Risk Management and Financial Performance Analysis of Islami Bank Bangladesh Limited”

Abstract

Islami Bank Bangladesh Limited is the first interest free Islamic Shariah based commercial bank with an objective of catering Islamic Shariah based financial products. The main objective of this report is to analyze and focus on the overall investment risk management operations and performance analysis of IBBL. This report is prepared as requirement of the BBA program of Sonargaon University. This focus on two month working experiences in Rampura Branch, Dhaka. I tried my best to provide a clear idea about general banking activities & investment operational strategies of IBBL. The philosophy of Islami Banks is to establish as egalitarian society based on principle of Social justice and equity through CSR (Corporate Social Responsibility) and to fulfill this motive IBBL launch RDS, UPDS. They try to continuously promote these sections and discourage luxurious consumer investment products. As because of IBBL is an Islamic Bank based on ISLAMIC SHARIAH. In this report, I have shown 5 years graphical presentation on number of investment, amount of investment, total recovery, total outstanding and profit. It can properly express the actual situation of IBBL‟s consumer investment. The percentage of recovery of investment of IBBL is nearly 90 to 95% because bank considers strongly the entrepreneurs efficiency and integrity as well as five C‟s, which are- capacity, character, capital, condition, and collateral. From the last 2 years, IBBL‟s investment is progressing in a greater extent. Investment of the bank increased to taka 16362.58 million till 2014. Overall investment of IBBL up to 31st December 2014 is 305841 million, of which invests under Bai-Murabaha mode 57.92%, Bai-Muajjal mode 5.20%, Bai Salam 1.15%, Higher Purchase under Shirkatul Meelk (HPSM) 29.12%, & Musharakah mode 3.13%, Mudaraba mode 0.74%, Quard 1.83%, Foreign Bill Purchase (FBP) 0.91%. This increased investment growth of the bank is due to the thrust given to promote investment for effective utilization of depositors‟ fund. Final part of my report shows the future development planning and welfare program of IBBL on RDS and UPDS analysis. At the end of the report is my Findings and Recommendation, I provide my findings and conclusion on overall consumer investment of Islami Bank Bangladesh Ltd. and evaluating performance of my study.