Islami Bank refutes media claims about poor state of Shariah banking
Islami Bank Bangladesh has refuted recent media reports that claimed Islamic banks were in a poor state.
"The information published about Shariah-based banks was an attempt to cast doubt on Islamic banking among the public," it said in a statement issued on Monday.
"Islami Bank, which holds the highest deposits in the country's banking sector, has distributed investments following the central bank's guidelines," the statement further reads.
The bank said, "We strongly protest against this misleading news and hope that the media will act more responsibly when reporting on a growing and trusted sector like Islamic banking."
According to the statement, media reports accusing Islamic banks of continuing aggressive lending were speculation. The bank also said it has not disbursed any new major investments in recent times.
The bank said in the statement that most of its investments are in agriculture and small and medium enterprises (SMEs), with SME investments accounting for 23% of the bank's total investments and 11% of the country's total SME investments.
It added that Islami Bank's investments in agriculture represent about 2% of its total investments and have a market share of 7.10%.
The bank also said the claims made regarding personnel recruitment were false. In the statement, it said probationary officers and field officers were hired following proper procedures. It said the bank hires staff based on its needs and follows standard human resource management practices.