The Islamic banking sector in Bangladesh is currently undergoing its most significant transition since its inception in 1983. With a mix of dedicated Shariah-based banks and conventional banks offering powerful “Islamic Windows,” the choice for consumers has never been more diverse—or more complex.
This guide ranks the Top 10 Islamic Banking entities based on asset quality, deposit growth, digital innovation, and Shariah compliance.
1. Islami Bank Bangladesh PLC (IBBL)
Despite recent governance shifts and political transitions, IBBL remains the undisputed giant of Islamic finance in the country. It holds the largest share of the market with over 550+ branches.
- Best For: Massive physical network and international remittances.
- 2025 Status: After being freed from certain political influences in late 2024, it has seen a resurgence in deposit growth, ranking 2nd in the private sector for new deposits in early 2025.
2. Standard Chartered Saadiq
Standard Chartered Saadiq has emerged as the Best Islamic Bank in 2025 according to the Islamic Finance Awards.
- Best For: High-net-worth individuals and corporate clients.
- Why it ranks high: It pioneered the first multilateral risk participation in Islamic financing in Bangladesh and offers world-class digital onboarding for Shariah products.
3. Al-Arafah Islami Bank PLC
A pillar of stability in the sector, Al-Arafah is widely respected for its strict Shariah Supervisory Committee and focus on CMSME (Cottage, Micro, Small, and Medium Enterprise) financing.
- Best For: Small business owners and women entrepreneurs.
- Key Feature: Its “Islamic Wallet” is one of the most secure Shariah-based mobile financial services in the country.
4. Shahjalal Islami Bank PLC
Known for its high profitability and efficient management, Shahjalal Islami Bank consistently ranks well in terms of Return on Assets (ROA).
- Best For: Term deposits and investment profit sharing.
- 2025 Highlight: Strong performance in import/export financing, holding a resilient share of the nation’s trade receipts.
5. Sammilito Islami Bank PLC (The Consolidated Mega-Bank)
Formed in late 2025 by merging five banks (Exim, First Security, Global, Social, and Union), this state-backed entity is now one of the largest by asset size.
- Best For: Small depositors seeking government-backed security.
- Current Phase: It is in a “restructuring” phase, focusing on clearing defaulted loans and stabilizing customer withdrawals.
6. City Islamic (The City Bank PLC)
City Bank’s Islamic wing has seen explosive growth. By integrating Shariah services into its highly-rated “Citytouch” app, it has captured the tech-savvy urban demographic.
- Best For: Digital banking and premium Islamic Credit Cards.
- Status: It currently ranks among the top in Return on Equity (ROE) across the entire banking sector.
7. Pubali Bank PLC (Islamic Wing)
Pubali Bank has aggressively expanded its Islamic presence, converting many conventional branches into full-fledged Islamic branches in 2024–2025.
- Best For: Rural and sub-urban reach.
- Reach: With over 500 branches offering Islamic services via its online platform, it offers one of the most accessible Shariah-compliant networks.
8. EBL Islamic (Eastern Bank PLC)
Eastern Bank’s Islamic window is distinguished by its “no-compromise” Shariah ethics. They use a distinct Islamic core banking software to ensure funds are 100% segregated from conventional interests.
- Best For: Transparent profit distribution and ethical investment.
9. Dutch-Bangla Bank PLC (Islamic Banking)
DBBL continues to lead in financial inclusion. While famous for its ATM network, its Islamic wing is a top performer in deposit growth as of mid-2025.
- Best For: Salary accounts and student banking.
10. Dhaka Bank PLC (Tayyebah)
Under its brand “Tayyebah,” Dhaka Bank offers specialized liability and asset products. It is recognized for its “Tawfeer” Mudaraba schemes which offer competitive weightage-based profit sharing.
- Best For: Long-term pension schemes and savings bonds.
Comparison Table: 2025 Key Indicators
| Bank Name | Primary Strength | Digital Rating | Branch/ATM Access |
| IBBL | Market Reach | Medium | Very High |
| SC Saadiq | Innovation & Corporate | Excellent | Low |
| City Islamic | User Experience | Excellent | Medium |
| Al-Arafah | SME Focus | High | High |
| Sammilito | Govt Security | Improving | Very High |
Conclusion: Which Bank Should You Choose?
- If you want safety and security for a small deposit, Sammilito Islami Bank is the government-backed choice.
- If you want the best digital experience, City Islamic or Standard Chartered Saadiq are the leaders.
- If you are a business owner, Al-Arafah or Shahjalal Islami offer the best partnership models.
