Deposit Schemes Analysis of Shahjalal Islami Bank Limited

Abstract

Shahjalal Islami Bank Limited is a private commercial bank in Bangladesh. It is an Islamic Shariah Bank conducting business activities based on Islamic law, principles and regulation. The objective of the study is to analyze the different deposit schemes of Shahjalal Islamic Bank Limited. I focused my analysis on various dimensions of deposits taken from the customers like Mudaraba saving deposit, term deposit, short-notice deposit, other scheme deposit, and Al- Waidah current deposit etc. The results indicate that the highest form of deposit generated from customers is coming under Mudaraba savings deposit, which is on average 36 percent of total deposit. The second largest category of deposit taken by the bank is Mudaraba term deposit, which is on an average 26 percent. The next highest form of deposit is Mudaraba scheme deposit which is about 20 percent of bank's total deposit. The analysis presents that Mudaraba Al-Wadiah current deposit, short-notice deposit, and foreign currency deposit are negligible and remain below 5 percent for the bank. On the basis of my analysis I can conclude that the management of Shahjalal Islami bank should device some strategies to increase its funds collection from these categories. It is also to mention that Shariah-based banking is gradually getting attention to capitalize the religious sentiment of major population.