Shahjalal Islami Bank Ltd.

(Draft prospectus of the company not yet approved by Regulatory body.) (If there is any contrary information please communicate with DSE through e-mail: listing@dsebd.org) Disclaimer The contents of this presentation are entirely based on disclosures made by the company. Therefore, DSE does not assume any responsibility on the authenticity of the facts and figures presented thereof. Brief Overview of the Company 1. Date of Incorporation: April 1, 2001

2. Date of Inauguration: May 10, 2001

3. Authorized Capital: Tk. 2,000 million

4. Paid up Capital: Tk. 935.83 million (as on June 30, 2006)

5. Number of Branches: 16

Details of IPO Description No. of Ordinary

Shares Face Value Amount

Pre-IPO Placement

-

Initial Public Offering (IPO):

- - -

1) IPO to Non Resident Bangladeshi

935825 Tk. 100 93582500

2) IPO for Mutual Fund

935825 Tk. 100 93582500

3) IPO to General Public

7486600 Tk. 100 748660000

Total IPO Issue 9,358,250 Tk. 100 935,825,000 Capital Structure after IPO

Particulars Amount in Taka Paid up capital before IPO 935,825,000 Paid up Capital after IPO 935,825,000 Total Paid up Capital after IPO 1,871,650,000

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Board of Directors Sl Name of Director Designation Shares

Held as on 30.06.200

6(%)

Other Associations

1 Alhaj Sajjatuz Jumma

Chairman 4.94 Managing Director, Fresco Flour Industries Ltd. Managing Director, Farina Industries Ltd. Managing Director, Desh Electronics Ltd. Chairman, Mercantile Securities Ltd.

2 Alhaj Tofazzal Hossain

Vice Chairman

4.94 Director, Fareast Finance & Investment Ltd. Director, Takaful Islamic Insurance Ltd.

3 Alhaj Md. Sanaullah Shahid

Vice Chairman

5.11 Chairman, Electra International Ltd.

4 Alhaj Anwer Hossain Khan

Director 5.08 Director, Fareast Finance & Investment Ltd. Director, Takaful Islamic Insurance Ltd. Chairman & Managing Director, Modern Diagnostic Center Ltd.

5 Alhaj Md. Faruque Represented by Mr. Md. Masud

Do 8.52 Managing Director, Tanduri Restaurant Ltd. Director, East Bengal Tanduti Restaurant Ltd.

6 Alhaj Harun Miah Represented by Alhaj Rukun Uddin Khan

Do 5.11 Managing director, Kushiara Financial Services Ltd., Kushiara Cash & Carry Ltd. Vice Chairman, Holiday Planet.

7 Alhaj Md. Farooq Do 5.00 Proprietor, Famous Perfumery Suppliers Chairman, FS Printing & Packaging Ltd.

8 Alhaj Abdul Barek Do 5.09 Proprietor, Arju Electronics, Jony Electronincs, Rony Electronics

9 Alhaj Md. Solaiman Do 5.11 Director, Mercantile Insurance Co. Ltd., Central Hospital Ltd., Managing Director, Paradise Electronics.

10 Alhaj Abdul Halim Do 5.00 Chairman, Halim Group, Director, Islami Insurance of Bangladesh

11 Alhaj A.K. Azad Do 7.62 President, Bangladesh Chamber of Industries Director, Sonarbangla

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Insurance Ltd. Managing Director, Ha-Meem Group

12 Alhaj Mohammad Younus

Do 4.94 Managing Director, Younus Plastic Industries Ltd., Universal paper & Board Mills Ltd. Chairman, Express Insurance Ltd.

Performance at a Glance

(Tk. in Million) Particulars 2001 2002 2003 2004 2005 30.06.06Deposits 1398.3 3302.15 5978.95 9019.9312023.2314887.74Growth 136.15% 81.06% 50.86% 33.30% Investments 216.56 1999.97 4269.32 7148.6810590.2712800.53Growth 823.52% 113.47% 67.44% 48.14% Total Assets 1624.9 3669.4 6423.39 9742.3114447.7217387.78Growth 125.82% 75.05% 51.67% 48.30% Total Operating Income 37.04 175.22 182.54 215.74 677.12 528.26Growth 373.06% 4.18% 18.19% 213.86% Total Operating Expenditure 29.66 80.35 158.33 140.89 175.28 106.3Growth 170.90% 97.05% (11.01)% 24.41% Operating Profit 7.38 94.87 24.2 74.85 501.83 421.96Growth 1185.50% (74.49)% 209.30% 570.45% PBPT 7.38 94.87 24.2 (809.37) 501.83 421.96Growth Net Profit after Tax 2.26 46.22 (472.57) 255.58 218.94Growth EPS 1.1 22.55 (204.91) 33.63 23.39Growth NAV per share 101.1 123.65 109.91 57.5 79.25 102.65Growth 22.30% (11.11)% (47.68)% 37.83% 29.53%Investments/Deposits 15.49% 60.57% 71.41% 79.25% 88.08% 85.98%NPI/Total Investments 0.15% 0.23% 0.50% 0.13%

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Risk factors and management perceptions about the risks

Interest rate risks Volatility in money market imposes upward pressure on interest rate structure. Rise in interest rate erodes financial institutions like banks profits by increasing cost of fund.

Management perception

Shahjalal Islami Bank Limited (SJIBL) operates its business based on Islamic Shariah. Volatility in short-term money market does not affect SJIBL directly since it does not participate in call money market. However, to be competitive with conventional banks the bank has been collecting deposits under mudaraba principle at the bargaining rates.

Exchange rate risks Devaluation of local currency against major international currencies affects adversely business performance of import based companies or companies borrowing in foreign currency.

Management perception

SJIBL does not have any foreign currency loan. Presently it does not do cross currency swaps/forward in foreign currency. The risk of exchange rate fluctuation is borne by the banks clients since the treasury dealing room buy and sale foreign currency against import and export for its clients only.

Industry risks Entrants of new banks and financial Institution Entrants of new banks or financial institutions can be a threat for banking sector as well as for the bank itself. It may decrease the growth rate of the bank.

Management perception

SJIBL is the one of the leading third-generation Islamic banks in Bangladesh. The bank has achieved significant growth since its inception and has been successfully maintaining the growth. SJIBL plans to remain innovative in future by way of creating required business infrastructure and market segment for its products. To maintain present growth rate SJIBL continuously trying to develop its services, which will eventually provide competitive edge over other new competitors and market entrants.

Potentials for Islami Banking

There are other Islami banks operating in the country. Moreover, most of the conventional banks are now opening Islami banking branches. SJIBL may face competition both from Islami banks and conventional banks.

Management perception

The performance of SJIBL is satisfactory since inception and there is a good demand for Islami banking in Bangladesh. Islami banking in Bangladesh has extraordinary growth record and it is hoped that the management of the bank will be able to catch up with the sentiments and expectations of the depositors in maintain such growth.

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Technology related risks No bank can develop and maintain its growth unless it embraces adequately with fast changing technology.

Management perception

SJIBL is well equipped with modern technology with online banking, SWIFT, RAUTER 3000, XTRA services and shall continue with the technical enhancement.

Potential or existing government regulations Some time government takes some important decision for political or national reason like narrowing down spread in order to reduce the offered rates to its clients. If the government at any given point of time takes such measures in terms of both monetary and fiscal policy, this may affect profitability of the bank.

Management perception

The banks ability to operate profitably is directly related to the management of performing assets and at the same time keeping the administrative cost within the stipulated range. Fortunately the bank has been successful in both the areas.

Potential changes in global or national policies Unfavorable changes in global and national policies will affect companys business operation adversely.

Management perception

In this case, risk will be same for all banks as no bank can overcome and avoid this problem.

Operational risks Classified portfolio

Though the banks main business is to provide investment to its client, classified portfolio is also created in the process. Increase of classified investment creates significant risk to its Investors.

Management perception

From the very beginning SJIBL maintained a very low classified portfolio. Full provision is made against this classified Investment as per requirement of Bangladesh Bank. As on 30 June 2006, its classified portfolio stands at 0.13% of the total Investment portfolio. Bank persists its policy in maintaining the low classified Investment in future years.

Loss on foreign dealings

The Bank incurred loss of Tk.88.42 crore in foreign exchange dealing business accounted for in the year 2004, which has since been recovered out of profit earned by the Bank thereafter.

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Management perception

The issue of loss was detected by the Board Audit Team and Bangladesh Bank Inspection Team in early 2004 and thereafter the total loss was ascertained and determined by the Bank and conveyed to Bangladesh Bank seeking their guidance. Pursuant to the direction of Bangladesh Bank in this regard vide their letter dated 19th August 2004, the aforesaid loss was accounted for and the sponsor shareholders of the bank has infused additional capital of Tk. 705.20 million which increased the paid up capital to Tk. 935.83 million. The management has already decided to stop all kind of speculative deals and cross currency swaps/forward in foreign currency. Treasury dealing room only buy and sale foreign c