Islami Bank Bangladesh

What Islami Bank Bangladesh does

Islami Bank Bangladesh PLC is the largest commercial bank in Bangladesh and the first Shariah-based scheduled commercial bank in the South and South-East Asia region, established in March 1983. It operates as a publicly listed joint venture company on the Dhaka and Chattogram stock exchanges, with a government-contributed Tk 200 billion of the Tk 400 billion authorized capital following the 2024 merger of five Islamic banks. The bank serves retail customers, SMEs, corporates, agricultural borrowers, women entrepreneurs, non-resident Bangladeshis, and government employees through a comprehensive suite of Shariah-compliant deposit, investment, and remittance products — including Al-Wadeeah Current Accounts, Mudaraba Savings/Term Deposits, Bai-muajjal, Mudaraba, and Musharaka investment modes, plus specialized schemes for Hajj, education, housing, healthcare, and overseas employment.

The bank's technology and distribution platform rests on a Shariah-compliant core banking system delivered through four physical and digital channels: 400 branches plus 271 sub-branches for full-service delivery, 2,793 agent banking outlets for rural/unbanked outreach (since 2017), and three digital channels — mCash (mobile financial services, launched Dec 2012), iBanking (internet banking, since 2006), and the CellFin omni-channel app (with IBBL iSmart and a Help Portal). International remittances are delivered through a correspondent network spanning 40+ countries, producing $6.88 billion of inward remittances in FY26. Wholly-owned subsidiaries include Islami Bank Securities (brokerage), Islami Bank Capital Management, mCash Ltd (now with up to 48.99% B100 Holdings stake pending approval), and the Islami Bank Foundation.

Revenue is generated through investment/financing income from Shariah-compliant instruments, profit-sharing on Mudaraba deposits, transaction fees (mCash cash-out of 0.70–1.39%, utility bill payments on tiered Tk 5–25, RTGS at Tk 100+VAT), foreign exchange services, and capital-market fees from subsidiaries. The GTM motion is relationship-led, branch-anchored, and increasingly digital via mCash and CellFin self-service, with a dedicated trainee officer cohort (1,000 newly hired from 91,756 applicants across all 64 districts) supporting front-line coverage. As of mid-2026 the bank is operating under direct Bangladesh Bank control following board dissolution, with Tk 13,000 crore in central bank liquidity support amid an NPL ratio of 47%, a Tk 85,888 crore provision shortfall, and significant exposure to defaulted S. Alam Group loans.

Name

Islami Bank Bangladesh

Legal name

Islami Bank Bangladesh PLC

Website

https://islamibankbd.com

Company type

Public

Founded year

1983

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Islami Bank Bangladesh PLC is Bangladesh's largest commercial bank and the first Shariah-based scheduled bank in South/South-East Asia, serving retail, SME, corporate, agricultural, and NRB customers through 400 branches, 2,793 agent outlets, and mCash, iBanking, and CellFin digital channels.

Ownership category

akta.pro rank

Product category

Islamic Retail Banking

NAICS

Depository Credit Intermediation (5221), Commercial Banking (522110)

SIC

State Commercial Banks (6022)

akta.pro primary industry

Islamic SME & Commercial Banking (FSABAGAB)

akta.pro secondary industries

Islamic Retail Banking (FSABAGAA), Islamic Corporate Banking (FSABAGAC), Islamic Deposit & Account Products (Current/Savings/Investment Accounts) (FSABAGAI), Islamic Investment Banking & Capital Markets Services (FSABAGAG), Islamic Transaction Banking (Cash Management & Treasury Services) (FSABAGAF)

Keywords

• Islamic retail banking
• Shariah-compliant deposit accounts
• SME investment financing
• Islamic microfinance services
• Mobile financial services

Headquarters

HQ city

Dhaka

HQ country

Bangladesh

HQ region

Asia

Offices3 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Others, Technology or R&D, Marketing or Sales

Revenue model

1. Investment/Financing Income: Income from Shariah-compliant financing modes including Bai-muajjal, Bai-Salam, Bai-Istisna'a, Mudaraba, Musharaka, and Hire Purchase under Shirkatul Meelk. The bank generates profit through these Islamic financing instruments on loans and investments to retail, SME, and corporate customers.
2. Deposit-based Profit Sharing: Returns on various Mudaraba deposit accounts including savings, term deposits, monthly profit deposits, and special savings schemes. The bank distributes profits to depositors based on Mudaraba profit-sharing mechanism.
3. Service Charges and Fees: Fees from various banking services including account maintenance, transaction processing, utility bill payments, card services, letter of credit processing, and foreign exchange services. Mobile financial service charges include cash-out fees (0.70-1.39%), fund transfer fees, and merchant payment fees.
4. Foreign Exchange Services: Revenue from foreign exchange transactions, international banking services, and foreign currency accounts including Mudaraba Foreign Currency Deposit Account (MFCD) and Mudaraba International Banking Account (MIBA).
5. Subsidiary Operations: Revenue from subsidiaries including Islami Bank Securities Limited (stock brokerage and dealer) and Islami Bank Capital Management Limited (capital market operations). Strategic investment in mCash Ltd mobile financial services subsidiary.

Pricing tiers

Go-to-market motion3 records

Distribution channels9 records

Marketing channels6 records

Core offering

Islami Bank Bangladesh PLC operates as a Shariah-compliant commercial bank delivering deposit accounts, investment and financing products, trade services, credit cards, agent banking, mobile and internet banking, offshore banking, and Islamic microfinance to retail, SME, corporate, agricultural, NRB, women entrepreneur, and government employee segments across Bangladesh. Revenue is earned through profit-sharing returns on Shariah-compliant investment modes, deposit-based Mudaraba profit distribution, transactional service fees, foreign exchange, and subsidiary capital-market and MFS income. The bank runs the largest private-sector distribution network in the country with 400 branches, 271 sub-branches, and 2,793 agent outlets, supported by the mCash, CellFin, and iBanking digital platforms.

Product overview

Islami Bank Bangladesh PLC (IBBPLC) operates as a platform-based Islamic commercial bank offering a comprehensive suite of Shariah-compliant banking products and services. The core banking platform encompasses traditional deposit accounts (Al-Wadeeah, Mudaraba Savings, Mudaraba Term Deposits) and investment modes (Bai-muajjal, Mudaraba, Musharaka). Digital banking services are delivered through multiple channels including mCash (mobile financial service), iBanking (internet banking), and CellFin (omni-channel mobile app). Branchless banking is enabled through Agent Banking with over 2,700 outlets, supplemented by Offshore Banking services. The bank also offers retail investment schemes (Housing, Education, Health Care, Swapnojatra), credit cards (Khidmah Card), and SME/Microfinance lending. Two subsidiaries handle securities and capital management. The Help Portal provides customer self-service capabilities.

Differentiator

Problem solved

Functional benefit

Brands

• mCash: Mobile financial service (MFS) platform of Islami Bank Bangladesh PLC launched in December 2012, offering deposit/withdrawal, fund transfer, remittance receipt, balance inquiry, salary payment, utility bill payment, merchant QR payments, and mobile recharge via mobile phone.
• CellFin
• iBanking
• Islami Bank Khidmah Card

Products and services

• Al-Wadeeah Personal Retail Account Shariah-compliant personal retail deposit account for individual customers, providing everyday banking under Islamic principles.
• Mudaraba Savings Account (MSA) Profit-and-loss sharing savings account for individual customers to save and earn profits under Mudaraba principles.
• Mudaraba Term Deposit Account (MTDR) Fixed term deposit account offering profit-based returns for customers seeking stable Shariah-compliant returns.
• Bai-muajjal Investment Mode Islamic investment mode based on deferred payment sale where the bank sells goods at an agreed markup price payable at a future date.
• Mudaraba Investment Mode Profit-sharing investment where one party provides capital and the other provides expertise and management, with profits shared per agreement.
• Musharaka Investment Mode Equity participation partnership where profits are shared as agreed and losses are shared in proportion to capital contribution.
• SME Investment Shariah-compliant investment facilities for Small and Medium Enterprises supporting business growth and operations.
• Islamic Microfinance Islamic microfinance services providing small-scale Shariah-compliant financial assistance to underserved populations including farmers, women entrepreneurs, and micro-industries.
• Housing Investment Program (HIP) Shariah-compliant investment scheme for customers to finance housing construction or purchase.
• Education Investment Scheme Shariah-compliant investment scheme to finance educational expenses and institution fees.
• Health Care Investment Scheme Shariah-compliant investment scheme for customers to finance healthcare and medical expenses.
• Swapnojatra (Overseas Employment Investment Scheme) Savings and investment scheme for overseas employment preparation and related expenses, targeting Non-Resident Bangladeshis.
• Islami Bank Khidmah Credit Card Shariah-compliant credit card on the Ujrah fixed-fee concept, available in Silver (up to Tk 50,000), Gold (up to Tk 100,000), and Platinum (up to Tk 200,000) tiers with global acceptance.
• mCash Mobile Financial Service Mobile financial service platform offering deposit/withdrawal of cash, fund transfers, foreign remittance reception, balance and statement checking, salary payments, mobile recharge, and utility bill payments through mobile phone.
• iBanking (IBBL iBanking / IBBL iSmart) Comprehensive internet and mobile banking platform enabling account management, fund transfers (iTransfer, EFT, RTGS, NPSB), utility bill payments, card services, cheque management, foreign trade services, VISA Money Transfer, ticket purchase, bulk recharge, and SMS alert management.
• CellFin Omni-channel Banking App Omni-channel smartphone banking app offering instant virtual dual-currency VISA/Mastercard/UPI cards, fund transfers, foreign remittance reception via PIN or VISA Direct, ticket purchasing (bus, launch, air, DITF), utility bill payments, and self-opening of IBBPLC accounts.
• Agent Banking Branchless banking services delivered through appointed agents operating from their own premises, providing account opening, cash deposit/withdrawal, fund transfer, POS withdrawal, utility bill payments, remittance disbursement, and investment disbursement.
• Offshore Banking Offshore banking operation enabling Shariah-compliant deposit in foreign currency with profit options for international banking customers.
• IBBPLC Help Portal Customer self-service portal providing instant account balance, account statements, card balance inquiry, card statements on demand, and transaction dispute issuance.
• Islami Bank Securities Limited (IBSL) Subsidiary Public Limited Company providing stock brokerage and dealer services in the Bangladesh capital market.
• Islami Bank Capital Management Limited (IBCML) Subsidiary Public Limited Company providing capital market operations and investment management services under Bangladesh Bank oversight.

Quantifiable outcome

• Leading remittance collector with $6.88 billion in FY26
• +3 more outcomes

Named customers4 records

Segments7 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration9 records

Feature6 records

Partnerships

Eight partnerships are on record, tiered minor and core.

• Bangladesh Power Development BoardminorStrategic or Co-development Partner · 2 July 2026Islami Bank signed agreement with Bangladesh Power Development Board in July 2026 for banking services related to power sector operations.
• Railway Co-operative SocietyminorStrategic or Co-development Partner · 25 June 2026Islami Bank signed agreement with Railway Co-operative Society for banking services, providing financial services to railway employees and cooperative members.
• Bangladesh Bank (Coordinating Partner)coreStrategic or Co-development Partner · 2 April 2026Bangladesh Bank is coordinating efforts with 36 non-disclosure agreements signed with multinational legal and advisory firms to trace laundered money and overseas assets of S Alam Group. Islami Bank is recovering S Alam assets as part of this coordinated effort.
• Ria Money TransferminorGTM or Marketing Partner · 19 February 2026Partnership for Islami Bank-Ria Money Transfer Remittance Fiesta campaign during Ramadan 2026, offering promotional incentives including motorcycles through daily digital raffle draws for customers who send cash remittances. The Managing Directors of both institutions inaugurated the campaign at Islami Bank Tower on February 19, 2026.
• Islami Bank Securities LimitedcoreOthersSubsidiary company incorporated March 22, 2010 as Public Limited Company under Companies Act, 1994 to carry out business of Stock Broker & Dealer in the capital market.
• Islami Bank Capital Management Limited (IBCML)coreOthersSubsidiary company that obtained certificate of incorporation as Public Limited Company from RJSC in 2010 and formal approval from Bangladesh Bank, providing capital market operations and investment management services.
• Janata BankminorStrategic or Co-development PartnerJanata Bank is recovering Beximco assets as part of the coordinated effort with Bangladesh Bank and other banks to trace defaulted loans of six major industrial groups totaling Tk 3.35 trillion.
• Islami Bank FoundationminorOthersCorporate social responsibility arm of Islami Bank Bangladesh conducting CSR activities and community development programs.

Scale indicators13 records

Recent moves7 records

Expansion highlights6 records

Emerging players

• Meezan Bank: Pakistan's premier Islamic bank offering Shariah-compliant retail, SME and corporate banking with a comparable focus on Mudaraba/Musharaka financing and digital channels in a neighboring South Asian market.

Broad incumbents

• Al Rajhi Bank: World's largest Islamic bank by assets; serves as the benchmark for global Islamic retail, corporate and treasury banking against which IBBPLC's franchise size, product breadth and digital maturity are measured.
• Bank Islam Malaysia: Established Malaysian Shariah-compliant commercial bank offering comparable retail deposits, SME financing, and Islamic investment products through a multi-channel network.

Direct peers

• EXIM Bank Bangladesh: Bangladesh-based private commercial bank with overlapping Islamic banking product offerings and branch network targeting similar retail, SME and NRB remittance customers.
• Social Islami Bank: Bangladeshi Islamic commercial bank operating with a similar deposit, investment and trade finance product mix and overlapping government/SME customer base.
• Shahjalal Islami Bank: Shariah-based scheduled commercial bank in Bangladesh competing with Islami Bank in retail deposits, corporate financing and Islamic microfinance across the country.
• Al-Arafah Islami Bank: Another Shariah-compliant scheduled commercial bank in Bangladesh competing directly with Islami Bank for retail, SME and corporate Islamic banking customers under the same central bank regulator.
• Union Bank PLC: Bangladesh commercial bank that emerged from the same 2024 merger of Islamic banks; one of the five Islamic banks named in the S. Alam Group recovery coordination effort alongside IBBPLC, sharing exposure and regulatory context.
• First Security Islami Bank: Bangladeshi Islamic commercial bank whose deposit, investment and remittance products compete head-to-head with Islami Bank's Mudaraba and Bai-muajjal offerings in the same Dhaka-centric retail/SME market.

Regional players

• Standard Bank Limited: Bangladesh-based private commercial bank with comparable corporate banking, trade finance and NRB services targeting the same domestic market segments as Islami Bank.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/islamibankbangladeshlimited
• LinkedInlinkedin.com/company/islami-bank-bangladesh-plc
• YouTubeyoutube.com/@islamibankbangladeshplc
• Instagraminstagram.com/islamibankbd
• Xx.com/IBBL1983

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Subsidiaries4 records

Funding overview

Funding rounds2 records

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Islami Bank Bangladesh