Misplaced Pages

Islami Bank Bangladesh: Difference between revisions

Article snapshot taken from Wikipedia with creative commons attribution-sharealike license. Give it a read and then ask your questions in the chat. We can research this topic together.
Browse history interactively← Previous editContent deleted Content addedVisualWikitext
Revision as of 19:32, 19 May 2024 edit103.108.60.153 (talk) LinkTags: Mobile edit Mobile web edit← Previous edit Latest revision as of 15:20, 26 December 2024 edit undoWritingidea (talk | contribs)5 editsm Latest business position of IBBPLCTag: Visual edit 
(26 intermediate revisions by 16 users not shown)
Line 1: Line 1:
{{Short description|Bank in Bangladesh}} {{Short description|Bank in Bangladesh PLC}}
{{Infobox company {{Infobox company
| name = Islami Bank Bangladesh PLC. | name = Islami Bank Bangladesh PLC
| logo = Islamic_Bank_Bangladesh.jpg | logo = Logo of Islami Bank Bangladesh PLC.png
| logo_caption = Logo of Islami Bank Bangladesh PLC
⚫ | image =
| image = IBBPLC logo.png
| image_caption =
⚫ | caption =
| type = ] | type = ]
| traded_as = {{Dse|ISLAMIBANK}} | traded_as = {{Dse|ISLAMIBANK}}<br />{{Chittagong Stock Exchange|ISLAMIBANK}}
| industry = ]<br />] | industry = ]<br />]
| foundation = {{Start date and years ago|1983|03|30|df=y}} | foundation = {{Start date and years ago|1983|03|30|df=y}}
| location = Islami Bank Tower 40, ], ] - 1000, ] | location = Islami Bank Tower 40, ], ]
| hq_location_city = ] - 1000
| hq_location_country = Bangladesh
| area_served = ] & overseas | area_served = ] & overseas
| key_people = Ahsanul Alam (])<br /> Mohammed Monirul Moula (])<br /> Muhammad Qaisar Ali (Additional Managing Director)<br /> Md. Altaf Hossain (Additional Managing Director)<br /> J Q M Habibullah, FCS (Additional Managing Director)<br /> | key_people = Md Obayed Ullah Al Masud (])<ref>{{cite news |title=ইসলামী ব্যাংকের চেয়ারম্যান পদে ওবায়েদ উল্লাহ |url=https://www.kalerkantho.com/print-edition/industry-business/2024/08/23/1417753 |access-date=3 September 2024 |work=Kaler Kantho |date=23 August 2024|lang=bn}}</ref><br /> Mohammed Monirul Moula (])<br /> Md. Ashraful Haque, FCA (])<br />J Q M Habibullah, FCS (])
| products = ], ATM/CRM services, Internet Banking, Payment Gateway, Mobile Banking, ]<br />]<br />]<br />] | products = ], ATM/CRM services, Internet Banking, Payment Gateway, Mobile Banking, ]<br />]<br />]<br />]
| revenue = {{increase}} {{BDTConvert|88.74|b|lk=yes}}<ref>{{Cite web|date=31 December 2019|title=Independent Auditors' Report to The Shareholders of Islami Bank Bangladesh Limited|url=https://islamibankbd.com/upload_dir/annualreport/Financial%20Statements%20for%20the%20year%202019.pdf}}</ref> (''2019'') | revenue = {{increase}} {{BDTConvert|88.74|b|lk=yes}}<ref>{{Cite web|date=31 December 2019|title=Independent Auditors' Report to The Shareholders of Islami Bank Bangladesh Limited|url=https://islamibankbd.com/upload_dir/annualreport/Financial%20Statements%20for%20the%20year%202019.pdf|access-date=21 November 2020|archive-date=1 December 2022|archive-url=https://web.archive.org/web/20221201094516/https://islamibankbd.com/upload_dir/annualreport/Financial%20Statements%20for%20the%20year%202019.pdf|url-status=dead}}</ref> (''2019'')
| operating_income = {{increase}} {{BDTConvert|43.79.74|b|lk=yes}}<ref>{{Cite web|date=31 December 2019|title=Independent Auditors' Report to The Shareholders of Islami Bank Bangladesh Limited|url=https://islamibankbd.com/upload_dir/annualreport/Financial%20Statements%20for%20the%20year%202019.pdf}}</ref> (''2019'') | operating_income = {{increase}} {{BDTConvert|43.79.74|b|lk=yes}}<ref>{{Cite web|date=31 December 2019|title=Independent Auditors' Report to The Shareholders of Islami Bank Bangladesh Limited|url=https://islamibankbd.com/upload_dir/annualreport/Financial%20Statements%20for%20the%20year%202019.pdf|access-date=21 November 2020|archive-date=1 December 2022|archive-url=https://web.archive.org/web/20221201094516/https://islamibankbd.com/upload_dir/annualreport/Financial%20Statements%20for%20the%20year%202019.pdf|url-status=dead}}</ref> (''2019'')
| net_income = {{decrease}} {{BDTConvert|5.48|b|lk=yes}}<ref>{{Cite web|date=31 December 2019|title=Independent Auditors' Report to The Shareholders of Islami Bank Bangladesh Limited|url=https://islamibankbd.com/upload_dir/annualreport/Financial%20Statements%20for%20the%20year%202019.pdf}}</ref> (''2019'') | net_income = {{decrease}} {{BDTConvert|5.48|b|lk=yes}}<ref>{{Cite web|date=31 December 2019|title=Independent Auditors' Report to The Shareholders of Islami Bank Bangladesh Limited|url=https://islamibankbd.com/upload_dir/annualreport/Financial%20Statements%20for%20the%20year%202019.pdf|access-date=21 November 2020|archive-date=1 December 2022|archive-url=https://web.archive.org/web/20221201094516/https://islamibankbd.com/upload_dir/annualreport/Financial%20Statements%20for%20the%20year%202019.pdf|url-status=dead}}</ref> (''2019'')
| assets = {{profit}} {{BDTConvert|1142.18|b|lk=yes}}<ref>{{Cite web|date=31 December 2019|title=Independent Auditors' Report to The Shareholders of Islami Bank Bangladesh Limited|url=https://islamibankbd.com/upload_dir/annualreport/Financial%20Statements%20for%20the%20year%202019.pdf}}</ref> (''2019'') | assets = {{profit}} {{BDTConvert|1142.18|b|lk=yes}}<ref>{{Cite web|date=31 December 2019|title=Independent Auditors' Report to The Shareholders of Islami Bank Bangladesh Limited|url=https://islamibankbd.com/upload_dir/annualreport/Financial%20Statements%20for%20the%20year%202019.pdf|access-date=21 November 2020|archive-date=1 December 2022|archive-url=https://web.archive.org/web/20221201094516/https://islamibankbd.com/upload_dir/annualreport/Financial%20Statements%20for%20the%20year%202019.pdf|url-status=dead}}</ref> (''2019'')
| equity = {{increase}} {{BDTConvert|79.80|b|lk=yes}}<ref>{{Cite web|date=31 December 2019|title=Independent Auditors' Report to The Shareholders of Islami Bank Bangladesh Limited|url=https://islamibankbd.com/upload_dir/annualreport/Financial%20Statements%20for%20the%20year%202019.pdf}}</ref> (''2019'') | equity = {{increase}} {{BDTConvert|79.80|b|lk=yes}}<ref>{{Cite web|date=31 December 2019|title=Independent Auditors' Report to The Shareholders of Islami Bank Bangladesh Limited|url=https://islamibankbd.com/upload_dir/annualreport/Financial%20Statements%20for%20the%20year%202019.pdf|access-date=21 November 2020|archive-date=1 December 2022|archive-url=https://web.archive.org/web/20221201094516/https://islamibankbd.com/upload_dir/annualreport/Financial%20Statements%20for%20the%20year%202019.pdf|url-status=dead}}</ref> (''2019'')
| num_employees = 21,000<ref name="econom" /> | num_employees = 21,000<ref name="econom" />
| homepage = {{URL|islamibankbd.com}} | homepage = {{URL|islamibankbd.com}}
}} }}
'''Islami Bank Bangladesh PLC. (IBBPLC.) ''' ({{lang-bn|ইসলামী ব্যাংক বাংলাদেশ পিএলসি}}) is an ] company based in ]. It became incorporated on 13 March 1983 as a public limited company under the Companies Act 1913 and started operation on 30 March, the same year.<ref name="Banglapedia">{{cite book|title=Banglapedia: National Encyclopedia of Bangladesh|last=Mazid|first=Muhammad Abdul|publisher=]|year=2012|editor1-last=Islam|editor1-first=Sirajul|editor1-link=Sirajul Islam|edition=Second|chapter=Islami Bank Bangladesh Limited|editor2-last=Jamal|editor2-first=Ahmed A.|chapter-url=http://en.banglapedia.org/index.php?title=Islami_Bank_Bangladesh_Limited}}</ref> IBBPLC maintains its own ATM Booths with a country-wide shared ATM network. IBBPLC has been the largest private banking ] in Bangladesh.<ref name="CorporateInformation">{{Cite web|url=http://www.islamibankbd.com/abtIBBL/abtIBBLCorpInfo.php|title=About IBBL:Corporate Information|website=www.islamibankbd.com|access-date=27 July 2016}}</ref> When IBBPLC was established, it was the first ] in ] to provide banking service based on ].<ref name="bracepl">{{cite web|url=http://www.bracepl.com/brokerage/research/1303900916IBBL160111.pdf|title=Islami Bank Bangladesh Limited|author=Md. Monirul Islam, Md. Ashfaque Alam|publisher=BRAC EPL Stock Brokerage Ltd.|access-date=6 September 2013|archive-date=4 March 2016|archive-url=https://web.archive.org/web/20160304024845/http://www.bracepl.com/brokerage/research/1303900916IBBL160111.pdf|url-status=dead}}</ref> The bank has been listed with both ] and ].<ref name="Banglapedia" /><ref name="bibm">{{cite web|url=http://www.bibm.org.bd/single_member.php?bank_id=5|title=Islami Bank Bangladesh Limited|publisher=Bangladesh Institute of Bank Management|access-date=27 September 2013}}</ref> '''Islami Bank Bangladesh PLC (IBBPLC)''' ({{langx|bn|ইসলামী ব্যাংক বাংলাদেশ পিএলসি}}), more commonly known as '''Islami Bank''', is an ] company based in ]. It became incorporated on 13 March 1983 as a public limited company under the Companies Act 1913 and started operation on 30 March, the same year.<ref name="Banglapedia">{{cite book|title=Banglapedia: National Encyclopedia of Bangladesh|last=Mazid|first=Muhammad Abdul|publisher=]|year=2012|editor1-last=Islam|editor1-first=Sirajul|editor1-link=Sirajul Islam|edition=Second|chapter=Islami Bank Bangladesh Limited|editor2-last=Jamal|editor2-first=Ahmed A.|chapter-url=http://en.banglapedia.org/index.php?title=Islami_Bank_Bangladesh_Limited}}</ref> IBBPLC maintains its own ATM Booths with a country-wide shared ATM network. IBBPLC has been the largest private banking ] in Bangladesh.<ref name="CorporateInformation">{{Cite web|url=http://www.islamibankbd.com/abtIBBL/abtIBBLCorpInfo.php|title=About IBBL:Corporate Information|website=www.islamibankbd.com|access-date=27 July 2016|archive-date=12 May 2020|archive-url=https://web.archive.org/web/20200512231154/https://islamibankbd.com/abtIBBL/abtIBBLCorpInfo.php|url-status=dead}}</ref> The bank has been listed with both ] and ].<ref name="Banglapedia" /><ref name="bibm">{{cite web|url=http://www.bibm.org.bd/single_member.php?bank_id=5|title=Islami Bank Bangladesh Limited|publisher=Bangladesh Institute of Bank Management|access-date=27 September 2013}}</ref>


== History == == History ==
Bangladesh became a member of the Organisation of Islamic Cooperation (OIC) in February 1974 and signed the charter for Islamic Development Bank in September that year. In April 1978, the 9th conference of OIC foreign ministers recommended for reorganizing the banking system of the member countries to Islamic operations systems gradually. In November 1980, A S M Fakhrul Ahsan, Director (Research) of Bangladesh Bank recommended for commencing Islamic banking operation in Bangladesh. In April 1981, the Ministry of Finance in a letter written to Bangladesh Bank recommended to start separate Islamic banking counters in all branches of the state-owned banks of Bangladesh on an experimental basis and keep separate ledgers for this purpose. In November 1982, a delegation of the Islamic Development Bank visited Dhaka to monitor and evaluate the possibility of a joint venture to establish an Islamic bank in the private sector in Bangladesh and recommended the Islamic Development Bank as an entrepreneur to invest capital in the proposed Islamic bank. As a consequence, Islami Bank Bangladesh Limited, the first shari'ah compliant bank in Bangladesh started operations on 30 March 1983.<ref name=":0">{{Cite news |last=Taiyeb |first=Faiz Ahmad |date=2022-12-06 |title=The rise and fall of Islami Bank |url=https://www.thedailystar.net/opinion/views/news/the-rise-and-fall-islami-bank-3189046 |access-date=2023-04-16 |work=The Daily Star |type=Opinion |language=en}}</ref> It was founded by ] and ]i investors who provided 70 per cent of the initial capital.<ref name="econom">{{Cite news|date=2017-08-24|title=Islamic banking grows in Bangladesh, no thanks to the authorities|work=The Economist|url=https://www.economist.com/finance-and-economics/2017/08/24/islamic-banking-grows-in-bangladesh-no-thanks-to-the-authorities|access-date=2021-03-19|issn=0013-0613}}</ref><ref name=":0" /> It is a public limited company registered under the Indian Companies Act of 1913. IBBL is a joint venture of the government of Bangladesh, 22 businessmen of Bangladesh, Islamic Development Bank, and investment firms and banks from Muslim Middle Eastern countries.<ref>{{Cite web|url=http://en.banglapedia.org/index.php?title=Islami_Bank_Bangladesh_Limited|title=Islami Bank Bangladesh Limited |website=Banglapedia|access-date=10 May 2016}}</ref> Bangladesh became a member of the Organisation of Islamic Cooperation (OIC) in February 1974 and signed the charter for Islamic Development Bank in September that year. In April 1978, the 9th conference of OIC foreign ministers recommended for reorganizing the banking system of the member countries to Islamic operations systems gradually. In November 1980, A S M Fakhrul Ahsan, Director (Research) of Bangladesh Bank recommended for commencing Islamic banking operation in Bangladesh. In April 1981, the Ministry of Finance in a letter written to Bangladesh Bank recommended to start separate Islamic banking counters in all branches of the state-owned banks of Bangladesh on an experimental basis and keep separate ledgers for this purpose. In November 1982, a delegation of the Islamic Development Bank visited Dhaka to monitor and evaluate the possibility of a joint venture to establish an Islamic bank in the private sector in Bangladesh and recommended the Islamic Development Bank as an entrepreneur to invest capital in the proposed Islamic bank. As a consequence, Islami Bank Bangladesh Limited, the first shari'ah compliant bank in Bangladesh started operations on 30 March 1983.<ref name=":0">{{Cite news |last=Taiyeb |first=Faiz Ahmad |date=2022-12-06 |title=The rise and fall of Islami Bank |url=https://www.thedailystar.net/opinion/views/news/the-rise-and-fall-islami-bank-3189046 |access-date=2023-04-16 |work=The Daily Star |type=Opinion |language=en}}</ref> It was founded by ] and ]i investors who provided 70 per cent of the initial capital.<ref name="econom">{{Cite news|date=2017-08-24|title=Islamic banking grows in Bangladesh, no thanks to the authorities|newspaper=The Economist|url=https://www.economist.com/finance-and-economics/2017/08/24/islamic-banking-grows-in-bangladesh-no-thanks-to-the-authorities|access-date=2021-03-19|issn=0013-0613}}</ref><ref name=":0" /> It is a public limited company registered under the Indian Companies Act of 1913. IBBL is a joint venture of the government of Bangladesh, 22 businessmen of Bangladesh, Islamic Development Bank, and investment firms and banks from Muslim Middle Eastern countries.<ref>{{Cite web|url=http://en.banglapedia.org/index.php?title=Islami_Bank_Bangladesh_Limited|title=Islami Bank Bangladesh Limited |website=Banglapedia|access-date=10 May 2016}}</ref>


According to '']'', "Islami Bank was a pioneer in financing Bangladesh’s rise as the apparel industry’s ]."<ref name="econom" /> According to '']'', "Islami Bank was a pioneer in financing Bangladesh's rise as the apparel industry's ]."<ref name="econom" />


In 2012, United States Senate Permanent Subcommittee on Investigations mentioned possible ties of Islami Bank Bangladesh Limited to terrorism financing through HSBC Bank which the bank denied.<ref>{{Cite news |date=2012-07-18 |title=US panel exposes governance failure at HSBC |url=https://www.thedailystar.net/news-detail-242548 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref><ref>{{Cite news |date=2012-07-18 |title=Terror financed due to HSBC failure |url=https://www.thedailystar.net/news-detail-242569 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref><ref>{{Cite news |date=2012-07-19 |title=SIBL, Islami Bank clarify their positions |url=https://www.thedailystar.net/news-detail-242706 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref><ref name=":1">{{Cite news |title=HSBC 'helped Islami Bank to fund al-Qaeda' |url=https://bdnews24.com/business/hsbc-helped-islami-bank-to-fund-al-qaeda |access-date=2023-04-16 |work=bdnews24.com |language=en}}</ref> The report questioned the banks link to ].<ref name=":1" /> Islami Bank hired Dana Contratto and Associates, a lobbying company, for 25 thousand USD per month to lobby for the bank in Washington DC.<ref>{{Cite news |last=Rahman |first=Sajjadur |date=2013-09-12 |title=Islami Bank appoints US consultant to clear its name |url=https://www.thedailystar.net/news/islami-bank-appoints-us-consultant-to-clear-its-name |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> In 2012, United States Senate Permanent Subcommittee on Investigations mentioned possible ties of Islami Bank Bangladesh Limited to terrorism financing through HSBC Bank which the bank denied.<ref>{{Cite news |date=2012-07-18 |title=US panel exposes governance failure at HSBC |url=https://www.thedailystar.net/news-detail-242548 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref><ref>{{Cite news |date=2012-07-18 |title=Terror financed due to HSBC failure |url=https://www.thedailystar.net/news-detail-242569 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref><ref>{{Cite news |date=2012-07-19 |title=SIBL, Islami Bank clarify their positions |url=https://www.thedailystar.net/news-detail-242706 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref><ref name=":1">{{Cite news |title=HSBC 'helped Islami Bank to fund al-Qaeda' |url=https://bdnews24.com/business/hsbc-helped-islami-bank-to-fund-al-qaeda |access-date=2023-04-16 |work=bdnews24.com |language=en}}</ref> The report questioned the banks link to ].<ref name=":1" /> Islami Bank hired Dana Contratto and Associates, a lobbying company, for 25 thousand USD per month to lobby for the bank in Washington DC.<ref>{{Cite news |last=Rahman |first=Sajjadur |date=2013-09-12 |title=Islami Bank appoints US consultant to clear its name |url=https://www.thedailystar.net/news/islami-bank-appoints-us-consultant-to-clear-its-name |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref>
Line 36: Line 39:
'''''Change of Ownership''''' '''''Change of Ownership'''''


In 2017, the bank had a sudden change in its ownership and management structure. The newly appointed Bank management claimed the bank was trying to stem out its "] roots". This sudden change, however, has led the bank to a financial crisis.<ref>{{Cite news |script-title=bn:মালিকানা বদলের পর ১৫ মাসেই ইসলামী ব্যাংক সংকটে |url=https://www.prothomalo.com/business/মালিকানা-বদলের-পর-১৫-মাসেই-ইসলামী-ব্যাংক-সংকটে |access-date=2023-01-02 |work=Prothom Alo |language=bn}}</ref> The change also saw foreign investors reduce their stake in the bank.<ref name=":0" /> As of 2017, Islami Bank Bangladesh commands 90% of Islamic-banking assets and deposits in Bangladesh, is the country's biggest private lender overall, has 12 million depositors and a balance-sheet of $10 billion.<ref name="econom" /> After the change, the bank changed their recruitment policy to recruit non-Muslims and more women under newly appointed chairman Arastoo Khan.<ref>{{Cite news |date=2017-01-12 |title=Islami Bank to hire people of all religions, more women |url=https://www.thedailystar.net/frontpage/islami-bank-hire-people-all-religions-more-women-1344130 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> Arastoo Khan replaced Mustafa Anwar.<ref>{{Cite news |date=2017-01-06 |title=Major changes in Islami Bank key positions |url=https://www.thedailystar.net/frontpage/major-changes-islami-bank-key-positions-1341244 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> In 2017, the bank had a sudden change in its ownership and management structure. The newly appointed Bank management claimed the bank was trying to stem out its "] roots". This sudden change, however, has led the bank to a financial crisis.<ref>{{Cite news |script-title=bn:মালিকানা বদলের পর ১৫ মাসেই ইসলামী ব্যাংক সংকটে |url=https://www.prothomalo.com/business/মালিকানা-বদলের-পর-১৫-মাসেই-ইসলামী-ব্যাংক-সংকটে |access-date=2023-01-02 |work=Prothom Alo |date=26 April 2018 |language=bn}}</ref> The change also saw foreign investors reduce their stake in the bank.<ref name=":0" /> As of 2017, Islami Bank Bangladesh commands 90% of Islamic-banking assets and deposits in Bangladesh, is the country's biggest private lender overall, has 12 million depositors and a balance-sheet of $10 billion.<ref name="econom" /> After the change, the bank changed their recruitment policy to recruit non-Muslims and more women under newly appointed chairman Arastoo Khan.<ref>{{Cite news |date=2017-01-12 |title=Islami Bank to hire people of all religions, more women |url=https://www.thedailystar.net/frontpage/islami-bank-hire-people-all-religions-more-women-1344130 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> Arastoo Khan replaced Mustafa Anwar.<ref>{{Cite news |date=2017-01-06 |title=Major changes in Islami Bank key positions |url=https://www.thedailystar.net/frontpage/major-changes-islami-bank-key-positions-1341244 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref>


From January 2019 to March 2019, the defaulted loans of Islami Bank doubled to 69.16 billion BDT.<ref name=":2">{{Cite news |last=Uddin |first=AKM Zamir |date=2019-06-30 |title=Islami Bank’s default loans double in three months |url=https://www.thedailystar.net/business/news/islami-banks-default-loans-double-three-months-1764481 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> It also rescheduled 600 defaulted loans through securing special approvals of Bangladesh Bank.<ref name=":2" /> From January 2019 to March 2019, the defaulted loans of Islami Bank doubled to 69.16 billion BDT.<ref name=":2">{{Cite news |last=Uddin |first=AKM Zamir |date=2019-06-30 |title=Islami Bank's default loans double in three months |url=https://www.thedailystar.net/business/news/islami-banks-default-loans-double-three-months-1764481 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> It also rescheduled 600 defaulted loans through securing special approvals of Bangladesh Bank.<ref name=":2" />


In 2022, many media outlets reported that the bank was giving out loans to suspicious businesses without proper verification.<ref>{{Cite news |last=Sakib |first=Shanaullah |title='Nasty November' for Islami Bank |url=https://en.prothomalo.com/business/local/x60ivy2cbn |access-date=2023-01-02 |work=Prothom Alo |language=en}}</ref><ref name=":3">{{Cite news |date=2022-11-27 |title=How a 24-year-old greenhorn is 'blessed' with a Tk900cr loan |url=https://www.tbsnews.net/economy/banking/how-24-year-old-greenhorn-blessed-tk900cr-loan-539834 |access-date=2023-01-02 |work=The Business Standard |language=en}}</ref> A 24 year old received a 9 billion BDT loan from Islami Bank Bangladesh Limited a month after he established the company, MediGreen.<ref name=":3" /> MediGreen had applied for the loan 14 days after registering.<ref name=":3" /> Another company, S.S Straight Line, received 9 billion BDT loans within three weeks of being founded.<ref name=":3" /> Marts Business, received a 9 billion BDT loan within one month of registration.<ref name=":3" /> In 2022, many media outlets reported that the bank was giving out loans to suspicious businesses without proper verification.<ref>{{Cite news |last=Sakib |first=Shanaullah |title='Nasty November' for Islami Bank |url=https://en.prothomalo.com/business/local/x60ivy2cbn |access-date=2023-01-02 |work=Prothom Alo |language=en}}</ref><ref name=":3">{{Cite news |date=2022-11-27 |title=How a 24-year-old greenhorn is 'blessed' with a Tk900cr loan |url=https://www.tbsnews.net/economy/banking/how-24-year-old-greenhorn-blessed-tk900cr-loan-539834 |access-date=2023-01-02 |work=The Business Standard |language=en}}</ref> A 24 year old received a 9 billion BDT loan from Islami Bank Bangladesh Limited a month after he established the company, MediGreen.<ref name=":3" /> MediGreen had applied for the loan 14 days after registering.<ref name=":3" /> Another company, S.S Straight Line, received 9 billion BDT loans within three weeks of being founded.<ref name=":3" /> Marts Business, received a 9 billion BDT loan within one month of registration.<ref name=":3" />


] which has the controlling stake of the bank took 300 billion BDT loans from Islami Bank Bangladesh Limited.<ref name=":0" /> The group had taken the loans violating banking rules of Bangladesh.<ref>{{Cite news |last=Jamal |first=Eresh Omar |date=2022-12-04 |title=Destroying the economy to save the thieves |url=https://www.thedailystar.net/opinion/views/the-overton-window/news/destroying-the-economy-save-the-thieves-3187386 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> Around same time large amount of deposits were withdrawn from the bank feeding into a liquidity shortage.<ref name=":4">{{Cite news |last=Parvez |first=Sohel |date=2023-02-24 |title=Depositors withdraw Tk 11,426cr from Islamic banks in 3 months |url=https://www.thedailystar.net/business/economy/news/depositors-withdraw-tk-11426cr-islamic-banks-3-months-3255956 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> Bangladesh Bank appointed an observer to the bank and began an investigation into irregular loans worth 72.46 billion BDT.<ref>{{Cite news |date=2022-12-12 |title=BB decides to appoint observers at the two Islamic banks |url=https://www.thedailystar.net/business/news/bb-decides-appoint-observers-the-two-islamic-banks-3194356 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref><ref>{{Cite news |last=Uddin |first=AKM Zamir |date=2022-11-29 |title=TK 7,246CR loans to 9 firms: BB probing ‘breach of rules’ at Islami Bank |url=https://www.thedailystar.net/news/bangladesh/news/tk-7246cr-loans-9-firms-bb-probes-breach-rules-islami-bank-3182046 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> In December, Justices ] and ] of the High Court Division ordered an investigation into the irregular loans at Islami Bank and sought an explanation from S. Alam Group on the 300 billion BDT loan.<ref>{{Cite news |date=2022-12-04 |title=HC orders probe into 'loan scams' in 3 banks |url=https://www.thedailystar.net/news/bangladesh/crime-justice/news/hc-orders-probe-loan-scams-3-banks-3187086 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> On 29 December 2022, Islami Bank Bangladesh Limited took 80 billion BDT in emergency loans from Bangladesh Bank.<ref name=":4" /><ref>{{Cite news |title=Islami Bank gets special loan of Tk 80 billion |url=https://en.prothomalo.com/business/local/p9jh96f1m2 |access-date=2023-04-16 |work=Prothom Alo |language=en}}</ref> Ahsan H. Mansur, director of ], alleged the government officials were aware of the loans scams at the bank involving S. Alam Group.<ref>{{Cite news |last=Mortoza |first=Golam |date=2022-12-06 |title=Islami Bank’s loan scams were not unknown to policymakers |url=https://www.thedailystar.net/business/economy/news/islami-banks-loan-scams-were-not-unknown-policymakers-3188411 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> ] which has the controlling stake of the bank took 300 billion BDT loans from Islami Bank Bangladesh Limited.<ref name=":0" /> The group had taken the loans violating banking rules of Bangladesh.<ref>{{Cite news |last=Jamal |first=Eresh Omar |date=2022-12-04 |title=Destroying the economy to save the thieves |url=https://www.thedailystar.net/opinion/views/the-overton-window/news/destroying-the-economy-save-the-thieves-3187386 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> Around same time large amount of deposits were withdrawn from the bank feeding into a liquidity shortage.<ref name=":4">{{Cite news |last=Parvez |first=Sohel |date=2023-02-24 |title=Depositors withdraw Tk 11,426cr from Islamic banks in 3 months |url=https://www.thedailystar.net/business/economy/news/depositors-withdraw-tk-11426cr-islamic-banks-3-months-3255956 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> Bangladesh Bank appointed an observer to the bank and began an investigation into irregular loans worth 72.46 billion BDT.<ref>{{Cite news |date=2022-12-12 |title=BB decides to appoint observers at the two Islamic banks |url=https://www.thedailystar.net/business/news/bb-decides-appoint-observers-the-two-islamic-banks-3194356 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref><ref>{{Cite news |last=Uddin |first=AKM Zamir |date=2022-11-29 |title=TK 7,246CR loans to 9 firms: BB probing 'breach of rules' at Islami Bank |url=https://www.thedailystar.net/news/bangladesh/news/tk-7246cr-loans-9-firms-bb-probes-breach-rules-islami-bank-3182046 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> In December, Justices ] and ] of the High Court Division ordered an investigation into the irregular loans at Islami Bank and sought an explanation from S. Alam Group on the 300 billion BDT loan.<ref>{{Cite news |date=2022-12-04 |title=HC orders probe into 'loan scams' in 3 banks |url=https://www.thedailystar.net/news/bangladesh/crime-justice/news/hc-orders-probe-loan-scams-3-banks-3187086 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> On 29 December 2022, Islami Bank Bangladesh Limited took 80 billion BDT in emergency loans from Bangladesh Bank.<ref name=":4" /><ref>{{Cite news |title=Islami Bank gets special loan of Tk 80 billion |url=https://en.prothomalo.com/business/local/p9jh96f1m2 |access-date=2023-04-16 |work=Prothom Alo |language=en}}</ref> Ahsan H. Mansur, Director of Policy Research Institute of Bangladesh, alleged the government officials were aware of the loans scams at the bank involving S. Alam Group.<ref>{{Cite news |last=Mortoza |first=Golam |date=2022-12-06 |title=Islami Bank's loan scams were not unknown to policymakers |url=https://www.thedailystar.net/business/economy/news/islami-banks-loan-scams-were-not-unknown-policymakers-3188411 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref>


In January 2023, ] approved Islami Bank Bangladesh Limited to raise 8 billion BDT through issuing bonds.<ref>{{Cite news |date=2023-01-01 |title=Islami Bank gets nod to raise Tk 800 crore by issuing bonds |url=https://www.thedailystar.net/business/news/islami-bank-gets-nod-raise-tk-800-crore-issuing-bonds-3210176 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> Bangladesh Bank purchased land from Islami Bank near its headquarters for 1.1 billion BDT.<ref>{{Cite news |date=2023-03-16 |title=Bangladesh Bank buys Islami Bank’s land for Tk 110 crore |url=https://www.thedailystar.net/business/news/bangladesh-bank-buys-islami-banks-land-tk-110-crore-3273061 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> In February 2023, ], resigned from the board of directors of Islami Bank Bangladesh Limited after being elected President of Bangladesh, a position he held since 2017.<ref>{{Cite news |date=2023-02-13 |title=President-elect Shahabuddin resigns from Islami Bank’s board |url=https://www.thedailystar.net/business/news/president-elect-shahabuddin-resigns-islami-banks-board-3246921 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> An additional managing director and deputy managing director of the bank resigned within a week of each other in April.<ref>{{Cite news |date=2023-04-05 |title=Another Islami Bank top official resigns |url=https://www.thedailystar.net/business/news/another-islami-bank-top-official-resigns-3289571 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> The bank announced plans to increase confidence of its depositors.<ref>{{Cite news |date=2023-03-30 |title=Islami Bank working to restore depositors’ confidence |url=https://www.thedailystar.net/business/economy/banks/news/islami-bank-working-restore-depositors-confidence-3284181 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> In January 2023, ] approved Islami Bank Bangladesh Limited to raise 8 billion BDT through issuing bonds.<ref>{{Cite news |date=2023-01-01 |title=Islami Bank gets nod to raise Tk 800 crore by issuing bonds |url=https://www.thedailystar.net/business/news/islami-bank-gets-nod-raise-tk-800-crore-issuing-bonds-3210176 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> Bangladesh Bank purchased land from Islami Bank near its headquarters for 1.1 billion BDT.<ref>{{Cite news |date=2023-03-16 |title=Bangladesh Bank buys Islami Bank's land for Tk 110 crore |url=https://www.thedailystar.net/business/news/bangladesh-bank-buys-islami-banks-land-tk-110-crore-3273061 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> In February 2023, ], resigned from the board of directors of Islami Bank Bangladesh Limited after being elected President of Bangladesh, a position he held since 2017.<ref>{{Cite news |date=2023-02-13 |title=President-elect Shahabuddin resigns from Islami Bank's board |url=https://www.thedailystar.net/business/news/president-elect-shahabuddin-resigns-islami-banks-board-3246921 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> An additional managing director and deputy managing director of the bank resigned within a week of each other in April.<ref>{{Cite news |date=2023-04-05 |title=Another Islami Bank top official resigns |url=https://www.thedailystar.net/business/news/another-islami-bank-top-official-resigns-3289571 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref> The bank announced plans to increase confidence of its depositors.<ref>{{Cite news |date=2023-03-30 |title=Islami Bank working to restore depositors' confidence |url=https://www.thedailystar.net/business/economy/banks/news/islami-bank-working-restore-depositors-confidence-3284181 |access-date=2023-04-16 |work=The Daily Star |language=en}}</ref>
Bangladesh Bank report published in its website shows that IBBL has spent by far the highest amount on corporate social responsibility in Bangladesh for the year 2022. Bangladesh Bank report published in its website shows that IBBPLC has spent by far the highest amount on corporate social responsibility in Bangladesh for the year 2022.


== Major shareholders of IBBL == === Current Position of Islami Bank PLC ===
As reported by ''Amardesh'', a leading Bangladeshi daily newspaper, on December 22, 2024, the current business statistics of are as follows:


# '''Total Number of Clients:''' 2,35,00,000
⚫ * ]<ref name="thedailystar">{{cite news|url=http://archive.thedailystar.net/newDesign/news-details.php?nid=187072|title=Islamic banking on a roll|author=Md Fazlur Rahman|newspaper=The Daily Star|access-date=27 September 2013}}</ref> (Islami Bank Bangladesh's biggest institutional investor. Reduced its stake from 7.5% to 2.1% following controversial 2017 government "takeover")<ref name="econom" />
# '''Total Number of Sub-Branches:''' 399
⚫ * Dubai Islami Bank
# '''Total Number of Branches:''' 255
# '''Total Number of Agent Outlets:''' 2,800
# '''Total Number of ATM/CRM Outlets:''' 3,000+
# '''Total Deposits:''' BDT 1,50,000 crore
# '''Remittance Contributions:''' The bank handles the majority of foreign remittance inflows into Bangladesh.
# '''Entrepreneurs Supported:''' 20 lakh entrepreneurs financed by the bank.
# '''Industrial Investments:''' Investments made in over 6,000 industries.
# '''SME Investments:''' Islami Bank is the leading SME financier in Bangladesh.
# '''Microcredit Lending:''' 17 lakh marginal families have received microcredit facilities.
# '''Employment Generation:''' 1 crore jobs created through various initiatives.
# '''Cellfin Account Holders:''' 45,00,000

Additionally, Islami Bank PLC is recognized as the '''highest corporate taxpayer in the banking industry.'''

== Major Shareholders of IBBPLC ==
⚫ * ]<ref name="thedailystar">{{cite news|url=http://archive.thedailystar.net/newDesign/news-details.php?nid=187072|title=Islamic banking on a roll|author=Md Fazlur Rahman|newspaper=The Daily Star|access-date=27 September 2013|archive-date=13 December 2013|archive-url=https://web.archive.org/web/20131213131611/http://archive.thedailystar.net/newDesign/news-details.php?nid=187072|url-status=dead}}</ref> (Islami Bank Bangladesh's biggest institutional investor. Reduced its stake from 7.5% to 2.1% following controversial 2017 government "takeover")<ref name="econom" />
⚫ * ]
* ] * ]
* Luxembourg Islami Bank * Luxembourg Islami Bank
Line 58: Line 79:
63% shared owned by the above shareholders and ] people of Bangladesh are owners of the rest 37 percent shares.<ref name="thedailysun">{{cite news|url=http://www.daily-sun.com/details_yes_21-02-2013_Islami-Bank-guided-by-economics,-not-politics_416_1_3_1_2.html|title=Islami Bank guided by economics, not politics|last=Al Mamun|first=Firoz|date=21 February 2013|newspaper=The Daily Sun|access-date=27 September 2013|archive-url=https://web.archive.org/web/20131212225157/http://www.daily-sun.com/details_yes_21-02-2013_Islami-Bank-guided-by-economics%2C-not-politics_416_1_3_1_2.html|archive-date=12 December 2013|url-status=dead}}</ref> 63% shared owned by the above shareholders and ] people of Bangladesh are owners of the rest 37 percent shares.<ref name="thedailysun">{{cite news|url=http://www.daily-sun.com/details_yes_21-02-2013_Islami-Bank-guided-by-economics,-not-politics_416_1_3_1_2.html|title=Islami Bank guided by economics, not politics|last=Al Mamun|first=Firoz|date=21 February 2013|newspaper=The Daily Sun|access-date=27 September 2013|archive-url=https://web.archive.org/web/20131212225157/http://www.daily-sun.com/details_yes_21-02-2013_Islami-Bank-guided-by-economics%2C-not-politics_416_1_3_1_2.html|archive-date=12 December 2013|url-status=dead}}</ref>


== Awards of IBBL== == Awards of IBBPLC ==
], a reputed US-based quarterly magazine, awarded IBBL as the best bank of Bangladesh for the Year 1999, 2000,<ref name="Banglapedia" /> 2004 and 2005, and the best Islamic financial institution of Bangladesh every year from 2008 to 2013.<ref>{{cite news|url=http://businessnews-bd.com/us-magazine-says-ibbl-best-islamic-financial-institution-in-bangladesh/|title=US magazine says IBBL best Islamic financial institution in Bangladesh|date=16 October 2010|newspaper=Bangladesh Business News|access-date=28 November 2015}}</ref><ref>{{cite journal|date=19 February 2009|title=Best Islamic Finance Institutions – 2008|url=https://www.gfmag.com/awards-rankings/best-banks-and-financial-rankings/the-best-islamic-finance-institutions-2008|journal=Global Finance|access-date=28 November 2015}}</ref><ref>{{cite journal|date=1 June 2009|title=Islamic Financial Institutions Awards – 2009|url=https://www.gfmag.com/awards-rankings/best-banks-and-financial-rankings/islamic-financial-institutions-awards-2009|journal=Global Finance|access-date=28 November 2015}}</ref><ref>{{cite journal|date=1 June 2011|title=Islamic Bank Awards 2011: By Country|url=https://www.gfmag.com/magazine/june-2011/islamic-bank-awards-2011-by-country|journal=Global Finance|access-date=28 November 2015}}</ref><ref>{{cite journal|date=6 June 2012|title=World's Best Islamic Financial Institutions 2012: Country Awards|url=https://www.gfmag.com/magazine/june-2012/worlds-best-islamic-financial-institutions-2012-country-awards|journal=Global Finance|access-date=28 November 2015}}</ref><ref>{{cite journal|date=2 June 2013|title=World's Best Islamic Financial Institutions 2013: Country Winners|url=https://www.gfmag.com/magazine/june-2013/worlds-best-islamic-financial-institutions-2013-country-winners|journal=Global Finance|access-date=28 November 2015}}</ref> ], a reputed US-based quarterly magazine, awarded IBBPLC as the best bank of Bangladesh for the Year 1999, 2000,<ref name="Banglapedia" /> 2004 and 2005, and the best Islamic financial institution of Bangladesh every year from 2008 to 2013.<ref>{{cite news|url=http://businessnews-bd.com/us-magazine-says-ibbl-best-islamic-financial-institution-in-bangladesh/|title=US magazine says IBBPLC best Islamic financial institution in Bangladesh|date=16 October 2010|newspaper=Bangladesh Business News|access-date=28 November 2015|archive-date=8 December 2015|archive-url=https://web.archive.org/web/20151208123519/http://businessnews-bd.com/us-magazine-says-ibbl-best-islamic-financial-institution-in-bangladesh/|url-status=dead}}</ref><ref>{{cite journal|date=19 February 2009|title=Best Islamic Finance Institutions – 2008|url=https://www.gfmag.com/awards-rankings/best-banks-and-financial-rankings/the-best-islamic-finance-institutions-2008|journal=Global Finance|access-date=28 November 2015}}</ref><ref>{{cite journal|date=1 June 2009|title=Islamic Financial Institutions Awards – 2009|url=https://www.gfmag.com/awards-rankings/best-banks-and-financial-rankings/islamic-financial-institutions-awards-2009|journal=Global Finance|access-date=28 November 2015}}</ref><ref>{{cite journal|date=1 June 2011|title=Islamic Bank Awards 2011: By Country|url=https://www.gfmag.com/magazine/june-2011/islamic-bank-awards-2011-by-country|journal=Global Finance|access-date=28 November 2015}}</ref><ref>{{cite journal|date=6 June 2012|title=World's Best Islamic Financial Institutions 2012: Country Awards|url=https://www.gfmag.com/magazine/june-2012/worlds-best-islamic-financial-institutions-2012-country-awards|journal=Global Finance|access-date=28 November 2015}}</ref><ref>{{cite journal|date=2 June 2013|title=World's Best Islamic Financial Institutions 2013: Country Winners|url=https://www.gfmag.com/magazine/june-2013/worlds-best-islamic-financial-institutions-2013-country-winners|journal=Global Finance|access-date=28 November 2015}}</ref>


] has been honored with the by the Ministry of Expatriates' Welfare and Overseas Employment for collecting the highest remittance during the fiscal year 2023-2024. The award was presented to Mohammed Monirul Moula, Managing Director of the bank, by Dr. Asif Nazrul, Advisor to the Ministry of Expatriates' Welfare and Overseas Employment, and Asif Mahmud Shojib Bhuyain, Advisor to the Ministry of Youth and Sports. The ceremony took place at the Osmani Memorial Auditorium on Wednesday, December 18, 2024, in celebration of National Migrants Day and National Expatriates Day 2024.
⚫ == See also about Banks==
⚫ {{Portal|Banks}}


Md. Rafiqul Islam, Deputy Managing Director, along with Mohammad Masud and Mohammed Eyahya, Executive Vice Presidents, and Mohammad Shahadat Ullah, Senior Vice President, attended the event along with other executives and officials of the bank.

⚫ ==See also about Banks==
⚫ {{Portal|Banks}}
* ] * ]
* ] * ]
Line 72: Line 96:


== External links == == External links ==
* *
*
* *
*
*
*


{{Banks in Bangladesh}} {{Banks in Bangladesh}}

Latest revision as of 15:20, 26 December 2024

Bank in Bangladesh PLC
Islami Bank Bangladesh PLC
Logo of Islami Bank Bangladesh PLC
Company typePublic Limited Company
Traded asDSE: ISLAMIBANK
CSE: ISLAMIBANK
IndustryBanking
Financial services
Founded30 March 1983; 41 years ago (1983-03-30)
HeadquartersIslami Bank Tower 40, Dilkusha C/A, Motijheel, Dhaka - 1000, Bangladesh
Area servedBangladesh & overseas
Key peopleMd Obayed Ullah Al Masud (Chairman)
Mohammed Monirul Moula (Managing Director)
Md. Ashraful Haque, FCA (Chief Financial Officer)
J Q M Habibullah, FCS (Company Secretary)
ProductsBanking services, ATM/CRM services, Internet Banking, Payment Gateway, Mobile Banking, Consumer Banking
Corporate Banking
Investment Banking
Foreign Exchange Banking
RevenueIncrease ৳88.74 billion (US$740 million) (2019)
Operating incomeIncrease ৳43.79.74 billion (US$370 million) (2019)
Net incomeDecrease ৳5.48 billion (US$46 million) (2019)
Total assetsIncrease ৳1142.18 billion (US$9.5 billion) (2019)
Total equityIncrease ৳79.80 billion (US$670 million) (2019)
Number of employees21,000
Websiteislamibankbd.com

Islami Bank Bangladesh PLC (IBBPLC) (Bengali: ইসলামী ব্যাংক বাংলাদেশ পিএলসি), more commonly known as Islami Bank, is an Islamic banking company based in Bangladesh. It became incorporated on 13 March 1983 as a public limited company under the Companies Act 1913 and started operation on 30 March, the same year. IBBPLC maintains its own ATM Booths with a country-wide shared ATM network. IBBPLC has been the largest private banking network in Bangladesh. The bank has been listed with both Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd.

History

Bangladesh became a member of the Organisation of Islamic Cooperation (OIC) in February 1974 and signed the charter for Islamic Development Bank in September that year. In April 1978, the 9th conference of OIC foreign ministers recommended for reorganizing the banking system of the member countries to Islamic operations systems gradually. In November 1980, A S M Fakhrul Ahsan, Director (Research) of Bangladesh Bank recommended for commencing Islamic banking operation in Bangladesh. In April 1981, the Ministry of Finance in a letter written to Bangladesh Bank recommended to start separate Islamic banking counters in all branches of the state-owned banks of Bangladesh on an experimental basis and keep separate ledgers for this purpose. In November 1982, a delegation of the Islamic Development Bank visited Dhaka to monitor and evaluate the possibility of a joint venture to establish an Islamic bank in the private sector in Bangladesh and recommended the Islamic Development Bank as an entrepreneur to invest capital in the proposed Islamic bank. As a consequence, Islami Bank Bangladesh Limited, the first shari'ah compliant bank in Bangladesh started operations on 30 March 1983. It was founded by Saudi and Kuwaiti investors who provided 70 per cent of the initial capital. It is a public limited company registered under the Indian Companies Act of 1913. IBBL is a joint venture of the government of Bangladesh, 22 businessmen of Bangladesh, Islamic Development Bank, and investment firms and banks from Muslim Middle Eastern countries.

According to The Economist, "Islami Bank was a pioneer in financing Bangladesh's rise as the apparel industry's main production base outside China."

In 2012, United States Senate Permanent Subcommittee on Investigations mentioned possible ties of Islami Bank Bangladesh Limited to terrorism financing through HSBC Bank which the bank denied. The report questioned the banks link to Al Rajhi Bank. Islami Bank hired Dana Contratto and Associates, a lobbying company, for 25 thousand USD per month to lobby for the bank in Washington DC.

In July 2013, Islami Bank had difficulties getting repayment from Ananda Shipyard & Slipways Limited after the company lost 89.4 million USD foreign orders.

Clients of JP Morgan purchased a three percent stake in the Islami Bank in November 2015.

Change of Ownership

In 2017, the bank had a sudden change in its ownership and management structure. The newly appointed Bank management claimed the bank was trying to stem out its "Jamat-e-Islami roots". This sudden change, however, has led the bank to a financial crisis. The change also saw foreign investors reduce their stake in the bank. As of 2017, Islami Bank Bangladesh commands 90% of Islamic-banking assets and deposits in Bangladesh, is the country's biggest private lender overall, has 12 million depositors and a balance-sheet of $10 billion. After the change, the bank changed their recruitment policy to recruit non-Muslims and more women under newly appointed chairman Arastoo Khan. Arastoo Khan replaced Mustafa Anwar.

From January 2019 to March 2019, the defaulted loans of Islami Bank doubled to 69.16 billion BDT. It also rescheduled 600 defaulted loans through securing special approvals of Bangladesh Bank.

In 2022, many media outlets reported that the bank was giving out loans to suspicious businesses without proper verification. A 24 year old received a 9 billion BDT loan from Islami Bank Bangladesh Limited a month after he established the company, MediGreen. MediGreen had applied for the loan 14 days after registering. Another company, S.S Straight Line, received 9 billion BDT loans within three weeks of being founded. Marts Business, received a 9 billion BDT loan within one month of registration.

S. Alam Group which has the controlling stake of the bank took 300 billion BDT loans from Islami Bank Bangladesh Limited. The group had taken the loans violating banking rules of Bangladesh. Around same time large amount of deposits were withdrawn from the bank feeding into a liquidity shortage. Bangladesh Bank appointed an observer to the bank and began an investigation into irregular loans worth 72.46 billion BDT. In December, Justices Md Nazrul Islam Talukder and Khizir Hayat Lizu of the High Court Division ordered an investigation into the irregular loans at Islami Bank and sought an explanation from S. Alam Group on the 300 billion BDT loan. On 29 December 2022, Islami Bank Bangladesh Limited took 80 billion BDT in emergency loans from Bangladesh Bank. Ahsan H. Mansur, Director of Policy Research Institute of Bangladesh, alleged the government officials were aware of the loans scams at the bank involving S. Alam Group.

In January 2023, Bangladesh Securities and Exchange Commission approved Islami Bank Bangladesh Limited to raise 8 billion BDT through issuing bonds. Bangladesh Bank purchased land from Islami Bank near its headquarters for 1.1 billion BDT. In February 2023, Md Shahabuddin, resigned from the board of directors of Islami Bank Bangladesh Limited after being elected President of Bangladesh, a position he held since 2017. An additional managing director and deputy managing director of the bank resigned within a week of each other in April. The bank announced plans to increase confidence of its depositors. Bangladesh Bank report published in its website shows that IBBPLC has spent by far the highest amount on corporate social responsibility in Bangladesh for the year 2022.

Current Position of Islami Bank PLC

As reported by Amardesh, a leading Bangladeshi daily newspaper, on December 22, 2024, the current business statistics of Islami Bank PLC are as follows:

  1. Total Number of Clients: 2,35,00,000
  2. Total Number of Sub-Branches: 399
  3. Total Number of Branches: 255
  4. Total Number of Agent Outlets: 2,800
  5. Total Number of ATM/CRM Outlets: 3,000+
  6. Total Deposits: BDT 1,50,000 crore
  7. Remittance Contributions: The bank handles the majority of foreign remittance inflows into Bangladesh.
  8. Entrepreneurs Supported: 20 lakh entrepreneurs financed by the bank.
  9. Industrial Investments: Investments made in over 6,000 industries.
  10. SME Investments: Islami Bank is the leading SME financier in Bangladesh.
  11. Microcredit Lending: 17 lakh marginal families have received microcredit facilities.
  12. Employment Generation: 1 crore jobs created through various initiatives.
  13. Cellfin Account Holders: 45,00,000

Additionally, Islami Bank PLC is recognized as the highest corporate taxpayer in the banking industry.

Major Shareholders of IBBPLC

63% shared owned by the above shareholders and 60,000 people of Bangladesh are owners of the rest 37 percent shares.

Awards of IBBPLC

Global Finance, a reputed US-based quarterly magazine, awarded IBBPLC as the best bank of Bangladesh for the Year 1999, 2000, 2004 and 2005, and the best Islamic financial institution of Bangladesh every year from 2008 to 2013.

Islami Bank Bangladesh PLC has been honored with the Remittance Award 2024 by the Ministry of Expatriates' Welfare and Overseas Employment for collecting the highest remittance during the fiscal year 2023-2024. The award was presented to Mohammed Monirul Moula, Managing Director of the bank, by Dr. Asif Nazrul, Advisor to the Ministry of Expatriates' Welfare and Overseas Employment, and Asif Mahmud Shojib Bhuyain, Advisor to the Ministry of Youth and Sports. The ceremony took place at the Osmani Memorial Auditorium on Wednesday, December 18, 2024, in celebration of National Migrants Day and National Expatriates Day 2024.

Md. Rafiqul Islam, Deputy Managing Director, along with Mohammad Masud and Mohammed Eyahya, Executive Vice Presidents, and Mohammad Shahadat Ullah, Senior Vice President, attended the event along with other executives and officials of the bank.

See also about Banks

References

  1. "ইসলামী ব্যাংকের চেয়ারম্যান পদে ওবায়েদ উল্লাহ". Kaler Kantho (in Bengali). 23 August 2024. Retrieved 3 September 2024.
  2. "Independent Auditors' Report to The Shareholders of Islami Bank Bangladesh Limited" (PDF). 31 December 2019. Archived from the original (PDF) on 1 December 2022. Retrieved 21 November 2020.
  3. "Independent Auditors' Report to The Shareholders of Islami Bank Bangladesh Limited" (PDF). 31 December 2019. Archived from the original (PDF) on 1 December 2022. Retrieved 21 November 2020.
  4. "Independent Auditors' Report to The Shareholders of Islami Bank Bangladesh Limited" (PDF). 31 December 2019. Archived from the original (PDF) on 1 December 2022. Retrieved 21 November 2020.
  5. "Independent Auditors' Report to The Shareholders of Islami Bank Bangladesh Limited" (PDF). 31 December 2019. Archived from the original (PDF) on 1 December 2022. Retrieved 21 November 2020.
  6. "Independent Auditors' Report to The Shareholders of Islami Bank Bangladesh Limited" (PDF). 31 December 2019. Archived from the original (PDF) on 1 December 2022. Retrieved 21 November 2020.
  7. ^ "Islamic banking grows in Bangladesh, no thanks to the authorities". The Economist. 2017-08-24. ISSN 0013-0613. Retrieved 2021-03-19.
  8. ^ Mazid, Muhammad Abdul (2012). "Islami Bank Bangladesh Limited". In Islam, Sirajul; Jamal, Ahmed A. (eds.). Banglapedia: National Encyclopedia of Bangladesh (Second ed.). Asiatic Society of Bangladesh.
  9. "About IBBL:Corporate Information". www.islamibankbd.com. Archived from the original on 12 May 2020. Retrieved 27 July 2016.
  10. "Islami Bank Bangladesh Limited". Bangladesh Institute of Bank Management. Retrieved 27 September 2013.
  11. ^ Taiyeb, Faiz Ahmad (2022-12-06). "The rise and fall of Islami Bank". The Daily Star (Opinion). Retrieved 2023-04-16.
  12. "Islami Bank Bangladesh Limited". Banglapedia. Retrieved 10 May 2016.
  13. "US panel exposes governance failure at HSBC". The Daily Star. 2012-07-18. Retrieved 2023-04-16.
  14. "Terror financed due to HSBC failure". The Daily Star. 2012-07-18. Retrieved 2023-04-16.
  15. "SIBL, Islami Bank clarify their positions". The Daily Star. 2012-07-19. Retrieved 2023-04-16.
  16. ^ "HSBC 'helped Islami Bank to fund al-Qaeda'". bdnews24.com. Retrieved 2023-04-16.
  17. Rahman, Sajjadur (2013-09-12). "Islami Bank appoints US consultant to clear its name". The Daily Star. Retrieved 2023-04-16.
  18. Rahman, Sajjadur (2013-07-29). "Islami Bank stung by shipbuilder". The Daily Star. Retrieved 2023-04-16.
  19. Rahman, Sajjadur (2015-11-23). "JP Morgan clients buy into Islami Bank". The Daily Star. Retrieved 2023-04-16.
  20. মালিকানা বদলের পর ১৫ মাসেই ইসলামী ব্যাংক সংকটে. Prothom Alo (in Bengali). 26 April 2018. Retrieved 2023-01-02.
  21. "Islami Bank to hire people of all religions, more women". The Daily Star. 2017-01-12. Retrieved 2023-04-16.
  22. "Major changes in Islami Bank key positions". The Daily Star. 2017-01-06. Retrieved 2023-04-16.
  23. ^ Uddin, AKM Zamir (2019-06-30). "Islami Bank's default loans double in three months". The Daily Star. Retrieved 2023-04-16.
  24. Sakib, Shanaullah. "'Nasty November' for Islami Bank". Prothom Alo. Retrieved 2023-01-02.
  25. ^ "How a 24-year-old greenhorn is 'blessed' with a Tk900cr loan". The Business Standard. 2022-11-27. Retrieved 2023-01-02.
  26. Jamal, Eresh Omar (2022-12-04). "Destroying the economy to save the thieves". The Daily Star. Retrieved 2023-04-16.
  27. ^ Parvez, Sohel (2023-02-24). "Depositors withdraw Tk 11,426cr from Islamic banks in 3 months". The Daily Star. Retrieved 2023-04-16.
  28. "BB decides to appoint observers at the two Islamic banks". The Daily Star. 2022-12-12. Retrieved 2023-04-16.
  29. Uddin, AKM Zamir (2022-11-29). "TK 7,246CR loans to 9 firms: BB probing 'breach of rules' at Islami Bank". The Daily Star. Retrieved 2023-04-16.
  30. "HC orders probe into 'loan scams' in 3 banks". The Daily Star. 2022-12-04. Retrieved 2023-04-16.
  31. "Islami Bank gets special loan of Tk 80 billion". Prothom Alo. Retrieved 2023-04-16.
  32. Mortoza, Golam (2022-12-06). "Islami Bank's loan scams were not unknown to policymakers". The Daily Star. Retrieved 2023-04-16.
  33. "Islami Bank gets nod to raise Tk 800 crore by issuing bonds". The Daily Star. 2023-01-01. Retrieved 2023-04-16.
  34. "Bangladesh Bank buys Islami Bank's land for Tk 110 crore". The Daily Star. 2023-03-16. Retrieved 2023-04-16.
  35. "President-elect Shahabuddin resigns from Islami Bank's board". The Daily Star. 2023-02-13. Retrieved 2023-04-16.
  36. "Another Islami Bank top official resigns". The Daily Star. 2023-04-05. Retrieved 2023-04-16.
  37. "Islami Bank working to restore depositors' confidence". The Daily Star. 2023-03-30. Retrieved 2023-04-16.
  38. Md Fazlur Rahman. "Islamic banking on a roll". The Daily Star. Archived from the original on 13 December 2013. Retrieved 27 September 2013.
  39. Al Mamun, Firoz (21 February 2013). "Islami Bank guided by economics, not politics". The Daily Sun. Archived from the original on 12 December 2013. Retrieved 27 September 2013.
  40. "US magazine says IBBPLC best Islamic financial institution in Bangladesh". Bangladesh Business News. 16 October 2010. Archived from the original on 8 December 2015. Retrieved 28 November 2015.
  41. "Best Islamic Finance Institutions – 2008". Global Finance. 19 February 2009. Retrieved 28 November 2015.
  42. "Islamic Financial Institutions Awards – 2009". Global Finance. 1 June 2009. Retrieved 28 November 2015.
  43. "Islamic Bank Awards 2011: By Country". Global Finance. 1 June 2011. Retrieved 28 November 2015.
  44. "World's Best Islamic Financial Institutions 2012: Country Awards". Global Finance. 6 June 2012. Retrieved 28 November 2015.
  45. "World's Best Islamic Financial Institutions 2013: Country Winners". Global Finance. 2 June 2013. Retrieved 28 November 2015.

External links

List of banks in Bangladesh
Central bank
Commercial
State-owned
Private
Islamic
Foreign
Specialized
Non-scheduled
Portal
Categories: