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Global Islami Bank PLC

Overview of Global Islami Bank

Introduction

Global Islami Bank PLC, formerly known as NRB Global Bank, is a fourth generation Bangladeshi sharia compliant private bank founded in 2013. The bank is headquartered in Dhaka and has 1,001-5,000 employees. Nizam Chowdhury is the current chairperson and Syed Habib Hasnat is the managing director.

History and Rebranding GIB

NRB Global Bank was founded on July 25, 2013, targeting non-resident Bangladeshis.
In 2020, the bank provided both conventional and sharia compliant banking services.
In August 2020, the Bangladesh Financial Intelligence Unit ordered the freezing of accounts of the former managing director Proshanta Kumar Halder due to an embezzlement investigation.
On January 3, 2021, NRB Global Bank rebranded itself as Global Islami Bank and became a fully sharia compliant bank.
In June 2021, Bangladesh Bank approved the bank’s proposal to raise 42.5 billion taka from an IPO.

Current Status
Global Islami Bank PLC is listed on the Chittagong Stock Exchange with the trading code GIB and scrip code 22037.
As of 2022, the bank’s basic EPS was 1.02, net asset value per share was 13.79, and it paid a 5% cash and 5% stock dividend.
The bank’s SWIFT/BIC code is NGBLBDDHCTU.

Global Islami Bank’s registered office is located at Saiham Tower, House No:34, Road No:136, Block: S.E(C-1), Gulshan Model Town, Dhaka-1212

What are the main services offered by Global Islami Bank

Global Islami Bank Global Islami Bank offers a variety of banking services that align with Islamic finance principles. The main services include:

Consumer Banking

Deposit Accounts: Various savings and current accounts tailored for individual customers.
Investment Products: Options like Term Deposits and Monthly Profit Schemes (DPS) that comply with Islamic law.

Corporate Banking

Financing Solutions: Tailored financing options for businesses, including trade financing and working capital solutions.

Digital Banking

Internet Banking: Services like GoFast for online banking transactions.
Mobile Banking: Facilities for banking on mobile devices.

ATM and Card Services

ATM Services: Access to a network of ATMs for cash withdrawals and other banking needs.
Debit and Credit Cards: Issuance of sharia-compliant cards for transactions.

Agent Banking

Agent Banking Services: Facilitating banking services through authorized agents, especially in rural areas.

Other Services

Financial Statements: Providing access to financial documents and disclosures.
Customer Support: Assistance with card activation, PIN generation, and general inquiries.

PLC is a rapidly growing financial institution that operates according to Islamic principles. In an era where ethical banking is increasingly important, Global Islami Bank is making strides as a reliable, Sharia-compliant banking option. Whether you’re an individual looking to align your financial practices with your values or a business seeking Sharia-compliant financial services, this bank provides a robust and diverse range of offerings.

Islamic banking has gained prominence across the world due to its adherence to ethical principles and financial inclusivity. Global Islami Bank has emerged as a leader in this sector, helping individuals and businesses navigate finance in a way that avoids traditional interest-based (riba) banking practices. Let’s dive deeper into the core elements that make this bank stand out.

Islamic Banking Principles

Global Islami Bank, like other Islamic financial institutions, operates according to the principles of Islamic finance. These principles are derived from Sharia (Islamic law), and they prohibit the payment or receipt of interest (riba), ensuring that all financial transactions are based on profit and risk-sharing models.

One of the fundamental aspects of Islamic banking is the avoidance of unethical investments. Islamic banks do not engage in industries considered haram (forbidden), such as alcohol, gambling, or tobacco. This commitment to ethical investment has drawn many individuals and businesses looking for a more socially responsible banking option.

Products and Services Offered by Global Islami Bank

Personal Banking Services

Global Islami Bank offers a range of personal banking services designed to meet the financial needs of individual customers while adhering to Sharia principles. These include:

Islamic Savings Accounts: These accounts allow customers to deposit funds and earn returns based on profit-sharing agreements rather than traditional interest.
Islamic Current Accounts: Offering the flexibility of easy transactions, these accounts are ideal for day-to-day banking without involving interest.

Business and Corporate Banking

For businesses, Global Islami Bank provides an array of Sharia-compliant services, such as:

Sharia-Compliant Financing: This includes financing options for businesses that avoid interest-based transactions and focus on profit-and-loss sharing mechanisms.
Investment Opportunities: Businesses can invest in Sharia-approved sectors and funds, ensuring that all investments align with Islamic principles.

Digital Banking Solutions

Global Islami Bank is committed to offering seamless digital banking experiences. Through online and mobile banking platforms, customers can manage their accounts, transfer funds, and conduct transactions with ease, all while staying true to their values.

How Islamic Finance Differs from Conventional Banking

Islamic finance operates on a fundamentally different model from conventional banking. One of the key distinctions is the prohibition of interest (riba). Instead, banks like Global Islami Bank offer profit-and-loss sharing contracts, ensuring that financial transactions are fair and ethical.

Another distinguishing feature is risk-sharing. In Islamic banking, the bank and its clients share the risks and rewards of investments. This creates a balanced relationship, unlike conventional banking, where borrowers bear all the risk of losses, and banks are guaranteed returns through interest.

Key Benefits of Choosing Global Islami Bank

Choosing Global Islami Bank comes with numerous benefits, particularly for customers who prioritize ethical financial practices. These include:

Financial Inclusion: The bank makes it easy for all members of society to access banking services, including those who might avoid conventional banks due to religious reasons.
Community-Focused Investments: Global Islami Bank emphasizes investment in sectors that benefit the community, such as healthcare, education, and infrastructure.
Risk Mitigation for Customers: With the bank’s emphasis on shared risk, customers can feel more secure in their financial endeavors.

Global Islami Bank’s Digital Transformation

In today’s fast-paced digital world, Global Islami Bank is leveraging technology to enhance its customer experience. The bank’s online and mobile banking platforms provide users with easy access to their accounts, the ability to make real-time transactions, and manage finances on the go. The move toward digital banking not only increases convenience but also aligns with the bank’s mission of providing modern, ethical financial solutions.

Customer Service Excellence

Global Islami Bank has built a reputation for excellent customer service, focusing on personalized banking experiences. The bank offers a range of support options, including:

Personalized Banking: Customers are treated as individuals with unique needs, and the bank provides tailored solutions to meet those needs.
Innovations in Customer Support: With digital solutions like AI chatbots and round-the-clock support, customers can access assistance whenever they need it.

Corporate Social Responsibility (CSR) Initiatives

Global Islami Bank takes its social responsibilities seriously. As part of its CSR initiatives, the bank actively contributes to community development projects, such as:

Education and Healthcare: The bank allocates funds to improve educational facilities and healthcare services, ensuring that its profits contribute to societal growth.
Environmental Sustainability: The bank also invests in eco-friendly projects, helping to minimize the environmental impact of its operations.

Global Islami Bank’s Role in the Global Economy

As a leader in Islamic finance, Global Islami Bank has had a significant influence on the global economy. The bank continues to expand its operations into new markets, contributing to the growth of Islamic banking as a viable alternative to conventional banking systems, particularly in emerging markets where financial inclusion is needed most.

Challenges Faced by Global Islami Bank

Like all banks, Global Islami Bank faces its share of challenges. Regulatory hurdles and market competition are two significant areas that require constant attention. The bank must navigate the complex regulations governing Islamic finance while also competing with conventional banks that dominate the market.

Future Growth Prospects

Despite the challenges, Global Islami Bank’s future looks promising. The bank is focused on expanding its product offerings and entering new markets. Innovation in financial products, particularly in the areas of fintech and digital services, will likely play a significant role in its continued growth.

Partnerships and Collaborations

To strengthen its position, Global Islami Bank has formed strategic alliances with other financial institutions, both locally and internationally. These partnerships allow the bank to offer a wider range of services and tap into new markets.

The Role of Technology in Sharia-Compliant Banking

As technology continues to evolve, so does Islamic banking. Global Islami Bank is exploring fintech innovations, such as blockchain, to enhance transparency and efficiency in transactions. These advancements will help the bank remain at the forefront of the Islamic finance industry.

Conclusion

Global Islami Bank PLC stands out as a leader in the field of Islamic finance, providing a range of Sharia-compliant services that cater to both individuals and businesses. Through its commitment to ethical banking, digital innovation, and customer satisfaction, the bank has positioned itself as a key player in the global economy. As the demand for ethical banking grows, so too does the influence and reach of Global Islami Bank.

How does Global Islami Bank ensure compliance with Sharia principles?

Global Islami Bank ensures compliance with Sharia principles through a comprehensive governance structure and dedicated oversight mechanisms. Here are the key components of their Sharia compliance framework:

Sharia Supervisory Board

Composition: The bank has a strong Sharia Supervisory Board consisting of renowned Islamic scholars and experts in Islamic finance. This board is responsible for overseeing all banking activities to ensure they adhere to Sharia principle
Role: The board provides guidance on the development of products and services, ensuring that all operations align with Islamic law. They also review contracts and transactions to confirm compliance.

Education and Awareness

Customer Education: Global Islami Bank emphasizes educating its customers about Islamic banking principles, such as profit-sharing (Mudarabah) and cost-plus financing (Murabaha). They provide resources like articles and FAQs to enhance understanding
Employee Training: The bank conducts training programs for its staff to ensure they are well-versed in Sharia principles and can implement them effectively in their daily operations.

Compliance Monitoring

Sharia Audit and Inspection: Regular audits are conducted by the Sharia Supervisory Secretariat, which includes Sharia inspectors (Muraqibs) who monitor compliance across all branches. They assess whether banking activities conform to Sharia guidelines and report any non-compliance issues.
Annual Reporting: The Sharia Supervisory Committee submits an annual report detailing compliance status and any issues encountered, ensuring transparency and accountability to the bank’s board of directors.

Governance Framework

Board Responsibility: The board of directors is ultimately responsible for ensuring that the bank’s activities are compliant with Sharia. They work closely with the Sharia Supervisory Board to address any lapses or irregularities in compliance practices.

By implementing these measures, Global Islami Bank aims to maintain the integrity of its operations while promoting the principles of Islamic finance in its services.

FAQs

What Makes Islamic Banking Different from Conventional Banking?
- Islamic banking is based on principles of profit-and-loss sharing and prohibits interest (riba), making it more ethical and socially responsible.
How Can I Open an Account with Global Islami Bank?
- You can easily open an account by visiting one of their branches or through their digital banking platform, where you can follow the Sharia-compliant process.
What Sharia-Compliant Services Does Global Islami Bank Offer?
- The bank offers a wide range of services, including savings and current accounts, business financing, and investment opportunities, all compliant with Islamic principles.
Does Global Islami Bank Offer International Banking?
- Yes, the bank offers a variety of international banking services, ensuring that customers can manage their finances globally while adhering to Islamic principles.
What Are the Benefits of Islamic Finance for Businesses?
- Islamic finance offers businesses risk-sharing opportunities, ethical investment avenues, and access to Sharia-compliant funds, ensuring both financial growth and compliance with Islamic laws.