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    Islamic banking rapidly rising in Bangladesh

    March 15, 2021By Priya Saha
    Islamic banking rapidly rising in Bangladesh

    Total deposit: Tk 319624 cr
    Total investment: Tk 284010 cr
    Excess liquidity: Tk 18254 cr
    Total number of branches: 1464
    Total number of manpower: 38125

    Sahin Molla: Bangladesh has started its Islamic banking journey through the formation of the Islamic Bank Bangladesh Limited in 1983. Currently, according to Bangladesh Bank report of September 2020, Bangladesh has 8 (eight) fully fledged Islamic banks, 19 Islamic banking branches of 9 conventional commercial banks and 166 Islamic banking windows of 12 conventional commercial banks are also providing Islamic financial service in Bangladesh.
    Bangladesh Islamic banking sector plays significant role in mobilizing deposits and financing various economic activities. Among different segments of Bangladesh’s Islamic finance industry, Islamic banking industry dominates with almost 25 percent share of the entire banking sector.
    Islamic Banking is growing rapidly in Bangladesh and contributing significant role of banking and economic sector. According to Bangladesh Bank sources end of the September 2020, Islamic Banking deposit increased 9.72 percent compared to the June 2020 and 21.94 compared to the same month of the last year. Islamic Banking Investment has increased end of the September 3.10 percent compared to the June and 10.04 percent compared to the end of same month of preceding year.
    Islamic Banking Liquidity has increased 95.51 percent compared to the June and 195.75 percent end of the same month of the last year.
    Islamic Banking Sector is significant role in remittance, end of September 73.92 percent higher than June and 51.36 percent higher than same period of last year.
    In September 2020, Islamic Banking operate 1464 Branches which was end of the June 1448 branches and 1301 at end September of last year.
    The total number of employment 38125 end of September in 2020 which was 36582 end of June and 36337 was end of the September 2019.
    As well as Islamic Banks undertake and implement various types of social programs under Corporate Social Responsibility (CSR) activities. These funds are spent among different types of education, training, health, and charity-based organizations in Bangladesh. Expenditure on CSR activities during July-September 2020 quarter had been recorded at Tk 954.50 million.
    According to a statement of BIBM, Bangladesh ranked 10th in the world in terms of Islamic banking. Sudan came first and Iran second, while Saudi Arabia stood fourth and Pakistan 13th.
    Md. Serajul Islam, Executive Director of Bangladesh Bank said, Islamic Banking sector achieved a place of trust of people by their service. They are doing well all over the part in banking as well as deposit, investment, liquidity with others. Besides Islamic Banking is a part of confidential and religion fact. Even then I would say the reason of raising their position is better service than other banking. Most of the bank tries to hunting deposit through door to door but Islamic Banking sector gets their deposit in office through of people to people.

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    Priya Saha
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    Executive Director at Human Rights Congress for Bangladesh Minorities | Priya Saha is the Executive Director of Human Rights Congress for Bangladesh Minorities (HRCBM). HRCBM is an NGO in Special Consultative Status with the Economic and Social Council of the United Nations.

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