General idea about investment of Al-Arafah Islami Bank Limited

Abstract

This report is prepared as requirement of the internship of BBA program of BRAC University. This report focuses Three months working experiences in Gulshan Branch of Al-Arafah Islami Bank Limited. This report will give a clear idea about activities and operational strategies of (AIBL). This report focuses on “General Idea About Investment”of AIBL. Especially this report focuses on mode of investment, loan and non-performing loan of AIBL. Al-Arafah Islami Bank Limited (AIBL) was established in September’27, 1995 with a clear manifesto of demonstrating the operational meanings of participatory economy, banking and financial activities as an integral part of an Islamic code of life. The philosophy of Al-Arafah Islami Bank Limited is to establish as egalitarian society based on the principle of social justice and equity. As an integral part of this process Al-Arafah Islami Bank introduced measures to abolish interest and charge or pay fixed interest on loans or deposits. Interest of pre determined interest on deposits; the depositors participate in the profit of the bank as an agreed ratio. Whereas, interest based conventional banks pay a fixed interest on savings and time deposits and grant loans with interest for any purpose. Basically AIBL is an Islamic Bank based on “ISLAMIC SHARIAH”. It follows the alternative concept of Al-Arafah Islamic Banking. Which represents unique human approach to credit and banking based on profit-oriented economy devoid of interest, in this regard AIBL has introduced a number of income generating programs for the millions of urban and rural poor. With the objective in view AIBL has formulated a profitable live in a batter society with greater security and peace. AIBL is opening in a three sectors banking system, such as formal, non-formal and voluntary sector. General banking, Investment and foreign exchange are operated under the formal sector. Development management of Waqf and mosque properties, management of in heritance properties, and joint venture project for management of non-profit foundations, charitable trusts and organizations are executed under the voluntary sector.