Objective of the report

Methodology of the report

Limitation of the report
Islamic vs conventional
bank
Corporate profile
Theoretical aspect
Analysis.
Comparative analysis
Findings
reccomandation

To analyze different modes of
investment.
To seek out all the strengths,
weaknesses, opportunities & threats.
To compare with other conventional
banks.
To familiarize with the various
investment schemes.
To get the practical exposure of the
banking activities.
To adapt with the corporate
environment.



1.Research Design






2. Data collection method
a) Primary source
Branch Manager &
Second Officer.
Face to face
conversation with
employees and staffs.
Practical work
experience.
Face to face
conversation with
clients.

b) Secondary source
Annual Report of Islami
Bank Bangladesh Limited.
Various prescribed forms of
investment were analyzed.
IBTRA Library.
Manuals of Investment of
IBBL.
Different text books &
materials.
Website of the Islami Bank
Bangladesh Limited.


Lack of experiences has acted as constraints in the way of
meticulous exploration on the topic.
Unpublished data have not considered for the study.
Shortage of time for preparing the report in order.
The study was conducted mostly on secondary data.

Islamic Banking:
A banking system that is based on the
principles of Islamic law (also known
Shariah) and guided by Islamic
economics. Two basic principles behind
Islamic banking are the sharing of profit
and loss and, significantly, the
prohibition of the collection and
payment of interest. Collecting interest
is not permitted under Islamic law

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 1980, Bangladesh Bank, the
countrys 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.
Islami Bank Bangladesh limited was established in
March 1983 and started its operation in 27th March,
1983
To conduct interest-free banking.
To invest on profit and risk sharing basis.
To accept deposits on Mudaraba & Al-Wadeah basis.
To establish a welfare-oriented banking system.
To extend co-operation to the poor, the helpless and the low-
income group for their economic enlistment.
To play a vital role in human development and employment
generation.
To contribute towards balanced growth and development of the
country
through investment operations particularly in the less developed
areas.
To contribute in achieving the ultimate goal of Islamic economic
systems
To establish a well-balanced economic system.

BDT (Tk.) US Dollar ($)
Authorized Capital 20,000.00 Million 257.23 Million
paid-up Capital 14,636.28 Million 188.25 Million
Equity 45,511.90 Million 385.36 Million
Reserve Fund 29,149.01Million 374.91 million
Deposits 473,140.96 Million 6,085.41 Million
Investment
(including Investment in
Shares)
474,015.95 Million 6,096.67 Million

Foreign Exchange Business BDT (Tk.) US Dollar ($)
Import 285,890 Million 3,677.04 Million
Export 205,269 Million 2,640.12 Million
Remittance 286,956 Million 3,690.75 Million
a) Deposit Schemes
b) Investment Modes
c) Special Scheme
e) ATM Services
f) Special Services
g) Foreign Exchange Business

To maintain all types of deposit accounts.
To make investment.
To conduct foreign exchange business.
To conduct social welfare activities through Islami Banking
Foundation

Year Wise Deposits & growth rate of deposit of IBBL
20.45%
20.87%
19.50%
17.10%
22.23%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2009 2010 2011 2012 2013
Growth Rate of Year Wise Deposit
G
r
o
w
t
h

R
a
t
e

I
n

P
e
r
c
e
n
t
a
g
e

Years

Year 2009 2010 2011 2012 2013
Amount (TK in
Millions)
202115 244292 291,935 341853 417844
Growth Rate ( % ) 20.45% 20.87 % 19.5% 17.10% 22.23%
Table 5.1: Amount of Deposit and Deposite growth rate of IBBL
source: Annual Report of IBBL (2009-2013)
Figure 5.1: Year wise Amount of Deposit of IBBL
Figure 5.2: Year wise Deposit Growth Rate of IBBL
Year Wise Investment to Deposit Ratio
Analysis
Year Ratio
2009 89.08 %
2010 87.85 %
2011 90.17 %
2012 87.29 %
2013 85.18 %
89.08%
87.85%
90.17%
87.29%
85.18%
82.00%
83.00%
84.00%
85.00%
86.00%
87.00%
88.00%
89.00%
90.00%
91.00%
2009 2010 2011 2012 2013
Investment to Deposit Ratio
Investment to Deposit Ratio
Table 5.2 : Investment to Deposit Ratio of IBBL
Source: Annual Report of IBBL (2009-2013)
Figure 5.3: Investment to Deposit Ratio of IBBL
Year Wise Investment & Growth Rate
24.24%
19.20%
22.65%
16.19%
21.93%
0.00%
10.00%
20.00%
30.00%
2009 2010 2011 2012 2013
Growth Rate Investment
Growth Rate Investment
Year 2009 2010 2011 2012 2013
Amount(TK in Millions)
1,80,054 2,14,616 2,63,225 3,05,841 3,72,921
Growth Rate ( % ) 24.24% 19.20% 22.65% 16.19% 21.93%
Table: 5.3: Year Wise Investments
source: Annual Report of IBBL (2009-2013)
Figure-5.4: Year Wise Investments of IBBL
Figure- 5.5 : Investment Growth Rate of IBBL
Modes Wise Investment in 2013
Mode Amount in Million Taka % of total investment
Murabaha 2,21,632 59.43 %
Musaraka 13,719 3.68 %
Bai-Salam 4,532 1.22 %
HPSM 96,056 25.76 %
Bai-Muajjal 18,295 4.91 %
Bill Purchased & Nagotiation 9,531 2.56 %
Quard 9,156 2.46 %
Mudaraba 0 0.00% Table: 5.4 Year Wise Trend of Mode Wise Investment in 2013
Source: Annual Report (2013)
Figure-5.6: Mode Wise Investment of IBBL in 2013 (in Million Taka and Percentage)
Investment in Bai Murabaha
53.44%
54.60%
55.52%
57.92%
59.43%
50.00%
55.00%
60.00%
2009 2010 2011 2012 2013
Investment in Bai Murabaha
Investment in Bai Murabaha
Year 2009 2010 2011 2012 2013
Investment in Murabaha (Million tk.) 96,2,17 117180 146135 177136 221632
Percentage of Total Investment 53.44% 54.60% 55.52% 57.92% 59.43%
Table: 5.5 Year Wise Investment in Bai Murabaha
Source: Annual Report (2009-2013)
Figure-5.7: Year Wise Investment in Bai Murabaha (Million Tk)
Figure-5.8 Percentage of Investment in Murabaha
Investment in HPSM
35.08%
34.42%
30.42%
29.12%
25.76%
0.00%
10.00%
20.00%
30.00%
40.00%
2009 2010 2011 2012 2013
Percentage of Investment in HPSM
Trend of Percentage of Total
Investment in HPSM
Year 2009 2010 2011 2012 2013
Investment in HPSM (Million tk.) 63159 73871 80093 89070 96056
Percentage of Total Investment 35.08% 34.42% 30.42% 29.12% 25.76%
Table: 5.6 Year Wise Investment in HPSM
Figure-5.9 Year Wise Investment in HPSM (Million tk.)
Figure-5.10: Percentage of Investment in HPSM
Investment in Bai Mujjal
3.64%
3.41%
4.71%
5.20%
4.91%
0.00%
2.00%
4.00%
6.00%
2009 2010 2011 2012 2013
Percentage of Investment in Bai Mujjal
Trend of Percentage of Total
Investment in Bai Mujjal
Year 2009 2010 2011 2012 2013
Investment in Mujjal (Million tk.) 6550 7318 12393 15912 18296
Percentage of Total Investment 3.64% 3.41% 4.71% 5.20% 4.91%
Table: 5.7: Year Wise Investment in Bai Mujjal
Source: Annual Report (2009-2013)
Figure-5.11: Amount of Investment in Bai Mujjal
Figure-5.12: Percentage of Investment in Bai Mujjal
Investment in HPSM
35.08%
34.42%
30.42%
29.12%
25.76%
0.00%
10.00%
20.00%
30.00%
40.00%
2009 2010 2011 2012 2013
Percentage of Investment in HPSM
Trend of Percentage of Total
Investment in HPSM
Year 2009 2010 2011 2012 2013
Investment in HPSM (Million tk.) 63159 73871 80093 89070 96056
Percentage of Total Investment 35.08% 34.42% 30.42% 29.12% 25.76%
Table: 5.6 Year Wise Investment in HPSM
Figure-5.9 Year Wise Investment in HPSM (Million tk.)
Figure-5.10: Percentage of Investment in HPSM
Investment in Bai Mujjal
3.64%
3.41%
4.71%
5.20%
4.91%
0.00%
2.00%
4.00%
6.00%
2009 2010 2011 2012 2013
Percentage of Investment in Bai Mujjal
Trend of Percentage of Total
Investment in Bai Mujjal
Year 2009 2010 2011 2012 2013
Investment in Mujjal (Million tk.) 6550 7318 12393 15912 18296
Percentage of Total Investment 3.64% 3.41% 4.71% 5.20% 4.91%
Table: 5.7: Year Wise Investment in Bai Mujjal
Source: Annual Report (2009-2013)
Figure-5.11: Amount of Investment in Bai Mujjal
Figure-5.12: Percentage of Investment in Bai Mujjal
Investment in Bill Purchase & Nego

5.68%
5.26%
1.95%
0.91%
2.56%
0.00%
2.00%
4.00%
6.00%
2009 2010 2011 2012 2013
Percentage of Investment in Bill Purchase &
Nego
Trend of Percentage of Total
Investment in Bill Purchase
& Nego
Year 2009 2010 2011 2012 2013
Investment in Bill Purchase & Nego
(Million tk.)
10223 11289 5141 2744 9531
Percentage of Total Investment 5.68% 5.26% 1.95% 0.91% 2.56%
Table: 5.8: Year Wise Investment in Bill Purchase & Nego
Source: Annual Report (2009-2013)
Figure-5.13: Amount of Investment in Bill Purchase & Nego
Figure-5.14: Percentage of Investment in Bill Purchase & Nego
Investment in Quard E Hasana
1.19%
1.32%
0.80%
1.83%
2.46%
0.00%
1.00%
2.00%
3.00%
2009 2010 2011 2012 2013
Percentage of Investment in Quard E Hasana
Trend of Percentage of Total
Investment in Quard E Hasana
Year 2009 2010 2011 2012 2013
Investment in Quard E Hasana (Million tk.) 2151 2833 2095 5614 9156
Percentage of Total Investment 1.19 1.32% 0.80% 1.83% 2.46%
Table: 5.9 Year Wise Investment in Quard E Hasana
Source: Annual Report (2009-2013)
Figure-5.15: Amount of Investment in Quard E Hasana
Figure-5.16 : Percentage of Investment in Quard E Hasana
Investment in Bai Salam
0.95% 0.97%
1.38%
1.15%
1.22%
0.00%
0.50%
1.00%
1.50%
2009 2010 2011 2012 2013
Percentage of Total Investment in Bai Salam
Trend of Percentage of Total
Investment in Bai Salam
Year 2009 2010 2011 2012 2013
Investment in Bai Salam (Million tk.) 1719 2082 3624 3528 4532
Percentage of Total Investment 0.95% 0.97% 1.38% 1.15% 1.22%
Table: 5.10: Year Wise Investment in Bai Salam
Source: Annual Report (2009-2013)
Figure-5.17: Amount of Investment in Bai Salam
Figure-5.18: Percentage of Investment in Bai Salam
Investment in Mudaraba
0.00% 0.00%
0.57%
0.74%
0.00% 0.00%
0.20%
0.40%
0.60%
0.80%
2009 2010 2011 2012 2013
Percentage of Total Investment in Mudaraba
Trend of Percentage of Total
Investment in Mudaraba
Year 2009 2010 2011 2012 2013
Investment in Mudaraba (Million tk.) - 0 1500 2266 -
Percentage of Total Investment - 0.00% 0.57% 0.74% 0.00%
Table: 5.11: Year Wise Investment in Mudaraba
Source: Annual Report (2009-2013)
Figure-5.19: Amount of Investment in Mudaraba
Figure-5.20: Percentage of Investment in Mudaraba
Investment in Musharaka
0.02% 0.02%
4.65%
3.13%
3.68%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
2009 2010 2011 2012 2013
Percentage of Investment in Musharaka
Trend of Percentage of Total
Investment in Musharaka
Year 2009 2010 2011 2012 2013
Investment in Musharaka (Million tk.) 35 43 12244 9571 13719
Percentage of Total Investment 0.02% 0.02% 4.65% 3.13% 3.68%
Table: 5.12: Year Wise Investment in Musharaka
Source: Annual Report (2009-2013)
Figure5.21: Amount of Investment in Musharaka
Figure-5.22: Percentage of Investment in Musharaka
Sector Wise Investment in 2013
Sector Industry Commerce Real
Estate
Agriculture Transport SME
Amount (TK in
Millions)
108930 44488 23231 20992 6887 168393
In percentage 29.21% 11.26% 5.46% 5.78% 1.90% 46.39%
Table: 5.13: Sector Wise Investment in 2013
Source: Annual Report (2013)
Figure-5.23: Sector Wise Investment of IBBL in 2013 (in Million Taka and Percentage)
Industry Investment
55.11%
47.07%
43.30%
39.98%
29.21%
0.00%
20.00%
40.00%
60.00%
2009 2010 2011 2012 2013
Percentage of Total Investment in Industry
Trend of percentage of Total
Investment in Industry
Year 2009 2010 2011 2012 2013
Investment in Industry (Million tk.) 99233 101020 113979 122270 108930
Percentage of Total Investment 55.11% 47.07% 43.30% 39.98% 29.21%
Table: 5.14: Year Wise Trend of some Industry investment of IBBL
Source: Annual Report (2009-2013)
Figure-5.24: Amount of Investment in Industry
Figure-5.25: Percentage of Investment in Industry
Commerce Investment
28.51%
17.47% 17.53%
12.50%
11.26%
0.00%
10.00%
20.00%
30.00%
2009 2010 2011 2012 2013
Percentage of Total Investment in Commerce
Trend of Percentage of Total
Investment in Commerce
Year 2009 2010 2011 2012 2013
Investment in Commerce (Million tk.) 51332 37502 46142 38234 44448
Percentage of Total Investment 28.51% 17.47% 17.53% 12.50% 11.26%
Table: 5.15: Year Wise Commerce Investment
Source: Annual Report (2009-2013)
Figure-5.26: Amount of Investment in Commerce
Figure-5.27: Percentage of Investment in Commerce
Real Estate Investment
5.65%
4.03%
4.31%
5.55% 5.46%
0.00%
2.00%
4.00%
6.00%
2009 2010 2011 2012 2013
Percentage of Total Investment in Real Estate
Trend of Percentage of Total
Investment in Real Estate
Year 2009 2010 2011 2012 2013
Investment in Real Estate (Million tk.) 10172 8649 11336 16966 23231
Percentage of Total Investment 5.65% 4.03% 4.31% 5.55% 5.46%
Table: 5.16: Year Wise Real Estate Investment
Source: Annual Report (2009-2013)
Figure-5.28: Amount of Investment in Real Estate
Figure-5.29: Percentage of Investment in Real Estate
Agriculture Investment
5.06%
6.55%
5.41%
6.84%
5.78%
0.00%
2.00%
4.00%
6.00%
8.00%
2009 2010 2011 2012 2013
Percentage of Total Investment in Agriculture
Trend of Percentage of Total
Investment in Agriculture
Year 2009 2010 2011 2012 2013
Investment in Agriculture (Million tk.) 9110 14057 14252 20923 20992
Percentage of Total Investment 5.06% 6.55% 5.41% 6.84% 5.78%
Table: 5.17: Year Wise Agriculture Investment
Source: Annual Report (2009-2013)
Figure-5.30: Amount of Investment of Agriculture
Figure-5.31: Percentage of Investment in Agriculture
Transport Investment
2.27%
1.64%
1.74%
2.11%
1.90%
0.00%
1.00%
2.00%
3.00%
2009 2010 2011 2012 2013
Percentage of Investment in Transport
Trend of Percentage of Total
Investment in Transport
Year 2009 2010 2011 2012 2013
Investment in Transport (Million tk.) 4082 3520 4583 6457 6887
Percentage of Total Investment 2.27% 1.64% 1.74% 2.11% 1.90%
Table: 5.18: Year Wise Transport Investment
Source: Annual Report of IBBL (2009-2013)
Figure-5.32: Amount of Investment of Transport
Figure-5.33: Percentage of Investment in Transport
SME Investment
0.00%
22.99%
27.99%
33.02%
46.39%
0.00%
20.00%
40.00%
60.00%
2009 2010 2011 2012 2013
Percentage of Investment in SME
Trend of Percentage of Total
Investment in SME
Year 2009 2010 2011 2012 2013
Investment in SME (Million tk.) - 49337 72933 100991 168393
Percentage of Total Investment - 22.99% 27.99% 33.02% 46.39%
Table: 5.19: Year Wise SME Investment
Source: Annual Report of IBBL (2009-2013)
Figure-5.34: Amount of Investment of SME
Figure-5.35: Percentage of Investment in SME
Income from Investment
19543.84
21370.53
24766.26
32019.53
43672.23
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
2009 2010 2011 2012 2013
Amount (Million tk.)
Amount (Million tk.)
Year 2009 2010 2011 2012 2013
Amount (Million tk.) 19543.84 21370.53 24766.26 32019.53 43672.23
Table: 5.20: Year Wise Income from Investment
Source: Annual Report of IBBL (2009-2013)
Figure-5.36: Amount of Income from Investment
Income from Murabaha mode
62.33%
57.59%
57.10%
61.21%
63.03%
50.00%
55.00%
60.00%
65.00%
2009 2010 2011 2012 2013
Percentage of Investment Income
Income
Year
I
n

P
e
r
c
e
n
t
a
g
e

Year 2009 2010 2011 2012 2013
Investment Income ( in Million Tk ) 11,726 11,716 13,436 18,634 25,625
% of total Investment Income 62.33% 57.59% 57.10% 61.21% 63.03%
Source: Annual Report of IBBL Page-260, (2009-2013)
Table -5.21: Murabaha Total Investment IncomeinMillion Tk and the percentage of Income
Figure-5.37 :Amount of Murabaha Total Investment Income in Million Tk
Figure 5.38 : Murabaha Total Investment Income in percentage
Investment Income from Musaraka
Year 2009 2010 2011 2012 2013
Investment Income ( in Million Tk ) 322 551 891 1608 1650
% of total Investment Income 1.71% 2.71% 3.79% 5.28% 4.06%
Source: Annual Report of IBBL (2009-2013)
Table 4.22: Musaraka Total Investment Income in Million Tk and the percentage of Income
Figure 5.39:Amount of Musaraka Total Investment IIncome in Million Taka
Figure 5.40 : percentage of Musaraka Total Investment Income
1.71%
2.71%
3.79%
5.28%
4.06%
0.00%
2.00%
4.00%
6.00%
2009 2010 2011 2012 2013
Percentage of Investment Income
Investment
Year
I
n

P
e
r
c
e
n
t
a
g
e

Investment Income from Bai-Muajjal
5.03%
4.66%
4.97%
5.38%
5.86%
0.00%
2.00%
4.00%
6.00%
8.00%
2009 2010 2011 2012 2013
Percentage of Investment Income
Income
Year
I
n

P
e
r
c
e
n
t
a
g
e

Year 2009 2010 2011 2012 2013
Investment Income ( in Million Tk )
947 947 1170 1638 2382
% of total Investment Income 5.03% 4.66% 4.97% 5.38% 5.86%
Source: Annual Report of IBBL (2009-2013)
Table 5.23: Bai-Muajjal Total Investment Income in Million Tk and the percentage of Income
Figure 5.41: Bai-Muajjal Total Investment Income in Million Tk
Figure 5.42: Bai-Muajjal Total Investment Income in percentage
Investment Income from HPSM Total
Year 2009 2010 2011 2012 2013
Investment Income(in Million Tk ) 5,817 7,129 8,032 8,562 11000
% of total Investment Income 30.92% 35.04% 34.14% 28.13% 27.05%
30.92%
35.04%
34.14%
28.13%
27.05%
0.00%
10.00%
20.00%
30.00%
40.00%
2009 2010 2011 2012 2013
Percentage of Investment Income
Income
Year
I
n

P
e
r
c
e
n
t
a
g
e

Source: Annual Report of IBBL (2009-2013)
Table 5.24: HPSM Total Investment Income in Million Tk and the percentage of Income
Figure 5.43: HPSM Total Investment Income in Million Tk
Figure 5.44: HPSM Total Investment Income in Percentage
Classified Investment as a Percentage of
Total Investment
Years 2009 2010 2011 2012 2013
Classified Investment(in Million Tk) 4,311.13 5,063.40 4,655.63 8,292.32 14,212.8
0
Total Investment(in Million Tk) 1,80,054 2,14,616 2,63,225 3,05,841 3,72,921
Classified Investment as a % of Total
Investment
2.39% 2.36% 1.77% 2.71% 3.81%
2.39% 2.36%
1.77%
2.71%
3.81%
0.00%
2.00%
4.00%
6.00%
2009 2010 2011 2012 2013
Percentage of Classified Investment
Classified Investment
Table: 5.25: Year Wise Classified Investment as a Percentage of Total Investment
Source: Annual Report (2009-2013)
Figure-5.45: Amount of Classified Investment
Figure-5.46: Percentage of Classified Investment
Bad or Loss as a Percentage of Total
Investment
Years 2009 2010 2011 2012 2013
Bad or Loss (in Million Tk) 2810 2735 3238 4337 10823
Total Investment(in Million Tk) 1,80,054 2,14,616 2,63,225 3,05,841 3,72,92
1
Bad or Loss as a % of Total Investment 1.56% 1.27% 1.23% 1.42% 2.90%
Table: 5.26: Bad or Loss as a Percentage of Total Investment
Source: Annual Report (2009-2013)
Figure-5.47: Bad or Loss as a Percentage of Total Investment
Return on Investment (ROI) of IBBL
Years Return on Investment
(in Percentage)
2009 10.67%
2010 10.40%
2011 10.08%
2012 10.87%
2013 12.21%
Table 5.27: Percentage of Return on Investment

Figure 5.48: Percentage of Return on Investment
Deposit of IBBL as % of total National
Deposit
Year 2009 2010 2011 2012 2013
National deposit (Billion Taka) 2603.1 3037.8 3858.9 4484.4 5130.3
Deposit of IBBL (TK in Millions) 202115 244292 291,935 341853 417844
Deposit IBBL as % of total
National Deposit
7.76%
8.04%
7.57% 7.62% 8.14%
Table 6.1: Deposit IBBL as % of total National Deposit
Source: Annual report of IBBL & Bangladesh Bank (2009-2013)
Figure 6.1: Deposit IBBL as % of total National Deposit
Investment of IBBL as % of total
Investment
Year 2009 2010 2011 2012 2013
National (Billion Taka) 1939.9 2439.8 3297.5 3642.6 4743.8
Amount(TK in Millions)
1,80,054 2,14,616 2,63,225 3,05,841 3,72,921
Investment of IBBL as % of total
Investment
9.28% 8.80% 7.98% 8.40% 7.86%
Table 6.2: Investment of IBBL as % of total Investment
Source: Annual report of IBBL & Bangladesh Bank (2009-2013)
Figure 6.2: Investment of IBBL as % of total
Investment
Comparison of Investment to Deposit Ratio of
IBBL & National Investment to Deposit Ratio:
Year 2009 2010 2011 2012 2013
Industry Average (%) 75 80.3 85.5 79.7 86.7
IBBL (%)
89.08 87.85 90.17 87.29 85.18
Table 6.3: Comparison of Investment to Deposit Ratio of IBBL & National Investment to Deposit Ratio
Source: Annual report of IBBL & Bangladesh Bank (2009-2013)
Figure 6.3: Comparison of Investment to Deposit Ratio of IBBL & National Investment to Deposit Ratio
Non- performing Investment of IBBL as % of
total Investment
Year 2009 2010 2011 2012 2013
Industry Average 10.8 9.2 7.3 6.1 5.6
NPI OF IBBL
2.39 2.36 1.77 2.71 3.81
Table 6.4: Non- performing Investment of IBBL as % of total Investment
Source: Annual report of IBBL & Bangladesh Bank (2009-2013)
Figure 6.4: Non- performing Investment of
IBBL as % of total Investment
The total deposit of IBBL has increased over the years and the
deposit of IBBL as percentage of total national deposit has
increased over the years from 7.57% in 2011 to 8.14% in 2013.
This indicates that comparative deposit performance of IBBL has
increased over the years.

Investment during the year 2009 to 2013 has increased over the
years. The investment has increased from taka in Millions
1,80,054 to 3,72,921.
In the year 2013, IBBL invested their maximum portion in Bai
Murabaha mode (59%) which is amount of TK 2, 21,632 million
that 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. The second
maximum portion of investment is in HPSM mode which amount
in TK 96,056 million & in percentage is 26%. The bank invests in
other modes at lower percentage. The lowest portion was
invested in Bai- Salam at 1%.


The deposit as percentage of total national investment has
decreased in the years from 9.28% in 2009 to 7.86% in 2013. This
indicates that comparative investment performance of IBBL has
decreased over the years. It is not satisfactory position of IBBL so it
should try to increase its investment.
The total investment of IBBL has increased over the years but the
investment as percentage of total national investment has
decreased over the years from 9.28% in 2009 to 7.86% in 2013.This
downward trend of invest is negative sign for the bank.
There is a fluctuating trend in investment to deposit ratio of IBBL.
However, the investment to deposit ratio of IBBL is higher than
industry average over each year of analysis except in 2013.
This Bank revalues its investment operations within limited number
of investment modes and does not initiate investment modes
according to changing diverse needs of people.



Annual income of IBBL is massive comparing to other commercial
banks.
ATM service is very poor.
Server is very slow.
This Bank cant invest in all economic sectors which are prohibited
by the law of Islam.

IBBL should increase investment in agricultural sector because
Bangladesh is an agricultural country.
IBBL should initiate different investment modes according to
changing / diverse needs of clients by conducting huge research and
study.
Investment power should be decentralized.
Bangladesh is rural base country. So IBBL should increase their
investment in rural area.
IBBL should increase its investment in public sector, i. e. the bank
should involve profitably in this sector for the development of the
bank as well as the economy.
Bank should take corrective actions to reduce its upward trend of
outstanding amount of investment and careful to take investment
decision.
Attempt should be made for an improved information system
within the bank and within the investment clients unit.
Consider offering growth pre-investment and post investment
counseling to both potential and existing investors according to
their needs.
Repayment behavior of different types of clients play a important
role not only in the successful implementation of investment plan
but also in the cost-benefit analysis for the banks, there is need to
analysis in detail the repayment behavior at micro level. Such a
study provides proper guidance for the banks to be associated with
the clients at various stages of utilization of investment and its
repayment.
Investment plan commitment should be included in the budget of
each branch of the bank and progress should be regularly
monitored.

The productivity of the bank may be raised by better funds
management and portfolio management improving recycling of
funds and developing other income from the business activities of
the bank
It could increase its advertising as well as awareness regarding
Islamic investment modes.
The authority of IBBL should introduce more innovative and
modern customer service.
Investment should be provided in the SMEs sector for developing
entrepreneur investment.
IBBL should try to improve the deposit investment ratio for higher
productivity.
IBBL should encourage the people for Mudaraba & Musharaka
Investment.