Annual Report 2020 INVESTMENT ADVANCEMENT DEPOSITSDEPOSITS GDP GROWTH TRUST GDP SME REMITTANCE ENDEAVOUR PROGRESS Annual Report 2020 1 2 Annual Report 2020 Annual Report 2020 Annual Report 2020 3 Allah has permitted trading and forbidden (Riba) usury. Surah 2 Al-Bakara-275 6 Annual Report 2020 PAGE OF CONTENTS Qur’anic Verses on Interest 04 Hadith on Interest 05 Opinion of other Religions and Great Men on Interest 06 Board of Directors 07 Allah has permitted trading Executive Committee, Audit Committee, Shariah Supervisory Committee 08 Management Team 09 and forbidden (Riba) usury. Vision, Mission and Commitments 12 Corporate Information 13 Notice of the 26th Annual General Meeting 15 Surah 2 Al-Bakara-275 5 Year Financial Highlights 17 Economic Impact Report 18 Value Added Statements 19 Chairman’s Address 23 Managing Director’s Address 27 Directors’ Report 39 Compliance on the Corporate Governance Code 66 Report of the Shariah Supervisory Committee 83 Implementation Status of Code of Integrity under National Integrity Strategy 85 Report of the Board Audit Committee 87 Activities of the Board Risk Management Committee in the year 2020 89 CEO and CFO’s Declaration to the Board 90 Dividend Distribution Policy 2020 91 Disclosure of Unpaid or Unclaimed Dividend 92 Auditors’ Report & Financial Statements for the year 2020 93 Disclosures on Risk Based Capital (Basel-III) 169 Auditors’ Report on the Financial Statements of AIBL Capital Market Services Limited 2020 187 Auditors’ Report on the Financial Statements of AIBL Capital Management Limited 2020 209 Branches of AIBL 225 Proxy Form 233 Annual Report 2020 7 QUR’aNIC Verses on Interest I am seeking refuge in Allah from Shaitan, the outcast (the cursed one). In the Name of Allah, the Most Gracious, the Most Merciful. “Those who consume interest cannot stand (on the Day of Resurrection) except as one stands who is being beaten by Shaitan into insanity. That is because they say, ‘Trade is just like interest’ whereas Allah has permitted Trading and has forbidden (Riba) Usury. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to (dealing in interest) those are the companions of the Fire; they will abide eternally therein”. (Surah 2 Al-Bakara : 275) “O you who believe! Be afraid of Allah and give up what remains (due to you) from (Riba) Usury, if you are (really) believers. If you do not do it, then take a notice of war from Allah and His Massenger (Rasul)”. (Surah 2 Al-Bakara : 278-279) 4 Annual Report 2020 HADITH ON INTEREST • “Jabir bin Abdullah (R) said that Rasul (Allah’s Messenger) (S) cursed the acceptor of (Riba) Usury and its payer, and the one who records it, and the witness; and he said They are all equal. (Sahih Muslim) • Abdullah Ibn Masud (R) has quoted a Hadith of Rasul (Allah’s Messenger) (S) as saying: Whenever adultery and usury become rampant in a community, it is inevitable that wrath of Allah will befall upon them. (Abu Yala) • Abu Huraira (R) has narrated that Rasul (Allah’s Messenger) (S) said: Allah as his unique right will not allow four categories of people to enter the heaven and also refrain them from taking taste of his bounties 1) Drunkard 2) Usury 3) Devourers of orphan’s wealth and 4) Disobedience of parents. (Mustadarake Hakim) • Abu Huraira (R) has narrated that Rasul (Allah’s Messenger) (S) said: you should protect yourself from 7(seven) destructive issues ‘what are those’? -asked his companions. He said those are 1) Join in worship others with Allah 2) Mesmerizing 3) Killing someone unlawfully 4) Usury 5) Devourers of orphan’s wealth 6) Flight from the battle field and 7) To charge against chaste women. (Sahih Al-Bukhari, Sahih Muslim and Sunan Abu Daud) • Samura Ibn Zundub (R) has narrated that Rasul (Allah’s Messenger) (S) said: I saw in a dream that two persons came to me and took me to a sacred place. Thereafter three of us proceeded to a river full to blood and saw that a man was swimming in the river and another was standing on the bank with huge rocks in front of him. When the swimmer approached the bank, the man standing on it hit the swimmer with the rocks so heavily that he receded to his original place. Whenever the swimmer tried to approach the bank of the river again, the standing person did the same as before. Rasul (Allah’s Messenger) (S) asked ‘who is this man in the river’ One of the angels said ‘He is a usurer’. (Sahih Al-Bukhari) Annual Report 2020 5 OPINION of other Religions and Great Men on Interest • Interest has been banned in the two books of Hazrat Musa (A.), which are considered as the scriptures of Jews. The 22nd line of Exodus goes as saying, ‘If you lend money to a poor man, don’t become money lenders and don’t realize interest from him.’ • Similarly in 23rd line of ancient scripture of the Jews entitled “Deuteronomy” states, ‘You don’t lend money to your brother for interest -i.e interest on money, interest on foodstuff and interest on anything lent.’ • Hebrewism is known as Musaic or Jewism. Musaic laws or commands of Musa are the basis of Hebrewism. Interest was totally prohibited in Musaic law. This rule was exclusively practiced by the Jews. In this ideology, there are clear directions on interest as other aspects of economics. In Hinduism, usury business was restricted within the ‘Baithayas’. • One Jew couldn’t take interest by lending money from another. But, taking interest was in practice by lending money to the people of other religions. • Some writers quoted from the book, ‘Talmud’ that the Hebrew prophets forbade interest not only from Jews but from all. (Eric Roll, A history of Economic Thought: Page 48) • Interest was prohibited from the beginning of the Christianity to the advent of the Reform Movement and from the Church under pope in Rome to the division of other Churches, Christ said, ‘Lend hopping for nothing again.’ (Luke VI 35, Hanley: History of Economic Thought 1964, Page 101) 6 Annual Report 2020 BOARD OF DIRECTORS Chairman Alhajj Abdus Samad Labu Vice Chairman Alhajj Mohammad Abdus Salam Member Alhajj Nazmul Ahsan Khaled Alhajj Abdul Malek Mollah Hafez Alhajj Md. Enayet Ullah Alhajj Badiur Rahman Alhajj Ahamedul Hoque Alhajj Abu Naser Md. Yeahea Alhajj Niaz Ahmed Alhajj Mohammed Emadur Rahman Alhajj Engr. Kh. Mesbahuddin Ahmed Alhajj Mohammed Haroon Alhajj Liakat Ali Chowdhury Alhajj Salim Rahman Alhajj Md. Anowar Hossain Alhajj Md. Harun-ar-Rashid Khan (Nomine Director of China Builders and Machinaries Ltd.) Alhajj Md. Rafiqul Islam Alhajj Md. Amir Uddin PPM Alhajj M. Kamal Uddin Chowdhury Alhajj Mahbubul Alam Ex-Officio Director Managing Director & CEO Farman R. Chowdhury Company Secretary Md. Mahmudur Rahman Annual Report 2020 7 BOARD OF DIRECTORS Executive Committee (EC) Risk Management Committee (RMC) Chairman Chairman Alhajj Salim Rahman Alhajj Badiur Rahman Vice Chairman Member Hafez Alhajj Md. Enayet Ullah Alhajj Ahamedul Hoque Alhajj Engr. Kh. Mesbahuddin Ahmed Member Alhajj Md. Rafiqul Islam Alhajj Abu Naser Md. Yeahea Alhajj M. Kamal Uddin Chowdhury Alhajj Mohammad Abdus Salam Alhajj Liakat Ali Chowdhury Shariah Supervisory Committee Alhajj Md. Anowar Hossain Alhajj Md. Harun-ar-Rashid Khan Chairman (Nomine Director of China Builders and Machinaries Ltd.) Mufti Sayeed Ahmad Muzaddedi Board Audit Committee (BAC) Member Mufti Muinul Islam Chairman Mufti Shahed Rahmani Alhajj Mahbubul Alam Mohammad Abul Hossain Al-Azhari Mawlana Mohammad Abdul Hai Nadvi Member Al-Hajj A.Z.M.Shamsul Alam Alhajj Nazmul Ahsan Khaled Alhajj Abdus Samad Labu Alhajj Abdul Malek Mollah Alhajj Niaz Ahmed Secretary Alhajj Md. Amir Uddin PPM Md. Abdur Rahim Khan 8 Annual Report 2020 MANAGEMENT TEAM Senior Management Team Managing Director & CEO Deputy Managing Director Farman R. Chowdhury S. M. Jaffar Shabbir Ahmed Md. Shafiqur Rahman Syed Masodul Bari Md. Mahmudur Rahman Senior Executive Vice President Md. Obaydul Islam Md. Abdur Rob Md. Abdullah Al- Mamun Md. Soheb Ahmed Md. Nazim Uddin Abed Ahmed Khan Mohammad Azam Muazzem Hossain Md. Nadim Mohammad Ullah Kazi Mahmood Karim Senior Vice President Jalal Ahmed Md. Mujibul Quader A. K. M. Amzad Hossain Md. Majiber Rahaman Aktar Kamal Md. Sharif Uddin Pramanik Monir Ahammad Iqbal Hossain Ahmed Md. Salamat Ullah Executive Vice President Md. Golam Sarwar Md. Abdul Mobin M. Tariqul Islam Md. Zakir Hossain Bhuiya Md. Nazmul Huda Md. Abdur Rahim Duary M. A. S. Jalal Azad Mohammed Hossain Manir Ahmad Md. Masudur Rahman Md. Manjur Hasan Md. Sanaullah Vice President A. N. M. Mofidul Islam Md. Nizamul Hoque Chy. A. K. M. Sazzad Hossain Md. Aminul Islam Bhy. Md. Rajibul Islam Bhuiyan Md. Abdur Rahim Sarder Engineer Md. Habib Ullah Md. Yahya Md. Mizanur Rahman S. M. Kowsar Md. Mostafizur Rahman Md. Sultan Mahmud S. M. Abu Jafar Md. Showkat Islam Md. Abul Kalam Md. Monjurul Alam Md. Sharif Chowdhury C. G. M. Asaduzzaman Md. Asaduzzaman Bhuiyan Kamal Hossain Md. Shah Jalal Sheikh Md. Idris Ali Md. Zakir Hossain Md. Aminul Islam Md. Mazharul Islam M. M. Saiful Islam Masudur Rahman Khalifa Ishtiaq Ahmed Annual Report 2020 9 MANAGEMENT TEAM Md. Hablbullah Bahar Khandaker Nazmul Islam Md. Mahbubul Hoque Md. Mainul Islam Md. Amjad Hossain Md. Rafiqul Islam Mahbub Hasan Sharif Golam Kawsar Md. Mizanur Rahman Md. Asif Chowdhury Md. Shah Alam M.M. Shamsul Alam Md. Hashim Uddin Motahar Uddin Ahmed Md. Kamruzzaman Md. Lokmanur Rahman Mohd. Salahuddin Mamun A.S.M. Gouch Uddin Siddiquee Ashraf Hossain Md. Ashaduszzaman Md. Kamrul Islam Jashim Ahmed Chy Md. Kamrul Islam Md. Alauddin Md. Azmal Hoque Nur Mahbub Khan Syed Ariful Islam Md.