SMBL Liabilities

1. 1
Committed to you
Bundles of Product & Services

2. 2
Committed to you
Deposit Accounts in Islamic Banking
• All Deposit Accounts in Islamic Banking may be categorized in two types as per type of
contracts:
– Current Account based on Qarz
– Saving Accounts based on Mudaraba plus Musharkah

3. 3
Committed to you
Current Account in Islamic Banking
• Islamic Banking should follow all Shariah Guidelines regarding Qarz (Loan) at the time
of managing Current Accounts.
• Islamic Bank can not pass on any benefit to current account holder due to the nature of
account.
• However, any benefit which are available to other account holders can be made
available to Current Account holders also.

4. 4
Committed to you
Bundles of Product & Services (Do’s & Don’ts)
Introduction
Liabilities Side
Current Accounts
Business Accounts
Savings Account
Islamic Savings Certificates
Young Bee Savings Account
Hamara Family Savings A/c
Senior Citizens Savings A/c
Daily Stock Account *
*Products are still in process and will be available soon

5. 5
Committed to you
Bundles of Product & Services
Liability Products

6. 6
Committed to you
Bundles of Product & Services (Do’s & Don’ts)
Liabilities Products – Current Account
• Summit Bank’s current account is based on the principal of Qard.
• Aims to provide necessary tools to individuals and corporate customers
to transact their entire bank related business and personal activities.
• Current Account is available for LCY and FCY (USD, GBP, Euro and
Yen) Deposits
• Operation of these current account is similar to conventional current
account.
• Conventional branches network of SMBL can be use for counter services
• Face value is guaranteed by the bank.

7. 7
Committed to you
Bundles of Product & Services (Do’s & Don’ts)
Liabilities Products – Current Account
• However, extra benefits linked to the balance cannot be offered to customers
only maintaining current account with SMBL i.e. free value added services
other than free services offered to savings account.
• Bank may use the funds at its own discretion.
• For the purpose of profit and loss computation and distribution, such current
accounts are treated as Bank's equity.

8. 8
Committed to you
Bundles of Product & Services (Do’s & Don’ts)
Liabilities Products – Business Account
• Conventional banks generally provide extra free services and value-
added features e.g. free pay orders, free cheque books etc. to exclusively
to their business current accounts or high net worth customers.
• Since the current account deposit product of SMBL is based on the
principle of 'Qardh', therefore, impermissible from Shariah perspective
to provide free services related to a specific balance since linking the
benefit of free services to the amount of 'Qardh‘ as Riba.

9. 9
Committed to you
Bundles of Product & Services (Do’s & Don’ts)
Liabilities Products – Business Account
• In order to meet the requirement of customers who want value added services, a
Mudarabah-based Business Account, can be offered as an alternative to the
conventional banking current account.
• Low weightage can be set in such an account leading to a smaller profit rate (e.g.
0.03%).
• In case of loss, same to bear by depositor as per ratio of investment in the pool.
• Different free services can be offered in this deposit product such as:
 Free pay-order
 Free cheque book
 Free online transactions
 Waiver on locker etc

10. 10
Committed to you
Bundles of Product & Services (Do’s & Don’ts)
Liabilities Products – Savings Account
• SMBL-IBD is offering two types of savings account
– Bachat Savings Account (in LCY and FCY)
– Daily Savings Account (only in LCY)
Bachat Savings Account (BSA)
• BSA can be opened in LCY and FCY (USD, GBP, EURO and YEN)
• Underline contract of BSA is Mudaraba, Depositor is Rab-ul-Mall and
SMBL is Mudarib.
• Profit will be calculated on a monthly average balances as per prior declared
Profit Sharing Ratios and Weightages.
• Profit payment will be bi annually.
• Different tiers has been introduced based on the volume of deposit
• Individuals, corporates, NGOs, Government institutions etc can open BSA.

11. 11
Committed to you
Bundles of Product & Services (Do’s & Don’ts)
Liabilities Products – Savings Account
Daily Savings Account (DSA)
• DSA can only be opened in LCY
• Underline contract of DSA is Mudaraba, Depositor is Rab-ul-Mall and SMBL
is Mudarib.
• Profit will be calculated on day end balances as per prior declared Profit
Sharing Ratios and Weightages.
• Profit payment will be monthly.
• Different tier has been introduced based on the volume of deposits.
• Individuals, corporates, NGOs, Government institutions etc can open DSA.

12. 12
Committed to you
Bundles of Product & Services (Do’s & Don’ts)
Liabilities Products – Islamic Savings Certificates
Islamic Savings Certificates (ISCs)
• ISC can be opened in LCY and FCY (USD, GBP, EURO and YEN)
• Investment can be made with a wide range of options from 1 month of 5
years.
• Underline contract of ISC in Mudaraba, ISC Holder is Rab-ul-Mall and
SMBL is Mudarib.
• Profit will be calculated as per prior declared Profit Sharing Ratios and
Weightages.
• Profit payment will be as per opted profit payment option.
• Individuals, corporates, NGOs, Government institutions etc can obtain
ISC.

13. 13
Committed to you
Bundles of Product & Services (Do’s & Don’ts)
Liabilities Products – Young Bee Savings Account
Young Bee Savings Account
• Young Bee is a Minor Savings Account
• The Underline contract of Young Bee Savings Account is Mudaraba.
• It has been designed keeping children’s future needs in mind and will give twin
benefits of savings and investment from day one.
• Young Bee offers a fascinating profit to the youngsters upon average monthly
balance and pays the same on six monthly basis.
• To open and maintain the account following condition should be matched:
• Kids having age of below 18 years.
• Consent of natural guardian i.e. Father & Mother (Subject to fulfill the
KYC/CDD requirement) “or” consent of honorable court’s appointed
guardian in case of absence of natural guardian

14. 14
Committed to you
Bundles of Product & Services (Do’s & Don’ts)
Liabilities Products – Hamra Family Savings A/c
Hamara Family Savings Account
• Hamara Family Saving is basically a Shariah Compliant savings account
providing the group facility offering enhanced returns and other value added
benefits.
Features
• Initial Investment Requirement-Rs.5,000/-
• Minimum Balance Requirement-Rs.5,000/-
• Monthly Attractive returns
• Semi Annually Additional 1% as bonus feature on maintenance of Rs 100,000/- 6
monthly average basis.
• Up to Five free Visa debit cards
• Minors can make purchases and withdraw cash at ATMs via the Visa Debit Card

15. 15
Committed to you
Bundles of Product & Services Do’s & Don’ts
Liabilities Products - Do’s & Don’ts
DOs DON’T’s
Salient feature of all deposit products to
be clearly communicated to customer
No mis-commitment regarding
guaranteed profit rate with customer.
Signed copy of, weightages, Profit
Distribution ratio between Rabb- ul-
Maal (Depositors) and Mudarib (SMBL)
& past profit rates must be disclosed on
the Notice board
No value added services to be offered
exclusively to Current Account Holder
The Fatwa issued by SMBL’s Shari’ah
Advisor must be disclosed on the Notice
board
No service charges to be waived
exclusively to Current Account Holders
It must be clearly communicated to
customers maintaining Mudaraba based
accounts that in case of loss, same to be
borne by them

16. 16
Committed to you
JazakAllah o Khair
‫خیرا‬ ‫ہللا‬ ‫جزاک‬