WELCOME TO OUR

PRESENTATION
 OUR TOPIC

Different Modes Of Investment

Of IBBL
OUR GROUP MEMBER
1.Sakib Bin Alam
2.Shafayet Hossain Shaon
From Ahsanullah University of Science &
Technology

3.
From Atish Dipankar University of Science &
Technology

4.
From
 ORIGIN OF THE REPORT

---Internship program is a pre-requisite for acquiring

BBA degree. Before completion of the degree, a
student must undergo the Internship program.

---Every student under the internship program has to

prepare a report based on the project or particular
matching with the intern’s area of specialization and
organization requirement. The report writing consists
of Intern’s analysis, finding and achievements.

---This report titled “Modes of Investment” is

prepared as internship report under the supervision
and guidance of IBTRA.
Objective of the report

Primary objective :

•To know about Islami Bank Bangladesh ltd.

•To understand and analyze the Islamic Banking system of Bangladesh and
its policies & regulations.
•To mature with corporate culture.
•To learn practical knowledge.
•To collect information about Islami Bank Bangladesh ltd.

Secondary objective :

•To identify all the investment mechanisms followed by the Islami Bank Bangladesh limited.
•To identify all the modes of investment followed by Islami Bank Bangladesh Limited prior to
other conventional Banks in Bangladesh.
•To indicate the special schemes under investment modes of Islami Bank Bangladesh
Limited.
•To identify the problems faced by Islami Bank Bangladesh Limited regarding investment.
•To give recommendation to overcome the problems and for further improvement.
•Present a brief description of the investment policy.
 Sources of data & Methodology

Primary source
•Vice president( Branch Manager) & second officer of the
branch.
•Face to face conversation with employees and staffs.
•Practical work experience.
•Sharing practical knowledge of officials.
•Relevant file study provided by the officers
concerned.
•In-depth study of selected cases.

Secondary sources
•Annual Report of IBBL
•Audit Reports
•Website
•Relevant books, Research papers, Newspapers and
Journals.
•Internet and various study selected reports.
Limitation of the report

•Lack of time & sources.

•Maximum data are collected from
secondary sources.
•Be short of analytical power.
•Be deficient of monitor all the activity.
•Have not enough experience in this
issue.
Islami Bank Bangladesh Limited is considered to be the first
interest free bank in Southeast Asia. It was incorporated on 13-03-
1983 as a Public Company with limited liability under the
companies Act 1913. The bank began operations on March 30,
1983, with major share by the foreign entrepreneurs.

Islami Bank Bangladesh Limited is a Joint Venture Public Limited

Company engaged in commercial banking business based on
Islamic Shari'ah with 63.09% foreign shareholding having largest
branch network ( total 286 Branches) among the private sector
Banks in Bangladesh. It was established on the 13th March 1983
as the first Islamic Bank in the South East Asia.
Mission

•To establish Islamic Banking through the introduction of a welfare oriented

banking system.
•ensure equity and justice in the field of all economic activities.
•achieve balanced growth and equitable development in through diversified
investment operations particularly in the priority sectors and less developed areas
of the country.
•To encourage socio-economic upliftment.
•financial services to the loss-income community particularly in the rural areas.

Vision

•try to encourage savings in the form of direct investment.

•to establish and maintain the modern banking techniques.
•to ensure soundness and development of the financial system based on Islamic
principles.
•to become the strong and efficient organization with highly motivated
professional, working for the benefit of people, based upon accountability,
transparency and integrity in order to ensure stability of financial systems.
•also try to encourage investment particularly in projects which are more likely to
lead to higher employment.
Goal of Islami Bank Bangladesh Limited

•To establish ehsan (gracious conduct or

kindness) in economic affairs.
•Establishment of maroof (proper and good acts
institution) in economic life.
•Elimination of Munker (Evil, Wrong or injurious
practice) from evil economic structure.
•To attain maximum profit growth.
•To maximize employment to ensure maximize
use of wealth in the society.
•To achieve universal education & encourage the
cooperation in the society.
 Essential Features of Islamic Bank

Prohibition of interest

Investment based on profit

Investment in Halal business

Halal paths and procedures

Misconceptions about Islami Bank
Bangladesh Ltd

1. Political Influence

2.Islami Bank also provide interest using Islam Tag

3.Islami Bank Bangladesh Limited provide financial support to terrorist

4.Islami Bank appoint their employees from a political party

2.16 Organizational structure of IBBL

Executive President (EP)

Deputy Executive President (DEP)

Executive Vice President ( EVP)

Senior Vice President (SVP)

Vice President (VP)

Assistant Vice President (AVP)

Senior Principal Officer (SPO)

Principal Officer (PO)

Senior Officer (SO)

Officer

Probationary Officer

Assistant Officer Grade - I

Assistant Officer Grade - II

Assistant Officer Grade - III

 Khilgaon Branch

Branch
General Banking Foreign remittance section

Investment section
 Management of Khilgaon

Senior Principal Principal officer Senior officer

Vice President &
officer & Second
Branch Manager
officer

provisional officer Assistant Officer Assistant Officer Assistant Officer

Grade-1 Grade-2 Grade-3

Security Guard Security Guard Messenger Come Messenger Come

Grade-2 Grade-1 Guard-2 Guard-1
 Khilgaon Branch

In-Charge Branch & Zone Address

Branch : Khilgaon 1419/2, Block-A, Khilgaon Taltala,

Md. Enamul Huq Dhaka Central Zone Dhaka-1219
Vice President Phone: (02) 7216464
Mobile: 01714-015532
Fax: (02) 7212761
Online Branch Email:
[email protected]
 Products & Service of Islami Bank Bangladesh Ltd

Islami Bank Bangladesh Limited mobilizes deposits through different types of accounts.
Al-Wadeah Accounts
Mudaraba Accounts
There are some account under Muradaba account
 Al-Wadeah Current Account (AWCA)

 Mudaraba Savings Account (MSA)

 Mudaraba Term Deposit Account (MTDR)

 Mudaraba Special Notice Account (MSNA)

 Mudaraba Hajj Savings Account (MHSA)

 Mudaraba Special Savings (Pension) Account (MSSA)

 Mudaraba Savings Bond (MSB)

 Mudaraba Monthly Profit Deposit Account (MMPDA)

 Mudaraba Muhor Savings Account (MMSA)

 Mudaraba Waqf Cash Deposit Account (MWCDA)

 Mudaraba NRB Savings Bond (MNSB) Account

 Mudaraba Foreign Currency Deposit Account (MFCD)

 Students Mudaraba Savings Account (SMSA)

 Mudaraba Farmers Savings Account (MFSA)

 Investment

The special feature of the Investment Policy of the Bank is to invest on the
basis of profit-loss sharing system in accordance with the tenets and
principles of Islamic Shari'ahFollowing modes are used for investment:
BAI-MODES
Bai-Murabaha
Bai-Istijrar
Bai-Muajjal
Bai Salam
Istisna’a
Bai-As-Sarf
SHARE-MODES
Mudaraba
Musharaka
IJARA-MODES
Hire Purchase Under Shirkatul Melk
Investment Scheme

•Household Durables Scheme (HDS)

•Investment Scheme for Doctors (ISD)
•Transport Investment Scheme (TIS)
•Car Investment Scheme (CIS)
•Small Business Investment Scheme (SBIS)
•Micro Industries Investment Scheme (MIIS)
•Agricultural Implement Investment Scheme (AIIS)
•Real Estate Investment Program (REIP)
•Real Estate Investment (Commercial & Working Capital)
•Agricultural Investment of IBBL
•NRB (Non Resident Bangladeshi) Entrepreneurs Investment
Scheme(NEIS)
Women Entrepreneurs Investment Scheme (WEIS)
Investment Modes of Islami Bank Bangladesh Ltd
The investment modes of IBBL are set by head office of the bank and then followed by
selected
branches. Thus, efforts have been made in this report to reveal the investment modes
of IBBL in order to explore the investment modes of Islami Bank Bangladesh Ltd
khilgaon Branch.
Islami Bank Bangladesh Ltd. operates its investment activities mainly through three (3)
mechanisms:

1. Bai Mechanism 2. Share Mechanism 3. Ijara Mechanism

•Bai- Murabaha a. Mudaraba a. Hire Purchase Under Shirkatul

•Bai- Muajjal b. Musharaka Melk
•Bai- Salam
•Istishna’a
d. Istishna’a
The investment process of Islami Bank Bangladesh given below:

(1)
SELECTION OF THE CLIENT

(2)
APPLICATION STAGE

(3)
APPRAISAL STAGE

(4)
SANCTIONING STAGE

(5)
DOCUMENTATION STAGE

(6)
DISBURSEMENT STAGE

(7)
MONITORING &RECOVERY STAGE
 Sector Wise Investment--------To suit the needs of client of
different strata in the society islami bank sanction & disburse
data in different sector. The mentioning sectors of investment
of IBBL are:

• Industry
• Commerce
• Real Estate
• Agriculture
• Travel
• SME
Others
 KHILGAON BRANCH
KHILGAON, DHAKA
MODE WISE SECTOR OUTSTANDING AS ON 31.12.2013

Mode Sector Outstanding Overdue

BAI MUAJJAL Comment 3,132,0148.00 0.00
BAI MUAJJAL Real Estate 1,641,805.00 0.00
BAI MUAJJAL H.D.S. 209,559.00 0.00
BAI MUAJJAL S.H.D.S. 497,036.00 0.00
Mode Sub-Total 5,480,448.00 0.00
HPSM Industrial 11,360,302.00 0.00
HPSM Real Estate 209,683,458.71 0.00
HPSM Transport 11,819,079.32 0.00
HPSM S.H.B.I.S. 31,334,407.59 0.00
HPSM PalliGrihaNirmanPrakalpa 1,000,350.00 0.00
HPSM Housing Investment Program (HIP) 70,993,918.00 0.00
Mode Sub-Total 336,191,515.62 0.00
BAI SALAM Industrial 1,677,000.00 0.00
Mode Sub-Total 1,677,000.00 0.00
QTDR Others 32,960,860.00 0.00
Mode Sub-Total 32,960,860.00 0.00
MURABAHA TR Industrial 3,695,600.00 0.00
MURABAHA TR Commercial 147,047,322.00 138,381.00
MURABAHA TR Women Entrepreneur’s Investment 243,649.00 41,349.00
Scheme (WEIS)
Mode Sub-Total 150,986,571.00 179,730.00
QBF Others 25,990.00 0.00
Mode Sub-Total 25,990.00 0.00
QPF Others 1,202,291.00 0.00
QMSS Others 7,307,920.00 0.00
Mode Sub-Total 7,307,920.00 0.00
BAI MUAJJAL FCBILLS Industrial 352,677.00 352,677.00
Mode Sub-Total 352,677.00 352,677.00
MDB Industrial 765,265.00 0.00
Mode Sub-Total 765,265.00 0.00
BAI MUAZZAL RDS 16,193,367.00 0.00
Mode Sub-Total 16,193,367.00 0.00
GRAND TOTAL 553,143,904.62 532,407.00
 KHILGAON BRANCH
KHILGAON, DHAKA
SUMMARY INVESTMENT POSITION AS ON 31.12.2013
Sl no Mode Sector Total Outstanding Overdue Outstanding Classified Investment Rescheduling Outstanding Installment Remarks
investment [Unclassified] Outstandin
Total Princip No of Total Principal No of A/c Total Principal No of Total Principal No of g
al A/c A/c A/C
1 BAI MUAJJAL S.H.D.S. 0.50 0.40 16 0.00 0.00 0 0.00 0.00 0
2 BAI MUAJJAL Commercial 3.13 2.46 3 0.00 0.00 0 0.00 0.00 0
3 BAI MUAJJAL H.D.S. 0.21 0.16 2 0.00 0.00 0 0.00 0.00 0
4 BAI MUAJJAL Real Estate 1.64 1.39 4 0.00 0.00 0 0.00 0.00 0
Mode Total 5.48 4.42 25 0.00 0.00 0 0.00 0.00 0
5 HSPM Industrial 11.36 10.72 3 0.00 0.00 0 0.00 0.00 0
6 HSPM Housing 70.99 69.61 47 0.00 0.00 0 0.00 0.00 0
Investment
7 HSPM PalliGrihaNir 1.00 1.00 1 0.00 0.00 0 0.00 0.00 0
man
8 HSPM S.H.B.I.S 31.33 26.51 23 0.00 0.00 0 0.00 0.00 0
9 HSPM Transport 11.82 11.36 6 0.00 0.00 0 0.00 0.00 0
1 HSPM Real Estate 209.68 157.57 142 0.00 0.00 0 0.00 0.00 0
Mode Total 336.19 276.77 222 0.00 0.00 0 0.00 0.00 0
1 BAI SALAM Industrial 1.68 1.68 2 0.00 0.00 0 0.00 0.00 0
Mode Total 1.68 1.68 2 0.00 0.00 0 0.00 0.00 0
1 QTDR Others 32.96 32.92 153 0.00 0.00 0 0.00 0.00 0
Mode Total 32.96 32.92 153 0.00 0.00 0 0.00 0.00 0
1 MURABAHA Women 0.24 0.21 9 0.02 0.00 1 0.02 0.02 1
TR Entrepreneur
1 MURABAHA Industrial 3.70 3.16 7 0.00 0.00 0 0.00 0
TR
1 MURABAHA Commercial 147.05 124.84 586 0.38 0.32 3 0.00 0.00 0
TR
Mode Total 150.99 128.21 602 0.39 0.32 4 0.02 0.02 1
1 QBF Others 0.03 0.03 10 0.00 0.00 0 0.00 0.00 0
Mode Total 0.03 0.03 10 0.00 0.00 0 0.00 0.00 0
1 QPF Others 1.20 1.20 25 0.00 0.00 0 0.00 0.00 0
Mode Total 1.20 1.20 25 0.00 0.00 0 0.00 0.00 0
1 QMSS Others 7.31 7.30 87 0.00 0.00 0 0.00 0.00 0
Mode Total 7.31 7.30 87 0.00 0.00 0 0.00 0.00 0
1 BAI MUAJJAL Industrials 0.35 0.21 1 0.35 0.21 1 0.00 0.00 0
FCBILLS
Mode Total 0.35 0.21 1 0.35 0.21 1 0.00 0.00 0
2 MDB Industrial 0.77 0.76 5 0.00 0.00 0 0.00 0.00 0
Mode Total 0.77 0.76 5 0.00 0.00 0 0.00 0.00 0

Grand Total 536.95 453.50 1132 0.74 0.53 5 0.02 0.02 1

Findings

Islamic Banking is a new phenomenon in our country during last two decades. So majority of our people
have no proper knowledge about the activities of Islamic Banking as well as its investment mechanism
hamper large scope of investment of IBBL.

Most of the people in our country have a bad impression of IBBL’s operations regarding indirect
generation of interest which meaning no difference between investment of IBBL loan / Credit / advance
of conventional banks for this reason, they are not too much interested to make investment with IBBL.

Because of improper and insufficient application of Islamic Banking rule in our country the investment
operations of IBBL can't run smoothly.

IBBL that is committed to avoid interest can't invest the permissible part of its statutory liquidity
Reserve and short Term liquidity surplus in those securities. This Bank can't invest in all economic
sectors that are prohibited by the law of Islam.

Profitable investment portfolio of IBBL requires clear investment knowledge according to Islamic
Shariah. But sometimes IBBL can't invest its assets in proper portfolio due to insufficient and unskilled
manpower in these regards .As a result, there is a large amount of money being idle and thus potential
profit is not increasing.

This Bank revalues its investment operations within limited number of investment modes and does not
initiate investment modes according to changing [diverse needs of people Sometimes investment
operations of IBBL are hampered due to increase, dishonest, indiscreet, hypocritical nature of people.

IBBL has no strong promotional activities to increase motivate its present and potential investment
client.
 Major findings
•Islami Bank Bangladesh Ltd handle more than 10% in export & import business.
•Islami Bank Bangladesh Ltd have many investment policy which name is not familiar to the
customer.
•IBBL does not grant investment portfolio for new entrepreneurs new businessmen new
companies etc., which ultimately create "Class Banking".
•In rural areas for low income community, this Bank grants investment an group not individual
.as a result, the mission, using invested money in income generating activities so the poor needy
population can become self reliant - is failed. Moreover, it enhances group dependence.
•In some sectors like housing, real estate, project (industry) etc. this Bank disburses total
invested money in times according to Banks pre-determined proportion.
•Investment mode Bai Murabaha Decrease from past year now.
•Bai Muajjal mode increase from past year. the inceasing rate is satisfactory.
•Bai Salam mode also decrease from past year.
•Bai us sarf the percentage is also decrease.
•Musharaka(under HPSM) the percentage is average on this part.
•Mudaraba(under HPSM) the percentage is also average.
•Qurad Hasana in this sector the percentage is also average.
•Securities the most attractive & increasing one. percentage is always increasing.
•Islami Bank Bangladesh are not able to provide their investment in all place. many profitable
field they get but they are not interested to invest because which are prohibited in islam islami
bank restrict to boycott it.
•Islami Bank Bangladesh ltd all investment product is still unknown to their many customer.
 Finings about investment mode

•Customer don’t understand the difference between Conventional

investment & Islami Bank Bangladesh Ltd investment policy.

•Over finance & under finance of the investment some time some
customer want over finance but its not possible as well as some
investment ultimately go under finance.

•Dealings problem, sometime some people who want to misuse

the investment money they create more hassle.

•Variation in Business can be create misconception about

investment.
 Recommendation for Investment Sector

•Qurad Hasana, Bai Muajjal & Securities these three mode are
proftable for islami Bank Bangladesh Ltd. they have give more
concentration on this three for maintain current profit & future
market leader.

•Islami Bank Bangladesh Ltd all employees dont know their all
mechanism of their investment policy for that reason the
employees are unable to describe all ins & outs of their policy.
so the employees need more training on this sector.

•Development of marketing strategy on this sector.

•Find out exact reason of why investment is slowly ahead. then

long term solution need on that factor.
•All investment policy should be more flexible & attractive.
•All investment plan have divide into many segment for customer basis.
•Islami Bank Bangladesh Ltd should frequently monitor the changes in the
existing investment areas and should enter into new investment areas where
opportunities of future growth exist.
•Arrangements of monthly or quarterly workshops for the clients selected by
the branches in order to promote investment clients of desired level.
•To gain success in the programs like “Poverty Alleviation” and “Self Reliant”
especially in rural areas, this bank should provide investment facilities not
only on the basis of individual factors (5Cs) but also on the basis of some
economic factors like general income level, per capita income; etc to farther
strengthen the base of such investments.
Thank You