“Comparative Analysis between Conventional and Islamic Bank” Banking System of Bangladesh: Background After the year 1971, Bangladesh was nothing but a war ravaged country. Like other sector the financial sector was also collapsed. Banking system was beasts with various problems like Bank offices were burnt, bankers were killed, and Properties of the banks were destroyed etc. To rescue the banking system from this critical situation the then government was taken some steps those are: • • • •
Appointment of Administrators. Banking operations were kept suspended. Restrictions on withdrawals of Deposits. Payment of TT, MT was suspended etc.
Nationalization of Banks in 1972: The most significant decision after the liberation war regarding banking system is to nationalize the banks of the country. Though the decision was very contradictory it was accepted by the young generation and freedom fighters. Banking in the Private Sector: To allow more competition in the market and to solve the increasing the problems in nationalized banking government decided to private sector Banking in 1976. Government leaves the 51% share of ‘International Finance Investment and commerce Limited’. In 1983 seven years after the establishment of I.F.I.C Limited the Government took two important decisions which are landmarks in the history of banking in Bangladesh. Two nationalized commercial banks, namely, Pubali Bank and Uttara Bank were denationalized. Structure of Banking System in Bangladesh: Bangladesh has a mixed banking system comprising nationalized, private and foreign commercial banks. Bangladesh Bank is the central bank of the country and is in charge of monetary policies of the Government and controls all commercial banks. The names of the selected banks by category are given below:List of Scheduled Banks (As on 30 June 2006) Nationalized/government controlled banks (4+5=9) Commercial banks (4) 1. Agrani Bank
2. Janata Bank 3. Rupali Bank Limited* 4. Sonali Bank Specialized banks (5) 1. Bangladesh Krishi Bank 2. Bangladesh Shilpa Bank 3. Bangladesh Shilpa Rin Sangstha 4. Bangladesh Small Industries and Commerce (BASIC) Bank Limited 5. Rajshahi Krishi Unnayan Bank Private commercial banks (30) 1. Al-Arafah Islami Bank Limited 2. Arab Bangladesh Bank Limited 3. Bangladesh Commerce Bank Limited 4. Bank Asia Limited 5. BRAC Bank Limited 6. Dhaka Bank Limited 7. Dutch Bangla Bank Limited 8. Eastern Bank Limited 9. Export Import Bank of Bangladesh Limited 10. First Security Bank Limited 11. International Finance Investment and Commerce Bank Limited 12. Islami Bank Bangladesh Limited 13. Jamuna Bank Limited 14. Mercantile Bank Limited 15. Mutual Trust Bank Limited 16. National Bank Limited 17. National Credit and Commerce Bank Limited 18. One Bank Limited 19. Prime Bank Limited 20. Pubali Bank Limited 21. Shahjalal Islami Bank Limited 22. Social Investment Bank Limited 23. South East Bank Limited 24. Standard Bank Limited 25. The City Bank Limited 26. The Oriental Bank Limited 27. The Premier Bank Limited 28. The Trust Bank Limited 29. United Commercial Bank Limited 30. Uttara Bank Limited
Foreign commercial banks (9) 1. 2. 3. 4. 5. 6. 7. 8. 9.
Bank Alfalah Limited Citibank N.A Commercial Bank of Ceylon Limited Habib Bank Limited National Bank of Pakistan Standard Chartered Bank State Bank of India The Hongkong and Shanghai Banking Corporation Limited Woori Bank
* In December 1986, it was decided to transform Rupali Bank into a Public Limited Company, keeping 51 percent ownership in the Government Sector. Subsequently, the above bank's ownership in the Government Sector was raised to 94.5 percent in 1996. The bank is now in the process of being privatised. Sources: Bangladesh Bank Annual Report Bangladesh: Some Selected Statistics Appendix – 2 Table-XXIV: Specialized Banks: These are the Banks which concentrate mainly on financing specialized economic and social activities. Specialized activities may be small and cottage industries financing, financing the rural asset less and less people etc.The main reason behind establishment of these type of bank was to provide Banking Services to the rural areas. Because PCB’s are not willing to go to rural areas and provide services in agriculture and some other specialized sectors. Islamic Banking 5.35 Alongside the conventional interest bearing banking system, Bangladesh entered into an Islamic banking system (profit-loss sharing) in 1983. At present, out of 48 banks in Bangladesh, 6 private commercial banks are operating as full-fledged Islamic banks and 10 conventional banks are partially involved in Islamic banking in a total of 20 branches. Box 5.2 provides a brief review on operations of Islamic banks in Bangladesh. Banking Sector’s Performance: Industry Statistics of the banking sector and the performances trends have been discussed here. The banking sector of Bangladesh comprises of four categories of scheduled banks. These are nationalized commercial banks (NCBs), government owned development finance institutions (DFIs), private commercial banks (PCBs) and foreign commercial banks (FCBs). The number of banks came down from 49 in 2004 to 48 in 2005 due to acquisition of American Express Bank by the Standard
Chartered Bank. These banks have a total number of 6412 branches (including 10 overseas branches) as of December 2005. The number of bank branches increased from 6303 to 6412 due to opening of new branches by the PCBs mainly during the year. Structure of the banking sector with breakdown by type of banks is shown in Table angladesh Bank: Like all the countries of the world, Bangladesh has also a central bank, namely, Bangladesh Bank. Its functions are similar to the functions of any other central bank of any country. Main functions of Bangladesh Bank are: issue of notes, regulation of the currency and monitoring and supervision of the banks and non-bank financial institutions It is wholly owned by the Government of the People’s Republic of Bangladesh. Its Board of Directors is also appointed by Government. CAMEL Rating Performance indicators of the banking industry depict a trend similar to that of the state owned banks, which is understandable due totheir predominant market share. Ratings done on the basis of the various indicators discussed hereinbefore indicate that financial performance of the PCBs and FCBs in general has been better than that of the industry average. However, 1 of the PCBs rated CAMEL 5 are still in the problems bank list out of 7 put in this category in the mid-nineties. Activities of the problem banks are closely monitored by the central bank with special guidance and care. Up to 2005, 6 such banks were taken off the problem bank list because of improved performance. Newly 3 banks were included in the problem bank list for their distressed financial position. At present 4 banks are in the problem bank list. BASEL At present, capital adequacy requirement of the banking sector in Bangladesh is based on Basel-I accord. Bangladesh has decided in principle to adopt the new capital adequacy framework finalized by the Basel Committee on Banking Supervision (BCBS) known as Basel-II. A plan for the implement of Basel-II in Bangladesh has also been chalked out. Cash Reserve Requirements (CRR) of Scheduled Banks with Bangladesh Bank In pursuance of the objectives of monetary policy, the amount of CRR has been increased to 5 percent from 4.5 percent of total demand and time liabilities of banks effective from 1 October 2005. However, banks are allowed to maintain CRR at the rate of 5 percent daily on bi-weekly average basis subject to the condition that the amount of CRR so maintained should not be less than 4 percent in any day. Statutory Liquidity Requirement (SLR) of Scheduled Banks The Statutory Liquidity Requirement (SLR) for the scheduled banks, excepting banks operating under the Islamic shariah and the specialized banks, was re-fixed at 18
percent from 16 percent on 1 October 2005 and remained unchanged thereafter. The SLR for the Islamic banks remained unchanged at 10.0 percent. The specialized banks continued to remain exempted from the SLR. Activities of Credit Information Bureau In the backdrop of huge non-performing loan of the banking sector of the country during the decade of the 1980s, a full-fledged Credit Information Bureau (CIB) was set up in 18 August 1992 in Bangladesh Bank under Financial Sector Reform Project (FSRP) of the World Bank. The main objective behind setting up of the Bureau was to minimize the extent of default loan by facilitating the banks and financial institutions with credit reports of the loan applicants so that the lending institutions do not encounter any credit risk while extending any lending or rescheduling facility. BANKS WE HAVE SELECTED Conventional Bank: EASTERN BANK LIMITED ISLAMIC BANK:
Eastern Bank Ltd. Company Profile Eastern bank Ltd. (EBL) is a second generation commercial bank with 28 online branches across major cities in Bangladesh and 690 full time employees on year end 2007. It offers full range of commercial banking products and services to the corporate, mid-market and retail segment. Under the corporate banking segments the Bank has comprehensive range of financial products including corporate deposit accounts, syndicated financing, term loan, project finance, export-import financing, working capital and other finance, bonds and guarantees, investment and business counseling, infrastructure finance, cash management services etc. with urban banking focus, the Bank is offering various alternative delivery channels like ATMs, Bills Pay Machines, Kiosks, and Internet Banking etc. The Bank has set up a brand image attributable in part to its policy of continuous customer service excellence, innovative products and services at competitive prices and maximum technology utilization. Unlike conventional branch banking, credit proposals as well as business operations are processed centrally at EBL. The bank also established its offshore banking activities in the year 2004. The Eastern Bank Limited was formed as a public limited company incorporated in Bangladesh with primary objective to carry on all kinds of
banking business in and outside Bangladesh. Eastern Bank Limited has also taken over the businesses, assets, liabilities and losses of erstwhile Bank of Credit & Commerce International (Overseas) Limited, ( hereinafter called BCCI) branches in Bangladesh with effect from 16th August, 1992 as they stood after reduction or adjustments in accordance with the provisions of the Bank of Credit & Commerce International (Overseas) Limited (Reconstruction) Scheme, 1992, hereinafter called the Scheme. The Bank is listed in the Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited. The Bank commenced its business with four branches from 16 August 1992. Number of branches as on 31 December 2007 were twenty eight. Offshore Banking Unit is a separate business unit of Eastern Bank Limited, governed under the Rules & Guidelines of Bangladesh Bank. The Bank obtained the Offshore Banking Unit permission vide letter no. BRPD(P)744/(89)/2004-303 dated January 25, 2004. The Bank commenced operations of this unit from May 19, 2004 and its office is located at 10, Dilkusha C/A (2nd floor), Dhaka. Corporate Information 1. Name of the Company: Eastern Bank Limited 2.
Year of Establishment: 1992
3.
Name of the Chairman: A. Q. I Chowdhury.
4.
Company Legal Form: Public Limited Company.
5.
Vision : To become “the bank of choice” by transforming the way we do business and developing a truly unique financial institution that delivers superior growth and financial performance and be the most recognizable brand in the financial services in Bangladesh.
6.
Mission : Deliver excellence service, maximize shareholders’ value, to maintain a cohesive and professional team in order to achieve service excellence, create an enabling environment.
7.
Service
8.
Products
: Deposit Lending service Investment Social welfare. : Credit Cards, Consumption Loan, SME Banking, ATM, Branch Bills Pay & Students Center.
EBL AT A GLANCE
All Figures in Million BDT Particulars 2003 Authorized Capital 1000 Paid Up Capital 828 Reserve 2560 Deposit & Other 11952 Accounts Loans & Advances 11288 Export 3533 Import (lc) 16256 Guarantee 354 Business Operating Income 1985 Operating Expense 1226 Operating Profit 759 Net Profit Before 638 Tax Core Capital (Tier- 2321 l) Supplementary 120 Capital (Tier-ll) Total Capital 2441 Total Risk 13355 Weighted Asset Total Asset 18716 Book Value Per 281.87 Share Market Value Per 382 Share Earnings Per Share 43.21 Dividend Per 20 Share Operating Profit 1533 Per Employee Operating Income 90227 Per Branch Return On Equity 15.33% Return On Asset 1.94% Cost to Income 28.17% Ratio Net Interest 2.47% Margin Ratio Classified Loan as 13.61% a % of Total Loans Tier -l- Capital 17.38% Ratio
2004 1000 828 2733 15649
2005 3300 828 3132 19396
2006 3300 828 3146 25734
2007 330 1035 3539 30092
14973 8303 24414 947
17758 13239 29692 555
26008 24286 39347 651
30962 26673 45298 1201
2241 1349 892 851
2957 1901 1056 967
4272 2913 1358 1134
5325 3454 1870 1286
2641
2837
3068
3279
161
333
537
755
2802 18829
3170 16901
3606 25721
4034 30687
23048 317.73
27400 370.93
35971 400.38
42579 358.63
780
1222.75
792.50
1070.75
58.38 43
66 40
49.58 45
40.50 34
1709
1970
2219
2711
101864
134412
170880
190179
18.44% 2.32% 30. 93%
19.17% 2.17% 33.66%
16.07% 1.62% 35.67%
11.93% 1.07% 33.73%
3.26%
2.81%
2.11%
3.34%
7.19%
5.41%
3.79%
4.31%
14.03%
16.79%
11.93%
10.68%
Tier - ll- Capital Ratio Total Capital Adequacy Ratio RWA TO Total Asset Number Of Branches Number Of Employees GRAPHICAL VIEW
0.90%
0.85%
1.97%
2.09%
2.46%
18.27%
14.88%
18.76%
14.02%
13.14%
71.36%
81.70%
71.50%
71.50%
72.07%
22
22
22
25
28
495
522
536
612
690
Balance Sheet Size Loans & Advances - Deposit
Cost to Income Ratio
Capital Adequacy Ratio
Non Performing Loan Ratio Trade Service Business
Share Holders Equity
Operating Profit Per Employee
EASTERN BANK LIMITED
Product and Investment
DEPOSIT
Interest calculated on daily balance Interest is credited to your account every month Competitive interest rate Unlimited cash withdrawal Available in all EBL Branches No extra terms and conditions
EBL Campus Campus Account: Under “EBL Campus”, yet another wonderful product that directly takes you into the rewarding world of general banking. It’s your very own, very special savings account with no hidden charges or restrictions, while giving you very attractive interest on daily balance, Plus a super-smart plastic in your wallet!
Interest bearing deposit account Interest calculated on the basis of daily balance No hidden charges or restrictions apply with regard to interest payment No standing in bank branch queues for withdrawal of money Leads you into the smart ... modern world of electronic banking- ATMs, POS terminals, Kiosks etc.
You need to be a student Minimum age 18 years Valid identification document (generally student ID Card) required for opening the account
EBL high performance account is committed to make a difference. You will see your money grow every day. This account has the security and growth of a Savings account as well as the convenience of current account-making things easier for you.
Interest calculated on a daily balance Minimum balance required: BDT 20,000 Unlimited cash withdrawal Highest interest rate compared to other similar accounts Available in all branches of EBL No extra terms and conditions apply Interest is paid twice a year
Minimum age: 18 years Citizen of Bangladesh
Idle cash is certainly not ideal for you. Your money can also breed money with EBL Repeat. EBL Repeat is a term deposit scheme and offers monthly return on you fixed deposit over a certain period. Not only your future is secured but also you earn the highest interest at present. Extra income every month! Under this scheme, minimum principal amount is Tk. 100,000 (Taka One Lac Only). There is no maximum principal amount limit. Accounts in multiple of Tk. 100,000 (Taka One Lac Only) can be opened. EBL repeat must be kept for a term of 1 year (12 Months)/ 2 Years (24 Months) / 3 years (36 Months). EBL Repeat can be opened by EBL Account Holders
only. All payments, principal & interest, shall be paid to the above specified EBL Account only.
See the magic of turning your monthly small amount of savings into a large amount over a period. You have the option to select the time and the amount of deposit as per your requirement. A perfect investment scheme to boost your confidence – the EBL Way.
At EBL, opportunities are as simple. Hook your possibilities with us and our new deposit scheme, EBL Just Double. The amount your deposit with us today gets double in just six years. .
Double Return of the initial deposit amount on maturity after six years (including tax). Minimum opening amount BDT 100,000. EBL Savings accounts is mandatory to open "EBL Just Double". If any depositor intends to withdraw his/her deposit before maturity, the following rules will apply:
No benefit including interest will be given for pre-mature encashment within one year. If the deposit is encashed after one year (& before maturity date) the depositor shall get Interest Rate @ 8% up to the
INVESTMENT
Loan Amount ranges from BDT 50,000 to BDT 1,000,000 ( or 12 times of gross salary, whichever is lower). Repayment tenure of 12, 24, 36, 48 or 60 months. Payment option available starting after minimum 6 months of disbursement of loan. Early full and final settelment allowed. No security required. No hidden charges.
Age : Minimum 22 years, Maximum 60 Years Professional Experience: Salaried Executives : 1 year Self employed Professionals: 2 years of experience
of
experience
Minimum monthly income: Salaried Executives : minimum BDT 15,000 / Self employed Professionals: minimum BDT 20,000 / month
Loan amount ranging from minimum BDT 50,000 to maximum BDT 150,000 (or 10 times of gross monthly income, whichever is lower) Repayment tenure of 12,24 or 36 months
month
Absolutely no processing fees Special discount in interest rate
Age : Minimum 22 years, Maximum 60 Years Professional Experience: Salaried Executives : Salaried Executives: 1 year of experience with minimum 6 months employment with current employer Self employed Professionals: 1 years practice in the profession Business: 2 years involvement in current business Minimum monthly income: Salaried Executives : minimum BDT 15,000 / month Self employed Professionals & Businessmen: minimum BDT 20,000 / month
Revolving credit facility Pre-determined amount of credit from your current account Interest charged only for the amount you have drawn Interest charged on quarterly basis Repayment at anytime during the stipulated period
Option of renewal at your request
EBL introduces the most convenient & practical Home Loan that suits your all home financing needs. Let it be for apartment purchase, home construction, extension or renovation - EBL is here with the ultimate solution for you. With so many attractive features in it - the home you wanted to buy, or to extend the existing one or renovate the same is no longer a distant dream.
Loan amount BDT 500,000 – 75,00,000 or 50 times of applicant’s Gross Monthly Income, whichever is lower Repayment tenure 3 years to 20 years Attractive Interest rates based on loan amount: Loan Amount BDT 5 Lac to 15 Lac
Interest Rate 14.00%
BDT 15 Lac+ to 25 14.25% Lac BDT 25 Lac+ to 40 14.50% Lac BDT 40 Lac+ to 75 15.00% Lac
EBL FastLoan is your personal short term loan facility from Eastern Bank Limited. With this, you can always have your choice to determine the repayment term. A fast way to meet your financial needs.
100% cash secured loan
Repayment tenure of 12, 24, or 36 months Competetive interest rates Early full and final settlement allowed Shortest possible processing time
Any earning individual having an FD or other securities like Wage Earner’s Bond, ICB unit certificate etc is eligible to apply
Loan amount ranges from BDT 350,000 to BDT 2,000,000 (upto 100% for brand new car and 70% for reconditional car) Competitive interest rates Repayment tenure of 12,24,36,48 or 60 months You have the option of pre-paying your loan after a minimum of 6 months of loan disbursement Early full and final settlement allowed
Age : Minimum 22 years, Maximum 60 Years Professional Experience: Salaried Executives: 3 year of experience Self employed Professional: 2 years practice Business: 2 years experience
Minimum monthly income: Minimum monthly income: BDT 30,000/month
Tk.
Travel Loan - Secured Loan amount 90% of the security deposit (EBL FD) Easy Monthly Installment Repayment - 12 months to 60 months Loan amount Tk. 50,000 - Tk. 500,000 Processing fee - 1% of the loan amount or Tk. 2,000 whichever is higher Advance/Partial prepayment allowed Loan disbursement directly to Customer Account No personal guarantee required 50% processing fee waiver for EBL Dual Currency Credit Cardholder 50% Dual Currency Credit Card Issuance fee waiver for TraveLoan borrowers
Travel Loan - Unsecured Easy Monthly Installment Repayment - 12 months to 60 months Loan amount Tk. 50,000 - Tk. 500,000 or 10 times of gross monthly income, whichever is lower Competitive interest rate. Processing fee - 1% of the loan amount or Tk. 2,000 whichever is higher Advance/Partial prepayment allowed 50% processing fee waiver
Like planting seeds in fertile soil, giving children the best education now will help them grow to reach their full potential. Many families like yours choose to send children abroad for higher education because you believe this will cultivate your child’s unique skills and talents in a supportive and nurturing environment. And while the cost of this may seem daunting, the benefits will last a lifetime. At EBL, we’ve developed the Education Finance Pack with three types of loan facilities so that you can select matching your need. Our Education Loan covers the entire cost of your child’s education to help you send your children for higher education abroad. So be it for home or abroad, for your child or for yourself – EBL Education Finance Pack is always beside you.
EduLoan Unsecured – Education Loan without Security Deposit EMI based loan facility Maximum loan amount BDT 10,00,000 or 10 times of Gross Monthly Income of the applicant Loan amount up to 80% of the summation of admission fee, tuition fee, semester fee, other fees as stated by the educational institutions, living/lodging expenses and traveling expense. Total expense estimation needs to be submitted by the applicant with supporting documents. Processing fee – 1.5% of the Loan amount Repayment tenor : 12 – 60 months
Advance / partial pre payment is allowed Interest Rate: 18% Student File services available Disbursement:
Study in Bangladesh: Initial admission fee & initial semester/tuition fee to be remitted directly to the institutions through Pay Order.
Study Abroad: Initial admission and initial semester/tuition to be remitted abroad through EBL Smart Student File. Payment for traveling expenses to be reimbursed through Pay Order favoring the travel agent.
EduLoan Secured - Education Loan with Security Deposit EMI based loan facility Loan amount is 95% of the security deposit (EBL FD) Processing fee – 1% of the Loan amount or BDT 10,000, whichever is higher Repayment tenor : 12 – 60 months Advance / partial pre payment is allowed Within same day processing No personal guarantee required Interest Rate: FD+3% Student File services available
EduLine – Credit Facility against Security Deposit Loan amount is 95% of the security deposit Advance / partial pre payment is allowed Interest against utilization only Within same day processing Processing fee – 1% of the Loan amount or Tk. 2,000, whichever is higher No personal guarantee required Interest Rate: FD+3% Student File services available
OTHER PRODUCTS
Any legal business purpose, loan facility minimum BDT 200,000 – maximum BDT 950,000 No collateral security required Loan tenure 1 month to 6 months Single shot payment at maturity but interest will be realized on monthly basis
Partial payment and early payment allowed- no additional fee required
Any successful enterprise with minimum two years in same or relevant business can apply for the loan Business cash flow to support the proposed loan in one shot Necessary documents of business required Bank account in the name of the enterprise or entrepreneurs Personal guarantee required
Any legal business purpose, loan minimum BDT 600,0000 – maximum BDT 5,000,000 Without land/building mortgage To be repaid within maximum 60 months. Loan repayable in monthly installments 50% of the loan amount in the form of fixed deposit is needed.
Any successful enterprise minimum one and a half years in same or relevant business can apply for loan. Business income to support the proposed loan installment Necessary documents of business are required Bank account in the name of enterprise or the
entreprenuers.
Any business purpose loan from Tk. 200,000 to Tk. 990,000 To be repaid within maximum 24 months (Next loan is repayable within 60 months) No requirment for collateral security Loan repayable in equal monthly installment
Monetary Policy and Islamic Banking in Bangladesh The central bank has the sole authority to issue currency and manage the liquidity of the economy.Among others, the objectives of the monetary policy is to ensure stability of the value of Taka and regulate the banking system prudently. As a central bank, Bangladesh Bank was not aloof from the ongoing changes in the world financial system. Bangladesh Bank had issued license in 1983 for establishment of the first Islamic bank in Bangladesh. The Bangladesh Government had participated in establishing the Bank, by subscribing five percent share in the paid up capital. Considering lack of Islamic financial markets and instruments or products in the country, Bangladesh Bank had granted some preferential provisions for smooth development of Islamic banking in Bangladesh. Among the preferential provisions, the following are important.
1. Islamic banks in Bangladesh have been allowed to maintain their Statutory Liquidity Requirement (SLR) at 10% of the total deposit liabilities while it is 20% for the conventional banks. This provision had facilitated the Islamic banks to hold more liquid funds for more investment and thereby generate more profit. 2. Under indirect monetary policy regime, Islamic banks were allowed to fix up their profit-sharing ratios and mark-ups independently commensurate with their own policy and banking environment. This freedom in fixing PLS ratios and Mark-up rates had provided scope for the Islamic banks to follow the Shariah principles independently for realizing goals of Islamic Shariah. 4. Role of Bangladesh Bank in Promoting Islamic Banking in Bangladesh Though there is no complete Islamic Banking Act for controlling, guiding and supervising the Islamic banks in Bangladesh, some Islamic banking provisions have already been incorporated in the amended Banking Companies Act, 1991 (Act No. 14 of 1991). Bangladesh Bank did not set up any separate Department at its Head Office to control, guide and supervise the operation of the Islamic banks. Inspection and supervision of the Islamic banking operations are conducted by the Bangladesh Bank as per the general guidelines framed for the conventional banks. So, ensuring implementation of Shariah principles in the Islamic banks are being conducted by their own Shariah Councils. The role of Bangladesh Bank in controlling, guiding and supervising the Islamic Banks in Bangladesh in accordance with Islamic Shariah is very minimal. In observing the Shariah implementation status of the Islamic banks, Bangladesh Bank examines only the report of the respective banks’ Shariah Councils. However, the inspectors and supervisors of Bangladesh Bank are not equally familiar with the technicalities of the different operational methodologies of the Islamic banking. This is because of the fact that there is no separate Department to look into this important matter. ISLAMI BANK
BANK PROFILE Shahjalal Islami Bank Limited a shariah based commercial bank was incorporated as a public limited company on 1st April 2001 under company act 1994. The bank commenced commercial operation on 10 th may 2001 by opening its first branch. In its Dhaka at 58 Dilkusa commercial area after obtaining the licence from Bangladesh bank,the central bank of Bangladesh. CORPORATE HEADOFFICE 10 DilkushaC /A , jibon bima bhaban, Dhaka 1000 , Bamgladesh
TOTAL BRANCH 26 Branches LEGAL FORM A public ltd company incorporated in Bangladesh on first April 2001 under the companies act 1994 and listed in Dhaka Stock Exchange limited and Chittagong Stock Exchange limited. WEBSITE WWW.shahjalalbank.com .bd CHAIRMAN Alhaj Akkas Uddin Mohammed MANAGING DIRECTOR Mohammed Ali NO OF EMPLOYEES 555 STOCK SUMMERY Authorized capital tk 2000 million Preferred capital tk 1872 million Face value per share tk 100 Vision To be the unique modern Islamic bank in Bangladesh and to make significant contribution to the national economy and enhance customer truest and wealth quality ,investment,employees./ MOTTO Committed to cordial services Financial summary SL 1 2 3 4 5 6 7
Items Authorized capital Paid up capital Total equity Core capital Supplementary capital Total deposit Total investments(loans
2007 2000 1872 3041 2788 253
2006 2000 936 1363 1205 158
2005 2000 936 848 741 107
2004 2000 467 340 268 72
2003 2000 231 296 253 43
22618 20617
18091 15516
12205 10590
9092 7149
6039 4269
8 9 10 11 12 13 14 15 16 17 18 19
20
21 22 23 24 25 26 27 28 29 30
& advances) Import business Export business Inward foreign remittance Total contingent liabilities and commitment Total income Total expenditure Operating profit/ (loss) Profit /loss (before tax) Profit/loss(after tax) Fixed assets Total assets Amount of provision against classified investment Amount of provision against unclassified investment Earning per share(taka) Book value per share(taka) Net asset value per shaee(taka) Investment to total deposit ratio(%) Return on equity(%) Return on assets(%) Operating income ratio(%) Net income ratio(%) Capital adequacy ratio(%) Cost of deposit(%)
25490 15084 4295
18684 11282 3535
13114 6295 690
10017 4240 67
5584 1755 15
7472
6020
4835
3172
1814
3589 2274
1621 1119766
841 766
536 512
1315
2563 1718111 9 845
502
75
24
1216
788
466
(852)
-
647
463
256
(473)
-
127 28,347 23
93 21343 21
83 14448 14
77 9742 13
71 6423 1
215
157
106
72
43
34.57
49.50
33.63
(204.91)
-
100
100
100
100
100
148.95
128.75
79.26
57.50
109.91
91.25
85.77
86.77
78.63
70.69
23.21
38.44
34.46
-176.07
-
2.28
2.17
1.76
-4.85
-
36.64
32.96
30.95
-96.18
5.52
18.03
18.07
15.76
-56.16
-
16.42
10.39
8.70
4.69
7.15
9.00
9.55
8.23
8.05
8.02
31 32 33 34 35
Cost of fund(%) Return on general investment(%) Number of branches Number of employees Number of shareholders
10.40 14.68
10.83 14.08
9.76 13.21
9.99 12.34
11.02 12.94
26
21
16
12
10
555
377
340
283
243
40966
19
19
19
19
Investment Portfolio of 2007 Investment Portfolio Mudabaha Bi-muajjal Hire-purchase Investment against L/C Inland bills purchase Investment in scheme Querd Other investment
Deposit and investment Balance Sheet Size
Loans &Investment Operating Profit Non Performing Loan Return on Equity
SJIBL Vision & Mission
From time immemorial Banks principally did the functions of moneylenders or "Mohajans" but the functions and scope of modern banking are now-a-days very wide and different. They accept deposits and lend money like their ancestors, nevertheless, their role as catalytic agent of economic development encompassing wide range of services is very important. Business commerce and industries in modern times cannot go without banks. There are people interested to abide by the injunctions of religions in all sphere of life including economic activities. Human being is value oriented and social science is not value-neutral. Shahjalal Islami Bank believes in moral and material development simultaneously. "Interest" or "Usury" has not been appreciated and accepted by "the Tawrat" of prophet Moses, "the Bible" of prophet Jesus and "the Quran" of Hazrat Muhammad (sm). Efforts are there to do banking without interest Shahjalal Islami Bank Limited avoids "interest" in all its transactions and provides all available modern banking services to its clients and wants to contribute in both moral and material development of human being. No sustainable material well being is possible without spiritual development of mankind. Only material well-being should not be the objective of development. Socio-economic justice and brotherhood can be implemented better in a God-fearing society. Shahjalal Islami Bank Limited accepts deposits on the basis of Mudaraba in the following types of accounts, and pays profit, like that of dividend in these accounts, except Alwadia Current Account. The relationship between banker and customer is not debtor-creditor relationship of conventional banks. The depositor is a partner in business with SHAHJALAL ISLAMI BANK LIMITED. Customers' deposit their fund in the following types of Accounts: Mudaraba Short Notice Deposit Account Mudaraba Savings Account Mudaraba Term Deposit Account Other Scheme Deposit Accounts Average 70% of profit earned by the bank is distributed proportionately among depositors annually.
SJIBL VISA Card Card is considered as a new dimension of product resulting from technological development in the banking arena. In line with our affiliation with VISA International for VISA ATMs and POS, the following two products are launched broadening service products of the Bank to the clients':
VISA Electron (SJIBL VISA Debit Card - local) VISA Prepaid (SJIBL VISA Prepaid Card)
SJIBL VISA Debit Card: To a customer, “My card, my money� concept is used for Debit Card. Any accountholder of SJIBL can apply for a SJIBL VISA Debit Card against his/her AlWadiah Current Deposit (AWCD), Mudaraba Savings Deposit (MSD) or Mudaraba Short Notice Deposit (MSND) Account. He/she is fully authorized to enjoy the benefits of cash withdrawal from ATMs, liberty of shopping, dining, paying utility bills and having access account information through SMS, etc. round the clock. SJIBL VISA Prepaid Card (Local): SJIBL VISA Prepaid Local Cards are open to the customers even having no account with Shahjalal Islami Bank Limited. Cardholders can have the card against prepayment and have access from anywhere in Bangladesh. SJIBL VISA Prepaid Local Cards are accepted locally at all VISA labeled merchant outlets, ATMs, etc. SJIBL VISA Prepaid Card (International): SJIBL VISA Prepaid International Cards are also open to the customers even having no account with Shahjalal Islami Bank Limited. Cardholders can have the card endorsing US Dollar paying against Travel Quota, Exporters Retention Quota or marking Lien of his/her FC Account. SJIBL VISA Prepaid International Cards are accepted world wide at all the VISA labeled merchant outlets, ATMs, etc. SJIBL VISA Prepaid Card (Dual): The Dual Card is a hassle free product, no need to carry two separate plastic cards for local and international card. Now, with one plastic card the Cardholders can enjoy all the benefits and make transactions locally & globally from their Prepaid card account at all the VISA labeled merchant outlets, ATMs, etc.
SJIBL VISA Souvenir Card (Gift Card – Local): SJIBL Souvenir Card is a very attractive and stylish product. Like a Gift Card, SJIBL Souvenir Card can be used by anyone wishes to. The intending customer may have the card instantly or may customize the card as required. The SJIBL Souvenir Cards are accepted locally at all the VISA labeled merchant outlets, ATMs, etc.
Deposit Product: Islamic Banks receive deposit under two Islamic Shariah Principles:01. Al-Wadiah 02. Mudaraba 01. Al-Wadiah: The word ‘Al-Wadiah’ have been derived from the Arabic word ‘Wada’yun’ which means to keep/ to deposit/ to give up/ Amanat. As per Shariah, Amanat means to keep something (goods/ money/ others) to any reliable person/ institution for safe and secured preservation of the same keeping its ownership unchanged and which will be returned to the owner on demand as it is/ in original shape/ in toto. In case of Amanat it cannot use, invest, and amalgamate with other without prior permission of the owner. But the concept ‘Al-Wadiah’ indicates to some extend addition to the concept of Amanat, in which there is a provision to obtain prior permission from the owner of the fund to use/ invest/ amalgamate with other and return the same on demand. Bank is here ‘Muaddah’ and depositor is ‘Muaddi’. A). The Depositor can deposit and withdraw any amount in this account. B). No profit is allowed in this account. C). The depositor shall also not bear any loss. 02. Mudaraba: The word ‘Mudaraba’ derived from the Arabic word ‘Darb’/ ‘Darbun’ which means movement to earn Rahmat (Munafa) of Allah. Mudaraba is a form of partnership where one of the contracting parties called the ‘Shaheb-al-Mal’/ ‘rabb-ul-Mal’ (i.e. the capital supplier/ depositor) who provide fund and act as sleeping partner while other party called the ‘Mudarib’ (i.e. Entrepreneur/ Bank) who manage use the fund efficiently to earn maximum profit. A). Two parties: Depositor- Saheb Al Mal & bank- Mudarib. B). Profit is paid to depositors at pre agreed ratio. C). Loss will be borne by Saheb Al Mal. Mudaraba Deposit Products of Shahjalal Islami Bank:a). Mudaraba Savings Deposit
b). Mudaraba Short Notice Deposit c). Mudaraba Term Deposit: - 1 Month - 2 Months - 3 Months - 6 Months - 1 Year. d). Mudaraba Hajj Scheme ( 1 year to 25 Years) e). Mudaraba Monthly Deposit Scheme: -5 Years. -8 Years. -10 Years. f). Mudaraba Millionaire Scheme: -12 Years. -15 Years. -20 Years. -25 Years. g). Mudaraba Double Benefit Scheme h). Mudaraba Monthly Income Scheme. Investment products 1. small business investment Scheme 2. Housing investment Scheme 3. Household durable investment Scheme 4. Bai-Muajjal(F.o)investment Schame 5. Car purchase investment Scheme 6. Medium entrepreneurs Scheme 7. Rural investment Program 8. Overseas employment investment Scheme 9. Investment Scheme for executives 10. Investment Scheme for C.N.G conversion 11. Investment scheme for Doctors 12. marriage investment Scheme small business investment Scheme Target groups: 1. Small businesses like wholesaler, Retailer, Small manufacturer, producers and traders etc 2.Self employeed persons. 3.Small & cottage industries. 4.other existing and new small businesses.
Command area: The investment under the scheme shall be made to the prospective investment clients located within municipal areas or within a radious of 10 kilometer branch. Mode of investment 1.hire purchase under shrikatul Meelk 2.Lease/Ijara 3.Bai- Muajjal-commercial –TR 4.Bai-Muajjal(term)
Ceiling of investment: The amount of investment shall be TK.50,000-to TK 5,00,000/-(taka fifty thousand to taka five thousand. Rate of Profit: Rate of profit/rent is 15.00% p.a Fees: 1.Application fees of tk 100.00 2.processing fees of tk 500.00 Supervision charge: Supervision charge will be @2.00% per annum Security: 1.hypothecation of stock or equipment. 2.post dated cheaque against each installment. 3.personnel guarantee of the client,spouse and adult son & daughter if any of the client Housing investment Scheme Target groups In service defense officers,university teachers,engineers.doctors,private and public jobholders. Ceiling of investment: Maximum investment limit will be tk 75.00 Rate of Profit: Rate of profit/rent is 15.50 % Fees:
&college
confirmed
1.Application fees of tk 500.00 2.processing fees @0.50% p.a Security: Registered mortgage along with registered irrevocable power of attorney authorizing the bank to dispose of the property including land where construction will be the made or flat of the apartment to be purchased. Household durable investment Scheme Purpose Facilitate investment to purchase household and durables to the different low & medium income honest businessman or professionals,and socio economic honest businessman/professionals,socio economic improvement of the countrythrough improvement of lifestyle of the low &medium income people. Basic features of the investment 1.Mode of investment: hire purchase under Shrikatul meelk. 2.period of investment: maximum 5 years 3.client’s equity: minimum 25 % profit & charges: Rate of profit 16.00% Service charge 1.00%p.a Risk fund 1.oo%p.a Repayment procedure: monthly installment basis Bai-Muajjal(F.o)investment Schame Mode of investment The investment facility under the scheme will only be provided as per “Bai-Muajjal” mode. Basic features of the investment 1.Revolving /term. 2.Repayable at a time or by installments. 3.In case of revolving facility maximum repayment period will be one year to renewal option. 4.In case of term facility maximum repayable period will be three year.
5.profit rate will be maximum 3.00% 6.the deposit account will be kept under lien/pledge with our bank as security. Car purchase investment Scheme List of purchasabal car under the scheme 1.private car 2.Microbus. 3.Jeep. Eligibility of the client getting investment: 1.government organization 2Semi-government & Autonomous Organization 3.Banks and financial institutions. 4.Executives/ officers working in any Multi-national companies 5.Any genuine businessman having valid trade license. profit & charges: Rate of profit @16.50%(mid rate) Service charge @1.00%p.a Risk fund @1.oo%p.a Security: 1. the ownership of the car will be in the name of the bank. 2. 1st class comprehensive insurance of the car is to be done for full investment period. 3. each client will be provide personal guarantee of two persons.
Medium entrepreneurs Scheme Purpose: To meet the working capital need of medium business and industries on short term basis profit & charges: Rate of profit @15.50%(mid rate) Service charge @0.50% to 1.00 % p.a on the approved limit Security: Collateral security to be provided in addition to primary security.
Overseas employment investment Scheme To provide financial support to the job seekers SME & Retail Investment Of the Bank SME is now considered as the thrust sector on investment. Contribution of SME to our national economy is very significant. The growth of GDP largely depends on catalytic role of Small & Medium Enterprise. Considering the importance of this sector the Govt. Policy Makers & the Regulators are encouraging all concerned to promote this sector for the sake of over all economic development of the country. Shahjalal Islami Bank Limited has timely stepped into this sector finding enormous potentiality, better yield and quickly returns. They have already introduced 2 products for small enterprise under the bran name of PROTTASHA. The products are1) Prottasha – investment for small enterprise and 2) Prottasha – investment for women enterprise. SME operational activities will be carried out across all branches of the bank as well as SME Service Canters. They have already opened 5 SME Service Centers at different locations of the country during 15-24 December, 2008 with the licenses obtained from Bangladesh Bank. Target groups: Small sized service, Trading and Manufacturing oriented business concerned according to the definition of Bangladesh bank on SME. Merchant banking: Shahjalal islami bank limited has also introduced the merchant banking service widely. CORPORATE SOCIAL RESPONSIBILITY As an Islamic bank and body corporate, Shahjalal Islami Bank Limited is quiet conscious about its social responsibility. 1. The bank has already formed Shahjalal Islami Bank foundation aiming at serving Humanity through different welfare activities giving emphasis health, habitual, &education sector. 2. Establish Shahjalal Islami Bank Hospital & Shahjalal Islami Bank International School & College. 3. The bank has declared Education award for the students securing first, second, third position in the MBA examination with Islamic Economic & Banking as one of the subjects under the department of Banking of the University of Dhaka.
4. The bank has distributed scholarship in the year 2008 to poor but meritorious students with outstanding result in secondary school and higher secondary examination. 5. The bank distributed goods amounting to tk.40 lac for the flood & SIDR affected peoples. 6. The bank donated Tk.40 lac to Chief adviser’s Relief fund and tk.20 lac to Army Relief Fund to help flood and SIDR affected peoples. 7. The bank has also drawn up programs to look after the education, health, &Medicare requirement of the people of rural areas where the bank has launched Rural Investment Program (RIP). Speacialized Bank in Bangladesh: In Bangladesh the necessity of specialized financial Banks first realized to meet the credit needs of the areas like, industry agriculture, small & medium enterprise, poverty alleviation employment generation etc.Considering such need of economy, different kinds of specialized banks evolved in different countries. In Bangladesh also several types of specialized banks evolved during the past three decades.They are involved in some special activities. Out of the specialized banks in Bangladesh some were created to meet the credit needs of the agricultural sector while the others are for extending term loans to the industrial sector. Speacialized Banks At a Glance: At present five specialized banks are running to satisfy the needs in industry agriculture, small & medium enterprise.Those are: •
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At a Glance: Incorporation: Bangladesh Krishi Bank (BKB) has been established under the Bangladesh Krishi Bank order 1973 (President's Order No 27 of 1973). BKB is a Banking Company under the Banking Company Act-1991. Its Head Office is located at Krishi Bank Bhaban,83-85 Motijheel Commercial Area, Dhaka-1000, Bangladesh. Capital: The Bank is guided in accordance with the policies and principles of the Government of the Peoples Republic of Bangladesh. BKB has an authorized capital of Tk. 10,000 Million (Taka Ten thousand Million) only and paid up capital of Tk. 4000 Million (Taka Four thousand Million) only which is fully paid by the government. The Bank started commercial functioning since 1977 to generate more loanable fund from the idle rural and urban savings and invest them for the betterment of our economy. Vision&Mission: Bangladesh Krishi Bank was established under BKB Order`1973 with the objective of strengthening rural economy by extending credit support to agricultural and agro-based sectors. In consideration of the importance of MicroCredit and with the objective of generating employment as well as encouraging social development BKB has undertaken several Micro-Credit programs of its own and also in collaboration with local and foreign agencies. The programs have been designed to cover all segments of poor population whether skilled or unskilled such as small and marginal farmers, landless labourers, destitute women, disabled, unemployed youth and rural artisans etc. About 1417047 beneficiaries have been provided with Tk. 14469.90 million since its inception (upto 30 September, 2008). Considering the needs of the target groups since late seventy`s BKB has been implementing a series of Micro-Credit programs out of which 10 programs have recently been completed and 31 programs are in operation at present. These diversified micro-credit programs are being implemented by BKB to achieve the following objectives: * To create employment opportunities through income generating activities. * To empower the rural women to establish their own rights. * To improve the living standard of the rural people. * To alleviate poverty of the poor people. * To make easy access to institutional credit facilities and resources. * To mobilize rural savings. * To make optimum utilization of rural resources. * To engage inactive human resources of the rural areas in productive/economic activities. * To engage rural people in development process of the country. * To eliminate exploitation done by the money lenders. Branches: The Bank operates its function through its 950 branches (except Rajshahi Division) of which 820 are rural and 130 are urban. It has 15 foreign exchange (Authorized dealer) branches. In the field level the Bank has 8 Divisional,21 Chief Regional and 30 Regional offices for close supervision of the branch activities At a Glance:
Incorporation:The Bangladesh Shilpa bank started its operation in October 31, 1972. Capital: Authorised : TK 2,000 million.Paid-up : TK 2,000 million Vision&Mission: Accelerating the process of industrialisation of the country by providing financial assistance and equity support. Functions: • Extends long and medium term loan facilities in local and foreign currencies to industrial projects (both new and BMRE) in the private and public sectors as well as partnership & proprietorship concern. • Provides working capital loans to Industrial units. • Provides equity support by way of participation in the equity of the company in the form of underwriting and bridge finance to public limited companies. • Issues guarantees on behalf of borrowers for repayment of loan. • Extends commercial banking service alongwith deposit mobilisation, forex business, L/C handling, forex remittances inland & outland. • Purchases and sells shares/securities for BSB and on behalf of customers as a member of Dhaka Stock Exchange (DSE) Ltd. and Chittagong Stock Exchange (CSE) Ltd. for capital market development and • Conducts project promotional activities alongwith preparation of various sub-sectoral study. • Involved in Capital market activitivies by way of under writing and extending bridge finance to public limited companies. Branches: Branch Offices- 15.
At a Glance: Incorporation: The Bangladesh Shilpa Rin Sangstha (B.S.R.S.) was created in October 31,1972 under the President’s Order No. 128 of 1972. On its creation, the undertaking of the Pakistan Industrial and Investment Corporation Limited, the Investment Corporation of Bangladesh and National Investment Trust Limited pertaining to Bangladesh area stood vested in the B.S.R.S Vision & Mission: To be recognized and accepted as a leading specialized Bank in Bangladesh.. • To serve the Customer with utmost care and responsibility. • To expedite industrialization process in Bangladesh. • To play unique role in capital Market development in Bangladesh. • To adopt Modern banking technique to serve the market. • To create a good work environment for employees and foster team work and career development. • To operate ethically and maintain transparency in operations. Branches: There are six branches in the country. At a Glance:
Incorporation: R.K.U.B was established by the presidential odience No. LVIII of 1986 dated July 09. R.K.U.B Capital: Authorized capital of the bank amounts to Tk 1500 million. Paid-up capital amounted to Tk 1500 million and reserve Tk 208.49 million as on 30 June 2005. Vision & Mission: As the largest development partner in the northwest region RAKUB aims at overall development of farmers and all the sectors and subsectors of agriculture in this region. The bank also performs functions like financing agri-business and agro-based industries and poverty alleviation programs Management: The Board is vested with the responsibility of formulation of policy in line with attainment of growth in agriculture and economic development of the region through agricultural credit support. The Board of Directors is constituted by seven members, all appointed by the government. Besides, for emergency decisions there is an executive committee constituted of the Chairman of the Board and two other members: the Managing Director and one of the Directors elected by the Board. The Managing Director is the chief executive of the bank. Branches: Besides catering to agricultural credit, RAKUB, as it is acronymed, renders deposit banking services through all the 357 branches. The headquarters of the bank is stationed at Rajshahi city, some 270 kilometer to the north of Dhaka At a Glance: Incorporation: BASIC Bank Limited (Bangladesh Small Industries and Commerce Bank Limited) registered under the Companies Act 1913 on the 2 nd of August, 1988, started its operations from the 21 st of January ,1989. It is governed by the Banking Companies Act 1991. The Bank was established as the policy makers of the country felt the urgency for a bank in the private sector for financing small scale Industries (SSIs). At the outset, the Bank started as a joint venture enterprise of the BCC Foundation with 70 percent shares and the Government of Bangladesh (GOB) with the remaining 30 percent shares. The BCC Foundation being nonfunctional following the closure of the BCCI, the Government of Bangladesh took over 100 percent ownership of the bank on 4 th June 1992. Thus the Bank is state-owned. However, the Bank is not nationalized; it operates like a private bank as before. Capital: Authorized capital Paid up capital Total Reserve and Surplus up to 31.12.2006 Tk. 2000 million Tk. 945 million. Tk. 1,294.00 million The Bank is required to transfer 20 percent of its net profit before Tax to Capital Fund as per the Banking Companies Act 1991. Vision&Mission: BASIC Bank Limited is unique in its objectives. It is a blend of development and commercial banks. The Memorandum and Articles of Association of the Bank stipulate that 50 percent of loanable funds shall be invested in small and cottage industries sector.
Branches: There are 30 branches in the country of BASIC bank. Statistical calculation Shahjalal Islami bank limited Mean Deposit=13609(million tk) Investment (loans and advance)=4628.2(million tk) Net profit after tax=178.6 (million tk) Standard Deviation Deposit=6015.47 Investment=7889.36 Net profit after tax=390.68 Statistical calculation
Mean: It indicates the average amount of Deposit, Investment/ Loans & Advances, Net Profit After Tax Variables EBL Deposit 20564.6 Loans & 20197.8 Advances/Investment Net Profit After Tax 949
SJIBL 13609 4628.2 178.6
D=Deposit L= Loans & Advances/Investment N=Net Profit after Tax Standard Deviation Variables EBL Deposit 6590.89 Loans & 7242.33 Advances/Investment Net Profit After Tax 199.40
SJIBL 6015.47 7889.36 390.68
D=Deposit L= Loans & Advances/Investment N=Net Profit after Tax Regression on Deposit and Loans & Advances X= Deposit Y= Loans & Advances Eastern Bank Regression Equation Y= 1.095X – 2320.43 If Deposit (X) = 10000 than Loans & Advances ( Y ) = 1.095*10000 – 2320.43 = 8629.57 ShahJalal Islamic Bank Ltd Regression Equation Y= 0.5368X + 4322.4 If Deposit (X) = 10000 than Loans & Advances ( Y ) = 0.5368*10000 + 4322.4 = 9690.4 Indicators used in measuring performance of Banking Industry General business measure Total Business (Total deposit + Total advances)
Bank EBL SIBL
2003 23240 10308
2004 36622 16241
2005 37154 22795
2006 51742 33607
2007 61054 43235
Deposit (Time Deposit + Demand Deposit) Bank EBL SIBL
2003 30092 6039
2004 25734 9092
2005 19396 12205
2006 15649 18091
2007 11952 22618
Advance deposit ratio (Advance / Deposit) Bank EBL SIBL
2003 94% 70.69%
Total Income Bank 2003 1985 EBL 536 SIBL
2004 95% 78.62%
2005 91% 86.76%
2006 101.06% 85.76%
2007 102% 91.15%
2004 2241 841
2005 2956 1621
2006 4272 2563
2007 5325 3589
2006 16.07% 38.44%
2007 11.93% 23.21%
Profitability Return on Equity (Net Income / Total Equity) Bank 2003 2004 2005 15.33% 18.44% 19.71% EBL _ -176.07% 34.46% SIBL
Management Soundness
Total Expenditure / Total Income Bank EBL SIBL
2003 68.18% 95.52%
2004 64.86% 91.08%
2005 69.21% 69.03%
2006 60.19% 67.03%
2007 61.76% 63.36%
2006 25 21
2007 28 26
Social Profitability Branch Expansion (Total Number of Branches) Bank EBL SIBL
2003 22 10
2004 22 12
2005 22 16
Employment Generation (Total Number of Employees) Bank EBL SIBL
2003 495 243
2004 522 283
2005 536 340
2006 612 377
2007 690 555