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Rural development scheme of Islami Bank Bangladesh Limited - A study on its growth, effectiveness and prospect in Bangladesh

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Author(s): Mohammad Saleh JAHUR | S. M. Nasrul QUADIR

Journal: Economia : Seria Management
ISSN 1454-0320

Volume: 13;
Issue: 2;
Start page: 283;
Date: 2010;
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Keywords: Rural Development Scheme | investment | income | deposits | members and IBBL

ABSTRACT
Most of the people of Bangladesh are living under poverty line. To alleviate poverty, thousands of NGOs and GOs have been working since the inception of the Bangladesh. But the success rate of these programs appears to be insignificant. Rural Development Scheme (RDS) being a shariah and teaching of Islam based technique has been introduced in order to graduate the rural poor from poverty trap by bringing them in the main stream of economy by providing micro-credit and teaching for value creation. The present study has been undertaken aiming at evaluating the effectiveness of the program and its prospect. It has collected both primary and secondary data, and analyzed these with the help of both financial and statistical techniques. The findings of the study are: the growth performance of RDS in important parameters are robust across study period, and RDS influence the income and income generating activities of borrowing members significantly. Finally the study has put forward some logical suggestions for enhancing the sustainability as well as robustness of the program.

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