Investment Performance of Islami Bank Bangladesh Ltd.

Abstract

The internship report on Investment Performance in Bank: A Look from Islami Bank Ltd. as required by the Supervisor Mohammad Amzad Hossain, Assistant Professor-AIS, School of Business & Economics, United International University. The purpose of the study are to evaluate and analyze the Performance of Investment about Islami Bank Bangladesh Limited, to know out the performance of investment process and recovery system, to analyze different modes-wise investment, to analyze sector-wise and division-wise investment, to evaluate the investment performance of IBBL within the banking industry. Both Primary and secondary data are used to prepare this report.

The report is divided into five chapters. The first chapter of this study is deals with introduction of investment management performance, analysis of those performances of IBBL, an overview of IBBL. The second chapter deals with Organizational Background & Industry Perspective of IBBL. The third chapter deals with the objectives of this report. The fourth chapter deals with methodology of the study to conduct the report with a principle. In the last chapter it deals with the findings of the study, about to the conclusions and recommendations of this report.

The main finding of the report is as follows: The deposit has increase from Tk 473140 in 2013 to Tk 755022 in 2017 million. However, the growth rate of deposit has fluctuated over the year. The investment has increased over the years from Tk 406817 million in 2013 to Tk 710728 in 2017. However the growth rate of investment has fluctuated over the years. Maximum amount of investment of IBBL was in SME in 2017 which is 42% of total investment in 2017. IBBL invest major portion of investment in Bai Murabaha that is 55.17% in 2013 to 58.84% in 2017. The classified investment has increased from Tk 14941.90 million in 2013 to Tk 25518.61 million in 2017 and it also shows the investment performance among the two others Shari’ah Based Islami Banks.

Some recommendations of the report are: IBBL has an increasing trend of deposits. They need to maintain and improve this trend by extending Branches, introducing newer schemes, and providing more improved customer service. They should establish separate Recovery Unit, and division wise recovery monitoring team to reduce the classified investment. The customers should be analyzed by collection information from credit information bureau or past behavior.