Diffrerent Modes Of Investment of IBBL-BUBT

DIFFERENT MODES OF INVESMENT

OF ISLAMI BANK BANGLADESH LIMITED

BUBT

BUBTPRESENTED BY: AL-AMIN HOSSAIN ID-10112101476 BBA PROGRAM, 24TH INTAKE DEPARTMENT OF FINANCE

• Objective of the report• Methodology of the report• Limitation of the report• Islamic vs conventional

bank• Corporate profile• Theoretical aspect• Analysis.• Comparative analysis• Findings • reccomandation

To analyze different modes of investment.To seek out all the strengths, weaknesses, opportunities & threats.To compare with other conventional banks.To familiarize with the various investment schemes.To get the practical exposure of the banking activities.To adapt with the corporate environment.

1.Research

Design

METHODOLOGY

2. Data collection method

a) Primary source Branch Manager &

Second Officer. Face to face

conversation with employees and staffs.

Practical work experience.

Face to face conversation with clients.

METHODOLOGY

b) Secondary source Annual Report of Islami

Bank Bangladesh Limited. Various prescribed forms of

investment were analyzed. IBTRA Library. Manuals of Investment of

IBBL. Different text books &

materials. Website of the Islami Bank

Bangladesh Limited.

METHODOLOGY

Lack of experiences has acted as constraints in the way of

meticulous exploration on the topic.

Unpublished data have not considered for the study.

Shortage of time for preparing the report in order.

The study was conducted mostly on secondary data.

Limitations of the Report

Islamic Banking: A banking system that is based on the

principles of Islamic law (also known Shariah) and guided by Islamic economics. Two basic principles behind Islamic banking are the sharing of profit and loss and, significantly, the prohibition of the collection and payment of interest. Collecting interest is not permitted under Islamic law

ISLAMIC BANKING

ISLAMIC BANKING VS CONVENSIONAL BANKING

ISLAMI BANK BANGLADESH

LIMITED

In August 1974, Bangladesh signed the Charter of Islamic Development Bank and committed itself to reorganize its economic and financial system as per

Islamic Shari’ah.

Earlier in November 1980, Bangladesh Bank, the country’s Central Bank, sent a representative to study

the working of several Islamic banks abroad

In November 1982, a delegation of IDB visited Bangladesh and showed keen interest to participate

in establishing a joint venture Islamic Bank in the private sector.

Islami Bank Bangladesh limited was established in March 1983 and started its operation in 27th March,

1983

• To conduct interest-free banking.• To invest on profit and risk sharing basis.• To accept deposits on Mudaraba & Al-Wadeah 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 enlistment.• 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.• To contribute in achieving the ultimate goal of Islamic economic

systems• To establish a well-balanced economic system.

OBJECTIVES OF IBBL

ZONE OF IBBL

ORGANIZATIONAL INFORMATION

BDT (Tk.) US Dollar ($)

Authorized Capital 20,000.00 Million 257.23 Million

paid-up Capital 14,636.28 Million 188.25 Million

Equity 45,511.90 Million 385.36 Million

Reserve Fund 29,149.01Million 374.91 million

Deposits 473,140.96 Million 6,085.41 Million

Investment(including Investment in Shares)

474,015.95 Million 6,096.67 Million

Foreign Exchange Business BDT (Tk.) US Dollar ($)

Import 285,890 Million 3,677.04 Million

Export 205,269 Million 2,640.12 Million

Remittance 286,956 Million 3,690.75 Million

FINANCIAL INFORMATION

a) Deposit Schemesb) Investment Modesc) Special Schemee) ATM Servicesf) Special Servicesg) Foreign Exchange Business

PRODUCT & SERVICES

FUNCTIONS OF IBBL

• To maintain all types of deposit accounts.• To make investment.• To conduct foreign exchange business.• To conduct social welfare activities through Islami Banking

Foundation

MODES OF INVESTMENT OF IBBL

ANALYSIS

Year Wise Deposits & growth rate of deposit of IBBL

2009 2010 2011 2012 20130.00%

5.00%

10.00%

15.00%

20.00%

25.00%

20.45% 20.87% 19.50%17.10%

22.23%

Growth Rate of Year Wise Deposit

Gro

wth

Rat

e In

Per

cen

t-ag

e

Years

Year 2009 2010 2011 2012 2013

Amount (TK in

Millions)

202115 244292 291,935 341853 417844

Growth Rate(%) 20.45% 20.87% 19.5% 17.10% 22.23%

Table 5.1: Amount of Deposit and Deposite growth rate of IBBL source: Annual Report of IBBL (2009-2013)

Figure 5.1: Year wise Amount of Deposit of IBBL

Figure 5.2: Year wise Deposit Growth Rate of IBBL

Year Wise Investment to Deposit Ratio Analysis

Year Ratio

2009 89.08%

2010 87.85%

2011 90.17%

2012 87.29%

2013 85.18%

2009 2010 2011 2012 201382.00%

83.00%

84.00%

85.00%

86.00%

87.00%

88.00%

89.00%

90.00%

91.00%

89.08%

87.85%

90.17%

87.29%

85.18%

Investment to Deposit Ratio

Investment to Deposit Ratio

Table 5.2 : Investment to Deposit Ratio of IBBLSource: Annual Report of IBBL (2009-2013)

Figure 5.3: Investment to Deposit Ratio of IBBL

Year Wise Investment & Growth Rate

2009 2010 2011 2012 20130.00%5.00%

10.00%15.00%20.00%25.00%30.00%

24.24%19.20%

22.65%

16.19%

21.93%

Growth Rate Investment

Growth Rate Investment

Year 2009 2010 2011 2012 2013

Amount(TK in

Millions)

1,80,054 2,14,616 2,63,225 3,05,841 3,72,921

Growth Rate(%) 24.24% 19.20% 22.65% 16.19% 21.93%

Table: 5.3: Year Wise Investmentssource: Annual Report of IBBL (2009-2013)

Figure-5.4: Year Wise Investments of IBBL

Figure- 5.5 : Investment Growth Rate of IBBL

Modes Wise Investment in 2013Mode Amount in Million Taka %of total investment

Murabaha 2,21,632 59.43%

Musaraka 13,719 3.68%

Bai-Salam 4,532 1.22%

HPSM 96,056 25.76%

Bai-Muajjal 18,295 4.91%

Bill Purchased & Nagotiation 9,531 2.56%

Quard 9,156 2.46%

Mudaraba 0 0.00%Table: 5.4 Year Wise Trend of Mode Wise Investment in 2013

Source: Annual Report (2013)

Figure-5.6: Mode Wise Investment of IBBL in 2013 (in Million Taka and Percentage)

TREND OF MODE WISE INVESTMENT 2009 TO 2014

Investment in Bai Murabaha

2009 2010 2011 2012 201350.00%52.00%54.00%56.00%58.00%60.00%

53.44%54.60% 55.52%

57.92%59.43%



Year 2009 2010 2011 2012 2013

Investment in Murabaha (Million tk.) 96,2,17 117180 146135 177136 221632

Percentage of Total Investment 53.44% 54.60% 55.52% 57.92% 59.43%

Table: 5.5 Year Wise Investment in Bai MurabahaSource: Annual Report (2009-2013)

Figure-5.7: Year Wise Investment in Bai Murabaha (Million Tk)

Figure-5.8 Percentage of Investment in Murabaha

Investment in HPSM

2009 2010 2011 2012 20130.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00% 35.08% 34.42%

30.42% 29.12%25.76%

Percentage of Investment in HPSM

Trend of Percentage of Total Investment in HPSM

Year 2009 2010 2011 2012 2013

Investment in HPSM (Million tk.) 63159 73871 80093 89070 96056


Table: 5.6 Year Wise Investment in HPSM

Figure-5.9 Year Wise Investment in HPSM (Million tk.)

Figure-5.10: Percentage of Investment in HPSM

Investment in Bai Mujjal

2009 2010 2011 2012 20130.00%1.00%2.00%3.00%4.00%5.00%6.00%

3.64% 3.41%

4.71% 5.20% 4.91%

Percentage of Investment in Bai Mujjal

Trend of Percentage of Total In-vestment in Bai Mujjal

Year 2009 2010 2011 2012 2013

Investment in Mujjal (Million tk.) 6550 7318 12393 15912 18296


Table: 5.7: Year Wise Investment in Bai MujjalSource: Annual Report (2009-2013)

Figure-5.11: Amount of Investment in Bai Mujjal

Figure-5.12: Percentage of Investment in Bai Mujjal

Investment in HPSM

2009 2010 2011 2012 20130.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00% 35.08% 34.42%

30.42% 29.12%25.76%

Percentage of Investment in HPSM

Trend of Percentage of Total In-vestment in HPSM

Year 2009 2010 2011 2012 2013

Investment in HPSM (Million tk.) 63159 73871 80093 89070 96056


Table: 5.6 Year Wise Investment in HPSM

Figure-5.9 Year Wise Investment in HPSM (Million tk.)

Figure-5.10: Percentage of Investment in HPSM

Investment in Bai Mujjal

2009 2010 2011 2012 20130.00%1.00%2.00%3.00%4.00%5.00%6.00%

3.64% 3.41%

4.71%5.20% 4.91%

Percentage of Investment in Bai Mujjal

Trend of Percentage of Total In-vestment in Bai Mujjal

Year 2009 2010 2011 2012 2013

Investment in Mujjal (Million tk.) 6550 7318 12393 15912 18296


Table: 5.7: Year Wise Investment in Bai MujjalSource: Annual Report (2009-2013)

Figure-5.11: Amount of Investment in Bai Mujjal

Figure-5.12: Percentage of Investment in Bai Mujjal

Investment in Bill Purchase & Nego

2009 2010 2011 2012 20130.00%1.00%2.00%3.00%4.00%5.00%6.00%

5.68% 5.26%

1.95%0.91%

2.56%

Percentage of Investment in Bill Purchase & Nego

Trend of Percentage of Total Investment in Bill Purchase & Nego

Year 2009 2010 2011 2012 2013

Investment in Bill Purchase & Nego

(Million tk.)

10223 11289 5141 2744 9531


Table: 5.8: Year Wise Investment in Bill Purchase & NegoSource: Annual Report (2009-2013)

Figure-5.13: Amount of Investment in Bill Purchase & Nego

Figure-5.14: Percentage of Investment in Bill Purchase & Nego

Investment in Quard E Hasana

2009 2010 2011 2012 20130.00%0.50%1.00%1.50%2.00%2.50%3.00%

1.19% 1.32%0.80%

1.83%

2.46%

Percentage of Investment in Quard E Hasana

Trend of Percentage of Total Investment in Quard E Hasana

Year 2009 2010 2011 2012 2013

Investment in Quard E Hasana (Million tk.) 2151 2833 2095 5614 9156

Percentage of Total Investment 1.19 1.32% 0.80% 1.83% 2.46%

Table: 5.9 Year Wise Investment in Quard E HasanaSource: Annual Report (2009-2013)

Figure-5.15: Amount of Investment in Quard E Hasana

Figure-5.16 : Percentage of Investment in Quard E Hasana

Investment in Bai Salam

2009 2010 2011 2012 20130.00%0.20%0.40%0.60%0.80%1.00%1.20%1.40%1.60%

0.95% 0.97%

1.38%1.15% 1.22%

Percentage of Total Investment in Bai Salam

Trend of Percentage of Total Investment in Bai Salam

Year 2009 2010 2011 2012 2013

Investment in Bai Salam (Million tk.) 1719 2082 3624 3528 4532


Table: 5.10: Year Wise Investment in Bai SalamSource: Annual Report (2009-2013)

Figure-5.17: Amount of Investment in Bai Salam

Figure-5.18: Percentage of Investment in Bai Salam

Investment in Mudaraba

2009 2010 2011 2012 20130.00%0.10%0.20%0.30%0.40%0.50%0.60%0.70%0.80%

0.00% 0.00%

0.57%

0.74%

0.00%

Percentage of Total Investment in Mudaraba

Trend of Percentage of Total In-vestment in Mudaraba

Year 2009 2010 2011 2012 2013

Investment in Mudaraba (Million tk.) - 0 1500 2266 -

Percentage of Total Investment - 0.00% 0.57% 0.74% 0.00%

Table: 5.11: Year Wise Investment in MudarabaSource: Annual Report (2009-2013)

Figure-5.19: Amount of Investment in Mudaraba

Figure-5.20: Percentage of Investment in Mudaraba

Investment in Musharaka

2009 2010 2011 2012 20130.00%

1.00%

2.00%

3.00%

4.00%

5.00%

0.02% 0.02%

4.65%

3.13%3.68%

Percentage of Investment in Musharaka

Trend of Percentage of Total In-vestment in Musharaka

Year 2009 2010 2011 2012 2013

Investment in Musharaka (Million tk.) 35 43 12244 9571 13719


Table: 5.12: Year Wise Investment in MusharakaSource: Annual Report (2009-2013)

Figure5.21: Amount of Investment in Musharaka

Figure-5.22: Percentage of Investment in Musharaka

Sector Wise Investment in 2013Sector Industry Commerce Real

Estate

Agriculture Transport SME

Amount (TK in

Millions)

108930 44488 23231 20992 6887 168393

In percentage 29.21% 11.26% 5.46% 5.78% 1.90% 46.39%

Table: 5.13: Sector Wise Investment in 2013Source: Annual Report (2013)

Figure-5.23: Sector Wise Investment of IBBL in 2013 (in Million Taka and Percentage)

TREND OF SOME SECTOR WISE INVESTMENT OF IBBL

Industry Investment

2009 2010 2011 2012 20130.00%

10.00%20.00%30.00%40.00%50.00%60.00% 55.11%

47.07% 43.30% 39.98%29.21%

Percentage of Total Investment in Industry

Trend of percentage of Total Investment in Industry

Year 2009 2010 2011 2012 2013

Investment in Industry (Million tk.) 99233 101020 113979 122270 108930


Table: 5.14: Year Wise Trend of some Industry investment of IBBLSource: Annual Report (2009-2013)

Figure-5.24: Amount of Investment in Industry

Figure-5.25: Percentage of Investment in Industry

Commerce Investment

2009 2010 2011 2012 20130.00%5.00%

10.00%15.00%20.00%25.00%30.00%

28.51%

17.47% 17.53%12.50% 11.26%

Percentage of Total Investment in Commerce

Trend of Percentage of Total In-vestment in Commerce

Year 2009 2010 2011 2012 2013

Investment in Commerce (Million tk.) 51332 37502 46142 38234 44448


Table: 5.15: Year Wise Commerce InvestmentSource: Annual Report (2009-2013)

Figure-5.26: Amount of Investment in Commerce

Figure-5.27: Percentage of Investment in Commerce

Real Estate Investment

2009 2010 2011 2012 20130.00%1.00%2.00%3.00%4.00%5.00%6.00% 5.65%

4.03% 4.31%

5.55% 5.46%

Percentage of Total Investment in Real Estate

Trend of Percentage of Total In-vestment in Real Estate

Year 2009 2010 2011 2012 2013

Investment in Real Estate (Million tk.) 10172 8649 11336 16966 23231


Table: 5.16: Year Wise Real Estate InvestmentSource: Annual Report (2009-2013)

Figure-5.28: Amount of Investment in Real Estate

Figure-5.29: Percentage of Investment in Real Estate

Agriculture Investment

2009 2010 2011 2012 20130.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%

5.06%6.55%

5.41%6.84%

5.78%

Percentage of Total Investment in Agriculture

Trend of Percentage of Total In-vestment in Agriculture

Year 2009 2010 2011 2012 2013

Investment in Agriculture (Million tk.) 9110 14057 14252 20923 20992


Table: 5.17: Year Wise Agriculture InvestmentSource: Annual Report (2009-2013)

Figure-5.30: Amount of Investment of Agriculture

Figure-5.31: Percentage of Investment in Agriculture

Transport Investment

2009 2010 2011 2012 20130.00%0.50%1.00%1.50%2.00%2.50%

2.27%

1.64% 1.74%2.11%

1.90%

Percentage of Investment in Transport

Trend of Percentage of Total Investment in Transport

Year 2009 2010 2011 2012 2013

Investment in Transport (Million tk.) 4082 3520 4583 6457 6887


Table: 5.18: Year Wise Transport InvestmentSource: Annual Report of IBBL (2009-2013)

Figure-5.32: Amount of Investment of Transport

Figure-5.33: Percentage of Investment in Transport

SME Investment

2009 2010 2011 2012 20130.00%

10.00%

20.00%

30.00%

40.00%

50.00%

0.00%

22.99%27.99%

33.02%

46.39%

Percentage of Investment in SME

Trend of Percentage of Total In-vestment in SME

Year 2009 2010 2011 2012 2013

Investment in SME (Million tk.) - 49337 72933 100991 168393

Percentage of Total Investment - 22.99% 27.99% 33.02% 46.39%

Table: 5.19: Year Wise SME InvestmentSource: Annual Report of IBBL (2009-2013)

Figure-5.34: Amount of Investment of SME

Figure-5.35: Percentage of Investment in SME

Income from Investment

2009 2010 2011 2012 20130

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

19543.84 21370.5324766.26

32019.53

43672.23

Amount (Million tk.)

Amount (Million tk.)

Year 2009 2010 2011 2012 2013

Amount (Million tk.) 19543.84 21370.53 24766.26 32019.53 43672.23

Table: 5.20: Year Wise Income from InvestmentSource: Annual Report of IBBL (2009-2013)

Figure-5.36: Amount of Income from Investment

MODE WISE INCOME OF IBBL IN 2013

Income from Murabaha mode

2009 2010 2011 2012 201354.00%55.00%56.00%57.00%58.00%59.00%60.00%61.00%62.00%63.00%64.00%

62.33%

57.59% 57.10%

61.21%

63.03%Percentage of Investment Income

Income

Year

In P

erce

nta

ge

Year 2009 2010 2011 2012 2013

Investment Income (in Million Tk) 11,726 11,716 13,436 18,634 25,625

%of total Investment Income 62.33% 57.59% 57.10% 61.21% 63.03%

Source: Annual Report of IBBL Page-260, (2009-2013)Table -5.21: Murabaha Total Investment IncomeinMillion Tk and the percentage of Income

Figure-5.37 :Amount of Murabaha Total Investment Income in Million Tk

Figure 5.38 : Murabaha Total Investment Income in percentage

Investment Income from MusarakaYear 2009 2010 2011 2012 2013

Investment Income (in Million Tk) 322 551 891 1608 1650


Source: Annual Report of IBBL (2009-2013)Table 4.22: Musaraka Total Investment Income in Million Tk and the percentage of Income

Figure 5.39:Amount of Musaraka Total Investment IIncome in Million Taka

Figure 5.40 : percentage of Musaraka Total Investment Income

2009 2010 2011 2012 20130.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

1.71%

2.71%

3.79%

5.28%

4.06% Percentage of Investment Income

Investment Income

Year

In P

erce

nta

ge

Investment Income from Bai-Muajjal

2009 2010 2011 2012 20130.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

5.03% 4.66%4.97% 5.38% 5.86%

Percentage of Investment Income

Income

Year

In P

erce

nta

ge

Year 2009 2010 2011 2012 2013

Investment Income (in Million Tk) 947 947 1170 1638 2382


Source: Annual Report of IBBL (2009-2013)Table 5.23: Bai-Muajjal Total Investment Income in Million Tk and the percentage of Income

Figure 5.41: Bai-Muajjal Total Investment Income in Million Tk

Figure 5.42: Bai-Muajjal Total Investment Income in percentage

Investment Income from HPSM TotalYear 2009 2010 2011 2012 2013

Investment Income(in Million Tk) 5,817 7,129 8,032 8,562 11000


2009 2010 2011 2012 20130.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

30.92%

35.04% 34.14%

28.13%27.05%

Percentage of Investment Income

Income

Year

In P

erce

nta

geSource: Annual Report of IBBL (2009-2013)

Table 5.24: HPSM Total Investment Income in Million Tk and the percentage of Income

Figure 5.43: HPSM Total Investment Income in Million Tk

Figure 5.44: HPSM Total Investment Income in Percentage

Classified Investment as a Percentage of Total Investment

Years 2009 2010 2011 2012 2013

Classified Investment(in Million Tk) 4,311.13 5,063.40 4,655.63 8,292.32 14,212.8

0

Total Investment(in Million Tk) 1,80,054 2,14,616 2,63,225 3,05,841 3,72,921

Classified Investment as a % of Total

Investment

2.39% 2.36% 1.77% 2.71% 3.81%

2009 2010 2011 2012 20130.00%1.00%2.00%3.00%4.00%5.00%

2.39% 2.36%1.77%

2.71%3.81%

Percentage of Classified Investment

Classified Investment

Table: 5.25: Year Wise Classified Investment as a Percentage of Total InvestmentSource: Annual Report (2009-2013)

Figure-5.45: Amount of Classified Investment

Figure-5.46: Percentage of Classified Investment

Bad or Loss as a Percentage of Total Investment

Years 2009 2010 2011 2012 2013

Bad or Loss (in Million Tk) 2810 2735 3238 4337 10823

Total Investment(in Million Tk) 1,80,054 2,14,616 2,63,225 3,05,841 3,72,92

1

Bad or Loss as a % of Total Investment 1.56% 1.27% 1.23% 1.42% 2.90%

Table: 5.26: Bad or Loss as a Percentage of Total InvestmentSource: Annual Report (2009-2013)

Figure-5.47: Bad or Loss as a Percentage of Total Investment

Return on Investment (ROI) of IBBLYears Return on Investment

(in Percentage)

2009 10.67%

2010 10.40%

2011 10.08%

2012 10.87%

2013 12.21%

Table 5.27: Percentage of Return on Investment

Figure 5.48: Percentage of Return on Investment

COMPARATIVE ANALYSIS

Deposit of IBBL as % of total National Deposit

Year 2009 2010 2011 2012 2013

National deposit (Billion Taka) 2603.1 3037.8 3858.9 4484.4 5130.3

Deposit of IBBL (TK in Millions) 202115 244292 291,935 341853 417844

Deposit IBBL as % of total

National Deposit

7.76% 8.04% 7.57% 7.62% 8.14%

Table 6.1: Deposit IBBL as % of total National DepositSource: Annual report of IBBL & Bangladesh Bank (2009-2013)

Figure 6.1: Deposit IBBL as % of total National Deposit

Investment of IBBL as % of total Investment

Year 2009 2010 2011 2012 2013

National (Billion Taka) 1939.9 2439.8 3297.5 3642.6 4743.8

Amount(TK in Millions) 1,80,054 2,14,616 2,63,225 3,05,841 3,72,921

Investment of IBBL as % of total

Investment

9.28% 8.80% 7.98% 8.40% 7.86%

Table 6.2: Investment of IBBL as % of total InvestmentSource: Annual report of IBBL & Bangladesh Bank (2009-2013)

Figure 6.2: Investment of IBBL as % of total Investment

Comparison of Investment to Deposit Ratio of IBBL & National Investment to Deposit Ratio:

Year 2009 2010 2011 2012 2013

Industry Average (%) 75 80.3 85.5 79.7 86.7

IBBL (%) 89.08 87.85 90.17 87.29 85.18

Table 6.3: Comparison of Investment to Deposit Ratio of IBBL & National Investment to Deposit Ratio Source: Annual report of IBBL & Bangladesh Bank (2009-2013)

Figure 6.3: Comparison of Investment to Deposit Ratio of IBBL & National Investment to Deposit Ratio

Non- performing Investment of IBBL as % of total Investment

Year 2009 2010 2011 2012 2013

Industry Average 10.8 9.2 7.3 6.1 5.6

NPI OF IBBL 2.39 2.36 1.77 2.71 3.81

Table 6.4: Non- performing Investment of IBBL as % of total Investment Source: Annual report of IBBL & Bangladesh Bank (2009-2013)

Figure 6.4: Non- performing Investment of IBBL as % of total Investment

FINDINGS• The total deposit of IBBL has increased over the years and the deposit

of IBBL as percentage of total national deposit has increased over the years from 7.57% in 2011 to 8.14% in 2013. This indicates that comparative deposit performance of IBBL has increased over the years.

• Investment during the year 2009 to 2013 has increased over the years. The investment has increased from taka in Millions 1,80,054 to 3,72,921.

In the year 2013, IBBL invested their maximum portion in Bai – Murabaha mode (59%) which is amount of TK 2, 21,632 million that means sale for which payment is made at a future fixed date or within a fixed period in short, it is a sale on credit. The second maximum portion of investment is in HPSM mode which amount in TK 96,056 million & in percentage is 26%. The bank invests in other modes at lower percentage. The lowest portion was invested in Bai- Salam at 1%.

FINDINGS• The deposit as percentage of total national investment has decreased in the

years from 9.28% in 2009 to 7.86% in 2013. This indicates that comparative investment performance of IBBL has decreased over the years. It is not satisfactory position of IBBL so it should try to increase its investment.

• The total investment of IBBL has increased over the years but the investment as percentage of total national investment has decreased over the years from 9.28% in 2009 to 7.86% in 2013.This downward trend of invest is negative sign for the bank.

• There is a fluctuating trend in investment to deposit ratio of IBBL. However, the investment to deposit ratio of IBBL is higher than industry average over each year of analysis except in 2013.

• This Bank revalues its investment operations within limited number of investment modes and does not initiate investment modes according to changing diverse needs of people.

FINDINGS

• Annual income of IBBL is massive comparing to other commercial banks.

• ATM service is very poor.• Server is very slow.• This Bank can’t invest in all economic sectors which are prohibited

by the law of Islam.

• IBBL should increase investment in agricultural sector because Bangladesh is an agricultural country.

• IBBL should initiate different investment modes according to changing / diverse needs of clients by conducting huge research and study.

• Investment power should be decentralized.• Bangladesh is rural base country. So IBBL should increase their

investment in rural area.• IBBL should increase its investment in public sector, i. e. the bank

should involve profitably in this sector for the development of the bank as well as the economy.

• Bank should take corrective actions to reduce its upward trend of outstanding amount of investment and careful to take investment decision.

RECOMMENDATION

• Attempt should be made for an improved information system within the bank and within the investment clients unit.

• Consider offering growth pre-investment and post investment counseling to both potential and existing investors according to their needs.

• Repayment behavior of different types of clients play a important role not only in the successful implementation of investment plan but also in the cost-benefit analysis for the banks, there is need to analysis in detail the repayment behavior at micro level. Such a study provides proper guidance for the banks to be associated with the clients at various stages of utilization of investment and its repayment.

• Investment plan commitment should be included in the budget of each branch of the bank and progress should be regularly monitored.

RECOMMENDATION

• The productivity of the bank may be raised by better funds management and portfolio management improving recycling of funds and developing other income from the business activities of the bank

• It could increase its advertising as well as awareness regarding Islamic investment modes.

• The authority of IBBL should introduce more innovative and modern customer service.

• Investment should be provided in the SMEs sector for developing entrepreneur investment.

• IBBL should try to improve the deposit investment ratio for higher productivity.

• IBBL should encourage the people for Mudaraba & Musharaka Investment.

RECOMMENDATION

THANK YOU ALL

F O R B E I N G W I T H M E

Diffrerent Modes Of Investment of IBBL-BUBT

Economy & Finance

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