Al-Arafah Islami Bank

What Al-Arafah Islami Bank does

Al-Arafah Islami Bank PLC is a Shariah-compliant scheduled bank founded in 1995 and headquartered in Dhaka, Bangladesh, operating across the full Islamic banking value chain under supervision of its Shariah Supervisory Board. The bank is listed on the Dhaka Stock Exchange under symbol ALARABANK and reports 100% indigenous Bangladeshi shareholding, with an employee base of 5,001–10,000 and a stated 97% loan recovery rate. Its customer base spans retail, micro, small and medium enterprises (CMSME), women entrepreneurs, farmers, and rural communities.

The bank delivers a multi-channel proposition combining physical branches, the ARDP rural development programme (286 work stations and 83,455 members), agent banking, Islamic Wallet mobile financial services, and I-Banking. Its product set includes Al-Wadiah and Mudaraba deposit variants; investment products spanning CMSME, Rural Agricultural, Micro Enterprise, Women Entrepreneurs, and Festival financing; the La Riba Platinum Card; and the IlmNet EMS education management platform. Two subsidiaries — AIBL Capital Market Services Ltd and AIBL Capital Management Ltd — extend the franchise into brokerage and merchant banking.

Revenue is generated through profit/rate returns on Shariah-compliant investments (Mudaraba, Murabaha, Ijarah structures), fee-based services, card interchange, agent banking commissions, and capital market activity through the subsidiaries. Recent operational milestones include a core banking system upgrade in February 2026 and the IlmNet EMS soft launch in June 2026. The bank operates exclusively within Bangladesh, with no disclosed geographic expansion beyond domestic borders.

Name

Al-Arafah Islami Bank

Legal name

Al-Arafah Islami Bank PLC

Website

https://aibl.com.bd

Company type

Private

Founded year

1995

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Al-Arafah Islami Bank PLC is a Dhaka-based Shariah-compliant scheduled bank serving retail, CMSME, women entrepreneurs, and rural segments across Bangladesh through branches, ARDP work stations, agent banking, and Islamic Wallet mobile financial services.

Ownership category

akta.pro rank

Product category

Islamic Retail Banking

NAICS

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

SIC

National Commercial Banks (6021)

akta.pro primary industry

Islamic Retail Banking (FSABAGAA)

akta.pro secondary industries

Islamic SME & Commercial Banking (FSABAGAB), Islamic Deposit & Account Products (Current/Savings/Investment Accounts) (FSABAGAI), Islamic Investment Banking & Capital Markets Services (FSABAGAG), Islamic Transaction Banking (Cash Management & Treasury Services) (FSABAGAF), Islamic Private Banking & Wealth (FSABAGAD)

Keywords

• Islamic banking services
• Shariah-compliant finance
• Retail deposit products
• SME investment financing
• Mobile financial services

Headquarters

HQ city

Dhaka

HQ country

Bangladesh

HQ region

Asia

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

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

Revenue model

1. Islamic Banking Income: Profit/rate earnings from Shariah-compliant investments, financing activities, and fee-based services including account maintenance, transactions, and service charges

Go-to-market motion1 record

Distribution channels5 records

Marketing channels3 records

Core offering

Al-Arafah Islami Bank PLC is a Shariah-compliant scheduled Islamic bank in Bangladesh offering a full range of deposit products (Al-Wadiah Current, Mudaraba Savings, Mudaraba Term Deposits, RFCD), investment/financing schemes (CMSME, ARDP, rural agricultural, women entrepreneur, micro-enterprise), an Islamic credit card (La Riba Platinum Card), and digital banking channels (I-Banking, Islamic Wallet mobile financial services, Agent Banking). It also operates capital market and merchant banking through two wholly-owned subsidiaries (AIBL Capital Market Services Ltd and AIBL Capital Management Ltd).

Product overview

Al-Arafah Islami Bank PLC is a Shariah-based Islamic bank offering a comprehensive suite of banking products and services. The portfolio comprises deposit products (Al-Wadiah Current Deposit, Mudaraba Savings Deposit, Mudaraba Term Deposit, Mudaraba Short Notice Deposit, Mudaraba Advantage Deposit Scheme, and RFCD accounts), investment products (CMSME Banking, ARDP, Rural Agricultural Investment Scheme, Micro Enterprise Investment Scheme, Women Entrepreneurs program, and Festival Investment), card services (La Riba Platinum Card), digital channels (I-Banking, Islamic Wallet, Agent Banking), and the IlmNet EMS education management platform. The bank operates two subsidiaries—AIBL Capital Market Services Ltd for brokerage services and AIBL Capital Management Ltd for merchant banking—supported by its internal Training & Research Institute (AIBTRI). The ecosystem integrates with Bangladesh Bank's payment infrastructure (BEFTN, RTGS, NPSB), Election Commission NID servers for e-KYC, and supports mobile operator and merchant QR payments.

Differentiator

Problem solved

Functional benefit

Brands

• Al-Arafah Rural Development Program (ARDP): A comprehensive initiative addressing challenges faced by rural communities with the slogan 'Village will be city', conducting retail investment activities and developing saving attitude based on Islamic shariah.
• Islamic Wallet
• IlmNet EMS
• AIBTRI (Al-Arafah Islami Bank Training & Research Institute)

Products and services

• Al-Wadiah Current Deposit (CD) Shariah-compliant current deposit account based on the Al-Wadiah principle (safekeeping) where the bank guarantees return of the deposit on demand, targeted at individual and business customers needing transactional banking access.
• Mudaraba Savings Deposit (MSD) Shariah-compliant savings account operating on a Mudaraba (profit-sharing) basis where depositors receive 70% of investment profits while bearing potential losses, available to retail customers seeking ethical returns on idle balances.
• Mudaraba Term Deposit Receipt (MTDR) Shariah-compliant term deposit available in 1, 3, 6, 12, 24, and 36-month maturities with weighted profit distribution and an automatic renewal option, targeted at customers seeking fixed-term ethical investment returns.
• Mudaraba Short Notice Deposit (MSND) Notice deposit requiring a 7-day advance withdrawal notice, with profit paid semi-annually based on daily balance calculations, designed for customers needing a balance between liquidity and ethical returns.
• Mudaraba Advantage Deposit Scheme Exclusive deposit scheme for SME and corporate customers offering attractive profit returns, automatic installment realization, and an investment facility of up to 80% of the deposit amount under Shariah-compliant Mudaraba principles.
• Resident Foreign Currency Deposit Account (RFCD) Foreign currency deposit account available in USD, EUR, and GBP for Bangladeshi residents returning from abroad, with profit paid at a benchmark rate plus 1.50% under Shariah-compliant arrangements.
• CMSME Banking Comprehensive Shariah-compliant banking services for Cottage, Micro, Small, and Medium Enterprises, including specialized investment schemes for women entrepreneurs and the agricultural sector.
• Al-Arafah Rural Development Program (ARDP) Comprehensive rural development initiative targeting farmers, laborers, fishermen, and small entrepreneurs with collateral-free investments and group-based lending, delivered through 286 workstations including sub-branches and agent outlets and serving an 83,455-member base.
• Rural Agricultural Investment Scheme Shariah-compliant agricultural investment scheme for marginal farmers covering crops, fisheries, livestock, and irrigation with collateral-free options and weekly/monthly installment repayment.
• Micro Enterprise Investment Scheme (MEIS) Supervised Shariah-compliant investment scheme in operation since 2010 supporting socio-economic development of rural poor including farmers, laborers, fishermen, and micro-businesses, with no collateral requirement.
• Small Enterprise Investment Festival Festival-oriented working capital investment scheme for existing clients in manufacturing, service, and trade sectors linked to religious or cultural festivals.
• Al-Arafah Women Entrepreneurs Investment Program Shariah-compliant investment program prioritizing women entrepreneurs with collateral-free options across productive sectors, including products such as Al-Arafah UDDOG, UTHSOB, UNNAYAN, PUNJI, and SONIRBHAR.
• La Riba Platinum Card Shariah-compliant Islamic credit card offering flexibility and benefits without riba (interest), designed to suit various customer segments for riba-free transactional and consumption financing.
• Islamic Wallet Shariah-compliant Mobile Financial Services (MFS) platform enabling cash-in/out, mobile recharge, bill payment, merchant payments via Bangla QR, fund transfers, and tuition fee payments for retail and SME customers.
• I-Banking (Internet Banking) Online banking platform providing account access, interbank fund transfers via BEFTN/RTGS/NPSB, utility bill payments, mobile recharge, credit card payments, and rapid account opening through e-KYC for retail and corporate customers.
• Agent Banking Banking services delivered through authorized agents in underserved and remote areas, offering account opening, deposits, withdrawals, fund transfers, and Islamic Wallet management to expand rural financial access.
• IlmNet EMS (Education Management System)

Quantifiable outcome

• 97% loan recovery rate demonstrates strong portfolio quality and responsible lending practices

Segments5 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration7 records

AI capability4 records

Feature1 record

Scale indicators3 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• First Security Islami Bank Limited: Bangladesh-based scheduled Islamic bank providing Shariah-compliant retail, corporate, and CMSME banking products. Comparable in product mix (Mudaraba deposits, Bai-based investments, agent banking) and target segments to Al-Arafah Islami Bank.
• ICB Islamic Bank Limited: Smaller Bangladesh-based Shariah-compliant bank offering Islamic deposit and investment products to retail and corporate clients. Direct niche competitor to Al-Arafah in the domestic Islamic banking segment, especially in similar CMSME and retail segments.
• Exim Bank Bangladesh PLC: Bangladesh-based Islamic bank providing a comparable suite of Shariah-compliant retail and corporate banking services, including Mudaraba deposits and CMSME financing — directly competing with Al-Arafah in the same domestic Islamic banking market.
• Shahjalal Islami Bank PLC: Bangladesh Shariah-based commercial bank with retail, corporate, and Islamic investment products. Competes head-to-head with Al-Arafah in Mudaraba-based deposits and Shariah-compliant CMSME financing across similar geographies.
• Social Islami Bank Limited: Scheduled Islamic bank in Bangladesh offering deposit, investment, trade finance, and remittance products on Shariah principles. Directly comparable in business model, customer segments, and product taxonomy to Al-Arafah.
• Islami Bank Bangladesh PLC: The largest Shariah-compliant scheduled bank in Bangladesh, offering the same full suite of Islamic deposit, investment, and trade finance products to retail and corporate customers. Direct competitor for the same Muslim-majority deposit base and CMSME financing market that Al-Arafah targets.

Regional players

• Bank Islam Malaysia Berhad: Malaysia's flagship Shariah-compliant bank, offering Mudaraba, Ijarah, and other Islamic contracts across retail and corporate segments. Relevant as a regional Islamic banking benchmark for product design, Shariah governance, and digital Islamic banking practices.

Broad incumbents

• Dutch-Bangla Bank PLC: Bangladesh's largest agent banking and ATM network operator; while conventional, it competes for the same mass-market and rural customers Al-Arafah targets through ARDP and agent banking, and is a relevant benchmark for digital/agent banking scale.
• BRAC Bank PLC: One of Bangladesh's largest and most digitized banks; although conventional rather than fully Islamic, it competes aggressively for the same retail, CMSME, and digital-banking customers, including via Astha app and agent banking — a benchmark for Al-Arafah's digital and retail aspirations.
• Al Rajhi Banking and Investment Corporation: The world's largest Islamic bank by assets, providing a comprehensive Shariah-compliant retail, corporate, and investment banking franchise. Useful as a global benchmark for Islamic banking scale, capital markets activity, and product breadth relevant to Al-Arafah's longer-term ambitions.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/islamicwallet

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Subsidiaries2 records

Funding overview

Funding rounds1 record

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 Al-Arafah Islami Bank