Investment Activities of Social Islami Bank PLC

Abstract

Social Islami Bank Limited is one of the Shariah-based Islamic banks offering Islamic services in Bangladesh. This report focuses on analysing various investment activities that the bank has in its portfolio. This report intends to analyse the investment activities of Social Investment Islami Bank PLC over the years 2018-2022. The analysis highlights the bank's key investment patterns across financial assets, investment modes, industry loans, and division-wise allocations. The results indicate that a significant portion of the bank’s investment in financial assets is distributed to government bonds, averaging 65 percent of total investments. On a mode-wise investment, the bank primarily invests through the Mudaraba scheme, which constitutes an average of 68 percent of total investments, followed by Hire Purchase, constituting for 22 percent. Industry-wise investment, the bank focuses on commercial lending and SMEs funding, with these sectors receiving 35 percent and 40 percent of total industry loans, respectively. Geographic-wise investment, investment of SIBL is concentrated in Dhaka and Chittagong divisions, representing on an average 73 percent and 20 percent of total investments, respectively.