FOREIGN EXCHANGE BUSINESS

The Foreign Exchange business is handled by the Bank in 4 major areas:

1)
2)
3)
4)

Import Business
Export Business
Foreign Remittance
Foreign Exchange Treasury activities

The achievement of Islami Bank Bangladesh Limited in the area of foreign exchange
business has been quite phenomenal. The Bank has been providing services to import and
export trade and for repatriation of hard earned foreign exchange of the countrymen
working abroad and has by-now, consolidated its position in these areas.
Growth
The Foreign Exchange business of the Bank has been a success story. By-now, IBBL has
established itself as one of the leading bank of the country in foreign exchange business.
Total foreign exchange business of the Bank stood at Taka 402695.00 million at the end
of 2008. The Bank made the highest contribution in the countries import, export and
remittance. The bank has been playing a vital role in earning valuable foreign exchange
for the country from export and remittance services. Foreign Exchange business in 2008
registered a growth of 37% on the preceding year. The table below shows the picture of
foreign exchange business of the bank in the last 26 years growth trend.
Apart from a few exceptions, the bank always maintained a healthy growth in foreign
exchange. In the last 5 years the Bank maintained over 30% growth

Table: Foreign Exchange Business of IBBL

Year

Import

Export

Remittance

Total F. Ex Growth
Business
Rate

1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008

10.80
861.60
978.42
1800.61
1578.45
2015.30
3394.90
3917.70
6204.27
8778.51
8612.70
14623.43
21218.38
17874.80
17370.00
20238.30
20396.00
25327.00
25907.00
33788.00
46237.00
59804.00
74525.00
96870.00
137086.00
168329.00

63.70
265.00
622.42
971.15
1349.70
1543.80
2588.30
3966.58
4948.81
5841.64
7790.42
11015.75
11766.40
14469.40
14894.30
14798.00
16889.00
16082.00
16673.00
21738.00
29151.00
36169.00
51133.00
66690.00
93962.00

443.80
492.38
1172.71
1424.64
1125.40
901.60
1339.90
1814.13
2028.59
2402.51
2943.00
2447.21
3328.30
4806.00
6360.60
8415.00
7644.00
9879.00
14670.00
16668.00
23669.00
36948.00
53189.00
84143.00
140404.00

10.80
1369.10
1736.80
3595.74
3974.24
4490.40
5840.30
7845.90
11984.98
15755.91
16856.85
25356.85
34681.34
32969.50
36645.40
41493.20
43609.00
49860.00
51868.00
65131.00
84643.00
112624.00
147642.00
201822.00
287919.00
402695.00

Tk.1= US$ 0.0146

27%
107%
11%
13%
30%
34%
53%
31%
7%
50%
37%
-5%
11%
13%
5%
14%
4%
26%
30%
33%
31%
37%
43%
40%

Remittance and Customer Services

Since inception in 1983, with emphasis on quality customer service and giving good
value to the customers, the bank has achieved tremendous success in facilitating
remittance of Expatriate Bangladesh through establishment of drawing agreement and
special remittance arrangement with many renowned Banks and exchange houses in
major remittance source countries like KSA, UAE Kuwait, Oman, Qatar, Bahrain, UK,
USA, Korea, Italy, Canada, Greece, Malaysia, Singapore etc. IBBL is using state of the
art technology, viz., SWIFT, online Banking for expeditious delivery of the remittances
to the beneficiaries. All the Branches of the bank have been equipped with separate
expatriate services cell. The instant money transfer system and instant cash payment have
also been introduced to expedite payment to the beneficiaries. To serve expatriate
customers & their beneficiaries, Foreign remittance Services Division has been
established at International Banking Wing to ensure better customer service at all levels.

Treasury Activities
IBBL is now actively participating in the Inter Bank Foreign Exchange market through its
Dealing Room in order to meet internal requirements as well as to contribute in the InterBank has now reached to 14% at the end of 2008. The Forex Treasury of the Bank is
housed at the Head office and managed by International Banking Wing.

Foreign Correspondence
In order to meet the customer needs all over the world, the bank has developed a wide
network with more than 919 Foreign Correspondent Banks.

OPERATING RESULTS
The Bank earned handsome amount of profit every year since its inception. Gross Income
of the Bank as on 31st December 2007 was Taka 17,699.52 million as against Taka
14,038.30 million during the preceding year.

Table: Pre-Tax Profit, dividend

Year
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007

Pre- tax Profit

(In Million Taka)
(2.55)
7.83
8.87
0.13
7.22
30.66
22.59
140.56
105.76
80.00
222.58
311.36
283.52
170.75
148.39
178.31
330.24
576.12
994.05
802.02
1842.99
2162.42
3315.30
5162.35

Dividend
4.41%
5.00%
15.00%
13.00%
15.00%
15.00%
15.00%
15.00%
18.00%
20.00%
21.00%
21.00%
21.00%
25.00%
25.00%
25.00%
20.00%
20.00%
25.00%
15% cash+ 10% bonus
25% stock

TK. 1=USS 0.0146

The Bank declared 25% Stock Dividend / Bonus share for the shareholders for the year
2005.25% Stock Dividend for the year 2007, 25% (15% cash and 10% bonus) Dividend
for the year 2006. The Bank declared 20% Stock Dividend/ Bonus Share for the year
2004, 2003, 25% Dividend during the year 2002, 2001 & 2000, 21% during the year
1997, 1998 & 1999 and 20% during the year1996, which were the highest, compared to
the Dividend paid by other banks in the country. Dividends provided during the earlier
years were also attractive. Rate of return on Equity of the Bank had always been
satisfactory.

Islami Bank could also maintain the Capital Adequacy ratio and provide for loans and
advanced considered bad and doubtful of recovery up-to the level as stipulated by the
monetary Authority of the country.

RATING REPORT
Credit Rating Information and Services Ltd- CRISL [a joint venture rating agency of
Rating Agency Malaysia Berhad (RAM), JCR- VIS Credit Rating Company Ltd.,
Pakistan, Prime Commercial Bank Ltd., Pakistan and Local Corporate/ Sponsors,
Bangladesh] was engaged by the bank.
The CRISL submitted its report on financial year 2007 and assigned AA for long term
rating scale.
Financial Institutions rated in this category are 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
very slightly from time to time because of economic conditions.
CRISL assigned ST-1 (High Grade) for short term rating scale for 2007.
Financial Institutions rated in this category means having 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 like risk free
Government short-term obligations.

EXPANSION OF BRANCHES
The Bank started its journey in 1983 with only 3 branches, one each in Dhaka
Metropolis, Chittagong and Sylhet. As on 31-12-2008 the total number of branches stood
at 196. The Bank has also opened 10 new SME service centers in 2008. 15 more new
branches will be opened within the year of 2009. The Bank intends to deliver its services
to entire of Bangladesh during the next few years by opening branches to each and every
Upazilla Headquarters and growth centers of the country.
11 (eleven) Administrative Offices/ Zones are functioning all over the country for
effective control, close supervision and proper monitoring of the total operations of the
branches as well as assisting in the development of business.

MANPOWER
The manpower of the Bank is increasing steadily and proportionately with the expansion
of branches and activities of the Bank. At the end of 2008, the total manpower of the
Bank stood at 9399 which was 8426 in 2007. The Bank is trying to ensure optimum
utilization of its manpower by improving the standard of their efficiency and quality of
their service.

DEVELOPMENT
OF
MANPOWER,
TRAYNING AND MOTIVATION

RESEARCH,

The principles and working procedures of Islamic Banks are completely new and
different from the conventional banks. There is an inevitable need for training of the
employees of the banks to orient and attune them, to the new system of the Islami
banking. To cater to this need, Islami Bank Training and Research Academy (IBTRA)
was established in 1984, soon after the inception of the bank.
The activities of IBTRA cover both training and research on various aspects of Islamic
Banking. The Academy developed a rich library of its own with a treasure of valuable
books on different subjects including Islamic economics, banking, comparative
philosophies and journals of home and abroad and research articles and documents.
Employees of the Bank, learners and researches have been taking full advantage of the
library.

PUBLICATION
The Academy edited books on Readings in Islamic Banking and Investment
Operations. It also edited and published a brochure on Investment and Trade
opportunities in Bangladesh. The Academy publishes a research journal titled Journal
of Islamic economics and Finance.
Banks quarterly research journal Islami banking highlighting the concept of Islamic
economy, banking, insurance, prospect of economic collaboration among the Muslim
countries etc. started its Publication by Public Relation Department of the bank in 1992
which has been widely acclaimed by all sections of people including academicians,
economists, bankers, journalists, judges, intellectuals etc. Periodical house magazines
named Islami Bank Parikrama and Islami Bank Palli Unnyan Barta and half yearly
English news bulletin Islami Bank Newsletter are being published regularly as the
mouthpiece of the Bank. The bank is also providing financial assistant for publication of
a textbook on Islamic Economics and Banking for the university students.
Discussion meetings, seminars symposia, workshop are also being arranged to appraise
the people of the Islamic banking system. Stalls and booths were opened in different
national and international fairs for projecting the activities of the bank.

Academic Council
Keeping in view the existing and future training requirement of the Bank and also to
generally cater such needs of different Islamic banking & financial institutions of this
region, the management of Islami Bank Training and Research Academy has been placed
at the disposal of an Academic Council consisting of 3 Directors of the Board,
management executives of the Bank, Shariah scholars, renowned academicians and
representatives of the reputed institutions engaged in the training of bank officials of the
country.

Training Courses
The Academy conducts training courses, and workshops. The courses include Islamic
Banking, Banking Law and Practice, Investment Operations and Management, Foreign
Trade and Foreign Exchange, Shariah Based Audit and Inspection.
Besides, orientations, induction, foundation and motivation courses on different subjects
are also round the year. In addition to conducting regular training courses, it arranges
seminar on Islamic economics and banking and such other related topics of current
interest.

Executive Development Programme

Apart from this, an Executive Development Programme has been introduced at the
head office of the Bank in Dhaka since 1988 for enriching knowledge and thought
process and developing professional skill of the Executives. This programme has proved
to be effective and now being extended outside Dhaka.

Internship Programme
The Academy conducts internship courses for the students of different departments of
various universities of the country.

Awards on Islamic banking

The Bank introduced annual award for the best three students of the Department of
Banking and Finance of Dhaka University who secure highest scores obtaining the
position 1st, 2nd and 3rd with Islamic Banking as special subject from the year 1994.

Client Orientation Programme

Besides, a motivation programme has been introduced since 1987 for the clients of the
Bank. Client orientation programme are arranged at different branches for disseminating
the concept of Islamic economics and banking and to acquaint the clients with the
operations of Islamic banking system.

International Seminar
The Bank, in 1993, co sponsored a three day international seminar on Islamic Common
Market in which scholars, economists, bankers, industrials and representatives of trade
bodies of 15 countries participated. The Bank, with the collaboration of International
Association of Islamic Banks ( IAIB), organized an International Seminar on Islamic
Banking in 1985 and another International Seminar on Islamic banking and Insurance in
1989.

Diploma in Islamic Banking

Islami Bank Training and Research Academy has introduced diploma in Islamic Banking
since 1998.

AUTOMATION & INFORMATION TECHNOLOGY

All branches of IBBL are computerized. But the existing software is not WAN enabled.
Hence, with a view to developing a WAN enabled banking system, a separate team of OT
professionals has been engaged who are working under the guidance of Information and
Communication Technology Implementation Committee (ICTIC) comprised of renowned
IT experts of the country. Upon its completion and successful implementation it will help
operate online banking, thus help the customers to have modern banking services.

a.IBBL E- cash ATM Network

IBBL provided necessary support to continue ATM network E- cash successfully. The
network is running smoothly and customers are able to avail non-stop online teller
services without going to the specific branch pf the Bank. They can withdraw cash,
check balance, pay BTTB, Grameen Phone, City cell and Aktel bills and deposit monthly
installments of Hajj, Pension, Muhor and HDS schemes of IBBL through ATM at 27
locations at Dhaka, Chittagong and Sylhet city. This number will be increased to 200
soon.

b. Website
The Website of IBBL (www. Islamibankbd.com) is being maintained regularly where all
necessary and up-to date information, news and events of IBBL are provided including
financial position, branch information and foreign correspondence, Annual Report,
Account opening forms etc. Visitors, Economists, Ph.d students, researchers around the
world are using the site conveniently for different purposes.

c. SWIFT
IBBL has become a member of SWIFT (Society for Worldwide inter-Bank Financial
Tele- communication) in 1999 and thus providing a secured and accurate communication
network for financial transactions including L/C, Remittance etc. SWIFT has been
installed at all 35 AD (Authorized dealer in Foreign Exchange Business) Branches up-to
31.12.2005 for rendering better services to the Importers, Exporters and Remittance
business.

d. REATERS
In todays globally connected world, information faster than the speed of light brings
organizational success. For ensuring maximum strategic advantages through access to
global information, the Bank has also become a member of REATERS. This membership
allows the Bank to receive regular up dated information regarding exchange rates, metal
markets and other commodity prices, which help IBBL in making correct and prompt
business decisions.

e. EIBS (Electronic Integrated Banking System)

During the year 2005 much progress has been made in the development of the Banks
own software by a team of young engineers and technician. On line banking software was
develop and tested during the year under report (112 Branches have brought under on line
operations up to December 2008). It is expected that most of branches of the Bank will be
on online operations very soon.

SOCIAL-WELFARE ACTIVITICS OF ISLAMI BBANK

FOUNDATION
One of the distinguishing features of Islami Bank is that its overall activities are directed
towards the welfare pf the society. The Bank, since its inception, has dedicated itself for
the uplift and emancipation of the helpless and downtrodden people of the society. With
this end in view, the Bank has created separate fund soon after the establishment of the
Bank, which was earlier known as Sadaqua Tahbil. In 1991, it was recognized and
enlarged under the new name of Islami Bank Foundation with a fund of Taka 38 million

in order to conduct social-welfare activities on a wider scale. As one of the leading

organizations of the country, the foundation has been working with unique and special
programmes for the welfare of distressed humanity and to make poor, downtrodden,
landless and asset less people self- reliant

Income Generating Programmes

Access to required finance and other related inputs might help many to become selfemployed. In absence of such opportunities the unemployed youths entangle themselves
in various anti- social activities. Islami Bank Foundation has, therefore, taken up the
following self-employment projects:
1.
2.
3.
4.
5.
6.

Rickshaw
Sewing
Poultry keeping
Rural Health Work
Milching cow/ goat rearing
Small trade/ shop keeping

Educational Programmes
Education is the backbone of a nation. Awareness building, skill training, access to
information- all depends on education. But it is regrettable that the rate of literacy is still
very low in Bangladesh. The foundation has, therefore, taken up the following
programmes to improve the countrys educational scenario:
a) Support to Model Forqania Maktab
b) Scholarship/ Lump- sump grant for poor and meritorious students
c) Financial support to Educational Institutions.

Health and Medicare Programmes

Health and Medicare facilities are the basic and fundamental rights of each individual but
most of the people of our country are still deprived of it. The Foundation has, therefore,
taken up the following programmes to extent health, medicare and sanitation facilities to
the urban and rural areas:
a)
b)
c)
d)
e)

Establishment of Medical Centers/ Clinics

Supporting charitable dispensaries
Lump-sum help for medical treatment
Tube well Installation
Sanitary latrine construction etc.

Humanitarian Help Programmes

These programmes aim at providing help to distressed people who are unable to meet
their basic needs like food, clothing, shelter and medicine. The old widow and children
without guardians get preference. Besides, the programme extends assistance to
orphanages, provide fund for the marriage of poor girls, assist indebted people, help
distressed wayfarers etc.

Relief and Rehabilitation Programmes

During calamities like flood, tornado, tidal surge etc., the Foundation mobilizes its own
people as well as donates to the relief fund opened at the govt. level. The Foundation
also tries its best to extend hands of assistance and co operation to the brethren elsewhere
in the world.

Dawah Programmes
One important objective of Islami Bank Foundation is to disseminate the true message
and teachings of Islam. The Foundation has taken up various schemes to enlighten the
common people as well as the elite and make them familiar with the concept of Islam.
Islamic research magazines and other Islamic Literatures are being distributed among the
Academicians, Journalists, Justices, Lawyers, High official, Bankers, Laureates and
important Libraries and institutions of the country. The Foundation is also working
among the prisoners for their moral reforms.

SPECIAL SCHEMES
A. Islami Bank Hospital
With the objective of providing low- cost curative services to the less affluent segment of
the society, the Foundation has so far set up Hospitals at 4 divisional headquarters in
Dhaka, Rajshahi, Khulna and Barisal.

B. Community Hospital
Besides establishing Hospitals at the divisional headquarters, IBF has a plan to assist
local initiatives in setting up Hospitals at District level.

C. Monorom: Islami Bank Crafts & Fashion

The project has been taken up as a sales outlet of homemade garments, handicrafts and
other items produced by the distressed woman.

D. Service Center
To save the people learning in the coastal and river belt from natural disaster, erosion etc.
a special project has been taken in the name and style of Service Center. Under this
programme, pucca structure constructed in coastal areas, river belts and offshore islands
would be used for integrated social development of the people as well as provide safe
shelters during natural calamities.

E. Islami Bank Institute of Technology

Islami Bank Foundation has, established 5 technical institutes, two in Dhaka, others in
Chittagong, Sylhet, Bogra, which are rendering training facilities in Computers,
Secretarial science, Driving, electrical, Refrigeration and Air conditioning, Textile,
telecommunication etc.

F. Islami bank International School and Collage

As an attempt to combine modern education with moral values for a total development of
a child, IBF has established an English Medium Model School and Collage in Dhaka.

G. Islami Bank Medical Collage, Rajshahi

Keeping in view the objective to enable the students of poor and middle class families to
be a doctor, IBF has established a medical collage in Rajshahi, a metropolitan city of
northern part of the country.

H. Distressed Women Rehabilitation Center

Women of poor families in our country are very much neglected. The condition of
widows and divorced women are worst. A large number of women in our society have no
shelter and for this reason they have to stay at footpath, railway station, or such other
places which are very risky for them. IBF has therefore, established a center for shelter,
training and rehabilitation of those unfortunate women in the name and style of
Distressed Women Rehabilitation Center.

I. Bangladesh Sangskritic Kendra (Cultural Center)

IBF has established this organization in Dhaka for upholding and promoting national
cultural and heritage of the country.
IBF has also started the following special schemes:

1.
2.
3.
4.

Islamic bank Nursing Training Institute

Islami Bank Institute of Health and Technology
Islami Bank Homeopathic Clinic
Islami Bank Mohila Madrasa