Islami Bank Bangladesh Limited Research Articles

Foreign Exchange Operations of Islami Bank Bangladesh Limited

In the dynamic global financial landscape, foreign exchange operations play a pivotal role in facilitating international trade and economic activities. Islami Bank Bangladesh Limited (IBBL) has emerged as a significant player in the country's banking sector with a strong commitment to Shariah-compliant practices. Understanding the nuances of its foreign exchange operations is essential for assessing its contribution to the national economy. This study aimed to comprehensively analyze the foreign exchange operations of Islami Bank Bangladesh Limited, focusing on its performance and adherence to Islamic principles. The research involved an in-depth examination of IBBL's foreign exchange operations, including documentary analysis, interviews with bank officials, and a review of relevant literature. Data on foreign exchange transactions, compliance with Shariah principles, and financial performance were analyzed. The study found that IBBL has demonstrated commendable performance in foreign exchange operations. It has successfully maintained a substantial share of the foreign exchange market in Bangladesh, accounting for over 20% of total transactions. Moreover, IBBL's strict adherence to Shariah principles in its foreign exchange activities has positioned it as a reputable Islamic banking institution. The bank's compliance rate with Islamic principles in foreign exchange dealings exceeded 90%, reflecting its commitment to ethical banking practices. Islami Bank Bangladesh Limited has emerged as a prominent player in the foreign exchange market, maintaining both financial viability and adherence to Shariah principles. Its commitment to ethical and Islamic banking practices has contributed significantly to the country's economic growth. IBBL should continue to focus on enhancing its foreign exchange operations, ensuring strict adherence to Islamic principles, and expanding its market presence.

Uncovering the Extent of Social Responsibility of Private Commercial Banks: A Comparative Study on CSR Activities during COVID Pandemic

The true meaning of CSR established when organizations contribute to society both in normal and crisis times where CSR; corporate social responsibilities reflect responsibility and commitment of social wellbeing from organizations to society. Bonding strong relationships with stakeholders, capturing customer loyalty, attracting investors, and holding the responsibilities for society, CSR plays a unique role. People across the world are trapped in the corona pandemic where an enormous loss hit almost every sector and the economy also thundered for a time being. The study focused on CSR initiatives and the dynamism of 43 scheduled Private Commercial Banks (PCBs) in the advent of the COVID-19 pandemic from the banking industry. Published secondary data has been used to perform a comparative analysis on the CSR components to extract the mechanisms of CSR activities and finding the extent the banks have accomplished the policy guideline of Bangladesh bank. The study considered the CSR activities of ten banks from 2018-2021where Islami Bank Bangladesh Limited (IBBL) and Dutch-Bangla Bank Limited discovered as the highest supplier of CSR funds for 2018-2019 while in 2020-2022, during the COVID, the uppermost contributors were IBBL and EXIM Bank. This study reveals before or after the COVID pandemic, PCBs prioritize disaster-management sectors for their CSR activities while focusing less on environmental, cultural, infrastructure, and income-generating activities. Despite the significance of a state's health-sector, the study didn’t observe as much COVID contribution as expected. However, the contribution from CSR has been gradually increasing since the COVID pandemic broke out. Keywords: Bank CSR, Social responsibility during pandemic, Private commercial banks, COVID Pandemic DOI: 10.7176/EJBM/14-20-01 Publication date: October 31 st 2022

Islamic Microfinance as a Poverty Reduction Tool in Terms of Islamic Finance: An Analysis of the Islami Bank Microfinance Scheme in Bangladesh

Although Microfinance is one of the essential parts of poverty reduction, however, there are so ‎many microfinance schemes that provided financial help under the various organization models ‎in the world. But a Muslim is not able to benefit from these schemes since most of the time, ‎microfinance schemes are provided into a conventional microfinance system which includes the ‎‎“interest (Riba)” that is strictly prohibited for Muslims. Nevertheless, this study constitutes a ‎linkage between Islamic Finance and IBBL Islamic microfinance scheme, whether it works for alleviating poverty in ‎Bangladesh. As it is known that Islami Bank Bangladesh Limited (IBBL) focused Shariah ‎compliance disclosure by establishing its reputation and differentiating itself from conventional ‎microfinance systems. Accordingly, this article will point out how Islamic microfinance follows ‎the Islamic Shari’ah in its operation and helps clients to improve their moral and ethical values ‎through Rural Development Scheme (RDS), which allows the rural Muslims in Bangladesh to ‎involve in the Islamic microfinance schemes. Applying performance analysis techniques, this ‎article analyzes the status of Rural Development Schemes (RDS) offered by Islami ‎Bank Bangladesh Limited, Bangladesh, where the specific objectives of this study include ‎analyzing the allocation efficiency of RDS, and financial performance (Risk and Return ratios) ‎of RDS of Islami Bank Bangladesh Limited and how it works as an alternative tool for poverty ‎reduction through their various investment models. With this method, this article mainly argues ‎whether Islamic microfinance provides an alternative to poverty reduction. ‎

Impact of Rural Development Scheme of Islami Bank Bangladesh Limited (IBBL) Upon Economic Development of the Rural Poor of Bangladesh

Bangladesh, the smallest but populous country in the South Asia region with 160 million people, More than 60% of its citizens live in the villages, and 50% of the total population depends on agriculture. Rural people also control more than 30% of the entire economy. Most of the village people are highly interested in cultivation and other production where needs physical effort, but they were suffering from the fund crisis that hinders the production of crops and the cultivation of fisheries and livestock. Due to the financial crisis, they involved their children in cultivating and farming instead of sending them to school. According to the necessity of financing to planting different aspects, they are collect petty cash as a short term loan from neighborhood moneylenders and other various NGOs at a high rate of interest. This orientation carries unlimited agonies to the country based business visionaries. The Trending Microfinance Institutions (MFIs) provides small loans among low salaries in Bangladesh with the end goal of lightening neediness and enabling poor people. Commercial business banks in Bangladesh are likewise connected to offer smaller-scale money related administrations. Islami Bank Bangladesh Limited, a private Islamic oriented bank, offered the Rural Development Scheme (RDS). This imaginative Islamic microfinance system answers the interest of the country Muslim poor in Bangladesh, who were forgotten about from ordinary smaller scale financing because of religious convictions. The RDS's key empowering agents are social condition, a helpful strategy condition, institutional and authoritative limit, and a devoted administration with the vision to scale up the RDS program in Bangladesh. In contrast to customary NGOs and microfinance organizations (MFI), Islamic MFIs lend advance cash in kind; the product's responsibility carefully lies with the store to the supplier until the client has wholly reimbursed the agent. The reason for this paper is to analyze the capability of Islamic Microfinance as an elective apparatus for destitution lightening. This RDS microfinance's analysis examined both economic and social effects and invested at a general end that this program remarkably affects the chosen financial parts of the customers. Data have been collected through questionnaires from the needy rural beneficiaries from selected three areas in Chittagong district named Boalkhali, Banskhali, and Baroyiarhat. The choice of selected these three areas is located in the surround of the section from three sides. So the outcome of this questionnaire gave an approximate picture of the district. Collected data have been analyzed using different statistical tools to get the results and suggest policy implications, if any.

Measurement of Financial Performance of a Commercial Bank from Varied Perspectives: A Case Study of Islami Bank Bangladesh Limited

Purpose: The study aims to measure the financial performance of Islami Bank Bangladesh Limited (IBBL) from three different perspectives, such as the bank management perspective, market perspective, and shareholder perspective. Design/Methodology/Approach: A range of financial ratios/indicators are used, include activity ratios, short-term solvency ratios, asset quality ratios, and management capability ratios, to illustrate the performance of the bank in several operational areas. Subsequently, accounting return-based, market-based, and value-based performance measures are used to assess the financial performance of the bank. All data are collected from the publicly available annual reports of the bank over the period 2012-2017. Findings: The study finds that the bank has not faced liquidity problem and it has enhanced its efficiency throughout the study period. However, it has experienced poor management capability in the collection of deposits. Overall, the study finds that the financial performance of the bank from all perspectives is satisfactory with a little variation throughout the study period. Research Limitations: The results, however, are subject to several limitations, such as it uses short-term performance measures and fails to assess the causal relationship between financial performance and other financial factors. Originality/Value: Unlike prior studies, the study assesses the financial performance of IBBL using market-based and value-based performance measures along with accounting return-based performance measures. The outcomes of the study are important for different stakeholders of the bank, particularly employees, depositors, and shareholders. The current bank management also requires the same outcomes, as they require improving the management capability area to achieve its vision.

Comparative compliance status of AAOIFI and IFSB standards

PurposeThis paper aims to examine the compliance status of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Financial Accounting Standards-1 and Islamic Financial Services Board (IFSB) Standard-4 by Islami Bank Bangladesh Limited (IBBL), recognizing the regulatory influence for complying with AAOIFI and IFSB standards and identifying the factors influencing the compliance with these standards.Design/methodology/approachThe present study used content analysis approach for investigating the compliance status. The study considered IBBL as the only sample because it is the only Islamic bank in Bangladesh which is the member of both AAOIFI and IFSB. Hence, this paper investigated the compliance status of IBBL as a member of AAOIFI and IFSB. The study examined the annual reports of 2008-2012 as these were the latest and contemporary reports in 2013 when the study was conducted. SPSS software version 22.0 was used to analyze the data. A total of 203 items under 13 categories of AAOIFI standard and 133 items under 17 categories of IFSB standard were considered. Ordinary least squares was run to test the hypotheses of the study.FindingsThe study found that IBBL on an average complied 46.31 per cent of AAOIFI and 52.50 per cent of IFSB standards during the period, and importantly, IBBL did not comply some of the categories of required disclosures. The study also observed that size, as measured by total asset and number of branches, has a significant influence on compliance with IFSB standard, but not AAOIFI. The findings of the study depicted that IBBL did not reasonably recognize the importance of complying with AAOIFI and IFSB standards. Poor compliance or non-compliance with AAOIFI and IFSB accounting and reporting standards by IBBL exposed that the bank is not efficient in managing Shari`ah compliance risks, operational risks and transparent financial reporting. Therefore, recognition of the Shari`ah standards by the respective IFIs and a “regulatory push” is vital for improving the level of compliance with these standards.Research limitations/implicationsThe study considered IBBL as the only sample of the study because it is the only Islamic bank in Bangladesh which holds the membership of both AAOIFI and IFSB. The fiscal years 2008-2012 only were selected to evaluate the compliance status of the AAOIFI and IFSB standards in preparation and presentation of the financial statements of IBBL for comparative analysis because IFSB standard for accounting and disclosure was formulated in 2007; hence, the study could not evaluate the compliance status before 2008.Practical implicationsThe study will help IBBL in identifying their limitations in complying AAOIFI and IFSB standards and also the regulators in designing the accounting and reporting frameworks in regulating Islamic banks in Bangladesh. The study would help IBBL in identifying the reasons for non-compliance, how improvement in compliance level may help the bank in mitigating Shari`ah compliance and operational risk and how new legal and institutional framework may improve the level of compliance with those standards.Social implicationsThe study observed that the AAOIFI and IFSB standards were set for increasing the level of Shari`ah compliance, but the compliance status showed that different classes of accounting and reporting were ignored from compliance by IBBL. This study will benefit the stakeholders in choosing a Shari`ah-compliant bank.Originality/valueThis is a unique study which considered both AAOIFI and IFSB accounting and reporting standards in evaluating the reporting compliance status of an Islamic bank and identified the influence of reporting compliance on managing Shari`ah compliance risks, operational risks and transparency. This study expects to instigate the Islamic banks in complying accounting and reporting standards for being Shari`ah-compliant.

Whether Shari’ah compliance efficiency is a matter for the financial performance

PurposeShari’ah is the foundation of Islamic banks. Although all the Islamic banks required complying with the Shari’ah requirements fully, the level of compliance differs among the Islamic banks. At the same time, Islamic banks have been performing well, but all do not demonstrate similar financial performance. This paper aims to explore whether Shari’ah compliance efficiency makes any difference in financial performance of Islami Bank Bangladesh Limited (IBBL).Design/methodology/approachThis study used IBBL as a case. For exploring the issue of study, this paper applied an e-mail interview approach and interviewed 24 interviewees including financial analysts, IBBL clients and executives of regulatory bodies, the IBBL and other Islamic- and interest-based traditional banks. Interview opinions are then analyzed and interpreted for a deeper understanding of the topic.FindingsThe study observed that some other factors influence the financial performance of IBBL, but Shari’ah compliance is the dominant instinct of acquiring the leading position. Superior Shari’ah compliance creates internal strengths and external opportunities that facilitate IBBL in achieving higher financial performance. Most interviewees argued that Shari’ah is the only disposition that makes IBBL unique. Moreover, the bank that considerably follows Shari’ah gets better financial outcomes.Research limitations/implicationsThe study used a qualitative method using interview responses only for evaluating the relationship between Shari’ah compliance and financial performance. Further study may be conducted based on a quantitative approach.Practical implicationsThis paper expects to uphold the significance of Shari’ah in improving the financial performance of IBBL and simultaneously motivating the parties associated with the Islamic banks in enhancing the level of Shari’ah compliance. Moreover, this study provides new insights into the importance Islamic banks and their performance in relation to the choice of customers.Originality/valueThis study explores the significance of Shari’ah compliance in creating avenues for greater financial performance and develops a model showing the ways how Shari’ah compliance leads Islamic banks to achieve higher financial positions.

Banking on Shared Value: A Study on IBBL in Bangladesh

Objectives: The paper strives to generate deep insights into the shared value practices of Islami Bank Bangladesh Limited (IBBL). The specific objectives are to examine the extent to which IBBL is creating shared value through its innovative products and to comprehend the motives for such value creation. Methods/Statistical Analysis: The study is founded on case study research design. The case study has used published financial information as well as interviews with practicing managers and customers of IBBL to triangulate data and validate the results. Findings: The study reveals that IBBL, to some extent, has been creating shared value in all the three areas of Porter and Kramer’s shared value concept but mostly in the areas of re conceiving products and markets and redefining value chain to improve productivity. Although shared value is practicing at IBBL, its managers hardly acquainted with Porter and Kramer’s shared value model. The study also demonstrates that the main motivating factor behind pursuing shared value at IBBL is to reach market resources in the form of goodwill and brand image. Bank customers also appreciated the shared value effort as they are truly benefiting from the shared value practices of IBBL. Application/Improvements: The way IBBL is performing its banking business (taking social problems as business opportunities to create shared value) will be a role model for other banks both in developed and developing countries. Keywords: Banking on Shared Value, Creating Shared Value, Islamic Banking Shared Value, Shared Value Practices, Sharia’h-Based Banking

MEASUREMENT OF TRENDS OF SOME INFLUENTIAL VARIABLES: A COMPARISON BETWEEN BRAC BANK LTD. AND ISLAMI BANK BANGLADESH LTD.

Banking sector is a fundamental element of a financial system of a country. Bangladesh is a developing country and its financial system is good and upward trend oriented. Islami Bank Bangladesh Limited (IBBL) and BRAC Bank Limited (BBL) are the two prospective banks in Bangladesh. The paper attempts to measure trends of some influential variables. Through Kaiser-Meyer-Olkin (KMO) and Bartlett’s test of Sphericity five influential variables are identified like net profit, investment/loans and advances, fixed assets, other assets and cash. All the variables show better position in IBBL than BBL. The researchers also have identified some problems in IBBL and BBL and recommended some suggestions for overcoming the problems.

Ethical Banking and Islamic Banking : A Comparison of Triodos Bank and Islami Bank Bangladesh Limited

Ethical finance and Islamic finance are the two important topics in the post global financial crisis market environment and in the context of sustainable development goals and circular economy. If Islamic finance is inherently ethical finance, then what remains the difference between the two is an interesting theme for investigation. Islamic finance is governed by universal and divine legal and moral principles and standards related to economic transactions. Contemporary Islamic financial practices are however, strongly criticized for giving precedence to legal forms over ethical substance and for the rising gap between moral ideals and practical realities. Ethical finance is a conscious human effort to reform finance and it embraces environmentally, socially and morally conscious practices. In this paper we select two banks, namely Islami Bank Bangladesh Limited (IBBL) and Triodos Bank. We perceive that the first is an ideal Islamic Bank and the second is an ideal Ethical Bank. We undertake an analysis of the content of balance sheet disclosures of the two banks and try to gauge the similarities and divergences in their business principles and practices. The analysis uncovers that the current practices of IBBL may far exceed other Islamic banks in terms of financial inclusion, microfinance, gender balance, SME financing and green banking while still being financially stable and profitable. However, Triodos Bank has some significant lead over IBBL regarding ethical practices since it only promotes sustainable businesses. If Triodos Bank exceeds IBBL in ethical expectations as we conclude, then it is far ahead of other Islamic banks in such comparison. The implication of our conclusion is that Islamic banking needs ethical reform and this can be benchmarked with Triodos Bank’s business model. For Islamic banks the correct approach would be to strike the right balance between ethics, moral standards, Sharī‘ah compliance and profitability. The Islamic banking model has in-built features to ensure Sharī‘ah compliance, and this can be enhanced through adopting sound ethical practices as well as dedicating efforts towards being environmentfriendly. The paper attempted to present some considerations which if present in Islamic banks would take them away from the criticism of being only forprofit in motivation. Triodos has balanced its for-profit and not-for-profit motivations letting the later to lead the first.

Rural Development Scheme: A Case Study on Islami Bank Bangladesh Limited

Islami Bank Bangladesh Limited (IBBL) has introduced “Rural Development Scheme” in 1995 to cater to the investment needs of the agriculture and rural sector of the country to create opportunity for employment and raising income of the rural people. The authority of RDS should increase the size of investment in order to cope with the change in value of currency because of inflation and other economic reasons. RDS should project their volume of activities for future; then all parties involving in managing RDS should be assigned and held responsible for the job assigned at the beginning of the year. In this research paper examines the performance of RDS should be subject to Balanced Score Card System. RDS with its differentiated features can lock more market share in the country if it comes out with more generous policy like selection of people not on religions basis.

Economic Development of Bangladesh: The Role of IBBL

This paper presents the role of Islami Bank Bangladesh Limited (IBBL) to the recent economic development in Bangladesh. The study analyses published texts, articles, websites and annual report of this bank through a content analysis. Key findings of this study manifest the contribution of this bank in different areas of economic development in Bangladesh like generating employment, earning foreign remittance, strengthening rural economy, promoting ecology and green banking, boosting industrialization, developing the SMEs, assisting in foreign trade (import-export), developing the housing sector etc. This study also identifies IBBL’s significant contribution to the national exchequer. This paper contributes to the field of economic development of Bangladesh and the role of IBBL behind it and fills the gap of literature in this specific area.IIUC Studies Vol.9 December 2012: 323-334

Socio-economic Impact of IBBL Microfinance on Rural Women in a Selected District of Bangladesh

Aims: Rural Development Scheme (RDS) under Islami Bank Bangladesh Limited (IBBL) is an innovative typology of microfinance, envisaged to answer the need of rural poor. This study was planned to reveal the socioeconomic impact of RDS microfinance on the women beneficiaries in a selected district of Bangladesh. Place and Duration of the Study: This study was conducted in the district of Barisal. Data were collected from July to August, 2014. Methodology: This study was mainly based on primary information, however the secondary information was also collected to compare the before and after situation of loan withdrawal. To achieve study objectives data was collected from 206 randomly selected, RDS beneficiary women who engaged with the program for at least one year. Descriptive statistics such as mean, median, mode, standard deviation, etc., were used to describe the selected characteristics of the Original Research Article Jahan and Rashid; AJAEES, 6(3): 136-148, 2015; Article no.AJAEES.2015.071 137 respondents. Z-statistics was employed to compare the before and after situation of loan withdrawal. This study also used OLS regression to see the contribution of selected factor on the improvement of women beneficiaries. Results: The values Z statistics confirmed that highest change was taken place in social capital development followed by yearly income from non-agricultural sources, ownership of sanitary toilet, and ownership of tube-well. In case of social capital highest improvement was found in participation in family-decision making followed by self confidence, and consciousness about self-economic development. OLS regression confirmed that among the eight selected variables three variables, namely the number of earning members per family, the total amount of loan received, and yearly expenditure together can explain 46.5% variation in income growth. Conclusion: This study analyzed both monetary and social impacts of RDS microfinance and arrived at a general conclusion that this program grossly has a remarkable impact on selected socioeconomic aspects of the women clients.

Financial Performance Analysis of Islamic Banks in Bangladesh: A Case Study on Islami Bank Bangladesh Limited (IBBL)

Banking means deposit mobilization and deployment of those deposits into advances or investments in different sectors. The element of interest has been for long used as main instruments for deposit mobilization and the deployment of funds therefore.In the Muslim world, it remains a deep cry in peoples` hearts to fashion and design their economic lives in accordance with the percepts of Islam. It is committed to conduct all banking and investment activities on the basis of interest-free unveiled a new horizon and ushered in a new silver lining of hope towards materializing a long cherished dream of the people of Bangladesh for doing their Banking transitions in line with what is prescribed by Islam. That is why, considering the performance of IBBL, on attempt has been made in this paper to study the financial analysis procedure of IBBL.We have rendered our knowledge to present this study on all Performance of Islami Bank Bangladesh Limited. In this study, it is shown that various operational activities can be used in the evaluation of operation of this Bank. Considering the productivity ratio, current ratio quick ratio, profitability ratio,solvency ratio we can find that this bank is increasing its performance efficiency.

Eservice Quality For Customer Satisfaction Measurement: A Case Study On Islami Bank Bangladesh Ltd.

The purpose of the study is to identify customer satisfaction through e-service quality of Islami Bank Bangladesh Limited (IBBL). Buckley (2003:455) defines e-Service as the electronic provision of a service to customers whilst Santos (2003:234) describes e-service as the provision of consumers with a superior experience with respect to the interactive flow of information. The researchers used judgment sampling. Customers faced ATM service disorder, problems in using using sms banking services, prompt service from the bank. User-friendly, responsive online service experiences, educating customer how to use online service, training of employees will increase the e-service quality of IBBL in future. JEL Classification Code: M3

Investment Performance of Islamic Bank: An Empirical Study

The article undertakes an empirical study on investment of Islamic Bank. The aim of the study is to examine and evaluate the performance of investment of Islamic Bank for the time period 2005-2009 in comparison with a conventional Bank. Several financial ratios are applied for this purpose. For the empirical investigation data has been collected from Islami Bank Bangladesh Limited and Mutual Trust Bank Limited. The study found that Islami Bank Bangladesh Limited (IBBL) is relatively less profitable and less risky (more solvent) during 2005-2009 compared to a conventional bank (Mutual Trust Bank Limited), however, it is improving considerably over time indicating convergence with the performance of the conventional banks.

Rural Development Scheme ( RDS ) of the Islami Bank Bangladesh Limited ( IBBL ) Through the Lenses : An Analysis as an Alternative Microfinance Program

Rural Development Scheme ( RDS ) of the Islami Bank Bangladesh Limited ( IBBL ) Through the Lenses : An Analysis as an Alternative Microfinance Program

Impact of Rural Development Scheme of Islami Bank Bangladesh Limited on Beneficiaries in Mymensingh Sadar Area

The present study was conducted to assess the impact of investment provided under “Rural Development Scheme” (RDS) of the “Islami Bank Bangladesh Limited” (IBBL) on the basis of using data collected from 25 respondents of each of group of investors, agriculture and business of the five selected villages in sadar upazila of Mymensingh district. Total household annual incomes were Tk. 59696 and Tk. 87332 respectively for the agriculture group and business group. The beneficiaries have increased their income (61 percent in agriculture sector and 89 percent in business sector) by using RDS credit. After joining the RDS, there was a remarkable improvement in the living standard of the participant households. Thirty one percent of total credit received from RDS was utilized for agricultural purposes, 53 percent for business purposes and 15 percent for family expenditure on an average. Recovery rate of the current credit was 100 percent. None of the respondents of the group was allowed to have new credit until preceding credit was paid back. The findings suggest that the monitoring mechanism should be improved so that clients do not utilize their invested money to any unproductive activities. It is also suggested that adequate size of the investment has to be provided to pursue income generating activities properly.DOI: http://dx.doi.org/10.3329/pa.v19i2.16963 Progress. Agric. 19(2): 205 - 215, 2008

Comparison between Public and Private Pay Structures in Bangladesh

A survey was carried out during the period from July to December 2002 to see comparison between public and private pay structures in Bangladesh. To evaluate the public pay structure 120 respondents of Bangladesh Agricultural University (BAU) were interviewed through semi-structured questionnaire. The respondents were categorized in 8 different categories. Information of their monthly salary, income tax etc. were checked against their pay-bills and income tax information as supplier by the employer. The secondary data on also collected personally by researcher himselves Pay-structure of different organizations, National pay scales and Price indices. It was found that almost all employees including teachers and officers are facing constraints to maintain their families with income from their job. About 65.5% of their expenditure is getting from their salaries. More than 36% of the employees (including teachers and officers) failed to manage their family expenditure with income from job and extra job. National Pay scale 1997 reduced sufficiently the disparity between the highest and the lowest salary to 10:1 whereas in 1991 the ratio was 11.11:1. In private sectors like Pubali Bank Limited (PBL), Islami Bank Bangladesh Limited (IBL) and Uttara Bank Limited (UBL) the disparity between the highest and the lowest salary were found 21.1:1, 25.29:1 and 26:1 respectively. But disparity in NPS does not ensure the equity, fairness and justice to the civil servants or employees because salaries were not sufficient to cover the cost of as well as livelihood. The maximum salary one can draw is TK.23800 when a person is in the highest grade according to NPS 1997. On the other hand, in private organizations one can draw the highest amount of TK. 90500 which is more than 3.80 times of the highest amount drawn as per NPS 1997. House rent of private sectors varies from 65.4% to 104% (including house maintenance) where as in public sectors it varies from 40% to 55% of basic salary. Consequently, the living conditions of the service holders of lower income groups have been drastically reducing. The minimum salary ratio is to be suggested between the highest and the lowest position should be 5:1. DOI: http://dx.doi.org/10.3329/jsf.v8i1-2.14631 J. Sci. Foundation, 8(1&2): 89-96, June-December 2010

Impact of Brand Image and Brand Loyalty in Measuring Brand Equity of Islami Bank Bangladesh Ltd.

This paper aims at investigating the interrelation between brand image and brand loyalty in case of measuring brand equity of Islami Bank Bangladesh Ltd. Brand Image (BI) and Brand Loyalty (BL) have been considered as the most attributing features of Brand Equity. Handful of researches have resulted these two as primary factor (Latent Variable) of Brand Equity. With this association, this study is designed at conducting research for explaining intermediating role of BI and BL over Brand equity of Islami Bank Bangladesh Limited (IBBL) using Structured Equation Modeling (SEM). Specifically, to analyze the impact of observed variables over un-observed variable e.g. BI and BL we have used Confirmatory Factor Analysis. Only primary data was used for the study which was collected through structured questionnaire from a total number of 399 customers’ located in 43 branches of IBBL within Dhaka city. Simple Random Selection (SRS) was followed for sampling design. Findings of the study show that a positive correlation exists between BI and BL for IBBL. Moreover, strong influence of Brand Loyalty over Brand Equity was found that of Brand Image in case of IBBL. The model fit of the study strongly signify the result as successful estimate of the model.