In comparison with the Sharia-based banks, Islami branches of conventional banks are doing better business. These banks have recorded double deposits compared to other banks. Consequently, loan disbursement has also risen, says a Bangladesh Bank report.
While deposit at general banks has not registered a 10 percent rise till June this year, the deposit at Islamic sections of conventional banks rose by 28.22.
Till June this year, the deposit of Shariah-based banks rose by 11.80 percent.
Researcher of Bangladesh Institute for Development Studies (BIDS) Dr Zaid Bakht, said: “Since interest rate fell at conventional banking system, people are tilting towards Islamic windows.”
Loan disbursement at the Islamic sections of conventional banks also rose by 24.87 percent whereas for conventional banks the growth figure was 20.91 percent.
Till June this year, loan disbursement for Shariah-based banks increased by only 12.57 percent.
At present, 8 banks are running Islamic banking operations in the country.
As per Bangladesh Bank, the total deposit of banks involved in Islamic banking is Tk 2,530.58 billion. This was Tk 2,247.56 billion last year.
Over the last quarter, the April-June report of Bangladesh Bank shows that till June, the aggregate distributed loan was Tk 10,645.36 billion and of this, Shariah-based banks accounted for Tk 2,451.88 billion.
The fully Islamic banks are Islamic Bank Bangladesh, Al Arafah Islami Bank, First Securities Islami Bank, ICB Islamic Bank, Shahjalal Islamic Bank, EXIM Bank, Social Islamic Bank and Union Bank. Conventional banks with Islamic sections are City Bank, AB Bank, Dhaka Bank, Premier Bank, Prime Bank, Southeast Bank, Jamuna Bank, Bank Al Falah and HSBC.
Sonali, Janata, Agrani, pubali, Trust Bank, Standard Bank, Bank Asia and Standard Chartered Bank have Islamic windows.