Islami Banking

Islami Banking

Islam is the complete code of life. It has rules and guidelines for every section of individual, social, national and international life and these guidelines are perpetual. It addresses human problems by divine solutions. Economics is an integral part of human life for which Islam gives unique guidelines. Islamic banking is an essential part of Islamic Economy. Principles of Islamic Shariah are the main guideline of Islami Banking. It avoids charging or giving interests in all its operations and aims at welfare-based banking.

To provide Islamic Banking service to the valued clients with the latest Islamic banking products, AB Bank opened it’s first “Islami banking Branch” on 23rd December 2004. The branch is now located at 82, Kakrail, Ramna, Dhaka. The branch is being operated duly complying with the principles of Islamic Shariah and the guidelines of Islamic Banking, given by Bangladesh Bank, the central bank of the country as well as follow the standard rules & procedures of banking both at home and abroad and other operational procedures of the Bank.

The branch has been running its business under active guidance of a competent Shariah Supervisory Committee consisting of Islamic scholars, Ulema, Fukaha and Islamic Bankers headed by Janab M. Azizul Huq prominent Islamic banker & founder CEO of Islami Bank Bangladesh Ltd. the first Islamic Bank of South-East Asia. A dedicated team of experienced Islamic bankers has been working under his prudent guidance. We are also a member of Islamic Banks Consultative Forum (IBCF) and Central Shariah Board for Islamic Banks of Bangladesh.

Funds related to Islami Banking Branch is kept totally separate from conventional operation maintaining separate books of accounts. We also maintain separate Al-Wadiah Current Account with Bangladesh Bank to manage long term and short term funds. In brief AB’s Islamic banking operation is completely based on Islamic Shariah, free from Riba(interest) and separate from it’s conventional operation.

AB Bank Islami Banking has been trying to provide excellent banking services to the valued client complying with the Shariah rules and banking norms. Day by day our business volume has been increasing which has strengthened us to provide competitive profit to the valued depositors as well as attractive investment facilities for the investment client.

For our Islamic banking operation following basic principles of Islamic banking is being followed:

  • Prohibition of Riba(Interest): Receipt and payment of interest is totally prohibited in Islamic banking.
  • Money as “Potential” capital: Money is not a commodity, but a medium of exchange, a store of value and a unit of measurement. Money represents purchasing power and cannot be utilized to increase the purchasing power without any productive activity. Islamic finance advocates the creation of wealth through real economic activities.
  • Risk Sharing: Because interest is prohibited, suppliers of funds become investors, rather than creditors. So, business relevant parties share business risk.
  • Prohibition of Speculative Behavior: Islamic finance discourages hoarding and prohibits transactions featuring extreme uncertainties (Gharar) and gambling (Mysir).
  • Sanctity of Contract: Islamic finance upholds contractual obligations and the disclosure of information as a sacred duty. This feature is intended to reduce the risk of asymmetric information and moral hazard.
  • Shariah approved Activities: Only those business activities that do not violate the rules of the Shariah qualify for investment. For example, any investment in a business dealing with alcohol, gambling, tobacco is prohibited.
  • Social Justice: Any transaction leading to injustice and exploitation is prohibited.

Islamic Banking Products


Fund which is deposited with banks by the depositors with clear permission to utilize/invest the same is called Al-Wadeeah...

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Mudarabah is a partnership between the fund provider and the user. Depositor here provides fund and the bank does business...

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Investment Services

AB Bank Islamic Banking wing provides investment facilities for project finance, working capital finance, SME finance, consumer / retail baking finance etc...

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