| Bank
AL Habib Limited is a well established commercial bank in
Pakistan, which has also been licensed by the State Bank of
Pakistan to undertake Islamic Banking.
Bank AL Habib’s Islamic Banking branch offers Deposit Schemes
and Islamic Financing for Individuals / Traders / Industries
which are completely based on Islamic Shariah principles.
All arrangements / documents relating to above are Shariah
compliant and have been approved by our Shariah Advisor. He
will regularly monitor all Deposits and Financing to ensure
that these are Shariah compatible.
Declaration of Profit on Various Deposits
for the Quarter ended September 30, 2006
Bank AL Habib Limited – Islamic Banking has declared the
following Profit Rates:
| S/n |
Products |
Profit
Rates |
| 1 |
Saving Deposit |
4.23% |
| 2 |
Term Deposit - 3 months |
4.84% |
| 3 |
Term Deposit - 6 months |
5.44% |
| 4 |
Term Deposit - 1 year |
6.65% |
| 5 |
Term Deposit - 5 years |
9.07% |
| 6 |
Term Deposit - 100 million & above |
10.88% p.a. |
The above profit rates have been approved by our Shariah
Advisor.
Policy for Distribution of Profit for next
three months i.e. from October 01 – December 31, 2006
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 Mudarbah.
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 75% of Gross Income
and Depositors’ profit sharing ratio will be 25% 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 depositors.
In case of a loss, as per the rules of Mudarbah, the deposit
pool will share the loss in the ratios of investment of depositors.
Weightages declared for the 4th quarter i.e. (1st October,
2006 – 31st December, 2006) are:
| S/n |
Products |
Weightages
Assigned |
| 1 |
Saving Deposit |
0.70 |
| 2 |
7 days |
0.72 |
| 3 |
1 month |
0.75 |
| 4 |
3 months |
0.80 |
| 5 |
6 months |
0.90 |
| 6 |
1 year |
1.10 |
| 7 |
3 years |
1.30 |
| 8 |
5 years |
1.50 |
| 9 |
Bank’s Equity / Funds |
1.50 |
The above mechanism has been approved by our Shariah Advisor.
|
