A comparative study of operational activities Between Islamic Banking & Conventional Banking

Abstract

Islami Bank Bangladesh Limited is one the reputed and most successful bank in Bangladesh. It started its journey at 1983. Last year in Bangladesh It generated the highest profit in the banking sector. And it also received the highest remittance from abroad. This report will provide a precise idea about the General activities and performance of Islami Bank Bangladesh Limited (IBBL). Basically this report emphasizes on the Operational activities of IBBL and difference between Islami Bank and Conventional Bank. After go through the report it will be clear to all about the operational activities of Islami Bank Bangladesh Limited and the core differences between Islami Bank & Conventional Bank. For completing this report data are collected through the annual report of IBBL, practical knowledge, articles, discussion with manager & employees .This report also includes the historical background of IBBL, mission, vision, operational area of IBBL, products of IBBL, superiority of Islami Banking, basic requirement for engaging with IBBL and potentiality of Islami banking.

Islami Bank Bangladesh Limited is an Islami Bank which conducting its activities on the basis of “Islamic Shariah”. And never cross the boarders of Islamic Shariah. It is following the alternative theory of Islamic banking which illustrate incomparable human behavior to credit. It is strongly prohibited to conduct banking activities on the basis of interest / RIBA. Basically it is a banking system that wants to generate a profit oriented banking system. For this purpose IBBL has implemented a number of profits generating project for the huge number of rural & urban people.

Basically Islami Bank Bangladesh Limited collects deposit through offering its attractive & classical products. Like as- Al-Wadeeah mode (Current A/C) & Mudaraba Saving mode. Generally Al-Wadeeah Current A/C holder does not get any kind of profit from the branch as it is only for the safety purpose. IBBL offers a potential rate of profit (not fixed) to its Mudaraba Savings holder & at the measured date it (rate) may be higher or loser. There have lots of difference between Islami bank and conventional bank like as - difference in generating loan, interest/RIBA, zakat, shariah, reserve fund at central bank & investment mode. Though there have differences but some of the conventional banks are want convert to fully Islamic Banking/ introduce Islami Banking department.