4.

1 Findings of the Report

While preparing this report, I have got the chance to know about the process of
financial performance analysis of Islami Bank Bangladesh Ltd. I got to know various
steps regarding the company’s financial record keeping and computation process,
methods of analysis, various performance ratios etc. Major findings of the report are
as the followings:

1. We can see that EPS is is increasing from 2020-2022 which is a good sign.

2. Return on Equity for past 5 years are in declining trend from year 2018 to year
2022. Which is a bad sign for IBBL.

3. ROA were .64%, .50%, .35%, .30% and .36% respectively during the year 2018-
2022.

4. ROA is a bad position which is not acceptable.

5. Here, we see that current ratio of IBBL is 1.08:1 in 2018, 1.082:1 in 2019, 1.083:1
in 2020, 1.05:1 in 2021 and 1.09:1 in 2022. Which is bad for IBBL.

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4.2 Recommendations

Though Islami Bank Bangladesh Ltd. (IBBL) is performing well but it has some
crucial areas to improve which are prescribed below:

1. It is a modern banking era. Each and every commercial bank is properly utilizing
technological innovations. So, IBBL needs to utilize more modern technologies to
keep pace with the changing time.

2. The bank can consider employing more female employees in the branch, especially
in the investment sector to attract more female customers.

3. The bank need to open more ATM booths in different places as it has a huge
number of customers.

4. Most of the people of our country have a bad impression about IBBL‟s operation
regarding indirect generation of interest, which means no difference between
conventional banking & IBBL, because people have no proper knowledge about
activities of IBBL as well as its mechanism. It should improve through various
seminar and Islamic discussion.

5. The bank should diversify their investment into different modes such as Bai-
Salam, Bai- Muajjal, SME, instead of concentrating on Bai- Murabaha and HPSM
investment mode.

6. To fulfill the vision of mass banking IBBL should grants investment portfolio to
new entrepreneurs.

7. IBBL have to promote its distributional efficiency from all dimensions together
with profitability.

8. The bank should reduce its classified investment more by maintaining investment
carefully in safe sector & choosing most credit worthy borrower.

9. The authority of IBBL should introduce exert pressure on Government bodies to

10. IBBL should make its investment schemes more attractive for availing high-return
projects.

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11. IBBL should consider utilization of rural potentials from both efficiency and
equity grounds in the context of the present-day socio-economic conditions of
Bangladesh. Strong commitments and stepping up through experiment and
implementation of innovative ideas are the appropriate ways to do that.

12. IBBL bank should give more emphasis on their marketing effort & take
promotional activities to get a broad geographic coverage.

13. The authority of IBBL should introduce more innovation & modern customer
service through appointment of a customer relationship officer at branch level.

14. IBBL should appoint a sufficient number of women employees to deal women
entrepreneurs and professional to understand their need and thus create demand for
investment.

15. Legal frame work and government rules regarding Islamic Banking should more
flexible.

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4.3 Conclusion

Islam is a complete code of life where the detailed regulation for maintaining a proper
economic life is given. Therefore Islami Bank Bangladesh Ltd. (IBBL) is trying to
establish the maximum welfare of the society by maintaining the principles of Islamic
Shariah which is based on Quran and Sunnah. Both Islam and Bangladesh bank
discouraged luxurious lifestyle. Therefore, in terms of consumer investment IBBL
also discourages luxurious lifestyle, and always tries to give investment only to those
consumers who really need it. As a result, at a time it reduces the extensive usage of
luxurious products and also upgrades the lifestyle of society by serving the deserved
people. Islami Bank Bangladesh Ltd. is the pioneer of the welfare activities in
Bangladesh. It is emphasize equally in developing the rural areas of the country. The
special feature of the Investment Policy of the Bank is to invest on the basis of profit-
loss sharing system in accordance with the tenets and principles of Islamic Shariah.
Earning of profit is not the only motive and objective of the Bank's Investment Policy
rather emphasis is given in attaining social goal and objective in creating employment
opportunities. Having been considered the pro-efficiency character of Islamic banking
and its beneficial impacts on the economy, government policy in Muslim countries
should be in favor of transforming conventional banking system into Islamic banking.

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