Operational Success of Islamic

Banking Branches & Windows

in Bangladesh
Group List

Name ID No
Tamanna Tasnim 21-009
Nabila Ahmad 21-013
Antor Shaha 21-055
Fahimur Rahman 21-093
Md.Najmul Hasan 21-097
Habiba Ferduse 21-119
Core Objectives

Measure the operational success of

Islamic banking windows and
branches run by conventional
banks and to see how they comply
with the Islamic Shariah
Specific Objectives
operational success in deposit and investment accounts

Measure past performance

Check Shariah Compliance

Check contribution in social developments

Compare performance of branches versus windows

Framework

Operational
Success

Quantitativ Qualitative
e Analysis Analysis
 Parameters

Deposit collection Aims and

Quantitative Qualitative objectives
Investment/Loan Shariah
Offerings Compliance

Liquidity Position Social welfare

Profit
Analysis of performance
Deposit collection performance 2015 (Branches)

2015 Deposit
5400 3.70%

5350 3.60%
3.50%
5300
3.40%
5250
3.30%
5200
3.20%
5150
3.10%
5100 3.00%
5050 2.90%
January - March April - June July - September October - December
Islamic Banking Branches Amount Islamic Banking Branches Percentage
Deposit collection performance 2016 (Branches)

2016 Deposit
5350 3.15%
3.10%
5300 3.05%
5250 3.00%
2.95%
5200 2.90%
2.85%
5150 2.80%
5100 2.75%
2.70%
5050 2.65%
January - March April - June July - September October - December
Islamic Banking Branches Amount Islamic Banking Branches Percentage
Deposit collection performance 2017 (Branches)

2017 Deposit
6200 3.00%

6000 2.95%
2.90%
5800
2.85%
5600 2.80%
5400 2.75%
2.70%
5200
2.65%
5000 2.60%
4800 2.55%
January - March April - June July - September October - December
Islamic Banking Branches Amount Islamic Banking Branches Percentage
Deposit collection performance 2015 (Windows)

2015 DEPOSIT
3000 1.78%
2900 1.76%
2800 1.74%
2700 1.72%
2600 1.70%
2500 1.68%
2400 1.66%
2300 1.64%
2200 1.62%
January - March April - June July - September October - December
Islamic Banking Windows Amount Islamic Banking Windows Percentage
Deposit collection performance 2016 (Windows)

2016 DEPOSIT
4000 1.95%
3500 1.90%
3000
1.85%
2500
1.80%
2000
1.75%
1500
1.70%
1000
500 1.65%

0 1.60%
January - March April - June July - September October - December
Islamic Banking Windows Amount Islamic Banking Windows Percentage
Deposit collection performance 2017 (Windows)

2017 DEPOSIT
5000 2.30%
4500
4000 2.20%
3500
3000 2.10%
2500
2000 2.00%
1500
1000 1.90%
500
0 1.80%
January - March April - June July - September October - December
Islamic Banking Windows Amount Islamic Banking Windows Percentage
Performance regarding investment 2015 (branches)

2015 Investment
7000.00 5.00%
4.50%
6000.00
4.00%
5000.00 3.50%
4000.00 3.00%
2.50%
3000.00 2.00%
2000.00 1.50%
1.00%
1000.00
0.50%
0.00 0.00%
January - March April - June July - September October - December
Islamic Banking Branches Percentage of Total Investment Islamic Banking Branches Amount
Performance regarding investment 2016 (branches)

2016 Investment
6000.00 4.00%
3.50%
5000.00
3.00%
4000.00
2.50%
3000.00 2.00%
1.50%
2000.00
1.00%
1000.00
0.50%
0.00 0.00%
January - March April - June July - September October - December
Islamic Banking Branches Percentage of Total Investment Islamic Banking Branches Amount
Performance regarding investment 2017 (branches)

2017 Investment
5800.00 2.90%
5600.00 2.85%
5400.00
2.80%
5200.00
2.75%
5000.00
2.70%
4800.00
4600.00 2.65%

4400.00 2.60%
January - March April - June July - September October - December
Islamic Banking Branches Percentage of Total Investment Islamic Banking Branches Amount
Performance regarding investment 2015 (windows)

2015 Investment
2100.00 1.60%
2050.00 1.40%
2000.00 1.20%
1950.00 1.00%
1900.00 0.80%
1850.00 0.60%
1800.00 0.40%
1750.00 0.20%
1700.00 0.00%
January - March April - June July - September October - December
Islamic Banking Windows Amount Islamic Banking Windows Percentage of Total Investment
Performance regarding investment 2016 (windows)

2016 Investment
3500.00 1.80%

3000.00 1.75%

2500.00 1.70%

2000.00 1.65%

1500.00 1.60%

1000.00 1.55%

500.00 1.50%

0.00 1.45%
January - March April - June July - September October - December
Islamic Banking Windows Amount Islamic Banking Windows Percentage of Total Investment
Performance regarding investment 2017 (windows)

2017 Investment
4500.00 2.15%
4000.00 2.10%
3500.00 2.05%
3000.00 2.00%
1.95%
2500.00
1.90%
2000.00
1.85%
1500.00 1.80%
1000.00 1.75%
500.00 1.70%
0.00 1.65%
January - March April - June July - September October - December
Islamic Banking Windows Amount Islamic Banking Windows Percentage of Total Investment
Performance regarding investment to deposit ratio

Investment to Deposit ratio

Branches Ratio Windows Ratio
140%

120%

100%

80%

60%

40%

20%

0%
Performance regarding investment to deposit ratio
(windows)

Deposit and Investment made by Windows

Windows Total Deposit Windows Total Investment
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Performance regarding investment to deposit ratio
(branches)

Deposit and Investment made by Branches

Branches Total Deposit Branches Total Investment
7000.00

6000.00

5000.00

4000.00

3000.00

2000.00

1000.00

0.00
Performance regarding liquidity surplus or deficit

Liquidity position
Liquidity Surplus(+)/Deficit(-) Branches Liquidity Surplus(+)/Deficit(-) Windows
1243.3

1062.5
978

856
795.4
727.8

699.4

689.3
686.8

738
542.5

512.9

503.1
481.4

472.5

443.7
432.2
381.4

372.3

300.2
283.3
277.7

265.8

190.1
Performance regarding liquidity surplus or deficit

Liquidity, Deposit and Investment relation for Branches

1,400.00 140%

1,200.00 120%

1,000.00 100%

800.00 80%

600.00 60%

400.00 40%

200.00 20%

0.00 0%
Branches liquidity Branches I/D
Findings

The amounts of deposit collection by the Islamic banking branches were very fluctuating.

The percentage of deposit collected by Islamic banking branches were always falling since
2015.

The amount of deposit collection by windows was increasing since 2015 and in 2017 it
shores up to 4692 core taka.

Deposit collected by Islamic banking windows were always escalating since 2015 and
mounted up to 2.19% at the end of 2017.

windows have outperformed the Islamic banking branches. As windows have more direct
contacts with the clients.
Findings

Islamic banking windows investment to deposit ratio never exceeded 100% which shows their
discipline

Islamic banking windows maintained more discipline in making investment compared to

branches.

The Islamic banking branches performed spectacularly in investment making on 2015.

However they couldn’t keep the pace afterwards

The Islamic banking windows have outperformed the Islamic branches in terms of investments

Lack of sufficient deposit collection should be blamed for the failure of the Islamic banking branches.
Findings

Branches had a trend of reducing their liquidity surplus at the end of each year. But in 2017 it
happened throughout that year.

In the 3rd quarter of 2016 and the last quarter of 2017 the liquidity surplus was very high

Both branches and Windows fulfilling social welfare goals by offering investment products.

Shariah compliance is maintained as directed by Central Bank

 Conclusion

Factors of analysis Islamic banking branches Islamic banking windows

Deposit collection Not successful Successful

Making investment Not successful Successful

Investment to deposit ratio Slightly indiscipline Discipline

Liquidity maintenance Successful Less successful

Profit Successful Successful