Project on Bank Al-Islami

Bank Al-Islami, Pakistan

Introduction:

Bank-Al Islami The Idea:

The epochal idea of Bank Al-Islami was conceptualized by Jahangir Siddiqui & Company Limited and DCD Group in late 2003. Mr. Hasan A. Bilgrami was appointed as Adviser to the sponsors on March 16, 2004 to formalize the idea. He presented the concept paper of Bank Al-Islami to sponsors on March 24, 2004. A detailed business plan was then prepared and a formal application was submitted to the State Bank of Pakistan on May 26, 2004. On September 26, 2005, Dubai Bank joined the Sponsors and became one of the founding shareholders of Bank Al-Islami by investing 18.75% in the total Capital.

Accreditation by State Bank of Pakistan:

The State Bank of Pakistan issued a No Objection Certificate in no time on August 19, 2004 and Bank Al-Islami Pakistan Limited, the second full-fledge Islamic Commercial Bank in Pakistan, was incorporated on October 18, 2004 in Pakistan.

Bank Al-Islami Pakistan Limited was the first Bank to receive the Islamic Banking license under the Islamic Banking policy of 2003 on March 31, 2005. The Bank envisioned to focus primarily on Wealth Management as the core area of business in addition to Shariah compliant Retail Banking products, Proprietary and Third party products, and Integrated financial planning services.

Initial Public Offering of Bank-Al Islami:

Bank Al-Islami Pakistan Limited made a public offering of Rs. 400 Million, at par, from 6th to 8th March. This was the first primary issue by a Bank in over a decade in Pakistan. The Initial public offering (IPO) of Bank Al-Islami received overwhelming response from the general public as the applications received were 9 times higher than offered, fetching nearly Rs. 3.5 Billion, against the demand of Rs. 400 Million.

Inauguration and Network Expansion:

The State Bank of Pakistan declared Bank Al-Islami Pakistan Limited as a Scheduled Bank with effect from March 17, 2006. Bank Al-Islami started its Banking operations on 7th April 2006 with its first branch in SITE, Karachi. By the end of 2006, the Bank had

International Islamic University Islamabad. 1


10 branches, nine in Karachi and one in Quetta. The Bank further concentrated in building a nationwide network and by the end of year 2007, its branch network grew to 36 branches in 23 cities. In 2008, the Bank opened 66 new branches nationwide which expanded its network to 102 branches in 49 cites. This gives Bank Al-Islami the distinction of having the fastest expanding network in Pakistan as well as offering the widest network by any Islamic Bank in Pakistan.

Milestones:

2004:24 March 2004 Concept paper of Islamic Bank presented to Sponsors; JS Group and DCD Group26 May 2004 Application for the license of an Islamic Bank was submitted to SBP19 August 2004 Bank Al-Islami received the No Objection Certificate from SBP18 October 2004 Bank Al-Islami became a legal entity after SECP granted it an incorporation certificate

2005:31 March 2005 SBP Governor, Dr. Ishrat Hussain issued Islamic Banking license to Bank Al-Islami26 September 2005

Dubai Bank became founding shareholder of Bank Al-Islami by investing 18.75% in the total Capital

2006:

26 February 2006 Bank Al-Islami share debuted on the Karachi Stock Exchange6 March 2006 Bank Al-Islami's three day Initial Public Offering (IPO) was initiated and got

oversubscribed by 9 times17 March 2006 State Bank of Pakistan declared Bank Al-Islami Pakistan Limited as a Scheduled

Bank7 April 2006 Bank Al-Islami started commercial operations from its 1st branch at SITE, Karachi7 April 2006 Bank Al-Islami became the First bank in Pakistan & Asia and the Second Bank in

the World to install BIOMETRIC ATM7 April 2006 Bank Al-Islami became the First bank in Pakistan to launch Internet banking from

start of operations28 April 2006 Bank Al-Islami's second and third branch opened simultaneously in Clifton and

Korangi Industrial Area in Karachi9 June 2006 The Fourth branch of Bank Al-Islami located on 26th Street of Phase V, D.H.A

opened its doors for customers



7 July 2006 The official inauguration of Bank Al-Islami was conducted at the Governor House, Sindh

14 July 2006 Bank Al-Islami's Shaheed -e- Millat branch located at Adam Arcade, BMCHS, Shaheed-e-Millat Road, Karachi starts operations

31 August 2006 State Bank's Director of Islamic Banking, Mr. Pervez Said inaugurated the induction ceremony of the first Trainee Officers batch of Bank Al-Islami

4 September 2006 Phone Banking services were launched by Bank Al-Islami8 September 2006 Sixth branch of Bank Al-Islami opened on Rashid Minhas Road, Karachi8 December 2006 Bank Al-Islami's North Nazimabad branch started operations. It was the 7th branch

opened by the Bank15 December 2006 Bank Al-Islami formally inaugurated its eighth branch located in Gulshan-e-Maymar22 December 2006 Bank Al-Islami went nationwide with the opening of its 9th branch on Jinnah Road,

Quetta. This was Bank Al-Islami's first branch outside Karachi

2007:

3 March 2007 Bank Al-Islami signed ORIX network for its '1 Card'30 April 2007 Bank Al-Islami became the first Bank in Pakistan to sign contract with Haydrian for

'XM3", a state of the art Anti Money Laundering (AML) software

3 May 2007 Bank Al-Islami launched home financing product "MUSKUN"11 May 2007 Bank Al-Islami's Islamabad branch opened in Blue Area, Islamabad25 May 2007 Wah Cantt Branch of Bank Al-Islami was opened15 June 2007 Karachi Stock Exchange Branch of Bank Al-Islami was opened21 June 2007 Bank Al-Islami signed agreement for a state of art Shariah compliant Banking system

software "iMAL" with Path solutions

29 June 2007 Mirpur (Azad Kashmir) Branch of Bank Al-Islami was opened6 July 2007 Bank Al-Islami deployed its Deposit ATM machine. Based on GBNA technology, the

ATM is capable of accepting 100 notes at a time

18 August 2007 Bank Al-Islami bought JS Finance Limited, a Modaraba management company and renamed it as Bank Al-Islami Modaraba Investments Limited

31 August 2007 Bank Al-Islami opened its branch in Lahore. This was the 15th Branch of Bank Al-Islami and its first in Lahore

7 September 2007 16th branch of Bank Al-Islami opened in Jodia Bazar, Karachi25 September 2007

Bank Al-Islami completed its First Investment Banking transaction by issuing privately placed SUKUK of Rs. 1.2 Billion for PEL

16 November 2007 17th branch of Bank Al-Islami opened in Pishin



26 November 2007 18th branch of Bank Al-Islami opened in Sukkur28 November 2007 19th branch of Bank Al-Islami opened in DHA, Lahore2 December 2007 21st branch of Bank Al-Islami opened in Hyderabad3 December 2007 20th branch of Bank Al-Islami opened in Chaman10 December 2007 Bank Al-Islami led managed a Consortium to successfully achieved the financial close

of a landmark Investment Banking deal of SSGC Sukuk of Rs. 5 Billion

18 December 2007 22nd branch of Bank Al-Islami opened in Muslim Bagh18 December 2007 23rd branch of Bank Al-Islami opened in Qila Saifullah19 December 2007 24th branch of Bank Al-Islami opened at Cloth Market, Karachi24 December 2007 25th branch of Bank Al-Islami opened in Multan26 December 2007 26th branch of Bank Al-Islami opened at Bank Square Road, Larkana27 December 2007 27th branch of Bank Al-Islami opened in Faisalabad31 December 2007 Nine branches of Bank Al-Islami opened in different cities of Pakistan. The branch

network grew to 36 branches in 23 Cities of Pakistan

2008:

13 February 2008 Bank Al-Islami's branch network expansion plan of opening 30 branches and 32 sub branches in 2008 approved by State Bank of Pakistan

14 February 2008 Bank Al-Islami installed the first ever ATM in an Islamic School at Darul Uloom, Karachi

22 August 2008 37th branch of Bank Al-Islami opened at DHA, Phase IV, Karachi29 August 2008 Bank Al-Islami's Response to Fatwa against Islamic Banking. (Download)27 August 2008 Bank Al-Islami posted an operating profit of Rs. 19.210mn in 2nd quarter of 200827 August 2008 Bank Al-Islami announces right issue of 23.36% subject to SECP approval.12 September 2008

38th branch of Bank Al-Islami opens on UP More Road, Karachi

26 September 2008

Bank Al-Islami opens branches at Kotli, Islamgarh and Sharea-e-Faisal Road, Karachi.

17 October 2008 Bank Al-Islami opens its sub branch in Shadman Town No.1, North Nazimabad Karachi.

18 October 2008 Sub Branch of Bank Al-Islami opens in Khyber Bazar, Peshawar31 October 2008 Bank Al-Islami opened its 50th Branch today. It has been the fastest growth by any

Bank in Pakistan.31 October 2008 Bank Al-Islami opens seven new branches nationwide.November 1 2008 Bank Al-Islami crosses 50 branches mark by opening its branch at Nazimabad Block

A Karachi.



November 30 2008 Bank Al-Islami opens ten Online branches this month.December 5 2008 Bank Al-Islami signs strategic cooperation with Pak Qatar Takaful Company for

Takaful cover to Bank Al-Islami Auto Ijarah customers.December 31 2008 Bank Al-Islami ceates history by becoming the first bank to open 100 plus branches in

less than three years and with this complete its yearly expansion plan of reaching to 102 Online branches in 49 cities nationwide.

2009:

4th Nov 2009 Bank Al-Islami crosses 100,000 customer base31st July 2009 Bank Al-Islami sign NDA with Citibank for Auto Financing Portfolio2nd July 2009 PACRA upgrades entity rating of Bank Al-Islami Pakistan LImited.March 31 2009 Bank Al-Islami witnesses phenomenal increase of 32% in Deposits and 39% increase

in Customer base over the same period last year.

2010:

2010 Successful Deployment in all branches of iMal, World's #1 Islamic Banking software31st Dec 2010 BIPL reports profit of Rs. 46.55 mn for the year ending December 31, 2011.27th December 2010:

Bank Al-Islami signs deal for acquisition of CitiBank House Financing Portfolio

2011:

August 2011 Visa Debit Cards launched

Our Vision: The Vision of Bank Al-Islami is to be recognized as the leading Authentic Islamic Bank.



Our Mission: The Mission of Bank Al-Islami is to create value for our stakeholders by offering Authentic, Shariah Compliant and technologically advanced product and services. We differentiate ourselves through:

Authenticity Innovation Understanding our client's needs Commitment to excellence, and Fast, efficient and seamless delivery of solution. As a growing institution, the

foundation for our performance lies on our human capital and Bank Al-Islami remains committed to becoming an employer of choice, attracting, nurturing and developing talent in a transparent and performance driven culture.

Our Core Values: Bank Al-Islami is strongly committed towards its core values of:

Product authenticity Customer focus Meritocracy Integrity Team work Humility Innovation

Financial Highlights:

Amounts in Rs. Million (otherwise specified)

2006 2007 2008 2009 2010 2011



Total deposits 1,778

9,934

12,478

27,987

38,198

50,568

Total assets 4,025

14,446

19,085

34,272

45,036

58,821

Total financing 959

3,931

6,343

10,457

16,670

20,110

Total Investment 412

3,864

5,020

6,813

13,732

21,067

Financing to Deposit ratio

54% 40% 51% 37% 44% 40%

Return on Assets -0.21% -0.27% -0.29% -1.43% 0.10% 0.70%

Return on Equity -0.42% -1.00% -1.07% -10.37% 0.98% 7.71%

Earning per share -0.04 -0.12 -0.11 -0.93 0.09 0.78

No of BRANCHES 10 36 102 102 102 102



Organizational Structure:



The Shariah Board:

The Shariah Board of Bank Al-Islami consists of three renowned and distinguished Shariah scholars namely Justice (R) Mufti Muhammad Taqi Usmani, Prof. Dr. Fazlur Rahman and Mufti Irshad Ahmad Aijaz. Mufti Irshad Ahmad is also the Shariah Adviser of the Bank who works full-time with the management and guides them in issues pertaining to the Shariah. Details of our Shariah Board members are given below:

Justice (R) Muhammad Taqi Usmani:

Justice (R) Muhammad Taqi Usmani is the Chairman of Shariah Supervisory Board of the Bank.

He is a renowned Islamic Scholar of Pakistan and has held a number of positions in board of prestigious Islamic institutions.

Presently, he is the Permanent member of International Islamic Fiqh Academy, Jeddah, Vice President of Darul Ulloom Karachi, Chairman International Shariah Standard Council of Accounting and Auditing Organization of Islamic Financial Institutions (AAOFI), Bahrain; Chairman of Shariah Board Bahrain Monetary Agency (BMA), Bahrain; Chairman of Shariah Board, Abu Dhabi Islamic Bank, UAE; Chairman of Shariah Board, Meezan Bank, Pakistan; Chairman of Shariah Board, Islamic House of Britain plc, UK; Chairman of Shariah Board, HSBC Amanah Finance, Dubai.

Muhammad Taqi Usmani obtained his 'Takhassus' (Specialization in Islamic Fiqh and Fatwa) degree, equivalent to PhD, from Darul Ulloom Karachi in 1961.

He also holds a Master's degree from Punjab University in Arabic Literature and LLB degree from Karachi University

Muhammad Taqi Usmani has served as a Judge of Shariat Appellate Bench, Supreme Court of Pakistan from 1982 to 2002 and Judge of Federal Shariat Court of Pakistan from 1980 to 1982.



He has written a number of books and articles on Islamic Banking and Finance in Arabic, Urdu and English.

Professor Dr. Fazlur Rahman:

Professor Dr. Fazlur Rahman is the member of Shariah Supervisory Board of the Bank.

He is a renowned scholar and has over 30 years of teaching experience in various countries of the world including Malaysia and Saudi Arabia.

Presently, he is the Director of Islamic Guidance Trust and Shariah Adviser of Atlas Asset Management's Atlas Islamic Fund.

He is also a faculty member of Sir Syed University in Karachi.

He has contributed several articles on interest, Muslim personal laws, and human rights etc. Moreover, one of his writings, "a study of commercial interest from the point of view of Fiqh and History", is of great repute in literary circles and has been extensively quoted by Federal Shariah Court in its Judgment in 1991 and again in 1999.

Mufti Irshad Ahmad Aijaz

Mufti Irshad Ahmad Aijaz is appointed as the full time Shariah Adviser to the Bank.

He comes from a leading family of scholars. His father, Maulana Muhammad Ashfaque Ahmad, is better known for translating in English the famous ‘Tafseer e Usmani’.

He graduated from Jamia Uloom Islamiyyah, Binnori Town, Karachi and he has done his Shadat-ul-Aalamia (Masters in Arabic and Islamic Studies) from there as well.



Afterwards, he completed his Takhassus fi al-Iftaa (Specialization in Islamic Jurisprudence and Fatwa) from Jamia Darul Uloom, Karachi.

Mufti Irshad Ahmad is well versed in Islamic economics. Mufti Irshad has passed an Islamic economics course “Contemporary Business and Banking and its critical evaluation in the light of Shariah” from the Centre for Islamic Economics, Jamia Darul Uloom, Karachi.

Mufti Irshad has also recently completed his MBA program from (AMI) Iqra University, Karachi.

He is also presently associated with Iqra University as Lecturer in Islamic Studies and is enrolled in the MPhil program with specialization in Islamic Finance at (AMI) Iqra University, Karachi.

Board Of Directors:

The Board of Directors of Bank Al-Islami comprises of eminent representatives. These include Chief Justice (R) Mahboob Ahmed (Chairman), Mr. Ahmed Randeree, Mr. Ali Raza Siddiqui, Mr. Ali Hussain, Mr. Hasan A. Bilgrami, Mr. Hicham Hammoud, Mr. Marwan Hassan Ali ElKhatib and Mr. Shabir Ahmed Randeree. Details of the members of our Board of Directors are given below: Chief Justice (R) Mahboob Ahmed (Chairman):

Chief Justice (R) Mahboob Ahmed is the Chairman of the Board of Directors of the Bank. Mr. Mahboob Ahmed graduated from University of Punjab and completed his LLB in 1957. He practiced at the Bar of Lahore High Court and Supreme Court of Pakistan for 22 years particularly on the constitution and commercial sides. Mr. Mahboob Ahmed was appointed Judge of Lahore High Court in 1978 and became Chief Justice in 1990-91. He also has been the Chief Justice of Federal Shariat Court of Pakistan in 1997. He has also served as the acting Governor of Punjab. During his tenure as judge of Lahore High Court he was the first original side judge on the Banking Jurisdiction and also the Company Judge and Chairman-Election Authority. He also represented Pakistan in a number of conferences in the Middle East, Far East and Europe.



Mr. Mahboob Ahmed has been on the Board of Directors of Jahangir Siddiqui & Co. Ltd. since October 31, 2002. He is also the Director of Azgard Nine Limited.

Mr. Ahmed Goolam Mahomed Randeree:

Mr. Ahmed Goolam Mahomed Randeree is the Chairman of the DCD Group and its associated holdings in International Trade Finance and Property & Investment businesses. Having moved from South Africa to the UK in the mid 1970's, Mr. Randeree was instrumental in growing the groups Textile and Trade Finance business, Revelate Limited. The business operated throughout the UK, South Africa and the Far East. Mr. Randeree presided over the Group when its turnover and operations grew from US$ 2.5 million in 1977 to over US$ 150 million by 1998.

Over the past 6 years, Mr. Randeree moved to the Middle East and concentrated on various new businesses on the Indian subcontinent, Hong Kong and the UAE. Dominion Asset Management, Hong Kong and Al Ajwad International, Dubai, U.A.E represents the on-going diversification of Mr. Randeree's holdings worldwide.

Mr. Ali Raza Siddiqui:

Mr. Ali Raza Siddiqui joined JS-Investments as an Executive Director in 2005. Previously, he was Assistant Vice President at AIM Investments, a wholly-owned subsidiary of AMVESCAP Plc in Houston, U.S.A. At AIM, Mr. Siddiqui was part of a Five-person team responsible for the management of US$ 60 billion in mutual fund assets.

Mr. Siddiqui holds a Bachelors Degree from Cornell University, USA, with double majors in Economics and Government.

Mr. Ali Hussain:

He is the founder and Managing Director of Saj Capital Management Limited, BVI, a family office based in Singapore having strategic investments in financial sector in Pakistan, Europe & USA. Mr. Hussain has previously worked at Conics Technology Private Limited, Singapore, Conrac Technology Inc, USA, Hewlett Packard, USA and Fairchild Semiconductors, USA.



He has overall 38 years of profession experience and specialize in incubating, acquiring and managing technology companies and converting them in growth champions in Singapore, USA, Germany, UK and Canada.

Mr. Hussain has done his M.S in Electrical Engineering from Stanford University, USA and B.S in Electronics Engineering and also in Electrical Engineering from California State University, USA.

Mr. Hasan A. Bilgrami (Chief Executive Officer):

Mr. Hasan A. Bilgrami is the Founding Chief Executive Officer and Director of Bank Al-Islami. His association with Bank Al-Islami started as a consultant to the sponsoring shareholders right at the inception of the project where he was responsible for developing the business plan, arranging permissions, staffing and capital raising. Previously he worked as the Head of Asset Management with the National Investment Trust (NIT), as Country Manager Consumer Banking & Corporate Business with Gulf Commercial Bank, as General Manager Corporate Finance with ORIX Investment Bank and as Director and Head of Corporate Finance with Khalid Majid Husain Rahman, then a member firm of Deloitte & Touche. Mr. Bilgrami has overall 22 years of professional experience.

Mr. Bilgrami has hands on experience in structuring Islamic modes of financing while he worked as a Secretary of the Financial Instruments Committee of the Islamic Finance Commission. His specific task was development of model financial instruments that could be used by the financial services industry in Pakistan. The scope of work not only included both asset and liability side products, but also included areas such as risk management and capital adequacy. Model agreements were also part of the mandate. His work of model agreements has been approved by the Shariah Board of the State Bank of Pakistan and has become the industry standard.

He is a Director on the Board of Bank Al-Islami's subsidiary, Bank Al-Islami Modaraba Investment Limited, Director of KSB Pumps Limited as well as a Chairman of its Audit Committee and he was also the President of the National Council of the Institute of Cost and Management Accountants for the term 2009-11, Director of Pakistan Institute of Corporate Governance and a member of the Institute of Capital Markets, Pakistan.



He has also been a Director on boards of PICIC, Soneri Bank Limited, Crescent Commercial Bank Limited, Fauji Fertilizer Company Limited and National Refinery Limited.

Mr. Bilgrami graduated in Commerce from Karachi University and is a Fellow member of the Institute of Cost & Management Accountants of Pakistan since 2003. He became a Fellow of the Canadian Securities Institute in 2001.

Mr. Hicham Hammoud:

Mr. Hicham Hammoud is the Chief Operating Officer of Dubai Bank. Mr. Hammoud has over 20 years of banking experience in different capacities such as Operation & Technology, Risk Management, Sales & Distribution.

Before joining Dubai Bank, he was with Citibank for over 17 years & his last position was that of Senior Chief Operating Officer, in addition to his role as Regional Risk Manager for Middle East and Africa Region.

Hicham has led & supported a range of strategy and implementation projects in the banking sector.

He holds a Masters degree in International Business from the University of Wollongong, Australia, and also holds a Certificate of Financial Management & Banking from the American University of Sharjah.

Mr. Marwan Hassan Ali El Khatib:

He is the Managing Director of Islamic Investments at Dubai Group (Member of Dubai Holding). Mr. El Khatib has professional experience of around 18 years in areas such as Mergers & Acquisitions, Investments, Corporate Finance, Audit, Risk Management, Strategic Planning, Business Development & Corporate Banking through different roles & responsibilities within companies including Dubai Group, Al-Futtaim Group, Mashreq Bank, Dubai Chamber of Commerce and Deloitte Touche Tohmatsu.

In addition to his responsibilities, he is on Board of several companies and financial institutions such as Bank Islam Malaysia Berhad, Malaysia, Al Fajer Re-Takaful Company, Kuwait, ACR Re-Takaful, in Bahrain, Malaysia & Dubai.



Mr. El Khatib holds MBA degree in Banking & Finance from Hull University in UK and a BA degree in Business Administration & Computer Science from American University in Cairo. He is also a graduate of Senior Executive Management Development Program by the Institute of Management Development (IMD) in Switzerland.

Mr. Shabir Ahmed Randeree:

Mr. Shabir Ahmed Randeree is a principal and CEO of DCD Group Ltd (Global), a worldwide group with core business interests in Finance and Property & Investments. He has over 25 years of experience of a broad array of real estate investments, including the development, acquisition and management of offices, hotels, retail space and residential developments.

He has been the Group's Managing Director for the since 1992 and previous to this he was a founder member and Managing Director of Warrenby Limited, a business involved in International Trade Finance and Real Estate Commercial Investments in the UK, and which was later acquired by the DCD Group. He also has worked in the clothing import and export business with Dominion Clothing Distributors Limited where he was the Sales and Finance Director in the mid 1980's.

Mr Randeree holds a number of Directorships, including being a Director of the Al Baraka Bank Limited of South Africa and European Islamic Investment Bank Plc in UK. Mr. Randeree is also on the Executive committee of BMRC (a Charity related to the Ethnic Minorities Foundation UK) and Trustee for the British Edutrust Foundation, chaired by Lord Bhatia

Mr. Randeree has done his BA Honors in Accounting and a post graduate MBA.

Sponsors:

Bank Al-Islami is a joint venture among three financially sound and progressive shareholders, namely, DCD Group, Dubai Bank and Jahangir Siddiqui & Co. Ltd. Details of our sponsors are given below:

Randeree family of the DCD Group:



Mr. Ahmed Goolam Mahomed Randeree & Mr. Shabbir Ahmed Randeree are the sponsors of Bank Al-Islami in their personal capacity. They are the principal shareholders of the DCD Group.

The history of the modern DCD Group can be traced back to Jersey ( The Channel Islands ) in 1975 with the formation of DCD Holdings Limited. After three decades of trading, today the Group has its Family Investment office based out of the DIFC (Dubai International Finance Centre) with its operations extending to London, New York and Dubai.

The DCD Group's core business activities are concentrated in the Real Estate and Banking sectors. The Real Estate division of the DCD Group concentrates on enhancing and delivering long-term gains for the Group and its Partners internationally. The Group has built its track-record primarily in the UK and USA, then spread to the Middle East and a select number of Far East and African destinations. Over the past three decades, the Group's real estate investments have produced a consistent, attractive IRR.

The Group takes a proactive hands-on Asset Management role and is responsible as a managing partner for all or a portion of the equity required in any given transaction. As of June 2007, the total value of properties owned and/or managed by the DCD Group, was in excess of US $3.0 Billion.

The DCD Group's interests in the Banking sector comprise of various niche holdings internationally, including a stake in Dallah Albaraka Bank Limited in South Africa which was formed in 1989 .

More recently, the Group played a pioneering role with QIIB (Qatar International Islamic Bank) in the formation of the Islamic Bank of Britain PLC (IBB) and retains its shareholding in the Bank. DCD also remains a founding shareholder in the European Islamic Investment Bank PLC (EIIB), which raised approximately 200 million pound, pre and post listing on the LSE.

In 2007, the Group were founding investors in The Islamic Bank of Asia in Singapore, with DBS Development Bank of Singapore as the principle promoter.

Dubai Bank PJSC: Dubai Bank PJSC which commenced operations in September 2002, is one of the UAE’s most dynamic financial institutions and closely associated with Dubai's plans of



establishing itself as the region’s financial and trading centre. The Bank’s focus is to be a leading financial institution that is a flagship for Dubai, the UAE, the GCC and beyond. Dubai Bank is 70% owned by Dubai Banking Group, with the remaining 30% being held by Emaar Properties. Dubai Banking Group was launched in May 2008 under the directive of HH General Sheikh Mohammed bin Rashid Al Maktoum to consolidate the existing Shariah-compliant investments of Dubai Holdings and form a global Islamic investment company. Dubai Banking Group is managed by Dubai Group, the leading diversified financial services company of Dubai Holding. Emaar Properties is the largest real estate developer in the GCC region and have managed large-scale projects in Dubai such as: Dubai Marina, Burj Dubai, Dubai Mall. The Company has a collective presence in over 36 markets spanning the Middle East, North Africa, Pan-Asia, Europe and North America.

Dubai Bank offers a full range of products and services through its Corporate & Consumer Banking divisions. These include transaction and deposit accounts,financing, trade finance, and wealth management services as well as a host of other unique Banking services. In the near future, Dubai Bank plans to increase its current Banking network by opening additional branches, and developing new alliances with key financial institutions in the GCC and beyond.

Dubai Bank has identified Islamic Banking as a promising area. On January 1,2007, the Bank became a Shariah compliant financial institution. The member of Shariah Supervisory Board of Dubai Bank consists of Justice (R) Muhammad Taqi Usmani, Sheikh Nizam Yaquby, Dr Mohamed Elgari and Dr Mohamed Daud Bakar.

Jahangir Siddiqui & Co. Ltd: Jahangir Siddiqui & Co. Ltd. ("JSCL") is the holding company for one of the largest and most diversified financial services groups in Pakistan, involved in investment Banking, broker-dealer operations, proprietary trading, insurance, Banking and asset management. The Company was established in 1991 and was the first Pakistani financial services company to boast a Wall Street pedigree due to its previous joint venture with Bear Stearns and Co. It is also the only securities company to be a primary dealer for Government securities in Pakistan and is one of the largest bond trading firms in Pakistan. JSCL is a listed company on the Karachi Stock Exchange.

JSCL subsidiaries include JS Global Capital Ltd, JS Bank., and JS-Investment Ltd. JSCL also has holdings in the sugar, sugar derivatives, specialty textile, specialty steels and insurance sectors through significant minority holding in leading companies in these



sectors. These strategic investments and associated companies include, EFU General Insurance, EFU Life Assurance, Allianz EFU Heath Insurance, Azgard Nine and Al Abbas Sugar Mills amongst others.

Share Holding Pattern:

Shareholding Rs. (Million) %Founding Sponsors Dubai Bank PJSC 1,310.53 24.82Jahangir Siddiqui & Co. Ltd 1,112.56 21.07Randeree Family of the DCD Group

1,028.48 19.47

Mr. Hasan A Bilgrami 5.81 0.11Chief Justice(R) Mahboob Ahmed

1.31 0.02

Total 3,459 65.50General Public* 1,821 34.49Grand Total 5,280 100

* The initial public offering of Bank Al-Islami took place in March 2006. Bank Al-Islami shares were formally listed on the Karachi Stock Exchange on April 17, 2006.

On October 31, 2006, the Board of Directors of Bank Al-Islami decided to further issue capital of Rs. 1.2 Billion through a right share issue of 60% at par i.e. Rs.10 each to existing shareholders.

On August 23, 2007, the Board of Directors of the Bank decided to raise the paid up capital of the Bank to Rs. 4.2 billion through a right issue of 31.25% at par i.e Rs.10 each to existing shareholders.

On March 31, 2008, Bank Al-Islami issued an additional Rs. 80 Million shares to general public.

On August 27, 2008, the Board of Directors of the Bank decided to raise the paid up capital of the Bank to Rs. 5.2 billion through a right issue of 23.366% at par i.e Rs.10 each to existing shareholders.



SWOT Analysis:

Strengths:

2nd largest Islamic bank of Pakistan in term of deposits.

Interest free banking in all walks of banking sector which truly supports the

Islamic ideology of an Islamic financial system.

As compared to traditional commercial bank’s charges less to the customers as it

also works on Islamic basis of welfare.

Bank Al-Islami product positioning is very successful. It targets the areas like

salaried person, business people and self-employed person with. Its product

positioning affects the life style of people. Its products help to improve standards

of living of people.

Bank Al-Islami’s existing structure and a wide network of branches all over the

country give it a competitive edge over its market competitors and are now even

giving tough competition to rival Islamic banks as well as the commercial

banking sector. .

Largest amount of corporate deals in Pakistan.

Employees are very pleased in terms of salary and incentives.

The Bank has hired capable middle and lower management personnel to build a

team of professionals at all levels.



Bank Al-Islami’s website and phone banking services provide up-to-date product

information.

Bank Al-Islami provides its customers a wide variety of services including

Biometric ATMs, Online banking, Phone Banking, Internet Banking and

electronic remittances.

Broad network of online branches is empowering the customers by offering them

remote access to their accounts from any online branch.

Cooperative, effective and supportive working environment in banking industry

Weaknesses:

Being a bank based on values and financial system given by Quran & Sunnah, it has a very limited scope amongst the banking sector.

Due to low rate of returns and the risk of loss people don’t tend to invest. Limited amount of offices and ATM’s around Pakistan, mostly available in only

urban areas of Pakistan. Limited amount of credit available as compared to other commercial banks. Normally to a naked eye the operating system of an Islamic bank looks same as a

commercial bank so people are not being able to spot the differences because of lack of publicity and other factors that are effecting its growth

Opportunities:

To explore and create such a system that would be easily understandable for a normal individual, so that’s it network could grow around Pakistan and also internationally.

To takeover the mutual funds and mortgage industry of Pakistan as in Islamic banking system the expenses incurred are far less.

Threats:



Products & Services:

Consumer Banking:

It’s divided in further specifically designed programs which are as follow:

MUSKAN home financing:

Features:

Do you Dream of providing your loved ones a home of their own but don't have the funds? Don't stop dreaming, Let us make your Dream a Reality with Bank Al-Islami MUSKUN Home financing where you can avail financing for any of the following facilities:

Home Purchase:

Just point your finger at the Bungalow or Apartment of your choice and we'll help you buy it.

Financing Tenure

2 to 20 years

Financing Range

Rs. 200K – 10M

Bank Investment Ratio

Maximum up to 80% for salaried / selected SEPs *Maximum up to 70% for Businesspersons/NRPs(* Doctors, Engineers, Architectures, Chartered Accountants)

Prepayment Option available

No Penalty applies after one year.In case Customer applies for purchase of early units or pre-payment within 12 months after disbursement, additional Musharakah Units will be revalued at 5% higher than face value.

Home Construction:

So you want to build your Dream home rather than buy a ready made one? You make the design; we’ll help you build it.



Construction Tenure

Maximum 2 Years

Financing Tenure

Minimum 2 Years (excluding construction period)Maximum 20 Years (including construction period)

Financing Range

Rs. 200K – 10M


Salaried / Selected SEPs*:• Up to 80% for financing upto Rs. 10M.• Up to 70% for financing > Rs. 10M.Businessmen/NRPs: Up to 70% for all financing amounts.


No Penalty apply after one year.In case Customer applies for purchase of early units or pre-payment within 12 months after disbursement, additional Musharakah Units will be revalued at 5% higher than face value.

Home Renovation:

Thinking of remodelling your kitchen to fulfill your wife's long awaited wish, or build a study area for your kids, or a cozy library for your parents, or just want to give your home a new look? You plan it; we'll help you renovate it.

Construction Tenure

Maximum 6 months

Financing Tenure

2-7 Years

Financing Range

Rs. 150K – 10M


Maximum 50% for Salaried / Selected SEPs*Maximum 50% for Businessmen/NRPs(* Doctors, Engineers, Architectures, Chartered Accountants)


No Penalty applies after one year.In case Customer applies for purchase of early units or pre-payment within 12 months after disbursement, additional Musharakah Units



will be revalued at 5% higher than face value.

Home Replacement:

Don't lay the foundation of your Dream home on interest. If you already have a Conventional Mortgage loan and want to switch to Shariah compliant means of Financing, we'll help you transfer it.

Financing Tenure

2-20 Years

Financing Range

Rs. 200K - 10M


Salaried / Selected SEPs*:Up to 80% for all financingBusinessmen/NRPs:Up to 70% for all financing amounts.(* Doctors, Engineers, Architectures, Chartered Accountants)


No Penalty applies after one year.In case Customer applies for purchase of early units or pre-payment within 12 months after disbursement, additional Musharakah Units will be revalued at 5% higher than face value.

The MUSKUN Home financing facility is based on the principle of Diminishing Musharakah and Ijarah. The Diminishing Musharakah transaction is based on Shirkat-ul-Milk where you and the Bank participate in ownership of a property. The share of the bank is then leased to you on the basis of Ijarah and is divided into a number of units. It is then agreed that you will buy the units of the bank periodically, thereby increasing your own share till all the units of the Bank are purchased by you which will make you the sole owner of the property. Till that time, you pay the Bank rent for its units leased to you. The rent keeps on decreasing as your ownership in the property increases and that of the Bank decreases.

Benefits:

Quick Processing Financing up to 50% of the value of the property Financing limit Rs. 10 Million Tenor up to 20 years



No pre payment additional price charged after one year Flexible & Affordable installments with Sahulat payment schedule Clubbing of family income No Negative Area

How It Works:

You will approach Bank Al-Islami and inform about your needs of financing for Home Purchase, Construction, Renovation or Balance transfer facility

You will then submit the filled Application Form along with the required documents and a cheque for processing fee. Our Business Executive will guide you during the whole process.

The Bank will conduct verification of your residence & office addresses as well as those of the references provided by you

The Bank will then conduct your Income estimation to determine the maximum financing that can be provided to you. In case you are Self Employed, our agent will approach you for the necessary income details and documents. In case you are Salaried, we will approach your employer for this purpose

A legal opinion is then obtained by the Bank on the property documents submitted by you

Valuation of the property is done to determine its Market value

The Bank then issues you an offer letter for the financing amount you qualified for based on your evaluation

After your acceptance, a Shirkat-ul-Milk (Musharaka) Agreement is signed between you and the Bank, whereby, the Bank and you will become joint owners (partners) in the Musharakah property.

A Pay Order is issued in the name of the seller in case of MUSKUN Home purchase by the bank. You’re Business Executive and our in house / external lawyer will accompany you for the transfer of property in your name. The Pay Order is then handed over to the seller. In case of MUSKUN Home Construction / Renovation / Replacement Cases, the financing amount is simply credited to your account. It is ensured through



Shariah-compliance checks that the funds are utilized only for construction/renovation/replacement.

You and the Bank now jointly own the home

You and the Bank also execute a Monthly Payment Agreement whereby you agree to pay a monthly payment to the Bank for the use of the bank's ownership in home

Undertaking to Purchase is given by you, under which you undertake to purchase the Musharakah Units (representing Bank's undivided ownership share in the property) from the Bank periodically.

On monthly basis, you purchase Musharakah units from the Bank

When you have purchased all units of Bank, you become the sole owner with a free and clear title to your home

Islamic Auto Ijarah-new vehicles:

Drive your Dream Car-the right way with Islami Auto Ijarah. Now you can avail Auto finance facility for a Car of your choice in a completely Shariah compliant manner.

Bank Al-Islami's Auto Ijarah facility is based on the concept of Ijarah. It is a Shariah compliant alternative to Conventional leasing where Bank acts as a Lessor and you act as a Lessee. The Bank requires you to pay a monthly rent for the use of the Vehicle. In this while, the ownership of the vehicle remains with the Bank, only the rights of use is transferred to you. At the end of the Ijarah Agreement, you will be given a choice whether to return the vehicle to the Bank and receive back the security deposit paid by you at the beginning* or to purchase it at a price as low as the security deposit.

Ijarah facility for New VehiclesTenure of Ijarah Min- 3 Years, Max-5 yearsMinimum Cost of Vehicle

Rs. 250,000

Security Deposit 30% to 50%Processing Rs. 4,500/- (Rs. 1,000 Pre Processing is part of the Rs. 4,500/-



Charges Amount)Tracker Installation

All Vehicles costing above Rs. 600,000 are required to be installed with tracker

Takaful a) 3.15% b) 3.9% c) 4.1% d) 5.25% e) 5.5%

Concept of Ijarah:

Ijarah means to give something on rent is a Shariah compliant alternative to Conventional leasing where Bank acts as a Lessor and you act as a Lessee. The Lessor (Bank) allows the Lessee (You) to use the vehicle owned by the Lessor in return for a monthly rent. The following are rights and responsibilities of the Lessor and Lessee in an Auto Ijarah arrangement:

The Lessee has the right to use the vehicle whereas the ownership rests with the

Lessor.

All liabilities resulting from the ownership (Islamic insurance, transportation, duties etc) shall be borne by the Lessor and all the liabilities relating to use of the vehicle shall be borne by the Lessee.

The vehicle will remain in the risk of the Lessor throughout the lease period. Any damage or loss caused by factors which are beyond the control of the Lessee shall be borne by the Lessor.

The Lessee is liable for any damage to the vehicle caused by any misuse or negligence on his/her part.

The period of lease must be determined in clear terms and the vehicle must be fully identified and quantified by both parties.

The Lessor cannot increase the rent unilaterally.

The Lease period will commence from the date on which the vehicle is delivered to the Lessee whether the Lessee has started using it or not.



If the leased vehicle has lost its function and no repair is possible, the lease shall terminate on the day on which such loss occurred. However, if the loss is caused due to misuse or negligence of the Lessee, he/she will be liable to compensate the Lessor at a value that was prevailing in the market immediately before loss.

The Lessee will bear the maintenance and operating costs of the vehicle during the lease period.

The Lessor will bear the cost of Takaful of the vehicle and its annual renewals during the lease period.

All ownership related expenses (registration, Takaful) shall be borne by the Lessor.

Rent will start after delivery of vehicle to the Lessee.

After completion of the tenor of lease, the Lessor will go for any of the four options with the mutual consent of the Lessee:

Give an option to the lessee to purchase the vehicle at a pre agreed price. Take the vehicle back from the Lessee Renew the Lease contract for another tenure. Lease it out to another party.

How it Works:

You will approach Bank Al-Islami and identify the vehicle you want on Auto Ijarah

You will fill in the Application Form and submit the required documents

Bank Al-Islami will process your application and approve or reject the credit application, depending on how you fit the bank’s risk criteria

If the application is approved, you will sign an Undertaking to Ijarah whereby you will undertake to lease the vehicle. This document is signed in booking cases only once it arrives at the dealer



After the vehicle arrives at the dealer and is purchased by the Bank, you will sign an Ijarah agreement with the bank, whereby the Bank will rent out the vehicle to you subject to the terms and conditions of the Ijarah Agreement

Under the Ijarah Agreement, you will undertake to pay a monthly payment for the right to use the vehicle in line with the Terms & Conditions of the Agreement

Under the Ijarah Agreement the customer also signed the undertaking to purchase document.

Under the Agreement, all the cost associated with the ownership of the vehicle will be borne by the Bank, while you will be responsible for all usage-related expenses of the vehicle

At the end of the Ijarah period, you will be offered to buy the Vehicle at a pre-agreed value from the Bank or get your security deposit refunded to you by returning the vehicle to the Bank

Islamic Auto Ijarah-Used/Imported

Drive your Dream Car-the right way with Islami Auto Ijarah. Now you can avail Auto finance facility for a Car of your choice in a completely Shariah compliant manner.

Bank Al-Islami's Auto Ijarah facility is based on the concept of Ijarah. It is a Shariah compliant alternative to Conventional leasing where Bank acts as a Lessor and you act as a Lessee. The Bank requires you to pay a monthly rent for the use of the Vehicle. In this while, the ownership of the vehicle remains with the Bank, only the rights of use is transferred to you. At the end of the Ijarah Agreement, you will be given a choice whether to return the vehicle to the Bank and receive back the security deposit paid by you at the beginning* or to purchase it at a price as low as the security deposit.

Ijarah Facility for Used/Imported VehiclesTenure of Ijarah Min - 3 Years, Max - 5 yearsMinimum cost of vehicle

Rs. 250,000

Security Deposit Min 30% to Max 50% for vehicles till 5 years at the time of IjarahProcessing Charges

Rs. 4,500/- (Rs. 1,000 Pre Processing is part of the Rs. 4,500/- Amount)

Tracker All Vehicles costing above Rs. 600,000 are required to be



Installation installed with trackerTakaful Takaful coverage on all vehicles is compulsory and is provided by

Takaful Pakistan

How It Works:

You will approach Bank Al-Islami and identify the vehicle you want on Auto Ijarah

You will fill in the Application Form and submit the required documents

Bank Al-Islami will process your application and approve or reject the credit application, depending on how you fit the bank’s risk criteria

If the application is approved, you will sign an Agency agreement with the bank whereby the bank will appoint you as an agent to identify and select the vehicle you want to lease

You then enter into a Ijarah agreement with the bank, whereby the Bank will purchase the vehicle in its own name and rent it out to you subject to the terms and conditions of the Ijarah Agreement

Under the Ijarah Agreement, you will undertake to pay a monthly payment for the right to use the vehicle in line with the Terms & Conditions of the Agreement

Under the Agreement, all the cost associated with the ownership of the vehicle will be borne by the bank, while you will be responsible for all usage-related expenses of the vehicle

At the end of the Ijarah period, you will be offered to buy the Vehicle at a pre-agreed value from the Bank or get your security deposit refunded to you by returning the vehicle to the Bank



Retail Banking:

Islami Current Accounts:

With our Islami Current Account, you can have complete peace of mind that your funds are safe and utilized in Halal avenues only. Islami Current Account is ideal for customers who have frequent transaction needs and require unlimited access to their account to meet their personal or business expenses. Also, you have access to our entire online network of 102 Branches in 49 Cities for convenience of instant and secure intercity transactions. So enjoy full control over your funds in a Shariah compliant manner.

The Islami Current Account offers you the following Key salient features:

A minimum balance of Rs. 1,000/- only to open the account Joint Account facility up to four joint account holders Access to the entire online branch network 102 Branches in 49 Cities Free unlimited online intercity transactions Free 1 Card, Bank Al-Islami's ATM & Debit card Access to all ATMs linked to MNET and 1 Link throughout Pakistan InterBank Funds transfer facility through ATM Facility of making instant payments at Orix terminals for grocery, fuel ,dining and

other purchases Free Internet Banking service Round the clock phone Banking through 111-ISLAMI (475-264) or 111-BIP

(247)-111 Personalized service from Customer Relationship Officers Free Account statement facility Hold mail and Stop payment facility Safe deposit lockers (subject to availability)

How It Works:

Bank Al-Islami's Islami current account is based on the Islamic principle of Qarz (loan) whereby you are the lender and the Bank is the borrower. These funds are invested in halal business ventures only so that you are 100% sure that your funds are managed in a Shariah



compliant manner. The funds are payable to you on demand as and when required with neither any addition nor penalty.

Islami Foreign Currency Account:

Bank Al-Islami Islami Foreign Currency account is ideal for businesses and individuals who would like to diversify their investment in different currencies to ensure security against currency fluctuations or want to keep foreign currency account to meet their business needs. Also, you can have easy access to foreign currency with no hassles of foreign exchange conversion when you have to travel abroad or remit funds abroad to meet education, leisure or business needs.

Key Features:

Safe Deposit Lockers Hold Mail & Stop payment facility Available in USD, GBP & EURO A minimum balance of USD 100/-or equivalent in GBP or EURO to open the account Joint Account facility up to four joint account holders Free Account statement facility Free Internet Banking service Round the clock phone Banking through 111-ISLAMI (475-264) or 111-BIP (247)-111 Personalized service from Customer Relationship Officers

How it Works:

Bank Al-Islami's Islami foreign currency account is based on the Islamic principle of Qarz (loan) whereby you are the lender and the Bank is the borrower. These funds are invested in halal business ventures only so that you are 100% sure that your funds are managed in a Shariah compliant manner. The funds are payable to you on demand as and when required with neither any addition nor penalty.

Islami Bachat Account:

Our Islami Bachat account is a bundle of benefits. It helps you keep up with your tradition of savings with the convenience and safety of a professional and understanding bank. Also, you earn highly attractive profits on your savings with the flexibility of making as many transactions on your account as you want.



Islami Bachat Account is ideal for customers who need to draw money for monthly expenses but would also like to earn on your hard earned savings. Corporate Employers can also avail this account to provide convenience, flexibility and halal profits to their employees by opening their salary accounts with us. The Islamic Bachat Account offers you the following key salient features:

Monthly profit/loss payment on daily product basis Differential and specific pool allocation possible for large deposit holders Profit announcement at the end of every month A minimum balance of Rs. 100/- only to open the account Joint Account facility up to four joint account holders Access to the entire on line network of 102 Branches in 49 Cities Unlimited over the counter deposits and withdrawals, free of charge No restrictions on intercity transactions Free 1 Card, Bank Al-Islami's ATM & Debit card Access to all ATMS linked to MNET and 1 Link throughout Pakistan Facility of making instant payments at Orix terminals for grocery, fuel, dining and other

purchases Free Internet Banking service Round the clock phone Banking through 111-ISLAMI (475-264) or 111-BIP (247)-111 Personalized service from Customer Relationship Officers Free Account Statement facility Hold mail and Stop payment facility Safe deposit lockers (subject to availability)

How It Works:

Bank Al-Islami's Islami Bachat account is a profit bearing account developed on the basis of the modes of Mudarabah. This is how it works:

You provide funds to the Bank on Mudaraba basis for investment in the Bank’s Shariah Compliant Assets

In this arrangement, you will function as a Rabbul Maal (investor in Mudaraba) and the Bank will act as the Mudarib (Manager of the Mudaraba)

The Bank will form a pool of customers’ funds



The pool provides financings to various individuals, corporate, government and other entities based on various Islamic modes of finance such as Murabaha, Ijarah, Musharakah, Mudaraba and other modes and would generate income

The Bank will calculate income from the pool on a monthly basis. This income will be shared between the Bank and the Depositors as per a pre agreed profit sharing ratio

The profit share of the Bank is called the Mudarib's share. This profit sharing ratio between the Bank and the Depositors is determined at the beginning of each month

The profit share of the depositors is based on the predetermined weightages assigned at the beginning of the month. A weightage based profit distribution mechanism ensures that the return paid to any Customer in a Profit & Loss sharing contract is proportionate to the risk taken

In the case of a loss, as per the rules of Mudaraba, the loss will be borne solely by the Rabbul Maal. The loss will be distributed between various categories of customers on a pro rata basis. Bank also suffers loss as no income is generated against its efforts

Islami Dollar Bachat Account:

Features:

The Islami Dollar Bachat account is ideal for individuals and businesses who are eager to save in US Dollar. This saving scheme is both for Residents and Non residents who need to either save in US Dollars or remit money from or abroad for personal or business transactions. The Islami Dollar Bachat account is a profit/loss bearing account in USD based on the principle of Mudaraba where the Bank invests your funds in a Shariah compliant manner. The profit and loss from the investment is then shared between you and the Bank.

The Islami Dollar Bachat Account offers you the following key salient features:

Free Internet Banking service Safe Deposit Lockers facility available 100% interest free Monthly profit/loss payment on daily product basis A minimum balance of USD.100/- in cash or through USD clearing cheque or valid

instructions of remittances from abroad No Zakat or Withholding tax applicable



Joint Account facility up to four joint account holders Access to the entire online branch network 102 Branches in 49 Cities No restrictions on intercity transactions Round the clock phone Banking through 111-ISLAMI (475-264) or 111-BIP (247)-111 Personalized service from Customer Relationship Officers Free Account statement facility Hold mail and stop payment facility

How It Works:

BankIslami's Islami Dollar Bachat account is a profit bearing account developed on the basis of the modes of Mudarabah. This is how it works:






The profit share of the Bank is called the Mudarib's share. This profit sharing ratio between the Bank and the Depositors is determined at the beginning of the month





Islami Mahana Bachat Account:

Features:

Long term investments yield high returns but delayed profit payment. With our Islami Mahana Munafa Account you don't compromise on any. Now you can enjoy the freedom of halal monthly gains for a prosperous present while building your wealth for a secure future. Also, Islami Mahana Munafa Account will provide you with security, convenience and flexibility of investment tenure to suit your needs.

Free Internet Banking Service Hold Mail & Stop payment facility Safe Deposit Lockers 100% interest free Available in Pak Rupees Tenure of investment are 1, 2, 3, 5 & 10 years Minimum amount of investment is Rs. 10,000/- only Profit/loss payment on monthly basis until the maturity date Payment of amount of investment on the maturity date Differential and specific pool allocation possible for large deposit holders Profit announcement at the beginning of every month Facility of premature encashment available. In such a case, the corresponding period

rate would apply, unless stated otherwise Free facility of transfer of profit and invested funds in nominated Islami Current or

Islami Bachat Account Monthly profit/loss payment on daily product basis Round the clock phone Banking through 111-ISLAMI (475-264) or 111-BIP (247)-111 Personalized service from Customer Relationship Officers Free Six monthly Account Statement facility

How It Works:

BankIslami's Islami Mahana Munafa Account is a profit bearing account developed on the basis of the modes of Mudarabah. This is how it works:











Islami Amadni Certificate:

Features:

Why take interest when you can earn Halal profit on your investment. With Islami Amadni Certificate you’re hard earned investment works harder to yield high expected profits so you can build your wealth for a prosperous future. You get the best of both worlds in a safe, secure and flexible package to perfectly meet your needs.

If you are a salaried individual, a businessperson or a corporate entity with some long term investment funds to spare, our Islami Amadni certificate is an ideal solution for you. With our Islami Amadni Certificate, the higher your investment the higher will be your return and that



too in a Shariah compliant manner. Also, you have the flexibility to choose amongst various investment tenures to suit your personal or business needs.

Islami Amadni Certificate offers you the following key salient features:

Available in Pak Rupees Investment can be done for 1, 3, 6, 12, 24, 36 or 60 months Minimum amount of investment is Rs. 10,000/- only Payment of profit/loss and amount of investment on the maturity date Quarterly profit payment for investment of 12 months and above Differential and specific pool allocation possible for large deposit holders Profit announcement at the end of every month Facility of premature encashment available. In such a case, the corresponding period

weightage would apply, unless stated otherwise Free facility of transfer of profit and invested funds in nominated Islami Current or

Islami Bachat Account Free Internet Banking service having free Term deposit enquiry facility Round the clock phone Banking through 111-ISLAMI (475-264) or 111-BIP (247)-111 Personalized service from Customer Relationship Officers Free Account statement facility

How It Works:

BankIslami's Islami Amadni Certificate is a profit bearing account developed on the basis of the modes of Mudarabah. This is how it works:











Corporate Banking:

What we Offer:

You are the major drivers of our economy and we are glad to be at your service. All of your financial needs are within the reach of our highly qualified professionals who are fully capable and committed to understand your business and provide timely and effective financial services on an on going basis.

We offer the following products and services to help you achieve your business objectives:

Account Services Trade Services Working Capital Finance Project Finance Musharakah Finance Mudarabah Finance Ijarah

Account Services:

BankIslami offers all basic banking services to suit your routine business needs.



Current Accounts with zero account maintenance fees Choice of currency-PKR, EURO, USD, GBP & JPY Transfer of funds with lowest transaction fees Access to quick and timely foreign exchange services Access to the entire online branch network 102 Branches in 49 Cities Unlimited within city and intercity online transactions Free Deposit and Withdrawal over the counter services at all BankIslami branches

Trade Services:

BankIslami offers a wide range of export and import services designed to assist you in building on your strengths, so that your company can seize new business opportunities around the world. These include:

Bank Guarantee Services for Exporters

Export Bills for Collection L/C Advising & Confirmation services Islamic Export Refinance facility Financing against Export Sight and Usance Bills (Shariah-compliant alternative

for Bill Discounting) Pre-Shipment and Post-Shipment financing on Islamic modes of financing

Services for Importers

Letter of Credit Import Financing (by way of Murabaha/Ijarah)

Financing:

Working Capital Finance: for your short term financing needs

At BankIsami, we understand that your business needs constant access to low cost and flexible financing, in order to meet day-to-day funding needs. Our team of experienced Relationship Managers with wide sector experience offers you effective cash flow management by way of financing arrangements suitably structured to your needs and your risk profile.



Cash is the lifeline of your business. Let your business have a blooming & prosperous life with our Working capital finance facility. To fulfill your working-capital financing requirements, BankIslami offers a wide range of products as follows: Murabahah Financing:

Murabahah is a type of sale in which the seller discloses the cost of goods and profit to the buyer. Through this short-term financing mode, BankIslami can finance the 'asset-purchase requirement' of the Corporate Customers.

The Customer, intending to utilize the Murabahah facility, identifies the commodities ('assets') it needs to purchase through Murabahah facility. BankIslami purchases the assets from Supplier and then sells the same to the Corporate Customer against an agreed price (including disclosed profit portion) on deferred payment basis. Istisna Financing:

Istisna is a contract of sale of specified items to be manufactured/constructed, with an obligation on the part of the manufacturer/seller to deliver them to the buyer upon completion.

Istisna can be used for made-to-order commodities where the buyer (BankIslami) would order a specific good with some specifications to be manufactured by the Corporate Client in a particular period of time and deliver to BankIslami after completion.

Salam Financing:

Salam is a sale, whereby, the seller undertakes to supply some specific commodity to the buyer at a future date in exchange for an advanced price fully paid on the spot. As a matter of principle, the sale of a commodity which is not in the possession of the seller is unlawful. Thus, the practice of Salam is legalized as an exception and is allowed under certain terms and conditions.

Salam is allowed for commodities only which are homogeneous and fungible in nature i.e. every unit of the commodity should be identical and substitutable in nature e.g. sugar, rice, wheat etc. Therefore, Salam is an ideal mode for financing for agricultural concerns. Salam



financing can also fulfill all working capital requirements of manufacturers/traders dealing in homogeneous commodities. Project Finance: for your Medium & Long term financing needs

BankIslami offers medium and long-term financing facilities for infrastructure, BMR and industrial projects in all sectors directly or on syndication basis. Musharakah Finance:

In Musharakah, a joint enterprise is formed for conducting some business in which all partners share the profit according to a mutually agreed pre-determined ratio, whereas, the loss is shared in the ratio of capital investment. From Shariah perspective, Musharakah is one of the preferred modes of financing. The scope of Musharakah is broad. Musharakah can be applied to fulfill project financing needs as well as working capital financing needs of Corporate Clients. Since Musharakah transactions are based on pure profit and loss sharing arrangement, therefore, the risks associated with such transactions are greater as compared to other financing modes. Due to this reason, Musharakah transactions are executed subject to satisfactory review of feasibility of the proposed transaction/project. Mudarabah Finance:

Mudarabah is a kind of partnership where one partner gives money to another for investing in a commercial enterprise. The investment comes from the first partner who is called 'Rabb-ul-Maal' while the management of the business is an exclusive responsibility of the other, who is called 'Mudarib'. The profits generated are shared according to a mutually agreed pre-determined ratio, whereas, loss is borne by Rabb-ul-Maal unless the loss is due to negligence of Mudarib.

The scope of Mudarabah is broad. Mudarabah can be applied to fulfill project financing needs as well as working capital financing needs of Corporate Clients. Since Mudarabah transactions are based on pure profit and loss sharing arrangement, therefore, the risks associated with such transactions are greater as compared to other financing modes. Due to this reason, Mudarabah transactions are executed subject to satisfactory review of feasibility of the proposed transaction/project.

Investment Banking:



What We Offer:

The external and internal market conditions have had a major impact in certain sectors of the economy, yet their impact lies short term only. The overall market share of the Investment Banking activities has remained robust and intact. The Bounce Factors in the equity markets is seeing improvements which are likely to see activity in IPO offerings and mushrooming of Mutual Funds.

A good pipeline of Capital raising opportunities exists, particularly in Infrastructure, Textile and Services industry. Amiable investment opportunities for the medium term may provide leverage into credit and marketing activities.

BankIslami Pakistan Limited takes deep pride in providing Investment Banking to its valued customers, as its core business, revolving around the concept of Wealth Management. Products & Services: BankIslami's Investment Banking Division offers a full range of the comprehensive, innovative and uniquely structured customer centric advisory solutions to its clients. After categorizing the products and services of low, medium and high risk the product is structured on the guidelines of Shariah. Following are the products and services:

Advisory:

Fund raising Corporate restructuring Mergers & acquisitions Infrastructure development Project financing

Structuring:

Securitization Distressed assets sales Structured finance



Initial public offeringsUnderwriting:

SUKUKs Equity Musharakah Certificates

Trusteeship:

Trusteeship’s for SUKUKs etc. Fiduciary roles in mutual funds

Specialized Roles:

Private Equity Special Projects Ijarah and Musharkah Syndications

Clients & Transactions:

Privately Placed SUKUK Issue of Shahmurad Sugar Mills Limited amounting to Rs. 500,000,000/- (rated A- by JCR – VIS)

Privately Placed SUKUK Issue of Pak Elektron Limited amounting to Rs. 1,200,000,000/- (rated A+ by PACRA)

Privately Placed SUKUK Issue of Amtex Limited amounting to Rs. 650,000,000/- (rated A+ by JCR – VIS)

Privately Placed SUKUK Issue of New Allied Electronics Industries (Private) Limited amounting to Rs. 750,000,000/- (rated A by JCR – VIS)

Privately Placed SUKUK Issue of Eden Housing Limited amounting to Rs. 1,630,000,000/- (rated A by JCR – VIS)

Privately Placed SUKUK Issue of Eden Developers (Private) Limited amounting to Rs. 200,000,000/- (rated A- by PACRA)

Privately Placed SUKUK Issue of Sui Southern Gas Company Limited amounting to Rs. 5,000,000,000/- (rated AA by PACRA)



Privately Placed SUKUK Issue of Eden Housing Limited amounting to Rs. 730,000,000/- (rated A by JCR – VIS)

Privately Placed SUKUK Issue of Pak Elektron Limited amounting to Rs. 1,100,000,000/- (rated A+ by PACRA)

Privately Placed SUKUK Issue of Pace (Pakistan) Limited amounting to Rs. 2,000,000,000/- (rated AA- by PACRA)

Privately Placed SUKUK Issue of Lahore Electric Supply Corporation Limited amounting to Rs. 5,000,000,000/- (backed by GoP Guarantee)

Privately Placed SUKUK Issue of Optimus Limited Amounting to Rs. 250,000,000/- (Rated A - by JCRVIS)

Privately Placed SUKUK Issue of Haq Bahu Sugar Mills Limited Amounting to Rs. 295,000,000/-

Privately Placed SUKUK Issue of Three Stars Hosiery Mills (Pvt.) Limited Amounting to Rs. 400,000,000/- (Rated A + by PACRA)

Value Added Services:

Online Banking:

BankIslami's has a wide network of 102 Branches in 49 Cities all of which provide Online Banking services. Online Banking means that all our 102 Branches in 49 Cities are connected with each other so that you can instantly access your account and make transactions in any BankIslami Branch. The following are the key benefits that you will get out of using our online branch network:

Cash Deposit for immediate credit to a remote branch. Remote Cheque Encashment from any online branch. Instant Funds Transfer between any 2 online branches. Balance Enquiry and Statement of Account from any online branch.

Interbank Fund Transfer:



Do you want to provide ease and convenience to your friends, family, colleagues and business associates. With our Interbank funds transfer (IBFT) facility you can easily transfer funds in their accounts via your ATM. Now, when dealing with you they can ensure hasslefree funds transfer in their accounts. No nuisance of waiting for Cheque clearance or going to the branch to deposit Cash or Cheque.

IBFT facility enables you to send and receive funds Online from and to any Account holder of 1Link IBFT participating member Banks. Following are the key benefits that you will get out of using our IBFT facility:

Convenience Easy to use Instant Transfer i.e. online Secure 7x24 Facility- Round the Clock IBFT totally eliminates the use of cheques and the transactions can be processed Online

Internet Banking:

Now you can access your account information and view your transactions history at home or office on your personal computer/Laptop. BankIslami Internet Banking provides you the facility to access and manage your accounts and transactions securely via Internet 24 hours a day, 7 days a week.

BankIslami Internet Banking provides you the following key features:

Access to your Account mini/full statement Funds transfer from one BankIslami account to another Access to transaction history. Transaction enquiry by Cheque No., transaction amount or date. Complaint registration. Request feature for updating contact information. Activity log to track your transactional activities performed on Internet Banking Personalization of Internet Banking Term Deposit enquiry.

Visa/Debit card:



BankIslami Visa Debit card opens new doors of convenience for you. Now, you can use your BankIslami Visa Debit ATM Card locally as well as globally with Visa accepting Point of Sales (POS) locations and ATMs. BankIslami Visa Debit Card gives you convenience to access your money wherever and whenever you need it for all your purchases. BankIslami Visa Debit Card comes handy with benmefits and features that you always dream of. Global Acceptance:

BankIslami Visa Debit Card is accpeted at over 50,000 Visa outlets in Pakistan and at over 27 million outlets around the world. This Card also lets you withdraw from over 4,000 ATMs nationwide and over 1 million ATMs arounf the world. Buy Now, Pay Now: With BankIslami Visa Debit Card, your purchase amount instantly gets deducted from your account without any additonal cost. PLus, you can manage your money through this as week.

Zero Loss Liability: If your Card is stolen or lost, immediately call our 24/7 Phone Banking at 111 ISLAMI (111- 475264) or from outside Pakistan, call (+92-21) 111 ISLAMI to report loss/theft. You are protected from financial liability arising from any unauthorized transaction done on your Card after being reported lost.

Global Customer Service: You travel assistance 24/7 from Visa Glabal Assistance Service. This service c an also be used for lost/stolen card reporting. Visit our website www.bankislami.com.pk to view the Global Customer Assistance (GCAS) Number.

Biometric ATM’s:

Enjoy secure and safe ATM transactions with BankIslami’s Biometric ATM based on BankIslami’s One Card, which provides maximum security since it uses the most authentic way to verify your identity. How? Apart from a pin-code, you can also use your finger or



thumb impression for identification purposes. After all, your fingerprints are yours and they cannot be copied. Amazing! Isn't it?

Built with the state-of-the-art technology, these ATMs are the first of its kind in Pakistan.

How to get your Biometric Registration:

While opening an Account with BankIslami, customer will be asked to register his Biometric identification against his/her CNIC. As per BIP standard, customer's left & right Thumb will be used for registration purposes.

Once customer's Account opening request gets approved, his/her Biometric record will be linked with his/her account through CNIC.

How to get One Card:

You can collect your One Card and your Personal Identification Number 'PIN' from the branch where you have opened the account

You will call 111-ISLAMI (475264) to activate your One Card.

How to Use Biometric ATM:

Insert your One Card in the Biometric ATM machine Place your Right/Left thumb impression on the space provided at the right side of the

machine. Select the type of account from which you want to withdraw funds Select the amount to withdraw Take your One Card Take your Cash Take your Receipt\

24/7 phone banking:

We are just a call away! We are there for you 24 hours a day, 7 days a week. We don't even take breaks on Holidays and Sundays. If you need any information on any of our Products & Services, if you need to lodge a complaint or if you just need to give feedback on any of our Products or Services, just dial 111-ISLAMI (475-264).



We promise you will get the same level of personalized service and attention that you would expect from our branches.

You may choose to speak to us at anytime, just dial 111-ISLAMI (475-264).

eStatement:

eStatement is a facility that not only helps you in viewing their statements whenever and wherever required but also brings an end to filing the Statements and keeping a paper stack. It is a convenience that offers you ease of use along with a worldwide access to your banking transactions.

How to Register?

Call 111 ISLAMI (111-475-264) Speak to a Phone Banking Officer Request for eStatement Activation Specify the Account Specify the Statement Frequency

Available Statement Frequencies:

Daily Weekly Monthly Semi Annually

Lockers:

Let us make this world safer and secure for you and your family. Our Safe Deposit Locker facility enables you to store your valuables in strong heat resistant steel lockers with 24 hour security. Be it jewellery, passports, share certificates or title deeds, you can rest assured that your valuables are not prone to loss, fire or theft. You can also nominate/authorize your dear and loved ones to operate the Locker. Now you can live a carefree & stress free life while we take care of your valuables while retaining your privacy.



Following are the key benefits that you will get out of using safe deposit locker facility:

Absolute privacy to operate your locker in a comfortable environment. A Locker custodian to offer friendly and personalized assistance. Maximum of four (4) deposit operators per Locker. Safety of your valuables from loss, fire and theft. Unlimited free visits to your Locker. Availability of different Locker sizes (Small, Medium and Large) to suit and

accommodate your needs. Takaful coverage of up to Rs. 500,000/- for Small lockers, Rs. 750,000/- for Medium

lockers and Rs.1, 000,000/- for large lockers. Locker Rent payable annually and in advance (as per schedule of charges). Key Deposit payable in advance as a condition for Locker facility.

Conclusion:Being an Islamic bank it has its advantages as well as disadvantages, but to succeed in the on going commercial and cooperative banking sector it is difficult to adjust according to the on going conditions as each and every aspect of an Islamic banking system are related to rules of shariah. But due to less burden this systems puts on the customer and also focuses on social welfare its spontaneous growth has given a hard challenge to the on going commercial banks which are now trying to do the same sort of planning as Islamic banks through their own ways which would result in an overall social focused and just banking system.


Project on Bank Al-Islami

Documents

Transcript of Project on Bank Al-Islami