Evaluation of Investment Management- An Analysis

on Islami Banking Branch of Prime Bank Ltd., Sylhet

Rationale of the Study

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Objectives:

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The primary objective of the report is –

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•Analyzing the investment portfolio of Prime Bank Ltd.

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The secondary objectives of the report are –

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•To evaluate the Investment Modes of Prime Bank Ltd. and its

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effectiveness.
•To evaluate Different investment Schemes of Prime Bank Ltd.
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•Contribution of investment to Prime Bank Ltd.
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•To identify problems and prospects of Islami banking and provide

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some suggestions that would help Prime Bank Limited for more
progress on Islamic Investment.

Methodology:
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Sources of Data:
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Primary Sources
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Secondary Sources
» According to OIC, “A financial institution whose
statutes, rules and procedures expressly state its

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commitment to the principles of Islamic Shariah and to

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the banning of the receipt and payment of interest on

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any of its operation.”

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» Islami Banking Vs Conventional Banking
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» “Riba” & Profit
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» Types of Investment:
˃ Bai-Murabaha.
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˃ Bai-Muajjal.
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˃ Ijara.
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Total Investment 175524201

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Total
Investment

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91%

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Total Overdue
5%

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Total Depostis 1142112659

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Total Default
4%
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100000000
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90000000
Profit From
80000000 89000000
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Amount (Tk.)

investment
73% Bai-Muajjal
60000000
Investment
Income 50000000
18% 40000000
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47000000 33000000
30000000 32000000
38000000
20000000
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Bai-
Murabaha 10000000
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Other Investment 0
Income Income 2005 2006 2007 2008 2009
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2% 7% Year
» Ratio Analysis.

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» SWOT Analysis:

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•Unique System: 100% •No branch authority to

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Weaknesses
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Strengths

supervise credit, Related sanction investment.

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with shari’ah. a- 01 u m
•All the products are not
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•First in CAMEL rating offered.

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•Islamic minded people. •Globalization.

Opportunities

•Providing service.
Threats
•State law defers with the
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Islami Shariah.
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» Findings & Problems:

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˃ This is the only one Islami Banking branch of PBL in Sylhet.

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˃ It has huge number of customers.

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˃ The bank has a good relation with its customers.

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˃ The Islamic banking branches of PBL cannot invest in all economic
sectors.

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˃ Islami banking system has no strong promotional activities such as
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Advertizing, Public Relation etc.
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˃ The product mix is also not so good.

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˃ The profit rate of PBL is fixed.

˃ The overall default rate of PBL is very alarming.
˃ Contribution to total income by the investment is not so
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satisfactory.
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˃ Ratios are not so satisfactory.

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» Prime Bank Ltd. should invest more of its deposits in its

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investment area

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» The investment deposit ratio should not be more than 1:2

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» The product mix should be more efficient

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» The profit rate should not be fixed

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» They Should take promotional activities such as
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advertising, Public relation etc. against default
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» Prime Bank Ltd. Should have to take effective steps to

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remove the Misconceptions of Mass People

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Thanks to All
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