Profit Sharing Mechanism

Profit Sharing Mechanism for Distribution of Profit for the month of November 2018

The Bank is currently offering Term Deposits, Saving Deposits, AL Habib Tijarat Account (Current Remunerative), AL Habib Apna Individual Account (Current Remunerative) under the principle of Mudarabah.

The Bank will calculate the profit of the deposit pool after every month end. Profit will be distributed at the Net Income level i.e. Gross Income less direct expenses, write-offs/charge-offs and loss on sale of investments. In case of comingling of Bank’s equity with depositors’ fund in pool, the Net Income/Loss of Pool shall be allocated between the Bank’s equity and the depositors’ fund in proportion to their respective share in the pool.

Net 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 50% of Net Income and Depositor(s) profit sharing ratio will be 50% of Net Income after the allocation of profit to Bank’s equity in proportion to the respective share in the pool.

The profit is distributed among the account holders on the bank’s predetermined weightages, announced at the beginning of the month based on their respective category/tiers.

At the end of the month, the Bank may unilaterally reduce its profit sharing ratio for the benefit of all the deposit categories in a pool.

In case of loss, as per the rules of Mudarabah, the deposit pool will share the loss in the ratios of investment of depositor(s).

Weightages declared for the month of November 2018 are:


S. # Products Weightages Assigned
1 Savings Deposit 0.67
2 AL Habib Islamic Young Saver Account 0.96
3 AL Habib Islamic Asaan Savings Account (monthly profit) 0.77
4 AL Habib Islamic Asaan Savings Remittance Account (monthly profit) 0.77
5 Mahana Amdani Savings Account (1 - 49,999) 0.67
6 Mahana Amdani Savings Account (50,000 - 9,999,999) 0.70
7 Mahana Amdani Savings Account (10,000,000 - 24,999,999) 0.72
8 Mahana Amdani Savings Account (25,000,000 – 49,999,999)) 0.74
9 Mahana Amdani Savings Account (50,000,000 - 199,999,999) 0.76
10 Mahana Amdani Savings Account (200,000,000 & above) 0.85
11 AL Habib Tijarat Account (Current Remunerative)) 0.002
12 AL Habib Apna Individual Account (Current Remunerative) 0.002
13 AL Habib Senior Citizen Account 1.03
14 Term Deposit - One Year Senior Citizen Account 1.16
15 Term Deposit - 7 Days 0.80
16 Term Deposit - 1 month (1 - 9,999,999) 0.85
17 Term Deposit - 1 month (10,000,000 - 24,999,999) 0.88
18 Term Deposit - 1 month (25,000,000 - 49,999,999) 0.90
19 Term Deposit - 1 month (50,000,000 - 99,999,999) 0.92
20 Term Deposit - 1 month(100,000,000 & above) 0.94
21 Term Deposit - 3 months (1 - 9,999,999) 0.92
22 Term Deposit - 3 months (10,000,000 - 24,999,999) 0.93
23 Term Deposit - 3 months (25,000,000 - 49,999,999) 0.94
24 Term Deposit - 3 months (50,000,000 - 99,999,999) 0.95
25 Term Deposit - 3 months(100,000,000 & above) 0.97
26 Term Deposit - 6 months (1 - 9,999,999) 0.95
27 Term Deposit - 6 months (10,000,000 - 24,999,999) 0.96
28 Term Deposit - 6 months (25,000,000 - 99,999,999) 0.97
29 Term Deposit - 6 months(100,000,000 & above) 0.98
30 Term Deposit - 1 year - (1 - 9,999,999) (profit paid monthly) 1.125
31 Term Deposit - 1 year - (10,000,000 - 24,999,999) (profit paid monthly) 1.125
32 Term Deposit - 1 year - (25,000,000 - 49,999,999) (profit paid monthly) 1.125
33 Term Deposit - 1 year - (50,000,000-99,999,999)(profit paid monthly) 1.125
34 33. Term Deposit - 1 year -(100,000,000 & above) (profit paid monthly) 1.125
35 Term Deposit - 1 year - (1 - 9,999,999) (profit paid at maturity) 1.01
36 Term Deposit - 1 year - (10,000,000 - 24,999,999) (profit paid at maturity) 1.03
37 Term Deposit - 1 year - (25,000,000 - 49,999,999) (profit paid at maturity) 1.04
38 Term Deposit - 1 year - (50,000,000 - 99,999,999)(profit paid at maturity) 1.05
39 Term Deposit - 1 year -(100,000,000 & above) (profit paid at maturity) 1.06
40 Term Deposit - 3 years -(1 - 99,999,999) (profit paid monthly) 1.05
41 Term Deposit - 3 years - (100,000,000& above) (profit paid monthly) 1.06
42 Term Deposit - 3 years - (profit paid at maturity) 1.07
43 Term Deposit - 5 years - (profit paid at maturity) 1.08

For Foreign Currency Deposit Pool

The Bank’s profit sharing ratio will be 95% of the Net Income and Depositor(s) profit sharing ratio will be 5% of the Net Income.

 

S. # Products Weightages Assigned
1 Savings Deposit (USD) 1.00

The above mechanism has been approved by our Resident Shariah Board Member (RSBM).