Handbook-Islamic Banking in Pakistan

Top 20 FREQUENT WORDS

islamic 469 minimum 450 maximum 344 financing 307 limit 290 customers 255 tenors 248 mode 223 profit 222 target 220 underlying 219 banking 204 corporate 195 tenor 191 calculation 186 basis 176 security 159 sme 141 collateral 137 department 137

DOCUMENT KEY POINTS

the team name designation contact mister pervez said director pervez
pk miss fatima javaid regulating officer fatima

quaid e azam mohammad ali jinnah founder of islamic republic of pakistan on the occasion of the opening ceremony of the state bank of pakistan on july
we must work our destiny in our own way and present to the world an economic system based on true islamic concept of equality of manhood and social justice

no contents page introduction of islamic banking islamic banking branch network as on dec islamic banking products services products offered by full fledge islamic banks products offered by islamic banking branches of conventional banks important terms on islamic banking disclaimer the document is prepared for general information only
the information provided in this document is subject to change by the islamic banking institutions ibis and may not exactly match the ibi s prevailing policies and practices

the objectives resolution now a part of the constitution as well as principles of policy enunciated in the constitution also require to establish an order in pakistan w herein the muslims shall be enabled to order their lives in the individual and collective spheres in accordance with the teachings and requirements of islam as set out in the holy quran and sunnah
since its creation the people of pakistan have held the demand for elimination of riba from the financial system of pakistan on the basis of islamic precepts

description dec dec dec dec dec dec total assets age of banking industry
of branches including sub branches currently there are full fledge banks and conventional banks are offering islamic banking products through their islamic banking branches

islamic banking branch network as on dec type bank name no

musharaka a comprehensive range of islamic banking products and services is being offered in order to meet customer s demand of shariah compliant banking in the following areas i corporate sme banking i investment banking i trade finance i general banking i consumer banking islamic banking products have to be approved by the bank s shariah advisor as instructed vide ibd circular of
in order to ensure compliance with minimum shariah standards by the banks conducting islamic banking in pakistan the commission for transformation of financial system set up in the sbp approved essentials of islamic modes of financing

the industry over the years has managed to offer a wide array of products encompassing almost the entire range of islamic modes of financing that are able to cater to the needs of majority of the sectors of the economy

further a variety of other ancillary services are also being offered in a shariah compliant manner such as a c bonds guarantees a c letters of credit a c remittances local international a c online banking a c atm debit card including visa a c safe deposit lockers and a c utility bill payments etc
others some full fledged banks are also offering investment banking products and services including sukuk arrangement financial advisory private placement syndication trusteeship underwriting structured finance listing on capital markets project financing mergers acquisitions etc

million semi commercial upto million new upto rs million imported upto million minimum tenors years maximum tenors years target customers salaried individuals self employed professionals business individuals security collateral required exclusive ownership of the asset post dated cheques easy home underlying islamic mode diminishing musharaka type of product easy buyer easy builder easy renovate easy replace basis for pricing kibor days average of month kibor minimum financing limit in case of buyer builder replacement rs
million minimum tenors in case of buyer builder replacement years in case of renovation years maximum tenors in case of buyer builder replacement years in case of renovation years target customers salaried individuals self employed professionals business individuals islamic banking department

security collateral required owner occupied residential property land for home building

minimum financing limit n a maximum financing limit as per customer profile minimum tenors n a maximum tenors upto year target customers corporate sme commercial security collateral required hypo charge over fixed assets property etc
islamic banking department

saving account underlying islamic mode mudaraba acceptable currency pkr type of product checking minimum balance requirement if any na minimum tenor checking maximum tenor checking profit calculation monthly periodicity of profit calculation monthly target customers salaried persons housewives and other individual customers service charges leviable if any no islamic banking department
liability side products current account underlying islamic mode qard acceptable currency pkr type of product current checking minimum balance requirement if any na minimum tenor checking maximum tenor checking profit calculation no periodicity of profit calculation na target customers businessmen individuals service charges leviable if any no

karobari munafa account underlying islamic mode mudaraba acceptable currency pkr type of product saving minimum balance requirement if any rs

any minimum tenor months maximum tenor years profit calculation monthly periodicity of profit calculation monthly quarterly maturity target customers customers who wish to invest from short term to long term service charges leviable if any no islamic banking department

any minimum tenor years maximum tenor years profit calculation monthly maturity periodicity of profit calculation monthly maturity target customers corporate pension funds service charges leviable if any no monthly mudarabah certificate underlying islamic mode mudaraba acceptable currency pkr type of product term deposit minimum balance requirement if rs
any minimum tenor years maximum tenor years profit calculation monthly periodicity of profit calculation monthly target customers customers who wish to invest for long term

profit calculation monthly periodicity of profit calculation monthly target customers customers who have excess liquidity to invest for month service charges leviable if any no special musharaka certificate underlying islamic mode musharaka acceptable currency pkr type of product term deposit minimum balance requirement if rs
any minimum tenor no preset tenor maximum tenor as per maturity profit calculation maturity periodicity of profit calculation maturity target customers corporate financial institutions

ijarah financing office equipment consumer underlying islamic mode ijarah type of product consumer basis for pricing kibor based fixed and variable rates minimum financing limit as per prs and subject to bank s internal assessment for allocation of limit maximum financing limit as per prs and subject to bank s internal assessment for allocation of limit minimum tenors years maximum tenors years target customers customer falling under salaried selfemployed and businessmen categories for consumer financing

export murabaha murabaha finance fe underlying islamic mode murabaha type of product corporate sme basis for pricing current interbank foreign currency rate for export murabaha libor based current rates for murabaha finance minimum financing limit as per prs and subject to bank s internal assessment for allocation of limit maximum financing limit as per prs and subject to bank s internal assessment for allocation of limit minimum tenors days maximum tenors year islamic banking department
minimum financing limit as per prs and subject to bank s internal assessment for allocation of limit maximum financing limit as per prs and subject to bank s internal assessment for allocation of limit minimum tenors days maximum tenors year target customers all customers falling under corporate sme sector security collateral required cash collateral pledge mortgage or hypothecation of asset or as per prs or bank s requirement

import murabaha murabaha finance fe import underlying islamic mode murabaha type of product corporate sme basis for pricing current interbank foreign currency rate for export murabaha libor based current rates for murabaha finance minimum financing limit as per prs and subject to bank s internal assessment for allocation of limit maximum financing limit as per prs and subject to bank s internal assessment for allocation of limit minimum tenors days maximum tenors year target customers all customers falling under corporate sme sector security collateral required cash collateral pledge mortgage or hypothecation of asset or as per prs or bank s requirement
islamic export refinance scheme underlying islamic mode murabaha istisna musawama musharaka type of product corporate sme basis for pricing as per sbp refinance rate minimum financing limit as per prs and subject to bank s internal assessment for allocation of limit maximum financing limit as per prs and subject to bank s internal assessment for allocation of limit minimum tenors as per prs

commercial construction and purchase underlying islamic mode diminishing musharaka type of product corporate sme basis for pricing kibor minimum financing limit as per prs and subject to bank s internal assessment for allocation of limit maximum financing limit as per prs and subject to bank s internal assessment for allocation of limit minimum tenors no maximum tenors years islamic banking department
million minimum tenors years maximum tenors years target customers customers falling under salaried self employed and businessmen categories security collateral required properties are mortgaged in bank s favor personal guarantee or any other collateral

security collateral required murabaha shall be secured by way of hypothecation of items to the bank export musharaka underlying islamic mode musharaka type of product corporate basis for pricing kibor plus spread pre agreed ratio minimum financing limit as per prs and bank s internal assessment maximum financing limit as per prs and bank s internal assessment minimum tenors as per prs and bank s internal assessment islamic banking department
minimum tenors months maximum tenors years target customers customers falling under salaried self employed and businessmen categories for consumer financing

liability side product pls saving account local underlying islamic mode mudaraba acceptable currency pkr type of product term minimum balance requirement if na any minimum tenor days maximum tenor years profit calculation daily product basis periodicity of profit calculation half yearly target customers individuals organizations firms companies businesses service charges leviable if any no pls saving account foreign underlying islamic mode mudaraba acceptable currency euro usd gbp yen
profit calculation daily product basis periodicity of profit calculation half yearly target customers individuals organizations firms companies businesses service charges leviable if any no islamic banking department

periodicity of profit calculation half yearly target customers individuals organizations firms companies businesses service charges leviable if any no current account underlying islamic mode qard acceptable currency pkr euro usd gbp type of product current minimum balance requirement if na any minimum tenor na maximum tenor na profit calculation na periodicity of profit calculation na target customers individuals organizations firms companies businesses service charges leviable if any na term deposit underlying islamic mode mudaraba acceptable currency pkr type of product term islamic banking department
pls saving account local foreign underlying islamic mode mudaraba acceptable currency pkr euro usd gbp type of product saving minimum balance requirement if na any minimum tenor na maximum tenor na profit calculation on minimum monthly balance maintained

minimum balance requirement if na any minimum tenor years maximum tenor years profit calculation daily product basis periodicity of profit calculation at maturity half yearly target customers individuals organizations firms companies businesses service charges leviable if any na albaraka incentive account underlying islamic mode mudaraba acceptable currency pkr type of product saving minimum balance requirement if rs
any minimum tenor months maximum tenor years profit calculation daily product basis periodicity of profit calculation half yearly basis islamic banking department

million linked with bank s equity minimum tenors days maximum tenors days target customers corporate sme security collateral required cash margin equitable registered mortgaged pledge of stocks shares hypothecation charge on current assets ijara corporate underlying islamic mode ijara type of product corporate sme basis for pricing kibor minimum financing limit as approved by bank s credit committed maximum financing limit rs
bank islami pakistan limited asset side product murabaha underlying islamic mode murabaha type of product corporate sme basis for pricing kibor minimum financing limit as approved by bank s credit committed maximum financing limit rs

million linked with bank s equity minimum tenors years maximum tenors years target customers corporate sme security collateral required ownership of fixed asset security margin pgs islamic export refinance scheme underlying islamic mode musharaka and murabaha type of product corporate sme basis for pricing sbp iers rate plus bank s spread minimum financing limit as approved by bank s credit committed maximum financing limit rs
security collateral required ownership of the leased asset security margin pgs diminishing musharaka underlying islamic mode combination of shirkat ul milk and ijara type of product corporate sme basis for pricing kibor minimum financing limit as approved by bank s credit committed maximum financing limit rs

minimum financing limit rs

security collateral required ownership of leased vehicle security margin personal guarantee muskun housing finance underlying islamic mode diminishing musharaka ijarah type of product consumer basis for pricing kibor based minimum financing limit rs
minimum tenors years maximum tenors years target customers salaried individual businessmen corporate sme at present

any minimum tenor na maximum tenor na profit calculation daily product basis periodicity of profit calculation monthly target customers salaried individuals businesses corporate and sme service charges leviable if any no deposit charges
liability side products islami current account underlying islamic mode mudaraba acceptable currency pkr usd gbp eur and jpy type of product current minimum balance requirement if rs

any minimum tenor years premature withdrawal allowed maximum tenor years profit calculation monthly basis periodicity of profit calculation monthly target customers salaried individuals businesses corporate and sme service charges leviable if any no deposit charges
islamic mahana munafa account underlying islamic mode mudaraba acceptable currency pkr type of product term minimum balance requirement if rs

million minimum tenors new vehicle months used months maximum tenors new vehicle months used months target customers salaried self employed businessmen security collateral required security deposit post dated cheques and comprehensive takaful insurance finance against imported merchandise underlying islamic mode murabaha type of product corporate sme and investment banking basis for pricing depend on the credit worthiness of the client minimum financing limit no maximum financing limit as per prs minimum tenors no maximum tenors year target customers sme local corporate and blue chip co
emirates global islamic bank limted assets side products auto ijara underlying islamic mode ijara mbt type of product consumer basis for pricing fixed for initial year repricing will be possible with mutual consent thereafter minimum financing limit rs

murabaha finance local underlying islamic mode murabaha type of product corporate sme and investment banking basis for pricing depend on the credit worthiness of the client minimum financing limit no maximum financing limit as per prs minimum tenors no maximum tenors year target customers sme local corporate and blue chip cos
security collateral required pledge of commodity finance inclusive of margin hypothecation mortgage personal guarantee cash margin lien islamic banking department

direct ijarah financing underlying islamic mode ijarah type of product corporate sme and investment banking basis for pricing depend on the credit worthiness of the client minimum financing limit no maximum financing limit as per prs minimum tenors years maximum tenors year target customers sme local corporate and blue chip cos
security collateral required pledge of commodity finance inclusive of margin hypothecation mortgage personal guarantee cash margin lien etc

minimum financing limit as per prs maximum financing limit as per prs minimum tenors years maximum tenors years target customers age net disposable monthly income min
sale lease back ijarah financing underlying islamic mode ijarah type of product corporate sme and investment banking basis for pricing depends on the credit worthiness of respective customer

rahnuma travel services underlying islamic mode dayn type of product consumer finance basis for pricing no markup from customers on financing only principal will be recovered in equal monthly installments
bank in pakistan should not be in the default list

salam financing underlying islamic mode salam parallel salam type of product corporate sme agriculture commodity financing basis for pricing kibor market asset discounting minimum financing limit no maximum financing limit rs
million per party minimum tenors days maximum tenors days target customers corporate sme agriculture commercial security collateral required yes islamic banking department

for the entitlement of profit any minimum tenor na maximum tenor na profit calculation average monthly periodicity of profit calculation monthly target customers charity organizations service charges leviable if any na term deposit mudaraba underlying islamic mode mudaraba acceptable currency pkr type of product term deposit minimum balance requirement if rs
service charges leviable if any na charity account underlying islamic mode mudaraba same as saving account acceptable currency pkr type of product saving minimum balance requirement if rs

service charges leviable if any na basis banking account underlying islamic mode qard acceptable currency pkr type of product current account minimum balance requirement if nil any minimum tenor na maximum tenor na profit calculation na periodicity of profit calculation na target customers individuals only service charges leviable if any rs
if transactions exceeds in a month from deposit and withdrawals current account underlying islamic mode qard acceptable currency pkr usd gbp euro and jpy type of product current account minimum balance requirement if rs

rahnuma travel services underlying islamic mode mudarbah acceptable currency pkr type of product saving account minimum balance requirement if no minimum balance any minimum tenor nil maximum tenor nil profit calculation monthly average periodicity of profit calculation monthly target customers individuals years old service charges leviable if any rs
service charges leviable if any na foreign currency saving account mudarabah underlying islamic mode mudarabah acceptable currency usd gbp euro jpy type of product saving minimum balance requirement if usd gbp euro any jpy islamic banking department

service charges leviable if any nil uae dirham saving account underlying islamic mode mudaraba acceptable currency uae dirham type of product saving account minimum balance requirement if aed only for opening an any account minimum tenor nil maximum tenor nil profit calculation monthly average periodicity of profit calculation semi annually target customers individuals sole proprietors partnerships companies clubs societies
service charges leviable if any nil foreign currency term deposit mudarbah underlying islamic mode mudarabah acceptable currency usd gbp euro jpy type of product term deposit minimum balance requirement if us equivalent in other any currencies

maintaining minimum average monthly balance of uae dirham uae dirham current account underlying islamic mode qard loan acceptable currency uae dirham type of product current account minimum balance requirement if aed only for opening an any account minimum tenor nil maximum tenor nil profit calculation nil periodicity of profit calculation nil target customers individuals sole proprietors partnerships companies clubs societies etc
service charges leviable if any nil islamic banking department

dubai islamic bank limited asset side products murbaha for purchase order local underlying islamic mode murabaha type of product corporate commercial and sme basis for pricing cost plus mutually agreed profit

minimum financing limit as per prudential regulations maximum financing limit as per prudential regulations minimum tenors days maximum tenors days target customers import oriented industries security collateral required hypothecation of assets charge on current fixed assets or any other security deem necessary by the bank export finance underlying islamic mode wakala type of product corporate commercial and sme basis for pricing the wakala capital may be calculated as an amount net of the cushion for meeting the foreign bank charges and the bank s profit from the transaction on the basis of the number of days that the facility is being availed
basis for pricing the purchase of the goods the pre agreed profit either in lump sum or as a percentage of the cost flat or a benchmark to be calculated and finalized at the time of entering into the murabaha contract any other expenses directly related to the purchase of the goods subject of the murabaha such as the cost of shipment insurance transportation etc

for new used and reconditioned cars minimum tenors year new used reconditioned cars and light commercial vehicle maximum tenors new car years used reconditioned car years light commercial vehicle years target customers salaried self employed businessmen and self employed professionals security collateral required the vehicle itself which will be registered in the name of the customer but hypothecated in favour of the bank dubai islamic home finance underlying islamic mode musharaka and ijara type of product consumer financing basis for pricing floating rate based on kibor minimum financing limit rs
security collateral required hypothecation of assets charge on current fixed assets or any other security deem necessary by the bank dubain islamic auto finance underlying islamic mode musharaka cum ijara type of product consumer financing basis for pricing floating rate based on kibor minimum financing limit rs

security collateral required commodity murabaha underlying islamic mode commodity murabaha type of product treasury basis for pricing market based islamic banking department

liability side product dubai islamic current account underlying islamic mode wadiah acceptable currency pkr usd gbp jpy type of product current minimum balance requirement if rs

dubai islamic saving plus account underlying islamic mode mudaraba acceptable currency pkr type of product saving plus minimum balance requirement if none for priority banking its rs

any minimum tenor none maximum tenor none profit calculation daily product periodicity of profit calculation monthly target customers the primary target market for special savings account is rate sensitive sme institutional corporate high net worth individual with excess liquidity
service charges leviable if any as per schedule of charges islamic banking department

for current acoount any minimum tenor na maximum tenor na profit calculation na periodicity of profit calculation na target customers business industrialist and commercial organization financial institutions individuals service charges leviable if any as per schedule of charges saving account underlying islamic mode mudaraba acceptable currency pkr euro usd gbp type of product saving minimum balance requirement if rs
liability side products current account and bba underlying islamic mode qard acceptable currency pkr euro usd gbp type of product current bba minimum balance requirement if rs

any minimum tenor days maximum tenor years profit calculation on daily product basis periodicity of profit calculation monthly half yearly target customers business industrialist and commercial organization financial institutions individuals service charges leviable if any as per schedule of charges khushal saving plan for g
term deposit account underlying islamic mode mudaraba acceptable currency pkr euro usd gbp type of product term minimum balance requirement if rs

minimum tenors years maximum tenors years target customers individuals security collateral required title of the leased asset personal guarantee of applicant minimum security deposit of post dated cheques of rental amount islamic banking department

maximum financing limit maximum none or as permissible under the prudential regulations minimum tenors years maximum tenors years target customers mortgage of property being purchased
post dated cheques of rental amount alfalah musharaka homes underlying islamic mode diminishing musharakah type of product consumer basis for pricing year one currently pricing is fixed for st year as under a salaried individuals

alfalah salam finance underlying islamic mode salam type of product commodity financing basis for pricing as per terms of sanction minimum financing limit none or as permissable under the prudential regulations maximum financing limit none or as permissible under the prudential regulations minimum tenors as per terms of sanction maximum tenors as per terms of sanction target customers sme commercial and corporate entities security collateral required as per bank s credit policy
islamic banking department

any minimum tenor na maximum tenor na profit calculation average monthly basis periodicity of profit calculation six monthly basis target customers individuals businessmen housewives retirees sole proprieters associations public ltd companies semi govt
and autonomous bodies service charges leviable if any no riba free current account underlying islamic mode qard acceptable currency pkr usd gbp euro jpy type of product current minimum balance requirement if rs

any minimum tenor days maximum tenor years profit calculation on maturity and half yearly periodicity of profit calculation target customers individuals businessmen housewives retirees sole proprietors associations public ltd companies semi govt
riba free alfalah musharaka term deposit underlying islamic mode acceptable currency pkr usd gbp euro jpy type of product term minimum balance requirement if rs

a c steel a c rice a c plastic a c miscellaneous a c fertilizer a c food non perishables a c electronic a c construction security collateral required hypothecation of stock and receivable promissory notes and other related documents pledge and cash margin ijarah underlying islamic mode ijara mbt type of product corporate sme consumer basis for pricing linked with kibor and libor minimum financing limit no maximum financing limit as per prs
habib metropolitan bank limited asset side products murabaha underlying islamic mode murabaha type of product corporate sme consumer basis for pricing linked with kibor and libor minimum financing limit no maximum financing limit no minimum tenors days maximum tenors years target customers a c textile weaving spinning garments and towel etc

a c steel a c rice a c plastic a c miscellaneous a c fertilizer a c food non perishables a c electronic a c construction security collateral required a c security deposit minimum for consumers a c assets in banka s name a c hypothecation of stock and receivable a c insurance policy to cover the assets a c promissory notes and other related documents a c personal guarantees diminishing musharaka underlying islamic mode diminishing musharakah type of product corporate sme consumer basis for pricing linked with kibor and libor minimum financing limit a c minimum share of the consumer customer of the property value
limits are granted according to clients worthiness satisfactory collateral and with in overall meeting prudential regulation requirements maximum financing limit a c for consumer not more then million a c minimum share of the consumer customer of the property value

a c steel a c rice a c plastic a c miscellaneous a c fertilizer a c food non perishables a c electronic a c construction security collateral required a c assets in joint name a c hypothecation of stock and receivable a c insurance policy to cover the assets a c promissory notes and other related documents a c personal guarantees islamic banking department
satisfactory collateral and with in overall meeting prudential regulation requirements minimum tenors year maximum tenors years target customers a c a c textile weaving spinning garments and towel etc

service charges leviable if any stop payment cheque return special clearing duplicat statement etc current account underlying islamic mode qard acceptable currency pkr usd gbp euro type of product current minimum balance requirement if nil any minimum tenor na maximum tenor na profit calculation na periodicity of profit calculation na target customers individuals proprietors partnerships sme and corporate etc
service charges leviable if any stop payment cheque return special clearing duplicate statement etc islamic banking department

any minimum tenor days maximum tenor years profit calculation o profit are paid at maturity according to tenor of fdr hiic on the basis profit rate declared periodicity of profit calculation on maturity target customers individuals proprietors partnerships sme and corporate etc
fdr fixed deposit habib islamic investment certificate underlying islamic mode musharaka acceptable currency pkr usd gbp euro type of product term minimum balance requirement if rs

bank of khyber asset side products murabaha underlying islamic mode murabaha type of product financing for working capital requirements of sme corporate commodity operations and consumer basis for pricing currently ranging between to as per policy of the bank approved on case to case basis by competent authority subject to change as per profit rates market trend
minimum financing limit no maximum financing limit no minimum tenors month maximum tenors years target customers business community security collateral required as per sbpa s prudential regulations

khyber motor cycle ijarah scheme underlying islamic mode ijarah muntahia bitamleek type of product consumer for government employees basis for pricing currently ranging between to as per policy of the bank approved on case to case basis by competent authority subject to change as per profit islamic banking department
minimum financing limit no maximum financing limit no minimum tenors year maximum tenors five years in case of car ijarah and commercial ijarah three years in case of motorcycle ijarah and fifteen years in case of house ijarah facility

minimum financing limit no maximum financing limit no minimum tenors as agreed by parties depending upon project maximum tenors as agreed by parties depending upon project target customers business community security collateral required charge on projects diminishing musharaka underlying islamic mode diminishing musharaka type of product consumer sme corporate islamic banking department
personal guarantee of the customer musharaka underlying islamic mode musharaka type of product sme corporate

security collateral required charge on properties projects mudaraba financing underlying islamic mode mudaraba financing type of product consumer sme corporate basis for pricing actual sharing of profit minimum financing limit as per prs maximum financing limit as per prs minimum tenors depending upon project completion maximum tenors depending upon project completions target customers ngos reputed businessmen security collateral required as per underlying prs foreign currency remittances under islamic banking underlying islamic mode service charges type of product remittances basis for pricing percentage of remittances minimum financing limit nil islamic banking department
basis for pricing currently ranging between to as per policy of the bank approved on case to case basis by competent authority subject to change as per profit rates market trend

security collateral required nil foreign currency deposit under islamic banking underlying islamic mode qarz e hasana type of product deposits basis for pricing current account minimum financing limit nil maximum financing limit nil minimum tenors nil maximum tenors nil target customers starting from hayatabad branch where target market is the locan area businessman
it will soon be extended to other areas of the country

any minimum tenor months maximum tenor year profit calculation average daily product basis periodicity of profit calculation as per category target customers general public govt deposits service charges leviable if any na islamic banking department
riba free certificates underlying islamic mode musharaka acceptable currency pkr type of product saving minimum balance requirement if rs

royal bank of scotland asset side products islamic home finance underlying islamic mode diminishing musharaka type of product consumer home financing basis for pricing return is rent based

billion minimum tenors year maximum tenors year target customers large corporate mid tier companies and sme security collateral required underlying asset additional securities required on case to case basis sight letter of credit and usance letter of credit underlying islamic mode murabaha type of product corporate commercial sme basis for pricing non funded as per schedule of charges and discount if any from time to time
murabaha financing islamic medium long term financing facility for corporate sme customers underlying islamic mode diminishing musharaka type of product medium long term financing to corporate and sme customers basis for pricing return is rent based

for general banking minimum tenor no maximum tenor no profit calculation na periodicity of profit calculation na target customers individuals joint account holders local and foreign companies corporate trusts service charges leviable if any no islamic savings account underlying islamic mode hybrid of mudarabah and musharakah acceptable currency pak rupee type of product saving minimum balance requirement if rs
target customers corporate commercial sme clients security collateral required any security which is acceptable as per internal policies and local prudential laws in order to some murabaha financing

any minimum tenor month presently offering month but later will also offer month month year years etc maximum tenor month presently offering month but later will also offer month month year years etc profit calculation profit will be calculated on p l sharing basis on daily accruals
periodicity of profit calculation monthly target customers individuals joint account holders local and foreign companies corporate trusts service charges leviable if any no islamic term deposit underlying islamic mode hybrid of mudarabah and musharakah acceptable currency pak rupee type of product term minimum balance requirement if rs

periodicity of profit calculation six monthly target customers existing isalmic home finance customers service charges leviable if any no islamic home finance offset saving account underlying islamic mode hybrid of mudarabah and musharakah acceptable currency pkr type of product term minimum balance requirement if n a any minimum tenor months months and years maximum tenor months months and years profit calculation monthly periodicity of profit calculation monthly or maturity target customers individuals joint account holders local and foreign companies corporate trusts service charges leviable if any no
minimum tenor no maximum tenor no profit calculation profit will be calculated on p l sharing basis on daily product monthly

million minimum tenors year maximum tenors year target customers consumer security collateral required the vehicle islamic overdraft underlying islamic mode musharaka type of product financing basis for pricing profit sharing minimum financing limit depending on the customer s credit grade as per the bank s credit policy in line with sbp guidelines and circulars
islamic auto financing underlying islamic mode diminishing musharaka type of product consumer basis for pricing fixed minimum financing limit rs

security collateral required depending on the customer s credit grade as per the bank s credit policy in line with sbp guidelines and circulars

lc confirmation open silent underlying islamic mode kafalah type of product trade basis for pricing percentage based minimum financing limit n a maximum financing limit n a minimum tenors n a maximum tenors n a target customers corporate customer security collateral required letter of credit other securities islamic banking department
target customers corporate customers security collateral required depending on the customer s credit grade as per the bank s credit policy in line with sbp guidelines and circulars

any minimum tenor na maximum tenor na profit calculation na periodicity of profit calculation na target customers customers looking for shariah compliant financial facilities service charges leviable if any as per schedule of charges islamic saving account underlying islamic mode mudaraba acceptable currency pkr type of product saving minimum balance requirement if rs
liability side products islamic current account underlying islamic mode qard acceptable currency pkr type of product current minimum balance requirement if rs

any minimum tenor month maximum tenor month profit calculation monthly periodicity of profit calculation monthly target customers business industrialist and commercial organization financial institutions individuals service charges leviable if any as per schedule of charges saadiq payroll current account underlying islamic mode qarz acceptable currency pkr type of product current minimum balance requirement if zero any minimum tenor na maximum tenor na profit calculation na periodicity of profit calculation na target customers salaried individuals service charges leviable if any account maintenance fee is zero
islamic term account underlying islamic mode mudaraba acceptable currency pkr euro usd gbp type of product term minimum balance requirement if rs

saadiq payroll saving account underlying islamic mode mudaraba acceptable currency pkr type of product saving account minimum balance requirement if zero any minimum tenor na maximum tenor na profit calculation monthly periodicity of profit calculation six monthly target customers salaried individuals service charges leviable if any account maintenance fee is zero
however all other charges will be levied as per the islamic banking schedule of charges

in case of weak credit hbl may ask for additional security habib bank murabaha facility underlying islamic mode murabaha type of product corporate sme basis for pricing cost plus mutually agreed profit
million minimum tenors no maximum tenors year target customers small medium manufacturers and traders security collateral required hypothecation

diminishing musharaka underlying islamic mode diminishing musharaka type of product corporates basis for pricing floating rate option with kibor as a benchmark minimum financing limit rs
security collateral required asset itself however additional security may be required depending upon the risk rating of the customer

million minimum tenors day maximum tenors year target customers corporate sme security collateral required hypothecation charge over current fixed assets lien on assets pledge of stocks personal guarantee ijarah underlying islamic mode ijarah type of product corporate sme basis for pricing kibor plus margin minimum financing limit rs
bank alhabib limited asset side product murabaha underlying islamic mode murabaha type of product corporate sme commodity financing basis for pricing kibor plus margin minimum financing limit rs

maximum financing limit as per bank s party limit minimum tenors year maximum tenors years target customers corporate sme consumer security collateral required hypothecation lien over assets pledge of stock equitable mortgage pg
diminishing musharaka immovable movable property underlying islamic mode musharaka type of product corporate sme consumer basis for pricing kibor minimum financing limit rs

any minimum tenor days maximum tenor years profit calculation quarterly periodicity of profit calculation upon maturity target customers individuals corporate sme service charges leviable if any no islamic banking department
term deposit underlying islamic mode mudaraba acceptable currency pkr type of product term minimum balance requirement if rs

askari commercial bank asset side products murabaha underlying islamic mode murabaha type of product corporate and sme basis for pricing linked with kibor minimum financing limit no maximum financing limit as per prs minimum tenors working capital month fixed assets month maximum tenors working capital year fixed assets year target customers corporate commercial and sme security collateral required hypothecation charge on asset mortgage of property pledge
diminishing musharaka for commercial property underlying islamic mode diminishing musharaka type of product corporate commercial and sme basis for pricing linked with kibor minimum financing limit no maximum financing limit as per prs minimum tenors year maximum tenors years target customers corporate commercial and sme security collateral required mortgage of property charge on assets personal guarantee islamic banking department

diminishing musharaka for plant and machinery underlying islamic mode diminishing musharaka type of product corporate and sme basis for pricing linked with kibor minimum financing limit no maximum financing limit as per prs minimum tenors year maximum tenors years target customers corporate commercial and sme security collateral required mortgage of property charge on assets musharaka underlying islamic mode musharaka type of product corporate basis for pricing negotiated pre agreed profit sharing ratios different for tiered profit bands
minimum financing limit no maximum financing limit as per prs minimum tenors year maximum tenors years target customers real estate developers industrialist etc

islamic banking department

salam parallel salam underlying islamic mode salam parallel salam type of product corporate sme agriculture and consumer basis for pricing kibor minimum financing limit no maximum financing limit as per prs minimum tenors month maximum tenors years target customers corporate sme agriculture and consumer security collateral required mortgage of property charge on assets pledge of stocks etc
askari ijara bis sayyarah underlying islamic mode ijarah type of product consumer basis for pricing fixed rate for to years initial period fixed upto year variable thereafter using kibor minimum financing limit no maximum financing limit no minimum tenors years maximum tenors years target customers individuals security collateral required exclusive ownership of the vehicle islamic banking department

askari home musharaka underlying islamic mode diminishing musharaka istisna type of product consumer basis for pricing fixed for initial year variable thereafter using kibor minimum financing limit rs
million minimum tenors years maximum tenors years target customers individuals security collateral required mortgage of property islamic banking department

usd any minimum tenor na maximum tenor na profit calculation average monthly periodicity of profit calculation monthly target customers business enterprises and individuals service charges leviable if any no askari halal saving account underlying islamic mode mudarabah acceptable currency pkr type of product saving minimum balance requirement if rs
for profit application any minimum tenor n a maximum tenor n a profit calculation profit will be payable on minimum monthly balance from th till last date of each month

million any islamic banking department

any minimum tenor months maximum tenor years profit calculation monthly periodicity of profit calculation monthly quarterly and maturity target customers individuals business enterprises government entities service charges leviable if any na askari khas islamic deposit account akida underlying islamic mode mudaraba acceptable currency pkr type of product term minimum balance requirement if rs
askari islamic investment certificate aiic underlying islamic mode mudaraba acceptable currency pkr type of product term minimum balance requirement if rs

minimum balance requirement if rs any minimum tenor years maximum tenor years profit calculation monthly periodicity of profit calculation half yearly and at maturity target customers provident funds pensions funds and individuals service charges leviable if any na askari hala certificate of assan monthly mudaraba ahcamm underlying islamic mode mudaraba acceptable currency pkr type of product term minimum balance requirement if rs
million any minimum tenor na maximum tenor na profit calculation at maturity or as agreed with the client periodicity of profit calculation at maturity or as agreed with the client target customers large size deposits islamic banking department

million any minimum tenor na maximum tenor months profit calculation average monthly periodicity of profit calculation at maturity or as agreed with the client target customers large size deposits service charges leviable if any na ahsan masrafi certificate of islamic investment underlying islamic mode mudarabah acceptable currency pkr type of product certificate of investment for ifis minimum balance requirement if rs
million any minimum tenor one week maximum tenor one year profit calculation weekly two weeks monthly periodicity of profit calculation at maturity from one week to one month monthly from three months months target customers islamic financial institutions ifis service charges leviable if any n a ahsan munafa account askari halal savings and notice islamic banking department

exceptions will be approved on a case to case basis minimum tenors year maximum tenors years target customers the primary focus will be the small and medium enterprises smes as well as corporate and commercial clients security collateral required as a policy the bank will keep security deposit for all assets with the exception of computer hardware where the deposit will be
national bank of pakistan asset side products nbp ijarah underlying islamic mode ijara type of product corporate sme commercial basis for pricing kibor minimum financing limit nil maximum financing limit upto rs

exceptions will be approved on a case to case basis minimum tenors months maximum tenors year target customers the primary focus will be the small and medium enterprises smes as well as corporate and commercial clients security collateral required sold commodities may be accepted as collateral after consumption of sale islamic banking department
suitability revised if necessary for nd and rd years

any minimum tenor na maximum tenor na profit calculation na periodicity of profit calculation na target customers individuals sme corporate commercial
islamic pls saving account underlying islamic mode mudaraba acceptable currency pkr type of product saving account minimum balance requirement if indiv

minimum tenor one week one month three month six months one year to five year maximum tenor profit calculation daily product periodicity of profit calculation monthly quarterly annual target customers individuals sme corporate commercial
islamic term deposit account underlying islamic mode musharaka acceptable currency pkr type of product term deposit account minimum balance requirement if indiv

employees security collateral required none ameen commercial ijarah underlying islamic mode ijarah type of product corporate sme basis for pricing kibor minimum financing limit no limit maximum financing limit as per sbp s pr minimum tenors year maximum tenors years target customers multinational companies large local corporates public sector entities sole proprietor private limited companies
united bank limted asset side products ameen auto ijarah underlying islamic mode ijarah type of product consumer basis for pricing kibor minimum financing limit rs

ameen murabaha underlying islamic mode murabaha type of product corporate sme basis for pricing kibor minimum financing limit no limit maximum financing limit as per sbp s pr minimum tenors day maximum tenors years target customers multinational companies large local corporate public sector entities sole proprietor private limited companies
security collateral required mortgage pledge hypothecation p guarantees etc ameen commercial diminishing musharaka underlying islamic mode diminishing musharaka type of product commercial corporate basis for pricing kibor minimum financing limit rs

any minimum tenor na maximum tenor na profit calculation na periodicity of profit calculation na target customers individuals sole proprietorships partnerships corporate service charges leviable if any cheque book stop payment account statement etc ameen savings account underlying islamic mode mudaraba acceptable currency pak rupee type of product saving account minimum balance requirement if rs
liability side product ameen current account underlying islamic mode qarz acceptable currency pak rupee type of product current deposit minimum balance requirement if re

any minimum tenor month maximum tenor years profit calculation monthly periodicity of profit calculation profit paying at maturity annually half yearly and quarterly target customers individuals sole proprietorships partnerships corporate service charges leviable if any cheque book stop payment account statement etc islamic banking department
ameen certificate of islamic investment underlying islamic mode mudaraba acceptable currency pak rupee type of product term deposit minimum balance requirement if rs

mcb bank limited asset side products al makhraj car ijarah underlying islamic mode ijarah wa iqtina type of product consumer basis for pricing rentals can be fixed or variable linked with the bench mark having floor and cap minimum financing limit rs

charge lien on assets financed by mcb any other security or guarantee if deem necessary and relating charge documents to secure the asset and regular payment of rentals murabaha financing local foreign underlying islamic mode murabaha type of product sme consumer basis for pricing profit is allocated either on the basis of percentage over the cost or in lump sum by applying the method of profit on average investment based on payment schedule or terms of payment already agreed upon
al makhraj diminishing musharka equipment financing underlying islamic mode musharaka type of product sme corporate basis for pricing rentals can be fixed or variable linked with the bench mark having floor and cap rentals can be changed from time to time or at fixed intervals

or applicable export bill discounting rate quoted by treasury will be used the banka s profit is built in the buying and selling spread of the foreign currency assuming that the fx position in squared simultaneously minimum financing limit no maximum financing limit no minimum tenors no maximum tenors days islamic banking department
target customers small medium enterprises corporate clients security collateral required hypothecation or pledge of assets financed through mcb in accordance with the terms of sanctioned limit of the concerned customer

islamic export refinance scheme iers underlying islamic mode murabaha musawama type of product sme corporate basis for pricing islamic bank shall fix weight age for sharing profit by state bank of pakistan at the beginning of each month
minimum financing limit no maximum financing limit no minimum tenors no maximum tenors days target customers steady clients small medium enterprises corporate clients security collateral required lien on ee form

any minimum tenor month maximum tenor years profit calculation daily basis periodicity of profit calculation as per request of the client target customers individuals and short term investor service charges leviable if any na al makhraj savings account underlying islamic mode musharaka or other islamic mode of financing transactions acceptable currency pkr type of product saving minimum balance requirement if rs
any minimum tenor as per client preferences maximum tenor as per client preferences profit calculation daily basis periodicity of profit calculation monthly semi annually target customers individuals and short term investor service charges leviable if any na islamic banking department

any minimum tenor as per clients preference maximum tenor as per clients preference profit calculation na periodicity of profit calculation na target customers individuals corporate clients looking for riba free banking service charges leviable if any as per soc
ianat currrent account underlying islamic mode al wadiya acceptable currency pkr type of product current minimum balance requirement if rs

it is a contract under which the islamic bank finances equipment building or other facilities for the client against an agreed rental together with a unilateral undertaking by ijara wal iqtina the bank or the client that at the end of the lease period the ownership in the asset would be transferred to the lessee
literally it means transfer legally it is an agreement by which a debtor is freed from a debt by another becoming responsible for hawalah it or the transfer of a claim of a debt by shifting the responsibility from one person to another a contract of assignment of debt

legally qard means to give anything having value in the ownership of the other by way of virtue so that the latter could avail of the same for his benefit with the condition that same or qard loan of similar amount of that thing would be paid back on demand or at fungible objects the settled time

it refers to the practice of lending money for any length of time on the understanding that the borrower would return to the lender at the end of the period the amount originally lent together with an riba al nasiah increase on it in consideration of the lender having granted him time to pay
technically it means an increase over principal in a loan transaction or in exchange for a commodity riba accrued to the owner lender without giving an equivalent counter value or recompense a iwad in return to the other party every increase which is without an a iwad or equal counter value

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AlHuda Material\islamic banking

KeyWords

islamic risk murabaha minimum iifs NA customers financing customer banking profit credit maximum shariah underlying limit service corporate required mode

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Number of Pages

138

Published Date

2009-07-30 07:06:15

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Handbook-Islamic Banking in Pakistan

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