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Shahjalal Bank Ltd, a bank run by Shariah laws, is all set to launch initial public offerings (IPOs) worth Tk 935 million by the end of this year as it has posted an overwhelming growth in deposit and investment.
As more people are accepting Islamic banking systems, Shahjalal Bank is right there to offer them lucrative packages.
"We are going to issue Tk 935 million worth of IPOs by December if the Securities and Exchange Commission approves our proposal," said a senior official of the Bank. The current paid up capital of Shahjalal Bank is around Tk 466 million.
The Bank is receiving huge number of applications for industrial loans. Its investment nearly doubled to Tk 7.16 billion in 2004 from Tk 4.32 billion in 2003. The projected investment for the current year is Tk 14 billion.
"Until December last year, our investment in textile and garment sector stood at Tk 1.0 billion that was followed by real estate," the senior official added.
Shahjalal's investment in real estate sector grew to Tk 700 million at the end of 2004. An official said, "Although we do not love to invest in real estate sector, but demand for fund there is huge."
Not only investment, Shahjalal's deposits also grew remarkably during the period. It was Tk 6.03 billion in 2003 and Tk 9.09 billion in 2004. It might grow to Tk 15 billion this year.
As more and more people prefer Islamic Banking, Shahjalal has applied to the Bangladesh Bank for opening four more branches. Currently, it has 12 branches across the country.
The Bank is persistently working on product diversification.
"We are going to make you millionaire within 12 years through our specific depository scheme," claimed an official. In 12 years, a client will deposit around Tk 554,400 only but receive Tk 1.0 million.
The millionaire programme is not that popular. The Bank's most popular deposit scheme is Mudarabah monthly income scheme. The scheme has attracted Tk 1.05 billion in four years.
"We are planning to develop a 'bond' for fixed income group," said the senior banker. He believes that the bond would be lucrative to the small depositors since very few such schemes are available in the banking world.
"We have not yet determined the face value of a bond, it may be five thousand taka, may be double than that," he said.
Another product Shahjalal is planning, is opening a Cash-Waqfa scheme. Under the scheme philanthropists would donate a certain amount of money that would keep on revolving while the profit would be distributed among the nominee(s), such as an orphan or a poor meritorious student.
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