IBBL works to restore depositors’ confidence

Staff Reporter :
In recent times, the money that was withdrawn from the banking sector in various rumors has started to return. Islami Bank has already returned about Tk 3000 crore of deposits. Gradually the rest of the money will come in the bank’s basket. The bank is celebrating its 40th anniversary this year. Islami Bank’s Managing Director (MD) and Chief Executive Officer (CEO) Muhammed Monirul Moula has highlighted the bank’s success story in a private interview with The New Nation (NN). Interview was taken by NN Senior reporter Al Amin.
NN: I want to know about the progress of Islami Bank.
Muhammed Monirul Moula: Islami Bank Bangladesh Limited (IBBL) started operations as the country’s first Shariah-based bank in 1983. Since then, Shariah-based banks started to expand in the country along with conventional banks. Currently there are 10 fully Shariah based banks. In addition, almost all banks have launched Shariah-based Islamic banking windows or Islamic banking branches in addition to conventional banking business. As a result, the share of Islamic banking in the banking sector is increasing steadily. Islami Bank is bringing new success one after another. The bank has become memorable in almost all areas including deposit, investment, import, export, remittance collection, industrialization, SME investment, entrepreneurship development, rural development, poverty alleviation and women empowerment. Islami Bank, a partner in national growth and development, is one of the largest contributors to the national exchequer.
NN: How did you achieve the top position in remittance collection?
Muhammed Monirul Moula: Islami Bank continues to make an important contribution to the foreign exchange reserves by collecting more than one-third of the country’s remittances. In 2022, Islami Bank collected import and export trade and remittances of Tk 75,404 crore, Tk 36,963 crore and Tk 45, 697 crore respectively. The Bangladeshi expatriates sent remittances worth Tk 4.33 lakh crores through Islami Bank in 40 years. The bank is working through 31 representatives in UAE, Oman, Saudi Arabia, Qatar, Jordan and Singapore to collect remittances through legitimate channels. There are international trade relations with 594 correspondent banks of the world. Besides, it has agreement with 155 institutions for remittance collection. Most of the expatriates work in the Middle East. About 54 percent of remittances come from the Middle East. Earlier, they used to send money illegally from these countries without finding an easy, safe and fast way to send it to Bangladesh. Islami Bank creates a framework for sending remittances from those countries through legal channels and makes expatriates aware through regular special campaigns.
NN: How much is the bank’s deposit?
Muhammed Monirul Moula: Islami Bank is the trusted custodian of people’s deposit money. Current bank deposits are more than Tk 1.42 lakh crore. This bank is working to meet the needs of every family in the country by creating savings mentality, entrepreneurship development and work-oriented life opportunities.
NN: How is the number of customers?
Muhammed Monirul Moula: At present, the number of customers of the bank is about 2 crores. The number of internet banking service users of this bank is at the top of the country’s banking sector. Islami Bank is in this position today as a result of constant trust, love and cooperation of customers and mass people.
NN: Can you say something about the role of banks in infrastructure development and industrialization?
Muhammed Monirul Moula: More than 6,000 industries in the country are being financed by Islami Bank. We have invested the most in the SME sector. Islami Bank is giving special importance to the SME sector for the purpose of employment, poverty alleviation, entrepreneurship development, regional disparity reduction, women’s empowerment, above all balanced and sustainable economic development. Bank’s market share in housing investment of the country is more than 10 percent. About 1.2 million people have been ensured housing through investment in this sector. About 18 percent of the total investment in the transport sector is of Islamic banks. The number of registered vehicles invested by the bank is currently more than half a million.
NN: How is IBBL’s investment in rural development?
Muhammed Monirul Moula: Islami Bank launched Rural Development Scheme (RDS) in 1995. Under this project there are awareness creation, skill enhancement, training, savings formation, investment activities in various income generating activities among the rural poor people. Since 2012, the ‘Urban Poor Development Project’ has been working for the poor people including slum dwellers in urban areas. More than16 lakh members of this project spread over 32 thousand villages. 94 percent of which are women.
NN: I want to know about your awards in banking services.
Muhammed Monirul Moula: Islami Bank was ranked as the only bank in Bangladesh in the list of top 1000 banks in the world in 2012 in the evaluation of ‘The Banker’, a famous UK based banking magazine. In this sequence, Islami Bank is in the list of top banks in the world for 12 consecutive times. Currently, the position of the bank is 882ndin this list. Islami Bank has won the World’s Best Islamic Bank Cibafi Award. Islami Bank has received various national and international recognitions including Tax Card Award 2022, ICSB Gold Award, ICMAB Best Corporate Gold Award.
NN: How important is the bank in investing in the agricultural sector?
Muhammed Monirul Moula: More than two thousand agriculture-based industries have been developed with the financing of Islami Bank. Out of these 26 jute mills are being operated. More than 17 per cent of the jute products produced in the country is produced in institutions financed by Islami Bank. Besides, it financing is the highest in the import of fertilizers at the private sector. Over half a hundred have funded cold storage for storing perishable agricultural produce. Some 852 auto rice mills have been set up with bank financing. Islami Bank has provided the first financing for setting up the country’s first auto rice mill and bran oil mill (rice bran to edible oil factory).
NN: Thank you for being with us.
Muhammed Monirul Moula: You are also most welcome.