Citizens Bank Islamic Banking

Shariah-Compliant Banking for a Better Financial Services

Citizens Bank PLC has received approval from Bangladesh Bank to conduct Islamic Banking operations through 05 (five) Islamic Banking Windows across the country, marking a significant milestone in the Bank’s journey toward providing Shariah-compliant financial solutions.

The Islamic Banking operation is supported by a dedicated Core Banking Software (CBS) and follows separate accounting, operational and fund-management arrangements to ensure proper segregation and transparency in Islamic Banking activities.

At Citizens Islamic Banking, we are firmly committed to the principles and values of Islamic Shariah. Our Islamic Banking operations are structured to avoid Riba (interest/usury) and other Shariah-prohibited elements, while offering customers financial products and services based on Shariah-approved modes and principles.

With Citizens Islamic Banking, we aspire to become a trusted financial partner for customers seeking Shariah-compliant banking solutions, contributing to financial inclusion and sustainable economic development while upholding the values of Islamic finance.

Objectives of Islamic Banking operation in Citizens Bank PLC:

• To provide banking services in accordance with the principles of Islamic Shariah.

• To promote inclusive banking by offering both conventional and Islamic services under the same institution.

• To enhance the Bank’s deposit base and investment portfolio through Shariah-based operations.

• To create win-win situation in all kinds of liability and investment-oriented transaction based on Islamic banking guidance.

• Relentless effort to upgrade the quality of service delivery under the Islami banking umbrella being in the form of profitability.

• Adoption and upgradation of technology and human resources as to be well experienced Islamic scholars and professionals.

• To make Islamic Banking services available across our branches by leveraging the online banking system.

• Ensuring the financial well-being of all our stakeholders and clients will be our foremost commitment.

• To strengthen Citizens Bank PLC’s position as a progressive and diversified financial institution.

Principles of Deposit

Citizens Islamic Banking accepts deposits based on Shariah-approved principles, ensuring that deposit products and related transactions are structured in accordance with Islamic principles. The Bank accepts deposits under the following two principles:

1. Al-Wadeeah principle
2. Mudaraba principle

1.Al-Wadeeah Principle:

Under Al-Wadeeah, the Bank acts as the custodian and trustee of the deposited funds. The Bank undertakes to repay the deposited amount in whole or in part upon the depositor’s demand subject to the applicable terms and conditions.

With the depositor’s permission, the Bank may utilize the funds at its own responsibility. The depositor does not participate in the profit or loss arising from such utilization. Applicable government taxes, fees and charges, if any, are borne by the depositor.

2.Mudaraba Principle:

Under Mudaraba, the depositor acts as Sahib al-Maal (Provider of Capital) and the Bank acts as Mudarib (Manager). The Bank utilizes the deposited funds in Shariah-compliant business and investment activities.

The profit generated is distributed between the depositor and the Bank according to a pre-agreed profit-sharing ratio, while any loss, in the absence of negligence or misconduct, is borne by the Sahib al-Maal.

Mudaraba deposits therefore provide a Shariah-based mechanism through which customers participate in the profit generated from the Bank’s Islamic investment activities.

Profit Distribution Mechanism

Citizens Islamic Banking follows a transparent and Shariah-compliant profit distribution mechanism for Mudaraba depositors based on the Weighted Average Method. Under this method, profit is distributed considering the amount and tenure of deposits, with different weightages assigned according to the nature and duration of each deposit category.

The profit distribution framework follows a two-tier mechanism. In the first tier, the Bank appropriates its management fee from the distributable funded income at a predetermined ratio, in accordance with the approved terms and Shariah principles. The remaining distributable income is then distributed among Mudaraba depositors based on the applicable weightages.

Accordingly, profit rates may vary across different deposit products and tenures, reflecting the respective weightages and actual distributable income.

Principles of Investment

Citizens Islamic Banking conducts investment activities in accordance with the principles of Shariah, ensuring that all investments are based on legitimate, ethical, and asset-backed economic activities. The Bank does not provide interest-based financing; rather, investments are structured through Shariah-approved modes such as Bai-Murabaha, HPSM, Musharaka, Bai-Salam, and Bai-Istisna, as applicable. Investments are made for permissible (Halal) purposes and are subject to proper assessment of the underlying asset, business activity, risk, and repayment capacity. The Bank maintains transparency, fairness, and mutual rights and obligations between the Bank and its customers throughout the investment process. All Islamic Banking investments are conducted under the supervision and guidance of the Bank’s Shariah Supervisory Committee and in compliance with applicable regulatory requirements.

Investment Products:

CZB Bank Islamic Banking offers the opportunity to expand the business of its clients in Shariah compliant way through its different investment products. CZB Islamic Banking is offering investment facilities in the following sectors:

To provide investment facility in the said sectors our Islamic Banking windows follow different Shari’ah compliant investment mood, sus as:

1. Bai-Murabaha.
2. Bai-Musharaka.
3. Hire Purchase Under Shirkatul Milk (HPSM).
4. Bai-Salam.
5. Bai-Istisna.
6. Withdrawal Facility.

Shari’ah Supervisory Committee (SSC) of CZB Islamic Banking:

CZB Islamic Banking has established an independent Shari’ah Supervisory Committee (SSC) comprising distinguished and experienced Islamic scholars with expertise in Fiqh and Islamic jurisprudence, in accordance with the applicable guidelines of Bangladesh Bank, including IBRPD Circular No. 01, dated 28.09.2025. The SSC provides Shari’ah guidance and oversight to ensure that the products, services, policies, processes, and operations of CZB Islamic Banking are conducted in accordance with the principles and requirements of Shari’ah.

All Islamic Banking products and services are subject to review and approval by the SSC, which also provides ongoing Shari’ah supervision and guidance. Details of the Chairman and Members of the Shari’ah Supervisory Committee are as follows:

Location & Contract of CZB Islamic Banking Windows:

CZB Bank PLC launched its Islamic Banking operations by introducing Islamic Banking Windows in its 5 (five) branches. The branches offering Islamic Banking services through these windows are as follows: