Islamic Bank of Thailand

What Islamic Bank of Thailand does

Islamic Bank of Thailand (ibank) is a state-owned specialized bank incorporated in 2002 under the Islamic Bank of Thailand Act B.E. 2545 and supervised by the Ministry of Finance. It is the only Thai bank mandated to operate entirely under Shariah principles, replacing interest (riba) with profit-sharing mechanisms such as mudharabah and musharakah across all products. Core offerings include Islamic financing for retail (home, personal, life-stage-segmented), SME and large business customers; Shariah-compliant deposit products (wadi'ah savings, mudharabah term deposits, Hajj/Umrah savings); takaful insurance intermediation; trade finance services including letters of credit, shipping guarantees, and SWIFT-based remittances; and specialized services such as zakat management and kafalah bank guarantees, all overseen by a Shariah Advisory Council.

The bank's technology stack centers on the ibank Application mobile banking platform built on the government Paotong (เป๋าตัง) infrastructure, the ibank Financing app for digital credit applications, and integrations with PromptPay, SWIFT, the National Saving Fund, and G Wallet government stimulus. Distribution combines a nationwide physical branch network with self-serve digital channels, a dedicated call center (1302), LINE Official social engagement, and government policy program channels such as IGNITE HALAL (targeting 2 billion baht in SME halal financing across 14 southern provinces) and the Thai Business Recovery Loan program, often in partnership with the Small Industry Credit Guarantee Corporation (บสย.) for collateral-free SME lending.

Revenue is generated through profit margins on Islamic financing (with maximum selling profit rates of 18% secured and 25% unsecured, against an SPRL of 7.80% as of March 2025), profit-sharing on deposits deployed into financing, transaction fees on trade finance and bank guarantees, and commissions from takaful insurance intermediation. The bank serves retail individuals across life stages, SME entrepreneurs in halal sectors (tourism, food, medical/health), trade-finance customers, and government and education-sector employees via MOU-based payroll deduction partnerships, with strategic emphasis on the southern border provinces and the Andaman coast.

Name

Islamic Bank of Thailand

Legal name

Islamic Bank of Thailand

Website

https://ibank.co.th

Company type

Private

Founded year

2002

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Islamic Bank of Thailand (ibank) is a state-owned specialized bank under the Ministry of Finance, the only Thai institution operating entirely under Shariah principles, offering Islamic financing, Shariah-compliant deposits, takaful, trade finance, and zakat management to retail, SME, and government customers across Thailand.

Ownership category

akta.pro rank

Product category

Islamic Banking

NAICS

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

SIC

National Commercial Banks (6021)

akta.pro industry

PRIMARYFSABAGAB

Islamic SME & Commercial Banking

Financial & Insurance/Banking (Commerical, Retail & Consumer)/Islamic Banking

SECONDARYFSABAGAA

Islamic Retail Banking

Financial & Insurance/Banking (Commerical, Retail & Consumer)/Islamic Banking

SECONDARYFSABAGAH

Shariah-compliant Financing Products (Murabaha, Ijara, Tawarruq, Istisna, Salam)

Financial & Insurance/Banking (Commerical, Retail & Consumer)/Islamic Banking

SECONDARYFSABAGAE

Islamic Trade Finance & Supply Chain (Shariah-compliant)

Financial & Insurance/Banking (Commerical, Retail & Consumer)/Islamic Banking

SECONDARYFSABAGAI

Islamic Deposit & Account Products (Current/Savings/Investment Accounts)

Financial & Insurance/Banking (Commerical, Retail & Consumer)/Islamic Banking

Keywords

• Islamic banking services
• Shariah-compliant financing
• Takaful insurance products
• SME trade finance
• Islamic deposit accounts

Headquarters

HQ city

Watthana

HQ country

Thailand

HQ region

Asia

Offices2 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D

Revenue model

1. Islamic Financing / Credit: The bank generates revenue primarily through Shariah-compliant financing products. These include home financing (murabahah/commercial financing), personal financing for individuals, SME and business financing, and trade finance. Revenue is generated as profit margin (instead of interest) on financing extended to customers. Key products include home financing (สินเชื่อเพื่อที่อยู่อาศัย), term financing for SMEs, Islamic overdraft facilities, and import/export financing. Profit rates are expressed as SPRL (Standard Profit Rate with Long Term Financing) and SPRR (Standard Profit Rate for Prime Retail Customer). Maximum selling profit rate for secured financing is 18% per year and 25% per year for unsecured financing.
2. Deposits: The bank accepts Shariah-compliant deposits including savings accounts (wadi'ah), term deposits (mudharabah), and special purpose deposits such as Hajj/Umrah savings accounts. Revenue from deposits is generated by using depositor funds for Islamic financing activities, with profit-sharing arrangements.
3. Takaful (Islamic Insurance): The bank offers takaful insurance products — family takaful, motor takaful, fire takaful, accident insurance takaful, and credit-related takaful — acting as an intermediary for takaful providers rather than as the primary insurer.
4. Trade Finance Services: International trade finance services including letters of credit (L/C), shipping guarantees, export bill purchases, inward/outward remittances via SWIFT, and bank guarantees (kafalah) — generating fee-based income.
5. Fee-Based Services: ATM card services, bill payment services, direct debit, PromptPay, National Saving Fund subscriptions, and property auction services generating ancillary fee income.

Pricing tiers

Go-to-market motion2 records

Distribution channels7 records

Marketing channels7 records

Core offering

Islamic Bank of Thailand (ibank) is a state-owned Shariah-compliant bank that provides Islamic financial products including personal and business financing (home, personal, SME, trade finance), deposit accounts based on Wadi'ah and Mudharabah principles, Takaful (Islamic insurance) products, Zakat management services, and Kafalah bank guarantees. All products and operations are overseen by a Shariah Advisory Council to ensure compliance with Islamic financial principles, replacing interest-based instruments with profit-sharing mechanisms.

Product overview

Islamic Bank of Thailand (ibank) operates as a Shariah-compliant state-owned bank offering a comprehensive portfolio of Islamic banking products and services. The core offerings include Business Financing (Small Business, SME, and International Trade Finance), Personal Financing segmented by life stage (Studying, Working, Retired), and Deposit Products based on Wadi'ah and Mudharabah principles. The bank provides mobile banking through the ibank Application and ibank Financing app, alongside specialized services including Takaful insurance, Zakat management, Kafalah guarantees, and trade finance. Property for sale and various promotional programs like the IGNITE HALAL Credit Project complement the portfolio.

Differentiator

Problem solved

Functional benefit

Products and services

• Business Financing (Credit) Comprehensive business financing products for small businesses, SMEs and large enterprises (fixed-term credit, revolving credit, obligations) and international business customers (import/export financing, guarantees, currency exchange).
• Personal Financing (Credit) Personal credit products segmented by life stage (Studying, Working, and Retired), including home loans and multi-purpose loans for individual customers.
• Home Financing (Sa-chai Tee Yao Chai) Islamic home financing for purchasing new or secondhand homes, construction, renovation, refinancing, or land purchase with built property. Credit limits range 300,000 to 20,000,000 baht with repayment periods of 3-35 years.
• Deposit Products (Wadi'ah and Mudharabah) Shariah-compliant deposit accounts including Wadi'ah savings, Mudharabah term deposits, and specialized accounts for Hajj/Umrah savings, retirement, and student savings.
• Takaful (Islamic Insurance) Shariah-compliant insurance products including Family Takaful, Motor Takaful, Fire Takaful, Accident Insurance Takaful, credit-related Takaful, and miscellaneous coverage, offered as an intermediary for takaful providers.
• Zakat Management Services Services for calculating, managing, and distributing Zakat (Islamic almsgiving), including dedicated deposit accounts, knowledge resources, and annual management reports.
• Trade Finance International trade services including import/export financing, letters of credit (L/C), shipping guarantees, export bill purchases, bill collection, inward/outward remittances via SWIFT, and foreign currency exchange.
• Kafalah Bank Guarantee Islamic-compliant bank guarantee service based on Al Kafalah principle, covering bid bonds, performance bonds, advance payment guarantees, and retention/warranty guarantees for businesses.
• Kafalah Acceptance and Aval Acceptance of bills of exchange and avalization of promissory notes under Al Kafalah principle for entrepreneurs requiring guarantee of payment on negotiable instruments.
• ibank Application (Mobile Banking) Mobile banking application integrated with the Paotong platform providing online banking services including account opening (ibank e-Savings), fund transfers, deposits, bill payments, PromptPay registration, and G Wallet top-up via smartphone.
• ibank Financing (Mobile Credit Application) Dedicated mobile application for applying for personal or business financing with streamlined digital application process, accessible via smartphone or tablet on Android and iOS platforms.
• ibank e-Savings Electronic savings account accessible through ibank Application with 2.200% expected return rate, immediate activation, and support for transfers, top-ups, payments, and withdrawals.
• IGNITE HALAL Credit Project Special financing program supporting SME entrepreneurs in tourism, food, and medical/health business groups across 14 southern provinces and the Andaman coast with a target of 2 billion baht credit disbursement, offering financing of 1-5 million baht without collateral.

Quantifiable outcome

• Phuket branch SME credit disbursement reached 4,300 million baht across Phuket and 14 southern provinces as of August 2024.
• +2 more outcomes

Named customers5 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration4 records

Feature4 records

Partnerships

Four partnerships are on record, tiered minor.

• Kasem Bundit University (มหาวิทยาลัยเกษมบัณฑิต)minorStrategic or Co-development Partner · 8 May 2024MOU for comprehensive Islamic financial services including housing loans (up to 20 million baht, 35-year repayment), Hajj/Umrah savings accounts with lottery prizes (total prizes 7,650,000 baht), time deposits (2.40% return), ibank Step savings (1.25% return), takaful insurance, and education fund management for university staff and students. Also includes social activities and Islamic finance knowledge expansion.
• Pichean Technology College (วิทยาลัยเทคโนโลยีพิชญเกษม)minorStrategic or Co-development Partner · 8 May 2024MOU for financial services similar to Kasem Bundit University partnership, covering housing loans, Hajj/Umrah savings, deposits, and takaful insurance for college staff and students.
• Kasempittaya School (โรงเรียนเกษมพิทยา)minorStrategic or Co-development Partner · 8 May 2024MOU for financial services for school staff including housing loans, Hajj/Umrah savings, deposits, and takaful insurance.
• Port Authority of Thailand (การท่าเรือแห่งประเทศไทย - กทท.)minorStrategic or Co-development Partner · 26 April 2023MOU for Personnel Welfare Financial Project providing preferential financing terms for Port Authority of Thailand employees including housing loans and personal financing with salary deduction arrangements.

Scale indicators11 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• Bank Muamalat Malaysia Berhad: Malaysia's first full-fledged Islamic bank and a direct ASEAN-region peer. Offers Shariah-compliant retail, SME and corporate banking with similar product breadth (deposits, financing, takaful). Comparable scale and domestic focus to ibank.
• Bank Islam Malaysia Berhad: Malaysia's oldest Islamic bank, also operating under dedicated Shariah governance with full retail and SME Islamic banking products. Its government-influenced shareholder base and ASEAN positioning make it a structural parallel to Islamic Bank of Thailand.

Broad incumbents

• Kuwait Finance House: One of the largest Islamic banks globally, offering retail, corporate, SME and trade finance under Shariah principles. Operates with government-related shareholders — analogous institutional governance profile to ibank as a state-linked specialist.
• Qatar Islamic Bank: Leading GCC Islamic bank owned partly by sovereign funds, offering Shariah retail, SME and corporate banking plus takaful distribution. Comparable as a state-influenced, full-Islamic commercial bank with government-aligned mandates.
• Dubai Islamic Bank: UAE's largest Islamic bank and government-linked, providing full retail/SME/corporate Shariah banking and real-estate finance. Comparable state-anchored positioning and product breadth (deposits, financing, trade, takaful).
• Abu Dhabi Islamic Bank (ADIB): UAE-listed full-Islamic commercial bank with retail, SME, corporate and trade finance offerings. Mix of government and private ownership and similar product portfolio makes it a like-for-like state-influenced comparator.
• Al Rajhi Bank: Largest Islamic bank globally by assets, dominant in Saudi retail and SME Shariah banking with extensive branch network. Comparable retail/SME focus and broad product range (deposits, financing, takaful) although materially larger scale.

Emerging players

• Maybank Islamic Berhad: Islamic banking subsidiary of Malaysia's largest bank, offering Shariah retail, SME and corporate products. Comparable as a top-tier ASEAN Islamic franchise though it operates as a window inside a larger conventional group.
• CIMB Islamic Berhad: Islamic arm of CIMB Group serving retail, SME and corporate customers across ASEAN with Shariah-compliant products. Relevant as an Islamic-banking unit operating in Thailand-adjacent ASEAN markets with similar product sets.

Others

• HSBC Amanah Malaysia: Global bank's Islamic window operating in Malaysia, offering cross-border trade finance, deposit and financing products. Relevant as an international competitor serving Thai SMEs with cross-border halal trade needs.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/ibank.th

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Funding overview

Funding rounds

Investors

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 Islamic Bank of Thailand