Overview of Banking

Conventional Banking
Finance is the life blood of trade, commerce and industry. Now-a-days, banking sector acts as
the backbone of modern business. Development of any country mainly depends upon the
banking system. The term bank is either derived from Old Italian word banca or from a
French word banque both mean a Bench or money exchange table. In olden days, European
money lenders or money changers used to display (show) coins of different countries in big
heaps (quantity) on benches or tables for the purpose of lending or exchanging. A bank is a
financial institution which deals with deposits and advances and other related services. It
receives money from those who want to save in the form of deposits and it lends money to
those who need it.
What do banks do?
Banks play an important role as an intermediary, or go-between, in the financial system. They
have three main functions:
 Banks are where people can safely deposit their savings, which banks then pay
interest on. If there were no banks, people would have to store and protect their
savings themselves, which would involve major risks.
 Banks are largely responsible for the payments system. Electronic payments are
becoming more important as people use less cash. This means that banks are
processing more card payments, transfers, direct debits, etc. every day.
 Banks issue loans to both people and companies. Without banks, it would be very
hard for people to buy a home or start a business, or for companies to make
investments, for example.
Banks do a variety of other things, such as helping corporations with their, often more
complex, financial needs. This can range from the various ways to gain access to capital for
growth and investments, to assisting in mergers and acquisitions, to converting currencies.
Why banking is important?
Our economy couldn’t function without banks. By attracting savings and granting credit,
banks are the oil for the wheels that keep the economy turning. Without banks we’d have to
pay for everything with cash, which we’d have to save somewhere. That’s obviously very
risky. Without banks as a go-between, savers and borrowers would have to find each other
personally, and a single transaction between a saver and a borrower would be very costly: just
think of the fees you’d have to pay a solicitor to draw up a contract. Plus, the saver would be
assuming a big risk—if the borrower can’t repay, the saver would lose all their savings. A
bank lends money to a lot of people and companies. If some are unable to repay their loans,
the bank can absorb these losses and savers won’t be affected. Banks also help solve the issue
that customers generally want ready access to the money they deposit, while many loans
require long-term commitments, such as a 30-year mortgage for financing a house. So banks
borrow (i.e. hold customers’ deposits) short-term but lend long-term. By doing this they
transform debts with short maturities (deposits) into credits with very long maturities,
managing the risks associated and collecting the difference in the interest rate as profit. This
is known as “term transformation” and is a vital part of banking.

Islamic Banking
Islamic banking or Islamic finance or sharia-compliant finance is banking or financing
activity that complies with sharia (Islamic law) and its practical application through the
development of Islamic economics. Some of the modes of Islamic banking/finance include
Mudarabah (Profit and loss sharing), Wadiah (safekeeping), Musharaka (joint venture),
Murabahah (cost plus), and Ijar (leasing).
Islamic banking has been defined as banking in consonance with the ethos and value system
of Islam and governed, in addition to the conventional good governance and risk management
rules, by the principles laid down by Islamic Shariah. Interest free banking is a narrow
concept denoting a number of banking instruments or operations, which avoid interest.
Islamic banking, the more general term is expected not only to avoid interest-based
transactions, prohibited in the Islamic Shariah, but also to avoid unethical practices and
participate actively in achieving the goals and objectives of an Islamic economy.
Principles and philosophy of Islamic banking
The principles of Islamic Banking follow Shariah law, which is based on the Quran and the
Hadith, the recorded sayings and actions of the Prophet Muhammad. When more information
or guidance is necessary, Islamic bankers turn to learned scholars or use independent
reasoning based on scholarship and customs, while also ensuring their ideas do not deviate
from the fundamental principles of the Quran.
Islamic Shariah prohibits ‘interest’ but it does not prohibit all gains on capital. It is only the
increase stipulated or sought over the principal of a loan or debt that is prohibited. Islamic
principles simply require that performance of capital should also be considered while
rewarding the capital. The prohibition of a risk free return and permission of trading, as
enshrined in the Verse 2:275 of the Holy Quran, makes the financial activities in an Islamic
set-up real asset-backed with ability to cause ‘value addition’.
Islamic banking system is based on risk-sharing, owning and handling of physical goods,
involvement in the process of trading, leasing and construction contracts using various
Islamic modes of finance. As such, Islamic banks deal with asset management for the purpose
of income generation. They will have to prudently handle the unique risks involved in
management of assets by adherence to best practices of corporate governance. Once the
banks have stable stream of Halal income, depositors will also receive stable and Halal
income.
The forms of businesses allowed by Islam at the time the Holy Quran was revealed included
joint ventures based on sharing of risks & profits and provision of services through trading,
both cash and credit, and leasing activities. In the Verse II:275, Allah the Almighty did not
deny the apparent similarity between trade profit in credit sale and Riba in loaning, but
resolutely informed that Allah has permitted trade and prohibited Riba.
 Profit has been recognized as ‘reward’ for (use of) capital and Islam permits gainful
deployment of surplus resources for enhancement of their value. However, along with the
entitlement of profit, the liability of risk of loss on capital rests with the capital itself; no other
factor can be made to bear the burden of the risk of loss. Financial transactions, in order to be
permissible, should be associated with goods, services or benefits. At macro level, this
feature of Islamic finance can be helpful in creating better discipline in conduct of fiscal and
monetary policies.
Besides trading, Islam allows leasing of assets and getting rentals against the usufruct taken
by the lessee. All such things/assets corpus of which is not consumed with their use can be
leased out against fixed rentals. The ownership in leased assets remains with the lessor who
assumes risks and gets rewards of his ownership.
History and evolution of Islamic Banking
The origin of Islamic banking dates back to the very beginning of Islam in the seventh
century. The Prophet Muhammad's first wife, Khadija, was a merchant, and he acted as an
agent for her business, using many of the same principles used in contemporary Islamic
banking. In the middle Ages, trade and business activity in the Muslim world relied on
Islamic banking principles, and these ideas spread throughout Spain, the Mediterranean and
the Baltic States, arguably providing some of the basis for western banking principles. In the
1960s to the 1970s, Islamic banking resurfaced in the modern world.
In the late 19th century Islamic Modernists reacted to the rise of European power and
influence and its colonization of Muslim countries by reconsidering the prohibition on
interest and whether interest rates and insurance were not among the "preconditions for
productive investment" in a functioning modern economy. Syed Ahmad Khan, argued for a
differentiation between sinful riba "usury", which they saw as restricted to charges on lending
for consumption, and legitimate non-riba "interest", for lending for commercial investment.
However, in the 20th century, Islamic revivalists/Islamists/activists worked to define all
interest as riba, to enjoin Muslims to lend and borrow at "Islamic Banks" that avoided fixed
rates. By the 21st century this Islamic Banking movement had created "institutions of
interest-free financial enterprises across the world “The movement started with activists and
scholars such as Anwar Qureshi, Naeem Siddiqui, Abul A'la Maududi, Muhammad
Hamidullah, in the late 1940 and early 1950s.They believed commercial banks were a
"necessary evil," and proposed a banking system based on the concept of Mudarabah, where
shared profit on investment would replace interest. Further works specifically devoted to the
subject of interest-free banking were authored
The first model of Islamic banking system came into picture in 1963 in Egypt. Ahmad Al
Najjar was the chief founder of this bank and the key features are profit sharing on the non
interest based philosophy of the Islamic Shariah. These banks were actually more than
financial institutions rather than commercial banks as they pay or charge interest on
transactions. In 1974, the Organization of Islamic Countries (OIC) had established the first
Islamic bank called the Islamic Development Bank or IDB. The basic business model of this
bank was to provide financial assistance and support on profit sharing. By the end of 1970,
several Islamic banking systems have been established throughout the Muslim world,
including the first private commercial bank in Dubai(1975), the Bahrain Islamic bank(1979)
and the Faisal Islamic bank of Sudan (1977).
 Global Islamic Banking Industry and Pakistan

Global Industry
Islamic banking grew at an annual rate of 17.6% between 2009 and 2013, faster than
conventional banking, and is estimated to be $2 trillion in size, but at 1% of total world, still
much smaller than the conventional sector. As of 2010, Islamic financial institutions operate
in 105 countries. Statistics differ on which country has the largest Islamic banking sector.
According to the 2016 World Islamic Banking Competitiveness Report, Saudi Arabia,
Malaysia, United Arab Emirates, Kuwait, Qatar, and Turkey represented over 87% of the
international Islamic banking assets.(A 2006 report by ISI Analytics also lists Saudi Arabia at
the top and Iran as insignificant.) But according to Ibrahim Warde, Shia-majority Iran
dominates Islamic banking with $345 billion in Islamic assets; Saudi Arabia with $258
billion, Malaysia $142 billion, Kuwait with $118 billion and UAE with $112 billion. And
according to Reuters, Iranian banks accounted for "over a third" of the estimated worldwide
total of Islamic banking assets, (although sanctions have hurt Iran's banking industry and "its
Islamic financial system has evolved in ways that will complicate ties with foreign banks").
According to the latest central bank data, Iran's banking assets as of March 2014 totalled
17,344 trillion riyals or $523 billion at the free market exchange rate. According to The
Banker, as of November 2015, three out of ten top Islamic banks in the world based on return
on assets were Iranian. The estimated 17 per cent annual growth rate experienced between
2008 and 2013, according to the consultancy EY.
2016 has been another year of slowdown for the global Islamic Financial Services Industry
(IFSI) – in USD terms, the size of the IFSI has not changed much over the last year: The total
Islamic banking assets increased from USD 1.4 trillion to USD 1.5 trillion, the volume of
ṣukūk outstanding increased (USD 318.5 billion), but Islamic funds’ assets decreased (USD
56 billion); takāful contributions increased slightly (USD 25 billion).

Future Growth
Sharia-compliant commercial banking assets are still set to increase at a compound annual
growth rate of 9.8 per cent between 2014 and 2020, according to data from the Dubai Islamic
Economic Development Centre (DIEDC). There are about US$1.35 trillion of Sharia-
compliant commercial banking assets outstanding globally, roughly equivalent to 1.3 per cent
of global banking assets, according to the DIEDC’s State of the Global Islamic Economy
Report, released yesterday. That is set to grow to $2.6tn by 2020 – a compound annual
growth rate of 9.8 per cent annually, which is a considerably faster rate of loan growth than
that in the conventional banking industry in the UAE.
By 2020, Participation banking profit pool would reach US$30.3b, out of which US$27.8b is
expected to come from the QISMUT markets. Primary growth drivers will be regionalization,
digital acceleration and innovative business models for emerging markets. Based on banking
sector asset projections, key players identified on account of “average annual growth rate”
and “banking sector assets” are Saudi Arabia, Qatar, Pakistan, UAE and Turkey. On the other
hand, for Participation banking, Saudi Arabia, Kuwait, Bahrain and Qatar will be the major
players in terms of banking market share by 2020.

Islamic banking industry of Pakistan

Our founder Quaid-e-Azam was very much interested in the Islamic banking in our country.
The prime objective of state bank is to remove interest system from the Pakistan. In 1970s
Islamic banking was not famous, but at the start of twenty century it is very common in all
over the world. Islamic banking is flourishing dynamically in Pakistan like other countries,
since January, 1981. As of end June 2016, the industry's asset base reached Rs 1,745 billion,
which is equivalent to 11.4 percent of the country's banking system's assets. Similarly, the
Islamic banking industry's deposits increased to Rs 1,461 billion constituting 13.2 percent of
the overall banking industry's deposits. It is growing with the ratio of 14.1%.
Evolution of Islamic Banking in Pakistan
Steps for Islamization of banking and financial system of Pakistan were started in 1977-78.
Pakistan was among the three countries in the world that had been trying to implement
interest free banking at comprehensive/national level. But as it was a mammoth task, the
switchover plan was implemented in phases. The Islamization measures included the
elimination of interest from the operations of specialized financial institutions including
HBFC, ICP and NIT in July 1979 and that of the commercial banks during January 1981 to
June 1985. The legal framework of Pakistan's financial and corporate system was amended
on June 26, 1980 to permit issuance of a new interest-free instrument of corporate financing
named Participation Term Certificate (PTC).
However a significant attempt was made in the mid-80s to convert the banking system to an
Islamic banking system. The Banking Companies Ordinance (BCO, 1962) was amended to
accommodate non-interest based transactions and the industry was given a specific timeline
to convert to the non-interest based system. In early 90s, the whole exercise was challenged
in the Federal Shariat Court which declared some products and processes being used by the
banking system un-Islamic. Prior to the re-launch, to study the experience of different
countries in Islamic banking, a delegation from Ministry of Finance (MoF), led by Advisor to
Finance Minister, Dr. Tariq Hassan visited Malaysia, Egypt and Saudi Arabia in September
2001 Based on the recommendations of this delegation and the past experience of SBP, the
policies for promotion of Islamic banking were formulated. Accordingly, State Bank of
Pakistan issued detailed criteria for setting up of Islamic banks in December 2001.Al-Meezan
Investment Bank Limited applied under the criteria issued by SBP to convert itself into an
Islamic commercial bank. They were issued a license in the name of Meezan Bank Limited to
operate as full-fledged Islamic bank in January, 2002.
The Government as also the State Bank are mainly concerned with stability and efficiency of
the banking system and safeguarding the interests, particularly, of small depositors. With this
concern in mind it has been decided to operate Islamic banking side by side with traditional
banking. The approach is to institute best practice legal, regulatory and accounting
frameworks to support Islamic banks and investors alike. The year 2002-2003 witnessed
strengthening measures taken in the areas of banking, non-bank financial companies and the
capital markets.
Present and Future Growth
At the end of the year 2003 only one bank operated as a full-fledged Islamic bank and three
conventional banks were operating Islamic banking branches. Today there are 6 full fledge
licensed Islamic banks (IBs) and 16 conventional banks have licenses to operate dedicated
Islamic banking branches (IBBs).The total assets of the Islamic banking industry are over Rs
1,745 billion as of 30th June, 2016 which accounts for a market share of 13.2 % of total
banking industry assets. The market share of deposits stands at 11.4%. Total branch network
of the industry comprises of more than 2146 branches in 98 districts across the country
covering all the four provinces of the country and AJK.
The fast paced expansion of the industry's outreach could among others be attributed to the
supportive and enabling role of SBP, which was voted as the best central bank in the world in
2015 for Promoting Islamic Finance in an international poll conducted by Islamic Finance
News, an arm of Redmoney Group Malaysia, the report added. SBP taking cues from the
current growth trajectory coupled hoped that the strong commitment being demonstrated by
the central bank and government gives optimism that the Islamic Banking Industry Strategic
Plan 2014-18 target of increasing the market share to 15 percent by 2018 will be conveniently
achieved.
 Bank Islami Pakistan

Historical Background and Idea

The epochal idea of BankIslami was conceptualized by Jahangir Siddiqui & Company
Limited and Randeree family 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
BankIslami 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 BankIslami by investing 18.75% in the total Capital.
The State Bank of Pakistan issued a No Objection Certificate in no time on August 19, 2004
and BankIslami Pakistan Limited, the second full-fledge Islamic Commercial Bank in
Pakistan, was incorporated on October 18, 2004 in Pakistan. BankIslami 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.
BankIslami Pakistan Limited made a public offering of Rs. 400 Million, at par, from 6th to
8th March 2006. This was the first primary issue by a Bank in over a decade in Pakistan. The
Initial public offering (IPO) of BankIslami 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.

Achievements and Expansion

The State Bank of Pakistan declared BankIslami Pakistan Limited as a Scheduled Bank with
effect from March 17, 2006. BankIslami started its Banking operations on 7th April 2006
with its first branch in SITE, Karachi. By the end of 2006, the Bank had 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. By the end of 2014, the Bank has achieved the target of 213 branches in 80 cities
nationwide. This gave BankIslami the distinction of having the fastest expanding network in
Pakistan as well as offering the widest network by any Islamic Bank. On May 7. 2015 State
Bank of Pakistan approved the amalgamation of KASB Bank with and into BankIslami. With
this amalgamation all 104 branches of KASB Bank were merged into BankIslami making it
the country's 11th largest banking network with 317 branches in 93 cities in a short span of 9
years.
List of Achievements
 Concept paper of Islamic Bank presented to Sponsors; JS Group and Randeree family
 Application for the license of an Islamic Bank was submitted to SBP
 BankIslami received the No Objection Certificate from SBP
 BankIslami became a legal entity after SECP granted it an incorporation certificate
 SBP Governor, Dr. Ishrat Hussain issued Islamic Banking license to BankIslami
 Dubai Bank became founding shareholder of BankIslami by investing 18.75% in the
total Capital
 BankIslami share debuted on the Karachi Stock Exchange
 BankIslami's three day Initial Public Offering (IPO) was initiated and got
oversubscribed by 9 times
 State Bank of Pakistan declared BankIslami Pakistan Limited as a Scheduled Bank
 BankIslami started commercial operations from its 1st branch at SITE, Karachi
 BankIslami became the First bank in Pakistan & Asia and the Second Bank in the
World to install BIOMETRIC ATM
 BankIslami became the First bank in Pakistan to launch Internet banking from start of
operations
 BankIslami's second and third branch opened simultaneously in Clifton and Korangi
Industrial Area in Karachi
 The Fourth branch of BankIslami located on 26th Street of Phase V, D.H.A opened its
doors for customers
 The official inauguration of BankIslami was conducted at the Governor House, Sindh
 BankIslami's Shaheed -e- Millat branch located at Adam Arcade, BMCHS, Shaheed-
e-Millat Road, Karachi starts operations
 State Bank's Director of Islamic Banking, Mr Pervez Said inaugurated the induction
ceremony of the first Trainee Officers batch of BankIslami
 Phone Banking services were launched by BankIslami
 Sixth branch of BankIslami opened on Rashid Minhas Road, Karachi
 BankIslami's North Nazimabad branch started operations. It was the 7th branch
opened by the Bank
 BankIslami formally inaugurated its eighth branch located in Gulshan-e-Maymar
 BankIslami went nationwide with the opening of its 9th branch on Jinnah Road,
Quetta. This was BankIslami's first branch outside Karachi
 BankIslami opened its 10th Branch in Baqai Medical University, Karachi
 BankIslami signed ORIX network for its '1 Card'
 BankIslami became the first Bank in Pakistan to sign contract with Haydrian for
'XM3", a state of the art Anti Money Laundering (AML) software
 BankIslami launched home financing product "MUSKUN"
 BankIslami's Islamabad branch opened in Blue Area, Islamabad
 Wah Cantt Branch of BankIslami was opened
 Karachi Stock Exchange Branch of BankIslami was opened
 BankIslami signed agreement for a state of art Shariah compliant Banking system
software "iMAL" with Path solutions
 Mirpur (Azad Kashmir) Branch of BankIslami was opened
 BankIslami deployed its Deposit ATM machine. Based on GBNA technology, the
ATM is capable of accepting 100 notes at a time
 BankIslami bought JS Finance Limited, a Modaraba management company and
renamed it as BankIslami Modaraba Investments Limited
 BankIslami opened its branch in Lahore. This was the 15th Branch of BankIslami and
its first in Lahore
 16th branch of BankIslami opened in Jodia Bazar, Karachi
 BankIslami completed its First Investment Banking transaction by issuing privately
placed SUKUK of Rs. 1.2 Billion for PEL
 17th branch of BankIslami opened in Pishin 2007-11-26 18th branch of BankIslami
opened in Sukkur
 19th branch of BankIslami opened in DHA, Lahore
 21st branch of BankIslami opened in Hyderabad
 20th branch of BankIslami opened in Chaman
 BankIslami led managed a Consortium to successfully achieved the financial close of
a landmark Investment Banking deal of SSGC Sukuk of Rs. 5 Billion
 22nd branch of BankIslami opened in Muslim Bagh
 23rd branch of BankIslami opened in Qila Saifullah
 24th branch of BankIslami opened at Cloth Market, Karachi
 25th branch of BankIslami opened in Multan
 26th branch of BankIslami opened at Bank Square Road, Larkana
 27th branch of BankIslami opened in Faisalabad
 Nine branches of BankIslami opened in different cities of Pakistan. The branch
network grew to 36 branches in 23 Cities of Pakistan
 BankIslami's branch network expansion plan of opening 30 branches and 32 sub
branches in 2008 approved by State Bank of Pakistan
 BankIslami installed the first ever ATM in an Islamic School at Darul Uloom,
Karachi
 37th branch of BankIslami opened at DHA, Phase IV, Karachi
 BankIslami's Response to Fatwa against Islamic Banking.
 BankIslami posted an operating profit of Rs. 19.210mn in 2nd quarter of 2008
 BankIslami announces right issue of 23.36% subject to SECP approval.
 38th branch of BankIslami opens on UP More Road, Karachi
 BankIslami opens branches at Kotli, Islamgarh and Sharea-e-Faisal Road, Karachi.
 BankIslami opens its sub branch in Shadman Town No.1, North Nazimabad Karachi.
 Sub Branch of BankIslami opens in Khyber Bazar, Peshawar
 BankIslami opened its 50th Branch today. It has been the fastest growth by any Bank
in Pakistan.
 BankIslami opens seven new branches nationwide.
 Bankislami crosses 50 branches mark by opening its branch at Nazimabad Block A
Karachi.
 BankIslami opens ten Online branches this month.
 BankIslami signs strategic cooperation with Pak Qatar Takaful Company for Takaful
cover to BankIslami Auto Ijarah customers.
 BankIslami creates 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.
 BankIslami crosses 100,000 customer base
 BankIslami sign NDA with Citibank for Auto Financing Portfolio
 PACRA upgrades entity rating of BankIslami Pakistan Limited.
 BankIslami witnesses phenomenal increase of 32% in Deposits and 39% increase in
Customer base over the same period last year.
 Successful Deployment in all branches of iMal, World's #1 Islamic Banking software
 BIPL reports profit of Rs. 46.55 MN for the year ending December 31, 2011.
 BankIslami signs deal for acquisition of Citibank House Financing Portfolio
 Visa Debit Cards launched
 BankIslami launches BankTakaful product, a life Takaful product in collaboration
with Pak Qatar Takaful Company Limited
 BankIslami become the first Bank in Pakistan to launch Card less ATM's. Card less
ATM's provides customers to use their thumb impression for accessing their accounts
 BankIslami branch network is now 213 branches in 80 cites
 BankIslami, in Stock Market, announced issuing of 432 million shares at par to raise
its capital to Rs. 10 billion & meet Minimum Capital requirement (MCR).
 State Bank of Pakistan approves the amalgamation of KASB Bank with and into
BankIslami Pakistan Limited
 BankIslami branch network increases to 317 branches in 93 cities making it the 11th
largest banking network in just 9 years.
 Launched Print & Radio campaign of the amalgamation & smooth merger of KASB
Bank with & into BankIslami.
 Selected as the winner of the "Best Employer of the Year" Award in "Islamic Finance
Awards 2015" organized by Emend Group.
 Religious scholar- Maulana Tariq Jameel visited BankIslami for Ramazan special
Bayan.
 BankIslami officially launched its presence on Social Media Platform (i.e. Facebook,
LinkedIn, Twitter, Instagram, Daily motion & YouTube) to disseminate BankIslami
updates and ensure efficient and timely Customer Service through all means.
 BankIslami entered into Strategic partnership with Bank of Azad & Jammu Kashmir
(BAJK) for receiving Home Remittances through MoneyGram International.
 BankIslami won 2nd prize in the "Best Stall" Competition of State Bank of Pakistan
(SBP) Housing Finance awareness program held at Civic Centre, Hyderabad
 Took active participation in the First International Conference- CEIF held at
IMSciences, Peshawar & Signed MoU with IMSciences.
 Awarded "Best Islamic Home Finance Award" at "Round Table Conference (RTC) -
3" held at Islamabad.
 Signed an agreement with Al-Haj FAW Motors Pvt.
 Signed an agreement with KFC Pakistan, to provide amazing Discount Deals to all
BankIslami Visa Cardholders.
 BankIslami and Bank of Azad Jammu Kashmir (BAJK) signed the Home Remittance
Agreement for facilitating the transfer and disbursement of the remittances of
Overseas Pakistanis in Azad Jammu Kashmir.
 Signed an agreement with Subway and offered Discount Deals exclusively for
BankIslami Visa Debit Card at Selected Outlets of Subway- Karachi.
 Participated in Dream Home Expo 2016, organized by Jang Media Group in
Islamabad from 2nd April to 4th April, 2016 at Pak China Expo Center- Islamabad.
  BankIslami entered into a Strategic Alliance with Honda Pakistan & offered priority
delivery & free oil for first oil change for our Valued BankIslami customers.
 BankIslami was awarded with Service Excellence Award by MoneyGram
International.
 BankIslami has signed a Memorandum of Understanding (MoU) with Premier
Systems (Pvt) Ltd, Audi´s general importer in Pakistan (Audi Pakistan); Pakistan´s
No. 1 luxury premium automobile brand.
 BankIslami held "Strategic Business Development" Seminar at Karachi, Lahore,
Islamabad, Multan & Quetta.
 BankIslami received a Memento from 1Link for its contribution towards Pakistan's
First Domestic Payment Scheme -PayPak.
 Signed an agreement with Akhuwat Foundation, an Interest free Micro-finance NGO.
 Launched first ever 360 degree Media Campaign on TV, Radio, Print, OOH & Digital
Marketing during Ramazan.
 Launched First ever TV Commercial across 17 Leading TV Channels during
Ramazan.
 Sept 2016- Launched its first ever mobile application named as "mBankIslami"
providing an access to convenient, secure and personalized service at fingertips.
Customers can avail this facility by downloading it from App store (if iPhone user)
and Google play-store (if android user).
 BankIslami Pakistan Limited receives a Runner-Up Award for the "Transaction of the
Year" at the 13th CFA Annual Excellence Award Ceremony held in Karachi.

Vision, Mission and Core Values

Our Vision
The vision of bank islami is to be recognized as the leading Authentic Islamic Bank.
Our Mission
The Mission of BankIslami 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 BankIslami remains
committed to becoming an employer of choice, attracting, nurturing and developing
talent in a transparent and performance driven culture.
Our Core Values
BankIslami is strongly committed towards its core values of: Product authenticity, Customer
focus, Meritocracy, Integrity, Team work, Humility and Innovation
Shariah Board
BankIslami conforms to Shariah compliance standards as approved by its Shariah
Supervisory Board. The profiles of members of its Shariah Supervisory Board are as follows:
Mufti Irshad Ahmad Aijaz (Chairman, Shariah Supervisory Board)
Mufti Irshad Ahmad Aijaz is the Chairman of the Shariah Supervisory Board. He graduated
from Jamiat-ul-Uloom Islamiyyah, Binnori Town, Karachi and obtained his Shahadat-ul-
Aalamia (Masters in Arabic and Islamic Studies) from there. Afterwards, he completed his
Takhassus fi al-Iftaa (Specialization in Islamic Jurisprudence and Fatwa) from Jamia Dar-ul-
Uloom, Karachi. He has passed country’s first Islamic Finance course "Contemporary
Business and Banking and its critical evaluation in the light of Shariah" offered by the Centre
for Islamic Economics, Jamia Dar-ul-Uloom, Karachi, Pakistan, in 1994. He has also
completed his MBA program from a leading private university in Karachi, Pakistan.
He currently holds advisory position in following Institutions: Member, AAOIFI Shariah
Standard Committee – Karachi Chairman, Shariah Supervisory Board- Summit Bank Limited
Shariah Advisor of Allied Rental Modaraba Member, Shariah Board- Standard Chartered
Bank (Pakistan) Ltd. Shariah Advisor of Fortune Islamic Financial Services Shariah Advisor
of Allied Rental Modaraba Member, Shariah Committee of Barakah Group – Australia
Consultant, Shariah Review Bureau – Bahrain Honorary Chairman, Shariah Supervisory
Board of Wasil Foundation (Micro finance) He regularly delivers lectures on Islamic
Economics and Finance at different forums and educational institutions including National
Institute of Banking and Finance (State Bank of Pakistan) and Centre of Islamic Economics
(a division of Jamia Dar-ul-Uloom, Karachi).
Mufti Muhammad Husain Khaleel Khail (Member, Shariah Supervisory Board)
Mufti Muhammad Husain is a prominent scholar in the field of Islamic jurisprudence. He has
been teaching Islamic studies including Fiqh and Fatwa for years. He has undertaken research
work in various topics including economic thoughts in Islam, financial markets, modern
economic and financial issues and Islamic banking and finance. He is also a member of
Shariah Supervisory Board of Halal Foundation, the first Shariah Certification and Research
body in Pakistan. His research works include Ushr obligation, Takaful on the basis of Waqf,
Shariah rules of wealth earned through impermissible sources and rulings on status of juristic
person in Islam. He has authored several articles and issued verdicts (Fatwas) on various
issues. He is associated with Jamia-tur-Rasheed, Karachi as a senior Mufti in Darul Iftaa and
lecturer in department of Fiqhul Muaamlaat.
Mufti Javed Ahmad (Resident Shariah Board Member)
Mufti Javed Ahmad has completed his Shahadat-ul-Alamia (Masters in Arabic and Islamic
Studies) from Jamia Dar-ul-Uloom, Karachi, and Takhassus fi Fiqh-el-Muamlat
(Specialization in Islamic Jurisprudence of trade and finance) from Jamia-tur-Rasheed,
Karachi. He is also a Certified Shariah Advisor and Auditor (CSAA) from AAOIFI, Bahrain
and Chartered Islamic Finance Professional (CIFP) from INCEIF, Malaysia. He has
completed M.A. Economics from Karachi University. He has undertaken research work in
numerous topics including Islamic Banking and Finance. Prior to joining BankIslami, he was
associated with Ernst & Young Ford Rhodes Sidat Hyder as 'Senior Shariah Consultant'.
Board of Directors
The Board of Directors of BankIslami comprises of eminent individuals. These include Mr
Ali Hussain, Mr. Ali AlShamali, Dr. Amjad Waheed, Mr. Fawad Anwar, Mr. Hasan A.
Bilgrami, Mr. Noman Yakoob and Mr. Siraj Dadabhoy. Following are the members of our
Board of Directors:
Mr Ali Hussain (Chairman)
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. Fawad Anwar (vice chairman)
Mr. Fawad Anwar is the Managing Director of AlKaram Textile Mills (Private) Limited,
which is part of one of the most renowned Business groups in Pakistan, the AlKaram Group.
Mr. Anwar serves as an Independent Director on BankIslami’s Board. He has over 20 years
of professional experience. Mr. Anwar has done his MBA from Drexel University, USA and
BBA from Temple University, USA.
Mr. Hasan A. Bilgrami (CEO)
Mr. Hasan A. Bilgrami is the Founding Chief Executive Officer and Director of BankIslami.
His association with BankIslami 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 30 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 KSB Pumps Limited as well as Chairman of its Audit
Committee. Mr. Bilgrami 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, National Refinery Limited and BankIslami's
subsidiary, BankIslami Modaraba Investment 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.
Dr Amjad Waheed (CFA)
Mr. Waheed is the Chief Executive Officer of NBP Fullerton Asset Management Limited
(NAFA), which is a subsidiary of National Bank of Pakistan with Fullerton Fund
Management Company of Singapore as a joint venture partner. Before joining NAFA, he had
been the Head of Equity Mutual Funds & Portfolios at Riyadh Bank, Saudi Arabia, Head of
Asset Management at NIT, and Chief Operating Officer of FC-ABN AMRO Equities. He
holds a Doctorate in Business Administration with a major in Investments and Finance from
Southern Illinois University, USA and is also a Chartered Financial Analyst (CFA).
Mr. Ali AlShamali
Mr. Ali AlShamali is the Vice President, Credit and Risk at Amlak Finance PJSC, U.A.E. He
serves as an Independent Director on BankIslami’s Board. Mr. AlShamali has over 17+ years
of experience in Credit and risk management. Before his current position, he worked as Head
of Credit and Risk at Amlak Finance and also in the Credit department of the Emirates Bank
International. Mr. AlShamali holds a MBA degree from University of Wollongong Dubai and
Bachelors in Science degree from Seattle University, U.S.A. In addition to this, he has
attended various courses and seminars.
Mr. Noman Yakoob
Mr. Yakoob is the Director of Al-Karam Textile Mills Limited where he overlooks the
financial matters of the Company. He has previously worked as Director of Amna Industries
Limited. He is currently serving as Vice-President Landhi Association of Trade and Industry
(LATI). Mr. Yakoob has done his BSc (Hons) from Lahore University of Management
Sciences (LUMS) and MSc from Kingston University, London.
Mr. Siraj Dadabhoy
Mr. Siraj Dadabhoy has more than 25 years of experience in the real estate and financial
industries in a range of leadership roles. Mr. Dadabhoy is a founding partner and Executive
Chairman of AION Partners, a New York based real estate operating and investment
Management Company. Mr. Dadabhoy is also the founder and Managing Director of AION
Global; an owner, operator and developer of real estate in the U.K. Additionally, Mr.
Dadabhoy serves as a member of the board of directors of BankIslami and TPL Properties in
Pakistan. Mr. Dadabhoy is a 1988 graduate of Indiana University, with a Bachelor of Science
in Accounting and Finance. He is also a qualified Certified Public Accountant.
Financial Highlights
Product, Services & Department
The organization of Bank Islami is a complete banking system covering modern technologies
like ATM and complete automated operations. This banking system is collection of
interrelated departments that works together to achieve the objectives of the organization.
Bank Islami is a hierarchical system in that it includes other sub departments and these are
integrated to work together.

Departments
Bank Islami operations are divided into two different departments.
 Personnel and Consumer Banking
 Business Banking

Personnel and Consumer Banking

Consumer banking is the provision of services by a bank to individual consumers, rather than
to companies, corporations or other banks. Services offered include savings and transactional
accounts, mortgages, personal loans, debit cards, and credit cards. The term is generally used
to distinguish these banking services from investment banking, commercial banking or
wholesale banking. It may also be used to refer to a division or department of a bank dealing
with retail customers.
Bank Islami is offering different types of financing in consumer banking. This type of
financing are based upon Islamic mode of financing. The main purpose of this department is
to extend loans to its clients for the productive purpose. In consumer Banking Bank Islami is
offering 6 different types of products and they are:
 Bank Account for Everyone (8 different types of accounts for customers)
 MUSKUN Home Financing
 Islami Auto Finance
 BankIslami Takaful
 Home Remittance
 Alternate Distribution Channels include services like Online and internet banking,
IBFT, visa/debit card, ATM services and 24/7 phone banking.

Bank Accounts
Bank Islami is offering wide range of different purpose accounts for its customers. These
accounts can be classified as
 Islami Current Account
 Islami Bachat Account
 Islami Mahana Munafa account
 Islami Amadani certificate
 Islami Foreign Currency account
 Islami Sahulat account
 Islami Asaan account
 Islami Dollar Bahat account
Islami Current Account
With 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, customer has access to entire online network of for convenience
of instant and secure intercity transactions. So enjoy full control over your funds in a Shariah
compliant manner.
 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
 Bank Islami Visa Debit Card
 Access to all ATMs linked to MNET and 1 Link throughout Pakistan
 Inter Bank 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’s different from conventional current account?
BankIslami'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.
Documents required to open an account
The documents required vary with the customer category as follows:
Salaried Individual /Joint Account Holders
 Filled Account Opening Form
 Computerized National Identity Card (CNIC)
 Passport (for Non-residents only)
 Employment proof (Pay slip, Employment letter etc.)

Sole Proprietors
 Filled Account Opening Form
 Computerized National Identity Card (CNIC)
 Passport (for Non-residents only)
 NTN Certificate
 Partnership/Club/Society/Association/NGO/Trust
 Certified Copy of Partnership/ Trust Deed
 Certificate of Registration
 Signatures of all Partners on letter of Partnership
 Certified copy of rules
 Certified copy of resolution
 Copy of by-laws
 Copy of NTN Certificate
 CNICs of all Partners
 Passports (for Non-residents only)

Limited Company
 Certificate of Incorporation
 Certificate for Commencement of Business (PLC only)
 Memorandum of Association
 Articles of Association
 Current list of Directors
 Copy of Board Resolution
 CNICs of all Directors
 Copy of NTN Certificate and Form 29

Islami Bachat Account

Islami Bachat account is of bundle of benefits. It helps customer to keep up with tradition of
savings with the convenience and safety of a professional and understanding bank. Also,
customer can earn highly attractive profits on customer savings with the flexibility of making
as many transactions on customer 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
Islami Bachat Account offers you the following key salient features:

 Monthly profit/loss payment on Average balance

 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 online network of 317 Branches in 93 cities
 Unlimited over the counter deposits and withdrawals, free of charge
 No restrictions on intercity transactions
 Visa Debit card facility available (charges apply as per schedule of charges)
 Access to all ATMS linked to MNET and 1 Link throughout Pakistan
 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’s different from conventional account?

BankIslami'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

Documents required to open an account

The documents required vary with the customer category as follows:
Salaried Individual /Joint Account Holders
 Filled Account Opening Form
 Computerized National Identity Card (CNIC)
 Passport (for Non-residents only)
 Employment proof (Pay slip, Employment letter etc.)

Sole Proprietors
 Filled Account Opening Form
 Computerized National Identity Card (CNIC)
 Passport (for Non-residents only)
 NTN Certificate

Partnership/Club/Society/Association/NGO/Trust
 Certified Copy of Partnership/ Trust Deed
 Certificate of Registration
 Signatures of all Partners on letter of Partnership
 Certified copy of rules
 Certified copy of resolution
  Copy of by-laws
 Copy of NTN Certificate
 CNICs of all Partners
 Passports (for Non-residents only)

Limited Company
 Certificate of Incorporation
 Certificate for Commencement of Business (PLC only)
 Memorandum of Association
 Articles of Association
 Current list of Directors
 Copy of Board Resolution
 CNICs of all Directors
 Copy of NTN Certificate and Form 29

Islami Mahana Munafa Account

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’s different from conventional account?

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:

 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 the 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

Documents required to open an account

The documents required vary with the customer category as follows:
Salaried Individual /Joint Account Holders
 Filled Account Opening Form
 Computerized National Identity Card (CNIC)
 Passport (for Non-residents only)
 Employment proof (Pay slip, Employment letter etc.)

Sole Proprietors
 Filled Account Opening Form
 Computerized National Identity Card (CNIC)
 Passport (for Non-residents only)
 NTN Certificate

Partnership/Club/Society/Association/NGO/Trust
 Certified Copy of Partnership/ Trust Deed
 Certificate of Registration
 Signatures of all Partners on letter of Partnership
 Certified copy of rules
 Certified copy of resolution
  Copy of by-laws
 Copy of NTN Certificate
 CNICs of all Partners
 Passports (for Non-residents only)

Limited Company
 Certificate of Incorporation
 Certificate for Commencement of Business (PLC only)
 Memorandum of Association
 Articles of Association
 Current list of Directors
 Copy of Board Resolution
 CNICs of all Directors
 Copy of NTN Certificate and Form 29

Islami Amadani Certificate

BankIslami's Islami Amadni Certificate 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.

Documents required to open an account

The documents required vary with the customer category as follows:
Salaried Individual /Joint Account Holders
 Filled Account Opening Form
 Computerized National Identity Card (CNIC)
 Passport (for Non-residents only)
  Employment proof (Pay slip, Employment letter etc.)

Sole Proprietors
 Filled Account Opening Form
 Computerized National Identity Card (CNIC)
 Passport (for Non-residents only)
 NTN Certificate

Partnership/Club/Society/Association/NGO/Trust
 Certified Copy of Partnership/ Trust Deed
 Certificate of Registration
 Signatures of all Partners on letter of Partnership
 Certified copy of rules
 Certified copy of resolution
 Copy of by-laws
 Copy of NTN Certificate
 CNICs of all Partners
 Passports (for Non-residents only)

Limited Company
 Certificate of Incorporation
 Certificate for Commencement of Business (PLC only)
 Memorandum of Association
 Articles of Association
 Current list of Directors
 Copy of Board Resolution
 CNICs of all Directors
 Copy of NTN Certificate and Form 29

Islami Foreign Currency Account

BankIslami 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.
 Safe Deposit Lockers
 Personalized service from Customer Relationship Officers
 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’s different from conventional account?
BankIslami’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.
Documents required to open an account
The documents required vary with the customer category as follows:
Salaried Individual /Joint Account Holders
 Filled Account Opening Form
 Computerized National Identity Card (CNIC)
 Passport (for Non-residents only)
 Employment proof (Pay slip, Employment letter etc.)

Sole Proprietors
 Filled Account Opening Form
 Computerized National Identity Card (CNIC)
 Passport (for Non-residents only)
 NTN Certificate

Partnership/Club/Society/Association/NGO/Trust
 Certified Copy of Partnership/ Trust Deed
 Certificate of Registration
 Signatures of all Partners on letter of Partnership
 Certified copy of rules
 Certified copy of resolution
 Copy of by-laws
 Copy of NTN Certificate
 CNICs of all Partners
 Passports (for Non-residents only)

Limited Company
 Certificate of Incorporation
 Certificate for Commencement of Business (PLC only)
 Memorandum of Association
 Articles of Association
 Current list of Directors
 Copy of Board Resolution
 CNICs of all Directors
 Copy of NTN Certificate and Form 29
Islami Sahulat Account
BankIslami introduces Islami Sahulat Account which provides you convenience like never
before. It is based on the Shariah compliant mode of Mudarabah and comes with the
following FREE services.
The Islamic Sahulat Account offers you the following key salient features:

 FREE Cheque Book

 FREE Pay Order
 FREE Inward Clearing
 FREE Online Banking
 FREE Internet Banking
 FREE e-Statement

The monthly average balance condition of 25,000 is applied on free services.

How it’s different from conventional account?
BankIslami's Islami Sahulat 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 the 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.

Documents required to open an account

The documents required vary with the customer category as follows:
Salaried Individual /Joint Account Holders
 Filled Account Opening Form
 Computerized National Identity Card (CNIC)
 Passport (for Non-residents only)
 Employment proof (Pay slip, Employment letter etc.)
 Sole Proprietors
 Filled Account Opening Form
 Computerized National Identity Card (CNIC)
 Passport (for Non-residents only)
 NTN Certificate

Partnership/Club/Society/Association/NGO/Trust
 Certified Copy of Partnership/ Trust Deed
 Certificate of Registration
 Signatures of all Partners on letter of Partnership
 Certified copy of rules
 Certified copy of resolution
 Copy of by-laws
 Copy of NTN Certificate
 CNICs of all Partners
 Passports (for Non-residents only)

Limited Company
 Certificate of Incorporation
 Certificate for Commencement of Business (PLC only)
 Memorandum of Association
 Articles of Association
 Current list of Directors
 Copy of Board Resolution
 CNICs of all Directors
 Copy of NTN Certificate and Form 29

Islami Asaan Account

Islami Asaan Account is a No Minimum Balance account available in the following Variants:

 Current
 Bachat/ Saving
 Sahulat

Islami Asaan Account aims to facilitate customers with an increased level of convenience.
All a customer needs to do is:

 Visit the nearest BankIslami Branch

 Submit a copy of CNIC/ SNIC
 Fill a One pager Asaan Account form
 Submit a biometric image (thumb impression) for opening this account

BankIslami with its aim of serving you the Right Way provides the facility of opening Asaan
Account in Sahulat Variant. The customers with this variant can enjoy added benefits on the
minimum balance of PKR 25,000/-
The main features of Islami Asaan Account are:

 No minimum balance on operating the account

 Single/ Joint Account
 Halal profit on monthly basis (for remunerative accounts- Saving and Sahulat only)
 Total Debit per Month: Rs. 500,000/-
 Total Credit Balance Limit: Rs. 500,000/-
 Simple one pager account opening form
 Visa Classic Card*
 Cheque Book to be issued on request*
 Free Internet banking facility
 Free E-Statement Facility
 Free SMS Alerts**
 Free Cheque Book**
 Free Pay order**

* Charges as per SOC

**On minimum balance of PKR 25,000/- (Available on Asaan Sahulat Account Only)
How it’s different from conventional account?
BankIslami's Islami Sahulat 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 the 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.

Documents required to open an account

The customers need to just submit his/her CNIC/ SNIC

Islami Dollar Bachat Account
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 Nonresidents 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
 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’s different from conventional account?

BankIslami's Islami Sahulat 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 the 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.
Documents required to open an account
The documents required vary with the customer category as follows:
Salaried Individual /Joint Account Holders
 Filled Account Opening Form
 Computerized National Identity Card (CNIC)
 Passport (for Non-residents only)
 Employment proof (Pay slip, Employment letter etc.)

Sole Proprietors
 Filled Account Opening Form
 Computerized National Identity Card (CNIC)
 Passport (for Non-residents only)
 NTN Certificate

Partnership/Club/Society/Association/NGO/Trust
 Certified Copy of Partnership/ Trust Deed
 Certificate of Registration
 Signatures of all Partners on letter of Partnership
 Certified copy of rules
 Certified copy of resolution
 Copy of by-laws
 Copy of NTN Certificate
 CNICs of all Partners
 Passports (for Non-residents only)

Limited Company
 Certificate of Incorporation
 Certificate for Commencement of Business (PLC only)
 Memorandum of Association
 Articles of Association
 Current list of Directors
 Copy of Board Resolution
 CNICs of all Directors
 Copy of NTN Certificate and Form 29

Consumer Banking
Bank Islami’s Islamic consumer banking has variety of things to offer you. Bank Islami
offering the following products under its consumer banking tag.

 MUSKUN Home Financing

 Islami Auto Finance
 BankIslami Takaful
  Home Remittance

MUSKUN Home Financing

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. Bank offer 4 type
of MUSKUN home financing and they are:
 Purchase
 Construction
 Renovation
 Replacement

How it’s different from conventional banking?

 You will approach BankIslami 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. Your 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 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

Purchase Your Home

Just point your finger at the Bungalow or Apartment of your choice and bank will help you
buy it.

Financing Tenure 2 to 25 years

Financing Range Rs. 200K – 50M

Bank Investment Maximum up to 70% for salaried

Ratio Maximum up to 65% for SEP *
(* Doctors, Engineers, Architectures, Chartered Accountants)

Maximum up to 50% for Business persons/NRPs

Prepayment No extra charges apply on early unit purchase/ early termination after 12 months of
Option available disbursement.
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.

Benefits of Purchasing Using MUSKUM:

 Quick Processing
 Financing up to 50% to 70% of the value of the property
 Financing limit Rs. 50 Million
 Tenor up to 25 years
 No pre-payment additional price charged after one year & completion
 Flexible & Affordable installments
 Clubbing of family income
 No Negative Area
 Construct Your Home
Do you Dream of providing your loved ones a home of their own but don't have the funds?
Don't stop dreaming, let bank make your Dream a Reality with BankIslami MUSKUN Home
financing where you can avail financing for any of the following facilities:

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

Construction Tenure Maximum 2 Years

Financing Tenure Minimum 2 Years (excluding construction period)

Maximum 25 Years (including construction period)

Financing Range Rs. 200K – 50M

Bank Investment Maximum up to 70% for salaried

Ratio Maximum up to 65% for SEP *
(* Doctors, Engineers, Architectures, Chartered Accountants)

Maximum up to 50% for Business persons/NRPs

Prepayment Option No extra charges apply on early unit purchase/ early termination after 12 months of completion.
available In case Customer applies for purchase of early units or pre-payment within 12 months of
completion, additional Musharakah Units will be revalued at 5% higher than face value.

Benefits of constructing Using MUSKUM:

 Quick Processing
 Financing up to 50% to 70% of the value of the property
 Financing limit Rs. 50 Million
 Tenor up to 25 years
 No pre-payment additional price charged after one year & completion
 Flexible & Affordable installments
 Clubbing of family income
 No Negative Area

People Eligible for the Financing

Citizenship Pakistani

Cities All major cities where BIPL Branch exist.

 Age Limit Salaried/Businessmen/Selected Professionals:
Primary Applicant: 25-65 Years
Co- Applicant: 21-70 Years
NRPs:
Primary Applicant: 25-60 Years.
Co- Applicant: 21-70 Years.

Employment Tenure Salaried:

Minimum 6 months at current employment and 2 years continuous employment
experience in the same industry/field.
Businessmen:
3 years of business / practice.

Minimum Income Salaried: Rs. 51,000/-

Business man: Rs. 75,000/-
NRPs: Rs. 150,000/-

Additional Criteria 1. An NRP needs to have a Co-applicant residing in Pakistan as an Authorized

for NRPs Person on behalf of the NRP.
2. Only Salaried NRPs can avail MUSKUN Home Financing.

BIR 50% to 70%

Documents required for financing

General
 Copy of CNIC (Applicant and Co-applicant)
 2 passport size photographs (Applicant and Co-applicant)
 Completely filled Application form with Applicant's Profile Report
 Copies of Last 6 months paid utility bills

Property Documents
 Copy of chain of all title documents
 Approved Building plan
 Public notice

For Salaried Persons

 Employment certificate issued by employer
 Last three Salary Slips
 Bank Statement of last 12 months
 Detail of other financing along with its repayment
 For Businessmen
 Income tax return for last three years , Proprietorship Letter/Partnership ded/
Memorandum and Articles of Association
 Company Bank Statement of last 12 months
 Detail of other financing along with its repayment

For NRPs
We offer NRPs (only salaried segment) purchase/construct/renovate/balance transfer
facility of a House/Property only in Pakistan only

 Last three months’ Salary Slip

 Copy of Passport
 Copy of NICOP
 VISA/residential status proof
 Tax deduction details
 Employment Certificate and Contract Copy
 Bank Letter and Banks Statement of last 12 months
 2 passport-sized colored Photographs of Applicant / Co-Applicant
 All the above mentioned documents relating to NRP should be duly attested by
Pakistani Consulate

Renovate Your Home

Thinking of remodelling your kitchen to fulfil 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, bank will help you renovate it.

Construction Maximum 6 months

Tenure

Financing Tenure 2-7 Years

Financing Range Rs. 150K –5M

Bank Investment Maximum up to 70% for salaried

Ratio Maximum up to 65% for SEP *
(* Doctors, Engineers, Architectures, Chartered Accountants)

Maximum up to 50% for Business persons/NRPs

Prepayment Option No extra charges apply on early unit purchase/ early termination after 12 months of
available completion.
In case Customer applies for purchase of early units or pre-payment within 12
 months of completion, additional Musharakah Units will be revalued at 5% higher
than face value.

Benefits of renovating Using MUSKUM:

 Quick Processing
 Financing up to 50% to 70% of the value of the property
 Financing limit Rs. 50 Million
 Tenor up to 25 years
 No pre-payment additional price charged after one year & completion
 Flexible & Affordable installments
 Clubbing of family income
 No Negative Area

People Eligible for the Financing

Citizenship Pakistani

Cities All major cities where BIPL Branch exist.

Age Limit Salaried/Businessmen/Selected Professionals:

Primary Applicant: 25-65 Years
Co- Applicant: 21-70 Years
NRPs:
Primary Applicant: 25-60 Years.
Co- Applicant: 21-70 Years.

Employment Tenure Salaried:

Minimum 6 months at current employment and 2 years continuous employment
experience in the same industry/field.
Businessmen:
3 years of business / practice.

Minimum Income Salaried: Rs. 51,000/-

Business man: Rs. 75,000/-
NRPs: Rs. 150,000/-
 Additional Criteria 1. An NRP needs to have a Co-applicant residing in Pakistan as an Authorized
for NRPs Person on behalf of the NRP.
2. Only Salaried NRPs can avail MUSKUN Home Financing.

BIR 50% to 70%

Documents required for financing

General
 Copy of CNIC (Applicant and Co-applicant)
 2 passport size photographs (Applicant and Co-applicant)
 Completely filled Application form with Applicant's Profile Report
 Copies of Last 6 months paid utility bills

Property Documents
 Copy of chain of all title documents
 Approved Building plan
 Public notice

For Salaried Persons

 Employment certificate issued by employer
 Last three Salary Slips
 Bank Statement of last 12 months
 Detail of other financing along with its repayment

For Businessmen
 Income tax return for last three years , Proprietorship Letter/Partnership ded/
Memorandum and Articles of Association
 Company Bank Statement of last 12 months
 Detail of other financing along with its repayment

For NRPs
We offer NRPs (only salaried segment) purchase/construct/renovate/balance transfer
facility of a House/Property only in Pakistan only

 Last three months’ Salary Slip

 Copy of Passport
 Copy of NICOP
 VISA/residential status proof
 Tax deduction details
 Employment Certificate and Contract Copy
 Bank Letter and Banks Statement of last 12 months
 2 passport-sized colored Photographs of Applicant / Co-Applicant
  All the above mentioned documents relating to NRP should be duly attested by
Pakistani Consulate

Replace Your Home

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, bank will help
you transfer it.

Financing Tenure 2-25 Years

Financing Range Rs. 200K - 50M

Bank Investment Maximum up to 70% for salaried

Ratio Maximum up to 65% for SEP *
(* Doctors, Engineers, Architectures, Chartered Accountants)

Maximum up to 50% for Business persons/NRPs

Prepayment No extra charges apply on early unit purchase/ early termination after 12 months
Option available of completion.
In case Customer applies for purchase of early units or pre-payment within 12
months of completion, additional Musharakah Units will be revalued at 5% higher
than face value.

Benefits of renovating Using MUSKUM:

 Quick Processing
 Financing up to 50% to 70% of the value of the property
 Financing limit Rs. 50 Million
 Tenor up to 25 years
 No pre-payment additional price charged after one year & completion
 Flexible & Affordable installments
 Clubbing of family income
 No Negative Area

People Eligible for the Financing

Citizenship Pakistani

Cities All major cities where BIPL Branch exist.

 Age Limit Salaried/Businessmen/Selected Professionals:
Primary Applicant: 25-65 Years
Co- Applicant: 21-70 Years
NRPs:
Primary Applicant: 25-60 Years.
Co- Applicant: 21-70 Years.

Employment Tenure Salaried:

Minimum 6 months at current employment and 2 years continuous employment
experience in the same industry/field.
Businessmen:
3 years of business / practice.

Minimum Income Salaried: Rs. 51,000/-

Business man: Rs. 75,000/-
NRPs: Rs. 150,000/-

Additional Criteria 1. An NRP needs to have a Co-applicant residing in Pakistan as an Authorized

for NRPs Person on behalf of the NRP.
2. Only Salaried NRPs can avail MUSKUN Home Financing.

BIR 50% to 70%

Documents required for financing

General
 Copy of CNIC (Applicant and Co-applicant)
 2 passport size photographs (Applicant and Co-applicant)
 Completely filled Application form with Applicant's Profile Report
 Copies of Last 6 months paid utility bills

Property Documents
 Copy of chain of all title documents
 Approved Building plan
 Public notice

For Salaried Persons

 Employment certificate issued by employer
 Last three Salary Slips
 Bank Statement of last 12 months
 Detail of other financing along with its repayment
 For Businessmen
 Income tax return for last three years , Proprietorship Letter/Partnership ded/
Memorandum and Articles of Association
 Company Bank Statement of last 12 months
 Detail of other financing along with its repayment

For NRPs
We offer NRPs (only salaried segment) purchase/construct/renovate/balance transfer
facility of a House/Property only in Pakistan only

 Last three months’ Salary Slip

 Copy of Passport
 Copy of NICOP
 VISA/residential status proof
 Tax deduction details
 Employment Certificate and Contract Copy
 Bank Letter and Banks Statement of last 12 months
 2 passport-sized colored Photographs of Applicant / Co-Applicant

All the above mentioned documents relating to NRP should be duly attested by Pakistani
Consulate

Islami Auto Finance

BankIslami's Islami Auto Finance facility offers you the convenience to get the car of your
choice, the Shariah Compliant way. Bank Islami offer 2 types of auto financing and they are:

 Brand New Car

 Used & Re-Conditioned Car

Auto Financing facility for New

Tenure of Auto Financing 1 to 7 years

Customer Equity 15% to 90%

Processing Charges Rs. 4,700/- (Rs. 1,200 Pre-Processing is part of the Rs. 4,700/-

Amount for the first time)

Tracker Installation Tracker installation is Mandatory for All Vehicles and tracker shall be

Installed by BankIslami Pakistan Limited.

Takaful Takaful 2.9%*

Brand New Car

Concept of DM based Auto Financing:

Diminishing Musharakah (DM) is a partnership transaction in which the partners agree to
terminate Shirkat (partnership) gradually by means of purchase of one partner's share by
other partner.
Under Diminishing Musharakah financing, a bank and its client participate in the ownership
of an asset on the basis of 'Shirkat-ul-Milk' (i.e. Joint ownership)
A DM based auto financing transaction comprises of mainly following three steps:

 Participation in the ownership of an asset by Bank and Client (i.e. creation of

Musharakah) and dividing Islamic Bank's ownership share into a number of
Musharakah units;
 Bank rents out its share of ownership in the asset to the Client (i.e. Ijarah transaction
between Islamic Bank and Client); and
 Gradual sale of Musharakah units by Bank to the client on periodic basis and at the
end of the financing tenure client becomes the sole owner of the asset.

A DM Financing is a combination of Musharakah, Ijarah and Sale transaction. Therefore, all

rules pertaining to Musharakah, Ijarah and Sale transactions are applicable to a DM
transaction.
All the three transactions are independent and are executed through separate contracts.
How it’s different from conventional banking?

 You will approach BIPL and identify the vehicle to be acquired on Diminishing
Musharakah basis under Auto Finance Facility
 You will fill in the Application Form and submit the required documents
 BankIslami will process your application and approve or reject the credit application,
depending on how you fit the bank's risk criteria
 Once the application is approved, you will sign an Undertaking to Musharakah
whereby, you will undertake to formalize Shirkat-ul-Milk Agreement and execute
other transaction documents after arrival of Musharakah Asset (Vehicle).
 After Undertaking to Musharakah, Booking of Vehicle is made by the Bank at the
dealer
  After the vehicle arrives at the dealer and is purchased by the Bank, Part payment/
Full payment to dealer will be made for booking / purchase of Vehicle and you will
sign Shirkat-ul-Milk Agreement and Payment Agreement. You will also sign an
'Undertaking to Purchase Musharakah Units', the Bank will rent out its ownership
share in the vehicle to you against periodic rental payments.
 Being joint owner of the vehicle, principally Bank and Customer are liable to share
the expenses like registration, Takaful cost etc. However as Bank pays the total
expenses, therefore, such expenses are accounted for while determining the rental
amount
 Withholding Tax/ Advance Income Tax (On Cost) will be borne by BIPL, as Title of
the Vehicle is in BIPL's name
 Advance to Financing Tax will be at 3% (or whatever the rate may be changed to by
the Govt of Pakistan) from Non-filers at the time of agreement.
 On periodic basis, you will purchase BIPL share in units, and at the end of the
transaction tenure, you will become the sole owner of the Vehicle
 In case, you wish to terminate the Agreement before the agreed period, you will have
an option to buy the vehicle on the agreed buy-out price given in the Undertaking to
Purchase Musharakah Units.

People Eligible for the Financing

Citizenship Pakistani

Cities Karachi, Lahore and Islamabad/Rawalpindi

Income Minimum Rs. 40,000 to 50,000 (Net Disposable)

Processing Rs. 4,700/- (Rs. 1,200 Pre-Processing is part of the Rs. 4,700/- Amount for the first
Charges time)

Age Limit For Salaried:

Minimum 21 Year (at the time of Maturity)

Maximum 60 Years (at the time of Maturity)

For Self-employed:

Minimum 21 Years (at the time of Maturity)

Maximum 65 Years (at the time of Maturity)

Documents required for financing

Businessmen/Self Employed Professionals (SEPs)

 Application Form properly filled and signed by customer
 SBP undertaking properly filled and signed by customer
 1 Year Bank Statement (Original / stamped & signed by bank)
 Current Salary Slip
 Signature Specimen Form
 1 Year Employment Proof
 Clear and Visible Copy of CNIC
 2 Recent Photograph (passport size)
 Processing Cheque Rs. 1,200/- drawn on the bank of which statement is provided
 NOC from partners or other shareholders, as the case may be
 Copy of NTN and copy of Income Tax Returns or Any Authentic Business proof

Salaried
 Application Form properly filled and signed by customer
 SBP undertaking properly filled and signed by customer
 6 Month's Bank Statement, Where Salary Credits (Original / stamped & signed by
bank)
 Current Salary Slip
 Signature Specimen Form
 Year Employment Proof
 Clear and Visible Copy of CNIC
 Recent Photograph (passport size)
 Processing Cheque Rs. 1,200/- drawn on the bank of which statement is provided

Used & Re-Conditioned Car

Auto Financing Used/ Re-conditioned Vehicles

facility for

Tenure of Auto 1 to 7 years

Financing

Customer Equity 15% to 90%

Processing Charges Rs. 4,700/- (Rs. 1,200 Pre-Processing is part of the Rs. 4,700/- Amount for the
first time)

Tracker Installation Tracker installation is Mandatory for All Vehicles and tracker shall be installed
by BankIslami Pakistan Limited.
 Takaful 2.9%*

People Eligible for the Financing

Citizenship Pakistani

Cities Karachi, Lahore and Islamabad/Rawalpindi

Income Minimum Rs. 40,000 to 50,000 (Net Disposable)

Processing Rs. 4,700/- (Rs. 1,200 Pre-Processing is part of the Rs. 4,700/- Amount for the first
Charges time)

Age Limit For Salaried:

Minimum 21 Year (at the time of Maturity)

Maximum 60 Years (at the time of Maturity)

For Self-employed:

Minimum 21 Years (at the time of Maturity)

Maximum 65 Years (at the time of Maturity)

Documents required for financing

Businessmen/Self Employed Professionals (SEPs)

 Application Form properly filled and signed by customer
 SBP undertaking properly filled and signed by customer
 6 Months Bank Statement (Original / stamped & signed by bank)
 Current Salary Slip
 Signature Specimen Form
 1 Year Employment Proof
 Clear and Visible Copy of CNIC
 2 Recent Photograph (passport size)
  Processing Cheque Rs. 1,200/- drawn on the bank of which statement is provided
 NOC from partners or other shareholders, as the case may be

Salaried
 Application Form properly filled and signed by customer
 SBP undertaking properly filled and signed by customer
 6 Month's Bank Statement, Where Salary Credits (Original / stamped & signed by
bank)
 Current Salary Slip
 Signature Specimen Form
 1 Year Employment Proof
 Clear and Visible Copy of CNIC
 Recent Photograph (passport size)
 NOC from partners or other shareholders, as the case may be

Processing Cheque Rs. 1,200/- drawn on the bank of which statement is provided

BankIslami Takaful

What Is Takaful?
The word Takaful comes from the Arabic root word Kafala, meaning “Guaranteeing each
other”. The Takaful arrangement is based on the concept of Ta’awun (mutual assistance) and
‘Tabarru’, where a group of participants pool resources in order to mutually share the risk of
each other. In case of loss occurring to one or more of the participants, the group collectively
and voluntarily provides financial assistance to compensate the beneficiaries of the
participants.
Our Takaful Partner: Pak-Qatar Family Takaful Limited (PQFTL)
In this Takaful plan, BankIslami is serving as a “Distribution agent” of Pak-Qatar Family
Takaful Limited. PQFTL (as a principal) is responsible for claims settlement as well as
professional management of Participant’s Investment account and the Waqf fund. PQFTL is
Pakistan’s premier Family Takaful provider that is financially backed by some of the most
prominent Qatari Institutions including: Qatar Islamic Insurance Company (QIIC), Qatar
International Islamic Bank (QIIB), Qatar Islamic Bank, Qatar National Bank, Masraf Al
Rayyan, The Anwal Group and Munich based FWU, Group. PQFTL is registered and
supervised by Securities and Exchange Commission of Pakistan.
Types of Takaful
Bank Islami is offering 3 types of Takaful and they are:
 Asaan Saving plan
 Normal Saving plan
 Single Contribution plan
Asaan Saving Plan
Investment in any of the bank Islami’s product can be made through these strategies.
Cash Strategy: A conservative strategy with investment option in following Shariah
compliant avenues:
 Sukuks
 Shariah compliant income funds
 Islamic Deposits etc.
Equity Strategy: An aggressive strategy with investment options in following Shariah
compliant avenues:
 Stock Exchange (Shariah compliant stocks)
 Shariah compliant mutual funds
Plan Description

Contribution Frequency Annual / Half Yearly / Quarterly / Monthly

Minimum Regular Contribution Bands (in 30,000 / 15,000 / 7,500 / 2,500

Rs.)

Flexibility of contribution Increase / Decrease of Regular contributions of PKR

30,000

Tenure The plan is available for a minimum duration of 10 years.

Minimum joining age 18 years

Maximum joining age 60 years

 Maximum age at maturity Not exceeding 70 years

Benefits Saving & security

Real time Takaful Plan issuance

Total process time 30 minutes approx.

Free Look Period 14 days

Sample Illustration

Customer Age 39 years

Policy Term 10 years

Contribution PKR 54,000 annually

Rate of Return

Membership 7% rate of return 9% rate of return 11% rate of return

Year

Main Plan Cash Main Plan Cash Main Plan Cash

Death Benefit Value Death Benefit Value Death Benefit Value
 1 540,000 9,251 540,000 9,342 540,000 9,432

5 540,000 221,843 540,000 231,093 540,000 240,673

10 584,993 584,993 642,510 642,510 705,987 705,987

Normal Saving Plan

Contribution Frequency Annual / Half Yearly / Quarterly / Monthly

Minimum Regular Contribution Bands (in 56,000 / 28,000 / 14,500 / 4,700

Rs.)

Flexibility of contribution Increase / Decrease of Regular contributions of PKR

56,000

Tenure The plan is available for a minimum duration of 7 years.

Minimum joining age 18 years

Maximum joining age 60 years

Maximum age at maturity Not exceeding 70 years

 Benefits Saving & security
Real time Takaful Plan issuance
Total process takes 30 minutes approx.
Complementary Takaful Benefit
Payment Holidays
Partial withdrawal available during the tenure
Appointment of up to four beneficiaries.

Total process time 30 minutes approx.

Free Look Period 14 days

Sample Illustration

Customer Age 39 years

Policy Term 20 years

Contribution PKR 100,000 annually

Saving Plan Rate of Return

Membership 7% rate of return 9% rate of return 11% rate of return

Year

Main Plan Cash Main Plan Cash Main Plan Cash

Death Benefit Value Death Benefit Value Death Benefit Value
 1 2,000,000 8,378 2,000,000 8,581 2,000,000 8,785

5 2,000,000 1,070,385 2,000,000 1,184,319 2,000,000 1,310,843

10 3,088,158 3,088,158 3,858,940 3,858,940 4,843,732 4,843,732

Single Contribution plan

Eligibility Age Participants between the ages of 18-60 years are eligible for this plan.
Once

you become a part of the plan, you can continue with the policy until 70
years of age.

Minimum Single Rs. 150,000

Contribution

Flexibility of contribution Additional Lump Sum contribution (min. of PKR 56,000)

Tenure Minimum 3 years

Contribution Frequency Single Contribution

 Facilities* No medical check required*
Appointment of up to four beneficiaries.
Partial withdrawal available during the tenure
Takaful Death Benefit: Sum Covered or Cash Value, whichever is higher
Switch between the Investment Strategies anytime you want

Sample Illustration

Customer Age 39 years

Policy Term 10 years

Contribution PKR 100,000 annually

Single Contribution Plan Rate of Return

Membership Cash Takaful Main Cash Takaful Main Cash Takaful Main
Year Value Cover Plan Value Cover Plan Value Cover Plan
Death Death Death
Benefit Benefit Benefit

1 994,722 1,000,000 1,994,722 1,013,618 986,182 2,000,000 1,032,521 967,479 2,000,000

5 1,210,255 789,745 2,000,000 1,331,564 668,436 2,000,000 1,462,321 537,679 2,000,000

10 1,546,036 453,964 2,000,000 1,879,677 120,323 2,000,000 2,274,008 0 2,274,008

Home Remittance

One of the important functions of bank Islami is to transfer funds for customers from one
location to another. Remittances department deals with the transfer of money for customer
from one bank to another or from one branch to another. Bank Islami offering their
remittance services with the cooperation of the following agencies. Bank Islami offers 3 ways
to transfer funds and they are:

 MoneyGram
 Ria
 Grievance Cell

MoneyGram
BankIslami introduces MoneyGram money transfer services. Now you can receive your
money from your loved ones abroad at any BankIslami branch nationwide.
BankIslami MoneyGram money transfer service comes with the following features:

 Service available at all 317 BankIslami branches in 93 cities.

 Fast, Reliable and Hassle Free money transfer.
 Money transfer from MoneyGram outlets in 192 countries worldwide - BankIslami
24/7 phone banking.

RIA
BankIslami introduces RIA money transfer services. Now you can receive your money from
your loved ones abroad at any BankIslami branch nationwide.
BankIslami MoneyGram money transfer service comes with the following features:

 Service available at all 317 BankIslami branches in 93 cities.

 Fast, Reliable and Hassle Free money transfer.
 Money transfer from MoneyGram outlets in 192 countries worldwide - BankIslami
24/7 phone banking.

Grievance Cell
The Honorable Federal Ombudsman of Pakistan, Mr. M. Salman Faruqui NI, has established
the 'Grievance Commissioner Cell' for Overseas Pakistanis in Federal Ombudsman
Secretariat by appointing Mr. Hafiz Ahsaan Ahmad Khokhar as Grievance Commissioner
(GCOP) for Overseas Pakistanis under Section (7) of the Federal Ombudsmen Institutional
Reforms Act, 2013. GCOP has to address the individual and systematic issues of the
Overseas Pakistanis related to the Federal Government Ministries, Departments,
Organizations and Agencies.
In order to facilitate and redress Home Remittance related complaints of outbound workers
and overseas Pakistanis, Grievance Commissioner Cell is been started. The complains can be
launched through the below mentioned forums:
Hafiz Ahsaan Ahmad Khokhar Senior Advisor Law/Registrar Grievance Commissioner for
Overseas Pakistanis, Office of the Federal Ombudsman.

Alternate Distribution Channels

Same as others BankIslami offers same services as online banking, Transfer funds, Lockers
facilities, ATM card facilities and others.
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

Inter Bank Transfer Fund

Do you want to provide ease and convenience to your friends, family, colleagues and
business associates? With BankIslami’s Interbank funds transfer (IBFT) facility you can
easily transfer funds in their accounts via your ATM. Now, when dealing with you they can
ensure hassle free 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

Card less Biometric ATM

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.

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.

Phone Banking
BankIslami offers Banking at your fingertips. Forget about rushing off to the Bank during
office hours or waiting in queues - switch to Banking that's quick, secure and so very
convenient. BankIslami Self Service facility provides you the convenience and ease of
making transactions or getting your account details by just making a call to 111-Islami (475-
264).

You can avail the following Phone Banking self service facilities by following a series of
simple menu choices.

 Balance Inquiry
 Transaction details
 Pak Rupee Fund transfer

Visa/Debit Card
 Your BankIslami Visa Debit Card gives you the freedom to access to your money
anytime, anywhere! BankIslami Debit card allows you to use your Debit card safely at
millions of Retail outlets and ATMs Worldwide.
 Use your BankIslami Debit card whether you want to pay for shopping, dining, fuel or
travel. Your BankIslami Visa Debit card allows you to do the followings:
 Purchase at 27 Million Locations Worldwide
 Withdraw Cash at 1.4 Million ATM Globally
  Online Shopping
 Set your Card for App Store or Google play Accounts
 Transfer Funds to any Bank Account in Pakistan
 Pay Utility Bills & Purchase Mobile Talk-Time and much more

MBankIslami
BankIslami brings an array of convenient, secure and personalized services at your fingertips.
With mBankIslami Mobile App, now you can easily perform any of the following:

 Check Account Balance

 Pay Bills
 Transfer Funds
 Locate ATMs & Branches
 View Statement
 Buy Mobile Talk-Time
 Set Payment Reminders
 Manage Beneficiaries & Register Bills

Business Banking
Corporate banking, also known as business banking, refers to the aspect of banking that deals
with corporate customers. The corporate banking segment of banks typically serves a diverse
range of clients, ranging from small to mid-sized local businesses with a few millions in
revenues to large conglomerates with billions in sales and offices across the country.
Bank Islami provide a comprehensive range of financial services to large number of
corporate clients including multinationals and public sector entities, by partnering with them
to build long-term relationships. By drawing on the expertise of in-house product specialists
and Shariah scholars working under the guidance of our Shariah Supervisory Board, we, at
Bank Islamic are capable of providing Shariah-compliant financing solutions to meet the
working capital finance, import finance, export re-finance, long-term finance, documentary
credit requirements and project financing needs of our customers.
Bank Islamic offer 4 different types of product to its business clients and the products are:
 Corporate Banking
 Investment Banking
 SME financing
 Agri financing

Corporate Banking
Corporate banking, also known as business banking, refers to the aspect of banking that deals
with corporate customers. Corporate banking is defined as custom-tailored financing and
banking services for corporations. Corporate banking is typically offered by commercial
banks, and entails all the services that can be extended on a financial level to corporate
entities to ease day-to-day operations. Corporate banking is a key profit center for most
banks; however, as the biggest originator of customer loans, it is also the source of regular
write-downs for loans that have soured.
BankIslami business banking group is a leading provider of financial services to top tier
multinational and local clients across the country, serving the financial needs of the nation’s
pre-eminent corporations and financial institutions. Our well diversified portfolio comprises
of Power, Textile, Telecom, Fertilizer, Consumer Goods, Cement and many other important
segments of our national economy.
BankIslami Corporate Banking staff also partner with product specialists to provide a
complete array of corporate banking solutions ranging from cash management, foreign
exchange, trade finance, custody, clearing and loans, to capital markets, derivatives and
structures products. They also partner with our investment banking arm to deliver investment
banking capabilities to our relationship clients.
BankIslami offer the following products and services to help you achieve your business
objectives:
 Account Services
 Trade Services
 Financing
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
 BankIslami serves its customers with nationwide branches in all major cities and
towns
 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
Financing is the act of providing funds for business activities, making purchases or investing.
Financial institutions and banks are in the business of financing as they provide capital to
businesses, consumers and investors to help them achieve their goals. The use of financing is
vital in any economic system, as it allows companies to purchase products out of their
immediate reach.
BankIslami is offering 4 types of financing to its business clients and they are:
 Working Capital Finance
 Project Finance
 Musharakah Finance
 Mudarabah Finance
Working Capital Finance
Working Capital Finance for your short term financing needs. At BankIslami, 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 offer 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. Karobar Financing: Karobar
Financing product aims at fulfilling working capital requirements of the Clients. In this
transaction, BankIslami Pakistan Limited ('BankIslami') purchases assets/goods that are
available for sale from the Client against an agreed purchase price on spot basis. BankIslami
then under separate arrangement appoints the Client its Agent to sell the goods in the market
at a higher price to earn its desired profit. 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
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. Ijarah: Ijarah is a contract, whereby, BankIslami will lease
out an asset to the Corporate Client and receive periodical rentals from the Client for the use
of that asset. The asset will remain in the ownership of the Bank throughout the term of
Ijarah. At the end of the Ijarah term, the asset can be purchased by the Client at an agreed
price. Ijarah is mainly used for long and medium term fixed asset financing for infrastructure,
BMR and industrial projects. Diminishing Musharakah: The product of Diminishing
Musharakah is offered on the basis of 'Shirkat-ul-Milk'. Shirkat-ul-Milk means partnership of
persons in an undivided property. Process of Diminishing Musharakah financing involves
BankIslami taking share in the ownership of a specific asset along with the Corporate Client
and then gradual purchase of the Client of BankIslami's ownership share in the asset
throughout the term of Diminishing Musharakah. At the end of the Diminishing Musharakah
term, Client becomes the sole owner of the asset. Diminishing Musharakah is mainly used for
long and medium term fixed asset financing for infrastructure, BMR and industrial projects.
Diminishing Musharakah is also an ideal mode for Real Estate Financing.
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. Running Musharakah:
Running Musharakah, being a Shariah compliant alternative to the conventional Running
Finance facility, is based on ‘Shirkat-ul-Aqd’ rules (i.e. profit and loss sharing arrangement).
The Bank participates in the operating activities of the Client and shares profit and loss as per
the actual performance of the business.
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
Investment banking is a specific division of banking related to the creation of capital for other
companies, governments and other entities. Investment banks underwrite new debt and equity
securities for all types of corporations, aid in the sale of securities, and help to facilitate
mergers and acquisitions, reorganizations and broker trades for both institutions and private
investors. Investment banks also provide guidance to issuers regarding the issue and
placement of stock.
Broadly speaking, investment banks assist in large, complicated financial transactions. This
may include advice as to how much a company is worth and how best to structure a deal if
the investment banker’s client is considering an acquisition, merger or sale. It may also
include the issuing of securities as a means of raising money for the client groups, and
creating the documentation for the Securities and Exchange Commission necessary for a
company to go public.
Investment banks employ investment bankers who help corporations, governments and other
groups plan and manage large projects, saving their client time and money by identifying
risks associated with the project before the client moves forward. In theory, investment
bankers are experts in their field who have their finger on the pulse of the current investing
climate, so businesses and institutions turn to investment banks for advice on how best to
plan their development, as investment bankers can tailor their recommendations to the
present state of economic affairs.
Bankislami Shariah Compliant Investment Solutions takes deep pride in providing
Investment Banking to its valued customers, as its core business, revolving around the
concept of Wealth Management.
The external and internal market conditions have had a major impact in certain sections 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 of Investment Banking
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:

Auditors

 Fund Raising
 Corporate Restructuring
 Mergers & Acquisitions
 Infrastructure Development
 Project Financing

Trusteeship

 Trusteeship for SUKUKs etc.

 Fiduciary Roles in Mutual Funds

Structuring

 Securitizations
 Distressed Assets Sales
 Structured Finance
 Initial Public Offerings

Specialized Roles

 Private Equity
 Special Projects
 Ijarah and Musharkah Syndications

Underwriting

 SUKUKs'
 Equity
 Musharakah Certificates

SME financing
SME finance is the funding of small and medium-sized enterprises, and represents a major
function of the general business finance market – in which capital for different types of firms
are supplied, acquired, and costed or priced. Capital is supplied through the business finance
market in the form of bank loans and overdrafts; leasing and hire-purchase arrangements;
 equity/corporate bond issues; venture capital or private equity; and asset-based finance such
as factoring and invoice discounting.
SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs) drive economic growth by
stimulating innovation, acting as a competitive spur to existing businesses to increase their
productivity and making a disproportionately large contribution to job creation. BankIslami
Pakistan Ltd (BIPL) is dedicated in supporting SME business with all the products and
services available through its branch banking network. The products and services are offered
to SME clients strictly under Shariah modes.
Eligibility for SME Financing
For small enterprises

Number of Employees Annual Sales Turnover Financing Allowed

Upto 50 * Upto Rs.150 Mn Upto Rs. 25 Mn

* including contractual employees

However, in cases where an entity fulfills one parameter of SE and its second parameter falls
within the range prescribed for medium enterprise (ME) or above the upper limit prescribed
for ME, then the subject entity shall be classified as ME or commercial/corporate entity as the
case may be.
* Age of the individuals/sole proprietors should be up to 60 years, deviation in the same up to
65 years can be allowed by approving authority of BankIslami.
For Medium Enterprises
Medium Enterprise (ME) is a business entity, ideally not a public limited company which
meets the following parameters:

Number of Employees Annual Sales Turnover Financing Allowed (Maximum per

party)

51-250 for Manufacturing Above Rs.150M and up to Rs.200M (including leased assets)
and Service ME Rs.800M for all types of ME exposure from single or all banks.
51-100 for Trading ME

*In cases where an entity fulfills one parameter of ME and its second parameter falls above
the upper limit prescribed for ME, the subject entity shall be classified as
commercial/corporate entity as the case may be.

Agri financing
Agricultural finance is the provision of multiple types of services dedicated to supporting
both on- and off-farm agricultural activities and businesses including input provision,
production, and distribution, wholesale, processing and marketing.
Agriculture is a major source of livelihood throughout the world, especially for the majority
of poor people living in rural areas in developing countries. A key challenge for the majority
of these farmers is - access to finance. Lack of access to finance is a key impediment to
farmers in improving the efficiency of their productions and adopting better technologies.
With the agricultural sector playing such a major role in the regions in which we operate, it
was inevitable that agricultural finance would play an integral part of banks strategy.
Islami Tractor & Equipment
Based on Diminishing Musharakah under Shirkat-ul-Milk arrangement, farmers can purchase
tractors & equipment’s for their farm.

 Purchase of local and imported Tractors and Farm Equipments

 Up to 70% of the Asset price
 Tenor from 1 to 5 Years
 Registration of the Tractor will be responsibility of the bank
 Takaful / Insurance cover of the Asset will be done by the bank

Requirements for Financing

 Pakistani resident with valid CNIC

 Aged between 18 to 65
 Involved in any type of farming
 Permanent resident of the area
 Should not be defaulter of any Financial Institution
 Able to produce Guarantee / Security