Remittances sent by expatriates are contributing significantly to the development of Bangladesh. The amount of foreign exchange remitted by expatriates is half of the countrys total export earnings. Bangladesh Bank Reserve stood in a respectable position because of expatriates.
Remittances and export earnings are the two main sources of foreign exchange for a developing country like Bangladesh. Remittances are basically the income earned through expatriate fighters.
Remittances are said to be the lifeblood of the countrys economy and the basis of development, the golden platform of dreams and one of the driving forces of the economy. The contribution of remittances to the development of the country is 12 percent of the total GDP and the position of Bangladesh is seventh in the world.
According to the data published in the media, Islami Bank Bangladesh PLC (IBBPLC) created a new record by collecting remittances of $700 million or Tk. 77 billion in the month of January 2024 due to the trust and absolute love of expatriates. In the month of January, the remittance received by IBBPLC is about 35 percent of the total remittance received in the country and this amount is more than 50 percent among all Islamic banks. It is known that Bangladeshi expatriates in different countries have sent these remittances through IBBPLC during the month of January. As always, the private commercial bank Islami Bank was at the top of the trust and choice of expatriates last December. As a result, this Shariah-based bank has created a new history of collecting maximum remittances in a month by bringing expatriate income to the country. IBBPLC alone control about one-third of the countrys total remittance flows. In 2023, expatriates sent remittances of $5 billion through Islami banks, which is 23 percent of the countrys total remittances. Earlier in 2022, expatriates sent remittances of $4.65 billion and in 2021, $6.10 billion through this countrys largest bank to the country. Since its inception, IBBPLC has collected remittances of more than Tk 4.5 lakh crore.
IBBPLC started its operations in 1983 as the first interest-free bank in Bangladesh and South East Asia with various public and private initiatives and the strong role of the central bank. Since its inception, Islami Bank has achieved one success after another and is now at the top of the countrys banking sector. IBBPLC is one of the strengths of the national economy, holding the highest market share in almost all fields including deposits, investment, import-export, remittance collection, industrialization, entrepreneurship development, women empowerment. As a partner of national growth and development, IBBPLC is recognized as the best tax paying bank, the best small entrepreneur friendly bank and above all as the peoples bank. At the end of 2023, the total deposits of the bank were at Tk. 1.53 lakh crore, investment Tk. 1.50 lakh crore and customers 2.30 crore. As a whole, nearly one-third of the countrys total banking is now being conducted under the Islamic system, with the share increasing steadily.
Since its inception, Islami Bank has been dealing with foreign remittance business by setting up a separate unit at its local office in Dhaka. In 2007 its remittance processing hub was shifted from local offices to Head Office with special care and integrated internationally. "Foreign Remittance Service Division (FRSD)" under the International Trade Wing is uniquely recognized at home and abroad for its team of skilled officers, state-of-the-art and proprietary software. IBBPLC has international trade relations with 594 correspondent banks of the world. Currently Islami Bank has application programming interface integration with 155 banks and exchange houses. FRSD handles about one-third of Bangladeshs remittances, which continue to contribute to our foreign exchange reserves. Also, Islami Bank has been achieving the 1st position in terms of foreign remittance income of the country since 2007 till now and these achievements have been recognized by Bangladesh Bank and Government at various times.
It is known that on July 15, 2017, the agent of Islami Bank started banking operations. Although Islami Banks agent banking activity started a little late, it quickly spread across the country due to the trust and acceptance of customers. Islami Bank is providing modern banking services in 468 upazilas across the country through 2,773 agent banking outlets. As a result, beneficiaries of expatriates are able to easily withdraw remittances sent from abroad through the large network of Islamic banks. Remittance collection and agent banking of Islami Bank is at the top position in the country. In 2023, remittances of Tk 13,845 crore have come to customers through agent banking of Islami Bank, which is more than 60 percent of the remittances collected through agent banking in the country. On some days, the daily remittances are over Tk 120 crores. The agent banking system has created a great opportunity for grass root people to get banking services. So far 42.81 lakh accounts have been opened in Islami Banks agent outlets with deposits amounting to Tk 14,200 crore and expatriate remittances playing a major role.
Each branch of Islami Bank has remittance help desks to provide special services to expatriate clients and recently IBBPLC launched remittance lounge for expatriate customers and its beneficiaries. Through this, customers will be able to receive better and faster remittance services and there is a plan to introduce remittance lounges in all branches of the bank gradually. FRSD at head office is working tirelessly and monitoring all branches, sub-branches and agent outlets to ensure seamless remittance services. No negligence or laxity at branch level in disbursement of remittances is tolerated at all. Moreover, the banks call center is providing 24-hour service and advice to solve expatriate shortages, complaints and any problems.
At present, about 8 crore people of the country are directly and indirectly connected with Islami banks in various ways. The bank has branches, sub-branches and agent banking outlets spread across the country. There is no big market in the country, where Islami Banks are not present now. This has been possible due to the unlimited love and trust of people. Islami Bank is trusted to deliver money quickly and safely to the expatriates relatives through which the banks dedicated officers are working to provide 24-hour remittance services. Remittance beneficiaries can collect instant remittance through Islami Banks largest network of 394 branches, 249 sub-branches, 2773 agent banks and 2994 ATMs/CRMs in the country. In order to provide faster and better services to expatriates and their beneficiaries, the process of setting up remittance lounges in every branch of the bank is underway which will be completed very soon.
Islami Bank continues to make an important contribution to the foreign exchange reserves by collecting more than one-third of the countrys remittancesIn 2023, Islami Bank generated import and export trade and remittances of Tk 57,341 crore, Tk 33,807 crore and Tk 56,612 crore respectively. In the previous year in 2022, Islami Bank also collected import and export trade and remittances of Tk 75,404 crore, Tk 36,963 crore and Tk 45,697 crore respectively. Islami Bank operates through 29 representatives in UAE, Oman, Saudi Arabia, Qatar, Jordan and Singapore to collect remittances through legitimate channels.
IBBPLC was ranked as the only bank in Bangladesh in the list of top 1000 banks in the world in 2012 by the famous UK banking magazine The Banker. In this sequence, IBBPLC is in the list of top banks in the world for 12 consecutive times. Currently, the position of the bank is 882nd in this list. IBBPLC has won the Worlds Best Islamic Bank Cibafi Award. It has received various national and international recognitions including Tax Card Award 2022, ICSB Gold Award, ICMAB Best Corporate Gold Award.
Most of Bangladeshs expatriates work in the Middle East. Since there was no easy, safe and fast way to send money from these countries to Bangladesh, expatriates used to use illegal means. IBBPLC encourages people to send money through legitimate channels through regular exchange meetings with expatriates and special campaigns. The hard-earned money of expatriates is coming home safely. Investment is in sectors consistent with national development policies. IBBPLC gives special importance to expatriate remittance collection and expatriate services. Currently, 29 representatives of the bank are serving expatriates in Saudi Arabia, United Arab Emirates, Qatar, Oman, Jordan and Singapore. IBBPLC has international trade relations with 594 banks and financial institutions in 64 countries of the world. IBBPLC have agreements with 155 banks and exchange houses in 21 countries to repatriate the hard-earned income of expatriates through legitimate banking channels through which remittances from more than 200 countries are deposited as opportunists.
Apart from business management, the Islamic banking sector has made a significant contribution to the socio-economic development of the country in the last four decades. Through diversification of investments across the country, Islamic banks have directly created employment for about 1.20 crore people. Every year Islamic banks are depositing huge amount of money in the state treasury. In 2022, Islamic banks deposited about Tk. 6700 crore in the state treasury in the form of corporate tax, advance income tax, VAT, excise duty etc. IBBPLC has contributed significantly to the development of foreign exchange reserves. So far IBBPLC has contributed to the growth of foreign exchange reserves by depositing $12.50 billion with the central bank alone.
