Historical Background of IBBL:

In August 1974, Bangladesh signed the Charter of Islamic Development Bank and committed

itself to reorganize its economic and financial system as per Islamic Shariah. Earlier in

November 1982, 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. They found a lot of work had already been done and Islamic banking was in

a ready form for immediate introduction. Two professional bodies- Islamic Economics Research

Bureau (IERB) and Bangladesh Islamic Banker's Association (BIBA) mode significant

contributions towards introduction of Islamic Bank in the country.

Islami bank Bangladesh limited (IBBL) was incorporated as the first Shariah based-interest free

Bank in south-east Asia on 13th March 1983 as a Public Company with limited liability under

the company act, 1913 with 58.03% foreign shareholding having largest branch network (236

Branches & 30 SME/Krishi Branches i.e. total 266 Branches) among the private sector Banks in

Bangladesh. The Bank started functioning with effect from 13 th March 1983. The establishment

of this bank ushered a new area in Bangladesh, The first branch of the bank i.e. local office,

Motijheel, Dhaka. The bank was formally inaugurated on 12th August 1983.

Islami Bank Bangladesh Limited is a Joint Venture Public Limited Company engaged in

commercial banking business based on Islamic Shari'ah with) among the private sector Banks in

Bangladesh. It was established on the 13th March 1983 as the first Islamic Bank in the South

East Asia.

It is listed with Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. Authorized

Capital of the Bank is Tk. 20,000.00 Million ($244.87 Million) and Paid-up Capital is Tk.

10,007.71 Million ($122.53 Million) having 63,001 (30.06.2011) shareholders as on 31st

December 2011.

MISSION OF IBBL

To establish Islamic banking through the introduction of a 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 developed areas of the country, to encourage socio-economic uplift and financial

services to the low income community particularly in the rural areas.

VISION OF IBBL

The vision of Islami Bank Bangladesh limited is to 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

systems.

Encourage savings in the form of direct investment.

To encourage investment particularly in projects which are more likely to lead higher

employment

Objectives of Islami Bank Bangladesh Limited:

Al-Ghazali says, "The very objective of the Shariah is to promote the welfare of the people

which lies in safeguarding their faith, their life, their intellect, their posterity and their property.

Whatever ensures the safeguard of these five serves public interest and is desirable."

The primary objective of establishing Islamic banks all over the world is to promote, foster and

develop the application of Islamic principles in the business sector. More specifically, the

objectives of Islamic banking when viewed in the context of its role in the economy are listed as

following:

To conduct interest free banking.

To offer contemporary financial services in conformity with Islamic Shariah:

To contribute towards economic development and prosperity within the Principles

of Islamic justice;

Optimum allocation of scarce financial resources

To establishing participatory banking instead of banking on debtor creditor

relationship.

To establish welfare oriented banking system

To pay a vital role in human development and employment generations.

Help to ensure equitable distribution of income.

To established modern banking system.

Special features of IBBL

The bank is committed to run all its activities as per Islamic Shariah. IBBL through its steady

progress and continuous success has earned the reputation of being one of the leading Private

Sector Banks’ of the country. The distinguishing features of IBBL are as follows:

All activities are conducted on interest-free banking system in accordance with Islamic

Shari’ah.

Investment is made through different modes permitted under IslamiShari’ah.

Establishment of participatory banking instead of banking on debtor-creditor relationship.

Investment income of the Bank is shared with the Mudaraba depositors according to a

ratio to ensure a reasonable fair rate of return on their depositors.

Its aims are to introduce a welfare-oriented banking system and also to establish equity

and justice in the field of all economic activities.

It extends Socio-economic and financial services to the poor, helpless and low-income

group of the people for their economic enlistment particularly in the rural areas.

It plays a vital role in human resource development and employment generation

particularly for the unemployment youths.

Its aim is to achieve balanced growth and equitable development of the county through

diversified investment operations particularly in the priority sectors and in the less

developed areas.

It extends co-operation to the poor, the helpless

CREDIT RATING REPORT

CREDIT RATING REPORTON

ISLAMI BANK BANGLADESH LIMITED

This is a credit rating report as per the provisions of the Credit Rating Companies Rules 1996 and as per BRPD Circular No. 5of Bangladesh Bank dated on April 29, 2009. CRISL’s entity rating is valid one year for long-term rating and 6 months forshort term rating.

Long Term Short Term

Surveillance Rating, 2010 AA+ ST-1

Surveillance Rating, 2009 AA+ ST-1

Outlook Stable

Date of Rating June 22, 2011

Credit Rating Information and Services Limited (CRISL) has upgraded the long term rating of Islami Bank Bangladesh Limited (IBBL) to "AA+" (Pronounced as Double A plus) and reaffirmed Short Term Rating to "ST I"

The bank rated "AA+" (High Safety) in the long term is adjudged to be of high quality, offer higher safety and have high credit quality. This level of rating indicates a corporate entity with a sound credit profile and without significant problems. Risks are modest and may vary slightly from time to time because of economic conditions.

The bank rated "ST I" (Highest Grade) in the short term is considered to have highest certainty of timely payment. Short term liquidity including internal fund generation is very strong and access to alternative sources of funds is outstanding, safety is almost risk free like Government short term obligations, the release added.

Corporate information: (2012 of IBBL)

Date of Incorporation       13th March 1983

Inauguration of 1st Branch

(Local office, Dhaka)            

30th March 1983

Name of Chairman Prof. Abu Nasser Muhammad Abduz Zaher

Total Equity : USD 429 Million

Total Asset : USD 4,939 Million

Local Shareholders          42.15%

Foreign Shareholders          57.85%

Authorized Capital                            Tk. 20, 000 million

Paid-up Capital                                   Tk. 10,007.71 million

Number of Branches                           251 (including 43 AD Branches

Zone 12

Number of Shareholders                     63,001

Manpower                                           11,033