Abstract
This study attempts to understand the level of efficiency of investment management of social Islami bank limited (SIBL). In this regards, different aspects (i.e., amount, ratio, profit and growth) of deposit, investment, investment modes and procedures are scrutinized thoroughly. To conduct the study, secondary data sources have been primarily used. Some information was also collected from officials over the phone. The study was based on five consecutive years i.e., 2015 to 2019.The major findings are that the ratio of investment deposit also remains as high as 90%. The bank invests more in Murabaha, Bai-Muazzal, HPSM and Quard. The ratio of classified investment to total investment increased 8.20% till 2017 and decrease to 6.63% up to 2019 whereas the ratio of unclassified investment decrease to 89.09% till 2017 and increase to 91.71% up to 2019. There has an increase of sub-standard and doubtful investments till 2017 and a decrease up to 2019. But in case of bad or loss investment, an upward trend has been observed till 2018 and had a negligible decrease in 2019. The last part of the analysis shows that the overall profit growth of investment fluctuated over years but remains positive i.e., 11.39%. In conclusion, the bank is moderately efficient in investment management.
Highlights
To understand the importance of the banking business and its contribution to an economy, it is important to learn how the banking system works and how it executes the cost-benefit analysis
Objectives of the Study The primary objective of this study is to evaluate the performance of investment management of Social Islami Bank Limited
The secondary objectives of this report are to find out the basic criteria of investment and investment management practice of a bank, analyze investment management practices of Social Islami Bank Limited (SIBL), explore the findings and problems faced by Social Islami Bank Limited (SIBL) in investment management and suggest some recommendations of the bank in this regard
Summary
To understand the importance of the banking business and its contribution to an economy, it is important to learn how the banking system works and how it executes the cost-benefit analysis. Social Islami Bank Limited (SIBL) comprised of SIBL Securities Ltd, SIBL Investment Ltd, SIBL Foundation Hospital, a second-generation commercial bank, is a leading value-added bank https://www.cribfb.com/journal/index.php/ijibfr International Journal of Islamic Banking and Finance Research. It offers the most up to date banking services. It has an efficient credit and risk management department which allows it a competitive and effective serviceoriented technology-driven profit-earning Bank. SIBL was able to reduce the classified loan and unclassified loan by 6.63% and 20.53% respectively in 2019 with a focus to improve asset quality, the sustainability of profit growth, recovering classified and written-off loans (Social Islami Bank Limited [SIBL], 2020). It is endeavored to elucidate the independence of loan, risk and profitability thoroughly as loan, credit and income the three concerning parts for a bank
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