The Bank was incorporated in Bangladesh in the year 1995 as a Bank Company under the Companies Act, 1994. As a fourth Islamic Bank in the private sector the Social Investment Bank Ltd. started its formal operation on November 22, 1995. All types of commercial banking services are provided by the Bank within the stipulations laid down by Bank Company Act, 1991 and directives as received from Bangladesh Bank from time to time. Besides as a matter of policy the Bank conducts its business on the principles of Mudaraba , Musharaka, Murabaha, Bai-Muazzal and Hire Purchase transaction approved by Bangladesh Bank. The Bank is one of the interest-free shariah based Banks in the country and its mouds‑operandi are substantially different from those of other commercial banks.

Social Investment Bank Limited started its journey with a concept of 21st century participatory three sector banking model. In the Formal sector, it functions as an Islamic Commercial Bank on the basis of profit and loss sharing; in the Non-formal banking sector, it involves in opening and introducing various savings and macro‑credit investment and custom-tailored group programs, designed for small entrepreneurs, marginal farmers, landless labourers, unemployed educated/semi-skilled people etc.; in the voluntary sector, the bank would, among others, involve in cash Waqf Certificate and development and management of WAQF and MOSQUE properties, and Trust funds & properties.