Abstract:
Commercial banks are one of the key contributors in the economy of developing countries. They act as financial intermediaries by performing the function of mobilizing the funds from one group and lending the same to another while making a reasonable amount of profit after meeting the cost of fund. Banking sector in Bangladesh has been pursuing the policy of expansion and growth of branches. People and the government itself are very much dependent on the services provided by the 48 banks in the financial market. To know how well commercial banks perform actually, a report on Al-Arafah Islami Bank Ltd. is being taken. The banking practice of conventional banking and Islamic banking is highly different from the concept.
To make the report meaningful, data are collected from both primary and secondary sources. The main focus was the annual reports of Al- Arafah Islami Bank Limited. Besides this, informal conversation with clients and different books and journals had been taken to complete this report.
AIBL in its all transaction restricts interests and conducts its investments portfolio under 3 mechanisms viz; a) Bai-Mechanism, b) Leasing of Ijara Mechanism c) Share Mechanism. Al-Arafah Islami Bank Limited is committed to operate to the principles of Islamic Sharia.
The strong performance was contributed from its continuous growth in loans and deposits and good performance by Merchant Banking and Investment Division.
After analyzing the performance factors; basically the profitability and productivity, I suggested some point in my dissertation report.
