Major (Retd.) Dr. Md. Rezaul Haque
Board of Directors
Assalamu Alaikum Wa-Rahmatullah
It is my immense pleasure to take the opportunity on behalf of the Board of Directors of Social Islami Bank Limited to highlight some of our bank’s achievements and progress of the year 2014 to the viewers of our Web-Site. As a second generation Shariah-based Bank, the Social Islami Bank Limited was incorporated in the year 1995 under the profound leadership of the renowned economist--Professor Dr. M.A. Mannan--the founder chairman of the Bank in close cooperation and assistance from a group of Bangladeshi expatriates, local entrepreneurs, and foreign dignitaries of the Islamic World.
The objective of the Broad of SIBL is somewhat different from other Islamic and contemporary banks of the country. The operations of SIBL has been defined under a unique theme of three-sector banking model (I) Formal Sector, commensurate with Islamic Commercial Banking using modern technology; (II) Non-Formal Sector, based on a concept of empowering family through Micro Credit & Micro Enterprise Program; and (III) Voluntary Sector, inviting Social Capital Mobilization through Cash WAQF and others, with a firm conviction to work together for a caring society. Our vision is to minimize the poverty level in Bangladesh by extending our financial support to the marginal people. In this regard, the inherent concept and credence of “Working Together for a Caring Society” is always held high. To carry forward this commitment, the personnel of SIBL are imbued with the highest degree of enthusiasm, zeal and vigor to serve the society at large.
Bangladesh economy maintained the growth momentum registering a 6.1 percent growth of GDP in FY14. The growth of industrial sector was lower in FY14 compared to the preceding year partly due to unstable situation of the World economy, internal political problem of the country and uncertainty of the country’s economy. Moderate growth of agriculture sector along with satisfactory growth of services sector helped to achieve the 6.1 percent growth of the overall economy. During FY14, the average inflation showed an upward trend, mainly due to increase in food inflation although the nonfood inflation declined during the same period.
Products & Services
SIBL is looking forward to expand its area of operation from urban to rural by introducing new customized products and services that are tailored to different economic class of people of the society in order to bring the un-banked people into banking channels. During the year 2014, many Products and Services were invented by the bank. Enormous emphasis were given to create a technology based banking environment realizing the facts that spending on widespread technology would be an Investment to support our growth and accordingly our bank has been relentlessly pushing to popularize technology driven products and services.
We have successfully maintained our Capital Adequacy Ratio throughout the year 2014 and at the end of 2014
, CAR stood at 11.69%
(consolidated) as against 11.69%
in 2013 where the required CAR is 10% under BASEL-II capital accord. To face the challenges of BASEL-III, we have been ready to calculate and are ready to maintain buffer capital considering more risks. In this regard, many procedural changes have already taken place. Stress Testing exercises of the bank re¬affirms its position assuming acute to most distressing circumstances. The Stress test-results after a minor shock at the end of the 4th Quarter of 2014, the CAR stood 10.18 %
against 10.18 %
in 2013. Overall, the Bank has put an all-out effort to maintain and develop its major financial indicators.
To ensure sustainable and consistent growth, SIBL has developed sound risk management policies and framework as per Bangladesh Bank guidelines. All the risk management policies and frameworks were reviewed by the Board of Directors of SIBL during the year 2014. A Risk Management Committee (RMC) was formed consisting of 5 (five) members of the Board of Directors in 2013. Main objectives of the RMC to ensure proper and timeliness risk management in every sphere of the bank.
The concept of Green Banking has been emerged from global warming issue. Social Islami Bank Ltd. has declared to prefer eco-friendly business and energy efficient industries at the time of selecting Investment clients. Adoption of Green Banking Policy by the bank has been reducing paper-work to a great extent. More and more Green-Banking activities during the year 2014 have successfully been recorded. The Bangladesh Bank has honored SIBL and ranked it the “top ten banks in Bangladesh” In 2012.
Social Islami Bank Limited has given highest priority to develop and ensure corporate governance. SIBL strictly adhere to the compliance requirements of Bangladesh Bank relating to the Directors. Duties and responsibilities along with code of conducts of the Chairman, Directors, Managing Director, Company Secretary, Chief Financial Officer, Head of Internal Control & Compliance of Social Islami Bank limited are specifically defined by the Board of Directors of SIBL and all such personnel have singed under their own hand to abide by their code of conduct.
Corporate Social Responsibility
I am also pleased to inform that operations of 2014 were meaningful and memorable for many reasons. This year, Corporate Social Responsibility (CSR) activities of the Bank expended Taka 6.51 crore against Taka 5.32 crore in 2013 under Health, Education, Sports, Disaster Management and Environmental programs—mostly belonging to social utilities and reaffirm our commitment to help many sectors. Operating Expenses, Profit of Cash Waqf Fund, Compensation Fund, Doubtful Income and Zakat Fund are the main source of CSR activities of the bank.
SIBL Foundation Hospital and Diagnostic Center:
As part of Corporate Social Responsibility (CSR) and social commitment for the people, Social Islami Bank Limited established a highly modernized technology based Hospital and Diagnostic Center namely: SIBL Foundation Hospital and Diagnostic Center at Fattah Flaza at Green Road, Dhaka. The main Moto of the Hospital is to provide best services to the all sorts of people of the society as well as to the stakeholders of the Bank.
Major (Retd) Dr. Md. Rezaul Haque