Types investment in Islamic Banking and Risk in First Security Islami Bank Ltd.

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Types investment in Islamic Banking and Risk in First Security Islami Bank Ltd.

Chapter – 01


Chapter -1

1. Introduction

1.1 Background of the study

As the requirement of the report first we need to know about investment & Types investment in Islamic Banking and Risk in First Security Islami Bank Ltd. Investment is a term frequently used in the fields of economics, business management and finance. It can mean savings alone, or savings made through delayed consumption. In generally Investment means deploying of fund in a profitable sector to get more returns.

Islamic Economic system is based on equitable treatment of assets. Islamic Shari’ah prevents injustice in the acquisition and disposal of material resources and required full utilization of these resources in order to allow satisfaction of worldly needs of human beings in the optimal manners; thus avoiding wastage and enabling human beings to perform their obligations to Allah and the society.

In today’s modern world the banking sector is uprising and playing a vital role in our economic development. It is also playing a significant role in expanding investment operation of the country. It builds up the country day by day and rural people increasing their daily life. Islamic Banking system is one of the most effective systems in banking sector. Islami Banking a new role of banking that operates on principles adhering to the Quranic norms forbidding usury and transactions, including granting of loans or credits for interest. The economic rationale for eliminating riba (interest) and establishing the Islamic banking system is based on values of justice, efficiency, stability and growth. First Security Islami Bank Ltd. is one of the largest commercial bank and Islamic financial institution of the country. It operates all its activities under the obligation of Islamic Shariah including. As an Islamic Bank FSIBL has some differences in investment modes along with regular activities. It has some unique products & services in financing Investment. Such as Bai-Murabaha, Musaraka, HPSM, Bai Salam, Bai-Asraf etc.

According to the principle of Islamic Shariah, interest is strictly prohibited. So FSIBL is conducted based on profit & loss sharing approach rather than interest basis. So, to operate the financing on the basis of “Profit & Loss Sharing Approach” FSIBL considers financing investment under different Islamic modes and executes “Buy & Sell” operation with the clients.

In my report I try to find out the Islamic ideas regarding investment & function of investment field and also try to find out problem of investment sector in FSIBL.


As an obligatory requirement of BBA Internship program, I have prepared this report for the partial fulfillment of our BBA internship program. In my report entitled “Types of Investment and Risk in First Security Islami Bank Ltd (FSIBL)”, here I am supposed to analyze investment banking as a whole scenario of First Security Islami Bank Ltd (FSIBL) particularly in terms of its precise definition, problems, factors, contributions, and inventions on the economic of Bangladesh.

1.3 Methodology

1.3.1 Data collection

This report is prepared based on the information extracted from different sources.

Sources of data: All the information in the study has been incorporated and collected from the primary sources as well as secondary sources.

Primary Sources:

  1. Interviewing officers and staffs.
  2. Sharing practical knowledge of officials.
  3. Relevant file study provided by the officers concerned.
  4. Face to face conversation with the respective officers and staffs.

Secondary Sources:

  1. Annual report of First Security Islami Bank Ltd.
  2. Manuals for investment published by the bank.
  3. Website of the bank.
  4. Internet
  5. Relevant books, Research papers, Newspapers, Articles and Journals.

1.3.2 Analysis of the Data

All the collected data were edited, coded and classified before making the final report.

1.4 Scope of the STUDY:

In this report I have focused on all the qualitative which include profiles of FSIBL, investment modes like Bai mode, Profit & loss sharing, bearing mode, Rent sharing mode, different schemes of investment such as household durable schemes, housing investment scheme, transport investment scheme, car investment scheme, investment scheme for doctors small business investment scheme, rural development scheme, etc. and lastly financial performances have been depicted.

1.5 Limitation

To ready this report I am getting face some problem which are obstacle for my report. Which are given below;

· All updatable news is not available.

· Time is the main problem because it is very important for me but I could not get enough time to make this report.

· FSIBL website is not getting enough information for me. So I collect information from different source, so it impossible for all students to collect all information.

· Since the bank personnel were very busy, they could not pay enough time.Lack of information in our library.


Activity chart of the research:


Literature Review For

Islamic Banking

2.1 “Islamic banking is an area that has mushroomed to become an increasingly substantial segment within the global financial market. It has been recognised as a viable and competitive form of financial intermediation not only in Muslim countries but also outside the Muslim world and offering a wide range of financial products and services. The industry that started on a modest scale since its inception in the mid-1970s has shown a rapid expansion and evolution over the past three decades. It is in fact one of the fastest growing industries, having posted double-digit annual growth rates for almost 30 years (Iqbal and Molyneux, 2005). According to information released by Council for Islamic Banks and Financial Institutions (CIBAFI), there are over 284 financial institutions operating in 38 countries and managing US$250 billion. This does not include conventional banks offering Islamic financial products and services through window operations, which CIBAFI estimates to manage about US$200 billion.(Paper published in International Journal of Islamic and Middle Eastern Finance and Management; Vol.1, Issue 2. 2008 (Published by Emerald Group Publishing,Understanding the Objectives of Islamic Banking: A Survey of Stakeholders’ Perspectives By: Dr. Asyraf Wajdi Dusuki)

2.2 “Islamic bank is a financial institution whose statutes, rules and procedures expressly state its commitment to the principles of Islamic Shariah and to the banning of the receipt and payment of interest on any of its operations.” Organization of Islamic Conference (OIC)

2.3 “Islamic Bank is essentially a normative concept and could be defined as conduct of banking in consonance with the ethos of the value system of Islam.”( Dr. Ziauddin Ahmed)

2.4 “There are two reasons for establishing the right philosophies for any Islamic bank. First, the philosophies will be used by the management or policy makers of the banks in the process of formulating corporate objectives and policies. Secondly, these philosophies serve as an indicator as to whether the particular Islamic bank is upholding true Islamic principles. (Haron in 1996)

Chapter – 3

Concept about the Islamic Banking

Islamic banking refers to a system of banking or banking activity that is consistent with the principles of Islamic law (Sharia) and its practical application through the development of Islamic economics. Sharia prohibits the payment or acceptance of interest fees for the lending and accepting of money respectively.An Islamic Bank is a financial institution that operates with the objective to implement and materialize the economic and financial principles of Islam in the banking arena. The Islamic banks organize their operation on the basis of profit/loss sharing and other modes which are permitted in Islam.

The fundamental differences between Islamic banking and conventional banking, not only in the ways they practice their businesses, but above all the values which guide Islamic banking whole operation and outlook. These values prevailed within the ambit of Shariah (Islamic law) are expressed not only in the minutiae of its transactions, but in the breadth of its role in society.

In other words, as a Shariah-based firm, Islamic banks need to fulfil social obligations that go beyond the conventional capitalist worldview aiming at only maximizing profits.

3.1 Objectives & Aims of Islamic Banking:To understand Islamic banking in its entirety requires full comprehension of its objectives and philosophy. As a Shariah-oriented business entity, Islamic bank is vigorously expected to be guided by the philosophy of Islamic business. There are given the objectives of Islamic banking:

  • To conduct interest free banking.
  • To establish participatory banking instead of banking on debtor creditor relationship.
  • To invest through different modes permitted under Islamic Shariah
  • To accept deposits on profit-loss sharing basis.
  • To establish a welfare-oriented banking system.
  • To extend co-operation to the poor, the helpless and the low-income group for economic uplift.
  • To pay a vital role in human development and employment generation.
  • To contribute towards balanced growth and development of the country through investment operations particularly in the less developed country for achieving the ultimate goal of Islamic economic system.

Table I summarises the fundamental differences between FSIBL Islamic banks and conventional banks.

Table I: Fundamental Distinctions between Islamic Banks and Conventional Banks

Islamic Banks Conventional Banks
FSIBL Functions and operations are guided by sources of Shariah (Islamic Divine Law) namely the Quran and the Sunnah (traditions of the Prophet Muhammad p.b.u.h.). Functions and operations are guided by secular principles and not based on any religious doctrines and values.
FSIBL aim at balancing between profit-maximization doctrine and social responsibility. Institutions that emphasis on profits maximization and low risk.
In the modern FSIBL system, it has become one of the service-oriented functions of the IBBL to collect and distribute Zakat. It does not deal with Zakat
Financing instruments of FSIBL are based on either asset-backed trading contract or equity financing with risk sharing. Financing instruments are based on interest-bearing mechanism.
FSIBL Deposits are not interest-oriented but profit-loss sharing oriented whereby investors’ principal repayment is not guaranteed but entitled to a predetermined share of actual profit realized by the business. Conventional banks Deposits are interest oriented and the investor is assured of a predetermined rate of interest with a guaranteed principal repayment.
The FSIBL has no provision to charge any extra money from the defaulters. Normally It can charge additional money (compound rate of interest) in case of defaulters.
Islamic banks are restricted to participate in economic activities which are unethical and prohibited by Shariah such as businesses involving alcohol, prostitution, pork, environmental pollution etc. There are no such restrictions for conventional banks.
Islamic banks need to do charity by paying zakah (compulsory religious levy) out of There are no such requirements to do charity.
The FSIBL give greater emphasis on the viability of the projects. The conventional banks give greater emphasis on credit-worthiness of the clients.
Strictly speaking, FSIBL cannot do that A conventional bank has to guarantee all its deposits.

3.2 The Origin of Islamic Banking

The origins of Islamic banking can be traced back to the practice of mudaraba by the Prophet Muhammad (Sm) himself. The Prophet (Sm) was mudarib (agent) for his wife, who entrusted her capital or merchandise to him for trading and got back the principal plus an agreed share of the profit. As a reward for his labor (and entrepreneurship), the Prophet (mudarib) received his share of the same. The mudarib, however, was not liable for losses resulting from the exigencies of travel or from an unsuccessful business venture. This form of partnership is called mudaraba. There is another form of partnership called musharaka, in which the musharik (agent) has a contribution to the capital and can therefore, claim a higher percentage of profit. As early as in the seventh century, the tax revenue from Iraq was sent across the desert to Medina in the form of a mudaraba. Caliph Umar is known to have invested orphans’ money in merchant trading between Medina and Iraq. Musharaka partnerships were practised in the north-south trade between Egypt and Jeddah during the eleventh century. As many as 32 mudaraba contracts were practised in the 17th century in the Turkish city of Busra. Mudaraba was in practice in Tunisia, Indonesia, Arabian Peninsula and India.

3.3 The concept of Modern Islamic Banking:

Modern Islamic banking concepts came from the historical practice of the concept of a ‘three-tier mudaraba’.

The first tier, there is the individual, rab-al-mal, who wishes to invest capital.

The second tier is the mudarib (agent), to whom the rab al-mal entrusts his capital by contract and finally,

The third tier, there is the entrepreneur, with whom the mudarib signs a contract, and to whom the mudarib passes the capital originally entrusted to him by the rab-al-mal.

3.4 The first attempt to establish an Islamic financial institution:

The first attempt to establish an Islamic financial institution took place in Pakistan in late 1950s with the establishment of a local Islamic bank in a rural area. Borrowers of the bank did not pay interest on the credit advanced, but a small charge was levied to cover the bank’s operational expenses. Although the experience was encouraging, two main factors were responsible for its failure.

First, the deposits made in the bank were to be held for long and the depositors, who were mostly the landlords found that with increasing number of borrowers the gap between the amounts of capital available and that of the credit demanded had become very large.

Secondly, the depositors showed considerable interest in the way their money was lent out but the bank staff did not have complete autonomy over the bank’s operations and therefore, could not always satisfy the customers in this regard.

3.5 Starting of Islamic banking in Bangladesh:

First, Islamic banking started in Bangladesh through establishment of the islami bank bangladesh Ltd. (IBBL), which is considered to be the first interest-free bank in Southeast Asia. It was incorporated on 13 March 1983 as a public limited company under the companies act 1913. In December 2001, IBBL had 121 branches, its authorised capital was Tk 1000 million and paid up capital Tk 640 million.

Second, al baraka bank Ltd, often called the second Islamic bank of Bangladesh, commenced banking business on 20 May 1997. It is a joint-venture enterprise of Al-Baraka Investment and Development Company, a renowned financial and business house of Saudi Arabia, Islamic Development Bank, a group of eminent industrialists of Bangladesh, and the government of Bangladesh. The authorised capital of the bank is Tk 600 million and its paid up capital is Tk 259.55 million. The bank has now 35 branches in different parts of the country. (banglapedia).

Dr. Seyed Nezamuddin Makiyanhas mentioned about the operational risk of Islamic banking in the article on “Risk Management and Challenges in Islamic Banks” which was published in the Journal of Islamic Economics, Banking and Finance.These are given below-

Operational risk may arise from various sources:

a) The unique activities that Islamic banks must perform.

b) The non-standardized nature of some Islamic products.

c) The lack of an efficient and reliable Shari’ah legislation system to enforce financial contracts.

From the viewpoint of Islamic Shariah, in order to be justified islamically the banking system has to avoid interest. Consequently, financial intermediation in Islamic banking between the bank and the client takes place as a partner rather than a debtor-creditor. The financial activities of modern conventional banks are based on a creditor-debtor relationship between depositors and bank on the one hand and between the borrower and the bank on the other Interest is regarded by conventional banks as the price of credit reflecting the opportunity cost of money. As interest is prohibited in Islam, commercial banking in an Islamic framework could not be based on the creditor-debtor relationship. The other aspect of the theoretical basis of Islamic banking is that the interest free bank is not risk free. This principle is applicable to two main factors of production, i.e. labor and capital. According to this principle, as no payment is allowed to labor, unless it is applied to work, no reward for capital should be allowed unless it is exposed to business risk. From these two principles of the theoretical basis of Islamic banking, it may be said that Islamic financial relationships are of a participatory nature (Ahmad, 1993).

(ISLAMIC BANKING IN BANGLADESH: A CASE STUDY OF IBBLMohammed Nurul Alam, International Journal of Islamic Financial Services Vol. 1 No.4).

Chapter – 04

Overview of the FSIBL


First Security Islami Bank Limited (FSIBL) was incorporated in Bangladesh on 29 August 1999 as a banking company under Companies Act 1994 to carry on banking business. It obtained permission from Bangladesh Bank on 22 September 1999 to commence its business as a name of First Security Bank Limited which conducted their banking operation as conventional Banking. After Nine year conventional banking operation 1st January,2009 it converted into a full fledged islamic Bank rename as “ First Security Islami Bank Limited. The Bank carries banking activities through its FIFTY TWO (53) branches through out the country. The commercial banking activities of the bank encompass a wide range of services including accepting deposits, making investment, discounting bills, conducting money transfer and foreign exchange transactions, and performing other related services such as safe keeping, collections and issuing guarantees, acceptances and letter of credit.

4.1.1 Business philosophy of FSIBL:

The philosophy of First security Islami Bank Limited is to the principles of Islamic Shariah. The organization of Islamic conference (OIC) defines an Islamic Bank as “a financial institution whose status, rules and procedures expressly state its commitment to the principles of Islamic Shariah and to the banking of the receipt and payment of interest on any of its operations. The sponsor, perception is that FSIBL should be quite different from other privately owned and managed commercial bank operating in Bangladesh, FSIBL to grow as a leader in the industry rather than a follower. The leadership will be in the area of service, constant effort being made to add new dimensions so that clients can get “Additional” in the matterof services commensurate with the needs and requirement of the country growing society and developing economy.

4.1.2 Objective of FSIBL

To be a provider of high quality products and services to its potential market, the bank also caters to the needs of its corporate clients and provides a comprehensive range of financial services to national & multinational companies.

4.1.3 Vision:

  • To become the Bank of choice in serving the Nation as a progressive and Socially Responsible financial institution by bringing credit & commerce together for profit and sustainable growth.
  • In accomplishing this mission, the bank has now been free from all the natures of a problem bank through fulfilling all the conditions set by the central bank. They proudly say: “FSIBL is profit making and problem free.
  • To establish FSIBL as a role model in the banking sector in Bangladesh and to be a part of the national development by providing the needs of customers , to give customers inspirational strength, dependable support and the most comprehensive range of business solutions, through the team of professionals who work passionately to be outstanding in everything to do.

4.1.4 Mission:

    • To be the most caring and customer friendly and service oriented bank.
    • To create a technology based most efficient banking environment for its customers.
    • To ensure ethics and transparency in all levels.
    • To ensure sustainable growth and establish full value of the honorable shareholders and
    • Above all, to add effective contribution to the national economy.
    • Maintaining the highest ethical standards and a community responsibility worthy of a leading corporate citizen.
    • Continuously improving productivity and profitability and thereby enhancing shareholder value.

4.1.5 Special Features of First Security Islami Bank:

All activities are conducted on interest-free system in accordance with Islamic Shariah Principles.

  • Investment is made through different modes as per Islamic Shariah.
  • Investment-income of the Bank is shared with the Mudaraba depositors according to an agreed upon ratio ensuring a reasonably fair rate of return on their deposits.
  • Aims to introduce a welfare-oriented system and also to establish equity and justice in the field of economic operators.
  • Extends socio-economic and financial services to individuals of all economic background with strong commitment in rural advancement uplift.

4.2 Corporate information (as on Dec 31, 2010)

First Security Islami Bank Limited


For the ended year of Dec31, 2010

Name of the Company First Security Islami Bank Ltd.
Chairman Mohammad Saiful Alam
Vice Chairman Alhaj Mohammad Abdul Maleque
Managing Director A.A.M. Zakaria
Company Secretary Abdul Hannan Khan
Legal Status Public Limited Company
Date of Incorporation 29 August1999
Date of Commencement of Business 29 August 1999
Date of Permission from Bangladesh Bank 22 September 1999
Date of Opening of First Branch 25 October 1999
Registered Office 23, Dilkusha Commercial Area,

Dhaka-1000, Bangladesh

Line of Business Banking
Authorized Capital Tk.4,600 Million
Paid up Capital Tk.2,300 Million
Date of consent of IPO 04 June 2008
Phone 9560229 (Hunting),9550334,7171029-30

9565594 (Share Division)

Fax 880-02-9561637
E-mail bcs@fsblbd.com
Website www.fsblbd.com
Auditors Syful Shamsul Alam & Co .

Chartered Accountants

Corporate Office

Paramount Heights

65/2/1 Box Culvert road (Level-6)

Purana Paltan, Dhaka-1000, Bangladesh

Phone: 9555915, 9560332

Email: syful@intechworld.net

Legal Advisor The Law Counsel

Barrister & Advocates

City Heart (7th Floor)

Suit No. 8/8, 67, Naya Paltan, Dhaka-1000

Phone: 9349647-8

Fax: 9349866, 9567029

E-mail: l.counsel@bdonline.com

Tax Consultant K.M. Hasan FCA

K.M. Hasan & Co.

Chartered Accountants

Dhaka Office

Home Tower Apartment (8 th & 9 th Floor )

87, New Eskaton Road , Dhaka – 1000

Phone: 9351457,9351564

Fax: 9345792-112

4.2.1Information Technology:

First Security Bank Limited (FSIBL) started its Banking operations with strong Information Technology(IT) based Software “PcBank2000”from the very beginning of Banking operation of its all the branches. Recently they have plan to upgrade their software into “BANK ULTIMUS” which will cover the all current issues of banking solutions to the customer with a single server. It maintains the Local Area Network (LAN).

4.2.3 Address of the Head Office:

First Security Islami Bank Limiteder

23, Dilkusha Commercial Area



Telephone : 9560229(Hunting),9550334, 7171029-30

Fax : 880-2-9561637


Cable : First Security Islami BANK

E-Mail : info@islamibankbd.com

Web : http://www.fsiblbd.com

4.2.4 Branch Location in FSIBL

FSIBL has the largest network of branches among PCBs. FSIBL has 66 branches up-to-date located at different commercially important places. All branches are in considered as online branches. With the expansion of business, Bank divided their branches in 6 Zones to ensure close supervision, effective monitoring, and quick disposal of business and optimum utilization of manpower. 26 branches are located in 3 Dhaka Zones (Dhaka Central, South & North Zones), 25 branches are in Chittagong Zone, 04 branches are in Khulna Zone, 06 are in Sylhet Zone, 02 branches in Barisal Zone, and 03branches in Rajshahi Zone.

HEAD OFFICE : 23, Dilkusha Commercial Area, Dhaka-1000, Bangladesh

Tel:(8802) 9560229 (Hunting), 9550334, 7171029-30Fax: 880-2-9561637, 7162566 Swift: FSEBBDDH, E-Mail: md@fsblbd.com



23, Dilkusha Commercial Area


Tel: (8802) 9560229 (Hunting),

9550334, 7171029-30

Fax: 880-2-9561637, 7162566

E-Mail: dilkusha@fsblbd.com


122 Gulshan Avenue,

Gulshan-2, Dhaka,Bangladesh

Tel: (8802)8861829, 9895381,

8814438, 9897915

Fax: 88-02-9887931

E-Mail: gulshan@fsblbd.com


121/2 Lutfar Rahman Lane North

South Road (2nd Floor),


Tel: (8802)7176745-7, 9558944 Fax:


E-Mail: bangshal@fsblbd.com


House # 38/1, Road # 02,

(Opposite Rifle Square)

Dhanmondi R/A,


Tel: (8802) 9670975, 9670976

Fax: 880-2-9670977

E-Mail: dhanmondi@fsblbd.com


95, Mohakhali C/A,

Dhaka. Bangladesh

Tel: (8802)8852488, 9888046

Fax: 88-02-9886334

E-Mail: mohakhali@fsblbd.com


House # 793 (1st Floor)

Kazi Para, Begum Rokeya Sharani,

Mirpur, Dhaka. Bangladesh

Tel: (8802)8033664,Fax: 8033664

E-Mail: mirpur@fsblbd.com


Plot # 80, Block # B,

Kamal Ataturk Avenue

Banani Model Town,


Tel: (8802) 9892164, 9889754

Fax: 880-2 -8851140

E-Mail: banani@fsblbd.com



Bengal Centre

28, Topkhana Road, Dhaka,Bangladesh

Tel: (8802)9553593, 9553149,


Fax: 880-2-7161905

E-Mail: topkhana@fsblbd.com


Union: Mouchak, Mouza- Shafipur, P.

S- Kaliakoir, Dis. Gazipur

,Dhaka, Bangladesh. Tel:(88) 06822-

52134-35 (PABX), Fax: 88-06822-

52133 E-Mail:shafipur@fsblbd.com


First Security Islami Bank Ltd.

Plot # 9/i, Motijheel C/A

Dhaka City Corporation


Tel: 9570423, 9570531 Fax:


Mobile: 01191195024,



First Security Islami Bank Ltd.

65, MuktiJodda Road

Panna Plaza, Ajampur super



7911307-8 Fax: 7911309

Mobile: 01713375086

E-mail: azampur@fsiblbd.com


224, Maiddah Bashaboo,

P.S- Shabujbag, Dhaka.


Phone: (8802)7218020, 7218021

Fax: 880-2 -7218020

E-Mail: biswaroad@fsblbd.com


First Security Islami Bank Ltd.

16/A/3 (Ground & 1st floor)

Block # F ,Mohamadpur

Housing Estate Ring Road,

Mohammadpur, Dhaka.

Tel: 9133621,9118036 Fax:


Mobile: 01713043757,


E-mail: ringroad@fsiblbd.com


First Security Islami Bank Ltd.

Road # 2 Block # C

Eastern Housing Banashree Project

Rampura, Dhaka.

Tel: 7287394 Fax: 7287394

Mobile: 07175022150,


E-mail: banashree@fsiblbd.c


Plot No-454, Nayapara, Dhonia,



Tel: (8802)7553807

Fax: 880-2 -7553800

-Mail: dhonia@fsblbd.com


Auspara College Gate

Tongi, Gazipur.


Tel: (8802)9816212-3 (PABX),

Fax: 9880-2 -816211

E-Mail: collagegate@fsblbd.com


234/6 (1st Floor), Kachukhat.

P.S: Kafrul, Dhaka,Bangladesh

Tel: (8802)8714615

Fax: 880-2 – 8714614

E-Mail: senanibash@fsblbd.com


Kashipur, Madhabdi, Norsindi

Ph: 9446879, 9446878

Fax: 9446880

E-mail: madhabdi@fsiblbd.com


First Security Islami Bank Ltd.

P.O. Muksudpur, P.S. Dohar

Dist- Dhaka

Tel: 03-894450028, FAX: 03-


Mobile: 01713375082

mail: muksudpur@fsiblbd.com


Mabud Mension (2nd floor), Islampur

Road, Old Dhaka

Ph: 7392464, 01714453411

Email: Islampur@fsiblbd.com


Savar City Center, 2nd Floor,

Porasava: Savar, Dhaka

Ph: 7744657, 7744656

Fax: 7744658

Email: savar@fsiblbd.com

Date of Inaguration:26th Octover



First Security Islami Bank Ltd.

U.P- Shreepur

P.S-Shreepur, Gazipur.

Tel: 06825-51767 Fax: 06825-


Mobile: 01818027399,


E-mail: shreepur@fsiblbd.com


Yearpur Union, Ps: Ashulia, Savar,


Ph: 01713375034

E-mail: zirabo@fsiblbd.com

Date of Inaguration: 25th October2009


Brojalal Niketon, Holding No-62

(1st Floor), ChotoBazar,

Kotowali Model Thana,


Ph: 091-64043

Fax: 091-64033

E-mail: mymensing@fsiblbd.com


Holding No-15/A, Mojib Road, Word


Kotwalli, Faridpur

Ph: 0631-67166

Fax: 0631-67165

E-mail: faridpur@fsiblbd.com



142, Chand Miah Lane

Khatungonj, Chittagong,


Tel:(88) 031-620729, 031-619414

(PABX), 031-616850, 031-624844,

01819319965, 01711846086

Fax: (88)031-622702

E-Mail: khatungonj@fsblbd.com



Keranihat, Satkania,



1281, Bayzid Bostami Road,

Probartak Sangha Turning

(Adjacent To Kollol Super Market),

Tel: (88)-01199708141,

Fax: (88)-03036-56566

E-Mail: keranihat@fsblbd.com

Tel:(88) 031-2570823,

Fax:(88) 031-2570825

E-Mail: nazumeahhat@fsblbd.com

Panchlaish, Chittagong Bangladesh.

Phone : (88)031-2552295, 031-2552786,

031-2552296 (PABX)

Fax: (88)031-2552785

E-Mail: probortakmor@fsblbd.com


365, Jubilee Road Chittagong Bangladesh

Tel: (88)031-627026, 031-2855734,

031-635658, 031-635664 (PABX)

Fax: (88)031-627024

E-Mail: jubileeroad@fsblbd.com


75, Hossen Court

Agrabad C/A, Agrabad,


Tel: (88)031-723863 (PABX),

031-2522099, 031-2514590

Fax: (88)031-716828

E-Mail: agrabad@fsblbd.com


First Security Islami Bank Limited

House # 10 (1st floor), Anderkillah

Road, Thana-Kotoyali, Chittagong.

Tel: 031-2858651-3 Fax: 031-


Mobile: 01912417513,01555432066

E-mail: anderkillah@fsiblbd.com


H Plaza, NagirHat, Fatikchari,


Ph: 01720060872

E-mail: nazirhat@fsiblbd.com


Holding No- 182/183, Lalchand

Road,Chittagong City Corp., Kotowali,


Ph: 01729097354

E-mail: Chawkbazar@fsiblbd.com

Cox’s bazar

Ph: 03432-58413

Fax: 03432-58414

E-mail: eidgoan@fsiblbd.com

Date of Inaguration: 12th

November 2009


First Security Islami Bank


940, Koral Reef Plaza.

Cox’s Bazar Main Road

Cox’s Bazar

Tel: 0341-51584 0341-51582 Fax:


Mobile: 01819332100, 01713375071

E-mail: coxsbazar@fsiblbd.com


First Security Islami Bank


Solaiman Tower (1st floor)

P.O+P.S- Hat Hazari,


Tel: 031-2601361-2 Fax: 031-


Mobile: 01818860651,


E-mail: hathazari@fsiblb.com


Hossain Building, Aracan Road,

Mohra (Kaptai Rasta Matha),

Chandgaon, Chittagong.

Ph: 031-2572006

Fax: 031-2572007

E-mail: mohra@fsiblbd.com


N.J. Complex, 1280, Shahid Sabur

Road, Patiya, Chittagong.

Ph: 01746060280, 01199708141

E-mail: patiya@fsiblbd.com

Date of Inaguration:23rd November



Nazu Meah Hat, Nur Ali Bari,

Hat Hazari,


Lohagara Branch:

Karnafuly City Complex, (1st floor)

P.O+P.S-Lohagara, Chittagong.

Ph: 03034-56591

Fax: 03034-56592

E-mail: lohagara@fsiblbd.com

Date of Inaguration: 22th October



R.S.Plot-1958 Dovashi Bazar

P.O- Chandraghona (Lichu


Chittagong, Bangladesh

Tel:(88) 01819968286,



E-Mail: dovashibazar@fsblbd.com


First Security Islami Bank


Noyapara, P.S- Rawjan,


Tel: 031-2572441 031-2572442

Fax: 031-2572443

Mobile: 01815825778,


E-mail: patherhat@fsiblbd.com


First Security Islami Bank


Rafat Mansion Kalabagan(1st


P.O- Ramgonj P.S- Ramgonj,


Tel: 03824-75112 ,03824-75115

Fax: 03824-75112

Mobile: 01191785920,


E-mail: ramgonj@fsiblbd.com


First Security Islami Bank


Al-Rahmat Shoping Complex

Chakaria, Cox’s Bazar.

Tel: 03422-56490 Fax: 03422-


Mobile: 01713375084,


E-mail: chakaria@fsiblbd.com


Amiruzzaman Sawdagor Market

(1st Floor) Moddha Gagra,

Razanagor, RanirHat, Rangunia,


Ph: 01744655655

E-mail: ranirhat@fsiblbd.com


440/504, Torab Arcade, Dhaka Trank

(D.T) Road,

Pahartali, Chittagong.

Ph: 031-2773041

Fax: 031-2773043

E-mail: Pahartali@fsiblbd.com


First Security Islami Bank


Court Bazar Shadar (1st floor)

P.O- Ratna Palong, P.S-Ukhiya,

Cox’s Bazar.

Tel: 03427-56151 Fax: 03437-


Mobile: 01713375078,


E-mail: courtbazar@fsiblbd.com


4070/4523, Bismillah Complex (1st

Floor) P.O&P.S- Chandgaon

Chittagong Bangladesh

Tel: (88)031-2571531-2,

Fax: (88)031-2571531

E-Mail: bohaddarhat@fsblbd.com


Aiyub Manson (1st floor) Chawk

Bazar, Comilla-3500

Ph: 081-64899, 081-61912

Fax: 081-73291

E-mail: comilla@fsiblbd.com

Date of Inaguration:8th

November 2009


Eid goan bus stand, P.O- Eid

goan P.S- Cox’s bazar


Holding No- 322 (1st & 2nd floor), SSK


Feni Model Town, Feni

Ph: 01711123436

E-mail: feni@fsiblbd.com



SalimMansion (1st Floor) Mendibagh C/A,

Biswa Road, Asian Highway, Sylhet


Tel: (88)0821-813101,

Fax: (88)0821-813102

E-Mail: sylhet@fsblbd.com



Haji Abdul Khalique Super Market

Natun Bazar, Rampasha Road

Biswanath, Sylhet Bangladesh

Tel: (88)03891188319,

Fax:(88) 08224-56014

E-Mail: biswanath@fsblbd.com


First Security Islami Bank Ltd.

Probaha 17



Tel: 0821723136

Fax: 723145

E-Mail: taltola@fsiblbd.com


First Security Islami Bank Ltd.

M/s. Moyen complex,

Holding # 640,641, Wayebs B88

West Amberkhana, Sylhet-3100

Tel: 0821-2832238, Fax: 0821-


Mobile: 01713375083 ,





Aziz Supper Market (1st

Floor) Station Road

(Nawabgonj Bazar),

Rangpur, Bangladesh.

Tel: (88)0521-61736,

Fax: (88)0521-61735

E-Mail: rangpur@fsblbd.com


61,Central Road (Saifur Rahman Road)

(1st Floor) P.O-& P.S- Moulovibazar

Moulovibazar , Bangladesh.


Fax:(88) 0861-63096

E-Mail: moulvibazar@fsblbd.com



First Security Islami Bank Ltd

Saheb Bazar Zero Point

P.O- Ghoramara, P.S- Boyalia,


Tel: 0721-775653, 0721-775654

Fax: 0721-775647

E-mail: rajshahi@fsiblbd.com


First Security Islami Bank Ltd.

Plot# 1717, Santahar Road

Baragola, Bogra.

Tel: 051-67623, 04476401313

Mobile: 01199473401,


Mobile: 01713375079,


E-mail: bogra@fsiblbd.com



First Security Islami Bank Ltd

Patuakhali Natun Bazar, Sadar


P.O- Patuakhali P.SPatuakhali.,


Tel: 0441-64287, 0441-64290

Fax: 0441-64290

Mobile: 01713375087,


E-mail: patuakhali@fsiblbd.com


Holding No- 463/464, Hemayet

Uddin Road,

Barishal City Corp., Kotawalli,


Ph: 0431-2177278

Fax: 0431-2177279

E-mail: barishal@fsiblbd.com

Date Of Inauguration: April 8,



First Security Islami Bank Ltd.

1st floor, Hazi Abdus Salam



Chatak, Sunamgonj

Mobile: 01711357689,




4.3 Organization Structure of IBBL:

Board of Directors of FSIBL:

4.3.1 There are given the name of Board of Directors in First Security Bank Limoted

4.4 Shariah Council of FSIBL:

For accomplishing real islami banking service to its customer FSIBL consist a high powered Shariah Board which comprises of islamic Scholars who ensure the shariah based service to the community. There are given the chart Shariah Board and also name of the members.

Sl# Name Position Address
1. Sheikh (Moulana) Mohammad Qutubuddin Chairman Baitush Sharaf Complex Shah Abdul Jabbar (R) Road Dhanialapara Chittagong-4100
2. Mufti Sayeed Ahmed


Vice Chairman Markaze Eshaete

2/2 Darus Salam Mirpur, Dhaka

3. Moulana Md. Shamaun Ali


Member Secretary 491, Wireless Railgate

Bara Moghbazar Dhaka-1217

4. Moulana Abdus Shaheed Naseem


Member 2/C Green Valley Apartment

493 Moghbazar Wireless Railgate Dhaka-1217

5. Janab Mohammad Azharul Islam


Member Room # 616, Sir P. J. Hortog International Hall,

University of Dhaka


Observers Members
Sl# Name Position Address
1 Alhaj Md. Abdul Maleque Vice Chairman, Board of Directors FSIBL &

Observer Member,

Shariah Council

8/A, OR Nizam Road Panchlaish R/A

Chittagong .

2 Prof. Md. Sharif Hussain


Board of Directors FSIBL

& Observer Member, Shariah Council

57, East Hajipara (5 th Floor) Rampura,


3 Prof. Dr. Muhammad Loqman


Board of Directors FSIBL & Observer Member, Shariah Council Road # 02,

House # 22/B

Dhanmondi R/A,


4 Mr. Shahidul Islam


Board of Directors FSIBL & Observer Member, Shariah Council Home# 7, Road# 1,

Nasirabad Housing Society, Post: Medical

Organ gram of FSIBL bank:

Flowchart 1: Organ gram of FSIBL

4.4.2 Designations of employees of the FSIBL

A. Executives of the Bank

1. Managing Director

2. Deputy Managing Director

3. Executive Vice president (EVP)

4. Senior Vice President (SVP)

5. Assistant Vice President (AVP)

B. Officials of the Bank

1. Senior Principal Officer

2. Principal Officer

3. Senior Officer

4. Officer

5. Assistant officer Grade -I

6. Assistant Officer Grade –II

7. Assistant Officer Grade –III

C. Sub Staffs of IBBL:

1. Messenger

2. Warehouse Guard

3. Driver

4. Cleaner

4.3 Management Efficiency

Senior Management

FSIB is functioning with professional management team headed by the Managing Director Mr. A. A. M. Zakaria. Among other senior executives currently two DMD, One Principle(Training Center), two SEVP, eleven SVP, ten VP, five FVP, twelve SAVP, five AVP and eight FAVP are discharging their services in progression of the banks business.

Managing Director

Mr. A. A. M. Zakaria, Managing Director of the bank is an eminent banking personality having long 30 years of experience in banking industry. After successful completion of his B.A. (Hons) M.A. in Economics from Dhaka University , Mr. A. A. M. Zakaria has started his banking career in 1977 as Senior Officer of Rupali Bank. Before the current responsibility, Mr. A. A. M. Zakaria was the Deputy Managing Director of Dutch-Bangla Bank Limited. In his multi-greeted banking service, Mr. A. A. M. Zakaria participated in many courses, training program and workshops on banking at home and abroad. Mr. A. A. M. Zakaria joined in FSIB in 7 th August 2005 as Managing Director in a crucial moment when the bank had fallen into Problem Bank with lots of great complex situations. Within a short span of time FSIB under his proper guidance recovered from the “Problem Bank”.

Top management of the bank is supported by human resource strength of 421 executives and officers. For smooth functioning of the Bank, following committees have been formed:

1. Management committee (MANCO) comprises of senior members of the management headed by Managing Director of the bank. All divisional heads are the member of the committee. MANCO meets on regular basis to discuss relevant agenda.

2. Asst Liability Management Committee (ALCO) headed by the Managing Director, is responsible for balance sheet risk management. The committee participate is the monthly ALCO meeting and review the liquidity position, review rate of interest on deposit and lending, and review the ALCO papers on presentation by treasury back office on the position of profit, deposit, advance, cost analysis, maturity bucket of deposit & advance, balance sheet, profit and loss account and many other issues relating to banks business and assets-liability management. Five relevant divisional heads including DMD are the members and FVP & Head of Treasury of the Bank is the member secretary of the committee

4.4 Human Resources Development

FSIB has a separate Human Resources Division (HRD) to manage the employee policies and practices. As on FYE 2009, Total 900 executives & officers of the bank have been working for smooth banking operations. Bank follows a standardized human resources policy. HRD of the Bank follow a transparent and free & fair system to ensure the standard recruitment, training & development of human resources of the bank. The bank has defined HR policies including recruitment, training & development, promotion, leave, transfer and disciplinary action policy. Usually internal recruitment procedures are considered to fill up the mid and top management positions, while entry-level positions are filled with regularly through competitive recruitment exams. They follow transparent, well-defined and strict rules for appointment of officers and staff in the Bank.

The tasks of Human Resource Management are given below:

i. Preparing human resource plan and maintaining data card for the employees of the bank.

ii. Preparing training and human resource development plan, programmer and formulating, reviewing and ensuring implementation of policies for promotion, job rotation, and disciplinary action.

iii. Formulating and ensuring implementation of policies for employee’s appraisal and performance rating. Maintenance of centralized service record and confidential reports up to grade level as may be determined form time to time. Periodical staff appraisal and formulating policies for skill development.

iv. Providing all support services for effective and meaningful training of bank’s employees. Preparation of retirement list, collecting of date from of all employees and officers and updating data cards. Maintenance and updating the human resource register officers and employees.

4.5 Corporate Governance

Corporate governance is about how corporation is running its operations to achieve its corporate objectives. Bangladesh Bank (BB) gives emphasis on implementing corporate governance among the financial institutions and to do that, BB emphasises implementation of the guidelines issued by them for improving corporate governance in banking. Good Corporate Governance practices enhance an entity’s corporate image and market credibility, which attract capital and increase its borrowing power. These can be reflected in the quality of financial reporting and disclosures; strength of internal control system and internal audit function induction of professionally competent, independent non-executive Directors on corporate Board; formation of Audit Committee; delegation of authority to executives and staff; protection of corporate governance for strengthening organizational strength. With a view to ensure effective participation and deep interest in the affairs of the company and as per Articles of Association of the Company and as per Bangladesh Bank Circular No. 16 dated March 24, 2003 the bank has set up the following 2 committees:

  1. Executive committee
  2. Audit Committee

4.5.1 Executive Committee:

FSIB has constituted 09 members executive committee of the board as per Bangladesh Bank guidelines to ensure corporate goverance in the business of which managing director of the Bank is Ex-officio Member. The executive committee of the board are responsible for developing policy and strategy for smooth operations of business and business development of the bank to ensure maximization of shareholders wealths protecting other stakeholders interest in the company Mr. Alhaj Md. Saiful Alam, Chairman of the board of Directors is the Chairman of the present Executive Committee of the bank. He is very dynamic person and leading the executive committee of the bank in a very manner.

4.5.2 Audit Committee:

FSIB has formulated an audit committee can play an effective role in formulating an efficient and secured banking system. The Audit Committee has been formed comprising three members of the Board of Directors. As per corporate governance guidelines the Chairman of the Audit Committee should have sound knowledge and expertise in finance & accounting or auditing. Mr. Hamidul Haq, who is also a Director of the Bank, is Convener of the committee. He is associated in banking field over long years.


First Security Islami Bank offers all types of modern, progressive and dynamic business product as well as banking services to the customers of all strata of society. All customers get 100% services from First Security Bank. First Security Bank has already 66 branches in different commercially important places all over the country. Now day’s First Security Bank offers online services.

First security Islami Bank Ltd. successfully marked its products designed to fulfill the needs of various socio-economic strata. Attractive feature of the products have given a distinctive image among the private banks. They has been continuous endeavor to offer new products and services. However , the Product & Services of the bank as following:

a.Deposit Products
Al-Wadiah Current Deposit
Mudarabah Savings Deposit
Mudarabah Short Term Deposit
Non-resident Foreign Currency Deposit
Resident Foreign Currency Deposit
b. Scheme
Mudarabah Monthly Savings Schemes
Mudarabah Monthly Benefit Deposit Schemes
Mudarabah Double Benefit Deposit Schemes

C . Investment / Deployment of Funds:

a. Bai-Murabaha (Deferred Lump Sum/ Installment Sale)

b. Bai-Muajjal (Deferred Installment / Lump Sum Sale)

c. Ijara (Leasing)

d. Musharaka (Joint-Venture Profit-Sharing)

e. Mudaraba (Trustee Profit-Sharing)

f. Bai-Salam (Advance Sale and Purchase)

g. Hire-Purchase

h. Direct Investments

i. Post Import Investment

j. Purchase and Negotiation of Export Bills

k. Inland Bills Purchased

l. Murabaha Import Bills

m. Bai-Muajjal Import Bills

n. Pre Shipment Investment

o. Quard-ul-Hasan (Benevolent Investment)

i. Letter of Guarantee:

a. Tender Guarantee

b. Performance Guarantee

c. Guarantee for Sub-Contracts

d. Shipping guarantee

e. Advance Payment guarantee

f. Guarantee in lieu of Security Deposits

g. Guarantee for exemption of Customs Duties

h. Others

d. Specialized Schemes

§ Consumer Investment Scheme,

§ SME Investment Scheme,

§ Lease Investment Scheme,

§ Hire Purchase,

§ Earnest Money Investment Scheme,

§ Mortgage Investment,

§ Employees House Building Scheme,

§ Payment of Utility Bills (Electricity, Water, Phone and Gas etc

e. Services

· Full Fledged Online Banking

· ATM Services

· SMS Banking


· Lockers

· Utility Bills