Reza Mahmud :
In an exclusive interview with The New Nation, Md. Omar Faruk Khan, Managing Director of Islami Bank Bangladesh PLC (IBBL) said the trend of deposits of the Shariah based bank is positive. The operation of the bank is running smoothly.
The IBBL MD freely shared the bank’s future initiatives and customer-friendly products with the daily on Thursday. He also focuses on the progress and potentials of the Islamic Banking in the country.
NN: How did the journey of Islami Bank begin?
IBBL: Islami Bank Bangladesh began its banking journey on March 13, 1983, as the first full-fledged Islamic Shariah-based commercial bank in the country. By introducing an interest-free banking system based on the principles of Islamic economics, the bank opened a new horizon in the financial sector of Bangladesh. The main objective of its establishment was to build a just and equitable economic system in the light of the Holy Qur’an and Sunnah, where investment and profit would be based on the principles of risk and profit-loss sharing.
From its inception, Islami Bank has played a significant role in small investments, export trade, agricultural development, industrialization, and various social welfare activities. Today, Islami Bank Bangladesh is recognized as the largest and most popular bank in the country, through which the success of Islamic banking has earned worldwide acclamation.
NN: Is the deposit increasing?
IBBL: Yes, our deposit trend is positive. At present, our total deposits amount to approximately Tk. 180,000 crore marking the highest deposit in the country’s banking sector. If I give you a trend position from 2023 to 2025 you can see that we have a consistent positive trend. By the end of 2023, our total deposits stood at Taka 153,306 crore which was about 9 percent higher than the previous year. In 2024, the growth trend continued and by the end of the year, our deposits reached Taka 161,000 crore. From January 2025 up to now, we have added a net deposit of nearly Taka 19,000 crore making our total deposits about Taka 1,80,000 crore. So, it can be said our deposits are consistently increasing.
NN: How is the bank’s operation running across the country?
IBBL: The operation of our bank is running smoothly and efficiently across the country. We have built a strong nationwide network consisting of 400 branches, 271 sub-branches and 2771 agent banking outlets that ensure financial services reach even the most remote areas of our country. Through this extensive network, we have been able to successfully promote financial inclusion bringing 25.00 million of unbanked and under-banked people under the umbrella of modern Shariah-based banking. Moreover, our digital banking services like Cellfin, i-banking, mCash and ATM-CRM networks have enhanced convenience for customers and strengthened our operational capacity.
We continue to play a vital role in economic development through CMSME investments, foreign remittance collection and distribution, and import-export financing. In addition, we maintain strong liquidity management and provide customers with reliable, satisfying financial transaction experiences. These efforts have created a positive impact in the banking sector, enabling us to open 3.2 million new accounts this year. Overall, our operations nationwide reflect steady growth, prudent management and an unwavering commitment to service excellence.
NN: Are there any special initiatives for opening new accounts?
IBBL: Yes, we have introduced several special initiatives to encourage new account openings and promote financial inclusion. Our focus is on making banking more accessible, convenient, and rewarding for all segments of society. We regularly organize nationwide account opening campaigns, particularly targeting rural and semi-urban areas to bring unbanked people into the formal banking system. We give special instructions to our agent banking outlets to give special attention to our customers so that they can easily open accounts near their homes with minimal times and utmost satisfaction. We have initiated a way to open accounts just using our Cellfin app. This system allows customers to complete the process securely from their mobile phones.
These initiatives have significantly contributed to our growing customer base and strengthened our commitment to inclusive banking.
NN: What is your share in the banking sector?
We command about 39.36% of deposits within the Islamic banking system that has a total deposit of Taka 457,207 crore. Besides, Islami Bank holds approximately 8.35% share of the overall sector’s deposits of Tk 20.21 lakh crore. In the area of financing we likewise hold the largest share—about 35.00 % of the total investments made by the full-fledged Islamic banks. Our remittance participation is about 18% of the banking industry. In cottage, micro, small, and medium enterprises financing our market share is 10.64 percent. We remain committed to further growing our market presence through expanding our units and services while upholding the highest standards of Shari’ah-compliant banking. Our goal is to build on this leadership, deepen customer trust and strengthen our contribution to the economy.
NN: Are there any obstacles in the bank?
IBBL: Now, the majority of the banks are facing challenges and we are no exception. The sector is going through liquidity pressure, rising default risks and some macroeconomic uncertainty. However, we are tackling these issues through prudent management, strict risk control and continuous digital transformation. Our fundamentals remain solid and we are confident in sustaining stability and growth.
NN: Does your bank offer any additional benefits?
IBBL: Our most acceptable benefit is the halal benefits that we offer. Being a Shari’ah based bank, I can assure you that the earnings from our bank is a halal benefit. Besides, we offer a wide range of additional beneficial services like Hajj and Umrah accounts, Shari`ah based credit card (Khidmah), interest free loan like Quard-e-hasana against fixed deposit and so on. Along with our regular deposit and investment services, customers enjoy digital banking facilities, attractive profit rates, cashback offers and easy banking facilities through more than 6000 outlets. We also provide special benefits for women, students and expatriates with specialized accounts designed with their needs and convenience.
NN: Are there any initiatives to introduce new products in the market?
IBBL: Yes, we are continuously working to introduce new and innovative Shari’ah-compliant products to meet the evolving needs of our customers. Several new deposits products and investment schemes are underway to cope with the needs of the modern time. We are also updating our Cellfin facilities with new experiences and widening mCash services to make banking faster, safer and more accessible for all segments of society.
NN: Are there any policy-related barriers in banking operations?
IBBL: Schedule banks are bound to follow the instructions and policy of the regulatory authorities. Regulatory authorities regulate policy for the betterment of the financial institutions. We are not facing any policy-related barriers. We maintain close coordination with Bangladesh Bank and relevant authorities to ensure full compliance. Our focus remains on maintaining stability and supporting the economy within the given policy framework.
NN: How is the banking sector performing after the change in government?
IBBL: Since the change in government, the banking sector has seen positive developments, including improved deposit growth, regulatory reforms and stronger oversight, which have boosted confidence in the system. However, challenges remain i.e non-performing loans are still high, some banks face weak capital positions and liquidity pressures persist. While the sector is gradually stabilizing, continued reforms and prudent management are essential to ensure sustained growth and resilience.
NN: What role are you playing in the national economy?
IBBL: As one of the leading banks in the country, our bank plays a significant role in the national economy. We mobilize savings, provide Shari’ah-compliant financing to businesses and households and support sectors such as SMEs, agriculture and exports. By promoting financial inclusion through our extensive branch and agent networks, we help bring unbanked populations into the formal economy. Our investments and banking services contribute directly to economic growth, job creation and overall financial stability in the country.
NN: What are the challenges in banking and your personal thoughts on them?
IBBL: The banking sector in our country faces several challenges. High non-performing loans, weak capital in some banks and liquidity pressure are major concerns. Additionally, adapting to digital transformation to ensuring cyber security remains a constant task. From my perspective, these challenges are manageable with prudent risk management, stronger internal governance and investment in technology. Banks must also focus on financial inclusion and customer trust for long-term stability and sustainable growth.
