Sibl Ar-2020

ANNUAL REPORT 2020 | 1
CONTENTS
STANDARD DISCLOSURE CHECKLIST 6 MANAGEMENT & COMMITTEES
LETTER OF TRANSMITTAL 10 1. Management Committee (MANCOM) 44
NOTICE OF THE 26 ANNUAL GENERAL MEETING
TH
11 2. Management Team 44
3. Asset Liability Committee (ALCO) 45
OVERVIEW 4. Investment Committee 45
1. Our Vision, Our Mission, Our Commitments 12 5. SIBL Integrity Committee 45
2. Our Strategic Objectives 13 6. Senior Management Team 46
3. SIBL Core Values 14 7. Status of compliance regarding Appointment
4. Code Of Conduct & Ethical Principles 15 of chief financial Officer & chief information 48
Technology officer
5. Corporate Profile 17
6. Milestones 18
SHAREHOLDERS’ WEALTH
7. Sponsors Of SIBL 20
1. Capital (Paid-up) Pattern of SIBL 50
8. Functions of Social Islami Bank Limited 21
2. Pattern of Shareholding 51
9. Products and Services 22
3. Holding in 2020 51
10. Media Accolade 24
4. Shares held by the Directors 52
5. Financial Calendar 52
BOARD AND COMMITTEES
1. Board of Directors 27
2. Directors’ Profile 28
3. Executive Committee 41
4. Board Audit Committee 41
5. Board’s Risk Management Committee 41
6. Shariah Supervisory Committee 42
2 | SOCIAL ISLAMI BANK LIMITED

ANALYSIS & VALUE ADDED STATEMENTS REPORT ON RISK MANAGEMENT 170
1. Performance of the Bank 54
2. SIBL at a Glance 55 Market Disclosure under Pillar-III of BASEL-III 179
3. Graphical Presentation of SIBL 56
4. Reports & statements of value addition and its distributions 59 SUSTAINABILITY PERFORMANCE 200
5. Value Added Statement 59
6. Distributions Of Value Addition 60 REPORT OF THE SHARIAH SUPERVISORY
7. Distribution Of Dividend And Retained By The Entity 60 216
COMMITTEE
8. Economic Value Added (EVA) Statement 61
9. Market Value Added (MVA) Statement 61 NEWS AND EVENTS 218
10. Five-Step DuPont analysis 62
FINANCIAL STATEMENTS
MESSAGE FROM THE CHAIRMAN 63
Auditors’ report and financial statements to the
MESSAGE FROM THE DESK OF THE MANAGING 236
67 Shareholders of Social Islami Bank Limited
DIRECTOR & CEO
BRANCH NETWORK 367

REPORT & ANALYSIS
1. Management Report & Analysis 72
FORM OF PROXY 383
2. Business Analysis 79
3. Report on Internal Control System 83
DIRECTORS’ REPORT 85
1. Corporate Governance 130
2. Declaration By The Chief Executive Officer &
132
Chief Financial Officer To The Board
3. Information Related To Board & Its Directors 134
4. Compliance Report 148
5. Report on Going Concern 161
6. Report of the Board Audit Committee 165
7. Report on National Integrity Strategy 167
DIVIDEND DISTRIBUTION POLICY 169

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VERSES FROM THE
HOLY QURAN AND HADITH
IN THE NAME OF ALLAH, MOST GRACIOUS, MOST MERCIFUL
“..... That is because they say Trade is just like usury whereas,
Allah permitteth trading and forbideth usury.....”
-Surah Al-Baquarah,verse : 275
“…..Allah will destroy Riba (usuary) and will give increase for Sadaqaat and
Allah likes not the disbelievers, sinners…..”
“..... O you who believe! Be afraid of Allah and give up

what remains from Riba, if you are really believers…..”
“..... If you do not do it, then take a notice of war from Allah and his messenger; but if repent, you shall have
your capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with
unjustly (by receiving less than your capital sums).....”
“..... Verily never will Allah change the condition of a people until they
change it themselves (with their own souls).....”
-Surah Ar-ra’ad, verse : 11
“A man’s work ends upon his death except for three things
(a) contribution to knowledge (b) on-going charity and (c) faithful child”
- Al Hadith Muslim

STANDARD DISCLOSURE CHECKLIST TO THE KEY
SECTIONS OF THE ANNUAL REPORT 2020
ITEMS REMARKS
Corporate Objectives, Values & Structure Clarity and presentation:
Vision and Mission 12
Overall strategic objectives 13
Core values and code of conduct/ethical principles 14-16
Profile of the Company 17
Director’s profiles and their representation on Board of other companies &
27-40, 319
Organization Chart
Management Report/ Commentary and analysis including Director’s Report /
Chairman’s Review/CEO’s Review etc.
A general review of the performance of the company 54-55, 72-82
Description of the performance of the various activities / products / segments of
the company and its group companies during the period under review. (Weightage 97-129
to be given for pictorial / graphical / tabular presentations used for this purpose)
A brief summary of the Business and other Risks facing the organization and steps 109-111, 161-164, 170-178,
taken to effectively manage such risks 264-267
A general review of the future prospects/outlook. 82, 101, 207
Information on how the company contributed to its responsibilities towards the
117-120, 212-215
staff (including health & safety)
Information on company’s contribution to the national exchequer & to the economy 59-61, 108
Sustainability Reporting
Social Responsibility Initiatives ( CSR) 76, 126-128, 204-205
Environment related Initiatives 206-207
Environmental & Social Obligations 208-209
Integrated Reporting 210-211
Appropriateness of Disclosure of Accounting policies and General Disclosure
Disclosure of adequate and properly worded accounting policies relevant to assets,
252-269
liabilities, Income and expenditure in line with best reporting standards.
Any Specific accounting policies 225-269
Impairment of Assets 262 (Note 2.14)
Changes in accounting policies/Changes in accounting estimates 259 (Note 2.7)
Accounting policy on subsidiaries 259 (Note 2.5)

ITEMS REMARKS
Segment Information
• Comprehensive segment related information bifurcating Segment revenue,
segment results and segment capital employed
• Availability of information regarding different segments and units of the entity
as well as non-segmental entities/units
• Segment analysis of 108
• Segment Revenue
• Segment Results
• Turnover
• Operating profit
• Carrying amount of Net Segment assets
Financial Statements (Including Formats)
Disclosures of all contingencies and commitments 242, 247, 259, 304
Comprehensive related party disclosures 114, 319
Disclosures of Remuneration & Facilities provided to Directors & CEO 130, 243, 248, 319
Statement of Financial Position / Balance Sheet and relevant schedules 236-242, 246-247
Income Statement / Profit and Loss Account and relevant schedules 243, 248
Statement of Changes in Equity / Reserves & Surplus Schedule 245, 250
Disclosure of Types of Share Capital 296-297
Statement of Cash Flow 244, 249
Consolidated Financial Statement (CFS) 241-245
Extent of compliance with the core IAS/IFRS or equivalent National Standards 253-254
Disclosures / Contents of Notes to Accounts 252-320
Information about Corporate Governance
Board Of Directors, Chairman And CEO 27-40
Audit Committee (Composition, role, meetings, attendance, etc) Internal Control &
41, 165-166
Risk Management
Ethics And Compliance 15 - 16, 136-137
Remuneration and other Committees of Board 41-42, 140, 153
Human Capital 117-120, 212-215
Communication To Shareholders & Stakeholders
• Information available on website 50-52, 146
• Other information
Management Review And Responsibility 72-82
Disclosure by Board of Directors or Audit Committee on evaluation of quarterly
165-166
reports
Any other investor friendly information 18-19, 55, 72-82
Risk Management & Control Environment
Description of the Risk Management Framework 170-178
Risk Mitigation Methodology 174-176
Disclosure of Risk Reporting 170-198
Stakeholders Information
Distribution of shareholdering (Number of shares as well as category wise, e.g
50-52
Promoter group, FII etc)

ITEMS REMARKS
Shares held by Directors/Executives and relatives of Directors/Executives 131
Redressal of investors complaints 146
Graphical/ Pictorial Data:
Earnings per Share
Net Assets
Stock Performance 56-58, 78
Shareholders’ Funds
Return on Shareholders Fund
Horizontal/Vertical Analysis including following. 79
Operating Performance (Income Statement)
• Total Revenue
• Operating profit
• Profit Before Tax
• Profit after Tax
• EPS 79
Statement of Financial Position (Balance Sheet)
• Shareholders Fund
• Property Plant & Equipment
• Net Current Assets
• Long Term Liabilities/Current Liabilities
Profitability/Dividends/ Performance and Liquidity Ratios
Gross Profit Ratio
Earning before Interest, Depreciation and Tax
Price earning ratio 78-79
Current Ratios
Return on Capital Employed
Debt Equity Ratio
Statement of Value Added and Its Distribution
Government as Taxes
Shareholders as dividend
Employees as bonus/remuneration
59-61
Retained by the entity
Market share information of the Company’s product/services
Economic value added
Additional Disclosures
Sustainability development reporting 200-215
Human Resource Accounting 213
Report on Internal control system 83
Report on national integrity strategy 167
Report on going concern 161-164
Report on risk management 170-198
Report on shariah supervisory committee 216
5 Steps do point 62

ITEMS REMARKS
Specific Areas for Banking Sector
Disclosure of Ratings given by various rating agencies for Instruments issued by /of
114-115
Bank. For eg. FD, CD, Tier I perpetual Bonds
Details of Advances portfolio Classification wise as per the direction issued by the
279
central bank of the respective countries
Disclosure for Non Performing assets
Movements in NPA 187
Sector-wise breakup of NPA 283
Movement of Provisions made against NPA 292
Details of accounts restructured as per regulatory guidelines 285
Maturity Pattern of Key Assets and Liabilities (ALM) 251
Classification and valuation of investments as per regulatory guidelines/Accounting
275-279
Standards
Business Ratio/Information
Statutory Liquidity Reserve (Ratio) 271
Net interest income as a percentage of working funds / Operating cost - Efficiency
57
ratio
Return on Average Asset 80
Cost / Income ratio 58
Net Asset Value Per Share 58
Profit per employee (Operating profit/Per employee) 119
Capital Adequacy ratio 181
Operating profit as a percentage of working funds 56
Cash Reserve Ratio / Liquid Asset ratio 80
Dividend Cover ratio 78
Gross Non-Performing assets to gross advances / Non-Performing Loans (Assets)
70
to Total Loans (Assets
Details of credit concentration / Sector vise exposures 281
The break-up of ‘Provisions and contingencies’ included in the Profit and Loss
292
Account
Disclosure under regulatory guidelines 130-160, 179-198
Details of Non-Statutory investment portfolio 275
Disclosure in respect of assets given on operating & finance lease 291, 307, 310
Disclosures for derivative investments 357
Bank’s Network : List of Centers or Branches 366

LETTER OF TRANSMITTAL
All Shareholders of Social Islami Bank Limited

Bangladesh Bank (BB)
Registrar of Joint Stock Companies & Firms (RJSC)
Bangladesh Securities & Exchange Commission (BSEC)
Dhaka Stock Exchange Ltd. (DSE)
Chittagong Stock Exchange Ltd. (CSE)
Subject: Annual Report 2020 of Social Islami Bank Limited.
Muhtaram.
As-salamu Alikum Wa Rahmatullah,
Reference to the above, we enclose herewith the copy of Annual Report 2020 including Directors’ Report, Going Concern
Report, Corporate Governance Report and Internal Control System of Social Islami Bank Limited along with audited
consolidated and solo Financial Statements as at 31st December 2020. This report includes Income Statements, Balance
Sheet, Cash Flow Statements, Liquidity Statements, Statements of Changes in Equity and Notes to the Accounts thereon of
Social Islami Bank Limited as well as its subsidiaries namely SIBL Securities Limited and SIBL Investment Limited.
This is for your kind information and record, please.
Abdul Hannan Khan

Company Secretary

NOTICE OF THE
26TH ANNUAL GENERAL MEETING
Notice is hereby given that the 26th Annual General Meeting (AGM) of the Shareholders of Social Islami Bank Limited will be held virtually
by using digital platform through link https://sibl.bdvirtualagm.com (in pursuant with BSEC order SEC/SRMIC/94-231/91 dated March
31, 2021) on Tuesday, the 6th July, 2021 at 11:00 a.m. to transact the following business and adopt necessary resolutions:
AGENDA
1. To receive, consider and adopt the Directors’ Report and Audited Financial Statements of the Bank for the year ended December 31,
2020 together with the reports of the Auditors thereon;
2. To declare dividend for the year 2020 as recommended by the Board of Directors;
3. To elect Directors in accordance with the provisions of law and Articles of Association of the Company;
4. To appoint Auditors and fix their remuneration for the term until the next AGM; and
5. To appoint Compliance Auditors as per Corporate Governance Code (CGC) for the year 2021 and fix their remuneration.
By Order of the Board
Date: 14th June, 2021 (Abdul Hannan Khan)

Company Secretary
Notes:
a. The ‘Record Date’ was on Tuesday, the 1st June, 2021;
b. Shareholders whose names appeared in the Members Register of the Company or in the Depository Register on the ‘Record Date’
will be eligible to attend, vote in the 26th AGM and receive entitled dividend;
c. The 26th AGM of the Company would be conducted through Digital Platform in line with the order SEC/SRMIC/94-231/91 dated
March 31, 2021 of Bangladesh Securities and Exchange Commission (BSEC);
d. Details login process for attending the meeting will be available in the Company’s Website at www.siblbd.com;
e. A Member who is entitled to attend and Vote at the Annual General Meeting (AGM) can appoint a Proxy to attend and vote on his/her
behalf through Digital Platform. Forms of Proxy, duly stamped of Tk. 20/- (Taka twenty) only must be submitted at the Registered
Office of the Company at least 72 hours before the time fixed for the meeting;
f. The soft copy of the Annual Report-2020 of the Bank has already sent through e-mail address of the Members available in their
Owner (BO) accounts maintained with the Depository as per BSEC Notification No. BSEC/CMRRCD/2006-158/208/Admin/81 dated
20th June, 2018;
g. Depository Participant (DP)/ Stock brokers are requested to send the list of Margin loan holders having details information of the
Shareholders as per record date within 24th June, 2021; and
h. Annual Report along with Directors Report, Balance Sheet, Audited Financial Statements and Proxy Forms shall be available at the
Bank’s website (www.siblbd.com).
(N.B: No gift or benefit in cash or kind other than in the form of Cash or Stock dividend shall be paid /offered to the holders of
equity securities at the time of AGM as per BSEC Circular No.SEC/CMMRCD/2009-193/154 dated 24.10.2013).

OUR VISION OUR MISSION OUR
Working together for • Establishing three sector COMMITMENTS
a caring society. banking model
• To the shariah
• Transformation to a service
• To the regulators
oriented technology driven
profit-earning bank. • To the shareholders
• Fast, accurate and satisfactory • To the nation

customer service. • To the customers
• Balanced & sustainable • To the employees

growth strategy.
• To the other stakeholders
• Optimum return on
• To the environment.
shareholders’ equity.
• Introducing innovation islamic

banking products.
• Attract and retain high quality

human resources.
• Empowering real poor families

and creating local income
opportunities.
• Providing support for social

benefit organizations by way
of mobilizing funds and social
services.

OUR STRATEGIC OBJECTIVES
Transformation into
a service-oriented
technology-driven profit Ensure fast, accurate and
earning bank. best-in-class customer
Ensure Green services with customers’
Banking satisfaction.
Balanced and sustainable

growth strategy. Optimum
return on shareholders’
equity.
Ensure best CSR
OUR
(Corporate Social
Responsibilities) practices
Introducing
STRATEGIC innovative Islamic

Banking Products.
OBJECTIVES
Attract, motivate
To invest in the priority and retain high
sector for the overall quality human
economic development resources.
To achieve global
standards in Islamic Empowering real poor
Banking families and create local
income opportunities.
Providing support
for social benefit
organizations-by way
of mobilizing funds and
social services

SIBL CORE VALUES

CODE OF CONDUCT & ETHICAL PRINCIPLES
ETHICAL PRINCIPLES OF SIBL Relations with public organizations, regulators and other
institutions – the bank, during its relations with the public
Objectivity – the bank shall possess strict principle of organizations, regulators and other institutions, should act
objectivity in its day to day banking operations in relation to in observance of the principles of honesty, accountability
its customers, employees, shareholders, other banks, other and transparency, and should show the utmost care for
organizations by maintaining and protecting the stability the correct, complete and timely communication of the
and trust in the banking sector. information, documents and records in accordance with
the laws and regulations of the country.
Just and Equitable – the bank shall have no discrimination
and avoid all forms of bias in its attitudes towards Personnel Behaviors – the bank shall avoid all kinds
employees as well as to its customers. of practices and applications that may cause unfair
competition on the employment of the personnel.
Honesty – the bank during its operations shall stick to
the honesty principle in relation to customers, employees, Competition – the bank shall take appropriate measures to
shareholders, other banks, regulators and the stakeholders. take the challenges of industrial competition in compliance
with the laws and regulations. During the SIBL’s actions to
Impartiality – the bank is impartial towards its customers defeat the competitive forces- all of its activities within the
irrespective of their nationality, religion, financial and social free market economy shall avoid any unfair means which
standing, and gender during banking service. may cause indiscipline in the economy or industry or may
Reliability – the bank shall offer clear, comprehensible and be termed as immoral or unjustified behavior or is against
correct information to its customers within the principle the principles of integrity. All actions against competition
of reciprocal trust during services and transactions; and shall rather aim to (i) overall development of the financial
provide the customer services in a timely and complete sectors (ii) develop public trust on overall banking
manner. operations (iii) observe the common interest of banks.
Transparency – the bank shall inform its customers in an Advertisements and Announcements – SIBL shall
open, easily understandable and clear way regarding the act honestly, realistically, and in compliance with legal
underlying rights and responsibilities, benefits and risks regulations and with the general moral principles during
attached to the products and services offered to them. its announcements, advertisements and notices under
the publicity and advertising activities regarding products
Observing Social Benefit and Respect to Environment and services as well as its financial structures. The bank
– the bank shall show due diligence to support all kinds shall avoid all acts and behaviours that may damage the
of social and cultural activities in the light of the principle reputation of the banking as a profession. The bank shall
of observing, aside from the profitability, the social benefit also ensure that the announcements, advertisements and
and respect to the environment. notices do not contain any statements or expressions
degrading or humiliating other banks, or the products and
Fighting against money laundering – the bank has a policy services of other banks.
to fight against corruption and money laundering etc. as a
significant principle as stipulated by international norms Customer Complaints – SIBL shall establish a system in
and the provisions of national laws and regulations. The order to respond all and any kinds of questions of their
bank shall take appropriate measures to discharges duties customers stemming from the services offered and shall
by the employees with utmost due care and caution to fight accordingly inform to customers about this system.
against accumulation of crime originated assets.
Security – SIBL shall recognize the concept of “Security”
Insider Trading – the bank has a clear policy and takes all that includes all measures towards the protection of all
measures in order to prevent the use of insider information and any service mediums of the bank in banking sector
for the trading purposes. including technical hazards in the services offered to the
customers.

General Employee Qualities – the bank shall be aware • Not to use the bank’s assets and resources
that it shows due diligence in order to ensure that the unproductively and outside the designated purpose,
employees of the bank possess knowledge, background • Not to derive any personal benefits both from their own
and a sense of responsibility required by jobs. job potentials and from potentials of their customers
Employment and Career Development – the bank shall in by using their positions and titles,
line with the principle of managing the human resources in • To refuse all such benefit offers immediately and to
the best possible way, offer trainings, courses, seminars inform such offers to the competent authorities and
and similar opportunities to their employees in order to to their superiors,
ensure that they reach to the level necessitated by the time • Not to be involved in relations with the customers such
and by the banking profession. as borrowing-lending, being guarantor and opening
Working Environment – The bank shall introduce internal common accounts with the customers which do not
regulations requiring that its employees look neat and correspond with ethical principles,
clean in conformity with the reputation of the banking • Not to accept presents from the current or potential
profession and are also provided with a good congenial customers, other than those presents accepted by the
working environment. bank personnel under the established practices in the
bank,
Job Descriptions – The bank shall maintain and update
a detailed job description to distribute its jobs among the • To be aware of one’s accountability regarding the
employees so that the bank can show due diligence for the duties assumed during the performance of the
employment of sufficient number of personnel required by services,
the workload, organize the employees in a way that they • Not to assume any position in any private and public
yield maximum productivity during the working hours, and organization other than associations, foundations,
show utmost efforts for preventing overtime work and that cooperatives, and similar organizations without the
the employees use their annual leaves regularly. approval of the bank.
CODE OF CONDUCT FOR THE EMPLOYEES

• Adhere to the shariah principles.
• Adhere to the disciplinary measures of the bank.
• Adhere to applicable laws and regulations during
performance of duties,Inform the customers about
the benefits and risks of the products and services
offered to them,
• Offer unbiased and fair service to the customers
receiving the same services,
• Not to disclose the secrets of their customers and
the banks which they come to learn by virtue of
their positions and titles to anyone other than those
persons and authorities who are explicitly authorized
under laws,
• Not to cause any loss of reputation of the bank during
works and attitudes,
• Not to be engaged in any activity that can be classified
as personal business.
• Not to behave in contradiction to the principles
of justice, integrity, honesty, reliability and social
responsibility,
• To cooperate with other employees for common
purposes through building a courteous and diligent
communication during their fulfilment of duties,

CORPORATE PROFILE
Social Islami Bank Limited (SIBL) was established in the year 1995 as a public limited company which is engaged in Shariah
based commercial banking in the country and its modus-operandi are substantially different from other conventional banks.
This is the second-generation pioneer Islamic Bank in this country to introduce online banking facilities to its customers.
Name of the Company Business Identification No.

Social Islami Bank Limited 000302065
Registered Office Authorized Capital

City Center, Level 19, 20, 21, 22, 28 & 29 Taka 30,000,000,000
90/1 Motijheel C/A, Dhaka-1000
Phone : +88-09612001122 (PABX) Paid up Capital
FAX : 88-02-9568098 Taka 9,380,084,230
Email : info@sibl-bd.com
Website : www.siblbd.com Number of Shares:
SWIFT : SOIVBDDH 938,008,423
Chairman Investors’ Inquiry:

Prof. Md. Anwarul Azim Arif Share Department
City Center, Mezzanine-2
Managing Director & CEO 90/1 Motijheel C/A, Dhaka-1000
Mr. Quazi Osman Ali PABX: 88 02 09612001122 (50431)
Phone: 9571852
Company Secretary
Mr. Abdul Hannan Khan Number of Employees:
3100 (three thousand one hundred)
Chief Risk Officer
Mr. Muhammed Mizanul Kabir Number of Branches:
168 (One Hundred Sixty Eight)
Chief Financial Officer
Mr. Walid Mahmud Sobhani, FCMA For Offshore Banking:
Off Shore Banking Department
Chief Compliance Officer City Center, Level-19
Mr. Giash Uddin Bhuiyan 90/1 Motijheel C/A, Dhaka-1000
Auditors For SIBL Securities Limited (a subsidiary of SIBL):

Hoda Vasi Chowdhury & Co Chief Executive Officer
Chartered Accountants 3rd floor, 15 Dilkusha C/A, Dhaka-1000
Bangladesh Textile Mills Corporation Bhaban
7-9 Kawran Bazar Rd, Dhaka 1217 For SIBL Investment Limited (a subsidiary of SIBL):
City Center, 90/1 Motijheel C/A, Dhaka-1000
Shafiq Basak & Co.
Chartered Accountants Listing Status:
Shatabdi Centre (6th Floor) 292 DSE (Dhaka Stock Exchange)
Inner Circular Road, Fakirapool Symbol: SIBL | Listing Date: 18.11.2000
Motijheel, Dhaka
CSE (Chittagong Stock Exchange)
Credit Rating Agency Symbol: SIBL | Listing Date: 04.10.2005
Emerging Credit Rating Ltd.
Legal Form Market Price as on 31.12.2020
Public Limited Company DSE: Taka 13.00, Category A
CSE: Taka 12.90, Category A
Company Registration No.
C-28763(44)/95
Bank’s License No.

DBOD(D):200/60-943/95
Tax Payer Identification No.

144050147394

MILESTONE
2010
• Opening of 50th Branch
• Formation of Subsidiary
1995 2004 Companies
• Incorporation Date • Online Banking Facilities a) SIBL Securities Ltd
Introduced b) SIBL Investment Ltd.
• Certificate of
Commencement of Business 2005 • Agreement with VISA
• Formal Inauguration • Listing with Chittagong Stock • Introducing Core Banking
• Starting of 1st Branch Exchange Software
2000 2007 2011

• Initial Public Offering (IPO) • 1st Right Share • Introducing Concurrent Audit
System
• Listing with Dhaka Stock 2008
Exchange • 3rd Right Share
• Launching of remittance
service • Opening of 75th branch
(Bashundhara)
2009 • Introducing Green Banking
• 2nd Right Share Window
Introduction of School
Banking

2015
• Issuance of Mudaraba 2019
Subordinated Bond
• Introduction of Sub Branches
• Introduction of Agent Banking
• Opening of 161st Branch
2012 2016
• Own Corporate Head Office at • Opening of 125th Branch
City Centre (Corporate Branch)
• Launching of Offshore
Banking Unit 2017
• Launching of Internet Banking • Opening of 138th Branch
2014 2018 2020

• 6,25,000 nos. of Deposit • Launching Internet Banking • Launching Call Center
Accounts (SIBL Now)
• Introducing e-account service
• 49,000 nos. of Investment • International Rating from
• Opening of 168th branch
Accounts Moodys
• Opening of 100th Branch • Opening of 155th Branch
(Kankirhat

SPONSORS OF SIBL
1. Late Prof.Dr. M. A. Mannan, MA (Econ) (Michigan), Ph.D. (Michigan) (USA) Certificate in Economic Dev (USA )
2. Major Dr. Md. Rezaul Haque (Retd.)
3. Dr. Md. Jahangir Hossain
4. Late Mohammad Ibrahim Miyan
5. Late Md. Abdul Malek
6. Fountain (Pvt.)Ltd.
7. Bangladesh Social Peace Foundation
8. Dr. J. H. Gazi.
9. Mr. M. Nurul Amin
10. Mr. Md. Shah Alam
11. Alhaj Sultan Mahmood Chowdhury
12. Alhaj Mohammad Nesaruddin.
13. Late Abdul Awal Patwary
14. Mr. Md. Anisul Hoque, Representing Hamdard
Laboratories (Waqf) Bangladesh
15. Mrs. Nargis Mannan, B.A.(Hons), M.A.(DU)
16. Mrs. Fatema Begum
17. Mrs. Shamsunnahar Begum
18. Mrs. Zohra Alam
19. Islam Import & Export Associate Ltd.
20. Al-Haj Nasiruddin
21. Mr. Kamal Uddin Ahmed
22. Mr. Ahmed Akbar Sobhan
23. Mrs. Hasina Iqbal
24. Al-Haj Sk. Mohammad Rabban Ali
25. Alhaj Mohammad Aynul Haque
26. Mr. Mohammad Azam
27. Mr. Md. Aminuddin
28. Dr. Reshmi Mannan Siddique, B.sc. (Econ.), (Lse), U.KM.Sc. (Oxon.), M.S. (NY), Ph.D. (Ohio) (U.S.A.)
29. Dr. Ghalib Mannan, M.B.B.Ch. (Wales) (U.K.), M.D (U.S.A.)
30. Mr. Sadat Sobhan
31. Alhaj S.N. Haque

FUNCTIONS OF SOCIAL ISLAMI BANK LIMITED
01
Deposit Procurement
& management
under shariah
02
Financial Services
i.e. Letter of Guarantee,
Money Transfer
03
Investment using Islamic
Financial Contract
04
Corporate Social
Responsibilities (CSR)

PRODUCTS &
SERVICES
DEPOSIT PRODUCTS • Mudaraba Deposit Pension Scheme

» Mudaraba Special Deposit Pension Scheme
• Al-Wadeeah Current Deposit (Awcd) Account » Sonali Din
• Mudaraba Savings Deposit Account » Shukher Thikana
• Mudaraba Super Savings Account » Suborno Rekha
• Mudaraba. Notice Deposit Account » Shobuj Shayanho
• Mudaraba Term Deposit Account » SIBL Super DPS
» 1 Month
» 2 Month • Mudaraba Hajj Scheme
» 3 Month » Kafela
» 100 Days
» 4 Month • Mudaraba Lakhopoti, Millionaire & Kotipoti Scheme
» 6 Month » Shopner Shiri (Lakhopoti)
» 200 Days » Suborno Digonto (Millionaire)
» 12 Month » Shorno Shikhor (Kotipoti)
» 2 Years
» 3 Years • Other Schemes
» Mudaraba Zakat Savings Scheme
• Mudaraba Monthly Profit Deposit Scheme » SIBL Youngster Account
» Mudaraba Monthly Profit Deposit Scheme(3 year) » Shanchita Special Deposit Scheme
» Shachanda Protidin » Mudaraba Marriage Savings Scheme
» Shuborno Lata » Mudaraba Mohorana Savings Scheme
» Shobuj Chaya » Mudaraba Education Deposit Scheme
» Mudaraba Monthly Profit Deposit Scheme (1 year) » Mudaraba Bashsthan Savings Scheme
» SIBL Astha(one year)
» SIBL Astha(two year) • Cash Waqf
» Cash Waqf Deposit Scheme
» Cash Waqf Savings Scheme
» Cash Waqf Mudaraba Monthly Profit Deposit
Scheme

INVESTMENT PRODUCTS
• Bai- Murabaha
• Bai-Muajjal
• Hire Purchase Under Shirkatul Melk (Hpsm)
• Musharaka
• Bai- Salam
• Documentary Bill Purchase
• Quard
• SIBL Employees’ House Building Investment Scheme
• SME & Agricultural Finance
• Women Enterprise Finance
• Retail Finance
• Family Empowerment Islamic Micro Finance
CARD PRODUCTS
• Visa Islami Credit Card Products:
» Domestic Classic
» International Classic
» Domestic Gold
» International Gold
» International Platinum
• Visa Islami Prepaid Card Products:

» Hajj Card
» Travel Card
» Student Card
» Gift Card
• Visa Islami Debit Card Products:

» Visa Islami Zameel Card
OTHER SERVICES
• Online Banking
• ATM 24/7
• SWIFT
• ADC (Alternate Delivery Channel)
• Agent Banking
• Automated Clearing
• Electronic Fund Transfer
• Internet Banking (SIBL Now)
• Offshore Banking
• Centralized Trade Processing Services
• Remittance
• Locker
• Students File
• Capital Market Services Through SIBL Subsidiaries
• School Banking
• RTGS (Real Time Gross Settlement)

MEDIA ACCOLADE

BOARD OF
DIRECTORS
The existing Board Members are 12 (twelve) including 2 (two) Independent Directors. As per Corporate
Governance Code of BSEC and Bank Companies Act, 1991(amended up to 2018), 2(two) Independent
Directors were appointed in the Board under different law and their tenure is fixed thereon. The devoted
Board Members are highly committed towards achievement of the bank. they ensures superior achievement
through the sound financial results and stewards its leadership position in the industry. Moreover, the
board is engaged in major activities such as addressing major policy, regulatory and strategic issues and
providing proper guidelines, monitoring financial performance, monitoring operations of internal control,
approval of annual budget, major capital expenditure. Evaluation of financial performance, approval of
audit report, aware to maintain Shariah Principals. appointment and evaluation of Managing Director &
CEO and Senior Management team are the key decisions maker where the board of directors plays a
good part to carry on a sound banking system. In addition, the board of directors is responsible body to
make timely reporting to shareholder about the affairs and performance of the company. The Board also
responsible to comply all types of Rules, Regulations, Notifications and Orders issued by the Regulatory
Authorities in time to time. They also ensure to implement the good Corporate Governance in the Bank.
During the year 2020 through facing the adverse circumstances of the world-wide Pendamic situation, total
14 numbers of Board meetings were held compared to 17 meetings in the year 2019.
01. Prof. Md. Anwarul Azim Arif Chairman

02. Mr. Belal Ahmed Vice Chairman
03. Mr. Md. Sayedur Rahman Vice Chairman
04. Mr. Md. Kamal Uddin Director
05. Mrs. Nargis Mannan Director
06. Dr. Md. Jahangir Hossain Director
07. Mrs. Jebunnesa Akbar Director
08. Mr. Ali Hasan Md. Mahmud Ribon Director
09. Mr. Arshadul Alam Director
10. Mr. Mahmudul Alam Director
11. Professor A J M Shafiul Alam Bhuiyan, Ph.D Independent Director
12. Professor Mohammed Mizanur Rahman, Ph.D Independent Director
13. Mr. Quazi Osman Ali Managing Director & CEO
14. Mr. Abdul Hannan Khan SEVP & Company Secretary

PROF. MD. ANWARUL AZIM ARIF
Chairman
Prof. Md. Anwarul Azim Arif, the Chairman of the Board of Directors of Social Islami Bank
Limited was the Vice Chancellor of University of Chittagong from June 15, 2011 to June 14,
2015. He completed B.Com (Hons) and M.Com from the University of Chittagong. Later, in
1982, he completed MBA from the University of the Philippines. In January 1976, Prof. Arif
started his career as lecturer in the University of Chittagong and ended up as Vice-Chancellor
of the same University. During his career in the University of Chittagong. Prof. Arif served as
the Chairman of the Department of Management from 1992-95. He also served as the Vice
Chancellor of Premier University from 2002 to 2006 and as Pro-Vice Chancellor of Chittagong
University from July 2001 to November 2001. He was also the Dean of Faculty of Commerce,
University of Chittagong from 1994-96. Prof. Arif was elected as President of Chittagong
University Teachers’ Association from 1995-97 and as Secretary General, Bangladesh
University Teachers’ Association Federation from 1996 -97. He was a member of Executive
Committee of Association of Management Development Institutions in South Asia (AMDISA),
Hyderabad, India, a regional organization of management institutions of SAARC countries
from 1994 to 96. Prof. Arif was also elected as a Member of Chittagong University Syndicate
from 1997 to 98. Prof. Anwarul Azim Arif has discharged his responsibilities as a member
of Chittagong University Senate from 1986 to 2015. Prof. Arif was a responsible member of
Chittagong Education Board and also a member of Bangladesh Plantation Employees’ Provident
Fund Trustee Board nominated by the Ministry of Labor and Employment, Government of
Bangladesh. He is also the Chairman of the Executive Committee of Central Shariah Board
for Islamic Banks of Bangladesh and Chairman of Islamic Banks Consultative Forum. He also
participated in different trainings, seminars and workshops both in home and abroad. Prof.
Md. Anwarul Azim Arif visited different countries across the world including United States of
America (USA), Netherlands, Germany, France, Belgium, Norway, Australia, Japan, South Korea,
Thailand, Taiwan, Singapore, Malaysia, Srilanka and India. Prof. Md. Anwarul Azim Arif was
nominated for the “Best B School Award 2012” of Asia by “The World Education Congress”. He
was also awarded United Nations Human Rights Award, 2004 for extraordinary performance
in the field of human rights & social works. Prof. Arif received A/D/C Fellowship in 1980, CBC
Fellowship in 1996, US International Visitors Award in 1989 and received such others awards
& scholarships for his excellent academic performances.

MR. BELAL AHMED
Vice Chairman
Mr. Belal Ahmed is the Vice Chairman of the Board of Directors of Social Islami
Bank Limited and Chairman of the Executive Committee (EC) of SIBL. Mr. Belal
Ahmed started business in Bangladesh as Proprietor of Unitex Proprietorship after
completion of his higher education from University of Toronto, Canada. He is the
Managing Director of Unitex Spinning Limited, Unitex Composite Mills Limited,
Unitex Cylinder Ltd, UNI Paint Industries Ltd, Shahella Spinning Mills Ltd, Unitex
Power Plant Ltd, Omnibus Logistics Ltd of Unitex Group. He is also Shareholder of
Unitex LP Gas Limited, Unitex Steel Mills Limited. Mr. Belal Ahmed was one of the
Directors of Chittagong Chamber of Commerce and Industries during the period from
2013 to 2015. He has been representing Social Islami Bank Limited to Bangladesh
Association of Banks (BAB) since long. He is also the Director of SIBL Securities Ltd.
and SIBL Investment Ltd.

MR. MD. SAYEDUR RAHMAN
Vice Chairman
Mr. Md. Sayedur Rahman is a Director of Social Islami Bank Limited and one of the
renowned and successful industrialists and businessmen of high stature of the
country. He is a prominent figure in Garments industry. He is the Managing Director
of eminent M/S. Lodestar Garments Ltd., M/S. Mid-Asia Fashions Ltd.. He is also
a Philanthropist engaged in various social activities in the Country. He is also
discharging his responsibilities as a member of Risk Management Committee of the
Bank.

MR. MD. KAMAL UDDIN
Director
Mr. Md. Kamal Uddin is one of the renowned and successful Industrialists and
well experienced international Businessman of the country. As a multitalented
businessman he engaged himself with various types of National and international
business alongwith well reputed organizations which makes him a forward looking
and progressive businessman which already reached him an enviable height.
Currently he is the proprietor of CBM Consortium. He is the Chairman of Mercantile
Insurance Company Ltd. He is also the Managing Director of Chittagong Builders &
Machinery Ltd., Merchant Securities Limited and Sifang Securities Limited. He is also
the Director of Human Resources Development Co. Ltd., Central Hospital (PVT) Ltd.,
ASM Chemical Industries Ltd. and Universal Health Services & Research Ltd. He is
also a Veteran in Stock Market Business. He is a well known Social Organizer and
a man of Islamic Personality. Mr. Uddin has widely traveled in several countries in
connection with business and participated in different trade fairs. He is the Chairman
of Risk Management Committee and Member of the Audit Committee of the Bank. He
is also the Chairman of SIBL Securities Ltd. and SIBL Investment Ltd.

MRS. NARGIS MANNAN
Director
Mrs. Nargis Mannan is a Sponsor Director of Social Islami Bank Limited: received
her B.A (Hons) & M.A Degree in Political Science from University of Dhaka in 1964;
served as lecturer in Pakistan Council, Islamabad Pakistan (1967-69).She is an
international recognized copper artist: held a number of solo exhibitions in various
countries around the world that includes Lae, Papua New Guinea (1976); Jeddah
Fine Arts Society (1979 to 1995) in Jeddah, Saudi Arabia; Shilpa Kala Academy
in Dhaka, Bangladesh (1987); Soviet Culture Centre in Dhaka, Bangladesh (1987),
Frunge, Kirghizia, former U.S.S.R (1988); Nairobi, Kenya (1994); Academy of Fine Arts
in Calcutta, India (1995); The National Museum in Dhaka, Bangladesh (1998).
She also received a number of Awards that includes: Moonis Raza Memorial Award
at the Indian Institute of Technology (IIT), New Delhi, given by Global Association of
NRI in 1996; Sher-e-Bangla National Award given by National Personality Research
Centre in 2004; Begum Rokeya Shining Personality Award-2006, given by Narikantho
Foundation. She has been involved in many social and cultural activities. She was the
President of Padakkhep-’64 during the period from 2006 to 2008, an Association of
Dhaka University Gradutes-64. She was also the Treasurer of Soroptimist International
Club of Dhaka during the period from 2007 to 2015.
She is the Founder Trustee and Vice-Chairman of House of Mannan Charitable Trust
(HMCT). She is the spouse of Late Prof. Dr. M. A. Mannan, Founder Chairman of
Social Islami Bank Limited.

DR. MD. JAHANGIR HOSSAIN
Director
Dr. Md. Jahangir Hossain is a Director of Social Islami Bank Limited. He completed his
M.B.B.S from Sylhet MAG Osmani Medical College, Bangladesh. He also completed
“Advanced Diploma in Ultrasound” from Institute of Ultrasound Techniques, Toronto,
Ontario, Canada in 2008 and “Diploma in Medical Ultrasound” from Shristy Institute for
Health Sciences, Dhaka in the year 2007. He has more than 43 years of professional
experience in his medical career. He started his career in the year 1975 as Lecturer
of Sir Salimullah Medical College & Hospital, Dhaka. After that he left for Kingdom of
Saudi Arabia and served Ministry of Health of KSA for 25 years and voluntarily retired
in the year 2003 as Senior Medical Officer. He is discharging his responsibilities
competently in the affairs of the Board of Directors of the Bank. Mr. Jahangir is also
the member of Audit Committee of the Bank.

MRS. JEBUNNESSA AKBAR
Director
Mrs. Jebunnessa Akbar is a Director of Social Islami Bank Limited. She completed
her Graduation from Chattagram College. She also completed a professional course
on “ Fashions and Jewelry Designing” from the Institute of Fashions and Jewelry
Designing, New Dilhi, India. Mrs. Akbar achieved a Diplima in Computer Science
from APTECH. Uttara, Dhaka. She bears 26 (twenty six) years of experience in
different field of welfare organization. She was a Director of BIFC from June 2016
to December 2017. She was the president of National Defence College (NDC) Ladies
Club (Welfare Organization of Ladies and Children of NDC’s Officers, Course Members
& Employees) from June2011 to February 2015 and DGFI (Directorate General of
Forces Intelligence) Ladies Club (Welfare Organization of DGFI’s Civil and Military
Officers and Military and Civil Employees’s wives and Children) from Feb 2009 to June
2011. She was the Vice President of Sena Paribar Kalyan Samity Central Committee,
Dhaka (Welfare Organization of Soldiers Wives and Children all over the Bangladesh
Army) from Feb-2001 to Dec 2002 and the Secretary of Ladies Club, Bangladesh High
Commission, New Dilhi (Welfare Organization of Wives and Children of Diplomate &
Employees posted at New Dilhi High Commission) from Dec 1995 to Oct 1999.
She is discharging her responsibilities competently in the affairs of the Board of

Directors and Executive Committee (EC) of the Bank.

MR. ALI HASAN MD. MAHMUD RIBON
Director
Mr. Ali Hasan Md. Mahmud Ribon appointed as a Director of Social Islami Bank
Limited on 13th November, 2017. He bears almost 40 years of business Experience
in different fields. He is holding the degree of Bachelor of Arts under the University
of Rajshahi. He is a knowledgeable individual in exporting fish. He also bears a
vast knowledge as Contractor. He is the Chairman of M/S. Mahmud Ribon. He is
discharging his responsibilities competently in the affairs of the Board of Directors
of the Bank. He is also discharging his responsibilities as a member of the Risk
Management Committee of the Bank.

MR. ARSHADUL ALAM
Director
Mr. Arshadul Alam a industrialist of the Country and also a Director of Social Islami
Bank Limited. He completed his MBA from American International University-
Bangladesh (AIUB), Dhaka, Bangladesh. He started his business after completion
of his Under graduation in Business Communication from University of Queensland,
Brisbane, Australia. He bears more than 14 (forteen) years of experience in different
fields of business.He is the Proprietor of Uni-Trade International & Nishat Traders and
he is also the Managing Director of Jesco Capital Management Ltd. He is discharging
his responsibilities competently in the affairs of the Board of Directors of the Bank.
He is also discharging his responsibilities as a member of the Executive Committee
(EC) of the Bank.

MR. MAHMUDUL ALAM
Director
Mr. Mahmudul Alam, a young emerging entrepreneur of Bangladesh is a member
of the Board of Directors of Social Islami Bank Limited. He is from a renowned
business family of Chittagong. Mr. Mahmudul Alam strives for personal and business
excellence. Therefore, he attained MA with Honors in Economics and Accounting
from The University of Edinburgh and achieved success in the business sector by
establishing Paragon Transport and Amir Traders. He has experience in managing
large companies with dynamic leadership, transparency, honesty, and outmost
dedication. He is one of the promising young emerging businessmen of our country.
He is well travelled around the world.

PROFESSOR A J M SHAFIUL ALAM BHUIYAN, PH.D
Independent Director
Professor A J M Shafiul Alam Bhuiyan, PH.D has been associated as an Independent
Director of Social Islami Bank Limited since long. He is an well known Professor
of the University of Dhaka having an immense knowledge and experience in Mass
Media Communication and Journalism, Dr. Bhuiyan was ranked First Class First
both in B A (Hons.) and M. A in the said discipline. He did Ph. D. in Media and
Communication from a renowned North American University. He also bears a vast
professional experience as Professor and Chairman of Department of Television, Film
and Photography, University of Dhaka. He is also the advisor of the Department of
Media and Mass Communication, American International University, Bangladesh. Dr.
Bhuiyan worked as researcher and team leader of different projects of Bangladesh and
other international organizations like UNESCO and UNDP Bangladesh. Mr. Bhuiyan is
also prominent media personnel. Mr. Bhuiyan is also the Chairman of Board Audit
Committee of the Bank. He is also an Independent Director of SIBL Investment Ltd.
(a subsidiary company of the bank).

PROFESSOR MOHAMMED MIZANUR RAHMAN
Professor Mohammed Mizanur Rahman, PH.D has been associated as an
Independent Director of Social Islami Bank Limited since long. He completed his
BSE & MSE in Applied Chemistry and Chemical Engineering from the University of
Dhaka in the year-1995 and 1996 respectively. Having an immense knowledge and
experience in diversified fields, he discharged his responsibilities as a Member and
CEO (from July 2015 to date) of different Institutions under Ministry of Textile and
Jute. He is serving as standing committee and project implementation of the Skill for
Employment investment project (SEIP-BTMA) from July 2015 to continue financed by
ADB and Ministry of Finance Govt. Dr. Rahman is a member of the National Science
and Technology fellowship Committee since January 2014 under the Ministry of
Science and Technology GoB. He also augmented his qualifications from the different
International Universities of Japan and Germany. He is vastly known Professor of
Department of Applied Chemistry and Chemical Engineering, University of Dhaka. He
is also discharging his duty as a Syndicate Member and Academic Council Member
of the University of Dhaka, Member of the Governing body of the Enam Medical
College, Savar, Dhaka and Shymoli Textile Engineering College.
Dr. Rahman is a Gold Medalist Recipient in Physical Science awarded by the

Bangladesh Academy of Science in the year of 2009 and Young Scientist Award
Winner of Third World Academy of Science (TWAS), Triste, Italy. He is also awarded
with, Primary Scholarship Award of Ministry of Education, Bangladesh, Younger
Researcher Award-2005, Kumamoto University, Dr. Rahman is Japan Society for the
promotion of Science (JSPS), Japan and Alexandar von Humboldt (Germany) fellow
these are the two prestigious fellowships in the World. He is also discharging his
responsibilities as a member of the Executive Committee (EC) of the Bank. He is also
an Independent Director of SIBL Securities Ltd. (a subsidiary company of the bank).

MR. QUAZI OSMAN ALI
Managing Director & CEO
Mr. Quazi Osman Ali, a seasoned banker, has a glorious professional banking career
spanning over three decades. Mr. Ali was born on 15th December, 1956. He completed
Bachelor of Commerce (Honours) and Masters of Commerce in Management from
the University of Chittagong in 1977 and 1978 respectively. He started his banking
career as Trainee Officer at National Bank Limited (NBL) in 1984 and served the Bank
up to the year 2000 in different capacities.
He joined First Security Islami Bank Limited (FSIBL) in the year 2000 as Assistant Vice
President and served there up to 30th October, 2017. During his long tenure at FSIBL
he served as the Head of different Branches and Divisions at Head Office. He also
served as the Zonal Head of Chittagong Zone of FSIBL. As the acknowledgement of
his sincerity, dedication and performance, he was promoted to the ranks of Executive
Vice President, Senior Executive Vice President, Deputy Managing Director and
Additional Managing Director in FSIBL.
Mr. Ali joined Social Islami Bank Limited (SIBL) as its Managing Director & CEO with
effect from 31st October, 2017. During his long and colourful 36 years of banking
career, he gained extensive banking experience and developed a wide range of
expertise as he worked in different capacities in almost all the areas of banking
viz. Strategic Planning, Managing Investment Portfolio, Foreign Trade, Treasury
Operation, Asset Liability Oversight, Leadership Development, Risk Mitigation,
Regulatory Compliance, Customer Engagement, Branch Management, etc.
Mr. Quazi Osman Ali attended numerous seminars, workshops and training programs
at home and abroad. A widely travelled person, Mr. Ali visited many countries including
the United States of America (USA), Canada, Switzerland, France, the United Arab
Emirates (UAE), Malaysia, Myanmar, Indonesia, Singapore and India to enrich his
professional knowledge.

EXECUTIVE COMMITTEE internal audit is supervised under Internal Control & Compliance
Division (ICCD). The committee reviews the financial reporting
Name of the Members Designation process, the system of Internal Control, Management Information
System, Management of Risks, the Bangladesh Bank and Internal
Mr. Belal Ahmed Chairman Audit reports, Audit process and Compliance with laws and
Mrs. Jebunnesa Akbar Member regulations and banks’ own code of conduct. During the year
2020, total 5 nos. of Board Audit Committee Meetings were held
Mr. Arshadul Alam Member
against 10 nos. of meetings of 2019. Audit Committee also plays
Professor Mohammed Mizanur Rahman, Ph.D Member the following role in the bank-
Social Islami Bank Ltd. has constituted a four members Executive a. Oversee the financial reporting process;
Committee of the board as per Bangladesh Bank guidelines to
ensure good corporate governance in the business. This is the b. monitor choice of accounting policies and principles;
subordinate committee of the Board of Directors of the Bank.
The Committee is responsible for developing policy and strategy c. monitor Internal Audit and Compliance process to ensure
for smooth operation of the business. Moreover, the committee that it is adequately resourced, including approval of the
is also responsible for business development of the bank to Internal Audit and Compliance Plan and review of the
ensure maximization of shareholders’ wealth protecting other Internal Audit and Compliance Report;
stakeholders’ interest too in the company. During the year 2020,
total 7 Executive Committee Meetings were held against 7 nos of d. oversee hiring and performance of external auditors;
meeting in the year 2019.
e. hold meeting with the external or statutory auditors for
• The executive committee can decide or can act in those review of the annual financial statements before submission
cases as instructed by the Board of directors that are to the Board for approval or adoption;
not specifically assigned on full board through the Bank
f. review along with the management, the annual financial
Company Act, 1991 and other laws and regulations.
statements before submission to the Board for approval;
• The executive committee can take all necessary decision or
g. review along with the management, the quarterly and half
can approve cases within power delegated by the board of
yearly financial statements before submission to the Board
directors.
for approval;
• All decisions taken in the executive committee shall be
h. review the adequacy of internal audit function;
ratified in the next board meeting.
i. review the Management’s Discussion and Analysis before
• The executive committee can sit any time as it may deem fit.
disclosing in the Annual Report;
• The committee may invite Chief Executive Officer, Head of
j. review statement of all related party transactions submitted
internal audit or any other Officer to its meetings, if it deems
by the management;
necessary;
k. review Management Letters or Letter of Internal Control
BOARD AUDIT COMMITTEE weakness issued by statutory auditors;
Name of the Members Designation l. oversee the determination of audit fees based on scope and
magnitude, level of expertise deployed and time required
Professor A J M Shafiul Alam Bhuiyan, Ph.D Chairman for effective audit and evaluate the performance of external
Mr. Md. Kamal Uddin Member auditors;
Dr. Md. Jahangir Hossain Member
m. The Audit Committee reported on its activities to the Board.
In order to establish a good corporate governance and a culture of
adequate internal control system inside the bank and to evaluate BOARD’S RISK MANAGEMENT COMMITTEE
the activities of the Bank as per guidelines of the Bangladesh Bank
and Corporate Governance Code (CCG) of Bangladesh Securities Name of the Members Designation
and Exchange Commission (BSEC), SIBL has constituted an Audit
Mr. Md. Kamal Uddin Chairman
Committee that plays an effective role in devising an efficient and
secured banking system. The Board Audit Committee has been Mr. Md. Sayedur Rahman Member
formed comprising three members of the Board of Directors. Mr. Ali Hasan Md. Mahmud Ribon Member
Professor A J M Shafiul Alam Bhuiyan, Ph.D, Independent Director
of the bank acted as the Chairman of the Board Audit Committee
who possesses sound knowledge of different field in the industry.
He is a prominent media personnel having a vast professional
experience as a renowned Professor of University of Dhaka. The

Under the stipulated instructions of Bangladesh Bank, the bank has SHARIAH SUPERVISORY COMMITTEE
formed a separate Board’s Risk Management Committee (BRMC)
consisting of 3 (three) members of the Board of Directors. In view Name of the Members Designation
of BRPD Circular no 11, revised Risk Management Guidelines
2012 and subsequent DOS Circular No.4 dated 8th October, Mufti Sayeed Ahmed Chairman
2018, functions of the Board’s Risk Management Committee Dr. Md. Manzur-E-Elahi Member Secretary
shall comprise an effort to ensure proper risk management in
Professor Dr. Mohammad
bank. The BRMC reviewed stress testing, comprehensive risk Member
Abdus Samad
management reports, Internal Capital Adequacy Assessment
Reports and other reports as per Bangladesh Bank guideline for Shah Mohammad Wali Ullah Member
examining the bank’s capacity of managing future shocks as Dr. Hasan Mohd Moinuddin Member
well as deals with all potential risks that might occur in future.
Dr. Md Nasir Uddin Mizi Member
During the year 2020, total 4 (four) Risk Management Committee
Meetings were held against 4 meetings in 2019. A brief on the Professor Ahmad Ali Member
function of the members of the Risk Management Committee Molana Obaid Ullah Hamzah Member
may be given as under-
Janab Afeef Furqan Member
• to acquire clear understanding of the type of risk inherent
in Business line and to take appropriate steps to ensure SIBL has formed a Shari’ah Supervisory Committee (SSC)
different risk management issue of the bank. consisting of 9 (nine) prominent Islamic Scholars. SIBL always
tries to follow the teachings of Islam in activities as well as to
• to define the risk appetite.( Risk appetite is generally strengthen the trust of the clients. During the year 2020, total 4
expressed through both quantitative and qualitative means (four) Shariah Supervisory Committee (SSC) Meetings (03 full &
and should consider extreme conditions, events and 1 sub committee) were held. As per Article 104 of the Articles of
outcomes. It should be stated in terms the potential impact Association of the Bank, the board of Directors of the Bank has
on profitability, capital and liquidity) determined the terms and references as under-
• The function of the Shari’ah Supervisory Committee is to
• to design the organization structure to manage risk within offer views on matters related to the Bank from time to time.
the bank. The Shari’ah Supervisory Committee may require any papers
from the Bank and examine the same in order to ensure that
• reviewing and approving risk management policies and re-
all activities of the Bank are being carried out in accordance
viewing at least annually to limit the risks, consistent with
with the Islamic principles.
the bank’s risk appetite.
• The SSC will assist the Board of Directors (BOD) by
• to ensure adequate record keeping and proper reporting way of advice on matters relating to Shari’ah. Their
system. recommendations on Shari’ah principles must be respected
by the BOD as it is committed to run the Bank strictly in
• to review and approve risk limits and re-reviewing at least accordance with Shari’ah.
annually.
• The opinions of the majority of the members shall be taken
• to ensure monitoring and compliance with overall risk to be the opinion of the SSC provided that the said opinion is
management policies. supported by the majority of Fakihs/Muftis/Islamic Scholars
present in the meeting.
• to be knowledgeable about the methods available to
• The SSC shall have a Secretariat. There will be a Member-
measure risks for various activities.
Secretary, who will see whether the functions of the Bank
• Supervising day to day activities of senior managers and are being carried out in accordance with the principles
head of business line. of Islamic Shari’ah. The Member-Secretary shall remain
responsible to the Shari’ah Supervisory Committee.
• establishing committee and sub-committee to be in charge • Salaried Officer(s) designated as “Mudaqqiq” also called
of ongoing risk management. “Muraquib” with sufficient knowledge about all schools
of Islamic thoughts may be appointed by the Bank on the
• to carefully evaluate all the risks associated with new recommendation of the SSC to ensure compliance of the
activities and ensure that proper infrastructure and internal Shari’ah principles in each and every case of the Bank
control are in place. and will be responsible to the SSC. He (they) would be
employee(s) of the Bank.
• to provide adequate staffing for activity and designated staff
with appropriate credentials to supervise the activity. • The status of the SSC shall be advisory to the BOD and
Supervisory in respect of operational activities of the Bank.
• to ensure that all Senior Management including line
• The Annual report of the bank should be certified by the
managers have sufficient knowledge on risk management. Shari’ah Supervisory Committee.

MANAGEMENT COMMITTEE (MANCOM)
Sl. No Name Designation Position
1 Mr. Quazi Osman Ali Managing Director & CEO Chairman
2 Mr. S T M Abu Naser Chowdhury Deputy Managing Director Member
3 Mr. Md. Sirajul Hoque Deputy Managing Director Member
4 Mr. Md. Shamsul Hoque Deputy Managing Director Member
5 Mr. Walid Mahmud Sobhani SEVP & CFO, FAD, HO, Dhaka Member
6 Mr. Kazi Obaidul Al-Faruk SEVP, HRD. HO, Dhaka Member Secretary
7 Mr. Abdul Hannan Khan SEVP & Company Secretary, HO, Dhaka Member
8 Mr. Md. Giash Uddin Bhuiyan EVP, ICCD, HO, Dhaka Member
MANAGEMENT TEAM
The strategic management activities and overall business operations of SIBL are supervised and directed by the core
management team of the bank. The Managing Director & CEO Mr. Quazi Osman Ali leads the core management team as
well as the whole Bank. The core management team of the Bank consists of four Deputy Managing Directors and all of
whom have vast experience in banking. The members of the team have also attended numerous training and development
programs both at home and abroad which enabled them to build enormous knowledge base in banking.
MANAGING DIRECTOR & CEO

Mr. Quazi Osman Ali
DEPUTY MANAGING DIRECTOR
Mr. S T M Abu Naser Chowdhury
Mr. Md. Sirajul Hoque
Mr. Md. Shamsul Hoque
Mr. Mohammad Forkanullah
SENIOR EXECUTIVE VICE PRESIDENT EXECUTIVE VICE PRESIDENT SENIOR VICE PRESIDENT
1. Mr. Walid Mahmud Sobhani 1. Mr. Md. Nazmus Saadat 1. Mr. Md. Khorsed Alam
2. Kazi Obaidul Al-Faruk 2. Mr. Mohammad Shoeb 2. Mr. Mahbub Hossain
3. Mr. Abdul Hannan Khan 3. Mr. Md. Sultan Badsha 3. Mr. Muhammed Zubair
4. Mr. Joynal Abedin 4. Mr. Abu Rushd Iftekharul Haque 4. Mr. Mohammad Mosle Uddin
5. Mr. Md. Abdul Hamid 5. Mr. Md. Wali Ullah
6. Mr. Md. Giash Uddin Bhuiyan 6. Ms. Shamima Nargis
7. Mr. Md. Akmal Hossain 7. Mr. Shawket-Ul-Amin
8. Mr. Md. Shahriar Khan 8. Mr. Md. Mozharul Haque
9. Mr. Md. Abdul Mottaleb 9. Mr. Muhammed Mizanul Kabir
10. Mr. Md. Towhid Hossain 10. Mr. Sayed Mohammed Sohel
11. Mr. Mohammad Eleash Khan
12. Mr. Md. Shafiqul Islam
13. Mr. Md. Mohibul Kadir
14. Mr. Md. Aminur Rahman
15. Mr. A.M. Saleh Uddin Kutubi
16. Mr. Shyam Sundar Roy
17. Mr. Md. Nasir Uddin Chowdhury
18. Mr. Md. Nurul Alam
19. Mr. Sadat Ahmad Khan
20. Mr. Md. Sharif Al Kashem
21. Mr. Md. Moniruzzaman
22. Mr. Saif-Ul-Alam Md. Al-Amin

ASSET LIABILITY COMMITTEE (ALCO)
Mr. Quazi Osman Ali Managing Director & CEO Chairman
Mr. S T M Abu Naser Chowdhury Deputy Managing Director Member
Mr. Md. Sirajul Hoque Deputy Managing Director Member
Mr. Md. Shamsul Hoque Deputy Managing Director Member
Mr. Mohammad Forkanullah DMD & Head of Principal Branch Member
Mr. Walid Mahmud Sobhani SEVP & CFO Member Secretary
Mr. Abdul Hannan Khan SEVP & CS Member
Mr. Md. Sultan Badsha EVP & Head of ICTD Member
Mr. Md. Abdul Hamid EVP & Head of IAD Member
Mr. Md. Akmal Hossain EVP & Head of ID Member
Mr. Md. Towhid Hossain EVP & Head of IRMD Member
Mr. Md. Mozharul Haque SVP & Head of TF & RMGD Member
Mr. Muhammed Mizanul Kabir SVP & Head of RMD (CRO) Member
Mr. Sadat Ahmad Khan SVP & Head of SME Member
Mr. Md. Moniruzzaman SVP & Head of Marketing Unit Member
Mr. Saif Al-Amin SVP & Head of BCGBD Member
Mr. Mohammad Ahsan Habib VP & Head of TFO Member
INVESTMENT COMMITTEE
1 Mr. S T M Abu Naser Chowdhury Deputy Managing Director Chairman
2 Mr. Md. Sirajul Hoque Deputy Managing Director Member
3 Mr. Md. Shamsul Hoque Deputy Managing Director Member
4 Mr. Joynal Abedin Senior Executive Vice President Member
5 Mr. Md. Akmal Hossain Executive Vice President Member
6 Mr. Md. Towhid Hossain Executive Vice President Member Secretary
7 Mr. Sadat Ahmad Khan Senior Vice President Member
8 Mr. Md. Shafiqul Islam Senior Vice President Member
SIBL INTEGRITY COMMITTEE:

1 Mr. S T M Abu Naser Chowdhury Deputy Managing Director Chairman
2 Mr. Walid Mahmud Sobhani Senior Executive Vice President & CFO Member
3 Mr. Kazi Obaidul Al-Faruk Senior Executive Vice President Member
4 Mr. Abdul Hannan Khan SEVP & Company Secretary, HO, Dhaka Member
5 Mr. Abdul Mottaleb Executive Vice President Member
6 Mr. Muhammed Mizanul Kabir Senior Vice President Member Secretary & Focal Point
7 Mr. Muhammad Mahfuzur Rahman Bhuiyan Vice President Member

SENIOR MANAGEMENT TEAM
Mr. Quazi Osman Ali

Managing Director & CEO
Mr. S T M Abu Naser Chowdhury Mr. Md. Sirajul Hoque

Deputy Managing Director Deputy Managing Director

Mr. Md. Shamsul Hoque Mr. Mohammad Forkanullah
Deputy Managing Director Deputy Managing Director
Mr. Walid Mahmud Sobhani Mr. Kazi Obaidul Al-Faruk

SEVP & CFO, FAD SEVP, HRD
Mr. Abdul Hannan Khan Mr. Joynal Abedin

SEVP & Company Secretary SEVP & Manager, Foreign Exchange Branch

STATUS OF COMPLIANCE REGARDING
APPOINTMENT OF CHIEF FINANCIAL OFFICER &
CHIEF INFORMATION TECHNOLOGY OFFICER IN
RELATION TO BRPD CIRCULAR LETTER NO-03,
DATED: 25 MARCH 2018.
A) CHIEF FINANCIAL OFFICER (CFO)
Mr. Walid Mahmud Sobhani, FCMA, Senior Executive Vice President, joined Financial Administration Division on April 2002,
is performing the duties as Chief Financial Officer (CFO) of the bank since 10 May 2007. He has experience working with
the accounts & Tax department of the bank for 18 years. He has been serving with the banking sector since April 1988
till to date i.e for 32 years. In addition to his M.Com in Accountancy (Year1986), he has qualified as graduate in Law from
Chittagong University in year 1989. He also completed one year Post-Graduation in Bank Management from Bangladesh
Institute of Bank Management in year 1987. He qualified as a Cost and Management Accountant in the year 1991 from The
Institute of Cost and Management Accountant (ICMAB) and became a Fellow member in the year 1996.
B) CHIEF INFORMATION TECHNOLOGY OFFICER (CITO)

Mr. Md. Sultan Badsha, Executive Vice President has been appointed as Chief Information Technology Officer (CITO) for
SIBL since 2017. He has been serving as Head of ICT Division in SIBL Head Office since year 2008. He has been working with
the Engineering and Information Technology sector almost for 34 years since year 1986. He has a total of 19 years working
experience in Banks. He has graduated in Engineering (EEE) from Rajshahi Engineering University. Later, he completed Post
Graduation in Computer Science from Bangladesh Institute of Management (former BMDC). He also obtained professional
certification for Oracle Certified “Database Administrator” course and Sun Certified Sun Solaris 9 “System Administration”
course. He is a Fellow Member of the Institution of Engineers Bangladesh and Associate Member of Bangladesh Computer
Society.

CAPITAL (PAID-UP) PATTERN OF SIBL:
Face Value Cumulative Value of issued Cumulative
No. of
Year Declaration per Share no. of Capital for the value of Capital
Shares
(Taka) Shares year (Taka) (Taka)
1995 Initial Capital 118,380 1,000 118,380 118,380,000 118,380,000
1996 - - 118,380 - 118,380,000
1997 6.43% Bonus issue for the year 1996 7,620 1,000 126,000 7,620,000 126,000,000
1998 - - - 126,000 - 126,000,000
1999 Right Share Issued 74,000 1,000 200,000 74,000,000 200,000,000
2000 Placement 50,000 1,000 250,000 50,000,000 250,000,000
Initial Public Offer 10,000 1,000 260,000 10,000,000 260,000,000
2001 20% Bonus Issue (Declared in the year 2004) - - 260,000 - 260,000,000
2004 Bonus Issue (For the years 2001, 2002, 2003) 325,000 1,000 585,000 325,000,000 585,000,000
2005 - - - 585,000 - 585,000,000
2006 - - - 585,000 - 585,000,000
2007 1:1 Right Share 5,345,550 100 11,195,550 534,555,000 1,119,555,000
2008 17% Bonus Issue for the year 2007 1,903,243 100 13,098,793 190,324,300 1,309,879,300
1:1 Right Share 12,508,587 100 26,917,259 1,250,858,700 2,691,725,900
2010 1:1% Bonus Issue for the year 2009 2,960,899 100 29,878,158 296,089,850 2,987,815,750
1:1 Right Share 298,781,575 10 39,392,570 2,987,815,750 6,393,925,700
2012 10.50% Cash Dividend for the year 2011 - 10 - - 6,393,925,700
2013 10% Bonus Issue and 5% Cash for the year 2012 63,748,994 10 637,489,940 7,031,415,640
2014 12% Cash Dividend for the year 2013 - 10 - 7,031,415,640
2015 18% Cash Dividend for the year 2014 703,141,564 10 - 7,031,415,640
2016 15% Cash Dividend & 5% Stock Dividend for the Year 2015 35,157,078 10 738,298,642 351,570,780 7,382,986,420
2017 20% Cash Dividend for the year-2016 738,298,642 10 738,298,642 - 7,382,986,420
2018 10% Stock Dividend for the year-2017 73,829,864 10 812,128,506 738,298,640 8,121,285,060
2019 10% Stock Dividend for the year-2018 81,212,850 10 893,341,356 812,128,500 8,933,413,560
5% Stock Dividend & 5% Cash Dividend for the
2020 44,667,067 10 938,008,423 446,670,670 9,380,084,230
year-2019

PATTERN OF SHAREHOLDINGS
(INVESTORS GROUP WISE)
No. of No. of No. of No. of

Percentage Percentage
Sl Shareholders Shares Shareholders Shares
Investor Group as on as on
no as on as on as on as on
31.12.2020 31.12.2020 31.12.2020 31.12.2019 31.12.2019 31.12.2019
1. Sponsors & Directors (Individual) 21 89292991 9.52 21 84949096 9.5093
2. Sponsor & Directors (Company) 11 192613955 20.53 11 183441866 20.5307
3. Foreign Investors 12 12809800 1.37 13 12306920 1.3800
4. General Public 27686 179937174 19.18 29008 173459424 19.4100
5. Institutions (Bank & Insurance) 44 25890523 2.76 36 24535859 2.7500
6. Institutions (Others) 535 417197182 44.47 512 397223790 44.4600
7. ICB Accounts Holders 25 63754 0.01 27 60895 0.0100
8. ICB 1 10754004 1.15 1 10148204 1.1400
9. ICB Unit Fund 1 7408826 0.79 1 5321737 0.6000
10. Employee 2 1797866 0.19 2 1598195 0.1800
11. Non-Resident Bangladeshi 9 242348 0.03 9 283228 0.0300
Total 28347 938008423 100.00 29647 893341356 100.00
HOLDINGS IN 2020
No. of No. of
No. of Shares Percentage No. of Shares Percentage
Shareholders Shareholders
Share holding range as on as on as on as on
as on as on
31.12.2020 31.12.2020 31.12.2020 31.12.2019 31.12.2019 31.12.2019
Less than 500 shares 12383 1993664 0.21 13072 2095017 0.23
501-5000 12683 22780015 2.43 13336 23417108 2.62
5001-10000 1706 11909672 1.27 1697 11698548 1.31
10001-20000 794 11184125 1.19 787 10933635 1.22
20001-50000 417 12756769 1.36 409 12580029 1.41
50001-99999999999 364 877384178 93.54 346 832617019 93.20
Total 28347 938008423 100.00 29,647 893341356 100.00

SHARES HELD BY THE DIRECTORS
AS ON 31.12. 2020
Position held in Number of Total number
Sl Percentage
Name of the Directors the Bank as on Shares held on of Shares as
No. of total holding
31.12.2020 31.12.2020 on 31.12.2020
Prof. Md. Anwarul Azim Arif

01 Chairman 1,93,30,657 2.0608
[Representative of Hasan Abasan (Pvt.) Ltd]
Mr. Belal Ahmed
02 Vice- Chairman 1,93,24,305 2.0601
(Representative of Unitex Steel Mills Ltd.)
Mr. Md. Sayedur Rahman
03 Vice- Chairman 1,93,30,657 2.0608
(Representative of Prasad Paradise Resorts Ltd.)
Mr. Md. Kamal Uddin
04 Director 1,93,22,983 2.0600
(Representative of Lion Securities & Investment Ltd.)
05 Mrs. Nargis Mannan Director 1,87,60,679 2.0001
Dr. Md. Jahangir Hossain
06 Director 1,93,23,394 2.0600
(Representative of Reliable Entrepreneurs Ltd.)
Mrs. Jebunnesa Akber 19,26,06,962
07 Director 1,93,24,305 2.0601
(Representative of Unitex Cement Ltd.)
Mr. Ali Hasan Md. Mahmud Ribon
08 Director 1,93,29,387 2.0607
(Representative of Dynamic Ventures Ltd.)
Mr. Arshadul Alam
09 Director 1,93,30,657 2.0608
(Representative of Leader Business Enterprise Ltd.)
Mr. Mahmudul Alam
10 Director 1,92,29,938 2.0501
(Representative of Global Trading Corporation Ltd.)
Independent
11 Professor A J M Shafiul Alam Bhuiyan, Ph.D 0 0
Director
Independent
12 Professor Mohammed Mizanur Rahman, Ph.D 0 0
Directo
Financial Calendar
For the Year 2020

Un-audited Consolidated results for the 1st Quarter announced on : 25.06.2020
Un-audited Consolidated results for the 2nd Quarter announced on : 26.07.2020
Un-audited Consolidated results for the 3rd Quarter announced on : 29.10.2020
Audited Consolidated Financial Statements for the year ended 31st December 2020 approved on : 29.04.2021
Dividend for the year 20120 declared on : 29.04.2021
Declaration of ‘Record Date’ for holding of 26th Annual General Meeting : 01.06.2021
Notice of 26th Annual General Meeting served on : 14.06.2021
26th Annual General Meeting scheduled to be held on : 06.07.2021
Dividend for the year 2020 expected to be paid on : 18.07.2021
For the Year 2021
Un-audited Consolidated results for the 1st Quarter announced on : 24.05.2021
Un-audited Consolidated results for the 2nd Quarter expected to be announced on : 26.07.2021
Un-audited Consolidated results for the 3rd Quarter expected to be announced on : 27.10.2020
Audited Consolidated Financial Statements for the year ended 31st December 2021 expected to be approved on : 28.04.2022
Dividend for the year 2021 expected to be declared on : 28.04.2022
Expected Date of declaration of ‘Record Date’ for holding of 27th Annual General Meeting : 25.05.2022
Notice of 27th Annual General Meeting expected to be served on : 01.06.2022
27th Annual General Meeting Expected to be held on : 30.06.2022

PERFORMANCE OF THE BANK
Performance of the year 2020 has been conspicuous with a growth over the previous year recording achievements in
different segments of –
• Client deposit 11.83%
• Investment 13.75%
• Foreign Exchange Business -11.46%
• Operating Profit -31.30%
SIBL believes that the efforts of the year 2020 will inspire & stimulate the employees of the bank to accept the challenge of
the year 2021 and accordingly the bank is in the process to explore every potentiality of each individual employee to deploy
their sincere endeavor in the days ahead. In the year 2020, the bank has focused specially on the concepts of (i) Service
Excellence (ii) Quality & Secured Investment (iii) Non Funded Business (iv) Recovery from both regular and non-performing
Investment (iv) Exploration of Low Cost & no Cost deposits, Retail & Stable deposits particularly Scheme based deposit &
(v) Maintenance of an Ideal Deposit Mix with a view to constraining the cost on one side and to establish a safe & stable
deposit management system on the other. The results of the year 2020 are given as under:
Fig in million Taka
Indicators Target 2020 Actual- 2020 Actual- 2019 Achievement % Growth %

Deposit (Client) 338,000.00 299,504.34 267,828.58 48.04% 11.83%
Investment 290,850.00 300,617.94 264,268.59 118.96% 13.75%
Foreign Exchange Business 207,250.00 141,287.08 159,583.00 68.17% -11.46%
Operating Profit 8,000.00 4,605.30 6,703.50 57.57% -31.30%

SIBL AT A GLANCE
SL Particulars 2016 2017 2018 2019 2020
1 Authorized Capital (in million) 10,000.00 10,000.00 10,000.00 10,000.00 30,000.00
2 Paid-up Capital (in million) 7382.99 7382.99 8121.29 8933.41 9380.08
3 Total Shareholders Equity (in million) 14,187.8 14,166.45 15,749.88 17,271.33 18,038.39
4 Capital Base (Tier I & II) (in million) 19,195.04 21,725.08 26,111.51 27,901.80 30,368.90
5 Total Deposits (in million) 190,564.5 228,798.90 248,324.49 287,936.65 322,383.51
6 Client Deposits (in million) 178,846.1 203,126.69 224,339.78 267,828.58 299,504.34
7 Investments (General) (in million) 174,196.1 210,045.51 238,654.17 264,268.59 300,617.94
8 Investments (Shares & Securities) (in million) 12,310.58 13,082.52 13,086.55 19,118.98 18,487.37
9 Foreign Exchange Business (in million) 167,382.3 202,037.00 178,590.50 159,583.03 141,287.08
10 Operating Profit (in million) 5,698.08 6,166.21 6,143.12 6,342.11 4,343.21
11 Profit before Tax (in million) 4,192.19 3,535.13 3,848.29 3,134.03 3,040.65
12 Fixed Assets (in million) 3,257.52 3,480.82 3,563.53 3,606.05 4,431.01
13 Total Assets (in million) 227,704.2 276,348.95 307,305.32 345,056.23 384,999.71
14 Stock Dividend - 10% 10% 5% 5%
Cash Dividend 20.00% - - 5% 5%
15 Investments as a % of total deposits 91.41% 91.80% 96.11% 91.78% 93.25%
16 Investments as a % of Client deposits 89.86% 89.30% 91.54% 89.47% 90.65%
17 Capital to Risk Weighted Asset Ratio 11.55% 11.57% 14.27% 13.78% 13.50%
18 Ratio of Classified Investments to Total Investments 4.44% 8.20% 7.69% 6.63% 6.05%
19 No. of Foreign Correspondents 591 406 411 420 399
20 Number of Employees 2363 2601 2847 2957 3100
21 Number of Branches 125 138 155 161 168
22 Book Value per Share (Taka) 10 10 10 10 10
23 Earning per Share (Restated) (Taka) 3.1 1.97 1.77 1.62 1.65
24 Credit Rating by ECRL ECRL ECRL ECRL ECRL
Long Term AA- AA- AA- AA AA
Short Term ST-2 ST-2 ST-2 ST-2 ST-2
25 Moody’s b1 b2

GRAPHICAL PRESENTATION OF SIBL

REPORTS & STATEMENTS OF
VALUE ADDITION AND ITS DISTRIBUTIONS
VValue Added Report indicates exactly how a company accumulates total value from its area of operation during a
particular period and accordingly shows how the added value has been distributed to the society in the backdrop of the
general economy of a country.
Now days the most complex and modern business environment does not earn profit for itself only rather it cares to the
society and thus is committed to contribute to the economic growth. Such value is being added due to spill over economic
impact due to operation of the business houses.
SIBL as a commercial bank has a large scale of spill over economic impact side by side its financial impact through creating
values for distributions to the society year to year.
Value addition is a measure of wealth as created by the bank through its banking activities. The Statement shows how the
total wealth has been created and distributed among the stakeholders of the Bank in the year.
VALUE ADDED STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2020
Figure in Million Tk.
Particulars Year 2020 Year 2019

Investment Income 27,036.27 27,797.43
Income from Investment in Shares and Securities 762.38 760.57
Commission, Exchange and Brokerage 1,421.21 1,465.83
Other Operating Income 631.01 687.30
Sub-Total (A) 29,850.87 30,711.13
Less Cost of Services & Supplies
Profi t paid on Deposits 19,484.79 18,428.55
Rent, Taxes, Insurances, Electricity etc. 390.00 573.01
Legal Expenses 9.37 11.27
Postage, Stamps, Telecommunication etc. 6.36 6.75
Stationery, Printings, Advertisements etc. 122.61 161.00
Directors’ Fees & Expenses 4.79 9.50
Shariah Supervisory Committee’s Fees & Expenses 0.07 0.45
Auditors’ Fees 0.92 0.92
Repair of Bank’s Assets 84.17 66.48
Other Expenses 1,043.85 1,129.72
Sub-Total (B) 21,146.93 20,387.65
Value added by Banking Services (A-B) = C 8,703.94 10,323.48
Less Provisions related to Investment
Specific provisions for Investment 230.21 1,073.66
General Provisions for Investment 1,061.68 2,085.45
General Provisions for off-Balance Sheet exposure -19.84 25.33
Provision for other assets 30.51 23.64
Provision for diminution in value of shares - -
Sub-Total (D) 1,302.56 3,208.08
Total Value Addition (C-D) 7,401.38 7,115.40

DISTRIBUTIONS OF VALUE ADDITION
FOR THE YEAR ENDED 31ST DECEMBER 2020
Fig in million Taka
Distribution of Value Addition Year 2020 Percentage Year 2019 Percentage

To the Employees- as salaries & allowances 3567.61 48.20% 3395.57 47.72%
To the Government- as tax 1482.53 20.03% 1593.09 22.39%
To the Society- as Zakat 165.69 2.24% 149.52 2.10%
To the growth of the entity-(-) 2185.55 29.53% 1977.22 27.79%
as Statutory Reserve (-) 608.13 8.22% 626.81 8.81%
as Retained Earnings (-) 942.81 12.74% 894.64 12.57%
as Deferred Tax (-) 7.18 0.10% 19.49 0.27%
as Depreciation (-) 500.50 6.76% 311.22 4.37%
as Gratuity Fund 126.93 1.71% 125.06 1.76%
7401.38 100.00% 7115.40 100.00%
DISTRIBUTION OF DIVIDEND AND RETAINED

BY THE ENTITY
Fig in million Taka

Retained earnings (Balance Sheet) for payment as dividend and retain by the entity 1056.77 984.28
Paid as dividend to the share holders - 893.34
Dividend to be paid to the share holders 938.01
Retained by the entity 118.76 90.94

ECONOMIC VALUE ADDED (EVA) STATEMENT
EVA indicates the true economic profit of a company. EVA is an estimate of the amount by which earnings exceed or fall
short of required minimum return for shareholders at comparable risk. Shareholders are always conscious about their
return on capital invested. As a commercial banking company, SIBL is deeply concern for distribution of value to all of its
Shareholders.
Fig in million Taka
Particulars Year-2020 Year-2019

Total Revenue from Banking Services 29850.87 30711.13
Less Total expenses related to revenue 25507.66 24369.01
Operating profit 4343.21 6342.12
Less Corporate Tax (1489.71) (1612.58)
Net operating profit after tax 2853.50 4729.54
Shareholders’ Equity 18038.39 17271.33
Add Accumulated provision for investment (Inclg. Off B/S items) 13253.74 11997.40
Sub Total 31292.13 29268.73
Average Shareholders’ Equity 17654.86 16510.61
Return of Equity 8.78% 9.21%
Capital Charges 1550.10 1520.63
Economic Value Added 1303.40 3208.91
MARKET VALUE ADDED (MVA) STATEMENT

Market Value Added (MVA) is the difference between the equity market value of a company and the book value of equity
invested in the company. A high MVA indicates that the company has created substantial wealth for the shareholders. MVA
is equivalent to the present value of all future expected economic value (EVA).
Fig in million Taka
Particulars Year-2020 Year-2019

Market Value of Total Equity 12,194.11 12,328.11
Less: Book Value of Total equity (9,380.08) (8,933.41)
Market Value Addition 2,814.03 3,394.70
Total number of Share outstanding 938,008,423 893,341,356
Book Value per share 10.00 10.00
Market value per share 13.00 13.80

FIVE-STEP DUPONT ANALYSIS
DuPont analysis is a useful technique used to decompose the different drivers of return on equity (ROE): net profit margin,
total asset turnover and financial leverage that will help us to avoid misleading conclusions regarding a company’s
profitability. In order to isolate operations and financial impacts on ROE, Net Profit margin is further broken down to
Operating profit margin, Effect of Non-operating items and Tax effect.
Particulars 2020 2019

ROE 08.78% 09.22%
Net Profit Margin 5% 5%
Contribution on Net Profit Margin:
a) Operating Profit Margin 15% 21%
b) Effect of Non-operating Items 04% 10%
c) Tax effect 5% 5%
Total Asset Turnover (times) 0.1 0.1
Financial Leverage (times) 20.68 18.89
Profit margin is a measure of profitability. It is an indicator of a company’s pricing strategies and how well the company
controls costs. Operating Profit Margin has been decreased in 2020 due to increased in profit paid to depositors. Negative
shift in operating profit margin is mainly responsible for lower ROE in 2020 compared to the previous year. However, Effect
of Non-operating Items has been decreased due to lower Provision required during the year. The combined effect of these
three factors shifted down the Net profit margin of the bank in 2020. However, as like previous year Total Asset Turnover
and Financial Leverage got an insignificant change in 2020. Having all the factors Return on Equity of the bank stood at
08.78% in 2020.

CHAIRMAN’S
FOREWORD
Bismillahir Rahmanir Rahim.
In the name of Allah, the Most Gracious and the Most Merciful, and peace and blessings be upon
our Prophet Muhammad (Sallallahu alaihi wasallam) and his descendants and companions.
Furthermore, we pray for salvation of the departed souls in this COVID-19 pandemic. May Allah
grand them highest place in Jannat.
Honourable Shareholders, respected members of the Board and my beloved Team SIBL,
Assalamu alaikum wa rahmatullahi wa barakatuhu.
It is my honour to appear before you and welcome you all to the 26th Annual General Meeting
of SIBL through Digital Platform. Alhamdulillah! We passed another year amid this pandemic
situation. In its 26 years of existence, Social Islami Bank Limited has epitomized the banking
landscape of Bangladesh with its innovation, efficiency, honesty, accountability, technology and
inclusive Banking. The Bank continues to grow with the values that were established since its
founding for a caring society and a bright and better future of the country.

ADVERSE BUSINESS ENVIRONMENT few sector where we see hope in this dark everlasting
pandemic situation.
The year 2020 has seen some unprecedented events that
has significantly affected the lives and businesses all over However, last year our Exports has decreased by 14.57%
the world. World saw a trade war between USA and China, to $ 33.60 billion compare to year 2019. Ii is assumable
Post Brexit challenges and the pandemic COVID-19. Many that Covid-19 lockdown has resulted in the export decline.
people lost their jobs, many businesses gone bankrupt. Also the import has gone down by 4.91% to $64.18 billion
Economy shrunken on a global scale. The world has compare to 2019. As the world economy mainly China
experienced its slowest pace in economic growth was under lock-down, our import hampered. This resulted
comparing last decades. Business activities has come to in slower growth in GDP. Bangladesh Bank statistics
a halt. We saw that a large number of population has gone showed that the net inflow of FDI in the first half of 2020
under the poverty line in this pandemic. Many people lost (calendar year) declined to $1.19 billion from $1.70 billion
everything after spending their savings. Corona virus in the same period of 2019. This shows how bitter the
pandemic has been impacting lives, businesses and economic situation is. First corona virus infection has
economies around the world. It is expected to adversely been identified in Bangladesh on 8th March, 2020. Since
impact the domestic and global economy. But there is a then, School, College and Universities are still closed.
hope that Covid-19 Pandemic situation will come under Business and institutions were shut down on several
control through awareness campaign and vaccination to occasion for a long period of time. Amid this downward
mass people. situation of our country, we are hoping to recover soon as
vaccination campaigns are underway by the government.
Our banking industry has achieved remarkable momentum
in the last few years. With the help of technology we try RESILIENT PERFORMANCE IN THE FACE OF
to provide the banking services at the doorsteps of our PANDEMIC
clients. The pandemic situation put the banking service
delivery infrastructure to the test. It is estimated that Despite the regulatory pressure on net profit margin,
cyber-attack damage will reach $6.00 trillion in 2021. In the flexible repayment facilities imposed by the authority,
year 2020 we have seen many global and local companies downward business trend amid Covid-19, SIBL has
including financial institutions were under cyber-attack in performed commendably in 2020. In the year 2020 our
the form of ransom ware, hacking, stealing identity and bank achieved several significant growth even in this
many more. Our banking industry is not out of this threat. adverse situation. Bank’s Asset grew from 34,505 crore
In order to fight these cyber-attack, we need to invest to 38,499 crore. The deposit has increased from 28,793
more in IT infrastructure. We need to build awareness crore to 32,238 crore. Along with deposit the investment
among our clients and overall in the community against has also increased from 26,426 crore to 30,061 crore.
the cyber threat that they are exposed to. Government It shows that despite the adverse situation we continue
and regulators must come forward to prevent such kind to work hard for the growth of this bank. Last year the
of cyber-crime with strict policies and laws. profit (after Tax and Provision) was increased to 155 crore
which was 152 crore in the year 2019.
NATIONAL ECONOMY
Single digit lending rate policy was formulated to boost-
However, despite negative growth of world economy up the economy of the country. This might help the
Bangladesh economy has registered a commendable economy but this has affected the whole banking sector
growth in 2020. While almost all the countries registered for the time being. However, we hope that the industry will
negative growth in GDP, Bangladesh’s GDP growth was overcome this situation in the coming years. Furthermore,
3.8% in FY 2020. We had the highest GDP growth rate in due to pandemic Covid-19 non-funded business
Asia. Bangladesh is moving forward to become a middle deteriorated severely which impacted the targeted profit
income country with per capita GDP reaching almost 2227 in 2020. All together with the support of the regulators we
USD. In 2020, foreign exchange reserve reached $45.00 had a moderate year in 2020. We are hoping that we will
billion compared to last year’s $32.69 billion. With this overcome all the obstacles in 2021 and may be able to
reserve the country is able to pay more than 6 month’s resume our regular business.
import payment. There are many countries like Malaysia,
Saudi Arabia and Kuwait are hiring Bangladeshi laborers ON THE WAY TO SUSTAINABILITY
again. Foreign remittance flow experienced significant
growth in FY 2020 reaching $ 18.3 billion highest in the 2021 will be challenging because the fight against the
history. Our expats are sending inward remittance more pandemic continues. We expect economic activity to
than ever in recent years. This is probably one of the normalize in many countries that are important for

our business, especially with the roll out of vaccination community. We have a range of advanced medical
programmers worldwide. We had a strong start to 2021 equipments to serve the patients with best possible
and we continue to expect our revenues to increase. medical care. In this Covid-19 situation SIBL Foundation
Inshallah we will be able to achieve sustainable growth in Hospital and Diagnostic Centre continues to provide better
the year 2021. healthcare service to Covid-19 patients.
And we continue to see opportunities for the coming years. OUR INITIAVES
We are well prepared for an economic environment which
is on the verge of becoming a middle income country. SIBL NOW is an internet banking service based on mobile
Even when the economy is facing major upheavals due application to provide the most innovative IT-based
to the current pandemic situation banking sectors are services to the clients. This technology based service of
being called on to support and help shape its recovery Social Islami Bank Limited gives our clients the opportunity
by providing Financial Stimulus Packages to the affected to transfer money, pay utility bills, recharge mobile balance,
clients. More than 1.20 lac crore Taka stimulus package for pay credit card bill etc. A client can execute transaction
different sector declared by the Government and disbursed from anywhere, anytime through internet facility enabled
through the industry. We hope that business are restarting mobile handset. We are constantly working for the up-
their efforts to start a new beginning in the face of this gradation of SIBL NOW.
Covid-19. We have a great prospect ahead of us to help
build the economy by facilitating the business, trade and SIBL Call Center is another initiative to serve the client’s
commerce. 24/7 through the hot-line number-16491. For any kind of
information regarding SIBL products and services, anyone
Social Islami Bank Ltd is firmly committed to our society. can call to the said hot line numbers to get the information
We believe that together we will achieve our goals to build more conveniently.
a brighter and better future for us. We need your support
in this regard. We believe that you will be by our side in the SIBL Internet Banking
years to come.
SIBL embraced Internet Banking a long time ago and
OUR SOCIAL OBLIGATIONS developing services around it. There are e-merchants
registered with SIBL and SIBL NOW mobile app. Moreover,
As a Shariah Based Bank, Social Islami Bank Limited is quite SIBL also provides services like BEFTN, RTGS, BACH
conscious of its social responsibility and always trying to (clearing), NPSB which are crucial in these days.
participate in social wellbeing of the country. The bank
has a dedicated CSR Desk with the aim to serve humanity SIBL introduced e-payment gateway to make Banking
through different philanthropic activities giving emphasis easier and smart. This gives a client the liberty to transact
on health, education, disaster management, rehabilitation, online, pay utility bills, credit card bills etc. This provides
poverty eradication and so on. The bank believes that any enormous opportunities to perform transaction with
kinds of social & philanthropic activities would improve the hundreds of affiliated platforms.
quality of the lives of the under privileged of the country.
SIBL TO MFS Fund Transfer
SIBL pioneers in CSR activities in the country. The extent
This service will allow SIBL account holders to transfer
of its activities ranges from individual distressed people to
fund to Mobile Financial Service (MFS) Provider (currently
institutional welfare. It spends a considerable sum every
bKash and Nagad) account using the mobile application –
year for wellbeing of the community. SIBL always seeks
SIBL NOW. SIBL account holders will use the mobile app
new areas where it can serve the necessary assistance.
by logging-in with SIBL i-banking and perform the transfer
SIBL rushes to any humanitarian crisis either flood, cyclone
securely.
or earthquake, fire before anyone with life-saving materials.
Over the years SIBL has donated a large some of amount CORPORATE GOVERNANCE
to the Prime Minister’s relief fund to help the less fortunate
communities. During the cold winter SIBL donated worm SIBL has earned and maintained public trust by ensuring
clothing among the distress and helpless all over the constant adherence to corporate governance Code. Your
country. The vision of SIBL is to create a caring society and Bank is always try to maintain good corporate governance,
it is tirelessly working for that. which promotes long-term interests of shareholders,
strengthens the Board and management accountability and
SIBL also established namely SIBL Foundation Hospital helps building public trust in the Bank. SIBL has separate
and Diagnostic Centre just to help the less fortunate code of conduct for its Board of Directors, Managing

Director & CEO and other high Officials as per guidelines
of CGC of BSEC. Bank’s holistic approach to value creation
is also reflected in its corporate reporting and the Bank
has continued to enhance the quality and acceptability
of its Integrated Annual Report. Bank’s commitment
towards transparent reporting was always commended
by its stakeholders and different Regulatory Authorities in
several times. Therefore, during the year under report, SIBL
closely observed all compliance issues including Shariah
and ensured all regulatory compliances timely.
Dear shareholders,
We have taken the year 2021 as a challenge with the

promise to increase the shareholders’ and stakeholders’
value. SIBL will be valued as a compliant Islamic
organization. By adopting new strategic business policy,
our Bank will leave no stone unturned to boost business in
all areas of operation to achieve our corporate goal in the
years ahead. SIBL emphasises on employment generation
and environment friendly green banking for equitable
distribution of resources over geographical territory for
sustainable growth of macro economy of the country.
The pro-active management team of SIBL is deploying
their talents, experiences & skills continuously to achieve
success in the performance of the Bank.
At the end, I would like to thank you all for your relentless
support during the year 2020. I would further recall and
express my deep sense of gratitude on behalf of the Board
to Bangladesh Bank, Bangladesh Securities and Exchange
Commission, other regulators, Shareholders, Stakeholders
and Well-wishers for their sincere support, cooperation and
guidance in our quest for excellence.
May Allah Subhanahu wa ta’ala bless us all with peace,

progress and prosperity. Stay home, Stay Safe.
Aameen.

Chairman
Board of Directors

When our clients needed us most, our teammates
redoubled efforts to help clients navigate the
changes and challenges of 2020 due to Covid-19
in new and creative ways: transitioning from
in-person to virtual interactions, using new
technologies and disbursing stimulus packages as
announced by government and circular issued by
Bangladesh Bank. Employees continued to provide
advice, guidance and access to all our capabilities
to help clients meet their financial needs.
MESSAGE FROM THE DESK OF THE

MANAGING DIRECTOR & CEO
Bismillahir Rahmanir Rahim
To Honorable Members of the Board of Directors, Shareholders and Clients,

To my teammates,
To leaders and partners in the communities we serve across the country
Assalamu Alaikum,
Wishing you a safe and sound life
It is my great pleasure to share with you the Annual Report-2020 of Social Islami
Bank Limited. Our report documents how your bank responded to the impacts-
both humanitarian and financial- of the global health crisis. The pages also tell the
story of how our bank came forward in new ways to deliver for our shareholders,
our teammates, our clients, our communities. I begin this message by thanking my
more than 4000 teammates and our senior management team. I thank them for
their extraordinary efforts over the past twelve months, and for everything they do to
support our clients, and each other, every day.

OUR RESPONSE TO COVID-19 Growth, we could serve our clients satisfactorily. That is a
credit to each and every member of our team, who work
In 2020, our bank rallied as we never have before to respond hard to serve our customers and clients- and exceed their
to the health and humanitarian crisis affecting individuals, expectations- in every interaction. In 2020, that included
families and business owners in the communities where far-ranging measures to support those impacted by
we live and work. Our services are essential to our clients the health crisis, through our own relief programs and
and to the economy. We’ve taken care of our teammates those provided by the government. At the same time, we
and their families, delivered for our clients when and remained focused on supporting the everyday financial
where they needed it most. And, together, we ended 2020 needs of millions of clients. With additional health and
stronger and more committed to the people and causes safety measures in place, our teams continued to serve
we care about. We are also working closely with regulators individuals and businesses across our nationwide network
including Bangladesh Bank in policy support appropriate of 168 branches, 79 sub-branches and 148 ATMs. I’d like
for this difficult times. SIBL disbursed government to offer a special thanks to my teammates in the financial
stimulus packages in a prompt manner to its customers centers who have played an essential role for our clients
to help minimize damage, restart, and bounce back of their and communities through this health crisis.
business.
OUR FINANCIAL PERFORMANCE AT A GLANCE
FOCUSING & DELIVERING FOR OUR CLIENTS
The principles of stakeholder capitalism are embedded
When our clients needed us most, our teammates in sustainable growth. We deliver for our clients, our
redoubled efforts to help clients navigate the changes and employees, our communities and our shareholders and,
challenges of 2020 due to Covid-19 in new and creative at the same time, do our part to deliver progress against
ways: transitioning from in-person to virtual interactions, society’s biggest challenges. This includes our work to
using new technologies and disbursing stimulus packages support the health and safety of our teammates, the many
as announced by government and circular issued by ways we help the communities we serve grow and prosper,
Bangladesh Bank. Employees continued to provide advice, our efforts to promote and economic opportunity and our
guidance and access to all our capabilities to help clients ongoing drive toward a clean energy future. Companies
meet their financial needs. In particular, teammates that pay close attention to environmental, social and
have been proactively reaching out to clients across all governance priorities are much less likely to fail than
businesses, including by sending SMS, emails and placing companies that do not, giving a significant opportunity to
outbound calls to SME & Corporates clients, holding build investment portfolios for the long-term. There is an
thousands of calls, meetings and broadcasts to actively important discussion underway about the role capitalism
advise and connect with clients through multiple channels. plays in our society and the ways in which it must evolve
In 2020, SIBL had a very clear mandate- to provide stability to ensure all participants in our economic system are
in a highly unstable environment for our customers, treated fairly and rewards are available equitably. Public
communities and colleagues. I believe we achieved that companies have an important role to play to help drive that
in spite of the many challenges presented by the Covid-19 discussion. At Social Islami Bank Limited, we embrace our
pandemic and heightened geopolitical uncertainty. Helping dual responsibility to drive both profits and purpose. And
our customers emerge from the Covid-19 pandemic in a we work with organizations and leaders around the country
sustainable position was our most pressing priority. We to champion these ideals and drive meaningful progress.
did this by equipping our colleagues to work from home at We need a way to measure that and in 2020 we made
the height of the pandemic, and keeping the vast majority substantial progress on that front, too.
of our branches, sub-branches and contact centers open.
Our investment in our digital capabilities- both in 2020 and Our investment portfolio grew by 13.75% during the year
in previous years- enabled our customers to access more in a favorable environment of liquidity in the industry. We
services remotely. We worked relentlessly with the stimulus prudently grew our portfolio with an emphasis on lending to
package announced by government as broad-based good borrower as well as reducing concentration risk. We
emergency supports to people and firms to protect them continued to focus on asset quality and exposure reduction
from economic fallout. We also played a vital role in keeping in identified areas to get better returns. However, in spite
capital flowing for our clients, arranging financing for both of fierce competition over deposits, our deposit growth
SME and corporate customers during 2020. Even in the also grew by 11.83%. We have been able to post a healthy
middle of the pandemic, we continued to look to the future. profit portfolio last year. SIBL registered an operating profit
Last year, thanks to the commitment of our teammates, of Tk.4605.32 million in the year 2020. Import business
the strength of our platform and our focus on Sustainable of the Bank stood at Tk.76,966.50 million in 2020 while
export business stood at Tk. 51,144.70 million in 2020.

Total foreign remittance was Tk. 13,175.88 million in of investment proposals within few minutes. I want to call
2020. Bank’s capital position also continues to be very out our technology and operations team, who showed
satisfactory. Capital of the Bank in the year under report creativity and excellence in execution by positioning a
stood at Tk.30,368.90 million which was Tk.27,901.80 certain number of our client-facing teammates to be able
million in 2019. We ended up the year with ROA 0.42%, ROE to operate in a work-from-home environment.
8.78% and EPS of Tk. 1.65 that signifies SIBL’s consistent
performance and commitment to the stakeholders. We BEING A GREAT PLACE TO WORK FOR OUR
have shifted our attention to commission and fee-based TEAMMATES
incomes. Our comprehensive effort and hard work made
our asset quality better. We could be able to rein our NPL Attracting and retaining the best talent is key to our journey
trend and it is moderate in the industry. towards excellence and one of our top priorities. It helps
us manage our operations, provide the best service for
ADOPTING ACCELERATED DIGITALIZATION DURING our clients and support our communities. We try to make
COVID-19: Social Islami Bank Limited a great place to work for all
teammates. And we fulfill this commitment by being a
For managing the transition to the new normal in pandemic diverse and inclusive workplace, attracting and developing
situation, we accelerated our digital initiatives, maintaining talent, recognizing and rewarding performance and
steady progress towards becoming the digital bank of supporting teammates’ physical, emotional and financial
choice for our customers. The year has underlined the wellness. Our workforce must reflect the communities we
absolute necessity of fully embracing digitalization in order serve. We have continued to make progress in our goal to
to support alternate ways to serve our customers. From ensure diverse representation at all levels of our bank and
SIBL’s perspective, the emergence of new businesses, twenty percent of our workforce is woman.
especially digital natives, will open up new credit financing
opportunities, going forward. Further, as we already had a We want our teammates to build long-term careers with
strong digital infrastructure, it was relatively easy for us to Social Islami Bank Limited. And that starts with a competitive
adopt split operations and mobilize work-from-home. Our starting wage and benefits. And we offer ongoing training
digital platforms also made it possible for our customers and development resources to help those teammates grow
to carry out more banking transactions online, without and thrive within our organization. We hire with a career
exposing themselves to unnecessary risk of visiting our mindset. And we work to reskill our teammates. To support
physical branches. One strong motivation in pursuing our our teammates during the health crisis, at work and at
digital agenda is the fact that it enables greater inclusivity. home, we expanded many of our benefits and resources.
We have enhanced the features of our SIBL NOW mobile app This included additional support for mental health and tele
and i-Banking service, which has emerged as a preferred consultation with our in-house doctor. As the pandemic hit,
interface with many of our customers. The second factor we knew our teammates were going to be under pressure
comprises our intention to enhance customer experience. at home. For most of them, home was their workplace on
Continuing to build on our portfolio of digital businesses, roster basis. In 2020, we came together to support one
we have launched many initiatives that helped avoid long another like never before. It was a great reflection of the
queues and crowded spaces at our branches, including the commitments, the compassion and the people that make
launch of a Call Center service that ensures that customers our company a great place to work.
get access to their services faster without any physical visit
to branches. Our valued customers can transfer funds from INVESTING IN OUR COMMUNITIES
their SIBL account to MFS accounts “bKash” and “Nagad” SIBL has been pioneering to uphold the well-being of
through SIBL NOW mobile app and internet banking service. the community. We deeply believe that leaving any
Customers can pay credit card bills, utility bills, recharge segment of our community out of development path no
their mobile bill using SIBL NOW from their smart device. true development as a whole can be achieved. Covid-19
Going forward, we have implemented e-Accounting service pandemic and subsequent financial crisis forced us to think
to allow opening up new bank account through online about our responsibility to the community afresh. From the
verification process. QR Cash withdrawal feature has been very outbreak of the deadly virus, we have been engaged
introduced with SIBL NOW app to allow clients withdrawing in all possible ways to help the affected community.
money from his account visiting any SIBL branch without To help address the impact of the coronavirus in our
placing any physical cheque at the counter. Anybody can communities, we donated medical equipment, PPE, mask,
cash out bKash money from any SIBL ATM booths. Our sanitizer, emergency medicine to a number of hospitals in
BPA (Business Process Automation) system under the the country during early April 2020. Our SIBL Foundation
Green Banking initiatives has accelerated approval process Hospital is working as a dedicated hospital for Covid-19

patients. The patients are availing covid-19 test and A NOTE OF GRATITUDE
treatment at a minimum cost, and the ultra-poor are getting
these facilities almost free. We are also extending financial I would like to express my deep sense of gratitude to the
support, food support and others to the people who have members of the Board of Directors for their continued
lost their jobs due to economic crisis. We also provided support and guidance. 2020 was a remarkable year in
smart phones and internet facilities to the underprivileged our journey towards excellence. I take this opportunity
students so that they can continue education through to thank our shareholders for their continued support.
online. The returned expatriates are also getting help in a A special note of appreciation goes to the outstanding
number of ways to create their employment opportunity. people I work with at SIBL, who remain both resolute in
their commitment, yet responsive to embrace the shifting
CSR is a noble opportunity to give back to the society environment in which we now operate. I would also like to
we operate in. The extent of our CSR activities ranges thank our valued clients for their continued loyalty, and for
from individual distressed people to institutional welfare. placing their trust in SIBL. May Allah bless us with another
SIBL has contributed a sum of Tk. 271.83 million in the sustainable and successful journey in 2021.
field of Health, Education, Disaster Management (Family
Rehabilitation), Sports, Art & Culture, Environment (Social May the blessings of Allah shower upon you.
Utility) & others during year 2020. As education is the key
Ma-assalam
to social and economic development it has got its due
importance in Sustainable Development Goals (SDGs). So
when it comes the issue of CSR activities from our Bank
we focus on education so that people can experience a
qualitative change in their life. In this regard we participated
in constructing school building, sponsoring school program
for the underprivileged students, paying teachers’ salary
and giving scholarship to meritorious but disadvantaged
students. During the period the Bank contributed Tk. 52.18
million as donation to the poor but meritorious students Quazi Osman Ali
and different academic institutions of the country to Managing Director & CEO
bear their different kinds of expenses. The bank believes
that any kinds of social & philanthropic activities would
improve the quality of the lives of the underprivileged of
the country. During the period the Bank approved Tk. 100
million for “Flood affected helpless and poor people” to the
Prime Minister’s Relief Fund as a part of its CSR activities.
In 2020 the Bank donated total Tk. 1.69 million to different
individuals to bear their medical cost, Tk.0.05 million for
Sports, Art & Culture, Tk. 117.43 million for Environment
(Social Utility) and others Tk. 0.48 million.
LOOKING AHEAD TO 2021

While we made a tremendous impact in supporting our
teammates, clients and communities in 2020, our work
isn’t finished. The health crisis continues to affect the
global economy as well as individuals and communities
around the world. Our focus now is what else we can do-
and how we can do it better. Throughout 2021 and beyond,
we remain resolute in how we meet our clients’ changing
needs, how we take care of our teammates and how we
help our communities move forward in meaningful ways.

MANAGEMENT REPORT BRANDING
SIBL is undoubtedly gaining momentum in its day-to-
& ANALYSIS day activities to implement the slogan “Journey towards
continuous excellence” by strengthening the Bank’s
financial capability to an international standard, increasing
the brand image, and by practicing high degree of planned
Bismillahir Rahmanir Rahim. corporate good governance.
I accept the chance to offer my true thanks to every
INFORMATION TECHNOLOGY
Shareholder, esteemed clients, distinguished Patrons and
Well-wishers. It involves amazing privilege to exhibit before The Bank has given due emphasis on the continuous
you the Management Report and Analysis on the different development of Information Technology (IT). In this regard,
aspects and exercises of Social Islami Bank Ltd. in the year some young and experienced professionals are working to
2020. explore the ideas of the cutting-edge, new IT products and
services so that our IT-based banking service can reach to
VISION the “banked and un-banked” people around the country.
Vision of this Bank is to minimize the poverty level in
GREEN BANKING
Bangladesh. In this regard, the inherent concept and
credence of “Working Together for a Caring Society” is The Bank has specially focused on green banking to
always held high. To carry forward this commitment, the safeguard the mother planet. The concept of Green Banking
personnel of SIBL are imbued with the highest degree of has been adopted by reducing paper work to a great extent.
enthusiasm, zeal and vigor to serve the society. More and more Green Banking activities have successfully
been done in 2020.
CUSTOMERS SERVICE
GETTING PRIORITY TO UNBANKED POPULATION
The Bank has focused on dignified, prompt and
personalized services to the customers. SIBL believes in Agent Banking activities usually operates through agents
developing strong interpersonal relationship. As such, under a valid agency agreement. The respective Agent is
the Bank is morally bound to provide high quality banking the owner of an outlet who conducts banking transactions
services supported by the latest technology to obtain on behalf of a bank. Agents can carry out transactions
optimum return on shareholder’s equity ensuring safety of on such accounts on behalf of customers. The business
depositor’s money and making all out efforts to introduce rules will be applied by the host system to the accounts
innovative Islamic Banking products to the existing and of customers. An Agency Banking platform lets agents
prospective customers. We are happy that SIBL could put in and withdraw money from their digital wallets with
give enough emphasis on empowering poor families various business rules. The facility agent carries out an
by creating income opportunity and providing financial administrative role in relation to the facility. It supports
support to make them self-reliant. The Bank considers that various types of transactions, such as cash withdrawals,
services to be of utmost importance to improve the fate of cash deposits, transfers, foreign remittance payment, bill
deserving people in our society. Now, SIBL has been able payments of various types, investment / loan repayments,
to extend more comfortable services to the valued clients account balance queries, and more. Accounts can be
such as any branch banking, 24/7 services ATM services, opened in the single name of the illiterate person using
VISA Debit and Credit Card, SMS Banking, Internet Banking, thumb impression. The Authorized Officer of the Bank
Agent Banking, Electronic Fund Transfer, Central Clearing would compare the Photo and thumb impression available
facilities, and the like. These services have surely added in the Bank’s record and allow withdrawal of the money
new dimensions and have offered new and advanced from his/her account. Customers of the Agent Outlets may
means of banking to the clients. be allowed to avail Cheque book facility on case to case
basis. Within just one-and-a-half years of its inception,
SIBL is looking forward to expand its area of operation from
agent banking has been able to attract a huge number
urban to rural by introducing new customized products and
of clients, forcing 28 commercial banks to take up this
services that are tailored to different economic class of
alternative form of financial service in addition to branch-
people of the society in order to bring the un-banked people
based banking. According to the agent banking guideline
into banking channels.
the software of any individual agent will be connected to
the core software of the bank, so transactions that will take

place in agent premises will be shown in the banking system real-time and those transactional statements can be used
anywhere and everywhere for different purposes of the client.
Social Islami Bank Limited (SIBL), a second generation Private Commercial Bank, started its operation since 22nd November,
1995 based on Shariah Principles. From the inception SIBL is indeed a concept of 21st century participatory three sector
banking model, i.e. formal sector, non-formal sector and voluntary sector. Irrespective of Socio-Economic Development
and the inclusion of financial activities, in the month of September 2015, Social Islami Bank limited started its journey as a
Shariah based Bank through introducing Agent Banking services. SIBL Agent banking is controlled by SIBL Agent Banking
Division an individual and separate division situated in the 21st floor of SIBL Head office, City Center, Motijheel, Dhaka.
Since inception, SIBL have already established 162 outlets throughout the country by sincere effort of the Agents. As a
result these 162 outlets are serving the customers simultaneously with the branches of the bank around the country.
As on 31 December 2020 the total deposit portfolio stands at BDT225.00 crore and total number of account reached 68541.
Amount of Deposit
2,500,000,000.00
2,000,000,000.00
1,500,000,000.00
1,000,000,000.00
500,000,000.00
-
2017 2018 2019 2020
No of
No. of No of No of Total No Deposit Amount Remittance
Year AWCD
Outlet MSD A/C MTD A/C of A/C in BDT Amount in BDT
A/C
2017 66 18288 80 802 19170 BDT1.80 crore BDT0.45 crore
2020 152 56450 1,231 10860 68541 BDT225.00 crore BDT84.11 crore
2021[as on 16-05-2021] 162 73575 1,583 14679 89837 BDT292.28 crore BDT66.00 crore
Projection for 2021 214 - - - 100000 BDT400.00 crore BDT200.00 crore

Though substantial progress has been made in the area of at their doorsteps in the remote area, and it has made
agent banking in terms of the number of agents, account- convenient and easy for channeling remittance.
holders and deposits, there are a number of challenges
confronting the growth of this new tool of banking. The HUMAN RESOURCES DEVELOPMENT
BIBM research paper identified seven challenges for banks.
The Bank has regularly arranged in-house and outside
The challenges are: training programs for the professional development (PD)
of the employees so that they can acquire the current,
A. Selection and monitoring of agents advanced level banking knowledge and face the challenges
of the modern banking. The role of our Human Resources
B. Cheque book issue and clearing cheque Division (HRD) is praiseworthy and it is truly the core
C. Limited transaction time strength of the Bank.
D. Power failure SIBL always recognize its personnel by awarding most

competitive pay scale and incentives including different
E. Cash carrying or management risk types of long-term benefits. Depending on the market and
growth of the Bank, the Bank reviews the pay structure on
F. Physical and cyber security and a regular interval basis. Performance of the employee is
determined through annual employee rating i.e. Annual
G. Settlement of complaints. Confidential Report (ACR) and Key Performance Indicator
Out of 140 countries, Bangladesh stands at both the (KPI) systems. Deserving employees are rewarded under
95th and 89th position on availability and affordability of a performance-linked award system with accelerated
financial services respectively. As per World Bank Global promotion.
Financial Index Database, 41% of the adults in Bangladesh
COMPLIANCE
have Bank Accounts with different Banks. While about
24% of the population has saved money in the past, only Management of the Bank very closely observes the issues
10% have saved through a formal financial institution. related to regulatory compliances including Islamic
Agent banking is playing a pivotal role to provide limited Shariah. To guide the Shariah matters of the Bank, there is
scale banking and financial services to the unbanked & a Shariah Supervisory Committee Secretariat (SSCS). The
underserved population. Although the central bank issued SSCS members are highly qualified and competent people
an agent banking guideline in 2013, the first banks started in Islamic Laws, Islamic Economics, Islamic Banking and
full-fledged agent operations in 2015. The business took Finance. Shariah Supervisory Committee Secretariat is
off almost immediately, with 544,536 accounts opened very active and vigilant over the day-to-day activities of
with deposits of BDT380.68 crore opened between the Bank being conducted strictly in line with the Islamic
October and December that year. Initially it was started Principles. SIBL is committed to be one of the leading
with 10 banks and now 19 commercial banks are running banks with the development and practices of compliance
agent operations. Among them Social Islami Bank culture in every sphere. The Bank always put its all-out
Limited, Dutch-Bangla Bank Limited (DBBL), Bank Asia efforts to be compliant in all aspects of banking operation
Limited, Al-Arafah Islami Bank Limited, and Islami Bank and controlled all the major financial indicators.
Bangladesh Limited is dominating in the market. Agent
banking has been able to get such popularity mainly for
its simplicity to the clients and cost-effectiveness for the
banks. According to a research paper titled, “Alternative
delivery channel: Opportunities and challenges of the new
banking environment” by Bangladesh Institute of Bank
Management (BIBM), agent banking has become popular
because of its benefits for both the banks and clients, while
the country’s economy is also being benefited through
financial inclusion. According to the paper, the banks have
been able to increase customer volume, improve financial
appearance, lower operating costs, expansion of business,
increase deposit collection, improve banks’ branding
and widen their spreads. Agent banking has facilitated
customers by providing full-fledged banking services

The Key Financial Indicators Limit and Utilization as on 31st December 2020 are given below:
Name of Unused/
Particulars Limits Utilization/ Maintain
the Month (Excess)
Standard ID ratio for Islami Bank Mar 94.17% -2.17%
Investment and Deposits is 92%. Social Islami Bank is June 91.56% 0.44%
Ratio (ID Ratio) always optimistic to maintain 92% Sep 91.77% 0.23%
throughout the year. Dec 90.65% 1.35%
On the basis of historical tend Mar 86.90% 3.10%
analysis and considering the June 89.27% 0.73%
MTF Ratio (Liability mature>
short term liability matching and Sep 89.53% 0.47%
1year / Assets mature> 1
profitability as well, standard
year
Medium Term Funding (MTF) ratio Dec 89.51% 0.49%
has set from 50% to 90%
Mar 13.35% 5.65%
Maximum Cum. Outflow
June 13.69% 5.31%
(Net outflow up to 1 Month 19% of the Balance Sheet Amounts
Sep 14.53% 4.47%
bucket)
Dec 15.17% 3.83%
Mar 50.07% 29.93%
June 62.38% 17.62%
Wholesale Borrowing 80% of bank’s eligible capital
Sep 51.40% 28.60%
Dec 69.42% 10.58%
Throughout the month, SLR & CRR
were maintained above 05.50 % &
Surplus of SLR + CRR was
Mar 5.50% res. Required SLR was Tk.
Tk. 213.73 Crore
1503.66 Crore & CRR was 1503.66
Crore.
The Bank is required to maintain were maintained above 05.50 % &
5.50 % SLR on Time and Demand June 4.00% res. Required SLR was Tk.
Tk. 1221.02 Crore
Liability and to maintain a minimum 1508.28 Crore & CRR was 1096.93
Statutory Liquidity Ratio
credit balance with the Bangladesh Crore.
(SLR) & Cash Reserve
Bank (including BB TT in transit) @ Throughout the month, SLR & CRR
Requirement (CRR)
5.50 % CRR on Time and Demand were maintained above 05.50 % &
Liability on fortnight basis and Sep 4.00% res. Required SLR was Tk.
Tk. 811.27 Crore
5.00% on daily basis 1537.10 Crore & CRR was 1117.89
Crore.
were maintained above 05.50 % &
Dec 4.00% res. Required SLR was Tk.
Tk. 1866.15 Crore
1640.27 Crore & CRR was 1191.45
Crore.
Mar 186.94% 86.94%
Liquidity Coverage Ratio The minimum standard for LRC June 153.10% 53.10%
(LCR) shall be greater than 100. Sep 174.14% 74.14%
Dec 152.77% 52.77%
Mar 125.13% N/A
Net Stable Funding Ratio The minimum standard for NSFR June 128.67% N/A
(NSFR) shall be greater than 100. Sep 134.01% N/A
Dec 128.51% N/A
Mar 4.99% 1.99%
The minimum standard for Leverage June 4.52% 1.52%
Leverage Ratio
ratio shall be greater than 3.00%. Sep 4.50% 1.50%
Dec 4.82% 1.82%
The Bank is required to maintain a Mar 13.06% N/A
minimum Capital of Tk 400 Crore June 12.60% N/A
Capital to Risk Weighted or equivalent to 11.875% of total Sep 12.54% N/A
Asset Ratio (CRAR) risk weighted assets (including
conservation buffer) whichever is Dec 13.50% N/A
higher

CAPITAL MANAGEMENT ASSETS LIABILITY MANAGEMENT
Revised Risk Based Capital Adequacy (RBCA) guideline Activities of the Assets Liability Management of the Bank are
in line with Basel III implementation phase was started in mostly visible in proper liquidity planning and in matching
2015. During the year under review, Management of the of assets liability-gap despite the existence of volatile
Bank was even more cautious in proper risk management of money market. To mitigate the investment risks, the Bank
the Bank. The Bank has successfully maintained the Capital has adopted some massive changes in the investment
to Risk Weighted Asset Ratio (CRAR) of 13.50% as against processing, sanctioning, approval and monitoring system
the required CRAR of 12.50% including conservation buffer as per core risk guidelines of the Bangladesh Bank. Some
under BASEL-III capital accord. well-known corporate business houses and individuals of
the country have joined with us as our business partners.
01. Maintaining minimum capital requirement against
major risks under Pillar I of Basel III: CORPORATE SOCIAL RESPONSIBILITY
Minimum capital requirement is calculated considering This year, under Corporate Social Responsibility (CSR)
credit risk, market risk and operational risk on which the activities of the Bank Taka 271.83 million was spent under
bank is exposed to. The required and maintained capital of Health, Education, Sports, Disaster Management and
SIBL against these risks for the year 2020 is summarized Environmental programs which was Taka 297.33 million in
below: 2019. This is a reaffirmation of the commitment of SIBL
towards the society.
Figure in Million Tk
Risk Weighted Assets RWA Capital SME & AGRICULTURAL INVESTMENT
(RWA) for Requirement
Due emphasis was given on SME and Agricultural Financing
A. Credit Risk 203,056.96 20,305.70 that stood at Taka 63,994.64 million in 2020 as compared
B. Market Risk 1,782.80 178.28 to Taka 65,716.40 million in 2019.
C. Operational Risk 20,180.85 2,018..08
PERFORMANCE OF THE BANK
Total: RWA (A+B+C) 225,020.62 22,502.06
Capital Maintained 30,368.90, The Banking sector has achieved a slow growth and was
under pressure due to different adverse issues throughout
Capital Surplus 7,866.84
the year 2020. Despite manifold challenges, the year
02. Maintaining adequate capital requirement against all 2020 was quite eventful at home and abroad for SIBL
risks (risk profile) under Pillar II of Basel III: and alhamdulillah our Bank maintained and achieved a
stable position in all key areas of its operations. This year
Adequate capital is needed to be maintained considering SIBL has joined the “168 Branches Club”. Out of the 168
the risk profile of the bank under Pillar II of Basel III. In case Branches, Performance in 2020 of some branches may be
of Bangladesh, generally the following risks are considered mentioned as under:
for maintaining additional capital requirement under
supervisory review process (SRP): • 37 (Thirty Seven) Branches achieved 100% and above
Deposit Target
• Residual Risk
• Concentration Risk • 41 (Forty One) Branches achieved 100% and above
• Liquidity Risk Investment Target
• Reputation Risk
• 18 (Eighteen) Branches achieved 100% and above
• Strategic Risk
Foreign Exchange Business Target and
• Settlement Risk
• Evaluation of Core Risk Management • 23 (Twenty Three) Branches achieved 100% and above
• Environmental & Climate Change Risk Profit Target as set out for the year 2020
• Other material risks.
To assess the capital charge for the above risks Bangladesh

Bank has given a guideline and instructs the banks to
develop and Internal Capital Adequacy Assessment
Process (ICAAP). Adequate capital has been maintained
considering overall risk profile of the bank.

SIBL INTERNET BANKING (SIBL NOW) SIBL STUDENT ACCOUNT
Internet Banking facilitates managing money anytime and Today’s youngsters are going to be the future business
anywhere. Presently provide following features through personalities of the country. That’s why SIBL Student
our Internet Banking for our clients which will be enhanced Account has been introduced with a view to raising savings
gradually: tendency among school-going children from childhood.
Features • The beneficiaries are entitled to daily profit on daily

balance, which directly adds to the account.
• Fund transfer - intra-bank & interbank via (RTGS, EFTN,
NPSB). • There is no need to keep minimum balance to run the
• Utility Bill Payment - WASA, DESA, DESCO, DPDC, scheme.
TITAS etc. • The scheme holders shall be provided annual charge
• Credit Card - outstanding, limit view, PIN change, Bill free Debit card of the bank
payment.
• The account holders shall be given attractive gift
• Mobile top-up. hampers at the time of opening the account.
• Account Summary - mini statement, balance inquiry,
transaction history. • With the help of school authority and the bank,
the students can save money at the institutions in
• Positive Pay instruction. presence of bank’s executives.
• Standing instruction for own account.
• After opening SIBL Student Account, the students can
• Cheque Requisition, Cancelation & Status tracking. pay school-fees through balance transferring from
• Investment account outstanding, EMI Calculator. their account.
• Two factor Authentication. • SIBL Student Account holders desiring to achieve
• SIBL product list. higher education in future would get investment
• ATM & Branch Locator. facility from the bank
• Notification - SMS.
SECURITY ISSUES OF SIBL INTERNET BANKING

To secure against Internet fraudsters there should be
continuous effort and awareness practice. We have
implemented SSL security certificate for ensuring secured
transaction over internet and secured our environment.
Personal awareness of internet banking users can reduce
many of internet banking threats. We want to help our
customers to better protect themselves against potential
Internet threats.

BUSINESS ANALYSIS
Cost of Fund of the Bank for the year 2020 was 8.86 % while total overhead cost was 1.98%. Earning Yield was 9.86% and
finally accumulated a spread was 1.00 %.
HORIZONTAL/ VARTICAL ANALYSIS

Operating performance (Income Statement) Analysis
Year 2020 Year 2019

Sl. Particulars
Amount % of total Amount % of total
1 Total Revenue / Operating Income:
i) Investment Income 26320.28 88.17% 27138.72 88.37%
iii) Profit from Bank Deposit 715.99 2.40% 658.71 2.14%
ii) Investment Income shares & securities 762.38 2.55% 760.57 2.48%
a) Sub-total : Funded Income (i+ii) 27798.65 93.13% 28558 92.99%
iii) Commission 646.37 2.17% 682.43 2.22%
iv) Exchange Gain 774.84 2.60% 783.4 2.55%
v) Other Income 631.01 2.11% 687.3 2.24%
b) Sub-total: Non-Funded Income (iii+iv+v) 2052.22 6.87% 2153.13 7.01%
c) Total: Operating Income {1(a) + 1(b)}/ Total Revenue 29850.87 100.00% 30711.13 100.00%
2 Operating Expenditure:
i) Exp. against Customers’ Deposit 18,479.41 72.45% 16,601.17 68.12%
ii) Exp. for Bank Deposit 1,005.38 3.94% 1,827.38 7.50%
a) Sub-total: Profit Expenses (i+ii) 19,484.79 76.39% 18,428.55 75.62%
iii) Salary & Allowances 3567.61 13.99% 3395.57 13.93%
iv) Other Operating Expenses 2455.26 9.63% 2544.89 10.44%
b) Sub-total: Administrative Expenses (iii+iv) 6022.87 23.61% 5940.46 24.38%
c) Total: Operating Expenditure {2(a) + 2(b)} 25,507.66 100.00% 24,369.01 100.00%
3 Operating Profit/ (Loss) {1(c ) - 2 (c )} 4,343.21 6,342.12
4 Proft before tax 3040.65 3134.03
5 Proft after tax 1550.94 1521.45
6 EPS (Taka) Restated 1.65 1.62
BALANCE SHEET ANALYSIS

Figure in million Taka
Sl. No. Particulars Year 2020 Year 2019 Year 2018 Year 2017 Year 2016
1 Shareholders Fund 18,038.39 17,271.33 15,749.88 14,166.45 14,187.80
Property, Plant &
2 4,431.01 3,606.05 3,563.53 3,480.82 3,257.52
Equipment
3 Net Current assets 5,318.23 5,265.09 4,863.71 4,870.20 5,421.97
Long Term Liabilities/
4 0.375 0.394 0.364 0.345 0.325
Current Liabilities

SOME IMPORTANT RATIO ANALYSIS
To understand the bank’s trend, some important ratio analyses are tabulated below:
1st Quarterly Half-yearly 3rd Quarterly

Yearly (%)
Analysis (%) (%) (%)
Mar-20 Jun-20 Sep-20 Dec-20
Profitability Ratios:
Return on Average Assets*(Net Profit after tax/Average Assets)*100 0.41% 0.26% 0.27% 0.42%
Return on Average Equity *(Net profit after tax/Average Equity)*100 8.05% 5.19% 5.42% 8.78%
Earning per share ( EPS) (Taka) * 0.39 0.51 0.76 1.65
Efficiency/Activity Ratios: (Rate of Return Risk)
Net Investment Income = Total Profit income - Total Profit expenses 159.45 309.49 482.80 755.15
Net Investment Margin (NIM)= (Net Invest. Income/Avera. Earning Assets)*100 2.15% 2.06% 2.09% 2.43%
Earning Assets/Total Asset 88.14% 85.71% 87.71% 85.66%
Efficiency Ratio(Total Overhead cost/ Total operating income)*100 63.21% 65.06% 66.62% 58.10%
Overhead Ratio*(Total Overhead cost/Total Assets*100) 1.66% 1.56% 1.61% 1.56%
Effective Average Cost of Deposit 7.33% 6.95% 6.62% 6.88%
Cost of Fund 9.07% 8.73% 8.46% 8.86%
Effective Average Earning Yield 9.78% 9.31% 9.02% 9.86%
Liquidity Ratios: (Liquidity Risk)
Investment Deposit(client) Ratio (ID Ratio)(Investment/Client Depo.*100 94.17% 93.30% 89.98% 90.65%
Liquid Assets Ratio (Liquid Assets/Total Assets)*100 8.99% 11.28% 9.79% 11.45%
LCR 186.94% 153.10% 174.14% 152.77%
NSFR 125.13% 128.67% 134.01% 128.51%
Maximum Cumuliative Outflow (MCO) 13.35% 13.69% 14.53% 15.17%
Stable Fund Ratio(Saving Deposit/Total Client Deposit)*100 8.94% 10.29% 10.72% 11.23%
Dependency Ratio(Bank Deposit& Borrowings/T.Deposit& borrowing)*100 4.89% 8.66% 5.11% 7.10%
Snap Liquidity Ratio (Liquid Assets/ Total External Liabilities) 9.48% 11.87% 10.29% 12.01%
Liquid Assets/ Short term liabilities 30.51% 35.94% 29.39% 41.88%
Liquid Assets/ Total Deposit 10.86% 13.53% 11.65% 13.67%
Short Term Borrowings/ Liquid Assets 1.63% 4.95% 0.00% 0.00%
Volatile Deposits/ Total Assets 3.88% 4.24% 4.62% 4.68%
Capital Adequacy Ratios:
CET 1 8.40% 7.77% 7.75% 7.76%
Tire I Ratio 8.40% 7.77% 7.75% 8.43%
Tire II Ratio 4.66% 4.83% 4.79% 5.07%
Risk Weighted Capital Adequacy Ratio (RWCAR) 13.06% 12.60% 12.54% 13.50%
Shareholders Equity to Total Deposit & Borrowings (Equity/Deposit &
6.24% 5.90% 5.85% 5.60%
borrowings)*100
Internal Capital Genaration Ratio (Net profit afterTax/Equity)*100 7.97% 5.13% 5.32% 8.35%
Asset Quality Ratio:
Ratio of Classified Investment(Classified Investment/Net Investment)*100 6.40% 6.25% 6.00% 6.05%
Ratio of SMA Investment(SMA Investment/ Net Investment)*100 3.08% 4.50% 4.39% 4.31%
Gross NPI Ratio(Classified Invest.-Profit Suspense/Investment-F.Provision)*100 5.56% 5.41% 5.10% 5.08%
Net NPI Ratio(Classified Invest.-Profit Suspense-CL Provision/Investment-F.
1.91% 1.84% 1.70% 2.40%
Provision-Profit Suspense)*100
Gross NPI Coverage Ratio(Total CL Provision/Classified Invest.-P.Suspense)*100 66.01% 66.49% 67.06% 53.43%
Investment (Shares & Securities) Risk:
Market Value Vs Cost Price of quoted Investment 87.80% 103.61% 109.44% 108.26%
Investment Portfolio ( Shares & Securities) /Total Equity Capital 105.21% 98.26% 101.39% 102.49%

PROFITABILITY / DIVIDENDS/PERFORMANCE AND
LIQUIDITY RATIOS
Gross Profit Ratio (%) 57.47 71.12
Price earnings Ratio (%) 7.86 8.10
Current Ratios (%) 1.02 1.03
Return on Capital Employed (%) 8.78 9.21
Debt Equity Ratio (%) 17.87 16.67
LIQUIDITY POSITION ANALYSIS

During the year under review, net cash inflow as stated in the Cash Flow Statements as on 31st December, 2020 which is
noted below:
Figure in million Taka

Particulars Year 2020 Year 2019 Year 2018 Year 2017 Year 2016
Net Cash flow from Operating activities 3,612.83 18,322.04 (9085.34) 5,780.21 751.34
Net Cash flow from Investing activities (1,325.46) (353.73) (367.19) (485.68 (414.30)
Net Cash flow from Financing activities (346.67) (9,400.00) 7,400.00 3,923.40 945.29
Net Increase / decrease in Cash & Cash equivalents 1,977.95 8,622.76 (1,986.77) 9,217.93 1282.33
Opening Cash & Cash Equivalents 42,097.16 33,474.41 35,461.18 26,410.97 25,128.64
Closing Cash & Cash Equivalents 44,075.11 42,097.16 33,474.41 35,461.17 26,410.97
The major components of net cash flows from operating activities are operating profit by eliminating the effect of
depreciation and provisions. Net cash flow was positive due to increase in Deposit procurement, rescheduling of some
major investments as well as recovery.
The liquidity statements of the Bank show that the bank has been maintaining an effective maturity profile of its total assets
and liabilities in short term and long term in a structured way. The liquidity gap maintained by the Bank is satisfactory.

OUTLOOK 2021 • Increase in provisioning requirement may reduce the
ROA and ROE
To make the year 2021 another success, SIBL is ready to
• Reduction of the margin ratio for investment accounts
accept the challenges of 2021 with new visionary zeal to
achieve the common objectives of the Bank and hence the • Volatility in profit rate
year 2021 will definitely be a challenge for every individual • Volatility in capital market arising from speculations
of SIBL. Considering the stands and commitments towards
stakeholders, SIBL has prepared financial budget for the • Compliance issues raised by the international forums
year 2021, which is realistic and challenging. which are likely to affect the export growth
• Rise in international prices of essentials which may
The Business Target for the year 2021 is featured by result to volatility in Foreign Exchange Market
setting of-
• International embargo/unrest may affect remittances
• Client Deposit Tk. 370,000.00 million and trade
• Investment Taka 326,500.00 million • Adverse media reporting.
• Foreign Exchange Business Taka 210,500.00 million Nevertheless, the success of SIBL in 2020 clearly affirms
• Operating Profit Taka 8,000.00 million. that this Bank is ready to accept challenges of the future.
In sha Allah, SIBL’s momentum of growth of business and
To achieve success in the year, SIBL has undertaken the profitability will be maintained definitely in 2021 and the
following short-term strategies side by side mid-term and years to come.
long-term strategies:
• Strengthening the automation procedures of the Bank

• Increasing ATM facilities
• Opening new Branches in important urban/rural areas
of Bangladesh
• Increasing new AD Branches
• Enhancing the CSR activities in line with the Bank’s
CSR policy
• Conducting special recovery drive
• Conducting special programs for business like ‘Seba-
Mash’
• Exploring business opportunities in SME sector
• Presenting innovative and new deposit & investment
products to the customers.
Some factors may cause actual results to differ and some

may significantly deviate from the outlook 2021. Some of
the factors that may affect the business environment are
given below:
• Changes in the general economic condition resulting

from natural calamities and political disturbances
• Changes in government policy issues
• Increase in corporate tax rate
• Increase in CRR and SLR of the banks
• Withdrawal of incentive given to some thrust sectors
which may make the projects slow moving
• Directives to reduce the lending rates to finance
essential items

REPORT ON INTERNAL CONTROL SYSTEM
The Board of Directors of Social Islami Bank Limited is very keen to establish and maintain a sound and effective Internal
Control System and good governance in every sphere of the Bank. Accordingly, they have established broad business
strategies, adopted significant policies for internal control and risk management and implemented risk based internal
audits as per Section 15 kha of Bank Companies Act-1991 (amended uo to 2018) for ensuring that the Bank is appropriately
and effectively managed and controlled.
During the year under review, the Board has reviewed the policies and procedures of various aspects of businesses in
order to establish an effective internal control system which, the Board thinks, is adequate and appropriate for achieving
sustainable growth.
The Board of Directors monitors the adequacy and effectiveness of Internal Control systems through the establishment
of Audit Committee and the Committee has regularly reviewed and assessed the arrangement adequacy made by
management and corrective measures taken by Management relating to fraud-forgery and deficiencies in internal controls.
Internal Control & Compliance Division (ICCD) of the Bank continuously inspects the operational aspect of the Bank and
report deviations and all such findings along with compliance status were placed by the Management before the Board of
Directors and regulators on a timely basis and have performed all other functions relating to Internal Control Systems of
the Bank.
The Board of Directors have established whistle blowing policy and reviewed the control procedures for ensuring – (i)
safeguarding the Bank’s asset (ii) prevention and detection of fraud and error (iii) adequacy and completeness of accounting
records (iv) timely preparation of financial information and (v) the efficient management of core risk.
The Audit Committee has ensured that all the conditions of the Bank Company Act, Bangladesh Bank guidelines, Corporate
Governance Code issued by Bangladesh Securities and Exchange Commission (BSEC) have been properly addressed.
Internal control system, managing of core risks and Bank’s process for monitoring compliance with laws and regulations
and codes of business conduct were adequate.
The Board of Directors of the Bank declares that they have actively and diligently discharged their duties and responsibilities
to establish a sound internal control system and to ensure good corporate governance.
On behalf of the Board of Directors

Chairman
Board of Directors

Dear respected Shareholders,
It is my great pleasure to welcome you all on behalf of the Board of Directors to

the 26th Annual General Meeting of Social Islami Bank Limited and to present
before you the Directors’ Report along with the audited financial statements
as on 31st December 2020 for your kind information. The board would like to
mention some of the salient performance of the Bank during the year 2020 in
the backdrop of Global and Local economic, political, environmental scenario
and the effects of Covid-19 on them.

Global Economic Outlook Digital processes are becoming ever more embedded in
production and trade as information and communication
World Economy technology (ICT) services control business processes and
facilitate transactions within networks and between firms
The global economy will estimated to grow by 5.4% by
and customers. New technologies, such as 3D printing and
UN and 6.0% by IMF in 2021. Additional policy support
additive manufacturing, have the potential to fundamentally
announced for 2021, mainly in the advanced economies, is
alter business models and redefine comparative advantage
expected to help in lifting economic activities with favorable
by facilitating scale-independent efficient production and
spillover to trading partners. However, pace of recovery is
bringing production systems closer to consumers. In the
likely to vary significantly across countries, depending on
medium term, such developments could support restoring
access to vaccine, effectiveness of policy support.
trends by increasing the competitiveness of previously
To protect financial system and economy, policy makers noncompetitive production locations and by encouraging
across the globe have taken unprecedented measures a shift from the traditional model of economies of scale
to bring it on track. Though recovery in China has been of large plants serving global markets to networks of
faster than expected, the global economy’s rebound to pre- smaller, more flexible and geographically distributed
pandemic level of activity remains prone to setbacks. After plants. Moreover, digitalization and emerging technologies,
ease of lockdown global trade started to pick up in June including artificial intelligence and machine learning, are
where China was a major contributor. In the second half also transforming service delivery worldwide. They will
of 2020 financial condition started to ease for advanced increasingly facilitate the cross-border exchange of health,
economies and for most emerging market and developing education and other services, reinforcing the growing
economies. This pandemic has increased inequality importance of services in global trade and development.
globally by pushing more people below poverty line mainly
Bangladesh Economic Review
those who live on daily wage and are migrant workers.
Economic growth
After an estimated contraction of –3.3 percent in 2020, the
The past decade Bangladesh’s economic growth has steadily
global economy is projected to grow at 6 percent in 2021,
increased from 6 percent to 8 percent. The global novel
moderating to 4.4 percent in 2022. The contraction for
Coronavirus (COVID-19) pandemic has adversely affected
2020 is 1.1 percentage points smaller than projected in the
the economy of Bangladesh. According to the provisional
October 2020 by World Economic Outlook (WEO), reflecting
estimates of the Bangladesh Bureau of Statistics (BBS),
the higher-than-expected growth outturns in the second
GDP growth in FY2019-20 stood at 5.24 percent, compared
half of the year for most regions after lockdowns were
to 8.15 percent in the previous fiscal year. Growth in
eased and as economies adapted to new ways of working.
export and import in FY2019-20 is negative. However,
The projections for 2021 and 2022 are 0.8 percentage
remittance inflows grew by 10.87 percent has reduced
point and 0.2 percentage point stronger than in the October
the current account deficit compared to the previous
2020 WEO, reflecting additional fiscal support in a few large
fiscal year. At the same time, the increase in capital and
economies and the anticipated vaccine-powered recovery
financial account inflows has led to a surplus in the overall
in the second half of the year. Global growth is expected to
balance of payments. As a result, the foreign exchange
moderate to 3.3 percent over the medium term—reflecting
reserves have increased significantly. During this period, a
projected damage to supply potential and forces that
marginal depreciation in exchange rate of Taka with the US
predate the pandemic, including aging-related slower labor
dollar is being observed. To keep the country’s economy
force growth in advanced economies and some emerging
afloat in the face of the ongoing Coronavirus pandemic,
market economies. Thanks to unprecedented policy
extra spending on healthcare, emergency humanitarian
response, the COVID-19 recession is likely to leave smaller
assistance has been materialized. The government has
scars than the 2008 global financial crisis. However,
already announced a financial package of about Tk. 1.2 lac
emerging market economies and low-income developing
crore for economic recovery. Some of the notable activities
countries have been hit harder and are expected to suffer
of this package are: create special funds for export oriented
more significant medium-term losses.
industries; provide working capital facilities to the affected
Across the globe, COVID-19 has created rapidly growing industry and service sector organizations; provide working
demand for digital services, accelerating ongoing capital facilities to small (including cottage industries) and
digital transformation. With lockdowns and movement medium industrial enterprises; increase the benefits of
restrictions in place, operating digitally has been the the Export Development Fund; increase coverage of social
only viable option for many firms to stay in business security; direct cash transfer to targeted people, formulate
and government agencies to perform their functions. various funds for the agricultural sector. As well as financial

incentives, various activities including policy support such due to the COVID-19 pandemic. Point to point food
as reduction of import duty on COVID-19 related products, inflation moderated to 4.9 percent in March 2020 with
policy support to increase liquidity in the banking sector minor fluctuations from 5.4 percent of June 2019 due to
has been provided. As a result of this initiatives and lifting adequate supply of food while there was a pickup of 6.5
of holidays the economy has started to recover and thus percent in June 2020 caused by disruption of supply chain.
the Asian Development Bank (ADB) predicts that in 2021 On the other hand, a moderate pressure in point to point
Bangladesh will top the growth rate. non-food is experienced in the second half of FY20 on the
Savings and Investment back of higher remittance inflows and increase in medical
care along with health related expenses. However, point to
Gross Domestic Savings (GDSs) at current market price, point non-food inflation eased to 5.2 percent in June 2020
stood at 25.3 percent of GDP in FY20, higher than 25.0 due to subdued demand for elastic items because of losing
percent of GDP in the previous fiscal year. Gross National employment and cut of salaries. Consequently, headline
Savings (GNSs) increased to 30.1 percent of GDP in FY20 twelve-month average inflation went up to 5.7 percent in
from 29.5 percent in FY19. Investment as a percent of GDP June 2020, slightly higher than the target ceiling as well
stood at 31.8 in FY20 from 31.6 in FY19. Private and public as actual inflation of 5.5 percent recorded in June 2019.
investment to GDP ratio slightly increased to 23.6 and 8.1 In FY20, twelve-month average food inflation experienced
percent in FY20 from 23.5 and 8.0 percent respectively in broadly a stable trend with a trifling volatility ranging
FY19. Gross Domestic Savings (GDSs) and Gross National from 5.4 to 5.6 percent and ended up with 5.5 percent in
Savings (GNS) at current market prices increased by 11.2 June2020 from 5.5 percent in June 2019. Annual point-to-
and 12.3 percent respectively in FY20 compared to FY19. point food inflation exerts a mixed trend, following uptrend
Domestic savings-investment gap as percent of GDP till November 2019, downtrend up to March 2020 and then
reduced to 6.4 percent in FY20 from 6.6 percent in FY19. again takes the shape of rising trend emanating mainly
Short-term and long-term crisis from uncertainty and disruption of supply chains due to
the COVID-19 led shutdown. At the end of June 2020, the
The pandemic will likely transform consumer behavior
annual point-to-point food inflation jumped to 6.5 percent
and economic structures. It is unlikely that in-person
from 5.4 percent in June 2019. On the other hand, in FY20,
interactions will quickly return to pre-crisis levels even
except a stable situation during October-December2019,
if millions are inoculated against COVID-19. Remote
the annual average non-food inflation gradually increased
work will likely become the new norm for many service
and ruled headline inflation. The average non-food inflation
sector jobs. Meetings and conferences may remain
rose to 5.9 percent in June 2020 from 5.4 percent in June
largely digital, reducing demand for business travel
2019. In contrast, annual point to- point non-food inflation
related services. Consumer spending will increasingly
followed moderately an erratic trend in FY20. The annual
move online. Leisure and entertainment will also
point-to point non-food inflation went up to 6.5 percent in
become increasingly digital, replacing brick-and-mortar
March 2020 from 5.7 percent in June 2019; then started
venues for retail and entertainment. These shifts will
falling, reaching 5.2 percent in June 2020, on the back of
likely reduce local government revenues and adversely
subdued demand due to two months’ general holiday and
impact the delivery of basic services—health, sanitation,
lockdown.
education, transportation and public safety—in urban
centers worldwide. These shifts, already under way before Profit Rates Policy
the pandemic, will profoundly impact the trajectory of
sustainable development in the future. Furthermore, the The weighted average lending rate of commercial banks
pace of digitalization, automation and robotization will was 9.77 percent at the end of February 2017, decreased
likely accelerate during the post-pandemic period, as to 9.55 percent at end of February 2018 and further
businesses will pursue resilience and safeguards against decreased to 9.40 percent at the end of February 2019.
shocks to labor supply. Accelerated and more widespread In the end of the year 2020 the weighted average lending
automation and digitalization will likely make many job rate of commercial banks stood at 7.61 percent. On the
losses permanent. While automation and innovation other hand, the deposit rate was 5.08 percent at the end of
typically increase the productivity of workers and firms that February 2017 which increased to 5.18 percent at the end
can embrace new technologies. of February 2018 and further increased to 5.34 percent at
Inflation the end of February 2019. In the end of 2020 the deposit
rate reached to 4.54 percent. In the beginning of the year
The twelve-month point to point general inflation 2020 the interest rate spread was 3.97 percent which
increased to 6.0 percent in June 2020 amid fluctuations decreased and stood at 3.07 percent at the end of the year
from 5.5 percent in June 2019, driven by the increase 2020.
in food inflation, emanated mostly from uncertainty

Revenue Mobilization FY2019-20 against 13.65 percent in the previous fiscal
year. Of the 4 sectors of the broad industrial sector,
Fiscal performance resumed its pre-COVID-19 growth growth in the manufacturing (large and medium scale
path in Q2FY21, because of tax collections improved, and small scale) has slowed down significantly. According
growth in expenditure moderated and budget deficit to provisional estimate, the growth of large and medium
narrowed with growing economic activities. The fiscal enterprises and small scale industries in GDP stood at 5.47
deficit has reduced in Q2FY21 due to revenue collection and 7.78 percent respectively in FY2019-20, compared
increased and expenditure declined with economic to 14.84 percent and 10.95 percent in the previous fiscal
recovery. Reflecting the resumption of economic activity, year. The growth of the construction sector stood at 9.06
total revenue collections improved in Q2FY21 compared percent as compared to 10.25 percent over the previous
to Q2FY20. During the second quarter of FY21, the overall fiscal year. Overall, the contribution of the broad industry
revenue collection has increased by 8.0 percent compared sector stood at 35.36 percent in FY2019-20, as compared
to those in Q2FY20. In Q2FY21, NBR tax revenue collection to 35.00 percent in the previous fiscal year. Among the
rose by 3.8 percent to BDT 604.4 billion from Q2FY20. The broad service sector, wholesale and retail trade; hotels
customs duties (4.3 percent) and income tax (6.0 percent) and restaurants; transport, storage and communication;
were the main drivers of NBR revenue collection. Total financial intermediations; real estate and renting and
revenue collection during H1FY21 increased by 6.3percent business activities; health and social works etc. have
(y/y) to BDT 1315.4 billion which met only 34.8 percent of decelerated significantly (about 1 to 3.1 percent) compared
annual budget target (BDT 3780.0 billion) for FY21. The to FY2018-19. The contribution of broad service sector to
consolidated fiscal spending weakened with slower growth the GDP stood at 51.30 percent in FY2019-20, which was
in ADP expenditure and current expenditure in Q2FY21. 51.35 percent in the previous fiscal year.
Total expenditure amounted to BDT 901.1 billion (2.8
percent of GDP) in Q2FY21. As a share of total expenditure, Capital Market Developments
current expenditure increased by 1.8 percent to BDT 501.1
billion and ADP expenditure declined by 13.71 percent to The robust performance in the capital market which
BDT 339.7 billion in Q2FY21 compared to Q2FY20. During started in June 2020 continued in Q2FY21, as evidenced by
H1FY21, total fiscal expenditure decreased by 4.8 percent strong growth in price indices, buoyant turnover, expansion
(y/y) stood at BDT 1840.4 billion which was about 32.4 in market capitalization, and issued capital. The easy
percent of the annual budget target of BDT 5680.0 billion monetary condition, the expectation of normalcy in the
for FY21. business activities as COVID-19 situation improved with
the beginning of vaccination and several positive initiatives
The total budget deficit financing relied almost equally from Bangladesh Security and Exchange Commission
on both domestic and foreign sources in Q2FY21. The (BSEC) helped the vibrant activities in the capital market
total deficit financing of BDT 101.8 billion was met from during the H1FY21.The associations between the
domestic sources of which BDT 11.10 billion came from movements in the DSE indices and global equity market
banking sources and BDT 90.70 billion came from non- index were persistent as a result of expansionary monetary
bank sources. The foreign financing amounted to BTD policy and restoring business confidence. The Market
105.3 billion in Q2FY21 which was 18.7 percent lower than capitalization of DSE has risen to the highest level (BDT
that in Q2FY20. 3933.7 billion) in history of Capital market of Bangladesh.
Market capitalization rose to 38.2 percent at the end of
External Sector Developments Q2FY21 from that of Q2FY20. This growth attributed partly
because of newly listed Robi Axiata limited with DSE, the
According to the provisional estimate of BBS, the growth
biggest ever IPO.
of agriculture sector has slowed to 3.11 percent in the
FY2019-20, from 3.92 percent in FY2018-19. During the The DSE broad index (DSEX) and DSE-30 maintained
same period, industry sector grew by 6.48 percent, which upward trend in Q2FY21 as like Q1FY21.The DSEX index
was 12.68 percent in the previous fiscal year. The service jumped by 8.8 percent in Q2FY21 from Q1FY21 and 21.3
sector grew by 5.32 percent in FY2019-20 compared to percent from Q2FY20. The DSE-30 index grew by 15.8
6.78 percent in the previous fiscal year. Within the broad percent from Q1FY21 and 29.9 percent from Q2FY20.
agriculture sector, the growth rate of agriculture and forestry The food and allied sector reached the highest (3058.2)
sector decelerated from 3.15 percent to 2.08 percent in while Textile sector remained at the lowest level (152.6) in
FY2019-20. In addition, growth in fishing sector slowed Q2FY21.
slightly to 6.10 percent from 6.21 percent of previous fiscal
year. The contribution of the broad agricultural sector to The overall price-earnings (PE) ratio of the DSE increased
the GDP stood at 13.35 percent in significantly in Q2FY21 from the level of Q1FY21. The

average price earnings ratios surged to 16.53 in Q2FY21 Cross-country data on price earnings (PE) ratios as of
from 13.51 in Q1FY21. Sector-wise PE data show that December 2020 show that Bangladesh has moderate PE
banking sector’s PE score occupied the lowest position ratio among the South and East Asian countries while
while that of the engineering sector the highest position dividend yield of Bangladesh is the highest among these
in Q2FY21. countries. Market capitalization of as percent of GDP in
Bangladesh rebounded sharply to16.03 percent in Q2FY21
The increasing trend in turnover and issued capital in DSE from 11.5 percent in Q1FY21.
continued in Q2FY21.The value of issued equity and debt
increased by 8.3 percent in Q2FY21 from Q1FY21 and four The BSEC has taken several investor friendly initiatives e.g.
new companies were listed in the capital market and one attempt to create an investor protection fund by collecting
company were re-listed from OTC market during Q2FY21. unclaimed dividend from listed companies, faster approval
Thus the number of listed securities rose to 376 at the process of IPO to enhance the market capitalization, to
end of Q2FY21. Total turnover value up by 19.5 percent bring transparency and trust in the trading system updated
in Q2FY21 compared to the previous quarter. Market surveillance software, and starting implementation holding
liquidity as measured by the Turnover Velocity Ratio (TVR)3 of two percent of total capital for individual director and
increased to 57.0 percent in Q2FY21 from 54.1 percent in 30 percent of total capital for all sponsors director of the
Q1FY21. company which restored the investors‘ confidence in the
capital market. In addition, Bangladesh Bank undertook
several policy measures under the stimulus packages
of the government to boost liquidity in the market which
greased the uptrend activities in the capital market during
H1FY21.The expectation of improving the COVID-19
situations owing to the beginning of vaccination along with
easy monetary condition the uptrend performances of the
market are likely continue in near future.
Money and Credit Market Developments
To limit the economic slowdown caused by the pandemic
and to ensure faster recovery of economic growth,
Bangladesh Bank (BB) has been pursuing an expansionary
monetary policy by setting broad money (M2) growth
targets of 14.00 and 15.00 percent for December 2020 and
June 20211, respectively. A surge in net foreign asset (NFA)
kept M2 growing closely to its program path in Q2FY21.
Although BB slashed its key policy rates in July 2020, weak
private credit demand continued in Q2FY21 resulting a
significant rise in excess liquidity in the banking system.
Led mainly by a robust NFA growth, M2 attained at 14.23
percent (y/y) growth in December 2020, which was
very close to target. The December growth rate of M2
was considerably higher than 12.04 percent growth in
December 2019 and 13.92 percent in September 2020. The
Price Earnings Ratio, Dividend Yield and Market NFA registered a higher-than-expected growth of 30.22
Capitalization to GDP ratio of December 2020 of some percent at the end of Q2FY21 mainly because of much
selected countries are given below; higher inflows in financial account by 1233.3 percent and
a high growth of remittance inflows by 27.47 percent amid
Price pandemic-ridden global economic slowdown. On the other
Dividend M. Cap to
Country Earnings hand, the NDA growth further declined to 9.94 percent in
Yield GDP
Ratio Q2FY21 compared with 14.56 percent growth in Q2FY20
Bangladesh 14.75 3.39 16.03 and 11.67 percent in Q1FY21, contributed mainly by
India 26.08 1.05 81.39 continued deceleration in credit to both public and private
Sri Lanka 11.45 2.80 18.10 sectors. A growing momentum in government‘s revenue
Thailand 28.84 3.32 102.05 collection, a rise in borrowing through sales of national
Hong Kong 17.55 2.18 1728.70 saving certificates, and a lower implementation of Annual
China 18.37 - 44.12 Development Program (ADP) jointly contributed to reduce
Source: DSE monthly Review, December 2020 government‘s dependence on borrowing from banks

for deficit financing. Consequently, the growth of credit pushed yields on government securities (except 20-
to the public sector moderated to 21.94 percent at the year treasury bond) down. However, the fall was more
end of Q2FY21 from 59.81 percent in Q2FY20 and 35.31 pronounced in case of shorter term securities. The yields
percent in Q1FY21. Despite BB‘s various policy supports on 91-day, 182-day, and 364-day treasury bills declined by
and prevailing low real lending rates, the growth of credit 0.53, 1.12, and 1.91 percent in December 2020 from 2.93,
to private sector further decelerated to 8.37 percent 3.71, and 3.86 percent in September 2020, respectively,
at the end of December 2020, remaining far below the while yield on 20-year treasury bond increased marginally
programmed safe limit of 14.00 percent for December to 7.01 percent from 6.98 percent during the same period.
2020, reflecting subdued loan demand relating to ongoing According to the revised monetary program, the BB will
business slowdown because of COVID-19 situation in the continue its expansionary monetary policy stance for
country. In terms of economic purpose-wise distribution of FY21, with some adjustments in net foreign assets and net
private credit, the industry sector, and trade and commerce domestic assets, while keeping the growth target of private
activity, which comprise around three-fourth of total sector credit unchanged at 14.8 percent. Looking forward,
private credit, registered 8.36 and 10.69 percent growth given the acceleration of vaccination programs across
in December 2020, noticeably lower than 9.88 percent and the country, government and Bangladesh Bank policy
14.60 percent growth in September 2020, respectively. responses to support recovery from the pandemic are likely
Driven by a large unsterilized growth in NFA, reserve money to boost business confidence and private credit demand
grew by 18.11 percent in Q2FY21, remaining well above in the coming months. Therefore, it is imperative that
the target of 15.50 percent set for December 2020. Among supportive monetary policy stance should be continued
the components of reserve money, currency outside bank for strengthening private sector activities affected by the
grew by 19.72 percent in December 2020, which was lower COVID-19 pandemic until the economic recovery is fully
than 33.68 percent growth in July 2020 in the face of the achieved.
pandemic. On the other hand, balances with the Bangladesh Sustainable Finance
Bank rose significantly to 27.86 percent in December 2020,
which mainly contributed to lowering the money multiplier As per Sustainable Finance Department of Bangladesh
to 4.86 in December 2020 from 5.08 in September 2020. Bank circular no.01/2019, all the investment of banks
and FIs in impact fund registered under Bangladesh
Bangladesh Bank‘s recent downward revision of policy Securities and Exchange Commission (Alternative
rates, particularly the reduction of cash reserve ratio Investment) Rules, 2015 and has been established for
(CRR) by 1.50 percentage points led to a significant rise Specific sectors/purposes such as resource efficiency, air
in liquidity in the banking system. The ratio of total liquid emission and quality efficiency, resource recycling, waste
asset to total demand and time liabilities (TDTL) increased management, renewable energy, land contamination
to 29.52 percent in Q2FY21 as compared to 27.52 percent prevention/mitigation, energy efficiency, land acquisition
in Q1FY21. Similarly, liquid asset in excess of SLR to TDTL etc will get the treatment of Green Finance. To overcome
rose to 14.58 percent from 12.55 percent during the same the effect of the flood and dengue fever, Bangladesh Bank
period. The impact of rise in the excess liquidity had already has instructed banks and financial institutions to provide
been resulted in a downward movement of interest rates necessary assistance (financial & non-financial) to the
in both wholesale and retail money markets. Moreover, flood and dengue affected people under their corporate
prevailing low demand for private credit accentuated this social responsibility (CSR) program.
pile-up of liquidity and lingered the downward movements
of interest rates. Consequently, interest rate in the call Green banking is a genre of banking practices which
money market further declined to 1.79 percent in December considers all the social and environmental/ecological
2020 from 2.87 percent in September 2020 and 4.64 factors with an aim to protect the environment and
percent in December 2019. The weighted-average interest conserve natural resources. It is also called as ethical
rate on lending declined to 7.61 percent from 7.79 percent banking or sustainable banking. The banking sector is one
in September 2020 and 9.68 percent in December 2019. of the major sources of financing industrial projects such as
Similarly, the weighted-average interest rate on deposit steel, paper, cement, chemicals, fertilizers, power, textiles,
declined to 4.54 percent in December 2020 from 4.79 etc., which cause maximum carbon emission. Therefore,
percent in September 2020 and 5.70 percent in December the banking sector can play an intermediary role between
2019. economic & social development and environmental
protection, for promoting environmentally sustainable and
Given the liquidity glut in the banking system, government‘s socially responsible investment. Green banking refers to
less dependency on bank borrowings for deficit financing the banking business conducted in such areas and in such
in the face of a pickup in revenue collection and a rise in a manner that help the overall reduction of external carbon
borrowing through selling of national saving certificates emission and internal carbon footprint.

‘Go-green’ approach in banking sector has basically two The performance of the banking sector of
forms. Firstly, through adoption of environmental and Bangladesh
social responsibility in bank’s day to day operations like
The performance of the banking sector of Bangladesh has
wise use of paper, energy conservation etc. and secondly,
been largely affected by the COVID-19 pandemic situation
by including sustainability in to banks’ products and
for the last four months of FY20. Almost all the large
strategies like green lending, etc. Bangladesh Bank (BB)
financial markets around the world have been extremely
has set examples for others by pioneering green banking
impaired due to the lockdown aiming at hindering the
initiatives by guiding proactively the banks and NBFIs
escalation of pandemic. Bangladesh has also lost huge
since 2011. In such aspect, green banking initiatives of
export earnings and its pace of internal production has
BB broadly categorized into the following aspects: policy
been reduced significantly due to 66 (sixty six) days long
initiatives, monitoring of green banking activities of
countrywide lockdown. Both the internal and external
banks and NBFIs, refinance support from BB in diverse
situations of the financial market have created enormous
green products/ sectors, and BB’s own initiatives for
pressure on the banking sector. Despite these, all scheduled
environmental management.
banks of the country remained operational for specified
To broaden the financing avenue for green products time in every working day during the lockdown period
like solar energy, bio-gas plant and effluent treatment to provide regular banking services to their customers.
plant, etc., BB established a revolving refinance scheme Moreover, to help the scheduled banks and non-bank
amounting to Taka 2 billion (200 crore) from its own fund financial institutions (NBFIs) to survive in this critical
for solar energy, Bio-gas and Effluent Treatment Plant situation and to continue their contribution in revamping the
(ETP) in 2009. The facility is extended to the participating country’s economy, Bangladesh Bank (BB) has announced
Banks and Financial Institutions (PFIs) 3, those who have a series of policies and prudential measures from the very
signed agreement with Bangladesh Bank to avail the fund. beginning of the pandemic situation. These include but not
NBR Tax Revenue limited to, re-fixation of the regulatory liquidity ratios to
ensure additional liquidity in the banking sector, issuance
The tax-GDP ratio represents the size of tax revenue earned of sufficient prudential guidelines to maintain proper offi
by the government which is expressed as a percentage of ce environment in the banks for continuing the business
the GDP. The tax includes income tax, payroll tax, value- activities in a limited scale as well as compensation
added tax (VAT), product sales tax, and other GDP items. package for the employees as frontline workers during
The tax-GDP ratio is an important factor in the economy the lock down period, easing of foreign trade and foreign
of a country. It measures the effectiveness of a country’s currency transaction regulations, temporary relaxation in
tax policy and assesses its income inequality. Higher tax the loan classification policy, modeling and implementation
revenue indicates that available resources are being used of the Govt. stimulus packages for different segments of
properly to ensure sustainable economic growth. A higher the economy and refinance schemes to provide liquidity
tax-GDP ratio is always preferable as it induces investment support to those packages and introduction of special
opportunities and helps the government finance its fund for capital market investment, etc. Furthermore, the
expenditures, develop infrastructure and meet the budget preannounced ceiling of lending rate was also introduced
deficit. It also reflects the robust tax buoyancy and from April 01, 2020.
wider tax base of an economy. On the other hand, lower Monetary Policy
tax revenue puts pressure on the government’s plan in
expanding investment on developmental work and meeting Bangladesh Bank formulates monetary policy for the year-
fiscal deficit targets. It also increases public debt. 2019-2020. Some of the highlights of the policy are:
Bangladesh Tax revenue: % of GDP was reported at 8.0 % The domestic economy of Bangladesh upheld its precise
in Dec 2020. This records a decrease from the previous path and accelerating real GDP growth supported by broad-
number of 9.1 % for Dec 2019. Bangladesh Tax revenue: based economic activities until February of FY20. The
% of GDP data is updated yearly, averaging 9.3 % from Dec global economic halt due to COVID-19 outbreak along with
2006 to 2020, with 15 observations. The data reached an the confirmation of the outbreak locally in March 2020 have
all-time high of 9.6 % in 2015 and a record low of 7.3 % in created some serious impediments to the achievement
2006. of real GDP growth of 8.2 percent in FY20. According to
provisional estimates of BBS, real GDP of Bangladesh
stood at BDT 11637.4 billion, recording 5.2 percent growth
in FY20. However, this growth is the highest in the South
Asian region (chart 2.1). Before the pandemic, the country
was enjoying a higher growth path for the last few years

and achieved a higher growth ever 8.2 percent in FY19, percent in FY20. Within the sector, larger growth impulse
which topped all the countries in the Asia-pacific region. in FY20 primarily came from health and social work (10.0
Though various sectors of the economy were not percent) and other financial intermediation (9.5 percent).
performing as expectation during the first three quarters, Among the subsectors of services, wholesale and retail
growth of remittance and industrial production index was trade, repair of motor vehicles, motorcycles and personal
in line with the growth target of 8.2 percent. Afterwards, the and household goods; hotel and restaurants; transport,
first positive case of corona virus identified on March and storage and communication; financial intermediation;
to contain its spread government announced a national real estate, renting and business activities; public
general holiday from March 26 to May 30. As a result, administration and defense; education; and community,
economic activities drastically plummeted during the last social and personal services registered the growth of 5.0,
quarter of FY20 resulting a 2.9 percentage point fall in the 6.5, 6.2, 4.5, 4.9, 6.0, 6.2 and 3.6 percent in FY20 which
growth compared to FY19, which was the largest one-year was 8.1, 7.6, 7.2, 7.4, 5.2, 6.4, 7.7 and 3.7 percent in FY19
fall of growth since FY91. respectively.
Provisional data of BBS showed that GDP at current Global and Domestic Islamic Banking Scenario
market price was BDT 27963.8 billion for FY20 which Being characterized as the finance Industry running
was 10.0 percent higher compared to the preceding year. based on Shariah principals and its finance backed by
In FY20, per capita real GDP and GNI was estimated at tangible assets, the Islamic Finance Industry is growing
tk.166,888 and Tk.174,888 respectively. However, growth moderately after due to strong investments in the Halal
rate moderated due to COVID-19 pandemic in FY20, the Sectors, infrastructure after Sukuk bonds. The total
industry sector continued to achieve the highest growth worth of the Islamic Finance Service Institution (IFSI) has
followed by services and agriculture sector. This reflects further crossed USD2 trillion on the back of significant
the sustainability of growth of the economy. improvement across three sectors of Islamic banking,
The industry sector, constituting more than one-third of the Islamic capital market and Takaful. Islamic Finance
gross value-added (GVA) in the economy, grew by around growth was resilient, and growth recorded 22 percent
6.5 percent in FY20, far below from 12.7 percent in FY19. during the pandemic. There is also an improvement in
This drop in growth was mainly led by low growth in all the resilience of the IFSI based on satisfactory financial
subsectors of industry hampered by ongoing COVID-19 stability indicators and compliance with most international
pandemic. Among the subsectors, mining and quarrying; regulatory requirements, especially when compared to
manufacturing; electricity, gas and water supply; and conventional banks in most jurisdiction with a significant
construction registered the growth of 4.4, 5.8, 6.2 and 9.1 presence of Islamic Finance as well as in the United States
percent in FY20 against 5.9, 14.2, 9.6 and 10.3 percent in and the European Union. The Gulf Cooperation Council
FY19 respectively. The large and medium scale and small (GCC) region remained the engine of growth for the Islamic
scale subsectors of manufacturing sector also registered Banking Sector.
lower growth at (5.5 and 7.8 percent respectively) in FY20 The Islamic capital markets are the second most significant
compared to 14.8 and 11.0 percent growth respectively in component of the Islamic finance sector; where Sukuk are
FY19. major contributors. First time in the history of Bangladesh,
The growth of agriculture sector decreased slightly to 3.1 the /central Bank has invited for an investment of BDT
percent in FY20 from 3.9 percent in FY19. The growth rate 4,000 on Izra Sukuk- Shariah based bond. And the response
dropped due to moderation of growth in all sub sectors was overwhelming. The participators placed demands
of agriculture viz. crops and horticulture, animal farming, BDT 15,153 crore against bond value which indicates its
forest and related services and fishing. 2.6 Among the acceptance in corporate sectors as well as individuals in
subsectors, fishing achieved a growth of 6.1 percent Bangladesh. Total deposit in the Islamic Banking Sector
in FY20 against 6.2 percent growth in FY19. Growth in reached BDT 3,269,223 million at the end of December
agriculture and forestry subsector fell from 3.2 percent 2020 which is increased by BDT 466,944 million (16.66%)
in FY19 to 2.1 percent in FY20. Under agriculture and compared to the same period of the last year. Total
forestry subsector, forest and related services registered investment of the Islamic banking sector stood at BDT
the highest growth of 6.4 percent in FY20 which was 8.3 2,940,936 million at the end of December 2020, which went
percent in FY19. Moreover, growth in animal farming and up by BDT 100,831 million with 8.09 percent compared to
crops and horticulture subsectors also fell from 3.5 and 2.0 the end of the same period of the last year, respectively. At
percent in FY19 to 3.0 and 0.9 percent in FY20 respectively the end of December 2020, the investment- deposit ratio
stood at 90 percent which was 94 percent at the end of
Despite some moderation, the service sector, comprising December 2019. Total remittances mobilized by the Islamic
more than half of GVA, registered a modest growth of 5.3 Banking sector stood at BDT 597,481 million during 2020

which went up by 34.13 percent compared to the end of Bangladesh Government Islamic Investment Bond
the same period of the last year. The number of branches
of the Islamic banking sector, including Islamic branches/ In principal, the method of treasury functions and its
windows of conventional commercial banks reached 1528 management of an Islami bank are quite different from
at the end of December 2020 which was 1380 at the end of other conventional bank. To support the daily treasury
December 2019. functions of Islami banks, Ministry of Finance, Government
of the Peoples’ Republic of Bangladesh in the year 2004
Formation of IBCF introduced a very special type of Shariah based bond
called “Bangladesh Government Islami Investment Bond.”
For effective interaction, communication and exchanges which is treated as a component of Statutory Liquidity
the ideas & views of Shariah banking development and Ratio (SLR). The operation of 6-month, 1-year and 2-
its practices in Bangladesh among the Islamic banking year Bangladesh Government Islamic Investment Bond
and Islami Banking Branches of the conventional Banks, a introduced in Financial Year 2005 in accordance with the
forum called “Islamic Bank Consultative forum (IBCF)” was rules of Islamic Shariah where per unit bond price has
formed in 1995. IBCF may be called first ever organizational been determined Taka 1,00,0000/-(Taka one lac). As per
development in establishing Islamic Banking in Bangladesh the rules, Bangladeshi institutions and individuals, and
where the member banks discuss together the problems non-resident Bangladeshi, who agree to share profit or loss
and issues relating to the growth and development of in accordance with Islamic Shariah, may buy this bond.
Islamic Banking in Bangladesh and common strategy Social Islami Bank Limited has been actively involved in
and policies are formulated for implementation through buying this bond and as on 31.12.2018 total outstanding
this common Forum. The immediate goals of the IBCF buy amount (principal amount) of this bond stood at Taka
were to establish Central Shariah Board for all Islamic 8.95 billion. Re-investment facility featured has been
Banks in Bangladesh, Islamic Money Market, Islamic tagged with the bond and any Bangladeshi Institutions and
Insurance Company(s), innovation of new financial Individuals, and non-resident Bangladeshi, who agrees to
products. Among them, Central Shariah Board is now share profit or loss in accordance with Islamic Shariah, can
functioning successfully. Bangladesh Government Islamic accept borrowing from the fund.
Investment Bond (BGIIB) and Islamic Money Market are
the development of IBCF and Bangladesh Bank which are Islami Bank’s Fund Market
being enjoyed by almost all the Member-Banks. At present,
8 (eight) full-fledged Islamic Banks like (i) Islami Bank Temporary arrangement of funds through MSD (Mudaraba
Bangladesh Limited (ii) EXIM Bank Limited (iii) Shahjalal Savings Deposit) and MND (Mudaraba Notice Deposit)
Islami Bank Limited (iv) Social Islami Bank Limited (v) ICB accounts: In order to day to day liquidity management,
Islamic Bank Limited (vi) Al-Arafah Islami Bank Limited and Islami banks cannot take part in call money Market
(vii) First Security Islami Bank a (viii) Union Bank Limited operation and other activities like REPO and Reverse
and 6 (six) numbers of Conventional banks having Islami REPO which are very common techniques widely used by
Banking Branches like (i) Prime Bank Limited (ii) Dhaka the conventional banks. Besides that, the Islamic Money
Bank Limited (iii) Southeast Bank Limited and (iv) AB Bank Market of Bangladesh is not well structured. To mitigate
Limited (v) Bank Asia Limited and (vi) Pubali Bank Limited the immediate/short liquidity crisis and management
are the members of IBCF. of surplus funds overnight, Banks running under Shariah
principles have an arrangement between themselves to
Formation of CSBIBB (Central Shariah Board for Islami maintain MSD (Mudaraba Savings Deposit) Accounts or
Banks of Bangladesh) MND (Mudaraba Notice Deposit) Accounts for temporary
transactions. Excess funds are placed to others banks
CSBIBB was formed in 2001 with the view to observance and shortage of funds are replenished by calling other
of uniform policies and practices of Islamic banking Islamic Banks or Islamic Banking Branches to deposit in
among the member banks. Currently 8 (Eight) full edged these accounts. This technique is very popular among the
Islamic Banks and 06 (six) conventional banks of Islamic Islamic Banks/Islamic Banking Branches.
banking Branches are the member of CSBIB. CSBIBB is
manly rest with the functions of (i) collections, translations Introduction of Islamic Inter Bank Fund Market (IIFM)
& publications of Journals and References on Islamic
Banking (ii) to arrange and undertake research programs, Bangladesh Bank has introduced Islami Inter Bank Fund
Training, workshop, seminar, symposiums (iii) gives award Market (IIFM) with a view to facilitating liquidity management
for contribution in Islamic Banking. of the Shariah-based Islamic banks. Islami Banks cannot
borrow fund from the conventional call money market due

to non-compliance of Shariah. Moreover, absence of a disburse fund only in the projects including 47 products
Shariah-based money market refrain the banks to borrow selected by Bangladesh Bank.
fund from each other. Therefore, Islamic money market is
integral to the functioning of the Islamic banking system in Under this Refinance Scheme PFIs will lend on a 3 months
providing the Islamic financial institutions with the facility renewable basis at the rate of their Mudaraba Savings a/c
for funding and adjusting portfolios over the short-term. rate or bank rate (5%), whichever is lower. Profit generated
Financial instruments and inter-bank investment would from this fund will be distributed among the PFIs according
allow surplus banks to channel funds to deficit banks, to their investment ratio.
thereby maintaining the funding and liquidity mechanism
Investment in Refinance Scheme will be taken into account
necessary to promote stability in the system. Although
to fulfil the Statutory Liquidity Requirement (SLR) of Islamic
the Islamic Shariah-based banks have about 20 per cent
banks and NBFIs.
market share of the total asset and liability in the country’s
banking industry, they did not have any inter-bank money Agriculture Credit Department of Bangladesh Bank (BB)
market (call money market) before. As a result, the banks through their circular letter no.2 dated 20-09-2020 allowed
were facing problems in managing excess liquidity, and on Refinance scheme of 5000 crore taka for providing working
the other hand, if a bank needed fund to overcome sudden capital in agriculture sector due to break-out of Novel Corona
liquidity shortage, Islamic Banks had no option to manage virus. Later on BB has launched a Refinance Scheme for
fund except internal arrangement in between Shariah banks the COVID-19 affected low income professionals, farmers
through MSD and MND accounts operations. Sometimes, and holders of small and marginal businesses through FID
Islamic banks are in the excess liquidity position, which Circular Letter No. 02 dated November 09, 2020. Under
remain idle due to absence of a formal money market for this scheme, a microcredit institution is allowed to avail
them. Introduction of IIFM has solved the problems of of financing facility from a maximum of 3 (three) different
the Islamic banks and from now they are able to collect banks. In case of availing financing facility from more
fund from inter-bank money market. Shariah-based banks than one bank within the stipulated limit, the microcredit
transact with each other through a separate fund called institution shall have to submit a declaration on the availed
IIFM and the central bank is the custodian of this fund. financing facility from the first, if applicable from the first
According to the rules, if any bank has excess fund, it will and second, bank to the finally financing bank.
invest the amount in the IIFM for one day. Besides, another
Islamic bank requiring fund can borrow funds from it from Internal Control and Compliance
the IIFM for one day. The rate of profit in the Islamic bank
money market is determined on the basis of the profit Internal control system robust internal control system
rates of the bank gives to its depositors on a three months’ helps SIBL to ensure achieving goals and aspirations
deposit. The contract will be based on Mudaraba principle sustainably. This control system also ensures that the
of Islamic banking law and the new system would open Bank complies with local laws and regulations as well
a new window of investment for the Islami banks having as policies, plans, internal and external rules, guidelines
excess liquidity. and procedures, and subsequently decrease the risk of
unexpected loss or damage to the Bank. The Board has
Bangladesh Bank Refinance Scheme delegated the responsibility of overall supervision of
internal control system to Audit Committee of the Board.
Bangladesh bank vide its letter no-GBCSRD Circular no- The key functionalities that have been established in
01, Dt-18.01.2015 has created an Islamic refinance Fund reviewing adequacy and integrity of the system of internal
comprising of Tk-1000.00 million allowing Islamic Banks control are as follows:
and Non Bank Financial Institutions (NBFIs) to finance in
eco-friendly projects like agro-processor, small enterprises, • Different committees have been formed consisting
renewable energy and environment friendly initiatives on of relative stakeholders with expertise on the subject
the basis of Islamic Shariah. matter to assist the Board in guiding the Bank’s
operation in line with corporate mission, vision and
This is to accelerate the involvement of excess liquidity of strategies.
Islamic banks And NBFIs in economic activities and add
value to the economy of the rural areas across the country. • The internal audit department of the Bank checks
for compliance with policies and procedures and the
According to the circular, interested Islamic banks and effectiveness of the internal control system on regular
NBFIs have to sign an agreement with ‘Green Banking & basis and highlights significant findings in respect of
CSR Department’ of Bangladesh Bank. This covenant will any non-compliance.
empower Participating Financial institutions (PFIs) to

An Overview of the Bank To comply with the international practices and to make the
bank’s capital more shock absorbent, Bangladesh Bank
Founded in 1995, Social Islami Bank ltd is the country’s has issued new guideline in line with Basel III guideline
leading value-added financial institution based on Shariah’ where two new liquidity ratios has been introduced i.e.
Principles. SIBL comprises of SIBL Securities Ltd, SIBL Liquidity coverage ratio (LCR) and Net Stable Funding Ratio
Investment Ltd, SIBL Foundation Hospital. Working closely (NSFR). Capital conservation buffer has to be maintained
with our valued clients and stakeholders to provide them @ of 0.625% in every year starting from year 2016. SIBL is
one-stop services, access to the very latest products using the compliant of risk based capital adequacy framework-
technology. Our unmatched customer services has made BASEL-III. As per regulatory requirements, the bank
us distinctive in the industry. We build a long term business uses standardized approach for assessing, evaluating
partnerships with our client helping them grow profitable. and calculation of risk weighted assets. SIBL is always
We are always ready to serve you with 3100 employees concerned about its capital and its due maintenance and
in 168 branches and 72 sub branches across the country. accordingly while forecasting the business growth and
It has also 162 Agent Banking outlets to cater financial regulatory capital requirements, internal and external
services to the remotest parts of the Land. sources of capital are considered in detailed after capital
impact study. As per Basel III capital at the year end 2020
The strong conviction to create a caring society is the stood at (a) paid-up capital Taka 9,380.08 million (b) total
cornerstone of SIBL’s all activities. We feel a strong affinity capital (as per BASEL-III) Taka 30,368.90 million.
to the emotions of people. We believe that only banking
activities can’t usher our society to a just and equitable
stage. Thus we are extensively engaged in CSR activities
on humanitarian grounds. We work in the fields such as
from poverty eradication to family empowerment. Unlike
others, the Bank’s criteria for success are not only the key
objective to make profit but also landmarks to become the
country’s most humanitarian and complete Bank.
Capital Management of the Bank
The bank started its journey in the year 1995 with a paid
up capital of Taka 118.36 million and thereafter as on
31st December 2020, it has built a total Capital of Taka
30,368.90 million using the external and internal sources.
Given below table is the last 6 years history of SIBL towards

its capital journey efforts:
Fig in million Taka
Paid up Total Growth Source of
Year
Capital Capital (over the previous year) Capital
Internal
generation
2015 7,031.42 16,916.08 29.34% & External
generation
Internal
generation
2016 7,385.99 19,195.04 13.47% & External
generation
Internal
generation
2017 7,385.99 21,725.08 13.18% & External
generation
Internal
generation
2018 8,121.29 26,111.51 20.19% & External
generation
Internal
generation
2019 8,933.41 27,901.80 6.86% & External
generation
Internal
generation
2020 9,380.08 30,368.90 8.84% & External
generation

Capital Base (Tier-I & Tier-II)
As per directives of Bangladesh Bank, all commercial banks are in the process of implementing the new risk based capital
adequacy guideline in line with Basel III. From 1st January of the year 2015, implementation of Basel III has been initiated.
From the year 2020 all bank operating in Bangladesh are required to maintain the minimum capital to risk weighted assets
ratio (CRAR) @ 12.50% including conservation buffer. In Basel III guideline, the definition of Capital has been changed
from Basel II. Tier-I capital which is also known as going concern capital consisting i) Common Equity Tier I (CET-1) and
ii) Additional Tier I (AT-1) capital. At SIBL, CET-1 are composed of (a) paid up capital (b) statutory reserves (c) retained
earnings and Additional Tier I composed of SIBL Mudaraba Perpetual Bond.
Tier-II capital which is known as gone concern capital consisting of (a) general provision on unclassified Investments
(b) Subordinated Bond. As per requirements of the guideline, it is mandatory to maintain the CET-1 @ 7.00% including
conservation buffer whereas Tier I capital will be maintained minimum @ 6.00%. Capital base consisting of Tier I & II of the
Bank as on 31st December 2020 stood at Tk. 30,368.90 million as against Tk. 27,901.80 million as on 31st December 2019.
As per BASEL-III, the Comparative position of Capital Base of the year 2020 and 2019 is given as under:
Fig in million Taka

Tier-I Capital
CET-1 Capital
1. Paid up Capital 9,380.08 8,933.41
2. Statutory Reserve 7,030.39 6,422.26
3. Retained Earnings 1,056.77 984.28
Sub-total 17,467.25 16,339.95
AT-1 1,500.00 -
Total Tier I Capital 18,967.25 16,339.95
Tier-II Capital
1. 1% provision on unclassified investment 5,441.65 4,401.85
2. 50% of Revaluation surplus on Fixed Assets (as per phaseout program) - -
3. SIBL Mudaraba Subordinated Bond 5,960.00 7,160.00
Sub-total 11,401.65 11,561.85
Total 30,368.90 27,901.80
Capital Adequacy Ratios
i.CET-1 Capital Adequacy Ratio 8.43% 8.07%
ii. Tier –II Capital Adequacy Ratio 5.07% 5.71%
iii. Capital to Risk Weighted Asset Ratio (CRAR) 13.50% 13.78%
Stress Testing
To analyze the soundness of capital impact / capital’s shock resilience of the bank more elaborately in the backdrop
of 5 major risk factors of bank i.e. (a) Profit rates (b) Forced sale value of collateral (c) Non Performing Investment
(d) Share price & (e) Foreign exchange rate based on minor, moderate and major levels of shocks consideration,
Bangladesh Bank vide its circular no DOS Circular No 1 dated 21st April 2010 and revised guideline on 23 February
2011 has directed all the commercial banks for stress testing on the basis of ‘Simple Sensitivity and Scenario
Analysis” w.e.f. June 2010 on half yearly basis and thereafter quarterly basis w.e.f 1st quarter of 2011. Stress
testing simply provide information on strength of a bank to absorb the level of shocks against all the risk factors.
The bank has a continuous plan on its capital structure to defeat any unforeseen minor or moderate shocks at any time.
The stress test results for the year 2020 shows that the capital structure of the bank is well defined and also indicative
that the bank will be able to maintain the capital adequacy ratio at the standard level as set by the regulator.

SIBL MUDARABA PERPETUAL BOND RELATED to determine the strategy to defeat any unusual market
INFORMATION liquidity situation. The bank has a clear guideline to face
the stress liquidity situation to protect the bank at anytime
Social Islami Bank Limited is in the process to issue SIBL from any means of liquidity mismatch. During the year
Mudaraba Perpetual Bond for a total sum of Taka 500.00 under report, the bank conducted 16 numbers of ALCO
Crore (Taka five hundred Crore). Bangladesh Securities and meetings. To support the ALM and ALCO, the bank has a
Exchange Commission (BSEC) vide its letter ref: BSEC/CI/ special desk under the name and style ‘ALM Desk’ which
DS-07/2014/272 dated: 25/11/2020 has approved the bond. is (a) primarily responsible for scanning the liquid market
Bangladesh Bank has also given their NOC for issuing the place along with national, continental and international
Bond vide its letter ref: BRPD(BFIS)661/14B(P)/2020-8946 economy and economic factors every second (b) secondly,
dated: 22/10/2020. This bond will be treated as Additional communication-monitoring-follow up of ALCO decision and
Tier I capital which will further strengthen the capital (c) thirdly, closely monitoring of structured liquidity profile
base of the Bank in compliance with the capital adequacy of the bank through in-depth analysis of Asset & Liability
requirements as per BASEL-III Capital accord. Expectedly, position of the balance sheet and tracking the different
it will also facilitate the long term business of our Bank liquidly parameter whether all these factors are moving
through the expansion of general investment portfolios within the controlled environment/tolerable limit or nor and
resulting in profitability growth of the Bank as well as report to the CEO. Some young and brilliant professionals
attaining sustainable growth. An amount of Tk. 1,500 are assigned to perform the ALM jobs and highly concerned
million has been subscribed within 31/12/2020 and the to assist the bank in proper liquidity management under
rest amount will be subscribed within November 2021. the close supervision of senior management.
SIBL MUDARABA SUBORDINATED BOND RELATED The Bank is committed to maintain the CRR and SLR
INFORMATION through effective management of assets & liabilities of the
Bank in order to maximize the profit. During the year under
Social Islami Bank Limited issued three subordinated bond report, the bank effectively maintained required CRR and
to support and strengthen Tier-II capital base of the bank SLR throughout the year without fail as per Bangladesh
under Basel-III capital regulation of Bangladesh Bank. Bank’s norm.
The details of SIBL Mudaraba Subordinated Bonds are
presented below: Placement & Funding
Figure in Million Taka Style and method of placement & funding of Shariah
Outstanding compliant banks are quite different from conventional
Issued
SL Name of the Bond Issue Date
Amount
Amount as on banking style. Shariah banks operate their placement
31.12.2020 & funding under restricted environment and keep them
1
SIBL Mudaraba
31/03/2015 3,000 600
apart from participation in ‘Call Money Market Operation’
Subordinated Bond and from ‘Treasury Bill’ purchasing programs like other
SIBL 2nd contemporary banks- which are the mostly famous and
2 Mudaraba 20/06/2016 4,000 2,400 widely used techniques in the banking industry in house
Subordinated Bond
and abroad. However, for the Islami banks, borrowing from
SIBL 3rd Mudaraba Bangladesh Govt. Mudaraba Bond –a recognized external
3 27/12/2018 5,000 5,000
Subordinated Bond
fund, provides liquidity to the Islami banks under some
Total 12,000 8,000 restricted environment. Borrowings from Bangladesh Govt.
Mudaraba Bond mostly depend on the availability of the
Liquidity
fund and availability of securities.
The bank has been following an approved ALM (Asset
SIBL as a Shariah based bank, surplus funds placement
Liability Management) guideline, duly approved by the
and borrowings are usually initiated in the following way :
Board of Directors of the bank, in managing the day to
day liquidity since 2005. Senior management of the bank Placement of fund with the other Banks and Financial
is involved in the total process of liquidity management Institutions in the form of Savings, Notice and Term
and discharges decision through ALCO (Asset Liability deposit Since the funding of Shariah banks are restricted to
Committee) meeting. Management of the bank puts some extent, the bank always keep room in its ID ratios as
much stress on the bank’s liquidity on regular basis per BB instruction time to time and the surplus funds keep
rather than casual. Members of the ALCO sit minimum with other Islami Banks or with the Islami banking branch /
once in a month and instantly in case of any emergency windows of conventional banks. Usually, Savings & Notice

deposits accounts with other banks are used to manage Profit paid to Depositors
the temporary or short term surplus for income generation
purpose in one side and to withdraw money instantly to The bank has distributed Tk. 19,484.79 million among
support the total liquidity system of the bank on the other the Mudaraba Depositors as profit in 2020 as against Tk.
side. 18,428.55 million in 2019.
Borrowings of fund from Bangladesh Govt. Mudaraba Bond Profit paid in 2020 among the various types of mudaraba
SIBL borrows fund from Bangladesh Govt. Mudaraba Bond depositors at the following rate:
against the lien marking of Instruments of Investment in
Mudaraba Term Deposit
Bangladesh Govt. Mudaraba Bond IBP Instruments MTDR
receipts with other Bank’s Investment.
Sl Particulars 2020 2019
Deposits 1 1 Month 3.50% 5.00%
During the year 2020, the bank drew-up a series of action 2 3 Month 5.50% 7.00%
plan both short term and long term to raise the deposit base
of the Bank in line with the Directives of the Bangladesh 3 6 Month 5.75% 8.50%
Bank. The short-term action plan included launching of 4 1 Year & Above 6.00% 9.50%
special drives like deposit mobilization months during
2020. The following graph shows the deposit trend of the Mudaraba Savings Deposit
Bank :
Sl Particulars 2020 2019
1 Mudaraba Savings Deposit 3.50% 4.00%
2 SIBL Youngster Account 4.50% 6.50%
3 Super Savings Account 4.50% 5.00%
Sanchita Special Deposit
4 2.50% 4.50%
Scheme
Proshanti (Mudaraba Zakat
5 7.00% 9.00%
Savings Account)
Mudaraba Cash Waqf Savings
6 7.00% 10.50%
Account
Mudaraba Special Notice Deposit

Comparative Deposit Mix
sl Particulars 2020 2019
Fig in million Taka
1 Less than 1 crore 2.50% 3.50%
Deposit mix 2020 2019 Growth
Equal to or more than 1 crore
Al-Wadeeah 2 2.75% 4.00%
but less than 25 crore
Current & Other 40230.37 32,054.93 25.50%
Deposit Equal to or more than 25 crore
3 3.00% 4.50%
Mudaraba Savings
33622.11 25,739.18 30.63% Equal to or more than 50 crore
deposit 4 3.50% 5.00%
Mudaraba Term
175364.57 165,687.51 5.84% 5 Equal to or more than 100 crore 4.50% 6.00%
deposit
Other Mudaraba
72789.41 64,112.32 13.53%
deposit
Cash Wqf. 377.06 342.71 10.02%
Total 322,383.52 287,936.65 11.96%

Mudaraba Scheme Deposits: Group E: Other Schemes
1. Cash Waqf 7.00% 10.50%
No. Particulars 2020 2019
Deposit Scheme
Group A: mudaraba monthly profit scheme
2. Cash Waqf 7.00% 10.50%
1. Mudaraba 6.50% 8.50% Monthly Profit
Monthly Scheme
Profit Deposit
3. Mudaraba 6.50% 8.50%
Scheme(3 Year)
Marriage
2. Shachanda 6.50% 8.50% Savings Scheme
Protidin
4. Mudaraba 6.75%-7.00% 8.75%-9.00%
3. Shuborno Lata 6.50% 8.50% Mohorana
4. Shobuj Chaya 6.50% 8.50% Savings A/C
5. Mudaraba 6.00% 8.00% 5. Mudaraba 6.50%-7.00% 8.50%-9.00%
Monthly Profit Education
Deposit Scheme Deposit Scheme
(1 Year) 6. Mudaraba 6.50%-7.00% 8.50%-9.00%
6. SIBL Astha(one 7.20% 10.50% Bashsthan
year) Savings Scheme
7. SIBL Astha(two 7.80% 7. Mudaraba 11.25% 11.25%
year) Double Benefit
Group B: Mudaraba Deposit Pension Scheme Scheme
1. Mudaraba 6.50%-7.00% 8.50%-9.00% Investment
Special Deposit
Pension Risk is an integral part of banking business and Social
Scheme Islami Bank Ltd. (SIBL) aims at delivering superior
2. Sonali Din 6.50%-7.00% 8.50%-9.00% shareholder value by achieving an appropriate trade-off
between risks and returns. Investment risk arises from the
3. Shukher Thikana 6.50%-7.00% 8.50%-9.00%
probability that a bank’s investment client will fail to meet
4. Suborno Rekha 6.50%-7.00% 8.50%-9.00% its obligations in accordance with agreed terms, resulting in
5. Shobuj 6.50%-7.00% 8.50%-9.00% a negative effect on the profitability and capital of the bank.
Shayanho Investment risk can arise from default risk, concentration
of counterparties, industry sectors and geographical
6. SIBL Super DPS 7.00%-7.50% 9.25%-
regions. Generally, investments are the largest and most
10.00%
obvious source of investment risk. However, investment
Group C: Mudaraba Hajj Scheme risk could stem from both on-balance sheet and off-
1. Kafela 7.00% 9.00% balance sheet activities such as guarantees, Documentary
Group D: Mudaraba Lakhopoti, Millionaire & Billionaire Credits etc. It may arise from either an inability or an
Scheme unwillingness to perform in the pre-committed/contracted
manner. Investment risk comes from a bank’s dealing with
1. Shopner Shiri 6.25%-7.00% 8.25%-9.00% households, small or medium-sized enterprises (SMEs),
(Lakhopoti) corporate clients, other banks and financial institutions, or
2. Suborno 6.25%-7.00% 8.25%-9.00% a sovereign.
Digonto
(Millionaire)
3. Shorno Shikhor 6.25%-7.00% 8.25%-9.00%
(Billinior)

Success depends on some one’s ability to satisfy the Bashundhara Group, Runner Automobiles Ltd., Runner
ever-changing choices of customers constantly. We are Motors Ltd., NZ Group, Base Group, ACME, Pran RFL Group,
committed to be innovative and responsive, while offering Abul Khair Group, Nitol Motors, AMBAR Group, Shikder
high quality tailored products and services at competitive Group, Rahimafroz, NASA Group, ACI, Mir Akhter Ltd.,
prices. We are devoted to be one of the best financial service Aman Spinning, Megnum Steel, Bangladesh Development
providers in Bangladesh delivering superior products to our Group, BSRM, KDS Group, Noman Group, United Group etc.
valued customers within a framework of shared integrity. We also integrated our collaborative efforts vigorously and
Social Islami Bank Ltd.’s Investment Risk Management successfully during this time for helping various small and
Division (IRMD) and Investment Administration Division medium enterprises for supplying their capitals through
(IAD) are relentlessly working keeping these values and our different micro-investment tools.
commitments in mind.
Consumer Investment Division of our business is focusing
In order to excel in investment risk management, SIBL more on retail and card investment with a view to diversify
has devised, nurse and ensured compliance on core investment portfolio to meet investment need for procuring
investment values to cultivate and drive behavior towards consumable items of a developing society and to take a
highly efficient and quality investment functions. Here, significant market share of retail and card investment in
our main challenge is to maintain, manage and ensuring the industry.
asset quality and to distribute investment to the target
group offering competitive price, smooth banking services, To contribute in the society, serve the nation and to grab
inducting best of the best clients and diversification of the market share SIBL has introduced Islamic micro-
investment- portfolio focusing on retail and SME and financing under Family Empowerment under Islamic Micro-
Agricultural sector. Our continuous effort will be to ensure Finance Program in the year 2015. At present 70 (Seventy)
asset quality and cross selling of investment as well as Branches of SIBL are in operation of this program and
deposit products in line with the Shariah principles. the management of our bank also selected and approved
another 40 (Forty) branches for this service. Gradually this
The bank has exerted its best efforts towards service would be available in all branches of SIBL based on
implementation of Core Risk Management Guidelines the demand.
in Investment Risk Management. Investment Risk
Management Division, Trade Finance & RMG Division, The following chart depicts the year wise position of
SME & Agricultural Finance Division are also very much investment since year 2015:
aware about the upcoming risk factors involved in banking
industry. As a result, we are now more cautious about
implementing various risk mitigating factors in line with the
directives of Bangladesh Bank and GoB. We are following
BASEL-III guidelines and subsequent developments in
this regard and other regulatory guidelines meticulously.
Out strong persuasion and initiatives are going to rate the
unrated investment clients. Meanwhile, a notable amount
of our ratable investment clients have been rated by leading
rating agencies and rest are in process. We therefore hope
that in coming days we would be more successful in
mitigating risk factors and presenting quality assets.
Investment of SIBL in the year 2020 showed a favorable

growth. The total investments of the Bank stood at Tk. Percentage of Non-performing assets (NPA) of SIBL has
300617.94 million in various sectors as at 31st December decreased from 6.63% (in the year 2019) to 6.05% (in
2020 against Tk. 264268.59 million as on 31st December the year 2020). To keep the Non-Performing Investment
2019 registering a growth 13.75% (Net increase by Tk. (NPI) at a reasonable level SIBL has taken vigorous drives
36349.35 million as compared to 2019) that is the sign towards recovery of NPI and ensuring quality disbursement
of the confidence of the clients on the Bank. We are now of fresh investments. Out of Investment of Tk. 300617.94
concentrating our efforts to increase quality investments to million, Tk. 18201.16 million has become classified as on
facilitate the investment earnings. The Bank has extended 31.12.2020.
financial support towards some of the largest business
conglomerates like Badsha Textile, Butterfly Marketing
Ltd. and sister concerns, Meghna Group, Partex Group,

Provision composition against funded investment for the year 2020 and 2019 is furnished hereunder:
(Figure in million Tk.)

2020 2019
Status Provision Rate Composition Composition
Amount Amount
in % in %
0.25%, 1%, 2%, 5% & General
Provision against RSDL
Unclassified investment 3022.31 23.64% 3,855.38 33.50%
under BRPD Circular No. 05,
dt. 16.05.2019
Special Mention Account (SMA) 1948.90 15.25% 56.17 0.49%
Su-Standard investment (SS) 5%, 20% 96.48 0.75% 101.86 0.89%
Doubtful Investment (DF) 20%, 50% 24.36 0.19% 39.46 0.34%
Bad /Loss Investment (BL) 100% 7691.25 60.17% 7,454.23 64.78%
Total 12783.30 100.00% 11507.10 100.00%
Investment Plan for 2021: Moreover, to boost up the present economic condition due
to Covid-19, our plan is to achieve target of disbursement
SIBL has set investment target to Tk. 326,500.00 million against different stimulus packages set by the Bangladesh
Starting from Tk. 300,617.94 million with the focus of bank, declared by the government.
minimizing concentration risk and diversifying investment
portfolio. We also have plan to make investment as alternative
investment fund and also in start-up business to diversify
SIBL is looking forward to enhance financing in SME, micro our investment portfolio and improve the present new
investment sectors and cottage industries with a vision normal situation
to minimize concentration risk. SIBL is also looking for
opportunity to finance investment clients in rural areas. Sustainable Finance and Green Banking Activities
SIBL wants to encourage new entrepreneurs to start their
own business & thereby creating employment & reducing Sustainable Banking refers to adopting environmentally
poverty rate. responsible financing, weighing up environmental risks
of projects before making financial decisions, financing
With high quality resources equipped with both operational spontaneously to various social development activities
and product expertise under a competent management and supporting & fostering growth of upcoming green
team, Investment Risk Management Division (IRMD), initiatives & projects. Sustainable Banking can also promote
Trade Finance & RMG Division, SME & Agricultural environmental friendly in-house practices within the Bank
Finance Division, Consumer Investment Division (CID) and to reduce carbon footprint from its banking activities which
Investment Administration Division (IAD) are always ready is an ethical approach in banking practice as well.
to take the challenge of expected growth of the investment
portfolio ensuring the quality of the asset. But, under Sustainable Development Goals (SDGs) which are declared
any circumstances, quality of the investment portfolio or by United Nations for the period of 2016-2030 refers to a
related risks like market risk, liquidity risk and operational range of social needs including education, health, social
risk will be analyzed and subsequently mitigated before protection and job opportunities, while tackling climate
investment approval. change and environmental protection. Bangladesh Bank
through its guidelines on Green Banking & CSR and
In achieving the target we plan to diversify our portfolio to newly introduced Sustainable Banking approach has
cover the marginal & peripheral enterprise. In doing so the been supporting the Banks for accelerating sustainable
effect of the investment will be multiplied in development development activities in the country.
of the economy of the country. We set priorities to labor
intensive industries and medium & small enterprise to The main purpose of Sustainable Banking is to make the
create employment so the national GDP growth will be earth a safe habitat for the human being, animals, plants
accompanied with the growth of UN Human Development and other organisms in the ecosystem by upholding the
Index. Also SIBL always welcome investment in ethical standards, promoting social welfare activities and
construction sector to ensure continuous infrastructural taking appropriate measures for environmental protection
development in the country. & action plans on climate change related issues. This is

an effort from banks’ part to ensure peace & justice in the Terms of Reference (ToR) of “Sustainable Finance
society, tackle the future incidents which may take place Department”:
due to climate change and restore the environment on the
earth as well. 1. To perform the following activities of the Bank related
to policy formulations, revisions, amendments,
In order to achieve Sustainable Development Goals (SDGs) renewals & ensuring implementation:
collectively, Bangladesh Bank vide SFD circular no. 02
dated 1st December, 2016 has given instructions to all 1.1 Green Banking
scheduled Banks of the country to form (1) a separate
1.2 Corporate Social Responsibility (CSR)
“Sustainable Finance Division/Department/Unit” headed
by Head of Investment Risk Management Division to 1.3 Environmental & Social Risk Management
carry out CSR activities and Green Banking activities of Guideline and Sector-wise Environmental & Social
the Bank, (2) a “Sustainable Finance Committee” headed
by the most senior Deputy Managing Director of the Bank. Risk Management (to be developed in collaboration
Bangladesh Bank also instructed that the overall activities with IRMD)
of the “Sustainable Finance Department” and “Sustainable
Finance Committee” shall be supervised by the Risk 1.4 Green Office Guide
Management Committee (RMC) of the Board of Directors
1.5 Green Strategic Planning
of the Bank.
1.6 Gender Parity
As per Bangladesh Bank guideline, the existing CSR Unit
and Green Banking Unit (working under SME & Agricultural 2. To perform the following activities of the Bank related
Finance Division) already abolished. The separate to policy formulations, revisions, amendments,
“Sustainable Finance Department” already established renewals & ensuring implementation:
and headed by the Head of Investment Risk Management
Division. Initially, at least 05 (Five) regular employees 2.1 Carbon Footprint Measurement (to be done
posted in the Department excluding the Head of the annually)
Department.
2.2 Creating Climate Risk Fund and Management of
As such, Mr. Abdul Mamun Bhuiyan, FAVP & In-charge of the Fund
existing CSR Unit and Green Banking Unit along with one
dealing officer namely Mr. Md. Nazmul Hasan, SEO has 2.3 Green Marketing (to be done in collaboration with
started working under the “Sustainable Finance Department” Branding & Communication Department)
headed by Head of Investment Risk Management Division
3. To implement collaborative CSR activities in Financial
(IRMD) to carry out the CSR activities and Green Banking
Sector (e.g. Common Child Day Care Center),
activities of the Bank in line with the Bangladesh Bank
guidelines and Bank’s Policy in this regard. 4. To take initiatives regarding approval of Green Branch
from Bangladesh Bank and perform all other activities
Bangladesh Bank has given the organizational structure
related to establishment of Green Branch,
along with the specific Terms of References (ToRs) of (1)
Sustainable Finance Department, (2) Sustainable Finance 5. To integrate activities related to Sustainability
Committee. Bangladesh Bank also instructed that Risk Reporting [to be done in collaboration with Financial
Management Committee (RMC) of the Board of Directors Administration Division (FAD)],
of the Bank shall guide & oversee the overall activities of
Sustainable Finance Department and Sustainable Finance 6. To ensure implementation of SFD circular no. 01/2016
Committee. Accordingly a Term of Reference (ToR) of of Bangladesh Bank,
“Sustainable Finance Department” and “Sustainable 7. To comply with the guidelines given time to time
Finance Committee” have been proposed as under: by Bangladesh Government and Bangladesh Bank
regarding Sustainable Development Goals declared by
United Nations (UN),
8. To implement the instructions given time to time

by Bangladesh Government and Bangladesh Bank
regarding Green Banking, CSR, Sustainable Banking &
Sustainable Finance,

9. To submit all the prescribed statements regularly to Terms of Reference (ToR) of “Sustainable Finance
Bangladesh Bank regarding Green Banking and CSR Committee”:
activities of the Bank and coordinate all activities of
Sustainable Finance Department & maintain liaison 1. To provide approval of regular activities done by
with Bangladesh Bank, Sustainable Finance Department as well as conduct
monitoring & evaluation of the activities of Department
10. 10. To apply for signing participation agreement for at Management level.
all kinds of On-Lending/On-Blending (Refinance/
Pre-finance/Reimbursement) Scheme/Fund/Facility/ 2. To set yearly budgets of Sustainable Finance
Project and all other activities in this regard, Department and to evaluate the achievements against
the set budgets.
11. 11. To develop new product & financial instrument
related to Sustainable Finance & Green Finance 3. To ensure coordination and cooperation of all
and take necessary initiatives for Bangladesh Bank concerned Departments for implementing the
approval related functions, activities of Sustainable Finance Department.
12. 12. To submit progress report on the activities of Terms of Reference (ToR) of “Risk Management
Sustainable Finance Department at least monthly Committee” of the Board of Directors:
basis to the Sustainable Finance Committee of the
1. To formulate policy, provide guidance & approval
Bank and implement the recommendations of the
and monitor & evaluate the activities of Sustainable
aforesaid Committee,
Finance Department and Sustainable Finance
13. 13. To prepare the budgets for Green Finance, CSR, Committee.
Climate Risk Fund and Green Marketing of the Bank
2. To approve budgets proposed by Sustainable Finance
and take necessary steps to accord approval of those
Department.
budgets from the Risk Management Committee of the
Bank, 3. To approve the formation of Sustainable Finance
Department and Sustainable Finance Committee.
14. 14. To submit progress report on the activities of
Sustainable Finance Department at least quarterly Formation of Sustainable Finance Committee:
basis to the Risk Management Committee of the Bank
and implement the recommendations of the aforesaid Bangladesh Bank has given guideline to form a Committee
Committee, headed by the most senior Deputy Managing Director.
Other members include: Head of Investment Risk
15. To arrange necessary training on Green Banking, CSR, Management Division, Head of Investment Administration
Sustainable Banking & Sustainable Finance for the Division, Head of Special Asset Management Division,
Officials/Staffs of the Bank, Head of Corporate Banking Division, Head of Retail
Banking Division, Head of International Division, Head of
16. To conduct planning & strategic decision making
Risk Management Division, Head of Human Resources
and to take necessary initiatives for extending the
Division, Head of Financial Administration Division, Head
coverage, utilization and amount of Green Finance,
of Internal Control & Compliance, Head of Card Division,
Climate Risk Fund, CSR respectively and accord
Head of Logistic Support & Services Division, Head of
approval of those expansion activities from the
Branches & Establishment Division, Head of Marketing &
Hon’ble Board of Directors through the Sustainable
Communications, Head of Information & Communication
Finance Committee.
Technology Division and One Official from Sustainable
17. To provide necessary assistance to Bangladesh Finance Department.
Bank Inspection Team and Bank’s Internal Control &
Compliance Division for conducting audit on Green
Banking, CSR, Sustainable Banking & Sustainable
Finance activities.

Green Banking
Bangladesh Bank has recognized SIBL as one of the Top Ten Private Commercial Banks for their contribution to Green
Banking activities across the country. We have unified our sustainable operations under the “Green Banking Unit” equipped
with permanent employees. The Audit Committee of the Board is selected as the High Powered Committee of our Green
Banking Unit for reviewing the Green Banking activities. Our Green Banking Policy Guidelines and Green Office Guide have
been circulated to all our employees for creating awareness on Green Banking activities & providing instructions about
conserving energy, water, saving paper, etc. Our Green Strategic Plan is enhanced to define our strategy in the coming
years. SIBL developed its own Environmental Policies, which proves our commitment to the Environment for a sustainable
future. As a Bank we play an intermediary role between economic development and conservation of the environment. Our
Green Banking activities are on multidimensional areas which include both in-house Green activities and external green
activities towards supporting Green Economy. In 2019, as part of our Green Banking initiative SIBL has spent significant
amount for Green establishment, installation of solar panels, environment friendly brick plant based on HHK (Hybrid
Hoffman Klin) technology etc.
Green Banking initiatives are multi-stake holder approach and are never ending process, the implementation is possible
only when collective efforts of all are being made.
Sl. Name Achievement

Sustainable Finance Department has been restructured on 15.01.2017 for smooth
01. Formation of Sustainable Finance Department
functioning of Green activities.
02. Circulation of Environment Due Diligence (EDD) Environment Due Diligence (EDD) checklist is being Circulated and practiced.
03. Circulation of Environment Risk Rating (ERR) Environment Risk Rating (ERR) is being circulated and practiced.
04. Circulation of Green Office Guide Green Office Guide checklist is being monitored regularly.
05. Formation of Green Banking Policy Green Banking Policy of SIBL has been approved by the Board of Directors of the Bank.
Environment and Social Risk Management (ESRM) is being circulated and
06. Circulation of Environment and Social Risk Management (ESRM)
practiced.
• e-Circular system has been introduced.
• e-Newsletter has been introduced replacing paper book.
07. Some Green Event • Solar panel installed in some branches.
• Green Banking has been focused in the Annual Calendar. Such endeavor
has widely been accepted and applauded.
Year-2019 Year-2020
Particulars
Disbursement Outstanding Disbursement Outstanding
ETP
Finance for installation of ETP - - - -
Projects financed having ETP 1842.05 2842.59 - 5221.24
Bio-gas Plant 47 67.18 - 0
Solar Panel/Renewable Energy Plant 11.44 17.24 4.65 8.25
Hybrid Hoffman Kiln (HHK) - - - -
Projects financed in Brick fields having Zigzag &
3099.54 1937.19 635.19 1723.63
Improved technology
Hazardous waste treatment facility - - - -
Waste Water Treatment Plant 3667.49 1819.68 - 0
Plastic Waste Recycling Plant
27 47.52 - 0
(PVC, PP, LDPE, HDPE,PS)
Green Establishment 1076.5 3409.07 - 0
Energy Eficiency (LED) - - 5.59
Others 2869.44 0 - 2698.35
Total 12640.46 10140.47 645.43 9651.47

Green Banking Initiatives of the bank
(Figure in Million)
Green Banking Initiatives Yr-2019 Yr-2020
ATM (Number) 108 115
No. of Own ATM 108 115
No. of Shared ATM Under NPSB Under NPSB
Online Banking
No. of Total Branches 161 168
No. of Branches with online coverage 161 168
Internet Banking
No. of Accounts facilitated with Internet Banking 8,116 10,248
% of Accounts facilitated with Internet Banking 2.42% 2.93%
No. of Accounts facilitated with Mobile Banking/SMS Alert Banking 114807 130276
% of Accounts facilitated with Mobile Banking/SMS Alert Banking 34.18% 37.22%
No. of Training Programs/Seminars/ Workshops/Awareness Programs Exclusively
14 05
conducted for Green Banking
Employees 584 171
Customer - -
Progress of Green Finance:
Year-2019 Year-2020
Total Investment/Term Investment Disbursed (Funded) 292,376.79 60,171.90
Direct Green Finance (Disbursed) 12640.46 645.43
Indirect Green Finance (Disbursed) 0.00 0.00
Total Green Finance (Disbursed) 12,640.46 645.43
Direct Green Finance as % of Total Investment Disbursement 4.32% 1.07%
Recovery Performance
SSpecial Asset Management Division (SAMD) of SIBL has been performing to recover the overdue, classified and written-off
investments of the Bank throughout all of its Branches since inception. This Division also undertakes different initiatives for
recovery of overdue, classified and written-off investments in various ways such as settlement of written-off investments
under the existing legal framework of the country as well as settles the matter outside the court if and when required.
Special Asset Management Division (SAMD) is also engaged in handling all other legal matters of the Bank. On-site, Off-
site, legal affairs, reporting and execution of decision desks are continuously working for recovery and regularization of
Bad Assets. SAMD also approves rescheduling/ restructuring of the proposals only in accordance with Bangladesh Bank
directives from time to time.
During the year 2020 recovery from written-off investment was Taka 9.65 million which was Taka 25.6 million during the year
2019 from the same. Till 2020 total 1,364 cases/ suits are decreed/ disposed in favor of the Bank against total investments
of Taka 14,368.52 million. In 2020 total amount of Taka 367 million has been recovered from classified investments.
Different high-powered committees/ teams have also been formed to implement the recovery policies of the bank as well
as to monitor the recovery of investment. These committees/ teams are being engaged with achievement of branch-wise
recovery target from overdue, classified and written-off investments which has been set by the Head office yearly. For
maintaining the strong monitoring particulars assignments have also been given to Head Office executives/ officials to see
the progress of recovery on off-site basis.

SAMD use to arrange meeting with clients both at Head Office and at branch frequently as and when required. In these
meetings, overall progress are being evaluated regarding recovery from the bad/ written-off investments on the basis of
previous commitments given by clients. Besides, assigned executive/ officials have been brought under accountability to
get progress towards the recovery.
To decrease NPL of our Bank, 03 (three) Special Assignment Committees (SAC) has been formed by SAMD to find out
the untraceable clients and monitor the up-to-date condition of the legal procedures whose suit already filed in the court.
Among them 02 (two) committee formed for Dhaka Region and 01 (one) committee formed for Chattogram Region. The
works of SAC is being monitored from Head Office for better results. Debt Collection Unit (DCU) has also been formed to
look after and strengthen recovery from NPL.
Task Force meeting have been done with concern branches to strengthen the recovery from the overdue and classified
accounts. Respective Branch Manager & recovery related officers of classified based Branches has submitted all the
particulars of the overdue, classified and written off (if any) investments clients through different statements before the
committee. The committee discuss the same and advise the Branches how to recover their overdue, classified and written
off investments. In some cases, appropriate legal action have also been taken against the default investment clients to
realize Bank’s dues as early as possible.
Investment Income
The bank has registered an income from investment of Taka 27,036.27 million under different mode of investment accounts
in the year. A comparative position on income received from different mode of investment in the year 2020 and 2019 is
given below-
(Figure in Million Tk.)

Mode Year 2020 Year 2019 Growth
Profit on Murabaha 120.79 206.04 -41.38%
Profit on Bai-Muazzal 18174.06 18,263.67 -0.49%
Profit on Hire-Purchase 5563.99 6,379.69 -12.79%
Profit on Musharka 21.53 32.44 -33.61%
Profit on Bai-Salam 86.42 83.03 4.07%
Profit on Quard against MTDR, Scheme and others 614.42 532.99 15.28%
Profit on Inland Document Bill Purchased 339.04 392.54 -13.63%
Profit on Foreign Document Bill Purchased 1053.06 931.36 13.07%
Profit on Ijarah 62.37 79.42 -21.47%
Profit on Investment against Mudaraba Deposit with other banks and NBFIs 715.99 658.71 8.70%
Profit on other investments (Card, Wakalat fee etc.) 208.44 213.65 -2.44%
Profit on Mudaraba 76.16 23.88 218.93%
Total 27,036.27 27,797.43 -2.74%
Capital Expenditure
During the year under review, the total capital expenditure on acquisition of fixed assets was Taka 3,610.69 million which
includes Taka 800.41 million towards Furniture & Fixtures, Taka 911.50 million for Office Equipment & Computers Software
and Taka 17.52 million towards purchase of vehicles and Taka 0.66 million towards purchase of Books and References.
Non Funded Investment

The year under review, the bank had a collective effort in non-funded business from the first day of 2020. The Bank
undertook a target on foreign exchange business for the year 2020 for Taka 207,250.00 million and accordingly achieved
141,287.08 million. The bank successfully managed to earn a commission & exchange income of Tk. 1,421.21 million in
2020 against Tk. 1,465.83 million of 2019. Despite the volatility of foreign currency throughout the year 2020, the bank
accumulated an exchange gain of Taka 774.84 million against Taka 783.40 million of 2019.

Income from Investment in Shares & Securities
Throughout the year, the country observed the capital market as unsupported, fade and confidence less of the investors
irrespective of corporate and individual. SIBL had an Investment outstanding of Taka 18,487.37 million in Bond, Government
security, Quoted & Unquoted Shares, Preference Share, Bond & Government Security. This year earnings from this segment
has been recorded Taka 762.38 million against Taka 760.57 million in 2019.
Significant variance in operating results between Quarterly and Annually
While analyzing the operating results by month to month and quarter to quarter, no significant deviation was found. The
operating results for the 4 quarter of the year 2020 are given below with remarks:

(Un-audited & published) Audited
SI Accounting Head
31.03.20 30.06.20 30.09.20 31.12.20
1 Investment Income 7025.79 13496.1 19891.39 27036.27
2 Profit Paid on deposits 5431.33 10401.24 15063.4 19484.79
3 Net Investment Income 1594.46 3094.86 4827.99 7551.48
4 Income from Investment in Shares & Securities 129.42 212 392.98 762.38
5 Commission, Exchange & Brokerage 369.58 662.52 1005.19 1421.21
6 Other Operating Income 135.49 313.4 406.06 631.01
7 Total Operating Income 2228.95 4282.78 6632.22 10366.08
8 Operating Expenses 652.61 1096.4 1693.86 2455.26
9 Salaries & Allowances 756.37 1689.86 2724.5 3567.61
10 Other Operating Expenses 1408.98 2786.26 4418.36 6022.87
11 Operating Profit before provisions & taxes 819.97 1496.52 2213.86 4343.21
SIBL Subsidiaries
SIBL Securities Limited: SIBL Securities Limited, a wholly owned subsidiary of SIBL, was incorporated as a Public Limited
Company under the Companies Act, 1994 vide certification of incorporation no. C - 85876/10 dated 20 July 2010 and
obtained its certificate of commencement of business on the same day. SIBL Securities Ltd. is corporate TREC holder of
Dhaka & Chittagong Stock Exchange Ltd. The company started its commercial operation in the month of January 2012.
The principal place of business is the Registered Office at 15 Dilkusha C/A, Dhaka-1000. The principal objectives of the
company for which it was established are to carry on the business as stockbroker and stock dealer in relation to shares and
securities transactions, other services related to the Capital Market and other activities as mentioned in the Memorandum
and Articles of Association of the company.
As on 31st December 2020, the company has made a profit after tax 8.29 million Taka as against Taka 5.10 million in 2019.
Total paid up capital of this company is Taka 1230 million.
SIBL Investment Limited: SIBL Investment Limited, a wholly owned subsidiary of SIBL, was incorporated as a Public Limited
Company under the Companies Act, 1994 vide certification of incorporation no. C - 86726/10 dated 30 August 2010 and
obtained its certificate of commencement of business on the same day. The principal place of business is the Registered
Office at 15 Dilkusha C/A, Dhaka-1000. The principal objectives of the company for which it was established are to carry
on the business in relation to shares and securities transactions, to underwrite, manage and distribute the issue of stocks
etc. and other services as mentioned in the Memorandum and Articles of Association of the company. Total paid up capital
of this company is Taka 250 million.

The Bank holds the major shares of the these two subsidiary companies as mentioned below-
Sl. No. Name of Subsidiary Companies % of holding of shares by the Bank

1. SIBL Securities Ltd. 99.99%
2. SIBL Investment Ltd. 99.99%
Segment Analysis - Business Segment

SIBL SIBL
Off-shore
Particulars SIBL Securities Investment Total
Banking Unit
Ltd. Ltd.
Income 10,289.98 76.16 82.32 6.60 10,455.06
Less: Inter-segmental Income - - - 0 -
Total Income 10,289.98 76.16 82.32 6.60 10,455.06
Operating profit (Profit before
10,289.98 76.16 82.32 6.60 10,455.06
Unallocated expenses and tax)
Allocated expenses 6,015.55 7.38 50.27 0.02 6,073.22
Provision against loans and 1,297.25 0 8.16 2.66 1,308.07
Profit / (loss) before tax 2,971.86 68.78 23.89 9.24 3,073.77
Income tax including deferred tax 1,489.71 0 15.6 1.19 1,506.50
Net profit 1,482.15 68.78 8.29 8.05 1,567.27
Segment assets 377,626.29 4,418.42 2,906.27 258.98 385,209.96
Segment liabilities 377,626.29 4,418.42 2,906.27 258.98 385,209.96
Contribution to the National Exchequer

During the year under report, an amount of Taka 3,073.54 million was contributed to the national exchequer against Taka
4,373.38 million in the year 2019.

Corporate Income Tax 1489.71 1612.58
VAT Collection at Sources 280.81 300.75
Tax Collection at Source 2483.33 2187.02
Excise Duty 309.39 273.03
Total 3,073.54 4,373.38

Risk Management Investment Risk Management, which has been prepared in
the light of broad guidelines provided by Bangladesh Bank
The risk management of the Bank covers a wide spectrum for the banking industry. The bank’s formulated investment
of risk issues and the 6 (six) core risk areas of banking policies in compliance with regulatory requirement covers
i.e. investment risk, foreign exchange risk, internal control investment assessment, collateral requirements, risk
& compliance risk, money laundering risk, ICT risk and grading and reporting, documentation and legal formalities
asset liability management risks. To ensure sustainable and procedures along with up to date clean CIB report of
and consistent growth, SIBL has developed sound risk the client.
management policies and framework as per Bangladesh
Bank guidelines. The Board of Directors of SIBL reviewed The bank has incorporated a segregation of duty among
all the risk management policies and frameworks regularly. the officers/ executives who are involved in investment
A Executive Risk Management Committee (ERMC) was activities to mitigate the risk to an acceptable level. A
formed to ensure proper and timely risk management separate Corporate Division has been formed at Head
in every sphere of the bank. The Board has been made Office, which is entrusted with the duties of maintaining
responsible for identifying the risks and formulation of effective relationship with the customer, marketing of
appropriate strategies to control inherent banking risks. investment products, exploring new business opportunities
The Committee submits decisions and recommendations etc. Moreover, investment approval, administration,
to the Board’s Risk Management Commint (BRMC) and monitoring and recovery function has been segregated.
Board on quarterly basis for further reviews and guidance For this three separate units have been formed within
in the interest of the stakeholders. To streamline the risk the credit division namely Investment Risk Management
management system of the bank, a separate division called Division (IRMD), Investment Administration Division (IAD)
“Risk Management Division” has been formed. The Division and Special Asset Management Division (SAMD).
is staffed with some brilliant and young professionals for
consolidated risk management. Besides that, a Executive Operational Risk
Risk Management Committee is actively working to focus
Bangladesh Bank defines operational risk as the risk of
the entire risk management system of the bank. We are
loss resulting from inadequate or failed internal processes,
much concerned about the business risk and its proper
people and systems or from external events. This
management so that the risk and return could be optimized.
operational risk also includes legal risks but not strategic
Our policy envisages that the management would pay
and reputational risks. This can also arise from unexpected
special attention to reduce the risk to an acceptable level
losses due to physical catastrophe, technical failure and
apart from prudent controls over the Bank’s assets.
human error in the operation of a bank, including fraud,
Business Risk Analysis failure of management, internal process errors and
unforeseeable external events. Operation risk is measured
Risk is an integral part of financing business and thus every as per Basel III guideline of Bangladesh Bank. Operational
financial institution is exposed to risk of different types and risk is measured and reviewed on quarterly basis and
magnitudes. So, the prime responsibility of every financial proper capital is maintained against the operation risk
institution is to manage its risk so that its return from faced by the bank.
business can be maximized. As a prudent and responsible
financial institution, the bank attaches top priority to Internal Control and Compliance
ensuring safety and security of the finances that are being
Internal control facilitates systematic and orderly flow of
extended. Risk Management for SIBL is performed at
various operational activities within the organization. To
various levels of the bank. By formulating policy regarding
confront operational risk, SIBL follows “Internal Control and
profit rate, market, liquidity, currency, operational as well as
Compliance guidelines” which is approved by Bangladesh
investment risk, SIBL manages its business risks and aims
Bank. To ensure that sound monitoring system is placed
to mitigate them.
inside the organization, Audit committee has been formed.
Credit/Investment Risk Moreover, SIBL has introduced the “Internal Control and
Compliance Division (ICCD)” at Head Office staffed with
Investment risk is one of the major risks faced by the bank some experienced senior Bankers rest with the power and
which arises from the potential of failure of a counter party duties to train the employees of the bank, give direction,
to perform according to contractual agreement with the minor, audit and establish control on day to day operational
bank. The factors involved here may be the unwillingness procedures and statutory and non-statutory compliances.
of the counterparty as well as adverse economic
condition. To address the risks, SIBL follows a guideline on

Money Laundering Equity Financing Risk
Money laundering refers to a financial transaction scheme Equity financing risk is defined as loss due to change in
that aims to conceal the identity, source, and destination of market price of equity held by the bank. SIBL has significant
illicitly obtained money. To fight with money laundering SIBL amount of investment in equity portfolio. To measure,
has framed an appropriate Money Laundering Prevention identify and reduce this kind of risk, the bank practicing
Policy Guideline so that it could be sufficient to protect the mark to market valuation of the share investment portfolios
bank from tribulations of money laundering. Besides that, which was reflected through the bank’s balance sheet as
a central compliance unit has been formed at Head Office provisions for diminution in value of investment in shares.
in SIBL and a designated person has been nominated to
supply any information if required as per Money Laundering Foreign Exchange Risk
Prevention Act 2002 and Money Laundering Prevention
Foreign-exchange risk refers to the potential for loss from
circulars. Chief Anti Money Laundering Compliance Officer
exposure to foreign exchange rate fluctuations. This can
(CAMALCO) has been designated at Head Office and Branch
be the current or prospective risk to earnings and capital
Anti Money Laundering Compliance Officers (BAMALCO)
resulting from adverse movements in currency exchange
has been nominated at branches. The second man of the
rates. Managing foreign exchange risk involves prudently
ninety four branches of SIBL have been complying the
managing foreign currency positions in order to control,
responsibility for their respective branches as Branch Anti
within set parameters, the impact of changes in exchange
Money Laundering Compliance Officers (BAMALCO) as per
rates on the financial position of the bank. Introduction of
the direction of Bangladesh Bank.
market based exchange rate of Taka has resulted in both
Market Risk trading opportunities and associated foreign exchange
volatility risk. SIBL adopted foreign exchange risk manual
Market risk refers to the risk of losses in on and off-balance and investment guideline of Bangladesh Bank to identify
sheet positions arising from flactuations in market prices. and combat the foreign exchange risk. International
It arises due to change in different market variables like department of the bank independently conducts the
profit (interest) rate, exchange rate, availability of liquidity transactions relating to foreign exchange and responsible
with the lenders/ depositors, prices of securities in the for verification of deals and passing entries. Besides
stock exchange. Market risk is measured as per Basel III that, the bank’s Internal Control and Compliance Division
guideline of Bangladesh Bank. Market risk is measured performs internal audit to supervise the activities of
and reviewed on quarterly basis and proper capital is the foreign exchange departments which measures the
maintained against the operation risk faced by the bank. effectiveness and efficiency of the division.
The risk arising from market risk factors such as interest Liquidity Risk
rates, foreign exchange rates, and equity prices have been
discussed below: Liquidity risk is the probability of loss arising from a
situation where there will not be enough cash and/or
Risk on Rate of Return cash equivalents to meet the needs of depositors and
Investment profit rate risk is the potential impact on the borrowers, thus sale of illiquid assets will yield less than
bank’s earnings and net asset values due to changes in their fair value. This also arises when the cushion provided
market interest rates. This can arise due to mismatches by the liquid assets are not sufficient enough to meet
between maturities of investment and funds, imbalance maturing obligations. Liquidity risk is often triggered by the
between supply and demand of fund for investment etc. consequences of other financial risks such as credit risk,
Besides that, increase in profit rate results in subsequent interest rate risk, foreign exchange risk, etc. For instance, a
adjustment on the deposit rates whereas the pricing of large loan default or changes in interest rate can adversely
investments cannot be done instantaneously giving rise impact a bank’s liquidity position. SIBL’s Asset Liability
to such risk. Early repayment of investment, early deposit Committee (ALCO) is entrusted with the responsibility of
encashment/withdrawals are additional factors of such managing short-term and long-term liquidity and ensuring
risk. The Asset Liability Committee (ALCO) of SIBL is the adequate liquidity at optimal funding cost. ALCO also
primary body which looks after and monitors investment reviews liquidity requirement of the bank, the maturity of
profit rate structure. The committee also evaluates any assets and liabilities, deposit and lending pricing strategy
market risk that arises from the regulatory pressure thus and the liquidity contingency plan.
reducing the profit rate. Moreover, ALCO committee is
always watchful to adverse movement of the different
market variables.

Reputation Risk Correspondent Banking Relationship
Reputation risk may arise from the possibility that negative In order to facilitate the Foreign Exchange (FX), Foreign
publicity regarding the bank and its business practices, in Trade and Other Foreign Currency (FCY) Business and
the territory or elsewhere through related entities, whether Transactions, International Division of the bank maintains
accurate or not, will adversely impact the operations proper and adequate corresponding channel with banks
and position of the bank. Reputation risk may also arise all over the world. International Division comes forward to
from an institution, or an affiliate, being domiciled in a play its role and not only felicitates foreign trade but also
jurisdiction where the legal and organizational framework works for the development and enhancement of foreign
for the regulation and supervision of financial institutions is correspondence relationship. The well experienced and
generally viewed as failing to meet international standards dedicated team of the division has established Standard
for the protection of consumers of financial services and Settlement Instructions (SSI) including arrangements in all
for the prevention of sheltering the proceeds of organized major currencies in the locations of international business
crime. Reputation risks are very difficult to measure but concentration. The bank maintains 28 Nostro accounts
significantly important to manage since many new banks in major countries and with reputed international banks
have created the market more competitive ever before. for the settlement of all foreign currency transactions
of our customers. As a part of its growth, International
Various Risks and approaches Division has been constantly developing and improving the
affiliation with foreign correspondent banks on reciprocal
Risk Management has become the most challenging job basis.
for any Bank operating now a day. SIBL has broadened
its risk management coverage and enhanced its risk Alternative Delivery Channel (ADC)
management function. Similar to regulatory reforms,
the bank revised its risk management approach, and we Social Islami Bank Limited believes in keeping abreast
are already in the process of restructuring the RMD’s with latest technology in order to provide our customers
operational components to comply with Bangladesh Bank’s with convenient and time saving solutions which ensure
guidelines. By prioritizing risk management effectiveness, banking transactions anytime and anywhere.
new staffs were appointed to boost capacity. Looking at
strategic boundaries, the bounds of our risk appetite are The Alternative Delivery Channel (ADC) Department of the
defined with all stakeholders in mind. The bank’s wide- bank is relentlessly working hard for the development and
ranging risk management expertise enables it to delegate integration of all technology based delivery channels for
responsibility regularly. Moreover, the bank can delegate the banking products and services. The department also
authority to suitably handle all aspects of risk. The matters plans and ensures smooth operation of service delivery
in relation to risks associated with banking business are though ATM’s, CDMs, Web systems, SMS and mobile
placed to before the Board of Risk Management on a phones etc. and enhance areas of delivery of customized
regular basis. services through these channels. The Department ensures
the operation of inland remittance service using all delivery
Preparing the Annual Financial Statements channels and also ensures quick and secure delivery of
foreign remittance as well using as much delivery channels
SIBL emphasizes mostly on the integrity and quality of its as necessary to make local and foreign remittance
financial statements. Suitable accounting policies have payments attractive, useful and popular.
been consistently followed for all financial statements, while
the accounting estimates are founded upon reasonable SIBL Cards
and prudent assessment. International financial reporting
standards (IFRSs) applicable in Bangladesh are adhered to In today’s modern world Credit Card is a very extensively
in the preparation of financial statements, unless otherwise used mode of financial transaction and it is widely known
stated. as “Plastic Money”. It has created an immense impact in
the life of the people all over the world. The same trend is
Going Concern Estimation being followed in Bangladesh too. Nowadays the popularity
of Islamic Credit Cards in Bangladesh Is growing by leaps
The preparation of financial statements has been and bounds as domestic and foreign banks are earning
undertaken on the understanding that the bank operates substantial profit through this product. An increased use
on a going concern basis. Looking at the bank’s financial of booth local and Dual Currency Islamic Credit Card is
performance, business portfolio and operational process, taking place side by side with the expansion of personal
the bank can clearly be considered a going concern. An banking service. Cross-border business and travels are
individual report on Going Concern is Annexed with this also helping the expansion.
report in the page no. 161
SIBL is always willing to offer new and Islami Shariah
compliant financial products to its clients. Though SIBL is
making late entrance in the card market, still we are the

market leader (holding 50% of total Islami credit card) for issuance of Islami Credit Card in the Islami banking arena. Our
Achievement, Planning, Requirement and Challenges for issuance of SIBL VISA Islami Card are furnished below:
Achievement for the year 2020
1. Credit Card issued in 2020 : 2,012 Cards

2. Number of issued Credit Card as on 31.12. 2020 : 17,293 Cards
3. Debit Card issued in 2020 : 19,813 Cards
4. Number of issued Debit Card as on 31.12. 2020 : 1,20,910 Cards
5. Number of Prepaid Card issued as on 31.12.2020 : 2,439 Cards
6. Profit from Jan’20 to Dec’20 : 6.10 crore
Sanction Credit limit as on 31.12.2020
7. : Tk. 221.59 crore
(BDT 194.59 crore + USD 0.32 crore)
8. Outstanding as on 31.12.2020 : Tk.79.00 crore
9. Discount Partners in 2020 : 25 Merchants
10. Total Discount Partners as on 31.12.2020 : 166 Merchants
11. EMI Partners in 2020 : 14 Merchants
12. Total EMI Partners as on 31.12.2020 : 82 Merchants
: i) Pohela Boishakh
ii) Ramadan
13. Campaign (Discount facility & Buy one get one offer)
iii) EID ul Fitr
iv) EID ul Azha
Plan of Card Department for the year 2021
1. Credit Card will be issue : 3,500 Cards

2. Debit Card will be issue : 50,000 Cards
3. Profit Target : 6.50 crore
4. Total Sanction Credit limit : Tk.230 crore
5. Total Outstanding : Tk.82 crore
6. Discount Partner : 50 Merchants
7. EMI Partner : 30 Merchants
8. Implementation of Fund Transfer process through ATM
9. Issuance of Dual Debit Card
Requirements
• Credit Card Background Skilled manpower
• New Sales Executives
Challenges
• Fraud Control : Fraud Control & Monitoring Software Setup
• Technological Advancement : Card Management Software Accusation
• PCI DSS Certification

Year wise summary
Particulars 2015 2016 2017 2018 2019 2020

Number of Debit Card 19868 40280 50151 74090 97515 19813
Number of Credit Card 6273 11417 14236 14567 16327 2012
Sanction Limit (crore) 114.55 162.35 195.95 199.65 212.18 221.59
Outstanding (crore) 27.58 48.15 70.99 93.95 72.00 79.00
Income (crore) 4.75 11.35 15.91 18.94 17.03 17.95
Expenditure (crore) 3.61 8.24 10.85 10.93 12.63 11.85
Net Profit (crore) 1.28 3.11 5.06 8.01 4.40 6.10
Centralized Trade Processing Unit (CTPU) and other Service Exporters can easily receive their hard
earned money from SIBL in CASH instantly or in their Bank
SIBL has established Centralized Trade Processing Unit account. We are able to reach remittance receivers residing
(CTPU) for serving customers in a more effective and in the deep corners of the country through the extensive
efficient way. For the branches around Dhaka Division Agent Banking network. We are now able to send
and Chittagong Division, two base stations have been remittances to any MFS (ie. bKash) accounts all around
established at Head Office, Dhaka and Agrabad Branch of Bangladesh. Consequences upon different initiatives
Chittagong respectively. taken by last one year, SIBL’s Foreign Remittance business
volume was 10433.00 million BDT in the year 2020.
All the branches under CTPU Dhaka and Chittagong are
able to serve their clients through these base stations. As Off Shore Banking UNIT
a result, processing becomes faster and efficient. It has
established the concept of any branch banking. Social Islami Bank Limited is operating off-shore Banking
Units as a separate business unit under the rules and
Centralized Remittance Processing Unit (CRPU) guidelines of Bangladesh Bank. Defying the probability in
the global financial market, SIBL OBU has scored a sizeable
Foreign Remittance services of Social Islami Bank profit in the first year of its operation. We hope these units
Limited caters the customer needs for fast, secure will play a vital role in the foreign trade business and
& easy money transfers to an extensive range of facilitate the valued customers by maximizing their benefit.
destinations. Standing by our commitment, we go all In the year 2020, the OBU has accumulated a Profit after
the lengths to remit your hard earned money safely Tax of Taka 68.78 million against Taka 100.63 million in
to your loved ones. With us not only you get a range of 2019.
high-class modem remittance solutions but also you
will get peace of mind which we believe counts to most. Payment Systems Department (PSD)
Social Islami Bank Limited established its Centralized The payment system is a key element of the banking
Remittance Processing unit on March 2008. The main sector that facilitates efficient functioning of the financial
purpose to establish this specialized unit was to encourage system. Considering the importance of having a modern
wage earner’s remittance through banking channel and to state-of-art Payment Systems Department (PSD) of SIBL
facilitate the distribution of such remittance to the ultimate has been actively working to implement a modern payment
beneficiary throughout the country within shortest possible system. At present PSD, SIBL centrally process, settled and
time. Social Islami Bank Limited is now maintaining agency monitored of BACPS, BEFTN & RTGS services.
agreement with various Exchange houses in the USA,
UK, Qatar, Oman, SPAIN, Australia, Bahrain, Malaysia BACH is the first ever electronic clearing house which has
and with Money gram, Western Union, Xpress Money, started live operation in Dhaka from October 7th, 2010. Later
Ria who has network throughout the world. Bangladeshi BEFTN is introduced that provides faster, safer and a more
Nationals working abroad can easily remit their hard efficient means of inter‐bank transfer on 28th February,
earned money to the intended beneficiary in Bangladesh. 2011. Gradually Bangladesh Bank introduced Real Time
SIBL is committed to provide best and hassle free service Gross Settlement (RTGS) system on 29th October 2015
in this regard. Inward remittance drawing agreement for transferring funds from one account of a bank to other
with Paypal Inc, USA (Xoom) and other emerging Fintech bank account on real-time basis.
companies like WorldRemit ltd, Freelancers of ICT industry

All the 168 branches & 68 sub branches of SIBL now under the compensation of key management personnel. For
BACPS, BEFTN & RTGS network. In the last quarter of the above purposes Social Islami Bank Ltd has provided
2019, PSD, SIBL successfully implemented BACH-II (live following disclosures in the financial statements:
operation), which supports multi-session and FCY (Foreign
currency) transactions i.e. USD, CAD, JPY, GBP, and EURO. Relationships between Parents And Subsidiaries
Multi session of BEFTN also boost up all the debit and
Disclosure between the transaction between SIBL and
credit payment instructions of BEFTN are exchanged
subsidiaries is mention in note 49.3 of audited accounts
among Scheduled Banks.
whereas it is mentioned that Tk. 900.00 million was related
Related Party Transaction to SIBL subsidiary company called SIBL Securities Ltd
and of Tk. 1090.02 million was related to SIBL Foundation
Related party refers to the controlling entity (either Hospital and Diagnostic center.
directly or commonly) or controlling individual or close
group/family members of such entity or individuals who Management Compensation
have substantial influencing power in management of a Key management personnel are those persons having
particular organization. Whereas related party transaction authority and responsibility for planning, directing, and
refers to those transaction with the entity/person as stated controlling the activities of the entity, directly or indirectly,
by way of transfer of resources, services, or obligations including any directors (whether executive or otherwise) of
between related parties, regardless of whether a price is the entity. [IAS 24.9] For this purpose relevant disclosures
charged. are given in note 30 and 31 of financial statements and
IAS 24 Related Party Disclosures requires disclosures about controlling the activities of the entity, directly or indirectly,
transactions and outstanding balances with an entity’s including any directors (whether executive or otherwise) of
related parties. The standard defines various classes of the entity. [IAS 24.9] For this purpose relevant disclosures
entities and people as related parties and sets out the are given in note 30 and 31 of financial statements.
disclosures required in respect of those parties, including
Credit Rating of SIBL

Rating Conducted by Emerging Credit Rating Limited (ECRL)
Alpha Credit Rating Limited (ACRL) has assigned AA+ (Pronounced as double A plus) long term credit rating and ST- 2 short
term credit rating to the Social Islami Bank Limited based on audited financials of 2020 and other available information up
to the date of rating declaration. The outlook on the rating is stable. The ratings are consistent with ACRL’s methodology for
this type of company. ACRL considered financial performance, capital base, asset quality, liquidity position, management
experience and prospect of the industry while assigning the rating. The assigned rating reflects the strengths of the Bank
which is backed by significant growth in earnings, deposits and investments, adequate capital coverage with high tier 1
capital, improved asset quality and well controlled liquidity position. Year wise credit rating of SIBL conducted by different
rating agency is presented below.
Date of Long Term Short Term

Valid till Rating Action Outlook Rating Agency
Declaration Rating Rating
Emerging Credit
08-Mar-17 07-Mar-18 Surveillance AA- ST-2 Stable
Rating Limited
Emerging Credit
08-Mar-18 07-Mar-19 Surveillance AA- ST-2 Stable
Rating Limited
Emerging Credit
08-Mar-19 07-Mar-20 Surveillance AA ST-2 Stable
Rating Limited
Emerging Credit
08-Mar-2020 07-Mar-2021 Surveillance AA ST-2 Developing
Rating Limited
Alpha Credit Rating
29-Mar-2021 28-Mar-2022 Initial AA+ ST-2 Stable
Limited

Rating Conducted by Moody’s
On 14 July, 2020, SIBL was assigned b2 long-term local and foreign currency deposit and issuer ratings by Moody’s.
The rating action follows the downgrade of Bangladesh’s Macro Profile to Weak- from Weak. The b3 Baseline Credit
Assessment (BCA) reflects the bank’s (1) weak asset quality, with risks arising from credit concentration and elevated
level of rescheduled investments (loans); (2) modest capital, which improved after the bank slowed growth and froze cash
dividends; (3) weak profitability, because of its poor asset quality and reliance on expensive time deposits for funding; and
(4) tight funding and liquidity, as Islamic banks are subject to less stringent liquidity requirements than conventional banks.
Category Moody’s Rating

Issuer Rating B2
Outlook Negative
Counterparty Risk Rating B1/NP
Bank Deposits B2/NP
ST Issuer Rating NP
Disclosure of ratings given by various rating agencies for instruments issued by the bank:
SIBL issued the following subordinated bond to support and strengthen Tier-II capital base of the bank under Basel-III
capital regulation of Bangladesh Bank. The present credit rating of the Bank and the Instruments issued by the Bank are
as follows:
Date of Rating Long Term Short Term

Rating of Valid till Outlook Rating Agency
Declaration Action Rating Rating
28-Mar- Alpha Credit
Entity 29-Mar-2021 Surveillance AA+ ST-2 developing
2022 Rating Limited
SIBL Mudaraba Emerging Credit
22-Apr-2020 21-Apr-2021 Surveillance AA- N/A developing
Subordinated Bond Rating Limited
SIBL 2nd Mudaraba 05-Sep- Emerging Credit
06-Sep-2020 Surveillance AA- N/A developing
Subordinated Bond 2021 Rating Limited
SIBL 3rd Mudaraba Emerging Credit
30-Apr-2020 29-Apr-2021 Surveillance AA- N/A developing
Subordinated Bond Rating Limited
SIBL Mudaraba 11-Nov- Alpha Credit
10-Nov-2020 Initial
Perpetual Bond 2021 Rating Limited
Foreign Exchange Business

Foreign Exchange Business stood at Tk. 141,287.08 million in 2020 against Tk. 159,583.03 million in 2019. The break-up of
the foreign exchange business is as under-
Fig. in million
Particulars 2016 2017 2018 2019 2020
Import 104,270.60 121,809.50 93,002.80 88,911.60 76,966.50
Export 49,766.00 58,315.90 63,065.90 60,079.50 51,144.70
Remittance 13,345.70 21,911.60 22,521.80 10,591.90 13,175.88
Total 167,382.30 202,037.00 178,590.50 159,583.03 141,287.08
Over the last few years, the foreign trade business of the bank has gained a stable expansion. However, strategically the
bank is concentrating on minimizing the trade gap by careful selection of import business and stimulation of diversified
export businesses. Presently, SIBL has 22 AD branches and two Centralized Trade Processing Units, through which the
bank has handled total foreign trade of Tk. 141,287.08 million during the year 2020. The sluggish trend in the foreign
Exchange business in 2020 is due to the outbreak of the pandemic. However, target for foreign exchange business for the
year 2021 has been fixed at Tk. 210,500.00 million with almost 50% growth in target to increase the market share of the
bank in the industry.

SIBL is highly committed to conduct its foreign exchange CORRESPONDENT BANKING RELATIONSHIP
business by ensuring compliance in the foreign exchange
In order to facilitate the Foreign Exchange (FX), Foreign
regime. Therefore compliance of guidelines, policies,
Trade and Other Foreign Currency (FCY) Business and
procedures and other instructions of the Central Bank have
Transactions, International Division of the bank maintains
been ensured in conducting foreign exchange businesses.
proper and adequate corresponding channel with banks
Besides, continuous relationship with regulatory bodies
all over the world. International Division comes forward to
have been maintained for obtaining earliest disposal for
play its role and not only felicitates foreign trade but also
special kind of foreign exchange transactions, so that
works for the development and enhancement of foreign
the bank can address special kind of foreign exchange
correspondence relationship. The well experienced and
business requirement of the clients.
dedicated team of the division has established Standard
Import Business: Settlement Instructions (SSI) including arrangements in all
major currencies in the locations of international business
Total Import business of the bank stood at Tk. 76,966.50 concentration. The bank maintains ample number of
million during the year 2020 as against Tk. 88,911.60 SWIFT RMA and 28 Nostro accounts in major countries and
million and Tk. 93,002.80 million in the year 2019 and with reputed international banks for the settlement of all
2018 respectively. Bank has carefully facilitated the import foreign currency transactions of our customers. As a part
business to improve its asset quality. Besides, the bank’s of its growth, International Division has been constantly
strategic decision to reduce its import business is mainly developing and improving the affiliation with foreign
driven by its aim to reduce trade gap and achieve ability correspondent banks on reciprocal basis. As a result, the
to support its foreign currency demand from own source. bank in the year 2020, has been able to accommodate a
However, in order to support the import demand during the substantial amount of credit facility for its import clients.
ongoing pandemic, the bank has decided to substantially
increase its import target to Tk. 116,000 million in the year INTERNATIONAL TRADE
2021. One of the core activities of the bank is to facilitate
International Trade through export and import financing.
Export Business: To provide faster and quality services to the foreign trade
clients, SIBL is operating two CTPUs, one in Dhaka and
Total Export Business of the bank stood at Tk. 51,144.70
another in Chottogram in addition to 22 AD branches.
million during the year 2020 as against 60,079.50 million
These two CTPUs comprising of experienced foreign
and Tk. 63,065.90 million in the previous year 2019 and
trade officers are providing trade services in an efficient
2018 respectively. Achievement of our export business
manner, which is enabling the bank to ensure discipline
was 66% of that of the target in 2020 despite the negative
and enhance monitoring in the foreign trade regime of the
impact of the Covid-19. However, bank has intended
bank. Currently, SIBL has arrangement with PrimaDollar
to increase its export market share by setting an export
Operations Limited for providing factoring facility to its
business target of Tk. 78,500.00 million.
exporter clients. The respective desk officers at branch
Remittance Business: level are continuously liaising with the exporter clients for
availing this effective trade settlement process.
Despite the adverse effect of the pandemic on the overall SIBL pledges for digital centralization to ensure excellence
economy, the country has observed a record inflow of in foreign trade business. The bank has integrated the
wage earner’s remittance which has help the country to SWIFT system with its Core Banking Software ABABIL, so
accumulate a record reserve and a positive current account that SWIFT transactions can be passed through CBS and
balance. In tandem with the country, SIBL has also been thus greater control over foreign exchange transactions
able to mark high positive growth of 24% in wage earner’s can be ensured. We have a Sanction Screening Software
remittance inflow in the year 2020. Total remittance of the in place to prevent money laundering and combat terrorist
bank stood at Tk. 13,175.87 million during the year 2020 financing which results in boosting the image of the bank.
as against Tk. 10,591.93 million In year 2019. The Target Payment Control Software (PCS) has been installed to
for our remittance business during the year 2021 has been escalate monitoring over cross-border transactions by
fixed at Tk. 16,000.00 million with an anticipated growth identifying unusual transactions. Besides, the bank has
of 21%. the Global Payment Initiate (GPS) system in place which
will enable the bank to trace the whereabouts about of
payment, whether the payment has been received by its
rightful beneficiary and above all the costs charged at
different stages of the payment can be traced.

Off Shore Banking Business Human Resource Development
Social Islami Bank Limited is operating off-shore Banking Human Resource is the corner stone for accelerated and
Units as a separate business unit under the rules and sustained development of any organization. The Bank
guidelines of Bangladesh Bank. Defying the probability in recognizes the importance of skilled Human Resources for
the global financial market, The bank expects the unit will overall growth of the Bank. The meritorious and talented
be able to play a vital role in the foreign trade business human resources team is the key to continuous development
and facilitate the valued customers by maximizing their of the organization. Qualified human resources are an
benefit. In the year 2020, the OBU has accumulated a important source of competitive advantage. To attract
Profit after Tax of Taka 68.78 million in 2020 against Taka talented human resources team and to create brand image
100.63 million in 2019. In the year 2020 OBU has borrowed the Bank has formulating and executing HR systems—
USD12.00 million funds from abroad which expected HR policies and activities—that produce the employee
to increase to USD 100 million in 2021. To facilitate this competencies and behaviours which the Bank needs to
target, the bank has engaged a top UAE based financial achieve. The Bank has been trying to ensure maximum
advisory firm to procure USD 50 million overseas fund for output with minimum resources. So quality manpower with
the OBU. Besides, a number of reputed international bank good academic background is being recruited in all levels
has supported a substantial amount of trade loan for OBU. of the Bank every year for rendering quality services to its
customers.
WAGE EARNER’S REMITTANCE DEVELOPMENT:
SIBL has opened 43 (forty three) sub branches and 07
International Division is in continuous effort to encourage (seven) new branches in the year 2020. Now SIBL has
expatriate Bangladeshis living abroad for remitting funds become a Bank of 168 Branches. For this reason a good
through banking channel and has established remittance time was spent upon the recruitment of experienced
drawing arrangements with reputed exchange houses/ bankers and entry level employees like Probationary
money transfer companies around the world. At present Officers, Trainee Officers & Junior Level Officers. The total
the bank has remittance drawing arrangements with 31 manpower strength of the Bank was 3100 as on 31st
internationally reputed exchange houses spread all over December 2020.
the world for this service. The Division is continuously
endeavoring to increase its remittance network and to SIBL is an employee welfare-oriented organization. For
connect new destinations of concentration of expatriate this reason, the management of the Bank always tries to
Bangladeshis. A Centralized Remittance Processing Unit sort out all possible ways it deems beneficial to promote
(CRPU), equipped with skilled and experienced work its employees’ professional skill and efficiency. It has its
team along with modern and sophisticated software, own Training Institute, which rendered useful training to
has been working relentlessly to improvise and monitor 2859 employees last year. Eminent Bankers, scholars, and
the remittance service. To facilitate rehabilitation of the other resource persons were invited to deliver lectures.
returning expatriates, SIBL has developed an investment Besides, a good number of employees were sent to
product with relaxed conditions and at cheaper rate. Bangladesh Bank Training Academy, Bangladesh Institute
Besides, SIBL has declared a lucrative incentive package of Bank Management, Bangladesh Association of Banks,
for the wage earner remitters. To inspire the expatriates Bangladesh Foreign Exchange Dealers Association, the
in sending remittance through legal channel, SIBL is Central Shariah Board for Islamic Banks of Bangladesh and
paying 2% government incentive, paying 1% extra profit on many other reputed institutions of the country for training
savings account and 0.50% extra profit on term deposit in 2020. Subsequently, it is observed that the employees
opened using remittance. On the contrary, 1% less profit who were trained, render good performance. Besides that,
will be charged for any investment facility availed by the during the year under review, Social Islami Bank Training
expatriates from the bank. To motivate the expatriates Institute itself had conducted 03 (three) foundation training
toward savings of their hard earned money, SIBL is courses for 146 fresh Officers and 36 Training, workshops
awarding the expatriates with up-down air ticket for visiting and Seminar on different contemporary issues related
the country and also providing transportation facility to to banking industries where 2713 different Officers and
village home if a minimum balance is kept in the savings Executives had participated.
account.

Training of Staff conducted by Social Islami Bank Training Institute from 01st January, 2020 to December, 2020
Sl Name of the Training Number Participant Number

01. Training Course on “Export Procedure & Risk Management” 1 40
Training on “ Foundation Course in Banking for Probationary Officers and
02. 1 25
Assistant Officers”
03. Training on “ Foundation Course in Banking for Assistant Officers (Cash)” 2 81
04. Training on “ Foundation Course in Banking for Assistant Officers (General)” 1 40
Total 5 186
Workshop of Staff conducted by Social Islami Bank Training Institute from 01st January, 2020 to December, 2020
Participant
Sl Name of the Training Number
Number
Workshop on “AML & CFT with special session on Trade Based ML Prevention
01 5 290
Procedures “
02 Workshop on “Agent Banking Operation for officials of Link Branch “ 6 142
Workshop on “CIB Online Reporting & data correction” and “Collateral or Security
03 1 80
Reporting” on 07.03.2020, 04.04.2020, 11.04.2020 &18,04,2020 accordingly
Workshop on “Cash Bonus: 1 e 100 Campaign through Online” from 13.07.2020
04 4 161
to 16.07.2020
05 Workshop on “Refund of Hajj Registration Fees from the Accounts of 19 Branches” 1 19
Workshop on “Compliance on AML (Anti Money Laundering) & CFT (Combating
06 6 408
Financing of Terrorism)”
07 Workshop on “Search criteria Agent Banking Division and Fatullah Branch” 1 12
Workshop on “Incentives on Foreign Remittances to grow the Foreign Remittance
08 1 100
Business” on 12.08.2020 Through “ZOOM”.
Workshop on “Customer Service & Professional behavior” will be held on 19,
09 2 161
August 2020 at 03.00 pm Through “ZOOM”.
Workshop on “E-Account (KYC) will be held on 23, August 2020 at 03.00 pm
10 5 644
Through “ZOOM”.
11 Workshop on “Cyber Security in Banking Operation.” 2 264
Workshop on “Creation of awareness on suspicious Transaction as well as STR for
12 2 161
all BAMLCOs of our Bank”
Workshop on “Implementation of recommendation no. 3 of decisions taken at the
13 1 70
CAMLCO Conference, 2020” through ZOOM on 14.11.2020
14 Workshop on “ ISS Reporting” 2 161
Total 39 2673
Management of the bank has emphasized and specially focused on the development of employees and to bring out the
persons’ insider instinct into light, SIBL Training Institute (SIBL TI) has restructured aiming to create leaders.
SIBL is sincere to address its employee’s health problem. The bank has appointed one full time doctor for the employees
of Head Office and Dhaka city branches. SIBL placed First Aid Box in its premises to provide instant medical facility for
all employees as and when needed. We have help desk, who are always besides to their ailing colleagues and their family
members for proving all kinds of supports including pecuniary facility under SIBL Employees’ Superannuation Fund and
CSR.

In order to evaluate the level of efficiency, improve the healthy competition among the employees and in a way to generate
motivation for the employees, Employees’ Performance Evaluation and Key Performance Indicator (KPI) have been
introduced from time to time. Upon the evaluation, the employees are motivated and awarded with promotion, accelerated
promotion and other benefits. In addition to that, various types of drives are taken to keep and upgrade the standard of the
Bank.
Demographic distribution of manpower of SIBL:

Breakdown by age group for permanent employees
Age range Gender 2020 2019 2018 2017 2016 2015

< 30 years Male 567 502 502 380 382 413
Female 138 169 163 135 115 104
30-50 years Male 1791 1734 1687 1640 1464 1275
Female 415 394 363 336 293 251
> 50 years Male 174 137 119 101 103 84
Female 15 11 10 07 6 3
Total 3100 2947 2844 2599 2363 2130
Gender diversity among permanent employees
Employee Category Gender 2020 2019 2018 2017 2016 2015

Male 1549 1374 1352 1151 984 965
Entry level
Female 393 396 363 309 248 214
Male 942 961 921 824 804 695
Mid-level
Female 174 176 171 158 157 138
Male 41 38 35 146 161 112
Senior Management
Female 01 02 02 11 9 6
Total 3100 2947 2844 2599 2363 2130
Human Resource Accounting

Human resource accounting is the process of identifying and reporting the Investments made in the Human Resources of
an organization that are presently not accounted for in the conventional accounting practices. Social Islami Bank Limited
formally does not practice Human Resources Accounting but regularly works out and looks into some important areas for
mathematical and co-relational understanding on the main business factors. Given below is the considerable index to the
management on which human related decisions are taken:
Description Yr-2020 Yr-2019 Yr-2018 Yr-2017 Yr-2016 Yr-2015

Total number of employees 3100 2947 2844 2599 2363 2130
Total number of Branches 168 161 155 138 125 111
Employee Per Branch (nos) 18 18 18 19 19 19
Deposit per employee (million Tk) 103.99 97.37 87.22 88.03 80.64 65.7
Investment per employee ( millionTk) 96.97 89.37 83.83 80.82 73.72 61.36
Operating profit per employee (million Tk) 1.40 2.14 2.16 2.37 2.41 2.28
Salaries & Allowances per employee( millionTk) 1.15 1.15 1.10 1.12 1.03 1.03
Salaries & Allowances as percentage of Operating profit 82.14% 53.54% 51.21% 47.02% 42.82% 45.61%

Employee Benefits ICT SERVICES
Social Islami Bank Limited is very keen to establish and The ICT operation of the bank is always adopting latest
retain a very congenial working atmosphere. The bank has technology for providing quality of service and reaching
a competitive & unique pay structure for its employees banking facility at customer doorstep. Centralized core
and always keep track on the necessity of revision on the banking (CBS) solution has been implemented based on
passage of time that matches with the living standards islamic shariah principle which allows 24/7 online banking
of the employees in one hand and competitive with other support through internet banking, Mobile App, e-commerce,
banks on the other hand. At present, SIBL offering three ATM network. Clients can make banking from any branch
types of long term employee benefits of which Provident for deposit/witdraw, interbank transcation through BACH,
Fund and Gratuity Fund are approved by the Revenue Board BEFTN, RTGS services over the centralized system. The
and are funded liability for the bank. Sufficient provisions bank has secured client information by implementing
have been provided in the financial statements of the bank modern cyber defence system. The bank has implemented
for these two employee benefit funds as per International centralized Document Mangement System for reducing
Accounting Standard 19 Accounting for Employee Benefit. paper work as a green banking initiative by digitiging
Apart from these two, another welfare fund called “SIBL internal activities. Proposals being approved in digital
Employees’ Superannuation Fund’ has been maintaining workflow process with eleminiting a lot of paper works.
solely for the purpose of welfare of the employees of Machine readable account openning forms are being
the bank and also approved by NBR. All these funds are implemented for ensuring transperancy.
governed and maintained by separate trustee board and
funds are investing in very safe mode. EXTENDING BANKING SERVICES
The nature of the Provident fund is 10% contributory from
the both side of the employee and employer. The eligibility Customers gets online banking service from any SIBL
of such Provident fund is 5 years whereas the eligibility of branch including deposit/withdrawal facility without per
the gratuity fund to the employee is equivalent to 1 basic transaction service fees. Sub-branches are established
pay for 5 years services & equivalent to 2 basic pay for 7 to extend branch support at remote areas arround the
years services. country which are operated by the Bank officials under the
controlling branches cost effectively. SIBL provides Agent
Safety Measures Banking service to facilitate banking service to unbanked
people in remote areas. There exists 119 agent banking
Social Islami Bank Limited provides world class office outlets of SIBL at the moment and it has plan for openning
environment to its employees. Every branch of SIBL many new outlets at several corner of the country in new
is homogenously decorated with the provisions of air future.
condition, most modern safety office equipment and
machines and well structured office building facilitated by ANYTIME ANY WHERE BANKING
sewerage and electricity connection and security measures
like 24/7 close circuit TV camera, well trained security and Internet Banking and “SIBL NOW” mobile app of SIBL
gunmen, fire extinguishers etc. Design of Office / Branch brings anytime anywhere banking facility over internet.
is considered on the basis of sufficient free space, safe This supports fund transfer (same bank & other bank),
sewerage gas and electricity connections etc. SIBL has utility bill payment, mobile bill payment, credit card bill
the finest corporate Head Office at its own Office premises payment, Mobile Financial Services (bKash and Nagad)
of 90/1 Motijheel Commercial Area, Dhaka, City Center fund transfer services, QR Code based teller transaction,
level 19, 20, 21 , 22 , 28 & 29 measuring areas of 69,765 account statement view, location view of branches/booths
sft. featured by most modern equipment and facilities. etc services for clients.
Fire drill programs are organized by the bank at different SIBL cards provide e-commerce/online shopping facilities
location time to time. The bank has appointed one full to purchase goods and services over internet. Customers
time doctor for the employees of Head Office and Dhaka can withdraw cash and pay bill of cell phone operators
city area. The Board of Directors has already approved an using SIBL cards through own 115 ATM booths of SIBL and
Insurance policy including hospitalization benefit for the more than two thousand shared ATM booths of Q-cash
general emplyees of the bank. 40% discount rates have members. SIBL is working for enhancement of ATM service
been allowed to all employees of SIBL including the family for allowing fund transfer, utility bill payment etc features
members in all type of treatment and diagnostics at SIBL from ATM booths.
Foundation Hospital & Diagnostic Center. Morover, SIBL
has corporate agreement with United Hospital Limited to
allow facilities to the employees of the bank.

AGENT BANKING BUSINESS CONTINUITY PLAN
SIBL provides Agent Banking service in remote areas to SIBL established three layer Data Center (DC) structure for
facilitate banking service to unbanked people. There are ensuring business continuation and resilience of critical
162 agent banking outlets at several corner of the country services on unexpected disaster. The CBS system in
at present and the number of outlets are increasing day primary Data Center (DC) is syncronized at Near DC and
by day. Far DC through Real Application Cluster (RAC) and Active
Data Guard is implemented for high availability, data
REMITTANCE DISBURSMENT AND COLLECTION OF protection, and disaster recovery for enterprise data. The
BILLS/PAYMENTS Far DC is established at different seismic zone at Khulna.
SIBL is connected with XOOM, Western Union, World Remit, MANAGING CYBER SECURITY AND ICT RISK
Placid Express, MoneyGram, Ria, Instant Cash and many
other international exchange houses to allow remittance State of art secuirty solutions has been implemented
payment service. Moreover, SIBL has developed integrated for protecting the information assets of SIBL. SIBL has a
system with several organizations/institutes like WASA, continuous efforts for preventing cyber security threats.
DESCO, DPDC, PDB, Titas Gas, Bakhrabad Gas, Karnaphuli SIBL has implemented world class screening solution
Gas, Dept of Shipping, BAR Council, Asisan University, for scrutinising SWIFT messages and clients information
Wills Little Flower School, Pran-RFL, e-tendering etc for automatically. Barracuda Email Security Gateway has been
collecting fees/bills in favor of them and customers can implemented for protecting against inbound malware,
easily pay their bills at SIBL branches. In 2019 SIBL able spam, phishing, and Denial of Service attacks and ensuring
to collect funds of two thousand crore taka approximately that business productivity isn’t impacted by attacks through
through these systems. the email system. Our accountablity to the clients is strong
enough to build a relationship of trust. SIBL introduced
PAYMENT CARDS AND ATM SYSTEM SMS Banking for sending transaction notification alerts ,
account balance and dynamic password (OTP) for internet
SIBL cards provide e-commerce/online shopping facilities banking access.
to purchase goods and services over internet. Customers
can withdraw cash and pay bill of cell phone operators Green Banking Support
using SIBL cards through 115 ATM booths of SIBL and
SIBL is concerned to implement the concept of Green
thousands of ATM booths of other banks under Q-cash
Banking in its day to day banking business. The bank has
network. SIBL is working for enhancement of ATM service
introduced e statement which has remarkably reduced
for allowing fund transfer, utility bill payment etc features
the usage of hard copy. This statement is generated by
from ATM booths.
the system and sent to the customer automatically at
MODERN TECHNOLOGY FOR CORPORATE specified interval with full authentication and security.
Launching of E-statement is a process to support the
COMMUNICATION
concept of Go-Green to save the natural environment. SIBL
SIBL implemented modered communication systesms is using the most energy efficient IT equipments like IBM
for developing effective communication. The bank Rack Server which consumes less power, less space with
installed IP Telephony solutions to establish lowcost and maximum capacity. Most of the documents of the banks
easy communication system around the bank. Microsoft are converted into softcopy.
Exchange Mail Server has been implemented for efficient
usage of corporate email system. Smart phone devices are SME Program
provided for all branch managers and divisional heads in
Social Islami Bank Limited (SIBL) has been operating Small
head office/regional office with dedicated corporate SIM
and Medium Enterprise (SME) investment successfully
for keeping them connected.
with a view to unlock the potentials of the missing middle,
who are not properly addressed by the Corporate Banking
INTER BANK TRANSACTION
sector. SME has emerged as the “Engine of Growth” in the
Inter bank transaction facility is available in all SIBL economy of Bangladesh. It contributed manifold including
branches using BEFTN (Bangldesh Electronic Fund industrial growth, resource generation, poverty alleviation,
Transfer Network), BACH (Bangladesh Automated Checque employment generation and value addition. SME & the
Clearing) and RTGS (Real Time Gross Settlement) systems. Nation are now growing together.

SME is considered as one of the focus areas of operation
in SIBL. SME’s clients are being served in all of SIBL’s
branches situated both in rural and urban areas. Total
investment portfolio of the bank has been segregated
into 3 major aspects e.g. Corporate, SME & Retail. Such
segregation has been made in line with the definition and
guidelines of Bangladesh Bank.
SME operation of the Bank is in progress in a structured

manner. SME & Agricultural Finance Division has been
functioning in three separate Units e.g. Approval Unit,
Policy & MIS Unit and Monitoring & Recovery Unit. In line
with Bangladesh Bank’s guidelines, Women Entrepreneur The present SME investment outstanding is Tk.61,920.98
Development Unit (WEDU) has also been functioning to million (21%) in comparison with total investment
deal with the affairs of women entrepreneurs. These Units outstanding of the Bank which is BDT.300,617.94 million.
have been performing with specific Terms of References The composition of Investment portfolio of the Bank is
(TORs). Administration function (including Disbursement, shown in Figure 2 below:
Documentation, Compliance etc) is performed under
separate Investment Administration Division (IAD) at Head
Office of the Bank.
In line with the Prudential Guidelines on SME Financing

of Bangladesh Bank, SIBL has designed an array of SME
products for both small and medium segments. SIBL
offers both revolving and term investment facilities to the
SME clients. Small entrepreneurs, agricultural clients and
women entrepreneurs are properly addressed by SIBL with
the diversified products designed for this purpose.
SIBL has been achieving a continuous and upward growth

in its SME portfolio. As of December 2020, SME portfolio
holds 21% share of the total investment portfolio of the SIBL has been able to create job opportunities among
Bank amounting to Tk.61,920.98 million whereas the the significant Micro and SME borrowers. Many of them
outstanding balance in the year 2009 was only Tk.515.40 have been able to establish themselves as successful
million. Such tremendous growth has been possible entrepreneurs. Graduate of Micro-Enterprise program
due to proper and timely guidance of prudent members and successful SME graduates have the opportunity to
of the Board of Directors of SIBL and initiatives of the get investment facilities from formal sector as Corporate
Management along with team effort. clients. The Bank will keep continuing its efforts of
diversification of SME portfolio focusing on clients’ need
SME portfolio of the Bank has been increasing significantly,
while giving emphasize on green initiatives and sustainable
which is shown in the following table and graph.
development within a framework of Bangladesh Bank’s
guidelines.
SME Outstanding
Particulars
(Fig. in millions) AGRI INVESTMENT
31/12/2014 21399.80
SIBL has been continuously financing in different
31/12/2015 29198.70 agricultural businesses & projects in addition to provide
31/12/2016 40507.30 financing to the farmers through its entire branch network
31/12/2017 56884.30 spread over the country. Earlier, the Bank has received
‘Letter of Appreciation’ from Bangladesh Bank for achieving
31/12/2018 55648.40
agricultural Investment disbursement target of FY 2011-12
31/12/2019 63698.70 & FY 2014-15. In the FY 2019-2020, SIBL has disbursed
31/12/2020 61920.98 Tk.2,457.25 million Agri investments outstanding of which
is Tk.2,073.66 million. In 2020-2021, we have a target
The trend in SME investment outstanding of the Bank since to disburse Tk.4,960.00 million Agri investments set by
December, 2009 is shown in Figure 1 below: Bangladesh Bank.

The trend in agricultural investment disbursement of the The major objectives of the program are:
Bank since FY 2013-14 is shown in Figure 3 below:
1. Financial inclusion through financing facilities to poor
and marginal households.
2. To extend financing facilities for mostly in Agricultural
investment
3. To promote the upgrade Microfinance graduates to
Micro-enterprise and SME segments.
4. To encourage poor population to save for accumulation
of capital to invest in productive activities leading to
self-sufficiency.
5. To improve socio-economic situation of poor and
marginal people.
Features of Investments disbursement:
1. Investment disburse to one client from one family .

SIBL as a part of its social commitment will keep on 2. Investment ceiling from Tk. 20,000/- (twenty
patronizing the SME & Agri. clients to fulfill their diversified thousand) to Tk. 5,00,000/- ( five lac)
needs. 3. Equal Bi-weekly instalments
4. Duration 12 /18/24/36 months
Non-Formal Sector
5. Collateral free investment for the poor and marginal
Background: people
6. Most of the investments disburse in agricultural,
Social Islami Bank Limited (SIBL) started its journey small trade and handicraft sectors
on 22nd November in 1995 with a very commitment
which manifested in the Memorandum and Articles of Program arrangement:
Association to work in Non-Formal and Voluntary Sectors
Social Officers are the key manpower of the program.
in addition to Commercial Banking. The three sectors of
They perform most of the activities of the program as
SIBL are: 1. Formal Sector, 2. Non-Formal Sector and 3.
such; Client selection (through survey method), project
Voluntary Sector
/ business assessment (by physical visit), investment
The theme is first in the Banking arena of Bangladesh, proposal prepare, deposit collection, instalments recovery
brings a new dynamism in welfare banking targeting other related actions. They perform their activities under the
poverty alleviation of the poor and marginal people of the supervision of Branch incumbents. Regional coordinators
society with a motto of “Working Together for a Caring of Microfinance program are also monitor and supervise
Society”. To intensify the objectives of the Bank, SIBL program activities at field level physically. To implement
has restructured its Islamic Microfinance operations in the program effectively, a separate Unit has been set up at
the name “Family Empowerment Islamic Micro-finance the Head Office under Non-Formal and Voluntary Banking
Program (FEIMP)” in the year of 2015. With the Board Division of SIBL.
of Directors approval, we have initially started Family
Empowerment Islamic Microfinance Program (FEIMP) in 4
designated Branches and gradually which is successfully
expanded to 70 branches over the country.
Objectives of the program:
“Family Empowerment Islamic Micro-finance Program

(FEIMP)” is a group-based financing scheme for the poor
and marginal segments of the society who are not able to
provide collateral security. The goal of FEIMP is to empower
‘Family’ as a whole, not merely man or woman, individually.

Operations of the program:
Presently, we are operating Islamic Microfinance Program at 70 branches of the Bank through 108 Social Officers. As on
31st December, 2020, client’s deposit stood at Tk. 34.46 crore from 33,175 members. We have disbursed a sum of Tk.
195.42 crore among 35,578 clients with a total outstanding of Tk. 54.02 crore among 10,293 borrowers having Risk Fund
Tk. 4.35 crore against the investment portfolio.
The portfolio summary of Family Empowerment Islamic Micro-finance Program (FEIMP) as on 31st December 2020 is
presented in the following table:
Position as on 31 Position as on 31
Sl. Particulars Rate of growth
December, 2019 December, 2020
01 No. of branches having Microfinance Program 68 70 2.94%
02 No. of Social Officers 109 108 -0.92%
03 No. of Family Clusters 1835 1941 5.78%
04 No. of Members enrolled 29648 33175 11.90%
05 No. of Savings A/Cs 56841 70641 24.28%
06 Amount of deposited savings 264107402 344676544 30.51%
07 Amount of Risk Fund balance 28477950 43527497 52.85%
08 No. of disbursement (cumulative) 28945 35578 22.92%
09 Disbursed amount(cumulative) 1451628000 1954271000 34.63%
10 No. of borrowers 9978 10293 3.16%
11 Investment outstanding 395304362 540174873 36.65%
Client’s savings, number of borrowers, Investment outstanding and sector wise disbursement are presented below in
Graph - 1, 2, 3 & 4 respectively:

Recent development and Future Plans: Specific Cash Waqf, the profit of those A/Cs will be sent to
the beneficiary(s) as specified by the Waqif. The amount
SIBL will continue its efforts towards family empowerment deposited in the Cash Waqf A/Cs will be invested as per
by adopting innovative products and services for its Bank’s own decision in conformity with the Shariah and
micro-finance clients, focusing on increase client’s need the Cash Waqf amount will earn profit at the highest rate
and identifying unbanked areas over the country. Due to offered by the Bank from time to time.
sufficient scope for extending finance in different sectors,
considering client’s demand and recommendation from The waqf amount will remain intact and only the profit
branches, the Management of the Bank has increased amount will be spent for the purpose(s) specified by the
investment ceiling of Family Empowerment Islamic Waqif. Unspent profit amount will automatically be added
Microfinance program from Tk. 2,00,000/- to Tk. 5,00,000/- to waqf amount and earn profit to be grown over the time.
, Management has also approved to execute the program No cheque book will be issued in this account.
by the regular officers of branches at field level. The Board
of Directors (BOD) of SIBL has approved expansion of Waqif may also instruct the Bank to spend the entire profit
microfinance program through it’s sub-branches and Agent for the purpose of Cash Waqf.
Banking outlets over the country.
Waqif has the opportunity to create cash waqf at a time.
Cash Waqf Program Otherwise he/she may declare the amount he/she intends
to build up and may start with a minimum deposit of
In the Voluntary Sector, SIBL has introduced Cash Waqf Tk. 1,000/= (one thousand) only (or equivalent foreign
Program, a new product for the first time in the history of currency). The subsequent deposits shall also be made in
Banking. hundred or in multiple of hundred Taka. However, General
Cash Waqf A/Cs (where name of beneficiary whether
This scheme has been well received by the public in general Individual(s) or Institution(s) are not mentioned) may be
for its unique features. SIBL as a pioneer of this innovative opened by depositing a minimum sum of Tk. 1,000/= (one
financial product has received both Local & International thousand) only. Specific Cash Waqf A/Cs (where name
accreditation. As a result of successful replication, many of beneficiary whether Individual(s) or Institution(s) are
people are being benefited by the beauty of Cash Waqf mentioned by the Waqif) by depositing a minimum sum of
Program. Tk. 1,00,000/= (One Lac)only & above.
By opening a Cash Waqf Deposit A/C some one can get an Waqif shall also have the right to give standing instruction
opportunity to do welfare to the mankind through Sadake- to the bank for regular realization of cash waqf at a rate
Jariah. SIBL urges to all religious & affluent persons of the specified by him/her from any other A/C maintained with
society to come forward to mobilize Cash Waqf Deposit so SIBL.
that the profit may be utilized for the well being of mankind.
Cash waqf shall be accepted in specified endowment
Modus Operandi of Cash Waqfs program are given below- Receipt Voucher and a Certificate for the entire amount
shall be issued as and when the declared amount is built.
Cash waqfs shall be accepted as endowment in conformity
with the Shariah. Bank will Accounts of Cash Waqfs are maintained in a separate
ledger and necessary charges as per rules may be
manage the waqf on behalf of the waqif. deducted therefrom.
Waqfs are done in perpetuity and the account shall be In case of any change of address of the Waqif or beneficiary,
opened in the title given by the waqif. must be informed by the Waqif to the Bank immediately.
Purposes of Cash Waqfs program can be break under Bank however reserves the right to regret to open any Cash
some major fields like – Waqf Account.
1. Family Rehabilitation The rules of Cash Waqf Account are subject to amendment
2. Education & Culture in conformity with the Shariah at any time by the Bank.
3. Health & Sanitation
4. Social Utility
5. Others
Waqif may choose distribution of the profit to any specific

individual(s)/institution(s). Those A/Cs will be treated as

Al-Wasiyah Bil Cash Waqf Account: Rehabilitation (ii) Education & Culture (iii) Health & Sanitation
and (iv) Social Utility and others in conformity with Shariah. Cash
Very recent, Social Islami Bank Ltd. (SIBL) introduced Al- Waqf is broadly categorized as a) General Cash Waqf & b) Specific
Wasiyah Bil Cash Waqf Account for the first time in the Cash Waqf. Where the Waqif (Donor) doesn’t mention the name
country. This is a special type of Cash Waqf account. The of beneficiary (may be individual or organization) for receiving the
account has been designed for the wellbeing of the waqif profit of Cash Waqf fund, we call those General Cash Waqf. In
case of Specific Cash Waqf, the Waqif (Donor) specify the name
both in here & hereafter in conformity with the Shariah.
of specific beneficiary (may be individual or organization). Profit
Any solvent person aged 40 years or above can open “Al- of General Cash Waqf A/C are being sent to FAD, HO annually &
profit of Specific Cash Waqf A/C are being sent to the specific
Wasiyah Bil Cash Waqf Account’’ by depositing Tk.5.00 Lac
beneficiary as per instruction of the Waqif once annually.
(Taka: Five Lac) and above. The account holder will enjoy
the profit of the account either full or partial in his life time Social Islami Bank Ltd. is extending financial help to different
for his livelihood and after his death the earned profit will orphanages, schools, madrashas, social organizations &
be spent for the wellbeing (social, religious, educational) individuals who are suffering from fatal diseases like cancer,
of earthly and heavenly purposes according to the waqif’s kidney failure, heart diseases etc. from the fund which are being
wish (instruction). accumulated from the profit of Cash Waqf Fund, Compensation
Fund, Doubtful Income and Zakat Fund.
This is also a perpetual endowment like cash waqf. But for
Bangladesh Bank vide DOS Circular No. 01 dated 1 June, 2008
unavoidable or emergency reasons, the waqif can encash titled “Mainstreaming Corporate Social Responsibility (CSR) in
the whole amount or part of it. Waqif (account holder) can banks and financial institutions” gave a comprehensive guideline
make one-third of his asset as cash waqf but if he wants on CSR. We have been submitting quarterly CSR report to
to make more than one-third of his asset, he has to take Bangladesh Bank as per format provided by them. The format
written consent from his descendants. has following dimensions:
Corporate Social Responsibility (i) Financial Inclusion:
SIBL has been responding spontaneously to its social (In the form of Agriculture, SME, Women Entrepreneur, Renewable
commitment. As part of Corporate Social Responsibility (CSR), Energy Finance, Solar Irrigation etc.)
welfare activities of Social Islami Bank Limited (SIBL) are
being carried out mainly from (1) Profit of Cash Waqf Fund (2) (ii) Donation to the individuals, covering:
Compensation Fund (3) Doubtful Income (4) Zakat Fund and (5)
Education, Health, Disaster Management (Family Rehabilitation),
Others
Environment (Social Utility), Sports, Art & Culture, Others etc.
SIBL is a pioneer of Cash Waqf Program which has meanwhile
(iii) Donation to NGO’s:
achieved both local & international accreditation for its unique
welfare approach. Cash Waqf Program of the Bank paved the way for supporting such welfare activities
of doing welfare of mankind in various sectors such as (i) Family
CSR activities under-taken during 2020

SIBL has contributed a sum of total Tk. 271.83 million in the field of Health, Education, Disaster Management (Family
Rehabilitation), Sports, Art & Culture, Environment (Social Utility) & Others during year 2020, which are furnished hereunder:
Total
Sectors (Jan – Jun’ 20) (Jul – Dec’20)
Contribution
Health 5,55,000 11,36,370 16,91,370
Education 14,55,450 5,07,30,299 5,21,85,749 Sector-wise CSR Contribution (Year 2020)
(Taka)
Disaster Management
0 10,00,00,000 10,00,00,000 Environment(SocialUtility) - Tk. 11,74,27,175.00
CSR (Family Rehabilitation) DisasterManagement(Family Rehabilitation)- Tk. 10,00,00,000.00
Activities Education - Tk. 5,21,85,749.00
Sports 50,000 0 50,000 Health - Tk. 16,91,370.50
of SIBL Art & Culture- Tk. 0.00
Art & Culture 0 0 0 Sports- Tk. 50,000.00
Others - Tk. 4,75,845.00
Environment
11,09,95,175 64,32,000 11,74,27,175
(Social Utility)
Others 4,75,845 0 4,75,845
Total 11,35,31,470 15,82,98,669 27,18,30,139

CSR Activities of the Bank during 2020 at a glance :
Sl.
Events Particulars
No.
During the period the Board of Directors of the Bank approved Tk. 2.00 lac as donation
1 Donation to Mr. Azadul Islam to Mr.Azadul Islam for his Bicuspid Aortic Bulb and Aortic Stenosis disease to be paid
from Compensation Fund.
2 Donation to Younger Brother Of Mr. Saifullah to the treatment of liver Serosis for Younger Brother of Mr. Saifullah to be paid from
Compensation Fund.
During the period the Board of Directors of the Bank approved Tk.5.00 Crore as
3 Donation to Bangabandhu Memorial Trust donation to Bangabandhu Memorial Trust for celebrating “Mujib Year” to be paid from
C.S.R Fund.
Donation to Islamic Arabic University, Bosila,
4 for Furnishing and interior decoration of conference Hall of Islamic Arabic University
Mohammadpur.
to be paid from C.S.R Fund.
5 Donation to Satkania Lohagara Samity, Chattogram. to Satkania Lohagara Samity, Chattogram.for rehabilitation of the poor & distressed
people to be paid from Compensation Fund.
During the period the Board of Directors of the Bank approved Tk.1.00 Crore as
6 Donation to Rapid Action Battalion (RAB) donation to Rapid Action Battalion (RAB) for celebrating Mujib Year which is organized
by RAB paid from C.S.R. Fund .
During the period the Board of Directors of the Bank approvedTk.3.00 crore as donation
7 Donation to Prime Ministers Relief Fund. to Prime Ministers Relief Fund for house Construction for the poor & distressed people
paid from Compensation Fund .
Donation to Khalsi BazarMaddomik Biddaloy,
8 to Khalsi Bazar Maddomik Biddaloy for the poor & distressed student to be paid from
Pashapol,Chawgacha, Jashore.
Compensation Fund.
During the period the Board of Directors of the Bank approved Tk. 12.50 lac as
9 Donation to UCEP Bangladesh donation UCEP Bangladesh for Implementation of UCEP & SIBLSkills Traning Project
to be paid from Compensation Fund.
During the period the Board of Directors of the Bank approved Tk.1.00 lac as donation
10 Donation to Akhura Pourasova
to Akhura Pourasova to celebrate Mujib Year to be paid from CSR Fund.
Donation to Poor, helpless & Covid-19 affected During the period the Board of Directors of the Bank approved Tk.7.57 lac as donation
11
People. to Poor, & Covid-19 affected People paid from Compensation Fund.
Donation to Nurkazi Halimia Mahila Dakhil
12 to Nurkazi Halimia Mahila Dakhil Madrasha for construction of 2nd floor of madrasha
Madrasha
paid from Cash Waqf Fund.
During the period the Board of Directors of the Bank approved Tk. 5.00 Crore as
13 Donation to Suchinta Foundation donation to Suchinta Foundation for “Youth development and spread of education” to
be paid from C.S.R Fund.
During the period the Board of Directors of the Bank approved Tk 10.00 Crore for
14 Donation to Prime Ministers Relief Fund.
“Flood affected,helfless and poor people” to be paid from C.S.R.Fund.
During the period the Board of Directors of the Bank approved Tk.1.00 Lac as donation
15 Donation to Soyed Mahbub
to Soyed Mahbub for his treatment to be paid from C.S.R Fund.
During the period the Board of Directors of the Bank approved Tk. 2.00 Lac as donation
16 Donation to Mr. Anowa Hossain
to Mr. Anowar Hossain for his treatment to be paid from CSR Fund.
During the period the Board of Directors of the Bank approved Tk. 1.00 Lac as donation
17 Donation to Md.Mustak Ahmed.
to Md Mustak Ahmed for his treatment to be paid from CSR Expenditure.
On going CSR activities of the Bank
Sl.
Events Particulars
No.
Implementation of UCEP & SIBL Skills Training Project at UCEP Jatrabari Technical School,
UCEP Bangladesh
1 Dhaka & UCEP Ambagan Technical School, Chattogram. SIBL involving total Tk. 50.00 lac
(Supported by SIBL)
(Per quarter installment @Tk. 12.50 lac) for 01 (One) year.
SIBL is sponsoring financial support to the poor & meritorious student. In the year 2019, we
2 Stipend to poor & meritorious student have donated Tk. 47.01 lac favoring 55 (Fifty Five) students of different college & university
around the country.

A short list of our stakeholders: This Report also States
• Muktijuddha Jadughar The financial statements prepared as on 31.12.2020 by the
• Jatir Janak Bangabandu Sheikh Mujib Memorial Bank, presented fairly its state of affairs, the results of its
Assistance Trust operation, cash flows and changes in equity;
• Center for Rehabilitation of the Paralyzed (CRP) a. The financial statements prepared as on 31.12.2020
• Bangladesh Association of Banks (BAB) by the Bank, presented fairly its state of affairs, the
• Association of Bankers of Bangladesh (ABB) results of its operation, cash flows and changes in
• Federation of Bangladesh Chamber of Commerce & equity;
Industries (FBCCI)
b. There is no significant variance occurred between
• Dhaka Chamber of Commerce & Industries (DCCI) quarterly financial performances and Annual Financial
• Metropolitan Chamber of Commerce & Industries Performances of 2020;
(MCCI)
• Bangladesh Cricket Board (BCB c. Director’s remuneration including Independent
Director of Social Islami Bank Limited during the year
• Sight Savers International
2020;
• Kidney Foundation
• Bangladesh Cancer Foundation Hospital d. The Bank has been maintained proper books of
accounts;
• Jatiya Ando Kalyan Samity, Comilla
• Mosabbir Cancer Care Centre e. Appropriate accounting policies have been
• Dhaka Community Hospital consistently applied in preparation and presentation
• East West Medical College Hospital, Dhaka of the financial statements and that the accounting
estimates are based on reasonable and prudent
• Banglar Pathshala (School for the slum children)
judgment;
• URECA (School for under privileged children supported
by SIBL) f. International Accounting Standards (IAS) Bangladesh
• Bishyabidyalaya CAMPUS Accounting Standards (BAS)/lnternational Financial
Reporting Standards (IFRS)/Bangladesh Financial
• Chandpur Diabetic Samity
Reporting Standards (BFRS), as applicable in
• Kailakuri Healthcare Project, Modhupur, Tangail Bangladesh, have been followed in preparation of the
• Writer’s Foundation financial statements and any departure there-from
• Hamdard Laboratories (Waqf) Bangladesh has been adequately disclosed;
• Bangladesh University of Business and Technology
g. The system of internal control is sound in design and
(BUBT)
has been effectively implemented and monitored; and
• Dhaka Medical College Hospital (DMCH)
• Khulna Shishu Hospital, Khulna h. Management has reasonable ground to believe that
• Bangladesh University of Business and Technology there are no significant doubts upon the Bank’s ability
(BUBT) to continue as a going concern.
• Khulna Shishu Hospital, Khulna i. No Changes in Accounting policies and estimates have
• Prime Minister’s Education Assistance Trust Fund. been applied for preparation of financial statements.
• Prime Minister’s Relief & Welfare Fund
j. The appointment or reappointment of Directors
• Dhaka University, Dhaka including their resume and expertise has been
• UCEP Bangladesh described in separate sections of this Annual Report.
• Apex Foundation
k. As per provision of Companies Act and guidelines of
• Bidda Niketon High School, Narayangonj. other Regulatory Authorities, the Bank holds its Annual
• Prothom Alo General Meeting every year wherein shareholders can
• Upokul Foundation express their opinion and also approve the decisions
• Taragonj H N High School taken for the interest of the shareholders by the
controlling shareholders (Board of Directors). On the
• Sirajgonj Collectorate School & University
other hand, all sorts of information is been disclosed

in the Annual Report of the Bank published in every year which is also available in the website of the Bank. The minutes
of decision taken by the controlling shareholders in the Board Meeting are being communicated with the Bangladesh
Bank within seven days of holding the meeting. As such, there is no scope for the controlling shareholders to take
abusive actions against the interest of the minority shareholders.
l. The Board has not declared any interim dividend for its shareholders in the form of stock dividend and there is no
scope to declare such dividend in future as per guidelines of Regulatory bodies.
Operating Result & Profit

Total Operating Income of the Bank as on 31st December 2020 stood at Tk. 10,366.08 million against Tk. 12,282.58 million
of the preceding year. The Bank made an operating profit of Tk. 4,343.21.12 million in 2020 against Tk. 6,342.12 million of
2019.
A summary of operating result of the Bank is shown below
(Taka in Million)
Particulars 2020 2019 Growth Rate
Income on Investment 27,036.27 27,797.43 -2.74%
Profit paid to the Depositors 19,484.79 18,428.55 5.73%
Net Investment Income 7,551.48 9,368.88 -19.40%
Commission, Exchange, Shares & Securities and Other Income 2,814.60 2,913.70 -3.40%
Total Operating Income 10,366.08 12,282.58 -15.60%
Operating Expenses 6,022.87 5,940.46 1.39%
Profit before Provision 4,343.21 6,342.12 -31.52%
Provision against Investment & Others 1,302.56 3,208.08 -59.40%
Profit before Tax 3,040.65 3,134.04 -2.98%
Profitability Ratio
During the year under review- high deposit cost, increase in salary and allowances and depreciation on fixed assets and
other operating expenses affected the overall performance of the Bank. To bring the banking operation in streamline,
management paying extra attention in recovery of bad investments and all investments has brought under the close
monitoring system. For this purpose, management has undertaken some programs to protect the banks assets / investment
from any future deflect.

Net Investment Income Margin (NIIM) 2.43% 3.40%
Return on Assets (ROA) 0.42% 0.47%
Return on Equity (ROE) 8.78% 9.21%
Earning per Share (Restated) Tk. 1.65 Tk. 1.62

CORPORATE GOVERNANCE
Corporate Governance means a structure for transparent, fair, timely and decisive decision making by companies with due attention to
the needs and perspectives of shareholders as well as Stakeholders. SIBL has been considered as most essential aspect for efficient
management of a business house. It is considered to be a set of internal rules and procedures that ensure the accountability of the
Directors and Top Management towards the stakeholders. SIBL gives much emphasis on the corporate governance in promoting a sound
management. The objective of the Bank is to comply with all regulatory requirements, ensure equitable treatment of all stakeholders.
It confirms full and fair disclosure of financial and other material information and show respect for norms of business ethics and
social responsibility. The Board of Directors, Executive Committee, Audit Committee, Risk Management Committee, MANCOM and
other Committees of the management perform their respective tasks with accountability and transparency. SIBL has been complied
all corporate issues As per guidelines laid down in the BRPD Circular Number 12 dated December 23, 2002 of Bangladesh Bank. On the
other hand, Bangladesh Securities and Exchange Commission (BSEC) has revised the Corporate Governance Guideline and established
‘Corporate Governance Code’ vide its notification dated June 03, 2018. To comply the said Code SIBL has been maintained the Board
size consisting of 12 (twelve) members including 2 (two) Independent Directors. The qualification and experience of the Independent
Directors are more sophisticated who is able to ensure compliance with financial, regulatory and corporate laws and can make meaningful
contribution to business. Besides, to support and enhance the practice of corporate governance, the Audit Committee of the bank was
duly constituted by the Board of Directors with a view to evaluating the activities of the Bank.
Compliance Status of Corporate Governance Code issued by Bangladesh Securities & Exchange Commission (BSEC) vide its Notification
No: BSEC/CMRRCD/2006-158/207/Admin/80 dated 3rd June, 2018 under condition no: 1.5 (xxii) and (xxiii):
Compliance of another conditions of 1.5 are summarized in the preface of this report.
Compliance of condition 1.5 (xxii)
Board Meeting Held During the Year 2020 and Attended by Each Director:
Board
Sl. Meetings in Remarks
Name of Director
No. 2020 Remarks
Held Attended
Professor Md. Anwarul Azim Arif, Chairman (Representative of
01. 14 14
Hasan Abasan (Pvt.) Ltd.)
Mr. Belal Ahmed, Vice Chairman
02. 14 09
(Representative of Unitex Steel Mills Ltd.)
Mr. Md. Sayedur Rahman, Vice Chairman
03. 14 14
Mr. Md. Kamal Uddin, Director
04. 14 14
(Representative of Lion Securities and Investment Ltd.)
05. Mrs. Nargis Mannan, Director 14 14
Dr. Md. Jahangir Hossain, Director
06. 14 14
(Representative of Reliable Entrepreneurs Limited)
Mrs. Jebunnesa Akbar, Director
07. 14 14
(Representative of Unitex Cement Limited)
Mr. Ali Hasan Md. Mahmud Ribon, Director
08. 14 14
(Representative of Dynamic Ventures Ltd.)
Mr. Arshadul Alam, Director
09. 14 14
(Representative of Leader Business Enterprise Ltd.)
Appointed as
Mr. Mahmudul Alam Director by the Board
10. 14 06
(Representative of Global Trading Corporation Ltd.) of Directors on
12.07.2020
Professor A J M Shafiul Alam Bhuiyan, Ph.D
11. 14 14
Professor Mohammed Mizanur Rahman, Ph.D
12. 14 14
Compliance of condition 1.5 (xxiii): Pattern of shareholding
Statement in compliance with condition 1.5 (xxiii a): Parent / Subsidiary/Associated Companies and other related parties: NIL

Statement in compliance with Condition 1.5(xxiii b)
b (i):Shareholding Position of Directors of SIBL with their Spouse and Minor Children as on 31.12.2020
Sl Position & Total Shares Percentage of
Name of the Directors No. of Shares
No. Relationship with spouse Shares
1. Chairman 1,93,30,657 1,93,30,657 2.0608
Representative of Hasan Abasan (Pvt.) Limited
Mr. Belal Ahmed
2. Vice Chairman 1,93,24,305 1,93,24,305 2.0601
Representative of Unitex Steel Mills Ltd
Mr. Md. Sayedur Rahman
Vice Chairman 1,93,30,657
3. Representative of Prasad Paradise Resorts Ltd. 3,80,97,123 4.0615
Mr. Md. Sayedur Rahman (Own) 1,87,66,466
Mr. M. Kamal Uddin
Director 1,93,22,983
4. Representative of Lion Securities & Investment Ltd. 1,93,26,984 2.0604
Mr. M. Kamal Uddin (Own) 4,001
Mrs. Nargis Mannan Director 1,87,60,679
5. 2,03,90,174 2.1738
Prof. Dr. M. A. Mannan Husband 16,29,495
Director 1,93,23,394
6. Representative of Reliable Enterpreneurs Ltd. 1,95,71,114 2.0865
Dr. Md. Jahangir Hossain (Own) 2,47,720
Mrs. Jebunnesa Akbar
7. Director 1,93,24,305 1,93,24,305 2.0601
Representative of Global Trading Corporation Ltd.
Mr. Ali Hasan Md. Mahmud Ribon
8. Director 1,93,29,387 1,93,29,387 2.0607
Representative of Dynamic Ventures Ltd.
Mr. Arshadul Alam
Director 1,93,30,657 1,93,39,461 2.0618
9. Representative of Leader Business Enterprise Ltd.
Mr. Arshadul Alam (Own) 8,804
Mr. Mahmudul Alam
10. Director 1,92,29,938 1,92,29,938 2.0501
Representative of Global Trading Corporation Ltd.
1.5 (xxiii b) (ii) Shares held by the Chief Executive Officer, Company Secretary, Chief Financial Officer, Head of Internal Audit
and other top Executives of the Bank and their spouse and minor children( Name wise Details)
Sl.
Name Nos. of Share(s) held
No.
Mr. Quazi Osman Ali
01. NIL
Managing Director and CEO
Mr. Abdul Hannan Khan
02. NIL
Company Secretary
Mr. Walid Mahmud Sobhani, FCMA
03. NIL
Chief Financial Officer
Mr. Md. Giash Uddin Bhuiyan
04. NIL
EVP & Head of Internal Audit
1.5 (xxiii c) Shares held by top five salaried Executives of the Bank:
Sl.
Name Nos. of Share(s) held
No.
Mr S T M Abu Naser Chowdhury
01. NIL
Deputy Managing Director
Mr. Md. Sirajul Hoque
02. NIL
Mr. Md. Shamsul Hoque
03. NIL
Mr. Mohammad Forkanullah
04. NIL
Mr. Kazi Obaidul Al-Faruk
05. NIL
Senior Executive Vice President
1.5 (xxiii d) Shareholders holding ten percent or more voting interest in the Company: NIL

DECLARATION BY THE CHIEF EXECUTIVE OFFICER &
CHIEF FINANCIAL OFFICER TO THE BOARD
April 29, 2021
The Board of Directors
Social Islami Bank Limited
City Center, 90/1 Motijheel C/A
Dhaka-1000
Sub: Certification by Managing Director & CEO and Chief Financial Officer (CFO) regarding Financial Statements
for the year ended on 31st December, 2020
Pursuant to Condition # 1(5)(xxvi) imposed vide the Commission’s Notification No. BSEC/CMRRCD/2006-158/207/ Admin/
80 dated 03 June, 2018 under section 2CC of the Securities and Exchange Ordinance, 1969, we do hereby declare that:
1. The Financial Statements of Social Islami Bank Limited for the year ended on December 31, 2020 have been prepared
incompliance with International Accounting Standards (ISA) or International Financial Reporting Standards (IFRS), as
applicable in the Bangladesh and any departure there has been adequately disclosed;
2. The estimates and judgments related to the financial statements were made on a prudent and reasonable basis, in
order to the financial statements to reveal a true and fair view;
3. The form and substance of transactions and the Company’s state of affairs have been reasonably and fairly presented
in its financial statements;
4. To ensure above, the Company has taken proper and adequate care in installing a system of internal control and
maintenance of accounting records;
5. Our internal auditors have conducted periodic audits to provide reasonable assurance that the established policies
and procedures of the company were consistently followed; and
6. The management’s use of the going concerns basis of accounting in preparing the financial statements is appropriate
and there exists no materials uncertainty related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern.
In this regards, we also certify that:
i. We have reviewed the financial statements for the year ended on 31st December, 2020 and and that to the best of our
knowledge and belief:
a. These statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;
b. These statements collectively present a true and fair view of the company’s affairs and are in compliance with
existing accounting standards and applicable laws.
ii. There are, to the best of knowledge and belief, no transactions entered into by the company during the year which are
fraudulent, illegal or violation of the code of conduct for the company’s Board of Directors or its members
(Quazi Osman Ali) (Walid Mahmud Sobhani, FCMA)

Managing Director & CEO Chief Financial Officer

INFORMATION RELATED TO BOARD & ITS
DIRECTORS
BOARD OF DIRECTORS: The bank provides only the following facilities/benefits to

the members of the Board:
Several initiatives have been taken by the Board of Directors
of the Bank for institutionalizing Corporate Governance in • Chairman of the Board of Directors is provided with a
the Bank for safeguarding the interests of the Stakeholders. car, telephone, office and private secretary.
As a listed Banking Company Social Islami Bank Limited
have been complied all types of Orders/ Directives/ • Directors are entitled and paid Meeting Attendance
Circulars/ Notifications/ Rules issued by the Bangladesh fees including actual travelling, fooding and lodging
Bank and Bangladesh Securities and Exchange Commission expenses for attending the Board of Directors Meeting,
(BSEC) from time to time. Social Islami bank Limited does Executive Committee Meeting, Audit Committee
not have its own policy on appointment of Directors Meeting, Risk Management Committee Meeting and
rather it follows the provision of Companies Act, 1994 and Shariah Supervisory Committee meeting.
Bank Companies Act, 1991(Amendment upto- 2018). All As per BRPD Circular No. 11 dated 4th October 2015, the
Directors except Independent Directors of the Board are highest slab of Honorarium for the Board member to attend
non-executive directors holding more than 2% Shares of the Board meeting of any bank operating in Bangladesh
the Paid-up Capital of the Bank. At the time of appointment has been limited to Taka 8,000/- per attendance and
of new directors, the existing Board of Directors frequently accordingly Social Islami Bank Limited has been paying
assess the size and structure of the Board, evaluate the Honorarium to the Hon’ble Director for attending Board
knowledge, skills, experience and perceptions that may Meeting including attending to the Executive Committee
be necessary to allow the Board to perform its functions. Meeting, Audit Committee Meeting and Risk Management
The directors are appointed by the shareholders in the Committee Meeting @ Taka 8,000/- per attendance.
Annual General Meeting. Casual vacancy, if any, is filled
up by the Board in accordance with the provisions of the BOARD MEETINGS & MINUTES
Companies Act and Articles of Association of the Company.
Total number of Directors of Social Islami Bank Limited is During the year-2020, 14 Board of Directors Meeting were
12 (twelve) including 2 (two) Independent Directors which held through digital platform facing the World wide Pandemic
is within the compliance limit of the provision of Bank Covid-19, minimum one or more Board of Directors meeting
Companies Act, 1991 (amended upto 2018) and all the may be held in every month where to discuss and review
Directors have their sufficient shareholdings i.e. minimum business strategy, financial performance, compliance and
2% of the total paid-up capital of the Bank as per Bangladesh governance, risk management issues etc. as well as reports
Securities & Exchange Commission’s (BSEC’s) Notification on matters deliberated by the respective committees.
Dated 22.11.2011 published in the Bangladesh Gazette Meetings of the Board are scheduled in advance for
on December 14, 2011. The Board members of SIBL are the Directors to plan their schedules. In addition, Special
highly competent and professional in the arena of Banking, Board meetings are held when necessary, to deliberate on
Business and Industry. The board approves and reviews major transactions and adhoc matters that require the
different policies and business plans in line with six core Board’s urgent attention and decisions. Meeting papers
risk management guidelines with the ultimate objective to on the proposals and reports are delivered to the Directors
achieve the goals whereas the administrative and execution prior to the meetings, giving them sufficient time to
powers lie with the management team of the bank which is evaluate the proposals and if necessary, request additional
headed by the Managing Director & CEO. Managing Director information. This enables the Board to function and
& CEO of the Bank is paid salaries and allowances as per discharge their responsibilities effectively. The minimum
approval of the Board of Directors of the Bank subject to information required for the Board to make an informed
approval of Bangladesh Bank. and effective decision includes background, objective, key
issues, rationale, financial and non-financial impact of the
proposal. Directors who are unable to attend a meeting due
to unavoidable circumstances are encouraged to provide
feedback to the Chairman on matters to be deliberated for
their views to be given due consideration at the meetings.
Proceedings and resolutions are taken by the board are
recorded as minutes of the meeting signed by the Chairman of the meeting and send to Bangladesh Bank. The decisions
taken by the board are disseminated by the Company Secretary to whom such decision relates. Upon request of any
member of the Board of Directors, copy of minutes of AGM is provided by the Company Secretary upon receipts of
fees as per Articles of Association of the Bank. As per Companies Act 1994, every company is required to hold minimum
4 (four) Board of Directors meeting in a year. Since inception total 459 numbers of Board meetings were held all such
meeting related papers, documents, memo, attendance & honorarium registers, minutes etc. are being maintained in good
condition by the Board Secretariat of the Bank.
RETIREMENT OF DIRECTORS
The Article 83 of the Articles of Association of the Bank provides a provision of Retirement by Rotation of the Directors in
accordance with the provision of Section 91(2) of the Companies Act, 1994. In accordance with the said provision of the
Companies Act, 1994 and Articles of Association of the Bank the following Director shall retire from the office in the next
26th Annual General meeting as they have been holding the office for the longest period.
1. Mr. Md. Sayedur Rahman

2. Mr. Md. Kamal Uddin

(Representative of Lion Securities and Investment Ltd.)
3. Mrs. Nargis Mannan
4. Mr. Ali Hasan Md. Mahmud Ribon

(Representative of Dynamic Ventures Limited
As per compliance of Corporate Governance Code-2018 and Notification No. BSEC/CMMCD/2009-193/09/Admin/117

dated 22th March, 2021 of BSEC, the Engagement of the above mentioned Directors with other companies as Directors
other than Social Islami Bank Limited are given bellow:
First Last Re-

Engagement other than Social Islami
Sl No. Name of the Retiring Directors Employment Appointment appointment
Bank Limited including Directorship
date date
01. Mr. Md. Sayedur Rahman Business 09-09-1999 27.06.2018 Managing Director:
Vice Chairman • M/S Lodestar Fashions Ltd.
(Representative of Prasad Paradise Resorts Ltd.) • M/S Mid Asia Fashions Ltd.
02. Mr. Md. Kamal Uddin Business 25.10.2014 27.06.2018 Managing Director:
Director • Chittagong Builders & Machinery Ltd.
(Representative of Lion Securities and Investment Ltd.) • Merchant Securities Limited.
• Sifang Securities Limited.
Director:
• Human Resources Development
Com. Ltd.
• Central Hospital (Pvt.) Ltd.
• ASM Chemical Industries Ltd.
• Universal Health Service & Research
Ltd.
Chairman:
• Mercantile Insurance Company Ltd.
Proprietor:
• CBM Consortium
03. Mrs. Nargis Mannan Business 05.07.1995 02.07.2019
NIL
Director
04. Mr. Ali Hasan Md. Mahmud Ribon Business 13.11.2017 02.07.2019 Chairman:
Director • M/s Mahmud Ribon
(Representative of Dynamic Ventures Limited)
As per provision of Article 84 of the Articles of Association of the Bank the retiring (four) Directors as mentioned above are
eligible for re-election in the same meeting they retire.

It is also mentioned here that in the last Annual General CODE OF CONDUCT FOR THE BOARD OF DIRECTORS
Meeting (25th AGM), the following 4 (four) Directors were
retired by rotation as per section 91(2) of the company Act Social Islami Bank Limited has adopted a Code of Conducts
1994. They were also re-elected as per provision of the for the all members of the Board of Directors of the Bank
Company Act 1994 and Articles of the Bank who shall individually be liable to sign and follow this Code
of Conduct including any new members who may assume
1. Mr. Arshadul Alam (Representative of Leader Business office as from this date. The Code of conduct includes all
Enterprise Ltd.) instructions /circulars/ guidelines issued by Bangladesh
2. Dr. Md. Jahangir Hossain, Director; (Representative of Bank related to the Directors and their interested group/
Reliable Entrepreneurs Ltd.) organization. However, followings are the general code of
conducts approved and adopted by the Board of Directors.
3. Mrs. Jebunnesa Akbar (Representative of Unitex
Cement Ltd.) Fiduciary Duties:
4. Mr. Mahmudul Alam, Director; (Representative of
The duties imposed on Board Members are fiduciary
Global Trading Corporation Ltd.)
duties, similar to those that the law imposes on those in
DIRECTOR’S RESPONSIBILITY STATEMENTS similar positions of trust, agents and trustees;
The major responsibilities of the Directors of the board are- Powers vs Duties:
• Developing and implementing corporate strategies. The duties apply to each Board Member separately, while
the powers apply to the Board jointly;
• Exercising of business judgment in good faith using
general prudence for the best interest of the bank in Contribution in Meetings/Debates:
line with bank’s Articles of Association and complying
with the prevailing applicable laws and regulations. The Board Members are expected to contribute to the
debates in the Board without any personal biases or other
• To set the direction, vision and policies of the bank prejudices with the conviction and belief that the outcome
and to determine objective and strategies to ensure of every debate would be towards the advancement of the
the effective discharge of the bank’s functions. company.
• Most efficient use of the bank’s resources.
Unfettered discretion:
• Monitoring and reviewing corporate governance
framework of BSEC. Board Members cannot without the consent of the
• Monitoring and reviewing risk management process company, fetter their discretion in relation to the exercise
of the bank. of their powers, and cannot bind themselves to vote in a
particular way at future Board Meeting.
• Fixation of Business targets, reviewing business
results and monitoring budgetary control. Use of corporate property, opportunity or information
• To evaluate the key performance indicators of the Top
A Board Member must not, without the consent of
Executives of the bank.
the company, use company’s assets, opportunities, or
• To establish and maintain effective communication information for his/her own profit.
system with the different regulatory bodies.
Confidentiality:
• Setting up standards and monitoring compliances with
the bank’s social responsibility policies and practices. Each Board Member must use utmost care and discretion
• Recommendation of appointment and reappointment in the handling of confidential information and other
of statutory auditors of the bank along with their fees. information not normally available to the public, generally
coming to them by reason of their directorship, office or
• To prepare and submit Directors’ Report before the
employment. Such information shall, subject to certain
shareholders’ in Annual General Meeting in accordance
limited circumstances, not be disclosed to third parties
with the BSEC notification and Listing Regulations of
and shall not be used for personal benefit or for the benefit
DSE & CSE.
of family, friends, or associates.
• Recommending shareholders to approve Financial
Statements, dividend and appointment of external
auditors.

Transactions with the company: When dealing with public officials whose responsibilities
include the business of the company, acts of hospitality
A Board Member shall not enter into a transaction where should be of such a scale and nature so as to avoid
there is a conflict between his interest and duty without compromising the integrity or reputation of either the public
the knowledge of the Board; and it is a statutory duty official or the company. Such acts of hospitality should be
of the director(s) to declare interests in relation to any undertaken in the expectation that they could well become
transactions, and to make proper disclosure thereof. a matter of general knowledge and public record.
Competing with the company: AFFIRMATION & COMPLIANCE OF THE CODE
A Board Member must not compete directly with the • All Board Members shall read this Code at least
company without arising a conflict or interest. annually, and shall certify in writing that they have
A Board Member should not act as a director of any done so and that they understand the Code;
competing companies, as his/her duties to each company • Annual compliance of the code by all Board Members
would conflict with each other. shall be recorded in a meeting of the Board of Directors;
Conflict of duty and interest • This document is applicable with immediate effect;
As fiduciaries, the Board Members must not put themselves • The Board shall have the authority to make amendment
in a position where their interests and duties conflict with to this document at any time; and
the duties that owe to the company;
• The Company Secretary of the bank has submitted
Each and every Board Member has an obligation of loyalty a declaration before the Board of Directors and
to the company and should subordinate his/her personal affirmed that all the member of the Board of Directors
interest when they conflict with or threaten to conflict with have complied with the code of conducts as were
the best interests of the company; determined by the Board.
Each and every Board Member shall declare all actual or • The following Terms of Reference (TOR) (defining the
potential material conflicts that may arise between their roles, responsibilities and duties) for the Chairman
duty to (i) the company and (ii) their personal obligations, may be framed in line with the provisions of the
other fiduciary duties or financial interests (direct or Articles of Association of the Bank, BRPD Circular
indirect) and these conflicts shall be reported to the Chair; No.11 dated 27.10.2013 and other usual practices:
A Board Member should not engage directly or indirectly,
TERMS OF REFERENCE (TOR) OF THE CHAIRMAN
as a director, officer, employee, consultant, partner, agent
or major shareholder in any business or undertaking that The following Terms of Reference (TOR) (defining the roles,
competes with, does business with or seeks to do business responsibilities and duties) for the Chairman may be framed
with the company; in line with the provisions of the Articles of Association of
the Bank, BRPD Circular No.11 dated 27.10.2013 and other
With respect to restricted party transactions, full
usual practices:
disclosure of material transactions shall be recorded in the
board’s minutes and will be transacted in accordance with The Chairman as per the Articles of Association
legislated restrictions; and
• The Directors shall select a Chairman from amongst
To avoid conflicts of interest, the Board Members must do themselves;
more than merely act within the law. They must conduct
their affairs in such a manner that their performance will at • If at any meeting of the Board, the Chairman be not
all times bear public security. The appearance of conflict of present at the time appointed for holding the same,
interest as well as the conflict itself must be avoided. such meeting shall be presided over by Vice-Chairman,
if any, and if none be present the Directors present
Accepting Gifts shall elect Chairman to preside over that meeting;
No Board Member shall accept any gift, hospitality or • All meetings of the Board and Shareholders shall be
favour offered or tendered by virtue of the position with presided over by the Chairman;
the company;

• The Chairman may call a meeting of the Board of A. WHILE WORKING WITH THE BOARD, THE
Directors of the Company; CHAIRMAN SHALL
• The Chairman may call a meeting of the Board of ii. ensure that the Board has full governance of the
Directors on shorter notice than seven clear days as Company’s business and affairs and that the Board is
he may deem fit; alert to its obligations to the Company, shareholders,
Management and other stakeholders under the law;
• In case of equality of votes in a Meeting of the Board
of Directors, the Chairman shall have a second or iii. set the agenda for discussion at Board Meetings and
casting vote; General Meetings and ensure that adequate time is
available for discussion of agenda items;
• The minutes of a Meeting of the Board of Directors or iv. set the frequency of the Board meetings and review
of the Shareholders shall be signed by the Chairman such frequency from time to time as considered
of the meeting to which it relate or by the Chairman of appropriate or as requested by the Board;
the succeeding meeting.
v. chair all Board meetings and manage the business of
ROLES & RESPONSIBILITIES OF THE CHAIRMAN the Board ensuring that the Board adopts a prompt
and constructive approach to make decisions;
As per BRPD Circular No.11 dated 27.10.2013
vi. provide strong leadership of the Board and assist it
1. As the Chairman of the Board of Directors (or in reviewing and monitoring the aims, strategy, policy
Chairman of any Committee formed by the Board of and directions of the Company;
Directors) does not personally possess the jurisdiction vii. communicate with the Board to keep it up-to-date on
to apply policy making or executive authority, he shall all major developments, including avoiding surprises
not participate in or interfere into the administration or through timely discussion of potential developments
operational and routine affairs of the bank. and ensuring the Board has sufficient knowledge to
permit it to comfortably and properly make major
2. The Chairman may conduct on-site inspection of any
decisions when such decisions are required;
branch or financing activities under the purview of
the oversight responsibilities of the Board. He may viii. recommend the committees of the Board and their
call for any information relating to bank’s operation composition, review the need for and the performance
or ask forinvestigation into any such affairs; he may and suitability of those committees, and make such
submit such information or investigation report to the adjustments as are deemed necessary from time to
meeting of the Board or the Executive Committee and time;
if deemed necessary, with the approval of the Board, ix. ensure that Board and committee meetings are
he shall take necessary action thereon in accordance conducted in an efficient, effective and focused
with the set rules through the CEO. However, any manner;
complaint against the CEO shall have to be apprised
x. ensure that the corporate governance of the company
by the Bangladesh Bank through the Board along with
is maintained in line with appropriate practice policies
the statement of the CEO.
agreed by the Board;
3. Chairman of the Board of Directors may be provided xi. annually review Board Governance and performance
with a car, telephone, office and private secretary. of the Board (leading the process for the Board’s
annual performance evaluation and the evaluation
ROLES & RESPONSIBILITIES OF THE CHAIRMAN AS of its committees and individual directors and acting
PER USUAL PRACTICES on the results of such evaluation by recognizing the
strengths and weaknesses of the Board);
The duties of the Chairman, which is a non-executive role,
arise from his senior most position in the Company and his xii. be the contact person for the expression of individual
responsibility for presiding over the official business of the director concerns;
Company and the Board. xiii. foster a culture of openness and engagement by
facilitating the effective contribution of all directors,
in particular non-executive directors and ensuring
constructive relations between executive and non-
executive directors;

xiv. ensure that new directors participate in a full, x. provide advice to the MD/CEO on the allocation of
formal and tailored induction program and that the duties to individual directors and assignment of adhoc
development needs of the directors and the Board responsibilities or special tasks to directors or groups
as a whole are identified and are met to enhance the of directors;
effectiveness of the Board; and
C. RECOGNIZING THE MD/CEO AS THE PRIMARY
xv. be available to assist committee chairs in carrying out SPOKESPERSON, THE CHAIRMAN SHALL
their responsibilities and in addressing their concerns.
1. chair all meetings of shareholders;
B. WHILE WORKING WITH THE MANAGEMENT,
THE CHAIRMAN SHALL 2. undertake public service as agreed with the MD/
CEO in connection with the Company’s charitable,
iii. (act as the principal of the board and counsellor for the educational and cultural activities;
MD/CEO, including helping to define problems, review
strategy, maintain accountability, build relationships, 3. participate with MD/CEO, as appropriate, in corporate
and ensure the MD/CEO is aware of concerns of the relations, including relations with the shareholders,
Board, shareholders and other stakeholders; customers, government, other companies, the media
and stakeholders generally; and hold meetings with
iv. keep under review with the Board the general progress the non-executive directors.
and long-term development of the company and
ensuring that effective strategic planning for the • This document is applicable with immediate
company is undertaken by the MD/CEO and endorsed effect.
by the Board after discussion, consistent with
creating shareholder value and promoting the long • The Board shall have the authority to make
term success of the company for the benefit of its amendment to this document at any time.
members as a whole;
ROLE OF THE CHAIRMAN AND MANAGING
v. ensure the submission to the Board by the MD/CEO
DIRECTOR & CEO ARE INDEPENDENT
of objectives, policies and strategies for the company,
including the company business plan and the annual The Chairman of the Board is not the Managing Director
budget; & CEO of the Company. The role of Chairman and the
vi. monitor progress towards timely and effective Managing Director & CEO are independent and detached
achievement and implementation of the objectives, from each other.
policies and strategies set by the Board and ensure
that appropriate decisions are taken promptly by or on ROLE, RESPONSIBILITIES & POWER OF THE
behalf of the Board; MANAGING DIRECTOR & CEO
vii. lead the Board in Roles, responsibilities and powers conferred of the
a. formally appraising, monitoring and evaluating Managing Director & CEO of Social Islami Bank Limited
the performance of the MD/CEO and make has been conferred by the BRPD Circular No. 18 dated
appropriate recommendations to the 27.10.2013. Apart from that, Managing Director & CEO of
Remuneration Committee; SIBL shall discharge the following roles, responsibilities
and duties as per Articles of Association of the Social
b. ensuring accountability of the MD/CEO; Islmai Bank Limited and usual practices-
c. ensuring the implementation of the succession
and development plans by the MD/CEO; and The MD/CEO as per the Articles of The Association
d. as appropriate, review with the MD/CEO • The Managing Director & CEO of the company
his recommendations on performance and appointed by the Board and approved by Bangladesh
remuneration of senior executives; Bank;
viii. work with the MD/CEO and Company Secretary to
• The Managing Director & CEO of the Company shall
co-ordinate the agenda, information packages and
be accountable to the Board and shall discharge his
related events for Board meetings.
functions and duties subject to supervision of the
ix. ensure that there is appropriate delegation of authority Board of Directors; and
from the Board to Executive Management;
• The MD will be an Ex-officio Member of the Board

without having any voting power and he shall not need • To ensure that there is a fit between strategy and
to have any qualification share. culture, and the company’s processes and structure;
General Roles & Responsibilities • To ensure that appropriate internal audit and internal
control processes and procedures are in place (in
• The General Roles and Responsibilities of the liaison with Head of Internal Audit, External Auditors
Managing Director & CEO shall be- and Board Audit Committee);
• To act as the Chief Executive Officer reporting to the
• To develop and implement a risk management plan;
Board of Directors;
and
• To remain accountable to the Board for the overall
• To ensure that there is a succession plan in place.
performance of the company and for the day-to-
day operation and management of the company’s The Board has the authority to make amendment to the
business, under the authority delegated by the Board above rules, responsibilities and document at any time.
from time to time;
OTHER COMMITTEE OF THE BOARD
• To develop and present strategic and annual
business plans, rules, regulations and systems for Along with the board, SIBL has some other committees to
legal functioning of the organization to the Board for assist the board in taking proper decision to run the bank
approval; efficiently. The committees are mentioned below
• To implement the Board’s policies and strategies and 1. Executive Committee
deliver the strategic plan in the most effective and
efficient manner; 2. Audit Committee
• To report to the Board on progress against the 3. Risk Management Committee

strategic and annual business plans on a regular
basis. Typically, reporting against the annual plan will 4. Nomination and Remunaration Committee (NRC) is
be monthly, while reporting against the strategic plan yet to form as Bangladesh Bank has not issued any
will be less frequent, although it should be at least two guidelines regarding this.
or three times a year; Policy for the employees remuneration and fringe benefits
• To coordinate the overall management, administration, are proposed by a committee comprised with the top
corporate planning and business development; management of the bank. Then the proposal is reviewed
and finalized by the board.
• To ensure the compliances of Laws, Rules and
Regulations and for Good Corporate Governance; TERMS OF REFERENCE (TOR) FOR THE COMPANY
SECRETARY
• To supervise all technical, financial and welfare
aspects of the organization, negotiations with sources 1. Appointment, reporting relationships and
of credit/fund, and listing in the stock exchange(s); accountability
• To manage the day-to-day operations of the company • The Company Secretary is an employee of the
Manage, motivate, develop and lead members of the Company who;
Management Team;
• reports administratively to the Managing Director &
• To manage resources efficiently and effectively to CEO and operationally to the Chairman of the Board;
achieve the company’s
• is also accountable to the Board of Directors;
Objectives • acts in the capacity of Secretary to the Board and its
Committees;
• To lead the Local Management Team of the Company
and chair Management Team meetings; • is responsible for providing strategic and operational
support to the Board by providing resources and
• To take a leadership role in establishing the company’s information links among the Board, Management
culture and values; and the Shareholder, with particular emphasis on
facilitating the flow of information;

• is also responsible for maintaining effective working Corporate Governance Services
relationships with the Board Chairman, Committee The Company Secretary shall –
Chairs, individual Directors and Management; • Provide expertise and work with the Board Chairman
• must have a broad understanding of the organization to implement best practices in corporate governance
and its operations to effectively carry out his/her by the Board and its Committees;
responsibilities. • Provide advice and guidance to Directors and
management regarding policies, directives and
2. Duties and responsibilities processes regarding corporate governance and tax
issues related to the Board and Directors;
Regarding Management of Board and Committee Meetings
• Be responsible for promoting strong corporate
The Company Secretary shall – governance practices within the organization;
• Initiate the development of agenda for Board and • Draft and maintain all governance documentation
Committee Meetings in consultation with the Board including the Governance Manual in collaboration with
Chair, Committee Chairs and Management; the Board Chair;
• Work with the Board Chair to ensure continuous
• Facilitate in consultation with Chairman, Committee
improvement of the Board of Directors;
Chairs or MD/CEO, Notification of meetings,
preparation and distribution of agenda items etc. and • Keep up to date on evolving corporate governance
ensure that; practices and trends;
• Facilitate the practical arrangements for a Board • Promote the role and responsibility of the Company
meeting or Committee meeting, such as meeting Secretary both within the organization and externally,
room, transports, lunch/dinner/tea etc. as required; building networks to share ideas, discussing new
trends in corporate governance and best practice;
• Attend Board and Committee meetings, and provide • Refer issues for legal review and opinions as required
advice to the Chairman to support effective functioning and may be directed to obtain advice on behalf of the
of the Board or Committee and adherence to proper Board;
meeting procedure;
• Act as custodian for Company’s corporate and
• Prepare accurate, complete minutes of meetings; historical records, meeting minutes and related Board
• Where required, prepare and submit to the Directors information;
accurate and complete proposal for written • Maintain a record of consolidated Board motions.
resolutions; Board Evaluation & Succession Planning Processes
• Arrange for signatures of minutes and written
resolutions; The Company Secretary shall assist the Board and/or
Committees-
• In conjunction with management, clearly communicate • In evaluating and reporting on corporate governance
directives from the Board and Committees to the commitments and the mandates of the various
person responsible for carrying out the directives; Committees;
• Retain and safeguard the official Minute books and • In implementing and reporting on the annual processes
Corporate documents; to assess the performance of the Board, Committees,
Chairs and individual Directors;
• Verify and Authorize Director’s expenses for
performance of Board-related duties; • In implementing and reporting on the annual
performance evaluation of the CEO;
• Review all minutes for consistency, appropriateness
• Facilitating Board appointment and renewal
of recorded decisions and issues with broader
processes, and addressing Committee structures,
implications;
composition and mandates;
• Ensure that the record of minutes is at all times up to • In identifying and communicating any skill
date; requirements for making recommendations to fill
• Act as a Secretary for all Board and Committee Board vacancies;
meetings. • Identifying and communicating the professional
development needs of Directors.

Policy Framework • Ensure that the appropriate technical support is
available to the Board in relation to any online or
The Company Secretary is responsible for- paperless communication platforms;
• Overseeing the organization’s Policy Framework as • Support the MD/CEO in ensuring that all decisions
approved by the Board; made by the Board, or the Board Chair, are clearly
communicated to management in a timely manner
• Providing advice and guidance to the Board, the and that all consequential actions are taken by the
MD/CEO and management on compliance with that organization;
framework. • Additionally ensure the confidentiality of Board
Duties and Responsibilities: Board Budget materials, records and deliberations as appropriate, or
as directed by the Board Chair.
The Company Secretary shall manage the Board budget
and review and ensure the effective administration of Board Code of Conduct & Conflict of Interest
expenditures including compliance with entitlements. • The Company Secretary shall administer the Code
Transparency of Conduct of the Board Members and advise the
Board Chair in respect of any matters where conflict,
The Company Secretary supports the Board’s commitment potential or real, may occur between the Board and its
to transparency by- Members;
• If there is a conflict of interest, actual or potential, on any
• Ensuring continuous disclosure of the governance particular matter, between the Company Secretary’s
framework; administrative or managerial responsibilities within
• Ensuring all external reporting requirements are met the Company and his/her responsibilities as a
including in relation to the disclosure of Board meeting secretary to the Board, it is his responsibility to draw it
attendance, Board remuneration and expenses; to the attention of the Board.
• Ensuring that the appropriate controls are in place in Statutory & Legal Matters
relation to access to board information; The Company Secretary shall -
• Ensuring the preparation of governance related
materials for the Service Plan and Annual Service Plan • Keep under close review all legislative, regulatory and
Report in collaboration with the Board Chair. corporate governance developments that might affect
the Company’s operations, and ensure the Board is
COMMUNICATION fully briefed on these and that it has regard to them
when taking decisions;
The Company Secretary shall –
• Ensure proper and timely documentary filings and
• Be the liaison between the Board and the MD/CEO and fulfilment of disclosure requirements to statutory
Management and is the main contact for Directors; authorities under applicable legislation and policy;
• Promote a strong and effective working relationship
between the Board and management; • Ensure that the standards and disclosures required
by the different statutes are observed and, where
• At the direction of the Board Chair, provide Directors required, reflected in the annual report of the directors;
with timely information between Board Meetings;
• Ensure that all Directors have all the necessary • Make arrangements for and manage the process of
information to discharge their responsibilities; the General Meetings;
• Ensure that all Directors receive the same information • Maintain the Company’s books and records and
to support the cohesive working relationship of the ensure the security and application of the Company’s
Board; Common Seal;
• Develop templates and guidelines to support the • Perform such other duties which usually pertain to the
preparation of appropriate briefing material; Company Secretary or which may be from time to time
• Ensure that the appropriate tools and mechanisms be prescribed by the Board or be required by law.
are in place to manage Board information and
communication to ensure that Directors are able to
properly discharge their responsibilities;

Special Projects iv. Management relationships with the Company’s
bankers and investors, and leasing companies.
As directed and approved by the Board and its committees, Responsibility for capital planning and structure
the Company Secretary will undertake special projects and the raising of equity or debt to fund the
ensure that the Board have sufficient information on the Company’s operations, investment analysis/
resources required to complete any proposed special presentations, and tracking of the Company’s
projects. market valuation;
TERMS OF REFERENCE (TOR) FOR THE CHIEF v. The financial analysis function which addresses
FINANCIAL OFFICER (CFO) product contribution and pricing/margins, the
vetting of business cases and post reviews of
1. Appointment, Reporting Relationships and completed/implemented initiatives, business
Accountability analysis, operational efficiency and organizational
and system capacity modelling/utilization;
The CFO is a Senior Executive of the Company who
3. As a member of the senior management of the
• Reports to the Chief Executive Officer (CEO);
Company, the CFO shall
• Is also accountable to the Audit Committee;
i. Assist the CEO in
• Must have a broad understanding of the organization
a. Representing the Company in dealings with
and its operations to effectively carry out his/her
government and regulatory bodies;
responsibilities.
b. Maintaining relationships with outside agencies
2. Roles, Responsibilities and Duties of the CFO and strategic partners;
The CFO, on behalf of the Board of Directors, is responsible c. Maintaining a policy of on-going communication
for with investors and representatives of the
investment community.
• Following applicable Accounting Standards and
ii. Meet regularly and as required with the CEO to review
Financial Reporting Standards like IAS, BAS, IFRS
material issues and to take reasonable steps to ensure
and BFRS, and adequate disclosure for any departure
that the CEO is provided in a timely manner with all the
there-from, if any;
information he/she requires to fulfill his/her statutory
• Compliance with application of appropriate accounting and other obligations;
policies, and ensuring that accounting estimates are iii. Carry out analysis of assets and liability and submit
reasonable and prudent; recommendations to the management on a quarterly
• Providing close cooperation in establishing effective basis;
internal financial control environment. iv. Recommend to the Management on how to match
assets and liabilities according to short term and long
• As a Senior Executive, the CFO is responsible for term plan.
leadership and management of the Company’s finance
and accounting functions and is responsible for • The CFO shall have the following Responsibilities
towards the Board of Directors
i. The Company’s business planning, budgeting and
forecasting processes, including coordination i. To attend the board meetings and be part of
and integration of strategic and business plans the discussion having financial implication
for business segments, departmental cost on relevant issues
centers and capital budgets;
ii. To present to the board of directors
ii. The integrity of the Company’s accounting
information on the following in order to
systems, sub-systems, internal controls, fund
strengthen and formalize corporate decision-
management, and managing the relationship with
making process
the external auditors;
a. Annual business plans, cash flow
iii. The Company’s financial and business reporting,
projection, forecasts and long term
tax planning, estimating and reporting, and
plans
regulatory reporting (corporate and securities);

b. Budget including capital, manpower and xiii. Financial risk management
overhead budgets along with variance
analysis xiv. Cash Management
xv. Short term investing
c. Quarterly operating results of the
Company as a whole and in terms of its xvi. Short term borrowing
business segments
xvii. Budgeting and Accounting
4. The CFO shall have Responsibilities towards
xviii. Designing a proper financial Model for the Business
Shareholders to provide all the necessary data to be Plan
presented in the “Director’s Report” and for this purpose xix. Based on data received from respective departments,
CFO must ensure the following carrying out analysis on
a. The financial statement, prepared by the management xx. Cost of fund
of Company, present fairly its states of affairs, the
result of its operations, cash flows and changes in xxi. Interest rates (both for deposits and lending)
equities xxii. Identifying major profit and cost centers
b. Proper books of accounts of the Company have be en xxiii. Maintenance of Investment in shares and securities
maintained by the relevant units and that operation &
computer controls are in place xxiv. Preparation of Financial Statements
c. Appropriate accounting policies have been consistently 6. The CFO has extensive responsibilities for internal
applied in preparation of financial statements and and external reporting, particularly
accounting estimates are based on reasonable an d g. All the financial information required for decision-
prudent judgment making by the Board of Directors and Chief Executive
d. International accounting standards, as applicable Officer is processed and furnished by the CFO.
in the country, have been followed in preparation of h. External reporting requirement is fulfilled by CFO, the
financial statements and any departure there from has accounts and financial statements are signed by the
been adequately disclosed CFO before they are sent to concerned authorities.
e. There has been no material departure from the best TERMS OF REFERENCE (TOR) FOR THE HEAD OF
practice of corporate governance as detailed in the INTERNAL AUDIT (HOIA)
listing regulations or applicable guidelines
1. Appointment, Reporting Relationships and
f. Internal and External Reporting Accountability
5. As a part of routine work, the CFO shall responsible The HOIA is an employee of the Bank who-
for overseeing
• Reports administratively to the Chief Executive Officer
vi. Coordination with the internal auditors for statutory (CEO) and operationally to the Chairman of the Audit
auditing Committee;
vii. Asset Liability Management • Is also accountable to the Audit Committee;

• Is responsible primarily for giving assurance on
viii. Treasury division the internal control arrangements in the Company
ix. Monitoring Cash Flows and playing a key role in promoting good corporate
governance;
x. Consulting with other departments, businesses units
• Must have a broad understanding of the organization
and or affiliated companies to improve financial
and its operations to effectively carry out his/her
performance
responsibilities.
xi. Strategic financial planning/ capital budgeting
xii. Cash forecasting

2. Roles, Duties and Responsibilities iv. People Management & Development
Roles, Duties and Responsibilities of the HOIA shall include- • To manage and oversee team performance
through performance planning, coaching and
i. Audit Planning/Design performance appraisals;
• To develop an annual audit plan using input from • To hold direct reports accountable for managing
the team and stakeholders to identify priorities and and developing their assignments to ensure the
resource requirements for the year to cover audit department’s goals are achieved;
of all the activities of the Company; • To provide ongoing feedback to the team to
• To meet with Directors and Managers to discuss ensure they develop the skills and competencies
needs and propose audits, to build stakeholder required for effective planning and individual
requirements into department plans; professional and personal career growth;
• To ensure plan is developed to meet the Audit • To motivate and inspire the team by providing
Committee’s expectations; them with the information and tools they
need to do their jobs well and meet customer
• To schedule and assign audits to team members,
expectations;
ensuring effective and efficient use of resources;
• To deal with performance issues, discipline as
• To ensure quality control of the team’s audit plans
necessary and address poor standards, ensuring
on an ongoing basis by reviewing and approving
department targets and customer satisfaction is
plans as they are developed and communicated to
not compromised;
clients;
• To manage the head count, recruiting and
• To ensure annual audit plans have contingency
deploying resources as required, to ensure the
built in, to provide unexpected audits to clients as
department budget is balanced and the right mix
they may surface;
of skills and strengths are being leveraged as
• To report to the Audit Committee at the required effectively as possible.
intervals on Internal Audit assignments including
planned reviews, investigations, risk advisory work v. Improving the Practice of Audits/Championing Risk
and any other ad-hoc activity as required. Management
ii. Conducting Audits • To build relationships with leaders across the

organization to understand issues and identify
• To oversee and provide quality control for the areas for improvement for the organization as a
internal audits, to ensure departmental mandate whole;
and business goals are met and that professional
• To support and encourage team members to be
standards are maintained at all times.
proactive in identifying opportunities to share
• To ensure completion of audit assignments to best practice with Directors and Managers to
provide independent, objective assurance to the improve the control environment;
Audit Committee.
• To develop new methodologies to improve
• To develop the team’s engagement with and the audit process, making it easier for the
support of major business change programs thus organization to request audits and implement
ensuring that appropriate consideration of risk recommendations;
and control is given to all change.
• To provide assistance to the business in meeting
iii. Reporting regulatory requirements;
• To ensure that internal audit reports are prepared • To keep abreast of developments in Corporate
and finalized in a timely manner and the same are Governance practices and advise the business
submitted before the Audit Committee; accordingly.
• To ensure that internal audit reports are issued vi. General
with all recommendations agreed and accepted
by the audited individual/unit. • To perform any other duties as are within the
scope, spirit and purpose of the job, the title of
the post and its grading as requested by the line
manager or Head of Unit/ Section/ Department/
Division.
INDEPENDENT DIRECTOR APPOINTMENT OF AUDITORS
Pursuant to Condition # 1.2 (i) of the Corporate Governance M/s Hoda Vasi Chowdhury & Co and M/s Shafiq Basak
Code issued by Bangladesh Securities and Exchange & Co. both are appointed as external Auditors by the
Commission (BSEC) vide its Notification No. BSEC/ Shareholders in the 25th Annual General Meeting held on
CMRRCD /2006-158/207/Admin/80 dated 03 June, 2018 15th September, 2020 at a fees of Taka 4,00,000/- each
and 2019 and as per section 15(9) of the Bank Companies for the year 2020. As per provision of Companies Act,1994,
Act,1991 (amendment upto-2018) Social Islami Bank Notification/Directive of BSEC and regulation of Dhaka
Limited appointed required numbers of Independent and Chittagong Stock Exchange (Listing) Regulations-2015
Directors to the Board of Directors of the Bank. The Board they are also eligible for appointing by the Shareholders in
of Directors of the Bank appointed 2 (two) Independent the up-coming AGM for the year-2021.
Directors namely: Professor A J M Shafiul Alam Bhuiyan,
Ph.D and Professor Mohammed Mizanur Rahman, Ph.D who APPOINTMENT OF COMPLIANCE AUDITORS
has been working as Professor at the renowned University
of Dhaka. As per compliance of condition 5.3(a) of the said Suraiya Parveen & Associates, a Practicing Chartered
Notification Professor A J M Shafiul Alam Bhuiyan, Ph.D Secretaries Firm was appointed as Compliance Auditor
discharging his responsibilities as the Chairman of the of the Bank for the year-2020 as per condition 9(2) of
Audit Committee of the Bank. He is also a Director of SIBL the Notification No.BSEC/CMRRCD/2006-158/207/
Investment Ltd (a subsidiary compny of SIBL) Professor Admin/80 dated 03 June, 2018 of Bangladesh Securities
Mohammed Mizanur Rahman, Ph.D also nominated as and Exchange Commission at an annual fee of Tk.35,000/-
an Independent Director of the SIBL Securities Limited (a (Taka thirty five thousand) only excluding VAT. They are
subsidiary company of social Islami Bank Limited) as per also eligible for appointed for the year- 2021.
compliance of the condition 2 (b) of the said Notification.
The Independent Directors in the Board exerts independent INFORMATION AVAILABILITY ON WEBSITE
views on the policy decisions and ensures that all decisions
The full text of the Annual Report 2020 including other
are unbiased and for the best interest of the bank. As per
financial reports are available in the company’s website
above corporate governance Code, no independent director
www.siblbd.com
of Social Islami Bank Limited
• holds more than one percent shares of the total paid- INVESTOR’S COMPLAIN DESK
up capital.
The bank has an Investor’s Complain Desk to investigate
• is not a sponsor of SIBL and is connected with the
any matters related to the Investors. Any aggrieved investor
Bank’s any sponsor or director or shareholder who
may submit his complain or query to the following address
holds one percent (1%) or more share of the total paid-
up capital on the basis of family relationship.
Company Secretary & Head of Investor Complain Desk
• does not have any other relationship, whether pecuniary City Center, Level-20
or otherwise, with the Bank or its Subsidiaries namely 90/1 Motijheel C/A, Dhaka-1000
SIBL Securities Limited and SIBL Investment Limited. Phone: 88 02 09612001122
• is not a member, director or officer of any stock Fax: 88 02 9568098
exchange. email: info@sibl-bd.com
• is not a shareholder, director or officer of any member

of stock exchange or an intermediary of the capital
market.
• is not a partner or an executive or was not a partner
or an executive during preceding 3 (three) years of the
SIBL’s statutory audit firm.
• is not an Independent Director more than 3(three)
listed companies.
• has not been convicted by a court of competent
jurisdiction as defaulter in payment of any loan to a
Bank or Non-Bank Financial Institute.
• has not been convicted for a criminal offence involving
moral turpitude.

GRATITUDE
The member of the Board of Directors of Social Islami Bank
Ltd. would like to place on record their gratitude to all the
valued Shareholders, Clients, Patrons and Well- Wishers
for their continued support and cooperation. We are also
indebted to the Government of Bangladesh, Bangladesh
Bank, Bangladesh Securities & Exchange Commission
(BSEC), Stock Exchanges, Central Depository Bangladesh
Ltd. (CDBL), Other Banks & Financial institutions, Office
of the Registrar of Joint Stock Companies & Firms and
all other concerned for their continued and kind support.
Finally, the Board would like to place on record their
deepest appreciation for the dedicated services rendered
by all the employees of the Bank.
Ma-assalam
On behalf of the Board of Directors
(Prof. Md. Anwarul Azim Arif)

Chairman
Board of Directors

Compliance Report under Condition No 9.00 of BSEC
COMPLIANCE REPORT ON BSEC’S NOTIFICATION
Status of Compliance with the conditions imposed by the Bangladesh Securities and Exchange Commission’s Notification
No. SEC/CMRRCD/2006-158/207/Admin/80 dated 3 June, 2018 issued under section 2CC of the Securities and Exchange
Ordinance, 1969:
(Report under Condition No. 9)
Compliance Status
(Put √ in the
Condition appropriate column) Remarks
Title
No. (if any)
Not
Complied
complied
1.00 Board of Directors
Size of the Board of Directors:
The total number of members of a company’s Board
1.1 √
of Directors(herein after referred to as “Board”) shall
not be less than 5 (five) and more than 20 (twenty)
1.2 Independent Director
At least one-fifth (1/5) of the total number
1.2(a) of directors in the company’s Board shall be √
independent directors
Do not hold any share in the company orholds less
1.2(b)(i) than one percent (1%) shares of the totalpaid-up √
shares of the company
Do not a sponsor of the company or is not
connected with the company’s any sponsor or
director or nominated director or shareholder of the
company or any of its associates, sister concerns,
subsidiaries and parents or holding entities who
1.2(b)(ii) √
holdsone percent (1%) or more shares of the total
paid-upshares of the company on the basis of
family relationship and his or her family members
also shallnot hold above mentioned shares in the
company
Who has not been an executive of the company in
1.2(b)(iii) √
immediately preceding 2 (two) financial years
Does not have any other relationship, whether
1.2(b)(iv) pecuniary or otherwise, with the company or it √
ssubsidiary or associated companies
Independent directors are not a member or TREC
1.2(b)(v) (Trading Right Entitlement Certificate) holder, √
director or officer ofany stock exchange
Independent director is not a shareholder, director
excepting independent director or officer of any
1.2(b)(vi) √
member or TREC holder of stock exchange or an
intermediary of the capital market

Independent director is not a partner or an
executive or was not a partner or an executive
during the preceding 3 (three) years of the
1.2(b)(vii) concerned company’s statutory audit firm or audit √
firm engaged in internal audit services or audit firm
conducting special audit or professional certifying
compliance of this Code
They are not the Independent directors in more than
1.2(b)(viii) √
5 (five) listed companies
Who has not been convicted by a court of competent
jurisdiction as a defaulter in payment of any loan
1.2(b)(ix) √
or any advance to a bank or a Non-Bank Financial
Institution (NBFI)
Who has not been convicted for a criminal offence
1.2(b)(x) √
involving moral turpitude;
The independent director(s) shall be appointed by
1.2(c) the Board and approved by the shareholders in the √
Annual General Meeting (AGM)
The post of independent director(s) cannot remain
1.2(d) √
vacant for more than 90 (ninety) days
The tenure of office of an independent director shall
be for a period of 3 (three) years, which may be
extended for 1 (one) tenure only.
A former independent director may be considered
1.2(e) √
for re appointment for tenure after a time gap of one
tenure.
The independent director shall not be subject to
retirement by rotation as the Companies Act, 1994.
1.3 Qualification of Independent Director (ID)
Independent director shall be a knowledgeable
individual with integrity who is able to ensure
1.3(a) compliance with financial laws, regulatory √
requirements and corporate laws and can make
meaningful contribution to the business.
Independent director shall have following
1.3(b) √
qualifications:
Business Leader who is or was a promoter or
director of anunlisted company having minimum
paid-up capital of Tk. 100.00 million or any
1.3(b)(i) √
listed company or a member of anynational or
international chamber of commerce or business
association
Corporate leader who is or was a top level
executive not lower than Chief Executive Officer
or Managing Director or Deputy Managing Director
or Chief Financial Officer or Head of Finance
1.3(b)(ii) or Accounts or Company Secretary or Head of √
Internal Audit and Compliance or Head of Legal
Service or a candidate with equivalent position of an
unlisted company having minimum paid-up capital
of Tk. 100.00 million or of a listed company

Former official of government or statutory or
autonomousor regulatory body in the position not
1.3(b)(iii) below 5th Grade ofthe national pay scale, who has √
at least educational background of bachelor degree
in economics or commerce or business or Law
University Teacher who has educational background
1.3(b)(iv) in Economics or Commerce or Business Studies or √
Law
Professional who is or was an advocate practicing
at leastin the High Court Division of Bangladesh
Supreme Courtor a Chartered Accountant or
Cost and Management Accountant or Chartered
1.3(b)(v) √
Financial Analyst or Chartered Certified Accountant
or Certified Public Accountant or Chartered
Management Accountant or Chartered Secretaryor
equivalent qualification
The independent director have at least 10 (ten)
1.3(c) years of experiences in any field mentioned in √
clause (b)
In special cases, above qualifications or experiences
1.3(d) may be relaxed subject to prior approval of the √
Commission.
1.4 Duality of Chairperson of the Board of Directors and Managing Director or Chief Executive Officer
The positions of the Chairperson of the Board and
the Managing Director (MD) and/or Chief Executive
1.4 (a) √
Officer (CEO) of the company shall be filled by
different individuals
The Managing Director (MD) and/or Chief Executive
1.4 (b) Officer (CEO) of a listed company shall not hold the √
same position in another listed company
The Chairperson of the Board shall be elected from
1.4 (c) √
among the non-executive directors of the company
The Board shall clearly define respective roles
1.4 (d) and responsibilities of the Chairperson and the √
Managing Director and/or Chief Executive Officer
In the absence of the Chairperson of the Board, the
remaining members may elect one of themselves
from non executive directors as Chairperson for
1.4 (e) √
that particular Board’s meeting; the reason of
absence of the regular Chairperson shall be duly
recorded in the minutes.
1.5 Directors report to shareholders
Industry outlook and possible future developments
1.5(i) √
in the industry
1.5(ii) Segment-wise or product-wise performance √
Risks and concerns including internal and external
1.5(iii) risk factors, threat to sustainability and negative √
impact on environment, if any
Discussion on cost of goods sold, gross profit
1.5(iv) √
margin and net profit margin
Discussion on continuity of any Extra-Ordinary gain
1.5(v) No such event arose
or loss

A detailed discussion on related party transactions
along with a statement showing amount, nature of
1.5(vi) √
related party, nature of transactions and basis of
transactions of all related party transactions
Utilization of proceeds from public issues, right
1.5(vii) √
issues and/ or through any others instruments
An explanation if the financial results deteriorate
1.5(viii) after the company goes for IPO, RPO, Rights Offer, No such event arose
Direct Listing etc.
Explanation on significant variance occurs between
1.5(ix) Quarterly Financial performance and Annual √
Financial Statements
Remuneration to directors including independent
1.5(x) √
directors
The financial statements prepared by the
management of the issuer company present fairly
1.5(xi) √
its state of affairs, the result of its operations, cash
flows and changes in equity
Proper books of account of the issuer company
1.5(xii) √
have been maintained
Appropriate accounting policies have been
consistently applied in preparation of the financial
1.5(xiii) √
statements and that the accounting estimates are
based on reasonable and prudent judgment
International Accounting Standards (IAS)
or International Financial Reporting Standards (IFRS),
1.5(xiv) as applicable in Bangladesh, have been followed in √
preparation of the financial statements and any
departure there from has been adequately disclosed
The system of internal control is sound in design and
1.5(xv) √
has been effectively implemented and monitored
Minority shareholders have been protected
from abusive actions by, or in the interest of,
1.5(xvi) √
controlling shareholders acting either directly or
indirectly and have effective means of redress
There is no significant doubt upon the
issuer company’s ability to continue as a going
1.5(xvii) concern, ifthe issuer company is not considered √
to be a going concern,the fact along with reasons
there of shall be disclosed
Significant deviations from the last year’s operating
1.5(xviii) results of the issuer company shall be highlighted √
and the reasons thereof shall be explained
Key operating and financial data of at least
1.5(xix) √
preceding 5 (five) years shall be summarized
If the issuer company has not declared dividend
1.5(xx) √
(cash or stock) for the year
Board’s statement to the effect that no bonus share
1.5(xxi) or stock dividend has been or shall be declared as √
interim dividend
The total number of Board meetings held during the
1.5(xxii) √
year and attendance by each director

Report on the pattern of shareholding disclosing the aggregate number of shares (along with name-wise details
1.5 (xxiii)
where stated below) held by:
Parent or Subsidiary or Associated Companies and
1.5(xxiii)(a) √
other related parties (name-wise details)
Directors, Chief Executive Officer, Company
Secretary, Chief Financial Officer, Head of Internal
1.5(xxiii)(b) √
Audit and Compliance and their spouses and minor
children (name-wise details)
1.5(xxiii)(c) Executives √
Shareholders holding ten percent (10%) or more
1.5(xxiii)(d) √
voting interest in the company (name-wise details)
In case of the appointment or reappointment of a director, a disclosure on the following information to the
1.5(xxiv)
shareholders:
1.5(xxiv)(a) A brief resume of the director √
Nature of his or her expertise in specific functional
1.5(xxiv)(b) √
areas
Names of companies in which the person also
1.5(xxiv)(c) holds the directorship and the membership of √
committees of the Board
A Management’s Discussion and Analysis signed by CEO or MD presenting detailed analysis of the company’s
1.5(xxv) position and operations along with a brief discussion of changes in the financial statements, among others,
focusing on
Accounting policies and estimation for preparation
1.5(xxv)(a) √
of financial statements
Changes in accounting policies and estimation,
if any, clearly describing the effect on financial
1.5(xxv)(b) √
performance or results and financial position as well
as cash flows in absolute figure for such changes
Comparative analysis (including effects of inflation)
of financial performance or results and financial
1.5(xxv)(c) position as wellas cash flows for current financial √
year with immediate preceding five years explaining
reasons thereof
Compare such financial performance or results and
1.5(xxv)(d) financial position as well as cash flows with the √
peer industry scenario
Briefly explain the financial and economic scenario
1.5(xxv)(e) √
of the country and the globe;
Risks and concerns issues related to the financial
1.5(xxv)(f) statements, explaining such risk and concerns √
mitigation plan of the company
Future plan or projection or forecast for company’s
operation, performance and financial position, with
1.5(xxv)(g) √
justification thereof,i.e., actual position shall be
explain to the shareholders inthe next AGM
Declaration or certification by the CEO and the CFO
1.5(xxvi) to the Board as required under condition No. 3(3) √
shall be disclosedas per Annexure-A
The report as well as certificate regarding
compliance of conditions of this Code as required
1.5(xxvii) √
under condition No. 9 shall be disclosed as per
Annexure-B and Annexure-C

1.6 Meetings of the Board of Directors
The company shall conduct its Board meetings
and record the minutes of the meetings as
well as keep required books and records in line
with the provisions of the relevant Bangladesh
1.6 √
Secretarial Standards (BSS) as adopted by the
Institute of Chartered Secretaries of Bangladesh
(ICSB) in so far as those standards are not
inconsistent with any condition of this Code.
1.7 Code of Conduct for the Chairperson, other Board members and Chief Executive Officer
The Board shall lay down a code of conduct,
based on the recommendation of the Nomination
and Remuneration Committee (NRC) at condition
1.7(a) √
No. 6, for the chairperson ofthe Board, other
board members and Chief Executive Officer of the
company;
The code of conduct as determined by the NRC shall
be posted on the website of the company including,
among others, prudent conduct and behavior;
1.7(b) confidentiality; conflict ofinterest; compliance with √
laws, rules and regulations; prohibition of insider
trading; relationship with environment, employees,
customers and suppliers; and independency
2.00 Governance of Board of Directors of Subsidiary Company
Provisions relating to the composition of the Board
of the holding company shall be made applicable
2 (a) √
to the composition of the Board of the subsidiary
company
At least 1 (one) independent director on the Board
2 (b) of the holding company shall be a director on the √
Board of thesubsidiary company
The minutes of the Board meeting of the subsidiary
2 (c) company shall be placed for review at the following √
Board meeting ofthe holding company
The minutes of the respective Board meeting of
2 (d) the holding company shall state that they have √
reviewed the affairs of the subsidiary company also
The Audit Committee of the holding company shall
2 (e) also review the financial statements, in particular √
the investments made by the subsidiary company.
Managing Director (MD) or Chief Executive Officer (CEO), Chief Financial Officer (CFO), Head of Internal Audit
3.00
and Compliance(HIAC) and Company Secretary (CS)
3.1 Appointment
The Board shall appoint a Managing Director
(MD) or Chief Executive Officer (CEO), a Company
3.1 (a) √
Secretary (CS), a Chief Financial Officer (CFO) and a
Head of Internal Audit and Compliance (HIAC);
The positions of the Managing Director (MD) or
Chief Executive Officer (CEO), Company Secretary
3.1 (b) (CS), Chief Financial Officer (CFO) and Head of √
Internal Audit and Compliance (HIAC) shall be filled
by different individuals

The MD or CEO, CS, CFO and HIAC of a listed
3.1 (c) company shall not hold any executive position in √
any other company at the same time
The Board shall clearly define respective roles,
3.1 (d) responsibilities and duties of the CFO, the HIAC and √
the CS
The MD or CEO, CS, CFO and HIAC shall not be
removed from their position without approval of the
3.1 (e) √
Board as well as immediate dissemination to the
Commission and stock exchange(s)
3.2 Requirement to attend Board of Directors’ Meetings
The MD or CEO, CS, CFO and HIAC of the company
3.2 √
shall attend the meetings of the Board:
3.3 Duties of Managing Director (MD) or Chief Executive Officer(CEO) and Chief Financial Officer (CFO)
The MD or CEO and CFO shall certify to the board that they have reviewed financial statements for the year and that
3.3(a)
to the best of their knowledge and belief
These statements do not contain any
materially untrue statement or omit
3.3(a)(i) √
any material fact or contain statements
that might be misleading
These statements together present a true and fair
view of the company’s affairs and are in compliance
3.3(a)(ii) √
with existing accounting standards and applicable
laws;
The MD or CEO and CFO shall also certify that
there are, to the best of knowledge and belief, no
transactions entered into by the company during
3.3(b) √
the year which are fraudulent, illegal or in violation
of the code of conduct for the company’s Board or
its members
The certification of the MD or CEO and CFO
3.3(c) √
shall be disclosed in the Annual Report.
Board of Directors’ Committee: For ensuring good governance in the company, the Board shall have at least
4
following sub-committees:
4 (i) Audit Committee √
4 (ii) Nomination and Remuneration Committee. Unresolved Issue
5 Audit Committee
5.1 Responsibility to the Board of Directors √
The company shall have an Audit Committee as a
5.1 (a) √
subcommittee of the Board
The Audit Committee shall assist the Board in
ensuring that the financial statements reflect true
5.1 (b) and fair view of the state of affairs of the company √
and in ensuring a good monitoring system within
the business
The Audit Committee shall be responsible to the
5.1 (c) Board; the duties of the Audit Committee shall be √
clearly set forth in writing
5.2 Constitution of the Audit Committee
The Audit Committee shall be composed of at least
5.2 (a) √
3 (three)members;

The Board shall appoint members of the Audit
committee who shall be non-executive directors of
5.2 (b) the company excepting Chairperson of the Board √
and shall include at least1 (one) independent
director;
All members of the audit committee should
be “financially literate” and at least 1 (one)
5.2 (c) member shall have accounting or related financial √
management background and 10 (ten) yearsof such
experience;
When the term of service of any Committee member
expires or there is any circumstance causing any
Committee member to be unable to hold office
before expiration of the term of service, thus making
the number of the Committee members to be lower
5.2 (d) than the prescribed number of 3 (three) persons, √
the Board shall appoint the new Committee member
to fill up the vacancy immediately or not later than
1 (one) month from the date of vacancy in the
Committee to ensure continuity of the performance
of work of the Audit Committee
The company secretary shall act as the secretary of
5.2 (e) √
the Committee
The quorum of the Audit Committee meeting shall
5.2 (f) not constitute without at least 1 (one) independent √
director.
5.3 Chairperson of the Audit Committee
The Board shall select 1 (one) member of the
5.3 (a) Audit Committee to be Chairperson of the Audit √
Committee, who shall be an independent director;
In the absence of the Chairperson of the Audit
Committee, the remaining members may elect one
of themselves as Chairperson for that particular
meeting, in that case there shall be no problem of
5.3 (b) √
constituting a quorum as required under condition
No. 5(4)(b). And the reason of absence of the
regular Chairperson shall be duly recorded in the
minutes.
Chairperson of the Audit Committee shall remain
present in the Annual General Meeting (AGM):
Provided that in absence of Chairperson of the
Audit Committee, any other member from the
5.3 (c) √
Audit Committee shall be selected tobe present in
the annual general meeting (AGM) and reason for
absence of the Chairperson of the Audit Committee
shall be recorded in the minutes of the AGM.
5.4 Meeting of the Audit Committee
The Audit Committee shall conduct at least its four
5.4 (a) √
meetings in a financial year.
The quorum of the meeting of the Audit Committee
shall be constituted in presence of either two
5.4 (b) members or two-third of the members of the Audit √
Committee, whichever is higher, where presence of
an independent director is a must.

5.5 Role of Audit Committee
5.5 (a) Oversee the financial reporting process; √
5.5 (b) Monitor choice of accounting policies and principles √
Monitor Internal Audit and Compliance process to
ensure that it is adequately resourced, including
5.5 (c) approval of the Internal Audit and Compliance Plan √
and review of the Internal Audit and Compliance
Report
Oversee hiring and performance of external
5.5 (d) √
auditors;
Hold meeting with the external or statutory auditors
5.5 (e) for review of the annual financial statements before √
submission to the Board for approval or adoption
Review along with the management, the annual
5.5 (f) financial statements before submission to the √
Board for approval
Review along with the management, the quarterly
5.5 (g) and half yearly financial statements before √
submission to the Board for approval
5.5 (h) Review the adequacy of internal audit function √
Review the Management’s Discussion and Analysis
5.5 (i) √
before disclosing in the Annual Report
Review statement of all related party transactions
5.5 (j) √
submitted by the management
Review Management Letters or Letter of Internal
5.5 (k) √
Control weakness issued by statutory auditors;
Oversee the determination of audit fees based on
scope and magnitude, level of expertise deployed
5.5 (l) √
and time required for effective audit and evaluate
the performance of external auditors
Oversee whether the proceeds raised through Initial
Public Offering (IPO) or Repeat Public Offering
5.5 (m) (RPO) or Rights Share Offer have been utilized as N/A
per the purposes stated inrelevant offer document
or prospectus approved by the Commission
5.6 Reporting of the Audit Committee
5.6(a) Reporting of the Board of Directors
The Audit Committee shall report on its activities
5.6 (a)(i) √
to the Board.
The Audit Committee shall immediately report
5.6 (a)(ii)(a) to the Board on the following findings report on
conflicts of interests
Suspected or presumed fraud or irregularity or
5.6 (a)(ii)(b) material defect identified in the internal audit and No Such incident arose
compliance process or in the financial statements;

Suspected infringement of laws, regulatory
5.6 (a)(ii)(c) compliances including securities related laws, rules No Such incident arose
and regulations
Any other matter which the Audit Committee
5.6 (a)(ii)(d) deems necessary shall be disclosed to the Board No Such incident arose
immediately
Reporting to the Authorities: If the Audit
Committee has reported to the Board about
anything which has material impact on the
financial condition and results of operation and
has discussed with the Board andthe management
that any rectification is necessary and if the Audit
5.6 (b) Committee finds that such rectification has been No Such incident arose
unreasonably ignored, the Audit Committee shall
report such finding to the Commission, upon
reporting of such matters to the Board for three
times or completion of a period of 6 (six)months from
the date of first reporting to the Board, whichever
is earlier
Reporting to the shareholders and General
Investors: Report on activities carried out by the
Audit Committee, including any report made to the
5.7 Board under condition No. 5(6)(a)(ii) above during No Such incident arose
the year, shall be signed by the Chairperson of the
Audit Committee and disclosed in the annual report
of the issuer company
6 Nomination and Remuneration Committee (NRC)
The company shall have a Nomination and
6.1 (a) Remuneration Committee (NRC) as a sub-
committee of the Board
The NRC shall assist the Board in formulation of
the nomination criteria or policy for determining
qualifications, positive attributes, experiences and
6.1 (b) Unresolved Issue
independence of directors and top level executive
as well as a policy for formal process of considering
remuneration of directors, top level executive;
The Terms of Reference (ToR) of the NRC shall be
6.1 (c) clearly setforth in writing covering the areas stated
at the condition No.6(5)(b).
6.2 Constitution of the NRC
The Committee shall comprise of at least three
6.2 (a)
members including an independent director;
All members of the Committee shall be non-
6.2 (b)
executive directors;
Members of the Committee shall be nominated and
6.2 (c)
appointed by the Board;
The Board shall have authority to remove and
6.2 (d)
appoint any member of the Committee;

In case of death, resignation,
disqualification, or removal of any member
of the Committee or in any other cases of
6.2 (e)
vacancies, the board shall fill the vacancy within
180 (one hundred eighty) days of occurring such
vacancy in the Committee;
The Chairperson of the Committee may appoint or
co-opt any external expert and/or member(s) of
staff to the Committee as advisor who shall be non-
6.2 (f) voting member, if the Chairperson feels that advice
or suggestion from such external expert and/or
member(s) of staff shall be required or valuable for
the Committee;
The company secretary shall act as the secretary of
6.2 (g)
the Committee;
The quorum of the NRC meeting shall not constitute
6.2 (h) without attendance of at least an independent
director;
No member of the NRC shall receive, either directly
or indirectly, any remuneration for any advisory or
6.2 (i)
consultancy role or otherwise, other than Director’s
fees or honorarium from the company
6.3 Chairperson of the NRC
The Board shall select 1 (one) member of the NRC
6.3 (a) to be Chairperson of the Committee, who shall be
an independent director
In the absence of the Chairperson of the NRC, the
remaining members may elect one of themselves
6.3 (b) as Chairperson for that particular meeting, the
reason of absence of the regular Chairperson shall
be duly recorded in the minutes;
The Chairperson of the NRC shall attend the annual
general meeting (AGM) to answer the queries of the
shareholders: in absence of chairperson of the NRC,
any other member from the NRC shall be selected
6.3 (c)
to be present in the annual general meeting (AGM)
for answering the shareholders queries and reason
for absence of the chairperson of the NRC shall be
recorded in the minutes of the AGM
6.4 Meeting of the NRC
The NRC shall conduct at least one meeting in a
6.4 (a)
financial year;
The Chairperson of the NRC may convene any
6.4 (b) emergency meeting upon request by any member
of the NRC;
The quorum of the meeting of the NRC shall be
constituted in presence of either two members
or two third of the members of the Committee,
6.4 (c)
whichever is higher, where presence of an
independent director is must as required under
condition No. 6(2)(h);
The proceedings of each meeting of the NRC shall
6.4 (d) duly be recorded in the minutes and such minutes
shall be confirmed in the next meeting of the NRC.

6.5 Role of the NRC
NRC shall be independent and responsible or
6.5(a)
accountable to the Board and to the shareholders;
6.5 (b) NRC shall oversee, among others, the following matters and make report with recommendation to the Board:
formulating the criteria for determining qualifications, positive attributes and independence of a director and
6.5(b)(i) recommend a policy to the Board, relating to the remuneration of the directors, top level executive, considering
the following:
The level and composition of remuneration is
reasonable and sufficient to attract retain and
6.5(b)(i)(a)
motivate suitable directors to run the company
successfully
The relationship of remuneration to performance
6.5(b)(i)(b) is clear and meets appropriate performance
benchmarks
Remuneration to directors, top level executive
involves a balance between fixed and incentive
6.5(b)(i)(c) pay reflecting short and long-term performance
objectives appropriate to the working of the
company and its goals
Devising a policy on Board’s diversity taking into
6.5(b)(ii) consideration age, gender, experience, ethnicity,
educational background and nationality
Identifying persons who are qualified to become
directors and who may be appointed in top level
6.5(b)(iii) executive position in accordance with the criteria laid
down, and recommend their appointment and removal
to the Board
Formulating the criteria for evaluation of
6.5(b)(iv) performance of independent directors and the
Board
Identifying the company’s needs for employees
6.5(b)(v) at different levels and determine their selection,
transfer or replacement and promotion criteria
Developing, recommending and reviewing annually
6.5(b)(vi) the company’s human resources and training
policies;
The company shall disclose the nomination and
remuneration policy and the evaluation criteria and
6.5(c)
activities of NRC during the year at a glance in its
annual report.
7. External or Statutory Auditors
The issuer company shall not engage its external or statutory auditors to perform the following services of the
7.1
company, namely:-
7.1 (i) Appraisal or valuation services or fairness opinions; √
Financial information systems design and
7.1 (ii) √
implementation;
Book-keeping or other services related to the
7.1 (iii) √
accounting records or financial statements;
7.1 (iv) Broker-dealer services; √
7.1 (v) Actuarial services; √
7.1 (vi) Internal audit services or special audit services; √
7.1 (vii) Any service that the Audit Committee determines; √

Audit or certification services on compliance of
7.1 (viii) corporate governance as required under condition
√
No. 9(1)
7.1 (ix) Any other service that creates conflict of interest. √

No partner or employees of the external audit firms shall possessany share of the company they audit at least
7.2 during the tenure oftheir audit assignment of that company; his or her familymembers also shall not hold any
shares in the said company:
Representative of external or statutory auditors
shall remainpresent in the Shareholders’ Meeting
7.3 √
(Annual General Meeting or Extraordinary General
Meeting) to answer the queries of theshareholders.
8 Maintaining a website by the Company.
The company shall have an official website linked

8.1 √
with the website of the stock exchange
The company shall keep the website functional

8.2 √
from the date of listing
The company shall make available the detailed

disclosures on it swebsite as required under
8.3 √
the listing regulations of the concerned stock
exchange(s).
9 Reporting and Compliance of Corporate Governance.
The company shall obtain a certificate from a

practicing Professional Accountant or Secretary
(Chartered Accountant or Cost and Management
Accountant or Chartered Secretary)other than
9.1 √
its statutory auditors or audit firm on yearly basis
regarding compliance of conditions of Corporate
GovernanceCode of the Commission and shall such
certificate shall be disclosed in the Annual Report.
The professional who will provide the certificate

on compliance of this Corporate Governance Code
9.2 √
shall be appointed by the shareholders in the annual
general meeting
The directors of the company shall state, in

accordance with the Annexure-C attached, in the
9.3 √
directors’ report whether the company has complied
with these conditions or not.

REPORT ON
GOING CONCERN
The board of Directors of the bank has made an annual

assessment whether there exists a material uncertainty
which may be an indicative of significant doubt about SIBL’s
ability to continue as going concern. In this regard, the Board
of Directors of the bank has made appropriate inquiries,
analysis, review and estimation in the backdrop of existing
and future financial and operational strength of the bank. The
Board of Directors are convinced and provide a reasonable
assurance to the stakeholders as to SIBL’s continuity as a
going concern for the foreseeable future and accordingly
the bank has been adopting the ‘going concern’ basis for
preparing financial statements.
The financial performance of the bank was good and

improving steadily over the years. While analyzing the 5 years
comparative financial position of the bank, we find that all
the basic indicators of the bank is positive and the bank is
moving towards its way of ‘Journey towards continuous
excellence’ leaving a growth curve

Gaining public confidence day by day. Both deposits and Perception
investment are maintaining upward trend over the previous
years. Although the consequences of unusual and abrupt increase
in the deposit and borrowing rate cannot be avoided, Social
• Built an excellent regulatory compliance culture. Islami Bank Ltd. (SIBL) takes all the appropriate measures
• Practicing best Corporate Governance. to minimize the negative consequences. For profit rate
risks, the Bank currently pursues a policy under which profit
• Introducing state-of-the-art Information & Technology. rates can be revised for any unusual and abrupt change at
• Invented IT-based diversified products and services its own discretion as and when required. Moreover, SIBL
that are tailored to different economic class of people foreign exchange risk remains at minimum level as all of
of the society in order to bring the un-banked people its foreign trade & remittance transactions are carried out
into banking channels. on behalf of the customers and there is no direct selling
or buying of foreign currency i.e. dealing room operation.
• Motivated employees, excellent working work force &
The demand of foreign currency payment is mostly backed
team spirit, competitive pay scale &long term benefits.
by Exports earnings and remittance. Treasury continuously
• Outstanding Assets Liability Management for proper monitors price movements of foreign exchange and uses
liquidity planning & management. various hedging techniques to manage its open position in
• Expanded area of operation from urban to rural. such a way that minimizes risk and maximizes return.
• Effective Risk management system. NON-PAYMENT RISK
• Outstanding asset quality.
Non-payment risk can arise if the Bank becomes unable
• Outstanding Credit Rating both in short term and long to repay to its depositors over the counter or on time due
term. to the impacts of (i) global financial crisis (ii) pre-matures
• Excellent public communication, branding and media encashment (iii) economic recession (iv) natural calamity
image. (v) international sanctions (vi) adverse classification of
investments (vii) serious liquidity crunch (viii) assets
• Paying dividend consistently.
liability mismatch (ix) limit less ID ratio etc. may have a
• Positive key financial indicators. direct negative impact on cash flow and profitability of the
bank. The situation would fell the bank into serious trouble.
Banking business involves a high degree of risk and SIBL is
operating in an industry involving both external and internal Perception
risk factors having direct as well as indirect effects on the
financial position. Here, the Board of Directors of the Bank The management of SIBL is always concerned about the
has carefully analyzed the financial position of the bank prevailing and upcoming future changes in the global
and estimated the issue of continuity of the bank as going financial policies and shall response appropriately and
concern considering some risk factors that may seriously timely to safeguard its interest. The Bank has a very strong
effects. If any of the following risks actually occur, business, financial background as well as cash flow along with
results of operations and financial condition could suffer. diversified business package, that’s why the risk is very
negligible. Moreover, the bank has a clear policy to maintain
PROFIT RATE & FOREIGN CURRENCY RISKS its ID Ratio (Investment Deposit Ratio) to 89.00% and an
ideal deposit mix. Structured liquidity profile of the bank
Volatility in money market both in local and foreign, shows that all assets and liabilities are being well managed
increase in Investment demand, Increase Import and and shaped. The bank has specific policy guidelines on
decrease exports, slow remittance etc. may raise the ‘stress liquidity management’. Besides that, ALCO (Asset
rate of profit on deposit & borrowings including foreign Liability Committee) of the bank is a powerful committee
currency. The Bank’s financing in different sectors is entrusted with the overall liquidity management. So the
generally structured at fixed and variable rates for specified bank believe that if for some unwanted situation excessive
terms. A change in the Government’s monetary policy also premature encashment occurs over the counter, capable to
tends to increase the rates. Increase in profit rates or non- shape up things. In the history of operation, SIBL has not
availability of Foreign Currency could adversely affect the recorded a single case of ‘Non-Payment’.
bank’s operations.

MANAGEMENTS RISK Perception
There may arise Management Risk in the Bank, which SIBL has a very good profitability record and the
associates ineffectiveness, conflict of interest, destructive, management is well aware about business risk. The Bank is
or under-performing management that may hamper the operating in a highly competitive market as modern banking
smooth operation of the Bank and fell the organization in a industry has brought greater business diversification. The
question of going concern. Bank has a dedicated team to find new scope to expand its
business. The risk management team is working to identify
Perception and manage different types of risk including business risk.
SIBL Securities Limited and SIBL Investment Limited are
Social Islami Bank Limited (SIBL) has a very effective
the subsidiaries of SIBL incorporated with the objective to
and competent management, which consistently makes
carry on the business of stock brokers, dealers in relation
effective policy decision. Since inception up-to 31.12.2020,
to shares and securities dealings, to underwrite, manage
the Board of Directors of the Bank has discharged their
and distribute the issue of stocks etc. Thus, SIBL also
duties and responsibilities through 459 number of board
reduces the industry risk by making versatile opportunity
meeting. The Board of Detectors has formulated code
of business in the financial sector. Moreover, to make the
of conducts including role and responsibilities for its
operation competitive, the bank has implemented one of
Chairman, Board Member, Managing Director, Company
the best world class Information Technology platform in
Secretary, Chief Financial Officer & Head of Internal Control
the bank to ensure faster and safer delivery of services
& Compliance Division of the Bank. The bank is a compliant
to the customers on 24/7 basis. The bank has built up
of corporate governance system imposed by Bangladesh
its alternative delivery channel infrastructure to offer
Securities and Exchange Commission (BSEC) and there
the full suite of ATMs, POS, Internet Banking, and SMS
is no such evidence recorded so far which amounts to-
banking for its customers. In order to support its growth
management risk.
strategies in future, the bank has made a strategic decision
OPERATIONAL RISK to change its core banking software to a more robust and
internationally tested system. As its unique contribution to
Operational risk is the risk of potential losses from a a truly broad-based and participatory electronic banking
breakdown in internal processes and systems, deficiencies system in Bangladesh, SIBL currently has a wide coverage
in people and management or operational failure arising of 168 Branches, as on December 31, 2020. So, the board
from external events which may seriously shake the entity of directors estimated that there is no sign that the bank
towards its continuation as going concern. fall in trouble on the ground of business risk and hard
competitions.
Perception
POTENTIAL OR EXISTING GOVERNMENT
The internal control and compliance division of the bank REGULATIONS
controls the operational procedure of the Bank. Internal
Control and compliance division undertakes periodical The Bank operates under the specific guidelines laid down
and special audit of the Branches and departments at the by Bangladesh Bank, Bangladesh Securities and Exchange
Head Office to review the operation and compliance of Commission (BSEC) and other regulatory authorities. The
statutory requirements. The Audit Committee of the Board Bank also operates under Companies Act 1994 and other
subsequently reviews the reports of the internal control related regulations, Bank Companies Act 1991, Income
and compliance division. So, the bank is aware about its Tax Ordinance 1984, Value Added Tax (VAT) Act 1991 and
operational risk and accordingly policies and procedures Value Added Tax (VAT) Rules 1991. Any abrupt change
are regularly been reviewed by the Board of Directors of the of the policies made by the regulatory authorities may
bank to ensure risk free operation. adversely affect the business of the Company.
BUSINESS RISK Perception
The bank may face business risk while doing their banking Unless any policy change negatively and materially affects
business. Business risk implies uncertainty in profit or the industry as a whole, the business of the Bank is
danger of loss and the events that could pose a risk due to expected not to be affected significantly. Like all Scheduled
some unforeseen events in future, which causes business Banks in Bangladesh, SIBL’s asset growth and cost of CRR
of SIBL to fail. Moreover, strong competitor in the industry and SLR are adjustable as per requirement.
may compel SIBL to squeeze its operations or may invite
hard competitions

POTENTIAL CHANGES IN GLOBAL/NATIONAL PORTFOLIO MANAGEMENT RISK
POLICIES
Poor quality of project appraisal, slack monitoring
A financial institution’s ability to operate a profitable of outstanding debts, inadequate/inappropriate
business is directly related to the monetary and fiscal policy documentation and other forms of management
of the country at any given time. Imposition of restrictive efficiencies may affect the quality of SIBL portfolio.
monetary and/or fiscal policy by the government at any
time may affect a company’s profitability. Again, change Perception
in the existing global or national policies can have either Under the close supervision of SIBL’s prudent shareholders
positive or negative impacts for the Bank. and the Board of Directors, the management of SIBL has
Perception developed skills and ability to appraise a project efficiently,
ascertain the risk factors, address them and monitor
The management of SIBL is always concerned about the performance closely.
prevailing and upcoming future changes in the global or
national policy and responds appropriately and timely to CREDIT/INVESTMENT RISK
safeguard its interest.
Some of the customers or obligators may fail to meet the
HISTORY OF NON-OPERATION terms of any contract or otherwise fail to perform as agreed
which will in turn reduce the profit of the Bank, decreasing
Is there any history for the Bank to become non-operative shareholders’ earning.
from its commercial operation.
Management Perception
Perception
Considering the key elements of credit risk, the Bank has
The Social Islami Bank Limited (SIBL), a second-generation segregated duties of the officers/executives involved in
bank, was incorporated on November 05, 1995. SIBL credit related activities. Separate division for Corporate,
started its commercial operation on November 22, 1995 SME and retail has been formed which are entrusted
and completed 26 (Twenty six) year successful banking with the duties of maintaining effective relationship with
operation based on Shariah Principles without having any the customers, marketing of credit products, exploring
history of non-operation. SIBL has now 168 branches all new business opportunities etc. for transparency in the
over the Country with two subsidiary companies - SIBL operation during the entire credit period–i) Investment
Securities Ltd. & SIBL Investment Ltd. Targeting poverty, Approval Committee, ii) Investment Administration
The Social Islami Bank Limited is indeed a concept of 21st Department, iii) Recovery Unit and iv) Impaired Asset
century participatory three sector banking model in one. management have been set up.
In the formal sector, it works as an Islamic participatory
Commercial Bank with human face approach to credit Based on the above discussion, Board of Directors of
and banking on the profit and loss sharing. The Bank is the bank anticipated that it is appropriate to adopt going
an independent body that is operated by its Memorandum concern assumptions and there is no material uncertainty
& Articles of Association and other applicable laws in preparing financial statements.
implemented by the Government of Bangladesh. Besides,
Ma-assalam
the Bank’s financial strength is satisfactory. It has highly
experienced Directors and Management team which makes On behalf of the Board of Directors
the Bank more efficient and stronger for any commercial
operations. So, the chance of becoming non-operative for
the risk Bank is minimum.

Chairman
Board of Directors

REPORT OF THE BOARD AUDIT COMMITTEE
The Board Audit Committee was duly constituted by the Board of Directors of the Bank and reconstituted in the 412th
Board of Directors Meeting held on 21.03.2018 in compliance with the Bangladesh Bank and Bangladesh Securities
Exchange Commission Guidelines (Now, Corporate Governance Code). The Audit Committee assists the Board in fulfilling
its oversight responsibilities where accountability stands for financial reporting process, Internal Control System, Internal
and External audit process, management of the risks of the Bank. The Committee review, monitor and assess the activities
& performance of the Bank and establish the policies and procedures which comply with the existing laws & regulations.
Following Directors were the members of the Board Audit Committee for the Year 2020:
Sl. No. Name Status in the Bank Status in the Committee

01 Professor A J M Shafiul Alam Bhuiyan, Ph.D Independent Director Chairman
02 Mr. Md. Kamal Uddin Director Member
03 Dr. Md. Jahangir Hossain Director Member
Meetings of the Board Audit Committee:

The Board Audit Committee had 143 nos. (One hundred forty three) Meetings in the previous years since inception in the
year 2003, out of which 05 Meetings were conducted in the Year 2020 and the attendance of the members was as follows:
Name No. of Meetings Held No. of Meetings Attended

Professor A J M Shafiul Alam Bhuiyan, Ph.D 05 05
Mr. Md. Kamal Uddin 05 04
Dr. Md. Jahangir Hossain 05 05
Disclosure by Board Audit Committee: • The Committee discussed and reviewed compliance
position of inspection report on “Core Risk
• The Committee reviewed annual financial statement Management” conducted by Bangladesh Bank based
of the Bank for the year 31 December 2019 as certified on 30 June 2019 and the “Management Letter on
by the External Auditors before submission to the financial statements for the year ended 31 December
Board for consideration. 2019” of SIBL submitted by the external auditors for
onward submission to the Board.
• Reviewed un-audited quarterly (Q1, Q2 and Q3)
financial statements of the Bank for the year 2020
before submission to the Board for consideration. • The Committee also reviewed the financial
statements/investments of the subsidiaries: SIBL
• The Committee reviewed the integrity of the financial Securities Limited and SIBL Investment Limited.
statements of the Bank to ensure that these reflect a
true and fair view of the Bank’s statement of affairs.
• Pursuant to Condition No. 5(6)(a) of the Corporate
• The Committee while reviewing the financial Governance Code issued by BSEC, the Committee
statements ensured that proper disclosure required reviewed the Internal Control System and Financial
under International Accounting Standards as adopted Statements. The Committee observed that there was
in Bangladesh have been made and also complied no conflict of interest or material defect in the internal
with the Companies Act and various other rules and control system of the Bank.
regulations applicable for business.
• The Committee discussed with the statutory auditors • The Committee reviewed the Integrated Annual Health
about the nature and scope of audit as well as had Report for the year 2019 and recommended to the
post-audit discussions to address areas of concern. Board for consideration and approval.

• The Committee approved the internal audit plan
and gave direction to the internal auditors where
appropriate for carrying out in depth audit to ensure
that the company or its assets are not exposed to
undue risk.
• The Committee reviewed the Internal Auditors Reports

and suggested appropriate actions where needed. The
Internal Auditors were advised to carryout audit of all
the branches of the Bank.
• The Committee reviewed ICCD Manual for the year

2020 and suggested appropriate actions where
needed. The Internal Auditors were advised to carry
out the instruction of the ICCD Manual.
• The Committee discussed the draft copy of

“Whistleblower Protection Policy” for the employees
of the Bank for onward submission to the Board for
approval.
• The Committee recognized the observations of the

Internal Audit Division regarding internal control,
activities and suggestions made to improve operational
systems and procedures and their implementation.
• The Committee reviewed the compliance position,

policies, regulations and applicable law in general.
• The Committee observed that risk management

associated with the banking business was adequately
controlled.
Professor A J M Shafiul Alam Bhuiyan, Ph.D.

Chairman
Audit Committee

REPORT ON NATIONAL INTEGRITY STRATEGY
National Integrity Strategy National Integrity Strategy: Commercial
Organizations in the Private Sector
Integrity means behavioral excellence influenced by
morality and honesty and adherence to time-tested Private sector is playing an increasingly important role
norms, values, customs and principles of a society. At in the socio-economic development and contributing to
the individual level, it means being dutiful and honest. wealth creation and value addition to meet the demand
National Integrity Strategy (NIS) is a living document of of the population. Integrity of this sector has paramount
Bangladesh Government with the hope that this NIS will importance. The culture of investment-default needs to be
play its desired role in building Bangladesh a self sufficient eliminated. Besides that ‘Protection of Consumer Rights
“Shonar Bangla”. Act’ has to be implemented properly. The main challenges
Bangladesh government approved the National Integrity in this regard are:
Strategy (NIS) in October, 2012 and has undertaken
• Addressing the investment (loan) default problem,
programs through NIS to establish a system of governance
that creates trust among citizens. For this reason, the • Promotion of corporate governance,
strategy targets a broad audience like government owned
and Non Government Organizations with the vision to • Awarding performance-based fair salary and wages to
build this country a “Shonar Bangla” where the mission is the employees,
to establish good governance in the state institutions and
society. • Proper enforcement of the law on consumer rights,
The integrity system comprises both government and • Prevention of collusive practices in business by
non government institutions. In facilitating application of enforcing law of land,
the NIS, the government wishes to engage not only the
state institutions such as Executive Organ and Public • Promotion of a culture of self-control by Chambers
Administration, Parliament, Judiciary, Election Commission, and Association.
Attorney-General, Public Service Commission, Comptroller
and Auditor-General, Ombudsman, Anti Corruption SIBL Integrity Strategy
Commission, Local Government Organizations but also the
Social Islami Bank Ltd (SIBL), a second-generation
non government institutions including financial institutes,
private sector Bank, operating since 22 November 1995
political parties, Industrial and Commercial Organizations
based on Shariah Principles, has now 168 branches and
in the Private Sector, NGOs and Civil Society, Family,
79 sub-branches all over the country with two subsidiary
Educational Institutions, Media. Furthermore, Government
companies named SIBL Securities Ltd. & SIBL Investment
and Non Government educational and religious institutions
Ltd. It is one of the prime goals and responsibilities of
will also be key players of NIS.
SIBL to secure employee rights, and to ensure equality
Challenges of NIS: of opportunity and dispensation of economic and social
justice. SIBL is dedicated to ensure employee’s welfare.
• Promulgation of Civil Service Act;
• Increased functional freedom of public service with To support the total activities of the Government of
stronger accountability; Bangladesh in establishing NIS, SIBL has formed a
Committee called “SIBL Integrity Committee” as per BRPD
• Enhanced efficiency and effectiveness in
Circular No 21, dated: 12/11/2013 headed by Deputy
administrative activities;
Managing Director of the bank assisted by a Focal Point
• Establishing links between promotion, transfer, pay Officer. The committee has taken responsibilities to
and emoluments with appraised performance; implement NIS activities throughout the bank. The prime
• Introduction of a competitive pay and incentive objective of this committee is to prevent corruption and to
structure; establish integrity in every sphere of the Bank to eradicate
corruption from the Bank as well as from society and state.
• Overall reform by ensuring equitable opportunities for
different cadre services; We believe that the issue of integrity should not be confined
• Making citizens friendly with law enforcing agencies; at the top level of institutions. Rather, each institution is
• Fair, neutral and visible decision making capability in expected to find mechanisms to implement institutional
public administration. strategies at different level to implement National Integrity

Strategy. In 2020, a total of 04 (four) numbers of SIBL
Integrity Committee meeting were held. Several steps were
taken to promote integrity within the institution, these are-
• Ensuring the attainment of a egalitarian society which

would be free from exploitation,
• Guaranteeing employees’ rights and freedom as per

rules of the Bank,
• Respecting self dignity and commitment to the

institution,
• Creating a justified opportunity for all employees of

the institution,
• Ensuring participation of women in all spheres of the

institution,
• Paying everyone for work on the basis of the principle

of ability and work done,
• Providing integrity training to 1995 employees,
• Auditing on regular basis and promoting ethical

practice,
• Formulating branch level integrity committee for

better moral exercise.
A person with integrity demonstrates sound moral and

ethical principles and does the right thing, no matter
who’s watching. Integrity is the foundation on which
coworkers build relationships and trust, and it is one of the
fundamental values that employers seek in the employees
that they hire. To have integrity means that a person is
self-aware, accountable, responsible, and truthful and that
their actions are internally consistent. By sowing integrity
awareness in individual level, our bank aims to grow a
banyan tree of ethical greatness to promote institution’s
reputation as well as to perform social responsibility.

DIVIDEND DISTRIBUTION POLICY
Introduction: i. To the BO account;
In compliance with the Directives No. BSEC/CMRRCD/2021-386/03 ii. To the suspense BO Account for undistributed or
of Bangladesh Securities and Exchange Commission (BSEC) unclaimed stock dividend/bonus shares. A new
dated January 14, 2021; Social Islami Bank Limited formulated Suspense BO Account has been opened in every year for
a policy known as “Dividend Distribution Policy”. The highlights of the respective year’s suspense shares;
the said policy are given below:
iii. The bonus dividend shall be transferred to the suspense
Purpose: BO account if BO account is not available or BO account
The purpose of the policy is to comply with the Directives of is inactive;;
Bangladesh Securities and Exchange Commission (BSEC).The
parameters set out in the policy are applicable for distribution iv. The sale proceeds of fractional bonus dividend shall be
of dividend. paid off as per circular of BSEC or Bangladesh Bank or
other regulatory authority from time to time,
Dividend Recommendation and Approval process:
Dividend to be recommended and approved as per applicable Unpaid or unclaimed of unsettled cash dividend:
Acts and regulatory directives issued from time to time. Unpaid or unclaimed of unsettled cash dividends shall be
settled as per instructions of BSEC or Bangladesh Bank or
Entitlement of Dividend: other regulatory authority from time to time.
Shareholders whose names shall appear in the Members
Register of the Company or in the Depository Register of Unpaid or unclaimed of unsettled stock dividend:
CDBL on the ‘Record Date’ of the respective year’s AGM will Unpaid or unclaimed of unsettled stock dividends shall be
receive entitled dividend. settled as per instructions of BSEC or Bangladesh Bank or
other regulatory authority from time to time.
Process of Distribution of Cah Dividend:
Cash dividend shall be paid directly to the bank account within Tax matters:
30 (thirty) days from the date of approval by the Shareholders Tax will be deducted at source as per applicable tax laws.
in the AGM subject to comply of circulars/directives of BSEC Submission of Dividend Distribution Compliance Report:
or Bangladesh Bank or other regulatory authority from time In-compliance with the Dhaka Stock Exchange (Listing)
to time. Regulation-2015 and Chittagong Stock Exchange (Listing)
i. Through Bangladesh Electronic Funds Transfer Network Regulation-2015 and other regulatory requirement Social
(BEFTN); Islami Bank Limited has been submitted a Dividend
Distribution Compliance Report to BSEC, DSE and CSE within
ii. Through bank transfer or any electronic payment system 7 days from the date of completion of dividend distribution
as recognized by the Bangladesh Bank (if not possible of the concerned year’s. This report shall submit to BSEC,
through BEFTIN); DSE and CSE in a specified format issued by the regulator (s)
iii. In case of margin loan and claim by loan provider, through within stipulated time.
the Consolidated Customer’s Bank Account (CCBA); Amendments / Modifications:
iv. To the separate bank account of the merchant Banker or To the extent any change/amendment is required in terms of
portfolio manager through BEFTN; any applicable law or change in regulations, the regulations
v. Through the security custodian following Foreign would prevail over the policy and the provisions in the policy
Exchange Regulation for non-resident sponsor, director, would be modified in due course to make it consistent with the
shareholder, unit holder or foreign portfolio investor (FPI); law of the land. Such amended policy shall be placed before
the Board for approval.
vi. Through issuance of Cash Dividend warrant and send it
through post in case of non-availability of information of Disclosure Policy:
the shareholder or unit holder. The Dividend Distribution Policy has available on the Bank’s
website and annexed in the Bank’s Annual Report-2020.
vii. Amount of declared cash dividend payable for the
concerned year/period shall be kept in a separate bank Summary of Unclaimed Dividend:
account as per circular of BSEC or Bangladesh Bank or As of 31.12.2020 total amount of unclaimed dividend is
other regulatory authority from time to time. Tk.6,21,02,641.91 laying with respective year’s Bank Accounts.
Manner and procedure of stock dividend distribution:

The stock dividend shall be credited within 30 (thirty) days of
approval subject to the clearance of the regulatory requirement
[if any from Bangladesh Bank, exchange(s) and the Central
Depository Bangladesh Limited (CDBL)]:

REPORT ON RISK
MANAGEMENT
Risk is defined as uncertainties resulting in adverse outcome,

adverse in relation to planned objective or expectations. In the
financial arena, enterprise risks can be broadly categorized
as credit risk, operational risk, market risk and other risk. Risk
management is the deliberate acceptance of risk for profit-making.
It requires informed decisions on the tradeoff between risk and
reward, and uses various financial and other tools to maximize
risk-adjusted returns within pre-established limits. Risk-taking is
an inherent element of the banking business and, indeed, profits
are in part the reward for successful risk taking in business. On
the other hand, excessive and poorly managed risk can lead to
losses and thus endanger the safety of a bank’s depositors. The
objective of risk management system is to identify, assess, record
and actively manage any internal or external risks that could pose
a threat to the attainment of the Bank’s corporate goals.

In this section we shall summarize the risk management 1.2 Board Risk Management Committee (BRMC)
framework, risk mitigation methodology and disclosure
on risk reporting of Social Islami Bank Limited practiced In compliance with the Sub-section (3) of Section 15Kha
internally and for regulatory purpose. of the Bank Company (Amended) Act, 2013 and the
BRPD Circular No. 11 dated 27 October 2013 issued by
Risk Management Framework Bangladesh Bank, “Board Risk Management Committee”
has been formed. The Terms of Reference (ToR) of the
A risk management framework is a set of components that Committee is determined as per the guidelines/ circulars
provide the foundations and organizational arrangements of Bangladesh Bank issued and in-force from time to time.
for designing, implementing, monitoring, reviewing and As per the Terms of Reference (ToR), four (4) meetings
continually improving risk management throughout the of Risk Management Committee of the Board were held
organization. during 2020.
1. ORGANIZATIONAL STRUCTURE: Role of Board Risk Management Committee is as follows:
1.1 Board of Directors a. Formulating and reviewing (at least annually) risk
management policies and strategies for sound risk
The board of directors of the bank gives utmost importance management;
on sound risk management practices. They take every
possible initiative to keep various risks (credit, market, b. Monitoring implementation of risk management
liquidity, operational risks etc.) within tolerable level. For policies & process to ensure effective prevention and
this purpose the board plays the following role:- control measures;
a. Establish organizational structure for enterprise risk c. Ensuring construction of adequate organizational
management within the bank and ensure that top structure for managing risks within the bank;
management as well as staffs responsible for risk
management possess sound expertise and knowledge d. Supervising the activities of Executive Risk
to accomplish the risk management function properly; Management Committee (ERMC);
b. Assign sufficient authority and responsibility to risk e. Ensuring compliance of BB instructions regarding
management related officials; implementation of core risk management;
c. Ensure uninterrupted information flow to RMD for f. Ensuring formulation and review of risk appetite,
sound risk management; limits and recommending these to Board of Directors
for their review and approval;
d. Continuously monitor the bank’s performance and
overall risk profile through reviewing various reports; g. Approving adequate record keeping & reporting
system and ensuring its proper use;
e. Ensure the formulation, review (at least annually) and
implementation of appropriate policies, plans and h. Holding at least 4 meetings in a year (preferably
procedures for risk management; one meeting in every quarter) and more if deemed
necessary;
f. Define and reviewing the risk appetite, risk tolerance,
limit etc. in line with strategic planning; i. Analyzing all existing and probable risk issues in
the meeting, taking appropriate decisions for risk
g. Make sure maintenance of adequate capital and mitigation, incorporating the same in the meeting
provision to absorb losses resulting from risk; minutes and ensuring follow up of the decisions for
proper implementation;
h. Ensure that internal audit reviews the credit operations,
foreign exchange operations and securities j. Submitting proposal, suggestions & summary of
portfolio management functions etc. to assess the BRMC meetings to board of directors at least on
effectiveness of internal control system; quarterly basis;
i. Monitor the function of Board Risk Management k. Complying with instructions issued from time to time
Committee. by the regulatory body;
l. Ensuring appropriate knowledge, experience, and

expertise of lower-level managers and staff involved g. Implementing the decisions of BRMC and board
in risk management; meetings regarding risk issues;
m. Ensuring sufficient & efficient staff resources for RMD; h. Assessing requirement of adequate capital in line with
the risk exposures and ensuring maintenance of the
n. Establishing standards of ethics and integrity for staff same through persuading senior management and
and enforcing these standards; board;
o. Assessing overall effectiveness of risk management i. Determining risk appetite, limits in line with strategic
functions on yearly basis. planning through threadbare discussions among the
members;
1.3 Executive Risk Management Committee (ERMC):
j. Contributing to formulation of risk policies for
For smooth functioning of risk management activities
business units;
of the Bank, a Board level and a Management level Risk
Management Committee are parallelly working in the Bank. k. Handling “critical risks” (risks that require follow-up
The Management level Risk Management Committee is and further reporting);
headed by the Chief Risk Officer of the Bank and formed
as per the TOR of Bangladesh Bank and conduct minimum l. Following up reviews and reports from BB and
one monthly meeting to discuss the main agenda of the informing BRMC the issues affecting the bank’s
meeting- ‘Monthly Risk Management Report (MRMR)’ which operation.
is specially designed by Bangladesh Bank and contains
various analysis and information that covers a wide m. Ensuring arrangement of Annual Risk Conference in
areas of the Bank’s credit risk, market risk, operation risk the bank.
including ‘six core risks’. As per regulations of Bangladesh
1.4 Risk Management Division:
Bank, this committee analyses all the information
contained in MRMR and submit it to BRMC for approval As per instruction of Bangladesh Bank “Risk Management
to submit the report to Bangladesh Bank and Bangladesh Unit” of the Bank was restructured as a fully functional
Bank monitors and instructs the bank on any particular risk division named as “Risk Management Division” duly
issue of the report. Apart from MRMR, Comprehensive Risk approved by the board of directors of the bank in 285th
Management Report (CRMR) is prepared and placed to this board meeting held on 12.03.2013 for smooth operation
committee on half yearly basis. Both MRMR and CRMR are of management risk issues. The division has been staffed
also submitted to the board risk management committee with some experienced officials headed by the Chief
for their review and necessary guidance. Risk Officer (CRO). The division works with the capital
management issues and risk management activities of the
Functions of the committee are as under:
bank as per the guideline of Bangladesh Bank, Executive
a. Identifying, measuring and managing bank’s existing Risk Management Committee and Board Risk Management
and potential risks through detailed risk analysis; Committee. As per Risk Management Guideline for Banks
of Bangladesh Bank, 6 desks/units have been formed
b. Holding meeting at least once in a month based on within Risk Management Division as follows -
the findings of risk reports and taking appropriate
decisions to minimize/control risks; 1) Credit Risk Related Desk
2) Market Risk Related Desk
c. Ensuring incorporation of all the decisions in the 3) Liquidity Risk Related Desk
meeting minutes with proper dissemination of 4) Operational Risk Related Desk
responsibilities to concerned divisions/departments; 5) Risk Research and policy development Desk and
6) Basel Implementation Unit
d. Minimizing/controlling risks through ensuring proper
implementation of the decisions; The Risk Management Division manages and measure
risks on the basis of the bank’s approved risk parameters
e. Reviewing risks involved in new products and independently in line with regulatory requirements. The
activities and ensuring that the risks can be measured, role of RMD is described as follows:
monitored, and controlled adequately;
• Collecting and analyzing data/information
f. Submitting proposals, suggestions & summary of for identifying risks and making appropriate
ERMC meetings to CEO and BRMC on regular basis; recommendations for risk mitigation;

• Preparing risk management reports, arranging comprehensive risk management policies and
monthly meeting of ERMC and preparing meeting procedures with the approval of the board;
minutes, disseminating the decisions to the concerned
department/divisions,monitoring and follow up of • Monitoring concerned departments in formulating
implementation status; and reviewing related risk management policies and
procedures;
• Ensuring timely submission of risk management
reports, meeting minutes, compliance report and • Monitoring compliance of irregularities found in core
other documents to BB; risk inspection reports of BB;
• Assisting BRMC/ERMC by providing risk issues that • Adopting proper financial protection measures
are needed to be addressed; through risk transfer, risk avoidance, and risk retention
programs;
• Designing bank’s overall risk management strategy;
• Taking appropriate steps to control or mitigate risk
• Ensuring significant contribution in establishing exposures and ensure reporting the same to senior
sophisticated risk management infrastructure with a management and BRMC.
sufficiently robust data-base, data architecture and
information technology; 2. Risk Management Process:
• Conducting, developing and overseeing Stress Testing Risk Management is an iterative process that, with each
activity; cycle, can contribute progressively to organizational
improvement by providing management with a greater
• Utilizing the Stress Test result and scenario analysis insight into risks and their impact. It is a series of multi-
to better understand potential risk exposures under a steps that, when undertaken in sequence, enable continual
variety of adverse circumstances; improvement in decision-making.
• Developing and testing different models (such as VaR, Steps of Risk Management Process in a Banking
HHI index, Collection scoring, Vintage curve etc.), and Organization:
observe their use for measuring and monitoring risks;
Step 1 – Communicate and Consult
• Assisting senior management in formulating strategic Step 2 – Establish the context
planning considering bank’s risk exposures and Step 3 – Identify the risks
industry as a whole; Step 4 – Analyze the risks
Step 5 – Evaluate the risks
• Supporting the board, BRMC and ERMC in formulation, Step 6 – Treat the risks
review and approval of the enterprise wide risk Step 7 – Monitor the risks
governance framework which includes the bank’s risk
culture, risk appetite, risk limits, and MAT; The relation among the steps can be visualized as under:
• Monitoring on ongoing basis the risk-taking activities
and risk exposures in line with the board approved
Establish the Contest
risk appetite, risk limit and corresponding capital or
liquidity needs (i.e. capital planning)
Communicate and Consult
• Taking initiatives for interim review of risk appetites on

Monitor and Review
Identify Risks
request of other related departments and informing
the board of directors and BRMC time to time about
Analyse Risks
the status of risk exposures as compared to appetite;
• Establishing an early warning or trigger system for Evaluate Risks

breaches of the bank’s risk appetite or limits;
• Communicating views of the board and senior

Treat of Risks
management throughout the bank;
• Taking initiatives for establishing enterprise/

Social Islami Bank Limited also follows the Three (3) Lines Avoid
of Defense (LoD) approach of modern risk management 5
Control
Transfer
for the Bank-wide comprehensive risk management. Three
Probability of Occurance
(3) LoD of SIBL is as under: Avoid
Control
4 Transfer
First Line of defense – Business and Operational Segment/
Units: includes those functional divisions/ branches/ Watch
3
units/segments who own the risks associated with their Assume
operational area/portfolio and primarily responsible for

managing risks under the respective regulatory directives 2
for day-to-day affairs of operations/ business of banks.
Adequate managerial and supervisory controls have been
in place to ensure compliance and to highlight control 1
breakdown, inadequate processes, and unexpected events.
12 3 45
Second Line of defense - Risk Management division Consequence (Amount of Loss)
and other Back-Offices: includes those divisions/units/ Fig: High Level Risk Management Strategy of SIBL
segments of the operations who are responsible for
managing risk and ensuring the compliance functions to These options are based on the assessed combination
help build and/or monitor the first line-of-defense controls. of the probability of occurrence and severity of the
Top of the all functional divisions/units, Risk Management consequence for an identified risk. These guidelines are
Division (RMD) is entrusted to play a pivotal role for bank- appropriate for many, but not all, projects and programs.
wide risk management in coordination with all concerned
of the Bank. Risk Wise Mitigation Methodology is described as
under:
Third Line of defense – Internal Control & Compliance:
1. Credit Risk:
Internal auditors provide the Board/Senior Management
with comprehensive assurance based on the highest level Credit risk arises from the potential that a bank’s borrower
of independence and objectivity within the organization. will fail to meet its obligations in accordance with agreed
Internal audit provides assurance on the effectiveness terms. Credit risk also refers the risk of negative effects
of governance, risk management, and internal controls, on the financial result and capital of the bank caused
including the manner in which the first and second lines of by borrower’s default on its obligations to the bank or
defense achieve risk management and control objectives. downgrade in the credit rating of the borrower.
RISK MITIGATION METHODOLOGY Mitigation measures of credit risk:
Risk Mitigation is the process by which an organization • Bank strictly follows specific policies, standard for
introduces specific measures to minimize or eliminate granting credit by way of evaluating borrower.
unacceptable risks associated with its operations. Risk
mitigation measures can be directed towards reducing • The bank has divided the responsibilities of its officers
the severity of risk consequences, reducing the probability or executives involved in credit-related activities. To
of the risk materializing, or reducing the organizations ensure operational transparency during the credit
exposure to the risk. The risk mitigation step involves appraisal process, the following teams have been
development of mitigation plans designed to manage, established
eliminate, or reduce risk to an acceptable level. Once a » Credit Approval
plan is implemented, it is continually monitored to assess
its efficacy with the intent of revising the course-of-action » Credit Administration Department
if needed.
» Recovery Unit and Special Asset Management
General guidelines for applying risk mitigation handling
options are shown in Figure below. » Internal credit rating assessment
» External credit rating assessment by ECAI

• Analysis of specific borrower repayment capacity- limits to the Head of Treasury who, in turn, allocates
review of financial statements by way of analysis limits to individual dealers.
five key financial indicators- Balance Sheet, Income
Statement, Net worth and Fixed Assets reconciliation, • Stop-loss Limit- Every dealer is assigned a stop-loss
Key ratios and Cash flows statements limit to restrict intuition-driven trades. This is in line
with the organization’s portfolio and risk appetite.
• Credit facilities are allowed after consideration of Limits are also set for individual deals and dealer
absolute due diligence portfolio positions. Stop-loss limits to the Head of
Business or CEO and the Head of Treasury are set by
• Inherent risk in credit proposal are being identified and the Board and in turn, the Head of Treasury allocates
mitigation steps are taken individual limits to the dealers.
• Collateral is properly valued and verified by concerned • After-hours and Off-premises Dealings- After-hours
officer in periodically basis and off-premises dealings are strictly prohibited. The
Head of Treasury, with the approval of the Head of
• Risk grading is being done in line with the Bangladesh
Business or CEO, might engage in after-hours and/or
Bank guideline and bank’s own policy
off-premises dealings for taking or covering positions
• Credit delegations are specified for new/fresh limit, on a case-by-case basis.
renewal or enhancement of limit, consumer/ retail
• Valuation- The Treasury back-office evaluates all
loan, personal loan etc.
outstanding positions at current market rates (mark-
• Adequate provision against investment has been to-market) to determine their market value on a daily
maintained basis. The back-office also gathers market rates from
independent sources, i.e. other than the dealers of the
• Adequate capital has been maintained for credit risk same organization(s) to avoid any conflict of interest
under Basel III framework. with reporting to the line manager. This exercise
provides information regarding the profitability or loss
2. Market Risk: of outstanding contracts.
Market risk is the risk of losses in positions arising from • Market trend of profit rate is analyzed to make proper
movements in market prices. It is the risk of potential losses decision about profit rate determination of various
in the on-balance sheet and off-balance sheet positions of deposits and investment product of the bank which is
a bank, steams from adverse movements in market rates monthly discussed in the ALCO meeting.
or prices such as interest rates, foreign exchange rates,
equity prices, credit spreads and/or commodity prices. • Adequate capital is maintained against market risk
under RBCA guideline of Bangladesh Bank.
2.1 Foreign Exchange Risk is a financial risk that exists
when a financial transaction is denominated in a currency • Scenario analysis for profit rate risk is carried on
other than that of the base currency of the company. through simple gap analysis and duration gap analysis.
2.2 Equity Price Risk is the risk that arises from security • Risk appetite is outlined on different indicator of
price volatility – the risk of a decline in the value of a market risk.
security or a portfolio. Equity price risk can be either
systematic or unsystematic risk. 3. Operational Risk
2.3 Profit Rate Risk is the probability of a decline in the Operational Risk refers to the risk of loss resulting from
value of an asset resulting from unexpected fluctuations inadequate or failed internal process, people and system
in interest rates. or from external events. This definition includes legal risk
but excludes strategic and reputational risk. Unlike other
Mitigation measures of market risk: risk as faced by the bank, the operational risk is inherent in
most of the process and operations of the bank and cannot
• Limits -Foreign exchange dealing is done within the be separated from other risks.
limits authorized by the Board to the CEO or Head
of Treasury. Dealing limits are set according to the
bank’s own requirements, market conditions, and the
counterparty. The CEO usually delegates the setting of

Mitigation measures of operational risk: Mitigation measures of liquidity risk:
• Standard operating procedure is followed to conduct • Bank’s have following liquidity monitoring tools
day to day activities of the bank. Bank has well
articulated operation manual, internal control and » Wholesale Borrowing and Funding Guidelines
compliance manual, anti money laundering and
» Liquidity Contingency Plan
terrorist financing manual, accounting manual and
ICT manual etc. to describe the standard operating » Management Action Trigger
procedure.
• Bank follows Bangladesh Bank’s guideline on CRR,
• Internal audit is conducted on different business and SLR, LCR and NSFR
non-business on periodic basis. Risk based audit has
been established. • Risk appetite is outlined on different indicator of
liquidity risk.
• Adequate capital is maintained against operational • Liquidity position is reviewed in the monthly ALCO
risk under RBCA guideline of Bangladesh Bank. and ERMC meeting and appropriate decision is
taken based on the market trend. Following liquidity
• Risk appetite is outlined on different indicator of indicators are used:
operation risk.
» Advance-deposit ratio
• External auditors regularly provide unbiased
» Wholesale borrowing limit utilization
recommendations on the strengths or weaknesses
of the bank’s internal control system. They » Maximum cumulative outflow (MCO)
examine records and transactions and evaluate the
accounting policy, disclosure policy and methods of » Liquidity coverage ratio (LCR)
financial estimation. This allows the Board and the
management to independently view the bank’s overall » Net stable funding ratio (NSFR)
control system. Along with the periodic Bangladesh
» Structural liquidity gap analysis
Bank audit, other external auditors conduct regular
audits to ascertain control lapses within the system. » Liquid asset to short-term deposit
4. Liquidity Risk » Liquid asset to short-term liability
» Cash Reserve Ration

Liquidity risk is the potential for loss to an institution
arising from either its inability to meet its obligations » Statutory Liquidity Ration
as they fall due or to fund increases in assets without
incurring unacceptable cost or losses. An institution short DISCLOSURE OF RISK REPORTING
of liquidity may have to undertake transaction at heavy
cost resulting in a loss of earning or in worst case scenario; Risk reporting is an essential part of Risk Management
the liquidity risk could result in bankruptcy. Liquidity risk System of any organization. In previous section of
may be categorized as follows: Risk Management Framework, we have depicted
Communication as the integral part of risk management
a) Funding liquidity risk: risk generates when bank will process. Communication part is facilitated by the reporting
be unable to meet its current and future cash flow and system. Social Islami Bank Limited established a strong
collateral needs without affecting its daily operations or its risk reporting in line with regulatory requirement and for
financial condition. internal analysis.
At SIBL, risk management reports include disclosure

b) Market liquidity risk: risk generate when bank cannot requirements under Basel-III and reporting regulations
easily offset or sell a position without incurring a loss adhering to risk management guidelines. Risk reporting
because of inadequate aids the bank considerably by increasing the quality of the
decisions made, and by ensuring the timely implementation
thereof.

Risk Reporting
Following risk reporting is performed by Social Islami Bank Limited. All reporting has been sent to Bangladesh Bank and
other stakeholders on timely basis. The summary is presented in presented in the table:
Frequency
Compliance
SL Name of the reporting Description of the Reporting of the
Status
Report
Risk appetite is the level and type of risk a bank is able and
willing to assume in its exposures and business activities,
given its business objectives and obligations to stakeholders
Risk Appetite, Risk Limit
(depositors, creditors, shareholders, borrowers, regulators).
1 and Risk Tolerance Yearly Complied
Risk appetite is generally expressed through both quantitative
Statement
and qualitative means and should consider extreme conditions,
events, and outcomes. It is stated in terms of the potential
impact on profitability, capital and liquidity.
Monthly risk management report (MRMR) is prepared on monthly
basis for Bangladesh Bank and internal management. Following
issues are included in the monthly risk management report:
a. Capital adequacy
b. Credit risk
c. Off-shore banking operations
d. Market risk
Monthly Risk Management
2 e. Information about profitability Monthly Complied
Report
f. Liquidity risk
g. Operational risk
h. Audit compliance
i. Reputational risk
j. Money laundering risk
k. Compliance of risk management
l. Performance of Board of Directors
Comprehensive risk management report (CRMR) is prepared on
half yearly basis for Bangladesh Bank and internal management.
In comprehensive risk management report, a large amount
of data is captured for identification and analysis of risks.
Following issues are included in the half yearly comprehensive
risk management report:
• Global Economic Outlook
• Bangladesh Economy
Comprehensive Risk • Summary of the activities of Risk Management Committee at the board level
3 Half Yearly Complied
Management Report • Credit Risks Analysis
• Market Risk
• Liquidity Risk
• Operational Risk
• Reputational Risk
• Core Risk Management
• Compliance Risk
• Environmental Risk Management and Other information
• Money Laundering Risk
This metric represents an assessment to measure the adequacy
of the bank’s capital against its risk exposure. This ratio is
calculated and reported in accordance with the risk based
capital adequacy guidelines of Bangladesh Bank. For calculating
Capital to Risk-Weighted
4 risk weighted asset following risks are considered: Quarterly Complied
Asset Ratio
a. Credit risk: Standardized method is used to measure credit risk
b. Market risk: Standardized method is used to measure credit risk
c. Operational risk: Basic indicator method is used to measure
operational risk.

Frequency
Compliance
SL Name of the reporting Description of the Reporting of the
Status
Report
Internal Capital Adequacy Assessment Process (ICAAP)
reporting provides a measure of the bank’s adequate capital
requirement against its entire risk profile. Apart from credit risk,
market risk and operational risk additional 10 risk is considered
for calculating adequate capital:
a. Residual risk
b. Concentration risk
5 ICAAP reporting c. Profit Risk Rate in Banking Book Yearly Complied
d. Liquidity risk
e. Reputation risk
f. Strategic risk
g. Settlement risk
h. Appraisal of core risk management
i. Environment and climate change risk
j. Other material risks.
The aim of introducing Market discipline is to establish more
transparent and more disciplined financial market so that
stakeholders can assess the position of a bank regarding
holding of assets and to identify the risks relating to the assets
and capital adequacy to meet probable loss of assets.
For this purpose, banks disclose a set of information both

quantitative and qualitative form on its assets, risk exposures,
risk assessment processes. Following issues are disclosed both
Market Discipline qualitative and quantitative form in the report:
6 (Disclosure requirement • Scope of application Yearly Complied
under Pillar III of Basel III) • Capital structure
• Capital adequacy
• Credit Risk
• Equities: disclosures for banking book positions
• Interest rate risk in the banking book (IRRBB)
• Market risk
• Operational risk
• Leverage Ratio
• Liquidity Ratio
• Remuneration
Stress testing presents the effects of several assumptions
applied to measure the capital base level in stressed scenarios.
SIBL carries out stress testing on a regular basis in order to
judge the sensitivity and stability of its capital base. Following
issues are considered for minor, moderate and major level shock
while conducting stress testing:
• Increase in NPLs in two particular sectors
7 Stress testing Quarterly Complied
• Negative shift in NPL categories
• Increase in NPLs due to default of a large borrower
• Increase in NPLs
• Equity price fluctuation
• Foreign exchange rate fluctuation
• Decrease in FSV in collateral
• Changes in interest rates

MARKET DISCIPLINE
Disclosure on Risk Based Capital Adequacy under
Pillar-III of Basel III for the year 2020
A) Scope of Application
Qualitative Disclosure
(a) The name of the top corporate entity in the group to Social Islami Bank Limited
which this guidelines applies
(b) An outline of difference in the basis of consolidation The quantitative disclosures are made on the basis of both solo
for accounting and regulatory purposes, with a brief & consolidated basis. SIBL has two subsidiaries and an offshore
description of the entities within the group (i) that banking unit; i) SIBL Securities Ltd & ii) SIBL Investment Ltd.
are fully consolidated;(ii) that are given a deduction Both solo & consolidated financial statements have been
treatment; and (iii) that are neither consolidated nor prepared under applicable financial reporting standard & related
deducted (e.g. where the investment is risk-weighted). instructions/ circulars issued by Bangladesh Bank from time
to time. The assets, liabilities, revenues & expenses of the
Subsidiaries are combined with the parent company (SIBL) on
consolidated basis. So assets of the subsidiaries & offshore
banking unit are risk weighted and equities of the subsidiaries
are crossed out with the investment of SIBL while consolidating.
c) Any restrictions, or other major impediment, on Not applicable
transfer of funds or regulatory capital within the group.
Quantitative Disclosures
d) The aggregate amount of capital deficiencies in all Not applicable
subsidiaries not included in the consolidation that are
deducted and name(s) of such subsidiaries.

B) Capital Structure
Qualitative Disclosures
a) Summary information on the terms and conditions As per Bangladesh Bank BASEL-III guidelines; Tier I capital is
of the main features of all capital instruments, divided into:
especially in the case of capital instruments eligible
for inclusion in Tier I (CET-1, AT-1) and Tier 2. a. Common Equity Tier I (CET-1) Capital
b. Additional Tier I (AT-1) Capital
a) Common Equity Tier-I capital of the Bank consist of -
Paid up capital: Issued, subscribed and fully paid up share

capital of the Bank.
Statutory reserve: As per Section 24 of the Bank Company Act,

1991, an amount equivalent to 20% of the profit before taxes
for each year of the Bank has been transferred to the Statutory
Reserve Fund.
Retained earnings: Amount of profit retained with the banking

company after meeting up all expenses, provisions and
appropriations.
b) Additional Tier-I capital:
Instruments issued by the banks that meet the qualifying

criteria for AT1: Issued, subscribed and fully paid perpetual
subordinated debt/ bond, or other instrument if any which meet
the qualifying criteria for AT1 as stipulated in guidelines on Risk
Based Capital Adequacy.
Tier-II capital consists of –
General Provisions: As per Bangladesh Bank directive, amount

of provision maintained against unclassified loans and off-
balance sheet exposures as of the reporting date has been
considered.
Subordinated debt / Instruments issued by the banks that

meet the qualifying criteria for Tier 2 capital: Outstanding
amount of subordinated debt as of the reporting date.
Assets revaluation reserves: As per Bangladesh Bank’s

instruction, until 31 December 2014, 50% of incremental value
of Bank’s assets has been considered. Revaluation Reserve
(RR) based on the position as of 31 December 2014 will be
deducted @ 20% on yearly basis from 2015 to 2019 under Basel
III guideline.

As on December 31, 2020 (in million taka)
Solo Consolidated
Tier-1 Capital (Going Concern Capital ):
Common Equity Tier-1 (CET-1)
Fully Paid-up Capital 9,380.08 9,380.08
Statutory Reserve 7,030.39 7,030.39
General Reserve 0.00 11.31
Retained Earnings 1,056.77 1,103.50
Total CET-1 17,467.24 17,525.28
Additional Tier-1 Capital (AT-1) 1,500.00 1,500.00
Total Admissible Tier-1 Capital 18,967.24 19,025.28
Tier-2 Capital (Gone Concern Capital) :

General Provision 5,441.65 5,441.65
Subordinated debt 5,960.00 5,960.00
Revaluation Reserves 0.00 0.00
Total Tier-2 Capital 11,401.65 11,401.65
Total Admissible Tier-2 Capital 11,401.65 11,401.65
Total Capital 30,368.90 30,426.94
Regulatory Adjustments: 0.00 0.00
Total Eligible Capital 30,368.90 30,426.94

C) Capital Adequacy
(a) A summary discussion of the bank’s approach to SIBL has adopted standardized approach for computing capital
assess the adequacy of its capital to support current charge for investment (credit) risk & market risk and basic
and future activities. indicator approach for operational risk. Assessment for capital
adequacy is carried out in conjunction with the guidelines and
regulations by Bangladesh Bank from time to time. Assessing
regulatory capital in relation to overall risk exposures of a bank
is an integrated and comprehensive process. SIBL, through
its SRP team, is taking active measures to identify, quantify,
manage and monitor all risks to which the Bank is exposed to.
Assessment of Regulatory Capital will be in alignment with the
findings of these exercises.
As on December 31, 2020 (in million taka)
Particulars
Solo Consolidated
b) Capital requirements for Investment (Credit) Risk 20,305.69 20,159.25
c) Capital requirements for Market Risk 178.28 234.74
d) Capital requirements for Operational Risk 2,018.08 2,035.89
Total capital requirement 22,502.05 22,429.88
e) Capital to Risk Weighted Asset Ratio 13.50% 13.57%
CET-1 Capital Ratio 7.76% 7.81%
Tier-I Capital Ratio 8.43% 8.48%
Tier-II Capital Ratio 5.07% 5.08%
f) Capital Conservation Buffer As per BB roadmap for implementation of Basel III, creation
of Capital Conservation Buffer (CCB) has been made effective
from January, 2016. As on 31.12.2020 SIBL maintained the
capital conservation buffer as presented below:
Particulars Solo Consolidated

Required CCB 2.50% 2.50%
Maintained CCB 2.43% 2.48%
Required CET-1 Ratio including CCB 7.00% 7.00%
Maintained CET-1 Ratio 7.76% 7.81%
Required CRAR Ratio including CCB 12.50% 12.50%
Maintained CRAR Ratio 13.50% 13.57%
g) Available Capital under Pillar 2 Requirement Solo Consolidated

Total Eligible Regulatory Capital [A] 30,368.90 30,426.94
Minimum Capital Requirement under Pillar 1 [B] 22,502.05 22,429.88
Capital Conservation Buffer [C]* 5,625.51 5,607.47
Minimum Capital Requirement including Capital
Conservation Buffer [D=B+C] 28,127.56 28,037.35
Available Capital for Pillar 2 [E=A-D] 2,241.34 2,389.59

D) Investment Risk
a) (i) The General Qualitative disclosures requirement As per Bangladesh Bank guidelines, any investment if not paid within
with respect to investment (credit) Risk, including: the fixed expiry date will be treated as Past due/ Overdue.
Bangladesh Bank issued circulars from time to time for strengthening
Investment discipline. All Investments are categorized into four for the
purpose of classification namely (i) Continuous Investment (ii) Demand
Investment (iii) Fixed Term Investment and (iv) Short-term Agriculture
& Micro Investment.
Classification rules for the above 4 categorized Investments are as
under:
Continuous and Demand Investments are classified as:
‘Sub-Standard’- if it is past due / overdue for 3 months or beyond but
less than 6 months.
‘Doubtful’- if it is past due / overdue for 6 months or beyond but less
than 9 months.
‘Bad/Loss’- if it is past due / overdue for 9 months or beyond from
the date of expiry or claim by the bank or from the date of creation of
forced investment.
Fixed Term Investments are classified as:
(a) In case of any Installment(s) or part of a Fixed Term Investment
amounting up-to Taka 10 lac is not repaid within the due date, the
amount of unpaid installment(s) will be termed as past due / overdue
investment In such a case following classification rules will be applied:
‘Sub-Standard’- if the amount of past due/overdue installment(s) is
equal or more than the amount of installment(s) due within 6 months;
the entire Investment amount will be classified as ‘Sub-Standard’.
‘Doubtful’- if the amount of past due/overdue installment(s) is equal or
more than the amount of installment(s) due within 9 months, the entire
Investment amount will be classified as ‘Doubtful’.
‘Bad/Loss’- if the amount of past due/overdue installment(s) is equal
or more than the amount of installment(s) due within 12 months, the
entire Investment amount will be classified as ‘Bad/loss’.
(b) In case of any Installment(s) or part of a Fixed Term Investment
amounting more than Taka 10 lac is not repaid within the due date, the
amount of unpaid installment(s) will be termed as past due / overdue
investment In such a case following classification rules will be applied:
‘Sub-Standard’- if the amount of past due/overdue installment(s) is
equal or more than the amount of installment(s) due within 3 months;
the entire Investment amount will be classified as ‘Sub-Standard’.
‘Doubtful’- if the amount of past due/overdue installment(s) is equal or
more than the amount of installment(s) due within 6 months; the entire
Investment amount will be classified as ‘Doubtful’.
‘Bad/Loss’- if the amount of past due/overdue installment(s) is equal or
more than the amount of installment(s) due within 9 months, the entire
Investment amount will be classified as ‘Bad/Loss’.
Short-term Agricultural and Micro-Investment are classified as under:
‘Sub-Standard’-If the investment not repaid within the due date as
stipulated in the agreement and if such irregular continues, the
investment will be classified as ‘Sub-Standard’ after a period of 12
month, as ‘Doubtful’ after the period of 36 months and as “Bad/loss’
after a period of 60 months from due date.

Continuous Investment, Demand Investment or Term Investment
which will remain overdue for a period of 2 month or more will be put
into ‘Special Mention Account’.
The rates of provisions are as under:
a) General Provisions-will be maintained:
i. @ 0.25% against all unclassified investments of SME (Small
and Medium Enterprise) as defined by Bangladesh Bank, @
1.00% against all unclassified investments except Consumer
Financing, Investment to Brokerage House-Merchant Banks-
Stock Dealer.
ii. @ 1% on the Off Balance Sheet exposure.
iii. @5% on unclassified investment amount of consumer
financing, @ 1% on unclassified investment amount of House
building finance, @ 1% on unclassified investment amount
of Investment to professionals under consumer financing
for setting up business, Investment to Brokerage House-
Merchant Banks-Stock Dealer.
iv. @ 5% on the outstanding amount of ‘Special Mention Account’.
b) Specific Provisions-will be maintained:
i. Sub-standard: @ 20%
ii. Doubtful: @ 50%
iii. Bad /Loss: @ 100%
c) Provision for Short-term Agricultural and Micro Investment:
i. All Investment except bad/loss: 5%
ii. Bad/Loss: @ 100%
ii) Description of approaches followed for specific and Social Islami Bank Limited has a well defined Investment Risk
general allowances and statistical method; Management Manual duly approved its Board of Directors which is
reviewed annually. Investment risk is one of the major risks faced by
the bank and such investment risk management of the bank has been
designed to address all risks associated with investments.
The Bank has segregated duties of the Officers / Executives involved in
investment related activities. A separate Corporate Division has been
formed at Head Office, which is entrusted with the duties of maintaining
effective relationship with the customer, marketing of Investment
products, exploring new business opportunities etc. Moreover,
investment approval, administration, monitoring and recovery functions
have been segregated. For this purpose, two separate units have been
formed. These are (a) Investment Risk Management Division, (b)
Investment Administration Division. Investment Administration Division
includes investment monitoring unit. Investment Risk Management
Unit is entrusted with the duties of maintaining asset quality, assessing
risk in lending to a particular customer, sanctioning investment (credit),
formulating policy / strategy for lending operation etc.
A thorough assessment is done before sanctioning of investment

facility at Investment Risk Management Unit. The risk assessment
includes borrower risk analysis, financial analysis, industry analysis,
historical performance of the customer, security of the proposed
Investment facility etc. The assessment process starts at Corporate
Division by the Relationship Manager/Officer and ends at Investment
Risk Management Unit. Proposal beyond their delegation are approved
/ declined by the Executive Committee and / or the Management.
In determining single borrower / large investment limit, the Bangladesh

Bank instructions are strictly followed. Internal audit is conducted
on periodical interval to ensure compliance of Bank’s and regulatory
policies. Investments are classified as per Bangladesh Bank’s
guidelines.

b) Total gross Investment/ Credit Risk exposures In million Tk.
broken down by major types of Investment exposures. Type of Investment As on 31.12.2020
Musharaka 221.69
Murabaha 7,087.22
Mudaraba 4,308.10
Bai-Muazzal 1,98,926.80
Hire-Purchase Sirkatul Meelk 62,882.33
Quard 10,565.22
Bai-Salam 905.73
Staff Loan 2,308.72
Ijarah 530.41
Visa Card 758.65
In land Bill Purchase 2,458.10
Foreign Bill Purchased 60.42
Murabaha Bill of Exchange 1,517.48
Baim-Wes bills 8,087.08
Total 3,00,617.94
c) Geographical Distribution of exposures, broken In million Tk.

down in significant areas by major types of investment Name of the Division As on 31.12.2020
(credit) exposure.
Dhaka 2,19,164.57
Chittagong 62,316.54
Sylhet 559.85
Rajshahi 6,443.70
Khulna 6,429.54
Rangpur 2,390.99
Barisal 1,434.31
Mymensingh 1,878.44
Total 3,00,617.94

d) Industry or counterparty type distribution of In million Tk.
exposures, broken down by major types of Investment/ Mode of Investment As on 31.12.2020
credit exposure.
Commercial lending 63,085.99
Export Financing 7,421.29
House Building Investment 4,016.75
Investment against Scheme & MTDR 5,291.70
Small and Medium Enterprises 61,920.98
Micro Investment 678.56
Other Investments 15,673.86
Off-shore Banking Unit 4,308.10
Executives & Staffs of SIBL 2,333.64
Agricultural Industries 3,123.14
Textile & Allied Industries 41,971.32
Food & Allied Industries 13,678.73
Pharmaceutical Industries 1,756.70
Leather, Chemical, Cosmetic etc. 4,215.66
Construction Industries 9,140.14
Cement and Ceramic Industries 5,027.40
Service Industries 16,686.79
Transport and Communication Industries 4,143.13
Other Industries 36,144.08
Total 3,00,617.94
e) Residual contractual maturity break down of the In million Tk.

whole portfolio, broken down by major types of Particulars As on 31.12.2020
investment/credit exposure.
Re-payable on Demand 35,752.99
Not more than 3 months 64,247.34
Over 3 months but not more than 1 year 1,25,502.82
Over 1 year but not more than 5 years 62,813.15
Over 5 years 12,301.65
Total 3,00,617.94

f) By major industry or counterparty type Amount of impaired investments and if available, past due
investments
Particulars As on 31.12.2020
Past Due -
Special Mentioned Account 12,960.00
Substandard 2,123.97
Doubtful 415.59
Bad or Loss 15,661.60
Total 31,161.16
Specific and general provisions:
Specific Provisions 7,812.08

General Provision 5,441.65
Total 13,253.73
Charges for specific allowances and charge-offs during the

period
Provision on classified investment 230.21

Provision on unclassified investment 329.52
Special General Provision-COVID-19 732.16
(As per BRPD Circular letter No.56 dt.
10.12.2020)
Provision on Off-Balance Sheet items (19.84)
Other provisions (note: 36) 30.71
Total 1,302.77
g) Gross Non Performing Assets (NPAs) Gross Non Performing Assets of the bank is 18,201.16 Million
Non Performing assets to outstanding investment Non Performing assets to outstanding investment is 6.05%
Opening balance 17,533.30

Movement of non performing assets Addition 667.86
Reduction -
Closing Balance 18,201.16
Movement of Specific provisions for Non performing Opening Balance 7,595.56

assets
Add: Provision made during the year 239.86
Less: Write-off 23.33
Add: Write back of excess provision
Closing balance 7,812.08

E. Equities: Disclosures for Banking Book Positions
The general Qualitative Disclosures requirement with respect to equity risk, including:
a) Differences between holdings on which capital gains Social Islami Bank limited has two categories of equity
are expected and those taken under other objectives investments namely (i) Quoted Shares- traded in the secondary
including for relationship and strategic reasons ;and market of DSE & CSE like common stock, mutual fund, bond
etc. and (ii) Unquoted Shares- currently not tradable in the
secondary market.
Unquoted shares include shares and securities which are

characterized and categorized as (i) Held to maturity (ii) long
term investment i.e. the Bank does not have any intention to
sell securities immediately or in the near future (iii) Securities
acquired under private placement which will be traded in the
secondary market only after completion of required legal
formalities with the BSEC (Bangladesh Securities & Exchange
Commission), DSE, CSE as per prevailing laws etc.
b) Discussion of important policies covering the Investment in Shares and Securities are for gaining dividend
valuation and accounting of equity holdings in the income or capital gain. Dividend income are recognized in the
banking book, This includes the accounting techniques books of accounts of the bank as and when such dividend is
and valuation methodologies used, including key received or right to receive such dividend is established.
assumptions and practices affecting valuation as well
as significant changes in these practices. Both Quoted shares and unquoted shares are valued at cost
and necessary provisions are maintained if the price falls below
the cost. At the time of calculation of unrealized gain or loss of
quoted shares, sufficient provisions on shares & securities are
made in the books of accounts after netting off the values of
the portfolios but however unrealized gains are not accounted
for. As per Bangladesh bank guidelines, HTF (Held for Trading)
securities are revalued once in a week using marking to market
concept and all such securities are revalued once in a year
according to the Bangladesh bank guidelines.
As on December 31,2020 (In million taka)
Particulars Solo Consolidated
a) Value disclosed in the balance sheet of investments, as
well as the fair value of those investments, for quoted 510.98
securities a comparison to publicly quoted share values 735.45
where the share price is materially different from fair
value.
b) The cumulative realized gains (losses) arising from
- -
sales & liquidations in the reporting period.
c) Total unrealized gains (losses) 42.17 42.17
d) Total latent revaluation gains (losses) - -
Any amounts of the above included in tier-2 capital - -
e) Capital requirements broken down by appropriate equity
groupings, consistent with the bank’s methodology, as
well as the aggregate amounts and the type of equity
investments subject to any supervisory provisions
regarding regulatory capital requirements.
Specific Market Risk 553.15 693.26
General Market Risk 553.15 693.26

F. Profit Rate Risk in the Banking Book
Qualitative Discloser
(a) The general qualitative discloser requirement Profit rate risks in the banking book are taken into account as
including the nature of Profit Rate Risk in the Banking one of the most potential risk. Sources and types of profit rate
Book (PRRBB) and key assumptions, including risks in banking book are (i) Gap or mismatch risk (ii) basic risk
assumptions regarding Investment prepayments and (iii) Net position risk (iv) embedded option risk etc. Changes
behavior of non-maturity deposits, and frequency of in Profit rate in the market may adversely affect the financial
PRRBB measurement matters of a bank such as Current Earnings, Net Investment
Income, Net Worth etc. In the long run, impact on cash flows
of the earning assets is mostly visible which may lead to asset
liability mismatch.
Quantitative Discloser
(b) The increase (decline) in earnings or economic value (or relevant measure used by management) for upward and
downward rate shocks according to management’s method for measuring IRRBB, broken down by currency (as relevant)
Figure in Million
Over 3 Month-Up to 6 Over 6 Months -
Particulars 1-90 Days
Months Up to 1 Year
RSA 1,29,999.50 32,477.90 38,468.60
RSL 1,28,815.40 40,706.30 59,300.70
Gap 1,184.10 -8,228.40 -20,832.10
Cumulative Gap 1,184.10 -7,044.30 -29,060.50
Adjusted Profit Rate Change (PRC) 1.00% 1.00% 1.00%
Earnings Impact (Cum. Gap*PRC) 11.84 -70.44 -290.61
Accumulated Earnings Impact to Date 11.84 -58.60 -361.05

G. Market Risk
Qualitative Discloser
The board of Directors of Social Islami bank Limited approves
a) i) Views of BOD on trading / investment activities policies related to market risks by setting up limits and reviews
of compliance status regularly.
Standardized approach is being used to measure the market
risk. The total capital requirement in respect of market risk is
the aggregate capital requirement calculated for each of the
ii) Method used to measure market risk
risk sub-categories. For each risk category minimum capital
requirement is measured in terms of two separately calculated
capital charges for “specific risk” and “general market risk”.
The Treasury Division manages market risk covering liquidity,
profit rate and foreign exchange risks with oversight from
iii) Market risk management system asset-liability Management Committee (ALCO) comprising
senior executives of the Bank. ALCO is chaired by the Managing
Director. ALCO meets at least once a month.
There are approved limits for Investment deposit ratio, liquid
assets to total assets ratio, maturity mismatch, commitments
for both on-balance sheet and off-balance sheet items and
borrowing from money market and foreign exchange position.
iv) Policies and processes for mitigating market risk The limits are monitored and enforced regularly to protect
the market risks. The exchange rate of the Bank is monitored
regularly and the prevailing market condition, exchange rate,
foreign exchange position and transactions are reviewed to
mitigate foreign exchange risks.
Quantitative Disclosure Figure in Million

As on December 31, 2020
b) The capital requirements for Solo Consolidated
Profit rate risk - -
Equity position risk 110.63 167.09
Foreign exchange risk 67.65 67.65
Commodity risk - -
Total Capital Requirement 178.28 234.74

H. Operational Risk
i) Views of BOD on system to reduce operational risk Operational risk implies the risk of loss of harm resulting from
inadequate or failure of internal processes, people and systems
or from external events. Capability to carry out a large number
of transactions effectively and accurately while complying
with applicable laws and rules constitutes operational risk
management activities of the bank.
The policy for operational risks including internal control &

compliance risk is approved by the board taking into account
relevant guidelines of Bangladesh Bank. Audit Committee of
the Board directly oversees the activities of internal control &
Compliance to protect against all operational risk.
ii) Performance gap of executive and staffs SIBL has a policy to provide competitive package and best
working environment to attract and retain the most talented
people available in the industry. SIBL’s strong brand image plays
an important role in employee motivation. As a result, there is
no significant performance gap.
iii) Potential external events No potential external events are expected to expose the Bank to
significant operational risk.
iv) Policies and process for mitigating operational risk The policy for operational risks including internal control &
compliance risk is approved by the Board taking into account
relevant guidelines of Bangladesh Bank. Policy guidelines on
Risk Based Internal Audit (RBIA) system is in operation. As per
RBIA branches are rated according to their risk grading/ scoring
audit procedure and required frequent audit to the Branches are
operated by the Audit Division. In addition, there is a Vigilance
Cell established in the Bank to reinforce operational risk
management of the Bank and to minimize the same. Bank’s anti-
money laundering activities are headed by (Chief Anti Money
Laundering Compliance Officer) CAMLCO and their activities are
devoted to protect against all money laundering and terrorist
finance related activities. Apart from that, there is adequate
check & balance at every stage of operation, authorities are
properly segregated and there is at least dual control on every
transaction to protect against operational risk.
v)Approach to calculating capital charges for Basic indicator Approach is used for calculating capital charge
operational risk for operational risk as of the reporting date.
As per risk based capital adequacy guidelines, capital charge for operational risk is equivalent to 15% of average annual
gross income of three previous years where negative figures are excluded.
As per risk based capital adequacy guidelines Social Islami bank Limited follows the Basic Indicator Approach for
computing capital charge for operational risk.
As on 31.12.2020 Amount in million Taka

Capital Requirement for Solo Consolidated
Operational Risk 2,018.08 2,035.89

I. Liquidity ratio
In line with the provisions of liquidity risk management under Basel III, Bangladesh Bank on the basis of the relevant
guideline of Bank for International Settlements (BIS) has identified the (i) Liquidity Coverage Ratio (LCR); (ii) Net Stable
Funding Ratio (NSFR); and (iii) Leverage under the purview of ‘Liquidity’ ratio vide BRPD Circular No. 18 dated 21 December
2014 and DOS Circular No. 1 dated 1 January 2015.
a) i) Views of Board of Directors The Board of Directors reviews the liquidity risk of the Bank on quarterly rest while
(BOD) on system to reduce Liquidity reviewing the Quarterly Financial Statements, Stress Testing Report etc. Besides, the
Risk EC of the Board also reviews the liquidity position while reviewing the management
information system (MIS) report on monthly basis.
Upon reviewing the overall liquidity position along with the outlook of SIBL funding
need, investment opportunity, market/industry trend, the Board takes its strategic
decision regarding deposits, funding, investments, loans as well as interest rates
polices etc.
The Board of SIBL always strives to maintain adequate liquidity to meet up Bank’s
overall funding need for the huge retail depositors, borrowers’ requirements as well as
maintain regulatory requirements comfortably.
ii) Methods used to measure The maintenance of Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio
Liquidity Risk (SLR) are considered as the fundamental methods/tools to measure the liquidity
position/risk of SIBL.
However, under Basel III, the following methods and tools are mandated for measuring
the liquidity risk.
a. Liquidity coverage ratio (LCR): Liquidity Coverage Ratio ensures to maintain an
adequate level of stock of high quality liquid assets that can be converted into
cash to meet its liquidity needs (i.e. total net cash outflows) over the next 30
calendar days.
b. Net Stable Funding ratio (NSFR): Net Stable Funding Ratio aims to limit over-
reliance on short-term wholesale funding during times of abundant market
liquidity and encourage better assessment of liquidity risk across all on- and off-
balance
sheet items. The minimum acceptable value of this ratio is 100 percent, indicating
that, available stable funding (ASF) should be at least equal to required stable funding
(RSF).
ASF consists of various kinds of liabilities and capital with percentage weights
attached given their perceived stability.
RSF consists of assets and off-balance sheet items, also with percentage weights
attached given the degree to which they are illiquid or “long-term” and therefore
requires stable funding.
In addition to the above, the following measures have been put in place to monitor the
liquidity risk management position of the Bank on a continued manner:
a. Asset-Liability Maturity Analysis (Liquidity profile);
b. Whole sale borrowing capacity;
c. Maximum Cumulative Outflow (MCO);
Besides the above, the following tools are also used for measuring liquidity risk:
a. Stress Testing (Liquidity Stress);
b. Net open position limit - to monitor the FX funding liquidity risk;

iii) Liquidity risk management system In SIBL, at the management level, the liquidity risk is primarily managed by the Treasury
Division (Front Office) under oversight of ALCO which is headed by the Managing
Director & CEO along with other senior management.
Treasury Division (Front Office) upon reviewing the overall funding requirements on
daily basis sets their strategy to maintain a comfortable/adequate liquidity position
taking into consideration of Bank’s approved investment (credit) deposit ratio, liquid
assets to total assets ratio, asset-liability maturity profile, Bank’s earning/profitability
as well as overall market behavior and sentiment etc.
Apart from the above, Risk Management Division also monitors & measures the
liquidity risk in line with the Basel III liquidity measurement tools, namely, LCR, NSFR,
Leverage Ratio. RMD addresses the key issues and strategies to maintain the Basel III
liquidity ratios to the respective division (s) on regular interval.
iv) Policies and processes for mitigating The Asset-Liability (ALCO) policy leads the process & procedures for mitigation of
Liquidity Risk liquidity risk of SIBL.
ALCO works under specific Terms of References (functions) approved by the Board.
Treasury Division (Front Office) and ALM desk under regular supervision of Top
Management reviews the overall liquidity position of SIBL and takes appropriate
strategy, process in line with the industry position for managing liquidity risk of the
Bank.
i) Liquidity Coverage Ratio (LCR) The Liquidity Coverage Ratio (LCR) under Liquidity Ratios of Basel III of Social Islami
Bank Limited as of 31 December 2020 was as under:
Liquidity Coverage Ratio (LCR) =Stock of High quality liquid assets /Net cash
outflows over the next 30 calendar days
Ratio (%)
particulars
BB requirement SIBL’s position
Liquidity Coverage Ratio (LCR) ≥ 100% 152.77%
ii) Net Stable Funding Ratio (NSFR) The Net Stable Funding Ratio (NSFR) under Liquidity Ratios of Basel III of Social Islami
Bank Limited as of 31 December 2020 was as under:
Net Stable Funding Ratio (NSFR) =Available amount of stable funding (ASF) /
Required amount of stable funding (RSF)
Ratio (%)
particulars
Net Stable Funding Ratio (NSFR) ≥ 100% 128.51%
iii) Stock of High Quality Liquid Assets As stipulated by BB vide DOS Circular Letter No. 1 dated 1 January 2015, the Stock of
(SHQLA) High Quality Liquid Assets (SHQLA) of Social Islami Bank Limited as of 31 December
2020 is Tk. 47,392.00 million.
iv) Total net cash outflows over the next 30 As stipulated by BB vide DOS Circular Letter No. 1 dated 1 January 2015, total net cash
calendar days outflows over the next 30 calendar days of Social Islami Bank Limited based on the
position as of 31 December 2020 is Tk. 31,022.20 million.
v) Available amount of stable funding As stipulated by BB vide DOS Circular Letter No. 1 dated 1 January 2015, the available
amount of stable funding (ASF) of Social Islami Bank Limited as of 31 December 2020
was as under:
Particulars Amount (in million)
Available amount of Stable Funding (ASF) 3,24,337.20
Total 3,24,337.20
vi) Required amount of stable funding As stipulated by BB vide DOS Circular Letter No. 1 dated 1 January 2015, the required
amount of stable funding (RSF) of Social Islami Bank Limited as of 31 December 2020
was as under:
Particulars Amount (in million)
Required amount of Stable Funding (RSF) 2,52,391.10
Total 2,52,391.10

J. Leverage Ratio
i) Views of BOD on system to The Board of Directors of SIBL primarily views on the growth of On and Off balance
reduce excessive leverage sheet exposures commensurate with its expected capital growth so that the excessive
leverage is reduced. Within the
On-balance components, again, the Board emphasizes on the growth of the prime
component i.e. the loans and advances and maintaining good asset quality so as to
maximize the revenue as well as the capacity to generate capital internally (in the form
of retained earnings) to trade-off the excessive leverage supposed to be caused by
asset growth.
At the outset of asset growth, the Board also views the growth of its sources of fund
i.e. deposit growth taking into consideration of projected business growth so that the
investment (credit)-deposit ratio is maintained at a sustainable basis as well as to
reduce the mismatches of asset- liability gap within the tolerable limit to manage the
liquidity risk.
ii) Policies and processes for First and foremost, Bank’s policy is to maintain the Leverage Ratio (Tier 1 capital as
managing excessive on and off- proportion to total adjusted On and Off balance sheet asset) well above the regulatory
balance sheet leverage requirement. To this end, the striking components of balance sheet, namely, the
deposits & borrowing, loans & advances, other liquid assets (treasury bills, bonds, fund
placements) are analyzed on monthly basis.
Measures are taken to contain the growth of overall size of balance sheet (On and Off
balance sheet exposures aggregately) considering short term outlook of the industry
indicators as well as possible growth of equity (Tier 1 capital) of the Bank on quarterly
rest.
With regard to managing the excessive leverage, the regulatory stance through the
monetary policy initiatives i.e. the scope of expected business potential (growth),
estimated money supply, inflation, resulting the estimated overall liquidity of the
industry as well as the Bank in particular is also considered.
iii) Approach for calculating The exposures of balance sheet representing the overall position of the Bank as of the
exposure/Leverage reporting date are calculated and presented in terms of applicable relevant accounting
standards, i.e., IASs (BASs), IFRSs (BFRSs), etc.
The accounting values of assets and liabilities are also presented and measured at
gross. Netting of assets and liabilities are also made where permitted in compliance
with the respective accounting standards and the regulatory instruction.
For calculating “leverage”, SIBL follows the ‘Leverage Ratio’ approach/method as

suggested by Bangladesh Bank
i) Leverage Ratio Leverage Ratio (LR) under Basel III of Social Islami Bank Limited as of 31 December
2020 was as under:
Leverage Ratio (LR) =Tier 1 Capital (after related adjustment)/Total Exposure (after
related deductions)
Ratio (%)
Particulars
Leverage Ratio (LR) > 3% 4.82%
ii) On balance sheet exposure Total On-balance Sheet exposure for calculating Leverage Ratio under Basel III of Social
Islami Bank Limited as of 31 December 2020 is Tk. 3,76,475.70 million.
iii) Off balance sheet exposure Total Off-balance Sheet exposure for calculating Leverage Ratio under Basel III of
Social Islami Bank Limited as of 31 December 2020 is Tk 16,727.51 million.
iv) Total exposure Total Exposures for calculating Leverage Ratio under Basel III of Social Islami Bank
Limited as of 31 December 2020 is Tk. 3,93,203.22 million.

K. Remuneration
a Information relating to the bodies that oversee remuneration
i) Name of the bodies that oversee remuneration Board of Directors of the Bank is actually the main body to
oversee the remuneration. The Board, however, generally
suggest the management to place proposal for revision of
remuneration from time to time.
At the management level, primarily the Human Resources

Division oversees the ‘remuneration’ in line with its HR
management strategy/policy under direct supervision and
guidance of the Board of Directors.
ii) Composition of the main body overseeing Board of Directors of the Bank form a special committee
remuneration consisting of competent directors for reviewing the proposal of
the MANCOM regarding remuneration.
The MANCOM is headed and chaired by the Managing Director&

CEO of the Bank; along with other members of top executives
and the Heads of different functional divisions of Head Office.
iii) Mandate of the main body overseeing The mandate of MANCOM as the main body for overseeing the
remuneration Bank’s remuneration is to review the position of remuneration
and associated matters and recommend to the Board of
Directors for approval of its restructuring, rearrangement and
modification commensurate with the industry best practices as
per requirement.
iv) External consultants whose advice has The Bank has no External Consultant permanently regarding
been sought, the body by which they were ‘remuneration’ and its process. However, experts’ opinion may
commissioned, and in what areas of the have been sought in case to case basis regarding income tax
remuneration process. matter, lawyers’ opinion for settlement of employees’ dues in
case of death, penalty etc. if required, by the management.
v) A description of the scope of the bank’s The Bank does not differentiate the ‘Pay Structure’ and ‘employee
remuneration policy (eg by regions, business benefits’ by regions.
lines), including the extent to which it is applicable
to foreign subsidiaries and branches.
vi) A description of the types of employees We consider the members of the senior management, branch
considered as material risk takers and as senior managers and the employees engaged in different functional
managers, including the number of employees in divisions at Head Office (except the employees involved in
each group. internal control, risk management and compliance) as the
material risk takers.
b Information relating to the design and structure of remuneration processes.

i) An overview of the key features and Remuneration and other associated matters are guided by the Bank’s
objectives of remuneration policy. Service Rule as well as instruction, guidance from the Board from
time to time in line with the industry practice with the objectives
of retention/hiring of experienced, talented workforce focusing on
sustainable growth of the Bank.
ii) Whether the remuneration committee Yes. A committee was formed to review the bank’s remuneration
reviewed the bank’s remuneration policy policy under supervision of board of directors to revise the pay
during the past year, and if so, an overview of scale in line with the industry practice and accordingly bank allowed
any changes that were made. a revised pay scale to the employee of SIBL with effect from
01.02.2017.

iii) A discussion of how the bank ensures The risk and compliance employees are carrying out the activities
that risk and compliance employees independently as per specific terms of references, job allocated to
are remunerated independently of the them.
businesses they oversee.
Regarding remuneration of the risk and compliance employees,
Human Resources Division does not make any difference with other
mainstream/ regular employees and sets the remuneration as per
the prevailing rule of the Bank primarily governed by the employees’
service rule of the Bank.
c Description of the ways in which current and future risks are taken into account in the remuneration processes.
i) An overview of the key risks that the bank The business risk including investment (credit)/default risk,
takes into account when implementing compliance & reputational risk are mostly considered when
remuneration measures. implementing the remuneration measures for each employee/group
of employee. Financial and liquidity risk are also considered.
ii) An overview of the nature and type of the Different set of measures are in practice based on the nature &
key measures used to take account of these type of business lines/segments etc. These measures are primarily
risks, including risks difficult to measure. focused on the business target/goals set for each area of operation,
branch vis-à-vis the actual results achieved as of the reporting date.
The most vital tools & indicators used for measuring the risks are
the asset quality (NPL ratio), Net Interest Margin (NIM), provision
coverage ratio, credit- deposit ratio, cost-income ratio, growth of net
profit, as well the non-financial indicators, namely, the compliance
status with the regulatory norms, instructions has been brought to
all concerned of the Bank from time to time.
While evaluating the performance of each employee annually, all

the financial and non-financial indicators as per pre-determined set
criteria are considered; and accordingly the result of the performance
varies from one to another and thus affect the remuneration as well.
iii) A discussion of the ways in which these While evaluating the performance of each employee annually, all
measures affect remuneration. the financial and non-financial indicators as per pre-determined set
criteria are considered; and accordingly the result of the performance
varies from one to another and thus affect the remuneration as well.
iv) A discussion of how the nature and type Considering industry practice and competitiveness the Board of
of these measures has changed over the Directors of the bank revised pay scale to the employee of SIBL with
past year and reasons for the change, as well effect from 01.02.2017.
as the impact of changes on remuneration
d Description of the ways in which the bank seeks to link performance during a performance measurement period
with levels of remuneration.
i) An overview of main performance metrics The Board sets the Key Performance Indicators (KPIs) while
for bank, top-level business lines and approving the business target/budget for each year for the Bank and
individuals. business lines/segments. The management sets the appropriate
tools, techniques and strategic planning (with due concurrence/
approval of the Board) towards achieving those targets. The most
common KPIs are the achievement of loan, deposit and profit target
with the threshold of NPL ratio, cost-income ratio, cost of fund, yield
on loans, provision coverage ratio, capital to risk weighted asset ratio
(CRAR), ROE, ROA, liquidity position (maintenance of CRR and SLR)
etc.

ii) A discussion of how amounts of individual The remuneration of each employee is paid based on her/his
remuneration are linked to bank-wide and individual performance evaluated as per set criteria. And, accordingly,
individual performance. the aggregate amount of remuneration of the Bank as a whole is
linked/ impacted to the same extent.
iii) A discussion of the measures the bank will The Bank follows remuneration process as per set criteria with no
in general implement to adjust remuneration in general adjustment in the event of weak performance metrics/
in the event that performance metrics are scorecard.
weak. This should include the bank’s criteria
for determining “weak” performance metrics.
e Description of the ways in which the bank seek to adjust remuneration to take account of longer-term
performance.
i) A discussion of the bank’s policy on The Bank pays variable remuneration i.e. annual increment based
deferral and vesting of variable remuneration on the yearly performance rating on cash basis with the monthly
and, if the fraction of variable remuneration pay. While the value of longer term variable part of remuneration i.e.
that is deferred differs across employees or the amount of provident fund, gratuity fund are made provision on
groups of employees, a description of the aggregate/individual employee basis; actual payment is made upon
factors that determine the fraction and their retirement, resignation etc. as the case may be, as per rule.
relative importance.
ii) A discussion of the bank’s policy and
criteria for adjusting deferred remuneration
before vesting and (if permitted by national
law) after vesting through claw back Not Applicable
arrangements.
f Description of the different forms of variable remuneration that the bank utilizes and the rationale for using
these different forms.
i) An overview of the forms of variable The Bank pays variable remuneration on cash basis (i.e. direct credit
remuneration offered (i.e. cash, shares and to the employee Bank account and/or Payment Order/ Cheque), as
share-linked instruments and other forms. A the case may be, as per rule/practice.
description of the elements corresponding to
other forms of variable remuneration (if any)
should be provided.
ii) A discussion of the use of the different The following variable remuneration has been offered by SIBL to its
forms of variable remuneration and, if employees:
the mix of different forms of variable
remuneration differs across employees or Annual Increment Bank provides annual increments based on
groups of employees), a description the performance to the employees with the view of medium to long term
factors that determine the mix and their strategy and adherence to SIBL values.
relative importance.
g Number of meetings held by the main body There were 4 (Four) meetings of the MANCOM held during the year
overseeing remuneration during the financial 2020. All the members of MANCOM are from the core banking area/
year and remuneration paid to its member. operation of the Bank. No additional remuneration was paid to the
members of the MANCOM for attending the meeting except their
regular remuneration.

h i) Number of employees having received The following Number of Employees were received a variable
a variable remuneration award during the remuneration during the year 2020:
financial year. Particulars Number
Number of employees having received a Not Applicable
variable remuneration award during the year
2020
ii) Number and total amount of guaranteed The following number and total amount of Guaranteed bonuses
bonuses awarded during the financial year. awarded during the year 2020:
All employee of SIBL get two festival bonuses.

iii) Number and total amount of sign-on There was no sign-on awards made in 2020.
awards made during the financial year.
iv) Number and total amount of severance There was no severance payment made during the year 2020.
payments made during the financial year.
i i) Total amount of outstanding deferred
remuneration, split into cash, shares and Not Applicable
share-linked instruments and other forms.
ii) Total amount of deferred remuneration
Not Applicable
paid out in the financial year.
J Breakdown of amount of remuneration i) Fixed and variable remuneration paid in 2020 are as follows:
awards for the financial year to show:
Amount in Million Taka
Fixed pay 3,567.61
Variable pay -
Total fixed and variable pay 3,567.61
ii) Deferred and non-deferred (paid during the year).
Not Applicable
iii) Different forms used (cash, shares and share linked instruments,
other forms).Remuneration is paid on cash basis (i.e. direct credit to
the employee Bank account and/or Payment Order/ Cheque), as the
case may be, as per rule/practice.
k Quantitative information about employees’ i) Total amount of outstanding deferred

exposure to implicit (e.g. fluctuations in the remuneration and retained remuneration
Not Applicable
value of shares or performance units) and exposed to ex post explicit and/or implicit
explicit adjustments (e.g. claw backs or adjustments.
similar reversals or downward revaluations ii) Total amount of reductions during
of awards) of deferred remuneration and the financial year due to ex post explicit Not Applicable
retained remuneration: adjustments.
iii) Total amount of reductions during
the financial year due to ex post implicit Not Applicable
adjustments.

“With our diverse portfolio of products, we practically touch every life
in the country some way or the other and this is a responsibility we
take very seriously. Sustainability is therefore woven into our culture,
practices, processes and the products we offer. The Sustainability
Report covers our sustainability strategy, Key Performance
Indicators, our annual and long-term targets and the work we have
done so far.”

About the Report Report Content
We began voluntary reporting on sustainability for the The content of this report has been decided upon by
first time in 2015 with the first report published along with the Sustainability Council and has been developed in
the Annual Report covering the period 1 January 2015 to accordance with our Sustainability framework based on
31 December 2015. Now it starts as a regular effort on the line of economic, social and environmental parameters.
presenting a Sustainability Report.
Data Collection
Report Boundary
All our data is derived from our central database. A quarterly
This report covers only banking operation run by Social reporting cycle is in practice and all related information
Islami Bank office, its branches, SME service centers and is gathered and entered by respective businesses and
other direct networks in Bangladesh. functions while the top level management reviews and
manages the data for Social Islami Bank as a whole.
Employee data includes management and non- Data pertaining to integrity management, employment
management staff. All monetary amounts in this Report practices, sourcing and community investment is compiled
are in BDT, unless otherwise indicated. and monitored by the Sustainability Council members
responsible for each area.
Reporting Period
Contact Us
The report for 2020 has been prepared for a year basis
for the period of January to December 2020. Text and We encourage feedback on our Sustainability Report. If you
statistics in the Report cover sites owned and operated would like to comment on the report or find out more about
wholly by Social Islami Bank during the period 1 January our Sustainability strategy and program, please e-mail us
2020 to 31 December 2020. at: sustainability@sibl-bd.com
Data has mainly been obtained from our financial A soft copy of this report and additional information on our
management reporting systems, corporate HR information business units and products is available on our website
management system etc. at www.sibl-bd.com. If you are unable to access these
resources or need further information, please contact:
90/1 Motijheel C/A, City Center Dhaka-1000.

STAKEHOLDERS’
ENGAGEMENT
“Proactive engagement with our stakeholders is an essential part

of being a responsible company. Sustainability is a shared journey
and to move forward we need to involve our stakeholders in every
step of the way. We try to engage our key stakeholders such as
our shareholders, regulators, suppliers, customers, employees
and the community on a regular basis by listening to their ideas,
concerns and advice.”

Engaging Our Stakeholders
We intend to form tangible relations with our stakeholders. This is why our reporting perception has transitioned from an
operation- oriented approach to a stakeholder-focused one. Such a focus is one of the purposes why we have mapped the
possible effect that we have on various stakeholder groups before conclusions are made.
We engage with our stakeholders in many ways and at many levels, from the queries that reach us via our website to face-
to-face meetings with government officials and regulators, customers, employees, community groups and others. Whilst
focus on certain issues such as access to finance and customer satisfaction have increased over the years, most of the
topics that stakeholders view as significant have remained consistent.
Moving forward, we expect to have better coordinated discussions with our stakeholders. While the concerns of our various
stakeholder groups do not always overlap with each other or with the business objectives of the company, dealing with
such dilemmas is an everyday part of doing business.
Stakeholder Group Their Concern Our Responsibilities

Shareholders and Analysts • Dividends and share value • Generate profits and ensure optimal return on
• Performance and integrity of the investment
Board and management • Proper oversight and control of the Board and
• Public goodwill and reputation of the management
Bank • Bank’s Code of Conduct, management
oversight and response
• Public affairs management
Bangladesh Bank and other • Good corporate governance and • Develop and communicate a framework
regulators business ethics that promotes good governance and ethical
• Legal compliance behavior at all levels
• Support for government policy • Ensure compliance at all times
• Providing timely and accurate information
• Immediate response to queries made by
authorities
• Comply with rules and regulations
Customers • Dealing with SIBL is a positive • Protect the privacy of our customers, including
experience data protection and confidentiality
• nformation provided by the Bank is • Provide a positive customer experience
accurate and reliable • Comply with company values and Code of
• Customers’ privacy is assured Conduct
• Promises to customers are kept
Employees • Health, • Ensure that we properly safeguard those who
• safety and work for us and those who may be affected by
• well being our operations
• Promoting and maintaining an amicable
relationship with all employees
• Shape future leaders Recognize exceptional
performers
• Ensuring all employees have a proper work life
balance
• Investment on Human Resource Information
• Systems
Society • Social Investment • Do our part to improve the quality of life for all
members of society
• Investment on citizens
• Investing in entrepreneurs
• Addressing rural youth
• Empowering women
• Encourage people for saving
Suppliers • Supply chain functions well • Work with suppliers to address issues in the
• Supply chain is sustainable supply chain

SOCIAL RESPONSIBILITY
INITIATIVES (CSR)
Corporate Social Responsibility is an integral part of Social islami

Bank. Through different projects we hope to contribute to the
community, but our main focus is to help the underprivileged
community in Bangladesh. SIBL has always been active in social
responsibility projects since the beginning. SIBL always prioritizes
the Bangladesh Bank CSR Guideline and focus on long-term
programs rather than the short-term ones that have sustainable
impact on the people and society of the country.”

Corporate Social Responsibility of SIBL Financial Inclusion: In the form of financing to Agriculture,
SME, Women Entrepreneur, Renewable Energy, Solar
As part of Corporate Social Responsibility (CSR), welfare Irrigation etc.
activities of Social Islami Bank Limited (SIBL) are being
carried out mainly from- Donation to the individuals, covering: Education, Health,
Disaster Management (Family Rehabilitation), Environment
• Profit of Cash Waqf Fund (Social Utility), Sports, Art & Culture, Others etc.
• Compensation Fund Donation to NGO’s: For supporting such welfare activities
• Doubtful Income and CSR activities under-taken during the year
• Zakat Fund. SIBL has contributed a sum of total Tk. 271.83 million in the
field of Health, Education, Disaster Management (Family
SIBL is a pioneer of Cash Waqf Program which has
Rehabilitation), Sports, Art & Culture, Environment (Social
meanwhile achieved both local & international accreditation
Utility) & Others during year 2020, which are furnished
for its unique welfare approach. Cash Waqf Program of the
hereunder: (Figure in Tk.)
Bank paved the way of doing welfare of mankind in various
sectors such as- Contribution
Sectors
• Family Rehabilitation, in 2020 in 2019
Health 16,91,370.00 29,69,870.50
• Education & Culture, Education 5,21,85,749.00 47,01,300.00
• Health & Sanitation and Disaster Management 10,00,00,000.00 1,00,00,000.00

(Family Rehabilitation)
• Social Utility and others in conformity with Shariah. Sports 50,000.00 1,57,500.00
Art & Culture 0.00 2,76,750.00
Cash Waqf is broadly categorized as-
Environment (Social 11,74,27,175.00 27,91,79,950.00
Utility)
General Cash Waqf : Where the Waqif (Donor) doesn’t
mention the name of beneficiary (may be individual or Others 4,75,845.00 47,250.00
organization) for receiving the profit of Cash Waqf fund, we Total 27,18,30,139.00 29,73,32,620.50
call those General Cash Waqf.
Specific Cash Waqf: In case of Specific Cash Waqf, the

Waqif (Donor) specify the name of specific beneficiary
(may be individual or organization). Profit of General Cash
Waqf A/C are being sent to FAD, HO annually & profit of
Specific Cash Waqf A/C are being sent to the specific
beneficiary as per instruction of the Waqif once annually.
Social Islami Bank Ltd. is extending financial help

to different orphanages, schools, madrashas, social
organizations & individuals who are suffering from fatal
diseases like cancer, kidney failure, and heart diseases etc.
from the fund which are being accumulated from the profit
of Cash Waqf Fund, Compensation Fund, Doubtful Income
and Zakat Fund.
Bangladesh Bank vide DOS Circular No. 01 dated 1 June,

2008 titled “Mainstreaming Corporate Social Responsibility
(CSR) in banks and financial institutions” gave a
comprehensive guideline on CSR.
We have been submitting quarterly CSR report to

Bangladesh Bank as per format provided by them. The
format has following dimensions:

ENVIRONMENT
RELATED INITIATIVES
“Social Islami Bank Limited believes it is important to promote

environment–friendliness in society as a whole through the
financial products and services it offers as part of its core
business based on the knowledge and insight of a global financial
group. From this perspective, SIBL is developing businesses that
contribute to the environment according to the nature of their own
operations.”

Green Banking • To promote green initiatives through advertisement in
print/electronic media
Bangladesh Bank has recognized SIBL as one of the Top Ten
Private Commercial Banks for their contribution to Green • To rationalize use of consumption of paper, water,
Banking activities across the country. We have unified our electricity and utilities
sustainable operations under the “Green Banking Unit”
equipped with permanent employees. The Audit Committee • To reduce Emission of Carbon
of the Board is selected as the High Powered Committee
• To conserve environment
of our Green Banking Unit for reviewing the Green Banking
activities. Our Green Banking Policy Guidelines and Green • To protect air/water pollution.
Office Guide have been circulated to all our employees for
creating awareness on Green Banking activities & providing • To establish green building/project.
instructions about conserving energy, water, saving paper,
etc. Our Green Strategic Plan is enhanced to define our • To enhance the export oriented project by re-financing
strategy in the coming years. SIBL developed its own scheme under Green Transformation Fund.
Environmental Policies, which proves our commitment to
Saving our ‘Mother Planet’ has become the crucial issue
the Environment for a sustainable future. As a Bank we
now-a-days. To save our beloved abode (the earth) from all
play an intermediary role between economic development
types of erosion and pollution we, as global citizens, have
and conservation of the environment. Our Green Banking
some obvious responsibilities to keep our mother planet
activities are on multidimensional areas which include
green remaining in our individual position we belong to.
both in-house Green activities and external green activities
towards supporting Green Economy. In 2019, as part of our
Green Banking initiative SIBL has spent significant amount
for Green establishment, installation of solar panels,
environment friendly brick plant based on HHK (Hybrid
Hoffman Klin) technology etc.
Green Transformation Fund (GTF)

We have provided USD 21065629.81 to export oriented
garments industries by BB Re-Financing Scheme under
Green Transformation Fund (GTF) and SIBL was the 2nd
highest position in the Banking Industry for the year 2020.
Online Banking
SIBL has been one of the pioneers in introducing Online
Banking. SIBL is the 1st Islami Bank, who introduced Online
Banking Service to our clients and it covers all our 168
branches, 115 own ATMs. Clients can also have access to
their accounts through Internet & Mobile Banking. Online
banking system is a great way to reduce wastage of paper.
Our future plan:

SIBL has the plan to focus on the following areas of
operation for promoting Green Initiatives:
• To popularize Online Banking,
• To increase Internet, SMS & Mobile Banking
• To introduce Video Conferencing
• To increase Efforts towards near paperless banking
• To promote Tree Plantation Campaign

ENVIRONMENTAL & SOCIAL
OBLIGATIONS
“We are well aware of the social and environmental obligations

we have to our customers, our staff and our planet. We take
these responsibilities seriously and have implemented a program
of ongoing assessment of working practices, adapting our
operations to meet the following commitments.”

Social Obligations Reducing Energy & Resource Consumption
SIBL actively participate in Corporate Social Responsibility Instruments of Green Banking offered by Cards Division
(CSR) activities of the Bank. During the year SIBL spend include E-Statement, SMS Banking, SMS Alert, Net Banking,
Taka 271.83 million under Health, Education, Sports, E Fund Transfer and Digital Attendance and Paperless
Disaster Management and Environmental programs which Board of Directors meeting, E Mail corresponding, Video
was Taka 297.33 million in 2019. This is a reaffirmation of Conference, Tele Conference, which help reducing printing
the commitment of SIBL towards the society. paper.
Environmental Obligations Sl. No. Instruments

Environmental Performance 1 E-Statement
2 SMS Banking
Energy
3 SMS Alert
Energy Savings 4 Net Banking
Our new Corporate Office, where we have moved during the 5 E Fund Transfer
year 2011 has been designed to utilize maximum usage 6 Digital Attendance
of natural lights, which reduces energy consumption 7 E Mail corresponding
substantially compared to other conventional building.
8 Video Conference
Around a third of the bulbs being used in this office are of
energy savings type. We are saving around 40% electricity 9 Tele Conference
(used for lighting purpose) by using the day light in our 10 Paperless Board of Directors Meeting
Corporate Office. Our electronic mail system has been 11 SIBL NOW Instant Banking
operational since 2005, which is being extensively used
for internal as well as external communication. Electronic
communication substantially reduces paper consumption Water
thereby reduce deforestation.
Reducing Carbon Footprint & Water Usage
Energy Consumption
As part of our commitment for our Green Economy we
Energy Type Million Taka have refinance in Solar Energy, Bio- Gas, LED and Effluent
Treatment Plant & Hybrid Hoffman Kiln (HHK).
Electricity 87.31
Gas - During 2020, SIBL provided Tk. 635.19 million to Bricks
Fuel 40.35 which envisages of setting of a modern, environment
friendly & energy efficient Brick Manufacturing project
Financing Renewable Energy and Carbon Offset Projects utilizing Hybrid Hoffmann Kiln/ Zigzag & Improvement
Technology with a capacity of 120,000 pieces auto bricks
We have installed Solar panels in our 17 branches located per day and Tk. 10.24 to other sector.
at Patherhat, Patkelghata, Akhaura, Dewanhat, Bibirhat,
Shahzadpur, Gobindagonj, Naogaon, Dhamrai, Fenchugonj,
Atorar Dipo, Hajigonj, Chowgacha, Chandaikona, Fakirhat,
Shayedpur and Dupchachia branches. Up to 2020 we have
disbursed Tk. 481.86 million to 17 business entities, which
helps sequestration of Carbon.

INTEGRATED
REPORTING
Social Islami bank limited aims to clearly and concisely tell the
story of the SIBL, how it creates value, its strategy, opportunities
and risks, its business model and governance, and the performance
against its strategic objectives in a way that gives stakeholders a
holistic view of the company and its future.”
Integrated reporting aims to give a holistic view of the organization

by putting all the information related to Our Vision, Mission,
Commitments, and Strategic Objectives. It also includes SIBL
Brand Values, Code of Conducts and ethical principles.
SIBL offers clear, comprehensible and correct information to its

customers within the principle of reciprocal trust during services
and transactions; and provide the customer services in a timely
and complete manner. The bank alwayes shows due diligence
to support all kinds of social and cultural activities in the light of
the principle of observing, aside from the profitability, the social
benefit and respect environment.

SIBL runs with a vision to minimize the poverty level in OUR STRATEGIC OBJECTIVES
Bangladesh. In this regard, the inherent concept and
credence of “Working together for a Caring Society” is • Transformation into a service-oriented technology-
always held high. to carry forward this commitment, the driven profit earning bank.
personnel of SIBL are imbued with the highest degree of • Ensure fast, accurate and best-in-class customer
enthusiasm, zeal and vigor to serve the society. services with customers’ satisfaction.
Mission of the bank is compreashed of- • Balanced and sustainable growth strategy. Optimum
return on shareholders’ equity.
• Establishing three sector banking model
• Introducing innovative Islamic Banking Products.
• Transformation to a service oriented technology
• Attract, motivate and retain high quality human
driven profit-earning bank.
resources.
• Fast, accurate and satisfactory customer service.
• Empowering real poor families and create local
• Balanced & sustainable growth strategy. income opportunities.
• Optimum return on shareholders’ equity. • Providing support for social benefit organizations-by
• Introducing innovation islamic banking products. way of mobilizing funds and social services
• Attract and retain high quality human resources. • To achieve global standards in Islamic Banking
• Empowering real poor families and creating • To invest in the priority sector for the overall economic
localincome opportunities. development
• Providing support for social benefit organizations by • Ensure best CSR (Corporate Social Responsibilities)
way of mobilizing funds and social services. practices
SIBL is commited to shariah, regulators, shareholders, • Ensure Green Banking

nation, customers, employees, other stakeholderand and
environment.
CORE VALUES
HONESTY EFFICIENCY ACCOUNTABILITY
Honest to its customers, Gaining efficiency Accountable to the

employees, regulators, through best use of man stakeholders
shareholders and oth- and machine. and to the society at large.
ers.
TRANSPARENCY INNOVATION SECURITY

Continuous innovative
Transparent in each Gaining efficiency through
idea generations and
and every banking best use of man and
designing of banking
transaction. machine.
products and services.
FLEXIBILITY RELIGIOUSNESS TECHNOLOGY
Service flexibility is one SIBL enhances economic Providing of upgraded

of the most important well being with the bliss technological banking
features of religious ethics services.

SUSTAINABLE HR
DEVELOPMENT
“Human Resource Is The Corner Stone For Accelerated

And Sustained Development Of Any Organization. The Bank
Recognizes The Importance Of Skilled Human Resources For
Overall Growth Of The Bank. The Meritorious And Talented Human
Resources Team Is The Key For Continuous Development Of The
Organization. Superior Human Resources Are An Important Source
Of Competitive Advantage. To Attract Talented Human Resources
Team And To Create Brand Image Bank Have Formulating And
Executing Hr Systems—Hr Policies And Activities—That Produce
The Employee Competencies And Behaviors Which The Bank
Needs To Achieve. The Bank Has Been Trying To Ensure Maximum
Output With Minimum Resources. So Quality Manpower With Good
Academic Background Is Being Recruited In All Levels Of The Bank
Every Year For Rendering Quality Services To Its Customers.”

Human Resource Accounting
Human resource accounting is the process of identifying and reporting the Investments made in the Human Resources of
an organization that are presently not accounted for in the conventional accounting practices. Social Islami Bank Limited
formally does not practice Human Resources Accounting but regularly works out and looks into some important areas for
mathematical and co-relational understanding on the main business factors. Given below is the considerable index to the
management on which human related decisions are taken:
Description 2020 2019 2018 2017 2016 2015

Total number of employees 3100 2947 2844 2599 2363 2130
Total number of Branches 168 161 155 138 125 111
Employee Per Branch (nos) 18 18 18 19 19 19
Deposit per employee (million Tk) 103.99 97.37 87.22 88.03 80.64 65.7
Investment per employee ( millionTk) 96.97 89.37 83.83 80.82 73.72 61.36
Operating profit per employee (million Tk) 1.40 2.14 2.16 2.37 2.41 2.28
Salaries & Allowances per employee( millionTk) 1.15 1.15 1.10 1.12 1.03 1.03
Salaries & Allowances as percentage of Operating profit 82.14% 53.54% 51.21% 47.02% 42.82% 45.61%
Employee Benefits
Social Islami Bank Limited is very keen to establish and retain a very congenial working atmosphere. The bank has a
competitive & unique pay structure for its employees and always keep track on the necessity of revision on the passage of
time that matches with the living standards of the employees in one hand and competitive with other banks on the other
hand.
At present, SIBL is offering three types of long term employee benefits of which Provident Fund and Gratuity Fund is
approved by the Revenue Board and are funded liability for the bank. Sufficient provisions have been provided in the financial
statements of the bank for these two employee benefit funds as per International Accounting Standard 19 Accounting for
Employee Benefit. Apart from these two, another welfare fund called “SIBL Employees’ Superannuation Fund’ has been
maintaining solely for the purpose of welfare of the employees of the bank and also approved by NBR. All these funds are
governed and maintained by separate trustee board and funds are investing in very safe mode. The nature of the Provident
fund is 10% contributory from the both side of the employee and employer. The eligibility of such Provident fund is 5 years
whereas the eligibility of the gratuity fund to the employee is equivalent to 1 basic pay for 5 years services & equivalent to
2 basic pay for 7 years services.
SIBL is an employee welfare-oriented organization. For this reason, the management of the Bank always tries to sort out
all possible ways it deems beneficial to promote its employees’ professional skill and efficiency. It is observed that the
employees who were trained, render good performance. Social Islam Bank Training Institute always conduct foundation
training courses for the fresh Officers and Training, workshops and Seminar on different contemporary issues related to
banking industries where different Officers and executives have participated.
Training of Staff conducted by Social Islami Bank Training Institute from 01st January, 2020 to December, 2020

01. Training Course on “Export Procedure & Risk Management” 1 40
Training on “ Foundation Course in Banking for Probationary Officers
02. 1 25
and Assistant Officers”
03. Training on “ Foundation Course in Banking for Assistant Officers (Cash)” 2 81
04. Training on “ Foundation Course in Banking for Assistant Officers (General)” 1 40
Total 5 186

Workshop of Staff conducted by Social Islami Bank Training Institute from 01st January, 2020 to December, 2020

Workshop on “AML & CFT with special session on Trade Based ML
01 5 290
Prevention Procedures “
02 Workshop on “Agent Banking Operation for officials of Link Branch “ 6 142
Workshop on “CIB Online Reporting & data correction” and “Collateral
03 or Security Reporting” on 07.03.2020, 04.04.2020, 11.04.2020 1 80
&18,04,2020 accordingly
Workshop on “Cash Bonus: 1 e 100 Campaign through Online” from
04 4 161
13.07.2020 to 16.07.2020
Workshop on “Refund of Hajj Registration Fees from the Accounts of
05 1 19
19 Branches”
Workshop on “Compliance on AML (Anti Money Laundering) & CFT
06 6 408
(Combating Financing of Terrorism)”
Workshop on “Search criteria Agent Banking Division and Fatullah
07 1 12
Branch”
Workshop on “Incentives on Foreign Remittances to grow the Foreign
08 1 100
Remittance Business” on 12.08.2020 Through “ZOOM”.
Workshop on “Customer Service & Professional behavior” will be held
09 2 161
on 19, August 2020 at 03.00 pm Through “ZOOM”.
Workshop on “E-Account (KYC) will be held on 23, August 2020 at 03.00
10 5 644
pm Through “ZOOM”.
11 Workshop on “Cyber Security in Banking Operation.” 2 264
Workshop on “Creation of awareness on suspicious Transaction as well
12 2 161
as STR for all BAMLCOs of our Bank”
Workshop on “Implementation of recommendation no. 3 of decisions
13 1 70
taken at the CAMLCO Conference, 2020” through ZOOM on 14.11.2020
14 Workshop on “ ISS Reporting” 2 161
Total 39 2673
Management of the bank has emphasized and specially focused on the development of employees and to bring out the
persons’ insider instinct into light, SIBL Training Institute (SIBL TI) has restructured aiming to create leaders.
SIBL is sincere to address its employee’s health problem. The bank has appointed one full time doctor for the employees
of Head Office and Dhaka city branches. SIBL placed First Aid Box in its premises to provide instant medical facility for
all employees as and when needed. We have help desk, who are always besides to their ailing colleagues and their family
members for proving all kinds of supports including pecuniary facility under SIBL Employees’ Superannuation Fund and
CSR.
In order to evaluate the level of efficiency, improve the healthy competition among the employees and in a way to generate
motivation for the employees, Employees’ Performance Evaluation and Key Performance Indicator (KPI) have been
introduced from time to time. Upon the evaluation, the employees are motivated and awarded with promotion, accelerated
promotion and other benefits. In addition to that, various types of drives are taken to keep and upgrade the standard of the
Bank.

Demographic distribution of manpower of SIBL:
Breakdown by age group for permanent employees
Age range Gender 2020 2019 2018 2017 2016 2015

Male 567 502 502 380 382 413
< 30 years
Female 138 169 163 135 115 104
Male 1791 1734 1687 1640 1464 1275
30-50 years
Female 415 394 363 336 293 251
Male 174 137 119 101 103 84
> 50 years
Female 15 11 10 07 6 3
Total 3100 2947 2844 2599 2363 2130
Gender diversity among permanent employees
Employee Category Gender 2020 2019 2018 2017 2016 2015

Male 1549 1374 1352 1151 984 965
Entry level
Female 393 396 363 309 248 214
Male 942 961 921 824 804 695
Mid-level
Female 174 176 171 158 157 138
Male 41 38 35 146 161 112
Senior Management
Female 01 02 02 11 9 6
Total 3100 2947 2844 2599 2363 2130

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Donation to PM Relief Fund
Social Islami Bank Limited (SIBL) handed over Taka 50 million to Prime Minister Relief Fund as a part of Corporate Social
Responsibility (CSR). The Chairman of the Board of Directors of Social Islami Bank Limited Professor Md. Anwarul Azim
Arif handed over the donation cheque to Honorable Prime Minister Sheikh Hasina through virtual platform at Ganobhabon
on 20 September 2020.
Blankets Donation To Pm Relief Fund Donation to Bangabondhu Memorial Trust

Social Islami Bank Limited (SIBL) handed over blankets in Social Islami Bank Limited (SIBL) donated Taka 50 Million
favor of Prime Minister Relief Fund for underprivileged and to “Bangabondhu Memorial Trust” under its Corporate
cold-stricken people of the country as a part of Corporate Social Responsibility (CSR) on 06 January 2020. On behalf
Social Responsibility (CSR). The Chairman of the Board of the Bank, Mr. Md. Sayedur Rahman, Vice Chairman
of Directors of Social Islami Bank Limited Professor Md. of the Bank handed over the cheque to the Honourable
Anwarul Azim Arif handed over the specimen to Principal Prime Minister Sheikh Hasina at Ganobhabon. Mr. M.
Secretary to HPM in presence of Honorable Prime Minister Kamal Uddin, Director and Mr. Quazi Osman Ali, Managing
Sheikh Hasina through virtual platform at Ganobhabon on Director and CEO of SIBL were present in the program.
October 28, 2020.

SIBL Celebrated Birth Centenary Of Bangabandhu Sheikh Mujibur Rahman
Social Islami Bank Limited (SIBL) celebrated birth centenary of the Father of the Nation Bangabandhu Sheikh Mujibur
Rahman in it’s Head Office on 18 March 2020. Professor Md. Anwarul Azim Arif, Chairman of SIBL Md. Sayedur Rahman,
Vice Chairman, Members of Board of Directors, Mr. Quazi Osman Ali, Managing Director and CEO, Additional Managing
Director, Deputy Managing Director and other executives of the Bank were also present in the program. All the branches of
SIBL also celebrates the birth centenary of Bangabandhu Sheikh Mujibur Rahman.

SIBL Board of Directors participated in a rally while celebrating birth centenary of the Father of the Nation Bangabandhu
Sheikh Mujibur Rahman.
Board of Directors of SIBL celebrated the birth centenary of the Father of the Nation by cutting a cake.

SIBL Opened Mujib Corner
Social Islami Bank Limited (SIBL) inaugurated “Mujib Corner” at its Head Office, to mark the birth centenary celebration of
Father of the Nation Bangabandhu Sheikh Mujibur Rahman. Professor Md. Anwarul Azim Arif, Chairman of SIBL inaugurated
the “Mujib Corner”. Mr. Belal Ahmed Vice Chairman, Members of Board of Directors, Mr. Quazi Osman Ali, Managing Director
and CEO, Additional Managing Director, Deputy Managing Director and other executives of the Bank were present in the
inauguration program. The Bank also established another two Mujib Corners at Jashore and Jhalokathi.
Mujib Corner at Head Office

Mujib Corner at Jhalokathi
Mujib Corner at Jashore

9th Extraordinary General Meeting (EGM) Held
9th Extraordinary General Meeting (EGM) of Social Islami Bank Ltd. was held on 13 December 2020 through digital platform.
Professor Md. Anwarul Azim Arif, Chairman of the Bank, presided over the program in participation of the shareholders.
The meeting approved to increase authorized capital to Tk.3,000.00 Crore (Three Thousand Crore) from Tk.1,000.00 Crore (
One Thousand Crore) and to convert SIBL Mudaraba Perpetual Bond of Tk.500.00 Crore (Five Hundred Crore) into common
shares as per Bangladesh Bank instructions. The members of the Board of Directors attended the meeting. Mr. Quazi
Osman Ali, MD & CEO, and Mr. Abdul Hannan Khan, Company Secretary, were present in the meeting. Deputy Managing
Directors and senior executives of the Bank were also present on the occasion.
Social Islami Bank Shareholders Approved 10% Dividend at 25th AGM

The 25th Annual General Meeting of Social Islami Bank Limited (SIBL) was held on 15 September 2020 on virtual platform
due to coronavirus pandemic. The Bank’s shareholders approved 10 per cent dividend, 5 per cent in the form of cash and
5 per cent in the form of stock, for the financial year 2019 at the AGM. The Chairman of the Board of Directors of the
Bank and former Vice Chancellor of University of Chittagong Professor Md. Anwarul Azim Arif presided over the meeting.
Board of Directors of the Bank and shareholders were present in the meeting. Managing Director & CEO Mr. Quazi Osman
Ali and Company Secretary Mr. Abdul Hannan Khan were also present in the meeting. The shareholders expressed their
satisfaction for the performance of the Bank and suggested different guidelines on the virtual meeting.

Annual Business Conference- 2020
Held
Social Islami Bank Limited (SIBL) arranged two-
day long Annual Business Conference-2020
at hotel Grand Sultan Tea Resort and Golf at
Sreemangal, Moulvibazar on 10-11 January
2020. Dr. Md. Jahangir Hossain, Ms. Jebunnesa
Akbar and Prof. Dr. Mohammed Mizanur Rahman,
Directors of Social Islami Bank Limited were
present as Special Guests. The program was
presided over by Mr. Quazi Osman Ali, Managing
Director & CEO of Social Islami Bank. In his
speech, Mr. Quazi Osman Ali mentioned that the
Management of the Bank has taken strategic business policy to increase the overall business growth of the Bank in 2020. He hoped
Social Islami Bank Limited will be able to maintain a steady growth in all its business indicators. Additional Managing Director, Deputy
Managing Directors, Divisional Heads, Senior Executives and all Branch Managers of the Bank attended the program.
Annual Risk Conference 2020 held

Social Islami Bank Limited arranged Annual Risk
Conference-2019 on 11 January 2020 at Hotel
Grand Sultan Tea Resort and Golf at Sreemangal,
Moulvibazar. Mr. Quazi Osman Ali, Managing
Director & CEO of Social Islami Bank Limited
presided over the program.
25th Anniversary Celebration of SIBL

Social Islami Bank Limited celebrated its 25th
Anniversary at the Head Office of the Bank by
cutting a cake on 22 November 2020. Professor
Md. Anwarul Azim Arif, Chairman of the Board of
Directors of the Bank and former Vice Chancellor
of University of Chittagong, was present in the
program as the chief guest. Managing Director
and CEO Mr. Quazi Osman Ali presided over the
program.

SIBL Engaged Alpen Capital to Arrange
Fund for OBU
Social Islami Bank Limited and UAE based
financial advisor company Alpen Capital
signed an agreement on 12th March, 2020 at
the Head Office of SIBL. Under the scope of
the agreement, Alpen Capital will act as the
exclusive financial advisor in raising up to
USD 50 million fund for the Offshore Banking
Unit (OBU) of SIBL.
SIBL and BlueMount Capital Signed a

Mandate Agreement
Social Islami Bank Limited and Australia
Based Investment Bank BlueMount Capital
signed a Mandate Agreement on 24 March
2020 at the Head Office of SIBL. Mr. Quazi
Osman Ali, Managing Director & CEO and
other high officials from SIBL were present at
the signing ceremony.
SIBL Signed MoU with Primadollar for

Factoring Solution
Social Islami Bank Limited (SIBL) signed a
Memorandum of Understanding (MoU) with
UK based PrimaDollar Operations Limited
on August 25 2020 at SIBL Head Office. Mr.
Kazi Towhidul Alam, the then Additional
Managing Director, SIBL and Mr. Munwar
Uddin, Country Manager, Bangladesh of
PrimaDollar exchanged the MoU on behalf of
their respective organizations.

SIBL Launcheed Call Center
Social Islami Bank Ltd. launched Call Center to provide banking
services to the clients 24/7. Clients can now easily obtain any
information by dialing 16491 for home through any local mobile
operator and 09612001122 for abroad.
Prof. Md. Anwarul Azim Arif, Chairman of the Bank & former Vice
Chancellor of University of Chittagong, inaugurated the Call Center as
the chief guest on 01 September 2020 at Bank’s head office and Dr.
Md. Jahangir Hossain, Director of the Bank, was present as special
guest. Mr. Quazi Osman Ali, Managing Director & CEO, presided over
the inaugural ceremony.
Prof. Md. Anwarul Azim Arif, Chairman of the Bank, said that from its
inception SIBL has been providing banking services with top-notch
reputation. Inauguration of Call Center is an addition to elevate the
service level to another height. He asked all to work dedicatedly to
turn this Call Center into a unique one. He expected that obtaining
banking services would be more convenient from home and abroad
through this Call Center.
Mr. Quazi Osman Ali, MD & CEO, accentuated the magnitude of the
Call Center to ensure modern banking services. The clients can avail
the information of branch, subbranch, agent banking outlet, account
opening, transactions, deposit, investment, cards, internet banking,
mobile app “SIBL NOW”, existing rate of return, fees, charges, and
other important information from anywhere anytime. He also cited
that clients can also avail any information regarding remittance and
foreign trade through the Call Center. This will surely uplift the service
level of the Bank.

E-Account Opening Ceremony
SIBL started the operation of opening e-Account through its mobile app “SIBL NOW”. Any people can open an account
through using the mobile app from anywhere anytime. Managing Director & CEO Quazi Osman Ali inaugurated the
e-Account launching program as chief guest through virtual platform on 14 October 2020 at Head Office, Dhaka. Abu
Naser Chowdhury, Md. Sirajul Hoque, Md. Shamsul Hoque, Deputy Managing Directors, and Abdul Hannan Khan, Company
Secretary, Md. Sultan Badsha, CITO, ICTD, Md. Moniruzzaman, Head of Marketing & Brand Communication, Md. Sharif
Al Kashem, Head of Card division, were also present at the program. Managers of different branches virtually joined the
program.
In his inaugural speech, the MD & CEO of the Bank said that SIBL is the leading Bank to continuously bring novelty and
variety in its digital services and products to expedite the true digital transformation, and launching e-Account is an addition
in the list of services. He also added that MTDR & DPS accounts would be opened very soon through the App so that people
can avail all banking services from home.
Donation to Islami Arabic University

Social Islami Bank Ltd. handed over a cheque of
donation to Islamic Arabic University (IAU), Dhaka under
the bank’s CSR activity. A cheque hand over ceremony
took place at the Hon’ble Vice Chancellor Prof. Dr.
Mohammad Ahsan Ullah’s chamber on 13.01.2020 at the
university. The cheque was handed over by the bank’s
Hon’ble Deputy Managing Director Mr. Md. SirajulHaque
to the Hon’ble Vice-Chancellor of IAU.
Insuarance Claim Settlement

Social Islami Bank Limited (SIBL) and Padma Islami Life
Insurance Limited jointly organized an Insurance claim
settlement ceremony as part of group life insurance
policy for the deceased official of the Bank recently
at Bank’s Head Office. Mr. Md. Sirajul Hoque, Deputy
Managing Director of SIBL and Mr. Md. Morshed Alam
Siddiqui, Managing Director & CEO (CC) Padma Islami
Life Insurance Limited handed over the cheque of life
insurance to family of deceased official of the Bank.

SIBL Opened Seven New Branches in 2020 at Different Places of the Country
Bhanga, Muradnagar and Chayani Bazar Branch

Date: 24 November 2020
Pragati Sarani and Boro Darogarhut Branch

Date: 24 December 2020
Bakalia Branch Salimgonj Branch

Date: 10 December 2020 Date: 30 December 2020

OPENING OF SUB-BRANCHES
Social Islami Bank Limited (SIBL) opened 43 sub-branches throughout the year 2020 at different places of the country.
OPENING OF AGENT BANKING OUTLET
Social Islami Bank Limited (SIBL) opened 59 Agent Banking outlets throughout the year 2020 in different places of the country.

Foundation Training Held
Chairman of SIBL Professor Anwarul Azim Arif delivered motivational speech to the participants of Foundation Training
arranged for Probationary Officer of the Bank.
Workshop on Agent Banking Operation

Social Islami Bank Limited arranged workshop on “Agent Banking Operation” in its Training Institute recently. Mr. Quazi
Osman Ali, Managing Director & CEO of the Bank inaugurated the workshop. Mr. Md. Sirajul Hoque, Deputy Managing
Director of the Bank were also present. Officials of Agent Banking Operations were the participants of the workshop.

Inauguration of UCEP-SIBL Skills Training Project
“UCEP-SIBL Skills Training Project” was inaugurated on
12.01.2020 at Dhaka South Region of UCEP. Mr. Quazi Osman
Ali, Managing Director & CEO of SIBL was present as the
Chief Guest while Mrs. Tahsinah Ahmed, Executive Director
of UCEP Bangladesh presided over the program.
Ms. Tahsinah said that UCEP has been working since 1972 for
the development of the underprivileged youth. She thanked
SIBL for extending financial support for this project. Mr. Quazi
Osman Ali asserted that SIBL is always concerned with the
social issues and expressed optimism to be with UCEP in
future.
Under this project, SIBL will provide financial support and

UCEP will provide all technical and logistic supports. Initially
the training program will be started with 100 underprivileged
youth in Dhaka and Chattogram and gradually it will be
extended other divisions of the country. The participants will
also get job placement opportunity.

CORPORATE FINANCE
Project Name: Project Name:

Lub-rref (Bangladesh) Ltd. Crossline Knit Fabrics Ltd
Financed By: Financed By:
Agrabad Branch, Chottagram Foreign Exchange Branch, Dhaka

Best Golden Flour Mills Ltd Sadma Fashon
New Eskaton Branch, Dhaka Foreign Exchange Branch, Dhaka

Monno Ceramic Industries Ltd Thermax Spinning Mills Ltd
Principal Branch, Dhaka Principal Branch, Dhaka

SME & AGRI FINANCE
Client’s Name: Client’s Name:

Btothers Textile and Weaving Mill M. H. & Co. Ltd
Dhanmondi Branch, Dhaka Dhanmondi Branch, Dhaka

Ekota Telapia Hatchery Fahiza Matsha Chas Prokalpa
Elliotgonj Branch, Cumilla Elliotgonj Branch, Cumilla

Md Uzzal Hossain Tamim Poultry Farm
Navaran Branch, Jashore Shariatpur Branch, Shariatpur

FAMILY EMPOWERMENT ISLAMIC MICRO FINANCE
Client’s name: Md. Tariful Islam Client’s Name: Abdul Ali

SIBL Navaron Branch SIBL Tongi Branch
Client’s Name: Mrs. Maleka Begum Client’s Name: Mrs. Shaleha Begum
SIBL Navaron Branch SIBL Galimpur Branch
Client’s name: Shaikh Parvez Ali Client’s Name: Mr. Mosharaf Hossain Khan
SIBL Fakirhat Branch SIBL Tongi Branch

INDEPENDENT AUDITORS’ REPORT
TO THE SHAREHOLDERS OF SOCIAL ISLAMI BANK LIMITED
REPORT ON THE AUDIT OF THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
OPINION
We have audited the consolidated financial statements of Social Islami Bank Limited and its subsidiaries (the “Group”)
as well as the separate financial statements of Social Islami Bank Limited (the “Bank”), which comprise the consolidated and
separate balance sheets as at 31 December 2020 and the consolidated and separate profit and loss accounts, consolidated
and separate statements of changes in equity and consolidated and separate cash flow statements for the year then ended,
and notes to the consolidated and separate financial statements, including a summary of significant accounting policies and
other explanatory information.
In our opinion, the accompanying consolidated financial statements of the Group and separate financial statements of the Bank
give a true and fair view of the consolidated financial position of the Group and the separate financial position of the Bank
as at 31 December 2020, and of its consolidated and separate financial performance and its consolidated and separate cash
flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as explained in note 2 and
comply with the Bank Company Act, 1991 (as amended up to date), the Companies Act, 1994, the Rules and Regulations issued
by the Bangladesh Bank, the Rules and Regulations issued by the Bangladesh Securities & Exchange Commission (BSEC) and
other applicable Laws and Regulations.
BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those
standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated and Separate Financial
Statements section of our report. We are independent of the Group and the Bank in accordance with the International Ethics
Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), Bangladesh Securities and
Exchange Commission (BSEC) and Bangladesh Bank, and we have fulfilled our other ethical responsibilities in accordance with
the IESBA Code and the Institute of Chartered Accountants of Bangladesh (ICAB) Bye Laws. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion.
KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the consolidated
and separate financial statements for 2020. These matters were addressed in the context of the audit of the consolidated and
separate financial statements, and in forming the Auditors’ opinion thereon, and we do not provide a separate opinion on these
matters. For each matter below our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditors’ responsibilities for the audit of the consolidated and separate
financial statements section of our report, including in relation to these matters.
Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material
misstatements of the consolidated and separate financial statements. These results of our audit procedures, including the
procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying consolidated
and separate financial statements.

Description of key audit matters Our response to key audit matters
Measurement of provision for investments
The process for estimating the provision for We tested the design and operating effectiveness of key controls
investments portfolio associated with credit risk is focusing on the following:
significant and complex.
Credit appraisal, investments disbursement procedures, monitoring
For the individual analysis for large exposure, and provisioning process;
provisions calculation considers the estimates of
future business performance and the market value of Identification of loss events, including early warning and default
collateral provided for credit transactions. warning indicators; and
For the collective analysis of exposure on portfolio Reviewed quarterly Classification of Investments; Our substantive
basis, provision calculation and reporting are procedures in relation to the provision for investments portfolio
manually processed that deals with voluminous comprised the following:
databases, assumptions and estimates.
Reviewed the adequacy of the general and specific provisions in line
At year end the Group reported total gross with related Bangladesh Bank guidelines;
Investments of BDT 299,717.94 million (2019: BDT
Assessed the methodologies on which the provision amounts are
263,468.59 million) and provision for investments of
based, recalculated the provisions and tested the completeness and
BDT 13,254 million (2019: BDT 11,997 million).
accuracy of the underlying information;
Evaluated the appropriateness and presentation of disclosures against
relevant accounting standards and Bangladesh Bank guidelines.
Finally, compared the amount of provision requirement as determined
by Bangladesh Bank inspection team to the actual amount of provision
maintained.
See note no 7 and 14 to the financial statements
Implementation of IFRS 16 Leases
IFRS 16 modifies the accounting treatment of In responding to the identified key audit matter, we completed the
operating leases at inception, with the recognition following audit procedures:
of a right of use (ROU) on the leased asset and of a
liability for the lease payments over the lease contract Assessed the design and implementation of key controls pertaining
term. With respect to operating leases of premises to the determination of the IFRS 16 Leases impact on the financial
used by the Bank, at inception of the lease, the lessor statements of the Bank;
receives a right of using the premises, in exchange of
Assessed the appropriateness of the discount rates applied in
a lease debt, using an implicit discount rate.
determining lease liabilities;
Our key audit matter was focused on all leasing
Verified the accuracy of the underlying lease data by agreeing to
arrangements within the scope of IFRS 16 are
original contract and checked the accuracy of the IFRS 16 calculations
identified and appropriately included in the calculation
through recalculation of the expected IFRS 16 adjustment; and
of the transitional impact and specific assumptions
applied to determine the discount rates for lease are Assessed whether the disclosures within the financial statements are
inappropriate. appropriate in light of the requirements of IFRS.
See note no 8, 14, 27 to the financial statements
Impairment assessment of unquoted investments

In the absence of a quoted price in an active market, We have assessed the processes and controls put in place by the
the fair value of unquoted shares and bonds, especially Company to ensure all major investment decisions are undertaken
any impairment is calculated using valuation through a proper due diligence process.
techniques which may take into consideration direct or
indirect unobservable market data and hence require We tested a sample of investments valuation as at 31 December
an elevated level of judgment. 2020 and compared our results to the recorded value.
Finally, we assessed the appropriateness and presentation of
disclosures against relevant accounting standards and Bangladesh
Bank guidelines.
See note no 6 to the financial statements

IT systems and controls
Our audit procedures have a focus on IT systems and We tested the design and operating effectiveness of the Bank’s IT
controls due to the pervasive nature and complexity of access controls over the information systems that are critical to
the IT environment, the large volume of transactions financial reporting. We tested IT general controls (logical access,
processed in numerous locations daily and the reliance changes management and aspects of IT operational controls).
on automated and IT dependent manual controls. This included testing that requests for access to systems were
appropriately reviewed and authorized. We tested the Bank’s
Our areas of audit focus included user access periodic review of access rights and reviewed requests of changes to
management, developer access to the production systems for appropriate approval and authorization. We considered
environment and changes to the IT environment. These the control environment relating to various interfaces, configuration
are keys to ensuring IT dependent and application- and other application layer controls identified as key to our audit.
based controls are operating effectively.
Legal and regulatory matters
We focused on this area because the Bank and its We obtained an understanding, evaluated the design and tested the
subsidiaries (the “Group”) operates in a legal and operational effectiveness of the Bank’s key controls over the legal
regulatory environment that is exposed to significant provision and contingencies process.
litigation and similar risks arising from disputes and
regulatory proceedings. Such matters are subject to We enquired to those charged with governance to obtain their view
many uncertainties and the outcome may be difficult on the status of all significant litigation and regulatory matters.
to predict.
We enquired of the Bank’s internal legal counsel for all significant
These uncertainties inherently affect the amount litigation and regulatory matters and inspected internal notes and
and timing of potential outflows with respect to the reports.
provisions which have been established and other
We assessed the methodologies on which the provision amounts are
contingent liabilities.
based, recalculated the provisions, and tested the completeness and
Overall, the legal provision represents the Group’s and accuracy of the underlying information.
the Bank’s best estimate for existing legal matters that
We also assessed the Bank’s provisions and contingent liabilities
have a probable and estimable impact on the Group’s
disclosure.
financial position.
EMPHASIS OF MATTER
We draw attention to Note- 5.1 and 5.2, balance with financial institutions includes MTDR with International Leasing and Financial
Services Limited, ICB Islamic Bank Limited, Reliance Finance Limited, FAS Finance and Investment Limited and Union Capital
Limited amounting total Tk. 272.14 crore. Due to Covid 19, the above NBFIs has challenged by liquidity crisis and prolonged the
withdrawal of its deposits. Our opinion is not modified in respect of this matter.
OTHER INFORMATION
Management is responsible for the other information. The other information comprises all of the information in the Annual
Report other than the consolidated and separate financial statements and our Auditors’ report thereon. The Annual Report is
expected to be made available to us after the date of this Auditors’ report.
Our opinion on the consolidated and separate financial statements does not cover other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the other
information identified above when it becomes available and, in doing so, consider whether the other information is materially
inconsistent with the consolidated and separate financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS AND INTERNAL CONTROLS
Management is responsible for the preparation and fair presentation of the consolidated financial statements of the Group and
also separate financial statements of the Bank in accordance with IFRSs as explained in note 2 and 3, and for such internal
control as management determines is necessary to enable the preparation of consolidated and separate financial statements
that are free from material misstatement, whether due to fraud or error. The Bank Company Act, 1991 and the Bangladesh Bank
Regulations require the Management to ensure effective internal audit, internal control and risk management functions of the
Bank. The Management is also required to make a self-assessment on the effectiveness of anti-fraud internal controls and
report to Bangladesh Bank on instances of fraud and forgeries.
In preparing the consolidated and separate financial statements, management is responsible for assessing the Group’s and the
Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Group and the Bank or to cease operations, or
has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s and the Bank’s financial reporting process.
AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED AND SEPARATE FINANCIAL
STATEMENTS
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors’ report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated and separate financial statements
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Group’s and the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our Auditors’ report to the related disclosures in the consolidated and separate financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our Auditors’ report. However, future events or conditions may cause the Group and the Bank to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including
the disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision
and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
In accordance with the Companies Act, 1994, the Securities and Exchange Rules 1987, the Bank Company Act, 1991 and the
rules and regulations issued by Bangladesh Bank, we also report that:
i. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for
the purpose of our audit and made due verification thereof;
ii. to the extent noted during the course of our audit work performed on the basis stated under the Auditors’ Responsibility
section in forming the above opinion on the consolidated financial statements and considering the reports of the
Management to Bangladesh Bank on anti-fraud internal controls and instances of fraud and forgeries as stated under the
Management’s Responsibility for the financial statements and internal control:
a. internal audit, internal control and risk management arrangements of the Group as disclosed in the financial statements
appeared to be materially adequate;
b. nothing has come to our attention regarding material instances of forgery or irregularity or administrative error and
exception or anything detrimental committed by employees of the Group and its related entities {other than matters
disclosed in these financial statements};
iii. Consolidated financial statements of the Bank include two subsidiaries, namely SIBL Securities Limited and SIBL Investment
Limited reflect total assets of BDT 385,209 million as at 31 December 2020 and total operating income of BDT 10,455
million for the year ended 31 December 2020. The results of these subsidiaries have been properly reflected in the Group’s
consolidated financial statements;
iv. in our opinion, proper books of account as required by law have been kept by the Group and the Bank so far as it appeared
from our examination of those books;
v. the records and statements submitted by the branches have been properly maintained and consolidated in the financial
statements;
vi. the consolidated balance sheet and consolidated profit and loss account together with the annexed notes dealt with by the
report are in agreement with the books of account and returns;
vii. the expenditures incurred were for the purpose of the Bank’s business for the year;
viii. the consolidated financial statements have been drawn up in conformity with prevailing rules, regulations and accounting
standards as well as related guidance issued by Bangladesh Bank;
ix. adequate provisions have been made for advance and other assets as per DBI letter no: DBI-4/42(2)/2021-388 which are
in our opinion, doubtful of recovery;
x. the information and explanations required by us have been received and found satisfactory;
xi. we have reviewed over 80% of the risk weighted assets of the Bank and spent over 9,800 person hours; and
xii. Capital to Risk-weighted Asset Ratio (CRAR) as required by Bangladesh Bank has been maintained adequately during the
year.
Showkat Hossain, FCA Sampad Kumar Basak, FCA

Partner Partner
Enrolment no. 0137 Enrolment no. 0625
Hoda Vasi Chowdhury & Co Shafiq Basak & Co.
Chartered Accountants Chartered Accountants
DVC No. 210503137AS675845 DVC No.: 2105030625AS496690
Place: Dhaka
Date: 03 May 2021

SOCIAL ISLAMI BANK LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2020
31.12.2020 31.12.2019
Particulars Note(s)
Taka Taka
PROPERTY AND ASSETS
Cash in hand
Cash in hand (including foreign currencies) 3(a) 2,973,262,850 2,949,359,808
Balance with Bangladesh Bank & its Agent Banks
(including foreign currencies) 3.1 30,400,773,390 28,949,172,602
33,374,036,240 31,898,532,410
Balance with other Banks and Financial Institutions
In Bangladesh 4(a) 3,889,054,019 2,288,375,533
Outside Bangladesh 4.2 611,795,207 1,084,292,499
4,500,849,226 3,372,668,032
Placement with Banks and other Financial Institutions 5 6,200,795,494 6,826,069,299
Investments in shares and securities 6(a)

Government 14,462,160,000 13,692,300,000
Others 4,275,574,273 4,170,415,304
18,737,734,273 17,862,715,304
Investments 7 (a)
General investment etc. 287,594,854,278 251,238,985,230
Bills purchased and discounted 12,123,089,288 12,229,604,419
299,717,943,566 263,468,589,649
Fixed assets including premises 8(a) 4,446,983,032 3,613,716,895
Other assets 9(a) 18,231,614,894 18,143,066,838
Non Banking assets - -
Total assets 385,209,956,725 345,185,358,427
LIABILITIES AND CAPITAL

Liabilities
Placement from Banks & other Financial Institutions 10 - -
Deposits and other accounts 11
Mudaraba savings deposits 33,622,114,210 25,739,179,658
Mudaraba term deposits 175,364,565,456 165,687,514,476
Other mudaraba deposits 72,789,409,014 64,112,318,321
Al-wadeeah current and other deposit accounts 11.2(a) 34,819,969,171 25,608,307,719
Bills payable 11.3 4,909,336,453 5,982,863,785
Cash waqf fund 377,056,255 342,710,311
321,882,450,559 287,472,894,270
Bond
SIBL mudaraba subordinated bond 12 8,000,000,000 9,400,000,000
SIBL mudaraba perpetual bond 13 1,500,000,000 -
9,500,000,000 9,400,000,000
Other liabilities 14(a) 35,292,055,497 30,905,629,453
Deferred tax liabilities/ (assets) 15 (a) 439,019,598 94,704,927
Total liabilities 367,113,525,654 327,873,228,650
Capital/shareholders' equity
Paid-up capital 16.2 9,380,084,230 8,933,413,560
Statutory reserve 17 7,030,390,821 6,422,261,269
General Reserve 17(a) 11,314,058 9,843,356
Revaluation reserve on fixed assets 18 571,142,055 931,379,261
Retained earnings 19(a) 1,103,498,067 1,015,230,517
Total shareholders' equity of parent Company, SIBL 18,096,429,231 17,312,127,963
Non controlling interest 19(b) 1,840 1,814
Total shareholders’ equity of parent Company, SIBL with non controlling interest 18,096,431,071 17,312,129,777
Total liabilities and shareholders' equity of the group 385,209,956,725 345,185,358,427

31.12.2020 31.12.2019
Particulars Note(s)
Taka Taka
CONTINGENT LIABILITIES
Acceptances and endorsements 20.1 21,329,871,746 21,931,661,800

Irrevocable letters of credit (including back to back bills) 20.2 15,362,950,636 15,775,047,149
Letters of guarantee 20.3 10,352,181,319 11,322,648,716
Bills for collection 20.4 5,394,930,566 4,565,448,355
Other contingent liabilities 20.5 - -
Total 52,439,934,267 53,594,806,020
OTHER COMMITMENTS
Documentary credits and short term trade related transactions - -

Forward assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other Commitments
- -
Total - -
Total off balance sheet items including
Contingent liabilities 52,439,934,267 53,594,806,020
Consolidated Net Asset Value per share (CNAV/share) (Prior year

39(i) 19.29 18.46
restated)
Annexed notes (1 to 51) form an integral part of these financial statements
Director Director Director Managing Director & CEO

Signed as per our report of same date

Enrollment no. 0137 Enrollment no. 0625
Partner Partner
Hoda Vasi Chowdhury & Co. Shafiq Basak & Co.
DVC No. 2105030137AS675845 DVC No. 2105030625AS496690
Dhaka, Bangladesh
Date: 03.05.2021

CONSOLIDATED PROFIT AND LOSS ACCOUNT
31.12.2020 31.12.2019
Particulars Note(s)
Taka Taka
Investment income 21(a) 27,114,836,024 27,872,037,075
Profit paid on deposits 22(a) 19,557,578,597 18,500,646,256
Net investment income 7,557,257,427 9,371,390,819
Income from investment in shares/securities 23(a) 778,358,729 773,998,540
Commission, exchange and brokerage 24(a) 1,486,658,285 1,526,240,435
Other operating income 25(a) 632,784,502 689,079,020
2,897,801,516 2,989,317,995
Total operating income 10,455,058,943 12,360,708,815
Salaries and allowances 26(a) 3,584,686,809 3,413,882,572

Rent, taxes, insurances, electricity etc. 27(a) 390,764,845 579,209,966
Legal expenses 28 9,374,270 11,268,775
Postage, stamps, telecommunication etc. 29(a) 7,333,769 8,776,440
Stationery, printings, advertisements etc. 30(a) 122,909,565 161,473,808
Managing Director's salary and allowances 31 13,621,826 12,712,000
Directors' fees & expenses 32(a) 5,322,836 9,918,184
Shariah supervisory committee's fees & expenses 33 74,629 446,507
Auditors` fees 977,500 977,500
Charges on investment losses - -
Depreciation & repair of Bank's assets 34(a) 591,191,793 379,910,822
Zakat expenses 165,694,341 149,522,749
Other expenses 35(a) 1,181,269,234 1,265,616,824
Total operating expenses 6,073,221,416 5,993,716,149
Profit/(Loss) before provision 4,381,837,527 6,366,992,666

Provision for investments 1,272,053,993 3,184,444,138
Other provisions 36(a) 36,011,634 31,542,301
Total provision 37(a) 1,308,065,627 3,215,986,439
Total profit/(loss) before income taxes 3,073,771,900 3,151,006,227
Provision for taxation 38(a) 1,506,500,770 1,625,326,874

Current tax 1,499,394,282 1,606,058,965
Deferred tax 7,106,488 19,267,908
Net profit/(loss) after taxation 1,567,271,131 1,525,679,354
Appropriations
Statutory reserve 608,129,552 626,805,871
Retained surplus 959,141,578 898,873,482
Attributable to:
Equity holders' of the Bank 959,141,552 898,873,480
Non controlling interest 26 2
959,141,578 898,873,482
Consolidated Earning Per Share (CEPS) (Prior year restated) 39(a) 1.67 1.63


Partner Partner
DVC No. 2105030137AS675845 DVC No. 2105030625AS496690
Dhaka, Bangladesh
Date: 03.05.2021

CONSOLIDATED CASH FLOW STATEMENT
31.12.2020 31.12.2019
Particulars Note(s)
Taka Taka
Cash Flow from operating activities
Investment Income receipt 40(a) 27,251,621,057 27,679,327,604
Profit paid on deposits (18,550,348,689) (16,756,600,941)
Dividend receipts 778,358,729 773,998,540
Fees & commission receipt 711,813,684 742,845,087
Cash payments to employees (3,598,308,635) (3,426,594,572)
Cash payments to suppliers (130,243,334) (170,250,248)
Income tax paid (1,312,378,550) (1,326,270,037)
Receipts from other operating activities 41(a) 1,370,377,559 1,418,028,758
Payments for other operating activities 42(a) (2,042,307,306) (2,084,247,716)
Operating profit before changes in operating assets and liabilities 43(a) 4,478,584,514 6,850,236,475
Increase/Decrease in operating assets and liabilities
Statutory deposits - -
Net trading securities (875,018,969) (6,113,692,937)
Investments to other Banks - -
Investment to customers (36,249,353,918) (25,614,418,696)
Other assets 44(a) 1,087,045,459 4,128,793,353
Deposits from other Banks 2,771,192,536 (3,876,630,345)
Deposits received from customers 30,631,133,845 41,654,702,726
Other liabilities on account of customers - -
Trading liabilities - -
Other liabilities 45(a) 1,783,834,704 1,293,392,753
Sub Total (851,166,342) 11,472,146,853
A. Net Cash flow from operating activities 3,627,418,172 18,322,383,329
Cash flows from investing activities
Proceeds from sale of securities - -
Payment for purchases of securities - -
Proceeds from sale of fixed assets - -
Purchases of property, plant & equipment's (1,339,587,820) (354,087,403)
Purchase/Sale of subsidiaries - -
B. Net Cash flows from investing activities (1,339,587,820) (354,087,403)
Cash flows from financing activities
Receipts from issue of debt instruments - (8,000,000,000)
SIBL Mudaraba Subordinated Bond (1,400,000,000) (1,400,000,000)
SIBL mudaraba perpetual bond 1,500,000,000 -
Receipts from issue of right shares/ordinary share - -
Dividend paid in cash (446,670,678) -
C. Net Cash flow from financing activities (346,670,678) (9,400,000,000)
D. Net increase/(decrease) in cash & cash equivalents (A+B+C) 1,941,159,675 8,568,295,925
E. Effects of exchange rate changes on cash & cash equivalents 37,251,544 54,445,609
F. Cash and cash equivalents at the beginning of the year 42,097,269,741 33,474,528,207
G. Cash and cash equivalents at the end of the year (D+E+F) 46(a) 44,075,680,961 42,097,269,741
Consolidated Net Operating Cash Flow Per Share (NOCFPS) 39(ii) 3.87 19.53
(prior year restated)

Dhaka, Bangladesh
Date: 03.05.2021

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(Amount in Taka)
Share General Asset Non
Paid-up Statutory Retained
Particulars Premium / Other Revaluation Controlling Total
Capital Reserve Earnings
Account Reserves Reserve Interest
1 2 3 4 5 6 7 8 9=(2 to 8)
Balance as at 01 January 2020 8,933,413,560 - 6,422,261,269 9,843,356 931,379,261 1,015,230,517 1,814 17,312,129,777
Changes in Accounting Policy - - - - - - - -
Restated Balance - - - - - - - -
Surplus / (Deficit) on account of Revaluation of Properties - - - - (337,208,183) - (337,208,183)
Surplus / (Deficit) on account of Revaluation of Investment - - - - - - -
Currency translation Difference - - - - - - - -
Net gain and losses not recognized in the Income Statement - - - - - - - -
Net profit for the year - - - - - 1,567,271,105 - 1,567,271,105
Appropriation made during the year - - 608,129,552 1,470,702 - (608,129,552) - 1,470,702
Dividend:
Cash Dividend - - - - (446,670,678) - (446,670,678)
Bonus shares 446,670,670 - - - - (446,670,670) - -
Transferred to retained earnings - - - - (23,029,023) 23,029,023 - -
Adjustment for implementation of IFRS 16 (561,678) (561,678)
Non-controlling interest - - - - - - 26 26
Total group shareholders' equity as on 31 Dec 2020 9,380,084,230 - 7,030,390,821 11,314,058 571,142,055 1,103,498,067 1,840 18,096,431,071
Eligible Capital Under Basel III: 9,380,084,230 7,030,390,821 11,314,058 - 1,103,498,067 17,525,287,175
Add: SIBL Mudaraba Perpetual Bond 1,500,000,000
Add: General provision for unclassified investment 5,441,654,902
Add: SIBL Mudaraba Subordinated Bond 5,960,000,000
Total eligible capital as on 31 December 2020 30,426,942,077
Total group shareholders' equity as on 31 Dec 2019 8,933,413,560 - 6,422,261,269 9,843,356 931,379,261 1,015,230,517 1,814 17,312,129,777
Eligible Capital Under Basel III: 8,933,413,560 6,422,261,269 9,843,356 - 1,015,230,517 16,380,748,701
Total eligible capital as on 31 Dec 2019 27,942,594,716


Dhaka, Bangladesh
Date: 03.05.2021
SOCIAL ISLAMI BANK LIMITED
BALANCE SHEET
31.12.2020 31.12.2019
Particulars Note(s)
Taka Taka
PROPERTY AND ASSETS
Cash in hand
Cash in hand (Including foreign currencies) 3 2,972,709,048 2,949,269,520
Balance with Bangladesh Bank & its Agent Banks
(Including foreign currencies) 3.1 30,400,773,390 28,949,172,602
33,373,482,438 31,898,442,122
Balance with other Banks and Financial Institutions 4
In Bangladesh 3,889,038,464 2,288,360,101
Outside Bangladesh 611,795,207 1,084,292,499
4,500,833,672 3,372,652,600
Placement with Banks & other Financial Institutions 5 6,200,795,494 6,826,069,299
Investments in shares & securities 6
Government 14,462,160,000 13,692,300,000
Others 4,025,207,661 3,946,685,081
18,487,367,661 17,638,985,081
Investments 7
General investments etc. 288,494,854,278 252,038,985,230
Bills purchased and discounted 12,123,089,288 12,229,604,419
300,617,943,566 264,268,589,649
Fixed assets including premises 8 4,431,010,176 3,606,049,743
Other assets 9 17,388,277,852 17,445,443,133
Non Banking assets - -
Total assets 384,999,710,859 345,056,231,627

Liabilities
Placement from Banks & other Financial Institutions 10 - -
Deposits and other accounts 11
Mudaraba savings deposits 33,622,114,210 25,739,179,658
Mudaraba term deposits 175,364,565,456 165,687,514,476
Other mudaraba deposits 72,789,409,014 64,112,318,321
Al-wadeeah current & other deposit accounts 11.2 35,321,029,179 26,072,068,558
Bills payable 11.3 4,909,336,453 5,982,863,785
Cash waqf fund 377,056,255 342,710,311
322,383,510,566 287,936,655,109
Bond
SIBL mudaraba subordinated bond 12 8,000,000,000 9,400,000,000
SIBL mudaraba perpetual bond 13 1,500,000,000 -
9,500,000,000 9,400,000,000
Other liabilities 14 34,639,606,343 30,354,428,531

Deferred tax liabilities/ (assets) 15 438,206,855 93,817,514
Total liabilities 366,961,323,764 327,784,901,154
Capital/Shareholders' equity
Paid-up capital 16.2 9,380,084,230 8,933,413,560
Statutory reserve 17 7,030,390,821 6,422,261,269
Revaluation reserve on fixed assets 18 571,142,055 931,379,261
Retained earnings 19 1,056,769,989 984,276,383
Total shareholders' equity 18,038,387,095 17,271,330,473
Total liabilities & shareholders' equity 384,999,710,859 345,056,231,627

31.12.2020 31.12.2019
Particulars Note(s)
Taka Taka
Acceptances and Endorsements 20.1 21,329,871,746 21,931,661,800

Irrevocable Letters of Credit (including Back to Back Bills) 20.2 15,362,950,636 15,775,047,149
Letters of Guarantee 20.3 10,352,181,319 11,322,648,716
Bills for Collection 20.4 5,394,930,566 4,565,448,355
Other Contingent Liabilities 20.5 - -
Total 52,439,934,267 53,594,806,020
OTHER COMMITMENTS
Documentary credits and short term trade related transactions - -
Forward assets purchased and forward deposits placed - -

Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other
commitments - -
Total - -
Total Off Balance Sheet Items including
Contingent Liabilities 52,439,934,267 53,594,806,020
Net Asset Value per share (NAV/share) (Prior year restated) 39 (i) 19.23 18.41


Partner Partner
DVC No. 2105030137AS675845 DVC No. 2105030625AS496690
Dhaka, Bangladesh
Date: 03.05.2021

PROFIT AND LOSS ACCOUNT
31.12.2020 31.12.2019
Particulars Note(s)
Taka Taka
Investment income 21 27,036,266,956 27,797,425,826
Profit paid on deposits 22 19,484,793,192 18,428,552,565
Net investment income 7,551,473,764 9,368,873,261
Income from investment in shares and securities 23 762,379,471 760,574,012
Commission, Exchange and Brokerage 24 1,421,214,804 1,465,828,639
Other operating income 25 631,009,280 687,299,082
2,814,603,555 2,913,701,732
Total operating income 10,366,077,319 12,282,574,994
Operating expenses
Salaries and allowances 26 3,553,987,716 3,382,863,890
Rent, taxes, insurances, electricity etc. 27 390,000,739 573,011,660
Legal expenses 28 9,374,270 11,268,775
Postage, stamps, telecommunication etc. 29 6,359,275 6,750,345
Stationery, printings, advertisements etc. 30 122,607,574 160,996,133
Managing Director's salary and allowances 31 13,621,826 12,712,000
Directors' fees & expenses 32 4,786,836 9,498,684
Shariah supervisory committee's fees & expenses 33 74,629 446,507
Auditors' fees 920,000 920,000
Charges on investment losses - -
Depreciation & repair to Bank's assets 34 584,665,633 377,693,254
Zakat expenses 165,694,341 149,522,749
Other expenses 35 1,170,773,372 1,254,780,502
Total operating expenses 6,022,866,210 5,940,464,499
Profit/(loss) before provision 4,343,211,109 6,342,110,494

Provision for investments 1,272,053,993 3,184,444,138
Other provisions 36 30,509,355 23,637,000
Total provision 37 1,302,563,348 3,208,081,138
Total profit/(loss) before income taxes 3,040,647,761 3,134,029,357
Provision for taxation 38 1,489,712,278 1,612,578,681

Current tax 1,482,531,120 1,593,092,009
Deferred tax 7,181,158 19,486,671
Net profit/(loss) after taxation 1,550,935,483 1,521,450,676
Appropriations:
Statutory reserve 608,129,552 626,805,871
Retained surplus 942,805,931 894,644,805
1,550,935,483 1,521,450,676
Earning per share (EPS) (prior year restated) 39 1.65 1.62



Partner Partner
DVC No. 2105030137AS675845 DVC No. 2105030625AS496690
Dhaka, Bangladesh
Date: 03.05.2021
CASH FLOW STATEMENT
31.12.2020 31.12.2019
Particulars Note(s)
Taka Taka
Investment Income receipt 40 27,173,051,989 27,604,716,354
Profit paid on deposits (18,477,563,284) (16,684,507,250)
Dividend receipts 762,379,471 760,574,012
Fees & commission receipt 646,370,203 682,433,291
Cash payments to employees (3,567,609,542) (3,395,575,890)
Cash payments to suppliers (128,966,849) (167,746,478)
Income tax paid (1,296,182,842) (1,313,745,832)
Receipts from other operating activities 41 1,368,602,337 1,416,248,821
Payments for other operating activities 42 (2,029,750,248) (2,065,925,283)
Operating profit before changes in operating assets and liabilities 43 4,450,331,235 6,836,471,745
Increase/Decrease in operating assets and liabilities
Statutory deposits - -
Net trading securities (848,382,580) (6,032,432,643)
Investments to other Banks - -
Investment to customers (36,349,353,918) (25,614,418,696)
Other assets 44 1,216,563,089 4,067,668,995
Deposits from other Banks 2,771,192,536 (3,876,630,345)
Deposits received from customers 30,668,433,013 41,744,750,489
Other liabilities on account of customers - -
Trading liabilities - -
Other liabilities 45 1,704,042,885 1,196,634,229
Sub Total (837,504,975) 11,485,572,030
A. Net Cash flow from operating activities 3,612,826,261 18,322,043,775
Proceeds from sale of securities - -
Payment for purchases of securities - -
Proceeds from sale of fixed assets - -
Purchases of property, plant & equipment's (1,325,459,546) (353,731,874)
Purchase/Sale of subsidiaries - -
B. Net Cash flows from investing activities (1,325,459,546) (353,731,874)
Receipts from issue of debt instruments - (8,000,000,000)
SIBL Mudaraba Subordinated Bond (1,400,000,000) (1,400,000,000)
SIBL mudaraba perpetual bond 1,500,000,000
Receipts from issue of right shares/ordinary share - -
Dividend paid in cash (446,670,678) -
C. Net Cash flow from financing activities (346,670,678) (9,400,000,000)
D. Net increase/(decrease) in cash & cash equivalents (A+B+C) 1,940,696,037 8,568,311,900
E. Effects of exchange rate changes on cash & cash equivalents 37,251,544 54,445,609
F. Cash and cash equivalents at the beginning of the year 42,097,164,021 33,474,406,512
G. Cash and cash equivalents at the end of the year (D+E+F) 46 44,075,111,603 42,097,164,021
Net Operating Cash Flow Per Share (NOCFPS) (prior year restated) 39(ii) 3.85 19.53

Dhaka, Bangladesh
Date: 03.05.2021

STATEMENT OF CHANGES IN EQUITY
(Amount in Taka)
Share General Asset
Statutory Retained
Particulars Paid-up Capital Premium / Other Revaluation Total
Reserve Earnings
Account Reserves Reserve
1 2 3 4 5 6 7 8=(2+3+4 +5+6+7)
Balance as at 01 January 2020 8,933,413,560 - 6,422,261,269 - 931,379,261 984,276,383 17,271,330,473
Changes in Accounting Policy - - - - - - -
Restated Balance - - - - - - -

Surplus / (Deficit) on account of Revaluation of Properties - - - - (337,208,183) - (337,208,183)
Surplus / (Deficit) on account of Revaluation of Investment - - - - - - -
Currency translation Difference - - - - -
Net gain and losses not recognized in the Income Statement - - - - - - -
Net profit for the year - - - - - 1,550,935,483 1,550,935,483
Appropriation made during the year 608,129,552 - - (608,129,552) -
Dividend:
Cash dividend - - - - - (446,670,678) (446,670,678)
Bonus Shares 446,670,670 - - - - (446,670,670) -
Transferred to retained earnings - - - - (23,029,023) 23,029,023 -
Total shareholders' equity as on 31 December 2020 9,380,084,230 - 7,030,390,821 - 571,142,055 1,056,769,989 18,038,387,095
Eligible Capital Under Basel III: 9,380,084,230 7,030,390,821 - 1,056,769,989 17,467,245,040
Add: SIBL Mudaraba Perpetual Bond 1,500,000,000
Total shareholders' equity as on 31 December 2019 8,933,413,560 - 6,422,261,268 - 931,379,261 984,276,383 17,271,330,473
Eligible Capital Under Basel III: 8,933,413,560 6,422,261,269 - 984,276,383 16,339,951,211

Dhaka, Bangladesh
Date: 03.05.2021
LIQUIDITY STATEMENT
ASSETS AND LIABILITIES ANALYSIS
(amount in Taka)
More than 05 Total Current Total Previous
Particulars Upto 01 Month 01-03 Months 03-12 Months 01-05 Years
years Year Year
1 2 3 4 5 6 7=(2+3+4+5+6) 8
Assets
Cash in hand 21,459,001,438 - - - 11,914,481,000 33,373,482,438 31,898,442,122
Balance with other Banks and Financial
733,540,816 3,767,292,855 - - - 4,500,833,672 3,372,652,600
Institutions
Placement with Banks & other Financial
3,635,000,000 2,354,400,000 25,000,000 186,395,494 - 6,200,795,494 6,826,069,299
Institutions
Investment (in Shares & Securities) 4,955,117,669 250,000,000 7,700,000,000 4,972,981,048 609,268,945 18,487,367,661 17,638,985,081
Investments 35,752,994,623 64,247,337,188 125,502,816,755 62,813,150,000 12,301,645,000 300,617,943,566 264,268,589,649
Fixed Assets including premises,
- - - 2,215,505,088 2,215,505,088 4,431,010,176 3,606,049,743
furniture & fixtures etc.
Other Assets 33,610,312 239,242,987 1,614,095,746 5,035,328,635 10,466,000,173 17,388,277,852 17,445,443,133
Non-Banking Assets - - - - - - -
Total Assets 66,569,264,859 70,858,273,031 134,841,912,500 75,223,360,264 37,506,900,206 384,999,710,859 345,056,231,627
Liabilities
Placement from Banks & other financial
- - - - - - -
institutions
Deposits and other accounts 65,104,235,921 69,471,645,122 130,478,500,349 45,277,361,980 12,051,767,194 322,383,510,566 287,936,655,109
Provision and other liabilities 61,028,516 45,892,125 1,789,913,000 21,971,854,276 20,270,918,424 44,139,606,343 39,754,428,531
Deferred tax liability - - - 438,206,855 - 438,206,855 93,817,514
Total Liabilities 65,165,264,438 69,517,537,248 132,268,413,350 67,687,423,111 32,322,685,618 366,961,323,764 327,784,901,154
Net Liquidity Gap 1,404,000,421 1,340,735,783 2,573,499,151 7,535,937,153 5,184,214,588 18,038,387,095 17,271,330,473


Dhaka, Bangladesh
Date: 03.05.2021
NOTES TO THE FINANCIAL STATEMENTS
AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2020
1 THE BANK AND ITS ACTIVITIES
1.1 Status of the Bank

The Bank was incorporated as a Public Limited Company in Bangladesh on 22nd November 1995 under Companies Act,
1994. The Bank is one of the interest-free Shariah based Banks in the country and its modus- operandi are substantially
different from other conventional Banks. The Bank within the stipulations laid down by Bank Company Act, 1991 (as amended
in 2018) and directives as received from time to time from Bangladesh Bank, provides all types of commercial Banking
services. Besides as a matter of policy the Bank conducts its business on the principles of Mudaraba, Musharaka, Murabaha,
Bai-Muazzal and Hire Purchase transaction approved by Bangladesh Bank. The Bank is listed with Dhaka Stock Exchange
Limited and Chittagong Stock Exchange Limited as a publicly traded Company. The Bank carries its Banking activities
through one hundred sixty eight (168) branches operating as per Islamic Shariah prevailing in the country.
The Registered Office of the Bank is located at its own premises at ‘City Center’, 90/1 Motijheel Commercial Area, Dhaka-1000.
1.2 Internet Banking services

SIBL has been providing anytime anywhere Banking service (24/7/365) through internet Banking since 2013. Recently, SIBL
reshaped its internet Banking service with user friendly features like with a wide range of features as balance inquiry, fund
transfer, credit card bill payment, bill payment, and statement view options. SIBL has introduced “SIBL NOW” mobile app to
facilitate i-Banking services in the palm of hand. “SIBL NOW” internet Banking and mobile app comes up with various features
including fund transfer (same Bank, other Bank, bKash), utility bill payment, mobile recharge, credit card bill payment,
viewing transaction history, location view of branches/booths etc over the internet.
1.3 Agent Banking services

The Bank started operation of Agent Banking Services in 2015.
The principal activities of the Agent Banking Services are to provide Banking services to the Bank customers through
engagement of agents who conducts Banking Transaction on behalf of the Bank under a valid agency agreements rather than
Bank’s own Tellers/Cashiers to deliver the services within the applicable rules & regulations and guidelines of Bangladesh
Bank.
1.4 Enlistment with the stock exchanges

The Bank subscribed for IPO (Initial Public Offering) in the year 2000 and initially listed with Dhaka Stock Exchange (DSE) Ltd.
and later on in the year 2005 with Chittagong Stock Exchange (CSE) Ltd.
Subsidiaries of SIBL:
1.5 SIBL Securities Limited
SIBL Securities Limited, a wholly owned subsidiary of SIBL, was incorporated as a Public Limited Company under the
Companies Act,1994 vide certification of incorporation no. C - 85876/10 dated 20 July 2010 and obtained its certificate of
commencement of business on the same day. The Company has already got it license for trading with Dhaka Stock Exchange
(DSE) and Chittagong Stock Exchange (CSE). The Company started its commercial operation in the month of January 2012.
The principal place of business is the Registered Office at 3rd floor, 15 Dilkusha C/A, Dhaka-1000.
The principal objectives of the Company for which it was established are to carry on the business of stock brokers, dealers
in relation to shares and securities dealings and other services as mentioned in the Memorandum and Articles of Association
of the Company.
1.6 SIBL Investment Limited

SIBL Investment Limited, a wholly owned subsidiary of SIBL, was incorporated as a Public Limited Company under the
Companies Act, 1994 vide certification of incorporation no. C - 86726/10 dated 30 August 2010 and obtained its certificate
of commencement of business on the same day.

The principal objectives of the Company for which it was established are to carry on the business of stock brokers, dealers
in relation to shares and securities dealings, to underwrite, manage and distribute the issue of stocks etc. and other services
as mentioned in the Memorandum and Articles of Association of the Company.
Paid up Capital Percentage of Share Holding

Name of the Company
(Taka) SIBL Others
1 SIBL Securities Limited 1,230,000,000 99.999902% 0.000098%
2 SIBL Investment Limited 250,000,000 99.99968% 0.00032%
Total capital 1,480,000,000
1.7 Off-shore Banking unit (OBU)

Bangladesh Bank approved operation of Off-Shore Banking Unit (OBU) of Social Islami Bank Limited located at head office,
through their letter no. BRPD(P-3)744(119)/2010-4652, Dated: 11.11.2010. The Bank has commenced the operation of its
Off-Shore Banking Unit (OBU) from 02.05.2012.
The principal activities of the OBUs are to provide commercial banking services through its Units within the rules & regulations
and guidelines of Bangladesh Bank applicable for the Off-shore Banking Units.
1.8 Compliance of International Accounting Standards (IAS) and International Financial Reporting standards (IFRS):
In compliance with IAS No. Status
Presentation of Financial Statements 1 Applied
Inventories 2 N/A
Statement of Cash Flows 7 Applied
Accounting Policies, Changes in Accounting Estimates
8 Applied
and Errors
Events After the Reporting Period 10 Applied
Income Taxes 12 Applied
Property, Plant and Equipment 16 Applied
Employee Benefits 19 Applied
Accounting for Government Grants and Disclosure of
20 N/A
Government Assistance
The Effects of Changes in Foreign Exchange Rates 21 Applied
Borrowing Costs 23 N/A
Related Party Disclosures 24 Applied
Accounting and Reporting by Retirement Benefit Plans 26 N/A
Applied with in compliance with related
Consolidated and Separate Financial Statements 27
BRPD Circular
Investments in Associates 28 N/A
Applied with in compliance with related
Financial Instruments: Presentation 32
BRPD Circular
Earnings Per Share 33 Applied
Interim Financial Reporting* 34 Applied
Impairment of Assets 36 Applied
Provisions, Contingent Liabilities and Contingent Assets 37 Applied
Intangible Assets 38 Applied
Investment Property 40 N/A
Agriculture 41 N/A

In compliance with IFRS No. Status
First-time Adoption of International Financial Reporting
1 N/A
Standards
Share-based Payment 2 N/A
Business Combinations 3 Applied
Insurance Contracts 4 N/A
Non-current Assets Held for Sale and Discontinued
5 N/A
Operations
Exploration for and Evaluation of Mineral Assets 6 N/A
Applied to the extent of compliance
Financial Instruments: Disclosures 7 with core risk management guideline of
Bangladesh Bank.
Operating Segments 8 Applied
Applied to the extent of compliance with
(Financial Instruments) which is mandatorily
effective for periods beginning on or after 1
January 2019 with early adoption permitted
Financial Instruments 9 (subject to local endorsement requirements.
Applied to the context of compliance with
BRPD circular no. 15, Dated: 09.11.2009,
DOS circular no. 5, Dated: 26.05.2008 and
DOS circular no. 5, Dated:28.01.2009.
Consolidated Financial Statements 10 Applied
Joint Arrangements 11 N/A
Disclosure of Interests in other Entities 12 Applied
Fair Value Measurement 13 Applied
Regulatory Deferral Accounts 14 N/A
Revenue from Contracts with customers 15 Applied
Leases IFRS -16 16 Applied
(*) Complied while the quarterly and half-yearly interim financial reports were prepared during the year as per
regulations of Bangladesh Securities and Exchange Commission (BSEC).
2 BASIS OF PRESENTATION OF FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES
2.1 Changes in significant accounting policies

Except for the changes below, the Bank has consistently applied the accounting policies to all periods presented in these
financial statements.
IFRS 16 is effective for annual periods beginning on or after 1 January 2019. The Bank has initially adopted IFRS 16 Leases
from 1 January 2020. IFRS 16 introduced a single, on-balance sheet accounting model for lessees. As a result, the Bank
as a lessee, has recognised right-of-use assets representing its’ rights to use the underlying assets and lease liabilities
representing its obligation to make lease payments. Lessor accounting remains similar to previous accounting policies. The
Bank has applied IFRS 16 using the modified retrospective approach, under which the cumulative effect of initial application
is recognised at 1 January 2020. Accordingly, the comparative information presented for the year ended 31 December 2019
has not been restated – i.e. it is presented, as previously reported, under IAS 17 and related interpretations.
2.2 Basis of preparation of the financial statements
2.2.1 Basis of accounting

The financial statements of the Bank have been prepared under historical cost convention except investments which are
measured at present value and in accordance with “First Schedule” of the Bank Company Act, 1991 as amended under
sub-section 38(4) of the Act, relevant Bangladesh Bank Circulars and International Financial Reporting Standards (IFRSs)
adopted by the Institute of Chartered Accountants of Bangladesh (ICAB), the Companies Act, 1994, the Securities and
Exchange Rules, 1987 and other rules and regulations applicable for Banks in Bangladesh.
In cases, any requirement of provisions and circulars issued by Bangladesh Bank differs with those of other regulatory
authorities, the provisions & circulars issued by Bangladesh Bank prevailed.

2.2.2 Going concern estimation
The Financial Statements, namely, Balance Sheet, Profit and Loss Account, Cash Flow Statements, Statement of Changes in
Equity, Statement of Liquidity Analysis and relevant notes to the financial statements and disclosures thereto, of the Bank are
prepared under historical cost convention on a going concern basis. Management of the Bank has made an estimation that
there are no possibility to liquidate the entity or to cease trading, or has no realistic alternative but to do so.
2.2.3 Statement of compliance

The Financial Reporting Act 2015 (FRA) was enacted in 2015. Under the FRA, the Financial Reporting Council (FRC) is
formed and it is yet to issue financial reporting standards for public interest entities such as Banks. The Bank Company Act
1991 obliges Banks to prepare their financial statements under such financial reporting standards. Due to unavailability of
any financial reporting standards by FRC, International Financial Reporting Standards (IFRS) as approved by the Institute of
Chartered Accountants of Bangladesh (ICAB) are still applicable.
Accordingly, the financial statements of the Bank continue to be prepared in accordance with International Financial Reporting
Standards (IFRS) and the requirements of the Bank Company Act 1991, the rules and regulations issued by Bangladesh
Bank (BB), the Companies Act 1994, Securities and Exchange Rules 1987. In case any requirement of the Bank Company
Act 1991, and provisions and circulars issued by Bangladesh Bank differ with those of IFRS, the requirements of the Bank
Company Act 1991, and provisions and circulars issued by Bangladesh Bank shall prevail.
According to BRPD circular no 2 dated 25 February 2019 financial statements for the Bank is prepared on a solo basis
from 2019 where OBU information is included in equivalent BDT denomination. However key financial informations of OBU
is provided as “Annexure G” the solo financial statements of the Bank. Material deviations from the requirements of IFRS in
preparing the financial statemets are as follows:
i Presentation of financial statements

IFRS: As per IAS 1, a complete set of financial statements comprises a statement of financial position, a statement of profit
or loss and other comprehensive income, a statement of changes in equity, a statement of cash flows, notes comprising a
summary of significant accounting policies and other explanatory information and comparative information. IAS 1 has also
stated the entity to disclose assets and liabilities under current and non-current classification separately in its statement of
financial position.
Bangladesh Bank: A format of financial statements (i.e. balance sheet, profit and loss account, cash flows statement,
changes inequity, liquidity statement) is prescribed in the “First Schedule” of section 38 of the Bank Company Act 1991
(amended up to 2018) and BRPD circular no. 15 dated 09 November 2009 of Bangladesh Bank. Assets and liabilities are not
classified under current and non-current heading in the prescribed format of financial statements.
ii Investment in shares and securities

IFRS: As per requirements of IFRS 9, classification and measurement of investment in shares and securities will depend
on how these are managed (the entity’s business model) and their contractual cash flow characteristics. Based on these
factors it would generally fall either under “at fair value through profit or loss account” or under “at fair value through other
comprehensive income” where any change in the fair value (as measured in accordance with IFRS 13) at the year-end is
taken to profit and loss account or other comprehensive income respectively.
Bangladesh Bank: As per Banking Regulation and Policy Department (BRPD) circular no. 15 dated 09 November 2009
investments in quoted shares and unquoted shares are revalued at the year end at market price and as per book value of
last audited balance sheet respectively. Provision should be made for any loss arising from diminution in value of investment;
otherwise investments are recognised at cost.
iii Provision on investments and off balance sheet

IFRS: As per IFRS 9 an entity shall recognise an impairment allowance on advances based on expected credit losses. At each
reporting date, an entity shall measure the impairment allowance for advances at an amount equal to the lifetime expected
credit losses if the credit risk on these advances has increased significantly since initial recognition whether assessed on
an individual or collective basis considering all reasonable information, including that which is forward-looking. For those
advances for which the credit risk has not increased significantly since initial recognition, at each reporting date, an entity
shall measure the impairment allowance at an amount equal to 12 month expected credit losses that may result from default
events on such advances that are possible within 12 months after reporting date.
Bangladesh Bank: As per BRPD circular No.24 (17 November 2019), BRPD circular No.6 (19 May 2019), BRPD circular
No.4 (16 May 2019), BRPD circular No.3 (21 April 2019), BRPD circular No.15 (27 September 2017), BRPD circular No.16 (18
November 2014), BRPD circular No.14 (23 September 2012), BRPD circular No. 19 (27 December 2012), BRPD circular No.
05 (29 May 2013) and BRPD circular No.1 (20 February 2018) a general provision at 0.25% to 5% under different categories
of unclassified advances (good/standard) has to be maintained regardless of objective evidence of impairment. Also specific
provision for sub-standard advances, doubtful advances and bad losses has to be provided at 5%, 20%, 50% and 100%
respectively for advances depending on time past due. Again as per BRPD circular no. 10 dated 18 September 2007 and
BRPD circular no. 14 dated 23 September 2012, a general provision at 1% is required to be provided for all off-balance sheet
exposures. Such provision policies are not specifically in line with those prescribed by IFRS 9.

iv Recognition of profit in suspense and compensation
IFRS: Advances to customers are generally classified at amortised cost as per IFRS 9 and profit on advance is calculated
by using the effective profit rate method to the gross carrying amount over the term of the advance. Once an advance
subsequntly become credit-impaired, the entity shall apply the effective profit rate to the amortised cost of these advances.
Bangladesh Bank: As per BRPD circular no. 15 dated 09 November 2009, once an advance is classified as impaired, profit
on such advance are not allowed to be recognised as income, rather the corresponding amount needs to be credited to an
profit in suspense account, which is presented as a liability in the balance sheet.
v Other comprehensive income

IFRS: As per IAS 1 Other Comprehensive Income (OCI) is a component of financial statements or the elements of OCI are to
be included in a single other comprehensive income statement.
Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which will strictly be followed by all
Banks. The templates of financial statements issued by Bangladesh Bank neither include Other Comprehensive Income nor
are the elements of Other Comprehensive Income allowed to be included in a single other Comprehensive Income (OCI)
Statement. As such the Bank does not prepare the other comprehensive income statement. However, elements of OCI, if any,
are shown in the statement of changes in equity.
vi Financial instruments – presentation and disclosure

In several cases Bangladesh Bank guidelines categorise, recognise, measure and present financial instruments differently
from those prescribed in IFRS 9. As such full disclosure and presentation requirements of IFRS 7 and IAS 32 cannot be made
in the financial statements.
vii Financial guarantees

IFRS: As per IFRS 9, financial guarantees are contracts that require the issuer to make specified payments to reimburse the
holder for a loss it incurs because a specified debtors fails to make payment when due in accordance with the original or
modified terms of a debt instrument. Financial guarantee liabilities are recognised initially at their fair value plus transaction
costs that are directly attributable to the issue of the financial liabilities. The financial guarantee liability is subsequently
measured at the higher of the amount of loss allowance for expected credit losses as per impairment requirement and the
amount initially recognised less, income recognised in accordance with the principles of IFRS 15. Financial guarantees are
included within other liabilities.
Bangladesh Bank: As per BRPD 15, financial guarantees such as letter of credit and letter of guarantee will be treated as
off-balance sheet items. No liability is recognised for the guarantee except the cash margin. As per BRPD Circular No.01
dated 03 January 2018 and BRPD Circular No.14 dated 23 September 2012, the Bank is required to maintain provision at 1%
against gross off-balance sheet exposures (which includes undrawn investment commitments).
viii Cash and cash equivalents

IFRS: Cash and cash equivalent items should be reported as cash item as per IAS 7.
Bangladesh Bank: Some cash and cash equivalent items such as money at call on short notice, treasury bills with maturity
of more than three months and prize bond are not shown as cash and cash equivalents. Money at call on short notice is
shown separately in the balance sheet. Treasury bills with maturity of more than three months and prize bond are shown under
investment in the balance sheet.
ix Non-Banking assets
IFRS: No indication of Non-Banking assets is found in any IFRS.
Bangladesh Bank: As per BRPD 15, there is a separate balance sheet item named Non-Banking assets existed in the
standard format.
x Cash flow statement

IFRS: The cash flow statement can be prepared using either the direct method or the indirect method as per IAS 7. The
presentation is selected to present these cash flows in a manner that is most appropriate for the business or industry. The
method selected is applied consistently.
Bangladesh Bank: As per BRPD 15, the cash flow statement is a mixture of both the direct and the indirect methods.
xi Balance with Bangladesh Bank: (Cash Reserve Ratio - CRR)

IFRS: CRR maintained with Bangladesh Bank should be treated as other asset as it is not available for use in day to day
operations as per IAS 7.
Bangladesh Bank: Balance with Bangladesh Bank including CRR is treated as cash and cash equivalents.

xii Presentation of intangible assets
IFRS: Intangible assets must be identified and recognised, and the disclosure must be given as per IAS 38.
Bangladesh Bank: There is no regulation for intangible assets in BRPD 15.
xiii Off-balance sheet items

IFRS: As per IFRS, there is no requirement for disclosure of off-balance sheet items on the face of the balance sheet.
Bangladesh Bank: As per BRPD circular no. 15 dated 09 Novemebr 2009, off balance sheet items (e.g. Letter of credit, Letter
of guarantee etc.) must be disclosed separately on the face of the balance sheet.
xiv As per IFRS 9 Investments net off provision

IFRS: Investments should be presented net of provision.
Bangladesh Bank: As per BRPD 15, provision on investments are presented separately as a liability and cannot be netted
off against investments.
xv Charges on tax on retained earnings as per income tax ordinance (ITO) 1984
As per section 16(G) of the income tax ordinance 1984, proposed dividend of Listed companies should be disclosed in the
Balance sheet as “amount to be distributed as dividend.” However there is no such provision in BRPD 14 dated 25 June 2003
and BRPD 15 dated 09 November 2009 and IFRS restrict such presentation in the balance sheet.
xvi Comparative information of changes in equity

IFRS: As per IAS 1, Comparative information in to be provided with the financial statements.
Bangladesh Bank: As per BRPD 15, no comparative is suggested for statements changes in equity.
xvii Revaluation gains/losses on government securities

SIBL is a Bank running on Islamic Shariah principle. Hence, we do not participate in buying interest bearing Government
securities.
xviii Disclosure of appropriation of profit

IFRS: There is no requirement to show appropriation of profit in the face of statement of comprehensive income.
Bangladesh Bank: As per BRPD circular no. 15 dated 09 November 2009 an appropriation of profit should be disclosed in
the face of profit and loss account.
xix Recognition of Profit in Suspense

IFRSs:: Investment to customers are generally classified as “Loans and receivables” as per IFRS 9 and profit income is
recognised through effective profit rate method over the term of the Investment. Once an investment is impaired, investment
income is recognised in profit and loss account on the same basis based on revised carrying amount.
Bangladesh Bank: As per BRPD Circular No. 15 dated 09 November 2009, once an investment is classified , profit on such
investment are not allowed to be recognised as income, rather the corresponding amount needs to be credited to an profit in
suspense account, which is presented as liability in balance sheet.
2.2.4 Investment in shares and securities

The Bank investment in different securities has been valued on 31.12.2020 as under:
Quoted Bond & Shares At fair value through profit and loss account
Unquoted Shares At cost
Bangladesh Govt. Islamic Bond At cost
CDBL Share & Preference Share At cost
All investment in securities are initially recognized at cost, including acquisition charges associated with the investment.
Premiums are amortised and discounts are accredited.

As per BRPD circular no. 15 (09 November 2009), investments in quoted shares and unquoted shares are revalued at the
year end at market price and as per book value of last audited balance sheet respectively. Provision should be made for any
loss arising from diminution in value of investment. As such the Company measures and recognizes investment in quoted
and unquoted shares at cost if the year–end market value (for quoted shares) and book value (for unquoted shares) are
higher than the cost. However as per requirements of International Financial reporting Standards (IFRS)- 9, classification
and measurement of investment in equity investments (shares and securities) depends on how these are managed (the
entity’s business model) and their contractual cash flow characteristics. Based on these factors, it would it would generally
fall either under ‘at fair value through profit and loss account (FVTPL)’ or under ‘at fair value through other comprehensive
income (FVTOCI)’ (as measured in accordance with IFRS 13) at the year-end is taken to profit and loss account or other
comprehensive income respectively. SIBL recognises its ‘Investment in Shares and Securities’ as per IFRS-9 and accounted
for the required profit/(loss) after adjustment of the value of shares and securities through profit and loss account.
Derivatives
A derivative is an investment instrument that consists of a contract between parties whose value derives from and depends
on the value of an underlying financial asset. In short, these are the instruments whose value depends on underlying asset.
The underlying asset can be equity, index, commodity, bond or currency. Some of the examples of Derivatives are Forwards,
Futures, Options and Swaps. As a shariah based Islami Bank, SIBL can not take part in issuing or purchasing any derivatives.
Typical examples of derivatives are futures and forward, swap and option contracts. As a shariah based Islami Bank, SIBL
can not take part in issuing or purchasing any derivatives.
2.2.5. Investments and provisions

In accordance with IFRS 9, Financial Instruments, with the exception of purchased or originated credit (invesment) impaired
financial assets , expected credit (investment) losses are required to be measured through a loss allowance at an amount equal
to the 12-month expected credit (invesment)in losses (expected credit (invesment) losses that result from those default events
on the financial instrument that are possible within 12 months after the reporting date; or full lifetime expected credit (invesment)
losses (expected credit /invesment losses that result from all possible default events over the life of the financial instrument).
A loss allowance for full lifetime expected credit (invesment) losses is required for a financial instrument if the credit
(invesment)risk of that financial instrument has increased significantly since initial recognition, as well as to contract assets
or trade receivables that do not constitute a financing transaction in accordance with IFRS 15. Additionally, entities can
elect an accounting policy to recognise full lifetime expected losses for all contract assets and/or all trade receivables that
do constitute a financing transaction in accordance with IFRS 15. The same election is also separately permitted for lease
receivables. For all other financial instruments, expected credit (invesment) losses are measured at an amount equal to the
12-month expected credit (investment) losses.
However, Provision for classified and unclassified investment is made on the basis of year end review by the management
and of instructions contained in Bangladesh Bank BRPD circular No. 24 (17 Novemeber 2019), BRPD circular No.6 (19 May
2019), BRPD circular No. 4 (16 May 2019), BRPD circular No.3 (21 April 2019), BRPD circular No.1 (20 February 2018), BRPD
circular No.15 (27 September 2017), BRPD circular No.16 (18 November 2014), BRPD circular No.14 (23 September 2012),
BRPD circular No. 19 (27 December 2012), BRPD circular No. 05 (29 May 2013), BRPD circular No.16 (21 July 2020), BRPD
circular No. 52 (20 October 2020) and BRPD circular No. 56 (10 December 2020) is specified at the following rates:
Particulars Rate
General Provision on Contingent Liability/ Non Funded Business 1%
General Provision on Unclassified Investment 1%
General Provision on Investment for Small and Medium Enterprise 0.25%
General Provision on Investment for Professionals 2%
General Provision on Investment for Share 2%
General Provision on Investment for House Financing 1%
General Provision on Investment for Consumer Financing 5%
General Provision on Investment for Short term Agri/ Micro credit 1%
General Provision on Special Mention Account 0.25%-5%
Specific Provision on Substandard Investment 5%, 20%
Specific Provision on Doubtful Investment 20%, 50%
Specific Provision on Bad or Loss Investment 100%
Specific Provision on Substandard Investment for Short term Agri/ Micro credit 5%
Specific Provision on Doubtful Investment for Short term Agri/ Micro credit 5%
Specific Provision on Bad or loss Investment for Short term Agri/ Micro credit 100%
Special General Provision-Covid 19 for all deferred facility investments 1%
As per same circulars mentioned above SIBL has to maintain provision @ 20%, 50% and 100% for investments classified as
sub-standard, doubtful and bad & loss category respectively depending on the duration of overdue.
As per BRPD Circular No.: 10 (18 September 2007) and BRPD Circular No.: 14 (23 September 2012), a general provision at
1% is required to be provided for all off-balance sheet risk exposures.
However, such general provision on general investment & off-balance sheet exposures and specific provisions on classified
investments cannot satisfy the conditions of provision as per relevant IFRS or IAS.

2.2.6. Off-balance sheet items
Contingent liabilities
In accordance with IFRS, there is no requirement to disclose off-balance sheet items on the face of the balance sheet.
Any possible obligation that arises form past events and the existence of which will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within the control of the Bank; or
Any present obligation that arises from past events but is not recognised because:
* it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
* the amount of the obligation cannot be measured with sufficient reliability.
Contingent liabilities are not recognised but disclosed in the financial statements unless the possibility of an outflow of
resources embodying economic benefits is reliably estimated. Contingent assets are not recognised in the financial
statements as this may results in the recognition of income which may never be realised. However, the amount of cash margin
is recognised as liability.
As per BRPD Circular No.: 15, contingent liabilities are recognised as off balance sheet items in absence of any recommendation
in IFRS.
2.3 Consolidation procedures (IAS-27)

The consolidated financial statements include the financial statements of Social Islami Bank Limited and its two (2) subsidiaries
SIBL Securities Limited and SIBL Investment Limited, made up to the end of the financial year.
The consolidated financial statements have been prepared in accordance with International Accounting Standard (IAS) 27:
Separate Financial Statements, International Financial Reporting Standards (IFRS):3- Business Combinations and International
Financial Reporting Standards (IFRS):10- Consolidated Financial Statements. The consolidated financial statements are
prepared to a common financial period ended 31 December 2020.
2.4 Measurement of elements in the financial statements

Measurement is the process of determining the monetary amounts at which the elements of the financial statements are to be
recognized and carried in the financial statements. The measurement basis adopted by the Bank is historical cost except for
land, building and few of the financial assets which are stated in accordance with the policies mentioned in the respective
notes.
2.5 Subsidiary
Subsidiary is that enterprise which is controlled by the Bank. Control exists when the Bank has the power, directly or indirectly,
to govern the financial and operating policies of an enterprise from the date that control commences until the date that control
ceases. The financial statements of subsidiary are included in the consolidated financial statements from the date that control
effectively commences until the date that the control effectively ceases. Subsidiary Company is consolidated using the
purchase method of accounting.
2.5.1 Investment in subsidiaries in the Bank separate financial statements

When the Bank prepares separate financial statements, it accounts for investments in subsidiaries at cost.
2.6 Functional and presentation currency

These financial statements are presented in Bangladesh Taka (Tk) which is the Bank’s functional currency. Except as indicated,
figures have been rounded off to the nearest Taka. The functional currency of Off-shore Banking Unit (OBU) is United States
Dollar and its financial statements have been translated to the presentation currency, i.e Bangladesh Taka following the
guidelines of IAS 21, Changes in foreign Exchange Rates.
2.7 Accounting policies, changes in accounting estimates and errors: (IAS-8)

The preparation of the consolidated financial statements in conformity with IFRSs requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised and in any future periods affected.

2.8 Foreign currency transactions /translation
Foreign currency transactions are converted into equivalent Taka currency using the ruling exchange rates on the dates of
such transaction(s).
Assets and liabilities in foreign currencies as on 31 December 2020 have been converted into Taka currency at the weighted
average of the prevailing buying and selling rate of inter-Bank market as determined by Bangladesh Bank on the closing
date of every month. Balances held in foreign currencies other than US dollar are translated into equivalent US dollar at
buying rates of New York closing of the previous day. Differences arising through buying and selling transactions of foreign
currencies on different dates during the period from January to December 2020 have been adjusted by debiting or crediting
to the Profit and Loss Account.
2.9 Comparative information and rearrangement thereof

Comparative figures have been re-arranged wherever considered necessary to ensure better comparability with the current
period without causing any impact on the profit and value of assets and liabilities as reported in the financial statements.
2.10 Adoptation of new accounting standards

The Bank has consistently applied the accounting policies as set out above to all periods presented in these financial
statements. The various amendments to standards, including any consequential amendments to other standards, with the
date of initial application of 1 January 2019 have been considered. A number of standards and amendments to standards are
effective for annual periods beginning after 1 January 2019 and earlier application is permitted. However, the Bank has not
early applied these new standards and yet assess potential impact on its financial statements.
2.10.1. IFRS 16: Leases

IFRS 16 Leases is effective for the annual reporting periods beginning on or after 1 January 2019. IFRS 16 defines that a
contract is (or contains) a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration. IFRS 16 significantly changes how a lessee accounts for operating leases. Under previous IAS
17, an entity would rent an office building or a branch premises for several years with such a rental agreement being classified
as operating lease would have been considered as an off balance sheet item. However, IFRS 16 does not require a lease
classification test and hence all leases shall be accounted for as on balance sheet item (except some limited exception i.e.
short-term lease, leases for low value items).
Under IFRS 16, an entity shall be recognizing a right-of-use (ROU) asset (i.e. the right to use the office building, branches,
service center, call center, warehouse, etc.) and a corresponding lease liability. The asset and the liability are initially measured
at the present value of unavoidable lease payments. The depreciation of the lease asset (ROU) and the interest on the lease
liability is recognized in the profit or loss account over the lease term replacing the previous heading ‘lease rent expenses’.
While implementation IFRS 16, the Bank observed that IFRS 16 is expected to have impact on various regulatory capital
and liquidity ratios as well as other statutory requirements issued by various regulators. In addition, there are no direction
from National Board of Revenue (NBR) regarding treatment of lease rent, depreciation on ROU assets and interest on lease
liability for income tax purposes and applicability of VAT on such items. Finally, paragraph 5 of IFRS 16 provide the recognition
exemptions to short-term leases and leases for which the underlying asset is of low value. Although, paragraphs B3 to B8
of the Application Guidance (Appendix B) of IFRS 16 provide some qualitative guidance on low value asset, but these
guidance is focused towards moveable asset. Immovable asset like rental of premises (i.e. real estate) is not covered on
those guidance, nor any benchmark on quantification guidance on low value items have been agreed locally in Bangladesh.
Nevertheless, as a first step the Bank has defined ‘low value asset’ which are to be excluded from IFRS 16 requirement
and considered lease of ‘ATM Booths and other installations’ as low value asset. Thereafter, the Bank has reviewed lease
arrangements for ‘office premises’ for consideration under IFRS 16.
2.10.2. IFRS 17: Insurance contracts

IFRS 17 was issued in May 2017 and applies to annual reporting periods beginning on or after 1 January 2023. IFRS 17
establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts within
the scope of the standard. The objective of IFRS 17 is to ensure that an entity provides relevant information that faithfully
represents those contracts. The Bank has not yet assessed in potential impact of IFRS 17 on its financial statements.
2.10.3 Approval of the financial statements

The Board of Directors of the Bank adopted the financial statements for the year ended 31 December 2020 as on its 463rd
board meeting held on 29 April 2021 and authorized the financial statements on 03 May 2021
2.10.4 Statement of changes in equity

The statement of changes in equity reflects information about the increase or decrease in net assets or wealth.

2.11 Liquidity statement
Liquidity Statement has been prepared based on the residual/remaining maturity of assets and liabilities as on 31 December
2020 as per the guidelines for islamic banking issued by Bangladesh Bank through BRPD Circular No. 15 dated 09.11.2009
and BRPD Circular No.14 dated 25.06.2003 as follows:
i) Balance with other banks and financial institutions, etc. are on the basis of their respective maturity term;
ii) Investments in shares & securities are on the basis of their respective maturity;
iii) General investments are on the basis of their recovery/repayment schedule;
iv) Fixed assets [property, plant & equipment] are on the basis of their useful lives;
v) Other assets are on the basis of their realization/amortization;
vi) Deposits and other accounts are on the basis of their maturity and payments;
vii) Provisions and other liabilities are on the basis of their adjustment/settlement;
viii) Due to perpetual in nature/maturity, Mudaraba Perpetual Bond (MPB) is reported under maturity more than 5 (five)
years.
ix) Mudaraba Redeemable Subordinated Bond is reported under maturity 1 (one) to 5 (five) years and more than 5 (five)
years.
2.12 Fixed assets, depreciation and revaluation (IAS-16)

Assets have been shown at cost less depreciation as per paragraph 43 of International Accounting Standard (IAS)-16
“Property, Plant & Equipments”. Depreciation has been charged on reducing balance method except motor vehicle; which
has been charged on straight-line method. Depreciation on addition of assets has been charged from the date of purchase.
Rate of depreciation are as under:
Particulars Rate (%) Estimated life(Years)

Building 2.5 40
Furniture & Fixtures 10 10
Office Equipment 20 5
Software 10 10
Vehicles 20 5
Books 10 10
Revaluation
Land and building are revalued as per International Accounting Standard (IAS)-16, ‘Property, Plant and Equipment’ as well as
Bangladesh Bank BCD circular letter no. 12 & 18, dated: 20 April 1993 & 15 June 1993, respectively and BRPD circular no.
10 and 09, Dated: 25 November 2002 and 31 December 2008.
The Bank revalued its fixed assets on 20.03.2011 by two separate valuers, namely- ‘Commodity Inspection Services (BD) Ltd.’
and ‘Royal Inspection International Ltd.’ But the effects on assets have been accounted for as on 30.03.2011.
Reserve is created by the sum of revaluation surplus and depreciation is charged on the revalued assets except land as per
the respective rate of depreciation.
2.13 Off-balance sheet exposures

In compliance with the instruction contained in BRPD Circular No. 10 dated 18 September 2007 issued by Bangladesh Bank,
provision against the off-balance sheet exposures of the Bank as at reporting date has been made as under:
Rates
Category / status of Off-balance sheet exposures Bangladesh

Maintained by the
Bank’s
Bank
requirement
General provision for Off-balance sheet exposures
All types of Off-balance sheet exposures 1.00% 1.00%

2.14 Impairment of assets (IAS-36)
The policy for all assets or cash-generating units for the purpose of assessing such assets for impairment is as follows:
The Bank assesses at the end of each reporting period or more frequently if events or changes in circumstances indicate that
the carrying value of an asset may be impaired, whether there is any indication that an asset may be impaired. If any such
indication exits, or when an annual impairment testing for an asset is required, the Bank makes an estimate of the assets
recoverable amount. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the
asset or cash-generating unit is considered impaired and is written down to its recoverable amount by debiting to profit & loss
account. Fixed assets are reviewed for impairment whenever events or charges in circumstances indicate that the carrying
amount of an asset may be impaired. However no changes have arisen during the year against impairment.
2.15 Capital/shareholders’ equity

Authorised capital
Authorised capital is the maximum amount of share capital that the Bank is authorised by its Memorandum and Articles of
Association.
Paid up capital
Paid up capital represents total amount of shareholder capital that has been paid in full by the ordinary shareholders. Holders
of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to vote at shareholders’
meetings. In the event of a winding-up of the Bank, ordinary shareholders rank after all other shareholders and creditors and
are fully entitled to any residual proceeds of liquidation. Details are shown in Note-15.2.
Statutory reserve
Statutory reserve has been maintained @ 20% of profit before tax in accordance with provisions of section 24 of the Bank
Company Act, 1991 (as amended 2018) until such reserve equal to its paid up capital together with the share premium.
2.16 Revenue recognition (IFRS-15)

(i) Investment income & revenue recognition
Profit on investments and deposits are recognized against the investment of fund under Mudaraba, Musharaka, Murabaha,
Bai-Muazzal and Hire Purchase etc. in line with related approved policy of the Board. Profit on investment ceases to be taken
into income when such investment accounts are classified. It is then kept in compensation/rent suspense account and the
same is accounted for on cash basis as and when recovered or de-classified as per related BRPD circular.
Fees and commission income are recognized when it is earned.
Income from investment in shares and securities is recognized on actual basis except Bangladesh Govt. Mudaraba Bond
income which is recognized on accrual basis.
Sharing of investment income

In case of Investment, Mudaraba fund gets preference over cost free fund. The investment income earned through deployment
of Mudaraba Fund is shared by Bank and the Mudaraba Depositors at the predetermined ratio fixed by the Bank.
(ii) Profit paid on deposits and other expenses

Profit paid on deposits and other expenses are recognized on accrual basis.
As per Mudaraba principle of Islamic Shari’ah, the Mudaraba Depositors are entitled to get minimum 65% of the investment
income earned through deployment of Mudaraba Fund as per weightage assigned to each type of Mudaraba Deposit.
Moreover, in some Mudaraba deposits, additional rate was allowed over the rate as per weightage. Mudaraba Depositors do
not share any income derived from various Banking services where the use of fund is not involved and any income derived
from Investing Bank’s Equity and other Cost Free Fund. Al-Wadeeah Depositors do not share any income of the Bank.
Profit is paid/provided to Mudaraba Deposit accounts at provisional rate on half yearly/anniversary basis considering overall
growth, performance, and profitability of the Bank during the year. Final rates of profit of any accounting year are declared
after finalization of Shari’ah Inspection Report and certifying the Investment Income of the Bank by the Statutory Auditors.

2.17 Provision for taxation (IAS-12)
(a) Current tax
Provision for income tax has been calculated as per Income Tax Ordinance, 1984 as amended by the Finance Act 2020
considering all applicable allowances and disallowances.
(b) Deferred tax

Recognition of deferred tax liabilities
The general principle in IAS 12 is that a deferred tax liability is recognised for all taxable temporary
differences. There are three exceptions to the requirement to recognise a deferred tax liability, as follows:
liabilities arising from initial recognition of goodwill, liabilities arising from the initial recognition of an asset/liability other than
in a business combination which, at the time of the transaction, does not affect either the accounting or the taxable profit,
liabilities arising from temporary differences associated with investments in subsidiaries, branches, and associates, and
interests in joint arrangements, but only to the extent that the entity is able to control the timing of the reversal of the differences
and it is probable that the reversal will not occur in the foreseeable future.
Recognition of deferred tax asset

A deferred tax asset is recognised for deductible temporary differences, unused tax losses and unused tax credits to
the extent that it is probable that taxable profit will be available against which the deductible temporary differences
can be utilised, unless the deferred tax asset arises from: the initial recognition of an asset or liability other than
in a business combination which, at the time of the transaction, does not affect accounting profit or taxable profit.
Deferred tax assets for deductible temporary differences arising from investments in subsidiaries, branches and associates,
and interests in joint arrangements, are only recognised to the extent that it is probable that the temporary difference will
reverse in the foreseeable future and that taxable profit will be available against which the temporary difference will be utilised.
The carrying amount of deferred tax assets are reviewed at the end of each reporting period and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilised.
Any such reduction is subsequently reversed to the extent that it becomes probable that sufficient taxable profit will be available.
A deferred tax asset is recognised for an unused tax loss carryforward or unused tax credit if, and only if, it is considered
probable that there will be sufficient future taxable profit against which the loss or credit carryforward can be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is
realised or the liability is settled, based on tax rates/laws that have been enacted or substantively enacted by the end of the
reporting period
The Bank has accounted for deferred tax as per International Accounting Standard (IAS)-12, “Income Taxes”.
2.18 Zakat fund

The Bank has created a Zakat Fund @ 2.58% for the period ended 31 December 2020 on reserve retained through out the
year. Hizri Calendar has been considered to calculate 2.5% of Zakat Fund. Since Hizri Calendar counts 11 days less than
the English Calendar, the percentage 2.5% represents equivalent to 2.58% of English Calendar. It is to be noted here that
shareholders should pay their individual Zakat based on face value (Taka- 10.00 per share) of their individual shareholding
along with their other zakatable assets.
2.19 Retirement benefits (IAS-19)

Defined contribution plans:
(a) Provident fund

The Bank operates a contributory provident fund duly approved by the Income Tax Authority. Both the employer and all
eligible employees contribute @ 10% of basic salary to this fund. Trustee board administers this fund.
b) Superannuation fund
The fund under the caption “Social Islami Bank Limited (SIBL) Employees’ Superannuation Fund” came into force from 01
July 1999. It was established to benefit the employees in several ways which includes death benefit, scholarship etc. All
employees contribute @1% of basic salary every month along with the same amount contribution by the Bank.
Defined benefit plans:
(a) Gratuity
As per service rules of the Bank, employee who has completed five years regular service , are eligible for yearly gratuity @ 1
(one) month basic salary for every full year of regular service and employee who has completed seven years regular service
are eligible for yearly gratuity @ 2 months basic salary for full year regular service. The Bank has complied with International
Accounting Standard (IAS) -19, “Employee Benefits” and necessary provision i.e @ 9.1% of basic salary of the regular
employees have been made as per actuary valuation of Z. Halim & Associates, Actuarial & Pension Consultants for the period
ended 31 December 2020.

2.20 Reconciliation of inter Bank / branch transactions
Books of accounts with regard to inter Bank/branch transactions (In Bangladesh and outside Bangladesh) are reconciled and
there are no material differences that may affect the financial statements significantly.
2.21 Risk management

Today’s most risky nature of Banking business has caused the Central Banks of every country much concerned about the risk
factors affecting the financial position of the Banks. In this connection every Central Banks have come forwarded to establish
a general framework to defeat the risk factors considering the laws of the land. Bangladesh Bank has also undertaken an
overall core-risk management project under which every Bank shall be bounded to the authoritative covenants to install risk
management system. Social Islami Bank Ltd. has established approved policies covering major areas such as (a) Investment
Risk Management, (b) Foreign Exchange Risk Management, (c) Asset Liability Management Risk (d) Money Laundering Risk
(e) Internal Control & Compliance Risk and (f) Information & Communication Technology Security Risk (g) Internal Audit (h)
Fraud and Forgeries according to the DOS circular no: 04 (08 October 2018) regarding ‘Risk Management Guidelines’ for
Banks, Bank Companies Act 1991 and other guidelines. of Bangladesh Bank.
In addition, the Bank is also following relevant Bangladesh Bank guidelines on risk based capital adequacy, stress testing and
managing the Banking risks in other core risk areas.
The Bank has established an independent Risk Management Division (RMD) as per DOS cirular no:04 (08 October 2018).
RMD consists of five desk i.e i) Investment Risk Related Desk; ii) Market Risk Related Desk; iii) Operational Risk Related
Desk; iv) Liquidity Risk Related Desk; v) Risk Research and Policy Desk and vi) Capital Adequacy Reporting Desk. Risk
Management Division also conducts stress testing as per DOS circular no: 01 (23 February 2011), for examining the Bank’s
capacity of handling future shocks, as well as deals with all potential risks that might occur in future.
The prime objective of the risk management is that the Bank takes well calculative business risks while safeguarding the
Bank’s capital, its financial resources and profitability from various risks. In this context, the Bank took steps to implement the
guidelines of Bangladesh Bank as under:
(a) Investment risk management

Investment risk is one of the major risks faced by the Bank. This can be described as potential loss arising from the failure of a
counter party to perform as per contractual agreement with the Bank. The failure may results from unwillingness of the counter
party or decline of financial condition. Therefore, the Bank’s investment risk management activities have been designed to
address all these issues.
The Bank has segregated duties of the Officers / Executives involved in investment related activities. A separate Corporate
Division has been formed at Head Office, which is entrusted with the duties of maintaining effective relationship with
the customer, marketing of credit products, exploring new business opportunities etc. Moreover, investment approval,
administration, monitoring and recovery functions have been segregated. For this purpose, three separate units have been
formed within the Credit Division. These are (a) Investment Risk Management Unit, (b) Investment Administration Unit and
(c) Investment Monitoring & Recovery Unit. Investment Risk Management Unit is entrusted with the duties of maintaining
asset quality, assessing risk in lending to a particular customer, sanctioning credit, formulating policy / strategy for lending
operation etc.
A thorough assessment is done before sanctioning of investment facility at Investment Risk Management Unit. The risk
assessment includes borrower risk analysis, financial analysis, industry analysis, historical performance of the customer,
security of the proposed credit facility etc. The assessment process starts at Corporate Division by the Relationship Manager/
Officer and ends at Investment Risk Management Unit when individual executives. Proposal beyond their delegation are
approved / declined by the Executive Committee and / or the Management.
In determining single borrower / large investment limit, the Bangladesh Bank instructions are strictly followed. Internal audit
is conducted on periodical interval to ensure compliance of Bank’s and regulatory policies. Investments are classified as per
Bangladesh Bank’s guidelines.
(b) Foreign exchange risk management

Foreign Exchange risk is defined as the potential change in earnings arising due to change in market prices. The foreign
exchange risk of the Bank is minimal as all the transactions are carried out on behalf of the customers against underlying L/C
commitments and other remittance of single borrower limit shown in note.
International Department independently conducts the transactions relating to foreign exchange and is responsible for
verification of the deals and passing of their entries in the books of account. All foreign exchange transactions are revalued at
Mark-to-market rate as determined by Bangladesh Bank at the month end. All NOSTRO Accounts are reconciled on monthly
basis and the management for its settlement reviews outstanding entry beyond 30 days.

(c) Asset liability management risk
Asset Liability Management (ALM) has been defined as a planned, structured and systematic process of managing the asset
and liability with a view to lead the Bank to a balanced and sustainable growth through minimizing various business risk factors
- market risk and liquidity risk. According to the Bangladesh Bank guidelines and considering the most practical aspects of
the Bank, an approved policy manual on ALM has been prepared so that it could be followed consistently every sphere of the
management. To support the ALM process, the Bank has established a committee called “Asset Liability Committee (ALCO)”
headed by the Managing Director and holds meeting at least one in every month. ALM Desk, an exclusive functional and
operational desk for the asset liability management, is embodied herewith the ALCO to function under the direct control of
Financial Administration Division (FAD).
ALCO reviews the liquidity requirement of the Bank, the maturity of assets and liabilities, deposit and lending, pricing strategy
and the liquidity contingency plan at the threshold of stress liquidity situation. Besides that monitoring and analyzing of
significant volatility in net investment income, investment value and exchange earnings etc. are the common and regular job
of the ALM desk.
(d) Money laundering risk

Social Islami Bank Limited (SIBL) has framed an approved Money Laundering Prevention Policy Guideline so that it could be
sufficient enough to protect the Bank from tribulations of money laundering.
As per Money Laundering Prevention Act, 2012 and Money Laundering Prevention circular, a Central Compliance Unit (CCU)
has been formed at Head Office in SIBL and a designated person has been nominated to supply any information if required
and report any abnormal and suspicious transactions to Bangladesh Bank through CCU. Chief Anti Money Laundering
Compliance Officer (CAMALCO) has been designated at head office and Branch Anti Money Laundering Compliance Officers
(BAMALCO) has been nominated at branches. The second man of the sixty-four branches of SIBL has been complying the
responsibility for their respective branches as Branch Anti Money Laundering Compliance Officers (BAMALCO) as per the
direction of Bangladesh Bank.
Know Your Customer (KYC) profile, Risk Rating and Assessment (RRA) profile and Transaction Profile (TP) have been
introduced as per the direction of Bangladesh Bank. These profiles facilitate and ease the KYC procedures, risk categorization,
transaction monitoring process, suspicious activity reporting process, self-assessment process, independent procedures
testing system etc. Proper record keeping procedure has been established also.
The action plan regarding the KYC procedures of those accounts, which opened before 30-04-2002 already has been sent
to the Bangladesh Bank. The branches, which are liable to act in accordance with this action plan, has been complying it
properly and vigorously.
Various types of statements such as Quarterly STR, Quarterly KYC statement for legacy accounts, Bi-monthly statements etc
has been sent to the Bangladesh Bank properly. “ FIU Reporting System “ Version-1.0.3 Software has been installed all of the
branches as per the direction of central Bank. As a result, the soft copy of Cash Transaction Report (CTR) and Suspicious
Transaction Report (STR) has been sent to Bangladesh Bank properly in due time.
The training procedure has been conforming as per the action plan, which was given to Bangladesh Bank. It provides
significant role to develop and to aware the staffs of SIBL about Anti Money Laundering. The management of the Bank is
committed to train all of its workforces regarding anti money laundering.
(e) Internal control and compliance risk

Internal controls ensure systematic and orderly flow of various operational activities within the organization. Now a day in the
biggest and complex business environment, compliance becomes one of the major concern to the corporate being major
risk involved in non-compliance of statutory requirements and operational procedures. To protect and safeguard the Bank
form any means of fraud and error as well as loss - Social Islami Bank has introduced the “Internal control and Compliance
guideline and also established a separate department called “Internal Control and Compliance Department (ICCD)” at Head
Office staffed with some experienced senior Banker rest with the power and duties to train the employees of the Bank,
give direction, monitor, audit and establish control on day to day operational procedures and statutory and non-statutory
compliances.
ICCD collects different periodical reports, departmental control function check list etc. for documentation and also undertakes
periodical and special audit of the branches and departments at Head Office for review of the operation and compliance of
statutory requirements and the Board Audit Committee reviews the reports.

(f) Operational risk
Operational risk can be defined as the possibilities of losses resulting from inadequacy or failed internal processes, systems
and people or from external events.
Operational risk includes legal and regulatory risk, business process and change risk, fiduciary or disclosure breaches,
technology failure, financial crime and environmental risk. It exists in some form in every Bank business and function.
Operational risk can not only result in financial loss, but also regulatory sanctions and damage to the Bank’s reputation. SIBL
is successful at managing operational risk with a view to safeguarding client assets and preserving shareholder value.
SIBL manages operational risks in the following manner:

I. Risks are identified with reference to the relevant policy manuals, processes, and practices;
II. Departmental Control Function Check List (DCFCL) is in place for evaluation of control;
III. Review of safety and control measures of premises and equipments;
IV. Management of technological and information security risks; and
V. Ensuring the maintenance of the Bank’s business continuity plan (BCP) and crisis management policy.
(g) Legal risks

In SIBL, legal risks are covered by recognizing potential losses from litigation or possible litigation at an early stage and by
formulating solutions for reducing, restricting and avoiding such risks and creating adequate provision there- against.
(h) Business risk

Business risk covers the risk of losses arising from lower non-interest income and higher expenses from the budgeted amount.
The business risk is resulted from the market condition, greater customer expectation and or technological development that
may change compared to the assumptions made at the time of planning.
Business risk in SIBL is managed by setting clear targets for specific business units, in terms of business volume, income,
cost, cost-income ratio, quality of assets etc. with an ongoing process of continuous improvement.
(i) Reputational risk

Reputational risk is defined as the risk of losses, falling business volume or income as well as reduced value of the
Company arising from business events that may reduce the confidence of the customers & clients, shareholders, investors,
counterparties, business partners, credit rating agencies, regulators and general public in SIBL.
The branches and operational divisions are directly responsible for reputational risks arising from their business operations.
Reputational risks may also arise from a deficiency in managing other risks. All risk must therefore be managed effectively
in order to uphold the Bank’s reputation. The management ensures that SIBL is aware of any changes in market perceptions
as soon as possible. Accordingly, all business policies and transactions are subjected to careful consideration. SIBL takes
necessary precautions to avoid business policies and transactions that may result in significant tax, legal or environmental
risks. Reputational risk is also factored into major credit decisions that may lead to credit proposal being declined.
(j) Compliance risk

The success of SIBL is largely dependent on the trust and confidence of our existing and potential customers, our shareholders,
our staff, our regulators and the general public in our integrity and ethical standard. The confidence largely depends on
meticulous compliance with applicable legal and regulatory requirements and internal policies of SIBL. The confidence
also depends on conformity with generally accepted market norms and standards in our business operations. The Board
of Directors is primarily responsible for compliance with all applicable norms and regulations. The Board discharges its
responsibilities itself and through delegation of authorities to Executive Committee, Audit Committee and Risk Management
Committee of the Board. The objective is to identify any compliance risks at an early stage that may undermine the integrity
and the success of SIBL and to mitigate the risks in most appropriate way.
(k) Information and communication technology security risk

According to the latest requirement of the Bangladesh Bank on Core Risk Management, ICT policy guideline has been newly
introduced at Social Islami Bank. The prime objective of such guideline is to protect data properties of the Banks from any
means of loss, unauthorized use, forgery and destruction as well as documentation of all ICT related tasks to reduce man
dependency and increase process dependency. According to this guideline, ICT department responses, monitors, trains and
co-ordinates the total IT matter with other departments and branches so that man and machine could effectively co-opt on
timely fashion. The ICT department ensures necessary guidelines / instructions to the Departments / Branches and monitors
status of implementation strictly.

(l) Internal audit
The Bank initiates internal audit of the branches and head office divisions on a periodical basis, concurrent basis and surprise
inspection is also done to check the compliance status of the cost centers of the Bank. The internal audit is supervised under
ICCD and a separate division named ‘Board Audit Cell (BAC)’ also conducts internal audit under supervision and direct
authority of Board Audit Committee. This BAC directly reports to the Chairman of Board Audit Committee. This way a strong
internal audit of the cost centers as well as of Head Office Divisions are conducted to ensure all related compliance.
(m) Fraud and forgeries

Fraud and Forgeries are a critical dimension, the Banking industry is facing now a days. In order to safeguard the Bank from
all probable fraud and forgeries that may occur in any respect, the Bank has taken all possible safety security measures that
are undertaken under direct supervision of ICCD. Concurrent audit, internal audit, Board audit etc. are done periodically
along with surprise audit from time to time. Moreover, there are a lot of safety measures initiated at the branch level also. The
core Banking solution Ababil is desiged to prevent IT related fraud and forgeries.
Additional risks required to be addressed under new regulatory requirements
(n) Environmental & social risk

As one of the shariah based Banks of Bangladesh, Social Islami Bank Limited (SIBL) have adopted Environmental & Social
Risk Management (ESRM) System as one of its integral parts of Investment Risk Assessment to compute environmental &
social risks from our financial footprints. SIBL is one of the Banks operating in Bangladesh to add “Environmental & Social
Management System (ESMS)” within its framework, a global standard to minimize environmental & social risks from the
organisational activities. Risks associated with E&S Risk in Credit/Investment Management includes 1. Credit Risk, 2.Legal
Risk, 3. Operational Risk, 4. Liquidity Risk, 5. Reputational Risk etc. Applicability of the guideline includes for investments
disbursed to the sectors Agriculture, SME, Corporate Finance, Project Finance and Trade, Retail & Microfinace. All national
regulations pertaining to E&S governance is applicable while carrying out E&S due diligence of a particular transaction. This
means all relevant E&S permits, consents, licenses, and monitoring of E&S parameters as per the national regulations are to
be considered as mandatory compliance requirements for evaluation of a investment application. If clients have management
systems in place as per international frameworks such as ISO 14001 for environmental management, OHSAS 18001 for
occupational health and safety, SA8000 for socially acceptable practices in the workplace then it is considered as good
practices. Adherence to IFC Performance Standards is considered in case of large project financing as a good practice and
optional requirement.
2.22 Earnings per share (IAS-33)

Earning Per Share (EPS) has been computed by dividing the basic earning by the weighted average number of ordinary
shares outstanding at the end of the year as per IAS 33 Earning Per Share
Basic earnings
This represents earnings for the year attributable to ordinary shareholders. Net profit after tax less preference dividend has
been considered as fully attributable to the ordinary shareholders.
Weighted average number of ordinary shares outstanding during the year

This represents the numbe of ordinary shares outstanding at the beginning of the year plus the number of ordinary shares
issued during the year multipied by a time weighted factor. The time weighting factor is the number of days the specific shares
are outstanding as a protion of the total number of days in the year.
The basis of computation of number of shares is in line with the provision of IAS 33 Earning Per Share. The logic behind this
basis is that the bonus shares are issued to the existing shareholders without any consideration, and therefore, the number
of shares outstanding is increased without an increase in resources generating new earnings. In contrast, other shares were
issued against consideration in cash or in kind, and accordingly there is an increase in resource generating new earnings.
Therefore, the total number of shares issued in 2020 has been multipied by a time weighting factor which is the number of
days the specific shares were outstanding as a proportion of total number of days in the period.
2.23 Events after reporting period

As per IAS - 10 “Events after the Reporting Period” events after the reporting period are those events, favorable and
unfavorable, that occur between the end of the reporting period and the date when the financial statements are authorized for
issue. Two types of event can be identified:
(a) Adjusting events after the reporting period which provide evidence of conditions which existed at the end of the reporting
period; and
(b) Non adjusting events after the reporting period, are those that are indicative of conditions that arose after the reporting
period.
The details about the events after reporting period is shown at note - 51.

2.24 Segment reporting
As per IFRS 8 “Operating Segments”, an operating segment is a component of an entity:
(i) That engages in business activities from which it may earn revenues and incur expenses (include revenues and expenses
relating to transactions with other components of the same entity);
(ii) Whose operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions about
resources to be allocated to the segment and assess its performances, and
(iii) For which discrete financial information is available.
The Bank identifies segment based on its business segment as well as its subsidiaries. Business segment comprises SME,
Retail, Corporate and Treasury under Islamic Banking.
The Bank reviews the segments at the end of each reporting period to identify which of its segments are reportable and
disclose the related information for those reportable segments accordingly.
2.25 Asset retirement obligations (ARO)

Asset retirement obligations (ARO) are recognized when there is a legal or constructive obligation as a result of past event
for dismantling and removing an item of property, plant and equipment and restoring the site on which the item is located
and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount
of obligation can be made. A corresponding amount equivalent to the provision is also recognized as part of the cost of the
related property, plant and equipment. The amount recognized is the estimated cost of decommissioning, discounted to
its present value. Changes in the estimated timing of decommissioning or decommissioning cost estimates are dealt with
prospectively by recording an adjustment to the provision, and a corresponding adjustment to property, plant and equipment.
The periodic unwinding of the discount is recognized in the statement of profit or loss as a finance cost as it occurs.
2.26 Off-shore Banking Units (OBU)

The Off-shore Banking Units maintain its accounting records in USD from which accounts are prepared according to the
Bank Company Act, 1991 as amended, International Financial Reporting Standards (IFRSs) and other applicable directives
issued by Bangladesh Bank. All the financial statements relating to the OBU has already been accounted for in the separate
financial statements of the Bank (considering necessary adjustments relating to intra-units transactions and balances). Along
with that, this financial statements relating to OBU only is prepared and disclosed in compliance with the requirements of
Bangladesh Bank.
2.27 Dividend payments

Final dividend is recognized when it is approved by the shareholders in Annual General Meeting (AGM). The proposed
dividend for the year 2020, therefore, has not been recognized as a liability however disclosed in the balance sheet in
accordance with IAS-10 “Events after the Reporting Period”. Dividend payable to the Bank’s shareholders is recognized as
a liability and deducted from the shareholders’ equity in the period in which the shareholders’ right to receive the dividend is
established.
2.28 Other earnings

Profit received from the balances held with foreign banks and from foreign currency clearing account with Bangladesh Bank
are not credited to income, since it is not permissible as per Shari’ah. These are expended for charitable purposes after
payment of corporate income tax thereon.
2.29 Inter-branch transactions

Transactions with regard to inter-branches and units are reconciled regularly and efforts are taken to minimize the unreconciled
entries at the end of the year.

2.30 Regulatory and legal compliance
Among others, the Bank complied with the requirements of the following circular, rules and regulations:
a) The Bank Companies Act, 1991 as amended
b) The Companies Act, 1994
c) BRPD Circular No. 14 dated 25.06.2003 and “Guidelines for Islamic Banking” issued by Bangladesh Bank through
BRPD Circular No. 15 dated 09.11.2009
d) Other circulars, rules and regulations issued by Bangladesh Bank from time to time
e) The Securities and Exchange Rules, 1987
f) The Securities and Exchange Ordinance, 1969
g) The Securities and Exchange Commission Act, 1993
h) Income Tax Ordinance, 1984 as amended
i) Value Added Tax and Supplementary Duty Act, 2012
j) Standards issued by AAOIFI
k) The Stamp Act-1899
l) The Customs Act-1969
m) The Money Laundering Prevention Act, 2012
n) The Anti Terrorism (Amendment) Act, 2012 etc.
The Bank identifies segment based on its business segment as well as its subsidiaries. Business segment comprises SME,
Retail, Corporate and Treasury under Islamic Banking.
The Bank reviews the segments at the end of each reporting period to identify which of its segments are reportable and
disclose the related information for those reportable segments accordingly.
2.31 Workers profit participation fund and welfare fund

SRO-336-AIN/2010 dated 5-10-2010 issued by the ‘Ministry of Labour and Employment’ declares the status of business of
certain institutions and companies along with Bank & insurance companies as “Industrial Undertakings” for the purposes
of Chapter-XV of the Bangladesh Labour Act, 2006 (as amended up to 2013) which deals with the workers’ participation in
Company’s profit by way of ‘Workers Participation Fund’ and ‘Welfare Fund’. This Act requires the “Industrial Undertakings”
to maintain provision for workers’ profit participation fund @ 5% on net profit. Since this requirement contradicts with the
‘Section 11’ of the ‘Bank Company Act 1991 (as amended up to 2018)’, Banks in Bangladesh took up the issue collectively
and sought opinion from ‘Association of Bankers Bangladesh Limited (ABB)’ on the same. ABB wrote a letter to the ‘Ministry
of Finance’ of Government of People’s Republic of Bangladesh on 09.03.2016 to draw attention of the honorable Finance
Minister regarding relevance and applicability of Chapter XV of the Bangladesh Labour Act, 2006 (as amended up to 2013)
for Bank Companies and to obtain a direction on the issue. The ‘Ministry of Finance’ revealed their opinion that WPPF should
not be relevant for Bank Companies and therefore, it should not be applied there. They also sought for an opinion on this issue
from Bangladesh Bank. Subsequently, Bangladesh Bank agreed on all the logics and legal opinion collected by the ABB and
expressed their consensus with them on 29.11.2016. In this backdrop, the ‘Ministry of Finance’ has given their instruction,
vide letter no. 53.00.0000.311.22.002.17.130 dated 14.02.2017, for not applying Chapter XV of the Bangladesh Labour Act,
2006 (as amended up to 2013) in Bank Companies. Therefore, no provision in this regard has been made in the financial
statements for the year ended on December 31, 2019.
2.32 Related party disclosures

A party is related to the company if:
i. Directly or indirectly through one or more intermediaries, the party controls, is controlled by, or is under common control
with, the company; has an interest in the company that gives it significant influence over the company; or has joint control
over the company;
ii. The party is an associate;
iii. The party is a joint venture;
iv. The party is a member of the key management personnel of the Company or its parent;
v. The party is a close member of the family of any individual referred to in (i) or (iv);
vi.The party is an entity that is controlled, jointly controlled or significantly influenced by or for which significant voting power
in such entity resides with, directly or indirectly, any individual referred to in (iv) or (v); or
vii. The party is a post-employment benefit plan for the benefit of employees of the company, or of any entity that is a related
party of the company.

31.12.2020 31.12.2019
Taka Taka
3 Cash
In hand:
In local currency 2,492,410,437 2,662,912,406
In foreign currencies 49,036,144 27,328,950
ATM balance 431,262,467 259,028,164
2,972,709,048 2,949,269,520
In Foreign Currencies
Foreign Currency Amount in FC Exchange Rate
USD 420,099 84.80 35,624,846 20,846,750
EURO 119,965 104.14 12,493,040 6,479,937
GBP 7,980 114.79 915,999 -
S. Riyal 100 22.60 2,260 2,263
49,036,144 27,328,950
3(a) Consolidated balance of cash in hand

Social Islami Bank Limited 2,972,709,048 2,949,269,520
Cash in hand of Subsidiary companies 553,803 90,288
SIBL Securities Limited 528,602 85,087
SIBL Investment Limited 25,201 5,201
2,973,262,850 2,949,359,808
3. Balance with Bangladesh Bank and its agent Bank (Sonali Bank)
Balance with Bangladesh Bank (Note-3.1.1) 29,856,531,522 28,481,818,448
Balance with Sonali Bank (as an agent of BB) (Note-3.1.2) 544,241,868 467,354,154
30,400,773,390 28,949,172,602
3.1.1 Balance with Bangladesh Bank (Including foreign currencies)

In local currency 29,005,056,916 27,497,425,366
In foreign currencies 851,474,606 984,393,082
29,856,531,522 28,481,818,448
3.1.2 Balance with Sonali Bank (as an agent of Bangladesh Bank)
In local currency 544,241,868 467,354,154
3.2 Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)
Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in accordance with the clause (1) of
Article 36 of Bangladesh Bank Order, 1972 (as amended upto 2003) and clause (1) of Section 33 of the Bank Companies Act, 1991 (as amended
upto 2013) respectively and subsequent DOS circular no: 05/2008, DOS circular letter no.05/2009, DOS circular letter no.21/2009 DOS circular
letter no.01, dated: 19/01/2014, MPD Circular no. 01, dated 23/06/2014 and MPD Circular no. 01, dated 03/04/2018.
According to latest MPD Circular no. 03, dated 09/04/2020, the statutory cash reserve requirement (CRR) on Bank’s time and demand liabilities
@3.50% on daily basis and @4.00% on Bi-weekly average basis has been calculated and maintained with Bangladesh Bank (BB) in current account
and @5.5% statutory liquidity ratio (SLR) on the same liabilities has also been maintained in the form of BD Govt. Islamic Bond including FC
(Foreign Currency) balances with Bangladesh Bank used in BDT, Cash in hand, balance with Sonali Bank as agent of BB, balance with Islamic
Refinance Fund A/C and daily excess reserve of CRR maintained on a Bi-weekly average requirement. Both the reserves are maintained by the
Bank in excess of the statutory requirements, as shown below:

31.12.2020 31.12.2019
Taka Taka
3.3 Cash Reserve Requirement (CRR): 3.50% for DBO and 1.5% for OBO(on daily
basis) of average Demand and Time Liabilities
Required Reserve 10,423,322,000 12,844,916,000
Actual Reserve held as per GL balance (in local currency) 29,005,056,916 27,497,425,366
Excess Reserve 18,581,734,916 14,652,509,366
3.4 Cash Reserve Requirement (CRR): 4.00% for DBO and 2.00% for OBO (on bi-
weekly average basis) of average Demand and Time Liabilities
Actual Reserve held as per GL balance (in local currency) 29,005,056,916 27,497,425,366
Excess Reserve 17,090,575,916 13,368,017,366
3.5 Statutory Liquidity Ratio (SLR)

Actual Reserve held as per GL balance (Note- 3.6) 35,069,686,832 30,476,941,040
Surplus 18,666,937,832 16,347,533,040
3.6 Held for Statutory Liquidity Ratio

Cash in hand (Note- 3) 2,972,709,048 2,949,269,520
Balance with Bangladesh Bank and its Agent Banks (Note-3.1) - -
Balance with Sonali Bank (as an agent of BB) (Note-3.1.2) 544,241,868 467,354,154
Excess reserve of CRR (Note-3.4) 17,090,575,916 13,368,017,366
Balance with Islamic Refinance Fund (Note-6) 250,000,000 250,000,000
Bangladesh Govt. Islamic Bond (Note- 6) 14,212,160,000 13,442,300,000
35,069,686,832 30,476,941,040
4 Balance with Other Banks and Financial Institutions

(Other than Mudaraba Term Deposit)
In Bangladesh (Note - 4.1) 3,889,038,464 2,288,360,101
Outside Bangladesh (Note- 4.2) 611,795,207 1,084,292,499
4,500,833,672 3,372,652,600
4(a) Consolidated balance of other Banks and Financial Institutions

In Bangladesh
Add: Account Balance of subsidiaries of SIBL with SIBL Principal Branch 501,060,008 463,760,840
SIBL Securities Limited (Current account and MTDR) 396,156,756 362,309,451
SIBL Investment Limited 104,903,252 101,451,389
4,390,098,473 2,752,120,941
Less: Inter Company balance eliminated 501,060,008 463,760,840
SIBL Securities Limited (Current account and MTDR) 396,156,756 362,309,451
Add: Account Balance of subsidiaries of SIBL with other Banks and financial institutions 15,555 15,432
SIBL Investment Limited - -
Consolidated balance with Banks and Financial Institutions 3,889,054,019 2,288,375,533
The balances are held with the ‘Principal Branch’ of SIBL bearing current account no: 0002-13300056882 and 0002-13300057058 respectively.

31.12.2020 31.12.2019
Taka Taka
4.1 In Bangladesh
a) Current Account
Islami Bank Bangladesh Limited 43,119 18,634,159
Sonali Bank Limited 30,364,123 2,088,071
Agrani Bank Limited 18,275 15,004,080
Pubali Bank Limited 2,261 2,261
Rupali Bank Limited 61,126,220 17,967,529
NRB Global Bank Limited - 702,092,443
Trust Bank Limited (ATM settlement Account) 23,433,312 3,726,896
Standard Chartered Bank (ATM settlement Account) 6,758,300 4,142,926
121,745,609 763,658,364
b) Mudaraba Short Notice Deposits
Al- Arafah Islami Bank Limited 783,162,184 1,362,705,870
ICB Islami Bank Limited 9,187 9,532
Shahjalal Islami Bank Limited 19,196,450 9,045,702
Prime Bank Limited (Islami Banking Branch) 7,455 7,290
Bank Asia Limited (Islami Banking Branch) 582,992 572,257
Islami Bank Bangladesh Limited 81,100,933 71,741,699
Jamuna Bank Limited (Islami Banking Branch) 557,106 546,155
Pubali Bank Limited (Islami Banking Branch) 3,156,669 4,833,279
Exim Bank Ltd. 9,115,185 8,631,760
Janata Bank Limited 19,226 19,716
Southest Bank Ltd. 3,338,774 332,435
AB Bank Ltd. 315,904 3,596,021
The City Bank Ltd. 11,859 11,891
Agrani Bank Ltd. 257,655,395 41,192,183
First Security Islami Bank Ltd. 32,817,096 12,249,692
NRB Global Banl Ltd. 1,028,573,976 -
Union Bank Ltd. 1,547,672,464 9,206,257
3,767,292,855 1,524,701,738
c) Mudaraba Savings Deposits - -
Total 3,889,038,464 2,288,360,101

31.12.2020 31.12.2019
Taka Taka
4.2 Outside Bangladesh (NOSTRO Account) 31.12.2020
SL Current Account with Currency F.C. Amount Rate Taka
1 SCB, MUMBAI ACUD 28,014.80 84.80 2,375,686
2 SUMMIT Bank, KARACHI ACUD 30,436.82 84.80 2,581,076
3 SONALI Bank, KOLKATA ACUD 114,495.92 84.80 9,709,380
4 MASHREQ Bank, MUMBAI ACUD 15,464.88 84.80 1,311,439
5 NEPAL BANGLADESH Bank ACUD 39,231.86 84.80 3,326,905
6 Bank OF BHUTAN, PHUENTSHOLING ACUD 101,416.35 84.80 8,600,218
7 UNITED Bank OF INDIA ACUD 43,121.30 84.80 3,656,734
8 AB Bank, MUMBAI ACUD 228,255.70 84.80 19,356,334
9 MEEZAN Bank LIMITED ACUD 331,179.89 84.80 28,084,419
10 MCB Bank,KARACHI,PAKISTAN ACUD 1,105.78 84.80 93,771
11 AXIS Bank LIMITED ACUD 109,377.58 84.80 9,275,339
12 HDFC Bank LTD., MUMBAI ACUD 337,035.08 84.80 28,580,946
13 MASHREQ Bank , NEW YORK, (OBU) USD 402,578.04 84.80 34,139,061
14 MASHREQ Bank PSC, NEW YORK, USA USD 596,346.70 84.80 50,570,856
15 SCB, NY, USA USD 4,209,384.53 84.80 356,960,438
16 KOREA EXCH. Bank,KOREA USD 4,364.42 84.80 370,108
17 HABIB AMERICAN Bank USD 410,025.39 84.80 34,770,604
18 COMMERZ Bank AG, FRANKFURT USD 34,437.27 84.80 2,920,318
19 MASHREQ Bank, PSC MUMBAI ACU EURO 437.92 104.14 45,607
20 SCB, FRANKFURT EURO 20,171.91 104.14 2,100,683
21 COMMERZ Bank AG, FRANKFURT EURO 25,712.97 104.14 2,677,857
22 SCB, LONDON, UK GBP 6,082.13 114.79 698,148
23 SCB, TOKYO JPY 502,880.00 0.82 412,663
24 RIYAD BANK RIYAL 405,400.00 22.60 9,160,743
25 Bank AL JAZIRA RIYAL 702.50 22.60 15,874
Total 611,795,207
Currency wise Distribution: 31.12.2020 31.12.2019 31.12.2020 31.12.2019

Foreign Currency Composition Composition Taka Taka
USD/ACU 97.05% 92.19% 593,763,313 999,586,463
GBP 0.11% 1.40% 698,148 15,139,253
EUR 1.27% 5.64% 7,744,465 61,182,660
YEN 0.07% 0.02% 412,663 224,443
RIYAL 1.50% 0.75% 9,176,617 8,159,680
100% 100% 611,795,207 1,084,292,499
Please see ‘Annexure-C’ for details comparative statement of 31.12.2020 & 31.12.2019 of foreign currency amount and rate.

31.12.2020 31.12.2019
Taka Taka
4.3 Maturity-wise groupings of balance with other
Banks and Financial Institutions (Both in Bangladesh and outside Bangladesh)
On Demand 733,540,816 1,847,950,863
Not more than 3 months 3,767,292,855 1,524,701,738
Over 3 months but not more than 1 year - -
Over 1 year but not more than 5 years - -
More than 5 years - -
4,500,833,672 3,372,652,600
5 Placement with Banks & other Financial Institutions
Placement with Banks (Note-5.1) 1,986,395,494 1,986,469,299
Placement with other Financial Institutions (Note-5.2 & 5.3) 4,214,400,000 4,839,600,000
6,200,795,494 6,826,069,299
5.1 Mudaraba Term Deposits with Banks

ICB Islamic Bank Limited 186,395,494 186,469,299
Union Bank Limited 1,800,000,000 1,800,000,000
1,986,395,494 1,986,469,299
5.2 Mudaraba Term Deposits with Other Financial Institutions

IIDFC - -
IPDC Finance Ltd. 250,000,000 250,000,000
International Leasing & Financial Services Ltd. 355,000,000 355,000,000
Union Capital Limited 200,000,000 200,000,000
Bay Leasing & Investment Ltd. 50,000,000 50,000,000
Fas Finance and Investment Limited 300,000,000 300,000,000
First Finance Limited 100,000,000 100,000,000
Islamic Finance & Investment Ltd. 25,000,000 25,000,000
Reliance Finance Limited 1,680,000,000 1,880,000,000
Investment Corporation of BD Ltd. (ICB) 1,000,000,000 1,000,000,000
3,960,000,000 4,160,000,000
5.3 FC Placement with Banks & other Financial Institutions

National Bank Limited - 169,900,000
NCC Bank Limited - 509,700,000
Al-Arafah Islami Bank Ltd. 254,400,000 -
254,400,000 679,600,000
5.4 Maturity-wise groupings of placement with

Banks and other Financial Institutions
On Demand 3,635,000,000 4,314,600,000
More than 3 months but less than 1 year 25,000,000 25,000,000
More than 1 year but less than 5 years 186,395,494 186,469,299
More than 5 years - -
6,200,795,494 6,826,069,299

31.12.2020 31.12.2019
Taka Taka
6 Investment in Shares & Securities
Government
Government Bond (Islamic Investment Bond) (Note 6.1) 12,450,000,000 13,000,000,000
7 Years Treasury BOND (5%) 319,300,000 319,300,000
Investment in BD GOVT. Investment Sukuk bond 1,319,860,000 -
14,212,160,000 13,442,300,000
BD Government Islamic Refinance Fund 250,000,000 250,000,000
14,462,160,000 13,692,300,000
Others
Investment in Shares, Quoted (Note 6.3 & 6.6) 655,101,435 641,262,505
Investment in Shares, Unquoted/bond (Note 6.4 & 6.5) 3,327,938,395 3,427,938,395
3,983,039,830 4,069,200,900
Fair value adjustment through profit or loss (FVTPL) (note: 6.6) 42,167,831 (122,515,819)
Value of Investment in Shares and securities, Others 4,025,207,661 3,946,685,081
Grand Total 18,487,367,661 17,638,985,081
Maturity-wise Grouping of Investment in Securities:

Upto one month 4,955,117,669 4,568,746,686
Not more than 3 months 250,000,000 2,250,000,000
Over 3 months but not more than 1 year 7,700,000,000 6,950,000,000
Over 1 year but not more than 5 years 4,972,981,048 3,609,000,000
More than 5 years 609,268,945 1,741,236,795
18,487,367,661 19,118,983,481
6(a) Consolidated Investment in Shares and Securities

Government
Investment in Government Islamic Bond 12,450,000,000 13,000,000,000
BD Government Islamic Refinance Fund 250,000,000 250,000,000
Investment in BD GOVT. Investment Sukuk bond 1,319,860,000 -
14,142,860,000 13,373,000,000
Others sectors 4,025,207,661 3,946,685,081
Add: Investment in Shares and Securities by subsidiary companies 250,366,611 223,730,222

SIBL Securities Limited 142,155,281 154,433,823
4,275,574,273 4,170,415,304
Total consolidated balance of Investment in shares and securities 14,142,860,000 13,373,000,000

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6.1 Bangladesh Bank introduced a new type of investment opportunity solely for the purpose of Shariah Banks in the year 2005 being inherent
limitation on the part of Shariah Compliant Banks to take part in buying and selling of treasury bill etc as a very common form of treasury
management. The fund has been operated under Mudaraba Principle and are being used as a part of SLR (Statutory Liquidity Requirement) vide
Bangladesh Bank Circular Letter ref. no: AMA/AUSOBI/SANCHAY/S-03/2004/262 dated September 2, 2004.
The mobilized fund from Islamic Bond is invested by Bangladesh Bank and a portion of realized profit is distributed amongst the bond holders as
per mudaraba principle of Islamic Shariah on the basis of the tenure of the bond. So, the rate of return from Islamic Bond is not prefixed rather
dependent on fund deployment by Bangladesh Bank.
6.2 Investment (Cost) in Shares (Quoted)

Bd. Submarine Cable Co 44,452,104 -
Baraka Power 9,710,124 -
Aamra Net 2,960,002 9,984,573
Aman Feed Ltd 7,459,915 -
Aamra Tech 77,786,555 68,249,577
SEBL 1st Mutual Fund - 1,850,435
IFIC 1ST Mutual Fund 3,220,000 7,099,672
Trust Bank 1ST Mutual Fund 2,880,000 7,043,696
1ST Janata Mutual Fund - 2,315,482
AB 1st Mutual Fund 2,050,000 4,693,330
Al-Arafah Islami Bank Limited 1,621,481 1,990,000
Exim Bank Limited 15,135,009 15,198,513
Titas Gas Limited 65,569,565 72,998,131
MJL Bangladesh 9,845,458 15,559,985
Desco 5,561,840 6,072,928
Padma Oil 6,966,289 8,162,374
BSRM Steel 15,183,797 13,361,414
Bashundhara Paper Mills Ltd. 7,068,709 -
Jamuna Oil 29,468,515 45,292,538
Unique Hotel 4,212,337 -
Orion Pharma Limited - 169,498,371
Square Pharmaceuticals 37,526,672 27,678,105
Bangladesh Shipping Corporation 14,238,401 -
RAK Ceramics Limited 14,581,323 7,800,000
BSRM Ltd. 11,223,280 12,512,000
Beximco Pharmaceutical - 15,820,000
Apex Foot Wear Limited 4,439,556 4,995,428
Square Textile 3,290,184 2,358,439
Bata Shoe Company - 2,510,231
Summit Power Limited 62,104,401 72,841,854
BBS Cables 14,860,701 12,499,901
Powergrid Company Limited 1,796,220 2,880,000
Agni Systems Ltd - 2,277,572
Intraco Refueling Station Ltd. - 243,640
IFADAuto Ltd. 2,530,762 -
Meghna Petroleum 33,237,184 27,474,316
510,980,387 641,262,505

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6.3 Capital Market (special fund)
Aamra Tech 13,316,476 -
Batashoe 1,399,490 -
BBS Cables 5,388,689 -
Exim Bank Limited 3,403,560 -
First Security Islami Bank Limited 4,794,693 -
IFADAuto Ltd. 2,157,255 -
Jamuna Oil 16,472,051 -
KPCL 4,720,970 -
Linde BD. 2,050,777 -
Meghna Petroleum 18,536,099 -
RAK Ceramics Limited 5,491,341 -
Renata 4,794,890 -
Singerbd 3,462,635 -
Square Pharmaceuticals 19,161,391 -
Summit Power Limited 18,938,026 -
Titas Gas Limited 15,899,531 -
Unique Hotel 4,133,176 -
144,121,048 -
6.4 Investment (Cost) in Shares (Unquoted)

CDBL Share 1,569,450 1,569,450
Orion Infrastructure Ltd. (Cumulative) 500,000,000 500,000,000
Orion Infrastructure Ltd. (Redeemable) 169,900,000 169,900,000
Lub-RREF (BD) Limited. Pre-IPO 52,000,000 52,000,000
Awqaf Properties Investment fund (APIF) 166,968,945 166,968,945
Central Counterparty Bangladesh Ltd.(CCBL) 37,500,000 37,500,000
927,938,395 927,938,395
6.5 Subordinated Bond

FSIBL Mudaraba Subordinate Bond (2nd & 3rd Bond) 1,400,000,000 1,500,000,000
UBL Mudaraba Subordinate Bond 1,000,000,000 1,000,000,000
2,400,000,000 2,500,000,000
Total Investment (Cost) in Shares (Unquoted)/Bond 3,327,938,395 3,427,938,395
Investment in Subsidiaries represents the amount invested in ‘SIBL Securities Limited’ and ‘SIBL Investment Limited’ that were
incorporated on 20 July 2010 and 30 August 2010 respectively vide certificate of incorporation no: C-85876/10 and C-86726/10. SIBL holds
12,299,990 and 2,499,994 nos. shares of ‘SIBL Securities Limited’ and ‘SIBL Investment Limited’ respectively with a face value of Tk.
100 each and also representing holding of 99.99% shares in both the subsidiaries.
Awqaf Properties Investment fund (APIF) is operated by Islamic Development Bank (IDB). APIF provides financing for the development of Awqaf
properties both in member countries and Islamic communities in non-member countries. The objective of APIF is to develop and invest in
accordance with the principles of Islamic Shariah, in Awqaf real estate properties that are socially, economically, and financially viable, in member
countries of IDB and Islamic communities in non-member countries. Its main activities are poverty alleviation programmes, disaster relief, free
health services, imparting religious and contemporary education, heritage, culture, and environment.

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6.6 Details of Shares & Securities in quoted and unquoted other than in subsidiaries 31.12.2020
Taka
No. of Fair value/
Market price Cost price as on Fair value
Particulars Shares/ Market value as
per Shares 31-12-2020 adjustment
Securities on 31-12-2020
Quoted Shares
Bd. Submarine Cable Co 320,000 166.10 53,152,000 44,452,104 8,699,896
Baraka Power 321,000 25.70 8,249,700 9,710,124 (1,460,424)
Aamra Net 76,265 45.20 3,447,178 2,960,002 487,176
Aman Feed Ltd 221,844 29.90 6,633,136 7,459,915 (826,780)
Aamra Tech 3,242,795 26.40 85,609,786 77,786,555 7,823,231
IFIC 1ST Mutual Fund 700,000 6.10 4,270,000 3,220,000 1,050,000
Trust Bank 1ST Mutual Fund 600,000 6.10 3,660,000 2,880,000 780,000
AB 1st Mutual Fund 500,000 6.30 3,150,000 2,050,000 1,100,000
Al-Arafah Islami Bank Limited 100,000 22.20 2,220,000 1,621,481 598,519
Exim Bank Limited 1,500,000 11.80 17,700,000 15,135,009 2,564,991
Titas Gas Limited 2,100,000 30.80 64,680,000 65,569,565 (889,565)
MJL Bangladesh 155,714 76.90 11,974,407 9,845,458 2,128,948
Desco 150,320 34.80 5,231,136 5,561,840 (330,704)
Padma Oil 36,245 205.10 7,433,850 6,966,289 467,561
BSRM Steel 381,020 42.50 16,193,350 15,183,797 1,009,553
Bashundhara Paper Mills Ltd. 150,000 44.40 6,660,000 7,068,709 (408,709)
Jamuna Oil 207,671 165.50 34,369,551 29,468,515 4,901,036
Unique Hotel 100,000 39.60 3,960,000 4,212,337 (252,337)
Square Pharmaceuticals 200,000 219.50 43,900,000 37,526,672 6,373,328
Bangladesh Shipping Corporation 300,000 44.70 13,410,000 14,238,401 (828,401)
RAK Ceramics Limited 500,000 26.10 13,050,000 14,581,323 (1,531,323)
BSRM Ltd. 210,000 60.20 12,642,000 11,223,280 1,418,720
Apex Foot Wear Limited 20,000 220.30 4,406,000 4,439,556 (33,556)
Square Textile 100,000 29.80 2,980,000 3,290,184 (310,184)
Summit Power Limited 1,700,000 38.90 66,130,000 62,104,401 4,025,599
BBS Cables 269,500 54.80 14,768,600 14,860,701 (92,101)
Powergrid Company Limited 40,274 41.80 1,683,453 1,796,220 (112,767)
IFADAuto Ltd. 63,010 47.20 2,974,072 2,530,762 443,310
Meghna Petroleum 195,000 198.00 38,610,000 33,237,184 5,372,816
553,148,218 510,980,387 42,167,831
Preference Shares
Orion Infrastructure Ltd.
50,000,000 - 500,000,000 500,000,000 -
(Cumulative)
Orion Infrastructure Ltd.
169,900,000 169,900,000 -
(Redeemable)
669,900,000 669,900,000 -
Unqoted Shares/ Bond
CDBL Share 571,181 - 1,569,450 1,569,450 -
Lub-RREF (BD) Limited. Pre-IPO 52,000,000 52,000,000 -
Awqaf Properties Investment fund
166,968,945 166,968,945 -
(APIF)
UBL Mudaraba Subordinate Bond 1,000,000,000 1,000,000,000 -
Central Counterparty Bangladesh
37,500,000 37,500,000 -
Ltd.(CCBL)
FSIBL Mudaraba Subordinate
- 1,400,000,000 1,400,000,000 -
Bond (2nd & 3rd Bond)
2,658,038,395 2,658,038,395 -
Grand Total 3,881,086,613 3,838,918,782 42,167,831
Management conducted impairment assessment of investment in unquoted shares as on 31 December 2020 satisfied that impairement
provision is required.

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6.7 Industry wise classification of shares at market price
Quoated shares
Banks 22,373,587 27,596,716
Mutual Funds 212,454,716 129,318,663
Others 276,152,083 484,347,125
510,980,387 641,262,505
6.8 Cost of shares and securities of quoted and unquoated, other than 3,838,918,782 4,069,200,900
investment in subsidiaries
Fair value adjustment {Profit/(Loss)} to be made through profit and loss account 42,167,831 (122,515,819)
Value of shares and securites, Quoted and Unquoted other than investment in
3,881,086,613 3,946,685,081
subsidiaries
Investments in Shares and Securities’ other than investments in subsidiaries under the category ‘Financial Assets at fair value through profit or
loss (FVTPL)’ has been recognised at fair value and the unrealized profit or loss i.e. difference between fair value and cost has been charged
to profit and loss account and value of the investment has been reduced by the same amount as per requirements of International Financial
reporting Standards (IFRS)-9, Financial Instruments.
7 Investments
In Bangladesh
General Investments etc. (Note-7.1) 288,494,854,278 252,038,985,230
Bills purchased and discounted-net (Note- 7.2) 2,458,098,719 3,134,654,364
Outside Bangladesh
Bills purchased and discounted-net (Note- 7.2) 9,664,990,569 9,094,950,055
300,617,943,566 264,268,589,650
7 (a) Consolidated Investment

General Investments etc. 288,494,854,278 252,038,985,230
Less: InterCompany balance eliminated
SIBL Securities Limited
Quard Investment with SIBL- Principal branch 900,000,000 800,000,000
Total consolidated general investment 287,594,854,278 251,238,985,230
Bills purchased and discounted-net 12,123,089,288 12,229,604,419
Grand total 299,717,943,566 263,468,589,649
Maturity wise Classification of Investments:

With a residual maturity of
Re-payable on Demand 35,752,994,623 27,035,631,139
Over 3 months but not more than 1 year 125,502,816,755 116,074,187,159
Over 1 year but not more than 5 years 62,813,150,000 54,543,539,000
Over 5 years 12,301,645,000 10,992,942,000
300,617,943,566 264,268,589,649

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7.1 Mode-Wise Investment (General)
a) In Bangladesh
Musharaka 221,690,407 285,826,612
Murabaha 7,087,218,568 4,110,909,296
Mudaraba 4,308,095,641 2,213,479,499
Bai-Muazzal 198,926,795,932 175,173,237,666
Hire-Purchase Sirkatul Meelk 62,882,333,115 56,906,637,122
Quard 10,565,217,449 8,648,705,103
Bai-Salam 905,733,176 931,350,622
Staff Loan 2,308,715,593 2,431,330,908
Ijarah 530,405,560 609,610,142
Visa Card 758,648,835 727,898,260
288,494,854,278 252,038,985,230
Mode-Wise Investment (General)
b) Outside Bangladesh
Musharaka - -
Murabaha - -
Bai-Muazzal - -
Hire-Purchase Sirkatul Meelk - -
Installment Investment Scheme - -
Quard - -
Bai-Salam - -
Others - -
- -
7.2 Bills Purchased and discounted
In land Bill Purchase 2,458,098,719 3,134,654,364
Outside Bangladesh
Foreign Bill Purchased 60,424,380 85,750,964
Murabaha Bill of Exchange 1,517,484,462 1,455,670,105
Baim-Wes bills 8,087,081,727 7,553,528,986
9,664,990,569 9,094,950,055
Grand total of net Bills Purchased and Discounted 12,123,089,288 12,229,604,419
7.2.1 Bills Purchased and Discounted

Payable in Bangladesh 4,096,589,743 4,698,133,914
Payable outside Bangladesh 8,343,893,127 8,137,099,405
Gross Bills Purchased and Discounted 12,440,482,871 12,835,233,319
Less: Profit receivable on Bills Purchased and Discounted 317,393,583 605,628,901
Net Bills Purchased and Discounted 12,123,089,287 12,229,604,419
Maturity wise Classification of Bills Purchased and Discounted:

On demand 2,424,617,857 2,445,920,884
Over 1 month but less than 3 months 6,061,544,644 6,114,802,209
Over 3 months but less than 1 year 3,636,926,786 3,668,881,326
1 year or more - -
12,123,089,287 12,229,604,419

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Investments on the basis of significant
7.3 31.12.2020 31.12.2019
concentration
Investments to allied concern of Directors 0.00% 0.00% - -
Investments to Executives & Staffs 0.78% 0.93% 2,333,636,172 2,460,432,039
Investments to Customer Groups 54.02% 57.28% 162,397,228,441 151,365,526,851
Industrial Investment 45.20% 41.79% 135,887,078,952 110,442,630,759
Others 0.00% 0.00% - -
100.00% 100.00% 300,617,943,566 264,268,589,649
Investments allowed to individual customer exceeding 15% of Bank’s total capital:
Number of Client with amount of outstanding Investment to whom Investments sanctioned exceeds 15% of total capital of the Bank is reported
hereunder. Total capital of the Bank was Tk. 3,036.89 Crore as on 31.12.2020 and was used as base figure to calculate the single party exposure
limit-funded liability; and such limit was fixed at Tk. 455.53 crore (3,036.89 crore x 15% ) till 31.12.2020. It is mentioned here that as per Bank
Companies Act, 1991, single party exposure limit has been fixed at 15% for funded and 20% non-funded investment based on capital maintained
for non export oriented clients whereas 15% funded and 35% non-fundend limit for 100% export oriented clients.
Total Principal outstanding amount to such customers at end of the year (Funded) 1277.10 crore* 809.90 crore
Number of such types of customers 03 2
Amount of Classified Investments thereon Nil Nil
Measures taken for recovery Not applicable Not applicable
* As per BRPD circular no. 2, dated: 16 January 2014, single party exposure limit 15% is not applicable for the client doing business in power
sector. The principal amount limit for such client is 25% of total capital, i.e Taka-759.22 crore as on 31.12.2020.
7.4 Customer group and industry wise classification of Investment (Amount in Taka)
2020 2019
Sector
Amount Composition Amount Composition
Commercial lending 63,085,991,368 20.99% 53,900,724,832 20.40%
Export Financing 7,421,291,294 2.47% 4,921,018,590 1.86%
House Building Investment 4,016,753,073 1.34% 3,743,143,723 1.42%
Investment against Scheme & MTDR 5,291,700,741 1.76% 3,991,981,577 1.51%
Small and Medium Enterprises 61,920,979,098 20.60% 63,698,717,346 24.10%
Micro Investment 678,555,344 0.23% 528,101,236 0.20%
Other Investments 15,673,861,882 5.21% 18,368,360,048 6.95%
Off-shore Banking Unit 4,308,095,641 1.43% 2,213,479,499 0.84%
Executives & Staffs of SIBL 2,333,636,172 0.78% 2,460,432,039 0.93%
Agricultural Industries 3,123,138,160 1.04% 3,368,258,174 1.27%
Textile & Allied Industries 41,971,323,395 13.96% 33,741,188,311 12.77%
Food & Allied Industries 13,678,729,468 4.55% 12,615,242,920 4.77%
Pharmaceutical Industries 1,756,699,072 0.58% 1,568,322,953 0.59%
Leather, Chemical, Cosmetic etc. 4,215,657,911 1.40% 3,197,244,220 1.21%
Construction Industries 9,140,136,471 3.04% 8,177,394,150 3.09%
Cement and Ceramic Industries 5,027,401,867 1.67% 3,611,668,991 1.37%
Service Industries 16,686,788,763 5.55% 11,368,846,621 4.30%
Transport and Communication Industries 4,143,127,206 1.38% 3,192,320,500 1.21%
Other Industries 36,144,076,640 12.02% 29,602,143,917 11.20%
Total 300,617,943,566 100.00% 264,268,589,649 100.00%

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7.5 Geographical Location-wise Classification of Investments (Amount in Taka)
2020 2019
Sector
i) Within Bangladesh
a) In Rural Areas 28,753,581,886 9.56% 26,431,716,557 10.00%
b) In Urban Areas 271,864,361,679 90.44% 237,836,873,092 90.00%
Sub-total (a+b) 300,617,943,566 100.00% 264,268,589,649 100.00%
ii) Outside Bangladesh
Total (i+ii) 300,617,943,566 100.00% 264,268,589,649 100.00%
7.6 Division-wise Investments (Amount in Taka)

As at 31 December 2020 As at 31 December 2019
Division
Dhaka 219,164,567,260 72.90% 194,694,679,083 73.67%
Chittagong 62,316,540,044 20.73% 50,488,355,028 19.10%
Sylhet 559,850,559 0.19% 596,444,575 0.23%
Rajshahi 6,443,695,356 2.14% 6,474,479,583 2.45%
Khulna 6,429,542,620 2.14% 6,245,768,176 2.36%
Rangpur 2,390,991,771 0.80% 2,267,255,928 0.86%
Barisal 1,434,312,616 0.48% 1,403,466,160 0.53%
Mymensingh 1,878,443,339 0.62% 2,098,141,116 0.79%
Total 300,617,943,566 100.00% 264,268,589,649 100.00%
7.7 Investments (Classification wise)

Unclassified
Standard 264,989,783,318 235,404,417,478
Special Mentioned Account 12,959,999,501 6,951,113,350
Classified
Substandard 2,111,157,964 658,469,819
Doubtful 414,777,440 282,521,464
Bad or Loss 15,606,044,145 16,493,952,059
296,081,762,367 259,790,474,170
Standard (short term agri / micro inv.) 2,133,360,697 1,915,841,760

Special Mentioned Account (short term agri/ micro inv.) - 3,481,184
Substandard (short term agri / micro inv.) 12,810,901 40,782,857
Doubtful (short term agri / micro inv.) 813,137 759,771
Bad or Loss (short term agri/micro inv.) 55,560,291 56,817,868
2,202,545,026 2,017,683,440
Staff lnvestment 2,333,636,172 2,460,432,039
300,617,943,566 264,268,589,649
7.8 Particulars of provision required for general investment
Unclassified (Excluding Off-balance sheet exposures) 4,971,204,865 3,911,552,438
Classified 7,812,088,173 7,595,557,186
Unclassified- Off-balance sheet exposures 470,450,037 490,293,577
13,253,743,075 11,997,403,200

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7.8.1 Detail Particulars of Provision for Investment
Base for
Unclassified Rate Provision Required
Provision
Standard 1% 205,644,761,160 2,056,447,612 3,590,306,367
Special General Provision-COVID-19
1% 732,164,047 732,164,047 -
(As per BRPD Circular letter No.56 dt. 10.12.2020)
Staff Investment 0% - - -
Consumer Finance (Other than HF and LP) 2% 1,008,774,968 20,175,499 32,905,606
Small and Medium Enterprise 0.25% 56,746,711,320 141,866,778 147,023,584
Housing Finance (HF) 1% 2,006,322,368 20,063,224 20,416,068
Loan for Professionals (LP) 2% 4,806,701 96,134 197,865
Share 2% 1,508,104,365 30,162,087 45,371,601
SMA Investment (Same as UC i.e 0.25%, 1%, 2%,
to 5%)
5% 1,948,895,876 1,948,895,876 56,172,929
Unclassified Off Balance Sheet Items 1% 47,045,003,700 470,450,037 490,293,577

Classified - - - -
Substandard 20% 472,977,731 94,595,546 101,124,330
Substandard (CMSME) 5% 33,997,080 1,699,854 -
Doubtful (CMSME) 20% 10,915,640 2,183,128 -
Doubtful 50% 44,345,097 22,172,549 39,454,362
Bad or Loss 100% 7,676,453,920 7,676,453,920 7,454,232,680
13,217,426,292 11,977,498,969
Provision Required (Short term Base for

Rate Provision Required
Agricultural & Micro Credit) Provision
Unclassified
Standard (short term agri /micro credit) 1.0% 2,133,360,697 21,333,607 19,158,418
Classified
Substandard (short term agri ,micro credit &
5% 3,661,131 183,057 740,116
CMSME)
Doubtful (short term agri /micro credit) 5% 121,971 6,099 5,698
Bad or Loss (Short term agri /micro credit) 100% 14,794,021 14,794,021 -
36,316,783 19,904,232
Required provision for Investments (Grand Total) 13,253,743,075 11,997,403,200
Total provision maintained 13,253,743,075 11,997,403,200
Provision Surplus/(Shortfall) - -
Bangladesh Bank vide its letter ref: DBI-4/42(2)/2019-761, dated: 29.04.2019, accorded their permission to defer provision for investment
amounting to Taka-444.00 crore and instructed to maintain this amount equally during next three years from year 2019 to year 2021.

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Bangladesh Bank vide its letter ref: DBI-4/42(2)/2020-368, dated: 27.04.2021, suggested additional provision for investment amounting to Taka-
26.64 crore and the required provision has been made accordingly. Bangladesh Bank has also deferred classification of some borrowers up to
31 December 2021.
Provision Made: (Other than Short term Agricultural & Micro Credit)
Unclassified
Standard 3,471,425,418 4,326,514,668
SMA 1,948,895,876 56,172,929
Classified
Substandard 96,295,400 101,124,330
Doubtful 24,355,677 39,454,362
Bad or Loss 7,676,453,920 7,454,232,680
13,217,426,292 11,977,498,969
Provision Made: (Short term Agricultural & Micro Credit)
Standard (short term agri credit) 21,333,607 19,158,418
Substandard (short term agri credit) 183,057 740,116
Doubtful (short term agri credit) 6,099 5,698
Bad or Loss (Short term agri credit) 14,794,021 -
36,316,783 19,904,232
Grand Total 13,253,743,075 11,997,403,200

Required provision - Provision made = Surplus/ (Shortfall) - -
7.8.2 Particulars of provision for Off-Balance Sheet items

Basis for
Status Rate
Provision
Off-Balance Sheet Items 1% 52,439,934,267 470,450,037 490,293,577
Required provision for Investments 470,450,037 490,293,577
Provision maintained {note # 14.1(c)} 470,450,037 490,293,577
Surplus Provision - -
7.9 Particulars of Investments:

(i) Investment considered good in respect of which the Banking Company is fully secured 193,992,330,243 181,408,014,364
(ii) Investment considered good for which the Banking Company holds no other security other than
the debtor’s personal security 99,759,553,524 76,561,437,854
(iii) Investment considered good and secured by personal security of one or more parties in addition
to the personal security of the debtors 6,866,059,800 6,299,137,431
(iv) Investment considered bad or doubtful not provided for - -
Total 300,617,943,566 264,268,589,649
(v) Investment due by directors or officers of the Banking Company or any of them either severally
or jointly with any other person 2,333,636,172 2,460,432,039
(vi) Investment due by companies or firms in which the directors of the Banking Company are
interested as directors, partners or managing agents or, in the case of private companies as - -
members.
(vii) Maximum total amount of investments, including temporary investments made at any time 9,797,168 9,851,600
during the period to directors or managers or officers of the Banking Company or any of them
either severally or jointly with any other persons. 9,797,168 9,851,600
(viii) Maximum total amount of Investments including temporary Investment granted during the
period to the companies or firms in which the directors of the Banking Company are interested as
directors, partners or managing agents or in the case of private companies as members Nil Nil
(ix) Investment due from other Banks Nil Nil
(x) Classified Investment on which profit has not been charged 15,661,604,436 16,550,769,927
(xi) Particulars of written off investments
a) Cumulative amount of written off/Waiver of Investments since inception to 31 December last 5,989,846,325 5,958,111,345
year
b) Amount of written off / waiver of Investment during the year 25,361,653 31,734,980
Total amount of written off (a+b) 6,015,207,978 5,989,846,325
c) Amount recovered against debts which are previously written off (cumulative balance) 463,647,741 454,000,207
d) Amount of Investments written off/waiver against which cases have been filed for recovery 6,015,207,978 5,989,846,325
xii) e) Amount of compensation suspense as at year end. 3,579,826,001 2,870,657,332

31.12.2020 31.12.2019
Taka Taka
7.10 Large Investment Restructuring
Large Investment Restructuring is made as per BRPD Circular no: 04, Dated: 29 January 2015, of the investments having minimum outstanding
amount of Taka-500 crore and above in aggregate. The Eligibility criteria as per the circular are:
a) Investments of a particular borrower or group in a Bank, singly or in clubbed together form, shall be eligible for restructuring. Borrower having
exposure in multiple Banks may also approach by forming a consortium.
b) Minimum outstanding investment amount for restructuring shall be Taka-500.00 crore or above in aggregate.
c) Restructuring facility will be provided to a particular investment only once.
Total outstanding amount of such restructured investment for the year 2020 amounts to Taka- 96.76 crore.
8 Fixed Assets including Premises (Including Intangible Assets)

A. Cost
Land 12,330,000 12,330,000
Building 2,320,220,714 2,320,220,714
Furniture & Fixtures 1,348,301,260 1,257,167,455
Office Equipment 1,790,969,871 1,621,292,105
Software 291,981,062 247,489,817
Vehicles 150,527,921 141,721,354
Right of use Assets as per IFRS-16 * 1,011,325,434 -
Books 1,764,278 1,739,549
6,927,420,539 5,601,960,993
B. Accumulated Depreciation
Land - -
Building 451,943,280 404,038,934
Furniture & Fixtures 547,891,338 466,111,881
Office Equipment 1,079,806,659 930,956,342
Software 91,645,655 72,722,101
Vehicles 133,011,069 121,051,952
Right of use Assets as per IFRS-16 191,010,137 -
Books 1,102,226 1,030,039
2,496,410,364 1,995,911,251
Carrying value 4,431,010,176 3,606,049,743

* The cost of the right of use assets (ROU) (lease assets) comprises lease liabilities which is present value of lease payments and the advance rent.
While calculating right of use assets, the bank has not considered the present value of lease payments against its ATM boots if the agreement was
made seperately as considering it as low value assets and if the contract period of the rental premises did not exceed twelve months.
8.1 Intangible assets

Core Banking solution ‘ABABIL’ is used in SIBL which was incorporated in the year 2010. The value of all the softwares under the head ‘Intangible
Assets’ is Taka-291,981,062.00 and being amortized @ 10% following the same method of reducing balancing method as applied for fixed assets.
Written down value of the software as on 31.12.2020 is Taka -200,335,407.00
For details please refer to Annexure-A

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8(a) Consolidated written down value of Fixed Assets including intangible assets
Social Islami Bank Ltd. 4,431,010,176 3,606,049,743
Fixed assets of subsidiaries 15,972,856 7,667,152
SIBL Securities Ltd. 15,972,856 7,667,152
SIBL Investment Ltd. - -
Carrying value of Fixed assets of the Group 4,446,983,032 3,613,716,895
9 Others Assets
Stock of stationery, stamps and printing materials etc. (valued at cost) 36,210,869 36,651,315
Advance rent 81,946,417 236,783,450
Security Deposit 3,495,026 3,441,126
Branch Adjustments (SIBG) (Note: 9.1) 1,561,206,224 2,950,929,983
Suspense Accounts (Note: 9.2) 285,122,898 192,702,080
Other Prepayments 64,517,296 64,210,064
Receivable from SIBL Securities Ltd. 239,242,987 21,482,142
Advance Income Tax 11,981,335,696 10,685,152,854
Investment in subsidiary: SIBL Securities Limited 1,229,999,000 1,229,999,000
Investment in subsidiary: SIBL Investment Limited 249,999,400 249,999,400
Receivable from SIBL Securities Limited 72,049,180 72,000,000
Receivable from SIBL Investment Limited 1,903,690 1,883,690
Protested Bills against Investment 325,014,570 325,014,570
Profit Receivable from Banks, NBFI and BD Govt. 528,810,265 665,595,298
Investment with Off-shore Banking Unit 4,053,637,881 1,487,890,290
Receivable from Off-shore Banking Unit 77,990,079 36,882,278
Dividend Receivable Account 555,193,696 562,130,020
Profit Receivable from Mudaraba Subordinated Bond 56,815,069 99,616,438
Others (Note: 9.3) 37,425,491 10,969,426
21,441,915,734 18,933,333,423
Less: Balance with OBU for elimination
Investment with Off-shore Banking Unit 4,053,637,881 1,487,890,290
Grand total after elimination of balance with OBU 17,388,277,852 17,445,443,133
9(a) Consolidated other Assets

Add: Other assets of subsidiary companies
SIBL Securities Limited 2,351,445,232 2,169,894,251
Membership of Chittagong Stock Exchange 307,000,000 307,000,000
Membership of Dhaka Stock Exchange 682,770,683 682,770,683
Advance Income Tax 104,889,269 89,184,152
Advance Office Rent - 1,168,865
Advance for floor space at nikunjo, DSE Tower - 850,000
Receivable from Regulators 31,824,621 1,637,167
Receivable from client 1,129,885,060 984,335,485
Receivable from DSE, CSE ,Bai-Muajjal & Dividend Income 94,855,599 102,733,901
Security Deposit to CDBL, DSE 200,000 200,000
Security Deposit to BTCL & Duncan Products 20,000 14,000

Advance Income Tax 703,000 212,409
Accounts receivable 45,140,081 81,399,135
Investments in Subsidiaries 1,479,998,400 1,479,998,400
Investment in subsidiary: SIBL Securities Limited 1,229,999,000 1,229,999,000
Investment in subsidiary: SIBL Investment Limited 249,999,400 249,999,400
Less: Inter Company transactions eliminated: 73,952,870 73,883,690

18,231,614,894 18,143,066,838

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Taka Taka
9.1 The balance of Branch adjustment (SIBG) represents unresponded Inter branch and head office transactions at balance sheet date. The balance
of Debit and Credit unrespondent entries as on 26 April 2021 were Taka-629,250,355.00 Details of which are as follows:
Number of Amount (in Tk) of

Unrespondent entries Unrespondent entries
31.12.2020 31.12.2019 31.12.2020 31.12.2019
Upto 3 months 14 19 762,976 488,869,484
Over 3 months but within 6 months 4 - 6,099,371 -
Over 6 months but within 9 months 1 - 26,064,389 -
Over 9 months 17 - 596,323,619 -
36 19 629,250,355 488,869,484
9.2 Suspense Account represents advance against TA/DA, Entertainment Expenses, Advertisement Expenses, Branch Decoration Expenses, Legal
Charges and suspense -others. Necessary provision on others assets has been made in the accounts according to the BRPD Circular no: 14 dated
June 25, 2001 para Kha (1) & (2).
9.3 Others
D.D. Paid without advice 650 650
Wes fund purchased - 1,089
Adjusting A/c debit balance 32,696,146 5,500,000
Advance VAT paid 3,815,178 3,815,178
BEFTN adjustment A/c 53,444 (88,956)
Cards Accrued Income 860,073 -
Incentive disbursement Fund - 1,741,465
37,425,491 10,969,426
10 Placement from Banks & Other Financial Institutions

Bangladesh Govt. Islamic Bond. - -
The Bank has no outstanding balance of borrowing as on 31.12.2020 & 31.12.2019
Maturity Grouping of Borrowings
Up to 1 month - -
More than 1 month but less than 3 months - -
More than 3 months but less than 6 months - -
6 months and above - -
- -
11 Deposits and Other Accounts

Mudaraba Savings Deposits (MSD) 33,622,114,210 25,739,179,658
Mudaraba Term Deposits (MTDR) 175,364,565,456 165,687,514,476
Other Mudaraba Deposit 72,789,409,014 64,112,318,321
Mudaraba Short Notice Deposits (MSND) 17,394,576,463 17,218,665,421
Mudaraba Scheme Deposits (Note-11.1) 55,394,832,551 46,893,652,900
Al- Wadeeah Current Deposit and other accounts (AWCD) (Note- 11.2) 35,321,029,179 26,072,068,558
Bills payable (Note-11.3) 4,909,336,453 5,982,863,785
Cash Waqf Fund 377,056,255 342,710,311
322,383,510,566 287,936,655,109

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11.1 Mudaraba Scheme Deposits
Mud. Hajj/ Umrah Savings Scheme 145,686,733 126,594,292
Mud. Pension Savings Scheme 2,195,822,146 2,617,368,700
Mud. Education Savings Scheme 32,294,535 34,374,390
Mud. Monthly Sav. Deposit Sche 50,958,911 49,064,610
Mud. Monthly Profit Deposit 2,567,883,861 3,408,450,904
Mud. Bashstan Savings Scheme 538,620,684 584,971,007
Mud. Millionaire Scheme 962,954,420 1,016,936,541
M.Lakhopoti Deposit Scheme 29,677,722 38,201,939
M. Double Benefit Deposit Scheme 1,085,639,666 1,518,882,641
M.Marriage Savings Scheme 76,698,825 99,456,576
M.Mohorana Savings Scheme 20,315,894 20,546,614
Subarnalata Special Scheme(Women) 22,072,023 23,087,165
Subarna Rekha Special Deposit(Women) 1,888,587,448 1,767,726,041
Shabug Chya Special Deposit 25,755,489 32,260,353
Shabuj Shayanna Special Deposit 728,336,850 647,011,293
Sanchita Special Deposit scheme 218,281,516 223,441,473
Sonali Din Pension Deposit Scheme 14,842,980,995 14,179,920,337
Sukher Thikana Savings Scheme 17,105,321 14,118,626
Sacchandey Protidin Monthly Profit Deposit 1,292,496,846 2,002,551,186
Samriddir Sopan Scheme Deposit 195,323,252 755,470,981
Sopner Siri Deposit Scheme 83,603,865 101,568,075
Sharna Shikhar (Mudaraba Billinior Deposit S 1,135,861,519 1,109,118,024
Proshanti (Mudaraba Zakat Savings Deposit S 14,554,373 17,811,220
SIBL ASTHA (MUDARABA MONTHLY P 23,306,153,512 14,373,382,413
SIBL SUPER DPS (MUDARABA PENSION 1,964,539,094 390,957,789
SIBL DIGUN PROTTASHA(DOUBLE BE 1,952,627,052 1,740,379,712
55,394,832,551 46,893,652,900
Amount of Mudaraba Scheme Deposit mentioned above are inclusive of Profit payable on the scheme deposits.
11.2 Al-Wadeeah Current Deposit & other A/c

Al Wadeeah current deposit * 12,355,529,074 9,853,744,246
Sundry deposit 6,153,653,694 6,218,150,977
Social fund deposit 17,075 17,075
Supervision charge 861,490 861,490
Risk fund deposit 4,064,434 3,079,314
FC deposit 8,681,982,247 4,096,848,487
Convertible Taka A/c** 137,449,361 80,270,645
F. C. held against B.B. L/C 2,956,663,236 2,427,891,287
Bangladesh Bank Fund for COVID 2,943,987,857 -
Profit payable A/c 2,069,967,856 3,385,663,078
Compensation Realized 16,852,856 5,541,961
35,321,029,179 26,072,068,558
* It is mention here that Un-claimed dividend amount of taka 62,102,641.91 has been included in Al Wadeeah current deposit account.
**Balance of Convertible Taka A/c represents the portion of unsettled balance.

31.12.2020 31.12.2019
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11.2(a) Consolidated balance of Al-Wadeeah Current Deposit & Other A/c
Less: InterCompany balance eliminated 501,060,008 463,760,839
Consolidated balance of Current deposit and other accounts 34,819,969,171 25,608,307,719
The balances are held with the ‘Principal Branch’ of SIBL bearing current account no: 0002-13300056882 and 0002-13300057058 respectively. For
consolidation purpose the balances have been eliminated.
11.3 Bills Payable

Payment Order (PO) 4,888,620,857 4,737,716,525
Demand Draft (DD) 1,820,911 1,940,911
B/P awaiting remittance 18,894,685 1,243,206,349
4,909,336,453 5,982,863,785
11.4 Maturity wise classifcation of Deposits

Payable on demand 24,223,376,144 17,955,008,461
Up to 1 month 40,880,859,777 36,044,108,770
More than 1 month but up to 6 months 113,938,374,563 100,548,415,301
More than 6 months but up to 1 year 86,011,770,908 80,655,986,645
More than 1 year but up to 5 years 45,277,361,980 41,448,001,171
More than 5 years but up to 10 years 12,051,767,194 11,285,134,762
322,383,510,566 287,936,655,109
11.5 Segregation of deposits & other accounts

i) Client Deposit
Al-Wadeeah Current deposit & other accounts 35,320,581,444 26,056,267,878
Bills Payable 4,909,336,453 5,982,863,785
Mudaraba Savings Deposits 29,859,722,499 23,456,665,950
Mudaraba Short Notice Deposits 16,588,144,822 12,878,901,258
Mudaraba Term Deposit 157,054,565,456 152,217,514,476
Mudaraba Scheme Deposits 55,394,832,551 46,893,652,900
Cash Waqf Fund 377,056,255 342,710,311
299,504,239,480 267,828,576,558
ii) Bank Deposit

Mudaraba Term Deposit Receipt (MTDR) 18,310,000,000 13,470,000,000
Mudaraba Short Notice Deposit (MSND) 806,431,641 4,339,764,163
Al-Wadeeah Current deposit (AWCD) 447,735 15,800,680
Mudaraba Savings Deposit (MSD) 3,762,391,711 2,282,513,708
22,879,271,087 20,108,078,551
Grand Total of deposits and other accounts 322,383,510,566 287,936,655,109

31.12.2020 31.12.2019
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12 SIBL Mudaraba Subordinated Bond 8,000,000,000 9,400,000,000
SIBL has three subordinated bonds namely “SIBL Mudaraba Subordinated Bond of Tk. 300 crore”, SIBL 2nd Mudaraba Subordinated Bond of
Tk. 400 crore and SIBL 3rd Mudaraba Subordinated Bond of Taka-500.00 crore to support and strengthen Tier-II capital base of the Bank under
Basel-III capital regulation of Bangladesh Bank.
SIBL Mudaraba Subordinated Bond of Tk. 300 Crore

Social Islami Bank Limited issued ‘SIBL Mudaraba Subordinated Bond of Tk. 300 Crore’ in accordance with the regulatory approval from
Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank (BB) vide their letter ref no. BSEC/CI/DS-13/2014/598 & BRPD
(BFIS) 661/14 B(P)/2014-6027, Dated: 26 August 2014 & 16 September 2014 respectively. The bond was fully subscribed by 14 nos of investors
and the subscription of the bond closed on 31.03.2015. The list of investor with present outstanding balance is as follows:
Investors of SIBL Mudaraba Subordinated Bond

Al-Arafah Islami Bank Limited 100,000,000 200,000,000
Bank Asia Limited 40,000,000 80,000,000
Bank Asia Limited Employees’ Gratuity Fund 14,000,000 28,000,000
Islami Bank Bangladesh Limited 100,000,000 200,000,000
Padma Islami Life Insurance Limited 10,000,000 20,000,000
Prime Islami Life Insurance Limited 10,000,000 20,000,000
Pubali Bank Limited 40,000,000 80,000,000
Reliance Insurance Limited 10,000,000 20,000,000
Sonali Bank Limited 100,000,000 200,000,000
Square Pharmaceuticals Workers Profit Participation 10,000,000 20,000,000
Fund
United Finance Limited 26,000,000 52,000,000
Uttara Bank Limited 20,000,000 40,000,000
600,000,000 1,200,000,000
SIBL 2nd Mudaraba Subordinated Bond of Tk. 400 Crore
Social Islami Bank Limited issued ‘SIBL 2nd Mudaraba Subordinated Bond of Tk. 400 Crore’ in accordance with the regulatory approval from
Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank (BB) vide their letter ref no. BSEC/CI/DS-13/2014/28 & BRPD
(BFIS) 661/14 B(P)/2017-1252, Dated: 17 January 2017 & 01 March 2017 respectively. The bond was fully subscribed by 12 nos of investors and
the subscription of the bond closed on 20.06.2017. The list of investor with present outstanding balance is as follows:
Investors of SIBL 2nd Mudaraba Subordinated Bond

Bank Asia Limited 60,000,000 80,000,000
Central Depository Bangladesh Ltd 120,000,000 160,000,000
Dhaka Stock Exchange Limited 240,000,000 320,000,000
Eastern Bank Limited 150,000,000 200,000,000
Mercantile Bank Limited 150,000,000 200,000,000
Midland Bank Limited 120,000,000 160,000,000
National Life Insurance Co. Ltd 60,000,000 80,000,000
Pubali Bank Limited 300,000,000 400,000,000
Trust Bank Limited 300,000,000 400,000,000
Uttara Bank Limited 300,000,000 400,000,000
2,400,000,000 3,200,000,000

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SIBL 3rd Mudaraba Subordinated Bond of Tk.500 Crore
Social Islami Bank Limited issued ‘SIBL 3rd Mudaraba Subordinated Bond of Tk. 500 Crore in accordance with the regulatory approval from
Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank (BB) vide their letter ref no. BSEC/CI/DS-13/2014/670 &
BRPD(BFIS)661/14B(P)/2018-7647, Dated: 27 September 2018 & 11 October 2018 respectively. The list of investor with present outstanding
balance is as follows:
Investors of SIBL 3rd Mudaraba Subordinated Bond

Agrani Bank Limited 2,500,000,000 2,500,000,000
EXIM Bank Limited 500,000,000 500,000,000
Islami Bank Bangladesh Limited 2,000,000,000 2,000,000,000
5,000,000,000 5,000,000,000
13 SIBL Mudaraba Perpetual Bond of Tk.500 Crore

Social Islami Bank Limited issued ‘SIBL Mudaraba Perpetual Bond of Tk. 500 Crore in accordance with the regulatory approval from
Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank (BB) vide their letter ref no. BSEC/CI/DS-07/2014/272 &
BRPD(BFIS)661/14B(P)/2020-8946, Dated: 25 November 2020 & 22 October 2020 respectively. The subscription of the bond is going on and the
total fund will be collected within one year from the approval date of BSEC. Meanwhile, an amount of Tk. 1,50,00,00,000 of the bond is subscribed
by Islami Bank Bangladesh Limited on 29/12/2020. The present list of subscriber with outstanding balance is as follows:
Islami Bank Bangladesh Limited 1,500,000,000 -

1,500,000,000 -
14 Other Liabilities
Adjusting A/C (Cr.) Balance 17,485,085 10,231,405
Other Payable 13,929,175 12,263,717
BEFTN Adjustment Account 43,539,542 35,998,977
Parking Account 3,890 -
ATM Settlement for Q-Cash 31,962,950 23,642,698
Provision for Investments ( note: 14.1) 13,253,743,075 11,997,403,200
Provision for other Assets (note: 14.2) 449,527,557 456,527,557
Compensation and Rent Suspense (note: 14.3) 3,579,826,001 2,870,657,332
Provision for Taxation (note: 14.4) 16,370,918,424 14,826,251,926
Zakat Fund (note: 14.5) 103,558,963 93,451,718
Lease liabilities as per IFRS-16 * 724,602,327 -
Mudaraba Profit Distribution (note: 14.6) 5,000,000 15,000,000
Provision for good borrower (note: 14.7) 10,000,000 10,000,000
Provision for Climate Risk Fund (note: 14.8) 20,000,000 3,000,000
Provision for Start-Up Fund (note: 14.9) 15,509,355 -
34,639,606,343 30,354,428,531
* The bank recognised lease liability which is present value of lease payments to be made over the lease terms from the date of commencement
or 01 January 2020 (initial recognition). The lease payments has been discounted @ 6.00%.

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14(a) Consolidated Other Liabilities
Add: Other Liabilities of subsidiaries
SIBL Securities Limited 1,550,538,240 1,347,839,260
Payable to SIBL-Term loan 900,000,000 800,000,000
Payable to regulators 9,692,149 6,655,006
Payable to clients 359,987,025 305,701,236
Other provisions 167,231,086 146,322,314
Lease Liability 5,070,782 -
Lease Liability_Current Portion 3,720,086 -
Provision for Income Tax 104,837,111 89,160,703

Accrued Expenses 69,000 46,000
Other provisions - 2,660,502
Provision for Income Tax 1,841,913 655,159
36,192,055,497 31,705,629,453
Payable to SIBL-Term loan 900,000,000 800,000,000
Grand total 35,292,055,497 30,905,629,453
14.1 Provision for Investment

(a) Specific Provision on Investment
Provision held at the beginning of the year 7,595,557,186 6,398,009,498
Fully provided Investment written off /Waiver (23,325,653) (31,734,980)
Transferred from doubtful income/compensation realized/recovery 9,647,534 155,621,173
Provision made during this year 230,209,106 1,073,661,495
Provision held at the end of the year 7,812,088,173 7,595,557,186
(b) General Provision on Investment

Provision held at the beginning of the year 3,911,552,438 1,826,099,534
Fully provided Investment written off /Waiver (2,036,000) -
Addition during the year 329,524,380 2,085,452,904
Special General Provision-COVID-19 732,164,047 -
Balance at the end of the year 4,971,204,865 3,911,552,438
Total Provision on Investments 12,783,293,038 11,507,109,623
(c) General Provision on Off-Balance Sheet items

Provision held at the beginning of the year 490,293,577 464,963,838
Addition during the year (19,843,540) 25,329,739
Balance at the end of the year 470,450,037 490,293,577
Total Provision for Investments & Off-Balance Sheet items (a+b+c) 13,253,743,075 11,997,403,200

31.12.2020 31.12.2019
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14.2 Provision for other Assets
Provision written back during the year (7,000,000) -
Addition during the year - 5,637,000
Balance at the end of the year 449,527,557 456,527,557
14.2.1 Provision for protested bills

Provision during the year - 5,637,000
325,014,570 325,014,570
14.2.2 Provision for suspense account

Provision written back during the year (7,000,000) -
Addition during the year - -
124,512,987 131,512,987
14.3 Compensation & Rent Suspense A/C

Compensation Receivable A/C
Murabaha (General) 129,036,636 124,210,725
Murabaha (Post Import) 46,789,090 726,953
Musharaka (Preshipment) 33,069,243 33,656,265
Bai-Muazzal 335,219,814 279,495,170
Bai-Muazzal Trust Receipt 305,457,904 290,986,238
Baim Wes bills 136,034 115,209
Bai-Muazzal (ME) 602,999,781 534,086,612
1,452,708,502 1,263,277,170
Compensation Suspense A/C

Murabaha (General) 10,014,098 8,016,152
Murabaha (Post Import) 16,516,669 16,582,644
Bai-Muazzal 378,444,789 281,444,010
Bai-Muazzal- House hold 7,856 7,856
Bai-Muazzal Trust Receipt 55,749,048 48,681,849
Musharaka (Preshipment) 2,988,289 455,592
Others 195,413,601 67,335,270
659,134,351 422,523,374
Rent Suspense A/C 1,467,983,149 1,184,856,788
Total Compensation & Rent Suspense 3,579,826,001 2,870,657,332

31.12.2020 31.12.2019
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14.3.1 Movement of Compensation and Rent Suspense A/C
Balance at the beginning of the year 2,870,657,332 1,874,740,496
Add: Amount transferred to suspense account during the year 726,021,525 1,131,458,797
Less: Amount recovered from suspense account during the year (16,852,856) (135,541,961)
Less: Amount written off/waived during the year - -
14.4 Provision for Taxation

Provision for Current tax
Add: Provision made during the year (Zakat Fund) (Note:14.5) 62,135,378 56,071,031
Add: Provision made during the year (Note:14.4.1) 1,482,531,120 1,593,092,009
16,370,918,424 14,826,251,926
Advance tax
Paid during the year 1,296,182,842 1,313,745,832
11,981,335,696 10,685,152,854
14.4.1 Provision made during the year

Operating Profit before provision & tax 4,343,211,109 6,342,110,494
Accounting Depreciation 309,488,978 311,216,849
Fair value adjustment of shares & securities - 122,515,819
Excess perquisites 90,000,000 95,000,000
Add: Inadmissible expense 399,488,978 528,732,667
Less: Items to be deducted
Dividend Income receipt 566,096,045 753,500,134
Capital Gain from Shares & Securities 196,283,426 7,073,878
Written off Waiver Bad Investment as per BRPD Circular 25,361,653 31,734,980
Depreciation under 3rd Schedule as per ITO 1984 and amendment 355,802,780 355,741,917
General Provisions for Investments - 1,878,300,000
Less: Inadmissible expense and for separate consideration 1,143,543,904 3,026,350,909
Total Taxable Income 3,599,156,182 3,844,492,253
Total Tax liability for current year
Business Tax @ 37.50% for year 2020 and @37.50% for year 2019 1,349,683,568 1,441,684,595
Dividend Tax @ 20% 113,219,209 150,700,027
Tax on gain on shares & securities @ 10% 19,628,343 707,388
Provision required 1,482,531,120 1,593,092,009
Provision made 1,482,531,120 1,593,092,009

31.12.2020 31.12.2019
Taka Taka
14.4.2 Reconciliation of effective tax rate of the Bank
Particulars Effective Rate
Profit before income tax as per profit and loss account 4,343,211,109 6,342,110,494
Income tax as per applicable tax rate 37.50 1,628,704,166 2,378,291,435
Factors affecting the tax charge for current year:
Inadmissible 3.45 149,808,367 198,274,750
Abmissible Expenses in the current year (i.e.write-off etc.) (3.29) (142,936,663) (849,666,336)
Tax savings from reduced tax rates for dividend (2.28) (99,066,808) (131,862,523)
Tax loss/(savings) from reduced tax rates for capital gain (1.24) (53,977,942) (1,945,316)
Total income Tax Expenses 34.13 1,482,531,120 1,593,092,009
14.5 Zakat fund

Opening Balance 149,522,749 129,665,548
Addition this year 165,694,341 149,522,749
To sadaka fund 103,558,963 93,451,718
To provision for tax 62,135,378 56,071,031
Less: Paid during the year - (161,000)
Less: Transferred to Provision for Taxation (56,071,031) (48,624,581)
Less: Transferred to Sadaka fund (Balance of Zakat Fund) (93,451,718) (80,879,968)
Closing Balance at the end of the year 165,694,341 149,522,749
14.6 Mudaraba Profit Distribution

Opening Balance - -
Addition the year 5,000,000 15,000,000
Less: Paid during the year - -
Closing Balance at the end of the year 5,000,000 15,000,000
14.7 Provision for good borrower

Opening balance 10,000,000 8,000,000
Addition during the year - 2,000,000
Paid during the year -
10,000,000 10,000,000
14.8 Provision for Climate Risk Fund

Opening balance 3,000,000 2,000,000
Addition during the year 17,000,000 1,000,000
Paid during the year -
20,000,000 3,000,000
Provision for Climate Risk Fund has been maintained in accordance with GBSRD circular no: 04, dated: 09 July 2015 and SFD circular no: 01,
dated: 11 May 2016.

31.12.2020 31.12.2019
Taka Taka
14.9 Provision for Start-Up Fund
Srart-Up Fund 15,509,355 -
Provision for Start-Up Fund has been maintained in accordance with Bangladesh bank SMESPD circular no: 04, dated: 29 March 2021.
15 Deferred Tax Liability/(Asset)

Balance at the beginning of the year 93,817,514 74,330,843
Add: Provision made during the year 7,181,158 19,486,671
Add: Transferred from revaluation reserve 337,208,183 -
Closing balance at the end of the year 438,206,855 93,817,514
Deferred tax detailed calculation disclosed in annexure-G
15 (a) Consolidated Deferred Tax Liability/(Asset)

Social Islami Bank Limited 438,206,855 93,817,514
Balance at the beginning of the year 887,413 1,106,176
Add: Provision made during the year (74,670) (218,763)
Closing balance at the end of the year 812,743 887,413
Grand total 439,019,598 94,704,927
16 Capital
16.1 Authorized Capital
3,000,000,000 ordinary shares of Tk. 10 each 30,000,000,000 10,000,000,000
16.2 Issued, Subscribed and Paid up Capital

The Paid-up Capital of the Bank is currently Tk. 9,380,084,230 divided into 938,008,423 Ordinary
9,380,084,230 8,933,413,560
Shares of Tk 10 each
Break up of paid up capital is as follows

26,000,000 no. Ordinary shares of Tk.10 issued for cash 260,000,000 260,000,000
477,322,945 no. Ordinary shares of Tk. 10 each for cash as right share 4,773,229,450 4,773,229,450
234,975,697 no.ordinary shares of Tk 10 each issued as bonus shares 2,349,756,970 2,349,756,970
73,829,864 no.ordinary shares of Tk 10 each issued as bonus shares 738,298,640 738,298,640
81,212,850 no.ordinary shares of Tk 10 each issued as bonus shares 812,128,500 812,128,500
44,667,067 no.ordinary shares of Tk 10 each issued as bonus shares 446,670,670 -
9,380,084,230 8,933,413,560
Sponsor and Directors 2,819,069,460 2,683,909,620

General Shareholders 6,561,014,770 6,249,503,940
9,380,084,230 8,933,413,560

31.12.2020 31.12.2019
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16.3 Classification of Shareholders by holding
Percentage
Year 2020 No. of Shareholders No. of shares of holding of
shares
Less than 500 shares 12,383 1,993,664 0.21%
501 to 5,000 shares 12,683 22,780,015 2.43%
5,001 to 10,000 shares 1,706 11,909,672 1.27%
10,001 to 20,000 shares 794 11,184,125 1.19%
20,001 to 50,000 shares 417 12,756,769 1.36%
50,001 to 99,999 shares 364 877,384,178 93.54%
Total 28,347 938,008,423 100.00%
Year 2019 Percentage

No. of Shareholders No. of shares of holding of
Shareholding range shares
Less than 500 shares 13,072 2,095,017 0.23%
501 to 5,000 shares 13,336 23,417,108 2.62%
5,001 to 10,000 shares 1,697 11,698,548 1.31%
10,001 to 20,000 shares 787 10,933,635 1.22%
20,001 to 50,000 shares 409 12,580,029 1.41%
50,001 to 99,999 shares 346 832,617,019 93.20%
Total 29,647 893,341,356 100.00%
16.4 Particulars of shareholding and Percentage Analysis

Year 2020 Year 2019
Particulars of shareholding: Number of Number of
Taka Taka
Share holders Shares
Sponsors & Placement 21 89,292,991 892,929,910 1,028,340,630
Sponsors Foreign 12 12,809,800 128,098,000 123,069,200
Sponsors & Placement Company 11 192,613,955 1,926,139,550 1,834,418,660
General Public 27,686 179,937,174 1,799,371,740 1,555,865,990
Institutions (Bank & Insurance) 44 25,890,523 258,905,230 245,358,590
Institution (Others) 535 417,197,182 4,171,971,820 3,972,237,900
ICB Account Holders 25 63,754 637,540 608,950
ICB 1 10,754,004 107,540,040 101,482,040
ICB Unit Fund 1 7,408,826 74,088,260 53,217,370
ICB Mutual Fund - - - -
Employee 2 1,797,866 17,978,660 15,981,950
Non-Resident Bangladeshi 9 242,348 2,423,480 2,832,280
28,347 938,008,423 9,380,084,230 8,933,413,560
Percentage of shareholding Analysis: Percentage Percentage

Sponsors & Placement 9.52% 11.51%
Sponsors Foreign 1.37% 1.38%
Sponsors & Placement Company 20.53% 20.53%
General Public 19.18% 17.42%
Institutions (Bank & Insurance) 2.76% 2.75%
Institution (Others) 44.48% 44.46%
ICB Account Holders 0.01% 0.01%
ICB 1.15% 1.14%
ICB Unit Fund 0.79% 0.60%
Employee 0.19% 0.18%
Non-Resident Bangladeshi 0.03% 0.03%
100% 100%

31.12.2020 31.12.2019
Taka Taka
16.5 Capital Adequacy (Solo Basis)
Position of capital adequacy are given below:-
a) Going Concern Capital ( Tier -I)
Common Equity Tier I (CET-1) Capital
i) Paid-up Capital 9,380,084,230 8,933,413,560
ii) Statutory Reserve (Note: 17) 7,030,390,821 6,422,261,269
iii) Retained Earnings (Note: 19) 1,056,769,989 984,276,383

17,467,245,040 16,339,951,211
Additional Tier I (AT-1) Capital)
i) SIBLMudaraba Perpetual Bonds 1,500,000,000 -
18,967,245,040 16,339,951,211
b) Gone Concern Capital (Tier-II)
i) General Provision {Note 14.2(b+c)} 5,441,654,902 4,401,846,015
ii) SIBLMudaraba Subordinated Bonds 5,960,000,000 7,160,000,000

11,401,654,902 11,561,846,015
c) Total eligible capital (a +b) 30,368,899,942 27,901,797,226
d) Total Risk Weighted Assets 225,020,617,500 202,485,885,000
e) Minimum Required Capital (10% of Risk Weighted Assets) 22,502,061,750 20,248,588,500
f) Minimum Required Capital including conservation buffer (12.5% of Risk weighted assets) 28,127,577,188 25,310,735,625
g) Total Capital Surplus (c-e) 7,866,838,192 7,653,208,726
h) Total Capital Surplus considering conservation buffer(c-f) 2,241,322,754 2,591,061,601
Capital Adequacy (Consolidated basis)

Position of capital adequacy are given below:-
a) Going Concern Capital ( Tier -I)
Common Equity Tier I (CET-1) Capital
i) Paid-up Capital 9,380,084,230 8,933,413,560
ii) Statutory Reserve (Note: 17) 7,030,390,821 6,422,261,269
iii) General Reserve 11,314,058 9,843,356
iv) Retained Earnings {Note: 19(a)} 1,103,498,067 1,015,230,517
17,525,287,175 16,380,748,701
Additional Tier I (AT-1) Capital
i) SIBLMudaraba Perpetual Bonds 1,500,000,000 -
19,025,287,175 16,380,748,701
b) Gone Concern Capital (Tier-II)
i) General Provision {Note 14.1(b+c) 5,441,654,902 4,401,846,015
ii) SIBLMudaraba Subordinated Bonds 5,960,000,000 7,160,000,000
11,401,654,902 11,561,846,015

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c) Total eligible capital (a +b) 30,426,942,077 27,942,594,716

d) Total Risk Weighted Assets 224,298,667,500 201,385,860,000
e) Minimum Required Capital (10% of Risk Weighted Assets) 22,429,866,750 20,138,586,000
f) Minimum Required Capital including conservation buffer (12.5% of Risk 28,037,333,438 25,173,232,500
Weighted Assets)
g) Total Capital Surplus (c-e) 7,997,075,327 7,804,008,716
h) Total Capital Surplus considering conservation buffer(c-f) 2,389,608,639 2,769,362,216
Capital to Risk Weighted Asset Ratio (Solo basis)
31.12.2020 31.12.2019
Particulars Capital Capital
Requirement Requirement
Maintained Maintained
Going Concern Capital: (Tier-I ) 6.00% 8.43% 6.00% 8.07%
Common Equity Tier I Capital: (CET-1) 4.50% 7.76% 4.50% 8.07%
CET-1 Plus Conservation Buffer 7.00% 7.76% 7.00% 8.07%
Gone Concern Capital: (Tier-II) 0.00% 5.07% 0.00% 5.71%
Minimum CRAR 10.00% 13.50% 10.00% 13.78%
Minimum CRAR Plus Conservation Buffer 12.50% 13.50% 12.50% 13.78%
Capital Adequacy Ratio (Consolidated basis)
31.12.2020 31.12.2019
Particulars Capital Capital
Requirement Requirement
Maintained Maintained
Going Concern Capital: (Tier-I ) 6.00% 8.48% 6.00% 8.13%
Common Equity Tier I Capital: (CET-1) 4.50% 7.81% 4.50% 8.13%
CET-1 Plus Conservation Buffer 7.00% 7.81% 7.00% 8.13%
Gone Concern Capital: (Tier-II) 0.00% 5.08% 0.00% 5.74%
Minimum CRAR 10.00% 13.57% 10.00% 13.88%
Minimum CRAR Plus Conservation Buffer 12.50% 13.57% 12.50% 13.88%
Bangladesh Bank vide its letter ref: BRPD(P-1)/661/13/2019-1525, dated: 17.02.2019, has accorded their permission to calculate total capital
without adjusting the deferred provision as approved by Bangladesh Bank till the year 2021.

31.12.2020 31.12.2019
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16.6 Breakdown of gross Risk-Weighted Assets (RWA) in the various categories of risk-weights
Solo Basis
a) Risk Weights for Credit Risk (Amount in Taka)
Risk Weights 31.12.2020 31.12.2019
Principal Risk Weighted Principal Risk Weighted
(Both B/S & Off-B/S)
amount Assets amount Assets
0% 59,815,500,000 - 56,275,400,000 -
20% 32,450,100,000 6,490,020,000 30,841,900,000 6,168,380,000
40% 2,524,500,000 1,009,800,000 3,024,900,000 1,209,960,000
50% 135,867,800,000 67,933,900,000 109,584,900,000 54,792,450,000
60% 27,300,100,000 16,380,060,000 24,077,500,000 14,446,500,000
75% 25,167,550,000 18,875,662,500 24,691,400,000 18,518,550,000
80% 9,664,500,000 7,731,600,000 9,215,900,000 7,372,720,000
100% 59,903,000,000 59,903,000,000 55,324,400,000 55,324,400,000
120% - - - -
125% 28,741,100,000 18,052,675,000 14,388,900,000 16,356,025,000
150% 4,453,500,000 6,680,250,000 5,658,800,000 8,488,200,000
Total 385,887,650,000 203,056,967,500 333,084,000,000 182,677,185,000
b) Risk Weights for Operational Risk 2,018,085,000 20,180,850,000 1,822,470,000 18,224,700,000

c) Risk Weights for Market Risk 178,280,000 1,782,800,000 158,400,000 1,584,000,000
Total Risk Weighted Assets 225,020,617,500 202,485,885,000
Consolidate basis
a) Risk Weights for Credit Risk (Amount in Taka)
Risk Weights 31.12.2020 31.12.2019
Principal Risk Weighted Principal Risk Weighted
(Both B/S & Off-B/S)
amount Assets amount Assets
0% 59,921,700,000 - 56,365,200,000 -
20% 32,450,100,000 6,490,020,000 30,841,900,000 6,168,380,000
40% 2,524,500,000 1,009,800,000 3,024,900,000 1,209,960,000
50% 135,867,800,000 67,933,900,000 109,584,900,000 54,792,450,000
60% 27,300,100,000 16,380,060,000 24,077,500,000 14,446,500,000
75% 25,167,550,000 18,875,662,500 24,691,400,000 18,518,550,000
80% 9,664,500,000 7,731,600,000 9,215,900,000 7,372,720,000
100% 59,955,600,000 59,955,600,000 55,369,000,000 55,369,000,000
120% - - - -
125% 27,527,500,000 16,535,675,000 13,123,000,000 14,773,650,000
150% 4,453,500,000 6,680,250,000 5,658,800,000 8,488,200,000
Total 384,832,850,000 201,592,567,500 331,952,500,000 181,139,410,000
b) Risk Weights for Operational Risk 2,035,890,000 20,358,900,000 1,840,605,000 18,406,050,000

c) Risk Weights for Market Risk 234,720,000 2,347,200,000 184,040,000 1,840,400,000
Total Risk Weighted Assets 224,298,667,500 201,385,860,000

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17 Statutory Reserve
Opening balance 6,422,261,269 5,795,455,397
Add: Addition during the year 608,129,552 626,805,871
7,030,390,821 6,422,261,269
17(a) General Reserve

Opening balance 9,843,356 10,764,250
Add: Addition during the year 1,470,702 -
Less: Adjustment during the year - (920,894)
11,314,058 9,843,356
The Board of SIBL Securities Ltd. has decided to create a general reserve @1% on total receivable from clients at the end of each year and add
or adjustment with general reserve will depend on size of unrealized loss against outstanding margin loan and realization for the respective year.
During the year, the adjustment made for creating provisions separately for impairment of margin loan and diminution in value of investment in
shares.
18 Revaluation Reserve on fixed assets

Carrying (Revalued) amount of fixed assets (Land and Building) 1,401,041,790 1,436,649,786
Cost of fixed assets (land and building) less depreciation 469,662,529 481,651,015
Balance of revaluation reserve 931,379,261 954,998,771
Less: Adjustment made based on difference amount of depreciation 23,029,023 23,619,510
Less: Transferred to deferred tax 337,208,183 -
Remaining balance of revaluation reserve 571,142,055 931,379,261
Property class under the head ‘Land and Building’ have been revalued in the year 2011, in accordance with the applicable rules and regulations as
per IAS-16, ‘Property, Plant and Equipment’ and as per Bangladesh Bank BCD circular letter no: 12 & 18, dated: 20 April 1993 & 15 June 1993 and
BRPD circular no: 10, dated: 25 November 2002. The valuation firms have used the fair value model to revalue the class of property. The valuation
was not reviewed after year 2011.
a. The effective date of revaluation:

The revaluation was completed by the valuers on 20.03.2011. And The revaluation effect on the assets have been accounted for on 30.03.2011.
b. Valuer:
Two separate independent valuer firm ‘Commodity Inspection Services (BD) Ltd.’ and ‘Royal Inspection International Ltd.’ have been assigned to
carry on the valuation job.
c. Method used for determination of fair value:

The valuer firms have used the market-based evidence to appraise the class of property ‘Land and Building’. They have used current market prices
as reference that has recently been observed for selling the land and buildings of same class of the same locality for appraising the fair value.
Using the appraisal they have determined the amount of revaluation of the assets.
(amounts in Taka)
Revaluation Amount of
Class of Cost less Depreciation on Depreciation on
Location Surplus as on adjustment for
property depreciation revalued amount cost
01.01.2020 the year 2020
City Center,
Building 320,279,249 764,887,668 27,129,173 8,006,981 19,122,192
Head Office
Chandaikona Land 2,111,623 10,218,377 - -
Branch Building 943,382 1,053,680 49,927 23,585 26,342
Savar Branch Building 25,714,849 23,316,586 1,225,786 642,871 582,915
Panthapath
Building 21,395,453 43,205,831 1,615,032 534,886 1,080,146
Branch
Rampura Branch Building 31,846,510 30,302,716 1,553,731 796,163 757,568
Khulna Branch Building 15,004,092 11,822,056 670,654 375,102 295,552
Nawabpur Road
Building 52,367,370 46,572,348 2,473,493 1,309,184 1,164,309
Branch
469,662,529 931,379,262 34,717,796 11,688,773 23,029,023

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19 Retained Earnings
Opening balance 984,276,383 878,140,568
Less: Issue of cash dividend 5% (446,670,678) -
Less: Issue of Stock dividend 5% (446,670,670) (812,128,500)
Add: Transferred from Profit & Loss Account 942,805,931 894,644,805
Add: Transferred from Revaluation Reserve for Fixed Assets 23,029,023 23,619,510
1,056,769,989 984,276,383
19(a) Consolidated retained earnings

Opening Balance 1,015,230,517 904,866,027
Less: Issue of cash dividend for SIBL shareholders 5% (446,670,678) -
Less: Issue of Stock dividend 5% (446,670,670) (812,128,500)
Add: Transferred from current year retained earnings of SIBL & its subsidiaries {note 19.1(a)} 959,141,552 898,873,480
Add: Transferred from Revaluation Reserve for Fixed Assets of SIBL 23,029,023 23,619,510
Add: Adjustment for implementation of IFRS 16 (561,678) -
1,103,498,067 1,015,230,517
SIBL has invested amount of Taka- 1,229,998,800 and Taka- 249,999,200 in two of its subsidiaries ‘SIBL Securities Ltd. (SIBL SL)’ and ‘SIBL
Investment Ltd. (SIBL IL)’ respectively. SIBL holds 99.999902% and 99.99968% of total shares of its subsidiaries ‘SIBL SL.’ and ‘SIBL IL.’ respectively
while the other shareholders of the subsidiaries hold 0.000098% and 0.00032% of total shares respectively.
Details of the shareholding position is as under:
Sl No. Shares Value of shares Percentage of holding of shares

Shareholders
no. SIBL SL SIBL IL SIBL SL SIBL IL SIBL SL SIBL IL
Social Islami
1 12,299,988 2,499,992 1,229,998,800 249,999,200 99.999902% 99.99968%
Bank Limited
2 Alhaj Nasiruddin 1 1 100 100 0.000008% 0.00004%
Mr. Md. Sayedur
3 1 - 100 - 0.000008% -
Rahman
Major (Retd.)
4 Dr. Md. Rezaul 1 1 100 100 0.000008% 0.00004%
Haque
Alhaj Sultan
5 M a h m o o d 1 1 100 100 0.000008% 0.00004%
Chowdhury
Mr. Abdul Awal
6 1 1 100 100 0.000008% 0.00004%
Patwary
H a m d a r d
Laboratories
( W a q f )
7 Bangladesh, 1 - 100 - 0.000008% -
Represented
by: Mr. Anisul
Hoque
Mrs. Nargis
8 1 - 100 - 0.000008%
Mannan
Mr. Kamaluddin
9 1 1 100 100 0.000008% 0.00004%
Ahmed
Alhaj Sk.
10 Mohammad 1 1 100 100 0.000008% 0.00004%
Rabban Ali
Mr. A. Jabbar
11 1 - 100 - 0.000008% -
Mollah
Mr. Md. Kamal
12 1 1 100 100 0.000008% 0.00004%
Uddin
13 Mr. Belal Ahmed 1 1 100 100 0.000008% 0.00004%
12,300,000 2,500,000 1,230,000,000 250,000,000 100.00% 100.00%

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Taka Taka
19.1 Current year retained earnings
Profit after tax 1,550,935,483 1,521,450,676
Less : Statutory Reserve 608,129,552 626,805,871
942,805,931 894,644,805
19.1.(a) Consolidated Current year retained earnings

Profit after tax of SIBL 1,550,935,483 1,521,450,676
Less :Statutory Reserve 608,129,552 626,805,871
Profit/(Loss) attributable to Group 942,805,931 894,644,805
Add: Profit/(loss) of subsidiaries
Add: Current year profit/(loss) of subsidiaries
SIBL Investment Limited 8,049,079 (868,896)
16,335,646 4,228,677
Less: Non controlling interests of profit/(loss) attributable for current year
SIBL Securities Limited 7 4
SIBL Investment Limited 19 (2)
26 2
Less: Common income (Dividend) for elimination
SIBL Securities Limited - -
Profit/(Loss) attributable to parent 959,141,551 898,873,480
19(b) Non-controlling interest

Paid up capital 1,230,000,000 1,230,000,000
Retained earnings 41,560,062 33,835,172
Net Assets 1,271,560,062 1,263,835,172
SIBL Investment Limited

Paid up capital 250,000,000 250,000,000
Retained earnings 5,168,260 (2,880,818)
Net Assets 255,168,260 247,119,182
Non-controlling interests
SIBL Securities Limited, @ 0.000098% of net assets 1,226 1,219
SIBL Investment Limited, @0.00032% of net assets 613 594
Total non-controlling interest 1,840 1,814

31.12.2020 31.12.2019
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20 Contingent liabilities
20.1 Acceptances and Endorsements
Bill Bankers’ liabilities (DP) 16,435,379,400 16,354,279,800
Bill Bankers’ liabilities (BB/FO) 842,599,000 966,841,000
Bill Bankers’ liabilities (BB/LO) 3,615,452,346 3,870,411,000
Bill Bankers’ liabilities (EPZ) 319,459,000 539,231,000
Bill Bankers’ liabilities Others 116,982,000 200,899,000
21,329,871,746 21,931,661,800
20.2 Letter of Credit
L/C Bankers’ liabilities (DP) 3,786,200,000 5,581,415,000
L/C Bankers’ liabilities (BB/FO) 848,696,000 1,070,742,000
L/C Bankers’ liabilities (BB/LO) 1,798,280,000 1,974,818,000
L/C Bankers’ liabilities (Cash) 7,302,561,672 6,115,576,805
L/C Bankers’ liabilities (EPZ) 1,487,197,965 502,530,000
L/C Bankers’ liabilities (Others) 140,015,000 529,965,344
15,362,950,636 15,775,047,149
20.3 Letters of guarantees

Letters of guarantee 10,352,181,319 11,322,648,716
20.4 Bills for collection

In-ward bills for collection - -
Out-ward Bills for Collection 5,394,930,566 4,565,448,355
5,394,930,566 4,565,448,355
20.5 Other Contingent Liabilities - -
20.6 Other Commitments - -

Total Off-balance sheet items 52,439,934,267 53,594,806,020
Income Statement (Note-21 to Note-39)

Income:
Income from Investment (Note-21) 27,036,266,956 27,797,425,826
Income from Investment in Shares & Securities (Note-23) 762,379,471 760,574,012
Commission, Exchange and Brokerage Income (Note-24) 1,421,214,804 1,465,828,639
Other operating income (Note-25) 631,009,280 687,299,082
29,850,870,511 30,711,127,559
Expenses:
Profit paid on Deposits (Note-22) 19,484,793,192 18,428,552,565
Administrative expenses 3,567,609,542 3,395,575,890
Other operating expenses 1,870,591,036 2,167,195,355
Depreciation on Banking assets 584,665,633 377,693,254
25,507,659,402 24,369,017,064
Income over expenditure 4,343,211,109 6,342,110,494

31.12.2020 31.12.2019
Taka Taka
21 Income from Investment
Profit on Murabaha 120,787,294 206,043,784
Profit on Bai-Muazzal 18,174,056,468 18,263,667,034
Profit on Hire-Purchase 5,563,994,892 6,379,691,766
Profit on Musharka 21,534,594 32,436,760
Profit on Bai-Salam 86,416,082 83,033,729
Profit on Quard against MTDR, Scheme and others 614,418,851 532,992,282
Profit on Inland Document Bill Purchased 339,039,978 392,535,775
Profit on Foreign Document Bill Purchased 1,053,056,472 931,364,498
Profit on Ijarah 62,368,086 79,419,586
Profit on Investment against Mudaraba Deposit with other Banks and NBFIs 715,988,122 658,706,127
Profit on other investments (Card, Wakalat fee etc.) 208,442,820 213,653,686
Profit on Mudaraba 76,163,298 23,880,802
27,036,266,956 27,797,425,826
21(a) Consolidated income from investment

Add: Income from investment of subsidiaries of SIBL 78,569,068 74,611,249
SIBL Investment Ltd. 3,094,059 1,610,000
Grand total of consolidated investment income 27,114,836,024 27,872,037,075
22 Profit paid on Deposits

Profit paid on deposits
Mudaraba Savings Deposits (MSD) 814,767,804 647,757,594
Mudaraba short notice deposit (MSND) 386,923,535 448,010,965
Mudaraba term deposit (MTDR) 13,548,513,534 12,719,545,830
Cash waqf fund deposit 25,991,181 31,173,914
Profit paid on Scheme Deposits & others 3,914,166,276 3,128,872,205
18,690,362,330 16,975,360,508
Profit paid on borrowings 64,957,714 409,273,968

SIBL Mudaraba Subordinate Bond 729,473,148 1,043,918,089
Total profit paid on deposits and borrowings 19,484,793,192 18,428,552,565
22(a) Consolidated Profit paid on Deposits

Add: Income from investment of subsidiaries of SIBL 72,785,405 72,093,691
Grand total of consolidated Profit paid on Deposits 19,557,578,597 18,500,646,256
23 Income from Investment in Shares & Securities

Income from Investment in Islamic Bond 312,612,559 389,846,554
Income from Investment in Shares 196,283,426 7,073,878
Income from Mudaraba Subordinate Bond 209,645,890 142,991,669
Dividend Income 43,837,595 220,661,911
762,379,471 760,574,012
Social Islami Bank Ltd. has investment of Tk. 1245.00 crore in Bangladesh Govt.Islamic Investment Bond for which 2.75%, average rate of
income has been provided for January-December 2020. The nature of the Fund is to generate profit according to Mudaraba Principle.

31.12.2020 31.12.2019
Taka Taka
23(a) Consolidated income from Investment in Shares &
Securities
Social Islami Bank Ltd. 762,379,471 760,574,012
Add: Income from Investment in Shares & Securities of subsidiaries of SIBL 15,979,258 13,424,528
SIBL Investment Ltd. 3,562,302 953,580
Less: Common income for elimination
SIBL Securities Ltd. - -
Grand total of consolidated income from Investment in Shares & Securities 778,358,729 773,998,540
24 Commission, Exchange & Brokerage

Commission 646,370,203 682,433,291
Exchange income 774,844,601 783,395,348
1,421,214,804 1,465,828,639
24(a) Consolidated income from commission, exchange & brokerage

Add: Income from commission, exchange & brokerage of subsidiaries of SIBL 65,443,481 60,411,796
Grand total of consolidated income from commission, exchange & brokerage 1,486,658,285 1,526,240,435
25 Other Operating Income

P & T charge recovered 1,104,446 1,476,629
Courier Charges Recovery & Others 7,749,768 7,903,186
Services & charges 293,035,374 336,380,402
SWIFT/ Return charge recovered 44,920,212 51,928,649
Other charges (Note: 25.1) 284,199,480 289,610,215
631,009,280 687,299,082
25(a) Consolidated other operating income

Add: Other operating Income of subsidiaries of SIBL 1,775,222 1,779,938
Grand total of consolidated income from other operating income 632,784,502 689,079,020
25.1 Other Charges

Rent receipts 3,381,450 3,335,931
Income from sale of forms 89,900 96,420
Service charge on SIBL Cards 103,868,978 77,915,128
Notice pay earnings 6,773,104 5,972,795
Miscellaneous income 170,086,049 202,289,941
284,199,480 289,610,215
Miscellaneous income includes forfeiture account amount of taka 2,307,789.50 which is transferred from SIBL PF Account according to FRC
circular no.170/FRC/FRM/Proggapon/2020/2 Date: 07/07/2020

31.12.2020 31.12.2019
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26 Salary & Allowances
Basic Salary 1,394,824,420 1,316,385,514
Allowances 1,410,617,250 1,234,183,389
Bonus 461,895,812 544,200,196
L/E Salary & Allowances 137,115,797 144,104,421
Bank’s Contribution to Provident fund 132,001,355 127,084,546
Bank’s Contribution to Social Insurance fund 13,174,850 12,694,694
SIBL Group life Insurance Premium 4,358,232 4,211,130
3,553,987,716 3,382,863,890
26(a) Consolidated expenses for Salary and Allowance
Add: Salary and Allowance for subsidiaries 30,699,093 31,018,682
3,584,686,809 3,413,882,572
27 Rent, Taxes, Insurance & Electricity etc.

Rent, Rates & Taxes (note: 27.1) 182,655,810 332,865,298
Insurance (note: 27.2) 116,174,774 147,140,497
Electricity, Lighting & Water (note: 27.3) 91,170,155 93,005,865
390,000,739 573,011,660
27.1 Rent, Rates & Taxes

Rent, Rates & Taxes 386,615,353 332,865,298
Less: rent expenses under IFRS-16 * 203,959,543 -
182,655,810 332,865,298
*While implementing IFRS 16 (leases), the bank recorded interested expenses on lease liability and depreciation on right of use assets (ROU)
instead of charging rental expenses of Taka 203,959,543 (excluding VAT) in 2020 against those rental premises that have been treated as right of
use assets (ROU) (lease assets) however VAT on those rent has been charged as rent.
27(a) Consolidated expenses for rent, taxes, insurance & electricity

Add: Rent, Taxes, Insurance & Electricity etc. of subsidiaries 764,106 6,198,307
SIBL Securities Ltd. 764,106 6,198,307
390,764,845 579,209,966
Rent, Rates & Taxes
Office rent 5,094,024 6,198,307
Less: Adjsutment due to execution of IFRS 16 for the first time 5,094,024 -
- 6,198,307
VAT on office rent 764,106 6,198,307
Total Rent, Rates & Taxes 764,106 6,198,307

31.12.2020 31.12.2019
Taka Taka
27.1 Rents, Rates, Taxes, Insurance & Lighting etc.
Rents
Rent (Office) 369,208,140 324,458,510
Rent (Garage) 338,580 300,980
Rent (Godown & others) 6,570,388 4,989,087
376,117,108 329,748,577
Rates and Taxes 10,498,246 3,116,720
Total Rents, Rates & Taxes 386,615,353 332,865,298
27.2 Insurances
Insurance Premium in Counter 1,055,338 807,239
Insurace Premium in Transit 7,498,369 7,237,901
Insurance Premium Safe/Vault 7,739,869 6,034,278
Insurance Premium on deposit 96,184,464 129,712,448
Insurance Premium on Vehicle 1,886,030 1,605,403
Other Insurance 1,810,705 1,743,228
116,174,774 147,140,497
27.3 Lighting & Electricity

Lighting & Electricity Bill (Office) 82,396,953 82,788,662
Lighting & Electricity Charges (Office) 4,915,332 5,760,829
Sub Total 87,312,285 88,549,490
Water & Sewerage 3,857,869 4,456,375
91,170,155 93,005,865
28 Legal Expenses
Legal Fees & Charge 5,063,206 5,860,731
Stamp Duties 70,704 155,999
Other Legal Expenses 4,240,360 5,252,045
9,374,270 11,268,775
29 Postage, Stamps, Telecommunication etc.

Cable Network rent 467,202 325,203
Telephone charges 2,330,470 3,180,154
Mobile phone charges 3,561,603 3,244,988
6,359,275 6,750,345
29(a) Consolidated expenses for Postage, Stamps, Telecommunication etc.

Add: Postage, Stamps, Telecommunication etc. expenses for subsidiaries 974,494 2,026,095
SIBL Securities Ltd. 974,494 2,026,095
7,333,769 8,776,440

31.12.2020 31.12.2019
Taka Taka
30 Stationery, Printing, Advertisements etc.
Table Stationery 11,921,489 13,861,407
Printing & Stationery 42,374,132 63,353,438
News Paper & Magazine 20,125,696 24,510,840
Television & Radio 31,651,160 44,361,750
Neon Sign, Banner etc. 531,889 814,821
Other Publicity 16,003,209 14,093,877
122,607,574 160,996,133
30(a) Consolidated expense of Stationery, Printing, Advertisement etc.

Stationery, Printing, Advertisement expense of Subsidiaries of SIBL 301,991 477,675

SIBL Securities Limited. 301,991 477,675
SIBL Investment Limited. - -
122,909,565 161,473,808
31 Managing Director’s salary and allowances

Basic Salary 8,056,113 7,381,000
Allowances 3,101,613 3,000,000
Festival & other Bonus 2,464,100 2,331,000
13,621,826 12,712,000
32 Directors’ Fees & Meeting Expenses

Directors Fee 2,014,200 2,349,881
Meeting Expenses 2,772,636 7,148,803
4,786,836 9,498,684
32(a) Consolidated Directors’ fees & Meeting Expenses:

Directors’ Fees & Meeting Expenses of Subsidiaries of SIBL 536,000 419,500
5,322,836 9,918,184
33 Shariah Supervisory Committee’s Fees & Expenses
Shariah Council Meeting Expenses 74,629 446,507
74,629 446,507
34 Depreciation and Repair of Bank’s Assets

a) Depreciation of Bank’s Assets (Annexure A)
Land - -
Building 47,904,346 49,091,006
Furniture & Fixtures 81,779,457 79,975,897
Office Appliance & Equipment 148,850,317 149,430,092
Computer Software 18,923,554 18,135,533
Vehicles 11,959,117 14,505,903
Right of use Assets (RoU) 191,010,137 -
Books 72,187 78,416
500,499,115 311,216,849
b) Repair on Bank’s Assets

Building 331,740 180,456
Motor Car/ Vehicle 15,115,446 3,826,584
Furniture Fixture 3,281,586 3,415,073
Mechanical Appliances 13,924,926 16,005,681
Software Maintenance fee 1,315,800 1,261,250
Hardware Maintenance fee 18,180 704
IT Enable Service Charges 50,178,841 41,786,658
84,166,518 66,476,405
Total of Depreciation and repair of Bank’s Assets 584,665,633 377,693,254

31.12.2020 31.12.2019
Taka Taka
34(a) Consolidated balance of Depreciation
Add: Depreciation on assets of subsidiaries 5,822,570 1,406,763
Add: Repairs & Maintainance on assets of subsidiaries 703,590 810,805

SIBL Securities Ltd. 703,590 810,805
591,191,793 379,910,822
35 Other Expenses
Local conveyance 20,249,156 20,235,180
Petroleum, oil & lubricants 13,763,887 17,076,671
Entertainment expenses 34,107,282 47,688,493
Traveling allowances 13,397,742 39,274,222
Travelling Foreign 1,419,385 5,299,015
Bank charges 9,924,553 10,914,576
Uniform charges 1,613,771 1,845,270
Subscriptions to Institutions & Others 13,543,177 7,984,120
Banks’ clearing house charges 16,634 29,568
CIB Charges 558,860 1,251,930
Transportation charges 6,700,787 6,857,724
News paper, Journal & periodicals 98,162 190,721
Washing charges 1,463,624 984,332
Training expenses Academy/ Internal 26,940 605,358
Training expenses at outside Banks 499,227 2,085,724
Meeting expenses 720 34,928
Direct expenses on investment 3,078 52,219
Up keep of branches/office premises 6,909,990 6,703,808
Excise duty 1,603,345 1,246,150
Computer charges 13,315,012 17,025,558
Security Services 202,282,596 171,101,570
Cleaner Services 7,824,644 6,945,812
Others wages 218,034,048 186,695,326
Photocopy expenses 763,774 1,040,015
Photography expenses 113,255 118,429
Cash & Bank remittance charges 5,627,534 4,687,823
Honorarium 2,004,485 3,865,350
On-Line Expenses 36,682,138 36,214,592
ATM Rent Hardware 5,388,532 3,071,143
Professional & Rating Fees 11,867,274 42,048,887
Other Utility 35,957,380 6,153,839
Bond issue related Expense 11,185,000 3,974,300
Donation to Government 180,000,000 79,000
Donation to Others 557,695 209,299
CSR Ralated Expenditure 55,167,633 265,040,772
Fair value adjustment for shares and securities - 122,515,819
Gratuity expense 126,929,022 125,056,624
Finance cost on lease liabilities as per IFRS-16 48,400,969 -
Miscellaneous expenses 82,772,062 88,576,335
1,170,773,372 1,254,780,502

31.12.2020 31.12.2019
Taka Taka
35(a) Consolidated Other Expenses
Add:Other Expenses for SIBL Securities Limited 10,437,832 10,742,507
License, fees, renewals and incorporation expenses 8,752,272 7,570,217
Entertainment 782,891 833,903
Others 902,669 2,338,387
Other Expenses for SIBL Investment Limited 58,030 93,815

Incorporation and Other Regulatory expenses - 40,580
Bank charge and Excise duty 57,530 52,235
Others 500 1,000
1,181,269,234 1,265,616,824
36 Other Provision
Provision for other assets (note: 14.2) - 5,637,000
Mudaraba Profit Distribution (note: 14.6) 5,000,000 15,000,000
Provision for good borrower (note: 14.7) - 2,000,000
Provision for Climate Risk Fund (note:13.8) 10,000,000 1,000,000
Provision for Start-Up Fund (note:14.9) 15,509,355 -
30,509,355 23,637,000
36(a) Consolidated other provision

Add:Provision for subsidiaries
SIBL Securities Ltd.
Provision for general reserve 1,470,702 (920,894)
Provision for impairment of margin loan 4,193,333 3,090,496
Provision for diminution in value of investment 2,498,746 3,075,197
8,162,781 5,244,799
SIBL Investment Ltd. (Provision for diminution in value of investment) (2,660,502) 2,660,502
36,011,634 31,542,301
37 Provision against Investment, Off-Balance Sheet items & Others

Provision on classified investment 230,209,106 1,073,661,495
Provision on unclassified investment 329,524,380 2,085,452,904
Special General Provision-COVID-19 732,164,047 -
Provision on Off-Balance Sheet items (19,843,540) 25,329,739
Other provisions (note: 36) 30,509,355 23,637,000
1,302,563,348 3,208,081,138
37(a) Consolidated Provision against Investment, Off-Balance Sheet items & Others
Add:Provision for subsidiaries 5,502,279 7,905,301

SIBL Investment Ltd. (2,660,502) 2,660,502
1,308,065,627 3,215,986,439

31.12.2020 31.12.2019
Taka Taka
38 Provision for Income Tax
Current year provision (Note: 38.1) 1,482,531,120 1,593,092,009
Deferred Tax expense/(income) (Note: 38.2) 7,181,158 19,486,671
1,489,712,278 1,612,578,680
38(a) Consolidated Provision for Income Tax

Current year provision 15,676,408 12,311,797
Deferred Tax expense/(income) (74,670) (218,763)
SIBL Investment Limited 1,186,754 655,159
1,506,500,770 1,625,326,873
38.1 Current Year Tax Provision
Provision on tax has been calculated based on Income Tax Ordinance,1984 as amended upto 2020 by the Finance Act, considering the allowances
and disallowances.
38.2 Deferred Tax Expenses/(Income)

Defferred tax expense/(income) for liability/(asset) has been calculated as per Bangladesh Accounting Standard 12.
39 Earning Per Share (EPS)

SIBL has issued 1:1 right share for an amount of Taka- 2,987,815,750 as approved in its 242nd Board Meeting held on 02 March 2011 by the
Directors of the Board. Before right issue SIBL had a total capital of Taka- 2,987,815,750 as on 31.12.2010. The paid up capital was further
enhanced by an amount of Taka- 418,294,200, Taka-637,489,940, Taka-351,570,780, Taka-738,298,640, 812,128,500 and Taka-446,670,670 issued
as bonus share for the years ended 31 December 2010, 2012, 2015, 2017, 2018 and 2019. Now the total paid up capital after right issue and issue
of bonus shares amounts to Taka- 9,380,084,230 with a total no. of 938,008,423 shares having face value @ Taka- 10/share.
Net Profit after Tax 1,550,935,483 1,521,450,676

Number of ordinary shares outstanding 938,008,423 938,008,423
Earning Per Share (EPS) (Prior year Restated) 1.65 1.62
39(a) Consolidated Earning Per Share (CEPS)

Net Profit after Tax 1,567,271,105 1,525,679,352
Consolidated Earning Per Share (CEPS) (Prior year Restated) 1.67 1.63
Earnings per share has been calculated in accordance with IAS-33:” Earnings Per Share (EPS)”.
Earnings per share (EPS) increased compare to the last year mainly due to increase of net profit after tax.
39 (i) Net Asset Value (NAV) Per Share:

Net Asset Value (Consolidated) 18,096,429,231 17,312,127,963
Net Asset Value (Solo) 18,038,387,095 17,271,330,473
Net Asset Value (NAV) Per Share (Consolidated) (Prior year Restated) 19.29 18.46
Net Asset Value (NAV) Per Share (Solo) (Prior year Restated) 19.23 18.41

31.12.2020 31.12.2019
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39 (ii) Net Operating Cash Flows per share (NOCFPS):
Net Cash flow from operating activities (Consolidated) 3,627,418,172 18,322,383,329
Net Cash flow from operating activities (Solo) 3,612,826,261 18,322,043,775
Net Asset Value (NAV) Per Share (Consolidated) (Prior year Restated) 938,008,423 938,008,423
Net Operating Cash Flow Per Share (NOCFPS)(Consolidated) (prior year restated) 3.87 19.53
Net Operating Cash Flow Per Share (NOCFPS)(Solo) (prior year restated) 3.85 19.53
Net Operating Cash Flow per share decreased compare to the last year mainly due to decrease of customer deposit and cash outflow for
investment to customers.
Notes for Cash Flow Statement (Note-40 to Note-45)
40 Income from Investment

Investment profit receipt 27,036,266,956 27,797,425,826
Add: Opening profit receivable 665,595,298 472,885,826
Less: Closing profit receivable (528,810,265) (665,595,298)
27,173,051,989 27,604,716,354
40(a) Consolidated income from investment

Income from investment of SIBL 27,173,051,989 27,604,716,354
Income from investment of Subsidiaries of SIBL 78,569,068 74,611,249
SIBL Investment Ltd. 3,094,059 1,610,000
Grand total 27,251,621,057 27,679,327,604
41 Receipts from Other Operating Activities

Exchange income 737,593,057 728,949,739
Rent receipts 3,381,450 3,335,931
P & T charge recovered 1,104,446 1,476,629
Courier Charges Recovery & Others 7,749,768 7,903,186
Notice pay earnings 6,773,104 5,972,795
Miscellaneous income 170,086,049 202,289,941
Services & charges 293,035,374 336,380,402
SWIFT/ Return charge recovered 44,920,212 51,928,649
Service charge on SIBL Cards 103,868,978 77,915,128
Income from sale of forms 89,900 96,420
1,368,602,337 1,416,248,821
41(a) Consolidated receipts from Other Operating Activities

Receipts from Other Operating Activities of SIBL 1,368,602,337 1,416,248,821
Receipts from other operating activities of Subsidiaries of SIBL 1,775,222 1,779,938
1,370,377,559 1,418,028,758

31.12.2020 31.12.2019
Taka Taka
42 Payment to others
Rent (Office) 369,208,140 324,458,510
Rent (Garage) 338,580 300,980
Rent (Godown) 6,570,388 4,989,087
Rates and Taxes 10,498,246 3,116,720
Insurance Premium for cash in counter 1,055,338 807,239
Insurance Premium for cash in transit 7,498,369 7,237,901
Insurance Premium for cash in safe/ vault 7,739,869 6,034,278
Insurance Premium on deposit 96,184,464 129,712,448
Insurance Premium for vehicle 1,886,030 1,605,403
Other Insurance 1,810,705 1,743,228
Lighting and Electricity Bill (Office) 82,396,953 82,788,662
Lighting and Electricity Charges (Office) 4,915,332 5,760,829
Water and Sewerage 3,857,869 4,456,375
Legal Expenses 9,374,270 11,268,775
Directors Fees and Meeting Expenses 4,786,836 9,498,684
Shariah Supervisory Fees & Expenses 74,629 446,507
Audit Fees 920,000 920,000
Repairs and Maintenance 84,166,518 66,476,405
Zakat expenses 165,694,341 149,522,749
Other Expenses (note: 34) 1,170,773,372 1,254,780,502
2,029,750,248 2,065,925,283
42(a) Consolidated payment to others

Payment to others- Subsidiaries 12,557,058 18,322,434
SIBL Investment Limited 81,030 116,815
2,042,307,306 2,084,247,716
43 Reconciliation of Net Profit after Taxation & Operating Profit before changes in
operating assets & liabilities
Cash flows from operating activities
Net Profit after Taxation 1,550,935,483 1,521,450,676
(Increase)/Decrease Profit Receivable 136,785,033 (192,709,472)
(Increase)/Decrease Profit Payable on Deposit 1,007,229,908 1,744,045,315
Effects of exchange rate changes on cash & cash equivalents (37,251,544) (54,445,609)
Provision for Tax 1,489,712,278 1,612,578,681
Provision for Investment, Contingent Liability & Others 1,302,563,348 3,208,081,138
Depreciation & Amortization of Fixed Assets 500,499,115 311,216,849
Lease rent payable as per IFRS-16 (203,959,543) -
Income tax paid (1,296,182,842) (1,313,745,832)
Operating Profit before changes in operating assets & liabilities 4,450,331,235 6,836,471,746

31.12.2020 31.12.2019
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43(a) Consolidated Cash flows from operating activities
Net Profit after Taxation 1,567,271,131 1,525,679,354
(Increase)/Decrease Profit Receivable 136,785,033 (192,709,472)
(Increase)/Decrease Profit Payable on Deposit 1,007,229,908 1,744,045,315
Effects of exchange rate changes on cash & cash equivalents (37,251,544) (54,445,609)
Provision for Tax 1,506,500,770 1,625,326,874
Provision for Investment, Contingent Liability & Others 1,308,065,627 3,215,986,439
Depreciation & Amortization of Fixed Assets 506,321,685 312,623,612
Lease rent payable as per IFRS-16 (203,959,543) -
Income tax paid (1,312,378,550) (1,326,270,037)
Operating Profit before changes in operating assets & liabilities 4,478,584,514 6,850,236,475
44 Cash Increase/ Decrease in Other Assets

Stock of stationery, stamps and printing materials etc. (valued at cost) 36,210,869 36,651,315
Advance rent 81,946,417 236,783,450
Security Deposit 3,495,026 3,441,126
Branch Adjustments (SIBG) (Note: 9.1) 1,561,206,224 2,950,929,983
Suspense Accounts (Note: 9.2) 285,122,898 192,702,080
Other Prepayments 64,517,296 64,210,064
Receivable from SIBL Securities Ltd. 239,242,987 21,482,142
Protested Bills against Investment 325,014,570 325,014,570
Receivable from Off-shore Banking Unit 77,990,079 36,882,278
Dividend Receivable Account 555,193,696 562,130,020
Profit Receivable from Mudaraba Subordinated Bond 56,815,069 99,616,438
Others (Note: 9.3) 37,425,491 10,969,426
15,379,469,188 15,299,849,435
Difference between (2020, 2019) (79,619,753) 2,753,923,163
Net change in Other Assets 1,216,563,089 4,067,668,995
44(a) Consolidated cash increase/decrease in other assets

Cash Increase/ Decrease in Other Assets of subsidiaries 2,323,335,443 2,177,622,105
17,702,804,631 17,477,471,540
Difference between (2020, 2019) (225,333,091) 2,802,523,316
Consolidated net change in Other Assets 1,087,045,459 4,128,793,353

31.12.2020 31.12.2019
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45 Cash Increase/ Decrease in Other Liabilities
Adjusting A/C (Cr.) Balance 17,485,085 10,231,405
Other Payable 13,929,175 12,263,717
Compensation and Rent Suspense (note: 14.3) 3,579,826,001 2,870,657,332
BEFTN Adjustment Account 43,539,542 35,998,977
Parking Account 3,890 -
Lease liabilities as per IFRS-16 * 724,602,327 -
ATM Settlement for Q-Cash 31,962,950 23,642,698
4,411,348,970 2,952,794,130
Cash Increase/ (Decrease) in Other Liabilities 1,458,554,840 1,004,266,256

Difference between (2020 & 2019) 1,458,554,840 1,004,266,256
Add: Transfer to Provision for Investment from Write- off (In Yr. 2020) 9,647,534 155,621,173
Add: Zakat expense transferred to Sadaka Fund 165,694,341 149,522,749
Add: Lease rent Payable as per IFRS-16 203,959,543 -
Less: Zakat distributed during the year 93,451,718 81,040,968
Less: Mudaraba Profit distribution transferred during the year 15,000,000 -
Less: Written off/ Waiver of investment during the year 25,361,653 31,734,980
1,704,042,885 1,196,634,229
45(a) Consolidated cash increse/decrease in other liabilities

Cash Increase/ Decrease in other liabilities of Social Islami Bank Limited 4,411,348,970 2,952,794,130
Cash Increase/ Decrease in Other Liabilities of subsidiaries 408,558,265 328,766,448
4,819,907,235 3,281,560,578
Difference between (2020, 2019) 1,538,346,657 1,101,024,779
Other changes in other liabilities of Social Islami Bank Limited 245,488,047 192,367,974
Net change in Other Liabilities-Social Islami Bank Limited 1,783,834,704 1,293,392,753
46 Cash and Cash Equivalent

Cash in Hand 2,972,709,048 2,949,269,520
Balance with Bangladesh Bank & Sonali Bank Limited (as agent of Bangladesh Bank) 30,400,773,390 28,949,172,602
Balance with Other Banks & Financial Institutions-in Bangladesh 10,089,833,958 9,114,429,400
Balance with Other Banks & Financial Institutions-outside Bangladesh 611,795,207 1,084,292,499
44,075,111,603 42,097,164,021
46(a) Consolidated Cash and Cash Equivalent

Cash and Cash Equivalent of subsidiaries 569,357 105,720

SIBL Securities Limited. 544,157 100,519
SIBL Investment Limited. 25,201 5,201
44,075,680,961 42,097,269,741

31.12.2020 31.12.2019
Taka Taka
47 Number of Employees
The number of employees engaged for the whole year or part thereof who received a total remuneration of Tk. 36,000 p.a or above were 3100.
48 Audit Committee
The Board of Directors in its 390th meeting (Emergency) held on 30.03.2017 reconstituted the Board Audit Committee comprising with the
following:
Status with the

Sl. No. Name Status with the Bank
Committee
1 Professor A J M Shafiul Alam Bhuiyan Ph.D Independent Director Chairman
2 Mr. Md. Kamal Uddin Director Member
3 Dr. Md. Jahangir Hossain Director Member
The Audit Committee of the Board was duly constituted by the Board of Directors of the Bank and reconstituted in the 412th Board of Directors
Meeting held on 21.03.2018 in compliance with the Bangladesh Bank and Bangladesh Securities Exchange Commission Guidelines. The Audit
Committee assists the Board in fulfilling its oversight responsibilities where accountability stands for financial reporting process, Internal Control
System, Internal and External audit process, management of the risks of the Bank. The Committee review, monitor and assess the activities &
performance of the Bank and establish the policies and procedures which comply with the existing laws & regulations.
Meetings of the Audit Committee:
The Board Audit Committee had 143 nos. (One hundred forty three) Meetings in the previous years since inception in the year 2003, out of which
05 Meetings were conducted in the Year 2020 and the attendance of the members was as follows:
No. of Meetings No. of Meetings

Sl. No. Director
Held Attended
1 Professor A J M Shafiul Alam Bhuiyan Ph.D 5 5
2 Mr. Md. Kamal Uddin 5 5
3 Dr. Md. Jahangir Hossain 5 5
Disclosure by Audit Committee:

31.12.2020 31.12.2019
Taka Taka
The Committee reviewed the Quarterly Financial Statements as well as the yearly financial statements for the year 2020 of the Bank and
subsequently recommended to the Board for consideration and approval.
The Committee reviewed the integrity of the financial statements of the Bank to ensure that these reflect a true and fair view of the Bank’s
statement of affairs.
The Committee while reviewing the financial statements ensured that proper disclosure required under International Accounting Standards as
adopted in Bangladesh have been made and also complied with the Companies Act and various other rules and regulations applicable for
business.
The Committee discussed with the statutory auditors about the nature and scope of audit as well as had post-audit discussions to address areas
of concern.
The Committee discussed and reviewed compliance position of inspection report on various Branches, Division as well as Core Risk Management”
conducted by Bangladesh Bank and the “Management Letter on financial statements” for the year ended 31 December 2019” of SIBL submitted by
the external auditors for onward submission to the Board if needed.
The Committee also reviewed the financial statements/investments of the subsidiaries: SIBL Securities Limited and SIBL Investment Limited and
SIBL Foundation Hopital.
Pursuant to Condition No. 5.6.a of the Corporate Governance Guidelines issued by BSEC, the Committee reviewed the Internal Control System and
Financial Statements. The Committee observed that there was no conflict of interest or material defect in the internal control system of the Bank.
The Committee reviewed the Integrated Annual Health Report of SIBL for the year-2019 and recommended to the Board for consideration and
approval
The Committee approved the risk based yearly audit plan and gave direction to the internal auditors where appropriate for carrying out in depth
audit to ensure that the company or its assets are not exposed to undue risk.
The Committee reviewed the Internal Audit Reports and suggested appropriate actions where needed. The Internal Auditors were advised to
carryout audit of all the branches, sub-branches, agent banking outlet and other subsidiaries of the Bank as per risk based yearly audit plan.
The Committee reviewed IC&CD Manual for the year 2020 and suggested appropriate actions where needed. The Internal Auditors were advised
to carry out the instruction of the IC&CD Manual.
The Committee discuss the draft copy of “Whistleblower Protection Policy” for the employees of the Bank for onward submission to the Board
for approval.
The Committee recognized the observations of the Internal Audit Division regarding internal control, activities and suggestions made to improve
operational systems and procedures and their implementation.
The Committee reviewed the compliance position, policies, regulations and applicable law in general.
The Committee observed that risk management associated with the Banking business was adequately controlled.

31.12.2020 31.12.2019
Taka Taka
49 Related Party Disclosures
49.1 Name of the Firms / Business Organizations where the Directors of the Social Islami Bank Limited have got interest as on 31 December 2020:
Name of Firms/ Business Organizations

SL
Name Where the Directors of SIBL have got
No
interest
Professor Md. Anwarul Azim Arif
1 Chairman NIL
(Representative of Hasan Abasan (Pvt.) Ltd.)
2 Mr. Belal Ahmed Managing Director
Vice Chairman Unitex Spinning Limited
(Representative of Unitex Steel Mills Limited) Unitex Composite Mills Limited
Unitex LP Gas Limited
Unitex Petroleum Limited
Unitex Cement Limited
Unitex Steel Mills Limited
Padma Wears Limited
3 Md. Sayedur Rahman Managing Director
Vice Chairman Lodestar Fashions Limited
(Representative of Prasad Paradise Resorts Limited) Mid Asia Fashions Limited
4 Md. Kamal Uddin Managing Director
Director Chittagong Builders & Machinery Ltd.
(Representative of Lion Securities and Investment Limited) Merchant Securities Limited
Sifang Securities Limited
Director
Human Resources Development Co., Ltd.
Central Hospital (Pvt.) Ltd.
ASM Chemical Industries Ltd.
Universal Health Services & Research Ltd.
Chairman
Mercantile Insurance Company ltd.
Proprietor
CBM Consortium
Mrs. Nargis Mannan
5 Nil
Director
6 Director Nil
(Representative of Reliable Entrepreneurs Limited)
7 Mr. Arshadul Alam Managing Director
Director MK Electronics Ctg. (Yunusco)
(Representative of Leader Business Enterprise Limited) Jesco Capital Management Ltd.
Uni-Trade International Ltd.
Nishat Traders Ltd.
Chairman
Jaba and Brothers C&F (Pvt.) Ltd.
Director
Metro Diagnostic Center Ltd.
Jesco Bangladesh Ltd.
Bengal Corporation Ltd.
Bengal Center (Topkhana)
ABM Tower (Gulshan)
8 Mr. Ali Hasan Md. Mahmud Ribon Chairman
Director
M/S. Mahmud Ribon
(Representative of Dynamic Venture Limited)
9 Mrs. Jebunnesa Akbar
Director Nil
(Representative of Unitex Cement Limited)
10 Mr.Mahmudul Alam Proprietor
Director Paragon Transport, Carrying Contractor
(Representative of Global Trading Corporation Limited) Amir Traders, Commission Agents
11 Professor A J M Shafiul Alam Bhuiyan
Nil
12 Professor Mohammed Mizanur Rahman
Nil

31.12.2020 31.12.2019
Taka Taka
49.2 Significant contracts where Bank is a party and where in Directors have interest: Nil
49.3 Lending Policies to Related Parties:

Lending to related parties is effected as per requirements of Section 27(1) of the Bank Companies Act, 1991.
A Related Party Transaction
Name of the Nature of Outstanding

Name of Party Relationship Status
Director Investment Amount (Taka)
Funded Liability
SIBL Securities Ltd. NA Subsidiary Quard 9000.00 lac UC
SIBL Foundation Hospital & NA A concern of SIBL Quard- E- Hasana 10,900.17 Lac UC
Diagnostic Center Foundation
B Investment Policies to Related Parties

Lending to related parties is effected as per requirements of section 27 (1) of Bank Companies Act,1991
C Business other than Banking business with any related concern of the Directors as per Section 18 (2) of the Bank Companies Act, 1991: Nil
D Investments in the securities of Directors and their related concern: Nil
E Shares issued to Directors and Executives without consideration or exercisable at discount: Nil
50 Post Balance Sheet events (IAS-10)

No material events occurring after balance sheet date came to our notice, which could affect the values reported in the financial statements
significantly.
1. Dividend
The Board of Director has authorized the financial statements for issue on and recommended stock dividend @ 5% & Cash dividend @ 5 % for
the year ended 31 December 2020.
51 General
(i) Figures appearing in these financial statements have been rounded off to the nearest Taka.
(ii) The expenses, irrespective of capital or revenue nature, accrued/due but not paid have been provided for in the books of the Bank.
(iii) Figures of previous year have been rearranged wherever necessary to conform the current year’s presentation.
(iv) All types of financing made to the clients have been shown under the head ‘Investment’ whereas investment made in different shares and
securities of Government and others companies are shown as investment shares and securities.
(V) The Bank incurs expenditure in relation to its Corporate Social Responsibility (CSR) throughout the year. The budget for the CSR expenditures
are met up from various source including zakat and other sources. The Climate Risk Fund is also a part of this CSR expenditures.

SOCIAL ISLAMI BANK LIMITED Annexure-A
SCHEDULE OF FIXED ASSETS INCLUDING PREMISES
(Amounts in Taka)
C O S T / R E V A L U E D* D E P R E C I A T I O N
Written down
Balance as Disposal/ Rate of Transfer/ value as at
Particulars Additions Balance as Charged
on Transfer Balance at Depreciation Adjustment Balance at
during the on 01 Jan during the
during 31 Dec 2020 during the 31 Dec 2020 31 Dec 2020
year 2020 year
01 Jan 2020 the year year
Land 12,330,000 - - 12,330,000 - - - - 12,330,000
Building 2,320,220,714 - - 2,320,220,714 2.50% 404,038,934 - 47,904,346 451,943,280 1,868,277,435
Furniture & Fixtures 1,257,167,455 91,133,805 - 1,348,301,260 10% 466,111,881 - 81,779,457 547,891,338 800,409,921
Office Equipment 1,621,292,105 169,677,766 - 1,790,969,871 20% 930,956,342 - 148,850,317 1,079,806,659 711,163,211
Software 247,489,817 44,491,245 - 291,981,062 10% 72,722,101 - 18,923,554 91,645,655 200,335,407
Vehicles 141,721,354 8,806,567 - 150,527,921 20% 121,051,952 - 11,959,117 133,011,069 17,516,852
Right of use Assets (RoU) - 1,011,325,434 - 1,011,325,434 - 191,010,137 191,010,137 820,315,297
Books 1,739,549 24,729 - 1,764,278 10% 1,030,039 - 72,187 1,102,226 662,052
31 December 2020 5,601,960,993 1,325,459,546 - 6,927,420,539 1,995,911,251 - 500,499,115 2,496,410,364 4,431,010,176

31 December 2019 5,248,229,118 353,731,874 - 5,601,960,993 1,684,694,401 - 311,216,849 1,995,911,251 3,606,049,743
* Details of revaluation of Fixed assets is shown in note:18.

SOCIAL ISLAMI BANK LIMITED Annexure-B
CONSOLIDATED SCHEDULE OF FIXED ASSETS
(Amounts in Taka)
C O S T/REVALUED D E P R E C I A T I O N
Disposal/ Transfer/ Written down
Balance Additions Rate of Balance Charged
Particulars Transfer Balance at Depreciation Adjustment Balance at value as at
as on during the as on during 31 Dec 2020
during 31 Dec 2020 during the 31 Dec 2020
01 Jan 2020 year 01 Jan 2020 the year
the year year

Land 12,330,000 - - 12,330,000 - - - - 12,330,000
Building 2,320,220,714 - - 2,320,220,714 2.50% 404,038,934 - 47,904,346 451,943,280 1,868,277,434
Furniture & Fixtures 1,264,310,200 91,335,082 1,355,645,282 10% 468,411,931 - 82,208,233 550,620,164 805,025,118
-
Office Equipment 1,632,507,486 170,492,658 1,803,000,144 20% 940,157,282 - 149,472,902 1,089,630,184 713,369,960
Software 250,663,457 44,491,245 295,154,702 10% 75,085,726 - 19,240,918 94,326,644 200,828,058
Vehicles 141,721,355 8,806,567 - 150,527,922 20% 121,051,952 - 11,959,117 133,011,069 17,516,853

-
Right of use Assets (RoU) - 1,024,437,539 1,024,437,539 195,463,982 195,463,982 828,973,557
Books 1,739,550 24,729 - 1,764,279 10% 1,030,040 - 72,187 1,102,227 662,052
31 December 2020 5,623,492,761 1,339,587,820 - 6,963,080,582 2,009,775,866 - 506,321,685 2,516,097,550 4,446,983,032

31 December 2019 5,269,405,357 354,087,403 - 5,623,492,761 1,697,152,254 - 312,623,611 2,009,775,866 3,613,716,895
SOCIAL ISLAMI BANK LIMITED Annexure-C
BALANCE WITH OTHER BANKS IN FOREIGN CURRENCIES
[REFERRED TO NOTE 4.2 OF THESE FINANCIAL STATEMENTS]
31.12.2020 31.12.2019
Currency Amount in Conversion Amount in Conversion
SL Name of the Banks Amount in Amount in
Name Foreign rate per unit Foreign rate per unit
BDT. BDT.
Currency F.C. Currency F.C.
1 SCB, MUMBAI ACUD 28,014.80 84.80 2,375,686 437,019.61 84.90 37,102,965
2 SUMMIT Bank, KARACHI ACUD 30,436.82 84.80 2,581,076 75,458.64 84.90 6,406,439
3 SONALI Bank, KOLKATA ACUD 114,495.92 84.80 9,709,380 171,578.79 84.90 14,567,039
4 MASHREQ Bank, MUMBAI ACUD 15,464.88 84.80 1,311,439 569,235.68 84.90 48,328,109
5 NEPAL BANGLADESH Bank ACUD 39,231.86 84.80 3,326,905 8,567.36 84.90 727,369
6 Bank OF BHUTAN, PHUENTSHOLING ACUD 101,416.35 84.80 8,600,218 80,809.10 84.90 6,860,693
7 UNITED Bank OF INDIA ACUD 43,121.30 84.80 3,656,734 189,437.33 84.90 16,083,229
8 AB Bank, MUMBAI ACUD 228,255.70 84.80 19,356,334 341,814.61 84.90 29,020,060
9 MEEZAN Bank LIMITED ACUD 331,179.89 84.80 28,084,419 48,309.53 84.90 4,101,479
10 MCB Bank,KARACHI,PAKISTAN ACUD 1,105.78 84.80 93,771 1,805.78 84.90 153,311
11 AXIS Bank LIMITED ACUD 109,377.58 84.80 9,275,339 (72,599.71) 84.90 (6,163,715)
12 HDFC Bank LTD., MUMBAI ACUD 337,035.08 84.80 28,580,946 99,050.35 84.90 8,409,375
13 MASHREQ Bank , NEW YORK, (OBU) USD 402,578.04 84.80 34,139,061 474,032.05 84.90 40,245,321
14 MASHREQ Bank PSC, NEW YORK, USA USD 596,346.70 84.80 50,570,856 3,195,038.56 84.90 271,258,774
15 SCB, NY, USA USD 4,209,384.53 84.80 356,960,438 6,029,595.94 84.90 511,920,528
16 KOREA EXCH. Bank,KOREA USD 4,364.42 84.80 370,108 948.76 84.90 80,550
17 HABIB AMERICAN Bank USD 410,025.39 84.80 34,770,604 123,497.51 84.90 10,484,939
18 COMMERZ Bank AG, FRANKFURT USD 34,437.27 84.80 2,920,318 9,715.50 84.90 824,846
19 MASHREQ Bank, PSC MUMBAI ACU EURO 437.92 104.14 45,607 437.92 95.06 41,630
20 SCB, FRANKFURT EURO 20,171.91 104.14 2,100,683 471,972.69 95.06 44,869,295
21 COMMERZ Bank AG, FRANKFURT EURO 25,712.97 104.14 2,677,857 162,491.89 95.06 15,446,890
22 SCB, LONDON, UK GBP 6,082.13 114.79 698,148 135,975.79 111.34 15,139,253
23 SCB, TOKYO JPY 502,880.00 0.82 412,663 288,603.00 0.78 224,443
24 Bank AL JAZIRA RIYAL 702.50 22.60 15,874 360,500.00 22.63 8,159,680
25 RIYAD BANK RIYAL 405,400.00 22.60 9,160,743 -
Total 611,795,207 1,084,292,499

SOCIAL ISLAMI BANK LIMITED Annexure-D
DETAILS INFORMATION OF INVESTMENT MORE THAN 10% OF BANK’S TOTAL CAPITAL
Taka in Crore
Outstanding as on 31 December 2020
Sl no. Name of client
Funded Non-funded Total
1 1. PowerPac Mutiara Keraniganj Power Plant Limited & its sister concerns, 566.60 68.27 634.87
2. PowerPac Mutiara Jamalpur Power Plant Limited,
3. PowerPac Holdings Ltd.
4. PowerPac Mutiara Khulna Power Plant Ltd.
5. Powerpac
2 i. Bashundhara Import Export Limited 305.21 21.97 327.18

ii. Bashundhara Steel & Engineering Ltd.
iii. Bashundhara City Development Limited.
3 i. Bashundhara Industrial Complex Ltd. 482.64 143.70 626.34

ii. East West Media Group
iii. Bashundhara Infrastructure Ltd
4 Bashundhara Multi Food Products Ltd & Sundarban Industrial Complex Ltd. 169.45 383.66 553.11
5 Infinia Spinning Mills Ltd. 296.57 185.04 481.61
6 i.Western Dresses Ltd. & its sister concerns- 433.00 58.51 491.51
ii. MNC Apparels Ltd.
iii.Kimia Washing Industries Limited
iv. NASSA BASIC WASH LTD.
7 i. Orion Infrastructure Ltd. & its sister concerns 576.09 2.58 578.67
ii. Orion Agro Products Ltd.
iii. Orion Power Meghnaghat Ltd.
iv. Belhasa Accom JV. Ltd.
v. Panbo Bangla Mushroom Limited
vi. Orion Power Unit-2 Dhaka Limited
vii. Orion Pharma Ltd.
8 i.Amber Denim Mills Limited & its sister concerns- 309.84 126.18 436.02
ii. Amber Denim LTd,
iii. Amber Rotor Mills Ltd.
iv.Amber Rotor Spinning Mills Ltd.
v. Amber Jeans & Washing Ltd.
9 SQ Birichina Limited 258.46 54.63 313.09
10 Badsha Textile 92.05 - 92.05
11 Mir Akhter Hossain Limited, 149.78 95.67 245.45

Mir Telecom Limited
12 M/S. Shah Amanat Agency 425.09 - 425.09
13 i. Base Paper Ltd. and it’s sister concerns- 324.04 41.35 365.39
ii.Base Fashion Limited
iii.Zayantex Limited iv.Base Technologies Limited v.Base Paper Ltd.
vi.Akash CNG Filling Limited
14 i.M/S. Islam Brothers & Co. & its sister concerns- 465.97 - 465.97
ii.Anwara Mannan Textile Mills Ltd.
iii.Juvenile Construction Ltd.
iv. RS & T International
v. Aman Feed Ltd.
vi. Aman Shipyard Ltd.
15 M/S. Sonali Traders 400.07 - 400.07
16 Dong Bang Dyeing Ltd. 369.69 47.28 416.97

Outstanding as on 31 December 2020
Sl no. Name of client
Funded Non-funded Total
17 i.M/S. Rabiul Islam & its sister concerns- 417.18 0.00 417.18
ii.M/s. Rhythm Trading
iii.A R Cement Mills Ltd.
iv.Ehsan Cement Industries Ltd.
V. RMR Poultry & Hatchery Ltd.
vi.A.R. Specialized Auto Rice Mills Ltd.
18 i.M/S. Millennium Enterprise, & its sister concerns- 184.13 41.55 225.68
ii.Panama Composite Textile Mills Ltd.
iii.O.N Spinning Mills Ltd.
19 i. S. Alam Brothers Ltd. & it’s sister concerns 443.03 56.22 499.25
ii. S. Alam Cold Rolled Steels Limited.
iii. S. Alam Steels Limited
iv. S. Alam Refined Sugar Industries Limited
Ruby Food Products Ltd. & Its Allied Concern, Masud & Brothers , BSM Syndicate
20 M/S Mars Textile Ltd. 302.05 53.33 355.38
21 Dong Bang Textile Ltd. 294.60 43.15 337.75
22 Ronghdhanu Builders (Pvt) Ltd., Mehedi Mart 356.14 - 356.14
23 i. DADA ENGINEERING LIMITED & sister concerns- 69.57 36.62 106.19

ii. DADA ACCESSORIES LTD.
iii. DADA ZIPPER LTD
iv. DADA BAG INDUSTRIES LTD
v. JAMUNA SPINNING MILLS LTD.
vi. SHAMEEM SPINNING MILLS LTD.
vii. JAMUNA ELECTRONICS AND AUTOMOBILES LTD.
viii. Jamuna Denims Ltd.
ix. JAMUNA SPINNING MILLS LTD. (Unit 02)
x. Daily Jugantor.
24 i. Abul Khair Steel Ltd. & its sister concerns- 0.00 24.35 24.35
ii. Abul Khair Ltd.
iii. A.K.CORPORATION LTD
iv.Abul Khair Consumer
v. Shah Cement Industries Ltd.
vi. Abul Khair Ceramic Industries Ltd.
vii.Abul Khair Steel Melting Ltd.
viii. Abul Khair Strip Processing Ltd.
ix. Abul Khair Ltd.
25 i. Thermax Textile Mills Ltd. & its sister concerns- 239.04 86.06 325.10
ii. Thermax Knit Yarn Ltd.
iii. Thermax Spinning Ltd.
iv. Thermax Melange Spinning Mills Ltd., v.Thermax Check Fabrics Limited
vi. Adury Apparels Ltd.
vii.Adury knit compsite.
26 i. Infinia Composite Textiles Limited 77.63 139.25 216.88

ii. Infinia Chemicals Limited
27 i. Mahbub Brothers(Pvt.) Ltd. & sister concerns- 229.88 28.74 258.62

ii. M/s. Pubali Traders,
iii. Rishad Enterprise
iv. ARK-MBPL JV.
v. Best Golden Flour Mills Ltd
28 Ruby Food Products Ltd. 230.52 47.10 277.62
29 LUB-RREF (BANGLADESH) LIMITED 274.55 23.66 298.21
30 i. Nasrin Agriculture Industries Limited & its sister concerns- 346.55 88.30 434.85
ii. M/s. Al-Habib Enterprise and its sister concern M/s. H R Feed
iii. M/s. Nutrila Feed
31 TecTonics 345.04 - 345.04
32 Nitol Motors Ltd. 151.71 18.12 169.83
Grand Total 9,586.17 1,915.29 11,501.46

SOCIAL ISLAMI BANK LIMITED Annexure-E
HISTORY OF PAID-UP CAPITAL
Value of
Face Value Cumulative
Cumulative issued Capital
Years Declaration No. of Share per Share value of
no. of Shares for the year
(Taka) Capital (Taka)
(Taka)
1995 Initial Capital 118,380 1,000 118,380 118,380,000 118,380,000
1996 No Dividend - - 118,380 - 118,380,000
1997 6.43% Bonus issue for the year 1996 7,620 1,000 126,000 7,620,000 126,000,000
1998 No Dividend - - 126,000 - 126,000,000
1999 Right Share Issued 74,000 1,000 200,000 74,000,000 200,000,000
Placement 50,000 1,000 250,000 50,000,000 250,000,000

2000
Initial Public Offer 10,000 1,000 260,000 10,000,000 260,000,000
2004 Bonus Issue (For the years 2001, 2002, 2003) 325,000 1,000 585,000 325,000,000 585,000,000
2005 No dividend - - 585,000 - 585,000,000
2006 No dividend - - 585,000 - 585,000,000
2007 1:1 Right Share 5,345,550 100 11,195,550 534,555,000 1,119,555,000
10% Bonus Issue for the year 2008 1,309,879 100 14,408,672 130,987,900 1,440,867,200
2009
1:1 Right Share 12,508,587 100 26,917,259 1,250,858,700 2,691,725,900
14% Bonus Issue for the year 2010 41,829,420 10 340,610,995 418,294,200 3,406,109,950
2011
1:1 Right Share 298,781,575 10 639,392,570 2,987,815,750 6,393,925,700
2014 12% Cash dividend for the year 2013 - 10 703,141,564 - 7,031,415,640
2018 10% bonus issue for the year 2017 73,829,864 10 812,128,506 738,298,640 8,121,285,060
2019 10% bonus issue for the year 2018 81,212,850 10 893,341,356 812,128,500 8,933,413,560
2020 5% Bonus & 5% cash Issue for the year 2019 44,667,067 10 938,008,423 446,670,670 9,380,084,230

Annexure-F
STATEMENT OF CORPORATE INCOME TAX STATUS
(Amount in Taka)
Advance Tax/TDS
Accounting Assessment Tax Provision as Tax as per
/Settlement fee/ Present Status
Year Year per accounts assessment Order
Appeal fee
2004 2005-2006 68,610,851 81,410,851 139,584,498 Pending at High Court Division of Supreme Court
2005 2006-2007 24,391,126 42,284,322 42,101,314 Completed
2006 2007-2008 59,825,178 85,135,927 85,135,927 Completed
2012 2013-2014 1,301,591,387 1,344,746,694 1,455,548,339 Pending at High Court Division of Supreme Court
2013 2014-2015 802,951,284 876,386,844 1,223,045,189 Pending at High Court Division of Supreme Court
2017 2018-2019 2,063,450,826 1,326,968,492 1,949,246,472 Submitted to the Appellate Tribunal
2018 2019-2020 2,227,743,967 1,128,245,770 2,545,214,694 Submitted to the Ist Appeal
2019 2020-2021 1,593,092,009 1,126,392,864 - Return Submitted
2020 2021-2022 1,482,531,120 785,893,610 - Return not yet Submitted

Annexure- G

CALCULATION OF DEFERRED TAX LIABILITY
FOR THE YEAR ENDED 31.12.2020
Assets:
D. Tax Liability /
Assets Description Tax Base Acounting Base Difference Tax Rate
(Assets)
Building 458,121,877 959,927,197 501,805,321 37.50% 188,176,995
Furniture & Fixture 751,649,375 800,409,921 48,760,547 37.50% 18,285,205
Mechanical Appliances 403,966,561 711,163,211 307,196,650 37.50% 115,198,744
Software 37,697,307 200,335,407 162,638,100 37.50% 60,989,288
Books 228,246 662,052 433,807 37.50% 162,677
Motor Vehicles 41,840,400 17,516,852 - - -
Sub-total 1,693,503,764 2,690,014,641 1,020,834,424 382,812,909
DTL on revaluation surplus
Land - 10,218,377 4.00% 408,735
Building 898,131,861 37.50% 336,799,448
Sub-total 337,208,183
Total deferred tax liability 720,021,092
Liability:
Amount to be written off in

751,504,632 (751,504,632) 37.50% (281,814,237)
future
Sub-total - 751,504,632 (751,504,632) (281,814,237)
Grand Total of deferred Tax Liability as on 31.12.2020 438,206,855

Annexure-H
OFF-SHORE BANKING UNIT (OBU)
BALANCE SHEET
31.12.2020 31.12.2019
Note(s)
USD Taka USD Taka
PROPERTY AND ASSETS
Cash
Cash in hand (Including Foreign Currencies) - - - -
Balance with Bangladesh Bank & its Agent Banks - - - -
(Including Foreign Currencies)
- - - -
Balance with other Banks and Financial Institutions 3
In Bangladesh - - - -
Outside Bangladesh 815,963 69,194,558 1,291,507 109,648,944
815,963 69,194,558 1,291,507 109,648,944
Placement with Banks & other Financial Institutions - - - -

Investments in Shares & Securities - - - -
Government - - - -
Others - - - -
- - - -
Investments
General Investment etc. 4 50,801,816 4,308,095,641 26,071,608 2,213,479,499
Bills Purchased and Discounted - - - -
50,801,816 4,308,095,641 26,071,608 2,213,479,499
Fixed Assets including Premises, Furnitures and Fixtures 5 223 18,878 278 23,598
Other Assets 6 484,756 41,107,801 434,420 36,882,278
Non Banking Assets
Total Assets 52,102,758 4,418,416,878 27,797,813 2,360,034,320

Liabilities
Borrowing from Banks & other Financial Institutions 7 47,801,174 4,053,637,881 17,525,210 1,487,890,290
Deposits and Other Accounts 8 3,403,220 288,596,821 9,020,430 765,834,530
Mudaraba Savings Deposits - - - -
Mudaraba Term Deposits 8.1 3,000,000 254,403,300 8,948,438 759,722,389
Other Mudaraba Deposits - - - -
Al-Wadeeah Current & Other Deposit Accounts 8.2 403,220 34,193,521 71,992 6,112,141
Bills Payable - -
Other Liabilities 898,363 76,182,177 1,252,173 106,309,500
Deffered Tax Liabilities/ (Assets)
Total Liabilities 52,102,758 4,418,416,878 27,797,813 2,360,034,320
Capital/Shareholders’ Equity
Paid-up Capital - - - -
Statutory Reserve - - - -
Foreign currency translation gain/(Loss) - - - -
Retained Earnings - -
Total Shareholders’ Equity - - - -
Total Liabilities & Shareholders’ Equity 52,102,758 4,418,416,878 27,797,813 2,360,034,320

31.12.2020 31.12.2019
Note(s)
USD Taka USD Taka
Off-Balance Sheet Items
Acceptances and Endorsements - - - -

Irrevocable Letters of Credit (including Back to Back Bills) - - - -
Letters of Guarantee - - - -
Bills for Collection - - - -
Other Contingent Liabilities - - - -
Total - - - -
OTHER COMMITMENTS
Documentary credits and short term trade related transactions

Forward assets purchased and forward deposits placed - - - -
Undrawn note issuance and revolving underwriting facilities - - - -
Undrawn formal standby facilities, credit lines and other commit-
- - - -
ments
Total - - - -
Total Off Balance Sheet Items including Contingent Liabilities - - - -

Annexure-H
PROFIT AND LOSS ACCOUNT
31.12.2020 31.12.2019
USD Taka USD Taka
Investment Income 2,477,113 210,061,926 1,679,016 142,548,423
Less: Profit paid on Deposits (1,589,724) (134,810,330) (442,588) (37,575,714)
Net Investment Income 887,389 75,251,596 1,236,428 104,972,708
Commission, Exchange and Brokerage - - - -

Other Operating Income 10,751 911,703 15,467 1,313,172
Total Operating Income 898,140 76,163,298 1,251,895 106,285,880
Salary & allowances 87,051 7,382,024 66,594 5,653,860

Rent & Utilities - - - -
Depreciation on fixed assets 56 4,720 69 5,900
Others - - - -
Total Operating Expenses 87,107 7,386,743 66,664 5,659,760
Profit/(Loss) before Provision

Specific provisions for Investment - - - -
General Provisions for Investment - - - -
General Provisions for off-Balance Sheet exposure - - - -
Total Provision - - - -
Total Profit/(Loss) before Tax 811,034 68,776,555 1,185,231 100,626,121
Provision for Income Tax - - - -
Net Profit/(Loss) after Tax 811,034 68,776,555 1,185,231 100,626,121

Annexure-H

CASH FLOW STATEMENT
31.12.2020 31.12.2019
USD Taka Taka
Investment Income receipt 2,477,113 210,061,926 142,548,423
Profit paid on deposits (1,589,724) (134,810,330) (37,575,714)
Dividend receipts - - -
Fees & commission receipt - - -
Cash payments to employees (87,051) (7,382,024) (5,653,860)
Cash payments to suppliers - - -
Income tax paid - - -
Receipts from other operating activities 10,751 911,703 1,313,172
Payments for other operating activities - - -
Operating profit before changes in operating assets and
811,089 68,781,275 100,632,020
liabilities
Changes in operating assets and liabilities
Statutory deposits - - -
Net trading securities - - -
Investments to other banks - - -
Investment to customers (24,730,208) (2,094,616,142) (151,618,107)
Other assets (50,336) (4,225,523) 25,599,218
Deposits from other banks 30,275,964 2,565,747,591 (246,712,585)
Deposits received from customers (5,617,210) (477,237,709) 424,001,060
Other liabilities on account of customers - - -
Trading liabilities - - -
Other liabilities (1,164,899) (98,908,598) (317,175,215)
Sub Total (1,286,689) (109,240,381) (265,905,629)
A. Net Cash flow from operating activities (475,599) (40,459,106) (165,273,609)
Proceeds from sale of securities - - -
Payment for purchases of securities - - -
Proceeds from sale of fixed assets - - -
Purchases of property, plant & equipment’s 56 4,720 5,900
Purchase/Sale of subsidiaries - - -
B. Net Cash flows from investing activities 56 4,720 5,900
Receipts from issue of debt instruments - - -
Payments for redemption of debt instruments - - -
Receipts from issue of right shares/ordinary share - - -
Dividend paid in cash - - -
C. Net Cash flow from financing activities - - -
Net increase/(decrease) in cash & cash equivalents
D. (475,544) (40,454,387) (165,267,711)
(A+B+C)
E. Cash and cash equivalents at the beginning of the year 1,291,507 109,648,944 274,916,654
F. Cash and cash equivalents at the end of the year (D+E) 815,963 69,194,558 109,648,944

Annexure-H
1 STATUS OF THE UNIT

The Bank obtained the Off-shore Banking Unit (“the Unit”) permission vide letter No. BRPD(P-3)744(119)/2010-4652, dated: 11 November, 2010.
The Bank commenced operation of this unit from 02 May 2012. The Off-shore Banking Unit is governed under the rules and guidelines of the
Bangladesh Bank. Its office is located at SIBL Head Office, City Center 90/1, Motijheel Commercial Area, Dhaka 1000.
1.1 Principal activities

The principal activities of the unit are to provide all kinds of commercial banking services to its customers through its off-shore Banking Units in
Bangladesh.
2 SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION OF FINANCIAL STATEMENTS
2.1 Basis of accounting

The Off-shore Banking Unit maintains its accoun ng records in USD from which accounts are prepared according to the Bank Companies Act,
1991, International Accounting Standards (IAS), International Financial Reporting Standard (IFRS) and other applicable directives issued by The
Bangladesh Bank, in particular, Banking Regulations and Policy Department (BRPD) Circular No. 15 (09 November 2009).
2.2 Use of estimates and judgments

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which
the estimate is revised and in any future periods affected.
2.3 Foreign currency transaction
a) Foreign currencies translation

Foreign currency transactions are converted into equivalent Taka using the ruling exchange rates on the dates of respective transactions as per
IAS-21” The Effects of Changes in Foreign Exchange Rates”. Foreign currency balances held in US Dollar are converted into Taka at weighted
average rate of inter-bank market as determined by Bangladesh Bank on the closing date of every month. Balances held in foreign currencies other
than US Dollar are converted into equivalent US Dollar at buying rates of New York closing of the previous day and converted into Taka equivalent.
b) Commitments
Commitments for outstanding forward foreign exchange contracts disclosed in these financial statements are translated at contracted rates.
Contingent liabilities/commitments for letter of credit and letter of guarantee denominated in foreign currencies are expressed in Taka terms at
the rates of exchange ruling on the balance date.
c) Translation gains and losses

The resulting exchange transaction gains and losses are included in the profit and loss account, except those arising on the translation of net
investment in foreign subsidiary.
Cash flow statement

Cash flow statement has been prepared in accordance with the International Accounting Standard-7 “ Cash Flow Statement” under direct method
as recommended in the BRPD Circular No. 14, dated June 25, 2003 issued by the Banking Regulation & Policy Department of Bangladesh Bank.
2.4 Reporting period

These financial statements cover from January 01 to December 31, 2020.
2.5 A provision is recognised in the balance sheet when the unit has a legal or constructive obligation as a result of a past event and it is probable
that an outflow of economic benefit will be required to settle the obligations, in accordance with the IAS 37 “Provisions, Contingent Liabilities and
Contingent Assets”.
2.6 Profit income
In terms of the provisions of the IFRS-15 “Revenue from contract with customer”, the profit income is recognized on accrual basis.
Fees and commission income

Fees and commission income arises on services provided by the units are recognized on a cash receipt basis. Commission charged to customers
on letters of credit and letters of guarantee are credited to income at the time of effecting the transactions.
2.7 Profit paid and other expenses

In terms of the provisions of the IAS - 1 “Presentation of Financial Statements” interest and other expenses are recognized on accrual basis.
2.8 Allocation of common expenses

Operating expenses in the nature of salary, rent, rates and taxes, management expenses, printing stationery, etc. are allocated as common expense
rather separately accounted for in the financial statements.
3 BALANCE WITH OTHER BANKS AND FINANCIAL INSTITUTIONS

Balance with other Banks and Financial Institutions consists nostro account balance of OBU unit of SIBL which is held with Mashreq Bnak, New
York.
4 GENERAL INVESTMENTS
a) General investments of Off-shore Banking Units are stated in the balance sheet on net basis.
b) Profit is calculated on a daily product basis but charged and accounted for on accrual basis. Profit is not charged on bad and loss investments
as per guidelines of the Bangladesh Bank. Records of such interest amounts are kept in separate memorandum accounts.
5 FIXED ASSETS
Fixed assets includes Furnitures and office equipments used by the employees of OBU unit.
6 OTHER ASSETS
Other assets include profit receivable from investment clients which are accounted for on accrual basis as per relative accounting standards.
7 BORROWING FROM BANKS & OTHER FINANCIAL INSTITUTIONS

Borrowing from Banks & other Financial Institutions includes amount received from SIBL as part of fund which will be returned/adjusted in due
course, balance of which is eliminated in the consolidated balance sheet of SIBL to avoid improper double reflection of fund.
8 DEPOSITS AND OTHER ACCOUNTS
8.1 Mudaraba Term Deposits

Mudaraba Term Deposits includes deposits procured from various local and foreign banks/institutions which includes:
among the foreign banks/institutions:
1. Alahli Bank of Kuit 2. Indusind Bank Ltd. India
8.2 Al-Wadeeah Current & Other Deposit Accounts

Al-Wadeeah Current & Other Deposit Accounts includes profit payable account and sundry deposits.
9 General
a) These financial statements are presented in BDT, which is the Bank’s func onal currency. Figures appearing in these financial statements have
been rounded off to the nearest BDT.
b) Assets and liabilities & income and expenses have been converted into Taka currency @ US $1 = Taka 84.80 closing rate as at 31st December
2020.
c) Fixed assets of this unit are appearing in the books of the main operation of the bank and depreciation is also charged to Profit & loss Accounts
of the main operation of the bank.

Annexure-I

HIGHLIGHTS OF PERFORMANCE (ONLY BANK-SOLO BASIS)
(Amount in Taka)
SL
Particulars 31.12.2020 31.12.2019
no.
1 Paid up Capital 9,380,084,230 8,933,413,560
2 Total Capital ( Core + Supplementary) 30,368,899,942 27,901,797,226
3 Capital Surplus/(Deficit) 7,866,838,192 7,653,208,726
4 Capital to Risk-weighted Asset Ratio (CRAR) 13.50% 13.78%
5 Total Assets 384,999,710,859 345,056,231,627
6 Total Deposit 322,383,510,566 287,936,655,109
7 General Investment 300,617,943,566 264,268,589,649
8 Total Contingent Liabilities and Commitments 52,439,934,267 53,594,806,020
9 Investment-Deposit (ID) Ratio ( % ) 90.65% 89.47%
10 Percentage of classified investment against total investments 6.05% 6.63%
11 Profit before Tax and Provision 4,343,211,109 6,342,110,494
12 Profit after Tax and Provision 1,550,935,483 1,521,450,676
13 Amount of classified investment 18,201,163,877 17,533,303,838
14 Provisions kept against classified investment 7,812,088,173 7,595,557,186
15 Provisions surplus - -
16 Cost of Deposits 6.88% 6.56%
17 Profit Earning Assets 329,806,940,393 292,106,296,629
18 Non-Profit Earning Assets 55,192,770,466 52,949,934,997
19 Return on Investment in Securities 4.12% 3.98%
20 Return (after tax) on average Assets (ROA) 0.42% 0.47%
21 Return (after tax) on equity (ROE) 8.78% 9.21%
22 Income from Investment in Securities 762,379,471 760,574,012
23 Earning Per Share (EPS) (Prior year restated) 1.65 1.62
24 Consolidated Earning Per Share (CEPS) (Prior year restated) 1.67 1.63
25 Net Income Per Share 1.65 1.62
26 Price Earning Ratio (Times) 7.86 8.10

INDEPENDENT AUDITOR’S REPORT
TO THE SHAREHOLDERS OF
SIBL SECURITIES LIMITED
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
OPINION
We have audited the financial statements of SIBL SECURITIES LIMITED (the “company”) which comprise the financial
position as at 31 December 2020, and the statement of profit or loss and other comprehensive income, statement of
changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies and other explanatory information.
In our opinion, the accompanying financial statements give true and fair view, in all material respects, of the financial
position of the Company as at 31 December 2020, and of its financial performance and its cash flows for the year then
ended in accordance with International Financial Reporting Standards (IFRSs) and other regulatory requirements.
BASIS FOR OPINION
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those
standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’
Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in
accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE FINANCIAL
STATEMENTS AND INTERNAL CONTROL
Management is responsible for the preparation of the financial statements that give a true and fair view in accordance
with IFRSs as explained in note # 01 , and for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error. The companies
Act, 1994, require the management to ensure effective internal audit, internal control and risk management functions of
the company.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Company or to cease operations or has no realistic alternative but to
do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Group and the Company to cease
to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Company to express an opinion on the financial statements. We are responsible for the direction,
supervision and performance of the Company audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
Report on other Legal and Regulatory Requirements
In accordance with the Companies Act 1994 and the Securities and Exchange Rules 1987, we also report the following:
a. we have obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit and made due verification thereof;
b. in our opinion, proper books of accounts as required by law have been kept by the Company so far as it appeared
from our examination of these books; and
c. the statements of financial position and statement of profit or loss and other comprehensive income dealt with by the
report are in agreement with the books of accounts and returns.
Md. Shafiqul Islam FCA

Enrolment # 595
Partner
SHAFIQ BASAK & CO.
Place, Dhaka Chartered Accountants
May 02, 2021 DVC: 210503059AS893676

STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31, 2020
Amount in Taka
Particulars Note
2020 2019
ASSETS
Non-current assets
Property, plant & equipment less acc. depreciation 3 6,821,945 6,857,137
Right of Use Assets 4 8,658,260 -
Intangible assets 5 492,651 810,015
Investment in Equity of Strategic Company 6 989,770,683 989,770,683
1,005,743,539 997,437,835
Current Assets
Advances, deposits & pre-payments 7 105,109,269 91,417,017
Accounts Receivable 8 1,256,565,280 1,088,706,553
Investment in stock dealer activities 9 142,155,281 154,433,823
Cash & cash equivalents 10 396,700,913 362,409,969
1,900,530,742 1,696,967,362
Total Assets 2,906,274,281 2,694,405,197
EQUITY AND LIABILITIES

Capital & reserve
Share capital 11 1,230,000,000 1,230,000,000
General reserve 12 11,314,057 9,843,355
Retained earnings 13 41,560,062 33,835,172
1,282,874,119 1,273,678,527
Non-current liabilities
HPSM investment loan from SIBL 14 900,000,000 800,000,000
Deferred Tax Liability/(Asset) 15 812,743 887,413
Lease Liability 16 5,070,782 -
905,883,525 800,887,413
Current liabilities
Accounts Payables 17 608,959,440 530,678,554
Provision for tax 18 104,837,111 89,160,703
Lease Liability_Current Portion 16 3,720,086 -
717,516,637 619,839,257
Total Equity & Liabilities 2,906,274,281 2,694,405,197
The annexed notes 1 to 26 form an integral part of these financial statements.
Chief Executive Officer Director Director Chairman

Enrolment # 595
Partner
Place: Dhaka SHAFIQ BASAK & CO.
Chartered Accountants
Dated: May 02, 2021 DVC: 210503059AS893676

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE PERIOD ENDED ON DECEMBER 31, 2020
Amount in Taka
Particulars Note
Dec-2020 Dec-2019
Operating Income:
Brokerage commission 19 65,443,481 60,411,796
Profit earned on bank account: 20 12,426,392 9,975,141
Profit on margin facility 63,048,617 63,026,108
Profit / (Loss) on sale of share 5,580,054 3,206,983
Cash dividend from investment in share 3,367,981 1,708,971
Dividend Income from investment in DSE & CSE Share 3,468,921 7,554,995
Other income 21 1,775,222 1,779,938
Total operating income 155,110,668 147,663,932
Expenses
Operating expenses 22 (50,274,176) (47,745,002)
Financial Expenses 23 (72,785,405) (72,093,691)
(123,059,581) (119,838,693)
Operating profit/(loss) before Provisions & Reserve 32,051,087 27,825,239
Other Provisions & Reserve
Provision for impairment of margin loan 17.2.A 4,193,333 3,090,496
Provision for diminution in value of investment 17.2.B 2,498,746 3,075,197
General Reserve 12 1,470,702 (920,894)
Total Provisions & Reserve (8,162,781) (5,244,799)
Operating profit/(loss) before tax 23,888,306 17,190,608

Current tax 15,676,408 12,311,797
Deferred Tax Expenses / (Income) (74,670) (218,763)
(15,601,738) (12,093,034)
Operating Profit/(loss) after tax 8,286,568 5,097,574

Enrolment # 595
Partner
SHAFIQ BASAK & CO.
Place: Dhaka Chartered Accountants
DVC: 210503059AS893676
Dated: May 02, 2021

Particulars Share capital General reserve Retained earnings Total
Opening balance at 01 January, 2020 1,230,000,000 9,843,355 33,835,172 1,273,678,528
Add: Net Profit/Loss during the period - - 8,286,568 8,286,568
Add: General reserve addition - 1,470,702 - 1,470,702
Add: Adjustment for execution of IFRS 16 (561,678) (561,678)
Less: Interim cash Dividend paid - - - -
Balance as at 31st Decenber, 2020 1,230,000,000 11,314,057 41,560,062 1,282,874,120
Particulars Share capital General reserve Retained earnings Total
Opening balance at 01 January, 2019 1,230,000,000 10,764,249 28,737,598 1,269,501,848
Add: Net Profit/Loss during the year - - 5,097,574 5,097,574
Add: General reserve addition - (920,894) - (920,894)
Less: Interim cash Dividend paid - - - -
Balance as at 31st December, 2019 1,230,000,000 9,843,355 33,835,172 1,273,678,528
The accounting policies and other notes form an integral part of the financial statements.
Place: Dhaka
Dated: May 02, 2021

STATEMENT OF CASH FLOWS
2020 2019
BDT BDT
Cash flows from operating activities:
Net profit before tax 23,888,306 17,190,608
Increase/(decrease) in Advance & Prepayments (13,692,252) (12,641,514)
Increase in receivables (167,858,727) 70,789,579
Increase/(decrease) in payables 57,322,932 93,536,386
Increase/(decrease) in other provisions 20,957,954 81,387,833
Depreciation 1,051,361 1,089,399
Amortization 317,364 317,364
General reserve 1,470,702 (920,894)
Adjustment to retained earnings (429,069) -
Net cash inflow/(outflow) from operating activities (A) (76,971,429) 250,748,761
Cash flows from investing activities:

Investment in membership of stock exchanges - -
decrease/(Increase) in security deposit - -
Increase/(decrease) in fixed assets (1,016,169) (355,529)
Sale of DSE Share - -
Increase in investment 12,278,542 (11,963,895)
Net cash used in investing activities (B) 11,262,373 (12,319,424)
Cash flows from financing activities:

Increase in investment borrowing-SIBL 100,000,000 -
Interim cash dividend paid - -
Net cash from financing activities (C ) 100,000,000 -
Net cash inflow for the year D=(A+B+C) 34,290,944 238,429,337
Opening cash & cash equivalents (E ) 362,409,969 123,980,632
Closing cash & cash equivalents (D+E) 396,700,913 362,409,969
Place: Dhaka
Dated: May 02, 2021

1 SIGNIFICANT ACCOUNTING POLICIES AND OTHER MATERIAL INFORMATION:
1.1 Legal status of the company:

SIBL Securities Limited was incorporated as a public limited company under the Companies Act 1994 vide certification of incorporation no. C -
85876/10 dated 20 July, 2010 and obtained its certificate of commencement of business on the same day. The company has started its operation
both under DSE and CSE membership on 04 January, 2012 and 05 January, 2012 respectively.
1.2 Address of registered office and principal place of business:

The principal place of business is the Registered Office at 15, Dilkusha C/A, Dhaka-1000.
1.3 Nature of business activities:

The principal objectives of the Company for which it was established are to carry on the business of stock brokers, dealers in relation to shares and
securities dealings and other services as mentioned in the Memorandum and Articles of Association of the company.
2 SIGNIFICANT ACCOUNTING POLICIES:
2.1 Basis of preparation of financial statements:

The Financial Statements have been prepared on a going concern basis under historical cost convention in accordance with the International
Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), Companies Act 1994 and other applicable laws and regulations.
2.2 Components of financial statements:

According to International Accounting Standard (IAS)-1 “Presentation of Financial Statements” the complete set of Financial Statements includes
the following components;
i) Statement of Financial Position;
ii) Statement of Profit or Loss and other Comprehensive Income;
iii) Statement of Cash Flows;
iv) Statement of Changes in Equity;
v) Notes, comprising a summary of significant accounting policies and other explanatory notes;
vi) Comparative information.
2.3 Revenue income:

Revenue Income comprises of Brokerage Commission earned and others as stated in accounts.
2.4 Revenue recognition:

Revenues are generated and recognized upon raising invoices against services rendered as broker, commission receipts from clients at the time
when services are completed.
2.5 Fixed assets, depreciation and amortization:

Assets have been shown at cost less depreciation as per IAS-16 “Property, Plant & Equipment”. Depreciation has been charged on reducing balance
method. Depreciation on addition of assets has been charged from the date of purchase. Rate of depreciation are as under:
Particulars Rate (%)

Office Equipment 20
Office Decoration 10
Furniture & fixture 10
The company has implemented International Financial Reporting Standard 16; LEASE for the first time in 2020 and accordingly “Right of Use Asset”
has been created on account of Office Rent.
Intangible assets have been shown at cost less amortization as per IAS-38 “Intangible Asset”.
Amortization has been charged on straight-line method and on addition of assets from the date
of purchase. Amortization period is 10 years.
2.6 Reporting currency:

The figures in the Financial Statements represent Bangladesh Currency (Taka), which have been rounded off to the nearest BDT.
2.7 General:
Previous years figures have been rearranged wherever necessary to confirm to the current years presentation.

Amount in Taka
2020 2019
3 Property, plant & equipment:
Opening balance 18,358,126 18,002,597
Add: Addition during the year (annexure-A) 1,016,169 355,529
Less: Disposal during the year - -
Closing balance (A) 19,374,295 18,358,126
Less: Accumulated depreciation:

Opening balance 11,500,989 10,411,590
Depreciation charged during the year (annexure-A) 1,051,361 1,089,399
Disposal/adjustment during the year - -
Closing balance (B) 12,552,350 11,500,989
Written down value (A-B) 6,821,945 6,857,137
4 Right of Use Assets 13,112,105 -

During the year under report the company has implemented IFRS 16: LEASE therefore “ Right of
Use Assets “ has been arisen due to result of actions of the same IFRS 16
Less: Accumulated Depreciation 4,453,845 -
8,658,260 -
5 Intangible assets:
Add: Addition during the year (annexure-A) - -
Less: Disposal during the year - -
Closing balance (A) 3,173,640 3,173,640
Less: Accumulated depreciation:

Depreciation charged during the year (annexure-A) 317,364 317,364
Disposal/adjustment during the year - -
Closing balance (B) 2,680,989 2,363,625
Written down value (A-B) 492,651 810,015
6 Investment in Equity of Strategic Company

Chittagong Stock Exchange Ltd. (CSE) 307,000,000 307,000,000
Dhaka Stock Exchange Ltd. (DSE) 682,770,683 682,770,683
989,770,683 989,770,683
DSE Share sale to Strategic shareholder - -
989,770,683 989,770,683
The company acquired a Membership of Chittagong Stock Exchange Ltd., Membership no: 142 dated 26 July, 2010 at a cost of Tk. 307,000,000
from Social Islami Bank Limited on 30 December, 2010 which was subscribed by Social Islami Bank Limited earlier in the name of SIBL Securities
Ltd. Further, on 13-04-2011 the company purchased a membership of Dhaka Stock Exchange Ltd. (Membership No. 94) from Arafat Securities Ltd.
at a cost of Tk.710,000,000. A transfer fees of Tk.10,650,000 was also paid to RJSC for the said membership. Later on, after demutualization of
the both Stock Exchanges, the Company obtained TREC Certificates of DSE & CSE against their Membership and received 2,886,042 Shares out
of total allotted 7,215,106 Shares of DSE @Tk.10/- each and also received 1,714,932 Shares of CSE @Tk.10/- each out of total allotted 4,287,330
Shares of CSE. During the year, DSE has sold out 25% shares out of 40% of total share, held with DSE under block account, for which the Company
has received the sale proceeds of Tk. 37,879,317 for 1,803,777 shares at Tk. 21 each against cost price of Tk. 180,162,550 including the TREC value
apparently with loss a of Tk. 142,283,233, But such loss has not been considered in account as the estimated value of the TREC is understood to
be much higher then the overall DSE shares cost.
No of Shares
Stock Exchange
31-Dec-20 31-Dec-19
Dhaka Stock Exchange Limited 5,411,329 5,411,329
Chittagong Stock Exchange Limited 4,287,330 4,287,330
Total number of shares 9,698,659 9,698,659
Book value of Shares 989,770,683 989,770,683

Amount in Taka
2020 2019
7 Advances:
Advance income tax Note - 7.1 104,889,269 89,184,152
Advance office rent - 1,168,865
Advance for floor space at Nikunja, DSE Tower - 850,000
Security deposit Note - 7.2 220,000 214,000
105,109,269 91,417,017
7.1 Advance income tax:

Advance income tax-DSE 80,992,831 70,508,587
Advance income tax-CSE 3,921,587 3,519,809
Advance income tax-CSE dealer 49,023 45,663
Advance income tax-DSE dealer 595,158 573,085
Advance income tax on profit of MTDR A/c. 1,719,174 1,719,174
Advance income tax on profit of other bank A/c. 4,289,113 3,056,574
Advance income tax on cash dividend-dealer 9,267,486 7,683,829
Income tax paid 4,054,897 2,077,431
104,889,269 89,184,152
7.2 Security deposit:

Security deposit with CDBL 200,000 200,000
Security deposit with BTCL 5,000 5,000
Security deposit with Duncan Products 15,000 9,000
Total 220,000 214,000
8 Accounts Receivable
Receivable from client 1,129,885,060 984,335,485
Receivables from regulators Note - 8.1 31,824,621 1,637,167
Receivable dividend income 1,624,281 2,705,665
Profit receivable Bai-Muajjel 93,231,319 100,028,236
1,256,565,280 1,088,706,553
8.1 Receivables from regulators:

Receivable from DSE 769,541 1,637,167
Receivable from CSE 31,055,079 -
31,824,621 1,637,167
9 Investment in stock dealer Activities

Investment in listed securities 107,145,781 124,433,823
Investment in unlisted companies 30,000,000 30,000,000
Investment in primary shares 5,009,500 -
142,155,281 154,433,823
10 Cash & bank balances:

Cash in hand 503,808 79,908
Petty cash account 24,794 5,179
Consolidated customer A/c. with AlBL -0021220003332 8,365 7,768
SIBLSL operational Bank A/c (Exp) with SIBL-02-1330056882 167,124 1,578,112
SIBLSL dealer operational Bank A/c . with OBL-0013000000569 7,190 7,664
SIBLSL -Public Issue ApplicationA/c. with SIBL - 02-1360001846 13,326,239 256,825
SIBL Securities Employees PF Bank A/c. SIBL - 02-1360001993 12,983,106 10,166,705
Siblsl Consolidated Customer A/c. Sibl-0021360003049 349,813,493 347,838,915
Siblsl Dealer Operation A/c.-Sibl-0021360003051 19,866,795 2,468,893
396,700,913 362,409,969

Amount in Taka
2020 2019
11 Share capital:
Authorized capital:
25,000,000 shares of Tk. 100 each 2,500,000,000 2,500,000,000
Issued, subscribed and paid-up capital:

12,300,000 shares of Tk. 100 each 1,230,000,000 1,230,000,000
11.1 Shareholding position:

% of 2020 2019
Shareholders No. Shares
shareholdings Amount Amount
1 Social Islami Bank Limited 99.999902% 12,299,988 1,229,998,800 1,229,998,800
2 Alhaj Nasiruddin 0.000008% 1 100 100
3 Mr. Md. Sayedur Rahman 0.000008% 1 100 100
4 Major (Retd.) Dr. Md. Rezaul Haque 0.000008% 1 100 100
5 Alhaj Sultan Mahmood Chowdhury 0.000008% 1 100 100
6 Mr. Abdul Awal Patwary 0.000008% 1 100 100
Hamdard Laboratories (Waqf) Bangladesh
7 0.000008% 1 100 100
Repres. by: Mr. Anisul Hoque
8 Mrs. Nargis Mannan 0.000008% 1 100 100
9 Mr. Kamaluddin Ahmed 0.000008% 1 100 100
10 Alhaj Sk. Mohammad Rabban Ali 0.000008% 1 100 100
11 Mr. A. Jabbar Mollah 0.000008% 1 100 100
12 Mr. Md. Kamal Uddin 0.000008% 1 100 100
13 Mr. Belal Ahmed 0.000008% 1 100 100
100.000% 12,300,000 1,230,000,000 1,230,000,000
12 General reserve 11,314,057 9,843,355

Opening balance 9,843,355 10,764,249
Add: Addition during the year 1,470,702 -
11,314,057 10,764,249
Less: Adjustment during the year - (920,894)
Closing balance 11,314,057 9,843,355
The Board of SIBL Securities Ltd. has decided to create a general reserve @1% on total receivable from clients at the end of each year and add
or adjustment with general reserve will depend on size of unrealized loss against outstanding margin loan, receivables and realization for the
respective year.
13 Retained Earnings 41,560,062 33,835,172

Opening balance 33,835,172 28,737,598
Add: Profit/(loss) during the year 8,286,568 5,097,574
Add: Adjustment for implementation of IFRS 16 (561,678) -
(International Financial Reporting Standard 16 : Lease ) 41,560,062 33,835,172
Less: Interim dividend - -
Closing balance 41,560,062 33,835,172
14 HPSM investment loan from SIBL:

Opening balance 800,000,000 800,000,000
Addition during the year 100,000,000 -
Adjustment made during the year - -
Closing balance 900,000,000 800,000,000

Amount in Taka
2020 2019
15 Deferred Tax Liability / (Assets)

Opening Balance 887,413 1,106,176
Add: Addition during the year (74,670) (218,763)
812,743 887,413
16 Lease Liability 12,618,123 -

Add: Finance Cost 623,041 -
Less: Adjustment 4,450,296
8,790,868 -
Less: Current Portion 3,720,086 -
5,070,782 -
During the year under report the company has implemented IFRS 16: LEASE and hence lease liability has been arisen due to result of actions of
the same IFRS 16
17 Accounts Payables
Payable to regulators Note - 17.1 9,692,149 6,655,006
Payable to client 359,987,025 305,701,236
Other provisions Note - 17.2 239,280,266 218,322,313
608,959,440 530,678,554
17.1 Payable to regulators:

Payable to DSE 6,307,436 4,353,844
Payable to CSE 14,939 495,895
Payable to CDBL 3,369,774 1,805,267
Total 9,692,149 6,655,006
17.2 Others provisions:

Provision for impairment of margin loan Note 17.2.A 109,865,897 105,672,564
Provision for diminution in value of investment in shares Note 17.2.B 26,779,290 24,280,544
Accrued expenses Note 17.2.C 16,411,024 15,179,147
Payable to service providers 85,328 543,518
Payable to suppliers 15,249 15,050
Profit payable to SIBL on Quard amount 72,049,180 72,000,000
Liabilities for payment to the issuer 13,107,400 -
Liabilities for unidentified cash dividend receipt 12,824 12,824
Liabilities for EMP. PF Bank A/c. profit income 954,074 618,665
Total 239,280,266 218,322,312
17.2.A Provision for Impairment of Margin loan

Opening Balance 105,672,564 102,582,068
Add: Addition / (Adjustment) during the year 4,193,333 3,090,496
Closing Balance 109,865,897 105,672,564
17.2.B Provision for diminution in value of investment in shares

Opening Balance 24,280,544 21,205,347
Add: Addition / (Adjustment) during the year 2,498,746 3,075,197
Closing Balance 26,779,290 24,280,544
In compliance with the guidelines of the BSEC vide Circular No. SEC/CMRRCD/2009-193/196 dated 28 December, 2016 and BSEC’s Directive
No. BSEC/CMRCCD/2009-193/203 dated December 28, 2017 and further letter No. BSEC/SRI/Policy/3/2018/931 dated December 24, 2018 the
management of the Company has decided to create provisions @100% for impairment of margin loan on negative equity balance and @ 100%
for diminution in value of investment in shares through dealer account separately within next 02 (two) years. That is, end of the year 2020. In this
connection, as on 30th September, 2019 the provisions have been created @ 31% on Impairment of Margin Loan on negative equity balance of 31st
December, 2018 and @32.5% Diminution in value of investment on unrealized loss amount of 30th September, 2019 separately.

Amount in Taka
2020 2019
17.2.C Accrued expenses:
Audit fees 60,000 30,000
Provision for office rent 241,504 1,207,520
Provision for PF contribution by company 5,930,623 4,693,625
Provision for PF contribution by employee 5,930,623 4,693,625
Provision for employees Gratuity Fund 4,068,550 4,068,550
Adjustment A/c. to forfeit PF contribution by Company - 179,326
Payable to DSE for non trading activities 31,720 31,720
VAT payable on Directors meeting attendance fees - 8,000
VAT payable on suppliers 3,832 16,663
VAT payable on office rent 93,215 205,608
Tax payable on office rent 19,096 8,259
Tax payable on suppliers 160 700
Tax payable on salary 22,700 31,050
VAT payable on legal & professional fees 9,000 4,500
Total 16,411,024 15,179,147
18 Provision for tax:

Opening balance 89,160,703 76,848,906
Add: Current year tax 15,676,408 12,311,797
Short / (excess) Provision of preceding years Tax - -
15,676,408 12,311,797
Less: Tax Paid / Adjust of preceding years Tax - -
15,676,408 12,311,797
Closing balance 104,837,111 89,160,703
19 Brokerage commission:
Brokerage commission-DSE 62,963,730 58,981,317
Brokerage commission-CSE 2,479,751 1,430,479
Total 65,443,481 60,411,796
20 Profit earned on bank account:

Profit on A/c.0021220003332 (Al Arafah) 663 1,321
Profit on A/c. 13000000569 (One Bank) 240 292
Profit on CCA A/c. 0021360003049 (SIBL) 12,254,276 9,246,868
Profit on Dealer A/c. 0021360003051 (SIBL) 154,219 202,983
Profit on A/c. 0021360001846 (SIBL) 16,994 523,677
Total 12,426,392 9,975,141
21 Other income:
Loan processing fees 6,500 1,000
B.O. opening charges 516,000 98,000
B.O. maintenance charges 394,950 438,450
Income from IPO application process 50,670 71,990
Other income 807,102 1,170,498
Total 1,775,222 1,779,938

Amount in Taka
2020 2019
22 Operating expenses:
Salary & allowances (Note 22.1) 30,699,093 31,018,682
License, fees & renewals (Note 22.2) 8,752,272 7,570,217
Directors Board meeting attendance fees (Note 22.3) 536,000 419,500
Rent, rates & taxes (Note 22.4) 764,106 808,475
Communications expenses (Note 22.5) 974,494 2,026,095
Printing & stationery (Note 22.6) 301,991 477,675
Entertainment & public relation 782,891 833,903
Repair & maintenances (Note 22.7) 703,590 810,805
Office expenses (Note 22.8) 664,669 788,024
Legal & professional fees (Note 22.9) 69,500 39,500
Business promotional expenses 200,000 1,291,493
Branding and business development exp. - 163,370
Training Expenses 3,000 90,500
Depreciation 1,051,361 1,089,399
Depreciation: Office rent transferred for IFRS 16 execution 4,453,845 -
Amortization 317,364 317,364
Total 50,274,176 47,745,002
22.1 Salary & allowances:

Salary & allowances 27,309,451 27,581,910
Contribution to employees provident fund by Company 1,057,672 1,212,607
Festival bonus 2,331,970 2,224,165
Total 30,699,093 31,018,682
22.2 License, fees & renewal:

Stock broker license renewal fees 20,000 20,000
Stock dealer license renewal fees 20,000 20,000
Renewal fees 4,000 4,000
TREC license renewal fees-DSE 50,000 50,000
TREC license renewal fees-CSE 50,000 50,000
Membership subscription to DBA 12,500 12,500
Bidding fee paid to DSE 29,000 15,000
Regulatory expenses with RJSC 14,605 -
Non-Judicial stamp 5,425 4,360
Trade license fees & expenses 13,250 13,200
VAT on Registration & Renewal fees 8,580 7,980
Tax on Registration & Renewal fees 3,000 3,000
TWS shifting fees to DSE 4,500
Authorized representative license and renewal fees 171,000 200,000
CDBL connection Fees 5,500 5,500
CDBL settlement transfer fees 2,636,585 2,201,299
Howla charges-DSE 150 900
Laga charges-DSE 5,222,748 4,850,572
Laga charges-CSE 468,436 102,179
Laga charges-CSE dealer 1,546 475
Laga charges-DSE dealer 11,036 8,686
Investor protection fund-CSE & DLR 411 566
Total 8,752,272 7,570,217

Amount in Taka
2020 2019
22.3 Directors Board Meeting attendance fees:
Directors Board meeting attendance fees 320,000 330,000
VAT on Directors meeting attendance fees 44,000 41,500
Tax on Directors meeting attendance fees 172,000 48,000
Total 536,000 419,500
22.4 Rent, rates & taxes:

Office rent 3,260,304 3,619,832
Office rent- Extension of HO 1,833,720 1,770,000
5,094,024 5,389,832
Less: Adjsutment due to execution of IFRS 16 for the first time 5,094,024 5,389,832
- -
VAT on office rent 764,106 808,475
Total 764,106 808,475
22.5 Communications expenses:

Telephone & mobile bill 174,408 150,181
Internet expenses 195,476 366,758
Courier & postage 6,460 4,270
Conveyance & travel expenses 70,383 352,613
Network connectivity & installation charges 527,767 1,152,273
SMS bill - -
Total 974,494 2,026,095
22.6 Printing & stationery:

Printing 83,424 154,523
Tax on printing exp. 160 20,217
stationery 158,670 241,754
VAT on stationery 787 -
Toner/cartridge 58,950 61,181
Total 301,991 477,675
22.7 Repair & maintenances:

Repair & maintenances 63,472 170,136
VAT on Repair & maintenances 235 650
Computer maintenances 17,607 85,123
Software maintenances 262,500 306,700
VAT on software maintenance - 12,500
Office maintenances 359,776 235,696
Total 703,590 810,805

Amount in Taka
2020 2019
22.8 Office expenses:
Office inauguration exp. 8,085 -
VAT on suppliers bill 7,208 600
Advertisement 20,700 40,250
Water & Sewerage bill 54,269 53,153
Newspaper & periodicals 11,740 22,005
Electrical goods - 72,975
Misc. Expenses 40,000 45,000
Plant Bill - 20,000
Cleaner bill 20,400 -
VAT on supplier payment - 10,882
Ex-gratia 27,500 7,000
Electricity & generator bill 474,767 516,159
Total 664,669 788,024
22.9 Legal & professional fees:

Advisory & Consultancy 35,000 5,000
Audit Fees 30,000 30,000
VAT on Audit Fees 4,500 4,500
Total 69,500 39,500
23 Financial expenses:
Profit paid on loan 72,049,180 72,000,000
Bank charges 113,184 93,691
Finance cost arises from execution of IFRS 16 623,041 -
Total 72,785,405 72,093,691
24 Off-Balance Sheet Assets and Liabilities

In compliance with the TREC Holder’s Margin Regulations, 2013 to enhance the buy limit of the Company upto 40.00 Crore the company submitted
two Bank Guarantee for the amount of Tk.30.00 Crore (BG No.002BG000117 dated 04.01.2017 for Tk.20.00 cr. and BG No. 002BG000316 dated
31.03.2016 for Tk.10.00 cr.) valid upto 31st December, 2020 to Dhaka Stock Exchange Ltd. which issued by Social Islami Bank Ltd., Principal
Branch, Dhaka.
25 Post balance sheet event:

The company has started its operation both under DSE and CSE membership on 04 January 2012 and 05 January 2012 respectively. No material
event had occurred after the Balance Sheet date, which could substantially effect the values reported in the Financial Statements.
26 Related party disclosure:

As per IAS 24 there is no related party transaction other than those with SIBL as mentioned in note no.13.

FIXED ASSETS SCHEDULE
FOR THE YEAR ENDED DECEMBER 31, 2020
ANNEXURE - A
Cost Accumulated Depreciation Written Down
Disposal/ Disposal/
Particulars Balance Addition Balance Rate Opening balance Charged Balance
adjustment adjustment Value as on
as on during the as on of Dep. as on during the as on
during the during the 31-12-2020
01-01-2020 period 31-12-2020 (%) 01-01-2020 period 31-12-2020
period period
1 5 = 2+3-4 3 4 5 = 2+3-4 6 7 8 9 10 =7+8+9 11 = 5-10
Property, plant & equipment
Office equipment 11,215,381 814,892 - 12,030,273 20 8,566,924 622,585 - 9,189,509 2,840,764
Office decoration 5,582,557 119,877 - 5,702,434 10 2,438,508 316,503 - 2,755,010 2,947,424
Furniture & fixture 1,560,188 81,400 - 1,641,588 10 495,557 112,273 - 607,831 1,033,757
Total 18,358,126 1,016,169 - 19,374,295 11,500,989 1,051,361 - 12,552,350 6,821,945
Right of use assets 13,112,105 - - 13,112,105 4,453,845 4,453,845 8,658,260
Intangible assets
Software 3,173,640 - - 3,173,640 10 2,363,625 317,364 - 2,680,989 492,651
Total 3,173,640 - - 3,173,640 2,363,625 317,364 - 2,680,989 492,651

INDEPENDENT AUDITORS’ REPORT
TO THE SHAREHOLDERS OF SIBL INVESTMENT LIMITED
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

OPINION
We have audited the financial statements of SIBL Investment Limited (the “company”) which comprise the financial position as at 31 December
2020, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for
the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory
information.
In our opinion, the accompanying financial statements give true and fair view, in all material respects, of the financial position of the Company
as at 31 December 2020, and of its financial performance and its cash flows for the year then ended in accordance with International Financial
Reporting Standards (IFRSs) and other regulatory requirements.
BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company
in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and
we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE

FINANCIAL STATEMENTS AND INTERNAL CONTROL
Management is responsible for the preparation of the financial statements that give a true and fair view in accordance with IFRSs as explained
in note # 01 , and for such internal control as management determines is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error. The companies Act, 1994, require the management to ensure effective internal
audit, internal control and risk management functions of the company.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either
intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made

by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group
and the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the
Company audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

In accordance with the Companies Act 1994 and the Securities and Exchange Rules 1987, we also report the following:
a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes
of our audit and made due verification thereof;
b. in our opinion, proper books of accounts as required by law have been kept by the Company so far as it appeared from our examination
of these books; and
c. the statements of financial position and statement of profit or loss and other comprehensive income dealt with by the report are in
agreement with the books of accounts and returns.

Enrolment # 595
Partner
SHAFIQ BASAK & CO.

Place, Dhaka Chartered Accountants
May 02, 2021 DVC: 210305059AS754171

SIBL INVESTMENT LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31, 2020
Taka Taka
Particulars Note
2020 2019
ASSETS
Non-current assets - -
- -
Current assets
Advance Deposit & Prepayments 1 703,000 212,409
Investment in Shares 2 108,211,330 69,296,400
Accounts receivable 3 45,140,081 81,399,135
Cash & cash equivalents 4 104,928,453 101,456,590
258,982,863 252,364,533
TOTAL ASSETS 258,982,863 252,364,533
EQUITY AND LIABILITIES

Capital & reserve
Share capital 5 250,000,000 250,000,000
Retained earnings 5,168,260 (2,880,818)
255,168,260 247,119,182
Current liabilities
Payable to Social Islami Bank Limited 1,903,690 1,883,690
Accrued expenses 6 69,000 46,000
Provision for diminution in value of investment 7 - 2,660,502
Provision for tax 8 1,841,913 655,159
3,814,603 5,245,351
Total equity & liabilities 258,982,863 252,364,533
Director Director Director
Signed as per our report of even date.
Place, Dhaka Md. Shafiqul Islam FCA

Enrolment # 595
May 02, 2021 Partner
SHAFIQ BASAK & CO.
DVC: 210305059AS754171
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED DECEMBER 31, 2020
Taka Taka
Particulars Notes
2020 2019
Operating Income
Brokerage commission less howla & laga charges - -
Profit received from Bank 3,094,059 1,610,000
Profit / (Loss) on Investment in share 1,783,052 696,535
Dividend income 1,779,249 257,045
Other income - -
6,656,361 2,563,580
Less: Expenses 9 23,500 64,580
Less: Financial expenses 10 57,530 52,235
81,030 116,815
Profit/(loss) before provision & reseve 6,575,331 2,446,765
Provision for diminution in value of investment 2,660,502 (2,660,502)

Profit/(loss) before tax 9,235,833 (213,737)
Provision for taxation:
Provision for tax 1,186,754 655,159
Deferred tax - -
(1,186,754) 655,159
Profit/(Loss) after tax 8,049,079 (868,896)

Enrolment # 595
SHAFIQ BASAK & CO.
DVC: 210305059AS754171

Particulars Share capital Retained earnings Total
Opening Balance at 01 January, 2020 250,000,000 (2,880,818) 247,119,182
Add: Net profit/(loss) during the year - 8,049,079 8,049,079
Balance as at 31 December, 2020 250,000,000 5,168,260 255,168,260
Particulars Share capital Retained earnings Total
Opening Balance at 01 January, 2019 250,000,000 (2,011,922) 247,988,078
Add: Net profit/(loss) during the year - (868,896) (868,896)
Balance as at 31 December, 2019 250,000,000 (2,880,818) 247,119,182

Enrolment # 595
SHAFIQ BASAK & CO.
DVC: 210305059AS754171

STATEMENT OF CASH FLOWS
Taka Taka
2020 2019
Cash flows from operating activities:
Net profit/(loss) before tax 6,575,331 2,446,765
Net cash inflow/(outflow) from operating activities (A) 6,575,331 2,446,765
Cash flows from investing activities:

Increase in current assets (490,591) (212,409)
Increase in investment (38,914,930) (69,296,400)
Increase in receivables 36,259,054 (81,399,134)
Increase in payables 23,000 -
Increse in liabilities - -
Net cash used in investing activities (B) (3,123,467) (150,907,943)
Cash flows from financing activities:

Received from Social Islami Bank Ltd. 20,000 63,630
Paid Investment account charges - -
Net cash from financing activities (C ) 20,000 63,630
Net cash inflow for the year D=(A+B+C) 3,471,863 (148,397,548)
Opening cash & cash equivalents (E) 101,456,590 249,854,138
Closing cash & cash equivalents (D+E) 104,928,453 101,456,590
Chief Executive Officer Director Director

Place, Dhaka
May 02, 2021

1 SIGNIFICANT ACCOUNTING POLICIES AND OTHER MATERIAL INFORMATION:
1.1 Legal status of the company:

SIBL Investment Limited was incorporated as a public limited company under the Companies Act, 1994 vide certification of incorporation no.
C-86726/10 dated 30 August, 2010 and obtained its certificate of commencement of business on the same day.
Though SlBL Investment Limited was established in 2010 to carry out Merchant Banking activities, the company is yet to received approval from
the Bangladesh Securities & Exchange Commission (BSEC). In absence of the License, the primary activities could not be initiated. Management
has completed the necessary formalitites and have submitted its application to BSEC which is still under process. Once the approval is received,
the Company will commence its full commercial operation.
1.2 Address of registered office and principal place of business:

The principal place of business is the Registered Office at (7th Floor), 68 Dilkusha C/A, Dhaka-1000.
1.3 Nature of business activities:

The principal objectives of the Company for which it was established are to carry on the business of stock brokers, dealers in relation to shares
and securities dealings, to underwrite, manage and distribute the issue of stocks etc. and other services as mentioned in the Memorandum and
Articles of Association of the Company.
1.4 Basis of preparation
1.4.1 Components of the financial statements

The financial statements comprise of :
a) Statement of Financial Position as at 31 December 2020;
b) Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020;
c) Statement of Changes in Equity for the year ended 31 December 2020;
d) Statement of Cash Flows for the year ended 31 December 2020; and
e) Notes to the Financial Statements.
1.4.2 Basis of preparation of financial statements:

The Financial Statements have been prepared on a going concern basis under historical cost convention in accordance with the International
Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), Companies Act 1994 and other applicable laws and regulations.
1.4.3 Basis of accounting and measurement

The financial statements have been prepared on a going concern basis following accrual basis of accounting except for cash flow statement and
financial instruments at fair value through profit or loss.
1.4.4 Accounting Records/Books of Account:

The entity has been maintaining all the required books of accounts as are necessary for the accounts.
1.4.5 Authorization of the financial statement for issue

The financial statements of the company has been authorised for issue by the board of directors on……………….
1.4.6 Legal Compliance:

The financial statements have been prepared and the disclosures of information were made in accordance with the requirements of the Companies
Act,1994 and IASs adopted by the ICAB. On the basis of these regulations , International Accounting Statements (IAS) & International Financial
Reporting Standard (IFRS) were applied with the applicable standards at the Statement of Financial Position date.
1.4.7 Materiality and aggregation

Each material item as considered significant by management, has been presented separately in financial statements. No amount has been set off
unless the Company has a legal right to set off the amounts and intends to settle on net basis. Income and expenses are presented on a net basis
only when permitted by the relevant accounting standards.
1.4.8 Consistency
In accordance with the IFRS framework for the presentation of financial statements together with IAS 1 and IAS 8, SIBL Investments Limited applies
the accounting disclosure principles consistently from one period to the next. In case of selecting and applying new accounting policies, changes
in accounting policies applied and correction of errors, the amounts involved are accounted for and disclosed retrospectively in accordance with
the requirement of IAS-8.
1.4.9 Reporting period

The financial period of the Company has been determined to be from 1 January to 31 December each period. These financial statements cover the
period from 01 January 2020 to 31 December 2020.
1.4.10 Events after the Reporting Period

Where necessary, all the material events after the reporting period is considered and appropriate adjustments /disclosures is made in the financial
statements in accordance with IAS 10 - Events After Balance Sheet Date.
1.4.11 Comparative figures

Comparative information has been disclosed in respect of the period ended 31 December, 2020 for all numerical data in the financial statements
and also the narrative and descriptive information when it is relevant for better understanding of the current year’s financial statements. Figures of
the year 2019 have been rearranged whenever considered necessary to ensure comparability with the current period.
1.4.12 Directors’ responsibility statement

The Board of Directors takes the responsibility for the preparation and presentation of these financial statements.
1.4.13 Critical Accounting Estimates, Assumptions and Judgments:

The preparation of the financial statements are in conformity with IFRS requires the use of certain critical accounting estimates. It also requires
management to exercise its judgment in the process of appling the Company’s accounting policies.
1.4.14 Going Concern:

The Company has adequate resources to continue in operation for the foreseeable future. For this reasons the directors continue to adopt going
concern basis in preparing the financial statements. The current credit facilities and resources of the Company provides sufficient fund to meet
the present requirements of existing business.
1.4.15 Cash & Cash Equivalents:

Cash and cash equivalents include cash in hand, cash at bank, term deposits which are available for use by the Company without any restrictions.
There is an insignificant risk of change in value of the same.
1.4.16 Cash Flow Statement:

Statement of Cash Flow is prepared principally in accordance with IAS-7: Cash Flow Statements and the cash flows from operating activities have
been presented under direct method.
1.4.17 Use of estimates and judgments

The preparation of the financial statements in conformity with IFRS requires management to use judgments, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from
these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which
the estimate is revised.
1.4.18 Functional and presentation currency and level of precision

The financial statements are presented in Bangladesh currency Taka (Taka/Tk), that is the Company’s functional currency. All financial information
presented in Taka has been rounded to the nearest Taka.

Taka Taka
2020 2019
1 Advance Deposit & Prepayments
Advance income tax on cash dividend 232,594 51,409
Advance income tax on profit of Bank A/c. 470,406 161,000
703,000 212,409
2 Investment in shares
Disclosure about the investment
Unrealized gain /
Particulars Cost Value Market Value
(Loss)
Investment in listed securities 108,211,330 108,773,214 561,884
Investment in unlisted companies - - -
Investment in primary shares - - -
Total 108,211,330 108,773,214 561,884
3 Accounts receivable
Balance with SIBL Securities Ltd. Note-3.1 44,266,757 81,399,135
Receivable dividend income Note-3.2 873,323 -
Total 45,140,081 81,399,135
SIBL Investment Ltd. has been maintaining a BO Account No. 1205200068012743 which trading code # 4286 and investment in capital market
through the account with SIBL Securities Ltd.
3.1 Balance transfer to BO Account with SIBL Securities Ltd. 150,695,535 150,000,000
Add: Income from investment in shares 1,783,052 696,535
Total investment 152,478,587 150,696,535
Investment in listed securities (108,211,330) (69,296,400)
B.O. Opening Charge - (500)
B.O. maintenance Charge (500) (500)
(108,211,830) (69,297,400)
Balance with SIBL Securities Ltd. 44,266,757 81,399,135
3.2 Receivable dividend income

Opening balance - -
Add: Receivable during the year 873,323 -
873,323 -
Less: Received/ adjusted during the year - -
873,323.40 -
4 Cash & cash equivalents:

Cash in hand 25,201 5,201
Cash at bank-A/c. 002-1330057058 10,736,669 10,028,309
Cash at bank-A/c. 002-1360003826 94,166,583 91,423,080
104,928,453 101,456,590
SIBL Investment Limited has been maintaining 02 bank account no. 0002-1330057058 and account no. 0021360003826 with Social Islami Bank
Limited, Principal Branch, Dilkusha, Dhaka.

Taka Taka
2020 2019
5 Share capital:
Authorized capital:
25,000,000 shares of Tk. 100 each 2,500,000,000 2,500,000,000
Issued, subscribed & paid-up capital:

2,500,000 shares of Tk. 100 each 250,000,000 250,000,000
5.1 Shareholding position:

Shareholders % of shareholdings No. Shares No. Shares
1 Social Islami Bank Limited 99.9997% 2,499,992 2,499,992
2 Mr. Md. Kamal Uddin 0.00004% 1 1
3 Mr. Belal Ahmed 0.00004% 1 1
4 Alhaj Nasiruddin 0.00004% 1 1
5 Major (Retd.) Dr. Md. Rezaul Haque 0.00004% 1 1
6 Alhaj Sultan Mahmood Chowdhury 0.00004% 1 1
7 Mr. Abdul Awal Patwary 0.00004% 1 1
8 Mr. Kamaluddin Ahmed 0.00004% 1 1
9 Alhaj Sk. Mohammad Rabban Ali 0.00004% 1 1
100.00% 2,500,000 2,500,000
6 Accrued expenses:
Audit fees 69,000 46,000
VAT on directors Meeting Attendance fees - -
69,000 46,000
7 Provision for dimunition in value of investment

Opening Balance 2,660,502 -
Add: Addition / (Adjustment) during the year (2,660,502) 2,660,502
Closing Balance - 2,660,502
8 Provision for tax

Opening balance 655,159 -
Less: Paid during the year - -
655,159 -
Add: Current year tax provision 1,186,754 655,159
Closing balance 1,841,913 655,159
9 Expenses
Registration & renewals (Note 9.1) - 40,580
Entertainment - -
Conveyance & other expenses - -
BO Account opening fee - 500
BO maintenance fee 500 500
Audit fees 20,000 20,000
VAT on Audit fees 3,000 3,000
23,500 64,580

Taka Taka
2020 2019
9.1 Registration & renewals:
RJSC fees - -
Trade license fees & Exp. - 25,610
VAT on license fees - 3,840
Tax on license fees - 3,500
Expenses for licenses formalities - 7,630
- 40,580
10 Financial expenses
Bank Charges 2,530 2,235
Excise duty 55,000 50,000
57,530 52,235
11 Post balance sheet event:

No material event had occurred after the Balance Sheet date, which could substantially effect the values reported in the Financial Statements.

DHAKA DIVISION
1 Principal Branch (Opening Date- 22-11-1995) 12 Uttara Branch (Opening Date-07-12-2003)

15, Dilkusha C/A, Dhaka-1000. Latif Emporium, 27 Uttara C/A, Road -7, Sector-3, Uttara, Dhaka.
Phone-02-9550195,9559241, 9572303, 9564764 Phone-02-8959731, 8959732, 8959733
fax-9562002, IP Phone-70201, 70202. IP Phone-72401, 72402.
2 Gulshan Branch (Opening Date-22-04-1998) 13 Fatulla Branch (Opening Date-23-12-2003)
80, Gulshan Avenue, Gulshan-1, Dhaka. Fatulla Bazar,Fatulla, Narayangonj.
Phone-02-8829137, 8813793, fax: 02-9888857 Phone-02-7602144, 7670393,
IP Phone-70801, 70802 fax-02-7672144, IP Phone-72501 ,72502.
3 Babu Bazar Branch (Opening Date-26-04-1998) 14 Mirpur Branch (Opening Date-29-12-2003)
31, Nawab Yousuf Road,Naya Bazar, Dhaka. Rabeya Complex, Plot No-33, Block-Kha,
Phone-02-57395118, 57395119, Main Road ,(Goal Chakkar-10), Mirpur, Dhaka-1216.
fax: 02-7395119,IP Phone-70901, 70902. Phone- 02-8055323,9013584, fax-02-9013584
IP Phone-72601,72602
4 Moulvibazar Branch 15 Banani Branch (Opening Date-16-10-2008)
(Opening Date-30-09-1998 & Shifted at present place on Date: 03/09/2018) 48 Kamal Attaturk Avenue, (Ground & 1st Floor)
Moulvibazar Trade Center Banani, Dhaka-1213.
Holding No.78, Moulvibazar Road , Chawkbazar, Dist- Dhaka. Phone-02-89820996,9820997, 9820998,
Phone-02-7316225, 7315323, 7312911, Fax: 7312911, fax-02-9820995
IP Phone-71001, 71002 IP Phone-72701, 72702.
5 Begum Rokeya Sarani Branch 16 Savar Branch (Opening Date-27-11-2008)
(Opening Date-23-09-1999) Yousuf Tower (2nd Floor), 35 Tatti, Dilkusha Bagh, Savar Bus
Bangladesh Lions Foundation Bhaban, Stand, Savar, Dhaka.
3/C, West Agargaon, Begum Rokeya Sarani, Dhaka. Phone-02-7743707, 7745585
Phone-02-8115789, 8141671, fax-02-8115789 IP Phone-73001, 73002.
IP Phone-71301,71302,71303
6 Panthapath Branch (Opening Date-07-12-2000) 17 Mohammadpur Branch
Level-2, Block-A, Bashundhara City (Opening Date-18-05-2009)
13/Ka/1, Panthapath, Dhaka. 20/15, Block-C, Tajmohol Road,
Phone-02-9136819,9135229, Mohammadpur, Dhaka-1207. fax-02-9132253
fax-02-9135229, IP Phone-71501,71502 Phone-02-8142572,02-9132398, IP Phone73101,73102
7 Sonargaon Branch (Opening Date-09-06-2001) 18 Dania Rasulpur Branch
Haji Jalal Tower (1st floor), Mogra Para (Opening Date-28-05-2009)
Sonargaon, Narayangonj. 308, Dania Rasulpur (1st floor), Jatrabari, Dhaka.
IP Phone-71701,71702 Phone-02-7541659, 7541650
IP Phone-73201,73202
8 Foreign Exchange Branch 19 Gopaldi Branch (Opening Date-11-08-2009)
(Opening Date-04-02-2002) Gopaldi Bazar, P.S- Araihazar, District-Narayangonj
141-143, Motijheel C/A, BIWTA Bhaban, Dhaka. Phone-02-7651016,7651017
Phone-02-9571254, 9571100, fax: 02-9571100, IP Phone-73601, 73602.
IP Phone-71801, 71802
9 Hasnabad Branch (Opening Date-17-04-2002) 20 Rampura Branch (Opening Date-24.11.2009)
Hasnabad Super Market Modina Tower (Opposite TV Centre)
Suvadda, South Keranigonj, PO: Dhaka Jute Mill.1311 Dhaka. 464/1, West Rampura, DIT Road, Thana- Rampura, Dhaka
Phone-02-7761723, fax-02-7761723, IP Phone-72001, 72002, .Phone-02-55128353,55128640
IP Phone-74101 ,74102,
10 Dhanmondi Branch (Opening Date- 14-05-2002) 21 Keranigonj Branch (Opening Date-13.12.2009)
House # 84, (Old-176), Road # 7/A (Old-14) Masjid Madrasa Complex, Shuvadda
Satmasjid Road, Dhanmondi R/A, Dhaka. PS- Keranigonj, Keranigonj, Dhaka
Phone-02-9144682, fax: 02-9120088 Phone-02-7763253, 7763765
IP Phone-72101, 72102 IP Phone-74401 ,74402
11 Nawabpur Road Branch (Opening Date-26-07-03) 22 Madhabdi SME/Krishi Branch (Opening Date-15-07-2010)
82, Nawabpur Road (1st Floor) Madhabdi Plaza,
Nawabpur Road, Dhaka. fax: 02-9591193, Madhabdi, Narsingdi, Narsingdi.
Phone-02-9591192,02-9576948, 9576949, 9576950 Phone-9446883, 9446882, fax-9446884
IP Phone-72201, 72202. IP Phone-74501,74502

23 Islampur Branch (Opening Date-26-08-2010) 33 Basundhara Branch (Opening date-27.12.2011)
Lions Tower(2nd floor) House # 16, Block-A,
108, Islampur Road, Dhaka. Basundhara Avenue. Basundhara R/A,
Phone-7392332, 7393208, fax-7393208 Dhaka-1229.
IP Phone-75401 ,75402 Phone-8432501,8432502
IP Phone-77701 ,77702
24 New Eskaton Branch (Opening Date-31-08-2010) 34 Demra Branch (Opening date-07.10.2012)
27, New Eskaton Road Haji Hossain Plaza,Staff Quarter
P.S & P.O- Ramna, Dhaka-1000. P.O & P.S.-Demra
Phone-9359620, 8311592, fax-8311591 Dhaka. Phone-7502915, 7502916
IP Phone-75501,75502 IP Phone-78101,78102
25 Bhulta SME/Agri Branch (Opening Date-05-09-2010) 35 Satarkul Road Branch (Opening date-16.10.2012)
Salam Mansion Market (1st Floor) 287, North Badda (Alir Moor)
P.O- Bhulta, P.S- Rupgonj, Satarkul Road, Badda Union, Dhaka.
Dist.- Narayangonj. Phone-9858072, 9858073
IP Phone-75601, 75602 IP Phone-78401,78402
26 Galimpur SME/Krishi Branch 36 Garib-E-Newaz Avenue Branch
(opening Date-10-10-2010) (Opening date-26.11.2012)
Khan Super Market (1st Floor) Rosewood Areebah
Galimpur Bazar, Nababgonj, Dhaka. 50, Garib-E-Newaz Avenue Road
IP Phone-75901 ,75902 Sector-13, Uttara, Dhaka 1230.
Phone-8955884, 8955886, IP Phone-78601,78602
27 Dhamrai SME/Krishi Branch 37 Kawran Bazar Branch
(opening Date-09-11-2010) (Opening date-27.11.2012)
Dhamrai Bazar, Gopnagar, Holding No-A/6, Ward-03, Khan Sons Centre
Paurasova- Dhamrai, P.S & P.O- Dhamrai, 37, Kawran Bazar, Dhaka,
Dist. - Dhaka. Phone- 8180206, 8180207
Phone-02-7730908, 7730909 IP Phone-78701,78702
IP Phone-76101 ,76102
28 Narayangonj Branch (opening Date-27-12-2010) 38 Mouchak Branch (Opening date-18-06-2013)
3 ,No. S. M. Maleh Road (Rupsi Height) Advanced Melinda Tower (1st Floor)
Tanbazar, PO-Narayangonj, PS- Narayangonj Sadar 72, Malibagh (opposite Fortune Shopping Mall)
Dist.- Narayangonj. Mouchak Moor, Dhaka-1217
Phone-7641621-7641623 Phone- 9858072, 9858073, IP Phone-79101, 79102.
IP Phone-76601,76602
29 Mohakhali Branch (Opening date-20.09.2011) 39 Gausia Branch (Opening date-12.11.2014)
99, Mohakhali C/A, 16 (sixteen) storied building Yeakub Super Market
Dhaka. 2-B, Elephant Road, New Market, Dhaka-1205
Phone: 9888943 ,9888367 IP Phone-79801,79802
IP Phone-77001 ,77002
30 Tongi Branch (Opening date-03.10.2011) 40 Panchdona Branch (Opening date-30.09.2014)
Rabeya Sarker Tower, (1st floor North Side) Isfar Tower, Panchdona,
24, Anarkoli Road, Tongi, Gazipur. Narsingdi Sadar, Narsingdi
Phone-9817710, 9817711 IP Phone-79701,79702
IP Phone-77401,77402
31 Bangshal Branch (Opening date-21.09.2011) 41 Mawna Branch (Opening date-24.12.2014)
Bangshal Road Razzak Plaza, Mawna Chowrasta,
70, Shahid Syed Nazrul Islam Sarani (1st floor) P.O.-Maona, P.S-Sreepur, Gazipur
North South Road, Bangshal, Dhaka 1100. IP Phone-79901,79902
Phone-57317175, 57317396
IP Phone-77101,77102
32 Banasree Branch (Opening date-22.09.2011) 42 Kishoregonj Branch (Opening Date- 10-06-2015)
Plot No-2, Road-13, Block-L, South Bonosree, Social Islami Bank Ltd.
Eastern Housing Ltd., Khilgaon, Dhaka. 661, Mohammadi Mansion,
Phone:7811611,7811612,7811613 Shahabuddin Mosjid Road,Borobazar
IP Phone-77201 ,77202 P.O & P.S- Kishoregonj.Kishoregonj.IP Phone-80701, 80702.

43 Kakrail Branch (Opening Date-02.06.2015) 54 Muksudpur Branch (Opening Date: 21/06/2017)
89/3, kakrail, Ishakha Shopping Complex, “Khan Market”
PS-Ramna, Dhaka-1000. Fultala Bazar, Vill+PO- Muksudpur
IP Phone-80301, 80302. PS- Dohar, Dist.- Dhaka
Mob: 01918790029 IP: 83601, 83602
44 Ashulia Branch (Opening Date 11-06-2015) 55 Shyamoli Branch (Opening Date: 21/06/2017)
Habib Plaza (1st Floor) “Bridge Momtaj Heights”
Plot no-82, 99, Bashundhara, Bogabari Bazar, Baipail, Ashulia Holding no.15/2, Shyamoli, Mirpur Road
Road, Savar, Dhaka. Mohammadpur, Dhaka 1207. IP: 83701, 83702
IP Phone-80801, 80802.
45 Shariatpur Branch 56 Dakkhin Khan Branch (Opening Date: 26/12/2017)
[Opening Date -14/ 06/2015]) (Shifting Date- 29/01/2017 “Mozaffar Tower”, 595, Prembagan, Dakkhinkhan Model
KB Plaza, Holding no. 276, Palong Moddhobazar Road, Union Parishad Dakkhinkhan, Dhaka 1230.
Ward no. 04, Paurasava –Shariatpur, PS-Sariatpur Sadar, Phone: 8999279,8999280
Dist: Shariatpur. IP-80901, 80902.
46 Vatara branch (Opening Date - 12-11-2015) 57 Darus Salam Road Branch (Opening Date: 15/01/2018)
10/1, Madani Avenue, Holding No. 2-A/1, (1st floor), North East Darussalam Road,
Natun Bazar, PS- Vatara, Dhaka-1212 Ward -12, Dhaka North City Corporation
IP Phone-81101, 81102. Mirpur Model Thana, Mirpur-1, Dhaka-1216
Mobile: 01710-012709 IP: 84101, 84102
47 Bangabandhu Shamadhi Soudha Branch 58 Madaripur Branch (Opening Date 30/07/2018)
(Opening Date - 15-12-2015) Hazi Abdur Razzak Super Market
Layek Biswas Plaza Holding no. 1634, Main Road, Puran Bazar, Ward no.03,
Holding No-159, Bangabandhu Samadhi Saudha Sarak, Paursova- Madaripur, PO- Madaraba, PS- Madaripur Sadar
Tungipara, Gopalgonj , Dist: Madaripur. IP: 85001; 85002.
IP Phone-81201, 81202.
48 Joydebpur Chowrasta Branch 59 Kafrul Branch (Opening Date: 25/10/2018)
(Opening Date - 26-06-2016) Greater Mymensingh Samity Bhaban
Rafeja Bhaban, Holding No, 23/3, Block-C, Holding No. M/1-A, Section-14, Mirpur Road
Ward No-17, Gazipur City Corporation Ward No. 4, Dhaka North City Corporation
Joydebpur Chowrasta, PS-Joydebpur, Dist- Gazipur. PS – Kafrul, Dist.: Dhaka.
IP Phone-82301, 82302. IP: 85201; 85202
49 Narsingdi Branch 60 Basila Road Branch (Opening Date: 27.12.2018 )
(Opening Date: 01-12-2016) Al-Imdad Market Complex, Basila Road,
360, Rajlaxmi Plaza, Patilbari Road, Thana-Keranigonj, Dist-Dhaka
Narsingdi Bazar, Dist- Narsingdi. IP Phone: 85701; 85702.
IP Phone-82501, 82502.
50 Sreenagar Branch (08/12/2016) 61 Dhanmondi Model Branch (Opening Date: 25/11/2019)
Pilot School Market (1st floor), Sreenagar Bazar, “Mir Onyx Yakub Tower”
Munshigonj. Holding No.17 (New), Road No.6, Mirpur Road
IP Phone-82601, 82602. Dhanmondi R/A, Thana- Dhanmondi
Dist- Dhaka. IP: 86201, 86202
51 Corporate Branch (29/12/2016) 62 Bhanga Branch (opening Date: 24/11/2020)
City Centre Ali Market,
90/1, Motijheel C/A, Dhaka 1000. Holding No-363, Ward No-08,Bhanga Bazar,
IP Phone- 82701, 82702. PS/Upazilla-Bhanga, Pouroshova-Bhanga, Dist.-Faridpur.
IP: 86401, 86402
52 Tangail Branch (Opening date-26/04/2017). 63 PRAGATI SARANI BRANCH
“Shayama Tower” GA-25/5/1, Road Name- Pragati Sharani Road,
Boro Kalibari Road, Adalotpara, Dist-Tangail. Ward No.-18, Shahjadpur, Dhaka North City Corporation,
IP: 82801, 82802 P.S.-Gulshan, Dhaka.
IP : 86801
53 Bhairab Bazar Branch (21/05/2017)
“Omar Faruq Tower”
Holding no.169, Ward no.1
Paurasava- Bhairab, PS- Bhairab Dist.: Kishoregonj.
Mob: 01819152611 IP: 83001, 83002

CHATTROGRAM DIVISION
1 Agrabad Branch (Opening Date-10-04-1996) 10 Lohagara Branch (Opening Date-18-06-2009)

World Trade Centre(2nd floor) Ice Park (1st Floor), Main Road (Near Lohagara Central
102/103 Agrabad C/A, Dist: Chattogram. Mosjid), P.O & P.S- Lohagara,
Phone-031-728342, 713947, 714041, 714504 Dist.- Chattogram.
fax-031-710084, Phone-0303456518, 0303456517, 01815-065948
IP Phone-70401,70402,70403 IP Phone-73301, 73302.
2 Halishahar Branch (Opening Date-09-02-2002) 11 GEC Moor Branch (Opening Date-25.11.2009)
Holding no.-3, Port Connecting Road, Halishahar Housing 1692,Golden Plaza, CDA Avenue(1st Floor)
Estate, Ward No.-26, Chattogram City Corporation, PS- East Nasirabad, GEC Moor, Dist: Chattogram
Halishahar, Dist.- Chattogram. Phone-0312555891, 0312555892, fax-2555893
Phone-031-717201, 2525702, 815702, IP Phone-71901,71902 IP Phone-74201 ,74202
3 Chowmuhoni Branch (Opening Date-12-11-2008) 12 Nanupur Branch (Opening Date-08.10.2009)
Hossain Market, 276-284 D.B. Road, Nanupur Bazar, P.O-Nanupur
Chowmuhani Paurosova P.S- Fatikchari, Dist- Chattogram
Begumgonj, Dist: Noakhali. Phone-044-37151939, 044-37151949
Phone-0321-56122, 0321-53622IP Phone-72901,72902 IP Phone-74001 ,74002
4 Elliotganj Branch (Opening Date-30-10-2008) 13 Hajigonj Branch (opening Date-19-09-2010)
Elliotgonj Bazar, P.O-Elliotgonj, “Chattogram Mansion”
P.S-Dawudkandi, Dist-Cumilla. Holding No. 0821, Chandpur-Cumilla Highway Road,
IP Phone-72801,72802 Ward-06, PO+PS- Hajigonj, Dist- Chandpur
Phone-08424-75129,08424-75130
IP Phone-75701,75702
5 Chandpur Branch 14 Jubilee Road Branch (Opening Date-30-07-2003)
(Opening Date-16-08-2009) Haque Tower(1st Floor)
Faisal Shopping Complex(1st & 2nd Floor) 880/923, Jubilee Road, Dist: Chattogram.
Bishnudi, Chandpur Bus Stand Phone-031-628288, 627155, 840897,
Thana- Chandpur, Dist- Chandpur. fax-031-628288
Phone-0841-67932, 0841-67931, IP Phone-73701 ,73702 IP Phone-72301 ,72302,72303
6 Hathazari Branch 15 Cumilla Branch (Opening Date-30-07-2009)
(Opening Date-16-08-2010) 95/96 Chalk Bazar (2nd Floor)
Hazi M. Siddique Market, Block-B (2nd Floor) PO- Chawk Bazar, P.S- Kotowali, Dist.- Cumilla.
Hathazari Bus Stand, Ward No-03 Phone-081-61363, 081-61364,
P.O & P.S – Hathazari, Dist.- Chattogram IP Phone-73501 ,73502
Phone- 031-2601914, 031-2601915, IP Phone-75001 ,75002
7 Baryarhat Branch 16 Bibirhat Branch (opening Date-21-10-2010)
(Opening Date-17-08-2010) Fatikchari College Market
Al-Amin Shopping Center (1st Floor) P.O+P.S+Upazila - Fatikchari,
Holding No. 161,161/1, Paurasova- Baryarhat Dist- Chattogram.
Upazila & P.S- Mirsharai, Dist- Chattogram Phone-03022-56321, 03022-56318
IP Phone-75101 ,75102 IP Phone-76001,76002
8 Khatungonj Branch (Opening Date-12-12-1999) 17 Kachua Branch (Opening Date-18-07-2010)
M. Rahman Chamber Talukder Super Market
Holding # 276-277, Main Road, Khatungonj, Holding No-111, Ward No-08
Ward # 35, Chattogram City Corporation Kachua, Dist: Chandpur.
PS- Kotowali, Dist.- Chattogram. Phone- 08425-56275,
Phone-031-636358, 624682, 624683, IP Phone-74601 ,74602
fax: 031-639014, IP Phone-71401, 71402
9 Roazarhat Branch (Opening date-24.11.2012) 18 Alankar Moor Branch
A. Farida Shopping Complex (Opening date-27.10.2011)
Kaptai Road, Roazarhat Holding No-68(A), 7, P.C. Road,
P.O & P.S- Rangunia Ward-10, Chattogram City Corporation
Dist: Chattogram. P.O- Custom Academy, P.S- Pahartoly,
Phone-030-2556244, 2556245; IP Phone-78501,78502 Dist.- Chattogram.
Phone-031-2773380,031-2773379, 031-2773378
IP Phone-77601,77602

19 Chawk Bazar Branch (opening Date-15-12-2010) 29 Maijdee Branch (Opening date-18-08-2013)
Mannan Tower (1st & 2nd floor) Bismillah Tower, Holding No-428/B
174/A, Chatteshari Road, Chawkbazar, Chattogram Main Road, Maijdee Bazar
Phone-031-2867367, 2867368, 2867369 P.S- Sudaram (Sadar), Noakhali
IP Phone-76301, 76302 Phone-0321-71814, 71815
IP Phone- 79501,79502
20 Patherhat Branch (Opening Date-19-08-2009) 30 Laxmipur Branch
Khayez Ahmed Shopping Center (1st Floor), Patherhat, PO- (Opening Date 13-12-2014 & Shifted on 30/07/2017)
Noapara, PS-Raozan, “ADHUNIK POURO BIPONI BITAN” (2nd Floor),
Dist.- Chattogram. Holding no. 1428, Laxmipur Bazar Main Road, Laxmipur
Phone-031-2572315, 031-2572316 Mob: 01716-224206, IP- 80001, 80002
IP Phone-73801 ,73802
21 Cox’s Bazar Branch (Opening Date-20.08.2009) 31 Kankirhat Branch (Opening date- 27-12-2014)
Evan Plaza (in front of Cox’s Bazar Pourasava) R.S.Tower,(1st&2nd Floor),East Namar Bazar
Thana Road, Dist: Cox’s Bazar. Vill & P.O - Kankirhat , P.S-Senbag
Phone- 0341-51822, 0341-51968 Dist-Noakhali.
IP Phone-73901 ,73902 IP Phone-80201,80202
22 Feni Branch (Opening date-18.09.2011) 32 Azadi Bazar Branch (Opening Date-07-06-2015)
Grand Huq Tower (2nd & 3rd Floor) Social Islami Bank Ltd.
Holding No-547 & 548, Mizan Road, Feni Jameya Complex(1st Floor)
Phone-0331-74104,74103 Fax-0331-74117 Dharmapur, Azadi Bazar, Fatikchari.
IP Phone-76901 ,76902 Dist: Chattogram IP Phone -80401, 80402.
23 Dewanhat Branch(Opening date-04.10.2012) 33 Laksam Road Branch (Opening Date- 08.06.2015)
700/B, DT Road (1st Floor), Dewanhat Social Islami Bank Ltd.
P.O.+P.S.-Double Mooring, Chattogram. Biswa Road, PO-Ahmed Nagar, P.S-Sadar (South)
Phone-031-2515260, 2515261, 2515262 Laksam Road, Poduar Bazar
IP Phone-78001, 78002 Dist: Cumilla. IP Phone-80501, 80502.
24 Homna Branch (Opening date-29.12.2011) 34 Poddar Bazar Branch (Opening Date-30.05.2016)
Faisal Plaza, Bhai Bhai Shopping Complex (1st Floor)
Holding No. 08, Homna, Cumilla. Poddar Bazar, Ward-04, Union- 7 no. Bashikpur, PS- Laxmipur
Phone-08025-54640, 54641 Sadar, Dist: Laxmipur
IP Phone-77801, 77802 IP Phone-81901, 81902.
25 Shah Mohsen Aowlia Branch 35 Zamidarhat Branch
(Opening date-03.10.2012) (Opening Date- 12-05-2016)
Hajee Imam Shopping Complex Social Islami Bank Ltd.
Building-3, Battali, Anowara, Chattogram Haque Mansion (1st floor), PO- Zamiderhat,
Phone-01849-842400, 01967-786765 PS-Begumgonj, Dist.- Noakhali.
IP Phone-77901,77902 IP Phone-81701,81702
26 Muradpur Branch (Former Aturar Depo Br.) 36 Burichong Branch (Opening Date-31.05.2016 )
(Opening date-26-06-2013 shifted to present address on 29/10/2017) Social Islami Bank Ltd.
S.N. Mim City Haji Md. Joynal Market (1st floor)
Holding No-83/86, Hathazari Road Mirpur Road,Burichong Bazar,
P.S- Panchlaish, Dist: Chattogram . PO+PS-Burichong, Dist- Cumilla.
IP- 79201, 79202 IP Phone-82001, 82002.
27 Akhaura Branch (Opening date-18-05-2013) 37 Sonapur Branch (Opening Date:18/05/2017)
Sarker Plaza (opposite to Akhaura Poura Bhaban) Social Islami Bank Ltd.
Holding No-3, Ward No-4 “Aziz Bhaban”
P.O. & P.S- Akhaura, Dist: Brahmanbaria Holding No. 420, Sonapur Chor Jobbor Road
IP Phone-78901,78902 PS/Upazilla- Noakhali Sadar, Dist:- Noakhali
Mob: 01717192968 ; IP: 82901, 82902
28 College Road Branch (Debidwar) 38 Boalkhali Branch (Opening date: 04-06-2017)

(Opening date-04-07-2013) Social Islami Bank Ltd.
Haque Plaza, College Road, Debidwar New Market “Hamim Plaza”
P.O & P.S- Debidwar , Dist: Cumilla Holding no. BA/161, Ward no.06
IP Phone- 79401,79402 Paurasava- Boalkhali , PS- Boalkhali, Dist.: Chattogram.
Mob: 01818976773 IP: 83201, 83202

39 Nayergaon Bazar Branch 48 Sheikh Mujib Road Branch
(Opening Date: 19/06/2017) Social Islami Bank Limited
Social Islami Bank Ltd. A K Tower
“Mahdi Tower” 225/225-A, Sheikh Mujib Road, Chowmuhani Moore, PS-
Nayergaon Bazar, Matlab Dakkin, Dist: Chandpur. Double Mooring, Dist- Chattogram.
Mob: 01721912102, IP: 83401, 83402 Mob: , IP: 85901; 85902
40 Kazirhat Branch 49 Fulgazi Branch (Opening Date: 17/10/2019)
(Opening Date: 27/12/2017) Social Islami Bank Limited
“Mir A. Hossain Plaza”, Bhuiyan Tower, Fulgazi Bazar, Kapor Patti Goli
Kazirhat Bazar, Bhuzpur, Fatickchari, PS- Fulgazi, Dist.- Feni.
Dist- Chattogram IP: 86001; 86002.
41 Baluchara Branch (Opening Date: 28/12/2017) 50 Eidgaon Branch (opening Date: 21/11/2019)
“Noor Plaza” Social Islami Bank Limited
Holding no. 23, Hathazari Road, Kulgaon, “Nurul Huda Mansion”
Ward- 02 no. Jalalabad, Eidgaon Bus Station, Arakan Road (Highway Road)
Chattogram City Corporation Thana- Cox’s Bazar, Dist.- Cox’s Bazar.
PS- Bayezid Bostami, Dist.- Chattogram. IP: 86101, 86102
42 Shantirhat Branch (Opening Date: 07/06/2018) 51 Patiya Branch (opening Date: 27/11/2019)
Hajee Sobhan Plaza Social Islami Bank Limited
Shantirhat, Union- 6 no. Kusumpura “N. Islam Tower”
PS- Patia, Dist- Chattogram Komol Munshir Hat, Arakan Road, Upazilla/Thana: Patiya,
IP Phone: 84201; 84202 Dist,.- Chattogram IP: 86301, 86302
43 Anderkilla Branch (Opening Date: 24/06/2018) 52 Muradnagar Branch (opening Date: 24/11/2020)
Arunaloy, Holding no.06, Momin Road, Social Islami Bank Limited
Road No. 06, Ward no. 32 , Chattogram City Corporation, PS- Noman Ahmed Market (1st Floor), Ward No-01,
Kotowali, Dist.-Chattogram. Muradnagar, PS-Muradnagar,
IP Phone: 84401; 84402 Dist-Cumilla
IP: 86501, 86502
44 Banskhali Branch (Opening Date: 02/08/2018) 53 Chayani Bazar Branch (opening Date: 24/11/2020)
RFT Saheb Miah City Center Social Islami Bank Limited
Ward No. 01, Union: 5 no. Kalipur, PS-Banskhali M. Haque Plaza, Chayani Bazar, Ward no-07,
Dist: Chattogram. P.O.-Bhobani Jibon Pur, Upozila-Begumgonj,
IP : 85101; 85102 Dist.-Noakhali.
IP: 86601, 86602
45 Nazu Miah Hat Branch (Opening Date: 19.12.2018 ) 54 Bakalia Branch (opening Date: 10-Dec-2020)
Social Islami Bank Limited Social Islami Bank Limited
Khaled Manson Epic Noor Landmark (1st Floor), Holding No-204, Ward No-
Nazu Miah Hat, 15 no. Burischar Union, Ward no.04, 18, Kalamia Bazar, Bakalia, Thana- Bakalia,
PO- Nur Ali Bari-4337, PS- Hathazari, Dist: Chattogram Chattogram City Corporation, Dist- Chattogram.
IP Phone: 85301; 85302. IP: 86701, 86702
46 Brahmanbaria Branch (Opening Date: 26.12.2018) 55 BORO DAROGAR HAT BRANCH

Social Islami Bank Limited Nobi Plaza, Boro Darogar Hat Bazar (Uttar Goli),
Shuveccha Square, Holding No-1309, Sarak Bazar, Ward no.-08, Union-15 no. Wahedpur, PS.-Mirsharai,
Thana+ Dist- Brahmanbaria Dist.-Chattogram.
IP Phone: 85601; 85602 IP: 86901
47 Rangunia Branch (Opening Date: 27/06/2019) 56 SALIMGONJ BRANCH
Social Islami Bank Limited Salimgonj Bazar Sadar Road, Union-Salimgonj, Ward no.-07,
Hafez Chowdhury Tower Thana-Nabinagar, Dist-Chattogram.
Gochora Bazar, PS- Rangunia, IP: 87001
Dist: Chattogram.
Mob: 01721912102, IP: 85801; 85802

BARISHAL DIVISION RAJSHAHI DIVISION
1 Barishal Branch (Opening date-25.09.2011) 1 Rajshahi Branch (Opening Date-10-08-1996)
Mokka Bhaban A H Tower, Holding No-328-331,333-336
Holding No-1, Katpatty Road, Aloker Moor, New Market Road,
Kotwali Model Thana, Ward No-9, Dist.- Rajshahi.
Barishal City Corporation, Barishal Phone-0721-812317, 812452, fax-0721-812317
Phone:0431-61659, 0431-2177480 IP Phone-70701,70702
IP Phone-77301 ,77302
2 Safa Bandar Branch (Opening Date-02.06.2016) 2 Bogura Branch (Opening Date-25-10-1998)
Social Islami Bank Ltd. Vandar Monjil
M.A. Sayeed Bhaban , Safa Bus Stand 776, Rangpur Raod, Borogola, Dist.- Bogura.
Safa Bondar, Mothbaria, Dist- Pirojpur Phone-051-65833, 63943, 61458, fax- 051-63943
IP Phone-82201, 82202 IP Phone-71101,71102
3 Charfassion Branch (Opening Date-02.06.2016) 3 Sirajgonj Branch (Opening Date- 26-10-1998)
Al-Haj Habibur Rahman Faraji Market Zaman Complex,
952 DC Road, Sharif Para, Charfassion Paurasova S.S. Road, Sirajgonj.
Charfassion, Dist.- Bhola. Phone-0751-63203, 64360,63203,
IP Phone-82101, 82102 IP Phone-71201,71202
4 Bhola Branch (Opening Date: 19/06/2017) 4 Chandaikona Branch (Opening Date-19-12-2000)
“B.T. Square” Pabna Bazar, Raigonj, Sirajgonj.
Holding No. 899, Mahajan Patty, Sadar Road, Bhola Phone-07526-56122, 01715-805435, fax-07526-56122
IP: 83501, 83502 IP Phone-71601,71602
5 Jhalakati Branch (Opening Date: 20.12.2018) 5 Shahjadpur SME/Krishi Branch
Social Islami Bank Limited (opening Date-03-10-2010)
03, Doctorpatti Road, PS- Jhalakati Sadar, Alhaj Rajjak Plaza (1st floor), Monirampur Bazar
Dist: Jhalakati Ward-03, P.S & P.O- Shahjadpur, Dist.- Sirajgonj
IP Phone: 85401; 85402. Phone- 07527-64049, 07527-64050
IP Phone-75801, 75802
6 Dupchanchia Branch (opening Date-25-11-2010)
Jobeda Shopping Center (1st floor)
C.O. Office Bus Stand, Dupchachia, Dist.- Bogura.
Phone- 05024-51250, 51251
IP Phone-76201, 76202
7 Naogaon Branch (opening date-12.09.2011)
Mahmuda Plaza,
Kapor Potti, Ward No. 4, Naogaon Pourashava (Sonali Bank
Road), PO + PS- Naogaon
Dist.- Naogaon.
Phone-0741-81112, 81113,
IP Phone-76701 ,76702
8 Pabna Branch (Opening date-05.10.2011)
Holding No-0118-000, Abdul Hamid Road
P.O & P.S- Pabna, Ward No-02,
Dist.- Pabna.
Phone- 0731-51980, 0731-52080
IP Phone-77501 ,77502
9 Natore Branch (Opening Date: 23.12.2018)
Holding-288, Old Bus Stand, Kanaikhali,
PS- Natore Sadar, Dist: Natore
IP Phone: 85501; 85502

SYLHET DIVISION RANGPUR DIVISION
1 Sylhet Branch (Opening Date-27-06-1996) 1 Gobindagonj SME/Krishi Branch
781, Karima Mansion, Dargah Gate, Sylhet-3100. (Opening Date-22-08-2010)
Phone-0821-711282, 0821-710485, Goleza Super Market (Rangpur-Bogura Highway Road)
fax-0821-711282 Holding No-318, Gaibandha
IP Phone-70601, 70602 Phone-05423-75396, 05423-75397, IP Phone-75201 ,75202
2 South Surma Branch(Opening Date-23-07-2009) 2 Dinajpur Branch (Opening Date-23-08-2010)

Chandipool Baipass Road Holding No-1191/1150, Lilir Moor,
(Opposite of South surma Thana), P.O & P.S -Dinajpur, Dist.- Dinajpur.
P.O-Sylhet Sadar, P.S- South Surma, Sylhet. Phone-0531-63692, 0531-61588,
Phone- 0821-2833431, 0821-2833432, IP Phone-75301 ,75302
IP Phone-73401 ,73402
3 Moulvibazar Branch(Opening date-10.10.2012) 3 Rangpur Branch (Opening date-13.09.2011)
183 Shamsher Nagar Road Shah Bari Tower, House-286,Station Road (Guptapara)
Chowmohana, Dist.- Moulvibazar P.O-Rangpur, P.S- Kotwali, Dist.- Rangpur.
Phone- 0861-63906, 63907 Phone-0521- 55183, 55184 (Fax)
IP Phone-78201,78202 IP Phone-76801 ,76802
4 Fenchugonj Branch (Opening date-11.10.2012) 4 Sayedpur Branch (Opening Date-27-11-2014)
Akul Shah Shopping City Altaf Tower
General Osmani Road (Thana road point) Holding No-07, Shahid Dr. Zikrul Haque Road,
P.O. & P.S.- Fenchugonj, Sylhet Sayedpur, Dist.- Nilphamari
Mobile: 01711-040403 IP Phone-79901 ,79902
IP Phone-78301,78302
5 Beanibazar Branch (Opening Date- 24.05.2016) 5 Ranir Bandar Branch (Opening Date-24/05/2017)
Azir Market (1st Floor), Main Road Social Islami Bank Ltd.
BeaniBazar, Dist.- Sylhet “Grameen Tower”
IP Phone-81801,818022 PO- Ranirbandar, PS-Chirirbandar, Dist: Dinajpur
Mob: 01712865829 IP: 83101, 83102
6 Barlekha Branch
(Opening Date-20-11-2016)
Hazi Karim Mansion, Dakkhin Bazar, Baralekha, Moulvibazar
IP Phone-82401, 82402
7 Industrial Park Branch (Opening date: 14/06/2017)
“Sattar Plaza”
Olipur Bazar, Shahjibazar, Sayestagonj, Habigonj
IP: 83301, 83302
8 Sreemongal Branch (Opening Date:12/07/2018)
“Razzak Tower”
Holding no.62, Sreemangal
Dist: Moulvibazar
IP Phone: 84501; 84502
9 Dhakadakshin Branch (Opening Date: 25/07/2018)
Latif Mansion
Dhakadakshin Bazar, Golapgonj, Sylhet.
IP:84701; 84702
10 Tuker Bazar Branch (Opening Date: 26/07/2018)
Anwar Complex
Temukhi, Sonamgonj Road, Tuker Bazar, Jalalabad, Sylhet
IP: 84801; 84802

KHULNA DIVISION
1 Khulna Branch (Opening Date-20-06-1996) 10 Chowgacha Branch (Opening date-30-06-2013)

G.M. Baksh Tower (Ground, 1st & 2nd floor) Dhoni Plaza, Chowgacha Bus Stand
22, Sir Iqbal Road, Khulna City Corporation Ward No-01
Dist.- Khulna. P.O & P.S.- Chougacha, Dist.- Jashore
Phone- & fax-041-722133, 730533 IP Phone- 79301,79302
IP Phone-70501,70502
2 Paikgacha Branch (Opening Date-06.12.2009) 11 Dumuria Branch (Opening Date - 15-12-2015)
Main Road, Paikgacha Zakaria Super Market
Khulna. Dumuria Bazar, Dumuria, Dist: Khulna
Phone- 04027-56678, IP Phone-74301,74302 IP Phone-81301, 81302.
3 Monirampur SME/Krishi Branch 12 Kushtia Branch (Opening Date - 15-06-2015)

(Opening Date-08-08-2010) Holding no. 297/1, N.S. Road, Ward no.- 8,
Shibu Tower, Holding No-2145, Monirampur Bazar, P.S- Kushtia Sadar, PO-Kushtia, Pourosova-Kushtia.
Ward No-03, Paurasova- Monirampur, Dist.- Kushtia.
PS/Upazila- Monirampur, Dist.- Jashore. IP Phone-81001; 81002
Phone-0422778400, IP Phone-74701 ,74702
4 Noapara Branch 13 Navaran Branch (Opening Date-05-05-2016)
(Opening Date-08-08-2010) Afzal Supper Market (1st Floor), Navaran Rail Bazar, Jashore
Noorbag Moor, P.O- Noapara, – Benapole Highway, PO- Zadabpur,
P.S.-Abhoynagar, Dist.-Jashore. PS- Sharsha, Dist- Jashore.
Phone-04222-72300 IP Phone-81601,81602
IP Phone-74801 ,74802
5 Fakirhat SME/Krishi Branch 14 Kalia Branch (Opening Date: 10/06/2018)
(Opening Date-09-08-2010) Gazi Super Market
Mohammad Ali Market, Kathaltola Road, Fakirhat Bazar, PO + Kalia – Khulna Road
PS- Fakirhat, Dist.- Bagerhat. Ward no. 02, Paurasava- Kalia, PS- Kalia
Phone-04655-56150 Dist: Narail
IP Phone-74901, 74902 IP Phone: 84301; 84302
6 Jashore Branch (opening Date-19-12-2010) 15 Boyra Branch (Opening Date: 29/07/2018)
Holding no.-36 (2nd Floor), Rail Road (Chowrasta) Khokon Shopping Complex
P.O.-Jashore, P.S.- Kotwali Holding No. 98, Mujgunni Main Road
Dist.-Jashore. Ward No.16, Khulna City Corporation, PO- GPO-9000,
Phone-0421-64404,; IP Phone-76401 ,76402 PS: Sonadanga, Dist: Khulna
IP Phone: 84901; 84902
7 Satkhira Branch (opening Date-20-12-2010)
London Plaza,(1st Floor) Boro Bazar Road
P.S. & P.O- Satkhira, Dist.- Satkhira.
Phone-0471-65078, 0471-65444,
fax- 0471-65444
IP Phone-76501,76502
8 Bagerhat Branch (Opening date-29.11.2012)
13, Khan Jahan Ali Road
Ward no. 06, Bagerhat Pourashava, Dist.- Bagerhat
Phone- 0468-64347, 0468-64348
IP Phone-78801, 78802
9 Patkelghata Branch (Opening date-22-05-2013)

Patkelghata Bazar, Ward No-05
P.O & P.S.- Patkelghata , Dist.- Satkhira.
Manager: 01718-610385(Mob)
IP Phone-79001,79002

MYMENSINGH DIVISION
1 Mymensingh Branch (Opening date-09-10-2013)

Ali Plaza (2nd Floor), Muktijudda Sarani Road
64, Choto Bazar
P.S- Kotwali (Sadar), Mymensingh
IP Phone- 79601,79602
2 Koyra Bazar Branch (Opening Date- 09-06-2015)
Social Islami Bank Ltd.
Haji Market, (1st floor), Koyra Bazar
PO-Patadaha,, P.S-Madargonj
Dist.- Jamalpur.
IP Phone-80601, 80602
3 Jamalpur Branch (Opening Date -27.03.2016 )
Social Islami Bank Ltd.
A. K Tower, Holding no.285, Tomal Tola Moor, Medical Road,
PO- Jamalpur, PS -Jamalpur Sadar, Dist.- Jamalpur
IP Phone-81401, 81402
4 Netrokona Branch (Opening Date- 21.04.2016 )
Aleya Plaza, 2nd floor, College Road, Satpai,
Dist- Netrokona.
IP Phone-81501, 81502.
5 Sherpur Branch (Opening Date: 22/07/2018)
Jamshed Mansion
Holding No.209, Munshi Bazar, Kharampur Moor
Ward No. 02, Paurasava – Sherpur, PS- Sherpur Sadar, Dist.:
Sherpur
IP: 84601; 84602
SUB-BRANCHES
Chottagram Division
01 Brindabonhat Sub Branch 02 Datmara Sub Branch

(Under Bibirhat Branch) (Under Kazirhat Branch)
Address: Address:
Haji Md. Siddikur Rahman market, Vill-South Payendong, Kazi Market, Shantirhat Bazar, Vill-Shadinagar, Upazilla-
Fatikchari Fatikchari
Opening Date: 16-Jun-2019 Opening Date: 16-Jun-2019
IP Phone: 76050 IP Phone: 83950
03 Chunati Sub Branch 04 Dhamairhat Sub Branch
(Under Lohagara Branch) (Under Roazarhat Branch)
Address: Address:
Haji Shopping Complex, Main Road, Chunoti Bazar, Chunoti, Kazi Abdur Rahman Market (Guddu Plaza), Dhamairhat,
Thana-Lohagara, Dist-Chattogram. Thana-Rangunia, Dist-Chattogram.
Opening Date: 29-Jul-2019 Opening Date: 25-Aug-2019
05 EPZ Sub Branch 06 Bakila Bazar Sub Branch
(Under Cumilla Branch) (Under Hajiganj Branch)
Address: Address:
Monowara Ali Tower, 141, EPZ & Medical Road, Ward no-21, Sheikh Market, Bakila Bazar, Thana-Hajigonj, Dist-Chandpur.
PS-Sadar Dakshin, Dist-Cumilla. Opening Date: 16-Oct-2019
Opening Date: 16-Oct-2019 IP Phone: 75750
IP Phone: 73550

07 S. Club Mour Sub Branch 08 Halishahar Bus Stand Sub Branch
(Under Halishahar Branch) (Under Halishahar Branch)
Address: Address:
House no-01, Road no-02, Block-B, Ward no-12, Halishahar Chowdhury Plaza, Holding-968/2069, Halishahar Road, Ward
Housing Estate, PS-Halishahar, Chattogram. no-11 South Kattali, PS-Pahartoli, Dist-Chattogram.
Opening Date: 19-Dec-2019 Opening Date: 19-Dec-2019
09 Mugrabazar Sub Branch 10 Amirhat Sub Branch
(Under Akhaura Branch) (Under Azadi Bazar Branch)
Address: Address:
Master Plaza, Mugrabazar, Thana-Akhaura, Dist- Didarul Alam Market, Union-Holodia, Thana-Raozan, Dist-
Brahmanbaria. Chattogram.
11 Kotbari Sub Branch 12 Lamburhat Sub Branch
(Under Laksam Road Branch) (Under Patherhat Branch)
Address: Address:
Ayat Plaza, 53, 55 Kotbari Road, Ward no-24, Thana- Sadar L.F. Plaza, Lamburhat, Vill-Bagowan, PS-Raozan, Dist-
Dakkhin, Dist-Cumilla. Chattogram.
13 Munsirhat Sub Branch 14 D.T Road Sub Branch
(Under Chandpur Branch) (Under Dewanhat Branch)
Address: Address:
114, Master Tower, Madrasa Road, Ward No-9, Thana-Matlab Abid Complex, Holding no-506, Ward no-25, D.T. Road,
(South), Dist-Chandpur. Thana-Halishahar, Dist-Chattogram.
Opening Date: 21-Jan-2020 Opening Date: 26-Jan-2020
15 Karnafuli Sub Branch 16 Ramdoyal Sub Branch
(Under Shantirhat Branch) (Under Sonapur Branch)
Address: Address:
Samiur Rahman Building, Fakirnir Hat Raster Matha, Ward Hazi Abdul Ohab Bhaban, Ramdoyal Bazar, Ramgati,
no-4, Karnafuli, Dist-Chattogram. Laxmipur.
17 Bhor Bazar Sub Branch 18 CEPZ Sub Branch
(Under Feni Branch) (Under Agrabad Branch)
Address: Address:
Madrasa Market (Unit-02), Vill- Bhor Bazar, Ward no-05, Hossain Complex, 1st floor, 1956A/2098, Airport Road, South
Thana-Sonagazi, Dist-Feni. Halishahar, Bandar, Dist- Chattogram.
Opening Date: 18-Feb-2020 Opening Date: 03-Mar-2020
19 Kanchannagor Sub Branch 20 Ranir Bazar Sub Branch
(Under Bibirhat Branch) (Under Cumilla Branch)
Address: Address:
R.K. Tower, Temohany Bazar, Manikpur, Fatickchari, Khilzi Villa, Holding no-281(Old), 325(New), 2nd Kandirpar,
Chattogram Ranir Bazar, Ward no-08, Cumilla-3500
Opening Date: 18-Aug-2020 Opening Date: 26-Aug-2020
21 Bazalia Sub Branch 22 Bou Bazar Sub Branch
(Under Lohagara Branch) (Under Khatungonj Branch)
Address: Address:
Monsur Plaza (1st Floor), Bazalia, P.O.-Bazalia, P.S.-Satkania, Bou Bazar, D.C. Road, Opposite site of Sarder Bari, P.O:
Dist-Chattogram Chawkbazar, P.S: Bakalia, Chattogram.
Opening Date: 27-Aug-2020 Opening Date: 03-Sep-2020

23 Birasher Sub Branch 24 Batakandi Sub Branch
(Under Brahmanbaria Branch) (Under Homna Branch)
Address: Address:
759-20, Bir Muktizudda R A M Obaidul Muktadir Chowdhury Amir Complex, Batakandi Bazar, Union-Jogotpur, Thana-
Road, Birashar Bus Stand (East Side), West Medda, Titas, Dist-Cumilla.
Brahmanbaria Opening Date: 27-Sep-2020
Opening Date: 21-Sep-2020 IP Phone: 77850
IP Phone: 85650
25 Akbarshah Sub Branch 26 Sebarhat Sub Branch
(Under Alankar Moor Branch) (Under Zamidarhat Branch)
Address: Address:
Plot no 65&66, Block-D, Grade-2H, Kobollodham, Urban Barik Plaza, Sebarhat, Rajarampur, Senbagh, Noakhali.
Dev. Project, North Pahartoli, P.O- Ferozshah-4207, P.S- Opening Date: 28-Oct-2020
Akbarshah, Dist.-Chattogram. IP Phone: 81750
Opening Date: 22-Oct-2020
IP Phone: 77650
27 Mithachara Sub Branch 28 Marichcha Bazar Sub Branch
(Under Baryarhat Branch) (Under Cox’s Bazar Branch)
Address: Address :
Mithachara Plaza (1st floor), Mithachara Bazar, Mirsharai, Fazal Market, Marichcha Bazar,
Chattogram. Ukhiya, Cox’s Bazar.
Opening Date: 28-Oct-2020 Opening Date: 27-Dec-2020
29 Jhumchari Bazar 30 B Ed. College Road Sub Branch
(Under Cox’s Bazar Branch) (Under Chawkbazar Branch)
Address : Address:
New Hajee Market, Jhumchari Bazar, House:1264/1983/2867, K.B. Aman Ali Road, Ward no.17,
P.M. Khali, Cox’s Bazar. Chawkbazar, Thana: Bakalia, Dist: Chattogram.
31 Saltgola Sub Branch 32 Bazra Bazar Sub Branch
(Under Sheikh Mujib Road Branch) (Under Chowmuhani Branch)
Address: Address:
Ishan Mistirir Hat, Saltgola Road, Holding-2660/4274 Harun-ur-Rashid Super Market
Ward no.-38, Halishahor, Bandor, Chattogram. East Chandpur, Bazra Union, Begumganj, Noakhali
Opening Date: 29-Dec-2020 Opening Date: 01.02.2021
33 Katghar Sub Branch 34 Nayarhat Sub Branch
(Under Agrabad Branch) (Under Baluchara Branch)
Address: Adress:
Saira Shiraj Complex (1st Floor) Monaf Market
North Patenga, Katgor, Chattogram. Nayarhat Bazar, Bayazid Bostami, Chattogram.
Opening Date: 01.02.2021 Opening Date: 25.02.2021
IP Phone: 70470 IP Phone:84050
35 Samitirhat Sub Branch 36 Bakhtiar Para Sub Branch
(Under Nanupur Branch) (Under Shah Mohsen Aowlia Branch)
Rahman Market Bakhtiar Shopping Complex
Nichintapur, , Samitirhat, Fatikchari, Chattogram. Bakhtiar Para, Minnat Ali Hat, Anowara, Chattogram
Opening Date: 25.02.2021 Opening Date: 25.02.2021
37 Brahmanpara Sub Branch 38 Shahrasti Sub Branch
(Under Burichang Branch) (Under Hajigonj Branch)
Haji Market Mojibur Rahman Super Market (1st floor)
Brahmanpara, Cumilla Shahrasti Gate (Doavanga),
IP Phone: 82050 House # 02, Road Name: Cumilla Chanpur Main Road,
Shahrasti, Chandpur
IP Phone: 75770

39 Muktijoddha Complex Sub Branch 40 Bogarbil Bakalia Sub Branch
(Under Feni Branch) (Under Anderkilla Branch)
Feni Zilla Muktijoddha Complex Bhaban Jafar Mansion, Santinagor Bazar, Bogar bil
Feni Sadar, Feni. Road Name: Younus Road, Chattogram City Corporation
IP Phone: 76970 Bakalia, Chattogram.
IP Phone: 84450
41 Amzad Hat Sub Branch 42 Rahmania Bazar Sub Branch
(Under Fulgazi Branch) (Under Nazu Miah Hat Branch)
Hazi Nurul Islam Company Market (1st floor) Noor Salma Tower, Rahmania Bazar, Madari Pool,
Holding no-213, Amzad Hat, Fulgazi, Feni Middle Madarsha, South Madarsha, Somitir Hat-4336
IP Phone: 86050 P.S.- Hat Hazari, Chattogram
IP Phone: 85350
Dhaka Division
01 Gabtoli Sub Branch 02 Shiachar Sub Branch

(Under Narayanganj Branch) (Under Fatulla Branch)
Address: Address:
Gabtoli, Enayetnagar, Fatullah Shiachar, Union-Kutubpur, PS-Fatullah, Dist-Narayanganj
Opening Date: 29-May-2019 Opening Date: 20-Jun-2019
03 Kalma Sub Branch 04 College Gate Sub Branch
(Under Savar Branch) (Under Tongi Branch)
Address: Address:
Kalma, Ward no-07, PS-Savar, Dist - Dhaka. Ovijan 54/A, College Road, College Gate, Tongi, Gazipur.
Opening Date: 04-Sep-2019 Opening Date: 11-Sep-2019
05 Uttar Kutubkhali Sub Branch 06 Goran Sub Branch
(Under Dania Branch) (Under Banasree Branch)
Address: Address:
Khan Super Market at 14, Uttar Kutubkhali, Main Road, Ward 395, South Goran (Goran Tampoo Stand) Khilgaon, Dhaka.
no-62, Thana Jatrabari, Dist-Dhaka. Opening Date: 29-Oct-2019
IP Phone: 73250
07 Matikata Bazar Sub Branch 08 Maniknagar Sub Branch
(Under Mirpur Branch) (Under Principal Branch)
Address: Address:
108, Matikata Bazar, PS- Dhaka Cantonment, Dhaka Ajimunnesa Tower, 67, Uttar Maniknagar (Pukurpar), Ward
Opening Date: 26-Dec-2019 no-07, PS-Mugda, Dist-Dhaka.
IP Phone: 72650 Opening Date: 29-Dec-2019
IP Phone: 70250
09 Pirer bag Sub Branch 10 Karimgonj Sub Branch
(Under Agargaon Branch) (Under Kishoregonj Branch)
Address: Address:
276/4, Moddho Pirer Bag, Mirpur, Ward no-13, Thana-Mirpur, 679/A, Saleha Bhaban, Karimganj Pourashova, Thaka-
Dist-Dhaka. Karimganj, Dist- Kishoreganj.
11 Hossainpur Sub Branch 12 Kashimpur Sub Branch
(Under Kishoregonj Branch) (Under Ashulia Branch)
Address: Address:
Bacchu Miah Super Market, Holding no-98, Hossainpur Jitar Moor, Kashimpur Bazar, Ward no-06, Thana-Kashimpur,
Pourosova, Ward no-08, Thana-Hossainpur, Dist-Kishoreganj. Dist-Gazipur
Opening Date: 28-Jan-2020 Opening Date: 03-Mar-2020

13 Basila Sub Branch 14 Badamtoli Sub Branch
(Under Basila Road Branch) (Under Babu Bazar Branch)
Address: Address:
Haji Mohiuddin Complex, 742/15, Basila Road, Madina Plaza, Holding no-15, Iswar Chandra Ghosh Street,
Mohammadpur, Dhaka. Badamtoli, Thana-Kotowali, Dist-Dhaka.
Opening Date: 04-Mar-2020 Opening Date: 10-Mar-2020
15 Doyagonj Sub Branch 16 Nazimuddin Road Sub Branch
(Under Islampur Branch) (Under Moulvibazar Branch)
Address: Address:
47/1, Sharagupta Road, Dayagonj Natun Rasta, Ward no-40, S.H. Plaza, 90/91, Sir Nazimuddin Road, Dhaka-1211.
PS-Shutrapur, Dist-Dhaka 1100. Opening Date: 19-Mar-2020
Opening Date: 16-Mar-2020 IP Phone: 71050
IP Phone: 75450
17 Kawlipara Sub Branch 18 Shaheprotap Sub Branch
(Under Dhamrai Branch) (Under Panchdona Branch)
Address: Address:
Madina Market, 1st Floor, East Side, Nobogram Bazar, Late Haji Shafi Uddin Munshi Plaza, Shaheprotap More, Ward
Nobogram, Dhamrai, Dhaka. no-06, Union-Shilmandi, PS-Narsingdi Sadar, Dist-Narsingdi.
Opening Date: 28-Jun-2020 Opening Date: 29-Jun-2020
19 Godnail Sub Branch 20 Raipura Bazar Sub Branch
(Under Fatulla Branch) (Under Narsingdi Branch)
Address: Address:
2 no. Dhakeshore Bus Stand, Godnail, Shiddirganj, Raipura Trade Center, 234, Thana Sadar Road, Ward no-01,
Narayanganj Thana-Raipura, Dist-Narsingdi
Opening Date: 01-Sep-2020 Opening Date: 28-Sep-2020
21 Satarkul Bazar Sub Branch 22 DSE Tower Sub Branch
(Under Uttar Badda Branch) (Under Principal Branch)
Address: Address:
Riyaz Super Market, Ward no-41, Satarkul Uttar Para, Satarkul DSE Tower, Plot-46, Road-21, Nikunja-2, Dhaka-1229.
Bazar, Badda, Dhaka-1212 Opening Date: 15-Dec-2020
IP Phone: 78450
23 Badda Sub Branch 24 Mugda Sub Branch
(Under Rampura Branch) (Under Foreign Exchange Branch)
Holding no.-Cha-63/6, North Badda, Building Name: Khadiza Palace
Road name: Pragati Sarani Road, Holding no.-145
Ward no.-21, Dhaka North City Corporation, Road name: North Mugda Para, Modina Bag (Ground Floor)
P.S.-Badda, Ward no.- 71, Dhaka North City Corporation
Dis.-Dhaka-1212. P.S.- Mugda
IP Phone: 74150 Dist.- Dhaka.
IP Phone: 71850
25 Narisha Bazar Sub Branch 26 Chondrer Bari Sub Branch
(Under Muksudpur Branch) (Under Sreenagar Branch)
Building Name: Mobarok Hossain Market Building Name: Bazlur Rahman Super Market (1st Floor)
Vill- Narisha Bazar Vill/Area: Chondrer Bari
Ward no.- 07 Ward no.- 06
Union no.- 06 Union- Holdia
P.S.-Dohar P.S.- Lohajong
Dis.-Dhaka. Dist.- Munshigonj

Khulna Division
01 Tala Sub Branch 02 Budhata Sub Branch

(Under Patkhelghata Branch) (Under Satkhira Branch)
Address: Address:
Sheikh Plaza, Vill-Tala, PO+Upazilla-Tala Budhata Bazar, Budhata, Assasuni, Satkhira.
Ward no-08, Dist-Satkhira Opening Date: 02-Dec-2020
IP Phone: 79050
03 Churamon Kati Sub Branch
(Under Jashore Branch)
Address:
Jamir Gazi Complex (1st floor)
Vill+Post.-Churamon Kati,
Jashore Sadar, Jashore.
Opening Date: 29-Dec-2020
IP Phone: 76450
Mymensingh Division
01 Balijuri Bazar Sub Branch 02 Nandina Sub Branch

(Under Koyrabazar Branch) (Under Jamalpur Branch)
Address: Address:
Talukder Market, Holding no-65, Ward no-04, Jamalpur Road, Nandina Moddho Bazar, Nandina, Jamalpur
Balijuri Bazar, Thana-Madargonj, Dist-Jamalpur. Opening Date: 25-Oct-2020
Opening Date: 19-Feb-2020 IP Phone: 81450
IP Phone: 80650
03 Nakla Sub Branch 04 Mohanganj Sub Branch
(Under Sherpur Branch) (Under Netrokona Branch)
Address: Address:
Holding#096300, Road-Feeder Road, Ward no.-5, Nakla Station Road, Mohongonj,
Pouroshova, Netrokona.
P.S.-Nakla, Dist-Sherpur. Opening Date: 30-Dec-2020
Opening Date: 15-Dec-2020 IP Phone: 81550
IP Phone: 84650
Barishal Division Rajshahi Division
01 Barishal University Sub Branch 01 Uposhohor Sub Branch

(Under Barishal Branch) (Under Bogura Branch)
Building Name: Khan Market Address:
Vill/Area: Karnakathi R.C. Tower, Puraton Dinajpur Road, Bogura Pourosova, Ward
Ward no.-09 no-01, Thana-Bogura, Dist-Bogura.
Union- 7 no. Charkawa, Barishal Sadar, Opening Date: 08-Mar-2020
P.O.- Karnakathi, Bandar, Barishal. IP Phone: 71150
IP Phone: 77350
Sylhet Division
01 Tilagor Sub Branch 02 Bhadeshwar Sub Branch

(Under Sylhet Branch) (Under Dhakadakshin Branch)
Address: Address:
Deen Centre, 07, Batatikar, Tilagor, Sylhet. Mukham Bazar, Bhadeshwar, Golapgonj, Sylhet.
Opening Date: 22-Mar-2020 Opening Date: 02-Sep-2020

Corporate Office:
City Center, 90/1,
Motijheel C/A, Dhaka-1000
PROXY FORM
I/We..................................................................................................................................................................................................................
of (Address)......................................................................................................................................................................................................
.........................................................................................................................................................................................................................
being a member of SOCIAL ISLAMI BANK LIMITED entitled to vote hereby appoint Mr./Mrs./Miss ..............................................................
as my proxy to join and vote for me and on my behalf at the 26th Annual General Meeting (AGM) of the Shareholders of Social Islami
Bank Limited will be held virtually by using digital platform through link https://sibl.bdvirtualagm.com (in pursuant with BSEC order SEC/
SRMIC/94-231/91 dated March 31, 2021) on Tuesday, the 6th July, 2021 at 11:00 a.m.
As witness my hand this ........................ day of ....................... 2021.
_________________________ __________________________
(Signature of the Proxy) Signature of the Member
Date : .............................................

Folio No : ……………......................…....….. _____________________

Signature Verified by
BO ID No :
No. of Shares held : .……………….
Notes:
1. A Member entitled to join and vote at the General Meeting may appoint a Proxy who will also be a Member of the company to join
and vote in his/her behalf through digital platform. The Proxy Form, duly stamped, must be submitted at the Registered Office of
the Company not later than 72 hours before the time fixed for the meeting.
2. Signature of the Member must be in accordance with the specimen signature registered with the Company or with the Depository.
..............................................................................................................................................................................................................................
ATTENDANCE SLIP
Corporate Office:
City Center, 90/1
Motijheel C/A, Dhaka-1000
I/We hereby record my/our presence at the 26th Annual General Meeting (AGM) of the Shareholders of Social Islami Bank Limited will be
held virtually by using digital platform through link https://sibl.bdvirtualagm.com (in pursuant with BSEC order SEC/SRMIC/94-231/91
dated March 31, 2021) on Tuesday, the 6th July, 2021 at 11:00 a.m.
Name of Member/Proxy: …….............................................................................................................................................................................
Registered Folio/BO No: ...........................…...........................................….....holding of....…...…............................. Ordinary Shares of Social

Islami Bank Ltd.
_____________________________
Signature of Member/Proxy


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ANNUAL REPORT 2020 | 1

2 | SOCIAL ISLAMI BANK LIMITED

BRANCH NETWORK 367

DIVIDEND DISTRIBUTION POLICY 169

ANNUAL REPORT 2020 | 3

Bebyj Avivex ÔAvnKvgyj KziAvbÕ- Gi cÖ_g L‡Û e‡j‡Qb:

KziAvb gRx‡` Avjøvn ZvÕAvjv e‡jb:

4 | SOCIAL ISLAMI BANK LIMITED

IN THE NAME OF ALLAH, MOST GRACIOUS, MOST MERCIFUL

“..... O you who believe! Be afraid of Allah and give up

ANNUAL REPORT 2020 | 5

6 | SOCIAL ISLAMI BANK LIMITED

ANNUAL REPORT 2020 | 7

8 | SOCIAL ISLAMI BANK LIMITED

ANNUAL REPORT 2020 | 9

All Shareholders of Social Islami Bank Limited

Subject: Annual Report 2020 of Social Islami Bank Limited.

As-salamu Alikum Wa Rahmatullah,

This is for your kind information and record, please.

Abdul Hannan Khan

10 | SOCIAL ISLAMI BANK LIMITED

By Order of the Board

Date: 14th June, 2021 (Abdul Hannan Khan)

ANNUAL REPORT 2020 | 11

• Fast, accurate and satisfactory • To the nation

• Balanced & sustainable • To the employees

• Introducing innovation islamic

• Attract and retain high quality

• Empowering real poor families

• Providing support for social

12 | SOCIAL ISLAMI BANK LIMITED

Balanced and sustainable

Ensure best CSR

STRATEGIC innovative Islamic

ANNUAL REPORT 2020 | 13

14 | SOCIAL ISLAMI BANK LIMITED

ANNUAL REPORT 2020 | 15

CODE OF CONDUCT FOR THE EMPLOYEES

16 | SOCIAL ISLAMI BANK LIMITED

Name of the Company Business Identification No.

Registered Office Authorized Capital

Chairman Investors’ Inquiry:

Auditors For SIBL Securities Limited (a subsidiary of SIBL):

Bank’s License No.

Tax Payer Identification No.

ANNUAL REPORT 2020 | 17

2000 2007 2011

18 | SOCIAL ISLAMI BANK LIMITED

2014 2018 2020

ANNUAL REPORT 2020 | 19

20 | SOCIAL ISLAMI BANK LIMITED

ANNUAL REPORT 2020 | 21

DEPOSIT PRODUCTS • Mudaraba Deposit Pension Scheme

22 | SOCIAL ISLAMI BANK LIMITED

• Visa Islami Prepaid Card Products:

• Visa Islami Debit Card Products:

ANNUAL REPORT 2020 | 23

24 | SOCIAL ISLAMI BANK LIMITED

01. Prof. Md. Anwarul Azim Arif Chairman