Overall Banking System of IBBL

Abstract

This report is prepared as requirement of the internship of BBA program of East West University. This report focuses two months working experiences in Kawran Bazar Branch, Islamic bank Bangladesh limited. This report will give a clear idea about activities and operational strategies of IBBL. Especially this report focuses on the general view of IBBL. Islami bank Bangladesh limited was established in March 1983 with a clear manifesto of demonstrating the operational meanings of parlicipatory economy, banking and financial activities as an integral part of an Islamic code of life. The philosophy of Islami banks is to establish as egalitarian society based on the principle of social justice and equity. As an integral part of this process Islamic banks introduced measures to abolish interest and change or pay fixed interest on loans or deposits. Interest of predetermined interest on deposits; the depositors participate in the profit of the bank as an agreed ratio. Whereas, interest based conventional banks pay a fixed interest on savings and time deposits and grant loans with interest for any purpose. It is important feature that Islam bank do not deals with money lending rather they deals with goods. l have invest money in various profitable business activities, either directly by themselves or in partnership with other, seeking to earn or share legitimate (Halal) profit. They have provision fbr Qard Hasana or beneficent loan in deserving case without any consideration of profit but return on the same. These are returnable, if and when the beneficial is able to repay. Investment management by Islami Bank and credit management by conventional interest based bank is synonymous. But Islami Bank deals with goods, which is measured by money and share profit or loss with the beneficiaries. On the other hand conventional bank directly deals with money or credit by the contract of pre-agreed fixed interest rate. As a kid in the banking industry IBBL is performing well as it have acquired the assets and human resources of higher quality. IBBL will be more effective in our economy by adopting modern financial technology by extending their activities in human & social welfare.