Declaration of Profit on various Deposits for the Quarter ended March 31, 2012
Bank AL Habib Limited – Islamic Banking has declared the following Profit Rates:
Products |
Profit
Rates |
| Saving Deposit (1 – 999,999) |
5.08% |
| Saving Deposit (1,000,000 – 9,999,999) |
5.23% |
| Saving Deposit (10,000,000 – 49,999,999) |
5.45% |
| Saving Deposit (50,000,000 & above) |
5.81% |
| Term Deposit - 7 Days |
6.03% |
| Term Deposit - 1 month |
7.80% |
| Term Deposit - 3 months |
8.75% |
| Term Deposit - 6 months |
9.85% |
| Term Deposit - 1 year (profit to be paid on monthly) |
10.15% |
| Term Deposit - 1 year (profit to be paid on maturity) |
10.60% |
| Term Deposit - 3 years (profit to be paid monthly) |
10.75% |
| Term Deposit - 3 years (profit to be paid on maturity) |
10.85% |
| Term Deposit - 5 years / Equity |
10.90% |
The above profit rates have been approved by our Shariah Advisor.
Profit Sharing Mechanism for Distribution of Profit for next three months i.e. from April 1, 2012 – June 30, 2012.
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 60% of the Gross Income and Depositors’ profit sharing ratio will be 40% of the 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.
Moreover, Bank will create a Profit Equalization Reserve (PER) equivalent to 1% of its Gross Income, i.e. before the distribution of profit between Mudarib and Rab-ul-Maal. The main purpose to create PER is to maintained profit rates smooth and compatible to the market. These reserves will be created at each quarter end, and same will be included in the Gross Income in the subsequent quarter.
Weightages declared for the 2nd quarter i.e. (1st April, 2012 – 30 th June, 2012) are:
| S/n |
Products |
Weightages
assigned |
| 1 |
Saving Deposit (1 – 999,999) |
0.70 |
| 2 |
Saving Deposit (1,000,000 – 9,999,999) |
0.72 |
| 3 |
Saving Deposit (10,000,000 – 49,999,999) |
0.75 |
| 4 |
Saving Deposit (50,000,000 & above) |
0.80 |
| 5 |
Mahana Savings Account |
0.85 |
| 6 |
Term Deposit - 7 Days |
0.87 |
| 7 |
Term Deposit - 1 month |
0.90 |
| 8 |
Term Deposit - 3 months |
1.00 |
| 9 |
Term Deposit - 6 months |
1.05 |
| 10 |
Term Deposit - 1 year (profit to be paid monthly) |
1.10 |
| 11 |
Term Deposit - 1 year (profit to be paid on maturity) |
1.15 |
| 12 |
Term Deposit - 3 years (profit to be paid monthly) |
1.30 |
| 13 |
Term Deposit - 3 years (profit to be paid on maturity) |
1.35 |
| 14 |
Term Deposit - 5 years / Equity |
1.50 |
The above mechanism has been approved by our Shariah Advisor.
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