Chapter Two: Overview of the Company

2.1 Background of the Company/ History of the Company

2.1.1. Al Arafah Islami Bank Ltd

With the objective of achieving success here & hereafter by pursuing the way directed by
Allah and the path shown by His Rasul (SM), Al Arafah Islami Bank Ltd was established
(registered) as a private limited company on 18 June 1995. The inaugural ceremony took
place on 27 September 1995. The authorized capital of the Bank is Tk.15000.00 million and
the paid up capital is Tk. 10440.22 million as on 31.12.2018. Renowned Islamic Scholars and
pious businessmen of the country are the sponsors of the Bank. 100% of paid up capital is
being owned by indigenous shareholders.
The equity of the bank stood at Tk. 2348.32 crore as on 31 December 2018, the manpower
was 3682 as on 31 December 2018 and the number of shareholders was 25793 as on 31
December 2018. It has achieved a continuous profit and declared a good dividend over the
years. High quality customer service through the integration of modern technology and new
products is the tool of the bank to achieve success. The bank has a diverse array of carefully
tailored products and services to satisfy customer needs.
The Bank is committed to contribute significantly to the national economy. It has made a
positive contribution towards the socio economic development of the country with 184
branches of which 25 is AD throughout the country.
2.1.2.Islami Bank Bangladesh Limited
Islami Bank Bangladesh Limited is a Joint Venture Public Limited Company engaged in
commercial banking business based on Islamic Shari'ah with 63.09% foreign shareholding
having largest branch network ( total 389 Branches, 228 Sub-Branches and 2705 Agent
Outlets) among the private sector Banks in Bangladesh. It was established on the 13th March
1983 as the first Islamic Bank in the South East Asia.
It is listed with Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. Authorized
Capital of the Bank is Tk. 20,000 Million and Paid-up Capital is Tk. 16,099.91 Million
having 33,686 shareholders as on 31st December 2021.
2.1.3 Social Islami Bank Ltd. (SIBL)
Founded in 1995, Social Islami Bank Ltd. (SIBL) is the country’s leading value-added
financial institution based on Shariah' Principles. SIBL comprises of SIBL Securities Ltd,
SIBL Investment Ltd, and SIBL Foundation Hospital. The three-tier banking model (Formal,
Non-formal & Voluntary), the first of its kind in the banking arena of Bangladesh, brings a
new dynamism in welfare banking targeting eradication of poverty of the country with a
motto of “Working Together for a Caring Society”. Working closely with our valued clients
and stakeholders to provide them one-stop services, access to the very latest products using
technology. Our unrivaled customer services has made us unparalleled in the industry. We
build a long-term business partnership with our clients helping them grow profitable.
 We are always ready to serve you with 4000 employees in 177 branches and 145 sub
branches across the country. It has also 290 Agent Banking Outlets to cater financial services
to the remotest parts of the Land.
The strong conviction to create a caring society is the cornerstone of SIBL’s all activities. We
feel a strong affinity to the emotions of people. We believe that only banking activities can’t
usher our society to a just and equitable stage. Thus we are extensively engaged in CSR
activities on humanitarian grounds. We work in the fields such as from poverty eradication to
family empowerment. Unlike others, the Bank’s criteria for success are not only the key
objective to make profit but also landmarks to become the country’s most humanitarian and
complete Bank.
2.1.4.Shahjalal Islami Bank Limited (SJIBL)
Shahjalal Islami Bank Limited (SJIBL) commenced its commercial operation in accordance with
principle of Islamic Shariah on the 10th May 2001 under the Bank Companies Act, 1991.
During these years SJIBL has diversified its service coverage by opening new branches at
different strategically important locations across the country offering various service products
both investment & deposit. Islamic Banking, in essence, is not only INTEREST-FREE banking
business, it carries deal wise business product thereby generating real income and thus boosting
GDP of the economy. Board of Directors enjoys high credential in the business arena of the
country, Management Team is strong and supportive equipped with excellent professional
knowledge under leadership of a veteran Banker Mr. Muhammed Shahidul Islam.
2.1.5.ICB Islamic Bank
The Bank has been incorporated on April, 1987 as a public limited company under the
Companies Act, 1913 to undertake and carry out all kinds of banking, financial and business
activities, transactions and operations in strict compliance with the principles of Islamic Law
(Shariah) relating to business activities in particular avoiding usury in credit and sales
transactions and any practice which amounts to usury. Certificate for commencement of
business has been issued to the bank on April, 30, 1987. The Bank has been authorized by the
Bangladesh Bank to carry on the banking business in Bangladesh with effect from May 4,
1987. However, actual banking operations commenced on May 20, 1987.

2.2 Mission
2.2.1. Mission . Al Arafah Islami Bank Ltd
 Achieving the satisfaction of Almighty Allah both here & hereafter.
 Proliferation of Shariah Based Banking Practices.
 Quality financial services adopting the latest technology.
 Fast and efficient customer service.
 Maintaining high standard of business ethics.
  Balanced growth.
 Steady & competitive return on shareholders’ equity.
 Innovative banking at a competitive price.
 Attract and retain quality human resources.
 Extending competitive compensation packages to the employees.
 Firm commitment to the growth of national economy.
 Involving more in Micro and SME financing.

2.2.2.Mission Islami Bank Bangladesh Limited

 To establish Islamic Banking through the introduction of a welfare oriented banking

system and also ensure equity and justice in the field of all economic activities,
achieve balanced growth and equitable development in through diversified investment
operations particularly in the priority sectors and least developed areas of the country.
To encourage socio-economic upliftment and financial services to the loss-income
community particularly in the rural areas.

2.2.3. MISSION Social Islami Bank Ltd. (SIBL)

 Establishing Three Sector Banking Model
 Transformation to a service oriented technology driven profit earning Bank
 Fast, accurate and satisfactory customer service
 Balanced & sustainable growth strategy
 Optimum return on shareholders’ equity
 Introducing innovative Islamic Banking Products
 Attracting and retaining high quality human resources
 Empowering real poor families and creating local income opportunities
 Providing support for social benefit organizations by way of mobilizing funds and
social services
2.2.4.Mission
Shahjalal Islami Bank Limited (SJIBL)

Uncompromised quality service and customer care.

Setting high standards of integrity.

Inclusive and innovative banking.

Sustainable value for all stakeholders.

Continuous development of professionals and system up gradation to face the challenges and
drive for excellence.

System Automation and digitization adopting the state-of art technology with full proof security
to ensure fast and accurate customer service.

Human Resources Development based on morality and ethics.

2.2.5.Mission:
ICB Islamic Bank
To constantly meet and exceed our customers’ expectations by challenging status quo and
crafting innovative Shariah compliant Islamic products and services to cater the diverse
requirements of our customers by constantly framing and refreshing transparent policies and
processes to keep our customers delighted. To ensure sustainable values:
 For our people by constantly creating difficult yet achievable challenges and
providing means of achieving them in the form of appropriate coaching, guiding and
training and fostering a competitive but meritocratic culture.
 For our partners by guaranteeing a soothing coexistence.
 For our shareholders by delivering them optimum returns on their investments.
 For the society we operate in by making meaningful impacts on the wellbeing of the
underprivileged of the society.

2.3 Vision
2.3.1.Vision
To be a pioneer in Islami Banking in Bangladesh and contribute significantly to the growth of
the national economy.

2.4 Objectives
2.4.1. Objectives
Islam provides us a complete lifestyle. Main objective of Islamic lifestyle is to be
successful both in our mortal and immortal life. Therefore in every aspect of our life we
should follow the doctrine of Al-Qur’an and lifestyle of Hazrat Muhammad (Sm.) for our
supreme success. Al-Arafah Islami Bank started its journey in 1995 with the said
 principles in mind and to introduce a modern banking system based on Al-Qur’an and
Sunnah.
A group of established, dedicated and pious personalities of Bangladesh are the architects
and directors of the Bank. Among them a noted Islamic scholar, economist, writer and ex-
bureaucrat of Bangladesh government Mr. A.Z.M Shamsul Alam is the founder chairman
of the bank. His progressive leadership and continuous inspiration provided a boost for
the bank in getting a foothold in the financial market of Bangladesh
A group of 20 dedicated and noted Islamic personalities of Bangladesh are the member of
Board of Directors of the bank. They are also noted for their business acumen. Al-Arafah
Islami Bank Ltd. has 184 branches (upto December 2020) and a total of 3682 employees
(upto December 2018). Its authorized capital is Taka 15000 million and the paid-up
capital is Taka 10440.22 million as on 31 December 2018.
Wisdom of the directors, Islamic bankers and the wish of Almighty Allah make Al-
Arafah Islami Bank Ltd. most modern and a leading bank in Bangladesh.

Commitments
 Customer focused modern Islamic banking sound and steady growth in both
mobilizing deposit and making quality Investment to keep our position as a leading
Islami bank in Bangladesh.
 To deliver financial services with the touch of our heart to retail, small and medium
scale enterprises, as well as corporate clients through our branches across the country.
 Business initiatives are designed to match the changing trade & industrial needs of the
clients.

2.5 Board of Directors

2.5.1. Board of directors:
1. Alhajj Salim Rahman CHAIRMAN, BOARD OF
DIRECTORS
2. Alhaj Abu Naser Md. Yeahea VICE CHAIRMAN, BOARD OF
DIRECTORS
3. Alhajj Abdus Samad CHAIRMAN, EXECUTIVE
COMMITTEE
4. Alhajj Mohammad Abdus Salam VICE CHAIRMAN,
EXECUTIVE COMMITTEE
5. Alhajj Badiur Rahman CHAIRMAN,
RISK MANAGEMENT COMMITTEE
6. Alhajj Mahbubul Alam INDEPENDENT DIRECTOR &
CHAIRMAN,
BOARD AUDIT COMMITTEE
7. Alhajj Nazmul Ahsan Khaled DIRECTOR
 8. Alhajj Abdul Malek Mollah DIRECTOR
9. Hafez Alhajj Md. Enayet Ullah DIRECTOR
10. Alhajj Ahamedul Hoque DIRECTOR
11. Alhajj Niaz Ahmed DIRECTOR
12. Alhajj Mohammed Emadur Rahman DIRECTOR
13. Alhajj Engr. Khandaker Mesbah Uddin Ahmmed DIRECTOR
14. Alhajj Liakat Ali Chowdhury DIRECTOR
15. Alhajj Md. Anowar Hossain DIRECTOR
16. Alhajj Md. Rafiqul Islam DIRECTOR
17. Alhajj Anwar Hossain DIRECTOR
18. Alhajj M. Kamal Uddin Chowdhury INDEPENDENT DIRECTOR
19. Farman R Chowdhury MANAGING DIRECTOR

2.3.2.Vision
Our vision is to always strive to achieve superior financial performance, be considered a
leading Islamic Bank by reputation and performance.
Our goal is to establish and maintain the modern banking techniques, to ensure soundness
and development of the financial system based on Islamic principles and to become the
strong and efficient organization with highly motivated professional, working for the benefit
of people, based upon accountability, transparency and integrity in order to ensure stability of
financial systems.
We will try to encourage savings in the form of direct investment.
We will also try to encourage investment particularly in projects which are more likely to
lead to higher employment.

2.4.1.Strategic Objectives
 To ensure customers' satisfaction.
 To ensure welfare oriented banking.
 To establish a set of managerial succession and adopting technological changes to
ensure successful development of an Islamic Bank as a stable financial institution.
 To prioritize the clients welfare.
 To emerge as a healthier & stronger bank at the top of the banking sector and continue
stable positions in ratings, based on the volume of quality assets.
 To ensure diversification by Sector, Size, Economic purpose & geographical location
wise Investment and expansion need based Retail and SME/Women entrepreneur
financing.
  To invest in the thrust and priority sectors of the economy.
 To strive hard to become a employer of choice and nurturing & developing talent in a
performance-driven culture.
 To pay more importance in human resources as well as financial capital.
 To ensure lucrative career path, attractive facilities and excellent working
environment.
 To ensure zero tolerance on negligence in compliance issues both sharia’h and
regulatory issues.
 To train & develop human resources continuously & provide adequate logistics to
satisfy customers’ need.
 To be excellent in serving the cause of least developed community and area.
 To motivate team members to take the ownership of every job.
 To ensure development of devoted and satisfied human resources.
 To encourage sound and pro-active future generation.
 To achieve global standard.
 To strengthen corporate culture.
 To ensure Corporate Social Responsibilities (CSR) through all activities.
 To promote using solar energy and green banking culture and ecological balancing.

Core Values
 Trust in Almighty Allah
 Strict observance of Islamic Shari’ah
 Highest standard of Honesty, Integrity & Morale
 Welfare Banking
 Equity and Justice
 Environmental Consciousness
 Personalized Service
 Adoption of Changed Technology
 Proper Delegation, Transparency & Accountability
Commitments
 To Shariah
 To the Regulators
  To the Shareholders
 To the Community
 To the Customers
 To the Employees
 To other stakeholders
 To Environment

2.5.2.Board of Directors
1. Mohammad Nazmul Hassan CHAIRMAN
2. Yousif Abdullah A AlRajhi VICE CHAIRMAN
3. Mohammed Shahabuddin VICE CHAIRMAN
4. Md Salim Uddin DIRECTOR
5. Mohammad Solaiman INDEPENDENT DIRECTOR
6. Abdul Matin DIRECTOR
7. Areef Suleman DIRECTOR
8. Mohammad Sirajul Karim DIRECTOR
9. Md Kamal Uddin INDEPENDENT DIRECTOR
10. Mohammad Joynal Abedin DIRECTOR
11. Dr Qazi Shahidul Alam DIRECTOR
12. Musaid Abdullah A AlRajhi DIRECTOR
13. Syed Abu Asad DIRECTOR
14. Tanveer Ahmad DIRECTOR
15. Mohammad Quamrul Hasan DIRECTOR
16. Dr Mohammad Saleh Jahur INDEPENDENT DIRECTOR
17. Md Fashiul Alam INDEPENDENT DIRECTOR

18. Khurshid Ul Alam DIRECTOR

19. Mohammed Nasir Uddin FCMA DIRECTOR
20. Md Kamal Hossain Gazi DIRECTOR
21. Mohammed Monirul Moula EX-OFFICIO DIRECTOR
22. Mr. J Q M Habibullah, FCS COMPANY SECRETARY

2.3.3 VISION
 Working together for a caring society

2.4.3.OUR VALUES
Honesty
 To be honest is ordained by the scripture – we stick to this value in all our service
provision.
Transparency
 Remaining transparent in all acts is a virtue that's builds trust - we adhere to it.
Efficiency
 Efficiency implies perfection in any job done - we strive to render full satisfaction
with it.
Accountability
 To be accountable is to be responsible and above any suspicion - we are dutifully
there.
Religiousness
 SIBL enhances economic wellbeing with regard to the bliss of religious ethics.
Innovation
 Our minds and eyes are open to the evolution in quality of life to innovate further
benefits for the service takers.
Flexibility
 Flexibility leads to better understanding and greater satisfaction - we pursue the
quality.
Security
 Customers must feel secure with all our products and services - we keep on ensuring
it.
Technology
 Modern life is technology dependent - we keep looking for the latest development to
provide the best in ease to our clients.

2.5.3.Board of directors
DR. MD. MAHBUB UL ALAM Chairman
MR. BELAL AHMED Vice Chairman
MR. MD. SAYEDUR RAHMAN Vice Chairman
MR. MD. KAMAL UDDIN Director
MRS. NARGIS MANNAN Director
DR. MD. JAHANGIR HOSSAIN Director
 MRS. JEBUNNESSA AKBAR Director
MR. ALI HASAN MD. MAHMUD RIBON Director
MR. ARSHADUL ALAM Director
MR. MAHMUDUL ALAM Director
PROFESSOR A J M SHAFIUL ALAM BHUIYAN, PH.D Independent Director
PROFESSOR MOHAMMED MIZANUR RAHMAN, PH.D Independent
Director
MR. ZAFAR ALAM Managing Director & CEO

2.3.4.Our Vision

Most admirable brand of shariah banking & investment in Bangladesh ensuring sustainable value
for all our stakeholders embodied with human development based on morality and ethics.

2.4.4.
Board of Directors
Mr. Mohammed Younus Chairman
Mr. Mohiuddin Ahmed Vice Chairman
Dr. Anwer Hossain Khan, MP Director
Mr. Md. Sanaullah Shahid
(Rep. of Electra International Ltd.) Director
Mr. Abdul Karim (Nazim)
(Rep. of Shamsuddin Khan & Harun Miah Ltd.) Director
Mr. Md. Abdul Barek Director
Mr. Abdul Halim Director
Mr. Akkas Uddin Mollah Director
Mr. Khandaker Sakib Ahmed Director
Engr. Md. Towhidur Rahman Director
Mr. A.K. Azad Director
Mr. Mohammed Nasir Uddin Khan
(Rep: Anwer Khan Modern Hospital Ltd.) Director
Mr. Fakir Akhtaruzzaman Director
Mr. Md. Moshiur Rahman Chamak
(Rep. of Fresh Export Import Limited) Director
Mrs. Tahera Faruque Director
Mrs. Jabun Nahar
(Rep. of Daffodils Trading International) Director
Mr. Fakir Mashrikuzzaman
(Rep. of Fakir Knitwears Ltd.) Director
Mr. Ekramul Haque Independent Director
Mr. K. A. M. Majedur Rahman Independent Director
Mr. Nasir Uddin Ahmed Independent Director
Mr. Mosleh Uddin Ahmed Managing Director

Nature of Business:
All kinds of commercial banking services are provided by the bank to the customers
observing the provisions of the Bank Company Act 1991, Bangladesh Bank's directives and
the principles of Islamic Shariah.
Significant Accounting Polices Basis of Accounting:
The accompanying financial statements, comprising Balance Sheet, Profit and Loss Account
and Notes thereto have been prepared according to Banking Companies Act, 1991 and
Bangladesh Bank circulars applicable to accounts, on a going concern basis, under historical
cost convention and are based on generally accepted accounting principles.
2.3.5.Vision:
ICB Islamic Bank is committed towards creating and maximizing sustainable values for all
its customers, employees, partners and shareholders and especially for the society it operates
in by delivering excellence in its offerings in all areas of banking and financial services
complying Islamic Shariah.
Consolidation:
A separate set of records for consolidating the Statement of Affairs and Income and
Expenditure Statements of the branches are maintained at the Head Office of the bank in
Dhaka from which these financial statements are drawn up. Branch Managers of respective
bank branches have certified the statement of affairs for the year ended December 31, 2016.

Balance with other banks and exchange gains or losses :

Balances with foreign banks at year-end are translated at the average of telegraphic transfer
of buying and selling rates. Excess/shortage of translated figures over book figures at year-
end is transferred to Profit and Loss Account.

2.5.5.BOARD OF DIRECTORS

Mohd. Nasir Bin Ali. Chairman

Mr. Md. Fariduddin Ahmed. Independent Director
Ms.Hashimah Binti Ismail. Director
Ms. Lee Ooi Kim. Director
Mr. Aklif Bin Amir Independent Director

2.6 Functions in Brief

2.8 Financial Highlights

Chapter Three: This chapter title or heading depends on the selected topic. Here, topic
related overall discussion will be included.

Chapter Four: Analysis

4.1 The heading depends on your topic i.e. topic related analysis.
Or 4.2 Financial Analysis: such as different ratio analysis, trend analysis to determine the
financial position of the institution (within different time, year, generally last five
years).
Or 4.3 Comparative analysis/ Industry analysis: here the student has to compare his/her
institution to industry and it will be based on the specified topic.
Or 4.4 SWOT analysis

What Is a Financial Performance Analysis?

Financial analysis refers to the process of studying and assessing a company’s financial
statements—a collection of data and figures organized according to recognized accounting
principles. The aim is to understand the company's business model, the profitability (or loss)
of its operations, and how it's spending, investing, and generally using its money—
summarizing the company by the numbers, so to speak.

A financial performance analysis examines the company at a specific period in time—

usually, the most recent fiscal quarter or year. The balance sheet, the income statement, and
the cash flow statement are three of the most significant financial statements used in
performance analysis.

Financial performance analysis can focus on different areas. Types of analysis can include a
specific examination of a firm:

Working capital: the difference between a company’s current assets, such as cash, accounts
receivable (customers’ unpaid bills), and inventories of raw materials and finished goods, and
its current liabilities
Financial structure: the mix of debt and equity that a company uses to finance its operations
Activity analysis: the factors involved in the cost and pricing of goods and services
Profitability analysis: how much money the business clears, after expenses and taxes