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Al baraka bank pakistan
- 2. Islamic Finance Group Members Roll No Naqi Raza 834 Ahmad M. Ali 820 Mustafa Shafee 808 Shahman Rasheed 833 2 Topic: Al-Baraka Islamic Bank (AIB)
- 4. What is Al–Baraka Islamic Bank (AIB)? AlBaraka Islamic Bank (AIB) is a member of Albaraka Banking Group (ABG) which is a Bahraini Joint Stock Company listed on Bahrain and Dubai stock exchanges and one of the well-known leading international Islamic banks. Albaraka Banking Group is the biggest Islamic banking group listed on the Bahrain Stock Exchange in terms of capitalization. It has been rated by Standard & Poor's as BBB- with a short-term rating of A-3. The authorized capital of ABG is US$1.5 billion, while the total equity amounts to about US$ 1.59 billion. With assets of US$11.2 billion, the Group has a wide geographical presence in the form of subsidiary banking Units in 15 countries, which in turn provide their services through more than 700+ branches. Al Baraka currently has a strong presence in Algeria, Bahrain, Egypt, Jordan, Lebanon, Pakistan, South Africa, Sudan, Syria, Tunis, Turkey, Indonesia, Libya, Iraq and Saudi Arabia. 4
- 5. History Al-Baraka Islamic Bank (AIB) has the honor of being the pioneer of Islamic banking in Pakistan and has been operating in the country as branches of Al- Baraka Islamic Bank Bahrain since 1991. Over the years, the bank has successfully developed and maintained its identity as one of the leading providers of a host of banking products and services in strict compliance with Shari‟ah principles. Currently operating with 150 branches in 94 major cities of the country, AIB offers a wide array of Islamic financing products such as Murabaha, Ijara, Musharaka and Islamic Export Refinance. 5
- 6. Al - Baraka’s Commitment to Islamic Banking Al-Baraka Islamic Bank and Al-Baraka Banking Group are fully committed to develop and promote an integrated Islamic Financial System. Compliance with the rules and principles of Islamic Shariah is the core of the banking and financial activities and its philosophy. All its banking activities are very closely regulated by a Board of Shariah Advisors based at the Head Office in Bahrain and a Shariah Advisor based in Pakistan, to ensure strict compliance with the highest standards of Islamic Banking principles. 6
- 7. Present Status in Pakistan Currently the authorized capital of Al – Baraka Islamic is US $ 1.5 billion, while the total equity amounts to about US $ 1.5 billion. The Group has a wide geographical presence in the form of Subsidiary banking units in, which in turn provide their services through more than branches. Currently there are 1900+ employees working at different branches of Al – Baraka Islamic at Pakistan. With assets in excess of Rs. 90 billion; a workforce more than 1900+ professionals and a network of 150 branches in 94 cities and towns across Pakistan. 7
- 8. Vision and Mission of AIB Vision To be a leading and a diversified International Islamic Bank, Offering a wide range of Quality Products and Services and forming strategic alliances for a Competitive Edge. Mission We strive to be a Premier Regional Islamic Bank, Dedicated to the Economic and Social Development of our target market, Maximizing our Clients and Shareholders Value And focusing on the Human Resource Development In an environment of Creativity and Innovation. 8
- 9. Assets and Liabilities Asset side products Ijara financing(commercial vehicles) Ijara financing (office equipment) Ijara financing (plant and machinery) Ijara financing (office equipment- consumer) Export Murabaha and murabaha finance Import murabha and Murabaha finance Housing Musharka consumer Commercial construction and purchase Export Musharka Islamic export refinance scheme Liability side products PLS saving account-local PLS saving-foreign Current account Term deposit Al-barka incentive account AMI joint pool account
- 10. Asset side products IJARA for (commercial vehicles, plant and machinery, office equipment Underlying Islamic mode Type of product Basis of pricing Minimum/maximum finance Time Period Target customers Security Ijara corporate SME Kibor plus fixed and variable rates as per bank internal assessment and prs 3-5 years all corporate and SME customers title of leased asset on bank’s name, security deposit and any other security as per PRs
- 11. Ijara finance (office equipment-consumer) Underlying Islamic mode Type of product Basis of pricing Minimum/maximum finance Time Period Target customers Security Ijara Consumer Kibor based fixed plus variable rates As per bank internal assessment and PRs 3-5 years Salaried self employed and businessman title of leased asset on bank’s name, security deposit and any other security as per PRs
- 12. Ahmad Muhammad Ali 820
- 13. Murabaha Finance Underlying Islamic mode Type of product Basis of pricing Minimum/maximum finance Time Period Target customers Security Murabaha Corporate and SME Kibor based fixed plus variable rates As per bank internal assessment and PRs 90 days-1 year All corporate and SME customers Cash, pledge, mortgage, or hypothecation of asset or as per PRs and bank’s requirement
- 14. Import/export Murabaha and Murabaha finance Underlying Islamic mode Type of product Basis of pricing Minimum/maximum finance Time Period Target customers Security Murabaha Corporate and SME Libor based As per bank internal assessment and PRs 90 days-1 year All corporate and SME customers Cash, pledge, mortgage, or hypothecation of asset or as per PRs and bank’s requirement
- 15. Housing Musharaka Consumer Underlying Islamic mode Type of product Basis of pricing Minimum/maximum finance Time Period Target customers Security Diminishing Musharka Consumer Kibor 0.3m-20m 3-20years Salaried, self employed, and businessman Properties are mortgage in banks’ favor, personal guarantee or any other collateral
- 16. Commercial construction and purchase Underlying Islamic mode Type of product Basis of pricing Minimum/maximum finance Time Period Target customers Security Diminishing Musharaka Corporate, SME Kibor As per bank internal assessment and PRs 0-5 years Corporate and SME sector customers Properties are mortgage in banks’ favor, personal guarantee or any other collateral
- 17. Export Musharaka Underlying Islamic mode Type of product Basis of pricing Minimum/maximum finance Time Period Target customers Security Musharaka Corporate Kibor plus spread (pre agreed ratio) As per bank internal assessment and PRs As per bank internal assessment -180days Corporate and SME Pledge, mortgage, or hypothecation of assets
- 18. Islamic export refinance scheme Underlying Islamic mode Type of product Basis of pricing Minimum/maximum finance Time Period Target customers Security Musharaka , istisna, Murabaha, musawama Corporate and SME As per SBP refinance rate As per PRs and bank internal assessment As per PRs -180 days Corporate, SME customers Cash, pledge, collateral, mortgage or hypothecation of assets
- 20. Liability side products PLS saving account local Underlying Islamic mode Acceptable currency Type of product Minimum balance requirement Time Period Profit calculation Periodicity of profit calculation Target customers Service charges Mudarba PKR Term N/A 7days- 5 years Daily product basis Semi annually Individuals, organizations, firms, companies No
- 21. PLS savings account-foreign Underlying Islamic mode Acceptable currency Type of product Minimum balance requirement Time Period Profit calculation Periodicity of profit calculation Target customers Service charges Mudarba Euro, USD,GBP, yen Term N/A 7days- 2years Daily product basis Semi annually Individuals, organizations, firms, companies No
- 22. Current account Underlying Islamic mode Acceptable currency Type of product Minimum balance requirement Time Period Profit calculation Periodicity of profit calculation Target customers Service charges Qard PKR, GBP, Euro, USD Current N/A N/A N/A N/A Individuals, organizations, firms, companies N/A
- 23. Term deposits Underlying Islamic mode Acceptable currency Type of product Minimum balance requirement Time Period Profit calculation Periodicity of profit calculation Target customers Service charges Mudaraba PKR Term N/A 2-3 years Daily product basis At maturity/semi annually Individual, organizations, firms, business N/A
- 24. Al barka incentive account Underlying Islamic mode Acceptable currency Type of product Minimum balance requirement Time Period Profit calculation Periodicity of profit calculation Target customers Service charges Mudarba PKR Savings 0.1m- N/A N/A Daily product basis Semi annual Individual, organizations, firms, business N/A
- 25. AMI joint pool account Underlying Islamic mode Acceptable currency Type of product Minimum balance requirement Time Period Profit calculation Periodicity of profit calculation Target customers Service charges Mudaraba PKR Term 50000-N/A 3months-5 years Daily product basis Semi annually Individual, firms, business, organizations N/A