Investment Activities

Investment Activities
Investment activities of Uttara Bank Limited (UBL) and Islami Bank Bangldesh Limited
(IBBL) are governed by different sets of rules and regulations. The investment activities of
UBL is concerned with leading money and getting it back with interest according to the Banks
own rules and regulations. Whereas the investment activities of IBBL are operated in
compliance with "Shariah".

Investment Activities of Uttara Bank Limited (UBL)

Uttara Bank always gives emphasis on investment of Funds in high yield areas simultaneously
maintaining Statutory Liquidity Requirement (SLR) as fixed by Bangladesh Bank. Uttara Bank
Limited is a primary dealer of Government securities. The Bank as a primary dealer is to
purchase the Bond/Bill which is put to auction in order to keep underwriting commitment.
Besides, one of the investment activities of the bank is to maintain Statutory Liquidity Reserve
(SLR) which mainly comprises Government Treasury Bill and Treasury bond of different
tenure, Prize Bonds, Government approved Debenture and ICB shares.

Loans and Advances

Uttara Bank has been targeting its participation in different credit programmes for financing
new industrial projects, working capital, trade finances, international trade etc. The Bank
continues to consolidate and diversify its portfolio to have a diversified client
base and portfolio distribution across the sectors to reduce client specific concentration
and industry specific concentration and to reduce overall portfolio risk. Sector wise allocation
of advances revealed a well diversified portfolio of the Bank with balanced exposure in
different sectors.

Agriculture Loan
The overall economic development of our country depends on Agricultural growth. With a
view to augmenting agricultural output, creating employment opportunities and generating
income of the rural people, Uttara Bank Limited intensified its efforts to extend credit facilities
to all sections of rural population under various rural credit schemes, programmes and projects
pertaining to agricultural and of farming activities. At present the Bank is disbursing agri
Loan to the farmers directly through all its branches with simple terms and conditions. The
persons interested in agricultural work, including men and women, landless/ marginal
farmers and shared croppers are eligible for receiving agri loan from the Bank. The agri
credit sectors of the Banks are crops, irrigation, equipment, agricultural machineries, livestock,
fisheries (including shrimp) and poverty alleviation etc.

SME Financing
SMEs are important to almost all economies of the world, but especially to those in developing
countries like Bangladesh. Financing in SME sector is a good opportunity to diversify the
portfolio risks. Small & Medium Enterprise (SME) remains the engine of growth in the
emerging economy. Uttara Bank Limited has been putting its emphasis on Small and Medium
Enterprise Financing in line with the Prudential Regulations/Guidelines of Bangladesh Bank.
The Banks strategy is to provide working capital and term loan to different small and medium
scale manufacturers, traders and service providers that fall under SME sector.

Personal Loan
Personal loan scheme has been introduced to extend credit facilities to cater the needs of low
and middle income group for any purpose.

Poverty Alleviation Sector Financing

Bank continues to extend commercial loan to the enthusiastic youths and small entrepreneurs
for various sectors through its different branches on priority basis during the year. For this
purpose the Bank disburses loan in dairy and poultry to obliterate the poverty and to create
employment opportunities for the destitute.

Financing in Women Empowerment Development Scheme

Uttara Bank believes that empowerment of women can be truly achieved if they get
opportunity to attain their economic emancipation. Women Empowerment Development
Scheme has been introduced in the Bank named Nari Shanirvar Rin Prokalpa to encourage
women in doing business in Small & Cottage industry and others.

Syndicated Finance
Syndicated loans allow arranging funds for large projects spreading the risk amongst the
partners Banks. Clients also enjoy the benefits of having access to larger pool of funds from
multiple financial institutions but have to deal with one Agent Bank and one set of
documentation. The Bank worked as a participating financial institution in syndication finance.
Corporate Finance
Uttara Bank Limited always adopt strategy for widespread service for the large and medium
sized corporate customers and Banks business is focused to a considerable extent on the
corporate clients by maintaining a relationship and extending financial assistance based on a
deep understanding of the clients business environments, financial needs and internal
strategies for growth. The Bank extends its financial support to the corporate clients either
from own finance or by arranging syndicated/club finance. The investment in corporate sector
is the combination of a mixed and balanced allocation in various natures of business/industries
based on the socioeconomic perspectives and long term planning.

Lease Finance
This scheme has been designed to assist and encourage the genuine and capable entrepreneurs
and professional for acquiring capital machineries, medical equipments, computers, vehicles
and other items. As part of its diversification of credit products Uttara Bank Limited introduced
Lease financing Scheme. The Bank continues to disburse loan under this Scheme. Major
sectors where the Bank has extended its business are mainly Imports and Exports, Commercial
Enterprises, Steel Re-rolling Mills, Readymade Garments, Textiles, Edible oil and Cement
Factories etc.
Investment Activities of Islami Bank Bangladesh Limited (IBBL)
Islami Bank Bangladesh Limited does not directly deal in money. They run business with
money. The funds of IBBL are mainly invested according to the different modes permitted by
"Shariah". "Shariah" means such rules and regulations as have their origin in the holy Qur'an
and Sunnah to govern all aspects of human life.

The special feature of the Investment Policy of the Bank is to invest on the basis of profit-loss
sharing system in accordance with the tenets and principles of Islamic Shari'ah. Earning of
profit is not the only motive and objective of the Bank's Investment Policy rather emphasis is
given in attaining social goal and objective in creating employment opportunities.

Islami Bank Bangladesh Limited adopts a number of modes for investment. Investment modes
of Islami Bank Bangladesh Limited are being outlined below:

BAI-MODES
Bai-Murabaha
The term Bai-Murabaha has been derived from Arabic words and ( Baiun and Ribhun).
The word means purchase and sale and the word means an agreed upon profit.
Bai-Murabaha means sale on agreed upon profit.

Bai-Murabaha may be defined as a contract between a buyer and a seller under which the seller
sells certain specific goods (permissible under Islamic Shariah and the Law of the land), to the
buyer at a cost plus agreed profit payable in cash or on any fixed future date in lump-sum or
by installments. The profit marked-up may be fixed in lump-sum or in percentage of the cost
price of the goods.

Profit is shared as per agreement.

Loss beared by client.
Amount can be paid on installment basis.
Usual duration 1-2 year(s).
Rebate may be given on Early Adjustment.
Bai-Istijrar
The term "Bai-Istijrar" has been derived from Arabic words and ( Bai and Zarra). The
word means to purchase and to sell and the word means to hoist, to lift up, pick up, bring
up. "Istijrar" ( ) means to purchase goods from time to time in different quantities. In
Islamic jurisprudence Istijrar is an agreement where a buyer purchases something under a
single agreement in different instalments. However, no offer and acceptance or bargain is
required each time. The deal will be considered as a single agreement where all terms and
conditions are finalized.
"Bai-Istijrar" is called such a buying and selling where a person keeps on taking delivery of
required commodities part by part from time to time from a supplier and no offer(Ijaab) &
acceptance (Qobul) and bargaining between them is taken place each time of making and
taking delivery.

Bai-Muajjal
The term Bai-Muajjal has been derived from Arabic words and ( Baiun and Ajalun).
The word means purchase and sale and the word means a fixed time or a fixed period.
" Bai-Muajjal " means sale for which payment is made at a future fixed date or within a fixed
period. In short, it is a sale on Credit Bai-Muajjal may be defined as a contract between a Buyer
and a Seller under which the Seller sells certain specific goods permissible under Islamic
Shariah and Law of the land) to the Buyer at an agreed fixed price payable at a fixed future
date in lump sum or within a fixed period by fixed instalments. The seller may also sell the
goods purchased by him as per order and specification of the Buyer. In this Bank, Bai-Muajjal
is treated as a contract between the Bank and the Client under which the Bank sells the goods,
purchased as per order and specification of the Client, to the client at an agreed price payable
at any fixed future date in lump sum or within a fixed period by fixed instalments. Thus it is a
Credit sale of goods by which ownership of the goods is transferred by the Bank to the Client
but the payment of sale price by the Client is deferred for a fixed period.
Bai Salam
The term Bai-Salam has been derived from Arabic words and ( Baiun and
Salamun). The word means purchase and sale and the word means advance. Bai-
Salam means advance purchase and sale.

Bai-Salam may be defined as a contract between a Buyer and a Seller under which the Seller
sells in advance the certain commodity (ies)/product(s) permissible under Islamic Shariah and
the law of the land to the Buyer at an agreed price payable on execution of the said contract
and the commodity (ies)/product(s) is/are delivered as per specification, size, quality, quantity
at a future time in a particular place.

In other words, Bai-Salam is a sale whereby the seller undertakes to supply some specific
Commodity (ies) /Product(s) to the buyer at a future time in exchange of an advanced price
fully paid on the spot. Here the price is paid in cash, but the delivery of the goods is deferred

Istisnaa
Istisna'a is a contract between a manufacturer/seller and a buyer under which the
manufacturer/seller sells specific product(s) after having manufactured, permissible under
Islamic Shariah and Law of the Country after having manufactured at an agreed price payable
in advance or by instalments within a fixed period or on/within a fixed future date on the basis
of the order placed by the buyer.

Bai-As-Sarf
Bai- as-Sarf is a contract of exchange of money for money. This contract is tightly regulated
under Shari`ah because it can be easily manipulated for the purpose of producing an interest-
bearing loan, which is prohibited in Islam. In pre-Islamic times gold was exchanged for gold,
silver for silver and gold for silver or vice versa. In Islamic law such exchange is regarded as
sale of price for price and each price is consideration of the other. It also means sale of monetary
value for monetary value i.e. currency exchange.

Ibn Rushd examines the three forms of sale that can arise in a market where goods and money
are in existence:

"When two commodities are exchanged, one may serve as a currency and the other as a priced
commodity, or both may be currencies. When a currency is exchanged for a currency the sale
is called 'sarf', and when a currency is exchanged for a priced commodity, the transaction is
sale property ('bay'). Similar is the sale of a priced commodity for another priced commodity
(barter)"

In respect of Bank, Bai-as-Sarf is a contract/agreement between the Bank and the Client under
which the Bank purchase the foreign currency against the Foreign documentary bill in advance
from the Client at specified/agreed exchange rate.

Bai-as-Sarf (FDB) is practiced for providing post shipment finance facility against Foreign
Currency export Bills and Bai-as-Sarf (FCD) is done for providing advance finance facility
against Foreign Currency Cheque /Draft

SHARE-MODES
Mudaraba
The term Mudaraba has been derived from one of the meanings of the Arabic word
which means Travel. Thus the word Mudaraba means Travel for undertaking business.
Mudaraba is a partnership in profit whereby one party provides capital and the other party
provides skill and labour. The provider of capital is called "Shahib al-maal", while the provider
of skill and labour is called "Mudarib".
So, Mudaraba may be defined as a contract of partnership where the Shahib al-maal provides
capital to the Mudarib for investing it in a commercial enterprise by applying his labour and
endeavor. Both the parties share the profit as per agreed upon ratio and the losses, if any, being
borne by the provider of funds i.e. Shahib al-maal except if it is due to breach of trust i.e.
misconduct, negligence or violation of the conditions agreed upon by the Mudarib. If there is
any loss incurred due to the reasons mentioned above, the Mudarib becomes liable for that.
Musharaka
The word Musharaka has been derived from the Arabic word Shirkat or 'Sharikat' (Shirk). In
Arabic, Shirkat or Sharikat or Shirk means partnership or sharing. Thus the literal meaning of
'Musharaka' is sharing though the connotation of this term is limited than the term Shirkat. The
term Musharaka has been introduced recently in Islamic Banking literature to mean a particular
type of Shirkat.

In Islamic Fiqh literature, Shirkat, in its primitive sense, signifies the conjunction of two or
more estates, in such a manner, that one of them is not distinguishable from the other. The term
Shirkat, however, is extended to contracts, although there be no actual conjunction of estates,
because a contract is the cause of such conjunction. In the language of the law it signifies the
union of two or more persons in one concern. It is the partnership between two or more persons
or institutions.

Musharaka may be defined as a contract of partnership between two or more individuals or

bodies in which all the partners contribute capital, participate in the management, share the
profit in proportion to their capital or as per pre-agreed ratio and bear the loss, if any, in
proportion to their capital/equity ratio.

In Islami Bank Bangladesh Limited (IBBL), the Bank may take part in a business with its
Client(s), where both the Client(s) and the Bank provide capital in fixed proportions, take part
in the management of business and share the profit in proportion to their respective capital ratio
or at pre-agreed ratio and bear the loss, if any, in proportion to their respective capital/equity
ratio.

IJARA-MODES

Hire Purchase Under Shirkatul Melk

Under this mode Bank may supply implements/ equipment/goods on rental basis. The
ownership of the implements/equipment/goods will be with the Bank and the client jointly and
the portion of the client will remain to the Bank as mortgage until the closure of the investment
account, but the client will be authorized to possess the equipment for certain period. The client,
after completion of the installments, will be the owner of the implements/ equipment/goods.
Stock Brokerage
Stock Brokerage of Uttara Bank Limited (UBL)
Stock Brokerage operations of Uttara Bank Limited are carried out by Uttara Bank Securities
Limited which is a subsidiary company of Uttara Bank Limited.

UBSL provides a number of services catering to the various needs of investors. The Services
offered by UBSL are being given below:

Beneficiary Ownership (B/O) Account Opening

Trading facility through Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange
(CSE)
Trading facilities for NRBs
Demate and Remate facility

Stock Brokerage of Islami Bank Bangladesh Limited (IBBL)

Stock Brokerage operations of IBBL are carried out by Islami Bank Securities Limited (IBSL)
which is a subsidiary company of Islami Bank Bangladesh limited (IBBL). Islami Bank
Securities Limited (IBSL) was incorporated in March 22, 2010 as a Public Limited Company
under Companies Act, 1994 with the objective to carry out business of Stock Broker & Dealer
in the capital market.

Products of IBSL
Principle of Musharaka
The Profit will be shared as per agreed ratio and Loss will be born as per equity participation.

Musharaka Investors' Discretionary Account (IDA)

Musharaka Standard
Deposit slab: From Tk. 1,00,000/-(Taka One Lac) to Tk.20,00,000/-(Taka twenty lac )
Profit ratio=60:40 (Client: IBSL)
Musharaka Premium
Deposit slab: From Tk. 20,00,001/-(Taka twenty lac one) to Tk. 1,00,00,000/-(Taka
One Crore)
Profit ratio=65:35 (Client: IBSL)

Musharaka Supreme
Deposit slab: From Tk. 1,00,00,001/-(Taka One Crore One) to Tk. 10,00,00,000/-
(Taka ten Crore )
Profit ratio=70:30 (Client: IBSL)

Musharaka Member's Discretionary Investment Accounts (MDA)

MDA Standard
Deposit slab: From Tk.1,00,000/-(Taka One Lac) to Tk. 20,00,000/-(Taka twenty lac )
Profit ratio=60:40 (Client: IBSL)

MDA Premium
Deposit slab: From Tk. 20,00,001/-(Taka twenty lac one) to Tk. 1,00,00,000/-(Taka
One Crore)
Profit ratio=65:35 (Client: IBSL)

MDA Supreme
Deposit slab: From Tk. 1,00,00,001/-(Taka One Crore One) to Tk. 10,00,00,000/-
(Taka ten Crore )
Profit ratio=70:30 (Client: IBSL)

Services offered by IBSL

IBSL provides a number of services catering to the various needs of investors. The Services
offered by IBSL are being given below:
Beneficiary Ownership (B/O) Account Opening
Trading facility through Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange
(CSE)
Trading facilities for NRBs
Demate and Remate facility
Rate of Interest/Profit Rate
Rate of Interest/Profit Rate
Interest is the reward for lending and the cost of borrowing. The interest rate is the percentage
rate charged on a loan or paid on deposits. Banks determines its rate of interest/profit rate based
on its liquidity requirement as well targeting profit.

Interest Rate Deposit Products of Uttara Bank Limited (UBL)

SN Deposit Products Date of Effect Rates
1 Fixed Deposit Receipt 16-Oct-16
i 3 months and above but less than 6 months 4.75%
ii 6 months and above but less than 1 year 4.75%
iii 1 year and above but less than 2 years 4.75%
iv 2 years ( not more than 2 years) 4.75%
2 Special Notice Deposit (SND): 1-Feb-16
i Less than 1.00 Crore 3.50%
ii 1.00 crore & above but less than 25.00 crore 3.75%
iii 25.00 crore & above but less than 50.00 crore 4.00%
iv 50 crore & above but less than 100.00 crore 4.25%
v 100.00 crore & above 4.50%
3 Saving Account (SB) 09-Nov-16
i Savings Bank Deposits 3.00%
4 Mashik Munafa Prokalpa (MMP) 1-Feb-16 6.00%
5 Double Benefit Deposit Scheme: (10 years) 10-Sep-16 7.20%
6 Monthly Deposit Scheme (Special Scheme): 9-Nov-16
(For 2,3 & 5 years)
i Uttaran Bibah Sanchay Prokalpa 6.50%
ii Uttaran Swapnapuran Sanchay Prokalpa 6.50%
iii Uttaran Shikkha Sanchay Prokapla 6.50%
7 MDS Deposit Scheme: (For 5 & 10 years ) 9-Nov-16 6.50%
Interest Rate Loan Products of Uttara Bank Limited (UBL)
SN Loan Products Rates
1 Agriculture/ Rural 10.00%
2 Term Loan to Industry (Loans to Manufacturing Concerns)
i Large Enterprise 11.00%
ii Medium Enterprise 13.50%
iii Small Enterprise 14.00%
iv Micro Enterprise 14.50%
v Cottage Industry/ Enterprise 14.50%
3 Term Loan to Others (Loans to Service and Trading Concerns)
i Large Enterprise 11.00%
ii Medium Enterprise 13.50%
iii Small Enterprise 14.00%
iv Micro Enterprise 14.50%
v Cottage Industry/ Enterprise 14.50%
4 Working Capital to Industries (Loans to Manufacturing
Concerns)
i Large Enterprise 11.00%
ii Medium Enterprise 14.00%
iii Small Enterprise 14.00%
iv Micro Enterprise 14.50%
v Cottage Industry/ Enterprise 14.50%
5 Working Capital to Others (Loans to Service & Trading
Concerns)
i Large Enterprise 11.00%
ii Medium Enterprise 14.00%
iii Small Enterprise 14.00%
iv Micro Enterprise 14.50%
v Cottage Industry/ Enterprise 14.50%
6 Export (PC/ OD against Export) 7.00%
7 Import (PAD, LTR & LIM)
i Large Enterprise 11.00%
 ii Medium Enterprise 14.00%
iii Small Enterprise 14.00%
iv Micro Enterprise 14.50%
8 Consumer Financing
ii Consumer (Household Durables) to other than Staff 16.00%
iii UHRL 12.00%
iv Personal Loan 16.00%
9 House Financing
i Residential 15.00%
ii Commercial 15.00%
10 Other Financing
i Overdraft
A. Loan Against DPS A. 3.50% + DPS
rate
B. Loan Against MDS B. 3.50% +
MDS rate
C. Loan Against FDR (Other Bank) C. 3.00% + FDR
rate
(Our FDR rate/
other bank FDR
rate; whichever
is higher)
D. Loan Against FDR (Our Bank) D. 3.00% +
FDR rate
E. Loan Against DBDS E. 3.50% +
DBDS rate
F. Loan Against MMP F. 3.50% +
MMP rate
G. Loan Against Share/ Securities 14.00%
H. Loan Against WEDB 14.00%
I. Loan Against any other FO 14.00%
J. Loan Against Work Order
(a) SME 14.00%
 (b) Other than SME 13.50%
K. Loan Against Surrendered value of Life Insurance 14.00%
L. Loan Against Other Securities 14.00%
M. Loans to NGOs 10.00%
N. RSTL (Revolving Short Term Loan) 9.75%
ii Lease Financing 12.00%
iii NBFI 12.00%
iv Syndication Financing 12.50%
v Inland Bill Purchase (IBP)
(a) SME 14.00%
(b) Other than SME 13.50%
vi Nari Swanirbhor Rin Prokalpa 10.00%
vii USBL 15.00%
viii Demand Loan (Created Under Forced Circumstances) 18.00%
NB.
a If PC/ OD against Export remain unadjusted beyond 21days, interest rate at 13%,
14% and 14% for Large, Medium and Small Industries will be charged respectively.
b 3% above the prevailing rate will be charged on overdrawn amount of any loan
though the bank management strictly prohibits such type of overdrawing.
c For OD against Cash Assistance (Cash Subsidy), Export Documents, Builtup
Securities (in the form of FDR) and others (Garments Sector), interest rate at 13%,
14% and 14% for Large, Medium and Small Industries will be charged respectively.
d Interest rate on UHRL will be fixed instead of floating. Revised rate (12%) on UHRL
will be applicable only on new sanction.
e In case of Temporary Additional Drawing (TAD), the rate of interest will be 2%
above the prescribed rate as per Instruction Circular No: 1496, dated: 03-11-2013
Provisional Profit Rate of Islami Bank Bangladesh Limited (IBBL) on Deposits

Rate
Deposit Type Deposit Accounts Name Term
(Provisional)

MSA Mudaraba Savings Account 3.6

SMSA Students Mudaraba Savings Account 3.6

MFSA Mudaraba Farmers Savings Account 3.8

MSND Mudaraba Special Notice Deposit Account 2.5

Mudaraba Special Savings (Pension)

MSSA 5 Years 6.3
Account

Mudaraba Special Savings (Pension) 10

MSSA 7.3
Account Years

MMPDSA Mudaraba Monthly Profit Deposit Account 3 Years 6.6

MMPDSA Mudaraba Monthly Profit Deposit Account 5 Years 7.2

1
MTDRA Mudaraba Term Deposit Receipt 4
Month

3
MTDRA Mudaraba Term Deposit Receipt 5.9
Months

6
MTDRA Mudaraba Term Deposit Receipt 6
Months

MTDRA Mudaraba Term Deposit Receipt 1 Year 6.2

MTDRA Mudaraba Term Deposit Receipt 2 Years 6.3

MTDRA Mudaraba Term Deposit Receipt 3 Years 6.5

MSBA Mudaraba Savings Bond 5 Years 6.5

MSBA Mudaraba Savings Bond 8 Years 7.4

MNRBSBA Mudaraba NRB Savings Bond Account 5 Years 6.6

 10
MNRBSBA Mudaraba NRB Savings Bond Account 7.5
Years

01 to 10
MHSA Mudaraba Hajj Savings Account 7.3
Years

11 to 25
MHSA Mudaraba Hajj Savings Account 7.6
Years

MWCDA Mudaraba Waqf Cash Deposit Account 8

MMSA Mudaraba Muhor Savings Account 5 Years 6.3

10
MMSA Mudaraba Muhor Savings Account 7.3
Years

MUSA Mudaraba Upohar Deposit Account 3.6

mCash mCash Deposit Account 2.5

Interest Rate Spread based on Monthly Weighted Average Rate of Interest on Deposits
and Advances

Interest Rate Spread Interest Rate Spread (Excl.

(Overall) Consumer Finance & Credit
Card)
Sl Name of Banks W. Avg. W. Avg. Spread W. Avg. W. Avg. Spread
No Deposits Advances Deposits Advances
June, 2017
1. Islami Bank 4.16 8.75 4.59 4.16 8.85 4.69
Bangladesh Ltd
2. Uttara Bank Limited 4.75 10.04 5.29 4.75 10.04 5.29
 Conclusion

Though conventional banks and Islamic banks strive for maximization the wealth of its
shareholders, they run their operations based on the different pillar of rules and regulations.
Conventional banks are governed by man-made rules and regulation whereas Islamic banks are
ruled by rules and regulations which are in compliance with "Shariah".

Investments in conventional banks are based on guaranteed principal and earning a fixed
amount of income. In Islamic banking, the concept of investment is different. Although the
customer deposits the money in order to earn extra income for her savings, her principal and
returns arent guaranteed. Suppose the Islamic bank loses money because of an unexpected
business failure. In this case, the bank isnt liable to pay the money to its customer.

Uttara bank Limited (UBL) charges interest even if the clients suffer from losses using the
banks funds. Therefore, UBL is not based on profit and loss sharing. Whereas Islami Bank
Bangladesh Limited (IBBL) operates on the basis of profit and loss sharing. As a result, even
if its clients have suffered losses, the bank will share these losses based on the mode of finance
used (Mudarabah, Musharakah).

At the end, we can say that both of conventional banks and Islamic banks have been operating
in our country suiting to different needs of different people of different sectors in our society.
Both of conventional banks and Islamic banks target their niche markets for their growth as
well as satisfying the needs of its clients.
 Vision of Uttara Bank Limited (UBL)

Uttara bank will be a unique organization in Bangladesh. It will be a knowledge based

organization where the Uttara Bank professionals will learn continuously from their customer
and colleagues worldwide too add value. They will work as a team, stretch themselves,
innovate and break barriers to serve customer loyalty through a value chain of responsive and
professionals service delivery.

Continuous improvement, problem solution, excellence in service, business prudence,

efficiency and adding value will be the operative words of the organization. Uttara bank will
serve its customer with respect and will work very hard to instill a strong customer service
culture throughout the bank. It will treat its employee with dignity and with built a company of
high qualified professionals who have integrity and believe in the bank vision and who are
committed to its success

Vision of Islami Bank Bangladesh Limited (IBBL)

Vision of IBBL is to always strive to achieve superior financial performance, be consider a

leading Islami bank by reputation and performance

Goal of IBBL is to establish and maintain the modern banking techniques to ensure the
soundness and development if the financial system based on islami principles and to become
the strong and efficient organization with high motivate professionals, working or the benefit
of the people, based upon accountability, transparency, and integrity in order to ensure the
stability of financial system

IBBL will try to encourage saving in the form of direct investment. IBBL will also try to
encourage investment particularly in projects, which are more likely to higher employment.
 Mission of Uttara Bank Limited (UBL)
To provide high quality financial service.
To provide excellent quality customer service.
To maintain corporation and business ethics.
To become a trusted repository of customer money and their financial advisor.
To make their stop superior and rewarding to the customer.
To display team sprite and professionalism,
To have a sound capital base.

Mission of Islami Bank Bangladesh Limited (IBBL)

To establish islami banking through the introduction of a welfare oriented banking system and
also ensure quality and justice in the field of all economics activities , achieve balance growth
and equitable development through diversified particularly in the priority sectors and less
development areas of the country . To ensure socio economic enlistment and financial service
to the low income community particularly in the rural areas.

Goals of Uttara Bank Limited (UBL)

Uttara bank will be the absolute market leader in the number of loans given to small and
medium sized enterprise throughout Bangladesh. It will be a world class organization in terms
of service quality and establishing relationship that help its customers to develop and grow
successfully. it will be the bank of choice both for its employee and its customer , the model in
this part of the world.

Goals of (Islami Bank Bangladesh Limited) IBBL

Goal of IBBL is to establish and maintain the modern banking techniques, ensure the soundness
and development if the financial system based on islami principles and to become the strong
and efficient organization with highly motivate professionals, working for the benefit of
people, based upon accountability, transparency, in order to ensure the stability of financial
system.
 Objective of the Uttara Bank Limited (UBL)
The objective of Uttara Bank limited is specific and targeted to its vision and to its position
itself in the mindset of the people as a bank with difference.

Building a strong customer focus and relationship based on integrity, superior service.
To creating an honest, open and enabling environment.
To value and respect people and make decision based on merit.
To strive for profit and sound growth.
To work as a team to serve the best interest of our owners.
To relentless in pursuit of business innovative and improvement.
To base recognition and reward on performance.
To finance the international trade both in import and export.
To develop the standard of living of the limited income group by providing consumer
credit.
To finance the industry, trade and commerce in both the conventional way and by
offering customer friendly credit service.

Objectives of Islami Bank Bangladesh Limited (IBBL)

To conduct interest free banking.
To establish participatory banking instesd of banking on debtor creditor relationship.
To invest on profit and risk sharing basis.
To accept deposits on mudaraba and Al wadeah basis.
To establish a welfare oriented banking system.
To extend cooperation to the poor , the helpless, and the law income group for their
economic up to liftmen.
To contribute towards balanced growth and development of the country through
investment operations particularly in the less developed areas.
To contribute in the achieving the ultimate goal of Islamic economic system.
 Interest of Uttara Bank Limited (UBL)
Uttara Bank Limited offers competitive interest rates for its deposit and loan products. Uttara
Bank Limited offers guaranteed interest for its deposit customers. The Bank also charges
interests in full even if its clients suffer from losses. Since, Uttara Bank Limited complies with
the principles of conventional bankings rules and regulations, it does not operate on the basis
of profit sharing with customers.

Profit Sharing of Islami Bank Bangladesh Limited (IBBL)

Profit or loss comes from investment in business activities. Profit is the result ownership
transaction and risk following the four stages:

Transformation through bai buying selling of goods.

Risk of transformation and ownership.
Other condition of shariah.
Result profit no loss.

Profit is the difference between the value of production and the cost production which is halal
according to Islamic Shariah.

IBBL operates on the basis of profit and loss sharing. As a result, when its clients suffered from
losses, the bank will share these losses based on the mode of finance used such as Mudarabah,
Musharakah etc.