Keywords: Islamic Banking; Investment; management, Profitability and Efficiency.


This study attempts to understand the level of efficiency of investment management of social Islami bank limited (SIBL). In this regards, different aspects (i.e., amount, ratio, profit and growth) of deposit, investment, investment modes and procedures are scrutinized thoroughly. To conduct the study, secondary data sources have been primarily used. Some information was also collected from officials over the phone. The study was based on five consecutive years i.e., 2015 to 2019.The major findings are that the ratio of investment deposit also remains as high as 90%. The bank invests more in Murabaha, Bai-Muazzal, HPSM and Quard. The ratio of classified investment to total investment increased 8.20% till 2017 and decrease to 6.63% up to 2019 whereas the ratio of unclassified investment decrease to 89.09% till 2017 and increase to 91.71% up to 2019. There has an increase of sub-standard and doubtful investments till 2017 and a decrease up to 2019. But in case of bad or loss investment, an upward trend has been observed till 2018 and had a negligible decrease in 2019. The last part of the analysis shows that the overall profit growth of investment fluctuated over years but remains positive i.e., 11.39%. In conclusion, the bank is moderately efficient in investment management.    

JEL Classification Codes: G11, G24, O16.

Author Biographies

Sanzida Tasnim, University of Dhaka, Bangladesh

Department of Management, Faculty of Business Studies, University of Dhaka, Bangladesh

Ariful Islam, Rabindra University, Bangladesh

Lecturer, Department of Economics, Faculty of Social Science, Rabindra University, Bangladesh (RUB), Shahzadpur, Sirajganj, Bangladesh


Ahmad, A. U. F., & Hassan, M. K. (2007). Regulation and performance of Islamic banking in Bangladesh. Thunderbird International Business Review, 49(2), 251-277.

Ahmed, S. F., & Malik, Q. A. (2015). Credit risk management and loan performance: Empirical investigation of micro finance banks of Pakistan. International Journal of Economics and Financial Issues, 5(2). Retrieved from

Akber, S. M., & Dey, A. (2020). Evaluation of the Financial Performance between Traditional Private Commercial Banks and Islamic Banks in Bangladesh. International Journal of Islamic Banking and Finance Research, 4(2), 1-10. 10.46281/ijibfr.v4i2.640 (2020). [online]. Retrieved November 25, 2020, from

Das, S. (2012). Categorization of loans and credit risk management of Trust bank limited. Retrieved from

Hamdi, F. M., & Zarai, M. A. (2013). Perspectives of earnings management in Islamic banking institutions. International Journal of Business and Management Invention, 2(9), 26-38. Retrieved from

Hossain, M. (2018). Credit Risk Management of Commercial Banks-a case on Bangladesh Development Bank Limited (BDBL). Retrieved from

Islam, K. M., Alam, M. B., & Hossain, M. M. (2019). Impact of Credit Risk Management on Bank Performance: Empirical Evidence from Bangladesh. South Asian Journal of Management, 26(2).

Lalon, R. M. (2015). Credit risk management (CRM) practices in commercial banks of Bangladesh: “A study on basic bank Ltd.”. International Journal of Economics, Finance and Management Sciences, 3(2), 78-90.

Mosharrafa, R. A. (2013). Credit Assessment Practice of a Commercial Bank in Bangladesh. International Journal of Economic, Finance and Management Sciences, 1 (6), 382-387.

Mtaki, F., & Ganesh, B. (2016). Loan management and risk practices in Banks. Retrieved from

Njeru, M., Mohhamed, S., & Wachira, M. A. (2017). Effectiveness of credit management system on loan performance of commercial banks in Kenya. International Journal of Finance and Accounting, 2(1), 106-122.

Noman, A. H. M., Pervin, S., Chowdhury, M. M., & Banna, H. (2015). The effect of credit risk on the banking profitability: A case on Bangladesh. Global journal of management and business research. Retrieved from

Olabamiji, O., & Michael, O. (2018). Credit management practices and bank performance: Evidence from First Bank. South Asian Journal of Social Studies and Economics, 1-10.

Poudel, R. P. S. (2012). The impact of credit risk management on financial performance of commercial banks in Nepal. International Journal of arts and commerce, 1(5), 9-15. Retrieved from

Rosenberg, E., & Gleit, A. (1994). Quantitative methods in credit management: a survey. Operations research, 42(4), 589-613.

Sabeza, F., Shukla, J., & Bajpai, G. (2015). Assessing Credit Risk Management Practices and Performance of Commercial Banks in Rwanda. International Journal of Social Science and Humanities Research. Kigali, 3, 323-333. Retrieved from

Sarker, M. A. A. (1999a). Islamic banking in Bangladesh: performance, problems, and prospects. International Journal of Islamic Financial Services, 1(3), 15-36. Retrieved from

Sarker, A. A. (2000b). Regulation of Islamic banking in Bangladesh: role of Bangladesh bank. International journal of Islamic financial services, 2(1), 67. Retrieved from Social Islami Bank Bangladesh Limited (SIBL) [online]. Retrieved December 05, 2020, from

Sufian, F., & Habibullah, M. S. (2009). Determinants of bank profitability in a developing economy: Empirical evidence from Bangladesh. Journal of business economics and management, 10(3), 207-217.

Suzuki, Y., & Uddin, S. S. (2016). Recent trends in Islamic banks’ lending modes in Bangladesh: An evaluation. Journal of Islamic Accounting and Business Research.

Swartz, N. P. (2013). Risk management in Islamic banking. African Journal of Business Management, 7(37), 3799-3809.

How to Cite
Tasnim, S., & Islam, A. (2021). PERFORMANCE OF INVESTMENT MANAGEMENT: A STUDY ON SOCIAL ISLAMI BANK LIMITED (SIBL). International Journal of Islamic Banking and Finance Research, 5(1), 42-59.
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper