||About ICB Islamic Bank
The Bank has been incorporated on April, 1987 as a public limited company under
the Companies Act, 1913 to undertake and carry out all kinds of banking,
financial and business activities, transactions and operations in strict
compliance with the principles of Islamic Law (Shariah) relating to business
activities in particular avoiding usury in credit and sales transactions
and any practice which amounts to usury. Certificate for commencement of
business has been issued to the bank on April, 30, 1987.
The Bank has been authorized by the Bangladesh Bank to carry on the banking
business in Bangladesh with effect from May 4, 1987. However, actual banking
operations commenced on May 20, 1987.
Nature of Business :
All kinds of commercial banking services are provided by the bank to the
customers observing the provisions of the Bank Company Act 1991, Bangladesh
Bank's directives and the principles of Islamic Shariah.
Accounting Polices Basis of Accounting :
The accompanying financial statements, comprising Balance Sheet, Profit and
Account and Notes thereto have been prepared according to Banking Companies Act,
1991 and Bangladesh Bank circulars applicable to accounts, on a going
concern basis, under historical cost convention and are based on generally
accepted accounting principles.
A separate set of records for consolidating the Statement of Affairs and Income
and Expenditure Statements of the branches are maintained at the Head Office of
the bank in Dhaka from which these financial statements are drawn up. Branch
managers of respective bank branches have certified the statement of affairs
for the year ended December 31, 2001.
Balance with other banks and exchange gains or losses :
Balances with foreign banks at year-end are translated at the average of
telegraphic transfer of buying and selling rates. Excess/shortage of translated
figures over book figures at year-end is transferred to Profit and Loss Account.
Investment are stated at amount as reduced by balance of Profit suspense account
and provision for bad and doubtful debts; Profit is not charged on bad and
doubtful investments from the date of filing money suits against the
borrowers; Income which were charged on Investment classified by Bangladesh Bank
Inspection Team and by the Bank management as sub-standard, doubtful and bad
were kept in profit suspense account as per Bangladesh Bank BCD Circulars
and such income is not accounted for as profit until realized from borrowers.