Category Archives: Islamic Banking/Finance

ICB Islamic Bank launches home, auto finance facility

ICB Islamic Bank launches home, auto finance facility

To mark the launching of ICB Islamic Home Finance & Auto Finance, ICB Islamic Bank Limited organised a ceremony at a city hotel recently, the company said in a statement.

REHAB President Tanveerul Haque Probal inaugurated the launching programme as the chief guest.

Member of the board of directors of ICB Islamic Bank Limited Abdul Hafiz Chowdhury, Managing Director of Consumer Banking of ICB Group Al Alagappan and Managing Director and CEO of ICB Islamic Bank Masihul Huq Chowdhury and Head of Consumer Banking of ICB Islamic Bank Nafeez Sharafat Chowdhury were present at the launching ceremony.

Under the home finance facility, an applicant could take finance up to Tk 7.5 million for a maximum period of 20 years for purchasing apartment, home extension or renovation.


IBBL deposit marks 22pc growth

IBBL deposit marks 22pc growth

The total deposit of Islami Bank Bangladesh Limited (IBBL) has reached at Tk 234.343 billion as on September 30, ’09, showing the growth rate of 22 per cent against the same period of last year.

The total investment reaches at Tk 219.705 billion. The bank handled foreign exchange business amounting to Tk 331.217 billion including import of Tk 111.854 billion, export of Tk 78.479 billion and remittance of Tk 140.884 billion.

This was disclosed at a Performance Review Meeting of the bank held in the city Saturday, said a press release.

Chairman of the board of directors of the bank Prof Abu Nasser Muhammad Abduz Zaher was present at the meeting as the chief guest, while Managing Director M Fariduddin Ahmad presided over it.

Vice Chairman of the board of directors Engr Mustafa Anwar and Chairman of the Audit Committee of the bank Md Shahidul Islam attended various working sessions of the inaugural ceremony as the chief guests.

Among others, deputy managing directors Mohd Shamsul Haque, Mohammad Abdul Mannan, Md Habibur Rahman and Md Setaur Rahman were present at the meeting.

Top executives of Head office and Zonal Heads of the bank were also present at the meeting.

IBBL opens 201st branch in Ctg

IBBL opens 201st branch in Ctg

Islami Bank Bangladesh Limited (IBBL) is the first interest-free bank of the country and it has achieved enormous success in deposit, investment and profit taking welfare-oriented activities to continue this progress.

IBBL Managing Director M Fariduddin Ahmad made the comment while inaugurating the 201st branch of the bank at MM Tower on OR Nizam Road in Chittagong Sunday, said a press release.

President of Bangladesh Medical Association in Chittagong Dr Golam Mortuza was present as the special guest while Head of Chittagong Zone and Executive Vice President of IBBL Abul Hossain presided over the function.

Speaking on the occasion, Mr Fariduddin said the IBBL was established to set up Islamic economics in the country, free from bad effect of usury. Many other banks had started Islamic banking activities following IBBL. This was undoubtedly IBBL’s success, he said.

IBBL Assistant Vice-President and Branch Manager ASM Rezaul Karim, Managing Director of Meridian Group ASM Kamal Pasha, Managing Director of Hera Holdings Neazer Rahman, Adviser of Chittagong Stock Exchange Abu Bakar Siddique and Editor and Publisher of Dainik Karnaphuli Afsar Uddin Chowdhury also spoke on the occasion.

On the occasion, a seminar on ‘Islamic Economics and Banking’ was organised by OR Nizam Road branch of IBBL on the branch premises.

Islami Bank opens 20th SME service centre

Islami Bank opens 20th SME service centre

FE Report

Islami Bank Bangladesh Ltd (IBBL) opened its 20th SME service centre at Sonargaon of Narayanganj Wednesday, said a press release.

Chairman of IBBL Executive Committee Md Eskander Ali Khan inaugurated the new SME service centre as the chief guest.

Managing Director of the bank M Fariduddin Ahmad presided over the inaugural function.

Robert Smith, manager of RPCF, DFID, Md Mosharraf Hossain, chairman and Kohinur Islam Ruma, vice-chairman of Sonargaon Upazila Parishad, were present as special guests on the occasion.

IBBL Deputy Managing Director and Head of Investment Wing Mohammad Abdul Mannan delivered the welcome speech at the function.

Md Eskander Ali Khan, in his speech, said IBBL has been working for the welfare of people. The bank has taken various steps to make poor people financially solvent.

Islamic banking to have separate laws

Islamic banking to have separate laws . Dhaka

The finance minister has said there will be separate laws to govern general banking and Islamic banking in Bangladesh.

‘A recent cabinet meeting in principle approved the draft amended insurance law,’ AMA Muhith told reporters on Tuesday after a meeting with the Bangladesh Insurance Association representatives at the Economic Relations Division office.

‘The standing committee related to the finance ministry is now looking at it closely and after review, the draft law will be presented in parliament for passage.

‘The draft mentions separate laws for governing the two insurance genres—Islamic and general. Similarly, separate and dedicated legal regimes will be formulated and put in place.’

Muhith said it has not been right to merge Islamic banking and general banking, he said. Both banking systems are facing glitches while being administered under the uniform legal regime.

Separate laws will be made to get rid of these anomalies, he reiterated.

Asked if the amended insurance act will be approved in the current parliamentary session, the minister said, ‘The session is a very brief one, so, we’ll have to see what all can be squeezed in.’

Bangladesh Insurance Association chairman Rafiqul Islam headed the insurers in the meeting.

IBBL deposit rate posts 21pc growth

IBBL deposit rate posts 21pc growth

The total deposit of Islami Bank Bangladesh Limited (IBBL) has reached at Tk 228.23 billion on August 31, 2009, showing the growth rate of 21 per cent against the same period of last year, said a press release.

The total investment reached at Tk 217.66 billion. The Bank handled foreign exchange business amounting to Tk 295.34 billion including imports worth Tk 100.47 billion, export Tk 70.04 billion and collected remittance worth Tk 124.83 billion.

This was disclosed at a performance review meeting of top executives of head office and heads of three zones of Dhaka city and branch managers’ at the IBBL head office in the city Saturday.

Managing Director of the bank M Fariduddin Ahmad presided over the meeting while IBBL deputy managing directors Mohd Shamsul Haque, Mohammad Abdul Mannan and Md Setaur Rahman were present on the occasion.

M Fariduddin Ahmad emphasised on finding out new investment sectors and to diversify investment. The managers and workers have to work ceaselessly for development and advancement of economy of the country. He called upon all to avoid bad investment and inspire good investment.

Islamic bank assets up sharply despite turmoil

Islamic bank assets up sharply despite turmoil

Agence France-Presse . Singapore

Assets held by the world’s 100 biggest Islamic banks grew 66 per cent in 2008 from the previous year despite the financial turmoil that clobbered mainstream lenders, a report said Friday.

The top 100 Islamic banks held assets totalling 580 billion US dollars last year, up from 350 billion dollars in 2007, according to an annual report by The Asian Banker, a magazine for financial professionals.

In the same period, Asia’s 300 biggest banks saw their assets rise by a much slower 13.4 per cent, it said.

A financial storm sparked by a crisis in the US housing market swept across the world late last year. Its impact spilled over into the general economy and sent several countries into recession.

Prominent US investment bank Lehman Brothers collapsed into bankruptcy, while several other major Western banks suffered massive losses.

‘Despite the financial turmoil in late 2008 that crippled so many large Western institutions, Islamic banks have continued to grow in prominence and size,’ the magazine said in a press statement.

Emmanuel Daniel, the magazine’s president and chief executive, added: ‘Islamic finance has seen an incredible surge in popularity, based on stronger regulatory regimes and a better international understanding of its dynamics.’

Islamic banking fuses principles of sharia or Islamic law and modern banking. Islamic funds are banned from investing in companies associated with tobacco, alcohol or gambling.

Iranian banks were the biggest players in the global Islamic banking sector, holding seven out of the top 10 rankings and 12 out of the 100, but Saudi Arabian lenders were more profitable, the report said.

Saudi Arabia’s Al Rajhi Bank had the highest net income of 1.74 billion dollars, which is more than five times the earnings of Bank Tejarat, Iran’s most profitable lender.

Iranian banks also took up 40 per cent of the total assets of the top 100 banks, with the UAE, Malaysia, Saudi Arabia and Kuwait accounting for a combined 40 per cent. Smaller banks in 10 other markets accounted for the rest.

Outside of the Middle East, two Islamic banks in Britain made it to the top 100, according to the report.

Asian and North African banks ‘are still very small’ compared with the Middle Eastern players, it said, adding that ‘only Malaysian and Bangladeshi Islamic banks have a significant amount of assets’.

Indonesia, the world’s most populous Muslim nation, had only two banks on the list, Pakistan had three, while regional financial centre Singapore and the Malay Islamic kingdom of Brunei had one each.