Upon the completion of my Economics degree, I joined University of Dhaka in 1974 as a lecturer in the department of economics. In 1978, I joined Bangladesh Bank (the Central Bank of Bangladesh) as deputy director of research until 2003. I did my postgraduate in Economics at Monash University, Australia in 1983.
As CEO, I am responsible for the company’s business strategies, facilitating formulation of the company’s policies, evaluating business performance and guiding the workforce. We work as a team. We have regular consultations and exchanges of views with the management team. In other words, participatory management practice makes my work easier.
Rearing an infant Shariah-based local financial company to a sustainable stage is my greatest achievement. Islamic Finance and Investment Limited is the first Shariah-based finance company in the country.
Unlike the conventional system, there are few products for both investment and deposits in Shariah finance. Our investment products lease is one of the best products followed by hire-purchase Sherkatul Melk. Deposit products like Monthly Profit Pay Mudarabah Term Deposit is most popular followed by the Pension Deposit Scheme.
Shariah compliance, transparency and prompt service are the main strengths of our business. People with Islamic values also prefer Islamic banks as opposed to finance companies.
Teamwork by dedicated and qualified personnel is the main factor contributing to the success of our company. Corporate governance is another big factor. Public support to the Islamic financial system is also an important driving force.
Banks in Bangladesh are allowed to do the business of finance companies. The cost of funding of a finance company is much higher than a bank. Therefore, the banks are providing loans/investment at lower interest/profit rates than finance companies, which causes unhealthy competition.
In next five years, I see a large portion of our national financial system coming under the umbrella of the Islamic finance industry. Islami Bank Bangladesh is the first Shariah-based bank, which started operations in 1983. Now there are seven fully Islamic banks out of 47, while 15 other conventional banks including two foreign banks have opened Islamic windows. Among these seven fully fledged Islamic banks, two have been converted into Islamic banks from interest-based banks. Within the next five years, Islamic finance will occupy about 30%-40% from its existing share of 20% of total financing in our country.
More competency in the Islamic finance industry.