Chapter 2¶

About Export Import Bank of Bangladesh Ltd.¶

2.1 Background¶

Export Import Bank of Bangladesh Limited was established in the year 1999 under the leadership of Late Mr. Shahjahan Kabir, Founder Chairman who had a long dream of floating a commercial bank which would contribute to the socio-economic development of our country. He had a long experience as a good banker. A group of highly qualified and successful entrepreneurs joined their hands with the founder chairman to materialize his dream. Indeed, all of them proved themselves in their respective business as most successful star with their endeavor, intelligence, hard working and talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder who is an illuminated business tycon in the Garments business in Bangladesh became the Honorable Chairman after the demise of the honorable founder chairman. He is also the chairman of Bangladesh Association of Banks (BAB). Under his leadership, BAB has emerged as an effective forum for exchanging views on problems being faced by the banking sector of Bangladesh and for formulating common policy guidelines in addressing such problems.

The Bank starts functioning from 3rd August, 1999 with its name as Bengal Export Import Bank Limited. On 16th November 1999, it was renamed as Export Import Bank of Bangladesh Limited with Mr. Alamgir Kabir as the Founder Advisor and Mr. Mohammad Lakiotullah as the Founder Managing Director respectively. Both of them have long experience in the financial sector of our country. By their pragmatic decision and management directives in the operational activities, this bank has earned a secured and distinctive position in the banking industry in terms of performance, growth, and excellent management. Under the leadership of Mr. Lakiotullah, the Bank has migrated all of its conventional banking operation into Shariah Based Islami Banking in the year July 2004.

In the year 2006, Mr. Kazi Masihur Rahman became the Managing Director of the bank when Mr. Lakiotullah left the bank after completion of his successful 7 years as MD. Mr. Kazi served in the bank for next five years. Under his leadership, the bank has been placed on a state of the art centralized IT platform with two modern data centers where world renowned core banking software TEMENOS T24 is running along with some alternate delivery channels like ATM and SMS banking.

On 25th August, 2011, Mr. Md. Fariduddin Ahmed has joined in the bank as Managing Director. With his long banking experience, EXIM Bank become fully compliant Bank with adequate capital and good asset quality. After retirement from Managing Director, he has been continuing his service for EXIM Bank as Advisor since 27th July 2012.

Dr. Mohammed Haider Ali Miah succeeded Mr. Fariduddin Ahmed on July 25, 2012 and has created a new dimension in EXIM history becoming the first ever in-house Managing director and CEO of the Bank. Under his far-sighted leadership, EXIM Bank has not only achieved uppermost level of performance in almost each arena of its activities but also gained confidence to place itself as one of the dynamic banks through delivering transparent and standard banking services to the customers in a compliant manner. [1]

2.1.1 Vision and Mission¶

Our vision and mission are stated in the following:

To be the finest bank in the banking arena of Bangladesh under the Shariah Guidelines. To maintain Corporate and business ethics.
To become a trusted repository of customers’ money and their financial advisor.
To make our stock superior and rewarding to the customers/share holders.
To display team spirit and professionalism.
To have a Sound Capital Base.
To provide high quality financial services in export and import trade.
To provide excellent quality Customer service.

[Figure 2.1] Official logo of EXIM Bank of Bangladesh Limited

2.1.2 Corporate culture¶

This bank is one of the most disciplined Banks with a distinctive corporate culture. Here we believe in shared meaning, shared understanding and shared sense making. Our people can see and understand events, activities, objects and situation in a distinctive way. They adapt their manners and etiquette, character individually to suit the purpose of the Bank and the needs of the customers who are of paramount importance to us. The people in the Bank see themselves as a tight knit team/family that believes in working together for growth. The corporate culture we belong has not been imposed; it has rather been achieved through our corporate conduct. [2]

2.1.4 Achievement¶

It is a great pleasure that by the grace of Almighty Allah, we have migrated at a time all the branches from its conventional banking operation into Shariah based Islami banking Operation without any trouble. Lot of uncertainties and adversities were there into this migration process. The officers and executives of our bank motivated the valued customers by counseling and persuasion in light with the spirit of Islam especially for the non-Muslim customers. Our IT division has done the excellent job of converting and fitting the conventional business processes into the processes based on Shariah. [4] 10

2.1.5 Shariah Board¶

The Board of directors has formed a Sharia Supervisory Board for the Bank. Their duty is to monitor the entire Bank’s transactional procedures, & assuring its Sharia compliance. This Board consists of the following members headed by its Chairman. The tasks of the Sharia supervisor in summary is replying to queries of the Bank’s administration, staff members, shareholders, depositors, & customers, follow up with the Sharia auditors and provide them with guidance, submitting reports & remarks to the Fatwa & Sharia Supervision Board and the administration, participating in the Bank’s training programs, participating in the supervision over the AlIqtisad AlIslami magazine, & handling the duty of being the General Secretary of the Board. [5]

2.1.6 Shariah Auditing¶

This is the civil supervisory aspect that shapes the Bank’s main feature. Its existence is part of the Sharia Supervision procedures. One of its main tasks is to check the Sharia compliance in the Bank’s transactional procedures in accordance to the Fatwas issued in that regard under the guidance of Shariah Supervisor. The Sharia auditor is assigned the task of revising the Bank’s transactional procedures throughout the year to check the extent to which the staff members and the different departments have abided by the regulations, advices, and Fatwas issued by the Fatwa & Sharia Supervision Board, forums, & banking conferences. As well as, assuring that all the contracts that states a right for the Bank or an obligation on the Bank is certified by The Fatwa & Sharia Supervision Board. Moreover, the Sharia Auditing submits periodic reports to the Sharia Supervisor in order to be proposed to the Fatwa & Sharia Supervision Board to state what it finds appropriate in that regard.

2.2 Functional Organogram of EXIM Bank Limited Bangladesh(Head Office)¶

[Figure 2.2] Functional Chart of EXIM Bank of Bangladesh Limited

2.3 Banking with Shariah Principles¶

Export Import Bank of Bangladesh Limited is the 1st bank in Bangladesh who has converted all of its operations of conventional banking into shariah-based banking since July 2004. We offer banking services for Muslims and non-Muslims alike allowing our customers choice and flexibility in their savings and investments. Our products are approved by our Shariah Board comprising of veteran Muslim scholars of our country who are expert in all matters of Islamic finance.

The process by which Noriba’s investments are designed and executed allows the Bank to offer a combination of Sharia compliance and capital markets expertise. Noriba is committed to the strict adherence to the requirements of the Sharia as a result of the Bank’s sole focus on Sharia-compliant investments and the full supervision of its financial products and transactions by the Noriba Sharia Board. Noriba experts specifically design each of the Bank’s investment vehicles with the approval of the Noriba Sharia Board. Once the given product or transaction has been arranged, the Noriba Sharia Board carefully screens it for compliance before giving final approval for its implementation. This control mechanism guarantees that all aspects of Noriba’s final products and banking transactions are in adherence with the guidelines of the Sharia.

2.4 Banking Operation¶

2.4.1 Bank Operational Area¶

Export and Import Trade Handling and Financing

As a commercial Bank, we do all traditional Banking business including the wide range of savings and credit scheme products, retail banking and ancillary services with the support of modern technology and professional Excellency. But our main focus is, for obvious reason, on export and import trade handling and the development of entrepreneurship and patronization of private sectors.[6]

2.4.2 Product and Services¶

Super Savings Scheme Monthly Savings

Scheme Monthly Income Scheme

Multi plus Savings Hajj Deposit

2.4.3 Investment / Finance¶

Corporate Finance

Industrial Finance

Project Finance

2.4.4 Syndicate Investment Mode of Investment¶

Murabaha Quard

Bai Muazzal Local Documentary Bill Purchased

Izara Bil Baia Foreign Documentary Bill Purchased

Wazirat Bil Wakala

2.4.5 Deposit¶

Al-Wadia Current Deposit

Mudaraba Savings Deposit

Mudaraba Short Term Deposit

2.4.6 Mudaraba Term Deposit¶

One Month Twelve Months

Three Months Twenty Four Months

Six Months Thirty Six Months

2.4.7 Mudaraba Savings Scheme¶

Monthly Savings Scheme (Money Grower)

More than triple the Deposit in 10 years (Multi plus Savings)

Monthly Income Scheme (Steady Money) Mudaraba Hajj Deposit

More than double the deposit in 6 years (Super Savings)

We emphasize on non-fund business and fee based income. Bid bond/ bid security can be issued at customer’s request. Our Bank is posed to extend L/C facilities to its importers / exporters through establishment of correspondent relations with leading banks all over the world. Moreover, Consumers can deposit their Telephone bill of GrameenPhone in all the branches except Motijheel and the consumers of Palli Buddut somity of Gazipur can deposit their electricity bill to Gazipur branch.

2.4.8 E cash/ ATM Service¶

The bank is currently providing Credit Card Service (MasterCard) to the privileged customers of the bank in collaboration of Prime Bank. Floating VISA card for both Debit and Credit card service is under process.

2.5 Society for Worldwide Interbank Financial Telecommunication (SWIFT)¶

BANK IDENTIFICATION CODE (BIC): EXBKBDDH

MOTIJHEEL BRANCH EXBKBDDH001

PANTHAPATH BRANCH EXBKBDDH002

PANTHAPATH BRANCH EXBKBDDH002

AGRABAD BRANCH EXBKBDDH003

KHATUNGANJ BRANCH EXBKBDDH004

IMAMGANJ BRANCH EXBKBDDH006

GULSHAN BRANCH EXBKBDDH007

NAWABPUR BRANCH EXBKBDDH010

NARAYANGONG BRANCH EXBKBDDH011

RAJUK AVENUE BRANCH EXBKBDDH013

UTTARA BRANCH EXBKBDDH015

JUIBLEE ROAD BRANCH EXBKBDDH018

MIRPUR BRANCH EXBKBDDH017

KARWAN BAZAR BRANCH EXBKBDDH035

BOGRA BRANCH EXBKBDDH021 [7]