Economic Reporter :
The Islamic banking industry is performing well in the country’s financial sectors, accounting for more than one-fifth share of the entire banking sector in terms of deposits and investments.
“Islamic banking is running by following the rules of Islam under a Shariah council of the respective banks. Religious Muslims prefer to deposit in this banking system. So, it is doing well,” Bangladesh Bank (BB) Deputy Governor Abu Hena Mohd Razee Hassan told.
BB is also monitoring all activities of the Islamic banking so that the banks can provide Islamic banking services properly, he said.
According to BB’s latest data, deposits, investments and remittance of Islamic banking industry grew by 4.82 percent, 4.60 percent and 33.13 percent respectively at the end of April to June quarter compared to the previous quarter (January-March).
The share of total deposits of Islamic banks accounted for 22.72 percent among all banks during the April-June period and the share of total investment accounted for 23.98 percent among all banks.
During April to June period, total deposits in the banking industry reached Taka 1,99,424.90 crore, which increased by Taka 9,167.21 crore compared to previous quarter and by Taka 23,889.48 crore or by 13.61 percent compared to the corresponding quarter of the last year.
During the period, total investments (loans in conventional sense) in Islamic banking sector stood at Taka 185244.93 crore in the quarter, which went up by Taka 8151.27 crore compared to the previous quarter and by Taka 28625.03 crore or by 18.28 percent compared to the same quarter of the preceding year.
Investment-Deposit Ratio (credit-deposit ratio) reached 0.93 in April-June quarter which was 0.93 percent in the previous quarter of this year and 0.89 at the end of June 2016.
Total remittances mobilized by the Islamic banking sector stood at Taka 8,866.82 crore at the end of April-June quarter, which was higher by Taka 2,206.66 crore compared to the previous quarter.
The number of branches of Islamic banking sector including Islamic branches or windows of conventional commercial banks stood at 1,112 at the end of the April-June quarter, which was 1092 during the previous quarter and 1042 during the same quarter of the last year.
Talking to media, Islami Bank Bangladesh Limited (IBBL) Deputy Managing Director Abu Reza Mohd Yeahia said Islamic banking is following the rules of Islamic Shariah and the industry has earned the trust of people.
Referring to the performance of IBBL, he said, the bank had active and experienced manpower and board of directors and, therefore, the bank is playing a vital role in the country’s banking sector.
According to the BB, the total deposits and investments of the eight full-fledged Islamic banks accounted for 95.16 percent or Taka 1,89,767.37 crore and 95.31 percent or Taka
1,76,55,694.28 crore of the deposits and investments of the Islamic banking industry.
The Islamic banking industry is performing well in the country’s financial sectors, accounting for more than one-fifth share of the entire banking sector in terms of deposits and investments.
“Islamic banking is running by following the rules of Islam under a Shariah council of the respective banks. Religious Muslims prefer to deposit in this banking system. So, it is doing well,” Bangladesh Bank (BB) Deputy Governor Abu Hena Mohd Razee Hassan told.
BB is also monitoring all activities of the Islamic banking so that the banks can provide Islamic banking services properly, he said.
According to BB’s latest data, deposits, investments and remittance of Islamic banking industry grew by 4.82 percent, 4.60 percent and 33.13 percent respectively at the end of April to June quarter compared to the previous quarter (January-March).
The share of total deposits of Islamic banks accounted for 22.72 percent among all banks during the April-June period and the share of total investment accounted for 23.98 percent among all banks.
During April to June period, total deposits in the banking industry reached Taka 1,99,424.90 crore, which increased by Taka 9,167.21 crore compared to previous quarter and by Taka 23,889.48 crore or by 13.61 percent compared to the corresponding quarter of the last year.
During the period, total investments (loans in conventional sense) in Islamic banking sector stood at Taka 185244.93 crore in the quarter, which went up by Taka 8151.27 crore compared to the previous quarter and by Taka 28625.03 crore or by 18.28 percent compared to the same quarter of the preceding year.
Investment-Deposit Ratio (credit-deposit ratio) reached 0.93 in April-June quarter which was 0.93 percent in the previous quarter of this year and 0.89 at the end of June 2016.
Total remittances mobilized by the Islamic banking sector stood at Taka 8,866.82 crore at the end of April-June quarter, which was higher by Taka 2,206.66 crore compared to the previous quarter.
The number of branches of Islamic banking sector including Islamic branches or windows of conventional commercial banks stood at 1,112 at the end of the April-June quarter, which was 1092 during the previous quarter and 1042 during the same quarter of the last year.
Talking to media, Islami Bank Bangladesh Limited (IBBL) Deputy Managing Director Abu Reza Mohd Yeahia said Islamic banking is following the rules of Islamic Shariah and the industry has earned the trust of people.
Referring to the performance of IBBL, he said, the bank had active and experienced manpower and board of directors and, therefore, the bank is playing a vital role in the country’s banking sector.
According to the BB, the total deposits and investments of the eight full-fledged Islamic banks accounted for 95.16 percent or Taka 1,89,767.37 crore and 95.31 percent or Taka
1,76,55,694.28 crore of the deposits and investments of the Islamic banking industry.
