Declaration of Profit on various Deposits for the Quarter ended June 30, 2008
Bank AL Habib Limited – Islamic Banking has declared the following Profit Rates:
Products |
Profit
Rates |
| Saving Deposit (1 – 999,999) |
5.20 % |
| Saving Deposit (1,000,000 – 9,999,999) |
5.50
% |
| Saving Deposit (10,000,000 – 49,999,999) |
5.75 % |
| Saving Deposit (50,000,000 & above) |
5.90 % |
| Term Deposit - 1 month |
6.00 % |
| Term Deposit - 3 months |
7.50 % |
| Term Deposit - 6 months |
8.50 % |
| Term Deposit - 1 year |
10.20 % |
| Term Deposit - 3 years (profit to be paid monthly) |
9.50 % |
The above profit rates have been approved by our Shariah Advisor.
Policy for Distribution of Profit for next three months i.e. from July 1, 2008 – September 30, 2008
The Bank is currently offering Term Deposits of various maturities in addition to the Saving Deposits. The term deposits and saving account, will work under the principle of Mudarabah.
The Bank will calculate the profit of the deposit pool after every quarter. Profit will be distributed at the Gross Income level. The Gross Income will be calculated after deducting costs and expenses directly incurred in deriving that Income.
Gross Income of the deposit pool will be shared between the Bank (Mudarib) and depositors (Rab ul Maal) on the basis of a pre-determined profit sharing ratio.
The Bank’s profit sharing ratio will be 70% of Gross Income and Depositors’ profit sharing ratio will be 30% of Gross Income.
The profit is distributed among the account holders on the bank’s predetermined weightages, announced at the beginning of the quarter based on their respective category/tiers.
At the end of the period, the Bank may unilaterally reduce its profit sharing ratio for the benefit of depositor(s).
In case of a loss, as per the rules of Mudarabah, the deposit pool will share the loss in the ratios of investment of depositors.
Weightages declared for the 3rd quarter i.e. (1st July, 2008 – 30th September, 2008) are:
| S/n |
Products |
Weightages
assigned |
| 1 |
Saving Deposit
(1 – 999,999) |
0.65 |
| 2 |
Saving Deposit (1,000,000 – 9,999,999) |
0.67 |
| 3 |
Saving Deposit (10,000,000 – 49,999,999) |
0.70 |
| 4 |
Saving Deposit (50,000,000 & above) |
0.72 |
| 5 |
Term Deposit - 7 Days |
0.72 |
| 6 |
Term Deposit - 1 month |
0.75 |
| 7 |
Term Deposit - 3 months |
0.80 |
| 8 |
Term Deposit - 6 months |
0.90 |
| 9 |
Term Deposit - 1 year |
1.10 |
| 10 |
Term Deposit - 3 years (profit to be paid monthly)* |
1.25 |
| 11 |
Term Deposit - 3 years (profit to be paid on maturity) |
1.30 |
| 12 |
Term Deposit - 5 years |
1.50 |
| 13 |
Bank’s Equity / Funds |
1.50 |
* Minimum size of the deposit will be Rs. 100,000/
The above mechanism has been approved by our Shariah Advisor. |
