Types of Accounts in Islami Bank Bangladesh ltd

Types of Accounts in IBBL

A bank is essentially an intermediary of short-term investment/funds. It can carry out extensive lending/investment operations only when it can effectively mobilize the savings of the community. A good banker is one who effectively mobilizes the savings of the community as well as makes such use of savings by making it available to productive and priority sectors of the economy thereby fostering the growth and development of the nations’ economy.

Accounts are opened under the following two modes:

1. Al-Wadeeah ( Current Account)

2. Al-Mudaraba (Deposit Account)

1. Al-Wadeeah (Current Account): The word ‘Al-Wadeeah’ has been derived from the Arabic word ‘Wada’yn which means to keep/to deposit/to give up/Amanat. As per Shariah , Amanat means to keep something (goods/money/others) to any reliable person/institution for safe and secured preservation of the same keeping its ownership unchanged and which will be returned to the owner of the fund on demand as it is/in original shape. In case of Amanat Bank/any other institution cannot use, invest and amalgamate the funds without the prior permission of the owner of the Amanat.

• The depositor can deposit any amount in this account
• The depositor can withdraw any amount by cheque
• No profit is allowed in this account
• The depositor shall also not bear any loss
• Cheques, bills etc collected in this account against commission
• Govt. excise and incidental charge realize from this a/c as per rule.

2. Al-Mudaraba (Deposit Account): The word Mudaraba derived from the Arabic

word ‘Darb/Darabun’. Literally it means movement to earn profit (munafa). It is a form of partnership where one of the parties called the ‘Shahib-al-mal’ provides a specified amount of capital and acts like a sleeping or dormant partner, while the other party called the Mudarib (entrepreneur), provides the entrepreneurship and management for carrying on any venture, trade, industry or service with the objective of earning profit. The Mudarib is required to work with honesty and sincerity and to exert the maximum possible care and precaution in the exercise of the functions.

 Mudaraba Deposit Products

• Short Notice Account
• Savings Account
• Term Deposit Account
• Savings Bond
• Special Savings (Pension)
• Monthly Profit Deposit
• Muhor Savings
• Waqf Cash
• Hajj Savings
• Foreign Currency Deposit

Different Types of Account Holders

Anyone can open an account with the banker if he is not incapable of entering into a valid contract and the banker is satisfied of his bonafide and is willing to enter into the business relations with him. There are certain types of accounts in regard to which the banker should take note of the relative laws and exercise pre-cautions in order to safeguard its interest. Some types are:

• A/c opened by minors
• Joint (two or more persons)
• Firms
• Co-operative societies
• Government
• Public bodies
• Agents
• Executors
• Administrators
• Trustees
• Liquidators
• Receivers
• Non-Residen

Account opening Procedure

This section opens account. It receives account opening application from the interested applicants, examines and scrutinizes the applications and then selects final customers. Selection of customers is very much important as the success and failure of the bank is largely dependent on the valued customers. If the customer is found to be fraudulent or create some sort of forgery, it will ultimately destroy the goodwill of the company.

The following formalities must be maintained by the customer for opening of differenttypes of account.

Individual

i. Genuine & acceptable introduction

ii. Attested photograph of the account operator’s/A/c holder’s

iii. Certificate from the Chairman/ Commissioner/ Gazetted Officers or any

responsible person

iv. Verification of introducer’s signature

v. Admittance of the signature(s) of opener/ operator’s A/c

vi. Transaction profile

vii. Obtain KYC

viii. Declaration/Undertaking

ix. Letter of Thanks

a)      It must be sent to the A/c holder and introducer

b)      Office copy to be affixed with the AOF

c)      It will have to be dispatched under registered courier

d)     Courier /Postal receipt must be affixed to the AOF

e)      This receipt must contain the A/c number against which the letter has been sent

f)        After receiving back of the acknowledgement, it must be affixed with concerned AOF for easy location in case of need

g)      If the letter of thanks is returned back, without delivery for nonavailability of address or person, it must be marked on this letter and to be informed to the computer department.

Joint Account

i. All item for individual account holder as stated above

ii. Two or more persons can open an account

iii. Authorized person can operate the account

iv. Authority is automatically revoked by death, insanity or bankruptcy

v. Stoppage of payment by any one of the account holders

vi. Special instruction regarding operation of the A/c in any of the

following forms:

(a) By any of the Joint account holder singly

(b) By either or survivor singly

 (c) By either singly

(d) By any two or more joint account holding jointly

(e) By all the survivors jointly

vii. Accounts mandate-regarding drawing, survivorship, power to overdraw and other matter, i.e. for withdrawal of goods kept for safe custody, separate mandate from surviving persons, closing of debit a/c, stopping operation of a/c after instantly of any person, obtain receipt made by survivors and representatives of deceased persons.

viii. Role of survivorship incase of joint-account by husband and wife:

If the account is opened for convenience of husband, then the balance cannot be claimed by the window but to be sent to the estate of the deceased person. But, if the account is opened for the provision for wife, then the widow can claim the balance in full.

Sole Proprietorship

In case of opening an account by a sole-proprietor of a firm, he/she should sign the Account opening form and furnish his specimen signature showing his representative character.

i. All items for individual account holder as stated above.

ii. Valid trade license or attested photocopy thereof issued by the competent authority

iii. Membership certificate from local business association/Chamber of Commerce

Partnership Firm

A banker should not open an account in the name of a partnership unless one or more of the partners apply to him to do so. Except where the partner, making an application for the opening of an account in the firm’s name, is deprived of the power, which fact is known to the banker, there can be no legal objection to a banker opening an account in the name of the firm at request. Failure, however, to make proper enquiries by referring to the partnership agreement or any other record in writing which maybe available before opening of account on behalf of a firm in a partner’s name may lead a banker in trouble.

i. All items for individual account holder as stated above.

ii. Valid trade license or attested photocopy thereof issued by the competent authority

iii. Two or more person can form a partnership firm by partnership deed.

iv. Clear mandate for operating the a/c from the partners regarding name of the persons to draw cheques and borrow money, to overdraw, to mortgage or to sell properties owned by the firm.

v. In case of insolvency of the firm: Operation should be stopped after receiving notice of insolvency of the firm.

vi. Insolvency of the partner: If the balance is in debit, the a/c must be closed and the debt should be proved to the receiver. If the a/c is in credit the other partners may continue the account. Any cheque previously drawn by the partners maybe paid on the confirmation of the partners.

vii. may be allowed to continue the same but the bank should take fresh mandate from other partner but if the account is in debit then themAccount must be closed to determine the liability of the deceased’s estate.

Private Limited Company

A company registered under the Companies Act, 1913 has a legal entity apart from its shareholder. Private Company means a company which by its articles:

_ Restricts the right to transfer the shares if any;

_ Limits the number of its members 2 to 50

_ Prohibits any invitation to the public to subscribe for the shares, if any or debentures of the company.

When a current account is to be opened for a private limited company the banker will have to obtain the following requirements:

i. All terms for individual account holder as stated above

ii. Copy of memorandum and articles of association duly certified by the Secretary/Director of the company

iii. Certificate of incorporation

iv. Certified copy of resolution of the board of Directors regarding opening of a/c, the execution of papers and conduct of the account.

v. List of Directors under the signature of the Chairman

vi. Copies of latest financial statement/ Transaction profile.

Public Limited Company

Any seven or more persons associated for any lawful purpose, any subscribing their names to a memorandum of association and otherwise complying with the requirements of the Act (13A) in respect of registration, from an incorporated company. When an account is to be opened in the name of a Public limited Company

the following formalities are to be observed:

1.                                 i.            All terms for individual account holder as stated above
2.                               ii.            Certified copies of memorandum and article of association are to be submitted

1.                             iii.             Certificate of incorporation
2.                             iv.             Certified copy of commencement of business for inspection and return

            in case of a newly floated company

  v.       List of Directors under the signature of the Chairman to be furnished

  vi.      Certified copy of a resolution of the Board or Directors regarding opening of the bank a/c execution of the papers and conduct of the account to be furnished.

Trust Account:

A trustee is a person entrusted with the work of the management of a property under a trust created by the owner thereof for the benefit of another or of another and the owner section 3 of the Trust Act 1882 defines “ trust” & a trustee as, “ A trust is an obligation annexed to the ownership of property and arising out of confidence reposed in and accepted by the owner, or declared and accepted by the owner or declared and accepted by him, for the benefit or another or of another and the owner, the persons who reposes or declares the confidence is called the trustee.”

i. All terms for individual account holder as stated above.

ii. Trustee is a person entrusted with the work of a management of a

    property under a trust deed.

iii. Discharges his duties as per trust deed

iv. Attested photo is required

Mudaraba Savings A/c (MSA A/c)

i. Nationality certificate from Ward Commissioner/ UP Chairman or

Passport (photocopy) of every signatories of the A/c

ii. KYC form for individual

iii. Introduction of any current account/ Savings account holder

iv. Two copies attested photographs of a/c operators

Mudaraba Special Savings (Pension) MSS A/c

i. KYC Form for individual

ii. Introduction of any current account/ Savings account holder.

iii. Two copies attested photographs of a/c operators.

Closing of an Account

It could be closed either by a banker or by the customer itself.

Banker: If the customer does not have transaction with the bank for more than a year it may categorized as irregular. And if the customer does not have transaction for 10 years, the customer will be sent a letter.

Customer: If the customer intentionally wants to close the account he/she has to write an application forwarding the Manager with reasons behind the closure of the account.

Types of Deposit & Their Corresponding Provisional Profit

Particular of Deposit                                                         Provisional Profit

1. Mudaraba Haj Savings

From 11 to 25 years                                                                                     10.88%

From 1 to10 years                                                                            10.47%

1.  Mudaraba Waqf Cash Deposit                                                      10.88%

1. Mudaraba Special Savings (Pension)

For 10 years                                                                                      10.47%

For 5 years                                                                                        10.10%

4. Mudaraba Muhur Savings A/c

For 10 years                                                                                      10.47%

For 5 years                                                                                        10.10%

5. Mudaraba Saving Bond

For 8 years                                                                                        10.25%

For 5 years                                                                                        10.10%

6. Mudaraba Monthly Profit Deposit Scheme                                         10.20%

7. Mudaraba Term Deposit

36 months                                                                                          10.00%

24 months                                                                                          9.52%

12 months                                                                                          9.37%

06 months                                                                                          7.41%

03 months                                                                                          7.09%

8. Mudaraba Savings Account                                                       6.35%

Card Section

Automated Teller Machine (ATM), interalia, has unveiled the horizon of Electronic Banking of 21st Century. Through ATM, customers can avail non-stop online teller service without going to the specific branch of the member bank. They can withdraw or deposit cash or cheque as well as pay utility bills like BTTB, Grameen, AKTEL, City Cell Phone, DESA, WASA, TITAS etc. with the help of this modern computer controlled machine. The service is now offered by ETN and eleven member banks including Islami Bank Bangladesh Limited.

Facilities

ATM Card holders can withdraw cash from ATM at any time.

Customers can make transactions from any of the machines with logo ‘E-cash’ installed at different places in the city.

In course of time utility bills like WASA, TITAS and DESA etc can be paid through ATM.

 Now BTTB, Grameen, AKTEL, City Cell Phone bill can be paid through ATM.

Now IBBL E-cash cardholders can be paid their monthly installment of Mudaraba Hajj Savings, MSS (Pension), Mudaraba Muhor Savings and HDS schemes of IBBL through ATM .

The machines are located in convenient places where customers usually deal with money matters. So they can easily avoid the risk of cash carrying by using ATM Card.

 Customers may know their present balance at any time from the machine.

In course of time POS (Point of Sale) can be used.

Getting an ATM Card from IBBL 

A customer having a deposit account with the designated branch of Islami Bank Bangladesh Limited can get an ATM card.

Interested customer would collect ATM Account Opening Form from the concerned branch and submit it along with the Card Fee of Tk.500/= (Taka five hundred) only.

After 7 (seven) days from the date of application, the customer would collect the PIN and Card separately from the designated Officials of the concerned branch and then after 48 (forty-eight) hours, customer can use his Card at any ATM with logo ‘E-cash’.

Customers can withdraw any amount multiplied by Tk.1000/- per instance subject to fulfillment of the above conditions i.e. Tk.1000/=(Taka One thousand One thousand), Tk.2000/=(Taka two thousand), Tk.3000/=(Taka three thousand) and maximum Tk.5000/=(Taka five thousand) per instance and maximum withdrawal limit Tk.20,000/- per day.

Procedure for cash withdrawal ATM

Go to any of the ATMs located anywhere within Dhaka / Sylhet / Chittagong City.

Insert your card into the ATM and type PIN –press ENTER.

Select the ‘Cash Withdrawal’ option by pressing > key

Press the > key against your required amount

Collect the money along with receipt

If you want another transaction, press YES or press No to end transaction.

Cash Section

A banker’s transactions are mainly of three types. They include:

• Cash
• Transfer &
• Clearing

The cash section of any bank plays very significant role in general banking department because, it deals with most liquid assets. Basically cash department is the most vital and sensitive department of the branch which deals with all kinds of transaction in cash. All cash receipts and payments are made through this department. The IBBL (ge Branch) is equipped with electronic machinery with fully computerized system which delivers quick service to its valued customers. This section receives cash from depositors and pay cash against cheques, draft, Pay order (PO), etc over the counter. This section accepts cheques from the depositors for payment in cash. The drawer who wants to receive money against cheque comes to the payment counter and presents the cheque to the officer. He verifies the following information:

I. Date of the cheque

II. Signature of the account holder

III. Material alteration

IV. Whether the cheque is crossed or not

V. Whether the cheque is endorsed or not

VI. Whether the amount in figure and in word corresponds with each One

Then the officer checks the cheque from the computer for further verification. Here is the following information that is checked.

I. Whether there is sufficient balance or not

II. Whether there is stop payment instruction or not

III. Whether there is any legal obstruction or not

The cash section deals with all type of negotiable instruments. It also includes the Vault which is used as the store of the cash instruments. The vault is insured up to a certain amount, which is called the vault limit; the excess cash is then transferred to Bangladesh Bank. The IBBL, Gulshan Branch Vault limit is 1.5 crore. When the excess cash is transferred, the cash officer issues IBDA. The vault counter is around 35 lacs.

Any client who wants to deposit money will fill up the deposit slip and give the form along with the money to the cash officer over the counter. The cash officer counts the cash and compares with the figure written in the deposit slip. He then puts his signature on the slip along with the ‘cash received’ seal and records in the cash receive register and also in the computer against the account holder.

Bills & Clearing Section

A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand. [Section-6, Negotiable Instrument Act, 1881]

A cheque may be an open cheque (which can be presented for payment by the holder) or a crossed cheque (which can be paid only through a collecting banker.)

The picture below (Fig.1) shows a typical cheque issued by banks.

Figure 1

Cheques of its customers are received for collection from other banks. In case of receiving cheques, following points should be checked very carefully:

• The cheques should not carry a date older than the receiving date for
• more than 6 months. In that case it will be a stale cheque and it will not
• be allowed for collection.
• The amount in figure and words in both sides of the pay-in-slip should
• be same.
• The name mentioned in the cheque should be same in both side of the
• pay-in-slip and it should be the same with the name mentioned in the
• cheque
• The cheque must be crossed

The place where banks meet and settle their dues is the clearing house. The clearing house of the IBBL, Gulshan Branch, 42 Motijheel is the local office.

Types of cheque

Inward clearing cheques: Inward cheques are those ones drawn on the respective branch which have been presented on other banks and will be cleared/honored through the clearing house. For example, the cheque drawn on IBBL, Head Office.

Outward Cheques: These cheques are received on the counter from other banks.

There are 3 types:

1. Drawn on another branch of IBBL. These are called Outward Bills for Collection (OBC).

1. Drawn on another bank, which is situated in the clearing house area. This cheques are called clearing cheque.

1. Drawn on another bank, which is situated outside the clearing area. This cheques are also called as OBC.

In the first case, these cheques are directly sent to the respective branch and requests them to send IBCA (Inter Bank Credit Advice) by which a branch credits the account of another branch. No clearing house formalities are necessary here. When IBCA comes, then customer’s accounts are credited of the amount for the cheque. In the second case, the cheques are sent to the clearing house. When the drawee bank honors the cheque then the account of the depositor against the cheque is credited. In the third case, two procedures exist. First way, if the bank exists within the clearing house area of the drawer bank, then we send the cheque to that branch of our bank and that branch collects the proceeds through clearing house formalities and sends an IBCA to us. In the second case if there is no branch of our bank, then we directly send the cheque to the drawee bank and request them to send the cheque to the proceeds by TT, DD or by other means.

Outward Bills for Collection (OBC)

OBC are those cheques drawn on other banks which are not within the same clearing house. An officer gives OBC seal on this type of cheques and later sends a letter to the manager of the branch of the same bank located in the branch on which cheque has been drawn. After collection of that bill, branch advice the concerned branch in which cheque has been presented to credit the customer account through IBCA. In absence of the branch, officer sends a letter to the manager of the bank on which the cheque is drawn. That bank will send pay order in the name of the branch. This isthe procedure of  OBC mechanism.

Inward Bills for Collection (IBC)

All clearing cheques are not received on the counter. Some cheques are received from other source for collection. These cheques are received from other branch of IBBL. These cheques are settled by sending IBCA.

Remittance

Remittance means transmission/transfer of money from one place to another. Local remittance represents remittance that takes place within the territory of a country. Banks have a wide network of branches all over the country and offer various types of remittance facilities to the public/customer/client etc. Virtually there are three types of remittances as under:

• DD- Demand Draft
• TT – Telegraphic Transfer
• PO – Payment Order

Demand Draft

According to Section85 (A) of the negotiable instruments Act, a demand draft is “an order to pay money drawn by one office of the bank upon other office of the same bank for a sum of money payable to order on demand.”

The followings are essential features of a demand draft issued by the bank:

1. It is a negotiable instrument

2. It is drawn by one office of a bank upon another office of the same bank

3. It is payable on demand.

4. Its payment is to be made to the person whose name is mentioned in the instrument or according to order. In other words, it can not be made payable to the bearer.

Issuance of DD

1. A prescribed Application Form bearing No (F20). The following columns

should be filled in properly.

(a) Name & address of the applicant

(b) Telephone No

(c) Date

(d) Signature of the applicant

(e) Name of the payee

(f) Drawee branch

(g) Amount in words and figure

2. Commission to be realized/charged as per Head Office circular, at present

@0.1 % but min TK.10/-

3. Total amount should be deposited by the party in cash or cheque as per arrangement.

4. Printed DD block/leaf to be filled in by a bank official as per request of the purchase i.e.

(a) Name of the issuing branch

 (b) Date

(c) A/c payee rubber stamp

(d) Payee’s name

(e) Amount in words and figure

(f) Drawee branch

5. DD should be signed by two authorized officials

6. Test Number should be given for DD of TK. 25000/- and above

7. Amount should be written by a cheque written in red ink.

8. Particulars of DD should be entered in DD issue registered B-44 under supervision of a authorized official.

9. Telegram/Telex should be sent for amount exceeding Tk.1.00 lac

Telex/Telegram charge should be realized from the customers.

10. If the DD issued for cash payment A/c payee rubber stamp should be cancelled and a letter requesting the drawee branch to pay the DD in cash should be issued under sealed cover and signature of the payee should be attested.

11. DD Advice should be sent on the same day.

Accounting entries for issuance of DD

Debit…………..Cash/party’s A/c

Credit………….IBGA

Credit………….Commission

Payment of Drafts

1. When the draft is presented to the drawee branch for payment, the particulars

of the draft are checked with the advice and signature(s) therein verified.

2. Payment of the DD has not been stopped is to be ensured

3. Verification of Test no. is to be done.

4. In case the advice is not received when the draft is presented, the bank will pay the draft, after satisfying itself that the instrument is in order. However, on payment of a draft in the absence of the relative advice the drawee branch should inform the issuing branch and obtain confirmation about the payment.

5. The drawee branch should ensure that the payment of the instrument is made in due course.

6. As the demand drat is payable to order it is duty of the paying branch to obtain identification of the payee if payment is desired over the counter.

7. If the DD is presented through a bank, the endorsement appearing on the instrument should be prima-facie in order of certified by the collecting banker.

8. Though there is no time limit for presentation, the paying bank should put an enquiry if a draft is presented after a reasonable period say 6 months. Such draft may be paid if the collecting banker certifies that amount has been credited to the payee’s A/c in absence of such a certificate, it would be advisable to return the draft for revalidation before payment.

Telegraphic Transfer (TT)

Telegraphic Transfer is by far the quickest method of transferring funds form one place to another. Some times, the remitter of the funds requires the money to be available to the payee immediately. In that case the banker is requested by the remitter to remit the funds telegraphically. It is an instruction conveyed by telegraph/telex/telephone to the drawee branch for paying certain amount of money to a specified person.

Accounting entries for issuance of TT

Debit…………..Cash/Remitter’s A/c

Credit………….IBGA

Credit………….Commission

Credit………….Telex/Telephone Charges A/c

Accounting entries for payment of TT

Debit …………. IBGA A/c

Credit…………. TT Payable A/c

Debit………….. TT Payable A/c

Credit…………. Client’s A/c

Payment Order

Payment order is meant for making payment of the banker’s own or of the customers dues locally and not for effecting any remittance to an out station. In a sense, the payment order is used for making a remittance to the local creditors.

Issuance & Payment of PO

1. F-19 form should be filled properly

2. Total amount should be deposited through cheque/cash.

3. Commission to be realized as per bank’s circular

4. Printed payment order leaf should be filled in as per F-19 and signed by two

authorized officers.

5. Entry should be given in B-22 register under supervision of authorized

official

6. The instrument should be handed over to the purchaser

7. PO are required to be discharged by the beneficiary where applicable on revenue stamp of appropriate value against in cash or through account.

Remarks: No Test is required for PO

Accounting entries for issuance of PO

Dr………. Cash/ Party’s A/c

Cr………. PO A/c

Cr………. Commission A/c

Accounting entries for payment of PO

Dr………. PO A/c

Cr………. Cash/Party’s A/c

Other service

Locker service:

Secured Locker Service is provided in some branches of the Bank. Customers may avail this service and secure their valuables.

Secured Locker Service is available in the following branches:

 Impact on Economic Development of Bangladesh

Bangladesh is a country suffering from immense social, political, economic and environmental issues and these issues need to be addressed for the overall development of this country.  However, the economic development is one of the prime factors, which can resolve many of its current problems.  The growth of business sectors and open market economy has created a great opportunity for Bangladesh for its development.  The contribution of the banking sector is playing significant role in the development of this country.  However, the emergence of Islamic banking in Bangladesh has added a new height in the banking sector.  The Impact of IBBL seems to be magnificently surpassed among all the Banks in Bangladesh during last one decade.

Economic Development refers to changes that affect a local economy’s capacity to create wealth for local residents.  Economic development for Bangladesh can be identified through number of indicators, including GDP growth, poverty issues, employment, healthcare, environment, education, trade and commerce etc.  This study clearly identifies that during last 28 years, IBBL has contributed in improving Bangladesh economy through making positive changes to all its economic indicators, Which is given below-

Employment Creation:

IBBL has significantly contributed it the employment generation in Bangladesh. This bank has employed over 10,000 people directly and a few million indirectly through financing in business including import-export, industrialization, SME financing and Rural development projects.  So, it can be apprehended that a few million families are directly and indirectly benefited from IBBL and they are also contributing in the economy as a part of the whole economic system of Bangladesh.

Earning Foreign Remittance:

Remittances by migrant workers’ earning sent back from the country of employment to the country of origin, play a vital role in the economies of many labor sending countries.  Also remittance help in macroeconomic development process in the home country as the remittance provide significant sources of foreign currency, increase national income, finance imports and contribute to improve the balance of payment situation.  Demand for migrant workers’ remittances to Bangladesh has now increased tremendously. FY 2010-11, remittance inflow to Bangladesh was 82,992 crore taka (US $11.53 billion). Because of clients’ confidents on the performance, remittance of the IBBL’s grew at 10% to 21,463 crore (US $2.98 billion) with 28% market share and helping Bangladesh economy to become healthier.

International Trade (Import/Export):
IBBL plays significant role in the Bangladesh’s international trading business.  IBBL is helping the economy by providing assistance in importing raw materials on one hand.  On the other hand helping the export business and earning foreign currency for Bangladesh.

Import: During the year 2010 bank opened 46,736 import Letters of Credit for Tk.24,628 crore against 38,717 Letters of Credit for Tk. 16,123 crore in 2009 showing 53% growth in amount. Major items of import consist of raw cotton, yarn, fabrics, capital machinery, fertilizer, metal, motor vehicle, chemicals, edible oil, rice, scrap ship etc.   Export: During the year 2010 bank handled 46,699 Export Bills for Tk.14,842 crore as against 44,291 Export Bills for Tk. 10,642 crore in 2009 showing 39.46% growth in amount. Major export financed items are readymade garments, frozen foods & vegetables, jute & jute goods etc.

The Country’s Industrialization:

As per Investment Policy of IBBL, top priority has been given towards the Industrial development of the country. The Bank’s Investment portfolio is gradually being increased towards industrial finance along with commercial investment.  IBBL’s investment in industrial sector is substantially higher compared with those of other commercial Banks.

Housing Investment scheme:

IBBL has taken massive initiative to invest under the Housing Investment Scheme for the eligible citizens major metropolitan cities. With limited income, upper middle class and middle class can take the advantage of this program. This program is popularly known as Hire Purchase under Shirkatul Melk.  Investment through this mode is solving accommodation problems in the major cities at the same time contributing to the economy through a wide range of backyard linkage industries including rod, cement, wood, tiles & fittings, equipment (like lifts and generators) as well as employs a large number of construction related staff.

Healthcare Program:

 IBBL provides health care through six fully owned hospitals, 7 community hospitals consisting of 1,021 beds, 561 doctors and 411 staffs. In addition to these hospitals, it has been organizing mobile eye camps and charitable dispensaries.  Thousands of patients, especially middle class and lower middle class families take benefits of these hospitals every year.

Recommendation:

It is not unexpected to have problems in any organization. There must be problems to operate an organization. But there must be remedies to follow. The following commendations can be suggested to solve the above mentioned problems:

1. IBBL should increase its manpower level. Additional and skilled manpower in the officer and staff level should be recruited in an urgent basis.
2. Efficient manpower should be recruited with having strong academic background of the related subjects.
3. ATM Booth should be established.
4. More equipment like Note Counting Machine, photocopier etc. should be brought.
5. IBBL should appoint a Customer Relation Officer at Branch level.
6. Specialized services to be undertaken to the customers.
7. IBBL should try to reduce their disbursement timing.
8. Arrangement of monthly /quarterly training courses /workshops for the selected by the authority in order to promote employee to their desired level.
9. More technological instruments should be brought for smooth working speed.
10. More furniture should be brought to the Branch, like chairs, cabinet etc.
11. To avoid the gathering of customers during the first hour of the working days, shift working system of the employees should be started. Shift- wise working may also reduce over work pressure on one’s own account.
12. Proper job appreciation should be done by providing performance based awards etc.
13. Marketing expertise should be recruited.
14. IBBL needs to increase the job satisfaction level of its employees by providing several performance based awards.
15. Enhancement of remuneration package should be competitive and attractive.
16. Employees should be properly learnt about the mission and vision of Islamic Banking, thus will implement their job in that way.
17. The authority of IBBL should conveyance pressure on Government bodies to run proper and sufficient application of Islamic Banking law in Bangladesh.
18. The Bank should arrange wide varieties of regular programs about Islamic Banking Function countrywide to remove the negative impression about IBBL.
19. IBBL should utilize “Internship Program” as one kind of promotion policy. To do so this Bank should provides facilities to the internees through proper placement and practical operations as well as job certainty to those who bring introduce themselves the best performers in doing their particulars.
20. IBBL should try to attend different types of target customer.
21. Maximum clients do not know about IBBL’s Foreign Exchange Policy. They should carryout more promotional activities to make clients aware about their offers.
22. It was observed that, IBBL is absent in various marketing activities like TV, Print Media, Bill Boards, and Sponsorships etc. Bank should advertise about itself so that it can attract more clients that will increase the business volume of the bank.
23. Making the Shariah Inspection strong regarding all type of foreign exchange activities of the bank.

Conclusion

Islami Bank Bangladesh Limited is the faith of mass people in the Banking industry of Bangladesh. It’s act as a role model in this sector. Nevertheless it’s a passion and the largest commercial bank in this Muslim populated Islamic country. Islami Bank Bangladesh limited based on Islamic Shariah, which is nicely match with the culture of Bangladesh. It’s a practice mass banking which touches the income level of general public of this less developed country and it has generated a great effect on the socio-economic development. By its various investment mechanism and special investment scheme its generate employment and develop entrepreneurs throughout the country. Interest free banking system is no more a concept it’s a reality. More than 300 Islamic Banks, financial institutions are operating in different countries throughout the world as Islami Bank Bangladesh Limited does also operating its system interest free. Despite tremendous popular support spectacular success in terms of mobilization of deposit and distribution of profit, Islamic Banking in Bangladesh cannot yet achieve the desired level of success due to the absence of appropriate  legal frame work for the carrying out Islamic banking operation of the country. Social justice is in economic sector may be ensured as the banking is growing the same rhythm and it’s an achievement in banking sector.

IBBL will be more effective in our economy by lunching new financial products to attract deposit as Consumer Credit Scheme, Pension Scheme, Child Education Scheme, and Plastic Money ATM etc.

Bibliography:

1. Annual Reports of IBBL (Last five Years).
2. Several Booklets from Islami Bank Bangladesh Limited.
3. Several Newsletters from Islami Bank Bangladesh Limited.
4. Islami Bank Bangladesh Limited Web site.
5. Different Types of Products of IBBL i.e. Leaflets, Brochures, Synopsizes etc.