| dc.description.abstract | This report provides a clear idea of the financial performance analysis and agent banking of
ISLAMI BANK BANGLADESH LIMITED.
Islami Bank Bangladesh Limited was established in March 1983 based on "Islamic Shariah"
with a clear program of representing the operational meaning of participatory economy,
banking, and other financial activities as an internal part of an Islamic code of life. The
philosophy of Islami Bank is to establish a democratic society based on the principles of social
justice and equity. As an internal part of this process, Islami Bank introduced measures to
abolish interest and charge or pay fixed interest on loans or deposits. Instead of predetermined
interest on deposits, the depositors participate in the profit of the bank as an agreed ratio.
whereas interest-based conventional banks pay a certain fixed interest on savings and time
deposits and grant loans with interest for any purpose.
ISLAMI BANK BANGLADESH LIMITED's performance analysis was better than its
previous years, such as the fact that its current ratio was 13.12, which shows it was higher in
2021 than its previous years, which means IBBL was more assured of having enough funds to
pay its current liabilities than before. On the other hand, the debt ratio decreased to 0.59 in
2021, which indicated that IBBL's liabilities decreased compared to its assets in 2021. We
know that the higher the equity ratio of a bank, the more it is financed with stock rather than
debt. In 2021, IBBL did very well compared to its previous years. In 2021, IBBL has managed
to control its leverage ratio very effectively, which was 1.43, which was higher than its previous
year. During the COVID1 pandemic in 2020 and 2021, IBBL’s showed a better side in
profitability ratios such as ROA and ROE than in 2019. But in 2021, ROI decreased compared
to its previous years to 0.77, though we can say that the IBBL is trying its best to make it more
efficient for upcoming years. In the end, we can say that IBBL’s performance analysis in its
efficiency ratio was a little bit lower in 2021 than in its previous years, at 0.23, which shows
that its efficiency ratio is below 50%, which indicates that its ability to utilize its assets to
generate income was more efficient than before. ISLAMI BANK BANGLADESH LIMITED
achieved phenomenal success in the agent banking business. The bank is trying to expand its
agent banking business and keep up with other market competitors. | en_US |
