A S AU N IV E R S IT Y BANG LADESH
Chapter One: IntroductionIntroduction Objective of the Study Scope of the Study Limitation of the Study Methodology
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IntroductionBangladesh is one of the largest Muslim countries in the world. The people of this country are deeply committed to Islamic way of life as enshrined in the Holy Qur'an and the Sunnah. Naturally, it remains a deep cry in their hearts to fashion and design their economic lives in accordance with the precepts of Islam. The establishment of Islami Bank Bangladesh Limited on March 13, 1983, is the true reflection of this inner urge of its people, which started functioning with effect from March 30, 1983. This Bank is the first of its kind in Southeast Asia. It is committed to conduct all banking and investment activities on the basis of interest-free profit-loss sharing system. In doing so, it has unveiled a new horizon and ushered in a new silver lining of hope towards materializing a long cherished dream of the people of Bangladesh for doing their banking transactions in line with what is prescribed by Islam. With the active co-operation and participation of Islamic Development Bank (IDB) and some other Islamic banks, financial institutions, government bodies and eminent personalities of the Middle East and the Gulf countries, Islami Bank Bangladesh Limited has by now earned the unique position of a leading private commercial bank in Bangladesh.
Objective of the StudyThe major objectives of the present study are: 1. To present the Dividend of IBBL. 2. To highlight the planning & policies of IBBL to their customers. 3. To focus on facilities provided by IBBL to their customers. 4. To find out the practices & policies for providing dividend to their shareholders of IBBL. 5. To identify the problems in planning & polices of the Bank. 6. To recommend the possible lines of actions to overcome the problems & modify the policies of the Bank.2A S AU N IV E R S IT Y B AN G L A D E S H
Scope of the StudyThere is a large scope for doing the report in any Bank. This report provides practical knowledge to the students about Banks dividend policies & practices. The students have a great opportunity to acquire knowledge about the Banks policies & practices. After studying this report we will able to know about the Dividend processing, Mission, Vision, Aim & objective & so on about Islami Bank Bangladesh Ltd. By the report one can get information easily of this Bank.
Limitation of the Study This Bank is different from other traditional bank of Bangladesh for that their information is difficult to understand. The all information of IBBL isnt available & somewhere their information isnt clear. We all are student and we have to face financial difficulties. We have to answer some questions about our University those make us Confident less.
MethodologyThis paper has been prepared relying on primary and secondary information. Primary information has been obtained through the annual reports of IBBL and Interviewing concerned personnel of the bank with the help of a semi structured interview schedule. Sources of pertinent secondary information included our analysis and various publications of the Bank, journals, newspapers and websites.
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A S AU N IV E R S IT Y BANG LADESH
Chapter Two: Organization ProfileCorporate Information Mission & Vision Aims and Objectives Functions Product & Services
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Corporate Information(as on December 31, 2010)Date of Incorporation Inauguration of 1st Branch (Local office, Dhaka) 13th March 1983
30th March 1983
Formal Inauguration Share of Capital Local Shareholders Foreign Shareholders Authorized Capital Paid-up Capital Deposits Investment (including Investment in Shares) Foreign Exchange Business: Import Export Remittance Branches Total number of Branches Number of AD Branches Number of Shareholders Manpower
12th August 1983
41.77% 58.23% Tk. 20,000.00 million Tk. 7,413.10 million Tk. 291,347.00 million Tk. 292084.00 million
Tk. 246,281.00 million Tk.148,421.00 million Tk. 214,629.00 million
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Mission & Vision
MissionTo 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 through diversified investment operations particularly in the priority sectors and less developed areas of the country. To encourage socio-economic uplift and financial services to the low-income community particularly in the rural areas.
VisionOur 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 the soundness and development of the financial system based on Islamic principles and to become the strong and efficient organization with highly motivated professionals, 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.
Aims and Objectives1. To conduct interest-free banking. 2. To establish participatory banking instead of banking on debtor-creditor relationship. 3. To invest on profit and risk sharing basis. 4. To accept deposits on Mudaraba & Al-Wadeah basis.6A S AU N IV E R S IT Y B AN G L A D E S H
5. To establish a welfare-oriented banking system. 6. To extend co-operation to the poor, the helpless and the low-income group for their economic upliftment. 7. To play a vital role in human development and employment generation. 8. To contribute towards balanced growth and development of the country through investment operations particularly in the less developed areas. 9. To contribute in achieving the ultimate goal of Islamic economic system.
FunctionsThe functions of Islami Bank Bangladesh Limited are as under: 1. To maintain all types of deposit accounts. 2. To make investment. 3. To conduct foreign exchange business. 4. To extend other banking services. 5. To conduct social welfare activities through Islami Bank Foundation.
Products & Services
Deposit Scheme Al-Wadeeah Current Account Mudaraba Savings Account Mudaraba Term Deposit Receipt Mudaraba Special Notice Account Mudaraba Special Savings (Pension ) Account Mudaraba Hajj Savings Account Mudaraba Savings Bond Scheme Account7A S AU N IV E R S IT Y B AN G L A D E S H
Mudaraba Foreign Currency Deposit Scheme (Savings) Mudaraba Waqf Cash Deposit Account Mudaraba Monthly Profit Deposit Scheme Mudaraba Muthor Savings Deposit Scheme
Bai-Muajjal Bai-Murabaha Hire Purchase under Shirkatul Meelk Murabah Musharaka Bai-Salam Equity & Entrepreneurship Fund Of Bangladesh Bank
Special Schemes Household Durable Scheme Housing Investment Scheme Real Estate Investment Program Transport Investment Program Car Investment Scheme Investment Scheme For Doctors Small Business Investment Scheme Agriculture Implements Investments Investment Scheme Micro Industries Investment Scheme Mirpur Silk Weavers Investment Scheme
Rural Development Scheme
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ATM Services Facilities Getting IBBL ATM Card Cash Withdrawal Procedure Issuing Branches Location Of ATM Booths BTTB Bill Payment Procedure IBBL Schemes-Installment payment Procedure
Special Service Locker Service SWIFT Reuter
Foreign Exchange Business
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A S AU N IV E R S IT Y BANG LADESH
Chapter Three: Dividend & Dividend PolicyDividend Dividend Policy Analysis of Dividend policies of IBBL
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DividendDividend: Dividend refers to that portion of a firms earnings which are paid out to the shareholders. Forms of Dividends: Cash dividend Dividend can be paid in the forms other than cash: Stock Dividend Stock Repurchases
Stock Dividend (Bonus Share): The payment of dividend to the existing shareholders in the form of stock. Often firm pay stock dividends as a replacement for or a supplement to cash dividend. Firm find the stock dividend a way to give owners something without having to use cash. Generally, when a firm needs to preserve cash to finance rapid growth, a stock dividend is used. Stock Repurchase: The repurchase by the firm of outstanding common stock in the market place. Stock repurchase enhance shareholders value by; o Reducing the number of share outstanding and thereby raising earnings per share, o Sending a positive signal to investors in the market place that management believes that the stock is undervalued, and o Providing a temporary floor for the stock price, which may have been decline. Right Share: Existing shareholders will get priority to purchase share at the time of issuing of new common stock. This right is known as Pre-emptive Right.
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