Report

EXECUTIVE SUMMARY
Islam is not only a religion but also a complete code of life and Islami Banking & finance is an integral part of life of a Muslim. Similarly Shariah Concept and principles are unavoidable code of business operations of the Bank. An Islami Bank is a financial institute whose status, rules and procedures expressly state its commitment to the principles of Islamic Shariah.
The main objectives of the bank are: a) To conduct interest-free banking, b) To establish participatory banking instead of banking on debtor-creditor relationship, c) To invest through different modes permitted under Islamic Shariah, and d) To accept deposits on profit-loss sharing basis. The mission of the bank is to establish Islamic Banking through the introduction of welfare oriented banking system and also ensure equity and justice. The functions of Islami Bank Bangladesh Limited are a) To maintain all types of deposit accounts. b) To make investment. c) To conduct foreign exchange business. d) To extend other banking services.
The special feature of the investment policy of the Bank is to invest on the basis of profit-loss sharing system in accordance with the tenets and principles of Islami Shariah Earning of profit is not the only motive and objective of the Banks investment policy rather emphasis is given in attaining social good and in creating employment opportunities.
There are three types of Investment Modes, these are :I) Bai Mode (Trading) ii) Ijarah Mode (Leasing) and iii) Share Mode. Bai Mode is further divided into four types: 1.Bai Murabaha 2.Bai Muazzal 3.Bai Salam 4.Bai Istishnaa. Ijarah Mode is further divided into two types: 1.Hire purchase (Ijarah) 2.Hire purchase under Shirkatul Melk. Share Mode is further divided into two types: 1. Mudaraba 2. Musharaka.
"Bai-Murabaha may be defined as a contract between a buyer and a seller under which the seller sells certain specific goods (permissible under Islamic Shariah and the Law of the land), to the buyer at a cost plus agreed profit payable in cash
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Investment Schemes of Islami Bank Bangladesh Limited
or on any fixed future date in lump-sum or by go downs. Bai-Muazzal means sale for which payment is made at a future fixed date or within fixed period. In short, it is a sale on Credit. Bai-Salam is a mode of investment allowed by Islamic Shariah in which commodity(ies)/product(s) can be sold without having the said commodity (ies) /product(s) either in existence or physical /constructive possession of the seller. Istisna'a is a contract between a manufacturer/seller and a buyer under which the manufacturer/seller sells specific product(s) after having manufactured, permissible under Islamic Shariah and Law of the Country after having manufactured at an agreed price payable in advance or by go downs within a fixed period or on/within a fixed future date on the basis of the order placed by the buyer. Ijarah has been defined as a contract between two parties, the Hiree and Hirer where the Hirer enjoys or reaps a specific service on benefit against a specified consideration or rent from the asset owned by the Hiree. Hire purchase under Shirkatul Melk is a special type of contract, which has been developed through practice. Actually, it is a synthesis of three contracts: Shirkat, Izara and sale. Shirkat means partnership. Shirkatul Melk means share an ownership. Mudarabah is a form of partnership where one party provides the funds while the other provides the expertise and management. The first party is called the Sahib-Al-Maal and the latter is referred to as the Mudarib. Musharaka is an Islamic financial technique that adopts equity sharing as a means of financing projects. Thus, it embraces different types of profit and loss sharing partnership. The partners (entrepreneurs, bankers) etc. Share both capital and management of a project. The main objectives and principles of investment operations of the Bank are: a) To invest fund strictly in accordance with the principles of Islami Shariah. b) To diversity its investment portfolio by size of investment, by sectors (public and private) by economic purpose, by securities and by geographical area including industrial, commercial & agricultural. c) To ensure mutual benefit both for the Bank and the investment client by professional appraisal of investment proposals.
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Islami Bank Bangladesh Limited, being welfare oriented banking institution has by now designed and implemented Twelve Welfare Investment Schemes keeping in view the needs of different sectors and various sections of people for their socio-economic upliftment. The Welfare investment schemes of IBBL are: a) Household Durable Scheme b) Investment Schemes For Doctors c) Transport Investment Scheme d) Small Business Investment Scheme e) Agricultural Implement Investment Scheme f) Housing Investment Scheme g) Industry Investment Scheme h) Rural Development Scheme i) Car Investment Scheme j) Mirpur Silk Weavers Investment Scheme k) Micro Industries Investment Scheme l) Real Estate Investment Program
Islami Bank Bangladesh limited has both strengths and weaknesses. The major
strength of IBBL is religious feelings of people and major weakness is absence of Islamic money market.
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ACKNOWLEDGEMENT
All praise goes to Almighty Allah who has given me the opportunity to do this report. It is a great pleasure for me to express my sincere appreciation to the Department of Business Administration, Shahjalal University of Science & Technology for giving me the opportunity to do this report. I want to mention the contribution of all those who have inspired, influenced and guided me to complete this report successfully. First of all, I would like to express my heartiest gratitude to my venerable supervisor Mr. Mohammad Imtiaz Ferdous, Assistant professor, Department of Business Administration, Shahjalal University of Science & Technology for his kind and sincere guidance, constructive criticism and personal supervision all through my work. I wish to acknowledge my gratitude to all my respected teachers of Department of Business Administration, for their suggestions and kind cooperation. I am also indebted to authority of Islami Bank Bangladesh Limited to give me chance for internship. Especially I convey my gratitude to Janab Abu Nasser Muhammad Abduz Zaher,Chairman,board of directors,IBBL,Jb.AshequeAhmed Jebal,SVP & FM,IBTRA,Jb. Md. Habibur Rahman,VP &FM, IBTRA,Jb Md. Abdul Matin,VP & FM,IBTRA, Besides this, all the faculty members of IBTRA deserve thanks for their encouragement and whole hearted co-operation . Deep sense of gratitude and profound respect goes to all the staffs of Sylhet branch, IBBL for their magnanimity. I am really indebted to Md. Ashraf Hossain(VP),Md.Anwar Hossain(AVP),Md.Saiful Islam(Senior officier), Md.Nurul Amin(Senior officer),Kazi Md. Nurul Islam(Principal officer) for their kind cooperation in all aspects. Finally, I would like to extend my cordial compliments to my parents, friends and well-wishers for their inspiration and support throughout this report.
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CHAPTER 1: INTRODUCTION
1.1Origin of the Report
This report is based on an internship program. School of Management & Business Administration, Shahjalal University of Science & Technology arranges internship program in attachment with its students after the completion of theoretical courses (i.e., after final semester) of program of Bachelor of Business Administration (BBA). Each intern must carry out a specific project, which is assigned by the concerned organization and approved by the Internship and placement committee of School of Management & Business Administration. Consequently a report based on the project is to be submitted to the committee. In this particular report, the author is an intern of the previously mentioned program and the concerned organization is IBBL, which are a prominent private and the first Bank of Bangladesh that based on Islamic law. Hence, I was placed in the Sylhet Branch of Islami Bank Bangladesh Limited from July 31, 2007 to September 20, 2007.In way of delegation; responsibility of carrying out the study has conferred upon the concerned intern.
1.2 Background of the study

Banking is one of the most important sectors for a countrys wealth building activities. At present the modern business industrialization, foreign trade, and investment depend on banks. But now a day the Banking sector of Bangladesh is suffering the disease of default culture, which is consequence or result of bad performance of most of the banks in Bangladesh. IBBL plays an important role towards the growth and economic development of Bangladesh. This study is an attempt to produce a constructive report performance with special reference to the Welfare investment Schemes, modes, procedures and products of Islami Bank Bangladesh Limited.
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1.3 Objective of the study:

The main objective of education is to acquire knowledge. To acquired knowledge ultimately I must do some practical application in addition to theoretical knowledge. The secondary objectives of the reports are: To find out the Investment Policy of IBBL as well as its pros and cons. To evaluate the Investment Modes of IBBL and its effectiveness. To evaluate Different investment Schemes of IBBL. To find out problems and possible remedies of IBBL.
1.4 Scope of the study

This study makes attempt to cover within its scope almost all the significant aspects of Welfare investment schemes of Islami Bank Bangladesh Limited.
1.5 Methodology:
Mainly I have collected data from two sources.
These two sources are as following: Primary source Secondary source
The primary sources of my information are as below: Direct observation Investment Outlook Questioning the concerned persons.
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The secondary sources of my information are as below: 1. 2. 3. 4. Web Site of IBBL. Different reference books of the library. Annual report of IBBL Other manual information.
5. Desk report of the related department.
1.6 Limitations of the study:

There are some limitations in my study. I faced some problems during the study which is mentioned below i) Lack of time: The time period of this study is very short. I had only 5 weeks in my hand to complete this report, which was not enough. So I could not go in depth of the study. Sometimes the officials were busy and were busy and were not able to give me much time. ii) Insufficient data: Some desired information could not be collected due to confidentially of business. iii) Lack of monitory support: Few officers sometime felt disturbed, as they were busy in their job. Sometime they didnt want to supervise me out of their official work. iv) Other limitation: As I am newcomer, there is a lack of previous experience in this concern. And many practical matters have been written from my own observation that may vary from person to person.
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CHAPTER 2: AN OVERVIEW OF IBBL
2.1 Introduction
Islam is not only a religion but also a complete code of life and Islami Banking & finance is an integral part of life of a Muslim. Similarly Shariah Concept and principles are unavoidable code of business operations of the Bank. An Islami Bank is a financial institute whose status, rules and procedures expressly state its commitment to the principles of Islamic Shariah and to the banning of the receipt and payment of interest on any of its operation. Islamic bank is essentially a normative concept and could be defined as conduct of banking in consonance with the ethos of value system of Islam. The principle sources of Islamic Banking are Quran and Hadith. Islamic banking is systems of financial intermediation that avoids receipt and payment of interest in its transactions and conducts its operations in a way that it helps achieve the objectives of an Islamic economy. Alternatively, this is a banking system whose operation is based on Islamic principles of transactions of which profit and loss sharing (PLS) is a major feature, ensuring justice and equity in the economy. That is why Islamic banks are often known as PLS-banks.
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2.2 The relationship between Banking system and Islam.1
ISLAM
AQIDAH
SHARIAH
AKHLAQ
IBADAT
MUAMALAT
POLITICAL ACTIVITIES
ECONOMIC ACTIVITIES
SOCIAL ACTIVITIES
BANKING &FINANCIAL ACTIVITIES
Fig: The Relation Ship between Banking System and Islam.
Source: Arif, M (1982).
Arif, M.1982 9
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2.3 Review of literature

By studying the book Allocative Efficiency, Decision and Welfare in an Interest-Free Islamic Economy: A Comparative Policy Approach written by Mannan, M. A. (1982), I came to know about how resources of a nation can be efficiently allocated in interest free economy. By studying the book Monetary and Fiscal Economics of Islam written by M. Arif, I know about various investment strategies that effect monetary and fiscal policy in Islamic economy. By reviewing the book Islamic Interest-Free Banking written by Mohsin S. Khan (1995), I understand about the difference between conventional banking and interest free banking. Rushdi, A. A. (1988) in his book The Effects of Elimination of Riba on Income Distribution shed light on how interests adversely effect the equal distribution of income in the society. Siddiqi, M. N. (1983) in his book Economics of Profit-Sharing describes about the macroeconomic and microeconomic aspects as well as how investment in various sectors can be generated and mobilized in an efficient way in profit sharing economy. 2.4 History of Islamic Bank In the late seventies and early eighties, Muslims countries were awoken by the emergence of Islami bank which provided interest free banking facilities. There are more than 300 interests free institutions all over the world.Islami bank now a day not only operate in all most all Muslims countries but have extended their wings to the western world to serve both Muslims and non Muslims countries. In case of Islami Banking, The establishment of mitghamar local savings Bank in 1963 is said to be a mile stone for modern Islami Banking. The history of Islami Banking can nevertheless be traced back to the birth of Islam.
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2.5 Definition of an Islamic Bank

An Islami Bank is a financial institution that operates with the objective to implement and materialize the economic and financial principles of Islam in the banking arena. The Organization of Islamic Conference (OIC) defined an Islamic Bank as A financial institution whose statutes, rules and procedures expressly state its commitment to the principles of Islamic Shariah and to the banning of the receipt and payment of interest on any of its operation.2 According to Islamic Banking act 1983 of Malaysia An Islamic Bank is a company which carrying on Islamic Banking business whose aims and operations do not involve any element which is not approved by the religion of Islam3
2.6 Differences between CONVENTIONAL BANK AND ISLAMIC BANK4
Conventional Bank
Collection of deposit on the basis of interest. Extending credit on basis of interest. Creating medium of exchange and credit. Investment in share and securities. Discounting of Bill.
Islamic Bank
Collection of deposit on the basis of Profit sharing. Investment following Bai mode/ Share mode/Lease mode. Acting against creation of medium of exchange and credit. Investment in share and Mudaraba bond. No discounting of Bill.
Fig: Difference between Conventional Bank and Islamic Bank. Source: Akkas S.M.A (1985).
2 3
OIC definition of Islamic Banking. Islami Banking act 1983 of Malaysia. 4 Akkas, S.M.A 1985. 11 Welfare
2.7 Difference between Riba (Interest) and Profit.

2.7.1 Riba (Interest) : Dictionary Meaning of Riba is Increase, Excess and Additional etc. Technical meaning of Riba is Interest/Usury/Sud etc.
2.7.2 Riba in the Holy Quran:5

1st Revelation: Suratur Rum: Ayat 39 And whatever Riba you give so that it may increase in the wealth of the people, it does not increase with Allah: but that which you give in Zakat seeking Allahs. Countenance, then those they has manifold increase. 2nd Revelation: Suratun Nisa: Ayat 161 And they took Riba, though they were forbidden; and that they devoured mens substance wrongfully we have prepared for the disbelievers among them a grievous punishment. 3rd Revelation: Surah Ale Imran: Ayat 130 O you who believe! Eat not Riba doubled and multiplied; but fear Allah that you may (really) prosper. 4th Revelation: Suratul Baqarah: Ayat 275-281: Those who eat Riba will not stand except like the standing of the person whom the Shaitan by his touch has driven to madness/insanity. That is because they say Bai is Like Riba,but Allah has permitted Bai and forbidden Riba.Hence whosoever receives this admonition from lord and stop eating Riba may keep his previous gain; his case is for Allah (to judge).But whoever reverts to it, they are the companions of the fire, they shall abid therein(forever). 2.7.3 Why Riba is prohibited: Today Interest has affected not only the debtor and creditor, but also the economic, social and political life of human being at large. The Impacts of Riba are as following: 1. Riba decrease savings. It restricts investment, production and increase unemployment. Because people have to pay additional money of interest, if it were not people could
Khan W.M.1980. 12
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invest money another production sectors that will increase Savings and employment opportunity. 2. It create Injustice and enhances difference between have and have-nots. 3. Riba creates inflation, fluctuation and volatility. 4. Riba leads to destruction. For this reasons, from the Islamic Shariah point of view, Riba is Harram. 2.7.4 Profit: Profit emanates from investment and investment is not possible without Bai.Investment means to buy goods and services with a view to earn profit with risk of loss. When this goods and services are sold again, money comes back. This cyclic process may express as follows: Transformation of Money into goods with risk of loss, Again Transformation of goods into Money. 6 2.7.5 Why Profit is Permissible: Profit is the result of ownership transaction and risk following the fours stages: Transformation through Bai /Buying Selling of goods. Risk of Transformation and Ownership. Other Condition of Shariah. Result-Profit on loss.
Profit is the difference between the value of production and the cost of production, which is Halal according to Islami Shariah.So profit is Permissible in Islamic Shariah.
2.8 Shariah Council of the Bank

There is a Shariah Council of the Bank that consists of prominent Ulema, reputed Bankers, renowned Lawyers and eminent Economists to advise and guide on the implementation and compliance of Shariah principles in all the activities of the Bank particularly on the modes of investments. The Council enjoys a special status in the structure of the bank that meets frequently and plays a vital role. It also conducts Shariah inspection of Branches to ensure that the Shariah principles are implemented and complied with by the Branches of the Bank.
6 Khan, W.M 1980. 13 Welfare
2.9 Misconceptions about Islamic Banking:7

Misconception that, Islami Bank takes interest indirectly. Misconception about Percentage (%) and Fixed Rate. Misconception about that, Islami Bank offer profit to Shareholders at Fixed Rate. Misconception about that, Islami Bank takes profit at Fixed Rate from clients like others conventional Banks. Misconception about that, Islami Bank always offers profit to its depositor like others conventional Banks. Misconception about that, Islami Bank does not bear Profit and Loss. Misconception about that, Islami Bank does not impose similar profit for Various Products. Misconception about that, Islami Bank Imposed compensation on Bankrupt. Misconception about that, Islami Bank transaction with Bangladesh Bank as like as other conventional bank. Misconception about that, Islami Bank transacted with Foreign Bank with Interest.
2.10 Back Ground and Status of IBBL

Islami Bank Bangladesh Ltd. (IBBL) was incorporated on march 13, 1983 under the companies Act.1983 as the first interest fee shariah based commercial bank in SouthEast Asia.IBBL started functioning on march 30, 1983 and formally inaugurated on August 12, 1983.The bank was promoted by 23 local sponsors including the government of Bangladesh and 4 local institutions and 13 foreign sponsors including Islamic Development Bank and 10 other foreign institutions. The bank went for public offering in november,1985.The got enlistment with Dhaka Stock exchange limited in 1985 and with chittagong stock exchange limited in 1996.IBBL has been declared as one of the 20 blue chip companies by DSE and as one of the 30 best companies by CSE.
Hassan, M.Kabir.1987. 14
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The bank has grown significantly over the last 24 years of its operation. The initial paid up capital of the bank was TK.67.50 million and subsequently raised capital through IPO, right and bonus shares. The bank regularly declare dividend to its shareholders. As on 3112-2006 the paid up capital of the bank was TK.3456.00million.IBBL provides a wide range of Islamic Banking Services. The major portion of investment portfolio of IBBL is towards corporate while the rest is towards retail investments.
2.11 Corporate Information: 31.12.2006

Islami Bank Bangladesh Limited at a glance: 1. Date of incorporation 2. Date of receiving Banding license 3. Date of incorporation of first branch (Local office Dhaka) 4. Formal inauguration 5. Zone 6. Authorized capital 7. Share of capital : a) Local-share holders b) Foreign share holders 8. Paid -up capital 9. Equity (31.12.2006) 10. Branches 11. Reserve 12. Investment 13. Foreign Exchange 14. Number of employee 15. Shareholder 16. Deposits: 17. Import 18. Export 19. Remittance : 13.03.83 : 28.03.83 : 30.03.83. : 12.08.83 :6 3000 million : 42.12% : 57.88 % : 3456 million : 10,436 million : 180 : 10,007 million : 113,575 million : 8464300 million : 3911 : 14563 :132,419.00million : 57237.00 million : 30738.00 million : 21668.00 million
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2.12 Scope of Business

IBBL was licensed as a scheduled bank. It provides services to all types of customers ranging from small and medium enterprises to large business organizations. It is working for the well fare of the country and the people.
2.13 Nature of Business

The Islami Bank Bangladesh Limited is pioneer in introducing Shariah based interest free utiliz banking in Bangladesh with a mission to establish welfare oriented banking system and to ensure equity and justice in the field of all economic activities. All of its activities are directed on principles of Islamic Shariah.There is Shariah council, which is entrusted with the responsibility for ensuring that the activities of the bank are being conducted on the precepts of Islam.IBBL is one of the leading first generation private sector banks in Bangladesh, which provides all kinds of commercial banking service.
2.14 Principle Products or Services

Islami Bank Bangladesh Ltd. offers all types of commercial banking services based on Islamic Shariah.Main products of the banks are as follows:
2.14.1 Deposit Products:

Al-Wadiah Current Account. Mudaraba Hajj Savings Account. Mudaraba Waqf Cash Deposit Account. Mudaraba Special Savings (Pension) Account. Mudaraba Mohor Savings Account. Mudaraba Savings Bond. Mudaraba Monthly Profit Deposits Account. Mudaraba Term Deposits Account. Mudaraba Savings Deposits Account. Mudaraba Special Notice Deposits Account. Mudaraba Foreign Currency Deposits Account etc.
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2.14.2 Investment Products:

Bai-Murabaha Bai Muazzal Bai Salam Hire Purchase Hire Purchase under Shirkatul Melk Musharaka Mudaraba
2.14.3 Foreign Exchange:

Export Import Remittance
2.14.4 Others:
Issuance of T.T, D.D, P.O Locker Service Bankers to the Issue etc.
2.15 Objectives of IBBL:

The core objective of the bank is to conduct interest-free banking and to offer contemporary financial services in confirmations with Islamic Shariah. Other objectives are: To establish participatory banking instead of banking on debtor-creditor relationship. To invest through different modes permitted under Islamic Shariah. To accept deposits on profit-loss sharing basis. To establish a welfare-oriented banking system. To extend co-operation to the poor, the helpless and the low-income group for their economic development. To play a vital role in human development and employment generation. To contribute towards balanced growth and development of the country through investment operations particularly in the less developed areas.
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2.16 Mission of IBBL

To established Islamic Banking through the introduction of welfare oriented banking system and also ensure equity and justice in the field of all economic activities, Achieve balanced growth and equitable development through diversified investment operations particularly in the priority sectors and less development areas of the county.
To encourage socio-economic development and financial services to the lowincome community particularly in the rural areas.
2.17 Vision of IBBL

The vision of IBBL is to always strive to achieve superior financial performance, be considered a leading Islamic Bank by reputation and performance. To establish and maintain the modern banking techniques, to ensure the soundness and development of the financial system based on Islamic principles and to become the strong and efficient organization with highly motivated professionals, working for the benefit of people, based upon accountability, transparency and integrity in order to ensure stability of financial system. Try to encourage savings in the form of direct investment Try to encourage investment particularly in projects, which are more likely to lead to higher employment.
2.18 Functions of IBBL

According to Bangladesh Bank The bank will operate within the framework of the existing banking laws, rules and regulations subject to such minor adjustments that may be considered for an Islamic Bank to function8 The functions of Islami Bank Bangladesh Limited are as under a) To maintain all types of deposit accounts. b) To make investment. c) To conduct foreign exchange business. d) To extend other banking services.
8 Bangladesh Bank act about function of commercial Bank. 18 Welfare
2.19 Business Philosophy of IBBL

The philosophy of IBBL is to the principles of Islamic Shariah. The Organization of Islamic conference (OIC) defines an Islamic bank as "a financial institution whose status, rules and procedures expressly state its commitment to the principles of Islamic Shariah and to the banking of the receipt and payment of interest on any of its operations. The sponsor, perception is that IBBL should be quite different from other privately owned and managed commercial bank operating in Bangladesh, IBBL to grow as a leader in the industry rather than a follower.
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CHAPTER 3: INVESTMENT POLICY

3.1 Introduction
Investment operation of a Bank is vital importance the greatest share of total revenue is generated from it, maximum risk is centered in it and the very existence of a Bank mostly depends on prudent management of its Investment Port-folio. As such, for efficient deployment of mobilized resources in profitable, safe and liquid investments, a sound, well-defined, well-planned and appropriate Investment Policy framework is necessary prerequisite for achieving the goal of the Bank. The special feature of the investment policy of the Bank is to invest on the basis of profit-loss sharing system in accordance with the tenets and principles of Islamic Shariah Earning of profit is not the only motive and objective of the Banks investment policy rather emphasis is given in attaining social good and in creating employment opportunities. Pursuant to the Investment Policy
adopted by the Bank a 7-year Perspective Investment Plan has been drawn-up for the year 1995 to 2002 and put into implementation. Recently a further 5-year perspective investment plan has been drawn up for the year 2003 to 2007 and put into implementation.
3.2 Objectives and Principles

The objectives and principles of investment operations of the Bank are: To invest fund strictly in accordance with the principles of Islami Shariah. To diversity its investment portfolio by size of investment, by sectors (public and private) by economic purpose, by securities and by geographical area including industrial, commercial & agricultural. To ensure mutual benefit both for the Bank and the investment client.
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To make investment keeping the socio- economic requirement of the country in view. To increase the number of potential investors by making participatory and productive investment. To finance various development schemes for poverty alleviation, income and employment generation with a view to accelerate sustainable socio-economic growth and for upliftment of the society. To invest in the form of goods and commodities rather than give out cash money to the investment clients. To encourage social upliftment enterprises. To shun even highly profitable investment in fields forbidden under Islamic Shariah and are harmful for the society. The Bank extends investments under the principles of Bai-Murabaha, BaiMuazzal, Hire Purchase under Shirkatul Melk and Mudaraba. The Bank is making sincere efforts to go for investment under Mudaraba principle in near future.
3.3 Importance of Assessing of Investment Needs:

Assessment of Investment needs is necessary for the following reasons: a) To detect actual Investment limit of Bank. b) To detect actual Investment against obsolete /out dated/non trading items. c) To assess the quality, quantity, price and marketability of the commodities d) To ensure proper follow-up supervision and monitoring of the Investment. e) To ensure capacity of the client in handling Investment activities. f) To over come the situation of Division of found by the clients g) To ensure trading instead of lending of money.
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h) To ensure payment against delivery of goods. i) To ensure actual buying and selling of goods. j) To select proper & genuine Investment client. k) To ensure viability/profitability of the project. l) To ensure compliance of Shariah Principles. m) To maintain discipline in the Investment port-folio of the Branch. n) To secure the Investment. o) To allow Investment for appropriate period. p) To handle the Investment proposal efficiently. q) To ensure investment for productive purpose.
3.4 Induction of Investment Clients

3.4.1 Why of Induction Potential clients may be advised to open Al-Wadiah Current Account, if there is no such account. The client should maintain the current account, satisfactorily for a reasonable period. a. Preliminary discussion may have with the prospective client regarding his line of business, experience & investment needs. b. The past performance of the client to be studied and Branchs track record of proposed investment. c. If the proposal found suitable the client may be asked to submit a formal application along with necessary papers/documents.
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3.4.2 Criteria for selection Clients of the Bank for following Investment are to be selected with prudence and good judgment. It should be kept in mind that the person are important than their properties. A detailed credit report of the client must be prepared and all necessary informations should be collected and verified at the time of selection of the client. Clients of distant area/beyond control should not be entertained.
The following factors/qualities /information may be considered at the time of selection of investment client.
a) Brief history of financial /credit transaction of the client. b) Social and financial behavior of the client should be verified /assessed. c) Ability of the client of utilization of credit / Investment fund. d) Ability of the client regarding repayment of Investment. e) Equity of the client. f) Effect of National & International Economic problems/crisis.
The above mentioned factors may be categorized under 5-Cs. Character Capacity Capital Collateral Condition
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3.6 The 5-year perspective investment plan from 2003-2007

In accordance with the investment Policy, 5 year Perspective Plan from 2003 to 2007 is formulated. Deposit target of the Banks on September 30, 2002 plus 10% has been taken as base and 90% of the year-wise estimated deposits have been as invest able fund. Sizewise, sector-wise, geographical area-wise, economic purpose-wise, security-wise allocation of estimated invest able funds is made in accordance with the weight age given in the Investment. The distribution of investments by size of accounts (in million tk.) is shown in table 3(annex).In table 3 we see that the bank plans to invest heavily in large size of accounts. The bank desires to invest 40% of total investable fund in account of 5 million or above and 20% in account size of upto .5 million. In table 4 of annex we see that IBBL formulate strategy to invest only 5% in public sector and 95% in private sector in all the years. The bank desires to invest heavily in private sector because private sector is more efficient, more effective and more productive than public sector. Distribution of investments by areas (urban & rural) is shown in table 5 of annex in million tk.In table 6 we see that the emphasizes more to invest in urban area than rural area. But it is evident from the table that the bank wants to gradually reduce investment in urban area and increase investment in rural area. At every year from 2003-2007 the bank planned to increase 1% investment in rural area and decrease 1% investment in urban area. In 2003 the bank planned to invest 94% in urban area and 6% in rural area but in 2007 the bank planned to invest 90% in urban area but 10% in rural area.
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CHAPTER 4: MODES OF INVESTMENT
There are three types of Investment Mode which are: Bai Mode (Trading): 1. Bai Murabaha. 2. Bai Muazzal. 3. Bai Salam. 4. Bai Istishnaa. Ijarah Mode (Leasing): 1. Hire purchase (Ijarah). 2. Hire purchase under Shirkatul Melk. Share Mode: 1. Mudaraba. 2. Musharakah.
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4.1 Bai Mode (Trading)

4.1.1 Bai -Murabaha
Meaning:
The terms Bai-Murabaha have been derived from Arabic words Bai and Ribhun. The word bai means purchase and sale and the word Ribhun means an agreed upon profit. Bai-Murabaha means sale on agreed upon profit.
Definition:
Bai-Murabaha may be defined as a contract between a buyer and a seller under which the seller sells certain specific goods, to the buyer at a cost plus agreed profit payable in cash or on any fixed future date in lump-sum or by go downs. The profit marked-up may be fixed in lump-sum or in percentage of the cost price of the goods.
Types
of Murabaha
In respect of dealing parties Bai-Murabaha may be of two types.
Ordinary Bai-Murabaha: If there are only two parties, the seller and the buyer, where the seller as an ordinary trader purchases the goods from the market without depending on any order and promise to buy the same from him and sells those to a buyer for cost plus profit, then the sale is called Ordinary Bai-Murabaha.
Bai-Murabaha on Order and Promise: If there are three parties, the buyer, the seller and the Bank as an intermediary trader between the buyer and the seller, where the Bank upon receipt order from the buyer with specification and a prior outstanding promise to buy the goods from the Bank, purchases the ordered goods and sells those to the ordering buyer at a cost plus agreed profit, the sale is called Bai-Murabaha on Order or Promise.
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Important
features: It is permissible for the Client to offer an order to purchase by the Bank agriculture goods deciding its specification and committing him to buy the same from the Bank on Murabaha, i.e. cost plus agreed upon profit.
It is permissible to make the promise binding upon the Client to purchase from the Bank.
It is permissible to take cash/collateral security to guarantee the implementation of the promise or to indemnify the damages.
Stock and availability of goods is a basic condition for signing a BaiMurabaha Agreement.
Categorization: Categorize the proposal as under: Bai-Murabaha Commercial Bai-Murabaha Industrial Bai-Murabaha Agriculture Bai-Murabaha Import
4.1.2 Bai Muazzal

Meaning:
The terms Bai and Muazzal have been derived from Arabic words Biam and Muraba. The word Bai means purchase and sale and the word Muazzal means a fixed time. Bai-Muazzal means sale for which payment is made within fixed period. In short, it is a sale on Credit.
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Definition:
Bai-Muazzal may be defined as a contract between a buyer and a seller under which the seller sells certain specific goods , to the buyer at a cost plus agreed profit payable in cash or on any fixed future date in lump-sum or by go downs. Categorization: Categorize the proposal as under Bai-Muazzal Commercial. Bai-Muazzal Industrial. Bai-Murabaha Agriculture. Bai-Muazzal Import. Features: Bank is not bound to declare cost of goods and profit mark-up separately to the client. Spot delivery of the item and payment is deferred. Ownership and possession of the goods is transferred by the Bank to the client before receipt of sale price. It is permissible to make the promise binding upon the client to purchase from the Bank. Mortgagee/Guarantee/Cash Security may be obtained before /at the time of signing the agreement. Stock and availability of goods is a pre-condition for Bai-Muazzal agreement. The bank must deliver the specified goods to the client on specified date and at specified place of delivery as per contract.
Important
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4.1.3 Bai- Salam

This term refers to Advance Payment for Goods which are to be delivered later. BaiSalam contract will be executed after making any investment showing price, quality, quantity, time, place and mode of delivery. The profit is to be negotiated. It this mode the payment as the price of the goods is made at the time of Agreement and the delivery of the goods is deferred. Important Features: Bai-Salam is a mode of investment allowed by Islamic Shariah in which commodity(ies)/product(s) can be sold without having the said commodity (ies) /product(s) either in existence or physical /constructive possession of the seller. If the commodity (ies)/product(s) are ready for sale, Bai- Salam is not allowed in Shariah. T Generally, industrial and agricultural products are purchased/sold in advance under Bai-Salam mode of investment. It is permissible to obtain collateral security from the seller client to secure the investment from any hazards viz. supply of low quality commodity (ies) /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 Bai-Salam on a particular commodity (ies)/product(S) or on a product of a particular field or firm cannot be affected (for Agricultural Product(s) only).
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4.1.4 Istisnaa
Istisna'a is a contract between a manufacturer/seller and a buyer under which the manufacturer/seller sells specific product(s) after having manufactured, permissible under Islamic Shariah and Law of the Country after haying manufactured at an agreed price payable in advance or by go downs within a fixed period or on/within a fixed future date on the basis of the order placed by the buyer. Important Features: Istisnaa is an exceptional mode of investment allowed by Islamic Shariah in which product(s) can be sold without having the same in existence. If the product(s) are ready for sale that is not allowed by Istisna. 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 dates or by go downs.
4.2 Ijarah Mode (Leasing)
4.2.1 Hire Purchase /Ijarah

The term Ijarah has been derived from the Arabic works Ajr and Ujrat which means consideration, return, wages or rent. This is really the exchange value or consideration, return, wages, rent of service of an Asset. Ijarah has been defined as a contract between two parties, the Hiree and Hirer where the Hirer enjoys or reaps a specific service or benefit against a specified consideration or rent from the asset owned by the Hiree. It is a hire agreement under which a certain asset is hired out by the Hiree to a Hirer against fixed rent or rentals for a specified period.
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4.2.2 Hire Purchase under Shirkatul Melk

Hire purchase under Shirkatul Melk is a special type of contract which has been developed through practice. Actually, it is a synthesis of three contracts: Shirkat, Izara and sale. Shirkat means partnership. Shirkatul Melk means share an ownership. When two or more persons supply equity, purchase an asset, own the same jointly, and share the benefit as per agreement and bear the loss in proportion to their respective equity, the contract is called Shirkatul contract.
Stages of Hire Purchase under Shirkatul Melk
Thus Hire Purchase under Shirkatul Melk Agreement has got three stages: Purchase under joint ownership. Hire and Sale and /or transfer of ownership to the other partner Hirer Important Features: In case of HPSM transaction the asset / property involved is jointly purchased by the Hire (Bank) and the Hirer (Client) with specified equity participation under a Shirkatul Melk Contract in which the amount of equity and share in ownership of the asset of each partner are clearly mentioned. In HPSM Agreement, the exact ownership of both the Hire (Bank) and Hirer (Client) must be recognized. No third party registration shall be allowed. As the ownership of hired portion of the asset lies with the Hire (Bank) and rent is paid by the Hirer (Client) against the specific benefit, the rent is not considered as price or part of price of the asset. In the HPSM Agreement the Hire (Bank) does not sell or the Hirer (Client) does not purchase the asset but the Hire (Bank) promise to sell asset to the Hirer (Client) part by part only.
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The promise to transfer legal by the Hire undertakings given by the Hirer to purchase ownership of the hired asset upon payment part by part as per stipulations are effected only when it is actually done by a separate sale contract.
4.3 Share Mode

4.3.1 Mudarabah
It is a form of partnership where one party provides the funds while the other provides the expertise and management. The first party is called the Sahib-Al-Maal and the latter is referred to as the Mudarib. Any profits accrued are shared between the two parties on a pre-agreed basis, while capital loss is exclusively borne by the partner providing the capital.
Important features:
Bank supplies capital as Sahib-Al-Mall and the client invest if in the business with his experience.
Administration and management is maintained by the client. Profit is divided as per management. Shahib-Al-Maal (Bank) bears the loss alone. Client can not take another investment for that specific business without the permission of the Bank
4.3.2 Musharaka
An Islamic financial technique that adopts equity sharing as a means of financing projects. Thus, it embraces different types of profit and loss sharing partnership, where loss is shared according to ratios of their equity participation.
Important features: The investment client will normally run and manage the business. The Bank shall take part in the policy and decision making as well as overseeing (supervision and monitoring) the operations of the business of the client.
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As the investment client shall manage the enterprise, the Bank may pay more share of profit to him than that of his proportionate capital contribution.
Loss, if any, shall be shared on the basis of capital ratio
4.4 Two other modes of investment which have limited impact
4.4.1 Quard
Quard is given to the accountholders of Mudaraba Term Deposit Receipt A/C and Mudaraba Savings Bond A/C by lining these accounts.
Purpose of Quard: To meet emergency needing /necessities of the accountholder.
4.4.2 Quard-E-Hasana
Quard-E-Hasana is given to the staffs against President Fund, Benevolent Fund and other people for general purpose.
Purpose of Quard-E-Hasana: Meet emergency and general needing /necessities To meet general purpose.
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CHAPTER 5: WELFARE INVESTMENT SCHEMES OF ISLAMI BANK BANGLADESH LIMITED
Islami Bank Bangladesh Limited (IBBL) offer Twelve Welfare Investment Schemes for the Welfare of population of Bangladesh. The Welfare Investment Schemes of IBBL are as Follows: Household Durable Scheme. Investment Scheme for Doctors. Small Business Investment Scheme. Housing Investment Scheme. Transport Investment Scheme. Car Investment Scheme. Rural Development Scheme (RDS). Agriculture Implement Investment Scheme Micro Industries Investment Scheme. Mirpur Silk Weavers Investment Scheme. Industry Investment Scheme. Investment on Real Estate.
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5.1 HOUSEHOLD DURABLE SCHEME

In a developing country like Bangladesh people of middle and lower middle class especially service holders with limited income find it difficult to purchase articles, which are part of modern and decent living. They cannot enhance the standard and quality of life to the desired level due to the constrain of their limited income. Islami Bank
Bangladesh Limited has, therefore, introduced Household Durables Investment Scheme that has already created great enthusiasm among the people and received tremendous response from them. 5.1.1Objectives: To assist the service holders with limited income in purchasing household durables. Increase standard of living and quality of life of the fixed income group. Creating service-holders way of life happy and honest. 5.1.2 Household articles: Furniture like Almirah, Sofa set, wardrobe, etc. Electric & electrical equipment like television, refrigerator, gas cooker, air conditioner, PC, washing machine, electric generator IPS, UPS, etc. Construction of dwelling house like corrugated iron sheet, cement, rod, wood etc. Motor cycle/By-cycle, Sewing machine etc. Power generator, motor pump/power pump etc. Gold ornaments Tube-wells. 5.1.3 Beneficiaries: Interested permanent officials of the following organizations may apply for investment: (a) Government /Semi-Government Organizations and Autonomous Bodies. (c) Banks and Financial Institutions
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(d) Armed Forces, BDR, Police and Ansars. (e) Teachers of Universities, Government Colleges and Schools. (f) Officers of International Financial & Relief Organization. (g) Officers of the multinational companies. (h) Officer of the local established and renowned public limited companies. (i) Permanent Teachers & Officers of established & prominent Private Universities, Medical Colleges & University Colleges. Doctors, Engineers, Architects, Chartered Accountants/FCMA and other important professionals. Investment and deposit Client of IBBL. Shopkeepers and businessman. 5.1.4 Amount: For doctors, Engineers, Architects, Chartered Accountants, FCMAs the Ceiling of the investment of the Bank will be a. Dhaka City: Maximum Tk. 3, 00,000.00 b. Other Metropolitan Cities: Maximum Tk. 2, 00,000.00 c. Other Municipal Areas: Maximum Tk. 1, 00,000.00 For depositors of Mudaraba Term Deposit & Mudaraba Savings A/C: Maximum Tk. 2, 00,000 by liening their a/cs. NCOs of Bangladesh Armed Forces, Teachers of Primary Schools, Private School & Colleges and other professionals : Maximum Tk. 35,000.00 For students : Maximum Tk. 40,000 For personnel of IBBL : Maximum Tk. 75,000 5.1.5 Maturity of investment: Maximum 2 years for beneficiaries except bank's personnel Maximum 3 years for Bank's personnel.
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5.1.6 Mode of Investment: Bai Muazzal. 5.1.7 Equity: Minimum 25% of the total value of the articles. The client shall have to deposit the amount of equity in his Mudaraba Savings /Investment Account with the concerned branch before the disbursement of investment. Minimum 10% of the total value of the articles for Bank's personnel 5.1.8 Guarantor: For beneficiaries except Bank's personnel, there should have two guarantors, one may be the Boss /colleague in the same level or upper level and another guarantor may be husband /wives, parents, brothers etc. For Bank's personnel, no needs of guarantor. 5.1.9 Disbursement: After sanction of investment and deposit of required equity by the client, the Branch shall supply to the concerned investment client the desired articles within seven days by procuring them by way of pay-order/cheque/draft etc. favoring the supplier. For ensuring the ownership of the Bank over the goods, all papers and documents related to the procurement of the goods shall remain in the name of the Bank and Banks sticker shall remain affixed over the same. The ownership shall be transferred in favor of the client after full adjustment of the dues to the Bank.
5.1.10 Mode of Recovery: The Banks investments and profit thereon shall be recovered in 24 monthly go down within a period of 2 (two) years. The monthly go down shall be payable by the first week of every month.
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5.1.11 Security: The investment client shall execute/provide the following documents in order to secure the investment. All required charge documents as per rules of the Bank. A written undertaking to the effect that the monthly go downs shall be paid regularly. Personal guarantee of an official of the same rank or of superior rank. Personal guarantee of another person, preferably family member. 5.1.12 Procedure for Application: Interested clients shall apply in prescribed form to the concerned Branch. The application shall have to be duly recommended by the Divisional Chief of the organization where the applicant serves. Form and booklet outlining the rules and procedures of the Scheme may be obtained from the selected Branches of the Bank on payment of Tk. 25.00 only. 5.1.13 Risk Fund A risk fund shall be created under this Scheme by charging the investment account @ 2% at a time against total investment at the rate of 1% per annum for 2 years. In case of any genuine damage or if the concerned client totally incapable to the Bank, then the amount shall be covered or adjusted from the risk fund. 5.1.14 Other Terms & Conditions: The concerned Branch of the bank shall take possession of the goods supplied to the client in case of his failure to repay 3 (three) installments consecutively. The client shall bear all necessary expenses relating to license, registration, insurance etc. of the goods supplied. The client shall bear cost of all maintenance, repair and preservation.
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5.2 INVESTMENT SCHEME FOR DOCTORS

One of the fundamental rights of every man is to receive necessary Medicare facilities. Majority of our people are denied and deprived of this right and a large number of our children are ill fed and suffer from malnutrition and ill health. Subsequently they become victims of various diseases due to lack of education and knowledge about health care and preventive measures. Medicare facilities as a whole are very limited in the country. Although medical facilities are available to some extent in the cities and towns, majority of the people of the rural area die without Medicare and treatment after prolong sufferings from various diseases. A good number or newly graduated doctors from Medical Colleges are unemployed. Many of the medical graduates are waiting for job because the opportunity for Government service is limited. If these young doctors could be self-employed by extending investment facilities, they could make modern facilities available at the door-steps of rural people.
5.2.1 Objectives: To provide investment facilities for establishment of chambers, clinics, pharmacies and procurement of medical equipment by the unemployed medical graduates and thus to provide self-employment. To assist newly passed unemployed medical graduates to establish clinics by way of formation of groups by 5 doctors. To assist experienced and established physicians to procure improved and modern medical equipment and thus to improve the standard and techniques of treatment. To assist specialists and consultant physicians to procure specialized medical equipment for extending improved treatment to the people.
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5.2.2 Beneficiaries: Newly passed medical graduates who are willing to establish chambers, Pharmacies and small clinics in district and Thana level towns. Experienced and established doctors who are settled in district and other towns but can not procure modern medical equipment to improve their techniques of treatment. Specialized and consultant physicians who are willing to procure latest and specialized type of medical equipment. Priority is given to specialists and consultant physicians like dentists, child specialists, ophthalmologists etc.
5.2.3 Areas of Investment: Establishment cost of Chambers, Pharmacies & Clinics. Procurement of medical equipment and purchase of Motor Cycle for visiting patients in rural areas in case of newly passed medical graduates willing to settle in district and Thana towns. Procurement of modern medical equipment by experienced and established doctors and consultant physicians. Cost of establishment of clinics, purchase of machinery, equipment, accessories and other goods in case of establishment of clinics by a group of doctors. 5.2.4 Ceiling of Investment and duration: In case of established clinics run by experienced doctors the amount on investment is ascertained considering the location of the clinic, its reputation, and efficiency of the entrepreneurs. The maximum period of investment is 4 years. In case of specialists and consultant physicians like Dentists, Ophthalmologists, Child Specialists etc. The amount of investment will be double of the normal ceiling. Ceiling of Investment and duration for various types of doctors is shown in table 6 of annex.
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5.2.5 Investment Mode: Hire purchase Shirkatul Melk: For purchasing of medical equipment. Bai-Muazzal: For purchasing chamber, establishment of clinic and Medicines. 5.2.6 Equity: New doctors under self employment scheme : maximum 10% Established specialized doctors : minimum 20% Established clinic /diagnostic centre : minimum 30% 5.2.7 Mode of Recovery: Investment of the Bank is to be repaid on monthly go down basis. Re-payment of the 1st go down will start after three months from the date of investment. If any investment client fails to pay back three consecutive go downs without satisfactory reasons, the bank may take possession and control of the machinery and equipment etc. Supplied by the Bank. 5.2.8 Security: The ownership of the medical equipments and the motor cycle supplied by the bank on Hire Purchase-Shirkatul Melk basis shall remain with the bank. Against Banks investment, the clients shall have to mortgage property at least equal to the value of investment by the Bank. However, in case of newly graduated doctors the condition of mortgage of property may be relaxed. The investment clients shall have to provide personal guarantee of person(s) acceptable to the bank, in such cases. Original copy of the graduation and post-graduation certificates shall have to be deposited with the bank, in case of self-employment of unemployed doctors. 5.2.9 Procedure for Application and Sanction: Interested medical graduates shall have to apply in prescribed form through the nearest branch of the Bank. Bank will accord Sanction of the investment if the proposal is found viable and acceptable to the bank after examination if its feasibility.
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5.3 SMALL BUSINESS INVESTMENT SCHEME

Bangladesh a third-world developing country is rich in natural and human resources. In spite of vast possibilities, the majority people of the country live-in hardship-below poverty tapped. A large segment of this populace is active youth force. Many of them are efficient, intelligent and energetic with initiative & drive and have courage to tale risks. But they cannot uplift their socio-economic condition due to poverty, lack of financial support and other required facilities. As a result in our country not only unemployment problem increased but also the young generation is involved in anti-social activities; thus creating threat to the social life. 5.3.1 Aims and objects: To expand investment facilities for the entrepreneurs in urban and rural areas with a view to raise their level of income and to improve their quality of life. To inspire and encourage unemployed youths to establish small business enterprises and thereby to create opportunities for self-employment. To extend investment facilities to those small entrepreneurs who could not avail credit or investment facilities from any bank or financial institutions. 5.3.2 Eligibility of the Clients: Investment clients must be permanent residents of the command area of the branch through which they intend to avail investment facilities. Small business and entrepreneurs who are already engaged in trade and business but can not run their operations smoothly for shortage of fund/ capital. Investment shall also be extended to those poor and asset-less unemployed who are honest and efficient, especially those who have ability to run business. Besides the above categories, investment facilities under this Scheme shall also be extended to small and cottage industries and service sector.
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5.3.3 Investment Area: All branches of the Bank are eligible to extend investment facilities under this scheme within 10 (ten) kilometers radius of the respective branch. 5.3.4 Sectors of Investment: a) Livestock rearing of cow, beef fattening, raising and rearing of goats and sheep, poultry, ducks and pigeons. b) Fishery Fish cultivation: excavation, re-excavation and leasing of ponds for cultivation of fish. c) Agro-processing: Cane bamboo and choir products, just bags and jute products, spices, ghee, molasses, flour making; oil extraction, sugarcane crushing, paddy and pulses husking, bee-keeping and honey collection and processing and handicrafts etc. d) Manufacturing Garments making, various types of workshops, container making (plastic, metal, glass), and repairing of rickshaw van and hood of rickshaw, furniture making, quilt and related products making, boat building and repairing blacksmith works bobbin making (plastic, metal) manufacturing of spare parts for handloom, candle making, iron implements making manufacturing of various iron products (wire nail, wire net) rope making, cap making; chanachur preparation and adhesive making e) Transport Purchase of rickshaw, rickshaw van, bullock cart, tanga, country boat and motorized boat. f) Services: Laundry, flour mill, repairing shop and workshop, pumping shop, spice grinding, mill, paddy-pulse husking mill, saw mill, dying and printing, signboard shop, yarn twisting factory, watch repairing shop, television, radio and other electronics repairing shop, refrigerator repairing shop; mustered oil processing shop. 5.3.5 Ceiling of Investment: For Dhaka and Chittagong city Branches : Maximum Tk. 1,00,000 For other Division /District Branches Maximum Tk. 75,000 For branches other than Division /District : Maximum Tk. 50,000
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5.3.6 Mode of Investment: Hire Purchase Shirkatul Melk: For all kinds of equipments & transport sector. Bai-Muazzal: For agro-processing and raw materials for manufacturing purposes. 5.3.7 Maturity of Investment: For HPSM : Maximum 24 months For Bai-Muazzal : Maximum 12 months 5.3.8 Equity: HPSM : Maximum 20% on the total value of equipment /transport Bai-Muazzal: Not applicable 5.3.9 Security: For Investment below Tk. 30,000.00 Ownership of machines & equipments shall remain in Bank's name. Personal guarantee of financially sound respectable& prominent businessmen. For Investment over Tk. 30,000.00 Ownership of machines & equipments shall remain in the Bank's name. The client shall have to give mortgage of immovable properties to the Bank. 5.3.10 Group Guarantee: The investment clients shall be encouraged to form groups. Each group shall consist of minimum 5 members. Thus the members jointly and severally will remain liable and responsible for the payment of investment. 5.3.11 Procedure for Recovery: For HPSM : Monthly go down For Bai-Muazzal: Monthly /Quarterly /One payment within maturity period. For Investment up to Tk. 30,000: Monthly go down for personal guarantee.
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5.3.12 Risk Fund: A risk fund is made by bank yearly at a fixed rate on total value of this type of investment. In case of default of client, this fund is used for adjustment.
5.4 HOUSING INVESTMENT SCHEME

One of the basic human needs is to have a house to live in. Housing has now become an acute problem in the country, especially in the towns, cities and metropolis. With their limited income, it has become almost impossible on the part of the lower middle class, middle class, even for upper middle class to solve their housing problem. To meet this basic human need, Islami Bank Bangladesh Limited is committed to contribute to this end to provide a peaceful and happy. 5.4.1 Objectives: To extend the benefits of the investment of the Bank under the Scheme to different sections of the people. To assist in solving the existing housing problem of the country. To assist the service holder of professionals with fixed income to arrange for house of their own. 5.4.2 Beneficiaries: Initially the following categories of people shall be eligible to apply for; availing investment facilities under this Scheme: Officials of the Defense Forces. Permanent Officials of Government, Semi-Government and Autonomous Organizations. Teachers of the established Universities, University Colleges & Medical Colleges. Graduate Engineers, Doctors and established professionals. Bangladeshi Officials of reputed Multinational Companies, International Financial Organizations, Donor Agencies and. Foreign Embassies etc.
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Wage earner professionals like Doctors, Engineers, Accountants, Teachers and any other profession doing good job abroad with hand-some pay-package. The client must have exclusive, undisputed possession and ownership of land. The leased property must be on lease for 99 years and must be legal. If the investment client is a service holder then he must have at least 5 years unexpired service prior to retirement.
5.4.3 Target Area: At the initial stage, the Scheme is being implemented in:
Dhaka metropolitan area. Chittagong metropolitan area. Rajshahi metropolitan area. Khulna metropofitan area. Sylhet metropolitan area. Later on the Scheme will be implemented in other district headquarters and business areas. 5.4.4 Scope of Investment: Investment is to be extended to build new houses on the clients own land, to purchase built houses /apartments /flats and for extension/ completion of the house constructed/under construction. The building to be constructed on the land must be as per approved plan of the competent authority of that area, viz. RAZUK. The amount of investment will be limited to the following: a) For construction of new building on clients own land: Maximum 60% of the total investment will be mode by bank, which do not exceed Tk. 30, 00,000 b) For purchase of apartment /flat/ready-made house: maximum 50% of the total investment will be made by bank, which exceed Tk. 20, 00,000.
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5.4.5 Mode of Investment: Hire Purchase under Shirktul Melk 5.4.6 Period of Investment: The maximum period of investment shall be generally 15 years. Reasonable gestation period for construction be allowed considering the size of construction and Banks investment. 5.4.7 Rent for Bank: Bank's Rent the Bank, According to its normal practice shall decide rent on the investment. The clients, who will repay the dues in time or before the stipulated time by way of payment of all due go downs regularly, they will be allowed rebate on the rent. 5.4.8 Disbursement of Investment: Bank will pay the sanctioned money through Pay-order directly or through investment client to the supplier of construction materials/owner of the apartment/owner of the built. house. However, the following points shall be taken into consideration in disbursing the investment: In case of purchase of apartment/flat/built house, the client shall have to deposit the equity money in the Branch. In case of construction of house on the client's own land, the valuation of the Bank as regards clients investment shall be considered final. The client shall have to submit to the Bank, the construction plan approved by the competent authority and also the required permission to mortgage the property. The client must execute all necessary documents of mortgage. Agreement of sale and other documents must be vetted by the penal lawyer of the Bank. 5.4.9 Procedure for Recovery: The client will have to pay the Bank's dues by go down immediately after the expiry of the period of construction. The client will have to execute irrevocable power of attorney in favor of the Bank.
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5.4.10 Security: Personal guarantee of the clients, his/her spouse, adult son(s) and daughter(s) shall have to be obtained. Mortgage of land and building to be constructed thereon, apartment /flat/house in favor of the Bank.
5.5 TRANSPORT INVESTMENT SCHEME

Under this scheme, investment in being allowed to the existing successful businessmen and potential entrepreneurs in this sector for all types of road and water transport with simple and easy terms and conditions. The bank is also extending investment facilities to multinational companies, established, business houses and well to do officials and professionals for acquisition of private cars, microbus and jeeps. 5.5.1 Aims and Objectives: To assist in the development of communication system of the country. To help overcome the existing transportation problem. 5.5.2 Categories of Transport: Road Transports Microbus, jeep, pick-up van, Auto-rickshaw, Tempo. Bus, truck, minibus, Ambulance. Water Transports Cargo vessel of maximum 500-ton capacity. Ocean going vessel of maximum 800 to capacity. 5.5.3 Target Group: Bus /Truck/Minibus Successful businessman /firm engaged in transport business and potential Individual/ businessman/firm who intends to take-up transport as business. Private Car /Microbus /Jeep Permanent Officials of Government, Semi-government, Autonomous Bodies, Corporations, Banks and Financial /institutions, Professionals: University Teachers, Doctors and Engineers.
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Experienced Person/Firm engaged or interested in transport business (Rent-a-car).
Auto Rickshaw /Tempo /Pick-up van Persons, Business, Firms who have already proved the transport business and those potential businessmen/firms who are interested to take transport as business. Water Transport Experienced and successful Businessmen engaged in water transport business.
5.5.4 Target Area: Road Transport: All branches of the Bank. Water Transport: Branches adjacent to the areas of river ports to be given priority. 5.5.5 Mode of Investment: Hire Purchase under Shirkatul Melk 5.5.6 Ceiling of Investment and Clients Equity: For service holder the monthly installment does not exceed 40% of his total salary, in case of these schemes. Ceiling of Investment and Clients Equity for various categories of transport is shown in table 7 of annex. 5.5.7 Period of Investment: Maximum 3 years from the date of delivery of the vehicle. 5.5.8 Rent of Investment: The Bank as per existing rules shall charge rent on investment. Clients, who will repay the entire investments within the stipulated period or earlier by way of regular payment of installments, shall be given rebate over the rent. The formula is: Principal amount No of days 15 365 days 100 5.5.9 Security: The ownership of the vehicle shall remain in Bank's name till full repayment of investment including rent. The client shall have to mortgage immovable properties as collateral security. In case of Officials of Government, Semi-Government and Autonomous Bodies, personal guarantee of the officer of the same grade or of superior grade and in case of officials of public limited company or business houses, corporate guarantee of the employer/ chairman/managing director shall have to be provided.
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5.5.10 Disbursement of Investment: Bank's sanctioned amount shall be disbursed directly to the supplier of the vehicle. Before disbursement the client must provide his equity and cash security into banks concerned branch. The cost of chassis and bodybuilding shall be taken into consideration in ascertaining the price. 5.5.11 Procedure of Recovery: The client shall have to repay the dues to the Bank in monthly go down.
Required number of post-dated cheques for the whole period of investment

mentioning the amount of monthly go downs must deposited to the Bank.
5.6 CAR INVESTMENT SCHEME

Car is considered as on essential mode of transport in the modern society, particularly by a section of the officials, business houses and business executives and established professionals for movement in discharging their duties and responsibilities punctually and efficiently. To meet this need Islami Bank has introduced the Car Investment Scheme for the mid and high ranking officials of government and semi-government organizations, corporations; executives and directors of big business houses and companies also for persons of different professional groups on easy payment terms and conditions. 5.6.1 Objectives: To meet the demand of senior officials of different organizations, established business houses and companies and persons of various professional groups. To assist the above categories of persons to procure a car on easy payment terms and conditions and thus become its proud owner. To assist in minimizing transport problem in the private sector and help the mid and high-ranking officials and professionals with fixed income.
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5.6.2 Beneficiaries: Permanent senior officers/executives of the following organization Category-A
Government Organizations, Banks. Semi-Government Organizations/Autonomous Bodies/Corporations. CO of Armed Forces, Teachers of the Universities, Government Colleges. Category-B
Member of all other reputed professional groups having smart income. 5.6.3 Nature of Car & Procurement Procedure: New/reconditioned cars of reputed brands imported within the provision of import policy in force shall be allowed to procure under the Scheme. Interested clients should submit at least 3 (three) quotations from 3(three) different bonafide and genuine car dealers /importers /sellers. 5.6.4 Ceiling of Investment: Banks investment is maximum Tk. 3.50 lac per client against purchase cost of the vehicle Registration and comprehensive insurance cover shall be in the name of the Bank. 5.6.5 Clients Equity: Minimum 30% of the purchase cost of the vehicle. The amount of equity shall have to be deposited with the Bank before disbursement of Banks investment. 5.6.6 Period of Investment: Period of investment is maximum 4 (four) years from the date of disbursement. 5.6.7 Mode of Investment: Hire Purchase Hire Purchase under Shirkatul Melk.
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5.6.8 Security Requirements: The following shall be obtained as security against banks investment under this Scheme: Category-A Personal guarantee of the investment client. Personal guarantee of any of the officers of the bank. Category B
Mortgage of land Bank Guarantee 5.6.9 Procedure for Application & Sanction of Investment: Interested persons falling willing the eligibility criteria are required to apply. Their respective Departmental Heads should duly recommend the applications of service holders. The Bank shall sanction investment, if the proposal is found suitable and viable after feasibility study. The Balk reserves the right to sanction any investment or reject it. 5.6.10 Mode of Disbursement: Bank's sanctioned amount shall be disbursed directly to the supplier of the vehicle as mentioned in the quotation/indent submitted and accepted for the purpose on completion of the following requirements: Completion of All formalities including documentation for the investment. Obtaining of securities /collateral as per sanction requirements. 5.6.11 Mode of Recovery: Dues to the Bank shall recover in the following manner: In equal monthly installment along with monthly rent, starting from the fist week of the month, following the month of disbursement. The monthly installment shall be payable by the first week of every month.
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5.7 RURAL DEVELOPMENT SCHEME (RDS) OF IBBL

IBBL envisages an economic system based on equity and justice. Considering that majority of the population below poverty line lives in rural Bangladesh, the Bank hold RDS with a view to creating employment opportunity for them and alleviates their poverty through income generation activities. The IBBL through its RDS project has been implementing integrated program for the landless poor, aged laborers and marginal farmers aimed at meeting their basic needs and development. Consciousness among the poor needs to be enhanced so that they can firm up their position in the socio-economic structure of the country. In order to consolidate their economic base, invested money should be used in income generating activities so the poorer section of the population can become self-reliant. RSD works for the realization of that objective. 5.7.1 Objectives: The followings are the important objective of IBBLs Rural Development scheme: To bring the poorer populating within an organizational framework by setting up certain rules and regulations with a view to free them from the curse of poverty. To extend investment to agricultural & non-agricultural sectors in the rural areas. To invest on employment and income generation activities of the rural population. To provide self-employment for the poor and distressed people. To bring both male and female to provide employment under income generation activities and help them to attain self-reliance step by step. 5.7.2 Selection of Ideal Village: For creating an ideal village, one/more villages to be selected within to km of each specified branches area. While doing this considers the following matters. Easy transportation Having agricultural /non-agricultural sectors. Majority of low income holder After primary selection, baseline survey will be done in that village.
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5.7.3 Beneficiaries: The RDS of IBBL is target group based. Beneficiaries of the plan are thus wage labors and marginal farmers. Selection criteria for members of the target group are as follows. Farmers owning go down 0.50 acres of land including sharecroppers; Persons engaged in non-agricultural activities owning go down 0.50 acres land or landless; Females who are interested in income earning projects, but whom unable to do so due to dearth of money, may form a group and get the financial support. Distressed people may undertake income-generating schemes in non-agricultural sectors such as cow/goat/chicken etc. For their self-employment. Landless to be given priority in selecting target groups whose yearly family income must be below Tk. 15,000/-. 5.7.4 Investment Avenues, Higher Limits & Duration: Investment avenues, higher Limits and duration of investment are shown in table 8 of annex. In the table we see that higher limit for crop production is taka 10,000 tk. and duration is 1 years. For fish cultivation higher limit is 25,000 tk. and duration is 3 years. 5.7.5 Mode of Investment: Bai Muazzal Mudaraba Bai-Murabaha HPSM Musharaka Bai-Salam 5.7.6 Security: For every member: Personal guarantee from other member of his /her group should be provided for each investment scheme. For cultivation of fish in pond and purchase of equipment for agriculture and irrigation Assisted security is taken.
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5.7.7 Process of Recovery: It is believed that the banks best chance for successful recovery is dependent upon property structuring the go down payments. The following considerations are taken into account while determining the appropriate go down payment: For the non-agricultural sector go downs may be made on a
weekly/monthly/quarterly basis. Determination for the appropriated go down frequency in the agricultural sector depends on the cropping cycle. 5.7.8 Procedure for application: Clients of selected ideal villages can apply in the prescribed form of the banks concerned branches through concerned group.
5.8 AGRICULTURE IMPLEMENT INVESTMENT SCHEME

Bangladesh is predominantly an agricultural country with vast majority of people living in rural areas. Most of our people for their living are dependent on agriculture. Agriculture still contributes the lion share of the gross domestic product. But we could not as yet become self-sufficient in food production. We still import a bulk quantity of food grains from abroad to meet the deficit. We must modernize our agriculture and establish more and more industries in order to minimize imports. We can bring about revolutionary changes in the agricultural sector by adopting modern agricultural technology replacing the age-old traditional way of cultivation and increasing the use of fertilizer. This can only be done by collective efforts of both public and private sectors. 5.8.1 Objectives: To create opportunities for self-employment of un-employed rural youths. To help farmers to augment agricultural production. To assist in the introduction and use of modern technology in the auricular sector. To play auxiliary role in achieving self-sufficiency in food production.
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5.8.2 Items of Agricultural Implements: Power tillers, Power pump. Thrasher Machine. Shallow Tube well. Any other agricultural implements proposed by the branch and which has local demand. 5.8.3 Investment Area: Investments are allowed under this Scheme through all branches of he Bank except the branches located in the metropolitan areas. The command area of the concerned branch is within 15 miles radius from its location. 5.8.4 Beneficiaries: Educated or half-educated rural youths, educated or illiterate farmers and any person ready to accept agriculture as business may apply for investment facilities. The applicant farmer should person sound health and his age must be minimum 18 years and maximum 50 yard. The applicant must be physically and mentally fit and willing to operate the machine. Applicant must be a permanent resident of the concerned area and be willing to stay and work there.
5.8.5 Period of Investment: 2 (Two) years.
5.8.6 Mode of Investment: Hire Purchase Shirkatul Melk.
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5.8.7 Client Equity: Generally the investment client shall have to pay 20 % of the cost of agriculture implements/ equipment as equity. Equity shall be 10% if the Bank undertakes any special project under the supervision of any registered NGO approved by the Bank. 5.8.8 Security: The agricultural implements to be supplied to the investment client shall remain in the name of the bank till the repayment\adjustment of the dues to the bank. Client, who is unable to offer collateral security of immovable property, shall have to provide personal guarantee of two respectable persons acceptable to the Bank. 5.8.9 Repayment of Procedure: Repayment Procedure The investment shall have to be repaid in 4 installments within a year. The installment shall be fixed on the basis of the sowing / transplantation and harvesting seasons of the crop. The branch Manager shall decide both the amount and time of the repayment of installment. 5.8.10 Risk Fund: Risk Fund Under this scheme a risk fund shall be created by debiting the conceded investment account an amount equal to 2%of the Bank's investment at a time at the rate of 1% per annum for 2 years.
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5.9 MICRO INDUSTRIES INVESTMENT SCHEME

Bangladesh as a developing country has been trying for its overall economic growth. One of the major problems confronting its growth is lack of development of enterprises and potential entrepreneurs who can create more job opportunities by establishing new enterprises in the industrial sector. Every year quite a good number of youths are coming out of the general/technical educational institutions to add to this already crisis ridden employment market. Development programs and efforts will bring no meaningful result unless and until income generating employment opportunities can be created for the growing number of unemployed people including the educated unemployed youths. Establishment and expansion of micro industries can play a vital role in creating more employment opportunities and in the overall socio-economic development of the county.
5.9.1 Objectives: The main objectives of the scheme are as follows: To create income generating employment opportunities through establishment of new micro industries. To encourage establishment of micro industries in different areas of the country by potential persons like educated, unemployed, skilled and technically qualified. To encourage wage earners to utilize their hard-earned money in the country by providing additional investment needs for establishment of micro-industries. To provide investment facilities for self-employment of the unemployed and under employed persons having education, knowledge, skilled and experienced.
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5.9.2 Beneficiaries: The eligibility criteria for the selection of the entrepreneurs under the scheme will be as under: Engineering diploma degree holders, persons having certificate from any Technical Notational Training Institutes and willing to set-up micro industries. Educated unemployed youths having initiative and knowledge regarding the proposed industry. Skilled and semiskilled persons having practical knowledge and experience in industrial operations. Wage Earners who want to establish micro industries having work experience/ training in the particular field of industry. 5.9.3 Ceiling of investment by bank: The extent of Bank's investment will depend upon the actual requirement of a particular industry/ enterprise, its nature of production, model & origin of machineries the working capital requirements etc.Bank's investment shall not be more than 60% of the cost of machineries or 50% of the total cost of the project (both machinery & working capital), whichever is less, within the maximum total investment ceiling of Tk.5.00 lac per project/enterprise. The client's equity shall be calculated taking into account cash investment plus the cost of the project land & building if owned. 5.9.4 Security: To secure Bank's investment, collateral security of immovable properties backed by irrevocable General Power for Attorney shall have to be obtained. In case of technically qualified persons and educated unemployed youths, the original educational certificates shall have to be deposited with the Bank. The ownership of machineries/equipments shall remain in the name of the Bank till full adjustment of Bank's dues.
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5.9.5 Period of Investment: Capital Machinery: 5 years (Exclude reasonable gestation period) Raw Materials: 1 year (From date of disbursement of investment) 5.9.6 Risk Fund: The client will contribute in the risk fund @ 20% of the total Bank's investment for the project/ enterprise at the time of disbursement in order to meet any loss caused by genuine / and unforeseen risks hazards. 5.9.7 Mode of Investment: Shirkatul Melk: Capital Machinery. Murabaha: Raw Materials. 5.9.8 Recovery of Investment: The mode of payment shall be determined considering the cash flow of the particular project enterprise within the investment period. However, the following may be considered in fixing the mode of payment. a. Hire Purchase: In monthly/ fortnightly/ weekly go down basis. b. Murabaha: In Lump sum at the end of the tenure of investment 5.9.9 Command Area: Investment under the Scheme shall be made within the 20 km. radius from the branch. 5.9.10 Sanction & Disbursement: Project investment Department of Head office shall scrutinize the proposal on the basis of the information furnished and the recommendation of the Branch and Zonal Office. If the proposal is found suitable in all respect for making investment, Head Office will issue sanction advice to the Branch, Thereafter, necessary arrangements shall be made by the Branch for disbursement.
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5.10 MIRPUR SILK WEAVERS INVESTMENT SCHEME

The scheme has been taken up to assist the silk weavers of Mirpur area particularly in respect of requirement of working capital, BME of existing unit by adding further machinery's, to develop new entrepreneurs and to assist the workers for getting further training for producing products of various modern design and for modernization of the Silk sector.
5.11 INDUSTRY INVESTMENT SCHEME

Industry investment is a more complex and board financing morale than any other trading mode. Financing is made by the demand and supply mechanism of market. 5.11.1 Objectives: To encourage entrepreneurship To decrease unemployment problems of the country To increase GDP in industry sector.
5.11.2 Target Group: All types of industries except those, which are prohibited by the law of the land and Islami shariah. But mainly Garments and Textile mills oriented. 5.11.3 Ceiling of Investment: There is no fixed amount for industry investment scheme But it must be remembered that the Bank can't sanction more than 50% of its equity against any single client. 5.11.4 Equity: Bank's equity and clients equity are 60:40 respectively. 5.11.5 Mode of Investment: Bai Muazzal or Bai Murabaha: For working capital Hire purchase under Shirkatul Melk: For factory / building / machineries / Transpiration 5.11.6 Period of investment: Minimum 3 years maximum 7 years.
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5.11.7 Sanction and Disbursement: After satisfying all types of inspection reports that are conducted by Branch, these reports are sent to head office for further evaluation. Head Office then analyses these reports in detail as much as possible and collects CIB reports from Bangladesh Bank. If the reports are positive, then Head office provides Sanction advice to Branch. After sanction, Branch initiates investment disbursement against particular clients.
5.12 INVESTMENT ON REAL ESTATE SECTOR

Investment in the form of land, Building, Market, Apartments for personal / rental shall be termed as Real Estate investment. 5.12.1 Purpose of Investment: To extend to build new houses and for extension / completion of the house already constructed, commercial building, shopping complex, flat / apartment etc. 5.12.2 Mode of Investment: Hire purchase under Shirkatul Melk 5.12.3 Beneficiaries: Permanent staff: Staff House building Investment scheme (SHBIS) (after 10 years job continue) Others: (1) Real state Investment program (REIP) (any person with Age limit 50 to 60 years) (2) Housing Investment scheme (HIS) (any professionals, with out age limit) 5.12.4 Ceiling of Investment and equity: For Land: 100% Bank's equity only for staff (each installment should cover minimum 30% of staff's take on salary) For Building: Bank's equity and client's equity are 60:40 respectively. For Apartment: Bank's equity & client's equity are 50:50 respectively. For Market: Bank's equity & Client's equity are 50:50 respectively.
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5.12.5 Installment payment by client: Calculation of each installment includes principal amount, rent & Gestation period rent.
Principal: Rent:
Principal Period of Investment (1st Principal+Last Principal)xRate of Return 12 /2(if gestation period is 6 months)
PrincipalRate of Return Gestation Period Rent: 2 /No. of total installment (If period is 6 months)
5.12.6 Rebate: Bank allows @ 2% P.A rebate on the rent for those clients who repay the in time or before the stipulated time by way of payment of all due installments regularly. 5.12.7 Period of Investment: The maximum period of investment will be 15 years. Reasonable gestation period in allowed considering the size of the construction. 5.12.8 Stages of Investment: Purchase: Purchase an asset jointly both the Bank and client and share the benefits as per agreement and bear the loss in proportion to their respective equity. Hire: Clients enjoy the service or benefit against specified rent from the asset owned by the Bank. Sale: the Bank transfers Ownership of the asset to the client after repaying the Bank's dues. 5.12.10 Security: For staff: Lien the Provident Fund & Benevolent Fund. For others Personal guarantee of the clients, his/her spouse, adult son(s) and daughter(s). Mortgage of land and building to be constructed thereon, apartment / flat house.
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5.13 SWOT ANALYSIS OF IBBL
STRENGTHS: Unique System: 100% supervise credit, Related with shariah. Religious Feelings of the people. No Interest against Welfare Investment Schemes. Efficient Management System. High Morality of the employees because authority recruits those peoples whose mentalities are similar to them. More Branches than other conventional Banks. IBBL has a Welfare Foundation which acts as Promotional activities.
WEAKNESSES: IBBL does not offer Contemporary Investment Schemes in another sector like as Education, Marriage, Travel and CNG conversion etc. Absence of quality services as customer expectations to IBBL. Deficiency of experienced manpower because maximum employees are not from commerce background. Absence of Islamic money market. Lack of Strong Promotional Activities. IBBL still remain under lower position in the world ranking.
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OPPORTUNITIES: Rural Development Scheme of IBBL has a great chance to save the countys poor people from taking loan from different NGOs or few banks with higher interest rate, because IBBL provides no Interest. IBBL can enrich their Welfare Investment schemes by offer some contemporary investment schemes in another sectors such as Education, Marriage, Travel, CNG conversion etc. IBBL can give more emphasis on Micro industries Investment Scheme and Small Business Investment Scheme. IBBL has a verse opportunity to hold the most of the customers of Bangladesh as its banking operation is based upon Islamic Shariah. Providing service by Visa Card or Master Card types of cards to customers.
THREATS: State law defers with the Islami Shariah. In the money market of Bangladesh there is no call money system of Islami Shariah. Few other conventional banks have opened their Islamic banking branch thats why the people who expected quality services from bank are taking the facility.
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CHAPTER 6: CONSUMER CREDIT SCHEMES OF PRIME BANK LIMITED.

In order to provide financial assistance to the limited income group for raising their standard of living by acquiring domestic durables, Prime Bank introduced a Scheme to improve the quality of life particularly of the fixed income earner of the society and this scheme is known as Consumer Credit Scheme.
Eligibility for Credit: The persons having confirmed/permanent job in any one of the following organizations and age between 20 to 50 years are eligible for availing of Credit facilities under the Scheme. 1. Government Organization 2. Semi-Government and Autonomous Bodies 3. Banks, Insurances Companies or any other Financial Institutions 4. Armed Forces, B.D.R, Police and Ansar 5. Private Organizations having corporate structure 6. Teachers of Universities, Colleges and Schools
Besides the above, Professionals like Doctors, Engineers, Architects, Lawyers, Journalists, Chartered Accountants; Self Employed Business Executives are also eligible for enjoying credit facilities under this scheme subject to the providing of Bank Guarantee or Insurance Guarantee for the amount of Credit.
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Consumer Credit Products:

Household Durable Loan. Car Loan. Doctors Loan. Any Purpose Loan. Advances against Salary. Education Loan. Marriage Loan. Travel Loan. CNG Conversion Loan. Hospitalization Loan.
6.1 Household Durable Loan:

Household durable loan will be sanctioned against guarantee of third parties acceptable to the bank or pledge of FDR, Saving instrument of Banks and assignment of salary where applicable. 6.1.1 Eligible Items / Articles: 1. Motor Cycle 2. Personal Computer, Photocopier / Fax Machine. 3. Photocopier / Fax Machine, Small PABX System, 4. Television, Mobile Phone Set, Refrigerator. 5. Audio-Video Equipment 6. Furniture or Any Other Household Durables 6.1.2 Loan Limit and Period of Loans: Name of the Item Motor Cycle PC/Lap Top Photocopier/Fax Other Item/Furniture Loan Limit Tk. 1,00,000 Tk. 1,00,000 Tk. 1,00,000 Tk. 5,00,000 Duration of the Loan 2-yrs 2-yrs 2-yrs 3-yrs
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6.1.3 Required Documents: 1. Employer Certificate for Service Holders 2. Photocopy of Trade License for Businessmen 3. Photocopy of Tin Certificate, if any 4. Bank Account Statement of last six months 5. Photocopy of Passport, Telephone (T&T) Bill, if any 6.1.4 Security: 1. Two Personal Guarantee 2. Undated Cheques
6.2 Car Loan:

Car Loan will be sanctioned against Registration of the Vehicle in the name of the Bank. Instead of down payment, the Customers shall have option to avail loan against their FDR or any other savings instruments up to 90% of the loan amount. 6.2.1 Eligible Items / Articles: 1. Car 2. Jeep, Pick up Van, Cover Van or Any other vehicles for own use. 3. Station Wagon 4. Bus / Truck for Corporate Bodies (own use) 5. Ambulance for Corporate Bodies / Medical Professionals 6.2.2 Loan Limit and Period of Loans: Name of the Item New Vehicle Recondition Vehicle Bus / Truck for Corporate Bodies for own use only Loan Limit Tk. 40,00,000 Tk. 15,00,000 Tk. 40,00,000 Duration of the Loan 5-yrs 4-yrs 5-yrs
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6.2.3 Required Documents: 1. Employer Certificate for Service Holders 2. Photocopy of Trade License for Businessmen 3. Photocopy of Tin Certificate, if any 4. Bank Account Statement of last six months 5. Photocopy of Passport, Telephone (T&T) Bill, if any. 6.2.4 Security: 1. Undated Cheques 2. Registration of the vehicle in the name of the Bank.
6.3 Doctors Loan:

Any Bangladesh citizen who is a graduate in Medical Science / Dentist / Eye / Allopathic / General Practitioners desiring to set up chamber, medical store with necessary medical equipments and to become self-employed have the opportunity to take this loan.
6.3.1 Loan Limit and Period of Loans:

Type of Customer General Practitioner MBBS/BDS Specialized Doctor 6.3.2 Required Documents: 1. Employer Certificate for Service Holders 2. Bank Account Statement of last six months 3. Photocopy of Passport, Telephone(T&T) Bill, if any 4. Attested Photocopy of the Certificates of the last degree and BMA membership certificate 6.3.3 Security: 1. The ownership of medical equipments to be purchased must be hypothecated to the Bank under hire purchase mode 2. Two personal guarantee and undated cheques. Loan Limit Tk. 5,00,000 Tk. 10,00,000 Duration of the Loan 4-yrs 5-yrs
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6.4 Any Purpose Loan:

This scheme is to meet the emergency need for fund by fixed income group of salaried person in Govt. /Semi govt. /Autonomous bodies/ Multinational Co./
Banks/Insurance/Financial Inst./Educational Inst. with confirmed 3-years service ahead. 6.4.1 Loan Limit and Period of Loans: Type of Customer Salaried Person 6.4.2 Required Documents: 1. Employer Certificate 2. Photocopy of Tin Certificate, if any 3. Bank Account Statement of last six months 4. Photocopy of Passport, Telephone (T&T) Bill, if any. 6.4.3 Security: 1. Undated Cheques 2. Lien on Service benefit of the concerned employee from the employer. Loan Limit Tk. 1,50,000 Duration of the Loan 2-yrs
6.5 Advances against Salary:

This scheme is for salaried Bangladeshi person in Govt. /Semi govt. /Autonomous bodies/ Multinational Co. / Banks / Insurance / Financial Inst. / Educational Inst. with confirmed 3-years service ahead. Loan limit is 8 times of gross salary who have Salary A/C with us and 6 times of gross salary who have not Salary A/C with us subject to highest Tk. 3.00 lac.
6.5.1 Loan Limit and Period of Loans: Type of Customer Salaried Person Loan Limit Tk. 3,00,000 Duration of the Loan 2-yrs
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6.5.2 Required Documents: 1. Employer Certificate 2. Photocopy of Tin Certificate, if any 3. Bank Account Statement of last six months 4. Photocopy of Passport, Telephone(T&T) Bill, if any 6.5.3 Security 1. Undated Cheques 2. Lien on Service benefit of the concerned employee from the employer
6.6 Education Loan:

This scheme is for meeting the fund requirement for higher education of children of salaried persons in Govt. / Semi govt. /Autonomous bodies/ Multinational Co. / Banks/ Insurance/ Financial Inst. / Educational Inst. with confirmed 3-years service ahead and businessman having adequate cash flow. 6.6.1 Loan Limit and Period of Loans: Type of Customer Salaried Person/ Businessman 6.6.2 Required Documents: 1. Employer Certificate for Service Holders 2. Photocopy of Trade License for Businessmen 3. Photocopy of Tin Certificate, if any 4. Bank Account Statement of last six months 5. Photocopy of Passport, Telephone(T&T) Bill, if any 6. Evidence thereof. 6.6.3 Security: 1. Undated Cheques 2. Two personal guarantees. Loan Limit Tk. 3,00,000 Duration of the Loan 2-yrs
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6.7 Marriage Loan:

This scheme is to meet the fund requirement for marriage purpose of salaried person in Govt. /Semi govt. /Autonomous bodies/ Multinational Co./Banks/Insurance/Financial Inst. /Educational Inst. with confirmed 3-years service ahead and businessman having adequate cash flow. 6.7.1 Loan Limit and Period of Loans: Type of Customer Salaried Person/ Businessman 6.7.2 Required Documents: 1. Employer Certificate for Service Holders 2. Photocopy of Trade License for Businessmen 3. Photocopy of Tin Certificate, if any 4. Bank Account Statement of last six months 5. Photocopy of Passport, Telephone (T&T) Bill, if any 6. Evidence thereof. 6.7.3 Security: 1. Undated Cheques 2. Two personal guarantees. Loan Limit Tk. 3,00,000 Duration of the Loan 3-yrs
6.8 Travel Loan:

This scheme is for meeting fund for travel purpose of salaried person in Govt. /Semi govt. /Autonomous bodies/ Multinational Co./Banks/Insurance/Financial Inst.
/Educational Inst. with confirmed 3-years service ahead and businessman having adequate cash flow. 6.8.1 Loan Limit and Period of Loans: Type of Customer Salaried Person/ Businessman Loan Limit Tk. 2,00,000 Duration of the Loan 3-yrs
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6.8.2 Required Documents: 1. Employer Certificate for Service Holders 2. Photocopy of Trade License for Businessmen 3. Photocopy of Tin Certificate, if any 4. Bank Account Statement of last six months 5. Photocopy of Passport, Telephone(T&T) Bill, if any 6. Evidence thereof. 6.8.3 Security: 1. Undated Cheques 2. Two personal guarantees.
6.9 CNG Conversion Loan:

This scheme is to meet the funds requirement for CNG conversion of vehicles for those who are salaried person in Govt. /Semi govt. /Autonomous bodies/ Multinational Co./Banks/Insurance/Financial Inst. /Educational Inst. with confirmed 3-years service ahead, businessman having adequate cash flow and corporate Bodies. 6.9.1 Loan Limit and Period of Loans: Type of Customer Owner / Valid user of the vehicle Corporate Bodies 6.9.2 Required Documents 1. Employer Certificate for Service Holders 2. Photocopy of Trade License for Businessmen 3. Photocopy of Tin Certificate, if any 4. Photocopy of Passport, Telephone (T&T) Bill, if any. 5. Photocopy of the registration of the Vehicle Loan Limit Tk. 60,000 Tk. 1,00,000 Duration of the Loan 1.5-yrs 1.5-yrs
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6.10 Hospitalization Loan:

Hospitalization loan will be provided for treatment purpose or surgery where hospitalization is necessary. The loan shall be available for the salaried person, i.e., employee of the Govt. Organizations / Semi-Government Organizations / Autonomous Bodies / Multinational Companies / Banks / Insurance Companies / Educational Institutions / Corporate Bodies. 6.10.1 Loan Limit and Period of Loans:
Type of Customer Salaried Person
Loan Limit Tk. 5,00,000
Duration of the Loan 2-yrs
6.10.2 Required Documents: 1. Employer Certificate 2. Photocopy of Tin Certificate, if any 3. Photocopy of Passport, Telephone (T&T) Bill, if any. 4. 6.10.3 Security: 1. Personal guarantee from an individual having means, standing and social status acceptable to the bank and another from his/her family 2. Undated cheques in favor of the Bank covering the whole amount 3. Letter of Assurance from the Employer / Authority.
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6.11 Comparative Analysis of Welfare Investment Schemes of IBBL with Customer Credit Products of Prime Bank Ltd. (PBL)
Prime Bank Limited is more promising Bank of Bangladesh after IBBL.PBL was Established in 1995 but it becoming nearer Competitor of the IBBL day by day by its contemporary Business Policy, Tactics and Promotional activities. Here, IBBL is a Representative of Islamic Banking System and PBL is a Representative of Conventional Banking System although PBL has a few branches that run Islamic Banking System.
Islami Bank Bangladesh Limited (IBBL)
Prime Bank Limited (PBL)

Ten Consumer Credit Products for Customer.
IBBL offer Twelve Welfare Investment PBL offer Schemes for Welfare of the Customers.
IBBL offer interests free Investment PBL offer Various Loan for Customers Schemes for the Welfare of Customers. with Interest (fixed rate). Interest which is prohibited (Haraam) in Islamic Shariah. IBBL does not give cash to the Clients, PBL offer Cash to the clients who are when a Client Apply for any Investment interested to take any kind of loan. The Scheme, The Authority of Investment client Section buys the product will repay the amount by
after installment with Interest within a period
Investigations and sell the Product to the of time. client with profit. The client will repay the amount by Interest free Installment.
If the client is unable to pay the amount,
If the client is unable to pay the amount, then take undated cheques in
IBBL then takes it from the Mortgage of PBL
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the respective client. Some times bank favor of the Bank covering the whole Consider unable clients. amount.
IBBL has Some Exceptional Schemes PBL has Some Contemporary Loan Such Such as, Housing InvestmentScheme, as, CNG Conversion Loan, Travel Loan, Transport Agriculture Scheme, Investment Investment Implement Mir Pur Scheme Silk and Scheme, Any Purpose Loan, Advance against Investment Salary, Marriage Loan, Education Loan Weavers and Hospitalization Loan which are not Rural offer by the IBBL.
Development Scheme (RDS) which are not offer by PBL.
IBBL does not hold a specialized PBL has an Important Loan Section Welfare Investment Scheme like as SME Called SME Credit Unit. Under this of PBL.IBBL called hold an Investment credit unit PBL offer some essential loan Business such as, Commercial Space Loan,
Scheme
Small
Investment Scheme and Micro Business Festival Loan, Capital Machinery Loan, Investment Scheme which are only offer Working Capital Loan, Flexible
for the people who are interested to Working Capital Loan and Herbal Loan. starting small business but this scheme is not specialized and effective as SME credit unit of PBL.
In Household Durable Scheme, IBBL In Household Durable Loan.PBL offer offer amount which depends not only on an amount which only depends on persons like as Doctors, Engineers and Products such as motor cycle, personal Teachers etc but also vary from place to computer or furniture. place such as Dhaka city or other The limit of the amount is Tk. 1, 00,000 Districts. to 5, 00,000.
The limit of the amount is 35,000 to 3, Duration of the loan is Maximum 2 years 00,000 tk. for all kinds of products.
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The maturity periods are 3 years for all types of amounts.
In Car Investment Scheme, IBBL offer In Car Loan, PBL offer amount which amount which depends on Organization depends on Eligible Items/Articles like like Govt. /Semi Govt. or Autonomous as Pickup Van, Jeep or Station wagon bodies and persons like CO of Armed etc. forces, Teachers or Executives. The loan limit of Car Loan is 15, 00,000
Banks Investment is maximum 3.50 lac to 40, 00,000 lac. against purchase cost of the Vehicle. The duration of the loan Maximum 5
The periods of Investment are Maximum years. 5 years from the date of disbursement.
In Investment Scheme for Doctors, IBBL In Doctors Loan, PBL offer amount offer huge amount which depends on not which depends only on the Experienced only place but also vary from and Popularity of Doctors like as General Practitioner or Specialized
Experienced of doctors.
The amount is Tk.5.00 lac for new Doctors. graduates& tk. 25.00 lac for group of 5 The loan limit is Tk. 5.00 lac to 10.00 doctors. The Maximum period is 5 years. lac. The duration of the loan is Maximum 4 years for General Practitioner and 5 years for Specialized Doctors.
IBBL does not hold an Exceptional Prime Schemes for the people who
Bank
Limited
offer
an
are Exceptional Loan for the people who are interested in Share Market Business called Advance against Share.
interested in Share Market Business.
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CHAPTER 7: PROBLEMS OF WELFARE INVESTMENT SCHEMES OF IBBL
7.1 Problems Identified In Welfare Investment Schemes:

Although Islami Bank Bangladesh Ltd. (IBBL) has been the number one profitable in Bangladesh for the last five years but it has also got some limitations. These limitations exist in the operations, management and environment of the Bank. The limitations, which are found in the period of my internship, are given below: Household Durable Scheme Outlook: it is a good investment scheme of IBBL. But it seems to me that the rate of return is high i.e. 19% which is complicated to pay back .for this reason general people can not take it easily. Many people can not get facility of that scheme of IBBL. The procedure of taking investment is very long. How to overcome it: if the bank imposes low rate of profit and short procedure of taking investment then many people can take the opportunity of that scheme of IBBL. Investment Scheme For Doctors Outlook: it is a good investment scheme of IBBL. By taking funds new doctors are buying modern medical instrument and opening the chamber for giving treatment to the patient. How to overcome it: So bank should provide big portion of investment under this scheme. Then more new doctors will commence their service to patient and countrys people will get more service form the doctors. Small Business Investment Scheme Outlook: Bangladesh is a third world developing country and its economy based on agriculture .so small business investment scheme is very suitable for this country. Many people are opening their small business by making investment of that scheme form IBBL.
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How to overcome it: So I think that it is a very good investment scheme for this country and the portion of amount should increase in that scheme. Housing Investment Scheme: Outlook: it is very good investments scheme for house fewer clients. But it seems to me that the profit rate is high and many people cannot take it form bank. How to overcome it: So profit rate should be reduced and then many people will able to take it form bank. Real Estate Investment Program Outlook: it is a good idea and a good investment program for them whose are not accepted to get investment under house investment scheme. This type of people can take funds under real estate investment program. Transport Investment Program Outlook: Transport investment program is a good program. Under this program IBBL provides investment to the existed transport businessmen. But IBBL does not provide investment to the knowledgeable businessmen those are not existed. So in this case, existed businessmen who are rich, they become richer and who have no money or little money, they are not getting scope to compete in the transport market. So rich people are being richer and poor people are being poorer. How to overcome: I think that investment should not provide not only existed transport businessmen but also knowledgeable businessmen about transports.
Car Investment Scheme

Outlook: it is a good investment scheme of IBBL. Many mid level and high-level officers are not able to buy a car by giving full payment at a time. So they have a great opportunity to buy a car under this scheme. Under this scheme they buy a car.
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Rural Development Scheme Of IBBL Outlook: it is a good scheme of IBBL. Under this scheme rural people are taking investment form IBBL and they are developing their life day by day. They are being able to meet their lifes need. How to overcome: So it seems to me that the portion of amount of this scheme and the operation and rang should increase. Then more rural people will get the facility under this scheme. Agriculture Implements Investment Scheme Outlook: under this scheme poor farmers are getting funds for buying their agriculture instrument like power tiller, power pumps, shallow tube wells, thresher machine. Since our countrys economy is based on agriculture sector. So it is more suitable for our economy. I think that the scope of investment scheme should increase rapidly. Micro Industries Investment Scheme Outlook: it is also be a good investment scheme of IBBL. Entrepreneur of small business are taking investment under this scheme. Small business entrepreneurs are getting encouragement under this scheme and our countrys economy is being strong.
7.2 Problems, Regarding Investment Operations of IBBL:

Islamic Banking is a new phenomenon in our country during last two decades. So majority of our people have no proper knowledge about the activities of Islamic Banking as well as its investment mechanism hamper large scope of investment of IBBL. Most of the people in our country have a bad impression of IBBL, operations regarding indirect generation of interest which meaning no difference between investment of IBBL loan / Credit / advance of conventional banks for this reason, they are not too much interested to make investment with IBBL. Because of improper insufficient application of Islamic Banking rule in our country. The investment operations of IBBL can't run smoothly.
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IBBL, which is committed to avoid interest, cant invest the permissible part of its statutory liquidity Reserve and short Term liquidity surplus in those securities. This Bank can't invest in all economic sectors, which are prohibited by the law of Islam. Profitable investment portfolio of IBBL requires foresightment and clear investment knowledge according to Islamic shariah. But sometimes IBBL can't invest its assets in proper portfolio due to insufficient and unskilled manpower in these regards .As a result, there is a large amount of money being idle and thus potential profit is not increasing. This Bank revalues its investment operations within limited number of investment modes and does not initiate investment modes according to changing diverse needs. Sometimes investment operations of IBBL are hampered due to increase, dishonest, indiscreet, hypocritical nature of people. IBBL has no strong promotional activities to increase motivate its present and potential investment client IBBL does not grant investment portfolio for new entrepreneurs new businessmen new companies etc., which ultimately create "Class Banking. There are limited scopes to deal women entrepreneurs and professionals for making investment by women interpreters. In rural areas for low income community, this Bank grants investment an group not individual .as a result, the mission, using invested money in income generating activities so the poor needy population can become self reliant is failed. Moreover, it enhances group dependence. In some sectors like housing, real estate, project (industry) etc, this Bank disburses total invested money in times according to Banks pre-determined
proportion. As a result, Clients are failed to gain full benefits of investment disbursement at once.
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CHAPTER 8: POLICY SUGGESTIONS AND CONCLUSION

8.1 Policy suggestions:
IBBL can diffuse its scope of investment through focusing shariah concept regarding investment among the Bank officers; employer and the Clients by strong training, workshops and Clients get - together. This Bank should arrange a wide varieties of regular programs like "ISLAMIC JALSA" "OAAZ MAHFIL" "SEMINAR" "MOSQUE -BASED DISCUSSION" etc. about Islamic Banking Function countrywide to remove the negative impression about IBBL. IBBL will have to take effective steps to remove the MISCONCEPTIONS of Mass Peoples that they hold about Islamic Banking System. The authority of IBBL should Conveyance pressure on Government bodies to run proper and sufficient application of Islamic banking law in Bangladesh. Practice amount of doubtful income declined substantially during the year as compared to the past few years, indicating more carefulness of the Management in complying with Shariah. As a result, idle money will be invested to increase potential profit of this Bank. Inclusion of more subjects based on the Quran and Sunnah in the Training courses of the Islami Bank Training & Research Academy in order to develop human resources having morally. Arrangement of monthly /quarterly training courses /workshops for the clients selected by the Branches in order to promote Investment clients of the desired level. IBBL should initiates different investment modes according to changing /diverse needs of clients by conducting huge Research and study. IBBL should utilize "Internship Program" as one kind of promotion policy to encourage its present and potential investment clients. Because, young generation is the vital part of our economy. To do so this Bank should provides facilities to the internees through proper placement and practical operations as well as job
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certainty to those who bring introduce themselves the best performers in doing their particulars. IBBL should appoint a sufficient number of women employees to deal women entrepreneurs and professionals and understand their needs and thus create demand for investment. To fulfill the vision of "Mass banking" this Bank should grants investment portfolio to new entrepreneurs /new businessmen new companies etc. To gain success in the programs like "Poverty Alleviation and "Self Reliant" especially in rural areas, this bank should provides investment facilities on the basis of individual. The Bank should disburse total invested money at once to the clients to achieve full benefits of invested money. In the context of Bangladesh considering the necessity of Islami Banking system the Government should establish Mudaraba company/bank. According to Islamic Shariah call rate money system should be started. IBBL needs to finance the needy entrepreneur who has no money at all and they are newcomer in the business. We know the most important modes of investment are share mechanism but Islamic bank have no such strong application of that mode though theoretical use of share mechanism is so wide. The Bank should go for investment in large-scale dairy farming and other milk processing projects and poultry farming which is not worth mentioning at present. The quantum of Banks investment against fishing is very negligible. There is scope for investment in : Shrimp culture. Sweet water fishery including pond fishery. Marine fishing.
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The Banks investment for construction purpose shall continue to be made within the ceiling prescribed in the Plan. Presently the Banks export Investment is mostly centered in readymade garments and the Bank is yet to enter into the area of investment in major traditional and non-traditional exportable items like jute & jute goods, frozen foods, hosiery products, tea, leather and leather products knitwear (Textile), basic chemical products/pharmaceuticals, electric goods (wires and cables), electronic
goods/components, handicrafts, fruit juice concentration projects (small and medium scale only), other. Besides the existing items of import, the Bank should go for investment in import in the following areas : CDSO being imported by edible refineries. Cotton yarn, Coal and hard coke. Fresh fruits, Dry fruits. Spices, Pulses and Onions. C.I. sheets, B.P. sheets Motor vehicles
Investment against real estate of the Bank shall continue to be made within the ceiling prescribed in the plan. The banks investment against agriculture, fishery, forestry and working capital investment are not significant compared to other private commercial banks. As such, the Bank shall make attempt for extension of investment in these sectors.
Bulk investment of all banks (nationalized commercial banks and private
commercial banks) is in the hand of limited number of borrowers, though the position of Islami Bank is to some extent better, yet efforts need to be made for further diversification of investment by size of investment accounts and concentration of investment in the hands of limited few clients is to be avoided.
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8.2 Concluding remarks:

The prohibition of Riba (fixed interest) makes Islamic banking different from Traditional banking. Of course, the investments of an Islamic bank must be channeled to the Islamic Shariah approved sectors. IBBL should more diversify its investment portfolio by size of investment, by sector of investment, viz. industrial, commercial, agricultural and by geographical area. This diversification will ensure mutual benefit both for the bank and the investment-client. The bank extends investment under the principles Murabaha, Bai-Muazzal, Hire Purchase Shirkatul Melk and Musharaka. The bank is making sincere efforts to go for investment under Murabaha and Musharaka principle in near future. The phenomenal growth of Islamic banks has attracted the attention of bankers, business community and Bank customers. IBBL is one of the reputed banks in our country; they are doing business for a long time. As the competition in the commercial banking sector is increasing rapidly, so for the existence or to improve present position the bank should provide better and quality service to the customers. IBBL, since its inception, has been working for the upliftment and emancipation of the underprivileged, downtrodden and neglected sections of the populace and has taken up various schemes for their well-being. The objectives of these schemes are to raise the standard of living of low-income group, development of human resources and creation of avenue for self-employment. Islami bank Bangladesh limited, being welfare oriented banking institution has by now designed and implemented thirteen investment schemes keeping in view the needs of different sectors and various sections of people for their socio-economic upliftment and to improve their quality of life. All of the welfare schemes so far introduced have gained popularity and received wide response of the general masses and is also being appreciated by the intellectual classes of the society.
85 Welfare

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EXECUTIVE SUMMARY

Investment Schemes of Islami Bank Bangladesh Limited

Investment Schemes of Islami Bank Bangladesh Limited

Investment Schemes of Islami Bank Bangladesh Limited

Investment Schemes of Islami Bank Bangladesh Limited

1.2 Background of the study

Investment Schemes of Islami Bank Bangladesh Limited

1.3 Objective of the study:

1.4 Scope of the study

These two sources are as following: Primary source Secondary source

Investment Schemes of Islami Bank Bangladesh Limited

5. Desk report of the related department.

1.6 Limitations of the study:

Investment Schemes of Islami Bank Bangladesh Limited

CHAPTER 2: AN OVERVIEW OF IBBL

Investment Schemes of Islami Bank Bangladesh Limited

2.2 The relationship between Banking system and Islam.1

BANKING &FINANCIAL ACTIVITIES

Fig: The Relation Ship between Banking System and Islam.

Source: Arif, M (1982).

Investment Schemes of Islami Bank Bangladesh Limited

2.3 Review of literature

Investment Schemes of Islami Bank Bangladesh Limited

2.5 Definition of an Islamic Bank

2.6 Differences between CONVENTIONAL BANK AND ISLAMIC BANK4

Investment Schemes of Islami Bank Bangladesh Limited

2.7 Difference between Riba (Interest) and Profit.

2.7.2 Riba in the Holy Quran:5

Investment Schemes of Islami Bank Bangladesh Limited

2.8 Shariah Council of the Bank

Investment Schemes of Islami Bank Bangladesh Limited

2.9 Misconceptions about Islamic Banking:7

2.10 Back Ground and Status of IBBL

Investment Schemes of Islami Bank Bangladesh Limited

2.11 Corporate Information: 31.12.2006

Investment Schemes of Islami Bank Bangladesh Limited

2.12 Scope of Business

2.13 Nature of Business

2.14 Principle Products or Services

2.14.1 Deposit Products:

Investment Schemes of Islami Bank Bangladesh Limited

2.14.2 Investment Products:

2.14.3 Foreign Exchange:

2.15 Objectives of IBBL:

Investment Schemes of Islami Bank Bangladesh Limited

2.16 Mission of IBBL

2.17 Vision of IBBL

2.18 Functions of IBBL

Investment Schemes of Islami Bank Bangladesh Limited

2.19 Business Philosophy of IBBL

Investment Schemes of Islami Bank Bangladesh Limited

CHAPTER 3: INVESTMENT POLICY

3.2 Objectives and Principles

Investment Schemes of Islami Bank Bangladesh Limited

3.3 Importance of Assessing of Investment Needs:

Investment Schemes of Islami Bank Bangladesh Limited

3.4 Induction of Investment Clients

Investment Schemes of Islami Bank Bangladesh Limited

Investment Schemes of Islami Bank Bangladesh Limited

3.6 The 5-year perspective investment plan from 2003-2007

Investment Schemes of Islami Bank Bangladesh Limited

CHAPTER 4: MODES OF INVESTMENT

Investment Schemes of Islami Bank Bangladesh Limited