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    WElfare Investment Scheme of IBBL

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    Mahibul Hasan
    This document summarizes a study on the welfare investment schemes of Islami Bank Bangladesh Limited (IBBL). The objectives of the study are to evaluate IBBL's investment policy, modes of investment, and different investment schemes. It also aims to identify problems and recommendations. IBBL operates using Shariah principles and offers various welfare investment schemes targeted at sectors like housing, agriculture, and small businesses. The study finds that greater awareness of Islamic banking is needed among the public and that IBBL could diversify its portfolio and expand into new sectors. It concludes that IBBL works to uplift underprivileged communities through its schemes and has implemented thirteen investments programs to improve peoples' livelihoods in a Shariah-compliant manner

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    WElfare Investment Scheme of IBBL

    Uploaded by

    Mahibul Hasan
    273 views21 pages
    This document summarizes a study on the welfare investment schemes of Islami Bank Bangladesh Limited (IBBL). The objectives of the study are to evaluate IBBL's investment policy, modes of investment, and different investment schemes. It also aims to identify problems and recommendations. IBBL operates using Shariah principles and offers various welfare investment schemes targeted at sectors like housing, agriculture, and small businesses. The study finds that greater awareness of Islamic banking is needed among the public and that IBBL could diversify its portfolio and expand into new sectors. It concludes that IBBL works to uplift underprivileged communities through its schemes and has implemented thirteen investments programs to improve peoples' livelihoods in a Shariah-compliant manner

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    WElfare Investment Scheme of IBBL(1)

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    This document summarizes a study on the welfare investment schemes of Islami Bank Bangladesh Limited (IBBL). The objectives of the study are to evaluate IBBL's investment policy, modes of investment, and different investment schemes. It also aims to identify problems and recommendations. IBBL operates using Shariah principles and offers various welfare investment schemes targeted at sectors like housing, agriculture, and small businesses. The study finds that greater awareness of Islamic banking is needed among the public and that IBBL could diversify its portfolio and expand into new sectors. It concludes that IBBL works to uplift underprivileged communities through its schemes and has implemented thirteen investments programs to improve peoples' livelihoods in a Shariah-compliant manner

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    273 views21 pages

    WElfare Investment Scheme of IBBL

    Uploaded by

    Mahibul Hasan
    This document summarizes a study on the welfare investment schemes of Islami Bank Bangladesh Limited (IBBL). The objectives of the study are to evaluate IBBL's investment policy, modes of investment, and different investment schemes. It also aims to identify problems and recommendations. IBBL operates using Shariah principles and offers various welfare investment schemes targeted at sectors like housing, agriculture, and small businesses. The study finds that greater awareness of Islamic banking is needed among the public and that IBBL could diversify its portfolio and expand into new sectors. It concludes that IBBL works to uplift underprivileged communities through its schemes and has implemented thirteen investments programs to improve peoples' livelihoods in a Shariah-compliant manner

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 21

    WELFARE INVESTMENT SCHEMES OF ISLAMI BANK BANGLADESH LIMITED

    Prepared By:
    Muhammed Akhter Jamil Roll No. : 326 EMBA Program for Engineers Semester: 3rd Semester

    Department of Business Administration University of Science and Technology Chittagong.

    Objectives of the Study


    The main objective of education is to acquire knowledge. The Secondary Objectives of the Reports are : 1. To find out the Investment Policy of IBBL as well as its pros and cons. 2. To evaluate the Investment Modes of IBBL and its effectiveness. 3. To evaluate Different investment Schemes of IBBL. 4. To find out problems and possible remedies of IBBL.

    Methodology of The Study


    The Primary Sources of Information : Direct observation Investment Outlook Questioning the concerned persons

    The Secondary Sources of Information :


    Web Site of IBBL Different reference books and journal Annual report of IBBL Other manual information Desk report of the related department

    Back Ground 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 South-East 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. They 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.

    Modes of Investment
    Bai Mode (Trading): Bai Murabaha Bai Muazzal Bai Salam Bai Istishnaa

    Ijarah Mode (Leasing): Hire purchase (Ijarah) Hire purchase under Shirkatul Melk Share Mode: Mudaraba Musharakah

    Welfare Investment Schemes of Islami Bank Bangladesh Limited


    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

    Welfare Investment Schemes of Islami Bank Bangladesh Limited

    Source: Annual Report of IBBL 2012

    Financial Overview of IBBL


    Segment Information:

    Source: Annual Report of IBBL 2012

    Financial Overview of IBBL


    Segment Information:

    Source: Annual Report of IBBL 2012

    Financial Overview of IBBL


    Graphical Representation:

    Source: Annual Report of IBBL 2012

    Financial Overview of IBBL


    Graphical Representation:

    Source: Annual Report of IBBL 2012

    Financial Overview of IBBL


    Horizontal & Vertical Analysis:

    Source: Annual Report of IBBL 2012

    Financial Overview of IBBL


    Profitability, Dividend, Performance and Liquidity Ratios :

    Source: Annual Report of IBBL 2012

    Financial Overview of IBBL


    Distribution of Value Addition:

    Source: Annual Report of IBBL 2012

    Findings of the Study


    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. 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.

    Findings of the Study


    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.

    Policy Suggestions of the Study


    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. IBBL will have to take effective steps to remove the Misconceptions of Mass Peoples that they hold about Islamic Banking System. IBBL should initiates different investment modes according to changing /diverse needs of clients by conducting huge Research and study. 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.

    Policy Suggestions of the Study


    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. 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.

    Conclusion
    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. 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. 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.

    THANK YOU

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