Islami Bank Bangladesh Limited is a Joint Venture Public Limited Company engaged in commercial banking business based on Islamic

Shari'ah with 63.09% foreign sh areholding having largest branch network (250 Branches & 30 SME/Krishi Branches i.e. total 280 Branches) among the private sector Banks in Bangladesh. It was es tablished on the 13th March 1983 as the first Islamic Bank in the South East Asi a. It is listed with Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. A uthorized Capital of the Bank is Tk. 20,000.00 Million ($257.23 Million) and Pai d-up Capital is Tk. 14,636.28 Million ($188.25 Million) having shareholders as o n 30th June 2013. Mission: To establish Islamic Banking through the introduction of a welfare oriented bank ing system and also ensure equity and justice in the field of all economic activ ities, achieve balanced growth and equitable development in through diversified investment operations particularly in the priority sectors and less developed ar eas of the country. Vision: Our vision is to always strive to achieve superior financial performance, be con sidered a leading Islamic Bank by reputation and performance. Recognition of Performance:: As recognition of good performance IBBL won the following awards: IBBL has been selected as the only Bank from Bangladesh in top 1000 bank s in the world by a UK based century old financial magazine, 'The Banker' publis hed the list in its July 2012 issue. The institute of Chartered Accountants of Bangladesh (ICAB) awarded IBBL the first prize of SARRC Anniversary Award for Corporate Governance. South Asian Federation of Accountants (SAFA) awarded IBBL as joint Winne r in the Corporate Governance Disclosure Award-2010. South Asian Federation of Accountants (SAFA) also awarded IBBL with Cert ificate of Merit in Banking Sector in the Annual Report for the year 2010. Branch by Zone :: 15 Barisal Zone Bogra Zone Chittagong North Zone Chittagong South Zone Comilla Zone Corporate Branches Dhaka Central Zone Dhaka North Zone Dhaka So uth Zone Khulna Zone Mymensingh Zone Noakhali Zone Rajshahi Zone Rangpur Zone Sylhet Zone Mudaraba::: The term `Mudaraba' has been derived from one of the meanings of the Arabic word ` eans `Travel'. Thus the word `Mudaraba' means `Travel' for undertaking business. Mudaraba is a partnership in profit whereby one party provides capital and the o ther party provides skill and labour. The provider of capital is called "Shahib al-maal", while the provider of skill and labour is called "Mudarib". So, Mudaraba may be defined as a contract of partnership where the Shahib al-maa l provides capital to the Mudarib for investing it in a commercial enterprise by ' which

applying his labour and endeavor. Both the parties share the profit as per agre ed upon ratio and the losses, if any, being borne by the provider of funds i.e. Shahib al-maal except if it is due to breach of trust i.e. misconduct, negligenc e or violation of the conditions agreed upon by the Mudarib. If there is any los s incurred due to the reasons mentioned above, the Mudarib becomes liable for th at Musharaka::: The word Musharaka has been derived from the Arabic word `Shirkat' or 'Sharikat' (Sh irk). In Arabic, Shirkat or Sharikat or Shirk means partnership or sharing. Thus the literal meaning of 'Musharaka' is sharing though the connotation of this te rm is limited than the term Shirkat. The term Musharaka has been introduced rece ntly in Islamic Banking literature to mean a particular type of Shirkat. In Islamic Fiqh literature, Shirkat, in its primitive sense, signifies the conju nction of two or more estates, in such a manner, that one of them is not disting uishable from the other. The term Shirkat, however, is extended to contracts, al though there be no actual conjunction of estates, because a contract is the caus e of such conjunction. In the language of the law it signifies the union of two or more persons in one concern. It is the partnership between two or more person s or institutions. Musharaka may be defined as a contract of partnership between two or more indivi duals or bodies in which all the partners contribute capital, participate in the management, share the profit in proportion to their capital or as per pre-agree d ratio and bear the loss, if any, in proportion to their capital/equity ratio. In Islami Bank Bangladesh Limited (IBBL), the Bank may take part in a business w ith its Client(s), where both the Client(s) and the Bank provide capital in fixe d proportions, take part in the management of business and share the profit in p roportion to their respective capital ratio or at pre-agreed ratio and bear the loss, if any, in proportion to their respective capital/equity ratio

Bai-Salam:: The term `Bai-Salam' has been derived from Arabic words ` ' and ` ' (Bai'un and Salamun `purchase and sale' and the word ` ' means `advance'. `Bai-Salam' means advance purchase Bai-Salam may be defined as a contract between a Buyer and a Seller under which the Seller sells in advance the certain commodity (ies)/product(s) permissible u nder Islamic Shari`ah and the law of the land to the Buyer at an agreed price paya ble on execution of the said contract and the commodity (ies)/product(s) is/are delivered as per specification, size, quality, quantity at a future time in a pa rticular place. In other words, Bai-Salam is a sale whereby the seller undertakes to supply some specific Commodity (ies) /Product(s) to the buyer at a future time in exchange of an advanced price fully paid on the spot. Here the price is paid in cash, but the delivery of the goods is deferred

Bai-muajjal:: The term `Bai-Muajjal' has been derived from Arabic words and (Bai'un and Ajalun). T rd means purchase and sale and the word means a fixed time or a fixed period. " Bai-Muajjal " means sale for which payment is made at a future fixed date or wi thin a fixed period. In short, it is a sale on Credit Bai-Muajjal may be defined as a contract between a Buyer and a Seller under whic h the Seller sells certain specific goods permissible under Islamic Shari`ah and L aw of the land) to the Buyer at an agreed fixed price payable at a fixed future date in lump sum or within a fixed period by fixed instalments. The seller may

also sell the goods purchased by him as per order and specification of the Buye r. In this Bank, Bai-Muajjal is treated as a contract between the Bank and the Clie nt under which the Bank sells the goods, purchased as per order and specificatio n of the Client, to the client at an agreed price payable at any fixed future da te in lump sum or within a fixed period by fixed instalments. Thus it is a Credit sale of goods by which ownership of the goods is transferred by the Bank to the Client but the payment of sale price by the Client is deferr ed for a fixed period. It may be noted here that in case of Bai-Muajjal, the Islamic Bank is a financie r to the Client not in the sense that the Bank finances the purchase of goods by the Client, rather it is a financier by deferring the receipt of the sale pric e of goods, it sells to the Client. If the Bank does not purchase the goods or d oes not make any purchase agreement with seller, but only makes payment of any g oods directly purchased and received by the Client from the seller under Bai-Mua jjal Agreement, that will be a remittance/payment of the amount on behalf of the Client, which shall be nothing but a loan to the Client and any excess on this amount shall be nothing but Interest (Riba). Therefore, purchase of goods by the Bank should be for and on behalf of the Bank and the payment of price of goods by the Bank must be made for and on behalf of the Bank. If in any way the payment of price of goods is turned into a payment for and on behalf of the Client or it is paid to the Client, any excess on it wi ll be Riba

Bai Murabaha:: The term `Bai-Murabaha' has been derived from Arabic words and (Bai'un and Ribhun). T rd means purchase and sale and the word means an agreed upon profit. `Bai n agreed upon profit. Bai-Murabaha may be defined as a contract between a buyer and a seller under whi ch the seller sells certain specific goods (permissible under Islamic Shariah an d the Law of the land), to the buyer at a cost plus agreed profit payable in cas h or on any fixed future date in lump-sum or by installments. The profit markedup may be fixed in lump-sum or in percentage of the cost price of the goods.