Al-Arafah Islami Bank Limited

Al-Arafah Islami Bank is a Bangladesh-based Islamic commercial bank established on 27 September 1995. Its activities are structured around Shariah-based banking principles, with a Shariah council responsible for reviewing whether the bank's operations conform to those requirements. The institution is headquartered in Motijheel, Dhaka, one of Bangladesh's principal financial districts, and serves customers within the Bangladeshi market. The bank's business scope is centered on Islamic banking rather than conventional interest-based banking. Its offering is therefore understood to include deposit, investment, financing, remittance, payment, and other banking services arranged through Shariah-compliant structures. The available reference material does not provide a complete current product catalogue or detailed financial profile, so individual account names, branch numbers, assets, revenue, and market-share figures are not stated here. Its institutional identity is nevertheless clear: it combines the functions of a full-service commercial bank with governance and product principles associated with Islamic finance. A notable part of the bank's stated development role has been its Krishi O Grameen Khudra Biniog Prokolpa, or agricultural and rural microfinance project. The initiative was described as supporting poverty reduction, agricultural development, and employment creation. This places the bank not only in the retail and commercial banking segments but also in financial inclusion and rural-development activity. The project reflects a broader role for Islamic banks in Bangladesh, where banking services may be linked to small-enterprise finance, farming, and community-level economic participation. The bank experienced several leadership changes during the period covered by the reference material. Md Abdus Samad Sheikh served as managing director from 2005 and was reappointed in 2008. Board leadership later included Badiur Rahman, Md Enayet Ullah, Salim Rahman, Abu Naser Mohammad Yeahea, and Khwaja Shahriar at different points. In 2016, Abdus Samad, identified as vice-chairman of S. Alam Group, became chairman, while Mohammed Abdus Salam became vice-chairman. In 2017, Md Enayet Ullah became chairman and Salim Rahman became vice-chairman. Salim Rahman was elected chairman in 2021, with Abu Naser Mohammad Yeahea as vice-chairman. After the change of Bangladesh's national government in 2024, Bangladesh Bank dissolved the bank's board and appointed Khwaja Shahriar as chairman together with independent directors, according to the cited reference. Capital and liquidity events have also shaped the bank's recent story. In September 2010, it issued shares to meet Basel II capital requirements. In March 2022, it invested BDT 5 billion in Unique Hotel and Resorts Limited, and in August 2022 the Bangladesh Securities and Exchange Commission approved a request to raise BDT 5 billion through bonds. In January 2023, during a reported cash shortage, the bank borrowed BDT 750 million from Sonali Bank at a 9 percent interest rate. These transactions indicate the importance of regulatory capital, investment allocation, bond financing, and liquidity management to its operating position, although the supplied material does not establish the bank's current financial condition. Al-Arafah Islami Bank has also faced governance, security, and reputational issues. A security officer was killed during an attempted bank robbery in Chittagong in May 2015. In 2018, Bangladesh's Anti-Corruption Commission sued former chairman and director Badiur Rahman over an allegation that BDT 16.8 million had been transferred to Singapore in connection with Ariel Maritime (Pvt) Limited. The reference also describes litigation by S. Alam Group against a social-media critic who alleged embezzlement involving several banks, including Al-Arafah Islami Bank; the supplied material does not establish a final judicial outcome or the bank's liability. The bank donated BDT 40 million to the Ashrayan-2 Project, a government housing and rehabilitation initiative. Its current operational scale, present executive team beyond the specifically reported board changes, and detailed product portfolio require verification from current regulatory filings or the bank's official disclosures.

Al-Arafah Islami Bank was founded in Bangladesh on 27 September 1995 as a Shariah-based banking institution. From its headquarters in Motijheel, Dhaka, it developed as a domestic Islamic commercial bank serving the country's retail, business, agricultural, and community-finance needs. Its Shariah council provides religious and governance oversight intended to keep the bank's activities consistent with Islamic banking requirements. The bank's development included a rural and agricultural microfinance initiative known as Krishi O Grameen Khudra Biniyog Prokolpa. The project was presented as a means of helping reduce poverty, support agriculture, and create employment. It illustrates the institution's role in extending Islamic financial services beyond conventional urban banking and into smaller-scale economic activity. Md Abdus Samad Sheikh became managing director in 2005 and was reappointed in 2008. The bank later undertook a capital-raising exercise in September 2010 by issuing shares to meet Basel II requirements. In May 2015, a security officer was killed during an attempted robbery at a branch or facility in Chittagong, making bank security a significant event in its recorded history. Leadership changes became more prominent from 2016 onward. In May 2016, Abdus Samad, identified in the reference as vice-chairman of S. Alam Group, was elected chairman, while Mohammed Abdus Salam became vice-chairman. In May 2017, Md Enayet Ullah became chairman and Salim Rahman, managing director of KDS Group, became vice-chairman. In August 2021, Salim Rahman became chairman and Abu Naser Mohammad Yeahea became vice-chairman. The bank's governance record also attracted legal scrutiny. In June 2018, the Anti-Corruption Commission sued Badiur Rahman, a bank director and chairman from 2008 to 2016, alleging that BDT 16.8 million had been laundered to Singapore through Ariel Maritime (Pvt) Limited, a company established there. The supplied reference reports the allegation and filing but does not provide a final court judgment. Capital allocation and liquidity were important themes in the 2020s. In March 2022, the bank invested BDT 5 billion in Unique Hotel and Resorts Limited. In August of the same year, the Bangladesh Securities and Exchange Commission approved a request to raise BDT 5 billion through bonds. In January 2023, the bank reportedly borrowed BDT 750 million from Sonali Bank at a 9 percent interest rate after experiencing a cash shortage. The bank also donated BDT 40 million to the Ashrayan-2 Project, a government housing and rehabilitation program. The reference material further describes a dispute involving S. Alam Group and a Feni District insurance agent who had posted allegations on social media and on posters concerning embezzlement at banks associated with the group, including Al-Arafah Islami Bank. The group sued the agent under Bangladesh's Digital Security Act. The supplied material does not establish the outcome of that case or substantiate the allegations against the bank. Following the fall of the Sheikh Hasina-led Awami League government, Bangladesh Bank dissolved Al-Arafah Islami Bank's board and appointed Khwaja Shahriar as chairman together with independent directors. This represents the latest governance transition identified in the supplied reference. A current, fully verified account of the bank's management, ownership, financial condition, branch network, and detailed products would require consultation of its latest official and regulatory filings.

• 2024

  Board dissolved and independent directors appointed

  [1]Al-Arafah Islami Banken.wikipedia.org

  Bangladesh Bank dissolved the board and appointed Khwaja Shahriar as chairman with independent directors.

• 2023

  Liquidity borrowing from Sonali Bank

  [1]Al-Arafah Islami Banken.wikipedia.org

  The bank borrowed BDT 750 million from Sonali Bank after a reported cash shortage.

• 2022

  Investment and bond-financing activity

  [1]Al-Arafah Islami Banken.wikipedia.org

  The bank invested BDT 5 billion in Unique Hotel and Resorts and received approval to raise a further BDT 5 billion through bonds.

• 2015

  Security officer killed in robbery attempt

  [1]Al-Arafah Islami Banken.wikipedia.org

  A security officer was killed during an attempted robbery in Chittagong.

• 2010

  Shares issued for Basel II capital requirements

  [1]Al-Arafah Islami Banken.wikipedia.org

  The bank issued shares to raise funds intended to meet Basel II requirements.

• 2005

  Md Abdus Samad Sheikh appointed managing director

  [1]Al-Arafah Islami Banken.wikipedia.org

  Md Abdus Samad Sheikh became managing director of the bank.

• 1995

  Bank founded

  [1]Al-Arafah Islami Banken.wikipedia.org

  Al-Arafah Islami Bank was established in Bangladesh on 27 September 1995.

A Bangladesh-focused Islamic commercial bank combining Shariah-based banking governance with retail, corporate, agricultural, rural-development, and investment services.

• Agricultural and rural microfinance

  Krishi O Grameen Khudra Biniyog Prokolpa

  An agricultural and rural microfinance initiative intended to contribute to poverty reduction, agricultural development, and employment creation. The available reference does not provide detailed eligibility rules, financing structures, pricing, or current program status.

• Islamic banking · 1995

  Shariah-based banking services

  The bank's core offering consists of banking and investment services organized according to Islamic finance principles and reviewed through a Shariah council. Specific current account and financing product names are not identified in the supplied material.

• 2022

  Digital Security Act dispute involving allegations about associated banks

  S. Alam Group sued a Feni District insurance agent over social-media and poster allegations concerning alleged embezzlement involving several banks, including Al-Arafah Islami Bank. The reference does not establish the allegations or the legal outcome.

  Source

• 2018

  Anti-Corruption Commission case involving former chairman

  The Anti-Corruption Commission sued Badiur Rahman, a former chairman and bank director, alleging that BDT 16.8 million was laundered to Singapore through Ariel Maritime (Pvt) Limited. The supplied source does not report a final court outcome.

  Source

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• 2024

  Board reconstitution by Bangladesh BankStrategy

  Background

  Following the fall of the Sheikh Hasina-led Awami League government, Bangladesh Bank intervened in the bank's governance.

  Action taken

  It dissolved the board, appointed Khwaja Shahriar as chairman, and installed independent directors.

  Aftermath

  The change created a new governance structure; the supplied reference does not provide later operating or financial results.

  Source

• 2023

  Emergency borrowing from Sonali BankStrategy

  Background

  The bank reportedly faced a cash shortage.

  Action taken

  It borrowed BDT 750 million from Sonali Bank at a reported 9 percent interest rate.

  Aftermath

  The supplied material does not describe the duration of the borrowing or whether the liquidity pressure was resolved.

  Borrowing amount and reported interest rate. BDT 750 million at 9 percent (January 2023)

  Source

• 2022

  Investment in Unique Hotel and ResortsOther

  Background

  The bank allocated capital to an investment in Unique Hotel and Resorts Limited.

  Action taken

  It invested BDT 5 billion in the company.

  Investment amount. BDT 5 billion (March 2022)

  Source

• 2022

  Bond fundraising approvalOther

  Background

  The bank sought to raise funds through the capital market.

  Action taken

  The Bangladesh Securities and Exchange Commission approved a request to raise BDT 5 billion through bonds.

  Approved bond fundraising amount. BDT 5 billion (August 2022)

  Source

• 2010

  Share issuance for Basel II complianceStrategy

  Background

  The bank needed additional funds in connection with Basel II capital requirements.

  Action taken

  It issued shares to raise capital.

  Aftermath

  The supplied reference does not report the amount raised or subsequent capital ratios.

  Source

1. 1Al-Arafah Islami Banken.wikipedia.org
2. 2Al-Arafah Islami Bank official websiteal-arafahbank.com