An Internship Report On Modes of Investment A Study on Islami Bank Bangladesh Limited (part-4)

§ The bank must deliver the goods to the client at the time and place specified in the contract.

§ The price is fixed at the time of the agreement and cannot be altered.

§ The bank is not required to disclose the profit made on the transaction

iii. Bai-Salam:

Salam means advance purchase. It is a mode of business under which the buyer pays the price of the goods in advance on the condition that the goods would be supplied / delivered at a particular future time. The seller supplies the goods within the fixed time.

Features of Bai-Salam:

§ Generally, industrial and agricultural products are purchased\ sold in advance under Bai-Salam mode of investment to infuse finance so that product is not hankered due to shortage fund/cash.

§ It is permissible to obtain collateral security from the seller client to secure the investment from any hazards via non-supply/ partial supply of commodity/product(s), supply of low quality commodity /product(s).

§ It is also permissible to obtain Mortgage and/or Personal Guarantee from a third party as security before the signing of the Agreement or at the time to signing the Agreement.

§ The seller client may be made agent of the Bank to sell the goods delivered to the Bank by her provided a separate agency agreement is executed between the bank and the client.

Parallel Salam:

Parallel Salam is a Salam contract whereby the seller depends, for executing his obligation, on receiving what is due to him - in his capacity as purchaser from a sale in a previous Salam contract, without making the execution of the second Salam contract dependent on the execution of the first one.

The following conditions are essential in the contracts of Murabaha, Bai-Muajjal and Salam. The respective contracts must include the following aspects regarding the goods:

§ Number/Quantity, Quality,

Page | 41

§ Sample,

§ Quality,

§ Price and amount of profit,

§ Date of supply/time limit,

§ Place of supply,

§ Who will bear the cost of supply?

§ Timeframe for payment in case of Bai-Murabaha and Bai-Muajjal.

iv. Istisna:

A contract executed between a buyer and a seller under which the seller pledges to manufacture and supply certain goods according to the specification of the buyer is called Istisna. An Istisna agreement is executed when a manufacturer or a factory owner accepts a proposal placed to him by a person or an Institution to produce/manufacture certain goods for the latter at a certain negotiated price. Here, the person giving the order is called Mustasni, the receiver of the order is called Sani and the goods manufactured as per order is called Masnu. An order placed for manufacturing or producing those goods which under prevailing customs and practice are produced or manufactured will be treated as Istisna contract.

Features of Istishna:

§ It facilitates the manufacturer sometimes to get the price of the goods in advance, which he may use as capital for producing the goods.

§ It gives the buyer opportunity to pay the price in some future dales or by go downs.

§ Istishna is specially practiced in manufacturing and industrial sectors; however, it can be practiced in agricultural and constructions sectors also.

Parallel Istisna:

If it is not stipulated in the contract that the seller himself would reduce/provide the goods or services, then the seller can enter into another contract with a third party for getting the goods or services produced/ provided by the third party. Such a contract is called Parallel Istisna.

Page | 42

4.4 Sharing Mechanism:

i.Mudaraba:

Mudaraba is a shared venture between labor and capital. Here Bank provides with entire capital and the investment client conducts the business. The Bank, provider of capital, is called Sahib-Al-Maal and the client is called Mudarib. The profit is to be distributed between the bank and the investment client at a predetermined ratio while the bank has to bear the entire loss, if any.

ii. Musharaka:

Musharaka means partnership business. Every partner has to provide more or less equity funds in this partnership business. Both the bank and the investment client reserve the right to share in the management of the business. But the bank may opt to permit the investment client to operate the whole business. In practice, the investment client normally conducts the business. The profit is divided between the bank and the investment client at a predetermined ratio. The loss, if any, is to be borne by the bank and the investment client according to capital ratio.

4.5 Ijara Mechanism:

Ijara:

The mode under which any asset owned by the bank, by creation, acquirement or building-up is rented out is called Ijara or leasing. In this mode, the leasee pays the bank rents at a determined rate for using the assets/properties and returns the same to the bank at the expiry of the agreement. The bank retains absolute ownership of the assets/properties in such a case. However, at the end of the leased period, the asset may be sold to the client at an agreed price.

i. Ijarah Muntahia Bittamleak (Hire-Purchase):

Under this mode, the bank purchases vehicles, machineries and instruments, building, apartment etc. and allowed clients to use those on payment of fixed rents in installments with the ultimate objective to sell the asset to the client at the end of the rental period . The client acquires the ownership/ title of the assets/ properties subject to full payment/adjustment of all the installments.

Page | 43

ii. Hire-Purchase Musharaka Mutanaqasa (HPMM):

Hire-purchase Musharaka Mutanaqasa means purchasing and acquiring ownership by one party by sharing in equity and paying rent for the rest of the equity held by the bank/or other party. Under this mode, the bank and the client on a contract basis jointly purchase vehicles, machineries, building, apartment etc. The client uses the portion of the assets owned by the bank on rental basis and acquires the ownership of the same assets by way of paying bank's portion of the equity on the assets in installments together with its rents as agreed upon.

4.6 Welfare-oriented Investment Schemes:

In addition to the normal commercial and industrial investment operations, IBBL has 14 Special Investment Schemes targeting different economic groups. The schemes are implemented and expanded to meet the specific and welfare oriented needs of different groups of people particularly the under-privileged downtrodden and the neglected section of the population of the country. To uplift the lifestyle of these people, some welfare-oriented special investment schemes as under have been undertaken:

i.Household Durable Investment Scheme:

Low-income people involved in diverse professions get benefit out of this scheme. They are provided with household products like refrigerator, TV, motor-cycle, furniture, ornaments, computer etc. under this financing scheme.

ii.Housing Investment Scheme:

The bank has introduced this scheme to ease the serious housing problem in the urban areas and to make arrangement for comfortable accommodation of the fixed income group such as: officials of the defense services, permanent officials of government, semi-government and autonomous organizations, faculty members of the established universities, university colleges & medical colleges, graduate engineers, doctors and established professionals, international financial organizations, donor agencies, foreign embassies etc., officials of reputed local public limited companies.

Page | 44

iii.Real Estate Investment Scheme:

Real Estate Finance plays a pivotal role in improving standard of living, empowering the middle-income and lower-income groups and thereby promoting equitable growth in the society. It does not only provide physical shelter but also upgrade the lives of the dwellers in terms of skills enhancement, income generation, increased security, health, self-confidence and human dignity. IBBL has steady growth in the Real Estate Sector.

iv.Transport Investment Scheme:

To ease the existing transportation problem and to accelerate the pace of economic growth and development of the country, particularly through expansion of trade, commerce and industry, the bank has taken up this scheme.

v.Car Investment Scheme:

IBBL has designed the scheme for the mid and high ranking officials of the government and semi-government organizations, corporations, executives and directors of big business houses and companies and for persons of different professional groups on easy payment terms and conditions.

vi.Investment Scheme for Doctors:

The scheme is meant for fresh medical graduates intending to meet up medical centers. IBBL comes forward to their aid to help them procure medical equipment or to set up diagnostic laboratory, pharmacy, clinic etc.

vii.Small Business Investment Scheme:

Small business persons and entrepreneurs of different cities and villages get investment facilities from this scheme which is contributing greatly to generate income and employment and to develop standard of life of different segments of low income people. This bank provides different types of agricultural instruments, equipment for operating small trade and finance, small shop, light transport, photocopy machine, tailoring machine, machinery for small and cottage industry etc. under this scheme.

Page | 45

viii.Agricultural Implements Investment Scheme:

Keeping the view of the people-orientation and welfare objectives of the Bank, this scheme has been introduced to provide powers tillers, power pumps, shallow tube-wells, thresher machines etc. on easy terms to the unemployed rural youths for self-employment and to farmers to help them augment production in the agriculture sector.

ix.Micro-Industries Investment Scheme:

To create a wider base for industries and to encourage the establishment of micro-industries in different areas of the country by the potential entrepreneurs and to diversify the Bank’s investment portfolio, the bank has introduced „Micro Industries investment Scheme‟. Different sectors including food and agriculture based industries, plastic & rubber industries, forestry and furniture industries, engineering industries, service industries, electrical accessories industries, computer technology industries, paper products industries, handicraft industries, fishery &livestock farming, hollow bricks, roof tiles and any other viable micro-industries have been identified for financing under the scheme.

x.Rural Housing Investment Scheme:

This scheme was launched to extend housing facility to the rural people living within 5 kilometers area of an IBBL branch. Employees of the public, semipublic or autonomous institutions, non-resident Bangladeshis and businesspersons are preferred for this investment. Easy term investment is given for constructing new houses, repair of old houses and purchasing ready-made flats and houses etc.

xi.Women Entrepreneurs Scheme:

IBBL has introduced “Women Entrepreneurs Investment Scheme” to help women contribute to GDP, generate income & employment and to develop their socioeconomic condition. Under this scheme Bangladeshi nationals aged between 18-50 years, genuine women entrepreneurs, women already engaged in business, self-employment activities as owners, skilled and semi-skilled female persons having practical experience in the respective field may apply for investment.

Page | 46

xii.NRB Investment Scheme:

For promoting investment among non-resident Bangladeshis and for encouraging them to remit money through banking channel, IBBL has launched NRB Entrepreneurs Scheme. Expatriates aged between 18 to 60 years or their family members who run account with IBBL for remitting money are eligible for this investment.

Direct Investment:

Under this mode, the bank can under its full proprietorship conduct business by directly investing in the industries, trading, transports etc. In these cases, the profit/loss fully goes to the bank.

Investment Auctioning:

Selling by auction of those assets/goods acquired by the bank through direct investment is called investment auctioning. Generally, the bank establishes industrial units by direct investment, makes the same operation profitable and then sells out on the auction. This mode of investment is very helpful for industrialization of the country.

Quard:

It is a mode to provide financial assistance/ loan with the stipulation to return the principal amount in the future without any increase thereon.

Quard Hassan:

This is a benevolent loan that obliges a borrower to repay the lender the principal amount borrowed on maturity. The borrower, however, has the discretion to reward the lender for his loan by paying any amount over and above the amount of the principal provided there will be no reference (explicit or implicit) in this regard. If a bank provides its client any loan, it can receive an actual expenditure relating to the loan as service charge only once. It cannot charge annually at a percentage rate. If a loan is provided against the money deposited by a client in the bank, it has the right not to pay any profit against the amount of money given as a loan. But profit should be paid on the rest of the amount deposited as per previous agreement.

Page | 47

Part Five

Analysis and Findings

5.1. Analysis of Investment:

5.1.1 Year wise General Investment Trend:

General investments are stated in the balance sheet on gross basis. General investments and bills purchased and discounted are on the basis of their maturity/ repayment term.

(Amount in million taka)

Figure: General Investment Trend of IBBL in last 5 years.

Source: Annual report 2010-2014

General investment of Islami Bank Bangladesh Limited was increasing year by year. The bank’s general investment increased to Tk.372,921 million as on December 31, 2012 from Tk. 305,841 million as on December 31, 2011 showing an increase of Tk.67,080 million, i.e., 21.93% growth against 10.03% investment growth of the banking sector. Total General Investment of the Bank increased to Tk. 463,475 million as on 31.12.2014 from Tk.403,195 million as on 31.12.2013 showing an increase of Tk.60,280 million, i.e. 15% growth. The growth is about the country investment growth of 14%.

Page | 48

5.1.2 Investment Deposit:

(Amount in million taka)

Particulars		2010	2011		2012	2013	2014
Total Deposits		291,935	341,854		417,844	473,141	560,696
Total Investment	275,494		322,772	399,931		474,016	564,332

(Amount in million taka)

Figure: Deposits and Investment of IBBL in last 5 years

Source: Annual Reports 2010-2014

Page | 49

From the graph we can see that, General investment of Islami Bank Bangladesh Limited was increasing year by year. The bank’s general investment increased to Tk.372,921 million as on December 31, 2012 from Tk. 305,841 million as on December 31, 2011 showing an increase of Tk.67,080 million .Total General Investment of the Bank increased toTk. 463,475 million as on 31.12.2014 from Tk.403,195million as on 31.12.2013 showing an increase of Tk.60,280 million, i.e. 15% growth.

5.1.3 Mode-wise Investment Position:

Mode	2010			2011			2012			2013		2014
Mode	Amount	% of total Investment		Amount	% of total Investment		Amount	% of total Investment		Amount	% of total Investment	Amount	% of total Investment
Bai-Murabaha	146,135		55.52%	177,136	57.92%	221,632			59.43 %	224,456	55.17%	281,556	60.75%
HPSM	80,093		30.42%	89,070	29.12%	96,056			25.76%	95,491	23.47%	109,941	23.72%
Bai-Muajjal	12,393		4.71%	15,912	5.20%	18,295			4.91%	23,103	5.68%	15,443	3.33%
Bill Purchased & Negotiation	5,141		1.95%	2,744	0.91%	9,531			2.56%	23,261	6.61%	30,424	6.56%
Quard	2,095		0.80%	5,614	1.83%	9,156			2.46%	13,670	3.36%	15,478	3.34%
Bai- Salam	3,624		1.38%	3,528	1.15%	4,532			1.22%	3,889	0.96%	4,808	1.04%
Mudaraba	1,500		0.57%	2,266	0.74%	-			0.00%	-	0.00%	3,000	0.65%
Musharaka	12,244		4.65%	9,571	3.13%	13,719			3.68%	19,323	4.75%	2,825	0.61%
Total	263,225		100%	3,05,841	100%	3,72,921			100%	403,195	100%	463,475	100%
Note: All the amounts use and show in this table and analysis are in million Taka

Page | 50

(Amount in million Taka)

Figure: Mode-wise Investment of IBBL in last 5 years

Source: Annual Report 2010-2014

The graph depicted above in 2014 the bank’s investment in all modes except Mudaraba was in increasing mode from 2010 to 2013. Bai-Murabaha was the highest volume of investment the bank made over the years. Excellent growth has been achieved in the modes of investment of HPSM and Bill Purchased and Negotiation by the bank from 2010 to 2014.

Page | 51

5.1.4 Sector-wise Investment Position:

Sector	2010					2011				2012		2013		2014
Sector	Amount		%of total Investment	Amount			% of total Investment			Amount	% of total Investment	Amount	% of total Investment	Amount	% of total Investment
Industrial (excluding SME)	113,979	43.30%			122,270			39.98%	108,930		29.21%	52,861	14%	77,558	18%
Commercial	46,142	17.53%			38,234			12.50%	44,488		11.26%	125,788	31%	129,544	28%
Real Estate	11,336	4.31%			16,966			5.55%	23,231		5.46%	27,126	7%	37,680	8%
Agriculture	14,252	5.41%			20,923			6.84%	20,992		5.78%	20,385	5%	11,131	3%
Transport	4,583	1.74%			6,457			2.11%	6,887		1.90%	6,679	2%	6,435	1%
SME	72,933	27.71%			100,991			33.02%	168,393		46.93%	170,356	41%	201,127	42%
Total	263,225	100%			305,841			100%	372,921		100%	403,195	100%	463,475	100%
Note: All the amounts use and show in this table and analysis are in million Taka

Page | 52

(Amount in million Taka)

Figure: Sector-Wise Investment of IBBL in last 5 years

Source: Annual Report 2010-2014

From the graph we can see that, in 2014 the bank’s investment in major sectors except industrial sector (excluding SME) was increased than previous years. And in the same year investment in SME became the largest portion of total investment. In 2014 the bank did not face any negative growth in any sector’s investment except in industrial sector due to more emphasize on SME sector which results with an extraordinary growth.

Page | 53

5.1.5 Scheme-wise Investment:

Name of Scheme	2010	2011	2012	2013	2014
Rural Development Scheme (RDS)	5,110.00	7,072.02	10,390	13,731	17,380
House-hold Durables Scheme (HDS)	961.64	1070.01	955	1,048	1,392
Investment Scheme for Doctors (ISD)	15.27	13.91	32	37	55
Transport Investment Scheme (TIS)	4,732.15	6,706.50	6,887	7,057	6,832
Car Investment Scheme (CIS)	1,703.44	2,347.60	2,774	75	69
Small Business Investment Scheme (SBIS)	1,703.44	2,347.60	2,774	3,202	3,817
Micro-Industries Investment Scheme (MIIS)	47.44	38.18	36	29	22
Agricultural Implements Investment Scheme (AIIS)	127.15	209.60	278	337	882
Housing Investment Scheme (HIS)	418.92	366.68	316	261	209
Housing Investment Program (HIP)	10,155	12,485	15,660	15,903	2,078
Palli Griha Nirman Beniyog Prakalpa (PGNBP)	358	903	1,483	2,059	2,717
Sub-total (Investment under Schemes)	23,767	31,366	43,739	43,739	54,156
Total Investment	263,225	305,841	406,817	403,195	463,475
% to total Investment	9.03%	10.26%	10.75%	10.85%	11.68%
Note: All the amounts use and show in this table and analysis are in million Taka

Page | 54

(Amount in million Taka)

Figure: Scheme-wise Investment of IBBL in last years

Source: Annual Report 2010-2014

From the table and graph it can be seen that almost all the schemes are increasing year by year. Among them Rural Development Scheme, House-hold Durable Scheme, Transport Investment Scheme, Small Business Investment Scheme and Real Estate Investment Program have the highest volume of investment amount as well as a notable percentage of growth. From 2010 to 2014 almost all types of scheme became doubled to five times bigger in amount of investment.

Page | 55

5.1.6 Year-wise SME Investment of IBBL:

Year	2010	2011	2012	2013	2014
Total SME Investment	78,456	108,670	149,214	170,356	201,127
Note: All the amounts use and show in this table and analysis are in million Taka

(Amount in million Taka)

Figure: Year-wise SME Investment of IBBL

Source: Annual Report 2010-2014

SME Investment of Islami Bank Bangladesh Limited was increasing very rapidly during last five years. The bank did an outstanding SME investment business during this period with their more availability and excellencies.

Page | 56

5.1.7 Investment Deposit Ratio:

An investment deposit ratio is a commonly used statistic for assessing a bank's liquidity by dividing the banks total investments by its total deposits. This number, also known as the IDR ratio, is expressed as a percentage. If the ratio is too high, it means that banks might not have enough liquidity to cover any unforeseen fund requirements; if the ratio is too low, banks may not be earning as much as they could be.

Particulas	2010	2011	2012	2013	2014
Total Deposits	291,935	341,854	417,844	473,141	560,696
Investment Deposit Ratio	90.17%	87.29%	85.18%	82.39%	79.88%

Figure: Investment Deposits Ratios of IBBL in last years

Source: Annual Report 2010-2014

Page | 57

From the above graph it is seen that the investment deposit ratio of IBBL was fluctuating over the time. By considering the above graph it can be said that the bank is capable to utilize its deposit into an investment that indicates a good sign for the bank. The bank faced less than 85% of the investment deposit ratio during the last two years and decreased to exceed 79.88% of the investment deposit.

5.1.8 Division Wise Investment:

Figure: Division Wise Investment of IBBL in 2014.

Source: Annual Report 2014

From the table and graph we can see that, In 2014 more than 50% of total investment was distributed in Dhaka Division. It was happened due to the position of country’s commercial hubs in Dhaka as well as maximum headquarters of different organizations are situated in Dhaka. Chittagong Division was in the second position for the same reasons. Others divisions got a lower distribution of investment due to the unwillingness of the bank besides less demand for investment aroused in these divisions.

Page | 58

5.1.9 Area Wise Investment:

Figure: Area Wise Investment of IBBL of IBBL in 2014.

Source: Annual Report 2014

From the above graph we can see that, In 2014 the investment of IBBL was much excellence in urban areas than rural areas. The total investment of rural areas were 5% and the urban areas were 95%.

Page | 59

5.2 Findings:

Islami Bank Bangladesh Limited has now a name with its own brand both home and abroad within the 30 years of its hard and long journey. From the report I get some positive and negative findings about Islami Bank Bangladesh Limited. The findings are necessary for the bank to take corrective measures. So, I disclose the findings below:

Ø It has been found that, IBBL’s investment management policies are effectively shaped with all rules and regulations of the Bangladesh Bank and the Islamic Shari’ah.

Ø The investment deposit ratio of IBBL was fluctuating over the time.

Ø The investment of IBBL has increased over the years in different sectors but the growth rate is low compare to that.

Ø Excellent growth has been achieved in the modes of investment of Bill Purchased & Negotiation and Quard by the bank from 2010 to 2014. But under Mudaraba mode they have very little investment because of less demand of clients and willingness of the bank.

Ø General investment of Islami Bank Bangladesh Limited was increasing year by year. Total General Investment of the Bank increased to Tk. 463,475 million as on 31.12.2014 from Tk.403,195 million as on 31.12.2013 showing an increase of Tk.60,280 million, i.e. 515% growth.

Ø All the schemes are increasing year by year. Among them Rural Development Scheme, House-hold Durable Scheme, Transport Investment Scheme, Small Business Investment Scheme and Real Estate Investment Program have the highest volume of investment amount as well as a notable percentage of growth.

Ø In 2014 the bank did not face any negative growth in any sector’s investment except in industrial sector due to more emphasize on SME sector which results with an extraordinary growth.

Ø The deposit collection of IBBL has increased over the year but the growth rate has fluctuated as well due to many customers had closed their accounts.

Ø It has been observed that the investment of IBBL was much excellence in urban areas and more than 50% of total investment was distributed in Dhaka Division.

Page | 60

Part Six

Recommendations and Conclusion

6.1 Recommendations:

Based on findings it can be recommended to progress in future. The recommendations are disclosed below:

Ø The investment sanction procedure should be made quicker since competition is very hard today in the banking industry, it can be done through the creation of sub-department of investment department who will only be liable for sanctioning investment.

Ø An energetic investment recovery unit should also be formed to manage directly accounts with sustained deterioration of investment. To encourage investment recovery unit incentive program may also be introduced.

Ø SME Investment of IBBL was increasing very rapidly during last five years. The bank should keep it up in order to make their position stronger and to take them as a role model as the contributor on SME sector in this country which will inspire others to come forward.

Ø The bank provided the maximum amount of investment focusing commercial and industrial sectors in urban areas mainly on Dhaka Division and Chittagong Division basis. To help the country’s development regionally equal and take the bank as amiable to mass people countrywide.

Ø The bank should give more accentuate to make their fund available as functional to rural based industries and organizations alongside diversified industries which may act as the factors to minimize the investment risk of the bank.

Ø Most of the people of our country have a bad impression about IBBL’s operation regarding indirect generation of interest, which means no difference between conventional banking & IBBL, because people have no proper knowledge about activities of IBBL as well as its mechanism. It should improve through various seminar and Islamic discussion.

Ø To fulfill the vision of mass banking IBBL should grants investment portfolio to new entrepreneurs.

Page | 61

Ø The bank should appoint a sufficient number of women employees to deal women entrepreneurs and professionals to understand their need and thus create demand for investment.

Ø The bank should reduce its classified investment more by maintaining investment carefully in safe sector and choosing most credit worthy borrower.

Ø An Islamic bank earns its principal revenue from profit on investment. To avoid investment risk as much as possible through minimizing adverse selection, before sanctioning any investment (loan) the officers of the bank have to observe whether every aspect of principles of lending is filled and other things such as credit requirement, accountability, prepayment of loans, collections, insurance and other required fields are covered or not.

Ø As IBBL holds the highest credit rating, regularly maintains all the Credit Risk Management (CRM) regulations imposed by Bangladesh Bank and implements Basel II Accord rigorously in order to maintain sound investment risk management.

Ø The bank should always be aware, ready to respond quickly against competitors' actions as well as different economic conditions, bring new and innovative investment products and services, utilize advanced technical and technological means to be quickest and errorless, arrange various investment risk related training and workshop for the employees regularly etc. in order to keep their current position among the Islamic banks of the country as well as the banking industry of Bangladesh and be placed in a better position in the upcoming future.

Page | 62

6.2 Conclusion:

Islami Bank Bangladesh Limited (IBBL) has been established with the aim of contributing to the balanced growth and equitable development of the country through diversification of its investment portfolio by size, sector, geographical area etc. for the bank’s ultimate objective of ensuring justice and equity in the field of economy in the interest of all segments of people. The bank has been endeavoring hard towards the achievement of the above goals and making progress tremendously in this regard. With the unprecedented support of the stakeholders of all categories the bank now is handling investible fund of more than Tk. 320,000 million which is 9% of national investment and 58% of all Islamic Banks and thereby IBBL hold a strong position in the country’s economy being appreciated by people of all walks of life. The bank has been able to allocate its investible fund in such a manner that safeguards the interest of its stakeholders as well as meets the country’s needs. The bank has been emphasizing on the industrialization of the country and giving due attention to the priority sectors. With this end in view and to reduce country’s dependence on foreign countries a significant amount has been deployed in Spinning, Garments, Iron/Steel and Engineering. Food/Beverage, Ship Braking, Ship Building, Power (Electricity) sectors. At the same time, the bank has been laying stress on trade and imports of consumer goods/fertilizer etc. to meet the country’s immediate needs. Finally, Islami Bank Bangladesh Limited has been established with a view to conduct interest free banking to establish participatory banking instead of the debtor-creditor relationship and finally to establish welfare oriented banking through its investment operations that would lead to a justice based society.

Page | 63

Bibliography

Books:

Ø Dr. Muhammad Nurul Islam (2012), “Islamic Banking”, 1st Edition, Nazifa-Sakina-Bari Foundation, Dhaka, Bangladesh.

Ø “Islami Banking” Written By- A.A.M Habibur Rahman (Senior Vice President), IBBL, 3rd Edition, January, 2008.

Ø Md. Habibur Rahman, “Different Investment Modes of IBBL & Difference with that of Conventional Banking”. DMD, CIW, IBBL, Dhaka.

Reports and Documents:

Ø IBBL (2010-14), Annual Reports, IBBL.

Ø IBBL (2010-2014), Business Development Conference Reports, IBBL.

Websites:

Ø www.islamibankbd.com

Ø www.islamic-bank.com/sharia-finance/glossary