seminars on Islamic
Banking leaflets, Housing Investment Program for the Government banking
Employees brochure etc. 4. Essay competition for students through online platform
5. Quiz competition for the students through online platform
Event, Sponsorship and Roadside Publicity: 6. Patronization of Inter-School, College & University
IBBL participated in the month-long Dhaka International tournaments/competition
Trade Fair 2022 with a premier stall, in SME Fair 2022 and 7. Social Awareness Program for Road Safety &
US Trade Show 2022. The Bank sponsored different programs environmental Pollution
by 59 organization and institutions with a view to bridging 8. Publishing different books
relations with the people of various segments in the society. 9. Introducing Islamic Banking Award in association with
Our focus is on young and educated entrepreneurs, academic Economic Reporters Forum/Dhaka Reporters Unity
institutions, sports, culture and glorious heritage of the 10. Arranging several talk-show on Islamic Banking
country. Major sponsoring in the year includes Bijoy Dibos
11. Round-table discussion on Islamic Banking with
Parade-2022, 3rd Broadcast Conference 2022, Celebration of prominent dailies at their offices i.e. Prothom Alo, Daily
Joy Bangla Utshab by Bankers Association of Bangladesh, Star, Bonik Barta & Financial Express etc.
10 Years Celebration of MFS Industry in Bangladesh, and 12. Developing Video content relating to Islamic Banking
Seminar on Islamic banking system organized by Islamic with opinions of Shariah Scholars, economists & Senior
Banks Consultative Forum. Bankers which will be uploaded in Social media
13. Publishing articles on Islami Banking by eminent writer/
The Bank sponsors major national sports competition in columnist
order to accelerate the national sports, culture and heritage. 14. Press Conference on 40th Anniversary
IBBL owns a franchise cricket team Islami Bank East Zone 15. Title sponsor of national/international sports/events
for 10 years term; the team has performed in 2022 round of 16. Documentaries on Islamic Banking Success and Progress
Bangladesh Cricket League. In 2022, B&CD organized an
17. Digital Billboard in strategically important locations &
Ifter program for economic reporters of the country at Pan Bus Branding in Dhaka city
Pacific Sonargaon, Dhaka. More than 100 journalists attended
18. TV commercials, CG/Animated Video on Cellfin, ACS,
the program. Besides, the Bank sponsored arranging Iftar deposit products, utility bills & other products/services
programs by National Press Club, Dhaka Reporters Unity
19. Brochure/booklet on Islamic Banking with Shariah aspect
(DRU) and Bangladesh Federal Union of Journalists

SUCCESS
STORIES
Rina Begum
(Plant Nursery entrepreneur)
Baghata, Shilmandi, Narsingdi
“The plants of my nursery cater to the needs

of the farmers and plant lovers, and of
course help protect environment. For this
green success, as people call it, I am
indebted to Islami Bank’s RDS.”
She could have been considered a national hero for what she has She also runs an RDS-MEIS (Micro Enterprise Investment
been striving for – planting seed beds and growing plants to Scheme) in her home-attached pilot nursery initiative. From one
promote afforestation, an initiative that helps protect natural experimental block, she has been able to expand her plant
environment. Rina Begum had in 1997 become an RDS member nursery by 200 times, increasing 23 annual ceilings. By now, she
of Islami Bank Narsingdi Branch to make a living and improve runs an RDS-MEIS investment worth Tk 6,00,000.000. Her
life. She started growing and selling plants to local farmers and nursery beds are on land measuring 300 decimals. She made it
planters. In the process, she started inspiring a lot of people to do possible and continued her efforts in the past 27 years, a long
some noble works for themselves and for society. Thus, she journey with the country’s biggest private sector bank Islami
makes the planters fortunate, given the price of produces and Bank Bangladesh Limited.
more importantly the timber. Such social forest creates sanctuary
for birds, useful insects, and also bees to build their hives.
Today her six plant nurseries contribute to growing various
timber and fruit trees and medicinal (herbal) plants. She produces
saplings of teak, garjan, shimul, babla, gamary, and blackberry
among timber plants, mango, jackfruit, litchi, guava and many
other normal and all-season varieties, among fruit plants, and she
grows horitaki, bohera, tiger fern, kholisha, janglimehendi, bon
jui, kawakawa and many other rare herbal plants, among
medicinal plants.
Once upon a time, Rina Begum was a humble homemaker who
could hardly imagine becoming an entrepreneur. Upon being
invited by the RDS cluster at Baghata (Shilmandi), she was
granted a modest RDS investment as a start-up and by increasing
annual ceilings over trehw years, she is now running an RDS
investment profile of Tk. 2,00,000.00.

Swapna Rani
Bamboo & Cane Craftsman
A successful Islami Bank’s RDS
Micro-investment recipient of
Panch Pukuria Nomo Palli,
Borura, Cumilla
As Islami Bank believes in inclusive banking approach Swapna Rani was granted her first RDS investment worth
irrespective of caste, creed or faith, it has brought members of the Tk.30,000.00 in 2019. Thereafter, through increasing annual
marginal community into its compassionate fold of inclusive ceilings it rose to. Tk.40,000.00, and Tk.50,000.00 and she
banking. Panch Pukuria Nomo Palli, in Borura, Cumilla, is presently runs it at Tk.50,000.00. From her small weekly savings
covered by Islami Bank ‘Sarbojonin’ (universal) RDS unit, of Tk.100.00 she now has Tk.10,000.00 RDS savings. Almost all
which is exclusively a centre for marginal community, where members of this exceptional cluster like Swapna Rani try to keep
there are hardly 3-4 Muslim members. their transactions without default or intentional irregularities.
Swpna Rani Nomo, a member of the marginal community, is a According to her, if the investment is little enhanced they would
successful micro-investment recipient of this centre. Her be able to engage more people of their community in this
specialty is that she has organised almost all the members of her traditional craftsmanship and produce more, sell more and make
community, rallying behind Islami Bank’s RDS more people’s livelihoods. In her colloquial accent Swapna Rani
micro-investment. This center, headed by Srimoti Rani Nomo, is said, “Islami Bank has generously granted us investment to carry
named after Ma Haowa (RA) and the livelihoods of the centre’s on and expand our ancestral enterprise of bamboo and cane
25 members include making chicken cages, fishing trap (duli), works. We are grateful to the bank for its human outlook.”
basket, sieve, large baskets for cattle feed, cow masks and kula.
made of bamboo chips. Any stranger visiting the centre may find
the level of precision and speed of hand casting knots and
finishing of these bamboo cages as stunning. Some of them make
thin slices of bamboo and others hand-weave the chips into
useful items mean for cattle raising, farming and fishing.
This all-natural craftsmanship requires tenacity and constant
corroding with rough bamboo chips makes their hand skin tough.
They, however, are happy with the traditional craftsmanship
which fetches well in the rural marketplaces. They treat it as their
traditional craftsmanship. Unfortunately, the prices of their all
natural products often remain low, whereas the cost of raw
material – bamboo in this case – gets increasingly higher. The
manager of Islami Bank Borura and all RDS project officials take
adequate interest in taking care about the traditional
craftsmanship of the society’s marginl people’s small but
promising enterprises.

Taslima Ruhul
(Boutique Owner)
A successful RDS Entrepreneur
Badda-Vatpara, Savar, Dhaka North.
“From virtually nothing I am now owner

of Taslima Boutique, established my
brand identity, provided livelihoods of
so many women artisans and needle
workers, all by the grace of
Almighty Allah and with support
from the RDS investment of
Islami Bank. ”
She could have been treated as a celebrated female artisan and Her specialty ranges from embroidery works, satin and mirror
fashion-wear expert for creating embroidery patterns and many stitch, Jessore stitch, Linen Stitch, Saddle stitch, Karchupi works,
other designs on fashion fabrics like bridal dress, sharee, Stone pasting, various Jori boutiques and Hijab fashion. She was
three-piece, urna, rug and curtain, kitchen towel, bedspread and entrusted with another RDS-MEIS investment worth Tk. 4 lakh.
many other cozy wears. Savar’s Taslima Ruhul was not even an She has built a well-constructed 4-storey house. Taslima works
entrepreneur. Her husband was in the Army and posted in at home and gets orders delegated to her co-workers from home,
different parts of the country. However, wherever she lived with while her husband looks after procurement, brings large orders
her husband her name as a creative fashion designer and from wholesellers and delivers the finished goods to the points of
handicrafts-maker got popularity among the families especially delivery mostly at Islampur, Gawsia Market and Mirpur
wives and children of the officers. Section-10.
When her husband Mr. GM Ruhul Amin retired from Army they Recently while speaking to an interviewer of Islami Bank’s
became permanent inhabitants of Savar and her genius started website video, she said, “From virtually nothing I am now owner
flourishing. But for her starting a fashion tailoring business of Taslima Boutique, established my brand identity, provided
remained still a far cry due to lack of capital. At that juncture Ms livelihoods of so many women artisans and needle workers, all
Taslima got an opportunity as she became a member of Islami by the grace of Almighty Allah and with support from the RDS
Bank’s RDS Center under Savar Branch. She was granted an investment of Islami Bank.”
RDS-MEIS (Micro Enterprise Investment Scheme) investment
worth Tk.4 lakh in the year 2017 and since then she has not
looked back.
Her maiden enterprise is indeed exceptional in many counts. She
adds artistic value by decorative stitching on mostly fashion
dresses and hijab wears. Most importantly, she innovates ideas
and provides at least 300 housewives with lace, thread, and all
accessories, who take away the orders and get them done at their
home maintaining their families and children. Some of the
contractually obligated designers again get their orders
subcontracted to their neighbouing women. Altogether, Taslima
Ruhul is providing jobs to at least 5,000 women of a vast area
including Savar, Singair, Vatara and Dhamrai. These people are
earning staying at home. Taslima’s direct assistants earn monthly
wages ranging from Tk.10,000.00 up to Tk.30,000.00, depending
on their skills and speed of work.

Lovely Begum
Successful RDS Female Fruits Grower
Jangalia, Jalcchatra, Madhupur (Tangail)
“My happiness crosses all limits when

I see my plants bear fruits.”
Lovely Begum, mother of a boy and a girl children, of a remote Her aggregate investment reached nearly Tk.3 lac and savings
Madhupur village brought in fundamental changes to the life of stood around Taka 80 thousand. Lovely’s husband Kitab Ali
herself and family as well by fruit planting. aided her struggle mentally aside from physical labour to their
plants.
She now owns a well-constructed home for living while once
lived in a thatched roofed hut for years and hardly makes meals Kitab Ali oversees night time security for the plantation,cares for
for her four-member family. proper growing of plants, bought and sprayed inputs like
fertilizers and insecticides timely, harvests and sells. In their fruit
The paradigm shift from full of frustration to a smiling
plantation, they employ more than20 labourers from the same
appearance and decent living comes from relentless work at her
village. Their Son Nazmul is preparing for Secondary School
fruit plants throughout day and night, involving husband Md.
Certificate examination while daughter Sumaiya Akhter Kona is
Kitab Ali.
studying in the first year ofDakhil grade at a Madrassa.
People of all sections from her society now respect Lovely
The Lovely and Kitab Ali couple also bought and installed a
Begum and her family only because of her economic solvency
motor pump for domestic and agricultural use of water and
that comes from years of hard work at fruit plants.
connected their home with an electricity facility from the Rural
Having no land for cultivation at the beginning, Lovely now Electrification Board.Kitab Ali, riding own motorbike,
owns 6.5 Bighas of arable land for various fruit plantations. How frequently travelled through plantations and weekly rural
she brought in the changes to her life and to the disrespectful markets for sale of their plant’s fruits in quest of better prices.
attitude the people of her society showed at her before? “I‘ve struggled a lot and achieved success.
In 2013, Lovely obtained a membership of RuralDevelopment RDS is my partner in this success,” said Lovely Begum who
Scheme (RDS) of Islami Bank Bangladesh Limited (IBBL) and appeared with a smile along with her husband.
was granted an initial credit of Taka 30 thousand for fruits
“My happiness crosses all limits when I see my plants bear
plantation at a contractual private land.
fruits,” she said, adding that “I am now planning to expand my
She started planting Pineapple, Banana, Lemon, Malta, Orange plantation and RDS will stay as a partner,” she added.
and Papaya.
The fertile hilly land of Madhupur locality was kind enough to
make her farming exceptionally successful. Over the years of
rolling the investment in fruits plantation, an irresistible Lovely
Begum worked hard at her plants, attained economic capability,
paid back instalments to IBBL regularly and graduated from
leased private land as she bought 6.5 Bighas of land afterwards.

Nurunnahar Begum
Owner, JannatUnani Pharmacy,
Velanagar,Narshingdi
“I have tried to promote Unani and

Ayurbedic treatment by counselling
positive outcome and impacts and
describing less harmful side-effects
to patients and their attendants.”
Nurunnahar Begum was an ordinary housewife two and a half She was able to give her children a better living and education
decades ago from when she started Conventional Unani and and built a house for living.
Ayurbedic study aiming to heal people suffering from chronic Her journey from an ordinary housewife to becoming a
diseases; those living around her rural neighbourhoods at successful entrepreneur was not pleasing but full of challenges
Velanagar outskirts in Narshingdi district. involving prolonged endeavours.
She kept trying relentlessly and gained popularity in a short span She had no start-up funds when she was determined to create
of time among people suffering from various diseases. It gives self-employment in early 1995.
her confidence in dreaming off to grow bigger by establishing a Someone from her village informed her then about the special
shop cum counseling centre at her homestead. Her dream finally initiative of Islami Bank Bangladesh Limited (IBBL) called
comes true. She now owns ‘JannatUnani Pharmacy’. Rural Development Scheme (RDS).
Her enterprise has become a distributor of Malaysia’s famous Without any delay, she contacted RDS’s clusterUmmeHabiba
Unani brand known as DXN. The latter’s regional office is Centre, obtained a membership and received a start-up fund
located at Baridhara, Dhaka. worthTk. 15,000.
At present, Nurunnahar regularly attends a good number of That was the tale of her beginning to the journey towards
patients at her pharmacy, gives them counseling and sells becoming self-employed. Inspired by her Malyasia returned
medicine. In addition to that, she engaged some 300 agents to sell husband MirzaulHaqBhuiyan, she started learning basics of
medicines at nearby villages. Most of them are young male and Unani and Ayurbedicmedicines and never looked back.
females who get a dividend from the value of sold products as
A twelfth grader Nurunnahar gathered fast the Unani and
commission.
Ayurbedicknow-hows.
They took orders from clients and delivered medicines from
She now works at the shop while her husband looks after the
Jannat Pharmacy and other Allophathic drug stores. “The way I
distributorship and supply chain.
have developed myself was challenging and I worked a lot. But I
am happy now,” Nurunnahar said. Her monthly income now stood Tk 30 thousand after deducting
all expenses.
“I have tried to promote Unani and Ayurbedic treatment by
counselling positive outcomes and impacts and describing less JannatUnani Pharmacy’s annual turnover stands at Tk. 8.5-9.0
harmful side-effects to patients and their attendants,” she added. lakhs.
Nurunnahar’scounseling and treatment become useful and
popular among patients suffering from asthenia, diabetes,
asthma,back-pain, gastric, blood-pressure, skin and oral
disorders and liver andkidney ailments. By doing this,
Nurunnahar became economically solvent.

Mohammad Bellal Hossain
(Sea Shell Artisan & Entrepreneur)
Islami Bank’s Successful UPDS Entrepreneur
Foy’s Lake Jhinuk Market, Pahartali, Chattogram
“I found spectre and dazzle in

abandoned Shells and Oysters of the
sea in my tiny craftsmanship thanks
to the poor-focused investment
policy of Islami Bank. I am really
thankful.”
In early 2014, Belal Hossain started collecting Sea Shells and It was not easy for Belal at first to set up an enterprise at Foy’s
oysters found abandoned along the shoreline and reproduced Lake premises as he lacked adequate cash.
them in the form of gift items and ornaments for sale.
At that time, Islami Bank Bangladesh Limited (IBBL) had
From a scattered tiny street vendor, Belal has become a launched the Urban Poor Development Scheme or UPDS aiming
successful entrepreneur of Shell Kiosk at Foy’s Lake’s Jhinuk at creating employment for the disadvantaged youths living in
Market in the port city of Chittagong. Crafted and reproduced city or urban areas.
goods available at his shop included earrings, necklaces,
As a street vendor for Shell and Oyster items, Belal contacted the
photo-frames, savings pots, hand bags and ladies’ pouches and
UPDS staff, obtained membership and a sum of Taka 20
various Oysters sculptures.
thousand as investment. He then rented a shop at the Foy’s
He himself draws various marks, names or messages on the Shell Lake’s Jhinuk Market.
and Oyster surface in order to give them a look at some of the
Seeing Belal is doing well in Shell and Oyster products’
finest giveaway souvenirs. He also uses highly effective Chinese
business, the Foy’s Lake narrow enclosure has become a
gums to ensure the shells adhere well with the surface
full-fledged market overtime for crafted products made of Shell
Belal now procure shells collected by young children from the and Oysters with many other entrepreneurs opening the same
Patenga sea shores and he himself makes each of them a unique shops.
look of artefacts.
Born and raised at a remote village under the south-western
He also assigned at least 200 coastal women to make handicrafts district of Bagerhat, he travelled to Chittagong to get rid of his
using Sea Shell and Oysters bought from them in bulk. poverty. His struggle began with the sea shells. Belal is now a
father of three children and runs his family in a decent way.
This is the tale of Mohammed BelalHosain of becoming a
successful entrepreneur over the years he spends with dedication “I want to convey my heartfelt gratitude to Islami bank for
in growing business supported by his hard labour. providing me money to run my business in an organised manner.
UPDS staff regularly guided me and helped address challenges,”
Belal’s exception is adding value to the products by using boards
Belal said.
as handicraft base instead of burned clay, which makes these
less-weight and non-fragile. He said he wants to expand the showroom and engage more
people in his trade in the coming days if UPDS support
Beside the shell ornament business, he also ran a small kiosk of
continues.
coffee and light snacks. So, both have catered well to the visitors
at the Foy’s Lake and fetched a good income to run his family “I found spectre and dazzle in abandoned Shells and Oysters of
and make a small savings regularly. the sea in my tiny craftsmanship thanks to the poor-focused
investment policy of Islami Bank. I am really thankful,” he said.

Hashi Begum
(Embroidery & Handicrafts)
Successful RDS Female Entrepreneur,
Jogighopa, Sadar,Jamalpur
“Poverty once looted away my smile.

I fought against poverty a lot and
conquered it. And, I got my
smile back”.
The curse of poverty could not weaken Jamalpur’sHashi Begum. Now she is a proud owner of a well-decorated showroom at a
busy marketplace in the growing town of Jamalpur district. Her
Conquering poverty, she now leads a cluster of some 300 women
showroom is full of various products like purses, school bags,
artisans, who produce garments, clothing appliances for home
handbags, tiffin pouches, quilted-wrapping bags, textured rugs
and daily uses for her showroom located at Amlapara in
and souvenir crafts in addition to various female dresses and
Jamalpur town.
clothing appliances.
She sells the products, fetches income and disburses dividends to
Artisans of her team produce splendored goods that attract many
the female artisans.
buyers from nearby Upazilas and Districts. Wholesalers from
She runs her family as well from the shop’s income. Sherpur, Mymensingh, Netrokona. Kishoreganj and Tangail
Once she faced daily deficiency of essentials like rice, districts place orders at Hashi’s shop.
vegetables, edible oil, salt, green chili and spices to cook meals Her enterprise turns out to be an exceptional one in terms of
for her four-member family due to unemployment of her husband providing income opportunities for a significant number of rural
and no income of herself. women who work and earn from home and support their
The beginning of her fight against poverty was blessed by a small respective family.
sum of Taka 5 thousand as loan from Rural Development The problem she faces at present is that all her accessories
Scheme (RDS) of Islami Bank Bangladesh Limited (IBBL) in purchase and wages for the contacted artisans are subject to cash
late 1995. imbursement. On the other hand, a significant proportion of
Initially, she engaged her close neighbours in tailoring fashion payment from whole-sellers against sold goods stands due over
wear such as Urna (Scarf), Frock (Gown) and night-dresses, months.
embroidery on unstitched three-pieces, and producing pillow At this point, she demands enhancement of the RDS ceiling of
cover, bed sheet, cap and hijabs. investment to comfortably cope with the market reality.
Hashi collects the products and approaches shop owners at Yet, Hashi Begum’s smiling appearance portrays the story of
different markets in Jamalpur town for sale. how she conquered poverty by the IBBL’s credit assistance.
She got a positive response from shop owners and fetched hefty “Poverty once looted away my smile. I fought against poverty a
income from selling the products. lot and conquered it. And, I got my smile back thanks to RDS,”
Hashi said.
Hashi’s clean transactions with both female artisans and the
IBBL’s RDS helped her a lot to build reputation and grow She now owns a well-constructed home too.
business. At one stage, the bank enhanced her credit ceiling and Her husband (name missing in story) and son NazmulHasan
assisted her in owning a shop. works at the showroom.

Says, (Name Missing)
Head, Tribal Community
FaitongBoroitola, Lama Upazila.
“Suma is highly pleased at the equal

opportunity treatment of Islami Bank
in providing financial assistance for
generating income of people of the
locality irrespective of religion,
caste and clan. The bank has set an
example of co-living with people
of all ethnicities in the locality
with peace and Fraternity.”
Suma Chakma owns around 66 acres of land inherited from She now employs some 20 workers to look after the fruit plant;
paternal ancestry but had no income from the vast hilly lands; some of them are women and mostly Muslim neighbours living
neither she had any idea of turning those land to use for in the same locality.
generating income in a scientifically organised way.
“Suma neither afraid of hooligans nor even the unruly elephants,
Her husband, MihirDewan, was unaware too of the economic who often rush to human abodes and surrounding areas in quest
potentiality of those lands. for food,” said Anwara, who was narrating the tale of renewed
life of Suma and Mihir couple.
The Couple's farming was limited in the courtyard for growing
vegetables for daily consumption only. “Alongwith with husband and children, she courageously lives
and cultivates in the high patch of hilly land. She bought power
Their ancestral home and native lands are located in
pumps, tillers, fishery machines and got electricity connections
FaitongBoroitola under Lama Upazila of the hilly district of
for the household and the plantation at the peak of the hilly
Bandarban.
terrain.
Anwara Begum, head of Rural Development Scheme (RDS) of
The couple’s eldest daughter DristiDewan has been sent off to
Islami Bank’s Chakaria Branch, once visited the Mihir-Suma
college in the town and their second daughter is at school while
couple’s residence and started motivating them to grow fruit
the youngest son prepares himself at home to go to school next
varieties on their hilly terrain.
year.
Anwara brought the couple to Chakaria RDS, offered
Beside, regular caring for her orchard, she also cultivates fish in
membership and granted a Taka 40 thousand loan to start fruit
a hill-top pond. The virgin hilly remains so fertile that no
gardening on their ancestral and virgin moorland.
chemical fertilizer was required at all, except for some cow dung
The couple then started preparing the land and planted fruit and vermin-compost for the plantation.
saplings like orange, malta, papaya, gourd, pineapple,
The local Union Parishad’s tribal chief, made the observation
dragon-fruit, guava, mango and litchis.
about Suma Chakma, saying, “She is highly pleased at the ‘equal
Anwara guided them about proper care and regular nursing of the opportunity treatment’ of Islami Bank in providing financial
plantation and as result, the couple met a huge success in fetching assistance for generating income of people of the locality
a large profit over the time from selling harvests. Total value of irrespective of religion, caste and clan.”
her annual sales stands at Tk 10 lakh at present.
Suma's fruit plant is now a glaring example of tribal and
inhabitants of other descendants of the locality.
She often offers fruits from her plant as gifts to neighbours,
especially when their relatives visit them.

ManirAhmed
(Poultry Raiser)
Successful RDS and MEIS Entrepreneur
Maijghona, Shaherbill,Chakaria, Cox’s Bazar
“From the loss caused by the death of a lot

of chicks, I have learned vaccinations
myself and necessary tips to address
healthcare issues of the poultry chicks
for their proper growth. RDS staffers
helped me in it by motivating me to
gather more experience. As a result,
the mortality rate comes to zero at
my farm”.
Manir Ahmed of Chakaria Upazila under the coastal district of “From the loss caused by death of a lot of chicks, I have learned
Cox’s Bazar was an expatriate worker in Saudi Arabia and vaccinations myself and necessary tips to address healthcare
Dubai (UAE) for a couple of decades. issues of the poultry chicks for their proper growth. RDS staffs
helped me in it by motivating me to gather more experience. As
In the year 2018, he finally returned home and was striving to set
result, the mortality rate comes to zero at my farm,” Manir said.
a business in his locality.
His wife, Mrs Sharmin Akhter also looks after the hatchery,
But, almost all of the cash he remitted to his family from income
setting eggs, and getting the DOC chicks raised. The hatchery is
abroad were spent in construction of a four-storied residential
mainly run by Manir Ahmed and his younger brother. He is
building for a decent living.
blessed with four sons. The elder son is now getting prepared to
Afterwards, he fought a lot to manage cash to start a business. get admitted to Chittagong Medical College while the second son
Initially, he managed a sum of Taka 50 thousand from Maijghona is studying at 10th grade. The third son has been sent to Madrassa
Rural Development Scheme (RDS) cluster of Islami Bank and the fourth son is a five-year-old kid.
Bangladesh Limited (IBBL) in order to set up a shed for raising
Manir’s work and business growth has created an example in the
poultry.
locality and he is heading the Maijghona RDS Center at present.
He bought Day One Chick (DOC) and successfully raised them Some 45 members were enlisted at the RDS centre and all of
for a few seasons and fetched a hefty profit from selling the them are male entrepreneurs.
well-groomed matured broiler chickens. His enterprise at present
He expressed profound gratitude to the IBBL for supplying
is hatching eggs and raising the poultry from DOCs for sale.
finance to aspirant poultry entrepreneurs to start their respective
By this time, he raised the ceiling of investment from RDS and farms in the locality.
bought a medium-sized Setter and Hatcher for bulk production of
different varieties of chicken and ducks chicks.
His businesses were running properly, paving the way of
sufficient income for his family and savings for the future. In
The year 2020, he had to face a disastrous setback during
Covid-19 Pandemic as he incurred a significant loss from the
death of around 50 thousand chicks.
His savings worth Taka 20 lakh with the RDS then become
useful in rejuvenating the business and recovering from losses.
Manir also paid back all the installments against the RDS loan.

Mina Rani Dey
Betel Leaf Planter
A successful RDS Micro-investment
Recipient of
Shahar Padua, Borura, Cumilla
“I did not feel any hesitation in

obtaining an RDS investment, nor
did I ever find any discriminatory
behaviour from the bank officials.”
Bonura’s Mina Rani Dey has been an Islami Bank RDS case of Mina Day's success in farm enterprise is exceptional on many
how a massive number of rural women's empowerment upholds counts. She neither felt any hesitation in obtaining the RDS
universal, welfare-oriented aspect of micro investment investment, nor did she find discriminatory behaviour from the
regardless of ones caste, creed, faith and any other difference in authorities. With due diligence and hard labour, she managed to
society. Benefiting from a humble investment she now runs a make her fortune. She has widely been respected for her
huge betel leaf (paan) plantation on a patch of leased-in land of commitment and she never defaulted in paying weekly
three bighas (one acre). Her success has been in the investment of installment. Mina Dey has now become self-sufficient
Islami Bank’s rural upliftment scheme. Despite being a overcoming her hardship, thanks to the RDS investment support
non-Muslim member among Muslim women, she feels at home, of Islami Bank She has been able to buy a patch of 16 decimal
thanks to Islami Bank’s approach to her and encouraged to find land where she has planned to build her fourth betel-nut
the Bank in her journey of entrepreneurship. plantation in a larger way. She says, “I did not feel any hesitation
in obtaining an RDS investment, nor did I ever find any
In the year 2019 she was invited to be a member of RDS under discriminatory behaviour from the bank officials.”
Islami Bank Borura Branch in Comulla. In the first year of her
journey she was granted an RDS investment of Tk 30,000.00.
Through three consecutive annually enhanced ceilings
(Tk.30,000,00 and Tk. 60,000,00), she now runs her investment
to the tune of Tk.70,000.00. In 2019 her weekly installment was
Tk.750.00 nd plus weekly savings of Tk.150.00, which she now
pays back by a weekly installment of Tk 1,850.00 plus a weekly
savings of Tk.100.00. She has so far saved Tk.70,000.00 and
never withdrew any amount from her savings.
She has learned a wonderful money management from her

experience, apart from skills for betel-leaf plantation, plucking,
packaging and selling it out in the market, especially in two
weekly markets (hats). She has all along been helped in running
her enterprise by her dedicated husband Nitai Chandra Dey, who
mostly looks after their paddy, vegetables and other plantations.

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INDEPENDENT
AUDITORS’ REPORT

Independent Auditors’ Report
To the Shareholders of
Report on the Audit of the Consolidated and Separate Financial Statements

Opinion
We have audited the consolidated financial statements of Islami Bank Bangladesh Limited and its subsidiaries (the "Group") as well as the
separate financial statements of Islami Bank Bangladesh Limited (the "Bank"), which comprise the consolidated and separate Balance Sheets
as at 31 December 2022, and consolidated and separate Profit and Loss Accounts, consolidated and separate statement of Changes in Equity,
and consolidated and separate Cash Flow Statements for the year then ended, and notes to consolidated and separate financial statements,
including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements of the Group and separate financial statements of the Bank give a true and
fair view of the consolidated financial position of the Group and the separate financial position of the Bank as at 31 December 2022, and of
its consolidated and separate financial performance and its consolidated and separate Cash Flows for the year then ended in accordance with
International Financial Reporting Standards (IFRSs) as explained in Note 2.
Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in Auditors’ Responsibilities for the Audit of the Consolidated and Separate Financial Statements section of our report. We are
independent of the Group and the Bank in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for
Professional Accountants (IESBA Code), Bangladesh Securities and Exchange Commission (BSEC), and Bangladesh Bank, and we have
fulfilled our other ethical responsibilities in accordance with the IESBA Code and the Institute of Chartered Accountants of Bangladesh
(ICAB) Bye-Laws. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of the most significance in our audit of the consolidated and
separate financial statements of the current period. These matters were addressed in the context of our audit of the consolidated and separate
financial statements as a whole, and informing our opinion thereon, and we do not provide a separate opinion on these matters.
Description of key audit matters Our response and result to key audit matters
Measurement of Provision for Investments
The process for estimating the provision for the investment We tested the design and operating effectiveness of key controls
portfolios associated with credit risk is significant and complex. focusing on the following:
For the individual analysis for large exposure, provision calculation Credit appraisal, investment disbursement procedures, monitoring
considers the estimates of future business performance and the and provisioning process;
market value of the collateral provided for credit transactions. Identification of loss events, including early warning and default
For the collective analysis of exposure on a portfolio basis, provision warning indicators;
calculation and reporting are manually processed that deal with Reviewed the adequacy of the transfer of profits to the Income
voluminous databases, assumptions and estimates. account appropriate approvals in line with the Bangladesh Bank’s
Due to the high level of judgment involved and using the manual guidelines. Reviewed the adequacy of the general and specific
process in estimating the provision for investment, we considered provisions in line with related Bangladesh Bank guidelines.
this to be a key audit matter. Reviewed the grounds for recommendations for approvals in
cases of transfer of profits to Income account;
At year end the Group and the Bank reported total net investments
of BDT 1,456,365 million (2021: BDT 1,186,173 million) and BDT Assessed the methodologies on which the provision amounts are
1,461,365 million (2021: BDT 1,191,173 million) respectively based, recalculated the provisions, and tested the completeness
and provision for investments of BDT 59,881 million (2021: BDT and accuracy of the underlying information;
53,272 million) and BDT 59,881 million (2021: BDT 53,272 Evaluated the appropriateness and presentation of disclosures
million). against relevant accounting standards and Bangladesh Bank
guidelines;
Finally, compared the amount of provision requirement as
determined by the Bangladesh Bank inspection team to the actual
amount of provision maintained.
Our results: Based on our procedure performed we have concluded
that the provision for investments disclosed in the financial statements
is adequate.
See note no. 11 and 17.1 to the financial statements

Recognition of Investment income
Recognition of Investment income has significant and wide We tested the design and operating effectiveness of key controls over
influence on financial statements. Recognition and measurement of the recognition and measurement of investment income.
Investment income has involvement of complex IT environments. We performed tests of operating effectiveness on automated control
We identify recognition of Investment income as a key audit matter in place to measure and recognise investment income.
because this is one of the key performance indicators of the Bank We have also performed substantive procedures to check whether
and therefore there is an inherent risk of fraud and error in the investment income is recognised completely and accurately.
recognition of Investment income by management to meet specific
targets or expectations. We assessed the appropriateness and presentation of disclosure
against relevant accounting standards and Bangladesh Bank
At the year end the Group and the Bank reported total gross guidelines.
investment income of BDT 87,878 million (2021: BDT 73,269
million) and BDT 87,984 (2021: BDT 73,410 million). Our results: Based on our procedure performed we have concluded
that the recognition investment income disclosed in the financial
statements of is in line with Bangladesh Bank Circulars.
See note no. 24 to the financial statements
Impairment assessment of unquoted investments
In the absence of a quoted price in an active market, the fair value of We have assessed the processes and controls put in place by the Bank
unquoted shares and bonds, especially any impairment is calculated to ensure all major investment decisions are undertaken through a
using valuation techniques which may take into consideration direct proper due diligence process.
or indirect unobservable market data and hence require an elevated We tested a sample of investments valuation as at 31 December 2022
level of judgment. and compared our results to the recorded value.
Finally, we assessed the appropriateness and presentation of
disclosures against relevant accounting standards and Bangladesh
Bank guidelines.
Our results: Based on our procedure, we concluded that the
Impairment assessment of unquoted investments disclosed in the
financial statements is in line with Bangladesh Bank Circulars.
See note no. 10 to the financial statements
IT systems and controls
Our audit procedures have a focus on IT systems and controls due We tested the design and operating effectiveness of the Bank’s IT
to the pervasive nature and complexity of the IT environment, the access controls over the information systems that are critical to
large volume of transactions processed in numerous locations daily financial reporting.
and the reliance on automated and IT dependent manual controls.
Our areas of audit focus included user access management, We tested IT general controls (logical access, changes management
developer access to the production environment and changes to and aspects of IT operational controls). This included testing that
the IT environment. These are key to ensuring IT dependent and requests for access to systems were appropriately reviewed and
application-based controls are operating effectively. authorized.
We tested the Bank's periodic review of access rights and reviewed
requests of changes to systems for appropriate approval and
authorization.
We considered the control environment relating to various interfaces,
configurations and other application layer controls identified as key
to our audit.
We performed the Tests of IT General Controls to evaluate the
Application Development and Database, Hosting Platforms and
segregation of incompatible duties relevant to application and
database change management.
Our results: Based on the procedure performed, we have considered
the change managements, segregation of duties, controls, and
outputs in relation to financial accounting and reporting systems to
be acceptable.

Legal and Regulatory matters
We focused on legal and regulatory matters because the Group We obtained an understanding of the Group and The Bank’s key
and the Bank operate in a legal and regulatory environment that controls over the legal provision and contingencies process.
is exposed to significant litigation and similar risks arising from We enquired to those charged with governance to obtain their view
disputes and regulatory proceedings. Such matters are subject to on the status of all significant litigation and regulatory matters.
many uncertainties and the outcome may be difficult to predict.
We enquired of the Bank’s internal legal counsel for all significant
These uncertainties inherently affect the amount and timing litigation and regulatory matters and inspected internal notes and
of potential outflows with respect to the provisions and other reports. We also received formal confirmations from external
contingent liabilities. counsels.
We assessed the methodologies on which the provision amounts are
based, recalculated the provision, and tested the completeness and
accuracy of the underlying information.
We also assessed the Bank’s provisions and contingent liabilities
disclosure.
Our results: Based on the procedure performed, we have considered
the bank’s legal affairs and communicated with the legal advisors
and panel lawyers to assess the bank’s legal & regulatory positions.
Other Matters
1. The financial statements of the group and the Bank for the year ended 31 December 2021 were audited by A. Qasem & Co., Chartered
Accountants and Hoda Vasi Chowdhury & Co., Chartered Accountants who expressed an unmodified opinion on those statements on 26
April 2022.
2. On verification of our selected sample investments, we observed some documentation and procedural lapses in some investments and
security against some investment clients were not on the expected level.
Other information
Management is responsible for the other information. The other information comprises all of the information in the Annual Report other than
the consolidated and separate financial statements and our Auditors’ report thereon. The Annual Report is expected to be made available to
us after the date of this Auditors’ report.
Our opinion on the consolidated and separate financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other information identified
above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to
the board of directors of the Bank.
Responsibilities of Management and Those Charged with Governance for the Consolidated and Separate
Financial Statements and Internal Controls
Management is responsible for the preparation and fair presentation of the consolidated financial statements of the Group and also separate
financial statements of the Bank in accordance with IFRSs as explained in note 2 and for such internal control as management determines is
necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to
fraud or error. The Bank Company 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.
In preparing the consolidated and separate financial statements, management is responsible for assessing the Group's and the Bank's ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Group and the Bank or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's and the Bank's financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated and Separate Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an Auditors’ report that includes our opinion. Reasonable assurance is a
high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
 Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by management.
 Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the
Bank's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
Auditors’ report to the related disclosures in the consolidated and separate financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors’ report. However, future
events or conditions may cause the Group and the Bank to cease to continue as a going concern.
 Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures,
and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
 Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to
express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit
of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our Auditors’ report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Report on other Legal and Regulatory Requirements

In accordance with the Companies Act 1994 (as amended up to date), the Securities and Exchange Rules 2020, the Bank Company Act 1991
(as amended up to date), the Financial Reporting Act 2015, and the rules and regulations issued by Bangladesh Bank, we also report that:
(i) 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 verification thereof;
(ii) to the extent noted during the course of our audit work performed on the basis stated under the Auditors’ Responsibility section in
forming the above opinion on the consolidated financial statements 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:

(a) internal audit, internal control and risk management arrangements of the Group as disclosed in the financial statements appeared to be
not materially adequate as mention in of Other Matters Para (Para 2) of this report;
(b) 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 Group and its related entities (other than matters disclosed in these financial
statements);
(iii) financial statements for the year ended 31 December 2022 of two (02) subsidiaries namely Islami Bank Securities Limited and Islami
Bank Capital Management Limited have been audited by K. M. Hasan & Co., Chartered Accountants and Khan Wahab Shafique
Rahman & Co., Chartered Accountants respectively and have been properly reflected in the consolidated financial statements;
(iv) 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;
(v) the records and statements submitted by the branches have been properly maintained and consolidated in the financial statements;
(vi) the consolidated balance sheet and consolidated profit and loss account together with the annexed notes dealt with by the report are in
agreement with the books of account and returns;
(vii) the expenditures incurred were for the purpose of the Bank's business for the year;
(viii) the consolidated financial statements of the Group and the separate financial statements of the Bank have been drawn up in conformity
with prevailing rules, regulations and accounting standards as well as related guidance issued by Bangladesh Bank;
(ix) adequate provisions have been made for advance and other assets as per Bangladesh Bank’s DBI letter no.: DBI-6/51(1)/2023-361,
dated 26 April 2023 which are in our opinion, doubtful of recovery;
(x) the information and explanations required by us have been received and found satisfactory;
(xi) we have reviewed over 80% of the risk weighted assets of the Bank and spent over 13,456 person hours; and
(xii) Capital to Risk-weighted Asset Ratio (CRAR) as required by Bangladesh Bank has been maintained adequately during the year.
Dated: Dhaka Signed for & on behalf of Signed for & on behalf of
27 April 2023 ACNABIN Howladar Yunus & Co.
Chartered Accountants Chartered Accountants
Md. Moniruzzaman, FCA Muhammad Farooq, FCA

ICAB Enrolment No.: 0787 ICAB Enrolment No.: 0521
DVC No: 2304270787AS974221 DVC No: 2304270521AS239039

FINANCIAL
STATEMENT

Islami Bank Bangladesh Limited and its Subsidiaries
Consolidated Balance Sheet
As at 31 December 2022
31.12.2022 31.12.2021
Particulars Notes
Taka Taka
Property and Assets

Cash in hand 7(a) 123,504,817,210 246,163,452,756
Cash in hand (including foreign currency) 7(a)(i) 30,645,839,722 22,101,061,649
Balance with Bangladesh Bank & its agent bank(s) (including foreign currency) 7(a)(ii) 92,858,977,487 224,062,391,107
Balance with other banks & financial institutions 8(a) 115,248,794,287 80,968,445,974
In Bangladesh 8(a)(i) 91,304,035,057 66,383,997,842
Outside Bangladesh 8(a)(ii) 23,944,759,230 14,584,448,132
Placement with banks & other financial institutions 9.0 - -
Investments in shares & securities 10(a) 91,390,357,315 95,651,798,804
Government 10(a)(i) 72,173,862,507 75,352,686,843
Others 10(a)(ii) 19,216,494,808 20,299,111,961
Investments 1,456,365,497,513 1,186,173,000,246
General investments etc. 11.1(a) 1,321,643,607,786 1,132,670,855,057
Bills purchased & discounted 11.2(a) 134,721,889,727 53,502,145,189
Fixed assets including premises 12(a) 18,455,370,440 18,397,103,217
Other assets 13(a) 33,740,284,483 9,315,773,066
Non - banking assets - -
Total property and assets 1,838,705,121,249 1,636,669,574,064
Liabilities and Capital

Liabilities
Placement from banks & other financial institutions 14(a) 187,438,369,400 36,765,300,000
Deposits & other accounts 15(a) 1,409,314,554,809 1,380,849,221,889
Mudaraba savings deposits 445,551,006,782 476,486,444,598
Mudaraba term deposits 512,205,793,676 488,217,932,723
Other mudaraba deposits 288,017,702,760 282,105,508,078
Al- wadeeah current and other deposit accounts 153,251,630,052 125,921,848,016
Bills payable 10,288,421,539 8,117,488,474
Mudaraba bond 16.0 31,000,000,000 30,775,840,000
Perpetual bond 16.1 11,000,000,000 10,175,840,000
Redeemable subordinated bond 16.2 20,000,000,000 20,600,000,000
Other liabilities 17(a) 139,924,699,279 120,971,862,923
Deferred tax liabilities 18(a) 1,456,384,003 1,580,687,903
Total liabilities 1,769,134,007,491 1,570,942,912,715
Capital/shareholders' equity 69,571,113,758 65,726,661,349

Paid - up capital 19.2 16,099,906,680 16,099,906,680
Statutory reserve 21.0 21,735,466,258 20,735,466,258
Other reserves 22.(a) 28,772,608,153 26,141,424,690
Retained earnings 40(a) 2,962,834,552 2,749,579,142
Non-controlling interest 40(b) 298,115 284,579
Total liabilities & shareholders' equity 1,838,705,121,249 1,636,669,574,064

Consolidated Balance Sheet
31.12.2022 31.12.2021
Particulars Notes
Taka Taka
Off-balance sheet items

Contingent liabilities
Acceptances & endorsements - -
Letters of guarantee 23.0 31,062,266,163 29,281,985,371
Irrevocable letters of credit (including back to back bills) 182,573,222,307 190,036,120,488
Bills for collection 54,371,798,351 45,519,344,775
Other contingent liabilities 8,174,045 8,174,045
Total 268,015,460,865 264,845,624,679
Other commitments
Documentary credits, short term and trade related transactions - -
Forward assets purchased and forward deposits placed - -
Undrawn note issuance, revolving and underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
Total - -
Total off-balance sheet items including contingent liabilities 268,015,460,865 264,845,624,679
The annexed notes form an integral part of these financial statements.
Chairman Director Director Managing Director & CEO
This is the consolidated balance sheet referred to in our separate report of even date
Signed for & on behalf of Signed for & on behalf of

ACNABIN Howladar Yunus & Co.

ICAB Enrolment no: 0787 ICAB Enrolment no: 0521
DVC No: 2304270787AS974221 DVC No: 2304270521AS239039
Dated: Dhaka, 27 April 2023

Consolidated Profit & Loss Account
For the year ended 31 December 2022
2022 2021
Particulars Notes
Taka Taka
Operating income
Investment income 24(a) 87,878,348,352 73,268,555,448
Profit paid on mudaraba deposits 25(a) (54,018,484,481) (44,885,789,843)
Net investment income 33,859,863,871 28,382,765,605
Income from investments in shares & securities 26(a) 2,988,738,075 2,740,647,792
Commission, exchange & brokerage income 27(a) 9,436,072,988 7,337,753,687
Other operating income 28(a) 6,831,431,761 5,574,215,305
19,256,242,824 15,652,616,784
Total operating income 53,116,106,695 44,035,382,389
Operating expenses
Salary & allowances 29(a) 20,303,342,230 17,343,646,887
Rent, taxes, insurances, electricity etc. 30(a) 2,142,549,324 1,669,553,986
Legal expenses 31(a) 12,532,875 8,114,679
Postage, stamps and telecommunication etc. 32(a) 130,865,549 102,973,928
Stationery, printing and advertisement etc. 33(a) 299,406,016 244,250,421
Chief executive's salary & fees 34.0 18,069,000 17,380,000
Directors' fees & expenses 35(a) 5,366,579 5,747,621
Shari'ah supervisory committee's fees & expenses 36.0 1,713,265 1,311,930
Auditors' fees 37(a) 3,599,500 4,174,500
Depreciation and repair to bank's assets 38(a) 1,688,445,675 1,640,438,555
Zakat expenses 17.8 970,999,128 894,913,964
Other expenses 39(a) 5,789,485,517 4,925,071,661
Total operating expenses 31,366,374,658 26,857,578,131
Profit/ (loss) before provision 21,749,732,036 17,177,804,257
Provision for investments & off- balance sheet exposures 17.1.4 6,364,930,031 5,072,923,726
Provision for diminution in value of investments in shares 17.2(a) 483,145,333 313,776,730
Other provisions 17.4 (36,700,445) 45,201,095
Total provision 6,811,374,919 5,431,901,551
Total profit/(loss) before taxes 14,938,357,117 11,745,902,706
Provision for taxation for the period 8,771,358,888 6,938,337,515
Current tax 17.7(a) 8,870,670,581 6,936,163,283
Deferred tax 18(b) (99,311,693) 2,174,232
Net profit/ (loss) after tax 6,166,998,229 4,807,565,191
Net profit after tax attributable to: 6,166,998,229 4,807,565,191
Equity holders of IBBL 6,166,984,693 4,807,547,402
Non-controlling interest 40(b) 13,536 17,789
Retained earnings from previous year 2,749,579,142 2,606,778,640
Revaluation reserve of securities transferred to retained earnings 30,491,680 -
Add: Net profit after tax (attributable to equity holders of IBBL) 6,166,984,693 4,807,547,402
Add: Excess depreciation on revalued amount of building transferred from assets revaluation 22.2 85,190,953 87,375,336
reserve to retained earnings
Add: Start-up Fund transferred for adjustment - 102,772,133
Less: Adjustment for changing in shares position of IBSL - (50,000)
Profit available for appropriation 9,032,246,468 7,604,423,511
Appropriation: 9,032,246,468 7,604,423,511
General reserve 2,593,011,985 1,974,430,003
Dividend (previous year) 40.0 1,609,990,668 1,609,990,668
Start-up Fund 17.9 59,234,456 46,392,029
Coupon/dividend on perpetual bond 40(a) 807,174,807 224,031,669
Retained earnings 40(a) 2,962,834,552 2,749,579,142
Consolidated earnings per share 42(a) 3.83 2.99
This is the consolidated profit & loss account referred to in our separate report of even date

DVC No: 2304270787AS974221 DVC No: 2304270521AS239039

Consolidated Cash Flow Statement
2022 2021
Particulars Note
Taka Taka
Cash flows from operating activities
Investment income 77,238,243,085 67,268,555,448
Profit paid on mudaraba deposits (50,500,370,309) (44,962,696,687)
Income/ dividend receipt from investments in shares & securities 461,025,636 3,676,017,738
Fees & commission receipt in cash 9,436,072,988 7,337,753,687
Recovery from written off investments 244,773,412 93,360,314
Payments to employees (20,034,174,646) (17,001,629,950)
Cash payments to suppliers (446,034,682) (497,470,295)
Income tax paid (6,866,734,554) (7,365,418,874)
Receipts from other operating activities 8,085,260,824 6,206,403,402
Payments for other operating activities (8,033,977,394) (6,714,500,202)
(i) Operating profit before changes in operating assets and liabilities 9,584,084,359 8,040,374,581
Changes in operating assets and liabilities
Increase/(decrease) of statutory deposits - -
(Increase)/decrease of net trading securities (126,856,928) (126,856,928)
(Increase)/decrease of placement to other banks - -
(Increase)/decrease of investments to customers (265,192,497,267) (150,885,117,913)
(Increase)/decrease of other assets (24,267,823,192) 5,245,265,567
Increase/(decrease) of placement from other banks 150,673,069,400 (7,704,018,312)
Increase/(decrease) of deposits from other banks 5,130,458,954 1,122,055,609
Increase/(decrease) of deposits received from customers 22,202,491,604 200,033,745,641
Increase/(decrease) of other liabilities account of customers - -
Increase/(decrease) of trading liabilities - -
Increase/(decrease) of other liabilities 12,347,402,773 11,122,670,218
(ii) Cash flows from operating assets and liabilities (99,233,754,656) 58,807,743,882
Net cash flows from operating activities (A)=(i+ii) (89,649,670,296) 66,848,118,463
Cash flows from investing activities
Proceeds from sale of securities/BGIIB/Sukuk 10,767,079,949 (14,309,625,648)
Payment for purchase of securities/BGIIB/Sukuk (6,749,618,542) (6,749,618,542)
Placement to Islamic Refinance Fund Account - -
Payment for purchase of securities/membership - -
Purchase/sale of property, plants & equipments (1,389,073,900) (2,040,153,663)
Purchase/sale of subsidiaries - -
Net Cash flows from investing activities (B) 2,628,387,507 (23,099,397,853)
Cash flows from financing activities
Receipts from issue of debt instruments 3,824,160,000 7,175,840,000
Payment for redemption of debt instruments (3,600,000,000) (2,400,000,000)
Receipts from issuing ordinary share/ right share - -
Dividend paid in cash (1,609,990,668) (1,609,990,668)
Net cash flows from financing activities (C) (1,385,830,668) 3,165,849,332
Net increase/(decrease) in cash (A+B+C) (88,407,113,457) 46,914,569,941
Add/(less): effects of exchange rate changes on cash & cash equivalent 28,826,224 (749,193)
Add: cash & cash equivalents at beginning of the year 327,131,898,729 280,218,077,981
Cash & cash equivalents at the end of the year 45(a) 238,753,611,497 327,131,898,729
This is the consolidated cash flow statement referred to in our separate report of even date

DVC No: 2304270787AS974221 DVC No: 2304270521AS239039

Consolidated Statement of Changes in Equity
(Amount in Taka)
General/ Assets Revaluation Non-
Paid-up Share Statutory Retained
Particulars other revaluation reserve of controlling Total
capital premium reserve earnings
reserves (*) reserve securities interest
1 2 3 4 5 6 7 8 9 10
Balance as at 01 January 2022 16,099,906,680 1,989,633 20,735,466,258 16,941,188,982 9,071,295,675 126,950,400 2,749,579,142 284,579 65,726,661,349
Deferred tax on revaluation surplus - - - - - (6,954,400) - - (6,954,400)
Deferred tax impact on excess depreciation - - - - 31,946,607 - - - 31,946,607
Depreciation adjustment on revalued fixed assets - - - - (85,190,953) - 85,190,953 - -
Surplus/ (deficit) on account of revaluation - - - - - 69,544,000 - - 69,544,000
Currency translation differences - - - 28,826,224 - - - - 28,826,224
Net gain and losses not recognized in the income - - - - - - 30,491,680 - 30,491,680
statement/ Revaluation reserve of securities
transferred to retained earnings
Net profit for the year - - - - - - 6,166,984,693 13,536 6,166,998,229
Transfer to (from) reserve - - 1,000,000,000 2,593,011,985 - - (3,593,011,985) - -
Dividend:
Bonus shares - - - - - - - - -
Cash dividend - - - - - - (1,609,990,668) - (1,609,990,668)
Start-up Fund transferred from retained earnings - - - - - - (59,234,456) - (59,234,456)
Coupon/dividend on perpetual bond - - - - - - (807,174,807) - (807,174,807)
Total shareholders' equity as on 31 December 2022 16,099,906,680 1,989,633 21,735,466,258 19,563,027,192 9,018,051,329 189,540,000 2,962,834,552 298,115 69,571,113,758
Add: Mudaraba perpetual bond - - - - - - - 11,000,000,000
Add: Mudaraba redeemable subordinated bond - - - - - - - - 20,000,000,000
Add: General provision for unclassified investments and - - - 17,806,581,509 - - - - 17,806,581,509
off- balance sheet items (Note-3.14.7)
Less: Year wise redemption - - - - - - - - (4,800,000,000)
Adjustment for intangible assets - - - (176,248,635) - - - - (176,248,635)
Adjustment for currency translation differences - - - (46,453,350) - - - (46,453,350)
Less: Assets revaluation reserve (Note-3.14.4) - - - - (9,018,051,329) - - - (9,018,051,329)
Less: Revaluation reserve of securities (Note-3.14.5) - - - - (189,540,000) - - (189,540,000)
Total equity as on 31 December 2022 16,099,906,680 1,989,633 21,735,466,258 37,146,906,716 - - 2,962,834,552 298,115 104,147,401,953
(*)Note : General / other reserves

Particulars 01.01.2022 01.01.2021
General reserve 16,891,561,856 14,917,131,853
Dividend equalization account 32,000,000 32,000,000
Currency translation differences 17,627,126 18,376,319
Total 16,941,188,982 14,967,508,172
ANNUAL REPORT 2022

249
250
Consolidated Statement of Changes in Equity
(Amount in Taka)
Revaluation Non-con-
ANNUAL REPORT 2022

Paid-up Share Statutory General/ other Assets revalua- Retained
Particulars reserve of trolling Total
capital Premium reserve reserves tion reserve earnings
securities interest
1 2 3 4 5 6 7 8 9 10
Balance as at 01 January 2021 16,099,906,680 1,989,633 19,735,466,258 14,967,508,172 9,125,905,260 72,115,200 2,606,778,640 274,980 62,609,944,823
Deferred tax on revaluation surplus - - - - - (6,092,800) - - (6,092,800)
Deferred tax impact on excess depreciation - - - - 32,765,751 - - - 32,765,751
Depreciation adjustment on revalued fixed assets - - - - (87,375,336) - 87,375,336 - -
Surplus/ (deficit) on account of revaluation - - - - - 60,928,000 - - 60,928,000
Currency translation differences - - - (749,193) - - - - (749,193)
Net gain and losses not recognized in the income statement - - - - - - - - -
Net profit for the year - - - - - - 4,807,547,402 17,789 4,807,565,191
Transfer to (from) reserve - - 1,000,000,000 1,974,430,003 - - (2,974,430,003) - -
Dividend: - - - - - - -
Bonus shares - - - - - - - - -
Cash dividend - - - - - - (1,609,990,668) (8,190) (1,609,998,858)
Start-up Fund transferred to retained earnings for - - - - - - 102,772,133 - 102,772,133
adjustment against 2020
Start-up Fund transferred from retained earnings - - - - - - (46,392,029) - (46,392,029)
Coupon/dividend on perpetual bond - - - - - - (224,031,669) - (224,031,669)
Less: Adjustment for changing in shares position of IBSL - - - - - - (50,000) - (50,000)
Total shareholders' equity as on 31 December 2021 16,099,906,680 1,989,633 20,735,466,258 16,941,188,982 9,071,295,675 126,950,400 2,749,579,142 284,579 65,726,661,349
Add: Mudaraba redeemable subordinated bond - - - - - - - - 20,600,000,000
Add: General provision for unclassified investments - - - 16,041,678,293 - - - - 16,041,678,293
and off- balance sheet items (Note-3.14.7)
Less: Year wise redemption - - - - - - - - (3,600,000,000)
Adjustment for intangible assets - - - (216,440,708) - - - - (216,440,708)
Less: Assets revaluation reserve (Note-3.14.4) - - - - (9,071,295,675) - - - (9,071,295,675)
Less: Revaluation reserve of securities (Note-3.14.5) - - - - (126,950,400) - - (126,950,400)
Total equity as on 31 December 2021 16,099,906,680 1,989,633 20,735,466,258 32,748,799,442 - - 2,749,579,142 284,579 99,511,865,734
Signed for & on behalf of This is the consolidated statement of changes in equity referred to in our separate report of even date
Signed for & on behalf of
ACNABIN
Chartered Accountants Howladar Yunus & Co.

DVC No: 2304270787AS974221 DVC No: 2304270521AS239039
Balance Sheet
31.12.2022 31.12.2021
Particulars Notes
Taka Taka
Property and Assets

Cash in hand 7.0 123,504,792,624 246,163,386,116
Cash in hand (including foreign currency) 7.1 30,645,815,136 22,100,995,009
Balance with Bangladesh Bank & its agent bank(s) (including foreign currency) 7.2 92,858,977,487 224,062,391,107
Balance with other banks & financial institutions 8.0 110,787,004,358 76,156,107,566
In Bangladesh 8.i 86,842,245,128 61,571,659,434
Outside Bangladesh 8.ii 23,944,759,230 14,584,448,132
Placement with banks & other financial institutions 9.0 - -
Investments in shares & securities 10.0 90,454,663,436 94,819,400,466
Government 10.1 72,173,862,507 75,352,686,843
Others 10.2 18,280,800,929 19,466,713,623
Investments 11.0 1,461,365,497,513 1,191,173,000,246

General investments etc. 11.1 1,326,643,607,786 1,137,670,855,057
Bills purchased & discounted 11.2 134,721,889,727 53,502,145,189
Fixed assets including premises 12.0 18,437,320,088 18,378,446,533
Other assets 13.0 33,530,927,106 9,302,458,646
Non - banking assets - -
Total property and assets 1,838,080,205,126 1,635,992,799,574

Liabilities
Placement from banks & other financial institutions 14.0 187,438,369,400 36,765,300,000
Deposits & other accounts 15.0 1,410,445,429,339 1,381,979,529,497
Mudaraba savings deposits 15.1 445,565,352,259 476,757,049,557
Other mudaraba deposits 15.2 288,022,176,295 282,106,861,930
Al- wadeeah current and other deposit accounts 15.3 153,259,252,714 125,924,721,060
Bills payable 15.4 10,288,421,539 8,117,488,474
Mudaraba bond 16.0 31,000,000,000 30,775,840,000
Perpetual bond 16.1 11,000,000,000 10,175,840,000
Redeemable subordinated bond 16.2 20,000,000,000 20,600,000,000
Other liabilities 17.0 139,575,739,102 120,327,845,671
Deferred tax liabilities 18.0 1,458,513,201 1,582,990,129
Total liabilities 1,769,918,051,042 1,571,431,505,297
Capital/ shareholders' equity 68,162,154,084 64,561,294,277

Paid - up capital 19.2 16,099,906,680 16,099,906,680
Other reserves 22.0 28,716,790,478 26,115,930,671
Retained Earnings 40.0 1,609,990,668 1,609,990,668
Total liabilities & shareholders' equity 1,838,080,205,126 1,635,992,799,574

Balance Sheet
31.12.2022 31.12.2021
Particulars Notes
Taka Taka

Acceptances & endorsements - -
Letters of guarantee 23.0 31,062,266,163 29,281,985,371
Irrevocable letters of credit (including back to back bills) 182,573,222,307 190,036,120,488
Bills for collection 54,371,798,351 45,519,344,775
Other contingent liabilities 8,174,045 8,174,045
Total 268,015,460,865 264,845,624,679
Other commitments
Documentary credits, short term and trade related transactions - -
Forward assets purchased and forward deposits placed - -
Undrawn note issuance, revolving and underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
Total - -
Total off-balance sheet items including contingent liabilities 268,015,460,865 264,845,624,679
This is the balance sheet referred to in our separate report of even date


DVC No: 2304270787AS974221 DVC No: 2304270521AS239039

Profit & Loss Account
2022 2021
Particulars Notes
Taka Taka
Operating income
Investment income 24.0 87,984,257,253 73,410,087,847
Profit paid on mudaraba deposits 25.0 (54,077,050,268) (44,930,228,823)
Net investment income 33,907,206,985 28,479,859,024
Income from investments in shares & securities 26.0 2,701,469,616 2,304,788,376
Commission, exchange & brokerage income 27.0 9,397,462,838 7,273,391,872
Other operating income 28.0 6,522,977,186 5,268,738,480
18,621,909,640 14,846,918,728
Total operating income 52,529,116,625 43,326,777,752
Operating expenses
Salary & allowances 29.0 20,253,126,623 17,298,912,375
Rent, taxes, insurances, electricity etc. 30.0 2,135,157,124 1,662,516,208
Legal expenses 31.0 8,480,848 6,606,709
Postage, stamps and telecommunication etc. 32.0 130,172,344 102,411,364
Stationery, printing and advertisement etc. 33.0 298,775,659 243,750,534
Chief executive's salary & fees 34.0 18,069,000 17,380,000
Directors' fees & expenses 35.0 3,587,978 3,723,142
Shari'ah supervisory committee's fees & expenses 36.0 1,713,265 1,311,930
Auditors' fees 37.0 3,450,000 4,025,000
Depreciation and repair to bank's assets 38.0 1,680,741,446 1,634,257,492
Zakat expenses 17.8 970,999,128 894,913,964
Other expenses 39.0 5,777,435,198 4,902,559,344
Total operating expenses 31,281,708,613 26,772,368,061
Profit/ (loss) before provision 21,247,408,011 16,554,409,690
Provision for investments & off- balance sheet exposures 17.1.4 6,364,930,031 5,072,923,726
Provision for diminution in value of investments in shares 17.2 326,256,888 (5,000,000)
Other provisions 17.4 (36,700,445) 45,201,095
Total provision 6,654,486,474 5,113,124,821
Total profit/(loss) before taxes 14,592,921,537 11,441,284,869
Provision for taxation for the period 8,669,475,910 6,802,081,988
Current tax 17.7.1 8,768,960,631 6,800,304,448
Deferred tax expense/(income) 18.0 (99,484,721) 1,777,540
Net profit/(loss) after tax 5,923,445,627 4,639,202,881
Retained earnings from previous year 1,609,990,668 1,609,990,668
Add: Net profit after tax 5,923,445,627 4,639,202,881
Add: Excess depreciation on revalued amount of building transferred from assets revaluation 22.2 85,190,953 87,375,336
reserve to retained earnings
Profit available for appropriation 7,649,078,928 6,439,341,018
Appropriation: 7,649,078,928 6,439,341,018
General reserve 22.1 2,562,688,329 1,948,935,984
Dividend (previous year) 40.0 1,609,990,668 1,609,990,668
Start-up Fund 17.9 59,234,456 46,392,029
Coupon/dividend on perpetual bond 40.0 807,174,807 224,031,669
Retained earnings 40.0 1,609,990,668 1,609,990,668
Earnings per share (EPS) 42.0 3.68 2.88
This is the profit & loss account referred to in our separate report of even date

DVC No: 2304270787AS974221 DVC No: 2304270521AS239039

Cash Flow Statement
2022 2021
Particulars Note
Taka Taka
Investment income 77,340,087,047 67,410,087,847
Profit paid on mudaraba deposits (50,558,936,096) (45,007,135,667)
Income/ dividend receipt from investments in shares & securities 204,440,149 3,165,851,145
Fees & commission receipt in cash 9,397,462,838 7,273,391,872
Recovery from written off investments 244,773,412 93,360,314
Payments to employees (19,998,248,195) (16,968,596,517)
Cash payments to suppliers (445,477,207) (497,081,923)
Income tax paid (6,752,481,846) (7,251,817,078)
Receipts from other operating activities 7,743,934,108 5,817,731,317
Payments for other operating activities (7,987,245,396) (6,667,382,373)
(i) Operating profit before changes in operating assets and liabilities 9,188,308,813 7,368,408,937
Increase/(decrease) of statutory deposits - -
(Increase)/decrease of net trading securities - -
(Increase)/decrease of placement to other banks - -
(Increase)/decrease of investments to customers (270,192,497,267) (155,885,117,913)
(Increase)/decrease of other assets (24,228,468,461) 5,103,703,194
Increase/(decrease) of placement from other banks 150,673,069,400 (7,704,018,312)
Increase/(decrease) of deposits from other banks 5,131,425,754 1,123,022,409
Increase/(decrease) of deposits received from customers 23,334,474,088 201,165,161,203
Increase/(decrease) of other liabilities account of customers - -
Increase/(decrease) of trading liabilities - -
Increase/(decrease) of other liabilities 16,438,211,091 15,509,108,768
(ii) Cash flows from operating assets and liabilities (98,843,785,395) 59,311,859,350
Net cash flows from operating activities (A)=(i+ii) (89,655,476,581) 66,680,268,286
Proceeds from sale of securities/BGIIB/Sukuk 4,364,737,030 (20,711,968,567)
Payment for purchase of securities/BGIIB/Sukuk - -
Placement to Islamic Refinance Fund Account - -
Payment for purchase of securities/membership - -
Purchase/sale of property, plants & equipments (1,379,952,705) (2,031,032,468)
Purchase/sale of subsidiaries - -
Net cash flows from investing activities (B) 2,984,784,325 (22,743,001,035)
Receipts from issue of debt instruments 3,824,160,000 7,175,840,000
Payment for redemption of debt instruments (3,600,000,000) (2,400,000,000)
Receipts from issuing ordinary share/ right share - -
Dividend paid in cash (1,609,990,668) (1,609,990,668)
Net cash flows from financing activities (C) (1,385,830,668) 3,165,849,332
Net increase/(decrease) in cash (A+B+C) (88,056,522,924) 47,103,116,583
Add/(Less): effects of exchange rate changes on cash & cash equivalent 28,826,224 (749,193)
Add: cash & cash equivalents at beginning of the year 322,319,493,681 275,217,126,291
Cash & cash equivalents at the end of the year 45.0 234,291,796,982 322,319,493,681
This is the cash flow statement referred to in our separate report of even date

DVC No: 2304270787AS974221 DVC No: 2304270521AS239039

Statement of Changes in Equity
(Amount in Taka)
General/ Assets Revaluation
Paid-up Share Statutory Retained
Particulars other revaluation reserve of Total
capital premium reserve earnings
reserves(*) reserve securities
1 2 3 4 5 6 7 8 9
Balance as at 01 January 2022 16,099,906,680 1,989,633 20,735,466,258 16,915,694,963 9,071,295,675 126,950,400 1,609,990,668 64,561,294,277
Deferred tax on revaluation surplus - - - - - (6,954,400) - (6,954,400)
Deferred tax impact on excess depreciation - - - - 31,946,607 - - 31,946,607
Depreciation adjustment on revalued fixed assets - - - - (85,190,953) - 85,190,953 -
Surplus/ (deficit) on account of revaluation - - - - - 69,544,000 - 69,544,000
Currency translation differences - - - 28,826,224 - - - 28,826,224
Net gain and losses not recognized in the income statement/Re- - - - - - - 30,451,680 30,451,680
valuation reserve of securities transferred to retained earnings
Net profit for the year - - - - - - 5,923,445,627 5,923,445,627
Transfer to (from) reserve - - 1,000,000,000 2,562,688,329 - - (3,562,688,329) -
Dividend: -
Bonus shares - - - - - - - -
Cash dividend - - - - - (1,609,990,668) (1,609,990,668)
Start-up Fund transferred from retained earnings - - - - - - (59,234,456) (59,234,456)
Coupon/dividend on perpetual bond - - - - - - (807,174,807) (807,174,807)
Total shareholders' equity as on 31 December 2022 16,099,906,680 1,989,633 21,735,466,258 19,507,209,516 9,018,051,329 189,540,000 1,609,990,668 68,162,154,084
Add: Mudaraba redeemable subordinated bond - - - - - - - 20,000,000,000
Add: General provision for unclassified investments and off- - - - 17,806,581,509 - - - 17,806,581,509
balance sheet items (Note-3.14.7)
Less: Year wise redemption - - - - - - - (4,800,000,000)
Adjustment for intangible assets - - - (176,248,635) - - - (176,248,635)
Less: Assets revaluation reserve (Note-3.14.4) - - - - (9,018,051,329) - - (9,018,051,329)
Less: Revaluation reserve of securities (Note-3.14.5) - - - - - (189,540,000) - (189,540,000)
Total equity as on 31 December 2022 16,099,906,680 1,989,633 21,735,466,258 37,091,089,040 - - 1,609,990,668 102,738,442,279
(*)Note : General / other reserves

Particulars 01.01.2022 01.01.2021
General reserve 16,866,067,837 14,917,131,853
Currency translation differences 17,627,126 18,376,319
Total 16,915,694,963 14,967,508,172
ANNUAL REPORT 2022

255
256
ANNUAL REPORT 2022

(Amount in Taka)
Assets Revaluation
Share Statutory General/ other Retained
Particulars Paid-up capital revaluation reserve of Total
Premium reserve reserves earnings
reserve securities
1 2 3 4 5 6 7 8 9
Balance as at 01 January 2021 16,099,906,680 1,989,633 19,735,466,258 14,967,508,172 9,125,905,260 72,115,200 1,609,990,668 61,612,881,871
Deferred tax on revaluation surplus - - - - - (6,092,800) - (6,092,800)
Deferred tax impact on excess depreciation - - - - 32,765,751 - - 32,765,751
Depreciation adjustment on revalued fixed assets - - - - (87,375,336) - 87,375,336 -
Surplus/ (deficit) on account of revaluation - - - - - 60,928,000 - 60,928,000
Currency translation differences - - - (749,193) - - - (749,193)
Net gain and losses not recognized in the income statement - - - - - - - -
Net profit for the year - - - - - - 4,639,202,881 4,639,202,881
Transfer to (from) reserve - - 1,000,000,000 1,948,935,984 - - (2,948,935,984) -
Dividend:
Bonus shares - - - - - - - -
Cash dividend - - - - - (1,609,990,668) (1,609,990,668)
Start-up Fund transferred to retained earnings for adjustment against 2020 - - - - - - 102,772,133 102,772,133
Start-up Fund transferred from retained earnings for 2021 - - - - - - (46,392,029) (46,392,029)
Coupon/dividend on perpetual bond - - - - - - (224,031,669) (224,031,669)
Total shareholders' equity as on 31 December 2021 16,099,906,680 1,989,633 20,735,466,258 16,915,694,963 9,071,295,675 126,950,400 1,609,990,668 64,561,294,277
Add: Mudaraba redeemable subordinated bond - - - - - - - 20,600,000,000
Add: General provision for unclassified investments and off- - - - 16,041,678,293 - - - 16,041,678,293
balance sheet items (Note-3.14.7)
Less: Year wise redemption - - - - - - - (3,600,000,000)
Less: Excess Tier-II Capital - - - - - - - (157,423,443)
Adjustment for intangible assets - - - (216,440,708) - - - (216,440,708)
Less: Assets revaluation reserve (Note-3.14.4) - - - - (9,071,295,675) - - (9,071,295,675)
Less: Revaluation reserve of securities (Note-3.14.5) - - - - - (126,950,400) - (126,950,400)
Total equity as on 31 December 2021 16,099,906,680 1,989,633 20,735,466,258 32,723,305,423 - - 1,609,990,668 98,189,075,219
Signed for & on behalf of This is the statement of changes in equity referred to in our separate report of even date
ACNABIN

DVC No: 2304270787AS974221 DVC No: 2304270521AS239039
Liquidity Statement
Assets & Liabilities Analysis
Amount in taka
Particulars Up to 1 Month 1 - 3 Months 3 - 12 Months 1 - 5 years More than 5 years Total 31.12.2022 Total 31.12.2021
1 2 3 4 5 6 7=(2 + 3 + 4 + 5 + 6) 8
ASSETS
Cash in hand 62,879,006,624 - - - 60,625,786,000 123,504,792,624 246,163,386,116
Balance with other banks & financial institutions (Note-8.2) 89,792,004,358 18,715,000,000 2,280,000,000 - - 110,787,004,358 76,156,107,566
Placement with Banks & other Financial Institutions - - - - - - -
Investments (in shares & securities) (Note-10.4) 2,304,263,436 1,254,000,000 5,784,700,000 4,230,000,000 76,881,700,000 90,454,663,436 94,819,400,466
General investments etc. (Note-11.1.1) 169,223,200,000 114,752,500,000 685,032,007,786 147,170,000,000 210,465,900,000 1,326,643,607,786 1,137,670,855,057
Bills purchased & discounted (Note-11.2.1) 100,152,700,000 15,680,500,000 18,888,689,727 - - 134,721,889,727 53,502,145,189
Fixed assets including premises (land & building), furniture - - 957,842,518 3,051,254,845 14,428,222,725 18,437,320,088 18,378,446,533
and fixtures (Note-12.3)
Other assets (Note-13.1) 1,542,062,878 4,907,594,598 1,775,073,871 25,107,219,479 198,976,280 33,530,927,106 9,302,458,646
Non - banking assets - - - - - - -
Total Assets 425,893,237,296 155,309,594,598 714,718,313,902 179,558,474,324 362,600,585,005 1,838,080,205,126 1,635,992,799,574
LIABILITIES
Placement from banks & other financial institutions 110,814,569,400 45,057,000,000 31,566,800,000 - - 187,438,369,400 36,765,300,000
Deposits (Note-15.5) 273,163,119,835 361,042,600,000 383,267,509,504 308,024,900,000 84,947,300,000 1,410,445,429,339 1,381,979,529,497
Other accounts - - - - - - -
Provision & other liabilities (Note-17.11) 3,140,500,000 5,055,700,000 5,836,500,000 5,397,700,000 120,145,339,102 139,575,739,102 120,327,845,671
Deferred tax liability/(assets) 79,200,000 158,300,000 158,300,000 158,300,000 904,413,201 1,458,513,201 1,582,990,129
Mudaraba perpetual bond - - - - 11,000,000,000 11,000,000,000 10,175,840,000
Mudaraba redeemable subordinated bond - - - 17,000,000,000 3,000,000,000 20,000,000,000 20,600,000,000
Total Liabilities 387,197,389,235 411,313,600,000 420,829,109,504 330,580,900,000 219,997,052,303 1,769,918,051,042 1,571,431,505,297
Net Liquidity Gap 38,695,848,061 (256,004,005,402) 293,889,204,398 (151,022,425,676) 142,603,532,702 68,162,154,084 64,561,294,277
Signed for & on behalf of This is the liquidity statement referred to in our separate report of even date
ACNABIN

DVC No: 2304270787AS974221 DVC No: 2304270521AS239039
ANNUAL REPORT 2022

257
Notes to the financial statements
As at and for the year ended 31 December 2022
1.0 The Bank and its activities

1.1 Introduction
Islami Bank Bangladesh Limited [IBBL] (hereinafter referred to as "the Bank") was established as a public limited banking
company in Bangladesh in 1983 as the first Shari’ah based scheduled commercial bank in the South East Asia. Naturally, its
modus operandi is substantially different from those of other conventional commercial banks. The Bank conducts its business on
the Shari'ah principles of Mudaraba, Musharaka, Bai-Murabaha, Bai-Muajjal, Hire Purchase under Shirkatul Melk, Bai-Salam,
Bai-as-Sarf and Ujarah etc. There is a Shari'ah Supervisory Committee in the Bank which ensures that the activities of the Bank
are being conducted on the precepts of Islam.
The shares of the Bank are listed with both Dhaka Stock Exchange (DSE) Limited and Chittagong Stock Exchange (CSE)
Limited. The Bank carries out its business activities through its Head Office in Dhaka, 16 Zonal Offices, 394 Branches including
73 Authorised Dealer (AD) Branches, 228 Sub Branches, 2694 Agent Banking Outlets and 3 Off-shore Banking Units (OBUs)
in Bangladesh. The Principal place of business is the Registered Office of the Bank situated at Islami Bank Tower, 40, Dilkusha
Commercial Area, Dhaka-1000, Bangladesh. These financial statements as at and for the year ended 31 December 2022 include
the consolidated and separate financial statements of the Bank. The consolidated financial statements comprise the financial
statements of the Bank and its subsidiaries (mentioned in Note - 1.4, together referred to as "the Companies"). The current
number of employees are 20,792 (in 2021 19,193).
1.2 Nature of business/ Principal activities of the Bank
1.2.1 Commercial banking services

All kinds of commercial banking services are provided by the Bank to the customers following the principles of Islamic Shari’ah, the
provisions of the Bank Company Act, 1991 as amended, Bangladesh Bank’s directives and directives of other regulatory authorities.
1.2.2 Islamic micro-finance

Islamic micro-finance represents micro-finance of the Islamic finance industry. Under Islamic micro-finance, major focus is given
on improvement of living standard of poor people. The projects are closely monitored so that the members are really benefited. The
Bank provides this services under the umbrella of Rural Development Scheme (RDS) and Urban Poor Development Scheme (UPDS).
1.2.3 Mobile financial services -"mCash"

The bank has launched mobile financial services on 27 December 2012 under the name "Islami Bank mCash" as per Bangladesh
Bank approval (reference no. DCMPS/PSD/37/(W)/2012-321 dated 14 June 2012). Islami Bank mCash offers different services
through Mobile phone that include deposit and withdrawal of cash money, fund transfer from one account to another, receiving
remittance from abroad, knowing account balance and mini-statement, giving and receiving salary, mobile recharge and payment
of utility bill, merchant bill payment etc.
1.3 Off-shore banking unit (OBU)

Bangladesh Bank has approved the operation of Off-Shore Banking Unit (OBU) of Islami Bank Bangladesh Limited located
at Head Office Complex Branch- Dhaka, Uttara Branch- Dhaka and Agrabad Branch- Chittagong through letter no. BRPD
(P-3)744(111)/2010-1032 dated 28 March, 2010. The Bank commenced the operation of its Off-shore Banking Unit from
08.02.2011 at Head Office Complex Branch, Dhaka, from 27.09.2011 at Agrabad Branch, Chittagong and from 01.06.2015 at
Uttara Branch, Dhaka. Due to having different functional currency (Note 2.4), the operation of OBU has been considered as
"foreign operation" and accordingly relevant financial reporting standards have been applied consistently that mentioned in note
3.15.3. The financial statements of the OBU are included in the separate financial statements of the Bank and eventually in the
consolidated financial statements. The separate financial statements of OBU are shown in the functional currency (i.e. USD) as
well as the presentation currency (i.e. BDT) of the Bank in Annexure - F.
1.4 Subsidiaries of the Bank
1.4.1 Islami Bank Securities Limited (IBSL)

As per Bangladesh Securities and Exchange Commission's (BSEC) Letter No. SEC/Reg/CSE/MB/2009/444 dated 20.12.2009
and approval of Bangladesh Bank through Letter No. BRPD (R-1)717/2010-47 dated 07.02.2010; the Bank established a
subsidiary Company named "Islami Bank Securities Limited" to operate stock broker and stock dealer activities.

The share capital of Islami Bank Securities Ltd. is Tk. 2,700,000,000/- divided into 2,700,000 shares of Tk.1,000/- each out of
which share capital of the bank is Tk.2,699,846,000/- divided into 2,699,846 shares of Tk.1,000/- each which represent 99.995%
of total share of the subsidiary company.
IBSL was incorporated on 22.03.2010 and date of commencement of business was 23.05.2010. Required capital was transferred to
IBSL on 25.05.2010 which is operating business under the license issued by the Bangladesh Securities & Exchange Commission
(BSEC). As a stock broker, IBSL acts as an agent in the purchase and sale of Shari’ah approved listed securities and realizes
commission on transactions in accordance with approved commission schedule.
1.4.2 Islami Bank Capital Management Limited (IBCML)
As per Bangladesh Bank BRPD Circular No. 12 dated 14.10.2009 and approval of Bangladesh Bank through Letter No. BRPD
(R-1)717/2010-47 dated 07.02.2010, the Bank established another subsidiary Company named "Islami Bank Capital Management
Limited" to operate portfolio management, underwriting, issue management etc.
The share capital of Islami Bank Capital Management Ltd. is Tk.300,000,000/- divided into 300,000 shares of Tk.1,000/- each, out
of which share capital of the bank is Tk.299,993,000/- divided into 299,993 shares of Tk.1,000/- each which represent 99.998% of
total share of the subsidiary Company. The company has obtained Merchant Banker Registration Certificate on 31.03.2019 from
Bangladesh Securities & Exchange Commission (BSEC) to operate the activities of Issue Manager/Underwriting/Portfolio manager.
1.4.3 IBBL Exchange Singapore Pte. Ltd.
‘IBBL Exchange Singapore Pte. Ltd.’ has been incorporated in Singapore, as a subsidiary of Islami Bank Bangladesh Limited
for remittance services and things incidental thereto under the Companies Act, CAP. 50 of the Republic of Singapore. Till 31
December 2022, no share capital of the subsidiary has been paid by its parent company i.e. Islami Bank Bangladesh Limited.
The company is going to be closed which is under process. Therefore, the financial statements of IBBL Exchange Singapore Pte.
Ltd. has not been prepared and accordingly not consolidated with that of the parent i.e. the bank.
2.0 Basis of preparation of financial statements
2.1 Reporting framework and compliance thereof
The Bank and its subsidiaries are being operated in strict compliance with the rules of Islamic Shari’ah. The financial statements
(consolidated & separate) have been prepared in accordance with the guidelines of Islamic banking issued by Bangladesh Bank
through BRPD Circular No. 15 dated 09.11.2009 . The Financial Reporting Act 2015 (FRA) was enacted in 2015. Under the FRA,
the Financial Reporting Council (FRC) is formed and it is yet to issue financial reporting standards for public interest entities
such as banks hence International Financial Reporting Standards (IFRS) as approved by the Institute of Chartered Accountants of
Bangladesh (ICAB) are still applicable. Accordingly, the financial statements of the Bank continue to be prepared in accordance
with International Financial Reporting Standards (IFRS) and the requirements of the Bank Company Act 1991 as amended,
the rules and regulations issued by Bangladesh Bank (BB), the Companies Act 1994, the Securities and Exchange Rules, 2020,
Standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), as a member of that
organization. Where the reporting guidelines issued by Bangladesh Bank and Bank Company Act differ with those of IFRS, the
requirements of the Bank Company Act 1991, and provisions and circulars issued by Bangladesh Bank shall prevail. As such
the Bank has departed from those requirements of IFRSs in order to comply with the rules and regulations of Bangladesh Bank
which are disclosed below:
I. Presentation of financial statements
IFRS
As per IAS-1 "Presentation of Financial Statements", financial statements shall comprise statement of financial position, statement of
profit or loss and other comprehensive income, statement of changes in equity, statement of cash flows, notes to the financial statements
comprising summary of accounting policies and other explanatory information and retrospective restatement of items in the earlier
financial statement, where applicable. Furthermore, IAS-1 states that, an entity shall present its current and non-current assets and
liabilities, as separate classifications in its statement of financial position.
Bangladesh Bank
The financial statements and certain disclosures therein are presented in a prescribed format (i.e. balance sheet, profit and loss
account, cash flows statement, statement of changes in equity, liquidity statement) in accordance with the guidelines of the ‘First
Schedule’ (section 38) of the Bank Company Act 1991 as amended and BRPD circular no. 15 dated 09 November, 2009 and
other subsequent guidelines of BB. In the prescribed format of BB there is no component of other comprehensive income and
accordingly the elements of other comprehensive income and the tax thereon (if any) is recognized directly in the statement of
changes in equity. The assets and liabilities are presented in accordance with the prescribed format of BB and accordingly not
classified as current and non-current classification as required by IAS-1.
II. Name of the Components of Financial Statements
IFRS
As per IAS 1, complete set of financial statements consists statement of financial position, statement of profit or loss and other
comprehensive income, statement of changes in equity, statement of cash flows and notes comprising a summary of significant
accounting policies and other explanatory information.

Bangladesh Bank
The forms of financial statements and directives for preparation thereof of the Islamic banking companies in Bangladesh are
guided by BRPD circular no. 15 dated 09 November 2009. BRPD circular no. 15 of Bangladesh Bank states the statement of
financial position as balance sheet and statement of profit or loss and other comprehensive income as profit and loss account.
III. Other Comprehensive Income
IFRS
As per IAS-1 "Other Comprehensive Income (OCI)" is a component of financial statements or the elements of OCI are to be
included in a single Other Comprehensive Income (OCI).
Bangladesh Bank
Bangladesh Bank has issued templates for financial statements which will strictly be followed by all banks. The templates of
financial statements issued by Bangladesh Bank do not include Other Comprehensive Income nor are the elements of Other
Comprehensive Income allowed to be included in a single Other Comprehensive Income (OCI) Statement. As such the Bank
does not prepare the Other Comprehensive Income statement. However, elements of OCI, if any, are shown in the statement of
changes in equity.
IV. Disclosure of Appropriation of Profit
IFRS
IFRS do not require appropriation of profit to be shown on the face of the statement of comprehensive income.
Bangladesh Bank
As per BRPD circular no. 14, dated 25 June 2003 and BRPD circular no. 15 dated 09 November 2009, an appropriation of profit
should be disclosed on the face of Profit and Loss Account.
V. Investments in shares and securities
IFRS
As per requirements of IFRS-9 "Financial Instruments", investment in shares and securities are generally classified either at
fair value through profit or loss or at fair value through other comprehensive income and measured initally at its fair value plus
transaction costs that are directly attributable to the acquisition of the financial asset . However in the case of financial assets
classified and measured at fair value through profit or loss, transactions costs are immediately recognised in profit or loss.
Change in the fair value of shares and securities measured at fair value through profit or loss is recognised in the statement of
profit or loss and changes in the fair value of shares and securities measured at fair value through other comprehensive income
is recognised in the other comprehensive income and are never reclassified to pofit or loss.
Bangladesh Bank
As per BRPD circular no. 14 dated 25 June 2003, investments in shares and securities are classified under held to maturity (HTM)
or held for trading (HFT) and measured at cost. Transaction costs that are directly attributable to the acquisition added to the
initial fair value except for financial assets classified as HFT where they should be recognised in profit or loss.
After initial recognition, HFT govt. securities are measured according to DOS circular no. 05 dated 26 May 2008 and DOS circular
no. 05 dated 28 January 2009, where amortization loss is charged to profit and loss account, mark-to-market loss on revaluation is
charged to profit and loss account, but any unrealized gain on such revaluation is recognized in revaluation reserve account. HTM
govt. securities are measured at amortized cost and increase/decrease related to amortization is recognized in equity.
As per BRPD circular no. 14 dated 25 June 2003 and DOS circular No.4 dated 24 November 2011, investments in quoted and
unquoted shares are revalued at the year-end at market price and at Book Value of last audited balance sheet respectively. As
such, provision is made against the diminution in value of investments considering netting off gain /loss. Investment in mutual
fund (open-end) is revalued at lower of cost and higher of (market value and 95% of NAV) as per instruction of DOS circular
no. 03 dated 12 March 2015 and closed end mutual fund is revalued at lower of cost and higher of (market value and 85% of
NAV) as per DOS circular no. 10 dated 28 June 2015. As such, provision is made for any loss arising from diminution in value
of investments (portfolio basis); otherwise investments are recognized at costs.
VI. Provision for investments
IFRS
As per IFRS 9 an entity shall recognise an impairment allowance on loans and advances based on expected credit losses. At
each reporting date, an entity shall measure the impairment allowance for loans and advances at an amount equal to the lifetime
expected credit losses if the credit risk on these loans and advances has increased significantly since initial recognition. For those
loans and advances for which the credit risk has not been increased significantly since initial recognition, an entity shall measure
the impairment allowance at an amount equal to 12 months expected credit losses.

Bangladesh Bank
As per BRPD Circular no. 14 dated 23 September 2012, BRPD Circular no. 04 dated 29 January 2015, BRPD Circular no. 08 dated
02 August 2015, BRPD Circular No.12, dated 20 August, 2017, BRPD Circular No. 12 dated 20 August, 2017, BRPD Circular No.
01 dated 20 February, 2018, BRPD Circular No. 01 dated 20 February, 2018, BRPD Circular no. 03 dated 21 April 2019, BRPD
Circular no. 16 dated 21 July 2020, BRPD Circular no.51& 53 dated 30 December 2021, BRPD Circular no. 14 dated 22 June
2022, BRPD Circular no. 51 dated 18 December 2022 and BRPD Circular no. 53 dated 22 December 2022 general provision at
0.25% to 2% under different categories of unclassified investments (good/standard investments) has to be maintained regardless
of objective evidence of impairment. Also provision for sub-standard, doubtful and bad & loss investments have to be provided at
20%, 50% and 100% respectively and sub-standard 5%, doubtful 20% and bad &loss 100% for CMSME investment (except short-
term agricultural and micro-credits where 1% for all unclassified investment (irregular & regular) 5% for sub-standard and doubtful
investments and 100% for bad & loss investments) depending on the duration of overdue.
VII. Provision for Off-balance sheet items
IFRS
There is no concept of off-balance sheet items in any IFRS; hence there is no requirement for making provision or disclosure of
off-balance sheet items on the face of the statement of financial position.
Bangladesh Bank
As per BRPD circular No.14 dated 25 June 2003 and BRPD circular no- 15 dated 09 November 2009, off balance sheet items
(e.g. Letter of credit, Letter of guarantee, Bills for collection etc.) must be disclosed separately on the face of the balance sheet.
Furthermore, as per BRPD Circular No.14 dated 23 September 2012, BRPD Circular No.19 dated 27 December 2012, BRPD
Circular No.7 dated 21 June 2018 and BRPD Circular No.13 dated 18 October 2018 a general provision at 1% is required to be
provided for all off-balance sheet exposures except Bills for Collection received by the bank on behalf of its customers and issued
guarantees. Mentionable that Provision against guarantees issued by Bank is to be kept in different rates @ nill, 0.50%, 0.75% &
01% considering the BB rating grade equivelance of the bank providing the counter guarantee.
VIII. Recognition of investment income in suspense
IFRS
Investment to customers (loans and receivables) are generally classified at amortized cost as per IFRS 9 "Financial Instruments"
and investment income is recognised by using the effective interest rate method over the term of the investment. Once an
investment is impaired, the entity shall apply the effective interest rate to the amortised cost of these investments.
Bangladesh Bank
As per BRPD circular no. 14 dated 23 September 2012, once an investment is classified, investment income on such investment
are not allowed to be recognised as income, rather the corresponding amount needs to be credited to an investment income in
suspense account, which is presented as liability in the balance sheet.
IX. Financial instruments – presentation and disclosure
In several cases Bangladesh Bank guidelines categorise, recognise, measure and present financial instruments differently from those
prescribed in IFRS 9. As such full disclosure and presentation requirements of IFRS 7 cannot be made in the financial statements.
X. Financial guarantees
IFRS
As per IFRS-9, financial guarantees are contracts that require an entity to make specified payments to reimburse the holder for
a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument.
Financial guarantee liabilities are recognised initially at their fair value, and the initial fair value is amortised over the life of the
financial guarantee. The financial guarantee liability is subsequently measured at the higher of: the amount of the loss allowance
for expected credit losses as per impairment requirement and the amount initially recognised less, the cumulative amount of
income recognised in accordance with the principles of IFRS 15. Financial guarantees are included within other liabilities.
Bangladesh Bank
As per BRPD 14 dated 25 June 2003 and BRPD 15 dated 09 November 2009, financial guarantees such as letter of credit, letter
of guarantee will be treated as off-balance sheet items.
XI. Cash and Cash Equivalents
IFRS
Cash and Cash Equivalent items should be reported as cash items as per IAS-7 "Statement of Cash Flows".
Bangladesh Bank
Some cash and cash equivalent items such as ‘money at call and on short notice’, Treasury bills, Bangladesh Bank bills and Prize
bond are not shown as cash and cash equivalent. Money at call and on short notice presented on the face of the balance sheet, and
Treasury bills, Prize bonds are shown in investments.

XII. Balance with Bangladesh Bank: (Cash Reserve Requirement)
IFRS
Balance with Bangladesh Bank that are required to be kept as part of cash reserve requirement, should be treated as other asset
as it is not available for use in day to day operations as per IAS-7 "Statement of Cash Flows".
Bangladesh Bank
Balance with Bangladesh Bank is treated as cash and cash equivalents.
XIII. Cash flow statement
IFRS
The Cash flow statement can be prepared using either the direct method or the indirect method. The presentation is selected to present
these cash flows in a manner that is most appropriate for the business or industry. The method selected is applied consistently.
Bangladesh Bank
As per BRPD 14 dated 25 June 2003 and BRPD 15 dated 09 November 2009, cash flow statement is to be prepared following
a mixture of direct and indirect methods.
XIV. Non-banking assets
IFRS
No indication of Non-banking asset is found in any IFRS.
Bangladesh Bank
As per BRPD 14 dated 25 June 2003, BRPD 15 dated 09 November 2009 and BRPD 22 dated 20 September 2021, there must
exist a face item named Non-banking assets.
XV. Presentation of intangible asset
IFRS
An intangible asset must be identified and recognised, and the disclosure must be given as per IAS-38 "Intangible Assets".
Bangladesh Bank
There is no regulation for intangible assets in BRPD 14 dated 25 June 2003 and BRPD 15 dated 09 November 2009.
XVI. Off-balance sheet items
IFRS
As per IFRS, there is no requirement for disclosure of off-balance sheet items on the face of the balance sheet.
Bangladesh Bank
As per BRPD circular no. 14 dated 25 June 2003 and BRPD 15 dated 09 November 2009, off balance sheet items (e.g. Letter of
credit, Letter of guarantee etc.) must be disclosed separately on the face of the balance sheet.
XVII. Investments net off provision
IFRS
Investments should be presented net off provision.
Bangladesh Bank
As per BRPD 14 dated 25 June 2003 and BRPD 15 dated 09 November 2009, provision on investments are presented separately
as liability and can not be netted off against investments.
XVIII. Revenue
As per IFRS 15, revenue should be recognized on accrual basis but due to the unique nature of Islamic Banks, income from
investment under Mudaraba, Musharaka, Bai-Salam, Bai-as-Sarf and Ujarah modes (Khidmah Card) is accounted for on
realization basis as per AAOIFI and Bangladesh Bank guidelines.
XIX. Charges on tax on retained earnings, reserve, surplus as per Income tax ordinance (ITO) 1984
As per section 16(G) of the income tax ordinance 1984, Listed companies should disclose proposed dividend in the balance sheet
as "amount to be distributed as dividend". However there is no provision for this in BRPD 14 dated 25 June 2003 and BRPD 15
dated 09 November 2009 and IFRS also restricts to disclose such presentation in the balance sheet.
2.2 Measurement of elements in the financial statements
Measurement is the process of determining the monetary amounts at which the elements of the financial statements are to be
recognized and carried in the financial statements. The measurement basis adopted by the Bank is historical cost except for land,
building and few of the financial assets which are stated in accordance with the policies mentioned in the respective notes.
2.3 Basis of consolidation
The group financial statements include the financial statements of the Bank and its subsidiaries that it controls. The Bank
prepares consolidated financial statements using uniform accounting policies for similar transactions and other events in similar
circumstances. Consolidation of an investee shall begin from the date the investor obtains control of the investee and cease when
the investor loses control of the investee.

The Bank presents non-controlling interests in the consolidated statement of financial position (Balance Sheet) within equity,
separately from the equity of the owners of the Bank. Changes in the Bank ownership interest in a subsidiary that do not result in
losing control of the subsidiary are equity transactions (i.e. transactions with owners in their capacity as owners).
2.3.1 Consolidation procedures
 combining like items of assets, liabilities, equity, income, expenses and cash flows of the parent with those of its subsidiaries.
 offsetting (eliminating) the carrying amount of the parent’s investment in each subsidiary and the parent’s portion of equity
of each subsidiary.
 eliminate in full intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between
entities of the group (profits or losses resulting from intragroup transactions that are recognised in assets, such as inventory
and fixed assets [property, plant & equipment], are eliminated in full). Intragroup losses may indicate an impairment that
requires recognition in the consolidated financial statements.
2.3.2 Investment in subsidiaries in the Bank separate financial statements
When the Bank prepares separate financial statements, it accounts for investments in subsidiaries at cost.
2.4 Functional and presentation currency

The consolidated and separate financial statements of the Bank are presented in Bangladeshi Taka which is the functional
currency of the Bank and its subsidiaries except for Off-shore Banking Unit (OBU) where the functional currency is US Dollar
(USD). All financial information presented in Taka (BDT) has been rounded to the nearest integer, except otherwise indicated.
2.5 Use of estimates and judgments
The preparation of financial 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, and disclosure requirements
for contingent assets and liabilities during and at the date of the financial statements.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
of accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected .
Information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the
most significant effect on the amounts recognized in the financial statements include depreciation, amortization, impairment, post
employment benefits liabilities, accruals, taxation and provision.
2.6 Comparative information and rearrangement thereof
Comparative figures have been re-arranged wherever considered necessary to ensure better comparability with the current period
without causing any impact on the profit and value of assets and liabilities as reported in the financial statements.
2.7 Going concern
When preparing financial statements, management makes an assessment of the Bank's ability to continue as a going concern. The
Bank prepares financial statements on a going concern basis.
2.8 Accrual basis of accounting
The Bank prepares its financial statements, except for cash flow information, using the accrual basis of accounting. Since the
accrual basis of accounting is used, the Bank recognizes items as assets, liabilities, equity, income and expenses (the elements of
financial statements) when they satisfy the definitions and recognition criteria for those elements in the Framework.
2.9 Materiality and aggregation
The Bank presents separately each material class of similar items. The Bank presents separately items of a dissimilar nature or
function unless they are immaterial. Financial statements result from processing large numbers of transactions or other events
that are aggregated into classes according to their nature or function.
2.10 Offsetting
The Bank does not offset assets and liabilities or income and expenses, unless required or permitted by BB guidelines or IFRS.
2.11 Reporting period
These financial statements of the Bank and its subsidiaries cover one calendar year from 01 January 2022 to 31 December 2022.
2.12 Authorization of the financial statements for issue
The consolidated financial statements and the separate financial statements of the Bank were reviewed by the Audit Committee
of the Board in its 536th meeting on 27 April 2023 and was subsequently authorized for issue by the Board of Directors in its
321st meeting held on the same date.
2.13 Cash flow statement
Cash Flow Statement is prepared in accordance with IAS-7 "Statement of Cash Flows" as well as the guidelines for islamic
banking issued by Bangladesh Bank through BRPD Circular No. 15 dated 09.11.2009 and BRPD Circular No.14 dated
25.06.2003. The Statement shows the structure of changes in cash and cash equivalents during the year.

2.14 Statement of changes in equity
Statement of Changes in Equity has been prepared in accordance with IAS-1 "Presentation of Financial Statements" as well as
the guidelines for islamic banking issued by Bangladesh Bank through BRPD Circular No. 15 dated 09.11.2009 and BRPD
Circular No.14 dated 25.06.2003.
2.15 Liquidity statement
Liquidity Statement has been prepared based on the residual/remaining maturity of assets and liabilities as on 31 December 2022
as per the guidelines for islamic banking issued by Bangladesh Bank through BRPD Circular No. 15 dated 09.11.2009 and BRPD
Circular No.14 dated 25.06.2003 as follows:
i) Balance with other banks and financial institutions, etc. are on the basis of their respective maturity term;
ii) Investments in shares & securities are on the basis of their respective maturity;
iii) General investments are on the basis of their recovery/repayment schedule;
iv) Fixed assets [property, plant & equipment] are on the basis of their useful lives;
v) Other assets are on the basis of their realization/amortization;
vi) Deposits and other accounts are on the basis of their maturity and payments;
vii) Provisions and other liabilities are on the basis of their adjustment/settlement;
viii) Due to perpetual in nature/maturity, Mudaraba Perpetual Bond (MPB) is reported under maturity more than 5 (five) years.
ix) Mudaraba Redeemable Subordinated Bond is reported under maturity within 1 (one) year for Tk. 480 (Four hundred
eighty) crore, 1 (one) to 5 (five) years for Tk. 1,460 (One thousand four hundred and sixty) crore and more than 5 (five)
years for Tk. 60 (sixty) crore.
2.16 Changes in accounting policies
The Bank changes its accounting policy only if the change is required by IFRS or Bangladesh Bank Guidelines or results in the
financial statements providing reliable and more relevant information about the effects of transactions, other events or conditions on
the Bank’s financial position, financial performance or cash flows. Changes in accounting policies is to be made through retrospective
application by adjusting opening balance of each affected components of equity i.e. as if new policy has always been applied.
2.16.1 IFRS-16: Lease

In January 2016, the International Accounting Standards Board (IASB) issued IFRS-16. IFRS-16 replaces IAS-17, IFRIC 4, SIC
15 and SIC 27 which sets out the principles for recognition, measurement, presentation and disclosure of leases which is effective
from annual reporting periods beginning on or after 01 January 2019. IBBL has applied IFRS-16 Leases for the first time
with the date of initial application of 01 January 2019. As IFRS-16 supersedes IAS-17 Lease, the bank has made recognition,
measurement and disclosure in the financial statements-2022 both as Lessee and Lessor as per IFRS-16.
Bank as lessee:
"The bank assesses at initiation of a contract whether the contract is, or contains a lease. That is, if the contract conveys the right to
control the use of an identified asset for a period of time in exchange of consideration, then the bank consider the contract as a
lease contract. The bank as a lessee applies a single recognition and measurement approach for all leases, except for short-term
leases, or, and lease of low value of assets. The bank recognizes lease liabilities to make lease payment and right-of-use assets
representing the right to use the underlying assets. If tenor of a lease contract does not exceed twelve months from the date of
initiation/application, the bank considers the lease period as short term in line with the recognition threshold of ROU assets as
per FA policy of the bank. The Bank determine incremental borrowing rate to calculate the ROU assets and depreciate the asset
over the useful life by straight line method. The right-of-use asset is measured at cost, which is made up of the initial measurement
of the lease liability, any initial direct costs incurred by the Bank, an estimate of any costs to dismantle and remove the asset at
the end of the lease, and any lease payments made in advance of the lease commencement date (net of any incentives received).
Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is premeasured
to reflect any reassessment or modification, or if there are changes in in-substance fixed payments. The Bank has elected to
account for short-term leases and leases of low-value assets using the practical expedients. Instead of recognizing a right-of-
use asset and lease liability, the payments in relation to these are recognized as an expense in profit or loss on a straight-line
basis over the lease term.On the statement of financial position, right-of-use assets have been included in property, plant and
equipment and lease liabilities have been included other liabilities.
Right-of-use assets (ROU):
"The bank recognises the right-of-use (ROU) assets at the commencement date of the lease (i.e. the date the underlying asset is
available for use). ROU assets are measured at cost less any accumulated depreciation and impairment of losses and adjusted for
any measurement of lease liabilities. The cost of ROU assets includes the amount of lease liabilities recognised, initial direct cost
incurred, and lease payment made at or before the commencement date less any lease incentives received. Right-of-use assets
are depreciated on a straight line basis over the lease term, or remaining period of the lease term.
The bank assessed all lease contracts live in 2022 and recognised as ROU of assets of all leases, except short term and low value
of assets as guided by Banks’ own policy set as per IAS-16 and IFRS-16. The ROU assets are presented in the Note 12.1 of these
financial statements. "

Lease Liabilities (Bank as a lessee):
"At the commencement of the lease, the bank recognises lease liabilities measured at the present value of lease payments to be
made over the lease term. The lease payments include fixed and variable lease payment (less any adjustment for initial payment),
and amount is expected to be paid under residual value of guarantees.
In 2022, the bank reassessed all lease payment of existing contracts for remaining period considering a cut-off date i.e. 01
January 2020. The lease liabilities are presented in the Note 17.0 of these financial statements."
Bank as a lessor:
"Leases where the bank does not transfer substantially all of the risk and benefit of ownership of any asset are classified as
operating assets. Rental income is recorded as earned based on the contractual term of the lease. However, the Bank did not hold
any such assets in 2022."
Recognition of consideration made under contract in exchange of use of rental premises/assets:
"As per IFRS 16, when consideration is made by the bank under contract in exchange of use of rental premises or assets for a
period not exceeding a period of twelve months, and or, the present value of the obligation plus initial payment under contract
does not exceed the threshold limit of the bank, and substantially all the risk and benefit of ownership of those rental premises/
assets does not transfer to the bank, then the bank considers the payment (other than advance payment) as rental expense under
IFRS 15 Revenue from contracts with customers. "
Therefore, in 2022, IBBL recognised those payments against contracts that do not qualify as lease item under IFRS-16 as rental
expense which is presented in Note 30.0 of the financial statements for the year ended 31 December 2022.
Particulars Amount in Tk.
Depreciation charge for right-of-use (ROU) assets by class of underlying asset 33,01,84,768
Finance charge on lease liabilities 7,68,77,066
Total cash outflows 32,14,82,274
Carrying amount of right of use assets at the end of the reporting year 1,14,62,24,414
Lease obligation on ROU assets as at end of the reporting year 1,14,98,66,656
2.17 Changes in accounting estimates
Estimates arise because of uncertainties inherent within them, judgment is required but this does not undermine reliability. Effect
of changes of accounting estimates is included in profit or loss account.
2.18 Verification of financial statements through Document Verification System (DVS)
As per BRPD Circular Letter No. 4 dated 04 January 2021, it has been ensured that latest available audited financials are
preserved in the investment file of all our clients. In addition to that as per BRPD Circular Letter No. 35 dated 06 July 2021, we
have been granted access in DVS by The Institute of Chartered Accountants of Bangladesh (ICAB) which we have implemented
verification of financials through DVS 100% for all our clients which are listed with Stock Exchanges. We have also performed
verification of 7% which non listed/not listed with Stock Exchanges.
3.0 Summary of significant accounting policies
Accounting policies are determined by applying the relevant guidelines of Bangladesh Bank as well as the relevant IFRS. Where
there is no available guidelines of BB and IFRS, management uses its judgment in developing and applying an accounting
policy that results in information that is relevant and reliable. The Bank selects and applies its accounting policies for a period
consistently for similar transactions, other events and conditions, unless IFRS or Bangladesh Bank guidelines specifically
requires or permits categorization of items for which different policies may be appropriate. The accounting policies set out
below have been applied consistently in all material respects to all periods presented in these consolidated financial statements:
3.1 Cash and cash equivalents
Cash and cash equivalents include notes and coins in hand and at ATM, balances held with Bangladesh Bank and its agent bank,
balance with other banks and financial institutions which are not ordinarily susceptible to change in value.
3.2 Investment in shares and securities
Investment in shares and securities (other than Investment in Bangladesh Government Islamic Investment Bond) are initially
recognised at cost and subsequently measured and accounted for depending on their classification criteria as either held to maturity
or held for trading. Transaction costs that are directly attributable to the acquisition added to the initial cost except for the investment
classified as held for trading where they should be recognised in profit or loss.
Investment in Bangladesh Government Investment Sukuk is reported at cost price.
Investments in quoted and unquoted shares are revalued at the year-end at market price and at net assets value (NAV) of last
audited balance sheet respectively. As such, provision is made against the diminution in value of investments netting off gain /
loss arises from the market of the securities.

Investment in mutual fund is revalued is mentioned in Note-3.2.3. As such, provision is made for any loss arising from diminution
in value of investments (portfolio basis).
Investment in Government securities (other than investment in Bangladesh Shipping Corporation) are measured both initially
and subsequently at cost as the Bank is not allowed to invest in interest bearing government securities like T-bond, T-bill etc. So
the instructions and circulars related to the recognition and measurement of those instruments are not applicable for the Bank.
Investment in Bangladesh Shipping Corporation was initially recognized at cost. Transaction costs directly attributable to the
acquisition added to the cost. After initial recognition investments are measured at the year end market price and change in the
market price is recognized in equity under the head revaluation surplus.
Investment in subordinated bond is measured both initially and subsequently at cost.
Investment in Mudaraba Perpetual Bond is reported at cost price. As per Bangladesh Bank DOS circular no. 04 dated 24 November
2011, provision for diminution in value of investment in Mudaraba Perpetual Bond was made by netting off unrealised gain/loss
of shares from market price less cost price.
3.2.1 Held to Maturity (HTM)
Investments which are intended to be held till maturity are classified as ‘Held to Maturity’ (HTM). These are measured at
amortized cost at each year end by taking into account any discount or premium on acquisition. Premiums are amortized and
discounts are accredited, using the effective or historical yield. Any increase in value of such investments is booked to equity but
decrease to profit and loss account.
3.2.2 Held for Trading (HFT)
These are investments primarily held for selling or trading. After initial recognition, investments are marked to market and any
decrease in the present value is recognized in the Profit and Loss Account and any increase is booked to Revaluation Reserve
Account through Profit and Loss Account as per DOS Circular no. 05 dated 28 January 2009.
3.2.3 Investment- Initial recognition and subsequent measurement
Initial
Investment class Measurement after initial recognition Recording of Changes
Recognition
Govt. treasury Cost Cost None
securities - BGIIB/Sukuk
Debenture/Bond Cost Cost None
Shares (Quoted) Cost Lower of cost or market value (overall Loss (net off gain) to profit
portfolio) and loss account but no
unrealized gain booking.
Shares (Unquoted) Cost Lower of cost or Net Asset Value (NAV) of Loss to profit and loss account
last audited financial statements but no unrealized gain
booking.
Mutual fund (Open-end) Cost If, average cost price (CP) >NAVCMP * Loss (net) to profit and loss
0.95, then required provision per unit will be account but no unrealized gain
(RP) = CP -NAVCMP * 0.95. booking.
Mutual fund (Close-end) Cost If CP> Market Value (MV) or CP> NAVCMP * Loss (net) to profit and loss
0.85, then required provision (RP) per unit will account but no unrealized gain
be: (i) In case of MV≥ NAVCMP * 0.85, then booking.
RP= CP –MV or (ii) In case of MV< NAVCMP
* 0.85, then RP =CP- NAVCMP * 0.85.
3.3 Investments
Investments are recognized at gross amount on the date on which they are originated. After initial recognition investments are
stated in the Balance Sheet net off profit receivable and unearned income. However, provision for investments are not net-off
with investments.
Profit Receivable – the amount of unexpired portion of profit charged on Bai-Murabaha investment at the time of sale of goods/
services to customer/ client.
Unearned Income - the amount of unrealized portion of profit/ value addition of fixed assets [property, plant & equipment]
under Hire Purchase Under Shirkatul Melk (HPSM) investment for gestation period.
3.4 Fixed assets [Property, plant & equipment and intangibles]
3.4.1 Property, plant and equipment
3.4.1.1 Recognition
The cost of an item of property, plant and equipment is recognized as an asset if, and only if, it is probable that future economic
benefits will flow to the Bank and the cost of the item can be measured reliably.

3.4.1.2 Measurement at recognition
An item of property, plant and equipment that qualifies for recognition as an asset is measured at its cost. The cost of an item
of property, plant and equipment is the cash price equivalent at the recognition date. The cost of a self-constructed asset is
determined using the same principles as for an acquired asset.
3.4.1.3 Elements of costs and subsequent costs
Cost includes purchase price (including import duties and non-refundable purchase taxes), directly attributable costs to bringing
the asset to the location and condition necessary for it to be capable of operating in the manner intended by the management and
the initial estimate of the cost of dismantling and removing the item and restoring the site on which it is located. Costs of day to
day servicing (repairs and maintenance) are recognized as expenditure as incurred. Replacement parts are capitalized, provided
the original cost of the items they replace is derecognized.
3.4.1.4 Measurement of property, plant & equipment after recognition
Cost model
After recognition as an asset, an item of property, plant and equipment shall be carried at its cost less any accumulated depreciation
and any accumulated impairment losses.
Revaluation model
The revaluation model requires an asset, after initial recognition, to be measured at a revalued amount, which is its fair value less
subsequent accumulated depreciation and impairment accumulated losses.
Where an asset’s carrying amount is increased as a result of a revaluation, the increase is recognized in equity under the heading
of revaluation surplus. However, the increase is recognized in profit or loss to the extent that it reverses a revaluation decrease of
the same asset previously recognized in profit or loss.
Where an asset’s carrying amount is decreased as a result of a revaluation, the decrease is recognized in profit or loss. However, the decrease
is recognized in equity to the extent of any credit balance existing in the revaluation surplus in respect of that asset. The decrease recognized
in equity reduces the amount accumulated under the heading of revaluation surplus.
The revaluation surplus included in equity in respect of an item of property, plant and equipment is transferred directly to retained
earnings when the asset is derecognized. However, some of the surplus is transferred as the asset is used by the Bank. In such a
case, the amount of the surplus transferred would be the difference between depreciation based on the revalued carrying amount
of the asset and depreciation based on the asset’s original cost.
3.4.1.5 Derecognition of property, plant and equipment
The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic
benefits are expected from its use or disposal. The gain or loss arising from the derecognition of an item of property, plant and
equipment is included as other income in profit or loss when the item is derecognized.
3.4.1.6 Asset retirement obligations (ARO)
Asset retirement obligations (ARO) are recognized when there is a legal or constructive obligation as a result of past event for
dismantling and removing an item of property, plant and equipment and restoring the site on which the item is located and it is
probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of obligation
can be made. A corresponding amount equivalent to the provision is also recognized as part of the cost of the related property,
plant and equipment. The amount recognized is the estimated cost of decommissioning, discounted to its present value. Changes
in the estimated timing of decommissioning or decommissioning cost estimates are dealt with prospectively by recording an
adjustment to the provision, and a corresponding adjustment to property, plant and equipment. The periodic unwinding of the
discount is recognized in the statement of profit or loss as a finance cost as it occurs.
3.4.1.7 Depreciation
The depreciation charge for each period is recognized in profit or loss unless it is included in the carrying amount of another asset.
Depreciation of an asset begins when it is installed and available for use, i.e. when it is in the location and condition necessary for
it to be capable of operating in the manner intended by management. Depreciation of an asset ceases at the earlier of the date that
the asset is classified as held for sale and the date that the asset is derecognized. The residual value and the useful life of an asset
is reviewed at least at each financial year-end and, if expectations differ from previous estimates, the change(s) shall be accounted
for as a change in an accounting estimate.
Depreciation is calculated based on the cost/revalued amount of items of fixed assets [property, plant & equipment] less their
estimated residual values using either of straight-line method (SLM) or reducing balance method (RBM) over their estimated
useful lives and recognized in profit and loss. Land is not depreciated. Rates of depreciation considering the useful life of
respective assets are as follows:
Items Method Rates
Building Straight-line 2.5% on Book Value
Furniture and fixtures-Steel -Do- 05% on Book Value
Furniture and fixtures-other than Steel -Do- 10% on Book Value
Mechanical appliances -Do- 20% on Book Value
ATM -Do- 10%-25%
Books -Do- 25.00%
Motor vehicles -Do- 16.67% - 20.00% on Original Cost
Computers -Do- 25% on Original Cost

3.4.2 Capital work in progress
Fixed assets that is being under construction/acquisition is accounted for as capital work in progress until construction/acquisition
is completed and measured at cost. The work in progress is transferred to cost of that fixed assets when the construction is
completed and it becomes available for use.
3.4.3 Intangible assets
3.4.3.1 Recognition
The recognition of an item as an intangible asset requires the Bank to demonstrate that the item meets the definition of an
intangible asset and the recognition criteria. An intangible asset is recognized as an asset if, and only if, it is probable that expected
future economic benefits that are attributable to the asset will flow to the Bank and the cost of the item can be measured reliably.
3.4.3.2 Measurement
An intangible asset is measured at cost less any accumulated amortizations and any accumulated impairment losses. Subsequent
expenditures are likely to maintain the expected future economic benefits embodied in an existing intangible asset rather than
meet the definition of an intangible asset and the recognition criteria. Therefore, expenditure incurred after the initial recognition
of an acquired intangible asset or after completion of an internally generated intangible asset is usually recognized in profit or
loss as incurred. The rates used for amortizing intangible assets is 25.00%.
3.4.3.3 Amortization
The depreciable amount of an intangible asset with a finite useful life shall be allocated on a systematic basis over its useful life.
Amortization begin when the asset is available for use, i.e. when it is in the location and condition necessary for it to be capable
of operating in the manner intended by management. Amortization ceases at the earlier of the date that the asset is classified as
held for sale and the date that the asset is derecognized. An intangible asset with an indefinite useful life is not amortized.
3.5 Impairment of Fixed assets [property, plant & equipment and intangibles]
Recognizing and measuring impairment loss
Where the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its
recoverable amount. That reduction is an impairment loss. An impairment loss on a non-revalued asset is recognized in profit
or loss. However, an impairment loss on a revalued asset is recognized directly in equity to the extent that the impairment loss
does not exceed the amount in the revaluation surplus for that same asset. Such an impairment loss on a revalued asset reduces
the revaluation surplus for that asset.
The Bank assesses at the end of each reporting period whether there is any indication that an asset may be impaired. If any
such indication exists, the Bank estimates the recoverable amount of the asset. Irrespective of whether there is any indication
of impairment, the Bank tests an intangible asset with an indefinite useful life or an intangible asset not yet available for use for
impairment annually.
3.6 Other assets
Other assets include all other financial assets, other income receivable, advance against expenses etc.
3.7 Non-banking assets
Non-banking assets are acquired on account of the failure of a client to repay the investment in time after receiving the decree
from the court regarding the right and title of the mortgaged property.
3.8 Placement from banks and other financial institutions
Placement from banks and other financial institutions are stated in the financial statement at principal amount of the outstanding
balance.
3.9 Deposits and other accounts
Deposit and other accounts include Al Wadeeah current deposit as well as savings, term and other Mudaraba deposits. Deposits
by customers and banks are recognized when the Bank enters into contractual agreements with the counterparties. These items
are brought to Financial Statements at the gross value of the outstanding balance.
3.10 Mudaraba Bond
3.10.1 Mudaraba Perpetual Bond
Mudaraba Perpetual Bond (MPB) was issued by the Bank under the mudaraba principles of Islamic Shari’ah as per approval
of Bangladesh Bank Letter No. BRPD (P-1)661/14(a)/2006-1437 dated 07.05.2006 and Bangladesh Securities and Exchange
Commission Letter No. SEC/CI/CPLC-118/2006/385 & SEC/CI/RPO-01/2007/386 both dated 10.06.2007. The Investment
Corporation of Bangladesh (ICB) is the Trustee of the MPB. The MPB is listed with Dhaka Stock Exchange Ltd. & Chittagong
Stock Exchange Ltd. and trading of the same started from 25 November 2007. It is treated as a component of Additional Tier-I
Capital (AT-I). The instrument subordinated to the claims of other creditors and depositors. In the case of liquidation, the
subordinated debtholders would be paid just before paying to the shareholders assuming there are assets to distribute after all
other liabilities and debts have been paid. The Mudaraba Perpetual Bond (MPB) is perpetual in nature i.e. infinite maturity. Profit
paid against Mudaraba Perpetual Bond is the final profit rate of 8 (eight) years Mudaraba Savings Bond and an additional amount
equivalent to 10.00% of the rate of dividend declared for the respective year.

3.10.2 Mudaraba Perpetual Contingent Convertible Bond
IBBL 2nd Perpetual Mudaraba Bond of Tk. 800 crore, BASEL III compliant Perpetual Debt Instrument, was issued as per
approval of Bangladesh Bank letter no. BRPD (BFIS) 661/14B (P)/2021/7134 dated 22 August, 2021 and as per consent of
Bangladesh Securities and Exchange Commission letter no.BSEC/CI/DS-153/2021/508 dated September 05, 2021. Total issue
size Tk. 800 crore, out of which Tk. 717.584 crore was received as subscription in the year 2021 and remaining Tk. 82.416 crore
was received during the year 2022 (Tk. 80 crore through Public Offer and Tk. 720 crore through Private Placement) . The public
offer portion is listed with Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. This bond is Perpetual, Floating rate,
Unsecured, Contingent Convertible on pre-specified trigger point, Coupon/Profit Discretion, Subordinated, Non-Cumulative and
the claims of the bondholders are to be subordinated to the claims of depositors and general creditors of the Bank and the Bank
has full discretion at all times to cancel distributions/payments to the bondholder/ investors subject to common equity holders'
dividend stopper clause.
IBBL 2nd Perpetual Mudaraba Bond was issued for the purpose of augmenting Additional Tier 1 (AT-1) Capital, strengthening
Bank’s capital adequacy and for enhancing its long-term resources in accordance with Bangladesh Bank Guidelines.
Coupon/Profit Rate:
The Rate of return/profit (coupon rate) of this bond is calculated based on the latest available published deposit rate in Bangladesh
Bank website. The average of yearly deposit rate (1 year but < 2 year) of scheduled Islamic banks (1st Generation, 2nd Generation
and 3rd Generation banks only) will be considered, excluding foreign Islamic banks and any Z-category Islamic Banks enlisted
in capital market, for Benchmark Profit Rate fixation plus additional 2.50% per annum. Furthermore, if any Islamic bank goes
into OTC Market/ delisted, that will be excluded from rate of return calculation as well.
3.10.3 Mudaraba Redeemable Subordinated Bonds
Five (05) floating rate Mudaraba Redeemable Unsecured Non-convertible Subordinated 7 years Bonds were issued for inclusion in
Tier 2 Capital of the Bank in pursuance of “Guidelines on Risk Based Capital Adequacy (Revised Regulatory Capital Framework
for banks in line with Basel III)” on Basel III capital regulations issued by Bangladesh Bank vide BRPD Circular No- 18 dated
December 21, 2014. The IBBL Mudaraba Redeemable Non-convertible Subordinated Bond of Tk. 500 crore, IBBL 2nd Mudaraba
Redeemable Non-convertible Subordinated Bond of Tk. 700 crore, 1st Tranche Issue of Tk. 600 crore of IBBL 3rd Mudaraba
Redeemable Non-convertible Subordinated Bond and 2nd Tranche Issue of Tk. 600 crore of IBBL 3rd Mudaraba Redeemable
Non-convertible Subordinated Bond were issued in the year 2017, 2018, 2019 and 2020 respectively covering the criteria for
inclusion of debt instruments in Regulatory Capital (specific eligibility criteria outlined by the Bangladesh Bank for subordinated
debt to qualify as Tier 2 capital). Principal redemption was made Tk. 100 crore for IBBL Mudaraba Redeemable Non-convertible
Subordinated Bond of Tk. 500 crore, Tk.140 crore for IBBL 2nd Mudaraba Redeemable Non-convertible Subordinated Bond of
Tk. 700 crore and by Tk. 120 crore for 1st Tranche Issue of Tk. 600 crore of IBBL 3rd Mudaraba Redeemable Non-convertible
Subordinated Bond during the year 2022. IBBL Fourth Mudaraba Redeemable Non-convertible Subordinated Bond of BDT 8,000
million has been issued on 29 December, 2022 and Tk. 300 crore only has been subscribed by the investors and the remaining
Tk.500 crore will be issued during the year 2023. The claims of the subordinated bondholders are junior to the claims of the
depositors and the other creditors.
3.10.4 Usage of IBBL 2nd Perpetual Mudaraba Bond
The fund raised is not meant for financing any particular project. The Bank utilizes the proceeds of the Issue for its regular
business activities to extend the investment facility to the existing clients and to extend investment facility to the new clients in
different sectors for sustainable business growth.
3.11 Provisions
3.11.1 Provision for investments
Provision for investments is made on the basis of quarter-end review by the management and instructions contained in BRPD
Circular no. 14 dated 23 September 2012, BRPD Circular no. 04 dated 29 January 2015, BRPD Circular no. 08 dated 02 August
2015, BRPD Circular No.12, dated 20 August, 2017, BRPD Circular No. 12 dated 20 August, 2017, BRPD Circular No. 01 dated
20 February, 2018, BRPD Circular No. 01 dated 20 February, 2018, BRPD Circular no. 03 dated 21 April 2019, BRPD Circular
no. 16 dated 21 July 2020, BRPD Circular no.51& 53 dated 30 December 2021, BRPD Circular no. 14 dated 22 June 2022,
BRPD Circular no. 51 dated 18 December 2022 and BRPD Circular no. 53 dated 22 December 2022. Details are given below:
Classification/Percentage (%) of provision requirement
UC SMA SS DF BL UC SMA SS DF BL
Cotteage, Micro,& Small Investments Under CMSME 0.25% 0.25% 5% 20% 100% 0% 0.25% 5% 20% 100%
Medium Enterprise Financing under SMEF 0.25% 0.25% 20% 50% 100% 0.25% 0.25% 20% 50% 100%
Investment for Housing Finance 1% 1% 20% 50% 100% 1% 1% 20% 50% 100%
Investment for Professionals 2% 2% 20% 50% 100% 2% 2% 20% 50% 100%
Consumer
Other than Investment for
2% 2% 20% 50% 100% 2% 2% 20% 50% 100%
Housing Finance & Professionals
All Other (Except Short-term Agricultural and
1% 1% 20% 50% 100% 1% 1% 20% 50% 100%
Micro-Credits)
Short-term Agricultural and Micro-Credits 1% 5% 100% 1% 5% 100%
Investment to Stock Dealers & Stock Broker 2% 20% 50% 100% 2% 20% 50% 100%

3.11.2 Provision for diminution of value of shares and securities
Provision for diminution of value of shares and mutual funds, placed under other liability, has been made on portfolio basis
(gain/loss net off) following DOS circular No. 04 dated 24 November 2011, DOS circular no. 03 dated 12 March 2015 and DOS
circular no. 10 dated 28 June 2015 respectively. Details are stated in Note 17.2 of these financial statements.
3.11.3 Provision for off-balance sheet exposures
In compliance with BRPD circular no. 14 dated 23 September 2012, BRPD Circular No.7 dated 21 June 2018 and BRPD
Circular No.13 dated 18 October 2018 the Bank has been maintaining provision against off-balance sheet exposures (mainly
contingent assets/liabilities) Note-2.1.VII.
3.11.4 Provision for other assets
Provision for other assets is made as per the instructions made in the BRPD circular No. 04 dated 12 April 2022 and other
instructions made by Bangladesh Bank. (Note- 17.3.1).
3.11.5 Provision for nostro accounts
Provision for unsettled transactions in nostro accounts is made as per FEPD circular no. FEPD (FEMO) / 01/2005-677 dated 13
September 2005 of Foreign Exchange Policy Department (FEPD) of Bangladesh Bank. On the reporting date, the Bank has no
unsettled transactions outstanding for more than 3 months and no provision has been made in this regard.
3.11.6 Other provisions, accruals and contingencies
3.11.6.1 Recognition of provisions, accruals and contingencies
A provision is recognized when the Bank has a present obligation (legal or constructive) as a result of a past event; it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation; a reliable estimate can be
made of the amount of the obligation. Accruals are liabilities to pay for goods or services that have been received or supplied but
have not been paid, invoiced or formally agreed with the supplier, including amount due to employees.
Contingent liabilities are not recognized in the financial statements. Disclosure on contingent liabilities has been made on the
face of balance sheet under 'Off-balance Sheet Items' as per BRPD circular No. 14 dated 25 June 2003 and BRPD 15 dated 09
November 2009.
3.11.6.2 Measurement of provision
The amount recognized as a provision is the best estimate of the expenditure required to settle the present obligation at the end
of the reporting period.
3.11.6.3 Changes and uses of provisions
Provisions is reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer
probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is
reversed. A provision is used only for expenditures for which the provision was originally recognized. Only expenditures that
relate to the original provision are set against it. Setting expenditures against a provision that was originally recognized for
another purpose would conceal the impact of two different events.
3.12 Post employment benefits
The Bank provides various long-term and short-term benefits to the employees under different schemes. Details of the benefits
plans are given below:
3.12.1 Defined contribution plan
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions to a separate entity
and has no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plan are
recognized as personnel expense in profit or loss in the periods during which related services are rendered by employees. The
Bank maintains one funded defined contribution plan for its employees - Provident fund.
3.12.1.1 Provident fund
The Provident Fund is for the regular and confirmed employees who works for a minimum period of 5(five) years at the Bank
and it came into force with effect from 1st day of March 1986. The fund receives contributions @ 10% of the basic pay both
from employees and employer.
3.12.2 Defined benefit plans
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Bank’s net obligation in
respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees
have earned in return for their service in the current and prior periods. The Bank has two funded defined benefit plans - Gratuity
fund and Superannuation fund.
3.12.2.1 Gratuity fund
The Gratuity Fund for the regular and confirmed employees of the Bank was established on 01 March 1986. The employees who
served at least 7 (seven) years, served for minimum 12 (twelve) years & served for 20 (twenty) years at the Bank are entitled
to get gratuity equivalent to 1(one) month's basic pay, 1.5 (one and a half) months’ basic pay & entitled to get 2 (two) months’
basic pay respectively for each completed years of service and fraction thereof. Adequate contributions have been made as per
the recommendation of actuarial valuation report during the year.

3.12.2.2 Superannuation fund
The Fund came into force with effect from the 19 June, 2008. It was established for financial help to the members of the Bank
Employees’ Superannuation Fund and their families in case of retirement, death, physical disability of employee while in service
or of any incidence of like nature acceptable to the Board of Trustees and retirement from the service.
3.12.3 Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is
provided. A liability is recognized for the amount expected to be paid if the Companies has a present legal or constructive
obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.
3.12.4 Other employee benefits
Other employee benefits include which are not included in short-term employee benefits, post-employment benefits and other
termination benefits.
3.12.4.1 Benevolent fund
The Benevolent Fund for the regular and confirmed employees of the Bank was established in the year 1986. This Fund is mainly
used for payment of grant to meet some unexpected and specific needs of the staffs of the Bank like accident, clinical treatment,
marriage ceremony of the employees and their dependents, burial expenses of employees' death, scholarship/cash award to the
meritorious students among the children of the Bank’s officers and sub-staff and allow short term quard/ etc.
3.12.5 Workers' Profit Participation Fund (WPPF)
As per Bangladesh Labour Act, 2006 as amended in 2013 all companies fall within the scope of WPPF (which includes Bank)
are required to provide 5% of its profit before charging such expense to their eligible employees within the stipulated time. The
Bank obtained opinion from its legal advisor regarding this issue which stated that the Bank is not required to make provision
for WPPF as the provision of Bangladesh Labour Act 2006 as amended contradicts with that of the Bank Company Act 1991.
As such consistent with widely accepted industry practice as well lawyer opinion the Bank did not make any provision during
the year for WPPF.
3.13 Taxation
The tax expense for the period comprises current tax and deferred tax. Tax is recognized in the income statement, except in the case
it relates to items recognized directly in equity. In this case, the tax is also recognized directly in equity.
3.13.1 Current tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the
reporting date and any adjustment to the tax payable in respect of previous years. Provision for current income tax has been made
on taxable income of the Bank as per following rates:
Type of income 2022 2021
Business income 37.50% 37.50%
Capital gain 10% to 15% 10% to 15%
Other Income (Dividend income) 20.00% 20.00%
3.13.2 Deferred tax

Principle of recognition
Deferred tax is recognized as income or an expense amount within the tax charge, and included in the net profit or loss for the
period. Deferred tax relating to items dealt with directly in equity is recognized directly in equity.
Recognition of taxable temporary difference
A deferred tax liability is recognized for all taxable differences, except to the extent that the deferred tax liability arises from the
initial recognition of goodwill; or the initial recognition of an asset or liability in a transaction which is not a business combination;
and at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).
Recognition of deductible temporary difference
A deferred tax asset is recognized for all deductible temporary differences to the extent that it is probable that taxable profit will
be available against which the deductible temporary difference can be utilized, unless the deferred tax asset arises from the initial
recognition of an asset or liability in a transaction that is not a business combination; and at the time of the transaction, affects
neither accounting profit nor taxable profit (tax loss).
Measurement
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized
or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the
reporting period.
Deferred tax on revaluation
The revaluation does not affect taxable profits in the period of revaluation and consequently, the tax base of the asset is not
adjusted. Hence a temporary difference arises. An upward revaluation will therefore give rise to a deferred tax liability. IBBL
recognizes the underlying revaluation directly in equity, so the deferred tax thereon is also recognized as part of tax relating to
equity. IBBL transfers each year from revaluation surplus to retained earnings an amount equal to the difference between the
depreciation based on the cost of that asset. The amount transferred is net off any related deferred tax.

3.14 Share capital and reserves
3.14.1 Capital
Authorized Capital
Authorized Capital is the maximum amount of share capital that the Bank is authorized to raise as per its Memorandum and
Articles of Association.
Paid-up Capital
Paid-up Capital represents total amount of shareholders’ capital that has been paid in full by the shareholders. Shareholders are
entitled to receive dividend as approved from time to time in the Annual General Meeting.
3.14.2 Share Premium
Share premium arose from sale of some un-subscribed Right Share for the year 1996 at above the par value and can be utilized
as per section 57 of the Company Act, 1994.
3.14.3 Statutory reserve
As per section 24 of the Bank Company Act, 1991 as amended, at least 20% of the net profit before tax is transferred to statutory
reserve each year until the cumulative balance of the reserve equal to the paid-up capital.
3.14.4 Assets revaluation reserve
This represents the difference between the book value and the re-valued amount of premises (Land and Building) of the Bank as
assessed by professional valuers in the year 2000, 2002, 2003, 2004, 2005, 2006, 2009 and 2012 which were reviewed by the then
statutory auditors. To calculate Capital to Risk Weighted Assets Ratio (CRAR), 50% of the same was considered as a component
of supplementary capital as per Bangladesh Bank BRPD Circular No. 24 dated 03 August 2010 up to 2014. However, as per
BRPD circular 18 dated December 21, 2014, the revaluation reserve for Fixed assets [property, plant & equipment]already have
been deducted from Tier-2 capital with a phase in manner from 2015 to 2019.
3.14.5 Revaluation reserve of securities
Investment in shares of Bangladesh Shipping Corporation qualified for Statutory Liquidity Reserve (SLR) as per Bangladesh
Bank Letter No. BCD (P)744(23)(II)/1030 dated 08.11.1983, BRPD Circular No.15 dated 31.10.2005, DOS Circular Letter
No.10 dated 11.09.2006, BRPD Circular No.03 dated 12.03.2008 and DOS Circular Letter No.05 dated 26.05.2008. The shares
have been revalued as on 30.12.2017 on the basis of closing market price of Dhaka Stock Exchange Limited (DSE). The surplus
is credited to Revaluation Reserve on securities account and 50% of the revaluation reserve upto 2014 has been taken as a
component of Supplementary Capital as per Bangladesh Bank BRPD Circular No. 24 dated 03 August 2010 and shown in the
Statement of Changes in Equity as per Bangladesh Bank guidelines up to 2014. As per BRPD circular 18 dated December 21,
2014, the revaluation reserve for securities has been deducted from Tier-2 capital from 2015 to 2019.
3.14.6 Non-controlling interest
Non-controlling interest is the equity in the subsidiaries that is not attributable, directly or indirectly to the parent. The Bank attributes
the profit or loss and each component of equity to the owners of the parent and to the non-controlling interests. When the proportion
of the equity held by non-controlling interests changes, the Bank adjusts the carrying amounts of the controlling and non-controlling
interests to reflect the changes in their relative interests in the subsidiaries.
The Bank presents non-controlling interests in the consolidated statement of financial position (Balance Sheet) within equity,
separately from the equity of the owners of the Bank. Changes in the Bank ownership interest in a subsidiary that do not result in
losing control of the subsidiary are equity transactions (i.e. transactions with owners in their capacity as owners).
3.14.7 Regulatory capital in line with Basel-III
Till December 2014, as per Revised Regulatory Capital Framework in line with Basel III, full amount of general provision
for unclassified investments and off-balance sheet items & Mudaraba Subordinated Bond as capital gone-concern. However,
as per Guidelines on Risk Based Capital Adequacy (Revised Regulatory Capital Framework for Banks in line with Basel-III),
BRPD No.18, dated 21 December 2014, Assets Revaluation Reserve and Revaluation Reserve of Securities has gradually been
deducted in a transitional arrangement starting from January 2015 to December 2019 (20% each year). Accordingly regulatory
capital for the period has been calculated complying with all of these changes as per Revised Regulatory Capital Framework for
Banks in line with Basel-III.
3.15 Foreign currency transactions
3.15.1 Initial recognition
A foreign currency transaction is recorded, on initial recognition in the functional currency, by applying to the foreign currency
amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.
3.15.2 Subsequent measurement
A foreign currency transaction may give rise to assets or liabilities that are denominated in a foreign currency. These assets and
liabilities is translated into the Bank's functional currency at each reporting date. However, translation depends on whether the
assets or liabilities are monetary or non-monetary items:

Monetary items
Foreign currency monetary items outstanding at the end of the reporting date are translated using the closing rate. The difference
between this amount and the previous carrying amount in functional currency is an exchange gain or loss. Exchange differences
arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were
translated on initial recognition during the period or in previous financial statements is recognized in profit or loss in the period
in which they arise.
Non-monetary items
Non-monetary items carried at historic cost are translated using the exchange rate at the date of the transaction when the asset
arose (historical rate). They are not subsequently retranslated in the individual financial statements of the Bank. Non-monetary
items carried at fair value are translated using the exchange rate at the date when the fair value was determined.
When a gain or loss on a non-monetary item is recognized in equity, any exchange component of that gain or loss is recognized
in equity. Conversely, when a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of
that gain or loss is recognized in profit or loss.
3.15.3 Translation of foreign currency financial statement
The assets and liabilities of foreign operations (Note- 1.3) are translated into presentation currency in the current statement of
financial position using the closing rate at the reporting date. The income and expenses of foreign operations are translated at
spot exchange rates at the date of transactions as long as practicable; otherwise average rate of exchange has been used. Foreign
currency differences arising on translation are recognized in equity under the head translation reserve.
3.16 Income
3.16.1 Investment income
Income from general investments is accounted for on accrual basis except for investments under Musharaka, Mudaraba, Bai-
Salam, Bai-as-Sarf and Ujarah (Khidmah Card) modes of Investment where the investment income is accounted for on realization
basis. The Bank does not charge any rent during the gestation period of investment against Hire Purchase under Shirkatul Melk
(HPSM) mode of investment but it fixes the sale price of the assets at a higher level in such a way to cover its expected rate of
return. Such income is recognized on realization basis.
Profit/Rent/Compensation accrued on classified investments are suspended and accounted for as per circulars issued by
Bangladesh Bank in this regard from time to time. At the time of recovery or regularization of those investments the related
income which was suspended and shown as a liability is taken as investment income (except compensation) as per circulars
issued by Bangladesh Bank. As a result, all the transferred amount to investment income from suspense during the year has
already been included in the investment income of the Bank.
Profit on deposits with other banks & financial institutions is accounted for on accrual basis.
3.16.2 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 the Bank and the Mudaraba depositors at the pre-agreed ratio.
3.16.3 Income from investment in Bangladesh Government Islamic Investment Bond (BGIIB)
Profit from investment in Bangladesh Government Islamic Investment Bond (BGIIB) is accounted for on an accrual basis.
3.16.4 Income from investment in subordinated bond
Profit from investment in subordinated bond is accounted for on an accrual basis.
3.16.5 Fees, commission and exchange income
Fees, commission and exchange income on services provided by the Bank are recognized as and when the related services
are rendered. Commission charged to customers on letter of credit and letter of guarantee are credited to Income at the time of
effecting the transactions.
3.16.6 Dividend income
Dividend income from investments is accounted for when the right to receive income is established.
3.17 Expenses
3.17.1 Management and other expenses
Expenses incurred by the Bank are recognized on an accrual basis.
3.17.2 Profit paid on deposits
As per agreement between the Mudaraba depositors and the Bank in line with Mudaraba Principle, the Mudaraba depositors are
entitled to get minimum 65% of the investment income earned through deployment of Mudaraba Fund as per weightage assigned to
each type of Mudaraba deposit. In the year 2022, the Bank paid 65% of Investment Income earned through deployment of Mudaraba
Fund. Mudaraba Depositors do not share any income derived from various banking services where their 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. Profit is paid/provided to Mudaraba Deposit accounts at provisional rate on half-yearly/yearly/anniversary basis considering
overall projected growth, performance and profitability of the Bank during the year. Final Rates of profit of any accounting year are
declared after finalization of Shari’ah Inspection report and certifying the Investment Income of the Bank by the statutory auditors.

3.17.3 Zakat
Zakat is paid by the Bank at the rate of 2.58% (instead of 2.50% as the Bank maintains its financial statements following
Gregorian Year) and calculated on the closing balances of Share Premium, Statutory Reserve, General Reserve and Dividend
Equalization Accounts. Zakat is charged in the Profit & Loss Account of the Bank as per “Guidelines for Islamic Banking” issued
by Bangladesh Bank through BRPD Circular No. 15 dated 09.11.2009. Zakat on Paid up Capital and Deposits is not paid by the
Bank, since it is the responsibility of the Shareholders and Depositors respectively.
3.18 Dividend payments
Final dividend is recognized when it is approved by the shareholders in Annual General Meeting (AGM). The proposed dividend
for the year 2022, therefore, has not been recognized as a liability however disclosed in the balance sheet in accordance with IAS-
10 "Events after the Reporting Period". Dividend payable to the Bank’s shareholders is recognized as a liability and deducted
from the shareholders’ equity in the period in which the shareholders’ right to receive the dividend is established.
3.19 Revenue, gains, expenses & losses prohibited by Shari’ah
Income (doubtful, compensation & other earnings) which is prohibited by shari'ah are not being included in the distributable
income of the Bank.
3.19.1 Doubtful income
Doubtful income which is prohibited by Shari'ah due to lapses in compliance of Shari'ah principles for investment as per Shari’ah
Supervisory Committee report is included in the investment income of the Bank and appropriate amount of corporate tax is
provided on it accordingly on these whole amount whether realized or not. It is not distributed to either depositors or shareholders
of the Bank rather the amount net off corporate tax is transferred to an account titled "Doubtful income account' under other
liabilities of the Bank (Note-17.3.2). Only realized amount of doubtful income (on which corporate tax has already been paid due
to inclusion in investment income) is then expended for charitable purposes.
From the year 2014, the Bank has decided to introduce a separate account for doubtful income after providing corporate income
tax. Accordingly, net off corporate tax amount of doubtful income has been transferred to "doubtful income account" as a charge
in profit & loss account under other provisions (Note 17.3.2).
3.19.2 Compensation
Bank charges compensation on overdue investments under Bai-modes. The amount of compensation is not included in investment
income rather kept separately under other liabilities (Note-17.5) titled as " compensation account"Applicable tax on the amount
is provided/paid from those account. Realized amount of compensation on which corporate tax has already been provided are
expended for charitable purposes.
3.19.3 Other earnings
Interest received from the balances held with foreign banks and from foreign currency clearing account with Bangladesh Bank
are not credited to income, since it is not permissible as per Shari’ah. These are expended for charitable purposes after payment
of corporate income tax thereon.
3.20 Inter-branch transactions
Transactions with regard to inter-branches and units are reconciled regularly and efforts are taken to minimize the unreconciled
entries at the end of the year.
3.21 Earnings per share (EPS)
Measurement
Basic EPS
The Bank calculates basic earnings per share amounts for profit or loss attributable to ordinary equity holders of the parent entity.
Basic earnings per share is calculated by dividing profit or loss attributable to ordinary equity holders of the parent entity (the
numerator) by the weighted average number of ordinary shares outstanding (the denominator) during the period.
Diluted EPS
The Bank calculates diluted earnings per share amounts for profit or loss attributable to ordinary equity holders of the parent
entity. For the purpose of calculating diluted earnings per share, the Bank adjusts profit or loss attributable to ordinary equity
holders of the parent entity, and the weighted average number of shares outstanding, for the effects of all dilutive potential
ordinary shares. Dilution of EPS is not applicable for these financial statements as there was no dilutive potential ordinary shares
during the relevant periods. Hence no Diluted EPS has been calculated. Consolidated basic EPS has also been calculated and
presented in the same manner.
Presentation
The Bank presents basic and diluted earnings per share in the statement of profit or loss. The Bank presents basic and diluted
earnings per share with equal prominence for all periods presented. The Bank presents basic and diluted earnings per share, even
if the amounts are negative (i.e. a loss per share).
3.22 Segment reporting
As per IFRS 8 An operating segment is a component of the Bank that engages in business activities from which it may earn
revenues and incur expenses and whose operating results are regularly reviewed by the Bank's chief operating decision maker
to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial
information is available. The Bank reports separately information about each operating segment that has been identified as an
operating segment and exceeds the quantitative thresholds.

Quantitative thresholds
The Bank reports separately information about an operating segment that meets any of the following quantitative thresholds:
- Its reported revenue, including both external customers and inter segment , is 10 percent or more of the combined revenue,
internal and external, of all operating segments.
- The absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount, of (i) the combined
reported profit of all operating segments that did not report a loss and (ii) the combined reported loss of all operating segments
that reported a loss.
- Its assets are 10 percent or more of the combined assets of all operating segments.
Operating segments that do not meet any of the quantitative thresholds may be considered reportable, and separately disclosed, if
Management believes that information about the segment would be useful to users of the financial statements.
3.23 Events after the reporting period
All material events after the reporting period that provide additional information about the Companies'/Bank's position at the
balance sheet date are reflected in the financial statements as per IAS-10 "Events after the Reporting Period". Events after the
reporting period that are not adjusting events are disclosed in the notes when material (Note - 41.0).
All other material events after the reporting period have been considered and appropriate adjustments/disclosures have been
made in the financial statements as per IAS-10 "Events after the reporting period".
Board's recommendation for dividend distribution is a common item presented in the (Note-41.0).
3.24 Risk management

"The Bank Company Act, 1991 as amended 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.
Department of Off-site Supervision (DOS) of Bangladesh Bank issued Circular No.-02 dated 15 February 2012 on Risk
Management Guidelines for Banks and instructed all scheduled banks operating in Bangladesh to follow this Guidelines for
managing various risks which have been complied by the Bank.
In addition, the Bank is also following relevant Bangladesh Bank guidelines on risk based capital adequacy, supervisory review
process, stress testing and managing the banking risks in other core risk areas."
The risk of a bank is defined as the possibility of losses, financial or otherwise. The Risk Management of the Bank
covers 6 (six) Core Risk Areas of Banking industry i.e. Investment (Credit) Risk , Foreign Exchange Risk, Asset-
Liability Management Risk, Prevention of Money Laundering Risk, Internal Control & Compliance Risk and
Information & Communication Technology Risk. The risk management procedures in the core risk areas have been
devised in line with the core risk management guidelines of Bangladesh Bank. All the Risk Management Guidelines
are periodically reviewed by the Bank and Bangladesh Bank periodically inspects the implementation status of these
guidelines and as per the reports of Bangladesh Bank, the Bank is well compliant in Core Risk Management activities.
In line with instruction of Bangladesh Bank, the Bank formed a Risk Management Wing (RMW) to formulate risk assessment
and management policies, methodologies, guidelines and procedures for risk identification, risk measurement, risk monitoring,
deciding acceptable level of risk and risk controlling. Risk management function involves identification, assessing, taking
mitigating steps, preparing Risk Management Paper (RMP), conducting monthly risk management meeting, stress testing and
reporting the competent authority from time to time. It also reports to Bangladesh Bank on quarterly basis along with the RMP,
minutes of the monthly meeting and all other required supporting papers. Moreover, in compliance with the “Bank Company
Act 1991 as amended”, Section 15 (Kha) and BRPD Circular No. 11 dated 27 October, 2013 of Bangladesh Bank, the Bank
has constituted a Risk Management Committee comprising of 5 (five) directors from the Board to formulate risk management
policies, procedures and oversee the risk management activities of the Bank.
The prime objective of the Risk Management is that the Bank takes well calculative Business Risk Policy for safeguarding
the Bank’s capital, its financial resources and profitability from various risks. In this context, the Bank implemented all the
guidelines of Bangladesh Bank as under:
3.24.1 Internal Control and Compliance
Operational loss may arise from errors and fraud due to lack of internal control and compliance. With a view to overcome such
lapses and verification of asset quality, ensure quality of customer service, overall security arrangement, operational efficiency
and compliance of regulatory issues as guided through different circulars, manuals from Head Office and other regulatory bodies.
Bank organizes its management through Internal Control & Compliance Wing (ICCW) which consists of three Divisions namely
(I) Audit & Inspection Division, (II) Compliance Division and (III) Monitoring Division.

I. Audit & Inspection Division
Internal Audit & Inspection Division undertakes periodical and special audit of Branches, Divisions and Departments of Head
Office of the Bank, its subsidiaries and Foundation to review operational effectiveness and internal & external compliance
requirements. The Bank has introduced Risk Based Internal Audit of the branches. The Audit Committee of the Board
subsequently reviews the lapses identified by Audit and Inspection Division. The Audit Committee also reviews Bangladesh
Bank Inspection Reports and other issues indicated in the guidelines prescribed by Bangladesh Bank. Necessary steps/measures
are taken on the basis of observations & suggestions of the Committee.
The Audit & Inspection Division conducts investigations against complaints received from customers, anonymous persons,
management & others and submits the reports to the competent authority. Periodical Inspection reports of Zonal Heads, Shari’ah
Inspections & Branch Manager’s self Audit are also reviewed by the Division regularly and necessary guidance and suggestions
are given with continuous follow-up there against.
II. Compliance Division
The Compliance Division handles the ‘regulatory issues of Bangladesh Bank as well as other regulatory bodies’ and submits
‘status report on regulatory compliance’ quarterly to the Audit Committee as per BRPD Circular No.12 dated 23.12.2002.
The Compliance Division ensures that the Bank complies with all regulatory requirements while conducting its day to day
business. The Compliance Division maintains liaison with the regulatory bodies for any regulatory changes and notify the same
to all concerned.
III. Monitoring Division
This Division performs the following:
i) Assesses the risk of the functional areas of the Branches described in the Departmental Control Function Checklist (DCFCL)
and determines the frequency of Audit/Inspection under risk based approach of the branches based on the gravity of risks involved.
ii) Monitors the Internal Control Functions through the Quarterly Operations Report (QOR) and other mechanisms.
iii) Checks the completion/execution of Investment Documentation.
3.24.2 Foreign Exchange Risk Management
Foreign Exchange Risk is the current or prospective risk to earnings and capital arising from adverse movements in currency
exchange rates. The Bank is exposed to profit rate risk and settlement risk on account of its foreign exchange business. Foreign
Exchange business includes trading of foreign currencies relating to import, export, remittances and other ancillary services. The
Bank is dealing with a substantial volume of foreign trade and remittance business of the country which exposes the Bank to foreign
exchange risk. The Bank has adopted foreign exchange risk manual through which the foreign exchange operations are dealt with.
Foreign Exchange risks are measured and monitored by the Treasury Division. Treasury Division consists of separate Front Office,
Back Office and Mid Office. The Treasury Front Office (Dealing Room) independently performs the deals and the Treasury Back Office
is responsible for verification of the deals and passing of their entries in the books of account.
The Foreign Exchange Risk is minimized through proper market analysis, real time pricing of Foreign Exchange, fixation of
different market related limits (daylight, overnight, stop loss and management action trigger) and counter parties credit limits
set by the management and ensure adherence to the limits by the Treasury Front Office. All Foreign Exchange transactions are
revalued at weighted average exchange rate as provided by Bangladesh Bank at the end of each month. All Nostro Accounts are
reconciled regularly and outstanding entries are reviewed by the management for its settlement/recompilation. The open position
maintained by the Bank at the end of the day remains within the stipulated limit prescribed by the Bangladesh Bank.
3.24.3 Investment (Credit) Risk Management
Investment (Credit) risk is one of the major risks faced by the Bank. This can be described as potential loss arising from the failure
of counter party to perform as per contractual agreement with the Bank. The failure may result from unwillingness or inability of
the counter party in discharging his / her financial obligation. Therefore, Bank’s Investment (Credit) Risk Management activities
have been designed to address all these issues. The Bank has designed its own operational manuals for each modes and products.
It has also designed its own investment risk management guideline which is compatible with the regulatory guideline and
Islamic modes of finance. There is a dedicated committee namely "Investment Risk Management Committee" which periodically
reviews the operational manuals and risk management guidelines and ensures compliance of the same.
3.24.4 Asset Liability Management
The Asset Liability Committee (ALCO) of the Bank monitors balance sheet risk, liquidity risks, investment deposit ratio (IDR),
deposit mix, investment mix, gap analysis etc. under the leadership of MD & CEO of the Bank. Asset Liability Committee
(ALCO) reviews liquidity requirement of the Bank, the maturity of assets and liabilities, deposit and investment pricing strategy,
sensitivity of assets and liabilities, management indicators/ratios and the liquidity contingency plan. The primary objective of the
ALCO is Liquidity management, Fund management and Assets-Liabilities matching. The committee also monitors and averts
significant volatility in Net Investment Income (NII), investment value and exchange earnings.

3.24.5 Prevention of Money Laundering
Money Laundering risk is defined as the loss of reputation and expenses incurred as penalty for being negligent in prevention of
money laundering. For mitigating the risks, Islami Bank Bangladesh Limited has formed 10 (ten) members Central Compliance
Committee (CCC) under the leadership of a senior Deputy Managing Director of the Bank as the Chief Anti Money Laundering
Compliance Officer (CAMLCO) at Head Office. Apart from that, Branch Compliance Units (BCU) and Zone Compliance Units
(ZCU) are also functioning under the leadership of Branch Anti Money Laundering Compliance Officer (BAMLCO) at branch
level and Zone Anti Money Laundering Compliance Officer (ZAMLCO) at Zonal Offices.
The Bank has introduced a comprehensive AML Policy namely "POLICY AND GUIDELINES FOR PREVENTION OF MONEY
LUANDERING AND TERRORIST FINANCING RISK MANAGEMENT" under the light of local Laws, Rules & Regulations as
well as international best AML practices duly approved by the Board of Directors, IBBL.
As per approved Policy, IBBL has been conducting many time-befitting programs to prevent Money Laundering & Terrorist
Financing which include among others (a) Central Customer On-boarding, (b) Electronic Know Your Customer (e-KYC), (c)
KYC Remediation including all Legacy Accounts, (d) Automated Transaction Monitoring and filing of Suspicious Transaction
Report (STR)/Suspicious Activity Report (SAR) to Bangladesh Financial Intelligence Unit (BFIU), (e) Electronic Record
Keeping, (f) Building of employee awareness and skill on prevention of Money Laundering & Terrorist Financing round the
year through training-seminar-symposium, workshop held both home and abroad, (g) Maintaining Self-Assessment Report by
every branch, (h) Conducting Independent Testing by the Internal Auditors of the Bank to assess the correctness and accuracy of
the activities of the branches on AML & CFT as instructed by BFIU, the local AML & CFT regulator of Bangladesh and so on.
3.24.6 Information and Communication Technology Risk Management
The Bank has adequately addressed Information and Communication Technology (ICT) Risk Management. It is an in-depth
exercise and continual process. The ICT Risk Management exercise mainly includes minimizing financial and image loss to the
institution in all events such as natural disasters, technological failures, human errors etc. The Bank uses own developed Core
Banking Software to perform all types of transactions including local/ online/ internet in a secured way. To take care of its core
banking system, a separate security module has been incorporated in the software which manages different roles/privileges for
different users. All financial transactions can be tracked for future audit purposes.
The Bank uses Central Data Centre to replicate transactions in branches in case of data failure or inconsistencies. Data travelling
through network uses encryption and decryption mechanism.
In line with the Bangladesh Bank directives, the Bank has approved its own ICT policies for its operations and services. Under
these policy guidelines, a security policy has also been worked out. To abide by and adhere to what is laid down in the policy; the
implementation has been made through Active Directory Services (ADS), Password Policy, Kerberos Policy, Audit Policy, Group
Policy, User Rights, Permission Policy etc. In order to secure network resources from public network, the Bank has introduced
Virtual Private Network (VPN), Access Control List (ACL), IP filtering and TCP/UDP service blocking through router and
firewall devices. It has already centralized the administrative control to access the network, mailing system and internet. The Bank
has introduced Business Continuity Plan (BCP) for its entire network and trained the officials to cope up with any contingencies.
3.24.7 Internal audit
Internal Audit is used as an important element to ensure good governance of the Bank. Internal Audit activity of the Bank is
effective and it provides senior management with a number of important services. These include detecting and preventing fraud,
testing internal control, and monitoring compliance with own policies & procedures, applicable rules & regulations, instructions/
guidelines of regulatory authority etc.
During the year 2022, Audit & inspection Division of Internal Control & Compliance Wing conducted inspection on all of
the Branches/ Divisions of Head Office of the Bank and submitted reports presenting the findings of the audits/ inspections.
Necessary control measures and corrective actions have been taken on the suggestions or observations made in these reports. The
reports or key points of the reports have also been discussed in the meetings of the Audit Committee of the Board and necessary
steps have been taken according to the decision of the said Committee for correct functioning of Internal Controls & Compliance.
3.24.8 Fraud and forgeries

Fraud means willful or criminal deception intended to result in financial or personal gain. It will never be possible to eliminate
all fraud and no system is completely fraud proof, since many fraudsters are able to bypass control systems put in place. The
Bank continuously pays attention to implement and improve the anti-fraud internal controls for prevention of fraud and forgery.
The Bank assesses /evaluates the effectiveness of its Anti-Fraud Internal Control measures on quarterly basis as per the items/
areas mentioned in the prescribed checklist of Bangladesh Bank. During the year 2022, no fraud has been detected by the Bank.
3.25 Credit rating report
Emerging Credit Rating Limited (ECRL) was engaged by the Bank for the purpose of rating the Bank since 2022 as per
Bangladesh Bank BRPD Circular No.06 dated 5 July 2006. ECRL assigned AAA (Triple A) rating in the long term (indicates
exceptionally strong capacity) and ST-1 in the short term (highest certainty of timely repayment) to the Bank based on the
financials up to 31 December 2021.

3.26 Impact on COVID-19
On 11 March 2020, World Health Organization (WHO) declared a global pandemic due to Corona Virus related respiratory
disease commonly called as COVID-19. To contain the spread of this disease, along with many other countries of the world,
Government of Bangladesh has also taken a number of measures such as declaration of general holiday, enforcement of lock
down, social distancing etc. While the overall effect of COVID-19 global pandemic on Bank's business in the post years is still
evolving at this point, there has been limited impact assessed on the business since the outbreak. The board and management are
regularly monitoring the potential impact of the pandemic on the Bank as the situation continues to deteriorate but are assured
that any foreseeable adverse impact can be reasonably managed.
The management of the Bank assessed the going concern and found no uncertainty regarding this for the foreseeable future due
to COVID-19. The global economy including Bangladesh has been seriously affected since March 2020 due to the outbreak of
COVID-19 that has caused disruption in Export and Import business.
3.27 Regulatory and legal compliance

Among others, the Bank complied with the requirements of the following circular, rules and regulations:
a) The Bank Companies Act, 1991 as amended
b) The Companies Act, 1994
c) BRPD Circular No. 14 dated 25.06.2003 and “Guidelines for Islamic Banking” issued by Bangladesh Bank through BRPD
Circular No. 15 dated 09.11.2009
d) Other circulars, rules and regulations issued by Bangladesh Bank from time to time
e) The Securities and Exchange Rules, 2020
f) The Securities and Exchange Ordinance, 1969
g) The Securities and Exchange Commission Act, 1993
h) Income Tax Ordinance, 1984 and Income Tax Rule, 1984 as amended
i) Value Added Tax and Supplementary Duty Act, 2012 as well as Value Added Tax and Supplementary Duty Rule, 2012
j) Standards issued by AAOIFI
k) The Stamp Act-1899
l) The Customs Act-1969
m) The Money Laundering Prevention Act, 2012
n) The Anti Terrorism (Amendment) Act, 2009 etc.
4.0 Compliance with Financial Reporting Standards as applicable in Bangladesh

The Companies/Bank complied, as per Para 12 of Securities & Exchange Rule 1987, with the following International Financial
Reporting Standards (IFRSs) and International Accounting Standards (IASs) as adopted by The Institute of Chartered Accountants
of Bangladesh (ICAB) in preparing the financial statements of the Bank subject to departure described in note - 2.1, where we
have followed Bangladesh Bank guidelines:

Sl. No. IFRS No. IFRS Title Compliance Status
1 1 First-time adoption of International Financial Reporting Standards Not Applicable
2 2 Share-based Payment Not Applicable
3 3 Business Combinations Not Applicable
4 4 Insurance Contracts Not Applicable
5 5 Non-current Assets Held for Sale and Discontinued Operations Not Applicable
6 6 Exploration for and Evaluation of Mineral Resources Not Applicable
7 7 Financial Instruments: Disclosures * Complied
8 8 Operating Segments Complied
9 9 Financial Instruments * Complied
10 10 Consolidated Financial Statements Complied
11 11 Joint Arrangements Not Applicable
12 12 Disclosure of Interests in other Entities Complied
13 13 Fair Value Measurement Complied
14 14 Regulatory deferral accounts Not Applicable
15 15 Revenue from contracts with customers Complied
16 16 Lease Complied
Sl. No. IAS No. IAS Title Compliance Status

1 1 Presentation of Financial Statements Complied
2 2 Inventories Not Applicable
3 7 Statement of Cash Flows * Complied
4 8 Accounting Policies, Changes in Accounting Estimates and Errors Complied
5 10 Events after the Reporting Period Complied
6 12 Income Taxes Complied
7 16 Property, Plant & Equipment Complied
8 19 Employee Benefits Complied
9 20 Accounting for Government Grants and Disclosure of Government Assistance Not Applicable
10 21 The Effects of Changes in Foreign Exchange Rates Complied
11 23 Borrowing Costs Not Applicable
12 24 Related Party Disclosures Complied
13 26 Accounting and Reporting by Retirement Benefit Plans Not Applicable
14 27 Separate Financial Statements Complied
15 28 Investments in Associates and Joint Ventures Not Applicable
16 29 Financial Reporting in Hyperinflationary Economics Not Applicable
17 32 Financial Instruments: Presentation Complied
18 33 Earnings Per Share Complied
19 34 Interim Financial Reporting ** Complied
20 36 Impairment of Assets Complied
21 37 Provisions, Contingent Liabilities and Contingent Assets Complied
22 38 Intangible Assets Complied
23 40 Investment Property Not Applicable
24 41 Agriculture Not Applicable
(*) Subject to departure disclosure in Note no. 2.1
(**) Complied while the quarterly and half-yearly interim financial reports were prepared during the year as per regulations of
Bangladesh Securities and Exchange Commission (BSEC).

5.0 Audit committee
The Audit Committee of the Board was duly formed by the Board of Directors of the Bank in accordance with BRPD circular No.11,
dated 27 October 2013 of Bangladesh Bank. Pursuant to the BSEC notification no. BSEC/CMRRCD/2006-158/207/Admin/80, dated
03 June 2018, on Corporate Governance, the current committee is constituted with the following 5 (five) members of the Board:
Sl. Status with the
Name of the Member Status with the Bank Educational Qualification Remarks
No. Committee
1 Mohammad Solaiman Independent Director Chairman B.Com, FCA
2 Mohammed Shahabuddin Vice-Chairman Member MSc. & LLB

3 Khurshid Ul Alam Director Member B.A (Hon’s) & M.A in Economics
4 Mohammed Nasir Uddin FCMA Director Member M. Com in Accounting, FCMA
B.Com (Hons.) and M.Com in
5 Md Kamal Uddin Director Member Marketing; M.Econ. and Ph.D
in Development Economics
03 (three) meetings were held for reviewing the Financial Statements out of total 07 (seven) meetings held in the year 2022. The
Audit Committee reviewed the Financial Statements of 2022 on 27 April 2023.
6.0 Related party disclosures

As per IAS-24 “Related Party Disclosures”, a related party is a person or entity that is related to the entity (i.e. IBBL) that is
preparing its financial statements. Related party transaction is a transfer of resources, services or obligations between a reporting
entity and a related party, regardless of whether a price is charged as per IAS-24.
Related Parties include the Bank's Directors, key management personnel, associates, companies under common directorship etc.
as per IAS-24 “Related Party Disclosures”. All transactions involving related parties arising in the normal course of business
are conducted at arm’s length at normal commercial rates on the same terms and conditions as third party transactions using
valuation modes, as admissible.
6.1 Lending policy for transactions with Bank related person/related parties
Transactions with Bank related person/related parties including Directors are made as per rules and regulations of the Bank
Company Act, 1991 as amended and as per circulars issued by Bangladesh Bank time to time including the following general rules:
i) Terms & conditions for financial transaction with bank related person/related parties will not be easier than other persons i.e.
other investment clients.
ii) Prior approval from the majority of Board of Directors shall be required for all financial transactions with bank related person/
related parties.
iii) The Bank shall not allow funded facilities exceeding 10% of Tier-I capital to the Bank related persons/related parties; real
investment facilities shall be considered deducting encashable securities from funded investment.

6.2 The Name of Directors along with all related Firms/ Companies/ Institutions/ Parties: As at 31.12.2022
Sl. Name of the related Firms/ Companies/

Name of the Directors Status with the Bank Remarks
No Institutions/ Parties etc.
1 Mohammad Nazmul Hassan Chairman Armada Spinning Mills Limited, Former Professor,
University of Dhaka
2 Yousif Abdullah Al-Rajhi Vice-Chairman General Manager of Al-Rajhi Co. for Industry & Foreign
Trade Director
3 Mohammed Shahabuddin Vice-Chairman JMC Builders Limited, Commissioner (Ex) Anti
Corruption Commission
4 Md Salim Uddin Chairman, Kingsway Endeavors Limited, Professor, Department
Executive Committee of Accounting, University of Chittagong.
5 Mohammad Solaiman Chairman, Public Accountant, M Solaiman & Co., Chartered Independent
Audit Committee Accountants; Ex President, Taxes Appellate Tribunal, Director
Internal Resource Division, Ministry of Finance,
Govt. of Bangladesh
6 Abdul Matin Chairman, Uniglobe Business Resources Limited, Retired Major
Risk Management Generel
Committee
7 Areef Suleman Director Islamic Development Bank Foreign
Director
8 Mohammad Sirajul Karim Director Excel Dyeing & Printing Ltd., Professor, Primeasia
University, Banani, Dhaka
9 Md Kamal Uddin Director Professor, Department of International Business, Independent
University of Dhaka. Director
10 Mohammad Joynal Abedin Director ABC Ventures Limited, Ex Deputy Managing
Director, Bangladesh Krishi Bank
11 Dr Qazi Shahidul Alam Director Platinum Endeavours Limited, Professor, Orthopedic
Surgery, A.K. Modern Medical College
12 Musaid Abdullah A AlRajhi Director Arabsas Travel & Tourist Agency, K.S.A., GM, Foreign
Abdullah Abdul Aziz Al Rajhi & Sons Real Estate Director
Development Co., K.S.A.
13 Syed Abu Asad Director Excelsior Impex Company Limited, Ex Managing
Director, Rajshahi Krishi Unnayan Bank
14 Tanveer Ahmad Director Managing Director, Paradise International Limited &
Infinia Knit Fabrics Ltd.
15 Mohammad Quamrul Hasan Director Grand Business Limited, Ex Managing Director &
CEO, Jamuna Oil Co. Ltd., Chattogram
16 Dr Mohammad Saleh Jahur Director Professor of Accounting and Finance, University of Independent
Chittagong Director
17 Md Fashiul Alam Director Ex Vice Chancellor, Feni University & Dean, Faculty Independent
of Business Studies, Port City International University Director
18 Khurshid Ul Alam Director Lionhead Business Resources Ltd. & Ex Independent
Director and Chairman of Audit Committee, Pubali
Bank Limited, Ex DMD, Pubali Bank Limited and Ex
Executive Director, Bangladesh Bank
19 Mohammed Nasir Uddin FCMA Director BLU International Limited
20 Md Kamal Hossain Gazi Director Deputy Managing Director, Investment Corporation
of Bangladesh
21 Mohammed Monirul Moula Managing Director & Islami Bank Bangladesh Limited Ex-Officio
CEO Director

6.3 Related party balances and transactions
6.3.1 Related party balances

a) Nature and type of balances and transactions of related parties (Directors) of the Bank are as follows:
Amount in Taka
Name Relation-
Disbursement/
of the ship of the Outstanding Realised
Name charged Outstanding Provision Particulars
SL. Account/ Director Pur- Classified balance during
of the during the balance as on required & of value of
No. Firm/ with the pose Position as on the year
Director year 31.12.2022 maintained securities
Trust Firm/ Trust 01.01.2022 2022
2022
etc. etc.
1 2 3 4 5 6 7 8 9 10=7+8-9 11 12
Nil
Total - - - - -
(b) Other type of balances of related parties of the Bank are as follows:
Amount in Taka
SL. Name of the Nature of Closing balance

Nature of transactions
No. related parties relationship 31.12.2022 31.12.2021
Investment in share capital by IBBL 2,699,846,000 2,699,846,000
Bank balance 14,345,477 270,604,959
MTDR balance 680,000,000 429,915,001
Islami Bank Quard balance - -

1 Securities Limited Parent- subsidiary Profit receivable 35,603,537 23,533,679
(IBSL) Mudaraba investment 4,700,000,000 4,700,000,000
Accounts payable 46,533,599 1,934,171
Bank charge payable - -
Dividend payable - 134,992,300
Investment in share capital by IBBL 299,993,000 299,993,000
Islami Bank Capital Bank balance 4,604,825 3,792,491

2 Management Parent- subsidiary MTDR balance 424,432,856 425,560,752
Limited (IBCML) Mudaraba investment 300,000,000 300,000,000
Dividend payable - 20,999,510
6.3.2 Related party transactions

Nature and type of related party transactions of the Bank during the year 2022 are as follows:
Amount in Taka
SL. Name of the related

Nature of relationship Nature of transaction 2022
No. party
Deposit to Savings account maintained with IBBL 720,192,903
Withdraw from Savings account maintained with IBBL 977,652,385
Bank charge paid to IBBL 12,461
Islami Bank Securities
1 Parent- Subsidiary Payment against office rent 392,251
Limited (IBSL)
Tax deduction at source against MTDR 3,560,354
Profit paid on investment against MTDR 35,603,537
Profit withdrawn against MTDR 34,354,813
2 Chief Executive Officer Key Management Personnel Short-term employee benefits (Salary and allowance) 3,266,068
Islami Bank Capital Payment of interim dividend to IBBL -

3 Management Limited Parent- Subsidiary Profit against MTDR 22,934,746
(IBCML) Profit against MSND 27,504
4 Directors of the Bank Director Fees, TA/DA/hotel fare and other expenses 4,130,980

6.4 Other related party disclosures
1. There was no contracts of significance wherein a director has interests subsisted at any time during the year or at the end of
the year.
2. Investment to related parties is effected as per requirement of section 27 of Bank Company Act, 1991 as amended.
3. Share issued to Directors and Executives without consideration or exercisable at discount is Nil.
4. Other disclosures are not applicable as required by BRPD Circular No. 14 dated 25 June, 2003 and BRPD Circular No. 15
dated 09 November, 2009.
7.0 Cash in hand 31.12.2022 31.12.2021

Taka Taka
Cash in hand (including foreign currency) (Note. 7.1) 30,645,815,136 22,100,995,009
Balance with Bangladesh Bank & its agent bank(s) (including foreign currency) 92,858,977,487 224,062,391,107
(Note. 7.2)
Total 123,504,792,624 246,163,386,116
7.1 Cash in hand (including foreign currency)
In local currency 30,624,295,167 21,972,488,125
In foreign currency 21,519,969 128,506,884
Total 30,645,815,136 22,100,995,009
7.2 Balance with Bangladesh Bank & its agent bank(s) (including foreign currency)
(a) Balance with Bangladesh Bank
In foreign currency 1,723,689,006 1,554,705,918
Sub-total 89,263,814,987 221,472,903,634
(b) Balance with Sonali Bank Ltd. (as agent of Bangladesh Bank)
In foreign currency - -
Sub-total 3,595,162,500 2,589,487,473
Total (a+b) 92,858,977,487 224,062,391,107
7.3 Cash Reserve Requirement (CRR) & Statutory Liquidity Ratio (SLR)
Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in accordance
with the Section 25 & 33 of the Bank Company Act, 1991 as amended and the Instruction of Bangladesh Bank Order 1972,
Article 36, clause (1).
7.3.1 Cash Reserve Requirement (CRR)

The Cash Reserve Requirement (CRR) of the Bank was 4.00% of average total demand and time liabilities on bi-weekly basis
with a provision of minimum 3.50% on daily basis as per Bangladesh Bank MPD Circular No. 03 dated 09 April 2020.
Position of Cash Reserve Requirement (CRR)
Required CRR (4.00% of average total time and demand liabilities including 2.00% of OBU) 60,625,786,000 53,369,930,000
Actual reserve held with Bangladesh Bank in local currency (Note 7.2) * 87,512,125,982 219,890,197,716
Excess/(shortfall) 26,886,339,982 166,520,267,716
* Lien against TT discounting facilities of Tk. 28,000,000 has not been considered as CRR.
7.3.2 Statutory Liquidity Ratio (SLR)
The requirement of Statutory Liquidity Ratio (SLR) of the Bank was 5.50% on daily basis excluding CRR wherein the excess
CRR amount shall be included while calculating SLR from 01.02.2014 as per DOS Circular No. 01 dated 19 January 2014.
Position of Statutory Liquidity Ratio (SLR)
Required Reserve (5.50% of average total time and demand liabilities 84,380,664,000 73,850,661,000
including OBU)
Actual reserve maintained (Note- 7.3.2.1) 101,572,420,250 266,433,456,198
Excess/(shortfall) 17,191,756,250 192,582,795,198

31.12.2022 31.12.2021
Taka Taka
7.3.2.1 Components of Statutory Liquidity Ratio (SLR)

Cash in hand including foreign currency (Note- 7.1) 30,645,815,136 22,100,995,009
Excess CRR amount (Note- 7.3.1) 26,886,339,982 166,520,267,716
Balance with Sonali Bank as Agent Bank of BB (Note- 7.2.b) 3,595,162,500 2,589,487,473
Balance with Islamic Refinance Fund A/c (Note- 9) - -
Unencumbered approved securities :
Bangladesh Shipping Corporation (Note -10.1) 230,600,000 161,056,000
Bangladesh Government Islamic Investment Bond (Note -10.1) 40,000,000,000 60,000,000,000
Bangladesh Government Sukuk Bond (Islamic Bond) 214,502,632 15,061,650,000
Total 101,572,420,250 266,433,456,198
7(a) Consolidated cash in hand
7(a)(i) Cash in hand (including foreign currency)
Islami Bank Bangladesh Limited 30,645,815,136 22,100,995,009
Islami Bank Securities Limited 19,000 -
Islami Bank Capital Management Limited 5,586 66,640
Sub total 30,645,839,722 22,101,061,649
7(a)(ii) Balance with Bangladesh Bank & its agent bank(s) (including foreign currency)
Islami Bank Securities Limited - -
Islami Bank Capital Management Limited - -
Sub total (ii) 92,858,977,487 224,062,391,107
Total (i+ii) 123,504,817,210 246,163,452,756
8.0 Balance with other banks & financial institutions
8.i In Bangladesh
In current account 739,890,409 901,882,831
OBU's balance with treasury division, IBBL (Note-2.0 _OBU) 260,151,791 173,081,459
In Mudaraba savings & MTDR account with other islamic banks/financial institutions 86,102,354,719 60,669,776,603
Sub total 87,102,396,919 61,744,740,893
Less: OBU's balance with treasury division, IBBL 260,151,791 173,081,459
Sub total (i) 86,842,245,128 61,571,659,434
8.ii Outside Bangladesh (Note 8.1)
In current account 23,944,759,230 14,584,448,132
In Mudaraba savings & MTDR account with other islamic banks/financial institutions - -
Sub total (ii) 23,944,759,230 14,584,448,132
Grand total (i+ii) 110,787,004,358 76,156,107,566
8.1 Currency-wise amount and exchange rate of Balance with other banks & financial institutions outside Bangladesh
Foreign currency Amount in F.C Exchange rate 31.12.2022 31.12.2021
US Dollar 221,188,921.73 103.297 22,848,152,057 12,665,704,366
Great Britain Pound (GBP) 968,306.74 124.111 120,177,808 177,892,109
Saudi Riyal 692,228.07 27.465 19,012,252 102,093,030
EURO 3,456,916.76 109.557 378,728,738 345,345,952
YEN 14,382,814.00 0.768 11,047,439 52,012,092
Canadian Dollar 35,645.67 75.881 2,704,833 3,602,882
Swiss Franc 158,508.85 111.144 17,617,260 8,821,040
Singapore Dollar 107,098.21 76.494 8,192,328 27,186,272
China Currency (CNY) 5,788,873.27 14.799 85,669,536 2,154,545
ACU Dollar 1,404,506.72 103.297 145,081,331 1,109,657,817
AED 10,965,403.21 28.123 308,375,648 89,978,027
Total 23,944,759,230 14,584,448,132

31.12.2022 31.12.2021
Taka Taka
8.2 Maturity - wise classification balance with other banks & financial institutions
Repayable on demand 192,104,358 30,826,659,434
With a residual maturity of
Up to 1 Month 89,599,900,000 14,584,448,132
Over 1 month but not more than 3 months 18,715,000,000 28,575,000,000
Over 3 months but not more than 1 year 2,280,000,000 2,170,000,000
Over 1 year but not more than 5 years - -
More than 5 years - -
Total 110,787,004,358 76,156,107,566
8(a) Consolidated Balance with other banks & financial institutions
8(a)(i) In Bangladesh
Islami Bank Securities Limited 5,202,537,715 5,512,393,900
Islami Bank Capital Management Limited 429,037,681 429,313,243
Inter-company balances (1,169,785,467) (1,129,368,735)
Sub-total (i) 91,304,035,057 66,383,997,842
8(a)(ii) Outside Bangladesh
Sub-total (ii) 23,944,759,230 14,584,448,132
Total (i+ii) 115,248,794,287 80,968,445,974
9.0 Placement with banks & other financial institutions
Placement to OBU by Treasury Division, IBBL (Note-6.0 _OBU) 89,273,462,812 22,149,947,799
Placement to AD Branches for MDB in FC by OBU (Note-3.0 _OBU) 267,278,973 4,165,626,209
Placement to Islamic Refinance Fund Account (*) - -
89,540,741,785 26,315,574,008
Less: Placement to OBU by Treasury Division, IBBL 89,273,462,812 22,149,947,799
Less: Placement to AD Branches for MDB in FC by OBU 267,278,973 4,165,626,209
Total - -
10.0 Investments in shares & securities

As at December 2022
Face
Particulars Un-real-
No. of Value/ Total Cost Market
ized gain/ Remarks
share Average price Value
Loss
cost
10.1 Government
Bangladesh Shipping Corporation (BSC) 2,000,000 115.30 230,600,000 230,600,000 - Quoted
MPETROLEUM 69,000 213.89 14,758,673 13,703,400 (1,055,273) Quoted
BSCCL 527,800 208.56 110,080,537 115,535,420 5,454,883 Quoted
TITASGAS 100,000 43.50 4,350,232 4,090,000 (260,232) Quoted
Karmasangsthan Bank 100,000 100.00 10,000,000 10,000,000 - Un-Quoted
Central Depository Bangladesh Ltd. 2,284,721 2.75 6,277,770 6,277,770 - Un-Quoted
Bangladesh Government Sukuk Bond 3,179,345 10,000.00 31,793,450,000 31,793,450,000 - Un-Quoted
(Islamic Bond)
Bangladesh Government Islamic 10 4,000,000,000 40,000,000,000 40,000,000,000 - Un-Quoted
Investment Bond (Islamic Bond)
Sub total (i) 8,260,876 72,169,517,212 72,173,656,590 4,139,378
Government- Special Fund

BSCCL 19,000 228.70 4,345,295 4,159,100 (186,195) Quoted
Total Government 8,279,876 72,173,862,507 72,177,815,690 3,953,183

As at December 2022
Face
ized gain/ Remarks
Loss
cost
10.2 Other than Government
i) Subsidiary Companies
Islami Bank Securities Limited 2,699,846 1,000.00 2,699,846,000 2,699,846,000 - Un-Quoted
Islami Bank Capital Management Ltd. 299,993 1,000.00 299,993,000 299,993,000 - Un-Quoted
Sub total (i) 2,999,839 2,999,839,000 2,999,839,000 -
ii) Mutual Funds
SEML IBBL Shari'ah Fund 50,000,000 10.00 500,000,000 425,000,000 (75,000,000) Quoted
UFS-IBBL Shari'ah Unit Fund 50,000,000 10.00 500,000,000 459,500,000 (40,500,000) Un-Quoted
CAPM IBBL Shari'ah Fund 44,500,000 10.00 445,000,000 614,100,000 169,100,000 Quoted
NAM IBBL Islamic Mutual Fund 10,651,731 9.99 106,399,998 90,859,265 (15,540,733) Un-Quoted
AT Capital Shari'ah Unit Fund 5,010,020 9.98 50,000,000 54,759,519 4,759,519 Un-Quoted
Capitec Padma PFS Unit Fund 10,000,000 10.00 100,000,000 104,000,000 4,000,000 Un-Quoted
UFS-Padma Life Ialami Unit Fund 15,000,000 10.00 150,000,000 140,250,000 (9,750,000) Un-Quoted
Capitec IBBL Shariah Unit Fund 3,750,000 10.00 37,500,000 38,812,500 1,312,500 Un-Quoted
Sub total (ii) 188,911,751 1,888,899,998 1,927,281,284 38,381,286
iii) Foreign Share
APIF of IsDB 1,011 972,513.65 983,211,300 983,211,300 - Un-Quoted
Sub total (iii) 1,011 983,211,300 983,211,300 -
iv) Subordinated Debt
Mudaraba Subordinated Debt of Union 80 10,000,000 800,000,000 800,000,000 - Un-Quoted

Bank Ltd.
Mudaraba Subordinated Debt of First 480 10,00,000 48,00,00,000 48,00,00,000 - Un-Quoted

Security Islami Bank (2nd)
Mudaraba Subordinated Debt Social 120 10,000,000 1,200,000,000 1,200,000,000 - Un-Quoted

Islami Bank Ltd (3rd)
Mudaraba Subordinated Debt of First 260 10,000,000 2,600,000,000 2,600,000,000 - Un-Quoted

Security Islami Bank (3rd)
SIBL Mudaraba Perpetual Boad 1,500 1,000,000 1,500,000,000 1,500,000,000 - Un-Quoted
EXIM Bank Mudaraba Perpetual Boad 1,800 1,000,000 1,800,000,000 1,800,000,000 - Un-Quoted
FSIBL Mudaraba Perpetual Boad 1,800 1,000,000 1,800,000,000 1,800,000,000 - Un-Quoted
Sub total (iv) 6,040 10,180,000,000 10,180,000,000 -

As at December 2022
Face
ized gain/ Remarks
Loss
cost
v) Others
Bangladesh Aroma Tea Co 1,570 - 157,000 - - De-listed
ACMELAB 855,000 102.34 87,500,435 72,675,000 (14,825,435) Quoted
ACTIVEFINE 1,593,000 30.54 48,643,133 30,744,900 (17,898,233) Quoted
AMANFEED 170,000 39.94 6,789,431 5,695,000 (1,094,431) Quoted
ACI 84,000 274.74 23,078,030 21,856,800 (1,221,230) Quoted
ALIF 719,970 14.21 10,231,556 9,575,601 (655,955) Quoted
AFC AGRO 129,030 41.27 5,325,416 3,032,205 (2,293,211) Quoted
AAMRACH 285,500 42.28 12,071,503 11,420,000 (651,503) Quoted
APOLOISPAT 500,000 10.67 5,333,252 4,100,000 (1,233,252) Quoted
AMCL(PRAN) 19,500 363.43 7,086,817 5,179,200 (1,907,617) Quoted
BATASHOE 9,600 1278.82 12,276,674 9,142,080 (3,134,594) Quoted
BBS 901,419 36.80 33,173,690 19,470,650 (13,703,040) Quoted
BBSCABLES 876,750 66.09 57,943,514 43,749,825 (14,193,689) Quoted
BERGERPBL 2,800 1779.40 4982320 4823280 (159,040) Quoted
BEACONPHAR 160,000 256.89 41,102,483 45,760,000 4,657,517 Quoted
BPPL 200,000 44.18 8,835,672 5,860,000 (2,975,672) Quoted
BSRMSTEEL 492,334 84.40 41,555,229 31,460,143 (10,095,086) Quoted
BXPHARMA 50,000 182.00 9,099,797 7,310,000 (1,789,797) Quoted
BEXIMCO 233,500 139.39 32,547,812 26,992,600 (5,555,212) Quoted
CONFIDCEM 471,450 131.32 61,912,826 41,959,050 (19,953,776) Quoted
DOREENPOWER 75,040 70.43 5,285,068 4,577,440 (707,628) Quoted
DSSL 200,000 18.53 3,706,668 3,400,000 (306,668) Quoted
FEKDIL 550,000 21.13 11,623,224 9,460,000 (2,163,224) Quoted
ESQUIRENIT 119,000 39.39 4,687,327 4,105,500 (581,827) Quoted
EXIMBANK 2,000,000 12.41 24,821,831 20,800,000 (4,021,831) Quoted
GP 271,700 357.18 97,044,607 77,869,220 (19,175,387) Quoted
GENNEXT 1,391,500 10.03 13,952,950 8,349,000 (5,603,950) Quoted
GPHSPAT 870,375 60.14 52,342,826 38,992,800 (13,350,026) Quoted
HEIDELBCEM 94,174 520.48 49,015,521 16,866,563 (32,148,958) Quoted
IBNSINA 127,000 292.90 37,198,321 36,398,200 (800,121) Quoted
IFADAUTOS 1,006,614 70.01 70,473,088 44,391,677 (26,081,411) Quoted
IBP 229,030 28.86 6,610,288 3,778,995 (2,831,293) Quoted
ISLAMICFIN 100,000 33.77 3,376,740 1,970,000 (1,406,740) Quoted
LHBL 1,150,000 86.63 99,621,235 74,520,000 (25,101,235) Quoted
LINDEBD 14,519 1426.36 20,709,377 20,293,206 (416,171) Quoted
MARICO 1,000 2335.88 2,335,882 2,421,500 85,618 Quoted
MJLBD 600,100 102.45 61,482,877 52,028,670 (9,454,207) Quoted
NPOLYMAR 290,000 65.45 18,981,594 14,790,000 (4,191,594) Quoted
NORTHRNINS 88,000 63.41 5,579,812 3,484,800 (2,095,012) Quoted
OLYMPIC 252,812 255.94 64,705,775 31,348,688 (33,357,087) Quoted
ORIONPHARM 440,000 127.82 56,240,835 36,388,000 (19,852,835) Quoted

As at December 2022
Face
ized gain/ Remarks
Loss
cost
POWERGRID 981,988 65.04 63,864,634 51,456,171 (12,408,463) Quoted
PTL 366,042 84.08 30,775,425 28,185,234 (2,590,191) Quoted
QUEENSOUTH 202,254 30.96 6,261,451 4,995,674 (1,265,777) Quoted
RAKCERAMIC 390,000 45.74 17,838,545 16,731,000 (1,107,545) Quoted
ROBI 200,000 46.58 9,316,224 6,000,000 (3,316,224) Quoted
RINGSHINE 10,000 8.61 86,096 98,000 11,904 Quoted
RUNNERAUTO 2,058,716 42.86 88,230,686 99,641,854 11,411,168 Quoted
RECKITBEN 212 5839.70 1,238,016 1,009,268 (228,748) Quoted
SAPORTL 242,160 47.29 11,450,609 7,264,800 (4,185,809) Quoted
SAIFPOWER 800,000 39.58 31,661,950 23,760,000 (7,901,950) Quoted
SHASHADNIM 122,475 49.22 6,027,932 3,306,825 (2,721,107) Quoted
SIBL 2,703,666 17.17 46,419,232 33,255,092 (13,164,140) Quoted
SIMTEX 1,100,000 19.63 21,598,407 18,480,000 (3,118,407) Quoted
SINGERBD 60,000 177.40 10,644,190 9,114,000 (1,530,190) Quoted
SQURPHARMA 345,000 213.05 73,501,302 72,381,000 (1,120,302) Quoted
SQUARETEXT 100,000 69.45 6,944,819 6,750,000 (194,819) Quoted
SUMITPOWER 155,500 45.94 7,143,759 5,287,000 (1,856,759) Quoted
TALLUSPIN 244,528 15.58 3,809,976 2,420,827 (1,389,149) Quoted
WALTON 25,193 1317.35 33,188,043 26,394,706 (6,793,337) Quoted
Sub Total (v) 27,734,021 1,689,443,733 1,323,572,044 (365,871,689)
vi) Others- Special Fund
ACI 94,500 267.84 25,310,586 24,588,900 (721,686) Quoted
BXPHARMA 236,000 192.53 45,436,971 34,503,200 (10,933,771) Quoted
DOREENPOWER 375,170 67.78 25,430,373 22,885,370 (2,545,003) Quoted
EXIMBANK 700,000 12.56 8,794,933 7,280,000 (1,514,933) Quoted
GP 160,000 347.99 55,678,608 45,856,000 (9,822,608) Quoted
GPHSPAT 548,600 51.42 28,206,911 24,577,280 (3,629,631) Quoted
LHBL 210,000 74.85 15,719,200 13,608,000 (2,111,200) Quoted
OLYMPIC 182,000 152.52 27,759,424 22,568,000 (5,191,424) Quoted
POWERGRID 776,600 64.25 49,899,190 40,693,840 (9,205,350) Quoted
PTL 50,000 79.16 3,957,900 3,850,000 (107,900) Quoted
SHAHJABANK 21,665 19.05 412,664 407,302 (5,362) Quoted
UPGDCL 114,461 278.02 31,822,785 26,749,536 (5,073,249) Quoted
Sub Total (vi) 5,157,059 539,406,898 439,582,145 (99,824,753)
Total Other than Government (i to vi) 224,809,721 18,280,800,929 17,853,485,773 (427,315,156)
Total (10.1+10.2) 233,089,597 90,454,663,436 90,031,301,463 (423,361,973)

10.0 Investments in shares & securities
As at December 2021
Face
Particulars No. of Value/ Un-realized
Total Cost price Market Value Remarks
share Average gain/loss
cost
10.1 Government
Bangladesh Shipping Corporation (BSC) 2,240,000 71.90 161,056,000 161,056,000 - Quoted

MPETROLEUM 40,000 225.24 9,009,645 7,872,000 (1,137,645) Quoted
BSCCL 532,340 196.67 104,693,428 111,844,634 7,151,206 Quoted
Karmasangsthan Bank 100,000 100 10,000,000 10,000,000 - Un-Quoted
Central Depository Bangladesh Ltd. 2,284,721 3 6,277,770 6,277,770 - Un-Quoted
Bangladesh Government Sukuk Bond 150,616,500 100 15,061,650,000 15,061,650,000 - Un-Quoted
(Islamic Bond)
Bangladesh Government Islamic Invest- 18 3,333,333,333 60,000,000,000 60,000,000,000 - Un-Quoted
ment Bond (Islamic Bond)
Sub Total Government 155,813,579 75,352,686,843 75,358,700,404 6,013,561

10.2 Other than Government
i) Subsidiary companies
Islami Bank Securities Limited 2,699,846 1,000.00 2,699,846,000 2,699,846,000 - Un-Quoted
Islami Bank Capital Management Ltd. 299,993 1,000.00 299,993,000 299,993,000 - Un-Quoted
Sub total (i) 2,999,839 2,999,839,000 2,999,839,000 -
ii) Mutual Funds
SEML IBBL Shari'ah Fund 50,000,000 10.00 500,000,000 470,000,000 (30,000,000) Quoted
UFS-IBBL Shari'ah Unit Fund 50,000,000 10.00 500,000,000 530,000,000 30,000,000 Un-Quoted
CAPM IBBL Shari'ah Fund 47,500,000 10.00 475,000,000 793,250,000 318,250,000 Quoted
NAM IBBL Islamic Mutual Fund 10,651,731 9.99 106,399,998 106,836,862 436,864 Un-Quoted
AT Capital Shari'ah Unit Fund 5,010,020 9.98 50,000,000 57,464,929 7,464,929 Un-Quoted
Capitec Padma PFS Unit Fund 10,000,000 10.00 100,000,000 105,100,000 5,100,000 Un-Quoted
UFS-Padma Life Ialami Unit Fund 15,000,000 10.00 150,000,000 166,500,000 16,500,000 Un-Quoted
Capitec IBBL Shariah Unit Fund 3,750,000 10.00 37,500,000 41,437,500 3,937,500 Un-Quoted
Sub Total (ii) 191,911,751 1,918,899,998 2,270,589,291 351,689,293
iii) Foreign Share
APIF of IsDB 1,000 983,211.30 983,211,300 983,211,300 - Un-Quoted
Sub Total (iii) 983,211 983,211,300 983,211,300 -
iv) Subordinated Debt
Mudaraba Subordinated Debt of Union 100 10,000,000 1,000,000,000 1,000,000,000 - Un-Quoted
Bank Ltd.
Mudaraba Subordinated Debt of First 720 1,000,000 720,000,000 720,000,000 - Un-Quoted
Security Islami Bank (2nd)
Mudaraba Subordinated Debt Social 160 10,000,000 1,600,000,000 1,600,000,000 - Un-Quoted
Islami Bank Ltd (3rd)
Mudaraba Subordinated Debt of First 3,250 1,000,000 3,250,000,000 3,250,000,000 - Un-Quoted
Security Islami Bank (3rd)
SIBL Mudaraba Perpetual Boad 1,500 1,000,000 1,500,000,000 1,500,000,000 - Un-Quoted
EXIM Bank Mudaraba Perpetual Boad 1,800 1,000,000 1,800,000,000 1,800,000,000 - Un-Quoted
FSIBL Mudaraba Perpetual Boad 1,800 1,000,000 1,800,000,000 1,800,000,000 - Un-Quoted
Sub Total (iv) 9,330 11,670,000,000 11,670,000,000 -

As at December 2021
Face
cost
v) Others
MSF Assets Management Ltd - - - - - Un-Quoted
Bangladesh Aroma Tea Co 1,570 100.00 157,000 - (157,000) De-listed
ACMELAB 750,462 104.78 78,637,127 64,914,963 (13,722,164) Quoted
ACTIVEFINE 1,193,000 32.57 38,855,065 30,540,800 (8,314,265) Quoted
APEXFOOT 23,269 336.93 7,840,046 6,238,419 (1,601,627) Quoted
ACI 128,500 291.89 37,508,488 36,673,900 (1,304,964) Quoted
ALIF 19,970 19.13 381,993 277,583 (104,410) Quoted
AFC AGRO 129,030 41.27 5,325,416 3,625,743 (1,699,673) Quoted
AGNISYSL 300,000 24.43 7,329,683 6,330,000 (999,683) Quoted
APOLOISPAT 200,000 13.62 2,724,325 1,680,000 (1,044,325) Quoted
BATASHOE 9,600 1,278.82 12,276,674 9,282,240 (2,994,434) Quoted
BBS 9,98,617 36.76 36,705,047 18,274,691 (18,430,356) Quoted
BBSCABLES 8,93,219 69.70 62,260,683 49,930,942 (12,329,741) Quoted
BERGERPBL 1,400 1,809.04 2,532,655 2,472,260 (60,395) Quoted
BEACONPHAR 2,07,000 188.39 38,996,419 50,383,800 11,387,381 Quoted
BPPL 2,00,000 44.18 8,835,672 6,840,000 (1,995,672) Quoted
BPML 25,000 65.54 1,638,589 1,077,500 (561,089) Quoted
BSRMSTEEL 4,51,827 85.99 38,852,797 32,124,900 (6,727,897) Quoted
BXPHARMA 75,000 187.78 14,083,173 14,452,500 (369,327) Quoted
CONFIDCEM 4,49,000 137.89 61,912,827 54,733,100 (7,179,727) Quoted
DOREENPOWER 15,120 71.52 1,081,335 1,025,135 (56,200) Quoted
EHL 1,80,000 58.43 10,516,543 8,424,000 (2,092,543) Quoted
ESQUIRENIT 41,780 45.00 1,880,100 1,462,300 (417,800) Quoted
EXIMBANK 15,40,000 12.89 19,857,300 19,558,001 (299,300) Quoted
GP 3,44,900 361.36 124,633,021 120,542,550 (4,090,471) Quoted
GENNEXT 13,91,500 10.03 13,952,950 8,070,700 (5,882,250) Quoted
GPHSPAT 13,20,000 59.43 78,442,387 69,960,000 (8,482,387) Quoted
HEIDELBCEM 94,174 520.48 49,015,521 25,652,998 (23,362,523) Quoted
IBNSINA 53,603 269.52 14,446,985 14,542,494 95,509 Quoted
IFADAUTOS 9,58,680 73.51 70,473,088 45,345,564 (25,127,524) Quoted
IBP 2,22,360 29.73 6,610,288 3,913,536 (2,696,752) Quoted
INTRACO 1,90,000 23.04 4,378,522 3,686,000 (692,522) Quoted
ISLAMICFIN 1,00,000 33.77 3,376,740 2,600,000 (776,740) Quoted
LHBL 5,00,000 99.08 49,538,510 35,550,000 (13,988,510) Quoted
LINDEBD 29,138 1,438.38 41,911,539 46,032,212 4,120,674 Quoted
MARICO 1,000 2,335.88 2,335,882 2,301,000 (34,882) Quoted
MJLBD 5,01,100 105.28 52,758,129 44,247,130 (8,510,999) Quoted
NAHEEACP 2,50,000 48.57 12,141,817 10,025,000 (2,116,817) Quoted
NPOLYMAR 75,000 71.57 5,367,693 3,765,000 (1,602,693) Quoted
NORTHRNINS 88,000 63.41 5,579,812 4,734,400 (845,412) Quoted
OLYMPIC 2,42,812 261.20 63,422,084 38,995,607 (24,426,477) Quoted
POWERGRID 8,45,000 63.64 53,771,959 50,362,000 (3,409,959) Quoted
PTL 30,000 96.16 2,884,758 2,823,000 (61,758) Quoted
QUASEMIND 1,50,000 58.84 8,825,440 6,795,000 (2,030,440) Quoted
QUEENSOUTH 1,73,460 36.10 6,261,451 4,232,424 (2,029,027) Quoted
RAKCERAMIC 4,00,000 51.74 20,697,286 17,760,000 (2,937,286) Quoted
ROBI 2,00,000 46.58 9,316,224 6,920,000 (2,396,224) Quoted
RINGSHINE 10,000 8.61 86,096 96,000 9,904 Quoted

As at December 2021
Face
cost
RUNNERAUTO 21,42,505 42.86 91,821,643 109,910,507 18,088,864 Quoted
SAPORTL 2,12,160 49.71 10,546,418 5,197,920 (5,348,498) Quoted
SHASHADNIM 1,22,475 49.22 6,027,932 3,000,638 (3,027,295) Quoted
SIBL 1,61,025 14.86 2,392,584 2,383,170 (9,414) Quoted
SINGERBD 53,900 178.55 9,624,113 9,157,610 (466,503) Quoted
SPCL 80,000 92.01 7,360,501 6,872,000 (488,501) Quoted
SIMTEX 9,16,050 20.47 18,753,589 15,572,850 (3,180,739) Quoted
SQURPHARMA 4,20,000 206.54 86,744,742 90,006,000 3,261,258 Quoted
SUMITPOWER 1,00,000 50.00 4,999,980 3,890,000 (1,109,980) Quoted
TALLUSPIN 2,44,528 15.58 3,809,976 2,274,110 (1,535,866) Quoted
WALTON 19,995 1,372.35 27,440,161 22,970,256 (4,469,905) Quoted
Sub Total (v) 2,05,46,729 1,463,750,911 1,264,164,452 (200,325,114)
vi) Others- Special Fund
ACI 25,000 304.22 7,605,376 7,135,000 (470,376) Quoted
BBSCABLES 21,000 57.29 1,203,000 1,173,900 (29,100) Quoted
BXPHARMA 165,000 203.10 33,522,840 31,795,500 (1,727,340) Quoted
DOREENPOWER 395,872 76.13 30,136,068 26,840,122 (3,295,946) Quoted
EHL 150,000 60.08 9,011,518 7,020,000 (1,991,518) Quoted
EXIMBANK 287,255 13.35 3,835,802 3,648,139 (187,663) Quoted
GP 145,000 351.59 50,981,269 50,677,500 (303,769) Quoted
GPHSPAT 324,709 57.02 18,515,329 17,209,577 (1,305,752) Quoted
IBNSINA 20,000 270.01 5,400,236 5,426,000 25,764 Quoted
LHBL 50,000 80.17 4,003,277 3,555,000 (448,277) Quoted
NAHEEACP 150,000 52.09 7,812,985 6,015,000 (1,797,985) Quoted
OLYMPIC 90,000 171.29 15,416,431 14,454,000 (962,431) Quoted
POWERGRID 390,000 58.41 22,780,734 23,244,000 463,266 Quoted
RAKCERAMIC 466,500 45.98 21,450,199 20,712,600 (737,599) Quoted
SHAHJABANK 100,000 21.29 2,128,920 2,180,000 51,080 Quoted
SPCL 20,000 91.08 1,821,636 1,718,000 (103,636) Quoted
UPGDCL 90,000 285.74 25,716,363 21,978,000 (3,738,363) Quoted
Sub Total (vi) 41,29,530 431,012,415 393,135,611 (3,78,76,802)
Sub Total Other than Government (i to v) 220,580,390 19,466,713,623 19,580,939,654 11,34,87,376
Total (10.1+10.2) 376,393,969 94,819,400,466 94,939,640,058 11,95,00,937
10.3 Revaluation of shares & securities

All Shares and Securities are shown at cost price other than the Shares of Bangladesh Shipping Corporation (BSC) which have been
recognized at closing market price as on 31.12.2022 of Dhaka Stock Exchange Ltd. (DSE) as per BRPD Circular No.14 dated 25.06.2003
and DOS Circular No. 05 dated 26 May 2008. Netting-off un-realized gain and diminution of values in securities as per DOS Circular
No. 04 dated 24.11.2011, the ultimate requirement of provision for Capital Market Investment for the year 2022 (Note-17.2.1) is Tk.
513,451,432. However, provision for Tk. 157,000 is required for de-listed securities of Bangladesh Aroma Tea. Change in revaluation
of shares of Bangladesh Shipping Corporation (BSC) has been shown as revaluation reserve of securities.

31.12.2022 31.12.2021
Taka Taka
10.4 Maturity grouping of investments in shares & securities
Repayable on demand - -
Up to 1 Month 2,304,263,436 2,769,800,000
Over 1 year but not more than 5 years 4,230,000,000 5,571,600,000
More than 5 years 76,881,700,000 84,107,900,466
Total 90,454,663,436 94,819,400,466
10(a) Consolidated investments in shares & securities
10(a)(i) Government
Inter-company balances - -
Sub total (i) 72,173,862,507 75,352,686,843
10(a)(ii) Others
Sub total (ii) 19,216,494,808 20,299,111,961
Total (i+ii) 91,390,357,315 95,651,798,804
11.0 Investments
General investments etc. (Note-11.1) 1,326,643,607,786 1,137,670,855,057
Bills purchased & discounted (Note-11.2) 134,721,889,727 53,502,145,189
Total 1,461,365,497,513 1,191,173,000,246
11.1 General investments etc.

i) In Bangladesh
Bai - Murabaha 841,296,289,653 706,178,064,578
Bai - Muajjal 90,626,114,176 77,957,330,311
Hire Purchase under Shirkatul Melk 238,453,148,471 222,725,969,511
Hire Purchase under Shirkatul Melk (HPSM in FC-OBU) 11,288,596,229 12,865,002,198
Hire Purchase under Shirkatul Melk (HPSM in FC-GTF) 2,352,511,331 1,226,799,337
Bai-Murabaha Import Bills 14,743,245,102 9,089,787,606
Baim- FC Bills 16,511,007,883 15,717,432,354
Musharaka 188,236,382 187,609,673
Mudaraba 5,000,140,000 5,000,160,000
Bai - Salam 19,016,075,613 16,583,101,369
Murabaha Foreign Currency Investment 42,741,796,096 33,017,731,333
Quard 42,649,571,998 35,957,685,286
Investment in Khidmah Card 1,776,874,850 1,164,181,501
Sub total (i) 1,326,643,607,786 1,137,670,855,057

31.12.2022 31.12.2021
Taka Taka
ii) Out side Bangladesh
Bai - Murabaha - -
Bai - Muajjal - -
Hire Purchase under Shirkatul Melk - -
Musharaka - -
Overseas Investment - -
Bai - Salam - -
Quard - -
Others - -
Sub total (ii) - -
Grand total (i+ii) 1,326,643,607,786 1,137,670,855,057
11.1.1 Maturity-wise classification
Up to 1 Month 169,223,200,000 155,563,558,481
More than 5 years 210,465,900,000 116,901,548,317
Total 1,326,643,607,786 1,137,670,855,057
11.1(a) Consolidated general investments etc.
Islami Bank Bangladesh Limited 1,326,643,607,786 1,137,670,855,057
Total 1,321,643,607,786 1,132,670,855,057
11.2 Bills purchased & discounted
i) In Bangladesh
Musharaka Doc. Bill (MDB) 6,071,795,536 4,174,428,428
ii) Outside Bangladesh
Mudaraba Doc Bill (UPAS)-OBU 125,851,365,332 42,775,977,150
Bai- As- Sarf (FDB) 1,546,935,639 2,390,700,235
MDB in FC 1,251,793,220 4,161,039,376
Sub-total (ii) 128,650,094,191 49,327,716,761
Total (i+ii) 134,721,889,727 53,502,145,189
11.2.1 Maturity-wise classification of bills purchased & discounted
Payable within 1 month 100,152,700,000 17,655,707,912
Over 1 month but less than 3 months 15,680,500,000 17,120,686,460
Over 3 months but less than 6 months 9,922,569,095 9,922,569,095
6 months or more 8,966,120,632 8,803,181,722
Total 134,721,889,727 53,502,145,189
11.2(a) Consolidated bills purchased & discounted
Total 134,721,889,727 53,502,145,189
11.3 Geographical location wise classification of investments
Within Bangladesh
In rural areas 82,566,782,467 78,140,895,879
In urban areas 1,378,798,715,046 1,113,032,104,367
Sub total 1,461,365,497,513 1,191,173,000,246
Outside Bangladesh - -
Total 1,461,365,497,513 1,191,173,000,246

31.12.2022 31.12.2021
Taka Taka
11.4 Division wise classification of investments (*)
Dhaka division 675,587,324,162 551,990,001,334
Chattogram division 427,683,318,742 378,911,874,681
Khulna division 85,151,150,493 65,633,587,849
Rajshahi division 168,201,588,029 109,706,959,001
Barisal division 19,294,389,093 15,723,472,951
Sylhet division 18,666,796,253 15,961,707,390
Rangpur division 45,945,340,308 37,045,455,211
Mymensingh division 20,835,590,433 16,199,941,829
Total 1,461,365,497,513 1,191,173,000,246
(*) Division wise distribution was made on the basis of the location of the respective branch not on the basis of where the
client's business actually located.
11.5 Investment on the basis of significant concentration including bills purchased and discounted
Investment to directors - -
Investment to chief executive & other senior executives 1,729,627,570 1,601,240,640
Sector wise other investments:
Trade & commerce 478,872,859,614 377,471,856,473
Real estate 84,824,439,721 78,279,954,216
Transport 9,358,061,358 9,550,583,572
Agriculture (including fertilizer & agriculture implements) 46,982,709,146 35,589,480,273
Industrial investment (Note-11.5.1) 772,147,671,644 634,313,415,162
Others 67,450,128,460 54,366,469,910
Total 1,461,365,497,513 1,191,173,000,246
11.5.1 Classification of industrial investments

Textile- spinning, weaving & dyeing 159,189,380,449 139,118,414,088
Garments & garments accessories 75,519,332,497 56,946,693,125
Steel, re-rolling & engineering 109,167,810,930 67,748,408,957
Agro-based industry 229,259,205,649 214,345,872,186
Food & beverage 16,122,251,652 16,926,903,051
Cements industry 16,837,020,948 13,039,957,909
Pharmaceuticals 4,517,198,001 3,837,733,295
Poultry, poultry feed & hatchery 3,431,744,931 2,156,822,693
Sanitary wares 60,036,128 17,849,494
Chemicals, toiletries & petroleum 16,164,625,021 13,131,013,270
Printing & packaging 15,150,781,116 13,857,612,473
Power (electricity) 12,379,742,126 5,499,176,756
Ceramic & bricks 13,926,208,986 12,064,818,208
Health care (hospital & others) 7,853,903,445 7,638,590,176
Plastic industries 6,846,274,595 6,470,433,370
Petrol pump & CNG filling station 2,771,844,805 2,153,085,483
Information technology 211,264,584 336,908,707
Hotel & restaurant 1,624,862,942 1,404,000,232
Other industries 81,114,182,839 57,619,121,689
Total 772,147,671,644 634,313,415,162

11.6 Details of investment to customers (10.00% of bank's regulatory equity and above)
Number of clients with amount of gross investments exceeding 10.00% of total regulatory equity of the Bank & classified
amount thereon are given below:
Number of clients 36 30
Amount of investments (Taka) 554,448,200,000 449,270,900,000
Classified amount thereon Nil Nil
Measures taken for recovery Not Applicable Not Applicable
Total regulatory capital of the Bank was Tk. 102,738.44 million as at 31 December 2022 & Tk. 98,189.08 million as at 31 December 2021.
(Taka in million)
Sl. Outstanding gross investment (*) as on 31.12.2022

Name of clients Sanctioned limit 31.12.2021
No. Funded Non-funded (**) Total
1 S. Alam Steels & Refined Sugar Ind. Ltd. 40,000 21,374 19,985 41,359 32,281
2 S. Alam Vegetable Oil Ltd. 38,400 20,410 19,672 40,082 38,506
3 S. Alam Super Edible Oil Ltd. 38,400 21,626 18,546 40,172 41,533
4 Bashundara Multifood Group 29,884 9,418 13,459 22,877 23,365
5 Nabil Group 29,000 9,721 8,959 18,680 26,172
6 Abul Khair Group 25,001 - 20,078 20,078 7,314
7 Noman Group 24,924 9,746 10,768 20,514 16,151
8 Mahmud Denims Ltd 24,907 12,721 12,418 25,139 16,809
9 Infinite CR Strips Ind Ltd. 23,200 13,830 - 13,830 14,189
10 BRB Group 21,543 1,628 2,297 3,925 3,856
11 Nassa Group 21,385 14,537 5,713 20,250 16,124
12 S.Alam Cold Rolled Steels Ltd. 21,150 15,191 2,621 17,812 14,765
13 Badsha Group 21,037 3,380 5,226 8,606 12,303
14 Chemon Ispat Ltd 20,000 16,047 280 16,327 14,403
15 Mosharrof & Brothers Group 19,045 7,257 9,170 16,427 14,227
16 Shaikh Brothers Group 18,783 6,361 12,407 18,768 12,345
17 Karnafuly Foods (Pvt) Ltd. 17,960 15,383 - 15,383 14,497
18 Inherent Trading & Impex 16,300 12,837 115 12,952 -
19 Jamuna Tyre (Group) 16,173 9,614 2,004 11,618 10,677
20 Unitex LP Gas Ltd 15,510 8,519 4,788 13,307 10,115
21 City Group 14,000 7,630 2,222 9,852 6,784
22 GMS Group 13,919 7,557 5,379 12,936 11,251
23 MSA Group 13,420 8,941 3,264 12,205 10,620
24 Aman Group 11,920 9,746 1,475 11,221 14,316
25 East West Property Dev (Pvt) Ltd. 10,400 11,354 - 11,354 11,334
26 Adil Corporation 10,000 10,871 - 10,871 10,670
27 Sadia Traders 10,000 10,834 - 10,834 10,723
28 Globe Edible Oil 9,996 9,225 1,838 11,063 10,914
29 ON Spinning Mills Ltd. 13,919 2,085 9,987 12,072 -
30 Unitex Steel Mills Ltd. 12,500 1,832 - 1,832 -
31 Energyprima Ltd. 12,043 4,776 6,634 11,410 -
32 Naba Farm Ltd. 11,700 7,768 66 7,834 -
33 Afil Group 11,620 1,147 10,528 11,675 -
34 Jalalabad Group 11,065 8,722 2,222 10,944 -
35 Grand Spinning Mills Ltd 11,063 - - - -
36 Delta Group 7,074 10,200 38 10,238 -
37 Noapara Group - - - - 10,492
38 Doreen Group - - - - 1,031
39 Patromax Refinary/ Youth Group - - - - 11,503
Total 667,240 342,289 212,160 554,448 449,271
(*) Gross investments includes profit receivables amount.
(**) Non funded investment without considering conversion factor.

31.12.2022 31.12.2021
Taka Taka
11.7 Classification status - wise investments
Unclassified :
i) Unclassified including staff investment 1,397,458,533,918 1,137,461,274,636
ii) Special mention account (SMA) 9,884,950,814 14,324,613,070
Total unclassified (i+ii) 1,407,343,484,732 1,151,785,887,706
Classified :
iii) Substandard 7,862,650,291 9,019,071,911
iv) Doubtful 5,188,913,638 4,979,992,507
v) Bad and Loss 40,970,448,852 25,388,048,122
Total classified (iii+iv+v) 54,022,012,781 39,387,112,540
Grand total (i to v) 1,461,365,497,513 1,191,173,000,246
11.8 Pledged collaterals against investments
Land & building 1,210,228,451,052 1,197,544,179,510
MTDR, securities, etc. 156,469,383,898 151,364,586,817
Share certificates 343,175,535 343,870,535
Total 1,367,041,010,485 1,349,252,636,862
11.9 Particulars of investments
i) Investments considered good in respect of which the bank is fully secured 1,401,168,075,659 1,142,004,187,894
ii) Investments considered good in respect of which the Bank holds debt- 1,776,874,850 1,164,181,501
ors' personal security
iii) Investments considered good and secured by personal security of one or 58,420,547,004 48,004,630,851
more persons in addition to personal security of debtors
iv) Investments considered bad or doubtful not provided for. - -
Total 1,461,365,497,513 1,191,173,000,246
v) Investments due by directors or employees of the bank or any of them 32,376,228,246 31,015,557,327
either severally or jointly with any other persons
vi) Investments due by directors or employees of the bank are interested as - -
directors, partners, managing agents or in the case of private companies
as members
vii) Total amount of investments, including temporary investments, made 5,695,875,143 5,210,965,526
any time during the year to directors or employees of the bank or any of
them either severally or jointly with any other persons
viii) Total amount of investments, including temporary investments granted - -
during the year to the Companies or firms in which the directors of the
bank are interested as directors, partners, managing agents or, in the
case of private companies as members
ix) Investments due from other banks - -
x) Classified investments:
a) Classified investments on which profit has not been charged 40,970,448,852 25,388,048,122
b) Provision for classified investments 42,073,978,491 37,230,278,491
c) Provision kept against investments classified as bad & loss 41,118,078,491 35,894,675,797
d) Amount credited to profit/ rent /compensation suspense account 43,754,288,943 36,175,187,913
xi) Particulars of written off investments
a) Cumulative amount of investment written off since inception to 31st 12,167,909,201 12,167,909,201
December last year
b) Amount of investment written off during this year - -
c) Total amount written Off (a+b) 12,167,909,201 12,167,909,201
d) Amount recovered against written off investment up to this year (*) 2,054,460,535 1,809,687,124
e) Amount waived against written off investment up to this year 1,050,020,241 1,024,529,187
f) Amount of investment written off against which suit has been filed to recover the same 9,063,428,425 9,333,692,890
(*) During the year of 2022, Tk. 270,264,466/- was recovered from written-off Investments, out of which a sum of
Tk. 25,491,054/- was waived and remaining Tk. 244,773,412/- was recovered from the clients in cash.

11.10 Information about restructured investment as per Bangladesh Bank's BRPD Circular No-4, dated 29 January, 2015
Investment amounting to Tk. 1,874.00 million (outstanding Tk. 1,424.80 million as on 31.12.2022) of 1 (one) investment client
Jamuna Electronics Ltd., Gulshan Br, Dhaka has been restructured. The restructured has been made by extension of validity of term
investment for 12 (twelve) years including 01 (one) year gestation period for Jamuna Electronics Ltd. under the preview of BRPD
Circular No-4, dated 29 January, 2015. The status of the Investment is unclassified and reported as Special Mention Account (SMA)
as per Bangladesh Bank Guidelines.
12.0 Fixed assets including premises (Annexure-A)
31.12.2022 31.12.2021
Taka Taka
12.1 Tangible assets
Land 7,623,650,885 7,623,650,885
Building 6,539,112,354 6,539,112,354
Construction/capital work-in-process - -
Furniture and fixtures 1,728,582,193 1,616,781,352
Mechanical appliances 3,078,275,343 2,953,527,300
Computer 2,307,615,731 2,077,839,123
Motor vehicles 1,631,823,019 1,769,962,030
ATM 3,896,801,136 2,863,680,143
Books 11,547,478 11,457,966
Right of Use- Assets for lease rent 2,380,392,163 2,380,392,163
Total cost of tangible assets including revaluation 29,197,800,302 27,836,403,316
Less: Accumulated depreciation 10,936,728,849 9,674,397,490
Net book value of tangible assets at the end of the year 18,261,071,453 18,162,005,826
12.2 Intangible assets
Computer software 822,847,696 794,801,116
Total cost of intangible assets 822,847,696 794,801,116
Less: Accumulated amortization 646,599,061 578,360,408
Net book value of intangible assets at the end of the year 176,248,635 216,440,708
Total net book value at the end of the year (12.1+12.2) 18,437,320,088 18,378,446,533
12.3 Maturity-wise classification
Up to 1 Month - -
Over 1 month but not more than 3 months - -
Over 3 months but not more than 1 year 774,587,648 957,842,518
More than 5 years 13,175,186,115 14,369,349,170
Total 18,437,320,088 18,378,446,533
12.4 Revaluation of land & building
As per Bangladesh Bank BCD Circular Letter No. 12 & 18 dated April 20, 1993 & June 15, 1993; BRPD Circular No.10 dated
November 24, 2002; circular No. 09 dated 31 December 2008 and circular No. 24 dated 03 August 2010, the Bank revalued its
land and building by the professional valuers for the year 2000, 2002, 2003, 2004, 2005, 2006, 2009 & 2012 respectively which
was reviewed by the statutory auditors.
12(a) Consolidated fixed assets including premises (Annexure-B)
12(a).1 Tangible assets
Islami Bank Securities Limited 11,779,093 10,941,485
Sub-total 18,277,516,083 18,178,495,162
12(a).2 Intangible assets
Islami Bank Bangladesh Limited 176,248,635 216,440,708
Islami Bank Securities Limited 652,942 891,568
Islami Bank Capital Management Limited 952,780 1,275,780
Sub-total 177,854,357 218,608,056
Total 12(a). 1+12(a).2 18,455,370,440 18,397,103,217

31.12.2022 31.12.2021
Taka Taka
13.0 Other assets
i) Income generating other assets - -
ii)Non-income generating other assets
Stock of stationery in hand 203,416,484 214,254,899
Stamps in hand 35,035,860 31,965,815
Advance rent paid 661,059,332 567,441,216
Security deposits account 27,533,605 27,093,579
Suspense 1,108,427,199 862,243,531
Advance against expenses 68,596,347 88,064,884
Pre-paid expense-OBU 80,908,818 7,810,184
Accrued income 3,783,243,517 1,140,782,333
IB General account (Note - 13.3) 19,769,529,631 4,473,863,613
Clearing adjustment 662,046,924 -
mCash adjustment 455,940,995 216,052,386
Dividend income receivable 44,528,510 189,960,227
Master card receivable 10,468,226 -
ATM receivable/UPI Receivable 894,831,852 75,951,181
eWallet Receivable 214,258,232 167,573,738
Agent RDS Receivable 3,765,307 131,850
POS Receivable 95,647,224 113,989,010
Advance against capital expenditure 164,500,000 1,125,280,200
Foreign remittance incentive receivable 3,377,202,877 -
NPS Receivable 775,519,041 -
Others 1,094,467,124 -
Sub-total (ii) 33,530,927,106 9,302,458,646
Total (i+ii) 33,530,927,106 9,302,458,646
13.1 Maturity-wise classification
Up to 1 Month 9,547,854,123 1,542,062,878
Over 1 year but not more than 5 years 6,985,635,106 878,751,019
More than 5 years 991,658,745 198,976,280
Total 33,530,927,106 9,302,458,646
13.2 Classification status of other assets
Unclassified 33,434,076,562 9,074,274,903
Doubtful 10,023,161 30,898,610
Bad/ Loss 86,827,383 197,285,133
Total 33,530,927,106 9,302,458,646
13.3 IB General account
13.3.1 Un-reconciled entries of Inter Branch Transactions in Bangladesh
Age
Upto 3 months 16,235,230,319 4,225,496,674
Over 3 months but not more than 6 months 3,412,204,849 -
Over 6 months but not more than 9 months 108,355,678 -
Over 9 months but not more than 12 months 13,738,785 -
More than 12 months - 112,634,340
Total 19,769,529,631 4,338,131,014

31.12.2022 31.12.2021
Taka Taka
13.3.2 Un-reconciled entries of Inter Branch Transactions outside Bangladesh
Age
Upto 3 months - -
Over 3 months but not more than 6 months - -
Total - -
13(a) Consolidated other assets
Inter-company balances (8,730,616) (159,972,808)
Total 33,740,284,483 9,315,773,066
14.0 Placement from banks & other financial institutions
Borrowing from Abroad- OBU (Note-14.1) 29,305,358,900 17,288,700,000
Borrowing from other Banks in Bangladesh- OBU (Note 14.2) 15,133,010,500 19,476,600,000
Borrowing from Bangladesh Bank (Note 14.3) 143,000,000,000 -
Borrowing from Treasury Division, IBBL -OBU (Note-6.0_OBU) 89,273,462,812 22,149,947,799
Fund obtained by AD branches from OBU for MDB in FC (Note-3.0_OBU) 267,278,973 4,165,626,209
Sub total 276,979,111,185 63,080,874,008
Less: Borrowing from Treasury Division, IBBL- OBU 89,273,462,812 22,149,947,799
Less: Fund obtained by AD branches from OBU for MDB in FC 267,278,973 4,165,626,209
Sub total 89,540,741,785 26,315,574,008
Total 187,438,369,400 36,765,300,000
Fund obtained from OBU for investment in MDB in FC by AD branches is shown under "Cover fund MDB investment" under other
liabilities at AD branches whereas Fund provided to AD branches for MDB in FC is shown under "Placement with banks & other
financial institutions" in the assets side at OBU's balance sheet. As the items are intra-units balance, the amount was fully eliminated
while preparing the financial statement of the Bank as a whole.
14.1 Borrowing from Abroad-OBU

Ras Al Khaimah 6,197,820,000 1,115,400,000
Abu Dhabi Bank, UAE 2,034,950,900 1,501,500,000
First Gulf UAE 1,756,049,000 858,000,000
Dubai Islamic Bank 1,549,455,000 6,006,000,000
Emirates Islamic Bank, UAE 1,032,970,000 429,000,000
Emirates NBD Bank, UAE 1,032,970,000 858,000,000
Ajman Bank, UAE 9,813,215,000 -
Commercial Bank Of Dubai 2,065,940,000 -
Bank of Khartoum 1,239,564,000 -
The Saudi National Bank, Bahrain 1,032,970,000 -
Bank Du Cairo 1,032,970,000 -
Bank Sinopac,Taiwan 516,485,000 -
SCB UAE - 2,574,000,000
ICIC Bank, Mumbai - 2,574,000,000
Commercial Bank of Doha, UAE - 1,372,800,000
Total 29,305,358,900 17,288,700,000

31.12.2022 31.12.2021
Taka Taka
14.2 Borrowing from other Banks in Bangladesh
Bank Asia Ltd. 5,164,850,000 2,574,000,000
The City Bank Ltd. 1,549,455,000 2,316,600,000
NCC Bank Ltd. 1,084,618,500 943,800,000
SIBL 206,594,000 1,287,000,000
Jamuna Bank Ltd. 206,594,000 514,800,000
Commercial Bank of Ceylon 2,582,425,000 -
First Security Islami Bank Ltd. 1,549,455,000 -
EXIM Bank Ltd. 1,549,455,000 -
Trust Bank Ltd. 1,239,564,000 -
Dhaka Bank Ltd. - 3,861,000,000
BRAC Bank Ltd. - 2,574,000,000
Pubali Bank Ltd. - 2,402,400,000
Southeast Bank Ltd. - 1,287,000,000
Al Arafah Islami Bank Ltd. - 858,000,000
Dutch Bangla Bank Ltd. - 429,000,000
One Bank Ltd. - 429,000,000
Total 15,133,010,500 19,476,600,000
14.3 Borrowing from Bangladesh Bank
Bangladesh Government Islamic Investment Bond (BGIIB) 113,000,000,000 -
Bangladesh Government Investment Sukuk (BGIS) 30,00,00,00,000 -
Total 143,000,000,000 -
14(a) Consolidated placement from banks & other financial institutions
Total 187,438,369,400 36,765,300,000
15.0 Deposits & other accounts
Mudaraba savings deposits (Note-15.1) 445,565,352,259 476,757,049,557
Other mudaraba deposits (Note-15.2) 288,022,176,295 282,106,861,930
Al-wadeeah current and other deposit accounts (Note-15.3) 153,259,252,714 125,924,721,060
Bills payable (Note-15.4) 10,288,421,539 8,117,488,474
Total 1,410,445,429,339 1,381,979,529,497
15.1 Mudaraba Savings Deposits
Mudaraba Savings Deposits 426,858,238,658 453,872,944,223
Mudaraba Savings Deposits (RDS) 10,928,580,175 9,782,901,789
Mudaraba School Student Savings Deposits 5,140,481,942 4,661,732,574
Mudaraba Farmers Savings Deposits 2,113,625,314 2,108,911,364
Mudaraba Industry Employee Savings Deposits 322,004,789 292,559,404
Mudaraba Priority Savings 10,493,480 5,913,157,640
Mudaraba Payroll Savings 191,927,901 124,842,562
Total 445,565,352,259 476,757,049,557
15.2 Other mudaraba deposits
Mudaraba Special Notice Deposits 17,596,991,940 19,783,364,255
Mudaraba Hajj Deposits 5,678,940,459 5,122,765,337
Mudaraba Savings Bond 9,527,116,786 13,232,849,761
Mudaraba NRB Savings Bond 658,885,212 738,455,237
Mudaraba Special Savings (Pension) Deposits 154,141,092,164 152,248,842,866
Mudaraba Monthly Profit Deposit Scheme 58,169,753,190 56,257,734,311
Mudaraba Muhor Savings 832,982,189 827,172,133
Mudaraba Waqf Cash Deposit 1,984,260,655 1,674,699,254
Mudaraba Upahar Deposit Scheme 24,516,225 19,824,371
Mudaraba FC Deposit 37,487,587,780 32,190,367,048
Mudaraba FC Deposit -Exporters Retention Quota (ERQ) 7,984,597 10,787,357
Mudaraba Bibaho Savings Deposits 136,766,601 -
Mudaraba Senior Citizens 1,694,269,577 -
Mudaraba Education Saving 33,776,902 -
Mudaraba Expatriate Housing 47,252,019 -
Total 288,022,176,295 282,106,861,930

31.12.2022 31.12.2021
Taka Taka
15.3 Al Wadeeah current and other deposits accounts
Al Wadeeah Current Deposits 73,719,186,619 72,686,973,240
Convertible Taka Account 151,708 151,708
Non Resident Investors Taka Account 379,923,794 359,101,358
Non Resident FC of Exchange House / Banks 1,565,811,723 864,964,228
Non Resident FC of Exchange House/ Banks-OBU (Note-2.0_OBU) 260,151,791 173,081,459
Non Resident Taka Account 6,048,594,705 3,733,866,443
Foreign Currency Deposit 717,781,518 247,889,335
Foreign Currency Deposit ERQ 1,436,216,278 2,006,319,006
Other FC Deposit 47,289,688 40,293,595
Foreign Currency: Security Deposit 177,856,927 139,147,276
Foreign Currency Held against Back to Back L/C 6,660,921,685 4,237,746,613
Foreign Currency held against Cash L/C 6,401,459,179 3,131,431,762
Foreign Demand Draft /TT Payable 522,208,372 651,122,095
Foreign Currency Deposit against Foreign Bank Guarantee 41,254,239 34,266,375
Resident Foreign Currency Deposit 2,596,423 357,450
Profit Payable 18,526,128,127 15,008,013,954
Remittance Card Account 288,263 311,763
Sundry Deposits (Note-15.3.1) 35,455,028,967 22,582,925,183
FC Deposit of EPZ Enterprises 190,737,081 19,930,481
Mobile Wallet Deposit 1,365,817,418 179,909,195
Sub total 153,519,404,505 126,097,802,519
Less: Non Resident FC of Exchange House/Banks-OBU 260,151,791 173,081,459
Total 153,259,252,714 125,924,721,060
15.3.1 Break-up of sundry deposits
Sundry creditors 457,313,592 149,509,262
Supervision charge 102,103,969 13,957,583
Security deposit L/G 10,425,503 4,904,029
Security money payable 110,559,642 164,304,352
Security money locker 30,215,696 28,019,536
Marginal deposit 1,602,721,790 1,344,150,406
Closed account profit 268,420,263 184,896,383
Sundry deposit others 2,102,691,399 1,165,055,311
Govt. Tax & VAT 4,808,899,639 3,443,020,362
Security Deposit - Investment 12,914,887 13,932,908
Security Deposit - L/C (Wes) 4,526,913 3,334,913
Security Deposit - Foreign L/C General 24,121,355,244 14,575,028,900
Security Deposit - Bank Guarantee 1,654,015,335 1,316,441,013
Security Deposits - Foreign Bill Negotiation (FBN)/MDB - 209,422
Security Deposit - IBP 145,486 148,486
Security Deposit - Inland L/C 96,547,169 67,461,280
Cash & Fixed assets insurance fund 66,707,852 63,166,779
Other earnings (Note-15.3.1.1) 5,464,588 45,384,257
Total 35,455,028,967 22,582,925,183
15.3.1.1 Break-up of other earnings
Opening balance 45,384,257 16,185,813
Received from B. Bank FC clearing A/c 6,528,530 50,591,110
Received from foreign correspondents/banks - -
Total receipt during the year 6,528,530 50,591,110
Total available balance 51,912,787 66,776,923
Less:
Income tax provision @ 37.50% 2,448,199 18,971,666
Transferred/ paid for charitable activities 44,000,000 2,421,000
Closing balance 5,464,588 45,384,257

31.12.2022 31.12.2021
Taka Taka
15.4 Bills payable
P.O. payable 7,789,272,121 6,373,873,742
T.T. payable 1,138,282 1,133,681
D.D. payable 48,487,126 52,512,861
BEFTN, RTGS EFT & ACS payable 2,222,675,219 256,389,029
Spot cash payable 226,848,790 193,760,075
Foreign remittance incentive payable - 1,239,819,086
Total 10,288,421,539 8,117,488,474
15.5 Maturity wise classification of deposits (other than inter-Bank deposit)
Re-payable on demand 249,899,800,000 132,050,351,113
Re- payable within 1 month 16,321,725,406 113,602,427,492
Over 3 months but within 6 months 348,796,100,000 184,209,801,158
Over 5 years but within 10 years 84,843,874,877 147,369,922,650
Unclaimed Deposits for 10 years or more 103,425,123 104,806,721
Sub-total 1,403,503,834,910 1,380,169,360,822
15.6 Maturity grouping of Inter- bank deposits are as under
Re-payable on demand - -
Re- payable within 1 month 6,941,594,429 1,810,168,675
Over 1 month but within 6 months - -
Over 6 months but not more than 1 year - -
Over 1 year but not more than 5 years - -
Over 5 years but within 10 years - -
Sub-total 6,941,594,429 1,810,168,675
Total (15.5+15.6) 1,410,445,429,339 1,381,979,529,497
15.7 Other banks' deposits with IBBL
Al Wadeeah Current Deposits 187,392,999 112,161,161
Mudaraba Special Notice Deposits 1,224,928,049 817,185,547
Mudaraba Savings Account 15,378,437 15,031,967
Mudaraba Term Deposits Receipt 5,513,894,944 865,790,000
Total 6,941,594,429 1,810,168,675
15.8 Sector wise break up of deposits and other accounts
Government 751,589,000 523,554,000
Other banks' deposit 6,941,594,429 1,810,168,675
Other public 1,416,789,000 5,999,909,000
Foreign currency 55,259,705,491 43,574,622,622
Private 1,346,075,751,418 1,330,071,275,200
Total 1,410,445,429,339 1,381,979,529,497
15(a) Consolidated deposits & other accounts
Islami Bank Bangladesh Limited 1,410,445,429,339 1,381,979,529,497
Total 1,409,314,554,809 1,380,849,221,889
16.0 Mudaraba Bond
Perpetual Bond (Note-16.1) 11,000,000,000 10,175,840,000
Redeemable Subordinated Bond (Note-16.2) 20,000,000,000 20,600,000,000
Total 31,000,000,000 30,775,840,000
16.1 Perpetual Bond
Mudaraba Perpetual Bond (*) 3,000,000,000 3,000,000,000
Mudaraba Perpetual Contingent Convertible Bond (Note- 16.1.1) 8,000,000,000 7,175,840,000
Total 11,000,000,000 10,175,840,000
(*) Security pledged against Mudaraba Perpetual Bond (MPB) 4,489,100,000 4,489,100,000

31.12.2022 31.12.2021
Taka Taka
16.1.1 Mudaraba Perpetual Contingent Convertible Bond
Private Placement (Note-16.1.1.1) 7,200,000,000 6,375,840,000
Public Subscription 800,000,000 800,000,000.00
Total 8,000,000,000 7,175,840,000
16.1.1.1 Private placement
Standard Bank Limited 2,305,840,000 2,305,840,000
Al-Arafah Islami Bank Limited 2,000,000,000 2,000,000,000
Shahjalal Islami Bank Limited 1,000,000,000 1,000,000,000
Trust Bank Limited 1,000,000,000 1,000,000,000
Quality Feeds Limited 70,000,000 70,000,000
EXIM Bank Employees' Gratuity Fund 494,160,000 -
United Commercial Bank Limited (PLC) 230,000,000 -
Pubali Bank Limited 100,000,000 -
Total 7,200,000,000 6,375,840,000
16.2 Redeemable Subordinated Bond
Private Placement (Note-16.2.1) 20,000,000,000 20,600,000,000
Public Subscription - -
Total 20,000,000,000 20,600,000,000
16.2.1 Private placement
Agrani Bank Limited 5,300,000,000 6,500,000,000
EXIM Bank of Bangladesh Limited 3,000,000,000 4,000,000,000
Sonali Bank Limited 1,720,000,000 2,200,000,000
Shahjalal Islami Bank Limited 1,880,000,000 2,200,000,000
Rupali Bank Limited 1,600,000,000 1,800,000,000
Dutch-Bangla Bank Limited 2,000,000,000 1,000,000,000
Eastern Bank Limited 1,000,000,000 1,000,000,000
Pubali Bank Limited 400,000,000 600,000,000
Square Pharmaceuticals Limited 500,000,000 500,000,000
Southeast Bank Limited 300,000,000 400,000,000
Dhaka Bank Limited 300,000,000 400,000,000
Al-Arafah Islami Bank Limited 2,000,000,000 -
Total 20,000,000,000 20,600,000,000
17.0 Other liabilities
Provision for classified & unclassified investments and off- balance sheet 59,880,560,000 53,271,956,784
items (Note- 17.1)
Provision for diminution in value of investments in shares (Note - 17.2) 326,413,888 157,000
Other provisions (Note- 17.3) 185,230,754 445,731,199
Compensation account (Note- 17.5) 7,180,881,364 5,816,920,339
Profit/rent/compensation suspense (Note- 17.6) 43,754,288,943 36,175,187,913
Current tax (Note-17.7) 16,671,765,872 13,369,984,273
Zakat payable (Note-17.8) 296,935,239 1,287,595,551
Foreign correspondents charges 33,971,209 21,468,485
Incentive bonus payable 1,635,876,929 1,362,929,501
Payable against expenditure 319,735,497 262,755,460
Clearing adjustment - 89,064,280
Transfer delivery adjustment 32,360 45,748
BEFTN adjustment 45,575,417 40,999,276
Payable to Benevolent Fund, GF & SAF - 500
F.C. Payable for IBBL Cards 12,860,044 14,413,410
Unclaimed dividend (Note-17.9) 17,384,465 23,179,157
Stimulus Fund: Covid-19 564,908,643 1,977,282,570
Agri. Refinance: Covid-19 4,261,863,357 3,050,854,392
Cover Fund HPSM FC-GTF 2,077,047,528 1,236,788,150
Automated Challan System 3,694,206 1,822,164
Lease obligation on ROU assets 1,149,866,656 1,394,471,864
Start-Up Fund for investment (Note-17.10) 150,836,566 91,602,110
Others 1,006,010,164 392,635,545
Total 139,575,739,102 120,327,845,671

31.12.2022 31.12.2021
Taka Taka
17.1 Provision for classified & unclassified investments and off- balance sheet items
General provision
Unclassified investments excluding OBU 11,848,641,509 10,408,008,293
Sepcial General Provision COVID-19 2,369,840,000 2,800,000,000
Unclassified investments- OBU 1,376,970,000 556,410,000
Special mention account 75,100,000 93,210,000
Sub-total (Note-17.1.1) 15,670,551,509 13,857,628,293
Off-balance sheet items (Note-17.1.2) 2,136,030,000 2,184,050,000
Sub-total (General provision) 17,806,581,509 16,041,678,293
Specific provision (Note-17.1.3)
Sub-standard 505,600,000 972,150,844
Doubtful 450,300,000 363,451,850
Bad and loss (*) 41,118,078,491 35,894,675,797
Sub-total (Specific provision) 42,073,978,491 37,230,278,491
Total provision held at the end of the year 59,880,560,000 53,271,956,784
(*) As on 31 December 2022 provision of Tk. 23,635.88 million against Ananda Shipyard & Slipways Ltd., writ clients,
rescheduled clients & restructured clients (considering qualitative judgment) is included in the specific provision (Bad & Loss)
of Tk. 41,118.08 million against Tk. 24,902.75 million as on 31 December 2021.
Adequate provision for the investments, off-balance sheet items and other assets have been made as per the relevant circulars issued
by Bangladesh Bank as well as decision taken in tripartite meeting amongst Bangladesh Bank Inspection Team, External Auditors
and the Management of Islami Bank Bangladesh Limited and subsequent Bangladesh Bank Letter No.DBI-6/51(1)/2023-361
dated 26 April 2023.
17.1.1 General provision on unclassified investment including OBU
Provision held at the beginning of the year 13,857,628,293 10,253,558,293
Provision made/(no longer required) during the year 1,812,923,216 3,604,070,000
17.1.2 General provision on off-balance sheet items
Provision made/(no longer required) during the year (48,020,000) 616,960,000
Sub-total (17.1.1+17.1.2) 17,806,581,509 16,041,678,293
17.1.3 Provision for classified investments
Fully provided investment written off/waived/transferred (Note-17.1.3.1) (1,100,227) (12,904,040)
Recoveries of amounts previously written off 244,773,412 93,360,314
Provision made/ (no longer required) during the year 4,600,026,815 851,893,726
Total provision for investments (17.1.1+17.1.3) 57,744,530,000 51,087,906,784
Total provision (17.1.1+17.1.2+17.1.3) 59,880,560,000 53,271,956,784
17.1.3.1 Fully provided investment written off/waived/transferred
Written-off during the year - -
Compensation waived upto 2013 which was included in provision 1,100,227 12,904,040
Total 1,100,227 12,904,040
17.1.4 Provision made for investments & off- balance sheet items for the year
Provision for classified investments 4,600,026,815 851,893,726
General provision on unclassified investment including OBU 2,243,083,216 2,704,070,000
Sepcial General Provision Covid-19 (430,160,000) 900,000,000
General provision on off-balance sheet items (48,020,000) 616,960,000
Total provision made during the year 6,364,930,031 5,072,923,726

17.1.5 Total Provision Requirement and maintained for investments including off balance sheet items at the end of year 2022
Maintained
Required Provision
Particulars Provision for 2022
for 2022 (Taka)
(Taka)
General provision on unclassified investment including OBU 15,670,060,000 15,670,560,000

Provision for classified investments 17,838,080,000 17,838,080,000
Provision for investments considering qualitative judgment 24,235,890,000 24,235,890,000
Total provision for investment 57,744,030,000 57,744,530,000
General provision on off-balance sheet items 2,136,030,000 2,136,030,000
Total provision for investment including off balance sheet items at the end of the year 59,880,060,000 59,880,560,000
Provision surplus/(deficit) for the year 2022 500,000
31.12.2022 31.12.2021
Taka Taka
17.2 Provision for diminution in value of investments in shares

Opening balance 157,000 5,157,000
Add: Provision made/(adjustment) during the year 326,256,888 (5,000,000)
Closing balance (Note-17.2.1) 326,413,888 157,000
17.2.1 Provision for diminution in value of investments in shares(*)
i) Dealing securities
Quoted 261,975,310 (94,834,111)
Un-quoted 64,281,578 (38,258,652)
Sub-total 326,256,888 (133,092,763)
Required provision (i) 326,256,888 -
ii) Investment securities
Quoted - -
Un-quoted 157,000 157,000
Sub-total (ii) 157,000 157,000
Total (i+ii) 326,413,888 157,000
(*) As per DOS Circular No.03 dated 12.03.2015 & DOS Circular No.10 dated 28.06.2015, there is no requirement of provision
for Mutual funds (considering NAVcmp 95% for open-end mutual fund & 85% for closed-end mutual fund); rather a surplus
of Tk. 35,318,422 exists in un-realized gain. On the other hand, as per directions regarding preparation of Financial Statements
in Clause no. 38 (Sub-Clause 4/Kha of First Schedule) of Bank Company Act, 1991 (Amended up-to 2018), required provision
against shares other than Mutual Funds comes to Tk. 361,575,310. Finally, netting-off un-realized gain and diminution of values
in securities as per DOS Circular No.04 dated 24.11.2011, the ultimate requirement of provision for Capital Market Investment
is Tk. 326,256,888. Additionally, provision for Tk. 157,000.00 is required for de-listed securities of Bangladesh Aroma Tea Co.
17.2(a) Consolidated provision for diminution in value of investments in shares made during the year
Islami Bank Bangladesh Limited 326,256,888 (5,000,000)
Total 483,145,333 313,776,730
17.3 Other provisions
Provision for other assets (Note-17.3.1) 93,811,693 212,734,438
Provision for doubtful income account (Note-17.3.2) 91,419,061 232,996,761
Total 185,230,754 445,731,199
17.3.1 Provision for other assets
Opening balance 212,734,438 244,261,361
Less: Settlement - -
Add: Provision made/(adjustment) during the year (118,922,745) (31,526,923)
Closing balance 93,811,693 212,734,438
Provision on other assets have been made as per BRPD circular no-04 dated 12 April 2022

31.12.2022 31.12.2021
Taka Taka
17.3.2 Provision for doubtful income account
Opening balance 232,996,761 161,883,663
Add: Provision made during the year 82,222,300 76,728,018
Less: Expended for charitable purposes 223,800,000 5,614,920
Closing balance 91,419,061 232,996,761
17.4 Other provisions made for the year
Provision for other assets (118,922,745) (31,526,923)
Provision for doubtful income account 82,222,300 76,728,018
Others - -
Total (36,700,445) 45,201,095
17.5 Compensation account
Opening balance 5,816,920,339 4,411,863,867
Addition during the year 3,420,945,640 2,970,170,356
Sub total 9,237,865,979 7,382,034,223
Less: Income tax provision @ 37.50% 1,282,854,615 1,113,813,884
Less: Expended for charitable activities 774,130,000 451,300,000
Closing balance 7,180,881,364 5,816,920,339
17.6 Profit/rent/compensation suspense
Profit/rent suspense (Note-17.6.1) 3,781,865,141 3,596,249,597
Compensation suspense (Note-17.6.2) 39,972,423,802 32,578,938,316
Total 43,754,288,943 36,175,187,913
17.6.1 Profit/rent suspense
Balance at the beginning of the year 3,596,249,597 3,596,873,930
Amount transferred to suspense account during the year 450,436,666 349,763,375
Amount transferred to investment income during the year (208,232,957) (288,447,684)
Amount written-off during the year - -
Amount waived during the year (56,588,165) (61,940,024)
Balance at the end of the year 3,781,865,141 3,596,249,597
17.6.2 Compensation suspense
Balance at the beginning of the year 32,578,938,316 26,010,671,169
Amount transferred to suspense account during the year 10,018,632,691 7,944,471,807
Amount transferred to compensation income during the year (1,584,977,205) (727,844,628)
Amount written-off during the year - -
Amount waived during the year (1,040,170,000) (648,360,032)
Balance at the end of the year 39,972,423,802 32,578,938,316
17.7 Current tax liability
Balance of provision on 01 January 22,021,038,824 20,293,070,116
Add: Provision made during the year (Note 17.7.1) 8,768,960,631 6,800,304,448
Add: Other provision made during the year 1,285,302,814 1,132,785,550
Less: Settlement for previous year 6,793,297,250 6,205,121,290
Total (a) 25,282,005,019 22,021,038,824
Advance income tax paid
Balance of advance tax on 01 January 8,651,054,551 7,604,358,763
Add: Payment made during the year 6,752,481,846 7,251,817,078
Less: Settlement for previous year 6,793,297,250 6,205,121,290
Total (b) 8,610,239,147 8,651,054,551
Net balance as at 31 December (a-b) 16,671,765,872 13,369,984,273

31.12.2022 31.12.2021
Taka Taka
17.7.1 Provision for current tax made during the year
Income tax @ 37.50% on taxable profit (A) 8,713,239,736 6,700,058,787
Add: Income tax @ 20% on dividend income 43,144,247 72,570,015
Capital Gain @ 10% 12,576,648 27,675,646

Estimated provision required as at 31 December 8,768,960,631 6,800,304,448
Computation of taxable profit
Profit before tax 14,592,921,537 11,441,284,869
Less: Dividend income 215,721,237 362,850,073
Less: Capital Gain 125,766,484 276,756,459
Profit before tax (excluding dividend income and capital gain) 14,251,433,816 10,801,678,337
Add: Inadmissible expenditure 10,381,373,671 8,482,381,843
Less: Further allowable expenditure 1,397,501,525 1,417,236,750
Estimated taxable profit for the year (A) 23,235,305,962 17,866,823,431
Provision for tax for the year ended on 31.12.2022 has been made as per Income Tax Ordinance, 1984 applying prevailing
rates applicable on the net profit. Income tax assessments have been completed by the Deputy Commissioner of Taxes up to the
accounting year 2020 and income tax return has been submitted for the year 2021. The Bank filed appeals/ writ petitions against
tax assessment orders of different levels of tax authorities to the appropriate tax authorities and High Court on different disputed
issues. Adequate provisions for those assessment years have been made in the books of accounts.
17.7.2 Reconciliation of effective tax rate

2022 2021
Particulars
% Taka % Taka
Profit before income tax as per profit and loss account 14,592,921,537 11,441,284,869
Income Tax using the domestic corporate tax rate 37.50% 5,472,345,576 37.50% 4,290,481,826
Factors affecting the tax charge for current year:
Non deductible expenses 26.68% 3,893,015,127 27.80% 3,180,893,191
Tax exempt income -3.59% (524,063,072) -4.65% (531,463,781)
Tax savings from reduced tax rates from dividend -0.50% (72,337,000) -1.22% (139,606,789)
Total income tax expenses 60.09% 8,768,960,631 59.44% 6,800,304,447
31.12.2022 31.12.2021
Taka Taka
17.7(a) Consolidated current tax made during the year
Total 8,870,670,581 6,936,163,283
17.8 Zakat payable
Opening balance 1,287,595,551 1,258,687,787
Addition during the year 970,999,128 894,913,964
Total 2,258,594,679 2,153,601,751
Less: expended for charitable activities 1,961,659,440 866,006,200
Closing balance 296,935,239 1,287,595,551
17.9 Unclaimed dividend
Dividend remained unclaimed which were declared for the year:
Before 2017 - -
2017 2,831,352 4,306,829
2018 2,792,633 4,419,435
2019 3,601,924 5,206,610
2020 3,652,417 9,246,283
2021 4,506,139 -
Total 17,384,465 23,179,157

31.12.2022 31.12.2021
Taka Taka
17.10 Start-Up Fund for investment
Opening balance 91,602,110 147,982,214
Amount transferred to retained earnings for excess provision in previous year - (102,772,133)
Revised balance 91,602,110 45,210,081
Provision made during the year 59,234,456 46,392,029
Closing balance 150,836,566 91,602,110
The Bank has created Start-Up Fund for investment in 2020 as per SMESPD Circular no. 04, dated 29 March 2021. Later on
Bangladesh Bank issued a revised SMESPD Circular Letter no. 05, dated 26 April 2021 to create fund 1% of Net Profit instead
of Operating Profit of the Bank. To comply the same in the year 2021 Tk. 102,772,133 was transferred to retained earnings
from Start-up Fund of 2020.
17.11 Maturity-wise classification of other liabilities
Up to 1 Month 3,140,500,000 2,466,987,052
More than 5 years 120,145,339,102 86,259,929,244
Total 139,575,739,102 120,327,845,671
17(a) Consolidated other liabilities

Total 139,924,699,279 120,971,862,923
18.0 Deferred tax (assets)/liabilities
Deferred tax assets and liabilities have been recognised and measured in accordance with the provision of International
Accounting Standard (IAS)-12 "Income Taxes" and BRPD circular No. 11 dated 12 December 2011. Calculation of deferred
tax has been made on all temporary differences between the tax base and carrying amounts for financial reporting purpose.
Deferred tax assets and liabilities are attributable to the following:
(i) Deferred tax on fixed assets excluding revaluation surplus
Carrying amount 6,344,997,627 5,870,748,352
Tax Base 5,834,236,255 5,094,694,390
Temporary timing difference 510,761,372 776,053,962
Deferred tax (asset)/liability @ 37.50% 191,535,515 291,020,236
Opening balance 291,020,236 345,492,696
Deferred tax (income)/expenses (99,484,721) (54,472,460)
(ii) Deferred tax on revaluation reserve of Building
Carrying amount 3,322,447,163 3,407,638,115
Tax Base - -
Temporary timing difference 3,322,447,163 3,407,638,115
Deferred tax (asset)/liability @ 37.50% 1,245,917,686 1,277,864,293
Opening balance 1,277,864,293 1,310,630,044
Transfer to /from reserve (31,946,607) (32,765,751)
(iii) Deferred tax on revaluation reserve of securities (HTM)
Carrying amount 230,600,000 161,056,000
Tax Base 20,000,000 20,000,000
Temporary timing difference 210,600,000 141,056,000
Deferred tax (asset)/liability @ 10.00% 21,060,000 14,105,600
Opening balance 14,105,600 8,012,800
Transfer to /from reserve 6,954,400 6,092,800

31.12.2022 31.12.2021
Taka Taka
iv) Deferred tax on provision for Rebate for good borrowers
Carrying amount - -
Tax Base - -
Temporary timing difference - -
Deferred tax (asset)/liability @ 37.50% - -
Opening balance - (56,250,000)
Deferred tax (income)/expenses - 56,250,000
(v) Net deferred tax (income)/expenses (i+iv) (99,484,721) 1,777,540
(vi) Net deferred tax (assets)/liabilities (i+ii+iii+iv) 1,458,513,201 1,582,990,129
(vii) Net deferred tax transferred to reserve (ii) (31,946,607) (32,765,751)
(viii) Net deferred tax transferred from reserve (iii) 6,954,400 6,092,800
18(a) Consolidated Deferred tax (assets)/liabilities
Islami Bank Securities Limited (2,447,928) (2,668,079)
Total 1,456,384,003 1,580,687,903
18(b) Consolidated Deferred tax (income)/expenses for the year 2022 (Taka) 2021 (Taka)
Islami Bank Bangladesh Limited (99,484,721) 1,777,540
Islami Bank Capital Management Limited (47,123) 331,472
Total (99,311,693) 2,174,232
19.0 Share capital

19.1 Authorized capital
The authorized capital of the Bank is Tk. 20,000,000,000 divided into 2,000,000,000 ordinary shares of Tk. 10 each.
19.2 Brief history of raising of Paid up capital
Paid-up Capital of the Bank at the end of the year 2022 is Tk. 16,099,906,680 divided into 1,609,990,668 ordinary shares of Tk. 10 each.
Total allot- Total Paid-
No. of shares Date of Face ted Shares up Capital
Year Remaks
allotted issue Value (Cumulative (Cumulative
Figure) Figure)
500 13.03.1983 1,000 500 500,000 1983 Initial Capital
9,000 23.03.1983 1,000 9,500 9,500,000 1983 Sponsors subscription
2,500 23.03.1983 1,000 12,000 12,000,000 1983 Local Placement Holders subscription
56,000 23.03.1983 1,000 68,000 68,000,000 1983 Foreign Placement Holders subscription
Subscribed Bangladesh Bank on behalf of

the Government of the Peoples Republic of
4,000 10.04.1984 1,000 72,000 72,000,000 1984
Bangladesh 10.04.1984 as per approval of the
Controller of Capital Issues dated 14.03.1983
8,000 22.08.1985 1,000 80,000 80,000,000 1985 IPO subscription on 22.08.1985
80,000 12.03.1990 1,000 160,000 160,000,000 1990 1st Rights -1989 (1R:1)
160,000 06.10.1996 1,000 320,000 320,000,000 1996 2nd Rights -1996 (1R:1)
320,000 01.03.2001 1,000 640,000 640,000,000 2000 3rd Rights 2000 (1R:1)
1,280,000 08.11.2003 1,000 1,920,000 1,920,000,000 2003 4th Rights 2003 (2R:1)
384,000 27.10.2004 1,000 2,304,000 2,304,000,000 2003 Bonus - 2003 (1B:5) – Stock Dividend @20%
460,800 17.11.2005 1,000 2,764,800 2,764,800,000 2004 Bonus -2004 (1B:5) – Stock Dividend @20%

Total allot- Total Paid-
No. of shares Date of Face ted Shares up Capital
Year Remaks
allotted issue Value (Cumulative (Cumulative
Figure) Figure)
950,400 30.09.2008 1,000 4,752,000 4,752,000,000 2007 Bonus - 2007 (1B:4) – Stock Dividend @25%
IBBL Shares have been changed from
30.11.2008 100 47,520,000 4,752,000,000 2008 Tk.1,000/- to Tk.100/- with a market lot of 10
shares with effect from 30.11.2008
14,256,000 15.09.2009 100 61,776,000 6,177,600,000 2008 Bonus - 2008 (3B:10) – Stock Dividend @30%
12,355,200 02.06.2010 100 74,131,200 7,413,120,000 2009 Bonus 2009 (1B:5) – Stock Dividend @20%
25,945,920 25.05.2011 100 100,077,120 10,007,712,000 2010 Bonus 2010 (35B:100) – Stock Dividend @35%
IBBL Shares have been changed from Tk.100/-
04.12.2011 10 1,000,771,200 10,007,712,000 to Tk.10/- with a market lot of 100 shares with
effect from 04.12.2011
250,192,800 27.05.2012 10 1,250,964,000 12,509,640,000 2011 Bonus - 2011 (1B:4) – Stock Dividend @25%
Total 1,609,990,668 16,099,906,680
19.2.1 The Paid-up Capital of the Bank is Tk.16,099,906,680 divided into 1,609,990,668 ordinary shares of Tk.10 each fully subscribed by:
No. of Shares as on 31.12.2022 31.12.2021

Particulars % of Total
31 Dec, 2022 Amount in Taka Amount in Taka
(i) Sponsors/ promoters* 886,481,611 55.0613% 8,864,816,110 8,262,022,660
(ii) General public 723,488,740 44.9374% 7,234,887,400 7,837,680,850
(iii) Government of the People's Republic of 20,317 0.0013% 203,170 203,170
Bangladesh**
Total 1,609,990,668 100.00% 16,099,906,680 16,099,906,680

* As per the requirement of Regulation no. 2(1)(r) of Dhaka Stock Exchange (Listing) Regulations, 2015 and Chittagong Stock
Exchange (Listing) Regulations, 2015, the Shares holding by Sponsors/promoters of Foreign directors have been shifted to Gen-
eral public categories.
** The shares have already been sold by the Government of Bangladesh but no transfer has yet been made in share register of
the Bank.
19.2.2 Break up of share holding and percentage thereof as on 31.12.2022

No. of Total Holdings/ Percentage
Holdings
Shareholders No. of Shares (%)
Less than 500 Shares 14,215 2,178,230 0.1353%
500 to 5,000 Shares 9,574 16,040,391 0.9963%
5,001 to 10,000 Shares 1,176 8,585,660 0.5333%
10,001 to 20,000 Shares 603 8,693,019 0.5399%
20,001 to 30,000 Shares 238 5,811,369 0.3610%
30,001 to 40,000 Shares 104 3,615,258 0.2246%
40,001 to 50,000 Shares 87 4,042,043 0.2511%
50,001 to 100,000 Shares 142 10,593,786 0.6580%
100,001 to 1,000,000 Shares 187 59,304,176 3.6835%
Over 1,000,000 Shares 62 1,491,126,736 92.6171%
Total 26,388 1,609,990,668 100.00%

20.0 Capital adequacy as per Basel - III as on 31 December 2022
The Calculation of Capital to Risk-weighted Assets Ratio (CRAR) of the Bank has been done as per the revised guidelines on
Guidelines of Risk based Capital Adequacy (Revised Regulatory Capital Framework for Banks in line with Basel-III) issued by
Bangladesh Bank vide BRPD Circular No. 18 dated 21.12.2014. Detail calculation of Capital Adequacy as per Basel-III as on
December 31, 2022 is given below:
20.1 A. Regulatory capital 31.12.2022 31.12.2022 31.12.2021
(Consolidated) (Solo) (Consolidated)
Tier-1 (Going Concern Capital) (Note-20.1.1) 71,140.82 69,731.86 66,470.19

Tier-2 (Gone Concern Capital) (Note-20.1.2) 33,006.58 33,006.58 33,041.68
Total regulatory capital 104,147.40 102,738.44 99,511.87
20.1.1 Tier-1 (Going Concern Capital)
Common Equity Tier-1 (CET-1) (Note-20.1.1.1) 60,140.82 58,731.86 56,294.35
Additional Tier (AT-1) (Note-20.1.1.2) 11,000.00 11,000.00 10,175.84
Total Tier-1 (Going Concern Capital) 71,140.82 69,731.86 66,470.19
20.1.1.1 Common Equity Tier-1 (CET-1)
Fully paid-up capital/capital deposited with BB 16,099.91 16,099.91 16,099.91
Statutory reserve 21,735.47 21,735.47 20,735.47
Non-repayable share premium account 1.99 1.99 1.99
General reserve 19,484.57 19,428.76 16,891.56
Retained earnings 2,962.83 1,609.99 2,749.58
Non-controlling interest in subsidiaries 0.30 - 0.28
Non-cumulative irredeemable preferences shares - - -
Dividend equalization account 32.00 32.00 32.00
i. Sub total 60,317.07 58,908.11 56,510.79
Deductions from Tier-1 (Going Concern Capital)
Book value of goodwill/intangible assets 176.25 176.25 216.44
Shortfall in provisions required against classified assets - - -
Shortfall in provisions required against investment in shares - - -
Remaining deficit on account of revaluation of investment in - - -
securities after netting off from any other surplus on the securities.
Reciprocal crossholdings of bank capital /subordinated debt - - -
Any investment exceeding the approved limit - - -
ii. Sub total 176.25 176.25 216.44
Total eligible CET-1 (i-ii) 60,140.82 58,731.86 56,294.35
20.1.1.2 Additional Tier-1 Capital (AT-1)
Mudaraba Perpetual and Perpetual Contingent Convertible Bond 11,000.00 11,000.00 10,175.84
Total AT-1 11,000.00 11,000.00 10,175.84
20.1.2 Tier-2 (Gone Concern Capital)
General provision (unclassified investment and off balance sheet exposure) 17,806.58 17,806.58 16,041.68
Mudaraba redeemable subordinated bond 15,200.00 15,200.00 17,000.00
Assets revaluation reserves - - -
Revaluation reserves of securities - - -
Revaluation reserves for equity instruments - - -
All other preference shares - - -
Others (if any item approved by Bangladesh Bank) - - -
i. Sub total 33,006.58 33,006.58 33,041.68
ii. Deductions, if any - - -
Excess amount over maximum limit of Tier-II Capital has been deducted - - -
Total Eligible Tier-2 Capital (i-ii) 33,006.58 33,006.58 33,041.68

31.12.2022 31.12.2022 31.12.2021
(Consolidated) (Solo) (Consolidated)
20.2 Risk Weighted Assets (RWA) for
1. Investment (Credit) risk (i+ii) 7,39,455.94 7,40,079.61 647,865.32
(i) On-balance sheet 7,18,332.22 7,18,955.89 625,095.61
(ii) Off-balance sheet 21,123.72 21,123.72 22,769.71
2. Market Risk 13,238.34 13,238.34 12,515.75
3. Operational risk 66,990.24 66,038.91 65,132.96
Total Risk Weighted Assets (1+2+3) 8,19,684.52 8,19,356.86 725,514.03
B. Total Risk Weighted Assets (RWA) (Note-20.2) 8,19,684.52 8,19,356.86 725,514.03
C. Capital to Risk Weighted Asset Ratio (CRAR) 12.71% 12.54% 13.72%
(as against required above 12.50% )
D. Going Concern Capital to RWA (as against required minimum 6.00%) 8.68% 8.51% 9.16%
E.Gone Concern Capital capital to RWA 4.03% 4.03% 4.56%
F. Minimum Capital Requirement (MCR) 81,968.45 81,935.69 72,551.40
G. Surplus capital (A-F) 22,178.95 20,802.76 26,960.46
H. Minimum capital requirement including capital conservation buffer 1,02,460.56 1,02,419.61 90,689.25
I. Surplus capital considering conservation buffer (A-H) 1,686.84 318.84 8,822.61
Notes
1. Mudaraba Perpetual and Perpetual Contingent Convertible Bond of Tk 11,000 million has been qualified for Additional Tier-I
Capital under Basel-III Guidelines.
2. Mudaraba Redeemable Subordinated Bond of Tk. 15,200 million out of Tk. 20,000 million has been qualified for Tier-II
Capital under Basel-III Guidelines.
31.12.2022 31.12.2021
Taka Taka
21.0 Statutory reserve
Opening balance 20,735,466,258 19,735,466,258
Add: Addition made this year 1,000,000,000 1,000,000,000
Closing balance 21,735,466,258 20,735,466,258
At least 20% of net profit before tax is to be transferred to statutory reserve account each year until the cumulative balance equal
to the amount of paid up capital account as per Section 24 of the Bank Company Act 1991 as amended. Though the cumulative
balance of statutory reserve exceeded the amount of paid up capital, the Board of Directors has decided to transfer an amount of
Tk. 1,000,000,000/- to statutory reserve account.
22.0 Other reserves
General reserve (Note-22.1) 19,428,756,166 16,866,067,837
Assets revaluation reserve (Note-22.2) 9,018,051,329 9,071,295,675
Revaluation reserve of securities (Note-22.3) 189,540,000 126,950,400
Translation reserve (Note-22.4) 46,453,350 17,627,126
Share premium 1,989,633 1,989,633
Total 28,716,790,478 26,115,930,671
22.1 General reserve
Opening balance 16,866,067,837 14,917,131,853
Add: Addition/(adjustment) made this year 2,562,688,329 1,948,935,984
Closing balance 19,428,756,166 16,866,067,837
22.2 Assets revaluation reserve
Opening balance 9,071,295,675 9,125,905,260
Add: Addition made this year - -
Add: Deferred tax impact on excess depreciation 31,946,607 32,765,751
Less: Depreciation adjustment on revalued amount of building 85,190,953 87,375,336
Closing balance 9,018,051,329 9,071,295,675

31.12.2022 31.12.2021
Taka Taka
22.3 Revaluation reserve of securities
Opening balance 126,950,400 72,115,200
Add: Addition made this year 69,544,000 60,928,000
Add: Deferred tax impact on revaluation reserve of securities (6,954,400) (6,092,800)
Less: Adjustment made this year - -
Closing balance 189,540,000 126,950,400
22.4 Translation reserve

Opening balance 17,627,126 18,376,319
Add: Addition/(adjustment) made this year 28,826,224 (749,193)
Closing balance 46,453,350 17,627,126
22.(a) Consolidated other reserves
Total 28,772,608,153 26,141,424,690
23.0 Letters of guarantee
(a) Claim against the bank which is not acknowledged as debt - -
(b) Money for which the bank is contingently liable in respect - -
of guarantees issued favouring: - -
i) Directors - -
ii) Government 8,041,236,549 7,532,075,142
iii) Bank and other financial institutions 235,146,254 218,546,520
iv) Others 22,785,883,360 21,531,363,709
Total 31,062,266,163 29,281,985,371
2022 2021
24.0 Investment income Taka Taka
Income from general investment (Note-24.1) 81,644,170,911 70,407,842,123
Profit on deposits with other banks & financial institutions (Note-24.2) 6,340,086,342 3,002,245,724
Total 87,984,257,253 73,410,087,847
24.1 Income from general investment (*)

Bai Murabaha 51,604,063,081 42,243,547,265
Musharaka /Musharaka Documentary Bills 379,098,358 329,964,171
Bai Muajjal 7,037,011,641 7,114,999,763
Hire Purchase under Shirkatul Melk 15,306,802,752 16,034,160,244
Bai Salam 1,431,902,372 1,140,595,066
Bai -As- Sarf (FDB /FCD), IBP, MFCI and UPAS 870,685,213 802,728,766
Investment income: Off-shore Banking Unit (OBU) 4,909,057,151 2,596,495,177
Income on overseas Investment - -
Income on Mudaraba Investment 105,550,342 145,351,671
Sub total 81,644,170,911 70,407,842,123
(*) This amount includes any amount transferred from profit/rent suspense due to recovery or regularization of investment
(i.e. due to declassification of investment) during the year. Amount transferred from profit/rent suspense is included in the
"Investment income under respective mode of investment" and amount transferred from compensation suspense is included
under "Compensation income".
24.2 Profit on deposits with other banks & financial institutions
In Bangladesh 6,340,086,342 3,002,245,724
Outside Bangladesh - -
Sub total 6,340,086,342 3,002,245,724
Grand total (24.1+24.2) 87,984,257,253 73,410,087,847

2022 2021
Taka Taka
24.3 Investment income derived from the fund deployed by
Mudaraba deposits 82,529,233,303 71,066,351,624
Other deposits/fund 5,455,023,950 2,343,736,223
Total 87,984,257,253 73,410,087,847
24(a) Consolidated investment income

Inter-company transactions (105,908,901) (141,532,399)
Total 87,878,348,352 73,268,555,448
25.0 Profit paid on mudaraba deposits

Profit paid on Mudaraba Savings Deposit 8,432,349,976 8,614,678,790
Profit paid on Mudaraba Term Deposit Account 27,150,454,732 21,334,569,217
Profit paid on other Mudaraba Deposits 13,753,100,226 12,557,432,982
Profit paid on Placement (*) 3,312,973,190 1,123,390,885
Profit paid on Mudaraba Subordinate Bond 1,160,653,424 1,166,610,958
Profit Paid on MPSA 95,349,161 133,545,992
Profit Paid on Agri-Refinance 28,245,549 -
Profit Paid on borrowing from BGIS & other banks 143,924,011 -
Total 54,077,050,268 44,930,228,823
(*) Profit paid on Placement includes Tk. 2,890,333,904 (Tk. 917,071,315 in 2021) against Profit paid on Placement for Off-shore Banking Units (OBUs).
25(a) Consolidated profit paid on mudaraba deposits
Inter-company transactions (58,565,787) (44,438,980)
Total 54,018,484,481 44,885,789,843
26.0 Income from investments in shares & securities

i. Inside Bangladesh
Bangladesh Government Islamic Investment Bond (BGIIB) 248,740,902 531,521,000
Bangladesh Government Sukuk Bond (Islamic Bond) 1,255,647,937 316,385,806
Income on Share Securities Trading 125,766,484 276,756,459
Dividend Income (Note-26.1) 215,721,237 362,850,073
Profit on Mudaraba Perpetual Bond 410,432,111 274,000,000
Profit on Mudaraba Subordinated Bond 445,160,946 543,275,038
Sub total (i) 2,701,469,616 2,304,788,376
ii. Outside Bangladesh - -
Sub total (ii) - -
Grand total (i+ii) 2,701,469,616 2,304,788,376
26.1 Dividend Income

Bangladesh Shipping Corporation (BSC) 6,400,000 864,000
Central Depository Bangladesh Ltd. (CDBL) 5,711,803 5,711,803
Islami Bank Securities Limited - 134,992,300
Islami Bank Capital Management Limited - 20,999,510
Other Companies 203,609,434 200,282,460
Total 215,721,237 362,850,073

2022 2021
Taka Taka
26(a) Consolidated income from investments in shares & securities
Inter-company transactions - (155,991,810)
Total 2,988,738,075 2,740,647,792
27.0 Commission, exchange & brokerage income

Commission income 5,039,249,497 4,401,182,834
Exchange income (Note 27.1) 4,358,213,341 2,872,209,038
Total 9,397,462,838 7,273,391,872
27.1 Exchange income

Gross exchange gain 4,358,213,341 2,872,209,038
Less: exchange loss - -
Net exchange gain 4,358,213,341 2,872,209,038
27(a) Consolidated commission, exchange & brokerage income

Total 9,436,072,988 7,337,753,687
28.0 Other operating income

Rent on locker 28,637,071 21,780,287
Telephone/ trunk call charge 22,159 36,004
E & TA fees recovered 154,539 120,096
Account maintenance charges 1,018,291,102 637,733,719
Service charges recovered 200,913,278 169,100,099
Service charges recovered: OBU 241,968,000 194,153,000
Income from Mobile Wallet 14,618,061 17,033,697
Rent on premises realised 11,707,282 9,780,544
Sale proceeds of tender schedule 1,724,400 1,588,652
Profit on sale of bank's car 12,891,173 2,325,682
Cheque charge realised 90,370,957 61,076,992
P&T Charge realized 49,482,552 32,242,120
Commission on NPS network transaction 130,801,217 82,587,032
Proposal processing fees & services charge 702,567,316 305,521,521
Commission on remote transaction 819,894,471 600,495,197
Document processing fee (F.Ex.) 170,309,459 151,279,529
Commission on agent banking 449,898,010 320,548,814
SMS Charge 930,709,224 693,587,330
Others 1,648,016,916 1,967,748,168
Total 6,522,977,186 5,268,738,480
28(a) Consolidated other operating income
Inter Company Transactions (58,565,787) (44,438,980)
Total 6,831,431,761 5,574,215,305

2022 2021
Taka Taka
29.0 Salary & allowances (*)
Basic pay 9,139,297,069 7,626,829,737
Allowances 6,831,729,036 6,078,269,677
Bonus 2,658,153,672 2,258,253,910
Contribution to provident fund 645,331,546 551,205,050
Contribution to Gratuity 886,800,000 690,230,000
Contribution to benevolent fund and superannuation fund 91,815,300 94,124,000
Total 20,253,126,623 17,298,912,375
(*) The above salary & allowances includes Tk. 328,713 (Tk. 3,404,802 in 2021) against salary and allowances of Off-shore Banking
Units (OBUs).
29(a) Consolidated salary & allowances
Total 20,303,342,230 17,343,646,887
30.0 Rent, taxes, insurances, electricity etc.

Rent, rates and taxes (*) 682,766,582 414,732,559
Insurance 994,793,118 846,456,570
Electricity and lighting 457,597,424 401,327,079
Total 2,135,157,124 1,662,516,208
(*) Rent expense reverse Tk. 387,287,566 for implementing IFRS-16: Lease.
30(a) Consolidated rent, taxes, insurances, electricity etc.
Total 2,142,549,324 1,669,553,986
31.0 Legal expenses

Legal charges 8,480,848 6,606,709
31(a) Consolidated legal expenses
Islami Bank Securities Limited 2,905,279 639,296
Islami Bank Capital Management Limited 1,146,748 868,674
Total 12,532,875 8,114,679
32.0 Postage, stamps, telecommunications etc.

Telephone 118,465,257 91,116,846
Postage - -
Fax, internet & stamps charges 11,707,087 11,294,518
Total 130,172,344 102,411,364
32(a) Consolidated postage, stamps and telecommunication etc.
Total 130,865,549 102,973,928
33.0 Stationery, printing and advertisement etc.

Paper & table stationery 50,493,694 47,689,876
Printing and stationery (registers and forms) 94,229,212 87,635,822
Advertisement & publicity 154,052,752 108,424,835
Total 298,775,659 243,750,534

2022 2021
Taka Taka
33(a) Consolidated stationery, printing and advertisement etc.
Total 299,406,016 244,250,421
34.0 Chief executive's salary & fees

Basic pay 8,820,000 8,400,000
House rent allowance 840,000 840,000
Medical allowance 1,440,000 1,440,000
Utilities allowance 1,080,000 1,080,000
Festival bonus 1,617,000 1,540,000
Incentive bonus 750,000 600,000
Leave Fare Assistance 1,440,000 1,440,000
House Maintenance 1,200,000 1,200,000
Bank Contribution to PF 882,000 840,000
Total 18,069,000 17,380,000
35.0 Directors' fees and expenses

Directors' fees for attending board/ executive committee/ other committees meeting 3,177,200 3,176,000
TA/DA/hotel fare for local & foreign directors 410,778 -
Others - 547,142
Total 3,587,978 3,723,142
35.1 Rate of fees for attending board/ executive committee/ other committees meeting
For board meeting 8,000 8,000
For executive committee/ other committees meeting 8,000 8,000
35(a) Consolidated directors' fees and expenses

Total 5,366,579 5,747,621
36.0 Shari'ah supervisory committee's fees & expenses

Shari'ah supervisory members' fees for attending meeting 1,681,265 846,710
TA/DA/hotel fare 32,000 18,000
Others - 447,220
Total 1,713,265 1,311,930
36.1 Rate of fees for attending shariah supervisory meeting

For shariah supervisory meeting 8,000 8,000
For sub-committee meeting 8,000 8,000
37.0 Auditors' fees
Auditors' fees 3,450,000 4,025,000
37(a) Consolidated auditors' fees

Total 3,599,500 4,174,500

2022 2021
Taka Taka
38.0 Depreciation/amortization and repair to bank's assets
i) Depreciation/amortization
Premises (building) 119,929,274 123,006,983
Furniture & fixtures 79,453,120 85,293,949
Mechanical appliances 163,258,068 165,782,916
Computer 161,062,508 123,887,491
Motor vehicles 191,966,966 188,083,429
Books 498,858 551,530
ATM 444,297,194 297,872,070
Depreciation on lease assets 330,184,768 429,675,353
Amortization: intangible assets 68,238,653 67,804,283
Sub total (i) 1,558,889,409 1,481,958,005
ii) Repair of bank's properties/assets 121,852,037 152,299,487
Grand total (i+ii) 1,680,741,446 1,634,257,492
38(a) Consolidated depreciation and repair to bank's assets

Total 1,688,445,675 1,640,438,555
39.0 Other expenses

TA/ DA 175,037,594 147,656,540
Repairs to rented premises 20,286,612 10,559,829
Motor car running & maintenance (Note-39.1) 177,430,387 173,438,036
Periodicals & newspapers 18,392,838 13,270,880
Entertainment Expenses 131,992,861 111,663,375
Overtime 60,758,863 81,784,680
Training expenses 28,876,657 19,653,910
Meeting expenses 312,598 1,257,269
Bank charges 32,556,462 26,321,285
Uniforms 25,801,870 18,066,074
Conveyance 41,078,768 38,343,474
Cash award 43,718,200 18,344,200
Membership fees 12,725,629 11,415,857
Staff welfare 1,991,410 1,888,470
Evening banking allowance 1,620,542 2,043,164
Computer expenses 55,654,271 45,804,096
Wages 64,545,204 53,929,094
Discomfort allowance 57,770,349 53,593,855
Air condition maintenance 1,377,758 2,295,929
WASA/gas expenses 28,934,669 24,221,367
Washing charges 23,836,911 22,389,314
Transportation charges 18,492,122 23,028,272
Routers charges 34,050 70,174
Business development expenses 440,746,565 389,233,774
Photocopy expenses 22,908,113 16,287,115
Upkeep of office premises 33,586,749 28,831,296

2022 2021
Taka Taka
Clearing house expenses 82,641 66,681
Band width charges 147,565,434 256,225,840
Bond expenses (*) 422,393,438 515,198,380
Recruitment expenses 9,739,118 14,601,177
Professional fees 2,609,698 25,308,707
Loss on sale of bank's fixed asset 3,400,312 1,958,796
Mobile wallet expense 9,972,384 14,252,913
BACH Expense 734,430 767,638
RDS expenses (Note-39.2) 105,556,905 100,652,562
NPS network transactions charges 22,637,343 15,341,172
VISA expenses 190,842,060 105,603,922
Maintenance of software 60,190,861 114,864,352
Diploma in Islamic Banking related expenses 10,992,560 7,587,174
Agent Banking related expenses 2,266,513,990 1,641,928,771
Finance charge on lease rental 76,877,066 92,661,633
Safety materials (COVID-19) & Special aid 3,721,984 71,875,136
ATM related expense 23,147,849 545,055,999
Others 899,989,072 43,217,164
Total 5,777,435,198 4,902,559,344
(*) Bond expenses includes Tk. 21,820,685 for Mudaraba Perpetual Bond, Tk. 10,274,125 for Mudaraba Subordinated Bond and
Tk. 390,298,628 for additional profit paid on Mudaraba Subordinated Bonds.
39.1 Motor car running and maintenance

As on 31.12.2022 the Bank had 434 (Four hundred and thirty four) Motor Vehicles (Car- 343, Jeep- 41, Pickup- 48 and Microbus-
2). Out of 434 vehicles, 317 cars are attached with the senior executives of the Bank as per transport policy of the Bank and rest
vehicles are used for carrying cash, development works and other important works of the Bank. A sum of Tk. 177,430,387 was
incurred during the year 2022 as against Tk. 173,438,036 incurred during the year 2021 for repairs, maintenance, purchase of fuel
& lubricants and insurance etc. for the motor vehicles of the Bank.
39.2 RDS expenses
Risk allowance 30,235,000 29,645,000
By-cycle allowance 2,504,000 2,500,000
Motor cycle allowance 32,224,000 30,767,000
Field allowance 6,428,503 6,329,000
TA/ DA 9,898,000 7,287,000
Fuel 10,563,451 10,559,000
Stationary 8,801,950 8,761,124
Repairing 4,902,000 4,804,438
Total 105,556,904 100,652,562
39.3 VAT related to expenditures

All the expenditures reported in this Financial Statements are inclusive of VAT except for specific items which are exempted
from VAT by appropriate authority.
39(a) Consolidated other expenses

Inter Company transactions (105,908,901) (141,532,399)
Total 5,789,485,517 4,925,071,661

2022 2021
Taka Taka
40.0 Retained earnings: movement of surplus in profit & loss account
Retained earnings as on 1 January 1,609,990,668 1,609,990,668
Add: Net profit after tax for the year 5,923,445,627 4,639,202,881
Add: Depreciation adjustment on revalued assets 85,190,953 87,375,336
Sub-total 7,649,078,928 6,439,341,018
Less:
Transfer to statutory reserve 1,000,000,000 1,000,000,000
Transfer to/(from) general reserve 2,562,688,329 1,948,935,984
Dividend paid (Previous Year) 1,609,990,668 1,609,990,668
Transfer to start-up Fund 59,234,456 46,392,029
Cupon/profit on perpetual bond (*) 807,174,807 224,031,669
Sub-total 6,039,088,260 4,829,350,350
Balance of retained earnings as at 31 December 1,609,990,668 1,609,990,668
* As per Bangladesh Bank's Letter BRPD (BS)661/14BP/2022-3317 payment of Cupon/Profit against perpetual bond should be
presented as Distributable items of the Bank.
40(a) Consolidated retained earnings
Retained earnings as on 1 January 2,749,579,142 2,606,778,640
Add: Net profit attributable to equity holders of IBBL 6,166,984,693 4,807,547,402
Add: Transfer from Assets Revaluation Reserve to Retained Earnings 85,190,953 87,375,336
Less: Adjustment for changing in shares position - (50,000)
Sub-total 9,032,246,468 7,604,423,511
Less:
Transfer to statutory reserve 1,000,000,000 1,000,000,000
Transfer to/(from) general reserve 2,593,011,985 1,974,430,003
Dividend paid (cash dividend) 1,609,990,668 1,609,990,668
Transfer to start-up Fund 59,234,456 46,392,029
Cupon/profit on perpetual bond 807,174,807 224,031,669
Sub-total 6,069,411,916 4,854,844,369
Balance of retained earnings as at 31 December 2,962,834,552 2,749,579,142
40(b) Non-controlling interest

As on Share of profit or Adjust- As on As on
Particulars 01.01.2022 loss for the year ments 31.12.2022 31.12.2021
2022
A. Islami Bank Securities Limited 275,039 13,290 - 288,329 282,739
Add: Adjustment for changing in shares position - - - - -
Less: Dividend - - - - 7,700
Sub-total 275,039 13,290 - 288,329 275,039
B. Islami Bank Capital Management Limited 9,540 246 - 9,786 10,030
Less: Dividend - - - - 490
Sub-total 9,540 246 - 9,786 9,540
Total (A+B) 284,579 13,536 - 298,115 284,579
The share capital of Islami Bank Securities Ltd. is Tk. 2,700,000,000/- divided into 2,700,000 shares of Tk. 1,000/- each out of
which share capital of minority is Tk. 154,000/- divided into 154 shares of Tk. 1,000/- each which represent 0.0057% of total
share of the subsidiary Company.
The share capital of Islami Bank Capital Management Ltd. is Tk. 300,000,000/- divided into 300,000 shares of Tk. 1,000/ each
out of which share capital of minority is Tk. 7,000/- divided into 7 shares of Tk. 1,000/- each which represent 0.0023% of total
share of the subsidiary Company.
41.0 Events after reporting period
The Board of Directors of the Bank in its 321st meeting held on 27 April, 2023 recommended 10% Cash Dividend for the year
2022 subject to approval of the shareholders in the ensuing 40th Annual General Meeting to be held on 22 June 2023.

2022 2021
Taka Taka
42.0 Earnings per share (EPS)
a) Attributable profit for the year 5,923,445,627 4,639,202,881
b) Weighted average number of ordinary share during the year 1,609,990,668 1,609,990,668
Basic earnings per share (EPS) (a ÷ b) 3.68 2.88
Diluted earnings per share is not applicable since there is no possibility of dilution of shares during the year.
42(a) Consolidated earnings per share
Consolidated net profit after tax 6,166,998,229 4,807,565,191
Less: Profit attributable to non-controlling interest 13,536 17,789
Attributable profit for distribution to shareholders of IBBL 6,166,984,693 4,807,547,402
Weighted average number of ordinary share during the year 1,609,990,668 1,609,990,668
Consolidated basic earnings per share 3.83 2.99
43.0 Net asset value per share (NAV) of the Bank 31.12.2022 31.12.2021
Taka Taka
a) Capital/shareholders' equity for the year 68,162,154,084 64,561,294,277
Net asset value per share (NAV) (a ÷ b) 42.34 40.10
Net asset value per share (NAV) has been disclosed as per the Bangladesh Securities and Exchange Commission’s Notification
No.BSEC/CMRRCD/2006-158/208/Admin/81 dated June 20, 2018.
44.0 Net operating cash flow per share (NOCFPS) 2022 2021
Taka Taka
a) Net cash flows from operating activities (89,655,476,581) 66,680,268,286
Net operating cash flow per share (NOCFPS) (a ÷ b) (55.69) 41.42
The Net Operating Cash Flow Per Share (NOCFPS) on solo basis has significantly decreased by Tk. 97.11 than that of previous
year mainly due to increase of net cash out flows against investment to customers Tk. 114,307.38 million, as well as decrease of
deposit mobilization of Tk. 177,831 million during the year 2022. However, the cash & cash equivalents balance of the bank is
Tk. 234,291.80 million as on 31 December 2022.
45.0 Reconciliation of cash and cash equivalent at the end of the year 31.12.2022 31.12.2021
Taka Taka
Cash in hand 30,645,815,136 22,100,995,009
Balance with Bangladesh Bank and its agent banks (Sonali Bank Ltd.) 92,858,977,487 224,062,391,107
Balance with other banks and financial institutions 110,787,004,358 76,156,107,566
Total 234,291,796,982 322,319,493,681
45(a) Reconciliation of consolidated cash and cash equivalent at the end of the year
Cash in hand 30,645,839,722 22,101,061,649
Balance with Bangladesh Bank and its agent banks (Sonali Bank Ltd.) 92,858,977,487 224,062,391,107
Balance with other banks and financial institutions 115,248,794,287 80,968,445,974
Total 238,753,611,497 327,131,898,729
Note: The reconciliation of net profit with cash flows from operating activities has been presented at Annexure- E.
46.0 Currency wise exposures
Currency wise exposures are shown at Annexure- C.

322
Fixed Assets Schedule
ANNUAL REPORT 2022

Annexure - A
(Amount in Taka)
Cost Depreciation/Amortization Written down value
Group of Fixed Assets Sale / adjust-
Balance as at Addition during Total as at Charged up to Charged during Adjustment Total as at
ment during the as at 31.12.2022 as at 31.12.2021
01.01.2022 the year 31.12.2022 01.01.2022 the year during the year 31.12.2022
year
1 2 3 4 5 (2 + 3 - 4) 6 7 8 9 (6+7-8) 10 (5-9) 11
A. Tangible Assets
i) Premises
Cost
Land 682,129,033 - - 682,129,033 - - - - 682,129,033 682,129,033
Building 1,981,662,887 - - 1,981,662,887 592,130,031 34,738,321 - 626,868,352 1,354,794,535 1,389,532,856
Construction/capital work in process - - - - - - - - - -
Sub total 2,663,791,920 - - 2,663,791,920 592,130,031 34,738,321 - 626,868,352 2,036,923,568 2,071,661,889
Revaluation
Land 6,941,521,852 - - 6,941,521,852 - - - - 6,941,521,852 6,941,521,852
Building 4,557,449,467 - - 4,557,449,467 1,149,811,352 85,190,953 - 1,235,002,305 3,322,447,162 3,407,638,115
Sub total 11,498,971,319 - - 11,498,971,319 1,149,811,352 85,190,953 - 1,235,002,305 10,263,969,014 10,349,159,967
Sub total (i) 14,162,763,239 - - 14,162,763,239 1,741,941,383 119,929,274 - 1,861,870,657 12,300,892,582 12,420,821,856
ii) Other fixed assets
Furniture and fixtures 1,616,781,352 116,335,661 4,534,820 1,728,582,193 781,198,137 79,453,120 1,800,604 858,850,653 869,731,540 835,583,215
Mechanical appliances 2,953,527,300 127,615,733 2,867,690 3,078,275,343 2,212,103,214 163,258,068 1,766,402 2,373,594,880 704,680,463 741,424,086
Computer 2,077,839,123 230,234,448 457,840 2,307,615,731 1,723,819,250 161,062,508 242,910 1,884,638,848 422,976,883 354,019,873
Motor vehicles 1,769,962,030 70,699,614 208,838,625 1,631,823,019 1,236,564,087 191,966,966 208,597,457 1,219,933,596 411,889,423 533,397,943
Books 11,457,966 89,512 - 11,547,478 9,532,767 498,858 - 10,031,625 1,515,853 1,925,199
ATM 2,863,680,143 1,052,460,993 19,340,000 3,896,801,136 1,065,255,671 444,297,194 15,912,025 1,493,640,840 2,403,160,296 1,798,424,472
ROU-Assets for lease rent 2,380,392,163 - - 2,380,392,163 903,982,981 330,184,768 - 1,234,167,749 1,146,224,414 1,476,409,182
Sub Total (ii) 13,673,640,077 1,597,435,961 236,038,975 15,035,037,063 7,932,456,107 1,370,721,483 228,319,398 9,074,858,192 5,960,178,871 5,741,183,970
Total (i+ii) 27,836,403,316 1,597,435,961 236,038,975 29,197,800,302 9,674,397,490 1,490,650,757 228,319,398 10,936,728,849 18,261,071,453 18,162,005,826
B. Intangible assets 794,801,116 28,046,580 - 822,847,696 578,360,408 68,238,653 - 646,599,061 176,248,635 216,440,708
Total (A+B) 28,631,204,432 1,625,482,541 236,038,975 30,020,647,998 10,252,757,899 1,558,889,409 228,319,398 11,583,327,910 18,437,320,088 18,378,446,533
Consolidated Fixed Assets Schedule
Annexure - B
(Amount in Taka)
Cost Depreciation/Amortization Written Down Value
Sale /
Group of Fixed Assets Addition Charged Adjustment
Balance as at adjustment Total as at Charged up Total as at as at as at
during the during the during the
01.01.2022 during the 31.12.2022 to 01.01.2022 31.12.2022 31.12.2022 31.12.2021
year year year
year
1 2 3 4 5 (2+3-4) 6 7 8 9 (6+7-8) 10 (5-9) 11
A. Tangible Assets
i) Premises
Cost
Land 682,129,033 - - 682,129,033 - - - - 682,129,033 682,129,033
Building 1,981,662,887 - - 1,981,662,887 592,130,031 34,738,321 - 626,868,352 1,354,794,535 1,389,532,856
Construction/capital work in process - - - - - - - - - -
Sub total (i) 2,663,791,920 - - 2,663,791,920 592,130,031 34,738,321 - 626,868,352 2,036,923,568 2,071,661,889
Revaluation
Land 6,941,521,852 - - 6,941,521,852 - - - - 6,941,521,852 6,941,521,852
Building 4,557,449,467 - - 4,557,449,467 1,149,811,352 85,190,953 - 1,235,002,305 3,322,447,162 3,407,638,115
Sub total 11,498,971,319 - - 11,498,971,319 1,149,811,352 85,190,953 - 1,235,002,305 10,263,969,014 10,349,159,967
Sub total (i) 14,162,763,239 - - 14,162,763,239 1,741,941,383 119,929,274 - 1,861,870,657 12,300,892,582 12,420,821,856
ii) Other fixed assets
Furniture and fixtures 1,626,380,235 118,213,886 4,534,820 1,740,059,301 783,299,276 80,265,604 1,800,604 861,764,276 878,295,025 843,080,959
Mechanical appliances 2,957,539,900 129,162,244 3,456,585 3,083,245,559 2,213,962,249 163,788,666 2,333,894 2,375,417,021 707,828,538 743,577,651
Computer 2,084,122,355 231,716,339 1,225,635 2,314,613,059 1,726,967,607 162,634,689 1,010,705 1,888,591,591 426,021,140 357,154,748
Motor vehicles 1,777,319,530 70,699,614 208,838,625 1,639,180,519 1,240,761,602 193,438,466 208,597,457 1,225,602,611 413,577,908 536,557,928
Books 11,457,966 89,512 - 11,547,478 9,532,767 498,858 - 10,031,625 1,515,853 1,925,199
ATM 2,863,680,143 1,052,460,993 19,340,000 3,896,801,136 1,065,255,671 444,297,194 15,912,025 1,493,640,840 2,403,160,296 1,798,424,472
ROU-Assets for lease rent 2,382,564,834 287,292 - 2,382,852,126 905,612,485 331,015,227 - 1,236,627,712 1,146,224,414 1,476,952,349
Sub Total (ii) 13,703,064,963 1,602,629,880 237,395,665 15,068,299,178 7,945,391,657 1,375,939,033 229,654,685 9,091,676,005 5,976,623,173 5,757,673,306
Total (i+ii) 27,865,828,202 1,602,629,880 237,395,665 29,231,062,417 9,687,333,040 1,495,868,307 229,654,685 10,953,546,662 18,277,515,755 18,178,495,162
B. Intangible Assets 797,166,306 28,076,580 - 825,242,886 578,558,250 68,829,951 - 647,388,201 177,854,685 218,608,056
Total (A+B) 28,662,994,508 1,630,706,460 237,395,665 30,056,305,303 10,265,891,291 1,564,698,257 229,654,685 11,600,934,863 18,455,370,440 18,397,103,217
ANNUAL REPORT 2022

323
324
Currency wise Exposures
ANNUAL REPORT 2022

Annexure - C
(Amount in Taka)
Equivalent Taka of US Equivalent Taka of Other
Taka Equivalent Taka of GBP Equivalent Taka of EURO Total Taka
ASSETS Dollar Currency
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
1 2 3 4 5 6 7 8 9 10 11 12 13
Cash in hand 30,624,295,167 21,972,488,125 21,335,048 47,764,066 94,945 173,539 - 442,976 89,976 80,126,303 30,645,815,136 22,100,995,009
Balance with Bangladesh Bank & its 91,135,288,482 222,507,685,189 1,708,202,944 1,360,549,792 931,628 2,746,545 14,323,325 18,935,021 231,109 172,474,559 92,858,977,487 224,062,391,107
agent bank
Balance with banks & other financial institutions 86,842,245,128 61,571,659,434 22,848,152,057 12,665,704,366 120,177,808 177,892,109 378,728,738 345,345,952 597,700,627 1,395,505,705 110,787,004,358 76,156,107,566
Placement with other banks & financial institutions - - - - - - - - - - - -
Investments (in shares & securities) 89,471,452,136 93,836,189,166 983,211,300 983,211,300 - - - - - - 90,454,663,436 94,819,400,466
Investments 1,273,462,599,343 1,080,245,117,600 187,902,898,171 110,927,882,646 - - - - - - 1,461,365,497,513 1,191,173,000,246
Fixed assets including premises 18,437,320,088 18,378,446,533 - - - - - - - - 18,437,320,088 18,378,446,533
Other assets 33,530,927,106 9,166,726,047 - 135,732,599 - - - - - - 33,530,927,106 9,302,458,646
Non banking assets - - - - - - - - - - - -
Total assets 1,623,504,127,450 1,507,678,312,094 213,463,799,519 126,120,844,770 121,204,381 180,812,193 393,052,063 364,723,949 598,021,712 1,648,106,568 1,838,080,205,126 1,635,992,799,573
Equivalent Taka of US Equivalent Taka of Other

Taka Equivalent Taka of GBP Equivalent Taka of EURO Total Taka
LIABILITIES Dollar Currency
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Placement from Bangladesh Bank, other 143,000,000,000 - 44,438,369,400 36,765,300,000 - - - - - - 187,438,369,400 36,765,300,000
banks, financial institutions and agents
Deposits 1,344,897,302,309 1,330,287,418,401 55,244,978,223 43,248,556,353 8,901,926 14,622,516 4,835,928 206,089,535 988,690 105,354,218 1,400,157,007,800 1,373,862,041,023
Bills payable 10,288,421,539 8,117,488,474 - - - - - - - - 10,288,421,539 8,117,488,474
Other liabilities 140,987,421,049 121,874,953,905 46,831,254 35,881,895 - - - - - - 141,034,252,303 121,910,835,800
Mudaraba Perpetual Bond 11,000,000,000 10,175,840,000 - - - - - - - - 11,000,000,000 10,175,840,000
Mudaraba Redeemable Subordinated Bond 20,000,000,000 20,600,000,000 - - - - - - - - 20,000,000,000 20,600,000,000
Total liabilities 1,670,173,144,897 1,491,055,700,780 99,418,839,876 80,049,738,248 14,622,516 14,622,516 206,089,535 206,089,535 105,354,218 105,354,218 1,769,918,051,042 1,571,431,505,297
Net position (46,669,017,447) 16,622,611,314 114,044,959,643 46,071,106,522 106,581,865 166,189,677 186,962,528 158,634,414 492,667,494 1,542,752,350 68,162,154,083 64,561,294,277
Consolidated Segment Reporting
A. Segmental operating profit and loss Annexure-D
Amount in Taka
Head Office
Dhaka Dhaka South Dhaka North Khulna Comilla Rajshahi Chittagong Noakhali
Particulars Controlled Common Consolidated
Central Zone Zone Zone Zone Zone Zone South Zone Zone
Branches
Investment income 31,625,640,000 10,446,790,000 1,348,290,000 2,654,110,000 2,954,810,000 1,383,490,000 5,402,790,000 2,973,820,000 1,286,330,000 30,791,016,427 90,867,086,427
Profit paid on mudaraba deposits (4,617,016,952) (4,360,159,424) (2,155,671,976) (3,487,252,804) (2,065,145,738) (3,779,108,376) (2,229,894,339) (2,952,114,449) (3,513,383,410) (24,858,737,013) (54,018,484,481)
Profit received/(paid) on IB General A/C (13,990,000,000) (1,057,400,000) 2,267,200,000 3,120,100,000 1,370,680,000 5,341,920,000 168,050,000 3,223,020,000 4,504,680,000 4,948,250,000 -
Net investment income 13,018,623,048 5,029,230,576 1,459,818,024 2,286,957,196 2,260,344,262 2,946,301,624 3,340,945,661 3,244,725,551 2,277,626,590 10,880,529,414 36,848,601,946
Commission, exchange & other income 3,464,850,000 1,708,080,000 301,880,000 456,650,000 357,160,000 227,660,000 376,730,000 218,780,000 234,530,000 8,921,184,749 16,267,504,749
Total operating income 16,483,473,048 6,737,310,576 1,761,698,024 2,743,607,196 2,617,504,262 3,173,961,624 3,717,675,661 3,463,505,551 2,512,156,590 19,801,714,163 53,116,106,695
Total operating expenses (1,284,424,831) (1,382,205,069) (951,185,326) (1,291,912,858) (1,076,339,484) (1,022,964,556) (1,062,730,234) (992,840,927) (1,009,958,859) (21,291,812,514) (31,366,374,658)
Operating Profit 15,199,048,217 5,355,105,507 810,512,698 1,451,694,338 1,541,164,778 2,150,997,068 2,654,945,427 2,470,664,624 1,502,197,731 (1,490,098,352) 21,749,732,036
There are 19 operating segments including subsidiaries as on 31 December 2022. Out of which only 9 are reportable as per IFRS-8 "Operating Segments". Hence other non-reportable segments have been shown as under 'Common'.
Consolidated Segment Reporting

Amount in Taka
Head Office
Dhaka Dhaka South Dhaka North Comilla Rajshahi Chittagong Noakhali
Particulars Controlled Khulna Zone Common Consolidated
Central Zone Zone Zone Zone Zone South Zone Zone
Branches
Investment income 27,374,910,000 9,014,740,000 1,364,350,000 2,769,550,000 2,794,250,000 1,516,360,000 3,452,870,000 1,555,040,000 1,362,400,000 24,804,733,240 76,009,203,240
Profit paid on mudaraba deposits (4,397,070,067) (3,598,703,798) (1,825,332,169) (2,914,152,533) (1,851,892,149) (3,416,165,239) (2,027,018,785) (2,589,545,565) (3,063,246,660) (19,202,662,878) (44,885,789,843)
Profit received/(paid) on IB General Account (11,729,450,000) (1,057,400,000) 2,267,200,000 3,120,100,000 1,370,680,000 5,341,920,000 168,050,000 3,223,020,000 4,504,680,000 7,208,800,000 -
Net investment income 11,248,389,933 4,358,636,202 1,806,217,831 2,975,497,467 2,313,037,851 3,442,114,761 1,593,901,215 2,188,514,435 2,803,833,340 12,810,870,362 31,123,413,397
Commission, exchange & other income 2,712,710,000 1,708,080,000 301,880,000 456,650,000 357,160,000 227,660,000 376,730,000 218,780,000 234,530,000 6,317,788,992 12,911,968,992
Total operating income 13,961,099,933 6,066,716,202 2,108,097,831 3,432,147,467 2,670,197,851 3,669,774,761 1,970,631,215 2,407,294,435 3,038,363,340 19,128,659,354 44,035,382,389
Total operating expenses (1,082,067,146) (1,365,498,486) (941,256,985) (1,278,895,796) (1,064,751,001) (1,011,889,490) (1,050,567,337) (983,304,196) (1,000,218,483) (17,079,129,211) (26,857,578,131)
Operating Profit 12,879,032,787 4,701,217,716 1,166,840,846 2,153,251,671 1,605,446,850 2,657,885,271 920,063,878 1,423,990,239 2,038,144,857 2,049,530,142 17,177,804,257
B. Segmental assets and liabilities
The necessary information regarding assets and liabilities of operating segments (except subsidiaries) are not separable and individually identifiable for this purpose. For this reason the assets and liabilities of the respective segments have not
been presented here.
ANNUAL REPORT 2022

325
Annexure-E

Reconciliation of Net Profit with Cash Flows from Operating Activities
2022 2021
Particulars Note
Taka Taka
Profit before tax as per profit and loss accounts 14,592,921,537 11,441,284,869
Adjustment for non cash items
Provision for investments & off- balance sheet exposures 6,364,930,031 5,072,923,726
Provision for diminution in value of investments in shares 326,256,888 (5,000,000)
Other provisions (36,700,445) 45,201,095
Depreciation of property plant & equipment 1,558,889,409 1,481,958,005
Foregn exchange gain/(Loss) 28,826,224 (749,193)
Profit on sale of the fixed assets 9,490,861 366,886
8,251,692,969 6,594,700,519
Increase/decrease in operating assets & liabilities
Investments to customers (270,192,497,267) (155,885,117,913)
Placement from other banks 150,673,069,400 (7,704,018,312)
Other assets (24,228,468,461) 5,103,703,194
Deposits from other banks 5,131,425,754 1,123,022,409
Deposits received from customers 23,334,474,088 201,165,161,203
Other liabilities 9,534,387,245 12,093,349,395
Income tax paid (6,752,481,846) (7,251,817,078)
(112,500,091,087) 48,644,282,898
Cash flows from operating activities as per cash flow statement (89,655,476,581) 66,680,268,286

Financial Highlights
Amount in Million Taka
Sl.
No.
1 Paid-up Capital 16,099.91 16,099.91
2 Total Capital (Equity) 102,738.44 98,189.08
3 Capital Surplus/(Deficit) 318.84 7,517.83
4 Total Assets (Excluding contra) 1,838,080.21 1,635,992.80
5 Total Deposits 1,410,445.43 1,381,979.53
6 Total Investments (excluding Investment in shares/securities) 1,461,365.50 1,191,173.00
7 Total Contingent Liabilities and Commitments 268,015.46 264,845.62
8 Investment Deposit Ratio (IDR) 91.64% 79.74%
9 Percentage of classified investment against total general investments 3.70% 3.31%
10 Profit after Tax & Provision 5,923.45 4,639.20
11 Amount of classified investment during current year 14,634.90 4,128.01
12 Provision kept against classified investments 42,073.98 37,230.28
13 Provision surplus/ (deficit) 0.50 0.51
14 Cost of Fund 6.55% 6.17%
15 Profit Earning Assets 1,423,908.05 1,144,776.62
16 Non-profit Earning Assets 414,172.16 491,216.18
17 Return on Investments 6.39% 6.32%
18 Return on Assets 0.34% 0.30%
19 Income from Investments 90,685.73 75,714.88
20 Earnings Per Share (EPS) in Taka 3.68 2.88
21 Net Income Per Share in Taka 3.68 2.88
22 Price Earning Ratio (Times) 8.70 11.11
23 Net Asset Value (NAV) 68,162.15 64,561.29
24 Net Asset Value (NAV) Per Share in Taka 42.34 40.10
25 Net Operating Cash Flow Per Share (NOCFPS) in Taka (55.69) 41.42
26 Dividend Yield Per Share 3.03% 3.13%
27 Dividend Pay Out Ratio Per Share 27.18% 34.70%
28 Dividend Cover Ratio (Times) 3.68 2.88

Annexure-F
Islami Bank Bangladesh Limited (Off-Shore Banking Unit)

Balance Sheet
31.12.2022 31.12.2021
Particulars Notes
USD BDT USD BDT
Property and assets
Cash in hand - - - -
Cash in hand (including foreign currency) - - - -
Balance with Bangladesh Bank & its agent bank(s) - - - -
(including foreign currency)
Balance with other banks & financial institutions 2,518,483.50 260,151,791 2,017,266.42 173,081,459
In Bangladesh 2.0 2,518,483.50 260,151,791 2,017,266.42 173,081,459
Outside Bangladesh - - - -
Placement with banks & other financial institutions 3.0 2,587,480.50 267,278,973 48,550,422.02 4,165,626,209
Investments in shares & securities - - - -
Government - - - -
Others - - - -
Investments 4.0 1,333,023,489.10 137,697,327,353 648,496,262.80 55,640,979,348
General investments etc. - - - -
Bills purchased & discounted 4.1 1,333,023,489.10 137,697,327,353 648,496,262.80 55,640,979,348
Fixed assets - - - -
Other assets 5.0 783,263.97 80,908,818 91,027.78 7,810,184
Non - banking assets - - - -
Total property and assets 1,338,912,717.07 138,305,666,935 699,154,979.02 59,987,497,200
Liabilities
Placement from banks & other financial institutions 6.0 1,294,440,615.04 133,711,832,212 686,657,899.76 58,915,247,799
Deposits & other accounts 211,938.93 21,892,655 79,706.90 6,838,852
Mudaraba Savings Deposits 1,990.70 205,633 996 85,431
Mudaraba Term Deposits 209,948.23 21,687,022 78,711 6,753,421
Other Mudaraba Deposits - - - -
Al- Wadeeah Current and other deposit accounts - - - -
Bills payable - - - -
Other liabilities 7.0 44,260,163.10 4,571,942,068 12,417,372.36 1,065,410,549
Deferred tax liabilities /(assets) - - - -
Total liabilities 1,338,912,717.07 138,305,666,935 699,154,979.02 59,987,497,200
Capital/ share-holders' equity - - - -
Paid - up capital - - - -
Statutory reserve - - - -
Translation reserves 8.0 - 46,453,350 - 17,627,126
Retained earnings 17.0 - (45,453,350) - (17,627,126)
Total liabilities & shareholders' equity 1,338,912,717.07 138,305,666,935 699,154,979.02 59,987,497,200
Acceptances & endorsements - - - -
Letters of guarantee - - - -
Irrevocable letters of credit (including back to back bills) - - - -
Bills for collection - - - -
Other contingent liabilities - - - -
Total - - - -
Other commitments
Documentary credits, short term and trade related transactions - - - -
Forward assets purchased and forward deposits placed - - - -
Undrawn note issuance, revolving and underwriting facilities - - - -
Undrawn formal standby facilities, credit lines and - - - -
other commitments
Total - - - -
Total off-balance sheet items including contingent liabilities - - - -

Profit & Loss Account
2022 2021
Particulars Notes
USD BDT USD BDT
Operating income
Investment income 9.0 48,578,733.99 4,908,881,070 30,530,782.06 2,592,063,397
Profit paid on mudaraba deposits/placement 10.0 (28,603,007.46) (2,890,333,904) (10,801,782.27) (917,071,315)
Net investment income 19,975,726.53 2,018,547,166 19,728,999.79 1,674,992,082
Income from investments in shares & securities - - - -
Commission, exchange & brokerage income - - - -
Other operating income 11.0 2,396,059.21 242,121,783 2,286,843.34 194,153,000
Total operating income 22,371,785.74 2,260,668,949 22,015,843.13 1,869,145,082
Operating expenses
Salary & allowances 12.0 3,252.97 328,713 40,103.67 3,404,802
Rent, taxes, insurances, electricity etc. - - - -
Legal expenses - - - -
Postage, stamps and telecommunication etc. 13.0 - - - -
Stationery, printing and advertisement etc. - - - -
Chief executive's salary & fees - - - -
Directors' fees & expenses - - - -
Shari'ah supervisory committee's fees & expenses - - - -
Auditors' fees - - - -
Charges on investment losses - - - -
Depreciation and repair to bank's assets - - - -
Zakat expenses - - - -
Other expenses 14.0 1,695,034.54 171,283,240 2,390,044.39 202,914,769
Total operating expenses 1,698,287.51 171,611,953 2,430,148.06 206,319,570
Profit/ (loss) before provision 20,673,498.23 2,089,056,996 19,585,695.07 1,662,825,511
Provision for investments & off- balance sheet items 15.0 - - - -
Provision for diminution in value of investments in shares - - - -
Other provisions - - - -
Total provision - - - -
Total profit/(loss) before taxes 20,673,498.23 2,089,056,996 19,585,695.07 1,662,825,511
Provision for taxation for the period
Current tax 16.0 - - - -
Deferred tax 16.0 - - - -
Net profit/ (loss) after tax 20,673,498.23 2,089,056,996 19,585,695.07 1,662,825,511
Retained earnings from previous year - - - -
Less: Interim dividend paid - - - -
Add: Net profit after tax 20,673,498.23 2,089,056,996 19,585,695.07 1,662,825,511
Profit available for appropriation 20,673,498.23 2,089,056,996 19,585,695.07 1,662,825,511
Less: Appropriation 20,673,498.23 2,089,056,996 19,585,695.07 1,662,825,511
Statutory reserve - - - -
General reserve - - - -
Retained earnings (Transferred to main operation) 17.0 20,673,498.23 2,135,510,346 19,585,695.07 1,680,452,637
Translation reserve movement - (46,453,350) - (17,627,126)

Cash Flow Statement
2022 2021
Particulars
USD BDT USD BDT

Investment income 48,578,733.99 4,908,881,070 30,530,782.06 2,592,063,397
Profit paid on mudaraba deposits/placement (28,603,007.46) (2,890,333,904) (10,801,782.27) (917,071,315)
Income/ dividend receipt from investments in shares & securities - - - -
Fees & commission receipt in cash - - - -
Recovery from written off investments - - - -
Payments to employees (3,252.97) (328,713) (40,103.67) (3,404,802)
Cash payments to suppliers - - - -
Income tax paid - - - -
Receipts from other operating activities 2,396,059.21 242,121,783 2,286,843.34 194,153,000
Payments for other operating activities (1,695,034.54) (171,283,240) (2,390,044.39) (202,914,769)
i) Operating profit before changes in operating assets & liabilities 20,673,498.23 2,089,056,996 19,585,695.07 1,662,825,511
Increase/(decrease) of statutory deposits - - - -
(Increase)/decrease of net trading securities - - - -
(Increase)/decrease of placement to other banks 45,962,941.52 3,898,347,236 (10,604,281.04) (947,778,275)
(Increase)/decrease of investments to customers (684,527,226.30) (82,056,348,005) 35,639,592.25 2,374,014,814
(Increase)/decrease of other assets (692,236.19) (73,098,634) 258,971.51 21,869,896
Increase/(decrease) of placement from other banks - - - -
Increase/(decrease) of deposits from other banks - - - -
Increase/(decrease) of deposits received from customers 132,232.03 15,053,803 79,706.90 6,838,852
Increase/(decrease) of other liabilities account of customers - - - -
Increase/(decrease) of trading liabilities - - - -
Increase/(decrease) of other liabilities 31,842,790.74 3,599,438,219 (3,985,465.33) (290,302,398)
(ii) Cash flows from operating assets and liabilities (607,281,498.20) (74,616,607,381) 21,388,524.29 1,164,642,889
Net cash flows from operating activities (A)=(i+ii) (586,607,999.97) (72,527,550,385) 40,974,219.36 2,827,468,400
Proceeds from sale of securities - - - -
Payment for purchase of securities/membership - - - -
Purchase/sale of property, plants & equipments - - - -
Purchase/sale of subsidiaries - - - -
Net cash flows from investing activities (B) - - - -

Receipts from issue of debt instruments - - - -
Payment for redemption of debt instruments - - - -
Fund obtained from banks & other financial institutions 607,782,715.28 74,796,584,413 (21,170,319.76) (1,108,868,348)
Profit transferred to main operation (20,673,498.23) (2,135,510,346) (19,585,695.07) (1,680,452,637)
Net cash flows from financing activities (C) 587,109,217.05 72,661,074,067 (40,756,014.83) (2,789,320,985)
Net increase/(decrease) in cash (A+B+C) 501,217.08 133,523,682 218,204.53 38,147,415
Add/(less) Effects of exchange rate changes on cash & cash equivalent - (46,453,350) - (17,627,126)
Add: Cash & cash equivalents at beginning of the year 2,017,266.42 173,081,459 1,799,061.89 152,561,169
Cash & cash equivalents at the end of the year 2,518,483.50 260,151,791 2,017,266.42 173,081,459

Notes to the Financial Statements
1.0 Status of the Units
Off-shore Banking Units (OBU) of Islami Bank Bangladesh Ltd. governed under the rules and guidelines of Bangladesh Bank.
The Bank obtained permission from Bangladesh Bank for operating of Off-shore Banking Units located at Head Office Complex
Branch, Dhaka, Agrabad Branch, Chattogram and Uttara Branch, Dhaka vide Bangladesh Bank letter no. BRPD (P-3)744
(111)/2010-1032 dated 28 March 2010. The Bank has Commenced the operation of its Off-shore Banking Units from 08.02.2011
at Head Office Complex Branch, Dhaka, from 27.09.2011 at Agrabad Branch, Chattogram and from 01.06.2015 at Uttara Branch.
1.1 Principal activities
The principal activities of the OBU are to provide mudaraba investment against payment of import bills under UPAS (Usance
Payment at Sight) to its customers of Off-shore Banking Units in Bangladesh.
1.2 Significant accounting policies and basis of preparation of financial statements
1.2.1 Basis of accounting
The Off-shore Banking Units maintain its accounting records in USD from which accounts are prepared according to the Bank
Company Act, 1991 as amended, International Financial Reporting Standards (IFRSs) and other applicable directives issued
by Bangladesh Bank. All the financial statements relating to the OBU has already been accounted for in the separate financial
statements of the Bank (considering necessary adjustments relating to intra-units transactions and balances). Along with that, this
financial statements relating to OBU only is prepared and disclosed in compliance with the requirements of Bangladesh Bank.
1.2.2 Use of estimates and judgments
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the
application of accounting policies and the report amounts of assets, liabilities, income and expenses. Actual results may differ from
these estimates. The figures (BD Taka/BDT) appearing in these Financial Statements have been rounded off to the nearest integer.
1.2.3 Foreign currency transactions
a. Foreign currency transactions
Foreign currency transactions are converted in to equivalent Taka using the ruling exchange rates on the dates of respective
transactions as per IAS-21 "The Effects of changes in Foreign Exchange Rates". Foreign currency balances held in US Dollars
(USD) are converted into Taka at weighted average rate of inter-bank market as determined by Bangladesh Bank on the closing
date of every month.
b. Transaction gains and losses
The resulting exchange transaction gains and losses are included in the profit and loss account.
1.2.4 Translation reserve
The activities of OBU is considered as foreign operation due to it's different functional currency other than the non-OBU operation
of the Bank. As per IAS - 21, items of balance sheet of OBU has been translated to presentation currency using closing rate and
items of income and expenditure has been translated to presentation currency using spot rate prevailing on the date of actual
transaction, otherwise average rate has been used. Due to the above translation using two rates the arising differences have been
kept as translation reserve.
1.2.5 Retained earnings/Net profit transferred to main operation
As on 31 December the net income in USD/foreign currency of OBU is transferred to main operation of the Bank at exchange rate
prevailing on that date.
1.2.6 Cash flow statement
Cash flow statement has been prepared as per BRPD Circular No. 14, dated June 25, 2003 issued by the Banking Regulation and
Policy Department of Bangladesh Bank.
1.2.7 Comparative information and rearrangement thereof
Comparative figures have been re-arranged wherever considered necessary to ensure better comparability with the current period
without causing any impact on the profit and value of assets and liabilities as reported in the financial statements.
1.2.8 Reporting period
The financial statements cover from 01 January 2022 to 31 December 2022.
1.3 Assets and basis of their valuation
1.3.1 Cash and cash equivalents
Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh Bank and highly liquid
financial assets which are subject to insignificant risk of changes in their fair value, and are used by the unit's management for its
short-term commitments.

1.3.2 Investments
Investment of OBU are stated in the balance sheet on net basis. Profit is calculated on daily product basis but charged and account
for on realisation/cash basis.
1.4 Allocation of common expenses
Establishment expenses in the nature of rent, rates, taxes, management expenses, printing and stationery, electricity, postage,
stamps, telecommunication and audit fees etc. have not been separately accounted for in the financial statements, but staff costs
(salaries and allowances) are separately accounted for OBU.
1.5 Profit paid on mudaraba deposits/placement
OBU obtains fund under placement from abroad (different foreign Banks) and OBUs of different Banks in Bangladesh (BD) based
on Mudaraba Agreement and pays proportionate amount of investment income earned through deploying these fund as profit. In
some cases OBU pays profit at provisional rate in advance which is shown as "Prepaid profit on placement" under other assets.
Off-shore Banking Units (OBUs) of IBBL obtains fund under placement from its Head Office (Treasury Division), abroad (different
foreign Banks) and OBUs of different Banks in Bangladesh (BD) as per Bangladesh Bank Letter No.BCD(P)744(27)/1416, dated
17 December 1985.
2.0 Balance with other banks & financial institutions
31.12.2022 31.12.2021
USD BDT USD BDT
In Bangladesh (balance with Treasury 2,518,483.50 260,151,791 2,017,266.42 173,081,459
Division)
Outside Bangladesh - - - -
Total 2,518,483.50 260,151,791 2,017,266.42 173,081,459
3.0 Placement with banks & other financial institutions
Fund provided to AD Branches for MDB in FC (*) 2,587,480.50 267,278,973 48,550,422.02 4,165,626,209
(*) This amount has been provided to AD branches to finance investment in MDB in FC as per the requirement of the AD branches
as per Bangladesh Bank FE Circular No. 03 dated 04 February 2013.
4.0 Investments
General investments etc. - - - -
Bills purchased & discounted (Note-4.1) 1,333,023,489.10 137,697,327,353 648,496,262.80 55,640,979,348
Total 1,333,023,489.10 137,697,327,353 648,496,262.80 55,640,979,348
4.1 Bills purchased & discounted
Mudaraba Documentary Import Bills (MDIB- 1,218,344,824.46 125,851,365,332 498,554,512.24 42,775,977,150
UPAS) (*)
Hire-Purchase under Shirkatul Melk (HPSM in FC) 114,678,664.64 11,845,962,021 149,941,750.56 12,865,002,198
Total 1,333,023,489.10 137,697,327,353 648,496,262.80 55,640,979,348
(*) OBU allows the facilities as per Bangladesh Bank BRPD Circular No. 28, dated 05 September 2010.
5.0 Other assets
Prepaid profit on placement from banks & 783,263.97 80,908,818 91,027.78 7,810,184
other financial institutions
Total 783,263.97 80,908,818 91,027.78 7,810,184
IBBL -main operation (Treasury Division) 864,240,615.04 89,273,462,812 258,157,899.76 22,149,947,799
Banks in BD (OBU) 146,500,000.00 15,133,010,500 227,000,000.00 19,476,600,000
Banks (abroad) 283,700,000.00 29,305,358,900 201,500,000.00 17,288,700,000
Total 1,294,440,615.04 133,711,832,212 686,657,899.76 58,915,247,799
7.0 Other liabilities
Profit payable 6,121,402.40 632,322,504 1,601,625.61 137,419,477
Unearned Income 5,395,759.72 557,365,792 3,887,436.72 333,542,071
Profit Receivable UPAS 32,743,000.98 3,382,253,772 6,928,310.03 594,449,001
Profit during the year - - - -
Total 44,260,163.10 4,571,942,068 12,417,372.36 1,065,410,549

31.12.2022 31.12.2021
USD BDT USD BDT
8.0 Translation reserve
Balance as on 01 January - 17,627,126 - 18,376,319
Addition/(adjustment) during the year - 28,826,224 - (749,193)
Balance as at 31 December - 46,453,350 - 17,627,126
9.0 Investment income
Mudaraba documentary import bills (MDIB-UPAS) 39,903,767.03 4,032,275,658 23,796,929.62 2,020,359,325
Hire-Purchase under Shirkatul Melk (HPSM in FC) 6,973,883.18 704,710,895 5,389,852.76 457,598,499
Placement to AD branches (MDB-FC) 1,701,083.78 171,894,516 1,343,999.68 114,105,573
Total 48,578,733.99 4,908,881,070 30,530,782.06 2,592,063,397
10.0 Profit paid on mudaraba deposits/placement
Profit paid on mudaraba deposits 59,455.34 6,007,962 1,513.03 128,456
Profit paid on Placement from Banks/FIs in 13,887,882.77 1,403,370,554 4,820,574.77 409,266,798
Abroad
Profit paid on Placement from Banks/FIs in 14,655,669.35 1,480,955,388 5,979,694.47 507,676,061
BD (OBU)
Total 28,603,007.46 2,890,333,904 10,801,782.27 917,071,315
11.0 Other Income
Service charge realized (MDIB-UPAS) 416,327.57 42,069,901 416,298.80 35,343,768
Management fees (Mura UPAS, MDB & 1,979,731.64 200,051,882 1,870,544.54 158,809,231
HPSM in FC)
Total 2,396,059.21 242,121,783 2,286,843.34 194,153,000
12.0 Salary & allowances
Basic pay 1,193.47 120,600 40,103.67 3,404,802
Allowances 1,403.15 141,788 - -
Bonus 537.00 54,264 - -
Contribution to Provident Fund 119.35 12,060 - -
Total 3,252.97 328,713 40,103.67 3,404,802
13.0 Postage, stamps and telecommunication etc.
Telephone Bill - - - -
14.0 Other expenses
Profit Share of ADs 1,695,034.54 171,283,240 2,389,808.82 202,894,769
Printing & Stationery - - 235.57 20,000
Entertainment - - - -
Total 1,695,034.54 171,283,240 2,390,044.39 202,914,769
15.0 Provision for investment
Provision for investment have not been separately accounted for in the financial statements of OBU. These are accounted for
directly in the main financial statements of the Bank.
16.0 Provision for tax
Provision for current and deferred tax have not been separately accounted for in the financial statements of OBU. These are
accounted for directly in the main financial statements of the Bank.
17.0 Retained earnings
Balance as at 01 January - (17,627,125) - (18,376,319)
Addition during the year 20,673,498.23 2,089,056,996 19,585,695.07 1,662,825,511
Effect of translation reserve - 17,627,125 - 18,376,319
Transferred to main operation (20,673,498.23) ( 2,135,510,346) (19,585,695.07) (1,680,452,637)
Balance as at 31 December - (46,453,350) - (17,627,125)

ISLAMI BANK
SECURITIES LIMITED

Independent Auditor's Report
To The Shareholders of
Islami Bank Securities Limited
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Islami Bank Securities Limited, which comprise the statement of financial position as at 31
December 2022, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash
flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements give a true and fair view, in all material respects, of the financial position of
the company as at 31 December 2022, and of its financial performance and its cash flows for the year then ended in accordance with
International Financial Reporting Standards (IFRSs).
Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of
the Company in accordance with the International Ethics Standards Board of Accountants' Code of Ethics for Professional Accountants
(IESBA Code) together with the ethical requirements that are relevant to our audit of the Financial Statements in Bangladesh, and we have
fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other information
Management is responsible for the other information. The other information comprises all of the information in the Annual Report other
than the financial statements and our auditor’s report thereon. The annual report is expected to be made available to us after the date of
this auditor’s report.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially in consistent with the financial statements of our knowledge obtained in the audit or otherwise
appears to be materially misstated.
Responsibilities of management of those charged with governance for the financial statements
Management of Islami Bank Securities Limited is responsible for the preparation and fair presentation of the Financial Statements in
accordance with International Financial Reporting Standards (IFRSs), the Companies Act, 1994, the Securities and Exchange Rules, 2020
and other applicable Laws and Regulation and for such internal control as management determines is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either
intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with International Standards on Auditing (ISAs) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the
audit. We also:
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, designed and
performed audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
 Obtained an understanding of internal control relevant to the audit in order to design audit procedure that as appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
 Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's
ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to the date of our
auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
 Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
 Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of
the audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant and findings, including any significant deficiencies in internal control. That we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
Report on other legal and regulatory requirements
In accordance with the Companies Act, 1994 and the Securities and Exchange Rules, 2020, we also report the following:
(a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes
of our audit and made due verification thereof;
(b) in our opinion, proper books of account as required by law have been kept by the company so far as it appeared from our examination
of those books;
(c) the statement of financial position and statement of profit or loss and other 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.
Place: Dhaka, Bangladesh Md. Shahidul Islam FCA

Date: 01 February 2023 Partner
Enrollment No-1758
K.M. HASAN & CO.
DVC:2302011758AS984340

2022 2021
ASSETS Notes
Taka Taka
Current assets
Cash and cash equivalents 3 202,556,715 700,218,899
Investment in MTDR 4 5,000,000,000 4,813,375,001
Receivable from Securities Trading 5 6,394,981 10,115,415
Receivable from margin clients 6 40,156,320 16,786,794
Receivable from other Clients 7 341,645 1,082,346
Investment in securities 8 3,242,676,233 3,166,673,184
Other assets 9 133,212,080 102,943,209
Advance, deposit and prepayments 10 11,524,830 4,452,480
8,636,862,803 8,815,647,328
Non-current assets
Property, plant and equipment 11 11,779,093 10,941,485
Intangible assets 12 652,942 891,568
Investment in TREC (Membership) 13 298,340,049 298,340,049
Investment in Xpert Fintech Ltd. 14 30,000,000 -
Deferred tax assets 15 2,447,928 2,668,079
343,220,012 312,841,180
Total Assets 8,980,082,815 9,128,488,508
EQUITY AND LIABILITIES
Current liabilities
Payable to clients 16 150,549,169 385,978,785
Payable to Exchanges 17 4,288,745 9,814,275
Dividend payable 18 - 135,000,000
Accrued expenses 19 5,881,768 5,147,750
Provision for income tax 20 122,091,129 127,927,144
Other current liabilities 21 7,815,862 8,168,188
290,626,673 672,036,142
Non-current liabilities
Investment from IBBL 22 4,700,000,000 4,700,000,000
4,700,000,000 4,700,000,000
Equity
Paid up capital 23 2,700,000,000 2,700,000,000
Capital Reserve 24 55,817,675 25,494,019
Retained earnings 25 1,233,638,466 1,030,958,346
3,989,456,142 3,756,452,365
Total Equity and Liabilities 8,980,082,815 9,128,488,508
For and on behalf of Board of Directors of Islami Bank Securities Limited
Mohammed Nasir Uddin, FCMA Taher Ahmed Chowdhury Md. Jahidul Islam, FCMA
Chairman Director Managing Director & CEO
Signed in terms of our separate report of even date annexed

Md.Shahidul Islam FCA
Place: Dhaka, Bangladesh Partner
Date: 01 February 2023 Enrollment No-1758
K. M. HASAN & CO.
DVC:2302011758AS984340

Statement of Profit or Loss and Other Comprehensive Income
2022 2021
Notes
Taka Taka
Operating income 26 635,883,192 902,547,063

Less: Operating expenses 27 112,490,305 154,695,289
Gross Profit 523,392,887 747,851,774
Less: Administrative and general expenses 28 53,681,984 50,596,315
Operating profit 469,710,903 697,255,459
Add: Other income - -
Profit before provision and income tax 469,710,903 697,255,459
Less: Provision for own portfolio 29.1 (138,638,964) (275,928,909)
Provision for strategic investment 29.2 (1,621,119) (2,091,988)
Provision for musharaka portfolio 29.3 235,843 3,223,115
(140,024,241) (274,797,782)
General provision (Specific Provision) 30 (432,005) (200,668)
Profit before income tax 329,254,658 422,257,009
Less: Provision for income tax
Current tax (96,030,731) (118,955,228)
Deferred tax 15.1 (220,151) (65,220)
Net profit after income tax 233,003,776 303,236,560
Add: Other comprehensive income - -
Total comprehensive income 233,003,776 303,236,560
The financial statements should be read in conjunction with the annexed notes
and were approved by the Board of Directors on 24 January 2023
and were signed on its behalf by:

K. M. HASAN & CO.
DVC:2302011758AS984340

Amount in Taka
Retained
Particulars Paid-up Capital Capital Reserve Total Equity
Earnings
Opening balance as at 01 January 2022 2,700,000,000 25,494,019 1,030,958,346 3,756,452,365

Transferred to Capital Reserve - 30,323,656 (30,323,656) -
Total comprehensive income during the year - - 233,003,776 233,003,776
Balance as on 31 December 2022 2,700,000,000 55,817,675 1,233,638,466 3,989,456,142

Amount in Taka
Retained
Particulars Paid-up Capital Capital Reserve Total Equity
Earnings
Opening balance as at 01 January 2021 2,700,000,000 - 888,215,805 3,588,215,805
Transferred to Capital Reserve - 25,494,019 (25,494,019) -
Total comprehensive income during the year - - 303,236,560 303,236,560
Interim Dividend - - (135,000,000) (135,000,000)
Balance as at 31 December 2021 2,700,000,000 25,494,019 1,030,958,346 3,756,452,365

K. M. HASAN & CO.
DVC:2302011758AS984340

Statement of Cash Flows
2022 2021
Taka Taka
A. Cash flows from operating activities:

Net profit after tax 233,003,776 303,236,560
Adjustment for non-cash items:
Depreciation 3,619,679 2,865,055
Gain on sale of non-current asset (597) 63,745
Provision for unrealized (gain)/loss 140,024,241 274,797,783
143,643,322 277,726,582
Cash flow before working capital changes 376,647,098 580,963,143
Changes in working capital:
Increase/(decrease) in accounts payable (240,955,146) 52,906,980
Increase/ (decrease) in provision for income tax (5,836,014) 18,069,283
Increase /(decrease) in accrued expenses 734,018 2,022,337
Increase/ (decrease) in other current liabilities (352,327) (8,574,685)
Decrease/ (increase) in other assets (8,868,871) (4,424,923)
Decrease /(increase) in deferred tax assets 220,151 65,221
Decrease/ (increase) in advance, deposit & prepayments (7,072,350) 2,399,520
Decrease/ (increase) in accounts receivable 4,461,135 (932,973)
(257,669,405) 61,530,760
Net cash flows from operating activities 118,977,694 642,493,903
B. Cash flows from investing activities:
Acquisition of Non-Current assets (34,240,064) (1,357,349)
Sale of non-current asset 22,000 11,270
Investments in securities (8,951,658,248) (16,989,846,732)
Sale of investment in securities 8,690,861,435 16,413,765,715
Investments in MTDRs (186,624,999) 184,786,249
Net cash flows in investment activities (481,639,877) (392,640,847)
C. Cash flows from financing activities:
Interim dividend (135,000,000) -
Net cash flows from financing activities (135,000,000) -
Net increase/(decrease) in cash & cash equivalents (A+B+C) (497,662,184) 249,853,057
Add: Cash & cash equivalents at the beginning of the year 700,218,899 450,365,842
Cash and cash equivalents at the end of the year 202,556,715 700,218,899
Place: Dhaka, Bangladesh

Date: 01 February 2023

1.0 Company and its activities:
1.1 Status of the company
The Company was incorporated on the 22 March 2010 (reg. no. C-83375) under the Companies Act, 1994 as a public limited
company. It is a subsidiary company of Islami Bank Bangladesh Limited (IBBL) that holds all the shares of the company except
154 (one hundred fifty four) shares being held by sixteen (16) individual shareholders. The registered office of the company is
situated at 20, Dilkusha C/A, Motijheel in Dhaka, Bangladesh.
1.2 Nature of business
The main objective of the company is to carry on the business of a stock broker and stock dealer that is to buy, sell and deal in
shares, stocks, debenture, bonds and other securities, as well as to carry on any business as permissible for a broker and dealer
duly licensed by the Bangladesh Securities and Exchange Commission (BSEC).
2.0 Significant accounting policies and basis of preparation of financial statements
2.1 Statement of compliance
The financial statements have been prepared and presented in accordance with
a) International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS).
b) The Company Act, 1994.
c) The Securities & Exchange Rules, 2020 (As amended),
d) Bangladesh Securities & Exchange Commission (Public Issue) Rules, 2015
e) Securities and Exchange Commission (Stock-Dealer, Stock Broker and Authorized Representative) Rules, 2000
f) Other relevant laws and regulations applicable in Bangladesh
2.2 Basis of measurement
The financial statements have been prepared based on historical cost convention basis. The accounting policies, unless otherwise
stated, have been constantly applied by the Company and are consistent with those of the previous year.
2.3 Going concern
The Company has adequate resources to continue in operation for foreseeable future. For this reasons the directors continue
to adopt going concern basis in preparing the financial statements. The current credit facilities and adequate resources of the
Company provide sufficient funds to meet the present requirements of its existing businesses and operations.
2.4 Components of financial statements
The financial statements referred to here comprise:
a. Statement of Financial Position As at 31 December 2022
b. Statement of Profit or Loss for the year ended 31 December 2022
c. Statement of Changes in Equity For the year ended 31 December 2022
d. Statement of Cash Flows and for the year ended 31 December 2022
e. Notes to the Financial Statements for the year ended 31 December 2022
2.5 Statement of cash flows
Statement of cash flows is prepared in accordance with the International Accounting Standard-7 "Statement of Cash Flows"
under indirect method.
These financial statements cover from 01 January 2022 to 31 December 2022.
2.7 Property, plant and equipment
All property, plant and equipment are stated at cost less accumulated depreciation as per IAS-16 “Property, Plant and Equipment".
The cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing the assets to its
working condition for its intended use inclusive of inward freight, duties and non-refundable taxes.
The company recognizes the cost of purchasing new assets or cost of replacing new assets in the carrying amount of an item of
property, plant and equipment when that cost is incurred if it is probable that the future economic benefits embodied with the item
will flow to the company and the cost of the item can be measured reliably. Expenditure incurred after the assets have been put
into operation, such as repair and maintenance is normally charged off as revenue expenditure in the period in which it is incurred.

2.7.1 Depreciation policy
Depreciation is charged at the following rates on a straight line method on motor vehicles and computers and other assets are
depreciated on reducing balance method according to their respective percentage given below. Depreciation is charged from the
date of acquisition of particular assets and up to the date of disposal.
Items Rate Method

Mechanical appliances 20-25% Reducing balance
Furniture and fixtures 10-20% Reducing balance
Computers 25% Straight line
Motor vehicles 20% Straight line
Software 25% Straight line
2.8 Investment in TREC (Membership)

Investment in Stock Exchanges for TREC (Membership) are stated at cost. The acquisition cost of TREC (Membership)
comprises its purchase price and any directly attributable cost of completing compliance requirements relevant to it inclusive of
stamp duty and non-refundable taxes, etc.
As per the Demutualization Act, 2013 Membership renamed as Trading Right Entitlement Certificate (TREC), DSE has allotted
total 7,215,106 Ordinary Share at a face value of Taka 10.00 each against acquisition cost of Tk. 2,44,53,399 while CSE has allotted
total 4,287,330 Ordinary Shares at face value of Taka 10.00 each against acquisition cost of Taka 28, 00,00,000. DSE and CSE have
transferred 28,86,042 Shares & 17,14,932 Shares (i.e. 40% of total allotment shares) to the BO account controlled by the IBSL. The
remaining 60% of allotment shares of both Stock Exchange have been kept under blocked account control by them. During the year
2018, DSE sold out 25% of total allotment shares i.e. 18,03,777 to Shenzhen Stock Exchange and Shanghail Stock Exchange of
Chaina @ Tk. 21/- per share. At present balance of DSE allotted share 54,11,329 against acquisition cost of Tk.1,83,40,049/- after
25% sold out. Since there is no active market for shares of DSE and CSE and the fair value of the said investment could not be reliably
measured.
2.9 Preliminary and deferred revenue expenses

All the preliminary and deferred revenue expenses have been recognized as assets and as per Board's decision all these assets will
be amortized over the period of 5 (five) years or at a rate of 20% commencing from the year 2011. All these assets are stated in
financial position at cost less accumulated amortization.

Cash and cash equivalents comprise cash in hand and cash at bank, which are held and available for use by the company without
any restriction and are readily convertible to a known amount of cash and that are subject to an insignificant risk of change in
value.
2.11 Investment in securities

Investment in securities means purchase of shares of quoted/listed companies in DSE and CSE through stock dealer account.
Investment is made in shariah complied securities. Investment in securities is categorized as held for trading as per IAS 39 and
valued at market value on the last date of reporting period and relevant unrealized gain /(loss) is recognized in Statement of
Profit or Loss As per directive # SEC/CMRRCD/2009-193/203 dated 28 December 2017 of Bangladesh Securities and Exchange
Commission and further directive # BSEC/Servileance/ Spokesman (5th part)/ 2019/196 dated 16 July 2020, IBSL kept provision
against such unrealized loss for the period ended 31 December 2022.
2.12 Accounts receivables
Receivables are recognized when there is a contractual right to receive cash or another financial asset from another entity.
2.13 Advance, deposit and prepayments
Advances are initially measured at cost. After initial recognition, advances are carried at cost less deductions, adjustments or
charges to other account heads. Deposits are measured at payment value. Prepayments are initially measured at cost. After initial
recognition, prepayments are carried at cost less charges to income statement.
2.14 Advance income tax
The amount of advance income tax are (a) Payment made through payment order under section 64 and (b) Tax deduction at source
(TDS). TDS mainly deduction of tax at sources (i) By bank on profits arisen from bank deposits (SND and MTDR) (ii) By Dhaka
Stock Exchange Limited and Chittagong Stock Exchange Limited on trading turnover and (iii) Against dividend income received
from securities owned by the company under portfolio investment.
2.15 Provision for income tax
Provision for current tax is made in accordance with the provision of the Income Tax Ordinance, 1984 and subsequent amendments
made thereto from time to time.

2.16 Deferred taxation
Deferred tax liabilities are the amount of income taxes payable in future periods in respect of taxable temporary differences.
Deferred tax assets are the amount of income taxes recoverable in future periods in respect of deductible temporary differences.
Deferred tax assets and liabilities are recognized for the future tax consequences of timing differences arising between the carrying
values of assets, liabilities, income and expenditure and their respective tax bases.
Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantially enacted at the
reporting date. The impact on the account of changes in the deferred tax assets and liabilities have also been recognized in the
statement of Profit or Loss as per IAS-12 "Income Taxes".
2.17 Share Capital
Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial assets.
2.18 Investment from IBBL
Investment has taken from its parent company, Islami Bank Bangladesh Limited under mudaraba mode for investment in stocks,
investment in placement share and investment in margin account etc.
2.19 Revenue recognition
Revenue is recognized only when it is probable that the economic benefits associated with the transaction will flow to the
company in accordance with the International Financial Reporting Standard (IFRS) 15 “Revenue form contracts will customers”:
2.20 Dividend income
All dividends received or receivable against the investment in securities held both under dealer account, strategic investment
account and Musharaka Investment have been considered as dividend income in statement of comprehensive income. Dividend
income is recognized on accrual basis.
2.21 Capital gains from direct investment
The difference between cost price and net sales price of the securities is considered as capital gain from direct investment.
2.21.1 Musharaka investment and income
Musharaka investment means the margins (Investment facilities) provided to eligible clients under brokerage operation in
Musharaka principle/ mode of finance. As per Musharaka principle, profits arisen through capital gain and dividend from this
investment are shared between company and client as per agreed ratio and loss is shared as per equity participation ratio.
Investment is valued at market value on the last date of reporting period and relevant unrealized gain (Loss) is recognized in
income statements As per directive # SEC/CMRRCD/2009-193/203 dated 28 December 2017 of Bangladesh Securities and
Exchange Commission and further directive # BSEC/Servileance/ Spokesman (5th part)/ 2019/196 dated 16 July 2020, IBSL kept
provision against such unrealized loss for the period ended 31 December 2022.
2.22 Brokerage commission
Brokerage commission is recognized as income when selling or buying order executed.
2.23 Provisions
As per IAS 37, all provision is recognized on the financial statement date if, as a result of past events, the company has a present
legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation.
2.24 Earnings per share
Basic diluted earnings per share has been calculated in accordance with IAS 33 “Earnings per Share” which has been shown on
the face of the profit or loss account. This has been calculated by dividing the profit attributable to the ordinary shareholders by
the weighted average number of ordinary shares outstanding during the year.
2.25 Event after the reporting period
As per IAS - 10 "Events after the Reporting period", events after the reporting period are those events, favorable and unfavorable,
that occur between the end of the reporting period and the date when the financial statements are authorized for issue. Two types
of events can be identified:
i) those that provide evidence of conditions that existed at the end of the reporting period (Adjusting events after the reporting
period) and
ii) those that are indicative of conditions that arose after the reporting period (Non- adjusting events after the reporting period).
There was no material events which have occurred after the reporting period which could affect the values stated in the financial
statements.
2.26 Related party transaction
As per IAS 24 “Related Party Disclosures”, a related party is a person or entity that is related to the entity (i.e. IBSL) that is
preparing its financial statements. Related party transaction is a transfer of resources, services, or obligations between a reporting
entity and a related party, regardless of whether a price is charged as per BAS 24.
Related Parties include the Company's Directors, key management personnel, associates, companies under common directorship
etc. as per IAS 24 “Related Party Disclosures”.
All transactions involving related parties arising in the normal course of business are conducted as arm’s length transactions.
Details are given in Note 31

2.27 Authorization of the financial statements for issue
The financial statements of the company have been authorized for issue by the Board of Directors on 24 January 2023.
The financial statements are presented in Bangladeshi Taka (BDT) currency, which is the company’s functional currency.
2.29 Money Laundering Risk Management
In order to ensure the AML / CFT compliance, IBSL is committed to complying with all the applicable Rules of the Money
Laundering Prevention Act, 2012, Anti-Terrorism Act, 2009 and BFIU Circulars, FATF Recommendations. The company has
formed an independent Central Compliance Unit (CCU) under the leadership of the Chief Anti Money Laundering Compliance
Officer (CAMLCO) and established a separate division namely Money Laundering and Terrorist Financing Prevention Division
(MLTFPD). IBSL has introduced uniform Account Opening Forms, Customer On-boarding, KYC (know Your Customer)
profile, TP (Transaction Profile) and STR (Suspicious Transaction Report), CTR (Cash Transaction Report), sanction screening,
transaction monitoring in the company as per instruction of Bangladesh Financial Intelligence Unit (BFIU) and Bangladesh
Securities and Exchange Commission (BSEC). To establish effective Anti-Money Laundering drive at Head office extension,
Branch and Digital Booth level, IBSL appoints BAMLCO and ensures AML rating systems through Self-Assessment Report &
Independent Testing procedure as per instruction of Bangladesh Securities and Exchange Commission (BSEC).
2.30 Director’s responsibility on financial statements
The Board of Directors of the Company is responsible for the preparation and presentation of these financial statements.
2.31 General
a) The figures appearing in these financial statements are expressed in Taka currency and rounded off to the nearest Taka unless
otherwise stated.
b) Previous year's figures have been rearranged, where necessary, to conform to current year's presentation.
2022 2021
Taka Taka
3 Cash and Bank Balance
IBSL account (note-3.1) 33,706,661 286,937,441
Customer account (note-3.2) 168,850,054 413,281,458
202,556,715 700,218,899
3.1 IBSL account
Cash in hand (IBSL account) 15,000 -
Islami Bank Securities Limited with IBBL(MSA 20502130201438818) 14,345,477 271,804,959
IBSL Stock Dealer A/C with AIBL (MSND 0421220000826) 16,777,959 13,681,276
Islami Bank Securities Limited Statigic Investment A/C with SIBL (MSND 0021360003398) 2,568,225 1,451,206
33,706,661 286,937,441
3.2 Customer account:
Cash in hand (Customer account) 4,000 134,300
IBSL Customer A/C with IBBL (AWCA 20502130100099516) 16,891,844 99,468,864
IBSL Customer A/C with AIBL (AWCA 0421020005238) 98,462,479 64,426,602
IBSL Customer A/C with SIBL (MSND 0021360003275) 53,491,731 249,251,692
168,850,054 413,281,458
4 Investment in MTDR:
Opening balance 4,813,375,001 4,998,161,250
Add: New/ reinvestment during the year 1,936,653,906 1,783,036,620
6,750,028,906 6,781,197,870
Less: Encashment during the year (1,750,028,907) (1,967,822,869)
5,000,000,000 4,813,375,001
5 Receivable from Securities Trading:
Receivable from DSE activities (note-5.1) 6,348,948 10,115,415
Receivable from CSE activities (note-5.2) 46,033 -
6,394,981 10,115,415
5.1 Receivable from DSE:
Receivable from DSE (against A, B, G & N category):(note-5.1.1) 6,348,948 9,960,831
Receivable from DSE (against Z category):(note-5.1.2) - 154,584
6,348,948 10,115,415

2022 2021
Taka Taka
5.1.1 Receivable from DSE (against A, B, G & N category) :
Receivable from Broker 2,571,768 -
Receivable from Dealer 3,777,180 9,960,831
6,348,948 9,960,831
5.1.2 Receivable from DSE (against Z category):
Receivable from Broker - 154,584
Receivable from Dealer - -
- 154,584
5.2 Receivable from CSE:
Receivable from CSE (against A, B, G & N category) (note-5.2.1) 46,033 -
46,033 -
5.2.1 Receivable from CSE (against A, B, G & N category) :
Receivable from Broker 46,033 -
46,033 -
6 Receivable from margin clients:
Musharaka portfolio (note-6.1) 9,582,371 10,545,550
Bai-muajjal investment (note-6.2) 30,573,949 6,241,245
40,156,320 16,786,794
6.1 Musharaka portfolio
Opening balance at cost 13,825,524 17,669,020
Add: Shares purchased/(sold) during the year (1,199,022) (3,843,496)
Closing balance of investment at cost 12,626,502 13,825,524
Less: Provision against un-realized gain/(loss) (note-6.1.1) (3,044,132) (3,279,974)
9,582,371 10,545,550
6.1.1 Provision against unrealized gain/(loss)
Opening balance (3,279,974) (6,503,089)
Add: Addition during the year (Note: 29.3) 235,843 3,223,115
Closing balance (3,044,132) (3,279,974)
6.2 Bai-muajjal investment
Opening balance at cost 6,241,245 -
Add: Shares purchased/(sold) during the year 24,332,703 6,241,245
Less: Provision against un-realized gain/(loss) - -
30,573,949 6,241,245
7 Receivable from others
Receivable arises from fee, commission & charges 341,645 1,082,346
341,645 1,082,346
8 Investment in securities
Own portfolio (note-8.1) 3,209,508,942 3,111,697,494
Strategic portfolio (note-8.2) 33,167,290 33,575,690
Own subscription in IPOs but not yet allotted - 21,400,000
3,242,676,233 3,166,673,184
As per directive # SEC/CMRRCD/2009-193/203 dated 28 December 2017 of Bangladesh Securities and Exchange Commission
and further directive # BSEC/Servileance/ Spokesman (5th part)/ 2019/196 dated 16 July 2020, IBSL kept provision against
such unrealized loss for the period ended 31 December 2022.
8.1 Own portfolio
Opening balance at cost 3,991,534,934 3,440,769,516
Add: Shares purchased during the year 8,926,112,826 16,960,687,636
Less: Cost of shares sold during the year (8,689,662,413) (16,409,922,219)
Closing balance of investment at cost 4,227,985,347 3,991,534,934
Less: Provision against un-realized gain/(loss) (note-8.1.1) (1,018,476,404) (879,837,440)
3,209,508,942 3,111,697,494

2022 2021
Taka Taka
8.1.1 Provision against unrealized gain/(loss)
Opening balance (879,837,440) (603,908,531)
Add: Addition during the year (Note: 29.1) (138,638,964) (275,928,909)
Closing balance (1,018,476,404) (879,837,440)
8.2 IBSL Statigic Investment
Opening balance at cost 41,466,222 39,948,372
Add: Shares purchased during the year 1,212,719 1,517,850
Less: Provision against un-realized gain/(loss) ( note 8.2.1) (9,511,651) (7,890,532)
33,167,290 33,575,690
8.2.1 Provision against un-realized gain/(loss)
Opening balance (7,890,532) (5,798,544)
Add: Addition during the year (Note: 29.2) (1,621,119) (2,091,988)
Closing balance (9,511,651) (7,890,532)
9 Other asset
Stock in hand 84,450 -
Balance of Strategic BO account 111,314 536,088
Receivable from dividend 60,399,035 62,308,484
Receivable profit from bank on MTDR 72,617,282 40,098,638
133,212,080 102,943,209
10 Advance, deposit and prepayments
Advance office rent for Head Office (note-10.1) 10,259,500 3,017,500
Advance office rent for Khulna Br. (note-10.2) 1,051,830 1,221,480
Advance income tax (note-10.3) - -
Advance for security deposit of 161 Motijheel Office 213,500 213,500
11,524,830 4,452,480
10.1 Advance office rent for Head Office
Opening balance 3,017,500 6,638,500
Add: paid during the year 10,863,000 -
Less: Charged during the year (3,621,000) (3,621,000)
10,259,500 3,017,500
10.2 Advance office rent for Khulna Branch
Opening balance 1,221,480 -
Add: paid during the year - 1,221,480
Less: Charged during the year (169,650) -
1,051,830 1,221,480
10.3 Advance income tax
Opening balance - -
Add: Income tax paid during the year (note-10.3.1) 101,866,745 100,885,946
Less: Adjustment made during the year (101,866,745) (100,885,946)
- -
10.3.1 Income tax paid during the year
Advance income tax ( Under sec 64 ) 30,453,700 37,840,070
Tax deduction at source (TDS) (note-10.3.1.1) 71,413,045 63,045,876
101,866,745 100,885,946
10.3.1.1 Tax deduction at source (TDS)
TDS against dividend income 22,468,922 20,665,650
TDS from profit of bank deposit 43,103,163 32,882,278
TDS on brokerage commission by CSE 107,376 154,906
TDS on brokerage commission by DSE 5,733,584 9,343,041
71,413,045 63,045,876

2022 2021
Taka Taka
11 Property, plant and equipment
Written Down Value:
Mechanical appliances 2,275,789 1,150,426
Funiture & fixture 6,442,911 5,199,278
Motor vehicles 1,688,485 3,159,985
Computer 1,371,908 1,431,796
Details are given in Annexure -A 11,779,093 10,941,485
12 Intangible Asset
Opening balance 891,568 655,330
Add: During the year 30,000 407,500
Less: Depreciation during the year (268,626) (171,263)
652,942 891,568
13 Investment in TREC (Membership)
DSE 18,340,049 18,340,049
CSE 280,000,000 280,000,000
298,340,049 298,340,049
This represents the acquisition cost of Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) memberships paid
by Islami Bank Securities Limited. According to Exchanges Demutualization Act 2013 and Bangladesh Securities and Exchange
Commission (BSEC) approved Demutualization Scheme, DSE has allotted total 7,215,106 Ordinary Shares at a face value of
Taka 10.00 each against acquisition cost of Taka 24,453,399 while CSE has allotted total 4,287,330 Ordinary Shares at face value
of Taka 10.00 each against acquisition cost of Taka 280,000,000. DSE and CSE have transferred 2,886,042 shares & 1,714,932
shares (i.e. 40% of total allotment shares) to the BO account controlled by the IBSL. The remaining 60% of allotment shares of
both Stock Exchange have been kept under blocked account control by them. During this year DSE sold out 25% of total allotment
shares i.e. 18,03,777 to Shenzhen Stock Exchange and Shanghail Stock Exchange of Chaina @ Tk. 21/- per share. At present
balance of DSE allotted share 54,11,329 against acquisition cost of Tk. 1,83,40,049/- after 25% sold out. Since there is no active
market for shares of DSE and CSE and the fair value of the said investments could not be reliably measured.
14 Investment in Xpert Fintech Limited: 30,000,000 -
Islami Bank Securities Limited hold 3,00,000 fully paid ordinary share (out of 30,00,000 shares) of Tk. 100 each of Xpert Fin-
tech Limited. Xpert Fintech Limited was incorporated on the 20 December 2021 (reg. no. C-177183/2021) under the Companies
Act, 1994 as a limited company to carry on the business for establish the all type of Information Technology
Share capital of Xpert Fintech Limited:
Authorized capital
5,000,000 ordinary shares of Taka 100 each. 500,000,000 -
Paid- up capital
3,000,000 ordinary shares of Taka 100 only each: 300,000,000 -
15 Deferred tax assets/(liabilities)
Deferred tax on fixed assets (Opening) 2,668,079 2,733,299
Deferred tax on fixed assets (note-15.1) (220,151) (65,220)
2,447,928 2,668,079
15.1 Deferred tax on fixed assets
Carrying amount 12,432,035 11,833,053
Tax base 11,631,486 11,615,652
Deductable temporary difference (DTD) (800,549) (217,401)
Deferred tax assets (27.5% of DTD) (220,151) (65,220)
16 Payable to clients
Payable to clients 150,549,169 365,448,785
Payable to clients (IPO) - 20,530,000
150,549,169 385,978,785

2022 2021
Taka Taka
17 Payable to Exchanges
Payable to CSE (Broker) - 407,202
Payable to CSE (Dealer) 261,191 -
Payable to DSE (Broker) 4,025,411 9,399,962
Payable to DSE (Dealer) 2,144 7,111
4,288,745 9,814,275
18 Dividend payable
Add: Addition during the year - 135,000,000
Less: Payment during the year 135,000,000 -
- 135,000,000
19 Accrued expenses
Auditor's fees 92,000 92,000
CDS charges 316,321 568,042
Electricity bills 26,585 19,543
Annual incentive bonus 2,257,836 1,960,820
Internet connectivity expenses 5,000 34,713
Network support 23,000 23,000
Office rent 702,095 472,190
Overtime 36,270 32,830
Professional and consultancy fees 316,250 201,250
Profit on investment of mudaraba fund 1,876,361 1,532,399
Daily Allowance 30,000 -
Service charges 116,400 148,900
Telephone bills 11,678 12,283
Wages 57,972 39,980
Water bills 10,000 9,800
Holiday Allowance 4,000 -
5,881,768 5,147,750
20 Provision for income tax
Opening balance 127,927,144 109,857,861
Add: Provision for income tax during the year 96,030,731 118,955,228
223,957,875 228,813,089
Less: Adjustment made during the year
Tax deduction at source (TDS) (71,413,045) (63,045,876)
Advance income tax (Under sec. 64 of ITO) (30,453,700) (37,840,070)
Payment during the year for 2022 - -
122,091,129 127,927,144
Year wise payment for advance income tax are as follows:
Year 2017 24,852,772 24,852,772
Year 2018 28,788,881 28,788,881
Year 2019 75,172,071 75,172,071
Year 2020 72,802,469 72,802,469
Year 2021 37,840,070 37,840,070
Year 2022 30,453,700 30,453,700
269,909,963 269,909,963

2022 2021
Taka Taka
21 Other current liabilities

Security deposit from clients 1,107,954 1,107,954
Sundry account 141,580 142,305
BO A/C Openng Fee (CDBL) 22,750 51,450
TDS payable 637,268 279,283
VAT payable 76,045 90,631
Accounts Payable 316,000 1,351,750
Payable to clients on bank deposits 4,683,515 4,864,148
Bank charge payable 198,076 80,000
General provision (Specific Provision Note-43) 632,673 200,668
7,815,862 8,168,188
22 Investment from IBBL
Opening balance 4,700,000,000 4,700,000,000
Add: Investment received during the year - -
Less: Repayment/adjustment investment - -
4,700,000,000 4,700,000,000
Investment has taken from Islami Bank Bangladesh Limited under mudaraba mode. These amount has been invested in MTDR &
Securities. The profit sharing ratio between IBBL and IBSL is to be at 50:50 basis.
23 Share capital
Authorized capital
5,000,000 ordinary shares of Taka 1,000 each. 5,000,000,000 5,000,000,000
Paid- up capital
27,00,000 ordinary shares of Taka 1,000 only each:
Name of shareholder No. of shares %
1) Islami Bank Bangladesh Limited 2,699,846 99.994 2,699,846,000 2,699,846,000
2) 16 individual share holders 154 0.006 154,000 154,000
2,700,000 100.00 2,700,000,000 2,700,000,000
Break up of 16 individual shareholders:
Name of shareholder No. of shares %
01) Jb. Mohd. Shamsul Haque 9 5.844 9,000 9,000
02) Jb. Md. Nurul Islam 9 5.844 9,000 9,000
03) Jb. Md. Abdul Jabbar 9 5.844 9,000 9,000
04) Jb. Mohammad Abdul Mannan 10 6.494 10,000 10,000
05) Jb. Md. Mahbub-ul-Alam 10 6.494 10,000 10,000
06) Jb. Md. Shamsuzzaman 10 6.494 10,000 10,000
07) Jb. Mohammad Monirul Moula 10 6.494 10,000 10,000
08) Jb. A.A.M Habibur Rahman 10 6.494 10,000 10,000
09) Jb. Mohammad Ali 10 6.494 10,000 10,000
10) Jb. Abu Reza Mohd. Yeahia 10 6.494 10,000 10,000
11) Jb. A.K.M. Payer Ahammed 10 6.494 10,000 10,000
12) Jb. Md. Abdul Hamid Miah 9 5.844 9,000 9,000
13) Jb. J Q M Habibullah, FCS 9 5.844 9,000 9,000
14) Jb. Taher Ahmed Chowdhury 10 6.494 10,000 10,000
15) Jb.Md. Habibur Rahman Bhuiyan 10 6.494 10,000 10,000
16) Jb. Md.Mostafizur Rahman Siddiquee 9 5.844 9,000 9,000
154 100.00 154,000 154,000

2022 2021
Taka Taka
24 Capital Reserve
Add: During the Period 30,323,656 25,494,019
55,817,675 25,494,019
25 Retained earnings
Opening balance 1,030,958,346 888,215,805
Add: Net profit/ (loss) after tax 233,003,776 303,236,560
Less: Capital Reserve (30,323,656) (25,494,019)
Less: Interim dividend - (135,000,000)
1,233,638,466 1,030,958,346
26 Operating income
Investment income (note-26.1) 589,357,213 832,315,497
Brokerage commissions (note-26.3) 38,610,150 64,361,815
BO account opening fees 124,200 187,500
BO account maintenance fees 644,100 592,700
Commission from IPO 38,475 87,377
Miscellaneous income 27,051 153,605
CDBL charge 1,282,840 3,437,603
Profit from sale of Fixed Assets 597 -
Profit from bank on SND 3,525,145 1,089,079
Profit from Bai-muajjal investment 2,257,422 311,887
Margin Documentation Fees 16,000 10,000
635,883,192 902,547,063
26.1 Investment income
Own fund (Note-26.1.1) 327,790,490 503,110,379
Mudaraba fund (Note-26.2) 261,566,723 329,205,118
589,357,213 832,315,497
26.1.1 Own fund
Cash dividend from own investment 78,630,851 75,589,694
Cash dividend from musharaka investment 188,715 123,156
Profit from bank on SND 2,825,713 -
Profit from MTDR 130,232,472 110,231,413
Capital gains from direct investment (Note-26.1.2) 115,912,739 317,166,116
327,790,490 503,110,379
26.1.2 Capital gains/loss from direct investment
Capital gains /Loss from sale of securities under stock dealer (Note-26.1.2.1) 114,596,676 315,205,778
Capital gain/Loss from musharaka investment (Note-26.1.2.2) 528,118 613,309
Capital gain from strategic investment (Note-26.1.2.3) 787,944 1,347,029
115,912,739 317,166,116
26.1.2.1 Capital gains /Loss from sale of securities under stock dealer
Capital gain 114,596,676 315,205,778
Less: Capital loss - -
114,596,676 315,205,778
26.1.2.2 Capital gain/Loss from musharaka investment
Capital gain 528,118 613,309
528,118 613,309

2022 2021
Taka Taka
26.1.2.3 Capital gain from strategic investment
Capital gain 787,944 1,347,029
787,944 1,347,029
26.2 Mudaraba fund
Cash dividend 37,322,949 37,759,842
Capital gains from sale of securities (Note-26.2.1) 24,530,234 79,527,785
Profit from MTDR 199,713,540 211,917,491
261,566,723 329,205,118
26.2.1 Capital gain from sale of securities
Capital gain 24,530,234 79,527,785
24,530,234 79,527,785
26.3 Brokerage commissions
Commission on CSE turnover 501,047 764,299
Commission on DSE turnover 38,109,103 63,597,517
38,610,150 64,361,815
27 Operating expenses
Profit paid on investment of mudaraba fund (note-27.1) 101,843,962 141,532,399
Brokerage expenses (note-27.2) 3,817,192 5,707,082
License expenses & others expenses (note-27.3) 2,905,279 639,296
CDS charges & BO account maintenance Expenses (note-27.4) 3,923,872 6,816,512
112,490,305 154,695,289
27.1 Profit paid on investment of mudaraba fund 101,843,962 141,532,399
27.2 Brokerage expenses
CSE commission charges 337,060 472,944
DSE transaction fees 2,880,091 4,685,003
Investors' protection fund charges 33,918 48,361
Internet connectivity expenses 566,123 500,774
3,817,192 5,707,082
27.3 License expenses & others expenses
Renewal fees for TREC & DSE, CSE (Stock Broker and Stock Dealer) 551,000 388,834
Authorized representative expense and renewal fees 119,400 78,000
Annual subscription fees 69,115 56,500
Regulatory fees & expenses 393,098 59,416
Excise duty (Govt fee) 1,693,000 -
Renewal fees for trade license 79,666 56,546
2,905,279 639,296
27.4 CDS charges 3,923,872 6,816,512
28 Administrative and general expenses
Salary and allowances (note-28.1) 35,926,451 32,927,833
Rent, taxes, insurances, Service charge and electricity etc. (note-28.2) 7,349,140 6,873,934
Postage, stamps and communication etc. (note-28.3) 460,662 388,372
Stationery, printing and advertisement etc. (note-28.4) 557,475 246,842
Repair and maintenances (note-28.5) 1,895,381 1,805,381
Directors' fees and expenses (note-28.6) 1,340,954 1,406,733
Depreciation (note-28.7) 3,619,679 2,865,055
Other expenses (note-28.8) 2,440,243 3,990,166
Auditor's fees (note-28.9) 92,000 92,000
53,681,984 50,596,315

2022 2021
Taka Taka
28.1 Salary and allowances

Salary 27,170,583 24,239,753
Company's contribution to P.F 1,136,566 663,281
Company's contribution to Gratuity 1,391,563 1,808,340
Annual Incentive Bonus 2,223,096 1,757,100
Eid bonus/festival bonus 2,301,103 2,082,450
Holiday allowance 98,800 73,000
Leave encashment allowance/cash award 135,000 1,117,388
Overtime 497,250 393,959
Wages 582,990 471,212
Daily allowance 389,500 321,350
35,926,451 32,927,833
28.2 Rent, taxes, insurances, Service charge and electricity etc.
Office rents (Note-28.2.1) 6,279,811 5,808,241
Insurance premiums 86,223 131,577
Electricity bills 275,226 234,516
Service charges 707,880 699,600
7,349,140 6,873,934
28.2.1 Office rents
Head Office, 20 Dilkusha 4,164,150 4,164,150
Head Office Extension, 63 Dilkusha 392,251 392,251
Head Office Extension, 161 Motijheel 426,075 434,700
Head Office Extension, DSE Tower Nikunja-2 625,140 625,140
Chattogram Branch 192,000 192,000
Khulna Digital Booth, Akankha Center, Khulna 390,195 -
Sylhet Digital Booth, Zinda Bazar, Sylhet 90,000 -
6,279,811 5,808,241
28.3 Postage, stamps and communication etc.
Conveyances 275,516 69,922
Postage 21,520 8,820
Stamps 16,650 20,703
Telephone bills 146,976 147,397
460,662 246,842
28.4 Stationery, printing and advertisement etc.
Advetisement expenses 391,044 119,195
Printing expense 84,760 82,115
Stationery expenses 81,671 187,062
557,475 388,372
28.5 Repair and maintenances
Motor car running and maintenances 945,250 807,787
Network connectivity support 276,000 293,040
Office expenses 449,819 461,274
Repair and Maintenance 137,450 106,240
Computer accessories 86,862 8,040
Software expensese - 129,000
1,895,381 1,805,381

2022 2021
Taka Taka
28.6 Directors' fees and expenses
Directors' fees for attending board/execurive 696,000 768,000
committee meeting
Add: Value added tax (VAT) 69,600 76,800
Meeting expenses 575,354 561,933
1,340,954 1,406,733
28.7 Depreciation
Mechanical Appliances 326,037 270,301
Computer 971,446 441,391
Furniture & fixture 582,070 510,600
Software 268,626 171,263
Motor vehicles 1,471,500 1,471,500
3,619,679 2,865,055
28.8 Other expenses
Bank charges 18,148 15,902
Bidding charge 21,000 17,000
Branch opening expenses 61,672 339,915
Business development expenses 565,000 637,995
Commission of Bank Guarantee 575,000 575,000
Entertainments 659,888 612,870
Excise duty - 968,000
Newspaper, magazine and periodicals 38,982 27,300
Professional and consultancy fees/Legal fee 145,000 157,625
Rating expenses 53,750 53,750
Loss on sale of fixed assets - 63,745
Training programme expenses 39,800 250,000
Uniforms expenses 17,740 18,844
Security Service 105,600 105,600
Water bills 138,663 146,620
2,440,243 3,990,166
28.9 Auditor's fees
Auditor's fees 80,000 80,000
Value Added Tax (VAT) 12,000 12,000
92,000 92,000
29 Provision against unrealized gain/(loss)
Own portfolio during the year (Note-29.1) (138,638,964) (275,928,909)
Strategic portfolio during the year (Note-29.2) (1,621,119) (2,091,988)
Musharaka portfolio during the year (Note-29.3) 235,843 3,223,115
(140,024,241) (274,797,783)
29.1 Own portfolio during the year
a) Investment in securities at market price as on 31 December 3,070,869,978 3,111,697,494
b) Investment in securities at cost price as on 31 December 4,227,985,347 3,991,534,934
c) Total unrealized gain/(loss) as on 31 December (a-b) (Note-29.1.1) (1,157,115,369) (879,837,440)
d) Opening balance of provision (879,837,440) (603,908,531)
e) Provision required to be provided (c-d) (277,277,929) (275,928,909)
f) Less: Provision yet to be provided carry forward in next year** (138,638,964) -
g) Provision for the year (e-f) (138,638,964) (275,928,909)
and further directive # BSEC/Servileance/ Spokesman (5th part)/ 2019/196 dated 16 July 2020, IBSL kept provision against such
unrealized loss for the period ended 31 December 2022.

2022 2021
Taka Taka
29.1.1 Unrealized gain/(loss)
Opening balance (879,837,440) (967,292,072)
Add: Addition during the year (277,277,929) 87,454,632
Closing balance (1,157,115,369) (879,837,440)
29.2 Strategic Portfolio
a) Investment in securities at market price as on 31 December 31,546,171 33,575,690
b) Investment in securities at cost price as on 31 December 42,678,941 41,466,222
c) Total unrealized gain/(loss) as on 31 December (a-b) (Note-29.2.1) (11,132,770) (7,890,532)
e) Provision required to be provided (c-d) (3,242,238) (2,091,988)
f) Less: Provision yet to be provided carry forward in next year (1,621,119) -
g) Provision for the year (e-f) (1,621,119) (2,091,988)
and further directive # BSEC/Servileance/ Spokesman (5th part)/ 2019/196 dated 16 July 2020, IBSL kept provision against such
unrealized loss for the period ended 31 December 2022.
Opening balance (7,890,532) (14,503,318)
Add: Addition during the year (3,242,238) 6,612,786
Closing balance (11,132,770) (7,890,532)
29.3 Musharaka portfolio during the year
a) Investment in securities at market price as on 31 December 9,582,371 10,545,549
b) Investment in securities at cost price as on 31 December 12,626,502 13,825,524
c) Total unrealized gain/(loss) as on December 31 (a-b) (Note-29.3.1) (3,044,132) (3,279,974)
e) Provision required to be provided (c-d) 235,843 3,223,115
f) Less: Provision yet to be provided carry forward in next year - -
g) Provision for the year (e-f) 235,843 3,223,115
and further directive # BSEC/Servileance/ Spokesman (5th part)/ 2019/196 dated 16 July 2020, IBSL kept provision against
such unrealized loss for the period ended 31 December 2022.
Opening balance (3,279,974) (9,784,163)
Add: Addition during the year 235,843 6,504,189
Closing balance (3,044,132) (3,279,974)
30 General provision (Specific Provision)
Opening balance 200,668 -
Add during the period 432,005 200,668
632,673 200,668
General provision made in the books of account stood at Tk. 6,32,673/- as on 31 December 2022 against 1% of out standing
margin exposures mandatory provision as prescribed by part B of schedule C rule 5(2) of BSEC notification no. BSEC/
CMRRCD/2017-357/221/admin/89 dated 22 May 2019.
31 Nature and type of related party transaction of the company

31.1 Nature and type of related party transaction disclosure of the company
Name of related party Relationship Nature of transaction Amount
Islami Bank Bangladesh Limited Parent- subsidiary Deposit to MSA 720,192,903
(IBBL) Withdraw from MSA 977,652,385
Bank Charge paid 12,461
Payment against office rent 392,251
Tax deduction at source against MTDR 3,560,354
Profit withdraw against MTDR 34,354,813
31.2 Nature and type of balance of related party transaction of the company
Name of related party Relationship Nature of transaction Amount

Bank balance 14,345,477
MTDR balance 680,000,000
Receivable profit on MTDR 8,730,616
Parent- subsidiary Investment from IBBL under Mudaraba 4,700,000,000
(IBBL)
Mode
Profit against MTDR 35,603,537
Accounts payable 46,553,599
Directors Board Member participation fees 765,600
Managing Director & CEO Key Management Short-term employee benefits (Salary 3,266,068
Personnel and allowance)
31.3 Managing Director & CEO (Key Management Personnel)

The Management Director & CEO (key management personnel) shall be avail short term benefits (salary allowance, festival
bonus and annual incentive bonus) from Islami Bank Securities Limited as he is deputed from parents company (i.e. Islami Bank
Bangladesh Limited) so the long-term benefit (post employment benefit, other long-term benefit, termination benefit, and share
based payment) shall be entitlement from parents company.
31.4 Events after the reporting period
i) The Boards of Directors in its meeting held on Dated 24 January 2023 approved the financial statements of the company for
the year ended 31 December 2022 and authorized the same for issue.
ii) No material events occurred after the date of statement of financial position, non-disclosures of which could affect the ability
of the users of these financial statements to make appropriate evaluation.
Place: Dhaka, Bangladesh

Date: 01 February 2023

356
Schedule of property, plant and equipment
ANNUAL REPORT 2022

Annexure -A
Amount in Taka
Cost Depreciation W.D.V.
Particulars Balance as at Balance as at Balance as at Charged dur- Balance as at as at
Addition Adjustment Adjustment 31.12.2022
01.01.2022 31.12.2022 01.01.2022 ing the year 31.12.2022
Mechanical Appliances 2,661,801 1,472,803 588,895 3,545,709 1,511,375 326,037 567,492 1,269,920 2,275,789
Furniture & fixture 6,894,982 1,825,703 - 8,720,685 1,695,704 582,070 - 2,277,774 6,442,911
Motor vehicles 7,357,500 - - 7,357,500 4,197,515 1,471,500 - 5,669,015 1,688,485
Computer 4,172,305 911,558 767,795 4,316,068 2,740,509 971,446 767,795 2,944,160 1,371,908
Total as on 31 December 2022 21,086,588 4,210,064 1,356,690 23,939,962 10,145,103 3,351,053 1,335,287 12,160,869 11,779,093
Amount in Taka
Particulars Balance as at Balance as at Balance as at Charged dur- Balance as at as at
Addition Adjustment Adjustment 31.12.2021
01.01.2021 31.12.2021 01.01.2021 ing the year 31.12.2021
Mechanical Appliances 2,687,730 132,760 158,689 2,661,801 1,392,326 270,301 151,252 1,511,375 1,150,426
Furniture & fixture 6,620,149 503,893 229,060 6,894,982 1,346,586 510,600 161,482 1,695,704 5,199,278
Motor vehicles 7,357,500 - - 7,357,500 2,726,015 1,471,500 - 4,197,515 3,159,985
Computer 4,607,909 313,196 748,800 4,172,305 3,047,918 441,391 748,800 2,740,509 1,431,796
Total as on 31 December 2021 21,273,288 949,849 1,136,549 21,086,588 8,512,845 2,693,792 1,061,534 10,145,103 10,941,485
Schedule of Intangible Asset
Annexure -B
Amount in Taka
Particulars Opening Adjustment Closing Bal- Opening Charged during Closing Bal- as at
Adj. 31.12.2022
Balance Addition Sale/lost ance Balance the year ance
Software 1,073,190 - - 1,073,190 25% 181,623 268,298 - 449,921 623,270
- 30,000 30,000 25% - 328 - 328 29,672
Total 1,073,190 30,000 - 1,103,190 181,623 268,626 - 450,249 652,942

Amount in Taka
Particulars Opening Adjustment Closing Bal- Opening Charged during Closing Bal- as at
Adj. 31.12.2022
Balance Addition Sale/lost ance Balance the year ance
Software 665,690 - - 665,690 25% 10,360 166,423 - 176,783 488,908
- 407,500 407,500 25% - 4,840 - 4,840 402,660
Total 665,690 407,500 - 1,073,190 10,360 171,263 - 181,623 891,568
ANNUAL REPORT 2022

357
Ratio Analysis
Annexure-C
Sl.
Ratio Formula Amount 2022 2021
No.
1 Net Asset Value (NAV) per share Equity 3,989,456,142 1,477.58 1,391.28
No of Outstanding Shares 2,700,000
2 Earning Per Share (EPS) Net profit/ (loss) after tax 233,003,776 86.30 112.31
No of Outstanding Shares 2,700,000
3 Net Operating Cash Flows (NOCF) Per Net cash flows from operating activities 118,977,694 44.07 237.96
Share No of Outstanding Shares 2,700,000

Status of the consolidated customer accounts
Annexure -D
Particulars on specific date Liability (B) Source of Fund (A)
Payable to clients 150,549,169 -
Payable to DSE & CSE as per CNS Report 4,025,411 -
Cheque issued to clients but not debited from the Bank Account - -
Balance of the Consolidated Customer Account as per Bank Statement - 170,768,000
Cheque deposited by clients but not credited to the Bank Account - 4,000
Receivables from DSE & CSE as per CNS Report - 2,617,801
Total 154,574,579 173,389,801
Surplus/(Deficit) (A-B) as on 31 December 2022 18,815,221

Statement Showing Computation of Capital Adequacy
Annexure -E
Amount in Taka
A.Total Eligible capital
Haircut 2022 2021
Components Amount Haircut
Amount Eligible Amount Eligible Amount
Paid-up-capital 2,700,000,000 0% - 2,700,000,000 2,700,000,000
Capital Reserve 55,817,675 0% - 55,817,675 25,494,019
Retained Earnings 1,233,638,466 0% - 1,233,638,466 1,030,958,346
Sum of core capital 3,989,456,141 - - 3,989,456,141 3,756,452,365
Specific Provision 632,673 30% 189,802 442,871 140,467
Sum of supplementary capital 632,673 189,802 442,871 140,467
Total Capital 3,989,899,012 3,756,592,833
B. Total risk requirement Amount in Taka

Applicable Amount
Components Computation Formula Risk Factor Total Amount
2022 2021
Operation Risk Requirement (ORR) Based on Average Annual Gross Income (see 5% 616,753,795 30,837,690 27,710,485
clause (b) of sub-rule (7.1) of rule 7)
Position Risk Requirement (PRR) i. Proprietary positions in Equity securities:
Value of "A" category securities 10% 3,668,896,454 366,889,645 338,246,205
Value of "B/G/N/." category securities 12% 573,055,021 68,766,602 74,731,552
Value of "Z" category instruments 15% - - -
ii. Proprietary positions in MFs & CISs:
Value of listed funds 10% 28,712,814 2,871,281 2,777,617
Counterparty RiskRequirement (CPRR) Exposure of credit facilities to Clients 8% 43,200,451 3,456,036 1,605,342
Liability Risk Requirement (LRR) Annual Revenue Reported in last year 0.20% 303,236,560 606,473 509,880
Total Risk Requirement 473,427,728 445,581,081
ANNUAL REPORT 2022

359
360
Statement Showing Computation of Capital Adequacy
Annexure -E
ANNUAL REPORT 2022

Amount in Taka
A.Total Eligible capital (Schedule-C) 3,989,899,012 3,756,592,833
B. Total risk requirement (Schedule-D) 473,427,728 445,581,081
C. Required capital (120% of total risk requirement) 568,113,274 534,697,297
D. Capital surplus (A-C) 3,421,785,738 3,221,895,536
E. Capital adequacy ratio = Total Capital (TC) *100 842.77% 843.08%

Total Risk Requirement(TRR) i.e 8.42 times i.e 8.43 times
Core capital to 842.67% 843.05%

total risk requirement
Supplementary to total 0.09% 0.03%

risk requirement
F. Operational risk requirement 30,837,690 27,710,485
G. Core capital to operational risk requirement 129 times 136 times

(minimum 100%)
ISLAMI BANK
CAPITAL MANAGEMENT LIMITED

Independent Report
To the Shareholders of
Islami Bank Capital Management Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of “Islami Bank Capital Management Limited“ which comprise the statement of financial position
as at 31 December 2022 and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of
cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the statement of financial position of “Islami
Bank Capital Management Limited“ as at 31 December 2022, and of its financial performance and its cash flows for the year then ended in
accordance with International Financial Reporting Standards (IFRSs), the Securities & Exchange Rules 1987, Companies Act 1994 and other
applicable laws and regulations.
Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditors’ Responsibilities for the audit of the Financial Statements section of our report. We are independent of the company
in accordance with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code),
together with the ethical requirements that are relevant to our audit of the Financial Statements in jurisdictions and we have fulfilled our other
ethical responsibilities in accordance these requirements and with the IESBA Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Other Information
Management is responsible for the other information. The other information comprises all of the information other than the financial
statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and in doing so, consider whether
the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to
be materially misstated.
Responsibilities of management and those charged with governance for the financial statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs, the Companies Act
1994, the Securities & Exchange Rules 1987 and other applicable laws and regulations and for such internal control as management determines
is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends
to liquidate or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:

 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
management but not for the purpose expressing an opinion on the effectiveness of the company’s internal control.
 Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause found the company to cease to
continue as a going concern.
 Evaluate the overall presentation, structure and content of the Company’s financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Report on other Legal and Regulatory Requirements

In accordance with the Companies Act 1994, the Securities & Exchange Rules 1987 and other applicable laws & regulation, we also report
the following:
a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of
our audit and made due verification thereof;
b) in our opinion, proper books of accounts as required by law have been kept by the company so far as it appeared from our examination
of these books; and
c) the statement of financial position and statement of profit or loss and other comprehensive income dealt with by the report are in agreement
with the books of accounts and returns.
Place, Dhaka Khan Wahab Shafique Rahman & Co.

Dated: 31 Jan 2023 Chartered Accountants
Signed By: S M Tanjilur Rahman ACA
Partner
Enrolment No: 1885
Firm Registration: 11970 E.P.
DVC: 2301311885AS844250

As at 31 December, 2022
Amount in Taka
Particulars Notes
31.12.2022 31.12.2021
Assets
Non-current assets 5,618,317 6,823,631
Fixed Assets (Annexure- A) 5 5,618,317 6,823,631
Current assets 820,018,002 834,550,973

Investment in Securities (At Cost) 6 364,506,157 330,944,904
Balance with financial intermediary (IBSL) 10,440 14,241,701
Advance, deposits & prepayments 7 204,500 204,500
Advance against IPO Application - 22,037,500
Advance income tax 8 16,027,873 33,724,024
Other assets 9 10,225,765 3,978,461
Cash & cash equivalents 10 429,043,267 429,419,883
Total assets 825,636,319 841,374,604
Shareholders' Equity & Liabilities:

Shareholders’ equity 419,342,894 408,794,069
Share capital 11 300,000,000 300,000,000
Retained earnings 119,342,894 108,794,069
Liabilities
Non-Current liabilities 300,318,731 300,931,523
Long term liabilities (Mudaraba Fund) 300,000,000 300,000,000
Lease obligation on ROU assets - 565,670
Deferred tax liabilities 12 318,731 365,853
Current liabilities 105,974,694 131,649,012

Accounts payable 13 2,395,351 1,418,041
Quard against MTDR 20,000,000 20,000,000
Provisions for diminution in value of investment in shares 14 61,685,234 45,253,034
Provision for income tax 15 21,829,170 43,927,595
Current portion of long term liabilities (Mudaraba Fund) 16 64,939 50,342
Dividend payable 24 - 21,000,000
Total shareholders' equity & liabilities: 825,636,319 841,374,604
The annexed notes 1 to 25 form an integral part of these financial statements.
Md. Joynal Abedin Mohammad Quamrul Hasan Mohammad Abdur Rahim, FCA
Director Director Managing Director & CEO
Subject to our separate report of even date
Khan Wahab Shafique Rahman & Co.

Place, Dhaka Chartered Accountants
Dated: 31 Jan 2023 Signed By: S M Tanjilur Rahman ACA
Partner
Enrolment No: 1885
DVC: 2301311885AS844250

Statement of Profit or Loss and other Comprehensive Income
For the year ended December 31, 2022
01 January 01 January
Particulars Notes to 31 Dec. to 31 Dec.
2022 2021
Operating income
Income from Investment in Shares 17 30,682,972 81,684,633
Other operating income 18 26,332,807 21,897,150
Total operating income 57,015,779 103,581,783
Operating expenses
Salary & allowances 19 14,289,156 11,701,079
Director's fees & expenses 20 437,647 607,340
Audit fees 57,500 57,500
Bank charges and Excise duty 21 327,900 427,013
Stationery, printing and advertisement etc. 72,882 99,247
Postage, stamps and telecommunication 22 232,543 280,201
Legal expenses - -
Depreciation (Annexure - A) 2,189,169 1,510,627
Financial expense (Mudaraba Investment Profit) 4,064,939 5,050,342
Other operating expenses 23 2,730,921 1,677,515
Total operating expenses 24,402,657 21,410,864
Profit/(loss) before provision 32,613,122 82,170,919
Provisions for diminution of investment in shares 14 16,432,200 43,778,281
Profit/(loss) before taxes 16,180,922 38,392,638
Provision for income tax 5,632,097 17,235,079
Current taxes 15 5,679,219 16,903,607
Deferred tax expenses/(income) 12 (47,122) 331,472
Net profit after tax 10,548,825 21,157,559

Partner
Enrolment No: 1885
DVC: 2301311885AS844250

Amount in Taka
Particulars Retained
Share capital Total Equity
earnings
Balance as at 01 January 2022 300,000,000 108,794,069 408,794,069

Changes in equity during the period:
Issue of share capital - - -
Net profit after tax - 10,548,825 10,548,825
Interim Dividend - -
Balance as at 31 December 2022 300,000,000 119,342,894 419,342,894
Balance as at 01 January 2021 300,000,000 108,636,510 408,636,510

Changes in equity during the period:
Issue of share capital - - -
Net profit after tax - 21,157,559 21,157,559
Interim Dividend - (21,000,000) (21,000,000)
Balance as at 31 December 2021 300,000,000 108,794,069 408,794,069

Partner
Enrolment No: 1885
DVC: 2301311885AS844250

Statement of Cash Flows
Amount in Taka
Particulars 01 January to 01 January to
31 Dec. 2022 31 Dec. 2021

Profit/(loss) before provision 32,613,122 82,170,919
Adjustment:
Less: Provision for investment in shares (16,432,200) (43,778,281)
Add.: Depreciation expenses 2,189,169 1,510,627
Adjusted operating profit before changes in working capital 18,370,091 39,903,265
Changes in working capital: 13,318,641 28,592,811
(Increase)/ decrease in other assets (6,247,304) 121,178
(Increase)/ decrease in Advance, Deposits & Prepayments - 766,800
(Increase)/ decrease in Advance against IPO Application 22,037,500 (16,937,500)
(Increase)/ decrease in Investment in Securities (33,561,253) (219,045,145)
(Increase)/ decrease in Balance with Financial Intermediaries 14,231,261 551,090
Increase/ (decrease) in Accounts Payable 977,310 482,978
Increase/ (decrease) in Quard against MTDR - 20,000,000
Increase/ (decrease) in Current portion of long term liabilities (Mudaraba fund) 14,597 (301,329)
Increase/ (decrease) in Long term liabilities (Mudaraba fund) - 200,000,000
Increase/ (decrease) in Lease obligation on ROU assets (565,670) (823,542)
Increase/ (decrease) in diminution of investment in shares 16,432,200 43,778,281
Less: Tax paid (10,081,493) (6,588,148)
Net cash (used in)/ generated from operating activities (A) 21,607,239 61,907,928
Cash flow from investing activities (B) (983,855) (3,601,383)
Acquisition of Fixed Assets (983,855) (3,601,383)
Cash flows from financing activities (C)
Payment of dividend (21,000,000) -
Net Increase/ (decrease) in cash & cash equivalents (D)=(A+B+C) (376,616) 58,306,545
Add: Opening cash & cash equivalents (E) 429,419,883 371,113,338
Closing cash & cash equivalents (D+E) 429,043,267 429,419,883

Partner
Enrolment No: 1885
DVC: 2301311885AS844250

1. Establishment and status of Islami Bank Capital Management Limited
1.1 Company Profile
Islami Bank Capital Management Ltd. (IBCML) was incorporated on 01 April, 2010 under the Companies Act, 1994 as a Public Limited
Company. It is a subsidiary company of Islami Bank Bangladesh Limited. Islami Bank Bangladesh Limited holds all the shares of the
company except 7 shares which are held by 7 individuals. IBCML has been established as per Bangladesh Bank letter # BRPD (R-1)
717/2010-47 dated 7 February 2010. The registered office of the company is situated at 63 Dilkusha C/A (5th Floor), Dhaka-1000.
The Company obtained license from Bangladesh Securities and Exchange Commission (BSEC) vide its Registration Certificate No.
MB/95/2019 on 31.03.2019 to carry out its merchant banking operations.
1.2 Nature of Business
The principal activities of the company are to carry on business of Merchant Banking in all its aspects including Management of issue,
public offer of shares, stocks, debentures, bonds, etc.; sale or purchase of securities or transfer thereof; fund management for clients,
underwriting of shares, stocks, debentures, bonds, etc.; managing portfolio investments of any person or company by investment in var-
ious avenues, etc. The Company starts its merchant banking business on 30.09.2019. Bangladesh Securities and Exchange Commission
(BSEC) has issued the Depository Participants (DP) license in favour of IBCML in July, 2020.
2. Basis of Preparation, Presentation and Disclosures of Financial Statements

2.1 Statement of Compliance
The Financial Statements have been prepared in compliance with the requirement of the International Financial Reporting Standards
(IFRS) which also cover International Accounting Standards (IASs), the companies Act 1994, Bangladesh Securities and Exchange (
Merchant Banker and Portfolio Manager ) Rules 1996 and other applicable Laws and Regulations.
2.2 Basis of Measurements
These Financial Statements have been prepared on accrual basis of accounting following going concern concept under historical cost
convention.
These financial statements are prepared in Bangladesh Taka (Taka/Tk.), which is the company’s functional currency. All financial infor-
mation presented in Taka has been rounded off to the nearest integer.
2.4 Use of estimates and judgments
Preparing the interim financial statements requires management to make judgments, estimates and assumptions that affect the applica-
tion of accounting policies and the reported amounts of Assets, Liabilities, Income and Expenses. Actual results may differ from these
estimates.
2.5 Applicable accounting standards
The following IASs and IFRSs are applicable for the financial statements for the year ended under review:
IAS - 1 Presentation of Financial Statements
IAS - 7 Statements of Cash Flows
IAS - 8 Accounting Policies, Changes in Accounting Estimates and Errors
IFRS - 9 Financial Instruments
IAS - 12 Income Taxes
IFRS - 15 Revenue from Contracts with Customers
IFRS - 16 Leases
IAS - 24 Related Party Disclosures
IAS - 37 Provisions, Contingent Liabilities and Contingent Assets
2.6 Comparative Information and rearrangement thereof
Comparative figures have been re-arranged whenever considered necessary to ensure better comparability with the current period without
causing any impact on the profit and value of assets and liabilities as reported in the financial statement
2.7 Changes in accounting policies
The Company changes its accounting policy only if the change is required by IFRS or results in the financial statements providing reliable
and more relevant information about the effects of transactions, other events or conditions on the Company’s financial position, financial
performance or cash flows. Changes in accounting policies is to be made through retrospective application by adjusting opening balance
of each affected components of equity i.e. as if new policy has always been applied.
2.7.1 IFRS-16: Lease
In January 2016, the International Accounting Standards Board (IASB) issued IFRS-16. IFRS-16 replaces IAS-17, IFRIC 4, SIC 15 and
SIC 27 which sets out the principles for recognition, measurement, presentation and disclosure of leases which is effective from annual
reporting periods beginning on or after 1 January 2019. IBCML has applied IFRS-16 Leases for the first time with the date of 01 January
2020. As IFRS-16 supersedes IAS-17 Lease, the company has made recognition, measurement and disclosure in the financial statements
as Lessee as per IFRS-16.

Company as lessee:
The Company assesses at initiation of a contract whether the contract is, or contains a lease. That is, if the contract conveys the right
to control the use of an identified asset for a period of time in exchange of consideration, then the Company considers the contract as
a lease contract. The Company recognizes lease liabilities to make lease payment and right-of-use assets representing the right to use
the underlying assets. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any
initial direct costs incurred by the Company, an estimate of any costs to dismantle and remove the asset at the end of the lease, and any
lease payments made in advance of the lease commencement date (net of any incentives received). Subsequent to initial measurement,
the liability will be reduced for payments made and increased for interest/finance cost. On the statement of financial position, right-of-use
assets have been included in property, plant and equipment and lease liabilities have been included in non-current liabilities.
Right-of-Use assets (ROU):

The Company recognises the right-of-use assets (RoU) from the date of 1st January 2020 of the lease. ROU assets are measured at cost
less any accumulated depreciation and impairment of losses and adjusted for any measurement of lease liabilities. The cost of ROU assets
includes the amount of lease liabilities recognised, initial direct cost incurred, and lease payment made at or before the commencement
date less any lease incentives received. Right-of-use assets are depreciated on a straight line basis over the lease term.The Company
assessed its lease contract which has been expired on 31st December 2022 and recognised as RoU of assets as guided by Holding
Company’s’ policy set as per IAS-16 and IFRS-16. The RoU assets are presented in the Note 4 of these financial statements. "
Lease Liabilities
The company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease
liabilities are presented under the title of non-current liabilities
The accounting period of the company covers 12 (Twelve) months from 1st January to 31 December, 2022.
3. Significant accounting Policies
3.1 Basis of accounting

The specific accounting policies selected and applied by the company’s directors for significant transactions and events that have material
effect within the framework of IAS-1 “Presentation of Financial Statements”, in preparation and presentation of financial statements have
been consistently applied throughout the period and were also consistent with those used in earlier years.For a proper understanding of
the financial statements, these accounting policies are set out below in one place as prescribed by the IAS-1 “Presentation of Financial
Statements”. The recommendations of IAS-1 relating the format of financial statements were also taken into full consideration for fair
presentation.
3.2 Consistency
The accounting policies and methods of computation used in preparation of financial statements for the preiod ended 31 December 2022 are
consistent with those policies and methods adopted in preparing the financial statements for the year ended 31 December, 2021.
3.3 Statement of cash flows

The statement of cash flows is prepared using the indirect method as stipulated in International Accounting Standard (IAS) -7 “Statement
of Cash Flows”.
3.4 Investment in Shares

Investment in quoted shares are initially recognised at cost plus transaction costs that are directly attributable to the acquisition of the
shares. After initial recognition, investment in quoted shares has been revalued at cost at reporting date to alignment with parents ac-
counting policies for group accounts as per Bangladesh Bank rules & regulation without considering IFRS. However, required provision
is made if market value is considered as down trend of the reported cost but no unrealised gain is recognised in the profit or loss account.
3.5 Property, Plant and equipment

All Property, Plant and equipment are stated at cost, together with any incidental expenes of cquisition less accumulated depreciation as
per IAS -16 " Property, Plant and Equipment".
Depreciation on fixed asset begins when it is installed and available for use. The rates and methods used are as follows:
Category of Assets Rate (%) of Dep./Discounting Rate Method of Depreciation

Furniture & Fixture 10% Reducing Balance
Mechanical appliances 20% - Do-
Computer 25% Straight Line
Intangible Assets 25% - Do-
Right of Use (ROU)* 5% -
*In case of Right of Use (ROU) depreciation is charged on the basis of IFRS-16.

3.6 Intangible assets
Recognition
The recognition of an item as an intangible asset requires the Company to demonstrate that the item meets the definition of an intangible
asset and the recognition criteria. An intangible asset is recognized as an asset if, and only if, it is probable that expected future economic
benefits that are attributable to the asset will own to the Company and the cost of the item can be measured reliably.
Measurement
An intangible asset is measured at cost less any accumulated amortizations and any accumulated impairment losses. Subsequent
expenditures are likely to maintain the expected future economic benefits embodied in an existing intangible asset rather than meet the
definition of an intangible asset and the recognition criteria. Therefore, expenditure incurred after the initial recognition of an acquired
intangible asset is usually recognized in profit or loss as incurred. The rates used for amortizing intangible assets is 25.00%.
Amortization
The depreciable amount of an intangible asset with a finite useful life shall be allocated on a systematic basis over its useful life.
Amortization begins when the asset is available for use, i.e. when it is in the location and condition necessary for it to be capable of
operating in the manner intended by management.
Cash and cash equivalents comprise cash in hand, cash at bank and term deposits that are readily convertible to a known amount of cash
and that are subject to an insignificant risk of change in value.
3.8 General
The figures appearing in these Financial Statements have been rounded off to the nearest integer.
3.9 Profit on bank deposits

Profit on bank deposits has been recognized as per accrual basis.
3.10 Income Tax

Current Tax:
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the reporting
date and any adjustment to the tax payable in respect of previous years. Provision for current income tax has been made on taxable income
of the Company as per following
Type of income 2022 2021

Business income 37.50% 37.50%
Capital gain 10.00% 10.00%
Other Income (Dividend income) 20.00% 20.00%
3.11 Deferred Tax:

Principle of recognition
Deferred tax is recognized as income or an expense amount within the tax charge, and included in the net profit or loss for the period.
Recognition of deductible temporary difference
A deferred tax asset is recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be avail-
able against which the deductible temporary difference can be utilized, unless the deferred tax asset arises from the initial recognition of
an asset or liability in a transaction that is not a business combination; and at the time of the transaction, affects neither accounting profit
nor taxable profit (tax loss).
Recognition of taxable temporary difference
A deferred tax liability is recognized for all taxable differences, except to the extent that the deferred tax liability arises from the initial
recognition of goodwill; or the initial recognition of an asset or liability in a transaction which is not a business combination; and at the
time of the transaction, affects neither accounting profit nor taxable profit (tax loss).
Measurement
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability
is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
4.00 Prevention of Money Laundering
Money Laundering risk is defined as the loss of reputation and expenses incurred as penalty for being negligent in prevention of money
laundering. For mitigating the risks, Islami Bank Capital Management Limited has formed 05 (Five) members Central Compliance Unit
(CCU) under the leadership of the Chief Anti Money Laundering Compliance Officer (CAMLCO) at Head Office.
The Company has introduced a comprehensive AML Policy namely "POLICY AND GUIDELINES FOR PREVENTION OF MONEY
LUANDERING AND TERRORIST FINANCING RISK MANAGEMENT" under the light of local Laws, Rules & Regulations as well
as international best AML practices duly approved by the Board of Directors, IBCML.
As per approved Policy, IBCML has been conducting various programs to prevent Money Laundering & Terrorist Financing.

Amount in Taka
Particulars
31.12.2022 31.12.2021
5 Fixed Asset
Tangible Assets Cost (a):
Land & Building - -
Furniture & Fixture 2,756,423 2,703,901
Mechanical Appliances 1,424,507 1,350,799
Computer 2,681,260 2,110,927
Motor Vehicles - -
Books & Others - -
Right of Use (ROU) asset for lease obligation 2,459,963 2,172,671
Total -a 9,322,153 8,338,298
Intangible Assets Cost (a.1)
Website 99,500 99,500.00
Software 1,192,500 1,192,500.00
Total -a.1 1,292,000 1,292,000
A. Grand Total (a+a.1) 10,614,153 9,630,298
Accumulated Depreciation on Tangible Assets (b):
Land & Building - -
Furniture & Fixture 634,085 403,671
Mechanical Appliances 552,221 347,660
Computer 1,010,347 409,612
Motor Vehicles - -
Books & Others - -
Right of Use (ROU) asset for lease obligation 2,459,963 1,629,504
4,656,616 2,790,447
Accumulated Depreciation on Intangible Assets (b.1)
Website 41,095 16,220
Software 298,125 -
Total -b.1 339,220 16,220
B. Grand Total (b+b.1) 4,995,836 2,806,667
Written Down Value (A-B) 5,618,317 6,823,631
A schedule of Fixed Assets are given at Annexure-A
6 Investment in Securities
Opening balance of Investment in Securities at cost 330,944,904 111,899,759
Add: Shares purchase during the period 283,799,502 1,090,999,279
Less: Cost of shares sold during the period (250,238,249) (871,954,134)
Closing Balance of Investment in Securities at cost 364,506,157 330,944,904
7 Advance, deposits & prepayments
Security Deposit (CDBL) 200,000 200,000
Security Deposit (T & T ) 4,500 4,500
204,500 204,500

Amount in Taka
Particulars
31.12.2022 31.12.2021
8 Advanced Income Tax

Opening balance 33,724,024 45,314,749
Add: Deducted at source during the period 4,311,415 3,041,110
From Fixed/Savings Deposits 2,248,636 2,128,119
From Dividend 1,845,279 896,866
Other Cases from Issue Management Fees 217,500 16,125
Add: Paid through challan during the period 5,770,078 3,547,038
43,805,517 51,902,897
Less: Adjustment during the year/period (27,777,644) (18,178,873)
Closing balance 16,027,873 33,724,024
9 Other assets
Accrued profit on bank deposits 4,454,345 3,978,461
Dividend Receivable on Listed Share 5,441,494 -
Management Fee receivable 329,926 -
10,225,765 3,978,461
10 Cash & cash equivalents
Cash in hand 5,586 66,640
Cash at bank (Note - 10.1) 429,037,681 429,353,243
429,043,267 429,419,883
10.1 Cash at bank
Union Bank Ltd (MTDR) - -
First Security Islami Bank Ltd (MTDR) - -
Islami Bank Bangladesh Ltd (MTDR) 424,432,856 425,560,752
Islami Bank Bangladesh Ltd (MSND- 000094) 2,282,634 432,396
Islami Bank Bangladesh Ltd (MSND- 014313) 271,255 217,842
Islami Bank Bangladesh Ltd (MSND- 014515) 1,038,630 507,356
Islami Bank Bangladesh Ltd (MSND- 014616) 881,016 196,258
Islami Bank Bangladesh Ltd (MSND- 014414) - -
Islami Bank Bangladesh Ltd (AWCA- 009449) 131,290 2,438,639
429,037,681 429,353,243
11 Share capital
Authorized capital
1,000,000 Ordinary shares @ Tk. 1,000 each 1,000,000,000 1,000,000,000
Issued, subscribed and paid up capital
300,000 Ordinary shares @ Tk.1,000 each fully paid up 300,000,000 300,000,000
Details of shareholders are as under:
No. of shares as at Taka Taka

Name of the shareholders
31.12.2022 31.12.2021 31.12.2022 31.12.2021
Islami Bank Bangladesh Limited 299,993 299,993 299,993,000 299,993,000
Mr. Mohammad Abdul Mannan 1 1 1,000 1,000
Mr. Md. Qaisar Ali 1 1 1,000 1,000
Mr. Md. Omar Faruk Khan 1 1 1,000 1,000
Mr. Md. Saleh Iqbal 1 1 1,000 1,000
Mr. Md. Mosharraf Hossain 0 1 - 1,000
Mr. G. M. Mohammad Gias Uddin Quader 1 0 1,000 -
Mr. Md. Altaf Hossain 1 1 1,000 1,000
Mr. Md. Ashraful Haque 1 1 1,000 1,000
Total 300,000 300,000 300,000,000 300,000,000

Amount in Taka
Particulars
31.12.2022 31.12.2021
12 Deferred Tax Liabilities

Carrying amount 5,618,317 6,823,631
Tax base 4,768,368 5,848,022
Deductible Temporary Difference (DTD) 849,949 975,609
Deferred Tax Liability @ 37.5% of DTD 318,731 365,853
Adjustment with Deferred Tax Assets (Opening Balance) - -
Net Deferred Tax Liabilities 318,731 365,853
13 Accounts payable
Audit Fees 57,500 57,500
Payable to Portfolio Account Holders (DA and NDA) 705,613 172,190
Annual Incentive Bonus Payable 947,512 691,320
Payable Against Printing & Stationery expenses 143,500 -
Payable Against BSEC License Renewal fees 230,000 -
Payable Against BASM yearly fees 57,500 -
Payable Against Professional and Consultant Fees 60,000 133,500
Payable Against RJSC Fees 60,000 115,000
Payable Against Wearing Expenses (CCTV) 49,900 -
Security Deposit 29,012 38,962
Payable Against Exp - Wages 8,396 8,802
Payable Against Exp -Telephone and Mobile Bill (Office) 6,000 6,500
Payable Against Exp -Telephone (Residence) - 1,000
Payable Against Expenditure- CDBL Monthly Bill 3,000 3,000
Payable Against Internet Bill 12,700 12,700
Tax Deducted at Source (TDS) Payable 8,136 35,600
Value Added Tax (VAT) Payable 16,582 141,967
2,395,351 1,418,041
14 Provisions for diminution of investment in shares
Opening Balance 45,253,034 1,474,753
Add: Provision made during the period 16,432,200 43,778,281
Closing Balance 61,685,234 45,253,034
*Amount has been kept as “provision for diminution of investment in shares” following The Bangladesh Securities and Exchange
Commission (BSEC) Circular No. BSEC/CMRRCD/2009-193/196 dated December 28, 2016.
15 Provision for income tax (Current Tax)
Opening Balance 43,927,595 45,202,861
Add: Provision made during the period 5,679,219 16,903,607
Less: Adjustment during the period (27,777,644) (18,178,873)
Closing Balance 21,829,170 43,927,595
* Total amount of Tk. 5,679,219/- is made provision during the year. Out of which Tk. 5,274,768/- is made against the income from
business of the company. Remaining amount of Tk. 404,451/- is provided as prior years adjustment related with Accounting Year
2018 corresponding Assessment Year 2019-20 for Tk. 120,649/-, Accounting Year 2019 corresponding Assessment Year 2020-21
for Tk. 17,551/- and Accounting Year 2020 corresponding Assessment Year 2021-22 for Tk. 266,251/-.
** The pending issues related with Income Tax Assessment of the company for the year 2018, 2019 and 2020 have already been
completed and we have paid all dues in this regard. Adjustment is made for an amount of Tk. 27,777,644/- which is the actual Tax
demand amount of Income Tax authority and paid by the company to the Govt. Exchequer. The amount was earlier accounted for as
Advance Income Tax in the Assets side and as Provision for Income Tax in Liabilities side of the company's Financial Statements.
16 Current portion of long term liabilities (Mudaraba Fund)
Opening Balance 50,342 351,671
Add: Profit payable on investment of mudaraba fund during the preiod 4,064,939 5,050,342
Less: Profit paid on investment of mudaraba fund during the preiod (4,050,342) (5,351,671)
Closing Balance 64,939 50,342
Investment has taken from Islami Bank Bangladesh Limited under mudaraba mode and the Profit sharing ratio between IBBL and
IBCML is 50:50 basis.

Amount in Taka
01 January to 01 January to
Particulars
31 December 31 December
2022 2021
17 Income from Investment in shares

Capital gain/(loss) from investment in shares 15,856,332 77,175,302
Dividend income 14,826,640 4,509,331
30,682,972 81,684,633
18 Other operating income
Profit earned on bank deposits (Note - 18.1) 22,962,250 21,160,015
Brokerage Commission 638,258 227,373
Portfolio Management Fees 571,999 268,162
BO account opening & maintenance fee 15,300 10,350
Issue Management Fees 2,145,000 231,250
26,332,807 21,897,150
18.1 Profit earned on bank deposits:
First Security Islami Bank Ltd. - 73,014
Union Bank Ltd. - 204,366
Islami Bank Bangladesh Limited (Note:18.1.1) 22,962,250 20,882,635
22,962,250 21,160,015
18.1.1 Profit earned from Islami Bank Bangladesh Limited
Profit earned from MTDR Account 22,934,746 21,156,286
Profit earned from MSND Account 27,504 3,729
22,962,250 21,160,015
19 Salary & Allowances:
Basic Pay 5,267,819 4,081,412
Allowances 6,142,434 5,171,065
Bonus 1,894,056 1,411,220
Contribution to Provident Fund 445,339 246,520
Overtime 70,888 -
Contribution to Gratuity Fund 227,220 240,000
Contribution to Superannuation Fund 241,400 550,862
14,289,156 11,701,079
20 Director's fees & expenses
Directors Honorarium 290,400 413,600
Directors Refreshment 147,247 193,740
437,647 607,340
21 Bank charge
Account Maintenance Fee 5,290 5,025
Excise duty 309,000 391,150
Bank Charge - Instrument Clearing, Cheque Book Issue etc. 13,610 30,838
327,900 427,013
22 Postage, stamps and telecommunication
Telephone bill 7,530 27,273
Mobile bill 44,642 42,752
Stamps charge 1,190 12,254
Internet bill 178,793 197,832
Local courier 388 90
232,543 280,201

Amount in Taka
01 January to 01 January to
Particulars 31 December 31 December
2022 2021
23 Other operating expenses

Office expenses 43,060 33,236
TA/DA 29,360 -
Conveyance 45,411 32,420
Entertainment expenses 129,642 98,492
Meeting Expenses 146,105 193,374
CDBL Monthly Bill and BO Maintenance Charge 82,825 29,637
IPO Subscription Fees 21,000 23,000
Business Development Expenses 143,500 405,865
Repair and Office Maintenance Expenses 16,904 5,805
Newspaper, Journal and Periodicals 17,262 12,268
Training Fees 80,727 6,900
Computer Expenses 77,426 47,775
Lighting and Wearing Expenses 49,900 46,613
Professional/Membership fees 589,500 154,375
License Fees 494,357 257,633
RJSC fees 62,891 115,000
Special National Days Observing Expenses 19,900 -
Safety materials (COVID-19) & Special aid 47,602 37,384
AGM Related Expenses 270,000 -
Maintenance of Software 3,000 -
Recruitement Expnses 189,729 -
Finance charge on lease rental and VAT 170,820 177,738
2,730,921 1,677,515
24 Dividend Payable
Opening Balance 21,000,000 -
Add: Dividend declared - 21,000,000
Less: Dividend paid during the period (21,000,000) -
Closing Balance - 21,000,000
25 Related Party Transactions - Disclosure under the IAS-24 (Related Party Disclosure):
Islami Bank Bangladesh Limited (IBBL) is the banker of the company, and also hold 99.99% equity shares. Besides this, the
company maintained MTDR accounts of Tk. 10.96 crore with IBBL's Farmgate branch, Tk. 31.47 crore with IBBL's Foreign Ex-
change Corporate branch. The company also maintained a Mudaraba Investment accounts of Tk. 30.00 crore with IBBL's Foreign
Exchange Corporate Branch.

376
Schedule of Fixed Assets
ANNUAL REPORT 2022

(Annexure - A)
Amount in Taka
Written Written
Cost Depreciation/Amortization
Down Value Down Value
Name of Fixed Assets Addition Adjustment Charged Adjustment
Balance as Total as at Balance as Total as at As at As at
during the during the during the during the
at 01.01.22 31.12.2022 at 01.01.22 31.12.2022 31.12.2022 31.12.2021
Period Period Period Period
1 2 3 4 5 (2+3-4) 6 7 8 9 (6+7-8) 10 11
A. Tangible Assets - -
Land & Building - - - - - - - - - -
Furniture & Fixture 2,703,901 52,522 - 2,756,423 403,671 230,414 - 634,085 2,122,338 2,300,230
Mechanical appliances 1,350,799 73,708 - 1,424,507 347,660 204,561 - 552,221 872,286 1,003,139
Computer 2,110,927 570,333 - 2,681,260 409,612 600,735 - 1,010,347 1,670,913 1,701,315
Motor Vehicles - - - - - - - - - -
Books & Others - - - - - - - - - -
Right of Use (ROU) asset 2,172,671 287,292 - 2,459,963 1,629,504 830,459 - 2,459,963 - 543,167
for lease obligation
Total 8,338,298 983,855 - 9,322,153 2,790,447 1,866,169 - 4,656,616 4,665,537 5,547,851
B. Intangible Assets
Website 99,500 - - 99,500 16,220 24,875 - 41,095 58,405 83,280
Software 1,192,500 - - 1,192,500 - 298,125 - 298,125 894,375 1,192,500
Total Intangible Assets 1,292,000 - - 1,292,000 16,220 323,000 339,220 952,780 1,275,780
Total 9,630,298 983,855 - 10,614,153 2,806,667 2,189,169 - 4,995,836 5,618,317 6,823,631
Standard Disclosure Index
Disclosure checklist to the key sections of the Annual Report 2022
Items Ref. Page No.

Corporate Objectives, Values & Structure
Vision and Mission 10,11
Overall strategic objectives 12
Core values and code of conduct / ethical principles 13,14
Profile of the Company 43,80,8, 82
Director’s profiles and their representation on Board of other companies & Organization Chart 44-50, 55-76
Management Report / Commentary and analysis including Director’s Report / Chairman’s Review/CEO’s 20-36, 77-108,
Review etc. 194-217
A general review of the performance of the company 86-107, 215-217
Description of the performance of the various activities / products / segments of the company and its group 204-217
companies during the period under review
A brief summary of the Business and other Risks facing the organization and steps taken to effectively manage 150-181
such risks
A general review of the future prospects/outlook 20-36
Information on how the company contributed to its responsibilities towards the staff (including health & safety) 119-122
Information on company's contribution to the national exchequer & to the economy 213
Sustainability Reporting 182-193
Social responsibility initiatives (CSR) 187-189
Environment related initiatives 183-187
Environment & Social Obligations 183-187
Integrated Reporting 212
Appropriateness of Disclosure of Accounting policies and General Disclosures 264
Disclosures of adequate accounting policies relevant to assets, liabilities, income and expenditure, cash flows, etc. 255-265
in line with applicable financial reporting standards
Any Specific accounting policies 255-260
Impairment of Assets 267-268
Changes in accounting policies / Changes in accounting estimates 264, 368
Accounting policy on subsidiaries 368
Segment Information 207
Comprehensive segment related information bifurcating segment revenue, segment results and segment capital 207-211
employed
Availability of information regarding different segments and units of the entity as well as non-segmental entities/
units
Segment analysis of
Segment Revenue
Segment Results
Turnover
Operating profit 207
217
Carrying amount of net segment assets
238-327
Financial Statements (Including Formats)
Disclosures of all contingencies and commitments
Comprehensive Related party disclosures
Disclosures of remuneration & facilities provided to directors & CEO
Statement of Financial Position / Balance Sheet and relevant schedules
Income Statement / Profit and Loss Account and relevant schedules

Statement of Changes in Equity / Reserves & Surplus schedule
Disclosure of type of share capital
Statement of Cash Flow
238-327
Consolidated Financial Statement (CFS)
Extent of compliance with the core IAS/IFRS or equivalent National Standards
Disclosures / contents of notes to accounts
Information about Corporate Governance 19-149
Board of Directors, Chairman and CEO 20-36, 46-50
Audit Committee (composition, role, meetings, attendance, etc), Internal Control & Risk Management 116-117, 125
Ethics And Compliance 119, 180
Remuneration and other Committees of Board 116-117, 122
Human Capital 119
Communication To Shareholders & Stakeholders 122
- Information available on website 202
- Other information
Management Review and Responsibility 194-237
Disclosure by Board of Directors or Audit Committee on evaluation of quarterly reports 214,219-221
Any other investor friendly information
Risk Management & Control Environment
Description of the Risk Management Framework
Risk Mitigation Methodology 150-181
Disclosure of Risk Reporting
Stakeholders Information 200
Distribution of shareholding (Number of shares as well as category wise, e.g Promoter group, FII etc)
126,200
Shares held by Directors/Executives and relatives of Directors/Executives
Redressal of investors complaints 202-203
Graphical/ Pictorial Data 204-206
Earnings per Share
Net Assets
Stock Performance 204-217
Shareholders’ Funds
Return on Shareholders Fund
Horizontal/Vertical Analysis including following 208-209
Operating Performance (Income Statement)
Total Revenue
Operating profit
Profit Before Tax
Profit after Tax
EPS
Statement of Financial Position (Balance Sheet)
Shareholders Fund
Property Plant & Equipment 215-217, 238-327
Net Current Assets
Long Term Liabilities/Current Liabilities
Profitability / Dividends / Performance and Liquidity Ratios
Net Interest income Ratio
Profit before provisions and Tax
Price earning ratio
Capital Addequacy Ratio
Return on Capital Employed
Debt Equity Ratio

Statement of Value Added and Its Distribution 211
Government as Taxes 212
Shareholders as dividend 216-217
Employees as bonus/remuneration 253
Retained by the entity 253
Market share information of the Company’s product/services 213
Economic value added 211
Additional Disclosures
Human Resource Accounting
120
Any other good additional disclosures (Independence certification e.g. GNV /GRI)
Specific Areas for Banking Sector
Disclosure of Ratings given by various rating agencies for the Bank and for its Instruments issued by /of Bank. 127
For eg. FD, CD, Tier I perpetual Bonds
Details of Advances/investment portfolio Classification wise as per the direction issued by the central bank of the 293-296
respective countries
Disclosure for Non Performing assets
Movements in NPA
296
Sector-wise breakup of NPA
Movement of Provisions made against NPA
Details of accounts restructured as per regulatory guidelines 297
Maturity Pattern of Key Assets and Liabilities (ALM) 257
Classification and valuation of investments as per regulatory guidelines/Accounting Standards 293-296
Business Ratio/Information
Statutory Liquidity Reserve (Ratio)
Net interest income as a percentage of working funds / Operating cost - Efficiency ratio
Return on Average Asset
Cost / Income ratio
Net Asset Value Per Share
215-217
Profit per employee
Capital Adequacy ratio
Operating profit as a percentage of working funds
Cash Reserve Ratio / Liquid Asset ratio
Dividend Cover ratio
Gross Non-Performing assets to gross advances/Non-Performing Loans (Assets) to Total Loans (Assets)
Details of credit concentration / Sector vise exposures 293-296
The break-up of ‘Provisions and contingencies’ included in the Profit and Loss Account 253
Disclosure under regulatory guidelines
Details of Non-Statutory investment portfolio
Disclosure in respect of assets given on operating & finance lease 264-265
Disclosures for derivative investments
Bank's Network : List of Centers or Branches

Bank’s Network
Zonal Offices 30 Gandaria Branch, Dhaka 76 Donia Branch, Dhaka
1 Dhaka Central Zone 31 Islampur Branch, Dhaka 77 Fatulla Branch, Narayanganj
2 Dhaka South Zone 32 Kaliganj Branch, Dhaka. 78 Gazipur Chowrasta Branch,
3 Dhaka North Zone 33 Kamrangir Char Branch, Dhaka Gazipur
4 Dhaka East Zone 34 Lalbagh Branch, Dhaka 79 Gazipur Sadar Branch, Gazipur
5 Chattogram North Zone 35 Mohammadpur Krishi Market 80 Jatrabari Branch, Dhaka
Branch, Dhaka 81 Kaliakair Branch, Gazipur.
6 Chattogram South Zone
36 Munshigonj Branch, Munshiganj 82 Kanchpur Branch, Narayanganj
7 Bogura Zone
37 Nawab Ganj Branch, Dhaka 83 Kapasia Branch, Gazipur
8 Khulna Zone
38 Nimtola Branch, Munshiganj 84 Khilgaon Branch, Dhaka
9 Cumilla Zone
39 Pantha Path Branch, Dhaka 85 Konabari Branch, Gazipur
10 Sylhet Zone
40 Sadarghat Branch, Dhaka 86 Madhabdi Branch, Narsingdi
11 Rajshahi Zone
41 Shyampur Branch, Dhaka 87 Mawna Chowrasta Branch,
12 Barishal Zone
42 Sreenagar Branch, Munshiganj Gazipur
13 Mymensingh Zone
43 Tongbari Branch, Munshiganj 88 Monohardi Branch, Narsingdi
14 Noakhali Zone
44 Wiseghat Branch, Dhaka 89 Narayanganj Branch, Narayanganj
15 Rangpur Zone
45 Zinzira Branch, Dhaka 90 Narsingdi Branch, Narsingdi
16 Jashore Zone
Dhaka North Zone 91 Nitaiganj Branch, Narayanganj
Corporate Branches
46 Amin Bazar Branch, Dhaka 92 Palash Branch, Narsingdi
1 Agrabad Branch, Chattogram
47 Ashulia Branch, Dhaka 93 Riapura Branch, Dhaka
2 Foreign Exchange Branch, Dhaka
48 Badda Branch, Dhaka 94 Sonargaon (SME/Krishi) Branch,
3 Gulshan Branch, Dhaka Narayanganj
49 Banani Branch, Dhaka
4 Head Office Complex Branch, 95 Shibpur Branch, Narsingdi.
Dhaka 50 Baridhara Branch, Dhaka
51 Bangla Motor Branch,Dhaka Chattogram North Zone
5 Khatunganj Branch, Chattogram
52 Board Bazar Branch, Gazipur 96 Agrabad Commercial Area Branch,
6 Local Office, Dhaka Chattogram
7 Nawabpur Road Branch, Dhaka 53 Cantonment Branch, Dhaka
97 Bandartila Branch, Chattogram
8 Ramna Branch, Dhaka 54 College Gate Branch, Gazipur
98 Baraiyarhat Branch, Chattogram
Dhaka Central Zone 55 Dhaka EPZ Branch, Dhaka
99 Barodarogarhat (SME/Krishi)
9 Bangshal Branch, Dhaka 56 Haji Camp Branch, Dhaka
Branch, Chattogram
10 Chawk Mugaltuly Branch, Dhaka 57 Hemayetpur Branch, Dhaka
100 CDA Avenue Branch, Chattogram
11 Dhanmondi Branch, Dhaka 58 Kalampur (SME/Krishi) Branch,
101 Chowdhury Hat Branch,
Dhaka
12 Elephant Road Branch, Dhaka Chattogram
59 Manikganj Branch, Manikganj
13 Farmgate Branch, Dhaka 102 Dewanhat Branch, Chattogram
60 Mirpur-1 Branch, Dhaka
14 Gulshan Circle-1 Branch, Dhaka 103 Fatikchhari Branch, Chattogram
61 Moghbazar Branch, Dhaka
15 Kawran Bazar Branch, Dhaka 104 Halishahar Branch, Chattogram
62 Mohakhali Branch, Dhaka
16 Mirpur Branch, Dhaka 105 Hathazari Branch, Chattogram
63 Nikunja Branch, Dhaka
17 Motijheel Branch, Dhaka 106 Jubilee Road Branch, Chattogram
64 Pallabi Branch, Dhaka
18 Mouchak Branch, Dhaka 107 Kadamtoli Branch, Chattogram
65 Rampura Branch, Dhaka
19 New Market Branch, Dhaka 108 Khulshi Branch, Chattogram
66 Savar Branch, Dhaka
20 Mirpur Women Branch, Dhaka 109 Khagrachari Branch, Khagrachari
67 Shibaloy Branch, Manikganj
21 Paltan Branch, Dhaka 110 Mirersharai (SME/Krishi) Branch,
68 Singair Branch, Manikgonj Chattogram
22 Shyamoli Branch, Dhaka
69 Sonargaon Janapath Road Branch, 111 Nazirhat Branch, Chattogram
23 Uttara Branch, Dhaka
Dhaka
24 VIP Road Branch, Dhaka 112 Nazumeah Hat Branch,
70 Tongi Branch, Gazipur Chattogram
Dhaka South Zone
71 Zirani Bazar (SME/Krishi) Branch, 113 O.R. Nizam Road Branch,
25 Agargaon Branch, Dhaka Dhaka Chattogram
26 Ati Bazar Branch, Dhaka Dhaka East Zone 114 Oxygen Moor Branch, Chattogram
27 Bandura (SME/Krishi) Branch, 72 Araihazar Branch, Narayanganj
Dhaka 115 Panchlaish Branch, Chattogram
73 Banasree Branch, Dhaka 116 Pahartali Branch, Chattogram
28 Dholaikhal Branch, Dhaka
74 Basabo Branch, Dhaka 117 Patenga Branch, Chattogram
29 Dohar Branch, Dhaka
75 Bhulta Branch, Narayanganj 118 Rangamati Branch, Rangamati

119 Ranirhat Branch, Chattogram. 168 Nandigram (SME/Krishi) Branch, 213 Chauddagram Branch, Cumilla
120 Raozan Branch, Chattogram Bogura 214 Companiganj Branch, Cumilla
121 Rangunia Branch, Chattogram 169 Naogaon Branch, Naogaon 215 Cumilla Branch, Cumilla
122 Sandwip Branch, Chattogram 170 Palashbari Branch, Gaibandha. 216 Cumilla Cantonment Branch,
123 Sitakunda Branch, Chattogram 171 Panchbibi Branch, Joypurhat Cumilla
124 Station Road Branch, Chattogram 172 Salanga Branch, Sirajganj 217 Cumilla Chawkbazar Branch,
125 Bhujpur Branch, Chattogram. 173 Shahjadpur Branch, Sirajgonj Cumilla
Chattogram South Zone 174 Shantahar (SME/Krishi) Branch, 218 Daudkandi(SME/Krishi) Branch,
Bogura Cumilla
126 Anderkilla Branch, Chattogram
175 Sirajganj Branch, Sirajganj 219 Faridganj Branch, Chandpur
127 Anwara Branch, Chattogram
176 Sonatola Branch, Bogura 220 Gouripur Branch, Cumilla
128 Bahaddarhat Branch, Chattogram
177 Ullapara Branch, Sirajganj 221 Hajiganj Branch, Chandpur
129 Bakalia Branch, Chattogram
178 Dhunot Branch, Bogura. 222 Kosba Branch, Brahmanbaria
130 Bandarban Branch, Bandarban
Khulna Zone 223 Laksham Branch, Cumilla
131 Banshkhali Branch, Chattogram
179 Bagerhat Branch, Bagerhat 224 Matlab Branch, Chandpur
132 Boalkhali Branch, Chattogram
180 Bhanga (SME/ Krishi) Branch, 225 Nabinagar Branch, Brahmanbaria
133 Chaktai Branch, Chattogram
Faridpur 226 Nangalkoat Branch, Cumilla
134 Chandanaish Branch, Chattogram
181 Boalmari Branch, Faridpur 227 Paduar Bazar Bishwa Road
135 Chawk Bazar Branch, Chattogram
182 Boro Bazar Branch, Khulna Branch, Cumilla
136 Chakaria Branch, Cox's Bazar
183 Daulatpur Branch, Khulna 228 Sachar Branch, Chandpur
137 Courtbazar (SME/Krishi) Branch,
184 Dumuria Branch, Khulna 229 Sarail Branch, Brahmanbaria.
Cox's Bazar
185 Fakirhat Branch, Bagerhat Sylhet Zone
138 Cox's Bazar Branch, Cox's Bazar
186 Faridpur Branch, Faridpur 230 Amberkhana Branch, Sylhet
139 Dohazari Branch, Chattogram
187 Fultala Bazar (SME/Krishi) 231 Baralekha Branch, Moulvi Bazar
140 Eidgah Branch, Cox's Bazar
Branch, Khulna 232 Beani Bazar Branch, Sylhet
141 Gunagori Branch, Chattogram
188 Gopalganj Branch, Gopalganj 233 Biswanath Branch, Sylhet
142 Kalurghat Branch, Chattogram
189 Kalaroa Branch, Satkhira 234 Chhatak Branch, Sunamganj
143 Karnafuli Branch, Chattogram
190 Kaliganj Branch, Satkhira 235 Dakshin Surma Branch, Sylhet
144 Keranihat Branch, Chattogram
191 KDA Avenue Branch, Khulna 236 Goalabazar Branch, Sylhet
145 Lama Branch, Bandarban
192 Khulna Branch, Khulna 237 Golapganj Branch, Sylhet
146 Link Road Branch, Cox's Bazar
193 Madhukhali Branch, Faridpur. 238 Habiganj Branch, Habiganj
147 Lohagara Branch, Chattogram
194 Mongla Branch, Bagerhat 239 Jagannathpur Branch, Sunamganj
148 Moheshkhali Branch, Cox's Bazar
195 Morelgonj Branch, Bagerhat 240 Kanaighat Branch, Sylhet
149 Patiya Branch, Chattogram
196 Mukmusudpur Branch, Gopalganj 241 Kulaura Branch, Moulvi Bazar
150 Pekua Branch, Cox's Bazar
197 Paikgacha Branch, Khulna 242 Laldighirpar Branch, Sylhet
151 Ramu Branch, Cox's Bazar
198 Pirojpur Branch, Pirojpur 243 Moulvi Bazar Branch, Moulvi
152 Satkania Branch, Chattogram
199 Sarankhola Branch, Bagerhat Bazar
153 Teknaf Branch, Cox's Bazar
200 Satkhira Branch, Satkhira 244 Nabiganj (SME/ Krishi) Branch,
154 Terribazar Branch, Chattogram Habiganj
201 Shyamnagar Branch, Satkhira
155 Ashkar Dighir Par Branch, 245 Shahporan Branch, Sylhet
Chattogram. 202 Tungipara Branch, Gopalganj
203 Fulbari Gate Branch, Khulna. 246 Shayestaganj (SME/ Krishi)
Bogura Zone Branch,
156 Barogola Branch, Bogura Cumilla Zone
247 Sree Mangal Branch, Moulvi
157 Belkuchi Branch, Sirajganj 204 Akhaura (SME/Krishi) Branch,
Bazar
Brahmanbaria
158 Bogura Branch, Bogura 248 Sunamganj Branch, Sunamganj
205 Ashuganj Branch, Brahmanbaria
159 Dupchanchia Branch, Bogura 249 Sylhet Branch, Sylhet
206 Brahhmanbaria Branch,
160 Gaibandha Branch, Gaibandha 250 Zindabazar Branch, Sylhet
Brahmanbaria
161 Gobindagonj Branch, Gaibandha 251 Chunarughat Branch, Habigonj.
207 Banchharampur Branch,
162 Highway Branch, Bogura Brahmanbaria Rajshahi Zone
163 Joypurhat Branch, Joypurhat 208 Bangodda Bazar Branch, Cumilla 252 Bagha Branch, Rajshahi.
164 Kahalu (SME/Krishi) Branch, 209 Barura Branch, Cumilla 253 Baneswar Branch, Rajshahi
Bogura 254 Bhawaniganj Branch, Rajshahi
210 Burichong (SME/Krishi) Branch,
165 Kalai Branch, Joypurhat Cumilla 255 Bera Branch, Pabna
166 Kalibazar Branch, Gaibandha 211 Chandina Branch, Cumilla 256 Chanchkoir Branch, Natore
167 Mohastangor (SME/Krishi) 212 Chandpur Branch, Chandpur
Branch, Bogura

257 Chapai Nawabganj Branch, Chapai Mymensingh Zone 351 Birampur Branch, Dinajpur
Nawabganj 303 Alenga (SME/Krishi) Branch, 352 Birganj Branch, Dinajpur
258 Chatmohar Branch, Pabna Tangail 353 Debiganj Branch Panchagarh
259 Godagari Branch, Rajshahi 304 Bakshiganj Branch, Jamalpur 354 Dhap Branch, Rangpur
260 Ishwardi Branch, Pabna 305 Bhairab Branch, Kishoreganj 355 Dinajpur Branch, Dinajpur
261 Kashinatpur Branch, Pabna 306 Bhaluka Branch, Mymensingh 356 Fulbari Branch, Dinajpur.
262 Keshorehat (SME/Krishi) Branch, 307 Fulbaria Branch, Mymensingh 357 Jaldhaka Branch, Nilphamari
Rajshahi 308 Jamalpur Branch, Jamalpur 358 Kurigram Branch, Kurigram
263 Manda Branch, Naogaon 309 Kishoreganj Branch, Kishoreganj 359 Lalmonirhat Branch, Lalmonirhat
264 Mohadebpur Branch, Naogaon 310 Kotiadi Branch, Kishoreganj 360 Nilphamari Branch, Nilphamari
265 Natore Branch, Natore 311 Mirzapur Branch, Tangail 361 Panchagarh Branch, Panchagarh
266 Nazipur Branch, Naogaon 312 Modhupur Branch, Tangail 362 Patgram (SME/Krishi) Branch,
267 New Market Branch, Rajshahi 313 Muktagacha (SME/Krishi) Branch, Lalmonirhat
268 Pabna Branch, Pabna Mymensingh 363 Pirgonj Branch, Rangpur
269 Rajshahi Branch, Rajshahi 314 Mymensingh Branch, Mymensingh 364 Rangpur Branch, Rangpur
270 Rohanpur Branch, Chapai 315 Netrokona Branch, Netrokona 365 Ranisankail Branch, Thakurgaon
Nawabganj 316 Nalitabari Branch, Sherpur 366 Saidpur Branch, Nilphamari
271 Santhia Branch, Pabna 317 Phulpur Branch, Mymensingh 367 Setabganj Branch, Dinajpur
272 Sapahar Branch, Naogaon 318 Roumari Branch, Kurigram 368 Sundarganj Branch, Gaibandha
273 Shibganj Branch, Chapai 319 Sakhipur Branch, Tangail. 369 Thakurgaon Branch, Thakurgaon
Nawabganj 320 Sherpur Branch, Sherpur Jashore Zone
274 Singra Branch, Natore 321 Tangail Branch, Tangail 370 Alamdanga Branch,Chuadanga
275 Sujanagar (SME/Krishi) Branch, 322 Tarakandi Branch, Jamalpur 371 Benapole Branch, Jashore
Pabna
323 Trishal Branch, Mymensingh 372 Bheramara Branch, Kushtia
276 Bonpara Branch, Natore.
324 Hossainpur Branch, Kishoreganj 373 Chowgachha Branch, Jashore
Barishal Zone
325 Mohongonj Branch, Netrokona. 374 Chuadanga Branch, Chuadanga
277 Bakerganj Branch, Barishal
326 Islampur Branch, Jamalpur. 375 Dak Bangla (SME/Krishi) Branch,
278 Barguna Branch, Barguna
Noakhali Zone Jhenaidah
279 Barishal Branch, Barishal
327 Bank Road Branch, Noakhali 376 Jashore Branch, Jashore
280 Bhandaria Branch, Pirojpur
328 Bashurhat Branch, Noakhali 377 Jhenaidah Branch, Jhenaidah
281 Bhola Branch, Bhola
329 Chandraganj Branch, Laxmipur 378 Jhikorgachha Branch, Jashore
282 Borhanuddin (SME/Krishi)
330 Chaprashirhat (SME/Krishi) 379 Jibon Nagar (SME/Krishi) Branch,
Branch, Bhola
Branch, Noakhali Chuadanga
283 Charfashion Branch, Bhola
331 Chatkhil Branch, Noakhali 380 Kaliganj Branch, Jhenaidah
284 Chormuguria (SME/Krishi)
332 Chhagalnaiya Branch, Feni 381 Keshabpur Branch, Jashore
Branch, Madaripur
333 Chowmuhani Branch, Noakhali 382 Kotchandpur Branch, Jhenaidah
285 Damodya Branch, Shariatpur
334 College Road Branch, Feni 383 Kumarkhali Branch, Kushtia
286 Hatkhola Chawkbazar Branch,
Barishal 335 Dagonbhuiyan Branch, Feni 384 Kushtia Branch, Kushtia
287 Jhalakathi Branch, Jhalakathi 336 Feni Branch, Feni 385 Langalbandh Branch, Magura
288 Kalapara Branch, Patuakhali 337 Fulgazi Branch, Feni. 386 Lohagara Branch, Narail
289 Kalkini Branch, Madaripur 338 Hajirhat Branch, Laxmipur 387 Magura Branch, Magura
290 Lalmohan Branch, Bhola 339 Laxmipur Branch, Laxmipur 388 Maheshpur Branch, Jhenaidah.
291 Madaripur Branch, Madaripur 340 Maijdee Court Branch, Noakhali 389 Meherpur Branch, Meherpur
292 Matbaria Branch, Pirojpur 341 Mandari Bazar Branch, Laxmipur 390 Narail Branch, Narail
293 Miarhat Branch, Pirojpur 342 Parshuram (SME/ Krishi) Branch, 391 Noapara Branch, Jashore
Feni 392 Pangsha Branch, Rajbari
294 Muladi Branch, Barishal
343 Raipur Branch, Laxmipur 393 Poradah Branch, Kushtia
295 Naria Branch, Shariatpur
344 Ramganj Branch, Laxmipur 394 Rajbari Branch, Rajbari
296 Patuakhali Branch, Patuakhali
345 Senbag Branch, Noakhali
297 Rajapur Branch, Jhalakathi
346 Sonagazi Branch, Feni
298 Shariatpur Branch, Shariatpur
347 Sonaimuri Branch, Noakhali The detail address of the Branch is
299 Takerhat Branch, Madaripur
348 Sonapur Branch, Noakhali available at our website www.islamib-
300 Torki Branch, Barishal
349 Subarnachar Branch, Noakhali ankbd.com
301 Wazirpur Branch, Barishal
Rangpur Zone
302 Shibchar Branch, Madaripur.
350 Bhurungamari Branch, Kurigram

Glossary
AAOIFI Accounting and Auditing Organization CTR Cash Transaction Report IIRC International Integrated Reporting
for Islamic Financial Institutions DAIBB Diplomaed Associate of the Council
AD Authorized Dealer Institute of Bankers, Bangladesh IPO Initial Public Offering
ADB Asian Development Bank DC Data Center IRG Investment Risk Grading
ADC Alternative Delivery Channel DCFCL Departmental Control Function LC Letter of Credit
AGM Annual General Meeting Check List MCR Minimum Capital Requirement
ALCO Asset Liability Committee DOS Department of Offsite Supervision MEIS Micro Enterprise Investment Scheme
ATM Automated Teller Machine DRS Disaster Recovery Site MICR Magnetic Ink Character Recognition
BAB Bangladesh Association of Banks DSE Dhaka Stock Exchange Ltd MIS Management Information System
BACH Bangladesh Automated Clearing House EFT Electronic Fund Transfer MPB Mudaraba Perpetual Bond
BACPS Bangladesh Automated Cheque eIBS Electronic Integrated Banking System NAV Net Asset Value
Processing System EPS Earnings Per Share NOC No Objection Certificate
BAFEDA Bangladesh Foreign Exchange Dealers ETP Effluent Treatment Plants NPI Non-performing Investment
Association EU European Union NPL Non-performing Loan
BAS Bangladesh Accounting Standards EVA Economic Value Added NRD Non Resident Dollar account
BB Bangladesh Bank FCB Foreign Commercial Bank OBU Offshore Banking Unit
BBTA Bangladesh Bank Training Academy FIs Financial Institutions PCB Private Commercial Banks
BCP Business Continuity Plan FY Financial Year POS Point of Sales
BDT Bangladeshi Taka CIBAFI General Council for Islamic PPD Profit Paid on Deposits
BEFTN Bangladesh Electronic Fund Transfer Banks and Financial Institutions PV Present Value
Network GDP Gross Domestic Product RDS Rural Development Scheme
BFIU Bangladesh Financial Intelligence Unit GOB Government of Bangladesh R&D Research and Development
BFRS Bangladesh Financial Reporting GRI Global Reporting Initiative RMG Readymade Garments
Standards HDS Household Durables Scheme ROA Return on Assets
BIBM Bangladesh Institute of HFT Held for Trading ROE Return on Equity
Bank Management HPSM Hire Purchase under Shirkatul Melk ROI Return on Investment
BO Beneficiary Owners HR Human Resources RTGS Real Time Gross Settlement
BRPD Banking Regulation & Policy HTM Held to Maturity RWA Risk Weighted Assets
Department IAS International Accounting Standards SAFA South Asian Federation of
BSA Bangladesh Standards on Auditing IBB Institute of Bankers, Bangladesh Accountants
BSEC Bangladesh Security and Exchange IBBL Islami Bank Bangladesh Limited SEC Securities and Exchange Commission
Commission IBIT Islami Bank Institute of Technology SLR Statutory Liquidity Ratio
CAMLCO Chief Anti Money Laundering IBCF Islamic Banks Consultative Forum SME Small & Medium Enterprise
Compliance Officer IBCA Inter Branch Credit Advice SMS Short Message Service
CAR Capital Adequacy Ratio IBDA Inter Branch Debit Advice SMA Special Mention Account
CDBL Central Depository Bangladesh IBP Inland Bill Purchase SOB State Owned Banks
Limited IBF Islami Bank Foundation SRP Supervisory Review Process
CEO Chief Executive Officer IBTRA Islami Bank Training & Research STR Suspicious Transaction Report
CFO Chief Financial Officer Academy SWIFT Society for Worldwide Inter-Bank
CGG Corporate Governance Guidelines ICAB Institute of Chartered Accountant Financial Tele-communication
CIPPS Centralized Investment Proposal of Bangladesh TA Traveling Allowance
Processing System ICMAB Institute of Cost and Management TOR Terms of Reference
CIB Credit Information Bureau Accountants of Bangladesh VAT Value Added Tax
CNG Compressed Natural Gas IC&CW Internal Control & Compliance Wing WAN Wide Area Network
CPI Consumer Price Index ICB Investment Corporation of WEIS Women Entrepreneur
CRAR Capital Adequacy Assessment Ratio Bangladesh Investment Scheme
CRISL Credit Rating Information and ICT Information and Communication
Services Limited Technology
CRO Chief Risk Officer ICTIC Information and Communication
CRR Cash Reserve Requirement Technology Implementation
CSR Corporate Social Responsibility Committee
CSBIBB Central Shariah Board for IDB Islamic Development Bank
Islamic Banks of Bangladesh IFRS International Financial Reporting
CSE Chattogram Stock Exchange Standards

AxuJoL mqJÄT mJÄuJPhv KuKoPac
Head Office, Islami Bank Tower
PROXY FORM
I/we__________________________________________________________________ being a member(s) of Islami Bank Bangladesh Limited
do hereby appoint Janab_____________________________________________________________ of _________________________
_________________________________________________ as my / our Proxy to attend and vote on behalf of me / us at the 40th Annual General
Meeting of the Company to be held on Thursday, the 22nd June, 2023 at 11.30 A.M. through Digital Platform and at any adjournment thereof.
As witness my/our hand this __________ day of ____________ 2023.
Folio No. : _______ BO ID No.:
Revenue Stamp for

Tk.20.00 (twenty) only
Signature of the Proxy/Attorney with date No. of Share(s) Revenue Stamp Signature of the Member with date
N.B.: This Form of Proxy, duly signed (as recorded with the bank), stamped and completed must be submitted to the Registered Office or Share & Bond Division (63 Dilkusha C/A, 5th
Floor, Dhaka) of the Company at least 48 (Forty Eight) hours before the Meeting i.e. 11.30 A.M. on Tuesday the 20th June, 2023.
AxuJoL mqJÄT mJÄuJPhv KuKoPac

Head Office, Islami Bank Tower
The 40th Annual General Meeting held on Thursday, the 22nd June, 2023
ATTENDANCE SLIP
I do hereby submit the Attendance slip in connection with the 40th Annual General Meeting of Islami Bank Bangladesh Limited held today
Thursday, the 22nd June, 2023 at 11.30 A.M. through Digital Platform.
Folio No. : _______ BO ID No.:
No. of Share(s)
Full Name of the Member / Attorney / Proxy : Signature with date

N.B.: The Member/Attorney/Proxy is requested to handover the Attendance Slip at the entrance of the Meeting Hall.


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ANNUAL REPORT 2022 1

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ANNUAL REPORT 2022 1

Islami Bank Bangladesh Limited

Mobile: (+88) 01711-435638, (+88) 01711-435639

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You who believe, eat of the good things that We have

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GUIDANCE FROM THE

Abu Bakr (R) narrated that the Messenger of Allah (‫)ﷺ‬

Abu Sa'eed narrated that the Prophet (‫ )ﷺ‬said: "The

Abu Hurairah (RA) narrated: Allah's Messenger (‫)ﷺ‬

Abu Huraira traced to the Prophet (‫ )ﷺ‬the statement that

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All Honourable Members/Shareholders,

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Dated: Dhaka (J Q M Habibullah FCS)

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Our goal is to establish and maintain modern banking techniques, to ensure

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To encourage the socio-economic development and ﬁnancial services to the

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Adherence to Islamic Shari’ah

Socially Responsible Banking

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ShariÈah foundation of ethics

Principles of personnel ethics

Rules of ethical conduct

Conduct towards shareholders, managers and fellow employees

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Tax Card GIFA Global South Asian Business

CIBAFI Award Excellence in THE ASIAN

Tax Card ICAB NATIONAL Bangladesh Bank

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Strongest Bank by Bangladesh Bank Bangladesh Bank

Listed among The Banker’s Tax card

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 Not merely Physical Outlook but in Appearance,

 Upholding Our Vision, Philosophy and Values

B. Maximizing Resource Mobilization Building Capacity Building

F. Ensuring Cyber Security 3) “The Strongest Bank by Balance Sheet in Bangladesh

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Appreciations & Gratitude

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